It’s crazy, but it’s true: I could not afford to go to work today.
I have a 45-minute commute to and from work, which costs me about ten dollars in gas each day. I’m down to six whole dollars, after paying what bills I could with my last paycheck. There are still unpaid bills, but there’s nothing I can do about them right now. I’m mostly worried about how the hell I’m going to feed my daughter until my next check on Friday.
This is not a position I ever expected to find myself in. I have a full-time job at a distribution center for a well-known retailer. The company has weathered the Great Recession pretty well, all things considered: overall sales are off by only 1%, a variance which until recently would have been seen as a business hiccup. But I find that the recession itself has given the Powers That Be at my job an excuse to do whatever they damn well please to their full-time employees.
The infuriating details are below the squiggle.
What frustrates me the most is that I shouldn’t even be in this position. I’m employed full-time, and I’ve been with this company for over five years–yet I cannot get ahead, no matter what I do. The reason why has much to do with the company’s recently-adopted position that full-time employees aren’t really an essential part; that is, they’ve come to believe that only salaried employees really matter. They don’t even call us non-salaried workers “associates” any more. Now they refer to us as “unskilled labor.”
About a year ago, my company announced a pay freeze for all full-time employees. This was done, we were told, in response to the economic dowturn. The reasons made sense at the time, and we took the news in stride. But lately, it’s starting to seem like something else. It seems there is money to be had…but not by most of us.
The pay freeze occurred at about the same time that the outgoing CEO was receiving a million-dollar severance package. Salaried employees–supervisors, managers, and such–were ostensibly included in the pay freeze, although they would continue receiving their monthly bonuses, typically three to five hundred extra dollars per paycheck. The Director of Operations (enjoying a salaried position, of course) actually joked out loud, “Whew! I was afraid I wouldn’t be able to buy that new car!” Ha-fuckin’-ha, asshole. Turned out, it wasn’t just a joke: two months later, he was coming to work in a shiny new Lexus convertible.
The average worker on the floor makes $8 or $9 an hour, which is barely enough to support any size family. Supervisors, meanwhile, start out at the equivalent of $25 an hour (with bonuses and other perks on top of that); managers and up are pulling six-figure salaries, at least. Now, on the face of it, I don’t mind that they make more. It’s how they go out of their way to make sure they get most of what’s left as well, to hell with everybody else, that has me and my co-workers silently enraged and visibly demoralized.
Following the pay freeze, management has raised the productivity bar on us twice: that is, we must do more work in less time to avoid getting disciplined or fired. How much we produce beyond the 100% “standard” determines our “incentive” pay. Whenever they raise the productivity bar, our incentive payouts go down. Those who can’t keep up are let go; those who do keep up are bringing home chump change. And few of us want to work very much harder than necessary to keep our jobs, since working at 200% production yields a paltry $45 (not much of an “incentive” there). So they’ve fired several people and not hired replacements, leaving the rest of us to double-up–and in some cases, triple-up–on the workload and attendant responsibilities. From 150 people a year and a half ago, we’re now down to fifty; those of us left are still doing the work of 150. In the end, the reduced staff just further fills their pockets.
After that, they eliminated sick time for all non-salaried employees, telling us it was because the old sick-time policy was being “abused” (abused how–by people getting sick?!) It’s all to “save some money,” we’re told…even though the company, as I said, isn’t doing much worse than years past. And over the last couple of months, it’s become clear where all that “saved” money is going: directly into the pockets of the supervisors and managers.
We’re no strangers to this company’s cold calculations, and how little they care for anyone but the precious few who belong to the Salaried Class. They use this state’s “right to work” status to do whatever the hell they want and get away with it. For example: they fired an epileptic for being “unreliable.” They fired another woman for trying to get our insurance to cover infertility treatments. The company has been sued many times, but, unbelievably, has yet to lose a case.
And that’s not the half of it. But for now, let’s just say that management and HR routinely cover each others’ asses, so they can do whatever they want and get away with it. It’s a comfy little clique they’ve made for themselves, and apparently all that matters is their special little group.
So while most of us have spent the last year trying to keep up with inflation, our bills and the crazy cost of gasoline, supervisors and managers have continued receiving hefty monthly bonuses. The rest of us get to enter a raffle for a chance to win a $25 “in-house” gift card for all our hard work–just enough to get one piece of merchandise. Gee, thanks. Some of my coworkers could barely cover monthly expenses in December, much less afford Christmas gifts. At least a lucky few of us had gift cards, though. Now we can take home the same crap we push out the door all day. It’s nice to know they care.
But here comes the real smack in the face: just before the holidays, the supervisors and managers had themselves a big party at work. They tried to keep it secret by calling it a “closed-door, high-level meeting,” but we “nobodys” have eyes and ears everywhere and it wasn’t long before we learned the truth. It was a catered lunch, at which the holiday bonuses were handed out. These were thousand-dollar checks, mind you, and separate from their usual monthly bonuses. On top of that, they were given not-inexpensive gifts like fancy heated car-seat covers and custom-embroidered coats (which they now wear around like status symbols). And after that, they had an “everybody wins” raffle in which MORE monetary prizes were handed out, ranging from $500 to $2000.
Must be nice. Tell us again…why can’t we have annual cost-of-living raises? Oh, right: because the company’s strapped for cash, and reinstating our raises might drive down the stock value. Can’t have that, now, can we?
A week after the higher-ups had their big shindig, management announced that this year’s annual holiday party was cancelled…”Because the company can’t afford it.” Gee, I wonder where all that money went?
So here I sit, at home, with six bucks to my name and no way to afford both a Chef Boyardee dinner for my daughter and the commute to the job that used to support me. I’m left to wonder how I’m going to afford gasoline, power, the car payment and and the house payment while they can somehow afford new motorcycles and sportscars.
It’s the same old “Austerity for thee, but not for me” mentality. It’s twisted, and it’s wrong.
I see in this the 99% vs the 1% in microcosm: those who labor the least literally get almost everything there is to be had, while those who actually DO THE WORK get exactly jack-shit. Management can operate with complete impunity, doing whatever the hell they want with no consequences, while the rest of us work in fear that the next cut might include our jobs. There are two sets of rules: one for them, and another for the rest of us (salaried people, for example, can show up late and leave early without penalty). There is no place for those who get ill, because they simply “cost too much.” The working class is worthy only of mockery, because if they were “somebody,” they’d already be part of the Salaried Class. In this environment, $25 gift cards are metaphorical slaps in the face.
We need something we can LIVE ON. I need a wage that allows me, at the very least, to afford to go to work! Many of us, myself included, are looking for another job; some fortunate ones have left already, but I don’t need to describe how tough it is to find something else. And there’s no guarantee that we won’t find the same kind of bullshit still going on, wherever we might end up.
