PBS NewsHour - 1996-03-18

Channel: malgent

Transcript

Language: English (original, YouTube automatic captions)

[0:05] Good evening. I'm Jim Lehrer. On the

[0:07] NewsHour tonight, part one of a series

[0:09] on the realities and politics of

[0:11] economic security with Margaret Warner

[0:13] in Dayton, Ohio, side of the big GM

[0:16] strike, and pollsters Linda DiVall and

[0:18] Stanley Greenberg. A new battle over

[0:21] timber in the Pacific Northwest, Robert

[0:23] Minett reports. And the fight over

[0:25] product liability laws, Elizabeth

[0:27] Farnsworth runs a debate. It all follows

[0:29] our summary of the news this Monday.

[0:32] Major funding for the NewsHour [music]

[0:34] with Jim Lehrer has been provided by the

[0:35] Archer Daniels Midland Company, ADM,

[0:38] supermarket to the world.

[0:42] And by New York Life, yet another

[0:45] example of New York Life's wise

[0:47] investment philosophy.

[0:51] And by the Corporation for Public

[0:53] Broadcasting, and by the annual

[0:55] financial support from viewers like you.

[0:58] Around the clock negotiations continued

[1:01] today in Dayton, Ohio to end the General

[1:03] Motors strike. The talks began yesterday

[1:06] morning. The 14-day old strike at two GM

[1:08] brake plants in Dayton has shut down 25

[1:11] of GM's 29 North America assembly

[1:14] facilities. More than 142,000 workers

[1:17] have been idle. A key issue between the

[1:20] United Auto Workers Union and GM is the

[1:22] buying of parts from outside suppliers.

[1:25] Dayton is the starting point of our

[1:27] week-long look at the realities and

[1:29] politics of economic insecurity. It

[1:31] begins right after this news summary. In

[1:33] another economic story today, MCI met

[1:36] rival AT&T's offer to give customers a

[1:39] free trial on the internet. MCI is the

[1:42] country's second largest long-distance

[1:43] telephone company. MCI will give

[1:46] customers five free hours of internet

[1:48] access per month.

[1:50] In Massachusetts today, 24-year-old John

[1:52] Salvi was convicted of killing two women

[1:55] in a shooting at two abortion clinics.

[1:57] He received a mandatory sentence of life

[1:59] in prison without parole. He was also

[2:01] convicted of armed assault with intent

[2:03] to murder five other people wounded in

[2:06] those 1994 attacks at the Boston area

[2:08] clinics. Salvi had pleaded not guilty by

[2:11] reason of insanity. In Washington today,

[2:14] the US Supreme Court agreed to review

[2:16] the size of buffer zones set up to

[2:18] shield abortion clinics from protesters.

[2:21] New York's current 15-foot zone was

[2:23] challenged by anti-abortion

[2:24] demonstrators in New York. They said it

[2:26] violated their free speech rights. In

[2:28] 1994, the court upheld a 36-foot zone

[2:32] around a Florida clinic.

[2:34] In New Orleans today, President Clinton

[2:35] made a pitch for his free trade

[2:37] policies. He participated in a

[2:39] ribbon-cutting ceremony at the opening

[2:41] of an enlarged wharf in the city's port.

[2:44] Mr. Clinton replied to claims that open

[2:46] markets mean lost jobs for American

[2:48] workers.

[2:50] 90,000 men and women across Louisiana

[2:54] already earn their living because of

[2:56] this port. The future is going to bring

[2:58] more trade, more opportunities, and more

[3:01] jobs because you embraced the challenge

[3:04] of change and look to the future with

[3:06] confidence.

[3:08] What we need is trade that is both free

[3:10] and fair, truly open, two-way open

[3:13] trade. The Port of New Orleans proves

[3:15] that if you have two-way open trade,

[3:17] Americans will do very well and we'll be

[3:20] just fine in the future.

[3:22] After his speech, Mr. Clinton went to

[3:24] Fort Polk in western Louisiana. He

[3:26] reviewed army troops just back from

[3:28] Operation Uphold Democracy in Haiti. He

[3:31] decorated five soldiers representing

[3:33] each branch of the armed services

[3:34] participated in that Haiti mission. He

[3:37] also paid tribute to families of service

[3:39] personnel now in Bosnia.

[3:41] In Bosnia news today, more than a dozen

[3:44] arson fires raised in a Sarajevo suburb.

[3:47] It is the last of five Serb districts

[3:49] scheduled to be transferred to

[3:51] Muslim-Croat control tomorrow. Serb

[3:53] gangs burned and looted the main market,

[3:56] warehouses, and dozens of apartments.

[3:58] United United Nations official called it

[4:00] a deliberate campaign of arson, robbery,

[4:03] and intimidation. Secretary of State

[4:06] Christopher met with the Balkan leaders

[4:07] today in Geneva, Switzerland. He sought

[4:09] to reaffirm their compliance with the

[4:11] Bosnia peace accords. Christopher

[4:13] praised the peace implementation force

[4:15] called IFOR.

[4:17] The killing has ended.

[4:20] The armies have withdrawn.

[4:21] [clears throat]

[4:23] This is an extraordinary accomplishment,

[4:26] one that many people thought would never

[4:29] be possible. So today, we will enter a

[4:32] new phase.

[4:33] As IFOR continues its mission, the

[4:36] international community will intensify

[4:38] its focus on the critical issues of

[4:41] human rights, freedom of press, war

[4:43] crimes, freedom of movement, and

[4:45] reconstruction.

[4:47] On the Taiwan story today, Chinese ships

[4:50] and planes again held military exercises

[4:52] southwest of Taiwan. In response,

[4:55] Taiwan's military demonstrated how it

[4:57] would repulse an attack from the

[4:59] mainland. The Chinese war games coincide

[5:01] with the run-up to Taiwan's presidential

[5:03] election this Saturday.

[5:05] In the Philippines, at least 80 people

[5:07] were killed and many more severely

[5:09] burned in a disco fire in a Manila

[5:11] suburb. The disco was filled with

[5:13] students celebrating the end of the

[5:15] school year.

[5:17] And that's it for the news summary

[5:18] tonight. Now it's on to our new series

[5:20] on economic insecurity,

[5:22] timber in the northwest,

[5:24] and a product liability debate.

[5:37] We begin tonight in Dayton, Ohio.

[5:39] There's a presidential primary there

[5:40] tomorrow as there is throughout most of

[5:42] the Midwest, and there's a strike at two

[5:45] GM brake plants there today as there has

[5:48] been for the last 14 days. Both events

[5:51] are relevant to economic security or

[5:53] insecurity, the new issue that is

[5:55] sweeping through the worlds of politics

[5:57] and economics right now. We will examine

[6:00] that issue throughout this week. Part

[6:02] one begins in Dayton with Margaret

[6:03] Warner.

[6:05] When workers went on strike at two

[6:07] General Motors brake plants in Dayton

[6:09] this month, it was just the latest

[6:11] economic jolt to a city that's had more

[6:13] than its share.

[6:15] This city of 200,000 is a resilient

[6:18] place. It has a rich history of

[6:20] invention and entrepreneurship. Dayton

[6:22] natives invented the cash register and

[6:25] built it into a worldwide business,

[6:27] National Cash Register or NCR.

[6:30] Daytonians Orville and Wilbur Wright

[6:32] invented the airplane. Other inventions

[6:34] helped make Dayton a major manufacturing

[6:37] center for auto parts, machinery, and

[6:39] tools.

[6:41] Today, manufacturing still provides 1/3

[6:43] of the jobs in Dayton. Fortune 500

[6:46] companies like multinational Mead

[6:48] Corporation are prospering. Smaller

[6:50] high-tech companies are growing.

[6:56] Unemployment in the Dayton area is just

[6:58] 5.1%

[6:59] better than the nation as a whole. The

[7:02] median family income is slightly below

[7:04] the national average, however, about

[7:06] $36,000.

[7:07] And it now takes most families two wage

[7:10] earners to achieve that.

[7:13] Still, this is a dramatic turnaround

[7:15] from the recession and double-digit

[7:17] unemployment of the late 1970s when some

[7:20] thought towns like Dayton would die.

[7:23] And yet, there seems to be a sense of

[7:25] unease.

[7:26] People don't feel that the community is

[7:28] on its back. They don't feel that the

[7:30] community is threatened per se. They

[7:32] just feel uneasy about their particular

[7:34] situation and how that's going to

[7:36] evolve. I think below that, there is

[7:38] kind of a fragility that people feel.

