Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘workers’

GOP Smash-And-Burn Tax Plan Does Nothing for Workers

Friday, October 27th, 2017

Congressional Republicans are selling a trickle-down tax scam times two. It’s the same old snake oil, with double hype and no cure.

A single statistic explains it all: one percent of Americans – that is the tiny, exclusive club of billionaires and millionaires – get 80 percent of the gain from this tax con. Eighty percent!

But that’s not all! To pay for that unneeded and unwarranted red-ribbon wrapped gift to the uber wealthy, Republicans are slashing and burning $5 trillion in programs cherished by workers, including Medicare and Medicaid.

Look at the statistic in reverse, and it seems worse: 99 percent of Americans will get only 20 percent of the benefit from this GOP tax scam. That’s not tax reform. That’s tax defraud.

Republican tax hucksters claim the uber rich will share. It’s the trickle down effect, they say, the 99 percent will get some trickle down.

It’s a trick. Zilch ever comes down. It’s nothing more than fake tax reform first deployed by voodoo-economics Reagan. There’s a basic question about this flim-flammery: Why do workers always get stuck depending on second-hand benefits? Real tax reform would put the rich in that position for once. Workers would get the big tax breaks and the fat cats could wait to see if any coins trickled up to jingle in their pockets.

House Speaker Paul Ryan claimed Republicans’ primary objective in messing with the tax code is to help the middle class, not the wealthy. Well, there’s a simple way to do that:  Give 99 percent of the tax breaks directly to the 99 percent.

The Republican charlatans hawking this new tax scam are asserting the pure malarkey that it provides two, count them TWO, trickle-down benefits. In addition to the tried-and-false fairytale that the rich will share with the rest after collecting their tax bounty, there’s the additional myth that corporations will redistribute downward some of their big fat tax scam bonuses.

A corporate tax break isn’t some sort of Wall Street baptism that will convert CEOs into believers in the concept of paying workers a fair share of the profit their labor creates.

Corporations have gotten tax breaks before and haven’t done that. And they’ve got plenty of cash to share with workers right now and don’t do it. Instead, they spend corporate money to push up CEO pay. Over the past nine years, corporations have shelled out nearly $4 trillion to buy back their own stock, a ploy that raises stock prices and, right along with them, CEO compensation. Worker pay, meanwhile, flat-lined.

In addition to all of that cash, U.S. corporations are currently sitting on another nearly $2 trillion. But CEOs and corporate boards aren’t sharing any of that with their beleaguered workers, who have struggled with stagnant wages for nearly three decades.

Still, last week, Kevin Hassett, chairman of the President’s Council of Economic Advisers, insisted that the massive corporate tax cut, from 35 percent down to 20 percent, will not trickle, but instead will shower down on workers in the form of pay raises ranging from $4,000 to $9,000 a year.

Booyah! Happy days are here again! With the median wage at $849 per week or $44,148 a year, that would be pay hikes ranging from 9 percent to 20 percent! Unprecedented!

Or, more likely, unrealistic.

Dishonest, incompetent, and absurd” is what Larry Summers called it. Summers was Treasury Secretary for President Bill Clinton and director of the National Economic Council for President Barack Obama.

Jason Furman, a professor at the Harvard Kennedy School who once held Hassett’s title at the  Council of Economic Advisers, called Hassett’s findings “implausible,”  “outside the mainstream” and “far-fetched.”

Frank Lysy, retired from a career at the World Bank, including as its chief economist, agreed that Hassett’s projection was absurd.

Hassett based his findings on unpublished studies by authors who neglected to suffer peer review and projected results with all the clueless positivity of Pollyanna. Meanwhile, Lysy noted, Hassett failed to account for actual experience. That would be the huge corporate tax cuts provided in Reagan’s Tax Reform Act of 1986.

Between 1986 and 1988, the top corporate tax rate dropped from 46 percent to 34 percent, but real wages fell by close to 6 percent between 1986 and 1990.

Thus many economists’ dim assessment of Hassett’s promises.

The other gob-smacking bunkum claim about the Republican tax scam is that it will gin up the economy, and, as a result, the federal government will receive even more tax money. So, in their alternative facts world, cutting taxes on the rich and corporations will not cause deficits. It will result in the government rolling in coin, like a pirate in a treasure trove. That’s the claim, and they’re sticking to it. Like their hero Karl Rove said, “We create our own reality.”

Here’s Republican Sen. Patrick J. Toomey, for example: “This tax plan will be deficit reducing.”

If the Pennsylvania politician truly believes that’s the case, it’s not clear why he voted for a budget that would cut $473 billion from Medicare and $1 trillion from Medicaid. If reducing the tax rate for the rich and corporations really would shrink the deficit, Republicans should be adding money to fund Medicare and Medicaid.

While cutting taxes on the rich won’t really boost the economy, it will increase income inequality. Makes sense, right? Give the richest 1 percenters 80 percent of the gains and the remaining 99 percent only 20 percent and the rich are going to get richer faster.

Economist Thomas Piketty, whose work focuses on wealth and income inequality and who wrote the best seller “Capital in the Twenty First Century,” found in his research no correlation between tax cuts for the rich and economic growth in industrialized countries since the 1970s. He did find, however, that the rich got much richer in countries like the United States that slashed tax rates for the 1 percent than in countries like France and Germany that did not.

This Republican tax scam is a case of the adage that former President George W. Bush once famously bungled: “Fool me once, shame on you. Fool me twice, shame on me.”

This blog was originally published at OurFuture.org on October 27, 2017. Reprinted with permission.

About the Author: Leo Gerard, International President of the United Steelworkers (USW), took office in 2001 after the retirement of former president George Becker.

OSHA's Claims About Hiding Information on Worker Deaths Fall Flat

Friday, September 15th, 2017

Since January, government agencies under the Donald Trump administration have taken steps to hide information from the public–information that was previously posted and information that the public has a right to know.

