Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘manufacturing’

President Obama’s Latest Manufacturing Push

Tuesday, October 28th, 2014

Dave JohnsonThe White House unveiled new executive actions on Monday
directing federal money toward new technologies, apprenticeship programs and competitions designed to assist small manufacturers. The idea is to make the U.S. a magnet for new jobs and investment.

 

The new executive action will:

  • Allow the Pentagon, NASA, and the Energy and Agriculture departments to spend $300 million to develop advanced materials and new technology for sensors and digital manufacturing.
  • Direct $100 million in Labor Department funds for apprenticeship programs aimed at advanced manufacturing.
  • Authorize the Commerce Department to spend $150 million over five years in 10 states to help manufacturers adopt and market new technologies.
  • Give manufacturers access to state-of-the-art facilities like those at national labs – to connect industry and universities on research and development and develop ‘technology testbeds’ where companies can design, prototype and test new products and processes.

President Obama began the Advanced Manufacturing Partnership in June 2011. The administration so far has launched four manufacturing innovation institutes – “hubs” – and there are four more on the way. They have also invested nearly $1 billion for community colleges to train workers for advanced manufacturing jobs.

There is expanded investment in applied research for emerging manufacturing technologies, and a new initiative to get returning veterans into jobs in advanced manufacturing.

This blog originally appeared in Ourfuture.org on October 27, 2014. Reprinted with permission. http://ourfuture.org/20141027/president-obamas-latest-manufacturing-push

About the Author: 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.

 

CHARTS: Economic Mobility Is Stronger In Union States

Friday, May 11th, 2012

waldron_travis_bio

The ability of American workers to be upwardly mobile in the economy depends heavily on where they live, according to a state-by-state analysis from Pew Charitable Trusts. The study, the first of its kind, found that workers in a group of states largely clustered in the Northeast and Midwest are more likely to achieve upward mobility, while workers in southern states are far less likely.

For the most part, the states in each group differ on one major characteristic: the states where upward mobility is more likely are almost all union states, while the states where mobility is less likely almost all are not. Of the eight states that outperform the national average for upward economic mobility, seven are union states, with Utah the lone exception. Eight of the nine that underperform the national average, however, are so-called “right to work” states, with Kentucky the only exception:

mobilitymapChart via USA Today

When relative mobility is considered, union states look even better. Every state but one (Utah) that outperforms the national average on relative mobility, defined as the percentage of residents starting in the bottom half of the national distribution who move up 10 or more percentiles in a 10-year period, is a union state. Meanwhile, 14 of the 15 states that come in below the national average are right-to-work states, with Missouri the only exception:

mobilitymap2

Chart via Pew Charitable Trusts

Though the study didn’t find (or attempt to find) a direct correlation between union representation and mobility, an economist at the W.E. Upjohn Institute for Employment Research in Michigan told USA Today that higher mobility there is likely linked to higher wages in manufacturing and public sector jobs, both of which tend to be more heavily organized. Those ties also exist in the other union states, which rely more on manufacturing than the right-to-work states.

As ThinkProgress has previously noted, unions played a significant role in the construction of the American middle class, boosting the mobility of lower-income workers. The decline in union representation, meanwhile, correlates closely with a sharp rise in income inequality over the last 40 years. Other studies have shown that workers who join unions earn higher wages and are more likely to have health and retirement benefits, and that union membership increases the likelihood of upward economic mobility.

This blog originally appeared in Think Progress on May 10, 2012. Reprinted with permission.

About the author: Travis Waldron is a reporter/blogger for ThinkProgress.org at the Center for American Progress Action Fund. Travis grew up in Louisville, Kentucky, and holds a BA in journalism and political science from the University of Kentucky. Before coming to ThinkProgress, he worked as a press aide at the Health Information Center and as a staffer on Kentucky Attorney General Jack Conway’s 2010 Senate campaign. He also interned at National Journal’s Hotline and was a sports writer and political columnist at the Kentucky Kernel, the University of Kentucky’s daily student newspaper.

Apple and Foxconn to Improve Working Conditions and Hours

Friday, March 30th, 2012

Laura ClawsonFollowing lots and lots of terrible publicity around the wages, working conditions and hours faced by Chinese workers manufacturing its iPhones and iPads, Apple asked the Fair Labor Association, an organization widely described as independent although it is funded by the corporations it oversees, to look into working conditions in the factories of its Chinese contractors. The FLA has now looked into Foxconn, the largest and most (in)famous Apple contractor, and:

Foxconn – which makes Apple devices from the iPhone to the iPad – will hire tens of thousands of new workers, clamp down on illegal overtime, improve safety protocols and upgrade worker housing and other amenities. [...]

