Bosses find new ways to bust unions

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Local 1100 Retail Clerks demand that Macy's and Emporium negotiate in good faith and stop take-aways during June 13 rally and picketline.

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4 SOCIALIST ACTION JULY 1987 Attacks upon the standard of living American workers are taking place in several ways-some of them new.

Large corporate interests are consciously attempting to lower wage rates and reduce benefits won by union struggles in the period since the end of World War II. Entire industries have been relocated from the better-paid unionized parts of the country to lower-paid non-union areas in the United States and abroad.

It is unnecessary to list here the large number of instances where corporate demands for concessions from the workers have been agreed to by top union misleaders.

In recent years, corporations have had some success in imposing speed-up procedures, breaking down job classifications, and instituting a two-tier wage structure—in which newer workers receive lower wages. than workers with more seniority.

Corporate mergers

The corporations have resorted to other means to lower their labor costs that are more subtle-and even secretive. These means include the corporate merger or buyout of one corporate giant by another. When such an event is consummated, it almost always results in lay-offs of workers and reductions of income for those remaining on the job.

Some companies raise capital for a takeover by issuing "junk bonds." This is a way of borrowing that obligates the acquiring company to pay interest on bonds and eventually to pay off the bond debt itself. The amounts of money involved in such transactions can run into billions of dollars.

In the meantime, a company that has just swallowed another looks around for ways in which to reduce its interest expense. It sometimes sells off some newly gained assets to do so. This is usually accompanied by lay-offs of workers no longer needed.

A corporate takeover is also frequently an excuse for the company to declare that it is no longer bound by a union contract where there is one—thus leaving workers without protection.

Unions have been organizing to fight this kind of attack and some have gone to court to try to defend themselves. But to Name Address City State Zip Tel. rely on courts and reactionary judges to take a stand in favor of workers is a dubious proposition, takes years to settle one way or another, and reduces the union movement to the position of a supplicant without independent power.

To protect itself and the right to a job, unions will have to develop a fighting stance against the never-satisfied greed of corporate interests.

Companies file bankruptcy

One other way that the corporations avoid their obligations under contract with unions is the filing of bankruptcy applications. Chapter 11, under the laws, permits a company to continue operations —but ostensibly under the court's jurisdiction. This works out to the corporation's advantage, as its status allows it to abrogate union contracts or to wear out unions with endless negotiations.

At this writing, several very large corporations are operating under Chapter 11 provisions, including LTV, the second largest steel manufacturer in the country.

Writing in the Los Angeles Times on May 30, 1987, Harry Bernstein says, "In a move that made him a nationwide symbol of union-busting, Continental [Airlines] Chairman Frank Lorenzo abrogated union contracts by reorganizing the company under Chapter 11 of federal bankruptcy law. He laid off 75 percent of his employees and slashed the wages and benefits of those still on the payroll by about 50 percent."

Bernstein, who is the Times' labor expert, goes on to describe how other airlines have succeeded in cutting down the wages and benefits of their workers. Among other things, he mentions that the courts rejected a union request for arbitration and that "golden parachutes" were negotiated by airlines officers to cushion their retirement.

In one example, Bernstein says, "PSA Chairman Paul C. Barkley has about $600,000 of stock options and will also get $783,000 if he is put out of work by the merger." This refers to a proposed merger of PSA with USair.

Corporate plunderers

In another example of high-level plundering reported in the news, Chrysler President Lee J. Iacocca "earned" in the neighborhood of $20 million last year. This staggering amount included salary, 12 months for $6. 6 months for $3.

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By taking such huge sums of money out of what is presumably available, less is left to be paid to ordinary workers. If a corporate head is worth $20 million a year, how much should a worker on the assembly line be paid?

If we assume that a Chrysler worker gets wages of about $30,000 a year (gross amount before deductions), the company's president is paid 700 times as much. Unions should demand that the company justify this ratio by opening its accounting books for workers' examination.

Still another method used by corporation NO UNFAIR pension funds to finance takeovers. This money is actually owned by workers and is being held for them until they retire.

But in cases where they can get their hands on it, corporate interests try to use it for takeover schemes. Some such incidents are also being contested in the courts but as in other lawsuits the odds are against workers and favor companies.

Open the books!

The demand to "open the corporate books" for the workers' inspection is legitimate and necessary and should be fought for. Workers should urge their unions to take up this demand to compel the corporations to try to justify such outrageous plundering of their assets as is now taking place.

This is one way to take a step to protect the rights of workers-including the right to a job. Eventually, as more business "secrets" come to light, working people will begin to see that they can run industry more efficiently and more equitably without the capitalist class.

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UNITED Joe Ryan/Socialist Actior