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Posts Tagged ‘Minimum Wage’

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.

Oregon passes law protecting workers from predatory scheduling by bosses

Monday, August 14th, 2017

Good news for Oregon workers in the retail and fast food industries. The state has become the first to pass a law protecting workers from some of the worst scheduling abuses employers love so much.

One in six Oregonians receive less than 24 hours of notice before their shifts, according to a survey the University of Oregon Labor Education and Research Center published in February.

Now, Oregon is mandating that the state’s largest employers in the retail, hospitality and food service industries — those with more than 500 workers — give employees their schedules in writing at least a week ahead of time.

They’ll also have to give workers a 10-hour break between shifts, or pay them extra.

Refinery 29 interviewed some workers about how the law would affect their jobs; according to Tia Raynor:

I worked for an international company that owns a bunch of coffee shops in airports. So while I was working there, they told me that I would have a set schedule. Within seven months, my schedule had changed eight times.

“I am a veteran with PTSD, due to being in Iraq a couple of times, and I was not able to go to my group counseling sessions because my schedule got changed.”

Laws like this should be on the Democratic agenda at all levels: Democratic state legislatures could be passing scheduling protections just as Republican state legislatures pass anti-abortion and anti-union laws, and if Democrats want to campaigning to retake Congress on a good jobs agenda, this belongs right alongside minimum wage and paid leave.

This blog was originally published at DailyKos Labor on August 11, 2017. Reprinted with permission.

About the Author: Laura Clawson is the labor editor at Daily Kos. Previous. she was senior writer at Working America, the community affiliate of the AFL-CIO. She has a PhD in sociology from Princeton University and has taught at Dartmouth College and the Princeton Theological Seminary. She is the author of “I Belong to This Band, Hallelujah: Community, Spirituality, and Tradition among Sacred Harp Singers.”

Trump’s Bid to Pit Black and Brown Workers Against Each Other

Monday, August 7th, 2017

President Trump has resurrected an old canard in his effort to sell a new effort to restrict immigration into the United States. The legislation he backs, he said at a White House ceremony, was necessary in part to protect “minority workers competing for jobs against brand-new arrivals” under the current immigration system.

This theme is a hardy perennial in right-wing media and think-tank reports, often featuring members of a small but persistent cadre of conservative black people willing to be the face of the pernicious idea that in order to boost the fortunes of African Americans, we have to keep new immigrants out of the country.

This notion keeps getting debunked, but Trump trotted it out anyway as his administration launches key assaults against the core concerns of African-American people.

This comes the same week as news reports that the Justice Department is gearing up a new assault on affirmative action programs at colleges, based on the lie that these programs discriminate against white and Asian college applicants.

Career civil-rights lawyers in the Justice Department are so aghast at the idea that their agency’s efforts are being redirected from addressing the continuing effects of structural racism that Attorney General Jeff Sessions plans to use political appointees and outside lawyers to lead the effort.

Remember that this pronouncement also is in the shadow of a speech Trump gave before police officers in Long Island, New York, in which he encouraged police officers to rough up criminal suspects.

“[W]hen you see these thugs being thrown into the back of a paddy wagon — you just see them thrown in, rough — I said, please don’t be too nice,” Trump told the assembly of law enforcement officers.

Even people in his own administration denounced the speech as inappropriate, as did prominent police chiefs. Later, White House press secretary Sarah Huckabee Sanders dismissed Trump’s comment as a joke.

But in African-American communities around the country, where the drumbeat of stories of police officers using clearly unwarranted deadly force against African Americans continues to reverberate, no one was laughing.

Vice senior editor Wilbert Cooper convincingly took on the black-people-harmed-by-immigration myth in a 2016 essay. Not only is it false that immigration of lower-skilled people harms African-American employment prospects, he wrote that “counter to what Trump and others contend, there’s evidence that immigration can actually help low-skilled blacks get back to work.”

Denver University economist Jack Strauss analyzed a wide breadth of data from metropolitan areas across the US in 2013 to determine whether blacks in particular lose out when it comes to immigration. He found there to be a “one-way causation from increased immigration including Latinos to higher black wages and lower poverty.” In other words, immigration is good for black workers. According to Strauss’s summary of his findings, a “1 percent rise in Latino immigration contributes to a 1.4 percent increase in employment rates among African Americans,” and “for every 1 percent increase in a city’s share of Latinos, African median and mean wages increase by 3 percent.”

