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Illinoisans Call for Minimum Wage Increase

Monday, July 4th, 2011

kari-lydersenCHICAGO—Among various policies that former Illinois Gov. Rod Blagojevich has touted as proving he fought for the common man was a 2006 bill that raised the state minimum wage automatically each year through 2010. Several days after Blagojevich was convicted on 17 federal corruption charges, minimum wage workers in Illinois began July 1 without any increase in minimum wages for the first time in five years.

The state minimum wage currently stands at $8.25 ($7.75 for minors and people in the first 90 days with an employer) and $4.95 an hour for tipped employees. (Restaurant workers are calling for a higher federal minimum wage for tipped employees, as I blogged about last week.)

In Chicago, the state minimum wage is still several dollars below what is considered a living wage. At a press conference in Chicago Thursday, labor leaders, workers, pastors and business owners who are part of a coalition called Raise Illinois called to increase the state minimum wage to make up for de facto decreases in the minimum wage since it has failed to keep pace with the cost of living.

Though Illinois has one of the country’s highest state minimum wages, it is still significantly lower than what the minimum wage would be if the first Illinois minimum wage of $1.60 an hour in 1969 had been increased proportionate to the cost of living. Had the minimum kept pace with inflation, it would be above $10 an hour by now, according to the coalition. Increasing the state minimum wage to at least that level is the goal of a Senate bill the coalition is supporting.

In recent months, CaliforniaMassachusetts, Maine and Marylandlegislatures introduced bills to increase their state minimum wages.

Adam  Kader, director of the workers center for the group ARISE Chicago(and an occasional contributor to this website), noted that much projected job growth in this economy is in minimum wage jobs or jobs that pay just slightly above minimum wage, including in fast food restaurants, big box retail stores, warehouses, cleaning and maintenance and other low-skill service sectors.

“It’s not just young people, people working over the summer or part-time workers who earn minimum wage,” he said. “More and more new jobs are in the minimum wage bracket.”

An increase in the minimum wage also affects a significant tier of workers who earn one step above minimum wage, Kader notes, since many employers peg their wages to the minimum wage, promising to pay 25 cents or 50 cents above it. That is the case, for example, with a new Walmartplanned for Chicago’s South Side Pullman neighborhood.

The Chicago event also featured the groups Action Now and Women Employed, SEIU Healthcare Illinois and Indiana, homecare and other workers and interfaith leaders. The coalition’s website says:

At $8.25 an hour, or $16,500 a year, minimum wage workers cannot afford to provide for their families’ basic needs. In this recession, corporate profits and CEO pay are increasing dramatically, while ordinary working Americans are struggling to survive.

The Illinois legislature has been helpful to big businesses by providing workers compensation reform, which reduced costs for businesses, and the Governor offered tax subsidies to huge corporations like Motorola and Sears.

Unfortunately, Illinois elected officials have forgotten about working Americans, especially minimum wage workers who received a reduction in real wages this year.

A fact sheet from the Raise Illinois coalition says:

A raise in the minimum wage helps low-income households who immediately put the money back into the economy at the local grocery store, barber shop or gas station. The Economic Policy Institute estimated that the 2009 federal minimum wage increase from $6.55 to $7.25 an hour would generate $5.5 billion in new consumer spending. A robust minimum wage can help build a sustainable economic recovery– without increasing costs to taxpayers.

On June 7, the Center for American Progress hosted a panel of experts describing how a higher minimum wage should be expected to stimulate the economy, even during an economic crisis.

When Illinois’ 2006 minimum wage bill was passed, a press release from Blagojevich’s office touted the achievement.

Despite predictions from opponents of the minimum wage that its increase would harm the economy, since the Governor’s first minimum wage hike went into effect in January 2004, Illinois has added more than 152,000 new jobs, which is more than any state in the Midwest according to the Federal Bureau of Labor Statistics (BLS).

Illinois has led the nation in job growth twice this year (April and July), which has never happened before in recorded history, and has been named the third best state in the nation for attracting new and expanded corporate facilities by Site Selection Magazine.

Inc. Magazine recently named Gov. Blagojevich as the second best Governor in the nation for fiscal policy (Blagojevich was also named the top governor for health care policy). In addition, the unemployment rate has fallen from 6.7 percent in January 2003, when the fight for the higher minimum wage began, to 4.1 percent today, which is the state’s lowest level on record.

