District 7 News

AGITATORCovering the United Steelworkers in Indiana and Illinois - MAY 2009 - #33

OnOn thethe marchmarch inin GraniteGranite CityCity photo: Doug May Steelworkers, Hip-Hoppers and Tree-Huggers Get It On at 'Green Jobs 2009' By Carl Davidson an economic crisis. Hill to lobby their respective Senators and When you walk into a Washington, DC hotel The building trades were also represented, and Representatives. With remarkable serendip- lobby and find thousands of people-half in the green groups spanned a wide range of con- ity, the Senate was deadlocked that same day labor union jackets, the other half dressed in cerns, from toxics to alternative energy to cli- over details of the Obama stimulus package, 30-something hip-hop causal-you know some- mate change. Also notable was the participa- with the GOP trying to gut many of the Green thing is up. tion of a contingent of "high road" corpora- Jobs components as "wasteful," while seek- This was the scene this Feb 4-6 as nearly 3000 tions rooted in the growing "green economy." ing tax cuts and bailouts for the rich. The activists and organizers gathered for the Gamesa, a major Spanish firm specializing voices and pressure from the conference ac- "Good Jobs, Green Jobs" National Confer- in wind turbines, and Piper Jaffray, a large tivists come not have been timelier. ence. paper company focused on recycled paper "A trickle has become a torrent,' said Margie It's called the "blue-green alliance," and its products were there. Alt from Environment America the next morn- core is the United Steelworkers and the Si- But a critical new dimension was added by ing, comparing their present efforts with the erra Club, which jointly launched the "Green Green For All, an organization rooted among organizing and direct action campaign of the Jobs" movement in Pittsburgh a year ago. inner city youth, and led by Van Jones the au- civil rights movement. There are two paths thor of "The Green Collar Economy.” in repowering America with clean energy, she The turnout this year was triple in size and explained. "One would have us chase short- highly energized by both the victory of Presi- The conference started with 'Advocacy Day,' term profits; the other has us moves toward dent Barack Obama and the looming onset of which deployed the participants to Capitol new public transit and plug-in hybrid cars, built in the USA and powered by the sun and the wind. Only the second puts us back to work. Alt warmed up the session for Richard Trumka, the AFL-CIO's Secretary-Treasurer. Trumka was a hero to millions in the Obama campaign for the no-nonsense way he took on the question of racism in rallying trade union organizers to win over white workers to vote for a Black candidate in the Appala- chian areas. The Blue Green Alliance is a strategic partnership between four international Unions "What a year!" Trumka proclaimed, referring and two environmental organizations. It began in 2006 as a partnership between the not only to the election, but the Blue-Green United Steelworkers and the Sierra Club. Last fall CWA, SEIU, the Laborers Inter- Alliance's growth since Pittsburgh. "It's national, and the National Resource Defense Council came on board as partners. The brought forward all the issues of race and Blue Green Alliance is uniting more than six million people in pursuit of good jobs, a class, and there's no going back. Good ideas clean environment and a green economy. and loud voices are desperately needed. In the mines, we were often told, jobs or the en- Blue-Green Indiana vironment was the choice. But now we know LABOR CLIMATE PROJECT the truth. It's not one or the other; it's both or Blue-Green Indiana is a chapter of the national The Labor Climate Project arm of the Blue neither. So get over it! This blue-green alli- organization made up of the same partners Green Alliance educates local union members ance isn't going away. We're in this together plus Hoosier environmental groups such as about the dangers of global warming and the for the long haul." Save the Dunes Council, and other state la- solutions that will help both the environment Trumka had warm praise for Obama, but a bor unions. Four other states have BGA’s and create good green sustainable union jobs. sharp rebuke for the GOP Right. "All they can (Kansas, Minnesota, Ohio and Wisconsin). Too many union members believe that the do is say, No!-No to fair trade, no to the Em- When did the Indiana BGA form? issues of the environment are at odds with ployee Free Choice Act, no to protecting the The group announced itself at a press confer- issues of labor. In fact, the opposite is true. In environment, no to domestic investment in ence on March 22, USW Lobby Day. Then this fight we have a common enemy and that new manufacturing. In the face of this, we for the first time, USW members lobbied their is large corporations whose interest is their have no guarantees; we'll get nothing here representatives to support a state Renewable bottom line — often at the expense of without a fight." Energy Standard (RES) through legislation environmental and labor standards here at Expo Booths at Green Jobs 2009 home and abroad. called “Green Jobs Act of 2009” One topic discussed was the theme of the con- Did the legislation pass? Labor unions have always fought for ference, "What is a Green Job?" and "What environmental safety for our members, in their A strong Green Jobs Bill designed to stimu- is a 'Good Job'?" The later was easily defined: worksites and communities. In this economic a good job was a union job, a living wage late the manufactur of solar and wind com- recession, now is the time to bring the message ponents, as well as thousands of other good with decent benefits. Green jobs were viewed of global warming solutions and job creation from a number of angles. Trumka defined it jobs in transportation, installation, etc.—was to union members. passed in the Indiana House, a first. Unfortu- as every job that contributes to a low-carbon nately, the bill died in conference committee The Blue Green Alliance has developed an future. Nuclear power and 'clean coal' efforts and Indiana remains the only Midwest state educational presentation for local unions. might come under that, but would be opposed without a renewable electricity standard. Contact Tom Conway at 219-738-9029. by a good number in the coalition. There was no effort, moreover, to enforce unanimity on announce to you today that we no longer do." allies. It brought Van Jones to the stage. the point; debate and discussion would con- Some of the most powerful presentations came "We started this because we were tired of go- tinue. There was wide agreement, however, on the last day. First up was Winona LaDuke, ing to funerals," Jones began. "We were tired on the Green jobs most in reach of unem- member of the Ojibwe (Chippewa) Tribe liv- of police killing kids, and kids killing kids." ployed youth: solar panel installations, 'win- ing in the White Earth Indian Reservation in These were rooted in the oppression of the in- terizing' older housing stock to Green standards, Minnesota. ner city's joblessness and hopelessness, he ex- urban agriculture plans, and expansion of mass plained and described initial work with the Ella transit. After greeting the crowd in her traditional lan- guage, LaDuke proclaimed with a smile, "I must Baker Center to fight for home repair and The conference planners stressed the issue in a admit it's a treat to come here from Minnesota cleanup jobs, and called it "Green Jobs, Not booklet distributed to all attendees, entitled to the home of the Great Black Father!" which Jails." Later the concept deepened into major "High Road or Low Road? Job Quality in the brought down the house. structural reforms described in his book, "The New Economy." Terence O'Sullivan, president Green Collar Economy." But she quickly turned serious, and the need to of the Laborer's International Union, exposed break with a petroleum-centered economy. "We "This is a profound movement that goes deeper the problem: can't build a society based on conquest. We are than installing solar panels," Jones went on. "We did a survey of every job cur- This is showing the world a new America.... But rently being called 'Green' by em- no change can come in one day. We ployers, and found the majority of have to work every day. We have to them didn't pay enough to support a change the economy, not just with family of two." There was no The clean energy movement can't green proposals, but with solidarity sustainability, he suggested, without be stopped, and labor is the pillar back in the center of it. We have to the working class itself being sus- of the whole pro-democracy move democracy from the ballot box tained. Borrowing from Henry Ford, to the workplace. We are the human he said, "Every worker building a movement we need." - Van Jones family coming back to itself. Think Green product should be able to af- long and hard on this question: in ford a plug-in hybrid car. It's very the final hour, who are we? Who are possible to build green, pay union we on this planet? Are we a swarm wages, and still make a profit. There's no car- addicted, and like addicts, we hang out with of locusts, devouring everything? Or are we ing for the Earth that doesn't also include car- dealers and do bad stuff. Our people lived in a honeybees, building together and adding to ing for the people on it." green economy on this continent for nearly life?" Labor, government and business could be part- 30,000 years, and knew how to live within their "This is our world historic moment, am I right, ners, O'Sullivan explained further, so long as means." She also took aim at the nuclear indus- brother steelworkers?" Jones said gesturing to the focus was "good jobs, at a living wage and try, noting that two-thirds of uranium was mined Richmond. "The clean energy movement can't the prevailing wage." The dynamic union leader, on Indian lands, and all of the proposals of be stopped, and labor is the pillar of the whole whose union represents some 500,000 build- where to store hazardous nuclear waste were pro-democracy movement we need." To the ing trades workers, stressed that "low road busi- Indian lands as well. "In what was the largest Green For All youth, Jones added, "You are nesses and policies must not be rewarded....This uranium mine in New Mexico, they've now Ground Zero in this fight. To green the planet, fight isn't over; it's just started. The Republi- build three prisons. How's that for a future?" we must green the city, and there's no greening cans can't lead us anywhere; they couldn't find For a Green solution, she pointed out that In- the city without greening the ghetto. This is a the supposed weapons of mass destruction in dian lands were also "the windiest and sunni- movement that let's you rise! Iraq, and today they can't find even a trace of est' places in the country, and welcomed wind Jones was adamant on the need to organize and the first half of $700 billion given to the banks turbines and solar collectors, "but we want lo- mobilize at the base, to go back to the union on Wall Street." To tremendous applause, he cal ownership and control" as part of the pack- halls and neighborhoods, and speak to all those concluded by saying "No retreat, no surrender!" age. not yet involved. He was warmly supportive of and that a "workers revolution" had to be paired Fred Richmond of the steelworkers spoke next. Obama, and the need to back him up. "But there with the "green revolution." "Feel the spirit of our sister, Winona LaDuke! will be times to push him, and times to be a A workshop on capital investment strategies, Feel her passion for this land, as opposed to few steps in front on him." discussed Ontario's Algoma Steel, one of the those global corporations with no loyalty to any- The question of war and militarism was brought largest worker-owned co-ops in North America, one apart from themselves!" front and center by Rev. Lenox Yearwood who now thriving after a worker buyout assisted by Richmond went on to give a history of how the is president of the Hip-Hop Caucus and a min- venture capital and government funds. Fred blue-green alliance started with the USW and ister. Formerly an Air Force officer and chap- Richmond, USW International Vice President, the Sierra Club. "We both came to understand lain, he raised a ruckus when he delivered a presented the example of his union's coopera- that we cannot get good jobs without a clean sermon to the Joint Chiefs of Staff entitled, tion with Gamesa, a Spanish firm specializing environment, and that we can't get a clean en- "Who Would Jesus Bomb?." in building wind turbines. One mill has been vironment without good jobs. We both needed ""No War, No Warming!' is a slogan that has to recently reopened in in Eastern Pennsylvania, unconventional allies to fight the low road's link our struggles," said Yearwood. "This is and another is underway in Western PA, creat- worldwide race to the bottom." Speaking about our generation's lunch-counter moment. One ing 1000 new USW jobs. decades of fathers and grandfathers killed and hundred years from now, not of us in this room James Hoffa of the Teamsters explained that the poisoned in the mills, he ended with "We need will be here; but we have to make sure the planet blue-green alliance started in the streets of Se- to take our planet back!" will still be inhabitable for our children and attle in the massive street battles of "Teamsters Now it was time for Green For All, which fired grandchildren. Organize everywhere, mobilize and Turtles" on one side, and the World Trade everyone up with the Hip-Hop video, "Green everyone, and lift up all! Power to the people!" Organization and the police on the other. "You Anthem 1," (available on YouTube) a powerful Carl Davidson writes for "Beaver County Blue," a learn who your friends are," he declared, 'and portrayal of the entry of multicultural youth into website anchored in Western Pennsylvania. He is also you learn a few things in the process. We origi- the mix of "unconventional" but very natural a member of the U.S. Solidarity Economy Network nally supported drilling in ANWAR. I'd like to (http://ussen.org) Local 1010 Hosts ArcelorMittal World Safety Day EAST CHICAGO IN: Remarks by Tom Hargrove: “As a member of the ArcelorMittal Global Health & Safety Group, I have seen first hand safety improvements around the world. I have also seen our shortcomings. Workers’ safety has no borders. Last June, a global safety agreement setting minimum standards and joint safety commit- tees around the World was signed by L. Mittal for ArcelorMittal and Leo Gerard for the United Steelworkers, the International Met- alworkers Federation, European Metalwork- ers Federation, and the Brazilan union Cen- tral Única dos Trabalhadores (CUT) also USW L.U. 1010 Tom Hargrove photos: Jim Spazoff signed. The Global agreement is a very good docu- ment, but in most locations, the problem is getting it applied on the shop floor. Our Joint Committee visits have taken us to Kazakhstan, Brazil and Mexico. In June we will visit Romania So far this year, we have had 10 fatalities world wide. None in the USA. We must do more each and every day in the PHOTO LEFT: Laying a rose at the workers me- USA, and around the World, to make our morial in the 1010 hall is Jerry Scherwood, plants safer by removing hazards.” sister in law of Tony Parker who was killed in the mill in 2004. SOAR - Fighting For Health Care For All

