'Look for the Union Label' is sung no more

by David Grand
September 12, 2007

That was a catchy tune I remember humming when it appeared on a TV ad many years ago, that was intended to stem the tide of foreign apparel and textiles flooding the marketplace, as more and more manufactures (including mail-order companies) were outsourcing the work overseas for the cheaper labor costs.

But it was a losing battle, and looking for clothing made in the USA in today's market is like tying to find a four-leaf clover in your yard.

As it tuned out, what decimated that industry was the forerunner of things yet to come in other sectors; such as, in consumer-electronics, steel production, etc.

Not surprisingly, manufacturing unions have suffered the most by globalization, what with many companies insisting that American workers are overpaid and their benefit packages too rich, and they're fighting tooth and nail to keep unions at bay, often resorting to the firing and intimidation of union supporters.

In contrast, the service-sector unions are largely immune to globalization--just try to outsource the job of a hamburger flipper, hotel housekeeper, janitor or bedpan-emptier to China.

However, it's in the domestic auto industry where foreign competition has had the greatest impact. The best indicator of that is Toyota having left both the Chrysler and Ford automakers in its dust, and are on the brink of passing GM in sales worldwide.

Charles E. Wilson, former CEO of GM, would roll over in his grave, for his having said in 1953: "For years I've thought what was good for our country was good for General Motors and vice versa." (Too bad he's in no position to eat those words,)

And the human toll its taken is staggering. For example: Delphi, the beleaguered auto parts company has cut its workers $27-an-hour wages in half; GM has laid off 38,000 workers in the last five years; and with Ford in the process of cutting upwards of 30,000 jobs at 14 assembly plants being closed.

No doubt, many have, or will find jobs in the non unionized Japanese plants in the country, of which there's currently 25. Toyota, for instance, offers good wages, benefits and lifetime employment. (I'd thought only Federal employees had that.)

And the invasion of members of the Japan Automobile Manufacturing Association (JAMA) isn't over, what with its members spending an estimated $1.7 billion in the construction of four new U.S. auto and auto parts plants in 2006, raising the total number of Americans employed in their plants, dealership franchises and distributors to about 440,000. They deserve kudos for helping our economy that much.

As JAMA's USA General Director was quoted as saying: "this investment of over $30 billion underscores of our member's commitment to satisfy American consumer demand for high quality products and to integrate our companies into the fabric of America."

And his unspoken message was, that if in order to accomplish that goal we have to pull not only the rug but the very floor out from under Detroit's "Big 3," so be it.

Now, while our nation's automakers may be punch drunk, they could still come out swinging if they got off their high horse and quit fighting against the proposed tougher fuel economy rules pending in Congress.

And if the UAW, in turn, was willing to ease their $100 billion headache--the estimated price tag of the combined liability to provide health care for retirees--they'd soon be in the black not the red in the ledger books. Yes, I believe in miracles, which is what it would take for those two things to happen.