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Here’s What’s in the New Bill Jointly Backed by Uber and the Teamsters in Washington State

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Uber’s lobbyists, after clinching an agreement with UFCW Canada to launch a charm offensive at the Ontario provincial government for employee-like benefits on behalf of an estimated 100,00 drivers, weren’t done hobnobbing with unions.

Next up, the Teamsters in Washington state are working on a deal with Uber and Lyft.

The legislation would give ride-hail workers new benefits—sick pay, a process to appeal deactivations, protections against retaliation, and workers’ compensation—in exchange for codifying their status as independent contractors rather than employees, and preempting cities from regulating the rideshare companies as Seattle has done.

Washington lawmakers passed the bill, HB 2076, backed by Teamsters Local 117,
with 55 yeas to 42 nays on February 23. The Senate will hold a public hearing February 26.

“HB 2076 exemplifies Washington State’s spirit of leadership and innovation,” Teamsters Local 117 Vice President Brenda Wiest wrote to House representatives February 22 in an email obtained by Labor Notes. “This bill is supported by both Uber and Lyft, as well as the Teamsters, their affiliated Drivers Union, and dozens of labor and community-based organizations across the state. Moreover, it is backed by the people who matter most—the drivers themselves.”

The Teamsters international declined to comment on the legislation.

FLASHPOINT OF DEBATE

It’s a flashpoint of debate in the labor movement: should unions keep fighting for employee status for gig workers, or cut a deal to head off worse odds down the road? After all, unions and drivers are squaring off against Uber and Lyft, who with their bottomless pits of cash forced their way in California in a 2020 ballot initiative, Prop 22.

The companies have made explicit the threat that, if they don’t get this legislative compromise, they will pursue a ballot initiative in Washington. Lyft has put $2 million into a newly formed political action committee Washington Coalition for Independent Work with clones in New York, Illinois, and Massachusetts. It also has the backing of Instacart, DoorDash, and Uber, which have committed to contribute to the PAC.

What’s curious about this bill is that it has the backing of Teamsters Local 117 and its affiliate Drivers Union, which previously supported efforts to boost gig worker protections. Drivers Union members said the rationale for throwing their support behind a legislative deal with Uber and Lyft is the ballot initiative threat.

“They’re also holding the gun at our heads with the possibility of an initiative,” said Don Creery, 68, a ridehail driver since 2013 and a board member of the Drivers Union. “They spent $200 million on California. It comes down to the reality that we don’t have the money to buy TV ads. They do. They will misinform the public with a barrage of TV ads, so we will lose an initiative. We could lose everything.”

Jake Laundry, 29, has been an Uber driver since 2015; he is a member of both the Drivers Union and IATSE Local 15, where he is an audiovisual worker. He considers himself a Teamster and didn’t want to say anything that would jeopardize the union. But he’s heard that pitch about the initiative threat too many times. Laundry views this bill as making “a deal with the devil.”

“It’s great you have a wage floor and then will improve wage conditions in outlying areas [outside] of Seattle,” he said. “But this contractor relationship also locks in a sort of technocratic feudalism.”

Creery has no qualms with contractor status. “I’m not really concerned about us not being designated as employees,” he said. “In our union, we abandoned that seven years ago, eight years ago. We can be independent contractors and get rights. These are laws that can be changed by us, and we did.”

The Drivers Union’s biggest victories, though, were won at the city of Seattle—and this bill would put an end to that by reserving the regulation of rideshare companies to the state.

“Now you’re just kind of at the whim of the state legislature, which swings really moderate,” Laundry said. “Here in Washington, we have crazy secessionists that want a holy war. We’re not gonna get any labor victories out of them.”

PAY RAISES

What Creery feels “conflicted” about is the pay raises in the bill. “If you’re a Tacoma driver, it’s really outstanding pay rates,” he said. Currently, “once you leave Seattle city limits, our pay drops by 40 percent.” Drivers in Tacoma, who now get 80 cents a mile, would increase to $1.17.

Waiting time and travel miles without a passenger in the car would be uncompensated, though, and the base fare would be between $3 and $5.17 per trip. “To pay one of us $3 is class warfare,” said Creery.

The bill establishes two tiers of pay. For trips originating in cities with more than 600,000 people (Seattle), the rate would be $1.38 per mile driven with a passenger in the car and 59 cents per minute. Those figures are based on Seattle’s Fair Pay Law, which took effect January 1, 2022. Elsewhere, the rate would be $1.17 per passenger mile and 34 cents a minute.

Yearly pay increases based on the cost of living would begin September 30, 2022.

Mohamed Diallo, 33, has been driving for Lyft and Uber since 2017. He’s in favor of the legislation because his rent in Kent has skyrocketed. He also wants to extend the benefits like sick pay and the right to contest deactivations through an appeals process beyond Seattle to Kent and other parts of Washington state.

He said other drivers from his native Guinea are also in favor of the bill, describing it as “wonderful news.”

“Last year, my two-bedroom used to be $1,500,” Diallo said. “Today I talked to my leasing office because my lease is going to be over and I have to sign a new one. It’s $2,030.” He also feels the financial strain at the gas pump; he’s averaging $180-$200 to fill the tank of his Toyota Highlander SUV. He says the new legislation will increase his average earnings from about 90 cents per mile in Kent to $1.17, and spare him the commute into Seattle where the rates are higher.

Diallo works six days a week, 12-hour shifts, with only Tuesdays off. He has two young children, a boy of six months and a two-year-old girl. “The most important thing about the bill is I will get more money to put food on the table,” he said.

Uber touts “flexibility” as a perk it offers to drivers. But “I don’t think flexibility is as important for the guys with the Teamsters,” said Laundry, who connected me with Diallo. “They’re driving 70, 80 hours a week. They’re just scrambling to support their families. They’re working their tails off, so they don’t really have a flexible life.”

THE BEST WE CAN GET?

