Archive for the ‘Business and politics’ Category

Corporate America Doesn’t Qualify for Moral Leadership Either

Thursday, August 17th, 2017

It may turn out that Donald Trump’s greatest contribution to American business is allowing the chief executives of tainted corporations to take a morally superior posture toward a presidency that seems to be completely devoid of principle. Their brands are boosted as his becomes increasingly toxic.

It is a good thing that big business is taking steps to separate itself from Trump. The collapse of the two advisory councils is not only a rebuke to Trump’s offensive comments on the events in Charlottesville but also an overdue retreat from entities that were set up mainly to foster the illusion that this administration is taking serious steps to reform the economy.

Yet it is dismaying that the moral vacuum created by Trump is being filled by the likes of Walmart chief executive Douglas McMillon, who got himself featured on the front page of the New York Times for a statement criticizing Trump.

For years the giant retailer was a national symbol of discriminatory practices. In 2009 it had to pay $17.5 million to settle a lawsuit alleging that it discriminated against African-Americans in the recruitment and hiring of truck drivers. The company was also widely accusing of gender discrimination. In 2010 the company was required to pay $11.7 million to settle a case brought by the U.S. Equal Employment Opportunity Commission, and it was facing potential damages in the billions from a class action suit brought on behalf of more than 1 million female employees until the Supreme Court came to its rescue and threw out the case for what amounted to technical reasons.

In addition to discrimination, Walmart has been at the center of countless controversies involved wage theft, union-busting, tax avoidance, bribery and much more.

After Merck CEO Kenneth Frazier led the way among business critics of Trump’s embrace of white nationalism, the president struck back with a tweet referring to “ripoff drug prices.” While Trump was just being vindictive, it’s true that Merck’s reputation is far from untarnished.

In 2011 the drugmaker agreed to pay a $321 million criminal fine and a $628 million civil settlement to resolve allegations that it illegally promoted and marketed the painkiller Vioxx. This came after Merck had to remove the drug from the market in the wake of reports that the company for years covered up evidence of serious safety issues surrounding its blockbuster product. This is just one of a long list of its cases involving illegal marketing, overbilling, false claims and anti-competitive practices.

Another of the CEOs who spoke out in response to Trump’s comments was JPMorgan Chase’s Jamie Dimon. Earlier this year, the bank had to pay $53 million to settle a case brought by the U.S. Attorney in Manhattan accusing it of engaging in discrimination on the basis of race and national origin in its mortgage business.

JPMorgan Chase was one of the parties that helped bring about the financial collapse of a decade ago, and in 2013 it agreed to a $13 billion settlement of federal and state allegations relating to the packaging and sale of toxic mortgage-backed securities.

In 2015 JPMorgan had to pay a $550 million criminal fine to resolve federal charges that it and other large banks conspired to manipulate foreign exchange markets. There are many more entries in the corporate rap sheet of this company, which since the beginning of 2010 has had to pay out more than $28 billion in fines and settlements.

It would be difficult to find any members of the disbanded advisory councils whose companies have not engaged in serious misconduct of one sort or another.

Such is the peril of looking for paradigms of virtue in the business world. Corporate executives should, along with many others, speak out against Trump’s reprehensible comments, but they cannot lay claim to moral leadership.

Foreign Investment and America First

Thursday, August 10th, 2017

Donald Trump has built an image as a champion of workers by fomenting fear of immigrants. Get rid of the foreign-born, he vows, and native workers will prosper.

What’s odd is that this misguided notion is coupled with an embrace of foreign corporations. The administration’s America First economic policy relies to a substantial degree on promoting investment from abroad.

Many of Trump’s supposed job creation achievements have involved Asian companies. Soon after the election Trump claimed that Japan’s SoftBank had promised to invest $50 billion in the United States and create 50,000 jobs. Soon thereafter, Trump and Chinese mogul Jack Ma vowed that the latter’s Alibaba e-commerce empire would create 1 million U.S. jobs. In June, Samsung said it would open an appliance plant in South Carolina.

