Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘wage’

Baltimore May Be the Next City to Adopt a $15 Minimum Wage

Tuesday, June 21st, 2016

Bruce Vail

The national movement toward a minimum wage of $15 an hour is picking up steam in Baltimore, with a key test of strength for the local movement expected before the end of the summer.

The City Council’s Labor Committee met this week to begin the process of moving legislation to a vote, hearing testimony from supporters and opponents, and setting the stage for a full Council vote in late July or August.

“We’re making progress. I’m encouraged,” says Councilwoman Mary Pat Clarke (D), the chief sponsor of the legislation. Powerful opposition from Baltimore business interests is apparent, she tells In These Times, but that is to be expected. On the other hand, support is strong from a majority of the members, Clarke adds, so proponents are pushing forward for a full Council vote just as soon as practical.

“We hope to get this passed in August or September,” says Ricarra Jones, a political organizer for 1199SEIU. Opponents are “trotting out the same old discredited (economic) theories,” she says, but the momentum of successful $15 minimum wage fights in California, New York, Seattle, and Washington, D.C., should help push the Baltimore effort forward.

Jones says local labor unions are rallying in favor of the higher minimum wage. Aside from SEIU, prominent in the coalition are the Baltimore Teachers Union (an affiliate of American Federation of Teachers), the American Federation of State, County and Municipal Employees (AFSCME), and UNITE HERE. Ernie Grecco, President of the Metropolitan Baltimore Council AFL-CIO Unions, adds that support is “unanimous’ among the 160 local labor organizations affiliated with the group.

As reported earlier at In These Times, Clarke’s bill would raise the minimum wage in steps from the current $8.25 an hour to $15 by 2020. It would then establish a cost of living adjustment (COLA) so that the wage would rise annually thereafter, based on inflation statistics. Significantly, it would also eliminate the so-called “tipped wage,” the special sub-minimum of $3.63 an hour that applies to waiters, waitresses, bartenders, and other servers who receive tips as part of their daily work.

Melvin R. Thompson, a lobbyist for the Restaurant Association of Maryland, focused on the tipped wage during his testimony to the Labor Committee June 15. “Passage of this legislation will force many employers to eliminate jobs because paying such high minimum wages to unskilled, entry-level workers will be unsustainable for businesses that utilize such labor. If passed, this legislation will ultimately hurt the very people it is intended to help,” he told the committee.

The Restaurant Association commissioned a study that found the $15 minimum would cause the loss of about 3,500 jobs in the city, Thompson added. One restaurant manager, identified as an official of the Ruth’s Chris Steak House chain, asserted that the chain would close at least one, or possibly two, of its locations in the city if $15 legislation passed.

These voices against raising the wage were joined by executives from the Greater Baltimore Committee and the Downtown Partnership of Baltimore, two influential Chamber of Commerce-like organizations representing business owners.

In sharp contrast to the well-tailored suits and slick presentations of the lobbyists was the testimony of Vonzella Barnes, a housekeeper at the Horseshoe Casino, a recently-opened gambling palace controlled by the multinational Caesars Entertainment Corp.

Hired at the opening of the casino two years ago at a wage of $9.50 an hour, she has had no raises, the 46-year-old mother of two testified to the Labor Committee. The cost of the two children, and other regular monthly expenses, means that “I constantly have to borrow money from my Mom to pay the rent,” she said. “At her age, I should be giving her money, not borrowing from her.”

Barnes wore her red UNITE HERE union t-shirt as she testified, signifying that many union workers in Baltimore would benefit from the $15 minimum wage. UNITE HERE and several other unions represent workers the casino, but even union wages in some of the lower-pay positions leave workers at near poverty levels.

Indeed, 1199SEIU members launched a series of short strikes against Baltimore’s Johns Hopkins Hospital in 2014 over a demand for a $15 minimum, but failed to achieve that is the final settlement. During that fight, it was exposed that hundreds of employees of the wealthy Hopkins Hospital were forced to rely on Medicaid, food stamps, housing subsidies, or other anti-poverty programs, to make ends meet.

