Five Reasons Walmart’s New ‘Commitment’ to American Manufacturing is Nonsense

Walmart is hosting a manufacturing summit in Denver this week as part of its new program to supposedly invest in products made in America for its stores across the country. The retailer is claiming its new plan will invest $250 billion over the next decade and create 1 million jobs. We’re not buying it.

AFL-CIO President Richard Trumka addressed Walmart’s summit and announcement:

But workers will not benefit from a Walmart-ification of our manufacturing sector. Jobs in the Walmart model won’t restore America’s middle class or build shared prosperity given the company’s obsession with low labor costs and undermining American labor standards. And the company’s ‘commitment’ to American manufacturing is meaningless unless it actually increases the proportion of its products that are American-made.

Here are five reasons why Walmart’s plan is nonsense:

1. The whole thing is misleading. When you dig deeper, you find that all Walmart is doing is counting the company’s natural growth as “new” investment. If the company maintains its current percentages of U.S.-sourced goods and continues to grow at the same rate as it has the last three years, $262 billion will be spent on U.S.-made goods anyway without Walmart making any changes or doing anything new. Doing a little less than what you’ve been doing and calling it “progress” isn’t exactly admirable.

2. As Scott Paul of the Alliance for American Manufacturing notes, Walmart’s altruism doesn’t quite stand up to scrutiny:

…in some cases—the economics now favor “reshoring” of work back to the U.S., due to an emerging domestic energy cost advantage, rising wages in Asia, and wage stagnation in the U.S. (which Walmart might know something about). And don’t forget to consider the challenges that come from outsourcing: supply chain disruption, quality and inventory control issues, intellectual property theft, and high shipping costs.

3. Walmart is the biggest importer in the United States and it has been increasing how much it imports every year. The company now imports 2.5 times as much as it did in 2002. Walmart should make a solid commitment to cut back on its growth in  imports, after decades of massive increases, to create a real net gain for American workers.

4. Walmart is off to a rocky start helping create U.S. manufacturing jobs. In the first year of the new plan, Walmart created only 2,000 new jobs, putting it way behind schedule toward reaching that goal of 1 million new jobs.

5. As the largest private employer in the nation, Walmart should start with itself to create real change for America. At the rate Walmart workers are paid, they won’t be buying many U.S.-made products or imports. Walmart must invest more in its own workforce if it wants a “buy American” strategy to succeed.

Walmart cashiers make, on average, less than $25,000 a year. An April 2014 study by Americans for Tax Fairness estimated that subsidies and tax breaks for Walmart and the Walton family cost taxpayers approximately $7.8 billion per year, including about $6.2 billion in assistance to Walmart workers due to low wages and inadequate benefits.

Trumka concluded:

This initiative seems like an attempt to change the conversation from the need for Walmart to improve jobs for its 1.4 million retail workers in the United States. If Walmart is truly committed to rebuilding the American middle class, it can start with its own workers, most of whom make less than $25,000/year and struggle to make ends meet.

Walmart should use its two-day summit to prove the company is committed to real and substantive change and an end to corporate whitewashing.

Reposted from AFL-CIO NOW

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Trumka: Ferguson Tragedy Highlights Race and Class Divisions We Have Long Neglected

AFL-CIO President Richard Trumka released the following statement in response to events in Ferguson, Missouri:

Our thoughts and prayers are with the family of Michael Brown, the teenager who was recently killed in Ferguson, Missouri.  His death and the anguish of the Ferguson community have rightfully become a national story.  Despite the tragedy, there is also an opportunity to have an important discussion about issues that we have long neglected in this country.  This conversation can only be had if cooler heads prevail.  We are a nation that still remains segregated by race and class and tragedies like this highlight those divisions.  It is encouraging that the Justice Department and FBI are closely investigating this incident so that the community of Ferguson is served.

Reposted from AFL-CIO NOW

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Good News for All Americans in Social Security, Medicare Reports

Photo via the National Committee to Preserve Social Security and Medicare

The annual reports from the Social Security and Medicare Trustees released today “have good news for all Americans,” said AFL-CIO President Richard Trumka.

