Archive for the ‘economy’ Category
Wednesday, November 24th, 2010
Real men, real human beings, with feelings and families, fought and died at Gettysburg to preserve the Union, to ensure, as their president, Abraham Lincoln, would say later, that “government of the people, by the people, for the people, shall not perish from the earth.”
Perversely, afterwards, non-humans commandeered the constitutional amendment intended to protect the rights of former slaves. Corporations wrested from the U.S. Supreme Court a decision based on the 14th Amendment asserting that corporations are people with rights to be upheld by the government – but with no counterbalancing human responsibilities to the republic. No duty to fight or die in war, for example. Earlier this year, the Supreme Court expanded those rights – ruling that corporations have a First Amendment free speech right to surreptitiously spend unlimited money on political campaigns.
Today, Lincoln would have to say America’s got a government of the people by the corporations, for the corporations.
The proposed trade agreement with South Korea illustrates corporate control of government for profit. It’s the same with efforts to revive the moribund trade schemes former President George W. Bush also negotiated with Panama and Colombia, the world’s most dangerous country by far for trade unionists, with 2,700 assassinated with impunity in the past two decades, 38 slain so far this year.
Nobody likes these trade deals – except corporations. They’re all modeled on the North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA), both of which killed American jobs while giving corporations new authority to sue governments (read: taxpayers) for regulations – like environmental standards – that corporations contend interfere with their right to make money.
The Economic Policy Institute estimates that the South Korea so-called Free Trade Agreement (FTA) would cost America 159,000 jobs and enlarge its trade deficit by $16.7 billion in its first seven years.
Americans, now suffering though corporate-caused 9.6 percent unemployment, know a deal when they see one – and the South Korea FTA is not one. In a September poll by NBC News and the Wall Street Journal, 53 percent of Americans said so-called free trade agreements have injured the country. Only 17 percent said those trade schemes benefited the United States. Disgust with these deals spans party lines, including Tea Partiers, 61 percent of whom said they’re bad for America.
Many politicians, particularly Democrats, abhor the schemes as well. In July, just after President Obama announced that he would try to get the South Korea pact passed, 110 House Democrats described their disdain for the deal:
“We oppose specific provisions of the agreement in the financial services, investment, and labor chapters, because they benefit multi-national corporations at the expense of small businesses and workers.”
In addition, during this fall’s midterm election campaign, 205 candidates, Republican and Democrat, ran on platforms condemning job off-shoring and unfair trade, and house Democrats who ran on fair trade were three times as likely to survive the GOP “shellacking” as Democrats who supported so-called free trade schemes.
Significantly, the South Korean public and some South Korean politicians also oppose the trade proposal. In the week leading up to the G-20 meetings in Seoul, trade unionists, farmers, peasants and students filled the streets in marches and candle light vigils to express outrage with the proposed agreement, including its provisions giving U.S. corporations the right to challenge South Korean laws in private tribunals.
In October, 35 South Korean lawmakers joined 20 U.S. Representatives in writing President Obama and Korean President Lee Myunk-bak to protest the proposal.
Despite all that opposition, when Obama and Lee emerged from talks without an agreement, the American press, pundits and “analysts on both sides of the aisle,” described the situation as a major diplomacy failure, “a serious setback for the president.”
They were wrong. It wasn’t a setback for Obama. It was the president refusing to sign a bad deal for American workers.
It was, however, a humiliation for the U.S. Chamber of Commerce, which just spent at least $50 million from secret corporate donors to elect Republicans who will do its bidding. The South Korea deal is a priority for the Chamber. Here’s what Chamber senior vice president for international affairs Myron Brilliant told the New York Times after the South Korean negotiations broke down and Obama pledged to attempt to complete the deal over the following six weeks:
“This will be an early test for this president with the new Congress, particularly the House leadership.”
The “Brilliant” test is whether the president of the United States will comply with Chamber demands to complete trade deals that kill jobs and that Americans despise.
When Obama went to Seoul, Chamber President Thomas J. Donohue was there to, as he put it, help win the trade deal. He also was among 120 executives given exclusive access to international leaders including German Chancellor Angela Merkel and Russian President Dmitri A. Medvedev in a conference before the G-20 meeting.
The international organizers didn’t invite to the trade talks or the conference the students, farmers, environmental groups, organized labor and untold millions of individuals who oppose the so-called free trade deals. The human beings who will be hurt most by the trade deals didn’t get a seat at the table. The corporate-people who stand to gain everything did.
Brilliant’s comments express the corporate sense of entitlement. They spent tens of millions to get what they wanted from politicians to increase profits. Now they expect it to be delivered. It’s their recompense, their corporate reward.
If fatter profits mean fewer American jobs and wider trade deficits, that’s simply not a problem for corporations. That’s among the perks corporations got when the Supreme Court awarded them the privileges of personhood in America but none of the pesky personal and patriotic responsibilities of actual people in American society.
About The Author: Leo Gerard is the United Steelworkers International President. Under his leadership, the USW joined with Unite -the biggest union in the UK and Republic of Ireland – to create Workers Uniting, the first global union. He has also helped pass legislation, including the landmark Canadian Westray Bill, making corporations criminally liable when they kill or seriously injure their employees or members of the public.
