We Need To Save The Internet

save the internet

We need to save the internet.Comcast, AT&T, and Verizon want to control what we can and cannot do online — and they’re about to get their wish.

Their lobbyists and lawyers have taken over the FCC — the agency meant to keep them in check. Now, the former lobbyist running the FCC is about to announce new rules that will kill Net Neutrality — the rule that stops Comcast, AT&T, or Verizon from deciding which sites you’re allowed to visit.

There are two specific subcommittees in Congress that could stop this decision before its officially proposed on May 15th, or even overturn it.

Sign the petition to the two congressional subcommittees: Stop the FCC and save the internet.The proposed FCC rules would change the internet from what we know now to something more like corporate television — a place where faster internet would be reserved for the giant corporations willing to pay to cut the line. 

Right now, the internet works like this: both people and websites pay money to their local (often monopolistic) Internet Service Provider (ISP) like Comcast or Verizon. In return, they’re hooked up to the internet. Information flowing through the internet is all treated equally. Under these new rules, the ISPs could hold us hostage. Verizon could refuse to let us see Youtube unless Google hands them wheelbarrows full of cash. People researching medications might not be able to find the studies showing serious side effects if Pfizer, GlaxoSmithKlein and others pay big bucks to get their sites to show up fastest. Most alarmingly, the legal basis of these rules could allow ISPs to censor any site they didn’t like.

Groups like SumOfUs only exist because of the open internet of today. Under these new rules, new innovations would find it much harder to take off, because their superior design would be behind an intentionally broken and slow connection. Sites like Wikipedia could disappear from public view or start plastering themselves in ads to pony up the cash needed to pay Comcast, AT&T, and Verizon for the privilege of allowing us to access them.

The head of the FCC is a former lobbyist and telecommunications executive, and he’s hired Comcast, Verizon, and AT&T corporate flacks into the FCC specifically to draft rules for destroying the internet. No wonder they love his proposal.

This is an all-hands on deck moment.  

Sign the petition to the House and Senate committees overseeing the FCC. We can’t let Comcast, Verizon, and AT&T get away with destroying the internet. 

Photo Stencil Adds Manufacturing Plant in Golden, Colorado

COLORADO SPRINGS, Colo. – Photo Stencil, LLC, a leading full-service provider of high-performance stencils and tooling, announces the addition of a manufacturing plant in Golden, CO. The new 35,200 sq. ft. facility has three cleanrooms: a 10,000 sq. ft. Class 10,000 cleanroom, a 4500 sq. ft. Class 1,000 cleanroom, and a small Class 100 cleanroom. The plant will be used to manufacture the electroform and more complex stencils that are needed for the small components and shrinking spaces found in advanced semiconductor packaging and challenging SMT applications. Laser and chemetch step stencils, blades, and screens will continue to be manufactured in the Colorado Springs, CO facility.
“We are very excited to have Photo Stencil expanding into our county. We look forward to having another global technology leader in our community,” said Jefferson County Commissioner Don Rosier.“This makes us the cleanest stencil manufacturer anywhere,” said Rachel Miller-Short, global VP of sales, Photo Stencil. “The continued move to shrinking components — reaching 30 microns and below — and package-on-package applications challenge the solutions side of our business.

“This makes us the cleanest stencil manufacturer anywhere”

Applications like these require a fully clean environment coupled with the latest technologies, manufacturing capabilities, and engineering teams. Photo Stencil focuses on these requirements and on meeting the needs of our customers today and beyond. This new facility will ensure our abilities to continue doing so, successfully.”
Full-scale manufacturing is expected to begin Q1 2015.About Photo Stencil
Photo Stencil, LLC provides high-performance stencilssqueegee blades, thick film and metal mask screens, and tooling for the surface mount technology (SMT) assembly, solar, and semiconductor industries. Its innovations include the patented AMTX E-FAB® electroformed stencils, high-performance, proprietary NicAlloy™, NicAlloy-XT™, laser-cut, and chemetch stencils, and patented electroformed E-Blade® squeegee blade. Stencil design support and customer-specific design libraries are also provided. Founded in 1979, Photo Stencil is headquartered in Colorado Springs and has a manufacturing facility in Mexico. For more information follow us on www.Linkedin.com/company/Photo-Stencil-llc, visit www.photostencil.com, or email info@photostencil.com.

ContactsPhoto Stencil, LLC
Rachel Miller-Short, +1 719-304-4224
rshort@photostencil.com


SOURCE:  BusinessWire

Pentagon Sneaker Policy Could Give New Balance a Boost

BOSTON – Massachusetts-based New Balance could get a boost worth tens of millions of dollars with a new Pentagon policy providing military recruits with U.S.-made sneakers.
New Balance is one of the few shoe manufacturers that meet all federal requirements, said Matt LeBretton, spokesman for the company that manufactures shoes in Lawrence, Boston and Maine.

Acting Deputy Secretary of Defense Christine Fox announced Friday that the Department of Defense will provide military recruits with American-made footwear, rather than giving stipends to buy shoes.

U.S. Rep. Niki Tsongas, a Lowell Democrat, has estimated that the military had spent about $180 million on cash allowances for recruits to buy sneakers since 2002.

U.S. shoe makers and lawmakers from Maine, Massachusetts and Michigan lobbied for the change to preserve some of the country’s few remaining shoe plants. In 2012, Rep. Mike Michaud of Maine provided a pair of monogrammed New Balance sneakers to the president, urging him to require the Defense Department to follow a law requiring military personnel to wear U.S.-made clothing from head to toe.


SOURCE:  CBS NEWS

Save Our Steel Jobs! #SOSJobs

In just a few hours Scott Paul, President of Alliance for American Manufacturing (AAM) will join Senator Sherrod Brown, Rep. Marcy Kaptur, and hundreds of workers and citizens in Lorain, Ohio to speak with one voice: Save Our Steel Jobs. Because they’re at risk. And Washington needs to know why.
These workers are facing a flood of illegally produced foreign steel, primarily from companies in South Korea. It’s priced way below fair value, and sold in deceptive ways to circumvent international trade laws.

But unless our government fully enforces the on-the-books rules, these companies might get away with their bad behavior – and that puts American jobs directly at risk.

So we’re going to do something about it!!  Today, the Alliance for American Manufacturing (AAM) is rallying with workers in Lorain, and we need you to stand with us … in person and online.Here are five steps you can take to help build a healthier manufacturing economy.

  1. Get the facts. Visit the website that outlines that details of this trade dispute, and the threat American workers are facing.
  2. Join the conversation online. We’re talking about this issue using #SOSJobs.
  3. Come out and join us. Check the website to find an upcoming rally near you. And tune in to today’s 1 pm ETrally in Lorain via our livestream.
  4. Take action. Send your elected officials a letter calling on them to stand up for enforcing our trade laws.
  5. Spread the word. Share this website with your friends and family and tell them to take action too!

It’s going to take all of us, pulling together, to make sure these American workers have a fair shake in the global marketplace. But with your help, we can get this done. So take the five steps! Join us in Ohio via our livestream today!  And we’ll keep it made in America.

Chicago-Area Manufacturing Grows at Fastest Pace Since October

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A worker manufactures parts for industrial coffee grinding equipment at the Modern Process Equipment Inc. (MPE) manufacturing facility in Chicago. Photographer: Tim Boyle/Bloomberg

 

Business activity in the Chicago area expanded in April at the fastest pace in six months, a sign manufacturing will keep supporting the world’s largest economy.
The Institute for Supply Management-Chicago Inc.’s business barometer rose to 63, exceeding all forecasts in a Bloomberg survey of economists and the highest since October, from 55.9 in March, according to a report today. A reading above than 50 signals expansion.

Rising demand for durable goods such as automobiles and business equipment is driving gains in manufacturing, which makes up about 12 percent of the economy. Faster job creation would generate wage growth, accelerating the pace of consumer purchases and resulting in more orders for factories.

The median forecast of 49 economists surveyed by Bloomberg was 57. Estimates ranged from 54 to 60.5.

The national factory index, produced by Tempe, Arizona-based Institute for Supply Management, probably advanced to 54.2 this month from 53.7 in March, according to the Bloomberg survey median ahead of the May 1 release.

The report showed orders, production and employment all jumped this month compared with March.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

To contact the editor responsible for this story: Carlos Torres at ctorres2@bloomberg.net


SOURCE:  Bloomberg News

Shopper Finds Prison Laborer's Cry For 'HELP' Inside Shopping Bag

NEW YORK CITY — Stephanie Wilson was reaching for a receipt inside a paper shopping bag from Saks Fifth Avenue when she found a letter pleading, “HELP HELP HELP.”
The message, written in blue ink on white lined paper, appeared to be a desperate cry from a man who said he made the bag while being unfairly held in a Chinese prison factory more than 7,000 miles away.

“We are ill-treated and work like slaves for 13 hours every day producing these bags in bulk in the prison factory,” continued the letter, which was tucked into the bottom of the bag. It ended, “Thanks and sorry to bother you.”

“I read the letter and I just shook,” said Wilson, 28, an Australian who lives in West Harlem. “I could not believe what I was reading.”

The note, which Wilson found after buying a pair of Hunter rain boots at Saks in September 2012, was signed Tohnain Emmanuel Njong and was accompanied by a small passport-photo sized color picture of a man in an orange jacket, she said.

The letter, which also included a Yahoo email address on the back, triggered a hunt for the whereabouts of the mystery man.

Wilson showed the missive to the Laogai Research Foundation, a Washington, D.C.-based advocacy group founded to fight human rights abuses in Chinese prisons. The nonprofit foundation began investigating using its contacts on the ground as well as online, a representative confirmed to DNAinfo New York.

But when Njong’s Yahoo email address bounced back, the nonprofit was unable to locate him.

Harry Wu, the founder of Laogai Research Foundation, spent 19 years in a Chinese prison factory, known as laogai. He said he took steps to verify the letter and believes that Njong took a huge risk in writing and sending it.

“There would be solitary confinement until you confess and maybe later they increase your sentence — or even death,” Wu said.

His organization referred the letter to the Department of Homeland Security, which investigates allegations of American companies using forced labor to make their products.

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Stephanie Wilson discovered a letter in 2012 hidden in a Saks Fifth Avenue shopping bag that she got when she bought a pair of Hunter rainboots at the department store. The letter claimed to be from a wrongly imprisoned man in China. Photo: DNAinfo/Serena Solomon

 

Homeland Security officials confirmed to DNAinfo that they were made aware of the letter, but could not say if they investigated it or are currently looking at Saks in connection to it. They also could not discuss Wilson’s claim that DHS agents interviewed her in June 2013.

But a DHS official said it’s not the first report of a cry for help letter from China ending up on American shores.

According to DHS senior policy adviser Kenneth Kennedy, the department was made aware of a woman in Oregon who made international news in 2012 when she discovered a similar letter detailing abuse and grueling labor in a Chinese prison when it fell from a Halloween decoration she’d bought at Kmart.

The Oregon letter was anonymous, though The New York Times later tracked down the man who said he wrote it.