No…it seems that we blue-collar Joes and Jills won’t ever get what we need–what’s FAIR–until those who mind the coffers–in both business and government–stop enriching themselves at the expense of everyone else.
This blog originally appeared in Daily Kos Labor on February 7, 2012. Reprinted with permission.
The latest examples appear two months after the National Employment Law Project (NELP) released a reportdetailing similarly exclusionary job postings this spring. Since then, federal legislation has been introduced that would ban hiring practices, including job ads, that discriminate against unemployed workers by excluding them from consideration for employment opportunities. As these harmful practices have attracted growing attention, one leading job site — Indeed.com — recently announced it would no longer post such exclusionary ads.
That’s even as the movement to ban such discrimination gains steam. Wednesday, Representatives Rosa DeLauro and Hank Johnson and Senator Richard Blumenthal, sponsors of House and Senate bills prohibiting discrimination against unemployed jobseekers, held a press conference on the issue, at which:
Congress today received a petition with 250,000 names in support of ending discrimination against the unemployed, said David Elliot, a spokesman with the Washington-based USAction, a federation of 22 state affiliates that advocates for human- service programs and support for public education.
Already, Rep. Louie Gohmert (R-Texas) took to the House floor to speak out against the idea as just creating another “protected class.”
Johnson said much of Republican objection is politically motivated.
“[Some Republicans] don’t want to see the president be successful.” He added the American people “are looking past the cynicism and they’re looking at their pocket books. … They want some action.”
There’s no question about the political motivations of Republicans—the question is if they’ll be willing to go to the mat against a bill simply saying that employers can’t flatly rule out hiring unemployed people, a type of discrimination a poll has shown people want banned by a two-to-one margin.
This post originally appeared at Daily Kos Labor on September 21, 2011. Reprinted with permission.
Disclaimer: The views of this post reflect those of the author and not of Workplace Fairness.
About the Author: Laura Clawson is labor editor at Daily Kos. She has a PhD in sociology from Princeton University and has taught at Dartmouth College. From 2008 to 2011, she was senior writer at Working America, the community affiliate of the AFL-CIO.
As the nation’s unemployment rate remains at record levels, it’s no surprise that employment agencies have become a popular destination for those in search of work. Immigrants, especially new arrivals, have increasingly turned to these places with the hope of building a better life.
But recent reports across the country shows a troubled industry, one that routinely takes advantage of workers despite government efforts to enforce labor regulations. Many immigrants are often bilked out of money through bogus placement fees. Those who are placed into jobs – if at all – find themselves in deplorable working conditions, adding to the prevalence of low-wage jobs.
Job-seekers typically pay a fee to an agency in order to find employment and utilize other services such as resume writing. Employment agencies vary from providing staffing services for executives and white-collar workers, but immigrant-oriented offices are typically centered in low-income neighborhoods, often catering to those with limited English skills. Others draw in workers from abroad, charging high fees that leave many new immigrants in severe debt in settings that were far from what was originally promised.
The two accounts were recently profiled inseparatestoriesby the New York Times, each providing immigrant accounts of exploitation.
In Houston, 50 welders from Vietnam arrived in the United States only to find themselves in what they called “indentured servitude.” After the welders were originally recruited by an agency sanctioned by the Vietnam government, they took out loans to pay for the $10,000 agency fee to be placed into an American company.
When they arrived in the U.S., the workers were overcharged for rent on substandard apartments, contained by the company at their homes with threats of deportation, and were laid off at least a year before their contract expired, leaving many unable to pay off their debts. The workers settled a lawsuit out of court with the two American companies, but have yet to see a penny of the $60 million in damages.
In New York, these types of agencies have grown since the recession. The official tally is 350, but labor advocates say that there more than 1,000, according to the New York Times. Agencies are not allowed to provide job guarantees to workers, or refer jobs that pay below minimum wage, according to the city’s labor law.
Consumers frequently complain that agencies require non-English speakers to sign contracts in English, or demand upfront payments, which in most cases are illegal. City officials say they have encountered agencies that plotted with businesses to dupe consumers and steal their money, and cases of women being sent for work to strip clubs, rather than to restaurants as they thought.
Others find that the working conditions are too harsh, filled with 12 to 15 hour days at places like restaurants that sometimes do not even pay. As reported last year in the Spanish-language newspaper El Diario, many workers find themselves in an endless cycle, returning to the job placement agency after an unsatisfactory job, only to pay more fees to find employment elsewhere.
New York City cracked down several years ago and has recovered more than $300,000 from job agencies. But it has been difficult enforce the rules. Many of the immigrants are unaware of the legal rights, and coupled with language barriers, find it difficult to report wrong-doing to the authorities.
Some measures are being considered to curb the exploitation of transnational labor and the most vulnerable folks in immigrant communities. Increasing fines and making employee rights more visible at agencies are some ideas being circulated. But many of these agencies have proven too elusive, with some taking fees and disappearing. As a result, the nature of the industry makes it difficult to enforce.
But another key idea is that of consent. Many of these workers have been misled on potential job prospects and placed into work that wasn’t originally promised. Giving employees more rights to freely choose instead of unilateral placement by the agency would provide more flexibility in determining one’s own livelihood.
This article originally appeared on the Working In These Times blog on May 18, 2011. Reprinted with permission.
About the Author: Akito Yoshikane is a freelance writer and reporter for Kyodo News. He regularly contributes to the In These Times blog covering labor and workplace issues. He lives in New York City.
Employees will march into Reliable Staffing office to demand billing records, highlight mistreatment
When Reginald Burnett started working in a warehouse unloading trucks of goods destined for Wal-Mart, he said he was told he’d make at least $10 an hour. But he soon realized that figure hinged on unloading a truck in three hours. Depending on how many things are in a truck and how heavy and unwieldy they are, unloading a truck can take two days.
Burnett, 32, soon found himself working 12-hour days, seven days a week, and taking home only $90-100 a day – less than $9 an hour, not counting copious overtime to which he should have been entitled under the law. He said he wasn’t the only one who realized his Friday paycheck from the agency Reliable Staffing “didn’t add up.”
Burnett is among workers who think they are victims of wage theft by the New Lenox, Ill., staffing agency. Reliable Staffing workers have contacted the group Warehouse Workers for Justice, which is trying to shed light on alleged wage and hour violations, unhealthy working conditions, extensive use of temporary labor and other unsettling aspects of the massive warehouse industry in Chicago’s southwest suburbs.
Today Burnett and other former or current Reliable Staffing workers and their supporters are marching into the company demanding copies of their pay stubs and billing records, to highlight what many workers say is erratic, deceptive or non-existent recordkeeping and transparency by the agencies that hire workers to staff warehouses for major multinational companies like Wal-Mart.
“It was everything that goes to Wal-Mart, from BBQ grills to tables to different types of book folders,” said Burnett. “A lot of it was heavy.”
