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Posts Tagged ‘walmart’

Kentucky Couple's ‘Ride for Respect’ at Walmart

Monday, June 3rd, 2013

berry craigJames and Trina Vetato knew about the freedom riders from history books.

This week, the Paducah, Ky., couple expects to join a civil rights movement-style protest against the world’s largest retailer. The Vetatos are activists in the employees’ group Organization United for Respect at Walmart, or OUR Walmart for short. Trina currently works at a Walmart store and James is a former Walmart employee.

Called the “Ride for Respect,” the demonstration at Walmart corporate headquarters in Bentonville, Ark., will be modeled on civil rights volunteers who rode buses into the South in the 1960s to protest Jim Crow racial injustice, says James Vetato.

Busloads of OUR Walmart members will converge on Bentonville from across the country. They will be in town for the annual shareholders’ meeting June 7. Vetato says he expects 300 or more OUR Walmart members to begin arriving the week before the meeting. Most of the protesters—including Trina Vetato—will be taking part in an unfair labor practice strike, says her husband.

The protest will go on the whole week before the meeting. We especially want to draw national attention to Walmart management’s threats and retaliation against workers who speak up for better pay, more hours and respect on the job.

Vetato worked at his wife’s store in Paducah. When he stood up for his rights, he says:

I was threatened and intimidated by management who made my life so miserable I finally quit.

Our Walmart wants better pay, benefits and working conditions. “Like the freedom riders, we will be standing up for dignity and respect and justice and will be protesting peacefully,” Vetato says.

OUR Walmart isn’t a union, but the United Food and Commercial Workers (UFCW) is helping the group, says Vetato.

Some other unions are in OUR Walmart’s corner, too. The Paducah-based Western Kentucky AFL-CIO Area Council unanimously passed a resolution expressing its solidarity with the workers’ struggle at Walmart.

This article was originally printed on AFL-CIO on June 2, 2013.  Reprinted with permission.

About the Author: Berry Craig is the recording secretary for the Paducah-based Western Kentucky AFL-CIO Area Council and a professor emeritus of history at West Kentucky Community and Technical College.  He is a former daily newspaper and Associated Press columnist and currently a member of AFT Local 1360.

Walmart Tells Workers Who Ask About Unions That Benefits And Vacation ‘Might Go Away’

Tuesday, December 18th, 2012

Walmart staves off unionization attempts in its stores by telling workers who ask about forming a union that they may lose benefits and vacation time, a potential violation of American labor law that could further inflame relations between the company and workers who picketed its stores on Black Friday and have been attempting to organize.

Walmart workers and labor advocates held protests outside the chain’s stores throughout Thanksgiving weekend, protesting the low wages it pays its workers. The company, which paid its chief executive $18.1 million and made $15 billion in profits last year, has fought off union attempts before, and now it tells its workers that unionization could lead to the loss of bonuses and vacation time, a spokesperson told Bloomberg BusinessWeek:

Walmart has been opposed to unions since Sam Walton opened his first store in Rogers, Ark., in 1962. These days, “we have human resources teams all over the country who are available to talk to associates, and we will get questions about joining a union,” says David Tovar, a spokesman for the company. “We would say: ‘Let us remind you of all that Walmart offers, and of what might go away. Quarterly bonuses might go away, vacation time might go away.’?”

Such tactics may not be illegal by themselves because they can be seen as predicting outcomes rather than threatening them, The Nation’s Josh Eidelson reported today. But the implication of such a “prediction” — that joining a union could be followed by actions resembling retaliation — is quite clear. Walmart’s anti-labor practices aren’t new: in 2008, the store’s workers spoke out about anti-union meetings they were forced to attend.

Though Walmart has long fought organization efforts in the United States, it sometimes letsworkers in other countries unionize — particularly when unionization is contingent on Walmart getting to enter a new country. In the U.S. though, it has responded to unionization efforts byshutting down departments, fighting legislative improvements to labor law, and now, telling workers that joining a union may cost them their bonus.

This post was originally posted on December 17, 2012 on ThinkProgress. Reprinted with Permission.

