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The University of Maine DigitalCommons@UMaine Maine Women's Publications - All Publications 4-1-1994 Maine Women's Lobby News Letter (1994 - April) No. 7 Maine Women's Lobby Staff Maine Women's Lobby Follow this and additional works at: https://digitalcommons.library.umaine.edu/maine_women_pubs_all Part of the History Commons, Law and Politics Commons, Public Administration Commons, Public Affairs Commons, and the Women's Studies Commons Repository Citation Staff, Maine Women's Lobby, "Maine Women's Lobby News Letter (1994 - April) No. 7" (1994). Maine Women's Publications - All. 93. https://digitalcommons.library.umaine.edu/maine_women_pubs_all/93 This Newsletter is brought to you for free and open access by DigitalCommons@UMaine. It has been accepted for inclusion in Maine Women's Publications - All by an authorized administrator of DigitalCommons@UMaine. For more information, please contact [email protected]. I «i ™ Maine Womens APRIL 1994 Lobby NUMBER 7 How Women Fare In The New Global Economy By Stephanie Sequino While many in the United States praise labor union activity combined to ensure and move to another country when work­ the trend towards a global economy, the higher profit rates abroad. The shift of ers insist on wage hikes, improved safety debate rarely considers how these eco­ investment abroad by corporations began standards or better working conditions. nomic changes affect women and the goal a process called the “deindustrialization Corporations are also able to pressure lo­ of gender equality. of America” and has contributed to the cal governments to reduce taxes and roll The globalization of the economy oc­ loss of hundreds of thousands of manu­ back protective labor and environmental curs when corporations, goods and money facturing jobs in Maine and the U.S. legislation. The recent case in which the move easily across international borders. Large corporations are not multina­ city of Willow Run, Mich, agreed to a $ 13 The roots of this global economy can be tional with production branches in sev­ million tax abatement for General Motors found in the declining corporate profit eral countries. While we still tend to think (G.M.) in return for that corporation’s rates of the late 1960s, which induced U.S. of corporations as having nationalities, commitment to keep the factory open until companies to move production to devel­ this distinction has become meaningless. the year 2000 is a case in point. oping countries. For example, Texas Instruments produces Understandably, many communities The lure of cheap wages, lax labor and a large percentage of its semiconductor have felt it necessary to accede to corpo­ environmental standards and, on occa­ chips in Japan and Hewlett Packard now rate demands. But the loss of tax revenue sion, repressive governments that limit produces computers in France. As a re­ results in lay-offs of state and municipal sult, many goods sold as American prod­ workers, cuts in social services and edu­ ucts are made up of components made cation spending and higher property taxes. Lawmakers Make almost entirely overseas. The production Corporations have also succeeded in low­ of goods now spans the globe, a phenom­ ering their tax liability at the national level Minor Changes in enon that has been called the new inter­ with the share of corporate income taxes national division of labor. in total income tax revenue falling from Maine's Welfare System Some regard these changes as a move 28 percent in 1955 to 8.2 percent in 1988. toward greater economic “efficiency.” Lawmakers refused to adopt Gov. continued on page 2 Others worry, however, that corporations John McKeman’s controversial welfare have extended their reach beyond the reform proposals that had been labeled regulations that once limited their ex­ / “punitive” and “Draconian” by the Maine cesses. Indeed, it appears that the rise of Women’s Lobby and other organizations capital mobility, which has resulted in and made only minor changes to Maine’s ♦ Celebrate Maine Women increased corporate leverage over work­ welfare program that serves low-income ers and policy-makers, has come at the ♦ Great Escape Winners women and their children. cost of community. Within days of wrapping up their ses­ ♦ Women's Health Equity Day How has this happened? Increasingly, sion, lawmakers established a business ♦ Major Donors Thanked multinational corporations are able to play subsidy for employers if they hired an Aid workers in different countries off against ♦ Sexual Assault Awareness each other by threatening to close up shop continued on page 3 Page 2 Maine Women's Lobby Newsletter How Women Fare... significantly lower than those paid men. their income is less and gender equality They almost universally work longer remains out of reach. continued from page 1 hours, in part because women everywhere In the manufacturing sector, some in­ bear the