Posted by spaul on
04/08/2009

Yesterday, I joined more than 1000 people--mostly laid-off Steelworkers and their families--in a dusty, windswept lot where piles of subsidized, imported steel pipe from India destined for a major oil pipeline served as the backdrop.
Just a mile or two away stood the Granite City, Illinois works of United States Steel, a massive facility that is now shuttered because of the recession. When it is operating, the mill employs over 2000 workers and makes a quality, competitive product.
The familiar noises of a busy, industrial town have vanished in Granite City. The hum of machines is nowhere to be found. The downtown is now a ghost town. It would be easy for the laid-off workers and their families to simply stay at home, hang their heads, hope for the best, and complain about the hand they've been dealt.
But that's not what I saw. Instead, I saw hundreds and hundreds of workers and family members gathered together, unified in their call for jobs, justice, and a change in the way we do business. They were angry, but not xenophobic. Upset about unfair trade, but unafraid to compete. Not asking for a bailout, only an opportunity. Concerned about their own jobs, but downright scared about the future their children and their community might face.
Across the Mississippi River from Granite City lies the famous Gateway Arch in St. Louis. To me, the Arch is a symbol of hope, of a new day dawning, of a call to move forward. It's the gateway to what's possible in America, one of the simplest yet most meaningful structures in our nation. And it's made with a lot of steel: stainless, rebar, and carbon.
All of these things are visible from 15,000 feet in the air, in a plane on my way back to DC: the massive Granite City works, the piles and piles of green pipe, and the Gateway Arch. But you can't see humans from that altitude. Yet I'm afraid that's the view too many Americans have of our manufacturing crisis.
The pipe for TransCanada's oil pipeline project should have been made in America. But TransCanada chose the low road and selected the subsidized Indian pipe for the vast majority of the project. While Granite City doesn't make pipe, it is capable of making the hot-rolled steel that eventually becomes the pipe.
It might be too late to ditch this pipe. But it's not too late for TransCanada to make the right call on its new Keystone XL pipeline. And it's not too late for federal, state, and local officials to tell TransCanada that if the company wants to secure permits and right-of-way, they need to make the pipe in America.
Besides pipe, we make a lot of other things with steel. Everything from durable goods, automobiles and commercial jets to the tanks and warships that keep us safe. But we are losing the capacity to manufacture at an alarming rate. Our nation has lost 1.5 million manufacturing jobs since the recession began in December 2007. Forty thousand factories have closed over the past decade.
One lesson of the recession is that we need to make more things here. Developing new technology and consuming alone do not make for a stable economy, but that's been our economic strategy for the past decade. Manufacturing generates real wealth, family-supporting jobs, and exports. It does matter where things are made.
Granite City is ground zero in the crisis in manufacturing. To recover, it will take a trade policy that insists on reciprocity and fair play. India subsidizes its steel and should be held to account. Other countries that cheat should understand the consequences. It will take smarter domestic policies on health care, taxes, and energy to make manufacturing more competitive. Finally, it will take sizable investments in infrastructure, innovation, and education. This will only come about through the initiative and collective action of Americans across the political spectrum.
But it starts with a single act. Paul Revere's "midnight ride" sounded the alarm in the American Revolution. Ironically, he was also a famous metal manufacturer after the war. Perhaps Granite City's Paul Revere is Jeff Rains, a retired Steelworker. On his way to a meeting in February, Jeff saw the green pipe from India loaded on rail cars, took a couple of pictures, and alerted his local union. The rest is now history.
We owe it not just to Jeff Rains and the thousands of unemployed workers in Granite City, but also to our children and grandchildren to make things in America again. American manufacturing and American workers will do their part by producing quality, competitive products. We'll even remind people why it is so important to make things here. We need a government as willing to fight for manufacturing as it is willing to give out $700 billion to Wall Street. The difference is this: we don't need $700 billion, we just need a level playing field.
Mike Decaro is full of
Mike Decaro is full of it.
Mike Decaro's standard of living would not be anywhere what it is if working men in this country, faced with the same exploitative conditions that our Indian brothers and sister who manufactured that pipe, are faced with in the Indian steel mills.
As natural as it was and is for workers to organize unions in defense against employers who seek to keep large sections of the value produced by unpaid labor in their own pockets (Perhaps to invest it in those steel mills in India or wherever labor costs are low) it is also natural for manufacturers, and the international bankers that fund them, to flee trade unions and the higher wages that result, i.e., Mexico, India, etc.
