W.'S SWEATSHOP
NOMINEE.
Isle of Blight
by Franklin Foer
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date 06.07.01 | Issue date 06.18.01 |
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Patrick Pizzella has been many things in his
career: director of intergovernmental and regional
affairs at the Small Business Administration,
deputy undersecretary at the Department of Education,
a $175,000-per-year lobbyist at the firm Preston
Gates. So when George W. Bush nominated him
to be assistant secretary of labor for administration
and management, the Senate perused his hefty
CV and gave him its unanimous consent. To the
Democratic eyes on Ted Kennedy's Health, Education,
Labor, and Pensions Committee, Pizzella seemed
no different from the other lobbyists flooding
the new administration. As one Democratic aide
notes, "We can't battle them all."
But had Kennedy's people paid closer attention
to page 9 of Pizzella's Executive Branch Personnel
Public Financial Disclosure Report, they would
have discovered that he is, in fact, quite exceptional,
especially for a nominee to the Labor Department.
For there, hidden in plain view, Pizzella notes
that he provided "[g]eneral lobbying representation"
for the Commonwealth of the Northern Mariana
Islands.
Although they sound like a tropical paradise,
the Mariana Islands are actually something close
to the opposite. An American territory in the
Pacific, just north of Guam, they have become
a notorious haven for foreign-owned sweatshops
in recent years. According to a 1998 report
by a congressionally mandated task force, 91
percent of the Marianas' private workforce consists
of "indentured alien[s]" usually working to
pay off fees their employers charged for resettling
them in the islands. Describing coerced abortions,
guarded labor barracks, and systematic underpayment,
the task force labeled the islands a national
"embarrassment."
Blocking any federal regulations that might
lessen that embarrassment was the goal of Pizzella's
"representation," which lasted from 1996 to
last year. It's hard to imagine anyone you would
want less in the top ranks of the department
ostensibly dedicated to protecting workers'
rights.
For 30 years following their 1944 liberation
from Japan by American GIs, no one in the United
States paid much attention to the Marianas.
Aside from the military bases they housed, the
islands idled in the sun like a setting for
a Graham Greene novel. The U.S. government sank
about $90 million into building infrastructure
in the islands and aiding their small indigenous
populations, but that was about it.
Then, in 1975, the islands voted to become
a U.S. commonwealth. In order to give the economy
of the newly founded Commonwealth of the Northern
Mariana Islands (CNMI)
a much-needed shot in the arm, the Ford administration
handed it an unprecedented deal. Marianas businesses
would be allowed to ship products to the United
States without quotas, tariffs, or duties. They
could even sew the "Made in the USA" label into
their products. But--and here's the real coup--they
wouldn't have to adhere to American labor or
immigration laws.
As the new arrangement went into effect, so
did the laws of economics. Entrepreneurs from
China, Taiwan, and South Korea rushed to set
up factories for American clothiers (including
J.Crew, Ralph Lauren, and Brooks Brothers) on
Saipan, the most populous island in the Mariana
archipelago. To make the blue jeans and oxford
shirts, factory owners recruited heavily from
the slums and farms of Asia. In the two decades
following the 1975 treaty, the CNMI's
population increased by more than 250 percent.
Fifteen thousand Chinese migrated to the island
of Saipan alone. By the late '90s, the CNMI
was sending $1 billion in textiles annually
to the U.S. mainland.
When workers arrived, they found a grotesque
parody of everything the name United States
is supposed to represent. According to a 1997
federal report, "Violations of labor standards
and other abuses appear common.... Chinese contract
workers allegedly work under `shadow' contracts
signed in their home country that subvert their
rights under the U.S. Constitution.... There
are numerous reported cases of retaliation against
workers filing complaints. Foreign contract
workers report being victims of such crimes
as rape, assault, and forced prostitution by
those who have recruited them to work in the
CNMI." The feds even documented
that many workers unwittingly signed contracts
that "forbade the worker[s] from falling in
love, having a baby, or protesting about labor
conditions."
The anecdotal evidence is equally disturbing.
A 1998 article in Time magazine told
the story of a 26-year-old Chinese woman named
Li Li who worked 18-hour days in a factory cutting
textiles: "At night she and 700 other workers
were locked up in company barracks infested
with rats and equipped with just one outside
toilet for every 50 people. The residents were
allowed out only on Sundays for a maximum of
one hour. When she complained about conditions,
according to her account, she and another female
worker were beaten by factory foremen wielding
heavy dressmaking scissors." The abuse of the
workers was so extensive that in 1986 the Reagan
administration--not exactly known for its stellar
enforcement of labor laws--sent a letter sternly
reprimanding the CNMI.
In 1995 the government of the Philippines--even
less well-known for enforcing labor laws--banned
new workers from going to the Marianas.
But it was something else that happened that
year--the Senate's vote to impose U.S. immigration
laws on the islands--that finally made the CNMI
get serious about influencing Washington. In
an effort to prevent the immigration bill from
becoming law, the islands' government hired
the law firm Preston Gates to lobby legislators
in the House. More specifically, it hired the
firm's top lobbyist, Jack Abramoff, a longtime
right-winger who viewed the Marianas assignment
as an ideological crusade. In an interview with
The Washington Post's Juliet Eilperin
last year, he compared federal regulation of
the CNMI to the Nazis'
Nuremberg laws: "The[y] are immoral laws to
destroy the economic lives of a people." In
assembling his team for the Marianas account,
Abramoff plucked conservative lobbyists from
key congressional offices--two came directly
from Tom DeLay's staff. He also picked Patrick
Pizzella.
