Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘free trade agreement’

Trading Rules for Workers

Wednesday, March 1st, 2017

President Donald Trump met with a bunch of CEOs at the White House last week, prompting the same old, tired and untrue round of assertions that America lost millions of manufacturing jobs because of automation, regulation, illegal immigration and lack of education.

The real culprit is globalization – fostered by a series of bad trade deals. That’s not what the CEOs talked about, though, mainly because a huge portion of them already have moved factories from America to low-wage, high-pollution countries.

Bad trade is, however, what President Trump talked about constantly on the campaign trail. He repeatedly assured cheering crowds he would stop corporations from offshoring factories. A new report from the Information Technology & Innovation Foundation proves his diagnosis was right – bad trade caused the vast majority of the job losses. He was right when he said the proposed Trans-Pacific Partnership (TPP) trade deal and NAFTA had to go. Offshoring CEOs are trying to bamboozle the administration about the cause of job loss to prevent President Trump from keeping his promises to industrial workers.

And those CEOs are wrong about automation. Robots didn’t do it. They didn’t kill 5.7 million manufacturing jobs between 2000 and 2010. That’s the bottom line in research published this month by Adams Nager, an economic policy analyst for the Information Technology & Innovation Foundation and in another report by economists Lawrence Mishel and Heidi Shierholz of the Economic Policy Institute.

If robots were responsible, then manufacturing productivity would have grown substantially during that period, as fewer people would have been needed to perform the same work. But that didn’t happen. Manufacturing productivity actually declined. It was 25.8 percent in the 1990s and dropped slightly to 22.7 percent between 2000 and 2010.

During that decade of lower productivity, manufacturing job losses were 10 times greater than during the 1990s. Those massive losses could be attributed to robots only if productivity had risen dramatically.

Mishel and Shierholz put it this way in their report: “We need to give the robot scare a rest. Robots are not leading to mass joblessness and are not the cause of wage stagnation or growing wage inequality.”

Undocumented immigrants didn’t take those lost manufacturing jobs either. Those jobs disappeared from the United States. No one in America has them, documented or undocumented. In addition, the vast majority of undocumented aliens work in low-paid agricultural, cleaning and food service jobs, and their share of the work force has declined since 2007, according to the Pew Research Center.

Regulation-kills-jobs is another trope CEOs cite incessantly. They brought it up again in their meeting Thursday with President Trump. They want to neglect their duty to protect air and water from toxic industrial pollutants. They want to disregard the health and safety protections established to prevent workers from dying on the job or from job-induced illnesses. And they certainly want to ignore the safeguards that enable workers to organize and collectively bargain for better wages, benefits and working conditions.

The government, they contend for example, has no right to oversee corporate use of toxic chemicals that can kill workers and neighboring community members because those protections cut into profitability. To CEOs, it’s always profits before people.

In addition, CEOs say American workers are just too stupid to work in manufacturing. Some CEOs told Trump there are hundreds of factory job openings, but not enough qualified workers to fill them.

One CEO complained, for example, that most high school graduates lack the math and English skills necessary for his company’s apprenticeship.

These CEOs didn’t offer to provide the remedial skills. They didn’t step forward to pay for the training they say workers don’t have. They want the government – that is taxpayers – to foot the bill. That is the same taxpayers who CEOs say should not get government protection from toxic manufacturing chemicals.

If CEOs would raise the pay for manufacturing work, more workers might be willing to invest in training themselves. Most of those high school graduates who the CEOs derided possess sufficient math skills to perform the cost-benefit analysis on self-training. They have figured out that paying $25,000 to $100,000 in tuition to a technical school to get a low-pay, no-benefits job that a corporation may ship offshore at any time does not add up.

Still, the CEOs called American workers stupid.

These workers, unlike the CEOs, know the truth. They know what killed their jobs. It was bad trade deals and violations by exporting countries like China. They saw the likes of Carrier, Caterpillar and Dana, whose CEOs attended Trump’s manufacturing meeting Thursday, close American factories and open them in other countries. They know that many countries, but particularly China, disregard international trade regulations then dump artificially underpriced products on the American market, killing U.S. manufacturing jobs.

The Information Technology & Innovation Foundation study provides the statistics to back up workers’ experience. “It is important to recognize how global competition contributed to upwards to two-thirds of the manufacturing jobs lost from 2000 to 2010,” the author Adam Nager, wrote. During that time, he said, “China ramped up its mercantilist policies – from currency manipulation to forced intellectual property transfers and government subsidies – all of which hurt U.S. manufacturing employment.” All of which also violate trade rules.

The day after his meeting with CEOs, President Trump repeated the promise he made many times on the campaign trail: “the forgotten men and women of America will be forgotten no more.” This was compelling to manufacturing workers who had lost their jobs and felt their plight was ignored.

But these workers know from bitter experience that CEOs don’t have their best interests in mind. They know the problem with the TPP and NAFTA is that they were drafted by CEOs for the benefit of CEOs and 1 percenter shareholders. Workers never got an equal seat at the negotiating tables.

They know that Donald Trump listened to 24 CEOs on Thursday but not one manufacturing worker.