It is also natural for the employers to chortle and rub their hands in glee when steel workers use their natural power to make demands on the employers two political parties, the Democrats and Republicans, who serve only the employers, even whilst the trade unions in these United States, unlike those in the rest of the developed world, let alone the "developing nations." have not yet organized their own political party, a labor party that runs its own candidates for office unlike the aborted labor party organized some years ago in Cleveland that aborted because it made a decision not to run candidates.
They chortle and rub their hands because they know who owns those politicians in Washington and it ain't us.
Nonetheless, while beginning the process of organizing a real labor party (A must) there are things that can be done to begin to put an end to layoffs and unemployment.
First, should be a demand for a sliding scale of hours to distribute available work to all who wish to be employed, that, without lowering the gross weekly pay for however many fewer hours such sliding scale would result in.
Second, should be the joining together with the Indian steelworkers producing that pipe rather than in practice setting the interests of U.S. workers against those of Indian, Mexican, etc.
That would mean uniting with the longshore unions not to unload steel pipe or any other products where workers that produce them are not paid rates and conditions equivalent to those of U.S. workers.
Third, and this is once again becoming a direct means of insuring that jobs in any industry are not lost and of which you had recently an excellent example right there in Indiana.
Rather than allow U.S. Steel to shut down those furnaces and rolling mills USWU leaders should have led an occupation of the plant keeping it operating and making the product available to whomever would pay what was needed to keep the plant running and producing.
As I remember it it takes millions of dollars to reline those furnaces with firebrick for a restart once they have been shut down.
At the same time the unions should be putting up their own candidates for political office and demanding that industries that can't afford to continue operating be nationalized under the control of the workers that operate them.
Did someone say "Socialism." Call it what you will. As we are seeing this government, the British as well, see no socialist obstacle in their paying huge sums to failing banks and at the same time essentially nationalizing them by demanding control.
Indeed, speaking of plant occupation, my memory of union history is that in the course of organizing their union the UAW resorted to occupation of auto plants.
Just as employers, under the strictures of making a profit, naturally run to the lowest wage regions in order to survive the competition, so must we U.S. workers take those measures that ensure our survival as human beings, even at the same time as using our vast union resources to help other workers build their own unions and increase their own benefits and conditions so as to ensure their be no setting, of worker against worker, us against them, in competition.
If that be Socialism so be it!
Jack Jersawitz
bigjackjj@yahoo.com
404-892-1238
What would you do if you
What would you do if you could get a product cheaper even if it was made outside the United States. This country is full of hypocrits and dont realize how much uneducated labor is over paid. A real simple solution to this problem is get rid of the unions which will bring employes wages down and make the USA more competitive with foreign markets. Americans are greedy plain and simple. I am an american and I served my country with honor yet it makes me sick how lazy and greedy the average american has become. Its not just these corporate CEO's but the average (joe the plumber) who wants something for nothing while these foreign nations work hard for less money and produce a better product. Down with the unions they are destroying our country.
Doug: Thanks for all the
Doug: Thanks for all the work you are doing in Granite City. One of the first lessons we all learn is setting limits and following through on rules. If our trade partners are subsidizing their products and dumping them into the U.S., they should be held accountable. Otherwise, why will they stop? Let's hope that shedding some light on this challenge will make a difference.
Gary: Thanks for pointing out the USW's work on this. TransCanada needs to know that using quality, American-made pipe will have many lasting benefits.
I am reminded often of the
I am reminded often of the comments made by Gordon Chang, a commisioner on the US-China Economic Review Commission as he presented his annual report to Congress last month. In regards to our trade "partners" not living up to their WTO obligayions, "American business and politicians are poisoning our political system by not enforcing WTO obligations, and not telling the truth about devalued currency and the truth about unfair trade." We must stop this and we can. Thanks Scott for your article in the Sunday April, 12 St Louis Post Dispatch as you mentioned "Granite City is ground zero for the crisis in manufacturing."
The United Steelworkers (USW)
The United Steelworkers (USW) want to get the Granite City steelworkers back to work, making plate for producing quality pipe in the Keystone XL pipeline. We've challenged the pending federal permit in the $5.4 billion TransCanada Keystone Pipeline that’s using under-standard thin-wall pipe for transport of crude oil from Alberta, Canada to Houston, Texas.
