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Posts Tagged ‘EPI’

This week in the war on workers: Trump's top attacks on workers ... so far

Monday, April 24th, 2017

 

The Economic Policy Institute’s Perkins Project “tracks actions by the administration, Congress, and the courts that affect people’s wages and their rights at work,” and as we get to the end of Donald Trump’s first 100 days, they’ve provided a list of the top 10 things he and congressional Republicans have done to working people. Here’s a sample:

 

  1. Protecting Wall Street profits that siphon billions of dollars from retirement savers. At President Trump’s behest, the Department of Labor has delayed a rule requiring that financial professionals recommend retirement investment products that serve their clients’ best interests. The “fiduciary rule” aims to stop the losses savers incur when steered into products that earn advisers commissions and fees. The rule was supposed to go into effect April 10. For every seven days that the rule is delayed, retirement savers lose $431 million over the next 30 years. The 60-day delay will cost workers saving for retirement $3.7 billion over 30 years.
  2. Letting employers hide fatal injuries that happen on their watch. The Senate approved a resolution making it harder to hold employers accountable when they subject workers to dangerous conditions. The March 22 resolution blocks a rule requiring that employers keep accurate logs of workplace injuries and illnesses for five years. This time frame captures not just individual injuries but track records of unsafe conditions. President Trump said he would sign the resolution. If he does, employers can fail to maintain—or falsify—their injury and illness logs, making them less likely to suffer the consequences when workers are injured or killed. Blocking this rule also means that employers, OSHA, and workers cannot use what they learn from past mistakes to prevent future tragedies. If the rule is overturned, more workers will be injured, and responsible employers will be penalized.
  3. Allowing potentially billions of taxpayer dollars to go to private contractors who violate health and safety protections or fail to pay workers. The federal government pays contractors hundreds of billions of dollars every year to do everything from manufacturing military aircraft to serving food in our national parks. The Fair Pay and Safe Workplaces rule required that companies vying for these lucrative contracts disclose previous workplace violations, and that those violations be considered when awarding federal contracts. The rule was needed, as major federal contractors were found to be regularly engaging in illegal practices that harm workers financially and endanger their health and safety. On March 27, President Trump killed this rule by signing a congressional resolution blocking it. This will hurt workers and contractors who play by the rules, while benefitting only those contractors with records of cutting corners.

This article originally appeared at DailyKOS.com on April 22, 2017. Reprinted with permission.

Laura Clawson is a Daily Kos contributing editor since December 2006. Labor editor since 2011.

Modern-day Braceros: The United States has 450,000 guestworkers in low-wage jobs and doesn’t need more

Friday, March 31st, 2017

On César Chávez Day, lost in all the news about the Trump administration’s criminalization and scapegoating of immigrants and attempts to withhold federal funds from cities with policies that protect immigrants, are the 450,000 low-wage-earning migrant workers employed in the United States through the H-2A, H-2B, and J-1 visa temporary foreign worker programs. Many of the workers in these temporary visa programs are in a precarious situation and vulnerable to abuse and retaliation at the hands of employers and their agents.

These “guestworkers” often arrive in the United States in debt, and are tied to and controlled by their employers. Research shows guestworkers are often paid lower wages than similarly situated U.S. workers, and earn wages similar to those of undocumented immigrant workers. This is reminiscent of the Bracero Program—a large guestworker program in the 1940s, 50s, and 60s that admitted hundreds of thousands of Mexican workers to work temporarily on U.S. farms and in other low-wage occupations—and which César Chávez fought against. Chávez knew that exploited, indentured, and underpaid workers would degrade labor standards for all workers in the United States, including immigrants. After scandals, political pressure, and President John F. Kennedy campaigning against it, the program was terminated in 1964.

Sadly, America has not learned its lesson. The United States is repeating an historical mistake, once again admitting large numbers of guestworkers in low-wage occupations. With the possibility looming that the Trump administration will reduce enforcement and oversight in guestworker programs—which will be further exacerbated if Trump’s proposed 21 percent budget cuts to the Department of Labor (DOL) are enacted—the United States may once again face scandals like the one where the bodies of guestworkers who died in a traffic accident were not immediately claimed, because farm labor contractors and agricultural growers argued over who their employer was.