While the praise for the former governor now seems humorous, the economic impact of his actions on the state minimum wage are no less relevant today.

This article originally appeared on the Working In These Times blog on July 1, 2011. Reprinted with permission.

About the Author: Kari Lydersen is an In These Times contributing editor, is a Chicago-based journalist whose works has appeared in The New York Times, the Washington Post, the Chicago Reader and The Progressive, among other publications. Her most recent book is Revolt on Goose Island. In 2011, she was awarded a Studs Terkel Community Media Award for her work. She can be reached at kari.lydersen@gmail.com.

How a Raise in the Minimum Wage Could Benefit Both Workers and the National Economy

Tuesday, June 14th, 2011

Andy PictureOn June 7, 2011, the Center for American Progress hosted a panel discussion on research conducted on minimum wage increases, and the economic effects these increases caused. Participants included: David Madland (Center for American Progress Action Fund), Helen Neuborne (Ford Foundation), Heidi Shierholz (Economic Policy Institute), Celinda Lake (Lake Research Partners), Sylvia Allegretto (University of California, Berkeley), Michael Reich (University of California, Berkeley), and Paul Sonn (National Employment Law Project).

The most basic rationale behind raising the minimum wage is widely known: the current minimum wage is not a “living wage”, i.e. compensation that can truly allow an individual to meet regular monthly expenses. Data provided by the panel indicated that a woman with two children would need to work three minimum wage jobs in order to place herself in a stable position in most communities across the country. Over two-thirds of those polled on the issue of the minimum wage regularly state they favor an increase, so political action on this front would probably not be overwhelmingly unpopular. Yet the question remains: are there other reasons for raising the minimum wage besides its effect on livings standards and its widespread support?

Perhaps the most important point discussed by the panelists was that the minimum wage can be raised without destroying jobs. Conventional wisdom long held that raising the minimum wage would cause this effect, but recent economic research has tended to disprove this theory. Whether a minimum wage increase is studied at the national level or within a smaller unit (like an individual industry), these recent studies have shown that a minimum wage increase actually has no effect on the number of jobs in the marketplace.

A minimum wage increase would actually be economically beneficial since it would increase the spending power of consumers, which would result in increased aggregate demand. Furthermore, a higher minimum wage would strengthen job stability, decrease job turnover, and benefit the middle class. Job stability and decreased turnover are benefits that would be shared with employers, since they normally must expend additional company resources to train new hires when individuals rapidly cycle in and out of jobs. With less job turnover, employees can also become more experienced.

An increase in the minimum wage could also directly stimulate the economy, and be part of a larger national economic recovery. In a sense, a minimum wage increase involves shifting profits from corporations to workers, since without an increase in pay corporations would normally keep these funds. Research indicates that although allowing companies to keep this money would benefit the economy, the profits can do more economic good when they are transferred to the minimum wage workers. This is because corporations often don’t go out and spend this extra money in the marketplace. Minimum wage workers, however, need to spend what they earn in order to obtain basic necessities. So the extra money put in the pockets of minimum wage workers is actually immediately spent obtaining goods and services.

Finally, a minimum wage increase could be used in conjunction with the Earned Income Tax Credit to provide even greater support for the working class. Using only the EITC in isolation with no minimum wage increase might actually result in a decrease in wages: the EITC encourages individuals to seek employment, but with an increase in the amount of labor available, wages go down. Using both the EITC and a minimum wage increase together would actually increase the positive effects of both. This two-pronged approach also has the benefit of dividing the financial burden of paying for this support: with a minimum wage increase, the employers must face additional costs, and taxpayers cover the EITC. Using both methods results in a more equitable distribution of who pays for the assistance.

The Center for American Progress’s panel raised many interesting questions, and the research cited indicates that the minimum wage need not be seen as an economic burden, but a tool for national growth. With bipartisan support for an increase in the minimum wage already in place, perhaps federal and state governments will take action soon on this important issue.

About the Author: Andrew Laine is a law student and intern at Workplace Fairness.

Ohio Senate Republicans Attempt To Gut State Minimum Wage Law

Thursday, June 2nd, 2011

waldron_travis_bioOhio is one of 17 states that require workers to be paid above the minimum wage mandated by federal law. But Ohio Senate Republicans are working to limit the number of people eligible to earn that wage, attaching an amendment to an omnibus budget bill that would circumvent the law and prevent an untold number of workers from collecting the state-mandated minimum wage.

