What the One-Percent Heard at the State of the Union

By SHAMUS COOKE | CounterPunch | February 19, 2013

When President Obama speaks, most Americans hear what he wants them to hear: lofty rhetoric and a “progressive” vision.   But just below the surface the president has a subtly-delivered message for the 1%, whose ears prick up when their buzzwords are mentioned.

Obama’s state of the union address was such a speech – a pro-corporate agenda packaged with chocolate covered rhetoric for the masses; easy to swallow, but deadly poisonous.

Much of Obama’s speech was pleasant to the ears, but there were key moments where he was speaking exclusively to the 1%. Exposing these hidden agenda points in the speech requires that we ignore the fluff and use English the way the 1% does. Every time Obama says the words “reform” or “savings,” insert the word “cuts.”

Here are some of the more nefarious moments of Obama’s state for the union speech:

“And those of us who care deeply about programs like Medicare must embrace the need for modest reforms [cuts]…”

“On Medicare, I’m prepared to enact reforms [cuts] that will achieve the same amount of health care savings [cuts] by the beginning of the next decade as the reforms [cuts] proposed by the bipartisan Simpson-Bowles commission.”

This ultra-vague sentence was meant exclusively for the 1%.   What are some of the recommendations from the right-wing Simpson-Bowles commission? Obama doesn’t say. Talking Points Memo explains: 

-Force more low-income individuals into Medicaid managed care.

-Increase Medicaid co-pays.

-Accelerate already-planned cuts to Medicare Advantage and home health care programs.

-Create a cap for Medicaid/Medicare growth that will force Congress and the president to increase premiums or co-pays or raise the Medicare eligibility age (among other options) if the system encounters cost overruns over the course of 5 years.

There were many other subtly-delivered attacks on Medicare in Obama’s speech, all ignored by most labor and progressive groups, who clung tightly to the “progressive” smoke Obama blew in their face.

Obama’s speech also included a frightening vision of a national privatization scheme to previously publicly owned resources. But it was phrased so inspirationally that only the 1% seemed to notice:

“I’m also proposing a Partnership to Rebuild America that attracts private capital [wealthy investors] to upgrade what our businesses need most: modern ports to move our goods; modern pipelines to withstand a storm; modern schools worthy of our children…we’ll reward schools that develop new partnerships with colleges and employers [corporations]…”

Obama’s proposal plans to “rebuild America” in the image of the wealthy and corporations, who only put forth their “private capital” when it results in a profitable investment; resources that previously functioned for the public good will now be channeled into the pockets of the rich, to the detriment of everyone else.

Allowing the rich to privatize and profit from public education and publicly owned infrastructure (ports and pipelines, etc.) has been a right-wing dream for years. This will result in massive user fees for the rest of us, while further dismembering public education, which Obama’s ill-named Race to the Top education reform is already successfully accomplishing.

Obama’s speech also put forth two massive pro-corporate international free trade deals, which would further drive down wages in the United States:

“We intend to complete negotiations on a Trans-Pacific Partnership [a massive free trade deal focused mainly on Asian nations]. And tonight, I am announcing that we will launch talks on a comprehensive Transatlantic Trade and Investment Partnership [free trade deal] with the European Union – because trade that is free and fair across the Atlantic supports millions of good-paying American jobs.”

While praising free trade Obama disarmed labor and progressive groups by throwing in the meaningless word “fair.”

Lastly, Obama’s drone assassination policy was further enshrined in his speech. Drone assassinations are obvious war crimes — see the Geneva Convention — while also ignoring that pesky due process clause — innocent until proven guilty — of the constitution.

But Obama said that these programs will be “legal” and “transparent,” apparently good enough to keep most progressive groups quiet on the issue.

There were plenty of other examples of sugar-coated poison in Obama’s speech. It outlined a thoroughly right-wing agenda with no plan to address the jobs crisis — sprinkled with pretty words and “inspiring” catchphrases.

Some labor leaders and “progressive” groups seem dazzled by the speech. President of the union federation, AFL-CIO, Richard Trumka, praised Obama’s anti-worker speech:

“Tonight President Obama sent a clear message to the world that he will stand and fight for working America’s values and priorities. And with the foundation he laid, working families will fight by his side to build an economy that works for all.”

And here is the real problem; as President Obama follows in the footsteps of President Bush, labor and progressive groups have found their independent voice stifled. The close ties between these groups and the Democratic Party have become heavy chains for working people, who find themselves under assault with no leadership willing to educate them about the truth, let alone organize a national fightback to win a massive jobs-creation program, prevent cuts to social programs, and fully fund public education. Obama’s second term will teach millions these lessons via experience.

