Speak Up to Stop Unfair Trade

They came first for the Communists, And I didn't speak up because I wasn't a Communist. Then they came for the Jews, And I didn't speak up because I wasn't a Jew. Then they came for the trade unionists, And I didn't speak up because I wasn't a trade unionist. Then they came for the Catholics, And I didn't speak up because I was Protestant. Then they came for me, And by that time no one was left to speak up. --Martin Niemoeller

China is attacking the U.S. with a stealth weapon of mass economic destruction -- unfair trade. U.S. corporations -- and China -- which profiteer from it prefer to label this "free trade."

But industrial carnage is the only way to describe the devastation done to the U.S. economy by an accumulated trillion dollar trade deficit with China, the destruction of U.S. jobs by off-shoring them to China, and the disintegration of the U.S. industrial sector that is foreclosing America's ability to support itself or to manufacture weapons to defend itself.

The United Steelworkers union is challenging China and the profiteers. It has demanded imposition of duties and tariffs on imported Chinese products -- not because the U.S. can't compete but because China cheats.

We've watched our members lose their jobs as steel mills idled, paper plants closed, and tire factories shuttered. In this war, China came for our jobs. Virtually no one spoke up for displaced blue collar workers. Perhaps you don't wear a blue collar. A white one will prove no special shield. The Chinese will come for your job, too.

In this struggle, it is crucial to understand that so-called free trade isn't some lofty capitalist ideal. The U.S. engages in "free trade" with the Chinese because they hold $1 trillion in debt over our heads, an obligation they know we can't pay. We shrink in fear of them. They're world class bullies. They can do whatever they please. And they do. They violate international trade laws by which we abide. That's why their stuff is so cheap. The one factor on which the price difference always is blamed -- labor costs -- is only the tiniest fraction of it.

Labor violations are part of the cheating. The National Labor Committee and others, including reporters from the New York Times, have documented exploitation of Chinese workers that can only be described as modern slavery. We stand in solidarity with these workers and condemn these atrocities that include very young teenagers kept in locked buildings with caged windows where they are forced to labor 14-hour shifts under grueling conditions, but find it impossible to make money or to amass the "exit fee" required to leave. They include children, women, and occasionally men kidnapped and forced to work in brick kilns, coal mines, and sweatshops in the Chinese hinterlands, with no payment other than gruel and a sleeping mat. When Chinese companies treat humans this way, they realize a competitive advantage over American firms that routinely obey humanitarian laws.

China is also one of the most dangerous places in the world to work and live because corporations fail to provide safety equipment for workers, such as dust control devices, and refuse to protect the environment with pollution control equipment. Both practices are profitable for Chinese corporations, particularly when competing with U.S. firms, which must abide by environmental and worker health and safety regulations.

Much more significant, however, are other deliberate Chinese interventions in the market, such as the undervaluation of its currency, subsidization of its manufacturing, counterfeiting, forced transfer of American technology, and refusal to give American companies access to Chinese markets with licensing restrictions, complex regulations and local content rules.

China gives breaks to manufacturers on land, rent, energy and water. Manufacturers may receive bank "loans" they know they're not required to repay. China also exempts certain industries from income taxes and gives tax rebates on exports.

China's deliberate currency undervaluation works as a subsidy as well. The U.S.-China Economic and Security Review Commission explains it this way: "China's undervalued currency encourages undervalued Chinese exports to the U.S. and discourages U.S. exports because U.S. exports are artificially overvalued. As a result, undervalued Chinese exports have been highly disruptive to the U.S."

China cheats. Free trade is a myth. The American worker doesn't need special treatment. We're the most productive in the world. We just seek fair competition. We want fair trade. The USW wants trade rules enforced.

So the union demands it. Repeatedly, we've won cases seeking imposition of anti-dumping and anti-subsidy duties on unfairly traded imports from China to protect our members. There was the glossy paper case in 2007 and the lightweight thermal paper case in 2008. The USW and four U.S. stainless pipe producers won a final order from the U.S. International Trade Commission in February on dumped Chinese welded austenitic stainless steel pressure pipe. Just two months later, the USW joined seven U.S. companies in seeking duties on imported Chinese welded and stainless steel pipes used in oil and gas extraction because of massive Chinese government subsidies.

But it's the tire case that's causing the commotion. That's because the USW filed it under "Section 421," which is supposed to allow the U.S. to combat unfair and damaging surges of particular Chinese imports. China agreed to abide by Section 421 until 2013 in exchange for support from the U.S. when it sought to join the World Trade Organization in 2001.The advantage of Section 421 is that the process is quicker that a typical trade case.

U.S. companies won four Section 421 cases previously, including the McWane Inc. ductile iron waterworks fittings case in 2003, in which the USW testified. The International Trade Commission recommended in the McWane case and the three others that former President George W. Bush penalize Chinese imports. He did nothing -- refusing to protect U.S. industry.

