8 Sept 2020

Time for a new revolution

Alan Johnstone

What Happened
As the presidential election draws near both contestants make fatuous appeals to America’s near-sainted Founding Fathers and that almost sacred scroll known as the Constitution. History has seen more than its share of distortion. Myths and misconceptions have sprung up that many people now take as fact. However, historical interpretation must be based on evidence, which in many cases is either lacking or contradictory. Myths are powerful because they say things people want to believe. History does matter, which is why people in power put so much energy into controlling it. To talk of elitist power today as something new and forget its roots and actually praise the oppressors as spokesmen for liberty and treat their imposed laws under the constitution as admirable achievements is to forget actual real history and fall victim to ruling class propaganda and ideology. When people are asked the question ‘What is democracy’ many will respond with the example of the American republic, its institutions permitting supreme power to be in the hands of the people. But democracy implies something very much more than the widest possible franchise and equal voting rights. It means that the people should have complete control over the administration of social life. It presupposes at the very outset the ownership by the people of all the means of life. If people do not have control of the production of the social wealth then contrary to popular conviction existing republics no more encapsulates democracy than did monarchies.
Hailed as the birthplace of democracy, the 1787 Philadelphia Convention was nothing short of a coup to ensure a ’revolution of gentlemen, by gentlemen, and for gentlemen’ as one historian described it. The Philadelphia Convention was little more than the the capture of political power by the rich section of colonial society and the Constitution designed to protect private property, to prevent interference with its ownership by the majority of the people. In short, the Constitution was designed to perpetuate the rule of the rich minority. The proceedings of the Convention in Philadelphia were conducted in secret. The general public was not privy to the debates and discussions, as it was for their social betters to decide and determine the new nation’s future.
The ensuing war of independence did not establish a truly democratic government. It did not significantly change the structure of American society but rather, it reinforced the political, economic, and social divisions between classes in the Americas. Despite the pretensions of being ‘enlightened’ – sweeping aside monarchy, aristocracy and the established church – the new republic was never designed to be anything other than an oligarchic state. The Constitution constructed an array of political institutions of checks and balances, motivated by a paranoid fear of populism and suspicion of central government power. Ensuring a suffrage of only white, property-owning men, the new United States of America was controlled by an economic elite possessing considerable wealth. The founders of America held an estimated net worth (in today’s dollars) ranging from $20 million to $500 million. Probably they were all in the top 0.1 percent of the wealth distribution. Much of their wealth (as in the cases of Washington, Jefferson, and Madison) was in the form of slaves. So the political system reflected the interests of property-holding white men such as themselves. Slavery was permitted to flourish for 77 years after the Constitution was ratified and a substantial majority of the population was denied suffrage for over a century. They kept in place a system that was, by any reasonable definition, never a democracy.
It is an inconvenient truth for ‘libertarians’ that the proposals for a minimalist government grew out of the South’s need for human bondage and from the desire of slave-holders to keep the federal government so constricted as to be unable to abolish slavery. That is why many Founding Fathers icons – the likes of Patrick Henry, George Mason, Thomas Jefferson and the later incarnation of James Madison – were slave owners who understood the threat to slavery posed by democratic ideals.
Fifty-five men — landed gentry, ne’er-do-well merchants and prosperous lawyers — defined the government under which Americans live. Extending political power to the people was never on their agenda. The Founding Fathers substituted the abstract principles that ‘all men are created equal’ and that power is derived from ‘the will of the people’ by adopting the practice where ‘the people’, non-property owners, women and, of course, slaves were excluded. Those architects of the Declaration of Independence built a system of government based on the division of power that would guard against any excesses of popular democracy.
As they were not themselves in the majority, the rich feared that the less well-off could vote to take away their property, so arrangements restricting the franchise and indirect election were incorporated into the Constitution to keep power out of the hands of the majority. The president was to be an elected monarch. Having two different chambers of Congress, a Senate and a House of Representatives, placed an obstacle to simple majority rule. There are 435 Representatives and 100 Senators. 51 Senators can block the majority rule. Moreover, Senators were elected for six years instead of the two for which Representatives are elected. The electoral college to elect the president operates intentionally in opposition to majority rule in this same way. In a system of electing the President by mere simple majority, a candidate or party could win by appealing to 51% of the voters. The electoral college serves as a partial safeguard against those who might be able to win the national popular vote.
Those who argue that the Founding Fathers were motivated by high-minded ideals ignore the fact that it was they themselves who repeatedly stated their intention to create a government strong enough to protect the ‘haves’ from the ‘have-nots’. They gave voice to the crassest class prejudices, never hiding their concern was to thwart popular control and resist all tendencies toward class ‘leveling’. Their ‘checks and balances’ were chiefly concerned with restraining the peoples’ power and maintaining their own. The true genius of the Founding Fathers was their promise to all Americans that – if they would support the revolution – then they, their social betters, would agree to create an entirely new social order.
Most of the population consisted of poor freeholders, tenants, and indentured hands (the latter trapped in servitude for many years). In order to survive, a typical family often had to borrow money at high interest rates and was caught in that cycle of rural indebtedness which today is still the common fate of agrarian peoples in many developing and undeveloped countries. It tends to cause a community-oriented culture to arise on farms or in small towns. Their concept of independence was associated with inter-dependence and cooperation, all for the common good. Women worked with men, families traded labor and livestock. In this culture of mutual concern and shared obligation working people took care of one another. They held common standards, completely different from the values of a market-driven, commercial approach to life.
The wealthy class of merchants, lawyers, bankers, and plantation farmers followed a completely different way of life – every person for him or herself. In the capitalist world-view of the wealthy class, the community was merely a system of exchange between producers and consumers, the moneyed and the toilers. The holy of holies for the merchant was the market. Government was to be controlled by elites or ‘social superiors’ who decide what is best for the ‘common’ people. Its role was to protect private ownership and ensure that the market system runs smoothly. This requires that the government use force if necessary to protect private property and the rights of capitalists over workers.
The fourth president, James Madison, warned of the perils of democracy, saying that too much of it would jeopardize the property of the landed aristocracy. ‘In England,’ he observed, ‘if elections were open to all classes of people, the property of the landed proprietors would be insecure.’ Land would be redistributed to the landless, he cautioned. Without the rich exercising monopoly privileges over the commons, the masses would be less dependent on elites like them.
Edmund Randolph, America’s first attorney general, said, ‘Our chief danger arises from the democratic parts of our constitution.’
Alexander Hamilton derided ‘pure democracy.’ At the Constitutional Convention he declared: ’All communities divide themselves into the few and the many. The first are the rich and well born, the other the mass of the people. The people are turbulent and changing; they seldom judge or determine right. Give therefore to the first class a distinct, permanent share in the government.’
James Madison, ‘father’ of the Constitution, wrote in The Federalist Papers 10: ‘Democracies have ever been … incompatible with … the rights of property…[because they threaten] the unequal distribution of property.’
The new Constitution put property rights ahead of human rights. It established a republic in which the courts protected the privileges of the minority. It need not have been that way. Other voices were silenced.
James Cannon, Christopher Marshall, Timothy Matlack, and Thomas Paine (author of The Rights of Man and the only one of these men who is well known) formed a group dedicated to gaining political participation for landless laborers, artisans, tenant farmers and others whom the upper class wished barred from involvement in government. To the radicals, independence looked like a chance to make their ideals into realities so that for the first time those without affluence would finally have influence in government.
A Council of Safety drew up the interim Pennsylvania Constitution. Adopted on September 28, 1776, this document established Pennsylvania’s official title, the ‘Commonwealth of Pennsylvania. It provided for annual parliaments in which neither voting nor holding office would be subject to any property qualification. Politicians would be limited to four terms and judges appointed by the legislature for seven-year terms and removable at any time.
The Pennsylvania Constitution of 1776 excluded all of the characteristics of British rule, replacing the position of governor with an executive council of twelve members who were to be elected directly by the people. It also rejected a bicameral legislature (a legislature with two houses), because it resembled the British Parliament’s House of Lords and House of Commons: ‘Just as there was no need for a representative of a King, for we have none, so could there be no need of senates to represent the House of Lords, for we have not, and hope we never shall have, a hereditary nobility.’
Many wealthy property owners reacted with horror to the Pennsylvania Constitution. They described it as an ‘absurd Constitution,’ ‘a mob government’ where the enfranchisement of the poor would lead to a situation where the ‘rabble…will vote away the Money of those that have Estates.’
Some, such as Thomas Young, did try to push for a provision in the state constitution limiting how much property any one person could own, leading to a redistribution of wealth. In the new and free Pennsylvania, declared teacher and mathematician James Cannon, ‘over-grown rich Men will be improper to be trusted.’
‘An enormous Proportion of Property vested in a few Individuals is dangerous to the Rights, and destructive to the Common Happiness, of Mankind,’ read one proposed passage for the new constitution, ‘and therefore every State hath a Right by its Laws to discourage the Possession of such Property.’
These radical measures, however, were narrowly defeated and removed by the more conservative members of the drafting body.
Similar progressive constitutions were adopted in some other states. Upon the founding of the Vermont Republic in July 1777, a constitution, modelled upon Pennsylvania’s, was adopted that gave all freemen the vote even if they owned no property. Slavery was banned outright, and by a further provision existing male slaves became free at the age of 21 and female slaves at the age of 18. Not only did Vermont’s legislature agree to abolish slavery entirely, it also gave full voting rights to African-American males.
