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Fight for $15 Movement Has Won $150B in Wage Raises for 26M Workers in Less Than a Decade

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Home - National Employment Law Project

New York, NY—The worker-of-color-led Fight for $15 and a union movement has won $150 billion in raises for 26 million workers to date, according to a new report from National Employment Law Project (NELP).

Twelve million of the 26 million impacted workers (46 percent) are Black, Latinx, or Asian American; and of the $150 billion in total raises that workers have secured, $76 billion has gone to workers of color and $70 billion to women workers.

New York City fast-food workers first walked off their jobs in November 2012, demanding a $15 minimum wage and union rights. Since then, the movement for higher wages has become one of the most successful workers’ movements in recent memory, leading to higher wages in dozens of states, cities, and counties; putting pressure on some of the world’s largest corporations to raise their pay scales; and transforming public opinion.

“Since 2012, the Fight for $15 movement has brought together thousands of workers across the country, who organized and called for higher wages and union rights. Our report quantifies the impact of this movement in terms of the number of workers who have benefitted, and the higher earnings they have won,” says NELP Senior Researcher and Policy Analyst Yannet Lathrop, who co-authored the study along with San Jose State University Professor T. William Lester and University of North Carolina doctoral candidate Matthew Wilson.

Lathrop continues: “What’s most impressive is that workers have won these wage increases despite every imaginable obstacle­—from a system increasingly stacked against workers and labor unions, to interference from some of the most nefarious corporations, who deployed well-paid lobbyists to fight tooth and nail against higher minimum wages. But workers won in the end. That should tell us that when workers organize, they win.”

These massive wins—amounting to $5,700 in additional annual income per worker—have made a real material difference in the lives of the nation’s millions of underpaid workers and their families. The impact is particularly significant for workers of color—for example, the report finds that state minimum wage increases boosted the earnings of Black workers by $5,100 annually on average; and that local minimum wage increases raised their earnings by $7,300.

While the Fight for $15 movement has been successful, many members of Congress have refused to heed the demands of their constituents and raise the federal minimum wage. July 24 marks 12 years since the federal minimum wage last went up, leaving the millions of workers in the 20 states with wages at the federal minimum—or with no state minimum wage—with income that has not been livable for a very long time. This is structurally racist in design and effect, as most Black workers in the U.S. live in these states.

Congress must listen to the demands of the workers and communities of color leading the movement for higher wages and immediately pass the Raise the Wage Act of 2021, which would gradually raise the federal minimum wage to $15 an hour, with One Fair Wage for tipped workers, workers with disabilities, and youth workers.

“The Black and brown workers leading the Fight for $15 and a union have heroically transformed public discourse on wages, worker power, and workplace democracy—while achieving major policy wins and taking on exploitive corporations,” says NELP Executive Director Rebecca Dixon. “Longstanding racist policy choices have created labor market inequities, segregating workers of color and women—most of all Black women—into jobs with low pay, stagnating those wages. Now Congress must deliver on the demands of this movement, which would advance racial and gender equity in the U.S. and improve the lives of all workers, their families, and communities.

Along with the campaign to pass the federal Raise the Wage Act, workers in the Fight for $15 are organizing to win just-cause employment protections across the country, protections from sexual harassment and violence on the job, living wages above $15, and crucially, the union rights that will help secure all of these demands.

Members of Congress must urgently follow workers’ lead as a matter of civil rights and racial and gender justice.

Read the full report here.

This post originally appeared at NELP on July 27, 2021. Reprinted with permission.

About the Author: The National Employment Law Project is a non-partisan, not-for-profit organization that conducts research and advocates on issues affecting underpaid and unemployed workers.


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How much would it cost consumers to give farmworkers a significant raise?

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The increased media coverage of the plight of the more than 2 million farmworkers who pick and help produce our food—and whom the Trump administration has deemed to be “essential” workers for the U.S. economy and infrastructure during the coronavirus pandemic—has highlighted the difficult and often dangerous conditions farmworkers face on the job, as well as their central importance to U.S. food supply chains. For example, photographs and videos of farmworkers picking crops under the smoke- and fire-filled skies of California have been widely shared across the internet, and some data suggest that the number of farmworkers who have tested positive for COVID-19 is rivaled only by meat-processing workers. In addition, around half of farmworkers are unauthorized immigrants and 10% are temporary migrant workers with “nonimmigrant” H-2A visas; those farmworkers have limited labor rights in practice and are vulnerable to wage theft and other abuses due to their immigration status.

