michael h. bolton, directorimages.usw.org/d2/2016january.pdf · michael bolton, director 1244a...
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is published by the
United Steelworkers District 2 AFL-CIO·CLC
MICHAEL BOLTON, Director 1244A Midway Rd., Menasha, WI 54952
(920) 722-7630
Contributors to this issue include:
Lori Gutekunst, Jay McMurran, Tammy Duncan, Tonya DeVore, Ross Winklbauer, Jim Allen, Cindy Odden, Julie Baird, Emily Mueller, Rhandi Berth, Jessica Strachan,
Paul Krugman, Doug Palmer
Articles and photos are welcome and should be sent to:
Art Kroll, Editor, District 2 News 20600 Eureka Road, Suite 300, Taylor, MI 48180
[email protected] • 734-285-0367
JANUARY 25, 2016, is the deadline for submissions for the next issue.
The tariffs will increase prices on imported steel to bring them in line with those on a healthy domestic market. That announcement was news that gave edgy investors the confidence to push for a contract settlement.
And finally, the third triumph which helped bring the settlement of the USS contract and that was a favorable ruling for the Commerce Department regarding a trade case filed by the Steelworkers and several U.S. steel manufacturers. In our complaint the Union and companies claimed that steel firms from the countries named above were being subsidized by their host government, which was allowing those mills to sell products here far below U.S. production costs. As a result of the low foreign prices, U.S. companies were experiencing huge losses, which led to hundreds of Steelworkers being laid off.
As mentioned above, the tariffs and duties placed on the imported cold rolled flat steel products will bring prices in line with U.S. markets. That levels the playing field for U.S. workers and gives our members a fighting chance to compete in our domestic steel market.
I think it is good that news of those victories comes as we prepare to enter 2016, which happens to be an election year. It’s good because it points out just how important it is which political party controls the White House. If a Republican occupied the Oval Office, it is a pretty safe bet that the NLRB would not have ruled in the Union’s favor in the ATI lockout. Labor laws are something that Democratic and Republican Boards tend to interpret differently.
As far as the trade case decision, that would probably be a little iffier. After all, Republicans are a party of unfettered free trade with people who believe that the government shouldn’t be picking winners and losers. Instead issues such as the crisis American steel producers faced should be decided by the marketplace.
And, in this age of unlimited money flowing to both Democrats and Republicans, knowing the differences in the parties’ platforms is even more urgent. Why? Because the parties are now controlling who gets the money needed to win an election. If a representative tows the party
MICHAEL H. BOLTON, DIRECTOR
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 1
USW District 2 USW District 2 USW District 2 Council Steering CommitteeCouncil Steering CommitteeCouncil Steering Committee
The District 2 Council By-Laws established a District 2 Council Steering Committee comprised of a rank and file structure. It was set up to assist in the following:
Development of agenda for Council Conference.
● Planning of the District Council Conference Educational Conferences.
● District 2 strategic planning.
● Determining and assessing educational needs within the District.
Generating and leading activism and other purposes consistent with the mission and directives of District 2 and the USW.
The elected members of the Steering Committee are listed below by manufacturing sector. If you need to contact a Steering Committee Member, please do so by using the email provided.
NameNameName LU#LU#LU# SectorSectorSector Email AddressEmail AddressEmail Address
Hawley Warren 1299 Steel and Related
Dennis DeMeyer Jr. 2-15 Paper [email protected]
Kevin Bishop 1533 Amalgamated [email protected]
Jesse Edwards 2-232 Automotive Related
Kent Holsing 12075 Chemical &
Energy Related [email protected]
Mary Jane Holland 9184 Health Care [email protected]
Al Zimmerman 12934 Public [email protected]
Dave Page 1327 At Large [email protected]
Wes White 1327 At Large [email protected]
Jim Whitt 2-145 Allied Industrial [email protected]
DISTRICT 2 CONTACT IDISTRICT 2 CONTACT IDISTRICT 2 CONTACT INFORMATIONNFORMATIONNFORMATION
USW District 2 Office 1244A Midway Road Menasha, WI 54952 (920) 722-7630
Northern WI & MI Sub-District Office 1244A Midway Road Menasha, WI 54952 (920) 722-7630
Southern WI Sub-District Office 1126 South 70th Street Suite N509A West Allis, WI 53214 (414) 475-4560
Northern MI Sub-District Office 503 North Euclid Avenue Suite #10 - Euclid Plaza Bay City, MI 48706 (989) 667-0660
Southern MI Sub-District Office 20600 Eureka Road, Suite 300 Taylor, MI 48180 (734) 285-0367
A Message from Director Michael BoltonA Message from Director Michael BoltonA Message from Director Michael Bolton
It’s been a rough few years as the labor movement has been forced to contend with attacks from all sides. That’s why I am so pleased that the USW wrapped up 2015 by securing three very big victories for our members.
