Outten & Golden: Empowering Employees in the Workplace

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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.

Takeaways from the 2014 Elections for Working Families

Tuesday, November 11th, 2014

Mary Kay HenryDespite a tough night with many close races, a key takeaway from Election Day is the progress made toward raising wages for working families for an economy that works for all of us, not just the wealthy few.

Raising the minimum wage was a winning issue yesterday in red, blue, and purple states.
In deeply conservative states like Nebraska and South Dakota, the economy isn’t working for working people and the message from voters was clear: we’ve got to increase wages.

In San Francisco, where workers will get to $15 an hour a year ahead of Seattle, we saw incredible momentum built from the Fight for $15, where workers have had the courage to come out and call for wages they can raise a family on without having to cobble together 2-3 jobs and still live on the brink.

Working families issues also prevailed in Oakland with the increase in the wage to $12.25 and earned sick time, which also passed in Massachusetts.

The minimum-wage results and wins in Governors’ races in Pennsylvania, Minnesota and Connecticut show that working families want action on higher wages.

I spent yesterday in Pennsylvania, where folks were so excited to get out and volunteer for Tom Wolf, who made it crystal clear from the very beginning the sharp contrast with Gov. Corbett on wages, healthcare, and education.

We need more champions like Tom Wolf, Mark Dayton and Dan Malloy. They won because of their leadership on the issues that families care about: higher wages, good jobs, better schools, and affordable healthcare. Full-throated champions of those issues can and will win.
The Fight for $15’s momentum continued even on a tough night like last night because of the boldness of the fast food workers, home care workers, Walmart workers and others. Their courage to stand up for a living wage is helping the nation understand that if you work hard for a living, you ought to be able to work one job and live a decent life

The wins in Pennsylvania, Minnesota and Connecticut and in the minimum wage initiatives show that there is a clear path forward for working people. Working people will keep fighting for higher wages and good jobs, at the ballot box, in the workplace, in our communities and on the street.

This blog originally appeared in SEIU.org on November 5, 2014. Reprinted with permission. http://www.seiu.org/2014/11/takeaways-from-the-2014-elections-for-working-fami.php

About the Author: Mary Kay Henry is the president of the SEIU.

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