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As Devastating Plant Shutdown Looms in West Virginia, National Outrage Is Hard to Find

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Hamilton Nolan - In These Times

A union set to be wiped out by layoffs says politicians are missing in action.

Joe Gouzd is pissed. As the president of United Steelworkers Local 8?–?957 in Morgantown, West Virginia, he represents more than 800 of the 1,500 workers who are set to lose their jobs on July 31, when the Viatris pharmaceuticals plant in Morgantown shuts down for good. And though he is used to fights, he does not like feeling abandoned.

Ask Gouzd what he is hearing from his representatives in the federal government as the plant shutdown looms, and he’ll tell you, ?“Not a god damn thing.” 

“We’ve heard nothing,” he says. ?“We’ve heard all kinds of horse shit from A to Z.” 

This is a remarkable statement, when you consider that the closure of this one plant embodies an entire galaxy of issues that should make it a prime candidate for political intervention. It represents the often-lamented effect of offshoring: a decades-old factory whose jobs are being unceremoniously shipped overseas by the enormous conglomerate Viatris, which was formed in 2019 as the combination of Mylan and Upjohn and immediately set out to slash costs. 

It represents the human and economic toll of America’s industrial decline: Many of the union jobs at the plant pay $80,000 or more, more than twice what any of the workers who are laid off are likely to get if they stay in Morgantown and find a new job. An economic analysis by the Democracy Collaborative finds that the plant’s closure could cost the surrounding county more than 4,600 jobs in total and $400 million in wages in the coming year, in a county where the median income for individuals is less than $25,000 a year.

It represents the loss of America’s pharmaceutical manufacturing capability during a pandemic: Though the coronavirus made many politicians talk about the need for America to strengthen its own supply chain at home to avoid relying on foreign countries for medicines and pharmaceutical supplies, the union’s calls for the Biden administration to invoke the Defense Production Act to take over this plant that makes generic pharmaceuticals seem to have fallen on deaf ears. All indications are that the shutdown that has loomed for seven months will go forward as scheduled next week. 

And, on a raw political level, it would seem like the closure of a major factory in West Virginia?—?a state that has served as a political football for the past five years, and that is now the home to Joe Manchin, the Senate’s single most powerful member?—?would offer a prime opportunity for the Democratic-controlled federal government to score points in a red state, prove that Democrats can in fact deliver for the workers that Donald Trump paid lip service to, and throw a bone to Manchin all at once. 

But none of this has caused any concrete action from the federal government to save the plant. The story of the fate that awaits the hundreds of workers in Morgantown has not become a huge national story. A slow-motion disaster that could be the seed of a great bipartisan effort to save unionized American jobs in West Virginia is instead unfolding just as the company said it would when it announced the closure plans, when most of the country was distracted by the question of whether Donald Trump would actually leave office. Gouzd says that the politicians ?“are running away from us.” He dismisses West Virginia Republican Senator Shelly Moore Capito as an unresponsive ?“blowup doll.” Joe Manchin, he says, gave the union members ?“two minutes of his time” several months ago, and has not done anything meaningful on their behalf. 

“He asked us if we still make penicillin,” Gouz says. ?“We haven’t done that for 20 years.” 

In a statement, Joe Manchin said, ?“For months, I have engaged in conversations with Viatris, Monongalia County, the Morgantown Area Partnership, and local and state leaders to find a solution that protects every single job.” (Since the plant’s 1,500 jobs are set to be eliminated in a week, any conversations he had were apparently fruitless.) 

The perceived lack of help is particularly noticeable because Joe Manchin has a very personal connection to this issue: His daughter, Heather Bresch, was the CEO of Mylan, the company that owned the Morgantown plant prior to the rebranding as Viatris. Bresch came under fire in 2016 for her company’s egregious price increases of EpiPens, which prompted a recent $345 million settlement after several class action lawsuits. Bresch herself retired last year after her company’s merger with Upjohn, earning herself close to $20 million during her last year on the job. The 855 unionized Viatris workers in Morgantown who are losing their jobs will receive two weeks of severance pay for every year that they had on the job. 

Our Revolution, the progressive political group, has been working for the past six weeks to elevate the profile of the workers in Morgantown, and try to win them anything it can. That work has been led by Mike Oles, an organizer who has worked on a string of similar plant closures across the country, beginning with the Carrier factory in Indiana that became a national political issue in 2016. In that case, there was a cell phone video of the company’s brutal layoff announcement that went viral; now, Oles says, companies often send workers home before making the announcements, and work strategically to bury the news. 

“This plant seems more saveable than Carrier was, even,” says Oles. ?“This idea that we’re sending 1,500 jobs to India to produce lifesaving medicines, in areas where we have concerns about supply chains… We can support a state that’s transitioning from fossil fuels. Why wouldn’t we try to keep pharmaceuticals in the state?”

The West Virginia state legislature passed resolutions calling on state leaders to keep the plant open, but Governor Jim Justice’s efforts to find a savior do not seem to have succeeded. In June, the White House issued a report calling a robust domestic pharmaceutical supply chain ?“essential for the national security and economic prosperity of the United States,” but that has not prompted any concrete action to keep the Viatris plant open. 

“It’s heartbreaking,” Oles says. ?“These jobs just don’t come back. Communities don’t bounce back from plant closings like this. I’ve seen it in five different states.” 

Adding to the grim situation is the fact that not only will the factory be shutting down?—?the union will as well. United Steelworkers Local 8?–?957 represents only the Viatris workers. After more than 40 years of existence, Gouzd says, the local will be closing after the plant does. 

Viatris said in a statement that the shutdown in Morgantown is a result of the company’s efforts to ?“optimize its commercial capabilities and enabling functions, and close, downsize or divest manufacturing facilities globally that are deemed to be no longer viable.” They add that the decision ?“in no way reflects upon the company’s appreciation for the commitment, work ethic and valuable contributions of our employees.”

