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How “Right to Work Shirk” Laws Kill Jobs – and Hurt All of Us

Friday, December 14th, 2012

Michigan’s recent battle makes this a good time to explain the union movement’s important role in our economy’s overall health. We’re about to explain why today’s war on unions is bad for all of us, no matter what we do for a living, and we’ll do it in four steps.

But first a word about language: “Right to work” is a misnomer for laws which let employees enjoy the benefits of union membership – at least for a little while, until they’re stripped away – without joining or contributing.

So we’ll call them “right to shirk” laws instead. And we’ll call the people who back these laws Shirkers.

And while we’re at it, let’s stop calling the states that have adopted this legislation “right to work.” They don’t give people any new rights. They take rights away, by making it illegal for employees to organize and negotiate together. They even take away employers‘ rights – to sign a certain kind of contract.

So let’s give the other states a name instead: In a nod to the Jim Crow origin of these laws, let’s call the ones which don’t have these laws “free states.”

Free Ride

Right to Shirk laws allow freeloaders to profit from the efforts of others – without contributing to the effort, and in a way that harms the common good. The billionaires and corporations behind these laws wouldn’t deliberately do anything like that, would they? Why, that would be like letting people make billions from the works of government – things like roads, the Internet and publicly-educated customers – without paying their fair share of taxes.

Oh, wait.

Right to Shirk laws are job-killers. Here are four steps to understanding why:

1. Think nationally, not just locally.

Advocates say these laws create jobs. They don’t. Their “evidence” is based on studies which show modest job growth in Right to Shirk states when compared to free states.  But all that proves is that places that are politically hostile to organized labor also offer other types of corporate favoritism.

It also suggests that Right to Shirk states can steal jobs from free states — as long as the jobs last, anyway.

The Shirker movement was started in the late 1940s by a handful of Southern politicians who were in the palm of big textile mills. They were able to draw textile jobs away from free Northern cities like my hometown of Utica, NY – until those jobs left this country altogether.  That’s not “creating” jobs — that’s killing good jobs and replacing them with ones that don’t pay enough.

The concept of “solidarity” has been tarred with McCarthyite smears. But “solidarity” is just another way of saying “We’re all in this together.”  The Right to Shirk crowd wants to stop that kind of thinking so it can pit state against state and employee against employee, shredding our social fabric for personal gain.

It’s no accident that the Shirker movement was started by the reactionary white politicians of the Jim Crow South. Back then they were still pining for the days when they could offer some folks the “right to work” … for nothing.

2. We’re fighting over a shrinking pie instead of making the pie bigger.

Things are bad. We need millions of jobs – and the jobs we do have don’t pay enough.

The graphic which Business Insider likes to call “the scariest chart ever” shows how far we are from creating the number of jobs needed to make this country’s economy grow and thrive again.  Job growth like that we’ve seen recently is always welcome, but it’s not nearly enough to get us out of this ditch. How do we get moving again?

To answer that question we need to know what’s worked in the past.

3. The real “job creators” are people with jobs – good jobs.

How did this nation finally escape the after-effects of the Great Depression and begin its greatest decades of economic growth? Government spending  – on roads, bridges, schools, and other vitally needed services – played a key part.

Unions were a crucial part of this process, too. By fighting for higher wages and better benefits, unions ensure that working people have the means to purchase consumer items, housing, and other goods and services.  Companies have to hire more people to keep up with demand – and the good jobs keep coming.

That’s why the Republican Party platform of 1956 boasted that “unions have grown in strength and responsibility, and have increased their membership by 2 millions” during Dwight D. Eisenhower’s first term. Back then Republicans understood that a growing middle class was good for the entire economy.  That party platform also said that “America does not prosper unless all Americans prosper.” Their rule: No shirkers.

But then in those days our economy wasn’t dominated by Wall Street megabanks – institutions that don’t build or sell anything. And politicians weren’t completely in bankers’ pockets back then, because the public wouldn’t have tolerated it.

We shouldn’t tolerate it now.