[7:40] They don't feel that uh perhaps uh if

[7:43] it's going well today, that it'll

[7:44] necessarily be going well tomorrow.

[7:46] Corporate takeovers and restructurings

[7:49] at companies like NCR helped create that

[7:51] insecurity. NCR, which in its heyday

[7:54] employed 25,000 people here, shrank to

[7:57] 5,000 local workers before AT&T took it

[8:00] over 5 years ago. Since then, its

[8:03] workforce has been cut to half that.

[8:06] Those jobs are being replaced, but many

[8:09] are in the lower-paying service sector.

[8:11] And few of the newer manufacturing jobs

[8:13] at smaller firms offer the hefty wage,

[8:16] overtime, and benefit packages that

[8:18] blue-collar workers had come to expect.

[8:23] One Dayton institution is profiting from

[8:25] all this upheaval. Sinclair Community

[8:28] College does a booming business in

[8:30] retraining.

[8:32] Tens of thousands of Daytonians have had

[8:34] to cope with these changes in their

[8:35] professional and personal lives.

[8:38] David Gaylor, who's 45, had parlayed his

[8:42] master's degree into a 13-year career in

[8:44] human resources at NCR, then AT&T. But

[8:49] last fall, he was downsized out of his

[8:51] job. For now, he's working for NCR as a

[8:54] short-term independent contractor and

[8:56] counts on his wife's teaching salary to

[8:58] help them support their three teenagers.

[9:03] At 57, Lucille Dursch is taking computer

[9:06] classes at Sinclair after being

[9:08] downsized out of NCR AT&T.

[9:11] First, her NCR assembly line job was

[9:13] moved to Colorado, so she joined the

[9:15] company's cleaning staff. Last summer,

[9:18] AT&T eliminated all its union janitorial

[9:21] jobs and contracted out the work. She

[9:24] took early retirement to preserve her

[9:25] health insurance.

[9:28] Union membership has helped protect

[9:30] 45-year-old Tony Currington so far. A

[9:33] worker at one of the GM brake factories,

[9:35] he isn't taking part in the strike there

[9:37] because he works on non-GM contracts.

[9:40] This father of five enjoys a comfortable

[9:42] life thanks to his $19-an-hour wage and

[9:45] his wife's salary as an emergency room

[9:47] nurse.

[9:49] The fact that Jeff Woodward, 48, has his

[9:51] own plane helped salvage his career

[9:53] prospects. He left LexisNexis last

[9:56] spring after Mead Corporation sold it to

[9:58] foreign owners. After 6 months out of

[10:01] work, he began commuting each week to

[10:03] work as chief financial officer of a

[10:05] company in Florida. His wife teaches

[10:07] school.

[10:10] Gina Clark, 35, is a single mother who

[10:13] used to make good money in the cable TV

[10:15] business. But a series of restructurings

[10:18] in the communications industry left her

[10:20] without steady work a year and a half

[10:22] ago. She now does temporary work at $10

[10:25] to $12 an hour, most recently at NCR

[10:28] AT&T and at Lexus Nexus.

[10:31] See how

[10:32] you kind of see how this part fits

[10:34] together,

[10:35] At 39, Harvard Business School graduate

[10:38] Jim Whalen is doing well. He's executive

[10:41] vice president of Gem City Engineering,

[10:43] a growing high-tech manufacturing firm.

[10:46] Gem City sells automation equipment to

[10:48] microelectronics companies worldwide.

[10:51] His wife used to teach school, but now

[10:53] stays home raising their four children.

[10:58] We gathered these six Dayton residents

[11:00] to talk about how they've come to terms

[11:01] with this time of economic change. We

[11:04] met last Friday morning at the Engineers

[11:06] Club, a downtown landmark founded in

[11:09] 1914

[11:10] by two of the city's business pioneers.

[11:14] Thank you all very much for being with

[11:15] us. Dave Geller, let me start with you.

[11:18] How different is your economic situation

[11:20] today than what you expected, say, when

[11:22] you got out of college? What you thought

[11:24] your life, your professional life was

[11:25] going to be like? Well, I think when I

[11:27] graduated from college back in the '70s,

[11:29] I had a I had a perception that my

[11:31] career would be with maybe one or two

[11:33] companies and that it would last as long

[11:36] as I wanted it to, but the security

[11:38] would be there. And I think that over

[11:39] the over the past two decades, I've I've

[11:42] had an awakening to the fact that it's

[11:43] not that way anymore. I myself have been

[11:45] with a number of companies, the last one

[11:47] being

[11:48] AT&T GIS here in Dayton. The former NCR.

[11:51] The former NCR, right. And that was a

[11:54] 13-year relationship and unfortunately,

[11:57] uh

[11:58] that ended. My my whole outlook on

[12:02] career has changed and moved from a

[12:04] security standpoint to one that I think

[12:07] the key is going to be flexibility. I

[12:09] have to be flexible and probably other

[12:10] people in the workforce are going to

[12:11] have to be flexible to be able to adapt

[12:13] to the needs the changing needs in the

[12:15] workforce and be able to meet those

[12:16] needs with some kind of skill set that

[12:18] we hopefully have. So.

[12:20] Um Lucille, there's you've had to go

[12:21] through a lot of

[12:22] changes also. Um tell me how you've

[12:25] coped with that. You're very insecure.

[12:28] I haven't got the skills for today's

[12:31] work world

[12:32] and I'm going back to school at Sinclair

[12:35] and hopefully I can find a good job. I'd

[12:38] love to go back to AT&T GIS.

[12:41] Um but not in the area that I was in.

[12:45] Maybe on the same floor, but um

[12:48] because I cried when I left there.

[12:50] And um

[12:51] my financial status has dropped

[12:55] dramatically. Tony Cranston, you are at

[12:58] the GM plant. You're not on strike

[12:59] because you're working on parts for

[13:01] non-GM plants, but tell me

[13:04] how has your career

[13:07] followed or not followed the

[13:08] expectations you had when you started

[13:10] out? My expectations of my career was in

[13:13] banking. I did that for 10 years and I

[13:16] always wanted to get into a field where

[13:19] I could kind of grow and and and and

[13:22] earn a decent wage to provide for my

[13:23] family. So,

[13:25] I had the opportunity to join the GM

[13:27] family. It's not really what I like

[13:29] doing, but I I don't think anybody

[13:32] and I tell my kids this too that, you

[13:33] know, you're going to always

[13:35] get into something that you think you

[13:36] like and after a while you find that you

[13:38] don't like it, but you stay there

[13:39] because of the rewards or financial

[13:41] security that you have.

[13:42] So, how secure do you feel

[13:45] financially or or economically? We've

[13:47] had a lot of plants that through GM

[13:49] that's closed and and gone south and

[13:52] gone north the borders. So,

[13:55] uh we're always in a tenuous situation,

[13:57] and and everybody's stressful and

[13:59] everybody's on pins and needles, but

[14:01] everybody's kind of

[14:02] got to keep a positive note about it.

[14:05] Jeff Woodward, you've also had to make

[14:06] some rather major changes in your life

[14:09] after leaving Mead Nexus Lexus.

[14:13] How how secure are you feeling? I think

[14:15] the realization for me is that uh

[14:18] uh the kind of lifelong security my

[14:21] father father retired from NCR after 35

[14:23] years uh

[14:25] here in Dayton and uh those kind of days

[14:27] are gone.

[14:28] And um we are all, I think, moving

[14:30] toward becoming really a nation of uh

[14:33] independent contractors to a large

[14:35] extent. Once you accept that,

[14:39] if you have the skill sets and and the

[14:41] educational background to adapt, if you

[14:43] can be an adapter,

[14:45] then really, in a way,

[14:47] there's about as much security from

[14:49] being able to do that

[14:50] as there was from

[14:52] being associated with a major company on

[14:54] a lifetime situation. Explain that. What

[14:56] do you mean? Well, just like a company

[14:59] has a product, you have a product to

[15:00] offer. The product is yourself.

[15:02] And if you if you can keep that product

[15:05] new and alive and if you can keep it

[15:07] optimistic

[15:09] and meet the challenges, then I think

[15:11] you're absolutely in better shape to

[15:14] dictate your own future

[15:16] than you are if you are a cog in a wheel

[15:19] and the wheel gets sold from machine to

[15:22] machine

[15:23] and the new owner of the machine may not

[15:26] think that wheel's very important.

[15:28] And I would rather be in control.