The feelings of appreciation are not mutual. The mood inside the factory is ?“toxic,” says Gouzd. ?“The place is caustic. They’re ready to string somebody up by a tree.”

This blog originally appeared at In These Times on July 22, 2021. Reprinted with Permission.

About the Author: Hamilton Nolan is a labor reporter for In These Times. He has spent the past decade writing about labor and politics for Gawker, Splinter, The Guardian, and elsewhere. 


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Why America’s Future Depends on Rebuilding Our Factories

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Brian Banks and his colleagues at Nipro Glass log 60- or 70-hour weeks right now in a grueling race to produce the glass tubing and vials essential to distributing millions of doses of COVID-19 vaccine.

Banks, a maintenance mechanic for nearly three decades, often feared over the years that the Millville, New Jersey, complex would close like so many other glass-making facilities around the country. If it had, America would struggle all the more to turn the corner on a pandemic that’s already claimed 282,000 U.S. lives.

COVID-19 laid bare the decades-long decline of manufacturing that left the nation straining to produce the face masksventilatorsglass vials and other items needed to contain the coronavirus. Now, with vaccines nearly ready for distribution, America has an opportunity to defeat the virus and revive a manufacturing base crucial for protecting the country from future crises.

Of all the responsibilities that President-elect Joe Biden faces upon taking office on January 20, none demands more attention—and requires greater urgency—than ramping up production capacity and rebuilding broken supply chains to keep America safe.

Biden’s Build Back Better campaign will make commonsense investments in U.S. manufacturing that put millions to work and ensure a reliable, high-quality supply of critical goods, like the Nipro vials that are used to store not only COVID-19 vaccine but also the other drugs needed to treat hospitalized patients.

“It’s comforting for us to know that what we’re doing is contributing to something major,” explained Banks, president of United Steelworkers (USW) Local 219M, which represents the 200 or so dedicated workers keeping Nipro’s two Millville plants operating around-the-clock.

“There used to be lots of different places where we could get this glass. They’ve left. If we didn’t have this plant, where would we get it from?” asked Banks, who saw his own local shrink by thousands of members as several local glass facilities closed in recent decades.

In the urgent scramble to build stockpiles of vaccine that can be swiftly released for distribution once federal regulators give approval, multiple drugmakers approached Nipro for help.

The company added production capacity to help meet the flood of orders and relied on workers to put in extra shifts. However, as Banks noted, the nation could have more easily addressed the surging demand if it still had the large number of producers it did in years past and marshaled those collective resources to ramp up glass production.

“The product is still being made, just not in the U.S. It could have stayed here,” said Banks, who already wonders whether Nipro will embrace America’s long-term need for manufacturing and maintain its recently added capacity once the pandemic ends.

Although there are no quick fixes, Build Back Better will not only arrest the long erosion of the manufacturing base but restore America’s power to produce critical goods of all kinds.

Because while the pandemic exposed the nation’s struggle to produce personal protective equipment (PPE), hand sanitizerpharmaceutical ingredients and even the super-cold freezers needed to keep COVID-19 vaccines viable during transport, that’s really just the tip of the iceberg.

Over the past 30 years, as greedy corporations closed thousands of U.S. factories and offshored millions of jobs to exploit cheaper labor and lax environmental laws in other countries, America also gave away the capacity to produce appliancestirescarsball bearings and many other items.

Not even the pandemic, which highlighted the nation’s urgent need for more manufacturing muscle, slowed the corporate quest for ever-higher profits. In September, FreightCar America announced it will close its Alabama factory, eliminate 500 jobs and move operations to Mexico by the end of the year. And Mondel?z, a company that previously shifted American jobs to Mexico, just threatened to close two of its five remaining U.S. Nabisco bakeries.

America needs thousands of other manufactured products every bit as much as it needs PPE. It relies on trucks, boxes and containers to move commerce every day, textiles to refurnish homes devastated by hurricanes and steel, aluminum and other materials for military vehicles.

Biden understands that rebuilding the manufacturing base is a top priority that transcends politics. He will require government agencies and contractors to spend taxpayer dollars on U.S.-made materials, products and labor, ensuring America invests in itself.

“You’ve got to be able to produce things to survive,” observed Libbi Urban, vice president of USW Local 9231, noting that America’s dependence on foreign suppliers puts the nation at grave risk.

Foreign countries can experience their own production problems, jack up prices during emergencies, deliver inferior products or simply cut off supplies any time they want, noted Urban, who represents workers at two ArcelorMittal steel facilities in New Carlisle, Indiana.

“Do you want to rely on steel from China if you want to make battleships, tanks or aircraft carriers? Do you think they’re going to sell you good-quality steel?” said Urban, who chairs her local’s Women of Steel program. “If you go to war with somebody, you can’t rely on them to make your ships or your tanks.”

Even as they put in wearying amounts of overtime, Banks and his colleagues have to maintain constant vigilance and observe numerous safety precautions to protect themselves from COVID-19.

With millions of lives riding on their work, Banks said, they cannot risk a spate of infections that could disrupt production.

Banks hopes America remembers the risks essential workers continue to make. But what he really wants is for the nation to learn from its failures and commit to a full-scale revitalization of manufacturing to keep his members employed—and America safe—long after the threat of COVID-19 is over.

“We’re happy to be doing this,” he said. “But we are also worried. At some point, when this pandemic ends, are we still going to thrive?”

This article was produced by the Independent Media Institute.

About the Author: Tom Conway is the international president of the United Steelworkers Union (USW).


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Trump hails â€manufacturing miracle’ as factories bleed jobs

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Eleanor Mueller

Trump’s anti-trade agenda and a pandemic-induced recession have combined to shutter factories and accelerate decades-old trends toward automation, eliminating hundreds of thousands of manufacturing jobs, many for good, including in the Rust Belt states he needs to win in November.

