Category Archives: Labor

Freeport Is Not a Democrat vs. Republican Issue

By Arun Gupta, November 2, 2012, The Progressive

The Rev. Al Sharpton, host of MSNBC’s Politics Nation, led a rally in support of Sensata workers in Freeport, Illinois on Saturday, October 20, 2012. Standing next to him is 16-year-old Karri Penniston, who was arrested in October protesting the offshoring of the Sensata factory to China by Mitt Romney’s Bain Capital, which will cost 170 workers their jobs, including Penniston’s mother.


FREEPORT, Illinois—The central business district in this city of 25,000 is lined with century-old brick buildings housing mom-and-pop shops – Edith’s Bridal, Christina’s Bakery, Mort’s Bar & Grill, Heinrich Accounting and Kunz Brothers Auto Parts. At Nine East Coffee, a block away from Classic Cinemas, the staff greets customers by name. The Stephenson County Farm Bureau office downtown attests to the thousands of acres of corn, wheat, soy, and hog and cattle farms that envelope this Northern plains city.

Freeport’s small-town feel is not all by choice. Its timelessness stems from being a backwater in the global economy. Locals say more than 90 commercial buildings and many more houses lie abandoned. An avenue downtown has been closed since September as the city struggles to find $100,000 to repair a crumbling bridge. Hip retailers have forsaken the town, and the chains sprinkled on the edges, Dollar General, Payless Shoes, McDonald’s and Walmart, specialize in squeezing profit from threadbare households. With a shrinking population and an unemployment rate near 12 percent, Freeport’s economy is so depressed that discount retailer Kmart plans to close its doors in January 2013 after 20 years in the town, throwing 45 employees out of work.

Right before Kmart goes dark Sensata Technologies will finish moving its production line from Freeport to China, leaving 170 more workers without jobs. The offshoring of the factory, which makes electronic sensors and controls for automobiles, would not raise eyebrows. Since NAFTA went into effect in 1994, millions of U.S. jobs have fled to countries with low wages and lax regulatory environments.

Sensata is different, however. It’s become an election lightning rod because it was created in 2006 by Bain Capital, the company founded by the GOP presidential nominee Mitt Romney. In October 2010 workers learned their factory and three others owned by Honeywell had been sold to Sensata. Newspapers quoted assurances from Honeywell that “all of the affected employees in Freeport … will be offered jobs with Sensata when the deal is closed.”

Cheryl Randecker, who’s worked at the Honeywell plant for 33 years, says in January 2011 the workers were ushered into a room where “a big spread of food” was laid out. Within three minutes, she says, “We were told, ‘Welcome to Sensata. We’re closing the plant and outsourcing to Malaysia, Mexico and China.’ ” The workers were resigned to getting the short end of the stick until a chance encounter in June with Chicago-based labor organizers galvanized them to make a stand against shipping jobs overseas.

After local protests and dogging Romney at the Republican National Convention in Tampa, workers built the “Bainport” encampment on the Stephenson County Fairgrounds across from Plant. No. 4 on Sept. 12 and have occupied it for more than 50 days. Liberals and labor have flocked to the camp, which has featured rallies and protests led by the Rev. Jesse Jackson and the Rev. Al Sharpton, and hosted live broadcasts by Democracy Now! and “The Ed Show.”

While grateful for the support, the Sensata workers and unions backing them are at a loss for how to stop offshoring that leaves part-time, low-wage jobs in its wake. They want American workers to “wake up,” but pin their hopes on the Democrats who encourage job flight abroad and McJobs at home as much as the Republicans. A few unions have taken up the challenge of organizing the Walmart economy, but the projects are in their infancy. So the Sensata workers and unions have retreated to a fortress of conservatism – mourning the lost “American Dream” appealing to national interest, and excoriating “Communist China.”