But a recent move is especially personal. Two weeks ago, the agency responsible for enforcing workplace safety and health—the Occupational Safety and Health Administration—removed the names of fallen workers from its home page and has stopped posting information about their deaths on its data page. In an attempt to justify this, the agency made two major claims discussed below. Like many efforts to decrease transparency by this administration, these claims are unfounded, and the agency whose mission is to protect workers from health and safety hazards is clearly in denial that it has a job to do. Here’s how:

OSHA claim #1: Not all worker deaths listed on the agency website were work-related because OSHA hasn’t issued or yet issued a citation for their deaths.

Fact: It is public knowledge that 1) OSHA doesn’t have the jurisdiction to investigate about two-thirds of work-related deaths but does issue guidance on a wide variety of hazards to workers that extend beyond their enforcement reach, and 2) OSHA citations are not always issued for work-related deaths because of a variety of reasons, including limitations of existing OSHA standards and a settlement process that allows employers to remedy certain hazards in lieu of citation. (The laborious process for OSHA to develop standards deserves a completely separate post.) But neither of those points mean the agency cannot recognize where and when workers are dying on the job, and remember and honor those who sought a paycheck but, instead, did not return home to their families.

In fact, the federal Bureau of Labor Statistics, also housed in the Department of Labor, counts and reports the number of work-related deaths each year. The agency reported that in 2015, 4,836 working people died of work-related traumatic injury—”the highest annual figure since 2008.” So, another agency already has taken care of that for OSHA (whew!). But this is just a statistic. Luckily for OSHA, employers are required to report every fatality on the job to OSHA within eight hours, so the agency has more specific information that can be used for prevention, including the names of the workers and companies involved, similar to the information the public has about deaths that occur in any other setting (outside of work).

OSHA claim #2: Deceased workers’ families do not want the names and circumstances surrounding their loved ones’ death shared.

Fact: Removing the names of fallen workers on the job is an incredible insult to working families. The shock of hearing that your family member won’t be coming home from work that day is devastating enough, but then to hear that their death was preventable, and often the hazards were simply ignored by their employer, is pure torture. The organization made up of family members who had a loved one die on the job has stated repeatedly that it wants the names of their loved ones and information surrounding their deaths shared. It does not want other families to suffer because of something that could have been prevented. The organization has made it very clear that it opposes OSHA’s new “out of sight, out of mind” approach.

So why shield this information from the public? We know the Chamber of Commerce and other business groups have long opposed publication of this information. The Trump administration seems to live by very old—and very bad—advice from powerful, big business groups whose agenda it’s pushing: If we don’t count the impact of the problem or admit there is a problem, it must not exist.

This blog was originally published at AFLCIO.org on September 15, 2017. Reprinted with permission. 

About the Author: Rebecca Reindel is a senior health and safety specialist at the AFL-CIO.

With All Eyes on DACA, the Trump Administration Is Quietly Killing Overtime Protections

Thursday, September 7th, 2017

On September 5, the administration of Donald Trump formally announced that they won’t try to save Obama’s overtime rule, effectively killing a potential raise for millions of Americans. This disturbing development has largely slipped under the radar during a busy news week, marked by Trump’s scrapping of the Deferred Action for Childhood Arrivals (DACA) program.

Twenty-one states and a number of business groups sued the Obama administration last September, after the Department of Labor (DOL) announced the new rule, accusing the former president of overreach.

That lawsuit led to Amos Mazzant, a federal Obama-appointed judge in Texas, putting the rule on hold last November, shortly before it was set to become law. On August 31, Mazzant struck the rule down, and—less than a week later—Trump’s Department of Justice (DOJ) declined to challenge the District Court’s decision. In a court filing, a DOJ lawyer said that the administration would not appeal.

The Obama administration’s rule would have raised the overtime salary threshold considerably. The threshold hadn’t been increased by any administration to adequately reflect wage growth or inflation, which means that many workers only see overtime pay if they make less than about $23,660 a year. Obama had scheduled that number to be bumped up to about $47,476 after reviewing 300,000 comments on the subject.

“The overtime rule is about making sure middle-class jobs pay middle-class wages,” former Labor Secretary Tom Perez told reporters on a call after the rule was announced in May 2016. “Some will see more money in their pockets … Some will get more time with their family … and everybody will receive clarity on where they stand, so that they can stand up for their rights.”

While the overtime rule faced predictable opposition from Republicans and business groups, it also received backlash from some liberal advocacy organizations. In May 2016, U.S. PIRG, the popular federation of non-profit organizations, released a statement criticizing Obama’s decision. “Organizations like ours rely on small donations from individuals to pay the bills. We can’t expect those individuals to double the amount they donate,” said the group.

Critics of the statement pointed out that U.S. PIRG’s opposition suggests they have employees not being paid for overtime despite their low wages. The group was slammed by progressives for supporting a regressive policy when it benefited their economic interests.

The DOL claimed that the rule would mean a pay increase for about 4.2 million Americans, but the Economic Policy Institute (EPI) contends that the DOL’s figure is far too low. According to EPI, the DOL’s analysis fails to take the impact of George W. Bush’s overtime policies into account and relies heavily on statistics that were generated before he took power. EPI estimates that, because of changes to employee classifications in 2004, roughly 6 million workers had their right to overtime destroyed.

The EPI’s study of the overtime rule determined that about 12.5 million workers would have been impacted if it had been implemented. A wide range of workers would have potentially seen a pay increase, including 6.4 million women, 1.5 million African Americans and 2.0 million Latinos, the EPI concludes.

“Once again, the Trump administration has sided with corporate interests over workers, in this case, siding with business groups who care more about corporate profits than about allowing working people earn overtime pay,” Heidi Shierholz, who leads the EPI’s Perkins Project on Worker Rights and Wages, told In These Times.

