Posts Tagged ‘United Steelworkers’
Thursday, March 29th, 2012
The United Steelworkers (USW), the Spanish worker cooperative Mondragon—the world’s largest worker cooperative—and the Ohio Employee Ownership Center (OEOC) this week unveiled what they describe as a “template that combines worker equity with a progressive collective bargaining process.”
USW President Leo Gerard says that “to survive the boom and bust, bubble-driven economic cycles fueled by Wall Street, we must look for new ways to create and sustain good jobs on Main Street.”
This union co-op model…provides a viable road map on how we might begin fielding these sustainable jobs. Worker-ownership can provide the opportunity to figure out collective alternatives to layoffs, bankruptcies and closings in hard times, rather than having the rug pulled right out from under struggling communities to the benefit of a few at the expense of the many.
A key part of the co-op’s mission is to support and invest in communities, by creating jobs, funding development projects, supporting education and providing opportunity.
“Sustainable Jobs, Sustainable Communities: The Union Co-Op Model” is a “public domain” template available to any organization at www.union.coop. It offers a primer for competitive and equitable employment creation based on 55 years of Mondragon principles put into marketplace practice.
In 2011, Mondragon reached annual sales of more than $24 billion with its own cooperative university, cooperative bank and cooperative social security mutual and is ranked as the top Basque business group, the seventh largest in Spain and the world’s largest industrial workers’ cooperative.
Gerard says the goal is creating an economy that can work for everyone who works, and that:
Creating sustainable jobs and sustainable communities require broadening the definition of societal value beyond “the bottom line” and moving to a more stakeholder-centric economy. Democratic worker ownership principles combined with social and economic justice differentiate the union co-op model from traditional business models, making the union co-op option sustainable and giving it a competitive edge over the long term as worker-owners get to benefit more fully from their hard work and own their own decision-making process and all the fruits of their labors.
The co-op principle, he says, will result in improved, self-reinforcing, worker and customer satisfaction through higher accountability, productivity and efficiency because all workers will have an equal equity stake in the company, share common goals and adhere to common principles and practices that broaden the definition of value beyond the bottom line.
Several co-op projects are under way and in the planning stages. Click here for information from the USW.
This blog originally appeared in AFL-CIO Now on March 29, 2012. Reprinted with permission.
About the Author: Mike Hall “I’m a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. I came to the AFL- CIO in 1989 and have written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety. When my collar was still blue, I carried union cards from the Oil, Chemical and Atomic Workers, American Flint Glass Workers and Teamsters for jobs in a chemical plant, a mining equipment manufacturing plant and a warehouse. I’ve also worked as roadie for a small-time country-rock band, sold my blood plasma and played an occasional game of poker to help pay the rent. You may have seen me at one of several hundred Grateful Dead shows. I was the one with longhair and the tie-dye. Still have the shirts, lost the hair.”
Tags: Co-op Model, labor, Main Street, Mike Hall, Mondragon, Ohio Employee Ownership Center, United Steelworkers Posted in Uncategorized | 1 Comment »
Tuesday, July 19th, 2011
United Steelworkers and Mexico’s Los Mineros union could develop a unification proposal as soon as this August
In Mexico, few independent union exist that are not effectively controlled by the Mexican government. According to United Steelworkers International Affairs Director Ben Davis, fewer than 1 percent of Mexico’s unions are truly independent unions. As a result of the lack of independent unions in Mexico, Mexican workers have had a very hard time advocating for higher wages. Further, those unions that are independent in Mexico—like the National Union of Mine, Metal, Steel and Related Workers of the Mexican Republic, aka Los Mineros—have faced severe oppression at the hands of government-affiliated unions.
In 2006, Los Mineros President Napoleon Gomez Urrutia was forced to flee to Canada after the Mexican government charged him with what union officials characterize as trumped-up charges of embezzlement. A federal Mexican court has dismissed the charges against Gomez Urrutia, but the charges against him remain pending at the state level. Supporters of the exiled labor leader says that he was only charged with crimes after he demanded an investigation of 2006 mine explosion that killed 65 workers at the Pasta de Conchos. Gomez Urrutia has been running the 180,000-member Los Mineros union out of the Steelworkers’ District 3 offices in Burnaby, British Columbia.
