President Barack Obama today said that “a relentless, decades-long trend”—“a dangerous and growing inequality and lack of upward mobility…has jeopardized middle-class America’s basic bargain: that if you work hard, you have a chance to get ahead.”
The president declared that “making sure the economy works for every working American” is the “defining challenge of our time” and drives everything he does as president. His proposals to reduce inequality include an increase in the minimum wage and “ensuring that our collective bargaining laws function as they’re supposed to, so unions have a level playing field to organize for a better deal for workers and better wages for the middle class.”
In the speech at a community center in a low-income area of Washington, D.C., which was hosted by the Center for American Progress, Obama said, “[T]he premise that we are created equal is the opening line in the American story.” He highlighted a series of efforts throughout American history to put those words into practice—from Abraham Lincoln starting a system of land grant colleges; to Theodore Roosevelt fighting for an eight-hour day and worker protections; to Franklin D. Roosevelt fighting for Social Security, unemployment benefits and a minimum wage; to Lyndon B. Johnson fighting for Medicare and Medicaid.
“We built a ladder of opportunity to climb and stretched out a safety net so that if we fell, it wouldn’t be too far, and we could bounce back. As a result, America built the largest middle class the world has ever known. And for three decades after World War II, it was the engine of our prosperity.”
However, Obama said, “starting in the late 70s, the social compact began to unravel.”
A more competitive world lets companies ship jobs anywhere. And as good manufacturing jobs automated or headed offshore, workers lost their leverage, jobs paid less and offered fewer benefits. As values of community broke down and competitive pressures increased, businesses lobbied Washington to weaken unions and the value of the minimum wage.
As trickle-down ideology became more prominent, taxes were slashed for the wealthiest, while investments in things that make us all richer, like schools and infrastructure, were allowed to wither.
The result is “an economy that’s become profoundly unequal.” Income inequality has grown to record levels, with the top 1% having 288 time the net worth of the typical family, with CEO pay soaring from 20 to 30 times that of the average worker to more than 273 times and with the top 10% taking half of all income, up from a third since 1979. In addition, Obama outlined how upward mobility has been squashed at the same time.
The president said that growing inequality and lessened upward mobility “should offend all of us and it should compel us to action. We are a better country than this.” He highlighted that these trends are bad for our economy, pointing to studies that show that economic growth is more fragile in countries with greater inequality.
Obama then presented a “road map” of proposals to reduce inequality and restore economic opportunity:
Relentlessly push a growth agenda, making America a magnet for good, middle-class jobs in manufacturing and energy and infrastructure and technology, and ending incentives to ship jobs overseas;
Empower more Americans with the skills and education they need to compete in a highly competitive global economy;
Empower our workers. “It’s time to ensure our collective bargaining laws function as they’re supposed to so unions have a level playing field to organize for a better deal for workers and better wages for the middle class. It’s time to pass the Paycheck Fairness Act so that women will have more tools to fight pay discrimination. It’s time to pass the Employment Non-Discrimination Act so workers can’t be fired for who they are or who they love;
Target programs for the communities and workers who have been hardest hit by the economic change and the Great Recession; and
Revamp retirement to protect Americans in their Golden Years.
He said that “it was well past time” to raise the minimum wage for a growing service sector that includes “airport workers, and fast-food workers, and nurse assistants, and retail salespeople who work their tails off and are still living at or barely above poverty.”
Obama also called for renewing the extended unemployment insurance program for the long-term unemployed and protection of the Supplemental Nutrition Assistance Program that Republicans have targeted for cuts.
It makes a difference for a mother who’s working but is just having a hard time putting food on the table for her kids, [and] it makes a difference for a father who lost his job and is out there looking for a new one that he can keep a roof over his kids’ heads.
He also told congressional Republicans, who have blocked and continue to block action on the economy—from creating jobs to raising the minimum wage to ending tax breaks for corporations that ship jobs overseas:
You owe it to the American people to tell us what you are for, not just what you’re against….If Republicans have concrete plans that will actually reduce inequality, build the middle class, or provide more ladders of opportunity to the poor, let’s hear them.
This article was originally printed on AFL-CIO on December 4, 2013. Reprinted with permission.
About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journaland managing editor of the Seafarers Log. He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.
Is it patriotic to ship American jobs overseas? President Obama doesn’t think so. He’s right, of course. We live in a globally-connected world, but let’s face it: Home-grown corporations must first focus on their own backyards–a novel concept all to many, it seems.
Obama implicitly raised the question yesterday during his Insourcing American Jobs Forum which featured representatives from more than a dozen large and small businesses that have made decisions to bring jobs to the United States and to increase their investments here.