The first victory came in the form of a National Labor Relations Board (NLRB) complaint issued against Al legheny Technologies, Inc., for illegally locking out some 2,200 Steelworkers in six states. The lock-out began on August 15 when the company tried to impose its last, best and final offer. Union members rejected the concessionary package and were then locked out. The NLRB found that ITA management had engaged in bad faith bargaining and had been planning the lock-out since January of the same year. The case will now go before an administrative law judge. If the Union receives a favorable decision, workers at ATI would be eligible to be made whole of any lost wages and benefits retroactive to the beginning of the lock-out.
Our second win came when our Union announced that it had reached a tentative agreement with United States Steel (USS). The company and Union have been negotiating since June of last year. However, the U.S. steel industry was hit by a rash of illegally subsidized cheap foreign steel products. Because they were being sold at prices below U.S. production costs, domestic steel producers were teetering on the edge of failure. As a result, contract talks dragged out beyond their September expiration date and the parties were forced to continue working under an extension.
Good news for 18,000 Union members employed by the steel producer came on December 17 when the U.S. Commerce Department announced that as a result of a USW trade complaint, tariffs and duties would be placed on all imported flat rolled steel products originating from Brazil, China, India and Russia.
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 2
Did you know?Did you know?Did you know? A Message from Director Bolton — continued
This column is a monthly article where we encourage you to send us a few paragraphs answering the question “Why Am I Middle Class?” Because of space, one will be selected monthly and all others saved for future issues. Below, was written by Brian Felder, USW Local 1299.
If you or your local are doing good things in your community, we want to hear about them. Let us know and send stories and photos to [email protected]. We will also pass it along to the USW Communications Department for use in their publications!
USW District 2 Notices
The Union Plus Credit Card program.
With 3 card choices - designed to meet the needs of union members. All with competitive rates, U.S. based customer service and more. Plus, exclusive hardship grants for eligible cardholders*.
The Union Plus Credit Card Program is designed to meet the needs of hard-working union members and their families.
To apply by phone, call: 1-800-522-4000.
Starting with this January, 2016, issue of the we will publish a complete 2016 schedule of events. Instead of dropping the preceding months as we had in the past, we will list the entire year of scheduled calendar events. However, as with any advanced yearly schedule, there will be dates and times to be determined. We reserve the right to add to, change, modify or cancel when it becomes necessary.
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is published by the
United Steelworkers District 2 AFL-CIO·CLC
MICHAEL BOLTON, Director 1244A Midway Rd., Menasha, WI 54952
(920) 722-7630
“Why Am I Middle Class?”