A representative for Saks Fifth Avenue confirmed that the store was notified of the letter by the Laogai Research Foundation in December 2013 and said the company took the allegation seriously and launched an investigation, according to Tiffany Bourre, spokeswoman for Hudson’s Bay Company, which took a controlling stake in the famous department store last December.

Bourre said Saks does have its paper shopping bags made in China, but the company was unable to determine the specific origin of the bag that contained Njong’s letter and photo.

Hudson’s Bay Company is currently in the process of ensuring all vendors meet the new company’s standards on workers’ rights, Bourre added.

“HBC has a rigorous social compliance program that outlines our zero tolerance policy, which includes forced labor,” she said.

Two U.S. laws make it illegal for products made using slave, convict or indentured labor to be imported into the United States, according to Kennedy. However investigations are difficult with DHS required to prove how much a company knew about its own supply chain.

“Was there actual knowledge [of slave, convict or indentured labor?] Or was there knowledge that they avoided knowing or seeing?” Kennedy said. “All that plays into the investigation.”

A legal clause known as the consumptive demand exemption, which Kennedy referred to as “the Achilles heel of these laws,” can also greenlight imports regardless of the type of labor used if domestic consumption cannot be met otherwise.

In recent weeks, using the now-inactive email address and social media accounts, DNAinfo located a man who said he wrote the letter that Wilson found.

In a two-hour phone interview, a man who identified himself as Njong said he wrote the letter during his three-year prison sentence in the eastern city of Qingdao, Shandong Province.

Unprompted, Njong described obscure details in the letter, like its mention of Samuel Eto’o, a professional soccer player on English premiere league team Chelsea, who like Njong is from Cameroon in West Africa.

He added that he wrote a total of five letters while he was behind bars — some in French that he hid in bags labeled with French words, and others in English, he said.

Njong, who is now 34, said he had been teaching English in the southern Chinese city of Shenzhen when he was arrested in May 2011 and charged with fraud, a crime he said he never committed.

He said he was held in a detention center for 10 months while awaiting a government-sponsored lawyer, who represented him at his court trial and sentencing. He said he was barred from contact with the outside community.

Njong’s arrest and imprisonment were confirmed by his legal aid lawyer in China, whose name DNAinfo is withholding for the lawyer’s protection.

Embassies for Cameroon in Beijing and Washington did not return emails or calls for comment. The Chinese embassy in New York did not respond to requests for comment.

Njong said he was imprisoned in the eastern city of Qingdao, Shandong Province, where he was forced to work long days in a factory, starting at 6 a.m. and continuing as late as 10 p.m. He sometimes made paper shopping bags like the one from Saks, while other times he assembled electronics or sewed garments.

Each prisoner was required to meet a daily production quota, Njong said. He said he and the other convicts were given a pen and paper to record their productivity — and that he used that pen and paper to secretly write his letters.

“We were being monitored all the time,” Njong said. “I got under my bed cover and I wrote it so nobody could see that I was writing anything.”

He said he hoped the letter would help lead someone to him.

“Maybe this bag could go somewhere and they find this letter and they can let my family k
now or anybody [know] that I am in prison,” explained Njong.

Njong said he was discharged from prison in December 2013 — he received a reduced sentence for good behavior — and was put on a plane back to Cameroon, where he reunited with relatives who had no idea what had happened to him and had believed him to be dead, he said.

After struggling to find work in his home country, Njong recently moved to Dubai and secured a job that will allow him to stay there.

He said that though his imprisonment ran its course without intervention, he was happy that his letter made its way into at least one person’s hands.

“It was the biggest surprise of my life,” said Njong.  “I am just happy that someone heard my cry.”

Wilson, who has never spoken to Njong, said she thinks about his plea for help all the time. She had always been mindful of the products she purchased and where they were made in a bid to avoid sweatshop labor, but she never thought to worry about generic products like shopping bags.

Wilson has worked for the nonprofit Social Accountability International for the last four years.

“This has been the biggest eye-opener for me,” Wilson said. “I have never once thought about the people making my shopping bag or other consumable products like the packaging of the food I buy, or the pen I write with or the plastic fork I eat my lunch with.”


SOURCE:  Huffington Post

TPP: What's At Stake With The Trade Deal?

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The Trans-Pacific Partnership (TPP) will cover 40% of global trade

 

It is poised to be the world’s biggest ever free trade deal and possibly its most ambitious. A dozen countries are negotiating the Trans-Pacific Partnership (TPP), which if successful, will account for two-fifths of world trade.
Those countries are the US, Japan, Brunei, Malaysia, Vietnam, Singapore, Australia, New Zealand, Canada, Mexico, Chile and Peru. But will pushing through such a pact prove too gargantuan a task? And will China continue to be left out of talks? Four experts give their views on what’s at stake for the US, Japan, China and Vietnam.

US: ‘Strategically significant’
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President Obama, together with Japanese Prime Minister Shinzo Abe, are the main TPP negotiators

 

Joshua Meltzer, Brookings Institution:

US President Barack Obama’s trip to Asia this week and his meetings with Japanese Prime Minister Shinzo Abe and South Korean President Park Geun-hye present an important opportunity to refocus attention on the TPP.

It is the most significant trade agreement the US is negotiating, representing 40% of world trade and a destination for over 60% of US exports.

As importantly, the TPP is strategically significant as it is the economic dimension of a broader US rebalancing towards Asia.

The two largest economies involved in the TPP are the US and Japan. Their intensive bilateral discussions have been aimed at liberalising each other’s markets for a range of goods in sensitive areas such as agricultural products and cars.

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Joshua Meltzer

 

“It is the most significant trade agreement the US is negotiating”

Successfully resolving US-Japan market access issues will place pressure on other TPP members to liberalise their own sensitive sectors, creating momentum in the negotiations towards a high-standard agreement.

Progress in US-Japan discussions will significantly improve prospects for concluding the TPP. Mr Obama should use his trip to Tokyo this week as an opportunity to push Mr Abe to liberalise faster.

More countries may also potentially join the trade grouping. South Korea is not a TPP member, but Ms Park has indicated the country’s desire to join.

China’s views of the TPP will also be discussed in Tokyo and Seoul. The US has made it clear that China is welcome to join the TPP if it can demonstrate a willingness to live up to the rules being negotiated.

This reflects the strategic dimension of the TPP – to be a template for economic growth in the region.


Japan: ‘Compelling national interest’
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Rice is one of the five “sacred” agricultural products in Japan.

 

Takuji Okubo, Japan Macro Advisors:

Over the last 12 months, most of the sticking points that Japan had against joining the TPP seem to have been resolved.

On the five so-called “sacred” agricultural products, the US has already agreed to let Japan keep its tariff on rice, wheat and sugar in exchange for Japan taking non-tariff measures to increase the imported quantities. On beef, Japan seems to have gotten away by agreeing to lower tariffs by 9% in the distant future. Negotiations are still ongoing about the tax restrictions on pork.

The domestic political climate also favours Mr Abe. The rival opposition party, the Democratic Party of Japan, promoted the TPP while it was in power. Among major opposition parties, the Japanese Communist Party is the only one who has been consistently against the TPP.

According to a poll by Japan’s public broadcaster NHK, 31% of people supported joining the TPP, while 14% were against it and 45% said they were indifferent.

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Takuji Okubo

 

“Is the TPP beneficial for Japan in the first place? From an economic point of view, there is no room for doubt”

Is the TPP beneficial for Japan in the first place? From an economic point of view, there is no room for doubt.

Japan’s government estimates the economy will expand by 0.66% as a result of the elimination of tariffs. When we include non-tariff deregulation, the economic benefit will be much larger, probably to the tune of 2% to GDP.

Beyond economic pluses and minuses, the TPP brings forth a much broader and compelling national interest as far as Japan is concerned. With geo-political pressure from China intensifying, it is also in Japan’s interest to solidify its alliance with the US and other Asia-Pacific nations.

While I believe any political arrangement to isolate China would be neither wise nor feasible, a strong economic alliance among Asian countries would be a good bargaining chip to convince China towards a friendlier and mutually beneficial relationship with Japan.

Japan should and is ready to embrace the TPP.


China: ‘Reputational benefits’
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China is in the middle of an ambitious programme of economic reform.

 

Brian Jackson, IHS Global Insight:

China stands to gain considerably by joining the TPP. Most immediately, it would add China to a growing coalition of countries co-operating to increase trade and investment across dimensions that have been frustrated in traditional multilateral forums.

Moreover, joining negotiations with high ambitions provides China greater scope for defining its own form of participation than abstaining and joining later, after an agreement is reached by earlier members.

An omission as notable as China’s weakens the total benefits of any agreement reached. In addition to helping the TPP build momentum, Beijing throwing its weight behind the TPP would also help frame China as a meaningful advocate for reform and positive change.

Over the past few years economic growth in China has slowed by about one-quarter as debt ballooned.

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Brian Jackson

 

“China joining the TPP would offer immediate reputational benefits, and plant the seeds for boosted economic activity”

China’s new leadership has correctly laid out an ambitious reform agenda to spur the economic restructuring necessary to secure another decade or more of growth, although implementing those lofty ideals is not guaranteed.

The TPP’s focus on services, investment and government procurement, among other trade issues, would dovetail nicely into China’s current efforts to reform its economy. This includes managing local government debt while growing social services offered to a larger share of rural-urban migrants.

China joining the TPP would offer immediate reputational benefits, and plant the seeds for boosted economic activity once an agreement is reached.

Given China’s ambitions, abstaining from the TPP would not only be a conspicuous omission, it could also sow the seeds for slower investment and services trade activity in the future, given stronger policy incentives elsewhere.


Vietnam: ‘A clear winner’
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Vietnam is already the second largest exporter of clothing to the US.

 

Jack Sheehan, DFDL Legal and Tax Services:

Vietnam is set to gain the most from the TPP due to the potential for a greater share of the apparel and footwear market, particularly in the US and Japan.

In 2012, Vietnam exported almost $7bn (£4.2bn) worth of apparel to the US, which accounted for 34% of US apparel imports. Vietnam also exported $2.4bn worth of footwear.

The TPP will allow Vietnam to export apparel to the US at a 0% tariff rate, which will make Vietnamese exports even more competitive.

Vietnam enjoys several competitive advantages, such as low labor costs, and benefits from being closer in proximity to major textile exporters China and South Korea. It also enjoys strong government support such as subsidies on financing, energy and trade promotion.

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Jack Sheehan

 

“The TPP will allow Vietnam to export apparel to the US at a rate of 0%, which will make Vietnamese exports even more competitive”

However, a key concern for Vietnam is the Rules of Origin (ROO) on apparel. Vietnam is pushing for the more liberal “cut and sew” ROO, which only requires that cutting and sewing of finished products originate in TPP countries.

This is unlike most US free trade agreements which adopt a “yarn-forward rule”, which states that yarns used to make the textile or apparel must have been produced in the TPP country.

The yarn-forward rule benefits the US yarn and fabric industry because it exports yarn and fabrics to TPP countries like Vietnam. The industry accounts for two million jobs in the US.

