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Posts Tagged ‘job growth’

The Trump Economy Myth and Job-Killing Policies

Thursday, April 13th, 2017

Making America Great Again; every time a U.S. company hires a hundred people, or even a dozen, President Trump’s support network blasts out the message that this is what he’s doing. Now they’re crowing that unemployment fell to 4.5 percent in March, even though many say this number underrepresents how many people are actually out of work.

Only 98,000 jobs were actually gained in the month, about half of what economists had expected. And even if these new jobs are something to crow about, it’s not as if they have anything to do with Trump.

Propaganda is one thing, but Trump’s actual policies will hurt job and wage growth once they kick in.

Obama Momentum

Remember when President Obama had been in office a few months, and the fiscal year 2009 deficit was reported to be $1.4 trillion? Right-wing propaganda outlets showed charts drawn to convey that the 2009 budget deficit was his fault.

The 2009 fiscal year budget ran from October 1, 2008 to September 30, 2009. Obama’s first budget year began the following month. The 2009 budget deficit wasn’t an “Obama deficit,” is was a Bush deficit. Obama did not have time to do anything. For the same reasons, the 2017 economy, and any health it has, is still Obama’s.

In fact, when Obama DID do something this is what happened:

That job reversal was the result of actual policies put in place by Obama, not Republican propaganda.

Propaganda, Not Policies

Like almost everything Republican, the Trump administration is almost entirely about propaganda, not actual, rubber-meets-road policy. Healthcare is the best example of this. After years of propaganda opposition to Obamacare, Republicans had no actual coherent, alternative policy plan to put forward, and were unable to come up with one when the opportunity came for them to do it. The actual policies they finally came up with would have caused 24 million Americans to lose their healthcare.

Propaganda might achieve a propaganda goal, policies get actual things done.

As of today, there is no real Trump economic policy in place. He has submitted a ridiculously extreme budget proposal. He has proposed to “study” trade. He has no real “trillion-dollar” infrastructure plan – his budget proposal actually cuts infrastructure spending – and his tax “reform” plan does nothing more than give corporations and wealthy people huge breaks.

Actual Trump Policies Undercut Jobs And Wages

Trump’s actual policies will undercut job and wage growth. Right off the bat, Trump’s budget proposal would eliminate as many 200,000 federal jobs.

Trump is trying to reverse the “overtime rule” that increases the salary threshold for receiving overtime pay from $23,660 per year to $47,476. This rule is a big deal and would mean that would immediately boost the pay of 12.5 million workers, if Trump allows it to go into effect. Even with the rule the percent of workers who are eligible for overtime pay would still be lower than it was in 1975.

Trump’s executive orders also undercut job and wage growth. He has removed protections against wage theft and rights violations by federal contractors, affecting one in five workers.

Another example of actual Trump policies affecting jobs is in the energy sector. Calling climate change a “hoax,” Trump wants to promote oil and coal jobs at the expense of wind and solar jobs. But the U.S. solar power industry now employs more workers than coal, oil and natural gas combined. He wants to gut the auto fuel economy rules, undercutting opportunities for renewable-fuel companies like Tesla to innovate.

Stocks Up But Trump Economy Is A Myth

The stock market has risen under Trump; Tomahawk missile-maker Raytheon stock just went way up. Cruise missile strikes aside, bumps like these aren’t based on economic fundamentals or sound projections, but instead on the expectation of windfalls for corporations and the already-wealthy stock-owning investor class through the huge tax cuts Trump has promised.

But beyond momentary market gains,  the idea of a booming Trump economy is a myth – at least for people who work. There are no actual policies, existing or on the horizon, aimed at actually boosting jobs and wages. Only bluster. In fact, Trump has said we need to reduce American wages to the point where we can be “competitive” with Mexico and China. Yes, he said that.

His executive orders so far undercut jobs and wages. His budget eliminates jobs. His dramatic cuts in the things government does to make our lives and economy better — education, scientific research, regulation, etc. — will eat the seed corn of our future prosperity.

Trump does not offer real policy, only the propaganda of the moment, to be reversed at the next moment if convenient.

This post originally appeared on ourfuture.org on April 10, 2017. 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.

98,000 Jobs Added to the Economy in March, Unemployment Is 4.5%

Tuesday, April 11th, 2017

The U.S. economy added 98,000 jobs in March and the unemployment rate declined to 4.5%, according to figures released this morning by the U.S. Bureau of Labor Statistics.

While the job growth was tepid in March, and the revisions for the numbers for January and February are weaker than earlier reported, the economy is continuing close to the trend of job growth that started under President Barack Obama. If we continue the trend of job growth over the past seven years he established, the economy will add another 25 million jobs in eight years. Oddly, the claim President Donald Trump has made is that he will create 25 million jobs.