Foxconn said it would reduce working hours to 49 hours per week, including overtime, while keeping total compensation for workers at its current level. The FLA audit had found that during peak production times, workers in the three factories put in more than 60 hours per week on average.

To compensate for the reduced hours, Foxconn will hire tens of thousands of additional workers. It also said it would build more housing and canteens to accommodate that influx.

Foxconn’s changes will also affect other brands with products manufactured by the contractor, such as Dell, Hewlett-Packard and Sony. It will also have an effect on competing contract manufacturers. Consumers, of course, can expect to pay slightly higher prices, although labor costs are a small fraction of the price of the devices, and if you’re going to complain that you’re paying a little more because Chinese workers are only working 49 instead of 60 hours per week, I don’t want to hear from you anyway.

Continuing oversight will be crucial, as it would be altogether typical for the improvements for workers to be rolled back once the spotlight was off Apple’s manufacturing process.

This blog originally appeared in Daily Kos Labor on March 29, 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.

Even With Daisey’s Lies Peeled Away, Apple’s Rotten Core Exposed

Thursday, March 22nd, 2012

Michelle ChenApple’s brand glared in the media spotlight this past week, after the public learned that performance artist Mike Daisey’s theatrical rendering of the struggles of Apple factory workers contained false claims—painfully exposed on an episode of the radio program This American Life. But if one fundamental truth has emerged from the scandal surrounding Daisey’s dramatic fudging, it’s that the lived reality of many Chinese workers is undoubtedly bleak—no embellishment needed.

Daisey’s personal account is gratuitously peppered with fabrications, but the story of systematic exploitation is essentially true. For years various watchdog groups have tried to hold Apple accountable for harsh working conditions in China, which have been linked to workplace-related suicides and health hazards. Since a number of young workers killed themselves in 2010, the consumer advocacy campaignMake IT Fair, together with the Hong Kong-based Students Against Corporate Misbehavior (SACOM),have documented systematic abuses: exhausting hours, an oppressive, militaristic workplace culture and, despite conciliatory pay hikes, extremely low wages in comparison to the tremendous corporate profits and brutal working conditions.

It should be noted, however, that Daisey’s “dramatic license” was debunked largely through the real findings of intrepid investigations by advocates and professional reporters, which some commentatorshave highlighted amid the media fallout. As part of its “Retraction” episode, in fact, TAL interviewed New York Times reporter Charles Duhigg about the real story behind Daisey’s fictions.

On the reported widespread violations of a 60-hour weekly cap on working hours, Duhigg tells host Ira Glass, Apple claims workers volunteer for this excess work:

Duhigg: They say, “Look, one of the reasons why there is so much overtime that’s inappropriate and, in some places, is illegal, is because the workers themselves are demanding that overtime.”

Now, workers don’t always say that. What workers often say is that they feel coerced into doing overtime, that if they didn’t do overtime when it’s asked of them, that they wouldn’t get any overtime at all, and that financially they would suffer as a result.

This is the kind of more nuanced, day-to-day exploitation that Foxconn workers face–not so sensational, but nonetheless driven by global economic forces.

Li Qiang, head of the New York-based China Labor Watch, told In These Times that in terms of the situations Daisey described, basically, “What he said about working conditions is true.” He added, “Through this kind of media reporting, maybe more artists or journalists, or others will go to China to investigate the real circumstances in Chinese factories….  This way, this issue can generate more public debate.”

While Apple has touted a new partnership with the third-party monitoring organization Fair Labor Association, many critics remain wary that Apple will continue to fail the workers at the dregs of the supply chain. Even worse, Apple might turn the scandal into a marketing opportunity, polishing its reputation with a dab of “corporate social responsibility” measures.

Make IT Fair recently denounced the FLA partnership as “a mere PR stunt,” citing comments by FLA president Auret van Heerden praising Apple facilities as “way, way above the average of the norm.”  Activists call on Apple and other industry leaders to adopt more stringent ethical codes, which protect the environment from damaging extraction of raw materials, honor collective bargaining rights, and protect workers and their communities from discrimination and rights abuses.