“IT’S DEMEANING”

The Bainport protesters have two goals. Tom Gaulrapp, a 33-year-long employee at the plant, says at first they “hoped for a miracle that we would get our jobs saved. Now we’re trying to be an example. Maybe some other businesses planning to outsource will take a look and say we don’t want that publicity.”

The second goal is to get their full severance, which was cut from one year to six months for many longtime employees two years ago.

Adding insult to injury, workers were told they had to train their replacements if they wanted any severance. Dot Turner, who’s worked at the plant since 1969, says “it’s demeaning” to train the workers from other countries. “Normally a plant can just move an operation and train them over there. It tells you the jobs are highly skilled.” She says until the protests began, “They used to have 40 to 50 workers from Mexico and China at one time.” Now they’re all gone.

With cameras trained on their camp, the protesters also want to ignite a bigger movement. On a crisp Saturday afternoon, Turner told a rally of a few hundred people, “If we did this all over the country we could stop … the outsourcing to Communist China. We’re fighting the rich. The wealthy are trying to stamp out the middle class.”

Their defiance is matched by fear. Worry clouds Randecker’s face as she says, “I don’t know what the future holds. It’s lose-lose around here. There aren’t opportunities to make this kind of money.” A single mother, Randecker says her 20-year-old daughter moved back home from an out-of-state college to save money and now struggles as she works work part time and continues her nursing studies full time at a community college. Randecker says a friend started at Kmart the same week the store announced its closing.

Gaulrapp asks, “Who’s going to hire me?” Turner sums it up bluntly, “Most of the employees have concluded they’re going to be without jobs in a town without jobs.”

They’re aging workers in a dilapidated city that begins each day a little poorer and a little less relevant to the markets. Randecker, Gaulrapp and Turner decry greed, a community left devastated, and the lost ideal of secure jobs in exchange for hard work and loyalty. They pine for a time when products were “made in America,” manufacturing jobs were plentiful, and paychecks could support a family and their dreams.

Reflecting on 43 years of work at the factory, Turner says, “You know it’s got to be a nice place to work. The pay is good. My husband and I put three children through college. All three have master’s degrees.” When Turner started work there as a newly married 18 year old, she says, “I thought I died and went to heaven the conditions were so nice.” She had left a job at Structo, a long-gone local manufacturer of toys and barbecue supplies. Decades later Turner still winces at the memory of hoisting grills to overhead hooks all day. At Honeywell, Turner says, “You could take bathroom breaks, smoking breaks, as long as you made your productivity.”

“WE BUILT IT BETTER”

The Sensata workers’ perspective is echoed by workers from as far away as Indiana, Iowa and Wisconsin who’ve made the pilgrimage to Bainport. On a Friday night, as Ed Schultz prepared to broadcast, there were machinists, teamsters, autoworkers, electricians, government employees, aerospace workers and hundreds of steelworkers, who unsuccessfully tried to organize Sensata decades ago.

Jeff Scanlan, an organizer with the Sheet Metal Workers International Association, says, “I’ve watched the steady decline of manufacturing in this area for the last 30 years. We built it better over here.” The 55-year-old Scanlan adds, “I had a good career in the trades. I was able to send my two girls to college. But I’m scared to death they’re going to do worse than I did.”

Scanlan and others rattle off manufacturers that once thrived in Freeport: Structo, Burgess Battery, and the W.T. Rawleigh Company, which sold household and nutritional products, are gone. Honeywell, Newell Rubbermaid and Kelly Tire (now Titan Tire), remain but factories have been padlocked shut and workforces have been chopped by 50 percent or more.

As for how to bring back good-paying jobs, Scanlan says, “Put tariffs on everything coming in from overseas. … We used to manufacture it, now we just install it.” When asked what about slapping tariffs on the thousands of goods found on Walmart shelves, he reiterates, “Everything.”

Just as Freeport exemplifies a conservative ideal, so does organized labor at Bainport. They accept the language of the market, returning value, increasing productivity, keeping labor flexible, prizing the home-owning nuclear family as the social building block. They proclaim, “The American worker can work as hard as anyone.” In return they only ask for stable jobs that pay “fair wages.” Few oppose, much less question, the dominance of corporations.

