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Posts Tagged ‘Jobs’

Jobs Report: Change Still Needed

Friday, July 8th, 2016

The June jobs report – a cheery 287,000 new jobs, with unemployment ticking up to 4.9 percent – is cause for both relief and concern.

The relief is that jobs creation picked up after the slowdown of April (revised upward to 144,000) and May (revised downward to 11,000). Even subtracting the 35,000 jobs “created” by striking Verizon workers returning to work, the June report suggests an economy that is continuing to grow and generate jobs.

The continuing concern is the pace of that growth. Jobs creation is slowing, down from a monthly average of 229,000 last year, to 196,000 in the first quarter, and now to 147,000 in the second quarter. Yet over 15 million people are still in need of full-time work. The percentage of Americans of working age who are employed or looking for work is at 62.7 percent, still below pre-Great Recession levels. Average hourly wages ticked up by 2 cents in June, and wage growth remains slow – 2.6 percent over the past year – far below the levels associated with previous recoveries.

This is the last jobs report before the political conventions formally kick off the presidential campaign (which already feels like a recurring and unending nightmare). For Clinton and Democrats, the report provides some relief that the economy isn’t slowing dramatically. For Donald Trump and the Republicans, it provides continued evidence that the economy isn’t soaring. Working families are likely to continue to wonder when they will begin to share in the recovery.

For Democrat Hillary Clinton, these conditions pose particular perils. President Obama will want Democrats to tout his success – record months of private sector jobs growth, over 14 million jobs created since 2010, seven years of economic growth, unemployment down by more than half since the Great Recession he inherited, the strongest economy in the industrial world.

But most Americans aren’t sharing in the rewards. Median family incomes haven’t recovered to pre-recession levels. The wealthiest 1 percent captured a staggering 52 percent of the rewards of growth from 2009 to 2015. And now a weaker Europe post-Brexit and a stronger dollar suggest that our trade deficits will worsen, putting more pressure on jobs and wages.

Americans are looking for change, not for more of the same. Trump will be spouting that message, with a mix of bluster and preposterous policy to support it (build the wall, slash trillions in taxes, renegotiate the debt, and so on). Clinton and Democrats need to make a clear case on how they will change this economy to work for the many – generating more good jobs, higher wages, and a better deal for working people. More of the same offers no way out.

This blog originally appeared in ourfuture.org on July 8, 2016. Reprinted with permission.

Robert Borosage is a board member of both the Blue Green Alliance and Working America.  He earned a BA in political science from Michigan State University in 1966, a master’s degree in international affairs from George Washington University in 1968, and a JD from Yale Law School in 1971. Borosage then practiced law until 1974, at which time he founded the Center for National Security Studies.

Does Moving Jobs Out Of The Country Affect What People Here Get Paid?

Tuesday, May 24th, 2016

Dave JohnsonEconomists are still arguing over whether moving our jobs out of the country affects what the people still here get paid. Yes, really.

For example, Jared Bernstein in The Washington Post looks at different studies of the effect of moving jobs out of the country. One study, by economists David Autor, David Dorn and Gordon Hanson (referred to by Bernstein as “ADH”), was published in January by the National Bureau of Economic Research. The other, by economist Josh Bivens at the Economic Policy Institute, was published in 2013. Both found that moving jobs out of the country hurt the wages of not just the affected workers but everyone in the surrounding area. The question is, does this wage-depressing effect spread outside the local area?

Bernstein writes, “The analytic question is twofold. First, are American workers really hurt by trade competition, and second, if so, are there spillovers to those not directly in competition with imports?”

To understand the difference … in Bivens vs. ADH, consider two towns, one with two businesses, a factory and restaurant, and the other with just a restaurant. In ADH’s findings, the negative spillover, or diffusion, stays mostly in the first town. The factory takes a competitive hit from cheaper Chinese imports. This, of course, directly hurts the blue-collar factory workers, but it also hurts the restaurant workers, both through demand (fewer factory workers showing up for lunch) and supply (more competition for jobs at the restaurant) effects.

