Moon of Alabama Brecht quote
May 27, 2005
Unions Are Good

It’s easier to fire workers in Europe than in UNIONISED US plants.
This is the experience of the boss of Valeo, a French car-parts manufacturer that has gone through some tough downsizing in recent years:

Valeo attacks US union system

It is easier to close factories in worker-friendly Europe than in the supposedly free-market US because of the “archaic” practices of American unions, according to the head of one of France’s largest industrial groups.

Thierry Morin, chairman and chief executive of Valeo, the largest listed European car parts maker, has shut or sold 60 factories in the past four years and cut the workforce at many others as he fought to turn round deep losses. The comments come as the United Auto Workers union, which dominates worker relations at the US-owned carmakers, is being pressed to provide financial relief to General Motors, the world’s biggest carmaker by number of vehicles built.

“There is a good management at GM and Ford,” Mr Morin, who counts both companies as customers, told the Financial Times. “But unfortunately they suffer from such an archaic system.”

He said non-unionised factories, such as the car plants built across the anti-union southern states by Japanese, Korean and European manufacturers, did not suffer from the same problems.

One of the first acts of Mr Morin when he took over Valeo in 2001 was to put its loss-making US subsidiary into chapter 11 bankruptcy protection to resolve a stand-off with the IUE electrical union over jobs and pay in Rochester, New York. The group has closed or sold 60 factories around the world since then, and shifted half its workforce to low-cost countries in eastern Europe, Asia and Latin America.

“It is more complicated to close down a plant in North America than in Europe,” Mr Morin said. “Maybe it comes from the fact that there is less of a safety net afterwards for the workers in the US.”

I have little to add to that except that without unions, all workers get fucked

Don’t let’s forget the unions. They can seem to be out of touch and fighting for outdated “privileges”, but they are really fighting so that everybody gets decent working wages and working conditions. Don’t let them down.

Comments

Yup. Unions are inefficient, suffer from politics so petty that they would make academics proud – though academic unions are pretty special – and tend to attract some of the worst hacks and busybodies around.
They are absolutely essential to any sort of sensible society.
I was amused to read somewhere about how Ireland has such a weak union system and how that was one of the reasons for our high growth rates. The unions and employers have been negotiating national pay agreements here for the last ten to fifteen years. Things like a minimum wage have been implemented as part of these agreements. The reductions in tax – both income and corporate – came as a result of improved economic performance, not the opposite.
The free-market crowd are sort of like terrorist organisations claiming responsibility for everything they like but had nothing to do with and blaming everyone else for stuff they don’t like but caused themselves.

Posted by: Colman | May 27 2005 16:58 utc | 1

Mr. Morin is nuts.