Councilwoman Clarke linked her minimum wage proposal to Baltimore’s race riot last year, which exposed the dismal living conditions in the city’s low-income neighborhoods. “We’ve had this debate about minimum wage in Baltimore before, and the actions of the city have not been enough. This year has to be different – because last year was different. Baltimore has to change its ways,” she says.

This blog originally appeared at inthesetime.com on June 20, 2016. Reprinted with permission.

Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’sDaily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

Important Study Looks At Silicon Valley’s “Invisible” Low Wage Workers

Friday, April 1st, 2016

Dave Johnson“We knew the tech industry was booming, but we weren’t seeing that translate into an abundance of jobs for our communities – until we looked at the low-wage jobs in contracting industries. Those are growing fast, just like tech profits are. It’s no wonder that one in three working households in Silicon Valley can’t make ends meet when these growing industries pay wages that barely cover rent.”
– Derecka Mehrens, Executive Director of Working Partnerships, USA.

Working Partnerships USA and Silicon Valley Rising released a report Wednesday, Tech’s Invisible Workforce, that looks at the contract industry workers at Silicon Valley’s “booming” tech companies.

In the last two-and-a-half decades, the number of Silicon Valley “second-class” jobs in potential contract industries has grown three times faster than overall Silicon Valley employment. These contractors and subcontractors jobs are disproportionately filled by Black and Latino workers compared to direct tech employees, and these workers receive much lower wages. As a result, Silicon Valley’s inequality and occupation segregation is amplified, especially among people of color.

The report finds that direct tech employees earn $113,300. Contractor and subcontractor tech industry workers – workers employed indirectly rather than treated as legitimate employees – are paid much less. White-collar workers in contract industries average $53,200 and blue-collar workers in contract industries average $19,900.

Along with this wage differential, as income drops the proportion of the workforce that is comprised of Black and Latino workers goes up. According to the report, Black or Latino workers make up, on average:

? 10 percent of Silicon Valley’s direct tech workforce.
? An estimated 26 percent of the white-collar contract industry workforce.
? An estimated 58 percent of the blue-collar contract industry workforce.

Lydia DePillis writes about this report at The Washington Post’s Wonkblog, in “What we know about the people who clean the floors in Silicon Valley,”

Silicon Valley companies have gotten a lot of heat in recent years for failing to recruit people black and Hispanic people into their ranks. But if you factor in contractors and others whose jobs bring them inside those companies, the industry appears bit more inclusive — just perhaps not in the way one might hope.

At one time in history, the janitors, bus drivers, food service workers, and security guards who staff corporate campuses might have been employed directly by the businesses where they cooked lunches and cleaned floors. That’s become less and less true in recent decades, according to a new analysis of labor data by researchers at the University of California – Santa Cruz — especially in Silicon Valley.

The Road to Responsible Contracting

The report concludes with a section on how companies could contract out jobs responsibly.

Silicon Valley Rising calls on our region’s leading businesses to commit to the following principles:

Responsibility: Ensure that their subcontracted workers are paid a livable wage, receive equitable benefits, have the right to a voice at work without fear of discrimination or retaliation, do not suffer mass layoffs when contracts change hands, and are protected from misclassification and other forms of wage theft.

Transparency: Release public data on their subcontracted workforces, including diversity, pay, and benefit data for each subcontractor.

Inclusion: Invest in building a community where janitors, security officers, cafeteria workers, teachers, nurses, firefighters and other non-tech workers can afford to live. Support access to full-time work, affordable housing, an accessible, world-class public transit system, and high-quality education for low-wage workers and their children.

Opportunity: Work with advocates to explore new approaches to create education and career pathways for contract workers and their families to move into core tech jobs.

The technology industry faces a clear choice. It can continue the status quo of exclusive jobs and exclusionary growth, widening the existing racial, gender and income gaps and accelerating the race to the bottom. Or it can wield its enormous economic influence combined with its capacity for innovative solutions to become a true global pioneer – to not just disrupt markets and technology, but to disrupt inequality.