Despite the charges against Gomez Urrutia and his forced exile, his continued relevance was demonstrated late last week when officials for the Mexican operations of steel corporation ArcelorMittal traveled to Toronto to negotiate with the exiled Mexican labor leader. The trip was made possible in part through the assistance of the United Steelworkers (USW), who may merge with Los Mineros later this year.
Last month, In These Times Contributing Editor Kari Lydersen profiled how the unique cross-border solidarity emerged between USW and Los Mineros. In 2005, steelworkers went out on strike at an Asarco owned copper mining and smelting mill in Arizona in 2005. Many Mineros members who work at the Grupo Mexico company, which owns Asarco, went out on strike and performed other solidarity actions in support of striking miners in Arizona.
As a result of that strike, a solidarity agreement was formed between those two unions in 2005. In 2010, USW and Los Mineros formed a joint commission to look at merging their two unions. According to United Steelworkers Public Affairs Director Gary Hubbard, the joint commission is working toward a unification proposal for discussion at the Steelworkers’ convention in August in Las Vegas.
As Kari Lydersen noted, “If the merger occurs, the new USW-Mineros union would represent more than 1 million workers—the USW has 850,000 members, while the Mineros has 180,000.”
If the USW/Los Mineros merger passes, as many expect it will, it would be the first between a Mexican-based union, an American affiliate of a union and a Canadian affiliate of a union—marking a new phase of cross-border solidarity. The merger has the potential to reshape labor markets in both countries.
“We are directly affected everyday by the low-wage competition from Mexico. The reason that competition is low-wage is because Mexican government keeps wages low by busting unions,” says USW International Affairs Director Ben Davis. “It’s a matter of survival for us to have democratic unions that support workers’ rights and raise wages. It’s really about closing the gap the right way by bringing Mexican wages up, not our wages down, through strengthening alliances between workers who quite often have the same employers.”
Correction: The original version of this article stated that members of both USW and Los Mineros would vote on a unification proposal if it were part of USW’s August convention. In fact, only USW members can vote on proposals presented at the convention.
This article originally appeared on the Working In These Times blog on July 15, 2011. Reprinted with permission.
About the Author: Mike Elk is a third-generation union organizer who has worked for the United Electrical, Radio, and Machine Workers, the Campaign for America’s Future, and the Obama-Biden campaign. Based in Washington D.C., he has appeared as a commentator on CNN, Fox News, and NPR, and writes frequently for In These Times as well as Alternet, The Nation, The Atlantic and The American Prospect.
Tags: Mexico, NAFTA, unions, United Steelworkers Posted in unions | No Comments »
Wednesday, February 2nd, 2011
Not the wars. Not greenhouse gasses. Not even the deficit. The issue most important to Americans is jobs.
Despite that, jobs failed to make an appearance in the State of the Union address.
The talk was all about business. Business was doing better. Business needed taxpayers to help pay for research and innovation. Business will get government help to eliminate pesky regulations. Business must have lower taxes.
The most telling statement was this:
“We have to make America the best place on Earth to do business.”
Especially because it wasn’t matched by a companion:
“We have to make America the best place on Earth to work.”
The speech expressed a policy in which business is the focus of government, taking precedence over workers. The American colonists created a government for their own benefit; they did not constitute an agent to serve business. A policy giving corporations primacy is risky for American workers.
The state of the union noted that happy days are here again for corporations and banks:
“Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.”
Never mentioned, however, were the 14.5 million unemployed Americans, the sustained record rate of foreclosure, and the increasing poverty and food bank reliance among citizens of the richest nation in the world.
The state of the union outlined a plan under which the government will coddle corporations, essentially proving companies government welfare using American workers’ tax dollars. If businesses create jobs for workers as a result, fine. If they don’t, there’s no plan to exact a penalty.
For example, under the policy described in the speech, American workers will fork over tax dollars to pay for research and development for businesses that are sitting on a record $1.8 trillion in cash reserves — hoarding it rather than creating jobs.
The president said:
“Two years ago, I said that we needed to reach a level of research and development we haven’t seen since the height of the Space Race. And in a few weeks, I will be sending a budget to Congress that helps us meet that goal. We’ll invest in biomedical research, information technology, and especially clean energy technology — an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.”
