October 24, 2005

Asks Congressional Delegation to Help Raise Issue with White House

LANSING – Governor Jennifer M. Granholm is calling on Michigan’s Congressional Delegation to work with her in a bipartisan, cooperative effort to urge the White House to swiftly enact policies that will positively impact the nation’s manufacturing sector and the working families that depend on it.  “The federal government needs to do its part to recognize the importance of manufacturing to our American economy, and it needs to implement policies that help American manufacturers compete in the global marketplace,” said Granholm. 

“As representatives of the people of Michigan, we share a common understanding of the importance of manufacturing to our state and national economies,” Granholm wrote.  “With more than 1 million American citizens relying on the auto industry for their families’ livelihood, this impact is being felt far beyond the state of Michigan.  Inarguably, the problems besetting the auto industry are national in scope and demand national solutions.”

The Governor made her plea following conversations with the leadership of the Big Three automakers and the United Auto Workers union, who she noted share her sense of urgency about the need for federal involvement with the serious problems confronting the manufacturing industry.
 
“The effects of the recent liberalization of America’s trade policies now threaten our own industries’ fair access to the market and ability to compete on a level playing field,” Granholm wrote.  She also noted that with our major manufacturers and their employees demonstrating a willingness to respond to these new economic realities by making difficult choices that require sacrifices from all parties, with the state doing its part to make sure Michigan is friendly to all businesses, especially manufacturers, its now time for the federal government to do its part, too.
 
“It is abundantly clear that the federal government now needs to do its part by recognizing the importance of manufacturing to our American economy and implementing policies that help American manufacturers compete in the global marketplace,” Granholm added.  

In a letter to Michigan’s Congressional Delegation, Granholm outlined potential federal actions that would help Michigan workers, their families and their communities prosper by protecting the state’s manufacturing base.  The actions would also help retain and expand jobs in thousands of manufacturing-dependent businesses and leverage vital federal support for companies that are laboring to reduce structural costs, improve productivity, and preserve high-skilled jobs.

Finally, the Governor’s proposals address the high cost of health care, would protect the pensions of those who have worked a lifetime to help build a company’s strength, and ensure that our trade laws and international trade agreements do not give unfair advantage to our competitors.
 
The Governor is asking the delegation to sign on to a letter asking President Bush for a meeting to discuss the proposals that support manufacturing and protect manufacturing families.  Those proposals include the following recommendations.

Health Care Costs: 

The federal government should take the following steps to relieve American manufacturers of the uncompetitive burden of high health care costs:

•  Create a catastrophic insurance pool/reinsurance model to reduce the cost of health insurance premiums and stabilize the insurance market;
•  Double the funding for preventive care and wellness initiatives; and,
•  Make significant investments in health information technology (HIT) to reduce health care costs. 

Pension Protection:
 
The federal government must ensure that pension promises made to workers are kept by:

•  Ensuring that any changes in federal pension policy should support companies in efforts to maintain their pension plans, rather than making it more difficult;
•  Reducing administrative burdens and uncertainties for employers making a good faith effort to meet their obligations; and,
•  Prohibiting companies from making promises they cannot keep to workers. 

Fighting for U.S. workers and businesses in international trade: 

The federal government should take the following steps immediately to level the playing field for American workers and businesses:

•  Not negotiate free trade agreements that negatively impact U.S. manufacturing interests;
•  Make trading partners play by the rules;
•  Open export markets blocked by trade barriers;
•  Appoint a Special Trade Prosecutor at the U.S. Trade Representative (USTR) to ensure more aggressive action against unfair trade practices; and,
•  Insist that our trading partners end currency manipulation; the federal government should enforce and strengthen intellectual property protections. 

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