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Reports for
Feb. 4-7, 2002
Previous weeks' news: Jan.
28- Feb. 1 -- Jan. 22-25 -- Jan. 14-18
THURSDAY,
February 7 -- Bender:
Workers Win with a Real Choice on the Job
— In today's UW Daily -- TA-RA
collective bargaining bill on a fast track
— In today's News-Tribune -- University
faculty also deserve collective bargaining -- Honey op-ed.
...plus -- Magic-wand
solutions won't solve state's budget problems -- Davis op-ed criticizing
both the WFSE's budget recommendations and those of right-wing think tank.
— In today's Seattle P-I -- Nursing
home pay plan came up short
...plus -- Seattle
police union sets sets vote of confidence on Chief Kerlikowske
...plus -- Labor
Ready's loss expected to widen; stock tumbles (wah)
— In today's Everett Herald -- After
losing Legislature, Marine to run for Congress vs. Inslee
— In today's SCJ -- Machinists
District 751 polls members on Boeing negotiations
— In the new Stranger -- Illegal
light rail: Sound Transit faces strong legal challenge
— In today's Seattle Times -- Keep
promises; don't shortchange Hanford (editorial)
— In today's Tri-City Herald -- Locke
visits, pushes transportation plan
— In today's Yakima Herald -- Locke:
Hike gas tax, get road improvements
— In today's Bellingham Herald -- APWU
told Federal Building post office to be closed
— In today's Oregonian -- OHSU,
nurses reach tentative deal after 52-day strike
— In today's L.A. Times -- Labor
Dept. investigated disputed SAG national election
— In today's N.Y. Times * -- More
get rich and pay less in taxes
— In today's Washington Post -- A
little help for the jobless (editorial)
— In today's Roll Call -- Speaker
Hastert: Campaign reform would cost GOP the majority -- But AFL-CIO
opposes Shays-Meehan bill and is lobbying Gephardt today seeking changes in
portions dealing with the amount of soft money unions may donate to state
and local parties. Labor is also pushing for changes regarding allowable
"coordination" with a candidate or party committee.
— Today from MSNBC -- Hastert
warns GOP against reform -- Unions top list of soft money donors.
WEDNESDAY,
February 6 -- "Celebration
of Black History and Labor" is Feb. 20 in Tacoma
...plus at AFLCIO.org -- Inside
Bush's budget: Hidden hits and hidden costs
— In today's Seattle P-I -- House
committee approves discount drug bill -- Voting "yes" were
Reps. Cody, Conway, Ruderman, Schual-Berke, Darneille, Edwards (all Dems)
and Rep. Campbell (R); siding with the drug companies were GOP Reps.
Alexander, Benson, Ballasiotes and Skinner.
— In today's Spokesman-Review * -- Band-Aid
sought for hemorrhage of state's health dollars
— In today's Seattle Times -- Having
the confidence to tackle transportation now -- Op-ed: Experts
estimate that each year of delay is a $300 million cost increase, based on a
low 2-percent inflation rate. Those figures bloat when inflation is higher...
Imagine how much money we will have saved— for us, for our kids, for our
grandkids—if we do something today instead of putting it off to the
future.
— In today's Everett Herald -- SPEEA
takes protest to Boeing HQ in Chicago
— In today's Tri-City Herald -- Murray
attacks Bush's proposed Hanford cuts (Also see transcript.)
— In today's News-Tribune -- Eyman
cohorts ask him to return campaign funds
— In today's Oregonian -- IBEW
125 rep tells Congress Enron pension freeze longer than reported
— In today's Washington Post -- Rich
employee, poor employee (re: Enron, pensions)
...plus -- U.S.
Senate to shelve stimulus proposal
— In today's L.A. Times -- Ban
on MTBE induces suit against NAFTA provision
— In today's N.Y. Times * -- Social
Security pledges may haunt both parties
...plus -- House
Speaker schedules vote next week on campaign finance overhaul -- Take a
look at the
AFL-CIO position on the McCain-Feingold bill.
ACTION
ALERT!
Calls and e-mails are needed NOW in support
of the state's ergonomics rule. Click here for details.