George Johnson is among the former Reliable Staffing workers who never got straight answers about how much he was being paid. He said he was promised $9.25 an hour, but he said he sometimes got as little as $15 for a full eight-hour day during his three months at the company, paid piecemeal for unloading trucks, splitting pay with one or two other workers unloading the same truck. He said he was also told to report to the warehouse at 7 a.m., but wouldn’t start working until 8:30 a.m. or 9 a.m., without being paid for the waiting time.
“It was all screwed up,” said Johnson, 41, who struggled to support eight kids on the meager wages. “You spent all these hours working, unloading these big trucks, one after another after another. For nothing.”
63 percent of warehouse workers were temps and that majority were earning below the poverty line…and one in four warehouse workers needed public assistance and many workers needed a second job in order to make ends meet.
Both Johnson and Burnett were temporary workers, and Johnson since then worked another temporary warehouse job. Burnett has been collecting unemployment since being laid off after about seven months, when his contract ended.
“When they want that order, they’ll say ‘that truck is hot,’” he said. “There are people waiting on the order, they need to complete it right away to get their money, so they make you work harder. But they don’t share the money with you. They are making big money, I kid you not.”
Warehouse Workers for Justice organizers have been meeting with Illinois state legislators to introduce legislation that would limit the number of temporary jobs in the industry, among other workers’ rights protections.
“People deserve permanent jobs,” said Tory Moore, a WWJ organizer who worked at the same warehouse for six years as a temp.
Burnett said he hopes more workers speak up about wage theft and other problems. He said many of the people working for Reliable Staffing have criminal records, something he thinks the company banked on.
“The job is so God-damned hard, most people they hire have felonies, they know most people won’t hire someone with a felony, so they know he’ll put up with it because he’ll have a hard time doing anything else,” Burnett said.
They are trying to prove to society that they’re capable of handling this kind of thing. Making their own money feels good, especially someone who came from the street, who never had anything in their lifetime. Now they don’t have to look over their shoulder, over their back, look out for the police.
They’re going to hold on to that job as long as they can. The people know they’re being cheated, but they don’t want to speak up because if you speak up, you lose your job.
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.
Good evening. Thank you, John. I will never be able to express how much I owe you and how much the American labor movement owes you. The Institute of Politics is fortunate to have you as a fellow this semester. And let me add my thanks to the Institute of Politics and Bill Purcell for inviting me to be here with you tonight.
I am going to talk tonight about anger—and specifically the anger of working people. I want to explain why working people are right to be mad about what has happened to our economy and our country, and then I want to talk about why there is a difference between anger and hatred. There are forces in our country that are working hard to convert justifiable anger about an economy that only seems to work for a few of us into racist and homophobic hate and violence directed at our President and heroes like Congressman John Lewis. Most of all, those forces of hate seek to divide working people – to turn our anger against each other.
So I also want to talk to you tonight about what I believe is the only way to fight the forces of hatred—with a strong progressive tradition that includes working people in action, organizing unions and organizing to elect public officials committed to bold action to address economic suffering. That progressive tradition has drawn its strength from an alliance of the poor and the middle class—everyone who works for a living.
But the alliance between working people and public minded intellectuals is also crucial—it is all about standing up to entrenched economic power and the complacency of the affluent. It’s an alliance that depends on intellectuals being critics, and not the servants, of economic privilege.
I am here tonight at the Kennedy School of Government to say that if you care about defending our country against the apostles of hate, you need to be part of the fight to rebuild a sustainable, high wage economy built on good jobs – the kind of economy that can only exist when working men and women have a real voice on the job.
Our republic must offer working people something other than the dead-end choice between the failed agenda of greed and the voices of hate and division and violence. Public intellectuals have a responsibility to offer a better way.
The stakes could not be higher. Mass unemployment and growing inequality threaten our democracy. We need to act—and act boldly—to strike at the roots of working people’s anger and shut down the forces of hatred and racism.
We have to begin the conversation by talking about jobs—the 11 million missing jobs behind our unemployment rate of 9.7 percent.
Now, you may think to yourself, that is so retro. Jobs are so twentieth century. Sweat is for gyms, not workplaces.
For a generation, our intellectual culture has suggested that in the new global age, work is something someone else does. Someone we never met far away in an export processing zone will make our clothes, immigrants with no rights in our political process or workplaces will cook our food and clean our clothes.
And for the lucky top 10 percent of our society, that has been the reality of globalization—everything got cheaper and easier.
But for the rest of the country, economic reality has been something entirely different. It has meant trying to hold on to a good job in a grim game of musical chairs where every time the music stopped, there were fewer good jobs and more people trying to get and keep one. Over the last decade, we lost more than 5 million manufacturing jobs—a million of them professional and design jobs. We lost 20 percent of our aerospace manufacturing jobs. We’re losing high-tech jobs—the jobs we were supposed to keep.
For most of us, economic reality has meant trying to pay for the ever-more-expensive education needed to pursue a good job—the cost of a college degree has gone up more than 24 percent since 2000 while average wages and salaries have increased less than one percent. It has meant trying to pay for exorbitant health care as employer coverage went away or got hollowed out. It has meant trying to eke out a decent retirement even as the private sector shed real pensions and long-term investment returns evaporated. Meanwhile, Wall Street middlemen raked in the bonuses.
And that was the reality for most Americans before the Great Recession began in 2007. Since then, we have lost 8 million jobs when the economy needed to add nearly three million just to keep up with population growth. That’s 11 million missing jobs.
We used the public’s money to bail out the major banks, only to see those same banks return to the behavior that got us here in the first place—aggressive risk taking in securities and derivatives markets, and handing out gigantic bonuses. Most galling of all—they used the funds we gave them — courtesy of TARP and endless cheap credit from the Federal Reserve — to fight even the most modest, common sense reforms of our financial system.
President Obama’s economic recovery program has done a lot of good for working people—creating or saving more than 2 million jobs. But the reality is that 2 million jobs is just 18 percent of the hole in our labor market.
The jobs hole – and the decades-long stagnation in real wages — are the source of the anger that echoes across our political landscape. People are incensed by the government’s inability to halt massive job loss and declining living standards, on the one hand, and the comparative ease with which government led by both parties has made the world safe again for JP Morgan, Goldman Sachs and Citigroup, on the other hand.
Rescuing the big banks hasn’t done much for Main Street. The very same financial institutions that got bailed out have not only cut way back on lending to business, they have never stopped foreclosing on American families’ homes.
The fact is that for a generation we have built our economy on a lie—that we can have a low-wage, high-consumption society and paper over the contradiction with cheap credit funded by our foreign trading partners and financial sector profits made by taking a cut of the flow of cheap credit.
