1 00:00:10,470 --> 00:00:11,970 DEVON NEARY: My name is Devon Neary, 2 00:00:11,970 --> 00:00:15,304 I'm the Community Outreach Manager here at the CMA. 3 00:00:15,304 --> 00:00:17,220 As you all know our members across the country 4 00:00:17,220 --> 00:00:19,964 face constant opposition from environmental groups. 5 00:00:19,964 --> 00:00:21,630 I'm here today to propose some solutions 6 00:00:21,630 --> 00:00:24,007 for working with these groups [AUDIO OUT] against them. 7 00:00:24,007 --> 00:00:26,340 Our most recent conflict involved an environmental group 8 00:00:26,340 --> 00:00:29,520 trying to block the expansion of our southwest computer chip 9 00:00:29,520 --> 00:00:32,070 factory on the grounds that pollution is causing 10 00:00:32,070 --> 00:00:34,460 a spike in local cancer rates. 11 00:00:34,460 --> 00:00:37,110 So what should our goal be in designing a working plan 12 00:00:37,110 --> 00:00:38,580 with this environmental group? 13 00:00:38,580 --> 00:00:40,990 I propose a strategy that is different from how the CMA 14 00:00:40,990 --> 00:00:42,840 usually conducts business. 15 00:00:42,840 --> 00:00:45,660 I propose we sit down in remediated negotiations 16 00:00:45,660 --> 00:00:47,670 with the environmental groups and explain 17 00:00:47,670 --> 00:00:49,440 our side of the issue, allow them 18 00:00:49,440 --> 00:00:52,140 to explain their side of the issue, 19 00:00:52,140 --> 00:00:53,830 and find a consensus for moving forward 20 00:00:53,830 --> 00:00:55,320 that enables both sides to achieve 21 00:00:55,320 --> 00:00:58,500 their long-term aims given the constraints of reality. 22 00:00:58,500 --> 00:01:01,020 We want to open up a space to collaborate and brainstorm 23 00:01:01,020 --> 00:01:03,270 nonbinding options as a means of moving 24 00:01:03,270 --> 00:01:05,640 towards a binding agreement. 25 00:01:05,640 --> 00:01:07,347 Why should this be our goal? 26 00:01:07,347 --> 00:01:09,180 Environmental groups pressure us and attempt 27 00:01:09,180 --> 00:01:11,430 to block us at our sites throughout the country. 28 00:01:11,430 --> 00:01:13,994 These disputes have not improved over the last few decades, 29 00:01:13,994 --> 00:01:16,410 and it's time for a new approach to make sure our projects 30 00:01:16,410 --> 00:01:19,380 progress according to time and financial constraints. 31 00:01:19,380 --> 00:01:21,270 My research on this issue supports the idea 32 00:01:21,270 --> 00:01:23,250 that a consensus-building approach can improve 33 00:01:23,250 --> 00:01:25,440 outcomes for all parties. 34 00:01:25,440 --> 00:01:26,880 Just for a little bit of context, 35 00:01:26,880 --> 00:01:29,940 in reality, our partners in the environmental organization 36 00:01:29,940 --> 00:01:32,490 do not have a lot of legal ground to stand on. 37 00:01:32,490 --> 00:01:36,030 Proving the cause of a specific cancer in a specific individual 38 00:01:36,030 --> 00:01:38,100 and tying it to a specific chemical that came out 39 00:01:38,100 --> 00:01:40,610 of our chip plant on a specific day 40 00:01:40,610 --> 00:01:43,110 is very challenging and costly in a courtroom. 41 00:01:43,110 --> 00:01:44,880 We can gently remind environmentalists 42 00:01:44,880 --> 00:01:47,500 that court is expensive, adversarial, and often drawn 43 00:01:47,500 --> 00:01:48,000 out. 44 00:01:48,000 --> 00:01:50,250 Ultimately, our funding and legal capabilities 45 00:01:50,250 --> 00:01:51,510 will defeat theirs. 46 00:01:51,510 --> 00:01:53,544 In addition, in times of economic duress 47 00:01:53,544 --> 00:01:54,960 and uncertainty, local authorities 48 00:01:54,960 --> 00:01:56,840 are going to make way for our great industry 49 00:01:56,840 --> 00:01:58,870 to create jobs and capital. 