[Congressional Record (Bound Edition), Volume 163 (2017), Part 10]
[House]
[Pages 14992-14994]
[From the U.S. Government Publishing Office, www.gpo.gov]




               TRADE AND JOBS HEARING IN BROOK PARK, OHIO

  (Ms. KAPTUR asked and was given permission to address the House for 1 
minute and to revise and extend her remarks.)
  Ms. KAPTUR. Mr. Speaker, during the August recess, I organized a 
district field hearing to hear firsthand accounts from America's 
workers, my constituents, on NAFTA's disastrous job impacts. These 
voices must be heard and listened to as our Nation renegotiates NAFTA. 
These real stories are the people who live the impacts of Washington's 
agreements.
  I thank the Local United Auto Workers Chapter 1250 for graciously 
hosting us, a region that lost over 14,500 jobs after NAFTA's passage 
to Mexico and to Latin America.
  Mr. Speaker, I include in the Record the testimony of Amy Hanauer of 
Policy Matters Ohio, Donnie Blatt of the United Steelworkers, and Mark 
Payne of the United Auto Workers.

                    Amy Hanauer, Policy Matters Ohio

       Representative Kaptur and others, thank you for the 
     opportunity to testify today alongside these strong community 
     leaders. I'm Amy Hanauer and I run Policy Matters Ohio, a 
     policy research institute dedicated to creating a more 
     vibrant equitable, sustainable, and inclusive Ohio. Find us 
     online at www.policymattersohio.org.
       Trade and jobs in Ohio: Key principles to improve outcomes 
     for workers
       NAFTA and other trade agreements have eliminated jobs in 
     Ohio and the United States. Manufacturing remains an 
     essential part of Ohio's economy, despite its downturn. Smart 
     policy can strengthen Ohio manufacturing while making our 
     economy greener and stronger Some key recommendations 
     include:
       Invest in infrastructure, particularly clean energy
       Invest in solar panels and wind turbines
       Structure these projects carefully, prioritizing good jobs 
     and diverse workers
       Support American manufacturing through proven programs
       Support manufacturing extension programs
       Buy American when spending public dollars
       Support smart worker training
       Improve trade agreements
       Increase worker protections
       Improve environmental standards
       Eliminate special courts
       As we have long documented at Policy Matter, the North 
     American Free Trade Agreement and other trade agreements have 
     not accomplished what they were supposed to in Ohio. Our 
     current trade rules favor multi-national corporations and 
     their investor over workers and citizens. As a result, these 
     policies have reduced the quantity and quality of domestic 
     jobs, thereby exacerbating wealth inequality. Many 
     multinational corporations that once employed people here 
     have instead located in places with lower wages, fewer 
     environmental regulations, and weaker labor regulations. 
     NAFTTA rules made that shift easier.
       One reason these deals have been so destructive is that 
     they transfer power away from citizens and to international 
     investors. They bar nations, states, and cities from enacting 
     labor and environmental policies that protect the public. 
     They block local governments from using policy to boost 
     demand for domestic products, such as local sourcing.
       NAFTA was promoted as being broadly helpful to Americans 
     and our trading partners. But the economist Susan Helper 
     recently testified that NAFTA slowed wage growth in U.S. 
     industries and regions. This hurt not just manufacturing 
     workers, but also service employees, as displaced 
     manufacturing workers sought jobs in restaurants and retail 
     and as laid-off workers had less to spend in the economy. In 
     Mexico as well, wages stayed mostly flat even though 