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

The Bangladeshi Triangle Shirtwaist Fire

Tuesday, December 11th, 2012

When I first read about the horrendous fire in Bangladesh, I immediately thought of the Triangle Shirtwaist Fire in New York in 1911 — more than 100 years ago. In many ways, nothing has changed. In some ways, some things have changed.

Today:

A Bangladeshi garment factory that was producing clothes for Wal-Mart, Disney,  and other major Western companies had lost its fire safety certification in June, five months before a blaze in the facility killed 112 workers, a fire official told the Associated Press.

Separately, the owner of the Tazreen factory told AP that he had only received permission to build a three-story facility but had expanded it illegally to eight stories and was adding a ninth at the time of the blaze…

The factory didn’t have any fire exits for its 1,400 workers, many of whom became trapped by the blaze. Investigators have said the death toll would have been far lower if there had been even a single emergency exit. Fire extinguishers in the building were left unused, either because they didn’t work or workers didn’t know how to use them.

100 years ago:

Near closing time on Saturday afternoon, March 25, 1911, a fire broke out on the top floors of the Asch Building in the Triangle Waist Company. Within minutes, the quiet spring afternoon erupted into madness, a terrifying moment in time, disrupting forever the lives of young workers. By the time the fire was over, 146 of the 500 employees had died. The survivors were left to live and relive those agonizing moments. The victims and their families, the people passing by who witnessed the desperate leaps from ninth floor windows, and the City of New York would never be the same.

The Triangle Fire tragically illustrated that fire inspections and precautions were woefully inadequate at the time. Workers recounted their helpless efforts to open the ninth floor doors to the Washington Place stairs. They and many others afterwards believed they were deliberately locked– owners had frequently locked the exit doors in the past, claiming that workers stole materials. For all practical purposes, the ninth floor fire escape in the Asch Building led nowhere, certainly not to safety, and it bent under the weight of the factory workers trying to escape the inferno. Others waited at the windows for the rescue workers only to discover that the firefighters’ ladders were several stories too short and the water from the hoses could not reach the top floors. Many chose to jump to their deaths rather than to burn alive.

Nothing has changed in 100 years — workers’ lives are thought of as expendable, corners are cut in the name of profit, whether the name is Triangle Waist Company or Wal-Mart.

What did change a bit in the wake of the 1911 fire was a renewed drive to unionize and strengthen health and safety laws. Out of the tragedy, workers mobilized.

Whether that will happen in Bangladesh is to be seen. It would be a great testament to those who died is, out of the ashes of the fire, workers organized to stop the survivors and others from being future victims of the greed of Wal-Mart and its global corporate ilk.

This post was originally posted on Working Life on December 7, 2012. Reprinted with Permission.

About the Author: Jonathan Tasini is a union leader and organizer, a social activist, and a commentator and writer on work, labor and the economy. From 1990 to April 2003, he served as president of the National Writers Union (United Auto Workers Local 1981). He was the lead plaintiff in Tasini vs. The New York Times, the landmark electronic rights case that took on the corporate media’s assault on the rights of thousands of freelance authors. He has also written four books, including the Audacity of Greed.

America Holding Walmart’s Feet to the Fire

Wednesday, December 5th, 2012

Finally, someone is holding Walmart directly accountable for the abuse of workers in its contracted warehouses. “Recent discovery has established that Walmart bears ultimate responsibility for the violations of state and federal law committed against plaintiff warehouse workers,” said a court document filed in Los Angeles.  

Walmart Targeted In Warehouse Worker Lawsuit – Huffington Post  

“Wal-Mart employs a network of contractors and subcontractors who have habitually broken the law to keep their labor costs low and profit margins high. We believe Wal-Mart knows exactly what is happening and is ultimately responsible for stealing millions of dollars from the low-wage warehouse workers who move Wal-Mart merchandise.”

Warehouse Workers Sue Wal-Mart for Back pay and Damages – ABC News/Univision 

Corporate Welfare: instead of taking a small partition of their record profits, or slightly cutting CEO pay to help out their workers, Walmart wants YOU, the taxpayer, to pay for its workers’ healthcare. Just one more reason Walmart workers, and the population at large, are standing up to Walmart. 