Pointing to the CEOs in the room, Obama said they ”take pride in hiring people here in America, not just because it’s increasingly the right thing to do for their bottom line, but also because it’s the right thing to do for their workers and for our communities and for our country.
I don’t want America to be a nation that’s primarily known for financial speculation and racking up debt buying stuff from other nations. I want us to be known for making and selling products all over the world stamped with three proud words: “Made in America.” And we can make that happen.
I don’t want the next generation of manufacturing jobs taking root in countries like China or Germany. I want them taking root in places like Michigan and Ohio and Virginia and North Carolina. And that’s a race that America can win. That’s the race businesses like these will help us win.
Lack of job creation in industries that pay solid middle-class wages is in part behind our nation’s rising inquality, and today White House Council of Economic Advisers Chairman Alan Krueger addressed the issue in detail.
TPM’s Sahil Kapur says Krueger blamed inequality on economic policies “tilted to favor top earners — including income tax reforms (presumably during the Bush era) and the ‘drastic cut in the estate tax.’ Central to the message is that inequalities in the system are “jeopardizing our tradition of equality of opportunity,” as Krueger put it.
“If we had a high degree of income mobility we would be less concerned about the degree of inequality in any given year. But we do not,” he argued. “Moreover, as inequality has increased, evidence suggests that year-to-year or generation-to-generation economic mobility has decreased.”
For too long, the 1 percent have sought and received tax breaks that actually created subsidies for corporations exporting good American jobs overseas.
America’s workers are not looking for handouts, they are looking for a chance to work hard and apply their best in the world skills in order to provide their families a middle class life.
This blog originally appeared in AFL-CIO Now on January 12, 2012. Reprinted with permission.
About the Author: Tula Connell- “I got my first union card while I worked my way through college as a banquet bartender for the Pfister Hotel in Milwaukee (we 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—I started working in the labor movement in 1991. Beginning as a writer for SEIU (and OPEIU member), I now blog under the title of AFL-CIO managing editor.”
WASHINGTON, D.C.—Many in the labor movement objected to President Barack Obama speaking at the Chamber of Commerce yesterday. Yet there was little protest from AFL-CIO leaders to the president’s speech.
For the first time, President Obama ventured over to the Chamber of Commerce to speak. While the speech was full of the usual platitudes of most Obama speeches, what mattered most was not what he said, but the speech’s symbolism. By speaking at the Chamber, President Obama was offering an olive branch to the very organization that has led attacks against him.
President Barack Obama speaks at the U.S. Chamber of Commerce on February 7 in Washington, D.C. He talked about the importance of working together on job creation and growing the economy. (Photo by Mark Wilson/Getty Images)
The president defended some of his regulatory agenda and tax policies. He also called on CEOs to create more jobs in America. But he made no mention of the Chamber’s tolerance of unionbusting policies that lead to nearly 30,000 reported cases of unfair labor practices against U.S. workers by companies every year.
The symbolism of the speech upset many in the labor community. Ralph Nader wrote an open letter to the President suggesting “What about walking next door and visiting your political friends at the headquarters of the AFL-CIO, whose member unions represent millions of working Americans? You can discuss with Richard Trumka, a former coal miner and the new president of the AFL-CIO, your campaign promises in 2008. Repeatedly you said to the American people that you supported the “card check” and a “federal minimum wage of $9.50 in 2011.”
The AFL CIO neither organized a protest of the president’s speech nor extended an invitation for the president to cross the street and speak at the AFL CIO headquarters (where Obama has never given a speech).
Two unions—the National Nurses Union/California Nurse Association (CNA) and the United Electrical, Radio, and Machine Workers of America (UE), though, did organize a protest of the president’s speech at the Chamber. Both unions, it should be noted, have traditionally been more politically independent of the Democratic Party. Both unions endorsed Ralph Nader in his 2000 presidential run (At that time the CNA hadn’t merged with other unions).
The AFL CIO refused requests to endorse the protest. Still, 75 union members and allies picketed the president’s speech, chanting “Hey Hey, Hoo Hoo, Union Busting Got To Go”! One labor union member, who wished to remain anonymous, told me afterward that “I feel like by protesting today, we at least salvaged the dignity of the labor movement.”
Following his mantra “The President doesn’t communicate well with me in the press,” AFL-CIO President Trumka refused to denounce President Obama in remarks on MSNBC. In fact, Trumka disagreed with IAM (machinists union) President Thomas Buffenbarger‘s remark that “this isn’t a truce with business. I think he capitulated.” Instead, Trumka defended the president’s speech. He also praised the selection of former JPMorgan Chase Director William Daley as Chief of Staff, suggesting his selection might make things better for organized labor.
