Commerce Dept. CHIPS Act Contract Falls Short of Biden-Harris Administration's Standards

Today’s announcement of the CHIPS Act-funded contract the U.S. Department of Commerce has signed with Polar Semiconductor falls short of the standards set by the Biden-Harris Administration’s Executive Order on Investing in America and American Workers and Good Jobs Principles. In particular, the announcement and information on the CHIPS for America website contain no details about enforceable labor and environmental standards or public reporting requirements.

“CHIPS and Science Act funds could be an important part of the Biden-Harris Administration’s investment in creating good, sustainable manufacturing jobs that revitalize our communities, but the final contract terms reported do not appear to reflect those priorities,” said Carl Kennebrew, President of IUE-CWA, the industrial division of the Communications Workers of America. “We know that the semiconductor industry has a well-documented history of low pay for production workers, lax standards for exposure to toxic chemicals, and union busting. Addressing those issues requires transparency and public reporting on enforceable commitments, which are not noted in the public description of this contract.”

This potential lack of public transparency is of particular concern when it comes to worker safety. OSHA standards for toxic chemical exposure are outdated and do not cover many of the hazards present in semiconductor manufacturing.

While the contract with Polar falls short, upcoming awards to Intel, Micron, Samsung and other large industry players offer an opportunity to address these issues.

In order to ensure that the manufacturing facilities created through the CHIPS Act have a positive impact on the communities where they are situated, these contracts must:

• Set specific requirements for job creation and retention, wages, training, and safety with robust public reporting on those measures to ensure that these funds create the good jobs that are intended.
• Be enforced through strong non-compliance language and clawback provisions should companies violate federal law or fall short on honoring their commitments.
• Require that production workers have a free and fair opportunity to join a union. Union membership gives workers a seat at the table to set high standards for these facilities and provides an additional layer of transparency into how these standards are being implemented on the factory floor.

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