Still, wage growth needs time to recover as does the share of workers employed so household incomes can recover to their 1999 peak. With modest job gains in March, the Federal Open Market Committee of the Federal Reserve that sets monetary policy needs to pause ahead of its proposed interest rate hike in June. The higher interest rates are meant to signal a return to normal, but we are not there, yet.

The biggest gains were in professional and business services (+56,000) and in mining (+11,000), while retail trade lost jobs (-30,000). Other sectors of note include health care (+14,000) and financial services (+9,000). According to BLS, construction employment saw little change in March (+6,000).

Employment in other major industries, including manufacturing, wholesale trade, transportation and warehousing, leisure and hospitality, and government, showed little or no change over the month.

Among the demographic groups of working people, the unemployment rates for adult women (4.0%), white people (3.9%) and Hispanic people (5.1%) declined in March. The jobless rates for adult men (4.3%), teenagers (13.7%), black people (8.0%) and Asian people (3.3%) showed little or no change.

This blog was originally posted on aflcio.org on April 7, 2017. Reprinted with permission.

Still Getting 'It' Wrong

Tuesday, March 14th, 2017

On Friday, the U.S. Bureau of Labor Statistics reported the economy gained 235,000 payroll slots in February and upped its estimates for December and January by another 9,000 jobs. Over the three-month period, that means an average job growth of 209,000 jobs a month. Including the ups and downs, over the past 30 years, the U.S. economy has averaged job growth of about 126,000 jobs a month. So this current rate of growth would suggest a strong labor market. Further, workers who transitioned from being out of the labor force into active job search were 2.3 times more likely to land a job than to be stuck unemployed and looking.  And unemployed workers were 1.3 times more likely to find a job than if they were to quit and drop out of the labor force discouraged. Over the year, average wages (not adjusting for inflation) rose 2.8%.

Watchers of the Federal Open Market Committee, the policymaking body of the Federal Reserve Board, are sure the FOMC will stick to its forward guidance and act to raise the fed funds rate; which is their tool for setting the tightness of monetary policy. Raising the rate signals faith in the strength of the recovery by the Fed; a strong sense the economy is nearing both its target for inflation and employment. And, it is likely, given recent statements from several Fed officials that these numbers may convince them that “normal” is just around the corner. But they are wrong.

Raising interest rates is a way to slow the growth of the economy. It is useful to prevent an economy from over-heating and setting price increases on a pace that would be difficult to reign in. If done properly, the Fed can guide the economy to a soft-landing, where it will sit growing at a rate just fast enough to stay at full employment.

Well, the problem is that is where the economy is now. Despite solid job growth over the past year, the unemployment rate has remained flat and annual nominal wage growth has remained steady at around 2.6%. As a simple arithmetic, if the number of jobs created slows, then the unemployment rate will have to rise, and wage growth will slow.

If the near term had great economic certainty, then it might be possible to agree that labor market might show more signs of tightening; rather than its present “goldilocks” state of flat unemployment and wages. But the near term has great economic uncertainty.

First, while wages are beginning to show growth, the share of people employed is still a significant distance from the share employed at the peak of 2007, which was below the peak of 1999. This means that household incomes have not caught up. A large share of the workforce is employed part-time, and while the recovery has seen mostly growth of full-time jobs, household incomes have not gotten back to full employment levels.

Second, a major driver of the real economy is the automobile industry sector. After over-correcting during the depths of the Great Recession and the historic collapse in demand, it has used the financial helping hand then-President Barack Obama lent, to recover and now reach record sales and a growth in employment and investment. But a substantial and rising share of auto loans have been made to African American and Latino communities using subprime lending tools.  During the initial stages of the recovery, delinquencies on auto loans declined. But, beginning in 2016, they started to rise. And they continue to rise.

The purchase of new cars has increased the supply of used cars, so the gap between new car prices and used car prices has been rising as the price of used cars is falling. Delinquencies on auto loans began when the Fed began moving from zero interest rates, since the loan rate on automobiles is tied to short-term interest rates. Higher short-term rates will further increase consumers’ costs of buying a new car, increasing the wedge between new and used car prices.

The threat is that if job growth slows, it will first affect the African American and Latino communities, already showing struggles with the onerous terms of the subprime loans. Those communities need more time for the labor market to recover. The best solution for the economy is for their income to pick up pace and out run the debt. Income-led buying leads to healthy sustainable recoveries. Raising interest rates when incomes lead the recovery simply slow the pace of buying and encourage savings rather than spending. The worse solution is to have the debt out run their income. If delinquencies increase more, the auto market will get a greater flood of used cars, driving the price of used cars down further and increasing the gap in price between used and new cars.