50 00:01:58,870 --> 00:02:00,600 So in some sense, there's no need for us 51 00:02:00,600 --> 00:02:04,440 to engage with the environmentalists. 52 00:02:04,440 --> 00:02:06,450 Without the negotiation, we'll probably 53 00:02:06,450 --> 00:02:08,015 still get our expansion. 54 00:02:08,015 --> 00:02:09,389 However, what I want to point out 55 00:02:09,389 --> 00:02:12,270 is that we can do better than that through the negotiation. 56 00:02:12,270 --> 00:02:14,617 We can prove our relationships with environmentalists, 57 00:02:14,617 --> 00:02:16,950 and we can make it easier and less costly to do business 58 00:02:16,950 --> 00:02:18,210 in the future. 59 00:02:18,210 --> 00:02:21,100 I know many of you probably have some hesitations about this. 60 00:02:21,100 --> 00:02:23,140 Perhaps you feel a fear of the unknown, 61 00:02:23,140 --> 00:02:25,440 a fear that the process will fail 62 00:02:25,440 --> 00:02:28,080 or a fear that the negotiation will be slow and costly. 63 00:02:28,080 --> 00:02:31,350 But remember we're investing for long-term gains 64 00:02:31,350 --> 00:02:34,470 in our relationships with surrounding communities. 65 00:02:34,470 --> 00:02:37,120 I understand this is atypical for our powerful industry 66 00:02:37,120 --> 00:02:38,700 and there will be challenges. 67 00:02:38,700 --> 00:02:41,250 As the views of the CMA and the views of the environmental 68 00:02:41,250 --> 00:02:42,896 groups differ radically. 69 00:02:42,896 --> 00:02:46,290 The environmentalists may not be ready or willing to negotiate. 70 00:02:46,290 --> 00:02:48,510 They may be intent on filing a lawsuit, 71 00:02:48,510 --> 00:02:50,190 or they could draw out the negotiations 72 00:02:50,190 --> 00:02:51,210 in a disruptive manner. 73 00:02:55,389 --> 00:02:56,805 Their ultimate goal would probably 74 00:02:56,805 --> 00:02:59,910 be to eliminate our plant, but this is not a realistic demand. 75 00:02:59,910 --> 00:03:02,010 Our plant is already there and operating well, 76 00:03:02,010 --> 00:03:03,960 so eliminating the potential carcinogens 77 00:03:03,960 --> 00:03:05,740 is not a feasible option for them. 78 00:03:05,740 --> 00:03:08,910 So what is the next best option for the community? 79 00:03:08,910 --> 00:03:10,680 Our strategy is to think in terms 80 00:03:10,680 --> 00:03:13,320 of what we can offer them to appease some of their concerns 81 00:03:13,320 --> 00:03:15,572 without giving up anything precious to us. 82 00:03:15,572 --> 00:03:17,530 Do they need health clinics in their community? 83 00:03:17,530 --> 00:03:20,400 Do they want a community buyout so they can relocate? 84 00:03:20,400 --> 00:03:22,470 Would they like a new nature preserve or funding 85 00:03:22,470 --> 00:03:23,580 for education? 86 00:03:23,580 --> 00:03:25,852 For our part our members have to decide away 87 00:03:25,852 --> 00:03:27,810 from the table, how much we are willing to give 88 00:03:27,810 --> 00:03:30,030 to smooth out these relationships and leverage 89 00:03:30,030 --> 00:03:31,935 these concessions in negotiations. 90 00:03:31,935 --> 00:03:33,810 We need to find out what people on both sides 91 00:03:33,810 --> 00:03:36,060 are really willing to live with. 92 00:03:36,060 --> 00:03:38,460 We can begin by addressing their environmental concerns, 93 00:03:38,460 --> 00:03:40,320 talking about issues of leaks, accidents, 94 00:03:40,320 --> 00:03:42,660 the increased rates of cancer that they're observing. 95 00:03:42,660 --> 00:03:44,160 How can we prove to them that we are 96 00:03:44,160 --> 00:03:46,576 in compliance with regulations and protecting the abutting 97 00:03:46,576 --> 00:03:47,640 communities? 