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Trump Re-Opens NAFTA, Activists Fear It Is The TPP In Disguise

Like a steady drumbeat, candidate for President, Donald Trump, said he would “renegotiate NAFTA,” the North American Free Trade Agreement that has cost millions of American jobs.   As talks begin this week to make changes to NAFTA some fear that this “new NAFTA” will just be another “grab bag of corporate handouts.”

“NAFTA was a radical experiment,” said Lori Wallach, Director of Public Citizen’s Global Trade Watch. “NAFTA subsidized offshoring, making it easier for corporations to move American jobs overseas.”

Working people across the country blamed NAFTA for destroying our manufacturing base. “910,000 jobs have been lost due to NAFTA and we have seen our trade surplus with Canada and Mexico shift to a trade deficit,” Wallach added.

“NAFTA went far beyond what we think of as trade,” said Ben Beachy of the Sierra Club. “NAFTA is a grab bag of corporate handouts.”

Beachy explained how this new NAFTA negotiations are being conducted in the same way the Trans-Pacific Partnership was conducted, in complete secret by corporations. There are no representatives for labor or the environment allowed to be a part of the negotiations.

The Sierra Club has been fighting the harmful pollution policies laid out in NAFTA. Due to weak environmental protections in Mexico, NAFTA allowed corporations to export their hazardous waste. The number of toxic waste facilities in Mexico, owned by foreign corporations, grew by over 40% in the last 25 years.

“Underweight babies are being born with elevated levels of lead in their blood because of led battery exports,” said Beachy.

The Sierra Club also opposed the Trans-Pacific Partnership’s poor environmental protections and fears that Trump’s new NAFTA will fail to raise environmental protections.

When a country does try to fight back against these corporations they take their case to the Investor-State Dispute Settlement (ISDS). The ISDS has been incorporated into more than 3,000 trade agreements worldwide 50 of which the United States is included in.

The ISDS is a corporate court, where three corporate lawyers decide the outcome of the dispute. Murshed Zaheed, the Executive Director of Credo Mobile said, “The ISDS puts corporations over people.”

If the corporation wins their case in the ISDS, the taxpayers of the State (i.e. the country being challenged) are forced to pay for the “damages.” The United States alone has already paid out over $400 million in ISDS disputes.

“The ISDS circumvents American sovereignty,” said Rep Keith Ellison (D-MN). He explained who Phillip Reynolds won their ISDS dispute with the country of Uruguay over the labeling of their cigarettes. Uruguay wanted to put a warning label on all cigarette packages, however they were shut down by the ISDS.

(Watch this video from Credo Mobile featuring Senator Elizabeth Warren, explain how the ISDS works in her opposition to the TPP.)

 

The prior history of NAFTA is well known. It crushed our manufacturing and cost millions of people their jobs. But every story has two sides.

Erika Andiola, an immigration activist and a director in Our Revolution, talked about how NAFTA “decimated the Mexican economy” which forced a massive Mexican migration

“Local farmers lost their farms due to the influx of cheap American corn,” Andiola said. After they lost their farms, these farmers were forced to move into the cities to find work. “The economy shifted as local shops and markets were replaced with Wal-Mart and Costco.”

Ultimately, when they could not find work in Mexico, some headed north to the United States in search of work.

Andiola added, “We must talk to our members of Congress to ensure that NAFTA will help American workers but raise the living standards for the workers in ALL countries.“

Yesterday, the Trump administration began the first round on negotiation on NAFTA. Beachy said, “Trump wants to begin by copying the Labor and Environmental protections from the TPP into the new NAFTA.”

We beat the Trans-Pacific Partnership and if we use our collective voices we can make our demands for a better NAFTA heard.

“As renegotiations begin today, there is an incredible opportunity to replace this fundamentally flawed trade deal with new rules that work for working families,” said AFL-CIO President, Richard Trumka in a statement. “But how we do it matters. The administration can choose to use this opportunity to benefit working families, or it can further rig the rules to favor corporations and CEOs.”

Rep Ellison said “we must demand”:

  • No ISDS
  • Labor standards are lifted instead of dropped.
  • Environmental standards are lifted instead of dropped.
  • Food standards are lifted instead of dropped.

“We are setting the bar high. We will only accept a deal that is renegotiated the right way. That means having a transparent process in which working families have a seat at the table, and ensuring that our freedom to stand together is protected and that all of us can receive a fair return on our hard work. We need to replace benefits for the few with a fair deal that raises wages, stops outsourcing and provides a path to the middle class, no matter where working families live or what their background is. America’s working people have earned this. We deserve nothing less,” Trumka concluded.


