Corporations Win on Fast Track

United States Capitol, Washington, D.C., east ...

United States Capitol, Washington, D.C., east front elevation (Photo credit: Wikipedia)

Fast track passes. Our Congress – the supposed representatives of We the People – voted to cut themselves and us out of the process of deciding what “the rules” for doing business “in the 21st Century” will be.

How do the plutocrats and oligarchs and their giant multinational corporations get what they want when a pesky democracy is in their way? They push that pesky democracy out of their way.

Because of fast track, when the secret Trans-Pacific Partnership (TPP) and any other secretly negotiated “trade” agreements are completed Congress must vote in a hurry with only limited debate, cannot make any amendments no matter what is in the agreement, and they can’t be filibustered. Nothing else coming before our Congress gets that kind of skid-greasing, only corporate-written “trade” agreements – and it doesn’t matter how far the contents go beyond actual “trade.” Continue reading

A Trade Deal at What Cost ?

HaroldMeyersonAIDHarold Meyerson.

So what gives with the American people? Don’t they realize, as my colleague Charles Krauthammer argued last week, “that free trade is advantageous to both sides”?

The sides to which Krauthammer referred, of course, are nations. But perhaps those who’ve experienced such free-trade consequences as factory closings and lower-paying jobs are thinking about two entirely different sides — capital and labor. Trade promoters cite David Ricardo’s 200-year-old assessments of trade’s benefits to nations, but skeptics can mine a rich vein of mainstream economics that demonstrates how trade deals can, and frequently do, benefit major investors at workers’ expense.

As a letter to The Post noted this week, future Nobel laureate Paul Samuelson wrote in 1955 that, under free trade, “national product would go up, but the relative and absolute share of labor might go down.” More pointedly still, another Nobel laureate, Bertil Ohlin, showed that as a result of trade, a nation’s workers could see their wages decline even if none of them lost their jobs.

Samuelson and Ohlin have been proved right. Increased trade with lower-wage nations over the past 30 years has resulted in both massive offshoring of manufacturing and wage decline for most U.S. workers. As economists David Autor, David Dorn and Gordon Hanson have demonstrated, Chinese import competition has lowered wages not just for displaced manufacturing workers in this country but also, on average, for all workers in their midst. Continue reading

LA Advances Toward $15 Minimum Wage

by Bobbi Murray

raisewagecityhall4Fair wage advocates won a big victory Tuesday, when the Los Angeles City Council voted 14-1 to advance a measure that would gradually boost the base pay in the City of Los Angeles to $15 an hour by 2020. City Attorney Mike Feuer will now be asked to draft a minimum-wage ordinance that the council will vote upon to make the measure law.
The legislation begins by raising the current wage of $9 an hour to $10.50 in July of 2016—after that the hourly wage would go up each year by one dollar. The vote could lead to making Los Angeles the largest city in the nation to set a minimum wage standard above the federal level, one that will benefit some 600,000 employees in the city—some 40 percent of L.A.’s workforce. The decision also adds heft and momentum to efforts nationally to raise the minimum wage for the nation’s lowest-paid workers.
“That will be fantastic,” says Dan Flaming, president of Los Angeles’ Economic Roundtable, a nonprofit policy research group. “Our cost of living is 37 percent higher than the national average. We’re a low-wage city with a high cost of living.” The United States, with an hourly federal minimum of $7.25, ranks 11th out of the 27 countries in the developed world that set a minimum wage standard. The U.S. minimum wage makes for an hourly take-home pay of $6.25. Continue reading

Bernie Sanders is a Thoroughbred

Senator Bernie Sanders   Photo by Don Shall

Senator Bernie Sanders Photo by Don Shall

Bernie Sanders is a thoroughbred—why call him a stalking horse?

by Michael Hirsch

Voltaire wrote that “the best is the enemy of the good,” but he cited it as a foible and not a redeeming practice.  Within hours of Bernie Sanders announcing his candidacy for the Democratic Party presidential nod on April 30th, in some warrens of the radical left, the long corrective knives were already out for the only socialist in Congress. Why? Because Bernie is just not good enough, they said. Criticism ranged from his being a faux socialist, a stalking horse for Hillary Clinton whose backing by the left would be a practical waste of a year that could be better spent building a movement. Politicking for a candidate who can’t win the nomination and who would be destroyed by corporate America and an avalanche of corporate funding if somehow he did was seen as a mug’s game.

They would be wrong.

