Meeting the PAC Challenge

Corporations outspend labor in politics 19 - 1. Although unions could never match the donations of corporations, we do have the opportunity to play a larger role in financing political activism through our Political Action Committees (PACs).. If we could sign up every Steelworker member in the United States in our PAC check off program for a minimum voluntary contribution of $1.00 per week, we have the potential to raise in excess of $15,000,000 per year.

These contributions, along with the level of activism that we have already achieved, would allow us to win much needed legislation, such as health insurance for steelworkers who lost their jobs because of the failed trade policies of the past decade, lower prescription drugs for all Americans, better trade policies that would stop the mass exodusn manufacturers, and possibly even the much-sought-after National Health Care for all Americans.

The opposition we face in addressing these challenges is formidable:

Pharmaceutical Industry

• With fears of bioterrorism on the rise, members of Congress and the Bush administration are looking to boost the nation’s defenses when it comes to infectious diseases -- a plan that includes spending billions of dollars to stockpile vaccines and antibiotics that could fight outbreaks like anthrax and smallpox.
• On the frontlines of this debate is the pharmaceutical industry, which has offered Washington unprecedented help in its efforts to combat terrorism. They are making available free supplies of drugs and vaccines, lending some of the industry’s most talented scientists to work with government agencies in the development of new cures.
• But such offers rarely come without strings attached -- especially when they come from one of the most powerful special interest lobbies in Washington.
• In exchange for its help, the drug industry, the 10^th largest campaign contributor to federal parties and candidates in 2001, (over $5 million) is pressing President Bush and Congress for some major policy concessions. Pharmaceutical companies have asked to be protected from lawsuits should the vaccines they develop to fight terrorism cause health problems.
• They also want to block generic drug companies from making cheaper versions of their drugs, which would lower the cost of prescription medicines for all Americans.
• More than two-thirds of the $5 million the drug industry made in PAC contributions went to Republicans.

Auto Industry

• While the big three U.S. automakers and their workers are the public face of the industry, auto dealers -- not manufacturers -- are the biggest source of campaign money in the industry. The auto industry accounted for nearly $4 million in soft money, PAC and individual contributions to federal parties and candidates in 2001, 79 percent to Republicans. Of that total, car dealers contributed $2.3 million, while auto manufacturers contributed just under $650,000.
• In recent years, car dealers and automakers have been at odds, largely because of efforts by the "Big Three" to bypass dealers and sell cars directly to the public. The dealers who are represented by the National Dealers Association contributed $889,550. From that amount, 60 percent went to Republicans and have pressed Congress to pass legislation that would block car makers from selling directly to consumers. So far the dealers are winning, mostly because of their huge donations.

Energy Industry

• Let us not forget the political power Enron bought over the last two years. Enron contributed more than $2.4 million in individual, PAC, and soft money to federal candidates and parties, ranking it among the top 50 organizational donors in the 1999-2000 election cycle. Since the 1989-1990 election cycle, Enron has made nearly $5.8 million in campaign contributions, 73 percent to Republicans and 27 percent to Democrats.
• The federal government’s involvement could create a quandary for President Bush, who raised nearly $114,000 in PAC and individual contributions from Enron in 1999-2000, making the company one of Bush’s top donors.
• Enron also donated $100,000 to the Bush/Cheney inaugural gala, a contribution that was matched by Enron’s chairman and chief executive, Kenneth Lay, and his wife. The Lays also contributed a total of almost $883,000 to candidates and parties since 1989, of which 90 percent went to Republicans.