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Empowering Workers: Worker Wins

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Despite the challenges of organizing during a deadly pandemic, working people across the country (and beyond) continue organizing, bargaining and mobilizing for a better life. This edition begins with:

Baltimore County Public Library Employees Vote Overwhelmingly to Join IAM: Workers at the Baltimore County Public Library (BCPL) had a special reason to celebrate this holiday season. It was announced last week that 460 full-time and part-time library workers voted 77% in favor of forming a union with the Machinists (IAM). The successful vote comes after years of organizing, which included the IAM winning a new state law allowing BCPL employees to collectively bargain. “This is so exciting for Baltimore County Public Library workers,” said Anita Bass, a BCPL circulation assistant III at the Essex branch. “This will empower the staff of BCPL to continue to do the important work of fulfilling BCPL’s mission and vision. We need a system in place to protect and support each other, and a legally binding contract will give us that. I believe in the BCPL mission, and I know the IAM will help us accomplish that mission.” “Baltimore County Public Library employees have always been a critical pillar to our community, and now especially during the pandemic,” said IAM Grand Lodge Representative Bridget Fitzgerald, lead organizer on the campaign. “I could not be more proud of these professionals for joining together and standing strong for what they deserve. This is a victory for them, their families and all of Baltimore County, which rightfully relies on a strong and inclusive library system.”

SHoP Architects Employees Vote to Join Machinists: Employees at SHoP Architects in New York are seeking to become the first private sector architectural workers to successfully organize since the 1940s. More than 130 eligible employees at the firm have signed cards in support of forming a union with the IAM. The firm is known for work on the Barclays Center in Brooklyn and the Steinway Tower south of Central Park, among others. Workers are seeking to reduce their workload and increase pay, after they reported working long hours for pay that doesn’t allow them to pay off the thousands of dollars of student debt those in their field often accumulate. The organizing committee has asked SHoP for voluntary recognition and wants to start a conversation with SHoP’s partners on how to address the challenges they face—and begin making positive changes. “Many of us feel pushed to the limits of our productivity and mental health,” the members of the committee said. “These conditions have become detrimental to our lives and in extension the lives of our families. These concerns are the product of larger systemic issues within the discipline of architecture and are in no way unique to SHoP. From the moment we begin studying architecture, we are taught that great design requires endless time and effort, and in turn demands the sacrifice of personal health and relationships. We are taught that architecture is a greater calling and regardless of how the client is willing to compensate us, we will perform our duty because it is critically important for the greater good.”

Air Line Pilots at Sun Country Ratify Tentative New Contract: Pilots who fly for Sun Country Airlines, members of the Air Line Pilots Association (ALPA), voted 93% in favor of ratifying a new tentative four-year agreement. The pact brings the pilots’ salaries, retirement and other work rules in line with their peers in the industry. The agreement was reached after seven months of negotiations, and reflects the growth and modernization of Sun Country in recent years. “We are proud of this contract that reflects the work we’ve done and contributions we’ve made to help the airline grow,” said Capt. Brian Lethert, Sun Country Airlines ALPA Master Executive Council chair. “We are committed to helping the company continue growing and achieving its objectives through this modern contract, which will ensure the airline is able to retain and attract pilots.”

Kellogg Strike Ends as BCTGM Members Ratify New Contract: After a strike that began Oct. 5, Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) members have approved a new five-year contract that includes “no take-aways; no concessions.” The workers at ready-to-eat cereal plants in Battle Creek, Michigan; Lancaster, Pennsylvania; Omaha, Nebraska; and Memphis, Tennessee, voted in favor of the new agreement, which includes: no permanent two-tier system, a clear path to regular full-time employment, no plant shutdowns through October 2026, increases in pension payments and the maintenance of cost-of-living raises. “Our striking members at Kellogg’s ready-to-eat cereal production facilities courageously stood their ground and sacrificed so much in order to achieve a fair contract. This agreement makes gains and does not include any concessions,” said BCTGM International President Anthony Shelton. “Our entire Union commends and thanks Kellogg’s members. From picket line to picket line, Kellogg’s union members stood strong and undeterred in this fight, inspiring generations of workers across the globe, who were energized by their tremendous show of bravery as they stood up to fight and never once backed down….The BCTGM is grateful, as well, for the outpouring of fraternal support we received from across the labor movement for our striking members at Kellogg’s. Solidarity was critical to this great workers’ victory.”

Oregon Grocery Workers End Strike with Tentative Agreement: Grocery workers, members of United Food and Commercial Workers (UFCW) Local 555, at Fred Meyer and Quality Food Centers in Oregon ended a strike after reaching a tentative labor agreement. The new contract provides wage increases, improved workplace protections, new retirement and health care benefits. The stores are part of Kroger-owned supermarket chains.

WGAE Ratifies Landmark Contract with VICE: On Friday, the Writers Guild of America, East, (WGAE) announced that its 160 members at VICE Media have ratified a new three-year contract that sets an increased minimum salary of $63,000 and provides minimum yearly wage increases ranging from 3% to 3.75%. The WGAE previously had four contracts at VICE representing four main editorial verticals, but the new contract combines them all into one agreement. “Thanks to a unified and strong union, workers across VICE will now work under one collective bargaining agreement,” said WGAE Executive Director Lowell Peterson. “This new contract and its substantial gains are a testament to the VICE bargaining committee’s diligent efforts to address the concerns and aspirations of workers at a company that continues to grow within the ever-shifting media landscape.”

Ironworkers Emerge Victorious in Strike Against Erie Strayer: After nearly three months on strike, the members of Ironworkers Local 851 in Erie, Pennsylvania, have declared victory. Management at Erie Strayer came “to the table in good faith today to meet us in our demands,” the union announced on Friday. The members of Local 851 held the line, day and night, for months in their fight for a fair contract. “This win is a testament to the power of worker solidarity, and that the best protection and future for workers everywhere is with a union contract made for workers and by workers,” the Ironworkers said in a statement. Their grit and determination to win, together with the support of the local community and the labor movement, is an example to us all.