Walmart Wants Taxpayers to Pick Up Health Care Costs – Truth Dig

Walmart wants you to think its workers love the store and love their jobs. If that’s the case, why are there unprecedented protests against the mega retailer spanning the country? Why is the store facing a lawsuit from contracted warehouse workers? Since Walmart has given us no real evidence that its workers love the store, maybe we are just supposed to take Walmart’s word for it? 

Walmart Wants You To Know That Their Workers ‘Love Their Jobs’ – Huffington Post

This post was originally posted on Change to Win on Monday, December 3, 2012. Reprinted with Permission.

About the Author: J Lefkowitz: Change to Win is a Strategic Organizing Center which focuses on using its “strength in numbers to reclaim the American Dream.” It’s target is middle class and working class Americans to hold corporations  and other large entities in our modern society accountable. You can learn more about Change to Win here.

"Wal-Mart is Not a Feudal Manor"

Friday, November 30th, 2012

The manager at the Southside Walmart in Paducah, Ky., might have figured he’d quashed the protest at his store.

After all, he made James Vetato and three other OUR Walmart picketers leave from near the front door.

The quartet retreated, but to regroup at the entrance road to the busy shopping center the Walmart store anchors.

They redeployed under a big blue and white Walmart sign and held up hand-lettered placards reading, “ON STRIKE FOR THE FREEDOM TO SPEAK OUT,” “RESPECT ASSOCIATES DON’T SILENCE ASSOCIATES,” “ULP [unfair labor practice] STRIKE” and “WALMART STOP BULLYING ASSOCIATES WHO SPEAK OUT.”

Vetato, his wife, Trina, Rick Thompson and Amber Frazee were among many members of Organization United For Respect at Walmart — “OUR Walmart” for short – who struck and walked picket lines at stores in a reported 100 cities and towns in 46 states on Thanksgiving night and on Black Friday, the busiest shopping day of the year.

The group, which numbers thousands of current and past Walmart employees across the country, wanted to focus national attention on Walmart’s abuse of its workers, Vetato said.

The world’s richest retailer, Walmart is known for paying low wages to its employees, called “associates.” In addition, Walmart is fiercely anti-union.

Said Trina Vetato:

“People honked and waved to show their support, and they slowed down to read the signs. Some people stopped and told us they supported what we were doing.”

Vetato works at the Southside store. Her husband did, too, until he said management drove him to quit.

Frazee is employed at another Walmart in historic Paducah, where the Tennessee and Ohio rivers merge. She and Vetato expect retaliation from Walmart management.

“They said that there will be consequences,” Vetato said. “I’ll probably get fired or put on suspension or something. But it’s well worth it to me.”

Frazee agreed. “All we want is respect,” she said.

The Vetatos, Frazee and Thompson handed out leaflets explaining, “We are the life-blood of Walmart, yet we are not always treated with respect.”

Some of the literature outlined a “Declaration of Respect,” which nearly 100 OUR Walmart members, including James Vetato, delivered to Walmart’s top management at company headquarters in Bentonville, Ark.

The declaration calls on Wal-Mart management to

– Listen to associates.

– Respect associates and recognize their right to free association and free speech.

– Allow associates to challenge working conditions without fear of retribution.

– Pay a minimum of $13 an hour and make full-time jobs available for associates who want them.

– Create dependable and predictable work schedules.

– Provide affordable health care.

– Furnish each associate a policy manual that ensures “equal enforcement of policy and no discrimination” and affords every employee an “equal opportunity to succeed and advance in his or her career.”

The four Paducah protestors brought a cardboard box filled with OUR Walmart literature. They said management tried to keep it out of the store. Shoppers helped get it in.

“On Thanksgiving night, a community member took one of the fliers and taped it to the front of his shirt and walked through the store to get the word out to everybody,” Trina Vetato said.

Thompson, a Pittsburgh union activist, came to Paducah to join the picket line. When a member of management tried to stop him from handing out leaflets, another customer came to his aid.

Explained Thompson, a member of Vacaville, Calif.-based International Brotherhood of Electrical Workers Local 1245:

“The manager started bullying me for peacefully disseminating information, which I had the right to do. When the customer saw the manager walk away, she said ‘Give me a stack of those. I’ll take them in for you and pass them out.’”