More recently, Japanese automakers Toyota and Mazda said they would jointly build a $1.6 billion U.S. assembly plant with 4,000 jobs. With the blessing of the White House, Taiwan’s Foxconn announced plans for a $10 billion flat-screen plant in Wisconsin (probably in the Congressional district of Speaker Paul Ryan) that would purportedly employ up to 13,000 people. Foxconn is reported to be considering another plant in Michigan.

While these announcements are presented as a boon to American workers, there are reasons to be cautious. Companies such as Foxconn have made big promises in the U.S. before and failed to deliver. It and SoftBank and Alibaba may be simply currying favor with Trump and will be unable to make good on their extravagant job-creation projections. Their main aim may be to discourage some of Trump’s more aggressive protectionist tendencies.

And even if Foxconn’s projects do materialize this time, there are questions about the quality of the jobs it may create. Foxconn has a long reputation for abusive labor practices in China, where it has been a leading contractor for Apple.

Concerns about the U.S. labor practices of foreign companies are not just a matter of conjecture. In fact, while Foxconn’s plans have been all over the news, less coverage was given to what happened at the Nissan assembly plant in Canton, Mississippi: an organizing drive by the United Auto Workers was soundly defeated, with the union blaming the outcome on an aggressive management campaign of scare tactics, intimidation and misinformation.

What happened in Canton is nothing new. For the past three decades, Asian and European automakers have been opening U.S. assembly plants, focusing on states with low union density and a political climate hostile to labor organizing. Taking advantage of their non-union status, they have made excessive use of contingent labor and weakened the ability of workers to act collectively to improve their conditions.

Trump, of course, launched no tweet storms against Nissan and expressed no support for the workers in Canton. On the contrary, for a supposedly populist president, Trump has promoted a series of anti-worker policies. These include moves to shift the National Labor Relations Board in a pro-employer direction, reverse the overtime pay reforms adopted by the Obama Labor Department and weaken workplace safety and health rules.

In Trump’s worldview, workers are supposed to express solidarity not with each other but rather with their employers and their President. That’s a strange sort of populism.

Is Foxconn a Con?

Thursday, July 27th, 2017

It’s common for governors to stage publicity events to announce major job-creating investments in their state. This allows them to take implicit credit for a project that was probably helped along with tax breaks and other financial giveaways.

When it came to the Taiwanese company Foxconn’s plan to build a $10 billion flat-screen plant in Wisconsin, the hype was taken to a new level. Gov. Scott Walker and Foxconn’s Chairman Terry Gou made the announcement not at the state capitol but at the White House, where they were joined by President Trump, Vice President Pence, Speaker Paul Ryan and a host of other high-level officials of the federal government.

As you might expect, the event quickly turned into a celebration of the Trump Administration. Walker, Pence and Ryan, in whose Congressional district the massive plant is to be sited, gushed about Trump’s economic leadership, with Pence declaring: “Under President Donald Trump, America is back.”

That apparently was not enough for Trump, who found it necessary to celebrate himself even more. Referring to Gou, the President declared: “If I didn’t get elected, he definitely would not be spending $10 billion” in the United States.

The creation of numerous new manufacturing jobs is something that will be welcomed by the working people of Wisconsin, but there are reasons, beyond Trump’s political exploitation of the deal, to remain suspicious.

The first matter of concern is the company itself. Foxconn has a long history of abusive labor practices in its overseas plants, including those used to supply Apple. Conditions in the company’s Chinese plants were so bad that in 2010 there was a rash of suicides among overworked employees. The company installed nets on its plants to discourage workers from jumping to their deaths. Foxconn later claimed to improve its labor conditions but the company is far from a high-road employer.

Then there are the claims about the terms of the Wisconsin deal. Gov. Walker claimed that the plant would directly create 13,000 jobs. That was good for generating excitement, but it is a dubious figure. Manufacturing establishments no longer employ anything close to that number of workers.

Out of curiosity, I checked with the Bureau of Labor Statistics to see how many plants currently exist with 10,000 or more workers. It turns out the BLS does not have that information because, as an analyst told me, there are so few facilities of that size. The trend, of course, is toward higher levels of automation and much smaller workforces.