In 2006, Ohio voters approved an amendment to the state constitution setting the state’s minimum wage at $6.85 an hour with a built-in increase attached to inflation each year. The current minimum wage in Ohio increased to $7.40 an hour this year, $0.15 higher than the $7.25 an hour required by federal law.working-america

The amendment by state Senate Republicans would reduce the number of workers eligible for the state minimum wage, making only those covered by the looser federal law eligible to earn Ohio’s minimum wage:

(Image courtesy of Plunderbund)

The Legislative Service Commission, which evaluates legislation in Ohio, said the amendment “may result in fewer individuals subject to the minimum wage.”

As Plunderbund notes, Ohio Republicans, led by Gov. John Kasich (R), are already facing the remarkable unpopularity of Senate Bill 5, which rolls back collective bargaining rights for public employees, including police officers and firefighters. Now they have chosen to further their attacks on workers by targeting a law that was approved by voters in a referendum just five years ago.

But the attack on minimum wage laws is hardly unique to Ohio.

Since it became law, Republican lawmakers have waged various attacks on federal minimum wage legislation, falsely attacking it as a burden on small businesses and saying it stunts job creation, despite a lack of evidence on back up those claims. One of the Senate’s biggest critics of the minimum wage was former Sen. Rick Santorum (R-PA), who is currently contemplating a run for president. And in 2007, Senate Republicans demanded that any increase in the minimum wage be accompanied by a tax cut for small businesses. They were successful, and increased the minimum wage to its current amount of $7.25 by offsetting the increase with $4.8 billion in small business tax breaks

Other conservatives have included the minimum wage among the many federal programs they view as unconstitutional overreaches into state’s rights, similar to federal child labor laws and federal safety standards.

Meanwhile, a recent study from Michigan showed that a worker making the minimum wage does not earn enough each week to support him or herself. According to the report, in Michigan, where the minimum wage is also $7.40, a single worker with no children would need to make more than $12 an hour to cover basic food, shelter, clothing, and transportation costs. A single mother with two children, meanwhile, would need to make $24.49 an hour — more than three times the minimum wage — to support herself and her family.

This Blog Originally Appeared in Think Progress on June 1, 2011. Reprinted with Permission.

About the Author: Travis Waldron is a reporter/blogger for ThinkProgress.org at the Center for American Progress Action Fund. Travis grew up in Louisville, Kentucky, and holds a BA in journalism and political science from the University of Kentucky. Before coming to ThinkProgress, he worked as a press aide at the Health Information Center and as a staffer on Kentucky Attorney General Jack Conway’s 2010 Senate campaign. He also interned at National Journal’s Hotline and was a sports writer and political columnist at the Kentucky Kernel, the University of Kentucky’s daily student newspaper.

Four Years Ago Today, Hardworking Families Finally Got a Little Help

Monday, May 30th, 2011

senator_jon_testerExactly four years ago, hardworking folks across the country finally got a pay raise ten years in the making.

One of the first laws I helped pass, just a couple of months after joining the Senate, was the Fair Minimum Wage Act. And it became law four years ago today.

Passing that law was a promise I’d made to Montanans. I’m proud that it was a promise kept.

On the same ballot where my name appeared in 2006, Montanans overwhelmingly passed a measure raising our state’s minimum wage. I endorsed the effort and it earned the support of 73 percent of Montanans.

Montanans sent a clear message with that vote–that we understand the value of workplace protections like the minimum wage.

Because by 2006, years of failed federal economic policies by politicians in Congress had led to Montana coming in 50th (dead last) for wages in the entire country.

Montanans understand the minimum wage is an American value. And it’s a value I took with me to the Senate, where I fight for our working families every day.

I fought to pass the Fair Minimum Wage Act–which raised the minimum wage after the longest gap between increases in history–for the same reasons I’ve fought for more jobs, better access to veterans’ care and lower taxes for working families. And it’s why I fought to put health care decisions in the hands of patients instead of insurance companies.

For the same reasons, I fought for other workplace protections like the Lillie Ledbetter Fair Pay Act to prevent discrimination against women.

I’ve fought for these changes because I’m a third generation family farmer and small business owner and I know firsthand the challenges that working Montana families face.

