Did the UAW sell out its brothers and sisters in other unions on the Korean FTA?
The proposed Korean Free Trade Agreement (FTA) with the U.S. should be rejected by the Congress because its investment and government procurement provisions will encourage “offshoring,” according to AFL-CIO President Richard Trumka.
His statement came after the Detroit Three auto companies and the UAW endorsed a revised FTA earlier this week because of concessions on the importation of 75,000 cars into the closed Korean market. (See Korean Free Trade Agreement gets UAW, Ford Support)
Korea is the fifth largest producer and fourth largest exporter of motor vehicles in the world.
Trumka’s concerns about the Korean FTA are larger than the automobile business, reflecting a more diverse AFL-CIO membership. He said it is about “a more fundamental question about what a fairer and more balanced trade policy should look like.”
It also shows a fundamental split in organized labor on this issue. U.S. unemployment officially rose to 9.8% in November, as even jobs in the retail sector declined as the holiday shopping season go under way. (See U.S. Unemployment Rises to 9.8% in November)
Other organized labor groups also rejected the FTA, including the Communications Workers of America and the United Steel Workers.
Major South Korean labor groups also oppose the FTA.
“After thorough review, the United Steel Workers Executive Board views the agreement as falling far short of what is necessary to ensure that U.S. workers and businesses have a fair deal,” USW said yesterday.
“This agreement gives investment and legal protections to large multi-national corporations which shift jobs offshore in search of the lowest labor and environmental costs and highest profits. With no counter balance, multi-national corporations whipsaw workers and nations to prevent and eliminate bargaining rights,” the CWA said.
Critics also claim the Korean FTA also doesn’t address the potential problem of currency manipulation. It also contains lax provisions on rule of origin by allowing up to 65% foreign content in autos eligible for a lower tariff treatment.
This is in contrast to the European Union-Korean agreement, which allows only 45% foreign content.
The AFL-CIO’s statement also said in part, “it is clear that in both the United States and South Korea, workers continue to face repeated challenges to their exercise of fundamental human rights on the job – especially freedom of association and the right to organize and bargain collectively. This deal does nothing to improve or strengthen the provisions negotiated by former President George W. Bush in these crucial areas.”
