Mass. construction firms attack prevailing wage law

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... banks on thin ice BOSTON-Construction unions here have been put on the defensive as scab contractors seek to repeal the state's prevailing wage law. The law, on the books since 1914, requires that state and local governments pay union-scale wages and health/welfare benefits to workers on all public construction jobs.

The law prevents public money from being used to undercut wages and conditions negotiated by workers. As one union electrician put it, "Both non-union and union contractors are on the same footing for public contracts because they both have to pay these minimum wages."

The Associated Builders and Contractors (ABC), the nation's largest non-union building trades organization, is leading the repeal efforts through its "Fair Wage Committee." This committee includes a number of large corporations outside of construction, including the Kemper and Aetna insurance companies.

The ABC strategy is to challenge the Massachusetts law (Massachusetts is generally considered a stronghold of (continued from page 1: “Palestinian resistance faces new challenge”) thrift business, betting the depositor's money on high-risk ventures and raking off fat up-front fees. ... When the bottom fell out of commercial real estate in the Sun Belt [due to the fall in oil prices], Federal insurers were left with hundreds of insolvent S&Ls and liabilities exceeding the national income of Denmark."

The Federal Home Loan Bank Board, the federal insurance agency, pledged more than $21 billion this year to rescue 114 savingsand-loan institutions. In one deal alone, the costliest rescue of a thrift to date, the bank board committed $2 billion to the American Savings and Loan Association of Stockton, Calif.

One bank analyst, Mark Perkins of Perkins Smith in Tampa, Fla., estimates that a government bailout of bankrupt S&Ls would cost $60 billion now and $200 billion if carried out over 10 years. That is considerably more than the combined national income of several African countries.

Bailout by taxpayers

Where does the bank board get the money to rescue the sick thrifts? It must resort to issuing debt and other obligations to be paid off in the future. The board now holds almost $23 billion in obligations, for which it pays over $2 billion a year in interest.

But most analysts believe that the bank (Partial list)

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Marxism's Lessons for Today by Ann Robertson ($1.00)

To order, and for list of 11 other pamphlets, write to 3435 Army St., Room 308, San Francisco, CA 94110 6 SOCIALIST ACTION construction unions) as a prelude to a full-scale national attack on similar laws in 34 states and a renewed attempt to repeal the national prevailing wage law, known as the Davis-Bacon act.

A "tax-saving" measure?

In a substantial advertising effort, ABC paints this blatant union-busting attack as a tax-saving measure. Stephen Tocco, who chairs the Fair Wage Committee, claims that repeal of the law will save Massachusetts taxpayers $200 million each year. He poses the question as "whether we decide we want to continue to build affordable housing for elderly or homeless or anybody."

Many observers have challenged the $200 million figure. With wages comprising only 15 percent of total construction costs, reduced pay would not save significant amounts. And taxpayers would only realize the savings if the contractors passed it on to the public—which isn't going to happen.

What does ABC really want? It wants to hire cheap, unskilled workers from states with high unemployment (Massachusetts board lacks the resources to handle the thrift-industry institutions that are still ailing-and to pay back its old debts at the same time. As a result, the government will have to step in and pay the bill-out of taxpayers' pockets.

According to Frederick Wolf, a congressional auditor of the Federal Savings and Loan Insurance Corp., a bailout by the taxpayers will go "far beyond anything that the government has ever had to deal with." Add Business Week points out: "Rescuing the depositors of crumbling S&Ls will add billions of dollars to the federal deficit."

"Why make a widget?"

Financial experts are usually quick to point out that another crash like that of last October is highly unlikely given the many "financial tools" available to the government to regulate the economy. These arguments are hardly convincing.

Because of the growing difficulties in finding lucrative returns on investments in the productive sector of the economy, large corporations and banks are increasingly making their loans for speculative and non-productive uses-corporate mergers, leveraged buyouts, and real estate.

"Why invest in making a better widget," asks Harper's Magazine (May 1987), "when funding the takeover of a widget company can make you money so much faster and easier?"

This search for a quick killing, writes Harper's is "what drove the [1987] bull market, further concentrating the nation's wealth and placing yet more money at the service of a speculative fever that grew daily more irrational and dangerous."

Harper's goes on to note that the government, "echoing the pre-1929 fad for corporate combination," has totally abandoned its regulatory function and allowed "corporate mergers and acquisitions to occur with abandon.' Can another crash be averted?

There are many people, including Federal Reserve Chairman Alan Greenspan, who are now calling for a tightening-up of the government's regulatory function. Reversing the Reagan administration's position, Greenspan called for modifying the tax laws to discourage borrowing for corporate takeovers.

The New York Times editorialists call for "banking reforms ... to avoid a major catastrophe."