They deserve leaders who work for them.

Other members of Congress have had different priorities over the years. But I personally believe public service is not about looking out for your own career or your own paycheck. Public service should be about building a better future for our kids and grandkids.

On this anniversary, let’s redouble our efforts to strengthen the middle class, in Montana and across the country.

Because a lot of politicians who’ve stood in the way of progress for our working families have no idea what it’s like to earn a minimum wage.

Maybe if they did, we’d see how quickly they start changing their tune.

This article originally appeared in the Huffington Post on May 25, 2011. Reprinted with permission.

About the Author: Senator Jon Tester is a third generation family farmer from Big Sandy, Montana.  He farms the same land his grandparents homesteaded nearly 100 years ago.  During his first Senate term, he has earned a reputation as a champion for rural veterans, a pioneer in government transparency and a powerful voice for rural America.

Why Are Millions of Workers Excluded From Minimum Wages?

Thursday, September 30th, 2010

Image: Richard NegriThe United States is a country where hard work is supposed to be rewarded. If you agree with that, would you be shocked to learn that there are more than 1.6 million homecare workers who are being denied federal minimum wage and overtime protections under current labor laws? And it is almost 2011!

Chew on this for a minute: More than 1 million hardworking Americans are legally denied basic labor rights most of us take for granted at this point. How did that happen, what can we do to change that?

It all goes back to The Fair Labor Standards Act (FLSA), which was enacted in 1938 to ensure a minimum standard of living for workers through the provision of minimum wage, overtime pay, and other protections – yet, domestic workers were excluded.

In 1974 the FLSA was amended to include domestic workers, such as housekeepers, full-time nannies, chauffeurs, and cleaners. However, people who were described as “companions to the elderly or infirm” were for some reason excluded from the law. They were compared to babysitters…

I love asking the question: If your elderly family member needed homecare to change herself, use the bathroom, get lifted from the chair to the sofa, and then have her meds dispensed at specific times; would you call the babysitter you call for date night with your spouse? Of course you wouldn’t, so why does the government consider these hardworking homecare providers babysitters? Yeah, I don’t know either.

In 2001 the Clinton Department of Labor finds that “significant changes in the home care industry” have occurred and issued a “notice of proposed rulemaking” that would have made important changes to this bizarre exemption. So, that was good news, right?

It was good news until W came to town. The Bush Administration terminated the revision process shortly after taking office. Thanks, W!

Then comes 2007: the US Supreme Court, in a case brought by New York home care attendant Evelyn Coke, upheld the DOL’s authority to define this exception to the FLSA. In short, that means that this crazy archaic law can be reversed beginning with the DOL, today.

Before we get you to take action on this situation, please keep in mind that these million-plus workers are currently living at near poverty level earning a median income of $17,000 a year. Most of these workers, who both love their work and are good at their work, must have two and three jobs to just make ends meet. With this scenario in play, these workers are quick to burn out or leave their trade entirely. This ultimately comes back to the consumer who often finds it difficult to hire and retain high quality home care services.

This article was originally posted on SEIU”s Blog.

About the Author: Richard Negri is the founder of UnionReview.com and is the Online Manager for the International Brotherhood of Teamsters.

I recognize you do amazing work, but you’re still not getting minimum wage

Tuesday, August 24th, 2010

Image: Richard NegriSomeone sent me an email earlier entitled, “U.S. Senate Declares National Direct Support Professionals Recognition Week.”

The big week of recognition is slotted to begin September 12th.

In the announcement for “Recognition Week,” Senator Ben Nelson says, “Direct support professionals provide an invaluable service to the millions of Americans living with disabilities. I’m proud to honor these hard-working individuals who give so much to help those in need. Their dedication to service is an example to us all.”

So, bravo to the Senate for marking a week in September to honor these workers, but honor and a week of applause doesn’t pay the bills. Surely, they must know this.

While the Senate “recognizes” these workers, more than 1.5 million home care workers are currently living at near-poverty level earning a median income of $17,000 a year. Most of these workers, who both love their work and are good at their work, must have two and three jobs to just make ends meet. Many of these workers need food stamps to put food on their tables. All this ultimately hurts the consumer, who often finds it difficult to find and retain high quality home care services.

Home care workers–the folks who provide essential care and services to more than 13 million seniors and people with disabilities every day–are legally excluded from federal minimum wage and overtime protections.