Apple’s real attitude toward its workers has been far from charitable. In a statement responding to TAL‘s retraction, SACOM (whose campaigns have informed both Daisey’s and TAL‘s reporting) pointed to the ongoing ramificiations of an incident that inspired Daisey’s narrative—a mass poisoning at a facility where workers were exposed to the chemical n-hexane while polishing gleaming touchscreens:

In contrast to Apple’s statement that they have all been treated successfully, many workers still suffer from weak limbs and other health problems after nine-month hospitalizations. The victims sent three letters to Apple last year, but the company did not answer them at all. Likewise, after the explosion at the iPad case manufacturer Riteng in Shanghai in last December, which injured 59 workers, Apple has not sent anyone to visit the victims. The young workers are in despair because their faces were disfigured due to the fire from the blast. Some of them suffer from bones so severely shattered that they may be permanently disabled. Three months have passed, but the victims have not received any compensation….

While Apple hypocritically expressed that the company was deeply saddened by the tragedy, it has never apologized or offered compensation to the workers for its negligence in complying with work safety rules.

For all his professed empathy for Foxconn workers, Daisey’s exaggerations were stupefyingly self-serving. Even as he awkwardly attempted to express contrition in the follow-up dialogue with Ira Glass, he insisted that within the realm of theater, he had legitimately blended fiction and nonfiction to create a more emotive experience for a Western audience.

The claim reveals that Daisey lied to elevate his role in the story. He basically decided that the ugly truth wasn’t quite dramatic enough for him—a sideways insult to the workers whose cause he claimed to champion.

In a correspondence with In These Times, SACOM project officer Chan Sze Wan said, “we worry that the public will misunderstand [and think] Foxconn is innocent after the Mike Daisey’s case.” As a research-based group, she added, SACOM “will continue to provide accurate information to consumers to solicit their supports,” but ultimately, voices of workers themselves will need to be heard:

Nowadays, Foxconn workers do not have real worker representative system in the factory. So, SACOM has to channel their grievances to Apple. However, we always emphasize that workers should be the ones to monitor the working conditions at their workplace and fight for the rights.

Following the string of suicides, a quote from a Chinese blog captured the workers’ story more eloquently than an American performer ever could:

Perhaps for the Foxconn employees and employees like us
– we who are called nongmingong, rural migrant workers, in China –
the use of death is simply to testify that we were ever alive at all,
and that while we lived, we had only despair.

In the context of that hushed plea, the media hooplah over the fudged Foxconn narrative simply distracts us from the real masterwork of fiction that Apple and other tech giants continue to peddle: the imaginary world of our gadgets, a cosmopolitan universe that pretends to connect everyone while in fact sharpening the lines between consumers and the invisible workers that enable that carefree lifestyle. And we’re all buying it.

This blog originally appeared in Working in These Times on March 21, 2012. Reprinted with permission.

About the Author: Michelle Chen is a contributing editor at In These Times. She is a regular contributor to the labor rights blog Working In These TimesColorlines.com, and Pacifica’s WBAI. Her work has also appeared in The Nation, Alternet, Ms. Magazine, Newsday, and her old zine, cain. Follow her on Twitter at @meeshellchen or reach her at [email protected]

Apple’s Overseas Jobs, The Tech Industry, And The American Economy

Monday, January 23rd, 2012

Alyssa RosenbergOne of the big dynamics in the debate over SOPA and PIPA is who’s getting money from whom. The entertainment industry’s currently spending a great deal more on lobbying than the tech community is; MPAA Chairman Chris Dodd has threatened to turn off Hollywood campaign contributions to Democrats if SOPA or a form of it doesn’t pass; and both Democrats and Republicans are attempting to position themselves for the future. What a big, and usefully clear, New York Times story about Apple’s decision to move much of its work overseas makes clear, though, is while the tech industry may eventually have more to offer in terms of lobbying cash and campaign contributions, it may not have much to offer Democrats in terms of creating critically important American manufacturing jobs. In a conversation between Steve Jobs and President Obama before the former’s death, the Times reported that this exchange took place about the Apple jobs that have moved overseas:

Why can’t that work come home? Mr. Obama asked.

Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest.

The president’s question touched upon a central conviction at Apple. It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.

It’s absolutely true that there would have to be radical changes in the American economy to retrain workers, to move huge parts of the supply chain back to the United States, and perhaps most difficult, to get American workers to expect a vastly different standard of living or to get Apple executives to accept slower development times and more expensive production costs. I’d argue that American workers have already made substantial compromises on the former proposition. But I don’t foresee a future where companies are going to move toward the latter out of the goodness of their own hearts. There’s no question that companies have a right to maximize profits, and that if they don’t care how they’re perceived or about creating a sense of moral obligation to buy their products, they have every right to produce their products wherever and under whatever conditions they can get away with. But if they’re going to take that approach, I sort of wish they’d be as blunt about it as possible, so we don’t risk mistaking shiny toys for some sort of greater good.