Over the past six months, in fact, lending activity has become more stringent for new borrowers in the auto sector and for small business. Such a credit tightening is normally associated with an economic downturn; not a healthy growing recovery about to overheat. Higher short-term rates will only exacerbate that problem.

The problem is clear, at some point the new car market will go into recession; which means the auto industry will be in recession; which means the economy will be in recession.

Third, compounding the near term uncertainty, is the war that President Donald Trump has declared on the immigrant community. Fear and uncertainty are high in communities where many workers and family members are undocumented. These workers are fully integrated into our communities. They are wives, husbands and parents of legal residents and American citizens. These households live under a cloud. Fearing deportation, or legal fees to protect loved ones, millions of households are unlikely to buy new cars, or may be deciding to horde cash and stop making payments on cars that have been purchased. This is an uncertainty with a magnitude we have never faced, and therefore is too great a threat to ignore.

Fourth, the increase in people with health insurance because of the Affordable Care Act has meant job growth in the health sector at a faster rate than the rest of the economy. The current proposals of the Republican Congress to repeal the Affordable Care Act all will lead to a decrease in the number of Americans with health insurance. For this reason, the major hospital associations and the American Medical Association oppose the Republican plan. The threat to this market will have real repercussions on job growth in the one high-wage sector with fast job growth. And the wind down of federal Medicaid support to those states that extended health coverage using Medicaid will cause huge ripple effects on state budgets, which have not fully recovered from the drastic loss of revenues during the Great Recession. This will mean further pressures on recovering state investment in public colleges and universities.

Finally, the proposed budget cuts put forth by the Trump administration would gut public investment in education, housing and the environment. The austerity that has been proposed will cut federal jobs. And, just when the Medicaid cuts are going to hurt state budgets and so put more pressure to raise tuition at public two- and four-year colleges, the Trump administration is proposing cuts to Pell Grants and returning the student loan market to the more expansive private sector.

Thoughts that huge tax cuts to high-income households will offset a downturn in automobile sales, further disruption in the rising costs of college tuition or a dismantling of the health sector are irrational. We have lived through big tax cuts to the wealthy under former President George W. Bush. They were insufficient to pull the economy out of the 2001 downturn in any timely fashion; and, he had the help of low interest rates, a federal deficit swelled by tax cuts and war time expansion of military budgets, as well as a relatively healthy state unemployed insurance system. The current unemployment insurance system is greatly weakened and cannot provide the automatic stabilizer so vital to dampening a recession.

These all point to a real danger that the Fed may be a great threat to what is a more fragile economy than appears at the moment. The drive to be “normal” in a world that is clearly not normal, may put us in danger of a downturn that will be difficult to recover from given the instability shown in the White House.

This blog originally appeared in aflcio.org on March 13, 2017.  Reprinted with permission.

William E. Spriggs serves as Chief Economist to the AFL-CIO, and is a professor in, and former Chair of, the Department of Economics at Howard University. Follow Spriggs on Twitter: @WSpriggs.

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.

The Economy Adds 227,000 Jobs in January, and Unemployment Little Changed at 4.8%

Monday, February 6th, 2017
The U.S. economy added 227,000 jobs in January in the last employment report of the the Barack Obama administration. Unemployment was little changed at 4.8%, according to figures released this morning by the U.S. Bureau of Labor Statistics. President Donald Trump is inheriting a relatively strong economy based on years of work that Barack Obama and his administration did to bring us out of the horrible recession brought on, in part, because of George W. Bush-era deregulation and weak enforcement. Obama inherited a failing economy, with 589,000 jobs lost in January 2009 and an unemployment rate in February 2009 of 7.6%. Trump, on the other hand, is inheriting a much stronger jobs market, with 227,000 jobs added in January 2017 and an unemployment rate of 4.8%. Trump’s challenge is to continue the pattern of job growth and rising wages. The administration needs to create policies benefiting working people so the recovery continues.
The Economy Adds 227,000 Jobs in January, and Unemployment Little Changed at 4.8%

In response to the January jobs numbers, AFL-CIO Chief Economist William Spriggs tweeted:

 

Last month’s biggest job gains were in retail trade (46,000), construction (36,000), financial activities (32,000), food services and drinking places (30,000), professional and technical services (23,000), health care (18,000), transportation and warehousing (15,000), professional and business (15,000), and financial activities (13,000). Employment in other major industries, including mining and logging, manufacturing, wholesale trade, transportation and warehousing, information, and government, showed little change over the month.

Among the major worker groups, the unemployment rate for Asians (3.7%) increased in January. The jobless rates for adult men (4.4%), adult women (4.4%), teenagers (15.0%), whites (4.3%), blacks (7.7%) and Hispanics (5.9%) showed little or no change over the month.

