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Posts Tagged ‘Minimum Wage’

Two Wins for Bangladesh Garment Workers, But The Fight Isn’t Over

Thursday, May 16th, 2013

David MobergWith a death toll of 1,127, the April 24 collapse of the Rana Plaza factory building in Bangladesh has earned the shameful distinction of being the sixth-worst worst industrial disaster in history.

There’s plenty of shame to go around—and not just for the building owner and factory operators who ignored clear warnings of danger. High on the dishonor roll are the multinational apparel companies who subcontract work to thousands of local Bangladeshi factories crammed into similar deathtraps. The government of Bangladesh, dominated by representatives of the nation’s largest industry, textiles, shares blame for its fecklessness and corruption.

U.S. government officials and members of Congress are also at fault. They have failed to insist on safe standards for production of goods in Bangladesh (four-fifths of whose garment output goes to the U.S. and the European Union) and continued to grant it trade preferences.

But in a glimmer of hope, the outcry over the scale of the carnage in Rana Plaza has begun to spur some long-overdue reforms.

After relentless international media coverage and protests and strikes in and around Dhaka, the Bangladeshi government announced yesterday that it was convening a panel to raise the minimum wage in the garment industry, currently the lowest in the world (around $38 a month).

And today, the government said it would make unionization less difficult in the garment sector. Currently, for a union to be certified, it must win support from 30 percent of workers, and the government gives the list of workers who sign up to the employer for verification. At that point, employers often intimidate or fire supporters to reduce union support. Bangladesh’s minister of textiles says that in the future, bosses will not see the list of signatories.

But the truth is that even government action and unionization are likely to be inadequate on their own. Pressure for cheaper production from the multinational corporations can overwhelm or corrupt governments and unions. That’s why another development spurred by the factory collapse is perhaps the most promising. Seven companies have acceded to calls by Bangladeshi garment-worker associations for a binding and enforceable fire and safety agreement.

Two initial signatories to the safety plan, PVH—parent of Calvin Klein and Tommy Hilfiger brands—and the German clothing company Tchibo, were joined today by five more big-brand companies: H&M, the Swedish firm that is the largest buyer of Bangladesh apparel; Inditex, parent of the Spain-based international retailer Zara; Primark, a UK firm that sourced products from one of the five Rana Plaza factories; the big British super-store chain Tesco; and the Dutch clothing company C&A. Now that it has passed the required four-signature threshold, the plan will likely go into effect.

The global union federations UNI and IndustriALL played a major role in bringing the primarily European companies on board. Workers at most of these companies in their home countries are unionized, and by taking advantage of relationships with such employees’ unions, the global federations have more clout than they do with typically non-union U.S. companies. GAP, Wal-Mart, Sears and JC Penney, for instance, have resisted signing the fire safety agreement, claiming it would be too expensive and would expose them to lawsuits.

This means that pressure on U.S. corporations from both citizens and consumers remains critical.

And for those who doubt that such pressure can be effective, a recent victory in Indonesia shows that U.S. crusades for worker justice in poor countries do work.

Just a day before the Rana Plaza collapse, United Students Against Sweatshops announced victory in a two-year campaign to force sportswear giant Adidas to pay legally mandated severance compensation to 2,700 Indonesian workers. The workers lost their jobs in 2010 when the Korean owner of PT Kizone, a contractor in Indonesia manufacturing shoes for Adidas, fled the country and abandoned his employees.

Labeling the brand “Badidas” for its refusal to pay the severance owed, USAS built the largest collegiate boycott of a major sportswear company in the organization’s 15-year history. By the time negotiators reached a settlement of the dispute that satisfied the workers, 17 colleges and universities had ended their contracts for producing college logo products with Adidas, and the University of Wisconsin was pursuing legal action against Adidas for allegedly breaking its anti-sweatshop contract with the university.

The victory was not only important as one of the largest global “wage theft” restorations, presumably—since the exact terms remain secret—providing close to the $3.4 million owed to 2,700 workers from all the major contracting firms (Adidas, Nike and the Dallas Cowboys).

More important, this campaign took a giant step towards establishing that multinationals must pay the price when their contractors evade legal obligations.