[15:31] Gina Clark,

[15:32] you've also gone through some a lot of

[15:34] changes. Starting with an acquisition in

[15:37] going all the way back to 1987, the

[15:40] company I was working for was was

[15:41] bought. So, I was displaced and so I

[15:44] moved to Dayton in 1988 and very quickly

[15:46] after moving to Dayton, the company I

[15:47] was working for was bought and sold

[15:50] again.

[15:52] So, this is this has gone on for several

[15:53] years, but most recently I've gone from

[15:55] making well over 50,000 to making less

[15:58] than $12 an hour. So, yeah, not feeling

[16:01] real secure.

[16:02] And last night I was doing my taxes and

[16:04] it wasn't counting the numbers on my

[16:05] W-2s, it was counting the number of my

[16:08] W-2s because I'm now currently working

[16:09] as a temporary. And Jim Whalen, now your

[16:12] company

[16:13] is uh benefiting from this changing

[16:17] economy.

[16:18] >> And we are a designer and builder of

[16:20] automation equipment and our niche is

[16:22] really in the microelectronics, the

[16:24] computer field. We've been able to

[16:26] increase our exports and also increase

[16:29] our business domestically to the point

[16:32] where over the last uh 6 years we've

[16:34] we've more than doubled our business,

[16:36] grown at it over 15% annually. So, we've

[16:39] been a real success story, I feel like,

[16:41] in Dayton, Ohio. And how personally

[16:43] secure do you feel?

[16:45] I I feel very secure.

[16:47] Let's talk a little bit about, in fact,

[16:49] what impact as you're all coping with

[16:51] the changing economy it does have on

[16:53] your family life. Dave? Well, I think

[16:56] there's there's there've been some pros

[16:57] and cons to it. The cons, of course,

[17:00] the boys I have two teenagers or three

[17:03] teenagers for that matter, but the two

[17:04] younger ones have

[17:06] periodically asking, "Have you got a job

[17:08] yet? Have you got a job yet?"

[17:10] Uh on the other hand, they see me more

[17:12] and I've been able to do more things

[17:14] of personal interest off

[17:17] with the community as well as

[17:19] uh spending more time with them. Jeff,

[17:21] what about you?

[17:23] Really, um even though I commute to

[17:25] Gainesville, Florida, the reality is the

[17:28] family tells me that I'm easier to live

[17:30] with now than I was before when I was

[17:32] spending uh 60 or 70 hours a week

[17:35] with Lexus at that time. I I have to

[17:38] disagree. I have to disagree because I

[17:40] have been a single parent for years

[17:42] and when you're making the kinds of

[17:44] money I was making with an expense

[17:46] account, with the ability to as as you

[17:48] said to come and go as you please, um I

[17:50] never had I never understood all of the

[17:52] the

[17:53] slings and arrows that were, you know,

[17:55] thrown at single parents because we just

[17:56] never experienced any of that. I had

[17:58] when I lived in Houston, I had a nanny

[17:59] and a housekeeper and never had to do

[18:01] any of those, you know, things. I could

[18:03] spend time with my son and do my job

[18:05] well. And when that kind of income goes

[18:07] away and you have to work, you have to

[18:08] be someplace at 8:00 and leave, you

[18:11] know, whenever the boss's project is

[18:12] done and get permission to go to a

[18:14] dentist appointment, much less your

[18:15] son's football game, it changes your

[18:17] whole life. And my son, Jordan, has been

[18:19] extremely patient, but his patience is

[18:22] running thin, I think.

[18:24] Lucille, what about you?

[18:26] As as you get older, you find out your

[18:28] skills aren't up to

[18:30] date and as you get older, I don't you

[18:33] can't prove it, I guess, but they don't

[18:35] want to hire the older folks

[18:37] for all kinds of reasons and I'm also

[18:40] kind of being educated on that at school

[18:43] about how the

[18:45] work world looks at older employees.

[18:47] They may be dependable, but sometimes I

[18:49] guess they're set in their ways and

[18:50] they're not flexible.

[18:52] And I'm very flexible and I'm very

[18:54] dependable.

[18:55] >> [laughter]

[18:56] >> Jim, let me ask you, what

[18:59] I mean, you your company is very

[19:00] involved in the global economy. Do you

[19:03] think that's all to the good as we

[19:06] as we move, all of us, into this global

[19:08] economy or do you think there downsides?

[19:11] Of course, one of the political issues

[19:12] is the whole issue of of trade barriers

[19:15] which Pat Buchanan advocates. I think a

[19:17] free

[19:19] uh world

[19:20] trading society is is important. Um I

[19:23] think that if we put any kind of

[19:24] barriers up that we're going to keep

[19:27] competition out, we're going to become

[19:30] um more inefficient. I I'm not against

[19:33] multinational competition. I mean, I

[19:35] want to make myself extremely clear. I I

[19:37] love the fact that while I was with AT&T

[19:39] for a short time, that all the work that

[19:41] I did was international. I was

[19:42] constantly on the phone to to Russia, to

[19:44] Hong Kong, you know, it was fascinating

[19:46] and it was leading edge and it was

[19:47] wonderful, but the people that I was

[19:49] working around had watched people that

[19:50] they'd worked with for 35 years lose

[19:52] homes, commit suicide. So, I'm thinking

[19:55] to myself, if that's the cost of

[19:58] branching out into this many markets

[20:00] this fast, then maybe we need to step

[20:02] back and take a look at this. And I'm

[20:03] not saying slow down the process, but

[20:05] let's let's take a look at it and say,

[20:07] are we going the right way? One of the

[20:09] unfortunate things with these

[20:10] multinational companies is that they

[20:13] have pressure, they're publicly traded,

[20:14] they have pressure for quarterly

[20:16] earnings results, period. And

[20:20] you know, if they have to they're very

[20:22] blatant about if they have to lay people

[20:24] off or cut costs, that's what they do to

[20:26] meet their quarterly earnings so their

[20:27] stock price can stay up. One advantage

[20:30] that Jim City Engineering has is that we

[20:32] are a a smaller company, we have 500

[20:34] employees, we've been in business 60

[20:36] years, privately held, and we don't have

[20:39] these quarterly pressures. We have a

[20:40] tremendously loyal workforce. Our

[20:43] average tenure of people is is more than

[20:45] 12 years, and we've been able to to do

[20:48] that because we're good to the people

[20:51] when times are

[20:52] tough or whatever, we don't go through

[20:54] those exercises. So,

[20:56] it's unfortunate that these

[20:58] multinationals, but it's a reality that

[21:01] they have to

[21:03] they're victims of the shareholders in

[21:05] this quarterly earnings.

[21:07] >> I'm not too sure that I buy that. I'm

[21:09] not too sure it's not AT&T management

[21:12] responding to bonus plans.

[21:14] AT&T lays off 40,000 people and the

[21:18] chairman gets a $5 million

[21:20] bonus payout.

[21:21] There's something not right about that

[21:23] equation. Oftentimes companies look for

[21:26] the magic fix it. We're into

[21:28] reengineering, we're into

[21:29] infrastructural changes and things like

[21:31] that. Kind of like the soup of the day,

[21:32] what works today. And the issue is we

[21:35] don't give it time to nurture, to to to

[21:38] progress, to check it out. We want to go

[21:40] for the next quick fix, and oftentimes

[21:42] when that happens, people get caught in

[21:44] that shuffle. To me, the the movement of

[21:47] the workforce is going to be more

[21:48] towards the area of small business. I

[21:50] think we're going to see a

[21:52] a boom in in people looking at small

[21:55] businesses as an option career-wise and

[21:58] as a as a professional

[21:59] direction for their for themselves

[22:02] and less so on the big corporations.

[22:04] >> Do you think that

[22:06] this changing economy has affected the

[22:08] whole loyalty issue, the loyalty

[22:10] question, the loyalty employees feel to

[22:12] companies as well as vice versa? Well,

[22:14] you know, I can kind of simplify it by

[22:16] by saying there isn't any. I think

[22:18] loyalty is pretty passe. I think most

[22:21] people would settle for fairness at this

[22:23] point in time. That that treat me

[22:25] fairly.

[22:27] Treat me if you come in and buy my

[22:29] company, learn my skill set, learn if I

[22:31] what I can do for you before you just

[22:33] lop off 20% just to make the numbers.

[22:37] Make sure it's the right 20%. Does

[22:39] anybody here think that the government

[22:41] should be stepping in to try to soften

[22:44] the effects of all these political

[22:45] change of all these economic changes

[22:47] we're seeing?