The darker times seem, the harder labor clings to the fading memory of the social compact, oblivious to the fact that Wall Street’s agenda transcends party labels. When I mention Clinton bulldozed Congress to ratify NAFTA, the usual reply is, “He now admits it was a mistake.” So what about Obama pushing the Trans Pacific Partnership, described as NAFTA on steroids? Silence. Though Jeff Scanlan confides, “It’s tough out there. I don’t have the answers.”

PARTISAN FOG

Solidarity does cross borders at times. Randecker says Chinese engineers asked her about an anti-outsourcing sticker on her shirt. “We explained it to them. We said it’s not your fault. It’s our government, your government and the corporations’ fault.” But with few opportunities to build international linkages among workers, the path of least resistance is appealing to patriotic capital and flirting with China-bashing, just as labor in the 1980s blamed its woes on Japan.

Programs like “The Ed Show” reinforce this tendency by obscuring the issue in partisan fog. Schultz described Freeport as “the belly of the beast of Mitt Romney`s economy.” The show was devoted to blaming Republicans for decades of job loss. The mantra was: The problem isn’t capitalism; it’s unpatriotic businessmen cutting deals with Communist Chinese. The entire political system isn’t responsible; it’s Republicans.

The solution is voting for Democrats, who tried to pass the “Bring the Jobs Home Act” that Senate Republicans killed last summer. What does this bill do? It gives a tax break to companies “relocating” jobs in the United States. Never mind that such tax breaks are ripe for abuse by corporations and there’s little evidence they create new jobs.

Turning Sensata into a partisan bludgeon will not help the workers. On Sensata’s website are two lists of plants: one from December 2008, and the other dated October 2012. The factories in Brazil, the Netherlands and Japan have vanished, but new ones have popped up in the Dominican Republic, Bulgaria and Shanghai. It’s a worldwide race to the bottom, and trying to plug the holes in the porous homeland with scraps of legislation is futile.

Take the Freeport plant. Randecker claims GM directed Sensata to shift the line manufacturing automotive sensors and controls to an experienced factory in Changzhou. Of course this is the same GM saved by the auto bailout that will likely win Obama re-election by putting Ohio in his column because of support from autoworkers whose jobs were saved. Then again, GM is doing what it has to in the kill-or-be-killed coliseum of the globalized car industry.

In the meantime lights will disappear by Nov. 7 and a few weeks later so will the last jobs. Labor organizers vow to nurture the storm brewing in the heartland. If it joins with others it could reshape the landscape, but if it gets sucked into Washington’s dead zone, then it will dissipate.

As for the workers, Randecker says, “There are a lot of people floating around here.” Freeport will be one step closer to a ghost town, haunted by one more specter of manufacturing past.

 

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Filed under Economy, Labor, Presidential Election 2012

Real Steel: Striking a Chord for the Lost American Dream

Wednesday, 10 October 2012 10:59

By Arun Gupta, Truthout | News Analysis

Caught between an unyielding corporation and crumbling solidarity, striking steelworkers in Ohio find history is both their ally and enemy as they ponder the uncertain future of organized labor.

Niles, Ohio – My childhood was made of steel.

In 1969 my family moved to Baltimore, where my father designed ships at Bethlehem Steel’s Sparrows Point Shipyard – what one historian notes “was once the largest steelworks in the world.”

It was a place of forbidding grandiosity: miles of clanking mills, blackened smokestacks and hellish furnaces, armies of grimy workers and supertankers in dry dock that blotted out the sky. I took pride in the millions of tons of steel forged annually, lived in a stable (if racist) working-class neighborhood near the plant and spent summers frolicking in the Olympic-size pool at the Sparrows Point Country Club.