That precedent was first set in 2010, when USAS pressured Nike to assume responsibility for severance pay owed to 1,400 Honduran workers at a contractor that closed shop and abandoned them. Nike eventually paid a share of the severance obligations to the Indonesian workers, even as the number two company in sportswear, Adidas, fought on against USAS.

Now that Adidas, too, has taken responsibility, “we see this victory as building on the Nike precedent in the industry and setting a new norm in student apparel,” says Garrett Strain, USAS campaign coordinator.

If that norm—of deep-pocketed major corporations accepting responsibility for the rights and well-being of workers at their overseas contractors—wins out, the anti-sweatshop campaign will have established a moral principle internationally that is rarely followed or enforced in the United States.

There are sound reasons why companies like Adidas and Nike should pay up in a case like this. Although no one knows for sure why the Korean owner fled, he may have been pressured by the big brands to produce at such a low price that he would lose money, so he decided to take what he could and get out, according to Scott Nova, executive director of the Worker Rights Consortium. WRC is an independent investigative operation set up by universities who signed on to the USAS-backed code against sweatshop production of collegiate gear.

The big brands “are directly responsible,” Nova said. “A responsible company would set aside a fund for severance pay, but not doing so takes something out of labor costs. The brands and retailers know the cost of making a garment, but they’re happy to accept the lowest price. They know what they’re paying.”

Nova sees the big Indonesian victory as part of a “strategic moment that creates openings for much broader change, but at the same time we know this is an enormously powerful and ruthless industry. No one should have any illusions that the work is getting easier.”

Thousands of Bangladeshi workers—the injured, families of the dead, workers in their own dangerous sweatshops—have no such illusions. While it will not console them in their grief, the victory wrought by U.S. students in pinning responsibility on America’s big-brand companies could help pave the way to better protections for them as well.

This article was originally posted on Working in These Times on May 13, 2013.  Reprinted with Permission.

About the Author: David Moberg is a senior editor of In These Times and has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy.

Labor and Allies, Surprised By Obama’s $9 Minimum Wage Proposal, Scramble to Coordinate

Wednesday, March 20th, 2013

photo_86504WASHINGTON, DC—When President Obama proposed raising the federal minimum wage from $7.25 to $9 an hour in his State of the Union speech on February 12, the call came as a surprise to many wage-increase advocates.

Jen Kern, the minimum wage campaign coordinator at the National Employment Law Project, one of the largest advocacy groups on wage issues, says that her organization was consulted only “two hours ahead” of the State of the Union speech.

“We had been pushing him on this for years, since he mentioned it in his campaign in 2008, and never really heard anything from him,” says Kern. “So, yeah, we were surprised.”

“We were given little advance notice,” says Bill Samuel, government affairs director for the AFL-CIO, labor’s main coalition. “I think this is a strategy that the White House has often employed before a State of the Union. I believe that was intentional. It wasn’t a bad motive. I think they decided this should be good news.”

In another indication that the president didn’t consult with allies before selecting the $9-an-hour figure, Congressional Democrats Sen. Tom Harkin (Iowa) and Rep. George Miller (Calif.), who proposed an increase to $9.80-an-hour in last year’s legislative session, were already at work on a new bill to raise the minimum to $10.10. They issued a joint response to the State of the Union applauding the president’s move but questioning the $9-an-hour figure, saying: “While we believe the president’s proposal is lower than what is needed, there is no question that last night he threw the doors open for a robust discussion on the importance of raising the minimum wage.”

Harkin and Miller, who serve as the ranking Democrats on the Senate and House committees with jurisdiction over wage increases, officially introduced their $10.10 proposal on March 5. According to a press release issued by Harkin’s office, “If the minimum wage had kept up with inflation since 1968, it would be worth approximately $10.56 per hour today… Increasing the minimum wage to $10.10 per hour will increase GDP by nearly $33 billion over the course of three years as workers spend their raises in their local businesses and communities.”

The $1.10-an-hour difference between the president’s proposal and Congressional Democrats’ plan would have a cumulative effect. Under both plans, once the minimum wage rate is set, it will thereafter be adjusted as a percentage of inflation, and is unlikely to make a jump as big as $1.10 an hour in one year.