[22:48] I I think we've proven to ourselves in

[22:51] the past that whatever the government

[22:53] steps into it mucks up.

[22:57] At least that's what's proven to me.

[22:59] Does anyone feel differently on this

[23:00] question about government's role?

[23:02] Lucille?

[23:04] Well, I would just like to see them

[23:05] continue or improve

[23:07] uh

[23:09] the assistance to help displaced workers

[23:11] to get back on their feet. I would like

[23:14] more, I guess you'd say, financial

[23:15] assistance trying to get my education up

[23:18] to some kind of skill. We need an an

[23:20] environment nationally and locally

[23:23] that's going to be conducive to small

[23:25] business and growing small business and

[23:27] and making that the backbone of the

[23:29] United States.

[23:31] The other important point though is

[23:32] education and training. We need to have

[23:35] that addressed at the local levels, at

[23:37] the state levels, and at the national

[23:39] level. And and I think that that's

[23:41] crucial to develop a a good quality

[23:44] workforce in the United States.

[23:45] >> And are any of the major political

[23:47] figures on the national scene do you

[23:48] think speaking to these issues in a

[23:50] compelling way?

[23:52] Well, you read where Pat Buchanan has

[23:54] come out and

[23:55] we've talked about AT&T

[23:57] this this day that and he's pretty much

[24:00] skewered Bob Allen for the layoffs. And

[24:03] yet US News and World Report said he is

[24:05] not releasing any of his AT&T stock. So,

[24:08] yeah, the words are there. You hope that

[24:10] what they're saying is valid and true,

[24:12] you trust it is, but on the other hand

[24:14] actions can speak louder than words. And

[24:16] and is that just a ploy to be elected or

[24:19] is it in actuality his stand and his

[24:22] concern about the future work workplace

[24:25] impact? Gina? And I also think you know,

[24:28] actions do speak louder than words. I

[24:29] would really like to see the current

[24:31] administration just stick to the

[24:33] original promises that it made.

[24:35] Do I trust any of the candidates?

[24:38] Not very much.

[24:39] >> Tony?

[24:39] >> That's that's my sentiment there.

[24:41] I have

[24:42] absolutely no trust. If I can't reach

[24:44] out and touch them, I you know, I just

[24:45] don't trust them. But this this is the

[24:47] thing that Jeff is talking about that

[24:49] every time a government gets in, you

[24:51] know, it seems like there's more hands

[24:53] in the pie. Somehow somebody else

[24:54] benefits other than the small businesses

[24:57] or the person who's actually doing the

[24:59] work. I agree with him completely. I

[25:01] think a lot times they promise you what

[25:03] they think you want to tell you what

[25:04] they think you want to hear. Then when

[25:06] they get in there,

[25:07] either they've changed their mind or

[25:09] somebody vetoed them down.

[25:11] So, they don't tell you they haven't got

[25:13] the all in all power to do everything

[25:15] they're promising you. When this country

[25:18] started, the people in government were

[25:19] something else before they were in

[25:21] politicians. We now have professional

[25:23] politicians. The idea that you can be a

[25:25] politician all your life and be prepared

[25:28] to deal with the kind of problems and

[25:29] questions that this country has anymore,

[25:31] I think I think we're past that point.

[25:33] Well, thank you all very much. This has

[25:34] been terrific. Thanks.

[25:36] Now, put in these Ohio voices into a

[25:39] national political context, it will be

[25:41] done by two pollsters, Republican Linda

[25:43] DiVall who worked on the Gramm

[25:45] presidential campaign and Democrat

[25:46] Stanley Greenberg who worked on the 1992

[25:49] Clinton-Gore campaign. Linda, are those

[25:51] folks in Dayton representative of the

[25:53] country as a whole right now? I I think

[25:55] they are for a couple of reasons. Number

[25:56] one, you see that people are struggling

[25:58] with concern about their future economic

[26:00] security.

[26:01] What we're seeing today is that people

[26:03] now begin are beginning to understand

[26:04] that they will go through five, six,

[26:06] eight different career changes, that

[26:07] it's not the same as it was 20 or 30

[26:09] years ago where you will be with one

[26:10] corporation. And that means that there's

[26:12] uncertainty perhaps not so much about

[26:14] the job they hold today, but five, 10

[26:16] years hence about their long-term

[26:18] financial security and their kids' place

[26:20] as well. What was interesting about that

[26:22] piece is how many of the people felt it

[26:23] was necessary to take on more personal

[26:25] responsibility for themselves in terms

[26:27] of job retraining, not just looking at a

[26:29] government hand up, but better preparing

[26:30] themselves to compete in an

[26:32] international global marketplace. A kind

[26:34] of an acceptance Stanley Greenberg up

[26:37] that this is the new reality. Do the

[26:39] polls Do the polls reflect that

[26:40] nationally?

[26:41] >> Um they do. And this is painfully real.

[26:44] I mean, this was a this is a

[26:45] I think an exceptional focus group

[26:47] discussion and I think brought out many

[26:49] of the currents that are there in the

[26:50] country. You've got people that are

[26:52] scrambling to put together an economic

[26:54] life, many jobs. One of the participants

[26:56] talked about multiple W-2s.

[26:59] The people feel they're on their own,

[27:01] they're putting these jobs together

[27:02] themselves. I mean, the economy is

[27:04] creating a lot of jobs, but they are

[27:05] perceived to be, and I think accurately,

[27:08] lower-paying jobs which requires that

[27:10] they have more family pressures, put in

[27:12] more work time, more overtime, multiple

[27:14] jobs. And it leaves people feeling that

[27:16] they are under enormous pressure. A lot

[27:18] of a lot of a lot of sense here that the

[27:20] family was under pressure as a

[27:22] consequence of this kind of economic

[27:23] change.

[27:24] >> What do you make of the line that we are

[27:25] a nation of independent contractors now?

[27:28] One man said.

[27:29] I think it's both true both as a I think

[27:32] an empirical statement and for some, I

[27:33] think particularly for the better

[27:34] educated and the professionals,

[27:36] I think exciting. For most of the

[27:38] others, I think they were scared of that

[27:40] of that role. And I think one of the

[27:41] problems that they have of government is

[27:43] the government [clears throat]

[27:44] hasn't been there. Their perception is

[27:45] the government hasn't been for them.

[27:47] They'd like to see that there's help for

[27:49] education and training in order to put

[27:50] together those skill sets to be able to

[27:52] be sure that you're going to be able to

[27:53] have portable health care or pensions if

[27:55] you're going to have this kind of

[27:56] instability. And I think they're looking

[27:58] for a different kind of government role

[27:59] in this new period. We'll get back to

[28:01] the government in a minute, but this

[28:02] independent contractor concept is as

[28:06] Stan Greenberg says, it only applies to

[28:07] people with

[28:09] a lot of training or a lot of experience

[28:11] or a lot of education, does it not?

[28:12] >> Well, not necessarily. I think there are

[28:13] a lot of people who are looking for

[28:14] flexibility in the workplace and they

[28:16] don't want to be wedded to going to a

[28:18] company and working 9:00 to 5:00. So,

[28:19] they're looking at working out of their

[28:21] house or working out of their plane or,

[28:23] you know, the golf course in my case,

[28:24] that's what I would strive for. But I

[28:25] think people are looking for some

[28:26] flexibility in the workplace where

[28:27] they're not wedded to sitting in a chair

[28:29] working 8 hours a day. So, they are

[28:31] saying to themselves, as as Jeff I

[28:32] believe said, you know, the product to

[28:34] offer is yourself. How is it that you

[28:36] can sell yourself and say to that

[28:37] corporation that they need you. Now,

[28:40] there a number of different ways of

[28:41] doing that, but I think flexibility,

[28:42] which a lot of people mentioned in that

[28:44] article, really is key and having the

[28:46] freedom from your workplace to spend

[28:47] more time with your family to eliminate

[28:48] some of those pressures that we're

[28:49] seeing in all of our [clears throat]

[28:50] polling data is very dominant.

[28:52] >> But my point my question is, does it

[28:53] have relevance beyond a certain economic

[28:56] and educational level?

[28:57] >> Well, I said we can [clears throat]

[28:58] romanticize this. I mean, for the for

[29:00] the professionals, this you know, and

[29:01] who can fly off to Florida for a job,

[29:03] that's one thing. My sense of these of

[29:05] these voters both in our research and

[29:07] also the ones you spoke to in Dayton,

[29:09] these are people who feel very

[29:10] vulnerable, powerless relative to the

[29:12] companies, knowing that they can be

[29:13] dropped in the next, you know, next

[29:15] quarter if they need to cut 20%.