The Trump administration’s move might be disappointing for workers’ rights advocates, but it’s hardly surprising. As a presidential candidate in 2016, Trump vowed to kill the overtime rule if elected. “We have to address the issues of over-taxation and overregulation and the lack of access to credit markets to get our small business owners thriving again,” he said in an interview. “Rolling back the overtime regulation is just one example of the many regulations that need to be addressed to do that.”

While many pundits have focused on Trump’s unrelenting series of failures and scandals, his administration has quietly waged a fairly successful war on labor. In addition to nixing one of Obama’s most notable policy achievements, the Trump administration is also poised to stack the National Labor Relations Board with a pro-business majority, has proposed major cuts to the Labor Department and has rolled back safety protections for workers.

Last month, Bloomberg reported that Trump’s Labor Department had created an office specifically designed to reconsider government regulations. The office will be run by Nathan Mehrens, the anti-union lawyer who is also in charge of the department’s policy shop.

Trump geared much of his campaign rhetoric toward the U.S. worker, vowing to dismantle exploitative trade agreements and bring back jobs. However, his administration has simply emboldened the anti-labor forces that have dictated economic policy for decades.

This blog was originally published at In These Times on September 7, 2017. Reprinted with permission. 

About the Author: Michael Arria covers labor and social movements. Follow him on Twitter: @michaelarria

Why Defending Workers’ Rights Means Fighting ICE’s Deportation Machine

Friday, August 25th, 2017

Last month, California Labor Commissioner Julie Su distributed a memo instructing her staff to turn away any Immigration and Customs Enforcement (ICE) agents who show up at labor offices without a federal warrant. This action came in response to three recent cases in which ICE sought workers’ information shortly after they filed claims against their employers. Su told The Los Angeles Times that, in two of these cases, ICE officials showed up at the employees’ labor hearing. In case ICE continues to show up at such hearings, Su provided suggested scripts to guide the interaction. “Would you please leave our office? The Labor Commissioner does not consent to your entry or search of any part of our office,” reads one portion of the text.

ICE’s targeting of labor hearings falls into a much broader pattern of workplace immigration raids. The second term of the George W. Bush administration saw a boom in such policies, with authorities carrying out hundreds of sweeps targeting workers. In May of 2008, hundreds of Homeland Security agents swooped into Postville, Iowa and arrested 389 employees at a kosher meatpacking plant. Nearly 300 of those workers spent five months in jail before being deported. In a town with a population of just 2,300 people, this meant that more than 10 percent of all residents were incarcerated as the result of one raid. “They don’t go after employers. They don’t put CEOs in jail,” said Postville Community Schools superintendent David Strudthoff at the time. “[This] is like a natural disaster—only this one is man-made. In the end, it is the greater population that will suffer and the workforce that will be held accountable.”

While Barack Obama deported more people than any other president, the tactic of targeting workers fluctuated on his watch. Data from ICE indicates that workplace immigration arrests peaked for Obama in 2011—but never reached the levels seen under Bush. The National Employment Law Project’s (NELP) Haeyoung Yoon told In These Times that, while we haven’t seen widespread examples of workplace raids under the Trump administration, this doesn’t mean they’re not coming eventually. “These efforts take a lot of time to plan,” said Yoon.

Underscoring Yoon’s point, 55 undocumented workers were detained in February in a series of Mississippi restaurant raids. After the arrests, ICE public affairs officer Thomas Byrd said that the federal search warrants were part of a year-long investigation.

State organizations like the Illinois Business Immigration Coalition are training employers to prepare for the possibility of such sweeps. NELP and the National Immigration Law Center have created a helpful guide for businesses concerned about ICE raids, which includes details on how to keep agents out, what to do if they enter and what actions can be taken after they leave. “Employers and their employees have rights when it comes to immigration enforcement in the workplace,” wrote NELP staff attorney Laura Huizar shortly after the guide was published. “Employers can and should take steps now to protect those rights and do what’s best for their business and their teams.”

In California, where almost half of the state’s farmworkers are undocumented, there have been recent legislative efforts to combat workplace raids. The SEIU-sponsored Immigrant Worker Protection Act (AB 450) is a bill, introduced this March, that would require all employers to demand a federal warrant if ICE shows up. The legislation, which was introduced by San Francisco Assemblymember David Chiu, would also prevent businesses from handing over personal employee information unless they were subpoenaed.

But what is to be done about employers who willingly collude with ICE? While explaining her memo, Julie Su told the Los Angeles Times that she suspected businesses of tipping agents off to labor hearings, events where only the employer and employee would be aware of the scheduled time. Earlier this year, Jose Flores, a 37-year-old Massachusetts man, was arrested by ICE shortly after a workers’ compensation meeting. Flores’ lawyers believe that the arrest might have been retaliation from Flores’ employer, Tara Construction, looking for a way to get out of paying out the claim. Stephen Murray, a lawyer for Tara Construction, insists that his client made no contact with ICE and had no reason to believe Flores’ was undocumented.

A recent investigation by ProPublica and NPR reveals that this is hardly an isolated case. Their review focuses on Florida, where a 2003 law made it illegal to for workers to file compensation claims using false identification. In the 14 years since, at least 130 injured workers were arrested under the law. At least one in four of those workers was detained by ICE or deported. “State fraud investigators have arrested injured workers at doctor’s appointments and at depositions in their workers’ comp cases,” reads the report. “Some were taken into custody with their arms still in slings.”

The report also points out that the Florida model could be a preview of widespread things to come under the Trump administration. If this is true, then the labor movement could end up taking a closer look at Tom Cat Bakery in Queens, where a Homeland Security inquiry and promise of subsequent firings sparked radical protests. Employers who openly collude with Trump’s deportation machine might soon be targets of the same resistance.