A bus load of South Chicago SOAR members from Chapter 31-9 joined hundreds at a rally at St. Augustine Col- lege on Chicago’s North Side in sup- port of President Obama’s health care reform plan on April 18th. The rally was called by Citizen’s Action and Health Care for America Now. Many different unions participated along with the USW and SOAR. Congresswoman Jan Schakowsky (D- Ill) was the main speaker. She noted that she is an original co-sponsor of HR-676 the single payer Medicare for All Act, but said that passing the Obama plan with a strong public option was a criti- cal first step towards even greater health care reform like HR 676. Schakowsky called for unity of all fighting for health care reform. She also praised the labor movement for its leadership in the fight for comprehensive health care reform. -by Scott Marshall Workers’ Memorial Day Madison County IL

ABOVE: Workers’ Memorial statue in silhouette in foreground at candlelight ceremony. PHOTO RIGHT: States Attorney Bill Mudge

ALTON IL: The Greater Madison County Madison County (IL) States Attorney Bill (IL) Federation of Labor held their annual Mudge was the keynote speaker (photo lower Workers’ Memorial Day observance at their right). His comments focused on the need Several states have taken similar actions in monument in Gordon F. Moore Park in Alton, for greater enforcement of health & safety recent years, placing employers and IL. Among those remembered was regulations in the workplace - including supervisors on trial for their roles in

Steelworker Brother Jeff “J.T.” Pace LU 3643 criminal prosecution. workplace accidents and deaths. GAINES GARY PHOTO: who was killed on the job at Alton Steel. Decatur IL Workers’ Memorial Day PHOTO LEFT - Trades & Labor Presi- dent, Bill Franisco, Il- linois Governor Pat Quinn in middle, Illi- nois AFL-CIO Presi- dent Micheal Carringan And Mayor of Decatur, IL.

RIGHT - Illinois Governor Pat Quinn

photos: Andy Clark Denny Leazier USW L.U. 903 rallies the crowd on the importance of Buy American provisions in the stimulus bill. Steelworkers Rally Fort Wayne to “Buy American”

FORT WAYNE IN - April 21, 2009 - The the city purchasing personnel is already dili- council to act in a “concerted effort to encour- Fort Wayne City Council voted to “Buy gent about buying domestic goods, a future age the purchase of locally and American American” with the Federal Stimulus funds change in personnel may bring a different set made product” was unclear to her as she ex- coming to the area. Members of the plained that: “I don’t know what United Steelworkers, the Alliance “I don’t know what a concerted effort is or what a concerted effort is or what buy- for American Manufacturing and ing a local product means”. buying a local product means.” - allies had been working with the A series of “Rebuild America” city council for 3 weeks in order to Rallies have been occurring at the drive home the need for its constitu- Liz Brown, Republican at-Large who voted against the Buy American provision Allen County Courthouse in Fort ents to see that the council supports Wayne for months to reinforce working families in the area. USW the need for Fort Wayne city Local 715L Rapid Response Coor- council to support area workers and to drive dinator Charlie Odier spoke at several coun- of priorities to the job. The only opposing vote home the message to “Keep it Made in cil meetings on behalf of Northeast Indiana was from Liz Brown, Republican at-Large America”. workers. Denny Leazier, president of USW serving her first term on the council. A sec- photos: Rachel Bennett Steury Local 903 and President of the Fort Wayne tion of the resolution, which called for the Union Label and Service Trades Council also addressed the council. Additional representatives from USW Local 7-304, USW Local 715L, the Iron Workers Union, La- borers Union, and the Alliance for American Manufacturing also spoke with council members about the im- portance of domestic manufacturing. The resolution, R-09-04-08, intro- duced by council members Goldner and Hines encouraged the Fort Wayne Board of Works, the Fort Wayne Department of Purchasing and Mayor Tom Henry to use the money designated for Fort Wayne on American iron, steel and manufac- tured goods and services. Council- man Tom Didier explained that while Union members from UAW Local 2209, and USW Local 634L Georgia Pacific Wheatfield workers battle for two years to achive first contract

VALPARASIO IN - Union activists from across the region rallied outside a local ho- tel as Georgia Pacific workers met again with the company and a Federal Mediator to bargain a labor agreement. The workers’ perserverance paid off. At the end of two days of bargaining and media- tion, the Company finally moved off of wage concessions. On April 29, after two years of bargaining, the workers ratified their first labor agreement, most seeing it as a small first step toward fairness and im- proved working conditions at GP. One day later, the National Labor Relations Board moved forward on the Union’s charges and issued a complaint on behalf of Brian McIn- tosh and other illegally disciplined work- ers. As of this writing, the Board has also blocked any further action on a decertifi- cation petition filed by some workers at GP who were tired of the long fight for justice. We salute the Georgia Pacific-Wheatfield workers for their steadfast support for their bargaining committee and their achieve- ment of their first contract. Their story is a perfect example of why we need to change the law NOW. Nobody in America should Buril Smith L.U. 9231 have to go through what they did to get Brian McIntosh, (above) addresses the Too Long!” and called for swift passage union representation and a labor agreement. crowd outside the Georgia Pacific- of the Employee Free Choice Act. A del- We hope that by the next issue of this pa- Wheatfield/USW negotiations in Valpo on egation of union and community activists per we will report that “Mac is Back” and March 31. The NLRB has recently issued then delivered a petition to Management, that the new GP union has elected their first a complaint against the company for ille- demanding an immediate settlement to officers! gally firing McIntosh. About 100 people the 2 year ordeal. chanted “Bring Back Mac” and “Two Years,

PHOTO BELOW: Tom Perez, a member of the bargaining committee. Put an End to the Abuse of Workers’ Rights We Experienced at Georgia Pacific- Wheatfield!