Social Security and Medicare will be there for us and our families if elected leaders listen to the American people and reject calls to cut benefits. Instead of undermining these crucial programs, we must build on their success and adopt measures to strengthen and expand them.

Richard Fiesta, executive director of the Alliance for Retired Americans, said the most important lesson from the Social Security report “is that Social Security has a large and growing surplus. Today’s report projects Social Security’s cumulative surplus to be roughly $2.8 trillion in 2014, growing to about $2.9 trillion around 2020.

Trumka noted that while “America’s most important retirement program” will remain strong for many more years to come:

It has become increasingly clear, however, that strengthening Social Security for the future must include improvements in benefits. Social Security remains the sole retirement income plan that is broadly available and that Americans can count on to provide secure lifetime benefits.

The Medicare report, Fiesta said, “reminds us once again that the Affordable Care Act is controlling health care costs.” He said:

It is great news that the life of the Medicare Trust Fund has been extended by another four years to 2030. Attempts to repeal health care reform would only undo the progress we have made in controlling health care costs.

The Social Security Trustees reported once again that the Disability Trust Fund can pay full benefits until 2016, with enough revenue after that time to cover about 80% of promised benefits. Trumka said:

Congress should act soon to ensure disabled workers and their families will continue to receive the benefits they have earned.  This can be done by allocating a larger share of current payroll tax contributions to the Disability program, as has been done many times before. Congress should reject calls to misuse this opportunity to undermine the sole source of disability income protection that is working well for America’s families.

Fiesta warned:

Current and future retirees must be wary of those politicians who will use today’s Social Security and Medicare Trustees reports as political cover for radical changes that would put seniors, the disabled and the families of deceased workers at risk.

Read Trumka’s full statement here and Fiesta’s here.

Reposted from AFL-CIO NOW

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Obama and Biden to Push for Infrastructure Spending on Wednesday

Photo courtesy Andrew Dallos on Flickr

On Wednesday, President Barack Obama will visit the Tappan Zee Bridge in New York, where he will call on more federal spending for infrastructure projects.  Obama has made numerous proposals to increase spending on bridges, roads and other infrastructure projects, but Republicans in Congress have blocked those efforts. The Tappan Zee Bridge is currently in the process of being replaced, financed by a record $1.6 billion federal loan. The old bridge, which opened in 1955, has fallen into disrepair and is serving a daily capacity above what it was designed for. While Congress has failed to provide the funds needed to move forward, Obama is using alternate methods, such as the loan, to help rebuild the country’s crumbling infrastructure.

“The President will also highlight efforts by the administration to cut through red tape and modernize the federal infrastructure permitting process, and reduce project approval time lines,” the White House official said.

Meanwhile, Vice President Joe Biden will appear in Cleveland to give a speech on similar themes of investing in infrastructure and the economy.

As part of Infrastructure Week 2014, AFL-CIO President Richard Trumka will speak at a rally on Thursday in front of the AFL-CIO headquarters about the vital need for upgrading our infrastructure and the positive impact doing so will have on the economy.

Trumka said:

Putting money in roads and bridges is like planting seed corn. Investing in good jobs yields a good return. When you put seed in the ground, you get something to harvest. When you put cement in the ground, you get roads. When you put steel in the ground, you get train tracks. You get it. But if you don’t put that seed in the ground, that’s not smart. It’s not sensible. It’s not “thinking like business.” It’s cutting yourself off at the knees. And that’s what these politicians are doing to the American economy….

Trumka pointed to a recent American Society of Civil Engineers report that said the country needs to spend $3.6 trillion just to make sure that our current infrastructure doesn’t fall apart, with a similar investment needed to create the next generation infrastructure that will grow the economy.

Follow updates on infrastructure week on Twitter using the hashtag #RebuildRenew and learn more about Thursday’s Jobs and Infrastructure Rally in Washington, D.C., here.

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Workers Memorial Day: Honor the Dead, Fight Like Hell for the Living

Workers Memorial Day: Honor the Dead, Fight Like Hell for the Living

Today is the 25th annual Workers Memorial Day, and around the country workers, workplace safety activists and community and faith leaders are honoring the men and women killed on the job and renewing their commitment to continuing the campaign for strong job safety laws and tough enforcement of those laws.