The first article declared that ‘all men are born equally free and independent, and have certain natural, inherent and unalienable rights, amongst which are the enjoying and defending life and liberty; acquiring, possessing and protecting property, and pursuing and obtaining happiness and safety,’ echoing the phrases in the Declaration of Independence. The article went on to declare that because of these principles, ‘no male person, born in this country, or brought from over sea, ought to be holden by law, to serve any person, as a servant, slave or apprentice, after he arrives to the age of twenty-one Years, nor female, in like manner, after she arrives to the age of eighteen years, unless they are bound by their own consent.’
The second article declared that private property ought to be subservient to public use. This established the basic principle of social property prevailing over private individual property in Vermont.
The primary legislative authority was to be exercised by a single assembly with members elected for one term. A twelve-member Supreme Executive Council would administer the government. Judges would be appointed by the legislature for seven-year terms and removable at any time. All approved legislation would take effect only at the next session of the Assembly, so that the people of the state could assess the utility of the new law. The President was to be elected by the Assembly and Council together. The Continental Congress, however, refused to recognize the independence of Vermont or even allow it to be represented.
The revolution of the small farmers and artisans re-surfaced soon after the War of Independence with Shays’ Rebellion and the Whiskey Rebellion. And then the real class nature of the new America was revealed in its stark brutality.
Daniel Shays was from Massachusetts and had joined the Continental Army. When he went home in 1780, he found himself in court for non-payment of debts. He was not alone in being unable to pay off debts, and began organizing for debt relief. In 1786 people joined together and marched on the Worcester courthouse to block the foreclosure of mortgages. Shays’ Rebellion was put down by a mercenary army, paid for by well-to-do citizens.
As described by a historian, ‘the uprising was the climax of a series of events of the 1780s that convinced a powerful group of Americans that the national government needed to be stronger so that it could create uniform economic policies and protect property owners from infringements on their rights by local majorities…These ideas stemmed from the fear that a private liberty, such as the secure enjoyment of property rights, could be threatened by public liberty — unrestrained power in the hands of the people.’
The Whiskey Rebellion of 1791-94 was a response to a federal tax on whiskey that closed down small producers. It was crushed by a militia led in person by two Founding Fathers, President George Washington and Treasury Secretary Alexander Hamilton. Washington later went into the whiskey-distilling business himself and became one of the largest producers in the nation.
What Could Happen
Kentucky, Massachusetts, Pennsylvania, and Virginia formally designate themselves in their state constitutions as ‘commonwealths’ — a traditional term for a community founded for the common good. This is still the aim of the World Socialist Movement — to create a worldwide cooperative commonwealth.
It should be easy enough to set up a genuine popular democracy in the United States. Libertarian municipalism, as advocated by Murray Bookchin, inspired by New England town-hall meetings, proposes to do so by simply establishing sufficient numbers of general assemblies. There are over 16,000 townships in the United States. Could such a style of democracy meet the needs of Americans? The number of school districts in the United States is approximately 13,000. What if each school district had an assembly that debated and voted on local regional and global issues?  Or increasing the sphere of the 3,143 counties of the United States?
The basic building-block can be the community or neighborhood assembly where citizens meet to discuss and vote on the issues of the day. These assemblies elect mandated and recallable delegates who then link up with other assemblies forming a confederated council, a ‘community of communities’.
The difference between this form of delegate democracy and representative democracy is that in a representative democracy decision-making power is given without pre-conditions to representatives who are then free to act on their own initiative. In a delegated democracy the electing body possesses the power; the delegate follows instructions and can be recalled at any time should the electing body feel that their mandate is not being met. Thus power remains with the people.
These self-governing communities, based on principles of direct democracy, would come together across national borders. This will generate a system of multi-tiered levels of organisation – local, regional and global – polycentric society-wide planning with a greater preponderance of decision-making and planning at the local level where the bulk of issues impacting on our lives tend to arise. More localised control, however, does not equate with local communities taking local resources into local ownership. In fact, if anything, the very notion of ‘ownership’ would die out completely. In de facto terms, there would be no ‘ultimate control’ and that term itself would also be rendered meaningless. Universal common ownership of the productive resources of society means that nobody owns them at all. The means of production cannot be monopolised by any one person or group and we will have a genuine global democracy, a co-operative economy, and the dissolution of the nation-state. In ancient Athens citizens governed themselves. That is democracy in action.
We can only present examples of what is possible as there are many variations of models to choose from to best fit requirements. We are not preparing a blueprint but to demonstrate what is practical and pragmatic by adapting and adjusting what we already have. As in the nickname of Missouri, the ‘show me state’, we are attempting to show the possibilities that exist in the flexibility of administrative structures. The Industrial Workers of the World, for instance, bases its future administration on industrial unionism, a democracy which concentrates upon workplaces rather than geographic constituencies. Other parts of the world possess their own possibilities such as parish councils in England, panchayats in India. In Mexico, there are the municipal authorities but in the more remote indigenous communities remote far from the formal seat of formal government there are ‘presidentes auxiliares’, directly elected by local voters without political party participation, responsible for agrarian issues, such as the communal land.
’We have our forms of organizing ourselves that are deeply rooted, and what the law says on paper is one thing, but here everything has to go through the assembly, and we will continue living this way because it has worked well for us,’ explained a commissioner of communal resources in a Zapotec community. The land in these towns and villages is communal; it belongs to everyone. There is no private property, not even small plots are sold. The transference of land is done through a transfer of land rights. A father can transfer his land to his children, for example. Everything must go through the assembly. No one can sell the land and no one can buy it.
On the other hand, leaving the decision-making process to a system of elected committees could be seen as going against the principle of fully participatory democracy. If socialism is going to maintain the practice of inclusive decision making which does not put big decisions in the hands of small groups but without generating a crisis of choice, then a solution is required, and it seems that the computer industry may have produced one in the form of ‘collaborative filtering’ (CF) software.
This technology is currently used on the internet where people are faced with a super-abundance of products and services, CF helps consumers choose what to buy and navigate the huge numbers of options. It starts off by collecting data on an individual’s preferences, extrapolates patterns from this and then produces recommendations based on that person’s likes and dislikes. With suitable modification, this technology could be of use to socialism – not to help people decide what to consume, but which matters of policy to get involved in. A person’s tastes, interests, skills, and academic achievements, rather than their shopping traits, could be put through the CF process and matched to appropriate areas of policy in the resulting list of recommendations. A farmer, for example, may be recommended to vote upon matters which affect him/her, and members of the local community, directly, or of which s/he is likely to have some knowledge, such as increasing yields of a particular crop, the use of GM technology, or the responsible use of land by ramblers.
The technology (or a more modern version that has no doubt been developed already) would also put them in touch with other people of similar interests so that issues can be thrashed out more fully, and may even inform them that “People who voted on this issue also voted on…” The question is, would a person be free to ignore the recommendations and vote on matters s/he has little knowledge of, or indeed not vote at all? Technology cannot resolve issues of responsibility, but any system, computer software or not, which helps reduce the potential burden of decision making to manageable levels would facilitate democracy.
Socialism will not be a one-size-fits-all type of society but will reflect the rich tapestry of local regional life-styles, customs and traditions of the world. We acknowledge that working people will determine their own means and methods of self-emancipation and that there will be a variety of ways of organizing the actual implementation of socialist administration. Although it is not always emphasized enough, we accept that there will be a large degree of diversity in the manner this is done and that we only lay down guidelines that apply to political and social and cultural conditions that we face here. Other places and other communities will have there own approaches, depending on local customs and traditions. As the socialist message grows and begins to incorporate more peoples, it will change its outward form to meet and fit specific conditions while still retaining its inner core tenets. We cannot think of imposing a Euro-American-centric cultural view of politics and society. As world socialists we too must take notice of the planet’s diversity.
Rather than vote on November the 3rd for the lesser evil candidate, fellow-workers can initiate a new revolution. Only half the public is registered to vote, and only half of registered voters vote. ’Of, by and for the people’, is sadly not the reality. Americans are apathetic because of the failure of the system to serve the people and they are also angry because no one is held responsible for their misdeeds.
The present White House incumbent and the challenger remain indifferent to the concept of accountability to the majority. Trump and Biden are complicit in the camouflage of plutocracy by creating the form and appearance of popular government with only a minimum of substance. The role of the people is limited to choosing from among the political elite the representatives who would rule over them.
Article V of the Constitution, in effect, legalizes revolution – the right to alter or abolish the social system and the present form of government.
And according to the Declaration of Independence: ‘whenever any form of government becomes destructive of these ends, it is the right of the people to alter or to abolish it, and to institute a new government, laying its foundation on such principles, and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness…when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.’
This is the time for a new revolution for a new type of independence.

