USW

America’s Failed Mole-by-Mole Trade Policy

Leo Gerard — Tue, 07 Feb 2012 10:11:20 -0500

Last week several groups, including the United Steelworkers, petitioned the federal government to whack the latest trade mole – illegally traded auto parts from China.

With President Obama announcing creation of a new trade enforcement unit in his State of the Union Address, the feds probably will investigate. But even if they whack down the auto parts mole, experience has shown a new mole will pop up.

Mole-by-mole trade enforcement isn’t the solution to America’s massive trade deficit. Although conservative candidates revel in ridiculing Western Europe, America could learn crucial economic lessons from Germany, which doesn’t rely on Whack-a-Mole and maintains trade surpluses, including one with China in auto parts.

The Steelworkers – along with the United Auto Workers, the Alliance for American Manufacturing and Campaign for America’s Future – explained why the federal government must smack down the latest trade problem that has raised its ugly head.

China and several other countries promote their auto parts manufacturers by providing subsidies and engaging in additional practices banned by the World Trade Organization (WTO). As a result, the United States imports more auto parts than it produces, a situation that kills manufacturers and manufacturing jobs here. For example, over the past 11 years, as the U.S. auto parts trade deficit increased by 867 percent, the Unites States lost 45 percent of its auto parts jobs – a total of 419,000.

The reason the groups sought action against China specifically is that its exports of auto parts to the United States have increased faster in the past three years than any other country’s and China supports its auto parts industry in ways that violate its commitments to the WTO.

For example, China provided $27.5 billion in subsidies to its auto parts industry between 2001 and 2010. It’s fine with the WTO if countries subsidize industries that sell their products domestically. But it forbids subsidies for exported products because that distorts the free market, wrongly destroying jobs and industries in the countries that buy those artificially low priced goods.

Beijing also aggressively limited import of American-made auto parts. This is hardly startling. In December, China imposed steep tariffs on imported American-made sports utility vehicles and other large cars. And the WTO affirmed last week that China violated its trade commitments by restricting export of key raw materials. Earlier, the WTO supported President Obama’s imposition of tariffs on tires imported from China because Beijing had violated international trade rules.

China has prospered by breaking the rules. Electronics manufacturing is a good example. In a story about Apple’s experience, The New York Times described how America lost these jobs to China. Worker wages, while achingly low in China, were not the lure. And they were not the issue for Apple, a company that makes $400,000 in profit for every worker. It was a combination of other factors including the Asian supply chain and Chinese subsidies.

An example is the Chinese company that bid on supplying glass for the iPhone. When Apple executives visited, they found the company already constructing a wing where the iPhone glass would be cut. The company built it with subsidies from Beijing, subsidies that never would be provided by the United States to American companies, subsidies that are of questionable legality under WTO rules because they were for exported goods. Apple gave the contract to the Chinese firm, of course. Here’s how the Times described it:

“The Chinese government had agreed to underwrite costs for numerous industries, and those subsidies had trickled down to the glass-cutting factory. It had a warehouse filled with glass samples available to Apple, free of charge. The owners made engineers available at almost no cost. They had built on-site dormitories so employees would be available 24 hours a day.”

Beijing is a serial trade rule violator. The USW has won trade cases against China for violations involving paper, steel pipe, tires and other products. The Steelworkers filed for protection of the U.S. green energy sector against Chinese encroachment abetted by WTO violations and already has won negotiated settlement of several aspects of that case.

The USW and others that file trade cases often win. But this is Whack-a-Mole trade enforcement. A union or industry wins a case, whacks down that individual annoyance, but immediately another surfaces. America is losing, and far more is at stake than in an arcade game.

America can win. But it’s got to deal with trade differently. It needs a game changer, like Germany’s manufacturing policies.

Germany accounts for nearly 17 percent of America’s auto parts trade deficit. Germany sells more auto parts to China than it imports from China. German auto parts manufacturers accomplish this while paying higher wages and benefits than their American counterparts.

An analysis by the Economic Policy Institute notes that Germany actively enforces its industrial policy. This, EPI noted, stands in stark contrast to the United States, which doesn’t even have an industrial policy.

Germany encourages a sector of banks that is devoted to financing small and medium firms – the size that auto parts manufacturers are likely to be. In addition, Germany favors stakeholder capitalism, and corporate boards of directors there are populated by equal numbers of managers and workers. This changes the focus from profits benefitting only the 1 percent to company operation in the interest of the community, the country and the workers, as well as the executives and stockholders.

Republicans and Americans of the World War II generation might choke on the idea of learning something from Germany. But, frankly, this Western European country has prospered in manufacturing and trade with sophisticated state and corporate planning – not with the arcade-economics of Whack-a-Mole.

Retirees Occupy Century Aluminum

Leo Gerard — Tue, 31 Jan 2012 09:48:55 -0500

On Dec. 18, a dozen retirees, men and women in their 60s, 70s, even 80s, began occupying a median strip along Route 33 in front of the closed Century Aluminum smelter in Ravenswood, W.Va. In tents and under tarps, a small group stays overnight, despite hypertension, arthritis and other old age ailments. One has suffered a stroke.

These vulnerable people expose themselves to weather extremes although some have no health insurance at all. Century cancelled it. That’s why they’re occupying Century.

The retirees labored their entire lives for wages and pensions comparably lower than those of other aluminum workers. They did it believing they made those sacrifices in exchange for good, lifelong health coverage. Over the past two years, however, Century evicted them, about 540 retirees altogether, from the insurance plan.

The betrayal burns. Executives at Century, corporate 1 percenters, committed the same sort of treachery that is being condemned by Occupy Wall Street demonstrators representing the victimized 99 percent across the country. Thus the retirees adopted the grandchildren’s protest tactic of encampment.

Century shuttered the 50-year-old Ravenswood smelter in February of 2009, throwing 651 workers out of jobs. Century, headquartered in Monterey, Calif., didn’t go bankrupt though. It still operates aluminum plants in Kentucky, South Carolina and Iceland. And it didn’t immediately cancel promised insurance for retirees.

Nine months after the shutdown, it announced it would terminate as of June 1, 2010 health benefits for retirees eligible for Medicare. Then on Nov. 1, 2010, Century told its retirees who weren’t yet eligible for Medicare that it would stop paying for their coverage as of Jan. 1, 2011.

This revoking of earned benefits isn’t an isolated incident or a fluke. It is part of a pattern documented by Wall Street Journal investigative reporter Ellen E. Schultz in her new book “Retirement Heist.” The subtitle is, “How companies plunder and profit from the nest eggs of American workers.