A snapshot of today’s low-wage guestworker programs

The H-2A program allows employers to hire workers from abroad for agricultural jobs that normally last less than one year, including picking crops and sheepherding. There is no numerical limit on H-2A visas, and in recent years, the H-2A program has grown sharply, doubling over the past five years to 134,000 workers, and accounting for nearly 10 percent of the crop labor force.

H-2B workers are employed in seasonal (nine months or less) low-wage nonagricultural jobs like landscaping, forestry, food processing, hospitality, and construction. There is an annual numerical limit of 66,000, but workers often stay longer than one year or have their stay extended. Despite the cap on the H-2B program, a “returning worker exemption” allowed 85,000 new visas to be issued in 2016.

The J-1 visa is part of the Exchange Visitor Program, a cultural exchange program run by the State Department that has 14 different J-1 programs, including programs that permit Fulbright Scholars to come to the United States, but also five de facto low-wage guestworker programs. J-1 workers in low-wage occupations are au pairs, camp counselors, maids and housekeepers, lifeguards, and staff restaurants, ice cream shops and amusement parks and national parks like Yellowstone. Only one of the five programs is numerically limited: the Summer Work Travel program is capped at 109,000 per year.

Numerous media reports and legal proceedings have documented how H-2A, H-2B, and J-1 guestworkers are treated poorly. For example, Buzzfeed News asked whether H-2A and H-2B are “The New American Slavery?” and Politico Magazine reported this week that the State Department covered up and lied about thousands of complaints received from J-1 workers. Immigrant worker advocates have been sounding the alarm bells about all three programs for years, but the employers who hire guestworkers continue to lobby for more visas and fewer rules that protect workers.

So, how many workers are employed in these three programs? Calculating the number of workers is not straightforward, and the government does not publish reliable data by visa. Using the same methodology I developed in this report, I estimate in Table 1 below that there were over 270,000 low-wage workers employed in the H-2A and H-2B programs in 2016.

 
Table 2 shows that the number of J-1 workers in low-wage occupations was 167,960 in 2015, and the number in 2016 was likely similar (2016 data on J-1 are not available).

Modern-day low-wage guestworker programs larger than Bracero at its peak

The grand total of guestworkers employed in low-wage occupations in all three programs in 2016 is 438,190 (Table 3), close to half a million, but many were not employed in the United States for the entire year. On average, H-2A workers were in jobs certified to last for seven months, more than half of the H-2B workers counted were employed for the entire year, and most J-1 workers counted were employed for four months, but one-third worked for the entire year.

Comparable estimates for the number of temporary Bracero workers are difficult to come by. The most commonly cited statistic is that there were almost 450,000 Braceros “admitted” in the peak year of 1956, meaning that this many workers authorized through the Bracero program entered the United States. However, using admissions to count unique workers, as many reports have done, is misleading. For example, the number of H-2A workers admitted in 2015 was more than 2.5 times the number of visas (a proxy for the number of workers) issued that year, in part because some H-2A workers live in Mexico and commute daily to jobs in the Arizona and California deserts, generating an individual, counted admission each time they enter the United States.

A Bracero worker’s job could last from six weeks to six months, also making it difficult to count the actual number of workers. To get a better measure of how many Bracero workers there were and what their impact was on the labor market, the DOL calculated the average annual number of Bracero workers, generating an estimate of full-time equivalent workers. The table below, from a 1973 study, shows 125,700 full-time equivalent (FTE) Bracero workers in 1956, the peak year for admissions, suggesting a ratio of 3.5 Bracero admissions per FTE job. The peak year for FTE Braceros was in 1959, at 135,900. (Ignore the number of “immigrants” below, which represents Mexican nationals who became permanent residents in those years.)

A similar “annual average” calculation of temporary, low-wage foreign workers present in the United States in 2016 would be lower than 438,000; but how much lower depends on the length of time that each individual worked in the United States. However, no matter how you count, there’s no question that there are more low-wage guestworkers today than there were Bracero guestworkers in the peak year for either Bracero admissions or FTE workers.

