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Make American Jobs

Monday, February 13th, 2017

President Donald Trump had Harley-Davidson executives and employees over to lunch at the White House last week and reiterated his promise to end wrong-headed trade policies that enable foreign countries to eat American workers’ lunch.

Trump reassured the Harley workers from the United Steelworkers (USW) union and the International Association of Machinists (IAM) that he would renegotiate NAFTA and other trade deals.

“A lot of people [have been] taking advantage of us, a lot of countries [have been] taking advantage of us, really terribly taking advantage of us,” he said as news cameras clicked. “We have to be treated fairly.”

No promise could be more heartening to workers as corporations like Carrier and Rexnord continue to move jobs to Mexico. No news could be better in the same week that the Economic Policy Institute (EPI) released research showing that since 2001, the United States’ massive trade deficit with China cost 3.4 million Americans their jobs.

EPI-jobs-China-Gerard-OurFuture

Workers, families and communities have suffered as trade and tax policy over the past quarter century encouraged corporations to off-shore factories and jobs. Flipping that philosophy to favor American workers and domestic manufacturing is exactly what labor organizations like the USW have long fought for. If Trump actually achieves that, all Americans will benefit.

In the meantime, Rexnord Corp. has finalized plans to uproot its bearings manufacturing machines in Indianapolis, transport the equipment to Mexico and throw 300 skilled and dedicated workers, members of my union, the USW, into the street. Terminations begin Feb. 13.

Automation did not take these workers’ jobs. The lure of dirt-cheap wages in Mexico and tax breaks awarded for the costs of moving jobs and machinery stole them.

Trump talked to the Harley workers and executives about changing tax policy. Ending all special tax deals and loopholes that corporations like Rexnord and Carrier use for shuttering American factories and shipping them to other countries would be a good first step. U.S. policy shouldn’t reward corporations like Rexnord and Carrier that profit from exploiting the international wage race to the bottom and the wretched environmental regulation of emerging nations.

Harley-Gerard-OurFuture

Caption: Photo by Vlad/Flickr

The next logical step would be establishing consequences for those corporations — like requiring them to pay substantial economic penalties if they want access to the U.S. market for their once-domestic and now foreign-made products.

In addition, American policy must be —  just as Trump promised in his campaign — to stop trade law violators who are trampling all over American workers.

The EPI study detailed the devastation caused by the worst violator — China. American workers and companies can compete on a level playing field with any counterpart in the world. But the EPI study shows just how much American workers and their employers suffer when the United States fails to strictly enforce international trade law.

Of the 3.4 million jobs lost between 2001 and 2015 because of the U.S. trade deficit with China, EPI found that nearly three-quarters of them, 2.6 million, were manufacturing jobs. Every state and every congressional district was hit. These are jobs fabricating computer and electronic parts, textiles, apparel and furniture.

Manufacturing jobs such as these provide family-supporting wages and benefits such as health insurance and pensions. As these jobs went overseas, American workers’ income stagnated while those at the top — executives, 1 percenters and corporate stockholders — benefited.

As the rich got richer, the EPI researchers found, all non-college educated workers lost a total of $180 billion a year in income.

When the United States agreed to allow China into the World Trade Organization (WTO) in 2001, former President Bill Clinton said the access that the deal provided American companies to the gigantic Chinese market would create jobs. Promises, promises.

It’s possible no one guessed just how massively China would violate the trade rules it agreed to abide by under the WTO pact. Numerous investigations by the Department of Commerce have found China improperly subsidizes its exports by providing artificially cheap loans, free land, and discounted raw materials and utilities. To keep its workers employed, China helps finance overproduction in industries like steel and aluminum, then dumps the excess at below-market prices in the United States, bankrupting mills and factories here.

China pirates innovation, software and technology from foreign producers. To steal trade secrets, its military hacked into the computers of American corporations and the USW. In addition, China has manipulated the value of its currency so that its exports are artificially cheap and imports from the United States are artificially expensive.

Even if the scale of violation was underestimated, when it occurred, the American government had a responsibility to take action, to file trade cases, to take issues before the WTO, to negotiate to bring China in line with international standards and protect American jobs and preserve domestic manufacturing, which is crucial to national defense.

Precious little of that occurred. The trade deficit with China exploded, obliterating American jobs — a quarter million on average every year since China joined the WTO in 2001. China exports to the United States its overproduced aluminum, steel and other commodities, but also its unemployment.