Ensuring women have a rights-based access to emergency contraceptives is vital

Shobha Shukla

Many women and girls around the world have experienced contraception failure, missed taking oral contraceptive pills, or been forced to have sex against their will. For these women, emergency contraception is a safe and effective method that reduces the risk of pregnancy. Expanding the range of choices for girls and women to prevent unintended pregnancies, depending upon their specific realities and unique contexts, is critical if we are deliver on sexual and reproductive health related goals and targets.
However, many women remain unaware of emergency contraception, and in many countries in Asia and the Pacific region access to it is still limited and it largely remains a neglected contraception method, said Prof Angela Dawson, Professor of Public Health at the Australian Centre for Public and Population Health Research, while launching the Asia Pacific Consortium for Emergency Contraception (APCEC) at the ongoing 10th Asia Pacific Conference on Reproductive and Sexual Health and Rights (APCRSHR10) Virtual.
what is emergency contraception?
Emergency contraception is an effective reproductive health intervention, which could protect millions of women from unintended pregnancy. It is a group of contraception methods that can be used to prevent up to over 95% of unintended pregnancies, when taken within 5 days after sexual intercourse. But they are more effective the sooner they are used.
Emergency contraception can be used in a number of situations- like unprotected intercourse, concerns about possible contraceptive failure, incorrect/ improper use of contraceptives, and in cases of sexual assault when a woman has not been protected by any effective contraception. It offers a woman the last chance to prevent an unintended pregnancy.
what are the emergency contraception methods?
Methods of emergency contraception are the copper-bearing intrauterine devices (IUDs) and the emergency contraceptive pills. Levonorgestrel pill is the most commonly used emergency contraceptive pill and is effective if taken within 72 hours after unprotected sex. A combined oral contraceptive pill regime consisting of ethinyl estradiol plus levonorgestrel is also used. However, a copper-bearing IUD should not be inserted for emergency contraception following sexual assault as the woman may be at high risk of a sexually transmitted infection such as chlamydia and gonorrhoea, warns Prof Dawson. It is only after treatment for sexual assault, and only if the woman wishes to, can a copper IUD be inserted for long acting reversible contraception.
what is the mode of action of emergency contraceptives?
Emergency contraceptive pills prevent pregnancy by preventing or delaying ovulation. They do not induce abortion nor are they teratogenic, that is, they do not cause any abnormal foetal development. The copper IUD prevents fertilisation by causing a chemical change in sperm and egg before they meet. Emergency contraceptives do not cause an abortion if the woman is already pregnant nor do they harm a developing embryo.
emergency contraceptive use in India
In India, emergency contraceptive pills were introduced in 2002 by the government’s Ministry of Health and Family Welfare and were made an over the counter drug in 2005. Demographic surveys have revealed a large unmet need of contraception in India. According to one study, there were an estimated 48.1 million pregnancies in India in 2015, nearly half of which were unintended. At 15.6 million, abortions accounted for one-third of all these pregnancies. 0.8 million or 5% of these abortions were done through unsafe methods. In spite of abortions being legalized since 1971, 8% of maternal deaths in the country are due to unsafe abortions. Offering emergency contraception is an effective reproductive health intervention for reducing unintended pregnancies and unnecessary abortion related deaths in certain cases.
However, one should not forget that, as the name suggests, emergency contraceptive pills are to be used in an emergency for a contraceptive accident, and not as an ongoing family planning method, following every act of sexual intercourse. They are not a quick-fix solution to unintended pregnancies and their frequent usage can change hormonal patterns and be dangerous for the user’s health. Moreover, they leave women vulnerable to sexually transmitted diseases.
There is lot of misinformation surrounding emergency contraceptives. They are often referred to as the ‘morning after pill’ which is not correct because women do not have to wait till the morning to use emergency contraceptives. There is also the myth that they promote promiscuity and are an abortifacient. In one survey only 15% of the Indian respondents knew that these emergency contraceptive pills should not be used regularly as a contraceptive. Unsurprisingly, this lack of knowledge, coupled with the conservative attitude towards sex, has resulted in a growing popularity of these emergency contraceptive pills in India. In fact, after USA and China, India is the third-largest market for these ‘morning after pills’ sold under the brand names of i-Pill and Unwanted-72. In India, where sex before marriage remains a taboo subject, women are more likely to opt for an emergency contraceptive as it saves them from awkward visits to gynaecologists, many of whom are known for asking their patients whether they are married instead of asking whether they are sexually active.
Then again, as per a newspaper report, we have a state like Tamil Nadu that seems to have put a shadow ban on iPills which suddenly started disappearing off the shelves of pharmacies, and by 2016, they were almost impossible to find. Medical stores seem to feel uncomfortable stocking them, particularly for adolescents and unmarried women, perhaps due to cultural and social barriers.
According to Prof Dawson, Asia Pacific Consortium for Emergency Contraception (APCEC) aims to address these challenges through advocacy efforts, knowledge dissemination and networking to improve evidence-based policy and practice and access to emergency contraception. It will serve as an authoritative source of information for not only researchers but also for policy makers, health providers, and the users.
In these times of COVID-19, there is a need for emergency contraception more than ever. Lockdowns necessitated by the global pandemic have resulted in a dramatic upsurge of intimate partner sexual violence; women are less likely to approach services or pharmacies for fear of contracting the virus; and sexual and reproductive health services have either closed in some places or have restricted hours of work. There are issues with supply, procurement and distribution of contraceptives also. All this has drastically reduced the access to regular contraception, as well as to emergency contraception, and increased the likelihood of unintended pregnancies and possible contraceptive failures. Modelling studies in 14 Asia Pacific countries show that around 32% women of reproductive age will not be able to meet their family planning needs in 2020.
Rights-based access to emergency contraception is a human rights issue and it should be included routinely in all family planning programmes, integrated into all health services and made available for all women and girls in dire need of it. Expanding the range of contraception choices, and ensuring a rights-based access for all women and girls to them, remains vital. At the same time, messaging around emergency contraception must also reinforce that emergency contraception cannot replace regular long acting reversible contraception methods.