brunt of household labor. In many dustries have shifted to subcontracting, countries, women are excluded from high- especially among the garment and elec­ Some argue that increased corporate paid jobs in capital-intensive industries tronics industries in New York and Los leverage requires Mainers to create “a such as auto, steel, and ship building. This Angeles County. Subcontracting links good business climate” in order to attract results in their being “crowded” into a lim­ established firms to unlicensed shops and new business and jobs. But recent events ited number of jobs in labor-intensive industrial home work, where the large suggests that today what is required to export manufacturing, causing an artifi­ proportion of workers are native- and for­ create a good business economy is in con­ cial depression of women’s wages. In eign-bom Hispanic women. These areas flict with our needs as workers and citi­ spite of the rapid growth of female em­ of labor escape governmental regulation zens. ployment, wage differentials between with the result that workers are frequently A telling statistic is the U.S. unem­ men and women have actually widened subject to abuse - underpayment or non­ ployment rate, which has steadily climbed in some countries. This is a peculiar re­ payment, hazardous work conditions and over the past three decades. In the 1960s, versal of economic logic that would sug­ sexual harassment. for example, the average unemployment gest that because women are in such high Firms also rely on overtime to reduce rate was 4.8 percent while the average for demand compared to men, their wages labor costs. While this might seem con­ the 1980s was 7.3 percent. should rise rather than fall. tradictory, firms save on payroll taxes and Higher rates of unemployment are By importing cheap goods from de­ fringe benefits by working employees partly explained by the loss of many well- veloping countries, we in the U.S. import overtime instead of expanding employ­ paid manufacturing jobs to low-wage gender discrimination and labor repres­ ment. For many workers, overtime work countries. Recently, G.M., Ford, and sion. Indeed, imported goods would not is mandatory. From a gender perspective, Chrysler have opened plants in Mexico, be so cheap without wage discrimination. the use of overtime creates a problem resulting in the loss of an estimated While we may benefit as consumers from since it is primarily men (in manufactur­ 200,000 jobs in the U.S. auto industry. cheaper goods, our well-being as work­ ing and professional jobs) who are called Those well-paid jobs have not been re­ ers and citizens is undermined by these on to work excessive hours. This makes placed to any substantial degree by jobs practices. There appears to be a strong men less available to contribute to house­ that pay decent living wages. Instead, our connection between the low wages paid hold labor and child care and it widens economy has generated low-paid jobs in women in developing countries and stag­ the gap between male and female earn­ the service sector. nating wages in the U.S. Real wages in ings. In this environment, corporations en­ America have fallen since 1973 while real Another disturbing trend is the growth gage in a cost-cutting frenzy that forces average gross weekly earnings in 1992 of earnings inequality among women. workers and communities to compete were the lowest they had been since 1958. Affirmative action programs appear to against each other. Unfortunately, Ameri­ Not only are wages lower than 20 have had some success in opening doors cans are asked to compete with workers years ago but job hours are also more in­ for women in professional and manage­ whose daily wage may be as low as 50 secure. An increasingly number of new rial positions, contributing to an increase cents an hour. These workers often labor jobs are part-time or temporary jobs, i women’s average eamings in the last 15 in unsafe conditions, do not have the right which pay lower hourly wages, have less years. However, at the same time, the to organize and have no fringe or social job mobility, and provide fewer social and number of women who are low-wage benefits. A recent “Dateline” story on the fringe benefits that full-time jobs. These workers (earning less than $10,000 has source of WalMart products showed jobs are concentrated in the service sec­ risen to almost a quarter of all women Americans now compete with children in tor but some manufacturing jobs are now workers, up from a low of 16.5 percent in Bangladesh and Pakistan who are paid organized in this fashion. Since the mid- 1978. subsistence wages and are not free to 1970s, the growth of part-time jobs has Rising inequality among women leave their factory jobs. We also compete evolved from an increase in involuntary workers places stress on gender solidar­ against women in South Korea who earn part-time slots.

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