However, the “yarn-forward rule” does not benefit Vietnam since most of its yarns and fabrics are sourced from China and South Korea, which are non-TPP countries.

There are other challenges that would have an impact on Vietnam. TPP rules relating to state-owned enterprises may affect the government’s dominance in the garment industry.

According to the US Congressional Research Service, Vinatex, which is owned by the Vietnam government, reportedly accounts for 40% of apparel production and 60% of textile production.

It remains an open question as to whether the TPP rules will prompt greater privatization of the sector.

SOURCE:  BBC News

Adidas and Nike Supplier Goes on Strike in China, Halting Output

Yue Yuen Industrial Holdings Ltd., the world’s largest branded shoemaker, fell the most in nine months in Hong Kong trading after the company said it plans to increase factory workers’ compensation in a bid to end a strike.
Yue Yuen fell 5 percent, the most since July 2013, to close at HK$24.80, extending the stock’s decline this year to 4.3 percent. The Hang Seng Index has lost 2.5 percent in 2014.

Workers at the shoemaker, a supplier to companies including Adidas AG and Nike Inc. continued to strike for a seventh day, disrupting output, spokesman George Liu said today. Yue Yuen, based in Hong Kong, offered to add a monthly living allowance of 230 yuan ($37) at its factories in southern China starting May 1, Liu said yesterday. It also agreed to bring forward to next month a social-security benefit plan originally scheduled for 2015, he said.

Workers have disrupted production in Yue Yuen’s Dongguan factory complex, which employs more than 40,000 people, since April 14 in a dispute over pay, benefits and the right to pick their own union. More than 50 percent of the workers were on strike today, Liu said. China Labour Watch, which estimated the striking workers at about 30,000, said a small number had returned to work, without quantifying it.

Employees were seen coming to the plant, clocking in and then leaving yesterday. Some workers, who asked not to be identified because they or their family members could lose their jobs, said yesterday that they were still on strike.

Rising CostsThe labor dispute adds challenges to Chinese manufacturers faced with disruptions as wages climb and workers demand better compensation. Rising costs have also prompted some employers to move production abroad.

Employees interviewed at the factory yesterday and on April 19 said the company had failed to agree on demands for more pay, a change in contract status and reimbursement for unpaid benefits contributions. Some demanded no punishment for strikers and the right to elect their own union leaders.

At least 80 percent of the workers won’t take the offer, said Xiang Feng, 28, a worker in the factory’s finance department. The company’s plan to raise monthly contributions for social security would make it compulsory for employees to boost their own share of payments, she said.

“Workers may end up with a take-home salary almost unchanged or maybe even lower than before,” Xiang said.

More DemandsThe strikers expanded demands after an initial dispute over contributions to government-mandated social security and housing benefits for workers. The local government is fully aware and supportive of Yue Yuen’s proposed plan, Liu said.

Monitoring group China Labour Bulletin said on its website strikers at the Dongguan facility numbered at least 10,000, while Yue Yuen said April 16 that more than 1,000 were striking. Wal-Mart Stores Inc. and International Business Machines Corp. faced strikes earlier this year in China by workers demanding better compensation.

China’s wages are set to increase by 10 percent or more in 2014, driving more low-cost manufacturers out of the country and boosting consumption, according to analysts at firms including Bank of America Corp.

Nike has produced more shoes in Vietnam than in China since 2010. Adidas said in 2012 it would close the last factory it owned in China.

Riot PolicePolice with riot gear and dogs were present outside Yue Yuen’s 1.4 million-square-meter (15 million square-foot) Dongguan complex yesterday. Dozens of workers were taken away by police last week, the official Xinhua News Agency reported April 17, without saying why the workers were taken. No one was injured and there were no clashes, Xinhua reported.

Police have told workers not to congregate around the factory, said three workers who asked not be identified because they or their family members could lose their jobs.

Taiwan-based Pou Chen Group, the shoemaker’s parent company, is in discussions with the local government to resolve the striking workers’ concerns and an investigation will be conducted as soon as the strike ends, Adidas China said in an e-mailed statement April 18.

Nike is aware of and concerned by the events and is “continuing to monitor the dialog between factory management and the workers, as well as production at the factory,” the Beaverton, Oregon-based company said by e-mail on April 18.

Operations at a Yue Yuen factory in Jiangxi province in eastern China have returned to normal today after a production disruption, Liu said. Workers began a strike April 18 because they didn’t want to pay social security insurance, he said.

Yue Yuen, which had 423,000 employees as of 2012, was founded in 1988 by Taiwanese owners and has factories in China, Vietnam and Indonesia, according to its website.


SOURCE:  Bloomberg News

Learn How One American Manufacturer Is Fighting to Keep Jobs in the USA

POMONA, CA–(Marketwired – April 04, 2014) – Coleman® Spas is a company that understands the importance of keeping jobs in the United States. Committed to keeping over 200 workers employed, this leading spa manufacturer believes in the American Dream “the opportunity for prosperity, success, and upward social mobility achieved through hard work.” This message ignites drive and determination in the hearts of all who work to keep production going in the Southern California factory each day.
Coleman® is a brand with a strong legacy of innovation and American Tradition determined to do their part in strengthening the economic and social structure of American families. The Coleman® story started over 114 years ago when W.C. Coleman saw a new type of lamplight that burned with a strong, steady white flame. It was unlike anything available at the time. His vision was to bring this new form of light to farms and ranches across America. In that same vein Coleman® Spas is still working to enhance the lives of American people by creating jobs and continuing to be innovative in designing well built products at affordable prices. “Built Strong in America, for America” will resonate through communities across the country as the spa manufacturer spreads their message to dealers and consumers alike; Coleman® Spas is investing in the American economy one spa at a time.

When an American made product is purchased by a consumer it means they have given manufacturers a reason to keep jobs in the USA. Keeping Americans employed means working class families have money for education, homes, and yes home resort items such as spas that were not previously afforded. It is amazing how buying American made products can trigger a positive economic cycle which will eventually have an upward effect on the quality of life for Americans across the nation and it all can be done by purchasing products that are Made in the USA.

Small or large any purchase of products Made in the USA helps a member of an American community flourish. By encouraging consumers to make a conscience decision to buy American made products, Coleman® Spas will help build the economy and rejuvenate the strength and determination of the American spirit.

To learn more about Coleman® Spas visit www.colemanspas.com. Members of the media interested in speaking with a Coleman® Spas representative contact Amy Malone, amalone@colemansale.com or 909-620-0480.

About Coleman® Spas

The Coleman® story began over 114 years ago when W.C. Coleman began manufacturing lanterns in Wichita, Kansas. Since then, Coleman® has built its trusted reputation based on its beliefs that nothing is really sold until it gives 100% satisfaction and that every Coleman® product must be the best of its kind. Customers trust that Coleman® products will provide all the comforts of home on any dark and cool night under the stars. Coleman® has been a respected name in the world of outdoor recreation for decades and has gained a solid reputation with consumers by manufacturing the world’s best camping products.

The same innovation and exploration that ignited Coleman® lanterns has inspired the creation of the Coleman® Spas collection. Coleman® Spas are manufactured in the United States with cutting-edge technology and affordability. Coleman®Rugged Rotomold Spas, Acrylic Spas and Swim Spas are built with quality and can be trusted to last from generation to generation. Buy Coleman® Spas and buy with confidence.


Made in USA Steel To Be Used On New Tappan Zee Bridge

To build the new Tappan Zee Bridge, New York is bucking a trend and buying American, with steel made in Indiana.
Three of ArcelorMittal USA’s plate mills are furnishing steel for the $3.9 billion bridge project, The Times in Munster, Ind., reported. ArcelorMittal expects to provide about 160,000 tons of plate for the twin-span crossing, which will require more than 1,000 piles.

The state Thruway Authority included a Buy America provision in its contract with Tappan Zee Constructors, the consortium designing and building the bridge, that requires it to use steel and iron manufactured in the United States.

Buy America provisions restrict the use of foreign steel, iron and items containing steel and/or iron on a contract to one-tenth of 1 percent of the total contract cost or $2,500, whichever is greater, according to the DOT.

The Thruway Authority is replacing the Tappan Zee Bridge with a 3.1-mile twin-span cable-stayed bridge with angled main span towers, making it the largest bridge construction project in the history of New York. It will also be the world’s widest bridge.

It’s also the biggest transportation design-build project in U.S. history, according to Infra Insight, a blog that tracks infrastructure projects.

The inclusion of American-made steel plate in the new bridge bucks a trend of steel made in China being used in major infrastructure projects. China-made steel was recently used in the Verrazano-Narrows Bridge and San Francisco-Oakland Bay Bridge.

ArcelorMittal’s Burns Harbor facility supplied high-performance steel for the bridge pilings last year and will continue to provide steel to the steel fabricators High Industries and Hirschfeld Industries Bridge, who are two of the major contractors on the five-year project.

“We are very pleased to have been selected to provide our high-performance plate material for this major, historic infrastructure project,” said ArcelorMittal USA Plate CEO John Battisti. “Our USA plate team has been keenly involved in weekly meetings with our customers on the planning, development and delivery of these plate products, to ensure they are pleased with our performance during all phases of the project.”

American Institute of Steel Construction President Roger Ferch said the contract shows the U.S. steel industry remains competitive.

He said the award of the Tappan Zee structural steel contract to American companies “validates the fact that the United States steel construction industry has the capacity, capability and collaborative spirit to meet our nation’s needs.”

To date, 53 of the 121 subcontractors and suppliers working on the project — approximately 44 percent — are disadvantaged business enterprises, according to a press release from the state.

Disadvantaged business enterprises are small businesses which are at least 51 percent owned by socially and economically disadvantaged individuals. The federal certification includes “minority-owned business enterprises” and “women-owned business enterprises” that meet certain federal requirements.

Gov. Andrew Cuomo and the Federal Highway Administration made a commitment to ensure that at least 10 percent, or $314 million, in subcontracts associated with the New NY Bridge project will go to businesses that qualify as disadvantaged business enterprises, according to the state.

Among the subcontractors, 23 percent of the disadvantaged business enterprises are based in the Hudson Valley.

“Our team is committed to providing meaningful opportunities for disadvantaged businesses and the team members of Tappan Zee Constructors have a solid track record of meeting and exceeding participation goals,” Carla Julian, TZC community outreach/diversity manager, said in a press release.

Tappan Zee Constructors is expected to finish the bridge, which is designed to last 100 years without any significant structural maintenance, in early 2018.


SOURCE:  Poughkeepsie Journal

Veterans Benefits Bill Blocked

Senate Republicans derailed efforts to move forward with a $21 billion bill to enhance health care, education and job benefits for veterans.
Republicans stopped the veterans bill from moving on a procedural vote, which needed 60 votes. The final tally was 56-41.

Republicans and Democrats normally agree on the need to enhance benefits for the nation’s 22 million veterans and their families, but Republican senators wanted to lower the amount of spending in the bill.  The GOP senators also wanted to include a measure that would have imposed new sanctions against Iran, which President Obama has warned against doing at this time.  Senate Majority Leader Harry Reid blocked the amendments from being considered.