 This article was originally published at In These Times on August 21, 2017. Reprinted with permission.
About the Author: Michael Arria covers labor and social movements. Follow him on Twitter: @michaelarria

In Their Own Words: Why Immigrant Worker Protections Must Be Extended

Wednesday, August 16th, 2017

A primary goal of the labor movement is to make every job in our country a good job. To do that, we must and we will stand with every worker in the fight for basic rights and dignity on the job. More than 1 million working people are in danger of having their work permits stripped away if the Trump administration ends the Temporary Protected Status and Deferred Action for Childhood Arrivals programs. This is unacceptable. We will fight for and with them just as they have fought for and with all of us.

The DACA and TPS programs help working people and they help the country. Here are just a few stories of union members whose lives have been changed because of these programs. Please send us your story of how DACA and TPS made your life better and helped you exercise your basic rights and find dignity on the job.

Reyna Sorto, Painters and Allied Trades (IUPAT) member:

Employers exploit immigrant workers because they think our fear will keep us silent from speaking out against abuses, even though TPS is not permanent, it does provide a level of protection that can give a worker strength to speak truth to power and denounce exploitative working conditions.

Karen Reyes, DACAmented teacher in Austin, Texas, and member of AFT:

DACA made me visible. It made me realize that those opportunities that I thought were not for me—were now possible. DACA made it possible for me to be able to find a job in teaching. It made it possible to be able to earn money to be help out my mom while she went through numerous health issues. DACA made it possible for me to teach children who are deaf and hard of hearing. DACA made me find my voice and made me be able to live without fear. We must #DefendDACA because after living here for 26 years—I am here to stay.

Gerdine Vessagne, housekeeper in Miami Beach, Florida:

TPS has allowed me to provide for my five children, including two back home and three born here. But this isn’t just about me. Over 50,000 Haitian nationals working in the U.S. have this protected status. We are the engine of Florida’s hospitality industry, much of which greatly depends on our labor.

Cecilia Luis, housekeeper in Orlando, Florida.:

I know a lot of people here that don’t eat or sleep because they’re worried they’ll be sent back to Haiti. It’s not as easy to leave when you’re sending money to your family to help them survive. My God knows everything, and I’m asking him to speak to their hearts so they don’t do this. A lot of people will suffer.

Areli Zarate, DACAmented teacher in Austin, Texas:

DACA allowed me the opportunity to come out of the shadows and lose the fear of deportation. I have a social security number and work permit which gives me the opportunity to follow my dream and teach. I am about to begin my fourth year of teaching with a big heart filled with love and passion for my profession. I am dedicated to my students and it’s hard to see myself doing something else. Yet, every time I have to renew my DACA I am reminded that my status is temporary. I am currently pending a decision on my renewal and I am praying to God that I will be allowed to teach for another two years until my next renewal.

Maria Elena Durazo, UNITE HERE General Vice President for Immigration, Civil Rights and Diversity, spoke for many working people in the hospitality industry:

The American hospitality industry runs because of the women and men on DACA and TPS working in it. These immigrants prove their value to this country every day, and many have been living in and contributing to America for more than a decade. These men and women have deep roots in this country, and are longtime employees, spouses, parents, neighbors and community members. Losing DACA and TPS would destroy both their families and the hotel industry that is built on their work. We must extend TPS and protect DACA—for our sisters and brothers working under them, for their families and for the health of the American economy.

These stories make it clear that the ability to exploit any worker undermines standards for all working people. Increasing the pool of vulnerable workers in our country directly threatens the labor movement’s mission of raising wages and improving working conditions. We call on our nation’s leaders to reverse the destructive course we are on and take these immediate steps to reduce the fear in our workplaces:

  • Defend DACA and protect this vital young workforce;
  • Continue TPS for all affected countries; and
  • Protect labor rights by preventing immigration enforcement from interfering with other important roles of government.

The words of AFL-CIO President Richard Trumka sum it up:

DACA and TPS holders are members of our families, our unions and our communities who have made positive contributions to our society for many years. We will not allow them to lose their rights and status. We will stand with them in the fight to defend these programs as a necessary part of our long-term struggle to ensure that all working people have rights at work and the freedom to negotiate together for fair pay and conditions.

We call on the Trump administration to demonstrate a genuine commitment to lifting up the wages, rights and standards of all working people by acting to defend and extend vital DACA and TPS protections.

This blog was originally published at AFLCIO.org on August 16, 2017. Reprinted with permission.

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

Don’t Dawdle on Economic and National Security

Monday, July 31st, 2017

The future of the American steel and aluminum industries is not a matter for dithering.

Each mill and smelter that remains operating is too vital. Each is too crucial to the economic viability of a corporation, a community, and thousands of workers and their families.

Each also is too essential to national security, which relies on American-produced metals for critical infrastructure, from bridge construction to the electrical grid, and for munitions, from fighter jets to bullet-proof vests.

There is no more time for waiting. International trade law must be enforced now. Throughout his campaign, Donald Trump pledged his support to workers and these industries. And he followed through by launching within three months of taking office as president special investigations into the effects of steel and aluminum imports on national security.

Such inquiries may take as long as a year to conclude, but the administration expedited the process. Until it didn’t. Now steel and aluminum corporations, their communities and their workers are being told to wait. It’s a delay that could kill more American mills and smelters.

The nation lost nine aluminum smelters over the past six years, leaving only five in the entire country, and most of them are now operating at reduced levels. Beginning in January 2015, steel companies laid off 14,000 workers as they closed mills and sections of mills.

For example, Allegheny Technologies shuttered a plant that made grain oriented electrical steel in 2016, leaving only one U.S. company, AK Steel, now producing this component critical to electricity transmission.

As mills and smelters disappear, the military is further restricted in its ability to secure domestically produced essential metals in time of crisis.

The primary culprit in this scary scenario is overcapacity and overproduction in China, which overwhelms the world market with illegally subsidized, grossly underpriced aluminum and steel.