The reality is, as Cooper writes, cities like Cleveland and Detroit are working to attract immigrants, because of the impact immigrants have on the overall economic vitality of the communities they make their home.

Jobs Tell The Story

On Friday, the federal government will release an updated picture of the nation’s employment situation. The previous report, covering June, showed that the nation’s unemployment rate was 4.4 percent, and African-American unemployment was 7.1 percent, down significantly from 8.8 percent in June 2016.

The significant decrease in black unemployment is in itself a direct rebuke to the idea that drastic measures to restrict immigration are necessary to lower unemployment rates in African-American communities.

What that progress affirms that economic growth combined with economic justice and fairness is essential to closing the gaps between black, brown and white employment prospects.

What The Nation Needs

What the nation needs is not an assault on immigration, but an assault on the effects of structural racism and economic inequality. Instead of dismantling affirmative action, we need investments in schooling for African-American children that start at preschool – and before.

We need to reinvest in communities that have been left behind by the free-market idolatry of too many state governments and, now, the federal government itself. We need every worker to have a living wage and access to affordable housing.

Above all, we need to end the assaults on the fundamental dignity of African-American people – from the coded reference to “thugs” who need to be roughed up by police to the active exalting by White House officials of the nostrums of white nationalism.

Thanks but no thanks, President Trump. The overwhelming majority of African Americans don’t want your faux paternalism at the expense of our immigrant brothers and sisters.

This blog was originally published at OurFuture.org on August 3, 2017. Reprinted with permission.

About the Author: Isaiah J. Poole is communications director of People’s Action, and has been the editor of OurFuture.org since 2007. Previously he worked for 25 years in mainstream media, most recently at Congressional Quarterly, where he covered congressional leadership and tracked major bills through Congress. Most of his journalism experience has been in Washington as both a reporter and an editor on topics ranging from presidential politics to pop culture. His work has put him at the front lines of ideological battles between progressives and conservatives. He also served as a founding member of the Washington Association of Black Journalists and the National Lesbian and Gay Journalists Association.

Eight years after the last minimum wage increase, Democrats want to give 41 million workers a raise

Monday, July 24th, 2017

The federal minimum wage has been stuck at $7.25 an hour since July 24, 2009—for eight years. Thanks to Republicans in Congress and the White House, it won’t be going up any time soon, and though many states have raised their minimum wages, 21 states remain stuck at $7.25 an hour. That’s a poverty wage. A new analysis from the National Employment Law Project shows what the Democrats’ Raise the Wage Act of 2017—which would take the minimum wage up to $15 by 2024, a gradual raise by any standard except the Republican “no raise ever” standard—would do for low-wage workers:

  • 20.7 million workers would see pay raises in the 21 states whose minimum wages are stuck at $7.25.
  • Fully half of the 41.5 million workers who would see pay increases are in the 21 states stuck at $7.25.
  • In the 13 other states with minimum wages of less than $9, nearly 13 million more workers also would see their hourly pay rise.
  • Of all the workers nationwide who would receive raises, 8 in 10 are in the 34 states with the lowest minimum wages.
  • In 19 of the 21 states at $7.25, more than 30 percent of wage-earners would benefit from raising the federal minimum wage to $15 by 2024; the highest share is in Mississippi, with 44.4 percent.

Republicans want these workers stuck at poverty wages. There’s no other serious explanation for their refusal to raise the minimum wage over the past eight years.

 This blog was originally published at DailyKos on July 24, 2017. Reprinted with permission.
About the Author: Laura Clawson is labor editor at DailyKos. 

Seattle's $15 minimum wage raised pay with zero effect on restaurant jobs, new study shows

Thursday, June 22nd, 2017

Raising the minimum wage does not kill jobs, no matter what Republicans tell you—and a new study of the Seattle restaurant industry, where some businesses are already paying a $15 minimum wage, provides another data point showing just that. According to the University of California, Berkeley, study, the increased minimum wage had employment effects that were “not statistically distinguishable from zero,” which is a fancy way of saying “we looked and we could not find a damn thing.” The Seattle Times reports:

Indeed, employment in food service from 2015 to 2016 was not affected, “even among the limited-service restaurants, many of them franchisees, for whom the policy was most binding,” according to the study, led by Berkeley economics professor Michael Reich. […]

It can be hard to separate what impact the wage law had on employment in Seattle versus the effect of the city’s white-hot economy and tight labor market, but “we do our best,” Reich said.