The number of long-term unemployed (those jobless for 27 weeks or more) was little changed in January and accounted for 24.4% of the unemployed.

This blog originally appeared in aflcio.org on February 3, 2017.  Reprinted with permission.

Kenneth Quinnell: I am a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, I worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  My writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.  I am the proud father of three future progressive activists, an accomplished rapper and karaoke enthusiast.

Trying to Teach Old Dogs New Tricks

Monday, September 26th, 2016

Last December, after a long period of keeping the Fed funds rate near zero, the FOMC voted unanimouslyto raise the Fed funds rate by one-quarter to one-half points. It was anticipated that would be the first in a series of increases of similar small amounts. But, over the course of this year, the economy has run rather flat. Employment in the areas sensitive to interest rates like construction and manufacturing, after employment gains during 2015, ran flat. Durable goods manufacturing, which had been declining during 2015, continued to fall. In 2015, the unemployment rate fell from 5.7% in January to 5.0% in October. It has since remained stuck at about that level.

Ideally, when the Federal Reserve gets things right, the economy runs neither too hot or too cold. Eight months of flat unemployment rates and tepid GDP growth would suggest the Fed has clearly succeeded in finding a landing that, so far hasn’t meant crashing the economy. At least, on Wednesday, the evidence from modest GDP growth, flat unemployment and very low inflation convinced the six Board of Governors and the president of the New York Federal Reserve Regional Bank to hold steady; a tribute to Janet Yellen’s leadership to stay focused on the data and the real economy.

But, the other three regional bank presidents, Esther George of Kansas City, Loretta Mester of Cleveland and Eric Rosengren of Boston, all voted to raise the rate now. Another point of context is understanding the global economy is growing slower. The other major world economies, Europe, Japan and China, are struggling with slow growth. Their central banks are operating with either zero or negative interest rates. America’s modest growth looks very good next to their anemic performance. So this is making the dollar very strong. And that helps to explain the weakness of U.S. manufacturing because a strong dollar hurts U.S. exports. So even modest increases in U.S. interest rates are big by global standards and could further disadvantage U.S. manufacturing.

A second context is that the excess level of savings, globally, is chasing down projections of interest rate levels. Currently, the consensus at the Fed is that in the midterm, the Fed funds rate is likely to be around 1.9% at the end of 2018, and in the long run the normal rate is expected to be about 2.9%. On the eve of the Great Recession, the Fed funds rate was 5.25%. Compared to 2.9%, a raise to between one-half and three-quarters is not small. It isn’t like when the “normal” rate was above 5%.

The current tension in the FOMC between the Board of Governors and the regional bank presidents continues the controversy whether banks have too much say. Independence of the Fed from the political process is important. But, so too is Fed independence from the banks they need to regulate and oversee to make sure we have economic stability. The vote from Wall Street was positive. The stock market gains show a consensus the Fed is doing it right.

This blog originally appeared in aflcio.org on September 23, 2016.  Reprinted with permission.

William E. Spriggs serves as Chief Economist to the AFL-CIO, and is a professor in, and former Chair of, the Department of Economics at Howard University. Follow Spriggs on Twitter: @WSpriggs.

Jobs Report: Change Still Needed

Friday, July 8th, 2016

The June jobs report – a cheery 287,000 new jobs, with unemployment ticking up to 4.9 percent – is cause for both relief and concern.

The relief is that jobs creation picked up after the slowdown of April (revised upward to 144,000) and May (revised downward to 11,000). Even subtracting the 35,000 jobs “created” by striking Verizon workers returning to work, the June report suggests an economy that is continuing to grow and generate jobs.

The continuing concern is the pace of that growth. Jobs creation is slowing, down from a monthly average of 229,000 last year, to 196,000 in the first quarter, and now to 147,000 in the second quarter. Yet over 15 million people are still in need of full-time work. The percentage of Americans of working age who are employed or looking for work is at 62.7 percent, still below pre-Great Recession levels. Average hourly wages ticked up by 2 cents in June, and wage growth remains slow – 2.6 percent over the past year – far below the levels associated with previous recoveries.

This is the last jobs report before the political conventions formally kick off the presidential campaign (which already feels like a recurring and unending nightmare). For Clinton and Democrats, the report provides some relief that the economy isn’t slowing dramatically. For Donald Trump and the Republicans, it provides continued evidence that the economy isn’t soaring. Working families are likely to continue to wonder when they will begin to share in the recovery.

For Democrat Hillary Clinton, these conditions pose particular perils. President Obama will want Democrats to tout his success – record months of private sector jobs growth, over 14 million jobs created since 2010, seven years of economic growth, unemployment down by more than half since the Great Recession he inherited, the strongest economy in the industrial world.

