Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘fight for 15’

Fast food workers declare victory after McDonald’s withdraws opposition to minimum wage hikes

Tuesday, March 26th, 2019

After six years of strikes, lawsuits, and damning public scrutiny of how the fast food business model relies on taxpayer-subsidized poverty wages, McDonald’s formally withdrew from efforts to block a federal minimum wage hike on Tuesday.

The chain will also stop working against minimum wage increases at state and local levels, its executives told lobbying partners at the National Restaurant Association in a letter.

Workers and organizers involved in the six-year campaign of walk-outs, demonstrations, and litigation, dubbed the “Fight for $15,” immediately celebrated the about-face and pressed their advantage.

“It’s also time the company respect our right to a union. Since day one, we’ve called for $15 and union rights and we’re not going to stop marching, speaking out, and striking until we win both,” Kansas City McDonald’s worker and prominent Fight for $15 leader Terrence Wise said in a statement. “McDonald’s decision to no longer use its power, influence and deep pockets to block minimum wage increases shows the power workers have when we join together, speak out, and go on strike.”

Wise’s mix of praise and warning reflects some murkiness attending the company’s decision. McDonald’s hasn’t renounced its membership in the “other NRA,” just forsworn corporate support for an ongoing lobbying effort funded in part through its own dues payments to the group. And it’s unclear if the company now welcomes the $15 wage floor workers have consistently sought since 2012, or if it merely accepts some smaller increase is inevitable.

The details of how minimum wage hike policies come together are always tricky, as business organizations fight to carve out certain sizes of business and to slow the phase-in period of a wage hike beyond what workers and progressive economists say is reasonable. The nation’s first $15 hourly wage floor deal was the product of months of vigorous negotiations where “everybody left… a little bit of blood on the floor,” as Seattle Hospitality Group leader Howard Wright told ThinkProgress after that city brokered the first low-wage labor peace of the conflict-oriented era workers like Wise created.

Despite Tuesday’s letter, McDonald’s is also continuing to fight a federal labor board’s finding that its franchise business model does not protect the corporate parent from liability for how its franchisees operate their stores. That dispute over whether or not “joint employer” legal doctrines apply to the franchise models common to the fast food industry likely presents a more fundamental threat to McDonald’s ability to funnel money to its shareholders and CEOs than do wage floors.

But if the war between McDonald’s and workers like Wise isn’t exactly over, it’s radically reshaped by Tuesday’s letter, which was first reported by Politico.

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Retail and service workers paid at or near the legal minimum have become a staple of the stock price-obsessed modern U.S. business world. Congress’ multi-generation failure to hike the federal minimum pay has meant that corporate reliance on low-wage work steadily eroded the traditional social contract in which having a job meant being able to afford a decent standard of living. Instead, as people who work substantial hours found themselves impoverished anyhow, government programs funded by taxpayers stepped into the gap — effectively subsidizing the profits McDonald’s and its peers reaped from their low-wage business models.

Stark partisanship within federal government coincided with the rapid, coast-to-coast spread of Fight for $15 strikes and protests, preventing legislative action in response to the mounting labor strife for years. A bill to gradually raise the federal minimum wage from $7.25 to $15 was among the first legislative proposals Democrats introduced after taking the House in last year’s midterm elections.

The same month, Chamber of Commerce officials announced they’d entertain some pay hike provided Democrats were willing to negotiate some flavor of concessions. Like the chamber’s announcement, Tuesday’s high-profile maneuver from McDonald’s carries major symbolic weight but leaves lingering unanswered questions about just how far major corporate interests that have taken publicly-subsidized wage serfdom for granted for decades are now willing to move in the name of economic justice.

This article was originally published at ThinkProgress on March 26, 2019. Reprinted with permission. 

About the Author: Alan Pyke is a reporter for ThinkProgress covering poverty and the social safety net.

We’ve Been Fighting for $15 For 7 Years. Today I’m Celebrating a Historic Victory.

Tuesday, February 19th, 2019

On Tuesday, Illinois became the first state in the Midwest to enact legislation phasing in a $15-per-hour minimum wage, giving 1.4 million workers a raise every year between 2020 and 2025.

Upon hearing the news last week that both houses of the Illinois General Assembly had passed the $15 minimum wage bill and would be sending it to Gov. J.B. Pritzker’s desk, I immediately thought back to just over seven years ago, when I was present at the creation of the Fight for $15 campaign.

It was late 2011. Centrist Democrats in Washington—more worried about closing the national deficit than addressing rising poverty—searched for a so-called “grand bargain” to slash the social safety net in exchange for raising taxes. But starting that September, a multitude of fed-up activists united under the banner of Occupy Wall Street to call out extreme economic inequality through direct action.

After spending several weeks camped out in New York’s Zuccotti Park as a participant in Occupy Wall Street, I returned home to Chicago and followed Newt Gingrich’s sage advice to “take a bath and get a job,” getting hired in December as an organizer with the community organization Action Now. A handful of other newly hired organizers and I were assigned to a campaign with the seemingly ambitious goal of raising Illinois’ minimum wage from $8.25 to $10 an hour.

From the start, the philosophy of the campaign, known only internally as “LWWO”
(“low-wage worker organizing”) was that lawmakers in Springfield would not prioritize raising the minimum wage unless workers collectively demanded it through mass action. A group of other newly hired organizers and I would roam the stores and restaurants of Chicago’s Loop and Magnificent Mile at all hours of the day, trying to get as many workers as possible to sign petition cards calling for a $10 minimum wage. A common response early on was that $10 would be nice, but was unrealistic.

As the campaign proceeded in early 2012, my fellow organizers and I realized we were part of something bigger than we had first assumed. The campaign, we learned, was being funded by the Service Employees International Union (SEIU). In the wake of Occupy—which had greatly contributed to the reinvigoration of class politics with the popular 99% vs. 1% slogan—SEIU’s top officials were exploring the possibility of a nationwide effort to unionize the food-service and retail sectors, site of the largest post-recession job growth.

