Abayomi Azikiwe, PANW Editor at Town Hall Meeting held on Sat., June 14, 2008 at UAW Local 7 in Detroit. The event demanded an immedite moratorium on foreclosures in the state of Michigan. (Photo: Alan Pollock).
Originally uploaded by Pan-African News Wire File Photos
Thousands attend public hearings to voice opposition
by Abayomi Azikiwe
Editor, Pan-African News Wire
After mass outrage throughout the city, the corporate-backed administration of Mayor Dave Bing has suspended plans to make large-scale cuts in public transportation. Several thousand workers, youth, people with disabilities and seniors attended a series of eight public hearings on the proposed cuts in bus services that were held between August 24-27.
Two hearings were held each day sponsored by the Detroit Department of Transporation (DDOT) at various locations throughout the city. It is estimated that 40% of the population in Detroit is dependent upon the buses to get back and forth to work, schools, markets, retail outlets, churches, mosques, medical clinics, hospitals, visits to family and friends as well as social activities.
These hearings were attended by many angry workers who said that they would lose their jobs if the bus transportation cuts were enacted. DDOT plans consisted of proposals to extend wait time, the elimination of at least four routes, the discontinuation of service on certain routes between midnight and 5:00 a.m. and the suspension of all service between Saturday at 6:00 p.m. until Monday mornings at 5:00 a.m.
Over the last several weeks the Bing administration has stated that the city is facing a $300 million deficit. The administration's program to address the shortfall is to layoff 1,000 city workers, to trim benefits for public employees, slash services for residents, including the much needed bus transportation and at the same time escalate police operations aimed at the unemployed and the youth.
Bing recently traveled to Chicago to hold secret discussions with the bond agencies of Standard & Poor, Moody's and Fitch Ratings. In January 2009, the city's bond ratings were reduced to junk status, making it more expensive for the municipality to repay existing loans and acquire additional credit.
During the week of August 24 the bond ratings were lowered again. According to the Detroit Free Press Standard & Poor "dropped tlhe city's ratings from BBB and BBB to BB for two kinds of debt because the city had failed to meet promises to eliminate its deficit and turn in its annual audit on time, because of the local economy and because of perceived instability in the city with multiple mayoral elections this year." (Detroit Free Press, August 30, 16A)
Also during the last week in August unemployment figures were release for the city of Detroit indicating that the current rate of joblessness was officially at 29.4%. This number does not reflect the growing ranks of the discouraged workers who see no prospects for finding employment in the city. In addition, the figures do not reflect the level of underemployment where workers are not earning enough money to meet their basic obligations for maintaining a household.
Foreclosure rates are escalating as well as evictions from rental properties. Vacant homes, apartments, abandoned factories and small businesses can be seen throughout the city of Detroit and to a growing degree, the suburbs are facing the same problems.
The Detroit Free Press reported on August 30 that "Detroit began its fiscal year (July 1) with less than $20 million in the bank--not even enough of a surplus to pay the roughly 13,000 employees who cost the city $50 million a month in salaries and benefits." Bing, a former Detroit Pistons basketball star and later businessman who owns a Steel corporation on the city's east side, is allowing the bond rating agencies, banks and corporations dictate the terms of how the deficit should be addressed.
Public transporation and city workers targeted
In a document issued by DDOT at the public hearings held during the week of August 24, it paints a grim picture of how the current economic crisis will impact transportation services in Detroit and throughout the United States. Rather than maintain services for workers, students, people with disabilities and seniors, the banks and corporations are demanding that they bare the brunt of layoffs and cuts so that the financial sector can be paid extortise interests rates on loans and municipal bonds.
An executive summary of the DDOT report explaining the Bing administration's rationale for the cuts, states that "The securement of funding to provide critically needed public transportation services has become a challenge for transit agencies across the country. The Detroit Department of Transportation (DDOT) and many other transit agencies have reduced or eliminated service, raised fares, and laid off workers." (DDOT Proposed Service Changes Effective September 26, 2009)
This report continues by stressing that "The economic downturn faced by the nation is a contributing factor, but there are other factors that have affected the services that are provided to public transit users." The document then goes on to cite revenue shortfalls, the city budget deficit, a decrease in state transportation funding, no dedicated funding source for public transportation, the restrictions placed on federal transportation dollars, and higher operating costs as key factors in the crisis facing the city of Detroit.
Despite all of these reasons given for cutting bus services, the thousands who rallied and testified at the public hearings were not accepting the city's proposals as legitimate or warranted. People pointed to the fact that banks and corporations have been bailed out to the tune of trillions of dollars. They asked where was the economic recovery funds that were supposed to be sent to the state and city by the Obama administration.