USW International Vice President Tom Conway transmitted a formal complaint to the U.S. Department of Transportation (DOT) on Apr. 6, urging the special permit requested by TransCanada be denied. He said the 2,000 mile pipeline is planned using a 36-inch thin-wall pipe at higher maximum operation pressure than is safely permitted under existing regulations.
“Our members work hard to produce quality steel and large diameter crude oil transmission pipe right here in the U.S. that meets all safety requirements,” Conway said. He adds that the USW-represented steel and pipe production workers “do not want to be denied the opportunity to provide that quality pipe based on a waiver of a fundamental safety regulation promulgated under the normal rulemaking procedures.”
The use of pipe imports from India called attention to the issue when 1,000 steelworkers on lay-off at the nearby US Steel Granite City mill joined an Apr. 7 demonstration that raised questions about foreign pipe being used for a separate TransCanada pipeline with a terminus to the Conoco-Phillips refinery in Wood River, Ill.
About 2,000 steelworkers at USS Granite City have been out-of-work since December, and several thousand pipe workers are also on long-term layoffs at pipe mills all across the country.
Let's fix this now.
Stephen: Thanks for your
Stephen: Thanks for your thoughtful comments. We are planning some big events leading up the Fourth of July, and we'll have some official announcements on those soon. I hope you will be able to join us. The TransCanada official to contact is Robert Jones, Vice President, TransCanada Keystone Pipeline LP, at the email address robert_jones@transcanada.com.
Rebecca: You are right. If consumers demand a quality product made in America, and the government enforces our trade laws, we will make a difference.
There is no doubt that the US
There is no doubt that the US government is no longer "For the people". If we continue down this road of cheap imports our own trade value will continue to decline. We will find ourselves dependent on foreign steel just as we have found ourselves dependent on foreign oil.
As I look at all the items in Walmart, K-Mart and other retail giants I look to see where it is manufactured. I refuse to buy a cute little lawn ornament from China when I can take that money and put it towards something made in the USA that I actually need.
The power is in the hands of the American people and until we wake-up and realize that ~ we are dooming our own economy every time we purchase the products of slave labor.
I am amazed that people (even
I am amazed that people (even Midwesterners!) are just laying down and taking the punishment. The entire power-elite structure (banks, the island of Manhattan, Washington DC, and any university with an MBA program) is stomping on the working class of what was once the United States of America.
They don't need more meetings or sob stories written on a web site. They need to be organized. They need to work TOGETHER. Why do union members in LA take $100 an hour jobs loading the trucks by the millions with 'Made in Asia' on it at the expense of union members in Detroit who are probably starting at $20 an hour? I think the name union comes from working in a unified manner.
Where is a real AFLCIO? Why don't you and your website find a way to connect all the remaining factory workers? I am just an engineer. I want to continue to be an engineer, but what good is designing stuff if my friends and neighbors don't build the stuff. I do care for them, but if you need an MBA-type motivation for why I care, the fact is I know that as the Asians build the stuff, they are figuring everything out and then I lose my job. They all want to do the design as much as the manufacturing, and they know real military power comes from this knowledge.
Why not just start publicizing the week leading up to July 4th as the Great American Manufacturing Week? Tell everyone connected with manufacturing to take that week off (workers, technicians, engineers, etc.). And schedule some mass demonstrations (Wash DC, St. Louis, Seattle come to mind). Have teach-ins, sit-ins. I am sure some Kia / Hyundai crushing would be a hit. And make the focus stuff like the following:
All imported products must come from factories that follow all EPA, OSHA, and NLRB regulations. And it has to be proven by US citizens performing the audits (or an internationally recognized registration group that does ISO 9001 or ISO 14000 audits - Lloyds of London, ASME, etc.). Make the power-elite come up with an explanation why this should not happen. This would true fair trade. It will be entertaining to watch them spew baloney as they struggle for an explanation.
Or, you can try to push the "Stop Wall Street Casino Tax Plan". That is the one where you tax capital gains at 5% if the assets are held for 3 years or more, and tax at 95% if the assets are held for 3 days or less, and use a simple linear relationship from the 5% to 95%, and absolutely positively no exemptions. Again, it will be very entertaining for the power-elite explain why we need day-traders and fast-buck schemes instead of factories.
Here is another idea, figure out the names and addresses of the people on the board and officers of the Canadian company buying the Indian stuff. I'd be glad to share my feelings with them.
Have a nice day.