Posted by: b | May 27 2005 19:18 utc | 2

industrial relations in the new world
melbourneage. com
Premiers consider court challenge to work laws
By Paul Robinson and Barney Zwartz
May 28, 2005
State Labor premiers are “almost certain” to mount a High Court challenge to the Federal Government’s proposed changes to labour laws.
Federal Labor industrial spokesman Stephen Smith made the prediction yesterday as state Labor premiers spoke out against the changes, which among other things will move workers from state awards to a federal system.
Victorian Premier Steve Bracks said the Federal Government’s changes went against the Australian notion of “a fair go for all”.
The changes have been called the biggest industrial revolution for more than 100 years. When passed into law, they will cut the influence of awards in favour of enterprise agreements; replace the Industrial Relations Commission determination of wages with a new Fair Pay Commission; abolish access to unfair dismissal proceedings for workers at companies employing fewer than 100 people; make it easier for employers to shift workers onto individual contracts and curb the right of union officials to enter workplaces.
Joined by other Labor premiers in Sydney, NSW Premier Bob Carr branded the federal move an “arrogant grab for national power”, adding: “We are all considering the prospect of a High Court challenge initiated by us or in partnership with the trade unions.”
Queensland Premier Peter Beattie predicted that voters who re-elected Mr Howard would desert him. “The Howard battlers will leave in droves over this.”
The ACTU, which is likely to join any High Court challenge, would not rule out a general strike, secretary Greg Combet said.
Prime Minister John Howard had his first taste of workers’ reaction yesterday when he had to move a public announcement confirming the construction of the Geelong bypass because 200 unionists came to remonstrate.
The changes, which the Government says will boost productivity and employment, would actually increase poverty, disrupt workplaces and push Australia closer to a two-class society, according to former industrial regulators. Church groups branded the changes divisive and unjust.
Workplace Relations Minister Kevin Andrews yesterday labelled fears of a disrupted society as “nonsense,” saying the new five-member Fair Pay Commission – to include employer and worker representatives, two labor economists and a businessman – would act fairly. “The way wages are being set is largely unchanged and the way awards will operate is largely unchanged. We just want more flexibility . . .”
But former commission judge Paul Munro viewed the changes, which lessens union power and increases that of employers, with “deep-seated dismay”. He said they would divide the community and disrupt workplaces.
“Institutions that have served Australia well and which have shown great equity and flexibility have been treated in such a shabby manner, motivated by long-harboured ill will by the Prime Minister,” he said. “It has turned back the rights of people at the lowest levels of society to, I think, the 1890s.”
Mr Munro said the changes would drive down wages and lead to the “atomisation” of workforces, where people were left to negotiate individually with resource-rich employers.
Former commission deputy president Joe Isaac said the changes were “loaded against individual workers and unions”.
Churches expressed concern. Canon Ray Cleary, head of the Anglican Social Responsibilities Commission, said the changes would increase poverty and ignored the need for a safety net.
Uniting Church general secretary Terence Corkin said the changes turned people into commodities and the workplace into a marketplace.
The Australian Industry Group’s Heather Ridout said the changes were fair – and that workplaces were “in for a turbulent time”.
– with AAP

Posted by: remembereringgiap | May 27 2005 20:03 utc | 3

jérôme
i’m a little frightened that you are turning into a bolshevik

Posted by: remembereringgiap | May 27 2005 20:50 utc | 4

rgiap – hey, you’re voting “oui”, someone has to fight against ultralibéralisme…

Posted by: Jérôme | May 27 2005 21:22 utc | 5

LOL!!!! power to the people. workers of the world unite!
-damn! i never get sick of saying that!

Posted by: lenin’s ghost | May 27 2005 22:24 utc | 6

I have worked in France and found it the case that once somoene was hired at a French company it was impossible to fire them.
This is perhaps why they ‘close down’ the plants rather than downsize.

Posted by: hopping madbunny | May 27 2005 23:08 utc | 7

Hmm. Well, here it requires that you go through appropriate and fair procedures and have reasonable and fair rules. You can fire someone, you just have to be sure to give them a fair chance to reform before you do.