Why would any union agree to be involved in these compromise bills? The argument goes that we’re not going to win on employee status, plus there are innumerable hurdles to organizing gig workers at scale… so creating a third category, an independent contractor with at least some labor rights, is the best deal the labor movement can get.

Nicole Moore from Rideshare Drivers United in California finds a contradiction in that position. “There’s more demand for unions, a better minimum wage, and labor rights,” she said. “Compromise is absolutely the wrong direction. This is not to say we can’t get legislation on the road to employee status—but not at the cost of our labor rights.”

The app-based companies and their labor collaborators tout the notion of creating “portable benefits” that follow you from gig to gig. But “labor rights are portable benefits,” Moore said. “I have my rights to unemployment. If I get hurt on the job, I have portable benefits to workers’ compensation. Anything other than that is taking some people completely out of the picture.”

For Moore, the defeatist attitude that employee status isn’t winnable harks back to the National Labor Relations Act’s exclusion of agricultural and domestic workers. Like those workforces, the gig workforce is largely people of color and immigrants.

A personal vehicle makes for a very isolated and lonely workplace, which is why most gig workers’ organizing kicks off online. “We know each other in the parking lot of the airports,” Moore said. “We know each other online, because we find Facebook pages and Reddit in order to share information and understand. We are ready to organize.”

DEVIL IN THE DETAILS

In the breezy language of Wiest’s email to state representatives, the benefits of the deal appear excellent. But not all that shines is gold. It can be a spear.

One of the sharpest daggers in the bill is preemption—giving the state government the exclusive power to regulate rideshare companies, so that Seattle could no longer enact wage increases or new rules about drivers’ working conditions.

“The Teamsters-affiliated Drivers Union has already won the nation’s leading labor standards for Uber and Lyft drivers at the local level in Seattle,” said Kerry Harwin, communications director for the Drivers Union, in a statement to Labor Notes. “Seattle’s first-in-the-nation protections have demonstrated a meaningful impact for Uber and Lyft drivers, who enjoy the highest minimum wage in the country, the nation’s first paid-sick days for gig workers during the pandemic, and the country’s only legal protections against unfair deactivations.”

Seattle’s City Council passed the Gig Worker Paid Sick and Safe Time ordinance, backed by Teamsters Local 117, in June 2020. Since then the city’s Office of Labor Standards has reached a $3.4 million settlement for violation of the policy with Uber and a $1 million settlement with the online food delivery company PostMates. It also reached a $350,000 settlement with DoorDash and PostMates in violation of a pandemic-related hazard pay law for food delivery workers; each company had to pay restitution to about 3,000 workers.

In September 2020, Seattle hiked the minimum wage for Uber and Lyft drivers to $16.39 per hour (it’s now $17.27) and required the ridehail companies to pay drivers at least 56 cents per minute drivers are traveling to pick up a passenger or carrying one; it also covers driver expenses.

For Uber and Lyft, this combination of a progressive city council and workers organizing was too much. Their business model depends on misclassification, and on state government footing the bill for benefits that employers are traditionally on the hook to provide. So they went to the legislature.

NO BENEFITS DURING ROVING TIME

In the email to state representatives, Wiest said the bill would provide rideshare drivers with workers’ compensation under the “same robust state-run program that protects employees in Washington State.”

But in fact, workers’ comp would only be in effect when a driver is on the way to pick up a passenger or actually has a passenger in the car; the legislation describes these activities as “dispatch platform time” and “passenger platform time” respectively.

This leaves workers vulnerable if they get injured between fares, while they are roving and awaiting a new trip request. A 2020 UC Berkeley Institute for Research on Labor and Employment study estimated this cruising without a passenger is 35 percent of their work time. This method is also used to calculate the premiums that Lyft and Uber will pay into state coffers for workers’ comp.

Weist championed the paid sick protections, which she said would be “at the same accrual rates for all workers.”

But paid sick leave would not accrue at the same rates for independent contractors as it does for employees. Again, it would exclude the time drivers are waiting for passengers, and in this case also the time they drive to fetch them after being pinged for a trip. Drivers would only earn paid sick time when a passenger is in the car, which the same study estimated to be roughly 53 percent of their work time. As a result, drivers will have to work twice as long as other workers to qualify for the same amount of time off.

“We are frontline workers—providing trips to nurses and other essential workers during the pandemic,” said Ahmed Farah, a Drivers Union member who has driven for Uber and Lyft since 2016, in an emailed statement. “As a father of three, paid sick days is a very important protection when my kids get sick.”

Drivers would be eligible for unpaid sick leave after working for 90 days for a ridehail app.

Paid family leave was included in an earlier draft of the bill, but was scrapped from the final legislation. Weist’s email doesn’t mention the change, but Drivers Union staff continue promoting the idea that it is in the current bill.

Unemployment insurance will be studied by a “work group of stakeholders” drawn from labor and the gig industry with the deadline of producing a report by December 1, 2022.

‘DRIVER RESOURCE CENTER’

Protection from retaliation and an appeals process to negotiate driver deactivations are critically important for drivers. How would the legislation address this? It would provide a direct line of funding for the Drivers Union, which presumably meets the criteria in the legislation to serve as a “driver resource center.” (It may be the only group to qualify, since the bill says such a group must be able to demonstrate that it has past experience representing rideshare drivers and “providing culturally competent driver representation services.”)

A driver resource center’s services will be paid through a 15-cent per-trip surcharge on riders, with dues membership modeled after the Independent Drivers’ Guild (IDG) in New York City, a Machinists-affiliated company union of Lyft and Uber drivers that receives an undisclosed amount of funding from both companies.

And what would it do? The legislation makes scant mention of what services drivers would receive from the resource center. Asked about that, Harwin, the spokesperson for the Drivers Union, didn’t elaborate much: “It will provide support services to drivers, including representation” when faced with a deactivation.

??The state treasury would oversee the fund. The state director of the Department of Labor would choose the driver resource center through what the bill describes as a “competitive process.” Workers won’t have a say in choosing the non-profit organization, nor in how the money is spent.

