The Institute for Policy Studies is set to release a crucial report titled “Leveraging the CHIPS Program to Create Good Jobs for All Semiconductor Workers” on August 22. This report sheds light on the realities faced by workers in the semiconductor industry, including issues like low wages, exposure to toxic chemicals, demanding work schedules, and limited opportunities for career advancement. With up to $175 billion allocated in subsidies and tax credits for the semiconductor industry and 16 major manufacturing contracts nearing final negotiations, the report emphasizes the need for the Biden-Harris administration to ensure these investments truly benefit workers, not just corporate executives.
Chris Mills Rodrigo, the report’s lead author and Managing Editor of Inequality.org at the Institute for Policy Studies, notes that the CHIPS contracts provide a unique opportunity to fulfill the administration’s promise of creating good jobs in the semiconductor sector. However, the research conducted reveals a gap between this promise and the current reality, with many jobs in the industry falling short of being the high-paying, high-quality positions that communities expect. The report advocates for strict regulations and strong workforce commitments in the final contracts to ensure that the CHIPS subsidies improve working conditions and wages in the semiconductor industry rather than merely boosting profits for top executives.
The report’s release comes at a pivotal moment as the semiconductor industry undergoes significant expansion, fueled by substantial government investment. The CHIPS and Science Act of 2022, a cornerstone of this expansion, was designed to bolster U.S. leadership in semiconductor manufacturing and innovation while creating high-quality jobs. However, the report warns that without proper oversight and enforcement, these goals may not be fully realized.
The report calls for several “common-sense” measures to ensure that the benefits of the CHIPS program are widely shared among workers. These measures include:
1. Stronger Worker Protections:
The report advocates for the inclusion of robust labor standards in the CHIPS contracts. These standards should address issues such as wage levels, job security, health and safety protections, and the right to organize and bargain collectively. By implementing these protections, the administration can ensure that the new jobs created through the CHIPS program are indeed good jobs that provide economic security and fair treatment for workers.
2. Transparency and Accountability:
The report emphasizes the need for transparency in how CHIPS funds are allocated and spent. This includes making information about contracts, subsidies, and tax credits publicly available, as well as ensuring that companies receiving these funds are held accountable for meeting their commitments to workers and communities.
3. Incentives for Workforce Development:
To address the skills gap in the semiconductor industry, the report suggests offering incentives for companies to invest in workforce development programs. These programs should focus on providing training and education opportunities for workers, particularly those from underserved communities, to ensure that they have the skills needed to succeed in the industry.
4. Environmental and Health Safeguards:
Given the semiconductor industry’s use of hazardous materials, the report calls for stronger environmental and health protections for workers. This includes stricter regulations on the use of toxic chemicals, as well as monitoring and enforcement mechanisms to ensure that companies comply with these regulations.
5. Equity and Inclusion:
The report stresses the importance of promoting equity and inclusion in the semiconductor industry. This includes efforts to increase the representation of women, people of color, and other underrepresented groups in the workforce, as well as ensuring that these groups have access to good jobs and career advancement opportunities.
By implementing these measures, the report argues, the Biden-Harris administration can help ensure that the CHIPS program delivers on its promise of creating high-quality jobs in the semiconductor industry while also addressing the industry’s existing challenges. The report serves as a reminder that public investments must be carefully managed to ensure that they benefit not just corporations but also the workers and communities that are critical to the industry’s success.
In a broader context, the report’s findings reflect ongoing debates about the role of government in shaping economic outcomes. The CHIPS program represents a significant government intervention in the semiconductor industry, with the goal of securing U.S. leadership in this critical sector. However, as the report highlights, the success of such interventions depends on the extent to which they address the needs of workers and communities, rather than simply boosting corporate profits.
The report also touches on the broader implications of the CHIPS program for the U.S. economy. The semiconductor industry is a key driver of technological innovation and economic growth, and the success of the CHIPS program could have far-reaching effects on the U.S. economy. However, the report warns that if the program fails to deliver on its promise of creating good jobs, it could exacerbate existing inequalities and undermine public trust in government.
Overall, the report provides a comprehensive analysis of the challenges and opportunities associated with the CHIPS program. It offers a clear set of recommendations for how the program can be used to create high-quality jobs in the semiconductor industry while also addressing broader issues such as equity, inclusion, and environmental sustainability. As the report concludes, the CHIPS program represents a once-in-a-generation opportunity to reshape the semiconductor industry and ensure that it serves the interests of workers, communities, and the broader U.S. economy. However, realizing this potential will require strong leadership, careful oversight, and a commitment to putting the needs of workers and communities first.