China has promised repeatedly to solve this problem. On Thursday it pledged again, this time contending it wanted to work globally to deal with the issue of aluminum overcapacity – a problem Beijing created. Over the past six years, using massive government subsidies, China quickly ramped up capacity to become the largest aluminum producer in the world.

China can’t be trusted on this because it never keeps its promises. It has never cut its steelmaking capacity after announcing again and again that it would.

In negotiations two weeks ago, Trump cabinet members could not even get a specific commitment out of China to do it. There’s no evidence China will stop overproducing steel or aluminum now. Waiting is useless. And destructive to American manufacturing.

The American steel and aluminum industries have fought back, filing and winning dozens of trade cases against imports of specific products. But the resulting tariffs and other penalties imposed by the U.S. Commerce Department and U.S. International Trade Commission (ITC) didn’t solve the problem.

Instead of paying U.S. tariffs, China shipped its government-supported excess of these products to other countries, artificially suppressing world prices and warping what is supposed to be a free market.

Also, this traditional process for seeking relief from unfair trade takes too long. More than a year may elapse before companies and workers get a final decision. And that will be for just one product, like aluminum extrusions, aluminum foil, welded stainless steel pressure pipe or corrosion-resistant steel, to name a tiny number of cases from recent years.

That’s part of what made the special investigations into steel and aluminum imports so attractive. If the U.S. Commerce Department determined under Section 232 of the Trade Expansion Act of 1962 that imports of steel and aluminum jeopardized national security, then the president could impose penalties broadly to ensure the country could meet its own needs. The effort might also spur allies to join the United States in finally pressuring China sufficiently to actually reduce capacity.

Although Section 232 allows for nine months of investigation, after which the President would have three months to determine a remedy, the administration promised quick action when it announced the inquiries in April. The steel report was to be completed by June 30, with a speedy decision by the president after that.

That suggested the administration understood this was urgent.

But June 30 came and went. Now there’s an official delay. The administration told the Wall Street Journal that the steel investigation is on hold until after health care reform, tax changes and infrastructure spending are accomplished.  “We don’t want to do it at this moment,” the president said last week of the steel case.

That’s devastating. Especially because steel imports have jumped 22 percent since Jan. 1, placing additional pressure on the American industry.

The delay occurs as efforts are made by a new company to reopen at least one potline at an aluminum smelter in New Madrid, Mo., that the now-bankrupt Noranda company idled last year. Postponing the Section 232 decision makes for uncertainty for these investors.

It also occurs as a Chinese company is trying to buy Aleris, an Ohio-based manufacturer that supplies aluminum for use in vital infrastructure and military applications. That Asian firm, China Zhongwang, is accused of dodging tariffs and is under civil and criminal investigation for possible smuggling, conspiracy and wire fraud by the Justice Department, Department of Homeland Security and Commerce Department.

Maybe the Aleris smelters would keep operating if China Zhongwang bought them, but at what risk to national security?

The delay occurs as companies that buy steel fear monger that tariffs or quotas would raise prices.

An expert, Stephen Koplan, chairman of the U.S. ITC under Presidents Bill Clinton and George W. Bush, says that’s hogwash. “Predictions of disaster were wrong 15 years ago when I chaired the ITC, and they are wrong again today,” he wrote in an op-ed in The Hill newspaper last week.

When President George W. Bush imposed tariffs and quotas on steel imports under Section 201 of the Trade Act of 1974, there was no price shock afterward, according to a study by the nonpartisan U.S. ITC.  Here is what Koplan, who also served as an attorney at the Small Business Administration, wrote:

“Downstream industries were not devastated by higher steel prices. Nor was the U.S. economy thrown into depression. The U.S. steel industry, however, earned a much-needed relief as the result of action taken by the president that allowed it to restructure and reinvest for the long term. In other words, the Section 201 measures worked as intended.

“We are facing similar challenges again today. . .Now, however, U.S. national security is at great risk if firm action is not taken immediately. The U.S. primary aluminum industry is on the verge of disappearing entirely, and the U.S. steel industry is not far behind.”

AK Steel Corp. CEO Roger Newport agreed with Koplan’s assessment that this is not a time for dawdling, telling the Commerce Department in his testimony on the steel case:

“High-end electrical steel is an incredibly difficult product to manufacture, as it requires a significant amount of dedicated, capital equipment and a sophisticated, well-trained workforce.

Therefore, if AK Steel were to exit the market, there would be no operational electrical steel manufacturing equipment in the United States, the specialized labor and related expertise in operations would be lost, and many of AK Steel’s talented operators and researchers would either relocate to other businesses, industries and/or foreign countries, or become unemployed.”

Workers’ and companies’ economic security is at risk. The nation’s security is at risk. Resolution of these cases should be speeded, not delayed.

This blog was originally published at OurFuture.org on July 31, 2017. Reprinted with permission.

About the Author: Leo Gerard is the president of the United Steelworkers International union, part of the AFL-CIO

Trump has bad news for millions of workers in line for overtime pay under Obama

Friday, July 28th, 2017

Donald Trump’s major life goal at this point seems to be rolling back everything good President Barack Obama did for the country and its people—and now he’s coming for your overtime pay. Obama had sought to raise the overtime eligibility threshold to include millions more workers, a change that was supposed to go into effect in December but was blocked at the last minute by a judge. Now, of course—of course—Mr. Populist is rolling back Obama’s expansion. Trump’s Labor Department announced Tuesday that it would be doing something to the overtime eligibility threshold, but it’s not clear what, and they’re definitely not going to be raising the threshold to $47,000 like Obama proposed.

In the final days of the Obama administration, the Labor Department had appealed the judge’s decision blocking implementation of the raise, and Trump’s Labor Department agreed in court that it has the power to set the eligibility threshold. But Labor Secretary Alexander Acosta plans to use that power in a very different way than Tom Perez did under Obama:

On Tuesday, the department said in light of the pending appeal, it decided to issue a request for comments rather than skip immediately to rescinding or revising the rule.