While we should definitely celebrate these workers’ contribution to society, we should also recognize their needs as working people. Perhaps we should help them get out from near poverty levels and give them the right to have a day off from time to time to take care of their own families? Why shouldn’t they be paid overtime when they work 70 and 80 hours a week with sleepovers as part of the gig?

I’ve mentioned this before in other entries but it is worth repeating: the U.S. Department of Labor has the authority to make this long overdue regulatory change and do the right thing for home care workers and the individuals and families who depend on their services. In other words, they have the authority to turn this around so that home care workers can enjoy the same benefits many take for granted.

What we need to do to bring this change about is let people know that this issue even exists, and second, we need take some very basic actions online.

On Facebook, become a fan of the Department of Labor’s Facebook page and post this message:

Secretary Solis, home care workers deserve minimum wage and overtime protection. It’s time to change the companionship exemption regulations: http://bit.ly/a5pF1e

On Twitter, copy, paste, and tweet this message:

@HildaSolisDOL, it’s time to end the exclusion of home care workers from minimum wage and overtime exemption: http://bit.ly/a5pF1e

On Facebook, you should also become a fan of this campaign’s page:

Homecare Workers Deserve Minimum Wage Protection.

Here’s some legal background on how home care workers came to be legally excluded from federal minimum wage and overtime protections:

* 1938 – The federal Fair Labor Standards Act (FLSA) is enacted to ensure a minimum standard of living for workers through the provision of a minimum wage, overtime pay, and other protections — but domestic workers are excluded.

1974 – The FLSA is amended to include domestic employees such as housekeepers, full-time nannies, chauffeurs, and cleaners. However, persons employed as “companions to the elderly or infirm” remain excluded from the law.

1975 – The Department of Labor (DOL) interprets the “companionship exemption” as including almost all home care workers , even those employed by third parties such as home care agencies.

2001 – The Clinton DOL finds that “significant changes in the home care industry” have occurred and issues a “notice of proposed rulemaking” that would have made important changes to the exemption. The revision process is terminated, however, by the incoming Bush Administration.

2007 – The US Supreme Court, in a case brought by New York home care attendant Evelyn Coke, upholds the DOL’s authority to define exceptions to FLSA.

Today: We are calling on DOL Secretary Hilda Solis to ensure that home care workers receive basic labor protections.

Together we can create the same labor protections for home care workers that virtually ever other worker in the economy enjoys.

About the Author: Richard Negri is the founder of UnionReview.com and is the Online Manager for the International Brotherhood of Teamsters.

Unpaid Internships

Wednesday, April 7th, 2010

No doubt following up on Charlie Sullivan’s post on unpaid law student internships, Steven Greenhouse at the New York Times has a story on the more general use of these internships.  It’s obviously been an issue for some time, but the bad economy has given employers more incentives to pinch pennies and made interns more desperate for experience, even the unpaid variety.  These internships can provide valuable experience and lead to a good job, but they can also undermine the purpose of wage laws and highlight class problems when only more wealth students can afford months of unpaid full-time work.  From the article:

With job openings scarce for young people, the number of unpaid internships has climbed in recent years, leading federal and state regulators to worry that more employers are illegally using such internships for free labor.

Convinced that many unpaid internships violate minimum wage laws, officials in Oregon, California and other states have begun investigations and fined employers. Last year, M. Patricia Smith, then New York’s labor commissioner, ordered investigations into several firms’ internships. Now, as the federal Labor Department’s top law enforcement official, she and the wage and hour division are stepping up enforcement nationwide.

Many regulators say that violations are widespread, but that it is unusually hard to mount a major enforcement effort because interns are often afraid to file complaints. Many fear they will become known as troublemakers in their chosen field, endangering their chances with a potential future employer.

The Labor Department says it is cracking down on firms that fail to pay interns properly and expanding efforts to educate companies, colleges and students on the law regarding internships.

The story also notes the DOL’s criteria for legal, unpaid internships, including similarity to academic or vocational training; no displacement of regular, paid workers; and that the employer derive no immediate advantage from the intern.  That last one, in particular, seems hard to reach in a lot of cases.

Remember that you heard it here first.

*This post originally appeared in Workplace Prof Blog on April 4, 2010. Reprinted with permission.