So now a lot of Americans are angry. And we should be angry. And just as we have seen throughout history, there are plenty of purveyors of hate and division looking to profit from our hurt and our anger.
I am a student of history, and now is the time to remember our history as a nation. Remember that when President Franklin Roosevelt said, “We have nothing to fear but fear itself,” other voices were on the radio, voices saying that what we really needed to fear was each other – voices preaching anti-Semitism and Nazi-style racial hatred.
Remember that when President John F. Kennedy stepped off the plane in Dallas on November 22, 1963, radio voices were calling for violence against the President of the United States. And the violence came—and took John and Robert Kennedy and Martin Luther King and Medgar Evers and so many others.
But in the United States, we chose to turn away from the voices of hatred at those critical moments in the twentieth century. In much of Europe, racial hatred and political violence prevailed in response to the mass unemployment of the Great Depression. And in the end, we had to rescue those countries from fascism– from the horrible consequences of the failure of their societies to speak to the pain and anger bred by mass unemployment.
Why did our democracy endure through the Great Depression? Because working people discovered it was possible to elect leaders who would fight for them and not for the financial barons who had brought on the catastrophe. Because our politics offered a real choice besides greed and hatred. Because our leaders inspired the confidence to reject hate and charted a path to higher ground through broadly shared prosperity.
This is a similar moment. Our politics have been dominated by greed and the forces of money for a generation. Now, amid the wreckage that came from that experiment, we hear the voices of hatred, of racism and homophobia.
At this moment of economic pain and anger, political intellectuals face a great choice—whether to be servants or critics of economic privilege. And I think this is an important point to make here at Harvard. The economic elites at JP Morgan Chase, Goldman Sachs and the other big Wall Street banks are happy to hire intellectual servants wherever they can find them. But the stronger the alliance between intellectuals and economic elites, the more the forces of hatred—of anti-intellectualism—will grow. If you want to fight the forces of hatred, you have to help empower the forces of righteous anger.
And at this moment, the labor movement is working to give voice to the justified anger of the American people. We need help. We need public intellectuals who will help design the policies that will replace the bubble economy with a real, sustainable economy that works for all of us.
Working people want an American economy that creates good jobs, where wealth is fairly shared, and where the economic life of our nation is about solving big problems like the threat of climate change rather than creating big problems like the foreclosure crisis. We know that growing inequality undermines our ability to grow as a nation by squandering the talents and the contributions of our people and consigning entire communities to stagnation and failure. But despite our best efforts, we have endured a generation of stagnant wages and collapsing benefits—a generation where the labor movement has been much more about defense than about offense.
We in the labor movement have to challenge ourselves to make our institutions into a voice for all working people. And we need to begin with jobs. Eleven million missing jobs is not tolerable. That’s why we are fighting for the AFL-CIO’s five point jobs program—extending unemployment benefits, including COBRA health benefits for unemployed workers; expanding federal infrastructure and green jobs investments; dramatically increasing federal aid to state and local governments facing fiscal disaster; creating jobs directly, especially in distressed communities; and finally, lending TARP money to small and medium sized businesses that can’t get credit because of the financial crisis.
As we meet tonight, organizers working for the AFL-CIO’s 3 million-member community affiliate Working America are knocking on doors across our country talking jobs. We are organizing support for George Miller’s Local Jobs for America Act that would target $100 billion in job creation dollars toward our country’s hardest hit communities—to keep teachers in the classroom and first responders on the job, and to create new jobs where Wall Street destroyed them. We are organizing support for financial reform and accountability for Wall Street. We are working to counter the Glenn Beck effect and turn anger into action for real change.
But we are not just talking about how to create jobs, we are talking about how to pay for them. Wall Street should pay to clean up the mess they made, and we are supporting four ways for the big banks to pay—President Obama’s bank tax, a special tax on bank bonuses, closing the carried interest tax loophole for hedge funds and private equity, and most important, a financial speculation tax levied on all financial transactions—including derivatives—that would raise over $150 billion a year, according to the Congressional Budget Office. The financial speculation tax would have negligible impact on long-term investors, but would discourage the short termism in the capital markets that led to so much destruction over the last decade.
When it comes to creating jobs, some in Washington say: Go slow—take half steps, don’t spend real money. Those voices are harming millions of unemployed Americans and their families — and they are jeopardizing our economic recovery. It is responsible to have a plan for paying for job creation over time. But it is bad economics and suicidal politics not to aggressively address the job crisis at a time of stubbornly high unemployment. In fact, budget deficits over the medium and long term will be worse if we allow the economy to slide into a long job stagnation — unemployed workers don’t pay taxes and they don’t go shopping; businesses without customers don’t hire workers, they don’t invest and they also don’t pay taxes.
But we must do much more to restore broadly shared prosperity.
We must take action to restore workers’ voices. The systematic silencing of America’s workers by denying their freedom to form unions is at the heart of the disappearance of good jobs in America. We must pass the Employee Free Choice Act so that workers can have the chance to turn bad jobs into good jobs, and so we can reduce the inequality which is undermining our country’s prospects for stable economic growth.
We must have an agenda for restoring American manufacturing—a combination of fair trade and currency policies, worker training, infrastructure investment and regional development policies targeted to help economically distressed areas. We cannot be a prosperous middle class society in a dynamic global economy without a healthy manufacturing sector.
We must have an agenda to address the daily challenges workers face on the job – to ensure safe and healthy workplaces and family-friendly work rules.
And we need comprehensive reform of our immigration policy based on ending exploitation and securing fairness, working for an America where there are no second class workers.
Each of these initiatives should be rooted in a crucial alliance of the middle class and the poor—the majority of the American people. And those of us in the labor movement know that we can only achieve these great things if we work together with community partners who share our goals, and with government leaders who share our vision.
Government that acted in the interests of the majority of Americans has produced our greatest achievements. The New Deal. The Great Society and the Civil Rights movement — Social Security, Medicare, the minimum wage and the forty-hour work week, and the Voting Rights Act. This is what made the United States a beacon of hope in a confused and divided world. In the end, I believe the health care bill signed into law last month is an achievement on this order, one we can continue to improve upon to secure health care for all.
But too many thought leaders have become the servants of a different kind of politics—a politics that sees middle-class Americans as overpaid and underworked. That sees Social Security as a problem rather than the only piece of our retirement system that actually works. A mentality that feels sorry for homeless people, but fails to see the connections between downsizing, outsourcing, inequality and homelessness. A mentality that sees mass unemployment as something that will take care of itself, eventually.
We need to return to a different vision.
President Obama said in his inaugural address, “The state of the economy calls for action, bold and swift, and we will act — not only to create new jobs, but to lay a new foundation for growth.” Now is the time to make good on these words – for Congress, for President Obama and for the American people.
