Two observations. 1. I have mentioned here several times
that we have no way of calculating the abstract labor values of already installed
constant capital unless we have a scientific means of measuring depreciation.
2. I got this note from Mike Griffn. It is a good example of the working of
power in the workplace. Given what
is happening in the airlines, the race to the bottom is speeding up.
UAW Members Brutalized At Cat
Sunday, Jan 9 2005 proved to be a day of infamy for UAW
members world-wide as the fallout from the new six-year contract will ultimately
touch the lives of every member; active, retired, and especially those foolish
enough to join. Without any fight,
any known strategy, UAW leadership surrendered its most cherished values and
any hope of recovery at Caterpillar Tractor Inc. The devastating contract passed by a
narrow margin of 59% after members were told by representatives that they would
strike, be permanently replaced, or that Cat may move production to Dixie.
In a shameful effort to secure a yes vote, the gloves came off and the
threats flourished. Members say the
informational meeting in Peoria IL prior to the vote. became so unruly
after an international Rep was booed off the stage, the meeting was cut short
and the voting began.
In Decatur IL at local 751, in spite of weak
leadership, a savvy rank and file rejected the national agreement and the local
agreement as well, by a margin of nearly 2 to 1. Local 751 in Decatur however, does not have enough votes to
vote down the master agreement. The
militancy in Decatur can be attributed to past leaders who
had the courage to stand up to Cat and the UAW. It was Decatur, who more than
six years ago voted down offers by Cat and the UAW, that left nearly 200 discharged members out in the cold by
such a large margin, the master agreement failed. Cat and the UAW was forced to return to
the bargaining table and reach an agreement that included the discharged
members in spite of the fact the national UAW said there was no more to be
gained. UAW members honored their
heroes while the “Mighty UAW” international union was willing to
desert them.
National and local UAW leaders became the choir of despair with chants
of, “this is not the time”, “this is the best we can do under
these circumstances”, without clearly defining when the right time would
be or what the right circumstances were. Cat began kicking the UAW in 1992 and continued until 1998 when a six-year
concessionary agreement was finally reached. This agreement will continue the beating
for six more years. Do the
math! Eighteen years of,
“this is not the right time”.
How much longer will it take?
Never!
In the past two decades the UAW has been
on a path to destruction through its “jointism”, partnerships with
employers and a variety of other schemes that mimic company unionism. Not one
of those schemes has halted the massive losses in membership suffered by the
UAW. When the UAW does circle the
wagons, the employers are allowed to join the circle. Such was the case at Accuride Wheel in Henderson KY a few years ago. When UAW local 2036 refused to accept a horrible contract
offer, the UAW, after informing the company first, cut off strike benefits to
the 600 plus member local. After an
embarrassing picket of UAW headquarters in Detroit, curiously named “Solidarity
House”, the UAW reinstated benefits to locked-out workers. Months later
the UAW decertified the local and walked away, leaving those members without
jobs, union membership, or hope, after more than three years of struggle. The Regional Director over the Accuride
workers during that struggle is now the International President of the UAW.
Outside the UAW halls considering the offer, corporate media buzzards
circled hoping for opportunities to distort the damage inflicted on UAW
members. One twenty year old, who two years before was
flipping hamburgers at McDonalds, was glad it was over. “This is the best
job I have ever had”, she said. She was tired of all the hassle. Never
walked a picket line, never missed a days work, but she was tired. Does the old adage; “young and
dumb” come to mind? A more
seasoned veteran voiced his anger when he told the vultures that the scabs that
crossed the picket lines in the nineties; are “getting what they
deserved”. The media has
soft-pedaled the contract and have “overlooked” more devastating
and controversial issues. Silence
by the UAW has left the general public in the dark. I guess it’s hard for a rooster to
crow when he’s just laid an egg.
The
new ratified contract has few changes over the previous offer other than
negative. Caterpillar, without blinking, never put another nickel on the table
but shifted costs to different groups of employees. Why would they, with all the white flags
the UAW threw up? Incentive bonuses
were shifted to the “bone us” column to cover health care
costs. Insurance costs for certain
retirees were lowered some, but continue to rise throughout the life of the
agreement. Part of that cost will
come from working members who previously had paid insurance. Temporary employees remain third world
members of the UAW. No benefits, no
representation and no retirement; no hope!
New hires are allowed to become full time under this agreement, but do
not fare much better. The current “supplemental employee” at labor
grade 2, step3 for example has a base wage of
$15.37 an hour. In the same grade
and step if he converts to a “new hire”, he of she will paid $12.50 an hour. The same pay for current employees is $20.44 an hour. New hires will receive benefits, which
they now have to pay for, but NO RETIREMENT! New hires will have a 401K, which they
must pay into and are not a reliable source of retirement income. The August 04
offer gave new hires the option of a 4401k or the Caterpillar retirement. One UAW member who voted for the
agreement said it right; “If we reject this offer, the next one will be
worse”. Cat currently has more than 1100 supplemental employees
representing nearly 15% of their workforce and has offered early retirement
windows for current employees. By
the time this contract expires, Cat may well be close to ending its defined
pension plan. That is a giant step
backward for any union, roughly 60 years.
New hires will in many instances, be working for $10.00 an hour less
than current employees. Considering
that most US workers are working for 1979 level wages today, Cat has relegated
its employees to poverty.
The parts division of Caterpillar, now known as Logistic Services, is
paid so low after the 1998 agreement, some members are eligible for food
stamps. York PA, has only a few UAW members left. Cat has assumed the role of Corporate
Carpetbagger, shifting most of those jobs to North Carolina. The Memphis facility wage scale starts at a whopping
$8.25 an hour from a company boasting record
profits and the best position in the market in the industry. If the Memphis facility survives the six-year agony,
workers can earn $10.50 an hour.
Before we get too excited over this “rags to riches” story, Memphis has been excluded from Plant Closing
Protection. Currently Cat is on the
move to Mexico with UAW jobs from the Peoria area and salaried workers in the
computer group have been outsourced to India.
In the mid-nineties when the Denver logistics UAW local voted to accept the
concession-ladened contract, the local union President committed suicide out of
despair. Everything that union
brother fought against, the UAW has surrendered, and without a fight.
What is in the future for UAW members at Cat? The only possible way to escape the
“Beg Bargaining” that robbed UAW members of the gains from years of
struggle is for the members to organize and take control, local by local, and
elect leadership that is accountable.
Even then there is no guarantee the UAW won’t write off the
workers at Cat like those at Accuride Wheel in the mean time. By the time Cat finishes outsourcing,
moving production, and lowering standards of living, there may not be enough
dues for the UAW to fret over.
As a trade unionist reflecting on our blood-stained history, the sit
down strikes, the men and women murdered by the bosses goons and police, the
blood shed and tears sacrificed by other generations for us, I am angered by
this generation of so-called leadership in our movement so willing to piss on
that sacrifice. From the top of the House of Labor to the bottom; I am shamed
by those who have deserted workers in battle; who have lost the reality of
class struggle, and contaminated our precious union with mirror images of the
Bastards of the Boardroom.
Michael Perelman
Economics Department
California State University
Chico, CA
95929
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Sent: Friday, January 14, 2005 10:05 AM
To: Perelman, Michael
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