“Shame on the Republicans for bringing base politics into a bill to help the veterans,” Reid said on the Senate floor Thursday morning.

The bill would have improved benefits for veterans, including better health care and dental services provided by the VA.  It also would have guaranteed post-9/11 veterans access to in-state tuition rates at public colleges and universities in any state.


SOURCE:  ABC News

U.S. Olive Oil Producers Want Stricter Guidelines For Imports

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Bottles of California oil display certification stickers. (Susan Walsh / Associated Press)

If you think an olive oil imported from Italy or Spain is superior to one made in California, U.S. olive oil producers would like to have a word with you. They’re looking to change the perception of domestic olive oil, and want you to reach for American-made — in most cases, California-made — at the store.  
To level the playing field, U.S. producers are asking the government to place stricter guidelines on imported olive oil, which makes up 97% of the market. They’ve gone as far as holding olive oil tastings for members of Congress.

But it doesn’t seem to be working. The recently passed farm bill excluded a clause that would have allowed for government testing of domestic and imported olive oil to make sure it was labeled correctly. The main concern is foreign producers cutting their extra virgin olive oil with other oils yet still labeling it as extra virgin.

The U.S. Department of Agriculture classifies olive oil as “virgin olive oil, or blends of virgin olive oil and refined olive oil.”

A recent U.S. International Trade Commission report on olive oil outlines how international standards are often unenforced, which can allow for mislabeling. The report highlights the differences in each country’s standards, production, consumption and distribution. 

A “national standard of identity” enforced by the government would permit “more aggressive U.S. action,” Eryn Balch, North American Olive Oil Assn. executive vice president, said in a statement. That action would include injunctions and seizures against unscrupulous participants in the olive oil market.

The American Olive Oil Producers Assn. plans to keep putting pressure on the USDA to perform mandatory quality testing for all olive oils.

Are you an import-only olive oil buyer? Let us know in the comments below.  


SOURCE:  LA Times

Why China's Ugly Manufacturing Report Should Be Ignored

China’s HSBC flash (preliminary) manufacturing purchasing managers’ index (PMI) fell to a seven-month low of 48.3 in February. This was significantly worse than the 49.5 reading expected by economists.
Any reading below 50 signals contraction in China’s manufacturing sector.

Markets around the world started selling after the report came out.

However, economists agree that we shouldn’t jump to any conclusions based on this one report.

“Surely this flash PMI has quite big market impact and markets have already been hit today,” said Bank of America Merrill Lynch’s Ting Lu. “However, our suggestion is still to downplay it due to the poor quality of this HSBC flash PMI in the year beginning. The survey period of the HSBC flash PMI was 12-18 Feb, but the first six days in February are national holidays and many SMEs, which could be the majority of the HSBC PMI sample, were not open until mid-Feb, so the quality of this flash PMI could be quite low.”

“Also note that PMI data are heavily seasonally adjusted, but the seasonal adjustment is quite inaccurate due to the different timing of Chinese New Year holidays and short record (since year 2005),” added Lu. “Actually the HSBC PMI did a poor job in predicting turning points of the Chinese economy in the past two years.”

The HSBC’s PMI is computed using monthly replies to questionnaires sent to purchasing executives.

“The sample period is very short, covering only seven days (12-18 February) according to the index’s compiler, Markit, with a response rate of approximately 85%-90% our of a total sample of about 420 manufacturers,” said Barclays’ Jian Chang and Jerry Peng, who also acknowledged many of Lu’s criticisms.

Unfortunately, market participants already appear to be trading on the news.


SOURCE:  Business Insider

NoNetz Defies Industry Experts

NoNetz anti chafe swimwear for boys and men have been advised by top business and fashion experts to move production from the USA to China. They are committing to stay.
Mahopac, NY – February 13th, 2014

NoNetz announced today that they will do everything in their power to continue to have their swimsuits made in Brooklyn, NY. Expert fashion and business consultants have advised NoNetz to go offshore to China, stating it was the only way to get to profit.  After much internal debate, they have decided to stick to their original commitment, believe in the loyalty of their customers, and keep jobs and the money in this country for as long as they can. CEO, Kym Timpano: “NoNetz needs to sell at least 3000 bathing suits this year in order to remain made here.” They are actively petitioning local and state politicians to incent and/or subsidize manufacturers and business owners who stay in this country. What they have currently found is although Made in the USA is popular rhetoric, there is little to no action plans behind it.  It is NoNetz’s belief that being a good business person and being a good American should not be mutually exclusive concepts.

About NoNetz Anti-Chafe Swimwear

NoNetz has replaced the traditional mesh/net brief in boys and men’s bathing suits with their unique, anti chafe, anti bacterial liner.  Their liner has  completely eliminated the chafing rash 9 out of 10 men and boys experience at the beach.

Wave Good-bye to Irritating Swimwear.

For more information, please visit http://www.NoNetz.com.

About NoNetz

We are sisters, wives and mothers who love beach vacations, but for years have seen our sons and husbands get uncomfortable, chafing rashes from the mesh in their bathing suits. Then our sister experienced what millions of other Americans are currently experiencing: Loss. She lost her health, her job, her marriage & her house. We decided to develop a better, more comfortable bathing suit for guys with the hope that one day, we can help our sister build a better, more comfortable life for her and her family.
For more information, please visit http://www.NoNetz.com.

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U.S. Olympian Duffle Bags Made By Local Company

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A local company is helping Team USA carry their equipment in style during these winter games. 
Fieldtex makes duffle bags for medical and military equipment. They wanted to make bags for Olympians and sent e-mails to U.S. outfitter Ralph Lauren that went unanswered. It turns out Ralph Lauren found them.

“One of their designers was searching online, found our website, gave us a call around 5 [p.m.] one day. Someone happened to be in the office still after everyone had left; picked up the call and said ‘yeah, that’s something we can do,” Jo Nathan Abbey said.

“They made it apparent right from the beginning how important it was that all companies that manufacture products from the U.S. It’s an honor to work with a company like Ralph Lauren,” Carol Maynard said.

Over 500 duffles were made for each Olympian and Paralympian. Extras went to the Olympic Village store and are already sold out.

“To see our products get in something as big as this, it’s more personal than an industrial product. It’s huge for every employee. Morale is definitely up because of that,” Maynard said.

“Sure, Fieldtex is hoping their Olympic exposure leads to more business, but that wasn’t the point. They just wanted to be involved. And what’s more American than a homegrown company with a melting pot of employees from 23 different nations supporting Team USA at the Olympics,” Abbey said.

“It really pulled people together. We have something like 170 employees and we had people in the office snipping threads towards the end making sure every little piece got together,” production manager Cynthia Helander said. 

The bags were actually produced last summer, and speaking of summer- 

“We are going to be waiting for that next call from Ralph Lauren and for the next Olympics,” she said.

Riverside To Close Cut/Sew Factory, Laying Off 140 People

MOULTRIE — Rumors that a major change was in the making for Riverside Manufacturing Co., a mainstay garment manufacturer and employer in Moultrie since 1911, were verified Tuesday. Some 140 employees will lose their jobs.
Riverside officials said it is closing its cutting, sewing and warehousing operations here in Moultrie. The closing is scheduled for late April.

“We worked diligently for many months to secure new contracts that required ‘Made in USA’ garments. However, a recent volume reduction in our largest federal government uniform program made the costs of domestic production unsustainable,” said Lisa V. Zeanah, Riverside chief executive officer.

The news was broken to employees Tuesday.

Zeanah said the closing will complete the transition of Riverside’s production of uniforms and apparel to contractor partners.

“We have decided to close our remaining domestic production facilities and move this volume to our established contractor partners. We value the dedication and long-term commitment our employees have shown over the years, but at present we have exhausted our options to keep Riverside employees sewing garments in he USA,” she added.

Zeanah, daughter of former Riverside CEO Jerry Vereen, said senior management, customer service, website design, product development, supply chain management, marketing, accounting and quality control laboratory testing will continue at the Moultrie headquarters at 301 Riverside Drive.

Zeanah said it was a difficult decision but that the company felt that consolidating production into fewer facilities will improve “our ability to manage our supply chain and will position Riverside for solid growth for many years to come.”

She added, “We hope that the community will support the affected employees as they transition into other work. We are coordinating with our local Department of Labor to provide assistance.”

Darrell Moore, executive director of the Colquitt County Development Authority, said, “Riverside has been a cornerstone of the Colquitt County community for more than 100 years. They have provided stable employment opportunities for our citizens and have been a model corporate citizen. Our community will do everything we can to support Riverside as they work through this transition and will be there to help them maintain their operations in Moultrie.”

Founded by and managed by the Vereen family for over a century, Riverside  has provided work wear and protective apparel in the U.S. In addition to Moultrie, Riverside owns and operates facilities in Atlanta and the Dominican Republic. Additional information about Riverside can be found at www.RiversideUniforms.com and www.RiversideFR.com.

Medicines Made in India Set Off Safety Worries

NEW DELHI — India, the second-largest exporter of over-the-counter and prescription drugs to the United States, is coming under increased scrutiny by American regulators for safety lapses, falsified drug test results and selling fake medicines.
Dr. Margaret A. Hamburg, the commissioner of the United States Food and Drug Administration, arrived in India this week to express her growing unease with the safety of Indian medicines because of “recent lapses in quality at a handful of pharmaceutical firms.”

India’s pharmaceutical industry supplies 40 percent of over-the-counter and generic prescription drugs consumed in the United States, so the increased scrutiny could have profound implications for American consumers.

F.D.A. investigators are blitzing Indian drug plants, financing the inspections with some of the roughly $300 million in annual fees from generic drug makers collected as part of a 2012 law requiring increased scrutiny of overseas plants. The agency inspected 160 Indian drug plants last year, three times as many as in 2009. The increased scrutiny has led to a flood of new penalties, including half of the warning letters the agency issued last year to drug makers.
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Ranbaxy, one of India’s biggest drug manufacturers, pleaded guilty to felony charges and paid a $500 million fine last year. Adnan Abidi/Reuters

Dr. Hamburg was met by Indian officials and executives who, shocked by recent F.D.A. export bans of generic versions of popular medicines — like the acne drug Accutane, the pain drug Neurontin and the antibiotic Cipro — that the F.D.A. determined were adulterated, suspect that she is just protecting a domestic industry from cheaper imports.

“There are some people who take a very sinister view of the F.D.A. inspections,” Keshav Desiraju, India’s health secretary until this week, said in a recent interview.

The F.D.A.’s increased enforcement has already cost Indian companies dearly — Ranbaxy, one of India’s biggest drug manufacturers, pleaded guilty to felony charges and paid a $500 million fine last year, the largest ever levied against a generic company. And many worry that worse is in store.

“If I have to follow U.S. standards in inspecting facilities supplying to the Indian market,” G. N. Singh, India’s top drug regulator, said in a recent interview with an Indian newspaper, “we will have to shut almost all of those.”