The president’s path to the Oval Office was paved by his victory in this factory-intense region, where a downturn in manufacturing that began in 2015 opened the door for him to appeal to demoralized blue-collar voters.

But the White House’s trade wars kicked the sector into another slump in 2019, with Michigan, Ohio, Indiana, Wisconsin, Minnesota and Pennsylvania facing declines or plateaus in manufacturing employment even back in February — well before Covid-19 forced layoffs at dozens of plants. As of July — the most recent month for which data is available — each state is down between 20,000 and 40,000 workers from prepandemic levels.

That record presents a particularly daunting challenge for Trump to replicate his stunning victory of 2016 as he struggles to overtake Democrat Joe Biden, who appeals more to Midwestern voters than Hillary Clinton did four years ago.

Yet the president is framing his policies as an unmitigated success.

“You better vote for me, I got you so many damn car plants,” Trump said during a Sept. 10 rally in Michigan. “And we’re going to bring you a lot more.”

“Trump has been all in on this huge resurgence of manufacturing employment, and that has not materialized.”

 Mark Muro, Brookings economist

But Michigan was down some 66,500 manufacturing workers in July 2020 from July 2019 — and the general trend, even before Covid-19, was down as well. There were 10,200 fewer manufacturing workers in the state in February 2020 than there were in February 2019.

He had a similar upbeat message for Ohio.

“Over the last six months, we’ve witnessed one manufacturing miracle after another,” the president said on a visit last month to a Whirlpool factory. Ohio was down 48,000 manufacturing workers in July from last year. Pre-pandemic, it had lost 2,200 workers in February from last year.

The trend is mirrored nationwide. Manufacturing across the U.S. is still down 720,000 workers from February despite gaining 29,000 jobs in August, with the pandemic more than wiping out the overall modest gains of 500,000 from Trump’s first three years in office — about the same pace of growth as under President Barack Obama. It was not an improvement over prior years — nor did it manage to restore more than a fraction of the jobs lost in the previous decade, according to an August analysis by the Economic Policy Institute.

A Bureau of Labor Statistics analysis released Sept. 1 said that even prepandemic, the sector was on track to lose nearly 450,000 workers by 2029, the most of any area of the economy. At the same time, output has made a notable recovery due to increased automation, with the industrial production index bouncing back to almost 98 in July â€” less than 10 points down from February.

That disparity means that many of the losses are likely permanent, economists say.

“Trump has been all in on this huge resurgence of manufacturing employment, and that has not materialized,” said Mark Muro, an economist at the Brookings Institution. “Productivity-enhancing technology, such as robotics, and then international competition: To me, that’s a recipe for continued downward pressure on employment. I don’t think mass employment is likely to return.”

Remember when Congress came to a bipartisan agreement on coronavirus relief … like a million years ago? Well, it doesn’t look like that’s gonna happen again anytime soon — despite the tens of millions of Americans struggling right now.

Manufacturing is hit hard by any recession, but Covid-19 presented unique issues. Few factory jobs can be performed from home, meaning that these workers were some of the first to be furloughed or laid off as the production lines shut down.

While economic downturns typically spur employers to turn away from physical labor and toward automation, the social distancing required by Covid-19 was an extra motivator. Combine that with advanced technology — along with historically low interest rates to make it cheaper to purchase it — and the move was a no-brainer for many manufacturers.

“In recessions of any kind, automation is accelerated because paying workers just becomes more expensive,” Muro said. “Meanwhile, technology and automation has improved and gotten cheaper so it’s easily used.”

More than half of U.S. companies report being more willing to invest in automation as a result of the pandemic, a July survey by Honeywell Intelligrated found. Tyson is shifting to robotic butchers; BMW is implementing artificial intelligence quality control. As of May, sourcing for automation equipment was up nearly 150 percent year-over-year, and up over 20 percent from last quarter.

Long before Trump took office, the U.S. was already well on its way to becoming more efficient at manufacturing with fewer workers. Over the past three decades, output has grown even as employment has declined.

“The fact which gets lost in some of the discussion is that in and of itself, that improvement in productivity — making more stuff per unit of labor input — is a good thing,” said Jeffrey Miron, an economist at the libertarian Cato Institute.

But it also leads to the displacement of workers, and when Trump moved to impose tariffs on Chinese steel, aluminum and other products, that only served to accelerate the effect, economists say. Higher prices for imports have decreased demand, which — when combined with a global economic slowdown — contributed to depress manufacturing employment. On top of that, American exporters are hurt by retaliatory tariffs imposed by other countries.

“A couple of things have played into the manufacturing job losses: One is trade,” said Michael Hicks, an economist at Ball State University who studies manufacturing. “The second, and the bigger effect, really, is the productivity growth of American manufacturing.”

Trump’s reelection campaign maintains that he has bolstered the manufacturing sector during his time in office, pointing to the hundreds of thousands of manufacturing jobs that were added prepandemic.

“Back in 2016, people doubted President Trump could revive manufacturing in the United States, with then-President Obama saying he would need a â€magic wand’ to bring back manufacturing jobs — but President Trump’s policies delivered,” campaign spokesperson Samantha Zager said. “President Trump is already rebuilding our economy, adding back manufacturing jobs, and continuing to promote policies that boost American manufacturers, no magic wand needed.”

Trump “talked a lot about manufacturing, but the policies he engaged in were predictably damaging to manufacturing,” Hicks said. “As a result of the tariffs his administration imposed, “people buy less [manufactured goods], and if they buy less of them, that causes lower demand for employment.”

Whether Trump wins reelection come November — and is free to continue his trade wars — could have an outsize impact on the U.S. manufacturing workforce, particularly given the sector’s relatively modest job gains since February.

“The returns from layoffs are probably over,” Hicks said. “And so if that’s the case, if we see a second term of the Trump presidency, I would expect manufacturing employment to not be able to crawl back to what it was at the end of the Obama administration.”