Lobbying blitz around guestworker programs is already underway, and will be exacerbated by the Trump administration’s immigration enforcement

Through an executive order, President Trump has already redefined the priorities for deportation so broadly that nearly every unauthorized immigrant is now considered a priority for detection and removal, and his administration is expected to step up enforcement against unauthorized migration on the southern U.S. border and at worksites within the interior of the United States. This will impact the five percent of the U.S. labor force that is comprised of unauthorized immigrant workers. Two-thirds of the entire unauthorized population has lived in the United States for at least 10 years, and unauthorized migration over the Mexico-U.S. border is at historically low levels, which means the Trump administration will mostly be trying to remove long-term residents who are integrated into the United States through employment and family ties.

If a significant number of unauthorized immigrants are removed and fewer new workers arrive, employers are likely to request more guestworkers, particularly in agriculture, landscaping, hospitality, and construction. Employers seeking new workers are likely to pressure the Trump administration and Congress to create new temporary foreign worker programs and/or expand the current programs, as well as to loosen and curb the enforcement of rules that protect migrant and U.S. workers. Specifically, employers are pressing Congress to eliminate the requirement to provide housing for H-2A workers and they want to remove the cap on H-2B visas.

This corporate lobbying blitz has already gotten underway, as many low-wage employers have become addicted to having indentured employees who can’t complain or legally search for a better U.S. job. Just yesterday, the Wall Street Journal editorial board called for more guestworkers in low-wage jobs, warning of a “growing labor shortage” in agriculture and construction. But they failed to mention that the earnings of most farmworkers are still extremely low and that the latest JOLTS data from the Bureau of Labor Statistics show there are three unemployed construction workers for every job opening—not exactly signs of a dire shortage.

Both Democrats and Republicans seem to have a soft spot for employers seeking low-wage guestworkers. At a recent hearing, Republican Governor Sonny Perdue and Democratic Senator Kristen Gillibrand discussed and described the H-2A program as too “cumbersome” for farm employers, even though there is no limit on the number of H-2A workers they can hire and DOL has processed 99 percent of applications in a timely way in 2017. Low-wage nonfarm employers persuaded 32 legislators to sign a bipartisan letterasking the Department of Homeland Security (DHS) to audit the H-2B program in an effort to build support to expand the program (by exempting returning workers from the 66,000 a year cap). Republican-sponsored legislation to do just that—exempt returning H-2B workers from the annual cap—was introduced in the House this month, with two Democratic co-sponsors.

Does the United States need to expand its modern-day Bracero programs?

Changing and loosening the rules in work visa programs could lead to a quick doubling of the number of low-wage guestworkers in the United States. Is one million low-paid, exploitable, indentured workers—who have no path to lawful permanent residence and citizenship—what the U.S. economy needs? César Chávez would say, “No!” Migrants who come to the United States and contribute to the economy should be afforded civil, human, and labor rights, and a chance to become American.

Furthermore, the number of jobs for workers with a high school degree or less has not yet recovered to the pre-recession levels of late 2007, and wages for less-educated workers have stagnated. In other words, labor market indicators do not suggest the United States needs more low-wage guestworkers. Then why are employers and Congress fixated on this? Changing the low-wage labor market in this manner deserves a fully informed public debate and Congress should be held accountable. Any expansion of low-wage guestworker programs should not occur through deregulation at the federal agency level or via must-pass omnibus appropriations legislation, as has occurred time and time again over the last decade.

This article was originally posted at EPI.org on March 31, 2017. Reprinted with permission.

Daniel Costa has been director of immigration law and policy research since 2013, having joined EPI in 2010 as an immigration policy analyst. An attorney, his current areas of research include a wide range of labor migration issues, including the management of temporary foreign worker programs, both high- and less-skilled migration, immigrant workers’ rights, and forced migration, including refugee and asylum issues and the global migration crisis.

Make American Jobs

Monday, February 13th, 2017

President Donald Trump had Harley-Davidson executives and employees over to lunch at the White House last week and reiterated his promise to end wrong-headed trade policies that enable foreign countries to eat American workers’ lunch.

Trump reassured the Harley workers from the United Steelworkers (USW) union and the International Association of Machinists (IAM) that he would renegotiate NAFTA and other trade deals.

“A lot of people [have been] taking advantage of us, a lot of countries [have been] taking advantage of us, really terribly taking advantage of us,” he said as news cameras clicked. “We have to be treated fairly.”