Take this example: in his incisive report on the recent Future of the
Left/Independent Politics Conference in Chicago, Dan La Botz cites remarks made by Bruce Dixon of the Georgia Green Party to the effect that “Sanders is a sheep dog whose job is like that of the Rev. Jesse Jackson and Congressman Dennis Kucinich in earlier elections, to round up folks who had strayed to the left in response to the Democratic Party’s retrograde domestic and foreign policies and to bring them back to the Party.” At least Dixon didn’t say Judas goat, leading lambs to the slaughter, but it’s still early in the campaign, and the cat-scratch phase hasn’t kicked in yet.

Another group that would at first blush seem natural allies of the insurgent Sanders is organized labor. Despite favorable coverage of him  in AFL-CIO Now , the website of the national labor federation, reporting on his role at a recent anti-TPP rally in Washington, D.C. and his remarks on the U.S. Senate floor against the job-swallowing trade bill and the slight-of-hand that would fast-track a vote on legislation no one has even seen, neither the national federation nor its 56 constituent unions are even hinting that Sanders could be their man. While there is considerable support for Sanders among middle-level union staff, that won’t be–and never is–enough to cinch an endorsement. AFL-CIO President Richard Trumka has said that the beating Democrats took last fall during the midterm elections was due to the fact that labor issues–specifically  economic issues close to workers’ hearts–were not foremost in almost any campaign. Now Trumka and the others have a chance to correct that blunder by backing a presidential candidate who reflects and expands on their economic views. Will they do it? Or will they make a Christmas peace with their class enemy again. We’ll know by December.   Continue reading

Nike supports TPP. Here is why

Leo Gerard

America is in an abusive relationship with trade-obsessed politicians and corporations.

Despite their long history of battering the U.S. middle class with bad trade deal after bad trade deal, these lawmakers and CEOs contend workers should believe that their new proposal, the Trans-Pacific Partnership (TPP), will be different. President Obama and the CEO of Nike, a company that doesn’t manufacture one shoe in the United States, got together in Oregon on Friday to urge Americans to fall once again for a trade deal.

The trade fanatics say everything will be different under the TPP – even though it is based on deals like the North American Free Trade Agreement (NAFTA) that lured American factories across the border, destroyed good-paying jobs and devastated communities. They plead: “Just come back for one more deal and see how great it will be this time!” And, like all batterers, they say: “Sorry about the terrible past; trust me about the future.”

This is trade abuse.

United Steelworkers of America.

At the Nike world headquarters in Beaverton, Ore., the chief executive officer of Air Jordans told the chief executive passenger of Air Force One that Americans should believe in the TPP because it’ll be like Santa Claus stuffing jobs down chimneys across America.

CEO Mark Parker promised that the TPP would miraculously prompt Nike, the brand that is the icon for shipping production overseas, to create 10,000 U.S. manufacturing and engineering jobs – over a decade, that is.  Not only that, Parker pronounced, the TPP will generate thousands of construction jobs and as many as 40,000 indirect positions with suppliers and service companies – again, over a decade.

Now those are some great-sounding promises! Nike employs 26,000 American workers now, a few of whom make soles in Oregon and Missouri. But presto, Parker says, the TPP will increase that number by nearly 40 percent!

The thing is, Nike could easily create 10,000 manufacturing and engineering jobs in the United States right now. No TPP required. It employs 1 million overseas, the vast majority in low-wage, high-worker-abuse countries like Vietnam, China and Indonesia. To bring 1 percent of those jobs – 10,000 – to the United States doesn’t seem like such a Herculean, TPP-requiring task, especially considering Nike’s massive profit margin.

The average cost to make a pair of Nike shoes is $30. The American sneaker consumer, who may pay $130 to swoosh, is certainly not getting the benefit of low prices from Nike’s cheap overseas production.

Instead of manufacturing in America, Nike chooses to “just do it” in countries where it knows workers are abused. In the 1990s, the media slammed the corporation for sweatshop conditions in its foreign factories. Like a typical abuser, Nike promised to reform its ways. It said in a news release last week, “Our past lessons have fundamentally changed the way we do business.”

Well, not really. The company admitted in 2011 that two Indonesian factories making its shoes subjected workers to “serious and egregious” physical and verbal abuse. Nike told the San Francisco Chronicle then that there was “little it could do to stop” the cruelty.

And it accomplished exactly that – little. Just last month, a three-part series in the Modesto Bee described sickening conditions in Indonesian factories producing Nike shoes: Workers paid $212 a month for six-day, 55-hour work weeks. Workers denied the country’s minimum wage and overtime pay. Workers paid so little they couldn’t afford to care for their children. Workers fired for trying to improve conditions.