When workers lose their jobs in manufacturing, they are most likely to be rehired in the service industry, economists say. It’s often lower-skilled workers who are the first to go, particularly when displaced by automation — and when they do, low levels of education and barriers to relocation mean that they typically end up working in restaurants.

“For 30 years, manufacturing workers have been continually dislocated by robotics and wind up working in service jobs, or moving into nonparticipation,” Muro said. ”The older they were at the time of dislocation, the less likely they have been to rejoin the workforce.”

Between 2000 and February 2020, manufacturing lost about 5 million jobs. Over the same time period, the food services industry gained roughly the same amount, per Labor Department statistics.

“Almost person-for-person that we lost in manufacturing, we gained in restaurants,” William Spriggs, AFL-CIO’s chief economist, said.

The associated drop in wages — manufacturing workers made an average of $28.78 an hour in July, while food service employees made an average of $15.50 — has served to exacerbate economic inequality, Spriggs said.

“The slide, if people leave that industry, seems to be that they don’t end up in some other high-wage industry,” Spriggs said.

This blog was originally published at POLITICO on September 16, 2020. Reprinted with permission.

About the Author: Eleanor Mueller is a legislative reporter for POLITICO Pro, covering policy passing through Congress. She also authors Day Ahead, POLITICO Pro’s daily newsletter rounding up Capitol Hill goings-on.


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Biden vows to create 5M manufacturing jobs, ‘Buy American’

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Biden is pledging to invest $300 billion in research and development over four years that would be spread across the U.S. 

Former Vice President Joe Biden is laying out a plan to rebuild the U.S. economy that includes cracking down on outsourcing, investing billions in research and development and creating at least 5 million jobs in manufacturing and innovation.

The plan places a major emphasis on “Buy American” provisions that would tighten restrictions on what qualifies as a U.S.-made good and invest $400 billion in government procurement, both of which the Democratic presidential candidate’s campaign says will help power demand for American products and services.

Biden is pledging to invest $300 billion in research and development over four years that would be spread across the U.S. to a diverse array of businesses and entrepreneurs, including women and minorities. The spending would spark what campaign officials called “high-quality job creation” around the country.

He is also calling for a pro-worker trade strategy in which the U.S. will work with its global allies and within World Trade Organization rules to get tough on China, which he blames for harming American workers and contributing to a decline in U.S. manufacturing.

“Joe Biden’s going to fight like hell for American workers through trade, enforcing deals and rallying the world to take on China’s abuses,” a senior Biden campaign official told reporters on a press call.

The moves come as part of Biden’s four-part “Build Back Better” economic plan, which was released Thursday morning and which focuses on clean energy, the caregiving workforce and racial equity as well as trade and manufacturing. But senior campaign officials sharing details Wednesday night focused on the latter subject, saying information on the other “pillars” will be released later.

Officials sought to draw contrasts with the current administration, saying “the Trump trade strategy has simply failed.” But when asked whether Biden would reverse any of President Donald Trump’s major trade policy moves — including withdrawing from the preliminary trade deal signed with China or lifting tariffs on steel and aluminum imports — an official declined to commit, saying the former vice president would have to review each of those issues once in office.

Trump himself won the presidency in 2016 pledging to cut down on outsourcing, revive American manufacturing and take on Beijing.

Officials, who spoke on background, emphasized this plan is “not just a response to Donald Trump’s massive mismanagement of the pandemic” but also aims to address longstanding weaknesses and inequities in the economy.

“Vice President Biden truly believes that this is no time to just build back to the way things were before,” one official said. “This, he believes, is the moment to imagine and build the new American economy for our families and next generation.”

This blog originally appeared at Politico on July 9, 2020. Reprinted with permission.

About the Author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign. It was in that role that she first began covering trade, including Donald Trump’s rise as the populist candidate vowing to renegotiate NAFTA and Hillary Clinton’s careful sidestep of the Trans-Pacific Partnership.


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Workers Who Waged the Biggest Trump-Era Manufacturing Strike Just Struck a Deal—Here’s What It Says

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This article first appeared in Labor Notes.

Three months after the largest manufacturing strike of the Trump presidency so far, locomotive plant workers in Erie, Pennsylvania, have a deal. Electrical Workers (UE) Locals 506 and 618ratified a four-year contract on June 12.

In a qualified victory, the 1,700 members conceded a two-tier wage structure with a 10-year progression for new hires to reach parity with current workers, but beat back the company’s demands for a harsher version of two-tier and numerous other concessions.

“We’ve managed to preserve a lot of what we had,” said UE Local 506 President Scott Slawson. He added, however, “There were some gives on the union side for sure—there’s no two ways about it.”

Wabtec, which took over the plant in February following its purchase of GE Transportation, had threatened to move work out of Erie if the union refused a lower wage scale.

Thousands of jobs have been eliminated at the plant since 1955. In 2017, GE vowed to move all locomotive production to Fort Worth, Texas, where it opened a nonunion plant in 2013. But those plans never panned out, as the Fort Worth plant struggled to hire and retain enough skilled workers, with quality suffering as a result. Work has been moving back to the Erie plant over the last year.

The new agreement not only maintains the existing jobs at the plant but also guarantees 100 new positions in the Erie factory by the end of the contract. UE also beat back Wabtec’s demands to institute mandatory overtime and hire up to 20 percent of the plant’s workforce as nonunion temps.

Four hundred sixty previously laid-off workers will be given preferential treatment in hiring as jobs come open—an important gain in the face of Wabtec’s claim that it had no obligation to workers who were laid off by GE, not Wabtec. However, while they will maintain their seniority, they will come back on the new, lower pay scale.

The company and the union compromised on reorganizing to 31 job classifications; previously, workers had 43 classifications, which Wabtec was attempting to reduce to 17. UE argued the reduction would endanger worker safety.

