The Unions, The Senators, and the Ports, Part II
Caption: Former President Bill Clinton (L), American University of Dubai President, Dr. Lance de Masi, and Dubai ruler Sheikh Mohammed at American University of Dubai, November 2005.
Two days ago, in a post entitled "The Unions, The Senators, and the Ports", I wrote about a rally organized and attended by teamsters and longshore unions on Monday in Newark NJ. The espoused purpose of the rally was to protest the takeover of New York and Newark ports by an "Arab company." Also present at the rally were three of four area's four Senators- Charles Shumer (D - NY), Robert Menendez (D - NJ) and Frank Lautenberg (D - NJ). Conspicously absent, I noted, was Senator Hillary Rodham Clinton (D-NY). This prompted me to end the post with this question:
Where was Senator Clinton (D-NY)?
The following day's New York Daily News provided the answer. Apparently she was huddling with advisors hammering out the details of an op-ed co-authored with Senator Menendez. The title of that piece, "They're American Ports", begins this way:
The announcement by Dubai Ports World that it will complete the acquisition of operations at six U.S. ports tomorrow but delay control does nothing to alleviate the responsibility of the Bush administration and Congress to block this deal from moving forward.We have a responsibility to examine the troubling facts surrounding this transaction and the broader question that underlies it: Is it in the national security interest of this country to turn over control of critical security assets to a foreign nation?
The answer is no.
The reframing of the question is unmistakable. Ports are "critical security assets" not economic ones. Also noteworthy is the distinction being made between foreign ownership and control by "a foreign nation." This distinction is then expanded upon and clarified in the ensuing paragraphs:
The Bush administration has ducked this debate by disingenuously claiming that there is no difference between the current port operator, a British company, and Dubai Ports World, which is owned by the government of Dubai. But that claim is simply wrong on its face. There is a vast difference between a publicly traded foreign company that answers to shareholders and a state-owned one that answers to a foreign government.Publicly traded companies exist for one reason, to make money for their shareholders. And every action they take is designed to further that goal.
Nations, however, act for a variety of reasons - in some cases to make money through state-owned companies, and in other cases to project power, secure strategic interests or defend their own borders.
I find this explanation intriguing. Of all the people in the world, Senator Clinton is among the last I ever expected to say that "Publicly traded companies exist for one reason, to make money for their shareholders. And every action they take is designed to further that goal."
This statement, which I essentially agree with, is a far to the right of the corporate social responsbility movement which advocates for corporations to place as much emphasis on social and ethical performance as to the botton line.
This bottom-line-trumps-all-else philosophy also doesn't square with what Senator Clinton has said at other times to other audiences. Google this phrase (Hillary Clinton bottom line profits) and here is some of what you will find. In an address in 1998 to the graduating class of Harvard Medical School, the then first lady said:
There are more than 160 million people enrolled in managed care plans, an increase of 75 percent just since 1990. More physicians are forming their own health plans and working to find new ways to share risks and control costs. There is, however, and another responsibility. And that is that these new forms of care do not mean sub-standard care, that the bottom line of profits never eclipses the bottom line of good medicine.
Thus she clearly understands that it would be unacceptable to define "good medicine" down as a way to drive profits up. In an address delivered to the United Autoworkers Union Legistlative Policy Conference on February 6th of this year, Senator Clinton said:
So we all have to take more personal responsibility but we need a system that works to provide healthcare for everybody and we’re not going to get it unless we have presidential leadership and congressional leadership that stands up against the pharmaceutical companies and the insurance companies and says “we’re going to have a healthcare system that takes care of Americans not takes care of their bottom line.”
And she said this:
So starting in the 1930’s through the blood sweat and tears of a lot of people, the American labor movement came into its own. And the greatest period of prosperity after WWII into the 1970’s was a partnership between business and labor and government. That’s what worked. You know we had a government that was a good watchdog who put into place the rules and regulations to make sure that people were not taken advantage of. We had business leaders who understood that their obligation was not just to the bottom line but to their employees and the communities that they served and the country that made it possible for them to be successful. And we had a labor movement that fought for all these advancements in human dignity and opportunity.
And because "there is no more vital interest to any government than securing its homeland", the senators inform us that they
have introduced legislation to ban companies owned by foreign governments from controlling operations at U.S. ports. Our ports are at the front lines of our homeland defense, and despite the administration's claims to the contrary, terminal operators play a key role.
