{"id":15783,"date":"2017-09-15T10:13:15","date_gmt":"2017-09-15T02:13:15","guid":{"rendered":"http:\/\/chinaworker.info\/?p=15783"},"modified":"2017-09-15T22:15:11","modified_gmt":"2017-09-15T14:15:11","slug":"foxconn-comes-to-wisconsin-a-bad-deal-for-workers-and-the-environment","status":"publish","type":"post","link":"https:\/\/chinaworker.info\/en\/2017\/09\/15\/15783\/","title":{"rendered":"Foxconn comes to America: a bad deal for workers and the environment"},"content":{"rendered":"

No handouts to Foxconn. Fight for green economy under democratic public ownership<\/span><\/b><\/p>\n

Jack Willis and Jacob Druker\u00a0Socialist Alternative (USA)<\/p>\n

In exchange for $3 billion from the state government, electronics giant Foxconn will build a massive factory in Wisconsin. What\u2019s good for big business is good for the rest of us. Right?<\/p>\n

Given who\u2019s promoting the Foxconn deal, workers have a good reason to be skeptical. The plan, if fulfilled, would be seen as a political victory for President Trump as well as Wisconsin\u2019s right-wing Governor Scott Walker, both of whom campaigned on boosting American manufacturing. Walker has spent his seven years as governor attacking workers\u2019 rights and living standards. Meanwhile, Foxconn, the multinational corporation known for manufacturing the iPhone, is even better known for the high rate of worker suicide in its Chinese factories. Despite the populist rhetoric behind the Foxconn deal, it\u2019s more about corporate welfare than anything that would benefit WIsconsin workers.<\/p>\n

Foxconn\u2019s recently announced\u00a0plan\u00a0entails building a 1,000 acre facility in southeastern Wisconsin. The facility, which would be located in either Racine or Kenosha counties, would cost $10 billion, and would open in 2020. It would immediately employ 3,000 people and could grow to 13,000. It would produce LCD screens, used in smartphones and flat-screen TVs. Foxconn is also reportedly considering building a secondary facility near Madison.<\/p>\n

An agreement between Foxconn and the state of Wisconsin has been\u00a0introduced\u00a0to the state legislature. The state is offering $2.85 billion in cash, $150 million in tax incentives, and exemption from regulations. This deal may create some jobs in the short term, but overall it will put workers and ordinary people at a disadvantage. We must not only reject the Foxconn deal, and others like it, but organize our society in a way that is able to create employment without sacrificing our environment, our health, and our rights.<\/p>\n

\"\"<\/p>\n

Foxconn linked to suicides and worker abuse<\/strong><\/h3>\n

Foxconn has made world news frequently within the past several years. In 2010, at the company\u2019s plant in Shenzhen, near Hong Kong, amidst poor working conditions,\u00a018 workers attempted suicide from tops of company buildings. The company\u2019s response was to install safety nets around the buildings! Since then, the company has moved many of its factories inland where wages are lower. However, these inland factories suffer the same repression and unsafe conditions. In 2011, an\u00a0explosion at a Foxconn factory in Chengdu\u00a0killed 3 workers and injured 15.<\/p>\n

The ban on independent trade unions means workers in China have no formal method of collective bargaining. In January 2012, workers at a Foxconn plant in Wuhan organized a 150-strong protest on the roof of the building,\u00a0threatening to jump to their deaths\u00a0if the company did not negotiate on its planned production speedup.<\/p>\n

Long hours, a demanding production schedule, and restrictions on talking, smiling, sitting, and walking all lead to high rates of burnout and unrest. In September 2012, at the company\u2019s Shanxi facility,\u00a0security guards triggered a riot\u00a0of 2,000 workers, causing 40 injuries and 5,000 police being called to the scene to restore order.<\/p>\n

While use of underage workers has mostly been phased out of the company since 2012, the company\u2019s practices of low pay and exploitation continue. In July, a university in Liaoning admitted that its students were required to complete a three-month\u00a0placement\u00a0at a Foxconn plant in order to graduate.<\/p>\n

Wisconsin: \u201cOpen for business\u201d<\/strong><\/h3>\n

Why did Foxconn choose southeastern Wisconsin as a base for LCD panel manufacturing? In addition to $3 billion in incentives, and exemption from state environmental protections, Foxconn chairman Terry Gou has\u00a0cited\u00a0the region\u2019s centrality within the U.S. and its proximity to trade hub Chicago. As wages in China continue to increase, the company has been looking to manufacture products closer to markets where they sell. The proposed location is close to Lake Michigan, which could provide the massive amount of fresh water needed to manufacture glass.<\/p>\n

Throughout the process of negotiation, Wisconsin Governor Scott Walker and Terry Gou have become rather close. This should not be shocking \u2014 the two have much to get along about! Walker began his first term as governor by\u00a0smashing public-sector unions. At the start of his second term as governor, he went after the private-sector unions,\u00a0passing a new \u201cright-to-work\u201d law. In addition, he has handed out millions in corporate welfare, passed a new right-to-work law, and consistently sided\u00a0with polluters against ordinary people.<\/p>\n