Sparrows Point shut down its blast furnaces this past June, perhaps for the last time. A workforce that numbered 26,500 when we arrived in the United States had wasted away to 1,975 employees when its latest owner threw in the towel. The story is the same for much of the country. The golden era of industry is gone, but it weighs on workers who lament the passing of the American Dream, while anxiously confronting a future that seems to be one of perpetual decline.

The ripples of history surface in areas like Ohio’s Mahoning Valley, known as the “Ruhr Valley of America,” for the 28 mills that once lined the region. This year, 2012, is the 75th anniversary of the “Little Steel Strike” that turned the valley into a battlefield as steelmakers violently quashed unionization efforts. It’s also the 70th anniversary of the founding of the United Steelworkers of America (USW) and the 35th anniversary of “Black Monday,” when more than 5,000 workers lost their jobs after the demise of Youngstown Sheet & Tube’s Campbell Works in 1977.

It’s local lore that people would point to soot from steel mills dusting fresh snow and say, “That’s gold,” meaning that’s what paid the bills. That’s no more. The gigantic blast furnaces have long been demolished save for a few modern plants like V&M Star, which casts pipes for natural-gas fracking (and which was aided by $20 million in federal stimulus money). Steelmaking in the valley is otherwise limited to warehouse operations employing dozens of workers in jobs such as cutting metal parts.

One such facility is Phillips Manufacturing in the town of Niles, which straddles the Mahoning River. Workers there produce drywall and steel corner beads and studs used in building construction. Except Phillips is now using “replacement workers” to fill orders. On Sept. 13, 44 members of USW Local 4564-02 shut off their machines before noon. Instead of breaking for lunch, they walked out and struck over wage, benefits and seniority issues.

The dispute pits an emboldened corporation extracting ever-greater concessions from an ever shrinking-union. More significant, the history that shaped this area is in play as both sides try to turn it to their advantage. Organized labor often accepted racism in organizing, which enabled industrialists to divide workers along the color line.

In the Mahoning Valley, steel mill owners would employ blacks to cross the picket line. Today, Phillips is doing the same by bringing in African-American strikebreakers. As for the workers, who proclaim they are born and bred union, they have their own advantage: The city of Niles has dusted off a 1960s-era anti-scab law and invoked it against Phillips.

The stakes are higher for the steelworkers than the company. They must win this fight not only to retain decent-paying jobs with benefits, but to keep the local alive – one of the few institutions that can nurture a new generation of unionists.

Workers say since Phillips purchased the facility 14 years ago it has demanded concessions in every contract. David Hanshaw, a self-described “passionate Italian” and 30-year employee at the facility, is still angry about the givebacks Phillips extracted in 1998. “They took away our pensions, a weeks’ vacation and we had a pay freeze for five years.”

The current contract expired Aug. 9, and steelworkers walked out after management refused to budge on its demands despite 15 negotiating sessions. Local 4564-02 Vice President Tony Beltz says Phillips wants to hike workers’ payment for the family health care plan by 21 percent to nearly $3,900 a year. The company also wants workers to pay for short-term disability insurance and it wants to terminate seniority rights for those who are out for more than six months, a serious concern for a workforce mainly in their 50’s and 60’s.

Beltz explains during contract talks management tried to split the union by offering skilled workers more pay while cutting wages for production workers. He says that gambit didn’t work because “we’re united.”

When the union asked for a wage increase to lighten the burden, the company offered some production workers 3 cents an hour, or $62 annually. As for his situation, the 55-year-old Beltz says, “They want me to take a pay cut of 12 cents an hour, despite the fact I make only $15.71 an hour after 32 years at the plant. It’s insulting.”

The steelworkers understand that swirling around the wage and benefits dispute are the punishing currents of history. Hanshaw thunders that the strike “is about America. I want it back. We’re sinking into a moral abyss.”

Beltz sees a generational divide hampering the labor movement. He comments that younger strikers have not been on the picket line as much as the older crew. “Half of these kids don’t know what a union is. They bitch about dues. But now they get it.”

