Thursday, January 13, 2011

Torino vs. Detroit

The comparison between the two "twin" cities is interesting albeit difficult.
I've spent enough time in Detroit to build my own opinion. Imagination efforts for those who have never seen both places are insufficient to confront Detroit and my hometown Torino, but bringing it down to the concept of "Motor Cities" there are notable historical similarities, among which we can find the growth and welfare revolving around the automotive industry, and the relevant social impact due to consistent immigration.
The collapse of the automotive market underlines how impossible is for Michigan to convert its almost-exclusive economy. Most of the assembly plants are closed and abandoned, and the industrial parks of the supply chain are dramatically deserted.
Those who could, have left already. The entire area is devastated as well as hope and it's not surprising that the GM Orion Plant workers have signed-off the agreement through which they accept the hourly wage of $17 and $28 - for new hired and existing workers respectively. The agreement also includes benefit cuts to health insurance and other. Such agreement appears like an insult bringing the employer/worker relationship back to feudal times, but it's the only feasible solution for those who can have a job again.
There would be a lot to say but I'm not discussing the causes, the missed alternate policies or the consequences of such a step behind that, tonight, is going to hit the news at FIAT Mirafiori (Torino) plant. The workers will vote and the prize at stake is that if "YEA" will prevail, FIAT will invest 1 BEuro into the plant and keep it alive. On the other hand, a "NAY" result will dictate the plant shutdown.
"YEA", although the Mirafiori facility won't produce high volumes, would give hope to its 5,500 direct workers plus around 85,000 in the supply chain located in the Italian northwest region. This would anyway set a precedent for the retrogression of many other work contracts, an epoch-making change.
The hard times are coming, not just in Detroit.
"NAY" would be worse. Like the Irish Potato Famine had moved masses in mid XIX century and the Dust Bowl - which laid the foundations of the Great Depression - had forced hundred of thousands to relocate, the disappearing of automotive jobs in Italy - FIAT is the largest domestic industrial company - will have huge consequences.
Let's find a spot on the toy planisphere on which to put our finger before moving over. Hard to find one.
We have too much and ought to seek a simpler life.

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