Thompson said OUR Walmart is not trying to drive Walmart out of business. “We are not asking a single customer to turn away. We are fighting to win respect and improve working conditions for all associates.

“We want employees to have a chance to form their own association and have their own concerted actions without retaliation and unfair treatment. Walmart is not a feudal manor. The associates are not serfs. Walmart does not own every aspect of their lives.”

This post was originally posted on November 24, 2012 at Union Review. Reprinted with Permission.

About the Author: Berry Craig is a recording secretary for the Paducah-based Western Kentucky AFL-CIO Area Council and a professor of history at West Kentucky Community and Technical College, is a former daily newspaper and Associated Press columnist and currently a member of AFT Local 1360. His articles can also be featured on AFL-CIO NOW.

Wal-Mart Warehouse Workers Fight for the Future of Work

Tuesday, November 6th, 2012

Workers responsible for moving an estimated $1 trillion worth of goods a year through the global economy are paid low wages, often denied breaks and basic protective gear, and are employed primarily through temp agencies.

Outside the largest Walmart distribution center in the country, moving the products of the world’s largest private employer, a group of striking workers are asking for small changes they say will make an immeasurable difference to their working conditions. Warehouse workers in Elwood, Illinois, have been on strike for more than two weeks, calling for the subcontractors that employ them on behalf of Walmart to provide shin pads and dust masks – and to listen to their grievances around working conditions.

Early this week, workers forced the warehouse to close early after more than 200 people rallied around the suburban distribution center. A planned civil disobedience action took a surprising turn for many of the assembled protesters when riot police equipped with a sound cannon came to arrest the 17 clergy and warehouse workers blocking a road near the distribution center.

The majority of jobs created since the recession first hit mirror those the warehouse workers do: temporary, low-wage, no-benefit and high-risk. But the strike is also part of a larger trend of workers standing up to the Walmart behemoth – from the California warehouse workers on strike earlier this month to the three women that filed the latest sexual discrimination lawsuit against the company this week.

“The whole warehouse industry is built on temp poverty jobs. Every day, workers tell their sad story of getting ripped off in these warehouses, of sexual discrimination, of racial discrimination,” said Father Raymond Lescher, priest at Sacred Heart Church in Joliet, Illinois, and a member of the Warehouse Workers for Justice Board. “We’ve tried to work with politicians at the county, state and local level, but we haven’t gotten to first base. So, we said we’ve got to escalate this.”

Walmart Warehouse Workers.(Photo: Yana Kunichoff)

“There are rat feces, bat feces … it’s unbearable”

The windowless Elwood warehouse about two hours outside Chicago sits surrounded by chain link fence and empty fields. Warehouse Workers for Justice, the group helping to organize the workers, says Chicago transports half the nation’s rail freight, and seven interstate highways cross the Chicago region. It is the third-largest container port in the world, and almost $1 trillion worth of goods pass through the area annually.  It has the additional distinction of being home to one of the largest concentrations of warehouses on the planet

“If you didn’t make it yourself, it probably came through one of these warehouses,” says Leah Fried, an organizer with Warehouse Workers for Justice. Fried told Labor Notes that the Elwood location is the largest warehouse by far – 70 percent of imported products that Walmart sells make their way through its doors.

While the logistics industry working the warehouses is becoming increasingly lucrative, workers on the ground face a different reality.

Walmart Warehouse Workers.(Photo: Yana Kunichoff)

Chris Tucker, a 22-year-old resident of the neighboring suburb of Joliet, pays more than half of the income he earns as a warehouse worker on rent. With only $1300 dollars a month coming in from his job, the $850 a month to keep a roof over his head “isn’t going to cut it” for a living wage, said Tucker.

But that is only one of the reasons Tucker joined 29 other workers in walking off the job on September 15. He also says that the lack of dust masks isn’t good for his lungs, working without shin pads leaves him and others with constant bruises, and the lack of breaks during work makes the conditions dangerous.

Tucker was employed by RoadLink, the “largest private, independent North American Intermodal Logistics service provider,” according to its web site, during the three months he was at the Elmwood warehouse. Though the strikes are targeting Walmart, whose products they move, most people are employed by a series of subcontractors. Tucker has been working in warehouses for two years – along with RoadLink, he says he has worked under Velocity Logistics Inc., PLS Logistics Services, Staffing Logistics and Shamrock Logistics Operations.

