[Originally published in the OTHER paper, Eugene, Oregon in August, 1995.]
Citizens group fights multinational corporation in Eugene by Wanda BallentineIn late May, 1995, the Eugene, Oregon Register-Guard announced with much fanfare that Hyundai Electronics America would build a $1.3 billion semiconductor plant in the city, promising jobs and prosperity. However, a $32 million price tag in tax abatements and other incentives was attached. The public had been given no prior information about this giveaway, much less a voice in the negotiations. It was simply informed it was a "done deal" due to break ground July 15.
In 1994 Sony had settled in next-door Springfield for an $11 million incentive "done-deal" package, stipulating that if "even a whisper" about negotiations got out, they'd pick up their marbles and find another game. A huge, foreign, multi-national company determined the spending of $11 million taxpayer dollars -- and it was happening again.
Well, U.S. companies have been doing worse in other countries ever since the ink dried on the Constitution. But it shouldn't happen anywhere. And it's not a matter of the U.S. vs. other countries; it's a matter of the "captains of industry" of all countries against the rest of us.
This time the community took action. One outraged resident put out a call, and about 30 people showed up. And they kept coming -- twice a week for most of the summer -- in growing numbers. There are currently 560 names on their mailing list, and about 40 show up consistently at weekly meetings.
The issue was the lack of accountability from public officials, and the group took the name, Citizens for Public Accountability (CPA). As the group learned about the the environmental and health threats posed by the semiconductor industry and the poor reputation of the Hyundai conglomerate, the Hyundai project itself became the focal point of accountability issues. Computers are here to stay, and international pressure must come to bear to demand they move to zero emissions and improve their labor practices. In Eugene, the plant is being located in our wetlands; an industry with this kind of environmental impact does not belong in wetlands!
CPA demanded a public hearing. The City refused, saying it had no authority; the plan had been drawn up by the Oregon Economics Development Dept. (OEDD) under the state's Enterprise Zone plan. CPA announced it would hold its own public forum. The next day the League of Women Voters announced, evidently at the behest of the Mayor, that it would host a forum. Of the public officials invited to participate in CPA's panel, only a minor player from the Planning Dept. accepted. Dr. Paul Engelking, UO chemistry professor and former consultant to the semiconductor industry and Dr. Mary O'Brien, staff scientist for the Environmental Research Inst. (Rachel's Environment & Health Weekly) spoke on the serious health and environmental threats posed by semiconductors; Sam Dominy from the Labor Council, brought up concerns about employment practices; County Commissioner Jerry Rust and former U.S. Congressman Jim Weaver, spoke about government concerns. The 300-capacity hall overflowed; many questions and concerns were raised.
Another overflow crowd attended the LWV forum, where an all-male panel of 13 city, state and Hyundai employees required to promote the project, held forth. Questions regarding pollution control, health concerns and employment practices were answered evasively or not at all.
In September, a fact-finding group of CPA members, a City Councilor, a County Commissioner and various city staff members visited Silicon Valley. Staff praised what they saw; the others found much to be concerned about. In November, CPA brought in labor and activist leaders from Silicon Valley and Portland for a community forum. The Register-Guard ignored the meeting.
Aided by three concerned City Councilors, CPA hammered away at the threats posed to the wetlands and the lack of sufficiently stringent environmental protection laws. It demanded answers regarding community benefits from the $32 million abatements. It asked what chemicals and manufacturing processes, handling and disposal procedures would be used. It wanted details on employment practices and wages. These questions were sent to City staff for response at a public hearing. Many are still unanswered. "Proprietary trade secrets" take precedence over human and environmental health. Hyundai has never revealed its wage scale -- it has yet to complete (reveal?) an industry wage survey begun six months ago.
The plant proposed to use 30 megawatts of power (10% of Eugene's current usage), 2.5 million gallons of water a day (7% current usage -- enough for 7500 families), increasing to 110 MW, and 9 million gallons at the end of Phase III (about equal to the demands of a town of 40,000). The Memo of Understanding signed with Hyundai by the director of the Eugene Water and Electricity Board (EWEB) was never put before the board, though Hyundai will be its biggest user, necessitating system expansion. Citizens are exerting pressure to ensure Hyundai is not subsidized by the ratepayers, but the results aren't in yet.