Will the capitalist politicians have the political will to put these reforms into place? This seems improbable for the has a relatively low unemployment rate); to bid just below the unions for public construction jobs; and, by gouging the wages, take the big difference in profits for themselves.

That's what the real motive is—profit. There's no wording in the referendum that directs the "savings" back to the taxpayers.

And it isn't just lower wages that will help create big profits for these contractors. Union workers can complain about shoddy work and unsafe conditions-something the ABC crews can't do. And the union construction jobs are the only ones with "costly" affirmative-action programs.

The unions strike back Massachusetts labor has struck back at ABC and other corporate robber barons will resort to lies and deceit in order to convince the voters... that workers are worthless and don't deserve a decent quality of life."

The building trades have organized the Quality of Life Committee, and have raised $1 million dollars through assessments and contributions. They've reached out to AFLDon't you ever get nervous sterying in tlese HIGH CRIME cools 7110 4830 moment.

During the presidential election campaign, neither the Republicans nor the Democrats have wanted to confront the crisis of the banks. The Wall Street Journal (Oct. 25, 1988) explained why: "Both Republicans and Democrats know that they can be blamed for allowing the crisis to develop. So they aren't eager to talk about it in the campaign." Moreover, the Journal notes, they have no solution to offer.

But even if the limited regulations and reforms proposed by Greenspan and others were implemented in the near future, they would still be insufficient to avert a major crisis. At best, they can only postpone the day of reckoning.

U.S. Postal Service Ownership, Management and Circulation (Required by 39 U.S.C. 3685).

1A. Tide of publication: Socialist Action. 1B. Publication no. 721090. 2. Date of filing: Oct. 20, 1988 3. Frequency of issue: Monthly. A) No. of issues published amually: 12. B) Annual subscription price: $6.00.

4. Complete mailing address of known office of publication: So cialist Action Publishing Association, 3435 Army St., Suite 308, San Francisco, CA 94110-4543.

5. Complete mailing address of the headquarters of general business offices of the publisher: Socialist Action Publishing Association, 3435 Army St., Suite 308, San Francisco, CA 94110-4543.

6. Full names and complete mailing address of publisher, editor, and managing editor. Publisher: Socialist Action Publishing Association, 3435 Army St., Suite 308, San Francisco, CA 94110-4543. Editor: Alan Benjamin, 3435 Army St., Suite 308, San Francisco, CA 94110-4543. Managing Editor: Kathy Sands, 3435 Army St., Suite 308, San Francisco, CA 94110-4543.

7. Owner (if owned by a corporation, its name and address must be stated and also immediately thereunder the names and addresses of stockholders owning or bolding 1 percent of more of total amount of stock. If not owned by a corporation, the names and addresses of the individual owners must be given. If owned by a partnership or other unincorporated firm, its name and address, as well as that of each individual must be given. If the publication is published by a nonprofit organization, its name and address must be stated.): Socialist Action Publishing Association (unincorporated), 3435 Army St., Suite 308, San Francisco, CA 94110, Nat Weinstein and Carl Finamore, 3435 Army St., Suite 308, Sen Francisco, CA 94110. CIO unions, correctly characterizing the repeal effort as an attack on all labor.

But while their efforts have been positive, they lack one critical component: greater rank-and-file participation.

Most of the union campaign has focused on TV and radio advertising. These ads clearly point out the profit motive and blast the alleged tax-savings, but this type of a response hasn't galvanized the workers themselves.

A recent article in Electrical Workers Local 103's paper made the case for building a mass coalition with "union members outside the building trades, as well as minority, women's, and community organizations."

But such a coalition hasn't been built beyond endorsements. There have been no marches, no rallies, no community organizing.

The fight against repeal is a critical one. In a number of other states, repeal of prevailing wage laws has been followed by the introduction of union-busting "right-towork" laws.

As Arthur Osborn, Massachusetts AFL-CIO president, stated, "This 'for profit' referendum will have a negative impact on all workers, public sector, service employees, and industrial workers—not just building trades. This issue is large corporation vs. communities, not union or non-union. If ABC is successful all workers lose."

Lag.

STOCA EXCHAN The scramble for quick profit—the logic of which is built into the very fabric of capitalist economy—has produced a debt time-bomb that cannot be defused. It keeps ticking away.

Private debt stands today at the staggering figure of $6.7 trillion. And the gross federal debt-the "national" debt" —has more than doubled during the Reagan years to a mind-boggling $2.6 trillion. The recent speculative orgy will only fuel the debt crisis.

The post-October 1987 recovery has been built on borrowed time. No one can predict when it will occur, but it's only a matter of time before the new wave of speculation leads to another collapse.—The Editors 8. Known bondholders, mortgagees, and other security holders owning or holding i percent or more of total amount of bonds, mortgages or other securities (if there are none, so state: None.