Vodeo Games Workers Form First Video Game Union in North America: The employees at Vodeo Games have come together to form Vodeo Workers United, the first certified union of video game workers in North America. The union was organized with the Campaign to Organize Digital Employees-CWA (CODE-CWA). Thirteen workers at the video game company, including independent contractors, received voluntary recognition of their new union from their employer. With this recognition, Vodeo Workers United is set to begin bargaining a first contract. “All workers deserve a union and a say in how their workplace is run, no matter where they work, what their employment status is or what kind of conditions they work under,” said Myriame Lachapelle, a producer at Vodeo Games. “We have been inspired by the growing worker organizing within the gaming industry and hope we can set a new precedent for industry-wide standards that will better our shared working conditions and inspire others to do the same.”

OPEIU Members at MOVE Texas Ratify First Contract: Members of MOVE Texas United (MTXU), an affiliate of the Office and Professional Employees (OPEIU) Local 277, unanimously ratified their first contract on Friday, having secured significant gains at the bargaining table. Highlights of the new contract include full benefits paid for by the employer, 40% employee representation on the board, a $50,000 wage floor for full-time employees and a 32-hour workweek. MOVE Texas is a statewide nonprofit organization dedicated to empowering underrepresented youth communities. “To begin at the start of the new year, the 47-page contract will set an unprecedented example for the labor movement in the nonprofit sector,” MTXU said after the vote. “After almost a year of negotiations between the employer and the union, MOVE Texas United can celebrate an inspiring process and several innovative strides.”

Blue Skies Ahead: TWU Members at JetBlue Ratify First Contract: Members of the Transport Workers Union (TWU) who work as flight attendants, or “inflight crewmembers” (IFCs) as JetBlue calls them, decisively ratified their inaugural contract on Monday with the airline. The union said that while successfully negotiating a first contract is not an easy feat to accomplish under ordinary circumstances, it was made even more challenging because of the COVID-19 pandemic and a skyrocketing number of assaults against aviation workers. TWU members at JetBlue have been fighting for a fair contract since overwhelmingly voting to form a union in 2018. “This is a tremendous victory for our 5,500 IFCs at JetBlue. In this time of uncertainty and peril, there is no greater security for workers than a solid contract,” said TWU International President John Samuelsen. “Our JetBlue inflight crewmembers are no longer ‘at-will’ employees of the carrier, but union workers whose employment is secured by an enforceable collective bargaining agreement. What a huge difference it is.” The new contract includes a grievance and arbitration system, work rule improvements, health insurance and retirement benefits, and wage increases.

Big Cartel Workers Form First Tech Union in Right to Work State: Tech workers at Big Cartel received voluntary recognition of their new union, Big Cartel Workers Union, on Monday in a groundbreaking organizing victory. Staff at the e-commerce platform for creative businesses are the first tech workers to form a union in a “right to work” state as the company is based in Salt Lake City. The union members, who are affiliated with Office and Professional Employees (OPEIU) Tech Workers Union Local 1010, will begin bargaining their first contract with their employer next month. “Tech workers are becoming increasingly aware of the power a union brings them at work,” said OPEIU Organizing Director Brandon Nessen. “Unionizing gives working people agency to advance not only their own interests, but the mutual interests shared by both staff and management.”

Wirecutter Union Members Reach Tentative Agreement for Their First Contract: Members of the Wirecutter Union, part of The NewsGuild of New York/CWA Local 31003, announced on Tuesday that they have reached a tentative agreement with management. The workers at The New York Times’ product review site have been fighting for their first contract for two years. They went on a five-day strike during the recent Black Friday shopping season to pressure management to stop its union-busting practices and negotiate a fair agreement. Rallying together with 100% membership participation in the strike, and with the entire labor movement and our allies backing them up, these union members now get to vote on a groundbreaking new contract that includes significant wage increases, the elimination of nondisclosure agreements in cases of harassment, and strong diversity, equity and inclusion commitments. “We’ve fought to build our power over the last two years, despite continuous union-busting from The New York Times,” the Wirecutter Union tweeted. “The result is a bargaining agreement we’re proud of.”

VTDigger Newsroom Employees Secure First Collective Bargaining Agreement: Workers at VTDigger, members of the Providence Newspaper Guild (TNG-CWA Local 31041), ratified their first-ever collective bargaining agreement. The three-year deal “establishes consistent standards, rewards longevity, guarantees minimum salaries and overtime pay, and continues to solidify the organization’s commitment to improving diversity, equity and inclusion. It has been a long and at times difficult conversation, but we had it as equals, and the organization is much stronger for it,” said Lola Duffort, co-unit chair of the VTDigger Guild. “I am delighted we have arrived—unanimously—at such a robust agreement.” The new contract includes minimum salaries, cost-of-living increases, paid sick leave, paid parental leave, overtime pay, salary increases and other benefits.

Graduate Researchers Secure Union Recognition and University of California: More than 17,000 graduate student researchers across the University of California’s campuses have secured recognition from the university as members of Student Researchers United, an affiliate of the UAW. UAW Vice President Cindy Estrada said: “The UAW is proud to welcome UC Student Researchers into our union family. They have shown what is possible when workers stand together and refuse to be divided. We look forward to supporting them as they bargain a strong first contract.” Members of the union held a series of protests demanding representation, employment security, protection from harassment and other common workplace protections.

Workers at iHeart Podcast Network Join WGAE: The WGAE broke the news on Thursday that a clear majority of workers at the iHeart Podcast Network—the fastest-growing division of iHeartMedia—signed union cards to organize with the WGAE. The guild is calling on management to voluntarily recognize the union of about 125 producers, editors, researchers, writers and hosts. The iHeart Podcast Organizing Committee wrote a letter to management explaining their decision to form a union with WGAE and expressing their desire for appropriate compensation and benefits, accountability mechanisms regarding diversity and inclusion efforts, and clear paths for advancement and job security. WGAE Executive Director Lowell Peterson said: “We are pleased to welcome the storytellers at the iHeart Podcast Network to the guild. A union is vital to ensuring podcast workers are able to build sustainable careers in an industry where their contributions have been essential to the sector’s continued rapid growth.”