After that lunch, Trump thanked Harley-Davidson for assembling its iconic motorcycles in America. He extended his hand in aid, saying, “We are going to help you, too. We are going to make it really great for business, not just for you, but for everybody. We are going to be competitive with anybody in the world.”

American workers and domestic manufacturers already are competitive. What they need is a government that doesn’t require them to compete with a handicap so huge that it’s like asking Evel Knievel to jump his Harley-Davidson XR 750 over 19 cars without a ramp. What they need is tough action against corporations that renounce their birthplace for profit and against flagrant, job-stealing trade violators like China.

This post originally appeared on ourfuture.org on February 7, 2017. Reprinted with Permission.

Leo Gerard is the president of the United Steelworkers International union, part of the AFL-CIO. Gerard, the second Canadian to lead the union, started working at Inco’s nickel smelter in Sudbury, Ontario at age 18. For more information about Gerard, visit usw.org.

Americans are now twice as likely to work in solar as in coal

Tuesday, February 7th, 2017

In his first hour as president, Donald Trump promised to resurrect middle-class manufacturing jobs in the United States. It will be all but impossible for him to reverse the tides of globalization and automation, but the future may nonetheless be bright for the American worker, thanks to a trend that predates and will outlast the 45th president.

For the last decade, the solar industry has enjoyed exponential job growth. Last year, more than 51,000 people in the United States were hired to design, manufacture, sell and install solar panels, according to a new report from The Solar Foundation. That means the solar industry created jobs 17 times faster than the economy as a whole.

“In 2016, we saw a dramatic increase in the solar workforce across the nation, thanks to a rapid decrease in the cost of solar panels and unprecedented consumer demand for solar installations,” said Andrea Luecke, The Solar Foundation’s president and executive director.

Falling prices for panels are helping drive a nationwide clean-energy boom. Utility-scale solar is now cost-competitive with wind and natural gas—and it’s cheaper than coal, even without subsidies. Last year, solar accounted for more than a third of new U.S. generating capacity.

CREDIT: Solar Jobs Census 2016, The Solar Foundation

The solar industry now employs twice as many people in the United States as the coal industry and roughly the same number of people as the natural gas industry. While solar still accounts for a much far smaller share of U.S. power generation than either of those fossil fuel sources, it’s expanding rapidly, putting a growing number of Americans to work. While the official numbers have not been tallied, early estimates have found that more solar was added to the grid in 2016 than natural gas capacity.

Roughly half of the men and women working in the solar industry are installers, who earn a median wage of $26 an hour in a job that can’t be outsourced. In addition, these positions don’t require a bachelor’s degree.

The burgeoning workforce also includes people working in sales and project development, jobs that call for an education in engineering or business.

 
CREDIT: Solar Jobs Census 2016, The Solar Foundation

The report notes that the solar workforce is growing more diverse, employing a larger share of women and people of color, as well as a significant number of military veterans. Last year, solar companies created jobs in nearly every state.

“It’s really a wide range of people that get hired into this industry—everybody from certified and licensed engineers to those who first learned about a solar project when we were building one in their area,” said George Hershman, the general manager of Swinerton Renewable Energy. “A great aspect of this business is that it isn’t an exclusionary trade. It’s a teachable job that can create opportunity for people and give them a skill.”

While jobs are cropping up all across the country, growth is more closely linked to policy support for renewable energy than to the number of sunny days in a given locale. Last year, Massachusetts added more solar jobs than Texas, despite enjoying less sunshine. The Bay State has ambitious plans to build out zero-carbon power sources like wind and solar.

CREDIT: Energy Information Administration

“Solar is an important part of our ever-expanding clean energy economy in Massachusetts, supporting thousands of high-skilled careers across the Commonwealth,” Massachusetts Gov. Charlie Baker said.

Smart policy is key to the continued growth of the solar industry, which has been bolstered by federal tax credits and state renewable-energy mandates, among other measures. President Trump plans to roll back federal policies that foster the growth of clean energy, potentially scrap the EPA’s Clean Power Plan, and eliminate funding for clean-energy research and development.

Without these policies, solar will continue to grow, but at an attenuated pace. Corporations like General Motors, Apple and IKEA will keep buying up solar power to cut costs and guard against volatility in the price of fossil fuels. But electric utilities will be less incentivized to shutter existing coal-fired power plants in favor of new renewable energy installations.