AFL-CIO President Richard Trumka says Workers Memorial Day honors “the ultimate sacrifices working people make to achieve the American Dream.”

No worker should die on the job. Every one of the 150 working men and women who die every day from injury or occupational disease serve as a constant reminder of the dangers too many face at the workplace.

There have been major improvements in the workplace safety rules and significant reduction in fatalities, injuries and illness on the job since the Occupational Safety and Health Administration (OSHA) began operations and the Occupational Safety and Health Act went into effect April 28, 1971.

But those key workplace safety milestones didn’t just happen. They came about because workers and their unions organized, fought and demanded action from employers and their government. Virtually every safety and health protection on the books today is there because of working men and women who joined together in unions.

Much more still needs to be done.

In 2012, 4,628 workers lost their lives on the job (up from the 4,400 previously reported). But that is only a part of the deadly toll. Each year, 50,000 workers die from occupational diseases caused by exposures to toxic chemicals and other health hazards. That’s a total of 150 workers dying each and every day.

Some employers cut corners and violate the law, putting workers in serious danger and costing lives. Workers who report job hazards or job injuries are fired or disciplined. Employers contract out dangerous work to try to avoid responsibility. As a result, each year thousands of workers are killed and millions more get injured or contract diseases because of their jobs.

The Obama administration has moved forward to strengthen protections with tougher enforcement and a focus on workers’ rights. Also much-needed safeguards stalled for years due to business opposition have finally started to advance, including a new proposed OSHA silica standard to protect workers from this deadly dust that causes disabling lung disease.

But other protections from workplace hazards have stalled in the face of fierce attacks by business groups and the Republican majority in the U.S. House of Representatives who have launched an all-out attack on all government regulation and safeguards.

Trumka said that as the nation remembers those who have died on the job:

We should rededicate ourselves to holding companies accountable for putting profits over people, and we must demand stronger safety standards in the workplace. Until every worker, from the farm to the factory, is guaranteed the peace of mind of a safe workplace, our job will never truly be done.

Reposted from AFL-CIO NOW

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Senate OKs Jobless Benefits Renewal, Tell the House to Do the Same

Senate OKs Jobless Benefits Renewal, Tell the House to Do the Same

More than three months after House Republicans leaders allowed the Emergency Unemployment Compensation benefits program to expire, nearly 2.8 million jobless workers have lost their economic lifeline. Monday, the U.S. Senate gave those workers a ray of hope when it passed (59-38) a bill reviving the program for long-term jobless workers. Now it is up to the House to keep that hope alive.

House leaders have said they won’t take up the Senate bill, which provides retroactive benefits to Dec. 28, but only extends the program to May 31. Congress is due to leave town for a two-week recess.

Call your House members today at 845-809-4509 and urge them to pass the emergency unemployment benefits extension now. 

Sen. Jack Reed (D-R.I.), chief sponsor of the Senate bill (S. 2077), said:

The beneficiaries of this bill have earned these UI [unemployment insurance] benefits through hard work, and they have the right to expect their representatives in Congress would not stand in the way of this emergency assistance. Reauthorizing emergency UI benefits in times of economic hardship has historically not been a partisan issue, and it’s time we revert to that longstanding tradition of extending a hand to our fellow Americans in their time of need.

AFL-CIO President Richard Trumka said:

It has been a long cold winter for 2.8 million Americans who have been callously cut off from receiving emergency unemployment benefits.  Today’s vote in the Senate is a critical step in thawing the long economic freeze that families have suffered through.  What’s next?  Finding enough Republican leaders in the House who have the backbone to stand with working people rather than cater to extreme partisan ideology.  We believe it’s possible. We call on Members of the House to quickly renew these crucial benefits.  It is shameful that families in need have had to wait this long.

Reposted from AFL-CIO NOW

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Senate Reaches Bipartisan Deal on UI

Senate negotiators announced this evening that they have reached a bipartisan agreement on a bill to revive the Emergency Unemployment Compensation benefits that expired at the end of 2013. Since then more than 2 million long-term jobless workers have lost their benefits.

Action on the bill will not occur until at least March 24, following the upcoming Senate recess/state work period. Details on the bill were not released. In a statement, AFL-CIO President Richard Trumka urged lawmakers to move quickly.