Why is organized labor’s top leader so unwilling to criticize the Chamber of Commerce appearance?
One CNA official told me that the AFL CIO was hesitant to protest the Chamber as a result of their rare joint statement last month in which they endorsed increased spending on infrastructure program. The AFL CIO, it seems, is hoping that by teaming up with the Chamber, it has a better chance of seeing Congress pass funding to keep its members employed and its unions financially solvent and vibrant.
But I can’t help worrying that by teaming up with the Chamber of Commerce, the AFL-CIO is undermining energy the labor movement needs to win the war against the country’s business class.
About the Author: Mike Elk is a third-generation union organizer who has worked for the United Electrical, Radio, and Machine Workers, the Campaign for America’s Future, and the Obama-Biden campaign. He has appeared as a commentator on CNN, Fox News, and NPR, and writes frequently for In These Times, Huffington Post, Alternet, and Truthout.
Last month, President Obama wrote an op-ed in the Wall Street Journal calling for “a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive.”
The announcement by Obama to eliminate burdensome regulation was seen as dramatic tilt to the right for the White House, which is increasingly pro-business. Others, though, dismissed the move as mere posturing that would not seriously affect workers. But since calling for the regulatory review, the Obama Administration has done away with several proposed workplace safety regulations that have upset worker safety advocates.
Earlier this week, the Occupational Safety and Health Administration announced it was delaying (or stopping, as many advocates claimed) implementation of a set of proposed regulations on ergonomics. Work-related musculoskeletal disorders remain the leading cause of workplace injury and illness in this country,” stated OSHA Chief Dr. David Michaels in a press release. “However, it is clear that the proposal has raised concern among small businesses, so OSHA is facilitating an active dialogue between the agency and the small business community.”
The proposed regulation would have forced firms to count ergonomic injuries—also known as musculoskeletal disorder injuries (MSDs)—in statistics provided to OSHA . The push to merely count ergonomic injuries as part of workplace injury statistics was considered to be the compromise over regulating ergonomic injuries more broadly. Advocates had tried to bring tougher Clinton-era workplace safety laws, but settled on counting the MSD injuries as the compromise.
Workplace advocates hoped that being able to point to companies where a high amount of workers were suffering from ergonomic injuries would allow them to hold companies accountable. Now they will lack even the ability to shame corporations using government-published statistics.
Ergonomic injuries such as carpal tunnel syndrome and strained backs are agrowing problem, as more Americans wind up working in offices. Federal data shows that MSDs injuries “accounted for 28 percent of all workplace injuries and illnesses” that forced workers to miss time from the job.
Previously, there had been regulations on the books during the Clinton Administration to at least monitor and to offer minor protections to workers from such injuries. However, in 2001, a Republican-led Congress eliminated most ergonomic regulations. This was followed by eliminating the counting of ergonomic injuries by the Bush-era OSHA in 2003.
Many labor observers say OSHA’s decision not to regulate MSD workplace injuries shows that the Obama administration is slowly shifting away from its focus on tougher regulation of workplace safety. The decision to delay implementation of rules to regulate MSD workplace injuries follows a decision in mid-January by OSHA to write a rule regulating extreme noise on the job, which affects the hearing of many who work in the construction and manufacturing industries.
According to the Wall Street Journal, the National Association of Manufacturers had advocated against the proposal and in a letter to the new chairman of the House oversight committee, Rep. Darrell Issa (R., Calif.), called for celebrating its demise. As chairman of the House Oversight Committee, Issa has threatened to investigate such regulations, which has scared many administration officials who do not want to get caught in bureaucratic wrangling.
Those in the business community saw the defeat of these two regulations as a sign of their growing influence with the Department of Labor and OSHA. “We hope that these first two steps are a signal to the business community, and employers in general, that OSHA will ‘stop, look and listen,’” Joe Trauger, vice president of human resources policy for the National Association of Manufacturers told the Hill newspaper.
People in organized labor are upset about the proposed regulation being withdrawn. “All of these actions are coming because of the November elections and the fierce business opposition to anything,” said Peg Seminario, the AFL-CIO’s director of health and safety. “Just because the Chamber of Commerce and other business groups scream doesn’t mean there is a legitimate reason to retreat. There are real negative impacts here that can harm workers.”