The unease culminated Tuesday when a top executive at Ranbaxy — which has repeatedly been caught lying to the F.D.A. and found to have conditions such as flies “too numerous to count” in critical plant areas — pleaded with Dr. Hamburg at a private meeting with other drug executives to allow his products into the United States so that the company could more easily pay for fixes. She politely declined.

India’s drug industry is one of the country’s most important economic engines, exporting $15 billion in products annually, and some of its factories are world-class, virtually undistinguishable from their counterparts in the West. But others suffer from serious quality control problems. The World Health Organization estimated that one in five drugs made in India are fakes. A 2010 survey of New Delhi pharmacies found that 12 percent of sampled drugs were spurious.

In one recent example, counterfeit medicines at a pediatric hospital in Kashmir are now suspected of playing a role in hundreds of infant deaths there in recent years.

One widely used antibiotic was found to contain no active ingredient after being randomly tested in a government lab. The test was kept secret for nearly a year while 100,000 useless pills continued to be dispensed.

More tests of hospital medicines found dozens more that were substandard, including a crucial intravenous antibiotic used in sick infants.

“Some of the fake tablets were used by pregnant women in the post-surgical prevention of infections,” said Dr. M. Ishaq Geer, senior assistant professor of pharmacology at the University of Kashmir. “That’s very serious.”

Investigations of the deaths are continuing, but convictions of drug counterfeiters in India are extremely rare.

Satish Reddy, president of the Indian Pharmaceutical Alliance, said Indian drug manufacturers were better than the F.D.A. now contends. “More rigorous enforcement is needed, for sure, but this impression that India is overrun with counterfeits is unjustified,” Mr. Reddy said.

But Heather Bresch, chief executive of Mylan, which has plants in the United States and India, said regulatory scrutiny outside the United States was long overdue. “If there were no cops around, would everyone drive the speed limit?” Ms. Bresch asked. “You get careless, start taking risks. Our government has enabled this.”

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Dr. Margaret A. Hamburg, the head of the Food and Drug Administration, is in India this week to express her concerns. Associated Press

For Dr. Hamburg, the trip is part of a long-running effort to create a global network of drug and food regulators to help scrutinize the growing flood of products coming into the United States, including 80 percent of the seafood consumed in the United States, 50 percent of the fresh fruit, 20 percent of the vegetables and the vast majority of drugs.

She has gone to conclaves of regulators from Europe and elsewhere to coordinate policing, but Indian officials have so far not attended such meetings.

Many of India’s drug manufacturing facilities are of top quality. Cipla, one of the industry’s giants, has 40 plants across the country that together can produce more than 21 billion tablets and capsules annually, and one of its plants in Goa appeared just as sterile, automated and high tech on a recent tour as those in the United States.

Cipla follows F.D.A. guidelines at every plant and on
every man
ufacturing line, and the company exports more than 55 percent of its production, said Yusuf Hamied, the company chairman.

But Benjamin Mwesige, a pharmacist at the Uganda Cancer Institute in Kampala, said in an interview in July that the institute had stopped buying cancer drugs from India in 2011 because it had received shipments of drugs that turned out to be counterfeit and inactive, with Cipla labels that Mr. Mwesige believed were forged.

He became suspicious when doctors began seeing chemotherapy patients whose cancer showed none of the expected responses to the drugs — and who also had none of the usual side effects. The drugs that had been prescribed were among the mainstays of cancer treatment — methotrexate, docetaxel and vincristine. Laboratory tests confirmed that the drugs were bogus, and Mr. Mwesige estimated that in 2011 20 percent of the drugs that the institute bought were counterfeit.

Enforcement of regulations over all is very weak, analysts say, and India’s government does a poor job policing many of its industries. Last month, the United States Federal Aviation Administration downgraded India’s aviation safety ranking because the country’s air safety regulator was understaffed, and a global safety group found that many of India’s best-selling small cars were unsafe.

India’s Central Drugs Standard Control Organization, the country’s drug regulator, has a staff of 323, about 2 percent the size of the F.D.A.’s, and its authority is limited to new drugs. The making of medicines that have been on the market at least four years is overseen by state health departments, many of which are corrupt or lack the expertise to oversee a sophisticated industry. Despite the flood of counterfeit drugs, Mr. Singh, India’s top drug regulator, warned in meetings with the F.D.A. of the risk of overregulation.

This absence of oversight, however, is a central reason India’s pharmaceutical industry has been so profitable. Drug manufacturers estimate that routine F.D.A. inspections add 25 percent to overall costs. In the wake of the 2012 law that requires the F.D.A. for the first time to equalize oversight of domestic and foreign plants, India’s cost advantage could shrink significantly.

Some top manufacturers are already warning that they may leave, tough medicine for an already slowing economy.

“I’m a great nationalist, an Indian first and last,” Dr. Hamied said. “But companies like Cipla are looking to expand their businesses abroad and not in India.”

American businesses and F.D.A. officials are just as concerned about the quality of drugs coming out of China, but the F.D.A.’s efforts to increase inspections there have so far been frustrated by the Chinese government.

“China is the source of some of the largest counterfeit manufacturing operations that we find globally,” said John P. Clark, Pfizer’s chief security officer, who added that Chinese authorities were cooperative.

Using its new revenues, the F.D.A. tried to bolster its staff in China in February 2012. But the Chinese government has so far failed to provide the necessary visas despite an announced agreement in December 2013 during a visit by Vice President Joseph R. Biden Jr., said Erica Jefferson, an F.D.A. spokeswoman.

The United States has become so dependent on Chinese imports, however, that the F.D.A. may not be able to do much about the Chinese refusal. The crucial ingredients for nearly all antibiotics, steroids and many other lifesaving drugs are now made exclusively in China.


SOURCE:  New York Times

Manufacturing Renaissance Real, Maybe Not What You Think

America’s heavy manufacturing was once a source of national pride. Think of Rosie the Riveter posters during World War II or the huge post-war factories that shaped skylines of cities like Cleveland and Pittsburgh. In the 20th century, America’s factories produced more than those of any other country.
But as the 20th century ended, the once-mighty sector started contracting. Manufacturers discovered cheaper labor overseas. Many factories in the U.S. began closing. And then in late 2007 came the worst financial crisis since the Great Depression. To many it seemed like the final nail in the coffin of American manufacturing. In fact, between 2000 and 2009, 5.8 million factory jobs disappeared.

By 2010, the manufacturing dominance America had relied on since the late 1800s was officially over; that year China supplanted the U.S. as the world’s largest manufacturing nation in terms of output, producing goods worth $1.92 trillion compared to America’s $1.86 trillion, according to United Nations data.

Yet in the years since the financial crisis, U.S. manufacturing has begun reinventing itself and rising again. There is indeed a renaissance in American manufacturing, economists say, and one that can still be a source of pride. But the sector looks far different from the past, offering fewer jobs and demanding higher skills than ever before.

Since 2010, the U.S. has regained a net 568,000 factory jobs. The Reshoring Initiative, an organization aiming to “return manufacturing home,” estimates that about 150 companies have “reshored,” or moved positions from overseas to the U.S. since 2010, contributing about 80,000 jobs or 15 percent of the total manufacturing jobs added.

“Jobs are coming back, and there is a renaissance,” said Claude Barfield, a scholar at American Enterprise Institute and former consultant to the Office of the U.S. Trade Representative. “There are jobs in widgets you would never have thought of before, but that’s not always translated into lots and lots of jobs.”

There are several reasons why more and more companies want to manufacture in the U.S. now. Energy costs have declined, and American labor productivity has increased. International transportation is still costly, and shortening a supply chain can save a company money while giving it more control over production. And wages in China and surrounding areas are starting to rise, along with political unrest in East Asia, Barfield said.

The expansion of the last four years is continuing. Durable goods manufacturing contributed more than any other sector to U.S. economic growth in 2012, according to the most recent data available from the Bureau of Economic Analysis. The durable goods output rose 9.1 percent in 2012, after increasing 6.8 percent in 2011. By comparison, the private services-producing sector grew 2.7 percent in 2012.

Manufacturing’s dollar-share of gross domestic product increased in 2012 for the third consecutive year to 12.5 percent, its highest share of GDP since 2007, though still less than half its contribution during the 1950s.

David A. Rosenberg, chief economist for Gluskin Sheff + Associates Inc., said Monday that the Chicago Purchasing Managers Index for January shows that “manufacturing activity in the industrialized heartland has been expanding for nine months in a row.”

Even though U.S. manufacturing has contracted sharply since the mid-20th century and prospects that it will ever return to its former size are virtually nil, American manufacturing remains one of the most productive in the world, contributing $1.87 trillion to the nation’s economy in 2012, according to the Bureau of Economic Analysis. Though China is producing slightly more output than the U.S, its production takes about 10 times more workers.

In other words, American factories are producing more than ever with fewer workers. And unlike the low-end goods with thin profit margins produced in China and other developing nations (toys, shoes, consumer electronics, etc.), the expensive and complicated goods many American factories now produce — medical equipment, computer chips, commercial and military jets and oil and gas equipment, to name a few — require specialized skills.

“The U.S. has always been a leader in manufacturing,” Veronique de Rugy, senior research fellow at the Mercatus Center of George Mason University, said. “While it’s seen a slight decline in the past few years, it’s clear that it’s going through a renaissance right now. It is still not only leading, but really gigantic.”

De Rugy is quick to clarify that no one can know how much U.S. manufacturing will grow or for how long. But she believes the shift in global manufacturing taking place, with developing countries producing low-end goods and developed countries producing high-end goods, will make U.S. manufacturers increasingly attractive to American and foreign companies.

“I think what a lot of companies are realizing is that it may not be that cheap to produce abroad,” she said.

Chad Moutray, chief economist for the National Association of Manufacturers, said he’s seeing increased investment in American manufacturing.

“We keep hearing about manufacturers that are increasing production here,” he said. “There’s been a lot of investment from companies using natural gas, plastic, fertilizers.”

A lot of that investment is coming from abroad, he added.

According to a national poll conducted in early January and released Monday by the Alliance for American Manufacturing, Americans cite manufacturing job loss as a top economic concern, above taxes, income inequality, education and retirement security.

The White House has launched two hubs for high-tech manufacturing in Raleigh, N.C., and Youngstown, Ohio, connecting businesses to universities that can help the U.S. in advanced technologies. In his State of the Union address, President Barack Obama promised to launch six more hubs this year.

Stuart Hoffman, chief economist of PNC Financial Services Group, explains in a late-January report that the manufacturing sector seems well-positioned to continue growing this year, with recovery in Europe driving exports, job and income gains driving consumer spending, and a budget agreement between Obama and Congress that has reduced policy uncertainty and will likely increase business investment in equipment. “Manufacturing will continue to expand in 2014,” Hoffman wrote.

Senate Bill Would Benefit Manufacturing

Sen. Sharon Brown and Kennewick Mayor Steve Young hope a proposed pilot program will help the Tri-Cities and other areas draw in more manufacturers.
Together, they came up with an idea that would allow manufacturers to reinvest some of what they would normally pay in business and occupation tax back into their business.