But most Americans aren’t sharing in the rewards. Median family incomes haven’t recovered to pre-recession levels. The wealthiest 1 percent captured a staggering 52 percent of the rewards of growth from 2009 to 2015. And now a weaker Europe post-Brexit and a stronger dollar suggest that our trade deficits will worsen, putting more pressure on jobs and wages.

Americans are looking for change, not for more of the same. Trump will be spouting that message, with a mix of bluster and preposterous policy to support it (build the wall, slash trillions in taxes, renegotiate the debt, and so on). Clinton and Democrats need to make a clear case on how they will change this economy to work for the many – generating more good jobs, higher wages, and a better deal for working people. More of the same offers no way out.

This blog originally appeared in ourfuture.org on July 8, 2016. Reprinted with permission.

Robert Borosage is a board member of both the Blue Green Alliance and Working America.  He earned a BA in political science from Michigan State University in 1966, a master’s degree in international affairs from George Washington University in 1968, and a JD from Yale Law School in 1971. Borosage then practiced law until 1974, at which time he founded the Center for National Security Studies.

Texans Say No to Steel Dumping, Yes to Jobs

Wednesday, June 4th, 2014

Image: Mike HallMore than 1,000 United Steelworkers (USW) members, their families, allies, lawmakers and U.S. Steel Corp. officials rallied Monday outside the company’s Lone Star, Texas, plant to spotlight the dumping by foreign manufacturers of specialty steel products vital to energy production and to urge the U.S. Commerce Department to enforce the nation’s anti-dumping trade laws.

Failing to fully enforce our trade laws puts more than 500,000 American jobs on the line and risks outsourcing the benefits of America’s energy boom.

One USW member urged Washington to create a level playing field for the nation’s steel industry:

We cannot compete in an unfair market. We need our trade laws enforced. We make the best steel in the world. As long as Washington enforces the rules, we can compete with anyone.

The products are Oil Country Tubular Goods (OCTG), and the U.S. industry is being squeezed by dumped imports from South Korea and other nations.

There is overwhelming evidence that these foreign OCTG products are being illegally dumped in the U.S. market—at prices below fair value and in deceptive ways designed to circumvent international trade laws.

Last year, the USW and U.S. steel manufacturers filed a case with the Commerce Department and a ruling is expected later this month or early July.

Click here and tell your elected officials you’re counting on them to stick up for America’s workers when the Commerce Department makes its critical ruling in the OCTG trade case.

Hat tip to the Alliance for American Manufacturing (AAM) blog. Learn more about the OCTG crisis from the AAM and from the USW.

Rallies are scheduled for June 16 in Fairfield, Ala., and June 23 in sites to be determined in Minnesota and Virginia.

This article was originally posted on AFL-CIO on June 3, 2014.  Reprinted with permission.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journaland managing editor of the Seafarers Log.  He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.

Frack Till You Drop

Monday, May 26th, 2014

AUTHORS: Mike Elk, Cole Stangler, and Rebecca Burns

This month, the AFL-CIO unveiled its annual “Death on the Job” report, which highlights the often-overlooked toll of workplace accidents and fatalities. This year’s biggest takeaway: the dangerous—and deadly—consequences of America’s fracking-fueled oil and gas boom.

In recent years, deaths in the oil and natural gas industry have seen an especially sharp rise. The toll jumped by a stunning 23 percent in 2012 alone. This trend dates back to 2008, when horizontal drilling and hydraulic fracturing, or “fracking,” ushered in a new wave of oil and gas drilling across the nation. Fracking “boom towns” in states like North Dakota and Wyoming, rich in the kinds of shale formations that frackers lust after for their oil and gas deposits, have in turn seen a wave of industry-related accidents and health problems.

“The escalating fatalities and injuries in the oil and gas extraction industry demand intensive and comprehensive intervention,” the AFL-CIO’s report reads. “Without action, the workplace fatality crisis in this industry only will get worse as production intensifies and expands.”

Oil and natural gas industry workers regularly face hazards such as burns and exposure to toxic substances, which can lead to serious injuries or even death. But there’s reason to believe that fracking workers face further dangers, the long-term consequences of which may not yet have even begun to manifest fully.

Use of frac sand, which typically has high silica content, is an integral part of the fracking process. In industry-speak, it’s known as a “proppant”: Injected deep into rock formations, frac sand creates fissures in the ground, releasing oil and gas. Recent studies suggest that fracking workers are at particularly high risk of exposure to silica dust from that frac sand. Over time, silica dust exposure can cause cancer, silicosis and other fatal diseases.