The union maintains the right to strike based on transfer or subcontracting of work that results in permanent layoffs, or on a failure by the company to resolve grievances in a timely manner.

Wabtec—short for Westinghouse Airbrake Technologies—bought the $4 billion-a-year GE Transportation division last year, doubling the size of the company overnight.

The purchase led to the early termination of UE’s national contract with GE. The Erie plant was the last factory covered under the 70-year-old agreement; GE had spun off the other factories’ work in an ongoing series of corporate reconfigurations, or outsourced it, largely to nonunion plants in the U.S. or overseas.

When the sale was finalized in February, the new owner unilaterally stopped offering a pension and retiree health care, and imposed a host of other concessions, including mandatory overtime and two-tier wages starting as low as $16.75 an hour. That prompted a nine-day strike by Locals 506 and 618, ending with a 90-day interim agreement which restored the terms of the union’s previous contract with GE while the parties negotiated the new four-year deal.

During those three months, Locals 506 and 618 took a number of actions to pressure the company. Workers decorated their lockers with numbers counting down the days until the end of the interim agreement. They held pickets before work. They joined forces with UE Local 610, which represents workers at other Wabtec facilities, to rally in Wilmerding, Pennsylvania, where Wabtec is headquartered. And the union and its allies picketed Wabtec’s shareholder meeting in Pittsburgh.

Wabtec eventually moved off its demand for a permanent second tier. The company’s revised proposal would have started workers off at $17 an hour, with an 18-year progression to reach the top tier. But ultimately, with the threat of another strike looming, the union was able to shrink the progression to 10 years, and boost starting pay to $20.47 for the lowest classification. Existing workers on the lowest job classification currently earn $31.49.

This decade-long grow-in is similar to the Auto Workers’ compromise with the Big 3 automakers, where hires after 2007 take eight years to reach wage parity with pre-2007 hires. A key difference, though, is that these auto workers remain in a permanent Tier 2 when it comes to benefits. Everyone at the Erie plant will get the same benefits, and those in the lower tier will actually pay 20 percent less in premiums.

“The 10-year progression is not something that people wanted to happen, but the company would not let that go,” said UE General President Peter Knowlton. He believes that if the union had held out on the issue, it would have been forced to go on another strike—this one self-defeating. The union would have lost community support, he said, and ultimately would have left 460 already laid-off workers without a job to come back to because Wabtec was claiming it had no responsibility to them.

The good-paying jobs at Wabtec’s Erie plant are crucial not only to union members and their families, but also to the community.

Located between Buffalo and Cleveland, Erie falls squarely in the Rust Belt, and its fortunes mirror those of similar cities. It was once a proud manufacturing hub, but factory relocations and closures have sapped jobs and people. The population is 96,000, down from a peak of 131,000 in 1950. And the city is poor, with a median household income of just $35,800.

“Wabtec is one of the area’s largest manufacturers and it still pays a family-sustaining wage,” said Slawson. “I think there’s a relief in the community—we found a way, we found a path, hopefully for the future of Erie and Erie County.”

He is careful to note that this is the union’s first contract with a new employer, and the union will have to stay on its toes with Wabtec.

“We had 82 years of interpretation with GE,” he said. “I think both sides are going to go through some growing pains over the next four years.”

Still, he’s optimistic about the plant’s future, citing the highly skilled workforce and the possibility that Wabtec could shift additional work to the 4.5 million-acre complex.

This article was originally published at In These Times on June 27, 2019. Reprinted with permission.

About the Author: Saurav Sarkar is an Assistant Editor of Labor Notes. Twitter Username: @labornotes

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The Plan Behind a Chicago Project to Lift Up Working People

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Manufacturing jobs have been on a steady decline for several years because of trade deals, technological advancements and economic recessions. Despite this, manufacturing remains one of the most important sectors of the U.S. economy, employing more than 12 million workers, or about 9% of the total U.S. employment.

American cities continue to spend billions each year to buy major equipment, such as buses and railcars for public transportation systems. This spending has the potential to support tens of thousands of good manufacturing jobs. According to the Institute for Women’s Policy Research, there will be 533,000 good middle-skill manufacturing jobs available over the next decade.

Jobs to Move America is working with labor, business, community and governmental groups around the country to ensure money spent on building transportation infrastructure is also used to promote equity and bring manufacturing jobs back to the United States. The organization also is advocating for workforce development and training programs that prepare working people for high-skilled careers that will help them succeed in the 21st-century economy.

Jobs to Move America and community partners recently managed to ensure a project in Chicago will create good jobs and long-term economic opportunities for the community. JMA worked with the Chicago Federation of Labor, the city of Chicago and the Chicago Transit Authority for four years to ensure that the U.S. Employment Plan was included as part of the CTA’s latest $1.3 billion project, which will supply up to 846 new railcars and replace about half of the CTA’s current fleet. The employment plan is a toolbox of policy resources transit agencies can include as part of their request for proposals to encourage bus and rail manufacturers to train and create good high-skilled U.S. jobs in communities that need it most.

The company that won the contract, CRRC Sifang America committed to building a new $100 million unionized facility on Chicago’s South Side, the first in 36 years. The company will spend $7.2 million to train 300 factory and construction workers. Additionally, CRRC has signed on to a community benefits agreement guaranteeing support for South Side residents and is part of a workforce-labor-business consortium that received a $4 million Department of Labor grant to develop an apprenticeship and training program, and a pipeline into manufacturing jobs in Chicago.

The work of JMA with labor and community partners leveraged a robust manufacturing jobs program that will strengthen the middle class, stimulate increased investment in new domestic manufacturing facilities, and create opportunities for low-income communities. Most importantly, the Chicago work has set a precedent for the rest of the country, lifting up standards and creating a model for how communities and business can and should work together.

