Congressman John D. Dingell

Washington, DC - Today Congressman John D. Dingell (MI-15) joined Michigan Governor Jennifer Granholm and Congressman Dale Kildee (MI-05) in participating in an online hearing titled “The American Auto Industry in Crisis: The Threat to Middle Class Jobs, Wages, Health Care and Pensions.” The hearing will gather information and create a record about events unfolding at Delphi, General Motors and the future of the American auto industry.

Dingell encourages employees or retirees of Delphi Corporation or General Motors to send testimony of 500 words or less to autocrisis@mail.house.gov or to use the official form found on the e-hearing website: http://edworkforce.house.gov/democrats/autocrisis.html. Testimony may be posted online. Witnesses must include their name, address, phone number, and email address to have their statements included in the record. The information is used for verification purposes; but only the name and hometown will be posted along with each individual’s testimony. Witnesses should discuss how the announced changes at GM and Delphi could affect their lives.

Dingell submitted the following statement to the e-hearing this afternoon:

“I would like to thank my colleagues on the Committee on Education and the Workforce for holding this e-hearing. My good friend from Michigan, Dale Kildee, has been a steadfast supporter of workers and their families for many years and I thank him for his leadership.

“This e-hearing begins on the heels of the Administration’s statement of its intention to give our auto industry the cold shoulder. Just the other day, White House National Economic Council Director Allan Hubbard said about the auto industry:

‘They don’t need a bailout. All they need is time to restructure, and we’re confident they’ll be successful. Obviously, GM has some big challenges right now, primarily because they make automobiles that are less fuel-efficient. It is unfortunate that GM is going to be laying off [employees] at the same time Toyota and other companies are expanding in the U.S. The important thing is that the overall economy is strong.’

“I think Mr. Hubbard and his friends in the Administration must live in a very different reality than the rest of us. I’ve not heard anyone in the U.S. auto manufacturing sector ask for a bailout. We can all agree that manufacturing is changing rapidly and consequently the industry and its workforce must adapt – and so, too, must our government policies. The auto manufacturing sector can compete in a global marketplace – as long as it is given a level playing field. Our automakers aren’t asking for a handout, but they do need the government to act as a referee and ensure they are able to compete fairly. When our competitors subsidize their exports through manipulative trade policies, the playing field is not level. When quotas, tariffs, and restrictive laws minimize the entry of American cars and tucks, the playing field is not level. When the United States follows WTO guidelines and the Europeans, Japanese, Chinese, and Koreans ignore them, the playing field is not level.

“Henry Ford understood that his workers needed to make enough money to buy the cars they made. Unfortunately, Mr. Hubbard and the Administration don’t seem to understand that need – or the need to even have an American company like Ford or GM making cars. That is a sad state of affairs, but should come as no shock to those who remember that Mr. Hubbard’s predecessor, Gregory Mankiw, thought that burger flipping counted as manufacturing.

“The notion that the industry does not need help is not only callous, it demonstrates a complete ignorance of the challenges faced by our auto manufacturing sector and the way they will affect the future of this country. As David Cole, the Director of the non-partisan Center for Automotive Research points out, many of the issues facing our auto manufacturers are the same as those that tore apart other sectors faced with tremendous legacy costs such as the domestic steel and airline industries.

“Furthermore, for Hubbard to say that “all they need is time to restructure” is to completely brush aside the thousands of hard-working Americans who will be left out in the cold during the restructuring process. Delphi has announced that it will eliminate 24,000 jobs, GM 30,000 and now as many as 30,000 will likely be shed by Ford Motor Company. In the past month, we have learned that nearly 90,000 jobs will be lost over the next few years. We cannot and should not turn our backs on these people – they are not only our constituents, but our friends and family.

“We must develop policy that does not penalize companies for providing their workers with decent wages and benefits while rewarding those who pay low wages or whose healthcare and pension costs are subsidized by foreign governments. Right now, the deck is stacked against American autos – each vehicle they manufacture costs $1500 in employee healthcare and pension benefits.

“We need to address these issues. Nearly two years ago, the Democratic Members of our Michigan Congressional delegation sent the Administration a detailed set of policy recommendations for improving the playing field for our manufacturers. We are still waiting for a response. Governor Granholm recently met with the delegation to discuss proposals to rejuvenate our manufacturing base and train and prepare future generations to innovate and modernize American industry. Democrats and Republicans were able to agree on a number of changes in policy that would give our automakers a more level playing field on which to compete.

“I don’t expect to agree with my colleagues on either side of the aisle all the time. Michigan’s Democrats and Republicans will certainly have different ideas from time to time about how to address particular issues, such as the valuation of China’s currency or the opening of Japan’s auto market. But the most important thing is that we cooperate and address matters which affect all of our constituencies. What we need now is for the Executive Branch to engage in this matter – whether with it’s with us, or directly with industry leaders, the United Auto Workers and the millions of American citizens they represent. What we don’t need is a dismissal by government-paid academics who talk about bailouts and burgers rather than the real issues affecting U.S. auto manufacturers, their workers and their retirees.

“Many of my constituents in Michigan’s 15th Congressional District have contacted me to tell their personal stories and I am pleased that this e-hearing will give them the opportunity to make their voices heard across the nation. I hope that this e-hearing will draw attention to the fact that “30,000 jobs” means “30,000 people” – husbands and wives, children and grandchildren, families who have worked on the shop floor for generations. Their many years of dedicated service have made the American economy the most powerful in the world.

“I thank the Committee again for holding this forum and for their hard work on behalf of working families.”