Oregon Fair Trade Campaign

For Immediate Release
October 3, 2008

Nearly 1-in-5 Oregon Jobs Are Vulnerable to Offshoring, Study Finds
Candidates Asked to Support Policies that Keep Jobs in Oregon

Portland, OR — Nearly one-and-five Oregon jobs are vulnerable to being sent overseas, according to an analysis by the Economic Policy Institute (EPI) released in-state today by the Oregon Fair Trade Campaign. At least 279,000 Oregon jobs—or 18.3% of the state’s total employment—are considered “offshorable.” Labor advocates say that the findings highlight the need for new trade policies that limit offshoring.

“Oregon has already lost tens of thousands of jobs as a result of failed policies like the North American Free Trade Agreement (NAFTA),” said Arthur Stamoulis, director of the Oregon Fair Trade Campaign. “The continued loss of Oregon jobs is not inevitable. If elected officials support a change in trade policy, it will help keep more good-paying jobs in state.”

On a national basis, the EPI data show that workers whose jobs are most vulnerable to offshoring typically have a four-year college degree and work in positions paying an average of $8,000 more per year (or 14% more) than non-offshorable jobs. A wide array of occupations is cited as offshorable, including computer programmers, actuaries, graphic designers, research scientists, bioengineers financial analysts and more. A ranking of the top 100 occupations must vulnerable to offshoring is available online at: http://www.citizen.org/trade/offshoring/articles.cfm?ID=17454

“Oregon has watched its manufacturing base steadily move abroad for a number of years. Only recently have we seen this much wider range of occupations also move overseas,” said Madelyn Elder, president of Communications Workers of America Local 7901. “Oregonians need to come together and demand solutions from our political candidates before the only employment options left in this state are at Wal-Mart.”

To prevent the offshoring of further Oregon jobs, the Oregon Fair Trade Campaign recommends that Congressional members add their names to fair trade legislation first introduced this June called the Trade Reform, Accountability, Development and Employment (TRADE) Act. To date, Rep. Peter DeFazio (D-4^th) is the only Member of Congress from the Oregon delegation who has cosponsored the legislation.

The TRADE Act establishes a process for reviewing and renegotiating existing trade pacts, such as NAFTA and the World Trade Organization. It also establishes new criteria for what must be and cannot be included in future trade deals, and describes the key elements of new trade policymaking procedures. The legislation is supported by labor, environmental and family farm organizations across Oregon and the nation.

In 2007, Princeton economist and former Vice Chairman of the Federal Reserve, Alan Blinder, published a landmark study examining the tasks performed in hundreds of occupations and ranking them on an “offshorability index.” While many production jobs have long been recognized as offshorable, Blinder’s methodology pointed to the susceptibility of relatively high-paying service sector jobs to offshoring. Particularly vulnerable are jobs that do not require on-site presence, so that the tasks involved can be accomplished by phone and over the Internet.

The analysis conducted by EPI applies Blinder’s methodology and assumptions, using occupations categories and job numbers for Oregon. Blinder was attempting to estimate the number of jobs that were potentially offshorable nationwide, and found that as many as 38 million American jobs could be offshored in the foreseeable future. The EPI analysis provides numbers specifically for the state of Oregon.

“It is the definition of insanity for Congress to keep passing the same type of trade agreement over and over again, and expect different results,” said Stamoulis. “Politicians like Gordon Smith need to own up to the harm free trade agreements have caused this state. If they continue on with business-as-usual, hundreds of thousands of Oregon families could eventually find themselves out of work.”

For Immediate Release
August 13, 2008

NEW ANALYSIS:
Trade Agreements Cost Oregon Over 10,000 Forest Products Jobs
Southern Oregon Is Hardest Hit with Over 3,500 Forest Products Jobs Lost

Medford, OR — A new analysis of U.S. Labor Department data released today by the Oregon Fair Trade Campaign finds that Oregon has lost at least 10,521 forest products jobs since 1994 as a result of U.S. trade agreements.This analysis indicates that trade policies are responsible for the majority of forest products jobs lost in Oregon since the mid-1990s.Southern Oregon is the region of the state that has been hardest hit by this trend, with a combined 3,511 or more forest products jobs lost in Douglas, Klamath, Josephine and Jackson Counties.

“The data shows that free trade agreements have contributed dramatically to recent job loss in the state’s forest products industries,” said Arthur Stamoulis, director of the Oregon Fair Trade Campaign.“The important thing to note is that this job loss isn’t inevitable.It’s the result of trade policies put in place by Congress.”

“Communities across the country and right here southern Oregon have been hit hard by layoffs resulting from the nation’s failed trade policies,” said State Representative Peter Buckley (D-Ashland). “Oregon needs strong, family-wage jobs. Unfortunately, Senator Smith and Congressman Walden have repeatedly undercut efforts at economic development in the region by voting in favor of unfair, unbalanced job-killing trade deals.”