In Bivens’s model, and this is the way most economists think about this (which doesn’t, by a long shot, make it correct), the ADH story holds in town one, but town two also gets hit, even though there’s no factory there facing increased global competition. Displaced workers from town one can’t find enough work there so they head for town two, and the added supply effect puts downward pressure among town two’s restaurant staff members.

It comes down to this. Do laid-off workers stay where they are (ADH), which means the wage-depression stays local? Or do they move elsewhere and compete with people who still have jobs (Bivens), thereby depressing wages there as well?

There’s a simple way to test this. Detroit and Flint are just two examples of cities hit by factories that were closed so employers could pay less in other countries but bring the same goods back here to sell in the same stores (so executives and Wall Street shareholders can pocket the differential for themselves).

So did the laid off workers stay put (ADH) or move (Bivens)? Detroit’s population was 1.85 million in 1950. That fell to 713,777 in the 2010 census. Flint’s population was 196,940 in 1960 and fell to 99,763 in 2013.

They moved. The “effect” did not stay in Detroit and Flint. So everyone else’s wages took a hit, too. Multiply what happened in these two cities nationally and you get the picture. If you don’t get the picture, here is the picture:

OK, it isn’t all that simple. ADH do look at “commute zones,” and there are other factors depressing wages. They cite technology, along with the “decline of unions, eroding minimum wages, the rise of nonproductive finance, and especially the persistent absence of full employment labor markets” as factors reducing worker bargaining power and fostering wage stagnation. Whatever. Bernstein writes the following, which is important especially as we head into an election where Donald Trump is using the costs of trade as a main issue:

Still, the main message from ADH, Bivens, and the rest of us who’ve been trying to raise this cost side of the equation for decades is that these costs are real. They’re acute for many people and places and diffuse to some degree for others. Economic platitudes about how trade is always worthwhile as long as the winners can compensate the losers are an insult in the age of inequality, where the winners increasingly use their political power to claim ever more winnings.

Most of us feel the costs of moving so many jobs out of the country (and calling it “trade”) while a few are making a killing from it. Those few are using their political power to keep the rigged game going.

P.S.: It is important to point out that once again the idea of “trade” in elite discussion is entirely about moving American jobs to places where people are paid less and the environment is not protected, in order to reduce “costs.” They don’t actually mean “trade” as in “they sell us bananas and use the money to buy cars” – because who cares?

This post originally appeared on ourfuture.org on May 12, 2016. Reprinted with Permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

On Equal Pay Day, We Could Use Some Sunshine

Thursday, April 14th, 2016

Isaiah J. PooleImagine a workplace where everyone clocked in at 9 a.m. and was paid the same day’s wage for the work they did – but the men could get their pay for the day at 3:20 p.m. and leave, while the women had to stay on the job until 5 p.m. to get the same check the men got an hour and 40 minutes earlier.

That’s another way to think of the gender wage gap – with women earning on average only 79 cents for each dollar a man earns – that Equal Pay Day, April 12, is intended to highlight. The“79 percent clock” is being promoted by the National Partnership for Women and Families and MTV as a way to dramatize that wage inequity. If you are a woman, you can enter the start and end of your workday and the calculator will “show you when 79 percent of your day has passed and you (or your female colleagues) are no longer being paid.”

For an eight-hour workday that starts at 9 a.m., that moment is generally 3:20 p.m. But that’s an average; for women of color, the moment at which a woman is no longer compensated for her day could be as early as 1:24 p.m. for Hispanics or as late as 3:44 p.m. for Asian Americans. For unmarried women, that moment comes at 1:48 p.m. – 60 percent of the day – the same moment as African-American women, according to a report released this week by the Voter Participation Data Center that also includes state-by-state data for unmarried women.

Of course, if we could see men and women leaving workplaces at different hours because they weren’t equally compensated for the work they did, there would be less opportunity for denying that the wage gap is real. But salary information is usually confidential, especially in mid-level jobs and above. Often, women who are being unfairly paid for their work don’t even realize they are being discriminated against.

