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

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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.


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This Bill Would Force Large Corporations To Pay a Fine if They Don’t Pay Workers a Living Wage

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FullSizeRender (1)A group of Chicago-area progressive groups and unions are backing a bill that would punish large companies who don’t pay their workers a living wage.

The Responsible Business Act would charge corporations who employ more than 750 Cook County workers at less than $15 per hour fees for paying what advocates call poverty-level wages. Since it was introduced in October last year, the act has gained the support of unions and grassroots organizations fighting for economic justice.

Two actions in support of the proposed Responsible Business Act (RBA) took place in Cook County on Monday. In Chicago’s Uptown neighborhood, Organizing Neighborhoods for Equality: Northside, or ONE Northside, led a teach-in at their offices and canvassed outside of corporate stores. Supporters of the RBA including IIRON and the Reclaim Campaign held an action at a Walmart store in suburban Bedford Park, just outside the city limits.

The RBA is a county-level act and is sponsored by Commissioner Robert Steele of the Cook County Board of Commissioners. It currently has three co-sponsors: Joan Patricia Murphy, Luis Arroyo, Jr. and Jerry Butler; organizers say they also have two commitments to vote “yes” from Jesus “Chuy” Garcia and Larry Suffredin. Three more commissioners need to support the act in order for it to pass through the 17-member board. Monday’s actions called on 11th District Commissioner John Daley and 10th District Commissioner Bridget Gainer to back the bill.

At the canvassing event organized by ONE Northside, supporters of the RBA called for Gainer to co-sponsor the proposal. They engaged pedestrians outside of Target, Starbucks and McDonald’s—all corporations that would potentially be affected by the RBA.

“The CEOs of these big corporations continue to make massive profits while the workers, who are responsible for the functioning of the corporations, are forced to rely on public services to survive off their poverty wages,” said Eugene Lim, a member of the group’s Workers’ Rights Team.

Commissioner Gainer did not respond to a request for comment.

The Responsible Business Act would give corporations with over 750 employees a choice: either raise their employees’ wages to a living wage—determined by Cook County Chief Financial Officer Ivan Samstein at $14.57 per hour without benefits and $11.66 per hour with benefits—or pay a $750 fee for each dollar paid below the hourly living wage per employee.

For example, a corporation where 100 workers earn $13.57 per hour (one dollar below the living wage of $14.57 per hour) would have the choice of raising their hourly wage by $1 for each worker, or paying a fee of $75,000 ($1 times 100 workers, times the $750 fine). This fee is designed to supplement the housing and childcare assistance, Medicaid costs and other services out of reach for workers earning poverty wages. The fees would be earmarked specifically for public assistance programs and distributed by the county.

Seventy-five percent of the revenue would be placed into a newly established Family Sustainability Fund, 20 percent would go to pre-existing health care spending and the remainder would be spent on administrative costs. A nine-person commission would advise the Cook County Board of Commissioners on allocation of the collected funds.

Monday morning’s South Side action took place at the Walmart store at 7050 S. Cicero Avenue. About 50 people, including low-wage workers, students and members of IIRON, Reclaim Campaign, the Bridgeport Alliance and National Nurses United were present. At 11 A.M., the protesters entered Walmart, carrying signs and chanting “Hey you, millionaires, pay your fair share!”

Gianna Chacon is an undergraduate at Roosevelt University. She says her $10 per hour retail job at Marshalls isn’t enough to cover her living expenses. “These companies can afford to pay us enough to live on, but instead they choose to squeeze their workers and make a few million more,” she told the crowd.

The group brought with them a 3′ x 5′ invoice for what they say is the $33 million owed by Walmart to workers and taxpayers. The number is an estimate of the amount of taxpayer money that goes to supporting Walmart employees to provide essential services that they are unable to afford. According to a study by the Center for Urban Economic Development at the University of Illinois at Chicago (UIC), the Responsible Business Act would affect 67 employers in Cook County and raise the wages of over 16,000 workers. The average increase would be $7.11 per hour, per worker.

Yamara Ayala, a mother of two and a home care aide for her father, said at Monday’s action that she has high hopes for the Responsible Business Act. “I’m hoping it does go forward because it will help so many families. … None of us are getting our fair share, and that’s what we’re fighting for.”