But while labor has decried the dangers associated with fracking, some unions have been taking increasingly aggressive stances in favor of the practice. In a bid to reverse devastating job losses, energy and construction unions have entered into labor-management partnerships with the American Petroleum Institute (API) and other industry groups, lining up alongside the same interests that oppose union organizing efforts and tougher safety regulations.

“We hear a lot of commotion from those who want to unnecessarily limit job growth, force higher energy bills on us all and stifle opportunity tied to this abundant domestic energy source that is improving our environment and our standard of living,” declared Dennis Martire, vice president and Mid-Atlantic regional manager of the Laborers’ International Union of North America (LIUNA) (an affiliate of the AFL-CIO’s Building Construction Trades Department), in an pro-fracking op-ed that he co-authored with a local Pennsylvania-based Chamber of Commerce president. In a recent statement to the Associated Press, Martire called shale drilling a “lifesaver and a lifeline for a lot of working families.”

This raises the questions of whether some unions are taking a contradictory approach to workplace safety in the oil and gas industry: urging intervention to stop accidents while encouraging expansion of a practice that has increased them. Critics say this approach is a self-defeating one. Now, this tension is playing out in a fight over a long-awaited federal rule that would limit workers’ exposure to silica dust.

Unions say ‘frack it’

Silica exposure is one of the oldest known workplace dangers, but the federal standards regulating it are more than four decades out of date, leaving them out of sync with both changes in the nature of workers’ exposure and the science surrounding silica-related diseases. Now, after years of entreaties by workplace safety advocates, there could be a light at the end of the tunnel for silica-exposed workers.

In April, the Occupational Safety and Health Administration (OSHA) concluded public hearings for a new rule that would effectively halve the permissible exposure limits for “respirable crystalline silica”—that is, the particles that, inhaled over time, can lead to silicosis and other diseases. OSHA estimates that the rule would save 700 lives per year.

While the AFL-CIO and a host of other labor groups struggle to ensure the new rule’s quick approval, they’re facing familiar foes: business lobbyists such as the U.S. Chamber of Commerce, the Construction Industry Safety Coalition and the American Petroleum Institute (API), which are lobbying OSHA to withdraw the rule. The API, which represents a slew of companies heavily invested in the fracking industry, charges that the proposed regulation would impose new compliance costs that are too painful for businesses to swallow. This is a familiar complaint from an industry famously averse to regulation.

But even as construction and building trades unions battle with the API over the new rule, they’ve aligned with the industry group when it comes to the expansion of fracking.

In 2009, 15 unions, including the Laborers’ International Union of North America (LIUNA) the International Brotherhood of Teamsters and the Building Construction Trade Department (BCTD) of the AFL-CIO, joined the pro-fracking, pro-Keystone XL “Oil and Natural Gas Industry Labor-Management Committee,” billed as “the first time that the oil and natural gas industry and its labor unions have agreed to work together formally.” According to a forthcoming briefing paper from the climate-conscious coalitionTrade Unions for Energy Democracy, the alliance “has been the source of numerous pro-fracking resolutions adopted by state-level federations of the AFL-CIO.  … In [multiple] states, unions have stood alongside the Chambers of Commerce, the National Association of Manufacturers and the American Petroleum Institute in supporting and promoting fracking.”

Critics say that the partnership has also locked building trades-affiliated unions into a “transactional relationship” with the oil and natural gas industry (as In These Times has reported previously). The API, for instance, was a key sponsor of the BCTD legislative conference this March. Meanwhile, unions have spent millions lobbying for the expansion of oil and natural gas projects that depend heavily on fracking. In New York State, for example, pro-fracking unions such as the International Brotherhood of Electrical Workers (IBEW) spent $1.4 million between 2007 and 2013 on lobbying in favor of expanded fracking in the state, according to watchdog group Common Cause. In Kentucky, LIUNA quickly emerged as one of the most prominent champions of the now-stalled Bluegrass Pipeline, a project that would transport natural gas liquids from the shale fields of Ohio to Louisiana’s Gulf Coast.

This relationship doesn’t end with drill-to-pipeline projects, either. More recently, building trades and their affiliates have backed industry efforts to start exporting a potentially lucrative and fracking-derived product from the United States—liquefied natural gas (LNG). Most notably, the BCTD has lobbied heavily for the construction of the hotly contested Cove Point export facility in Lusby, Maryland, siding with terminal operator Dominion Energy against a large protest movement. The United Association of Plumbers, Fitters and HVAC Techs, meanwhile, supports reforms that would speed up the federal LNG export-permitting process. Thanks in large part to this swell of pressure from the building trades, AFL-CIO President Richard Trumka offered his broad support for gas exports for the first time in January.