When discrimination is documented, we get, particularly from conservative and Republican politicians, the usual round of denials and excuses. Comments from the 2016 Republican presidential candidates are typical: “You’re gonna make the same if you do as good a job,” said Donald Trump in 2015, who has also said that determining whether a man and a woman is doing “the same job” is “a very, very tricky question.” Ted Cruz as a senator voted to block a vote on the Paycheck Fairness Act and has dismissed equal pay legislation as “just empowering trial lawyers to file lawsuits.” (Yes, that’s what lawyers do when laws are violated and people are harmed as a result, but I digress.) John Kasich suggested in 2015 that gender pay disparities are “all tied up in skills” and experience.

The Center for American Progress has published “The Top 10 Facts About the Gender Wage Gap,” and several of those facts address the myths perpetuated by the Republican presidential candidates. The wage gap is real, it does appear among men and women with the same education and experience doing similar jobs, and, according to the CAP fact sheet, “38 percent of the gap is unexplainable by measurable factors,” such as women being concentrated in certain lower-wage occupations or being more likely to have to take unpaid leave to care for family members.

Having Congress pass the Paycheck Fairness Act would go a long way toward reinforcing the already existing Equal Pay Act and getting at the root of gender pay discrimination. A key requirement in the law would be that employers would have to disclose pay information to the federal government based on race, sex and national origin. That would make it easier for the government and individual employees to hold employers accountable for violations of the equal pay laws that already exist but are regularly evaded.

Presidential candidate Hillary Clinton highlighted her support of the Paycheck Fairness Act atan event sponsored by Glassdoor.com, where she praised Silicon Valley firms like Salesforce and retailers like Gap for succeeding in closing the gender pay gap in their companies.

Bernie Sanders has likewise been a longtime supporter of the Paycheck Fairness Act, including it as the first item of his 10-point women’s rights agenda.

Like the “79 percent clock” that rings an alarm when a person has reached 79 percent of their work day, the Paycheck Fairness Act allows for an alarm bell to ring when workers are not receiving equal pay for equal work. It would bring pay inequities into the light of day, instead of the darkness in which Republican presidential candidates would rather have this issue continue to fester.

This blog originally appeared at OurFuture.org on April 12, 2016. Reprinted with permission.

Isaiah J. Poole worked at Campaign for America’s Future. He attended Pennsylvania State University and lives inWashington, DC.

Another Explanation Why Moving Jobs Out Of The Country Is ‘Good’ For Us

Tuesday, March 29th, 2016

Dave JohnsonOn Monday, yet another “elite” pundit tells us that moving our jobs and factories and manufacturing ecosystem out of the country is good for us. This time it is Neil Irwin writing at the New York Times’ Upshot, “The Trade Deficit Isn’t a Scorecard, and Cutting It Won’t Make America Great Again.”

The U.S. has had trade deficits every year since the late 1970s, when Wall Street started advertising that “free trade” – moving jobs and factories out of the country — is good for us. Last year we had a goods and services trade deficit of $531 billion, $365 billion of that with China. But services ran a surplus, and if you only measure things we make, the goods deficit was $758.9 billion. On top of that the manufacturingtrade deficit was $831.4 billion, a 13.2 percent increase from 2014.

Imagine our economy if our manufacturers received $831.4 billion in new orders for things they make here. Imagine all the new factories opening, the hiring, the job-training centers, the suppliers booming, the stores near the factories booming, theirsuppliers booming, the taxes paid, and so on. Imagine the raises as employers competed for the workers they would need.

Again, we have had trade deficits every single yearsince the late 1970s, when “free trade” ideology was successfully sold to us. We move jobs and factories and manufacturing ecosystems (the expertise, suppliers, tools) out of the country to places where workers and the environment are exploited – because we were talked into letting that happen so that a few people could pocket the differential.

How were we bamboozled into letting that happen? The Irwin column is one more example.

Trade Deficits Are Good For Us?

Irwin writes:

…eliminating the trade deficit would not, on its own, make America great again, as Mr. Trump promises. And in isolation, the fact that the United States has a trade deficit does not prove that trade agreements are bad for Americans, a staple of Bernie Sanders’s campaign in the Democratic presidential primary. In fact, trying to eliminate the trade deficit could mean giving up some of the key levers of power that allow the United States to get its way in international politics.