The legislation also says the “driver resource center may not be funded, excessively influenced, or controlled by a transportation network company.”

Joe DeManuelle-Hall wrote last year when a similar draft legislation was floated in New York that at a 10-cent surcharge, a similar resource center would have netted $75,000 per day—a staggering $27.5 million per year, based on a calculation of 750,000 rides daily in New York City shortly before the pandemic.

FOLLOW THE MONEY

The idea of bringing an IDG-like deal to the West Coast can be traced back to disgraced ex-Teamsters leader Rome Aloise.

Aloise, once a vice president of the international union, was eventually found guilty of taking gifts from employers, negotiating a sham contract, and using union resources to rig a local union election—and then of running Local 853 and Northern California’s Joint Council 7 while he was suspended from the union for these offenses. He has been “permanently barred from the Teamsters” and “permanently enjoined from participating in union affairs” effective January 31, 2022.

But back in 2018, Aloise was still in power and trying to cut a deal with Lyft and Uber. Among the many exhibits and court documents compiled when he was brought up on internal union charges were various emails from that fall discussing plans (never realized) to create employer-linked driver guilds in Seattle and San Francisco.

Aloise proposed that Seattle’s Teamsters Local 117 and the Workers Benefit Fund, which has ties to Uber and Lyft, should jointly “support the creation of legislation and a guild infrastructure for Seattle Drivers.” In a document shared with WBF CEO Benjamin Geyerhahn, Aloise wrote: “WBF will provide with [sic] polling, legislative support, legal support, its expertise and its relationships with Uber and Lyft. This support includes financial support for these items carrying through until legislation is passed. In exchange, it receives the Teamsters full support and exclusive right to provide benefits to the Seattle drivers…”

In a revealing email to a few other California Teamsters leaders on November 21, 2018, Aloise wrote: “Maybe it is worth talking about setting up a Driver’s Guild in SF, and then of course expanding it at a later date… In NY, a lot of money is pouring into the Guild and back to the Machinists who were behind the establishment of the Guild.”

One year later, he wrote on February 1, 2019: “[Local] 117 heavily involved and substantial negotiations this coming week with both companies. The issue, of course, is how to stop any legislation which would give our core industries any loop hole [sic] to move into this TNC [Transportation Network Company] type model, while allowing Lyft and Uber to operate with some type of meaningful representation for the drivers.”

In 2018, he exchanged emails with former Service Employees president Andy Stern about the need to protect “core industries” for the Teamsters– package delivery and freight transportation– in order to enter into an agreement with Uber. “For any of this to get any traction in California, it will need to have some language about staying out of certain functions, which are core industries to the Teamsters, i.e.; such as package delivery, freight transportation, etc. If there is to be a carve out of their ‘industry,’ this will be essential, and perhaps a model for the other companies to deal with the ramifications of the Dynamix decision.” (At the time, the state’s Supreme Court in its Dynamix decision ruled against misclassification, creating a framework for standards to determine employee status.)

Last-mile transportation and delivery has gigified rapidly since 2018. Think: Uber Freight and Uber Eats. In September of 2020, United Parcel acquired Roadie, a crowd-sourced, same-day delivery company. FedEx bought Shoprunner. Amazon, Walmart, and Target have adopted and expanded their speedy gig-delivery business models to everything from yoga pants and furniture to pet food.

“Online competitors are shipping it from a distribution center going across multiple zones where we’re taking it in the back of a DoorDasher’s car for the same cost as if it was a tennis ball, delivering it the same day, and delivering it at lower cost,” said Petco CEO Ron Coughlin in a March 2021 interview.

What’s to protect UPS Teamsters from their work shifting to Roadie?

Update: this article has been updated to clarify that paid family and medical leave aren’t included in the current bill. But Weist and Drivers Union staff continue to promote the perks of the bill with those as included benefits. It has also been updated to reflect what the passage of the bill would mean for Teamsters in freight and transportation. —Editors

This blog originally appeared at Labor Notes on February 25, 2022

About the Author: Luis Feliz Leon is a staff writer and organizer with Labor Notes.


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The Coronavirus Outbreak Shows the Disgrace of Not Guaranteeing Paid Sick Leave

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The United States is unprepared for the COVID-19 pandemic given that many workers throughout the economy will have financial difficulty in following the CDC’s recommendations to stay home and seek medical care if they think they’ve become infected. Millions of U.S. workers and their families don’t have access to health insurance, and only 30% of the lowest paid workers have the ability to earn paid sick days—workers who typically have lots of contact with the public and aren’t able to work from home.

There are deficiencies in paid sick days coverage per sector, particularly among those workers with a lot of public exposure. The figure below displays access to paid sick leave by sector. Information and financial activities have the highest rates of coverage at 95% and 91%, respectively. Education and health services, manufacturing, and professional and business services have lower rates of coverage, but still maintain at least three-quarters of workers with access. Trade, transportation, and utilities comes in at 72%, but there are significant differences within that sector ranging from utilities at 95% down to retail trade at 64% (not shown). Over half of private-sector workers in leisure and hospitality do not have access to paid sick days. Within that sector, 55% of workers in accommodation and food services do not have access to paid sick days (not shown).

Of the public health concerns in the workforce related to COVID-19, two loom large: those who work with the elderly because of how dangerous the virus is for that population and those who work with food because of the transmission of illness. Research shows that more paid sick days is related to reduced flu rates. There is no reason to believe contagion of COVID-19 will be any different. When over half of workers in food services and related occupations do not have access to paid sick days, the illness may spread more quickly.

What exacerbates the lack of paid sick days among these workers is that their jobs are already not easily transferable to working from home. On average, about 29% of all workers can work from home. And, not surprisingly, workers in sectors where they are more likely to have paid sick days are also more likely to be able to work from home. Over 50% of workers in information, financial activities, and professional and business services can work from home. However, only about 9% of workers in leisure and hospitality are able to work from home.