In 2007, Indiana Senator Evan Bayh was ployers for secure jobs, health care and a co-sponsor of the Employee Free Choice retirement benefits and fair pay. It’s time Act. But now he is witholding support. to rebuild the middle class and help strug- Call Sen. Bayh and ask him to co-spon- gling working families.” For more info: sor and support the Employee Free Choice www.EmployeeFreeChoiceAct.org Act Call Toll Free: 1-866-207-2060 Use your own words, but here is a sample Ask Evan Bayh why phone message: he’s not supporting the “Please co-sponsor and vote for the Em- ployee Free Choice Act. In these perilous Employee Free Choice economic times, we must restore work- Act ers’ freedom to bargain with their em- photos: B. Carey DeKalb County IN Public Officials Back Buy American Indiana Senate, H by Rachel Bennett Steury INDIANAPOLIS, IN. - The United Steel- workers (USW) applauded the Indiana Sen- ate which pledged to “Buy American” by vot- ing unanimously in favor of a resolution in support of American workers on April 24. Introduced by Sen. Vi Simpson (Bloomington), with co-authors Sens. Den- nis Kruse (DeKalb, Allen), and Randy Head Left to right: Rachel Bennett Steury (AAM) John Jones (634L), Dave Kobiela (903), Butler (Cass, Fulton, Kosciusko, Miami, Pulaski and Mayor Coburn, Auburn Mayor Yoder, Tom Emerick (9463), Deb Steury (634L), Charlie Odier Wabash), Senate Resolution 37 made its way (715L), Steve Kuffer (UAW 164) (not pictured is Mayor Wiant from Garrett, IN. from the Tax and Fiscal Policy Committee to AUBURN IN: March 26 - The Mayors of unanimously to pass the Buy America Reso- the Rules and Legislative Procedures Com- Butler, Garrett and Auburn Indiana signed lution. The Garrett Council was the first in mittee to its’ final stage on the Senate floor. USW Buy American Resolutions during a DeKalb Co. to adopt the resolution, with Au- USW members from around the state, along roundtable meeting. John Jones L.U. 634L, burn, Butler and the DeKalb County commis- with field coordinators from the Alliance for Dave Kobiela SOAR L.U. 903, Charlie sioners yet to vote. USW Local 903 Retiree, American Manufacturing (AAM) have been Odier L.U. 715L and Tom Emerick L.U. SOAR member and Garrett resident Dave working for Senate passage since its introduc- 9463 took the lead on this event and really Kobiela worked with the council to explain tion on March 10th. The Indiana House in- did a tremendous job of bringing reality to the reasoning behind the resolution. troduced and passed its Buy American reso- the mayors of DeKalb County. In attendance City Councilman Tom Blotkamp, a former lution on the very same day in March. were folks from local union shops (USW, International Harvester UAW member, also Multiple visits to the Statehouse, where hun- UAW) and non-union shops (New Millenium met with Mr. Kobiela and was instumental in and Nucor). Also present were small business dreds of union workers called on their legis- helping to educate his fellow council mem- lators to support the resolution, reinforced the owners, laid off workers, those on short weeks bers, leading to their unanimous vote. Mr. and those about to lose their jobs; from fac- need for Hoosiers to have their elected offi- Kobiela thanked the Council for their vote to cials help working Indiana. tories to tech jobs. support “...putting the taxpayer’s money All this good work paid off when on Tues- where it will do the most good for those you “We are pleased the Indiana Senate and the day May 5, the Garrett City Council voted represent”. House join the growing number of states to support working families,” says Jim Robinson, USW’s District 7 Director. “It is District 7 hard at work on Maryville IL is on board important for American workers to know their Buy American resolutions legislators will use their collective power to demand American-made iron, steel and manu- Since the American Recovery and Reinvestment Act was passed in February, Local Union leaders, SOAR factured goods be used in a time when un- activists, Women of Steel and Rapid Response Co- fairly imported products have flooded our ordinators, as well as representatives of the Alliance markets and have sent thousands of Steel- for American Manufacturing (AAM) have taken the workers to the unemployment lines.” “Buy American” resolutions ball and run with it. “Most Senators were very receptive to the We’ve run all over District 7 and convinced School personal stories of lay-offs and downsizing Boards, City Councils, County Commissioners and that their constituents described at the state- Mayors to publicly commit to using Federal stimu- house,” says Rachel Bennett Steury, field co- lus funds for American-made products in order to ordinator for the AAM. both save and create U.S. jobs. “It would be hard not to feel compelled to act In Indiana, “Buy America” resolutions have passed (usually unanimously) in: Auburn, Boonville, But- when thousands of Indiana workers all have ler, Dyer, Chesterton, East Chicago, Elkhart, Evans- the same story and come to you for help. Sena- ville, Fort Wayne, Garrett, Gary, Hammond, High- tors Simpson, Kruse and Head made a dy- land, Howard County, Indianapolis, Jasper, Knox, namic bi-partisan team to move the resolu- Kokomo, LaPorte, Lafayette, Logansport, Lowell, tion in the right direction.” Merrillville, Miami County, Michigan City, Jeff Rains left receives the signed Buy American The resolution, calls on the Senate to: Mishawaka, Porter, Starke County, Tippecanoe resolution from Larry Gulledge, Mayor of County, Valparaiso & Winchester! Maryville. Maximize the creation of American jobs and In Illinois, we had victories in: Alton, Cahokia, restore economic growth and opportunity by Fairmount, Granite City, Madison, Madison County, spending economic recovery plan funds on Madison and Pontoon Beach. Jeff Rains, field coordinator for AAM [Alliance products and services that both create jobs Our resolution passed the Indiana House in March for American Manufacturing] and Dennis and help keep Americans employed. and the Indiana Senate in April. Barker attended the Maryville, Illinois City Commit to purchasing only products and ser- Council meeting March 18th where they unani- vices that are made or performed in the United Congratulations to everyone. For more info see mously passed the USW Buy American Reso- makeourfuturework.org or contact Robin at 219- States of America whenever and wherever lution. 881-6224 possible with any economic recovery monies House Support Spending Stimulus Funds Domestically provided by the American people. Commit to publish any requests to waive these procurement priorities so as to give Ameri- can workers and producers the opportunity to identify and provide the American prod- ucts and services that will maximize the suc- cess of our nation’s economic recovery pro- gram. Indiana is slated to receive approximately $4.3 billion dollars from the ARRA funding. At a time when the unemployment rate in the state has topped 10 percent, spending the funds domestically would put more Hoosiers back to work providing steel and iron and manufactured goods needed to rebuild the state. According to the Bureau of Labor Statistics Indiana has lost 71,100 manufacturing jobs since March of last year. A recent University of Massachusetts study finds that infrastruc- ture investment could create as many as 18,000 jobs for every $1 billion invested. The Indiana House passed a similar Buy American resolution (HR 0035) in March with unanimous support. Spearheaded by Speaker other local governments including Gary, Fort U.S. tax dollars are kept at home to create of the House Patrick Bauer (St. Joseph Wayne, Kokomo, Evansville and Indianapo- good jobs at home. County), House Majority Leader Russ Stilwell lis, Indiana. USW members have introduced For more information about “Buy American” (Warrick, Spencer, Perry and Dubois Coun- more than 1,000 resolutions across the coun- and the USW’s economic renewal campaign, ties), and Representative Charles Moseley try and are working hard every day to ensure visit www.makeourfuturework.org. (Porter County), passage of the resolution was met with cheers and applause from the over Come join with Steelworkers as we 400 Steelworkers who visited the statehouse Ten murdered, 105 injured for union celebrate the memory of the 10 that day in support of putting Americans back representation at Republic Steel brave men who died in the struggle to work. for union representation. Recent polls by Pew and Harris Interactive In 1937, without a union, steel show that more than 80 percent of Americans MEMORIAL DAY workers made $.47 an hour for a support “Buy American” provisions. May 30, 1937 twelve hour day, no vacation time, So far, more than 400 “Buy American” reso- no insurance, no pensions. Today, lutions have been passed around the nation unions offer a better life with fair by cities, states, towns, boroughs, villages and wages, pensions, insurance, and vacation time. The Employee Free Choice Act makes union jobs more available to workers and leads to restoring our economy and raising our standard of living.

