Opening Statement of the Honorable Emanuel Cleaver, II
Opening Statement of the Honorable Emanuel Cleaver, II
December 6, 2005
Hearing on "The American Automobile Industry in Crisis: Threats to Middle Class Jobs, Wages, Health Care, and Pensions"
(Washington, DC)-Thank you for joining us and participating in this exciting E-Hearing. Together, Americans face tumultuous and electrifying times. As we move forward into the 21st Century, Congress is now able to use the American invention, the Internet, as a medium for individuals from all over our nation to gather and directly voice their opinions on legislation and discuss how current events directly impact daily life. Through the week of this E-Hearing, the American people can collectively lift their voices and speak directly to their U.S. Representative, others Members of Congress, and fellow citizens from across the country who have the same troubles and problems. I look forward to reading their testimony. This new medium is exciting to use because it opens new possibilities to directly connect legislators and individuals.
The subject of this week's e-hearing both angers and saddens me because our middle class has been put on the endangered species list! The recent bankruptcy of Delphi along with the announcements by General Motors Corp. and Ford Motor Co. of plant closings has made poignant the slow destruction of the American middle class. The current economy and a culture of outsourcing jobs are slowly killing American jobs that guarantee a livable wage and decent benefits. As thousands of workers are losing their jobs in mass layoffs-General Motors just announced 30,000 layoffs and Ford announced 7,500 layoffs-what is also eradicated are workers' benefits. The employees, who are the backbone of these companies, are in a Catch-22. First, employees and their families are taking pay cuts, giving up health care benefits and basic care, and their pension benefits are being pirated in order to keep facilities open. After the pay and benefit cuts, Americans workers are still losing their jobs because plants and facilities across the nation are being closed even after workers have given up their health care and retirement benefits.
There are now 1.4 million more unemployed workers than in January 2001. The cost of health insurance has risen nearly 60%, and yet over the same period of time, wages have increased only by 12%. Our federal minimum wage is an unlivable $5.15 an hour. Delphi employees only make $10.51 an hour, so a full-time worker would make $20,231.75 before taxes. While workers are bearing the cuts, the executives are getting corporate golden parachutes and year-end bonuses.
I have seen first-hand the value a strong manufacturing base can have for a community. Surrounding my Congressional District are two auto plants, the Ford Claycomo Plant and the General Motors Fairfax Plant. While these plants are not in my district, a large percentage of their employees are my constituents. I remain committed to every middle class worker in the manufacturing industry. America was built by manufacturing. Together, we must work together to keep jobs, benefits, and programs that ensure health care and the ability to live instead of slicing away at workers' ability to achieve the American Dream.
Again, I welcome the chance to participate in this innovative forum where we can hear directly from those most affected by these ruinous cuts. I hope this e-hearing will help us find real solutions to help save the American middle class. Thank you for joining us.
http://www.house.gov/apps/list/press/mo05_cleaver/ST6DEC05.html