These are big challenges. But it is long past time to take them on. If you are worried about the anger in our country, if you don’t want the forces of hatred to grow, be a part of the fight for economic justice and a new economic foundation for America. Be a critic of power and privilege, not its servant.
Be the source of the ideas that can rebuild our economy and restore confidence in government. As students, as teachers, as workers—all of us can play a role in this great effort. Whether here within the university, at think tanks, in the government, in the press, or even working with us in the labor movement, working people need the help of engaged policy intellectuals if we are together going to build an economy that works for all.
Think about the great promise of America and the great legacy we have inherited. Our wealth as a nation and our energy as a people can deliver, in the words of my predecessor Samuel Gompers, “more schoolhouses and less jails; more books and less arsenals; more learning and less vice; more leisure and less greed; more justice and less revenge; in fact, more of the opportunities to cultivate our better natures.”
That is the American future the labor movement is working for. Let me be clear: There is no excuse for racism and hatred. All Americans need to unite against it. The labor movement must be a powerful voice against it. But you cannot fight hatred with greed. Working people are angry—and we are right to be angry at the betrayal of our economic future. Help us turn that anger into the energy to win a better country and a better world.
*This post originally appeared on the AFL-CIO website on April 7, 2010. Reprinted with permission.
About the Author: Richard L. Trumka was elected President of the AFL-CIO by acclamation at the Federation’s 26th convention in Pittsburgh, Pa. His election, following 15 years of service as the AFL-CIO’s Secretary Treasurer, capped Trumka’s rise to leadership of the nation’s largest labor federation from humble beginnings in the small coal mining communities of southwest Pennsylvania.
*This article originally appeared in CEPR on March 1, 2010. Reprinted with permission.
The housing bubble and subsequent crash were the result of extreme incompetence on the part of the country’s top economic policymakers. Somehow these people could not see, or did not care about, the dangers of an $8 trillion housing bubble.
Unfortunately, economic policymaking is not like most jobs where workers get fired when they make serious mistakes. In economics, they just keep getting promoted. Therefore, the people who sank the economy are for the most part the same group of people still designing policy today. Now this group of incompetent economists is telling the rest of us that we are going to have to endure five more years of high unemployment.
However, the rest of the country should not be forced to suffer even more just because those determining economic policy cannot do their jobs. We know how to get the unemployment rate down. Keynes taught us more than 70 years ago that we just have to spend money to eliminate mass unemployment. People work for money, if the government spends, people will work. It’s pretty straightforward.
But, the deficit hawks seems to have largely closed this route. Members of Congress somehow think that they are helping our children by putting their parents out of work.
Fortunately, we can even find a way to create jobs that can keep the deficit hawks happy. It’s called “work-sharing.” The basic point is so simple that even an economist can understand it.
Instead of paying workers to be unemployed – in the form of unemployment benefits – we pay workers to stay employed, but work fewer hours. In effect, to avoid one worker from being laid off, several workers put in somewhat less time on the job and take a small cut in pay. Germany and the Netherlands have used this path to keep their unemployment rates from rising even though they have experienced steeper downturns than the United States.
The way the system works in Germany, a firm will cut back the hours of its workers by 20 percent. The government then replaces 60 percent of the lost pay (12 percent of total pay). The firm is expected to kick in 20 percent of the lost pay (4 percent of total pay) and the worker ends up taking home 4 percent less pay.
In this scenario the worker ends up working 20 percent fewer hours for 4 percent less pay. This can mean, for example, that the worker ends up working a four-day week instead of a five-day week. Given the savings on work-related expenses, like transportation and childcare, most workers would almost certainly end up better off under a work-sharing arrangement than they are now.
While the economy is past its period of rapid job loss, a huge number of workers still lose their jobs each month through the economy’s normal job churning. Each month, companies lay off or fire close to 2 million workers. These job losses are largely offset by hiring by other firms, so that the net change in jobs has been a small negative in recent months. However, if we could just reduce the rate of job loss by 10 percent, then it would be equivalent to creating an additional 200,000 jobs a month or 2.4 million jobs a year. This would get us back to full employment in two years, rather than five or six, as is currently projected.
There are other potential benefits from work sharing. The reduction in work time could give companies an opportunity to adopt more family friendly work practices. For example, they could adopt a policy of paid family leave or paid sick days on a trial basis during the downturn.
There also would be environmental benefits to reducing work hours. Suppose everyone worked a four-day week so that we reduced the number of commutes by 20 percent. This would substantially reduce the amount of greenhouse gas emissions associated with getting to and from work. The fact that Europeans tend to work many fewer hours than we do is undoubtedly one of the main reasons that their per person carbon emissions are about half of the U.S. level.
There are already 17 states that have work-sharing programs in place. There are bills in both the House and Senate that would strengthen these programs and give support to other states to set up their own programs. If Congress is serious about addressing unemployment, it will act on these bills.
About the Author: Dean Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of False Profits: Recovering from the Bubble Economy. He also has a blog on the American Prospect, “Beat the Press,” where he discusses the media’s coverage of economic issues.
The index of total hours worked is below the November 1997 level.
The unemployment rate fell to 9.7 percent in January, driven by a 0.4 percentage-point drop in the unemployment rate for women to 8.4 percent. The unemployment rate for men fell 0.2 percentage points to 10.8 percent. This drop came in spite of a reported loss of 20,000 jobs in the establishment survey.
The improved employment picture was primarily a story for adult white women. Their unemployment rate fell by 0.6 percentage points to 6.8 percent, while their employment rate (EPOP) rose by 0.6 percentage points to 56.1 percent. The unemployment rate for black women rose slightly to 13.3 percent, although their EPOP also rose 0.2 percentage points to 54.7 percent. It is striking that the EPOP for white women is now 1.4 percentage points higher than for black women. Until last summer it had always been lower, although the gap had been narrowing over the last three decades.
For blacks overall, January was a bad month. The unemployment rate rose to 16.5 percent, the highest of the downturn. The unemployment rate for black men rose a full percentage point to 17.6 percent, also a high for the downturn.
By education group, the big winners were people with some college, who saw 1.2 percentage-point increase in their EPOP. There was little change in the EPOPs for other groups. Workers over age 55 continued to fare best, accounting for 178,000 of the 541,000 increase in employment. Women over age 55 accounted for 140,000 of these jobs.
In addition to the gains in employment, the household survey also showed a sharp fall in the number of people involuntarily working part-time, from 9,055,000 to 8,193,000. The U-6 measure of labor market slack correspondingly fell from 17.3 percent to 16.5 percent. It is also worth noting that the percentage of the unemployed who have voluntarily quit their job has edged up to 6.1 percent. This is still very low, but somewhat better than the 5.6 percent reported last summer, suggesting somewhat greater confidence in the labor market.