Click to read the report, Tech’s Invisible Workforce.

See Also

Campaign for America’s Future has been covering Silicon Valley Rising’s fight to improve conditions for this “invisible” workforce.

The Silicon Valley Rising launch: “Silicon Valley Rising Fights for Worker Justice

The fight: “Silicon Valley Rising Fights To Give Part-Timers “Opportunity to Work”

Related: “Tax Scams, Google Buses Mean Silicon Valley Is #StuckInTraffic

This blog originally appeared at ourfuture.org on March 30, 2016.  Reprinted with permission.

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

Pelosi Is Right: We Shouldn’t Have To Wait For A Minimum Wage Increase

Tuesday, October 14th, 2014

Isaiah J. PooleAdvocates for workers have declared today “Minimum Wage Day,” as the 10th day of the 10th month calls attention to the demand for an increase in the minimum wage to $10.10 an hour, from the current $7.25.

House Democratic Leader Nancy Pelosi marked the day by calling on Congress to drop its campaigning and come back to Washington to vote on a minimum wage increase, as well as an authorization for combat operations against the Islamic State terrorists in Iraq and Syria.

The Hill reported:

“The American people deserve an economy that works for everyone, not just the wealthy and well-connected,” Pelosi said Friday during a press call. “So urgent is this that I think we should come back [to Washington] before the elections.”

That is unlikely to happen, given that the Republican leadership in both houses of Congress have actually gone out of their way to block consideration of a minimum wage increase. But in this case there is a difference between a demand being unrealistic and being unreasonable.

There is real urgency to the need for low-income workers to see an increase in their wages. The federal wage has not increased since 2009, when the latest in a series of increases that started in 2007 took effect. Since then, to quote a group of former lawmakers who wrote a joint op-ed in USA Today, “Groceries cost 20% more, a gallon of gas costs 25%more, and average tuition at a community college increased 44%. But the minimum wage remains at $7.25. If it had kept up with inflation since 1968, it would be almost $10.70 today.”

Who were these lawmakers, by the way? Four Republican former members of Congress: Jack Quinn, Mike Castle, Steve LaTourette and Connie Morella. But these Republicans aren’t cut from the conservative extremist cloth that has now blinded their party’s leadership. They get, as do most of the American public, that you don’t grow an economy by holding down wages, by keeping people who are the backbone of our economy in a state of chronic subsistence and struggle.

Yet on the same day that many Democrats and moderate Republicans are calling on lawmakers to act on increasing the minimum wage comes news that one of the heroes of the tea-party Republicanism, Wisconsin Gov. Scott Walker, sees no problem in holding workers down to $7.25 an hour.

According to The Huffington Post, 100 of the state’s workers filed a complaint with the state Department of Workforce Development last month saying that the wages they received in their jobs – at or just above the federal $7.25 minimum – are in violation of the state’s living wage law, which requires wages “be adequate to permit any employee to maintain herself or himself in minimum comfort, decency, physical and moral well-being.”

The state’s response? “The Department has determined that there is no reasonable cause to believe that the wages paid to the complainants are not a living wage.”

No reason to believe, they say, despite the experience of 700,000 workers who, according to a report done in conjunction with the Economic Policy Institute, earn “poverty wages” in Wisconsin. A “poverty wage” in Wisconsin is $11.36 an hour, according to the report – the point below which a full-time worker cannot keep a family of four above the poverty line. The median age of a worker working poverty wages is 30, and 60 percent of the people in this group are women.

Walker and the federal lawmakers who hew to his right-wing ideology are willing to go all out to protect the profit margins of big corporations and the über-wealthy, but feel no urgency to address the wage stagnation and real suffering of working people.

But for millions of us next month’s rent will come due in about three weeks, and the utility bills and perhaps a car payment, student loan bill or a health insurance premium on top of that. Those bills won’t wait. Neither will election day, when members of Congress should be held to account for not acting with urgency toward – and in fact getting in the way of – an increase in the minimum wage.