The pilot program laid out in Senate Bill 6515 would allow five new manufacturing facilities statewide to receive a tax credit for a portion of each of their construction costs. At least two would have to be in Eastern Washington.

The goal, Young said, is to address Washington’s lack of incentives for attracting businesses. And when it comes to bringing in new and expanding businesses, it’s a competition with the rest of the U.S.

Each company would get a tax credit equal to their state and local retail sales taxes on the construction. The credit will max out after a project reaches $10 million.

The project must be a new building or multiple new buildings at a single site that are used primarily for manufacturing.

Today at 5 p.m. is the cutoff for voting on bills in their house of origin. The bill for the pilot program has passed the Trade & Economic Development committee and the Senate Committee on Ways & Means but still needs to be taken to a floor vote.

Businesses would have the flexibility to invest some of their business and occupation tax back into the company to hire more employees or to expand, Brown, R-Kennewick, told the Trade & Economic Development committee.

“This is just smart economic development which results in jobs,” she said.

Young said the proposal came out of an idea to have zones where business could locate and be exempt from paying business and occupation taxes as long as they reinvest that money to expand their business.

For example, New York has created tax free zones where businesses can open and expand. According to the Start-Up NY initiative, those businesses can be free from business, corporate, state, local, sales and property taxes for a decade.

Young said Washington can’t go quite that far because the state does not have an income tax.

But “we needed to have something that gave us an incentive to get businesses in here.”

The Tri-Cities needs to stop relying on Hanford and work on creating the future of the local economy, Young said. Bringing in more manufacturing also means bringing in jobs that pay well enough to support a family.

As mayor, Young’s goal is to see 1,000 new jobs created in Kennewick’s urban growth area. The city is in the process of getting that area expanded by 1,263 acres south of Interstate 82 and west of Highway 395 specifically for industrial development.

Benton County commissioners have not voted on the proposal yet. And Young said the city still will need to put in infrastructure to the area. City officials are in discussions with the state Department of Transportation on adding an interchange to connect Hildebrand Boulevard across I-82.

The pilot program was supported by the Tri-City Development Council, the city of Kennewick and the Tri-City Regional Chamber of Commerce.

Carl Adrian, TRIDEC’s president and CEO, told the Trade & Economic Development committee that it represents a measured approach that is a good step forward to addressing what the state needs to encourage businesses to choose Washington communities.

— Kristi Pihl: 582-1512; kpihl@tricityherald.com


Foxconn To Begin Manufacturing TVs in U.S. Soon?

Foxconn looks likely to begin manufacturing large-screen TVs in the US soon
Last month the company’s chairman, Terry Gou, said the manufacturing giant was “studying the feasibility” of opening a display manufacturing plant in the US, but according to a report from The Wall Street Journal, Gou is now more bullish on the possibility. “We have many big projects in the US coming up,” says the chairman. “For instance, is it possible to make our 120-inch TVs in Taiwan and ship them over? It’s impossible. We have to make them on site.”

Foxconn already has a silent presence in the US; a partnership sees the Taiwanese company manufacture many of Vizio’s panels in Asia. Last month, Vizio and Foxconn demonstrated a 120-inch 4K TV at CES, and it appears that Foxconn’s chairman believes the only way that TV and similar models will make it to US stores will be if they’re made in the country.

A new TV plant in the US would represent a major investment in the country’s marginalized electronics manufacturing industry. Foxconn previously announced plans to open a $30 million facility in Pennsylvania that will employ 500. That plant is focused chiefly on research and development, an area that should be bolstered by a partnership with a further $10 million investment in research at Pittsburgh’s Carnegie Mellon University. Foxconn has also been meeting with Google recently to discuss a partnership in advanced manufacturing robotics, something that could be important for the creation of electronics in a country with relatively expensive labor when compared to China.


SOURCE:  AfterDawn

Foxconn Chairman Hopes to Step Back from Role

Foxconn Chairman Terry Gou spent the last morning of the Lunar New Year festival praying for a year of good business, holding incense sticks aloft in front of a spread of fruit and other offerings.
It was partly why the boss of the world’s largest electronics manufacturer was particularly contemplative on Friday, talking for three hours about his company’s future after whisking reporters to an impromptu press conference in a warehouse.

He outlined imminent plans for expanding manufacturing in the U.S. and producing 120-inch television sets. He also spoke about his hopes of passing on the baton to younger leaders by spinning off parts of his sprawling electronics empire. Gou said his aspirations have expanded beyond making gadgets to broader goals, such as assisting young entrepreneurs in Taiwan and creating higher-value jobs.

“I believe I can work for another decade, but even if I do, I want to change the type of work I am doing,” said the 63-year-old executive, adding that he wants to spend more time on medical research and public service, but has no plans to retire.

“I am trying to decrease the influence of Terry Gou at Foxconn.”

As proof, Gou asked different department heads — all clad like Gou in dark blue, Foxconn jackets — to speak in turn, although he frequently chimed in.

It was an unusual press event by any standards — held in an unheated warehouse with corrugated metal walls that housed the company’s annual internal science fair of sorts, where different departments showcased their best gadgets. These included a smart motorcycle that sends driving data to the cloud, and a wireless smartphone charger, both of which will be launched in Taiwan within months by Foxconn’s clients, executives of those departments said.

The display of cutting-edge technology hidden in a shabby warehouse is fitting for Foxconn — a company still largely known as a low-margin factory, but which harbors far greater ambitions.

While still dependent on its business of making iPhones and other gadgets for other companies, Foxconn has been expanding aggressively into businesses ranging from telecom services to software.

The company is also increasingly focused on building highly automated factories based not in China, but in the backyard of Foxconn’s customers.

“We are building factories in the U.S., in Indonesia, because we want to cater to customers there,” Gou said.

Gou said a two-hour conversation last November with a representative of U.S. investment promotion organization SelectUSA had spurred his interest in investing in the U.S. beyond the plant in Harrisburg, Pa., that has already been announced.

“We have many big projects in the U.S. coming up,” said Gou. “For instance, is it possible to make our 120-inch TVs in Taiwan and ship them over? It’s impossible. We have to make them on site.”

Gou has previously said the company was studying the feasibility of building an advanced large-screen panel factory in the U.S. Foxconn will begin mass-producing 120-inch TVs for Vizio in the fourth quarter, Gou said, although he did not specify where they would be produced.

Gou also said that he believed a strong manufacturing sector was a crucial underpinning for a country’s economy.

“Why is the U.S.’s middle class shrinking?” Gou asked. “It is because the manufacturing sector has left…I can’t agree with any economists who say that a bigger share of the service sector is always better.”

Gou also said the company is looking to hire 15,000 new engineers in Taiwan this year. “The problem is we can’t find so many,” he said.

Getting Back To Work

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World’s largest retailer shoots for success where government is failing.

Now here’s an economic stimulus plan America can get behind.
Wal-Mart Stores Inc. has pledged to buy $250 billion in American made-products during the next 10 years. The company is promoting the initiative in a series of ads broadcast during the Winter Olympics that featured narration from celebrity pitchman Mike Rowe, best known as host of the cable-TV show Dirty Jobs.

Unlike unsuccessful government attempts to stimulate the economy through pet projects, the Wal-Mart initiative has the potential to lift a wide variety of U.S. manufacturers through its massive global distribution network. The Boston Consulting Group predicts the $250 billion investment will create 1 million jobs.

In an era when there are as many disincentives to work than incentives, the ad’s pro-production narratives are uplifting.

“At one time, I made things,” the voice of Rowe says during the “I Am a Factory” ad that starts with the image of a closed manufacturing site, complete with a padlocked gate. “I was mighty and then one day, the gears stopped turning.

“But I am still here, and I believe I will rise again. We will build things, and build families, and build dreams. It’s time to get back to what America does best.”

The ad then closes out with the sponsor’s message: “Over the next 10 years, we’re putting $250 billion to work to help create new manufacturing jobs in America.” And that’s followed by Rowe saying, “Because work is a beautiful thing.”

It’s an encouraging sign that the world’s largest retailer is making such an enormous investment in the world’s largest economy, which, until overtaken by China in 2010, also boasted the world’s largest manufacturing sector.

Perhaps America could reclaim that title if more companies followed Wal-Mart’s lead and the government made it less onerous to make products on our own soil.

We simply cannot get by with a service-based economy alone. It’s Economics 101: A country that produces little of what it consumes eventually will lack the wealth to consume anything. As the saying goes, we all can’t press one another’s pants for a living.

Some of us actually need to make the pants.

Bill Encourages US-Made Flags For Veterans' Graves

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Local governments in Michigan could soon be restricted from buying American flags made outside the U.S. for veterans’ graves.

LANSING (AP) — Local governments in Michigan could soon be restricted from buying American flags made outside the U.S. for veterans’ graves.
The state Senate on Tuesday is expected to give final approval to legislation requiring counties, cities, townships and villages to buy American-made U.S. flags if they are competitively priced and of comparable quality to U.S. flags made in foreign countries.

Michigan now requires local governments to furnish a U.S. flag and holder for graves of local veterans upon the request of a veterans’ organization or five voters.

The bill requires local governments to post on their website that they bought foreign-made flags and flag holders because competitively priced and comparable-quality products made in the U.S. weren’t available.

Local governments not in compliance could have to pay up to $500 in fines.


SOURCE:  Associated Press

8 Star Automobiles Made at American UAW Plants

After a contentious battle pitting the United Auto Workers (UAW) against Republican politicians and party operatives in Tennessee, workers at a Volkswagen plant in Chattanooga voted against unionizing 712 to 626. That kept the UAW from entering a foreign automaker’s U.S. plant for the first time in the South. Opponents of the plant’s unionization ranged from the Republican Senator of Tennessee to Grover Norquist, whose billboards suggested the UAW could bankrupt the area.
Showing the long-defunct Packard Plant that closed in the 1950s, one of the Norquist billboards read, “Detroit. Brought to you by the UAW,” USA Today reports.

That’s a great deal of venom directed the UAW’s way. A glance at the award-winning automobiles produced at UAW plants in the U.S. tells quite another story. From sports cars that pace the auto industry to compacts that sell more than any other model on the planet, union plants have countless feathers in their caps. Here are eight world-class cars and trucks made at America’s UAW plants.
1. Ford Fusion

The slick-looking Ford Fusion injected a considerable dose of style into the midsize segment known for its blandness. U.S. auto consumers responded to the new Fusion in kind, making it No. 11 in the list of top-selling vehicles of 2013. In fact, the Fusion’s 27 percent gain over its prior year sales was the biggest boost of any automobile in the top 15.

Good news about the Fusion became great news for Detroit when Ford announced it was bringing production of the car to its Flat Rock, Michigan, plant in August 2013. UAW officials joined Ford corporate officers in celebrating the arrival of the Fusion. As Volkswagen learned from its entirely unionized German plants, the road to automotive success is often paved with cooperation between workforce and management. In bringing production of its world-class car back to Michigan, Ford clearly agrees.
2. 2014 Chevy Corvette Stingray

GM’s top-shelf sports car is cleaning up automotive awards. Fresh off its win as North American Car of the Year, there appears to be nothing capable of stopping it. The new iteration of the sports car legend improves upon both the horsepower and fuel efficiency of the previous model. How did Chevy pull off that feat? It’s one triumph of engineering that has industry observers suggesting Detroit is in the midst of a true revival.