     productivity increased. Mexican manufacturing wages remain 
     well under 20% of U.S. manufacturing wages.
       The Economic Policy Institute found that NAFTA cost the 
     U.S. 683,000 jobs from 1994 to 2010. Manufacturing, as a 
     sector, lost the most, 60.8 percent. Geographically, Midwest 
     states like Ohio took the hardest hit. NAFTA also displaced 
     Mexican small farmers and business owners, and did not raise 
     wages relative the U.S. Despite that, the treaty became a 
     model for the World Trade Organization, China trade 
     normalization, and other deals As a result of all of these, 
     economist Jeff Faux estimates an additional net loss of 2.7 
     million U.S. jobs and economist Josh Bivens found that the 
     typical American with just high school degree loses $1,800 a 
     year.
       Manufacturing has declined, but remains an essential part 
     of Ohio's economy. One in eight Ohio employees works in 
     manufacturing. We had 687,000 manufacturing workers in 2015: 
     only California and Texas have more. Average wages of $1,119 
     a week were 24.9 percent higher than in other sectors. Ohio 
     manufacturers contributed $108 billion to the economy in 
     2015, 17.8 percent of the total for the state. So that sector 
     is responsible for one in every six dollars and one in every 
     eight jobs in Ohio. The typical worker with a high school 
     diploma and no college earns $2.99 more per hour in 
     manufacturing.
       While the sector has generally lost employment over the 
     past several decades and in the most recent recession, some 
     signs point to a partial recovery. Good policy, including 
     trade policy, can make this more likely. There are clear 
     things we can do to improve policy so that workers and the 
     environment on all sides of the border are better protected.
       At Policy Matters, we recommend three large policy 
     priorities to address these issues:
       Invest in infrastructure, especially energy: America's 
     infrastructure is crumbling around us and we are completely 
     underinvested in infrastructure that would reduce energy use 
     and address other environmental problems. We should get to 
     work now, upgrading, maintain, and building infrastructure 
     that would strengthen our communities and make our planet 
     more sustainable, and we should make sure that American 
     products are used throughout these projects. To name a few 
     priorities:
       We should install solar panels on every public building in 
     the United States, buying from American companies and having 
     unionized tradespeople do the installation. Right here in 
     Cleveland there are entrepreneurs selling solar panels and 
     they argue that even here in snowy Cleveland, many 
     residential solar installations now pay for themselves in 
     less than a decade and commercial systems will pay for 
     themselve in less than six years. Representative Kaptur is a 
     longtime champion of this approach, and Toledo, with its 
     extensive glass-making history, has a strong supply chain 
     that could play a key role in this work.
       We should be installing wind turbines wherever appropriate, 
     using Ohio's substantial supply chain to produce component 
     parts for these turbines. Here in Cleveland, we continue to 
     want to see the Lake Erie Economic Development Company 
     project build the first fresh water wind farm in the country 
     on Lake Erie. We got some great news just this week that this 
     project cleared another hurdle and is moving forward--but 
     movement has been much slower than needed because public 
     policy at the federal and state level just down no 
     incentivize this kind of job-creating energy-generating 
     investment.
       These projects should be structured carefully. There are 
     sound principles at the