Foxconn has expressed interest in building another facility in Michigan, whose governor Rick Snyder has a similar record, including anti-union legislation, and creating the state\u2019s emergency financial manager system, which is\u00a0blamed for the ongoing Flint water crisis. Walker and Snyder have both promised to make their states \u201copen for business,\u201d unambiguously championing the interests of big business at the expense of working people. And this promise of untrammelled profits is what has attracted Foxconn to Wisconsin and Michigan.<\/p>\n

\"\"<\/p>\n

Unchecked water pollution<\/strong><\/h3>\n

The Foxconn deal would create a special \u201cmanufacturing zone\u201d for the company. This means Foxconn would receive an exemption from state environmental protections, and from permit requirements regarding waterways, allowing them to dump in wetlands which are not specifically protected by the federal government. That is not to say that pollution from Foxconn facilities will not affect federal wetlands! The bill also exempts Foxconn from regulations regarding high-voltage transmission lines.<\/p>\n

Foxconn has been caught polluting waterways before. In 2013, Chinese environmental groups reported Foxconn dumping wastewater containing toxic heavy metals into tributaries of the Yangtze and Huangpu rivers. The water was described as\u00a0\u201cblack-green\u201d\u00a0and as having a strong odor. Foxconn defended itself by pointing out that it was complying with all legally required environmental regulations. Many of the solvents used in LCD manufacturing are\u00a0highly toxic to aquatic animals. Can Foxconn manage these responsibly, along with nitrogen trifluoride, another LCD byproduct with a greenhouse impact\u00a017,000 times\u00a0that of carbon dioxide? Every indication says no!<\/p>\n

State officials and Foxconn have not offered information about the proposed plant\u2019s water usage. It is likely the plant would pull a large amount of water from municipalities like Waukesha, which is in the process of switching its water source to Lake Michigan. Estimates on the plant\u2019s potential water use range from\u00a010 to 15 million gallons per day. Since this alone is bigger than the 8.3 million gallons per day Waukesha plans to draw from Lake Michigan, it is likely Foxconn will also have to use groundwater sources. Throughout the region, depletion of groundwater by high-capacity wells has caused a spike in levels of the radioactive element\u00a0radium in tap water.<\/p>\n

The bill\u2019s single mitigating factor is a pittance. It stipulates that Foxconn pay for two acres of wetland restoration for every acre that they destroy, as opposed to the state\u2019s standard ratio of 1:2. Wisconsin\u2019s\u00a0private wetland mitigation system, like the\u00a0failed carbon trading system, can not prevent large corporations from polluting. Just because it costs a little more doesn\u2019t mean Foxconn can\u2019t pay to pollute!<\/p>\n

We won\u2019t let Wisconsin become an ecological sacrifice zone. People in Racine and Kenosha counties deserve to have clean air to breathe and clean water to drink. While corporations like Foxconn can ignore everything that doesn\u2019t affect their profits \u2014 like long-term health costs linked to pollution \u2014 we can\u2019t afford another planet!<\/p>\n

Long-term job prospects<\/strong><\/h3>\n

Foxconn, like many multinational corporations, has a history of reneging on pledges to create jobs. In 2013, they\u00a0pledged\u00a0a 50,000-job investment in Pennsylvania which never materialized. This also happened in Vietnam in 2007, and in Indonesia in 2014. WEDC, Wisconsin\u2019s public-private agency which oversees job creation programs, has routinely\u00a0awarded cash\u00a0to companies who do not fulfill their promises. Either way, the deal can only boost the profile of Foxconn and credit-seeking politicians like Governor Walker and President Trump. When the jobs fail to appear, the news cycle will have already forgotten about the whole thing.<\/p>\n

LCD manufacturing itself may already be on a decline, being replaced with OLED (Organic LED) technology. Reportedly, Apple plans to make every iPhone with OLED displays\u00a0by 2020. Samsung separated its OLED and LCD business and initiated an\u00a0\u201cexit strategy\u201d\u00a0for its LCD business in 2016. Building these factories, overproducing LCDs, and shortly leaving them shuttered would be an immense waste and a spur for climate change.<\/p>\n

WEDC has argued the Foxconn deal would a stimulate the Wisconsin economy and university system. The construction of the $10 billion campus, including housing and stores, would boost contractors in the short-term. But these profits would benefit large businesses and would fail to stimulate the economy for most ordinary people.<\/p>\n

With the help of the state, Foxconn is looking towards the university system for engineers. A state legislator even argued to\u00a0cut funding from university programs\u00a0who won\u2019t create an engineer pipeline for Foxconn. Investment in education and technology is much needed, but it can\u2019t be bound to corporate interests.<\/p>\n