Monday’s South Side action was one of the first to target 11th District Commissioner John Daley, who has yet to pledge support for the Responsible Business Act. Tom Gaulke, a leader with IIRON and the Bridgeport Alliance, addressed Daley during Monday’s action: “You have the power to help us make large corporations like Walmart pay their fair share to workers and pay their fair share to our communities.”

Commissioner Daley did not respond to a request for comment.

If implemented, the act would incrementally raise the minimum wage that large employers are required to pay employees to avoid fees. The rate would increase by $1.35 per year, from the current minimum of $8.25 in Cook County, to a high of $15.00 over five years. The UIC study found that the Act could raise up to $500 million during the four year phase-in, and $200 million after it is fully implemented.

Emiliano Vera, a Northwestern University undergraduate and a low-wage worker himself, said at Monday’s action that “We need to speak up to challenge that blatant lie [that low wage work is justified], and tell the story that the real culprits are the corporations that refuse to pay a living wage.”

This blog originally appeared in inthesetimes.com on February 3, 2016. Reprinted with permission.

Justyna Bicz is a freelance journalist based in Chicago, and an editorial intern with In These Times.


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Here’s Some History to Help Understand the Racial Wealth Gap

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A company of 4th Regiment U.S. Colored Troops, (USCT) Infantry/Wikimedia

William Spriggs Next month is Black History Month. We will hear stories about black Americans and their successes in this country against the barriers (slavery, Jim Crow, poll tax just to name a few) thrown in their paths. Yet for every success story, there is still the nagging fact that the median net wealth of white households is 12.2 times greater than that of black households.

Because of well-documented gaps in unemployment rates, earnings, poverty and wealth, black working people are sometimes falsely seen as “bystanders” to America’s economy.  Unbelievably, there is a tendency to observe the gaps in economic success and blame African Americans for being disengaged and not trying to respond to clear economic realities; a lack of investment in education, skills, training and personal saving. This is patently absurd.

African Americans are fully aware of the barriers they face to success, and have been steadfast to struggle to remove them.  Indeed, Dr. Martin Luther King Jr. was assassinated during a campaign by black sanitation workers in Memphis, Tenn., to exercise their right to organize, strike and demand fair wages; a key theme of American worker advancement during the first 80 years of the last century and one repeated this past Dr. King Holiday by airport workers demanding a living wage.

The difference in wealth does not grow smaller when comparing white and black households headed by college graduates, or when controlling for differences in income.  Because the easy answers like education and income differences don’t explain the wealth gap—which measures accumulated savings over multiple generations—the fall back is often to blame the savings’ behavior of blacks.  And, here, old stereotypes of African Americans being profligate can easily substitute for documentation. But taking a closer look at history tells us the real story.

Those early years after emancipation are key in addressing the deep history of African Americans as their own agents.  During the Civil War, African American leaders, most famously, Frederick Douglass, campaigned hard to have black soldiers officially sworn into the fight to end slavery.  With issuing the Emancipation Proclamation, Lincoln also finally signed on that in 1863 not only would slaves in the rebellious states be free, but African American men would join the United States Army and Navy in quelling the Southern revolt.  Close to 180,000 black men signed-up as official members of America’s Armed Forces to defend the Constitution of the United States against all enemies foreign and domestic.  They became the largest paid workforce of African American men to that point in America’s history.

The issue quickly arose as to where could they deposit their paychecks?  A few fledgling efforts were made to start banks.  And, that effort culminated with the establishment of the Freedmen’s Savings and Trust by Congressional act in March 1865; the Freedmen’s Bureau bank.  Recently the U.S. Department of Treasury and Secretary Jack Lew dedicated an annex to honor the Freedmen’s Bureau Bank.

By 1870, the bank operated 37 branches throughout the South, with African Americans trained as branch managers.  In all, almost 70,000 African Americans made deposits in the bank, reaching savings of about $57 million.  Those facts stand to clearly demonstrate the efforts of a people, subject to slavery, freed with nothing from their previous labors to start anew having built wealth for others for free.