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org) He can be reached at shamuscooke@gmail.com

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Colombia and Guatemala Again Ranked 1st and 2nd in Murders of Trade Unionists

USLeap | June 6, 2012

In its 2012 Annual Survey of Violations of Trade Union Rights released June 6, 2012, the International Trade Union Confederation found that Latin America remains the most dangerous region of the world for trade unionists, with Colombia again leading the world, followed by Guatemala.

The ITUC says 29 trade unionists were reported murdered in Colombia in 2011, with 10 more in Guatemala, together accounting for a bit over half of the 76 trade unionists reported murdered in 2011.  Colombia’s share of total murders dropped significantly, however, reflecting a decreased in 2010 murders of 51, representing 55% of the 92 trade unionists murdered in 2010.

Ironically, Colombia and Guatemala are also the two countries in Latin America that have been at the heart of U.S. policy on worker rights and Free Trade Agreements, with the Obama Administration pushing forward with implementation of the Colombia FTA in mid-May despite insufficient progress on worker rights while continuing to deal with a CAFTA (Central America Free Trade Agreement) labor complaint on Guatemala filed over four years ago that has yielded little progress even as violence against Guatemala unionists has escalated.

In a welcome and some say historic development, the conservative Guatemalan agribusiness sector has called on its own government to investigate and prosecute those responsible for the violence that has been directed at the country’s largest union, Sitrabi, which represents Del Monte banana workers and is a filer of the CAFTA labor complaint.  Sitrabi reports that seven members of its union members have been murdered since April 2011.  The Camara del Agro released its remarkable letter [ English translation here] in late May; no response from the government has been reported as yet.

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The Path of the Free Trade Agreement between Colombia and the US

By Ariela Ruiz Caro | Americas Program | June 1, 2012

Eight years after negotiations began in May 2004, the U.S.Colombia Free Trade Agreement (FTA) came into force on May 15.

Negotiations began together with the four member countries of the Andean Community that are beneficiaries of the Andean Trade Promotion and Drug Eradication Act (ATPDEA), which permits the entry of products not traditionally tariff-free into the U.S. market. One of Colombia’s central reasons for the FTA lay in ensuring that such tariff preferences were made permanent, since ATPDEA officially expired on December 31, 2006.

Businesses that exported under this program—especially in the textile and floriculture sectors in the case of Colombia—pushed hard for the FTA. They believed that it would allow them to gain competitiveness against other countries that did not enjoy similar preferences, and to be on equal terms with those who already had them.

The governments sought to shield important aspects of economic policy—like the treatment to foreign investment, liberalization of the services sector and strengthening intellectual property protection, among others—against the probable intent that a new administration would try to change them. The consolidation of economic liberalization would, according to authorities, attract foreign investments that generate jobs.

In this evaluation, the Andean governments dismissed the fact that tariffs are not currently the main barriers to access to industrialized country markets. They also did not consider that as the United States continued to sign FTAs such with other countries, as it was clear they would, the Andean region would lose its advantages.

Indeed, the U.S. government, as well as the European Union and Japan, use free trade agreements as a way to establish trade and economic rules that in the multilateral World Trade Organization cannot be implemented because of the resistance of a significant number of developing countries.

The Trade Act or Trade Promotion Authority (TPA) of 2002-which authorized the United States government to negotiate FTAs with other countries, says that the expansion of international trade “is vital to national security. Trade is critical to the country’s economic growth and leadership in the world.”

The same act states that trade agreements maximize opportunities for critical sectors of the U.S. economy, such as information technology, telecommunications, basic industries, capital equipment, medical equipment, services, agriculture, environmental technology and intellectual property. The TPA indicates that trade creates new opportunities for the United States, thus preserving its economic, political and military strength.

The process of meetings to achieve the FTA was extensive. What started as a joint negotiation (Colombia, Ecuador and Peru, with Bolivia as an observer) ended with individual negotiations. Peru was the first to secure the signatures of presidents Toledo and Bush in December 2007 and came into force in February 2009, while Bolivia and Ecuador rejected the FTA following changes in their governments.

Venezuela withdrew from the Andean Community in April 2006 and applied for incorporation into Mercosur, arguing that “the free trade agreements by Colombia and Peru with the United States of America have formed a new legal body that attempts to assimilate the rules of the FTA within the Andean Community, changing de facto its nature and original principles.”