4. When you kill unions, that reduces consumer income – which kills jobs.

The Shirker assault on unions has taken its toll. Only 25 states remain free to unionize, and union membership has fallen dramatically:

 

Their logic would suggest that the plunge in union membership we’ve seen since 1960 must have led to a rise in good jobs.  Did it? Let’s take a look at manufacturing:

That’s my freehand drawing (and therefore not exact) of the trend line in union membership, superimposed by the number of manufacturing jobs in the United States.  Manufacturing jobs kept on increasing for more than twenty years, even as union membership increased. These jobs experienced periods of decline and stagnation as union membership fell, even before the devastating impact of NAFTA.

Consumer demand is vital to growth. That demand is tied to consumers’ income, and to their belief that life in the future will be as good or better than it is today.  Those are the two things we need to reinforce, and unions are crucial to that effort.

We need to get our economy growing again. Until then most Americans, unionized or not, will continue to struggle with stagnating wages and an ongoing economic drag that can feel a lot like a recession.  As Paul Krugman likes to say (he said it in our radio interview), This isn’t rocket science. We know how to do this.

Destroying unions is just another way for the Shirkers to make sure that we never do.

This post was originally posted on Our Future on December 13, 2012. Reprinted with Permission.

About the Author: Richard Eskow is a well-known blogger and writer, a former Wall Street executive, an experienced consultant, and a former musician.  He has experience in health insurance and economics, occupational health, benefits, risk management, finance, and information technology.  He has a somewhat unique perspective on the current financial crisis, since he worked for AIG for a number of years (although not in its infamous Financial Products division). Richard has consulting experience in the US and over 20 countries. Past clients include USAID, the World Bank, the State Department, the Harvard School of International Public Health, the Government of Hungary, as well as corporations and investors. He has experience in financial and data analysis, systems design, operations, and management.

What You Need To Know About The Michigan GOP’s ‘Right-To-Work’ Assault On Workers

Monday, December 10th, 2012

On Thursday, Michigan Gov. Rick Snyder (R) backtrackedon his commitment to avoid so-called “right-to-work” legislation and by the end of the day, both the Michigan House of Representatives and the Michigan state Senate had introduced and passed separate bills aimed at the state’s union workforce.

Michigan Republicans claim the state needs the measure to stay competitive with Indiana, where lawmakers passed “right-to-work” last year. In reality, though, such laws have negative effects on workers and little effect on economic growth. Here is what you need to know about the state GOP’s campaign:

THE LEGISLATION: Both the state House and state Senate passed legislation on Thursday that prohibits private sector unions from requiring members to pay dues. The Senate followed suit and passed a different but similar measure that extends the same prohibition for public sector unions, though firefighters and police officers are exempt. The state House included a budget appropriations provision that is intended to prevent the state’s voters from being able to legally challenge the law through a ballot referendum. Due to state law, both houses are prevented from voting on legislation passed by the other for five days, so neither will be able to fully pass the legislation until Tuesday at the earliest.

THE PROCESS: Union leaders and Democrats claim that Republicans are pushing the legislation through in the lame-duck session to hide the intent of the measures from citizens, and because the legislation would face more trouble after the new House convenes in January. Michigan Republicans hold a 63-47 advantage in the state House, but Democrats narrowed the GOP majority to just eight seats in November. Six Republicans opposed the House measure; five of them won re-election in 2012 (the sixth retired). And Michigan Republicans have good reason to pursue the laws without public debate. Though the state’s voters are evenly split on whether it should become a right-to-work state, 78 percent of voters said the legislature “should focus on issues like creating jobs and improving education, and not changing state laws or rules that would impact unions or make further changes in collective bargaining.”

THE CONSEQUENCES: While Snyder and Republicans pitched “right-to-work” as a pro-worker move aimed at improving the economy, studies show such legislation can cost workers money. The Economic Policy Institute found that right-to-work laws cost all workers, union and otherwise, $1,500 a year in wages and that they make it harder for workers to obtain pensions and health coverage. “If benefits coverage in non-right-to-work states were lowered to the levels of states with these laws, 2 million fewer workers would receive health insurance and 3.8 million fewer workers would receive pensions nationwide,” David Madland and Karla Walter from the Center for American Progress wrote earlier this year. The decreases in union membership that result from right-to-work laws have a significant impact on the middle class and research “shows that there is no relationship between right-to-work laws and state unemployment rates, state per capita income, or state job growth,” EPI wrote in a recent report about Michigan. “Right-to-work” laws also decrease worker safety and can hurt small businesses.