Many of the 73% of workers with access to paid sick days will not have enough days banked to be able to take off for the course of the illness to take care of themselves or a family member. COVID-19’s incubation period could be as long as 14 days, and little is known about how long it could take to recover once symptoms take hold. The figure below displays the amount of paid sick days workers have access to at different lengths of service. Paid sick days increase by years of service, but even after twenty years, only 25% of private-sector workers are offered at least 10 days of paid sick days a year.

The small sliver of green shows that a very small share (only about 4%) of workers—regardless of their length of service—have access to more than 14 paid sick days. That’s just under three weeks for a five-day-a-week worker, assuming they have that many days at their disposal at the time when illness strikes. The vast majority of workers, over three-quarters of all workers, have nine days or less of paid sick time. This clearly shows that even among workers with access to some amount of paid sick days, the amounts are likely to be insufficient.

A version of this post originally appeared at the Economic Policy Institute

This article was originally published at InTheseTimes on March 9, 2020. Reprinted with permission. 

About the Author: Elise Gould joined EPI in 2003. Her research areas include wages, poverty, inequality, economic mobility and health care. She is a co-author of The State of Working America, 12th Edition.


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Jimmy John’s Fired Workers for Making a ‘Disloyal’ Meme. A Court Just Ruled That’s Okay.

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In a decision emblematic of the new climate of Trumpian governance, a federal appeals court in St. Louis ruled on July 3 that it is acceptable for the boss of a fast-food chain to fire workers for the sin of being “disloyal.”

The U.S. Court of Appeals for the Eighth Circuit reversed a ruling issued by the Obama-era National Labor Relations Board (NLRB) in a case spawned by a labor organizing drive at the Jimmy John’s fast-food chain. The court held that Miklin Enterprises, the owner of Jimmy John’s franchises in Minneapolis, had the right to fire six pro-union advocates because they demonstrated “disloyalty” by distributing flyers in 2011 that implied the company was selling unsafe food contaminated by employees obliged to work while sick with the flu.

The organizers designed and distributed memes that showed images of identical Jimmy John’s sandwiches. One was “made by a healthy Jimmy John’s worker,” the other by a “sick” worker. “Can’t tell the different?” the poster continued. “That’s too bad because Jimmy John’s workers don’t get paid sick days. Shoot, we can’t even call in sick. We hope your immune system is ready because you’re about to take the sandwich test.”

The Minneapolis union campaign, launched by the Industrial Workers of the World (IWW or ‘Wobblies’), has been high-profile from the start. First erupting in 2010, the effort quickly developed into an intense legal fight at the NLRB before advancing to the federal courts. It even spilled over into the U.S. Congress in 2014 with the revelation that Jimmy John’s routinely required its low-paid sandwich makers to sign questionable “non-compete agreements.”

Threatened with punitive action by the attorneys general in several states, Jimmy John’s rescinded its non-compete policies in 2016, but not before the company’s reputation had been tarnished.

Like the non-compete agreements, the July 3 court decision is an unwarranted attack on labor rights, says William B. Gould IV, a labor law professor at Stanford University and former chairman of the federal labor board.

“The first thing that strikes you is how archaic this feels,” Gould tells In These Times. “The legal basis is from a case in the 1950s when people had a whole different concept of loyalty owed to their employer.

“In those days,” Gould continues, “the assumption was that loyalty was a two-way street: You were loyal to the company and the company was loyal to you. Now, with Uber and Lyft and the others, companies are even refusing to admit that you are one of their employees, so there isn’t much talk about loyalty owed to the employer anymore.”

The July 3 decision turns on the interpretation of ‘loyalty’ articulated in the 1953 Supreme Court case National Labor Relations Board v. Local Union 1229 International Brotherhood of Electrical Workers, known as “Jefferson Standard” for short. Earlier in the process of the more recent NLRB case, the labor agency’s Obama appointees had ruled that the firing of the workers was an illegal violation of their rights to form a union. But the appeals court decision reversed that decision, asserting that the disloyalty displayed by the pamphlets gave the employer the right to fire the workers, Gould explains.

The court stated, “(W)hile an employee’s subjective intent is of course relevant to the disloyalty inquiry—”sharp, public, disparaging attack” suggests an intent to harm the Jefferson Standard principle includes an objective component that focuses, not on the employee’s purpose, but on the means used—whether the disparaging attack was ‘reasonably calculated to harm the company’s reputation and reduce its income,’ to such an extent that it was harmful, indefensible disparagement of the employer or its product.”

Erik Forman was fired six years ago for organizing a union at a Jimmy John’s in Minneapolis. He told In These Times, “The big takeaway for me is that this ruling means workers do not have the right to tell the truth about their employer,” he said, adding: “The ruling is incredibly slanted towards the employer. They frame our campaign for sick days as an attack on the employer and turn logic on its head. We told the truth about the risk to the public.”

“Employers’ motivation wasn’t just to stop the sick-day campaign,” Forman continued. “It was to stop our unionization effort.”

According to Gould, “This case comes from the 8th Circuit which is the most conservative in the country. It’s the worst circuit in the country for a labor union, or for labor rights.”

The ultra-conservative nature of the ruling may have the unintended benefit of limiting its applicability to workers other than the Minneapolis Jimmy John’s employees, the former NLRB chairman adds. Other judicial districts may not be eager to follow its lead because many traditionally defer to the NLRB in matters of this kind, he says, and few employers will want to take the legal risk of relying on a circuit court ruling that has not been confirmed by the Supreme Court.

The reversal of the Obama-era NLRB decision mirrors action in Congress, where several measures are under consideration to roll back pro-worker measures adopted by the labor board during Obama’s tenure. This week, the U.S. Senate is considering thenomination of two Trump NLRB appointees, both of whom have been criticized as anti-worker by the AFL-CIO.

Carmen Spell, an NLRB representative at the agency’s Washington, D.C. headquarters, would only comment that “(w)e are considering options at this time” on how the agency will respond to the court ruling.