The ability of corporate forces to stop the implementation of these rules may signal the ability of big business to block or water down other rules protecting workers. One has to wonder: Will the elimination of such regulations actually save any jobs, as the president seems to believe? Or will their elimination hurt workers’ lives?
About the Author: Mike Elk is a third-generation union organizer who has worked for the United Electrical, Radio, and Machine Workers, the Campaign for America’s Future, and the Obama-Biden campaign. He has appeared as a commentator on CNN, Fox News, and NPR, and writes frequently for In These Times, Huffington Post, Alternet, and Truthout.
Not the wars. Not greenhouse gasses. Not even the deficit. The issue most important to Americans is jobs.
Despite that, jobs failed to make an appearance in the State of the Union address.
The talk was all about business. Business was doing better. Business needed taxpayers to help pay for research and innovation. Business will get government help to eliminate pesky regulations. Business must have lower taxes.
The most telling statement was this:
“We have to make America the best place on Earth to do business.”
Especially because it wasn’t matched by a companion:
“We have to make America the best place on Earth to work.”
The speech expressed a policy in which business is the focus of government, taking precedence over workers. The American colonists created a government for their own benefit; they did not constitute an agent to serve business. A policy giving corporations primacy is risky for American workers.
The state of the union noted that happy days are here again for corporations and banks:
“Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.”
The state of the union outlined a plan under which the government will coddle corporations, essentially proving companies government welfare using American workers’ tax dollars. If businesses create jobs for workers as a result, fine. If they don’t, there’s no plan to exact a penalty.
For example, under the policy described in the speech, American workers will fork over tax dollars to pay for research and development for businesses that are sitting on a record $1.8 trillion in cash reserves — hoarding it rather than creating jobs.
The president said:
“Two years ago, I said that we needed to reach a level of research and development we haven’t seen since the height of the Space Race. And in a few weeks, I will be sending a budget to Congress that helps us meet that goal. We’ll invest in biomedical research, information technology, and especially clean energy technology — an investment that will strengthen our security, protect our planet, and create countless new jobs for our people.”
Maybe it will create new jobs. Hopefully. But no guarantees were offered. Mentioned as a business success story in the speech was a Michigan company, Luma Resources, which began manufacturing solar shingles with the help of a $500,000 government grant. It created 20 jobs, $25,000 a job. American taxpayers might think that’s a little pricey, but what’s worse is the potential for Luma Resources to go the way of Evergreen Solar, squandering the corporate welfare.
Evergreen, the third largest maker of solar panels in the U.S. and recipient of at least $43 million in corporate welfare, announced earlier this month it would close its main American factory in Massachusetts and move manufacturing to China. Eight hundred Americans will lose their Evergreen jobs by April.
Evergreen officials said China will give the company even higher amounts of corporate welfare, which, of course, makes sense since China is not a capitalist country. Its economy is government controlled. And that government routinely violates international trade regulations – by providing banned subsidies to industries and by deliberately devaluing its currency.
No matter how better educated American workers get. No matter how much more innovative. No matter how much more productive. No matter how many tax dollars the government spends on research and development, if the corporations that benefit move manufacturing overseas, the American workers who paid for it will suffer.
In fact, it’s more than suffering; it’s betrayal by their government that provided tax benefits to companies for off-shoring jobs. It is betrayal by their government that fails to stop violations of trade laws by countries like China that lure away firms like Evergreen.
At the end of the State of the Union speech, the president said:
“From the earliest days of our founding, America has been the story of ordinary people who dare to dream.”
An ordinary American dreams of a family-supporting job, owning a home, saving enough to pay for a child’s college education, helping to build a safe community. Corporations aren’t Americans, no matter how often the U.S. Supreme Court grants them rights that the U.S. Constitution guarantees to human beings. Businesses aren’t citizens. Their allegiance isn’t to America. It’s to profits. They dream only of dollars. They concede no responsibility to family, community or country.
They were not included when the president said:
“Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater — something more consequential than party or political preference. We are part of the American family.”
The top priority of the American government must be making America the best place on Earth for Americans. If that’s good for corporations, great. The government must never place American citizens second.
About the Author: Leo W. Gerard is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama recently appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of the Apollo Alliance, Campaign for America’s Future and the Economic Policy Institute. He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union.
Yesterday, President Obama released a statement endorsing the Paycheck Fairness Act and calling on the Senate to pass the legislation.
In America today, women make up half of the workforce, and two-thirds of American families with children rely on a woman’s wages as a significant portion of their families’ income.
