Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Robert Borosage’

When the Parades Are Over, Who Stands With Unions?

Wednesday, September 6th, 2017

The Labor Day parades are over. The bands have packed up. The muscular speeches celebrating workers are finished. The trash is getting collected from parks across the country.  And now conservative politicians from Trump on down will revive their systematic efforts to weaken unions and undermine workers.

Trump – despite all the populist bunting that decorates his speeches – sustains the deeply entrenched Republican antipathy to organized workers. Their attack is relentless.

Trump’s budget calls for deep cuts in the Labor Department, eviscerating job training programs and cutting – by 40 percent – the agency that does research on workplace safety. It would eliminate the program that funds education of workers on how to avoid workplace hazards. It even savages money for mine safety enforcement for the miners Trump claims to love.

Trump is systematically reversing any Obama rule that aided workers. He signed legislation scrapping the rule that required federal contractors to disclose violations of workplace safety and employment and anti-discrimination laws. His Labor Secretary has announced his intention to strip millions of workers of the overtime pay they would have received under Obama DOL regulations.

Trump is creating a pro-business majority at the National Labor Relations Board, which will roll back Obama’s efforts to make it easier for workers to organize, and make it possible to hold home companies responsible for the employment practices of their franchisees.

The GOP’s Anti-Union Strategy

This is simply standard operating procedure for today’s Republican party. Long ago, Republicans realized that organized labor was a central “pillar,” as Grover Norquist described it, of Democratic Party strength. Now Republican office holders at every level – from county officials to statehouses to judges – know that their job is to weaken labor unions. From right to work laws to administrative regulations to court challenges, Republicans sustain an unrelenting attack.

And aided by our perverse globalization strategies, they’ve been remarkably successful. Unions are down to about 7 percent of the private workforce. Public employee unions, a relative stronghold, are facing court challenges – essentially allowing workers to enjoy the benefits of union negotiations without paying dues — that will decimate their membership.

True conservatives would embrace unions. They are a classic “mediating institution,” a voluntary civic organization between government and the individual. Unions increase the voice and power of workers in the workplace, helping to keep executive accountable, and to protect workers from abuse. They also educate their members, teach democracy, and are central to community volunteer and service efforts. They teach and practice democratic citizenship.

The modern Republican Party, of course, is the party of big business and big money. It isn’t conservative; it is partisan. And weakening unions is a constant target.

While Republicans understand how important unions are to Democrats and to workers, Democrats don’t seem to get it. Sure, they line up to get union donations; most will vote to defend unions and worker programs. But as the money in politics has gotten bigger and the unions have gotten weaker, the Wall Street wing of the Democratic Party has become more powerful.

The result is clear. When Republicans get control, they attack unions relentlessly. When Democrats gain control, as they did in 2012 with the election of Barack Obama and Democratic majorities in both houses, labor law reform, empowering workers to organize is not a priority. Obama essentially told unions that if they could get the votes, he’d sign the law, but he wasn’t leading the charge. And so as under Carter and Clinton, changing the law to make it easier for workers to organize and bargain collectively didn’t happen.

Unions Under Siege

Now unions are under siege. Yet it is hard to imagine how a small “d” democracy can be robust, or a large D Democratic Party can regain its mojo without a revived movement of workers. It’s time for Democrats at every level to realize: strengthening workers and their unions isn’t an elective; it’s a requirement and a first priority.

The loop works like this: Unions are in decline. As a result, unions lose influence inside the Democratic Party. The Democrats then feel no pressure to stem unions’ decline, and the economically disadvantaged lose what was once their most powerful advocate. Then the cycle continues. We cannot revive unions, and we have no template for egalitarian politics without them.

Unions aren’t simply economic actors. They’re political actors. Labor still needs the Democrats. The Democrats, more than they realize, still need labor. But most of all, all those who want to build a fairer society need their partnership.

Republican elites understand the doom loop. Big business, small business, and Tea Party alike have pushed hard against unions. As the parties have polarized, Republicans have taken the gloves off, risking the votes of the 40 percent of union members who back Republicans in order to crush a pillar of the Democratic coalition. Even President Bernie Sanders would have real trouble rebuilding unions in the face of a Republican Congress and a federal judiciary eager to swat down pro-labor executive action.