Chalkbeat Workers Unanimously Ratify First Union Contract: Writers at Chalkbeat, represented by the Writers Guild of America, East (WGAE), voted unanimously to ratify their first collective bargaining agreement. The bargaining committee said: “Our members unanimously voted yes on our first contract because these issues were such a priority. We’re all excited to have better guidelines that we know will make Chalkbeat a better place to work. Organizing as a union has already helped our unit members feel more connected, sharing their various work experiences across the country, and working together to make sure we all have better working conditions. We’re excited that Chalkbeat ultimately heard our concerns, and we’re certain the new contract will lead to even more powerful journalism. Strong journalists make for a strong Chalkbeat.” The contract includes salary increases, minimum salary levels, paid parental leave, overtime compensation, improved health benefits, improved protections against sexual harassment, improved health benefits for transgender employees and other gains.

Actors’ Equity Secures Anti-Discrimination and Harassment Provisions in New Agreement with Purple Rose Theatre Company: Actors’ Equity Association announced on Tuesday that the union has reached a new agreement with the Purple Rose Theatre Company in Chelsea, Michigan. Equity said the agreement reflects a shared commitment to creating a safe workplace, free from the discrimination and harassment the company experienced under its previous leadership. In addition to improved compensation and work hours, the two-year contract includes strong language prohibiting bullying, discrimination, harassment and retaliation. “This contract is now one of the strongest Equity contracts in the country in terms of protecting members from discrimination and harassment, and it will be a model for other theatres,” said Equity Assistant Executive Director and General Counsel Andrea Hoeschen. “Actors and stage managers will have a safer workplace because of the courage and efforts of those who revealed a range of working conditions at Purple Rose that were inconsistent with a safe, equitable, unionized workplace.”

SRU-UAW Wins Recognition from the University of California: In a massive victory for the UAW and the entire labor movement, Student Researchers United-UAW (SRU-UAW) announced Wednesday night that the University of California (UC) has recognized their union. SRU-UAW submitted union authorization cards in May after a months-long organizing campaign. Their recognition now means the union will represent 17,000 higher education workers at all 10 UC campuses and the Lawrence Berkeley National Laboratory. SRU-UAW members overwhelmingly voted to authorize a strike in November over UC’s refusal to recognize their bargaining unit. “This historic victory was brought about by the tireless efforts of thousands of student researchers who organized to win a union and a direct response to our massive strike authorization vote,” the union tweeted on Wednesday. “Now let’s win a strong contract for all student researchers!”

Front-Line Grocery Workers Vote to Form a Union with UFCW Local 1439: United Food and Commercial Workers (UFCW) Local 1439 announced Monday that some 250 grocery workers at Fred Meyer in Richland, Washington, will join the union after a victorious election, marking the first time in recent history that an entire store of grocery workers in the state have done so. The organizing win now paves the way for these new union members to move forward in bargaining their first union contract to strengthen pay, benefits and working conditions. “This is an unprecedented victory, inspired by the sacrifices of essential grocery workers during the pandemic,” said Local 1439 Secretary-Treasurer Jeff Hofstader. “We hope this inspires other grocery workers to stand up and exercise their rights.”

Dancers at Ballet Idaho Vote to Join AGMA: The American Guild of Musical Artists (AGMA) and Ballet Idaho announced on Monday that the dancers of Ballet Idaho have voted to join AGMA. A vote was held on Tuesday, Nov. 30, based upon mutual agreement between the union and the performing arts company. Given the result in favor of forming a union, Ballet Idaho has recognized AGMA as the exclusive bargaining representative of the dancers. “AGMA is thrilled to welcome the dancers of Ballet Idaho into the union,” said Leonard Egert, national executive director of AGMA. “We look forward to a collaborative process with the management of Ballet Idaho, as the safety, well-being and long-term success of these artists remain a top priority for both parties.”

Carnegie Library Workers Reach Tentative Agreement on First Union Contract: After voting to join the United Steelworkers (USW) in 2019, approximately 300 workers at Carnegie Library of Pittsburgh have reached a tentative agreement on their first union contract. The four-year contract covers eligible workers at 19 library branches and includes significant gains, including a voice in library decision-making, improved health and safety, pay equity for the lowest-paid workers and more affordable health care. Kira Yeversky, a clerk at the Homewood branch, said: “I’m so proud of every worker who shared their stories and fought for our first contract. They displayed true solidarity, and I can’t wait to see what this next chapter brings for all of us.”

PECSH-MNA Reaches Tentative Agreement at Sparrow Hospital: The bargaining team of the Professional Employees Council of Sparrow Hospital-Michigan Nurses Association (PECSH-MNA), an affiliate of National Nurses United (NNU), reached a tentative agreement with the hospital administration for a new three-year contract last Friday, averting a possible strike. The new agreement includes significant wage increases, no increases in health care premiums, a safe staffing process and contractually guaranteed access to personal protective equipment. “We truly believe that this contract will make a difference for caregivers working at our hospital, for the patients we serve and for our community as a whole,” said Katie Pontifex, RN, president of PECSH-MNA. “We are really proud of the solidarity shown by caregivers in advocating for our patients and our community.” In November, 96% of PECSH-MNA members voted to authorize a strike. Some 2,200 union members will cast their ballots in the coming days on whether to ratify the agreement.

MEBA Secures Pay Bonuses for Vaccinated Interlake Mariners: Marine Engineers’ Beneficial Association (MEBA) President Adam Vokac announced last week that the union has agreed to a new pay policy to compensate fully vaccinated MEBA members sailing for Interlake Steamship Co. The policy doesn’t mandate vaccinations but provides a generous payment for those who are vaccinated or get inoculated against COVID-19, and sets up a system where an additional one-time payment is authorized for members if at least 85% of the fleet is certified to be fully vaccinated. The MEBA said it fully endorses this proactive and fair approach to motivate mariners to get vaccinated.