Jane Hardey, a spokeswoman for Jimmy John’s, declined any comment, asserting that the legal case involved only the Minneapolis franchise owner, and did not involve the sandwich chain company itself. Hardey did not respond to a request from In These Times for a telephone interview with Jimmy John Liautard, the controversial founder of the franchise.

According to the Jimmy John’s web site, the rapidly growing chain currently has 2,701 locations in 48 states. The number of employees is estimated at over 100,000.

“The fact that we were fired over six years ago in retaliation for union organizing should tell everyone that you cannot rely on labor law in this country,” says Forman. “Every single decision can now be appealed up to a Trump Supreme Court. We need to find new ways of building and exercising power on our own.”

This article was originally published at In These Times on July 13, 2017. Reprinted with permission.

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


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Groundbreaking Bill in Illinois Would Give Temp Workers Equal Pay and Rights as Direct Hires

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Sweeping legislation introduced in the Illinois state legislature last month would dramatically improve pay, benefits and working conditions for almost a million of the state’s temp workers toiling in factories, warehouses and offices.

The Responsible Job Creation Act, sponsored by State Rep. Carol Ammons, aims to transform the largely unregulated temporary staffing industry by introducing more than 30 new worker protections, including pay equity with direct hires, enhanced safety provisions, anti-discrimination measures and protection from retaliation.

The innovative law is being pushed by the worker centers Chicago Workers’ Collaborative (CWC) and Warehouse Workers for Justice (WWJ), which say it would restore the temp industry to its original purpose of filling short-term, seasonal labor needs and recruiting new employees into direct-hire jobs.

Across Illinois, there are nearly 850,000 temp workers every year. Nationally, temp jobs are at record highs, with more than 12 million people flowing through the industry per year.

“Instead of temps just replacing people who are sick or coming during periods of higher production, they’re actually becoming a permanent staffing option,” says CWC executive director Tim Bell. “There’s nothing ‘temporary’ about it.”

Mark Meinster, executive director of WWJ, says there has been “an explosion” of temp workers in recent decades, especially in manufacturing and warehousing. “Those sectors are part of large, global production networks where you see hyper competition and an intense drive to lower costs. Companies can drive down labor costs by using temp agencies.”

CWC activist Freddy Amador worked at Cornfields Inc., in Waukegan, for five years. He tells In These Times the company’s direct hires start off making at least $16 an hour, but later get raises amounting to $21 an hour. As a temp, however, Amador was only making $11 an hour after five years on the job.

“As a temp worker, you don’t have vacation days, sick days, paid holidays”—all of which are available to direct hires, Amador says.

In These Times reached out to Cornfields to comment on this story. It did not immediately respond.

“Once a company is using a temp agency, it no longer has to worry about health insurance, pension liability, workers’ comp, payroll and human resources costs,” Meinster explains. “It also doesn’t have to worry about liability for workplace accidents, wage theft, or discrimination because, effectively under the law, the temp agency is the employer of record.”

This arrangement drives down standards at blue-collar workplaces, Bell says. “The company itself doesn’t have to worry about safety conditions because these workers aren’t going to cost them any money if they’re injured.”

“The safety for temp workers is really bad,” Amador says. “Temp agencies send people to do a job, but nobody trains them. Sometimes temp workers are using equipment they don’t know how to use, and they’re just guessing how to use it. I’ve seen many accidents.”

Under the new bill, temps like Amador would receive the same pay, benefits and protections as direct hires.

“This is landmark legislation,” Bell says. “There’s nothing like it in the United States.”

Last year, the Center for Investigative Reporting found a pattern of systemic racial and gender discrimination in the temp industry nationwide. Industry whistleblowers allege that African-American workers are routinely passed over for jobs in favor of Latinos, who employers consider to be more exploitable.

Discrimination can be hard to prove because staffing agencies aren’t required to record or report the demographics of who comes in looking for work. As Bell explains, applications often aren’t even filled out in the temp industry, but rather “someone just shows up to go to a job.”

The new bill would require temp agencies to be more transparent about their hiring practices by recording the race, gender and ethnicity of applicants and reporting that information to the state.

Furthermore, the bill includes an anti-retaliation provision that says if temp workers are fired or disciplined after asserting their legal rights, the burden is on the company and temp agency to prove that it was not done in retaliation.

“There’s this fundamental imbalance in the labor market that leads to a whole range of abuses and then non-enforcement of basic labor rights,” Meinster explains. “The changes we’re proposing in this bill get at addressing that structural issue.”

To craft the bill and get it introduced, CWC and WWJ received research and communications support from Raise the Floor Alliance, a coalition of eight Chicago worker centers. The Illinois AFL-CIO, National Economic and Social Rights Initiative, National Employment Law Project, Latino Policy Forum and Rainbow Push Coalition are among the legislation’s other supporters.

Though the Illinois government is still paralyzed by an unprecedented budget stalemate between the Republican governor and Democratic legislature, organizers are optimistic about the bill’s prospects.

“There’s potential for huge movement around this bill,” Bell says, citing the popularity of the presidential campaigns of Bernie Sanders and Donald Trump, which both touched on the theme of economic insecurity. While Trump focuses on jobs fleeing the country, Bell notes that “jobs here in this country have been downgraded.”

“We need to be talking about job quality, not only ‘more jobs.’ Both are important,” Meinster says. He believes existing temp jobs “could and should be good, permanent, full-time, direct-hire, living wage jobs with stability, respect and benefits.”

The author has worked with WWJ in the past on issues related to the temp industry.

This blog originally appeared at Inthesetimes.com on February 9, 2017. Reprinted with permission.

Jeff Schuhrke is a Working In These Times contributor based in Chicago. He has a Master’s in Labor Studies from UMass Amherst and is currently pursuing a Ph.D. in labor history at the University of Illinois at Chicago. He was a summer 2013 editorial intern at In These Times. Follow him on Twitter: @JeffSchuhrke.