98 00:03:47,640 --> 00:03:50,100 We can also leverage what we do well for the community. 99 00:03:50,100 --> 00:03:52,950 We create jobs, we spur economic development, 100 00:03:52,950 --> 00:03:56,070 we make philanthropic donations, provide job training. 101 00:03:56,070 --> 00:04:00,180 My job is to get people excited about chemical manufacturing 102 00:04:00,180 --> 00:04:02,670 and all the wonderful things we do for the country 103 00:04:02,670 --> 00:04:03,670 and for the world. 104 00:04:03,670 --> 00:04:05,870 The chips manufacturing plant in question, 105 00:04:05,870 --> 00:04:07,990 while maybe causing some pollution, 106 00:04:07,990 --> 00:04:09,780 is manufacturing computer chips used 107 00:04:09,780 --> 00:04:11,470 in a wide range of industries including 108 00:04:11,470 --> 00:04:14,376 defense, medical research, education, and so on. 109 00:04:14,376 --> 00:04:16,709 We believe that if residents realize the contribution we 110 00:04:16,709 --> 00:04:18,720 have in their community and for the country, 111 00:04:18,720 --> 00:04:21,190 they'll be more amenable to negotiating with us. 112 00:04:21,190 --> 00:04:23,084 So you want to focus on two principles. 113 00:04:23,084 --> 00:04:25,500 You want to focus on maintaining relationships throughout. 114 00:04:25,500 --> 00:04:27,840 And We want to focus on mutual gains. 115 00:04:27,840 --> 00:04:31,170 So we'll follow a process based on a research 116 00:04:31,170 --> 00:04:32,940 consensus-building approach. 117 00:04:32,940 --> 00:04:35,460 When we are ready to negotiate and the environmentalist 118 00:04:35,460 --> 00:04:37,200 express that they are ready, first we 119 00:04:37,200 --> 00:04:39,270 will convene and assign roles. 120 00:04:39,270 --> 00:04:42,000 For example, we need to identify a mediator. 121 00:04:42,000 --> 00:04:44,675 The mediator will schedule and facilitate the meetings, 122 00:04:44,675 --> 00:04:48,540 consult privately with groups and push us to build consensus. 123 00:04:48,540 --> 00:04:50,640 We also want to focus on group problem solving. 124 00:04:50,640 --> 00:04:53,050 How can we create value as a group? 125 00:04:53,050 --> 00:04:55,440 By brainstorming different options together 126 00:04:55,440 --> 00:04:57,810 based on our interests and being creative, 127 00:04:57,810 --> 00:05:00,330 we can present alternative designs. 128 00:05:00,330 --> 00:05:02,670 We can expand the means of dealing with externalities 129 00:05:02,670 --> 00:05:04,830 and try to create different packages of benefits 130 00:05:04,830 --> 00:05:07,070 we can offer the community. 131 00:05:07,070 --> 00:05:09,330 Once we have created value, we can talk about ways 132 00:05:09,330 --> 00:05:12,060 to distribute value to implement these goals 133 00:05:12,060 --> 00:05:15,900 and to hold parties accountable for their commitments. 134 00:05:15,900 --> 00:05:18,870 So just to review the benefits of engaging 135 00:05:18,870 --> 00:05:21,750 in a successful negotiation for our company. 136 00:05:21,750 --> 00:05:24,710 It's an opportunity to educate the community about our work 137 00:05:24,710 --> 00:05:27,810 and our constraints to gain some flexibility in when 138 00:05:27,810 --> 00:05:30,235 and how requirements are met and to smooth out 139 00:05:30,235 --> 00:05:31,610 these longstanding and disruptive 140 00:05:31,610 --> 00:05:33,750 and conflicts with environmentalists. 141 00:05:33,750 --> 00:05:35,250 With the environmentalists, they can 142 00:05:35,250 --> 00:05:37,860 achieve better environmental gains, reap added value, 143 00:05:37,860 --> 00:05:40,860 and enforce stronger business practices in their community 144 00:05:40,860 --> 00:05:42,390 all at a lower cost. 145 00:05:42,390 --> 00:05:44,240 Thank you.