“The worst part is that since we’ve been laid off,we’re not making the same money as before. This has happened throughout the area with other layoffs and closures, and has had a major impact on the local economy,” said Brandon Maupin, of Merlin, who was laid off at Timber Products in Grants Pass in late 2007.

Data for this analysis comes from petitions certified by the U.S. Department of Labor as qualifying for Trade Adjustment Assistance (TAA).The TAA program is designed to assist individuals who have lost work as a result of increased imports from, or shifts in production to, countries with which the United States has a trade agreement.The analysis looked at petitions from the forestry, timber, wood products, pulp and paper industries.

“Politicians who vote in favor of free trade agreements often act as if retraining alone is the answer.It isn’t,” said Gregory Pallesen, vice president of the Association of Western Pulp and Paper Workers.“Job retraining programs can be beneficial for individual displaced workers, but on the whole, these programs are inadequate if the jobs being shipped overseas aren’t replaced with long-term, new jobs that provide equal pay and benefits.Unfortunately, many of the jobs being lost in Oregon’s forest products sector simply aren’t being replaced.Just look at the financial crisis most Oregon counties are facing for evidence of that.”

Douglas County lost the most forest products jobs in the state as a result of trade agreements — at least 1,230.Klamath County lost the second most — at least 1,094.Josephine County lost at least 610 and Jackson County at least 577.

The voting records of most Members of Congress representing southern Oregon has encouraged trade-related job loss.Senator Gordon Smith and Congressman Greg Walden have consistently voted in favor of free trade agreements that have hurt Oregon’s forest products industries.They both received a 0% “fair trade” score from the Oregon Fair Trade Campaign.Senator Ron Wyden also received a low 33% “fair trade” score.Congressman Peter DeFazio is the only Member of Congress from Oregon to consistently vote against free trade agreements.He received a 100% “fair trade” score.

Free trade agreements cause job loss in Oregon’s forest products sector by removing tariffs on imports, thus forcing local businesses to compete with companies benefiting from the weak labor and environmental standards, as well as direct and indirect government subsidies, often found abroad.The Oregon Fair Trade Campaign recommends new legislation called the Trade Reform, Accountability, Development and Employment (TRADE) Act as beneficial to Oregonians employed in the forest products industry.The TRADE Act would:

• Enable U.S. customs officials to block the importation of illegally-logged timber and products made from illegally-harvested wood
• Enact strong and enforceable labor and environmental standards that would be applied to the production of any goods imported into the United States
• Include “anti-dumping” provisions that would allow the U.S. to reestablish tariffs on imported products that receive subsidies from foreign governments

“Oregon’s forest products sector doesn’t have to suffer further declines.Trade policies approved by Congress got us where we are today, and a new model for trade could help to turn things around,” said Stamoulis.

A complete copy of the Oregon Fair Trade Campaign’s “Analysis of Trade-Related Job Loss in Oregon’s Forest Products Sector” is available at: https://www.citizenstrade.org/ctc/oregon/files/2008/08/ForestJobLoss.pdf

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COMMENTS FROM EUGENE:
“Lane County is one of many across the state that has been hit hard by layoffs and plant closures caused by unfair trade agreements,” said State Representative Paul Holvey (D-Eugene). “Congress needs to stop expanding the failed trade agreements of the past, and get to work creating trade policies that actually benefit working Oregonians. Expanded trade can be a good thing, but it shouldn’t have to come at the expense of family-wage jobs in Lane County. Congressman DeFazio gets this issue, but otherslike Senator Smith continueto voice their support for the Bush administration’s job-killing trade deals.”
“The consequences of the loss of these family wage paying jobs to Oregon’s rural timber dependent communities cannot be overstated.Every dollar of lost wages means fewer jobs for forestry contractors, and the hundreds of other businesses that depend on both the forestry sector directly and indirectly through the wages spent by workers,” said Rod Kelty, director of the IAMAW’s Woodworkers Department.“Many forest products imported into the U.S. are derived from illegally-harvested logs and from forests not managed to the same rigorous standards as those in Oregon.We cannot continue to promote trade policies that shift environmental costs — and promote deforestation and the devastating effect that has on climate change — to tropical countries where both human and natural resources are treated as if they are worthless.”

COMMENTS FROM ROSEBURG:
“There’s no good solid ground to stand on.The community is falling down more and more with the wood industry — and that’s what we pivot around, the wood industry itself, and it’s falling apart,” said Larry Durfee, of Roseburg, who lost his 22-year job at Roseburg Forest Products when his mill closed due to increased imports.“I’ve worked all my life and will have nothing to show for it.You have no security, no benefits.You’re just working from day to day and existing.And hoping that something awful doesn’t happen.”