Despite the key role they play and the challenges they face, farmworkers are some of the lowest-paid workers in the entire U.S. labor market. The United States Department of Agriculture (USDA) recently announced that it would not collect the data on farmworker earnings that are used to determine minimum wages for H-2A workers, which could further reduce farmworker earnings.

This raises the question: How much would it cost to give farmworkers a significant raise in pay, even if it was paid for entirely by consumers? The answer is, not that much. About the price of a couple of 12-packs of beer, a large pizza, or a nice bottle of wine.

The latest data on consumer expenditures from the Bureau of Labor Statistics (BLS) provides useful information about consumer spending on fresh fruits and vegetables, which, in conjunction with other data, allow us to calculate roughly how much it would cost to raise wages for farmworkers. (For a detailed analysis of these data, see this blog post at Rural Migration News.) But to calculate this, first we have to see how much a typical household spends on fruits and vegetables every year and the share that goes to farm owners and their farmworker employees.

The BLS data show that expenditures by households (referred to in the data as “consumer units”) in 2019 was $320 on fresh fruits and $295 on fresh vegetables, amounting to $615 a year or $11.80 per week. In addition, households spent an additional $110 on processed fruits and $145 on processed vegetables. Interestingly enough, on average, households spent almost as much on alcoholic beverages ($580) as they did on fresh fruits and vegetables ($615).


Data
 from the U.S. Department of Agriculture’s Economic Research Service show that, on average, farmers receive less than 20% of every retail dollar spent on food, but a slightly higher share of what consumers spend for fresh fruits and vegetables. Figure A shows this share over time for fresh fruits and vegetables: Between 2000 and 2015, farmers received an average 30% of the average retail price of fresh fruits and 26% of the average retail price of fresh vegetables (2015 is the most recent year for which data are available). This means that average consumer expenditures on these items include $173 a year for farmers (0.30 x 320 = $96 + 0.26 x 295 = $77).

Farmers received an average 30% of the retail price of fresh fruit and 26% for fresh vegetables between 2000 and 2015

Farm share of fruit and vegetable retail sales, 2000–2015
DateFruitsVegetables
200026%26%
200128%28%
200229%26%
200328%26%
200425%23%
200528%25%
200630%26%
200730%24%
200827%26%
200928%25%
201029%27%
201133%25%
201236%23%
201335%27%
201435%25%
201538%27%

ChartData

Note: Data for 2015 are the most recent data available from United States Department of Agriculture’s Economic Research Service.

Source: U.S. Department of Agriculture, Economic Research Service, Price Spreads from Farm to Consumer [Excel]. Share Tweet Embed Download image

According to studies published by the University of California, Davis, farm labor costs are about a third of farm revenue for fresh fruits and vegetables, meaning that farmworker wages and benefits for fresh fruits and vegetables cost the average household $57 per year (0.33 x $173 = $57). (However, in reality, farm labor costs are less than $57 per year per household because over half of the fresh fruits and one-third of fresh vegetables purchased in the United States are imported.)

To illustrate, that means that farm owners and farmworkers together receive only about one-third of retail spending on fruits and vegetables even though most, and in some cases all, of the work it takes to prepare fresh fruits and vegetables for retail sale takes place on farms (the exact share of the price farmers receive varies slightly by crop). For example, strawberries are picked directly into the containers in which they are sold, and iceberg lettuce is wrapped in the field. Consumers who pay $3 for a pound of strawberries are paying about $1 to the farmer, who pays one-third of that amount to farmworkers, 33 cents. For one pound of iceberg lettuce, which costs about $1.20 on average, farmers receive 40 cents and farmworkers get 13 of those 40 cents.

So, what would it cost to raise the wages of farmworkers? One of the few big wage increases for farmworkers occurred after the Bracero guestworker program ended in 1964. Under the rules of the program, Mexican Braceros were guaranteed a minimum wage of $1.40 an hour at a time when U.S. farmworkers were not covered by the minimum wage. Some farmworkers who picked table grapes were paid $1.40 an hour while working alongside Braceros in 1964, and then were offered $1.25 in 1965, prompting a strike. César Chávez became the leader of the strike and won a 40% wage increase in the first United Farm Workers table grape contract in 1966, raising grape workers’ wages to $1.75 an hour.