CELEBRATE, ORGANIZE, AND REMEMBER: WHEN: SATURDAY MAY 30, 2009 2:00PM WHERE: MEMORIAL HALL 117 & AVENUE “O”, CHICAGO LEFT: Mike Mitchell (AAM), Sens. Randy Head, and Vi Simpson who were authors of the SPONSOR: STEELWORKERS resolution, and Chris Lovitt (AAM). Not pictured ORGANIZATION OF ACTIVE is Senator Dennis Kruse, the third author of the RETIREES resolution. Speakers, refreshments, music 773-646-0800 ON STRIKE - MEANS GATE CLOSED

Preparation for street blockade

March to the plant gates

The Red and Black flag is the symbol for on strike Scenes from a strike Cananea Mexico

Los Mineros, the metalworkers union in Mexico has been on strike for 20 months against their employer, Grupo Mexico’s attempt to destroy their union. Dis- trict 7 has been active in support of brothers and sisters in Cananea. As evidenced by the photos, they are an organized and determined group. Thanks to Blanca Morales for keeping in contact with the Women’s group in Cananea and passing on the pho- tos. Mass picketting

Balloon release

Union meeting

District 7 solidarity visit - Lazaro Cardenas

Picket captains meeting Put America Back to Work rally draws 5,000

photo: John Logan February 10, 2009: Paper mache puppets of Barak Obama and Joe Biden joined 5000 steelworkers from Granite City IL during their Put America Back to Work March

photo: Doug May The evil banker brigade continued their efforts to bury the middle class under six feet of credit default swaps. Returning to the role he owned on Broadway was Dennis Barker as “Wall Street”, menacingly evil was Mike Fultz as “AIG” Toby Keller as Citi-Corp brought new meaning to the word Greed, Walt Winter as “Bank of America” prepped for the role by repossessing wheel chairs and Floyd Watson as Bear Stearns is not in the photo as he was arrested before the march trying to pickpocket an orphan.

GRANITE CITY February 10, 2009 - Five in the community," he said. "We feel very Southwestern Illinois Central Labor Council, thousand steelworkers thronged the streets of positive about the turnout and the message Ironworkers (East St. Louis), Quad City Ministe- Granite City to bring attention to the crisis we think the turnout sent to Congress about rial Alliance, Chamber of Commerce of South- brewing on Main Street as Wall Street gets the need to pass a stimulus bill immediately." west Madison County, Jobs with Justice, Egyp- tian Building Trades, United Congregations of billions in bailouts. The workers directed their A partial list of sponsoring organizations of the anger at the financiers who precipitated the Metro East, Steamfitters Local 439, Piasa Pali- “March To Put America Back To Work” in- sades Group of the Sierra Club, SIUE Raise Your current crisis by engaging in casino capital- cluded: United Autoworkers, Illinois AFL-CIO, ism as the expense of the majority of working Voice Student Organization, Illinois Federation Greater Madison County Federation of Labor, of Teachers Local 743 and Steamfitters Local 268. Americans.. To drive home the point, several steelworkers dressed as bankers in their black suits marked with the words "AIG" and "Bank of America"

and carried a black coffin marked "American Rich Robin Middle Class." Attending the march was Dan McDowell, a Granite City alderman and a member of the congregation at Third Street Baptist Church in Granite City. He said the church's food pan- photos: John Logan, try has been busy since the layoffs. "We're very hopeful," he said. "We have a president who I think recognizes how bad it really is, and being from Illinois, he could be the one to make a difference." Dave Dowling, USW Sub 2 director said the turnout for the march exceeded organizers' ex- pectations. "We just knew there was a lot of enthusiasm Purdue Organization for Labor Equality celebates university’s cancellation of contract with anti union supplier WEST LAFAYETTE - Purdue University versity – in condemning Russell Athletic’s announced its decision to terminate its licens- systematic disregard for workers’ rights. ing contract with Russell Athletic effective Russell has shown time and time again its March 31 due to anti-union actions surround- refusal to respect these basic standards of ing the closure of two factories in Honduras human rights. Its actions have violated not – a decision which has been urged by the only Purdue’s Code of Conduct, but also Purdue Organization for Labor Equality Honduran and International law. POLE is (POLE) for several months. POLE com- demanding that Russell reopen the the mends the University for acknowledging these Jerzees de Honduras factory with all ter- disturbing violations to Purdue’s Code of minated workers rehired at full capacity, Conduct for Licensees and taking action to provided back pay since their termination, resolve them. We will continue to support Uni- and allowed to freely associate and estab- versity actions which protect the rights of lish a union without interference. workers around the world to live and work with freedom and safety. Since 2000 POLE has consistently organized around issues of labor equality and workers’ Lafayette IN Rallies rights through teach-ins, informational fo- rums, co-hosted events with allies, media ac- tions, rallies, and even a sit-in and 27-day for Buy American hunger strike in 2006. This past Thursday rep- resented the first time in over nine years that Purdue University has taken constructive ac- tion to uphold our Codes of Conduct For Licencees and protect the rights of the work- ers who produce our apparel. Purdue joins ten other universities – includ- ing Cornell, Penn State, and Columbia Uni- LAFAYETTE IN: - USW L.U. 115A and Bar Association bestows Liberty supporters gathered at Riehle Plaza before Bell Award to Norma Gaines marching to and around the Tippecanoe MADISON COUNTY IL - May 1, 2009: County Courthouse in downtown Lafayette. The Madison County Bar Association PHOTO RIGHT: Wayne “Crash” Dale re- honored steelworker Norma Gaines for her minds the crowd that the official unemploy- lifelong activism in the community and ment rate in Indiana is above 10 percent and organized labor. Norma serves as Co- the point of the Recovery bill is supposed to Coordinator of the District 7 “Women of stimulate job and economic activity here so Steel”. They adopted the Phoenix Crisis Buying American ought to be a no-brainer. Center, a shelter for abused women and their State Rep. Sheila Klinker also addressed the children in Granite crowd. City. Yearly photos: Gerald Miser performances of Eve Ensler’s stage production “The Vagina Monologues” under Norma’s leadership, has raised nearly $50,000 for the Crisis Center.

“The Liberty Bell Award is presented made annually to a non-lawyer who promotes better understanding of the rule of law, encourages greater respect for law and the courts, and stimulates a sense of civic responsibility. The Liberty Bell Award was established more than thirty years ago. Prior recipients include Senator Evelyn Bowles, Margarette Trushel (Director of Oasis Women’s Center), and past IL AFL-CIO President Margaret Blackshere and other community leaders.” 14 District 7 News Agitator LOGANSPORT IN: A group of steelworkers gather outside the local Walmart store to demonstrate that we as Americans need to try and buy American products whenever we can. Walmart is notorious for demanding that suppliers move their operations to China to take advantage of low wages and lax safety and environmental standards. Not in photo: At an earlier rally, State Senator Randy Head and Logansport Mayor Mike Fincher gave inspiring talks.

Buy American message warmly received in photos: Steve Hartoin Logansport IN

Steelworker receives George Meany Award PHOTO BELOW: Standing next to USW local 3261 President Kevin Cooper and Bill Scales, Congressman Joe Donnelly DECATUR, IL: Dave Salogga, L.U. 7-838 shop steward, was pre- address the sidewalk rally sented the George Meany Award on February, 26, 2009, in a ceremony conducted at Decatur Trades and Labor Assembly’s February meeting in Decatur. The presentation was made by Amy Girardi, Re- source Director for the Illinois AFL-CIO, who cited Mr. Salogga for over 8 years of volunteer leadership for his work with the Lincoln Trails Boys Scout Council. The award, a recognition approved by the na- tional AFL-CIO Executive Council, gives or- ganized labor an opportunity to recognize members for their service to youth, and also makes the public aware of the important role union members play in the community. Steelworkers protest im

Steelworkers at US Steel’s Granite City Works were outraged when they discovered that a new pipeline being of steel used for this kind of pipe and ship it to Lone Star Steel in Texas to be made into pipe. The Gran the pipe is being shipped into the Port District facility in Granite City on rail cars and then onto truck

GRANITE CITY IL: The staging of a train load of im- ported steel pipe was too much for over 1500 steelworkers who used the occasion to point out the effects of our failed trade policies and to bring heat on the politicians in Wash- ington to enforce the Buy American provisions of the re- cently passed stimulus bill. A “Buy American” clause tucked in the nearly $800 billion stimulus package President Barack Obama signed in Febru- ary requires the use of U.S. iron, steel and other manufac- tured goods for public buildings and public works funded under the bill. But the clause does not apply to private projects such as the 2,148-mile, $5.2 billion Keystone Pipeline that, when com- pleted by Alberta-based TransCanada and ConocoPhillips by the end of this year, will send Canadian tar sands crude oil from Calgary to southwestern Illinois.

photo: Dennis Barker mported steel in IL

photos: Doug May

built from Canada to IL was using pipe made in India. Members of Locals 50, 68 and 1899 make the same type nite City and Texas facilities are completely shut down due to the economic crisis. To make matters worse, ks to take it to the work site. The Port District facility was created to help the local economy.