Tags: Abraham Lincoln, Angela Merkel, CAFTA, Central American Free Trade Agreement, Colombia Free Trade Agreement, Dmitri A. Medvedev, fair trade, Free Trade, FTA, Gettysburg, Korea Free Trade Agreement, Lee Myunk-bak, Myron Brilliant, NAFTA, New York Times, North American Free Trade Agreement, Panama Free Trade Agreement, Thomas J. Donohue, U.S. Chamber of Commerce, U.S. Supreme Court Posted in Chamber of Commerce, Free Trade, economy | 1 Comment »
Thursday, November 18th, 2010
In June the ESPN Zone restaurant in Baltimore’s trendy Inner Harbor shopping and entertainment district closed after workers were given just a week’s notice and state regulators were given only one day notice.
In a class-action lawsuit filed Monday naming ESPN Zone’s owner Disney, five workers allege this was a violation of the WARN Act, which requires at least 60 days notice—or 60 days severance pay—in the case of mass layoffs at companies with 100 or more employees. About 150 workers lost their jobs when the restaurant closed. About 50 workers and supporters protested Monday outside ESPN Zone, then marched to Baltimore District Court where the lawsuit was filed. (See photos by Bill Hughes here).
After the ESPN Zone closed June 16, workers were given a month’s pay on administrative leave and an additional severance based on length of service, which the company has said constitutes WARN Act compliance. But the workers’ attorneys and a grassroots labor group called United Workers says the total pay and severance is still less than what they would be due under the WARN Act. Severance was due under an agreement with Disney that should be separate from WARN Act compliance, they say.
The case has become a centerpiece of United Workers’ Economic Human Rights Zone campaign in the Inner Harbor, a novel strategy uniting workers at various restaurants and stores to demand that as the area has received substantial taxpayer subsidies, developers of the two major malls should be responsible for making sure workers are paid a state living wage and basic workers rights are respected. Monday’s march came on the second anniversary of the declaration of the Human Rights Zone, and eight years after United Workers’ founding out of a struggle on behalf of homeless vendors at the city stadium.
United Workers began targeting individual employers in the Inner Harbor, but decided it was a more pragmatic and meaningful campaign to target the development as a whole, and demand the two major companies—GGP and Cordish—that lease and sell space commit to making sure their tenants treat workers right.
In a playful post on the United Workers website, they describe the pervasive problems uncovered during an investigation by a pro-labor “Sherlock Holmes.”
Holmes discovered that the trail of worker human rights abuses did not stop with the ESPN Zone, but extends throughout the harbor. Hearing from workers from the Cheesecake Factory, Phillips, and Hooters, he uncovered what lies beneath the surface: poverty wages, stolen tips, sexual harrassment, lack of healthcare, and barriers to education. ‘Different vendors, but the same story? The Inner Harbor is a Poverty-zone! But who is in control?,’ thought Sherlock.
ESPN Zone workers discovered by word of mouth that, they say, managers didn’t intend to give them any notice of the closing at all, until word leaked out over social media websites. That, in fact, is how numerous workers first heard the news. “We would just come to work one day and all the doors would be shut and locked,” said Lenard Gray, 28, who’d worked there more than six years.
The closing was especially problematic since it came during the busiest summer months, when workers count on racking up long hours that – even at pay rates just barely above minimum wage – allow them to save money for leaner seasons. Workers reported becoming homeless, having to withdraw kids from programs and being evicted since the closing.
“We were stunned. It was like walking through a dream. We were just devastated,” said former cook Winston Gupton. He had worked there for more than seven years, and lost his housing after the closure.
The WARN Act – which received national attention during the Republic Windows and Doors occupation in Chicago two years ago – was meant to provide workers time to look for other jobs and state agencies time to offer retraining and social services. The acronym means Worker Adjustment and Retraining Notification. Even when WARN Act notice is given, an outpouring of state services or retraining opportunities is a rarity. And the Act is regularly violated with few repercussions.
Enforcing it takes lawsuits like the one filed by ESPN Zone workers, which are costly and time-consuming for low-income workers who hardly have time to wait around for a judgment.
But as in the Republic Windows and Doors struggle, the ESPN Zone workers’ lawsuit serves not only to try to hold an employer accountable but also to raise the public profile of WARN Act violations in general and of the Economic Human Rights Zone campaign. Organizers say they will continue to investigate possible labor law violations and working conditions at various Inner Harbor outlets including the Cheesecake Factory, Phillips Seafood and Hooters. When United Workers initially surveyed restaurants trying to find the “worst of the worst,” Phillips’ name came up, they said.
Former ESPN Zone cook Debra Harris said in a statement:
We are sending a message to Disney, ESPN Zone and Inner Harbor developers that private gain should not take precedence over human life. Corporate executives think they can break the law and just get away with it, because harbor developers do not enforce any human rights standards, but we are human beings and we have the right to dignity and respect.
This post was originally published on Working In These Times.