This story compiled from speeches by Rep Keith Ellison, Lori Wallach, Murshed Zaheed, Ben Beachy, and Erika Andiola at Netroots Nation 2017.

Full video of panel here or below.

Celebrate Labor At The 33rd Bread and Roses Heritage Festival

The 33rd Bread and Roses Heritage Festival takes place on Labor Day, September 4, 11:30 a.m. to 6:00 p.m., on the Common in Lawrence, MA, a free, one-day ‘open air’ celebration for the whole family. It is the only Labor Day festival on the East Coast and commemorates the important contributions the Lawrence strikers of 1912 made to the history of the labor movement.

This year, we have again great participation by Labor:

Opening the Festival, at 11:30 a.m.: Ceremony at the Strikers’ Monument across from
City Hall, sponsored by the Strikers’ Monument Committee

Labor representatives at Lawrence History Live, our popular speakers’ tent, presenting on current union actions (Rand Wilson, Pablo Ruiz), Steve Thornton and Louise Sandberg  speaking on Labor and WW I, Corey Dolgon on his new book, “Kill It To Save It,” Mark Chester on his Photography of Massachusetts Immigrants, Riahl O’Malley on United for a Fair Economy,   Steve Kellerman on the hostory of the class struggle in the U.S, and Karen Lane on the Barre, VT, Labor Hall then and now

2015 Bread and Puppet Theater

A Community Corner with Soap Box, in the tradition of the free speech activism of the Wobblies and Elizabeth Gurley Flynn. Everyone is invited to address Festival visitors and our Headline Performers:

Bread and Puppet Theater   –   famed progressive theater for young and old http://breadandpuppet.org

Tigerman WOAH – Rock and Roll from Lynn, with working-class roots http://tigermanwoah.com

Catie Curtis – Vivid, compelling and addictive melodies and energy of nationally known singer-songwriter – her fimal show for the foreseeable future! http://catiecurtis.com

Angkor Dance Troupe – Bringing to life—and innovating—Cambodian performanc arts. Their 30th year! http://angkordance.org

Andre Veloz – Singer-songwriter, painter, and actress: la Batchatera transforming the genre . . . the “Dominican Blues” http://andreveloz.com

Also performing:

Ceschi – Progressive hip-hop spliced with elements of folk and indie rock from New Haven http://ceschimusic.com

Ubuntu –   Boston-based reggae/soul and world-fusion band http://ubuntugroove.com

Anthony Bernabel – Latin jazz by the renowned and admired Dominican saxophonist

and many more! 

Full Schedule available here.  

The popular Trolley Tours of historic Lawrence. –   Lots of children’s activities!

Join us!

breadandrosesheritage.org

Find us on Facebook: /BreadAndRosesFest/ and Twitter: @1912BreadRoses

IronWorker And Congressional Candidate Randy ‘IronStache’ Bryce Rallies The Crowd At Netroots Nation

This morning, Randy “IronStache” Bryce spoke to the progressive crowd at Netroots Nation. Netroots Nation is the largest gatherings of progressive Democrats in the country with over 3,000 attendees this year in Atlanta.

Bryce opened his remarks by saying, “I am here to repeal and replace Speaker Paul Ryan.”

With over twenty years of working as an IronWorker in Wisconsin, Bryce has always been an outspoken advocate for working families.  As the political director for the Ironworkers local 8 in Wisconsin, Bryce has been on the front lines in the attacks on working people from the Republican Legislature and the anti-worker Governor, Scott Walker.

After announcing his run for Congress, Bryce launched his first, powerful campaign video that has already surpassed over 500,000 views in just over a month.

Bryce told the audience at Netroots Nation, this campaign “is not about me, it is about all of you” and referred to the GOP in Washington as “Banana-Republicans” for their failure to hold town halls or speak to the people they claim to represent.

The people of Wisconsin do not seem to be happy with Speaker Ryan’s “repeal and replace” plan for healthcare and have made public calls for him to hold a town hall to hear them.

Slate magazine reported that Ryan is afraid to hold a town hall “due to the fear of protestors.”

In one early campaign appearance, Bryce called out Speaker Ryan for not holding “an in-district town hall for 600 days.”  Politifact Wisconsin corrected Bryce when they fact-checked his statement and found that “Ryan has gone more than 650 days without holding” a traditional town hall within the district.

Bryce made his position on healthcare completely clear by saying, “Medicare For All should be the number one priority for this country.”  Bryce praised his union supplied healthcare which helped he battle and ultimately beat cancer, but now will forever have a “pre-existing condition” that would block him from getting healthcare under Speaker Ryan’s new healthcare plan.