The idea behind JMA’s work is simple. There is a need to reframe the discussion about good jobs and economic prosperity away from a “cheapest is best” approach to a broader discussion about the economic impact of using taxpayer dollars to create good jobs, especially for those historically excluded from the manufacturing sector, like women and people of color.

Take, for instance, Kristian Mendoza in the Los Angeles area, a veteran who was struggling to find a good-paying job after his service. He was forced to commute to a job an hour-and-a-half each way from his home. The job paid so little he could barely afford the gas to get there and did not have the resources to take care of his two young children.

Because of the work of the JMA coalition in Los Angeles, a U.S. Employment Plan was implemented in a project of the Los Angeles County Metropolitan Transportation Authority. Part of the agreement is a community-labor partnership with Kinkisharyo, the company that won that bid. The company committed to hiring and exploring skills training for disadvantaged U.S. workers. To date, the company has exceeded its commitments, employing some 400 workers, most of whom are people of color in a unionized factory.

Mendoza is one of the 400. After struggling for years, he has been able to move out of his family’s home and into a place close to the Kinkisharyo factory.

The JMA team is now working on multiple projects across the country, monitoring the industry for upcoming opportunities to maximize public transportation dollars and ensure there are more success stories like Mendoza’s.

This blog was originally posted on aflcio.org on April 12, 2017. Reprinted with permission.

Alaa Milbes is the Senior Communications Specialist for Jobs to Move America. Prior to joining JMA, Alaa served as Oxfam’s Media Officer in Jordan for the Syria crisis response on a short-term assignment, where she worked on a number of media strategies and campaigns meant to raise awareness about Syrian refugees. Alaa also did communications work for the United Nations Relief and Works Agency for Palestine refugees, covering 5 regional offices in Jordan, Lebanon, Syria, and the occupied Palestinian territory.

 


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Make American Jobs

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President Donald Trump had Harley-Davidson executives and employees over to lunch at the White House last week and reiterated his promise to end wrong-headed trade policies that enable foreign countries to eat American workers’ lunch.

Trump reassured the Harley workers from the United Steelworkers (USW) union and the International Association of Machinists (IAM) that he would renegotiate NAFTA and other trade deals.

“A lot of people [have been] taking advantage of us, a lot of countries [have been] taking advantage of us, really terribly taking advantage of us,” he said as news cameras clicked. “We have to be treated fairly.”

No promise could be more heartening to workers as corporations like Carrier and Rexnord continue to move jobs to Mexico. No news could be better in the same week that the Economic Policy Institute (EPI) released research showing that since 2001, the United States’ massive trade deficit with China cost 3.4 million Americans their jobs.

EPI-jobs-China-Gerard-OurFuture

Workers, families and communities have suffered as trade and tax policy over the past quarter century encouraged corporations to off-shore factories and jobs. Flipping that philosophy to favor American workers and domestic manufacturing is exactly what labor organizations like the USW have long fought for. If Trump actually achieves that, all Americans will benefit.

In the meantime, Rexnord Corp. has finalized plans to uproot its bearings manufacturing machines in Indianapolis, transport the equipment to Mexico and throw 300 skilled and dedicated workers, members of my union, the USW, into the street. Terminations begin Feb. 13.

Automation did not take these workers’ jobs. The lure of dirt-cheap wages in Mexico and tax breaks awarded for the costs of moving jobs and machinery stole them.

Trump talked to the Harley workers and executives about changing tax policy. Ending all special tax deals and loopholes that corporations like Rexnord and Carrier use for shuttering American factories and shipping them to other countries would be a good first step. U.S. policy shouldn’t reward corporations like Rexnord and Carrier that profit from exploiting the international wage race to the bottom and the wretched environmental regulation of emerging nations.

Harley-Gerard-OurFuture
Caption: Photo by Vlad/Flickr

The next logical step would be establishing consequences for those corporations — like requiring them to pay substantial economic penalties if they want access to the U.S. market for their once-domestic and now foreign-made products.

In addition, American policy must be —  just as Trump promised in his campaign — to stop trade law violators who are trampling all over American workers.

The EPI study detailed the devastation caused by the worst violator — China. American workers and companies can compete on a level playing field with any counterpart in the world. But the EPI study shows just how much American workers and their employers suffer when the United States fails to strictly enforce international trade law.

Of the 3.4 million jobs lost between 2001 and 2015 because of the U.S. trade deficit with China, EPI found that nearly three-quarters of them, 2.6 million, were manufacturing jobs. Every state and every congressional district was hit. These are jobs fabricating computer and electronic parts, textiles, apparel and furniture.

Manufacturing jobs such as these provide family-supporting wages and benefits such as health insurance and pensions. As these jobs went overseas, American workers’ income stagnated while those at the top — executives, 1 percenters and corporate stockholders — benefited.

As the rich got richer, the EPI researchers found, all non-college educated workers lost a total of $180 billion a year in income.

When the United States agreed to allow China into the World Trade Organization (WTO) in 2001, former President Bill Clinton said the access that the deal provided American companies to the gigantic Chinese market would create jobs. Promises, promises.

It’s possible no one guessed just how massively China would violate the trade rules it agreed to abide by under the WTO pact. Numerous investigations by the Department of Commerce have found China improperly subsidizes its exports by providing artificially cheap loans, free land, and discounted raw materials and utilities. To keep its workers employed, China helps finance overproduction in industries like steel and aluminum, then dumps the excess at below-market prices in the United States, bankrupting mills and factories here.

China pirates innovation, software and technology from foreign producers. To steal trade secrets, its military hacked into the computers of American corporations and the USW. In addition, China has manipulated the value of its currency so that its exports are artificially cheap and imports from the United States are artificially expensive.

Even if the scale of violation was underestimated, when it occurred, the American government had a responsibility to take action, to file trade cases, to take issues before the WTO, to negotiate to bring China in line with international standards and protect American jobs and preserve domestic manufacturing, which is crucial to national defense.

