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February 5, 2009 4:15 PM PST

Unions want share of green tech 'stimulus' jobs

by Stephanie Condon
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WASHINGTON--The massive "stimulus" bill that's careening through the U.S. Congress spends billions of dollars in areas including green technology, energy research, and rural broadband.

Congressional leaders have made sure it comes with some strings attached. A "Buy American" requirement remains after the Senate failed to remove it by a 31-65 vote. Net neutrality rules for broadband spending is another condition that's been imposed.

But strikingly absent is one provision that unions would seem to naturally prefer: requirements that spending be directed at unionized firms, or at least focused on jobs with minimum hourly wages.

A report (PDF) released Thursday by labor groups called for any stimulus subsidies to include "wage requirements" and a "prevailing wage policy" as well as an end to the practice of giving contracts to the lowest bidder.

The report, commissioned by the the Sierra Club, Change to Win, the Laborers International Union of North America, and the International Brotherhood of Teamsters, said that new jobs created through spending on "green" technology wouldn't meet their standards. It argues that wages at some renewable energy facilities don't compare to those at other durable goods manufacturing facilities.

A representative of the United Steelworkers of America told CNET News: "The stimulus need not necessarily have any 'mandatory' labor requirements, per se. That said, we believe the Buy American provisions are the absolute cornerstone of revitalizing American manufacturing."

Technology industry representatives expressed skepticism on Wednesday that union-backed demands like the "Buy American" requirements were wise. In addition, AT&T, IBM, Intel, Microsoft, and others sent a letter to the Senate saying--in no uncertain terms--that the idea "will harm American workers."

Jared Bernstein, Vice President Joe Biden's economic policy adviser, said at a conference called Good Jobs Green Jobs that the economic package includes funding for the Green Jobs Act, which passed in 2007 without any appropriations, to provide "green" job training and apprenticeship programs. He said that such measures would "create a regime shift in the demand for jobs...potentially good jobs, union jobs, living wage employment."

However, while the House version of the "stimulus" bill included $500 million for the Green Jobs Act, the Senate version currently only includes $250 million.

"And it's probably under attack," said Chris Chafe, executive director of Change to Win, a coalition of various unions.

"To cut back on that means you're going to put taxpayer dollars into projects that will not create the best jobs for workers," he said. "It's great for the people in it for a couple years, but at the end of the day, if we don't have a career path attached to these jobs, we lose."

Chafe argued that training programs would not only give workers more stability but also make it easier for private firms to take over the "green" industry.

Some union leaders and venture capitalists said they'd like to find ways to work together. One benefit, according to two VCs on a panel, is that a well-trained, well-treated workforce creates a more authentically "green" company--and, subsequently, a better investment.

In labor-intensive infrastructure projects--which the VC firms said most of the green economy will consist of--"the cost of talent, the availability of talent is one of the unknowns," said Jeffrey King, the director of new product development for Pacific Crest Securities. "Investors, what they want more than anything else is information and predictability. Clearly, labor is one of the best sources of information."

"There's also a growing understanding of the power labor brings to the conversation," King said. "There are investors out there who do understand being at the table with labor in the policy conversation is going to be a lot more proactive than just complaining."

Innovation-based industries have not worked well with unions in the past. Of the brightest stars in the high-tech firmament--Google, Apple, Microsoft, Yahoo--not one is unionized.

CNET's Declan McCullagh contributed to this report.

Stephanie Condon is a staff writer for CNET News focused on the intersection of technology and politics. She is based in Washington, D.C. E-mail Stephanie.
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by SteveW928 February 5, 2009 4:47 PM PST
Hmm..... so after ruining the American auto industry... now they want to ruin the Green industry too? I hope not. Also, 'Innovation-based' and 'labor unions' really don't belong in the same sentence. Labor unions are structured to prevent innovation. I have no problem with minimum wage requirements or things like that... but labor unions are a whole different story. They promote status-quo while demanding maximum returns. They compete against one-another and actively suppress cross-training of workers. This keeps their members down and under their control.... which is exactly what they claim they are trying to prevent companies and management from doing. The then stagnant industries they control are milked of their money until they go under, unable to compete in the world market.
Yes, there has to be regulation, laws, and ensured fair treatment of workers... but unions (at least in their present form) are not the answer.
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by Unionpublican February 5, 2009 5:14 PM PST
You obviously have never worked for a Rail Road. The Railway Labor Act is Pro Company and has created more monsters than you shake a stick at. Prior to working on a Rail Road I might have agreed with you but after my experience with the shear sadistic mentality of Rail Road management, sorry pal youre wrong. More buy America goes without question, Labor Unions an absolute must, lest you create more run amok monsters that have a God complex. Most executives today earning six figures from company's they didn't start but helped to ruin would love you. Seems your future is bright, unless of course you think your worth a fraction of what they steal that might present a problem. Best of luck in la-la land
by DJFrankNJ February 5, 2009 5:41 PM PST
So unions ruined the American auto industry? Toyota just shut down their entire assembly line. When you're producing something that's not in demand there's always going to be a problem. The UAW has unfairly taken a bad rap.
As far as preventing innovation, you must be talking about 25+ years ago. Every one of my union contracts have included wording to allow the use of new technology.
by SteveW928 February 6, 2009 9:37 AM PST
@ Unionpublican - I'm not saying that unions haven't had an important place in the past. I'm not even saying that some form of labor organization is not needed today. However, the large national unions which can tie up an entire industry have gotten far too powerful and corrupt. No, I haven't worked for the Railway.