Lastly, Bryce talked about the recent bombing on a Muslim Mosque in Minnesota.  He called the bombers, “cowards” and “should be convicted of hate crimes.”

He also talked about how as an Ironworker he has build many walls, but if he was called to build Trump’s border wall, he would tell him to “stuff it! I will not going to build some stupid border wall.” Bryce said we should not be spending money on a border wall if we are not willing to spend the money to ensure that all Americans have healthcare.

You can find out more about Randy Bryce’s campaign to repeal and replace Paul Ryan from his website.

Leo W Gerard: Workers Need Better Trade Deals, Not More Talk

President Donald Trump, author of “The Art of the Deal,” said this week that China is giving American workers and companies a crummy one. He promised to do something about it.

This occurred within days of his Commerce Secretary, Wilbur Ross, demanding “fair, free and reciprocal” trade in an op-ed in the Wall Street Journal.

At the same time, Congressional Democrats offered a seven-point plan to give workers what they called “A Better Deal on Trade and Jobs.”

American workers want all of these proposals achieved. They’ve heard this stuff before and supported it then.  That includes ending tax breaks for corporations that offshore jobs – something that never happened. It includes the promise to confront China over its steel and aluminum overcapacity – a pledge followed by delay. Talk is cheap. Jobs are not. The factory anchoring a community’s tax base is not. America’s industrial strength in times of uncertainty is not. All the talk is useless unless workers get some action.

President Trump is expected to announce within days the launch of an investigation into China forcing American corporations to transfer technology to the Asian giant’s companies as a price of doing business there. The technology transfer boosts China’s goal of becoming the leading manufacturer within a decade in high-tech areas such as semiconductors, robots, and artificial intelligence. In addition to seizing American research and know-how, Beijing advantages its technology companies by granting them government cash.

This is the kind of unfair competition that Secretary Ross talks about in his Wall Street Journal op-ed.Under so-called free trade rules, governments aren’t supposed to subsidize industry or demand that foreign investors fork over research.

These kinds of violations, not just with China but with other trading partners as well, have occurred for decades now. And the upshot for American workers is lost jobs and stagnant wages.

More than 5 million American manufacturing jobs disappeared between 1997 and 2014. Most of these vanished, according to the Economic Policy Institute (EPI), because of growing U.S. trade deficits with countries like Mexico and China that had negotiated trade and investment deals with the United States.

The United States’ massive trade deficit with China alone accounted for 3.4 million jobs lost between 2001 and 2015, with 2.6 million of those in manufacturing, according to EPI research.

While offshoring manufacturing has often padded corporate profits, it has suppressed wages in the United States and in trading partner countries like Mexico. United Technologies (UT) is a good example.

UT moved to Mexico this year its Electronic Controls unit, which manufactures microprocessors for heating, ventilation and air conditioning (HVAC) equipment. UT did this even though its 700 American workers had produced consistent profits for UT at a factory in Huntington, Ind. UT also moved a big chunk of its profitable Carrier HVAC manufacturing from Indianapolis to Mexico this year. UT’s stock price rose, so the already-rich who have cash to invest, made out.

They did it on the backs of workers in the United States and Mexico, however. The move to Mexico rendered jobless more than 1,000 skilled American workers. Studies show that if they’re lucky enough to land new employment, the pay will be substantially less.

Mexican workers gained the jobs, but the pay they’re getting is little better than before NAFTA. More than half of Mexicans still live below the poverty line, a figure no different than before NAFTA. The New York Times cited this case: “For 10 years, Jorge Augustín Martínez has driven a forklift for Prolec, a joint venture with General Electric that makes transformers. A father of two, he earns about $100 for a six-day workweek.”

Mexican wages have remained stagnant for a decade.

In the United States, wages have been flat for longer – several decades.

This as corporate profits rise, the stock market skyrockets and CEO pay surges limitlessly.

Trade deals worked great for the already-rich, CEOs and corporations. They’ve crushed workers.

So it’s encouraging that both President Trump and the Democrats are talking about solutions.

The president is right. American corporations shouldn’t have to transfer technology to China to operate there. The United States doesn’t require that of Chinese companies manufacturing here. No such demand was made of Foxconn when it agreed to build a $10 billion factory in Wisconsin last week – though it is true that Wisconsin Republicans plan to force the state’s taxpayers to contribute $3 billion toward the plant, nearly a third of the total cost.

And the Democrats are right about every point in their “Better Deal” plan. Workers need an independent trade cop they can turn to for quick results to combat trade violations before they cost Americans jobs. Corporations like UT and Rexnord should be penalized when they offshore and when they seek government contracts. Corporations that restore jobs to the United States should be rewarded.