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sk Pizzella about his work for Preston Gates
and he'll call it "ancient history," say "I
don't want to go down memory lane," and note
that he's "not in a policy-making position regarding
the Marianas." But Pizzella's history with the
Marianas isn't that ancient at all. Until a
few months ago, Pizzella worked on the Marianas
account, tasked with building sympathy for the
CNMI within the conservative
movement. It was an assignment to which he was
well-suited, having spent his entire adult life
in GOP circles. As a senior at the University
of South Carolina, he'd hurried his graduation
in order to help organize Ronald Reagan's 1976
primary campaign in Nebraska and Wisconsin.
After Reagan became president, Pizzella bounced
from agency to agency, accruing an array of
conservative friends. "You would just always
see him around," says the Heritage Foundation's
Dan Mitchell.
Much of Pizzella's coalition-building on behalf
of the Marianas was typical Beltway networking.
"He'd come to Grover Norquist's Wednesday meetings
to hawk his goods," says one conservative. When
CNMI officials came to
Washington, Pizzella hosted dinners at downtown
eateries like Sam & Harry's steakhouse, where
they met with conservative activists. But Pizzella
also deployed a device considerably more persuasive
than filet mignon: the fully paid tropical junket.
Between 1996 and 1998, Pizzella brought Republicans
on regular jaunts to the islands--I spoke to
eleven he'd personally invited. By The Wall
Street Journal's estimate, more than 100
representatives, congressional aides, and activists
accepted Preston Gates's invitations. Nor was
it just Hill dwellers. Pizzella specialized
in courting conservative intellectuals and journalists.
In 1997 he organized a trip that included Clint
Bolick (of the Institute for Justice), John
Fund (of The Wall Street Journal), Kellyanne
Conway (a pollster), Ron Bailey (of Reason),
and Marc Lampkin (then general counsel to the
House Republican Conference), among others.
As one think-tank denizen told me: "If you were
a conservative intellectual and you didn't get
invited, you just knew you weren't cool."
Pizzella's guests flew first-class, dined at
fine restaurants, and stayed at the beachfront
Hyatt Regency, where they spent evenings lounging
at the hotel's bar. When DeLay visited the CNMI
over New Year's Eve in 1998, he played two rounds
of golf at the Lao Lao Bay course.
But Pizzella also made sure the junkets played
to his vacationers' ideological predispositions.
On the face of it, the Marianas development
strategy wasn't necessarily one conservatives
would cheer. Anti-Communists might have been
upset to learn that some of the islands' garment
manufacturers are indirectly owned by the Chinese
government, which presumably uses the profits
to fund its military. Social conservatives would
have been troubled by anecdotes of coerced abortions.
But Pizzella's tours were carefully calibrated.
For libertarians, they emphasized the islands'
lack of regulations. ("It is a perfect petri
dish of capitalism," DeLay has proclaimed.)
For social conservatives, they highlighted the
islands' growing church population. Pizzella
even arranged for Bolick, a staunch proponent
of school choice, to meet government officials
to discuss the CNMI's
interest in school vouchers. As David Cahn,
a former consultant to the Marianas, puts it,
"Pat's very effective. Visitors to the island
seemed to get all the right information."
There are several ways to measure the work
Preston Gates did on the Marianas' behalf. For
starters, consider the propaganda generated
from just that one 1997 trip led by Pizzella.
Bolick returned to defend the Marianas in editorials
for Human Events and The Wall Street
Journal. Bailey penned his fond observations
of the island in The American Enterprise.
And the Heritage Foundation's Mitchell, another
junketeer, wrote in The Washington Times
that "Washington politicians should cease their
assault on Saipan." Another way would be to
look at the firm's billing--more than $8 million
for the CNMI account over
five years--or its own explanation of what that
money bought. In a memo to the Hong Kong textile
mogul Willie Tan, intercepted by The Washington
Post in 1998, Abramoff wrote that, "thanks
to past trips," the CNMI
had "many friends on the Appropriations Committees
in the Congress." But perhaps the best way to
measure Abramoff's and Pizzella's work on behalf
of the Marianas is this: Despite all the reports
of abuses, Congress hasn't passed a single piece
of legislation to reform business practices
there.
Considering the $70 million that unions spent
on the Democrats' behalf in 2000, it's hardly
surprising that the Bush administration's early
policies and appointments have been labor-unfriendly.
The administration's guiding principle, one
transition official told U.S. News & World
Report, is to "stick it to labor." So ergonomics
regulations have been revoked, and funding for
a program to eliminate child labor abroad has
been slashed by $15 million. Labor Department
appointments have included Linda Chavez--whose
selection seemed deliberately designed to razz
labor--and Supreme Court Justice Antonin Scalia's
son Eugene, an orchestrator of business's campaign
to quash ergonomics regulations. And now Pizzella
will oversee the department's budget and organizational
infrastructure.
What's harder to fathom is labor's lassitude
in responding to this onslaught. When I mentioned
Pizzella to Ann Hoffman, legislative director
for UNITE, the textile
workers' union, she paused and then replied,
"Wait, exactly who is this guy again?" Charles
Mercer, of the AFL-CIO's
Union Label and Service Trades Department, said,
"The name doesn't ring a bell." And Bill Samuel,
a lobbyist for the AFL-CIO,
told me, "We haven't really looked into him."
Oops.
FRANKLIN
FOER is an associate editor at TNR.
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