About the Author: Professor Hirsch joined the University of Tennessee law faculty in August 2004 after working in the Appellate Court Branch of the National Labor Relations Board in Washington, D.C. and serving as a judicial clerk for the Honorable Haldane R. Mayer on the U.S. Court of Appeals for the Federal Circuit and the Honorable Robert R. Beezer on the U.S. Court of Appeals for the Ninth Circuit. His practice experience focused on labor and employment law and he currently writes and teaches in this area, as well as federal courts. He also regularly speaks on various aspects of labor and employment law.

Did a Sodexo Manager Really Just Say That?

Friday, December 11th, 2009

Image: Brad LevinsonAs over 1,500 students at Loyola Marymount University begin a massive boycott of Sodexo’s dining facilities this week, Sodexo’s general manager for the area, Lisa Farrell, has issued a revealing quote that may enrage workers and students all over the country.

The school’s newspaper, the Los Angeles Loyolan has the story of the boycott, which students are staging for reasons including “reducing the prices of perishable items such as fruit, making price reductions for students who choose to forgo meat and ensuring that workers are paid a living wage,” according to student Megan Lynch.

According to Lynch, Sodexo justifies their “high prices” by explaining that “workers are paid the local living wage of $11.25 per hour.” The students, however, “have come to find that many Sodexo employees make $8.50 to $9.00 an hour,” reports the Loyolan.

But here’s the kicker: within the article itself, Sodexo manager Lisa Farrell unintentionally admits that Sodexo does not pay a living wage, as defined by the City of Los Angeles’s living wage law. Here’s what she’s said to the Loyolan:

“The current L.A. living wage is … $10.30 an hour, with health benefits, or $11.55 an hour if no health benefits are offered. Here at LMU, we have a minimum starting wage of $9.05 per hour plus one meal per shift valued at $1.25…Sodexo offers full benefits to all full-time employees.”

The last time we checked, $9.05 an hour does not equal $10.30 an hour, nor does it equal $11.55 an hour.

And what about that free meal per shift valued at $1.25? Even if we gave Sodexo the benefit of the doubt and included that figure in lieu of actual pay – which would be extremely unusual – that would mean that a worker making $9.05 an hour and receiving the $1.25 meal would only make the living wage for the hour that they’re afforded that meal. For the rest of the hours they’re working, they’re still making $9.05. Nice try, though.

It’s also unclear how many of the Sodexo workers on site actually are afforded full-time positions that provide health-care benefits- meaning that for these workers, they would have to make $11.55 an hour to meet the living wage guidelines – not the $8.50 and $9.00 that the students are reporting.

And how about a second look at the $1.25 figure? As Farrell admits, the meals that the workers are provided are “valued at 1.25.” Explain that to the students spending $10 for that meal, as LMU student John Twehill says he does.

*This post originally appeared in the SEIU Blog on December 9, 2009. Reprinted with permission from the author.

About the Author: Brad Levinson is new media strategist for SEIU, where he current serves as the new media lead for the organization’s Property Services division.  In addition to his daily role of designing and implementing new media programming for SEIU’s food service workers, security officers and janitors, his current work involves developing a functional model for successful online union organizing.  Brad’s primary interests include online organizing, emerging media trends, online video, online anthropology and culture, and digital divide issues.  He is a graduate of Drexel University and earned his masters in media and politics from Georgetown University.

Robbed on the Job

Tuesday, September 29th, 2009

(Reposted from Open Left)

Wage Theft Is Rampant-Estimated at Roughly $2.9 Billion Annually

Last week I wrote a diary on a new report about widespread wage theft among low-income workers, “”Broken Laws, Unprotected Workers”".  I said that I was working on an article for Random Lengths News.  It was published on Thursday, and I’m republishing here below.

*****

Property crime is a serious concern in America today.  In 2007, the total dollar value of all property officially reported stolen in California-population about 38 million-was just over $2.8 billion, almost half of which was motor vehicle theft. The rest came to $1.47 billion.  Of that $2.8 billion close to one-third of it was recovered-$912 million.

But a new report indicates that these statistics are woefully incomplete.  ”Broken Laws, Unprotected Workers” finds that wage theft is rampant among the bottom 15 percent of the workforce, and so widespread that workers in just three cities-Los Angeles, Chicago and New York City (total population about 15 million)-had roughly $2.9 billion in wages stolen from them in 2008, a rate more than double that of reported theft in California.  As for recovering any of it, workers were more likely to get fired for asking than ever seeing a dime of what had been stolen from them.