So do it. And don’t procrastinate like the administration is doing on its investigation of the national security threat posed to the United States by steel and aluminum overproduction in China. The report in that case originally promised for June 30 now has been indefinitely delayed. Each day’s wait means more American workers without jobs as illegally subsidized, grossly underpriced Chinese steel and aluminum floods the international market.

America’s highly skilled, dedicated steel and aluminum workers perform their jobs faithfully every day with the expectation that their government will enforce international trade regulations. They also expect their government to support their right to join together and collectively bargain for better wages and benefits. As right-wingers have eroded workers’ bargaining rights over the past half century, unions have declined, and with them, workers’ ability to secure raises. This is true in Mexico too, where there are virtually no legitimate, worker-run unions.

Timothy A. Wise, a research fellow at Tufts University, put it this way to the New York Times: “Mexico is seeing exactly the same phenomenon as in the United States. Workers have declining bargaining power on both sides of the border.”

To ensure there are no more crummy trade deals, workers must be at the table when these pacts are negotiated. To get better wages, workers in all the countries involved in these deals – from China to Mexico to the United States – must be able to form real, worker-controlled labor organizations to bargain with corporations.

Ten Years After Minneapolis Bridge Collage Progressive Warn About Trump’s Infrastructure Plan

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On 10 Year Anniversary of Minneapolis Mississippi River Bridge Collapse Tragedy, Progressives Warn ‘Trump’s Radical Infrastructure Privatization Plan Will Hurt American Consumers & Workers’

On the tenth anniversary of the Minneapolis Mississippi River Bridge collapse, which killed thirteen and injured dozens after the bridge’s central span gave way during rush hour traffic, Working Families Party National Director Dan Cantor released the following statement of the Millions of Jobs coalition:

“A decade ago this week, the nation watched in shock as a bridge crumbled in Minneapolis during rush hour traffic, killing and injuring dozens. This tragedy never should have happened in America. But today, our nation’s’ roads, highways and transportation infrastructure are deteriorating from lack of public investment. We can’t let it happen again.

“Democrats in Congress and the Millions of Jobs coalition believe we have the opportunity to put millions of Americans to work rebuilding bridges and roads and repairing our unsafe water systems — and also creating modern jobs for the 21st century by investing in clean energy and high-speed Internet.

“Trump wants to use this crisis as cover to sell off our our nation’s public infrastructure to Wall Street investors and foreign corporations, who would levy tolls that Americans would have to pay for generations to come. It’s a scam, not a real plan to rebuild. The difference between the progressive vision of job creation and Trump’s scam of jobless corporate handouts could very well  save innocent people from another tragedy like what happened on the the Mississippi River Bridge 10 years ago.

“The president’s radical privatization plan will hurt American consumers and workers, and we implore our elected officials to block Trump’s corporate giveaway of this country’s  infrastructure future.” 

Leo W Gerard: Don’t Dawdle on Economic and National Security

The future of the American steel and aluminum industries is not a matter for dithering.

Steel worker takes a sample from oven

Each mill and smelter that remains operating is too vital. Each is too crucial to the economic viability of a corporation, a community, and thousands of workers and their families. Each also is too essential to national security, which relies on American-produced metals for critical infrastructure, from bridge construction to the electrical grid, and for munitions, from fighter jets to bullet-proof vests.

There is no more time for waiting. International trade law must be enforced now. Throughout his campaign, Donald Trump pledged his support to workers and these industries. And he followed through by launching within three months of taking office as president special investigations into the effects of steel and aluminum imports on national security. Such inquiries may take as long as a year to conclude, but the administration expedited the process. Until it didn’t. Now steel and aluminum corporations, their communities and their workers are being told to wait. It’s a delay that could kill more American mills and smelters.

The nation lost nine aluminum smelters over the past six years, leaving only five in the entire country, and most of them are now operating at reduced levels. Beginning in January 2015, steel companies laid off 14,000 workers as they closed mills and sections of mills. For example, Allegheny Technologies shuttered a plant that made grain oriented electrical steel in 2016, leaving only one U.S. company, AK Steel, now producing this component critical to electricity transmission.

As mills and smelters disappear, the military is further restricted in its ability to secure domestically produced essential metals in time of crisis.

The primary culprit in this scary scenario is overcapacity and overproduction in China, which overwhelms the world market with illegally subsidized, grossly underpriced aluminum and steel.

China has promised repeatedly to solve this problem. On Thursday it pledged again, this time contending it wanted to work globally to deal with the issue of aluminum overcapacity – a problem Beijing created. Over the past six years, using massive government subsidies, China quickly ramped up capacity to become the largest aluminum producer in the world.

