Category: Action
Phillip Bonosky Presente! (1916-2013)
| March 9, 2013 | 10:50 pm | Action | Comments closed

By Daniel Rosenberg

The writer Phillip Bonosky, a member of the Communist Party since 1938, died on Saturday (March 2, 2013) in Brooklyn, New York. He was 96. Known for his labor novels Burning Valley and The Magic Fern, Bonosky distinguished himself as one of the first U.S. journalists to visit socialist China and one of the few to interview Vietnamese revolutionary leader Ho Chi Minh. He also was one of the handful to witness the removal of the notorious Khmer Rouge in Cambodia and the destabilization of Afghanistan prior to the rise of the Taliban.

He epitomized the labor and Communist activists from the 1930s. He also exemplified a certain type of writer of that period, one with roots in labor and union struggles. In his writing style, Bonosky assimilated several dimensions. Raised in the Catholic Church in Western Pennsylvania as the son of devout immigrants, he grasped the religious traditions helping to influence and shape the contours of labor movements. He honestly portrayed negative and positive influences therein. Knowledge of corporate domination of peoples’ lives in small industrial towns, and familiarity with how workers actually produced, energized his insights in print.

Bonosky came from the steel-producing town of Duquesne, Pennsylvania. An altar boy, he grew up hearing stories from the survivors of the famous 1892 strike in nearby Homestead, where his family attended church, and the labor walkout of 1919, a valiant attempt to organize steelworkers industry-wide (which was headed by future Communist Party Chairman William Z. Foster, to whom Bonosky would draw close). Like his father and brothers, Bonosky worked in Duquesne and Pittsburgh mills. Before being blacklisted from employment due to his Communist Party affiliation, he belonged to Local 1256 of the United Steelworkers.

At his best in fiction-writing, his work covered the social and class ramifications of family life, high school basketball, homelessness, chronic illness, and communities. He could write with grace, but took all his subject matter personally. He wrote to enlighten, provoke, and inflame. In fiction and non-fiction, there was no secret as to where he stood. He counseled new and young writers to directly confront the challenges of writing: to work hard at it; to write regularly, if not daily; to get to the point; to avoid jargon; to acknowledge the pitfalls of “writer’s block,” but at least to get out a paragraph before surrendering to it.

He developed a love for writing at an early age. He was among the most frequent visitors to the Duquesne Public Library as a teenager. He was likely one of the most disciplined and prolific diarists who ever lived; he documented his life nearly everyday for 75 years, a legacy that fills two large file cabinets in his daughter’s attic.

Sustained by a literary acumen, Bonosky came to New York in the late 40s, convinced that he could make his most important contributions to the causes he espoused through writing. His first short stories appeared in noted magazines of the 1940s, such as Collier’s and Story Magazine. He produced his first books in 1953: the steel town novel Burning Valley (reissued by University of Illinois in 1997) and Brother Bill McKie, about an Auto Workers leader.

He held writing workshops at the Communist Party’s Jefferson School and in a Harlem workshop. He contributed to the literary journal Masses & Mainstream, along with screenwriter John Howard Lawson, novelist Meridel LeSeuer, singer-activist Paul Robeson, and historian Herbert Aptheker, in the 1950s. His long friendship with leftwing painter Alice Neel is detailed in Phoebe Hoban’s Alice Neel: The Art of Not Sitting Pretty and in Andrew Neel’s acclaimed documentary of the artist. His second novel, The Magic Fern, appeared in 1960, followed by Dragon Pink on Old White, about Chinese culture. The Magic Fern provided readers with a close-up portrait of Communists in the labor movement at the end of the Cold War. The blacklisted Bonosky was well familiar with anti-Communism as a labor organizer and FBI target (demonstrated in a host of newly released documents), and as the brother of Toni Nuss, stigmatized in the sensationalist press as the “Red Queen of Pittsburgh.”

In the Great Depression, Bonosky “rode the rails” looking for work and eventually landed in Washington, D.C., living in a warehouse for the homeless under the auspices of the Transient Bureau, where his social worker was Ann Terry White. White’s husband was Treasury Department official Harry Dexter White, later hounded to death by anti-Communists during the Cold War. Through assistance from the Whites, odd jobs, and a monthly payment of $20 from the National Youth Administration, Bonosky took some courses at Wilson Teachers College. He was hired by the Works Progress Administration’s (WPA) Federal Writer’s Project help write the Guide to Washington D.C.