Buy American Message Shouted From Kosciusko County Courthouse

Thanks to writers and photographers of this edi- tion of the AGITATOR : Gary Gaines, Robin Rich, Jim Spazoff, Ray Jack- WARSAW IN: One of the many “Rebuild America: Main Street Revolution” rallies was held at the son, Blanca Morales, Kosciusko County Courthouse, in Warsaw IN Dennis Barker, Doug May, Andy Clark, Steve The Steelworkers organized these rallies to support spending U.S. tax dollars on U.S. products; investing tax dollars in U.S. manufacturing and infrastructure jobs; developing incentives to create Hartoin, Scott Marshall and retain U.S. jobs; and making it easier to unionize. Rachel Bennett Steury, Members of the United Auto Workers and labor-affiliated group Jobs With Justice also participated Norma Gaines, Charlie in the rally. Averill and John Logan. photos: Charlie Averill suffer without propermedicalcare. ing ofthemoralinjusticeservedtothosewho ficials whospeakofmoralitybutthinknoth- ite City, pointedouttheironyofpoliticalof- Member ofCentralChristianChurch,Gran- Reverend HelenStumpe, leaderofUCMand the samecircumstance. fully rescuedhimbutcountlessothershave Steelworkers The VEBAmonth. thank- fund his medicalinsurance,costhimover$800per ployer NationalSteel andtheterminationof insurance, afterthebankruptcyofhisem- wife developedbreastcancer. HisCOBRA his healthcaremesswhenafterretiring, Retired USWLocal50JohnHeatondescribed ity. quality, affordable healthcareforallaprior- trict office tourge himtosupportmaking of CongressmanJohnShimkusR-IL19 gregations ofMetro-East,UCMmetinfront bers ofourallyforsocialjustice,UnitedCon- USW Locals1899,1063and4449mem- COLLINSVILLE IL: By DougMay-EditorUSWL.U.1899 Thedemonstration care reform. wasoneoffive to supporthealth othersoutsideofU.S.Members ofUnitedSteelL.U.1899joinedwith USW andFaithLeadersCallUponIllinoisLegislators Campaigning forbetterhealth careinPeoria to GetOutinFrontForHealthCareJustice Over40peoplefrom th Dis- 1063 said,“EverytimeInegotiateacontract Lenroy Johnson,PresidentofUSWLocal have properaccesstohealthcare.” people whodieperweek,becausetheydon’t are uninsured,”hesaid.“Therealso18 ”There are1.8millionpeopleinIllinoiswho the numberissignificant. the UnitedCongregationsofMetro-East,said a bell18times.MikeBedesky, presidentof As partofthegathering,participantssounded members’ experienced.” as thebrotherofoneourexecutiveboard medical carearesometimessenthometodie use theemergencyroomathospitalsfortheir Konasheski, “Thosewithouthealthcarethat told CongressmanShimkus’ assistantSteve Russ Saltsgaver, USW Local1899President have nohealthcare. dal onournation”asmillionsof Americans gations ofMetro-Eastmentionedthe“scan- Mike Pedesky, PresidentofUnitedCongre- we needtodoitnow”shesaid. “Healthcare forallisamoralimperativeand calling forhealth carereform. side totalk toIllinois Congressmen Federal Building beforeheadingin- Health CareinPeoriaoutside the porters oftheCampaign ForBetter and JoyceHarantjoined President MarkYork USW7-960 from James Perry, GusMason,LocalUnion “Out in Front” events spearheaded by the Health Care JusticeC eventsspearheadedbytheHealth “Out inFront” Rep. John Shimkus’ office in Collinsville pushingforRep. the JohnShimkus’officeinCollinsville other sup- message totheCongressman’s doorstep. nator andMark FischerLU1899-Taking the Lto R:Randy Virgin LU1899Contract Coordi- for portabilityandaffordability. one payerprogrambuthewantsamechanism health sub-committee.Hedoesnotsupporta dialogue asamemberofthecongressional come outinsupportbutheisparticipating insured?” Tomaszewski saidShimkushasnot the needforfederalpoliciestoassistun- answer. Bedeskyagainasked“Isheawareof Tomaszewski provided alongpausebutno Shimkus infavorofhealthcarereform?” StevenTomaszewski “IsCongressman asked Shimkus’ Congressionalstaffer After allthesepersonaltestimonialsBedesky scription drugs.” between foodorpurchasingtheirfamily’s pre- members whoarelaidoff makingdecisions tual improvementsformymembers. We have this healthcareissueforgoing othercontrac- efit negotiationsarereduced.Iamsickof one. As aresultthewagesandadditionalben- for ourmembershealthcareisissuenumber congressman ampaign.