Solar evangelists say that if Donald Trump wants to create well-paid jobs that don’t require a college education, he should foster the growth of solar rather than pursuing deals, one-by-one, to prevent U.S. manufacturers from shipping jobs overseas.

Last year, solar companies created more than 60 jobs for every one job Donald Trump and Mike Pence preserved by giving a tax break to Carrier. Ultimately, the jobs saved at the Carrier plant may be lost to machines. Meanwhile, jobs in solar are destined to keep growing.

This post appeared originally in Think Progress on February 7, 2017. Reprinted with permission.

Jeremy Deaton writes for Nexus Media, a syndicated newswire covering climate, energy, policy, art and culture. You can follow him at @deaton_jeremy.

This week in the war on workers: Federal job levels are low but Trump wants to drive them lower

Monday, January 16th, 2017

 

 

Donald Trump says he’s all about jobs, but at the same time he wants a federal hiring freeze. Supposedly there are just too many federal workers and the government should save money by getting rid of them. Here’s the reality:

  • There were an average of 2.8 million federal employees in 2016, representing only 1.9 percent of the nation’s 144 million civilian[2] jobs. This share ties with 2015 for the lowest federal share ever recorded, with data going back to 1939, and it’s far below its post-World War II average of 3.3 percent. (See Figure 1.)
  • The number of federal jobs rose by just 18,000 (0.6 percent) over the last eight years; in contrast, the number of jobs in the country grew by 11.3 million (8.3 percent) during the same period.[3]
  • The number of federal jobs as a share of the nation’s population in 2016 was tied with 2014 and 2015 for its lowest share on record.

Not to mention, these federal jobs include little things like the Centers for Disease Control, Medicare, national parks, food inspection, and other services and protections that many of us kinda like. “Freeze federal hiring” is something that sounds good to some people if you strip it of the specifics so they don’t think about what exactly is being cut. If Trump followed through with the kind of big cuts he’s implying, chances are it would not be a popular move.

This article originally appeared at DailyKOS.com on January 14, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Union workers, not Donald Trump, pushed Fiat Chrysler into creating 2,000 jobs

Tuesday, January 10th, 2017

Great news: Fiat Chrysler has announced a $1 billion, 2,000-job investment in plants in Michigan and Ohio. Donald Trump didn’t quite claim credit in his predictable tweet about the news, but Reuters, for instance, reported the story with the headline “Fiat Chrysler ups the ante as automakers respond to Trump.”

Except that’s not what happened at all. In 2015 contract negotiations, the UAW pushed Fiat Chrysler to invest in American manufacturing, and got promises on that front. That led to what we’re seeing now, the Detroit News reports:

The announcement is the final phase of an industrialization plan announced in January 2016, which was a significant part of the automaker’s contract negotiations with the United Auto Workers in 2015. The plan called for the realignment of the company’s U.S. manufacturing operations to move away from cars to more-profitable Jeep and Ram products. […]

[CEO Sergio] Marchionne appeared to try and distance the announced moves from having anything to do with President-elect Donald Trump, saying they “have been under discussion with Dennis Williams and the rest of the UAW leadership for some time.”

Working people fought for this. Don’t let Donald Trump get the credit that goes to those union workers.

This article originally appeared at DailyKOS.com on January 9, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

This week in the war on workers: SoftBank investment is not necessarily something to look forward to

Monday, December 19th, 2016

 

Donald Trump’s claim that, because of him, SoftBank would be investing $50 billion in the U.S. and creating 50,000 jobs was greeted somewhat less credulously than his Carrier claims. But it’s still worth an extra look at the details. It’s not just that SoftBank had already planned a major investment fund before the election:

Worse yet, this deal is lose, lose, lose for the domestic economy. First, this inflow of foreign capital will bid up the U.S. dollar, which will reduce the competitiveness of U.S. manufacturing by making imports cheaper and exports more expensive. This will increase the U.S. trade deficit and reduce employment in U.S. manufacturing. The U.S. dollar has gained about 25 percent in the past two-and-a-half years, and one-fifth of that increase has occurred since the election. As a result, the trade deficit in manufactured goods increased sharply in 2015 and is poised for another increase after the recent run-up in the dollar. Meanwhile, the United States has lost 78,000 manufacturing jobs since the first of the year due, in part, to the rising trade deficit.