Then there’s the issue of who is paying for the plant. While Trump and the others praised the deal as an example of private sector vitality, Foxconn’s plant will be underwritten in large part by the taxpayers of Wisconsin. Walker said that the state would “invest” $3 billion in the project. That would be the fourth largest economic development subsidy package ever offered by a state.

Despite the promises of public officials, extravagant subsidies rarely provide economic benefits equal to the loss of tax revenue. Wisconsin has a particularly bad record in this regard. The Walker Administration and its privatized economic development agency have been at the center of a long string of controversies about cronyism and poor job-creation outcomes.

The Foxconn deal will provide political benefits for Walker, Ryan and Trump, but it is unclear how much good it will actually do for the people of Wisconsin.

The Other Trump Collusion Scandal

Tuesday, June 6th, 2017

For months the news has been filled with reports of suspicious meetings between Trump associates and Russian officials. Another category of meetings also deserves closer scrutiny: the encounters between Trump himself and top executives of scores of major corporations since Election Day. What do these companies want from the new administration?

During the presidential campaign, Trump often hinted that he would be tough on corporate misconduct — especially the offshoring of jobs — and this won him a significant number of votes. After taking office, however, much of the economic populism has disappeared in favor of a shamelessly pro-corporate approach, especially when it comes to regulation. Big business has put aside whatever misgivings it had about Trump and now seeks favors from him.

There is always a fine line between deregulation and the encouragement of corporate crime and misconduct. We should be concerned about the latter, given the roster of executives who have made pilgrimages to the White House.

Public Citizen has just published a report looking at the track record of the roughly 120 companies whose executives have met publicly with Trump since November 8 and finds that many of them “are far from upstanding corporate citizens.”

Using data from Violation Tracker (which I and my colleagues produce at the Corporate Research Project of Good Jobs First), Public Citizen finds that more than 100 of the visitors were from companies that appear in the database as having paid a federal fine or settlement since the beginning of 2010.

In its tally of these penalties, which includes those associated with companies such as Goldman Sachs and Exxon Mobil whose executives were brought right into the administration, Public Citizen finds that the total is about $90 billion.

At the top of the list are companies from the two sectors that have been at the forefront of the corporate crime wave of recent years: banks and automakers. JPMorgan Chase, with penalties of almost $29 billion, is in first place. Also in the top dozen are Citigroup ($15 billion), Goldman Sachs ($9 billion), HSBC ($4 billion) and BNY Mellon ($741 million). Volkswagen, still embroiled in the emissions cheating scandal, has the second highest penalty total ($19 billion). Two other automakers make the dirty dozen: Toyota ($1.3 billion) and General Motors ($936 million).

The rest of the dirty dozen are companies from another notorious industry: pharmaceuticals. These include Johnson & Johnson ($2.5 billion),  Merck ($957 million), Novartis ($938 million) and Amgen ($786 million).

All these companies have a lot to gain from a relaxation of federal oversight of their operations. While it remains unclear whether the Trump campaign used its meetings with Russian officials to plan election collusion, there is no doubt that the administration has been using its meetings with corporate executives to plan regulatory rollbacks that will have disastrous financial, safety and health consequences.

Will DOJ Give a Deep Discount to Wal-Mart?

Thursday, May 11th, 2017

The Justice Department has a lot on its plate these days, but it has apparently found time to cook up a deal that would save Wal-Mart hundreds of millions of dollars. According to Bloomberg and the Wall Street Journal, DOJ is offering the giant retailer the chance to settle a foreign bribery case for $300 million, an amount far less than the penalty of up to $1 billion the Obama Administration was seeking in the long-running negotiations to resolve the matter.

I suppose we should be grateful that DOJ is not letting Wal-Mart off the hook entirely, given that Donald Trump once described the Foreign Corrupt Practices Act as a “horrible law.” Moreover, there has been speculation that Trump’s own business dealings may be vulnerable to FCPA prosecution in places such as Azerbaijan.