LIUNA Service Contract Workers Win Higher Wages: Hundreds of thousands of federal government contract workers will receive a pay raise as the Department of Labor’s Executive Order setting a $15 an hour minimum wage goes into effect in January. Thousands of Laborers (LIUNA) members working under service contracts for the federal government, including many supporting the U.S. military, also will benefit from this increase as well as the plan to index the minimum wage to an inflation measure, so that every year after 2022 wages will be automatically adjusted to reflect changes in the cost of living. “The Biden Administration should be commended for helping workers get ahead and ensuring that the workers who support the military and the federal government are able to support themselves and their families,” said LIUNA General President Terry O’Sullivan. “By setting a wage floor for federal contract workers with cost-of-living adjustments, many thousands of Laborers will earn higher wages now and in the future.”

This blog originally appeared at AFL-CIO on January 4, 2022

About the Authors: Kenneth Quinell is a Senior Writer at the AFL-CIO.

Aaron Gallant is the Internal Communications Specialist at AFL-CIO


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For 2nd straight month, Americans quit jobs at a record pace

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The figures point to a historic level of turmoil in the job market as newly-empowered workers quit jobs to take higher pay that is being dangled by businesses in need of help

Americans quit their jobs at a record pace for the second straight month in September, in many cases for more money elsewhere as companies bump up pay to fill job openings that are close to an all-time high.

The Labor Department said Friday that 4.4 million people quit their jobs in September, or about 3% of the nation’s workforce. That’s up from 4.3 million in August and far above the pre-pandemic level of 3.6 million. There were 10.4 million job openings, down from 10.6 million in August, which was revised higher.

The figures point to a historic level of turmoil in the job market as newly-empowered workers quit jobs to take higher pay that is being dangled by businesses in need of help. Incomes are rising, Americans are spending more and the economy is growing, and employers have ramped up hiring to keep pace. Rising inflation, however, is offsetting much of the pay gains for workers.

Friday’s report follows last week’s jobs report, which showed that employers stepped up their hiring in October, adding 531,000 jobs, while the unemployment rate fell to 4.6%, from 4.8%. Hiring rebounded as the Delta wave, which had restrained job gains in August and September, faded.

It is typically perceived as a signal of worker confidence when people leave the jobs they hold. The vast majority of people quit for a new position.

The number of available jobs has topped 10 million for four consecutive months. The record before the pandemic was 7.5 million. There were more job openings in September than the 7.7 million unemployed, illustrating the difficulties so many companies have had finding workers.

In addition to the number of unemployed, there are about 5 million fewer people looking for jobs compared with pre-pandemic trends, making it much harder for employers to hire. Economists cite many reasons for that decline: Some are mothers unable to find or afford child care, while others are avoiding taking jobs out of fear of contracting COVID-19. Stimulus checks this year and in 2020, as well as extra unemployment aid that has since expired, has given some families more savings and enabled them to hold off from looking for work.

Goldman Sachs, in a research note Thursday, estimates that most of the 5 million are older Americans who have decided to retire. Only about 1.7 million are aged 25 through 54, which economists consider prime working years.

Goldman estimates that most of those people in their prime working years will return to work in the coming months, but that would still leave a much smaller workforce than before the pandemic. That could leave employers facing labor shortages for months or even years.

Businesses in other countries are facing similar challenges, leading to pay gains and higher inflation in countries like Canada and the United Kingdom.

Competition for U.S. workers is intense for retailers and delivery companies, particularly as they staff up for what is expected to be a healthy winter holiday shopping season.

Online giant Amazon is hiring 125,000 permanent drivers and warehouse workers and offer pay between $18 and $22 an hour. It’s also paying sign-on bonuses of up to $3,000.

Seasonal hiring is also ramping up. Package delivery company UPS is seeking to add 100,000 workers to help with the crush of holiday orders, and plans to make job offers to some applicants within 30 minutes.

About the Author: The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business.

This blog originally appeared at Politico on November 12, 2021. Reprinted with permission.


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Nevada hospitality workers get ‘right to return,’ this week in the war on workers

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Wage theft is a huge problem that requires a creative solution, this week  in the war on workers | Today's Workplace

Nevada’s “right to return” law has gone into effect, requiring employers to rehire many hospitality workers laid off during the pandemic to their original jobs, or equivalents, as those jobs become available again. Workers will get 24 hours to decide whether to accept a job, and must be available to start within five days.

The non-union Station Casinos, however, are dodging the law for some positions, claiming that the law is just so complicated that they cannot figure out how to recall people to jobs in the right order, so as a result, Station won’t be filling some jobs at all. (The company has recalled 1,500 workers.) In case you were wondering about the motivation here, the company issued a statement about its decision attacking the Culinary Union.

Meanwhile, the workers who’ve long had good jobs in the Las Vegas hospitality industry just want their jobs back.

“I only want to work,” said one worker affected by Station’s decision. “I want all I lost in this time. I want to get it back.”

This blog originally appeared at DailyKos on July 10, 2021. Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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June jobs report shows an unexpectedly strong 850,000 new jobs

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Wage theft is a huge problem that requires a creative solution, this week  in the war on workers | Today's Workplace

The U.S. economy is up 850,000 jobs, according to the June jobs report, and the past two months’ jobs reports were adjusted upward by 15,000. June’s jobs report is the strongest result in 10 months.

The unemployment rate rose slightly, to 5.9%, while the number of people who have been jobless for six months or more rose to 4 million, and “Black unemployment remains in deeply recessionary territory at 9.2%,” the Economic Policy Institute’s Elise Gould tweeted. “What boosted net job growth was an increase in people staying employed,” economist Aaron Sojourner tweeted. “Flows into employment from unemployment and from out of labor force both ticked down. The # of unemployed dropping out of labor force fell 363K=16%. Instead, they continued searching.”