Walmart Warehouse Workers.(Photo: Yana Kunichoff)

Warehouse Workers for Justice estimates that 70 percent of warehouses in the Chicago land area employ temporary labor. The group also says that Will County, where Elmwood is located, has the highest concentration of temp agencies in Illinois

The workers have filed 11 lawsuits in the past three-and-a-half years, according to Father Lescher. Most recently, a lawsuit filed against RoadLink on September 20 in the US District Court of Northern Illinois accused the company of wage theft and not paying overtime.

A class action lawsuit filed by California Walmart warehouse workers against Schneider Logistics sheds light on the role that contractors play, showing that they set payment rates and, in the case of Schneider, set work quotas for the warehouse.

RoadLink and Walmart did not respond to requests for comment from Truthout, but Walmart told the Huffington Post it took the workers allegations “very seriously” but the complaints where “unfounded.

Walmart Warehouse Workers.(Photo: Yana Kunichoff)

On the Picket Line 

Joining the Walmart strikers on the picket line were workers from Sensata Technologies Inc., a company owned by Bain Capital and now in the final stages of moving its production to China. Workers have set up a tent camp outside the factory to protest the closings and the fact that many of them may not get their full severance packages.

Bonnie Borman worked with Sensata for more than 20 years in Freeport, Illinois, as a production technician. Now she’s not sure what she’ll do next. “All that’s left here is just minimum-wage, low-paying jobs that you can’t support a family on,” said Borman, who has already begun training her Chinese replacement. At her current job she makes $15 an hour, a wage she is worried she won’t be able to find wherever she goes to work next. “I’m kind of in that limbo place where I keep thinking: What am I going to do?”

Walmart Warehouse Workers.(Photo: Yana Kunichoff)

The world’s biggest private employer isn’t very appealing to Borman, she said.

It took Jerome Synowicz, a Walmart worker from Milwaukee, Wisconsin, eight years to move his salary from $7 an hour to his current $12. “They get you a check and it’s nothing. It’s very hard to make it go around,” he said.

Copyright, Truth-Out. May not be reprinted without permission. Originally posted on Truth-Out on October 3, 2012. 

About the Authors: Jesse Menendez is the host of Vocalo on Chicago Public Radio’s WBEZ. He is also host of The Music Vox on Vocalo radio, which airs Monday-Friday from 6 PM-8 PM Central, and Live From Studio 10, which airs every Wednesday at 8 PM Central. Yana Kunichoff is an assistant editor at Truth-Out.

Walmart Drives Down American Wages by Outsourcing Jobs

Thursday, June 7th, 2012

waldron_travis_bioWalmart’s outsourcing of jobs is driving down wages at American factories, according to a report from the National Employment Law Project. Instead of employing its own factory employees, Walmart subcontracts many of the jobs to outside companies that have histories of low wages and labor violations, the report said. “These outsourced workers laboring on Walmart’s behalf toil at the bottom of a complex hierarchy of intermediaries and in alternative employment schemes that leave them vulnerable to significant worker rights abuses and unsure where to seek redress,” said the report, which also noted that workers at multiple Walmart-contracted facilities have sued their employers for violating minimum wage laws and cheating them out of pay.

This post originally appeared in ThinkProgress on June 6, 2012. Reprinted with permission.

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

Worst City Policies of 2010

Thursday, December 23rd, 2010

amytraub4Corruption Takes a Toll in Bell
Progressives know government can be a powerful force for good in people’s lives. So it’s particularly devastating when the people charged with upholding the public trust — local officials with the potential to improve the lives of their constituents — instead betray the public. The year’s most notorious case of municipal corruption occurred in the town of Bell, California, a working-class community outside of Los Angeles. The city’s highest ranking officials secretly paid themselves exorbitant salaries and benefits, misappropriated city funds, and gave themselves illicit low-interest loans, according to criminal allegations and reports by the Los Angeles Times. To add insult to injury, the Bell case provided the Right with a pretext to attack the wages and benefits of rank-and-file public workers, suggesting that teachers and sanitation workers (who wouldn’t see Bell-style compensation if they worked for a century) were similarly compromised. For destroying public trust and providing yet another revolting example of people at the top abusing their power, the corrupt practices of Bell officials rings out as one of the worst policies of 2010.