Maybe it will create new jobs. Hopefully. But no guarantees were offered. Mentioned as a business success story in the speech was a Michigan company, Luma Resources, which began manufacturing solar shingles with the help of a $500,000 government grant. It created 20 jobs, $25,000 a job. American taxpayers might think that’s a little pricey, but what’s worse is the potential for Luma Resources to go the way of Evergreen Solar, squandering the corporate welfare.
Evergreen, the third largest maker of solar panels in the U.S. and recipient of at least $43 million in corporate welfare, announced earlier this month it would close its main American factory in Massachusetts and move manufacturing to China. Eight hundred Americans will lose their Evergreen jobs by April.
Evergreen officials said China will give the company even higher amounts of corporate welfare, which, of course, makes sense since China is not a capitalist country. Its economy is government controlled. And that government routinely violates international trade regulations – by providing banned subsidies to industries and by deliberately devaluing its currency.
No matter how better educated American workers get. No matter how much more innovative. No matter how much more productive. No matter how many tax dollars the government spends on research and development, if the corporations that benefit move manufacturing overseas, the American workers who paid for it will suffer.
In fact, it’s more than suffering; it’s betrayal by their government that provided tax benefits to companies for off-shoring jobs. It is betrayal by their government that fails to stop violations of trade laws by countries like China that lure away firms like Evergreen.
At the end of the State of the Union speech, the president said:
“From the earliest days of our founding, America has been the story of ordinary people who dare to dream.”
An ordinary American dreams of a family-supporting job, owning a home, saving enough to pay for a child’s college education, helping to build a safe community. Corporations aren’t Americans, no matter how often the U.S. Supreme Court grants them rights that the U.S. Constitution guarantees to human beings. Businesses aren’t citizens. Their allegiance isn’t to America. It’s to profits. They dream only of dollars. They concede no responsibility to family, community or country.
They were not included when the president said:
“Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater — something more consequential than party or political preference. We are part of the American family.”
The top priority of the American government must be making America the best place on Earth for Americans. If that’s good for corporations, great. The government must never place American citizens second.
*This post originally appeared in United Steelworker’s Blog on January 31, 2010.
About the Author: Leo W. Gerard is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama recently appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of the Apollo Alliance, Campaign for America’s Future and the Economic Policy Institute. He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union.
Tags: innovation, Jobs, Leo Gerard, President Obama, State of the Union, unemployment, United Steelworkers Posted in Jobs | 1 Comment »
Wednesday, December 15th, 2010
A World Trade Organization (WTO) panel’s ruling in favor of U.S. tariffs on passenger and light truck tires made in China shows “the rules of trade, when vigorously enforced, can be made to work for working people,” United Steelworkers (USW) President Leo Gerard said.
In September 2009, President Obama became the first president to enforce U.S. trade law when he imposed tariffs to protect domestic workers against a surge in tire imports from China. The original complaint came from the USW, and Obama’s decision led to a rebound in the tire industry.
China appealed the decision to the WTO and the ruling was announced yesterday. Gerard applauded the Obama administration for “standing up and defending American jobs in its original decision to impose relief and in its strong defense of that action at the WTO.”
Fair trade law enforcement should be the standard of our government in requiring China to fulfill its obligations under its accession agreement with the WTO more than a decade ago.
“This is a major victory for the United States and particularly for American workers and businesses,” U.S. Trade Rep. Ron Kirk said in a statement.
We have said all along that our imposition of duties on Chinese tires was fully consistent with our WTO obligations. It is significant that the WTO panel has agreed with us, on all grounds.
This is the latest in a series of wins for U.S. workers in their battle to level the trade playing field against China. The USW has filed a series of complaints against illegal and improper trade practices by China’s government.
In the past few months, the Obama administration has accepted a USW complaint against subsidies to clean energy manufacturers by China’s government and the U.S. International Trade Commission (USITC) in October ordered duties imposed on paper products illegally dumped in the United States by China’s government.
This article was originally posted on AFL-CIO Blog.
About the Author: James Parks had his first encounter with unions at Gannett’s newspaper in Cincinnati when his colleagues in the newsroom tried to organize a unit of The Newspaper Guild. He is a journalist by trade, and worked for newspapers in five different states before joining the AFL-CIO staff in 1990. His proudest career moment, though, was when he served, along with other union members and staff, as an official observer for South Africa’s first multiracial elections. Author photo by Joe Kekeris
Tags: James Parks, United Steelworkers, World Trade Organization Posted in Free Trade | 1 Comment »
Tuesday, September 14th, 2010
Long-suffering victim is hardly the American image. Paul Revere, Mother Jones, John Glenn, Martin Luther King Jr. — those are American icons. Bold, wry, justice-seeking.