About the Author: Kari Lydersen, an In These Times contributing editor, is a Chicago-based journalist writing for publications including The Washington Post, the Chicago Reader and The Progressive. Her most recent book is Revolt on Goose Island.
Tags: Baltimore, closing, ESPN Zone, layoffs, United Workers, WARN Act Posted in economy, layoffs | 3 Comments »
Monday, November 8th, 2010
I think I have a new favorite quote of all time. Time Warner Cable’s Chief Operating Officer, Landel Hobbs, recently said he doesn’t see evidence of people dropping cable in favor of the Internet.
Hello?
I cut the cord and so did many of the people I know. The tsunami of departures from cable might only be a trickle now, but does anyone really believe that it won’t happen over time?
Let me give you proof that this is a “when” question and not an “if” question. Do you know what generates the most traffic during peak TV viewing hours on the Internet these days? Not social networking or porn, but Netflix on-demand video service. Hint, hint.
Why isn’t this news to me? Because I’m busy watching Netflix.
Ironically we’ve seen this all happen before. Remember when phone companies thought that everyone would continue to have a landline and a cell phone? Sure there are technologies that compliment existing technologies. But when you can get what you need, and more, from a new technology most of us eventually move on.
Back to Mr. Hobbs. He has become my poster boy for denying reality. And unfortunately the people who work at his company will undoubtedly pay for this in lost opportunities and layoffs.
If you think this is too strong a statement, look no further than Blockbuster. Once a dominant player in entertainment, they whistled into the winds of change when Netflix first appeared. And ever since they’ve been satisfied to try to copy each strategic advance by Netflix. You know what happened, people figured this out. And they decided they’d rather be on board with the leader, and not the industry laggard.
No executive today can afford to write off the canaries in the coal mine any longer. Today you’ve not only got to keep your eyes open for competitors, you’ve got to assume they’re coming, like a freight train. Are you listening to me Mr. Cable Guy? Now, don’t get me wrong, I have no problem with Mr. Hobbs, a.k.a. Mr. Asleep at the Switch, getting run over by reality. But I’m sad that a lot of the people inside his company, who are awake and ready to offer alternative strategies for surviving the changes that lay ahead, have to exist under someone who is in denial.
Ever heard the phrase “that’s why he earns the big bucks?” Mr. Hobbs, using that same logic you are doing nothing short of stealing from your company and it’s people.
Sorry to be so bold, but I have this old-school belief that leaders should lead.
About The Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. Check the revised edition of his Wall Street Journal best seller, “The Boss’s Survival Guide.” If you have a question for Bob, contact him via bob@workplace911.com.
Tags: cable, denying reality, Time Warner Posted in competition, economy | No Comments »
Friday, November 5th, 2010
Last night’s election, AFL-CIO President Richard Trumka told reporters today in a conference call, “was about jobs, plain and simple. It was a mandate to fix the economy and create jobs. But here’s what it wasn’t”:
It wasn’t a mandate for the policies most Republicans campaigned on.
An election night survey of voters in 100 swing congressional district bears that out. That survey, Trumka says:
shows clearly that the election wasn’t an endorsement of tax cuts for the wealthy—or for undermining Social Security or the minimum wage. It wasn’t a rejection of building a middle class economy. And it wasn’t an ideological purge—as many Blue Dogs lost as progressives.
Overall, union members voted for the union-endorsed candidate by 64 percent. The union movement’s mobilization included 200,000 union volunteers who distributed 19.4 million fliers while talking with workers one on one at the workplace. They knocked on 8.5 million doors and made millions of phone calls.
Members of Working America, the AFL-CIO community affiliate for people without a union, was in 13 cities, nine states and more than 80 electoral races around the country and knocked on nearly 800,000 doors and made half a million phone calls to voters around the country.
While Republicans today are claiming a mandate for their “Pledge to America” agenda—more or less a return to Bush-era economic policies—the survey numbers show a different story. When asked about specific Pledge to America agenda items, just 34 percent of all voters and 49 percent of Republicans support extending the tax cuts for the wealthy. By almost the same small numbers, they support rolling back Wall Street reform.
Among other proposals from Republican candidates this fall, only 29 percent of all voters and 35 percent of Republicans back raising the Social Security retirement age, while only 28 percent of all voters and 45 percent of Republicans back privatizing Social Security.
Reducing or eliminating the minimum wage draws the support of just 18 percent of all voters and 25 percent of Republicans.
Instead, the voters surveyed are big supporters of many of the economic proposals the AFL-CIO and most Democrats have called for and want Congress to invest money in job creation and help for the unemployed. Voters say they want:
- A major job creation tax credit for business to create jobs in the United States—89 percent of all voters and 87 percent of Republicans.
- Job creation by rebuilding the nation’s infrastructure of roads, bridges, schools and energy systems—77 percent of all voters and 63 percent of Republicans.
- Job investment to maintain U.S. competitiveness with China, India and Germany—77 percent of all voters and 74 percent of Republicans.
- Federal unemployment insurance benefits extended for those who have lost their jobs and are unable to find new ones—65 percent of all voters and 47 of Republicans.