By the second day of the hearings, it became quite obvious that there would be political repercussions to cutting bus service at this juncture in the city. Bing must stand for re-election in November for a four year term of office. His opponent, Tom Barrow, made appearances at the hearings and was cheered by the people in attendance. Yet most workers realize that Barrow, who is also a businessman, does not have a real alternative to the current crisis facing the city of Detroit.
However, the outpouring of militant anger is relfective of the broad discontent existing among working people in Detroit and throughout the country. The Obama administration and the majority Democratic Congress in Washington was elected through the popular anger of people who are tired of permanent war and government for the rich and powerful. Yet, absent in this scenario is a strong mass independent working class movement dedicated to improving the conditions for the majority of people throughout the country, which are in fact worsening.
More Attacks on the Workers in the Pipeline
There have been vicious attacks launched against the city unions and the Detroit Federation of Teachers over the last several weeks. Workers are being portrayed by the corporate press and the Bing administration as overpaid, receiving to many benefits such as healthcare, vacation time, paid sick days and pensions. However, in comparison to other sectors of the economy, city employees and teachers have suffered tremendous losses over the last few years.
According to the media, the salaries and benefits won by city workers and school employees as a result of years of protracted struggles are the underlying causes for the economic crisis facing Detroit. Such arguments could not be further from the truth. The city of Detroit has suffered immensely as a result of the economic policies carried out by the ruling class and the government in the U.S. Even the corporate media admits that the proposed cuts by the city administration would only result in savings of less than $10 million.
Trillions of tax dollars and federal reserve credit lines have been extended to the banks, corporations and insurance companies since 2008. The ongoing wars in Iraq, Afghanistan, Pakistan, Colomiba, Somalia and other geo-political regions have cost the working class additional trillions in public money. There is no refernce in the corporate media to the tremendous watse in implementing the programs of the capitalist ruling class and the Pentagon.
The corporate press which is backing the Bing administration is constantly holding the threat of bankruptcy and receivership over the workers. They are telling the unions everyday that if they do not accept the broad concessions and layoffs that the city will become insolvent.
In the Detroit Free Press on August 30, the ruling class press put forward the following alternatives as the only "possible remedies" to the crisis. According to the newspaper "Detroit's financial options remain limited, experts say. Two options are bankruptcy with a receiver being in charge, and having the state appoint an emergency financial manager."
The "Emergency Financial Manager" would be appointed by Governor Granholm and would be tasked with solving the financial crisis. The appointee would be mandated to renegotiate union contracts. In addition, with state approval the state manager could force the city into bankruptcy.
In regard to bankruptcy, a judge typically appoints a receiver who acts under the guidelines of federal bankruptcy law. The receiver would be tasked with preserving private property during the bankruptcy period. Also, in bankruptcy, union contracts can be abrogated in favor of the creditors and the city administration.
There has been resistance to these proposals by the workers. Leamon Wilson, chairman of the AFSCME locals, told the Free Press that "You can't lay us off and then privatize the work. He's (Bing) doing it with an attitude and not giving a damn." (Detroit Free Press, August 30)
Even though the Bing administration backed away from the public transportation cuts, 205 workers received pink slips on August 28. The administration refused to say in which departments the workers would be laid off.
In regard to the DFT, the Detroit Board of Education in an effort to avoid a strike, extended the existing contract until the end of October. At least two thousand teachers and school employees have been threatened with layoffs. An Emergency Financial Manager, Robert Bobb, has already been appointed for the Detroit Public Schools. Bobb also has been attacking the school employees and accusing the workers of being corrupt. A number of employees have been indicted for petty crimes. These efforts by Bobb are being backed up by Governor Granholm and Wayne County Prosecutor Kim Worthy.
The Moratorium NOW! Coalition to Stop Foreclosures, Evictions and Utility Shut-offs attended the public hearings on the proposed transporation cuts. Coalition members distributed thousands of flyers inviting the people to a mass organizing meeting on September 12 at the Central United Methodist Church downtown at 11:00 a.m. The purpose of the meeting is to declare an economic state of emergency in order to demand a halt to the use of working people as scapegoats in the current capitalist meltdown.
Members of the Moratorium NOW! Coalition are proposing further mass actions targeted at the financial district in downtown Detroit. The Coalition is saying that the banks should impose a moratorium on debt service payments until the financial crisis abates, allowing city workers to maintain their jobs during the current period.
The September 12 mass meeting will also mobilize people for the upcoming National March for Jobs scheduled for September 20 in Pittsburgh. The march, which is being organized by the Bail Out the People Movement (BOPM), will kick off a week of protests surrounding the G20 Economic Summit being held later that week in Pittsburgh.
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Abayomi Azikiwe is the editor of the Pan-African News Wire. The writer attended the public hearings on the proposed cutbacks in public transportation in the city of Detroit.
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