“The reason we did this study, we were running to into this in our qualitative work,” said Ruth Milkman, a professor of sociology at UCLA who was one of eleven co-authors of the report. “My collaborators had all encountered this,” she said, “But nobody really knew how common it was.  We thought, wow, we could really figure this out.”

Paul Rosenberg :: Robbed On The Job

The study involved a representative survey of 4,387 workers, who were robbed in various different ways.  More than two-thirds-68 percent-experienced at least one pay-related violation the previous work week. The average stolen was $51-bad enough for anyone. But these are the lowest-paid workers in the economy.”Their average earnings for a week were $339,” said Milkman. “The amount lost was 15 percent.”

This equals an average yearly loss of $2,634 out of $17,616. The report estimates that over 1.1 million workers are affected. But they weren’t the only ones hurt, Milkman noted. “If these people were being fully paid, they would spend it locally and local businesses and communities would benefit,” she pointed out.”  What’s more, she added, it also hurts companies that are obeying the law, and paying workers what they’re owed, making it harder for them to compete with lawbreakers.

Breaking the violations down, the report found that 26 percent of those surveyed were paid less than the minimum wage the previous work week. Of those, 60 percent were robbed of more than $1 per hour.  Over one quarter worked more than 40 hours the previous week, of which 76 percent were robbed of legally required overtime pay. On average, this amounted to 11 hours of overtime “either underpaid or not paid at all.”

Additionally, almost 40 percent of those surveyed worked off the clock-either before or after their paid shift. Of these 70 percent were not paid for their extra work.

Milkman cites one example of a nurse’s aide she interviewed. “She told me that over and over again she would clock out for the day, and then the supervisor would say, ‘Maria, could you check in on so-and-do in Room 23?’”

Adding insult to injury is the feeling of helplessness. “She didn’t feel she could do anything about it,” Milkman said.

That feeling is common among crime victims-but how many other sorts of crime victims are victimized day after day, week after week? And what does it means to be robbed by someone you interact with every day?  What does this do corrode people’s determination and belief in the American dream?

“Great question,” Milkman responded, “But not one we tried to probe, so I can’t presume to comment.”

Tipped jobs not only suffered sub-standard pay-30 percent were paid less than the tipped worker minimum wage-but also theft of their tips-which was reported by 12 percent of tipped workers.

In a country where crime stories pepper the local tv news every night, it’s astonishing that such a massive crime wave has been going on, virtually undetected right under our noses. One reason for this is what happens to the victims if they try to complain. According to the report, one in five workers reported trying to complain to their employer, or trying to form a union in past year. For their troubles, “43 percent experienced one or more forms of illegal retaliation from their employer or supervisor.” These included suspensions or firing, threats to cut hours or pay, and threats to call immigration.

“One case that really affected me involved a woman, a housekeeper in a hotel chain, well-know, but I can’t say which one, in the Valley,” Milkman recalled. “She cleaned rooms in the hotel. She was undocumented. She received her pay in cash. She wasn’t paid even minimum wage.  She worked over 40 hours a week.  Finally, she complained to the supervisor and was told they didn’t need her the next week. She was fired.”  But there was more. “This is also a tale about tip work,” Milkman explained. “When she got done cleaning, the supervisor would go into the rooms before she returned, to steal her tips.”

“I was in tears when I heard that,” Milkman said.

There are things that can be done, and the report cites three principles that it says “should drive the development of a new policy agenda to protect the rights of workers.” First is to strengthen enforcement of existing labor laws, both by increased staffing and by new enforcement strategies.  Second is updating legal standards for today’s labor market-including strengthening the right to organize. Third is to establish equal status for immigrants in the workplace.

Now that the problem is known, action is possible-but not guaranteed.  Labor Secretary Hilda Solis has promised increased enforcement, Milkman noted, but that’s only one part of the solution. Key to a full solution is public sentiment and political will.

“The danger with this is, this is a new enough phenomena that people are horrified when they hear about it,” Milkman said. “But the real danger is that it becomes a part of the economic landscape,” she cautioned. “Now the question is what are we going to do about it?”