In his WPA years, Bonosky served as President of the Washington D.C. section of the Workers Alliance, chief advocate for the government to meet the needs of the unemployed in finding jobs, and acquiring housing, food, and health care. He led a delegation to meet with Eleanor Roosevelt in 1940, widely reported in the local press. A well-known activist in the city, he spoke at demonstrations and testified before Congress. During World War II, Bonosky became a fulltime organizer for the Communist Party in the Pittsburgh area, including in the steel town of McKeesport. He was part of the Party leadership in the Western Pennsylvania district. Bonosky belonged to the board of the journal Political Affairs for many years. Of late, he had lost his sight to macular degeneration. Until his death, he continued to apply his words and mind to the solution of profound human dilemmas, from exploitation to war to inequality. His wife Faith Bonosky and son Daniel Bonosky predeceased him. He is survived by his daughter Nora Bonosky and her husband Daniel Rosenberg; three grandchildren, Celina Rosenberg, Gabriel Rosenberg, and Alex Bonosky; and a great-grandson, Sebastian Bonosky. A memorial will be held later this Spring. Examples of his work may be found at www.phillipbonosky.com.

International working women’s day declaration by the WFTU
| March 7, 2013 | 9:48 pm | Action | Comments closed

On the occasion of the annual International
Working Women’s Day, the Secretariat of the
WFTU wants to take the opportunity to once
more highlight an issue that seriously concerns
the contemporary working women and the
young couples, a social issue that reveals
in all its extent the rottenness of the policies
implemented in the capitalist world: The
violation of the rights of maternity protection
for the women of the working class. A right
that must be defended by both the female
and male workers in their struggle against
the exploitation of human by human though
the class-oriented trade union organizations.
Maternity protection is not only the legislation
referring to the pre and postnatal period of a woman.
For the WFTU, the issue of maternity protection
conserns the general system of healthcare, from
the early ages till the old age; the health and safety
conditions in the working places; the educational
system from the kindergarten until the university;
the prices of food supplies and daily essentials;
the quality and cost of housing; the high rate of
unemployment. It even has to do with the imperialist
wars, the catastrophe that they cause in households and families, the impact of the use of nuclear
weapons to people’s health causing teratogenesis.
The woman who is allocated from nature with a
special and increased role in the reproductive
process – motherhood – needs special care and
protection. This care and protection needs to be
supplied to all women for free and exclusively from
the state services in the Public Healthcare System.
There is a need for special care for women from
their early years of age until their old age, there
is a need for special arrangements for women in
the working place during their reproductive years.
In the contemporary society which is based
in the exploitation of men and women by the
capital, maternity and labour are in conflict.
The need of the working class to protect
its reproductive process and the well-being
of its descendants lead us directly to see
that capitalism cannot deliver; it is an
obstacle to all the contemporary needs of
the working people and the poor people.
One the on hand, capitalism pushed women
massively in the production using them as the
cheapest labour force, with less rights than
the men. During the latest decades, with the
struggle of the workers movement, women
managed to gain a type of “equality” in the
exploitation and they managed to have some
special rights such as the early retirement age.
Today, especially in a period of a deep capitalist
crisis, the living conditions of the vast majority
are getting worse. Women are either working
overtime or working part time or are unemployed in
big numbers. The “flexible” working conditions are
dominant opposed to stable work. Their working
hours are completely defined by the needs of the
capitalists according to their needs for profits.
The possibility of pregnancy and motherhood
prevents women from getting employment.
The dismissals, the flexible working hours and
the overtime, the night shifts… In general the
intensification and super-exploitation of women
increase the precariousness, the anxiety of women
affecting their physical or psychological health.
Their working conditions and the low wages,
the poverty, the uncertainty of the future, the
precariousness become basic criteria of a family in
its decision to postpone maternity. These are main
reasons why abortions rise in many countries. We
need to fight for every woman and each couple to be
able to choose freely their own future and we need
to fight that there will be a free and public healthcare
system able to support their decision. But we need
also, to fight hard and confront the real social
reasons that lead a woman/couple to abortion.
In the workplaces, the scientific and technological
achievements for the health and safety are not
implemented because of their extra cost creating
serious risk factors in the work places. From lifting