The agency asked for input on whether the current threshold of $23,660 set in 2004 should be updated for inflation, and whether there should be multiple levels based on region, employer size, industry or other factors. […]

The department also asked employers to explain how they prepared for the rule to take effect and whether it has had an outsize impact on small businesses and particular industries.

The department said it was considering eliminating the salary threshold, leaving overtime eligibility to be based on workers’ job duties.

Mind you, the Obama administration already had a lengthy comment period and took 300,000 comments. But we know the Trump regime will be listening to comments from one set of people in particular: bosses who want to exploit their workers.

This blog was originally published at DailyKos by Laura Clawson on July 26, 2017. Reprinted with permission.

About the Author: Laura Clawson is labor editor at DailyKos.

As Media Focuses on Russia Collusion, Trump Is Quietly Stacking the Labor Board with Union Busters

Thursday, July 20th, 2017

It might not get as much press coverage as other Donald Trump administration calamities, but the U.S. president is set to appoint a known union buster to the National Labor Relations Board (NLRB), push the body to a Republican majority and reverse Obama-era protections that rankle Big Business.

On July 13, the Senate Health, Education, Labor and Pensions (HELP) Committee held hearings on Trump’s two NLRB selections and his deputy labor secretary pick. All three of these men are expected to be confirmed.

William Emanuel, one of Trump’s NLRB appointees, is a management-side attorney and a member of the conservative Federalist Society. He is also a shareholder of Littler Mendelson, an infamous union busting firmthat was most recently brought in by Long Island beer distributor Clare Rose to negotiate a contract full of pay cuts.

After being selected, Emanuel disclosed 49 former clients and declared he would recuse himself for up to a year if any of the companies found themselves in front of the NLRB. The list included multiple businesses that have clashed with the labor board, including JPMorgan Chase Bank, MasTec Inc, Nissan and Uber.

Uber’s ongoing skirmishes with the NLRB have, perhaps, been the most publicized. At the end of 2016, the ride-share company battled with the NLRB after the agency sent out subpoenas aimed at gleaning information about whether Uber drivers were statutory employees.

In 2016, Emanuel authored an amicus brief that defended class-action waivers in employment contracts. Workers often depend on class actions to fight sexual and racial discrimination, and their existence is an important part of upholding wage laws. The NLRB ruled that such waivers were illegal under Obama.

Emanuel was asked about Littler Mendelson’s anti-union work by Massachusetts Senator Elizabeth Warren. “You have spent your career at one of the country’s most ruthless, union-busting law firms in the country,” she said. “How can Americans trust you will protect workers’ rights when you’ve spent 40 years fighting against them?”

In response, Emanuel claimed that he would be objective whenever making decisions for the agency.

Emanuel is not the only appointee raising concern among workers’ rights advocates. Marvin Kaplan, another Trump nominee to the NLRB, is a public-sector attorney and current counsel to the commissioner for the Occupational Safety and Health Review Commission. The Kaplan pick excites business executives and their advocates, who envisioned him helping overturn Obama-era labor regulations.

At the time of the announcement, Kristen Swearingen, chair of the anti-union group Coalition for a Democratic Workplace, declared that “Marvin Kaplan will begin to restore balance to an agency whose recent and radical decisions and disregard for long standing precedent have injected uncertainty into labor relations to the detriment of employees, employers and the economy.”

The excitement is well-founded. Kaplan served as counsel for Republicans on the House Committee on Education and the Workforce. The New York Times reports, “The committee held hearings during his tenure scrutinizing prominent NLRB actions in which the witnesses skewed toward business representatives and other skeptics.” Kaplan also helped develop the The Workforce Democracy and Fairness Act, legislation that would kill a labor board rule that shortened the amount of time between when the board authorizes a workplace unionization vote and when the vote actually takes place. Since 2014, the number has been set at 11 days. But this act would increase it to at least 35, thus allowing more time for union efforts to be squashed. The legislation hasn’t passed in congress yet.

Concerns do not stop at the NLRB. Trump’s Labor Department nominee is Patrick Pizzella, a Federal Labor Relations Authority Member who was grilled by Minnesota Senator Al Franken on his ties to the infamous lobbyist Jack Abramoff. Pizzella worked with Abramoff during the 1990s to exempt the Northern Mariana Islands from federal labor regulations.

The Senate has only been in session for 10 days since the Pizzella and Kaplan nominations, and only four days since Emanuel’s. A group of civil rights and labor organizations sent the committee a letterasking for the hearings to be postponed. During her opening remarks, Sen. Patty Murray called Trump’s attempt to jam through the nominees without proper oversight “unprecedented.”

Roughly 10 workers representing the pro-labor organization Good Jobs Nation stood up during Thursday’s hearing, put blue tape over their mouths and walked out of the room in silent protest. Groups like Good Jobs Nation are concerned about a pro-business majority in the agency amidst Trump’s proposed cutsto the Labor Department.

Trump is putting the NLRB in the position to undo a number of important Obama-era labor decisions. His NLRB could potentially reverse rulings that made it easier for small groups of workers to unionize, established grad students as employees, put charter school employees under NLRB jurisdiction, and held parent companies jointly liable for with franchise operators who break labor laws. Writing about the imminent anti-union crackdown on this website in May, Shaun Richman wrote, “Unions and their allies should be convening research teams to plot out a campaign of regulatory and judicial activism. That work should begin now.”

Early in the hearing, Washington Senator Patty Murray asked Emanuel if he had ever represented a union or a worker. Emanuel explained that he worked exclusively for management for his entire career. “You just don’t do both,” he told her. “It’s not feasible.”

This piece was originally published at In These Times on July 14, 2017. Reprinted with permission.

