Finding Lessons of Solidarity in Auto Industry Shake-Up

By Bankole Thompson and Mitch Moxley Inter Press
Service June 20, 2010

http://ipsnews.net/news.asp?idnews=51886

DETROIT/BEIJING

As thousands of people from around the world prepare to
converge in Detroit, where expectations are high for
the Jun. 22-26 U.S. Social Forum, activists and auto
workers hope the meet will be an opportunity to chart a
sustainable future for an industry that provides 1.7
million U.S. jobs.

Detroit has been hit harder than nearly any other U.S.
city by growing competition from Asia, rising oil
prices, and the economic recession that took a heavy
toll on the "Big Three" U.S. carmakers - Chrysler, Ford
and General Motors.

According to the Centre for Automotive Research (CAR),
in 2007, for the first time in history, international
firms like Toyota, Honda and Hyundai sold about half of
the cars bought in the U.S. By the end of 2009, the
U.S. carmakers' share had fallen further, to an
estimated 42 percent.

Many critics of the Big Three say their own design
failures and disinterest in fuel efficiency are at
least partly to blame - in 2006, for example, Consumer
Reports declared that all 10 of the cars that it
considered to be the 10 best were built by Japanese
companies.

One result has been a hemorrhaging of U.S. auto
industry jobs - between 1993 and 2008, the state of
Michigan (home to the city of Detroit) lost 83,000 auto
manufacturing jobs. By 2008, the entire U.S. car
industry was operating at less than 50 percent
capacity, according to CAR figures.

"Worldwide, new markets are emerging and the U.S. will
remain stagnant, unstable because wealth and income
continues to shift from working people to the rich. Oil
supplies and prices will remain a wild card too," Frank
Joyce, who served as spokesperson for the United Auto
Workers (UAW) union, told IPS.

"The benchmarks on quality, production systems, design
and marketing are now quite comparable across the
globe," Joyce said. "Even the gap in labour costs is
narrowing as U.S. auto wages are driven down and wages
in China and elsewhere are moving up."

Labour activists say they are looking at the big
picture and considering the kinds of policies that fit
with the current highly globalised economy, which is
vastly different from the industrial economy that once
improved living standards for U.S. workers and helped
to stabilise families.

Richard Feldman, a UAW member and participant in the
upcoming U.S. Social Forum, said the struggles faced by
automotive workers in the U.S. are similar to what
workers in Asia are going through despite the seeming
growth of the Asian automotive market.

"Toyota closed their only union represented facility in
the U.S. and we now need to deepen our commitment to
organise the Asian and European multinational
corporations in the South," Feldman said. "I don't
think it is about losing to Asia but recognising we
need to create new concepts of transportation that
respect the limits of planetary resources and where
workers and communities are respected and given a voice
at the table."

Indeed, a wave of unrest at foreign-owned factories in
China is now showing signs of spreading into the poorer
interior regions.

The disputes are a black eye for China's Communist
Party, which has long sought to discourage worker
activism and has dealt out harsh punishments to
protestors. The unrest has not been reported widely in
local media.

Honda Motor Company, for instance, has struggled with
several labour disputes at four China factories. A
spate of worker suicides has hounded other firms.

There have been 12 suicide attempts since January at
two sprawling Foxconn campuses in Shenzhen. The
factories, which employ about 400,000, produce products
for companies including Apple, Dell and Hewlett-
Packard.

In response to the unrest, Beijing has promised higher
wages for workers and farmers, even as local officials
continue to attract investors with promises of cheap
labour. Foxconn raised salaries by 66 percent and Honda
by at least 20 percent.

Following the disputes at Honda and Foxconn, strikes
were also reported at other foreign run factories far
from the wealthier Pearl River Delta region, including
the factory of a Taiwanese-owned sports goods supplier
in Jiangxi province and at Brother Industries, a
Japanese sewing machine maker in Xian. The disputes
focus on low pay and high living costs, long hours with
little to no rest, and employers trying to rein in
costs.

Experts say the unrest is reflective of a new
generation of workers who are unable or unwilling to
handle the conditions their predecessors faced.

"The majority of migrant workers now are young people
born in the late 1980s and early 1990s. They went to
school but lacked enough schooling. They want a decent
salary and life in cities. If they feel treated
unfairly, they will stand up and fight against it,"
says Xiao Qingshan, a labour activist based in
Guangdong.

Zhou Xiaozhen, a sociology professor at Renmin
University in Beijing, says the recent unrest occurred
in part because the factories belonged to foreign owned
companies, adding that labour protests would have been
halted quickly at state- owned enterprises. But he also
attributed the disputes to poor working conditions and
bad management. He adds that the ban on labour unions
makes it difficult for workers to improve their work
conditions.

"China's workers are at a disadvantaged position, and
they can't unite together. Employers can do whatever
they want, which makes suicides and labour unrest break
out," Zhou says.

Building alliances among workers around the world is
one of the goals of the second U.S. Social Forum, a
spin-off of the World Social Forum movement.

Joyce said the week-long gathering in Detroit will help
forge a strong democratic response to propel a new wave
of social and economic justice and progress, because
the automakers need to be "more green, far more
oriented toward mass transit and more economically fair
to workers".

Feldman added that while technology and outsourcing has
been an issue for the U.S. auto industry - 16 percent
of North American vehicle production is currently in
Mexico and expected to grow to 20 percent in coming
years - the challenge now is to create a local
sustainable economy with green transportation.

"Work is a human right," Feldman said. "A new American
dream is being created. to increase our standard of
living to create a new quality of life where we live
more simply."

*Mitch Moxley reported from Beijing.
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