She describes in gory detail how corporations raided worker pension accounts, siphoning off surpluses that would be needed later to prop up plans damaged by the Wall Street collapse. She provides detailed accounts of executives gouging the funds to pay for their own exorbitant retirement packages. She tells of corporate executives ending retiree health insurance and freezing pensions but deceptively calling the changes improvements, so that CEOs could pump up company profits with money that had been pledged to workers.

While breaking promises to workers and violating contracts, these CEO 1 percenters falsely portrayed themselves as beleaguered champions of workers, valiantly attempting to preserve underfunded pensions. Like Costa Concordia Captain Francesco Schettino saving himself while abandoning passengers on his sinking cruise ship, the captains of industry padded their own pockets with pension and health care funds intended for retirees, then deserted the workers. Schultz describes the CEO scams this way in the book:

“In reality, they’re the silent pirates who looted the ships and left them to sink, along with the retirees, as they sailed away safely in their lifeboats.”

Most of the Costa Concordia passengers survived, but more than a dozen drowned. In West Virginia, most of the retirees are still kicking. A leader among the Century occupiers, Karen Gorrell, explained:

“We may have one foot in the grave, but we are kicking like hell with the other.”

But some have succumbed. Gorrell, wife of a 33-year veteran aluminum worker, says Century has retiree blood on its hands.

She tells of two tragedies. There’s Bryce Earl Turner who Karen encountered after her first meeting with Century retirees in Ravenswood. He was scared and sick. Both alternatives he faced -- buying private insurance or paying for his leukemia treatments out of pocket -- were way beyond his means. Losing his insurance was a death sentence. The retirees worked desperately to get him more time.

With the help of West Virginia’s U.S. senators, Jay Rockefeller and Joe Manchin, and a provision in Obama’s health care reform law, the retirees managed to get coverage extended to Sept. 1, 2011. Bryce Earl Turner, 59, who worked 37 years at the aluminum plant, died the next day.

The other tragedy is Sam McKinney. He attended a meeting of the retirees on Feb. 14, 2011. He said he feared losing the insurance because his wife was ill. Karen recounts:

“He was very emotional because he had taken his wife to Charleston to try to get some assistance with her health care costs and had been turned down.”

He said, she recalled, that it was hard to believe that in America after a person expended his usefulness to industry, a corporation could coldly cast him aside as if his life had no value.

After the meeting, Sam McKinney took his wife to Outback Steakhouse in Parkersburg for Valentine’s Day. As they left, he collapsed and died in the parking lot. Karen is sure the stress killed him. Wrongful stress. Stress he’d not have experienced if Century was good for its word.

Karen says of Turner and McKinney:

“It was murder without a gun.”

Though Century failed to fulfill its obligation to pay for retiree health care, it handed its last CEO, Logan W. Kruger, $4.9 million in 2010. That’s twelve times more than Americans pay their president, the leader of the free world. Century gave Kruger another $6.2 million to leave last November. Still, he’s suing for $20 million on top of that. Century also is defending against a lawsuit filed for the retirees by the United Steelworkers (USW) union, which represented most of the Century workers.

The USW hopes, however, to resolve the dispute outside the courtroom, with the help of the retirees and West Virginia lawmakers. The elderly agitators managed to win the support of the state’s U.S. senators, its governor and its legislature. So last year when Century went begging to the state for $20 million it claimed it needed to re-open the Ravenswood smelter, the lawmakers sent Century away empty handed with a directive to settle with the retirees before seeking reconsideration.

Not long afterward, Century booted Kruger, and the new management team is negotiating with the USW and the retirees.

The protesters don’t have what they want yet, and they’re not leaving their tents until they do.

Century gave the retiree occupiers port-o-potties and installed concrete barriers to prevent cars careening on an icy Route 33 from plowing through the encampment.

Very nice gesture. But resuming payment for promised health insurance would be a whole lot better.

Emblematic of 1 Percenters, Cooper Tire Punk’d Workers

Leo Gerard — Tue, 24 Jan 2012 10:44:39 -0500

Four years ago, Cooper Tire told its workers they’d have to sacrifice to save the company. With a straight face, Cooper executives said it was essential for the corporation’s survival that workers take tens of millions in pay and benefit cuts.

The workers understood the link between their livelihoods long term and Cooper’s success. Dedicated and loyal, they accepted the cutbacks. Soon afterward, city and state officials granted Cooper millions in subsidies.

Management didn’t share in the workers’ and taxpayers’ pain, though. The top dogs rewarded themselves with millions in pay increases and a shiny new corporate jet.

Cooper punk'd the workers and taxpayers.

This isn’t an aberration. It’s a pattern. Corporate executives, the 1 percenters, slash workers’ wages, then give themselves big bonuses. CEOs tell mayors and governors their businesses are in such dire shape that they may close or move offshore. Government officials dutifully shovel truckloads of taxpayer cash into CEO hands, then the CEOs grant themselves more perks. The television show Punk’d, in which actor Ashton Kutcher humiliates famous people, took a five-year hiatus. The 1 percenters gave workers and taxpayers no such break. Punking the 99 percent for profit has only escalated.

At Cooper, 1,050 members of the United Steelworkers union in Findlay, Ohio agreed in 2008 to give the company $30 million in concessions when executives cried destitute at the negotiation table. The next year, after witnessing the same sad song and dance, Ohio officials began transferring $2.5 million from taxpayer pockets to corporate coffers.

Between 2008 and 2011, though, Cooper awarded its executives two pay hikes and double bonuses. The year after Cooper told workers they had to suffer for the company, Cooper CEO Roy Armes got a 50 percent pay increase. The next year, in the middle of the recession, his bump was 19 percent, giving him a package worth $4.7 million in 2010.

Cooper 1 percenters also bought themselves a corporate jet and, for $17 million, a Serbian tire company. Since January of 2009, Cooper posted $360 million in income before taxes.

The workers who took the cutbacks and taxpayers who subsidized the company got punk’d.

Then, this year, Cooper top dogs went back to the bargaining table with Steelworkers. Despite the big profits, they demanded more concessions. They planned to punk those workers again.

When workers in Findlay rejected a vague proposal from the company but offered to continue working under the terms of the old contract while talks continued, Cooper locked them out.

This would be disturbing if Cooper were a rogue company. But what’s more alarming is that it’s not. Profitable companies routinely blackmail workers and townspeople. They threaten to close or move to Mexico or China if workers won’t take cuts and if politicians won’t grant tax breaks. After the demands are met, the corporate executives shower themselves with cash.

Think of hugely-profitable Wal-Mart. The largest retailer in the world told its workers in October that it would substantially cut health care coverage for part-timers and significantly increase premiums full-timers must pay. By contrast, Wal-Mart’s CEO Mike Duke made sure he wouldn’t suffer. He had the board of directors change the way his pay is calculated when it looked like declines in sales at some stores would mean less compensation for him.