The only problem was that union leaders, often averse to taking risks, have traditionally viewed low-wage, service sector workers as “unorganizable” due to the precarious nature of their employment and the intense anti-union animus of companies like McDonald’s. Our job was to gather enough contacts among downtown Chicago’s low-wage workforce to prove to SEIU officials that these workers could indeed be organized and that they should greenlight the proposed unionization effort.

Of course, managers at downtown stores and restaurants did not like us entering their place of business and talking with their employees about how wages were stagnating while the cost of living kept rising. My fellow organizers and I did not ask for permission, but would talk with workers any way we could—behind the manager’s back, on shift changes or smoke breaks, or walking into the kitchens of restaurants uninvited. We got kicked out of virtually everywhere, but we kept coming back. Most effective of all, we recruited some of the workers themselves to begin circulating our petition among their coworkers.

By the spring of 2012, we had gathered over 20,000 contacts. This, along with the simultaneous success of a similar effort in New York City, was enough to convince SEIU leadership to move forward with the organizing drive in both cities. Over the summer and into the fall, after months of one-on-one conversations and small group meetings, hundreds of fast-food and retail workers came together to found the Workers Organizing Committee of Chicago, while a similar organization was formed in New York.

In late November and early December2012—deliberately coinciding with the holiday shopping season—workers in both New York and Chicago held 1-day strikes to demand a $15-per-hour minimum wage and the right to form a union. The Fight for $15 was officially on.

I had left the campaign in late summer to go to graduate school, and was surprised to see that the wage demand had jumped from $10 to $15. But it made sense from a strategic standpoint. Ten, even twelve dollars would seem a lot more reasonable if workers were demanding fifteen. More importantly, it made sense from a moral standpoint. Workers needed and deserved at least a $15-an-hour wage.

In talking with so many retail and fast-food workers, I had come to know in vivid detail how exploited they truly were—not only in terms of being paid poverty wages by multibillion-dollar corporations and having to work multiple jobs or receive public assistance just to scrape by, but also in terms of being subjected to daily harassment, abuse and disrespect by managers and customers.

The Fight for $15 has never been solely about boosting workers’ wages, but also boosting their dignity. The demand for “15 and a union” in the early 21st century has become as iconic to the labor movement as the demand for the 8-hour workday was in the late 19th century. In the years since the campaign went public, there have been countless short-term strikes by low-wage workers across the country, and the globe.

While the Fight for $15 has faced justified criticisms for being too top-down and too focused on media attention, it has also scored numerous victories. Dozens of cities and states have raised their minimum wages, hundreds of thousands of Amazon employees now have a $15-per-hour minimum wage, and millions of workers in five states and the District of Columbia are now on the path to a $15-per-hour minimum wage. As progressives in Congress push for a federal $15 minimum wage, workers in low-wage sectors will have to keep organizing to win unions so they can bargain for increased pay raises, benefits and other workplace rights—the next horizon of the movement.

To me, the passage of Illinois’ $15 minimum wage bill this week is proof that no matter how “impossible” they may seem, bold initiatives aimed at dramatically improving the lives of working people are, in fact, achievable.

This article was originally published at In These Times on February 19, 2019. Reprinted with permission. 

About the Author: Jeff Schuhrke is a Working In These Times contributor based in Chicago. He has a Master’s in Labor Studies from UMass Amherst and is currently pursuing a Ph.D. in labor history at the University of Illinois at Chicago. He was a summer 2013 editorial intern at In These Times. Follow him on Twitter: @JeffSchuhrke.

2017 was a year of eroding workers’ rights

Thursday, December 28th, 2017

There have been a series of victories for labor rights in recent years. Graduate student workers at private colleges and universities now have the right to unionize. In New York, employers are no longer allowed to ask for an employee’s salary history — a question that often hurts women and people of color. And the Fight for 15 has scored wins in cities across the country.

But the Trump administration stands in the way of much of the progress labor activists are demanding. It may not be as noisy or ripe for attention-grabbing headlines as Betsy DeVos’ education department or Scott Pruitt’s Environmental Protection Agency, but Alexander Acosta’s labor department has rolled back a number of key Obama-era labor advances.

“Acosta is not a bomb-thrower,” said Jeffrey Hirsch, law professor at University of North Carolina at Chapel Hill. Unlike some of Trump’s other less traditional choices for agency heads, Acosta had already been confirmed by the Senate for three previous positions and was considered a safe choice for labor department secretary.

Still, it’s clear the department is now under a Republican administration.

The National Labor Relations Board (NLRB), which enforces fair labor practices, has an employer-friendly majority. The General Counsel of the NLRB is Peter Robb, a lawyer who management-focused firm Jackson Lewis wrote would “set the stage for the board to reverse many of the pro-labor rulings issued by the Obama board”. The Senate also confirmed to the NLRB William Emanuel, whose nomination was supported by corporate donors and industry groups like the National Retail Federation, U.S. Chamber of Commerce, and National Restaurant Association. Emanuel’s work previous focused on union avoidance tactics and among his former clients were Amazon, Target, Uber, and FedEx.

With these new additions, the Department of Labor has been busy dismantling protections for workers. Here are some of the biggest ways the Trump administration rolled back workers’ rights in 2017:

Less accountability for corporations like McDonald’s

One of the labor rollbacks that gained the most attention this year was the board’s decision to overturn the new joint employer standard that was supposed to make it easier for corporations to be held accountable for unfair labor practices at their franchises. Labor advocates expected the decision for some time after the department rescinded guidance that defines who a joint-employer is.

The Obama administration’s standard on joint employers went beyond simply looking at who sets wages and hires people, and considered a worker’s “economic dependency” on the business. McDonald’s has tried to avoid responsibility for violations like wage-theft for years. In 2016, McDonald’s settled a wage-theft class action and released a statement that said it “reconfirms that it is not the employer of or responsible for employees of its independent franchisees.”

“Under the previous rule, you only needed to show [McDonald’s] had a theoretical amount of control. They reserve the right to control terms and conditions of work and controlled those conditions in an indirect manner like setting policies that other companies have to follow,” Hirsch explained. “The new case has said that no, you need actual direct control. When push comes to shove, it’s a matter of evidence and how much proof you have, so you may well still have a case against McDonald’s but you’re going to have to show that there is more actual control.”

Reduced protections for quality investment advice

In August, the Labor Department said it would like to delay a rule that would require financial advisors to act in the best interest of their customers and their retirement accounts. According to a federal court filing, the department wanted to delay implementation of the rule to July 2019. The full implementation of the rule is currently set for January 2018.

There are two standards investors have to be aware of right now: the fiduciary standard and suitability standard. A financial adviser operating under what is called the “suitability standard” is only required to make sure a client’s investment is suitable for the client’s finances, age, and risk tolerance at that point in time, but they don’t have a huge legal obligation to monitor the investment for the client. Under the fiduciary standard, an adviser must keep monitoring the investment and keep the customer’s overall financial picture in mind. In addition, advisers must disclose all of their conflicts of interest, fees, and commissions under the fiduciary standard. Right now, it’s easier for advisers to push investments that will make them money but are not necessarily in clients’ best interest, said Paul Secunda, professor of law and director of the labor and employment law program at Marquette University Law School.

“That rule has been substantially cut back, though how far back we’re still waiting to see. The current admin is in a holding pattern right now and my sense is that it could be cut back fairly dramatically even further,” Secunda said.

None of these labor department actions have been good enough for the financial industry, however. Plaintiffs in a lawsuit that included the Securities Industry and Financial Markets Association, the Financial Services Institute, the Financial Services Roundtable and the U.S. Chamber of Commerce, sent a Dec. 8 letter to the U.S. Court of Appeals for the Fifth Circuit. The plaintiffs said the delay of regulation shouldn’t hold up their appeal, where they argue the department does not have the authority to promulgate the rule, according to InvestmentNews.

Reduced worker safety

Experts on labor violations and the Occupational Safety and Health Administration told ThinkProgress they were concerned about how OSHA would respond to Hurricanes Harvey and Irma, especially since the Trump administration has slashed worker safety rules from the Obama administration. 

Trump’s OSHA has left behind regulations on worker exposure to construction noise, combustible dust, and vehicles backing up in factories and construction sites, according to Bloomberg BNA. It also abandoned a rule that would change the way the agency decides on permissible exposure limits for chemicals. The July regulatory agenda did not list any new rule-making. The president’s 2018 budget would have killed OSHA’s Chemical Safety Board, which looks into chemical plant accidents, as well as the Susan Harwood grant program, which benefits nonprofits and unions that provide worker safety training.

“OSHA is taking a turn we usually see during Republican administrations, which means a lot less inspections and enforcement and a lot more trying to get employers to self-regulate or voluntarily comply which has not really worked that well historically,” Secunda said. “People who participate in these voluntary participation programs are usually employers who are already in compliance and those who continue to be bad actors are not really impacted by these voluntary programs. OSHA is about to be run by corporate America, which is obviously not good for employees.”

Deciding to let go of Obama-era overtime rule

In July, the labor department moved to roll back an Obama administration rule that would have expanded the number of workers eligible for overtime pay by 4.2 million. The department has not appealed a U.S. District Court in Texas that gave business groups the temporary injunction they wanted.

The current threshold for overtime pay is at just $23,660 a year, and the Obama-era rule would have nearly doubled that. In 1974, 62 percent of full-time salaried workers had a salary that allowed them to be eligible for overtime, but today, only 7 percent of full-time salaried workers earn a salary below this level, according toDavid Weill, dean of the Heller School for Social Policy and Management at Brandeis University who headed the Wage and Hour Division of the department during the Obama administration.

Referring to Acosta, Weill wrote in U.S. News, “Failure to appeal this flawed decision will leave millions working long hours with low pay and abrogate his responsibility to protect the hardworking people he and the Trump administration profess to care so much about.”

Labor department focus on ‘harmonious workplaces’

In one of the NLRB’s less discussed decisions this month, it overruled the Bush-era standard Lutheran Heritage Village-Livonia. This standard went into further detail on whether facially neutral workplace rules, policies, and handbook provisions could unlawfully interfere with Section 7 of the National Labor Relations Act. (Under Section 7, it’s unlawful for employers to interfere with employees’ organizing rights.) The NLRB provides the example of employers threatening, interrogating, or spying on pro-union employees or promising employees benefits if they stay away from organizing as unlawful activity under Section 7.

Under the 2004 standard, employers could have the violated the National Labor Relations Act by instituting workplace rules that could be “reasonably construed” to prohibit workers from accessing these rights even if the employers don’t explicitly prohibit the activities.

Hirsch said he was surprised by the decision to reverse a Bush-era decision. “To me, it seems like they’re doing more than they needed to, which makes me wonder if they’re trying to make a point.”

Hirsch added that the decision appeared to carve out certain types of rules, such as a civility code in the workplace, and say they were permissible. The decision referred to employers who wanted “harmonious workplaces” and cast any opposition to such a requirement to be impractical, but Hirsch said there needs to be a balance in NLRB decisions between clarity and flexibility.

“That can be problematic bevause they’re rules that depending on the history of what has happened in that particular workplace and it could actually be viewed as fairly chilling for those employees,” Hirsch said. “… Labor and management relations aren’t always harmonious. In fact, they are designed not to be in a  lot of ways. Sometimes harsh language is used by both sides and sometimes that is OK, or we’re willing to tolerate that as part of the collective bargaining process rather than having violent strikes, like we did before the NRLA.”

‘Micro-unions’ are out of luck

The NLRB made another business-friendly decision this month when it decided that a unionized group of 100 welders and “rework specialists” at a manufacturing company with thousands of workers was improper. This means it will be easier for employers to oppose what are referred to as “micro unions” even though it can be advantageous for workers to organize this way. The decision went against eight federal appeals court rulings, according to Reuters.

LGBTQ workers’ not protected by Title VII

There is ongoing debate over whether LGBTQ workers have rights to ensure that they are treated fairly in the workplace under Title VII, part of the Civil Rights Act of 1964. Title VII prohibits employers from discriminating against employees on the basis of sex, race, color, national origin, and religion. In July, the Department of Justice undermined rights for LGBTQ people when it filed a brief arguing that prohibition of sex discrimination under federal law does not include the prohibition of discrimination on the basis of sexual orientation.

Fight for $15 Just Scored a Big Win in Maryland. We Have Unions to Thank.

Thursday, November 16th, 2017

A law establishing a $15-an-hour minimum wage in Maryland’s Montgomery County was signed into law Monday, representing a comeback win after a similar measure was defeated by pro-business Democrats just ten months ago.

It’s a meaningful victory for the Fight for $15, the union-inspired campaign to raise wages nationally. Montgomery is the most populous county in the state, with a larger population than the nearby cities of Washington, D.C., or Baltimore. It’s also a bellwether for Maryland politics, where organizing has begun already ahead of the 2018 statewide elections, including organizing aimed at improving Maryland’s wage laws.

“The difference that $15 an hour will make for so many working families cannot be underestimated. And the entire county will benefit as more workers will be able to move off publicly funded programs and spend more on local businesses,” Jaime Contreras, vice president of Service Employees International Union (SEIU) Local 32BJ, told In These Times over email.

Contreras and SEIU have been prominent in the labor coalition that has been supporting a higher minimum wage, along with the United Food & Commercial Workers (UFCW) union, the Laborers’ International Union of North America and others. “We are really proud of what we have accomplished. As with any compromise, we are not totally pleased, but this is a real step forward,” Jonathan Williams, spokesperson for UFCW Local 400, told In These Times.

“The $15 minimum wage win in Montgomery County comes on the heels of last week’s 11 victories of Fight for $15 supporters Ralph Northam in Virginia and Phil Murphy in New Jersey. It shows the continued power of this movement and builds momentum for state-wide action next year in Maryland and other states,” Christine Owens, executive director of the workers’ advocacy group National Employment Law Project, told In These Times over email.

Satisfaction with the victory notwithstanding, some worker advocates grumbled that the political compromises necessary to solidify support came at a high price for some workers. The compromises had been hammered out over the last several months in response the Montgomery County Executive Ike Leggett’s veto of similar legislation approved by the County Council in January.

One of these compromises was an exemption from the law for workers under age 20, a concession to Leggett’s concern that the increase would hurt job opportunities for minority youth. Another compromise extended the phase-in schedule of higher wages so that the $15 minimum does not take effect for small employers until 2023 (50 workers or fewer) or 2024 (10 workers or fewer). For large employers, the new minimum will be phased in through 2021.

Owens said Montgomery “residents should be concerned that county leaders excluded from the full $15 wage younger workers—many of whom are from low-income families or are struggling to work their way through two or four-year colleges—and tipped workers. We urge the county council to revisit and remove these harmful carve-outs.”

Williams added that the UFCW is among those advocating for a state-wide $15 minimum wage bill that could address the problems in some of the carve-outs. Political efforts are initially focusing on selecting a Democratic Party candidate for governor who will be a reliable supporter of $15. Currently, there are numerous candidates in the race, and Democrats are debating who would be the strongest candidate against incumbent Republican Larry Hogan, Williams says.

Hogan is not a supporter of a higher minimum wage and provoked the anger of many workers’ rights advocates in Maryland earlier this year when he vetoed a bill to provide guaranteed sick leave to workers in the state.

UFCW has not endorsed any candidate yet, but SEIU issued an early endorsement of Benjamin Jealous, the former head of the NAACP who is running for governor on a Bernie Sanders-inspired progressive platform, including the $15 minimum wage.

Aside from positive signs in local political races, Fight for $15 recently got a boost from one of the largest private-sector retailers in the country, Target stores. Following worker organizing, Target officials announced in September it would raise the minimum wage for Target employees to $11 an hour this year, with the goal of reaching $15 by the end of 2020. Target currently employs more than 300,000 workers nationwide.

This blog was originally published at In These Times on November 15, 2017. Reprinted with permission. 

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

Seattle's minimum wage increase deals a blow to yet another Republican scare tactic

Thursday, September 21st, 2017

Here’s yet another study that punctures all those scare tactics about what will happen when the minimum wage is raised. Seattle’s minimum wage for large employers went to $13 an hour in 2016—and a recent study from the University of Washington School of Public Health finds that the increase didn’t affect grocery prices in the city:

Otten and colleagues collected data from six supermarket chains affected by the policy in Seattle and from six others outside the city but within King County and unaffected by the policy. They looked at prices for 106 food items per store starting one month before enactment of the ordinance, one month after, and a year later.

Researchers found no significant differences in the cost of the market basket between the two locations at any point in time. A second analysis to assess the public health implications of potential differential price changes on specific items, such as fruits and vegetables, was also conducted and researchers found no evidence of price increases by food group. Meats made up the largest share of the basket, followed by vegetables, cereal, grains and dairy.

So people were earning more money to buy groceries (and other necessities) with, but they weren’t paying more. Add that to Seattle’s booming economy, and the picture looks pretty darn good.

This blog was originally published at Daily Kos Labor on September 21, 2017. Reprinted with permission. 

About the Author: Laura Clawson is labor editor at DailyKos.

Labor unions are trying to take back politics in the Midwest

Monday, September 4th, 2017

On Labor Day — designated a federal holiday in 1894 to honor America’s labor movement — at least eight Democratic candidates will hold rallies in five Midwest cities to tell workers just how far the country has veered from its pro-labor roots.

In Wisconsin, Gov. Scott Walker (R) has helped turn the state red by decimating public-sector unions. In Iowa, Republicans rolled back an increase in the minimum wage in March. Just last week, Illinois’ Republican governor vetoed a billthat would have raised the minimum wage. And Republican governors in Michigan and Ohio have also pushed for regulations that would cripple workers.

In 2018, each will face challenges from unconventional, labor-aligned candidates inspired to run by President Trump’s election and the decline of pro-worker lawmakers, which has resulted in a political system in the Rust Belt that favors the wealthy over the working class. Each candidate will center their campaigns on their support for a $15 minimum wage, progressive health care, and pro-union policies.

Cathy Glasson, a registered nurse and union leader in Iowa who will officially announce after Labor Day her campaign for governor in 2018, said that before this year, she had never considered running for elected office.

“This wasn’t in my plan, but as a union leader, you take action when you see the problems ahead and you don’t sit back and wait for things to change,” she told ThinkProgress. “That’s why I decided when I saw what happened with the legislature and the rollback of the minimum wage. We had raised the minimum wage in five counties in Iowa and this administration literally took money out of the pockets of Iowans — 85,000 Iowans were affected by the rollback here.”

Like other first-time politicians throwing themselves into 2018, Glasson has been a union member for decades and will prioritize the need for more American workers to join unions and employee associations.

“The number one job of any elected official, particularly the governor, should be to raise wages and improve the standard living for all Iowans,” she said. “The union movement and the Fight for $15 and its allies realize that low pay is not okay.”

Glasson’s campaign will have the backing of her union, the Service Employees International Union (SEIU). One of the country’s largest labor unions, SEIU and its Fight for $15 arm — a national campaign to raise the minimum wage to $15 — will announce Monday a push to elect labor-friendly candidates in 2018 in the Midwest states where unions once held tremendous power. The union will budget roughly $100 million for the 2018 midterm elections — around $30 million more than it spent in 2016 — to flip the once-Democratic states back to blue.

In Milwaukee, Wisconsin, Mahlon Mitchell, the president of the Professional Fire Fighters Association of Wisconsin who announced he’s considering a run for governor in July, will rally with workers at a hospital. In Cleveland, Ohio, talk show host and former Cincinnati Mayor Jerry Springer, who is considering a run for governor next year, will join workers at a march. In Des Moines, Iowa, Glasson will also rally at a medical center. In Chicago, Daniel Biss, Chris Kennedy and J.B. Pritzker, three leading 2018 Democratic gubernatorial candidates, will rally with SEIU’s president. And in Detroit, Michigan, Gretchen Whitmer, another gubernatorial candidate, will also rally at a hospital.

“With the election of Donald Trump, we’re seeing a wave of first-time candidates excited about creating change in each of our states,” Glasson said. “We need to give people something to go to the polls and stand in line and vote for.”

Randy Bryce, a Wisconsin ironworker known as “Iron Stache” who launched a challenge to House Speaker Paul Ryan (R-WI) in June and saw his campaign video go viral, will also be participating in Labor Day events across Wisconsin. He told ThinkProgress that, other than his son’s birthday, Labor Day is his favorite holiday.

“Especially in Wisconsin, with all the blatant political attacks, it’s great to see people still getting together and the numbers seem to increase every year, instead of what they’re trying to do, which is decrease our membership,” he said. “It’s great seeing more people get angry, frustrated, and want to fight back at the attacks because the government isn’t doing anything to stand up for workers’ rights.”

In Wisconsin in particular, the labor movement has struggled to fight back against the “banana republicans” in office, as Bryce calls them. “The labor movement took everything that we had for granted up until Scott Walker got elected,” he said.

Republicans in Wisconsin have gerrymandered the state so they do not fear losing their seats, Bryce noted, but the union movement is going to latch onto policies that he believes will resonate with voters across party lines, like wages and health care.

“Iowans and Americans in general are just tired of not fixing the problem, and states like Iowa should lead on this,” she said. “We can do that because it’s a reasonable size states, we can figure out how to pay for it, we can put policies in place that can move that agenda.”

Bryce agreed. “It’s the right thing to do but it’s also going to help create jobs,” he said.

SEUI’s campaign will include a voter engagement drive aimed at expanding the turnout on Election Day in 2018. According to the New York Times, the union conducted a pilot project during the 2016 campaign in which it canvassed voters in two largely African-American neighborhoods of Detroit to spread information about which candidates support workers and higher wages.

“Over all, about 62 percent of voters the union talked to during the pilot project cast ballots in the presidential election, versus turnout of about 38 percent of voters who it did not talk to, according to data provided by the union,” the report noted. “Applying the same percentage to all of Detroit’s voters would have produced about 40,000 more total votes in 2016, an amount that would have almost certainly secured the state for [Hillary] Clinton.”

While the need to push out anti-worker Republicans in the Midwest is paramount, many of the labor-aligned Democrats are also running to provide a counter to the Trump administration. As Glasson noted, the administration has been a disaster for working families and has alienated labor more and more as the year progresses. In August, in the wake of the president’s comments about Charlottesville, AFL-CIO President Richard Trumka left the president’s manufacturing councilsaying that some White House aides “turned out to be racist.”

Glasson said that because of the administration’s hostility toward labor, its critical to have pro-union individuals get involved in politics.

“Unions have been the only way that workers who drive our economy have a voice in politics,” Glasson said. “By collecting and pooling union members’ money, we are a force to be reckoned with in politics, and so the intentional attack on unions in the state of Iowa and the Midwest and beyond is intentional to silent the voice of everyday workers that need to have a voice in politics.”

Bryce agreed that if unions do not get involved now, the Trump administration could decimate the labor movement to a point of no return.

“You’re seeing a lot of people step up since this past election and see that if we don’t get our stuff together, what little we have left, it’s going to be totally gone.”

This article was originally published at ThinkProgress on September 3, 2017. Reprinted with permission. 

About the Author: Kira Lerner is a political reporter at ThinkProgress, where she covers a wide range of policy issues with a focus on voting rights and criminal justice reform. Her reporting on campaigns, elections, town halls, and the resistance movement has taken her to a long list of states across the country (but she’s still working on hitting 50). A native of the Washington, D.C. area, she holds a degree in journalism from Northwestern University’s Medill School of Journalism.

Trump reversal of Obama-era labor rule is great news for corporations

Friday, June 23rd, 2017

A transgender woman is suing McDonald’s and the owner of the franchised restaurant she worked for after allegedly experiencing sexual harassment and discrimination.

La’Ray Reed said a coworker asked if she were a “boy or girl,” “top or bottom,” or what her “role” was “in the bedroom.” She said she was groped and spied on while using the public toilet.

But for Reed to hold McDonald’s responsible for her alleged mistreatment, her lawyers have to prove that McDonald’s should be held responsible as a joint employer—not just the owners of the franchised restaurant. There is a question of whether the Labor Department’s recent decision to rescind the standard for determining who is a joint employer will hinder her ability to seek justice. The Obama administration’s standard went beyond simply looking at who sets wages and hires people, and considered a worker’s “economic dependency” on the business.

McDonald’s has resisted this legal responsibility for many years, and says it does not have control over things like pay and working conditions at franchised restaurants. In 2016, McDonald’s settled a wage-theft class action through a $3.75 million payment that allowed it to dodge responsibility. McDonald’s released a statement that said it “reconfirms that it is not the employer of or responsible for employees of its independent franchisees.”

Industry groups have been pushing against efforts to call businesses like McDonald’s joint employers for many years now. In 2015, Matt Haller, a lobbyist at the International Franchise Association called a 2015 National Labor Relations Board ruling on whether a recycling company could be called a joint employer, “a knife-to-the throat issue for the franchise model.” He told the Washington Post, “You’d be hard pressed to find a business that shouldn’t be concerned about the impact of this joint employer standard.” Haller said IFA was “pleased” at the department’s decision to rescind guidance this month.

But there is certainly hope for La’Ray Reed, and other workers like her who are experiencing discrimination or issues such as wage theft at work. Since the joint employer guidance does not have the full force of law, it is not as important to these cases as existing tests for determining if an employer relationship exists. Under the economic realities test, applied under Title VII of the Civil Rights Act of 1964 and the Fair Labor Standards Act, among other laws, a relationship exists if someone is economically dependent on that business. Paul Secunda, professor of law at Marquette University, who teaches on employment discrimination law, said this test will play a much bigger role in determining whether an employee can hold McDonald’s responsible for discrimination.

“Just the Trump administration withdrawing this guidance does not mean in any way that these claims are doomed to failure or are otherwise are not plausible,” Secunda said. “Because what matters the most with employment law is focusing on employment discrimination under Title VII and what other state laws apply there.”

‘This control standard is the standard that has been in place since the 1950s and ‘60s, and so it doesn’t make sense to have different standards under different laws. It only makes sense to hold liable those who control what happens in the workplace,” Secunda added.

Representatives of Fight for $15, a group of fast food workers, teachers, and adjunct professors advocating for better pay backed by the Service Employees International Union, said McDonald’s has failed to enforce its own policies.

“The growing number of allegations suggests a failure by McDonald’s to enforce the zero-tolerance policy against sexual harassment outlined in its Operations and Training and Policies for Franchisees manuals,” the labor group told BuzzFeed.

“There are terms and conditions that are set by the national parent McDonald’s,” Secunda said. “It has a policy on sexual harassment and equal opportunity that all its franchisees have to meet: that it will not tolerate sexual harassment whether based on transgender status or otherwise in the workplace. [The argument is] that McDonald’s parent company exercises meaningful control—that is being free from sexual harassment and demeaning conduct in the workplace.”

None of this means that any parent corporation is responsible for any franchisees’ lability, Secunda said, since every case must be decided on its facts, but where employers do exercise meaningful control over employees, there should be a possibility that they will be held responsible.

The decision to rescind this joint-employer guidance will by no means kill any possibility of holding a corporation, such as McDonald’s, responsible, and a judge would be more likely to consider the rule of law first, Secunda said, but the joint employer guidance would still be a helpful resource for the defendant to have in its arsenal.

“If I were a conservative jurist who wanted it to come out on the corporate conservative side of the world, I see that they could use this. ‘You know they’re the expert agency, so they can’t be wrong,’” Secunda said. “But I just think that would be disingenuous, because the agency has obviously changed its position based on the politics on the administration. And this should be an answer that has nothing to do with politics. It should be based on rule of law.”

This blog was originally published at ThinkProgress on June 22, 2017. Reprinted with permission. 

About the Author: Casey Quinlan is a journalist covering education, investments, politics, crime, and LGBT issues.

Hints of Progress for Labor in the United States

Friday, June 9th, 2017

With Donald Trump sitting in the White House and right-wing Republicans controlling Congress, there is not much for labor to cheer about on the American national political scene. In addition, the overall prospect for union organizing does not look very good. Republicans are pursuing policies at both the national and state level to further erode union membership. But with all the bad news, there have been some important victories at the state and local levels that can perhaps lay the groundwork for gains nationally in future years.

The most important of these battles has been the drive for an increase in the minimum wage. The national minimum wage has been set at $7.25 an hour since 2009. In the intervening eight years, inflation has reduced its purchasing power by almost 17%. Measured by purchasing power, the current national minimum wage is more than 25% below its 1968 peak. That is a substantial decline in living standards for the country’s lowest-paid workers.

However, the situation is even worse if we compare the minimum wage to productivity. From 1938, when a national minimum wage was first put in place, until 1968, it was raised in step with the average wage, which in turn tracked economy-wide productivity growth. If the minimum wage had continued to track productivity growth in the years since 1968, it would be almost $20 an hour today, more than two and a half times its current level. That would put it near the current median wage for men and close to the 60th percentile wage for women. This is a striking statement on how unevenly the gains from growth have been shared over the last half century.

The Obama administration tried unsuccessfully to make up some of this lost ground during his presidency. While it may have been possible in his first two years when the Democrats controlled Congress, higher priority was given to the stimulus, health care reform and financial reform. Once the Republicans regained control in 2010, increases in the minimum wage were off the table. Needless to say, it is unlikely (although not impossible) that the Trump administration will take the lead in pushing for a higher minimum wage any time soon.

Although the situation looks bleak nationally, there have been many successful efforts to increase the minimum wage in states and cities across the country in recent years. This effort has been led by unions, most importantly the Service Employees International Union (SEIU), whose “Fight for $15” campaign is pushing to make $15 an hour the nationwide minimum. The drive gained momentum with its endorsement by Bernie Sanders in his remarkable campaign for the Democratic presidential nomination last year. While Sanders was of course defeated for the nomination, his push for a $15 an hour minimum wage won the support of many voters. It is now a mainstream position within the national Democratic Party.

However, the action for the near term is at the state and local levels, where there have been many successes. There are now 29 states that have a minimum wage higher than the national minimum. The leader in this effort is California, which is now scheduled to have a $15 an hour minimum wage as of January 2022. With over 12% of the US population living there, this is a big deal. Washington State is not far behind, with the minimum wage scheduled to reach $13.50 an hour in January 2020. New York State’s minimum wage will rise to $12.50 an hour at the end of 2020 and will be indexed to inflation in subsequent years.

Several cities have also jumped ahead with higher minimum wages. San Francisco and Seattle, two centers of the tech economy, both are set to reach $15 an hour for city minimums by 2020. Many other cities, including New York, Chicago and St. Louis have also set minimum wages considerably higher than the federal and state levels.

What has been most impressive about these efforts to secure higher minimum wages is the widespread support they enjoy. This is not just an issue that appeals to the dwindling number of union members and progressive sympathizers. Polls consistently show that higher minimum wages have the support of people across the political spectrum. Even Republicans support raising the minimum wage, and often by a large margin.

As a result of this support, minimum wage drives have generally succeeded in ballot initiatives when state legislatures or local city councils were not willing to support higher minimums. The last minimum wage increase in Florida was put in place by a ballot initiative that passed in 2004, even as the state voted for George W. Bush for president. Missouri, which has not voted for a Democratic presidential candidate in this century, approved a ballot initiative for a higher minimum wage in 2006. South Dakota, Nebraska and Arkansas, all solidly Republican states, approved ballot initiatives for higher minimum wages in 2014. In short, this is an issue where the public clearly supports the progressive position.

These increases in state and local minimum wages have meant substantial improvements in the living standards of the affected populations. In many cases, families are earning 20-30% more than they would if the minimum wage had been left at the federal minimum.

In addition, several states, including California, have also put in place measures to give workers some amount of paid family leave and sick days. While workers in Europe have long taken such benefits for granted, most workers in the United States cannot count on receiving paid time off. This is especially true for less-educated and lower-paid workers. In fact, employers in most states do not have to grant unpaid time off and can fire a worker for taking a sick day for themselves or to care for a sick child. So the movement towards requiring paid time off is quite significant for many workers.

This progress should be noted when thinking about the political situation and the plight of working people in the United States, but there are also two important qualifications that need to be added. The first is that there are clearly limits to how far it is possible to go with minimum wage increases before the job losses offset the benefits. Recent research has shown that modest increases can be put in place with few or no job losses, but everyone recognizes that at some point higher minimum wages will lead to substantial job loss. A higher minimum wage relative to economy-wide productivity was feasible in the past because the US had a whole range of more labor-friendly policies in place. In the absence of these supporting policies, we cannot expect the lowest-paid workers to get the same share of the pie as they did half a century ago.

The other important qualification is the obvious one: higher minimum wages do not increase union membership. The SEIU, the AFL-CIO and the member unions that have supported the drive for a higher minimum wage have done so in the best tradition of enlightened unionism. They recognize that a higher minimum wage can benefit a substantial portion of their membership, since it sets a higher base from which they can negotiate upward. Of course, it is also a policy that benefits the working class as a whole. For this reason, unions collectively have devoted considerable resources to advancing the drive to raise the minimum wage.

However, this has put a real strain on their budgets at a time when anti-union efforts are reducing the number of dues-paying members in both the public and private sectors. This will make it more difficult to sustain the momentum for raising minimum wages and mandating employer benefits. For this reason, the good news on the minimum wage must be tempered. It is a rare bright spot for labor in the United States in the last decade, but it will be a struggle to sustain the momentum in the years ahead.

This blog was originally published at CEPR.net on June 7, 2017. Reprinted with permission.

About the Author:  Dean Baker co-founded CEPR in 1999. His areas of research include housing and macroeconomics, intellectual property, Social Security, Medicare and European labor markets. He is the author of several books, including Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. His blog, “Beat the Press,” provides commentary on economic reporting. He received his B.A. from Swarthmore College and his Ph.D. in Economics from the University of Michigan

Democrats unveil plan for a $15 minimum wage

Thursday, April 27th, 2017

Congressional Democrats have unveiled their strongest minimum wage plan yet. And while Republicans will block this, it’s important to get the word out: this is what we’d be moving toward if Democrats were making the laws.

Their legislation, dubbed the Raise the Wage Act, would gradually raise the federal minimum wage to $15 an hour, increasing it from its current level of $7.25 an hour to $9.20 an hour once it’s passed and then adding about a dollar a year for seven years until it gets to $15. It would rise automatically after that as the country’s median wages rose.

The bill would eventually do away with the separate tipped minimum wage, which currently allows those who earn tips as part of their compensation to be paid as little as $2.13 an hour by their employers. It would increase that rate to $3.15 and then gradually raise it so it would eventually reach $15 an hour.

Seven years is slow, but otherwise, this plan checks some important boxes—in particular, raising the tipped minimum wage and setting it so that the minimum wage rises automatically rather than requiring a fight each and every time it’s raised. If Democrats had done that the last time they raised the minimum wage, it wouldn’t still be stuck at $7.25 an hour nearly eight years after its last increase, years during which it’s lost nearly 10 percent of its purchasing power. The Raise the Wage Act would also ensure that people with disabilities are paid the full minimum wage.

Every single time you talk about lawmakers backing a $15 minimum wage, you have to remember that it’s low-wage workers who pushed $15 into the realm of possibility, organizing around a number nearly $5 higher than the high end of Democratic proposals at the time. Their organizing has changed the discussion—and in two states and several large cities, it’s helped change the law.

We need to change the Congress, though, before we’ll see nationwide progress.

This article originally appeared at DailyKOS.com on April 26, 2017. Reprinted with permission.

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

Trump’s Labor pick hasn’t even had a hearing yet and his confirmation is in serious jeopardy

Wednesday, February 15th, 2017

The fight against President Donald Trump’s pick for secretary of the U.S. Department of Labor, fast food CEO Andy Puzder, is shaping up to be as intense as opposition to Betsy DeVos’ nomination for education secretary. Puzder’s long delayed confirmation hearing is set for Thursday, and a few Republican senators are already signaling they may vote against him.

Sen. Susan Collins (R-ME), Sen. Lisa Murskowski (R-AK), Sen. Tim Scott (R-SC), and Johnny Isakson (R-GA) are withholding their support of his nomination. Sen. Elizabeth Warren (D-MA) made it clear through a 28-page letter with 83 questions for Puzder that she will ensure his confirmation process will be a knock-down, drag-out fight. Other prominent Democrats have spoken out against his record as an employer, and Senate Minority Leader Chuck Schumer (D-NY) has called on President Trump to withdraw Puzder’s nomination.

DeVos ultimately squeaked through a Senate floor debate, but only after an unprecedented tie-breaking vote from Vice President Mike Pence. For weeks before that vote, thousands of people flooded Senate offices with calls against her nomination, and teachers and their allies protested.

Two Republican senators, Sen. Collins and Sen. Murkowski, who now represent half of the Republican senators withholding support for Puzder, voted against her confirmation. Now that twice as many Republicans have already voiced apprehension regarding Puzder, his chances of being confirmed appear even lower.

In her letter, Warren mentioned his “record of prolific labor law abuses and discrimination suits” and “a sneering contempt for the workers in your stores, and a vehement opposition to the laws you will be charged with enforcing.”

Puzder’s CKE Restaurants, which owns fast food restaurants such as Hardee’s and Carl’s Jr., has been the subject of class action lawsuits over the denial of overtime pay as well as lawsuits accusing the company of discrimination. Workers also allege that they were fired for protesting as part of the Fight for 15 campaign.

ROC United, a restaurant employee advocacy group, released a report last month showing that many of the over 500 workers surveyed experienced sexual harassment and unsafe conditions working at CKE restaurants. Sixty-six percent of female CKE employees said they had experienced sexual harassment at work, compared to 40 percent of women who reported such incidents across the entire industry. Puzder has also opposed a $15 per hour minimum wage.

Puzder’s nomination has also been plagued with reports of domestic abuse against his first wife, Lisa Fierstein. On Tuesday, a Missouri judge will rule on whether to unseal records from Puzder’s 1987 divorce, just two days before the nominee’s confirmation hearing. Republican and Democratic senators have also received a tape from the Oprah Winfrey Network that shows a 1990 episode titled, “High-Class Battered Women,” in which Fierstein appeared to discuss the alleged domestic abuse. Fierstein has since retracted the domestic abuse allegations.

Collins has seen the tape, according to Bloomberg, and said, “I am reviewing the other information that has come to light and I’m sure all of this has been explored thoroughly.”

Like the teachers unions that opposed DeVos, which often work with the Fight for $15 campaign, labor groups also have the power to galvanize opposition to Puzder. Last Thursday, thousands of workers protested against his nomination across the U.S., a spokesman for the Fight for 15 campaign told The New York Times. Some of the protesters demonstrated at Carl’s Jr. and Hardee’s locations.

The passionate response to DeVos’ nomination, and eventually confirmation, may also be owed to the broad appeal of protecting public school funding, since plenty of middle class Americans of all political stripes send their kids to public schools or know someone who is a teacher. There is a possibility that a broad swath of Americans would similarly oppose a nominee for labor secretary whose record suggests that he will trample on labor protections.

This blog originally appeared at Thinkprogress.org on February 14, 2017. Reprinted with permission.

Casey Quinlan is an education reporter for ThinkProgress. Previously, she was an editor for U.S. News and World Report. She has covered investing, education crime, LGBT issues, and politics for publications such as the NY Daily News, The Crime Report, The Legislative Gazette, Autostraddle, City Limits, The Atlantic and The Toast.

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