As the UAW has done for the American auto industry, the White House will do for the rest of he American economy. Although work on a Boeing 787 assembly plant in North Charleston, South Carolina has progressed so far that it is scheduled to open this summer, the National Labor Relations Board has decided to prevent the company from building airplanes there. The NLRB is responding to a complaint that claims Boeing is building the plant in a "right to work" state in retaliation against union workers in Washington.
Lamar Alexander explains what this means.
But now unions want to make it illegal for a company that has experienced repeated strikes to move production to a state with a right-to-work law. What would this mean for the future of American auto jobs? Jobs would flee overseas as manufacturers look for a competitive environment in which to make and sell cars around the world.
It's happened before. David Halberstam's 1986 book, "The Reckoning"—about the decline of the domestic American auto industry—tells the story. Halberstam quotes American Motors President George Romney, who criticized the "shared monopoly" consisting of the Big Three Detroit auto manufacturers and the UAW. "There is nothing more vulnerable than entrenched success," Romney warned. Detroit ignored upstarts like Nissan who in the 1960s began selling funny little cars to American consumers. We all know what happened to employment in the Big Three companies.
Even when Detroit sought greener pastures in a right-to-work state, its "partnership" with the United Auto Workers could not compete. In 1985, General Motors located its $5 billion Saturn plant in Spring Hill, Tenn., 40 miles from Nissan, hoping side-by-side competition would help the Americans beat the Japanese. After 25 years, nonunion Nissan operated the most efficient auto plant in North America. The Saturn/UAW partnership never made a profit. GM closed Saturn last year.
Nissan's success is one reason why Volkswagen recently located in Chattanooga, and why Honda, Toyota, BMW, Kia, Mercedes-Benz, Hyundai and thousands of suppliers have chosen southeastern right-to-work states for their plants. Under right-to-work laws, employees may join unions, but mostly they have declined. Three times workers at the Nissan plant in Smyrna, Tenn., rejected organizing themselves like Saturn employees a few miles away.
Clearly, the Obama administration is following the money. Obama really would prefer the economy to start growing, but he doesn't want that as much as he wants the union money. Cash from mandatory union dues will find its way into Democratic campaign coffers, and that's more important than anything. The White House will do whatever it can to keep that gravy train rolling. But by turning his attention to raising a billion dollar war chest Obama has given up on fixing the economy and is now betting he can buy the election in spite of it. And that's going to take a lot of money.