TUESDAY,
February 5 -- Paul
Robeson Memorial Concert organizers seek assistance
...plus, don't forget -- Must-see
TV: Moyer's "Trading Democracy" tonight on PBS
— In today's SCJ -- SPEAA
engineers rally today outside Boeing HQ in Chicago
— In today's UW Daily -- TAs,
administration reach agreement on bargaining bill
— In today's Seattle P-I -- House
approves building second Narrows bridge
— In today's Seattle Times -- Eyman
Chapter 2: You could see it coming -- Op-ed: This is a train wreck
anyone could see coming. The tragedy is that we allow these opportunists to
not only intimidate our elected officials but the rest of us as well. Eyman
has become, like Sizemore in Oregon, our transportation engineer, our school
superintendent, our local fire and police chief.
— In today's Yakima Herald -- Could
it be Wal-Mart eyeing Grandview? -- Federally funded non-profit
agency that "fights poverty" seeks $200,000 in tax money to buy
land for warehouse.
— In today's Oregonian -- Norpac,
farmworkers' union begin talks
Today at AFLCIO.org -- President
Bush's budget fails working families
...plus -- Sen. Murray takes White House to task over
proposed Hanford cuts
— In today's News-Tribune -- State
could take a $140 million transportation hit in Bush budget
— In today's Tri-City Herald -- Hanford
cleanup cuts proposed in Bush budget
— In today's Seattle Times -- Budget
packed with Boeing work: Fighter jets, transports fare well
— Today from Reuters -- "Wartime"
budget blamed for labor program, job training cuts
— In today's L.A. Times -- Poll:
80% say don't tap Social Security for tax cuts
— In today's N.Y. Times * -- Bush
budget taps Social Security for tax cuts, increases deficit
...plus -- Democrats
take aim at Bush plan to spend Social Security and budget surpluses
...and finally -- The
axis-of-inefficiency budget -- Editorial: When asked to address charges
that the administration was not leaving enough money to keep Medicare and
Social Security solvent, (White House Budget Director Mitch) Daniels said
both were heading toward insolvency anyway.
MONDAY,
February 4 -- Must-see
TV: Moyer's "Trading Democracy" Tuesday on PBS
— In today's Seattle P-I -- Eyman
admits to lying
— In Sunday's Olympian -- Budget
gap plans debated -- Conservative think-tank invited to testify in
support of state wage freeze, repealing prevailing wage and wholesale
contracting out. Translation: Pay everybody less money. That ought to
get us out of the recession!
— In Sunday's Seattle Times -- Lawmakers
betting on voters to raise gas taxes
— In Saturday's Everett Herald -- Better
transportation will protect area jobs (IAM's Blondin op-ed)
— In today's Yakima Herald -- Supermajorities
are superstupid (editorial re: school levies)
— In Sunday's Aberdeen Daily World -- IAM's
Jim Coates honored for community service
— In Sunday's Vancouver Columbian -- Bemis
Co.'s profits don't stop layoff plans
— In today's Washington Post -- Lay
pulls out: Enron ex-CEO cancels Hill testimony
...plus -- Bush
budget proposes tax credits for private school tuition
News from previous weeks: Jan.
28- Feb. 1 -- Jan. 22-25 -- Jan. 14-18

THURSDAY,
FEBRUARY 7
Bender: Workers Win with a Real Choice on the
Job
Rick Bender, President of the Washington State Labor
Council, distributes a monthly column on working families issues to weekly
community newspapers around the state. (See the President's
Column page for an index.) Editors of union newsletters and
publications are encouraged to publish these columns, which are posted here
every month (email us if you would
like a higher resolution photo of Mr. Bender). Here is his latest
column:
I
have always found it ironic that those who complain that government doesn’t
run like a business are often the same individuals who oppose allowing
government employees the same rights as their private sector counterparts.
This year in Olympia, several important bills seek to expand collective
bargaining. Allowing employees to join a union and bargain for a contract
that defines wages, benefits and other economic issues is a fundamental
right granted to the private sector. But employees for the state, and our
4-year colleges and universities have no such right. It’s time to change
that!
Collective bargaining is the tool used in most industrialized counties
to create a way for workers to address their concerns. The most important
concern is that employees have a real voice on the job. That participation
often leads to higher productivity, lower staff turnover, and higher
incomes and benefits. It’s a partnership that often leads to true
efficiencies.
When workers have a real voice, they can speak out about job safety,
equity or wage and hour issues without fear of retribution. They can meet
across the table with their employer to negotiate better wages and working
conditions. They can bargain as a group for greater leverage to win decent
health care coverage and pensions. Without this right, employees are
forced into "begging, not bargaining."