This blog originally appeared in ThinkProgress on January 23, 2012. Reprinted with permission.

About the Author: Alyssa Rosenberg is a culture reporter for ThinkProgress.org. She is a correspondent for TheAtlantic.com and The Loop 21. Alyssa grew up in Massachusetts and holds a B.A. in humanities from Yale University. Before joining ThinkProgress, she was editor of Washingtonian.com and a staff correspondent at Government Executive. Her work has appeared in Esquire.com, The Daily, The American ProspectThe New RepublicNational Journal, and The Daily Beast.

Obama's Jobs Plan Leaves Out Manufacturing

Thursday, September 15th, 2011

akito_yoshikaneProductivity is up, so where are the jobs?

When President Obama announced his jobs plan last week, he proclaimed that more goods should be produced domestically to help bolster the struggling manufacturing sector.

“If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. I want to see more products sold around the world stamped with three proud words: ‘Made in America,’ ” he said.

The declaration, which was prefaced earlier by his support for new free trade agreements, drew applause from members of Congress. But some experts are saying the U.S. has not established a clear plan on how to revive the manufacturing industry beyond outlining broad goals, adding that politicians have not paid enough attention to the decline.

Manufacturing is projected to have the highest productivity rate across all sectors by 2018, but jobs are not expected to grow, a new study has found. With companies already eliminating jobs or moving them overseas, that hurts areas like the Midwest, where manufacturing jobs have been disappearing. According to a new report by Georgetown University’s Center on Education and the Workforce, the industrial heartland was hardest hit by the economic crisis. More than 610,000 manufacturing jobs have been eliminated since 2007, representing nearly one-third of the sector’s national job losses during the recession.

With an emphasis on more service-oriented labor, many of these jobs that provided decent pay with few skills are gone for good, the report said. Two million jobs will be added by 2018, but only because workers are retiring. Many of the Midwestern states have shifted toward other industries like healthcare and education. That shift is projected to create demand for higher skilled workers with college degrees, creating a gap for middle-income earners hoping to find mid-skilled work.

And overall, the manufacturing industry has contributed a smaller share to the country’s gross domestic product. More than 60 years ago, the industry accounted for 28 percent of the U.S. economy. Today, it has fallen to 11.7 percent, indicating that the jobs are disappearing. In the Midwest, the manufacturing sector has fallen from 39 percent of jobs during the 1960s to 12 percent today, only slightly higher than the national average of 9 percent.

Yet even though the GDP has fallen, companies are still relying on manufacturing employees to work harder. In 2010, worker productivity was three times higher than it was in 1970, with each employee, on average, now producing $300,000. But jobs are not expected to grow in the future despite higher output. The report writes:

Our projections show that manufacturing output will grow from roughly $4.0 trillion in 2008 to $4.9 trillion in 2018, ranking it as America’s largest industry when measured by contributions to national output. But that will not translate to job growth. In fact, even as manufacturing’s output explodes over the next decade, its workforce will contract.

Even though many Americans are working harder than in the past, many multinational companies have shifted much of their production abroad. During the last decade, corporations have cut 2.9 million domestic jobs but added 2.4 million abroad. Those companies include General Electric, headed by chief executive Jeffrey Immelt, who heads Obama’s Job Council.

The Center for American Progress explains why it’s important to keep operation and manufacturing jobs in the domestic sphere:

When the basic manufacturing leaves, the feedback loop from the manufacturing floor to the rest of a manufacturing operation—a critical element in the innovative process—is eventually broken. To maintain that feedback loop, companies need to move higher-skill jobs to where they do their manufacturing.

And with those jobs goes American leadership in technology and innovation. This is why having a critical mass of both manufacturing and associated service jobs in the United States matters. The “industrial commons” that comes from the cross-fertilization and engagement of a community of experts in industry, academia, and government is vital to our nation’s economic competitiveness.

The Obama administration has instituted some initiatives. In June, the president announced a $500 million plan to spur jobs and technological innovation as part of a manufacturing partnership with businesses, universities and government. As he said in his speech, some skills training are also offered at community colleges.

The specific plan, however, does not appear concrete. An MIT economist told the New York Times that the U.S. is the only industrial power without a “strategy or even a procedure for thinking through what must be done when it comes to manufacturing.” Others point to the ostensible decline and shift toward financial and real estate sectors as a reason why politicians aren’t paying attention.

