“Racing To the Bottom In Michigan”: And A Fine “Happy Holidays” To Michigan Workers Too
It won’t be formal until next Tuesday (thanks to a five-day delay requirement for bills passed by both Houses), but the Michigan legislature has indeed approved “right-to-work” legislation in a lame-duck session blitzkrieg of enormous audacity. There were no hearings, no public debate, and virtually no warning before the famously pro-labor state joined the Greater South in declaring itself union-unfriendly territory, as Gov. Rick Snyder abruptly reversed his prior opposition to consideration of such legislation. That very day the hammer came down in a series of votes.
One of the right-to-work bills (the one affecting public-sector workers) passed the Michigan House by a 58-52 margin, just one vote below the number of Republicans who will serve in the next session. This reinforces the impression that GOpers feared they wouldn’t have to votes to enact right-to-work had they utilized the normal legislative process and waited until representatives elected on November 6 were in place.
The panic-stricken nature of the GOP coup wasn’t much reflected in the bland and empty public rationales offered for it by Snyder:
In an interview with The Associated Press, Snyder said he had kept the issue at arm’s length while pursuing other programs to bolster the state economy. But he said circumstances had pushed the matter to the forefront.
“It is a divisive issue,” he acknowledged. “But it was already being divisive over the past few weeks, so let’s get this resolved. Let’s reach a conclusion that’s in the best interests of all.”
Also influencing his decision, he said, were reports that some 90 companies had decided to locate in Indiana since that state adopted right-to-work legislation. “That’s thousands of jobs, and we want to have that kind of success in Michigan,” he said.
OMG, Indiana’s screwing its workers, so Michigan has to do the same right now! This is very literally a “race to the bottom” if ever there has been one.
Because Republican legislators shrewdly attached an appropriation to the bill, it will not be subject to reversal by initiative. Looks like November 2014 will be the first opportunity for some accountability, when the entire legislature is up for re-election, along with Snyder.
The Michigan Senate’s Democratic Leader, Gretchen Whitmer, had a tart description of the entire manuever:
“These guys have lied to us all along the way,” she said. “They are pushing through the most divisive legislation they could come up with in the dark of night, at the end of a lame-duck session and then they’re going to hightail it out of town. It’s cowardly.”
And a fine “happy holidays” to Michigan workers, too.
By: Ed Kilgore, Contributing Writer, Washington Monthly Political Animal, December 7, 2012
“Michigan, A Right-to-Work State?”: Purely Political, Motivated By A Desire To Punish Supporters Of The Democratic Party
Labor never ruled Michigan as such. It may have been home to the best and biggest American union, the United Auto Workers, but even at the height of their power, the UAW could seldom elect its candidates to Detroit city government. Still, the UAW dominated the state’s Democratic Party and much of state politics for decades—at least, until the auto industry radically downsized.
Just how downsized union power has become is apparent from the decision of the state’s Republican governor, Rick Snyder, to support a right-to-work bill that began speeding its way through the state’s lame-duck GOP-controlled legislature on Thursday. Should the bill become law—and given Republican control of state government, it’s hard to envision how it won’t—Michigan would join historically more conservative Indiana as the second state from the industrial Midwest to move to right-to-work status. Until last year, when Indiana enacted its statute, right-to-work states were confined to the South, the Plains states and the Mountain West—states devoid of a major union presence. That such laws are now coming to the industrial Midwest is just more evidence of the continual weakening of industrial unions—the unions that have taken the most direct hit from offshoring and mechanization.
But why enact such laws when most unions are no longer big enough to take any bite out of company profits? In fact, the pressure for such laws isn’t coming from companies like Ford or GM, which can how hire new union workers for half of what they pay their more veteran workers. It’s purely political. Weakened though they be in the economic arena, unions still punch well above their weight at election time. That’s one reason why President Obama carried every state in the industrial Midwest save (almost) perpetually Republican Indiana.
And if anyone doubts that politics lies behind the Michigan Republicans’ decision to enact a right-to-work bill, consider one of the bill’s particulars: the only unions it exempts from the bill’s coverage, the Wall Street Journal is reporting, are police and firefighter unions. Snyder said that the GOP had carved out that exception because their jobs needed protection from labor strife.
Think about that for a moment. The effect of the Republicans’ exemption would be to ensure police and firefighters have the strongest unions in the state, the ones most capable of taking job actions when they sought to better their pay and working conditions. Elsewhere across the U.S. today, states and cities are trying to scale back pensions and other benefits of their employees, and police and firefighters are often targeted because their pay and benefits exceed those of other public workers. Moreover, historically, governors and mayors have been wary of the power of such unions—Republican governors and mayors in particular. Massachusetts Gov. Calvin Coolidge first came to the nation’s attention by breaking a Boston police strike in 1919—“There is no right to strike against the public safety,” he proclaimed. It was his strikebreaking that won him a place on the 1920 Republican ticket.