Why should folks who aren’t in a union, and might not even want to be
in one, concern themselves about the right of other to bargain
collectively? The answer lies in basic standards that have been fought for
and won by those who have a union. Those standards benefit all workers,
union and non-union.
But many non-union workers seem to forget, or maybe they never
realized, that their benefits were gained because unions and their members
struggled to set the standard. These basic labor standards remain
protections for all of us. Consider how important just a few of them are
to our lives:
- Hourly workers have a right to overtime pay after forty hours of
work in a week.;
- All employees are covered by industrial insurance, a no-fault
system of benefits for all workers who are injured on the job;
- Workers have a right to a safe and healthful workplace, and may
file complaints against unsafe conditions;
- Child labor rules protect our kids from dangerous jobs and work
hours that hurt their school attendance and performance.;
- Unemployment insurance benefits are available to many workers who
are laid off through no fault of their own; and
- Most employees have a right to take family leave to care for a
sick child, parent or spouse.
Not one of those rights would be in place today if it hadn’t been for
the untold work of unions to pass, enact and defend them. Almost every
year, serious proposals to roll back, exempt or otherwise weaken those
standards must be answered and defeated in the legislature.
In other words, establishing the standard is only the first step. The
harder, longer job is to maintain and defend these standards from erosion
or full frontal assault. Unions and their members are the front line
defenders of these basic standards both in state law and in their
contracts. You can bet that business interests maintain a constant
pressure to roll back and reduce them.
Last fall, voters overwhelmingly passed an initiative that granted
homecare workers the authority to bargain collectively. Bills in the
legislature this year would grant a similar right to state employees,
employees and faculty at four-year state colleges, university teaching and
research assistants, and chiropractors who must negotiate with health
maintenance organizations. This effort is part of the long, hard job of
expanding rights to all workers.
It’s easy to forget. We are so busy trying to make ends meet and meet
all our obligations that we lose sight of the long-running effort to
steadily improve the wages and working conditions for all. For the last
100 years in our state, organized labor has pushed to improve basic labor
standards. But unless workers have a fundamental right to organize and
bargain collectively, that effort will falter.
As the public sector has developed to provide services such as
education to our citizens and their children, more employees are working
for the state or our state’s system of education. But collective
bargaining rights have not kept up with this growth. The current
restriction on state employees, faculty members and graduate students who
are employed by the University of Washington has led to an all out effort
to expand the right to bargain.
With likely layoffs and budget cuts in store for these employees, it’s
more important than ever that they have a seat at the bargaining table to
find true solutions to the state’s financial problems. With a real voice
on the job, they can help provide better services and accountability for
state programs. And they can join in the effort to strengthen and broaden
basic labor standards for us all.

WEDNESDAY,
FEBRUARY 6
"Celebration of Black History and
Labor" is Feb. 20 in Tacoma
Tacoma
longshoremen Willie Adams and Mike Chambers have helped organize an
impressive list of speakers for a "Celebration of Black History and
Labor" from 11 a.m. to 1:30 p.m. Wednesday, Feb. 20 at the Tacoma
Sheraton Hotel, 1320 Broadway Plaza. Admission is free. Speakers
include:
—
Paddy Crumlin
, National Secretary, Maritime Union of Australia.
—
Dr. Naomi Tutu,
daughter of South African Archbishop and Nobel Peace Prize recipient
Desmond Tutu. Dr. Tutu is Program Coordinator for the Race Relations
Institute at Fisk University.
— Prince Cedza Dlamini, grandson of former South African
President and Nobel Peace Prize recipient Nelson Mandela. Prince
Cedza, born to the royal family of Swaziland, travels the world to carry
on his grandfather's legacy.
— Jamal Joseph, film director, community activist
and cofounder of Impact Reportory Theater. Prof. Joseph teaches at
Columbia University, and directed Hughes Dream Harlem.
— Cicely Tyson, actress and humanitarian. Ms.
Tyson is one of the most respected and honored talents in American theater
and film, from her starring role on Broadway in the "Blacks" to
her Emmy-nominated HBO film "A Lesson Before Dying." She
has recently completed "The Rosa Parks Story," which will air on
CBS on February 3, 2002.
— Ossie Davis, leading African American playwright,
actor, director and star of television and movies. Mr. Davis made
his film debut in "No Way Out" with Sidney Poitier in 1950.