The establishment data look somewhat less positive. Not only do the data continue to show job loss, but the job loss over the last three months (Oct-Dec) was revised upward by 102,000, giving an average job loss of 103,000 per month over this period. Without 33,000 temporary census jobs, the establishment survey would have shown a loss of 53,000 jobs for January.
However, even in the establishment survey there are some positive signs. Manufacturing employment increased by 11,000, the first gain since January of 2007. This was fully explained by a 22,700 rise in auto employment. While this may not be repeated, it is likely that manufacturing employment has finally bottomed out.
Retail trade added 42,100 jobs, although this may be a seasonal anomaly with fewer people than normal hired in the holiday season and therefore fewer layoffs in January. Employment services showed another big increase, adding 52,000 jobs in January. This is consistent with a picture of employees getting ready to add permanent employees. Hours worked also increased, with the index of aggregate hours rising from 97.9 to 98.2.
However, there were also many negative aspects to the establishment data. Construction lost another 75,000 jobs, the vast majority in non-residential construction. State and local governments shed 41,000 jobs. The leisure and hospitality sector shed 14,000 jobs. Even health care seems to be weakening as a bastion of employment growth, adding just 14,500 jobs in January.
The benchmark revisions show the downturn to be even deeper than previously believed. The revised data show a loss of 8,424,000 from the peak in December of 2007. Over the decade from January 2000 to January 2010, the economy actually lost 1,254,000 jobs. The economy lost 2,100,000 construction jobs (27.2 percent) since the peak in August of 2006 and 2,467,000 manufacturing jobs since the decline began in January 2007. The index of hours worked is below the November 1997 level.
On the whole, there is some positive news in this report, with the household survey showing a much brighter picture than the establishment survey. It is possible that the birth/death data could now be understating job growth.
*This article originally appeared in CEPR on February 5, 2009.
About the Author: Dean Baker is the Co-director of the Center for Economic and Policy Research. CEPR’s Jobs Byte is published each month upon release of the Bureau of Labor Statistics’ employment report. For more information or to subscribe by fax or email contact CEPR at 202-293-5380 ext. 102, or chinku [at] cepr [dot] net.
With heavy defections from Blue Dog Democrats, the House of Representatives still narrowly passed Wednesday evening 217 to 212 a $154 billion jobs package. It included funds for states to retain front-line workers, aid to the unemployed and transportation projects.
But a jobs bill has yet to be voted on in the Senate, where it’s likely to be viewed more skeptically and reduced in scope in the absence of a major grass-roots campaign. Political activism becomes even more urgent, because a combination of continuing high unemployment and the transitioning of people in and out of jobs could mean that as many as a third of the workforce could be unemployed or undermployed in 2010, according to Lawrence Mishel, director of the Economic Policy Institute.
That’s why a potentially powerful 60-group liberal coalition, Jobs For America Now!, announced earlier Wednesday, becomes especially important. Its leaders are proposing a far more ambitious $400 billion proposal, based in part on plans put forward in the last several weeks by the AFL-CIO and other progressive and civil-rights organizations.
(The full story of the progressive drive for jobs creation can be read here at Truthout.org.)
There’s no doubt that they face an uphill battle to get ambitious jobs legislation through Congress. There was, after all, that close vote yesterday in the House, right-wing propaganda about the failings of the first $787 billion stimulus (it actually saved or created up to 1.6 million jobs), and the spread of an aggressive “deficit hawk” mentality to conservative Democrats.
Even so, Thea Lee, the deputy chief of staff of the AFL-CIO, outlined the themes unifying the organizations: “Across the country, working Americans are calling for urgent action on the jobs crisis, and this action must be on a scale to match the crisis. We must also focus on fundamentally transforming our economy so we never face this type of crisis again — reforming our labor laws, our trade policy, and our financial system to restore needed balance.”
During the debate over the jobs bill, House Speaker Nancy Pelosi (D-CA) declared on the House floor, “This legislation brings jobs to Main Street by increasing credit for small businesses, rebuilding the infrastructure of America, and keeping police and fireman and teachers on the job. As we create jobs for Americans, we are doing so in a fiscally responsible way. These investments are fully paid for by redirecting TARP funds from Wall Street to Main Street.”
With every single Republican voting no, she defiantly pointed out how far the American economy had come under the Obama administration even as joblessness is still rampant. “There were 740,000 jobs lost in the first month of this year compared to 11,000 last month. We’re on the road to recovery…We’re creating jobs for Main Street, not just wealth for Wall Street,” she said. “This legislation creates jobs, helps meet the needs of those who are unemployed, and puts us America back on a path to prosperity.”
Action can’t come too soon, and our obstructionist legislators would do well to listen to the plight of the unemployed as powerfully described in James McMurtry’s song, “We Can’t Make It Here.” Even though it was written during the Bush era, it’s all too applicable now:
The groups and leaders featured in the press conference call Wednesday before the vote were almost a Who’s Who of American Liberalism. They included the Campaign for America ’s Future; Anna Burger, the chair of Change to Win;, the veteran organizer Alan Charney of the grass-roots advocacy group,US Action, and the coalition’s interim director; Benjamin Todd Jealous, the NAACP President;and Wider Opportunities for Women. The importance of the coalition goes beyond the specifics of their proposals to their commitment to provide grass-roots muscle in all 50 states to push for jobs legislation in the tough struggle ahead, especially in the Senate. And that’s what’s been missing before on this issue: united activism around jobs which could, potentially, have more diverse grass-roots support in 2010 than health care reform did this year.
The importance of the new coalition was underscored by an aide to Rep. Bobby Rush (D-Ill), who co-chairs the bipartisan Jobs Now! Congerssional caucus. The aide told Truthout: “These are the A-List groups. If that coalition steps up to the plate, they’ll bring plenty of resource capacity: polling, lobbying, putting pressure on the usual suspects.” Right now, though, the staffer observed, “Clearly everyone’s focused on pushing health care across the finish line, and that’s not even done. After that, everyone will be talking about jobs, jobs, jobs — at least until November.”
So, despite the narrow vote on Wednesday, there’s some realistic hope that a combination of continuing unemployment, grass-roots organizing and political necessity could push through meaningful jobs legislation — and the Pelosi-backed bill is considered a very good start.
After Wednesday’s vote, union leader Anna Burger declared:
Our jobs crisis cannot be solved by one bill alone. But today the House demonstrated the bold and swift leadership the American people demand. It’s time to provide relief to the millions of workers who get up each morning and scour the help wanted ads in the hopes of finding a good job that can support a family. Congress today made an essential first step to invest in programs to immediately put people back to work…
But our work is far from over. Our leaders must continue to work non-stop to pass a comprehensive jobs agenda that puts millions of Americans back to work today and makes strategic investments to create the jobs that Americans will need in the future.