Attorney General Jeff Sessions has gone out of his way to affirm the commitment of his department to enforcing the FCPA, yet this is the same person who just involved himself in the firing of FBI Director James Comey after promising to recuse himself from the probe of the Trump campaign’s Russian ties.

It could be that Sessions intends to go on bringing FCPA cases but with reduced settlement amounts. That would be at least a partial victory for companies like Wal-Mart, whose FCPA problems first gained widespread attention after the New York Times published a 2012 investigation of widespread bribery in the company’s Mexican operations. In response, the company launched its own examination of possible misconduct in countries such as Brazil, India and China.

Given Wal-Mart’s size and prominence, a large penalty would be appropriate to send a message to the corporate world about the consequences of corrupt practices. The $1 billion amount reportedly sought by the Obama Administration would have been the largest single FCPA penalty ever imposed.

Instead, the reported $300 million settlement amount would not even rank among the top ten, according to the list maintained by the FCPA Professor blog. That list, topped by Siemens at $800 million and Alstom at $772 million, is dominated by foreign companies, including some such as VimpelCom (now known as Veon) and Snamprogetti (now part of Italy’s Saipem) that are hardly household names.

Giving a deep discount to a domestic behemoth would raise questions about the enforcement of a law that is meant to fight corruption worldwide.

DOJ’s decision on what to do about the Wal-Mart FCPA case will provide an important clue about how it intends to deal with corporate crime in general. The Obama Administration struggled to find the best way to deter business misconduct, and if nothing else increased penalties in major cases to unprecedented levels. Imposing a relatively small penalty on Wal-Mart would reverse that trend and signal to corporations that they have less to worry about from the Trump Justice Department.

Another Form of Denial

Thursday, May 4th, 2017

Lurking behind the assault on regulation being carried out by the Trump Administration and its Congressional allies is the assumption that corporations, freed from bureaucratic meddling, will tend to do the right thing. That assumption is belied by a mountain of evidence that companies, if allowed to pursue profit without restraint, will act in ways that harm workers, consumers and communities. In fact, they will do so even when those restraints are theoretically in effect.

The latest indication of the true proclivities of big business comes in a report just released by the U.S. Chemical Safety Board on a 2015 explosion at the Exxon Mobil refinery in Torrance, California. That accident spewed toxic debris and kept the facility at limited capacity for a year, boosting gasoline prices in the region and costing drivers in the state an estimated $2.4 billion.

According to the safety board, the accident was not an act of god but rather the result of substandard practices on the part of Exxon. The report states:

The CSB found that this incident occurred due to weaknesses in the ExxonMobil Torrance refinery’s process safety management system.  These weaknesses led to operation of the FCC [fluid catalytic cracking] unit without pre-established safe operating limits and criteria for unit shutdown, reliance on safeguards that could not be verified, the degradation of a safety-critical safeguard,  and the re-use of a previous procedure deviation without a sufficient hazard analysis that confirmed that the assumed process conditions were still valid.

Exxon was also found to have used critical equipment beyond its expected safe operating life. The CSB investigation also discovered that a large piece of debris from the explosion narrowly missed hitting a tank containing tens of thousands of pounds of highly toxic modified hydrofluoric acid. Exxon refused to respond to the agency’s request for information detailing the safeguards it had (or did not have) in place to prevent or mitigate a release of the acid. The agency has gone to court to try to get the information.

The CSB is an investigatory and not a regulatory body, so it does not have the power to penalize Exxon for its role in bringing about what the agency called a “preventable” incident. Yet its report adds another entry to Exxon’s dismal corporate rap sheet. The Torrance refinery itself, which came from the Mobil side of the family, has a long history of fires, explosions and leaks. The rest of Exxon has a track record that includes the disastrous Exxon Valdez oil spill in Alaska, numerous pipeline accidents and much more, including many years of climate denial. This tainted record did not prevent the company’s CEO from being the U.S. Secretary of State.

Last year, the Torrance refinery was sold by Exxon to PBF Energy, which has subsequently experienced “multiple incidents,” as the CSB diplomatically put it.