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Philadelphia Joins the Growing List of State/Local Governments Passing Paid Sick Days Laws

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Kenneth QuinnellThe city of Philadelphia is set to become the 17th city (along with three states) that requires paid sick leave after Mayor Michael Nutter (D) signed legislation passed yesterday by the City Council. Philadelphia is the second city, after Tacoma, Wash., to pass paid sick days this year so far. Nutter previously vetoed similar laws because he said the economy couldn’t handle the change during a recession.

Councilman William K. Greenlee, who sponsored the bill, said:

“The people who do not have paid sick leave are the people who need it the most. They’re low-income workers, single mothers; they’re college students or people just starting in the workforce.”

The law goes into effect in 90 days, when businesses with 10 or more employees will be required to give workers a paid hour of sick leave for every 40 hours worked, up to five days a year. The sick time can be used for personal illness or that of a family member, or in seeking support after domestic violence or sexual assault.  While 200,000 Philadelphia residents will benefit from the new law, it still excludes independent contractors, seasonal workers, adjunct professors, interns, government employees and workers covered by collective bargaining agreements. Businesses that already offer comparable or better paid sick leave to their employees will not have to change their rules. Violations of the law can be punished with fines, penalties and restitution.

As Think Progress notes, dire warnings of the negative effects of paid sick leave laws have failed to materialize elsewhere:

“Despite the concern from business that paid sick leave requirements will be too costly, the evidence from places that already have them backs up the idea that they won’t be harmful. The vast majority of employers have come to support these laws, while they haven’t hurt local economies and, in fact, many cities have outperformed after their laws were enacted.”

This blog originally appeared on aflcio.org on February 13, 2015. Reprinted with permission.

Author’s name is Kenneth Quinnell.  He 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.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.


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Healthy Families Act Would Let Workers Earn Paid Sick Days

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Image: Mike HallThere are least 43 million U.S. workers who cannot earn a single paid sick day and have to decide between losing wages or even risking their jobs to take care of their own illness or a sick family member. On Thursday, Sen. Patty Murray (D-Wash.) and Rep. Rosa DeLauro (D-Conn.) introduced the Healthy Families Act that would give workers the opportunity to earn up to seven paid sick days they could use for personal illnesses or to take care of sick family members.

In related news (see below), the Philadelphia City Council passed a new paid sick days law on Thursday.

Responding to the Healthy Families Act, AFL-CIO Secretary-Treasurer Elizabeth Shuler said:

“Too many people are still being forced to choose between getting a paycheck and taking care of a loved one. Let’s pass the Healthy Families Act and make sure no worker has to make that choice again.”

Nationally more than four in 10 private-sector workers and 81% of low-wage workers do not have paid sick days. A 2014 study by the Institute for Women’s Policy Research shows that Latinos and those who make less than $20,000 a year are the workers least likely to have paid sick days. Only 47% of Latino workers get paid sick days.

Even worse, less than 28% of workers who make under $20,000 a year have paid sick days and many of those are food service workers, and only 24% of food preparation and service workers have access to paid sick days, despite the fact that most health departments recommend that these workers not go to work sick. Said Debra L. Ness, president of National Partnership for Women & Families:

“The Healthy Families Act is about allowing moms to stay home to care for children with strep, without having their pay docked. It’s about adult sons being able to miss a day of work to take an aging parent for medical tests, without losing their jobs. It’s about child care and nursing home staff being able to stay home when they have the flu, instead of infecting the people they care for. It’s about restaurant workers not being forced to report to work, and handle food, when they are infectious. It’s about being able to see a doctor for an eye infection before it becomes severe. It’s about common sense, public health and family economic security. It’s about dignity.”

There also is a growing move across the nation, from Congress to statehouses to city halls, to pass paid family leave and paid sick days legislation. Twenty jurisdictions across the country now have paid sick days standards in place.

The new Philadelphia paid sick leave will require employers with 10 or more employees to allow their full-time and part-time workers to accrue at least five days of paid sick leave a year. Marianne Bellasorte of the group Pathways PA said:

“We are the 17th city to pass paid sick days. So far, there have been no bad reports, nothing has gone wrong. Businesses are thriving, workers are thriving. There’s no reason to believe Philadelphia will be any different.”

California, Connecticut and Massachusetts have state-paid sick day laws.

This blog originally appeared in aflcio.org on February 13, 2015. Reprinted with permission.

About the Author: Mike Hall is a former West Virginia newspaper reporter, staff writer for the United Mine Workers Journal and managing editor of the Seafarers Log.  He came to the AFL- CIO in 1989 and has written for several federation publications, focusing on legislation and politics, especially grassroots mobilization and workplace safety.


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“When we are united we can do anything”- Workers React to Wage Theft Prevention Act Victory

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EJCOn Friday, Mayor Gray signed the Wage Theft Prevention Act of 2014. Click here to see the bill or here for a marked up version of the DC Code that shows the changes that will be made once the legislation goes into effect in late November or early December. The legislation was passed after years of organizing, strategizing and campaigning by the Employment Justice Center, DC Jobs with Justice  and our other allies in the DC Wage Theft Coalition.

After a period of congressional review that should end in late November, the District of Columbia will have one of the strongest laws against wage theft in the country. The new law will combat wage theft by:

  • Establishing formal procedures at the DC Office of Wage-Hour (OWH) to enable victims of wage theft to recover unpaid wages and damages. OWH investigators will have 60 days to arrive at a formal decision, which can be appealed when necessary to an administrative law judge;
  • Increasing the penalties for those responsible for committing wage theft to include tiered administrative and criminal penalties, as well as the possibility of a suspended business license for companies that do not comply with administrative orders to pay the wages owed;
  • Providing greater protection for workers who stand up for their rights, by requiring that all employers issue a written notice of the terms of employment. If the notice is not issued, the worker’s testimony will carry greater weight if they need to demand unpaid wages; and
  • Making it easier for wage theft victims to get legal representation by clarifying how judges must calculate attorneys’ fees in these cases.