Now, however, Snyder, like Wisconsin Gov. Scott Walker, has created a police-and-firefighter carve out. The reason is purely political—in Michigan, as in Wisconsin, the police and firefighter unions often support Republicans for state and local office, and Republicans want to make sure that they’ll continue to do so with undiminished clout. The carve-out, said Michigan House Democratic leader Tim Greimel, “makes it very clear that this is not about sound economic policy. It’s motivated by a desire to punish supporters of the Democratic Party.”
By: Harold Meyerson, Editor-at-Large, The American Prospect, December 7, 2012
“Shooting Yourself In The Face”: Why And How The Romney Campaign Screwed Up
In the last week or so, Mitt Romney has accused Barack Obama of focusing his campaign on “small things,” but let’s be honest—at this point, everybody is focused on small things. And these small things are unlikely to make much of a difference with so little time left. Which is why it was odd to see the Romney campaign stumble so badly with the Jeeps being built in China attack. How did they manage to take a criticism that would likely have just glanced off Obama anyway, and turn it into something that not only had everyone talking about Obama’s best case to Ohio voters (the auto bailout), but also made Romney look cynical and dishonest?
Here’s what I think happened. They heard the first, somewhat unclear report that Chrysler was going to be manufacturing Jeeps in China, without quite understanding what it meant, namely that they will be making them for the Chinese market (because of Chinese tarriffs, Chrysler would only be able to sell the Jeeps there if they make them there). By the time they figured out all the facts, Romney had already mentioned it on the stump, saying inaccurately that the company was “thinking of moving all production to China.” So the campaign probably figured, we can still use this to try to discredit the bailout, we’ll just be careful about the words we use.
And that’s where they didn’t quite grasp the implications of what they were doing. If you look at the ad they made, you’ll see that though it’s obviously meant to deceive people into thinking American jobs are being sent to China as a result of the bailout, the words are literally true. “Obama took GM and Chrysler into bankruptcy,” the ad says, “and sold Chrysler to Italians who are going to build Jeeps [pause for effect] in China.” The Romney campaign thought they could play by the ordinary campaign rules, which say that if you say something true but intentionally misleading, you will usually be judged not guilty. Reporters will discuss the issue in the he said/she said format, with you saying you’re telling the truth and your opponent saying you aren’t, and you can declare victory.
But that’s not what happened. Instead, Romney got a wave of negative coverage over the issue, with journalist after journalist saying forthrightly in their stories that the Romney attack is misleading or deceptive. This was particularly true in Michigan and Ohio, where the state of the auto industry is kind of important. Why did they do that? Two reasons, I think. The first and less important one is that after so many shamelessly false statements by Romney and his campaign, journalists’ tolerance for this stuff may have run out. But the more important reason is the car companies stepped up to act as third-party validators of the truth. The Chrysler CEO wrote an emphatic letter to the company’s employees assuring them no American jobs were moving to China, and a GM spokesperson criticized the ad as well.
Which, if the Romney campaign had been a bit more thoughtful, they might have expected. Don’t forget that Chrysler and GM have their own interest in maintaining support for the bailout. They got lots of help from American taxpayers, and they want those taxpayers to see the bailout as a success story, continue to feel good about American car companies, and continue to buy their cars. They might stay silent while Republicans criticize the bailout, but if you accuse them of a specific act that they aren’t guilty of, they’re going to speak up. Romney stepped over a line from attacking Barack Obama to attacking Chrysler, and he should have anticipated that Chrysler wouldn’t take it lying down. When Chrysler spoke up and explained the facts, that gave the press permission to step out of the he said/she said bind and report accurately that Romney was being misleading.
And that’s how, just a few days before the election, Romney shot himself in the foot in the one state he absolutely, positively can’t afford to lose.
By: Paul Waldman, Contributing Editor, The American Prospect, November 5, 2012
“The Heartland Election”: Ultimately Determined By “Makers” Quite Different From The Ones In Paul Ryan’s Speeches
When Mayor Bobby J. Hopewell talks about the importance of manufacturing to this friendly Michigan town with a name that lends itself to song, he doesn’t reel off the usual list of heavy industries typically associated with the word “factory.”
He speaks of Kalsec, the Kalamazoo Spice Extraction Company founded in 1958 that produces and markets natural herbs and spices for food manufacturers. He mentions Fabri-Kal, a 62-year-old packaging company that describes itself as “the seventh-largest plastic thermoformer in North America.” Think of products in drug stores encased in heavy plastic. And he doesn’t leave out the pharmaceutical industry, long vital to his city’s economy.
Yes, we still make a lot of stuff in the United States of America, and one of the good things about this election is that it is likely to be decided in the nation’s industrial heartland — in the towns and cities of Ohio above all, but also in Michigan, Pennsylvania and Wisconsin.
President Obama almost certainly needs these states to win reelection, and if he does, manufacturing is destined for a larger role in the American economic conversation. Many promises have been made this year to the people and the communities whose ability to thrive has long depended upon manufacturing. The campaign’s thrust should move them to the heart of our efforts to seek a path up from the financial catastrophe that engulfed the country in 2008.