The lack of coordination between labor, the White House and Congressional Democrats appears to continue in the wake of the Miller-Harkin bill. The AFL-CIO isn’t sure whether the White House supports the increase to $10.10 an hour. “I have not heard anything positive or negative. It’s my assumption they are fine with a higher number if it’s possible in the House or Senate,” says the AFL-CIO’s Bill Samuel.

The White House would not respond to inquiries about whether it supports the Miller-Harkin proposal. However, in a blog post for The Huffington Post on Thursday, Acting Secretary of Labor Seth D. Harris reiterated the president’s call to raise the minimum wage to $9 an hour. White House spokesperson Matthew Lehrich told In These Times by email, “The President applauds Senator Harkin, Representative Miller for getting this debate started in Congress. He stands ready to work with Congress to pass legislation to increase the minimum wage as soon as possible—both parties should agree that hard-working families should not be living below the poverty line.”

Meanwhile, four weeks after the State of the Union, the President’s grassroots political advocacy arm, Organizing for America, has yet to meet with the AFL-CIO to discuss how to coordinate mobilizations on the state level to win the minimum wage fight.

“We haven’t talked specifically about their strategy, but we will soon,” says Samuel. “We have a meeting coming up with OFA where I am sure this will be discussed, but we have not had any formal meetings. There has been some talk about using their grassroots structure of OFA and we are certainly preparing to use our grassroots structure.”

Organizing for America did not respond to request for comment.

Despite the apparent lack of coordination so far, labor is optimistic that the president will genuinely push for a minimum wage increase.

“The president is taking on the conservatives and most of the Republican Party to do this,” says Samuel. “It’s always exciting to be in a fight that certainly if we win can help so many people. I think they are serious about it.”

This article was originally posted on the Working In These Times on March 11, 2013. Reprinted with Permission.

About the Author: Mike Elk is a Pittsburgh native and labor journalist for In These Times. His investigative work has been cited on the front page of the New York Times and debated by Whoopi Goldberg and Barbara Walters on ABC’s The View. Elk won a Sidney Award for his coverage of how corporations crafted legislation to exempt prison labor from U.S. minimum wage laws.

New NELP Study Shows that ALEC Is Engaged in Widespread Campaign to Suppress Wages

Tuesday, March 12th, 2013
Kenneth Quinnell

Kenneth Quinnell

new report from the National Employment Law Project (NELP) shows that the American Legislative Exchange Council (ALEC) is engaged in a widespread campaign to suppress the wages of already low-wage workers. ALEC has created model legislation that is designed to weaken or repeal state minimum wage laws, reduce minimum wages for young workers and tipped workers, weaken overtime compensation rules and stop local governments from passing living wage ordinances.

The report found that since January 2011, 31 state legislatures have introduced 105 bills that attack wage standards at the state or local level. More than half of those bills were directly sponsored or co-sponsored by legislators with ties to ALEC. The report also warns that increased conservative strength in state legislatures means that working families face a stronger threat than they have in recent years.

NELP describes ALEC’s agenda:

The American Legislative Exchange Council—a “forum for state legislators and private sector leaders to discuss and exchange practical, state-level public policy issues”—has been the subject of substantial criticism over the past year for its promotion of controversial voter ID legislation, “Stand Your Ground” laws and measures to roll back environmental protections. In recent years, however, ALEC-affiliated state legislators from across the country have also conducted a parallel effort to weaken wage and workplace standards designed to protect the earnings and economic security of the country’s lowest-paid workers.

Although ALEC is trying to influence state legislatures to suppress wages, working families in 24 states are building momentum across the United States to raise the minimum wage. Read more about efforts to raise the federal minimum wage here.

This article was originally posted on the AFL-CIO on March 6, 2013. Reprinted with Permission.

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist whose writings have appeared on AFL-CIO, Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.

Corporate Profits Hit Record High While Worker Wages Hit Record Low

Tuesday, December 4th, 2012

A constant conservative charge against President Obama is that he is inherently anti-business. However, businesses keep defying the storyline by making larger and larger profits, rebounding nicely out of the Great Recession.