Unions help impose new wave of job cuts in Australian universities

Mike Head

On top of the thousands of job losses already inflicted on university workers across Australia this year, managements are now unveiling deeper cuts for 2021, assisted by the role of the trade unions in suppressing staff and student opposition.
Among the latest announcements are more than 200 jobs to be eliminated at Western Sydney University, up to 200 at Perth’s Murdoch University and “hundreds” at Perth’s Curtin University. At each institution, this follows other cost-cutting attacks such as pay and hiring freezes and higher workload allocations.
These moves are in addition to recent pronouncements of hundreds of job losses at Sydney’s Macquarie and Sydney universities, and Melbourne’s RMIT, La Trobe, Melbourne and Monash universities, with cuts of up to 30 percent in some targeted departments.
At a Senate Estimates hearing last month, federal Department of Education officials said its tally of job losses in the sector was about 4,000 already. That did not include contract and casual staff cuts, which the Australian Broadcasting Corporation estimated at 5,000 from two universities alone.
Despite the still worsening global COVID-19 pandemic, managements are also stepping up their demands for a return to face-to-face teaching, which will endanger the health of staff and students alike and increase the risk of further serious infection outbreaks.
Both of these offensives are part of the wider economic “reopening” and “restructuring” drive by governments and big business to exploit the pandemic to boost corporate profits and intensify the decades-long commercialisation and casualisation of universities.
University educators and professional staff, together with school teachers and staff, are being thrust into the frontline of this profit-driven offensive, alongside healthcare, aged care, industrial and retail workers.
In line with the rest of the trade unions, the response of the two main unions covering universities, the National Tertiary Education Union (NTEU) and the Community and Public Sector Union (CPSU), has been to plead with the managements for negotiations on how to best enforce these measures on their members.
A graphic example is the role of the NTEU at Western Sydney University (WSU). There the management has just declared that more than 200 jobs must go for 2021, with 100 academic and professional redundancies on top of 103 unfilled full-time positions. Those totals do not include the termination of fixed-term and casual jobs.
At a WSU NTEU meeting on August 28, branch president David Burchell insisted that there was nothing that union members could do to stop the university offering “voluntary” redundancies (VRs) to eliminate jobs because it had the legal right to do so. Moreover, he said the CPSU was urging the university to use VRs as a means to cut costs.
Effectively given a green light by the NTEU and CPSU, the vice chancellor last week issued a call for VRs, backed by the thinly veiled threat of forced retrenchments if not enough people quit their jobs. While his email said there would be no forced redundancies or stand-downs without pay in 2020, “our most challenging years will be 2021 and 2022.”
At the NTEU meeting, Burchell praised the management for undertaking a formal “change proposal” under its enterprise bargaining agreement with the NTEU, which gives it the right to slash jobs, provided it does so in consultation with the union.
Burchell reported that he and other NTEU office-bearers had renewed meetings with the vice-chancellor and other management executives to offer more sacrifices by the staff, including the “deferral” of a scheduled 2 percent pay rise.
Thus, as the WSWS warned would happen, the union is already going beyond the pay cuts to which it agreed just months ago at WSU—dressed up as the purchase of extra leave days—supposedly in return for guarantees of “job security.”
This is part of a broader drive by the NTEU nationally to inflict deeper cuts on university workers despite the rank-and-file hostility that forced the union to withdraw its offer to the employers of a “national framework” that would have cut wages by up to 15 percent and still accepted the elimination of about 18,000 jobs.
Burchell emphasised the union’s position that it always stood ready to work with management to devise further cost-cutting, under the false flag of avoiding greater job losses. In reality, the NTEU’s volunteering of concessions has encouraged the managements to go further.
The union claims that it will oppose forced retrenchments, but only because it fears the eruption of opposition. In a bid to quell discontent, it also has urged managements to provide the union with “financial transparency” to justify their cuts and to trim other areas of spending, such as construction projects, before eliminating jobs.
That only reinforces the framework created by successive governments, on behalf of the corporate elite, in cutting billions of dollars from public university funding over the past decade. Those punishing cuts began with the Greens-backed Labor Party government in 2011.
The NTEU’s line opposes the necessity for a unified struggle of university workers and students against all the cuts. It diverts staff at individual universities into seeking to help the managements draw up alternative cost-cutting measures, inevitably at the expense of the quality of education and the conditions of staff and students.
The “NTEU Fightback” group established by the pseudo-left Socialist Alternative echoes this position, underscoring the group’s basic agreement with the union.
Speaking to the corporate media about Curtin University’s job cuts, “NTEU Fightback campaigner” Alexis Vassiley said the university should halt its building program instead. Commenting on the university’s announcement, he said: “I think it’s absolutely unnecessary and what it represents is the institution putting buildings above people.”
Aided by the unions and their pseudo-left apologists, the federal Liberal-National government of Prime Minister Scott Morrison is exploiting the COVID-19 pandemic to intensify the assault on the public universities, deliberately further starving them of funds.
It has left the universities facing estimated revenue losses of more than $16 billion over the next four years alone, primarily caused by the pandemic’s impact on high-fee paying international students, while pouring hundreds of billions of dollars into corporate pockets via “stimulus” packages.
The government also has told the universities to focus on “greater alignment with industry needs” and launched an anti-China witch-hunt in the universities—demands that will accelerate the transformation of universities into corporatised businesses serving the needs of the financial elite and tying them into Washington’s military and economic confrontation with China.