line and sticks to its agenda, he or she can count on the funds to get reelected. But, if they break ranks and vote with the other side, the money could dry up or worse - that representative might just face some primary opposition during the next election cycle. Take a look at recent votes on key issues and you’ll see most follow party lines. The only exceptions are contentious issues for members in marginal districts. Michigan’s vote on Right to Work (RTW) is a perfect example. Because the GOP majorities in both the House and Senate were significant enough to pass Right to Work without every Republican voting for it, representatives in competitive districts with large amounts of Union voters, were given a pass to vote against RTW. Party leadership reasoned that it was better to pass the law by a slimmer majority than to force the entire caucus to vote for it and lose their majority status as a result. If you take an open-minded look at what is happening in Lansing, Madison, and Washington; you’ll see that bipartisanship is rare and members voting with the other side of the aisle is even more rare. There are no new chapters being written for a future edition of John F. Kennedy’s bestselling book, “Profiles in Courage”. In that book, the future president writes about historic fights that saw politicians risk their political careers by doing what they thought was right for the country and its people. When was the last time you heard of a politician doing that? I don’t mean to disparage anyone, but people who say, “I don’t vote the party, I vote the candidate” really should rethink their strategy. As long as political money continues to flow so freely, the power of the parties will continue to grow and politicians will keep clinging to the party lines. The fact is you are not voting for an individual – you are electing their party. That probably seems cynical to some and downright pessimistic to others, but that is our reality. If we don’t recognize it and adjust our thinking and strategies to match, we risk additional attacks on the labor movement and more bad legislation that will further erode the American working class.
The short answer is that I choose to be. Going further into it, I am “middle-class” because I am comfortable with my life. I don’t want to go to school and strive to be a CEO of a Fortune 500 Company. I’m happy to be able to provide for my family. I don’t want to work crazy hours both at work and home to stay ahead of the competition. I like where I am in life. Mostly, I’m middle class because there are more important things than money and status.
Election season is upon us – and now is the time to make sure the presidential candidates know about the importance of manufacturing job growth.
Ask the 2016 candidates what they would do as president to
grow manufacturing jobs.
I know I don’t have to tell you how important manufacturing is. More than 12 million Americans are directly employed in manufacturing, and many more are employed indirectly.
These good-paying manufacturing jobs are key to a healthy middle class. It’s no coincidence that the middle class is shrinking at the same time manufacturing is struggling.
Manufacturing certainly faced a tough 2015. There were only 30,000 new jobs created nationwide. We still only have gained back 40 percent of the jobs lost during the Great Recession.
It’s a far cry from where we hoped we would be by now. During the 2012 campaign, President Obama pledged to create 1 million new national manufacturing jobs in his second term – but only 370,000 jobs have been created.
Whoever is elected next will need to pick up the job-growing torch.
Please ask all the candidates to share their plan to create more manufacturing jobs.
Scott Paul
AmericanManufacturing.org
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 3
0.
2016 District 2 Calendar of Events2016 District 2 Calendar of Events JANUARY
15–18 Martin Luther King Jr. Civil & Human Rights Conference Washington Hilton, 1919 Connecticut Avenue NW • Washington, D.C.
22 WOS Quarterly Meeting Milwaukee Area Labor Council Building, 633 S. Hawley Road • Milwaukee, WI
26 WOS Quarterly Meeting Ronn Hall (USW Local 4950 Hall), 1206 Baldwin Avenue • Negaunee, MI
29 WOS Quarterly Meeting Kronenwetter Village Hall, 1582 Kronenwetter Drive • Kronenwetter, WI
FEBRUARY
3 WOS Quarterly Meeting USW Local 2-148 Hall, 1201 Gillingham Road • Neenah, WI
8 LM Review Session USW Local 2-21 Hall, 1201 Sheridan Road • Escanaba, MI
9 LM Review Session Kronenwetter Village Hall, 1582 Kronenwetter Drive • Kronenwetter, WI