weight to inhaling bacteria and fungus, many of those
factors create problems in conceiving, miscarriages,
problems in the baby’s normal development.
The scientific achievements in this area, in helping women conceive, are not provided as a social
service but as a way for capitalists owning hospitals
and healthcare facilities to make profits. The
public health care facilities around the world are
undermined and function with private-economic
criteria. The admitted persons have to pay for the
services that are being provided to them. Many
times these services are much less than expected.
But even after the natal, the family has to
undertake a series of everyday activities that have
to do with the reproduction of the labour force. The
house of a poor family is at the same time a small
restaurant, a laundry, a kinder-garden, an old-age
home and so much more. These are all activities
that usually women are undertaking in their
free time, working for free for the whole society.
In most countries not even the ILO Conventions
that define that maternity leave should be 14
weeks after and at no less than one week before
the natal are respected. ILO Conventions also
state that women should be entitled to the twothirds of the previous earnings for these 14 weeks.
“Out of the 167 countries, 97 per cent provide cash benefits
for women during maternity leave and 42 per cent provide
at least two-thirds of previous earnings for 14 weeks. What
is more important is how countries finance cash benefits
during maternity leave. We noticed a shift away from the
systems relying entirely on employer responsibility. By 2009,
half of the countries financed benefits solely through their
social security systems or public funds in order to relieve
employers. A share of 17 per cent relied on a mix of payments
by employers and social security, while in one-fourth (26
per cent) of the countries payment is still covered entirely
by the employer with no public or social security support.
We found out that paternity leave provisions are becoming
increasingly common around the world, with at least 49
countries providing paternity or parental leave policies
that fathers can use around the birth of their child.
In some countries, women in agriculture, domestic
work or part-time work are still explicitly excluded
from legal coverage and cash maternity benefits.
In at least 54 countries, domestic workers are covered
by maternity leave legislation, including Guatemala,
which has recently extended social security services to
these workers, such as maternal and infant health care.”
Our maternity protection demands have to
refer to all these fields of the life of the society.
• Adequate pre and post-natal paid maternity
leave. Banning of the dismissals of pregnant
women. Parental leave with full healthcare and
insurance. Banning of night-shifts and hazardous
work for the women before and after giving birth.
• Decisive confronting of the unemployment rates
through a development path that make use of
the natural wealth-producing resources, the land
and the industries to satisfy the needs of the
peoples and not the profiting of the monopolies.
• Free, public and qualitative Healthcare System
that will take care of all the people of all the ages
in any of their needs; vaccinations, regular HIV
tests, proper medication for all the occasions.
• Free, public and qualitative Education
System from the kindergarten to the university.
An educational process that would make
sure that people receive general knowledge
and specialized education, to grow up and
become an integrated personality utilizing fully
its capabilities for the benefit of the society.
• Full-time, Stable job with dignified salaries.
7hours a day, 5 days a week, 35 hours a week.
• Real and sufficient house subsidy or loans
without interest for the young couples.
• A network of real free, public and qualitative
services that will assist the family, the child, the
elderly, the people with special needs, in order for
the life of the woman to be improved. Free, public
and qualitative kindergartens, old-homes, vacationfacilities, restaurants at the working places.
The right to maternity protection for the women
of the working class is not only a matter of
struggle of the working women but the entire
working class. Men and women workers must
jointly struggle against inequality, gender
discrimination and maternity protection.
THE SECRETARIATWORLD FEDERATION OF TRADE UNIONS
MARCH 2013
40, Zan Moreas str, 117 45 Athens, GREECE
Tel: +30210 9214417, +30210 9236700, Fax: +30210 9214517
E-mails: info@wftucentral.org, international@wftucentral.org
Website: www.wftucentral.org

Statement of the PCMLV on the death of Commandante Chavez
| March 7, 2013 | 9:44 pm | Action | Comments closed

Tuesday, March 5, 2013

The Marxist-Leninist Communist Party of Venezuela, PCMLV, expresses its grief and solidarity at the physical loss of Commandante President Hugo Chavez Frias to all the workers, peasants, students, women’s organizations, revolutionary, anti-imperialist, socialist and Bolivarian parties and organizations of the masses.

We also express our condolences to all his family, friends and to the national government for the loss of a great humanist, a patriotic, progressive and consistent revolutionary statesman, as President Hugo Chavez proved to be until the last days of his existence.