Second, foreign investment in the U.S. economy is dominated by foreign purchases of existing U.S. companies. Between 1990 and 2005, foreign multinational companies (MNCs) acquired or established domestic subsidiaries that employed 5.25 million U.S. employees. The vast majority (94 percent) of jobs associated with those investments were in existing firms acquired by foreign MNCs. However, 4 million of those jobs disappeared through layoffs or divestiture of part or all of those companies […]

SoftBank provides a clear example of plans to acquire and merge existing U.S. businesses.

This article originally appeared at DailyKOS.com on December 17, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Coal Communities Ask Trump To Honor His Promises

Friday, December 16th, 2016

Coal miners, their communities and Faith groups are calling on President-presumed-Elect Donald Trump to honor his campaign promise to help coal workers. In an “Open Letter to President-Elect Donald Trump from coal miners,” hundreds of coal miners from Appalachia to Western coal lands asked for help for coal communities across the country.

They want Trump to take action to make sure coal CEOs and companies keep promises to restore the landscape and local environments by “reclaiming” the old mines, which would mean jobs in coal communities. They also asked Trump to protect the pension and health benefits they were promised. The companies and CEOs made millions from the mines and should not be allowed leave behind a devastated environment and ruined communities.

The letter was organized by Interfaith Worker Justice (IWJ), a network of Faith groups and worker centers working “to mobilize people of faith and work advocates in support of economic justice and worker rights at the local, state and national levels.” It asks Trump to stop coal CEOs and companies from abandoning their responsibility to clean up old mines.

The letters asks Trump to, “Ensure federal and state governments use every legal option to prevent coal companies from shirking their commitment to reclaim and repair the public lands mined for private profit.”

Please visit the website Help Coal Workers to read stories from coal workers, read the letter and sign a petition asking Trump to honor his promises.

For example, one of those stories:

“I worked in the mines for 25 years until I had an accident and could not work anymore,” said Charles E. Boyd of McCalla, Alabama. “I am on disability due to my work injury. I also have black lung. My pension and health benefits was promised to coal miners by our government. Please keep the promise.”

The Open Letter to President-Elect Donald Trump from coal miners:

Dear Mr. President-Elect Trump,

Dear Congressman Zinke, nominee for Secretary of the Department of the Interior,

Anybody who works on American coal mines knows that the industry is rapidly changing. Mines are closing, coal companies are declaring bankruptcy, and many of us are losing our jobs and our livelihoods. For some of us, these are the only jobs that we’ve ever known – once assured of a lifelong and stable career with good pay and a community in which to raise a family. No more.

We all have strong opinions about why our industry is suffering: which politicians or whose agenda is to blame. Regardless of politics, the bottom line is that we need to take care of our brothers and sisters who are facing uncertain times.

That means ensuring that coal companies follow through on their commitments to coal miners across the country. As you take action to revitalize the coal industry, we urge you and Congressman Zinke to do everything possible to hold true to your promise on the campaign trail that you are beholden to “no special interest. My only interest is you, the American people.”

Here’s how the Trump Administration can be a champion for coal mining communities in crisis:

Ensure federal and state governments use every legal option to prevent coal companies from shirking their commitment to reclaim and repair the public lands mined for private profit.

Through bankruptcy proceedings, we have learned that several companies are working to drastically reduce their financial and legal responsibility to reclaim mined land.

Any new or expanded coal leasing should be in concert with the strongest possible assurances that coal companies will honor their obligations to communities to create jobs by reclaiming and rehabilitating mined land.

Work with Congress to increase revenue and funding for communities as well as programs that support local economies.

There are a number of pieces of legislation on the table in Congress that would invest in coal communities, fund reclamation and economic revitalization projects, and protect promised benefits to coal miners and their families.

We urge you to work with Congress to pass these laws if they do not move forward before your inauguration

We, the undersigned coal miners and concerned individuals from across the country, demand action that will bring relief to coal communities.

This post originally appeared on ourfuture.org on December 15, 2016. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

 

Indiana’s Carrier Factory Cuts Focused The “Trade” Election Issue

Wednesday, May 4th, 2016

dave.johnsonSometimes an event comes along that crystallizes people’s awareness of an issue. It is just the right things at the right time. The layoffs at the Indianapolis Carrier air conditioner factory are an example of this kind of event.