Trumka also said voters were angry and rightfully so because, “They’ve felt the pain of economic collapse, and paid for it with their jobs, their homes and often their hope.”
That anger is directed at everyone in Washington. Our election night survey showed that, quite frankly, voters don’t make a distinction between Democrats and Republicans on having a plan to strengthen the economy.
The survey shows that just 35 percent of the voters believe the Republicans have a clear economic plan to rebuild the economy and create a jobs plan. Those numbers are just slightly better than the 30 percent who believe Democrats have an economic fix it plan.
While Republicans picked up huge gains in the House and some Senate seats, Trumka told reporters:
The months of intense, grassroots organizing on the ground by working people and their unions prevented yesterday from being even worse—particularly in places like Nevada, West Virginia, and California. In those states and many House districts, union members voted for our endorsed candidates by huge margins—40 percent in Nevada, for example—and we were the firewall.
Trumka also pointed to the huge amount of corporate money that played a major influence in the election.
According to Open Secrets, 74.2 percent of ALL money spent in the elections was spent by corporations—and their spending started well before the elections. In 2009 alone, the top three business industries—the health care and pharmaceutical industry, business associations like the Chamber of Commerce, and the oil and gas industry, spent $626 million on lobbying to defeat and distort President Obama’s agenda.
But, despite last night’s outcome, Trumka promised the fight
begins all over again for working families—for jobs, for building the middle class, for protecting retirement security and more.
That includes stepping up efforts to end corporate outsourcing of U.S. jobs, strengthening Social Security and Medicare, fighting to help jobless workers, asking multimillionaires to pay their fair share in taxes and investing in a 21st century infrastructure.
This article was originally posted on AFL-CIO Now Blog.
About The Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL- CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.
Tags: AFL-CIO, Jobs, midterm election, Mike Hall Posted in Jobs, economy, election | No Comments »
Monday, October 4th, 2010
I understand the home-of-the-free-and-land-of-the-brave. I get bring-me-your-tired-huddled-masses-yearning-to-breathe-free. I can even relate to hot dogs-apple pie-and-baseball.
What I don’t understand is how passive Americans have been in the face of the economic challenges brought on by the recession. I thought we were a feisty country, tough and ready to stand up for what’s right.
Case in point this week. Three banks, Bank of America, JP Morgan and GMAC announced that they’ve frozen foreclosure cases in 23 states because of sloppy practices, officials who signed documents without reviewing them or having a notary present. Am I the only person who finds it ironic that the very banks that we loaned money to keep afloat are now screwing over homeowners with flawed, and illegal, foreclosure policies?
We also had Senators decrying continuing unemployment benefits for people unable to find work because of budgetary concerns. But these same legislators have no difficulty in pushing for more tax breaks for the people who have made out like bandits for the past decade. The rich will continue to get richer because of their investments. Isn’t that good enough, why do they have to continue to pile on the profits at our expense?
People are losing jobs, losing houses and losing hope. Yet we haven’t demanded changes to our current system of capitalism for poor people and socialism for the rich.
In Europe there are protests in the streets in many countries at efforts to cut the budget, but not here. Not even close.
Domestic Goddess Roseanne Barr once said that she knew when her husband was home because the “couch was snoring.” Sound familiar?
About The Author: Bob Rosner is a best-selling author and award-winning journalist. For free job and work advice, check out the award-winning workplace911.com. Check the revised edition of his Wall Street Journal best seller, “The Boss’s Survival Guide.” If you have a question for Bob, contact him via bob@workplace911.com.
Tags: Bank of America, Bob Rosner, economic challenges, foreclosures, GMAC, JP Morgan, Recession Posted in banking, economy, financial reform | 2 Comments »
Thursday, September 16th, 2010
It’s a stifling hot day in June, and Tory Moore, 37, is pounding the pavement outside a currency exchange in Bolingbrook, a Chicago suburb. Wearing a black T-shirt emblazoned with the words Warehouse Workers for Justice, sweating but full of energy, he paces back and forth while mopping his face with a yellow washcloth, looking for the tell-tale signs of warehouse workers.
After years working in warehouses himself, he knows what to look for: t-shirt, shorts, steel-toed boots or tennis shoes, safety goggles. When he sees a likely warehouse worker, he goes up with a friendly greeting and starts asking questions. He often chimes in with his own story – he was a temp for six years, even though he was working at the same warehouse – Del Monte Foods in Kankakee – the whole time.
Moore is one of the driving forces behind the study “Bad Jobs in Goods Movement,“ released by Warehouse Workers for Justice and the University of Illinois at Chicago last month. The campaign hired Moore through a program for low-income workers to help conduct the hundreds of surveys that form the basis for ongoing research into this booming but little-examined industry.
“Some people need two jobs just to make ends meet,” explains Moore. He asks one worker outside the currency exchange: “Are you doing anything else to make ends meet, cutting grass, cutting hair, tattooing?”
Since becoming involved with Warehouse Workers for Justice, Moore has developed his apparently natural talents as an organizer. He spoke to workers, organizers and academics involved with goods movement issues nationwide at the U.S. Social Forum in Detroit in June.