10 LM Review Session Lucky Dog’z Labor Temple, 157 S. Green Bay Road • Neenah, WI
11 LM Review Session Milwaukee Labor Council Building, 633 S. Hawley Road • Milwaukee, WI
MARCH
1 LM Review Session USW Local 12075 Hall, 3510 James Savage Road • Midland, MI
1 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon) Location to be determined - Kalamazoo, MI
2 LM Review Session American Legion Hall, 10 Mason Street • Manistee, MI
2 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon)
USW Local 12075 Hall, 3510 James Savage Road • Midland, MI
3 LM Review Session Teamsters Local 7 Hall - 3330 Miller Road • Kalamazoo, MI
3 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon) USW Local 1299 Hall,11424 W. Jefferson Avenue • River Rouge, MI
4 LM Review Session USW District 2 Southern Michigan Sub-Office - 20600 Eureka Road, Suite 300 • Taylor, MI
7–10 USW International Women’s Conference Wyndham Grand Pittsburgh - 600 Commonwealth Place • Pittsburgh, PA
21 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon) Location to be determined - Negaunee, MI
22 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon) Fraternal Order of Eagles, 1104 S. Oak Avenue • Marshfield, WI
23 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon) Lucky Dog’z Labor Temple, 157 S. Green Bay Road • Neenah, WI
24 Presidents Meeting/Next Generation Meeting (9:00 a.m. – 12:00 noon) Milwaukee Area Labor Council, 633 S. Hawley Road • Milwaukee, WI
APRIL
4–7 USW Paper Sector Bargaining Conference Westin Convention Center and Hotel, 1000 Penn Avenue • Pittsburgh, PA
25–27 USW Rapid Response & Legislative Conference Omni Shoreham Hotel - 2500 Calvert Street • Washington DC
MAY
4–8 USW District 2 Council Conference Hyatt Regency,333 West Kilbourn Avenue • Milwaukee, WI
JUNE
5–8 Sub-District Local Union Leadership Training and NOVA training (Michigan) Dates and Locations to be determined
12–15 Sub-District Local Union Leadership Training and NOVA training (Wisconsin) Dates and Locations to be determined
20–24 USPA – 50 Years of Telling the USW Story Wyndham • Pittsburgh, PA
AUGUST
22–26 Organizing Training (Wisconsin) - TENTATIVE Location to be determined
SEPTEMBER
6 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - Midland, MI
7 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - River Rouge, MI
8 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - Kalamazoo, MI
20 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - Negaunee, MI
21 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - Marshfield, WI
22 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - Neenah, WI
23 Presidents Meeting (9:00 a.m. – 12:00 noon)
Next Generation Meeting (1:00 p.m. – 3:30 p.m.) Location to be determined - Milwaukee, WI
OCTOBER
31–Nov 4 Sub-District Local Union Leadership Training (Wisconsin) Dates and Locations to be determined
NOVEMBER
28–Dec 2 Sub-District Local Union Leadership Training (Michigan) Dates and Locations to be determined
DECEMBER
5–8 USW Civil Rights Conference Location to be determined - Birmingham, AL
This schedule is designed to assist in planning this year’s events. However, there is a possibility dates and/or locations This schedule is designed to assist in planning this year’s events. However, there is a possibility dates and/or locations
could change due to unforeseen circumstances. Please watch your mail and email for notices as each event draws near. could change due to unforeseen circumstances. Please watch your mail and email for notices as each event draws near. An upAn up--toto--date calendar can be found on our date calendar can be found on our websitewebsite and will be published monthly in our electronic newsletter.and will be published monthly in our electronic newsletter.
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 4
Besides doing the annual coat drive and taking over the donations to the VFW in Sun Prairie, the WOS have been doing a toy drive for the Kohler workers and a gift card/non-perishable item drive for the BouMatic workers in Wisconsin. They have been in a struggle to get a good contract.
Local 904L remembers the BouMatic workers walking the picket line with them in the 2006 strike and wanted to support them in any way they could. They took up collections at their workplace for these workers.
A special thank you from District 2 to the 904L Women of Steel. This local has not forgotten those who helped them through their rough times and strike and are always willing and ready to assist others. Again, Thank You 904L!!