I agree with at least putting some 'buy American' incentives in place, as long as they keep business reasonable. If you artificially prop American business up too much, it will eventually crash big time in the world market. What we need to do, probably, is just put huge taxes or other disincentives on imported goods which can't show they are using fair labor practices in other countries.

My future is 'bright' partly because I've changed jobs as industries and market needs have changed. I've worked really hard to train myself in various areas so that I'm in demand. I've made everything from barely enough to eat to 6 figures at points and everything in-between. One of my main issues with the large US labor unions, is that they DISCOURAGE cross-job training. About 10 years ago, I part of quite a bit of work and negotiation with a couple of the major unions on a project that retired workers from each. The unions were totally against their workers learning any of the skills of the other trade. That's where I went from slightly unhappy with unions, to REALLY unhappy with them. They were just looking out for themselves and could care less if the workers have a future... outside collecting the huge dues. Also, when I saw how much the employees would make if it were not for all the union dues... I was really shocked! I think most workers don't realize how much of a % they are sending to the union of what they could be putting in their pockets.

Fortunately, I live in reality. The contrived system most companies and unions are operating in is la-la-land.

@ DJFrankNJ - Yes, the unions played a large role in ruining the US auto industry... at least leading up to the last 5 to 10 years... where I'd then place most of the blame on management for not doing more to react to a market that any person on the street saw coming (of course, their hands were somewhat tied by unions... but they could have at least shifted their product lines properly). Due to the current economy, many companies are shutting down plants... but Toyota is still doing well as a company... GM, etc. are pretty dead unless they make MAJOR changes in just about every way. See my above points regarding innovation. When unions don't want cross-training or training outside their realm to protect their own interests... that stifles innovation... and hurts the workers. When unions take away the goal of workers building the best products they can... it stifles innovation. The designers have to spend way too much time trying to stupid-proof the assembly and construction.
by galeso February 6, 2009 11:40 AM PST
Unions would be fine if employees were not required to join.
I am stuck with a union that does nothing for me.
The wages are less than other companies in the industry, they have never sent me anything, and I do not even know how to contact them. OK, I could probably find them if I bothered looking.
What the USA needs is an easy way to bow out of scam unions.
by eeee February 6, 2009 7:29 PM PST
SteveW928 is full of nonsense and idiotic "talking points" straight out of a professional union bashing firm. Did you all out there know that consultants will readily take big bucks from corporations such as M/S Apple, Google, Wal-Mart, Verizon, etc to promote fear, intimidation, forced attendance at anti union propaganda meetings all in the name of scaring workers into voting no to form a needed union.
Corporations know that a union is a step for workers to increase their lot in life, to share the billions in profits that they produce for "the company" and to insure a better future for their children.
The instant commentors who quickly bash any mention of union efforts are highly supect and are part of the anti union consultant industry we know is out there.
People like SteveW928 are paid professional liars.
Beware of instant nasty postings from his type of paid fear generator.
by SteveW928 February 7, 2009 3:45 PM PST
@ eeee - Wow... easy there... back off the Michael Moore marathons and get out of the house once in a while, K?

Gosh, I wish I was getting paid by someone... sorry, just life experience here. I'm not bashing any union activity (though I do think the major unions are too powerful and outdated)... but I don't want to see a new emerging industry ruined before it even gets going. IF the green industry turns out to be exploiting workers terribly, then I'll be the first one to help you advocate getting a union in there, OK?

As to my validity.... just click on my name and check out the wide range of posts I've made since 2002. Then click on 'eeee's link and see what you think.
by solu1978 February 5, 2009 6:19 PM PST
@ DJ ... Every Union i worked with before ruined the Company ...

