Tuesday, January 24, 2012

Lockouts: Capitalism 2012

Corporations, or rather, their CEO's, are feeling their oats. They're sitting on mountains of profits and can see, from their corner window offices, the endless reserve army of the desperate, just waiting to be asked: work, no matter how badly paid, is better than no work at all.

So, more and more corporations aren't tolerating their union workers any longer: they're locking them out, or threatening to do so. If unions attempt to negotiate for their members, corporations refuse to listen. Instead, they demand: lower wages and benefits; they don't budge. It doesn't matter that their corporations have high profits at current wage levels; they want to cut wages, cut benefits, and claim they'll go out of business, or relocate, or offshore, if they don't get their way, or simply will hire replacement workers. After they make their claim--unsubstantiated by their balance sheets--they lock the doors if unions don't cave. Seventeen have done so in 2011, but before this year, lockouts were rare.

It's the new face of management: take it or leave it: capitalism 2012 style.

What managements want is clear: higher and higher profits, huge salaries for themselves and higher dividends if that will enhance the value of their stock, and incomes. What is also clear: workers may do the work necessary to the corporation, but workers are now fungible, just like money. They can be traded in for cheaper models, just like retiring high interest loans for lower cost ones. There are just so many willing to work, and so few jobs available.

Manufacturing is supposedly reviving in the US. This may be one reason: highly skilled, educated, hard-working (willing to work way more than 40-hour weeks), American workers come cheap, now that unions have been beaten down to the point where they are weak, almost impotent. Strikes are no threat to many corporations: replacement workers, what unions call "scabs," are willing and ready to take the place of strikers, and the authorities will send in the police, armed, armored and dangerous to insure the safety of replacement workers and corporate property. Strikers are no match for them.

There are few political representatives, in this supposed democracy, to stand up for workers' rights. The Occupy movement represents the helplessness many feel in the face of corporate aggression and no countervailing force. What do we get instead? Obama will now take a more populist tone, will pledge to reinvigorate "the middle class," (no one speaks of "workers") and Romney, Gingrich, et al, clearly represent corporate interests and people like themselves with high incomes--Romney's unearned income came to over $20 million in each of the last two years!

This does look like the takeover of a class very like the fifth century's Roman Senators, with inequality growing, not receding. It's a prescription for stagnation and decline--just like the late Roman Empire.

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