Just like with TPP and NAFTA, it matters who is giving advice. Just like with bogus trickle-down economics, the advice given by CEOs doesn’t trickle down to benefit workers on the line. It only bubbles up to line executives’ pockets.

Workers need a seat at the table when the new rules for trade and restoring American manufacturing are written.

This post originally appeared on ourfuture.org on February 28, 2017. Reprinted with Permission.

Leo Gerard is the president of the United Steelworkers International union, part of the AFL-CIO. Gerard, the second Canadian to lead the union, started working at Inco’s nickel smelter in Sudbury, Ontario at age 18. For more information about Gerard, visit usw.org.

Senate Votes To Fast-Track Jobs Out, More Corporate Power In

Wednesday, June 24th, 2015

Isaiah J. PooleA majority in the Senate today took sides against working families and with Wall Street and the multinationals, voting 60-37 to grant the executive branch fast-track trade promotion authority for the Trans-Pacific Partnership and future trade deals.

“This is a day of celebration in the corporate suites to be sure,” said Sen. Sherrod Brown (D-Ohio) on the floor immediately after the vote, “because they have another corporate-sponsored trade agreement that will mean more money in some investors’ pockets, that will mean more plant closings in Ohio and Arizona and Delaware and Rhode Island and West Virginia and Maine and all over this country.”

Sen. Bernie Sanders (I-Vt.) responded by noting that the fast-track legislation “was supported by virtually every major corporation in the country” while it was opposed by “every union in this country working for the best interests of working families, by almost every environmental group and many religious groups.

“In my view, this trade agreement will continue the policies of NAFTA, CAFTA (the North American and Central American free trade agreements), permanent normal trade relations with China, agreements that have cost us millions of decent-paying jobs,” Sanders said.

The fast-track legislation, which was narrowly passed by the House last week and now goes to President Obama’s desk for his signature, was passed with the support of these Senate Democrats: Michael Bennet (D-Colo), Maria Cantwell (D-Wash.), Thomas R. Carper (D-Del.), Chris Coons (D-Del.), Dianne Feinstein (D-Calif.), Heidi Heitkamp (D-N.D.), Tim Kaine (D-Va.), Claire McCaskill (D-Mo.), Patty Murray (D-Wash.), Bill Nelson (D-Fla.), Jeanne Shaheen (D-N.H.), Mark Warner (D-Va.) and Ron Wyden (D-Ore.).

One of the Democrats who voted against fast-track gave an impassioned explanation of his vote afterward.

“I’ve said this –if I can’t explain it back home, I can’t vote for it,” said Sen. Joe Manchin (D-W.Va.) “This is one, Mr. President, I could not explain back home. I could not make the people feel comfortable this was going to improve the quality of life and opportunities for them and their families.”

Manchin explained that the Trans-Pacific Partnership would lower trade barriers with countries such as Vietnam, where workers make as little as 50 cents an hour and “are not going to be as tough as we are in human rights [and] on environmental quality.”

In this debate, there were Orwellian big lies on both sides of the aisle.

Wyden argued that the trade deal represented a different frame from the NAFTA deal of the 1990s. That is in no sense true: the template that makes worker needs subordinate to interests of corporate and financial interests is essentially the same, the process of having corporate lobbyists dominate the negotiations is the same, and the people serving as trade representative come from and represent the same set of interests (corporate lawyer Mickey Kantor was the trade representative who negotiated NAFTA; former Citigroup executive Michael Froman is the trade representative leading the TPP talks).

Sen. Orrin Hatch (R-Utah) and other Republicans argued that the fast-track deal gives the United States a voice in international trade. How can that be, when in fact fast-track authorizes a process that gives away congressional power? Fast track explicitly says that Congress can only vote up or down, with no amendments and limited debate, on a trade agreement negotiated by the executive branch. The reality is that the process assures passage of a trade deal that is still being negotiated in secret and which virtually no lawmakers have seen.

Democratic votes in favor of fast track were secured with a promise of a vote later this week on trade adjustment assistance, a palliative at best. While that will help some workers who will lose their jobs one the Trans-Pacific Partnership goes into force, it will not help workers who lose wages and bargaining power when corporations threaten to move overseas, and it doesn’t help the workers hit by the ripple effects of plant closings and outsourcing. Even the workers who do get the aid more often than not don’t get back the wages and job security they lost in the first place because of unfair trade.

Robert Borosage, codirector of the Campaign for America’s Future, said that today’s vote “is a vote to continue the ruinous trade policies of the last decades that have racked up 11 trillion in trade deficits, shuttered tens of thousands of factories, and had direct and dramatic effect on undermining the middle class, and lowering wages and security for working people. Those who voted for it voted for more of the same. And they did so to serve the interests of special interests, not the common good; of contributors, not voters.”

Our allies at National People’s Action released a statement after the vote that perhaps captures best how to respond to this vote. “Coming out of this vote,” said executive director George Goehl, “we double our resolve to build an independent political movement to replace Wall Street Democrats” – and we would add corporate and anti-worker Republicans – “with politicians who put everyday people before corporate profits.”

This blog was originally posted on Our Future on June 23, 2015. Reprinted with permission.

About the Author: The author’s name is Isaiah J. Poole. Isaiah J. Poole has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.

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