While the presidents of Colombia and the United States, Uribe and Bush signed in 2006, the U.S. Congress did not ratify the act because of complaints from some quarters in Congress and civil organizations that pointed to violations of human rights and labor laws. After lengthy negotiations, and commitments made by acting President Santos, the act was ratified by Congress in October 2011. Meanwhile, the tariff advantages achieved under the ATPDEA were renewed annually.

Myth of the “special relationship” under FTA

With the enforcement of the FTA, Colombian authorities hope to convert the country into an export platform for those countries that “do not enjoy privileged relations with this large market, such as Argentina, Ecuador, Brazil and Venezuela.” Government officials from Peru and Chile had previously expressed the same hope.

However, experience shows that these hopes did not become reality for Colombia’s neighbors. Sales to the U.S. market have lost momentum. In Peru, for example, exports to the United States fell 4% in 2011 over the previous year, although the total exports increased by 28% in that period.

The United States dropped from being the top destination for Peruvian exports, to the third–after China and Switzerland. In 2006 24.2% of Peruvian exports were destined for the U.S. market, in 2011 they were only for 12.7%. By contrast, imports from the United States, which in 2006 represented 16.4% of total imports, in 2011 increased to 19.5%. The U.S. has managed to reverse its trade balance with Peru, which has gone from a surplus favorable to Peru of $3.26 million in 2006 to a deficit of $1.52 million.

It is true that in this evolution the [exchange rates] of local Latin American currencies against the dollar have had a major impact, but the slowdown in growth and consumption in the United States does not predict a scenario favorable for emphasizing exports to the United States.

In his speech to the State of the Union in January this year, President Obama proposed a recovery of the economy based on boosting local manufacturing. He proposed tax cuts to companies that invest in the country, tax increases to those established abroad and measures to increase U.S. global market share, creating “millions of new customers for U.S. products in Panama, Colombia and South Korea.”

Colombia should be asking itself: Who really benefits from the Free Trade Agreement?

Ariela Ruiz Caro is an economics graduate of the Humboldt University in Berlin, with an MA in Economic Integration from the University of Buenos Aires. She does international consulting on trade, integration, and natural resources for ECLAC, the Latin American Economic System (SELA), the Institute for the Integration of Latin America and the Caribbean (INTAL), and other organizations. She worked for the Comunidad Andina from 1985 to 1994, as an advisor to the Commission of Permanent Representatives of MERCOSUR from 2006 to 2008, and is a writer for the Americas Program.

Translated by Yasmin Khan

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Progress or Promises? Free Trade and Labor Rights in Colombia

By James Bargent | Upside Down World | April 16, 2012

Rodolfo Vecino has a death sentence on his head. He has been told he will be kidnapped, tortured and his family will be murdered. Already this year one of Vecino’s colleagues has been killed – in January, Mauricio Arrendondo and his wife Janeth were gunned down in front of their children.

Vecino is the president of Colombian oil workers union (USO), which was last year declared a “military target” by right-wing paramilitaries for its campaigns against what the union says are the abusive labor practices of Canadian oil giant Pacific Rubiales. The union’s campaign began last summer; just two months after Colombia signed a Labor Action Plan (LAP) with the U.S. pledging to tackle the very practices used by Rubiales and the type of anti-union violence that USO has suffered. The signing of the pact unblocked negotiations over the Free Trade Agreement (FTA) between the countries, which had stalled over Colombia’s abysmal labor rights record.

A year on, and at last weekend’s Summit of the Americas, the U.S. declared it was satisfied that Colombia had complied with the LAP and was enacting the reforms called for. The decision opens the way for full implementation of the FTA in May, even as unions and human rights groups in both countries continue to accuse the U.S. of “rewarding promises not actions”. Meanwhile, USO’s campaign against Rubiales continues and it is far from an isolated case. Unions across Colombia maintain they face the same problems of violence, worker abuse and anti-union practices, all committed with seeming impunity.

Disposable labor

Protests against Rubiales began after workers at the company’s Puerto Gaitan site contacted USO and described how 12,000 sub-contracted workers – the overwhelming majority of the workforce – were enduring low pay, appalling conditions and instability while being denied the right to bargain collectively and associate freely.