About the Author: Michael Arria covers labor and social movements. Follow him on Twitter: @michaelarria

The Fiscal Myth That’s Killing The Economy, In 7 Steps

Saturday, August 13th, 2016

RichardEskowA new economic working paper reinforces an important reality: We need more government spending to repair the economy for millions of working Americans. Unfortunately, our political debate is being held back by an economic myth – one that has yet to be challenged in political debate, despite an ever-growing body of evidence against it.

The paper, by L. John Bivens of the Economic Policy Institute, is called “Why is recovery taking so long – and who’s to blame?

The myth is called “austerity,” and it can be roughly defined as “the persistent but false belief that government spending cuts are always a good idea.”

Here are seven things about austerity worth knowing:

1. Our current recovery is too slow, and isn’t reaching everybody it should.

As Bivens points out, employment took longer to reach its pre-recession levels this time around than it did in the previous three recovery periods. Perhaps even more significantly, the rate of job creation remained slower after the recession officially ended.

What’s more, the jobs created after the 2009 crisis were weighted heavily toward lower-income professions. Labor force participation for people of working age remains low, even though it has improved somewhat.

And, as the Center for Economic and Policy Research recently reported, the percentage of people who are involuntarily working part-time rather than full-time is 25 percent higher now than it was before the recession.

As CEPR’s Nick Buffie notes, “Over 6 million people are working part-time involuntarily, and on average they work 23 hours per week. Because full-time workers are typically employed 42–43 hours per week, this is effectively a wage cut of almost 50 percent for the affected workers.”

2. The weak recovery affects a lot of full-time workers.

It is not just the unemployed and underemployed who are affected by the weak recovery. Many full-time workers are earning less than they would be if the economy had rebounded at a faster pace, creating more and better jobs than it has.

The American middle class needs a raise. But millions of people won’t get their raises until the economy is stronger and the demand for workers goes up. And demand will remain low until there are more jobs to fill.

3. We know what to do about it.

Government has two tools at its disposal in situations like this: monetary policy and fiscal policy. Monetary policy was promptly deployed after the latest crisis, both to bail out Wall Street and to improve the overall economy. The Federal Reserve should have been more attentive to the Main Street economy, using some of the creativity it used to rescue the financial sector, but it did cut interest rates and that helped.

Unfortunately, fiscal policy, in the form of job-creating government spending initiatives, was used only sparingly at the federal level. Over the past seven years there have been spending cuts at the federal, state and local levels. That’s the opposite of what’s needed, especially in an economy like this one.

As Bivens points out, it’s necessary to increase demand under conditions like those we see today. A simplistic overview of the process: The government creates jobs, the people who get those jobs spend more, the economy’s “pump” is primed and growth follows.

We aren’t talking about radical, far-left ideas here. This approach has been mainstream economic thinking for many decades, and was successfully applied under Democratic and Republican administrations alike.

4. We relied on the myth of austerity instead.

But recent years have seen the rise of different ideas – ideas that were tended and nurtured by right-wing institutions like the Peterson Foundation, and by conservative economic thinkers too numerous to mention. “Austerity economics” – the belief that governments can cut their way to growth – became conventional thinking in the halls of academe and the halls of power. It is obsessed with deficit spending, to the exclusion of other concerns that are often more pressing.

Austerity-driven cuts have hurt the U.S. economy. Austerity’s done even more damage in Europe. When the global financial crisis of 2008 struck, multilateral decision-makers (including the European Central Bank and the International Monetary Fund, or IMF) imposed a harsh austerity regimen on Greece and other struggling European economies. The result, as we now know, was disastrous.

To its credit, the IMF conducted an internal review of its actions during this period. The report found that IMF officials ignored a number of warning signs and had a “strongly optimistic bias” about the effects of austerity. The report also agreed with an earlier investigation that found “a high degree of groupthink, intellectual capture … and incomplete analytical approaches.”

That’s pretty much what happened here, too.

The crisis of 2008, and the events that followed, disproved austerity economics and other hallmarks of conservative economic thought. But it remains popular in powerful circles – perhaps because, as Upton Sinclair said (in the gendered language of his time): “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

5. It’s mostly a Republican problem …

Despite ample evidence to the contrary, Republicans remain steadfast in their opposition to government spending – even for government jobs like teaching, firefighting, and emergency management.

As Bivens explains:

“We are enduring one of the slowest economic recoveries in recent history, and the pace can be entirely explained by the fiscal austerity, particularly with regard to spending, imposed by Republican policymakers, members of Congress primarily but also legislators and governors at the state level.”

The Republican Congress can even take much of the blame for state-level spending cuts, since transfers from the federal government account for more than 20 percent of state and local spending.

Bad economies aren’t an act of God. They are a result of human action – or inaction.

6. … but a lot of Democrats have bought into the myth, too.

A number of top Democrats echoed the rhetoric of austerity, too. That led to weaker political support for the spending we needed, and probably clouded the judgment of Democratic leaders when it came time to make the case for needed spending increases.

President Obama spent far too much time fighting for a “grand bargain” on spending with congressional Republicans that was rooted in austerity thinking, and too little time challenging that thinking. He also had the habit, especially in his first term, of echoing the false economic tropes of the austerity crowd by saying things like “just like every family in America … the Federal government has to live within its means …”

National budgets don’t work like family budgets at all – that is, unless the family in question issues its own sovereign currency.

There are strong hints of austerity-oriented thinking in Hillary Clinton’s rhetoric, too. That puts her at odds with enthusiastic backer Paul Krugman, who wielded a poison pen on her behalf during the Democratic primaries but is currently making the case for borrowing and spending.

Austerity thinking was highlighted at last month’s Democratic National Convention when Gene Sperling, a senior economic advisor to former presidents Clinton and Obama, was featured in a humor-oriented anti-Trump video produced by “Funny or Die.” Whether or not hilarity ensues must remain a matter of personal opinion, but the video clearly relies on austerity economics – specifically, an exaggerated fear of deficits – to scare viewers.