Yet, even in 2010, women make only 77 cents for every dollar that men earn. The gap is even more significant for working women of color, and it affects women across all education levels. As Vice President Biden and the Middle Class Task Force will discuss today, this is not just a question of fairness for hard-working women. Paycheck discrimination hurts families who lose out on badly needed income. And with so many families depending on women’s wages, it hurts the American economy as a whole. In difficult economic times like these, we simply cannot afford this discriminatory burden.
My Administration has already begun to address this problem. In my first week in office, I signed the Lilly Ledbetter Fair Pay Act, which helps women who face wage discrimination recover their lost wages, and in my State of the Union Address, I promised to crack down on violations of equal pay laws. Today the Equal Pay Enforcement Task Force will present its recommendations, which include ways to better coordinate among enforcement agencies and inform employees about their rights. These steps support women, and they also support businesses that are doing the right thing and paying their employees what they deserve.
We cannot do this work alone. So today, I thank the House for its work on this issue and encourage the Senate to pass the Paycheck Fairness Act, a common-sense bill that will help ensure that men and women who do equal work receive the equal pay that they and their families deserve. Passing this bill is one of the Task Force’s key recommendations, and I hope Congress will act swiftly so that I can sign it into law.
We encourage you to show your full support for the bill by going here, and contacting your Congressman.
The sound that American wind turbines produce as their giant, breeze-propelled blades whip around is a distinctive: Neh-neh-neh-neh-neh-neh.
The anticipation is that those energy-generating, whirling arms would create a whooshing sound. And maybe they do in some countries. But here, in America, they echo the almost melodic taunt of a schoolyard victor — Neh-neh-neh-neh-neh-neh: You can’t get me.
That’s because American wind turbines are the manifestation of freedom from foreign oil. The more American wind turbines, the fewer barrels of oil America must import to meet its energy needs. And American-built wind turbines help propel the nation out of the worst economic crisis since the Great Depression by generating good-paying American jobs.
President Obama talked about the ugly results of the nation’s refusal to solve its dependency problem – its guzzling of 20 percent of the world’s oil while controlling less than two percent of the world’s reserves. America’s combination of oil addiction and lack of adequate oil resources enslaves the nation to foreign sources, often foreign sources hostile to America. A generation ago, former President Jimmy Carter warned of the consequences of this abusive relationship as Iran held 52 Americans hostages and long lines formed at gasoline stations during a season of shortages.
Carter installed on the White House roof a symbol of the solution — solar panels. His successor there, Ronald Reagan, pulled them down. And the nation went on its merry way forgetting the once-empty gasoline stations and ignoring its ever-increasing foreign dependency – even as the Exxon Valdez mucked Prince William Sound two months after Reagan left office.
Here’s what Obama said about that wasted opportunity:
“And for decades, we have failed to act with the sense of urgency that this challenge requires. Time and again, the path forward has been blocked – not only by oil industry lobbyists, but also by a lack of political courage and candor.
The consequences of our inaction are now in plain sight. Countries like China are investing in clean energy jobs and industries that should be right here in America. Each day, we send nearly $1 billion of our wealth to foreign countries for their oil. And today, as we look to the Gulf, we see an entire way of life being threatened by a menacing cloud of black crude.”
The explosion of the Deep Water Horizon oil rig in the Gulf of Mexico, the deaths of 11 workers, the uncontrolled gushing of more than 50,000 barrels of oil a day into the sea, and the mucking of brown pelicans and four states’ coastlines have given Obama the ability to take up Carter’s righteous clean energy campaign. And Obama accepted the challenge:
“The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now. Now is the moment for this generation to embark on a national mission to unleash America’s innovation and seize control of our own destiny.”
The president noted that wind turbines are being built in retrofitted factories that were once abandoned right here in America. That happened in Pennsylvania. The wind turbine manufacturer Gamesa converted defunct mills into centers for wind turbine construction. And it cooperated with the United Steelworkers (USW) to provide good-paying union jobs.
That is the potential President Obama sees – independence from foreign sources and resurgence of America’s economy. It is the potential that the USW and the American Wind Energy Association (AWEA) pictured when they agreed earlier this month to work together to accelerate development and deployment of wind energy production in the U.S.
Like the Steelworkers, the national trade association of America’s wind industry believes the U.S. must move toward renewable energy sources and must construct them itself. U.S. Sen. Sherrod Brown of Ohio explained it simply when the USW and AWEA announced their partnership:
“We can’t replace our dependence on foreign oil with a dependence on Chinese-made wind turbines. It’s critical that American manufacturers have the resources to develop and deploy wind energy components. Clean energy will help America regain its leadership in manufacturing. We need to ensure American workers and manufacturers are building the clean energy components that will be used around the world.”
