“Combating Concentrated Wealth And Power”: The Right To Form A Union Should Be A Civil Right
In 1961, Martin Luther King Jr. spoke to the United Auto Workers about what the civil rights movement had learned from the labor movement. He said that, in the 1930s, “you creatively stood up for your rights by sitting down at your machines, just as our courageous students are sitting down at lunch counters across the South.”
When King was describing the “kinship” between the two movements, organized labor was strong, representing about a third of the non-agricultural private-sector workforce. The civil rights movement was still a fledgling campaign, not yet having won passage of the Civil Rights Act or the Voting Rights Act.
This Labor Day, the roles have reversed. The civil rights movement is the nation’s iconic cause. The gay rights movement, hardly a blip on the radar screen a half-century ago, is winning meaningful victories in the courts and in legislatures. But unions are on the road to virtual extinction.
Even public-sector unions, now a majority of the labor movement, are on the defensive. A new movie, “Won’t Back Down,” unfairly paints teachers unions as impediments to quality education for students of color. One character asks, “When did Norma Rae get to be the bad guy?”
To revive itself, labor must rediscover its roots as an early civil rights movement for workers. In some places, this is already starting to happen. On Aug. 11, the AFL-CIO held a massive rally in Philadelphia demanding a “Second Bill of Rights,” including the right to organize and bargain collectively. This summer, the UAW has been trying to organize a Nissan plant in Canton, Miss., where 70 percent of the workforce is African American, using a civil rights frame.
“The civil rights experience was fought on that very ground,” the UAW’s Gary Casteel told Reuters. “We’ve been saying that worker rights is the civil rights battle of the 21st century.”
In particular, unions should emulate three strategies of the civil rights movement.
First, labor must make clear, in word and deed, that it is part of a broader movement for social justice and against concentrated wealth and power, not just a special interest concerned only with its membership. The civil rights movement has succeeded when it has made a pitch for ending discrimination universally, and it has struggled when focusing on narrow, race-specific preferences. Labor has a good case to make: When union wages increase, nonunion employers respond by raising pay, too, to attract workers. And each percentage-point decline in the U.S. unionization rate has been accompanied by a comparable fall in the proportion of income going to the middle class.
Second, unions need to show that they are a vehicle for vindicating the individual rights that Americans hold dear against the power of large employers and the government. Just as King fought for individual civil rights as a fulfillment of the Declaration of Independence’s promise of equal opportunity, so the labor movement should fight for individuals’ First Amendment right to engage in the freedom of association, including the right to form a union.
Third, like the civil rights movement, labor needs to codify its notion of rights through strong federal legislation. The crowning glory of the civil rights movement is the Civil Rights Act of 1964, which through the force of law and sanctions helped delegitimize racial bias. Organized labor has the National Labor Relations Act of 1935, which institutionalizes the right to organize, but its sanctions are so weak that employers routinely flout the law and pay the penalties. In part because employers frequently fire or demote employees for trying to unionize, the watchdog group Freedom House rates the United States as less free for labor than 41 other nations.
The Civil Rights Act should be amended to outlaw employment discrimination not only on the basis of race and sex, but also for exercising the right to join a union. Doing so would allow employees to sue in federal court and to receive compensatory and punitive damages from employers. It would stigmatize employers who broke the law as civil rights violators. Without employers trying to block organization, polls suggest that many American workers would join unions, if given a free choice.
Organized labor has been written off before. But if a civil rights approach succeeds in strengthening the movement, more people will join it. And if part of the reason the gay rights movement is succeeding is that more people know someone who is gay, the growth of the labor movement could generate a similar virtuous cycle for American unions.
By: Richard D. Kahlenberg and Moshe Z. Marvit
“Let Detroit Go Bankrupt”: Mitt Romney In His Own Words
If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed.
Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course — the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check.
I love cars, American cars. I was born in Detroit, the son of an auto chief executive. In 1954, my dad, George Romney, was tapped to run American Motors when its president suddenly died. The company itself was on life support — banks were threatening to deal it a death blow. The stock collapsed. I watched Dad work to turn the company around — and years later at business school, they were still talking about it. From the lessons of that turnaround, and from my own experiences, I have several prescriptions for Detroit’s automakers.
First, their huge disadvantage in costs relative to foreign brands must be eliminated. That means new labor agreements to align pay and benefits to match those of workers at competitors like BMW, Honda, Nissan and Toyota. Furthermore, retiree benefits must be reduced so that the total burden per auto for domestic makers is not higher than that of foreign producers.
That extra burden is estimated to be more than $2,000 per car. Think what that means: Ford, for example, needs to cut $2,000 worth of features and quality out of its Taurus to compete with Toyota’s Avalon. Of course the Avalon feels like a better product — it has $2,000 more put into it. Considering this disadvantage, Detroit has done a remarkable job of designing and engineering its cars. But if this cost penalty persists, any bailout will only delay the inevitable.
Second, management as is must go. New faces should be recruited from unrelated industries — from companies widely respected for excellence in marketing, innovation, creativity and labor relations.
The new management must work with labor leaders to see that the enmity between labor and management comes to an end. This division is a holdover from the early years of the last century, when unions brought workers job security and better wages and benefits. But as Walter Reuther, the former head of the United Automobile Workers, said to my father, “Getting more and more pay for less and less work is a dead-end street.”
You don’t have to look far for industries with unions that went down that road. Companies in the 21st century cannot perpetuate the destructive labor relations of the 20th. This will mean a new direction for the U.A.W., profit sharing or stock grants to all employees and a change in Big Three management culture.
The need for collaboration will mean accepting sanity in salaries and perks. At American Motors, my dad cut his pay and that of his executive team, he bought stock in the company, and he went out to factories to talk to workers directly. Get rid of the planes, the executive dining rooms — all the symbols that breed resentment among the hundreds of thousands who will also be sacrificing to keep the companies afloat.
Investments must be made for the future. No more focus on quarterly earnings or the kind of short-term stock appreciation that means quick riches for executives with options. Manage with an eye on cash flow, balance sheets and long-term appreciation. Invest in truly competitive products and innovative technologies — especially fuel-saving designs — that may not arrive for years. Starving research and development is like eating the seed corn.
Just as important to the future of American carmakers is the sales force. When sales are down, you don’t want to lose the only people who can get them to grow. So don’t fire the best dealers, and don’t crush them with new financial or performance demands they can’t meet.
It is not wrong to ask for government help, but the automakers should come up with a win-win proposition. I believe the federal government should invest substantially more in basic research — on new energy sources, fuel-economy technology, materials science and the like — that will ultimately benefit the automotive industry, along with many others. I believe Washington should raise energy research spending to $20 billion a year, from the $4 billion that is spent today. The research could be done at universities, at research labs and even through public-private collaboration. The federal government should also rectify the imbedded tax penalties that favor foreign carmakers.
But don’t ask Washington to give shareholders and bondholders a free pass — they bet on management and they lost.
The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs. The federal government should provide guarantees for post-bankruptcy financing and assure car buyers that their warranties are not at risk.
In a managed bankruptcy, the federal government would propel newly competitive and viable automakers, rather than seal their fate with a bailout check.
By: This article originally appeared in The New York Times on November 18, 2008, written by none other than Op-Ed Contributor, Willard Mitt Romney, a current candidate for the GOP Republican Presidential Nomination
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