UAW workers at the GM plant in Bowling Green, Kentucky, assemble the Corvette, where enthusiasts can tour the facilities. There may be no better example of craftsmanship on the auto market today.
3. Jeep Grand Cherokee

Jeep may be part of Chrysler, which is part of Italian automaker Fiat, but the Jefferson North Assembly Plant where UAW Locals 7, 412, and 889 make the 2014 Grand Cherokee is pure Detroit. In August 2013, the plant celebrated the completion of its five-millionth vehicle — a Billet Silver 2014 Jeep Grand Cherokee.

Consumers are on board, too. The Grand Cherokee took twenty-first place among all vehicles sold in the U.S. in 2013 while winning Most Loved SUV in America from Strategic Vision. Critics agree as well. Autobytel.com named the Grand Cherokee 2014 SUV of the Year.
4. Mitsubishi Outlander Sport 

The one foreign-branded car on this list belongs to Japan’s Mitsubishi Motors Corporation. UAW workers at the Mitsubishi Motors North America plant in Normal, Illinois, make the Outlander Sport SUV that won Top Safety Pick designation from the Insurance Institute for Highway Safety (or IIHS) for 2014. If those laurels weren’t enough, the Automotive Science Group (or ASG) honored the Outlander Sport for Best All-Around Performance in 2013.

If the evidence points to any conclusion, it’s that United Auto Workers have no problem racking up awards for their automobiles — whether working for the Detroit Three or a foreign car company at an Illinois plant.
5. Ford Focus

Talk about being on a roll. The Ford Focus is the best-selling car in China, which helped it become the best-selling car on earth for the second straight year when the stats were tallied in January 2014. The One Ford global approach is winning on many levels, but it all starts on the automaker’s home turf in Michigan.

UAW employees who assemble the Focus at the Wayne, Michigan, plant are the only Ford team that builds electric vehicles, plug-ins, hybrids, and old-fashioned gas-powered automobiles in the same facility. Milestone for 2013: Ford sold well over one million Focus models across the globe on the year.
6. Cadillac CTS

The 2014 Motor Trend Car of the Year is — you guessed it — union-made at the GM Lansing Grand River plant. UAW Local 652 members assembled their millionth vehicle at the Lansing, Michigan, plant in 2013. Fittingly, it was the same 2014 Cadillac CTS that Motor Trend said took the fight to the top German luxury cars and won. Is it a coincidence that these elite vehicles are all union-made in the U.S. and Germany?

Perhaps, but the union crew will get a new task in the coming months when the 2015 Chevy Camaro is assigned to Lansing Grand River. In other words, the good times will continue to roll at this facility for years to come.
7. SRT Viper

UAW members don’t shy away from “supercars,” either. At the Conner Avenue Assembly Plant in old Detroit, the union crews put together the blazing SRT Viper, a monster that houses an 8.4-liter V10 engine capable of producing 640 horsepower on 600 lb-ft of torque. Clear a lane.

In fact, the SRT
Viper is so lethal that
dealers were reportedly afraid to let test drivers behind the wheel of the Viper. Specimen of such a high level of style and performance are rare anywhere. In Detroit, only union hands make them run.

8. Ford Mustang

Ford is starting to crank out high volumes of its 2015 Mustang in anticipation of a warm reception to the stud pony car. As much a symbol of America as any automobile in history, the muscle-bound Mustang retains its brawn while maintaining much of its aggressive look.

Tasked with producing the new version of the iconic Mustang is the crew at the Flat Rock Assembly Plant, where production moved in 2004. In April 2013 UAW teams assembled the one-millionth Mustang in Ford’s history. Judging by the enthusiasm for the 2015 model, they can expect to be making many more muscle cars in the years to come.

Honorable Mentions on this list go to the Ford F-150, Chevy Impala, Cadillac ATS, and Ford Escape — just a few more of the winning brands union members produce.

Why ‘Made In The USA’ Is Making A Comeback

As kids in a boisterous playgroup click together the brightly colored interlocking plastic rods and connectors to assemble a toy based on Angry Birds, they may not give much thought to where the pieces came from.

But those bright K’NEX toys are trendsetters. Like most plastic toys sold in the United States, K’NEX building sets were made in China. But in 2009 the company began on-shoring much of its manufacturing and kit assembly to the eastern Pennsylvania region.

K’NEX, part of the Rodon Group, a maker of close-tolerance injection molded plastics, is one of the many companies returning manufacturing operations to the U.S. for one simple reason: it makes sense.

In fact, more than half of U.S.-based manufacturing executives at companies with sales more than $1 billion plan re-shore production to the U.S. from China or are actively considering it, according to a 2013 survey by The Boston Consulting Group.

Caterpillar, Ford, NCR and Whirlpool, to name only a few, have brought manufacturing back from over seas, and even Frisbee molding from Wham-O has left Mexico for the U.S. Walmart has committed to stocking $50 billion of domestically sourced products in the next 10 years.

Apple has contracted with a Flextronics America plant in Texas to assemble its new Mac Pro computer, using domestically sourced parts. Gorilla Glass, found in the iPhone display, comes from a small-town factory in Kentucky.

Rising wage rates in China and higher shipping rates are partly behind the on-shoring moves, as are lower U.S. energy prices. But closing the gap between the local market and U.S.-based engineering and marketing staff also pays off.

When GE brought back production of its hybrid water heater to Appliance Park in Louisville, Ky., it also re-designed the product. The company cut 20% of the parts and 25% of materials costs and sells the product for $300 less than the version made in China. Now the shipping time from factory to distribution center is 30 minutes instead of a month.

In the past five years, K’NEX moved 95% of its toy production back to Hatfield, Pa., and uses two nearby plants to print packaging and assemble the components into kits.

Before, the company made the rods, connectors, gears, wheels and other components in the Pennsylvania plant, then shipped them to China for finishing and packaging. The round-trip time was about three months. That lag made it impossible for the company to react to short-term market shifts, such as booming popularity of a licensed product.

With a long supply chain K’NEX had to make bets on which property would be hot six months or more ahead of the holiday shopping season, says CEO Michael Areten.

Building a domestic supply chain gives the company a competitive advantage.

“We got a call from a retailer a few weeks before Christmas that they had shelf space to fill, and I told them we’ll make the products this week and fill the shelves next week,” Araten says. “You can’t do that if you’re bringing it in from Asia.”


SOURCE:  Forbes

The Real State Of The Union For Workers

WASHINGTON — “The state of our union is strong,” President Obama will tell the country tonight, echoing a sentiment shared by nearly every executive before him. But just how strong is it for the country’s working people, particularly those on the lower end of the income scale?
The number of workers living in poverty exploded during the Great Recession and its aftermath, as people were hobbled by part-time work, temporary employment and the disproportionate growth of low-wage jobs. Most workers have endured at least a decade of wage stagnation, with their pay being well outstripped by corporate profits. A McDonald’s executive may now earn $8.75 million a year, but a McDonald’s worker still earns $8.25 an hour.

Below are just some of the wages and working conditions faced by tens of millions of workers in the U.S. — and how those conditions are determined in part by policy set in Washington.

Warehouse Workers
Warehouse work is the hidden engine of the U.S. retail sector, but many of the so-called “lumpers” who load trucks bound for major retailers earn poverty wages on a contingent basis. The companies whose products are being moved prefer to outsource the warehouse responsibilities to third parties, which in turn outsource the work to other third parties. While it saves the companies plenty of money, the byzantine contracting arrangements tend to blur the lines of corporate accountability, leading to widespread allegations of wage theft and other abuses by temp firms at the bottom of the contract chain. As one expert put it to The Huffington Post, “All of these companies, wherever they possibly can, they want to create a workforce that doesn’t work for them.”

Dollar Store Employees
Dollar stores — Dollar General, Dollar Tree and Family Dollar — are one of the fastest-growing sectors of the retail economy. By one measure, a new dollar store is opening every six hours in the United States. But much of that growth, as HuffPost reported, is underwritten by dubious labor practices by the big chains that collectively employ over 100,000 people. Even though managers spend their days doing grunt work — like unloading trucks and stockings shelves — their designation as “managers” excludes them from basic protections in federal labor law, like a guaranteed minimum wage and time-and-a-half for overtime. Some of them work so hard physically that they get hurt, but at the end of the day, they don’t earn much more than the workers they oversee. Managers throughout the country are now suing the chains over these practices.

Meatpackers
Working on a poultry processing line is a dangerous and low-paying job, full of repetitive motion and muscle pain. A recent government study found that four in ten workers at one chicken plant in South Carolina showed signs of carpal tunnel syndrome, the painful hand-and-wrist condition. Despite such findings, federal regulators are now considering a proposal to raise the maximum line speed even higher — a move that has the wide backing of the poultry industry. One poultry worker told HuffPost that the men and women who eviscerate and debone chicken carcasses can barely keep up at current speeds. Faster line speeds, he said, were nearly unimaginable: “It’s a job where you don’t get any relief.”

Repo Agents
While auto repossession has always been difficult and dangerous work, big banks have recently found new ways to make it low-paying as well. The lenders who underwrite auto loans have recently pushed auto repossession agents into working on a “contingency” basis — meaning if they don’t find the car, they don’t get paid a dime. Not only has that squeezed agents’ wages, it’s also encouraged them to put their lives and others’ in danger by making risky repossessions. HuffPost reported the story of one agent working on contingency who ran over a car owner during an altercation. As the owner of one repo outfit said, the lenders’ stinginess is “turning good people into bad, making them do things they wouldn’t normally do.”

Fast-Food Workers
The quintessential image of a fast-food worker is a high school kid looking for spare cash at night and on the weekends. In reality, many fast-food workers are now grownups with families to support; 40 percent are now 25 years or older, according to the National Employment Law Project. But despite the growing age and experience of its workforce, the fast-food industry is about as low-paying as its ever been when adjusted for inflation, with a median wage under $9. HuffPost has interviewed fast-food workers whose most recent raises were granted not by their employers but by the U.S. Congress, when the federal minimum wage was last hiked in 2009. For minimum wage workers in states that don’t adjust the wage floor each year for inflation — and that would be the majority of states, including pricy New York — the wait between raises can be years.

Taxi and Sedan Drivers
A lot of sedan and taxi drivers aren’t technically employed by the companies they work for. Like other folks in the transport industry, they’re instead classified as “independent contractors” working on their own. Many of them aren’t independent in any real sense. The companies set the terms of employment — where the drivers work, when they must be available, and even what they wear while on the job. But the companies reap major benefits by classifying the workers as independent — like not having to pay workers’ comp or unemployment taxes, and not having to worry about their drivers unionizing. Since they’re technically not employees, the drivers can’t expect health coverage or other basic workplace benefits. In some cases, they don’t even get to keep the “gratuities” that the companies charge their clients.