Getting rid of the trade deficit could very well make America less great.

The trade-off: Getting rid of the trade deficit might make Wall Street less great because “we” can’t get “our” way telling other countries what to do … But it would mean American employers would have to compete for workers, bidding wages and benefits up.

Irwin continues, explaining even harder how moving jobs out of the country is good for us. Using the example of a trade deficit. Irwin says when there is a trade deficit we get more “stuff” and all the other country gets is our money. Again, last year we bought $831.4 billion more manufactured goods than we sold. Irwin explains this is a free lunch, we got stuff, and the only thing those other countries got was the money to hire millions of people and to maintain and modernize their manufacturing ecosystems, their country’s infrastructure and education.

Irwin explains this is also good for us because China then comes here and buys U.S. companies. “So does a trade deficit mean fewer jobs? It depends on which force is more economically powerful: fewer jobs creating exports or investment dollars flowing into the country.”

Note: In the above, “investment dollars flowing into the country” means buying our companies, land, production capacity, our ability to make a living, out from under us.

Reserve Currency

Irwin further explains the advantage of our trade deficits as being the necessary result of the U.S. dollar’s position as the global reserve currency, and therefore the underpinning of global finance. This is a key part of the equation to get:

There’s no doubt that maintaining the global reserve currency creates costs for the United States, namely a less competitive export industry.

But it also creates a lot of advantages. Lower interest rates and higher stock prices are among them (though they have the downside of also feeding debt-driven booms and busts). Even more important is what the dollar’s prominence in global finance does for America’s place in the world.

Summary: the tradeoff is lower wages for American workers but higher stock prices and low interest rates for America’s investor class. Less for the 99 percent and more for the 1 percent. Less for Main Street, more for Wall Street.

This chart, “Manufacturing vs. Finance as % of U.S. GDP” is from “Why Should We Save American Manufacturing?” by Michele Nash-Hoff. It shows how that trade-off has affected our economy.

Manufacturers and therefore workers used to have more power in our economy. Then Wall Street ascended, and here we are.

Advantages

There are, in fact, real advantages to the U.S. from our reserve currency status. Irwin explains,

It helps ensure that the United States can afford to finance wars, and it gives the government greater ability to fight recessions and panics. A country experiencing a banking panic will see money sent out of the country, causing its currency to fall and its interest rates to rise. All that limits a government’s options for fixing the problem. In 2008, when the United States experienced a near collapse of the banking system, the opposite happened.

But it’s not just economics. “A lot of the benefits of having the reserve currency are more on the foreign policy side than the economic,” said Jennifer M. Harris, a senior fellow at the Council on Foreign Relations and author of a coming book, “War by Other Means,” on the use of economic tools in foreign policy.

The centrality of the dollar to global finance gives the United States power on the global stage that no other country can match.

This is all for real and does bring positive results for all of us in various ways. But the power imbalances of Wall Street (capital) vs. Main Street (labor) have reached a point of excess where the power of our investor class has become so dominant over our working people that more and more Americans are struggling just to keep from falling behind – and failing. Ask an American voter if she or he would rather have some money for retirement, good schools, a good infrastructure and well-functioning public services, or a strong financial sector able to threaten countries with military force to get what they want. They’ll vote for retirement security, infrastructure and the rest every time. And they’re just about ready to, even if that promise comes in the form of Donald Trump.

This blog originally appeared at ourfuture.org on March 29, 2016.  Reprinted with permission.

Dave Johnson has more than 20 years of technology industry experience. His earlier career included technical positions, including video game design at Atari and Imagic. He was a pioneer in design and development of productivity and educational applications of personal computers. More recently he helped co-found a company developing desktop systems to validate carbon trading in the US.

When a Coin Drops in Asia, Jobs Disappear in Detroit

Tuesday, March 8th, 2016

Leo Gerard

Last year, free trade hammered Michigan’s 11th Congressional District, located between Detroit and Flint, killing manufacturing, costing jobs and crushing dreams.