He was inducted into the theatre Hall of Fame in 1994. He is the
author of three children's books. He and his wife Ruby Dee
recently marked their 50th wedding anniversary with their joint
autobiography, "Ossie and Ruby: In this Life Together."
In
addition there will be entertainment provided by Darren Motamedy and
his band (with special guest artist Corla Wygal), Agrippa the Poet,
and singer/poet Veronica E. Williams.
For
more information, contact Willie Adams at (253) 593-4366.

TUESDAY,
FEBRUARY 5
ACTION ALERT
on state ergonomics rule!
The business community is working
overtime spreading
misinformation about the state's new ergonomics standard, and their
scare tactics are generating angry calls from business owners to state
legislators and the governor calling for delay or repeal of the rule.
The rule, in the process of being
phased in over six years, requires that employers work with their employees
to identify and fix workplace hazards. The goal is to prevent strains,
sprains and debilitating injuries from repetitive motion that represent the
single biggest occupational health crisis faced by workers. It has been
repeatedly proven that simple, inexpensive solutions to addressing these
ergonomic worksite hazards prevent injuries and save employers -- and the
workers' compensation system -- significant money.
But business groups inspired by
anti-regulatory ideology have spent the last two years exaggerating the
scope and costs of the ergonomics rule so that angry business owners will
contact their legislators and demand repeal of the rule or a delay in its
implementation.
These same business groups
succeeded in convincing Governor Locke to form a Blue Ribbon Panel on
Ergonomics, composed of experts from the private and public sector, to study
the state's efforts to educate employers about the rule and determine
whether it is ready for implementation. After a year of public
hearings and testimony (similar to those held before the rule's enactment in
May 2000) it is about to issue its findings in late February.
Organized labor is committed to
abiding by the decision of this Blue Ribbon panel of experts, which includes
representatives of Boeing and the business community, because we are
confident that the evidence in support of the standard is clear and
overwhelming. We also believe the Department of Labor and Industries
has gone to extraordinary lengths to educate and assist employers during the
past two years on how to comply with this critical rule.
CALL TO ACTION:
Please take a few minutes to call the Legislative Hotline at 1-800-562-6000
AND to e-mail Governor
Gary Locke and House Speaker Frank Chopp (D-43rd) expressing support for the ergonomics
standard TODAY! Tell them not to allow a legislative delay or repeal
of this critical workplace safety standard. Let’s wait and see what
the Blue Ribbon Panel’s report says about whether the rule is ready for
implementation.

TUESDAY,
FEBRUARY 5
Paul Robeson Memorial Concert organizers seek
assistance
This
May 18th will mark the 50th anniversary of Paul Robeson's historic
appearance at Peace Arch Park in Blaine for a protest of Sen. Joe McCarthy's
anti-communist agenda -- and plans are underway this year for a Paul Robeson
Memorial Concert celebrating international solidarity.
During
the height of the McCarthy blacklisting era in the early 1950s, Paul Robeson
-- a gifted musician, artist, athlete, scholar and activist -- was one of
thousands whose career was ruined and legacy tainted by rumor and innuendo.
Denied permission to leave the United States and sing at a Mine Mill
Conference in Vancouver, B.C., in January 1952, Robeson stood on the back of
a flat bed truck on May 18, 1952, and sang songs of defiance and solidarity
to some 40,000 people at the U.S.-Canadian border.
Now 50 years later on Saturday,
May 18, 2002, that event will be commemorated with another concert on the
border that aims to bring together people of conscience from Canada and the
U.S. to celebrate the life and achievements of Paul Robeson and to build
solidarity among those who are working for change.
Organizers are planning four hours
of inspiring music -- featuring both artists of major international stature
and great performers from the Pacific Northwest -- will be offered to the
general public free of charge. Other activities will include banner
making, a graffiti wall, video displays, giant puppets, information tables,
roving artists, and history in the form of memorabilia from the original
concert.
A group called the "Here We
Stand" Organizing Committee, which includes a number of representatives
of Canadian and American unionists and other cultural and social activists,
is looking for donations and volunteers to help plan and execute the
event. (Check out the Here
We Stand event website.) According to the committee's literature, "Some of the
issues we face today would be familiar to Robeson: solidarity in the face of
war, racism and oppression; others have new names such as globalization or
neo-liberalism, but the struggle is the same."
For more information on how you
can get involved, contact Earle Peach
at (604) 874-1256, or in Washington state, you can contact the AFL-CIO's Bob
Gorman at (206) 448-4888.