Outside the currency exchange, he goes through the questions on the four-page blue survey earnestly and methodically, making sure he gets the spelling of people’s names right and reading off all the different types of discrimination they may have faced. When he gets to the question about whether someone prefers temporary or permanent work, his voice becomes more animated and he jumps in to answer for them, “Permanent right?”
Most quickly agree.
“You don’t get any justice if you’re a temp!” he says.
He takes a quick break to check his messages – the only one is from a temp agency asking if he can work tomorrow. On principle, he’s not going to take a one-day job, even though he needs the money. But he doesn’t want a refusal to prevent them from calling him with future longer-term offers. So he returns the phone call – politely saying, “I’ll be going out of town so I won’t be able to do it.”
“Well I lied to them, I’m not going to disqualify myself in case something else comes up. I’m not trying to be lazy, but, one day only! I’m not the one.”
Moore is acutely aware of the injustice in the industry, which relies heavily on temporary workers who labor for low wages with few or no benefits, paid sick days or chance for advancement. But in a desperate job market, some see this as normal, and are grateful for any work they can get.
One man, who doesn’t want his name used, is happy to have just gotten a new albeit temporary job.
“I thought that was the game! I didn’t know that was a problem. I thought that’s just the way it was. You work three months somewhere then they move you somewhere else,” the man says.
“That’s right, you’re getting $9.50, then they move you somewhere else where you’re making $8,” says Moore. “I never thought of it that way…”
Moore examines the man’s pay stub, and is enraged to see there’s no company name on it.
“There’s no damn name on here! That’s a problem! Say you need to sue them, you show this to a judge, there’s no name.”
The man rubs his face and looks worried. Moore asks what his new position is.
“I really don’t know, they don’t tell me anything, they just say, ‘See how many of these seasoning packets you can put in a box,’” says the man, who works 2 a.m. to noon. “I was just so happy to get the job.”
Moore tells his story about being a temp for six years, and being denied a loan and apartment rentals. ” Seriously?” says the man, looking crestfallen. “So when I go look for an apartment I can’t go in and say this is the place I work?”
“A lot of people lost their cribs because the 89 days came and they got laid off instead of hired on. This is a million-dollar company and you’re working your ass off for 9.50,” Moore says.
The man stands absorbing it all for a few moments, asks a few more questions and receives impassioned answers from Moore. The man basically tells Moore that he has ruined his day, but he’s glad to know what he needs to watch out for. He agrees to answer Moore’s survey questions.
“I had to give my Martin Luther King speech,” Moore says, laughing and shaking his head. He wipes his brow again, then starts scanning the parking lot for more warehouse workers.
This article was originally posted on Working In These Times Blog.
About the Author: Kari Lydersen, an In These Times contributing editor, is a Chicago-based journalist writing for publications including The Washington Post, the Chicago Reader and The Progressive. Her most recent book is Revolt on Goose Island.
Tags: Bad Jobs in Goods Movement, chicago, Kari Lydersen, Kari Lyderssen, US Social Forum, Warehouse workers, Warehouse Workers for Justice Posted in Jobs, economy | No Comments »
Wednesday, September 8th, 2010
This Labor Day feels gloomy. It’s a celebration of work when there is not enough of it, a day off when too many desperately seek a day on.
America has commemorated two Labor Days since this brutal recession began near the end of George Bush’s presidency in December of 2007. Now the relentless high unemployment, the ever-rising foreclosures, the unremitting wage and benefit take-backs have replaced American optimism and enthusiasm with fear and anger.
Happy Labor Day.
On this holiday, we can rant with Glenn Beck, kick the dog and hate the neighbor lucky enough to retain his job. Or we can do something different. We can join with our neighbors, employed and unemployed, our foreclosed-on children, our elderly parents fearing cuts in their Social Security lifeline and our fellow workers worrying that the furlough ax will strike them next. Together we can organize and mobilize and create a grassroots groundswell that gives government no choice but to respond to our needs, the needs of working people.
We can do what workers did during the Great Depression to provoke change, to create programs like Social Security and achieve recognition of rights like collective bargaining. These changes were sought by groups to benefit groups. In a civil society, people care for one another. And America is such a society – one where people routinely donate blood to aid anonymous strangers, children set up lemonade stands to contribute to Katrina victims and working families find a few bucks for United Way.
The self-righteous Right is all about individuals pulling themselves up by their bootstraps. That proposition – the do-it-all- by-yourself-winner-takes-all philosophy – clearly failed because so many Americans are jobless, homeless and too penniless to afford boots.
Over the past decade, the winner who took all was Wall Street. The banksters gambled on derivatives and other risky financial tomfoolery and won big time. Until they lost. And crashed the economy. After the American taxpayer bailed them out, those wealthy traders returned to making huge profits and bonuses based on perilous schemes.
Still, they believe they haven’t taken enough from working Americans. They’re lobbying to end aid for those who remain unemployed in a recession caused by Wall Street recklessness. And they’re demanding extension of their Bush-given tax breaks. This is the nation’s upper 1 percent, people who earn a million or more each year, the 1 percent that took home 56 percent of all income growth between 1989 and 2007, the year the recession began.