It’s not over, either. Another 11th District company, ViSalus Inc., told the state it would eliminate 87 jobs as of last Saturday, slicing its staff by nearly 400 since 2013 when ViSalus was the second-largest direct sales firm in the state.

The numbers are staggering. The Economic Policy Institute (EPI) released a report last week showing that America’s $177.9 billion trade deficit in 2015 with the 11 other countries in the proposed Trans-Pacific Partnership (TPP) trade deal caused 2 million job losses nationwide.

This trade deficit reduced jobs in every U.S. congressional district except two, EPI said, but Michigan’s 11th had the ignoble distinction of suffering more as a share of total employment than any other district in the country. It was 26,200 jobs. Just in 2015. It was tech workers in January and teachers in July and tool makers in August and auto parts builders in October.

Manipulation of money killed those jobs. It works like this: Foreign countries spend billions buying American treasury bonds. That strengthens the value of the dollar and weakens foreign currencies. When a country’s currency value drops, it acts like a big fat discount coupon on all of its exports to the United States. And it serves simultaneously as an obscene tax on all U.S. exports to that country.

Among the TPP countries, Malaysia, Singapore and Japan are known currency manipulators, and Vietnam appears to be following their example. EPI found that currency manipulation is the most important cause of America’s massive trade deficits with TPP countries. Trade deficits mean products are shipped to the United States rather than made in the United States. The math is simple. A drop in Asian currency means a drop in U.S. jobs.

EPI looked at what types of imports the 11 countries sent the United States last year to determine what types of industry and jobs America lost as a result. The overwhelming majority was motor vehicles and parts. That’s why Michigan was the biggest loser of all of the states. The auto sector was followed by computer and electronic parts ­– including communications, audio and video equipment – and primary metals – including basic steel and steel products.

In addition, EPI found job losses in industries that serve manufacturers, like warehousing and utilities, and services like retail, education and public administration.

Each of these kinds of losses occurred last year in Michigan’s 11th district, located in the heart of America’s car manufacturing country in southwestern Oakland County and northwestern Wayne County, where Detroit is parked just outside the district’s lines.

In January, in Michigan’s 11th, Technicolor Videocassette of Michigan, Inc., a subsidiary of the French multimedia giant Technicolor SA, laid off 162 workers in Livonia. That same month, what was once a vibrant chain of cupcake stores called Just Baked shuttered several shops, putting an untold number of bakers and clerks in the street, some with last paychecks that bounced.

In February, the Sam’s Club store in Waterford closed, throwing 122 in the street. Waterford municipal official Tony Bartolotta called it another “nail in the coffin” for the township’s east side.

In April, Frito-Lay told 17 workers that they’d lose their jobs later that year when it closed its Birmingham warehouse.

In July, 231 teachers in the Farmington Public Schools learned they would not have work in the new school year. One of them, 25-year-old Val Nafso, who grew up in Farmington, told the Oakland Press, “I hope things change where people who are passionate about teaching can enter the profession without 1,000 people telling them “Don’t do it…get out now.”

In August, DE-STA-CO, a 100-year-old tool manufacturer, told Michigan it would end production in Auburn Hills, costing 57 workers their jobs.

In October, Waterford laid off 39 firefighters. The township had received a $7.6 million grant in 2013 to hire them, but just couldn’t come up with local funds to keep them. That happens when factories close and bakeries shut down. Township officials told concerned residents they’d looked hard at the budget, “We started projecting out for 2017 and it flat lined,”Township Supervisor Gary Wall told them.

Later that month, FTE Automotive USA Inc., an auto parts manufacturer, told Michigan it would close its Auburn Hills plant and lay off 65 workers.

In the areas around Michigan’s 11th, horrible job losses occurred all last year as well, which makes sense since EPI found 10 of the top 20 job-losing districts in the country were in Michigan.

Ford laid off 700 workers at an assembly plant in Wayne County in April. GM eliminated a second shift, furloughing 468 workers at its Lake Orion Assembly Plant in Oakland County in October.