A positive bottom line: “at this pace of job growth, the labor market would be back to pre-COVID health by the end of 2022—a recovery roughly *five times* as fast as the recovery following the Great Recession, thanks in no small part to the [American Rescue Plan],” EPI’s Heidi Shierholz wrote.

Notably, the leisure and hospitality industry gained 343,000 jobs, and that wasn’t just a one-month blip. “Over the last three months, leisure & hospitality has added 977,000 jobs—well over half of the 1.7 million total jobs added over that period,” Shierholz pointed out. Wages have risen in that industry; it’s almost like paying workers better helps draw in more workers. Pay remains abysmally low in leisure and hospitality, though.

There are still 6.8 million fewer jobs than in February 2020. With the jobs the economy would have added since then if the trends in place in early 2020 had continued, there is still a shortfall of more than 7.7 million jobs.

This jobs report cannot be seen as an endorsement of unemployment benefits cut-offs by Republican governors—it’s the June jobs report, but covers mid-May to mid-June, with those cut-offs starting in mid-June. A survey by the jobs search engine Indeed found factors other than unemployment benefits keeping unemployed people without college degrees from looking for work more aggressively.

The economy is rebounding, but the COVID-19 pandemic is not over yet, and the disruptions and trauma it has dealt to workers in all industries will be with us for a long time to come.

This blog originally appeared at DailyKos on July 2, 2021. Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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U.S. added 559,000 jobs in May and unemployment dropped to 5.8%

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Interview with Laura Clawson, Daily Kos Contributing Editor | Smart  Bitches, Trashy Books

After a disappointing April jobs report, May looked significantly better with 559,000 new jobs added to the economy, according to the Bureau of Labor Statistics. That’s still a little short of the 650,000 jobs analysts predicted, but unemployment ticked down from 6.1% to 5.8%, the lowest since the coronavirus pandemic began in March 2020. “America is on the move again,” President Joe Biden declared in response to the report. “No other major economy is gaining jobs as quickly as ours, and none of this success is an accident,” he said, crediting the American Rescue Plan with boosting the recovery.

The Economic Policy Institute’s Elise Gould described the overall report as “a promising sign that the recovery is on track.” Gould continued, ”If this pace continues over the next year, we will likely get down to 4% unemployment by mid-2022 and will be fully recovered before the end of 2022, fully absorbing losses plus population growth.” 

Another piece of good news is that women gained jobs after losing massive numbers of jobs throughout the pandemic, accounting for 56.2% of the new jobs in May. It’s just a start—women would need to gain jobs at that rate for 13 months straight to get back to where things stood in the before times, according to the National Women’s Law Center—but a start is better than another month of continuing to fall behind. Women’s labor force participation rose from 57.2% in April to 57.4% in May, still behind the February 2020 rate of 59.2%.

Nonetheless, there are still 7.6 million fewer jobs than in February 2020, with a total jobs gap of at least 8.6 million (to account for jobs growth that would normally have happened since then).

Once again, in contrast to the claims that restaurants are having trouble finding workers because of high unemployment benefits, the hospitality industry had big growth, adding 292,000 jobs. And while wages rose in hospitality, a possible sign of a labor shortage, EPI’s Heidi Shierholz notes that “the wages of typical workers in leisure and hospitality plummeted in the recession and have largely just regained their pre-COVID trend—i.e. they are now in the ballpark of where they’d be if COVID had never happened.” Josh Bivens had previously argued that rising wages in restaurants are consistent with the return of tipping customers, and may therefore not even represent higher wages being paid by employers.

There’s a long way to go, and too many people are still without jobs—remember that 7.6 million jobs are missing just from what existed in February 2020—as Republican governors make the political, not economic, decision to cut off the $300 weekly federal unemployment benefits supplement because supposedly that $300 is what’s keeping people from looking for work (even though it’s not). That’s increasing the suffering across the country even as people show, month by month, that they are looking to get back to work.

This blog originally appeared at DailyKos on June 4, 2021 Reprinted with permission.

About the author: Laura Clawson has been a Daily Kos contributing editor since December 2006 and a full-time staff since 2011, currently acting as assistant managing editor.


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Trump hails ‘manufacturing miracle’ as factories bleed jobs

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Eleanor Mueller

Trump’s anti-trade agenda and a pandemic-induced recession have combined to shutter factories and accelerate decades-old trends toward automation, eliminating hundreds of thousands of manufacturing jobs, many for good, including in the Rust Belt states he needs to win in November.

The president’s path to the Oval Office was paved by his victory in this factory-intense region, where a downturn in manufacturing that began in 2015 opened the door for him to appeal to demoralized blue-collar voters.

But the White House’s trade wars kicked the sector into another slump in 2019, with Michigan, OhioIndianaWisconsinMinnesota and Pennsylvania facing declines or plateaus in manufacturing employment even back in February — well before Covid-19 forced layoffs at dozens of plants. As of July — the most recent month for which data is available — each state is down between 20,000 and 40,000 workers from prepandemic levels.

That record presents a particularly daunting challenge for Trump to replicate his stunning victory of 2016 as he struggles to overtake Democrat Joe Biden, who appeals more to Midwestern voters than Hillary Clinton did four years ago.

Yet the president is framing his policies as an unmitigated success.

“You better vote for me, I got you so many damn car plants,” Trump said during a Sept. 10 rally in Michigan. “And we’re going to bring you a lot more.”

“Trump has been all in on this huge resurgence of manufacturing employment, and that has not materialized.”

 Mark Muro, Brookings economist

But Michigan was down some 66,500 manufacturing workers in July 2020 from July 2019 — and the general trend, even before Covid-19, was down as well. There were 10,200 fewer manufacturing workers in the state in February 2020 than there were in February 2019.

He had a similar upbeat message for Ohio.

