Trump Disbands Manufacturing And Business Advisory Councils After CEOs Resign En Masse
Updates to this post appear at the bottom of the page.
President Donald Trump is continuing to battle political fallout from his tepid response to the white supremacist violence that left three dead and dozens wounded in Charlottesville on Saturday. (As you'll recall, Trump attributed the violence to "many sides" on Saturday, then on Monday said, "Racism is evil," and finally tweeted that the media's failure to be placated by his belated condemnation of racism was a sign that journalists are the "truly bad people.") The controversy is playing out in, of all places, a White House advisory group called the American manufacturing council. What is this manufacturing council, and why are its members taking a stand? Here's what we know.
The Council Was Created In January To Advise Trump On His Efforts To Create Manufacturing Jobs
The White House first announced the creation of the manufacturing council, then called the "Manufacturing Jobs Initiative," in January:
The President will be meeting with some of the world's most successful and creative business leaders to share their experiences and gain their insights. President Trump plans to continually seek information and perspectives from a diverse range of business leaders, including those listed below and others, on how best to promote job growth and get Americans back to work again.
According to The New York Times, "this council is filled with the heads of defense contractors, automakers, health care and other major industrial companies." Trump convened manufacturing leaders in the White House in January and February.
Merck's CEO Was The First Council Member To Pull Out Following Trump's Response To Charlottesville
Merck CEO Kenneth C. Frazier got the ball rolling by announcing his resignation from the council in a clear, forceful statement on Monday morning.
Frazier has a history of taking political stands that could potentially alienate certain shareholders.
Frazier, chief executive of Merck since 2011, has not been shy about wading into sensitive issues. As a corporate lawyer, he took on a death-row appeal that led him to write about the injustices within the system for capital punishment. (James Willie "Bo" Cochran's conviction was ultimately overturned). While acting as CEO of Merck, he led a committee investigating child abuse by former Penn State football coach Jerry Sandusky. Under his leadership, Merck announced that its charitable foundation would suspend donations to the Boy Scouts of America over its anti-gay stance at the time. The Scouts have since changed their policy.
Trump Responded By Accusing Merck Of 'Taking Jobs Out Of The US'
Trump responded to Frazier's announcement with a pair of insulting tweets about Frazier and Merck.
The CEOs Of Under Armour And Intel Followed Frazier's Lead On Monday Night
On Monday night, Under Armour released a statement attributed to CEO Kevin Plank announcing his decision to "step down from the council" and affirming "the power of sport."
Even later on Monday, Intel CEO Brian Krzanich announced his resignation from the manufacturing council in a blog post on Intel's policy blog.
Earlier today, I tendered my resignation from the American Manufacturing Council. I resigned to call attention to the serious harm our divided political climate is causing to critical issues, including the serious need to address the decline of American manufacturing…
I have already made clear my abhorrence at the recent hate-spawned violence in Charlottesville, and earlier today I called on all leaders to condemn the white supremacists and their ilk who marched and committed violence. I resigned because I want to make progress, while many in Washington seem more concerned with attacking anyone who disagrees with them. We should honor — not attack — those who have stood up for equality and other cherished American values. I hope this will change, and I remain willing to serve when it does.
Trump Has Continued To Insult The CEOs Who Have Left The Council
Trump responded this morning with a tweet accusing the CEOs who have left the council of being "grandstanders."
A Fourth Council Member Announced His Resignation On Tuesday Morning
Not long after Trump's latest insulting tweet, Scott Paul, the president of a trade organization called the Alliance for American Manufacturing, announced that he too was resigning from the manufacturing council.
Other CEOs Are Speaking Out Against Trump — But Not Necessarily Quitting His Council
And other CEOs who are not on the manufacturing council, like Walmart's Doug McMillan, have also spoken out against Trump's half-hearted, belated condemnation of racist violence. McMillan sent an email to his staff on Monday, and the memo was later published on Walmart's corporate blog.
As we watched the events and the response from President Trump over the weekend, we too felt that he missed a critical opportunity to help bring our country together by unequivocally rejecting the appalling actions of white supremacists. His remarks today were a step in the right direction and we need that clarity and consistency in the future.
However, McMillan says he will continue to serve on a different advisory council to the president.
Despite Mr. McMillon's criticism, a Walmart spokesman said he would continue to serve on a presidential advisory council on economic development. Mr. McMillion, in his note, said he believed that the company "should stay engaged to try to influence decisions in a positive way and help bring people together."
Activists Are Pressuring The Remaining Manufacturing Council Members To Abandon Trump
There are still 20 members on Trump's manufacturing council, but perhaps not for long. The activist group Color Of Change has created a petition calling on CEOs to quit Trump's advisory councils, along with a social media campaign under the hashtag #QuitTheCouncil.
In this moment in our nation, we will not forgot those who remained silent and we will hold special contempt for those who used their access and power for profit. In the wake of Trump's tacit response to Charlottesville — a response that has been applauded on Stormfront — it is reprehensible that any CEO would continue to carry water for this administration.