Walmart Workers
Earlier this month, officials at the National Labor Relations Board formally accused the world’s largest private-sector employer of retaliating against workers who spoke out about working conditions. The general counsel for the board charged Walmart with violating the rights of more than 60 workers in 14 states surrounding the Black Friday strikes that became
national news for the r
etailer.

Coal Miners Who Take A Stand
Coal mining remains one of the most dangerous jobs in the world. Even though U.S. miners have strong whistleblower protections written into federal law, those who speak out about mine hazards or refuse to do risky work still have a way of getting demoted or fired. The official investigations into the Upper Big Branch mining disaster, which killed 29 people, showed that miners who dared question the dubious orders coming from management were threatened with their jobs. Such coercion can be routine in some mines. Charles Scott Howard, a Kentucky miner, has been reinstated on the job at least three times after being retaliated against for his whistleblowing on safety issues. Reuben Shemwell, another Kentucky miner, was hit with a lawsuit by his own company merely for filing a whistleblower complaint with the feds.

Restaurant Workers Who Try To Unionize
With few exceptions, the restaurant industry is a union-free world. Chains and franchisees can usually rely on the work’s high turnover rate to keep unions naturally at bay, but in recent cases, owners have taken a much more proactive approach. A Jimmy John’s sandwich shop franchisee in Minnesota fired pro-union workers during a heated unionization battle. Similarly, a major Panera franchisee in Michigan has declined to accept the successful union election of its bakers. The federal labor board has issued a raft of union-busting charges against the company, but the bakers still don’t have a contract. “I came into this thinking we had the right to bargain collectively,” one baker told HuffPost.

Housekeepers
At a lot of U.S. hotels, the men and women who clean guests’ rooms are no longer even employed by the hotels. Instead, they work for temp staffing agencies on a day-to-day basis. This arrangement has obvious benefits for large hotel chains; by outsourcing the work, they don’t have to worry about offering a living wage, health care coverage or other benefits to the housekeepers who clean their hotels. But for workers, the outsourcing comes at a steep cost. Previously in-house workers can be rehired through the temp firms at substantially lower wages, and many of them enjoy no job stability whatsoever as temporary employees. “It’s everywhere now,” an Indianapolis janitor said of the hotel outsourcing. “The housekeepers, the restaurant, the stewards, laundry, room service …”

Home Care Workers
The roughly 2 million home care workers who clean, cook and care for the elderly and disabled earn some of the lowest wages in the health care sector. Part of their low earnings can be traced directly to federal law. Decades ago, Congress carved these workers out of basic labor protections through the so-called “companionship exemption,” which equated home health workers with casual babysitters. As a result, these workers still don’t have the minimum wage and overtime protections enjoyed by other hourly workers in the U.S. That will finally change in 2015, courtesy of a new rule issued by Obama’s Labor Department. After being excluded for years, workers who log as much as 80 hours a week may actually get some overtime pay.


SOURCE:  Huffington Post

Wanted: A Job-Creating Manufacturing Policy

Faced with a sluggish economy and a Congress expected to be notably unproductive, President Obama is calling for “a year of action.” Where he can, he says, he’ll go it alone. And thus we have the manufacturing institute that his administration awarded earlier this month to a consortium in Raleigh, N.C. It’s the second in a planned network of innovation hubs backed by public and private funding — all part of the president’s plan to bolster our manufacturing sector, the historic home for America’s middle-class jobs.
“I don’t want the next big job-creating discovery, the research and technology to be in Germany or China or Japan. I want it to be right here in the United States of America,” said the president, unveiling a facility that will develop advanced semiconductor technology. He’s right: The government should leverage its resources to encourage industrial research, which is sometimes difficult for private firms, particularly smaller ones, to do on their own. Although we have a long way to go to catch up with Japan, Germany, and other advanced economies, this nascent network will pay off in the long run.

But the rest of the president’s manufacturing plan could still use some work. Most of what the administration would call its manufacturing strategy is just creative data interpretation.

Take a look at Exhibit A: our growth in exports. Much of this is due to America’s boom in energy production and is benchmarked by a historic export low during the Great Recession. The president is fond of touting this figure, since it implies a healthy, productive economy. But imports in manufactured goods have grown much faster, particularly from China, resulting in a bilateral trade deficit that sets records every year.

Now consider Exhibit B: manufacturing employment. Obama told the crowd in North Carolina, “Our manufacturers have added over the last four years more than 550,000 new jobs, including almost 80,000 manufacturing jobs in the last five months alone.” But that selective reading of the numbers doesn’t acknowledge that the country lost roughly 5 million factory jobs since the year 2000, and has seen only a net increase of 77,000 since January 2013.

Job growth in manufacturing is also way off the target that the president himself set. During his re-election campaign, he pledged to create 1 million new manufacturing jobs by the end of his second term. That will require more than 25,000 new jobs a month until 2017 if he’s to meet his own expectations, and getting there will take more than an upward swing in the business cycle.

So imagine if, during Tuesday’s State of the Union address, the president unveiled a new, job-creating manufacturing strategy for America. What should the strategy include?

First: Guarantee enough new infrastructure investment to repair and upgrade our roads, bridges, ports, and energy grid. Doing so wouldn’t be politically impossible. The spending bill just passed by Congress includes a sizable increase for water infrastructure investment.

Second: Ensure the government is spending our tax dollars on American-made steel, iron, and manufactured goods instead of outsourcing those projects to China. In short, buy American.

Third: Increase tax incentives for reshoring (the return of jobs from overseas), and only consider reforming corporate taxes in a way that retains and expands incentives for domestic research, hiring, production, and capital expenses.

Fourth: Build clear career pathways for young people and the long-term unemployed to ensure a dynamic workforce for American manufacturing.

Fifth: Set a trade agenda that emphasizes reciprocity and balance, starting with China. We should aim to halve our record trade deficit with Beijing, and we could do so in part by passing bipartisan legislation to deter currency manipulation.

If President Obama took even half of these steps, we’d have the basis for a manufacturing policy that helps to expand our middle class.

If 2014 is to truly be a year of action, we need more than half-measures. We need more good-paying manufacturing jobs. Will the president commit to supporting them in his State of the Union address? 

Scott Paul is president of the Alliance for American Manufacturing.

President Raises Minimum Wage For Federal Contractors

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A construction worker pauses at the Second Avenue Subway project site in New York, Jan. 10, 2014. SPENCER PLATT/GETTY
The president will raise the minimum wage for federal contractors to $10.10, NBC News has learned.
He will announce the executive order during Tuesday’s State of the Union address.

This means that new contracts for construction workers, the people who wash dishes on military bases, and janitors who would have made less than $10.10 will be hired at a higher rate.

“A higher minimum wage for federal contract workers will provide good value for the federal government and hence good value for the taxpayer,” a release announcing the move said. “Boosting wages will lower turnover and increase morale, and will lead to higher productivity overall.”

It is the latest executive order the president has used to accomplish some of his goals without the approval of Congress; prominent Republicans have criticized the president for what Sen. Marco Rubio of Florida called an abuse of power.

When a White House spokesman said that more executive orders were in the works for 2014,Kentucky Republican Sen. Rand Paul retorted that “it sounds vaguely like a threat.”

“I think it also has a certain amount of arrogance in the sense that one of the fundamental principles of our country were the checks and balances,” Paul said on CNN.

But the release argues that the president is “using his executive authority to lead by example, and will continue to work with Congress to finish the job for all Americans by passing the Harkin-Miller bill.”

The existing minimum wage bills, proposed by Sen. Tom Harkin and Rep. George Miller in both chambers, would raise the minimum wage to $10.10 for all workers in $0.95 increments and tie it to inflation. It would raise the minimum wage for tipped workers as well.

Washington Post poll out on Monday found that a slim majority, 52% of Americans, approve of the president’s Congress-bypassing executive orders.  (The sampling error is +/- 3.5 points.)

Jay Carney Says Obama Will 'Bypass Congress' In 2014

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White House Press Secretary Jay Carney predicted that President Barack Obama will “bypass Congress” when necessary in 2014, taking unilateral executive action to carry out his agenda.
Speaking on ABC’s “This Week” ahead of Tuesday’s State of the Union address, Carney was asked how the president could get things done this year, when Republicans in Congress will no doubt be just as resistant to his policies as they have been in the past.

“I think what we saw last year in 2013 was a Washington that did not deliver for the American people,” Carney said. “The president sees this as the year of action, to work with Congress where he can, and to bypass Congress where necessary.”

Bypassing Congress will likely mean taking executive action in certain areas. In the past, Obama has halted the deportations of certain young, undocumented immigrants and ordered modest changes to the federal background check system for gun purchases, among other actions. Progressives are currently pushing the president to raise the minimum wage for federal contractors.

“We’re not just going to be waiting for legislation in order to make sure that we’re providing Americans the kind of help they need. I’ve got a pen and I’ve got a phone,” Obama said at a Jan. 14 cabinet meeting.

Carney did not go into specifics on what the president might do. But he expressed hope that further executive action will not be necessary on one key part of the president’s second-term agenda.

“We’re actually optimistic that 2014 will be the year Congress delivers to the president’s desk a bipartisan, comprehensive immigration reform,” he said.

Separately, Carney was asked whether passing Obamacare would have been worth it if the Democrats lose control of the Senate in the 2014 elections. “It is absolutely worth it, no matter what happens politically,” Carney said.

Watch full clip below.


SOURCE:  Huffington Post

Congressman Thompson's Provision for American Flags Passes

WASHINGTON, D.C. — Congressman Mike Thompson’s (D-St. Helena) bipartisan provision requiring every American flag purchased by the Department of Defense (DOD) to be 100-percent manufactured in the United States, from articles, materials, or supplies that are 100-percent of grown, produced or manufactured in the United States, was passed by the House of Representatives and Senate, and will be signed into law.   
“This provision will make sure every American Flag DOD buys is made in America, by American workers with American products,” Thompson said. “I am proud to have worked to pass this law so that our men and women in uniform never have to fight under a U.S. flag made overseas, and so that our Defense Department never again spends American tax dollars on a U.S. flag made overseas.” 

Thompson’s provision applies the Berry Amendment to the American Flag. The Berry Amendment, originally passed in 1941, prohibits DOD funds from being used to acquire food, clothing, military uniforms, fabrics, stainless steel and hand or measuring tools that are not grown or produced in the United States, except in rare exceptions. Thompson’s provision applies the same rules for the DOD’s acquisition of American Flags, which previously were not listed as a covered item. 

Precedent already exists for such a provision. The Department of Veterans Affairs is required to only purchase U.S.-made American Flags for servicemembers’ funerals. 

Thompson’s provision passed as part of H.R. 3547, the Fiscal Year 2014 omnibus appropriations bill.

Thompson represents California’s 5th Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma counties. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. He is also a member of the fiscally conservative Blue Dog Coalition and chairs the bipartisan, bicameral Congressional Wine Caucus.


SOURCE:  Record-Bee