China can’t be trusted on this because it never keeps its promises. It has never cut its steelmaking capacity after announcing again and again that it would. In negotiations last week, Trump cabinet members could not even get a specific commitment out of China to do it. There’s no evidence China will stop overproducing steel or aluminum now. Waiting is useless. And destructive to American manufacturing.

The American steel and aluminum industries have fought back, filing and winning dozens of trade cases against imports of specific products. But the resulting tariffs and other penalties imposed by the U.S. Commerce Department and U.S. International Trade Commission (ITC) didn’t solve the problem. Instead of paying U.S. tariffs, China shipped its government-supported excess of these products to other countries, artificially suppressing world prices and warping what is supposed to be a free market.

Also, this traditional process for seeking relief from unfair trade takes too long. More than a year may elapse before companies and workers get a final decision. And that will be for just one product, like aluminum extrusions, aluminum foil, welded stainless steel pressure pipe or corrosion-resistant steel, to name a tiny number of cases from recent years.

That’s part of what made the special investigations into steel and aluminum imports so attractive. If the U.S. Commerce Department determined under Section 232 of the Trade Expansion Act of 1962 that imports of steel and aluminum jeopardized national security, then the president could impose penalties broadly to ensure the country could meet its own needs. The effort might also spur allies to join the United States in finally pressuring China sufficiently to actually reduce capacity.

Although Section 232 allows for nine months of investigation, after which the President would have three months to determine a remedy, the administration promised quick action when it announced the inquiries in April. The steel report was to be completed by June 30, with a speedy decision by the president after that.

That suggested the administration understood this was urgent.

But June 30 came and went. Now there’s an official delay. The administration told the Wall Street Journal that the steel investigation is on hold until after health care reform, tax changes and infrastructure spending are accomplished.  “We don’t want to do it at this moment,” the president said Tuesday of the steel case.

That’s devastating. Especially because steel imports have jumped 22 percent since Jan. 1, placing additional pressure on the American industry.

The delay occurs as efforts are made by a new company to reopen at least one potline at an aluminum smelter in New Madrid, Mo., that the now-bankrupt Noranda company idled last year. Postponing the Section 232 decision makes for uncertainty for these investors.

It also occurs as a Chinese company is trying to buy Aleris, an Ohio-based manufacturer that supplies aluminum for use in vital infrastructure and military applications. That Asian firm, China Zhongwang, is accused of dodging tariffs and is under civil and criminal investigation for possible smuggling, conspiracy and wire fraud by the Justice Department, Department of Homeland Security and Commerce Department.

Maybe the Aleris smelters would keep operating if China Zhongwang bought them, but at what risk to national security?

The delay occurs as companies that buy steel fear monger that tariffs or quotas would raise prices.

An expert, Stephen Koplan, chairman of the U.S. ITC under Presidents Bill Clinton and George W. Bush, says that’s hogwash. “Predictions of disaster were wrong 15 years ago when I chaired the ITC, and they are wrong again today,” he wrote in an op-ed in The Hill newspaper this week.

When President George W. Bush imposed tariffs and quotas on steel imports under Section 201 of the Trade Act of 1974, there was no price shock afterward, according to a study by the nonpartisan U.S. ITC.  Here is what Koplan, who also served as an attorney at the Small Business Administration, wrote:

“Downstream industries were not devastated by higher steel prices. Nor was the U.S. economy thrown into depression. The U.S. steel industry, however, earned a much-needed relief as the result of action taken by the president that allowed it to restructure and reinvest for the long term. In other words, the Section 201 measures worked as intended.

“We are facing similar challenges again today. . .Now, however, U.S. national security is at great risk if firm action is not taken immediately. The U.S. primary aluminum industry is on the verge of disappearing entirely, and the U.S. steel industry is not far behind.”

AK Steel Corp. CEO Roger Newport agreed with Koplan’s assessment that this is not a time for dawdling, telling the Commerce Department in his testimony on the steel case:

“High-end electrical steel is an incredibly difficult product to manufacture, as it requires a significant amount of dedicated, capital equipment and a sophisticated, well-trained workforce. Therefore, if AK Steel were to exit the market, there would be no operational electrical steel manufacturing equipment in the United States, the specialized labor and related expertise in operations would be lost, and many of AK Steel’s talented operators and researchers would either relocate to other businesses, industries and/or foreign countries, or become unemployed.”

Workers’ and companies’ economic security is at risk. The nation’s security is at risk. Resolution of these cases should be speeded, not delayed.

