Download PDF of this full issue: v4n2.pdf (7.7 MB)

Mass Layoffs

By VVAW

Along with the growing "shortage" of fuel, the American people are beginning to suffer another shortage...lack of jobs. In December, 1973 alone, 100,000 people were permanently laid off. As recently as last October, officials in Washington were applauding an unprecedented growth in the number of jobs. Now, these same officials are blithely predicting an unemployment rate of 8% for 1974.

Most of the blame for this sudden turn-about in employment has been laid on the fuel "crisis." Almost all the industries that are being hardest hit, rely heavily on the fuel industry. The auto makers, particularly the Big 3, have slashed employment by the thousands. General Motors, the largest of the auto makers, shut down 16 plants in December, temporarily laying-off 137,000 workers. Thirty-eight thousand of those laid-off will not be called back to work. The other big auto makers, Ford and Chrysler, have permanently released 10,000 workers each. The hardest hit by these employment cut-backs are women and Third World people. The auto makers have never been that "big" on equal hiring practices. It took many hard years for people of color and women to win the right to equal employment. Now, the fuel "crisis" has destroyed their hard won right, giving credence to the saying, "Last to be hired, first to be fired!"

White workers are not immune, though. All the major Airlines have furloughed pilots, stewardesses, flight attendants and ground crew. Over 5,000 men and women in the industry have been released, mostly white, highly paid pilots and air crews. Again, the fuel "crisis" is to blame, or so says the industry. However, recent statements by oil industry officials contradict this. Texaco reported that it has more fuel in this quarter than it had for the same period in 1973.

The job situation gets bleaker as the new year grows older. The U.S. Department of Labor says that upwards of 7 million people will be unemployed in 1974 with little relief in sight. The breakdown of job losses is frightening. Major chemical producers and users say that 1.6 million workers will lose their jobs in that industry, and 65 million dollars will be lost in production. The plastics industry reported that they will probably lose 560,000 jobs and $23 billion in finished products. The National Association of Manufacturers says that they will have to end jobs for almost 1 million people.

Those that still have jobs will not be able to keep their heads above water. The cost of living has gone up so steeply, that most working families can barely make ends meet. A year ago, a good side of bacon might cost $1.00, but today that same side is over $1.60. Milk used to cost $1.10 a gallon but has now jumped past $1.40. Name any product or any item of food and its the same story. Although wages were increased an average of 6.7% in 1973, the average buying power of a married worker DECLINED by 3.3%. Put simply, the dollar is less valuable this year than last. The cumulative effect of this inflation over the last 5 years on the cost of living reads out to a whopping 150% average rise in prices since 1969.

While the majority of the American people eat hamburger (or worse) night after night, the men who head up the oil industry ride high on the hog. While the wage has been restricted to a mere 5.5% increase under Phase 4, the rate of profit for the big ten oil companies was at least quadruple that. Exxon had a 59% increase in profits over 1972, and Gulf had a 60% rise. The lowest increase was Conoco, with a "mere" 24% profit increase. In the 3rd quarter of 1973, July through September, these money sucking fiends made 1.9 billion bucks! Now, one would not expect the Board of Directors of these companies to put themselves out of work, and since the system works for them, why get upset because the people are hurting.

The picture being drawn gets even worse when one takes a look at President Nixon's economic policies. Through the Cost of Living Council, Nixon has kept a tight lid on any proposed wage increases. Not so for the oil industry. Bouncing around advisors like so many golf balls, Nixon has allowed major concessions to big business, the latest being the lifting of restrictions on shale oil exploration and environmental controls. King Richard would have the American people believe that these restrictions are stopping the oil companies from developing new oil resources, when actually the resources already available have been neglected by oil companies. Nixon has moved to curtail fuel usage by workers and poor people when 70% of fuel consumption comes from heavy industry. Why is the burden being placed on the poor? Well, maybe because the owner of Gulf Oil contributed $1 million to Nixon's campaign; or because the owners of Texaco gave $55,000; or because ITT gave $400,000; or the Milk deal. Maybe because the rich and powerful do not care what happens to Blacks, Chicanos, Indiana, Asians, poor people, women or workers. Maybe because the rich and powerful can buy a president, while the people can only vote for one.

Throughout American history, it is the common folk that bare the burden of every crisis, while the captains of industry consolidate their holdings and battle for greater profits. The heads of government cannot help but support this because that's what America's all about... profit. The American people can reject this by rejecting Richard Nixon as president and the system which allows him to be bought.

KICK NIXON OUT!!!!

UNITY-STRUGGLE-VICTORY