July 2024

S M T W T F S
 12 3456
78910111213
14151617181920
21222324252627
28293031   

Style Credit

Expand Cut Tags

No cut tags

July 25th, 2005

ritaxis: (red mars)
Monday, July 25th, 2005 09:10 am
Two articles in The Daily KOS a day apart illustrate some things I've been on aboput for years. First up, yesterday's discussion of the some hatchet job Wall Street analysts have been attempting to pull on Costco . This is going to be long, so I'm going to split it into two parts. Class war, and the best defense.

Some background: Costco, for folks who live elsewhere, is a giant warehouse chain. I mean a chain of giant warehouses. They are ostensibly suppliers to small businesses, and that may be, as far as I know, a major or even the major part of their business. It's growing concern: their profits are good, their shares rose 10% while Wal-Mart's went down 5%.

I've always been fonder of Costco than other big stores because when they built here they played fair. To make a long story short, the City had a lot of environmental and traffic abatement concessions they wanted, and Costco hung in there and worked out a deal that not only prserved but restored a little bit of wild land, and did the stupid traffic things (well, I think they turned out to be stupid things, but traffic is desperate where they are, and you can't blame them for trying, or you can, but that's silly). The development-at-any-cost factions predicted we'd lose the store to neighboring towns who don't make such demands. Now Costco is a major employer here.

And this is where the implacable class war comes in. Costco has decent wages and benefits. It treats workers with respect. Its prices are lower than many similar places which pay their employees less and cover less of their benefits. So there are some Wall Street analysts who are trying to scare off investors on these grounds. They say that shareholders are getting cheated because Costco pays its employees decently. They are recommending that investors buy Wal-Mart stocks more than twice as often as they recommend that they buy COstco stock, even though COstco has been performing better than Wal-Mart.

Why would they do this? Recommend to their constituency to avoid a more profitable stock? Whenever that happens, you know there is a bigger purpose. I'm not talking about conspiracy necessarily here, though I wouldn't rule out strategy discusions over lunch. But these Wall Street guys are engaged in class war. They want Costco to go down, because Jim Sinegal (CEO) and the rest of the bosses at Costco are not doing their part in the class war. They're traitors to their class. Wal-Mart, with its secondary boycott of unions (they refuse to buy goods made by union labor: you do know that the secondary boycott is illegal for working people, right? But it's legal for Wal-Mart and Ross), its outrageous employment practices, its depressing effect on local economies, is taking effective offensive action against the working class. Therefore, these guys want to support Wal-Mart. It's that simple.
ritaxis: (hazy mars)
Monday, July 25th, 2005 09:58 am
So actually I discovered this first thing this morning on the front page of the paper. Odd, because the Sentinel doesn't usually feature even the biggest union news unless it's dead local -- berry fields, county government, the University workers. And not even then: all school year the teacher's union was a hair away from a strike and working strictly to contract and the Sentinel only covered it on a minimal basis, and misleadingly.

Well, the point is -- the AFL-CIO has split. The unions making a bolt are growing while most of the AFL-CIO is stagnating or declining. And why are these unions growing? Because they have taken a strong initiative for organizing the unorganized. Because instead of fighting a rear-guard battle to retain benefits for the old-timers, they've gone out and fought new struggles to organize workers that slipped through the cracks in the big organizing drives of the thirties, or whose jobs didn't exist in those days.

The "Change to Win" (sometimes calling itself "Unite to Win")coalition contains seven unions so far (of which only two have left the AFL-CIO so far, and another two are planning to stay away from the big meeting this summer). They are:
Service Employees International Union, who seem to be leading
Teamsters International Union, who have by the way long since mended fences with --
The United Farm Workers who just joined the coalition
The United Food and Commercial Workers
UNITE HERE which is the merger of the needletrades and the hotel and restaurant workers unions
Laborers International Union
Carpenters Union

Those last two are surprising, because the building trades unions have generally till now acted like guilds, jealously guarding their privileges and limiting their membership. I guess the combined pressure of new building technologies and the loss in all respects (wages, jobs, status, working conditions -- including bad laws) has radicalised these two unions at least. I'm also surprised that AFSCME is not on the list, and a couple of others, but mostly AFSCME.

I've already written about how the owning class has been waging class war and attempting to punish employers who break ranks. (there's a long bitter story about United Airlines I may tell another time) It's long past time that working people acknowledge what they used to know: there is a class war, and there is no way to make peace with the owning class except from a position of strength, vigilance, organization, and willingness to take to battle, and to take to offensive battle. The enemy is not confined to the extreme right wing, though they are the vanguard and frequently they most honest about it -- you know how Bush is caught on film saying that "his people" are the "haves and the have mores?" And he speaks of the "ownership society" -- which means "them that owns, rules."

And why is the splitting of the AFL-CIO good news? Wouldn't it be better to stay in a larger organization, with more clout? Clout's only clout if you clout people with it. Who wins -- a big, passive force who apologizes for their existence, or a small, organized, active force that keeps fighting and makes no apologies?

Anyway, historically, when workers' organizations split, they grow, and grow fiercer, and then, they recoalesce as a stronger, more focussed entity. Sometimes.