Blood from a Stone in New York
It might be enough make Ebenezer Scrooge squirm. In New York City the homeless population has grown to 36,600, up from 33,600 five years ago. At the same time the, city has cut services for the homeless and plans to further reduce funding for the Department of Homeless Services by $19 million over the next 18 months. But when the city announced its plan to charge working homeless families rent for sleeping in city shelters the public outcry was instantaneous. City officials insisted the program was an effort to instill greater responsibility in homeless families. But as one homeless advocate pointed out, “They are taking money… that could otherwise be used to help themselves get out of the shelter system. We’re dealing with the poorest people, the people who are the most in need, and we’re asking them to pay for a shelter of last resort.” Under intense pressure, the city has since changed its stance. Working homeless families are now encouraged to put part of their income into savings. But for attempting to place an even more onerous burden on the poorest of the working poor, New York City’s plan to charge homeless families rent finds a home among the worst policies of 2010.

Who Turned Out the Lights in Colorado Springs?
Smacked by the recession, many cities faced revenue shortfalls and tough budget choices in 2010. But few towns resorted the type of draconian service cutbacks seen in Colorado Springs, where residents voted against a property tax increase and the town instead opted to turn off streetlights (although residents who can afford to could choose to reactive their lights); shrink the police department any rely on private taxicabs to help with law enforcement; and leave neighborhood parks to wither (people with time and resources can volunteer to maintain their own local green spaces). “We did have a transit system,” the Vice-Mayor told NPR. “That’s gone almost completely now.” Many commentators denounced Colorado Springs as an object lesson in the consequences of anti-tax extremism, but the city’s small-government stance hides an inconvenient truth: a major source of Colorado Springs’ economic strength is its reliance on the military and other state and federal public employment to anchor the local labor market. For gutting public services in accordance with a narrow, me-first ideology, Colorado Springs’ cuts join our list of the worst policies of 2010.

Anti-Immigrant Fever in Fremont
In January, Kris Kobach will become Kansas’ new Secretary of State, but his destructive influence already extends far beyond the borders of the Sunflower State. For the last several years, Kobach has made a cottage industry of advancing harsh city and state anti-immigrant statutes characterized by high municipal costs, significant damage to the local economy, and tremendous potential for discrimination against anyone who “looks” like they might be an unauthorized immigrant. This year, a Kobach-written ordinance was enacted in the town of Fremont, Nebraska, which banned hiring or renting to unauthorized immigrants. Although implementation has been blocked by a lawsuit, the ordinance’s divisive impact is already being felt. Many of the city’s long-time officials are resigning or retiring, noting that the immigration fight “wears you down.” Taxpayers also feel the bite: the town raised property taxes in anticipation of an expensive legal battle. For exemplifying what one local attorney called “the power of fear” as it faced an increase in (predominantly legal) Latino residents, Fremont’s anti-immigrant ordinance is one of the worst of 2010.

Wal-Mart’s Broken Promises in Chicago
It’s no secret that mega-retailer Wal-Mart desperately wants to get a foothold in urban markets. Similarly well-known is Wal-Mart’s dismal record on workers’ rights and its devastating impact on small businesses. New Wal-Mart stores have been shown to destroy nearly as many jobs as they create, push other stores out of business, and to drive down wages for workers throughout the entire community. In Chicago, where the retail chain has ambitions to open “several dozen” stores, Wal-Mart’s strategy included buying off community leaders with charitable donations and splitting union solidarity by pitting construction unions versus retail unions. But most shamefully, Wal-Mart reneged on an agreement it had made with the unions and city leaders that helped secure City Council approval of its second Chicago store. City Aldermen and labor leaders thought they had an unwritten agreement with Wal-Mart to pay workers 50 cents above minimum wage and to give workers a minimum 40 cent raise after the first year. They thought wrong. The same day that the store was approved, Wal-Mart announced that there was, in fact, no wage deal. To Wal-Mart, for breaking a promise, and to the political leaders who failed to get a binding deal, the approval of Wal-Mart in Chicago is one of this year’s worst city policies.