In the third quarter of this year, “corporate earnings were $1.75 trillion, up 18.6% from a year ago.” Corporations are currently making more as a percentage of the economy than they ever have since such records were kept. But at the same time, wages as a percentage of the economy are at an all-time low, as this chart shows. (The red line is corporate profits; the blue line is private sector wages.):

 

Corporations made a record $824 billion in profits last year as well, while the stock market has had one of its best performances since 1900 while Obama has been in office.

Meanwhile, workers are getting the short end of the stick. As CNN Money explained, “a separate government reading shows that total wages have now fallen to a record low of 43.5% of GDP. Until 1975, wages almost always accounted for at least half of GDP, and had been as high as 49% as recently as early 2001.”

This post was originally posted on Think Progress on December 3, 2012. Reprinted with Permission.

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

Typo stands between Albuquerque workers and a minimum wage increase

Thursday, September 13th, 2012

Let the uncertain fate of a proposal to raise Albuquerque, New Mexico’s minimum wage be a lesson to you: Proofreading matters. Groups pushing to raise the minimum wage from $7.50 to $8.50, with tipped workers receiving 45 percent of that, collected 25,000 signatures, more than 12,000 of which were certified by the city clerk. But they apparently didn’t proofread what they gathered signatures on.

The signatures were gathered for a proposal reading: “Starting in 2013, employers of tipped employees like waitresses and waiters be paid at least 45 percent of the minimum wage in cash wages from their employers.” Did you catch that? “Employers” and “employees” are reversed at the beginning of the sentence, suggesting that restaurant owners would be the ones getting paid.

With restaurant owners typically among the biggest opponents of raising the minimum wage (or offering paid sick leave, or anything else that benefits workers), if the measure passes as written, or if the typo is corrected and the measure passes, lawsuits against it taking effect are a guarantee. City law does in fact allow for typos to be fixed, but that wouldn’t necessarily prevent a lengthy legal battle.

The typo is not the only confusion regarding the measure:

The city charter says once the petitions for an initiative like the one OLE used are submitted, the city clerk has 10 days to certify the signatures. After that, city council has two weeks to act on it or the proposal goes on a ballot 90 days from when it was submitted.

No action was taken at Wednesday’s city council meeting so according to the charter, voters should get a say before November 9.

However under state law, city council needs to pass an election resolution to put the issue on the ballot, something it hasn’t done yet.

Whatever it takes, this is a fight worth having. Raising the minimum wage is popular, it’s the right thing to do for workers struggling to make ends meet, and it definitely doesn’t hurt job creation—in fact, evidence suggests it helps job creation. Nationally, the workers who benefit from a minimum wage increase are overwhelmingly at least 20 years old, with majorities being women and full-time workers.
And if it’s a fight worth having, it’s worth proofreading. Twice, if necessary.

This blog originally appeared in Daily Kos Labor on September 7, 2012. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos. She has a PhD in sociology from Princeton University and has taught at Dartmouth College. From 2008 to 2011, she was senior writer at Working America, the community affiliate of the AFL-CIO.

Higher minimum wages have been good for jobs in New England

Tuesday, August 28th, 2012

Laura Clawson

Here’s one more study that opponents of raising the minimum wage will ignore when they argue that a minimum wage increase would slow job creation. The Massachusetts Budget and Policy Center has looked at minimum wage rates and job creation across New England. Every state in New England has a different minimum wage, ranging from the federal rate of $7.25 in New Hampshire to a high of $8.46 in Vermont. And guess what? States that increased their minimum wages by more and had higher minimum wages did better, not worse, at keeping jobs during the recession and regaining them after the recession. That’s not to say that a higher minimum wage is the only explanation for those results:

Ultimately, a variety of factors affect job growth, and the recession has affected states in different ways. The different rates of employment loss and growth in New England states during this period was likely the result of a variety of factors, but the data do not provide any evidence that higher minimum wages prevent job growth.

This isn’t the first study that’s shown no negative effect, or even a positive outcome, of a higher minimum wage on employment. It won’t be the last. But since opponents of an above-poverty-level minimum wage are much more concerned with profit margins at Walmart and Taco Bell than with creating or losing jobs, the “higher minimum wage is a job-killer” canard isn’t going away any time soon.