We call on the working class, which knows how to rise to the challenge in the revolutionary struggle in the most pressing moments of history, to prepare to resist and defeat the reactionaries who will not hesitate to take advantage of this difficult time to thwart through violent means the gains and demands that we have achieved under the leadership of President Chavez. Imperialism will set stronger traps at this sorrowful moment that the national revolutionary movement is going through.

The call is to not renounce the struggle to build socialism, the banner that President Hugo Chavez raised in all circumstances; this banner needs to be taken up rigorously and courageously by all the workers of this nation in this difficult moment in history. We, as Party of the working class in Venezuela, make the call for the struggle and building of socialism and communism from the scientific conception of Marxism-Leninism.

The acts of sabotage, of hired killers, the terrorism, food shortages, the propaganda of disinformation, anxiety and manipulation will intensify. The national and international reactionaries feel victorious at this time, but the national and world working class will go forward with the necessary and strategic battles to continue the path of victory and the accumulation of forces to confront the fascists and imperialists.

The death of the President of the Republic must not mean the decline in popular organization, but rather it must serve as an impetus for future struggles against the class enemy. We must not believe in the phony condolences local right wing, which on dozens of occasions tried to assassinate the commandante. These sectors are moved by a single impulse: profit at any cost whatever.

The right wing is evaluating what actions to take in the coming days. It is no coincidence that the Venezuelan government expelled two U.S. military attaches for conspiratorial work.

We strongly call on all the revolutionary elements to close ranks against the capitalist and imperialist enemy. The working class must be prepared for a possible difficult situation; it must not trust the bourgeois enemy that has historically proven to be traitorous. If the pro-imperialist bourgeoisie tries to take advantage of this hard time of grief of the humble and exploited masses, the masses should respond forcefully and applying revolutionary violence.

Socialism can only be built with the worker-peasant alliance in Power and the people in arms!

PCMLV

Caracas, March 5, 2013.

Farewell, Comandante!
| March 7, 2013 | 9:40 pm | Action, Cuba, Hugo Chavez, political struggle, Venezuela | Comments closed

Written by Government of Cuba
Statement of the Revolutionary Government:

It was with profound and searing grief that our people and the Revolutionary Government learned about the decease of President Hugo Chávez Frías and are therefore preparing to pay a heartfelt and patriotic tribute to him, for he will go down in history as a Hero of Our America. We convey our sincere condolences to his parents, brothers, daughters and son as well as all of his relatives, whom we feel are already ours, for Chávez is also a son of Cuba, Latin America, the Caribbean and the whole world.

In this moment of profound sorrow, we share our deepest feelings of solidarity with the brother people of Venezuela, whom we will continue to accompany under any circumstances.

The Bolivarian Revolution will be able to count on our resolute and unrestricted support at these difficult moments.

We reiterate our support, encouragement and confidence in victory to our comrades of the Bolivarian political and military leadership and the Venezuelan Government.

President Chávez has been waging an extraordinary battle throughout his young and fruitful life. We will always remember him as a patriotic military to the service of Venezuela and the Bigger Homeland; as an honest, clear-sighted, audacious and courageous revolutionary fighter; as a leader and supreme commander in whom Bolivar reincarnated in order to conclude what he had left unfinished; as the founder of the Bolivarian Alliance for the Peoples of Our America and the Community of Latin America and Caribbean States.

His heroic and indefatigable struggle against death is an insuperable example of firmness. The admirable commitment shown by his doctors and nurses have been a feat of humanism and dedication.

The return of the President to his beloved Venezuelan homeland changed the course of history. “We have a homeland,” he exclaimed, filled with emotion, on December 8 last, and he returned to his homeland to confront the biggest risks imposed by his disease. Nothing and no one could ever take away from the Venezuelan people the homeland that they have recovered.

The work of Chávez emerges undefeated before our eyes. The achievements attained by the revolutionary people who saved him from the coup orchestrated on April of 2002, who have followed him without hesitations, are already irreversible.

The Cuban people considers him to be one of its most outstanding sons and has admired, followed and loved him as if he were its own. Chávez is also Cuban! He also suffered our difficulties and problems and did everything he could, with extraordinary generosity, especially during the harshest years of the Special Period. He accompanied Fidel as a true son and forged a very close friendship with Raúl.

He excelled in all the international battles against imperialism, always in defense of the poor, the workers and our peoples. Filled with passion, persuasively, eloquently, ingeniously and excitedly he spoke from the roots of the peoples; he sang our joys and recited our passionate verses with ever-lasting heroism.