Kuster Announces Veterans’ Affairs Oversight and Investigations Subcommittee Field Hearing in NH

Field hearing will examine issues at Manchester VA Medical Center, challenges to access to care for New Hampshire veterans

(Concord, NH) –Congresswoman Annie Kuster (NH-02), the lead Democrat on the House Veterans’ Affairs Subcommittee on Oversight and Investigations, announced today that she will convene a field hearing of the Subcommittee in New Hampshire to examine reports of quality of care issues at the Manchester VA Medical Center. Kuster will be joined by the Chairman of the Subcommittee, Congressman Jack Bergman (MI-01). The field hearing will examine quality of care issues at Manchester VAMC as well as challenges in access to care for New Hampshire veterans. The whistleblowers who raised the issues of care at Manchester will be invited to testify at the hearing on September 18th. Time and location will be announced closer to the hearing date.

“The issues that have been raised about quality of care at the Manchester VA Medical Center need to be thoroughly examined and that means the VA Oversight and Investigations Subcommittee must hear directly from the whistleblowers,” said Congresswoman Kuster.I’m hopeful that by bringing the Subcommittee to New Hampshire we’ll be able to gain a greater appreciation for what went wrong in Manchester, how we can fix those issues, and how we can prevent this from happening in other areas. Granite State veterans deserve better, and we need to do all we can to ensure that they are able to access the services and care they need.”

“Congresswoman Kuster and I will hear directly from VA whistleblowers in Manchester next month,” said Chairman Bergman. “Our goal is to thoroughly examine the gross mismanagement and improper patient care at the Manchester VA Medical Center so this does not remain a problem for our Veterans. This field hearing will lead to greater accountability in the future within the Manchester VA Medical Center and the Department of Veterans Affairs as a whole.”

Congresswoman Kuster wrote to Chairman Bergman earlier this month to request that the House Veterans’ Affairs Subcommittee on Oversight and Investigations hold the hearing to examine the concerns raised by the VA whistleblowers. In her letter, Kuster outlined the unique challenges faced by New Hampshire veterans.

“These concerns are especially troubling to me because New Hampshire is the only state, except Alaska and Hawaii, which does not have a full-service medical center,” Kuster wrote. “As the Boston Globe explained, that means New Hampshire must send veterans to private-sector community providers or other VAMCs. Given the realities of veterans’ medical care in a state without a full-service facility, we must examine the Manchester VAMC’s usage of these critical programs.”

Her full letter is available here and below.

Congresswoman Kuster has served on the U.S. House Veterans’ Affairs Committee since taking office in 2013, and has served as the Ranking Member of the Veterans’ Affairs Oversight and Investigations Subcommittee since 2015. As Ranking Member, she pushes for increased transparency at the VA and helps to lead the charge in Washington on the need to improve access to care for veterans across the country. The daughter of a WWII veteran, Congresswoman Kuster has long advocated for the needs of New Hampshire veterans, and she frequently holds veteran roundtables, forums, and job fairs for Granite State veterans across the district.

170718_LTR_OI field hearing request on Manchester VA

Chicago Teachers Pension Fund Win First Anti-Trust Case Against Big Banks

 Ruling advances case alleging world’s largest investment banks conspired to maintain anti-competitive stranglehold over $275-trillion market.

Case brought forward by the Chicago Teachers Pension Fund

NEW YORK  — In a critical victory for investors and traders across the country, a federal judge ruled today to uphold a majority of claims in a class action lawsuit against many of the world’s largest financial institutions for allegedly conspiring to engineer and maintain a collusive and anti-competitive stranglehold over the market for interest rate swaps (IRS) in violation of federal antitrust laws. In a decision issued by U.S. District Judge Paul Engelmayer, the court ruled that 11 “Dealer Defendant” banks, including Bank of America J.P. Morgan Chase & Co, Citigroup, Goldman Sachs, and Credit Suisse, must face claims brought forth in litigation led by the Chicago Teachers Pension Fund, which seeks an injunction against the banks’ anticompetitive arrangement and compensatory damages.

“We are pleased with the judge’s decision and look forward to vigorously pursuing justice for the Chicago Teachers Pension Fund and other investors harmed by this conspiracy by the world’s biggest banks,” said Michael Eisenkraft, a partner at Cohen Milstein Sellers & Toll, which is co-lead counsel for the plaintiffs in the class action.

 “For far too long, the world’s banking giants have shut investors out of electronic trading, and today’s ruling is a critical victory in leveling the playing field,” said Carol Gilden, a partner at Cohen Milstein Sellers & Toll also representing the Chicago Teachers Pension Fund and working on the case. “Interest rate swaps represent a multi-trillion-dollar market that traders across the world depend upon, and we will fight to ensure investors have access to the transparency, competitive pricing, and faster execution denied to them by the Defendant Banks.”