In late July, the EJC’s workers’ committee hosted a summer barbecue to celebrate the hard earned victory, look back on what they had won, and to start to develop a vision for the future.

Jose Cruz

Jose Cruz prepared the meat and chicken in a delicious marinade. “I feel content because we fought for this law that will have an effect on the whole community that needs this support. I am content with our organization, because we have fought this battle and we have won. We won and we will keep moving forward! (Me siento contento porque luchamos para esa propuesta y tiene efecto para toda la comunidad que necesita está auda. Me siento contento con toda nuestra organización que hemos luchado para está batalla y la ganamos. Ganamos y vamos a seguir adelante!).”

 

julio sanchezJulio Sanchez, a restaurant worker who testified in support of the Wage Theft Prevention Act as well as the Earned Sick and Safe Leave Act of 2013, shared how his life had changed as a result of his organizing efforts. “I learned that together, we can make something great like the law that just passed, as well as the paid sick days. I am happy because I met more people and I am now in the group. We make a great team. And we never stay silent. (Aprendí que juntos podemos hacer algo grande como la ley que se aprobó, junto con los de los derechos de enfermedad. Estoy feliz porque conocí a más gente y estoy ya en el grupo. Hacemos un gran equipo. Y nunca nos quedamos callados).

Dalia Catalan, a mother who was fired for taking a sick day to take care of her sick child, expressed how she felt when she learned the bill had passed. “When I knew that we had won, wow, I felt happy because of all of our sacrifices, and we did it! (Cuando supe yo que si lo habíamos ganado, wow, me sentí feliz por todos los sacrificios de uno, y si se pudo!).”

“There are laws for me too, and we have rights here, something that I didn’t know.

Si hay leyes para uno también, y tenemos derechos aquí, algo que yo no sabia.”

Dalia’s husband, Carlos Chajon, spoke about his favorite part of the victory. “My favorite part was to become part of a group that is small but with a lot of power and a lot of enthusiasm. I learned that we can share with others, and that there can be laws that can help us. (Mi parte favorita fue de integrarme a un grupo pequeño pero con mucho poder, con bastante entusiasmo. Aprendí poder compartir con otros, y que hay leyes que les puede ayudar).

bruno avilaBruno Avila, who kept the grill running until all the meat was gone, reflected on what this victory means for his community. “My favorite part was that we make our rights worth something, despite everything that someone has going against them, maybe that they don’t have papers, that they have a boss that wants to abuse them, that supervisors in the workplace think that they aren’t going to do anything, we start to plant the seeds of credibility. And with this we can do big things. (Mi parte favorita fue que se hacen valer los derechos, a pesar de todo lo que tienes en contra, ya sea que no tenga documentos, que tenga un jefe que quiere abusar de ti, que supervisores en el lugar de trabajo piensan que no sa va a hacer nada, se empieza a poner las semillas de la credibilidad. Entonces con eso comenzamos a hacer grandes cosas).”

“Here we don’t stop, it’s just the beginning.

Aquí no paramos, es el comienzo de seguir.”

Salvador Martinez discussed what he had learned through this struggle. “I learned that nothing is impossible (Aprendi que no hay nada imposible),” he said. “I am joyful. This beginning, this process, had a big impact on the city and throughout the whole metropolitan área. I am joyful to be part of this group, to volunteer and to help the city so that this city makes progress. (Me lleno de regocijo. este inicio, este proceso, tuvo gran impacto en la ciudad y más allá en la área metropolitana. Me siento gozoso de ser parte del grupo, el cual puedo desempeñarme voluntariamente y ayudar a la ciudad para que está ciudad siempre vaya en progreso).”

“When we are united, we can do everything.

Cuando estamos unidos, todo lo podemos.”

gregorio hernandezGregorio Hernandez had been fighting to recover his unpaid wages for nearly two years. “The dishonest employers will be afraid because they won’t want to lose their license (Se tendrán miedo los empleadores deshonestos por no querer que se les quite su licencia), he said. “I don’t think they will continue working in this way (No creo que van a seguir trabajando así).”

jonny castillo

 

Jhonny Castillo, who will be honored at the EJC’s Labor Day Breakfast as Worker Activist of the Year, spoke about his vision for the future. “We will think about and take on a project to work towards, with the support of the Employment Justice Center (Eso vamos a pensar, vamos a tomar algún proyecto que tengamos para trabajarlo, siempre con la ayuda con el Centro de Justicia),” he said.

 

Mario de la Cruz gave advice to his community: “Don’t give up! You all have rights, but we must lose our fear. We all have rights, we are all children of God. Everyone has rights. (Que no se deje! Que tienen derecho como persona, pero siempre cuando tiene que perder el miedo. Todos tenemos derechos, todos somos hijos de Dios. Todos tienen derechos).”

The EJC is proud to attribute this victory to the hard work and unity of the DC Wage Theft Coalition and the EJC’s workers’ committee. Thanks to the workers who took time off work to speak out at rallies, host community meetings, and tirelessly tell their stories to DC Councilmembers. 

¡Para adelante! Forward!

This blog originally appeared on the Employment Justice Center blog on September 22, 2014. Reprinted with permission. http://www.dcejc.org/2014/09/22/when-we-are-united-we-can-do-anything-workers-react-to-the-wage-theft-prevention-act-victory/

About the Author: The Employment Justice Center was founded on Labor Day 2000, the mission of the D.C. Employment Justice Center is to secure, protect and promote workplace justice in the D.C. metropolitan area.  Since their founding, the EJC has successfully used a combination of strategies to protect the rights of low-income workers, including legal services, policy advocacy, community organizing, and education.  In the past eleven years, the EJC has returned more than $7,000,000 to the pockets of low-wage workers, achieved many legislative victories that have touched the lives of countless workers, educated thousands of workers about their rights and responsibilities on the job, and launched three vibrant community organizing groups. They believe that in securing, protecting, and promoting workplace justice for the most vulnerable among us, we raise the floor of workplace rights for us all.


