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| UAW president Shawn Fain (Source) |
Left Voice author James Dennis Hoff demonstrates his astonishing misunderstanding of the labor movement in an article entitled Five Things Shawn Fain and the UAW Could Do Instead of Campaigning for Harris and Walz. The author, a professor of English at City University of New York campus, seemingly has never met a workplace he didn't want to shut down, including his own employer. Had he succeeded in that misguided effort, 40,000 people would have been out of work and without paychecks for an indefinite (probably long) period.
The primary reason for his misunderstanding is Marxism, which on the subject of labor/company relations is completely wrong. In the Marxist world view, the sole goal of labor is to confiscate the capitalist's profit. Marxists see the very existence of profit as a great injustice. Of course they're wrong--capital will have to win a return no matter who owns the means of production. Profit can never be eliminated and the efforts to do so have all led to destruction. See, eg, Cuba, Venezuela, and the former Soviet Union.
But that's not the primary error we examine here. There are two ways to judge a company's success: one can measure total revenue, and/or one can measure total profit, which is some fraction of that revenue. Marxists somehow seem to forget about the revenue part. But it is revenue that is split between wages and profit, and without revenue neither the worker nor the capitalist will make any money.
For example, Walmart's net revenue for the year ending June 30th was $648 billion. The net profit was about $16.3 billion, or 2.34% of revenue. The remaining revenue went employee salaries, rents, utilities, etc. The workers can legitimately fight over Walmart's profit. If they got all of it they'd get a 2.34% raise (after which the company would promptly go bankrupt).
But the elephant in the room--the fact that Professor Hoff studiously ignores--is revenue. Increases in revenue--even small ones--will have a much larger effect on workers' well-being than chipping away at the profit margin. After all, the workers get the lion's share of that revenue.
So the workers and their bosses have one big task in common--maximizing revenue. This is very complicated problem, for it depends on the mix of products sold (keeping the optimal mix of products in stock), then pricing them at a level that optimizes revenue, and finally ensuring that the products are displayed attractively and can be purchased by consumers with minimal inconvenience. A given Walmart Super Center will carry approximately 120,000 stock-keeping units, each of which has to carried in proper quantity and priced optimally.
Both workers and capitalists have a strong interest in maximizing revenue. The capitalists certainly understand that--their profit is a fraction of total revenue. And workers understand that--the security of their employment along with the size of their wages ultimately depends on revenue. The union understands it most of all--the dollar value of union dues collected will depend only on revenue.
Which is why workers are not particularly interested in going on strike. Strikes do not enhance revenue. They hurt the company and union alike. Note that the recent UAW strike was structured in a way that minimized revenue losses.
But Marxists don't get it at all. They think it's all about quibbling over profit. Profit is a sideshow for the workers--it's the revenue that really counts. When it comes to revenue, the workers, the company and the union are all on the same side. Consumers are on the opposite side.
In that light, let's now consider Professor Hoff's five demands on Shawn Fain's union.
1: Build the Fight Against the Far Right
"It is a fool’s errand to believe that we can defeat the nationalist, misogynist, xenophobic, racist, and anti-queer politics of the Far Right by voting," says Professor Hoff. He is correct; it's likely that the "far right" is gonna win the election. Win or lose, any party that can get 70 million+ votes in an election can't really be called "far" or "extremist." They are, in fact, rather mainstream.
Then I'm not sure why you'd want to defeat the "far right." UAW workers manufacture a lot of pickup trucks. Who buys them? Does Professor Hoff own a pickup truck? Almost certainly not because he lives in New York City. The consumers who buy pickup trucks live in suburbs, exurbs and small-towns across America. They live in Trump Country. Indeed, I'll bet a lot more Trump voters own pickup trucks than voters in blue states. Why should the UAW leader purposely diss the majority of his customers? Picking a fight with Trump's voters is definitely not a way to maximize revenue.
When it comes to maximizing revenue, staying out of politics altogether seems like the best bet.
2: Take the Struggle for a Free Palestine into the Workplaces
Surely you're joking, Professor Hoff? How can slaughtering the world's Jewry increase revenue? Even if you think Hamas doesn't intend to kill everybody, I still don't see how siding with a bunch of murderous, nihilist thugs helps make American workers richer. Siding with Israel also probably won't help any. So just stay out of it, which seems to be what Shawn Fain is doing as best he can. He's right.
3: Take Seriously the Fight for a 32-Hour Work Week and Other Progressive Demands
You can take it as seriously as you want, but please remember that the company is already maximizing revenue. A 32 hour work week (with 40 hours pay) is a nice idea, but it's not something that's affordable on a 3% profit margin. Prices would have to go up--by a lot. Such a rise in prices will lower revenue, not raise it. The workers (and the company and consumers) will ultimately come out losers. This is a demand--from the textbook on Free Lunch Economics--that only an English PhD ignoramus could love.
4: Bring Back the Political Strike and Dismantle Taft-Hartley
As said, Professor Hoff has never seen a workplace he didn't want to shut down. And they should shut down for totally frivolous reasons. Eg,
But why shouldn’t nurses and teachers, for instance, be able to go on strike to support their brothers and sisters who drive the buses and trains, and why shouldn’t working people be able to strike collectively to demand basic human rights like access to healthcare, higher education, child care, and pensions?
Most teachers (and most nurses through Medicare & Medicaid) are public employees and get paid at the expense of other workers. It's workers, after all, who pay the majority of taxes that covers their salaries. As the professor admits, a solidarity strike by teachers serves only to stuff teachers' own pockets, especially his demand for more higher education funding. We have way more higher education in this country than we need, and I don't see why the average UAW member should be forced to pay for it. They each already pay thousands of dollars in taxes to support the professors' unions.
5. Break from the Two Parties of Capital and Build a Class Independent Union Movement
Spitting into the wind, Professor Hoff writes,
But more than anything else, the first and most important step that the UAW and every union in the country could take right now to strengthen its membership and prepare for the struggles ahead is to finally break with the two parties of capital once and for all.
Our Trotskyist friends and their predecessors have been demanding this ever since the publication of the Communist Manifesto in 1846. In America it's never happened, and that's because the Marxist model of capitalists and workers permanently locked in a zero-sum fight for profits is just plain wrong. Workers know that. Workers (real ones--not fake ones like professors) understand that it's revenue that butters their bread, and they're not gonna do anything to stop the flow.
That's why Left Voice only numbers about 50 comrades, and not 50 million.
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