The old days of manufacturing may be long gone, but this is an industry that is slated to soon have higher productivity output than any other in the country; it’s also an industry whose decline can further widen the middle class gulf unless adequate education and training programs are put in place. Tax cuts and new spending are a large part of Obama’s jobs plan, but the consequences of neglecting the manufacturing sector is hard to ignore.

This blog originally appeared in Working in These Times on September 14, 2011. Reprinted with permission.

About the Author: Akito Yoshikane is a freelance writer and reporter for Kyodo News. He regularly contributes to the In These Times blog covering labor and workplace issues. He lives in New York City.


What Do Packers and Steelers Have in Common?

Friday, February 4th, 2011

Image: James ParksWhat do the Green Bay Packers and the Pittsburgh Steelers have in common–besides playing in the Super Bowl Sunday? Both teams are named after the major manufacturing industry in their towns. Both cities were built on manufacturing and enjoy a loyal following built on the middle-class, blue-collar jobs supported by these industries. The Packers’ middle-class fans are also the team’s owners–the only team not owned by a super-rich person.

This is not the first Super Bowl with both teams hailing from proud working class communities.  The Alliance for American Manufacturing (AAM) has launched the first-ever Super Bowl Manufacturing Index, which shows how many people were employed in manufacturing at the time of each working class Super Bowl. The index shows that in 1967 when the Packers beat the Kansas City Chiefs, there were 17.9 million manufacturing jobs. This Sunday, there are only 11.7 million.

The players know the importance of manufacturing to their fans. At a recent AAM town hall meeting in Green Bay, Packer players A.J. Hawk and Mason Crosby spoke out about the value of manufacturing jobs (see video).

Scott Paul, AAM’s executive director, says:

As we celebrate this year’s Super Bowl, let’s not forget the men and women who have made these team great–their blue-collar fan base.  We can keep these communities strong by supporting a strong American manufacturing base and its highly skilled workers.

*This post originally appeared in AFL-CIO blog on February 4, 2011. Reprinted with permission.

About the Author: James Parks – My first encounter with unions was at Gannett’s newspaper in Cincinnati when my colleagues in the newsroom tried to organize a unit of The Newspaper Guild. I saw firsthand how companies pull out all the stops to prevent workers from forming a union. I am a journalist by trade, and I worked for newspapers in five different states before joining the AFL-CIO staff in 1990. I also have been a seminary student, drug counselor, community organizer, event planner, adjunct college professor and county bureaucrat. My proudest career moment, though, was when I served, along with other union members and staff, as an official observer for South Africa’s first multiracial elections.

On Labor Day, Work to Save the Middle Class

Wednesday, September 8th, 2010

Leo GerardThis Labor Day feels gloomy. It’s a celebration of work when there is not enough of it, a day off when too many desperately seek a day on.

America has commemorated two Labor Days since this brutal recession began near the end of George Bush’s presidency in December of 2007. Now the relentless high unemployment, the ever-rising foreclosures, the unremitting wage and benefit take-backs have replaced American optimism and enthusiasm with fear and anger.

Happy Labor Day.

On this holiday, we can rant with Glenn Beck, kick the dog and hate the neighbor lucky enough to retain his job. Or we can do something different. We can join with our neighbors, employed and unemployed, our foreclosed-on children, our elderly parents fearing cuts in their Social Security lifeline and our fellow workers worrying that the furlough ax will strike them next. Together we can organize and mobilize and create a grassroots groundswell that gives government no choice but to respond to our needs, the needs of working people.

We can do what workers did during the Great Depression to provoke change, to create programs like Social Security and achieve recognition of rights like collective bargaining. These changes were sought by groups to benefit groups. In a civil society, people care for one another. And America is such a society – one where people routinely donate blood to aid anonymous strangers, children set up lemonade stands to contribute to Katrina victims and working families find a few bucks for United Way.

The self-righteous Right is all about individuals pulling themselves up by their bootstraps. That proposition – the do-it-all- by-yourself-winner-takes-all philosophy – clearly failed because so many Americans are jobless, homeless and too penniless to afford boots.

Over the past decade, the winner who took all was Wall Street. The banksters gambled on derivatives and other risky financial tomfoolery and won big time. Until they lost. And crashed the economy. After the American taxpayer bailed them out, those wealthy traders returned to making huge profits and bonuses based on perilous schemes.

Still, they believe they haven’t taken enough from working Americans. They’re lobbying to end aid for those who remain unemployed in a recession caused by Wall Street recklessness. And they’re demanding extension of their Bush-given tax breaks. This is the nation’s upper 1 percent, people who earn a million or more each year, the 1 percent that took home 56 percent of all income growth between 1989 and 2007, the year the recession began.