Auto supply company Su-Dan announced in September it would close three factories in Oakland County by year’s end, costing 131 workers their jobs.

In October, a division of Parker Hannifin Corp. in Oxford, Oakland County, that manufactured compressed air filters told its 65 workers they wouldn’t have jobs in 2016. “There’s a lot of people there that are paycheck to paycheck, and it’s going to hurt them,” Michelle Moloney, who worked there 25 years, told a reporter from Sherman Publications.

The threat of the TPP is that it does absolutely nothing to stop this job-slaughter. Lawmakers, public interest groups, manufacturers, and unions like mine all pleaded with negotiators to include strong provisions in the deal to punish currency manipulators. They didn’t do it.

They included some language about currency manipulation. But it’s not in the main trade deal.  And it’s not enforceable.

Swallowing the TPP would be accepting deliberately depressed currency values in Asian trading partner countries and a permanently depressed economy in the U.S. car manufacturing heartland.

It’s the TPP that should disappear. Not Detroit.

This blog was originally posted on ourfuture.org on March 8, 2016. 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.

The Economy Adds 242,000 Jobs in February, and Unemployment Remains Unchanged at 4.9%

Monday, March 7th, 2016
Kenneth Quinnell

The U.S. economy added 242,000 jobs in February and unemployment was 4.9%, unchanged from January, according to figures released this morning by the U.S. Bureau of Labor Statistics. This continues the record string of months with job growth.

In response to the February jobs numbers, AFL-CIO Chief Economist William Spriggs tweeted the following:

 

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Last month’s biggest job gains were in health care and social assistance (57,000), retail trade (55,000), food services and drinking places (40,000), private educational services (28,000) and construction (19,000). The mining industry continued to see losses. According to BLS, other major industries, including manufacturing, wholesale trade, transportation and warehousing, financial activities, professional and business services, and government, showed little change over the month.

Among the major worker groups, the unemployment rate for adult men (4.5%), adult women (4.5%), teenagers (15.6%), whites (4.3%), blacks (8.8%), Asians (3.8%) and Latinos (5.4%) showed little or no change.

The number of long-term unemployed (those jobless for 27 weeks or more) was essentially unchanged at 2.2 million in January and accounted for 27.7% of the unemployed.

This blog originally appeared in aflcio.org on March 4, 2016. Reprinted with permission.

Kenneth Quinnell is a long time blogger, campaign staffer, and political activist.  Prior to joining AFL-CIO in 2012, he worked as a labor reporter for the blog Crooks and Liars.  He was the past Communications Director for Darcy Burner and New Media Director for Kendrick Meek.  He has over ten years as a college instructor teaching political science and American history.

Federal government is the biggest low-wage employer in South Carolina

Monday, February 29th, 2016

Many workers whose jobs are funded by the federal government don’t work for the federal government—they work for companies with federal contracts. And many of those jobs don’t pay a living wage, effectively making the government a low-wage employer. In South Carolina, it’s actually the largest low-wage employer in the state, a new analysis by Good Jobs Nation finds:

These low-wage jobs are in occupations such as home healthcare aides (4,336), construction (1,185) security guards (876) and food service workers (444). And, just as Demos found for the nation as a whole, the 30,000 low-wage jobs subsidized by federal funding streams in South Carolina make the U.S. government the single largest creator of low-wage private sector jobs in the State, outranking Wal-Mart and McDonald’s combined, which employ an estimated 20,600 and 8,900 low-wage workers respectively within the State.

President Obama signed an executive order raising the minimum wage for federal contract workers to $10.10 an hour in 2014, but that is going into effect gradually. And $10.10, while a big improvement over the federal minimum wage of $7.25 an hour, is not enough.

This blog originally appeared in dailykos.com on February 27, 2016. Reprinted with permission.

Laura Clawson has been a Daily Kos contributing editor since December 2006 and Labor editor since 2011.