No matter how many instances of corporate negligence are brought to light, there are always business apologists ready to point the finger at regulators instead. The gospel of deregulation is now the state religion of the Trump Administration. How many preventable disasters will it take to share that belief?

Grand Theft Wage

Tuesday, April 18th, 2017

Several weeks ago, in one of his few legislative successes, President Trump signed a bill rescinding the Obama Administration’s executive order on Fair Pay and Safe Workplaces. The order, designed to promote better employment practices by companies doing business with the federal government, instructed procurement officials to consider the labor track record of contractors, which were required to disclose their recent violations.

Business groups, which had attacked the order as a form of blacklisting, have gotten their way, but it is still possible for a federal procurement officer to determine whether a bidder is a rogue employer. It’s simply a matter of plugging the company’s name into Violation Tracker, the free database on corporate crime and misconduct I have assembled with my colleagues at the Corporate Research Project of Good Jobs First.

We’ve just announced the latest expansion of the database: 34,000 Fair Labor Standards Act cases brought since the beginning of 2010 by the Wage and Hour Division of the U.S. Labor Department. The dataset, covering cases with back pay and penalties of $5,000 or more, represents the recovery of more than $1.2 billion by WHD investigators.

Many of the offending employers are smaller businesses, but wage theft is far from unknown among large corporations. The biggest cumulative amounts collected by the WHD since 2010 came from oilfield services company Halliburton, which in 2015 agreed to an $18 million settlement of alleged overtime violations, and CoreCivic (the new name of private prison operator Corrections Corporation of America), which in 2014 agreed to an $8 million settlement. Also among the top ten are Walt Disney ($4.2 million) and Royal Dutch Shell ($2.6 million).

The wage and hour cases supplement existing Violation Tracker data in two other key areas that had been included in the executive order: workplace safety (OSHA cases) and employment discrimination (cases brought by the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance Programs). We are now in the process of obtaining data on the remaining category — unfair labor practice cases — from the National Labor Relations Board.

DOL administrative actions are not the only game in town when it comes to challenging wage theft, which a 2014 Economic Policy Institute report estimated could be costing U.S. workers as much as $50 billion a year. Some of the biggest recoveries come in lawsuits known as collective actions that are brought in federal court on behalf of groups of workers and often result in multi-million-dollar settlements. Unfortunately, there is no central information source on these settlements. The Corporate Research Project is in the process of piecing together the data from multiple sources and will add it to Violation Tracker later this year.

The issues covered by the Obama executive order are just a portion of what can be found in Violation Tracker. We now have 158,000 cases brought by 42 federal regulatory agencies and all divisions of the Justice Department. The fines and settlement amounts in these cases total more than $320 billion.

Violation Tracker data is now current through late March of this year, but for some agencies there was not a lot of case information to collect for the first two months of the Trump Administration. For example, the Wage and Hour Division, which in recent years usually announced numerous case resolutions each month via press releases, has posted only a handful of such releases since Inauguration Day. There’s no indication that the work of the division has stopped, but it appears that the Trump appointees now running the Labor Department are not eager to publicize enforcement activities.

The Tainted Reverse Revolving Door

Thursday, April 13th, 2017

Given his own string of business controversies, it perhaps should come as no surprise that Donald Trump does not seem to worry much about the accountability track record of the companies from which he has recruited key members of his administration.

It’s well known that he chose as his Secretary of State the chief executive of environmental culprit Exxon Mobil, that he brought in a slew of people from controversial investment house Goldman Sachs, that his Treasury Secretary had operated a bank notorious for foreclosures, and that his first pick for Labor Secretary had run a fast-food company with numerous wage and hour violations.

It’s becoming increasingly clear that those were not anomalies. Research being carried out in collaboration with independent investigator Don Wiener shows that the administration also has a tendency in its second-tier White House and subcabinet appointees to select people associated with companies that have a checkered reputation.