For two decades now, we have acted as if nearly all of us are destined to work in the tech industry or health care — or to survive on money that trickles our way courtesy of the world of finance. But while Hopewell is proud of the part played in his city by universities and those engaged in work involving what he calls “intellectual property,” he adds: “We are major makers in the region.”
When Hopewell is asked if he used the term “makers” in the way Paul Ryan does in drawing a distinction between “makers” and “takers” — between those who produce and those who get government aid — this Democrat laughs heartily. No, he says, his views have little in common with Ryan’s. The mayor is talking about manufacturing, pure and simple.
Leaders of traditional factory towns are by no means interested in a stagnant world in which members of each generation follows their parents into the same old factory job. On the contrary, this city is proud of “The Kalamazoo Promise,” the remarkable initiative of anonymous local donors who have established a fund that pays for a college education for every graduate of the city’s schools.
In Parma, Ohio, the industrial suburb of Cleveland where both Bruce Springsteen and Bill Clinton recently campaigned on Obama’s behalf, Mayor Tim DeGeeter said the top priority of the city’s blue-collar workers is a college education for their children. Parma and places like it, he adds, also want the sort of economic development that creates higher-end jobs so graduates can stay in the area, “and not have to move to Phoenix or Charlotte.”
What both mayors are saying (there are many like them) is that they want the market system to work for their communities, but do not want to leave their citizens utterly at the mercy of decisions made by economic actors far away, or of economic forces that no one controls.
This is why the rescue of the auto industry has been such a defining campaign issue in the Midwest. In Parma, DeGeeter notes that the auto revival means that GM recently made a $20 million investment in its stamping plant in the city. “That helps me sleep at night,” he says.
Hopewell says that even though the auto industry is not as important to Kalamazoo as it is in the Detroit area, “you can’t be a Michigander and not understand the importance of the auto industry, and not understand what it has done for our state.” The Republican sweep in Michigan in 2010 suggested it might be open to the GOP’s presidential candidate this year. But so far, it has remained anchored in Obama’s camp.
More broadly, white voters without college educations are voting for Obama at nearly twice the rate in the Midwest as in the South. In the Midwest, Obama is drawing 41 percent of their votes, according to a recent Washington Post/ABC News Poll, compared with only 24 percent in the South. If Obama prevails, “makers” of a sort quite different from the ones in Ryan’s speeches will have played a central role.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, October 28, 2012
“Fantasy And Fear Based”: Why Mitt Romney’s Bogus Jeep Claims Matter
Mitt Romney campaigned in Defiance, Ohio, last night, and rolled out a new argument. “I saw a story today that one of the great manufacturers in this state, Jeep, now owned by the Italians, is thinking of moving all production to China,” he said. “I will fight for every good job in America, I’m going to fight to make sure trade is fair, and if it’s fair, America will win.”
There are a few problems with this line of attack, starting with the simple fact that Romney wasn’t telling the truth. As Chrysler itself explained, the company intends to build Jeeps in China to be sold in China, but isn’t moving American jobs abroad.
On Oct. 22, 2012, at 11:10 a.m. ET, the Bloomberg News report “Fiat Says Jeep® Output May Return to China as Demand Rises” stated “Chrysler currently builds all Jeep SUV models at plants in Michigan, Illinois and Ohio. Manley (President and CEO of the Jeep brand) referred to adding Jeep production sites rather than shifting output from North America to China.”
Despite clear and accurate reporting, the take has given birth to a number of stories making readers believe that Chrysler plans to shift all Jeep production to China from North America, and therefore idle assembly lines and U.S. workforce. It is a leap that would be difficult even for professional circus acrobats.
Let’s set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China. It’s simply reviewing the opportunities to return Jeep output to China for the world’s largest auto market. U.S. Jeep assembly lines will continue to stay in operation. A careful and unbiased reading of the Bloomberg take would have saved unnecessary fantasies and extravagant comments. [emphasis in the original]
All of this, incidentally, is rather ironic given the successful efforts of the Obama administration when it comes to China and Jeeps, specifically.
Greg Sargent explained well why this matters: “Romney may very well be the next president. That’s a position of some responsibility. Yet he and his campaign rushed to tell voters a story designed to stoke their fears for their livelihoods without bothering to vet it for basic accuracy. This is not a small thing. It reveals the depth of Romney’s blithe lack of concern for the truth — and the subservience of it to his own political ambitions.”
Indeed, we can take this a step further.
Romney specifically urged business leaders to give their employees voting instructions — many took Romney’s suggestion seriously — and as a consequence, workers in a growing number of businesses are being told their jobs may be dependent on the outcome of the election.
Romney’s comments in Defiance are part of the same kind of fear-based argument: vote the right way or you’ll be unemployed. Your livelihood is at stake, so support the candidate who opposed President Obama’s successful rescue of the auto industry and got rich laying off American workers.
For additional context, it’s worth noting that the Detroit News reports today that Chrysler is adding an additional 1,100 new jobs. Why? To build more Jeeps right here in the United States.
By: Steve Benen, The Maddow Blog, October 26, 2012
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