Australian big business, federal government demand accelerated lifting of Melbourne lockdown

Patrick O’Connor

The federal government of Prime Minister Scott Morrison, together with numerous corporate lobby groups and sections of the corporate media, has denounced the Victorian state government’s proposed “roadmap” out of coronavirus lockdown measures. The anti-lockdown campaign is aimed at accelerating the ruling elite’s homicidal reopening of the economy, with more widespread COVID-19 infections and deaths accepted as the price to be paid for the generation of higher levels of corporate profit.
On Sunday, Victoria state Labor Premier Daniel Andrews announced an extension until September 28 of only slightly modified “stage four” lockdown measures in Melbourne. These have included a night-time curfew, mandatory mask wearing, a 5-kilometre restriction on people’s movements from their homes, a maximum of one hour outdoors exercise, a ban on visiting other people’s homes except for caregiving, and restrictions on certain economic activities, including an effective suspension of the retail, hospitality, and some service industries.
These measures were put in place in response to the “second wave” spike of coronavirus infections, which reached a daily peak in Victoria of 725 cases on August 5, threatening the outright collapse of the hospital and healthcare system.
Under the announced “roadmap,” the alleviation of the “stage four” measures from September 28 is based on the state recording a daily average of between 30 and 50 new cases (the average is now 85 but is steadily declining).
Another step is scheduled for October 26, if there are fewer than five daily average cases over the previous fortnight, with the curfew ended, restrictions on people leaving their homes lifted, a possible “staged return” of face to face school teaching for all year levels, and the lifting of restrictions on construction, hospitality, retail, tourism, and some other sectors.
An additional step in the “roadmap” is scheduled for November 23, conditional on no new coronavirus cases in the state being recorded over a fortnight, involving permitting larger crowds and social gatherings as well as looser restrictions on other economic activity, including the reopening of indoor entertainment venues and pubs. The lifting of all restrictions, labelled by the government a “COVID normal” situation, is dependent on no new infections in the state for 28 days.
The federal government immediately denounced these plans, signalling an end to the bipartisan unity between the Labor and Liberal parties on pandemic policy.
In a joint statement issued on Sunday, Morrison, Treasurer Josh Frydenberg, and Health Minister Greg Hunt declared that Andrews’ proposals amounted to “crushing news for the people of Victoria.” Emphasising that the “roadmap” was “a Victorian government plan,” the federal government leaders complained that “the continued restrictions will have further impact on the Victorian and national economy.”
The prime minister followed up this statement with a press conference yesterday to reiterate the “crushing news” soundbite several times, and to refuse to commit any additional economic support to people affected by the extended lockdown measures. Morrison signaled his support for a corporate-led campaign against the “roadmap,” declaring that he regarded the Victorian government plan as both a “worst-case scenario” and “a starting point in terms of how this issue will be managed in the weeks and months ahead.”
In a thinly-veiled threat, he pledged to deliver “constructive feedback to the Victorian government” after “sitting down with industry [and] business.”
Corporate lobby groups and the media, led by the Murdoch and financial press, are whipping up a frenzied campaign against the Andrews government. They regard as intolerable any extension of the restrictions placed on the corporate extraction of surplus value from the working class. This is in line with the “back to work” campaign being promoted by the ruling elite internationally, accompanied by the promotion of homicidal “herd immunity” ideas.
Paul Guerra, head of the Victorian Chamber of Commerce and Industry, responded to the state government’s “roadmap” by issuing the extraordinary demand that profit interests be openly prioritised ahead of public health. “Business needs to be heard,” he declared, “and that’s the part that we’ve been disappointed about, is [that] health measures have taken priority.”
The media has echoed such statements. In a characteristically lurid piece, the Murdoch-owned Australian newspaper today compared the lockdown measures in Melbourne to police-state repression under Stalinist rule in Poland. The outlet’s sudden discovery of the importance of civil liberties stands in stark contrast to its record of cheerleading every piece of antidemocratic legislation adopted under the guise of the so-called war on terror.
The Australian Financial Review’s editorial today hailed various corporate figures for “rais[ing] the alarm against this public health cult of elimination [of coronavirus].”
The Victorian state government has attempted to win public support by posturing as a champion of public health. Andrews declared on the Australian Broadcasting Corporation’s “7.30” program yesterday, “politics has never mattered less to me.… Leadership is not [about] doing what’s popular, it is about doing what’s right.”
This bogus public relations “spin” belies the reality that the Labor Party represents the interests of big business and finance capital no less ruthlessly than does the Liberal Party. Only tactical differences now separate the preferred policies of the two chief political instruments of the ruling class.
Andrews has repeatedly emphasised his determination to open up the economy on behalf of the corporations as quickly as possible—but he has calculated that doing so amid mass coronavirus infections and deaths is not feasible. He has been publicly backed by some important business figures, including Australia’s wealthiest individual, Anthony Pratt of Visy Industries (personal fortune, $15 billion).
Andrews, who served as health minister (2007-2010) under the previous state Labor government before becoming premier in 2014, is acutely aware of the fragility of the chronically under-resourced and largely privatised Victorian healthcare system. Any sustained surge in coronavirus would likely trigger a catastrophic breakdown, even worse than that seen in New York and northern Italy during the initial stages of the global pandemic.
“When it comes to public health infrastructure and resources per head of population, Victoria is much worse off than any other state in Australia,” leading infectious disease expert Raina MacIntyre of the University of New South Wales’ Kirby Institute explained on the ABC. “Victoria is just a shell of a system, it’s just been decimated, and that’s fine in the good times, you can get by on a minimal model, but when there’s a pandemic all those weaknesses are exposed.”
The state Labor government is culpable for the coronavirus disaster that has hit Victoria. In April, Andrews joined every other state premier and the prime minister in rejecting a strategy aimed at eliminating coronavirus infections, instead agreeing to permit a supposedly “safe” level of continued COVID-19 infection, on the explicit basis of preventing businesses from incurring excessive costs. The premature lifting in May of the lockdown measures imposed during the “first wave” triggered an entirely predictable resurgence of coronavirus cases.
Andrews and the state Labor government are conscious of provoking working class opposition in the event that another rushed reopening of the economy leads to spikes in infections across different industries and workplaces. Social tensions are escalating as unemployment is rising to depression-level rates.
Amid the crisis, and the eruption of internecine fighting within the political establishment, the critical task confronting the working class is to develop an independent struggle in defence of its interests. Workers, both employed and unemployed, should form rank and file workplace and community safety committees, organising resistance, including strike measures, against unsafe conditions. This requires a political struggle against both the federal Liberal-National government and the state Labor government in Victoria, and the development of the fight for a workers’ government and socialist policies that will ensure the economic, social, and healthcare safety of all working people.