So how is it that America finds herself in the position of schoolyard patsy, woe-is-me casualty of China’s illegal trade practices that are destroying U.S. renewable energy manufacturing and foreclosing an energy-independent future?
Come on, America. Show some of that confident pioneer spirit. Stand up for yourself. Tell China that America isn’t going to hand over its lunch money anymore; international trade law will be enforced now.
That’s the demand the United Steelworkers (USW) union made this week when it filed a 5,800-page suit detailing how China violates a wide variety of World Trade Organization (WTO) obligations.
The case, now in the hands of the U.S. Trade Representative, shows how China uses illegal land grants, prohibited low-interest loans and other outlawed measures to pump up its renewable energy industries and facilitate export of those products at artificially low prices to places like the United States and Europe.
The U.S. aids renewable energy industries, like solar cell and wind turbine manufacturers, but no where near the extent that China does. And the American aid lawfully goes to renewable manufacturers that produce for domestic consumption. China, by contrast, illegally subsidizes industries that export, a strategy that kills off competition.
The USW recognizes and appreciates that trade with China has lifted millions there out of poverty. But truly fair trade would benefit workers in both China and the United States. And that is what the USW is demanding.
The USW is far from alone in accusing China of violations. New York Times reporter Keith Bradsher described them in a story Sept. 8, titled “On Clean Energy, China Skirts Rules.” It ends with this quote from Zhao Feng, general manger of Hunan Sunzone Optoelectronics, a two-year-old solar panel manufacturer that exports nearly 95 percent of its products to Europe and is opening offices in three U.S. cities to push into the American market:
“Who wins this clean energy race really depends on how much support the government gives.”
The U.S. isn’t providing support that violates WTO regulations. China is. And it’s hundreds of billions — $216 billion from China’s stimulus package, another $184 billion to be spent through 2020, $172 million in research and development over the past four years.
Bradsher’s story details illegal aid given Sunzone and says that it’s common, not exceptional. It includes China turning over land to Sunzone for a third of the market price and government-controlled banks granting Sunzone low-interest loans that the provincial government helps Sunzone repay.
In addition, the USW suit notes that China, which accounts for 93 percent of the world’s production of so-called rare earth materials like dysprosium and terbium essential for green energy technology, has severely restricted their export. That practice, illegal under WTO rules, forces some foreign companies to move manufacturing to China to get access.
And when corporations move, China routinely – and illegally — mandates they transfer technology to Chinese partners, which often means U.S.-tax-dollar-supported research and development benefits China.
That is one reason China rose to first in the world in clean energy so quickly. China now leads globally in producing solar panels. It doubled its wind power capacity in one year – 2009. Worldwide, Chinese manufacturers supply at least half of all hydropower projects and fabricate 75 percent of all compact fluorescent light bulbs.
Meanwhile, here in the United States, BP shut down its solar panel manufacturing plant in Maryland this year and Evergreen Solar of Marlboro, Mass., plans to close its American plant, eliminating 300 U.S. jobs. Both are moving manufacturing to China.
Germany’s Solar World still manufactures in Europe and the United States, and its chief executive, Frank A. Asbeck, told Bradsher the German solar industry association is investigating whether to file a suit of its own to try to stop China’s illegal practices:
“China is cordoning off its own solar market to fend off international competition while arming its industry with a bottomless pile of subsidies and boundless lines of credit.”
The Times story also says China’s “aggressive government policies” are designed to ensure “Chinese energy security.”
China’s illegal aggression to secure its energy independence and dominate world production of green technology threatens the energy security of the United States.
America turned to renewables not just to diminish climate change but also to reduce dependence on foreign oil, an addiction that has entangled the U.S. in costly and bloody wars.
If the United States can’t build its own renewable energy products, it will forfeit the next generation high technology industry and good manufacturing jobs, and it will remain dangerously beholden to foreign nations for energy.
China agreed to follow international regulations when it joined the World Trade Organization. This pledge was crucial because China’s economy is government-controlled, very different from the free market economies of the United States and most Western nations.
