Turning the Global Race to the Bottom Into a Race to the Top A Joint Webinar Presented by the Sierra Club and the Communications Workers of America March 2013
Outline I. Why we need to work together II. The Race to the Bottom III. The Crises We Face IV. Remember NAFTA? V. The TPP is NAFTA on Steroids VI. What You Can Do VII. The Race to the Top
Why we need to work together
The Race to the Bottom Strategy What Corporations and What They Said What Really Political Allies Did Would Happen Happened Cut Labor Reduce/Eliminate Unions Cut Labor Costs Increase Productivity Globalize Profits Investment Economic Crisis Cut Government Jobs Environmental Crisis Taxes on Wealthy + Corps Social Spending Wages Quality of Life Political Crisis Deregulate Trade Surplus Environment Trade Labor Politics Privatize & Cut Govt Jobs
The Crises We Face Economic Crisis Environmental Crisis Democracy Crisis
The Economic Crisis
Decline in Union Representation Union Members as % of Private Sector Workforce 35.7% 28.5% 17.1% 12.4% 6.6% 1920 1930 1940 1945 1950 1953 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012
We Produced More but were Paid Less Real Weekly Wages and Productivity $1,173 Weekly Wages IF Tied to Increases in Productivity $730 $632 $462 Real Average Weekly Earnings* 1947 1951 1955 1959 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 2011
Profits Rose After Tax Profits as a Share of National Income 6.7% 6.4% 6.4% 4% 3.7 3.3% 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011
The Rich Got Richer Share of Income Held by the Top 1% of U.S. Households 30% 25% 1928: 23.9% 2007: 23.5% 20% 15% 10% 1975: 8.9% 5% 0% 1913 1923 1933 1943 1953 1963 1973 1983 1993 2003
Where are the Jobs? Change in U.S. Multi-National Corporation Jobs 1999-2010 3,000,000-1,000,000 US Parents Foreign Affiliates
The Corporate Agenda and Trade Net Exports as a Percentage of GDP 1.0% 1.0% SURPLUS 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 DEFICIT -3.1% -3.6% -5.8%
The Environmental Crisis Climate crisis continues unabated Fossil fuel industry and politicians funded by the industry block action to address crisis Extreme weather Hurricanes, Drought Rising sea levels Wild Fires Endangered fisheries
The Democracy Crisis Biggest attack on voting rights since Jim Crow laws Corporations as people Money as free speech Elimination of protections for workers, environment, public interest
Trade Agreements are Part of this Strategy Remember NAFTA? Environmental Destruction Economic Destruction Bad for the US Bad for Mexico
Environmental Destruction Pollution and Toxics esp. in Maquilladora region near US border Water degradation Lack of enforcement Loss of biodiversity (i.e. corn)
Economic Destruction Bad for the US Loss of 700,000 US Jobs Downward pressure on US wages, benefits, labor rights Increased US Trade Deficit Bad for Mexico Economic destruction of Mexican peasantry & rural economy Increased migration to urban areas and to the US Slow Mexican economic growth
The TPP is Much Bigger than NAFTA
TPP is Not Just About Trade Agriculture Environment Rules of Origin Investment State owned Enterprises Food Safety
The TPP Is a Back Room Deal Being Negotiated in Secret Members of Congress, journalists, and civil society are excluded from seeing draft texts 600 corporate advisors have access to key texts and proposals Draft texts and proposals will not be released until four years after the talks have concluded or a deal is reached
Partial List of Official Advisors to USTR
TPP: Why so Secret?? We are troubled that important policy decisions are being made without the full input from Congress. If Congress and the public are not informed of the exact terms of the agreement until the conclusion process, then any opportunity for meaningful input is lost. -134 Members of the House of Representatives The majority of Congress is being kept in the dark as to the substance of the TPP negotiations, while representatives of U.S. corporations like Halliburton, Chevron, PHRMA, Comcast, and the Motion Picture Association of America are being consulted and made privy to details of the agreement. Senator Wyden Chair of Senate Subcommittee on Trade
The TPP Will Exacerbate our Crises Economic Crisis Democracy Crisis Environmental Crisis
The TPP Will Exacerbate our Economic Crisis Loss of More Jobs Call center and other service sector jobs Manufacturing jobs U.S federal government contracts to foreign firms Further Erosion of Standard of Living Wages, benefits and collective bargaining rights. Faster Race to the Bottom TPP includes Vietnam which is the low-cost, no-labor rights, low environmental protection alternative to China
Vietnam No Labor Rights Suppression of the right to form independent unions. The law [in Vietnam] does not allow workers to organize and join independent unions of their choice. (US State Department) Restrictions on Strikes. Vietnam s Labor Code allows partycontrolled unions to strike but imposes strict and cumbersome conditions that must first be met, which effectively nullify this right. (Human Rights Watch) Goods produced by Child Labor and Forced Labor. Vietnam is guilty of using child labor and forced labor in its garment sector. (US State Department)
Vietnam Low Wages Daily Minimum Wages (January 2013 in Dollars) $58.00 $8.70 $4.59 $2.23 United States Malaysia China Vietnam
Bye Buy America & Jobs Preferences for Buy America, prevailing wages, renewable or recycled and other domestic preferences for signatory countries could be challenged. Companies could not be barred because of their human rights and labor rights records. Constrain how national and state governments may use public funds in construction projects, purchases of goods and services, etc.