Come late to work .. the managment gives you a warning --- file a grievance with the Union

Call in sick too many days .. the managment gives you a warning -- file a grievance with the union

and the list goes on....
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by SteveW928 February 6, 2009 9:15 AM PST
Yep.... or even things like 'do a good job', other slacker union workers give you hell. You don't want anyone to work too hard or the company might actually start expecting a good days work. My dad worked for a union that spent another couple months on strike (when they had been for a long time already... and many workers where hurting big time) because a few of the 'party guys' with huge influence wanted the company to throw in some extra deer hunting days. Again, I'm all for workers being treated well... and there was a time when unions were VERY needed... and maybe still are in some capacity... but today, the major unions are far more corrupt than the companies. Their demands are largely unrealistic and ruining our countries chance in a world market.
by William Crow February 5, 2009 6:59 PM PST
Will we never be able to rid ourselves of unions that, aside the potentially excessive pay stranglehold they may hold, slow down decision making processes through corporate decision making process involvement?
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by DJFrankNJ February 5, 2009 7:09 PM PST
If by excessive, you mean a living wage, health benefits, decent conditions, and proper training, then unions must go.
by SteveW928 February 6, 2009 10:05 AM PST
@ DJFrankNJ - no, its the stuff like people making like 2x or more what people doing similar jobs would make if they weren't in the unions. For example... I just don't think general skill assembly line workers should make $60k/yr if more highly skilled and schooled professions can't make nearly that much. It is simply out of scale, unnaturally.

Or... stuff like workers making full wages while laid-off with school paid for, etc. Sure, that is really nice... except for pretty much no one else in the country working in other professions has perks like that. Sure it's great till the job is gone. Unions need to realize a union isn't much good if the job is gone.

Or... even on a very basic level.... stuff like protecting bad and unproductive workers.

While unions might often disagree on issues... they MUST be pro-company. I think too often that is forgotten and the company is just seen as a magic money tree.
by DJFrankNJ February 6, 2009 10:49 AM PST
@Steve- I'm not sure which union pays you full wages when you're unemployed. I'm a union member and bad workers get bad layoffs, which are different from reduction of workforce layoffs. If you get several of these, you're out of work for good.
by SteveW928 February 6, 2009 10:56 AM PST
@ DJFrankNJ - GM was one example of where this was happening.... but you're probably right in that example as being an overstatement of the average union. I was just trying to show where unions would tend to push things if they can get away with it. The problem is that they have become self-interested organizations on too large of a scale, and largely out of touch with the realities of the company and markets.
by solu1978 February 5, 2009 7:11 PM PST
DJFrankNJ you got it right 100 % .. unions must go.
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by rquinn7 February 5, 2009 7:48 PM PST
Yup. Unions gotta go. Overpaid and underworked. That's why we can't compete. I try to make sure my purchases do not have any union fingerprints on them. If they do. I'm paying too much.
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by DJFrankNJ February 5, 2009 8:01 PM PST
I hope you don't need the police or teachers anytime soon. They're all overpaid. And no- you can't complete with Asian labor, unless we pay our workers $2 a day and force mandatory unpaid overtime. This economic recovery won't work unless we create jobs which pay decent, living wages. These jobs should be permanent, long-term employment, otherwise we'll be back to square one.
by SteveW928 February 6, 2009 10:27 AM PST
@ DJFrankNJ - there is a huge difference between $2/day with forced overtime and making $60k/yr with huge benefits for an assembly line job. If someone worked with those skills non-union in most industrialized nations, they would make less. I think the key there is to put penalties on imports which can't prove they haven't been built in those conditions. HOWEVER, the US workers need to realize that they WILL and MUST compete with workers in other countries who are being treated fairly on a relative scale. It is just a global reality.... this includes everyone in N.A. and Europe, union or not. I think we can demand proper human rights and fair practices... but we can't hide in some isolated, artificial economy and make many times what people in other countries make for similar work.