PHOTO: Doug May dead, at least in critical condition. Few come since they started tracking the data in The Spectacular, progressives will mourn its demise — it was 1929 and wages took the smallest), and high Sudden Crash of the both a proximate cause of the economic melt- earners did very well too. When the oil shock down in which we find ourselves today, and hit in 1973, those in the top one percent of Global Economy one of its victims. But if we are reaching the the income ladder took in just over 9 percent end of an era, questions arise about not only of the nations income; by 2006, they grabbed By Joshua Holland, AlterNet. what will replace it, but also how we’ll finance almost 23 percent. In the intervening years, In a period of months, the entire system of the government spending that most econo- their average incomes more than tripled global capitalism has screeched to a halt. mists agree will be required to stave off a long, The rest of us didnt do as well. In 1973, the painful depression. The worldwide economic meltdown has sent bottom 90 percent of the economic pile — the wheels spinning off the project of build- Always a Flawed Model most of us — shared two-thirds of the nations ing a single, business-friendly global For almost 40 years, smooth-talking snake- income; by 2006, we got half. If you take off the top ten percent of the income ladder, the economy. oil salesmen have pitched the wonders of a rest of the country in 2006 earned, on average, Worldwide, industrial production has ground globalized economy. They insisted that the 2 percent less than they did 30 plus years ear- to a halt. Goods are stacking up, but nobody’s wealthy countries could shift labor-intensive lier, despite the fact that the economy as a whole buying; the Washington Post reports that “the production to the poorer countries at the had grown by 160 percent over that time. world is suddenly awash in almost everything: edges, in search of a cheaper pair of hands and less nettlesome regulations, and that or- But how did we continue to buy with incomes flat-panel televisions, bulldozers, Barbie stagnating? dolls, strip malls, Burberry stores.” A Hong dinary working people would benefit. What- Kong-based shipping broker told The Tele- ever pain Americans might feel as a result of First, women entered the workforce in huge graph that his firm had “seen trade activity the project was merely temporary displace- numbers, transforming the typical single-bread- fall off a cliff. Asia-Europe is an unmitigated ment, they argued, and anyway those cheap winner family into a two-earner household. (Be- disaster.” Global airfreight dropped by tween 1955 and 2002, the percentage of working-age women who had jobs out- almost a quarter in December alone. The result was an explosion in international trade side the home almost doubled.) And while Americans have every rea- and a distinct increase in economic inequality in both poorer and richer countries. After that, we started financing our son to be terrified the New York Times lifestyles through debt. Consumer debt noted that everything is relative: blossomed; trade deficits (which are ul- In the fourth quarter of last year, the Ameri- timately financed by debt) exploded and can economy shrank at a 3.8 percent annual toys at Wal-Mart more than offset any prob- the government started running big budget defi- rate, the worst such performance in a quarter- lems that might come along with the decima- cits year in an year out. In the period after World century. However in Japan the comparable tion of Americas middle class. After all, a little War Two, while wages were rising along with figure is negative 12.7 percent, three times as lead never hurt anyone. the overall economy, Americans socked away bad. over 10 percent of the nations income in sav- The same hucksters sold a similar bill of goods ings. But in the 1980s, that began to decline — Industrial production in the United States is to the developing world. Build export econo- the savings rate fell from 11 percent in the 1960s falling at the fastest rate in three decades. But mies and turn those peasants into factory line and 70s, to 7 percent in the 1980s, and by 2005, the 10 percent year-over-year plunge reported workers. Sign treaties forcing governments to it stood at just one percent (household savings this week for January looks good in compari- let multinationals move goods and capital that year were actually in negative territory). son to the declines in countries like Germany, freely, keep their regulators out of the way of Big Businesss profits and prosperity will After the collapse of the dot-com bubble and off almost 13 percent in its most recently re- the recession that followed, the economic ex- ported month, and South Korea, down about surely follow. Most governments adhered to this pro-corporate orthodoxy, slashing taxes pansion of the Bush era was the first on record 21 percent. in which median incomes never got back to on foreign companies and scrapping various where they were before the crash. Fortunately Chinese manufacturing declined in each of the controls on foreign investment. Largely un- last five months; according to the Financial for Wal-Mart shoppers, a massive housing regulated free trade zones proliferated along bubble was rising. Americans started financing Times, “More than 20 [million] rural migrant the worlds significant shipping routes. workers in China have lost their jobs and re- their consumption by taking chunks of equity out of their homes. The result: in 2005, long turned to their home villages or towns as a The result was an explosion in international before the housing bubble crashed, the average result of the global economic crisis.” The UN trade and a distinct increase in economic in- equality in both poorer and richer countries. amount of equity Americans had in their homes estimates that the downturn could claim 50 was already the lowest it had ever been. million jobs worldwide, prompting Dennis Among the wealthy countries, nowhere was Blair, the US. National Intelligence Director, this more true than in the United States, with Already deeply in the hole, when the markets to warn Congress that, “instability caused by its love of a mythic free market. After union- crashed, consumers stopped spending, and the global economic crisis had become the busting, global trade deals have done the most that’s fueled millions of layoffs, led to a moun- tain of foreclosures, and left state budgets deci- biggest security threat facing the United damage to workers bargaining power. States, outpacing terrorism.” mated. The connection between decades of false Whereas companies used to negotiate with prosperity, the piles of household debt that re- Riots, strikes and other forms of civil unrest their employees in relatively good faith, those sulted, and the degree to which that left Ameri- have become widespread the world over; gov- negotiations are now overshadowed by the can families vulnerable to the bubbles crash is ernments have fallen. In Europe, parties of threat to simply move the whole plant to not difficult to see. Mexico or China. the far right and left have seen their fortunes Global Illusion of Prosperity rise. The result was an illusion of prosperity. Corporate profits rose (in 2004, corporate During the era of globalization,” massive in- The model of economic globalization that’s creases in trade created a similar illusion of dominated during the past 40 years is, if not profits took the largest share of national in- prosperity, masking a long-term decline in real technology-intensive goods, Japanese exports experiencing today, where is the engine of rapid economic growth worldwide. shot up by a record 44%, or $60 billion. Indeed, growth that might pull the worlds economy out China became the main destination for Asia’s of the doldrums? Recessions of recent years — Much of Asia has become a huge production exports, accounting for 31% while Japan’s share in the early 1980s, the early 1990s and the early platform for the West. Its been said, half-jok- dropped from 20% to 10%. China is now the 2000s — werent global in nature; rapidly de- ingly, that the modern global economy works overwhelming driver of export growth in Tai- veloping economies in Asia and Eastern Europe, something like this: the U.S. produces pieces of wan and the Philippines, and the majority buyer and later the rise of the U.S. housing market, green paper, which it trades to China for the of products from Japan, South Korea, Malay- pulled the world out of the doldrums. Its diffi- goods lining the shelves of Wal-Mart and Tar- sia, and Australia. cult to see where that kind of growth might be get, the Chinese trade those pieces of paper to found today. the oil-producing states for energy, and the oil But Bello went on to describe that this producers exchange them with Europe for “decoupling” was also an illusion: And then there is the question of how long for- eign investors will continue to run our tab. As Mercedes and foie gras. Research by economists C.P. Chandrasekhar and Americans demand for just about everything has Economist Robert Brenner described a “long Jayati Ghosh, underlined that China was indeed tanked, economists from across the political downturn” in the world’s wealthiest coun- spectrum have called on the government to take tries, noting that their economies grew by a The so-called free trade agreements, up the slack. So we got a big stimulus package steady rate of 5 percent or more each year were always less about trade than — probably the first in a series — which will from the end of World War II through the constraining the policy options of be tacked onto a budget that was already deeply 1960s, but in the 1970s their growth fell to governments through treaty. in the red. The hole is cavernous, and we have 3.6 percent, and it has averaged around 3 little choice to dig deeper. In 2008, the official percent since 1980. deficit was around $500 billion; the most opti- importing intermediate goods and parts from Ja- But as the social scientist Walden Bello pointed mistic projections are deficits averaging around pan, Korea, and ASEAN, but only to put them out, even those anemic numbers are mislead- $1.35 trillion in both 2009 and 2010. together mainly for export as finished goods to ing. China’s 8-10% annual growth rate has prob- the United States and Europe, not for its domes- In 2006, economist Barry Bosworth testified be- ably been the principal stimulus of growth in tic market Thus, “if demand for Chinese exports fore Congress that net foreign lending had been the world economy in the last decade, he wrote. from the United States and the EU slow down, almost $800 billion in the red — a negative 7.2 Without Chinas consistent growth rates, global as will be likely with a U.S. recession,” they percent of national income. This degree of reli- economic expansion has been all but nonexist- asserted, “this will not only affect Chinese manu- ance on foreign financing is unprecedented, he ent. facturing production, but also Chinese demand explained, but has been achieved with relatively China became an export engine by keeping for imports from these Asian developing coun- few strains because foreigners perceive the wages down through repressive union-busting tries.” United States as offering safe and attractive in- and by drawing on an almost endless supply of vestment opportunities. The collapse of Asia’s key market has banished poor rural peasants to work its production lines. all talk of decoupling. The image of decoupled Right now, foreign investors are still snapping While global trade flows have exploded, much locomotives one coming to a halt, the other chug- up American debt. But how long will they con- of that trade has been between multinationals ging along on a separate track no longer applies, tinue to do so are crucial questions. based in the advanced economies and their own if it ever had. Rather, U.S.