[29:17] And I think they feel very much on their

[29:19] on their own and powerless and they're

[29:21] trying to deal with the consequences in

[29:22] their lives. How do you have to now have

[29:24] to permission in order to, you know, go

[29:26] to your kids' football game. They're

[29:28] living they're living the consequences.

[29:29] Now, let's go to this government

[29:30] question, Linda.

[29:32] The it was clear that none of those

[29:34] folks are depending on the government or

[29:36] expecting the government to do anything

[29:38] to help them out of this problem that

[29:39] they quote have right now. And it's a

[29:41] big problem. It's varying degrees and we

[29:44] heard the varying degrees here, but they

[29:46] don't look to government. Is that a new

[29:48] development? No, it's not and I think

[29:50] it's a very strong Midwestern flavor

[29:51] that you saw here as well, but a couple

[29:53] things on that point. Number one, I

[29:54] thought the participants in this group

[29:56] showed a remarkable degree of

[29:57] resiliency, that they were going to do a

[29:59] lot to take care of themselves and yes,

[30:00] they were going through some economic

[30:02] downturns. And the survey data is

[30:03] interesting because people believe that

[30:06] the future for this country will be

[30:07] optimistic, but they're worried about

[30:08] the standard of living and about a

[30:10] majority people said that the standard

[30:11] of living will fall, which is reflected

[30:12] in a couple of the uh respondents in

[30:14] terms of their view. But ultimately,

[30:16] when you look at prescriptions, they're

[30:18] saying, I think job retraining at the

[30:19] local level or the community level

[30:20] because they know our problems best. But

[30:22] if the government comes in, they'll just

[30:24] make the situation worse. Their

[30:26] intervention from up here does not do

[30:28] anything to take care of our local needs

[30:29] in terms of understanding our community.

[30:31] And if you just look at Dayton in terms

[30:32] of the small business creation,

[30:35] unemployment rate being only 5% uh if

[30:37] you go back and look at 1982, the height

[30:39] of the recession during Ronald Reagan's

[30:41] administration, we found in our survey

[30:43] research in that state that 80% were

[30:45] concerned about losing their job in the

[30:47] next year.

[30:48] Well, I think they're heroic. I mean,

[30:50] not just not just resilient, I think

[30:51] they're heroic and I think we're being

[30:53] too literal in their reaction to

[30:55] government. I mean, what they are saying

[30:57] is that we are scrambling, we're we're

[30:59] we're making this this personal effort

[31:01] to put together an economic life.

[31:02] Government hasn't been there for the

[31:03] small business, government isn't there

[31:05] for the person who works who works hard,

[31:06] plays by the rules. They want to make

[31:09] sure that there is support for

[31:10] education, training, there is support

[31:12] for the things that they are doing in

[31:13] order to rate you know, to support their

[31:15] families. They think the government's

[31:17] not been there, uh but that's not the

[31:18] same thing as saying government

[31:19] shouldn't be there. They're angry that

[31:20] the government hasn't played a more

[31:22] important role in support of their

[31:23] needs. There's another element to it,

[31:25] too, there at the end. There's this just

[31:26] absolute uh mistrust of the people,

[31:28] whether they're Democrats as you are,

[31:30] Mr. Greenberg, or Republicans as you

[31:32] are, Ms. DeVall. They don't trust any of

[31:34] you all.

[31:35] That's a That's a fair statement. I was

[31:36] let Linda answer that one.

[31:38] >> [laughter]

[31:38] >> Well, I think there is going to be a

[31:39] burden on on both presidential nominees

[31:41] as we go into this election to talk

[31:43] about which party is most capable of

[31:45] restoring economic prosperity and

[31:47] speaking to the middle class,

[31:48] particularly the financially squeezed

[31:50] middle class, which is vast at this

[31:52] stage.

[31:53] We did a survey not too long ago and we

[31:54] found out that it was just very evenly

[31:56] divided on this issue of restoring

[31:57] economic prosperity. 42% favored the

[31:59] Republicans, 37% favored the Democrats.

[32:02] That could flip anyway. What voters want

[32:04] to hear is not so much more government

[32:06] intervention, but who who which of these

[32:08] two candidates speaks directly to them

[32:10] and understands this tension that they

[32:12] experience on a daily basis, that they

[32:14] are financially pressed. And not that

[32:15] they want to have government step in and

[32:17] solve their lives. You saw that. They

[32:18] know that that's not possible, but

[32:20] understands their concerns and can try

[32:21] to get local government more involved.

[32:23] >> Well, there's also some basic conditions

[32:24] that make it possible to put together

[32:26] those W-2s. The administration's created

[32:28] 8 million jobs over the last four years.

[32:30] They know they're [clears throat] they

[32:31] don't believe they are high-paying jobs,

[32:33] but they do believe they're at least

[32:34] able to scramble and put together an

[32:36] economic life. If this had been four

[32:38] years ago with unemployment 7% this

[32:40] would have been a different kind of

[32:41] conversation. They wouldn't be able to

[32:42] pursue these personal strategies. So,

[32:45] the kind of growth we had over the four

[32:46] years makes this possible, but it's not

[32:47] enough. They want I think they want

[32:49] political leaders to recognize their

[32:51] struggle uh and they want to know that

[32:52] political leaders have a vision on how

[32:54] this can change. I don't think people

[32:56] are going to settle for this this uh

[32:57] this this outcome. Is recognize you both

[33:00] of you you used the word understand, you

[33:01] used the word recognize. Is that what

[33:03] the folks want now from their political

[33:05] leaders? Even if they can't solve the

[33:06] problems, at least talk about it and

[33:08] understand what they're all about.

[33:09] >> is a feeling that once people

[33:11] get elected to Congress and come to

[33:13] Washington, once the plane lands at

[33:15] Washington National Airport, that they

[33:16] have totally lost the ability to read

[33:20] into their voters why they got there in

[33:21] the first place in terms of any type of

[33:23] sensitivity to the problems that they

[33:24] experience. There is this disconnect and

[33:26] particularly on the presidential level,

[33:28] when you fly from airport to airport,

[33:29] tarmac to tarmac, people feel that

[33:31] they're really not in touch with voters'

[33:32] lives and that's And that's true

[33:33] elsewhere than

[33:35] Ohio. Oh, for sure. I mean, they're

[33:37] >> [clears throat]

[33:37] >> they're making an heroic effort. They

[33:39] want the political leaders as a as a

[33:40] starting point to recognize that they

[33:42] should be that what of their effort.

[33:44] They want to be the center of the story.

[33:45] They think our politics ought to be

[33:47] about their lives. Well, they're going

[33:48] to be the center of the story on the

[33:49] NewsHour all week. We're going to be

[33:50] talking about this. Thank you all for

[33:52] helping us helping us get it started

[33:53] tonight. Thank you.

[34:02] Still to come on the NewsHour tonight, a

[34:03] new battle over logging in the Pacific

[34:05] Northwest and the product liability

[34:07] debate. Rod Minear of KCTS, Seattle has

[34:10] the timber story.

[34:13] I'm ready to go to my sacred place and

[34:15] invite all my brothers and sisters to

[34:17] come with me.

[34:19] Defying [cheering] police orders,

[34:21] environmentalists recently marched up a

[34:23] logging road in the Olympic National

[34:24] Forest. You are subject to arrest beyond

[34:28] this point. In all, 89 arrests were made

[34:31] as protesters attempted to halt the

[34:33] clear-cutting of giant old-growth trees

[34:35] on a piece of US Forest Service land.

[34:38] Hey, Ben. How come I keep finding you up

[34:40] a tree? One protester climbed a tree

[34:42] hoping to escape capture.

[34:44] >> you all don't argue that clear-cutting

[34:46] of old-growth is is is, you know,

[34:50] a practical way of forestry, do you?

[34:52] Others voiced outrage at being

[34:54] handcuffed. I have not hurt anybody and

[34:57] I want these off. This scene is being

[34:59] repeated in national forests across the

[35:01] Northwest, which until recently had seen

[35:04] a truce in its war over timber. I'm

[35:06] aware I'm trespassing on public land.