The layoffs have focused many people’s feelings about our disastrous “trade” agreements that enable, even encourage, companies to move jobs and factories out of the country so that executives and Wall Street can pocket the wage and environmental-cost differential for themselves.

What Happened At Carrier?

In February air-conditioner manufacturer Carrier, a wing of United Technologies, announced that beginning next year it will move its Indianapolis production to Mexico and lay off the company’s U.S. workers. (It will also gut the factory’s suppliers and surrounding businesses.) The announcement was caught on video and went viral just as the presidential campaign was focusing on the disastrous effects of our country’s “trade” policies.

United Technologies reported $7.6 billion in profits for 2015. This was up from $6.2 billion in 2014. The company is spending $12 billion to purchase its own stock, which manipulates an increase in the stock price. That gives an idea of just how much cash the company has at its disposal. They use plenty of it to enrich executives, with their CEO getting almost $10 million in 2014 after getting more than $20 million in 2013.

Meanwhile, Mexico pays wages averaging $2.70 an hour for manufacturing jobs. By moving production there, the company, executives and Wall Street shareholders can pocket the wage differential. Carrier’s Indianapolis workers, suppliers, businesses, tax base, housing prices and job market? Too bad for them, but that’s not United Technology’s problem.

Workers Driven To “Outsiders” Sanders, Trump

Indiana’s presidential primary is Tuesday, and the Carrier layoffs have become an issue in the campaign. Zach Carter, reporting at The Huffington Post, in “Watch Corporate America Turn A Roomful Of Workers Into Bernie Sanders And Donald Trump Supporters,” writes about the effect of that video announcing the layoffs:

“Throughout the transition, we must remain committed to manufacturing the same high-quality products,” an executive can be heard insisting in a video of the announcement.

“Yeah, fuck you!” a member of the crowd responds.

“Please quiet down,” the official says. “This was an extremely difficult decision.”

“Was it?!”

In his report, Carter explains how this fits into the larger national discussion of “trade” and the effect our “trade” policies have had on jobs and incomes, and why this is a boost to Bernie Sanders’ and Donald Trump’s “outsider” campaigns:

Both Republicans and Democrats have consistently backed economic policies over the past 35 years that have systematically gutted the American middle class. For decades, Congress has listened to corporate lobbyists who told our representatives that if they could just cut this one tax rate, or just ease this one regulation, there would be a renaissance of prosperity. The renaissance has happened for the rich. Everyone else has been left behind.

The middle and working classes have been hit hard by these economic policies that favor the upper-end “donor class.” This “establishment” abandonment of America’s middle- and working-class voters is a “YUGE” issue in this year’s presidential election, driving the insurgent campaigns of Sanders and Trump. In an example of how the Carrier layoffs are driving this, The Indianapolis Star reported on Trump’s campaign announcement, in April’s “Trump opens Indiana campaign by blasting Carrier, Republican nominating process“:

“You’re looking at a situation where the jobs are being ripped out of our states, out of our country, like candy from a baby,” he said.

He lambasted massive layoffs at air conditioner manufacturer Carrier’s plant in Indianapolis. The company and its affiliates announced in February they would eliminate 2,100 Indiana jobs as they move production to Mexico. The layoffs have been a favorite target of Trump, who said Wednesday he would “tax the hell” out of the company.

“You’re going to bring it across the border, and we’re going to charge you a 35 percent tax,” he said. “Now within 24 hours they’re going to call back. ‘Mr. President, we’ve decided to stay. We’re coming back to Indianapolis.’”

While the economic picture moves many voters toward both Sanders and Trump, it appears that Sanders is the once getting much of the support of the Carriers workers themselves. Dave Jamieson, also writing at HuffPo, has an article headlined “Union Representing Laid-Off Carrier Workers Endorses Bernie Sanders“:

The Carrier workers found themselves in the national spotlight after a video emerged in February that showed a company executive informing them that their jobs were going to Mexico. Since then, the Carrier story has worked its way into the stump speeches of presidential candidates on both the left and the right, as they have pilloried the company for its plans to offshore 2,100 jobs.

Workers at the plant are represented by the United Steelworkers Local 1999, based in Indianapolis. …

Hugunin said the union decided to back Sanders because of his consistency in opposing trade deals such as the North American Free Trade Agreement, which removed trade barriers between the U.S. and Mexico.

With the Indiana primary on Tuesday, Sanders has been showing up and talking about the Carrier layoffs. Last week WFYI Indianapolis reported:

As many as a thousand union members and supporters of Democratic presidential candidate Bernie Sanders rallied outside the Indiana Statehouse Friday in support of laid-off Carrier factory workers.

Sanders’ last-minute appearance at the protest came days before Tuesday’s primary election, where the Carrier story has taken center stage.

The diverse crowd on the statehouse lawn wielded signs reading “Keep it made in America” and “Save our jobs, stop corporate greed,” and chanted union slogans like “stand up, fight back.”

Many of them were there just for Sanders, who gave an energetic speech calling Carrier’s plans to close its Indianapolis factory and move 1,400 jobs to Mexico “unbelievable.”

We will see after the polls close Tuesday know how this affects the Indiana primary.

Racing To The Bottom

Moving jobs to Mexico and other low-wage countries impoverishes American workers and devastates entire regions of the country, while enriching executives and Wall Street shareholders. Our country used to “protect” our democracy with its good wages and environmental protections by assessing a tariff on goods coming from countries that exploit workers and the environment. This prevented the cost savings gained from this kind of exploitation from undermining American workers and their quality of life.

Since “free trade” ideology took hold in the 1970s, undoing these protections and allowing companies to move production out of the country, our country has had a trade deficit every single year, and American workers have not seen a wage increase. Wall Street’s share of the economy (and political power) has soared while manufacturing’s (and workers’) share has declined. Inequality has accelerated.

This kind of “trade” trade-off is often justified as good for the workers in the low-wage countries. However, Reuters provides an example of how this just is not the case:

But the same low wages that help make manufacturers competitive are a long-term drag on the economy.

[ …] Low wages are a huge incentive for both Mexican and foreign firms. One in seven Mexican workers earn the average minimum wage of 65.58 pesos ($5.10) a day or less, national statistics office INEGI says. The average hourly wage in Mexico – home to Carlos Slim, one of the world’s richest men – is 31.3 pesos ($2.43).

Manufacturing workers fare better with wages averaging about $2.70 an hour but they make up only 16 percent of the labor force and their pay is way below the $19.50 per hour in the United States, figures from INEGI and the U.S. Bureau of Labor Statistics show.

[ …] Mexico City’s center-left mayor Miguel Angel Mancera has called for a national debate on how to improve wages. “Could it be that the Mexican economy doesn’t grow because the level of income for workers is so low?” he said.

Summary: “Could it be that the Mexican economy doesn’t grow because the level of income for workers is so low?” Workers there are paid so little that they not only can’t afford to buy things made in the U.S., they can’t even get by in Mexico, and this is dragging down Mexico’s economy along with ours.

Workers here are left fighting each other for the remaining low-wage jobs. Entire regions of our country are left devastated – Flint and Detroit, Mich., and the rest of the Rust Belt. “Free trade” has delivered nothing but misery and destruction to so many … but made a very few people enormously wealthy. The public is sick and tired of the “establishment” that brought this on us.

Or, as Atrios put it Monday,

This is the simple fact that our political class (who are mostly rich) fails to grapple with. I think they see the world as a combination of the way their peers see it (and they’re mostly rich!), some 30 year old vision of Middle Class America, and The Poors. They don’t get that middle class America are increasingly becoming like the poors. Maybe a bit more money, maybe a bit better lifestyle, but living paycheck to paycheck with student debt and one financial (medical, etc..) event away from nothing.

… I’m sure we can throw a few more credits into the tax code and that will solve everything.

Maybe he’s right. Maybe a few more tax credits for the already-wealthy will fix everything. Maybe another “trade” deal encouraging even more factories to move somewhere else will fix everything. After all, prices will be even lower as more things are made and done by exploited workers in places that don’t protect the environment. What could go wrong?

This blog originally appeared at ourfuture.org on May 3, 2016. Reprinted with permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

 

Kansas Republicans Again Stab Workers, And Democracy, In The Back

Tuesday, May 3rd, 2016

poole-60x60Once again, that conservative maxim about the government that’s closest to the people serves the people best was thrown out the window by conservatives when it comes to protecting the interests of workers against the abuses of businesses.

The latest example is Kansas, which just passed a law that said that local governments could not pass laws regulating just-in-time work scheduling, the practice of scheduling workers for shifts with as little as a few hours notice. The practice makes it impossible for workers on such schedules to plan to work second jobs or attend classes during their off hours. Employers who engage in this real-time scheduling expect workers to be on call, uncompensated, for when they might be called to work.

Workers subjected to these kinds of schedules often do not know how many hours of work they will have each week – and thus can’t predict how much they earn.

The bill, passed by the overwhelmingly Republican legislature and sent to ultraconservative Sen. Sam Brownback, pre-empts local governments in other areas as well, including their ability to impose nutritional labeling or content laws (thus a jurisdiction could not require restaurants to post the caloric content of their food) and their ability to police real estate transactions or rental inspections.

It is a continuation of a trend that has picked up momentum in recent years as more harshly conservative state legislatures have opted to clamp down on the ability of progressive enclaves in their states to govern their jurisdictions as they see fit.

That happened recently in North Carolina, where a state law was passed to invalidate local LGBT-rights ordinances. North Carolina is also one of 19 states that have laws on the books telling cities that they cannot pass their own minimum-wage laws. The list – compiled by the National Employment Law Project – is a rogue’s gallery of worker-unfriendly states: Alabama, Colorado, Florida, Georgia, Indiana, Idaho, Kansas, Louisiana, Michigan, Mississippi, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah and Wisconsin.

What the Kansas legislature was attempting to prevent was the spread of laws like one that passed last year in San Francisco, the “Predictable Scheduling and Fair Treatment for Formula Retail Employees Ordinance.” According to this fact sheet, the ordinance requires larger employers to post work schedules for employees at least two weeks in advance and requires employers to give due consideration to employee requests for changes. If an employer makes last-minute changes to the work schedule or requires a worker to be on call but does not actually summon the worker to work, the ordinance sets out how the worker is to be compensated for his or her time.

The organization A Better Balance has been fighting to get a bill called the Schedules That Work Act passed at the federal level. You can imagine the uphill battle getting such legislation passed nationally will be, when conservative legislatures won’t even allow democratically elected local officials to rein in the abuses against workers within their municipal boundaries.

This blog originally appeared at ourfuture.org on May 2, 2016, Reprinted with permission.

Isaiah Poole Worked at Campaign for America’s Future, attended Pennsylvania State University, and lives in Washington, DC.

Wal-Mart Killed At Least 400,000 Jobs In A Dozen Years, While The Waltons Got Richer

Friday, January 22nd, 2016

If you want to know why a political revolution is necessary (and why the status quo’s most intellectually fraudulent campaign in recent Democratic primaries is such a threat to working people), you need only check out this new report from our friends at the Economic Policy Institute. Wal-Mart (that would be the board the status quo candidate sat on without uttering a peep while millions of women were discriminated against and the Waltons pursued their middle-class killing business plan) essentially obliterated, conservatively, 400,000 jobs in a decade or so.

Here’s how:

This paper updates earlier work (Scott 2007) to provide a conservative estimate of how many jobs have likely been displaced by Chinese imports entering the country through Wal-Mart:

  • Chinese imports entering through Wal-Mart in 2013 likely totaled at least $49.1 billion and the combined effect of imports from and exports to China conducted through Wal-Mart likely accounted for 15.3 percent of the growth of the total U.S. goods trade deficit with China between 2001 and 2013.

  • The Wal-Mart-based trade deficit with China alone eliminated or displaced over 400,000 U.S. jobs between 2001 and 2013.

  • The manufacturing sector and its workers have been hardest hit by the growth of Wal-Mart’s imports. Wal-Mart’s increased trade deficit with China between 2001 and 2013 eliminated 314,500 manufacturing jobs, 75.7 percent of the jobs lost from Wal-Mart’s trade deficit. These job losses are particularly destructive because jobs in the manufacturing sector pay higher wages and provide better benefits than most other industries, especially for workers with less than a college education.

  • Wal-Mart has announced plans to create opportunities for American manufacturing by “investing in American jobs.” To date, very few actual U.S. jobs have been created by this program, and since 2001, the growing Wal-Mart trade deficit with China has displaced more than 100 U.S. jobs for every actual or promised job created through this program.

China has achieved its rapidly growing trade surpluses by manipulating its currency: it invests hundreds of billions of dollars per year in U.S. Treasury bills, other government securities, and private foreign assets to bid up the value of the dollar and other currencies and thereby lower the cost of its exports to the United States and other countries. China has also repressed the labor rights of its workers and suppressed their wages, making its products artificially cheap and further subsidizing its exports. Wal-Mart has aided China’s abuse of labor rights and its violations of internationally recognized norms of fair trade by providing a vast and ever-expanding conduit for the distribution of artificially cheap and subsidized Chinese exports to the United States. [emphasis added]

And:

Since Wal-Mart’s exports to China were negligible, the rapid growth of its imports had a proportionately bigger impact on the U.S. trade deficit and job losses than overall U.S. trade flows with China (since the rest of U.S. trade with China does include significant U.S. exports to that country). On average, each of the 4,835 stores Wal-Mart operated in the United States in fiscal 2014 (Wal-Mart Stores Inc. 2014) was responsible for the loss of about 86 U.S. jobs due to the growth of Wal-Mart’s trade deficit with China between 2001 and 2013.

So, if for some reason, you shop at Wal-Mart, think about each of those workers whose job you helped eliminate by supporting this scar on the economy. While middle-class jobs disappear and people become even more impoverished, forcing them to shop at Wal-Mart, the Waltons became the richest family in the country, with $149 billion in wealth for six people.

Be my guest: continue to believe the fraudulent rhetoric coming from the status quo. Continue to live in a dream world and ignore the reality, and the record, continue to embrace the most amazing individual cognitive dissonance imaginable and fawn over a fraud in complete ignorance of the facts laid out.

And, then, don’t be surprised and weep when Wal-Mart grows, poverty widens and nothing changes.

This blog originally appeared in workinglife.org on December 22, 2016. Reprinted with permission.

Jonathan Tasini is the president of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years.  Hiss goal is to find the “white spaces” that need filling, the places to make connections and create projects to enhance the great work many people do to advance a better world. He is also publisher/editor of Working Life.

Obama administration cracking down on bosses who use temp workers to dodge labor laws

Thursday, January 21st, 2016

Businesses don’t just use temp staffing agencies to add workers for short periods when they need extra hands. Staffing agencies can also serve the valuable (to crappy employers) purpose of dodging responsibility. “That person may work in our business on our terms, but the staffing agency is their employer, so we’re not responsible for violating labor laws to exploit them,” is how the dodge basically goes. Now, the Department of Labor is taking steps against that, issuing guidelines on when the company using the staffing agency to hire temp workers should be considered a joint employer that’s responsible for the people working in its facilities.

“I think the majority of noncompliance that we see is people just not getting what the law is, and what their responsibilities are under it,” [Department of Labor Wage and Hour Division director David] Weil said in an interview. “We also find cases of people who are clearly playing games, and clearly trying to shift out responsibility, and often have structured things in a way that lead towards more noncompliance.”

Weil’s division has stepped up its proactive enforcement of situations where companies are functionally controlling the workers they order up from labor providers — and broadcasts its enforcement of egregious violations. Back in October, for example, investigators found that temp workers at a snack food producer in New Jersey were cheated out of overtime wages, and ordered the company to pay back wages, damages, and civil penalties.

That’s the most typical form of joint employment — a “vertical” arrangement, with one company hiring another, as the guidance describes. But joint employment can also be “horizontal,” when a worker might employed by two subsidiaries of the same company, but they never get overtime because their hours are tracked separately.

Business groups and congressional Republicans are predictably pissed that the Obama administration would have the nerve to suggest that employers follow the law, with House Republicans pointing out that the Department of Labor talked to the National Labor Relations Board, which is also cracking down on joint employer issues.

Low-road businesses have found a lot of ways around laws protecting workers, from these joint employer dodges to misclassifying workers as independent contractors to deny them minimum wage and overtime protections, unemployment insurance, and more. And every time the Obama administration cracks down, it’s a reminder of what’s at stake this November. The next president won’t just argue with Congress or even appoint Supreme Court justices. The next president will make the appointments that determine whether the Department of Labor is trying to make sure workers get paid for the hours they work or is looking for ways to let bad bosses off the hook.

This blog originally appeared in dailykos.com on January 20, 2016. Reprinted with permission.

Laura Clawson has been a Daily Kos contributing editor since December 2006 and Labor editor since 2011.

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