-East Asia economic China, with the worlds largest foreign currency offshore units. They ship production overseas, relations today resemble a chain-gang linking holdings — about 70 percent of which is in U.S. but the goods produced end up back in domes- not only China and the United States but a host treasury bills — is still buying, at least for the tic markets; its a means of avoiding first-world of other satellite economies. They are all linked moment. wages, public interest regulations and environ- to debt-financed middle-class spending in the mental restrictions. United States, which has collapsed. But the Chinese are concerned about the stabil- ity of their investments. If the U.S. government As Walden Bello wrote, with its reserve army We often hear that U.S. consumer spending ac- needs to raise the interest rates on its securities of cheap labor unmatched by any country in the counts for 70 percent of the economic activity to attract enough foreign investment to cover our world, China became the workshop of the world, in the country. Do the math: with 20 percent of shortfall, the value of those T-bills China and drawing in $50 billion in foreign investment an- the worlds economic activity, U.S. consumers other central governments are holding will drop. nually by the first half of this decade. To sur- — most weighed down with stagnant wages and vive, firms all over the world, had no choice but maxed-out credit — make up about 14 percent Last week, Secretary of State Hillary Clinton ac- to transfer their labor-intensive operations to of the planets economic demand. Add the other knowledged that the world economy is anything China to take advantage of “the China price”, affluent countries (which were also heavily in- but decoupled, all but begging the Chinese to provoking a tremendous crisis in the advanced vested in our real estate market and related se- continue to buy our debt. According to Agence capitalist countries labor forces. curities), and its easy to see why the economic France Presse, Clinton and Chinese Foreign meltdown has grown to global proportions. The Minister Yang Jiechi largely agreed to disagree It was always an unsustainable model; the dominoes are tumbling. on human rights, while she focused on the need United States annual trade deficit with China for China to help finance the massive 787-bil- — financed by debt — was $6 billion in the Whats Next? lion-dollar US economic stimulus plan by con- mid-1980s, exploded to $266 billion last year. International trade existed long before “global- tinuing to buy US Treasuries. Defenders of the global trade regime have long ization”, and will continue after its demise. The In a moment of clarity — one that shone a light argued that Chinas currency will rise in value so-called free trade agreements championed by on the rot of the global economic system that against the dollar, the trade deficit will shrink, liberals and conservatives alike were always less has prevailed for the past 40 years, Clinton ex- and there will be significant decoupling between about trade than constraining the policy options plained to the Chinese media, “We have to in- the two economic powerhouses as a new gen- of governments through treaty. cur more debt . . . the US needs the investment eration of middle-class consumers in the East The one likely bright spot in all this is that the in Treasury bonds to shore up its economy to Asian countries begin demanding a greater share free trade economic orthodoxy lies in ruins. continue to buy Chinese products.” of all those manufactured goods. What will replace it is a question for the long- Joshua Holland is an editor and senior writer at On the surface, it appeared that at least the last term. AlterNet. http://www.alternet.org/workplace/128412/ part of that was indeed happening. As Bello The more immediate question is two-fold. First, ?page=entire - noted, To satisfy China’s thirst for capital and in a global economic crisis such as the one were Jackson Veteran steel union activist and SOAR member Vic Storino leads the way out of Federal Plaza in Chicago photo: Ray Hennepin Steelworkers from L.U. 7367 were joined at Federal Plaza in Chicago by ArcelorMittal workers from Locals 1010, 1011, 6787 and SOAR along with members of Locals 2154, 9777,and 5133 and others to protest Arcelor Mittals plan to close their mill and ship the equipment to France and Brazil. Let’s Make Steel - The Sequel CHICAGO - April 30, 2009: Busloads of payers of Illinois gave $10 million in tax through other bankruptcies and shutdowns and steelworker families from Hennepin, IL trav- breaks for locating in Chicago)- shouting they are proud of their record in repeatedly sav- eled to downtown Chicago to give their boss “Let’s make steel!” as they did in 2001 out- ing the company- as well as helping to save ArcelorMittal Steel a simple message. “Run it the industry, and they will fight hard to get back or Sell it!” thundered the angry members of to being productive, efficient makers of steel. USW Local 7367 who were joined by union Rapid Response Coordinator Joe Pakula, brothers and sisters from other Mittal mills, Grievance Chair and Putnam County Commis- first at Federal Plaza and then, after a short sioner Duane Calbow, Pres. Dave York, sign- march, at the offices of the steel giant at 1 East maker Kathy Bohm and many other activists Dearborn. at Local 7367 worked hard to mobilize their ArcelorMittal shut the mill in December 2008, forces and send a strong message through the laying off almost 300 workers. Mittal manage- April 30 action. The Local urges supporters to ment has indicated they have no intention to write to Sen. Dick Durbin durbin.senate.gov let anyone else re-open and run their highly as well as Vice President Joe Biden at the profitable and productive facility as they make Middle Class Task Force Governor of Illinois, Patrick Quinn voiced plans to ship the equipment out of the coun- his support to keep Hennepin open. astrongmiddleclass.gov and urge them to try.. fight for the running or selling of Arcelor- Mittal at Hennepin. In front of the Federal building, Kevin side the LTV bankruptcy court when that com- Coleman, the Mayor of Hennepin, where the pany was trying to wreck the mill. steel mill is the main employer; USW Vice President Fred Redmond, District Director The Company got the message. Local 7367 Jim Robinson and Local 7367 leaders and President Dave York reported that on their way activists all gave rousing speeches vowing to home he got a call from their Congressman’s fight Mittal’s greedy refusal to sell. office. The Company had called Representa- The Governor of Illinois, Patrick Quinn tive Schock to discuss the their side of the joined the rally and voiced his support and de- story, and his staff made it clear to the com- termination to get the Company to respond to pany that they support the workers in Hennepin the viable bids being made for the mill. (The and that they are aware of the situation in USW members from Indiana were in awe of a Lackawana NY (where ArcelorMittal promised Governor who shows solidarity with working they would be open to viable bidders and then people!) backed off their commitment) and they don’t want the same thing to happen at Hennepin. The Union then marched two blocks to District 7 Director Jim Robinson(right) USW 7367 ArcelorMittal headquarters (for which the tax- The working families of Hennepin have been President Dave York. Corporate America’s counter-stimulus strategy - firms decide to shut profitable plants while spurning buyers By Roger Bybee earning $48.4 million in 2008. Yet crease their profits by paying less than a dol- ArcelorMittal is intent on shipping one prod- lar an hour. This was a case of a corporation “Is it too late? I hope not,” said an exasper- uct line to Brazil and another to France. More- taking a productive, profitable plant and clos- ated Anthony Fortunato, president of the 260- over, ArcelorMittal has rebuffed a proposal ing it, refusing to sell it to anyone.” The paper member USW L.U. 2604 at the ArcelorMittal by another major steel company to buy the mill turned a profit of $66 million in 2007, mill in Lackawanna, New York, as he and his Hennepin mill and keep it running. says Nirschl. Four firms showed interest in co-workers watch the mill being systematically buying the plant, but Cerberus and NewPage taken apart. The Hennepin workers have little prospect of finding jobs paying anywhere close to the remained uninterested, frankly admitting that An eager buyer has been pressing the com- they had no plan at all to market the pany—the world’s largest steel firm—for plant to another buyer. at least two months to sell the mill and From Manufacturing to Finance thus keep the profitable operation open and the jobs alive. Fortunato is hoping the While America’s productive base suf- buyer will remain interested despite fers from under-investment or is lost ArcelorMittal’s aggressive drive to gut the to off-shoring to Mexico, China, and mill. ArcelorMittal is rushing to dismantle other low-wage countries, U.S. cor- complex, custom-built ovens and other porations have engaged in specula- equipment that will take months to re- tion, using supposedly more profitable place. paper assets such as mortgage-backed derivatives. “The only thing that has Day by day, the dismantling continues, re- kept the economy going since Reagan ducing the value of the mill. “Our mem- is one sort of artificial bubble or an- bers are getting sick watching this hap- other, because Corporate America has pen,” said Fortunato. been destroying real production,” de- Arcelor’s plans to close the Lackawanna clares UE Western Regional President mill are occurring against a backdrop of Carl Rosen. a widely supported effort by President One stunning symptom of America’s Barack Obama to stimulate the nation’s declining productive capacity: the flat-lining economy with the $787 billion contrast between the nature of the “American Recovery and Reinvestment imports and exports clogging the Act.” But even as Obama is moving to mammoth West Coast port of Long counter the nation’s economic free-fall, Beach. On the import side, ware- major corporations are moving in the op- houses and parking lots around the posite direction when it comes to main- port are filled with imported cars and taining employment and consumer de- electronic products from mainly mand. A recent survey showed 71% of China and Korea—an enormous CEOs expecting more layoffs in the com- backlog due to the current crisis in the ing six months. $70,000 their old jobs averaged, including world economy. On the export side, Not only are they accelerating the pace of overtime and productivity bonuses, says York. the profound shift in the U.S. economy from outsourcing to low-wage nations like China, production to finance is reflected in the lead- but there have been several recent instances And ArcelorMittal’s strategy is not unique. ing U.S. export from Long Beach: recycled of corporations closing profitable plants in the Last fall, the Cerberus private equity group, paper and cardboard. United States and then refusing to sell them to through its NewPage subsidiary, shut down a At the same time that capital has flowed away other companies interested in keeping the highly profitable, technologically advanced from U.S. factories to low-wage sites abroad, plants open and retaining the current paper mill in Kimberly, Wis. Cerberus is it has also been increasingly channeled into workforce. headed up by John Snow, former Treasury sec- retary under George W. Bush; Dan Quayle, the financial sector. This has occurred within “These jobs aren’t coming back” former vice president under George H.W. major manufacturing corporations like Gen- The Lackawanna mill isn’t ArcelorMittal’s Bush; and Richard Feinberg, who personally eral Motors and General Electric, which had only closure. ArcelorMittal is also shutting raked in $330 million in compensation from been extracting a growing share of profits from down its Hennepin, IL mill, even though other Cerberus in 2007. USW Local 2-9 President their financing arms as investments have in- firms have expressed strong interest in buy- Andy Nirschl speculates that Cerberus (the creasingly shifted away from production to ing that mill, reports USW L.U. 7367 presi- name is derived from the mythological dogs finance. dent David York. who guard the gates of Hades) essentially Reflecting this shift, the U.S. financial sector At a moment when unemployment around wanted to raise paper prices by reducing ca- produced $313 billion in profits in 2003, com- Hennepin—about 100 miles west of Chi- pacity, regardless of the human cost to 600 pared with just $119 billion for American cago—has hit 10%, ArcelorMittal is prepar- workers and their families. manufacturing, as economist William K. Tabb ing to permanemtly lay off 285 USW mem- “This wasn’t like the usual scenario we’ve seen has pointed out. Where the financial sector bers. again and again,” says Nirschl, “where a cor- accounted for less than 2% of total domestic corporate profits in the mid-1950’s, in 2007 it The plant has been consistently profitable, poration move jobs to Mexico or China to in- provided close to 40% of all domestic corpo- of credit, which, in turn, deprived workers of Sense, the frustration and anxiety evident in rate profits. vacation and severance pay. his voice. The outcome of the negotiations may Tabb aptly describes the seemingly “magical” With the plant already closed, the workers depend on whether ArcelorMittal’s decision process behind the expansion of the financial decided to take over the plant, thereby taking to aggressively dismantle the steel operation sector: control of Republic’s valuable inventory and has made purchasing the existing, hollowed- out plant and re-starting production far more Money could be made solely out of money, holding it hostage. The result: Bank of America re-opened the financial spigot, the workers difficult and costly than simply beginning pro- without the intervention of actual production. duction from scratch. The new secret was presumed to be leverage were paid, an environmentally oriented firm and risk management, which allowed the pur- bought the plant and will be rehiring the work- The involvement of members of the U.S. Con- chase of assets that promised higher returns ers, and the sit-down achieved worldwide gress at Lackawanna—as at Hennepin and even if they carried a higher risk. fame. Kimberly—has forced the corporations to The Republic sit-down also inspired non-union claim that they were willing to sell the plants This was both an economic and a political de- and retain jobs. But once the meetings were velopment, as the financial sector gained