(Via We Party Patriots)

This blog originally appeared in Daily Kos Labor on August 20, 2012. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos. She has a PhD in sociology from Princeton University and has taught at Dartmouth College. From 2008 to 2011, she was senior writer at Working America, the community affiliate of the AFL-CIO.

What is poverty?

Monday, August 20th, 2012

Mark E. AndersonWhat is poverty? According to the federal government poverty for a family of four is $23,050 a year. The federal minimum wage is $7.25 an hour, which, if you work a 40-hour week, 52 weeks a year, you would earn $15,080 a year. The average rent cost in the United States is $808 (PDF) a month or $9,696 a year. If you use the thriftiest numbers provided by the USDA (I am assuming this is not a healthy diet) groceries for a family of four averages between $507 and $582 (PDF) a month depending on the age of the children. That is $6,084 to $6,984 a year. Food and lodging for this family of four costs between $15,780 and $16,680 a year. I have not even gotten to childcare costs yet, which for a child who is around four years old ranges $3,900 to $15,540 a year (PDF) a year. There is help for this family of four though, the average amount of SNAP benefits available to a family of four? $496 a month, not enough to pay for all of their groceries, however, it is enough to prevent starvation. Even with SNAP benefits it is obvious that in the family of four only one of the adults can work, as the other has to stay home with the children. I cannot imagine how a single parent at this level of income could keep it together let alone get out of poverty.

Federal Poverty Levels 2012

Those are the numbers that define poverty in America; however, the definition of poverty goes much further than those numbers. The American Heritage dictionary defines poverty as, “the state of being poor; lack of the means of providing material needs or comforts.”

Let that soak in for a minute, “lack of the means of providing material needs or comforts.” Things like food, shelter, and stability. You cannot get sick, you cannot take a day off to go to the doctor, you cannot afford to go to the doctor at all. If the price of food goes up you have to take away from some other part of your budget. But what takes the hit? Is your landlord going to allow you to pay less rent? How do you buy school supplies? How do you get to and from work? None of the figures above include transportation.

Imagine living in a world where you don’t know if you have enough money for your next meal, going without food so that your children may eat. Worrying about scraping together enough money to take your child to the doctor for things that most of us take for granted like immunizations. The feelings of inadequacy when your child wants nothing more than a candy bar and you cannot afford it. How grateful you feel when a stranger hands you a dollar bill to buy that candy bar and how miserable it makes you feel inside that you must depend on the kindness of strangers for such small pleasures in life. How hard birthdays and Christmases are when you cannot afford to purchase even the smallest of gifts (especially in our consumer-driven society).

According to conservative mouthpieces if you have a color TV and a refrigerator you are not poor, and several of the memes that exist today say that if you have a newer car and a cell phone you are not poor, discounting that you may have purchased that newer car or cell phone before you lost your job and lost your home. That you need to be drug tested before you can receive any kind of benefits. The poor are second-class citizens who cannot be trusted with the meager benefits that are provided to them. They should, “just get a job,” and “pull themselves up by their bootstraps.” Great advice; however, if you are making minimum wage, you don’t have bootstraps to pull up.

The same people who refuse to help the poor because they are, “lazy and shiftless,” have no problem giving a tax break, that is larger than what someone making minimum wage earns in a year, to someone who makes their money through investments, in other words, a tax break to someone who has never worked a day in their lives. Only because they have a higher social status they deserve what amounts to a government handout in the form of a tax break, while someone working for minimum wage every single day does not deserve a hand up.

While I am not a religious man I find it hypocritical that the people who claim to follow Christianity do not follow some of its core teachings. When my mom forced me to go to confirmation classes at Bashford United Methodist Church in my youth I primarily went through the motions just to make her happy; however, one quote that Rev. Rick Pearson taught me has stuck with me all these years, “If anyone has material possessions and sees his brother in need but has no pity on him, how can the love of God be in him? Dear children, let us not love with words or tongue but with actions and in truth – 1 John 3:17-18.”

This blog originally appeared in Daily Kos Labor on August 19, 2012. Reprinted with permission.

