Friday, January 16

Companies use Sept. 11 to their benefit


Businesses make war an excuse to lay off workers, ward off losses

Illustration by ED OYAMA/Daily Bruin   Shirin
Vossoughi
Vossoughi encourages you to speak your mind to
her at [email protected].

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He is strong, determined and utterly American. He risks his life
to save businessmen who earn as much in a few days as he will in
his entire life. He is the brave fireman, the symbol of a unified
nation re-embracing working-class heroes.

From all sides of the media, we are confronted with images of
American workers appreciated for the sacrifices they make to keep
this country running. But a look at the reality of what’s in
store for the majority of working-class people recalls an important
idea: don’t believe the hype.

Since Sept. 11, over 638,000 people have been laid off, adding
to the 1.1 million let go in 2001. As economist Bruce Steinberg
puts it, “The economy is hemorrhaging jobs” (L.A.
Times, Nov. 3). While the recently unemployed scramble to pay bills
and put food on the table, top CEOs and our elected officials in
Washington are busy with their own favorite hobby: war
profiteering.

Many companies are shamefully using Sept. 11 as an excuse to lay
off workers, placing blame on the economic meltdown and plummeting
of sales. Scores of businesses have cited the attacks as
dramatically affecting their sales. Yet many companies witnessed a
downturn long before the attacks. As L.A. Times staff writer James
Bates states, “Not since the Persian Gulf War a decade ago
has business latched on to a single uncontrollable event to account
for lousy financial results” (Oct. 5).

In fact, the trend in downsizing has been in effect for decades.
Since 1968, the sales of top manufacturing companies have climbed
94 percent while employment has seen a reverse trend (Globalization
Claims, 2000). Some of this is due to technological advancement,
yet the profits of most firms have ballooned while they provide
fewer and fewer jobs.

In wartime, legitimate demands made by labor are declared
selfish. Service workers who get pink slips are asked to sacrifice
in the name of the American cause while top business people refuse
to lose a dime.

High unemployment rates also benefit management, who can
threaten “unruly” workers (those that make ridiculous
demands like health care or minimum wage) simply by pointing toward
the line of people ready to take their place.

Of course, some of the economy’s slowdown can undoubtedly
be contributed to Sept. 11. However, the Bush
administration’s so-called “economic stimulus
package” is only stimulating one thing: corporate profits.
Just look at the goodies in store for big business ““ $1.4
billion for IBM, $833 million for General Motors, $671 million for
General Electric, and the list goes on.

Many expected bailouts for some sectors ““ like the
airlines. Yet of that $15 billion gift, not one cent is designated
to help laid-off workers. As flight attendant Joshua Freeze said,
“If the airlines simultaneously save money through layoffs
and concessions and make money from the government, where will the
money go? Into the pockets of major shareholders?” (Labor
Notes, September, 2001)

In Louisiana, where almost four out of five workers are
ineligible for unemployment benefits, some are pushing for more
insurance as a means to stimulate the economy. The Bush
team’s response? Too expensive. Yet billions flow incessantly
for the military to defend the same people our government somehow
cannot afford to help pay their bills in a time of need.

While many face financial difficulties, the recent rash of
layoffs disproportionately affects workers of color. Whereas the
national unemployment rate reaches 5.4 percent, African Americans
see a 9.7-percent unemployment rate and Latinos, 7.2 percent. In
addition, while the treatment of undocumented workers has almost
always been unfair, tightened immigration and increased threats of
deportation make organizing for basic rights an even greater
challenge.

Heightened security may also affect minorities as many employers
seek out companies that screen job applicants. As Mark Huber, chief
executive of one such firm said, “People of Middle Eastern
heritage could face hiring discrimination because of the
involvement of people from the Middle East in last month’s
terrorist attacks” (Omaha World-Herald, Oct. 29).

The commercials tell us we are all in this together, that
Americans have an amazing ability to unite in the face of
adversity. Yet company leaders and our elected officials, who have
the power and resources to help working class families survive,
choose instead to profit from a tragedy. As Don Hazen of Alternet
puts it, “We have our hands on our hearts and they’re
picking our pockets.”

While many American workers are hurt by the economic downturn,
such a slump reverberates to affect workers all over the world. In
Mexico, many maquiladora workers face layoffs as the demand falls
for products destined for the United States. Increased security at
the border and the threat of growing wages have also prompted some
maquiladora owners to move to China, where labor costs are a
fraction of those in Mexico ( L.A. Times, Oct. 8). Again, workers
are penalized while company heads do whatever it takes to maintain
profits for themselves. Is there a pattern here?

As more and more people face unemployment, let us hold our
leaders accountable for their rhetoric. We must demand an increase
in social spending and efforts to alleviate pressure on those whose
hard work fuels the economy. Despite calls for national sacrifice,
we can’t afford it.


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