[[Page 14993]]

     website millionsofjobs.org that I encourage you to look at, 
     but some of the elements we support include supporting direct 
     public investment, not tax giveaways for corporate subsidies 
     and making sure that these projects are union-built, have 
     inclusive workforces that represent the diversity of the 
     communities in which they're being done, and have worker and 
     environmental protections. SA mentioned, all of these 
     projects should pay decent wages, should source from U.S. 
     made products, and should prioritize the needs of 
     disadvantaged communities--both urban and rural. Finally, 
     these projects should be paid for through fair, progressive 
     taxes so that the wealthiest Americans and giant corporations 
     who reap the greatest economic benefit from public goods pay 
     their fair share.
       Support American manufacturing through proven programs:
       Manufacturing Extension Partnerships (MEPs) help 
     manufacturers work together to solve problems and find 
     solutions to assist their sector. They assist with research 
     and development, commercialization, joint marketing and 
     branding, worker training, identifying new technology, share 
     investments like makerspaces, and reshoring. The federal 
     government should deepen investments in MEPs. Instead 
     President Trump's budget proposal threatens to entirely 
     eliminate this modest but successful program. Similarly, the 
     manufacturing innovation institutes that have been so 
     successful, including one in Youngstown, face 70% cuts in the 
     Trump budget.
       Buy American: We should Buy America provisions for all 
     public spending at all levels of government. Senators Rob 
     Portman and Sherrod Brown have both voiced support for these 
     important provisions and I would urge you to join in that 
     support. The Trump Administration should apply Buy America to 
     all federally-funded infrastructure projects. President 
     Trump's intent in this area is not entirely clear and we 
     should encourage him to make good on promise he has made to 
     support American products. While Buy America rules apply to 
     some federal infrastructure programs, many taxpayer-funded 
     projects still lack rules requiring the use of American-made 
     projects. Brown's proposed legislation would ensure Buy 
     America rules apply to all federally-assisted projects.
       Invest in worker training: The Workforce Investment and 
     Opportunity Act, WIOA, trains and educates workers, focusing 
     on career pathways and apprenticeships. By incorporating a 
     strong understanding of the labor market, WIOA is 
     transforming the workforce system for those who face 
     significant barriers to employment. The act pushes the public 
     sector to better serve low-skilled, low-income adults so they 
     can achieve not just self-sufficiency, but real economic 
     mobility. Ohio trains have been working hard to take 
     advantage of these new approaches. For Ohio workers who face 
     barriers to employment and tough job markets, it's essential 
     that we all deliver. Yet, this program too is on the chopping 
     block under the Trump Administration. The Trump budget calls 
     for cuts of approximately $1 billion from the WIOA program. 
     The cuts represent about a 40 percent reduction from current 
     funding levels and would have devastating impacts on states 
     and local communities seeking to address the kill needs of 
     businesses and jobseekers. Instead of cutting WIOA, we should 
     be enhancing it.
       Improve trade agreements. This encompasses three primary 
     provisions.
       Increase worker protections. NAFTA has reduced bargaining 
     power for workers in both the U.S. and Mexico. Workers and 
     their representatives have little ability to object to 
     sweatshop conditions or labor law violations. At most they 
     can call for consultations that have no enforcement 
     mechanisms. Investors have much more power to object and much 
     stronger mechanisms to do so. Worker representatives from all 
     countries in an agreement should be brought in to propose 
     standards. I encourage this committee to consul the AFL-CIO 
     (2017) and the Roosevelt Institute (Tucker, 2017) about how 
     best to remedy this in renegotiation.
       Improve environmental protection. Environmental protections 
     in NAFTA are relegated to side agreements with no enforcement 
     provisions. This is why we've seen more use of polluting 
     fossil fuels, less protection of greenspace and forests, and 
     more deeply problematic mining since NAFTA. Other testimony 
     today provides more detail on how best to address 
     environmental concerns, but minimally, those who breathe the 
     air, drink the water, and suffer from global warming should 
     have as much power as multination corporations to raise their 
     issues. (350.org et. Al, 2017)
       Eliminate special courts for investors. NAFTA established 
     special courts where firms can challenge government policies 
     that affect their investments. These ``investor-state dispute 
     settlement'' (ISDS) mechanisms undermine democracy and 
     national sovereignty. This system should be eliminated so 
     that citizens again have the ability to advocate for the laws 
     they think will best protect their communities.
       In sum, there is much that federal policy can do to create 
     fair trade, to promote American manufacturing, and to improve 
     job quality and availability. We decide the kind of economy 
     we want to have and we can choose one that does more for our 
     families, communities, and planet. We appreciate your 
     interest in exploring and further those policies.
                                  ____


Donnie Blatt, Assistant to the Director, United Steelworkers--District 
                                   1