Precious little of that occurred. The trade deficit with China exploded, obliterating American jobs — a quarter million on average every year since China joined the WTO in 2001. China exports to the United States its overproduced aluminum, steel and other commodities, but also its unemployment.

After that lunch, Trump thanked Harley-Davidson for assembling its iconic motorcycles in America. He extended his hand in aid, saying, “We are going to help you, too. We are going to make it really great for business, not just for you, but for everybody. We are going to be competitive with anybody in the world.”

American workers and domestic manufacturers already are competitive. What they need is a government that doesn’t require them to compete with a handicap so huge that it’s like asking Evel Knievel to jump his Harley-Davidson XR 750 over 19 cars without a ramp. What they need is tough action against corporations that renounce their birthplace for profit and against flagrant, job-stealing trade violators like China.

This post originally appeared on ourfuture.org on February 7, 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.


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This week in the war on workers: SoftBank investment is not necessarily something to look forward to

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Donald Trump’s claim that, because of him, SoftBank would be investing $50 billion in the U.S. and creating 50,000 jobs was greeted somewhat less credulously than his Carrier claims. But it’s still worth an extra look at the details. It’s not just that SoftBank had already planned a major investment fund before the election:

Worse yet, this deal is lose, lose, lose for the domestic economy. First, this inflow of foreign capital will bid up the U.S. dollar, which will reduce the competitiveness of U.S. manufacturing by making imports cheaper and exports more expensive. This will increase the U.S. trade deficit and reduce employment in U.S. manufacturing. The U.S. dollar has gained about 25 percent in the past two-and-a-half years, and one-fifth of that increase has occurred since the election. As a result, the trade deficit in manufactured goods increased sharply in 2015 and is poised for another increase after the recent run-up in the dollar. Meanwhile, the United States has lost 78,000 manufacturing jobs since the first of the year due, in part, to the rising trade deficit.

Second, foreign investment in the U.S. economy is dominated by foreign purchases of existing U.S. companies. Between 1990 and 2005, foreign multinational companies (MNCs) acquired or established domestic subsidiaries that employed 5.25 million U.S. employees. The vast majority (94 percent) of jobs associated with those investments were in existing firms acquired by foreign MNCs. However, 4 million of those jobs disappeared through layoffs or divestiture of part or all of those companies […]

SoftBank provides a clear example of plans to acquire and merge existing U.S. businesses.

This article originally appeared at DailyKOS.com on December 17, 2016. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.


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The letter from Carrier to its employees that Donald Trump doesn’t want you to read

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aaron ruparOn Thursday, President-elect Donald Trump traveled to the Carrier factory in Indianapolis, Indiana to tout the deal he helped orchestrate to keep about 800 manufacturing jobs in the United States in exchange for state and federal incentives, including $7 million from Indiana.

“Companies are not going to leave the United States anymore without consequences. Not going to happen. It’s not going to happen, I’ll tell you right now,” Trump said during a speech at the factory.

What Trump didn’t mention, either then or during a subsequent “thank you” rally later Thursday in Cincinnati, is that the deal he and Vice President-elect Mike Pence helped broker won’t prevent Carrier from outsourcing more jobs than are being saved in Indiana. The company will keep about 800 jobs at the Indianapolis plant, but will still move 600 jobs from Indianapolis to Mexico. Another 700 jobs are being moved to Mexico from a separate factory in Huntington, Indiana, which will be closed.

In sum, about 800 American jobs are being saved, but another 1,300 are disappearing. Those painful details were acknowledged in a letter Carrier sent to affected workers on Thursday that was posted to Twitter by Indianapolis-based journalist Rafael Sánchez.

screen-shot-2016-12-06-at-11-57-12-pm

Trump’s deal with United Technology, the company that owns Carrier, is good news for the workers who will keep their jobs, of course. But doling out huge tax breaks and other incentives to entice companies to keep jobs in the United States is bad economics, as Trump himself acknowledged on the campaign trail when he denounced government officials for believing that providing economic incentives to corporations keeps jobs in the United States.

During a Thursday appearance on CNBC, conservative economic policy analyst Jimmy Pethokoukis went so far as to call Trump’s speech at the Carrier plant “absolutely the worst speech” about economics in more than 30 years.

“The idea that American corporations are going to have to make business decisions, not based on the fact that we’ve created an ideal environment for economic growth in the United States, but out of fear of punitive actions based on who knows what criteria exactly from a presidential administration,” Pethokoukis, a scholar with the conservative-leaning American Enterprise Institute, said. “I think that’s absolutely chilling.”

On Friday, the latest jobs numbers reinforced that Trump’s Carrier deal comes amid a long-term downturn in manufacturing jobs in the country. While a net 178,000 private and public positions were added in November and the unemployment rate fell to 4.6 percent, the lowest since August 2007, manufacturing jobs fell by 4,000. For the year, manufacturing jobs across the country have fallen by 78,000.

If the trend continues into 2017—manufacturing jobs in the country have been declining since before George W. Bush took office—Trump would need to strike roughly 100 Carrier-equivalent deals to stem the tide, at an untold cost to taxpayers.

This blog originally appeared in ThinkProgress.org on December 1, 2016. Reprinted with permission.

Aaron Rupar is a Journalist at ThinkProgress. Twitter: @atrupar. Email: arupar@americanprogress.org


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Replacing Factories With Jails: Just 44% of Milwaukee’s Black Men in Workforce

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Roger BybeeCity has lost three-fourths of its manufacturing jobs since 1960s

MILWAUKEE—Wisconsin’s economic problems are only deepening the political crisis for Gov. Scott Walker, already the target of a massive recall campaign that gathered 1.1 signatures from Wisconsinites.

Despite Walker’s pledge to preside over the creation of 250,000 jobs by 2015, Wisconsin has lost jobs for the past six months as the rest of the country has added them, and job losses have totaled more than 35,000 since he signed his highly controversial state budget last June.

