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Under Threat: New Trade Deals and Public Sector Workers

Prepared for the By the Resource Center of the Americas & Labor Education Service, University of MN. Minnesota Fair Trade Coalition. Under Threat: New Trade Deals and Public Sector Workers. (June 2003). Manufacturing Jobs Lost …. Free Trade Agreements once affected mostly manufacturing jobs.

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Under Threat: New Trade Deals and Public Sector Workers

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  1. Prepared for the By the Resource Center of the Americas & Labor Education Service, University of MN Minnesota Fair Trade Coalition Under Threat:New Trade Deals and Public Sector Workers (June 2003)

  2. Manufacturing Jobs Lost … Free Trade Agreements once affected mostly manufacturing jobs. • 3,000,000 manufacturing jobs lost to free trade since 1994 • Over 750,000 jobs lost under NAFTAalone

  3. Sweatshops-R-Us Globalization • Many jobs sent to poor countries • Work often done under sweatshop conditions • Workers often denied unions and basic human rights

  4. Free Trade in Services • International trade no longer targets just manufactured goods • Now corporate free traders are going after services – including public services

  5. New Trade Deals and Public Workers • Negotiations are underway on GATS(General Agreement on Trade in Services) and FTAA(Free Trade Area of the Americas) • These agreements could: • mandate privatization of government services • undermine union wages and jobs • threaten government safety, human rights, and environmental protections

  6. GATS (General Agreement on Trade in Services) • Goal is to cover all services, all methods of delivering services, and every government measure at all levels affecting trade • GATS is administered by the World Trade Organization (WTO) • GATS covers 146 nations, including U.S. • Negotiations aim to be done in 2004 -- voted on by Congress in 2005

  7. “Multinational agreements, like the North American Free Trade Agreement (NAFTA) and the General Agreement on Trade in Services (GATS) are slowly taking the decision whether or not to privatize out of the hands of state and local government officials and giving wide-ranging powers to private corporations.” -- Continuing the Fight Against Privatization Resolution passed at AFSCME’s 35th International Convention, June 2002

  8. FTAA (Free Trade Area of the Americas) • FTAA extends NAFTA to 34 western hemisphere nations • FTAA greatly expands coverage of NAFTA • Negotiations aim to be done in 2004 -- voted on by Congress in 2005

  9. GATS, FTAA and Public Employees • Could require many public services to be opened to bid by private foreign companies • Public employees would have to compete to try to keep their own jobs

  10. So, What public services are targeted?

  11. Water Services • Water collection, purification and distribution • Waste-water treatment Many of these services are now provided by municipal water districts and staffed with union public employees

  12. This continues a corporate push to control water supplies

  13. The World Bank estimates a fully-privatized global water market is worth $800 billion a year

  14. Rebecca Mark, former CEO of Enron’s Water Division, said she would not rest until she had: “fully privatized the global water market.”

  15. Enron worked closely with the Bush administrationto define U.S. goals for GATS Surprise …

  16. Waste Management Services • Waste management is also targeted under GATS GATS will likely allow foreign firms to bid on municipal sanitation and incineration work – areas already under heavy pressure from privatization.

  17. Air and Water Protection Services • Protection of ambient air and climate GATS will likely allow foreign firms to bid on the work currently done by the U.S. Environmental Protection Agency (EPA), state Pollution Control Agencies (PCAs), perhaps even OSHA.

  18. Environmental Protection Services • Protection of biodiversity and landscape GATS targets for privatization services that include work done currently by the National Parks Administration, U.S. Forest Service, Bureau of Land Management, and state Departments of Natural Resources

  19. Transportation Services • Urban mass transit and other transportation services GATS could allow foreign firms to bid on mass transit services – buses, trains, metro mobility, etc. It may even include school bus transportation.

  20. Education Services • Higher education, adult education and various training services Currently negotiations are underway to cover all education beyond secondary school.

  21. More services could be targeted • GATS is re-negotiated every few years – this means more new services can be added • Once a service is opened to free trade it is almost impossible to limit it again • FTAA will likely cover even more services

  22. Hypothetical Case – Water Services • Assume GATS rules are already in place This is how privatization would work under the new trade agreements …

  23. A couple of years ago, U.S. Filter (which controlled New Orleans’ sewer system) tried to take control of its water system.

  24. But … Citizens fought back. • A strong coalition wins -- the New Orleans Water and Sewerage Board rejects U.S. Filter’s bid. • The coalition secures a requirement that any future privatization effort must be put to a public referendum.

  25. SEIU Local 100 …

  26. … helps win the fight … and organizes the sewer and water workers.

  27. One day, a few months after the new GATS takes effect in 2006, the City of New Orleans receives a letter …

  28. … fromU.S. Filter …

  29. … a division of Vivendi.

  30. Vivendi … … is a French-based multi-national corporation and one of the world’s largest private water companies.

  31. Dear City of New Orleans: You are obliged under the provisions of GATS to consider U.S. Filter’s bid to operate the New Orleans water system. This decision cannot be put to a citizen referendum. Very truly yours, Vivendi The letter says,

  32. New Orleans seeks help. It asks for an opinion from the U.S. Trade Representative’s Office.

  33. The U.S. Trade Representative replies: • New Orleans must allow U.S. Filter to bid. • If they refuse, the U.S. must use all means at its disposal to force compliance – or else face huge penalties.

  34. New Orleans complies. • Both U.S. Filter and SEIU Local 100 submit bids. • US Filter’s is the low bid – under GATS New Orleans must accept it. • US Filter takes over, fires the union employees, and brings in its own employees.

  35. This was fiction. But if GATS rules are adopted as currently envisioned, this fiction could become all too real.

  36. In the 1990s the corporate free-traders went after industrial workers. Now they are coming after public sector and construction workers.

  37. What can be done? • Build awareness • educate your membership • write opinion piece or letter to editor • write article for local newsletter • Contact Congress • write Congress about specific issue • encourage organization or local elected officials to contact Congress • Make it an election issue • put question on candidate screening • talk to local elected officials about local impacts • Mobilize people nationally • prepare for November Miami rallies

  38. Join the Minnesota Fair Trade Coalition more than 60 unions and allied groups fighting to make respect for working people, family farmers, our environment, and our democracy an integral part of the global economy Contact: Larry Weiss612-276-0788 x19lweiss@americas.org

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