What would happen if there were a similar 40% wage increase today and the entire wage increase were passed on to consumers? The average hourly earnings of U.S. field and livestock workers were $14 an hour in 2019; a 40% increase would raise their wages to $19.60 an hour.

For a typical household or consumer unit, a 40% increase in farm labor costs translates into a 4% increase in the retail price of fresh fruits and vegetables (0.30 farm share of retail prices x 0.33 farm labor share of farm revenue = 10%; if farm labor costs rise 40%, retail spending rises 4%). If average farmworker earnings rose by 40%, and the increase were passed on entirely to consumers, average spending on fresh fruits and vegetables for a typical household would rise by $25 per year (4% of $615 = $24.60).

Many farm labor analysts consider a typical year of work for seasonal farmworkers to be about 1,000 hours. A 40% wage increase for seasonal farmworkers would raise their average earnings from $14,000 for 1,000 hours of work to $19,600. Many farmworkers have children at home, so for them, going from earning $14,000 to $19,600 per year would mean going from earning about half of the federal poverty line for a family of four ($25,750 in 2019) to earning about three-fourths of the poverty line. For a farmworker employed year-round for 2,000 hours, earnings would increase from $28,000 per year to $39,200, allowing them to earn far above the poverty line.

Raising wages for farmworkers by 40% could improve the quality of life for farmworkers without significantly increasing household spending on fruits and vegetables. If there were productivity improvements as farmers responded to higher labor costs, households could pay even less than the additional $25 per year for fresh fruits and vegetables.

If average farmworker earnings were doubled (rose by 100%) through increased spending on fresh fruits and vegetables, a typical household would see costs rise by $61.50 per year (10% of $615). That extra $61.50 per year would increase the wages of seasonal farmworkers to $28,000 for 1,000 hours of work, taking them above the poverty line for a family of four.

This blog originally appeared at Economic Policy Institute on October 15, 2020. Reprinted with Permission.

About the Author: Daniel Costa is an attorney who first joined the Economic Policy Institute in 2010 and was EPI’s director of immigration law and policy research from 2013 to early 2018; he returned to this role in 2019 after serving as the California Attorney General’s senior advisor on immigration and labor.

Philip Martin is Professor of Agricultural and Resource Economics at the University of California, Davis. He edits Rural Migration News, has served on several federal commissions, and testifies frequently before Congress. He is an award-winning author who works for UN agencies around the world on labor and migration issues. His latest book is Merchants of Labor: Recruiters and International Labor Migration, a pioneering analysis of recruiters in low-skilled labor markets explaining the prominent role of labor intermediaries, from Oxford University Press.


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CEO pay is a scandal—or anyway, it should be—this week in the war on workers

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Since 1978, CEO pay has grown 1,007.5% by one measure and a mere 940.3% by another measure, the Economic Policy Institute reports. Average workers? Their pay has gone up just 11.9%. That’s not all, either. The increase in CEO pay has dramatically outstripped the increase for other very high earners, which is positively modest at 339.2%.

The numbers start to seem a little more manageable if you drill down to more recent years, but the inequality is still striking:

CEO compensation has grown 52.6% in the recovery since 2009 using the options-exercised measure and 29.4% using the options-granted measure. In contrast, the typical workers in these large firms saw their annual compensation grow by just 5.3% over the recovery and actually fall by 0.2% between 2017 and 2018.

EPI also finds in the data an indication that no, CEOs aren’t magical unicorns who are worth all that money on their own unique merit: “CEOs of large firms earned 5.4 times that of the average top 0.1% earner in 2017, up from 4.4 times in 2007. This is yet another indicator that CEO pay is more likely based on CEOs’ power to set their own pay, not on a market for talent.”

This blog was originally published at Daily Kos on August 20, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

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New Haven teachers strike drags on for a 14th day this week in the war on workers

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Teachers in California’s New Haven Unified School District have been on strike for 14 days as of Friday. They were considering the school district’s “last, best, and final offer,” which falls short of the pay increases teachers are calling for. The school district entered negotiations offering zero raise, meaning teachers would be falling behind as the cost of living rises.