Since 2007, 8.2 million workers have lost jobs. Millions more are underemployed, laboring part-time when they need full-time jobs, or barely squeaking by on slashed wages and benefits. Since the recession began, the unemployment rate nearly doubled, from 5 percent to 9.6 percent, and that does not include those so discouraged that they’ve given up the search for jobs, a decision that is, frankly, understandable when there are only enough openings to re-employ 20 percent of the jobless. Five unemployed workers compete for each job created in this sluggish economy.
And American workers weren’t prepared for this downturn, having already suffered losses in the years before it began. The median income, adjusted for inflation, of working-age households declined by more than $2,000 in the seven years before the recession started.
At the same time, practices like off-shoring jobs and signing regressive international trade deals contributed to the loss of middle class, blue collar jobs. A new report, “The Polarization of Job Opportunities in the U.S. Labor Market,” by the Center for American Progress and The Hamilton Project, says:
“The decline in middle-skill jobs has been detrimental to the earnings and labor force participation rates of workers without a four-year college education, and differentially so for males, who are increasingly concentrated in low-paying service occupations.”
The recession compounded that, the report says:
“Employment losses during the recession have been far more severe in middle-skilled white- and blue-collar jobs than in either high-skill, white-collar jobs or low-skill service occupations.”
What that means is high roller banksters are living large; lawn care workers and waitresses subsist on minimum wage, and working class machinists and steelworkers are disappearing altogether.
The researchers found the U.S. economy is increasingly polarized into high-skill, high-wage jobs and low-skill, low wage jobs. America is losing the middle jobs and with them its great middle class.
No wonder the rising anger in middle America.
But fury doesn’t solve the problem. This Labor Day, we must organize to save ourselves and our neighbors. We must stop America from descending into plutocracy. We must demand support for American manufacturing and middle class jobs. That means terminating tax breaks for corporate outsourcers, ending trade practices that violate agreements and international law and punishing predator countries for currency manipulation that subverts fair trade by artificially lowering the price of products shipped into the U.S. while artificially raising the price of American exports.
We must demand support for American industry, particularly manufacturers of renewable energy sources like solar cells and wind turbines that create good working class jobs, increase America’s energy independence and reduce climate change.

We must insist on policies that support the middle class, including preserving Social Security and Medicare, extending unemployment insurance while joblessness remains high, and enforcing the health care reform law so that every American worker and family can afford and is covered by insurance.
On this Labor Day, we should all have a picnic, invite neighbors, friends and family, and over hot dogs and potato salad, organize to save the American middle class.
Mobilize to end the gloom and restore American optimism.
***
For help: the Union of the Unemployed, the AFL-CIO, USW, Working America. Join the One Nation March for jobs Oct. 2 in Washington, D.C.
About The Author: Leo Gerard is the United Steelworkers International President. Under his leadership, the USW joined with Unite -the biggest union in the UK and Republic of Ireland – to create Workers Uniting, the first global union. He has also helped pass legislation, including the landmark Canadian Westray Bill, making corporations criminally liable when they kill or seriously injure their employees or members of the public.
Tags: banksters, Center for American Progress, Glenn Beck, Great Depression, jobless, Labor Day, manufacturing, Medicare, Recession, renewable energy, Social Security, solar cells, The Hamilton Project, unemployment, Wall Street, wind turbines Posted in Labor Day, economy | No Comments »
Thursday, April 22nd, 2010
When the world’s banks were going under, governments jumped to their aid. Now with record numbers of people out of work, it’s past time for governments to put working people first, or the fledgling economic recovery could fall apart. Leaders from the G-20 nations issued this warning while in Washington, D.C., this week for the first-ever meeting of G-20 labor ministers and employment ministers with labor and business leaders April 20-21.
The meeting stems from the efforts by AFL-CIO President Richard Trumka and others at the G-20 summit in Pittsburgh last September to make jobs the central element in any global economic recovery. The G-20 includes the leaders of the world’s top 19 economies and the European Union.
During their meetings at the AFL-CIO before the labor ministers’ summit, the union leaders again strongly urged their governments to support the International Labor Organization’s (ILO) Global Jobs Pact, which includes comprehensive measures to stimulate employment growth and provide basic protections for workers and their families.
Sharan Burrow, president of the International Trade Union Confederation (ITUC), told the ministers:
Governments must show the same political will to attack global unemployment and underemployment as they did to tackle the banking crisis in late 2008. We cannot afford a lost decade of stagnant labor markets.
Trumka made it clear that if the jobs of the future are to be good, family supporting jobs, workers in all nations must have the fundamental right to form unions and bargain collectively:
In the U.S, tens of thousands of workers are fired every year for attempting to form unions. For example, there can be no excuse for T-Mobile, the U.S. telecommunications company, to viciously oppose unions in the U.S. while its corporate parent, Deutsche Telekom supports bargaining rights and unions throughout Europe. Unless workers’ rights are enforced in all countries, there will be a “race to the bottom” in wages and working conditions, a race that will undermine decent work everywhere.