Obama called on Americans to “seriously tackle our addiction to fossil fuels.” But like any rehab program, success won’t come easily. Oil companies will continue to lobby against it. Swayed by their money, some politicians will oppose the legislation essential to encourage it.
But symbolic solar panels must remain on the White House roof this time. Renewable energy, as Obama said, enables America to shape its own destiny
The President urged the nation to free itself from its oil dependency now:
“As we recover from this recession, the transition to clean energy has the potential to grow our economy and create millions of jobs – but only if we accelerate that transition. Only if we seize the moment.”
This is the time for wind turbines. For solar. For hydro. This is the moment to hear increasing numbers of rotor blades whipping up the sound of independence.
About The Author: Leo Gerard is the United Steelworkers International President. Under his leadership, the USW joined with Unite -the biggest union in the UK and Republic of Ireland – to create Workers Uniting, the first global union. He has also helped pass legislation, including the landmark Canadian Westray Bill, making corporations criminally liable when they kill or seriously injure their employees or members of the public.
On May 5 and 6, House and Senate committees held back-to-back hearings on legislation to override a June 2009 Supreme Court decision that stripped older workers of vital protections against bias on which they had relied for over 40 years. In this ruling, which Justice Stevens in dissent characterized as “unabashed judicial law-making,” “irresponsible,” and in “utter disregard” of the Court’s own precedents and “Congressional intent,” a narrow 5-4 majority so weakened the 1967 Age Discrimination in Employment Act (ADEA), that employers are left with little incentive to comply. The case, Gross v. FBL Financial Services, illustrates the accuracy of President Obama’s recent observation that we “are now seeing a conservative jurisprudence” that is both “activist” and bent on gutting laws that, like the ADEA, were enacted to protect ordinary people.
The case arose out of circumstances all too familiar to older workers at all levels in our economy, especially in the hard times from which much of the nation has barely begun to recover. In 2003, Jack Gross, aged 54 and a 32-year employee of FBL Financial, was demoted from his position as claims administration director, and transferred to a newly created position with drastically reduced responsibilities. Gross sued, and at trial introduced “evidence suggesting that his reassignment was based at least in part on his age” (as stated by Justice Clarence Thomas writing for the majority). Gross’ employer responded with the claim that the reassignment was part of a “corporate restructuring.” The jury found for Gross and awarded him $46,945 in lost compensation, after receiving the judge’s instructions that they must rule for the employee if he proved by a preponderance of the evidence that “age was a motivating factor” in his demotion. “However,” the judge instructed, the jury must rule for the employer if the employer proves by the preponderance of the evidence that the employer would have demoted Gross “regardless of his age.” This instruction tracked settled law. But the Supreme Court majority changed the law, and held that Gross and others in his situation needed to show that age was the “but for” cause of their adverse treatment, and that evidence that age was a motivating factor would not shift the burden of proof to the employer to prove that the adverse action would have occurred regardless of the employee’s age.
After the Supreme Court bounced him back to square one, Mr. Gross testified before Congress that the conservative Justices had “hijacked” his case to make an ideological point. His view cannot be dismissed as sour grapes. On the contrary, this 5-4 reversal of the jury verdict in Mr. Gross’ favor creates a veritable perfect storm for older workers. Numerous surveys show that the current financial crisis has forced older workers at all economic levels to shelve plans for retirement, and attempt to stay in, or re-enter the job market. Or hope to. When recession strikes, employers often target veteran employees in reductions in force, and disfavor older candidates for whatever new positions they may need to fill. Age discrimination claims submitted to the Equal Employment Opportunity Commission spiked nearly 30 percent in June 2009 compared with the same month a year earlier.
For these claimants, the Supreme Court’s decision offers a Catch-22. The aptly named decision will largely nullify the ADEA and guarantees that a vast proportion of age bias complaints will fail, whatever their merit. As Senate Health, Education, Labor, & Pensions Committee Chair Tom Harkin (who blogged for ACSblog here) observed in his committee’s March 6 hearing on the bill, in real-world workplaces, employers create paper trails purporting to justify adverse actions on legitimate business-related grounds. In such circumstances, it will rarely be possible to prove that age was the “but-for” cause (a standard some courts have interpreted to mean “exclusive”), rather than a “motivating” factor. Virtually any evidence of any other factors, whether business-related or not, suffices to throw a legitimate age discrimination victim out of court. Employee-side lawyers will know that, so they will rarely waste their time and resources to bring cases when age bias victims come to them for help. Business lawyers will also know that, and will counsel clients that they have nothing to fear if they pay lip-service to the ADEA but ignore it in practice.
