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How Detroit Went Bottom-Up

How Detroit Went Bottom-Up
In the spring of 2005, David Stockman at last reaped the reward of the monopolist. Stockman, who once served as Ronald Reagan's budget director, spent two decades on Wall Street preparing for this moment. After stints at Salomon Brothers and the Blackstone Group, Stockman in 1999 set up his own private investment fund, Heartland Industrial Partners. Of all Stockman's efforts, his most audacious centered on a firm named Collins & Aikman. When the time came to choose his first target, Stockman took aim at Chrysler. Not many years ago, it was all but unthinkable that a mere supplier would dare to hold up one of the Big Three in such a blatant manner. Unfortunately for Stockman, he appears to have mis-timed his play for a big payday. In and of itself, Stockman's stickup of America's automotive industry is not an especially important event. This type of consolidation is not limited to the automotive sector. Vertical integration was neither a necessary nor natural form of organization. PinIt

Anesthetist job fight reflects health outsourcing trend Almost 70 Metro Detroit nurse anesthetists are set to be out of work Friday due in part to a nationwide trend in which hospitals are increasingly contracting out to private firms entire departments to trim costs. Sixty-eight certified registered nurse anesthetists at St. John Providence Health System hospitals in Southfield and Novi expect to be out of a job because they didn’t agree by a 11 p.m. Thursday deadline to work for a private vendor instead of the health system. Southfield attorney David Shea, who represents the group calling itself the “Michigan 68,” said nurse anesthetists were privatized at McLaren Macomb Hospital and Detroit Medical Center hospitals without acrimony because employees were included in the process. Nurse anesthetists at the Providence-Providence Park hospitals in Southfield and Novi were told in mid-October they had until the end of 2015 to apply for jobs with PSJ Anesthesia PC. According to a St. Sixty-eight of 74 nurses affected are fighting the plan.

Whites moving into Detroit, blacks moving out as city shrinks overall - Crain's Detroit Business White people are moving back to Detroit, the American city that came to epitomize white flight, even as black people continue to leave for the suburbs and the city's overall population shrinks. Detroit is the latest major city to see an influx of whites who may not find the suburbs as alluring as their parents and grandparents did in the last half of the 20th century. Unlike New York, San Francisco and many other cities that have seen the demographic shift, though, it's cheap housing and incentive programs that are partly fueling the regrowth of the Motor City's white population. "For any individual who wants to build a company or contribute to the city, Detroit is the perfect place to be," said Bruce Katz, co-director of the Global Cities Initiative at the Washington, D.C.-based Brookings Institution. "You can come to Detroit and you can really make a difference." In the three years after the 2010 U.S. The city's black population was nearly 776,000 in 1990. Elizabeth St. St.

How Detroit, the Motor City, turned into a ghost town | US news Try telling Brother Jerry Smith that the recession in America has ended. As scores of people queued up last week at the soup kitchen which the Capuchin friar helps run in Detroit, the celebrations on Wall Street in New York seemed from another world. The hungry and needy come from miles around to get a free healthy meal. Though the East Detroit neighbourhood the soup kitchen serves has had it tough for decades, the recession has seen almost any hope for anyone getting a job evaporate. "Some in the past have had jobs here, but now there is nothing available to people. Outside his office the hungry, the homeless and the poor crowded around tables. Officially, America is on the up. But for tens of millions of Americans such things seem irrelevant. Added to that shocking statistic are the millions of Americans who remain at risk of foreclosure. For them the recession is far from over. There is little doubt that Detroit is ground zero for the parts of America that are still suffering.

Crain's Detroit Business : Subscription Center Photo by St. John Providence Hospital Most of the certified registered nurse anesthetists at St. John Providence Hospital and Medical Center in Southfield and St. John Providence Park Hospital in Novi (pictured) lost their jobs Dec. 31, caught in a push by area hospitals to reduce costs by outsourcing. The 66 nurse anesthetists who lost their jobs Dec. 31 at St. Over the past couple of years, a number of hospitals in Southeast Michigan have signed contracts with regional or national anesthesiology groups that employ both CRNAs and anesthesiologists. The outsourcing of hospital employees — also including housekeeping, food service, laundry, information technology, supply management and emergency services — is driven by the broader need to reduce costs and improve efficiencies because of federal and private payer reimbursement cuts stimulated by the Patient Protection and Affordable Care Act, or Obamacare. Jean Meyer: St. St. In the Providence case, St. "St. Other examples The drivers