Ending the abusive sub-contracting system commonly used in Colombia was one of the principal aims of the LAP. The practice began in the late 70s, when businesses began to take advantage of the fact that many of Colombia’s labor regulations did not apply to worker cooperatives. Companies fired their entire workforce then forced workers to sign on with contractors calling themselves cooperatives. As the workers were then classified as temporary employees and could be laid off without cause, the cooperatives forced them to accept whatever pay and conditions were on the table. It was also a useful tool for preventing unionization as any worker who began organizing or agitating could be immediately fired. “They lost their rights, they lost money [and] they lost their working stability,” said Andres Sanchez from Colombia’s National Union School (ENS). The practice continues today, utilizing Colombia’s army of the unemployed and underemployed as ready replacements for sacked workers.

The LAP called for Colombia to enforce pre-existing but widely ignored legislation banning the cooperatives. However, as the Rubiales workers testified, in many sectors little has changed. Because the cooperatives are now banned, most of the contractors have simply changed names and become Simplified Stock Companies or Temporary Service Companies. “The phenomenon continues the same,” said Sanchez. “It is the same dynamic, they do the same things, workers [still] can’t demand that they benefit from their labor and not the third party,” he added. According to Sanchez, over 2 million workers in Colombia are still employed through these sub-contractors.

In Puerto Gaitan, the sub-contracted Rubiales’ workers have been forced to accept what Rodolfo Vecino called, “truly humiliating and poverty stricken” conditions. “They don’t have the conditions of a dignified life, they don’t have dignified salaries, they don’t have contracts that genuinely give the workers respectable levels of stability,” he said.

The workers have also testified to being pressured and threatened because of their association with the union and being told they would not be employed again while they were still members. “Although I am aware of my rights,” said one worker in a letter to USO, “in this case my need to survive and stay in work is more important.”

The ENS and USO both say they have persistently informed the government of the continued use of the cooperative style sub-contracting but little action has been taken despite the harsh penalties now demanded by law. So far, one company has been hit with a $6.5 million dollar fine over its use of contractors in the African palm sector. However, the fine was only imposed after a 107-day strike and came a week before Colombia’s labor minister traveled to the U.S. to discuss progress on labor rights. According to Sanchez, several months later and the fine has yet to be paid.

The paramilitary right and anti-union violence

After five months of strikes, blockades, occupations and violent clashes between riot police and protesters in USO’s confrontation with Pacific Rubiales, Rodolfo Vecino announced he had been threatened by four men claiming to be from the Auto-defensas (Self-defense forces). According to Vecino, the men told him he had been “sentenced” because USO’s confrontation with Pacific Rubiales made him an “obstacle to development.”

The term Auto-Defensas refers to the United Self-Defense Forces of Colombia (AUC), an umbrella group for Colombia’s right-wing paramilitary movement that controlled vast criminal networks and infiltrated the core of Colombia’s political and economic systems. Its stated mission was to combat Colombia’s leftist guerrilla groups, something it did in part by waging a dirty war against “guerrilla collaborators” – members of leftist political parties, community organizers, human rights workers and unionists. From 1986–2011, nearly 3000 unionists were murdered, and although most of the cases remain unsolved, in Colombia there is little doubt that paramilitary groups such as the AUC were responsible for the overwhelming majority of the killings.

The AUC officially demobilized in 2006 after negotiations with the government of Alvaro Uribe. However, the much criticized process gave rise to a new wave of illegal armed groups. These new organizations mostly consist of former mid-level AUC commanders and foot-soldiers that either never demobilized or simply re-enlisted after demobilization. For the most part they no longer fight the guerrillas – in some cases they even collaborate with them – but instead concentrate on drug trafficking and maintaining the AUC’s criminal networks and commercial interests. However, the end of the ideological war between the paramilitaries and the guerrillas did not lead to a significant drop in anti-union violence and Colombia remains by far and away the most dangerous place in the world for unionists.

According to Vecino, three of these groups operate in the same areas as USO – the Rastrojos, the Urabeños and the Popular Revolutionary Anti-terrorist Army of Colombia (ERPAC). He believes the continuing violence against unions is because of the links between businesses and the paramilitaries. “We believe there are links in the zone,” he said. “Today there are no political lines of definition of these groups but interests around drug trafficking [and] they sell themselves to the highest bidder,” he said. “If [the company] gives them money it wouldn’t be the first time multinationals have associated with paramilitaries or common criminals to strike against the union sector.” Vecino also claimed that some of the cooperatives have ties to armed groups and are used to launder drug money.

Pacific Rubiales has adamantly denied any contact with paramilitary groups. Jorge Rodriguez, the company’s head of corporate affairs, told news website Colombia Reports: “We are very sorry for the USO union. We reject any type of threat, any type of intimidation, not only to trade unionists but to anyone in the country.”