A group of frustrated parents is attempting a recall of three school board members, saying, “We have witnessed a total and complete lack of willingness and ability of this board to lead us through these difficult times,” and, “Teachers in this school district deserve more from this board of education and administration. The students deserve more from all of us.”

The New Haven strike follows teachers strikes in Los Angeles and Oakland, California; Denver, Colorado; and West Virginia—all in 2019. Teachers in South Carolina; Nashville, Tennessee; and Massachusetts have also held significant protests this year.

This blog was originally published at Daily Kos on June 1, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

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A Historic Day in the Fight for Fair Wages

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seiuHome care workers join call for $15 and a union.

Fast Food workers raise stakes in acts of civil disobedience.

In 150 cities from coast to coast, thousands of working people today demonstrated  at fast food restaurants as part of a “history-making,” growing movement to get our economy moving again by improving wages.

“We’re a movement now… We know this is going to be a long fight, but we’re going to fight it till we win,” Latoya Caldwell of Kansas City, Mo., said in a news story chronicling the many victories for working people that brave fast food workers have won in their fight so far.

At the crack of dawn, 52 fast food workers in Detroit and 21 fast food workers in New York were arrested during sit-ins calling on McDonald’s, Burger King, Wendy’s and others to raise their pay. Additional arrests came soon after everywhere from Chicago to Little Rock.

In Chicago, Atlanta, Boston, Cleveland and Detroit, home care workers – both nonunion and SEIU members – joined fast food workers in their call for $15 an hour and the right to unite in a union.

“Earning $15 would make a huge difference,” LaTonya Allen, a home-care aide in Atlanta who earns $9 an hour, told the New York Times. “It would really help me and my husband pay our bills. It would enable us to do more things together as a family. All we do now is work, work, work.”

Originally appeared in SEIU Blog on September 4, 2014. Reprinted with Permission. http://www.seiu.org/blog/


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Chicago Teachers Vow Renewed Activism Over Revoked Raises

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kari-lydersenChicago teachers will earn a total of about $100 million less than expected in the next academic year, as last week the new Board of Education under new Chicago mayor Rahm Emanuel voted to deny 4 percent raises scheduled for each year of their five-year contract.

Some teachers have called the move a violation of the contract, signed in 2007, though it stipulates the board must decide each year whether the district can afford the raises.

As public school teachers are under attack across the country — painted as overpaid, lazy and ineffective by right-wing pundits and belt-tightening administrators — Chicago Teachers Union members say the latest move could mean war.

Rebecca Vevea reported for the Chicago News Cooperative:

The newly seated Chicago Board of Education may have won the first battle with Chicago teachers this week when it rescinded a 4 percent pay raise, but it may also have ended a relatively peaceful era in labor relations and created a more pugnacious adversary … Some teachers and observers say that backing the union into a corner on wages and other key issues could be the spark to reinvigorate the membership.

The school board said the move was unavoidable given the $712 million gap the schools system is facing. But teachers and critics have questioned the validity of that number. The Chicago News Cooperative also previously reported that among other doubts about the figure, the administration was not accounting for $75 million in federal funds still available to the school system.

Under a state law passed last week – another blow to union teachers – 75 percent of the membership would need to authorize a strike. (The law also makes it harder for teachers to get tenure). But teachers union leaders and members have said frustration over the rescinding of promised raises and other developments means they could reach that threshold.

The union also could move to reopen the contract as a whole, which would mean a third party arbiter’s involvement in drafting a revised contract.

In an editorial published in The Chicago Tribune, teachers union president Karen Lewis wrote:

The Chicago Board of Education voted to deny Chicago teachers and paraprofessionals the very modest raise agreed to in the contract. That’s not right — and more important, it’s bad for our students. Breaking promises with teachers, engineers and lunchroom staff is no way to attract and retain top-notch employees.

Chicago public schools teachers reportedly earn an average $69,000 a year. The Chicago Sun-Times reported that Chicago teachers’ pay ranks 37th statewide. In wealthy Chicago suburbs, average public school teacher pay is more than $100,000 a year. In Chicago, the paper said, only one percent of teachers make six figures. It is widely believed that the salaries, along with a general lack of resources and other problems, are why many of the best teachers in Chicago leave for the suburbs or private schools.