Faced with blatant rule-flouting that has cost USW members their jobs and threatens to cost their children high-technology manufacturing of the future, the USW is demanding the American government put a stop to it.
That is how a true American acts. Americans have a sense of justice. They follow the rules and expect trading partners to do the same. When they don’t, Americans do something about it.
Tags: BP, China, dysprosium, Evergreen Solar, exports, forced technology transfer, Frank A. Asbeck, Hunan Sunzone Optoelectronics, imports, Keith Bradsher, New York Times, NYT, rare earth, rare earth materials, solar cells, Solar World, Stimulus, terbium, U.S. Trade Representative, United Steelworkers, USW, wind turbines, World Trade Organization, WTO, Zhao Feng Posted in Free Trade | 2 Comments »
Tuesday, August 10th, 2010
Red, 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.
Tags: A-Power Energy Generation Systems Ltd., Apollo Alliance, Arcelor-Mittal, blue collar, BlueGreen Alliance, Bridgestone-Firestone, Charlie Rose, energy independence, Green jobs, Grupo Mexico, import duties, Jinxiang Lu, LTV Steel, manufacturing, manufacturing jobs, PBS, renewable energy, Rio Tinto, SCA, Sen. Sherrod Brown, Severstal, Shenyang Power Group, Svenska Cellulosa AB, Tianjin Pipe, U.S. Commerce Department, U.S. Renewable Energy Group, unfair trade, United Auto Workers, United Steelworkers, white collar, Wilbur Ross, Wind farm, wind turbine Posted in manufacturing | 1 Comment »
Tuesday, August 3rd, 2010
Rosie 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.
Tags: AAM, Alliance for American Manufacturing, American Manufacturing, China, Chrysler, currency manjipulation, Daniel Lipinski, Grand Cherokee, Jeep, manufacturing, Mark Mellman, Mellman Group, One Nation Working Together, Rosie the Riveter, United Steelworkers, USW, Whit Ayres Posted in Buy American Act | 1 Comment »
Thursday, July 1st, 2010
In the film, “Monte Python and the Holy Grail,” King Arthur severs both of the Black Knight’s arms during a sword fight, but the Black Knight attempts to battle on.
The king admonishes him: “You’ve got no arms left.”
The knight refutes that: “Yes I have.”
“Look,” at the obvious, the king tells him.
“Just a flesh wound,” retorts the knight, who clearly is suffering a state of denial.
Similarly, in the trade clash between China and America, the Asian giant has gravely wounded the United States. China knows it. U.S. voters of all political stripes know it. But too many American politicians, like the Black Knight, are in denial.
Their deliberate blindness, and resulting inaction, has enabled China to continue devaluing its currency, the Renminbi, against the dollar, a practice that makes its exports artificially cheap in U.S. markets and U.S. exports to China wrongfully overpriced. China announced just before the G-20 summit in Toronto that it would allow the value of the Renminbi to float up on world markets – and then permitted the currency that is undervalued by as much as 40 percent against the dollar to rise an underwhelming one half of one percent.
Political inaction also has facilitated China’s flouting of international trade rules forbidding government subsidies to manufacturers. The Chinese subsidies result in falsely low-priced Chinese goods flooding U.S. markets and submerging U.S. manufacturers.
Main Street Americans see the obvious. They said so in a poll conducted late in April by The Mellman Group for the Alliance for American Manufacturing (AAM). The likely voters – who identified themselves as Republican, Democrat, Tea Party and Independent – said Washington must focus on manufacturing because it is crucial to America’s economic strength. Large majorities said the U.S. should strengthen domestic manufacturing and develop a national manufacturing policy.
Unfortunately, too many politicians who loll in the rarefied world of Washington, D.C. — so far from Main Street, so very far from an actual factory — don’t see it. So they’ve failed to solve the problems.
A report issued this week by the Economic Policy Institute (EPI) details the trade difficulties encountered by one American industry – paper manufacturers. Its struggles mirror those that have maimed many other U.S. manufacturers, including pipe mills and tire plants.
The report, “No Paper Tiger: Subsidies to China’s Paper Industry from 2002-09,” notes that in 2008, China overtook the United States to become the world’s largest producer of paper and paper products. This score by China is the solid evidence for the gut feeling Americans expressed in the Mellman poll for AAM. A significant majority told the pollsters they believed the U.S. had lost to China the position of world’s strongest economy.