The biggest differences between the House-passed measure and the progressive-backed proposals are the sheer amount of spending and the absence in the current House bill of public sector job creation targeting hard-hit communities. As described by the coalition, this jobs-creation provision — which could create one million new jobs with $40 billion in federal funding, according to Rep. Keith Ellison (D–Minn.) — is a vital one. The group’s call to action describes its importance:
We can directly create jobs that put people to work helping communities meet pressing needs, including in distressed communities facing severe unemployment. These initiatives must be designed so they maintain existing wage and benefit standards and do not displace existing jobs or simply exchange one group of unemployed workers for another.
The urgent call to action is often at odds, though, with the pragmatic, even cynical, calculations of conservaDems who are worried that big deficit spending could be a potent Republican issue in their home states that trumps joblessness.
Compare the different perspectives. First, here’s what’s at stake for American workers, as described by the Jobs Now! coalition:
An Urgent Call for Action to Stem the U.S. Jobs Crisis
The U.S. unemployment rate exceeded 10% in October for the first time in a quarter century. Over 15 million Americans are able and willing to work but cannot find a job. More than one out of every three unemployed workers has been out of a job for more than six months. The situation facing African American and Latino workers is even bleaker, with unemployment at 15.6% and 12.7%, respectively.
These grim statistics don’t capture the full extent of the hardship. There are another 9 million people working part time because they cannot find full-time work. Millions of others have given up looking for a job, and so aren’t counted in the official unemployment figures. Altogether, over 17% of the labor force is underemployed–more than 26 million Americans–including one in four minority workers. Last, given individuals moving in and out of jobs, we can expect a third of the workforce, and 40% of workers of color, to be unemployed or underemployed at some point over the next year. (emphasis added.)
Despite an effective and bold recovery package we are still facing a prolonged period of high unemployment. Two years from now, absent further action, we are likely to have unemployment at 8% or more, a higher rate than that attained even at the worst point of the last two downturns.
Joblessness on this scale creates enormous social and economic problems–and denies millions of families the ability to meet even their most basic needs. .
Then take a look at the political machinations among Democrats who feel themselves to be vulnerable politically, along with some retiring members who feel they can vote their conscience on behalf of a jobs package. Here’s how The Hill reported their current thinking:
The close votes reflect the growing unease among centrist Democrats that the deficit spending that Congress has undertaken to right the economy is becoming a potent campaign issue.
“We’ve got to indicate we’re serious about the deficit,” said Rep. Gerry Connolly (D-Va.), who voted “no” and represents a Republican-leaning district with low unemployment. “We didn’t cause the deficit, but we have to address it.”
Rep. Brian Baird (D-Wash.), who is retiring from Congress, changed his vote to put Democrats over the top. That signals a potent variable in vote counting next year — retirees who no longer need to respond to traditional political pressures…
Political analysts are closely watching for more centrist retirements. Those members will have no fear of losing committee assignments and can’t be won over with promises of campaign help or other inducements…
But Democrats facing tough re-election fights found themselves trying to determine if voters are angrier about 10 percent unemployment or trillions in deficits.
“My staff is looking at it,” said a newly elected Democratic member from a conservative district as the clock ticked down. “If I can’t make a good case that a lot of money is coming back to my district, I can’t support it. I wish we had more time.”
He voted “no.”
Compare that political calculation with the fear and anxiety gripping America’s unemployed, with half of them reporting depression, panic and heavy borrowing from friends. The New York Times reported this week:
Poll Reveals Trauma of Joblessness in U.S.
More than half of the nation’s unemployed workers have borrowed money from friends or relatives since losing their jobs. An equal number have cut back on doctor visits or medical treatments because they are out of work.
Almost half have suffered from depression or anxiety. About 4 in 10 parents have noticed behavioral changes in their children that they attribute to their difficulties in finding work.
It doesn’t seem that many members of Congress fully understand yet the havoc that’s been let loose in the land because of widespread unemployment. Meanwhile, posturing over ideology continues. They all might benefit if they could listen with open hearts to the plight of those without work in their districts and states, as aptly depicted in the song, “We Can’t Make It Here,” written by James McMurty during the Bush era, even before the meltdown, and unfortunately, it still applies today.
Who is listening to them now?
*This article originally appeared in The Huffington Post on December 17, 2009. Reprinted with permission from the author.
About the Author Art Levine is a contributing editor of The Washington Monthly, and a former Fellow with the Progressive Policy Insititute. He has also written for Mother Jones, The American Prospect, The New Republic, The Atlantic, Slate, Salon and numerous other publications. He is the author of 2005’s PPI report, Parity-Plus: A Third Way Approach to Fix America’s Mental Health System, and is currently researching a book on mental health issues. Levine also posts commentary at Art Levine Confidential
The Obama administration came out with its first set of numbers on the jobs impact of its stimulus package. It’s pretty much along the lines of what was predicted. To date, the package has created close to one million jobs. That is good news, but in an economy with more than 15 million unemployed workers, it is not nearly good enough. We need to do more, much more.
Fortunately, there is an easy and quick way to begin to get these unemployed workers back to work. It involves paying workers to work shorter hours. The mechanism can take the form of a tax credit to employers. The government can give them a tax credit of up to $3,000 in order to shorten their workers’ hours while leaving their pay unchanged. The reduction in hours can take the form of paid sick days, paid family leave, shorter workweeks or longer vacations. The employer can choose the method that is best for her workers and the workplace.
A map showing Michigan, the west coast, the southwest and the southeast as hardest hit by unemployment. (Photo: austrini / flickr)
If take-home pay is left unchanged as a result of the credit, then demand should be left unchanged. If workers are on average putting in fewer hours and demand is unchanged, then employers will need to hire more workers.
This logic is about as simple as it gets. The process is also quick and cheap. In principle, the government can go this route to save jobs at a cost of a bit more than $20,000 per job, far less than the estimates of the cost per job under the administration’s stimulus package.
We don’t even have to speculate about whether this sort of short-hours arrangement can work. Germany put a short-hours program in place at the start of its recession. Its unemployment rate today is 7.6 percent, about the same as the unemployment rate it had going into the recession. Imagine that workers in the United States, like workers in Germany, were dealing with the recession by putting in four-day weeks (while getting paid for five) or getting an extra two weeks a year of paid vacation. This sure beats being unemployed or being threatened with unemployment.
Seventeen states already have a “work-share” program in place that allows employers to use unemployment insurance money to cover a reduction in work hours, without a corresponding reduction in pay. More than 100,000 layoffs have been prevented as result of this program.
Sen. Jack Reed of Rhode Island has a bill that would increase funding for work-share programs and remove some of the bureaucracy that makes it difficult for employers to take full advantage of the programs that currently exist. The bill would also provide start-up money for the states that do not have work-share programs.
The Reed bill would be a big step towards following the Germany model, taking advantage of a program that is already in place. It could very quickly make a big dent in the unemployment rate, by preserving many of the jobs that are now being lost.