USW Local 47 - Salvation Army's Adopt-A-Family Program
USW 904L WOS Show Their Support of BouMatic Workers in WI
Once again, USW Local 47 along with the Women of Steel committee, worked to make the lives of those less fortunate memorable this Christmas season by participating in the Salvation Army's Adopt-A-Family program! They adopted a large family with 2 adults, 2 girls ages 10 and 13 and two boys ages 3 and 4. That’s a lot of shopping. Their list was so full of "needs", the local wondered how they would be able to buy any of the "wants" on their lists. The local made a donation of $500.00 towards this cause. With it, they purchased snow pants, hats, mittens, scarves and boots for 5 family members and new sheets, pillows, tied fleece blankets and comforter sets for all 6 family members. They had multiple co-workers donate from $100.00 to $500.00 for toys, coloring books, crayons, Legos, Play Dough, puzzles, $50.00 for bowling, $50.00 for a movie and $100.00 for Woodman's Grocery Store cards and gift certificates. The kids will enjoy their new sleds to go along with their winter clothes, stuffed animals, books and new pajamas or outfits they received. Family game night will include Jenga, Sorry, Connect 4, Spirograph, craft supplies, and 2 “Etch a sketches” and puzzles. The parents also received, clothes, a blender, men’s grooming kit, omelet cooker, glassware, bathroom towels, rugs and shower curtain. The family also received 8 bundles of Charmin, Puffs, Bounty and Bounty napkins along with 50 hygiene items and many other cleaning supplies. To top it off, they added wrapping paper, ribbons, Scotch tape, gift tags and Christmas cards. They also donated a "Love" picture frame, a kids’ growth chart and a "Give Thanks" wall decal. Julie Baird from LU 2-47 stated, “thanks, you Local 2-47 Steelworkers. If there were more ‘thugs’ like us around, the world would be a better place!” Without a doubt, they made this a great Christmas for this family!
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 5
Wisconsin Loses 10,000 More Jobs After Passing Right To Work
Wisconsin Governor Scott Walker is in deep trouble as his state is losing jobs at record rates. Last year Walker promised that if the they passed Right To Work they would create tens of thousands of new jobs, once again proving that Right to Work is not a job creator.
Gov. Walker’s administration quietly acknowledged over the busy holiday season that Wisconsin surpassed 10,000 layoffs last year as a result of plant closings and economic challenges. The dismal news confirms that 2015 was Wisconsin’s worst year for job losses since Gov. Walker took office – far exceeding the 6,186 workers affected by mass layoffs and plant closings in 2014. The dramatic spike in layoffs have surprised many given the strong economic growth in neighboring Midwestern states.
“I’m concerned these mass layoffs aren’t setting off any alarm bells among Republican leaders in our state,” said Senate Democratic Leader Jennifer Shilling (D-La Crosse). “We are in the midst of an economic crisis. Wisconsin is hemorrhaging jobs at a rate we haven’t seen since the Great Recession and our middle class is shrinking faster than any other state in the nation. Thousands of families are struggling to find a job because the policies being pushed by Gov. Walker and legislative Republicans simply aren’t working.”
Instead of focusing on economic development, Gov. Walker and legislative Republicans have prioritized bills to dismantle the Government Accountability Board, limit investigations of political corruption and increase special interest campaign influence. Additionally, deep budget cuts to local schools, public infrastructure and economic development programs have resulted in widespread layoffs and contributed to Wisconsin’s poor economic climate.
“We need to get serious about turning things around and expanding economic opportunities in our state,” added Shilling. “From early childhood education and student loan debt relief to strengthening retirement security and investing in infrastructure, Senate Democrats continue to call for action to help hardworking Wisconsin families. Rather than addressing these challenges, Republican leaders have allowed Gov. Walker’s presidential campaign and special interest groups to drive their political agenda. With more layoffs on the horizon, I hope that we can recognize the gravity of this situation and begin to turn things around in Wisconsin.”
Educating Politicians on Area Unions in Milwaukee, WI
On January 6th, the MALC put on a Candidates’ Education Forum for incumbents and people who are running for office in Milwaukee and Milwaukee County. The goal of the program was to educate the politicians on the area Unions. There were two different sessions. The first was attended by over 40 people and the second by over 20. Some of the incumbents were County Executive Chris Abele, Alderman Bauman, Zielinski, State Assemblyman Zepnick, and City Treasurer Coggs to name a few. Ross Winklbauer, Sub-District Director from the United Steelworkers, talked about how the USW works with area companies to try and address their safety concerns by doing hazardous mapping and other programs that can be put on.