Every day that goes by where families have to decide between heating bills and putting gas in the car to drive to a job interview is a day that we are failing America’s workers.  The Senate should act immediately to extend unemployment benefits and the House should quickly follow.

Since the first of the year Republicans have blocked action on several attempts to revive the jobless aid for long-term unemployed workers. But Trumka said that today’s announcement “is a good sign that there is bi-partisan agreement and that the Senate is working together to get this done.”

If the Senate acts swiftly and responsibly it looks like 2 million jobless Americans may be closer to getting relief in the form of emergency unemployment insurance.  We will have to look closely at what a final deal looks like and whether it adds additional burdens to workers who are already struggling.

Reposted from AFL-CIO NOW

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Labor Leaders See Promise in Organizing in Texas

The AFL-CIO Executive Council is meeting in Texas this week as a sign of confidence that the southern state has great potential for workers who are organizing on the job. A Houston Chronicle profile takes a look at efforts in Texas and goals for broader organizing efforts in the South:

The AFL-CIO executive [council] has come to Texas, setting its sights on what has been inhospitable terrain and betting workers in the state can be drawn to organized labor’s efforts to raise wages.

Buoyed by the growth of the energy industry along the Gulf Coast and fortified with organizing wins at poultry plants and manufacturing parts makers, the heads of some of the nation’s largest labor unions are meeting in Texas for the first time Tuesday and Wednesday at the Hilton Americas-Houston.

Members of the executive [council] hope the labor federation can continue to notch victories across the South, either through traditional organizing or public campaigns to boost the minimum wage.

They are meeting in a city where, less than a decade ago, labor celebrated its first large-scale victory in a quarter-century when a union once affiliated with the AFL-CIO organized the janitors who clean the largest office buildings.

Richard Trumka, president of the AFL-CIO in Washington, D.C., said the federation wants to send the message that the labor federation is expanding its horizons to new places and to new people.

“Our focus is on raising wages,” Trumka said, claiming during a news conference Monday that “everyone from the pope to the president” is embracing the global efforts.

Read the full article.

Reposted from AFL-CIO NOW

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Trumka: ‘Right-Wing Zealotry’ Played Role in VW Vote

After unprecedented interference from politicians and out-of-state extremists like Grover Norquist and the Koch brothers, workers at Volkswagen’s Chattanooga, Tenn., plant voted 712–626 against representation by theUAW that would have led to the establishment of a works council, the first such model of labor-management relations in the United States.

AFL-CIO President Richard Trumka says the workers stood up to “enormous odds to try to form their own union and to create an historic new model of workplace governance.” He adds:

Unconscionably, what should have been a local workplace decision by workers and management was turned into an experiment in new forms of right-wing zealotry over issues having nothing to do with how stakeholders decided for themselves the best way to build automobiles and create a strong Chattanooga community.

While Volkswagen had agreed to remain neutral, Republican lawmakers and right-wing groups mounted a large-scale anti-union attack. UAW Region 8 Director Gary Casteel, who directs the union’s southern organizing, says:

Unfortunately, politically motivated third parties threatened the economic future of this facility and the opportunity for workers to create a successful operating model that would grow jobs in Tennessee.

Says UAW President Bob King:

While we certainly would have liked a victory for workers here, we deeply respect the Volkswagen Global Group Works Council, Volkswagen management and IG Metall for doing their best to create a free and open atmosphere for workers to exercise their basic human right to form a union.

Trumka says:

But, make no mistake, the closeness of the results and the courage and tenacity of union supporters prove that this election is a minor setback, and not a permanent defeat.

Reposted from AFL-CIO NOW

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AFL-CIO President Richard Trumka to Appear on CNN’s ‘Crossfire’ Tonight

What’s the state of the U.S. economy? Why do we need a higher minimum wage? Watch AFL-CIO President Richard Trumka tonight at 6:30 p.m. EST tackle these questions on CNN’s “Crossfire” with co-hosts Van Jones and S.E. Cupp and former Hewlett-Packard CEO Carly Fiorina.

You can join the conversation online on Facebook and Twitter by using the hashtag #Crossfire.

Reposted from AFL-CIO NOW

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