In this respect, it is important to clear up a common confusion about the economy. Every month, we get a figure from the Labor Department for the new jobs created or lost. However, this is a net figure. Approximately four million people leave their jobs every month, about half of these workers, or two million, lose their jobs involuntarily. If the economy creates more than four million new jobs, then we will have a positive jobs figure for the month. If the economy creates less than four million new jobs, then the Labor Department will report that the economy lost jobs in the month.
Suppose that this work-share program reduced the number of people who lose their jobs involuntarily by 20 percent, or 400,000 workers per month. This would have the same effect to our job count as adding 400,000 additional new jobs. If this rate could actually be maintained over a full year, then it would imply that the economy would generate nearly five million new jobs.
All the projections show that the unemployment rate is likely to continue to rising for the immediate future and remain high for years to come. The Congressional Budget Office projects that the unemployment rate will average 10.2 percent next year and even in 2011 it will average 9.1 percent. If this projection proves accurate, it would be a disastrous scenario for tens of millions of people.
There are quick and effective ways to increase employment, with shorter hours at the top of the list. Making tens of millions of people suffer for economic mismanagement and the greed of the bankers is not acceptable. We must do something.
About the Author: Dean Bakeris co-director of the Center for Economic and Policy Research in Washington, DC. He is frequently cited in economics reporting in major media outlets, including the New York Times, Washington Post, CNN, CNBC, and National Public Radio. He writes a weekly column for the Guardian Unlimited (UK), and his blog, Beat the Press, features commentary on economic reporting. His analyses have appeared in many major publications, including the Atlantic Monthly, the Washington Post, the London Financial Times, and the New York Daily News. He received his Ph.D in economics from the University of Michigan.
Unions are popularly known as “the folks who brought you the weekend.” In contrast, the U.S. Chamber of Commerce has the distinction of trying to take away the weekend–along with overtime pay, the minimum wage, Buy America rules, workers’ freedom to form unions, child labor standards….The list is long and ugly.
So it’s farcical that today the Chamber launched a campaign estimated to run in the tens of millions of dollars to promote job creation.
The Chamber’s campaign originally started out as an attack against financial regulation–until the Chamber found out how strongly U.S. taxpayers support reining in Big Banks and the financial industry’s widespread shady practices. So the Chamber conveniently changed the packaging to purportedly focus on jobs, which in fact the American people desperately need.
Look at who accompanied the Chamber suits while they were announcing their Orweillian-named “free enterprise campaign.” As Sam Stein reported here:
Many of the individuals featured on Wednesday are long-standing donors to Republican candidates and groups that have fought efforts to enhance regulation. And, in one case, the business leader appearing alongside [Thomas] Donohue to decry the interference of government in the market place received business through the benefit of government contracts.
Yet, while millions of America’s workers struggle to find jobs in an economy where there are more than six workers searching for every one job, the Chamber repeatedly opposed extending unemployment insurance. Can’t have government interference in the marketplace, after all. Or aid to jobless workers. The same workers the Chamber’s smoke-and-mirrors campaign is supposed to be all about.
The Chamber also is joining with Big Banks and financial giants to try and kill a proposed agency that would protect U.S. consumers from being preyed upon by unscrupulous banks, mortgage lenders and many of the same financial institutions that helped create our nation’s economic disaster. The Obama administration’s proposed Consumer Financial Protection Agency, which this week is being considered in the House Financial Services Committee, would regulate products such as credit cards and home loans, while ensuring the U.S. Securities and Exchange Commission oversaw the $450 trillion “derivatives” market that sunk the world economy.
The Chamber is spending $2 million in attack ads, claiming that the new agency would hamstring even your local butcher from extending you credit for a week. It’s the same sorry effort at deception and outright lies that the health insurance industry now is trying to pull in the debate over health care reform. Tell enough lies and hope someone believes you.
“We’ve made clear that only businesses that offer financial services would be affected by this agency. I don’t know how many of your butchers are offering financial services,” Obama said to laughter.
The Chamber is so twisted up in deception it seems unable to even provide accurate membership numbers. Writing in Mother Jones this week, David Corn points to a big discrepancy between the Chamber’s public membership numbers and reality.
In testimony before Congress, statements to the press, and on its website, the Chamber claims to represent “3 million businesses of all sizes, sectors, and regions.” In reality, the number is probably closer to 200,000.
Not sure if the 200,000 includes Apple Inc., Pacific Gas & Electric and the other giant corporations that recently have pulled their membership from the Chamber because of its draconian stand on climate change.
The Chamber’s so-called “free enterprise” campaign has been tried before. After World War II, the National Association of Manufacturers led a similar such effort. That campaign to sell capitalism to U.S. consumers incurred the derision of no less than the editors of Fortune magazine, who found similar sentiments among business executives represented on the boards of the business associations that supposedly represented them.
In dismissing the campaign as ludicrous, one such executive described it this way:
The best way we can demonstrate the importance of Free Enterprise is to make it work.
It’s clearly not working now. And although the Chamber may try to wrap itself in the shiny trappings of a feel-good campaign, its repeated attacks on consumers and workers demonstrate who the Chamber stands for: Wall Street not Main Street.
This post originally appeared in Campaign for America’s Future on October 15, 2009. Reprinted with permission by the author.
About the Author: Richard L. Trumka was elected AFL-CIO president in September 2009. He served as AFL-CIO secretary-treasurer since 1995. Born in Nemacolin, Pa., on July 24, 1949, Trumka was elected to the AFL-CIO Executive Council in 1989. At the time of his election to the secretary-treasurer post, he was serving his third term as president of the Mine Workers (UMWA). At the UMWA, Trumka led two major strikes against the Pittston Coal Co. and the Bituminous Coal Operators Association. The actions resulted in significant advances in employee-employer cooperation and the enhancement of mine workers’ job security, pensions and benefits.
Mitchell Hirsch catches a whole bunch of 
As the nation’s unemployment rate remains at record levels, it’s no surprise that employment agencies have become a popular destination for those in search of work. Immigrants, especially new arrivals, have increasingly turned to these places with the hope of building a better life.
Employees will march into Reliable Staffing office to demand billing records, highlight mistreatment
Remarks by AFL-CIO President Richard L. Trumka at the Institute of Politics, Harvard Kennedy School
*This article originally appeared in 
With heavy defections from Blue Dog Democrats, the House of Representatives still narrowly passed Wednesday evening 217 to 212 a $154 billion 
Unions are popularly known as “the folks who brought you the weekend.” In contrast, the U.S. Chamber of Commerce has the distinction of trying to take away the weekend–along with overtime pay, the minimum wage, Buy America rules, workers’ freedom to form unions, child labor standards….The list is long and ugly.