[35:08] Yes. But some environmentalists say they

[35:10] have no choice but to break the law

[35:12] because of legislation Congress passed

[35:15] and President Clinton signed last

[35:16] summer. It's known as the salvage timber

[35:19] rider, which suspended some

[35:21] environmental protections and encouraged

[35:23] stepped-up logging of dead and dying

[35:25] trees. But the timber industry defends

[35:27] the special rider as vital to saving

[35:29] jobs. Chris West is with the Northwest

[35:32] Forestry Association. The bottom line is

[35:34] if we didn't have some protection from

[35:37] litigation, um we have continued

[35:39] gridlock. And the environmental

[35:41] community is upset because they can't

[35:44] uh use the courts to be obstructionists.

[35:52] With environmental laws on endangered

[35:54] species and clean water temporarily

[35:57] lifted, thousands of acres of federal

[35:59] forests in Washington and Oregon have

[36:01] been opened up to cutting through the

[36:03] end of this year.

[36:09] Supporters promoted the rider as a way

[36:11] to improve forest health by allowing the

[36:13] logging of timber that have been damaged

[36:15] by fire or bugs. But one section, which

[36:18] had nothing to do with dead or dying

[36:20] trees, also required the government to

[36:22] waive environmental laws in some areas

[36:25] so that healthy old-growth trees could

[36:27] be cut.

[36:31] Ostensibly, this was going to allow the

[36:33] harvest of dead and dying trees. Okay,

[36:35] well, sounds good. Uh what happened was

[36:37] the day after the president signed the

[36:39] bill, the timber industry went into

[36:40] court and succeeded in getting a whole

[36:42] series of judgments that had the effect

[36:45] of of expanding the scope of this

[36:47] logging rider. Across the country, it's

[36:50] estimated that 6 billion board feet of

[36:52] wood will be cut under the rider. Of

[36:54] that, about 600 million board feet of

[36:56] mostly healthy old-growth will come from

[36:58] Northwest forests. By comparison, it

[37:01] takes about 10,000 board feet of timber

[37:03] to build the average home. We've lost

[37:06] money uh the last several years trying

[37:08] to stay operating. Log shortage, price

[37:11] of logs and

[37:12] uh

[37:13] and uh the lumber market have all

[37:15] combined to to make it real tough for

[37:18] not only us, but most of the mills

[37:20] around this area that depend on public

[37:21] timber. For mill owners like Dave

[37:23] Beusée, the timber rider comes as a

[37:25] relief. It's the 55-acre stand of

[37:28] old-growth he's purchased rights to log

[37:30] in the Olympic National Forest that has

[37:32] been the focus of protests. Sales like

[37:34] this just give you that little lift

[37:39] out of the hole that sometimes make all

[37:41] the difference in the world to whether

[37:43] you survive or don't.

[37:45] Beusée's logging is well underway. Some

[37:47] of the trees here are 250 years old.

[37:50] Until the salvage rider passed, this

[37:52] site, like many others, was off-limits

[37:54] to cutting because of concern over

[37:55] harming fish and wildlife.

[37:58] Beusée says he's taken extra steps to

[37:59] protect the sale from environmental

[38:01] harm, such as leaving a 50-ft buffer of

[38:04] trees along a stream that drains into

[38:06] spawning grounds for trout and salmon.

[38:09] But critics say any clear-cutting like

[38:10] this threatens fish and wildlife.

[38:16] What we're seeing under this rider,

[38:18] big, ugly clear-cuts of ancient uh

[38:22] cathedral forest in the Northwest, this

[38:24] is the kind of thing that um

[38:27] the rider has enabled and

[38:29] um is really tragic because the

[38:31] consequences of it are that we're seeing

[38:34] the salmon streams running brown, uh

[38:37] we're seeing our formerly clean water

[38:40] uh

[38:40] uh being uh degraded. Quality of life

[38:43] here in the Northwest is is a function

[38:45] of healthy forest. It's all It's all

[38:47] going down the tubes and it's because of

[38:49] this rider.

[38:51] But the timber industry continues to

[38:53] insist the clear-cutting poses little

[38:55] threat.

[38:56] The release of these existing sales may

[38:59] result in the harvest of 10 to 12,000

[39:02] acres, which is a lot of land, but the

[39:04] president's forest plan uh covered 24

[39:08] million acres

[39:09] and 19 million acres of that was

[39:12] permanently preserved and protected. So,

[39:15] the harvest of 10 to 12,000 acres out of

[39:19] uh 24 million acres is just a drop in

[39:21] the bucket. Clinton, repeal the

[39:24] clear-cut deal. Environmentalists also

[39:27] remain angry at President Clinton for

[39:29] signing the salvage rider. To step up

[39:31] pressure for repeal, they recently

[39:33] staged a protest to coincide with a

[39:36] Seattle visit by the president.

[39:39] At a campaign event later that day,

[39:41] President Clinton said he had heard

[39:43] their message. We've done a lot of good

[39:45] things in the last 3 years

[39:47] and we made one or two and

[39:52] and we made one or two mistakes under

[39:54] the law of unintended consequences.

[39:57] And one of them was the unintended and

[40:00] unwarranted consequence of way that

[40:02] timber rider's been carried out. Patty

[40:04] Murray's going to help us fix it and I

[40:06] thank her for that.

[40:07] >> [cheering]

[40:07] >> Despite that presidential support,

[40:10] Senator Murray's proposal to repeal the

[40:12] rider was defeated last week in the US

[40:14] Senate. Congress is now considering

[40:16] another amendment attached to the

[40:18] omnibus budget bill that would slightly

[40:20] modify but not repeal the salvage timber

[40:22] rider. It would allow the government to

[40:24] offer timber companies either a

[40:26] substitute stand of trees or buy back

[40:29] their logging contracts in exchange for

[40:31] saving old-growth forests. Meanwhile,

[40:33] many environmentalists vow until

[40:35] lawmakers vote for repeal, they will

[40:37] continue their fight with civil

[40:39] disobedience in the forests of the

[40:41] Northwest.

[40:46] >> [music]

[40:51] >> Finally tonight, product liability.

[40:53] Elizabeth Farnsworth has that story. Are

[40:56] courts awarding excessive amounts to

[40:58] consumers who sue for defective

[41:00] products? That is the issue once again

[41:02] before Congress. Republicans had tried

[41:04] to limit awards as part of their

[41:06] contract with America last year, but

[41:07] that effort was defeated. Now they are

[41:09] back with a compromise version and with

[41:11] the support of some key Democrats. The

[41:13] Senate is expected to vote as early as

[41:15] tomorrow, the house later this week.

[41:18] President Clinton announced this weekend

[41:19] he would veto the bill. The legislation

[41:22] would limit punitive damages to either

[41:24] $250,000

[41:25] or two times so-called compensatory

[41:27] damages, awards for economic loss and

[41:30] pain and suffering. The higher amount

[41:31] would be awarded to the plaintiff.

[41:33] Businesses with 25 or fewer employees

[41:36] would pay the lower amount. A judge

[41:38] would be permitted in some cases to

[41:39] assess additional punitive awards for

[41:41] egregious conduct by large manufacturers

[41:44] and municipalities.

[41:45] The measure would limit each company's

[41:47] liability for non-economic damages such

[41:49] as pain and suffering to the business's

[41:51] percentage of responsibility for damages

[41:53] and would reduce the amount of damages

[41:55] that are awarded if the product was

[41:57] misused or altered. We now turn to two

[41:59] people who've been involved in the

[42:00] debate, Joan Claybrook, the president of

[42:02] Public Citizen, the consumer advocacy

[42:05] organization founded by Ralph Nader, and

[42:07] Paul Heward, a senior vice president for

[42:09] the National Association of

[42:11] Manufacturers. Thank you both for being

[42:13] with us. Mr. Heward, this bill is far

[42:15] more focused, more limited than a bill

[42:17] that had passed the house. Is it worthy

[42:19] of support? Oh, absolutely. I think uh

[42:22] what has happened here is that the uh

[42:25] practical realities have settled in on

[42:27] the house, which was much more ambitious

[42:29] uh

[42:30] and did have a uh so-called contract

[42:32] with America provision. They have fallen

[42:34] back basically to a bill that has been

[42:36] in the making for close to 15 or 20

[42:38] years

[42:39] uh which has strong bipartisan support,

[42:41] indeed was developed primarily while the

[42:44] Democrats were in control of both houses

[42:45] of Congress, has supporters such as

[42:47] Chairman Dingell

[42:48] uh

[42:49] of the House Commerce Committee, uh an

[42:51] ardent Democrat

[42:53] uh who supports this bill, Senator

[42:55] Rockefeller,

[42:56] uh a moderate if anything, hardly uh

[42:59] uh a man who is a front for the business

[43:01] community. Uh this again, uh a very

[43:03] reasonable, moderate bill

[43:05] uh

[43:06] goes back many years, is not really

[43:08] something that sprang out of whole cloth

[43:10] in the contract with America was the

[43:11] charge now being leveled by some people

[43:14] uh and we hope the president will

[43:16] reconsider his decision and sign it.