TUESDAY,
FEBRUARY
5
Sen. Murray takes White House to task over
Hanford cuts
Following is the transcript of an
exchange between Sen. Patty Murray (D-Wash.) and White House Budget Director
Mitch Daniels at today's Senate Budget Committee hearing on President Bush's
proposed FY 2003 Budget:
Murray: Mr.
Daniels, in recent days and in your Op-Ed article over the weekend, you've
said that our country will need to make sacrifices on the domestic
front to pay for needed investments in security. As you have noted,
ours is not the first generation of Americans to face this challenge.
Our fathers and mothers, our grandparents, and other generations of
Americans have all struggled to protect America's freedoms.
In World War II and the Cold War,
we faced a grave threat to our existence. The people in my home state
of Washington were asked to take up the challenge of the Manhattan project.
Throughout the Cold War, the people of the Tri-Cities in Washington state
produced the material that went into our strategic arms. We won because of
the sacrifice of the people of that community. One legacy of that
sacrifice is the freedom we enjoy today.
But there is another legacy that
weighs on all of us in the Pacific Northwest. That other legacy is nuclear
waste. We have one of the most polluted sites in the world, the
Hanford Nuclear Facility on the banks of the Columbia River. Now I know my
friend and colleague from New Mexico shares my passion for this particular
issue. Unfortunately, President Bush's budget -- for the second year in a
row -- underfunds the critical cleanup effort required for the Hanford
Nuclear Reservation. I think this example is indicative of a larger
problem with this budget.
President Bush's priorities in
this budget don't reflect the priorities of many Americans, whether it's
Hanford cleanup funds, or the Social Security and Medicare Trust funds.
And the truth is, we're in this position, in part because of the recession,
in part because of September 11th, and in large part because of the
President's tax cut, which you told us would get us out of the recession.
Mr. Daniels, last year, when we heard rumors that the President's budget
would cut Hanford funding, I called you. You assured me that Hanford
would not be cut. But when the budget came out, Hanford funding was
cut, and cut dramatically.
Mr. Daniels, I want to ask you
this morning, do you agree that given the sacrifice the people of the
Tri-Cities have made to help us win World War II and the Cold War that we
have an obligation to clean up the waste at the Hanford Nuclear facility?
Daniels:
Absolutely, Senator. The good news, I hope, is that the
Administration in this budget has launched a substantial reform of what has
really been a poorly run program.
Murray:
Are you saying that Hanford Nuclear Reservation has been poorly run?
Daniels:
I'm saying that across the front of these environmental cleanups it's
unacceptable that we will still have nuclear waste lying around in 70 years.
And that's the situation this Administration found when it came to office.
In this budget we propose first of all more spending and second -
Murray:
-- Mr. Daniels, I'm sorry, but the way I read this budget, Hanford will
receive a lot less funding.
Daniels:
Well, we'll work with you to find the right amount of money, but the most
important thing is how we spend it. We've been spending billions of
dollars - we've had $73 billion in projected cost overruns across the front.
This needs to be addressed. Secretary Abraham has an aggressive plan.
His idea would be to get these sites cleaned up more quickly under new
contracts.
Murray:
Mr. Daniels, aren't you aware that there are contracts in place that if we
don't fund to begin with they are going to cost us more in the future?
If we undo those contracts -- take our name away from them- they
are going to be renegotiated and I have never known a contract to be
renegotiated for a lesser amount.
Daniels:
Well, I would recommend that you speak with Secretary Abraham about it, he's
got a very active plan. These arrangements, as I say, are frankly
unacceptable and I think would be to you. I don't know the end date
for Hanford off the top of my head, but I know that many of the other sites
would be sitting there for decades under the existing plans.
Murray:
Well, Mr. Daniels, I would remind you that we have the Tri-Party Agreement
in place and we are under a legal obligation to cleanup Hanford Nuclear
Reservation. My home state of Washington has been on the verge of a
legal challenge to this for years and none of us want to go down that route.
But if we don't fund the cleanup of Hanford, it not only puts the lives of
the people of the Tri-Cities at stake -- as well as the entire Pacific
Northwest -- it doesn't fund the legal obligation we have and we may well
see a challenge from the state of Washington. And it's the wrong message to
send today to everyone we are asking to make a challenge for the war today
that we're not going to be there when that war is over.
Daniels:
Senator, our objective is to see these sites cleaned up more quickly, and I
would think that would be your objective too. This is not about the amount
of money we can pour into bad contracts.