Since 2007, 8.2 million workers have lost jobs. Millions more are underemployed, laboring part-time when they need full-time jobs, or barely squeaking by on slashed wages and benefits. Since the recession began, the unemployment rate nearly doubled, from 5 percent to 9.6 percent, and that does not include those so discouraged that they’ve given up the search for jobs, a decision that is, frankly, understandable when there are only enough openings to re-employ 20 percent of the jobless. Five unemployed workers compete for each job created in this sluggish economy.

And American workers weren’t prepared for this downturn, having already suffered losses in the years before it began. The median income, adjusted for inflation, of working-age households declined by more than $2,000 in the seven years before the recession started.

At the same time, practices like off-shoring jobs and signing regressive international trade deals contributed to the loss of middle class, blue collar jobs. A new report, “The Polarization of Job Opportunities in the U.S. Labor Market,” by the Center for American Progress and The Hamilton Project, says:

“The decline in middle-skill jobs has been detrimental to the earnings and labor force participation rates of workers without a four-year college education, and differentially so for males, who are increasingly concentrated in low-paying service occupations.”

The recession compounded that, the report says:

“Employment losses during the recession have been far more severe in middle-skilled white- and blue-collar jobs than in either high-skill, white-collar jobs or low-skill service occupations.”

What that means is high roller banksters are living large; lawn care workers and waitresses subsist on minimum wage, and working class machinists and steelworkers are disappearing altogether.

The researchers found the U.S. economy is increasingly polarized into high-skill, high-wage jobs and low-skill, low wage jobs. America is losing the middle jobs and with them its great middle class.

No wonder the rising anger in middle America.

But fury doesn’t solve the problem. This Labor Day, we must organize to save ourselves and our neighbors. We must stop America from descending into plutocracy. We must demand support for American manufacturing and middle class jobs. That means terminating tax breaks for corporate outsourcers, ending trade practices that violate agreements and international law and punishing predator countries for currency manipulation that subverts fair trade by artificially lowering the price of products shipped into the U.S. while artificially raising the price of American exports.

We must demand support for American industry, particularly manufacturers of renewable energy sources like solar cells and wind turbines that create good working class jobs, increase America’s energy independence and reduce climate change.

We must insist on policies that support the middle class, including preserving Social Security and Medicare, extending unemployment insurance while joblessness remains high, and enforcing the health care reform law so that every American worker and family can afford and is covered by insurance.

On this Labor Day, we should all have a picnic, invite neighbors, friends and family, and over hot dogs and potato salad, organize to save the American middle class.

Mobilize to end the gloom and restore American optimism.

***

For help: the Union of the Unemployed, the AFL-CIO, USW, Working America. Join the One Nation March for jobs Oct. 2 in Washington, D.C.

About The Author: Leo Gerard is the United Steelworkers International President. Under his leadership, the USW joined with Unite -the biggest union in the UK and Republic of Ireland – to create Workers Uniting, the first global union. He has also helped pass legislation, including the landmark Canadian Westray Bill, making corporations criminally liable when they kill or seriously injure their employees or members of the public.

What’s Green, White and Blue? American Jobs

Tuesday, August 10th, 2010

Leo GerardRed, as in furiously red, defined the day last fall when a consortium of companies announced it wanted $450 million in U.S. stimulus money to build a wind farm in Texas, creating 2,000 jobs in China and 300 in America.

Now, nine months later, things have cooled down and turned around. In a deal with the United Steelworkers (USW), two Chinese companies have agreed to build as much of the wind turbines as possible in America, using American-made steel, and creating perhaps 1,000 American jobs.

The deal is a result of white collar Chinese executives negotiating with blue collar union officers to create green collar jobs in the U.S. The agreement defies stereotypes about unions as constantly combative, excessively expensive and environmentally challenged. The USW has a track record of engaging with enlightened CEOs for mutual benefit.  It has a long green history. And it has worked to return off-shored jobs to the U.S.

The USW, like the Democrats in the House and Senate with their Make It in America program, is devoted to preserving and creating family-supporting, prosperity-generating manufacturing jobs in America. And if they’re green, all the better.

Billionaire investor Wilbur Ross has first-hand experience negotiating with unions, including the USW, to sustain U.S. manufacturing. He describes it positively. Here he is on PBS’ Charlie Rose on Aug. 2:

“I have found the leaders of big industrial unions, the steelworkers, the auto workers, they understand dynamics of industry at least as well as the senior management of the companies.”

