On Manufacturing Job Losses and Outsourced Representation

I usually don't talk too much here about my real job, because it's seldom relevant to our discussions and it's not very "sexy", either. I've been in manufacturing for over 18 years, basically working my way up from driving a forklift to being a division head with 4-7 departments under my "banner", depending on the needs of our management structure.

To make a long, boring story less long (but probably equally boring), I have toiled for years exploring efficiency measures to tweak sometimes an extra penny or two per unit into our relatively small profit margins. I've tried to stay a few steps ahead of the cost monster, and I've done (if I do say so myself) a pretty good job of it. I've also tried to stay ahead of trends in our industry: I was cross-training my employees for diversity back when "specialization" was still a popular theme. I also became disgusted with the word "paradigm" while others were still tossing it out with smug satisfaction. ;)

Although I make it sound like an unfulfilling job, in reality, it has provided me an opportunity to work with and develop some really fantastic people. I am continually amazed at the seemingly limitless capacity of my fellow North Carolinians to not only do a job, but to so with an increasing efficiency that often far exceeds my initial projections. And they've done this while earning much less than they're worth, which is frankly amazing in our self-indulgent society these days. It is also (without a doubt) the reason our company has been able to moderately prosper for so many years.

With these things in mind, I have explored many methods to avoid layoffs whenever possible, such as the cross-training I mentioned above, which increases a worker's usefulness and limits the need for new hires that may not be sustainable. But my magic wand is beginning to fray. There are certain realities that come to bear in spite of all the calculations, innovations and motivations.

Manufacturing in this country is literally under attack by the overwhelming forces of Globalization and Free Trade, and there are those whom we've elected to safeguard these industries that are actively working against American workers, while telling us they are working for us. One of these people is Elizabeth Dole.

From her website:

“I have spoken repeatedly about the need to stop illegal transshipments from countries like China,” said Senator Dole. “The textile industry is reeling from the fraudulent trade practices of countries that refuse to play by the rules.”

Senator Dole added, “There is certainly much more work that is needed to help our manufacturing sector, but this is certainly a very positive step toward leveling the playing field for our North Carolina companies. I applaud the efforts of my colleagues in the House, Representatives Hayes and Myrick, on their leadership to get this language in the House Bill,” said Senator Dole.

Unfortunately, this is pure rhetoric. Dole is a staunch supporter of free trade agreements like CAFTA, which actually help to facilitate and legalize the transshipments of goods from China through Central American countries, as well as undercutting American workers by stripping away tariffs on goods manufactured in low-wage countries.

In addition to trade issues that adversely impact the competitiveness of our manufactured goods, our own corporations are outsourcing American (and especially North Carolinian) manufacturing jobs at an astounding rate. Of course Dole couldn't ignore this even if she wanted to (which she probably does). Instead of stopping the trend, it's go with the flow:

U.S. Sen. Elizabeth Dole, joined by Sen. Maria Cantwell (D-Wash.), today introduced the Trade Adjustment Assistance (TAA) Reform Act to improve the program to meet the needs of today’s workers. The legislation would expand TAA eligibility to displaced workers whose jobs are moved to a nation with no preferential trade agreement with the United States. In addition, the bill would provide automatic TAA eligibility for displaced textile and apparel employees.

The TAA Program, which is administered by the U.S. Department of Labor, provides aid to workers whose employment is adversely affected by offshore competition for the purpose of helping them prepare for and secure new employment. Eligible workers can receive training, job search and relocation allowances, income support and other reemployment services.

“In recent years, the forces of the global marketplace have triggered an economic transformation in North Carolina, and many of the new jobs being created require a more skilled labor force,” said Dole. “TAA is critical to ensuring that displaced workers have the opportunity to train for new careers and that they don’t slip through the cracks. Since my time as Secretary of Labor, I have championed the TAA program, and my strong support continues today.”

That's not a bad idea, but who's paying for this? You and me, as well as those who were/are/will get displaced by outsourcing. When given a chance to recoup money from the actual outsourcers causing this problem, Dole voted "No":

Statement of Purpose: To repeal the tax subsidy for certain domestic companies which move manufacturing operations and American jobs offshore.

So we're still giving tax subsidies to companies that layoff our workers so they can set up shop in another country, while you and I are stuck with taking care of the newly unemployed and using our tax monies to retrain them. Brilliant.

Yes, it is frustrating, and yes, Liddy Dole is more concerned about taking care of big business than she is about protecting our jobs. But there is something you can do about it:

Kay supports tax cuts for middle class families instead of borrowing billions from China to pay for reckless tax cuts for the extremely wealthy who never asked for them. She favors closing loopholes for big, multinational corporations so we can make sure small businesses and entrepreneurs can thrive. Kay will also continue the work she has started in the state Senate by supporting economic programs to create and keep good jobs right here in North Carolina.

Kay understands that Washington is broken and North Carolina families are frustrated at the lack of representation for them on the federal level. She will protect Social Security benefits and she will oppose any trade deals that are bad for North Carolina workers. She will fight for increases in the minimum wage, expanded access to family and medical leave and a stronger unemployment insurance system.

The race for the Senate is possibly the most critical one on the ballot come November. We need Kay, and she needs us. It's that simple. We only have a few more months to send Liddy back home to Kansas, or we can expect six more years of lost opportunities and lost jobs.

eta: how weird is this? I got the idea for this blog the other day when I heard (on the radio) that North Carolina's unemployment rate had topped 6%, but I had no idea the Hagan campaign had released this on Friday:

While in the United States Senate, Elizabeth Dole has continually voted to make it more difficult for workers to find and keep a job in North Carolina and the nation. In 2005 alone, Dole voted twice in favor of the Central America Free Trade Agreement (CAFTA), saying that “Textiles and apparel, agriculture, electronics, transportation equipment, pharmaceuticals and other sectors would benefit tremendously.” In addition, Dole has been a reliable vote in favor of tax breaks for offshoring, voting against an amendment that would repeal tax incentives for domestic companies that move their manufacturing plants to offshore locations. In 2004, Dole voted against an amendment that would have struck $39 billion in tax breaks on overseas income, and provided for an immediate nine percent tax deduction for domestic manufacturers. Senator Dole also voted against workforce training three times and against extending unemployment benefits five times.

“Our national economy is in shambles, we have no real plan for our long-term economic security and while Elizabeth Dole would like to believe her actions in Washington happen in a vacuum, it’s very clear that they have a real impact on North Carolina families,” said Hagan Communications Director Colleen Flanagan. “While Kay has been a leader in ensuring that important economic engines like High Point’s Furniture Market, which has an annual state economic impact of $1.14 billion, stay here in the state, and has repeatedly supported business packages to help stimulate job growth, Elizabeth Dole has proven once again that special interests and lobbyists are more important than working families in North Carolina. Experience like that has done nothing to help our state weather this economic downturn.”