9. For completion by nonprofit organizations authorized to mail at special rates (Section 423.12 DMIM only): Does not apply.

10. Extent and nature of circulation. Average no. copies each issue during preceding 12 months. A. Total no. copies printed (net press run): 2,667. B. Paid and/or requested circulation (1) Sales through dealers and carriers, street vendors and counter sales: 1242. (2) Mail subscriptions (Paid and/or requested: 788. C. Total paid and/or requested circulation (sum of 10B1 and 10B2): 2030. D. Free distribution by mail, carrier or other means, samples, complimentary, and other free copies: 46. E. total distribution (Sum of C and D): 2076. F.

Copies not distributed (1) Office use, left over, unaccounted, spoiled after printing: 560. (2) Return from news agents: 31. G. Total (Sum of E, F1, and 2-should equal net press run shown in A): 2,667.

Actual no. copies of single issue published nearest to filing date.

A. Total no. copies printed (net press run): 2,500. B. Paid and/or requested circulation (1) Sales through dealers and carriers, street vendors and counter sales: 1467. (2) Mail subacription (Paid and/or requested): 694. C. Total paid and/or requested circulation (Sum of 10B1 and 10B2): 2161. D. Free distribution by mail, carrier or other means, samples, complimetary, and other free copies: 53. E. Total distribution (Sura of C and D) 2214. F. copies not distributed (1) Office use, left over, unaccouated, spoiled after printing: 286. (2) Return from news agents: O. G. Total (Sum of E, Fl and 2—should equal net press run shown in A): 2,550.

11. I certify that the statements made by me above are correct and complete.

(signed)

Kathy Sands Business Manager

Scan page 7

Chilean youth, like all of Chile's oppressed sectors, sent out a clear message on Oct. 5: "Adios General." They demanded that Pinochet step down now, not in 11 months. Hurricane Joan adds salt to U.S.-inflicted wounds SOCIALIST ACTION NOVEMBER 1988 7 By ADAM WOOD "He's already fallen! Adios General!" These were the cries that rang out in the streets of Chile following a plebiscite on Oct. 5. General Augusto Pinochet, Chile's brutal dictator, had lost his bid for eight more years in power.

Thousands of young people took to the streets, expressing their joy and demanding Pinochet's immediate resignation. Under the terms of the plebiscite, Pinochet is not obligated to call elections until December 1989. The response of the protestors to this provision was expressed by their cry, "One more year—ha! ha! ha!"

On Oct. 7, over 1 million protestors rallied in Santiago demanding that Pinochet step down. Smaller demonstrations around the country were met by tear gas and water cannons.

The majority of Chilean workers, students, and peasants have been swept up by this election victory. The prospect of removing Pinochet, the butcher who engineered the murder of over 10,000 Chileans following the overthrow of Salvador Allende's democratically elected government in 1973, has given new life to the social movements.

A secret weapon The potential exists to mobilize the Chilean workers and peasants for a struggle against the military which could result in the creation of a new society.

Pinochet and the army will need more than water cannons to turn the momentum back. Unfortunately, they may have their secret weapon in the form of the reformist misleadership which dominates the mass The leading force advocating a "no" vote in the Oct. 5 plebiscite was the Command for the No, a coalition of 16 parties. It includes capitalist parties such as the Christian Democrats (the leading force in the coalition) as well as factions of the divided Socialist Party.

Now that the plebiscite has been won, these opposition forces are falling all over themselves to find a "consensus" candidate for the upcoming elections who can be seen as "responsible" by the military. So far, the Christian Democrats have succeeded in uniting five of the opposition parties behind a candidate they will select.

The leading contender is Patricio Aylwin, president of the Christian Democrats. The Command for the No has been renamed the Democratic Command, and it appears likely that the other 16 parties in the coalition will fall in behind the Christian Democrats.

Aylwin is a long-time figure in Chilean politics. The New York Times (Oct. 7, 1988) calls him "a worthy representative of the landed gentry." During the presidency of Salvador Allende, Aylwin was a staunch opponent of the reforms implemented by that government.

In addition, The New York Times reports, "Many Christian Democrats are thought to have privately encouraged the coup [by Pinochet], and their public statements at the time [1973] came close to that." (Oct. 15, 1988)

Aylwin and most of the parties that called for a "no" vote on the plebiscite are now attempting to reassure the army that, in the words of one opposition leader, "This By MICHAEL SCHREIBER Hurricane Joan has devastated Nicaragua. Over 100 people were killed. Close to one-tenth of the population was made homeless.

Inhabited areas on the east coast "practically disappeared from the map," the newspaper El Nuevo Diario said. A Red Cross nurse reported from the city of Bluefields: "There isn't enough left of the houses to make a fire."