Interest rate swaps, which are regularly used by a broad spectrum of investors, including pension funds, university endowment funds, hedge funds, and municipalities, allow an entity to swap its fixed interest-rate payments for the floating interest-rate payments of a benchmark, or vice-versa.  Given their daily use across the financial industry, interest rates swaps are a critical, multi-trillion dollar market which investors depend upon.

According to the lawsuit filed in November 2015 in the U.S. District Court, Southern District of New York, interest rate swaps have been standardized and ripe for exchange trading for years. Exchange trading brings transparent and competitive pricing and faster execution to a market, thus bringing significant benefits to investors.

As alleged in the complaint, the market for interest rate swaps has been economically ready for standardized exchange trading, but investors remain stuck trading IRS in an inefficient and antiquated market dominated by the Dealer Defendants. The lawsuit alleges that by blocking the entry of exchanges into the IRS market, the banks force investors to trade with them in an opaque and inefficient over-the-counter market, allowing the Dealer Defendants to extract billions of dollars in higher fees and costs. According to the lawsuit, the Dealer Defendants maintained this profit center by conspiring to squash potential market entrants that threatened to bring competition and transparency to the buy-side in the IRS market. As detailed in the complaint, the Dealer Defendants have jointly threatened, boycotted, coerced, and otherwise eliminated any entity or practice that had the potential to bring exchange trading to investors in the IRS market.

The plaintiffs are being represented by Cohen Milstein Sellers & Toll and Quinn Emanuel Urquhart & Sullivan.

Kevin Cavanaugh wins NH Sen. special election

Manchester, N.H. - In today's state Senate District 16 special election, Manchester Ward 1 Alderman Kevin Cavanaugh defeated former state Senator David Boutin 4746-3814 (55%-44%). Cavanaugh's win is the first time New Hampshire Democrats have won a state senate special election win since February 1984. Senator-elect Cavanaugh is only the second Democrat since 1976 to win Senate District 16.

Boutin had won his last re-election bid in 2014 by 12-point margin and his 2010 special election bid by a 16-point margin. Before tonight, Boutin had never lost in his four state Senate elections. Cavanaugh will serve as the 10th Democrat in the 24-seat New Hampshire state Senate. He will fill the seat of the late first-term Senator Scott McGilvray, who passed away in March of this year. Senate District 16 is made up of the towns of Bow, Candia, Dunbarton, Hooksett, and Manchester Wards 1, 2 & 12.

New Hampshire Senate Democratic Leader Jeff Woodburn issued the following statement:

"Tonight is a great win for Democratic values in New Hampshire. Senator-elect Cavanaugh's victory is a result of hard work and cutting through the noise to deliver a positive message about rewarding work and standing up for working families. We're proud to welcome a strong advocate for education, workers rights, and the opioid fight. Cavanaugh will soon bring his lifelong experience as a working class father of three to Concord and we couldn't be more excited to have him."

NHDP Chair Ray Buckley issued the following statement:

"The groundswell of Democratic energy in 2017 just overcame its toughest challenge yet. Congratulations to Senator-elect Kevin Cavanaugh for a great victory tonight. This win is proof that our movement can compete against any candidate in any district. Cavanaugh's win puts us a step closer to reclaiming the state Senate in 2018, and it marks New Hampshire Democrats' third special election victory in three months.

This loss is a stunning repudiation of the reckless Trump-Sununu agenda. It should serve as a huge wakeup call to New Hampshire Republicans, Governor Sununu, and Mayor Gatsas. They poured everything they had into this race and still came up short. The NHGOP's efforts to suppress the vote only served to energize the Democratic base. This should teach Republicans to back away from fear-mongering, bullying rhetoric that is not just eroding our political discourse but hemorrhaging Republican votes in the state."

DNC Chair Tom Perez released the following statement:
 
“Congratulations to Kevin Cavanaugh for his victory in today’s special election in New Hampshire’s 16th District. When we invest, we win. That's what we did here in New Hampshire and that's what we will continue to do in races up and down the ballot.
 
The values of the Democratic Party are the values of the American people, and we must continue to win elections in order to protect those values. As Kevin prepares to serve the people of New Hampshire, I know he’ll fight for what’s right and help build a brighter future for all the hardworking families in the Granite State.”

Statement from Jennifer Frizzell, VP of Public Policy, Planned Parenthood New Hampshire Action Fund:

“Kevin Cavanaugh’s historic win is a clear signal to the New Hampshire legislature that voters are sick and tired of elected officials playing politics with women’s health. Kevin won because he is a champion for women’s health, and Senate District 16 voters wanted a strong advocate to preserve reproductive health and rights. As a State Senator, we know that women and families in District 16, and across New Hampshire, will have a strong voice and advocate in Kevin Cavanaugh, and we look forward to working with him, and the rest of the New Hampshire Senate, to protect access to care.”