Brazilian aircraft manufacturer Embraer slashes 2,500 jobs

Tomas Castanheira

Last Thursday, the aircraft manufacturer Embraer announced the dismissal of 2,500 workers in Brazil, including 900 direct layoffs and another 1,600 through voluntary dismissal programs. The workers in São José dos Campos, the main center of the company in Brazil, went on strike the same day.
The cut corresponds to 12.5 percent of the 20,000 workers employed by Embraer globally. In Brazil, where the transnational corporation is headquartered, it employs 16,000.
The attack on Brazilian workers is part of an international wave of mass layoffs that has had a profound impact on the aviation sector. Other large companies in the industry have made massive job cuts in proportions similar to those carried out by Embraer.
The US-based Boeing, which in May of this year canceled a deal to buy a substantial part of Embraer, announced in April plans to cut 10 percent of its approximately 160,000 employees, mostly in the United States. In recent weeks, it has stated that the layoffs will be larger than previously announced. Airbus announced a restructuring plan involving the slashing of 15,000 jobs globally, 5,000 of them in France, 5,100 in Germany, and 1,700 in the UK.
Bolsonaro at the delivery of the KC-390 airplane to the Brazilian Air Force, 2019. (Credit: FAB)
Massive layoffs are also being prepared by the airlines. American Airlines, the largest company in the industry, has announced that it will lay off “at least” 40,000 workers, more than half of whom have already entered buyout programs. Lufthansa, based in Germany, announced the slashing of 22,000 jobs. In Brazil, Latam workers recently protested against some 3,000 layoffs.
The companies were impacted by the air travel stoppage as a result of the COVID-19 pandemic. The International Air Transport Association (IATA), in a report released in June, estimated an $84 billion loss to the global air transport industry by 2020, declaring it the “worst year in aviation history.”
In its official statement on the layoffs, Embraer claims to have had, in the first half of 2020, a 75 percent decrease in its delivery of aircrafts and a 2.95 billion reais (about US$560 million) loss, which it attributes in part to the failure of its negotiations with Boeing. It cited a “lack of expectation of the recovery of the air transport sector in the short and medium term.”
The jobs massacre being carried out globally against the working class stands in stark contrast to the multi-billion-dollar state rescue packages for these companies, guaranteeing the income of a parasitic financial oligarchy.
In the US alone, the CARES act has allocated US$50 billion to the airline industry. In France, €15 billion was directed to the rescue of Air France and Airbus. In Brazil, Embraer received a R$3 billion (about US$570 million) loan from a consortium of banks coordinated by the National Bank for Economic Development (BNDES).
Capitalist interests are being guaranteed internationally not only by bourgeois governments, but by corporatist trade unions that play a central role in pushing through the mass layoff plans.
In France, the union led by the Workers Force (FO) has supported the job cuts at Airbus by opposing only “forced layoffs,” demanding that they be carried out through buyout plans. Above all, it demanded the funneling of state resources to the company, arguing that it has a better chance of recovering than its competitors, particularly Boeing.
The same essential line is being promoted by the São José dos Campos Metalworkers Union (SMSJC) in response of the layoffs at Embraer. The SMSJC has been controlled for decades by the Morenoites of the Unified Socialist Workers Party (PSTU), which has presided over a protracted decline in the conditions faced by the workers it purports to represent, which, besides at Embraer, includes General Motors and other large companies.
While promoting a strike to relieve the pressure from Embraer workers’ anger, the PSTU union is preparing the ground to accept the layoffs. The union leader at Embraer, Herbert Claros, criticized the company for not having previously negotiated the layoffs with the union, comparing it to a car sale, in which “you don’t impose your price.”
Claros stated: “Embraer workers know that in the last three negotiations on the buyouts the company has forced through and presented only its own proposals. The union tried to implement at least one clause: to guarantee the stability of those who didn’t adhere to the buyouts. ... Don’t we make deals with other companies? The main example is General Motors, where the union recently reached an agreement on layoffs, on buyouts.”
Giving a pseudo-radical cover to this corporatist policy and trying to divert a confrontation of the workers against the profit interests of the company, the union focuses its fire on the alleged incompetence of the Embraer management. The main slogan advanced by the PSTU is the “re-nationalization” of the company.
Behind this slogan—which has nothing to do with socialism—the PSTU seeks to subordinate the working class to the nationalist bourgeoisie and the Brazilian military. Shortly after the failure of the negotiations with Boeing, the Morenoites launched a chauvinist manifesto under the headline “An Embraer for Brazilians. Re-nationalize, now.”
The manifesto states that Embraer “carries the pride of being an accomplishment of Brazilian effort and competence ... the accumulation of five decades of heavy investments, which allowed Brazil to figure among the select group of nations that have the capacity to develop airplanes.”
This is an open defense of the Brazilian military dictatorship. Embraer was created by the Brazilian Air Force in 1969, at the height of the regime’s reign of terror. The fact that it was driven by the Brazilian state, which owned 51 percent of its shares and controlled its management, doesn’t change the fact that it was completely oriented to capitalist profit and the reactionary interests of the Brazilian bourgeoisie, subordinated to US imperialism.
The manifesto attacked the attempt to sell Embraer to Boeing as a deal that “would mainly benefit the American company ... to the detriment of the strategic interests of the Brazilian nation.” And it insisted that “Defending its re-nationalization, now, is the duty of the Brazilians who dream and fight for a sovereign country aware of its power.”
Based on this ultra-nationalist policy, they gathered support from a wide range of bourgeois politicians and trade unions. This alliance was celebrated at an event attended by the main leaders of the Workers Party (PT), the Maoist Communist Party of Brazil (PCdoB), and the Democratic Labor Party (PDT).
In this sordid event, the PSTU made it clear that the “strategic interests of the Brazilian nation” they defend have nothing in common with the interests of the working class; rather, they are based on their intense exploitation.
Defending the company’s competitiveness in the global market, the PSTU’s economics specialist, Gustavo Machado, declared: “This supposed crisis that Embraer is going through has nothing to do with its performance. The company has a net worth that is far superior to its competitors Airbus, Boeing, Bombardier. It has a profit rate that is superior to the profit rate in the market.”
The profitability of the company praised by the PSTU is the product of a series of layoffs, wage cuts and an intensification of the exploitation of workers that resulted from the company’s privatization process in 1994. Although they now attack the privatization process as a blow against the “national interests,” the Morenoites extol the results of its destructive effects upon workers.
The PSTU argues that to compete with its global rivals, Embraer needs substantial financing from the Brazilian state, “Especially in the face of the crisis that we are experiencing today with the paralysis of much of the commercial aviation sector and competitors that are emerging with very strong input from the state,” said Machado. He pointed out that Boeing has an important part of its revenue linked to “partnerships with the U.S. government, especially in defense and security.” The suggestion, clearly, is that Embraer should enjoy similar “partnerships.”
Embraer plant in São Paulo. (Credit: Ministério da Defesa)
This appeal to the military is by no means hidden by the PSTU. Its event was closed with a call to those in the Brazilian military, especially the Air Force, who defend “national sovereignty” and believe in the “Embraer project.”
This call is aligned with the growing demands of the military in the government of Brazil’s fascistic President Jair Bolsonaro for greater funding. Recently, the Defense Ministry demanded a 37 percent increase in the military budget “to fund projects considered a priority, such as the purchase of fighter jets, rocket launchers and nuclear propulsion submarines.”
The National Defense Policy (NDP) and the National Defense Strategy (END), published this year, present the demand for an increase in military funds alongside the forecast of a world scenario marked by “rivalry among states.” This is a clear response by the Brazilian ruling class to the escalation of international geopolitical tensions, strongly driven by Washington’s strategic policy based upon “competition between major powers.”
Growing US intervention in Latin America has dragged Brazil into an increasingly direct military role in the region. On his last trip to the US in March, Bolsonaro signed a military agreement to boost the sale of Brazilian weapons to the Pentagon. The discussions involving the agreement were fully connected to Brazil’s support for US-led regime change operations in Venezuela.
The attempt by the PSTU union to subject workers to the interests of the Brazilian state and its military has an absolutely reactionary character. This policy does not represent the defense of workers’ jobs or conditions, but rather demands ever greater sacrifices in the name of capitalist profit.
Embraer workers must join with their comrades around the world to defend their jobs and living conditions, promoting a relentless struggle against the capitalist oligarchy controlling the transnational corporations. Their billionaire wealth must be expropriated and redirected to attend to social needs, first and foremost the fight against the COVID-19 pandemic, while guaranteeing wages for all workers.
The study of the International Committee of the Fourth International’s protracted struggle against revisionism, and the building of revolutionary parties in Brazil and throughout Latin America based on this experience, are essential to defeat the attempts to betray the working class and lead it to victory.

