Automotive Industry Trends News

Seoul, South Korea, Tuesday, May 01, 2007:

1. The Korean Metal Workers’ Union (KMWU), representing over 150,000 automotive, shipbuilding, steel, and other metal industry workers in South Korea, and the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), representing over one million active and retired workers in the United States, stand together in strong opposition to the proposed Korea-U.S. Free Trade Agreement (KORUS FTA).

2. KMWU and UAW firmly call on the Korean National Assembly and the U.S. Congress to reject the KORUS FTA. With the conclusion of the FTA negotiations, many commentators have framed the discussion largely in terms of a worker “zero sum game,” by focusing on how much and how quickly each nation’s tariffs would be reduced. More importantly, the FTA will lead to an acceleration of capital mobility and financial speculation, thereby pitting American workers against Korean workers in unlimited restructuring and driving down wages, employment stability and working conditions.

3. KMWU and UAW have no illusions about the impact of the KORUS FTA on our respective memberships. In Korea, the IMF conditionality regime imposed on our country after the Asian Economic Crisis has demonstrated to us that such policies have acted to destroy jobs through restructuring instead of creating new employment. Neoliberal policies have given corporations free rein to disinvest and cemented the rights of speculative capital while flexibilizing work. At the same time, these policies have created a permanent “irregular” or “temporary” workforce and commercialization or privatization of public goods, thereby deepening social inequality and poverty.

4. In the United States, our experience with the North American Free Trade Agreement (NAFTA) has shown us the disastrous consequences of a free trade agreement lacking in strong and enforceable labor and environmental standards. When NAFTA was implemented, U.S. tariffs on cars and most auto parts were eliminated immediately. As a result, auto companies dramatically reduced their production of vehicles and parts in the United States and Canada. At the same time, wages and working conditions for Mexican workers were severely undermined. KMWU and UAW are deeply concerned that this same destructive scenario would occur if the KORUS FTA is adopted.

5. Yet, our respective governments failed to carry out a full evaluation of the likely economic and social impact that the proposed KORUS FTA would have on workers—no assessment was made as to its probable impact on worker rights, employment, wages and working conditions, public services, including health care and education, and/or cultural diversity. The ILO Declaration on Fundamental Principles and Rights at Work was once again ignored in this hastily negotiated deal.

6. KMWU and UAW have agreed to coordinate our opposition to the proposed KORUS FTA. We are committed to working together to ensure that this agreement is not adopted or implemented. On this May Day, KMWU and UAW reaffirm our will to succeed and to build upon the gains achieved in the past. Autoworkers have conviction that an alternative world is possible and we will continue to fight together to ensure a better future for all generations to come.

www.uaw.org

Source: International Union, UAW