As noted above, few cases confirm more clearly than Gross v. FBL President Obama’s observation that recent conservative judicial activism “ignores the will of Congress” and “democratic processes.” “Not only,” Justice Stevens wrote in his impassioned dissent, did the Court’s own precedents reject the “but-for” standard, but “so did Congress when it amended Title VII (of the 1964 Civil Rights Act) in 1991.” Moreover, the majority’s “far-reaching” new rule answered a question completely different from the one the parties had raised with the Court or the courts below and which the Court “granted certiorari to decide.”
When issued a bit less than a year ago, the Gross decision provoked indignant opposition on Capitol Hill, and on October 6, 2009, Senators Harkin and Patrick Leahy and Representative George Miller, simultaneously introduced identical corrective bills, entitled the Protecting Older Workers Against Discrimination Act. The fact that legislative hearings have now occurred on both sides of the Capitol indicates that Congress may well restore equal opportunity guarantees for older workers – just as it did in February 2009, when it overturned the infamous 2007 5-4 Ledbetter v. Goodyear decision that undermined equal pay opportunity safeguards in Title VII. Only through such prompt action can Congress prevent the further metastasizing of this threat to the economic security of older Americans, and all Americans.
Simon Lazarus is Public Policy Counsel for the National Senior Citizens Law Center, where he is responsible for the Washington DC advocacy effort of NSCLC’s Federal Rights Project. He writes frequently on the politics of judicial nominations, on Congressional authority to protect ordinary Americans’ basic needs, and on the ability of individuals to enforce rights under federal and state law. His articles have appeared in the Atlantic, the Washington Post, The American Prospect, Roll Call, and Huffington Post. His DePaul Law Review article, “Federalism R.I.P.? Did the Roberts Hearings Junk the Rehnquist Court’s Federalism Revolution?,” expanded an issue brief he authored for the American Constitution Society. His ACS issue brief, “Mandatory Health Insurance: Is it Constitutional?,” has been widely referenced in the current debate. His Atlantic article, “The Most Dangerous Branch?”, was republished in two anthologies, The Best American Political Writing 2003, Royce Flippin, ed., and Principles and Practice of American Politics: Classic and Contemporary Readings, 2d ed., Samuel Kernell and Steven S. Smith, eds. (CQ Press 2003). Si has served as Associate Director of President Jimmy Carter’s White House Domestic Policy Staff (1977-81), as a partner in Powell, Goldstein, Frazer, and Murphy LLP (1981-2002), and as Senior Counsel to Sidley Austin LLP (2002-2006). A Trustee of the Center for Law and Social Policy, he graduated from Yale Law School, where he was Note & Comment Editor of the Yale Law Journal.
Sergio Eduardo Munoz is a staff attorney for the Federal Rights Project. Most recently, he was the Public Policy Director of a health reform organization where he coordinated advocacy for the amelioration of health difficulties facing adolescents of color and limited income. This position built upon Sergio’s work directing Latino outreach in the greater Denver area for federal Democratic candidates in the successful 2008 elections. He specialized in bringing first-time voters into the political process, preventing voter suppression, and laying the groundwork for a sustainable and diverse political majority. A graduate of Brown University and the University of Michigan Law School, he has completed legal fellowships at the ACLU of Michigan, the Center for Reproductive Rights, and the Pediatric Advocacy Initiative. Prior to starting law school, Sergio was a social worker for foster children with medical conditions and a civil rights and liberties investigator of police misconduct in New York City.
Government workers witnessed a scene yesterday horrifically reminiscent of the Oklahoma City terrorist attack the last time a Democrat occupied the White House. A suicide attack was launched in Austin, Texas by a man who chose to assault government workers as an expression of his rage against government policies. While it is easy to see this as an act of a deranged individual, it is not unreasonable to consider the role rhetoric against government workers plays in fueling this rage.
When Senator Jim DeMint (R-SC) sees a government worker in uniform such as a TSA Officer or U.S. Capitol Police Officer he sees a potential threat. These officers, sworn to protect and serve are potential ‘union bosses’ in his mind and may use the right to collectively bargain as a tool to control security.
TSA officers continue to organize as they serve the American people while they await the fulfillment of President Barack Obama’s promise to permit them collective bargaining rights. Sen. DeMint successfully obstructed the confirmation of Errol Souther as TSA Administrator saying the appointee “has not been forthcoming about whether he’ll give union bosses control of our airport security, which is one of the most important decisions he’ll make as head of the TSA.” While Sen. DeMint may not realize that ‘union bosses’ come out of the workforce and are elected unlike corporate bosses, the recent Supreme Court decision provides millions of reasons to continue to oppose the right to organize.