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Tinder on Fire: How Women in Tech are Still Losing

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  A “whore,” “gold-digger,” “desperate loser,” and “just a bad girl.”  These are only a handful of the sexist comments that Whitney Wolfe, co-founder of the mobile dating app Tinder, alleges she was subjected to by chief marketing officer Justin Mateen.  Last month, Wolfe brought suit against Tinder for sex discrimination and harassment.  Wolfe’s legal complaint details how Mateen sent outrageously inappropriate text messages to her and threatened her job, and how Tinder CEO Sean Rad ignored her when she complained about Mateen’s abuse.  Wolfe claims that Mateen and Rad took away her co-founder designation because having a 24-year-old “girl” as a co-founder “makes the company look like a joke” and being a female co-founder was “sluty.”

The conduct, which Wolfe’s complaint characterizes as “the worst of the misogynist, alpha-male stereotype too often associated with technology startups,” unfortunately remains the norm, and Wolfe is not alone in her experience.  Last year, tech consultant Adria Richards was fired after she tweeted and blogged about offensive sexual jokes made by two men at a tech conference.  After one of the men was fired from his job, Richards experienced horrendous Internet backlash, including rape and death threats.  She was then fired by Sendgrid after an anonymous group hacked into the company’s system in some twisted attempt at vigilante “justice.”

In 2012, junior partner Ellen Pao filed a sexual harassment suits against a venture capital firm, alleging retaliation after refusing another partner’s sexual advances.  And back in 2010, Anita Sarkeesian was the target of online harassment after she launched a Kickstarter campaign to fund a video series to explore female stereotypes in the gaming industry.  An online video game was even released in which users could “beat up” Sarkeesian.  These are just some of the many examples of demeaning attacks against women in the testosterone-driven tech world.

There are many state and federal laws that prohibit the kinds of workplace harassment that these women experience, including the federal Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Bane and Ralph Act, and the California Constitution.  These laws provide strong protections against gender harassment in employment and other contexts.  So why do these attacks on women continue to happen in an industry that is supposedly progressive and populated with fairly educated adults?

It doesn’t help that tech companies are also notorious for their lack of diversity.  This year, Google released its first diversity report which revealed that 70 percent of its workforce was male, and 61 percent was white.  The workforce was also predominantly male and white at Facebook, Yahoo, Twitter, and LinkedIn. Another report this year shows that the percentage of women occupying CIO positions at companies has remained stagnant at 14 percent for the last decade.  These numbers confirm what the stories reflect — that this industry truly is “a man’s world.”  And this needs to change.

Some may dismiss Wolfe’s lawsuit and similar complaints as coming from women who are hypersensitive.  Indeed, Wolfe claims that when she complained about Mateen’s harassment, she was dismissed as being “annoying” and “dramatic.”  While some degree of social adaptation may be expected when joining any company, particularly freewheeling start-ups, there are limits that must be respected.  Those limits are crossed when the pressure to conform to a white, male norm is so great that women who challenge this norm are further harassed or their voices suppressed.

Unfortunately, this marginalization of women who challenge the macho culture even comes from other women, who blame the “feminists” for making it harder for women to advance in tech.  This also needs to change.  Women who speak out about sexism and misogyny in the tech industry deserve the support of their colleagues, and men who turn to vitriol and juvenile behavior to intimidate deserve censure.

But change will not be achieved without help from sources outside the industry.  Attorneys and employee advocates must continue to bring attention to the rampant sexism that is “business as usual” in the tech industry.  We need to encourage tech companies of all stages and sizes to comply with employment laws, adopt proper HR practices, promote diversity and inclusion, and use objective standards to measure performance.  If the tech industry is serious about encouraging young girls to become coders and developers, it also needs to place women in conspicuous leadership roles and pay real attention to change the “guy culture.”

The tech world doesn’t have to be a man’s world, and it shouldn’t be.

 This blog originally appeared in CELA Voice on July 25, 2014. Reprinted with permission. http://celavoice.org/author/lisa-mak/.
About the Author: The authors name is Lisa Mak. Lisa Mak is an associate attorney at Lawless & Lawless in San Francisco, exclusively representing plaintiffs in employment matters. Her litigation work focuses on cases involving discrimination, harassment, whistleblower retaliation, medical leave, and labor violations. She is an active member of the CELA Diversity Committee, Co-Chair of the Asian American Bar Association’s Community Services Committee, a volunteer and supervising attorney at the Asian Law Caucus Workers’ Rights Clinic, and a Young Professionals Board member of Jumpstart Northern California working to promote early childhood education. She is a graduate of UC Hastings School of Law and UC San Diego.

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Small Business Owner Gives Employees Paid Sick Days. World Doesn’t End. New Jersey Doesn’t Go Bankrupt

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Kenneth-Quinnell_smallJersey City business owner Steven Kalcanides, who runs Helen’s Pizza, invited Mayor Steven Fulop to officially sign the city’s new paid sick days ordinance at his restaurant. Kalcanides already has been offering his employees paid sick days and not only has he been able to continue making a profit, his turnover has been very low, with many of his workers staying with him for more than five years.

“As far as I know, it’s been working for me,” he says. “I don’t see it as being the straw that breaks the camel’s back on a business.” Kalcanides says that the new law is how things should be done. “My business is like my family. Everybody that works for me is like family.”

The new ordinance would allow employees at businesses with 10 or more employees to earn one hour of paid sick time for every 30 hours they work, up to a maximum of 40 hours per year. The second largest city in New Jersey will join San Francisco; Seattle; Portland, Ore.; Washington, D.C.; and New York City in requiring paid sick days. The state of Connecticut also has a similar requirement.

Fulop says the new measure would help bridge the gap between the city’s various communities. “I really view this legislation as an important step in that direction.” A similar measure was introduced into the state Assembly last spring.

This article was originally printed on AFL-CIO on October 23, 2013.  Reprinted with permission.

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist whose writings have appeared on AFL-CIO, Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.


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