No matter his performance, the CEO is richly rewarded. No matter their performance, workers get cut. Punk’d.

This holds true on Wall Street too, where bank performance this year was lackluster. After declines in bank stock value, mid-level workers learned in recent weeks their bonuses would shrink. But not so for CEOs. Shares in Citigroup, for example, fell 44 percent, but its CEO, Vakram S. Pandit, was awarded a $16.7 million retention bonus as well as $3.7 million in stock while many Citigroup workers were told last week they would receive no bonus or a small one.

Mitt Romney’s Bain Capital is another example. It operates just like other vulture capital firms. They buy struggling companies, borrow against the assets, fire workers, cut the pay and benefits of the remaining ones, and take a huge chunk of that money and give it to vulture capital executives. Often the purchased companies, struggling under the excessive debt, go bankrupt, killing all the workers’ jobs.

The Wall Street Journal evaluated 77 deals Bain made while Romney was there. Of those companies, 22 percent closed or went bankrupt within eight years of the Bain investment. Even so, Bain executives made millions for themselves off those deals.

At the same time, Bain took handouts from taxpayers. Phil Mattera of Dirt Diggers Digest provides a list of tens of millions in taxpayer-financed subsidies Bain companies collected.

Workers and taxpayers got punk’d.

This isn’t a criticism of free enterprise or capitalism. It’s about civic duty and patriotism. A corporation has obligations to more than just its executives and shareholders – especially when the Supreme Court contends it’s a person. Every person is beholden to the community and country that provide nurture, protection and support. A corporation is accountable to its workers, its customers, its community, its country.

The executives who run American corporations have forgotten that. Or they reject it. These are the same CEOs who rail against regulation ensuring public safety and laws ensuring worker rights. They don’t want to be told they can’t pollute or let explosive methane collect in mines. And they don’t want to be told they can’t fire workers just for trying to form unions.

A little more regulation and a little less taxpayer subsidy might remind corporations of their obligations.

Workers and communities aren’t asking for the power to punk employers. They’re just asking not to be punk’d.

***

Tell Cooper to end the lockout!

Traditional Voting Fails; Alternative Works

Leo Gerard — Tue, 08 Nov 2011 08:16:45 -0500

Voting doesn’t work anymore. If it did, Americans would get what they want -- or at least some of it -- from Washington.

But they don’t.

Instead of the people’s priority, which is jobs, country club conservatives in Congress stubbornly fixate on deficits. Instead of ensuring millionaires and corporations pay their fair share, House Republicans passed a budget that would destroy Medicare and Medicaid.

Corporate and clandestine campaign contributions have undermined the power of traditional voting, the kind done at polls on election day. Rather than voters, politicians now serve donors -- billionaires and banksters -- who invest untold millions and demand returns in the form of self-serving policy.

This is demoralizing to those who cherish democracy and the sanctity of one person, one vote.

Hope, however, arrived with the debit card fee victory. The 99 percent forced Bank of America to back off its proposed fee. Average Americans accomplished this by voting differently, not at the ballot box but at the twitter account, the Occupy march and the teller window, where 1 million depositors went to move $4.5 billion from the big Wall Street banks to community banks and credit unions. They found another way to exercise their franchise and force the powerful to respond.

The 99 percent must exploit the method of this triumph to get what they need. Because politicians sure as hell aren’t giving them what they want.

The numbers don’t lie. Coin-operated conservatives in Congress have rejected President Obama’s jobs plan, parts of the jobs plan and Obama’s pitch to raise taxes on the rich to pay for it.

And yet, the electorate strongly supports both surtaxing millionaires and the elements of the jobs plan. In a CNN poll in October, 75 percent favored sending federal money to the states to hire teachers and first responders and 72 percent favored infrastructure investments.

A whopping 76 percent wanted millionaires to pay higher taxes.

In that same CNN poll, there’s another compelling statistic. Sixty-one percent said reducing unemployment was the most important issue. Reducing the deficit didn’t even come close at 35 percent.

The numbers aren’t flukes. Another survey, taken a week later by CBS found the same thing.

At a time when companies are hoarding $2 trillion in reserves, failing to create jobs and demanding tax cuts, the CBS poll provided a snapshot of public opinion on corporate responsibility. It found 67 percent opposed shrinking big business tax obligations.

That is a result of the public knowing intuitively what a report released last week proved: corporations aren’t paying their fair share. Citizens for Tax Justice conducted a comprehensive study that showed 280 of the nation’s largest publically-traded corporations paid only 18.5 percent of their profits in taxes over the past three years. That is little more than half the official rate of 35 percent, and it is lower than the rate paid by their competitors in other industrialized nations.

Thirty of the companies paid nothing. For three years.

Numerous polls over time found Americans, including Tea Partiers by a two-to-one margin, strongly oppose cutting Social Security, Medicaid and Medicare benefits. Yet, what is the Congressional super-committee talking about? Cutting Social Security, Medicaid and Medicare.

If only the public could get their elected representatives to listen. If only they could walk into those plush Congressional offices -- the way corporate lobbyists do -- grab those lawmakers and get them to understand the sentiment of all those polls, the feeling of the vast majority of the electorate: Tax the rich; don’t cut the social safety net; create jobs now; worry about the deficit when the economy improves.

Traditional balloting has failed to get country club conservatives to listen to the public. To the majority. To the people who a democratically-elected government is supposed to serve.

The Bank of America debit card fee reversal suggests, however, that the majority can win with non-traditional balloting. In this case, a big bank that had been bailed out by the public after it engaged in excessively-risky betting, a bank that gave its CEO a $9 million bonus after he lost billions, announced that it had “the right to make a profit” off the backs of poor people by charging them a new $5-a-month fee to use their own money with their debit cards.

Other Wall Street banks indicated they would do the same.

Fed up, depositors said they wouldn’t take it anymore. They began transferring their money out of the Wall Street banks, participating in the “Move Your Money” campaign that urged citizens to deposit their savings in community banks and credit unions. YouTube began featuring outrageous videos of Wall Street bank branches denying depositors access to their accounts when they tried to withdraw their money to move it.

The effort was tweeted and blogged. It was cheered by Occupy Wall Street protesters who marched to bank headquarters buildings in New York City carrying thousands of letters of complaint.

Wall Street banks began backing off their new fee plans. One by one they abandoned Bank of America. Finally, it too cancelled the fee, meanwhile refusing to disclose just how much businesses it lost.

Last Saturday was the big, official “move your money” day. Of course, the Wall Street banks won’t tell how many more customers they lost. But depositors, more than 78,000 of whom pledged to make the move, made their point.

They voted differently. They voted with their feet and their wallets. And they won. They cast ballots in the only way coin-operated politicians and big banks respond to.