Even without Republican politicians digging their graves, labor unions face deep challenges. In the private sector, unions must sign contracts workplace by workplace. Gawker writers here and home-care workers there will continue to organize their workplaces, but the barriers remain dauntingly high. In the public sector, unions have stood steady. But cops and teachers alike face blowback for putting their own prerogatives above the public interest. And if the Supreme Court bans the collection of agency fees in the public sector (thus imposing “right to work”), public-sector union membership could halve in a decade.

This blog was originally published at OurFuture.org on September 5, 2017. Reprinted with permission. 

About the Author: Robert Borosage is the founder and president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future. The organizations were launched by 100 prominent Americans to develop the policies, message and issue campaigns to help forge an enduring majority for progressive change in America. Mr. Borosage writes widely on political, economic and national security issues. He is a Contributing Editor at The Nation magazine, and a regular blogger at The Huffington Post. His articles have appeared in The American Prospect, The Washington Post,Tthe New York Times and the Philadelphia Inquirer. He edits the Campaign’s Making Sense issues guides, and is co-editor of Taking Back America (with Katrina Vanden Heuvel) and The Next Agenda (with Roger Hickey).

The Economy: The New Normal Isn’t

Wednesday, December 9th, 2015

Robert-Borosage_The November jobs report – 211,000 jobs with the headline unemployment rate staying at 5 percent – met “expectations.” It is now virtually inevitable that the Federal Reserve will begin raising interest rates at its December 15-16 meetings, as Fed Chair Janet Yellen indicated in her congressional testimony yesterday.

The Federal Reserve action essentially declares this economy the new normal. The unemployment rate has dropped from its 10 percent depths in the Great Recession to 5 percent. The economy has enjoyed a record 69 months of private sector jobs growth. Fed Chair Janet Yellen suggests the U.S. economy has sufficient momentum to continue to grow.

While inflation remains far below the Fed “target” of 2 percent, Yellen anticipates that the dollar won’t continue to rise in value and oil won’t continue to fall, suggesting that inflation might pick up in future months. So, she argues, it is time for the Fed to begin – in baby steps and very cautiously – to raise interest rates.

But the new normal is neither normal nor acceptable. Nearly 16 million people are still in need of full-time work. The percentage of the civilian population working or actively looking for work remained virtually unchanged at 62.5 percent, near a 40-year low (back to when women began entering the workforce in large numbers).

African-Americans suffer unemployment rates at 9.4 percent, almost twice the national average. Only one in five of young African-Americans – ages 16 to 19 – are employed.

We still haven’t returned to the same levels of employment, counting new entrants, that we enjoyed before the recession in 2007. Wages are still stagnant, up barely over 2 percent for the year for non-supervisory workers, not close to keeping up with the cost of health care or college or child care.

Worse, the Fed is tightening against the threat of future inflation that exists only in its imagination. And it does so in a world dangerously close to global downturn. Europe verges on deflation, with the European bank extending extraordinary measures to fend off decline. China is slowing faster than expected or admitted. Japan is back in recession. Brazil is suffering the deepest downturn since the Great Depression, with other emerging market countries in decline.

The U.S. economy is not strong enough to be the buyer of last resort for a world desperate to export its way to recovery. The U.S. dollar has already dramatically increased in value, with the Euro and other currencies weakening. This makes imports cheaper and exports more expensive. Already U.S. manufacturing is getting hit.

The Fed is understandably eager to begin raising rates after keeping them near zero for seven years. Free money feeds the bankers’ casino, inflates bubbles, and makes it easier for corporations to doctor their balance sheets. What is missing is any sensible policy from the Congress to get this economy going. Corporations are parking over two trillion abroad to avoid paying taxes. If Congress weren’t ruled by ideologues and bounders, it would force them to pay their fair share of taxes and use that money to rebuild the country, putting people to work in work that needs to be done.

Both the Fed Chair Yellen and the IMF have been calling for action from the Congress without success. Instead, Congress turns itself inside out to pass a modest highway bill that won’t come close to addressing the continued decline in our infrastructure.