He also spoke about the partnership the USW has with WRTP/Big step and explained how the goal of both is to have family-supporting jobs in the Milwaukee area. The President of the Milwaukee Building Trades Union, Dan Bukiewicz, who is also an Oak Creek Alderman, talked about prevailing wages for the trade Unions when working at construction sites. Also speaking was Jason Sidener, AFSCME Council 32, who spoke on the effects of Act 10 on the public sector employees and the problem Milwaukee is having in retaining workers because of it.
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 6
At 90 years old, Ted Lindsay, former Detroit Red Wings player and hockey Hall of Fame member, has been all around the country being recognized as a sports icon and a philanthropist. But, for the hockey legend known on the ice as “Terrible Ted” for his aggressive style, there’s just no place like Downriver.
“Downriver has the greatest hockey fans in the world,” Lindsay told a group of Steelworkers, family members and fans at the USW 1299 Franklin Delano Roosevelt Hall in River Rouge on January15.
United Steelworkers Local 1299 hosted Lindsay, honoring him as a pivotal player in the formation of the National Hockey League Players’ Association. The event included a screening of a 1995 film inspired by Lindsay, “Net Worth”, followed by an intimate meet and greet.
The crowd of fewer than 100 cheered for Lindsay’s struggle to organize and presented him with an honorary hard hat with his Red Wings Jersey number. “I want you to understand that that’s what got me traded to Chicago,” Lindsay said, joking about his move from the Detroit Red Wings to the Chicago Black Hawks after helping to organize players in the late 1950s.
Among the attendees was the Miller family: three generations of hockey fans from Ecorse. Michael Miller Sr., 62, brought a childhood photo of him and his father with Lindsay at a local event in 1965. Miller’s father helped begin the first Ecorse Hockey Association.
Along with Miller were his son, Michael Miller Jr., 42, now a Troy resident; and his two sons, Michael Miller III, 12, and Cameron Miller, 11 — each decked out in NHL gear, eager to share stories on the ice and have their own equipment signed by the legend.
Lew Lapaugh, Lindsay’s son-in-law and president of the Ted Lindsay Foundation, said the evening in River Rouge was a rare, intimate affair for Lindsay, who, since 2001, has raised millions of dollars to fund research in the mission to cure autism spectrum disorder. “This is the first time he’s done something like this,” Lapaugh said. “It’s great because he wants to meet the people who want to help.”
In 2014, one in 68 children in the U.S. was diagnosed with autism, according to the national Centers for Disease Control and Prevention. The disorders occur almost five times more frequently in boys than girls and the rate of diagnosed children is 30 percent higher than previous estimates ̶ Nearly $4,000 was raised at the charity event, according to organizer Steve Stapleton.
Congratulations Cassandra Patterson of USW Local 3740
Hockey Legend Ted Lindsay Spends Evening with LU 1299 Steelworkers - Reprinted by Jessica Strachan, News Herald
Cassandra Patterson of USW Local 3740 shows just what people are capable of accomplishing when they possess a strong work ethic, a positive attitude, and a commitment to life-long learning. An employee at Renaissance Manufacturing Group (RMG) in Waukesha, Cassandra recently completed the 18-month Industrial Manufacturing Technician (IMT) Registered Apprenticeship as part of the company’s first graduating class. And as a mother of nine, Cassandra managed to balance her full-time job with her responsibilities as a parent – all while working to advance her career as an IMT Apprentice.
The IMT Apprenticeship received formal recognition from the U.S. Department of Labor Office of Apprenticeship in November 2014. WRTP/BIG STEP worked closely with leadership from business and labor organizations, including RMG and United Steelworkers (USW), to implement the innovative apprenticeship program. A proud member of USW, Cassandra found
out about the apprenticeship opportunity from her local union president who encouraged her to participate. Since starting this Registered Apprenticeship in 2014, Cassandra continued working full-time at RMG – formerly Pure Power – where she has been an employee for more than ten years. In addition, Cassandra received specialized training at RMG from WRTP/BIG STEP and Waukesha County Technical College instructors. To Cassandra, the benefits of the IMT Apprenticeship are far greater than the extra effort required to complete it. “Just the learning keeps me motivated because I love to learn new things. Going through the training opportunities that the IMT Apprenticeship entails motivates me to learn even more,” she says.