le- workers, faced with a plant closing at the Colibri Group jewelry factory in East Provi- concluded, corporate interest in selling and verage over the rest of the economy, in effect saving the jobs of local workers rapidly melted gaining the power to dictate priorities to debt- dence, R.I., to stage a sit-in. The action re- sulted in 15 arrests while intensifying pres- away. For example, a Cerberus/NewPage of- ors, vulnerable corporations, and govern- ficial was asked recently whether the company ments. As its power grew, it could demand sure on the firm’s owner, the Founders’ Group private-equity firm. had any plans in place to market the Kimberly greater deregulation, allowing it to grow still plant. The response: “No.” further and endangering the stability of the UE Western Regional President Carl Rosen, larger financial system. who played a leading role in backing the sit- Cooperation: A One-Way Street Meanwhile, many major firms are adopting down strike, noted that the action—both ille- Particularly frustrating for Local 2604 is the what can best be described as a fact that the union made such extensive efforts to assist the corporation. It lob- “counter-stimulus” economic program, This would be unthinkable in a number of precisely following what Nirschl called bied successfully for a two-thirds reduc- “the usual scenario.” The New York Western European democracies like tion in their electricity costs, lined up training grants, and supported reductions Times reported on a massive wave of Germany and Sweden that have long job offshoring and wholesale divesting in sales and property-tax rates for the of product lines. required that corporations provide a corporation. “We as a union have done compelling rationale for shutdowns to a lot to help the company. They’ve tried “These jobs aren’t coming back,” John to tell us we’re not competitive as a plant. E. Silvia, chief economist at Wachovia regional government labor-market bodies. If that’s the case, why not sell us?” in Charlotte, N.C., told the Times. “A lot of production either isn’t going to Rather than being grateful for the union’s gal and highly unusual in the United States— efforts to lower its costs, ArcelorMittal instead happen at all, or it’s going to happen some- ignited enormous support, including from where other than the United States. There are changed its internal accounting procedures so President Obama. “We made our message that the Lackawanna plant actually booked a going to be fewer stores, fewer factories, and everybody’s message,” explained Rosen. fewer financial services operations. Firms are loss, by charging that plant more for shipping “This economy is failing because workers can- and supplies from other ArcelorMittal plants making strategic decisions that they don’t want not buy back what they are making. Corpora- to be in their businesses.” around the United States. In that way, tions are being bailed out and workers are ArcelorMittal aimed to evade New York’s Productive Base Goes out the Window being sold out.” higher corporate taxes, Fortunato suspects. Mark Meinster, a representative of the United Corporations claim “We’re willing to sell” Until ArcelorMittal made that shift in account- Electrical Workers (UE) international, said As a Luxembourg-based firm owned by an ing, the plant had been consistently showing a that this latest round of job destruction is sim- Indian-born billionaire living in London, profit of about $6 million a month. ply an intensification of trends visible in re- ArcelorMittal is clearly following the “take the With annual wages typically running in the cent decades, but made all the more galling money and run” model of Anglo-American $40,000-to-$50,000 range, his members will because of the wanton closing of profitable capitalism. This system is far harsher than the have a hard time finding comparable-paying plants at a time when good jobs are increas- Western European model in which employ- work. Fortunato believes the real unemploy- ingly scarce. “We see this every day,” said ers’ incentives have been more influenced by ment rate in Lackawanna, near the similarly Meinster. For the past 20 years, there has been social-democratic traditions and the ongoing hard-hit industrial city of Buffalo, is about 25% everything from out-and-out trickery to pri- strength of the labor movement. to 30%. “Our guys will have to work two or vate equity firms transferring debt from a In Lackawanna, ArcelorMittal’s foot-dragging three jobs to make what they earn here,” he money-losing operation to a profitable plant, said. and then shutting down the plant and strip- on a potential sale could soon mean the loss ping its assets. “Meanwhile, our productive of 260 jobs. “Until March 26, the company The steelworkers in Illinois also complain of capacity completely goes out the window.” was not admitting that they even had heard of the corporation’s indifference to commitments any interested buyers,” said USW Local 2604 by the public to subsidize ArcelorMittal. Meinster helped to coordinate the December president Fortunato. But the forceful interven- ArcelorMittal’s decision to locate its U.S. sit-down strike at Chicago’s Republic Win- tion of Sen. Chuck Schumer (D-NY) finally headquarters in Chicago unleashed a flow of dows and Doors. Workers there faced both produced a meeting between ArcelorMittal’s incentives, including $2 million in assistance an employer secretly moving equipment to a U.S. CEO Mike Ripey and one interested for furnishing corporate offices. new non-union plant in Iowa and the Bank of buyer. America—which received $20 billion in At Hennepin, the union’s current contract com- grants and $118 billion in loan guarantees from “At this point, we don’t know the results of mits ArcelorMittal to keeping the plant open the bank bailout—cutting off the firm’s line the negotiations,” Fortunato told Dollars & Continued on page 24 Continued from page 23 When displaced workers successfully complete may raise corporate investment decisions to a through the agreement and maintaining its vi- retraining programs, they are generally unable high-profile political issue. Corporations are ability through adequate investment. The to find jobs comparable in pay and benefits to closing profitable, productive plants in the midst union has taken the case to arbitration. the ones they lost. of a severe economic crisis, and then capri- ciously refusing to seriously consider selling the Corporate Royalty Ignores Workers’ “Out of a hundred laid-off workers,” says New plants to keep them open. Years of Loyalty York Times economics writer Louis Uchitelle says, “27 are making their old salary again, or This would be unthinkable in a number of West- Corporations are often accused of having an more, and 73 are making less, or not working at ern European democracies like Germany and imperious, Marie Antoinette-style attitude to- all.” But even if retraining were an effective strat- Sweden that have long required that corpora- ward their workers, unaware and uncaring egy, the very politicians who tout it as a solu- tions provide a compelling rationale for shut- about their daily struggles to provide for their tion have been unwilling to fund training in a downs to regional government labor-market families. serious way. Funding for training has plummeted bodies. Most other Western European nations Marie Antoinette, wife of Louis XVI, was in- from $20 billion in 1979 to just $6 billion last offer workers and communities some degree of formed that the poor of Paris were too poor to year (in constant dollars), according to one ex- protection from the effects of shutdowns, al- afford bread. Her supposedly infamous re- pert cited by the Times. These cutbacks in fund- though not as extensively as in Germany or sponse: “Let them eat cake.” She was later ing would seem to indicate that leading politi- Sweden, nor with the same degree of worker beheaded in 1793 during the French Revolu- cians, especially in the Bush era, were never and community participation in decisions about tion. quite sincere in their willingness to match their the company’s plans. The Excecution of Marie Antoinette proclaimed faith in the power of retraining with In the United States, the increasingly destruc- an equivalent level of funding. But in the case of ArcelorMittal, which is pre- tive impact of arbitrary corporate decisions to paring to shut down steel mills in Hennepin, Ill. Further, the traditional unemployment-compen- close plants amidst a severe economic crisis may and Lackawanna, N.Y., the comparison to Marie sation safety net has been shredded over the past finally unleash public demands to place corpo- Antoinette may not be much of an exaggeration. four decades, reaching a much smaller percent- rations’ conduct under democratic constraints. The workers and local communities have been age of workers than in past, less severe reces- Roger Bybee is the former editor of Racine Labor Visit bewildered by the corporation’s commitment to sions. During the 1975 recession, unemployment his webpage at www.zmag.org/zspace/rogerdbybee. closing the profitable mills despite offers from compensation reached 75% of the jobless and other firms that wanted to keep them open. thus was a significant factor in restoring con- sumer demand. But thanks to radical cuts in un- Meanwhile, corporate CEO Lakshmi Mittal lives DISTRICT 7 employment compensation eligibility rammed Issue #33 MAY 2009 in near-royal grandeur in London in a $125 mil- through by the Reagan administration, only 45% lion home right next to the posh Kensington Pal- of the unemployed received any benefits dur- NEWS & AGITATOR ace. The swimming pool is inlaid with jewels, ing the much more severe recession of 1982- and the estate includes a 20-car garage. Lakshmi 83. The National Association of Manufacturers Official Publication of the United Mittal has a personal fortune estimated at $25 Steelworkers - District 7 was delighted with the cutbacks in eligibility, Published as an insert in USW@Work billion. crowing that under the old rules, “there was no For the wedding of his daughter Vanisha, who is incentive to go back to work under that pro- also a member of the corporation’s board of di- gram.” rectors, Mittal shelled out $55 million. If you’re By 2003, the number of unemployed workers wondering how even the super-rich could man- eligible for benefits had fallen further from the age to spend such a sum on a wedding, it might 1982 level of 45% down to just 41%, accord- help to know that the five-day celebration was ing to the Ohio-based group Public Policy Mat- capped by a party—at Versailles. ters. While Obama’s American Recovery and That’s right—Versailles, the magnificent and leg- Reinvestment Act may begin to reverse some endary palace that King Louis XVI gave to his cutbacks in eligibility, it remains to be seen how 19-year-old bride, Marie Antoinette, as a wed- widely these changes will positively affect the ding present. Plus ça change... fates of the jobless. Jim Robinson, Director What Benefits? What Retraining? Needless Job Losses Sal Aguilar, Assistant Director Bill Carey, Editor - [email protected] As major corporations continue to undermine The toll of unemployment extends far beyond a 1301 Texas Street 2nd Floor – Room 200 the impact of Obama’s stimulus efforts by slash- drop in family income, access to health care, Gary, Indiana 46402 ing jobs, the conventional wisdom among lead- and a loss of self-esteem for the displaced work. Phone: 219.886.2596 ing economists and elected officials in both par- Peter Dreier, a political scientist at Occidental Fax: 219.886.8686 Sub-District Offices ties is that worker retraining is the best public- College, recently released a study showing that Bridgeview IL 708.233.0800 policy response. each 1% increase in the national U.S. unem- Granite City IL 618.452.1130 ployment rate produces an additional 47,000 Indianapolis IN 317.845.0495 But this approach, while conveniently allowing Plymouth IN 574.935.3563 elected officials to sidestep an uncomfortable deaths, with 26,000 of the fatalities cardiac-re- lated, 1,200 due to suicides, and 831 due to Gary, IN 219.881.6207 confrontation with corporations’ unilateral con- Staff Offices trol over the fate of workers and communities, homicides. Galesburg, IL 309.342.2635 Jasper, IN 812.367.2765 has little empirical support as a successful strat- Given these grim realities about passively ac- Copyright 2009 by the United Steelworkers. All rights reserved. No part of egy for “adapting” to deindustrialization and the cepting the consequences of deindustrialization, this publication may be reproduced without written consent of the USW. Member of the USPA. Articles and photographs from members are wel- offshoring of jobs. As the supply of family-sup- coupled with growing resentment about the come. Thanks to contributors: Gary Gaines, Robin Rich, Jim Spazoff, Ray porting jobs is reduced, workers are essentially greed and malfeasance of Wall Street, the egre- Jackson, Blanca Morales, Dennis Barker, Doug May, Andy Clark, Steve Hartoin, Scott Marshall Rachel Bennett Steury, Norma Gaines, Charlie losing at a game of musical chairs in which good gious damage to workers and communities im- Averill and John Logan. jobs are disappearing and not being replaced. posed by firms like Cerberus and ArcelorMittal