For more information on the ongoing campaign to bring justice to T-Mobile, click here and here.
The union leaders also insisted that governments not reduce stimulus efforts until employment rates return to pre-crisis levels on a sustainable basis, and called for an equitable sharing of the cost of the recovery costs through more progressive tax systems, including the adoption of a financial transactions tax, actions the AFL-CIO strongly backs.
ITUC General Secretary Guy Ryder said:
We must halt the continuing rise in unemployment and create new jobs. Furthermore, there needs to be an ongoing role for labor ministers within the G-20 in order to address the employment impact of the crisis with effective measures to help all workers, including the most vulnerable.
John Evans, general secretary of the Trade Union Advisory Committee (TUAC) to the Organization for Economic Cooperation and Development (OECD), added:
Increasing economic inequality over two decades helped cause this crisis. Fairer income distribution and restoring real purchasing power to working people is essential for sustainable economic growth in the future.
Check out the detailed proposals presented by the union delegation here. Read the ITUC/TUAC evaluation of the meeting’s outcomes here.
*This post originally appeared in AFL-CIO blog on April 22, 2010. Reprinted with permission.
About the Author: James Parks had his first encounter with unions at Gannett’s newspaper in Cincinnati when his colleagues in the newsroom tried to organize a unit of The Newspaper Guild. He saw firsthand how companies pull out all the stops to prevent workers from forming a union. He is a journalist by trade, and worked for newspapers in five different states before joining the AFL-CIO staff in 1990. He has also been a seminary student, drug counselor, community organizer, event planner, adjunct college professor and county bureaucrat. His proudest career moment, though, was when he served, along with other union members and staff, as an official observer for South Africa’s first multiracial elections. Author photo by Joe Kekeris
Tags: AFL-CIO, economic recovery, global economy, Global Jobs Pact, Guy Ryder, James Parks, Jobs, John Evans, labor, Richard Trumka, T-Mobile, union, union blogs, unions, worker's rights Posted in economy | 1 Comment »
Wednesday, January 27th, 2010
The White House Task Force on the Middle Class today announced several initiatives it says will help middle-class families afford soaring child care costs, care for their aging relatives, cope with the challenge of saving for retirement and pay for their children’s college tuition.
President Obama says the measures will help “ease the burdens on middle-class families who are struggling in this economy, and provide the help they need to get ahead.” The White House says Obama will discuss these and other vital middle-class issues, including job creation and health care in his State of the Union address Wednesday.
The Task Force chairman, Vice President Joe Biden, says the initiatives were developed after a series of meetings during the past year with working families around the country and at the White House.
Every day, middle-class families go to work and help make this country great. For a year, our Task Force has been hearing that they are struggling with soaring costs and squeezed family budgets. These common sense initiatives will help these families cope with these challenges.
The initiatives include:
• Nearly doubling the Child and Dependent Care Tax Credit for middle-class families making under $85,000 a year and a $1.6 billion increase in child care funding for families struggling to enter the middle class.
• Limiting a student’s federal loan payments to 10 percent of his or her income above a basic living allowance.
• Creating a system of automatic workplace IRAs, requiring all employers to give the option for employees to enroll in a direct-deposit IRA.
• Expanding tax credits to match retirement savings and enacting new safeguards to protect retirement savings.
• Expanding support for families balancing work with caring for elderly relatives.
Click here for a fact sheet with more detailed information on each initiative.
The Task Force has given working families and union leaders the opportunity to outline their concerns and offer recommendations on ways to make the economy work for working families.
United Steelworkers President Leo W. Gerard emphasized the need for creation of good green jobs. Members of Communications Workers of America (CWA) Local 730 in St. Cloud. Minn., told Biden and the Task Force that the Employee Free Choice Act was vital to allow workers to bargain for jobs with good wages and benefits. AFL-CIO Secretary-Treasurer Liz Shuler urged the Task Force to make fixing manufacturing a priority in building a stronger economy.
Visit the White House Task Force on the Middle Class website here.
The White House Task Force on the Middle Class today announced several initiatives it says will help middle-class families afford soaring child care costs, care for their aging relatives, cope with the challenge of saving for retirement and pay for their children’s college tuition.
President Obama says the measures will help “ease the burdens on middle-class families who are struggling in this economy, and provide the help they need to get ahead.” The White House says Obama will discuss these and other vital middle-class issues, including job creation and health care in his State of the Union address Wednesday.
The Task Force chairman, Vice President Joe Biden, says the initiatives were developed after a series of meetings during the past year with working families around the country and at the White House.
Every day, middle-class families go to work and help make this country great. For a year, our Task Force has been hearing that they are struggling with soaring costs and squeezed family budgets. These common sense initiatives will help these families cope with these challenges.
The initiatives include:
• Nearly doubling the Child and Dependent Care Tax Credit for middle-class families making under $85,000 a year and a $1.6 billion increase in child care funding for families struggling to enter the middle class.
• Limiting a student’s federal loan payments to 10 percent of his or her income above a basic living allowance.
• Creating a system of automatic workplace IRAs, requiring all employers to give the option for employees to enroll in a direct-deposit IRA.
