FRONTLINES - Solidarity - October 1999

Steelworkers hope fund can save good union jobs

People with money usually have only one reason for investing money to make more money. Fortunately, there are some folks around who think investments can do well financially while also doing good socially, like saving good-paying, union jobs, and preserving communities.

The United Steelworkers of America (USWA), the UAW's unification partner, has played a major role in creating the Heartland Labor Capital Investment Fund to save good union jobs.

USWA secretary-treasurer Leo Gerard criticizes traditional Wall Street investment strategies that result in thriving .corporations and dying cities. 'To take workers' capital and move it to Asia to exploit those workers at the expense of American workers is wrong" he says. "Why can't 'labor capital' be invested in American cities?" asks Gerard.

The Heartland Project expects to begin making investments next year in private companies with, good labor records.

The Heartland Fund is patterned after Quebec's Solidarity Fund which has saved 72,000. jobs. since 1983. Initiated by,, the Quebec Labor Federation in response to a rash of plant closings, the fund was established through legislative action by the provincial government. Seed money of $20 million came from the provincial and Canadian federal governments.

Today, the fund has $3 billion in assets and has provided venture capital to 1,200 small and mid-sized companies in Quebec. Proving that investors can "do well by doing good" the, fund has produced returns averaging seven percent to its shareholders.