“Over the last six months, we’ve witnessed one manufacturing miracle after another,” the president said on a visit last month to a Whirlpool factory. Ohio was down 48,000 manufacturing workers in July from last year. Pre-pandemic, it had lost 2,200 workers in February from last year.

The trend is mirrored nationwide. Manufacturing across the U.S. is still down 720,000 workers from February despite gaining 29,000 jobs in August, with the pandemic more than wiping out the overall modest gains of 500,000 from Trump’s first three years in office — about the same pace of growth as under President Barack Obama. It was not an improvement over prior years — nor did it manage to restore more than a fraction of the jobs lost in the previous decade, according to an August analysis by the Economic Policy Institute.

A Bureau of Labor Statistics analysis released Sept. 1 said that even prepandemic, the sector was on track to lose nearly 450,000 workers by 2029, the most of any area of the economy. At the same time, output has made a notable recovery due to increased automation, with the industrial production index bouncing back to almost 98 in July — less than 10 points down from February.

That disparity means that many of the losses are likely permanent, economists say.

“Trump has been all in on this huge resurgence of manufacturing employment, and that has not materialized,” said Mark Muro, an economist at the Brookings Institution. “Productivity-enhancing technology, such as robotics, and then international competition: To me, that’s a recipe for continued downward pressure on employment. I don’t think mass employment is likely to return.”

Remember when Congress came to a bipartisan agreement on coronavirus relief … like a million years ago? Well, it doesn’t look like that’s gonna happen again anytime soon — despite the tens of millions of Americans struggling right now.

Manufacturing is hit hard by any recession, but Covid-19 presented unique issues. Few factory jobs can be performed from home, meaning that these workers were some of the first to be furloughed or laid off as the production lines shut down.

While economic downturns typically spur employers to turn away from physical labor and toward automation, the social distancing required by Covid-19 was an extra motivator. Combine that with advanced technology — along with historically low interest rates to make it cheaper to purchase it — and the move was a no-brainer for many manufacturers.

“In recessions of any kind, automation is accelerated because paying workers just becomes more expensive,” Muro said. “Meanwhile, technology and automation has improved and gotten cheaper so it’s easily used.”

More than half of U.S. companies report being more willing to invest in automation as a result of the pandemic, a July survey by Honeywell Intelligrated found. Tyson is shifting to robotic butchers; BMW is implementing artificial intelligence quality control. As of May, sourcing for automation equipment was up nearly 150 percent year-over-year, and up over 20 percent from last quarter.

Long before Trump took office, the U.S. was already well on its way to becoming more efficient at manufacturing with fewer workers. Over the past three decades, output has grown even as employment has declined.

“The fact which gets lost in some of the discussion is that in and of itself, that improvement in productivity — making more stuff per unit of labor input — is a good thing,” said Jeffrey Miron, an economist at the libertarian Cato Institute.

But it also leads to the displacement of workers, and when Trump moved to impose tariffs on Chinese steel, aluminum and other products, that only served to accelerate the effect, economists say. Higher prices for imports have decreased demand, which — when combined with a global economic slowdown — contributed to depress manufacturing employment. On top of that, American exporters are hurt by retaliatory tariffs imposed by other countries.

“A couple of things have played into the manufacturing job losses: One is trade,” said Michael Hicks, an economist at Ball State University who studies manufacturing. “The second, and the bigger effect, really, is the productivity growth of American manufacturing.”

Trump’s reelection campaign maintains that he has bolstered the manufacturing sector during his time in office, pointing to the hundreds of thousands of manufacturing jobs that were added prepandemic.

“Back in 2016, people doubted President Trump could revive manufacturing in the United States, with then-President Obama saying he would need a ‘magic wand’ to bring back manufacturing jobs — but President Trump’s policies delivered,” campaign spokesperson Samantha Zager said. “President Trump is already rebuilding our economy, adding back manufacturing jobs, and continuing to promote policies that boost American manufacturers, no magic wand needed.”

Trump “talked a lot about manufacturing, but the policies he engaged in were predictably damaging to manufacturing,” Hicks said. “As a result of the tariffs his administration imposed, “people buy less [manufactured goods], and if they buy less of them, that causes lower demand for employment.”

Whether Trump wins reelection come November — and is free to continue his trade wars — could have an outsize impact on the U.S. manufacturing workforce, particularly given the sector’s relatively modest job gains since February.

“The returns from layoffs are probably over,” Hicks said. “And so if that’s the case, if we see a second term of the Trump presidency, I would expect manufacturing employment to not be able to crawl back to what it was at the end of the Obama administration.”

When workers lose their jobs in manufacturing, they are most likely to be rehired in the service industry, economists say. It’s often lower-skilled workers who are the first to go, particularly when displaced by automation — and when they do, low levels of education and barriers to relocation mean that they typically end up working in restaurants.

“For 30 years, manufacturing workers have been continually dislocated by robotics and wind up working in service jobs, or moving into nonparticipation,” Muro said. ”The older they were at the time of dislocation, the less likely they have been to rejoin the workforce.”

Between 2000 and February 2020, manufacturing lost about 5 million jobs. Over the same time period, the food services industry gained roughly the same amount, per Labor Department statistics.

“Almost person-for-person that we lost in manufacturing, we gained in restaurants,” William Spriggs, AFL-CIO’s chief economist, said.

The associated drop in wages — manufacturing workers made an average of $28.78 an hour in July, while food service employees made an average of $15.50 — has served to exacerbate economic inequality, Spriggs said.

“The slide, if people leave that industry, seems to be that they don’t end up in some other high-wage industry,” Spriggs said.

This blog was originally published at POLITICO on September 16, 2020. Reprinted with permission.

About the Author: Eleanor Mueller is a legislative reporter for POLITICO Pro, covering policy passing through Congress. She also authors Day Ahead, POLITICO Pro’s daily newsletter rounding up Capitol Hill goings-on.