Posted by: Colman | May 27 2005 23:19 utc | 8

Ahhh, the memories

Posted by: Uncle $cam | May 28 2005 0:32 utc | 9

Well, it seems like it is left to me to play devil’s advocate here. Which is a strange turn of events, as I am probably more radical left-wing than anyone here.
I have little to add to that except that without unions, all workers get fucked
Unions are as guilty of fucking workers as anyone else. Have any of you ever actually worked for a living? Have you seen unions in action?
Unions officials, by and large, are undemocratic pig-swill. The idea of a democratic workplace vote is as about remote as real democracy in America.
Unions are just another power-structure. Usually controlled by not-too-bright chancers who are easy to control and manipulate. Without exception, every union in Australia, America, and the UK, have sold out anyway. They have been an anachronism for a long time. If an IUE electrical union worker in Rochester, New York wanted better pay and conditions, he would have been well aware that he could simply have gotten up off his arse and moved somewhere else. Or hung out his own shingle and gouged as a self-employed electrician or whatever.
Unions were always just another way or controlling workers pay and conditions at an absolute minimum. Even the tactics of unions have always been suspect. Are you aware that most union strikes in large manufacturing always occured at a time when stock levels were too high. When they did force ‘concessions’ or higher wages, it usually turned out to mean that it would take about three years to recoup lost wages from the strike action.
Unions, without exception, have traded away all social gains. France may have a 35 hour working week, but in Australia, you either have the choice of extended unpaid overtime over and above a 40 hour week, or the new paradigm of a lifetime of “permanent part time” where you have to survive of an hourly rate and struggle to get more than 19 hours a week.
In Australia, the exception is the “public service” (the army of lower middle class civil servants), but otherwise, there is no job security for anyone.
I find the comment “but they are really fighting so that everybody gets decent working wages and working conditions. Don’t let them down.” almost laughable. Unions have always worked for vested interests. First, and foremost, any union official has worked first for his own benefit and aggrandisment. In Australia, a good stepping-stone for politics, as the “useless as tits on a bull” Australian Labor Party (ALP) is affiliated with the union movement.
Maybe Australia is ahead of the pack in some areas. But here is a brief summary of how things work in this brave new world.
First, there has been a massive shift in how “capitalism” works. Other than digging crap out of the ground in Western Australia (WA being one giant mining organization) – there is no industry to speak of.
The rest of the country works as a “service economy”, on the back of mining industry. A service economy means that we all get paid by doing each others laundry.
At the top of the pile, you have the medical profession, legal and others, who make their easy money by recycling the exorbitant taxation.
Taxation always hits the “middle income” hardest. This serves two purposes. First, it prevents any middle class people from getting ahead too far and becoming to uppity, and secondly, the income from the middle income classes can be redistributed to the army of unemployed and unemployable, preventing any social unrest while enabling the maintenance of a “structural unemployment rate” that is essential in controlling those who are employed.
The really important shift, is that Capital and Finance are no longer and engine for growth and prosperity. There is too much risk in this, no guarantee of endless and increasing profits.
So now we have “privitisation” (no ‘z’ as the one lasting legacy of Whitlam was to officially change the spelling over every word that has a ‘z’ to an ‘s’). Privitisation is just another code word for “socialise the costs, privitise the profits”.
So far, anything that has any sort of a monopoly has been privitised. All the great and profitable Mutual insurance funds and the like have long gone (now, all profits go to Allianz or whatever they are called.)
Collusion between ‘government’ and ‘industry’ means that driving through Sydney or Melbourne these days is impossible without an electronic eTag. Contracts to build road infrastructure is given in closed-door bids to private companies. This ‘private road’ links between publicly funded roads are a licence to print money.
All the utilities, electricity and so forth, we all build with public money. Now, all this is privatised. Profits from these previously public entities contributed to the public purse. When you consider that public utilities are a no-risk monopoly, and that privitisation of these entities achieves nothing other than diverting public funds to private corporations, then you really have to start thinking about what’s going on.
Our garbage is emptied by a French company. Our fucking garbage!.
The gym (can’t afford it anymore) – is a UK company.
No more can you apply for a job anywhere you like. Before, there was a government job agency, and job ads in the paper. Now, most everyone is forced to go through private employment agencies.
A very large number of people now, work as ‘contractors’ via employment agencies. They, of course, skim up to 25% off the top. As a contractor, there are no benefits. No annual pay, no sick pay, no nothin’ – you are “self employed”.
What the fuck have the unions done. Zip. Zilch.
Absolutely, fucking, bloody nothing.
Fuck the unions!

Posted by: DM | May 28 2005 2:15 utc | 10

Ahem. Teamster here. We’re working on Walmart

Posted by: doug r | May 28 2005 2:54 utc | 11

Statutory holidays. Paid overtime. 40 hour work week. Pensions. Job security. Paid healthcare. Paid sickdays. Higher wages. Grievance procedures.