 

 

Nike Sweatshops

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Last week, the world’s largest athletic gear maker said, “Nike fully supports the inclusion of strong labor provisions (in the TPP) because we believe that will drive higher industry standards and create economic growth that benefits everyone.”

Promises, promises. Why doesn’t Nike simply insist on higher standards at its factories? What exactly is there in a trade deal with 11 Pacific Rim nations that is essential to Nike establishing higher standards and stopping the abuse of workers in factories making its shoes?

Oh, yeah, the American middle class, which has suffered most from past trade deals, is not allowed to know that.  The TPP is secret. Well, except to the privileged corporate CEOs who helped write the thing.

In pushing for “Fast Track” authority to shove the deal through a Congress that has abdicated its Constitutional responsibility to oversee foreign trade, President Obama admitted “past deals did not always live up to the hype.”

That’s not quite right. It’s actually way worse than that. Past deals killed U.S. factories and jobs. Since NAFTA, they’ve cost Americans 57,000 factories and 5 million good, family-supporting jobs.

Just three years ago, trade fanatics promised that the Korean deal, called KORUS, would definitely provide more exports and more jobs. Instead, U.S. goods exports to Korea dropped 6 percent, while imports from Korea surged 19 percent. So the U.S. goods trade deficit with Korea swelled 104 percent. That means the loss of 93,000 America jobs in just the first three years of KORUS.

It’s the same story with the other trade deals that followed NAFTA, including the agreements that enabled China to enter the World Trade Organization. The Commerce Department announced just last week the largest monthly expansion in the trade deficit in 19 years. The deficit with China for March was the biggest ever.

What this means is that instead of exporting goods, America is exporting jobs. Foreign workers get the jobs making the stuff Americans buy. And they’re often employed by factories producing products for so-called American corporations like Nike. They’re employed by factories that collapse and kill hundreds. Factories that catch on fire and immolate workers trapped inside. Factories where workers are ill-paid, overworked and slapped when they can’t meet unrealistic production quotas. Factories that pollute grievously.

American workers no longer are willing to engage in this abusive relationship with trade fanatics. They no longer believe the promises of change. They don’t want the federal money TPP fanatics promise them to pay for retraining as underpaid burger flippers after their middle class-supporting factory jobs are shipped overseas. They’re over trade pacts that benefit only multi-national corporations like Nike.

To Fast Track and the TPP, they say, “Just Don’t Do It!”

Leo Gerard. President . United Steelworkers of America.

Follow Leo W. Gerard on Twitter: www.twitter.com/uswblogger

 

 

Organized Labor Should Spend 2015 Training Workers How to Fight

BY David Goodner
While the labor movement is in some of its more dire straits in over a century, 2015 is also shaping up to be a big year for unions. The “Fight for $15” strikes held in over 200 cities on April 15 indicate that a mass movement for worker justice may be on the verge of exploding, one that blends the best of organized labor, community organizing, Occupy Wall Street and #BlackLivesMatter. Oil workers, truck drivers, and dockworkers also went on widely publicized, confrontational strikes this year, and LA teachers at both public and charter schools are preparing to take action on the job, as are graduate students at the University of Washington and several other campuses.

Today, May 1, a Bay Area local of the International Longshore and Warehouse Union shut down its ports to protest the racism and police brutality against black and brown people, providing a classic example of what “social movement unionism” looks like in practice.

Unions are also fighting hard to block looming pension cuts and derail fast track for the Trans-Pacific Partnership trade agreement. But labor’s “Right to Work” defeat in Wisconsin in March was a huge setback, while the results of the April 7 Chicago mayor’s race were mixed, at best. Taken as a whole, the small upsurge in labor unrest in recent months has not been enough to slow down, much less stop and reverse, the steep historical decline of the trade union movement.   Continue reading

Stop Fast Track! Stop TPP !

Legislation granting Fast Track trade authority to President Barack Obama was introduced in the U.S. Senate today. In a statement, AFL-CIO President Richard Trumka said:

At a time when workers all over the country are standing up for higher wages, Congress is considering legislation that will speed through corporate-driven trade deals. For decades, we’ve seen how fast-tracked trade deals devastated our communities through lost jobs and eroded public services. We can’t afford another bad deal that lowers wages and outsources jobs.

Call your senators—855-790-8815—and tell them to say no to Fast Track.

See article here. http://www.dsausa.org/greasing_the_fast_track_to_global_catastrophe_dl

Fast Track would make it easier to ram through complicated trade deals without significant oversight from members of Congress or the public, just a simple “Yes” or “No” vote with no amendments allowed on trade agreements such as the Trans-Pacific Partnership (TPP). Continue reading

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