When we initially embarked on this effort we expected to have to look into hundreds of names, primarily by checking their affiliated companies in our Violation Tracker. So far, whether by design or disorganization, the Trump Administration has announced nominees for only a few dozen of the hundreds of positions in the various departments and agencies, though things have been moving somewhat faster for White House staffers who do not require Senate confirmation. Within both of these groups there have been some questionable choices. Here are some initial examples; more will come in later posts.

Kenneth Juster and Bridgepoint Education. In February Trump chose Kenneth Juster, a partner at the private equity firm Warburg Pincus, to be Deputy Assistant to the President for International Economic Policy.  Prior to his appointment Juster was a member of the board of directors of Bridgepoint Education, an operator of for-profit colleges. He was a board representative for Warburg, which was an early backer of the company and which controls one-third of the firm’s shares.

As shown in Violation Tracker, in 2016 the Consumer Financial Protection Board alleged that Bridgepoint deceived students into taking out private loans that cost more than advertised. The agency fined the company $8 million and ordered it to provide $23.5 million in relief and refunds to clients.

Michael Brown and Chesapeake Energy. Brown, an executive assistant to Energy Secretary Rick Perry, previously worked for Chesapeake Energy, the controversial fracking company based in Oklahoma. In 2013 the Environmental Protection Agency announced that a subsidiary of the company was being fined $3.2 million and would spend $6.5 million on site restoration to settle allegations that it violated the Clean Water Act through improper discharges into streams and wetlands.

Drew Maloney and Hess Corporation. Maloney, chosen to be the Assistant Secretary for Legislative Affairs at the Treasury Department, previously worked at the oil company Hess. In 2012 the EPA announced that Hess would pay a penalty of $850,000 and spend more than $45 million on pollution control equipment to settle Clean Air Act allegations at its refinery in New Jersey.

These are but a few examples of the what might be called the tainted reverse revolving door. The term “revolving door” is used to refer to the movement of government officials into lobbying and other private sector jobs where they exploit connections made in their public positions. The reverse revolving door is the process by which private sector people take government posts in which they are likely to promote the priorities of their previous (and likely future) employers.

Not only is Trump filling his administration with people with a business background, but he’s selecting people from some of the worst companies the private sector has to offer.

The Junk Insurance Lobby

Thursday, April 6th, 2017

The ACA repeal-and-replace effort, given up for dead two weeks ago, may or may not be getting resurrected. Whether that happens seems to depend on satisfying the desire of Tea Party Republicans to grant Americans the right to purchase the crappiest health coverage possible.

Whereas Paul Ryan and President Trump initially wanted to retain the ACA’s popular provisions on essential benefits and pre-existing conditions, they now seem open to trading them away to win over the Freedom Caucus.

The position of the hardliners is often dismissed as some kind of bizarre misanthropy, but it is actually the logical conclusion of the mainstream Republican notion that deregulation is the solution to all problems. That notion has been embraced by Trump, who repeatedly bashes agencies such as the EPA and claims that weakening business oversight is the key to job growth.

The members of the Freedom Caucus seem to believe that removing all restrictions on insurance companies will result in lower premium costs. That may be true but only because the insurance that people would be purchasing would cover as little as possible.

While the Freedom Caucus presents this as a bold new approach, it is really nothing more than a return to the situation before the enactment of the ACA. Republicans of all stripes would have us forget how awful and oppressive health insurance used to be.

Thirty years ago, the House Select Committee on Aging was warning that, in addition to the millions of Americans who were uninsured, millions more were underinsured. As traditional insurance was increasingly replaced by health maintenance organizations — whose business model was to deny as much coverage as possible — subscribers had to fight constantly to get prior approval for many procedures and to get reimbursed for medical fees already paid.

Even worse than the HMOs were the individual plans labeled as “limited benefit” or “mini-medical.” Targeted to lower-income people who were self-employed or had jobs that provided no coverage, these policies could cost as little as $40 a month but they had strict limits on both routine expenses and hospitalization costs. These plans existed for a long time on the fringes of the health insurance world, but eventually large companies such as Aetna, Cigna and UnitedHealth Group entered the market with their own bare-bones offerings.