One factor in why younger workers may be less fired-up is their paltry wages. Beltz says new hires start at $9.90 an hour, about what a Starbucks barista earns. Hanshaw explains that because of low wages, “I’ve got two guys who ride bicycles to work. One guy can’t even come out to the picket line because he can’t afford gas.”

Paul Dierkes, who at age 56 has put in 27 years at the plant, says “We just want to do our job, get a paycheck and spend time with our family.”

But that’s not possible because strikers are caught between an unyielding company and weakening solidarity. Dierkes says on Oct. 8, during the fourth week of the strike, the company brought in four vans full of scabs. “These kids are in a rude awakening if they think things are going to get better. We told them, ‘Please don’t cross the picket line.’ But they don’t listen. If these kids keep crossing the picket line, they’re gonna eventually pay them nothing. You gotta keep the union alive and make sure people get paid fair.”

Some wonder if that’s the company’s goal – to smash the union. Mary Smith, a stout African-American who hails from Tennessee, has worked at the Niles plant for 32 years. Inside the warehouse the size of three football fields, she drives a tow motor, hauling doughnut-shaped coils of steel weighing up to 18,000 pounds, which are cut into building materials.

Smith says, “I think they’re trying to break the union. This strike is more negative than previous ones. They are playing hardball. They’re taking scabs right over us.” Smith says, “The scabs made sexually derogatory remarks to me, ‘Pull your pants down. I want to see your cookie.’ I tell them, if your mother were out here would you say the same thing?”

Smith is not one to back down, however. She arrives at Phillips at 4:30 a.m. every workday and stays up to 15 hours on the picket line. When asked about her devotion to the strike, Smith, a 62-year-old grandmother, says, “I’m fighting for my job and everyone’s job.”

Smith is referring to union jobs, not the category of “jobs” that has become an incantation. In the media, to speak of jobs is to invoke a mystical force that salves all social ills, but the ultimate source of which is unknown.

If there is a single reason why Obama is likely to be re-elected, it’s jobs. Specifically it’s because the bailout his administration enacted saved Ohio’s auto industry. The steel industry is too decimated to bail out, but the USW claims the auto rescue saved the jobs of 350,000 of its members – from glass workers who construct windshields to rubber workers who make car tires to chemical workers who manufacture paint brighteners.

It’s hard to deny that the bailout worked. By June 2009 the unemployment rate in the region that includes Niles had shot up to 13.5 percent. In August, it touched 7.9 percent, below the national average.

But the reason why Obama has not clinched the race is due to widespread anxiety among workers. The bailout saved thousands of union jobs in Ohio at the cost of forcing wages down, which impacts all workers. Average wages in Northeastern Ohio have dropped by nearly 9 percent since 2010. For many college graduates, a good job is working in a call center. One auto worker says for high-school graduates who can’t land a spot on the production line, Walmart is a good option.

While these jobs are non-unionized, workers say they are treated better because of the spillover effect of organized labor. Local 4564-02 President Bill Irons stopped by the picket line one day with a crock pot of barbeque pork. A mountain of a man, Irons’ bolt-like fingers are riven with cracks, as if the skin is straining to contain flesh and bone. Irons argues, “Unions keep companies honest. All the non-union guys benefit from safety improvements and higher wages that unions win.”

Yet his local is in critical condition. Today it has 135 members at six plants. Twenty years ago, says Irons, the local had 800 members. A generation before that, it probably numbered in the thousands.

For companies like Phillips, and corporate America in general, even a handful of unionized workers is too many. After I finished talking with Irons, strikers pointed out that Phillips’ president and CEO George Kubat was exiting the plant. I caught up with him at the gate and inquired about the status of negotiations.

Looking tense, Kubat said it was in the hands of a “federal negotiator.” I asked three times if he foresaw the situation being settled anytime soon. After deflecting my question twice – “Email me” – he shook his head no.(I emailed Kubat as he requested, but received no response to multiple inquiries.)