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Mnuchin Is Now Trying to Destroy Airline Workers’ Job Protections

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Image result for Sara Nelson, the International President of the Association of Flight Attendants

America’s aviation workers won a huge victory in the CARES Act. In the bill, Congress created a grants program that funds paychecks and benefits for two million hourly workers who were going to lose their jobs while planes are grounded. This isn’t a no-strings-attached corporate bailout for airlines. The money goes directly to flight attendants, pilots, mechanics, cleaners, caterers, and wheelchair attendants, so that we can stay on the job, on our healthcare, and out of the unemployment line. It should be a model for how we help all workers impacted by coronavirus.

This bipartisan agreement for workers-first relief could go off the rails now. At the eleventh hour, Sen. Pat Toomey (R-PA) tried to sabotage the program by requiring equity stakes in exchange for the payroll grants, i.e. “warrants.” A last-minute compromise to preserve relief for workers made such warrants entirely discretionary. On Capitol Hill, that’s what’s called a poison pill. In the bill, Congress intended that grants would actually be grants. But Trump Treasury Secretary Steven Mnuchin, so far, has shown little inclination to respect the will of Congress. His public statements imply that in exchange for keeping workers on the payroll for six months, the federal government could take stake in up to 40% of the airlines.

Under those conditions, the airlines will almost assuredly refuse the grants. And it will cause more job losses than our industry has ever seen. If Secretary Mnuchin insists on conditions that airlines can’t agree to, a million workers will get a pink slip in the near term and a total of two million will feel the pain of an industry in collapse on President Trump’s watch. That’s the opposite of what Congress intended and what the President promised. The entire point of the relief bill is to save our jobs, keep people connected to their benefits, and make sure aviation is ready to take off the minute we have this virus under control.

The federal government can take an equity stake in the airlines through warrants on the loans it provides to the companies instead. Warrants on loans make sense because when taxpayers step in to support a private company, the public deserves a share in the profits. That’s worked out well in the past. After 9/11, when airlines were reeling, the government took warrants in exchange for loans, and taxpayers made money. Even the conservative economist Douglas Holtz-Eaton of the American Action Forum, appointed by Mitch McConnell to the Financial Crisis Inquiry Commission in 2009, agrees that warrants on our paychecks make no sense, saying, “far from protecting workers, warrants are a potential assault on them.”

Warrants aren’t just destructive to the relief program, they’re unnecessary. The taxpayer return on the grants program is clear: no layoffs and no furloughs. Every dollar must go to wages and benefits. Two million workers keep paying taxes and stay off unemployment. And by keeping us on the job and on the tax rolls, our workforce will help keep the aviation industry intact during this crisis, able to provide essential services during this national emergency, and prepared to assist in the country’s economic recovery as soon as the “all clear” sounds. If a million workers are sent home, it could take months to get our industry back on its feet, and delay the whole country’s economic rebound. We don’t want our economy sitting at the gate, waiting for a flight crew to arrive.

Finally, these warrants are terrible for the flying public. If you think flying is too expensive or too uncomfortable now, warrants will make it much, much worse. Nearly everything consumers hate about air travel today is a result of past bankruptcies. Without payroll assistance that allows workers to keep their jobs, we’ll see more bankruptcies and consolidation in the industry. That means less competition, and more of the things consumers hate: smaller seats, fewer amenities, and higher and higher fees. The worst thing we can do right now is make demands on the airlines that will force layoffs, reductions in service, less competition and higher fees.

Aviation workers are trained to respond in a crisis. We’ve returned millions of Americans home to shelter, delivered critical medical supplies to healthcare workers on the front lines, and helped with the transport and care of coronavirus patients. We will protect access to air travel for small and rural communities and keep healthcare supply chains open. And we’ll be ready to lift off and support our economic recovery. But, to do that, we need our jobs. We oppose efforts to sabotage this program and we’ll keep fighting for aviation workers and all working people.

This blog was originally published by In These Times on April 2, 2019. Reprinted with permission.

About the Author: Sara Nelson is the president of the Association of Flight Attendants–Communications Workers of America.


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The Trump Budget: The Other Shoe Drops

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When Congress passed a nearly $2 trillion tax cut for corporations and the wealthy in 2017, we warned that the obscene cost of this tax cut bill would be used as a pretext to cut programs that benefit working people.

AFL-CIO President Richard Trumka (UMWA) said at the time that the 2017 tax bill was:

Nothing but a con game, and working people are the ones they’re trying to con. Here we go again. First comes the promise that tax giveaways for the wealthy and big corporations will trickle down to the rest of us. Then comes the promise that tax cuts will pay for themselves. Then comes the promise that they want to stop offshoring. And finally, we find out that none of these things is true, and the people responsible for wasting trillions of dollars on tax giveaways to the rich tell us we have no choice but to cut Medicaid, Medicare, Social Security, education and infrastructure. There always seems to be plenty of money for millionaires and big corporations but never enough money to do anything for working people.

Now those predictions are coming true, as President Trump has released his new budget plan for the coming year.

The president proposes to cut $2 trillion from safety net programs, which is about the same amount as the cost of the 2017 tax bill. His budget plan would cut $1 trillion from Medicaid and subsidies for the Affordable Care Act. The Labor Department gets whacked by $1.3 billion. Adjustment assistance for people who lose their jobs to imports is slashed by nearly $400 million, and a program to help U.S. manufacturing companies create jobs is eliminated. The budget plan also eliminates subsidized student loans and the public service student loan forgiveness program.

While supporters of the 2017 tax bill promised it would benefit working people, almost all of its benefits have gone to corporations and the wealthy, and very little has trickled down to working people. Paychecks are still flat, and too many working people still have to work more than one job just to make ends meet. Wages grew by only 0% in September, -0.1% in October, -0.1% in November and -0.1% in December, when adjusted for inflation.