But what if this rhetoric suggesting that government workers are a threat if they organize puts these workers in danger from anti-government extremists? Terms such as ‘bureaucrats’ are used to dehumanize those who serve the America people each day. It is this dehumanizing rhetoric that makes it easier to morph the person into the policy. Thus an attack on the person becomes an attack on the policy and can be justified in the mind of a terrorist. Sen. DeMint is presumably opposing TSA collective bargaining rights as a fundraising tactic (although he is protected by officers with those rights).
Yesterday that tactic, that hate speech against government workers may have contributed to a tragedy in Austin.
This article originally appeared in the Washington DC Examineron February 19, 2010. Reprinted with permission.
About the Author: Ron Moore is a freelance writer living in Silver Spring, Maryland with decades of service in the grassroots community as a local union president, union organizer, national AFL-CIO staff, and writer for the A. Philip Randolph Institute. Contact Ron at email@example.com.
Massachusetts voters sent a strong signal to Washington lawmakers Tuesday that they want results—and aren’t seeing any. Not on health care reform, not on job creation and not on fixing the nation’s economy.
Voters also sent another powerful message for Democrats: Ignore the working class at your peril.
Some 79 percent of voters polled on election night said the most important issue for them was electing a candidate who will strengthen the economy and create more jobs. Controlling health care costs was next on their list, with 54 percent citing that issue as the main determinant of their vote.
The poll, conducted by Hart Research Associates among 810 voters for the AFL-CIO on the night of the election, also found that although voters without a college degree favored Barack Obama by 21 percentage points in the 2008 election, Democratic candidate Martha Coakley lost that same group by a 20-point margin.
And as AFL-CIO Richard Trumka has pointed out, Massachusetts voters have the same goals for reforming health care, creating good jobs and strengthening the economy as they did in November 2008—but President Obama and the Democrats have done too little:
“Voters showed they don’t think Democrats have overreached—they think that the Democrats underreached.”
In fact, voters were not worried about Democratic “overreach”—47 percent said their bigger concern about Democrats is that they haven’t succeeded in making needed change rather than tried to make too many changes too quickly (32 percent). Even voters for Scott Brown were more concerned about a lack of change (50 percent) than about trying to make too many changes too quickly (43 percent).
These results puts a lie to the corporate media spin that Democrats have gone “too far” in pushing a reform agenda.
Nor was the election result about health care reform. Brown actually lost among the 59 percent of voters who picked health care as one of their top two voting issues (50 percent for Coakley and 46 percent for Brown). Voters for Brown (55 percent ) were less likely to cite health care as a top issue than were voters for Coakley (66 percent).
The election also should be a wake-up call for those in Washington who support taxing working families’ health care. Voters who thought their health care would be taxed voted by 64 percent for Brown, while those who did not think their health care would be taxed voted by 54 percent to 40 percent for Coakley.
Our polling results show the election was not an endorsement of a Republican agenda or a call to abandon health care reform. Voters strongly disapprove of the job being done by congressional Republicans (26 percent approve and 58 percent disapprove), a much lower rating than they give to congressional Democrats (37 percent approve and 51 percent disapprove).
Other polls show the need for Democrats in Congress to take immediate action to create jobs, reform health care, stop catering to Wall Street and address the needs of America’s working class. As John Judis wrote, the election showed Democrats have lost ground primarily among white working and middle-class voters and senior citizens.
The Suffolk University poll in Massachusetts…singled out two white working-class towns, Gardner and Fitchburg, as bellwethers. Obama won Gardner, where Democrats hold a 3-1 registrations edge, by 59 percent to 31 percent in 2008. Brown won it by 56 percent to 42 percent. Obama won Fitchburg, with a similar Democratic edge, by 60 percent to 38 percent in 2008. Brown won it by 59 percent to 40 percent. That suggests a fairly dramatic shift among white working-class voters.
Summarizing the findings from election night polling conducted by Research 2000 Massachusetts Poll, MoveOn.org said the results show voters worry that Democrats in power “have not done enough to combat the policies of the Bush era.”
Both sets of voters wanted stronger, more progressive action on health care reform as well. In summary, the poll shows that the party who fights corporate interests—especially on making the economy work for most Americans—will win the confidence of the voters.
The working class has spoken. Will Democrats listen?
*This post was crossposted from the AFL-CIO blog on January 21, 2010. Reprinted with permission.