Sacrilege: Wall Street Worship

Leo Gerard — Tue, 01 Nov 2011 10:05:26 -0400

Americans have been worshiping a bull. Too many citizens, and particularly politicians, prostrate themselves to Wall Street’s bronze idol.

They revere financial titans who pay themselves and their minions millions to manipulate money and gamble recklessly. Politicians gave tribute to the financiers with tax breaks and bailouts when the bankers’ bad bets threatened to bankrupt their institutions.

This false idolatry produced a nation gripped by massive unemployment, a nation in which destructive income inequality has risen beyond robber baron levels, a nation where greed has been perverted from sin to good, a nation where politicians genuflect to money changers, not majority citizens.

Salvation for the majority is not more failed trickle-down economics or more deregulation so that Wall Street can resume committing unfettered wagering. Redemption is political and economic systems devoted to serving the common good, not the affluent few.

These concepts -- that governments should protect majorities and that the international financial collapse is an opportunity to transform the system into one supporting a more fraternal and just human family -- are contained in a report released last week by the Pope’s Council for Justice and Peace. It says:

“The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence.”

Those values mandate economic and political systems that transcend “personal utility for the good of the community,” the report says, then adds:

“The primacy of the spiritual and of ethics needs to be restored and, with them, the primacy of politics, which is responsible for the common good – over the economy and finance.”

This is exactly what the 99 percenters -- the Occupy Wall Street activists of every faith -- have been saying. They want systems that work for the vast majority of citizens, not just the 1 percent at the top.

A day after the Pontifical Council reported that inequitable distribution of wealth has increased both between individuals and nations, the non-partisan Congressional Budget Office documented a massive spike in income inequality within the United States from 1979 to 2007.

The household income of the nation’s richest 1 percent grew 275 percent during that nearly 30-year period, according to the CBO report.

By contrast, the income of the middle class rose by one-seventh of that -- 40 percent. For the poor, the increase was one-fifteenth of that for the rich -- only 18 percent over 30 years.

The result is that the richest 20 percent of households got more money in those 30 years than the entire bottom 80 percent. That is redistribution of wealth – moving it from the poor and middle class to the richest.

The CBO study cites several factors contributing to the rising inequality, including federal tax policy. The CBO says tax policy fed inequity as the incomes of the wealthiest rose astronomically and their federal tax burden shrank.

This pattern is consistent internationally. The Organization for Economic Cooperation and Development determined that from the mid-1980s to the mid-2000s income inequality increased in three-quarters of the 30 developed countries studied.

If basic morality fails as a reason to reverse these trends, then the Pontifical Council suggested another. Such inequality leads to instability and violence:

“If no solutions are found to the various forms of injustice, the negative effects that will follow on the social, political and economic level will be destined to create a climate of growing hostility and even violence, and ultimately undermine the very foundations of democratic institutions, even the ones considered most solid.”

So far, the violence surrounding the 99 percenters in the “Occupy” movement has come from the government and police and not the other way around, thus the photos and videos of defenseless women pepper-sprayed by an officer in New York and a bleeding, critically-injured Iraq war veteran struck down by police in Oakland.

Historically, it wasn’t always that way. During another spike in the nation’s history of income inequality, in the first two decades of the 1900s, violence was turned on the rich. An anarchist shot robber baron Henry Clay Frick and bombings terrorized industrialists. As the socialist movement surged, Andrew Carnegie wrote that the gulf between rich and poor threatened the survival of capitalism.

Also ignoring morality, just consider that income inequality impedes economic development. An International Monetary Fund study found high levels of inequality retards economic recovery while relatively equal income distribution supports sustained growth. Numerous academic studies have reached the same conclusion – inequality diminishes economic expansion, for many reasons, including its tendency to provoke political and social unrest.

Yet conservative politicians continue to demand changes that would make matters worse. Candidates Herman Cain and Rick Perry, seeking the Republican nomination for president, have proffered flat tax plans that would compound the burden on the middle class and poor. On being informed that his would increase income inequality, Perry said, “I don’t care about that.”

When Democrats on the debt-reduction super committee suggested raising $1.3 trillion in tax revenues, including levies on the rich, a measure consistently supported by huge majorities of the American public, Republicans summarily rejected the proposal, calling it absurd.

The answer to the question, “What would Jesus do?” in this case is clear. The only gospel story in which Jesus engaged in violence is the cleansing of the temple of moneychangers. Morality demands an end to Wall Street worship and a new era in which both politics and financial markets work for the majority, for the common good.

Years of Discontent Trigger American Autumn

Leo Gerard — Fri, 07 Oct 2011 11:15:10 -0400

To convey the significance of the Occupy Wall Street movement, NBC News anchor Brian Williams this week quoted the 1960s Buffalo Springfield song, For What It’s Worth:

“There is something happening here. What it is ain't exactly clear.”

Maybe it’s unclear what the Occupy Wall Street movement ultimately will accomplish. But what’s happening – for the past three weeks in New York and now in hundreds of towns across North America – is a roiling, inspirational, grassroots expression of anger, disgust and revolution.

And, frankly, given what’s been going on in the United States since the bank bailout, it’s amazing that this uprising didn’t precede the Arab Spring. The powers-that-be, from the rich and influential to their coin-operated politicians and corporate-owned media, have mocked and belittled and ignored the protesters, the 99 percenters as they call themselves – everyone but the richest one percent. No matter what the critics say, these young people, with righteous outrage and new age communication, have launched the American Autumn.

This revolt could have started in the spring of 2009, immediately after the Bush administration pushed through Congress the Troubled Asset Relieve Program (TARP), the $700 billion in taxpayer money spent to prop up banks that had gambled and lost untold trillions. A Bloomberg News investigation later would show that the United States lent, spent or guaranteed as much as $12.8 trillion to save the banks. Despite that help, the Wall Street recklessness ruined the American economy, throwing tens of millions out of jobs and homes.

Poverty and hunger skyrocketed in the richest country in the world. As tax revenue fell, states, towns and school districts slashed essential public services and laid off teachers, librarians, firefighters and police officers.

Maybe it just took this long for the middle class to grasp all the horrible effects of the Wall Street gambling and to realize that a government held hostage by country club conservatives bent on cutting public services just made matters worse. Maybe young people looked at unrestrained war spending, Pell Grant slashing and voter disenfranchising and decided they were fed up and not going to take foreclosure of their futures anymore.

Whatever the spark, the American Autumn began three weeks ago in New York City’s Zuccotti Park, formerly Liberty Square. Late in September, some of the one percenters sipped Champaign on an upscale restaurant balcony as they looked down on the protesters in the streets below. This week, as protests spread, wealthy risk-takers at the Chicago Board of Trade put signs in the windows of their ritzy offices bragging, “We are the 1 percent.” They don’t get it.