The TPP Will Exacerbate Our Democracy Crisis TPP would empower corporations to: Attack governments before private tribunals demanding our tax dollars to compensate loss of expected future profits from environmental, health, safety, land use, and zoning laws Call Center Bill could be subject to challenge Many laws, rules and regulations could be subject to challenge.
TPP Could Undermine Environmental Protection Our strategy V S
Our strategy Background: How we Got to Where We Are Today 1. MAP of LANDING PRICES
The TPP - More Deregulation and Environmental Degradation 10,947 Sierra Club Supporters Say: No Trade Agreement Should Pave the Way to More Fracking Dear Ambassador Kirk: I am deeply concerned that the Trans-Pacific Partnership free trade agreement could significantly expand exports of natural gas without any federal oversight. Exporting natural gas means an increase in hydraulic fracturing, or "fracking," that threatens the public health of communities and the environment where the fracking takes place. The pipelines needed to carry the gas to an export facility -- and the building of the export facilities themselves -- would create pollution and impact communities across the country. Please work with the White House and the Department of Energy to ensure that the DoE retains its authority to regulate exports of natural gas and to ensure that the TPP does not open the flood gates to more natural gas exports without protections for our communities and workers.
Our strategy
We Can Create Our Own Power We Have Won in the Past Successful battles Won Against Corporate Power-Grabs via Trade Agreements DERAILED: WTO Expansion: Seattle 99 today DERAILED: MAI (Multilateral Agreement on Investment) DERAILED: US - Malaysia, US SAf Customs Union, US-Thailand, US -UAE, Egypt FTAs, and more.
CWA and Sierra Club are Fighting Back
Other Americans Are Fighting Back Protests in Chicago, Los Angeles, San Francisco, Dallas, San Diego, Leesburg.
We Are Not Alone - The Global Fight Has Begun
Malaysians are Fighting Back
Japanese are Fighting Back
Australians are Fighting Back
The TPP Process in the U.S. Negotiations: Ongoing, governments want to conclude in Oct Request for Fast Track - possibly within next few months Congressional Vote on Fast Track Congressional Vote on Agreement
It s Up to All of Us to Spread the Word and Let the Secret Out Schedule a statewide webinar or town hall Distribute and Collect CWA/Sierra Post Cards In-District Meetings with Member of Congress during recess March 25-April 8 Letters to the Editor Go to our tool kits for all the information you need: http://www.sierraclub.org/trade/toolkit/ http://www.cwa-union.org/tpp
TPP Post Cards
What You Will Hand to the Member of Congress
We must not only resist the race to the bottom but start a race to the top Labor Standards strong enforceable core labor standards set by the International Labor Organization. Environmental Standards strong enforceable environmental standards. Prohibitions against eliminating, weakening or failing to enforce environmental protections Consumer Safety food, feed and all consumer products imported into the U.S. must meet our standards Services trade agreements cannot be used to require privatization or deregulation. Investment Countries maintain the right to regulate foreign investment according to their own priorities and to place restrictions on speculative capital. Procurement trade agreements must not undermine prevailing wage, environmental, renewable energy or human rights policies.
But to accomplish our goals we need to work together and build a Movement