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States Put Pressure on Public Worker Unions

April 21st, 2011 at 02:10pm Under VOA

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This is the VOA Special English Economics Report.

Americans have been watching the protests in the Middle East and North Africa — and closer to home. Workers in Wisconsin, and now some other states, have been protesting efforts to limit the negotiating power of government employees.

Wisconsin’s newly elected governor, Scott Walker, says limits are needed on labor unions to help cut a deficit in the state budget. The Republican governor proposes to end collective bargaining rights for most public employees except on the issue of wages.

The bill has led to big, noisy demonstrations that began earlier this month in Madison, the state capital.

PROTESTERS: “This is what democracy looks like!”

 

Protesters sleep on the floor of the Wisconsin state Capitol in Madison on Thursday at the start of the 10th day of protests.

AP

Protesters sleep in the Wisconsin state Capitol in Madison on Thursday at the start of the 10th day of protests. A sign refers to “New Cairo” after Paul Ryan, a Republican congressman, compared the protests to the recent events in Cairo.

 

The bill would not affect police or firefighters. They are barred from striking.  But firefighter Mahlon Mitchell came to protest anyway.

MAHLON MITCHELL: “This is ground zero for the nation.”

Democrats in the state Senate fled to the neighboring Midwestern state of Illinois. They want to prevent the Republican majority in the Wisconsin Legislature from passing the bill which they consider anti-union. Labor unions are a traditional base of support for the Democratic Party.

Governor Walker says the state could have to start dismissing workers unless the Democrats return to debate what he calls a budget repair bill.

Dennis Dresang is professor emeritus of political science at the University of Wisconsin. He says the modern history of the state helps explain the strong reaction.

DENNIS DRESANG: “Wisconsin was the first in the nation to establish the right of public employees to bargain collectively, and it’s a real shock to a lot of people that these rights would be taken away.”

Collective bargaining rights differ from state to state. Lawmakers in Indiana, Michigan and Ohio have also proposed limits on unions representing public employees. Critics say politicians are using state budget problems as an excuse for union-busting — an effort to take away rights to organize.

Unions have been shrinking in private industry. The Labor Department says only seven percent of workers in the private sector now belong to one. But more than one-third of government workers hold union cards. Local governments are the most unionized. Over forty-two percent of workers like teachers, health care workers and public safety employees are union members.

But labor protests are not the only political dispute capturing attention right now. A budget battle in Washington could force the federal government to suspend many operations at midnight next Friday. The last government shutdown happened fifteen years ago. It lasted a record twenty-one days.

And that’s the VOA Special English Economics Report, written by Mario Ritter. For more news — and to tell us your thoughts about organized labor — go to voaspecialenglish.com. I’m Steve Ember.

By admin 21 comments

Looking for Answers to Rising Coffee Prices

April 7th, 2011 at 02:01pm Under VOA

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This is the VOA Special English Economics Report.

Food prices are at their highest level since the United Nations Food and Agriculture Organization began keeping records in nineteen ninety. The causes include bad weather and growing demand. Some experts also blame the use of food crops to make fuel.

But higher food prices are not always the result of limited supplies.

Coffee prices have jumped almost fifty percent in six months. Prices have reached a thirteen-year high. Yet growers expect their current crop to be almost ten percent bigger than the last one.

JM Smucker is an American company known for its jellies and fruit spreads. But Smucker also owns Folgers, America’s top-selling packaged coffee. And it owns Dunkin’ Donuts, which sells coffee to wash down the doughnuts at its stores.

On Tuesday, Smucker said it would raise the prices of its coffee products by an average of ten percent. It said the increase is driven by the higher prices for coffee beans.

Experts say coffee prices are rising mainly because people are willing to pay more. Coffee sellers like Mark Warmuth say tastes are changing and more people want a good cup of coffee.

MARK WARMUTH: “There’s no right or wrong answer with regard to ‘What’s a good cup of coffee?’ A lot of it has to do with personal preference or taste.”

Mark Warmuth owns the M.E. Swing Coffee Company in Alexandria, Virginia, near Washington. He says big coffee sellers like Starbucks help his business by building a base of customers who want something better.

MARK WARMUTH: “They’re seeking something that would be better than what they can buy at Starbucks. They’re seeking out smaller, boutique, artisan, craft coffee roasters, which I consider us to be, a boutique coffee roasting company. What we can do is source better quality beans and supply them at a fresher level because we’re smaller and we can cater to the smaller metro area. That helps us compete with bigger companies.”

Yet Mr. Warmuth can thank those bigger companies like Starbucks for spreading the idea of coffee as an affordable luxury. The thinking goes that during hard times, people might not go on a trip but they might be willing to pay extra for good coffee.

The company supplies restaurants and other businesses, but also has a store in Washington near the White House.  Customers pay thirteen dollars for less than half a kilogram of beans — about double the price of other brands.

Greater demand for high-quality coffee has helped drive coffee prices higher. That includes greater demand among Brazilians. Brazil is the world’s largest exporter of coffee.

People in India are also drinking more coffee. Starbucks just announced plans to enter that market in a deal with India’s Tata Coffee company.

And that’s the VOA Special English Economics Report, written by Mario Ritter. I’m Steve Ember.

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