Tagged: economy

A report by the Economic Policy Institute looked at the growing trade deficit between the U.S. and China and its effect on jobs.

The group found the trade deficit with China has been a "prime contributor to the crisis in U.S. manufacturing employment."

From the report:

Between 2001 and 2010, the trade deficit with China eliminated or displaced 2.8 million jobs, 1.9 million (69.2 percent) of which were in manufacturing. The 1.9 million manufacturing jobs eliminated or displaced due to trade with China represents nearly half of all U.S. manufacturing jobs lost or displaced between China’s entry into WTO and 2010.

The report finds that the number of Michigan jobs displaced by the trade deficit with China totaled 79,800. That accounts for 1.75 percent of total employment in the state in that time period.

Despite being a heavy manufacturing state, Michigan was not the hardest hit state by the trade imbalance.

From the report:

Jobs displaced due to growing deficits with China exceeded 2.2% of total employment in the 10 hardest-hit states (i.e., jobs lost or displaced as a share of total state employment): New Hampshire (19,700, 2.84%), California (454,600, 2.74%), Massachusetts (88,600, 2.73%), Oregon (47,900, 2.71%), North Carolina (107,800, 2.61%) Minnesota (70,700, 2.61%), Idaho (17,400, 2.54%), Vermont (7,800, 2.37%), Colorado (55,800, 2.30%), and Rhode Island (11,800, 2.24%).

The report concludes, "the U.S.-China trade relationship needs a fundamental change. Addressing the exchange rate policies and labor standards issues in the Chinese economy are important first steps."

Update 2:31 pm:

This story was clarified at 2:00 pm to say that the $5,000 bonus was for ratification of the contract.

Pay raises for entry-level workers, five-thousand dollar bonuses for ratification, and better profit sharing. Those are among the highlights of the four-year contract local UAW leaders will recommend to General Motors’ 48,500 hourly workers.

UAW President Bob King says the union bargained a “great framework” for all three Detroit automakers.

    "They’re in different states of financial health, different states of debt. We’re hoping that this country bounces back and the European situation gets resolved – they all could be impacted by that. And we think we’ve got an agreement that helps us get through those periods of time, because we didn’t add many fixed costs to this agreement."    

The tentative contract promises to add or save 6,400 workers. Nine hundred of those are at Michigan plants.

It also provides for a $5,000 dollar ratification bonus, and raises for entry-level workers. UAW President Bob King says those workers will also see generous health care provisions – including free emergency room and urgent care visits.

"What worker being hired at any employer today starts out with the kind of health care plan that workers hiring into General Motors will have? What workers have unlimited doctor visits, $25 co-pay? Nobody."

The contract also calls for $10,000 dollar bonuses for eligible employees who retire in the next two years. Skilled tradesmen who retire between November First and the end of March would qualify for additional $65,000 bonuses.

Ratification is expected at the end of next week.

Michigan Radio's Sarah Hulett is at the United Auto Worker's press conference in Detroit today.

She's reporting on some details of the UAW's new contract with General Motors:

• Entry level wages will be bumped up to $19.28/hr over the life of the contract plus a $5,000 ratification bonus.
• Unlimited doctor appointments with $25 co-pay.
• $10,000 bonus for eligible employees who retire within the next two years.
• Additional $65,000 bonus for skilled trades who retire between November 1, 2011 and March 31, 2012.
• Jobs will be added in Michigan at facilities in Warren, Saginaw and Romulus.

UAW President Bob King says the next target for negotiations has not yet been determined.

From the Associated Press:

Union leaders from General Motors factories around the country have endorsed a new four-year contract with the company.

They are recommending that GM's 48,500 factory workers approve the deal in votes during the next week.

The agreement reached Friday includes a $5,000 signing bonus and improved profit-sharing instead of hourly pay raises for most of the workers. About 2,400 entry-level workers will get raises. They now make $14 to $16 per hour, about half the pay of a longtime UAW worker.

Profit-sharing will be a minimum of $3,500 next year.

The union now will focus on negotiations with Chrysler, and Ford will be next.

Since Chrysler isn't making as much money as GM, workers there probably won't see as good of a deal.

LANSING, Mich. (AP) - Michigan lawmakers are renewing a push to require more businesses selling items over the Internet to collect the state's 6 percent sales tax.

Legislation dealing with the issue was detailed Tuesday at the state Capitol.

The Michigan Retailers Association says some out-of-state, online-only retailers use legal loopholes that allow them to avoid collecting state sales tax at the point of sale. The retailers association says that gives the online retailers an unfair price advantage and hurts Michigan businesses that have storefronts and collect the sales tax.

Bills to be introduced by Republican Rep. Eileen Kowall of Oakland County's White Lake Township and Democratic Rep. Jim Ananich of Flint would move online-only retailers under the same sales tax collection laws under which brick-and-mortar businesses operate.