Andres Sanchez agrees with the theory that the new groups continue to act as the armed wing for powerful commercial interests, pointing to how Chiquita bananas and Coca Cola have been implicated in the murder of unionists. “It is a culture where some businesses have used violence as a way of solving labor relation problems,” he said. “In Colombia, the links between paramilitaries and business have not yet been uncovered.”

For most American politicians and unionists, anti-union violence was the biggest obstacle to the passing of the FTA with Colombia and curbing that violence the LAP’s greatest promise. In the first year of the plan, 27 unionists were murdered and 2 disappeared, according to the ENS. While that remains the highest murder rate for unionists in the world by some distance, it does represent a significant reduction; in 2010, 51 unionists were murdered and 7 disappeared. However, Andres Sanchez believes the drop in homicides does not tell the whole story. “The situation with the violence has shown changes in its logic,” he said. “Now, it is not necessary to murder a unionist to successfully freeze a union. We have seen that threats, injuries and displacement have increased … homicides have gone down a bit [but] the situation persists.”

In the LAP, the Colombian government pledged to increase protection for unionists by broadening the coverage of its protection program, clearing the backlog of applicants for the program and speeding up the application process. According to the U.S. government this is exactly what it has done. However, while the unions acknowledge there have been some improvements, they remain critical. “They say ‘no one in the program has been killed,’” said Sanchez. “So we say the program is badly designed, because they kill the unionists who aren’t in the program.”

The unions complain that the protection program excludes too many people and that the Colombian authorities have cleared the backlog and sped up the process partly by rejecting more people more quickly. According to Sanchez, this has involved turning down unionists who have received death threats. “They say that if they threaten someone it is a salvation because generally, the ones who are murdered have not been threatened, [and] the threat is to silence someone so it is not necessary to take measures after,” he said.

The approach has had a serious impact on USO leaders. Last August, USO received a letter informing them that protection programs for 23 leaders and a number of regional offices would either be terminated immediately or only extended temporarily. Three of those leaders were involved in organizing in Puerto Gaitan.

The LAP also pledged to tackle the impunity enjoyed by those responsible for the anti-union threats and violence. Less than 10% of the more than 3000 cases of murdered unionists have resulted in convictions. Many of those convictions came not from successful investigations but from confessions by paramilitary killers and, while the perpetrators of the crimes identified themselves, the intellectual authors remained hidden.

In 2007, the Attorney General’s Office set up a specialist sub-unit dedicated to anti-union violence. However, of the 195 murders that took place between the start of the sub-unit’s operations and May 2011, only 6 resulted in convictions. The unit did not obtain a single conviction for the 60 homicide attempts, 1,500 threats and 420 forced displacements in the same period.

The prosecutor’s office’s shortcomings in investigating anti-union violence were supposed to be addressed by 15 measures in the LAP, ranging from assigning more full time investigators to the unit to establishing victims assistance centers. As Congress approved the FTA in October, American union AFL-CIO reported that all but three of the obligations had either not been met, had been met insufficiently or there was no evidence of progress.

Progress for labor or for free trade?

Although he believes the LAP has failed to significantly improve the labor rights situation in Colombia, Andres Sanchez says the plan was an important step. “Yes, [the LAP] was to facilitate the unfreezing of the FTA,” said Sanchez, “but it was also a serious attempt.” However, he thinks the LAP will not be effective unless the government does more to involve unions in the process. “They are important measures,” he said, “expensive measures that could be effective but with this great vacuum of not taking into account the unions, they are measures that could fail.”

In the U.S, the implementation of the LAP has been monitored by the AFL-CIO, which has been critical of the government for using it to push through the FTA. “We don’t think the plan was sufficient to accomplish the goals but we do think it was a step in the right direction, a step towards meaningful change,” said the AFL-CIO’s Celeste Drake. “Unfortunately, with the continued violence against unionists and too little progress on cooperatives and other practices like collective pacts [worker agreements used to sideline unions], it is far too soon for the US government to declare victory on the LAP and move ahead on the FTA. Colombian workers will lose whatever leverage they have to make real progress if the US moves too quickly.”

On the front line of the struggle against the violence and abuse suffered by Colombian workers and unionists, Rodolfo Vecino says he has seen very little change since the LAP came into force. “At the moment it is innocuous,” he said. “It doesn’t matter what is written there, they are dead words, they don’t have life because there isn’t anyone who is putting it into place.”

James Bargent is a freelance journalist based in Colombia. See jamesbargent.com

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