The rise and fall of Detroit: A timeline Sign Up for Our free email newsletters On Thursday, Detroit made history — and not in a good way. The heart of the U.S. auto industry and home to the Detroit Tigers, Eminem and the White Stripes, Motown, and (maybe) Jimmy Hoffa's body became the largest city ever to file for bankruptcy. July 24, 1701Antoine de La Mothe Cadillac establishes a French settlement, Fort Ponchartrain du Détroit (the strait), along with 100 French soldiers and an equal number of Algonquins. 1760Britain wins the city from the French. 1796U.S. forces capture Detroit from the British. Feb. 1, 1802Detroit becomes a chartered city, covering about 20 acres. 1827Detroit adopts its forward-looking city motto: Speramus Meliora; Resurget Cineribus (We hope for better days; it shall rise from the ashes). 1850Bernhard Stroh opens Stroh Brewery Company. The Stroh Brewery Company, circa 1864. June 4, 1896Henry Ford test drives his first automobile on the streets of Detroit. 1899Ransom E. 1959Berry Gordy founds Motown Records.

We saved the automakers. How come that didn’t save Detroit? It's common for headline-writers to refer to the Big Three automakers — Ford, Chrysler, and GM — as "Detroit." The monument to Joe Louis in Detroit, known as "The Fist." (Paul Sancya/AP) But that metonymy is misleading in a very important way. That helps explain why Ford, Chrysler, and GM have all been thriving since the auto bailout in 2009 while the city of Detroit continued to deteriorate and has now just declared bankruptcy. From 1910 to 1950, Detroit's economy was synonymous with car manufacturing. Even then, much of the auto industry's industrial base wasn't in the city proper. But starting in 1950, automakers began moving more and more of their operations further away. Detroit's auto jobs kept vanishing as the Big Three lost market share to foreign automakers starting in the 1970s. All told, the number of manufacturing jobs in Detroit proper fell from 296,000 in 1950 to just 27,000 in 2011. Today, there are only two auto factories left in Detroit. But that's it. Wonkbook newsletter

Ford adding plants, jobs in Mexico Susana Gonzalez | Bloomberg | Getty Images A file photo showing the assembly line at the Ford Motor Co. plant in Cuautitlan Izcalli, Mexico. "When I am president, we will strongly enforce trade rules against unfair foreign subsidies, and impose countervailing duties to prevent egregious instances of outsourcing." Trump went on to call for renegotiating NAFTA "to create a fair deal for American workers." Joe Hinrichs, president of Ford of the Americas, told CNBC that the new plant does not mean Ford is moving jobs out of the U.S. "We're proud to be an American company," he told CNBC. The Mexican plant, in San Luis Potosí state, will build small cars that will be exported for sale in the U.S. and other countries, though the automaker has not decided which vehicles will be built there. The company already has two final assembly plants and one engine plant in Mexico.

With Unions Disappearing, What’s the Future of the Worker Voice? Above, watch the full conversation, moderated by Harold Meyerson. Labor union membership and strength is in a free fall. From 1954 to 2014, union membership fell from 34.8 percent of wage and salary workers to 11.1 percent. Half of the states have adopted “right to work” laws. Moderator Harold Meyerson, editor-at-large for The American Prospect and Washington Post columnist, began by asking David Rolf, president of SEIU 775 and, according to Meyerson, the person who “has organized into unions probably more workers than anyone else in the past 15 years,” why he thinks unions are “something of a dead end.” “The legacy model of the American labor movement has now passed its own strategic inflection point where rescue is no longer an option, and we have to begin to plan for what is next,” Rolf said. What’s next is a move away from traditional unions and toward alternative worker organizations, or “alt labor.” But others decided to launch the Campaign for Fair Food.

If Labor Dies, What's Next? Imagine America without unions. This shouldn’t be hard. In much of America unions have already disappeared. In the rest of America they’re battling for their lives. Unions have been declining for decades. Related Content What Does Labor Need to Do to Survive? Harold Meyerson talks to four movement leaders about the future of unions in America. A Brief History of American Labor Spotlight: America without Unions Harold Meyerson on the decline of America's labor unions—and what the future of workers' rights looks like without them. Following the 2010 elections, a number of newly elected Republican governors and legislatures in the industrial Midwest, long a union stronghold, moved to reduce labor’s numbers to the trace-element levels that exist in the South. Within the labor movement, a number of leaders and activists quietly shared the same pessimism. For many Americans, the death of labor would doubtless seem the natural order of things, the dinosaur finally shuffling off to the graveyard. V.

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