
the “My Jobs Contest.” (See “When Will Their Walls Come Tumbling
Down,” vol 3 no. 1) Once again in the 1980s and now in the 1990s such
labor relations schemes are being heralded as the savior of a “failing
General Motors” and as a model for the rest of U.S. industry. For
example, the design for GM’s new Saturn plant was premised on GM’s
commitment to making labor more intense rather than introducing labor
saving technology. A spokesperson explains Saturn’s philosophy:
“In Saturn, we believe that to automate...does not make good
business sense. When you consider the capital investment required for
robots or other automated systems, you have to look at the variable labor
cost as an alternative. Automated equipment is limited! On the other
hand, people, if properly trained, can and have taken costs out of an
operation when given the opportunity.” (Joseph F. Malotke, Labor Law
Journal, Aug. 1985, p. 568)
GM’s Saturn model is a reversal of lessons learned over the past 50
years about the social benefits of new machinery. As Howard Foster, a
UAW pioneer in Flint, describing the benefits of modern machinery,
explained: “When mass production methods were introduced in the
automobile industry, the price of cars went down. This was because the
labor time on each car was greatly reduced. Yet we auto workers got
higher wages through our union.” (See “Technology: To Develop or
Stagnate,” vol 1, no 2)
In opposition to similar labor relations experiments, GM auto
workers in Flint, MI, in 1947-48, successfully campaigned for wage
increases that would match inflation. Their battle against GM manage-
ment and the UAW International Union officialdom who opposed such
wage increases, was victorious. Thus pattern setting wage increases
known as COLA (Cost of Living Adjustment) and AIF (Annual
Improvement Factor) were introduced into the UAW-GM contract in
1948. These wage increases made it profitable for GM to introduce new
machinery and update production methods in GM plants.(See “Technol-
ogy, to Develop or Stagnate,” vol 1, no 2)
By 1950, contract language describing the AIF affirmed the social
desirability of using new technology to decrease the labor needed to
produce an auto. The 1950 GM-UAW contract granted workers a wage
increase based “on technological progress, better tools, methods,
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