There has never been a better time for the federal government to borrow money and invest in the economy. It can obtain very low interest rates, the economy would respond very well to job creation, and we urgently need to spend money on repairing and expanding our national infrastructure. (The American Society of Civil Engineers says we need to spend $3.6 trillion by 2020.)

7. We need a national debate about austerity economics.

Hillary Clinton has proposed modest levels of infrastructure investment and other government spending – modest, but better than nothing. President Obama put forward similar spending proposals. But these proposals suffer from a fatal flaw that renders them useless in today’s climate: They’re too large to get past the Republicans in Congress and too small to change the political debate.

Democrats have not directly challenged Republicans on government’s proper role in the economy. Too often, they have tried to co-opt the rhetoric (and sometimes the policies) of austerity instead.

Republicans, on the other hand, offer a clearly articulated and internally coherent (if utterly fallacious) economic perspective. Democrats can also offer a coherent perspective, too – one with the added advantage of having been proven by experience. That perspective can make life better for millions of people.

This is the economic debate this country needs. But we won’t get it until someone challenges austerity economics and the conservative philosophy behind it – directly, unambiguously and fearlessly.

This article originally appeared at Ourfuture.org on August 12, 2016. Reprinted with permission.

Richard Eskow is a Senior Fellow with the Campaign for America’s Future and the host of The Zero Hour, a weekly program of news, interviews, and commentary on We Act Radio The Zero Hour is syndicated nationally and is available as a podcast on iTunes. Richard has been a consultant, public policy advisor, and health executive in health financing and social insurance. He was cited as one of “fifty of the world’s leading futurologists” in “The Rough Guide to the Future,” which highlighted his long-range forecasts on health care, evolution, technology, and economic equality. Richard’s writing has been published in print and online. He has also been anthologized three times in book form for “Best Buddhist Writing of the Year.”

Union Summer Hits the Doors After Learning Lessons in Solidarity and the Spirit of the South

Monday, July 4th, 2016

FullSizeRenderUnion Summer, the cadre of young activists that is training to be the future leaders and union organizers of the labor movement, are hitting the doors hard. After a couple of weeks on the ground, Summeristas have spoken with 300 people one-on-one and engaged 100 of them to commit to forming a union.

Forty students from 25 different colleges and universities are organizing across five major cities in the South, including Atlanta; Anniston, Ala.; Tuscaloosa, Ala.; Jackson, Miss.; and Houston. They are working with AFSCME, IUE-CWA, MASE-CWA, RWDSU, Texas AFT, and UAW.

During their orientation in Jackson, Miss., Summeristas learned how to engage working people on what matters most to them, as well as encourage them to come together to collectively make changes in the workplace.

Michael Gordon says the field training with local working people in hospitality was his favorite part, “I got my first card signed and what really connected me to the worker was when we switched gears from talking about the job to talking about his family.”

This year Union Summer is taking over the South.

As corporations keep coming to the South to exploit cheap labor, Union Summer takes on the South to help build solidarity!

AFL-CIO Executive Vice President Tefere Gebre, who has been one of the biggest advocates of organizing the South, shared with the interns, “Activism is when we take action of any kind to change a situation that is unjust or unfair… and solidarity is when a whole lot of us take action together. Nothing is more powerful.”

That’s why the Union Summer program is building capacity and leadership by directly recruiting and training young activists from the region, as well as placing them on important strategic campaigns.

While Summeristas learned about how to help build unions of working people and solidarity in the workplace, they also grappled with tragedy and committed to solidarity across borders and across movements.

Union Summer in Solidarity with Orlando

In the first week of Union Summer, 50 lives were tragically cut short in a shooting at the Pulse night club in Orlando. Jeremy Wells from Pride at Work took the time to help interns process their emotions.

Wells also noted how three of the most stigmatized groups were intermingled in this terrible tragedy. LGBTQ lives lost during Pride. Latino lives lost amidst racist rhetoric on immigration. Muslim people living in fear of violence as millions fasted around the world for Ramadan.

Annette Hall says she found herself right at home in this diverse cohort of young people with different backgrounds yet with the same passion for activism and championing causes of marginalized groups. “The Orlando nightclub shooting on Latin night struck a chord with all the interns on some level. However, I have never been prouder as a queer woman of color as I stood in solidarity with my fellow interns behind the banner we made for Orlando.”

Eryn Scott had concerns about traveling to a not-so-LGBTQ-friendly Mississippi. “As a queer woman of color who often experiences intersectional oppression, I cannot begin to express how important this safe space is to me. I am grateful to work with so many fiery young minds who truly want to contribute to the movement.”

Megan Jordan was also moved. “I lost a friend [who worked on a military base] to gun violence at the hands of someone found to be mentally ill. It’s important that at Union Summer we are talking about real topics that matter right now. I was also really impacted by Harvest of an Empire on Latin America and how the U.S. government affected labor and deaths, the racism, and the terrible working conditions.”

Gordon agrees, “Now I understand what the phrase means ‘We didn’t cross the border, the border crossed us.’ It opens your eyes on why unions are important around the world.”

Learn more about Union Summer or like us on Facebook!

This blog originally appeared in aflcio.org on June 30, 2016. Reprinted with permission.

Sonia Huq is the Organizing Field Communications Assistant at the AFL-CIO.  She grew up in a Bangladeshi-American family in Boca Raton, Florida where she first learned a model of service based on serving a connected immigrant cultural community. After graduating from the University of Florida, Sonia served in the AmeriCorps National Civilian Community Corps and later worked for Manavi, the first South Asian women’s rights organization in the United States. She then earned her Master’s in Public Policy from the George Washington University and was awarded a Women’s Policy Inc. fellowship for women in public policy to work as a legislative fellow in the office of Representative Debbie Wasserman (FL-23). Sonia is passionate about working towards a more just society and hopes to highlight social justice issues and movements through her writing.

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