• Expanding tax credits to match retirement savings and enacting new safeguards to protect retirement savings.
• Expanding support for families balancing work with caring for elderly relatives.
Click here for a fact sheet with more detailed information on each initiative.
The Task Force has given working families and union leaders the opportunity to outline their concerns and offer recommendations on ways to make the economy work for working families.
United Steelworkers President Leo W. Gerard emphasized the need for creation of good green jobs. Members of Communications Workers of America (CWA) Local 730 in St. Cloud. Minn., told Biden and the Task Force that the Employee Free Choice Act was vital to allow workers to bargain for jobs with good wages and benefits. AFL-CIO Secretary-Treasurer Liz Shuler urged the Task Force to make fixing manufacturing a priority in building a stronger economy.
Visit the White House Task Force on the Middle Class website here.
*This article originally appeared in the AFL-CIO blog on January 25, 2009. Reprinted with permission.
About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. I came to the AFL- CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. When my collar was still blue, I carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. I’ve also worked as roadie for a small-time country-rock band, sold my blood plasma and played an occasional game of poker to help pay the rent. You may have seen me at one of several hundred Grateful Dead shows. I was the one with longhair and the tie-dye. Still have the shirts, lost the hair.
Tags: AFL-CIO, economy, Employee Free Choice Act, health care, healthcare, Mike Hall Posted in economy, health care | 1 Comment »
Friday, January 22nd, 2010
 Credit: Joe Kekeris
Massachusetts voters sent a strong signal to Washington lawmakers Tuesday that they want results—and aren’t seeing any. Not on health care reform, not on job creation and not on fixing the nation’s economy.
Voters also sent another powerful message for Democrats: Ignore the working class at your peril.
Some 79 percent of voters polled on election night said the most important issue for them was electing a candidate who will strengthen the economy and create more jobs. Controlling health care costs was next on their list, with 54 percent citing that issue as the main determinant of their vote.
The poll, conducted by Hart Research Associates among 810 voters for the AFL-CIO on the night of the election, also found that although voters without a college degree favored Barack Obama by 21 percentage points in the 2008 election, Democratic candidate Martha Coakley lost that same group by a 20-point margin.
And as AFL-CIO Richard Trumka has pointed out, Massachusetts voters have the same goals for reforming health care, creating good jobs and strengthening the economy as they did in November 2008—but President Obama and the Democrats have done too little:
“Voters showed they don’t think Democrats have overreached—they think that the Democrats underreached.”
In fact, voters were not worried about Democratic “overreach”—47 percent said their bigger concern about Democrats is that they haven’t succeeded in making needed change rather than tried to make too many changes too quickly (32 percent). Even voters for Scott Brown were more concerned about a lack of change (50 percent) than about trying to make too many changes too quickly (43 percent).
These results puts a lie to the corporate media spin that Democrats have gone “too far” in pushing a reform agenda.
Nor was the election result about health care reform. Brown actually lost among the 59 percent of voters who picked health care as one of their top two voting issues (50 percent for Coakley and 46 percent for Brown). Voters for Brown (55 percent ) were less likely to cite health care as a top issue than were voters for Coakley (66 percent).
The election also should be a wake-up call for those in Washington who support taxing working families’ health care. Voters who thought their health care would be taxed voted by 64 percent for Brown, while those who did not think their health care would be taxed voted by 54 percent to 40 percent for Coakley.
Our polling results show the election was not an endorsement of a Republican agenda or a call to abandon health care reform. Voters strongly disapprove of the job being done by congressional Republicans (26 percent approve and 58 percent disapprove), a much lower rating than they give to congressional Democrats (37 percent approve and 51 percent disapprove).
Other polls show the need for Democrats in Congress to take immediate action to create jobs, reform health care, stop catering to Wall Street and address the needs of America’s working class. As John Judis wrote, the election showed Democrats have lost ground primarily among white working and middle-class voters and senior citizens.
The Suffolk University poll in Massachusetts…singled out two white working-class towns, Gardner and Fitchburg, as bellwethers. Obama won Gardner, where Democrats hold a 3-1 registrations edge, by 59 percent to 31 percent in 2008. Brown won it by 56 percent to 42 percent. Obama won Fitchburg, with a similar Democratic edge, by 60 percent to 38 percent in 2008. Brown won it by 59 percent to 40 percent. That suggests a fairly dramatic shift among white working-class voters.
Summarizing the findings from election night polling conducted by Research 2000 Massachusetts Poll, MoveOn.org said the results show voters worry that Democrats in power “have not done enough to combat the policies of the Bush era.”
Both sets of voters wanted stronger, more progressive action on health care reform as well. In summary, the poll shows that the party who fights corporate interests—especially on making the economy work for most Americans—will win the confidence of the voters.
The working class has spoken. Will Democrats listen?
*This post was crossposted from the AFL-CIO blog on January 21, 2010. Reprinted with permission.
Tags: AFL-CIO, economy, Jobs, Martha Coakley, President Obama, Richard Trumka, Scott Brown Posted in economy, healthcare | 1 Comment »
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