Union leaders are, of course, aghast at Snyder and the GOP’s right-to-work push. “In a state that gave birth to the modern U.S. labor movement, it is unconscionable that Michigan legislators would seek to drive down living standards for Michigan workers and families with a law that will do nothing to improve either the state’s economic climate or the quality of life for Michigan residents,” RoseAnn DeMoro, the executive director of National Nurses United, said in a statement.

This post was originally posted on December 7, 2012 on Think Progress. Reprinted with Permission.

About the Author: Travis Waldron is 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.

How A Proposed Pennsylvania Law Would Make Workers Pay Taxes To Their Boss

Wednesday, October 24th, 2012

According to Good Jobs First, an organization that promotes accountability in economic development, several states allow corporations to literally pocket their employees’ tax payments. Rather than having those taxes go towards public services, the companies withhold money from their workers’ paychecks and just keep it, never remitting it to the state, under the guise of a job creation program.

Good Jobs First found that “nearly $700 million is getting diverted each year. And it is very unlikely that the affected workers are aware, given that no state requires that the diversion be disclosed on pay stubs.” Now, Pennsylvania is considering becoming the latest state to participate, as the Philadelphia City Paper reported:

Republican Governor Tom Corbett is deciding whether or not to sign legislation that would require some workers to pay taxes to their bosses. Yes, you read that right. The bill, which would allow companies that hire at least 250 new workers in the state to keep 95-percent of the workers’ withheld income tax, is an effort to to recruit Oracle to the state.

Your taxes would get withheld by your boss like normal, but they would then keep them and spend it on private jets or monogrammed bathroom fixtures or whatever instead of turning them over to the state–turning your tax dollars over to the state being the whole reason they were ostensibly “withheld” in the first place.

“These deals typify corporate socialism, in which business gains are privatized and costs socialized,” wrote Reuters David Cay Johnson. “Leaders in both parties embrace these giveaways because they draw campaign donations from corporate interests and votes from people who do not understand that they are subsidizing huge companies.” The Pennsylvania Budget and Policy Center listed a host of reasons that Gov. Tom Corbett (R-PA) should reject the law, including its effect on state revenue and its loopholes that will allow companies to collect their workers’ tax payments even if they create no new jobs.

This post originally appeared in ThinkProgress’s Wonk Room on October 24, 2012.  Reprinted with permission.

About the Author: Pat Garofalo is an Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.

Inferior workplace health and safety regulations are killing us (literally!)

Friday, May 20th, 2011

Image: Kate ThomasOn Monday, May 16, SEIU member Cathy Stoddart, RN, BSN spoke at a briefing with U.S. Senate staff about the importance of strong health and safety workplace regulations. The briefing familiarized HELP committee staff with the benefits of regulations for American consumers and workers, as well as the costs of government’s failure to ensure a safe workplace.

In her dual role serving an Executive Board member of her SEIU Healthcare PA and as a nurse at Pittsburgh’s Allegheny General Hospital, Cathy is no stranger to making her voice heard on workers’ rights and workplace safety issues. She spoke in detail on Monday about how we might easily and affordably strengthen health and safety regulations to prevent injuries and illnesses, save lives, and improve patient care. “Regulations don’t kill jobs,” Cathy pointed out, “but a lack of workplace health and safety regulations does kill workers.”

The reality is much more needs to be done to regulate hazards that healthcare workers face. The statistics speak for themselves…

Healthcare workers have higher injury and illness rates than workers in mining, manufacturing or construction; yet very few health and safety standards for these caregiving workers exist.

For example, there are currently no standards to protect healthcare workers from the leading hazard they face: an epidemic of neck, back and shoulder injuries from manual patient handling. A Safe Patient Handling regulation that required the provision of lifting devices to protect healthcare workers from career-ending back, neck and shoulder injuries would go a long way towards solving this pervasive problem. With the recent anti- worker rhetoric combined with staffing cutbacks, we are also seeing an alarming increase in workplace violence. We need a national OSHA workplace violence prevention standard to protect healthcare workers from getting assaulted by patients, residents and clients.

A bill that’s currently making the rounds in the House Judiciary and Rules Committees presents a huge potential barrier to removing the threats healthcare workers still face on the job. H.R. 10 (the REINS Act) would require both Houses of Congress to approve virtually all new major regulations before they go into effect, which means that any new regulation would get caught up in Congressional gridlock.