       I would like to thank the sponsors for holding this event, 
     UAW Local 1250 and its officers and of course our great 
     Congresswoman Marcy Kaptur. Congresswoman Kaptur has been a 
     great public servant for many years and has been a great 
     friend to the United Steelworkers, not only in her 
     Congressional District but all over Ohio and our Nation. I 
     want to thank her personally for her role in the re-
     negotiation of the North American Free Trade Agreement 
     (NAFTA). The United Steelworkers have been involved in the 
     trade debate since NAFTA was incepted in 1994 and we are 
     happy for include our voice going forward to again try to 
     make trade competitive and fair for all workers, not just in 
     the United States, but for the workers of our trading 
     partners as well.
       As an International Union that represents workers in a wide 
     range of sectors, not just steel but aluminum, tire and 
     rubber, glass, paper, auto parts, fabrication, public sector 
     and many more. We have a wide range of knowledge on trade and 
     how trade affects not only the U.S. workers, but also the 
     communities where they live. The biggest problem with NAFTA 
     and similar trade agreements is that it allowed for multi-
     national corporations to shift jobs wherever workers can be 
     exploited and environmental regulations are the weakest. Even 
     with the promises of great economic growth for all the U.S. 
     Labor Department certified nearly 1 million manufacturing 
     jobs has been lost just with the NAFTA agreement alone.
       With NAFTA and other NAFTA-style trade policies such as 
     Permanent Normal Trade Relations with China (PNTR), the 
     Central America Free Trade Agreement (CAFTA) and the Korea-
     U.S. Free Trade Agreement (KORUS), the United States has 
     closed roughly 60,000 manufacturing facilities here at home. 
     To put things into perspective, this represents 3 times the 
     number of people that live here in Brook Park, OH. If you 
     would go around Brook Park today, every man you would see 
     would be equal to 3 manufacturing facilities closed, for 
     every woman you would see would be equal to 3 manufacturing 
     facilities closed and for every child you would see would be 
     equal to 3 manufacturing facilities closed. The 60,000 closed 
     facilities equates to around 5 million lost manufacturing 
     jobs. This number represents the entire population of the 
     states of Montana, Idaho, Wyoming, North Dakota and South 
     Dakota combined. It's not just about manufacturing jobs, the 
     U.S. has also experienced job loss in the sectors of computer 
     programming, call centers, engineering and service sector 
     jobs as well and many other employment sectors. In Ohio 
     alone, since NAFTA, we have lost over 300,000 manufacturing 
     jobs which is more than every man woman and child that lives 
     in the city of Cincinnati.
       Along with the jobs that are lost directly in 
     manufacturing, there are effects to the local community. 
     First, because manufacturing jobs typically pay more than 
     other jobs in the area, when they are lost there is a natural 
     downward pressure that is put on wages and benefits to 
     remaining jobs in the immediate area. Secondly, the 
     combination of the lost manufacturing jobs and the downward 
     pressure on the remaining jobs means less money for the 
     community tax base, which affects the schools, police and 
     fire departments, roads and bridges and other public 
     services. This means the public sector workers are left 
     struggling to maintain a decent standard of living for their 
     families. Donald Trump has been right to highlight NAFTA and 
     the impact it has had on our trade deficit. Yet his 
     administration has failed to propose the bold changes needed 
     to properly replace NAFTA, reduce our trade deficit, and 
     create more manufacturing jobs that would raise wages for 
     workers at home and abroad, as was promised.
       There are conditions needed in future trade agreements that 
     the Trump Administration has not committed to, to make trade 
     fair and a level playing field. First, we a strong and 
     enforceable labor and environmental standard that will not 
     only lift wages and protect jobs here at home, but will lift 
     working conditions abroad. So far the Trump Administration 
     only seeks to use the weak and unenforceable standards from 
     previous agreements. Second, we need to end investor state 
     protections that make it easier for multi-national 
     corporations to shift jobs overseas and end investor state 
     dispute settlements that allow corporations to sue the United 
     States taxpayers because of a law that may protect its 
     citizens yet may increase corporate production costs. Third, 
     we need stronger rules of origin laws and close the back door 
     that allows parts made in China and Vietnam and assembled in 
     the United States and labeled made in the USA in order to get 
     tariff relief protection. Tariff deduction should not be 
     granted unless the majority of the product is made here at 
     home. Lastly, we need to end the NAFTA ban on ``Buy America'' 
     so tax dollars can be used as much as possible to create jobs 
     that local communities desperately need. The White House plan 
     to renegotiate NAFTA is

