Machinists, Rep. Norcross Leading Charge for ‘Buy American’ Defense Expansion

An amendment championed by the IAM and U.S. Rep. Donald Norcross (D-NJ) that would dramatically increase domestically made procurement requirements in major defense programs has cleared a critical hurdle in Congress.

The IAM, North America’s largest aerospace defense union, has been pushing the increase for years in order to strengthen the defense industrial base and domestic supply chain while helping prevent vulnerabilities created by military products being made in China and other countries.

“Buy American policies serve the public good by targeting our tax dollars for the purchase of American-made products and services,” said IAM International President Robert Martinez Jr. “We must understand that the foundation of our industrial base lies with the skills and abilities of the American worker. Congressman Norcross’s amendment would help ensure that our tax dollars are used to support the U.S. workforce and the firms who employ them.” 

READ: Machinists Union letter supporting Rep. Norcross’s “Buy American” NDAA amendment

The amendment passed on a bipartisan vote during a House Armed Service Committee mark-up of the Fiscal Year 2022 National Defense Authorization Act (NDAA). The legislation would increase “Buy American” requirements for major defense programs from 55 percent to 60 percent upon the bill’s enactment. Requirements would further rise to 65 percent by 2024 and to 75 percent by 2029.

“I am proud to have fought for provisions that make America safer by investing in the American worker,” said Norcross. “This bill will put us on a path to build back better by increasing our domestic supply chain capabilities, strengthening our workforce, and giving our service members the tools they need to win the future fight.”

The number of Chinese suppliers in the U.S. defense industrial base has risen 420 percent since 2010, according to a report from the data analytics firm Govini.

Under Buy American defense procurement policy, Canadian produced military components are considered domestically made. The Norcross Buy American amendment retains a preference for Canadian-made military products.

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President Biden Honors Labor Unions, Essential Workers at White House

President Biden delivered a historic speech from the White House recognizing unions and essential workers for their sacrifices and courage in keeping America moving during the COVID-19 pandemic. The president honored the legacy of the late AFL-CIO President Rich Trumka and took a moment of silence to remember working people who have passed away from the virus.  

The president called for the passage of the Protecting the Right to Organize (PRO) Act, legislation that would repeal anti-worker “right-to-work” laws and encourage the formation of unions while expanding collective bargaining rights to more sectors of the economy. Biden also pushed for stronger “Buy American” rules, expanding elder and child care, and passing infrastructure investments and middle-class tax cuts through Congress.

Biden specifically mentioned Machinists Union members and other union members who have worked on the frontlines during the pandemic.

WATCH: President Biden honors labor unions at White House  

“President Biden has promised to be the most union-friendly president in our lifetime and he has kept his word,” said IAM International President Robert Martinez Jr. “The Biden-Harris administration continues to move a historic pro-worker, pro-democracy agenda that supports and grows the labor movement. Our members will continue fighting to help build back better for our nation’s aerospace, manufacturing, transportation, and all workers.”

“In my White House, labor will always be welcome,” said Biden. “When unions win, workers across the board win. Families win, communities win and America wins. And despite this, workers have been getting cut out of the deal for too long a time.” 

Biden’s pro-union address, which was preceded by speeches from U.S. Labor Secretary Marty Walsh and AFL-CIO President Liz Shuler, came after celebrating Labor Day with union workers in his home state of Delaware.

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Machinists Vow to Fight ‘Anti-Democratic, Anti-American’ Texas Voter Suppression Law

IAM International President Robert Martinez, Jr., is urging union members and allies to help unseat the “right-wing radicals” who spearheaded the new Texas state law that suppresses voter rights.

Republican Gov. Greg Abbott recently signed Senate Bill 1 into law after the Republican-led legislative passed it during a special session.

The new law sets restrictions such as banning 24-hour voting and drive-thru voting. The law also restricts officials from mailing unsolicited mail-in ballot applications and sets new requirements for those tasked with helping those with disabilities at the polls.

This is a blatant attempt by Abbott and the radical right to turn back the clock on voting rights when we should be making it easier to vote. 

The Machinists Union strongly pushed for the successful passage of the John R. Lewis Voting Rights Advancement Act of 2021 (H.R. 4) through the U.S. House of Representatives last month to fight back against laws just like this one. The legislation would restore key provisions of the Voting Rights Act of 1965 that John Lewis fought for, and put us back on a path toward racial equity in voting.

Martinez, a Texas native, tweeted for IAM members and our allies to lift up “by defeating right-wing radicals at the ballot box and in the courts.”

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The September Jobs Report Misses Employment Forecasts, Unemployment down to 5.2%.

The September Jobs Report Misses Employment Forecasts, Unemployment down to 5.2%.

The United States (U.S.) economy added 235,000 jobs in August of 2021, the lowest in seven months and well below forecasts of 750,000 as a surge in COVID-19 infections may have discouraged companies from hiring and workers from actively looking for a job.

 

Most jobs were created in professional and business services (+74,000), transportation and warehousing (+53,000), private education (+40,000), manufacturing with most of them coming in motor vehicles despite ongoing struggles to source parts, and other services (+37,000). Employment in retail trade declined over the month (-29,000) mostly because of food and beverage stores (-23,000) and building material and garden supply stores (-13,000). Employment in leisure and hospitality was unchanged.

 

Source: Analysis U.S. Department of Labor and Wells Fargo Securities

 

Overall, nonfarm employment has risen by 17 million since April 2020 but is down by -5.3 million, or 3.5%, from its pre-pandemic level in February 2020.