Nor does Bank of America. Here’s a bank bailed out by taxpayers that just announced it would begin imposing a new fee – $5 a month, $60 a year – on debit card users. This bank also just announced that it would worsen the recession caused by bankster recklessness by laying off 30,000 workers.

This is a bank that engaged in the habitual, anti-capitalistic Wall Street practice of rewarding poor executive performance by giving its CEO Brian T. Moynihan a $9 million bonus immediately after the institution he runs lost $2.2 billion in 2010. Moynihan responded to criticism of the $5 fee by saying customers – and ultimately taxpayers -- must line his pockets and that of shareholders, regardless of how badly he runs the bank or how stupidly he gambles with its money. That’s because, he asserted, the bank has a “right to make a profit.” No matter what.

The media and country club conservatives belittled the protesters. Here’s what Herman Cain, a Tea Partier seeking the GOP nomination for president, said:

“Don’t blame Wall Street, don’t blame the big banks if you don’t have a job or you’re not rich. Blame yourself!”

He continued:

“It’s not a person’s fault because they succeeded. It’s a person’s fault if they failed. And so this is why I don’t understand these demonstrations and what it is that they’re looking for.”

He called the protesters “anti-capitalist,” although it was the banks that sought a socialist bailout from the government when they got themselves in trouble.

Cain didn’t blame banksters for unemployment, even though it was Wall Street gambling that took down the economy. He blames the teachers and police officers thrown out of work by local governments that are cash-strapped as a result of the recession -- caused by Wall Street recklessness.

Cain and the media keep saying they don’t understand what the protesters want. They just don’t get it.

A specific list of demands is unnecessary. What the 99 percenters want is obvious. They want the American dream restored. Good public education for everyone. Equity in opportunity. Shared sacrifice so that the rich pay a tax rate at least equal to that charged the middle class. An end to poverty and unemployment in the richest country in the world.

In the Buffalo Springfield song, For What It’s Worth, lyrics talk of 1960s youths criticized for their protests:

“Young people speaking their minds
Getting so much resistance from behind.”

This time protesters will get backing. The members of my union, the United Steelworkers, get it. Members of the unions of the AFL-CIO and Change to Win federations get it.

We’re here to support the young people of the American Autumn.

Buy American Jobs

Leo Gerard — Wed, 15 Jun 2011 23:41:26 -0400

Efforts by those who never want to hear someone say, “Bye-bye American manufacturing,” converged coincidentally to make June Buy American month.

First, at the forceful urging of U.S. Sen. Bernie Sanders of Vermont, the Smithsonian on June 8 opened an all-American-made gift shop in the National Museum of American History. Three days later, U.S. Sen. Sherrod Brown of Ohio introduced legislation requiring federal agencies to buy only 100 percent American-made flags.

Then, at the Netroots Nation 2011 conference in Minneapolis, Minn. this week, the AFL-CIO will serve American union-made beer, including Schell’s, brewed in Minnesota by members of my union, the United Steelworkers (USW). The Alliance for American Manufacturing will host at Netroots an American-made fashion show at which it will serve USW-member made Kellogg’s Nutri-Grain bars. And the BlueGreen Alliance is distributing to Netroots attendees mercury-free, USW-made, energy-efficient, non-curly cue Oshram Sylvania halogen light bulbs.

All these events occurring before mid-June are significant in an era of stubborn 9.1 percent unemployment, a time when 14 million unemployed Americans are searching for jobs. It’s significant because buying American-made products is buying American jobs. And buying American union-made products is buying good, middle class American jobs.

Eight million American manufacturing workers have lost their jobs over the past 30 years as multi-national corporations off-shored factories. But America still manufactures and the prices of American-manufactured goods, including those made by union workers, are competitive with foreign-made products.

Choosing an American-made product, or North American-made to include my home country of Canada where hundreds of thousands of USW members live and work, means supporting North American workers and the North American work ethic. It means buying products manufactured by willing adults in reasonable conditions, not by children laboring Dickensian hours in dangerous factories. It means reasonable assurance that the manufacturer abided by environmental laws prohibiting the poisoning of the air, ground and water by toxic substances like mercury and lead.

The Smithsonian experience provides the perfect example of how buying American-made products purchases American jobs.

Late last year, Sen. Sanders went to the history museum shop to buy Christmas gifts and discovered the presidential busts there were made in China. He was incensed that an American taxpayer-supported history museum was selling American history memorabilia not made in America. He complained.

While the Smithsonian reviewed the situation, CBS news determined exactly how policies like the museum’s injure the American economy. CBS reporters found a Connecticut woman who had to lay off three workers when the museum stopped selling her hand-crafted, American-made jewelry and replaced them with foreign-made substitutes. Before the change, Merrie Buchsbaum’s “Americana Collection” was among the museum shop’s best sellers. Apparently tourists did not find the prices for her America-made souvenirs to be excessive.

When the museum cut her off, Buchsbaum’s sales declined 20 percent, forcing her to furlough her entire staff. Three jobs is the difference between buying American and buying foreign for just one small supplier of one small gift shop.

The Smithsonian changed its policy, converting the gift shop to an all-American operation with 300 American-made souvenirs. Now it’s called the American History Price of Freedom gift shop.

That price of freedom, the Smithsonian said, is higher in some cases when the souvenir is American-made. For example, the custom, hand-crafted American-made mugs it now sells cost $20 instead of the average $12 price for a foreign-made mug in other museum shops. But U.S. Rep. Nick Rahall of West Virginia, who is preparing legislation tying the sale of American-made souvenirs to future federal funding for the museums, believes Americans will pay a buck or two more “to have their lapel American flag pin say ‘Made in the U.S.A.’”

American products don’t always cost more, however, even when they’re union-made. ABC news investigative reporters discovered that when they removed foreign-made goods from a Dallas family’s home earlier this year and replaced them with American-made products.

In addition, included in the price of North American-made products is the cost of protecting the environment and treating workers with dignity. It’s the price of morality. The United States and Canada, for example, forbid child labor and institutionalized the 40-hour work week. Both countries enforce environmental protection laws forbidding the devastating pollution countenanced by China and some third-world nations.

For example, the New York Times this week revealed that millions of Chinese children suffer from brain and nerve-damaging lead poisoning from unregulated, polluting factories, many of which produce batteries or smelt metal. The Times reported that the Chinese government in some cases conspired with the polluting companies to cover up the problem, denied testing to nearby sick residents and withheld tests results.

The lead poisoning raises the question of what China is doing about even-more-dangerous mercury, which is used by Chinese companies to make those twisty, energy-efficient light bulbs.