Leo W Gerard: “Do No Harm” Still Hurts

Photo of locked gate at closed steel mill by Getty Images.

Promises were made.

And workers believed candidate Donald Trump when he pledged to stop corporations from exporting American factories. Workers cast votes based on Trump swearing he would end the trade cheating that kills American jobs.

This week, though, workers got bad news from Washington, D.C. President Trump proposed virtually eliminating funding for a Labor Department bureau that helps prevent U.S. workers from having to compete with forced and child labor overseas. In addition, the administration issued only vague objectives for renegotiating the job-killing North American Free Trade Agreement (NAFTA).

When NAFTA has cost at least 900,000 Americans their jobs, vague is unacceptable. Commerce Secretary Wilbur Ross said his first rule in negotiations for a new NAFTA would be to “do no harm.” That’s not good enough. That’s the status quo, and promises were made. The first rule should be to “do substantial good.”

Substantial good would start with clear, firm goals for renegotiating NAFTA. That would include returning those 900,000 jobs to the United States. That would include restoring the jobs the United States continues to lose, like the 350 that disappeared this year when Rexnord closed its Indianapolis ball bearing factory and moved production to Mexico. And like the 632 jobs at Carrier in Indianapolis that will begin vanishing this week when the first layoff notices are issued because the heating and air conditioning manufacturer shifted some production to Mexico.

In Monterrey, where both Rexnord and Carrier moved jobs, the minimum wage is $3.90 a day. Not an hour. It’s $3.90 a day. There is no way for American workers to compete with that. What they were looking for from the NAFTA renegotiation goals is some help.

Instead, they got pabulum. Yes, there’s a whole section on labor, and it says the labor provisions should be in the main document, not in a side agreement. But the fuzzy language doesn’t provide much hope for workers like those who just lost their jobs at Carrier and Rexnord.

It says, for example, that NAFTA countries should have laws regarding minimum wage, hours of work and occupational health and safety. That’s great. But Mexico has a minimum wage. It’s one so low that, as former presidential candidate Ross Perot would say, it sucks American factories right across Rio Grande.

The NAFTA negotiation targets don’t say that the minimum wage should be a living wage or specify how it would be policed to prevent forced and child labor.

Within the U.S. Department of Labor, there’s a section called the Bureau of International Labor Affairs that monitors compliance with labor provisions in international trade agreements and pays for programs to reduce child and forced labor internationally. The intent is to prevent American manufacturing workers earning family-supporting wages from competing with third world children paid with bread and blankets.

The administration has, however, said it wants to gut that program, cutting its funding by 80 percent. In addition to workers, American food and clothing corporations have objected. Nate Herman, a senior vice president for the American Apparel and Footwear Association, told the Washington Post that without the bureau’s efforts, “you’re saying, basically, that it’s okay for forced labor and child labor to run rampant, which undercuts our own labor force.”

Without specific protections in NAFTA and without even the Bureau of International Labor Affairs programs, U.S. workers are subjected to a no-win competition with exploited foreign workers. The Americans end up unemployed, like those at Carrier and Rexnord. The foreign workers continue to be abused.

Promises were made to American workers. They need to be kept. Big league, not halfway.

For example, the solution to Carrier, owned by United Technologies, moving out of Indiana was a half measure.

United Technologies spared about 700 jobs at the Indianapolis Carrier plant only after Vice President Mike Pence, then governor of the state, handed the corporation $7 million. None of the 700 jobs at the other United Technologies plant in Indiana was saved. All of those went to Mexico.

That’s not what Donald Trump promised on the campaign trail. At a rally in Indianapolis last spring, he pledged: “Here’s what’s going to happen. They’re going to call me, and they are going to say, ‘Mr. President, Carrier has decided to stay in Indiana . . . One hundred percent. It’s not like we have an 80 percent chance of keeping them or a 95 percent. 100 percent.”

But then, it was President-elect Trump who called Carrier. And it wasn’t 100 percent. It wasn’t even 80 percent. And, to make matters worse, United Technologies CEO Greg Hayes said that the millions he’d promised to invest in the plant would be spent on automation, further reducing jobs.

This is, according to the Trump administration, Made in America Week. It began at the White House Monday with a showcase of products produced in every American state, from fire trucks to door hinges. But to really revive American manufacturing, the administration must keep its campaign promises. And that means strong language in a renegotiated NAFTA and strong enforcement of other international trade deals and trade laws.

“No harm” is not enough for the administration that promised to cure the injury that international trade inflicted on workers.

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