John Petro contributed to this article.

This article was originally posted on DMI Blog,

About the Author: Amy Traub is the Director of Research at the Drum Major Institute. A native of the Cleveland area, Amy is a Phi Beta Kappa graduate of the University of Chicago. Before coming to the Drum Major Institute, Amy headed the research department of a major New York City labor union, where her efforts contributed to the resolution of strikes and successful union organizing campaigns by hundreds of working New Yorkers.

New York's Lousy Jobs (And How We Can Make Them Better)

Friday, November 26th, 2010

amytraub4Should we tear down the city’s middle class? Or work to turn lousy jobs into good ones? That’s the policy choice facing New York’s city and state leaders. So far, their decisions aren’t encouraging: for years New York has failed to use its economic development programs to promote the creation of good, family-supporting jobs. Now it is welcoming Walmart’s industry-decimating low-wages with open arms. The state has so far failed to take a stand against $1 billion a year in wages stolen from New York’s lowest-income workers, but instead is spoiling for a fight of a very different sort: vowing to scale back the pay and retirement security of middle-class teachers, transportation workers, and other public employees.

The result? A disappearing middle class amidst the proliferation of lousy, low-wage jobs. It doesn’t have to be this way.

For the time being, New York City is getting more lousy jobs. We are gaining retail and restaurant jobs — positions that often lack benefits and fail to pay a living wage – while losing middle-class jobs in the public sector and manufacturing. To make matters worse, education and health care – among the few bright spots in New York City’s recovery over the past year (as well as the state’s job growth over the past decade) — are the very areas Governor-elect Cuomo has vowed to cut.

As a result, the disappearance of New York’s middle class is likely to accelerate. We may continue to be home to more millionaires but we’re also apt to see more people with jobs showing up at food pantries because they’re not earning enough to feed their families.

None of this is inevitable. The economic trends impacting New York today were heavily shaped by past public policy decisions at the federal, state, and local level. Meanwhile the choices made by our political leaders today could redirect (or intensify) the way the city’s economy develops. What will New York stand for?

If we’re stung by the loss of good jobs, one reaction is to turn our resentment on the folks who still have solid middle-class careers: deplore teachers who still have protection from arbitrary layoffs and insist that the biggest problem New York faces is that parks department workers still have pensions. We could assert the worker protections they enjoy are outdated, trash the compensation these public workers earn, and turn their jobs into lousy jobs too.

While we’re at it, we can welcome Walmart into the city and insist that it’s perfectly acceptable for people to go to work every day and still need food stamps to feed their children. Maybe the teachers we’re laying off can get jobs there.

Or we could try something different.

We could, for example, to look at the hundreds of millions of dollars in economic development subsidies the city spends every year and insist that these taxpayer dollars be used to promote jobs that allow working people to support their families. New York could emulate Pittsburgh’s decision to stop using subsidies to foster poverty wages. We could pass the Fair Wages for New Yorkers Act to insist that the mega-developments underwritten by our public dollars pay decent wages. These measures won’t put an immediate halt to the decline of job quality in New York, but at least they’ll put the city’s economic muscle on the side of the angels.

We could also work to ensure that the job standards we have now are enforced. New York’s minimum wage is an inadequate $7.25 an hour, yet a fifth of the city’s low-wage workforce (317,200 working people) are cheated out of even that meager pay or fall victim to other workplace violations in a typical week. The state’s Wage Theft Prevention Act, now languishing in Albany because the Assembly and Senate passed slightly different versions, would be a step towards enforcing the laws now on the books to protect New York’s lowest paid workers.

It’s not too late for New York to take a stand for good jobs, strengthening and expanding the city’s middle class rather than tearing it down. But the longer New York waits to reverse course, the more difficult it will be.

This article was originally posted on DMI Blog.

About the Author: Amy Traub is the Director of Research at the Drum Major Institute. A native of the Cleveland area, Amy is a Phi Beta Kappa graduate of the University of Chicago. Before coming to the Drum Major Institute, Amy headed the research department of a major New York City labor union, where her efforts contributed to the resolution of strikes and successful union organizing campaigns by hundreds of working New Yorkers.

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