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Lockouts: The Empire Strikes Back
If you’re looking for evidence of just how confident, militant, and insufferably arrogant companies have become in recent years, look no further than the phenomenon of the lockout. A lockout is where a company closes its doors, refusing to allow its union employees to return to work until they accede to company demands—demands that typically call for staggering cuts in wages and benefits.
Unlike strikes—which, as the ultimate manifestation of employee dissatisfaction with management, are a universally recognized form of protest—lockouts are a form of extortion. A lockout represents an unambiguous threat, an ultimatum. Management figuratively places a gun to the employees’ heads and says, Take it or leave it.
There was a time not long ago when strikes were a regular part of the American economic landscape, and when, conversely, lockouts were about as scarce as hen’s teeth. In fact, lockouts were practically unheard of. But given that the business world has been recalibrated—and given the availability of replacement workers, part-timers and temps, coupled with the weakening of state and federal labor laws—strikes are now relatively uncommon, and, in a reversal, lockouts have become management’s new weapon of choice.
Thousands of people gather for a rally dubbed "London Day of Action Against Corportate Greed" in London, Ont. Caterpillar Inc. locked out workers after they rejected a contract offer that would have cut wages in half and slashed benefits at a time when the company is reporting record profits.(Jan. 21, 2012).One of the uglier incidents occurred recently at Caterpillars’ London, Ontario, facility. After the membership refused company demands that they accept a whopping 55-percent wage cut, plus the elimination of the pension plan (along with other take-aways), the plant’s 465 production workers were abruptly locked out. No further negotiating, no compromises, no mediation; the company went directly to lockout mode. Then, after a 6-week lockout, Caterpillar announced it was shutting the plant down for good, and that everyone had lost their jobs. That’s what we politely meant by businesses “recalibrating.”
Strikes have always had a distinctly schizoid nature, being both dreaded and embraced, glorified and vilified Traditionally, when workers in a viable facility (i.e., one making a healthy profit) reached the point in contract negotiations where the company refused to budge, they hit the bricks. They shut the place down, walked off the job, thereby depriving the company of the ability to make a profit, and, very importantly, sacrificing their own economic well-being by no longer earning a wage or receiving benefits.
Because the stakes are so high, strikes have always been rightly regarded as spooky, monumental undertakings. While some strikes have been successful, many—perhaps most—have not. But successful or not, strikes need to be recognized as labor’s only real weapon. Depriving management of the opportunity to make money is the only bullet in the chamber; everything else is theatrics. Other than striking, what’s a union going to do to get the management’s attention—threaten to stand on the front lawn and scream insults through a megaphone?
Here’s a true story. In 1983 I was part of a union negotiating team that called a strike against a major manufacturing company, an action that put more than 700 men and women out on the street. It was a chaotic scene. Even though we got a 96-percent strike authorization vote prior to the shutdown, once the real thing happened, and the hammer dropped, people were understandably frightened and anxious. The strike lasted 57 days.
Looking to nip any problems in the bud, we immediately contacted the company’s HR rep and made clear our views regarding people crossing the picket line. Although we were a tight local, and didn’t anticipate scabs, you never know what people will do in a crisis. We told the company that if they allowed scabs to cross, we would be forced to retaliate by taking out full-page ads in local newspapers, exposing the company’s greed and stubbornness, and calling them bad names.
They didn’t take our peremptory salvo well. The strike was barely four hours old, and tensions were already running high. They told us to shut up, mind our own business, and not presume to lecture them on how to run their operation. But they also informed us that they had no intention of allowing people to cross over, believing that allowing people to cross would create more problems than it solved. We believed them.
But within a week or two, a handful of our guys tried to do just that. They approached at night (it was a 24-hour operation) hoping they wouldn’t be observed, and asked to be put to work. When the company refused, it occurred to them that being denied entry might very well constitute a “lockout.” While it was a known fact that strikers weren’t entitled to unemployment benefits, wouldn’t “locked-out” employees be eligible?
They went down to the unemployment office and made their case. They told the duty officer that even though their union had called a strike, they themselves wished to continue working, but the company wouldn’t let them. “Doesn’t that mean that this is a lockout and not a strike?” they asked eagerly. The duty officer seemed puzzled. She thought about it a moment and answered: “What’s a lockout?”
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17 Comments so far
Show AllIsn't it nice that Caterpillar is so profitable they can shut down plants out of spite. Like the rich kid that used to take his ball and go home, when I was a kid playing sandlot baseball. The rest of us pooled our money and turned in empty bottles and bought our own ball.
I know the workers can't buy their own plant, like we did the ball, but it would be nice if they could.
Occupying the workplace is a great suggestion. They did it at that Chicago window company some years ago and received enormous public support.
Sit-ins are good tactics, but like any tactics guarantee nothing in themselves. In the Chicago window company case, the company moved to Iowa and set up a smaller non-union operation. Which they would have done anyway.