Murray:
Oh, that has been my objective and that is my state's objective too.
Are you saying that the contracts we have in place today at Hanford are bad?
Daniels:
That's a question for Secretary Abraham. It's his plan -
Murray:
I will certainly ask him as well, but I would tell you, Director Daniels,
that I will not let the people of my home state down on this issue. I will
do everything I can to meet the obligation of the people of my state who
have sacrificed for our freedom. If my time's not up, I want to
ask you one other question.
Let me turn to another topic. Your
budget assumes a major reduction in transportation spending. In Washington
state we have the second highest unemployment in the nation right now.
We have the second-worst traffic in the nation. That puts a huge economic
burden on our families and our businesses. It means less productivity
and less efficiency. Businesses are leaving my state right now because
of the lack of investment in infrastructure and transportation.
Cutting the budget by $9 million
is not going to help.
Does this Administration realize
that our transportation infrastructure affects our jobs, affects our
productivity and our economic growth?
Daniels:
Let's start with dealing with some of those pesky facts, Senator. We have no
discretion in this matter. Congress passed a bill - it was a good one - I
think you voted for it - that matches spending with transportation, tax and
fee income. And we simply apply a formula, the Departments of Transportation
and Treasury do that, as you know, and last year that led to a gigantic
increase in transportation and highway funding. Under that formula,
which Congress prescribed, as applied this year we discovered that we got
ahead of ourselves -- $4.5 billion ahead of receipts last year.
And we have simply, faithfully applied the same formula that led to a $4.5
billion - I won't say windfall, I guess, let's say advance-
Murray:
Investment in infrastructure -
Daniels:
- Well let's say advance and now we're catching back up. The bill
that Congress wrote is a good one it has led - will lead - through the end
of this fiscal year to $9 billion in additional highway spending over the
previous system. Up until a few years ago - as you know - gas
tax revenues and other transportation revenues were used for other
purposes.
Murray:
My time is out, but I would just say that we did have an opportunity in this
budget as presented by the Administration to help make up some of that
shortfall -- if the priority was there from the Administration -- and
understanding that investing in our critical infrastructure - our bridges,
our highways, our roads - would not only help jobs today, which is an
important part of economic recovery, but also would provide critical
infrastructure for economic development in the future.
Daniels:
Well, we agree with the importance of spending. Over the 2 year period
the same amount of money will be spent - much more than previously.
And incidentally, you might be happy to know that because we don't have any
new projects to start on an outlay basis - how much is actually spent - how
many miles are actually paved, how many people are actually employed is
virtually identical to last year, or I should say that '03 will be identical
to the current fiscal year. So, this formula that Congress wrote is a
good and fair one. We've simply applied it as the law requires we do, but I
think it's a little unseemly for road builders and others who loved it when
it led to a giant increase to protest when the same formula corrects itself.
Murray:
I'm not a road builder, but I do care deeply about my home state and its
ability to have the infrastructure it needs for the future. Thank you,
Director.
Daniels:
Thank you.

MONDAY,
FEBRUARY 4
Must-see TV: Moyer's "Trading
Democracy" Tuesday on PBS
The following heads-up comes from
Michael Dolan of Public
Citizen's Global Trade Watch:
It is not often that we promote TV
programs, but on Tuesday February 5th at 10:00 PM we should all be watching
a Bill Moyers documentary on PBS entitled: "Trading Democracy."
"Trading Democracy" is a
one-hour documentary that covers, in understandable terms, the legal and
technical aspects of NAFTA's investor rules. These rules allow corporations
to sue countries directly to overturn legitimate public interest laws and
regulations when they believe their actual or potential corporate profits
have been undermined. Incredibly, these suits are decided in secret by
unelected bureaucrats who have been given the power to determine whether
laws ranging from zoning ordinances to environmental protections
constitute an interference with corporate profits.
Already Chapter 11 has led to
corporate assaults against health, safety and environmental laws, with
one company demanding compensation close to $1 billion. Beyond that, even
"Buy America" laws intended to protect our country's steel
industry are now under attack by multi-national corporate profiteers.
Amazingly, the Bush Administration
is now in negotiations to expand this dangerous NAFTA investor provision to
31 more countries in the hemisphere, through the so-called Free Trade Area
of the Americas (FTAA). The first step in paving the way to this
expansion of the reach of Chapter 11 will be a soon-to-be held senate vote
on the Baucus/Grassley Fast Track bill.