I have a hard time accepting the substance of this argument. If I take it literally, it would seem that Dubai Ports World would only need be spun off by the UAE government and that the issue with their ownership of the ports would become a non-issue. Somehow I doubt that is the case. The next paragraphs explain why:
Terminal operators develop port security plans that contain sensitive security information. They are responsible for securing the perimeter of the terminal and determining how drivers who move cargo to and from the port are identified. They conduct security training for dockworkers and communicate with federal authorities in the event of a security problem. The Dubai Ports World merger would put a company controlled by a foreign government in charge of these functions. And we just heard that the U.S. Coast Guard raised initial objections to this deal because of intelligence gaps.Ironically, it is the Bush administration's failure to adequately secure our ports that has placed the terminal operators in such a key security role. Only 5% of containers that come through our ports are inspected, and security experts have long warned that federal resources for port security are woefully inadequate.
Now I don't know much about port terminal operations. But reading the above, especially the last sentence, I can't help but wonder whether the senators would like to see more than 5% of containers inspected. And if so, who stands to gain from such an arrangement. Would it be the longshore and teamster unions? According to a document I found from July 2003, they just may be.
The document in question is the "Remar Statement." Robert Remar is partner in a San Francisco based law firm that serves as general counsel to the International Longshore and Warehouse Union (ILWU) and which provides legal services to several other labor organizations in fields as diverse as maritime transportation, higher education, retail, warehouse, and hospitality.
On July 23, 2003 Mr. Remar addressed the House Transportation And Infrastructure Committee, Subcommittee On Coast Guard and Maritime Transportation. On the agenda for that day was a hearing on the Coast Guard’s Interim Final Regulations on Port Security. Here's an exceprt from Remar's statement to the subcommittee that I find highly relevant to this discussion:
As a general matter, I would note that the Coast Guard’s July 1 interim rules on port security, for the most part, provide well-crafted, pragmatic and effective measures to deter terrorism and protect our ports and the nation at large. The Coast Guard deserves praise and applause for their leadership and vision in the challenging, yet critical area of port security. With that said, improvements and modifications can be made to several important parts of the regulations and we hope that the Coast Guard will revisit the issues raised today by transportation labor.To ensure fully effective port security measures, we urge that the Coast Guard interim rules be revised to mandate those security initiatives that presently are only recommended for port facilities. Specifically, the interim rules should require, rather than just recommend, that 1) the maritime industry and port labor organizations be included as members of Area Maritime Security (AMS) Committees under § 103.305
If I understand this passage correctly, the labor unions are angling for a larger role in port security and have been for some time. Here's another passage that explains their position:
The preamble to the rules on Area Maritime Security states that members of the AMS Committee “may include, but are not limited to, the following stakeholders: ...labor organizations, port managers, and vessel and facility owner/operator security representatives.” (68 Fed. Reg. 39286) While we would hope that the COTP in each port would include representatives from longshore and other transportation unions on their AMS Committee, given that the involvement of workers is absolutely critical to effective port security, we are urging that the regulations specifically mandate labor’s inclusion.
After outlining several reasons why labor unions would be especially well suited and highly motivated to participate in part security efforts, some of which seem quite sound, Remar offers this concluding remark:
... we are urging that the Coast Guard modify its position and ensure that the final regulations more specifically mandate that longshore and other transportation unions serve as members of AMS committees. I know that my union, and other members of TTD, are eager and willing to lend their expertise to improving port security.
For me the outlines of the union resistance to the port deal are becoming clearer. It would seem that for some time several labor unions have been desirous of a larger role for themselves in port security. To the best of my knowledge they have been rebuffed. The proposed ports deals offers them the best opportunity that they have had in a few years to get what they seek and, in doing so, do much to guarantee their job security.
If my reasoning is correct, this would also explain why certain New York area senators are tripping all over themselves to accomodate this powerful constituency of theirs.
The obvious question that arises is this: does the legislation proposed by Senators Menendez and Clinton include language that mandates the inclusion of union workers on the Area Maritime Security Committees?
Links: Conservative Cat | Don Surber | Freedom Watch |
Update: The Jawa Report has an interesting post aksing what Senator Hillary Clinton knew about the involvement of her husband, ex-President Bill Clinton's involvement in the Dubai Ports World deal and when she knew it.
See also: The Unions, the Senators, and the Ports, II | "Bubba Bill and His Dubai Buddies" at TMH Bacon Bits
Tags: uae | Dubai | united arab emirates |
cfius | dubai ports | clinton | Hillary | Hillary Clinton |

Comments
Starling,
I really appreciate your efforts to elucidate this complex question.
After trying to understand the issue, I find myself coming down somewhere in the middle: I still have some worries about the ports deal, but I am reassured that many intelligent and reliable people feel perfectly comfortable with the UAE.
I wish our politicians would eschew attempts to score political points in this matter, and deal rationally with an issue for once (vain hope!).
Jamie Irons
Posted by: Jamie Irons | March 3, 2006 10:21 AM
The information about the teamsters is an interesting addition to the puzzle. Absolute power does corrupt absolutely. Somehow we need to control our government again.
Posted by: AverageJoe | March 3, 2006 4:41 AM