But, fate would intervene.  The accumulation of those savings came during a period when the federal government still stood in the way of restoring the South’s old hegemony of white southern planters.  And, it came when the nation’s banks were still conservative following the uncertainties of the Civil War.  Southern banking laid prostrate, devastated by the collapse of the Confederacy and the meaningless holdings of Confederate dollars, and the long mystery of the disappearance of the gold reserves that backed that currency on its desperate journey south from Richmond, Virginia in April 1865 as Robert E. Lee surrendered the fighting cause at Appomattox Court House under the vigilant eyes of 2,000 black men in seven units of the United States Colored Troops.

By the start of the 1870’s, the expansion west made possible by the Homestead Act and transcontinental railroad—both enacted during the Civil War—restored the nation’s prosperity and financial zeal.  The result was over speculation in railroading.  In Europe, financial pressures mounted from the Franco-Prussian War.  Germany refused to continue issuing silver coins.  This resulted in plummeting silver prices, and the eventual move by the United States to go from backing its currency in silver and gold, to use only the gold standard.  This led to the collapse of investments in silver mines in the western United States.  The result was a global financial collapse that swept Europe and the United States in 1873.  With it came the collapse of the U.S. banking system.

Sound familiar?  And, that collapse decimated the Freedmen’s Savings and Trust as well.  At a time of general financial collapse and no Federal Deposit Insurance Corporation—a creation learned from the Great Depression—many depositors lost their savings.  The millions in savings of the newly free went away, too.  Not too different than the 240,000 homes that disappeared from the African American community after the financial collapse of 2007.

In 1876, a compromise to resolve the Presidential election resulted in the removal of federal protection of African Americans in the South.  The end of reconstruction meant the restoration of southern white hegemony and the evisceration of voting rights for African Americans, the protection of the access to many occupations and the limiting of their equal access to education.  This too sounds familiar.

To accurately measure history, it takes measuring all the hills and valleys right.  Dedicating a building to the Freedmen’s Savings and Trust allows us to properly assess the toil and efforts of African Americans.  It shows the hard work and industrious nature of a determined people.  It reminds us of the mountains of betrayal as well.

This blog originally appeared in aflcio.org on January 22, 2016.  Reprinted with permission.

William E. Spriggs is the Chief Economist for AFL-CIO. His is also a Professor at Howard University. Follow Spriggs on Twitter: @WSpriggs.


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A Big Win for Senate Cafeteria Workers

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poole-60x60A sustained campaign on behalf of Senate cafeteria workers – including a 63-year-old employee who was homeless because he could not earn enough money to afford an apartment – has succeeded this week in getting these workers a desperately needed boost in pay and benefits.

Thanks to the organizing efforts of Good Jobs Nation and other allies, Senate officials signed a new contract with the workers that raises their minimum pay to $13.30 an hour and brings the average pay to workers close to the $15 an hour that the workers were demanding.

News of the agreement was published Monday by The Washington Post.

The Senate cafeteria workers were held up as a prime example of the kinds of poverty-wage jobs held by people under federal contracts. The company with the contract to manage the Senate cafeteria, Restaurant Associates, is part of a multinational corporation that boasted inits 2014 annual report that it had done well enough to offer to increase its dividend payments to shareholders by 10.5 percent as well as return 1.5 billion pounds – more than $2 billion – to shareholders via share buybacks and other means.

There was plenty of room to give a raise to stockholders, but not to the Senate cafeteria workers – at least not until the Senate cafeteria workers put their own jobs on the line to call attention to their plight. Their bold decision to hold one-day strikes, lead demonstrations and tell their stories led to several Democratic senators – including Minority Leader Harry Reid, Sherrod Brown, Elizabeth Warren and Bernie Sanders – and their staffs announcing a boycott of the cafeteria every Wednesday until the demands of the cafeteria workers were met.

The pressure on behalf of the workers appears to have made an impression on Sen. Roy Blunt (R-Mo.), the chairman of the Senate Rules and Administration Committee, who when signing the new contract said that he was “glad their concerns were heard and taken into consideration in the new contract.”

One concern, though, remains unaddressed: the workers’ demand for the ability to form a union. Restaurant Associates remains subject to complaints filed with the National Labor Relations Board that they have improperly interfered with the ability of the cafeteria workers to organize. Paco Fabian, a spokesman for Good Jobs Nation, was quoted in The Washington Post as saying that the cafeteria workers “won’t stop fighting until they get a voice on the job.” And neither should we.

This blog originally appeared at OurFuture.org on December 15, 2015. Reprinted with permission.

