Sunday, December 07, 2008

Classism and Detriot

The column is a week old but the ideas are worth revisiting.

E. J. Dionne Jr. - Crunch Time for the Big 3 - washingtonpost.com: "There is a paradox at the heart of the proposed bailout of the auto industry. The rescue would have no chance of passing without the muscle of the Big Three's unionized workforce. Yet you can't turn around without hearing someone trash autoworkers for the terrible crime of trying to earn a decent living...

...The auto companies are having trouble securing help precisely because members of Congress are overwhelmed, even appalled, by the hundreds of billions of dollars they have already shoved out the door on behalf of the finance industry. One of Pelosi's top lieutenants referred to the phenomenon as "bailout fatigue."

Yet the auto industry will almost certainly be tided over precisely because the economy is in such turmoil. The dominant view in Congress is that the country can't afford to risk the financial and human calamities that bankruptcy by the Big Three would inevitably trigger...

...The failure of the Big Three is regularly attributed to the high wages and benefits earned by members of the United Auto Workers union, and it's true that the Detroit-based auto companies operate under heavy "legacy costs" for retirees' pensions and health coverage negotiated during the industry's fat times.

But the blame-the-workers-first cant ignores the fact that if the Big Three had designed better cars, they would not have lost as much market share to Toyota, Nissan and other competitors. The unions did not prevent management from producing a better product -- and I say that as someone who has enjoyed driving Saturns for the past 15 years..."

No comments: