Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Automobile Industry’

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.

6 Ways We Could Improve NAFTA for Working People

Friday, December 30th, 2016

Today we released a blueprint for how to rewrite NAFTA to benefit working families. This past election there was much-needed discussion on the impact of corporate trade deals on our manufacturing sector and on working-class communities. The outline below puts forward real solutions that should garner bipartisan support if lawmakers are truly serious about realigning our trade policies to help workers.

We need a different direction on trade. This movement has been largely driven by working people. As we approach the inauguration of a new president, it is important that everyday working people’s perspectives lead the debate, starting with how to rewrite NAFTA.

The AFL-CIO has long supported rewriting the rules of NAFTA to provide more equitable outcomes for working families. To date, the biggest beneficiaries of NAFTA have been multinational corporations, which have gained by destroying middle-class jobs in the U.S. and Canada and replacing them with exploitative, sweatshop jobs in Mexico. It doesn’t have to be this way. With different rules, NAFTA could become a tool to raise wages and working conditions in all three North American countries, rather than to lower them.

6 Ways We Could Improve NAFTA for Working People

Key Areas for Improvement

1. Eliminate the private justice system for foreign investors.

NAFTA established a private justice system for foreign investors, thereby prioritizing corporate rights over citizens’ rights, giving corporations even more influence over our economy than they already have. This private justice system, known as investor-state dispute settlement, or ISDS, allows foreign investors to challenge local, state and federal laws before private panels of corporate lawyers. Although these lawyers are not accountable to the public, they are empowered to decide cases and award vast sums of taxpayer money to foreign businesses. Under NAFTA, these panels have awarded millions of dollars to corporations when local and state governments exercise their jurisdictional power to deny things such as municipal building permits for toxic waste processing facilities. ISDS gives foreign investors enormous leverage to sway public policies in their favor. Scrapping the entire system would help level the playing field for small domestic producers and their employees.

2. Strengthen the labor and environment obligations (the North American Agreement on Labor Cooperation and the North American Agreement on Environmental Cooperation), include them in the agreement, and ensure they are enforced.

The NAFTA labor and environment side agreements were not designed to effectively raise standards for workers or to ensure clean air and water. Instead, they were hastily patched together to quiet NAFTA’s critics. These agreements should be scrapped and replaced with provisions that effectively and robustly protect international labor and environmental standards. Violators should be subject to trade sanctions when necessary—so that we stop the race to the bottom that has resulted from NAFTA. Without stronger provisions, environmental abuses and worker exploitation will continue unchecked.

3. Address currency manipulation by creating binding rules subject to enforcement and possible sanctions.

Within months after NAFTA’s approval by Congress, Mexico devalued the peso, wiping out overnight potential gains from NAFTA’s tariff reductions. This devaluation made imports from Mexico far cheaper than they otherwise would have been and priced many U.S. exports out of reach for average Mexican consumers. Countries should not use currency policies to gain trade advantages—something China, Japan and others have done for many years. All U.S. trade agreements, including NAFTA, should be upgraded to create binding rules, subject to trade sanctions, to prevent such game playing.

4. Upgrade NAFTA’s rules of origin, particularly on autos and auto parts, to reinforce auto sector jobs in North America.

NAFTA’s rules require that automobiles be 62.5% “made in North America” to qualify for duty-free treatment under NAFTA. Even though 62.5% seems high compared with the Trans-Pacific Partnership’s inadequate 45%, it still allows for nearly 40% of a car to be made in China, Thailand or elsewhere. The auto rule of origin should be upgraded to eliminate loopholes (through products “deemed originating” in North America) and to provide additional incentives to produce in North America. This, combined with improved labor standards, will contribute to a more robust labor market and help North American workers gain from trade.

5. Delete the procurement chapter that undermines “Buy American” laws (Chapter 10).

NAFTA contains provisions that require the U.S. government to treat Canadian and Mexican goods and services as “American” for many purchasing decisions, including purchases by the departments of Commerce, Defense, Education, Veterans Affairs and Transportation. This means that efforts to create jobs for America’s working families by investing in infrastructure or other projects, including after the financial crisis of 2008, could be ineffective. This entire chapter should be deleted.

6. Upgrade the trade enforcement chapter (Chapter 19).

NAFTA allows for a final review of a domestic anti-dumping or countervailing duty case by a binational panel instead of by a competent domestic court. This rule, omitted from subsequent trade deals, has hampered trade enforcement, hurting U.S. firms and their employees. It should be improved or omitted.

This blog originally appeared at aflcio.org on December 20, 2016.  Reprinted with permission.
Jackie Tortora is the blog editor and social media manager at AFL-CIO.

Auto Workers Use Social Media to Increase Transparency in Contract Talks

Monday, October 10th, 2011

Laura ClawsonUnion contracts are voted on by the members who will work under them. Contracts, though, are complicated documents and what you know about them can greatly influence how they look. Additionally, most union members are not in the room where contracts are negotiated and can only go on the judgment of their representatives about whether the company might have been willing to bargain a better deal or was really immovable.

The New York Times‘ Nick Bunkley describes how the internet and social media are changing the information about new contracts to which union members have access, and are offering a place for them to talk, and talk back. Bunkley describes an array of new ways auto workers have had access to information as the UAW has bargained with GM and Ford: When tentative deals have been reached, workers have been able to download copies of the contract rather than relying on in-person briefings; workers have gotten email updates through the negotiation process and union staff have maintained Facebook and Twitter feeds with more limited public information.

Unions have been able to “rebut rumors […] rather than allowing them to spread unchallenged”:

Shortly after a Detroit television station reported that workers would get a signing bonus of $7,500, a message posted on Facebook from Jimmy Settles, the union’s vice president in charge of Ford negotiations, described the report as inaccurate and “designed to intentionally create false expectations.” The finished deal included a bonus of $6,000 for most workers, some of whom had begun posting on Facebook that they would vote against any contract with a bonus of less than $15,000.

“It allowed us to get to the membership quickly,” Mr. Settles said in an interview. “The one thing we always had to combat was the expectations of our members. Historically, we didn’t have the apparatus to get that information out.”

Workers and retirees have also used social media to talk to each other and to push back against what they see as problem areas in the contracts, albeit with limited success this time around. Transparency increased somewhat, but workers’ concerns seem to have been seen as something to be managed, not taken as an added voice in the negotiations. The long-term question is, will social media be another channel of top-down communication in which unions and employers are able to monitor and respond to rumors and set expectations, or will it be a way workers can actually push for more transparency and responsiveness and themselves alter the terms of negotiations?

This post originally appeared in Daily Kos Labor on October 10, 2011. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos. She has a PhD in sociology from Princeton University and has taught at Dartmouth College. From 2008 to 2011, she was senior writer at Working America, the community affiliate of the AFL-CIO.

Will Ford Refuse To Share Profits With Its Workers After Paying Its CEO $26 Million?

Thursday, September 29th, 2011

Image: Pat GarofaloThe United Auto Workers and General Motors are close to finalizing a new contract, following the first contract negotiations to take place between the two since GM was rescued by the Obama administration. But the UAW is still working on a deal with Ford, the only one of Detroit’s big three companies to turn down government aid.

Ford has had nine profitable quarters in a row, and paid its CEO, Alan Mulally, $26.5 million last year. But at the same time, it is fighting against giving its factory workers their fair share of the profits from the company’s success:

At The Rouge, Ford’s massive, 94-year-old factory complex in Dearborn, Mich., there’s talk along the assembly lines of winning back raises and bonuses lost when the company was near financial collapse in 2007. Workers, who assemble F-150 pickup trucks at the site, are upset that Ford is trying to cut labor costs, especially after nine straight profitable quarters and a $26.5 million pay package for CEO Alan Mulally.

When the company was going to fail, the workers “gave up cost-of-living pay raises, performance bonuses and other benefits.” Last year, Ford reinstated merit pay and some bonuses to the company’s salaried, white-collar workers, but has yet to do so for its hourly-wage factory workers.

“We have the big honchos taking multimillion-dollar bonuses and they can’t even give us back” concessions, said Joe Pack, 50, who works at Michigan Assembly in Wayne, Michigan. “Ford has to do a lot more,” agreed Gary Walkowicz, who works at Ford’s Dearborn, Michigan plant.

In 2010, CEO pay across the corporate world went up 27 percent, while worker pay went up just 2 percent. Ford’s continued profitability would not have been possible without its workforce, and the company should be sure to recognize that fact during contract negotiations.

This post originally appeared in ThinkProgress on September 28, 2011. Reprinted with permission.

About the Author: Pat Garofalo is Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.

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