To make things worse, the president’s budget proposes another tax cut that goes disproportionately to the wealthy?—extending the tax cuts from the 2017 tax bill for another 10 years at a cost of $1.4 trillion over the next decade. Two-thirds of these tax cuts would go to the richest 20% of all taxpayers. Here we go again.

They keep running the same play because it keeps working. Since 2001, the wealthiest 1% of all taxpayers have gotten $2 trillion in tax cuts, and federal tax revenues have been reduced by $5.1 trillion. This is money that should have been used to make life better for working people?—for example, by rebuilding our crumbling infrastructure, funding quality public education for every child and guaranteeing retirement security for our seniors?—rather than building up the fortunes of the 1%.

This article was originally published at AFL-CIO on February 11, 2020. Reprinted with permission.

 


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Donald Trump Flat Out Lied About the Economy In His State of the Union

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Robert E. ScottIn his State of the Union address Tuesday night, President Trump extolled the “blue-collar boom” in the economy along with his purported “great American comeback.” He made this claim based in part on two recent signature trade deals—the United States-Mexico-Canada Agreement (USMCA) and a “phase one” deal with China. Unfortunately, both agreements will likely to lead to more outsourcing and job loss for U.S. workers, and the facts just don’t support Trump’s claims about the broader economy.

Trump comes from a world that has ardently championed globalization, like many of his predecessors. However, that approach has decimated U.S. manufacturing over the past 20 years, eliminating nearly 5 million good factory jobs as shown in Figure A, below. Nearly 90,000 U.S. factories have been lost as well.

Trump has not brought these jobs back, nor will his present policies change the status quo. Globalization, and China trade in particular, have also hurt countless communities throughout the country, especially in the upper Midwest, mid-Atlantic, and Northeast regions. The nation has lost a generation of skilled manufacturing workers, many of whom have dropped out of the labor force and never returned. All of this globalized trade has reduced the wages of roughly 100 million Americans, all non-college educated workers, by roughly $2,000 per year.

In addition, more than half of the U.S. manufacturing jobs lost in the past two decades were due to the growing trade deficit with China, which eliminated 3.7 million U.S. jobs, including 2.8 million manufacturing jobs, between 2001 and 2018. In fact, the United States lost 700,000 jobs to China in the first two years of the Trump administration, as shown in our recent report. The phase one trade deal will not bring those jobs back, either.

In the State of the Union, Trump claimed that he’s created a “great American comeback” and generated a “blue-collar boom” with strong wage gains for lower-income workers. As shown in Figure B, below, globalization has generated huge wage gains for those in the top 20% and especially those in the top 10%, top 1%, and top 0.1% of the income distribution. Average wages for the top 20% increased $15 per hour (33.4%) over the past two decades. Wage gains for the bottom 80% ranged from $1.39 to $2.46 per hour (13.5% to 16.4%).

Donald Trump has failed to reverse these trends, and in many ways, has made them worse. In the past three years, the vast majority of wage gains have gone to workers in the top 20%, continuing the inequality that has been well-established in the era of globalization as shown in Figure C, below. Over the past three years, workers in the top 20% enjoyed average real wage gains of $2.61 per hour, five times the gains of workers in the bottom quintile and nearly 3.5 times the gains enjoyed in the middle 60%.

Wage gains were significantly larger for workers in the bottom 20% than they were for middle-class workers, due largely to measures such as higher minimum wages that took effect in 13 states and the District of Columbia in 2018 and 19 states in January 2019. These are policies that were implemented by state legislatures and local governments around the country to help offset the effects of a decline in the real value of the federal minimum wage. They also helped offset the negative effects of dozens of efforts by the Trump Labor Department to weaken labor standardsattack worker rights, and roll back wages.

Globalization has reduced wages for working Americans by putting non-college educated workers into a competitive race to the bottom in wages, benefits, and working conditions with low-wage workers in Mexico, China, and other low-pay, rapidly industrializing countries. The Trump administration’s two trade deals don’t change that reality. Workers counting on Trump to deliver a “great American comeback” have been left waiting at the station.

This piece was first published at the Economic Policy Institute.

This article was published at InTheseTimes on February 5, 2020. Reprinted with permission.

About the Author: Robert E. Scott joined the Economic Policy Institute in 1997 and is currently director of trade and manufacturing policy research. His areas of research include international economics, the impacts of trade and manufacturing policies on working people in the United States and other countries, the economic impacts of foreign investment, and the macroeconomic effects of trade and capital flows and exchange rates. He has published widely in academic journals and the popular press, including in the Journal of Policy Analysis and Management, the International Review of Applied Economics, and the Stanford Law and Policy Review,  the Detroit News, the New York Times, Los Angeles TimesNewsdayUSA TodayThe Baltimore SunThe Washington TimesThe Hill, and other newspapers. He has also provided economic commentary for a range of electronic media, including NPR, CNN, Bloomberg, and the BBC. He has a Ph.D. in economics from the University of California at Berkeley.

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Economy Gains 266,000 Jobs in November; Unemployment Down Slightly to 3.5%

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The U.S. economy gained 266,000 jobs in November, and the unemployment rate was essentially unchanged at 3.5%, according to figures released Friday morning by the U.S. Bureau of Labor Statistics.

In response to the November job numbers, AFL-CIO Chief Economist William Spriggs tweeted:

 

Last month’s biggest job gains were in manufacturing (54,000), health care (45,000), leisure and hospitality (45,000), professional and technical services (31,000), transportation and warehousing (16,000) and financial activities (13,000). Mining lost jobs (-7,000). Employment in other major industries—including retail trade, construction, wholesale trade, information and government—showed little change over the month.

Among the major worker groups, the unemployment rates for teenagers (12.0%), blacks (5.5%), Hispanics (4.2%), adult men (3.2%), whites (3.2%), adult women (3.2%) and Asians (2.6%) showed little or no change in November.

The number of long-term unemployed (those jobless for 27 weeks or more) declined in November and accounted for 20.8% of the unemployed.

This blog was originally published by the AFL-CIO on December 10, 2019. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.


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