Volume 2, No. 4, September 2002

New Economy Information Service E-Bulletin

In this issue:

"Workforce Development and the New Unionism"
A New NEIS Book

The Labor Day week-end showed that workforce development is coming back to center stage in the domestic public arena. Our own NEIS book of essays Workforce Development and the New Unionism, is out, describing the unsung role of unions in building the capabilities of America's workforce. [Order from our office for $12.50 by e-mail: vthomas@newecon.org.] Communications Workers President Morton Bahr writes in his foreword, “I hope this collection of essays will be widely read, especially by the labor movement and its friends.”

Besides several papers that sketch labor's historical involvement in worker training, the book includes reports on recent training and education programs in the Seafarers, the Electrical Workers, Machinists, Hotel and Restaurant Employees, and other unions. President Sandra Feldman of the AFT reports on the teachers' efforts to strengthen the capabilities of our teaching staff and schools. Adult education expert Sam Leiken describes the radical strategy for establishing union “learning representatives” at local job sites that is being tested by unions in Britain. Cornell University's Richard Hurd points out lines of convergence between the growing array of technical and professional associations and the skills improvement programs of many unions. As Morty Bahr puts it, training and education could be “a key to labor's revival.”

Aspen Institute Report
Describes Workforce Crisis

An important report issued over the week-end by a task force of notables assembled by the Aspen Institute warns that declining growth in the size and educational attainments of America's workforce threatens "a very serious slowdown in economic growth." The retirement of baby-boomers and their replacement by workers who have less education and skills could reduce GDP growth by as much as one-third, according to a New York Times analysis of the report.

The Institute's report is elegantly presented on their web site, although you will need to download both Macromedia Flash Player and Adobe Acrobat (available free at the site) to get at it http://www.aspeninst.org/.

David Ellwood, the Kennedy School Professor who chaired the task force, outlines two possible scenarios that can develop out of our workforce crisis. The first is that “the worker gap, coupled with that skills gap, leads to a slowing of the economy, a further widening in the gap between the haves and the have-nots, and potentially more tensions around immigration, ethnicity, and race. Shared prosperity would continue to elude the nation as the wage gaps widen.”

Ellwood's alternative and more rosy scenario is this: “In the face of impending labor shortages, particularly of skilled workers, businesses and the nation might work together to train and upgrade the skills of existing workers. Immigration could be used thoughtfully and selectively to meet areas of particular shortage. There could be greater opportunities for workers to move ahead, both within firms who want to retain them, and in other businesses. That increased potential for mobility would encourage hard work and a willingness to invest in new opportunities. Because workers are training and working harder, productivity grows because as some workers move up and out, the numbers of less skilled workers decline, and their pay rises. With rising productivity, pay can rise without inflationary pressures. Thus, the nation might return to an era of shared prosperity.”

Ellwood repeatedly stresses that his more hopeful scenario “is unlikely to be achieved through market forces alone. Getting there will require a concerted effort by businesses, governments, workers, and communities.”

One thing missing from this otherwise impressive report: any clear suggestion about what labor unions might contribute to dealing with the impending workforce crisis. (Although the group had some labor members, it was dominated by business leaders and high-altitude policy thinkers.) Fortunately, readers can remedy this deficiency by purchasing the new NEIS workforce book noted above.

Our authors explain persuasively that businesses are unlikely on their own or in concert to address this public need -- and that they couldn't accomplish much by themselves it even if they tried. The task will require cultural, political, and economic commitment from below – not just nifty social engineering. This is what makes the British experiment with union “learning representatives” so interesting, and why we argue for greater attention to training incumbent workers.

 

Workforce Development
Takes Labor Day Spotlight

The editorial pages of both The New York Times and The Washington Post carried important Labor Day articles on the need for more workforce training. Sam Leiken, a featured author in our NEIS book, published an op/ed in The New York Times on August 31. He contends that "If labor unions are to flourish in the 21st century…they will have to reach workers who no longer have long-term ties to one employer -- or even to a single industry. These new circumstances present unions with an opportunity to expand their membership. Today's workers need to continually improve their employability through better education and training, and unions are uniquely qualified to help."

The Washington Post also carried an op-ed by the Aspen Institute's David Ellwood on its workforce report.
http://www.nytimes.com/2002/
08/31/opinion/31LEIK.html

http://www.washingtonpost.com/wp-dyn/articles/A24675-2002Sep1.html


Optimism at A. Philip Randolph
Worker Training Center

A glimpse at what unions can do: on August 30, D.C. Mayor Anthony Williams, AFL-CIO President John Sweeney and D.C . Central Labor Council President Joslyn Williams gathered on North Capitol Street to celebrate the opening of the A. Philip Randolph Worker Center, a "one-stop" career counseling and training facility said to be the first of its kind run jointly by a local labor council and a city government.