Near the capital city of Managua, hundreds of thousands of shanty-dwellers, refugees who had been displaced by the U.S.-backed contra war, found their homes swept into the river valleys.

A large part of the coffee crop and one-third of the banana crop were destroyed by the 125-m.p.h. winds. This comes on top of agricultural losses from rains associated with Hurricane Gilbert in September. Almost half the bean harvest and 7 percent of the corn were lost at that time.

Even before the two storms, the economy was in a shambles. So far this year, the average wage-earner's income has dropped by two-thirds. The price of a pound of beans has risen over 1800 percent. Malnutrition has become common in the poorest areas.

Health officials report a sharp rise in infectious diseases. Meanwhile, 60 percent of the medical doctors in Nicaragua at the time of the revolution have left the country.

These hardships are caused primarily by the contra war. The Nicaraguans have been forced to direct half of the national budget toward defense. In the wake of the hurricane, the government will be hard-pressed to provide the necessary emergency was a defeat for Pinochet and not for the armed forces. Their stated goal is to win over the parties that voted for Pinochet in the plebiscite and to coax the military into calling an early election.

To achieve this goal, the opposition is tailoring every detail of its political platform to suit the military and the capitalists of Chile. Every public statement is accompanied by an assurance that the opposition in power will follow the same economic policies as Pinochet.

The opposition refers to the Chilean economy as "the positive legacy of the dictatorship." Positive for whom?

What this "positive legacy" has really meant in Chile is that, over the last seven years, the top 200 companies increased their profits five times over while real wages fell drastically.

The Christian Democrats and their supporters have also stated that they do not intend to go after the military for crimes committed under Pinochet. They have assured the military that they would only prosecute individuals for specific crimes, if "responsible charges made with foundation" are brought forward.

This piecemeal approach to justice has been called by some Chilean activists "the privatization of human rights."

Over 10,000 people have been murdered under Pinochet, and thousands more have suffered brutality and torture. It will be insufficient to locate individuals in the military who are "responsible" for the government's crimes. The entire ruling class is responsible for 15 years of dictatorship.

Allende's record Salvador Allende's Popular Unity government, which was overthrown by Pinochet, has been held up by representatives of both sides as the radical past no one wants to repeat. They shudder at the thought of the limited nationalizations and land reform implemented by Allende.

Allende's flaw was not the reforms he implemented, services.

The danger remains, moreover, that the contras will try to take advantage of the hurricane damage to further destabilize the economy. During the current period of "ceasefire," the contras have mounted a number of attacks on agricultural cooperatives. In the northern border region alone, over 1000 people were kidnapped between April and September. Twenty-two civilians were killed.

While torrential rains continued to batter the country, a plane from Cuba landed in Managua carrying 35 tons of rice, condensed, milk, beans, and tuna. Later, Canada and several Western European countries also pledged emergency aid.

The U.S. government alone has refused but rather his belief that real reforms could be carried out in a political bloc with the capitalists and the military. This policy held the workers and peasants back from organizing themselves to rule Chile.

The Popular Unity government tried to win over a wing of the capitalist class by cutting back on the scale of nationalizations and promising to uphold private ownership of the distribution of goods. Similarly, the government tried to pacify the international banks by offering full payment of Chile's $2 billion debt.

The Allende regime also made an effort to "gain the confidence" of the military. In November 1972, Allende appointed several generals to his cabinet. Only one day before the coup, the Communist Party, a main component of the government, defended Pinochet's "loyalty" to the constitution!

Meanwhile, the Socialist and Communist party leaderships worked to demobilize workers who tried to counter the bosses' disruption campaign. Peasants who "illegally" occupied the land faced prosecution.

Fight has just begun The workers and peasants need to see that a government existing side by side with the military cannot build a society based on human needs instead of profit. With or without Pinochet, the army belongs to the capitalists, and they know how to use it to maintain their rule.

The capitalists may be forced to make concessions, as under Allende. But for the bosses, this simply represents a holding operation. If the workers are held back from taking the reins of society, the capitalists will bide their time until the right moment. Then they will strike.

Now that the plebiscite has been won, the struggle will be for the workers and peasants to formulate their own demands and remain independent from the Christian Democrats and other capitalist parties.

There will be immense pressure against this orientation. The Socialist Party is committed to a coalition with the capitalist parties, and the Communist Party has indicated its willingness to support the candidate of such a coalition. Workers who decide to take a revolutionary course will have to overcome these reformist obstacles.

The electoral defeat of Pinochet represents a real victory for the majority of Chileans. However, the fight has just begun.

to send any hurricane-relief to Nicaragua. After touring several areas of the country stricken by the storm, President Daniel Ortega pointed out, "The best humanitarian aid the United States could give us would be to stop its terrorist policies against Nicaragua."

A relief effort is being organized in this country by Quest for Peace. Telephone (415) 531-0779.

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