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NEWS - Labor Issues Create a Divide



Subject: NEWS - Labor Issues Create a Divide as WTO Set to Meet 

Labor Issues Create a Divide as WTO Set to Meet 

Trade: Third World nations balk at developed countries' bid to put
workplace concerns on agenda of landmark meeting. 

By JONATHAN PETERSON, EVELYN IRITANI, L.A. Times Staff Writers


 WASHINGTON--Sweatshops. Child labor. Jobs fleeing to Mexico. Organized
                                            labor, long stymied in its
bid to use trade policy as a tool for its agenda, has
                                            persuaded the White House to
take up its cause when trade ministers from
                                            around the world convene in
Seattle on Nov. 30. 
                                                 But last week,
negotiators got a foreshadowing of what to expect as dozens of
                                            developing nations demanded
that labor standards be put off-limits at the
                                            landmark meeting of the
World Trade Organization. 
                                                 When the European Union
proposed at a WTO meeting in Geneva that
                                            workplace matters be
included on the Seattle agenda, there was overwhelming
                                            opposition from Third World
nations--demonstrating anew that linking workplace
                                            issues with trade deals
remains an enormously controversial issue in much of the
                                            world, where low pay and
crude working conditions are often the norm. 
                                                 Many poor nations fear
they could ultimately be forced to improve the lot of
                                            their workers at a cost that
would price their products out of rich overseas
                                            markets. Indeed, sorting out
this conflict in a way that satisfies both human rights
                                            and economic progress has
long eluded trade negotiators and promises to be a
                                            contentious issue at the
Seattle summit. 
                                                 "It's one thing to say
we want labor rights in the World Trade Organization. It's
                                            quite another thing to say
what we're willing to pay [to emerging nations] to get
                                            them," said Rob Scott, an
economist with the Economic Policy Institute in
                                            Washington. 
                                                 Yet a combination of
political realities and hardball tactics--including union
                                            plans to shut down all the
ports in Washington state on Nov. 30--has pushed
                                            labor concerns into
prominence as the WTO meeting approaches. 
                                                 President Clinton last
month proposed that the WTO create a group to look at
                                            how trade rules and
workplace concerns are linked, and European officials last
                                            week agreed to support such
a proposal in Seattle. 
                                                 But organized labor has
long claimed that American jobs are jeopardized by
                                            exploitative workplaces
abroad. 
                                                 "We don't want to shut
down the trading system," said David Smith, director of
                                            public policy at the
AFL-CIO. "We want to hold it to a simple standard--that it
                                            improves the standard of
living of working people everywhere." 
                                                 In fact, labor's
quarrel with the North American Free Trade Agreement and
                                            similar plans is among the
reasons U.S. trade initiatives have all but ground to a
                                            halt during the past few
years. 
                                                 Against that backdrop,
many observers--including angry union members--were
                                            startled last week when
AFL-CIO President John Sweeney joined a handful of
                                            business leaders in signing
a letter expressing general approval of U.S. plans for
                                            the Seattle meeting. At the
event, officials expect to launch negotiations aimed at
                                            opening global trade in
agriculture, services, electronic commerce and other
                                            areas. 
                                                 But in the letter
sealing the deal between Sweeney and the business leaders,
                                            labor gained something new:
support from such major companies as IBM,
                                            Hewlett-Packard, Eastman
Kodak and Monsanto for exploring the link between
                                            labor issues and trade
deals. 
                                                 "Even the business
community is ready to accept what organized labor wants if
                                            that means in the future we
don't have these vicious disputes over things like
                                            NAFTA," said one high-level
U.S. executive. "There is some degree of sympathy
                                            for these points of view if
we can move the U.S. agenda forward." 
                                                 Some viewed the letter
as a possible watershed if it ultimately signals an
                                            easing of the rigid
polarization between business and labor that has paralyzed
                                            recent trade initiatives. 
                                                 "This is a big step,"
said Greg Mastel, director of global economic policy at the
                                            New America Foundation think
tank. "One of the things that's been holding up
                                            trade progress in recent
years is that there's been no domestic consensus." 
                                                 At the same time, the
letter sparked a backlash within the labor movement,
                                            which was already split by
the AFL-CIO's endorsement of Vice President Al Gore
                                            for next year's Democratic
presidential nomination. 
                                                 Some of the AFL-CIO's
largest members, including the Teamsters and the
                                            International Longshore and
Warehouse Union, want an immediate moratorium on
                                            trade talks and a complete
overhaul of the existing system. 
                                                 Whereas top U.S. labor
leaders are united in their opposition to child
                                            exploitation in Pakistan and