Phillips is a privately held company based in Omaha. Workers fear it will shift production to its non-union facility there. Phillips doesn’t publicize its vitals, but it seems to be thriving. Tony Beltz says, “There’s been an increase in business.” He says after four years with “zero overtime,” workers regularly logged 60-hour work-weeks this year. Further evidence of the company’s good health was Phillips’ announcement in June that it had acquired the assets of Steel Drum Industries in Tampa, allowing it to grow its business in the Southeast.

When I mentioned to workers that Kubat did not seem inclined to settle the strike, no one was surprised, given management’s intransigence during negotiations. Bob, a 67-year-old lathe operator, became distraught when talking about the strike. “It’s disheartening as hell to be treated like this. They’re telling the guys in there, ‘We’re going to starve them out.'”

Even though strike-breaking has been all but legalized, the steelworkers have home-field advantage. Union sentiment is still strong in Niles. Phillips workers mention their families have been union for generations and recall as children their fathers going out on strike. People driving by regularly honk and wave at the strikers. Two men in a pickup truck leaned on the horn and yelled, “Local 396, plumbers and pipefitters. Yeah, go boys!” The pro-union mood has also been boosted by a referendum last year that resoundingly repealed an Ohio law eliminating collective bargaining rights for public-sector workers.

The strikers’ ace in the hole is the anti-scab law. According to local reports, on Sept. 28 the Niles city prosecutor “filed a criminal complaint against Phillips Manufacturing for breaking a city ordinance that prohibits the hiring of professional strike-breakers in place of employees who are involved in a labor dispute.” Apparently the prosecutor did not know about the 1960s-era law. Niles City Councilman Dan Wilkerson, who has been a regular at the strike, drew the city’s attention to it. Violating the law carries a minimum fine of $500 and a jail term of up to six months.

If unionism is part of Niles’ legacy, then so is racism. And Phillips appears to be counting on it. At the end of one work day a van with half a dozen men, all of whom appeared to be African-American, pulled out of the lot as strikers yelled “scab” and “don’t come back.” Paul Dierkes says that the day four vanloads of strike-breakers came into Phillips, all but a couple looked African-American.

Thomas Sabatini, a professor of US History at Youngstown State University, says Niles used to be a “sundown town,” which was the norm in the North. Historian James Loewen writes that many sundown towns “formerly sported at their corporate limits signs that usually read, ‘Nigger, Don’t Let the Sun Go Down on You in ____.'”

The racial divide pains Mary Smith. The only African-American in the workforce, she says, “Phillips hasn’t hired any in the last seven or eight years. So to see them bring these African-Americans in there in the vans makes me angry.” Not that she has sympathy for the scabs. Smith says, “They can’t get jobs by doing the right thing, only by doing the wrong thing. I shouldn’t be saying this but they all look like thugs. They rub their fingers at us, ‘We’re taking your money.’ They’re cold-hearted in there, both the owners and the scabs.”

A hearing on the anti-scab law is set for Oct. 11. In the meantime workers spend their days sitting under canopy tents across the street from the main gate because an injunction has limited them to five pickets per entrance. They talk about the difficulty of staying out on strike because they live from one paycheck to the next. Smith says, “I’ve had to sacrifice a lot over the years, missing vacations with my children and grandchildren because I had to be at work.”

Smith says she was planning to retire next year, but is unsure now because the strike might drag on. For Bob, enjoying his golden years is not an option. “I can’t afford to retire because of my wife’s medical care,” he says. “Some of her arthritis prescriptions cost nearly $1,000 to refill.”

One day they will all be retired. The question is who will replace them: a new generation of strike-breakers, or a new generation of organized labor? One that understands the fight is not only for jobs with living wages, but to bridge the racial and economic divides affecting all workers.

Copyright, Truthout. May not be reprinted without permission.

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