In America, Steelworkers are fabricating energy-efficient Sylvania halogen bulbs that look exactly like traditional light bulbs and contain absolutely no mercury. That’s American innovation, American compliance with moral environmental rules and American union labor creating a superior product.

Who knew, though? All anyone hears anymore is that American manufacturing is dead. American doesn’t make anything anymore. That is just not true. Here are some USW-made, terrific North American products:

Jacobson hats
Cutco Cutlery
Kellogg’s Pop-Tarts
Wendell August Forge pewter gifts
Breyers Ice Cream
Cascades paper towels and tissue
Viva and Bounty paper towels
Depend undergarments and Poise pads
Charmin and Angel Soft bath tissue
Puffs facial tissue
Georgia-Pacific Dixie Cups and plates
Cenveo envelopes
Leader Paper Products envelopes and business cards
All-Clad metal cookware
Regal Ware cookware
Speed Queen washers and dryers
Alberto Culver hair care products
Carrier home heating systems
Enderes forged hand tools
Channellock tools
Ideal Roofing steel shingles
Blanco Canada kitchen sinks
Nestle Purina cat litter
Distinctive Design furniture
Barrymore furniture
Star Bedding, Sealy, Spring Air, Springwall, King Koil and Simmons mattresses
Anchor Hocking glass tableware
General Storage containers
World Kitchen Pyrex glassware
A.O. Smith residential water tanks
Gentek Building Products including windows, doors and vinyl siding
American Standard bathroom fixtures
Reynolds Wrap aluminum foil
Fabri-Kal plastic ware
Speakman shower heads
3M O-cell-O sponges
Crown Metal Packaging for food and beverages
Federal White Cement
Shade-O-Matic and Eclipse venetian blinds, shutters and window covers
Valspar pigment for Valspar paints
Lavelle Industries rubber and plastic plumbing components
Harley-Davidson motorcycle parts and accessories
PFERD Milwaukee Brush metal brushes
Alto-Shaam, Inc. ovens and warmers
Shur-Line paint rollers
Goodyear, Bridgestone/Firestone, BFGoodrich, Titan and Yokohama tires.

The tires require caution. Many of those companies have foreign factories that export tires to North America. So the buyer must look for these codes to get American made tires: BE and BF for BFGoodrich, YE, 4D and E3 for Bridgestone/Firestone, UP and UT for Cooper, MD, MJ, MC, and MK for Goodyear and CC for Yokohama. These letters follow the letters DOT on each tire’s code.

In the case of the other products listed, some also operate foreign factories, so it’s always good to look for the Made in America label.

Buy American. Buy American jobs.

Fix the Hazards; Don’t Blame the Workers

Leo Gerard — Thu, 28 Apr 2011 09:39:45 -0400

The Clearwater Paper Corp. in Lewistown, Idaho chose the king cobra to symbolize its workplace safety program. A cobra. One of the deadliest snakes on the planet.

Every day on his way to and from work at Clearwater, John Bergen III drove past a billboard in the company parking lot sporting a picture of a king cobra and the explanation that it represented the company’s behavior-based safety program – Changing Our Behavior Reduces Accidents – COBRA.

Bergen, a devoted father, a gifted artist and a conscientious worker who urged everyone to observe safety rules, died last summer after inadvertently stepping through a gaping opening in the floor of the Clearwater Paper mill.

Behavior-based workplace safety programs like COBRA are attempts by corporations to shirk responsibility to eliminate hazards by blaming workers instead. When workers die, behavior-based programs disrespect the deceased by blaming them for their own deaths. These safety programs say to Bergen’s young son, “Your daddy’s dead because he wasn’t careful enough.”

These programs are cruel. They don’t work. And they must stop. This Workers Memorial Day, a day on which we honor those killed in the workplace and recommit ourselves to ending the slaughter, workers and their families across America demand an end to “blame the worker” safety programs.

Last year, among those killed on the job were 44 members of my union, the United Steelworkers (USW), which represents industrial workers including those in the paper sector. That is nearly one a week. Bergen was among them. His friends Jesse and Nigell Hutson wrote after his death:

“Such a tragic loss for everyone. He will be missed more than words can say. We love you, John.”

Over the past 18 years, the number of Steelworkers who died on the job has remained tragically constant, at about one every 10 to 12 days. So far this year, 11 Steelworkers died at work.

The stubborn consistency of the death toll demonstrates that the corporate-favored behavior-based safety programs achieve nothing.

The premise of behavior-based safety is that employees can work around hazards if they are just careful enough -- if they are ever vigilant. “You are looking at the person responsible for your safety,” these programs proclaim on stickers attached to workplace mirrors. One behavior-based safety consultant actually counseled that if there were an opening in the shop floor, the employer should leave it there because repairing it would give workers a false sense of security.

Al Chapanis, an expert on workplace safety, explained why behavior-based programs fail to keep workers safe. Chapanis was a professor of psychology and industrial engineering at Johns Hopkins University and a founder of ergonomics -- the branch of engineering that considers product and workplace design from the physical point of view of the actual user.

“Everyone, and that includes you and me, is at some time careless, complacent, overconfident and stubborn. At times each of us becomes distracted, inattentive, bored and fatigued. We occasionally take chances; we misunderstand; we misinterpret, and we misread. These are completely human characteristics. . . Because we are human and because all these traits are fundamental and built into each of us, the equipment, machines and systems that we construct for our use have to be made to accommodate us the way we are, and not vice versa.”

His message is simple: eliminate or control the workplace hazard. Cover the opening in the floor or at least surround it with a guard railing; don’t expect ever-vigilant workers to walk around it because humans aren’t ever-vigilant. Change the workplace because human nature won’t change.

In behavior based programs like Clearwater Paper’s COBRA, observers scrutinize workers’ performance. Their reports say: These workers acted like humans this many times today. They don’t say: There’s a giant gaping opening in the floor and someone might fall through it to their death!

At the Clearwater Paper Corp. plant in Lewistown, Idaho, the COBRA safety program failed to correct a gaping opening in the floor.

On June 30, late in the evening, 35-year-old John Bergen, a third generation paper worker and model employee, attempted to remove jammed paper from what was called the third auxiliary roll, a massive steel roller with paper wrapped around it. It stood above two other giant steel rolls of paper.

Bergen reached above his head with a knife and sliced into the paper. Beginning at one end, he walked forward, dragging the knife through the paper. Another worker, who was kneeling on a landing above the rolls, reached down and cut starting from the other end.

As Bergen scored the paper above his head, he stepped into a huge opening in the floor, two feet wide by four and a half feet long. He fell through to a conveyer belt below. There, unconscious, he was delivered to a 1,500-gallon hydrapulper tank, where he suffocated.