I agree with you on the types of jobs which need to be created.... I'm just not sure having the large national unions involved is a good thing (especially not forcing them to be involved).... and especially not in brand new industries. There are plenty of laws in place in this country to protect workers from your $2/day scenario, union or not.
by billmosby February 5, 2009 9:26 PM PST
Why create a lot of jobs when you can create a smaller number of high-paying ones. On the other hand, if you take out the E-Verify requirement, we can do both- create a small number of high paying jobs plus a large number of low wage jobs for the rest of us to compete with.
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by frobroj February 5, 2009 9:50 PM PST
Unions helped to build and keep some very important labor laws and I respect that. But I think unions need to take a back seat. They have recently elevated the American worker right out of work. Unions think locally and at most nationally but we need them to think globally if we want to stand a chance. Show me a union that thinks globally and I will back it. What has a union done to keep jobs in the US? Answer? Not enough!
my 2 cents
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by DJFrankNJ February 6, 2009 3:10 AM PST
Most unions don't think globally. They want you to buy American. And for good reason. You can't compete with the massive exploitation of foreign workers. Why do you think that these companies look towards certain Asian countries for factory locations- nice weather? Highly skilled workforce? No, it's their desperation and lack of enforcement of human conditions. Our country looked like this before unions came along and made conditions better for all. We have a $700 billion trade deficit. Let's buy American and support union labor. The cost of goods would rise, but so would salaries offsetting those increases.
by SteveW928 February 6, 2009 10:35 AM PST
@ DJFrankNJ - Forcing 'buy union American' is just not going to happen. Yes, we should enforce basic conditions on imports and penalize companies operating factories in human-rights-violation type conditions. But, if we ignore global realities, we're just further putting off reality.... and the resulting 'crash' will even more harsh WHEN it happens.
by iptofar February 6, 2009 5:55 AM PST
The highest unemployment rates are in states that are the most unionized. Toyota may have shut production capacity but they didn't get 20 billion from the tax payer either. Unions tend to make their own graves and then complain about the bed in which they sleep. Unfortunately, we all will end up paying for the benefits they negotiated but which bankrupt the companies they negotiated with.

Green jobs are a whole 'nother story. How is that that we will spend more for less and it ends up being green? WInd and solar a 3x+ more expensive than nuclear and impractical in many cas
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by SteveW928 February 6, 2009 10:50 AM PST
@ iptofar - Green works fine, we just have to start actually thinking and stop the panicked stupidity. Yes, there are many 'green' things which are just marketing hype or stupid, not-thought-through ideas by crazy environmentalists. BUT, there are also some very good technologies and things we can do. Do a google search on 'linear fresnel reflector' some time. Utility grade production, 24x7 and relatively inexpensive for the return. We can do a heck of a lot of more recycling, better packaging, building more efficiently, etc. There are also some very promising bio-solutions... such as having various organisms do the 'work' to create hydrogen, and stuff like that. If we just put some $ into green, the return will be spectacular. The best part is, if we properly invest, conserving energy won't ultimately be that big of an issue. We could have so much we won't know what to do with it all... and it will be generally pollution free other than the materials at the plant to produce it and distribution.

We need some kind of balance between the radical environmentalists who are freaking out and thinking stupidly... and the people with their heads in the sand or just being belligerent and resting change. While it isn't what it will be some day... there is good, reasonably priced green technology available to us RIGHT NOW!
by gggg sssss February 6, 2009 8:00 AM PST
Right - the union job strategy was so successful at Magna.
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by michaelo1966 February 6, 2009 8:23 AM PST
I've been in tech my whole life and don't know any unionized tech workers. I'm not especially hostile to unions but not sure they fit into the way "we" do business -- with we being pretty much everybody I know who creates tech companies. We tend to ask for massive flexibility and hours up-front and compensate with reasonable salaries and stock options. Everybody does a little bit of everything with roles and responsibilities being poorly defined at first then tending to solidify, to some extent, as the business mature. Still, even the most mature tech businesses require enormous flexibility in job descriptions. Unions, as they're structured now, tend to demand the opposite: very clearly defined roles and responsibilities. They'd say flexibility leads to exploitation; those who dislike them say nonsense but, either way, the flexibility on hours and roles, combined with deferred (but sometimes large) payouts after years makes it difficult to see how unions would fit into the high-tech model without radically changing their rules and structure. I guess the summary is that at the best tech companies workers and managers work together, and that's the way it has been and should be. When that falls out of sync the companies often quickly fall apart. Unions, by definition, take an adversarial role between workers and managers that just isn't compatible with the tech culture that makes US tech companies great. Of course, maybe they could and should think about adopting to our way of doing business which might make them -- and the companies
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by DJFrankNJ February 6, 2009 9:14 AM PST
Unions work better in some occupations than others. They preach equality, where everyone makes the same rate for a certain job. Unions should change to suit each line of work. The sports unions are a good example of an atypical union.
If US tech companies are so great why do we have a $53 billion global trade deficit in advanced technology products?
by rucknrun February 6, 2009 1:47 PM PST
One union contributed 85 million to the presidents campaign. I guess they do expect a few jobs.
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by gggg sssss February 6, 2009 5:24 PM PST
Unions were once a good idea. So was slavery and barbers with leeches Times have changed.
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