The jobs creation figures given by analysts are overly optimistic, focused on the short term, and do not factor in the likelihood of a highly automated plant leading to far fewer jobs than promised. Foxconn has a history of automation, boasting in 2016 that it\u00a0replaced 60,000 workers\u00a0in a single plant with robots.<\/p>\n

The deal does not guarantee anything about the conditions of the jobs themselves. Entry-level jobs are\u00a0likely\u00a0to pay around $13 an hour \u2014 not much given the state would be paying between $230,000 and $1 million per job. Due to the low tax rate the company would be paying, the Foxconn deal would remain a\u00a0drain\u00a0on the state budget until 2043.<\/p>\n

The Foxconn deal is part of Walker\u2019s\u00a0neoliberal\u00a0economic plan:\u00a0billions in cuts\u00a0to public education and social services, combined with deregulation, tax cuts for the rich and bribes to corporations. This year\u2019s state budget instituted new austerity measures including drug testing and \u201cworkfare\u201d requirements for SNAP and Medicaid recipients, effectively\u00a0cutting 64,000 people\u2019s benefits. How dare they take away people\u2019s food stamps while bribing a corporation with a yearly revenue of $136 billion!<\/p>\n

A handout of $3 billion is equivalent to $1,300 for every Wisconsin household. Imagine what could be done if we invested $3 billion in public goods like green jobs, education, healthcare and infrastructure! When we consider \u201cjob creation\u201d programs, we should take into account not only the jobs themselves but their social impact.<\/p>\n

\"\"<\/p>\n

\u201cMade in America\u201d<\/strong><\/h3>\n

Across the country, and especially in the Rust Belt, manufacturing jobs which have provided for families in the past are in decline. While Wisconsin\u2019s economy remains heavily reliant on manufacturing, the state has been losing these jobs at a rate much higher than the national average. With the Foxconn deal, Scott Walker has sent a clear message: now that Wisconsin\u2019s labor movement is weak, and there are fewer regulations to get in the way of business, we\u2019re ready to rebuild the manufacturing sector.<\/p>\n

Competition between states for jobs has caused a steady decline in the status of ordinary people. Yet our dependence on the capitalist market has allowed politicians to use the promise of jobs to push deregulatory agendas. Notably, Donald Trump ran his presidential campaign on restoring American manufacturing to compete with China.<\/p>\n

The Democratic Party, while for the most part opposed to the Foxconn deal due to its particular inefficiency, still accepts the same neoliberal approach that leads down this road. Three Democratic legislators in Wisconsin, Peter Barca, Cory Mason, and Tod Ohnstad,\u00a0have gotten behind Walker\u2019s deal. Madison\u2019s Democratic Mayor, Paul Soglin has called Walker\u2019s specific proposal \u201ca terrible deal.\u201d But he has\u00a0also been pushing to bring Foxconn to Wisconsin, suggesting they build in Madison at the site of the former Oscar Mayer plant. The Oscar Mayer plant used to be Madison\u2019s main source of unionized manufacturing jobs, but the company shut down the plant and relocated to Chicago.<\/p>\n

This tendency to shut down good-paying unionized factories only to \u201cbring back\u201d non-unionized, lower-paying jobs is fundamental to the capitalist system. To improve conditions for working people, and to put an end to environmental destruction and climate change, we need to break away from capitalism. When companies close up shop to move somewhere wages are lower, we should take the facilities under public ownership and democratic oversight instead!<\/p>\n

This requires a mass movement of workers and environmental activists operating independently of big business and its political parties. We need to build a new party for the 99%, based in social movements, which can unapologetically fight for ordinary working people and environmental justice.<\/p>\n

Ultimately, solving these problems requires a decisive break with the capitalist system. The profit-driven system of capitalism creates immense waste and is incapable of providing basic job security. Only a\u00a0socialist model based on democratic ownership\u00a0of the heights of the economy can tackle the problem of resource allocation in a rational, sustainable, and equitable way.<\/p>\n

Moving forward, we need to build a movement in Wisconsin of environmental activists and working people, unionized and unorganized, to oppose Foxconn. If we refuse to let jobs be pitted against the environment we can unite to take on Walker\u2019s neoliberal agenda.<\/p>\n

We demand:<\/p>\n

    \n
  • No handouts to Foxconn. Use the money instead to fix infrastructure, invest in public schools, and for green jobs programs. For public investment that takes society into account and values workers as humans rather than economic inputs.<\/li>\n
  • No poverty wages! For a $15 minimum wage. Demand that Foxconn or any new factory operating in Wisconsin pay at least as well as the manufacturing jobs that have been lost.<\/li>\n
  • Labor unions should fight to organize Foxconn! Fight for the repeal of \u201cright to work\u201d and Act 10!<\/li>\n
  • Protect and expand environmental protections. For a\u00a0green jobs and infrastructure program! Transition our economy to sustainable energy.<\/li>\n
  • For democratic public control of the top 500 corporations in the US to serve as the basis for a socialist economy based on human needs.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    No handouts to Foxconn. 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