The opening in the floor accommodated a particular paper process called “thread up.” When that process was not occurring, a hatch was to be placed over the opening. But when the thread up process was done, vibrations caused the hatch to fall, covering the opening and thwarting the threading.

Someone tied the hatch open to keep production running. Afterward, the opening in the floor remained uncovered. In addition, no guard railing enclosed the opening to prevent workers from falling in. An inspection of the opening revealed post holders around it that could have secured a guard railing. But the railing was missing. The U.S. Occupational Safety and Health Administration (OSHA) cited and fined Clearwater for not covering the hole or providing a railing.

Bergen died because of design and maintenance flaws. Clearwater’s COBRA did not work because the philosophy behind blame-the-worker programs is fatally flawed.

Today, in Lewiston, Idaho, the two USW local unions that represent workers at the Clearwater plant, will conduct a special Workers Memorial Day ceremony honoring John Bergen III and other fallen workers.

Clearwater, and employers across America, must stop trying to cover their culpability with “blame the worker” programs and, instead, cover dangerous floor openings -- which means pursuing life-saving and worker-respecting workplace hazard elimination and control.

March to Stop the Freeloaders

Leo Gerard — Fri, 01 Apr 2011 10:15:22 -0400

The nation’s greedy corporations and insatiable wealthy are fattening themselves on workers. There’s no trickle down. It’s the opposite; the rich have been sucking the economic lifeblood from the middle class for decades.

When reckless Wall Street banksters get taxpayer-funded bailouts, billionaires get tax breaks and gigantic corporations like GE and Bank of America pay absolutely no federal income taxes, they’re getting for free the very public services that enable them to make massive profits in this country – the courts, the roads, the trade regulators, the patent enforcement.

The middle class doesn’t get those big time special deals and loopholes. Workers pay their taxes. As a result, it’s workers footing the bill for the government services that enrich the rich. Greedy corporations, their CEOs and the right-wing politicians they buy with tens of millions in campaign cash are freeloaders.

It’s time workers stood up to the freeloaders. Join Monday’s We Are One rallies. These demonstrations across the country by religious groups, social justice organizations and labor unions will illustrate that the middle class is mad as hell and not going to take trickster economics anymore.

It’s time for greedy corporations and the insatiable rich to pay their fair share. It’s time to stop cuts to the government programs most treasured by and vital to the middle class and the vulnerable in this country – education, public transportation, Social Security. It’s time to stop right-wing attempts to terminate democratic rights like collective bargaining and voting without harassment. It’s time for the middle class to stop paying for everything and for the insatiable rich and greedy corporations to start sharing the sacrifice required to recover from the economic crisis caused by reckless gambling by Wall Street bankster corporations.

March for your rights Monday. March for the middle class facing record rates of foreclosure, unemployment, child poverty, and loss of opportunity as country club conservatives cut off college loans and Head Start. March for the right of college students to register and vote in the towns where they study. March for the right of workers to band together, elect representatives and bargain with employers for better pay and working conditions. March for the right of the people to insist that corporations pay at least the same rate of taxes as workers do. March to end tax breaks for the wealthiest one percent who have now acquired more wealth than all the workers in the bottom 90 percent.

Greedy corporations, the insatiable wealthy and their purchased politicians have for three decades skewed public policy to enrich themselves while pushing down wages and benefits for the middle class.

From 1947 to 1975, a time of strong unionization in the workforce, real wages of average workers increased with productivity. The 75 percent rise in productivity and the nearly matching rise in wages gave the United States the largest, most vibrant middle class in the history of the world.

Since 1978, productivity grew 86 percent, but compensation for workers grew only 37 percent, and if the cost of benefits, mostly uncontrolled health insurance increases, is removed, the real average hourly wage did not rise for 35 years, according to Alan S. Blinder, professor of economics and public affairs at Princeton University and a former vice chairman of the Federal Reserve.

Here’s how it works: The nation’s largest corporation, General Electric, earns tens of billions in profits from the labor of its workers but refuses to share the benefits with them. GE is expected to demand that its 15,000 unionized U.S. workers accept benefit cuts. So they’ll pay more for their retirement and health care and have less money to live and to pay taxes.

Meanwhile, the share of national income captured by the richest one percent rose from 8 percent in 1975 to 23.5 percent in 2005.

Under Dwight D. Eisenhower, the president in the 1950s, the nation’s richest paid an effective tax rate of 70 percent after loopholes. Today, it’s 16 percent – significantly lower than the 25 percent forked over through payroll deductions by individual workers earning between $34,500 and $83,600 a year.

That resulted from deliberate policy changes. Beginning with Ronald Reagan, country club conservatives cut taxes for the wealthy, while at the same time ending routine minimum wage increases and undermining the bargaining rights of labor.

The changes were made by increasingly wealthy politicians increasingly influenced by lobbyists. For example, 60 percent of the freshmen in the U.S. Senate and 40 percent in the U.S. House are millionaires. By contrast, only 1 percent of Americans are worth more than $1 million.

Compounding that is corporate influence, which worsened last year when the U.S. Supreme Court enabled corporations to donate unlimited money in secret. The upshot is corporations like General Electric, spending millions to lobby and paying zero in federal income taxes. GE spent $200 million to lobby for loopholes in the federal income tax code over the past decade, made $26 billion in American profits over the past five years, and not only paid absolutely no federal income taxes, but got itself a $4.1 billion rebate from the IRS.

That is far from an anomaly. Two out of every three U.S. corporations paid no federal income taxes from 1998 through 2005, according to a report by the Government Accountability Office. And the situation hasn’t improved since then. U.S. Sen. Bernie Sanders has written repeatedly about tax avoidance by the likes of Bank of America and Goldman Sachs, Wall Street banks that former President George W. Bush handed hundreds of billions in bail out dollars.

Bank of America got a $1.9 billion tax refund from the IRS last year, even though it made $4.4 billion. Goldman paid only 1.1 percent in federal income taxes on its $2.3 billion in profits. New York Times reporter David Kocieniewski wrote in his story about GE that such tax dodging by corporations has resulted in a significant decline in federal revenue from corporations – from 30 percent in the 1950s to 6.6 percent in 2009.

Tax avoidance is a virtuous cycle for greedy corporations and the wealthy. They pay less in taxes, then have more money to lobby politicians to lower their taxes. In fact, it’s gotten so bad that lawmakers are hiring lobbyists right from their K Street firms to write legislation. And Congress’ new right wingers are increasing this trend. Since they took office in January, nearly half of the 150 former lobbyists working in top policy jobs in Congress were hired.

For workers, however, it’s a vicious cycle. They’re forced to pay the taxes shirked by greedy corporations and the insatiable wealthy. And they’re forced to suffer service cut backs.

