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Dr. Raynor teaches finance at the State University of New York at Delhi, and is periodically a visiting professor at Universidad Catholica Santo Toribio De Mogrovejo in Peru. He has worked on a number of projects in other areas of Latin America, and was also a visiting professor in China. He is especially interested in international trade and labor issues, and has previous private sector experience in the banking industry.

As the G-20 Summit wrapped up in London, it was easy to see battle lines drawn between protectionist and free-trade advocates. Just as the world is going through a wrenching debate on how to address the global economic crisis, American Labor, on a more micro level, is facing a similar crossroad. Three companies in the news lately illustrate these crossroads and disturbing new labor trends:

1. IBM--Sending American Jobs Abroad via Outsourcing: Outsourcing is not new, and BNWW was a leader in discussing this trend from the beginning. Globally, labor has undergone unprecedented changes because of technology, the Internet, and improved educational systems around the world. While IBM has used these changes to maximize corporate profits, recently they have taken it to a new level:

--With plans to potentially outsource more jobs while seeking stimulus money from U.S. taxpayers.

--Pursuing patent initiatives for outsourcing software to profit even more and advancing the outsourcing trend. While the heavily scrutinized IBM abruptly withdrew the patent application, developments leading up to this says a lot.

It is unthinkable that IBM would engage in these activities when the American economy and American labor are in such a deep crisis.

2. Wachovia--Replacing American Workers with Foreign Workers: The use or abuse of H-1B visas by employers is also not a new problem, and has been well documented. Because it has been an ongoing problem for so long, however, it is even more disturbing that needed reforms are not in place. In many cases, corporations even force U.S. workers to train their own foreign replacements. Unfortunately, Wachovia is one more recent example of corporations bringing in foreign workers to replace American workers.

It is also unthinkable that Wachovia would engage in these activities when the American economy and the American worker are in such a deep crisis.

3. FedEx--Abuse of Domestic Workers: The current FedEx labor dispute involves the proposed Employee Free Choice Act (EFCA) which is now being debated in Congress. If passed into law, FedEx employees could potentially have the right to reorganize under the National Labor Relations Act (NLRA). If successful, labor representation most likely would come from the Teamsters. Currently, FedEx employees fall under the Railway Labor Act (RLA) because the company was originally formed as an airline, not a trucking company.

To discourage Congress from passing the bill, FedEx is threatening to cancel orders for cargo planes from Boeing worth billions of dollars. FedEx officials suggest the order cancellation would be necessary because of the adverse financial impact on the bottom line. In fact, their purchase contract for planes with Boeing even specifies a cancellation option should Congress change the law.

Labor advocates however, point out that employees at rival UPS, which was formed as a trucking company, already are under the NLRA umbrella and are represented by the Teamsters. Even UPS, with an obvious stake in the outcome, is in favor of the change so that FedEx does not have an unfair competitive advantage. After all, FedEx and UPS, for all practical purposes, are identical companies. Labor advocates also say that the potential order of cancellation with Boeing essentially amounts to blackmailing Congress at a time when the economy already is in crisis.

The FedEx case also is unthinkable in that they would engage in these activities when the American economy and American labor are having unprecedented problems.

Public Policy Considerations

There is a war on American workers, and they are losing badly. American workers are at the breaking point, sadly brought on by other Americans. Public policy officials need to urgently address the disruptive corporate activities, like the ones IBM, Wachovia, and FedEx are engaged in. Again, while these activities are not new and BNWW has covered them for years, the new levels are disconcerting at a time when American families are on the ropes.

What is the appropriate government response? Will Congress be able to stand up to FedEx's pressure knowing that the decision impacts not just FedEx workers, but Boeing workers and workers at their suppliers, such as General Electric with jet engines? What level of government intervention is appropriate? When will real reforms be initiated that address mass outsourcing? When will real reforms be in place that addresses H-1B visa abuses?

If urgent action is not taken, it will be too late for American families who are just trying to get by. Millions have already lost jobs and are NOT getting by. Those that still have jobs are going through a painful deleveraging process that will become even more difficult. They won't be able to survive if much of corporate America is allowed to continue on this path.

To provide needed relief for working Americans, Washington needs to re-focus priorities. It may be appropriate that Washington demands the blue-collar auto industry develop extensive restructuring programs for stimulus assistance. But bankers should have to do so as well. After all, who did more damage to the economy? Why does blue-collar GM have to go through so many hoops for relatively small stimulus relief--less than $30 billion--when so many banks, insurance companies, and other institutions don't? AIG alone received more than $170 billion. When will we see the CEOs at major banks removed, as the head of General Motors was? GM may have made mistakes, but they finally have products with a promising future. Not to mention that they actually produce something and that they actually use American labor.

The banking transgressions in the past year are astounding. After running their own institutions and the global economy into the ditch, they took unprecedented amounts of money from U.S. taxpayers. Even today we don't know where our taxpayer money went to fund the Troubled Asset Relief Program (TARP). Also, don't forget the lavish corporate trips and bonuses. All the while, American workers are asked--actually they are not even asked--to pay for these transgressions. Then, just to put icing on the cake, American workers pay the increased fees banks are charging them.

If all of this weren't enough, American labor takes it in the face yet again.More than 600,000 more jobs were lost just last month. Yet American workers and taxpayers will pay the bill for trillions of dollars--and who knows how many trillions--to restructure the economy that those in power destroyed.

Washington, please do your job and help the American worker NOW.