About the Author: Isaiah J. Poole worked at Campaign for America’s Future. He attended Pennsylvania State University and lives in Washington, DC.


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Ahead of Pope Francis Visit, Bernie Sanders Joins Low-Wage Worker Strike in Washington, D.C.

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in these timesSen. Bernie Sanders (I-VT) threw down the gauntlet for Congress and President Obama Tuesday morning, joining hundreds of low-wage contract workers from federal buildings who are striking in advance of Pope Francis’ visit to Washington, D.C.

Speaking to the assembled workers at a nearby Catholic Church, Sanders urged U.S. lawmakers to take seriously the pontiff’s message on “social and economic justice.” He also challenged President Obama to sign an executive order raising the wage for federal contractors to at least $15 an hour and allowing them to unionize.

“There is no justice in America when the largest low-wage employer is not McDonalds, it is not Burger King, it is not Wal-Mart, it is the United States government,” he told the cheering crowd. “The United States government has got to become a model employer.”

Sanders told The Hill that as “one of the great moral forces on earth today,” any statement by the Pope on the issue of wealth inequality during his trip to D.C. would be influential.

The rallied workers later marched to the steps of the Capitol, where they held a prayer service asking for lawmakers to listen to the Pope’s words. Some workers also organized a brief sit-in at the Senate cafes.

The strike, organized by Good Jobs Nation, had been planned as early as last week to coincide with the Pope’s visit, whose various statements on inequality, neoliberalism and economic justice have pegged him as an ally of the labor movement. Striking workers had written a letter to Pope Francis asking him to meet with them in addition to those in power.

“We may be invisible to the wealthy and powerful we serve everyday—but we know we are worthy of a more abundant life as children of God,” the letter reads.

Although President Obama granted federal contractors a wage increase to $10.10 in February 2014, the workers charge this is not enough in a city that, according to one study, requires a salary of $108,092 to live “comfortably” in. Reports abound of cleaners and cooks resorting to food stamps, working second jobs and even going homeless as a result. Critics charge that the federal government bears large responsibility for this by awarding hundreds of billions of dollars in contracts, grants, loans and more to companies that pay low wages and offer no benefits.

According to a report from Demos, nearly 2 million federal contractors currently make less than $12 an hour, far less than MIT’s calculated living wage for D.C. of $20.27. At the same time, according financial data analyzed by OpenSecrets.org, the median net worth of U.S. lawmakers climbed to over $1 million.

This Blog originally appeared on In These Times on September 22, 2015. Reprinted here with permission.

About the Author: Branko Marcetic is a Fall 2015 In These Times editorial intern.


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Uber Drivers Could Gain Thousands in Pay, Benefits as Full-time Employees

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NerdWallet logoUber drivers in six major U.S. cities would receive paid holidays and health care benefits worth an average of $5,500 a year, plus thousands more in mileage reimbursement, if the company provided them with the same benefits as its full-time employees, according to a new NerdWallet study.

The California Labor Commissioner’s Office ruled in June that Barbara Berwick, who worked as an Uber driver for just under two months, was an employee of the company rather than a contractor. The ruling ordered Uber to reimburse Berwick $3,878 for mileage and tolls plus $274 in interest.

Similarly, the Florida Department of Economic Opportunity decided in May that former Uber driver Darrin McGillis had been an employee, entitling him to unemployment benefits, according to a report in the Miami Herald.

While both decisions apply to the individuals involved only and Uber is appealing, if upheld, drivers across the nation could be motivated to seek status as full-time Uber employees.

The decisions related specifically to expenses and unemployment insurance. Drivers stand to gain even more if Uber recognizes them as full-time employees. Based on what Uber offers employees, drivers might expect:

  • Fully covered health insurance, including dental and vision benefits
  • Nine paid holidays
  • Business-driving reimbursement

Although the current rulings only apply to a few individuals, it may set a precedent for all drivers in the future. This analysis, while an estimate, is still an indicator of how much money is at stake.

Jeffrey Chu is an analyst covering insurance for NerdWallet. NerdWallet staff writer Aubrey Cohen contributed to this articleNerdWallet is a consumer-focused website dedicated to saving people money every day by helping them make better, more informed financial decisions.