Investigative reporter Alan Pittman of the Eugene Weekly obtained state and city documents relating to Hyundai via the FOIA act. He found the "effort to lure [Hyundai]" with promises of cheap electricity, cheap water, and cheap non-union labor" was a "closely guarded secret" known as "Project Kwik." OEDD guaranteed subsidies and "fast tracking," helped negotiate the property purchase and offered to pay a tax accountant to calculate Hyundai's state taxes. Hyundai wanted no leaks to the public, and when EWEB sprung one, the agency sought consultation on putting a "green spin" on the project.
Eugene's organization chart shows the people at the top, followed by the City Council, then the City Manager, but City Manager Mike Gleason (who has since resigned) ran the Hyundai show. Not only were citizens not informed, City Councilors who would have opposed the project were kept in the dark.
While city staffers "did nothing illegal," according to the Weekly, they spent an enormously disproportionate amount of time working for Hyundai -- not for the public interest. Considerable time and money went into managing media coverage and the opposition, lobbying the Corps and the Governor. They finally hired ex-Governor Neil Goldschmidt, a powerful pro-business lobbyist.
In August, CPA demanded a public hearing regarding Hyundai's application to the Army Corps of Engineers, the Oregon Dept. of Environmental Quality and the Division of State Lands for its permit to build. The public response prolonged the hearing into a second day. More spoke against the plant than for, their testimonies generally well-researched and covering a wide variety of concerns. The "pros" repeated the same mantra over and over regarding economic benefits and the need for jobs.
In fact, Eugene's unemployment rate is 4.5, but there is a growing number of working homeless because of the lack of low-income housing, a situation Hyundai can only exacerbate as outsiders are attracted to the predominantly low-pay jobs. The industry is known to be cyclical and volatile; it is anti-union and has a history of poor labor practices. The majority of jobs do not pay a living wage and are mind-numbing and repetitive. Beyond the industry's poor reputation, the Hyundai corporation has an infamous history of environmental and labor transgressions, all downplayed in the mainstream media.
CPA proposed a community covenant with Hyundai, requiring it to:
§ inform the community of toxic chemicals and metals released into the workplace and the community;
§ use the most worker- and community-protective technologies within the industry;
§ fund an independent community monitoring process to report on Hyundai's toxics release reporting and toxics use reduction efforts;
§ provide secure family wages, benefits, and whistleblower protections for workers;
§ if Hyundai leaves within six years, it must pay back the value of the property tax abatements received.
Hyundai refused. CPA asked the City Council to negotiate a similar agreement. The Council vetoed it 5-3, but agreed to form an "Environmental and Economic" committee made up of two "pro" and two "con" councilors to review the City's protective laws and make appropriate recommendations.
The committee did an excellent job and came up with 40 recommendations. These were rejected by the Council, including the two "cons" on the committee, but referred to staff for determination as to which might be 'easily implemented' and not pose threats to existing businesses. They are now under reconsideration.
In December, the three agencies released their decision. Despite the clear mandate of the Clean Water Act, which says "thou shalt not build on wetlands unless there is clearly no alternative," Hyundai was granted a permit to begin construction. Phase III was denied, however, which does reduce the amount of wetlands impacted from 34 acres to 10. And, in violation of the National Environmental Protection Act, no environmental impact study was required.
CPA, Friends of Eugene, a land-use planning organization, the West Eugene Wetlands Friends and two Portland environmental groups, having been engaged in heavy-duty fundraising for some time, immediately filed several appeals for a stay. So far two have been denied, and we await decision on a federal appeal. This was remanded from Portland to Eugene and Judge Michael Hogan, an environmental version of the hanging judge. Hogan heard the case on January 26. If he refuses the stay, which is likely, CPA will appeal.
In the meantime, it's been raining in Oregon -- a lot -- and the wetlands are -- wet. Hyundai was warned that the area floods annually, but project director Dong Soo Shyn, was obviously not prepared for what he saw. Hyundai started excavation in December and now has a couple of swimming pools. The city, which has always ignored this natural occurrence, felt obliged to spend tax dollars to send crews to pump water into trucks to protect Hyundai but continues to deny that covering the area with concrete will produce worse flooding.
Immediately after breaking ground, Hyundai also applied for -- and received -- a variance to the noise abatement law allowing them to work 24 hours a day. This has been appealed by CPA members. Once again, citizens presented a surprisingly wide range of arguments against the variance. The City maintains that Hyundai will suffer 'undue hardship' if construction is prolonged, and that 'economic benefit' to the community outweighs any possible disturbances. Decision on this appeal is due in the next week.
Meanwhile, papers other than the Register-Guard have been reporting that the predicted downward cycle resulting from overbuilding in the chip industry has begun.
©Wanda Ballentine, 1995