This project grew out of a testy dispute between Mayor Williams and some in Washington's labor and political communities over the privatization of inpatient services at DC General Hospital, which cost some 1500 unionized workers their jobs. (The DC General conflict also helped spawn a campaign against Mayor Williams in the September 10 Democratic primary.) According to the Washington Post, the new training center has already placed 160 former DC General workers in new jobs, and soon expects to place another 165.

As The Post described the ribbon-cutting, "Among the happy crowd were displaced DC General workers being retrained at the facility, where they receive individualized attention. Some laid-off workers looked back on the painful, disruptive demise of the public hospital in June 2001 and said that, in an unexpected way, it was a good thing because it forced them to seek training at the center for better careers."
http://www.washingtonpost.com/wp-dyn/articles/A18167-2002Aug30.html

(For another example of what admirers of the late Sleeping Car Porters' President A Philip Randolph have accomplished in the training and education field, see Arch Puddington's piece in our new NEIS book.)


President Bush Visits
Carpenters' Union Training Site

President Bush seems to be noticing the union role in workforce development – or at least one particular union's role. For the second Labor Day straight he visited a United Brotherhood of Carpenters and Joiners training facility to make the obligatory holiday speech. (Last year it was in Wisconsin, this year it was near Pittsburgh.) The maverick Carpenters, who have left the AFL-CIO and are being avidly pursued by White House political strategists, have invested hugely in training and education. The new national training center in Las Vegas cost some $23 million, according to the Washington Post, Members learn not only traditional skills, but about job safety, environmental protection, and new construction technologies.

British TUC Challenges Myths About Globalization

The pace of the war on terrorism and ambivalence in US policy toward Iraq have given new running room to the anti-globalization movement, whose anti-American and Third Worldist rhetoric came to sound jarring in the immediate aftermath of September 11. Protesters from the groups that make up this loose coalition enjoyed wide publicity during the recent U.N. World Summit on Sustainable Development in Johannesburg. Demonstrations planned in Washington for this September's meetings of the World Bank and IMF appear to be attracting enough participants to stir security concerns in local government. Perhaps the globalization debate is about to resume.

If it does, there is a new resource that sensible people will find helpful: a policy paper issued last June by the British Trades Union Congress called Globalization: Myths and Realities.

Large and diverse organizations typically produce anodyne policy statements. Thankfully, this one takes up the issues in a straightforward way. Both the evangelists for globalization and its neo-Left opponents take some licks.

"Globalizers seem to believe that they have history on their side, that technology has changed everything, and that anybody concerned about the pace of change is a luddite incapable of engagement with twenty-first century reality," says the paper. It offers this delicious quote from Adair Turner, a former Director General of the Confederation of British Industry, no less, that could just as well have been written about the United States:

"Market fundamentalism appeals because it gives to its true believers that absolute certainty that so many intellectuals who should have known better derived from Marxism between the 1920s and 1970s. A notable feature of meetings at Britain's more right-wing think tanks, or of debates on European issues with representatives of the ultra-liberal [ed. note -- pro-free trade] right, is the presence of young men in particular who seem to glow with the absolute conviction one saw on the faces of Marxist students in the 1960s and 70s."

The critique of the anti-globalization Left is no less pointed: " ' [G]lobalized resistance' outside the democratic structures of developed countries -- supposedly because the institutions have been captured by the agents of capital -- is a fundamentally anti-democratic delusion."

The TUC paper challenges a number of what it calls the myhs of globalization:

  • "The world economy was more global in the 1870-1914 period than it is today."
  • "There is no evidence to suggest that there has been a decline in real wages in the developed world -- quite the reverse in fact."
  • "[T]he poorest countries in the world are staying poor partly because they have inadequate access to the world trading system…."
  • "…80 per cent of the fall in industrial employment in the advanced economies between 1964 and 1994 can be explained by internal factors [ed. note -- new technologies and processes] and only 20 per cent by competition from low wage economies."
  • Inequalities in education and skills within the developed world may be a greater cause of wage inequalities than pressure from low-wage labor markets abroad.
The paper proposes strengthening and reforming the international financial institutions, rather than hobbling or abolishing them. It urges developing countries to respect the ILO's core labor standards as a means of fostering development, rather than evading them on account of their allegedly imperialist character. It proposes that ILO standards be incorporated into the WTO and multi-lateral investment agreements. It urges governments and corporations to abide by the OECD's Guidelines for Multinational Enterprises that cover human rights, trade union rights and environmental protection.
http://www.tuc.org.uk/international/tuc-5044-f0.cfm

About NEIS

This E-Bulletin is published by the New Economy Information Service (NEIS), a project of the Foundation for Democratic Education. NEIS provides information and reviews debate on the impact globalization and technological change has on democracy at home and abroad. Current interest focuses on how American workers can be equipped with the skills they need for decent employment and economic security, and on how the globalization of the economy and the expansion of democracy can strengthen one another.

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