 

Wal-Mart Killed At Least 400,000 Jobs In A Dozen Years, While The Waltons Got Richer

Friday, January 22nd, 2016

If you want to know why a political revolution is necessary (and why the status quo’s most intellectually fraudulent campaign in recent Democratic primaries is such a threat to working people), you need only check out this new report from our friends at the Economic Policy Institute. Wal-Mart (that would be the board the status quo candidate sat on without uttering a peep while millions of women were discriminated against and the Waltons pursued their middle-class killing business plan) essentially obliterated, conservatively, 400,000 jobs in a decade or so.

Here’s how:

This paper updates earlier work (Scott 2007) to provide a conservative estimate of how many jobs have likely been displaced by Chinese imports entering the country through Wal-Mart:

  • Chinese imports entering through Wal-Mart in 2013 likely totaled at least $49.1 billion and the combined effect of imports from and exports to China conducted through Wal-Mart likely accounted for 15.3 percent of the growth of the total U.S. goods trade deficit with China between 2001 and 2013.

  • The Wal-Mart-based trade deficit with China alone eliminated or displaced over 400,000 U.S. jobs between 2001 and 2013.

  • The manufacturing sector and its workers have been hardest hit by the growth of Wal-Mart’s imports. Wal-Mart’s increased trade deficit with China between 2001 and 2013 eliminated 314,500 manufacturing jobs, 75.7 percent of the jobs lost from Wal-Mart’s trade deficit. These job losses are particularly destructive because jobs in the manufacturing sector pay higher wages and provide better benefits than most other industries, especially for workers with less than a college education.

  • Wal-Mart has announced plans to create opportunities for American manufacturing by “investing in American jobs.” To date, very few actual U.S. jobs have been created by this program, and since 2001, the growing Wal-Mart trade deficit with China has displaced more than 100 U.S. jobs for every actual or promised job created through this program.

China has achieved its rapidly growing trade surpluses by manipulating its currency: it invests hundreds of billions of dollars per year in U.S. Treasury bills, other government securities, and private foreign assets to bid up the value of the dollar and other currencies and thereby lower the cost of its exports to the United States and other countries. China has also repressed the labor rights of its workers and suppressed their wages, making its products artificially cheap and further subsidizing its exports. Wal-Mart has aided China’s abuse of labor rights and its violations of internationally recognized norms of fair trade by providing a vast and ever-expanding conduit for the distribution of artificially cheap and subsidized Chinese exports to the United States. [emphasis added]

And:

Since Wal-Mart’s exports to China were negligible, the rapid growth of its imports had a proportionately bigger impact on the U.S. trade deficit and job losses than overall U.S. trade flows with China (since the rest of U.S. trade with China does include significant U.S. exports to that country). On average, each of the 4,835 stores Wal-Mart operated in the United States in fiscal 2014 (Wal-Mart Stores Inc. 2014) was responsible for the loss of about 86 U.S. jobs due to the growth of Wal-Mart’s trade deficit with China between 2001 and 2013.

So, if for some reason, you shop at Wal-Mart, think about each of those workers whose job you helped eliminate by supporting this scar on the economy. While middle-class jobs disappear and people become even more impoverished, forcing them to shop at Wal-Mart, the Waltons became the richest family in the country, with $149 billion in wealth for six people.

Be my guest: continue to believe the fraudulent rhetoric coming from the status quo. Continue to live in a dream world and ignore the reality, and the record, continue to embrace the most amazing individual cognitive dissonance imaginable and fawn over a fraud in complete ignorance of the facts laid out.

And, then, don’t be surprised and weep when Wal-Mart grows, poverty widens and nothing changes.

This blog originally appeared in workinglife.org on December 22, 2016. Reprinted with permission.

Jonathan Tasini is the president of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years.  Hiss goal is to find the “white spaces” that need filling, the places to make connections and create projects to enhance the great work many people do to advance a better world. He is also publisher/editor of Working Life.

Obama administration cracking down on bosses who use temp workers to dodge labor laws

Thursday, January 21st, 2016

Businesses don’t just use temp staffing agencies to add workers for short periods when they need extra hands. Staffing agencies can also serve the valuable (to crappy employers) purpose of dodging responsibility. “That person may work in our business on our terms, but the staffing agency is their employer, so we’re not responsible for violating labor laws to exploit them,” is how the dodge basically goes. Now, the Department of Labor is taking steps against that, issuing guidelines on when the company using the staffing agency to hire temp workers should be considered a joint employer that’s responsible for the people working in its facilities.

