Fanfare for Failure

According to reporting in the Los Angeles Times, Ford will slash 30,000 US jobs and close or scale back operations at 14 of its plants. Ford chairman Bill Ford says this scheme will put the once-revered automaker on track for profitability. Wall Street ate the news whole, bidding up Ford’s stock.

As usual, blue-collar workers will bear the brunt of the cuts. Goodbye to decent wages, benefits, and pensions. In his statement to the press Bill Ford said, “We will be making painful sacrifices to protect Ford’s heritage and secure our future. Going forward, we will be able to deliver more innovative products, better returns for our shareholders, and stability in the communities where we operate.”

Not a word in there about the working men and women of Ford. I guess their well-being isn’t worth consideration. Five or six years from now, when this plan, like all of Ford’s previous realignment plans, fails to turn the company’s fortunes around, you’ll hear Bill Ford or some other lavishly compensated chairman declare that what the company needs is more sacrifice from the blue-collar work force: more wage cuts, more health insurance cost-sharing, more pension concessions. Wall Street will swallow that story, too.

What’s amazing to me about these sad tales from once great American companies is how infrequently the lavishly compensated chairmen admit that much of the fault lies in the executive suite, where mediocre designs are approved and green-lighted, where accounting sleight-of-hand is encouraged, and where executive pay and perks rise even when the company is losing money hand over fist. It’s so much easier to blame the United Auto Workers.

It’s all of a piece, when the puzzle is disassembled and put together again, three decades of legislation and regulation favoring capital over labor; three decades of transferring risk from corporations to individual workers without a corresponding increase in the means to cover that risk; three decades of chasing cheap labor around the globe. It won’t be much longer before the average Ford line worker will be unable to buy the cars and trucks he plays a part in building.

///

Ownership society, no thanks. The Bush Medicare plan is an unmitigated disaster, yet another scandal, yet another example of how Bush and his pals serve their corporate constituents to the detriment of average citizens. Democrats didn’t have the numbers to prevent the GOP-controlled Congress from passing this horribly convoluted and unjust plan, so its failure sits at the feet of the GOP.