Cassandra looks forward to applying the skills she’s learned to different departments at RMG and rising in the company. “I do like the company. I’ve been here for quite a few years, so I’m in it for the long haul.” When asked how the IMT Apprenticeship is helping her, Cassandra points to the practical skills she’s learned. “It’s helping me because I’m a team leader on the floor. It’s important for me to have the knowledge of how the machines run so that if something goes wrong, I can fix it or work with the maintenance department to help them fix it.”
Others may think it’s impossible to balance a full-time job with the responsibilities of raising nine children. When Cassandra talks about what she’s accomplished as an IMT Apprentice, her bright, positive attitude makes it sound easy. Cassandra is not only an inspiration to her own children, she inspires everyone she meets and works with to reconsider what they think is impossible and to believe in themselves.
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 7
So, will China’s problems cause a global crisis? The good news is that the numbers, as I read them, don’t seem big enough. The bad news is that I could be wrong, because global contagion often seems to end up being worse than hard numbers say it should. And the worse news is that if China does deliver a bad shock to the rest of the world, we are remarkably unready to deal with the consequences.
For those just starting to pay attention: It has been obvious for a while that China’s economy is in big trouble. How big is hard to say, because nobody believes official Chinese statistics.
The basic problem is that China’s economic model, which involves very high saving and very low consumption, was only sustainable as long as the country could grow extremely fast, justifying high investment. This in turn was possible when China had vast reserves of underemployed rural labor. But that’s no longer true, and China now faces the tricky task of transitioning to much lower growth without stumbling into recession.
A reasonable strategy would have been to buy time with credit expansion and infrastructure spending while reforming the economy in ways that put more purchasing power into families’ hands. Unfortunately, China pursued only the first half of that strategy, buying time and then squandering it. The result has been rapidly rising debt, much of it owed to poorly regulated “shadow banks,” and a threat of financial meltdown.
So the Chinese situation looks fairly grim — and new numbers have reinforced fears of a hard landing, leading not just to a plunge in Chinese stocks but to sharp declines in stock prices worldwide.
O.K., so far so bad. And some smart people think that the global implications are really scary; George Soros is comparing it to 2008.
As I suggested above, however, I have a hard time making the numbers for that kind of catastrophe work. Yes, China is a big economy, accounting in particular for about a quarter of world manufacturing, so what happens there has implications for all of us. And China buys more than $2 trillion worth of goods and services from the rest of the world each year. But it’s a big world, with a total gross domestic product excluding China of more than $60 trillion. Even a drastic fall in Chinese imports would be only a modest hit to world spending.
What about financial linkages? One reason America’s subprime crisis turned global in 2008 was that foreigners in general, and European banks in particular, turned out to be badly exposed to losses on U.S. securities. But China has capital controls — that is, it isn’t very open to foreign investors — so there’s very little direct spillover from plunging stocks or even domestic debt defaults.
All of this says that while China itself is in big trouble, the consequences for the rest of us should be manageable. But I have to admit that I’m not as relaxed about this as the above analysis says I should be. If you like, I lack the courage of my complacency. Why?
Part of the answer is that business cycles across nations often seem to be more synchronized than they “should” be. For example, Europe and the United States export to each other only a small fraction of what they produce, yet they often have recessions and recoveries at the same time. Financial linkages may be part of the story, but one also suspects that there is psychological contagion: Good or bad news in one major economy affects animal spirits in others.
So I worry that China may export its woes in ways back-of-the-envelope calculations miss, that the Middle Kingdom’s troubles will one way or another have the effect of depressing investment spending in America and Europe as well as in other emerging markets. And if my worries come true, we are woefully unready to deal with the shock.