What would passage of the REINS Act specifically mean for working people? Nothing good, that’s for sure. HR 10, if enacted, would essentially make it impossible to ever issue another regulation to protect workers from on-the-job hazards. Consider that in the year 2010 alone, federal agencies issued more than 90 major new rules that could likely have been subject to the REINS Act’s requirements. There are simply not enough hours in a day to allow Congress to allot the time necessary to consider and approve even the most important rules (much less 90 of them).

The OSHA standard setting process currently in place is essentially broken. Standards that previously took a year to promulgate now take decades, if they come out at all. We need to expedite rulemaking, not slow it down, like the REIN Act aims to do.

This article originally appeared in SEIU Blog on May 19, 2011. Reprinted with permission.

About the Author: Kate Thomas is a blogger, web producer and new media coordinator at the Service Employees International Union (SEIU), a labor union with 2.1 million members in the healthcare, public and property service sectors. Kate’s passions include the progressive movement, the many wonders of the Internet and her job working for an organization that is helping to improve the lives of workers and fight for meaningful health care and labor law reform. Prior to working at SEIU, Katie worked for the American Medical Student Association (AMSA) as a communications/public relations coordinator and editor of AMSA’s newsletter appearing in The New Physician magazine.

What Do You Believe About Work That Is Wrong?

Monday, October 12th, 2009

After fifteen years of writing Workplace911 and its predecessor Working Wounded I’ve concluded that there are a lot of myths about work. I thought it would be fun to tackle some of the bigger ones in this week’s blog. Check out my list below and send me some of your favorites.

It’s impossible to be overpaid when someone else signs the paycheck. Let me offer a short translation of this rule—as long as someone is willing to pay you a ridiculous amount of money to work for them, then you aren’t overpaid because they have established a market for your services. I disagree. Corporate salaries are absurd. Cost cutting, layoffs and a myriad of other organizational sacrifices should float more than just the boats of the CEO and a few top executives. I’m no Marxist, CEOs do deserve a big paycheck when they are successful. But this escalator only seems able to go up.

Greed is good. The biggest problem here is that when Oliver Stone came up with this mantra for his Gordon Gekko character in the movie Wall Street it was meant as parody. Yet I hear some variation of it whenever I talk to traders, salespeople, etc. Henry Ford, hardly a commie himself, once said that only a fool holds out for the last dollar. I think wretched excess is a terrible way to run a company.

The bigger the jerk, the better the boss. Probably my favorite quote on management came from President (and General) Dwight Eisenhower. He once said, “Hitting people over the head isn’t leadership, it’s assault.” Sure jerks do get your attention and possibly results over the short term. But most employees will flee at the first chance they get. There are just too many sane bosses out there to continue to slave away for a jerk.

You’ve got to be first to market. Microsoft seems to me to be the only company that consistently puts second-rate products on the market and lives to tell the tale. The rest of us have to pick our spots and often the first to market position can’t justify launching a crappy product. So it often pays to wait.

Innovation is the middle name of American corporations. Despite rising productivity, I believe that corporations in the U.S. are running on fumes. Don’t believe me? Listen to most people talk about the management of their companies. It’s not a pretty sight. I see far more innovation right now coming from abroad and from the not-for-profit sector and I think it’s time that corporations started walking their talk.

Corporations are drowning in regulation. Tyco, Enron, WorldCom, etc. left in their wake Sarbanes Oxley and a host of other regulations. Undoubtedly Lehman, Goldman Sacks, etc. will leave their mark too. There is a lot of talk now about how corporations are being held back by senseless regulations. I hate filling out government forms as much as the next guy, but these laws came into place because of abuse by corporations. And in order to maintain the trust of the average investor these regulations need to remain in effect, no matter how much whining you hear from big business.

The bottom line isn’t just the bottom line. If I’ve learned one thing as an observer of business and the founder of four corporations, it’s that there are many bottom lines for a business. In addition to economic there are also social and environmental considerations. The financials really only are a part of the picture. The sooner that corporations take a broader view of the bottom line, the sooner they’ll begin to fully reach their potential.

About the Author: Bob Rosner is a best-selling author and award-winning journalist. His web site, workplace911.com, contains a comprehensive archive of strategies for surviving today’s workplace. He is a fan of Workplace Fairness and can be reached via bob@workplace911.com.

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