The standard, headline unemployment rate (U-3) dropped to 5.2 percent in August 2021, the lowest level since March 2020 and in line with market expectations, as the labor market continued its steady recovery following business re-openings in the US and despite reports of labor supply shortages and concerns over the lingering threat of the COVID-19 resurgence. The number of unemployed people fell by 318,000to 8.38 million, while employment levels increased by 509,000 to 153.15 million.  The broad or real unemployment rate (U-6) is at 8.90%, compared to 9.60% last month and 14.30% last year. This is lower than the long term average of 10.44%.

Headline and Real Unemployment Rates

Although the jobless rate remained well above the pre-crisis level of about 3.5 percent, experts believe that the rate should decline further due to strong economic activity and demand for labor

As indicated, the Delta surge is holding down job growth in the leisure & hospitality sector. After increasing by more than 300K for four straight months, employment growth was stagnant in August.

Unemployment Intensity is the product of the duration and the rate of unemployment.  The unemployment intensity is constructed by multiplying the unemployment rate for an index representing the average duration of unemployment, with the idea that unemployment becomes more intense when its duration increases.  As shown below unemployment intensity has increased since the end of the COVID-19 recession but appears to have leveled out and possibly shifting downward.

Unemployment Intensity Index .

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Machinists Union Makes Big Gains in the 2022 NDAA

The IAM successfully lobbied for the 2022 National Defense Authorization Act (NDAA) to fund military programs. Together, the programs support more than 100,000 IAM aerospace, defense, and shipbuilding jobs.

The final version of the NDAA included Buy American House-passed language, championed by the IAM and U.S. Rep. Donald Norcross (D-NJ). This provision will strengthen Buy American rules to help boost our domestic manufacturing sectors.

“Our union fought to enhance our nation’s military programs to improve U.S. national security and grow the number of high-skilled jobs for our members in the aerospace defense and shipbuilding industries,” said IAM International President Robert Martinez Jr. “We also applaud the efforts of Rep. Norcross to help strengthen our country’s defense industrial base and domestic supply chain by including the Buy American rules in the 2022 NDAA.”

Thanks to the IAM’s lobbying efforts, the 2022 NDAA authorizes funding for the following IAM-built and maintained programs:

  • Defense Spending top line:  The IAM supported, and the U.S. House of Representatives passed a $25 billion increase in the Department of Defense spending.  This House vote paves the way for $740 billion budget for the Pentagon next year since the Senate Armed Services Committee has already backed that spending level in its version of the bill.  This is $25 billion more than the $715 billion proposed by the administration’s budget request.
  • Increase in Buy American Requirement:The House passed IAM/Rep. Norcross’s championed language to increase the Buy American domestic content percentage requirement from 55% to 75% for all future Major Defense Acquisition Programs.  The language will gradually ramp up the percentage from 55% to 75% by 1/1/2029. 
  • F-35 program: The 2022 NDAA authorizes funding for 80 F-35 Joint Strike Fighters. The IAM Legislative team is aggressively lobbying the Senate to increase the number in its version for this vitally important defense program.
  • Rep Golden’s amendment for MYP Destroyer contract: The House passed IAM/Rep. Golden’s championed language to authorize a new multi-year procurement (MYP) contract to purchase 15 Flight III DDG-51 destroyers over 5 years beginning in 2023. With the current MYP contract set to expire in FY22, there was no scheduled ship procurement plan to ensure enduring workforce stability and skill retention. This new MYP contract is needed to ensure consistent funding for the DDG-51 program in order to properly equip our U.S. Navy and to promote the heath of the U.S. shipbuilding industry.
  • National Security Space Launches(NSSL): The NDAA also authorizes $1.4 billion for national security space launches. United Launch Alliance (ULA), with IAM members in AL, FL, and CA, is one of only two NSSL launch providers.

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Machinists Union Fighting For Historic Investments For Working Families and Critical Industries

WASHINGTON, Oct. 5, 2021 – Robert Martinez Jr., International President of the 600,000-member International Association of Machinists and Aerospace Workers (IAM), the largest aerospace, defense, and transportation union in North America, released the following statement in full support of the Bipartisan Infrastructure Bill and Build Back Better Act:

“The IAM was instrumental in helping pass the American Rescue Plan and other rescue packages to help keep our members employed and their families secure. But these were temporary fixes to a problem that needs a permanent solution. The IAM supports the passage of the Bipartisan Infrastructure Bill and the Build Back Better Act. Both pieces of legislation will provide historic investment for the airline, transit, aerospace, manufacturing, and other critical industries.

Build Back Better is transformative for families, with the Child Tax Credit, child care, home health care, paid family and medical leave, universal pre-K, workforce development, and more. Corporations have been on the receiving end of corporate tax cuts and other special giveaways for too long. We need legislation that will embrace a pro-worker, pro-democracy agenda that provides millions of working families the opportunity to better wages and benefits. 

“The infrastructure package will finally strengthen Buy America rules to help boost our domestic manufacturing sectors.   Our union fought to include the most significant federal investment in public transit and passenger rail since the creation of Amtrak. Our transportation sector will benefit through the modernization projects created through the robust funding provided in this infrastructure package. This investment will help our vital manufacturing and transportation sectors build back better.

“Our union is dedicated to reversing the trend of an economy that serves the wealthiest and most prominent corporations so that working families can live a better life with decent wages and benefits.”

The International Association of Machinists and Aerospace Workers (IAM) is among the largest industrial trade unions in North America and represents nearly 600,000 active and retired members in the manufacturing, aerospace, defense, airline, railroad, transportation, shipbuilding, woodworking, health care, and other industries. 

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