Here's a press release regarding
"Trading Democracy:"
Three years after a Mississippi
jury found a Canadian-based conglomerate guilty of fraud in attempting to
put a family-owned Biloxi funeral home out of business, the Canadian company
filed a claim against the United States, demanding $725 million in
compensation.
When California banned a gasoline
additive that had contaminated drinking water throughout the state, another
Canadian firm sued the U.S. government to force citizens to pay nearly 1
billion dollars for its potential lost profits.
In what one attorney called
"an end-run around the Constitution," corporations are using a
little-known provision of the North American Free Trade Agreement (NAFTA) to
challenge public laws, regulations and jury verdicts not only in the United
States, but in Canada and Mexico as well. And, they are arguing those cases
not in courts of law, but before secret trade tribunals.
How can this be happening?
And why do so few people know about it?
In the latest in their series of
exposés on the secret recesses of American democracy, Bill Moyers and
Sherry Jones uncover how multinational corporations have acquired the power
to demand compensation if laws aimed at protecting the environment or public
health harm them financially. The one-hour documentary, BILL MOYERS
REPORTS: TRADING DEMOCRACY, premieres February 5 at 10:00 p.m. (ET) on PBS
(check local listings).
"When the North American Free
Trade Agreement became the law of the land almost a decade ago, the debate
we heard was about jobs," notes Bill Moyers. "One provision was
too obscure to stir up controversy. It was called Chapter 11, and it
was supposedly written to protect investors from having their property
seized by foreign governments. But since NAFTA was ratified,
corporations have used Chapter 11 to challenge the powers of government to
protect its citizens, to undermine environmental and health laws, even
attack our system of justice."
Speaking with legislators, public
policy experts, community leaders and citizens about the lawsuits filed
under NAFTA's Chapter 11, BILL MOYERS REPORTS: TRADING DEMOCRACY unravels
the hidden repercussions of a treaty that was supposed to promote democracy
through free trade, but now appears to have given deep-pocketed corporations
the means to undermine democracy across international borders.
The program explores the case of
Methanex, a Canadian company that is the world's largest producer of the key
ingredient in the gasoline additive MTBE, which was found to be a
carcinogen. In 1995 MTBE began turning up in wells throughout
California, and by 1999 had contaminated thirty public water systems. The
state ordered that the additive be phased out. Methanex filed suit
under NAFTA's Chapter 11, seeking $970 million in compensation for loss of
market share and, consequently, future profits.
With regard to the Methanex case,
environmental attorney Martin Wagner tells Moyers, "they're saying that
California either can't implement this protection or that they get a billion
dollars. People should be outraged by that."
As Moyers reports, many people who
have been affected by MTBE contamination are indeed outraged. But they
are helpless to do anything. The NAFTA tribunal that will decide the
Methanex case - like all the tribunals hearing Chapter Eleven-based cases -
is closed to the public. Yet, it is the taxpayers "who will foot
the bill if the tribunal decides in favor of the Canadian company,"
says Moyers.
But the ramifications for the
public go well beyond the loss of taxpayer dollars, a journalist William
Greider explains. "If Methanex wins its billion dollar claim over
California environmental law, there ain't gonna be many states enacting that
law, are there?" he says, adding that the NAFTA provision "hobbles
the authority of government to act in the broader public interest.
And, in fact, that was the idea in the first place."
Addressing a Chapter 11 case in
which the Ethyl Corporation, an American manufacturer of another gasoline
additive called MMT, successfully sued Canada over a ban on the product,
Greider tells Moyers: "Governments are already being intimidated
by the mere threat of a claim being filed against some regulatory action.
If you're a civil servant, or even a political leader, you've got to think
twice when a corporate lawyer comes to you and says, quite forcefully, we're
going to hit you for a half a billion dollars if you do this."
Moyers also takes his
investigation south of the border to the Mexican state of San Luis Potosí,
where an American company called Metalclad tried to bulldoze over the
protests of both state and local governments to reopen a toxic waste dump
that many citizens feared was making them sick. When Metalclad was stopped
by the local town council the company invoked Chapter 11 and was awarded $16
million in compensation. The crux of Metalclad's victory was the
Chapter 11 phrase "tantamount to expropriation." As Martin
Wagner explains: "Not only do governments have to compensate when
they expropriate or take away property, but they have to do so whenever they
do something that is 'tantamount to expropriation'."

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