There is a real danger that it could become something that we simply accept, she warned  And here Milkman drew an analogy to the emergence of mass homelessness in the early Reagan era.  ”When it first started, there was a lot of distress and intense discussion and debate about it, and now we take it for granted. It’s like we live in India.”

The hope is that times are different now, and the direction of the economy can change.

“These laws were put in place when the economy changed directions during the Great Depression,” Milkman said. “We have an opportunity, with the Obama Administration, to change directions again.”

“But it’s not just going to happen,” she warned. “People have to push for it.

About the Author: Paul Rosenberg is progressive activist and journalist who is a frontpage blogger for OpenLeft.org and Senior Editor for Random Lengths News, an alternative bi-weekly in the Los Angeles Harbor Area, where he specializes in labor, community and environmental justice issues. From his anti-war and civil rights activism as a teenager in the 1960s, through his involvement in food co-ops in the 1970s, to his Central American solidarity work, media and renters’ rights activism in the 1980s, and beyond, he has focused his energy primarily on issue activism, with increasing attention to media from the mid-1980s on. He began working as a freelance journalist with a primary focus on op-eds and book reviews in 1994, and joined Random Lengths News in 2002. He’s been published in the Progressive magazine, Publishers Weekly, the LA Times, Christian Science Monitor, and Dallas Morning News.

This article originally appeared in Open Left and Random Lengths News on September 27. 2009. Re-printed with permission from the author.

Employee Free Choice supporters blast Rite Aid with new report on company’s union busting at West Coast warehouse

Thursday, August 13th, 2009

Supporters urging passage of the Employee Free Choice Act took to the streets on Monday, August 10 to back warehouse workers at Rite Aid’s massive distribution center in Lancaster, California. They released a new Jobs with Justice report about how management there has aggressively interfered in workers’ freedom to form a union.

The 12-page report: “Rite Aid, Oliver J. Bell & Associates, and the Case for the Employee Free Choice Act” documents how management employed union busters and violated labor laws. Last year, the National Labor Relations Board was prepared to charge Rite Aid with 49 unfair labor practice charges before the cases were settled out of court.

“Union avoidance consultants, such as those engaged by Rite Aid, have contributed significantly to the subversion of the National Labor Relations Act,” said John Logan from the Institute for Research on Labor & Employment at the University of California at Berkeley whose research has focused on workers’ rights. “Using every weapon at their disposal, they encourage employers to fight to the death efforts by employees to form unions.”

The actions were led by local Jobs with Justice coalitions in Boston, Bangor, Cleveland, Indianapolis, Montpelier, Portland, OR and Richmond, VA. AFL-CIO organizer Rand Wilson and two community activists infiltrated a major pharmaceutical industry conference at the Boston Convention Center where a Rite Aid manager was speaking. As soon as he was done, they stood up and blasted Rite Aid’s union busting while distributing copies of the report to the pharmacy convention delegates. The report was also released in six other cities. At some locations, other Rite Aid workers’ unions — 1199 SEIU, UFCW and the Teamsters — joined the support actions.

Despite the company’s attacks, a majority the of the workers voted to join the International Longshore and Warehouse Union, Local 26 in March 2008. But more than a year later, Rite Aid management is still refusing to negotiate a first contract that would improve wages and working conditions for employees.

“Rite Aid’s intense and longstanding interference in the workers efforts to form a union — in which professional union busters have played a major role — and its failure to bargain in good faith with employees are seen as prime examples of why efforts to pass the Employee Free Choice Act are so important,” said Veronica Turner, Vice President for Health Systems at 1199 SEIU in Boston.

“If Employee Free Choice were the law of the land, the workers at the Rite Aid distribution center would have settled their contract by now. Access to mediation and arbitration on first contracts would prevent companies like Rite Aid from dragging their feet in negotiations to frustrate workers and defeat efforts to improve working conditions,” said Mark Govoni, Vice President of UFCW Local 1445 in Boston.

After the press conference, activists announced they would leaflet five Rite Aid stores in the Boston metropolitan area to inform customers about the company’s aggressive interference in workers’ rights and the need for passage of the Employee Free Choice Act to help prevent union busting.

About the Author Rand Wilson: was a Teamster communications staffer who helped coordinate the 1996-97 contract campaign and strike at UPS. He can be reached at rand@mindspring.com. 

This article originally appeared on Working Life on August 11, 2009 and is reprinted here with permission from the source.

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