Posted by: doug r | May 28 2005 2:59 utc | 12

Statutory holidays, paid ovetime, 40 hour work week, paid sick leave, healthcare and pensions, are all embedded in legislation everywhere, it seems, other than in the USA.
The “contract” system in Australia, started with outsourced IT workers. Now they have welders running around with resumes to private placement agencies. Coming your way soon.
So, how does the Teamsters work? You think unionising Walmart is gonna preserve middle-class America?
Is is not that Walmart is one huge Chinese shit-shop. The middle class wages are going to move to the center of production. China.
Marx may have been a hack, but the ‘means of production’ is still a valid economic lever.
Tying heathcare benefits to your job at Walmart, seems to me to be just another way of empowering the employer. It all smacks of indentured labor. And maybe, without the Teamster’s help, the whole thing would implode.
So, do you think that Walmart and the Teamsters are really the way to a bright prosperous future? It’s really gonna empower the worker? He wont be treated as just another cost input?
Got any idea how much this Hoffa character earns? I suppose it’s tied to the base wage of a Walmart employee. You know, like a performance thing. He collects (as he’s a smart guy) – say 2 or 3 times the base wage of the workers he represents. Doing well at that. Not a sweaty job. And if he can push up the wages of the Walmart guy by $1 an hour – well – he’s sweet them – he makes another 3 bucks an hour.

Posted by: DM | May 28 2005 3:54 utc | 13

Walmart just took the McDonalds model and expanded it to general merchandise. In my business (overnight courier) the big non-union shop (FedEx) keeps the unions out by offering high wages and benefits. This is the way it should be. If Walmart had to pay a living wage, then they would be a little more competitive with the rest of the country and maybe they wouldn’t take over the world quite so fast.
Feel free to skate off the work unions have done over the years, most people do. My union may suck, but not having one sucks more.

Posted by: doug r | May 28 2005 6:50 utc | 14

Doug
I agree with that. It’s something, but unions are really not up to the task.
I’ve seen strikers sitting outside a department store in Manila for 9 months. Useless. The store continued to operate. Shoppers (wage slaves from elsewhere) – continue to ignore the strikers and still shop in the store.
Now, you might think, hey, that’s some 3rd world country half way around the world. But Manila in many parts, looks like any city in America. High rise office building, shopping malls, department stores, plazas, cafes. Everything costs about the same as it does in America (hey, they inherited their corrupt polital system and oligarchy from America).
These hapless strikers were on strike, because the billionaire owner was paying them about USD10 a day (after 10-15 years service in many cases).
Point of this little story is that unions have been busted a long time ago, and present absolutely no threat to capital. At best, they just act as a nice little counterbalance to keep the cogs of exploitation of labor turning over nicely.
If I was in your position, I might also be one of Hoffa’s henchmen, but for the bigger picture, we are gonna have to start thinking outside this particular bigboss-union square.

Posted by: DM | May 28 2005 8:43 utc | 15

(sorry about hogging bandwidth here)
Doug – if you are still around.
Can you tell me how much the “base pay” (i.e. the lowest level) is for a Walmart employee, and how much a Big Mac costs (I can then do the currency conversion and compare with the lowest level wages in Australia).

Posted by: DM | May 28 2005 8:51 utc | 16

Here in (Beautiful) British Columbia, the minimum wage is $8.00 an hour, with a training wage of $6.00 an hour. A Big Mac is $2.99, except when it’s the special (different special every day of the week), when it’s $1.89.
I know these strikes can go on. My own Teamster magazine has stories of multi-year strikes. Fortunately, I’m in a business that needs constant revenue to stay in business…the last strike against UPS in the USA lasted barely a week.
An important part of the equation is the government not interferring in the right to organize and also preventing harassment.
As for Hoffa Jr, I didn’t vote for him, but he did win our election. I’m a little uncomfortable with how tight the union can get with some companies, but that’s what elections are for. Ever since the U. S. federal government had the union under trusteeship for a few years, things have cleaned up a fair bit-there’s even a toll-free phone number. This all goes back to the government doing its job as well.
All in all, my union definately sucks less than not having one, especially when you have seniority 🙂