Americans didn’t need a report to spell out for them what their families and neighborhoods had suffered over the past decade. They’d experienced the closing of more than 10 percent of U.S. manufacturing plants in their communities from 2001 to 2009 – a loss of 42,404 factories. In the paper industry alone, 159,000 of their relatives and neighbors lost their jobs as paper mills closed or cut production during the seven-year period covered by the “No Paper Tiger” study.
A woman from Los Angeles told the Mellman pollsters that this relentless loss of manufacturing capability enfeebles America: “When you consume more than you produce, you become dependent, and we are consuming more from other countries than producing our own. . .truly we have become weak and in order to strengthen the economy, I think we need to produce more.”
The U.S. will, however, continue to produce less, the “No Paper Tiger” report makes clear, if Washington doesn’t act against predators violating international regulations. The report explains that China’s government granted at least $33 billion in subsidies to paper manufacturers to accomplish the country’s rapid rise to global leader in paper production.
In its central government-controlled economy, China gives paper companies money and breaks, much of which is improper under international trade regulations. For example, some paper companies get “loans” that they don’t have to repay. The government provides tax breaks, artificially low-priced electricity and underpriced raw materials. This explains how Chinese paper companies increased capacity by an average of 26 percent every year since 2004 even as prices for paper fell internationally and costs for raw materials for paper production in China rose steeply.
China’s rule-violating subsidies and deliberate currency devaluation explain the low price of Chinese paper. Labor costs don’t account for it. That’s because labor is such a tiny percentage of the price of paper – in both the U.S. and China. In China, it’s 4 percent of production cost; in the U.S. it’s 8 percent.
By contrast, Chinese paper manufacturers confront expensive problems that the American industry does not. In China, obtaining raw materials for paper making is complicated and costly because the country has among the smallest forestry resources in the world per capita. In addition, the “No Paper Tiger” report says, the Chinese industry is relatively inefficient. In the U.S., the paper industry is highly efficient and has easy access to abundant natural resources.
The U.S., a market economy, simply does not routinely prop up manufacturers the way China does.
The “No Paper Tiger” report says that if nothing changes, U.S. paper manufacturers will continue to lose money, close mills and bleed jobs. The U.S. could be reduced to serving as nothing more than the supplier of raw materials for Chinese paper production, as if America were an undeveloped third world country incapable of manufacturing on its own.
China’s subsidization of its paper manufacturers isn’t unique. It supports many of its industries. Chinese government intervention in the market accounts for a significant portion of the manufacturing loss in America. That loss diminishes American security.
America is losing her arms. Denying it doesn’t help.
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.
Tags: AAM, Alliance for American Manufacturing, Black Knight, China, currency manipulation, G-20, King Arthur, Leo W. Gerard, Mellman Group, Monty Python, paper industry, paper manufacturers, Renminbi, subsidies, United Steelworkers, USW Posted in manufacturing | 1 Comment »
Wednesday, June 23rd, 2010
The sound that American wind turbines produce as their giant, breeze-propelled blades whip around is a distinctive: Neh-neh-neh-neh-neh-neh.
The anticipation is that those energy-generating, whirling arms would create a whooshing sound. And maybe they do in some countries. But here, in America, they echo the almost melodic taunt of a schoolyard victor — Neh-neh-neh-neh-neh-neh: You can’t get me.
That’s because American wind turbines are the manifestation of freedom from foreign oil. The more American wind turbines, the fewer barrels of oil America must import to meet its energy needs. And American-built wind turbines help propel the nation out of the worst economic crisis since the Great Depression by generating good-paying American jobs.
President Obama talked about the ugly results of the nation’s refusal to solve its dependency problem – its guzzling of 20 percent of the world’s oil while controlling less than two percent of the world’s reserves. America’s combination of oil addiction and lack of adequate oil resources enslaves the nation to foreign sources, often foreign sources hostile to America. A generation ago, former President Jimmy Carter warned of the consequences of this abusive relationship as Iran held 52 Americans hostages and long lines formed at gasoline stations during a season of shortages.