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     vague on these four points. If the NAFTA renegotiations 
     process is going to benefit American workers we have to hold 
     the White House more accountable for these promised changes 
     and more.
       Finally, the NAFTA renegotiations cannot be done behind 
     closed doors with corporate advisors dictating the terms of 
     the Agreement. This creates too many conflicts of interests. 
     They must be transparent and exposed to public scrutiny. The 
     United Steelworkers stand ready to lend their voice and 
     resources to ensure these points are part of any NAFTA 
     renegotiations. Thank You Congressman Kaptur for your work 
     and your consideration.
                                  ____


                       NAFTA Hearing, Mark Payne

       I am here to talk about manufacturing in Cleveland and the 
     effect NAFTA has had on our Site. At one time our Site had 
     over 14,000 workers. Our Aluminum Plant phased out 2005 and 
     the equipment was loaded up and sent to Cifunza, Mexico.
       Our Casting Plant phased out in 2010 and its work was sent 
     to Mexico and Tupy, Brazil. Engine Plant 2 Phased out in 2012 
     and is now sitting idle. This Plant won the Shingo Award for 
     best quality!
       What is the common denominator here? Bad Trade 
     Agreements!!!!
       We battled against the EPA Restrictions in the Casting 
     Plant. We fought against low wages from other countries.
       How do you compete against poverty wages? Against lax EPA 
     standards from other countries? Against a lack of investment 
     in America?
       Across from our Union Hall once stood our Casting Plant, it 
     is now just an open field . . . Was it dirty work, yes, but 
     it was our work!!!
       Our workers know the effects of a bad Trade Agreement!
       But, we did not have a Level Playing field!
       Trade Agreements seeks to drive down our wages in a race to 
     the bottom. The current Mexican auto worker wage has even 
     fallen under NAFTA, from $3.95 an hour to $2.93 an hour.
       With fair competition we have proven that we will excel in 
     the global marketplace. But we must have a living wage for a 
     fair day of work. We must invest in America.
       The problem is our Trade agreements ``perception'' of 
     progress, without making any. The problem is our trade 
     agreements reward Companies that take work out of America.
       Are the Trade agreements unlocking the opportunities for 
     America or are we just widening the lane for our jobs to 
     leave America?
       Trades Agreements has cost Ohio over 323,000 manufacturing 
     jobs. Under NAFTA the trade imbalance in the auto sector has 
     grown from $3.5 billon in 1993 to $45.1 billion in 2016.
       Ford will say that they were only following their ``Way 
     Forward'' Strategy. For Cleveland NAFTA has been a job 
     killing strategy.
       No one can tell me that low wages mixed with lax EPA 
     standards was not a part of Ford's ``Way Forward'' decision 
     to relocate our work.
       Nothing stings worse than having your jobs moved to another 
     country produce the product you used to make, and have that 
     same product brought back into this Country for us to buy.
       In Cleveland, we are slowly coming back, we produce the 3.5 
     and 3.7 V-6 Ecoboost engines and we were able to accomplish a 
     ``reverse NAFTA', bring work from Spain to Cleveland when we 
     launched a new 4 cyl engine. We are also slated to produce 
     the engine from the New Ranger/Bronco vehicles coming out in 
     2019.
       Work coming back to Cleveland is like Lebron James coming 
     back to the Cavs. They should have never left! Ohio is a 
     great place for work to come to . . . no social unrest, just 
     hard working men and women from a blue collar town, building 
     quality engines.
       In closing, I want to thank Congresswoman Marcy Kaptur for 
     fighting the good fight and for supporting good paying jobs 
     in America once again. Congresswoman, Spread our message! The 
     UAW has your back!

  Ms. KAPTUR. Mr. Speaker, they directly know the negative impacts of 
NAFTA. Amy stressed the changing nature of manufacturing in Ohio, 
making up one of eight jobs. Donnie discussed how Ohio has lost over 
300,000 manufacturing jobs as well as the imperative for a new NAFTA 
transparent agreement. Mark Payne spoke about the need for a 
continental living wage and investment in American job growth. All 
three emphasized a deal that works for jobs here in America, America's 
workers, and Buy American provisions.
  Mr. Speaker, I urge my colleagues and the administration to take heed 
of their testimony. We need to create jobs here in America and across 
this continent that are living wage jobs.

                          ____________________