Open letter in Le Soir: Belgian ruling class calls to spread COVID-19

Jacques Valentin

On August 27, the francophone Belgian newspapers La Libre Belgique and Le Soir published an open letter signed by doctors, legal experts, economists, teachers and journalists. Titled “An open letter to our political leaders: It is urgent to totally review the handling of the Covid-19 crisis,” it denies outright the seriousness of the epidemic as well as the necessity of health measures taken to contain it.
With nearly 10,000 deaths for a population of less than 12 million, Belgium has suffered a horrific 853 deaths per million inhabitants, a mortality rate only surpassed by Peru. In spite of “sometimes terrifying conditions” in which many elderly Belgians died, according to Doctors without Borders, the Open Letter speaks not a word of compassion for the victims of the pandemic or their bereaved families. This chilling indifference is especially disturbing given the large number of doctors among the signatories.
The Open Letter, whose arguments are astonishingly impoverished given the professional qualifications of the signatories, sets out to minimize the catastrophe. It calls the coronavirus a “virus posing dangers no worse than the seasonal flu that we experience every year amid ‘near’ total indifference.”
The Open Letter carefully avoids citing figures for the number of lives lost to the pandemic. However, its reference to flu is a brazen lie. Seasonal flu in Belgium accounts for 10 times fewer deaths than has COVID-19 so far this year. According to the infectious disease specialist Yves Van Laethem, flu kills around 1,000 people per year in Belgium, with small variations from year to year. One would have to go back to the Hong Kong flu epidemic of 1968, the worst since Spanish flu in 1918-19, to observe a comparable number of deaths.
Unlike the flu, the population does not have antibodies against COVID-19, which is highly contagious; without lock-downs to contain it, the disease could easily infect 60 percent of the population. The rate of hospital admissions for COVID-19 is far superior to the flu, as is the mortality rate. This is why there are many gravely ill patients and deaths, despite lock-downs that succeeded in limiting infections to a relatively small fraction of the population.
The Open Letter denies the proven benefits of lock-downs, however, flatly stating: “There is no scientific basis to recommend isolating healthy people.”
In fact, due to the lack of preparation this spring, the lack of masks and protective equipment, and the impossibility of easily distinguishing the healthy from the sick, the epidemic surged across Belgium, Europe and internationally. Every contaminated person transmitted the disease to roughly three others, and the number of daily deaths doubled every two days on average at the pandemic’s peak intensity.
If lock-downs had been decided a week later, the peak in April deaths would therefore have been substantially higher, as well as the overall number of deaths. In France, the public hospitals in Paris, which were saturated with sick patients, openly acknowledged that they would have been overwhelmed if the lock-down had been decided one day later.
The Open Letter is not interested in scientific results, however, nor does it seek to honestly establish what health measures did or did not help treat the disease. It is above all a partisan attack against the lock-down policy. It tries to snow the reader in with dubious or discredited arguments: that some countries which did not impose lock-downs had as many or fewer deaths as countries which did; that lock-downs encourage domestic violence; and that they increase poverty, which leads to deaths.
These arguments are a lying cover for the interests of the financial aristocracy. Its fundamental objection to lock-downs—namely, that too much money is spent saving the lives of people who are mostly workers or poor—also appears in the “Open Letter.” It laments, “On the economic level, 50 billion euros have evaporated. Never has so much money been invested to ‘save’ lives, even with regard to the insane estimations of the number of so-called avoided deaths (a figure which remains presently unknown).”
In reality, everything here is false: the number of deaths and their rise during the pandemic is fairly precisely known. As for the “evaporated” sums of money, it is not €50 billion but €2 trillion which have been allocated to European bank and corporate bailouts. Unemployment and poverty are surging, and small businesses are going bankrupt, not because the health system has tried to treat the disease, but because the banks and super-rich monopolize the resources of society.
The “Open Letter” spares the reader nothing as it lists various fallacious arguments to claim that nothing can or should be done to halt the spread of this deadly disease.
While declaring that “the wearing of masks has strictly no benefit” except possibly if “physical distancing cannot be met,” it adds: “Vaccines have immediately been presented to us as the sole solution to end the pandemic, whilst their harmlessness, efficiency and duration of protection are uncertain. Other solutions in the medium and long term must be envisaged, such as herd immunity.”
Herd immunity consists in allowing the maximum number of people to be infected, while hoping that the survivors will conserve an immunity which will slow down the virus’ spread in the broader population. That is the strategy of Donald Trump in America, claiming as nothing can be allowed to disturb the economy and extraction of profits, the disease should be given time to spread across the general population, whatever the resulting death toll. As a result, the world’s richest country has the most fatalities—191,481 to date.
It is a policy which, in order to preserve the fortunes and privileges of a parasitic ruling class, refuses to base itself on scientific knowledge and society’s capacity to organize itself to confront the virus. In spite of the extraordinary progress of science since 1918-1919, it proposes to let COVID-19 infect and kill millions, as did the Spanish flu.
The letter shows that broad sections of the Belgian medical and academic community are susceptible to the class pressures exercised by the financial aristocracy as it demands a total, unrestricted re-opening of the economy. The “Open Letter” also demands the departure of experts who advise the government in order to get rid of everything faintly resembling a lock-down policy: “The legitimacy of the experts now in control must be put into question.”
Claiming that “the current climate of covidophobia is totally unjustified and generates harmful anxiety,” the letter demands the adoption of policies known to spread the virus: “The long-term risks associated with excess hygiene must be taken into account…Children must be able to return to nursery, primary and secondary school under normal conditions, allowing for basic hygiene measures like hand washing…University students must get back into the lecture halls and social life in general.”
These nauseating arguments underline the indifference of the ruling class to the number of deaths produced by the defense of its riches. Workers have the right to information and scientifically-founded perspectives in order to protect their lives and class interests. We invite our readers to share widely the WSWS analyses of the COVID-19 pandemic, and to form their own rank-and-file safety committees, independent of the state and trade unions, to watch out for their health and safety in the workplace and in the working-class neighborhoods.