After all, who would respond to a China shock, and how? Monetary policy would probably be of little help. With interest rates still close to zero and inflation still below target, the Fed would have limited ability to fight an economic downdraft in any case, and it has probably reduced its effectiveness further by signaling its eagerness to raise rates at the first excuse. Meanwhile, the European Central Bank is already pushing to the limits of its political mandate in its own so far unsuccessful effort to raise inflation.
And while fiscal policy — essentially, spending more to offset the effects of China spending less — would surely work, how many people believe that Republicans would be receptive to a new Obama stimulus plan, or that German politicians would look kindly on a proposal for bigger deficits in Europe?
Now, my best guess is still that things won’t be that bad — nasty in China, but just a bit of turbulence elsewhere. And I really, really hope that guess is right, because we don’t seem to have a plan B anywhere in sight.
When China Stumbles - By Paul Krugman, NY TIMES – Jan. 08, 2016
JANUARY, 2016 • VOLUME 6, ISSUE 1, PAGE 8
TPP's Multi-Billion Dollar Price Tag - By Doug Palmer , POLITICO-Pro – Jan. 20, 2016
The approval of the Trans-Pacific Partnership agreement could cost the United States more than $15 billion in lost tariff revenue over the first 10 years of the pact, experts say, potentially leading to new fees on businesses or spending cuts to cover the tab.
About two-thirds of the 6,000-plus pages in the TPP agreement consist of tariff elimination schedules, John Murphy, a senior vice president at the U.S. Chamber of Commerce, noted last week at an International Trade Commission hearing on the economic impact of the pact.
“This translates into about 18,000 tax cuts on U.S. goods sold abroad and 6,000 tax cuts on goods imported into United States from other TPP nations,” Murphy said.
Data from the International Trade Commission shows the United States collects more than $5 billion a year on imports from the 11 other TPP countries. That's a tiny sliver of overall U.S. government revenue, which is expected to top $3.4 trillion this year. But it comes at time when the Congressional Budget Office is already forecasting the U.S. budget deficit will rise from $439 billion last fiscal year to $544 billion in this one.
Lost tariff revenue over the next decade would exceed $50 billion if all of the duties were immediately eliminated under the TPP pact.
However, many of tariffs are collected on autos and auto parts from Japan and clothing from Vietnam, which are subject to long phase-out periods under the pact. That is expected to significantly reduce the cost of implementation in the first decade.
If Congress follows “pay as you go” procedures for implementing the deal, it could raise taxes on businesses expected to benefit from tariff reductions under the pact. Or lawmakers could look at spending cuts to make up the lost revenue.
"After scooping up lots of trade-related offsets to pay for highways and the budget deal there isn't much left and certainly not $15-plus billion," said Warren Payne, a former House Ways and Means Committee policy director now at the law firm Mayer Brown.
That could put businesses that support TPP "in an awkward position if all of sudden they are presented with tax measures that impact them to pay for it," Payne told POLITICO.
Congress raised certain taxes and customs fees in 2011 to pay for the $7 billion cost of implementing the U.S.-South Korea free-trade agreement over the first 10 years.
Even if the TPP agreement costs substantially more to implement than past trade deals, that is unlikely to be much of a factor in Congress' consideration of the deal, said Brian Pomper, a former chief trade counsel on the Senate Finance Committee now at the law firm Akin Gump.
“The TPP is a big trade agreement," Pomper said. "It’s bigger than most that we’ve done recently. But the cost of these things — to be blunt — is often a bit of an afterthought." Lawmakers who support the underlying policy of the trade agreement aren’t likely to be swayed by arguments that the tariff cuts cost too much, he said.
The Congressional Budget Office will make an official estimate of the 10-year cost of implementing the TPP once the White House formally submits an implementing bill to Congress. That could still be months away, depending on the outcome of negotiations between the White House and Congress on several outstanding concerns.
It's unclear whether the Obama administration will include an estimate of the cost of implementing the agreement when it releases its fiscal 2017 budget request in early February.
That’s around the time the 12 countries are expected to sign the agreement in New Zealand. The Office of the U.S. Trade Representative did not immediately return calls for comment for this story.