Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘United Steelworkers’

Is Korea FTA Job Loss, Deficit Growth a Harbinger of TPP?

Monday, March 17th, 2014
Image: Mike HallThe U.S.–Korea Free Trade Agreement (KORUS–FTA) turns 2 years old Saturday and imports from Korea continue to flood into the United States, costing workers their jobs. Exports to Korea have failed to live up to the promises made when the agreement passed Congress, says United Steelworkers (USW) President Leo W. Gerard. The agreement, he says:

Has failed to produce good jobs and the evidence on exports is clear. Our export growth rate in the past 20 out of 21 months is below the average monthly level seen before the FTA was signed.

Despite promises of U.S. job growth and improvements in trade balances (similar to what we’re hearing about the Trans-Pacific Partnership Free Trade Agreement [TPP])—Gerard says imports from Korea are up by 4% and:

The monthly U.S. trade deficit with Korea has ballooned 45 percent when compared to the pre-FTA level. The damage from KORUS and other free trade deals have been shown by the Economic Policy Institute to have caused the loss of tens of thousands of good-paying U.S. manufacturing jobs.

He warns that if TPP has the same negative and growing impact as KORUS, America’s job losses and the effect of trade imbalances will multiply.

Read more from the USW.

In related trade news, there is still time for you to sign the petition to Congress to stop the legislation (H.R. 3830/S. 1900) that would give Fast Track trade authority approval for all major trade agreements over the next four years, including the TPP.

Under the Fast Track process, Congress can only vote yes or no on the full agreement. It cannot amend, improve or fix any flaws in the bill. The North American Free Trade Agreement and other job-killing trade deals were approved via Fast Track.

This article was originally printed on AFL-CIO on March 14, 2014.  Reprinted with permission.

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

Honeywell Plant Freezes Summer Vacations

Monday, August 12th, 2013

Mike ElkAt a time of year when many workers are taking family vacations, uranium workers at Honeywell’s plant in Metropolis, Ill. won’t have that option. On July 27, the company announced a vacation freeze. United Steelworkers Local 7-669, which represents workers at the plant, claims that the decision is just another salvo in a three-year-long battle by Honeywell to bust the union.

Honeywell is currently in the process of rehiring several hundred operations workers at the uranium plant who were laid off in July of 2012 when the plant shut down for earthquake-safety improvements requested by the Nuclear Regulatory Commission.

Earlier this year, Honeywell began slowly rehiring the laid-off workers—both hourly union employees and non-union salary employees—to restart the plant. Now all but 21 of the 200 union employees have been rehired as the plant moves toward full operationality. But instead of rehiring the final 21 union workers, Honeywell is proceeding short-staffed and calling in workers on their days off to make up the gap.

In order to put pressure on the company to rehire the 21 laid-off union members, some union employees are refusing to work any overtime (and passing up the time-and-half pay). In response, Honeywell announced that because of the staffing shortage, no workers can take a vacation this summer.

In a July 27, 2013 email to employees, Honeywell Metropolis Operating Manager Jim Pritchett wrote:

Effective immediately, all vacations are cancelled and no further vacations are to be granted in operations including individuals’ days—that includes all hourly and salaried staff. The purpose is to assure we are staffed to support operations and to continue to get the remaining units on line so we can support our customers. … I am disappointed it has gotten to this but we have no choice due to employees not responding to call ins and taking care of their responsibilities…. This vacation freeze will be lifted as soon as the business needs of the plant are being effectively met by people coming when they are called.

The union speculates that Honeywell has an ulterior motive for not hiring the remaining 21 workers: It doesn’t want to rehire Local 7-669 President Stephen Lech. Under the union contract, Honeywell is obligated to rehire all of the laid-off union employees according to a mutually agreed upon list developed according to workers’ qualifications and seniority. The next person on the list is Lech.

“It’s directly targeting me for my work as union president,” says Lech, who thinks that Honeywell is trying to send a message about the length that the company is willing to go to crush the union.

The union says that instead of following the list, Honeywell has told the final 21 workers that they must compete against outside applicants and reapply for their jobs as if they were new hires directly off the street.

“It’s a violation of the contract,” Lech says. “How can Honeywell do it? Well, Honeywell does whatever they want.”

“It will take six months before the case even gets before an arbitrator and another six months before the arbitrator rules,” he says.

Workers are refusing overtime in the hopes that they can resolve the issue sooner. Many were planning family vacations and were outraged by the vacation moratorium.

“It’s a morally bankrupt company that punishes their employees for staffing shortages it created out of spite,” reads a text message to Working In These Times by one Honeywell employee who wished to remain anonymous for fear of being fired. “Two years ago we took their lousy contract and they’re still kicking us.”

Honeywell did not respond to request for comment for this piece.

Lech says that despite being laid off, he is undeterred from his work for the union.