Carter installed on the White House roof a symbol of the solution — solar panels. His successor there, Ronald Reagan, pulled them down. And the nation went on its merry way forgetting the once-empty gasoline stations and ignoring its ever-increasing foreign dependency – even as the Exxon Valdez mucked Prince William Sound two months after Reagan left office.
Here’s what Obama said about that wasted opportunity:
“And for decades, we have failed to act with the sense of urgency that this challenge requires. Time and again, the path forward has been blocked – not only by oil industry lobbyists, but also by a lack of political courage and candor.
The consequences of our inaction are now in plain sight. Countries like China are investing in clean energy jobs and industries that should be right here in America. Each day, we send nearly $1 billion of our wealth to foreign countries for their oil. And today, as we look to the Gulf, we see an entire way of life being threatened by a menacing cloud of black crude.”
The explosion of the Deep Water Horizon oil rig in the Gulf of Mexico, the deaths of 11 workers, the uncontrolled gushing of more than 50,000 barrels of oil a day into the sea, and the mucking of brown pelicans and four states’ coastlines have given Obama the ability to take up Carter’s righteous clean energy campaign. And Obama accepted the challenge:
“The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now. Now is the moment for this generation to embark on a national mission to unleash America’s innovation and seize control of our own destiny.”
The president noted that wind turbines are being built in retrofitted factories that were once abandoned right here in America. That happened in Pennsylvania. The wind turbine manufacturer Gamesa converted defunct mills into centers for wind turbine construction. And it cooperated with the United Steelworkers (USW) to provide good-paying union jobs.
That is the potential President Obama sees – independence from foreign sources and resurgence of America’s economy. It is the potential that the USW and the American Wind Energy Association (AWEA) pictured when they agreed earlier this month to work together to accelerate development and deployment of wind energy production in the U.S.
Like the Steelworkers, the national trade association of America’s wind industry believes the U.S. must move toward renewable energy sources and must construct them itself. U.S. Sen. Sherrod Brown of Ohio explained it simply when the USW and AWEA announced their partnership:
“We can’t replace our dependence on foreign oil with a dependence on Chinese-made wind turbines. It’s critical that American manufacturers have the resources to develop and deploy wind energy components. Clean energy will help America regain its leadership in manufacturing. We need to ensure American workers and manufacturers are building the clean energy components that will be used around the world.”
Obama called on Americans to “seriously tackle our addiction to fossil fuels.” But like any rehab program, success won’t come easily. Oil companies will continue to lobby against it. Swayed by their money, some politicians will oppose the legislation essential to encourage it.
But symbolic solar panels must remain on the White House roof this time. Renewable energy, as Obama said, enables America to shape its own destiny
The President urged the nation to free itself from its oil dependency now:
“As we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs – but only if we accelerate that transition. Only if we seize the moment.”
This is the time for wind turbines. For solar. For hydro. This is the moment to hear increasing numbers of rotor blades whipping up the sound of independence.
Carpe diem.
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.
Tags: American Wind Energy Association, AWEA, Barack Obama, black crude, BP, clean energy jobs, Deep Water Horizon, Exxon Valdez, foreign oil, Gamesa, Gulf Coast, Gulf of Mexico, Jimmy Carter, oil addiction, President Obama, Prince William Sound, renewable energy, retrofitted factories, Ronald Reagan, Sherrod Brown, solar energy, solar panels, United Steelworkers, USW, wind turbines Posted in Jobs | No Comments »
Tuesday, June 30th, 2009
Members of Congress met in town hall sessions Thursday with constituents who were on Capitol Hill to rally and demand health care reform. Read dispatches from some of the meetings.
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Ohio Weighs In
After the rally, more than 250 activists from Ohio met at the Columbus Club at Union Station to plan for an afternoon of lobbying and hear from members of Congress about health care reform.
 “Nothing is more important to me than ensuring that President Obama passes health care reform.”
The session was introduced by Tim Burga of the Ohio AFL-CIO, who decried the “free market run amok” in the current health care system and affirmed that we must have a serious public health insurance option.
He introduced Hattie Wilkins, who made one of the most moving speeches of the event.