So Far, CEOs' Response To The Public Pressure To Leave The Council Has Been Mixed
According to CNN, at least seven companies with representatives on the manufacturing council have said that they will remain on the council.
General Electric (GE) said the company has "no tolerance for hate, bigotry or racism." But it added that chairman Jeff Immelt would stay on the council because it was important for GE to "participate in the discussion on how to drive growth and productivity in the US."
Representatives for at least five other companies — Dow Chemical (DOW), Whirlpool (WHR), Campbell Soup (CPB), International Paper (IP) and Nucor (NUE) — voiced similar sentiments…
One other member, Dell, said there was "no change" in how it is "engaging with the Trump administration" on policy issues that affect the company.
But other members of the council claim to be reevaluating their membership in the wake of Trump's inadequate condemnation of white supremacism — such as Richard Trumka, the president of the AFL-CIO, who gave the following statement:
The AFL-CIO has unequivocally denounced the actions of bigoted domestic terrorists in Charlottesville and called on the president to do the same. We are aware of the decisions by other members of the President's Manufacturing Council, which has yet to hold any real meeting, and are assessing our role. While the AFL-CIO will remain a powerful voice for the freedoms of working people, there are real questions into the effectiveness of this council to deliver real policy that lifts working families.
[ABC News]
Some CEOs Are Reportedly Afraid Of Being Made Fun Of By Trump
According to a report published Monday, some CEOs are afraid to speak out against Trump.
Privately, many chief executives say they are fuming, outraged by the president. (This after many of them campaigned to get on Mr. Trump's committees.) But many are too scared to say anything publicly that could make them or their company a target of Mr. Trump's wrath…
When I asked one chief executive Monday morning why he had remained publicly silent, he told me: "Just look at what he did to Ken. I'm not sticking my head up." Which, of course, is the reason he said I could not quote him by name.
This Isn't The First Time Business Leaders Have Left White House Advisory Roles In Protest
The controversy over Trump's refusal to wholeheartedly condemn white supremacists is not the first incident to convince business leaders to cut ties with Trump.
Tesla and SpaceX CEO Elon Musk and Disney chief Robert Iger stepped down from their roles on White House advisory councils following Trump's decision to withdraw from the Paris climate agreement. Former Uber chief executive Travis Kalanick, too, said he would no longer participate in a White House economic council, following an uproar in February over Trump's travel ban.
Update, August 15, 6:30 PM: The President Of The AFL-CIO Has Left The Council
Hours after President Trump went of the rails during a press conference, defending the Unite The Right rally, the president of the AFL-CIO stepped down from the manufacturing council. In a statement, Richard Trumka said, "President Trump's remarks today repudiate his forced remarks yesterday about the KKK and neo-Nazis… We must resign on behalf of America's working people, who reject all notions of legitimacy of these bigoted groups."
Update, August 16, 1:00 PM: CEOs Of 3M And Campbell's Announce Resignation From Council
Inge Thulin, the CEO of 3M, became the sixth executive or president of a company or group to leave the manufacturing council. He issued a careful statement:
Sustainability, diversity and inclusion are my personal values and also fundamental to the 3M Vision. The past few months have provided me with an opportunity to reflect upon my commitment to these values.
I joined the Manufacturing Jobs Initiative in January to advocate for policies that align with our values and encourage even stronger investment and job growth – in order to make the United States stronger, healthier and more prosperous for all people. After careful consideration, I believe the initiative is no longer an effective vehicle for 3M to advance these goals. As a result, today I am resigning from the Manufacturing Advisory Council.
Shortly after, Campbell's CEO Denise Morrison issued a much stronger condemnation of Trump's words in a statement posted to the Campbell's company website.
Racism and murder are unequivocally reprehensible and are not morally equivalent to anything else that happened in Charlottesville. I believe the President should have been — and still needs to be — unambiguous on that point.
Following yesterday's remarks from the President, I cannot remain on the Manufacturing Jobs Initiative. I will continue to support all efforts to spur economic growth and advocate for the values that have always made America great.
Update, August 16, 1:30 PM: Trump Announces Dissolution Of The Council After Separate Business Council Disbands
Following the departure of seven business leaders from Trump's manufacturing council, a separate White House business advisory council of CEOs decided to disband and condemn Trump.
Members of President Donald Trump's Strategic and Policy Forum have agreed to disband the group, sources told CNBC, as corporate backlash mounts against the president…
"The thinking was it was important to do as a group," a member told CNBC. "As a panel, not as individuals because it would have more significant impact. It makes a central point that it's not going to go forward. It's done."
[CNBC]
Following the mass resignations, Trump announced on Twitter his decision to disband the manufacturing council and the business council. The tone of the tweet was remarkably more restrained than that of his previous tweets about departing CEOs.