“This absolutely will not stop me from doing my job,” says Lech. “Heck, I got more time than ever to work as union president.”

This article originally appeared on Working In These Times on August 12, 2013.  Reprinted with permission.

About the Author: Mike Elk is an In These Times Staff Writer and a regular contributor to the labor blog Working In These Times.

Pizza-Making Strikers Win Small Slice of Justice in Milwaukee

Monday, August 5th, 2013

Roger BybeeThe 14-month-long strike at Palermo’s Pizza in Milwaukee produced a small slice of justice this week for the Mexican immigrant workers who have been fighting for higher wages, safer conditions and a union voice at the frozen-pizza maker.

Last Tuesday, Palermo’s finally agreed to comply with a finding by the National Labor Relations Board and re-hire eight workers with back pay, which will cost the pizza chain tens of thousands of dollars. The eight had been illegally fired for trying to unionize, the NLRB ruled.

Palermo’s has also agreed to post a notice announcing that the firm will no longer violate federal labor law. “This agreement confirms that Palermo’s used threats, intimidation, surveillance, discrimination, and retaliation to deny the freedom to choose a union voice,” says Raul de la Torre, an organizing committee member of the Palermo’s Workers Union. Fully 75 percent of the workers signed cards seeking union recognition prior to the strike, but Palermo’s management responded only with threats and other illegal tactics.

But Palermo’s decision to comply with the NLRB ruling does not reflect a softening of the intransigence that has driven about 125 workers, almost all immigrants from Mexico, out on strike for over a year. Palermo’s has refused for months to even engage in bargaining, said spokesperson Brian Rothgery of the United Steelworkers (USW) union, which has been assisting the Palermo’s strikers since they walked out on June 1, 2012.

Low pay, hazardous working conditions and arbitrary management decisions drove workers to form a union with the help of the immigrants-rights group Voces de la Frontera, which has been vocal and visible force in Wisconsin for the rights of immigrant workers.

Voces, the Palermo’s Workers Union and the USW are preparing to intensify their boycott of Palermo’s frozen pizzas at stores and institutions across the nation, said Rothgery. This escalation of the boycott will mean a focus on getting Palermo’s products removed from universities and on the Costco chain, which accounts for half of Palermo’s sales.

USW District 2 Director Mike Bolton called the settlement for the eight workers a positive development, but expressed exasperation with U.S. labor laws that allow a firm like Palermo’s to thwart the democratic choice of workers to form a union.

“It took much too long to get even this small bit of justice for these workers,” Bolton tells Working In These Times. “And unfortunately, they will be going back to jobs where union busters have created such an atmosphere of fear and intimidation that a democratic election is not possible.”

“The American system of labor laws has failed for most of the Palermo’s workers,” says Rothgery. “But that doesn’t mean we’re going to stop. The boycott is continuing, and we’ll keep fighting until there is justice for all the workers at Palermo’s.”

The workers and their allies will need to puncture the stone wall that has been Palermo’s response to the onslaught of community protests and legal challenges. Palermo’s refused to accept a letter from clergy and other community leaders following their 18-mile pilgrimage from Palermo’s plant to the palatial suburban home of Palermo’s co-owner Giacomo Falluci on June 1, 2013, the one-year anniversary of the strike.

Meanwhile, Palermo’s still faces various federal charges of both tolerating safety hazards and breaking labor-relations laws. Palermo’s is contesting seven “serious” charges filed May 7 by the Occupational Safety and Health Administration that its handling of nearly 30,000 pounds of anhydrous ammonia—used in freezing food—was unsafe and posed a severe safety hazard. Palermo’s faces $38,500 in fines from OSHA.

The penalties reflect the threat posed by a potential accident. The Environmental Protection Agency estimates that a one-minute accidental release of 1,000 pounds of ammonia would spread toxic fumes 1.2 miles in an urban area.  A release of the full 29,500 pounds could travelsix miles. The Milwaukee Brewers’ major-league baseball stadium, with a seating capacity of 42,200, is just 1.3 miles west of the Palermo’s plant.

OSHA also requested that the frozen-pizza company turn over uncensored records of worker injuries and other safety problems, after Palermo’s submitted information with key information redacted.

Unfair labor charges

Until finally conceding on the one NLRB complaint, Palermo’s had refused to comply with the NLRB order issued last November. Palermo’s management and its advisors—which include the Chicago-based anti-union Jackson Lewis law firm and the PR firm of prominent local Democrat Evan Zeppos–seemingly want to project a message that the firm is impervious to any form of pressure, and thereby demoralize the workers and their supporters, say supporters of the strikers.