But it's a new day, with a new president. Thus the ruckus. If President Barack Obama adopts the recommendations of the International Trade Commission to use Section 421 to shield American tire manufacturers from unfair trade and preserve American jobs, more cases will quickly follow. That is what China and the corporate profiteers fear.

The USW filed the Section 421 tire case to defend the 15,000 rubber workers who we represented across North America. And we stood alone. No one spoke up for the tire workers. These U.S. workers watched during the past five years as Chinese tire imports increased 215 percent, making China the single largest source of consumer tire imports in the U.S. In that time, 5,000 U.S. rubber workers lost their jobs. Another 3,000 know they'll get the boot by year's end.

America's increased trade deficits with China since it entered the World Trade Organization have cost 2.3 million workers their jobs or job displacements, according to The China Trade Toll by Robert E. Scott of the Economic Policy Institute.

Most were manufacturing jobs, but, among them, Scott reports, were 127,710 professional, scientific and technical services workers. There were 66,986 managers of companies and enterprises. They even included 13,141 arts, entertainment and recreation workers.

Those, by any definition, are white collar jobs.

Who will speak up for you?

Comments

[steelmill]

Why was this post on for one day only,trade is very important

[americaforme]

All this chatter is too little too late. In order to make China play fare, would take a decision that could cause the unthinkable, an out and out war. We're up to our eyeballs in debt, and our grandchildrens eyeball's too. We've been ranting and raving on Huff. for at three years. The congress has done nothing to bring back our industries. Big business bought and payed for our voice in congress. They made us sign up for world class slaves.

[KillTheMessenger]

It is not the function of government to protect failing industries.

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

It has to establish justice.
To ensure domestic tranquility.
To provide common defense.
To promote the general welfare.
And to secure the blessings of liberty.

Nowhere in there does it say that in order to do that the government has to prop up failing industries that are operating more profitably somewhere else.

Actually, since it is almost impossible (no successful cases are known) to fight market equilibria over the long term, the government would act against the intentions of the Constitution if it tried.

Indeed, the government fails. But not because it does not defend a couple thousand iron workers. It fails because our schools are devastated, our health care system does not serve all of the population, the people are not safe against the effects of common life threats like illness and accidents.

What you have here is simply a tiny minority screeming loud because they can.

If the kids in your high schools had an organization like that, the screaming would be so loud that you couldn't sleep. Thankfully for you... they are not unionized and don't have political operatives.

[Jacky Tweedie]

Hmm, last time I checked, Leo was Canadian, born and raised - so not quite sure who is this 'we' he's referring to.

And the last time I saw Leo, he had a bishop, for lordy's sake, blessing him at his installation ceremony as President of Steelworkers.

You read that right.

I stand for workers rights, long history of community service, but this guy? This guy is about perpetuating a little empire of power...to­o bad he just doesn't invest in fact checkers and good ghost writers. The arguments have holes you can drive a (union-built) truck through.

[jsduder]

http://en.wikipedia.org/wiki/Leo_Gerard

Seems to me that Mr. Gerard has a long history of being in the labor movement, (international union usually means arguing for prevailing wages for your members, canadian, american.) As well as being college educated, his credentials seem pretty impeccable to me to be a voice for labor. why are you hating? How's community service standing up for workers rights? What arguments have holes that i can drive my UNION built truck through? tool.

[steelmill]

Leo is telling the truth and doing his job

[Jacky Tweedie]

If USW executives wanted to run honest open elections rather than a mockery of a closed balloting system where nominations are predicated on nepotism; if USW executives did not keep their own employees as casual workers (usu. ~ 5 years); if USW executives did not hamstring their own employees union such that nary a grievance is ever resolved; if USW executives actually promoted equitable, transparent, accountable business practices, Mr. Gerard indeed might be worthy of admiration. Alas, he is simply perpetuating corrupt, opaque, and inequitable practices.

There is a distinction made in my posting between the executive of USW (including the president) and the program officers who work tirelessly under ridiculous conditions to support their brothers and sisters. The majority of them are motivated, professional, and committed (why else work for such an employer?). It's indicative of what a tight reign that organisation is kept under that little is known of the actual working conditions of staff representatives, etc.

The dirty little secret of organised labour. Classic argument for the position that the ends never justifying the means.

My comments stand on the validity of Gerard's 'arguments'.

p.s. community service includes, among other things, working for unions. In my case, I've worked for unions for over 10 years. But not for USW.

[BannedNBoston]

Legalize hemp. The investment in processing equipment will help the steel industry

[humanbeing-rick]

Thank you Leo Gerard for letting us know. This is indeed a very critical issue to address.
Our business leaders have sold out America for a quick profit to themselves.
It is based on pure greed and glut. Their elitist rationale serves no one but themselves.