[43:18] Joan Claybrook, the bill does have wide

[43:19] part bipartisan support. What's wrong

[43:21] with it in your view? Well, it also has

[43:23] wide bipartisan opposition, I should uh

[43:25] point out. Uh uh what's wrong with this

[43:27] bill is that it would remove law and

[43:29] order for American corporations when

[43:30] they manufacture defective products that

[43:32] harm individuals. Uh the whole purpose

[43:35] of our court system uh where uh these

[43:37] cases are litigated, the civil justice

[43:39] system the envy of the world, by the

[43:41] way, uh is so that individual consumers

[43:43] can go into state court and to challenge

[43:46] manufacturers when they misbehave. And

[43:48] it's a very potent and powerful uh a

[43:51] capability. It's one of the few things

[43:53] that

[43:53] >> still do that though under this,

[43:54] couldn't But in a much more limited way

[43:56] and it's a it's so uh potent uh because

[43:59] it allows the average consumer to

[44:00] challenge the largest corporation

[44:02] America. We talk today uh particularly

[44:05] the business community talks today about

[44:07] personal responsibility for welfare

[44:09] mothers. And yet here they are fighting

[44:12] to get rid of their own personal

[44:13] responsibility when they manufacture

[44:15] their products. And indeed that will

[44:16] happen because the purpose of the civil

[44:19] justice system is to compensate

[44:21] individuals to deter manufacturers from

[44:25] uh manufacturing unsafe products, to

[44:27] punish those who engage in egregious

[44:29] misconduct, and to provide information

[44:31] to the rest of the consumers and prevent

[44:33] unsafe products from being manufactured.

[44:35] >> go through some of the specifics and let

[44:37] you describe why you think this would

[44:39] remove protections and you describe why

[44:40] you think it wouldn't. The caps on

[44:42] punitive damages.

[44:43] Well, caps mean that the largest

[44:45] corporations get the most protection.

[44:48] Uh that is if you're General Motors and

[44:50] you have uh billions of dollars of

[44:51] profits every year and a $250,000 cap is

[44:55] applied to uh you, it's like a fly swat.

[44:58] Uh and so they're doing exactly the

[45:00] opposite of what should do, which is uh

[45:02] what and what juries do on their own

[45:04] without this interference from the

[45:05] federal government, which is to apply a

[45:07] larger award for a larger corporation.

[45:09] Okay, Mr. Heward on that.

[45:10] >> Well,

[45:11] uh I think one of the long-standing

[45:14] concepts of Anglo-Saxon jurisprudence is

[45:17] that the punishment ought to fit the

[45:18] crime. Uh and the opponents of this bill

[45:21] are constantly talking about the need to

[45:22] punish corporate wrongdoers.

[45:24] Uh I can well imagine in the criminal

[45:26] justice system the outrage that would

[45:28] occur uh if you could draw 30 years uh

[45:31] in prison for jaywalking. And what we're

[45:33] saying is there ought to be some

[45:34] proportionality. There are indeed many

[45:37] large compensatory damage awards. Where

[45:39] a compensatory damage award for instance

[45:41] of 5 or 10 million dollars is awarded,

[45:43] the punitive damages would be 10 or 20

[45:46] million. And there are many cases of

[45:47] egregious conduct where you get large

[45:49] punitive damage awards. What we're

[45:50] saying here is if you have a relatively

[45:52] small economic injury, you know, and I

[45:55] will cite the proverbial $400 paint

[45:58] scratch on the BMW, you oughtn't be hit

[46:00] with 21 million in punitive damages.

[46:02] That's just ridiculous. It ends up

[46:04] costing the American consumer a lot of

[46:05] money because people have to build this

[46:07] into the cost of the product. Mr. Ms.

[46:09] Claybrook, what about the the compromise

[46:11] that was reached? A a judge, if there

[46:13] were really egregious wrongdoing by a

[46:15] company, could go beyond the

[46:18] limitations. Doesn't that provide some

[46:20] of the protection you would want? No, it

[46:22] really doesn't and there there two

[46:23] defects. The second defect in this

[46:25] punitive damage provision is that it

[46:26] bases it on your uh your damages. The

[46:30] way that punitive damages really should

[46:31] be awarded is to look at the conduct of

[46:33] the manufacturer, the size of the

[46:35] manufacturer, how long they knew the

[46:36] product was defective uh how many people

[46:38] were injured, whether they resisted

[46:40] taking it off the market. All of those

[46:42] are the factors that should be

[46:43] considered and are considered by juries

[46:45] today. This bill prevents that and says

[46:47] for example, if you're a woman who had a

[46:49] Dalcon Shield and you could no longer

[46:51] have children as a result you have small

[46:53] economic damages, you can't punish that

[46:55] manufacturer or allow the jury to to

[46:58] decide they want to punish that

[46:59] manufacturer for knowingly selling that

[47:01] product knowing that people wouldn't be

[47:02] able to have children uh if they used

[47:04] that product. And so the added to

[47:06] provision which you're asking about uh

[47:08] which was added to the bill is very

[47:10] complex and difficult, uh very um

[47:12] cumbersome and costly and difficult to

[47:14] to administer and the the managers

[47:16] report says in fact that the conference

[47:18] report on this bill that it's unlikely

[47:20] to be used with great frequency and in

[47:22] fact in state law where they have it,

[47:24] it's not there's not used very

[47:25] frequently. Mr. Heward. Well,

[47:27] uh

[47:27] the fact is is that uh the punitive

[47:30] damage cap is not limited

[47:32] uh to economic damages and indeed if you

[47:35] have a woman who has lost the right to

[47:36] bear children and the jury chooses to

[47:38] award her 10 million dollars for pain

[47:40] and suffering, which they easily could,

[47:42] the punitive damage cap is 20 million

[47:43] dollars. This is not insignificant. Uh

[47:46] people that are painting this

[47:48] uh

[47:49] as protection for American corporations

[47:52] >> on the pain and suffering or you could

[47:53] say there is there isn't in some cases

[47:55] compensatory damages. Well, there is

[47:56] there is in in joint and several cases,

[47:57] that is in cases where there's more than

[47:59] one defendant, non-economic damages are

[48:01] are completely limited. So in fact

[48:03] that's not true. There are many tricky

[48:05] things in this highly complex bill which

[48:07] are very difficult for the American

[48:09] public to understand and even very

[48:10] difficult for most lawyers to

[48:11] understand. Indeed it is a federal

[48:14] overlay you understand on state law.

[48:17] Today these cases are litigated under

[48:19] state law. Now we're going to have a a

[48:21] federal overlay that's been written by

[48:23] the business community. It's a one-way

[48:24] street just for them. There's nothing in

[48:26] there really for consumers. And the the

[48:29] the state courts and juries are going to

[48:30] be limited. They're not going to be able

[48:32] to use their judgment, listen to the

[48:34] evidence and the facts that they hear

[48:35] and make their own judgments.

[48:36] >> This is one of the reasons that the

[48:38] president has given for vetoing the law

[48:40] that there is this federal involvement.

[48:41] What do you think about

[48:42] that?

[48:43] >> describe that as egregious hypocrisy.

[48:45] You know, this is based on the

[48:46] Interstate Commerce Clause. I can

[48:47] imagine the howls we would hear from

[48:49] Ralph Nader if we said let's let the

[48:51] states determine whether you ought to

[48:52] have airbags in cars or seatbelts in

[48:54] cars. Basically, we are talking about

[48:56] products, we're talking about products

[48:58] that move in Interstate Commerce and

[49:00] about having uniform standards. But

[49:02] these aren't uniform. They're one-way

[49:03] street. They're uniform for the business

[49:06] community. If a state law is more

[49:08] disadvantageous to consumers, this bill

[49:10] leaves it alone. If a state law is more

[49:12] advantageous to consumers, it's limited

[49:14] by this bill. This is not a uniform

[49:16] bill.

[49:16] >> Okay, Mr. Heward, I want to move on to

[49:18] the whole question of joint liability,

[49:20] which would be abolished. Tell us why

[49:21] this is important. Explain what is in

[49:23] the law and why you think it's

[49:24] important.