Her situation illustrates the deep problems working families have with the way the current system operates. Hattie is a member of the United Steelworkers (USW) union who worked for 35 years for Brentwood Originals, a pillow factory in Youngstown, Ohio. The USW struck Brentwood Originals in 2008, and more than three-quarters of the workforce has been laid off. She was fired because of her strong support for the union, Hattie said. She has been collecting $887 a month in unemployment since then. She has COBRA coverage, and now pays $275 per month—31 percent of earnings from unemployment—for her health insurance. She pays another $450 per month for her mortgage payment, leaving her only $162 each month for food, utilities, transportation and all her other expenses. Now her unemployment payments are ending and she doesn’t know what she is going to do.
At 58 years of age, Hattie is searching for another job at places like McDonald’s but has to compete with applicants much younger than she is. She gave us her cell phone number, though she wasn’t sure how much longer she would have it. Hattie came to Washington, D.C., to participate in the rally and make sure her elected representatives heard her voice on this critical issue.
 Sen. Arlen Specter says health care is a right.
The Latest on Pennsylvania Town Hall
Sen. Specter has arrived, and compliments the crowd on its tenacity and commitment. Specter says he agrees that health care is a right and believes health care legislation will pass and will include a public option component. Of course, in a room full of union members, the Employee Free Choice Act came up. Specter says he is working hard to find an answer for early union certification and gaining first contracts.
Pennsylvania Update
The folks at Capitol City Brewing Co. are waiting for Sen. Arlen Specter to arrive. We hear reports he’s been at the White House.
From the North Carolina Meeting
Sen. Kay Hagan just arrived. She says the fight for health care reform is the “most important thing going on in our country.” Everyone in America must have health care coverage, she says, and patients with pre-existing conditions should be able to get health insurance.
About a public health insurance option plan, Hagan says some critics are getting caught up in nuance about language used in the debate. “I don’t care what you call it as long as it provides affordability accessibility and covers pre-existing conditions,” she says. We’d heard earlier reports that her staff told union leaders Hagan believes if health care reform passes, it will include a public option. The senator herself did not specifically say she supports the public option.
I think the key is if you have health insurance, you keep it. We don’t want to dismantle what exists.
More Pennsylvania Town Hall
Rep. Sestak arrived and talked about his daughter’s brain tumor and his health care plan to help keep her alive. Everybody deserves health care for themselves and their families, as well, he said. Sestak says his support for health care reform is “payback” to the country that provided health care for him and his family when he was in the Navy.
Everybody must be covered under health care reform, according to Sestak, and a public health insurance plan must be an option.
Nothing is more important to me than ensuring that President Obama passes health care reform.
Pennsylvania Town Hall
Hundreds of union members from Pennsylvania have packed a hall just a block from the U.S. Capitol to hear from their elected officials on the status of real health care reform. As they wait for Sen. Arlen Specter (D) and Rep. Joe Sestak (D) to appear, the chanting is in full force:
Congress, This is our demand. The option of a public plan.
What do we want? HEALTH CARE!
When do we want it? NOW!
Congress, This is our demand, the option of a public plan!
We are waiting for Specter and Sestak so we can spring that on them.
Rep. Kathy Dahlkemper (D) did not attend. A staff member is delivering her talking points.
Health care reform that guarantees quality, affordable health care reform must be passed.
We must ensure that patients’ choices are protected.
Maryland Town Hall
Sen. Barbara Mikulski, Rep. John Sarbanes and House Majority Leader Steny Hoyer speak to hundreds of Maryland workers and all support public option.
Rep. Blumenauer at Town Hall on Small Business
At a town hall focused on small business issues this morning at the U.S. Capitol Visitor Center, Rep. Earl Blumenauer (D-Ore.) advocated a public insurance option plan, guaranteed coverage and a “pay or play” system that would require businesses to provide health care coverage for their employees or pay into a fund. These reforms would level the playing field and reduce cost burdens on small businesses, he said.
This article originally appeared in AFL-CIO Now. Re-printed with permission by the author.
Tags: AFL-CIO, Arlen Specter, Capitol Hill, health care, healthcare, House Majority Leader Steny Hoyer, labor, Maryland, North Carolina, Ohio, Ohio AFL-CIO, Oregon, Pennsylvania, Rep. Earl Blumenauer, Rep. Joe Sestak, Rep. John Sarbanes, Rep. Kathy Dahlkemper, Sen. Barbara Mikulski, Sen. Kay Hagan, union, union blogs, unions, United Steelworkers, USW Posted in health care, healthcare | No Comments »
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