The Great Debate

Michigan Governor Rick Snyder’s decision to sign a right-to-work law is just the latest battle in Midwestern Republican legislators’ convulsive campaign to eviscerate union political clout. Lansing, Michigan, now follows Madison, Wisconsin, Columbus, Ohio, and Indianapolis, Indiana, as a state capital flooded by union partisans — in a spirited, but vain, effort to forestall these laws.

Unions stand at the core of the Democratic coalition today. They are the last organizations remaining on the liberal side that can effectively appeal to white, working-class men in the Rust Belt swing states. They were crucial to President Barack Obama’s victory there.

So whatever the opposition and the shady legislative tactics, Snyder, his billionaire backers and the rest of the Michigan GOP made the cold political calculation: Break unions’ political power now by stripping them of the ability to raise the funds needed to hire staff, mobilize voters and keep up liberal pressure on state and local officials in the months after the election. Even as Citizens United allows many conservatives to raise unlimited funds, Democratic Party prospects are likely to plummet — turning Michigan as steadily red as Texas.

But there is a lot more going on here than partisan politics. Obama was not quite right when he told a Michigan factory audience on Monday that right-to-work laws have little to do with economics and “everything to do with politics.”

Partisan wrangling, even over hot button issues like voter ID laws, has never been enough to generate the passions that compelled tens of thousands of rank-and-file union members to surge into Madison, Lansing and other Midwest state capitals where Republican legislatures were poised to pass these laws. Our highly charged politics also can’t explain conservative politicians’ determination to use unorthodox, perhaps even unconstitutional, tactics to rush these laws through.

– Robert J. Dewar is a former Ford Motor Company general foreman and author of A Savage Factory: An Eyewitness Account of the Auto Industry’s Self-Destruction. He currently lives in Cincinnati, OH and runs a successful packaging business with his wife and family. The views expressed are his own. –

The war in the auto plants never ended. It flared up and died down, but it never ceased. Management and labor circle each other like sumo wrestlers searching for an opening. Like any war, it ignores honesty, human dignity and common sense. Like any conflict, it leaves collateral damage.

As a supervisor at Ford Motor Company’s largest transmission plant, I fought on the front lines. Despite leaving the auto company many years ago, the factory skirmishes were a key factor in the industry’s disastrous decline in the 1980s, and likely continue to play a part in the failures of the industry today.

– Peter Morici, a professor at the University of Maryland School of Business and former Chief Economist at the U.S. International Trade Commission, testified before the Senate Banking Committee on the proposed bailout for the domestic auto industry. The following is his written testimony to the committee. The opinions expressed are his own. —

The domestic automobile industry has two major components—the Detroit Three and the Japanese, Asian and European transplants that also assemble and source components in the United States and Canada. Both contribute importantly to the vitality of our national economy. Ensuring these companies have the means to compete globally is vitally important.

The gradual erosion of the market shares of the Detroit Three over the last several decades stems from higher labor costs—having origins in wages, benefits and work rules–poor management decisions, and less than fully supportive government policies. Although the U.S. government has been sympathetic to the needs of the industry, the industry has fallen victim to currency manipulation and other forms of protectionism in Japan, Korea, India, and China.

Congress is taking a hard look at Detroit's autos these days. But what about Detroit's jets?

When the chief executives of Ford and General Motors flew in to Washington yesterday to ask Congress for a $25 billion lifeline, they didn't fly coach.

General Motors CEO Rick Wagoner arrived on his company's cushy Gulfstream IV, ABC News reported. Ford CEO Alan Mulally flew in on a private company jet as well.