[49:25] >> Well,

[49:26] again, uh I've heard the other side here

[49:28] talk about personal responsibility. Uh

[49:30] if you're only 2% liable for an injury

[49:33] uh and the other side was 98% liable, in

[49:35] some cases it's going to be the

[49:36] plaintiff. You know, this says if you

[49:37] alter or misuse the product, you remove

[49:40] the safety bars from the equipment, then

[49:41] you lose a finger.

[49:42] Uh if you're 98% responsible for your

[49:44] injury, the other side is 2%

[49:46] responsible, they're only going to have

[49:47] to pay 2%. Now, in the case of joint and

[49:49] several liability, this is being limited

[49:52] only to non-economic damages. Your full

[49:54] loss of wages, your compensatory damages

[49:57] uh for medical expenses, you can still

[49:59] go to the deep pockets and hit someone

[50:00] who is only 1% liable for 100% of your

[50:03] economic damages. Only in the area which

[50:06] tends to be a little fuzzy wuzzy, the

[50:07] pain and suffering awards, that they're

[50:08] going to say a manufacturer that's 2%

[50:10] liable only has to pay 2% of the award.

[50:13] Now, if that's not personal

[50:14] responsibility and if that's not

[50:15] reasonable, I don't know why we're here.

[50:17] What do you think what is wrong with

[50:18] that in your view? Well, first of all,

[50:20] this is is really a damages provision

[50:22] and it was designed by judges in order

[50:24] to have fairness to the consumer. Where

[50:26] there's more than one defendant, it says

[50:28] that whatever defendants are there and

[50:31] that caused the injury. Remember, these

[50:33] all have to be people who caused the

[50:34] injury, all entities that caused the

[50:35] injury, then the consumer must be fully

[50:38] compensated. And if it has to come from

[50:40] one, that's fine. If it can be shared,

[50:42] that's fine. That's the reason for the

[50:44] rule and they're denigrating pain and

[50:46] suffering uh uh

[50:48] uh awards and and damages by saying,

[50:50] "Well, in the case of pain and

[50:52] suffering, we dismiss that as being

[50:53] terribly important and therefore you

[50:55] don't get full recovery." And so, again,

[50:58] in the case case of someone who loses

[50:59] their reproductive rights, they don't

[51:01] get full recovery where there's more

[51:02] than one defendant, for example.

[51:04] >> reject the argument that the supporters

[51:06] of this bill, including Democrats, make

[51:08] that there needs to be a reform of tort

[51:11] law because there have been there there

[51:13] there are damages that are given that

[51:15] are way out of proportion to what

[51:17] happened I completely reject it. I

[51:19] completely reject it for two reasons.

[51:20] One is the current system has the

[51:22] capacity to deal with that. That's what

[51:24] the appeals courts are all about, the

[51:26] right to a new trial, the decisions by

[51:28] the judges to reduce the the award if

[51:30] they think it's egregious. So

[51:31] >> Okay, let me stop right there. What

[51:32] about that argument? What what's wrong

[51:34] with the way the current system's

[51:35] dealing with it?

[51:36] >> The current system's loaded against the

[51:37] defendants. What happens is is products

[51:39] get withdrawn from the market even

[51:41] though they're valuable products because

[51:42] companies make a common sense

[51:44] calculation.

[51:45] Uh there was something called Bendectin,

[51:47] an anti-nausea drug. Uh the company's

[51:49] annual profits from that selling it were

[51:51] $13 million. Their liability costs were

[51:53] $15 million. They withdrew it from the

[51:55] market. But lots of them they don't uh

[51:56] withdraw and so

[51:58] the issue is, first of all,

[52:00] does the current system handle it and

[52:02] the answer is yes. And the second issue

[52:04] is, is there an overload of cases that

[52:06] warrants making some enormous change

[52:08] like this? This is the most massive

[52:10] preemption of state law in the history

[52:11] of the United States. You don't think

[52:13] the figures are there to show that

[52:14] there's an overload of cases?

[52:15] >> There absolutely is not. The the total

[52:17] number of product liability cases is

[52:18] something under 100,000 a year. It's

[52:20] closer to 60,000 a year. The number of

[52:22] punitive damages in the last 25 years is

[52:24] 355.

[52:26] The the um the uh cases themselves are

[52:29] so small compared to all the other cases

[52:31] in the court system, the the the

[52:33] insurance for liability has gone down by

[52:35] 40% since 1987. The total cost of

[52:38] liability system is $4 billion, which is

[52:41] what we pay for dog food every year.

[52:42] This is not an overloaded system. What

[52:44] about these figures? Well, like a lot of

[52:47] figures, it's half full, half empty. Uh

[52:49] what they don't tell you is how many

[52:50] manufacturers

[52:52] uh pull products off the market because

[52:54] of the threat of litigation. What they

[52:55] don't tell you is how many manufacturers

[52:57] settle for outrageous sums because of

[52:59] the fear of punitive damages.

[53:01] >> figures are there.

[53:02] >> the total of $4 billion.

[53:03] This this is from the National

[53:04] Association of Insurance Commissioners

[53:06] who did a calculation of the total cost

[53:08] the total cost of attorneys' fees and

[53:10] compensation in the liabilities in the

[53:12] product liability system.

[53:13] >> Okay, in the little time we have left,

[53:14] if the President the President has said

[53:16] he will veto this bill, does it mean

[53:17] it's dead?

[53:20] Well,

[53:21] it may mean it's dead for this Congress.

[53:23] Uh we certainly uh having fought for

[53:24] this for close to 20 years, uh we'll

[53:26] come back next year if we have to.

[53:29] Uh we still hope the President will

[53:30] change his mind. I realize that's an

[53:32] uphill fight, so it may well be dead. It

[53:34] should be dead and we applaud the

[53:36] President for doing this. These guys

[53:38] have spent hundreds of millions of

[53:39] dollars pushing a bill that in any other

[53:42] uh situation would have died a natural

[53:44] death because it's not needed, not

[53:45] wanted, and it will harm consumers. But

[53:47] because they have an endless supply of

[53:49] cash to put behind this and pay their

[53:51] lobbyists and and give uh campaign

[53:53] contributions, they just keep pushing

[53:55] the same bill and the members keep

[53:57] pushing it because, you know, the the

[53:59] cash rolls in and they keep doing it.

[54:00] Trial lawyers are the biggest campaign

[54:02] contributors. And not compared to the

[54:04] business guys. time we have. Thank you

[54:05] both very much.

[54:15] Again, the major stories [music] of this

[54:16] Monday, around-the-clock negotiations

[54:18] failed to end the strike against General

[54:20] Motors brake plants in Dayton, Ohio.

[54:22] 142,000 GM workers have been idle. John

[54:25] Salvi was found guilty of murdering two

[54:27] women in a 1994 shooting at two Boston

[54:30] area abortion clinics. He was sentenced

[54:33] to life in prison without parole. And

[54:35] Chinese ships and planes held more

[54:37] military exercises southwest of Taiwan.

[54:39] They are expected to continue through

[54:41] Taiwan's presidential election on

[54:43] Saturday. And we'll see you tomorrow

[54:45] night with part two of our look at

[54:47] economic security and insecurity, among

[54:49] other things. I'm Jim Lehrer. Thank you

[54:51] and good night.

[54:55] Major funding for the NewsHour with Jim

[54:57] Lehrer [music] has been provided by the

[54:58] Archer Daniels Midland Company, ADM,

[55:01] supermarket to the world.

[55:05] And by New York Life. Yet another

[55:08] example of New York Life's wise

[55:10] investment philosophy.

[55:14] And by the Corporation for Public

[55:16] Broadcasting and by the annual financial

[55:18] support from viewers like you.

[55:41] >> [music]

[55:52] [music]

[56:21] >> Video cassettes of the NewsHour with Jim

[56:23] Lehrer are available from PBS video.

[56:26] Call 1-800-328-PBS1.

[56:34] >> [music]

[56:34] >> This is PBS.

[56:45] Funding for the NewsHour has been

[56:46] provided by Davis Wright Tremaine, an

[56:48] international law firm serving

[56:50] individuals and businesses with 11

[56:52] offices along the West Coast,

[56:53] Washington, D.C., and Shanghai, China.

[56:56] And by Portland Nursery with locations

[56:58] at 50th and Stark and 90th and Division

[57:00] where customer satisfaction comes before

[57:03] all else.

[57:12] >> [music]

[57:18] >> I'm singing

[57:20] in the rain, just singing in the rain.

[57:25] It's one of Hollywood's most Sorry.