The study compares the wage and employment growth rates in Seattle to a control group of counties, in Washington state and across the U.S., that had similar growth rates as Seattle in the years shortly before the minimum-wage law took effect.

A report issued last year found indications that the increased minimum wage did slightly restrict job growth, but we don’t know if the difference comes from differing methodologies or from the studies covering different time frames. Both studies have to contend with Seattle’s booming economy, which could conceivably mask lowered growth of the job rate for low-wage workers … but which itself refutes the Republican talking points against raising the minimum wage. Because “it’s hard to tell if even more low-wage workers would otherwise be employed because the economy is so darn good” does not exactly back up claims that having the minimum wage be a living wage will destroy the economy.

A Day in the Life of a Day Laborer

Friday, June 16th, 2017

Come sunrise, the men fill the street corner, among them Luis, quietly sitting by himself, nurturing hopes for work today.

There was no work yesterday, nothing the day before and nothing for weeks.

Still, the 50-year-old Guatemalan, who didn’t want his last name used, waits in the growing heat, saying he has no other choice.

He waits even though he hates day labor work, because he says it is sometimes dangerous, barely enough to live on, and some of the men on the street corner have bullied and hurt him on the job.

The factory where he worked for almost a decade shut down a few years ago, he can’t find any work as a caregiver, and, he says, the factories aren’t hiring or they are shutting down.

He says he has papers to show he is a legal resident in the United States, but he suspects that many of the men standing around him don’t have that status.

That’s not the case for Carlos Sanchez, 70, and Gustavo Almaraz, 28, who are standing nearby. Carlos says he is Puerto Rican and Gustavo says he was born in the United States.

But they say that many workers lack papers and so they suffer. Often, the contractors who hire the men off the street corner “automatically think you don’t have papers,” explains Almaraz. And that’s a problem, because they want to take advantage of you. “Some of the people here (doing the hiring) are mean,” he adds.

The two also say they know how to take care of themselves.

Sanchez says he knows how to do a lot of jobs and how to deal with people, starting out decades ago as a migrant worker earning 35 cents an hour. And Almaraz says he has picked up enough skills that he can virtually take every job offered on the street corner.

“It’s all on you,” Almaraz explains. “You see a car coming in and you have to go up and say, ‘Hey boss, what do you need?’”

The secret is finding a good boss and somebody who needs you for a long time, he says. It also involves knowing, he says, when to walk away from someone who abuses you. “I had a good-paying job with an electrician, but he started to become disrespectful. He started to yell and insult me.”

Almaraz says he won’t work for less than $15 an hour, but surveys indicate laborers often earn minimum wages or less, and sometimes nothing. “Nobody can live on less than $100 a day,” Almaraz says.

Near them is a 65-year-old Mexican: a short, stocky, balding man, who says he has been doing day labor ever since coming to the United States without papers 12 years ago.

He hasn’t been able to find work and so he says he will take less than the others. “Sometimes they don’t pay. It’s very difficult. There is no work and everything is expensive,” he says in Spanish.

Time passes, and the men disappear from the street corner. Some are off to work, getting into the trucks and vans that pick them up.

As soon as someone pulls up onto the gasoline station’s street corner, the men rush them, huddling by the vehicle’s windows, bargaining furiously as they tout their skills. And some just wander off.

Not Luis. He sits waiting. Some jobs he won’t take.  “I have friends who were injured doing roofing, and they went home (to Guatemala) handicapped,” he says.

Not too long ago, he took a moving job with another worker. It was supposed to be an easy three-hour job. But the items they moved were so heavy, he sat at home for three days afterward, his hands shaking.

“A lot of people will do this work. They don’t speak the language so they have to. But I don’t have to,” he says.