The tens of thousands of Cubans who work in Venezuela will pay tribute to him through the fervent accomplishment of the international duty and will continue to accompany, with honor and altruism, the heroic deeds of the Bolivarian people.

Cuba will remain forever loyal to the memory and the legacy of Commander President Chávez and will continue to pursue his ideals in favor of the unity of the revolutionary, integration and independence forces of Our America.

His example will guide us in our future battles.

Ever Onwards to Victory!

March 5, 2013
Permanent Mission of Cuba to the United Nations
www.cubadiplomatica.cu/onu

Whither the Socialist Left? Thinking the “Unthinkable”
| March 7, 2013 | 12:56 pm | Action | Comments closed

By Mark Solomon

Read the full article at:

http://portside.org/2013-03-06/whither-socialist-left-thinking-%E2%80%9Cunthinkable%E2%80%9D

This is a quote from the article:

There are socialist organizations already airing divergent views within their ranks – reflecting positions that overlap with other socialist organizations committed to democratic struggle and socialist education. The Committees of Correspondence for Democracy and Socialism, the Communist Party USA, Democratic Socialists of America and the Freedom Road Socialist Organization have been meeting to explore areas for cooperation in advancing the fight to defend the needs and interests of all working people. With involvement of their members, and with all who honestly wish a unity project to succeed, those organizations could constitute a starting point for other left and socialist groups and individuals to join as equal participants in building an imaginative, revitalized socialist presence.

Looter’s feast: the pillage of the USSR
| March 5, 2013 | 8:48 pm | Action | Comments closed

Looter’s feast

The pillage of the USSR

In 1987 the external debt of the U.S. rose to $246 billion. On the 19 of October 1987, Wall Street crashed! Only a miracle could save the U.S. in dire straits. And the miracle took place, and its saviour was Gorbachev.

Gorbachev, saved the U.S. economy, by ruining that of the USSR.

Would you like to know how?

In January 1987 the restrictions on foreign trade were repealed. These restrictions protected the domestic market of the USSR from collapse. Without them the domestic market of the USSR – with its ridiculously low prices for food and essential consumer goods, in comparison with the foreign markets – could not maintain itself for a single day.

And all of a sudden, companies and individuals were authorised to export overseas foodstuffs, raw materials, electronics equipment, energy, chemical products, just about … everything!

It was as if a powerful hurricane had swept over the vast territory of the USSR. In a moment it sucked outside the country all products of value. Groceries and manufactured objects disappeared from store shelves.

The pillage of the gold reserves

On 21 July 1989 new customs regulations repealed all restrictions on the export of gold and precious stones.

The work of the Soviet customs for the last 70 years was instantly wiped out.

Gold, in quantities up to then unheard of, was thrown onto the internal market, to be bought at an internal price, and then exported overseas.

At the time the newspaper “The Moscow Komsomol” described the jewellery trade thus: “A glittering picture of unrestrained speculation, the sales quota of the State Treasury (Gokhran) for jewellery was allocated over and over … The counters were under assault, the State Treasury was bombed with mail requesting new supplies of gold and precious stones … “.

The newspaper “Izvestia” requested that as a control measure against queues for gold and diamonds: “Be put on the market a formidable quantity of gold such as the State’s gold reserves.”

The newspaper “Soviet culture” called outright for the removal customs barriers for the export of gold.

After some time G. Yavlinsky (responsible for the economy in the government at the time) alarmed the press with a statement about the disappearance of the gold reserves. But it all calmed down rather quickly.

It got worse and worse

That same year individuals exported 500,000 colour televisions and 200,000 washing machines. In 1988 just one single family exported: 392 refrigerators, 72 washing machines, 142 air-conditioning machines… The personnel of one of the thousands of foreign organisations exported: 1,400 irons, 174 fans, 3,500 pieces of soap and 242 kg of washing powder, products that were specifically bought by the State – at the insistence of MPS – with foreign currency supposedly for the use of Soviet citizens.

These data appeared inadvertently in the press at the time. In 1989 alone, at just one of the many customs controls points, individuals exported more than 2 million tons of products that were in short supply in the USSR.

The entire production of the Krasnoyarsk cotton combine was exported. At the time a good bed-sheet cost 5 roubles, a double sheet 8 roubles. The exports of cloth tripled, those of cotton nearly quadrupled, while those of linen multiplied by 7.