This blog originally appeared in ourfuture.org on October 10, 2014. Reprinted with permission. http://ourfuture.org/20141010/pelosi-is-right-we-shouldnt-have-to-wait-for-a-minimum-wage-increase

About the Author: Isaiah J. Poole 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.

On Wages, The Economist Agrees

Wednesday, September 17th, 2014

jonathan-tasiniThe other day I wrote about a campaign by the International Trade Union Confederation t push the G20 to make hiking wages   the cornerstone of any policy to create a sustained and healthy global economy. The Economist agrees.

The magazine had a relatively long piece in its September 6th edition (subscription paywall) entitled, “The big freeze: Throughout the rich world, wages are struck”.  After looking at a variety of countries, and pronouncing the situation grim, the last paragraph really is what mattered:

Wages, of course, are not just important to central bankers. Weak pay saps revenue from income tax and social-security contributions, making it harder for governments to mend public finances. The lack of growth in real wages hurts household finances, too, keeping consumers tight-fisted. A healthy and sustained recovery in the rich world will remain elusive until the pay squeeze ends. [emphasis added]

“This blog originally appeared in Workinglife.org on September 10, 2014. Reprinted with permission. http://www.workinglife.org/2014/09/10/on-wages-the-economist-agrees/

About the Author: Jonathan Tasini has done the traditional press routine including The Wall Street Journal, CNBC, Business Week, Playboy Magazine, The Washington Post, The New York Times and The Los Angeles Times. One day, back when blogs were just starting out, he created Working Life. He has also written four books: It’s Not Raining, We’re Being Peed On: The Scam of the Deficit Crisis (2010 and, then, the updated 2nd edition in 2013); The Audacity of Greed: Free Markets, Corporate Thieves and The Looting of America (2009); They Get Cake, We Eat Crumbs: The Real Story Behind Today’s Unfair Economy, an average reader’s guide to the economy (1997); and The Edifice Complex: Rebuilding the American Labor Movement to Face the Global Economy, a critique and prescriptive analysis of the labor movement (1995).

Cop Sues for Overtime for E-mail Checking

Saturday, February 9th, 2013

mike elkA Chicago police offer is suing the city for overtime pay after being forced to answer emails outside of work. The lawsuit could have far reaching effects for the many employees across industries who are expected to respond to work emails in off hours. From AP:

“Everybody can relate to this because people are being asked all the time these days to work for free and they are being told to work for free using their phones,” attorney Paul Geiger said.

Earlier Wednesday, attorneys for both Allen and the city told a judge they had agreed on the wording of documents that will be sent to other officers asking if they want to join the lawsuit.

According to the suit, police brass pressured subordinates in the department’s organized crime bureau to answer work-related calls and emails on their BlackBerrys, and then also dissuaded the officers from filing for overtime.

“A culture has developed where police officers feel compelled to work for free in order to possibly gain a promotion and/or maintain their coveted assignment,” according to a plaintiff filing.

This post was originally posted on Working In These Times on Feb. 8, 2013. Reprinted with Permission.

About the Author: Mike Elk is an In These Times Staff Writer and a regular contributor to the labor blog Working In These Times. He can be reached at mike@inthesetimes.com.