Those subscribing to such plans were gambling they would remain healthy. If instead someone had a serious accident or illness, the plans were useless and often pushed people into personal bankruptcy.

Junk policies are the healthcare analogue to payday loans and other forms of predatory lending. They appear to serve a need and initially appear to be inexpensive, but they can have disastrous consequences.

The ACA was designed to protect people from those consequences, but the Obama Administration did not do enough to explain the change. In a climate of rightwing demagoguery, many people who had to give up their low-cost junk insurance were led to think they were losing something valuable. Moreover, Medicaid expansion, which provided free, decent coverage for low-wage workers who might otherwise have had to depend on junk policies, was blocked in many states for ideological reasons.

Now the Freedom Caucus would have us believe that bare-bones coverage is the way forward for the individual marketplace. That might be the case if we want a society in which those few people with no significant health needs get a bargain while everyone else has to risk financial ruin.

The Corporate War on Coal Miners Continues

Thursday, March 30th, 2017

The signing ceremony for Donald Trump’s executive order nullifying the climate initiatives of the Obama Administration was staged so that about two dozen miners looked on adoringly as the president claimed to be ending the so-called war on coal. Trump then repeated his promise that the regulatory rollbacks would “put our miners back to work.”

Just about every analysis concludes this is a hollow promise. Trump’s action will have little impact on the long-term decline of coal industry jobs. Even industry figures such as Robert Murray, CEO of Murray Energy, are warning: “He can’t bring them back.”

And even if there is a modest improvement, it won’t include the kind of well-paying jobs that used to characterize coal mining. According to the latest annual report on coal from the U.S. Energy Information Administration, unionized underground mining jobs are now outnumbered three to one by non-union surface mining jobs. The executive order’s lifting of the freeze on federal coal leasing, which is concentrated in Western surface mines, will increase the gap.

This did not happen by accident. The coal industry has been seeking for years to weaken the United Mine Workers by shifting work to non-union operations or by spinning off UMW-represented mines as weak stand-alone companies. The industry’s biggest producer, Peabody Energy, did this in 2007 when it shed Patriot Coal, which subsequently declared bankruptcy and was given court approval to slash wages, pensions and healthcare benefits of its workers and retirees. Today Peabody has only one operation left with a UMW presence. Anti-union animus was pronounced at various companies — especially Pittston and Massey Energy — that merged into what is now called Alpha Natural Resources.

One consequence of de-unionization is that coal managers can more easily cut corners on safety. This was seen at Peabody more than three decades ago. In 1982 the company pleaded no contest and paid a penalty of $130,000 to settle federal charges that it falsified dust-sampling reports submitted to the Mine Safety & Health Administration (MSHA) as part of the monitoring of conditions that can cause black lung disease. In 1991, after a year-long investigation by MSHA, Peabody once again stood accused of tampering with coal-dust test results. It pleaded guilty to criminal charges and was fined $500,000, the largest penalty that had ever been assessed for a non-fatal violation of federal mine safety regulations.

In 2006 a dozen miners died in a methane gas explosion at the Sago Mine in West Virginia operation, which had been cited by MSHA for “combustible conditions” and “a high degree of negligence.” During 2005 the mine (then run by International Coal Group, which later merged into Arch Coal) had received more than 200 violations, nearly half of which were serious and substantial.

Allegations of poor safety practices at a non-union mine surrounded an even worse disaster — the death of 29 miners at Massey Energy’s Upper Big Branch operation in West Virginia in 2010. The mine had been cited more than 50 times by MSHA in the month before the explosion and had racked up 1,342 violations over the previous five years. In 2011 Alpha Natural Resources, which bought Massey after the accident, had to pay $209 million to settle federal criminal charges.

If Trump really wanted to do something to help coal miners, he would beef up MSHA’s enforcement capacity and embrace labor law reforms that would help the UMW regain lost ground. Instead, he is proposing a 21 percent cut in the budget of the Labor Department, of which MSHA is a part, and staying silent on the anti-worker practices of the coal companies he is so eager to assist.