These are figures about State exports alone. Private exports surpassed those of the government. Moreover, determining the exact figures of exports was impossible. The same newspaper “Izvestia” wrote at the time: “Our State is one of the few in the world that does not compile customs statistics.”

What is the Balcerowicz miracle about which so many media talk about?

American experts have suggested to Balcerowicz (the organiser and inspirer ideological economic reforms in Poland) to reduce production and normal trade and instead encourage unreservedly small business dealings from hand to hand.

That is to say debase the labouring population and transform it into a “nation of hucksters.” All these downgraded individuals, by the million, flocked into the USSR like grasshoppers and began to export everything they could lay their hands on, from imported furniture to toothpaste, and by the ton.

In the Congress of Deputies there was a terrible scandal and shouting about the lack of toothpaste for the Soviet population. It never occurred to the Representatives of the people to question themselves as to the causes that brought about that glaring penury of toothpaste. They simply decided to buy abroad $60 million worth of toothpaste.

Who got rich with these $60 million?

In France, from where it was imported, the toothpaste tube cost 15 Francs, while in the USSR it sold for a rouble. Of course, in no time, the toothpaste found once again its way abroad. It was sent to Poland in packs of 500 tubes (the original package of the French factory) and again without any restrictions.

It was transported in car boots, entire train compartments, or containers on decks of boats. Just like ants who only leave the skeleton of the body of a dead lion, the “Balcerowicz piranhas” took everything and left the Soviet people with empty store shelves. There was not an article of consumption, from foodstuffs to household appliances that was not exported.

We were left to wonder about how these goods had disappeared, because industry over the years continued to produce at full capacity.

“The Leningrad Pravda» 1992

“In the USSR until 1990-1991, we produced 38 meters of cloth per capita. This represented 75% of the world production of linen cloth, 16% of wool and 13% silk. According to official State figures, only 50% of linen products and 42% of wool products were exported.”

But these figures did not take into account exports by private individuals. Because, like locusts, they exported everything they could buy.

The USSR produced 21.4% of the world production of butter (the Soviet population was 4.88% of the world population). Butter production continued to increase, but because of exports, rationing tickets had to be introduced. In the Soviet Union the production of butter per capita was 26% more than that in Great Britain. This being so, there was no butter in Soviet stores but one could buy it in Britain without any problem. Strange, is it not?

Official statistics regarded as consumed in the USSR all the butter and the meat that were sent to storage warehouses that supplied the grocery stores. For the purchase of butter and meat, passports were not required, consequently products purchased in the USSR, yet exported beyond its borders, were considered as contributing to the well-being of the Soviet people. In fact tons of meat and butter, bypassed the retail stores, and went directly to warehouses abroad by sea in containers, by land (road and rail) and by air.

All the while statistics demonstrated that the insatiable Soviet people had devoured it all.

In the late-80s and early 90s, everything had disappeared. Socks and refrigerators, televisions and plates, sheets and washing machines! The flying grasshopper had devoured it all, the sausages and the fish, the semolina and the sugar. Aluminium pots, soup-bowls and spoons were exported as cheap very valuable material that had gone through the stages that require a lot of energy and polluting treatment. The wood boring insects and exporters eroded the once powerful ship that was the Soviet economy and reduced to dust.

In 1991 it collapsed.

Tatiana Yakovleva 6-07-2012

(French translation YB)

http://south-worker.com/?p=556

Notes from the Brink: March 2013
| March 4, 2013 | 10:49 pm | Action | Comments closed

by Zoltan Zigedy is available at:

http://zzs-blg.blogspot.com/

Notes from the Brink: March 2013

More Workers’ Woes

If it seems like I’m picking on the United Auto Workers union, it’s only because its descent from its once lofty, exemplary stature as one of the most democratic and militant CIO unions has been the steepest. Last month, I wrote of the leadership’s complicity in the gutting of union wage and benefit standards, a gutting that has left starting wages often lower than for their non-union counterparts. I reported that UAW contracts were pressuring management at non-union Toyota to buy out older workers in order to establish a new, lower starting wage to compete with their unionized competitors. UAW union contracts are now the corporate tool for slashing labor costs!

But it’s even worse than I thought. A retired autoworker pointed out that my claim of two-tier employment at UAW shops was incomplete. At Ford, the UAW has acceded to a three-tier system! Below the “entry” level tier, Ford, with UAW agreement, has established a classification of “long term supplemental” that offers the $14-16 entry-level starting wage, but with no job security or benefits! In some suburban, high- income areas, fast food restaurants offer better wages and benefits than this!