General Motors, Honda announce joint venture to cut billions in production costs

Jessica Goldstein

Last Thursday, General Motors and Honda Motor Co. announced a deal to merge some operations in North America with a focus on sharing design teams and manufacturing technology to streamline the production of both electric-powered and combustion engine vehicles.
The planning discussions will begin immediately for the joint design venture, according to the Associated Press, with a timeline to begin engineering work for new vehicles at the start of 2021. The two companies will also join operations on “manufacturing, parts purchasing, research and connected services.”
The agreement is thus far nonbinding, and the two corporations have yet to come to definitive cost-savings, but Reuters reported the day of the announcement that both corporations expect to reap savings in the billions of dollars from the joint venture.
The announcement marks a deepening of the relationship between the two auto giants less than one year after Fiat Chrysler Automobiles (FCA) and PSA Group signed a binding merger agreement in December 2019. Before the plans between GM and Honda were announced, the two automakers had already committed to financial collaboration in October 2018 on production of autonomous, that is, self-driving vehicles. Honda committed to investing $2.75 billion into the development of a line of mass-produced autonomous vehicles manufactured by GM’s self-driving unit, Cruise Automation.
The timing of the announcement is significant. For the past several years, the global auto industry has experienced one major shakeup after the other as automakers scrambled to enter the competitive market of electric and autonomous vehicle development, currently dominated by US-based Tesla. Companies are desperately seeking ways to produce the greater profits demanded by the global stock indexes in the face of declining demand for new vehicles on the world market, exacerbated by the coronavirus pandemic.
In December 2019 the WSWS Autoworker Newsletter wrote of the FCA-PSA merger that it was “the first of what is expected to be a wave of new consolidations in the global auto industry, under conditions of a slowing world economy, the eruption of trade conflict and an intense battle to dominate emerging markets for electric and self-driving vehicles and other so-called ‘mobility technologies.’”
The wave of consolidations will no doubt accelerate after 2020 comes to a close and auto corporations come to grips with the full financial impact of the pandemic.
According to S&P Global Platts, auto industry tracker Wards Intelligence predicted that global auto “inventories could still be about 30 percent lower than year-ago levels at the end of July.” The drop in second-quarter inventory factored into a sales drop of 33.3 percent year over year for the quarter, based on calculations by the Bureau of Economic Analysis.
The auto industry is not expected to return to pre-pandemic levels of production and profit generation for several years. The S&P report cited analysis by CFRA Research, which “expects U.S. new-vehicle sales to plummet 22% in 2020 year over year, with a 12.8% rebound in 2021 from 2020.”
GM’s announcement of the tie-up with Honda is the latest move by the Detroit-based automaker in response to the threat posed by the merger of its rival FCA with PSA, which will create the world’s fourth-largest automaker, to be called Stellantis. The merger will knock General Motors and Ford Motor into sixth and seventh places respectively.
The FCA-PSA merger is set to close by the end of the first quarter of 2021 and will provide a windfall for the two corporations, including $3.7 billion in annual cost savings. Some features of the GM-Honda deal mirror those of the FCA-PSA merger plan. The decision to join production on electric vehicles is aimed at meeting government pressure to cut emissions and to carve out a slice of the burgeoning electric vehicle market.
As part of the proposal, General Motors will help to develop two new electric vehicles for Honda, which will be built at GM plants, the exact locations yet to be decided, and powered by GM’s Ultium electric batteries, which are still under development.
Under conditions of the pandemic, automakers across the world are using the crisis as an opportunity to restructure and to deepen the exploitation of workers. In response to the threat to private wealth caused by the temporary factory shutdowns earlier this year, implemented only after workers in North America and Europe carried out wildcat actions against the threat to their lives posed by the virus.
As the stock markets were bailed out by governments around the world, the global automakers began to force workers back into the factories as the pandemic still raged under threat of economic blackmail in order to extract profits to meet soaring debts.
The trade unions fully collaborated in this process, agreeing to totally inadequate safety protocols in order to get workers back onto the assembly lines.
Along with the French Stalinist General Confederation of Labour (CGT), the United Auto Workers welcomed the merger of PSA and FCA, even though analysts expect it will slash jobs across Europe and North America when the companies consolidate vehicle-building platforms.
Voicing the UAW’s enthusiasm toward the FCA-PSA merger, UAW Vice President Cindy Estrada said she hoped it will “bring opportunities for growth that will benefit UAW members and our communities.”
In relation to the GM-Honda announcement, the UAW has done nothing to prepare opposition to the coming attacks. Last week, UAW Local 2250 in Wentzville, Missouri issued a web post titled, “Are You Ready To Build a Honda?” implying the UAW takes it as a given that the companies will merge to create electric vehicles and workers will have to deal with whatever cuts to their livelihoods the corporations deem necessary.
In October 2018 the UAW forced through a sellout contract after a determined 40-day strike by 48,000 GM workers. The deal closed a number of plants, including the historic assembly plant in Lordstown, Ohio. During the strike, the UAW doled out starvation rations of $250-275 per week to workers. After the contracts were forced through, GM then sold the Lordstown plant to a startup, Lordstown Motors, which at the time planned to utilize the factory to build electric trucks.
The company also planned the 2022 opening of a new battery plant next to the shuttered assembly plant, to be operated jointly with Korean company LG Chem under a separate UAW contract. The factory will only employ 1,100 workers, a quarter of the more than 4,000 who once worked at the Lordstown plant. The new workers will earn poverty-level wages of just $15-17 per hour. Earlier this year, GM announced that it will receive a 75 percent local tax abatement over 15 years for the building of the battery plant. These cost savings no doubt were used to entice Honda into signing onto the merger.
To resist the coming attacks, workers should place no faith in the corrupt scandal-ridden UAW.
Workers must take the opposition into their own hands. New organizations, rank-and-file committees, must be built in every plant by the workers themselves to break through the barriers of nationalism and forge international working class unity against the attacks of the corporate giants, who do not care which country workers live in but only how much surplus value can be extracted by cutting jobs and wages to the bone.