Ross talked to Rose about dealing with the USW during the time when he was buying  LTV Steel:

“We worked out a contract that took 32 job classifications down to five, changed work rules to make it more flexible and most important of all, we put in a blue collar bonus system. . .We became the most efficient steel company in America. We were making steel with less than one man hour per ton. The Chinese at the time were using six man hours per ton. We were actually exporting some steel to China.”

Ross accomplished that while paying among the highest wages for manufacturing workers in America.

The USW approached the Chinese companies that planned the $1.5 billion Texas wind farm, A-Power Energy Generation Systems Ltd. and Shenyang Power Group, the same way it did Ross. The meetings occurred with the help of U.S. Renewable Energy Group, a private equity firm that facilitates international financing and investment in renewable energy projects. Jinxiang Lu, chairman and chief executive of Shenyang Power, said talking to the union enabled him to see its “vision for win-win relationships between manufacturers and workers.”

For the USW, this deal means the Chinese firms will initially buy approximately 50,000 tons of steel manufactured in unionized American mills to fabricate towers and rebar for the 615 megawatt wind farm in Texas, will employ Americans at a wind turbine assembly plant to be built in Nevada, and will employ more American workers in green jobs at plants constructing the blades, towers and thousands of other wind turbine parts.

For the Chinese companies, the USW, the largest manufacturing union in America, will use its long list of industry contacts to help construct an American supply chain essential to amass the approximately 8,000 components in a wind turbine. The idea is to collaboratively create a solid manufacturing, assembly, component sourcing, and distribution system so that this team – the Chinese companies, U.S. Renewable Energy Group and the USW — will build many more wind farms after the first in Texas.

Additional wind farms mean more renewable energy freeing the U.S. from reliance on foreign oil. As U.S. Sen. Sherrod Brown, D-Ohio, says, there’s no point in replacing imported foreign oil with imported wind turbines. For energy and economic independence, green manufacturing capacity and green jobs must be in the U.S.

This deal does that. And there’s nothing unusual about foreign companies employing Americans. Many Americans, including USW members, already work in factories owned by many different foreign national companies, including German, Russian, Japanese, Mexican, and Brazilian, with names like Bridgestone-Firestone, Arcelor-Mittal, Rio Tinto, Grupo Mexico, Svenska Cellulosa AB (SCA) and Severstal.

In at least one other case, action by the USW forced the hand of a Chinese company to move jobs to the U.S. Tianjin Pipe, the world’s largest manufacturer of steel pipe, said it could not export profitably to the United States if tariffs rose above 20 percent. This was after the USW and seven steel manufacturers filed a petition with U.S. trade agencies in April of 2009 accusing China of illegally dumping and subsidizing the type of pipe used in the oil and gas industry. The union won that case this past April, and the U.S. Commerce Department imposed import duties ranging from 30 to 100 percent to give the domestic industry relief from the unfair trade practices. To continue selling in the U.S., Tianjin Pipe had no choice but to build an American pipe mill. Construction is expected to begin in Texas this fall on the $1 billion plant to employ 600 by 2010.

Although the USW is cooperating with A-Power and Shenyang Power, it will not back off its trade cases involving exported Chinese steel, pipe, tires, paper and other manufactured products. The stakes for U.S. jobs are just too high.

Back in 1990, when green was not as trendy, the USW recognized that the environment would be among the most important issues of the era and issued the report, “Our Children’s World.”  Since then, it has steadily promoted green — became a founding member of the BlueGreen Alliance and Apollo Alliance, which promote renewable energy and renewable energy jobs.

Good, green American manufacturing jobs. Establishing American energy independence. It is win-win. And it’s getting a green light now.

About The Author: Leo Gerard is the United Steelworkers International President. Under his leadership, the USW joined with Unite -the biggest union in the UK and Republic of Ireland – to create Workers Uniting, the first global union. He has also helped pass legislation, including the landmark Canadian Westray Bill, making corporations criminally liable when they kill or seriously injure their employees or members of the public.

For the Strength of Rosie the Riveter: Make It in America

Tuesday, August 3rd, 2010

Leo GerardRosie the Riveter defiantly rolls up her blue work shirt to show off a brawny bicep. She’s a symbol of American strength.

She worked in a manufacturing job, one of millions that constructed the defense machine that won World War II for the Allies. She said, “We can do it.” And America did.

Now, however, shuttered U.S. factories and off-shored manufacturing are sapping American strength. The nation has lost more than 40,000 manufacturing plants and one-third of its manufacturing jobs, nearly six million, over the past dozen years. China is on the verge of overtaking the U.S. in manufacturing output. And Americans know it. Late in April, 58 percent of 1,000 likely voters told pollsters they believed America’s economy no longer led the world.