In all of these cases, construction and building trades unions say they’re motivated by the prospect of well-paid jobs. And indeed, partnerships with the energy industry have helped some unions win contracts to build energy pipelines and infrastructure serving export facilities. LIUNA Vice President Dennis Martire has said that the number of hours worked by LIUNA members on pipeline projects in Pennsylvania and West Virginia as a result of shale drilling increased from 400,000 hours in 2008 to 5.7 million hours in 2012.

But job figures have often fallen far short of industry projections. While industry-financed studies have claimed that fracking creates as many as 31 new jobs per well, a November 2013 analysis by the Multi-State Shale Research Collaborative, a coalition of policy groups who oppose fracking, found that on average, each new well drilled in the Marcellus Shale region between 2005 and 2012 created fewer than four jobs. And when it comes work at drilling sites, one of the most dangerous aspects of fracking operations, the workforce is still almost exclusively non-unionized.

“For the most part, [fracking jobs] are not good jobs, and they’re highly destructive,” says Joe Uehlein, a former Secretary-Treasurer of the AFL-CIO’s Industrial Union Department and current director of the Labor Network for Sustainability. “The idea of being for jobs simply because it’s a job, that’s something we have to re-examine.”

Dust in the wind

Silica-related diseases are typically associated with industries such as mining, construction and masonry. But as the shale boom continues—according to an October 2013 report from Environment America, fracking operations are now under way in 17 states—so, too, do the risks for workers in an industry that’s highly dangerous and still heavily non-union.

Silica-related diseases take far longer to manifest than the burns, broken bones, and the type of fatalities outlined in the AFL-CIO report, but recent evidence suggests that fracking workers are being exposed to alarming concentrations of silica. OSHA and NIOSH issued a hazard alert in 2012 after nearly 50 percent of air samples taken from a field survey of 11 fracking sites in five states were discovered to have silica rates exceeding the current rule’s permissible levels. That’s particularly notable because many safety experts consider the current exposure limit to be inadequate.

“These exposures were, in some cases, 10 times the amount of the allowable limits,” says Peter Dooley, a health and safety consultant for the National Council for Occupational Safety and Health (COSH) who testified before OSHA last month.

OSHA has said that approximately 25,000 workers at 444 fracking worksites would benefit from the proposed new rule, and estimates that additional protections—including better ventilation, a misting system and enclosed “operator booths” for the most exposed workers—would be required for 88 percent of fracking workers in order to comply with the change.

Concerned with the costs of compliance, business and industry groups are lobbying OSHA to withdraw the proposed new rule. “In drafting the Occupational Safety and Health Act, Congress never intended to protect employees by putting their employers out of business,” the American Petroleum Institute said in its written comments to OSHA, also arguing that while silica exposure does pose a hazard to workers, existing methods of reducing this exposure have been effective.

Meanwhile, a host of labor groups have testified in favor of the new rule, including the Laborers’ Health and Safety Fund of North America (LHSFNA), the AFL-CIO’s Building and Construction Trades Department and the International Union of Operating Engineers.

During API’s April 4 testimony, Walter Jones, associate director of occupational safety and health for LHSFNA, rebutted arguments made by the industry group on a number of points.

Though API has criticized OSHA for relying on insufficient evidence in its rulemaking, Jones notes that the industry group has kept its own data on fracking-related silica exposure—gathered through a survey of the fracking industry, as part of a voluntary safety effort focused on respirable silica—close to the vest. Currently, the API survey results are not available to federal regulators. A spokesperson for the STEPS Network, the API-coordinated safety effort, told In These Times in mid-May that the study was still ongoing, and that the data hadn’t been released simply because there wasn’t yet enough data to make analysis worthwhile.

But LHSFNA’s Jones calls API’s unwillingness to share this existing data “unfair and unfortunate.”  Following the OSHA hearings, he told In These Times, “The issue for me was that API member organizations are out there right now characterizing exposures and looking at controls, and I’d like for them to submit that to the record so that we can have a fuller picture of what’s going on.”

API also contends that silica-related deaths are decreasing, according to statistics from the Centers for Disease Control. In response, Jones contends, “Fracking is a relatively new phenomenon, and silicosis has a latency period of up to 20 years. This is a case where there are long-term consequences that we [typically] don’t deal with until after the bodies start piling up.”

An unsavory alliance

The fate of the proposed rule still remains uncertain. After extending its initial public comment period this year by nearly two months following pressure from industry groups, OSHA will now continue taking post-hearing arguments and briefs until July, leaving any potential regulation still a long way off.  While LIUNA and a number of other unions can attempt to counter API efforts to slow or weaken the new regulations during the hearing process, they remain key members of the Oil and Natural Gas Industry Labor-Management Committee. To some critics, this strategy—opposing API’s stance on a particular regulation, while allying with it and other industry groups on wide-ranging policy issues—looks a lot like labor shooting itself in the foot.