He waits along with more than 100,000 others who gather daily on dozens of street corners across the United States, according to figures from 2006. It is a world, where workers are often cheated out of their wages, injured on the job and then left without medical care, according to a 2006 survey. Where workers who complain often suffer retaliation by employers who fire them, suspend them, or threaten to call immigration officials.

As the hours pass, Luis huddles in the scorching sunlight, watching out for anybody looking for a worker and a job he can do.

Most of the men are gone, but not him.

This article originally appeared at Inthesetimes.com on June 15, 2017. Reprinted with permission.
About the Author: Stephen Franklin, former labor and workplace reporter for the Chicago Tribune, was until recently the ethnic media project director with Public Narrative in Chicago. He is the author of Three Strikes: Labor’s Heartland Losses and What They Mean for Working Americans (2002), and has reported throughout the United States and the Middle East. He can be reached via e-mail at freedomwrites@hotmail.com.

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

Veteran Organizer Gives Inside Look at the First $15 Minimum Wage Campaign

Tuesday, June 6th, 2017

Back in 2011, as the Occupy Wall Street movement was still spreading through the country, a smaller standoff was unfolding at Sea-Tac, the international airport in the small, eponymous town between Seattle and Tacoma that serves both cities. Along with some of her coworkers, Zainab Aweis, a Somali Muslim shuttle driver for Hertz car rental, was on her way to take a break for prayer, when her manager stepped in front of the doorway.

“If you guys pray, you go home,” the manager said.

As devout Muslims, Aweis and her fellow staff were dedicated to praying five times a day. Because it only takes a few minutes, their employer had previously treated the prayers like smoke breaks—nothing to worry about. Suddenly, the workers were forced to choose between their faith and their jobs.

“I like the job,” Aweis thought, “but if I can’t pray, I don’t see the benefit.”

As she and others continued to pray, managers started suspending each Muslim worker who prayed on the clock, totaling 34.

The ensuing battle marked a flashpoint in what would eventually be the first successful $15 minimum wage campaign in the country. The story of these Hertz workers, and the many others who came together to improve their working conditions, is recounted in Beyond $15: Immigrant Workers, Faith Activists, and the Revival of the Labor Movement, a new book by Jonathan Rosenblum, a leading organizer of the campaign.

As the labor movement finds itself in a state of crisis, Beyond $15 is both a timely history of a bold campaign’s unlikely victory and an inspiring call for a flexible, progressive and power-building vision of labor organizing.

The decades-long decline of union power and the recent rise of anti-union legislation have made organizing workers in even the best of conditions an uphill battle. At Sea-Tac, one might have thought it impossible. While organizing even a single workplace is a challenge, Rosenblum and others were hoping to organize many. Decades of restructuring and union busting in the airline industry meant that many low-wage workers at Sea-Tac worked for various contractors rather than the airlines themselves. Though many of the employees worked alongside each other and shared grievances, they did not necessarily have the same boss.

Worse than that, Sea-Tac airport workers weren’t guaranteed most federal rights to union activity because those rights do not fully cover contractors or transportation workers. Due to an antiquated law called the Railway Labor Act (RLA), airport workers are all but prohibited from striking and so-called disruptive activity in the workplace. And, if all of that wasn’t bad enough, many of the workers wanted nothing to do with a union. Some had already had bad experiences with unions and did not trust them, while others were refugees who wanted no part in anything that might attract the government’s attention.

That Rosenblum and his colleagues were able to achieve victory under such circumstances, alone, makes Beyond $15 an instructive read. The book’s detailed portraits of organizers, workers and their actions are a testament to bold and creative maneuvers, which were executed so well that they made a seemingly invincible corporation feel threatened by a united front of cabin cleaners and shuttle drivers. Rosenblum’s coalition of faith leaders and a team of worker organizers, closely tied to the community, led picket drives on luggage carts, co-opted shareholder meetings with defiant prayers and songs, made a successful bid to demand union recognition and launched a citywide ballot initiative that narrowly beat its concerted conservative opposition (and I mean narrowly–the initiative passed by 77 votes, a 1 percent margin).

But more than just a collection of war stories, Rosenblum’s purpose in Beyond $15 is to persuade other advocates to follow his lead. The book uses Sea-Tac’s success to argue for a “social movement union” approach to organizing that grounds labor advocacy in moral terms, challenges the existing economic and political order and broadens the definition of union organizing to include a wide swath of community groups and faith leaders rather than union members alone.