They also told pollsters they supported enacting a national manufacturing policy to promote resurgence of domestic production — a return to the days of a robust Rosie the Riveter and a country that could secure its independence with dynamic manufacturing capability.

Democrats in Congress heard that message. They’ve created a program called “Make It in America.” They plan to pass a series of bills to create an environment in which both Americans and American manufacturers make it. “We want everybody to make it in America,” House Speaker Nancy Pelosi said as she described the plan to 2,000 bloggers and progressive activists at Netroots Nation 2010 last week in Las Vegas.

After all the support America has given the financial sector – estimated to total more than $4 trillion – it’s time for Congress to invest in the productive sector, the one that creates jobs, real wealth and American power.

“We must stop the erosion of our manufacturing base, our industrial base, our technological base,” the Speaker told Netroots Nation, “It is a national security issue to do so, if we had no other justification,” she said, adding that there are, of course, plenty of other reasons.

She said the strategy is to pass “one bill after another” supporting American manufacturing. The House started last week with two, one to ease American industries’ access to raw materials and parts and another to improve specialized workforce training.

In addition, Speaker Pelosi said, House leaders want to address currency manipulation – the deliberate undervaluing of currency to make a country’s exports artificially cheap and imports into that country artificially expensive. Currency manipulation by China, for example, is believed by both conservative and liberal economists to be adding as much as 40 cents to every dollar of the cost of U.S. products exported to China and discounting Chinese goods sold in the U.S. by 40 cents on every dollar.

“There is a strong interest in our caucus in holding China accountable for manipulation of currency. That would make a tremendous difference in our trade because currency manipulation is really a subsidy to their exports to America – an unfair advantage,” the Speaker said at Netroots Nation.

Other bills Speaker Pelosi hopes to pass soon include $5 billion in tax credits for domestic manufacturers that produce components for alternative energy and a requirement that foreign manufacturers keep at least one worker stationed in the U.S. so the company can be officially served with court papers. Also, there’s a bill by Illinois Congressman Daniel Lipinski that would require each U.S. president to produce a manufacturing strategy in the second year of office and to review progress annually.

The survey that prompted Democrats to create the “Make It in America” program was commissioned by the Alliance for American Manufacturing (AAM) and conducted by Democratic pollster Mark Mellman and Republican pollster Whit Ayres. They found that likely voters believed creating manufacturing jobs was more important than reducing the federal deficit and more important than cutting government spending.

The survey also showed strong support for policies requiring the government to buy American-made goods. Similarly, it showed the Democrats, Independents and Republicans surveyed felt the quality of products manufactured in American exceeded those made in China, Japan, India and Germany.

Americans now even prefer U.S.-made cars: An Associated Press-GfK Poll in April showed 38 percent of Americans favor U.S. vehicles. Asian brands got 33 percent.

Chrysler takes advantage of that sentiment in its commercial for the new Grand Cherokee. The words are chilling:

“The things that make us American are the things we make,” it begins.

“This has always been a nation of builders, craftsmen, men and women for whom straight stitches and clean welds were matters of personal pride. They made the skyscrapers and the cotton gins, colt revolvers, Jeep 4-by-4s,” the ad continues.

“These things make us who we are,” the narrator says. Yes. The things Americans make, make the country strong.

To the sound of a sledge hammer pounding a railroad spike, the narrator goes on to describe the reborn Grand Cherokee, “This, our newest son, was imagined, drawn, craved, stamped, hewn and forged here, in America. It is well-made and it is designed to work. This was once a country that made things, beautiful things, and so it is again.”

Well, not quite. Chrysler may make a terrific Grand Cherokee in Michigan. But American manufacturing needs some help. And with unemployment stuck at 9.5 percent, so do the American people. “Make it in America” is that aid. The AAM poll showed 85 percent of those who said the U.S. had lost economic leadership believed America could regain it.

Americans believe we can still do it.

***

Make sure Congress acts. Join the One Nation Working Together march on Washington Oct. 2 to demand good jobs, as well as Wall Street and immigration reform.

About The Author: Leo Gerard is the United Steelworkers International President. Under his leadership, the USW joined with Unite -the biggest union in the UK and Republic of Ireland – to create Workers Uniting, the first global union. He has also helped pass legislation, including the landmark Canadian Westray Bill, making corporations criminally liable when they kill or seriously injure their employees or members of the public.

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