The new silica rule is the latest in a long line of workplace safety regulations opposed by API. The institute has fought union-led efforts to implement new regulations reducing workers’ exposure to the carcinogenic element benzene, as well as the lead in gasoline. API opposition to such regulatory efforts may have delayed these rules from coming into effect sooner, thereby putting affected workers’ lives at risk. In the same fashion, API’s demand that OSHA withdraw its current proposal on silica exposure could delay the rule’s future implementation.

Some in organized labor say the oil and gas industry can be made safer—it’s just going to take better regulation and eventual union representation of workers at drill sites.

On a press call discussing the new AFL-CIO report, In These Times asked AFL-CIO Director of Safety and Health Peg Seminario if she believed that labor-management partnerships in the oil and gas industry were productive in light of the sector’s alarming workplace fatality rate.

“I think it is a sector that needs organization, as do many,” Seminario said. “One of the things I would compare is what the experience has been in coal mining, for example. Which is a very dangerous industry where you’ve had a strong union and you have strong government oversight and has made a huge difference. I think we need to … bring that into oil and gas because clearly it’s just as hazardous.”

But others point out that the path of labor-management partnerships is unlikely to produce strong regulations. “I don’t recall a single time that API did anything other than obstruct, delay or file lawsuits over the introduction of any worker safety and health program,” says Bob Wages, former president of the Oil, Chemical and Atomic Workers (OCAW). “I can’t understand why [the building trades] would have anything to do with people who absolutely don’t give a shit if people die on the job.”

Moreover, this sort of approach still neglects the industry’s environmental impact, says Bob Wages, whose union mobilized a highly successful labor-environmental partnership during the 1973 Shell Oil Strike.

“The idea that a union will sit back and say, ‘Well, we’re going to cooperate with them because if we’re there, we’re gonna enforce health and safety, and that’s gonna have a positive effect on the environment’—I’ve never seen it [play out] in terms of how the industry responds to any of these concerns,” he says. “That’s just happy talk. There’s no relationship between building [a facility], and enforcing health and safety regulations in that phase of it, and what the industry does generally once it comes to pollution, [flouting] environmental regulations and damaging the environment.”

Some trade unionists have another path in mind: They argue that it’s time to seriously consider moving beyond fossil fuels. Not only is renewable energy generation better for the planet in the long-term, they note, it’s far safer for workers and their communities in the here and now.

The Canadian union UNIFOR, for example, has been at the forefront of such a forward-thinking approach within labor’s ranks, arguing that energy workers must also consider the health of the communities they work and live in. Even though the union represents workers in the oil and gas industry, last November it passed a resolution calling for a nationwide fracking moratorium.

“We’re going to find a way to build a sustainable future, we’re going to find a way to solve the climate crisis,” says Joe Uehlein of the Labor Network for Sustainability. “Labor will be far better off if it figures out how to get on that train and be a part of that movement, as opposed to sitting back and fighting it the way they often do.”

(In These Times reached out to the offices of the Building Trades Unions and the Laborers’ Mid-Atlantic region for comment, but did not receive a response).

 This article was originally printed on Working In These Times on May 23, 2014.  Reprinted with permission.
About the Authors: Cole Stangler, Rebecca Burns and Mike Elk are Schumann Fellows at In These Times magazine.

Higher minimum wages have been good for jobs in New England

Tuesday, August 28th, 2012

Laura Clawson

Here’s one more study that opponents of raising the minimum wage will ignore when they argue that a minimum wage increase would slow job creation. The Massachusetts Budget and Policy Center has looked at minimum wage rates and job creation across New England. Every state in New England has a different minimum wage, ranging from the federal rate of $7.25 in New Hampshire to a high of $8.46 in Vermont. And guess what? States that increased their minimum wages by more and had higher minimum wages did better, not worse, at keeping jobs during the recession and regaining them after the recession. That’s not to say that a higher minimum wage is the only explanation for those results:

Ultimately, a variety of factors affect job growth, and the recession has affected states in different ways. The different rates of employment loss and growth in New England states during this period was likely the result of a variety of factors, but the data do not provide any evidence that higher minimum wages prevent job growth.

This isn’t the first study that’s shown no negative effect, or even a positive outcome, of a higher minimum wage on employment. It won’t be the last. But since opponents of an above-poverty-level minimum wage are much more concerned with profit margins at Walmart and Taco Bell than with creating or losing jobs, the “higher minimum wage is a job-killer” canard isn’t going away any time soon.

(Via We Party Patriots)

This blog originally appeared in Daily Kos Labor on August 20, 2012. 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.

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