forced labor in military-run Myanmar, there are sharp
                                            divisions over how to push
for better working conditions at this month's WTO
                                            meeting. 
                                                 In a memo to AFL-CIO
officials around the country, Sweeney emphasized that
                                            he does not support all
elements of the U.S. trade agenda, such as efforts to
                                            open new service sectors to
trade. "Our critique of the WTO and the world trading
                                            system is both broad and
deep, and our demands in Seattle are strong," he
                                            declared. 
                                                 The AFL-CIO is pushing
the WTO to adopt standards for protecting workers'
                                            rights and the environment,
to conduct annual reviews on compliance by its
                                            members, to penalize
governments that fail to meet those standards and to set
                                            tough requirements for
prospective members such as China. 
                                                 Nonetheless, Bret
Caldwell, a spokesman for the 1.3-million-member
                                            Teamsters, said his union is
"very disappointed" at the AFL-CIO's decision to
                                            support a global trade body
that "in its five-year existence hasn't issued one
                                            labor-friendly decision." 
                                                 Labor's planned
protests have sent jitters through the Clinton administration,
                                            which once looked at the
Seattle meeting as a crowning moment for its
                                            now-beleaguered trade
policies. 
                                                 When the WTO begins its
four days of closed-door negotiating sessions inside
                                            the Washington State
Convention and Trade Center on Nov. 30, critics are
                                            planning to get their point
across with street theater, hold candlelight vigils and
                                            unfurl banners from downtown
skyscrapers. Their message: By transferring power
                                            to institutions such as the
WTO, governments are placing profits above their
                                            citizens' health, safety and
right to humane working conditions. 
                                                 The ILWU, whose members
work the docks from Alaska to California and
                                            Hawaii, has already
announced that its western Washington locals will walk off the
                                            job for eight hours as the
conference opens, in effect closing ports in Seattle,
                                            Tacoma, Bellingham, Hoquiam,
Anacortes, Port Angeles, Everett, Olympia and
                                            Poulsbo. 
                                                 Other ILWU locals on
the West Coast, including Long Beach and Los Angeles,
                                            are considering a similar
eight-hour "stop-work meeting," a maneuver the union
                                            says is allowed under its
contract. 
                                                 "We make our living off
trade, so we are in a unique position to make the case
                                            that we are not against
trade, we are for 'fair trade,' " said ILWU President Brian
                                            McWilliams. 
                                                 The AFL-CIO has
promised to bring tens of thousands of workers into
                                            downtown Seattle Nov. 30 for
a protest march and labor rally. But Sweeney's
                                            decision to work at least
partly within the system has jolted the labor movement. 
                                                 At the heart of this
rift is a fundamental disagreement over whether the WTO,
                                            a 134-member organization
dedicated to expanding trade, can be turned into a
                                            worker-friendly institution
or if such concerns should be directed toward a
                                            different entity, such as
the U.N.'s International Labor Organization. 
                                                 Under the U.S.
proposal, a WTO "working party" would consider how trade
                                            jibes with such concerns as
child labor, employment, social welfare and labor
                                            standards. 
                                                 Although the short-term
goal would be merely an assessment, emerging
                                            nations such as Malaysia and
India fret that such an effort would be the first step
                                            toward costly requirements
for their own workplaces. They resent the imposition
                                            of Western values and fear
that wealthier nations could use such requirements to
                                            restrict imports from poor
nations, which may view their cheaper labor as a
                                            competitive advantage. 
                                                 "It will almost
certainly become a protectionist device--maybe not in the
                                            beginning, but in the end,"
said Martin Khor, president of the Third World
                                            Network, an advocacy group
in Malaysia. Yet opposition to injecting labor
                                            standards into trade
negotiations is hardly limited to the Third World. Leaders in
                                            Japan, parts of Europe and
other developed regions have long argued that taking
                                            on such volatile issues
would doom trade groups such as the WTO and the
                                            Asia-Pacific Economic
Cooperation forum, which operate on consensus. 
                                                 Certainly, the issue
will influence the horse trading among nations clamoring
                                            for their own objectives as
the next major round of trade negotiations unfold in
                                            Seattle. 
                                                 "The U.S. is going to
have to pay something to developing countries if it is
                                            going to get this working
party," noted a WTO official. Similarly, emerging nations
                                            will be under pressure to
make concessions to the United States in return for U.S.
                                            support for their own goals,
such as easier access to richer nations for their
                                            exports.