 


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Bar Owner Eliminates Tips So He Can Pay Cooks And Dishwashers A Living Wage

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Bryce CovertPortland, Oregon’s new bar Loyal Legion doesn’t just offer customers 99 different beer choices. It also requires them to pay zero in tips.

When owner Kurt Huffman opened the bar, he wanted to figure out to deal with a problem plaguing all of his establishments: the nearly impossible search to hire talented staff in the back of the house cooking and prepping food and washing dishes. “I can’t find line cooks anymore,” he said. The search for a single cook takes his team three or four weeks, an eternity in the business. “I’ve got to figure out how to get the kitchen more money so we can keep talent.”

He noted that the cost of living in the city is so high that almost all of his dishwashers and line cooks have to work two jobs to get by. “The system is broken in terms of how people are paid,” he said.

So to create a new pool of money to be able to increase the wages in the back to be comparable with what the people serving customers in the front are making, he eliminated tipping and instead has raised prices by 20 percent — so a beer has gone from $5 to $6. That’s allowed him to increase the minimum pay for the back of the house to $15 an hour, which increases to $18 after three months. The front of the house will also get an $18 minimum wage.

Huffman himself used to work in the back of restaurants, and he noted that the new system allows him to address an “ethical dilemma” he faced when paying those positions less than servers and bartenders who also rake in tips. “I used to work with dishwashers and cooks, and everybody is busting our ass,” he explained.

A growing wave of American restaurants has been getting rid of tipping in favor of a variety of other models. While it started with high-end places on the coasts, it’s now extended to bars like Huffman’s, diners, coffee shops, and barbecue joints. One piece of the reasoning, which Huffman also noted, is that tipping is no longer an expression of gratitude for service but simply a given. “In the olden days, tips were actually an index of quality of service,” he said. “They aren’t anymore. People tip always the same.” In fact, the quality of service only accounts for a percentage point or so change in the size of tips; instead, they tend to fluctuate more on gender, race, and looks.

The no-tip model could also serve as an experiment for how his sit-down restaurants might address a higher minimum wage. Huffman expects a $15 minimum wage requirement will soon be enacted in Portland given that it’s already been passed in San Francisco and Los Angeles, the cityraised the wage for its own workforce to that level earlier this year, and voters will weigh in on an overall hike to that level come November. “I think everybody in the restaurant industry, everybody who’s paying attention, is thoughtful and mindful of how we’re going to address that change,” he said.

His company ChefsTable Group has 16 restaurants, and he estimated that for six of them, that sort of cost increase will be nearly impossible to contend with without other changes. One change he’s considering is adding an automatic gratuity to the bill — perhaps 5 percent — that would go to helping cover that cost, and customers would be able to add what they wanted on top of that.Some restaurants in other cities are instituting higher wages before they even go into effect by eliminating tips and raising prices.

This blog originally appeared in ThinkProgress.org on August 5, 2015. Reprinted with permission.

Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.


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Democrats push to limit abusive work scheduling practices like split shifts

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Laura ClawsonLow hourly wages aren’t the only thing that keep workers in the fast food and retail industries struggling. Scheduling matters, too. These days it’s common for workers to not know their schedules more than a week ahead; to be on call, ready to go to work with no notice, but not guaranteed any pay; for their hours (and therefore their paychecks) to vary enormously month to month; or to be forced to work split shifts, with a few hours of work in the morning and a few hours at the end of the day. All of this doesn’t just affect paychecks, it makes it difficult for workers to raise their incomes by getting a second job, and it costs them as they try to line up child care for unpredictable schedules. Democrats, led by Sens. Elizabeth Warren, Patty Murray, and Chris Murphy and Reps. Rosa DeLauro and Bobby Scott, have a bill to fix that, or at least start to fix it: the Schedules That Work Act.

The bill:

Protects Workers who Ask for Schedule Changes
All employees of companies with more than 15 workers will have the right to request changes in their schedules without fear of retaliation. Employers would be required to consider and respond to all schedule requests, and, when a worker’s request is made because of a health condition, child or elder care, a second job, continued education, or job training, the employer would be required to grant the request unless a legitimate business reason precludes it.Incentivizes Predictable and Stable Schedules in Occupations with Known Scheduling Abuses
Employees in food service, cleaning, and retail occupations—as well as additional occupations with documented scheduling abuses designated by the Secretary of Labor—will now get their work schedules two weeks in advance and will receive additional pay when they are put “on-call” without any guarantee that work will be available; report to work only to be sent home early; are scheduled for a “split shift;” or receive changes to their schedule with less than 24 hours notice.