No promise could be more heartening to workers as corporations like Carrier and Rexnord continue to move jobs to Mexico. No news could be better in the same week that the Economic Policy Institute (EPI) released research showing that since 2001, the United States’ massive trade deficit with China cost 3.4 million Americans their jobs.

EPI-jobs-China-Gerard-OurFuture

Workers, families and communities have suffered as trade and tax policy over the past quarter century encouraged corporations to off-shore factories and jobs. Flipping that philosophy to favor American workers and domestic manufacturing is exactly what labor organizations like the USW have long fought for. If Trump actually achieves that, all Americans will benefit.

In the meantime, Rexnord Corp. has finalized plans to uproot its bearings manufacturing machines in Indianapolis, transport the equipment to Mexico and throw 300 skilled and dedicated workers, members of my union, the USW, into the street. Terminations begin Feb. 13.

Automation did not take these workers’ jobs. The lure of dirt-cheap wages in Mexico and tax breaks awarded for the costs of moving jobs and machinery stole them.

Trump talked to the Harley workers and executives about changing tax policy. Ending all special tax deals and loopholes that corporations like Rexnord and Carrier use for shuttering American factories and shipping them to other countries would be a good first step. U.S. policy shouldn’t reward corporations like Rexnord and Carrier that profit from exploiting the international wage race to the bottom and the wretched environmental regulation of emerging nations.

Harley-Gerard-OurFuture

Caption: Photo by Vlad/Flickr

The next logical step would be establishing consequences for those corporations — like requiring them to pay substantial economic penalties if they want access to the U.S. market for their once-domestic and now foreign-made products.

In addition, American policy must be —  just as Trump promised in his campaign — to stop trade law violators who are trampling all over American workers.

The EPI study detailed the devastation caused by the worst violator — China. American workers and companies can compete on a level playing field with any counterpart in the world. But the EPI study shows just how much American workers and their employers suffer when the United States fails to strictly enforce international trade law.

Of the 3.4 million jobs lost between 2001 and 2015 because of the U.S. trade deficit with China, EPI found that nearly three-quarters of them, 2.6 million, were manufacturing jobs. Every state and every congressional district was hit. These are jobs fabricating computer and electronic parts, textiles, apparel and furniture.

Manufacturing jobs such as these provide family-supporting wages and benefits such as health insurance and pensions. As these jobs went overseas, American workers’ income stagnated while those at the top — executives, 1 percenters and corporate stockholders — benefited.

As the rich got richer, the EPI researchers found, all non-college educated workers lost a total of $180 billion a year in income.

When the United States agreed to allow China into the World Trade Organization (WTO) in 2001, former President Bill Clinton said the access that the deal provided American companies to the gigantic Chinese market would create jobs. Promises, promises.

It’s possible no one guessed just how massively China would violate the trade rules it agreed to abide by under the WTO pact. Numerous investigations by the Department of Commerce have found China improperly subsidizes its exports by providing artificially cheap loans, free land, and discounted raw materials and utilities. To keep its workers employed, China helps finance overproduction in industries like steel and aluminum, then dumps the excess at below-market prices in the United States, bankrupting mills and factories here.

China pirates innovation, software and technology from foreign producers. To steal trade secrets, its military hacked into the computers of American corporations and the USW. In addition, China has manipulated the value of its currency so that its exports are artificially cheap and imports from the United States are artificially expensive.

Even if the scale of violation was underestimated, when it occurred, the American government had a responsibility to take action, to file trade cases, to take issues before the WTO, to negotiate to bring China in line with international standards and protect American jobs and preserve domestic manufacturing, which is crucial to national defense.

Precious little of that occurred. The trade deficit with China exploded, obliterating American jobs — a quarter million on average every year since China joined the WTO in 2001. China exports to the United States its overproduced aluminum, steel and other commodities, but also its unemployment.

After that lunch, Trump thanked Harley-Davidson for assembling its iconic motorcycles in America. He extended his hand in aid, saying, “We are going to help you, too. We are going to make it really great for business, not just for you, but for everybody. We are going to be competitive with anybody in the world.”

American workers and domestic manufacturers already are competitive. What they need is a government that doesn’t require them to compete with a handicap so huge that it’s like asking Evel Knievel to jump his Harley-Davidson XR 750 over 19 cars without a ramp. What they need is tough action against corporations that renounce their birthplace for profit and against flagrant, job-stealing trade violators like China.