As New Jobs Return, Employers Slash Wages

Wednesday, December 26th, 2012
New data has shown that while a majority of jobs eliminated during the downturn were in what we describe as the middle range of wages, the great majority of jobs added as the economy improves were low paying jobs, reported Katherine Rampell in the business section of the New York Times on Friday, August 31, 2012. This was documented in a study done by the National Employment Law Project.
 The study by Annette Bernhardt examined 366 occupations followed by the Labor Department. Bernhardt separated them into three equal groups by wages, with each representing a third of American employment in 2008.
     The middle third consisted of jobs like construction, manufacturing, and information. These jobs paid median hourly wages of $13.84 to $21.13. Over 60% of these jobs were lost during the recession. When the middle third jobs returned, they represented only 22% of total employment growth.
      In the category of higher wage occupations, those that had a median wage of $21.14 to $54.55 reflected only 19% of job losses. However, when growth in the economy began, only 20% of new jobs were the result of the upturn. This was only a 1% increase which doesn’t even cover new entrants into the labor force.
     Low wage jobs with median hourly wages of $7.69 to $13.83 accounted for 21% of job losses during the downturn. The startling fact is that low wage jobs now constitute 58% of all job growth. The jobs with the fastest growth were retail sales at a median wage of $10.97 per hour. At this salary, workers would be eligible for food stamps.
      Each category has grown by more than 300,000 workers since June 2009. Many of these new paying jobs were taken by recent high school and college graduates who were previously unemployed. Others were taken by older workers who formerly had jobs that paid much more, who were desperate.
     Mid-wage and middle class jobs have been disappearing at a rapid rate. Some of this is due to automation, but the bulk of the job loss is the result of employers taking millions of jobs overseas to low wage paying countries.
     At the same time, corporations and their Republican robots are passing so called “Right to Work” legislation which further erodes the wage structure. The labor movement, the trade unions, and their progressive allies are the only institutions that can bring back middle class livable wages.
This post was originally posted on Union Review on December 19, 2012. Reprinted with Permission.
 
About the Author: Seymour Slavin is an Independent Nonprofit Organization Management Professional at Union Review.

Public Employees Under Attack

Wednesday, October 13th, 2010

Image: James ParksThe people who teach our children, protect us from crime, put out fires in our homes and make sure our water is clean are under attack. Conservative pundits and politicians across the country are using the economic crisis to attack public employees and portray them as privileged compared with everyone else. They use the fact that public employees, many of whom are union members, have been able to keep their well-funded pensions, reasonable hours and decent pay to stir up rage from those who have lost these benefits in the private sector.

Many cash-starved state and local governments have used these same arguments as a cover to cut services, personnel and pension benefits to balance their budgets and weaken unions.

Several new studies should put those arguments to rest. The Economic Policy Institute (EPI) found that state and local public employees are actually underpaid. In “Debunking the Myth of the Overcompensated Public Employee: The Evidence,” Rutgers University professor Jeffrey Keefe found that, on average, state and local government workers are paid 3.75 percent less than similar workers in the private sector.

The study also found the benefits that state and local government workers receive do not offset the lower wages they are paid. The differential is greatest for doctors, lawyers and professional employees, the study found. Read Keefe’s report here.

Public employees also work hard for their lower pay, often putting themselves in danger. According to the Center for Economic and Policy Research (CEPR), nearly two in five state and local government workers—more than 1.4 million— worked in either physically strenuous jobs or jobs with difficult working conditions. Notably, almost half (47.5 percent) of local government employees between ages 55 and 65 held such jobs. If the retirement age were increased, the report says, many of these workers, due to the physical challenges of their jobs, would have to leave the workforce before they are eligible for full retirement benefits. Read the CEPR report here.

Writing in the New York Daily News, Dan Morris of the nonpartisan Drum Major Institute for Public Policy says the attacks on public employees are absurd and dangerous.

…if public-sector workers become cheap, expendable labor, they will contribute less to the tax base and spend less, blunting private-sector job creation. A healthy public sector is just as good for the investment banker as it is for the unionized electrician.

EPI estimates that every 100 public-sector layoffs result in about 30 private-sector layoffs because the subsequent loss of income dampens consumer spending and thus weakens the economy. Says Morris:

The race to the bottom is a callous attempt to lower expectations for employment at a time when millions of people are counting on them to be raised. No victory worthy of the name can be achieved on those terms.

This article was originally posted on AFL-CIO Now Blog.

About The Author: John Petro is an urban policy analyst at the Drum Major Institute for Public Policy. He runs the Progressive Urban Model Policies (PUMP) Project, a first-of-its-kind initiative to organize and share best practices in policy design and implementation. His writing on urban issues has appeared in the San Francisco Chronicle and his recent research has been covered in Politico, The New York Times, Reuters, and other media outlets.

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