“Today’s expectation among most union leaders …. is that the organization providing the most dollars and staff get to call the shots,” Rosenblum writes. “But community allies bring other assets, like relationships, credibility, or cultural competence, which can’t be measured monetarily but are just as vital.”

To be sure, Rosenblum’s vision for labor organizing is not exactly new. Many progressive union leaders, particularly younger ones, would find his recommended principles obvious. Even the most powerful and ostensibly hierarchical union leaders would likely agree with many of his points. And while this kind of progressive vision is important, there are practical conundrums that cannot be resolved by Rosenblum’s call to “aim higher, reach wider, build deeper”—namely, a history of industrial segmentation, automation and the large number of workers in sectors where traditional models of union organizing simply aren’t feasible. Even when union heads fully prioritize grassroots organizing, coalition building and collaborating with faith leaders, as AFL-CIO head John Sweeney did in the 1990s, this strategy is not a panacea.

With Republican control of every branch of government, the rising popularity of “right-to-work” legislation and the increasing number of preemption bills that allow conservative states to nullify laws like the one passed at Sea-Tac, these challenges are only multiplying. It’s with that in mind that Beyond $15 may be exactly the inspirational fodder that organizers need. There may not be an easy fix for the tensions between grassroots organizing and newer forms of worker advocacy, but Rosenblum can attest that the problem need not be resolved to plod ahead. As he shows in his book, progressive organizing and coalition building can work alongside ballot initiatives and big unions, and victories can still be won—now.

 This article was originally published at Inthesetimes.com on June 2, 2017. Reprinted with permission. 
About the Author: Jonathan Timm is a freelance reporter who specializes in labor and gender issues. Follow him on Twitter @jdrtimm.

Bosses are stealing billions from their workers' paychecks, but it's not treated like a crime

Monday, May 15th, 2017
 Here’s a kind of theft almost no one goes to prison for. When an employer doesn’t pay workers the money they’ve earned, it has the same effect as if they got paid and then walked out on the street and had their pockets picked. But somehow wage theft—not paying workers the minimum wage for the hours they’ve worked, stealing tips, not paying overtime, and other ways of not paying workers what they’ve earned—doesn’t get treated as the crime it truly is. It has a huge impact, though, as a new study from the Economic Policy Institute shows. The EPI looked at just one form of wage theft: paying below minimum wage. Just that one type of violation steals billions of dollars out of workers’ paychecks:
  • In the 10 most populous states in the country, each year 2.4 million workers covered by state or federal minimum wage laws report being paid less than the applicable minimum wage in their state—approximately 17 percent of the eligible low-wage workforce.
  • The total underpayment of wages to these workers amounts to over $8 billion annually. If the findings for these states are representative for the rest of the country, they suggest that the total wages stolen from workers due to minimum wage violations exceeds $15 billion each year.
  • Workers suffering minimum wage violations are underpaid an average of $64 per week, nearly one-quarter of their weekly earnings. This means that a victim who works year-round is losing, on average, $3,300 per year and receiving only $10,500 in annual wages. […]
  • In the 10 most populous states, workers are most likely to be paid less than the minimum wage in Florida (7.3 percent), Ohio (5.5 percent), and New York (5.0 percent). However, the severity of underpayment is the worst in Pennsylvania and Texas, where the average victim of a minimum wage violation is cheated out of over 30 percent of earned pay.

Young workers, women, immigrants, and people of color are disproportionately affected because they’re overrepresented in low-wage jobs to begin with. This wage theft is keeping people in poverty—the poverty rate among workers paid less than the minimum wage in this study was 21 percent, and would have dropped to 15 percent if they’d been paid minimum wage. If their bosses had followed the law, in other words.

The wage thieves rarely face penalties for stealing, and when they do:

Employers found to have illegally underpaid an employee are usually required only to pay back a portion of the stolen wages—not even the full amount owed, much less a penalty for violating the law.

The law basically gives employers permission to steal from workers, in other words. And it sure won’t be getting better under Donald Trump.

This blog originally appeared at DailyKos.com on May 12, 2017. Reprinted with permission. 

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and labor editor since 2011.

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