Labor Notes Ken Paff reports on a shameful act of treachery against workers employed at a car-hauling company under a Teamster contract. As revealed by a National Labor Relations Board decision, Ford colluded with a UAW local to underbid the Teamster contract and award the work to a lower-paying competitor. The NLRB administrative law judge ordered the voiding of the UAW contract and the re-employment of the laid-off workers with full back pay. According to the decision, Ford arranged the sub-standard contract with the UAW beforehand to secure a lower bid. As a result, the Teamster members who had made about $20 an hour were replaced with workers employed under a UAW contract at $11-14 per hour. According to a leaked document, the collusion would save Ford $9.8 million a year. This sorry deal was known to the top union leadership.

Treachery of this dimension transcends class collaboration and business unionism and sinks to the level of scabbing. Those who gave their lives to organize the UAW must be turning in their graves. Their legacy deserves much better than this insult to labor solidarity.

Currency War

Why is the escalation of the global currency war by the Abe government in Japan significant?

Until now, the leaders of all of the leading capitalist countries have proclaimed open and unrestrained trade—free markets—as a mark of a new level of international cooperation. They have advertised the dramatic growth of international trade as establishing bonds of mutual dependence that strengthen relations and lessen tensions.

But these “interdependencies” were tenuous at best. They temporarily concealed the ever compelled, inevitable drive for competitive advantage, to win at the expense of competitors. Cooperation is alien to a system—capitalism—based upon ever greater accumulation. A deepening crisis quickly surfaced these tendencies.

It was not the Abe government that opened the currency wars, but the US. The doses of “quantitative easing” adopted by the US Federal Reserve cheapened the dollar, making US exports more attractive and foreign imports less so. As a result, there was a marked revival of US manufacturing. In short, US policy makers broke with international cooperation and set out on the road to securing national advantage.

The first to feel the bite from this unilateral policy were many economies in Latin America. Despite the justifiable complaint of their leaders, US investment money flooded these markets, disrupting capital markets, and attacking their exports. Two years ago, Brazil lodged loud complaints against US quantitative easing and its negative impact on Brazilian exports.

Other countries, like the Republic of Korea, Switzerland, and Israel, have acted to protect their currencies, while Australian manufacturing has been seriously slowed because it has refrained from reacting.

The already seriously wounded EU economy has been further disrupted by the currency wars, with the European Central Bank reluctant to retaliate. Germany, with its manufacturing largely immune to price competition, has successfully blocked any strong reaction. The rest of the EU has consequently felt the loss of competitiveness.

It was the Abe government in Japan that brought this escalating contest into the open. Their explicit determination to weaken the yen served as the basis for Abe’s election campaign.

Despite a frantic attempt to get some agreement among the G7 powers, the battle only promises to become more aggressive and destructive. The Brazilian Finance Minister was recently quoted in The Wall Street Journal: “The currency war has become more explicit now because trade conflicts have become sharper. Countries are trying to devalue their currencies because of falling global trade. So many of them are in a difficult situation.”

The tensions emerging in the currency war are leading to sharp military confrontations and threats, especially among Asian Pacific countries. The capitalist sharks are turning on each other.

Here We Go Again!

Signs are eerily pointing toward developments reminiscent of the 2008 crash. Once again an enormous pool of capital is accumulating and overflowing into riskier and riskier areas to find a return. As reported in the WSJ, $149 billion has channeled into money market funds since November of 2012. The Journal notes that these funds are increasingly accepting risk (for example, French bank debt) to secure better returns.

Cash is also flooding equity markets. In only four weeks in the New Year, $38.1 billion was invested in stock mutual funds, more than the previous record in February, 2000 (remember that moment?).

A recent bank of charts published in the WSJ tellingly demonstrates the many signs of an overheated, dangerously speculative economy:

● Issuance of high-yield corporate bonds below investment grade is nearly double what it was in 2007.

● Business loans not required to meet traditional standards have risen sharply (though still well below

2007).

● Total assets in US high-yield, junk bond funds and exchange traded funds are more than double what

they were in 2007.

● Iowa farmland prices are more than double what they were in 2007.

As if there were not enough danger signs in the global economy, another over-accumulation event approaches. Hold on to your hats!

Zoltan Zigedy

zoltanzigedy@gmail.com