Globalization undermines Workers' Rights in America by Stephen Lendman

[Joanne98]

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Part II of The War On Working Americans

This article was written to assess the state of working America in the run-up to Labor Day, 2007. Organized labor today is severely weakened following decades of government and business duplicity to crush it. Part I reviewed the labor movement's rise in the 19th century and subsequent decline post-WW II and especially in the last three decades. Hope arose for some change in the Democrat-led 100th Congress. A weak effort emerged, but Senate Republicans killed it.

Organized labor is struggling to remain relevant and claw its way back. The enormous obstacles it faces are reviewed below as well as the condition of working Americans today in a globalized world affecting their lives and welfare heading "south" in the "land of opportunity" offering pathetically little.

The Loss of High-Paying Jobs from Outsourcing Under Globalized Market-Based Rules

World trade isn't new, and the General Agreement on Tariffs and Trade (GATT) was its mid-20th century version after 23 founding nations signed it on October 30, 1947 in Geneva. Earlier in 1946, they drafted the International Trade Organization (ILO) that followed the creation of the IMF and International Bank for Reconstruction (now the World Bank) at Bretton Woods in 1944. Fifty-three nations then signed the GATT in Havana in March, 1948 as the founding international instrument governing world trade.

Subsequent rounds of negotiations followed through number eight launched in Punta del Este, Uruguay (the Uruguay Round) in 1986. It was signed in Marrakesh, Morocco in April, 1994 by most of the 123 participating countries as the updated version of the original 1947 GATT. It was then succeeded by the WTO January 1, 1995, one year to the day after NAFTA took effect as another worker rights legislative weapon of mass job destruction. DR-CAFTA followed next for the Central American countries signing on to it after El Salvador did first in March, 2006.

The WTO is well-seasoned with a corporate-friendly alphabet soup of Uruguay-negotiated agreements like the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), General Agreement on Trade in Services (GATS), Agreement on Agriculture (AoA), Agreement on Technical Barriers to Trade (TBT), and others all designed for one purpose. It's to override member states' national sovereignty so they're now governed under a uniform set of global market trading rules favoring capital.

They're designed for the Global North, giant corporations and the rich at the expense of Global South developing nations, ordinary people everywhere, concern for environmental standards as well as sanity and public safety. Along with the IMF, World Bank, and other international lending agencies, this entire structure is big capital's neoliberal scheme to commoditize everything, including people and life itself in the human genome, to strip-mine the planet for profit.

Globalized trade has a long history, but the notion of a globalized marketplace came into its own in the 1980s. It was hailed as a western, mainly US, prescription for economic growth and prosperity lifting all boats. In fact, only yachts benefitted by design so the privileged could gain at the expense of all others preyed on.

The UN's International Labour Organization's (ILO) commission on the social dimensions of globalization is comprised of representatives from labor, government and business. In 2004, it issued a damning appraisal of world trade rules harm and the subsequent distress caused by unfair practices. It ranges from how TRIPS prevents affordable generic life-saving drugs being sold in developing countries to the shifting tax burden from business and the rich to workers, and much more.

In the US and West, the damage comes from exporting jobs and offshoring manufacturing and service operations to low-wage countries. It began in the late 1950s when modest numbers of them went to Canada to take advantage of the cost savings there. The pace then quickened in the 1960s and 1970s with the exodus of production jobs in autos, shoes, clothing, cheap electronics, and toys as well as routine service work like credit card receipt processing, airline reservations and basic software code writing.

What started as simple assembly and service work early on, then took off in the 1980s. It spread up and down the value chain and now embraces almost any type good or service not needing a home-based location such as retail clerks, plumbers, and carpenters; top-secret defense research, design and selected types of manufacturing; and certain types of specialized activities companies so far have kept at home. What's moving abroad, however, is big business getting bigger with Gartner Research estimating outsourcing generated $298.5 billion in 2003 global revenues.

