NYT: A Labor Union’s Analysis of China

[Omaha Steve]

http://green.blogs.nytimes.com/2010/08/09/a-labor-unions-analysis-of-china/?scp=1&sq=union&st=cse

August 9, 2010, 10:20 am

By MATTHEW L. WALD
Green: Business

The United Steelworkers announced last week that it had signed a deal with two Chinese companies that are planning a $1.5 billion wind farm in Texas to assure that some of the high-value parts are made in this country.

China was probably inclined to negotiate because the labor organization has become an influential voice in trade policy, bringing successful suits against countries that it asserts are unfairly dumping subsidized imports here.

A few years ago, it might have seemed odd for an American industrial union to negotiate with companies owned by the People’s Republic of China on rights for workers. And it might seem odd that China wants to build in the United States. The plant will have Chinese financing yet a heavy component of American parts.

In a conference call to announce the deal on Friday, the union president, Leo W. Gerard, was asked why under those circumstances the Chinese were so interested in Texas.

For one thing, he said, China has more money than it can invest at home. And the United States has good wind and a good electricity market.

“They believe they can make some money in the U.S. market,” he said. “These are Communist capitalists.”