We need to strengthen the labor unions of America, and fight back against the oligarchy that is selling us out. They are selling out our jobs, our industries, our way of life, and our families all suffer.

I say - Freeze all non-essential imports and all job outsourcing and all immigration until our own economy is rectified.

[greyhound2]

Your right. China donated $32 million to Bill Clinton's 1996 re-election campaign and two weeks before he left office, signed Most Favored Trading Status for China, which allows them to import into the US duty free. The payoff.

China not only imports duty free but engages in currency manupilation, another card. Because of its Most Favored Status, China has become a hub for other Asian countries who sell to China to resell into the US to avoid tariffs.

Tariffs were originally introduced after the American Revolution to protect American manufacturers from the economies of scale and capital of Great Britian. America needs fair trade, not free trade. This time, American workers need protection from our own capitalists of Wall Street who are selling this country down the river. It is only now coming back to bite them in our current economic problems as if people are going to make a living working, they need jobs to work.

[Sinick]

Why don't the unions attack our very own corporations who have sold out our citizens for more lucrative profits overseas? Why don't the unions attack Wall Street for encouraging profits at all cost in deference to welfare of our citizens? Why don't the unions attack our pols who have facilitated this behavior and sat on the sidelines watching and collecting payoffs from these entities?

They are the true villians in this saga.

[Miles Teg]

Ha ha - America the great. While it was pillaging, burning up the environment and spreading the free trade gospel to Africans by hook, crook or legal means it was fine. Suddenly the US notices its imbalance with China and it is cause of concern. If Americans were really serious about a fairer world and this is not just "yellow fear mongering" - (much like Africans cannot even get free trade right they are incompetent, or worse) then why so little about Africa's trade imbalance with the rest of the world including the US (when Africans complain, they are told they are not reading the right literature!). The prescription was free trade - and Africans are even more open to global trade than the rich countries - and like you we know it is the problem. But hey - lets blame the Chinese, this functional illiteracy of the Americans is so uncultured that it must be cultivated further. Oh and the Asian crisis started a whole discussion of Crony Capitalism. But the daylight robbery of Wall Street even against ordinary workers is something necessary and hey the recession is over so why worry?

[rissole]

Excuse me but I think you may be wrong. We let the Chinese do what they want because our super intelligent crooks sent us bankrupt and the Chinese have the money we need.

[KillTheMessenger]

We let the Chinese do what they want because they are over one billion people with a 3500 year real history, while we are nothing but 300 million mostly European upstarts who didn't make it in the old world. We had to destroy the better part of a continent and commit what amounts to a near-Holocaust on its original inhabitants to get to where we are.

And where we are, right now, is absolutely ludicrous in comparison the the incredible amount of natural resources we have wasted to get here. We are inefficient, care nothing about our own, we are greedy, shortsighted and care nothing about the facts. Science made us rich and we stopped teaching our kids simple arithmetic.

And unless we work as hard as the Chinese to make the future happen instead of drinking beer in front of our big screens while some mediocre wannabe singer pretends to be the next American "Idol", there will be no future for us. We are dumping ourselves into history's waste bin as we speak. And what a slam dunk it is shaping up to be.

[billyfromphilly]

Lexapro didn't for for me per se, but you might wanna give it a shot. Not that you're wrong. But the ultimate defeatist attitude won't change anything. There's a lot of good to go along with the lot of bad. Like Ray said at the end of Ghostbusters II, we just need to find a way to mobilize it.

[KillTheMessenger]

Martin Niemoeller was a Christian Pacifist who experienced Nazi prosecution in the concentration camps for eight years. He was a man who went through hell for his beliefs and who worked for the rest of his life to make up for some of the crimes he felt he was responsible for morally.

To cite him in an article about non-competitive industries is highly questionable. I understand you are having grievances, but all of you would take them any day over what the people in the camps went through every hour.

I am sorry. I was not sympathetic to your cause to begin with. But the quote stopped me cold.

[stack]

And, of course, you won't be sympathetic to the cause until they come for your job.
Too late then.
Mr. Niemoeller's point.

[drkazmd65]

Ya beat me to it stack,.... It's the "I got a good job,.. what are these guys complaining about?" attitude hanging over from the "Me" generation of the 70s & 80s.

[KillTheMessenger]

If you happen to read my other posts, you will find that I know perfectly well that the Chinese are educating their kids way better than we educate our own. But unlike you I am not partial. If a Chinese kid learns harder than an American kid, I think it's just fair that the Chinese kid gets to earn more money after they graduate.

I can't help it... I just happen to believe in meritocracies. If they scare you, maybe there is a reason for that?