There are two things to note about this: First, it’s the kind of bill Democrats wouldn’t be proposing without worker activism drawing attention to the problem. Second, it’s the kind of bill Republicans will never pass, so for workers to have these protections, we need to elect Democrats.

This blog was originally posted on Daily Kos on July 16, 2015. Reprinted with permission.

About the Author: The author’s name is Laura Clawson. Laura has been a Daily Kos contributing editor since December 2006  and Labor editor since 2011.


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New York manicurists to get emergency protections against wage theft, hazardous chemicals

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Laura ClawsonTalk about journalism with an immediate impact. Last week’s New York Times investigation of labor law violations and unhealthy working conditions for manicurists in the city’s nail salons has spurred Gov. Andrew Cuomo to take sweeping emergency action:

Nail salons that do not comply with orders to pay workers back wages, or are unlicensed, will be shut down. […]Salons will be required to publicly post signs that inform workers of their rights, including the fact that it is illegal to work without wages or to pay money for a job — a common practice in the nail salon industry, according to workers and owners. The signs will be in half a dozen languages, including those most spoken in the industry — Korean, Chinese and Spanish. […]

Salons will now be required to be bonded — which is intended to ensure, through a contract with a bonding agency, that workers can eventually be paid if salon owners are found to have underpaid the workers. The move is an attempt to counteract the phenomenon of salon owners’ hiding assets when they are found guilty of wage theft.

Additionally, health and safety measures will be put in place, like requiring manicurists to wear gloves and masks and salons to be ventilated, while the Health Department will investigate the most effective health protections to incorporate into what will eventually be permanent policies replacing the short-term emergency measures.

Some of the abuses Sarah Maslin Nir’s investigation into New York City nail salons exposed may be especially prevalent in New York, where there are more nail salons per capita than in any other American city and where manicures cost below the national average. That might, for instance, make wage theft more common and more aggressive than in other locations—but that doesn’t mean it’s not happening in California and Illinois and Massachusetts, too, and states should take this as a spur to inspect their own nail salons. And the health hazards manicurists face similarly deserve a good hard look by state regulators. Customers might end up paying a couple dollars more for a mani-pedi, but we’re talking about workers’ lives here, and their ability to collect the pay they’ve legally earned.

This blog was originally posted on Daily Kos on May 9, 2015. Reprinted with permission.

About the author: The author’s name is Laura Clawson. Laura Clawson has been a Daily Kos contributing editor since December 2006. Labor editor since 2011.


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AFL-CIO To Put ‘Laser Focus’ On Raising Wages

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David MobergThe labor movement has a new driving message for its legislative, educational and political work that should resonate with most American workers, especially those who have the least: Your pay is too damn low!

AFL-CIO president Richard Trumka put it less colloquially this week than the New York gubernatorial candidate who once ran on a single message: “Rent is too damn high.” Organized labor will put “a laser focus on raising wages,” Trumka told reporters in Houston at the start of the winter quarterly meeting of the federation’s executive council.

Whatever the words, the case for action is strong. Wages have stagnated for all but the rich for more than a decade and fallen for low-wage workers, according to theEconomic Policy Institute, a leading research institution on labor markets. Adjusting for inflation over the past four years, hourly wages for workers in the bottom 30 percent have fallen an average of 68 cents an hour.

Those trends, mirrored by the top 1 percent capturing 95 percent of all the new income growth following the end of the Great Recession, explain why inequality is growing, according to University of California, Berkeley economist Emmanuel Saez.

However, as Trumka notes, the general public, as well as leaders from “the Pope to the president,” have begun to express outrage over inequality. A minimum-wage boost has been increasingly on the U.S. agenda, with a $10.10 federal minimum proposed by Congressional Democrats and supported by Obama. Although the AFL-CIO is promoting the $10.10 minimum, Trumka says he favors a “living wage” standard set around $17 an hour, indexed to inflation.

“Wages are about what connects us all,” he told reporters, suggesting that labor’s campaign for a raise for all workers could bring old and new allies together in a powerful movement for economic fairness.