“They want to flaunt their impunity, “ explained Christine Neumann-Ortiz, director of Voces de la Frontera, the influential immigrants-rights group which has reinvigorated Milwaukee’s long tradition of May Day marches—dating back to 1886–by assembling tens of thousands of immigrant workers and supporters. Zeppos has attacked Neumann-Ortiz in harsh terms for supposedly discouraging business development: “I’ve talked to businesses who say, ‘Why should I move to the valley when that’s happening?’ She has hurt the city, she has hurt those workers, and she has hurt herself. She’s become toxic property.”

Palermo’s has managed to replace the striking workers with “scab” replacement workers. Many of these replacement workers were hired through the BG temporary agency, which faces its own set of charges issued by the NLRB—including a contingent of refugees from Myanmar (until recently, a nation wracked by dire poverty ruled by an extraordinarily brutal military dictatorship). A 21 year-old refugee suffered the loss of three fingers in an accident at the plant.

Big subsidies for low-wage jobs

Palermo’s stance has been reinforced by the overtly pro-corporate and anti-unionadministration of Gov. Scott Walker, especially the scandal-wracked Wisconsin Economic Development Agency, which has been willing to overlook the company’s failure to provide family-sustaining wages as promised in exchange for state grants. Wages at Palermo’s have fallen far short of the $12 an hour target set a full decade back in 2003 by the Menominee Valley Partners, a joint public-private initiative, when a plan was laid out for the area, which had been vacated by many large employers. One Palermo’s worker reported that she made just $9.30 an hour after 10 years at the plant.

Total taxpayer subsidies to Palermo’s—from city, state, and federal sources—have totaled $48 million, according to an updated version of an AFL-CIO report called “Too Much Pork in the Pepperoni.”

Allies and foes

Despite Palermo’s failure to meet its obligations to taxpayers, the company has found allies in the Milwaukee area’s top Democratic leaders. County Executive Chris Abele, who both gained office with labor support, openly aligned himself with Palermo’s in an op-ed shortly after the dispute started. For his part, Mayor Tom Barrett issued a deceptively neutral-sounding call for a “fair and timely” union representation election late last November, in a statement describing Palermo’s as “a valued corporate citizen.” But holding elections under the prevailing conditions would mean that the Palermo’s strikers would be shut out of the election while replacement workers would constitute the voters, noted Neumann Ortiz.  “They [Palermo’s and Barrett] only want an election where the voters would be hand-picked,” she pointed out.

But has been extensive support for the workers around the state and in the local community—as exhibited by the clergy-led 18-mile walk to protest Palermo’s practices. At UW-Madison, students held a sit-in ON April 29 at the office of Chancellor David Ward and won a halt to the university’s licensing deal with Palermo’s, under which the UW receiveD about $200,000 for promoting Palermo’s pizzas with a “Bucky Badger” logo.

Some Wisconsin Democrats, like state Rep. Jon Richards, have been actively demanding records on Palermo’s failure to provide the quality jobs needed to comply with the terms of its subsidies. Several County Board and City Council members have also been outspoken in their support of the strikers.

Meanwhile, labor activists nationwide are pressuring chains like San Diego-based Costco to stop carrying Palermo’s pizzas until workers’ rights are honored. While Costco has marketed itself as a humane alternative to Wal-Mart’s infamous low-wage and unashamedly brutal disregard of worker suffering, as with victims of factory disasters in Bangladesh for whom Wal-Mart has denied any responsibility, Costco has thus far refused to budge on selling Palermo’s pizzas  produced under harsh conditions closer to home.

With Palermo’s concession n the rehiring of the eight workers and acknowledgement of labor-law violations, the Palermo’s strikers and their allies see a small step forward. The boycott campaign gains ammunition at universities with strong policies on labor rights.

But until a breakthrough occurs to cut significantly into Palermo’s sales, Palermo’s seems intent on maintaining a hard line against the strikers. Image-conscious Costco, with 449 warehouse-style stores across the U.S., may prove to be the crucial target if Palermo’s workers are ever to win justice.

This article originally posted on Working In These Times on August 5th, 2013.  Reprinted with permission.  

About the Author:Roger Bybee is a Milwaukee-based freelance writer and University of Illinois visiting professor in Labor Education. Roger’s work has appeared in numerous national publications, including Zmagazine, Dollars & Sense, The Progressive, Progressive Populist, Huffington Post, The American Prospect, Yes! and Foreign Policy in Focus.

New Co-Op Model for Sustainable Main Street Jobs

Thursday, March 29th, 2012

Image: Mike HallThe 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.”

First NAFTA-Wide Union Could Emerge This Year

Tuesday, July 19th, 2011

mike elkUnited 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.

Making America the Best Place on Earth to Work

Wednesday, February 2nd, 2011

Leo GerardNot 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.

WTO Ruling Shows Trade Law Can Work for Workers

Wednesday, December 15th, 2010

Image: James ParksA 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

Assert Yourself, America; Don't be an Illegal Trade Victim

Tuesday, September 14th, 2010

Leo GerardLong-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.

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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