Right now, right wingers are trying to cut $51.5 billion from the federal budget – demanding elimination of programs essential to the middle class and poor such as subsidies for home heating for the impoverished. But if the wealthy paid their share, say hedge fund manager John Paulson who earned $2.4 million an hour in 2010 – then those cuts would be unnecessary because the federal government would have an extra $69.5 billion in revenue.

Forty-three years ago on April 4 Martin Luther King was assassinated after standing up for the right of public sector workers in Memphis, Tenn. to negotiate for better lives.

In his last speech, Rev. King said God had allowed him to go to the mountaintop where he’d looked over and seen the Promised Land. “I may not get there with you,” he cautioned, “But I want you to know tonight, that we, as a people will get to the Promised Land.”

Greedy corporations and the wealthy have made it to the mountain top. And they’re shoving American workers down the hillside to ensure the Promised Land is reserved only for the richest.

The promise of America democracy is equality. Equal rights, equal treatment under the law, equal opportunity. Freeloading by greedy corporations and the insatiable wealthy is denying those promises to the vast majority of citizens. Americans must unify and march to wrest back those rights and secure the American Dream for all.

Take a first step. Join one of the 600 We Are One demonstrations on April 4.

False Fear: Cyborgs Instead of CEOs

Leo Gerard — Mon, 28 Mar 2011 11:43:09 -0400

The nightmare for far too many is Cyborgs. The public fears HAL, the 2001 Space Odyssey computer that killed astronauts rather than forfeit its objective.

So terrified of the sentient machine, citizens overlook the allegory. The soft-spoken, reasonable-sounding HAL behaves exactly like a greed-driven, multi-national corporation. The corporate mission is profit. With 29 workers massacred in a Massey mine explosion and 11 slain in the BP oil rig explosion in just one month last year, greedy corporations have shown they’re willing to kill rather than forfeit their profit objective.

In America, the UK and Europe, the entities that should be feared -- greedy corporations -- are pulling politicians’ strings. Reckless speculation by multi-national financial corporations took down the world economy, creating the worst recession since the Great Depression. Governments – in the UK, Europe and America – used worker tax dollars to bail out the banks. Now those big banks are granting outsized bonuses and pay packages to their executives while demanding that governments balance recession-ruined budgets with cuts to social services, education, pay and pensions for government workers and worker’s rights to collectively bargaining for better lives.

Workers, students and pensioners in the UK and Europe have protested these measures for a year, from general strikes in Greece to national strikes in France. In the U.K. students, in the largest numbers since the 1960s, protested education fee increases. Last weekend, the U.K.’s Trades Union Congress (TUC) organized the March for the Alternative in which a quarter million demonstrators walked for five hours in London to protest austerity imposed on workers while corporations get breaks.

The diamond-crusted rich on both sides of the Atlantic have determined that workers and the vulnerable will pay the consequences of the bankster-caused recession. And they’re exploiting the financial crisis to strip workers of collective bargaining rights, preventing them from ever regaining what they’ve lost.

That is what’s going on in Wisconsin -- and in a half dozen other American states where right-wing legislatures and governors are passing or pressing for legislation decimating workers’ rights to collectively bargain, even after workers accepted pay cuts to help balance budgets.

The disingenuousness of these right-wing governors in blaming public employees is clear. First of all, many of the state leaders granted huge tax breaks to corporations, lowering the states’ anticipated revenues, then demanded state workers bear the brunt of filling budget deficits.

Second, many of these governors didn’t stop at demanding public workers accept pay cuts. They also insisted on terminating workers’ rights to bargain for better pay, benefits and working conditions in the future. In addition, these right-wingers are meddling in the relationship between private sector unions and corporations. They want to forbid private employers from subtracting union dues from paychecks and remitting the money to the union. And they want to pass legislation intended to bankrupt unions and to prevent them from supporting progressive candidates who would treat workers fairly and protect their rights.

This is how it played out in Wisconsin: The governor, right-winger Scott Walker, gave corporations more than $100 million in tax cuts then decreed that public workers, such as teachers, nurses and librarians, take wage and benefit concessions. And Walker threatened to send out the National Guard, a state-run militia despite the name, to quell protests. This raised the specter of the May 4, 1970 massacre at Kent State when Ohio National Guardsmen called out by the governor gunned down unarmed students protesting the Vietnam War.

Contrary to Walker’s expectations, his threat energized opposition. Repeatedly, tens of thousands of workers, students, retirees, environmentalists, religious leaders and children poured into the streets and occupied the state capitol building in Madison, Wisconsin to protest the right-wingers’ plan.

Walker’s proposal passed in the state Assembly and needed a vote in the state Senate before it could get to his desk for final signature. To prevent a quorum needed to vote on the measure, all 14 Democratic senators left the state. They became known as the “Fab 14” as they remained holed up in hotels in Illinois for weeks, trying to negotiate a less draconian measure with the governor.

Although public opinion polls showed 60 percent of Wisconsin citizens opposed cutting collective bargaining rights, although workers already had accepted the pay reductions Gov. Walker had contended were vital to balance the budget, although protestors occupied the capitol building with a sit-in and sleep-in for weeks, the right wingers devised a scheme, in a secret meeting behind doors locked to the public, to vote without a quorum to deny government workers their collective bargaining rights.

In the midst of the dispute, Gov. Walker revealed his puppet masters – the Koch brothers, owners of the Georgia-Pacific paper company, with plants in the United States and the U.K. While contending he had no time to talk to progressive leaders or union officials about his union-busting legislation, Gov. Walker jumped on the phone for 20 minutes when told the caller was billionaire David Koch. The billionaire was Walker’s second largest campaign contributor; he provided $1 million to a fund to attack Walker’s opponent, and he bankrolls the right-wing’s right-wing, the Tea Party.

Events in some other countries show it doesn’t have to be this way. Brazil just passed a law giving unions a director’s seat on each board of a state-owned company. And in Australia, progressive labor legislation has enabled unions to increase membership by 20 percent in the past two years.
There are some signs of success in U.S. workers’ struggle to stop the corporate-backed right-wing campaigns. A Wisconsin judge has halted implementation of the union-busting measure because the way conservatives passed it appears illegal. And progressives are working to recall – or remove from office – eight right-wing Wisconsin senators who voted against worker rights. They’ve pledged to mount a recall campaign against Gov. Walker as soon as it’s legally possible.

In addition, labor activists and their supports have derailed proposed anti-union legislation in Indiana and Missouri.

That’s an indication of what coordinated coalitions of citizen protesters can do. That’s an indication that organized workers with their allies can take on global capital and win.

The difference between HAL and corporations is that HAL is fictional while greedy multi-national corporations are real threats. In the end, a human defeated HAL. In democracies, workers united with their allies can take on corporations and win as well.