This post originally appeared on ourfuture.org on February 7, 2017. Reprinted with Permission.

Leo Gerard is the president of the United Steelworkers International union, part of the AFL-CIO. Gerard, the second Canadian to lead the union, started working at Inco’s nickel smelter in Sudbury, Ontario at age 18. For more information about Gerard, visit usw.org.

Minimum Wage Boost Could Create 100,000 Jobs

Wednesday, August 15th, 2012
Credit: Joe Kekeris

Credit: Joe Kekeris

ib341-figureA.png.538When wages rise, workers and communities benefit. So imagine how improved our national economy would be if the wages of nearly 30 million workers got a boost?

If Congress acted to raise the federal minimum wage to $9.80 by July 1, 2014, some 28 million workers would see a pay increase, according to the Economic Policy Institute’s (EPI) latest report on the minimum wage. Further, those workers would receive nearly $40 billion in additional wages over the phase-in period.

During an across the board phase-in period of the minimum-wage increase, the U.S. gross domestic product (GDP) would increase by roughly $25 billion, resulting in the creation of approximately 100,000 net new jobs, according to EPI (click on chart at left to expand).

Maybe that’s because raising the minimum wage is a matter of fairness and basic American values: The minimum wage would be $10.55 an hour if it matched the inflation rate. Now it’s $7.25 an hour.

Maybe that’s because raising the minimum wage is a matter of fairness and basic American values: Now at $7.25 an hour, the minimum wage would be $10.55 an hour if it matched the inflation rate.

The newest EPI report reiterates some of its earlier findings, which refute the stereotypes often associated with minimum-wage workers.

  • Women would comprise nearly 55 percent of those who would benefit.
  • Nearly 88 percent of workers who would benefit are at least 20 years old.
  • Although workers of all races and ethnicities would benefit from the increase, non-Hispanic white workers comprise the largest share (about 56 percent) of those who would be affected. About 42 percent of affected workers have at least some college education.
  • Around 54 percent of affected workers work full time, over 70 percent are in families with incomes of less than $60,000, more than a quarter are parents and over a third are married.
  • The average affected worker earns about half of his or her family’s total income.

On July 26, Sen. Tom Harkin introduced a stand-alone minimum-wage bill, S. 3453, The Fair Minimum Wage Act of 2012. On the same day,
Rep. George Miller (D-Calif.) introduced legislation in the House of Representatives, H.R. 6211, mirroring Harkin’s minimum-wage legislation.

Congress is home for summer vacation right now, but lawmakers will be back. And when they return, the AFL-CIO urges them to pass the Fair Minimum Wage Act of 2012 (read letter here), as are noted economists.

This blog originally appeared in AFL-CIO on August 15, 2012. Reprinted with permission.

About the Author: Tula Connell got her first union card while she worked her way through college as a banquet bartender for the Pfister Hotel in Milwaukee they were represented by a hotel and restaurant local union (the names of the national unions were different then than they are now). With a background in journalism (covering bull roping in Texas and school boards in Virginia) she started working in the labor movement in 1991. Beginning as a writer for SEIU (and OPEIU member), she now blogs under the title of AFL-CIO managing editor.

Wages for Young College Grads Fall

Thursday, May 17th, 2012

Image: Mike Hall Most recent young college graduates are a carrying a heavy debt load for their education, and they face a harder time paying it off because their wages have plummeted as well—part of a decade-long decline, according to a new Economic Snapshot from the Economic Policy Institute (EPI).

“Between 2007 and 2011, the wages of young college graduates dropped by 4.6 percent (5.1 percent for men and 4.1 percent for women). However, the wage growth of young graduates was weak even before the recent recession began. They have fared poorly over the entire period of general wage stagnation that began during the 2000-2007 business cycle. Between 2000 and 2011, the wages of young college graduates dropped 5.4 percent (1.6 percent for men and 8.5 percent for women).”

For more information on the job prospects of this year’s graduates, read EPI’s recent report, “The Class of 2012: Labor Market for Young Graduates Remains Grim.”

This blog originally appeared in AFL-CIO on May 16, 2012. Reprinted with permission.

About the author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log. He came to the AFL-CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.

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