Pentagon Project Drains Philadelphia Jobs Via NY Transfer News Collective * All the News that Doesn't Fit ------------------------- Via Workers World News Service Reprinted from the November 6, 1997 issue of Workers World newspaper ------------------------- PHILADELPHIA NAVY YARDS: PENTAGON PROJECT DRAINS MILLIONS AWAY FROM JOBS By Joe Piette Philadelphia The Pennsylvania legislature has the opportunity to pass a jobs bill that would create 10,000 jobs at relatively moderate costs. Without a big, popular struggle, however, the bill is unlikely to pass. Meanwhile, local, state and federal funds totaling $429 million are to be spent in a Pentagon project to revive the Philadelphia Naval Yards. The contract is going to a Norway- based shipbuilding firm, will create only 1,000 jobs, and costs $601,000 in subsidies per worker. The bulk of the funds are to guarantee profits for the private company and allow the Pentagon to expand its naval and air capacity without cutting into its budget. The money spent will modernize the two largest dry-docks and ship-building facilities at the Naval Yards in South Philly. In return, Kvaerner ASA of Norway must spend $135 million to put together at least three cargo container ships here, committing itself to a minimum of 700 jobs the first five years, and 500 jobs over the sixth through 15th year. The politicians and big-business media backing these huge subsidies are the same pro-corporate forces who approved recent state and federal cutbacks making conditions worse for the poor. Officially, there are 123,000 people without jobs in the Philadelphia area alone. Kvaerner, with 56,000 workers at sites in 100 countries, had revenues last year of $4.65 billion, with $272 million in profits, from shipbuilding, engineering, construction, paper, oil and gas operations. The Philadelphia Naval Shipyards' giant Dry Docks 4 and 5 measure 1,082 feet long, at least 134 feet wide, and 50 feet deep each, the largest available on the East Coast and among the largest in the world. Kvaerner gets full use of this valuable 80-acre facility, plus it won't have to deal with the environmental protection regulations that would be necessary if it had to build from scratch. Not counted in current subsidies are $41 million the Pentagon is spending to clean up contamination at the shipyard. PENTAGON-BOEING INVOLVEMENT Subsidies for Kvaerner's PNY project include $182 million from Pennsylvania's state capital budget, $50 million from the city of Philadelphia in HUD loans, property tax breaks and Federal Defense Conversion Funds, $40 million from the Labor Department, $65 million from the Delaware River Port Authority, yet-to-be-determined millions from federal, state and local training funds, and $50 million from the Pentagon. In 1995, the Pentagon closed the Philadelphia Ship Repair Facility, which as late as 1991 employed 7,400 workers. Can the Pentagon really care about jobs in Philadelphia? It would be interested, however, in a new, technologically advanced shipbuilding site at its old Naval Yards, for possible military use in the future. And Kvaerner is no stranger to the Pentagon. Kvaerner and the Boeing Co. of Seattle have won a contract to study building a huge offshore air base: a 5,300-foot floating runway capable of handling the largest aircraft and housing up to 10,000 troops. In lieu of aircraft carriers, the mile-long, floating off-shore military base would be used against rebellions and liberation movements anywhere in the world. Kvaerner also happens to be a partner with the Boeing Co. in the $200 million "Sea Launch" Project, in which satellites are to be launched from a remote location in international waters about a thousand miles south of Hawaii. The Philadelphia Naval Yards are just a few miles north on Interstate 95 from Boeing-Philadelphia, which employs 6,300 workers in the production of V-22 Osprey Helicopters and Chinook troop and cargo helicopters. With its $250-million payroll, Boeing says it is the largest manufacturing employer left in Pennsylvania. Kvaerner would also be within 20 miles of the sprawling Lockheed-Martin defense plant in Valley Forge, Pa. Are Kvaerner, Boeing and the Pentagon using these local government subsidies at the Naval Yard for eventual military purposes? WHY THE SECRECY? Negotiations with Kvaerner were kept secret for two years, and only revealed in late September. Within 10 days, the same Pennsylvania governor unwilling to let legal immigrants collect food stamps or medical benefits had passed an appropriations bill handing over $182 million to the Norway firm. Federal commitments of over $100 million were lined up before any news of the deal was even made public. Excluded from the secret negotiations were labor unions and community groups. In fact, Philadelphia City Council members were filled in only on Oct. 6, in a closed-door session. No public hearings have been held, nor have any been announced. Philadelphia Mayor Rendell told the Philadelphia Daily News he "expects the reborn shipyard would employ union workers." According to articles in the same newspaper, however, Kvaer ner has a reputation of demanding not only that workers be highly trained, but that unions "not impede production" with work rules common within the U.S. Despite the refusal to release details to the public, the politicians justify these huge giveaways to Kvaerner by bragging how 1,000 jobs will be created. But they could instead pass alternative legislation that would create more jobs at less cost. Pennsylvania State Senator Vincent Hughes' proposed State Bill 895 would create 10,000 jobs at a living wage. The Martinez Job Bill--H.R. 950--is similar on the federal level. Both would pump funds into community services and school, transportation, housing and infrastructure construction and repair. The $429 million slated for the Kvaerner project could be used instead to rebuild North Philadelphia and create many thousands of jobs. But under capitalism, jobs are never the goal--profits are. - END - (Copyright Workers World Service: Permission to reprint granted if source is cited. For more information contact Workers World, 55 W. 17 St., NY, NY 10011; via e-mail: ww@workers.org. For subscription info send message to: info@workers.org. 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