About the Author: Mark Anderson, a Daily Kos Labor contributor, describes himself as a 44 year-old veteran, lifelong Progressive Democrat, Rabid Packer fan, Single Dad, Part-time Grad Student, and Full-time IS worker. You can learn more about him on his Facebook, “Kodiak54 (Mark Andersen)”

Minimum Wage Boost Could Create 100,000 Jobs

Wednesday, August 15th, 2012
Credit: Joe Kekeris

Credit: Joe Kekeris

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

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

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

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

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

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

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

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

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

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

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

One In Four American Workers Will Be In Low-Wage Jobs For The Next Decade

Thursday, August 2nd, 2012

waldron_travis_bioThe share of the economy made up by low-wage jobs has grown since the Great Recession, and according to one new study, it won’t shrink in the future even as the economy continues to recover. The number of Americans working in low-wage jobs — those that pay wages equal to or below the poverty line — will remain steady over the next decade, according to the Economic Policy Institute, as CNNMoney reports:

Some 28% of workers are expected to hold low-wage jobs in 2020, roughly the same percentage as in 2010, according to a study by the Economic Policy Institute.

The study defines low-paying jobs as those with wages at or below what full-time workers must earn to live above the poverty level for a family of four. In 2011, this was $23,005, or $11.06 an hour.

The study is the latest to detail the growth of low-wage occupations in the United States. A recent report from the National Employment Law Project found that more than one in four private sector workers now make less than $10 an hour, an even lower threshold than was used in the EPI study. The five industries that are comprised mostly of low-wage workers, meanwhile, are growing faster than the overall American economy.

While the number of low-wage jobs has increased, so has the gap between low-wage workers and the executives who employ them. The federal minimum wage would need to be raised by more than $3 an hour to match the buying power it had in 1968, and overall wages in the U.S. have been virtually stagnant for decades, even as pay for chief executives has risen exponentially. At the 50 companies that employ the largest number of low-wage workers, chief executives made an average of $9.4 million last year.

This blog originally appeared in Think Progress on August 2, 2012. Reprinted with permission.

About the Author: Travis Waldron is a reporter/blogger for ThinkProgress.org at the Center for American Progress Action Fund. Travis grew up in Louisville, Kentucky, and holds a BA in journalism and political science from the University of Kentucky. Before coming to ThinkProgress, he worked as a press aide at the Health Information Center and as a staffer on Kentucky Attorney General Jack Conway’s 2010 Senate campaign. He also interned at National Journal’s Hotline and was a sports writer and political columnist at the Kentucky Kernel, the University of Kentucky’s daily student newspaper.

Minimum Wage: Not Just for Kids

Tuesday, July 31st, 2012
Credit: Joe Kekeris

Credit: Joe Kekeris

As Congress considers raising the nation’s minimum wage, it’s a good time to point out that it’s not just for teens earning pocket money. At $7.25 an hour, the current minimum wage hasn’t been raised for three years. Proposals in both the House and Senate would increase the federal minimum wage to $9.80 by July 1, 2014.

A report by the Economic Policy Institute (EPI) points out that

87.9 percent of those affected nationally by increasing the federal minimum wage to $9.80 are 20 years of age and older. The share of those affected who are 20 or older varies by state, from a low of 77.1 percent in Massachusetts to a high of 92.4 percent in Florida (and 93.9 percent in the District of Columbia).

That means people trying to support themselves and their families are being paid an hourly wage that right now has less buying power than in 1997. Further, writes Holly Sklar, director of Business for a Fair Minimum Wage:

At $7.25 an hour, today’s full-time minimum wage retail worker, security guard, child care worker or health aide makes just $15,080 a year. Last century’s 1968 minimum wage worker made $21,944 a year, adjusted for inflation.

Take note of which House and Senate members scream against raising the minimum wage. They’re likely the same ones funded by corporate giants whose CEOs last year got a 16 percent raise—with an average compensation of $10.5 million.

The AFL-CIO is urging Congress to pass the Fair Minimum Wage Act of 2012 (read letter here) as are noted economists.

This blog originally appeared in AFL-CIO on July 30, 2012. Reprinted with permission.

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

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