The toll adds up to a global race to the bottom in a country where services now account for 84% of the economy. The once bedrock manufacturing portion is just 10% and falling as more good jobs in it are lost in an unending drain. Since the start of 2000 alone, about one in six factory jobs, over three million in total, have been affected. The sector is less than a third of its size 40 years ago and one-fourth the peak it hit during WW II.

It's been devastating for the nation's 130 million working people. No longer are unions strong and workers well-paid with assured good benefits like full health insurance coverage and pensions. Today, all types of financial services comprise the largest economic sector. Much of it is in trillions of dollars of high stakes speculation annually producing wads of cash for elite insiders (when things go as planned) and nothing for the welfare of most others and the good of the country.

Worst of all is the poor and declining quality of most service sector jobs measured by wages, benefits, job security and overall working conditions. It's because fewer good ones exist, unions are weak, and workers are at the mercy of employers indifferent to their plight. People are forced to work longer and harder for less just to stay even. Jobs in this sector are mostly concentrated in unskilled or low-skill areas of retail, health care and temporary services of all kinds. They pay lots less than full-time jobs, and have few or no benefits and little prospect for future improvement. This all happened by design to crush worker rights and commoditize them like all other production inputs.

The Department of Labor now projects job categories with the greatest future expected growth are cashiers; waiters and waitresses; other restaurant-related workers; janitors and cleaning personnel; retail clerks; and child care workers - all low-skill areas. Harvard degrees aren't required. Neither are high school ones.

Most in-demand higher-skilled jobs are projected to be for nurses, post-secondary teachers and sales representatives. There are still plenty of high-tech jobs in areas like network systems and data analysis and software engineering applications and systems. But watch out. They're being lost as well to low-wage countries in an unending domestic job drain affecting all types of work able to be done anywhere. It shows why domestic job growth is stagnant (despite the hype it isn't), eligible workers are dropping out of the work force, and the decline is sure to continue unless legislation stops it. None is in sight or imagined.

The loss of good well-paying jobs means fewer high-end and a range of low-skilled ones are all that remain for vast numbers of young people whose future looks bleak. Two research studies among others highlight the problem. One by University of California staffers in 2004 estimated up to 14 million American jobs are at risk to outsourcing, and another by Gartner Research predicts as many as 30% of high-tech jobs may be lost to low-wage countries by 2015. In addition, writing in the March/April, 2006 issue of Foreign Affairs on what he calls a "third Industrial Revolution," former Federal Reserve vice-chairman Alan Blinder estimated 28 - 42 million American service sector jobs are vulnerable and could be lost to foreign labor.

In low-wage countries, they're done at far less cost to US employers in their company-owned or subcontracted out operations. Blinder added starkly "We have so far barely seen the tip of the offshoring iceberg, the eventual dimensions of which may be staggering." Veteran financial analyst and writer Bob Chapman calls this the "rape of our economy" with enormous, wrenching and destructive consequences to the lives of millions of working people pursuing an illusory American dream.

It affects the skilled and unskilled alike for all types of jobs at risk. Chapman cites India as an example noting once only low-skill and routine programming jobs went there. Now, he says, it's "software aeronautical engineers, banking, insurance, investment banking and drug research" along with many other high-end jobs where companies can hire skilled professionals at a fifth the cost of US and European ones. So why wouldn't they, and more are in a growing trend.

All types of financial jobs at all levels are also being eliminated with financial institutions moving sizeable chunks of investment banking, research, trading operations, and other professional jobs abroad for big cost savings. Deloitte Touche estimates the industry will outsource 20% of its cost base by 2010 with more to come in a continuing job drain for big cost savings abroad. The ones lost will be in financial services and most other sectors in a trend looking like it won't end until the US is as low a wage nation as those now taking our jobs.

An Unprecedented Fall in Workers' Standard of Living

Over the past 30 years, most people have seen an unprecedented fall in their standard of living...Continued>>>>
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