“I think the majority of noncompliance that we see is people just not getting what the law is, and what their responsibilities are under it,” [Department of Labor Wage and Hour Division director David] Weil said in an interview. “We also find cases of people who are clearly playing games, and clearly trying to shift out responsibility, and often have structured things in a way that lead towards more noncompliance.”

Weil’s division has stepped up its proactive enforcement of situations where companies are functionally controlling the workers they order up from labor providers — and broadcasts its enforcement of egregious violations. Back in October, for example, investigators found that temp workers at a snack food producer in New Jersey were cheated out of overtime wages, and ordered the company to pay back wages, damages, and civil penalties.

That’s the most typical form of joint employment — a “vertical” arrangement, with one company hiring another, as the guidance describes. But joint employment can also be “horizontal,” when a worker might employed by two subsidiaries of the same company, but they never get overtime because their hours are tracked separately.

Business groups and congressional Republicans are predictably pissed that the Obama administration would have the nerve to suggest that employers follow the law, with House Republicans pointing out that the Department of Labor talked to the National Labor Relations Board, which is also cracking down on joint employer issues.

Low-road businesses have found a lot of ways around laws protecting workers, from these joint employer dodges to misclassifying workers as independent contractors to deny them minimum wage and overtime protections, unemployment insurance, and more. And every time the Obama administration cracks down, it’s a reminder of what’s at stake this November. The next president won’t just argue with Congress or even appoint Supreme Court justices. The next president will make the appointments that determine whether the Department of Labor is trying to make sure workers get paid for the hours they work or is looking for ways to let bad bosses off the hook.

This blog originally appeared in dailykos.com on January 20, 2016. Reprinted with permission.

Laura Clawson has been a Daily Kos contributing editor since December 2006 and Labor editor since 2011.

Woman sues Walmart after being told to 'choose between her career and her kids,' then fired

Monday, January 18th, 2016

Women filing discrimination lawsuits against Walmart are nothing new. Walmart firing people for questionable and controversial reasons is also nothing new. Now a woman is suing the low-wage retail giant, saying she was fired after complaining about discriminatory treatment. Specifically, Rebecca Wolfinger says her boss told her she had to “choose between her career and her kids.”

Wolfinger’s suit focuses on what she claims was her mistreatment while working as a shift manager. She was being required to work seven days a week when she received the “career or kids” threat, she contends.

Other male shift managers weren’t on a seven-day work schedule, Wolfinger claims. Her February 2012 firing occurred after she reported her boss’ comment to a company human resource officer, the suit states.

Wolfinger was officially fired, she says, for selling Pampered Chef outside of work—but coworkers who engaged in similar activities weren’t fired. And of course a sophisticated company like Walmart doesn’t admit to having fired someone for complaining about illegal discrimination.

Several years ago, 1.5 million women who worked or had worked at Walmart attempted a class action lawsuit against the company, only to have the Supreme Court say that “[e]ven if every single one of these accounts is true, that would not demonstrate that the entire company operate[s] under a general policy of discrimination.” That’s despite evidence like this:

Many female Walmart employees have been paid less than male coworkers. In 2001, female workers earned $5,200 less per year on average than male workers. The company paid those who had hourly jobs, where the average yearly earnings were $18,000, $1.16 less per hour ($1,100 less per year) than men in the same position. Female employees who held salaried positions with average yearly earnings of $50,000 were paid $14,500 less per year than men in the same position. Despite this gap in wages, female Walmart employees on average have longer tenure and higher performance ratings.

Doubtless all just a coincidence, though. Just like Rebecca Wolfinger was coincidentally fired for something that other workers did after she reported being discriminated against.

This blog originally appeared in dailykos.com/blog/labor on January 13, 2016. Reprinted with permission.

Laura Clawson is the Daily Kos contributing editor and has been since December 2006.  She has also been the labor editor since 2011.

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