Posted by: doug r | May 28 2005 16:00 utc | 17

DM –
Pre-tax minimum wage is $5.15; front-line Walmart employees probably get $5.15-7.00 depending on location.
I’m not sure how much a Big Mac costs by itself, but a #1 combo (Big Mac, medium fries, 20oz refillable soda) usually costs $3.99 plus local sales tax of 1-10%. Figure $2.50 for the sandwich itself.
So the typical WM worker earns enough for a truly disgusting meal in about an hour. On the other hand, a sit-down meal at a tolerable restaurant (say, Chili’s) for a family of 4 runs upwards of $40 without any alcoholic beverages. For a WM worker, that’s a full day of work, and thus probably a rare luxury. Which is rather sad.

Posted by: Tom DC/VA | May 28 2005 16:08 utc | 18

DM …”unfortunately” I agree with every word you said about Australia. And thank you for taking time to write this and of course for being fluent in English (ha-ha) to be able to explain what I think and feel about “Australian case” too.
I don’t know…it’s obviously epidemic around developed world…” GRABilisation” is probably the way human history works…then comes revolution and there we go again…and again…and again…
Quote:
we are gonna have to start thinking outside this particular bigboss-union square.
***
Again I agree…but what do you think is on the menu?

Posted by: vbo | May 29 2005 13:15 utc | 19

Union management disgusts me. They sit there bemoaning the political atmosphere. They need to start doing their jobs. If the jobs are going to Mexico and the Pacific rim then these lazy mopes ought to start organizing there. If we are to have multi-national corporations then we need to have multi-national unions. That is the only way balancing the power is going to work.
Start suing companies who disreguard safety and environmental standards in Mexico. Put pressure on US companies who buy these products. Threaten and/or pursue a boycott.
China, what can we say about this magnificent ruse. Force the US government to withdraw most favored nation status from these communists before they make all of our consumer products. No western country can compete with China because their currency is not traded on the open market. Without this simply check and balance US workers could work for $1.00/day and still not compete because the Chinese will just set the currency at a lower trade rate. The Chinese have found the loophole and are running a Mack truck through it only because our idiot politicians no nothing about economics but too much about embryos and homophobia.

Posted by: Newclear | May 31 2005 0:05 utc | 20

@vbo
I think Newclear has hit at least one nail on the head. If we are to have multi-national corporations then we need to have multi-national unions.
But don’t hold you breath (just yet). The worker’s of the world might unite, but only when this race to the bottom has finished.
Oh, and on the Big Mac economic indicators, it looks like the poor Walmart SOB’s are about twice as poor as their Australian counterparts. But every cloud has a silver lining, who want’s to eat Big Mac’s anyway?

Posted by: DM | May 31 2005 5:23 utc | 21

Unions are outdated and pointless. Not only are they closed-minded to the future and macro-prospective they also use foolish scare-tactics to get people on-side.
Our future is one without unions
-Unions are a cancer, conservatism is the cure

Posted by: Conservative Capitalist | Jun 29 2006 6:20 utc | 22

Laissez-faire capitalism is outdated and pointless and horrific and cancerous. sort of like a vampire sucking the blood of everyone else’s hard work. what does a shareholder do to produce one fucking thing?
nothing.
time to let go of stupid superstitions like “the divine right of capital” and dethrone/depose/decapitate the poseurs who want to make you think that b/c they were born with a silver spoon, we should swallow their bullshit and say thank you.
too bad the fascists in america took over after WWII…the war isn’t over, tho. and you will lose.
if George W. were born in the projects, you’d hate him for being a lazy ass no good shit. as is, you think he’s the second coming of your mastabatory fantasies that you have a right to your accident of birth.
I detest conservative capitalists and hope you die from breathing the poisoned air of your unregulated factories.
other than that, have a nice day!

Posted by: fauxreal | Jun 29 2006 11:10 utc | 23