But there is a more specific economic (and social) crisis facing Milwaukee: Just 44.7 percent of African-American males are still part of the workforce, reflecting the long-term decimation and relocation of the city’s industrial based and the lingering effects of the Great Recession.

Even for African-American males in their prime working years (25 to 54), only 52 percent were in the workforce. “That took me aback,” stated Marc Levine, author of the new study illuminating the appalling level of joblessness in the city’s black community.

“The most striking finding was the extent to which black employment rate has declined across all the heavily-industrialized cities of the Northeast and Midwest, like Milwaukee, Chicago, Cleveland, Detroit, and Buffalo,” said Levine, director emeritus of University of Wisconsin-Milwaukee’s Center on Urban Development.

These cities have been hit by three waves of industrial shifts, first to the suburban ring, then to “the right-to-work states of the anti-union South,” and finally offshoring to low-wage, repressive nations like China and Mexico, said Levine.

With 54 percent of Milwaukee’s black workers employed in manufacturing in 1970, “The unraveling of manufacturing affected blacks here more than in other cities,” Levine noted. “All of the old industrial cities have been hit across the board, but Milwaukee with its especially large industrial base was really affected.”

As the study documents,

No metro area has witnessed more precipitous erosion in the labor market for black males over the past 40 years than has Milwaukee. The 2010 data, however, revealed a new nadir for black male employment in Milwaukee.

Milwaukee has lost a three-fourths of its manufacturing jobs since the 1960s, representing a giant canyon of destroyed opportunities. In the city long called “the Machine Tool Capital of the World” in recognition of its highly-skilled industrial workforce, only about 26,000 manufacturing jobs remain.

The loss of these jobs has been accompanied by a substantial drop in family incomes in the city. Milwaukee’s median household income, adjusted for inflation, plummeted
a stunning 21.9 percent since 1999, according to new U.S. Census data. That’s well over twice the national average of 8.9 percent.

But along with the impact of de-industrialization and de-unionization affecting the entire working class, African Americans in Milwaukee have faced “hyper-segregated conditions, with 88 percent of the blacks in the metro area concentrated in the central city, said Levine. With many lacking cars and public transportation to the suburbs—where almost all employment increases have occurred—the inner city economy has radically changed over the past four decades.

“In the new economy of the inner city, there are only 4,800 blacks employed in production now,” a small fraction of a once-huge African-American industrial working class, said Levine. “At the same time, every year we have about 5,000 African-American males entering the prison system. … We’ve seen the twin phenomena of the loss of factory jobs and a poorly-conceived war on drugs. As a result, almost 50 percent of Milwaukee’s black males are in jail, in prison, on probation, on parole, somewhere in the system.”

Milwaukee’s corporate leaders and media have continued to promote job training as the central solution to both high unemployment in the central city and a shortage of skilled workers:

The new chairman of Wisconsin Manufacturers & Commerce, the state’s biggest and most vocal business lobby, … vowed to tackle an issue that’s infuriated plant managers for years: a chronic inability to fill manufacturing jobs for lack of qualified or willing candidates.

Todd Teske, president and chief executive of Wauwatosa-based Briggs & Stratton Corp., said he would make the skills mismatch his top priority during the two-year rotating chairmanship of the 101-year old business group….

Industrial jobs are the core of Wisconsin’s middle class, Teske said: “But those jobs are threatened by a number of factors including a shortage of skilled industrial workers to fill existing and expected job vacancies.”

But for Levine, the training strategy championed by Teske and WMC is bound for failure. “It represents the tried and true approach for those who won’t face up to the fact that the private sector isn’t filling the need for jobs, but don’t want to challenge the private sector or their investment decisions.”

Briggs, for example, has moved thousands of jobs to Mexico and China.

“It’s not a skills shortage, it’s a shortage of private-sector job creation,” Levine says.

With Corporate America clearly opting out of domestic job creation—2.9 million jobs were eliminated in the United States since 2000, while 2.4 million were created offshore—local, state, and federal officials could confront the jobs crisis with a strategy that directly creates jobs, boosts consumer demand, and repairs America’s deteriorating infrastructure.

“We need Keynesian measures to build consumer demand, said Levine. “We need direct government involvement to rebuild the infrastructure, renovate our transportation systems, and update our communications system. All of these will also build broader consumer demand.”

The absence of jobs and income so acutely afflicting blacks in Milwaukee—and Americans of all colors across the nation—will not be cured by wishful thinking about the “insourcing” of jobs hailed by President Obama in recent speeches.

“Insourcing is a very, very minor trend,” Levine, pointing out that Milwaukee’s Master Lock (also see here ), although much celebrated (sometimes incorrectly) has only brought back a small share of the jobs it sent to Mexico. Still, the vastly-downsized United Auto Workers Local 469 is grateful for the addition of about 100 jobs over the last year;  a minimum of 800 Master Lock jobs had been shipped off to Mexico and China.

The depth of suffering in Milwaukee’s African-American community and elsewhere caused by the jobs shortage demands urgent action, not hope that “the private sector” to step forward. But when President Obama has talked about the need for job creation in recent months, he has stressed the need for private-sector” involvement.

Meanwhile, indifferent CEOs of major corporations sit on unprecedented trillions in reserves, and continue exporting jobs south of the border and overseas.

This blog originally appeared in Working in These Times on February 1, 2012. Reprinted with permission.

About the Author: Roger Bybee is a Milwaukee-based freelance writer and progressive publicity consultant whose work has appeared in numerous national publications and websites, including Z magazine, Dollars & Sense, Yes!, The Progressive, Multinational Monitor, The American Prospect and Foreign Policy in Focus. Bybee edited The Racine Labor weekly newspaper for 14 years in his hometown of Racine, Wis., where his grandfathers and father were socialist and labor activists. His website can be found here, and his e-mail address is winterbybee@gmail.com.


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