The workers won additional severance benefits and learned alot about the power of solidarity and its limits in our current situation.
Worker solidarity and direct action also require the community other allies to get behind the activists to achieve deeper more permanent gains,
The lockout tendency may just be the spark that's needed to light the flame of the localization/sustainability movement. The one-and-only draw that the "corporatization" movement had going for itself was its' security and reliability (the 50's/60's idea of a job for 40 years followed by secure retirement). Take that away with lockout & "re-calibration" and the empire's got nothing. When the localizing/sustainability movement becomes a raging success, the corporate empire will be forced to go a-hunting for a slave workforce (ie. raiding the localistas). That may take the form of declaring a sufficient number of people "terrorists" then ship them off to "prison/labor" camps (for reforming their character of course). My brother observed that, when the wall fell, and the USSR disappeared, the last thing to keep "the western powers" honest,had just disappeared too.
Cooper Tire has locked out thousands of it's workers also.
There's also a sugar beet lockout in, I think, Fargo, North Dakota. As was pointed out, the lockout is management's new weapon.
The lockout is by no means a new weapon. Historically, employers everywhere have used any means available to literally and figuratively starve out workers until they capitulate, whether in preindustrial feudal societies, industrial capitalist societies or post-industrial capitalist societies.
One of the reasons that U.S. unions consistently lose strikes and lockouts is that they refuse to admit to the realities of class warfare and the simple fact that the employer's first goal, even before making profits, is to destroy union power or destroy unions altogether.
After more than a half-century of labor-management cooperation schemes -- despite a steadily declining standard of living for workers during the last 3-4 decades -- unions have become too weak in numbers and/or lack the collective imaginations necessary to fight the brutal struggles in the workplace and society that current conditions demand.
Nothing new here.
Caterpillar's decision to close its London, Ontario locomotive plant exemplifies the ruthlessness of big business and the urgency of workers in North America and around the world uniting their struggles against the corporate offensive on jobs, wages and workers’ rights.
Last Friday, a week after Caterpillar reported that it had made a record $4.9 billion profit in 2011, the company announced it was transforming the lockout into a plant closure. The shutdown will devastate London, a southwestern Ontario manufacturing center that already has an official unemployment rate of close to 10 percent.
Caterpillar is expected to move the final locomotive assembly operations carried out at the London plant to a new facility in Muncie, Indiana, where workers are paid as little as $12.50 per hour. On Saturday, thousands of unemployed workers attended a Caterpillar “jobs fair” in Muncie. Another possible site is EMD’s flagship plant in Lagrange, Illinois, where the UAW has helped impose a series of concessions contracts reducing wages to levels near those Caterpillar sought to impose at its London facility.
The London workers should reject the false choice given them by Caterpillar and accepted by the CAW—impoverishment through wage cuts or impoverishment through unemployment. They should occupy the plant and appeal to workers across North America to join them in a struggle against all concessions and in defence of all jobs...
http://www.wsws.org/articles/2012/feb2012/pers-f09.shtml
from the article:
~ Unlike strikes—which, as the ultimate manifestation of employee dissatisfaction with management, are a universally recognized form of protest—lockouts are a form of extortion. ~
hmmmm...
Definition of EXTORT
transitive verb
: to obtain from a person by force, intimidation, or undue or illegal power : wring; also : to gain especially by ingenuity or compelling argument
extortion is this planet's guiding principle...
once they have the land, they have everything...
the rest is table scraps thrown to us dogs...
Leave NAFTA. Slap a 100 percent tariff on all products manufactured by Caterpillar from outside the country of Canada.
Seize the plant in London Ontario and nationalize it. Build bulldozers locally.
I like that idea. You want to do business outside your home country, fine, but don't think you won't be asked to pay a price. Fair is fair.
Expect nothing from the present right-wing Tory Gov't in Canada. The P.M. (Harper) is a clone of Bush II. But Canadians are a lot more cohesive than Americans (we're class-ridden, confused, race-baited and maliciously envious) and could actually succeed in closing down every sales point for Caterpillar in Canada! Then talk to Mexicans, Indians, Australians (who buy a lot of Caterpillar products) and see if THE PEOPLE in those countries could also deliver some straight-out revenge on the Caterpillar hierarchy!
There are some excellent competing products out there! 'twould sure be a shame if Caterpillar lost its foreign market while it saved a few bucks on wages here and there!
"With so abondant workforce there is no reason to stop locking out bad apples" ... That is one of Marx's first lessons on capitalism and class warfare. The system just has to change!
Hmmm
Has the government ever actually sent in troops to protect Union workers and their rights when denied by the company? Ever? Or is the use of mlitary and police force strickly a protetion racket for corporations against labor?
I believe Michigan's governor ordered the state's National Guard to protect the Flint sit-down strikers in 1937. But that's an exception.