Loss of jobs in Ohio demands quick action



The latest report from the U.S. Department of Labor paints a bleak picture for Ohio. In February, the state lost 10,900 jobs, of which 1,200 were in the manufacturing sector. Since January 2001, a stunning 236,300 jobs have disappeared from Ohio's economy, 170,100 of them in manufacturing.
Against this bleak economic backdrop, the Bush administration continues to insist that its trade policies are working and that outsourcing is a good thing because it makes America's economy stronger.
Residents of the Mahoning Valley can be forgiven for responding with a "Say what?"
Last week's announcement by MCI that it is closing its Niles call center, and the subsequent revelation by state Sen. Marc Dann of Liberty, D-32nd, that MCI sent some of its Niles workers to Manila, Philippines, to train workers at a new call center there, certainly does not lend credence to the president's contention that the economy is on a fast track to recovery.
More than 700 Valley residents will be idled with the closing. We certainly would be interested to hear Treasury Secretary John Snow's explanation for why the closing of MCI's Niles facility is good for the region.
Snow was quoted last week by the Cincinnati Enquirer as saying of outsourcing of American jobs abroad, "It's part of trade ... and there can't be any doubt about the fact that trade makes the economy stronger."
Low-wage countries
It is true that global trade makes the domestic economy stronger. However, when the playing field is not level and when low-wage countries become the destination point for a growing number of American companies, the administration should at least give the impression that it understands what is happening in states such as Ohio and regions such as the Mahoning Valley.
Bush can no longer ignore pleas from members of Congress, including Rep. Sherrod Brown, D-Ohio, to endorse the Crane-Rangel bill that would reward companies for producing in the United States and employing American workers. As things now stand, U.S. companies that create jobs overseas not only enjoy the benefits of cheap labor and virtually no environmental standards, but they also get a break from the federal tax code.
"We should be using the tax law to encourage companies to keep manufacturing jobs in America," says Brown. "Not only is the Bush administration forsaking that opportunity, they are applauding companies for shipping jobs overseas. I'm trying to figure out if the Bush administration is just out of touch, or if they just don't care."
The congressman is a senior member of the House Energy and Commerce and International Relations committees.
Bush should take note of the fact that the Crane-Rangel bill has more than 170 co-sponsors from both sides of the aisle. The measure has been endorsed by the National Association of Manufacturers and the AFL-CIO.
The Mahoning Valley lost thousands of high-paying manufacturing jobs when the steel mills closed in the mid-1970s, and since then there has been an aggressive campaign to diversify the economy. Service jobs, such as the 700 in MCI's Niles center, have been an important feature of this effort.
But now, as a result of actions taken in Washington, those jobs are in jeopardy. MCI attributes the closing to the enactment of the do-not-call law that creates a registry of Americans who do not want telephone calls from telemarketers.
But MCI has opened call centers in several counties where the wages paid are a small fraction of what Americans earn.
Ohio's worsening job picture makes it clear that it's time for the White House and Congress to act.