This world is closer to a global recession than to healthy normal economic growth. The Fed’s likely action will be modest. But at a time when we need far bolder action across the globe, the Fed is signaling success when it ought to be raising warning flags.

This blog originally appeared at OurFuture.org on December 4, 2015. Reprinted with permission.

About the Author: Robert Borosage is the Co-Director of the Campaign for America’s Future.

 

Jobs Report: Flat Wages, Shrinking Workforce

Monday, July 6th, 2015

Robert-Borosage_The June Bureau of Labor Statistics jobs report shows continued growth — 223,000 new jobs added with the official unemployment rate declining to 5.3%. Jobs growth remains steady — rising for 57 straight months, now setting a new record each month – but slow, lagging previous recoveries.   The decline in the unemployment rate was largely due to 432,000 people leaving the labor force, reversing the increase that took place in May.

The headline unemployment figure is always misleading. Nearly 17 million people are still in need of full-time work. Long-term unemployment has declined, but remains higher than before the great recession. The employment-population ratio has also not recovered, remaining at 59.3%, marginally lower than a year ago. The portion of the working age population that is employed or wants a job, the labor force participation rate, declined last month and is lower than a year ago. This is not a picture of robust growth.

The BLS reports are important largely as signposts for the Federal Reserve and its pending decision on when to raise interest rates. Fed Chair Janet Yellen sensibly has been focused on disappointing wage growth and looking for “additional strength in the labor market.” She won’t find much that is encouraging in this report.   In this month’s report, hourly wages showed no growth, with the yearly average up barely 2%, despite hikes in the minimum wage by more and more cities and states and more and more companies. Average hours worked remained steady.

Speculation is that the Federal Reserve is headed towards beginning to wage interest rates in September. Higher interest rates will be a drag on growth, jobs and thus wages. The Fed would be well advised to wait until more workers find jobs, and the greater demand for workers is reflected in continuing rising wages.

Government employment showed no increase. The US Congress continues to block any investment to rebuild our decrepit infrastructure at a time of record low interest rates. With the US able to borrow for virtually nothing, an investment in infrastructure, as Larry Summers argues, would pay for itself, with even a minimum return in efficiency. No business leader with a whit of sense would refuse to grasp this opportunity. Perhaps Donald Trump who has built his fortune by making far riskier bets with borrowed money could explain this to his colleagues.

Manufacturing employment showed little change, adding 4,000 jobs. For the president to meet his pledge of adding 1 million manufacturing jobs in his second term, he would have to average over 32,000 a month. This seems less and less likely, as manufacturing is weakened by our rising trade deficits, resulting from the strong dollar and our perverse trade policies that the president is intent on extending.  The economy has gained only 38,000 manufacturing jobs in the first six months of this year.

The economy continues to add jobs, which is an indisputably good thing. But the pace is slow, and little of the recovery is reaching most Americans. Surveys show that Americans are growing more optimistic about the economy. This is reflected in rising non-revolving consumer credit – significantly student and car loans – which is outpacing after-tax income growth. If the Fed raises interest rates, these debts will grow more costly, putting a crimp on consumer demand. Again, with the Congress refusing to act sensibly, the Fed has every reason to wait until wages are rising and more Americans are working before starting to put on the brakes.

This blog was originally posted on Our Future on July 2, 2015. Reprinted with permission.

About the Author: The author’s name is Robert Borosage. Robert L. Borosage is the founder and president of the Institute for America’s Future and co-director of its sister organization, the Campaign for America’s Future. The organizations were launched by 100 prominent Americans to develop the policies, message and issue campaigns to help forge an enduring majority for progressive change in America. Mr. Borosage writes widely on political, economic and national security issues. He is a Contributing Editor at The Nation magazine, and a regular blogger at The Huffington Post. His articles have appeared in The American Prospect, The Washington Post,Tthe New York Times and the Philadelphia Inquirer. He edits the Campaign’s Making Sense issues guides, and is co-editor of Taking Back America (with Katrina Vanden Heuvel) and The Next Agenda (with Roger Hickey).

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