It’s no surprise that unions want workers to earn more, and this is not the AFL-CIO’s first call for higher wages across the board. The labor federation adopted much the same focus after John Sweeney and Trumka first won the top posts in the AFL-CIO in 1995. (Sweeney authored a book titled America Needs a Raise: Fighting for Economic Security and Social Justice.) But progress has been slow. Despite some victories on minimum wages, living wages (which typically mean a higher minimum for certain workers, such as public contactors), and other measures, workers need a raise now even more than two decades ago.

The AFL-CIO campaign to raise wages centers on supporting legislation that would raise the federal and state minimum wages (including the minimum for tipped workers, frozen at $2.15 since 1991). But it goes further than that, to backing a broad swath of local, state and national proposals that would help workers prosper, including measures to establish living wages, strengthen enforcement against employer wage theft, guarantee paid sick days and bolster basic federal social safety-net programs, such as Social Security, Medicare and the Affordable Care Act. (Unions in many industries are seeking to preserve their non-profit healthcare plans jointly administered with management, which are threatened to be crippled by the ACA’s denial of subsidies and incentivization of limiting workers’ hours.)

Trumka did not outline any new tactics beyond labor’s standard ones: political education and mobilization to try to make wage and inequality issues central to the election this fall.

But he thinks the conditions are ripe to build public support for a wage boost. “Workers are sick and tired of wages being flat, not growing, and they’re working harder and harder and harder and getting by on less and less,” Trumka said. In this climate, if progressive politicians focus on raising incomes through cash or benefits, they will beat right-wingers, he says. Even the ACA, which has taken the brunt of Republican attacks, has millions of beneficiaries, and those ranks are growing every day. Without a viable alternative, the Right’s attacks on the ACA are likely to backfire, he said.

Championing immigrants

Trumka also passionately embraced a stronger campaign on immigrant worker rights, an issue on which unions and most immigrant rights organizations have already been working closely. The AFL-CIO has become much sharper in its criticisms of the deportation of immigrants, which has soared under Obama. “I think there is a rationale to stop the deportation,” Trumka said. “The system is broken. Three and one-half minutes of due process is a broken system,” he said, citing the average time for a legal deportation hearing with translation time factored out, drawing on a report by a deportation hearing judge to an AFL-CIO committie.

The AFL-CIO also intends to continue its work with “civic engagement” of immigrants, particularly by encouraging the naturalization and voter registration of the approximately 9.7 million legal immigrants eligible to become citizens, and eventually the registration of the 15 million U.S.-born children of immigrants who will become eligible to vote as they turn 18.

On an ideological level, he combined emphasis on fighting deportation and encouraging citizenship represents labor’s growing identification with a broader democratic movement. And on a pragmatic level, fighting deportation removes a tool employers often use to threaten migrant workers and depress wages, while naturalization and voter registration of immigrants, who tend to be progressive, increase the odds of electing liberal politicians.

Although prospects for passing any federal immigration bill appear dim, the AFL-CIO will continue to push for it, if for no other reason than to make the Republicans’ political quagmire over immigration deeper and stickier at election time.

The AFL-CIO executive council, which is made up mainly of presidents of affiliated unions, also is working to implement two other convention resolutions: how to make the AFL-CIO’s state federations and local central union bodies more accountable for following federation strategies and for fostering mutual support among unions, and how to expand and strengthen alliances with other progressive groups.

RoseAnn DeMoro, head of National Nurses United and a member of the executive council, applauds Trumka’s efforts to mobilize labor for a larger challenge to corporate power. “Rich wants to change how we’re doing our work completely,” she said. “He wants everyone working collectively. He wants us in low-wage areas. He wants us mobilized in every street. He’s talking about a completely reformed, far more aggressive labor movement. We’re at a crossroads. We either completely transform or continue in the same direction.”

This article was originally printed on Working In These Times on February 24, 2014.  Reprinted with permission.

About the Author: David Moberg is a senior editor of In These Times, has been on the staff of the magazine since it began publishing in 1976. Before joining In These Times, he completed his work for a Ph.D. in anthropology at the University of Chicago and worked for Newsweek. He has received fellowships from the John D. and Catherine T. MacArthur Foundation and the Nation Institute for research on the new global economy.


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