Lewis noted that teachers have expressed their willingness to cooperate in finding other ways to save costs. She also wrote:

The city gives away hundreds of millions of dollars in tax breaks to big developers. And for years, Chicago has played fast and loose with our school system’s finances. Tax-increment financing districts take hundreds of millions of dollars away from our schools each year. The city took more than a billion dollars from the pension system and engaged in risky mortgage swaps with big Wall Street banks. If we’re going to get serious about funding shortfalls, we should renegotiate these wasteful deals — not break promises to teachers.

This article originally appeared on the Working In These Times blog on June 20, 2011. Reprinted with permission.

About the Author: Kari Lydersen is an In These Times contributing editor, is a Chicago-based journalist whose works has appeared in The New York Times, the Washington Post, the Chicago Reader and The Progressive, among other publications. Her most recent book is Revolt on Goose Island. In 2011, she was awarded a Studs Terkel Community Media Award for her work. She can be reached at kari.lydersen@gmail.com.


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A Worldwide Revolt Against Poverty Wages

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Jonathan TasiniYesterday, I wrote about how the decline of U.S. wages has made workers here cheaper to hire than workers in India, at least in the call center industry. Today, the news hails from Asia where workers are rising up against poverty-level wages.

From the Financial Times (and, as a side observation, the FT gives far better insight on a regular basis on these trends than anything you can read in the U.S. traditional press):

Bangladeshi garment workers, who make clothes for western brands such as H&M, Gap and Marks & Spencer, greeted a recent 80 per cent pay rise by rampaging angrily through the capital Dhaka burning cars and looting shops.

For the world’s lowest- paid garment workers, the increase in the minimum wage, effective from November, takes their pay from $23 to $43 (€33, £27.50) a month. It was their first pay rise for four years, a period of soaring food and fuel prices. However, the workers were enraged that Dhaka had not agreed to the $75 a month they had demanded.

“This is not enough for the survival of workers and their families,” said Amirul Haque Amin, president of Bangladesh’s National Garment Workers’ Federation, which has about 23,000 members. “Living costs – including food, clothes, shelter and medical care – are going higher and higher.”

….Demands for better pay across Asia reflect improving job opportunities in economies that are growing faster than their western markets.

….
In Cambodia, Phnom Penh recently raised the minimum wage by 21 per cent  – from $50 a month to $61. That was below what the more activist of Cambodia’s 273 unions demanded, although a three-day, industry-wide strike did not materialise.

Vietnam recorded 200 strikes last year by workers hit by inflation of 9 per cent. In April, for example, nearly 10,000 workers walked out of a Taiwan-owned shoe factory, demanding better pay.

In Indonesia – where powerful trade unions with millions of members play a crucial role in negotiating with employers – minimum wages, set by regional authorities, have been increasing.

In 2008, Jakarta raised the local minimum wage by 10 per cent to nearly $100 a month, although wages in the country’s remoter regions are half that.
….
“There are no industrial relations,” says Mr Alam. “The whole attitude is arrogant and feudal. Owners and government think they are helping the workers. The workers are not treated like workers – they are treated like beggars.”[emphasis added]

What is going on here?

There is a thread that connects the anger coursing throughout the globe about the entire failed economic model foisted upon the world’s workers for decades. Here, people have had it with working hard for decades and seeing all that hard work–productivity has been rising for 30 years–turn into a steady stream of money into the pockets of CEOs and the richest one percent. Republicans and Democrats have supported a bankrupt economic system based on the “free market” and “free trade”, leveraged buyouts that obliterate middle-class jobs and a campaign finance system that greases a knee-jerk granting of tax cuts for business before making sure that regular people can form unions to act as a counter-weight to the rapacious nature of the market.

And what of those jobs flowing abroad? Well, the FT article shows the reality: slave labor. No surprise. Those stories have been surfacing for years–yet, despite the growing poverty around the world, we still have a bi-partisan support (including from our president) for the very so-called “free trade” policies that have bred substandard wages.

Where this leads is not easy to tell. It is easy to talk about worldwide solidarity–and a whole lot harder to make it happen, because of cultural and language differences, the massive physical distances between one slave-wage haven and another, the inability of the poorest to have enough resources to organize on a daily basis…a whole host of reasons.

But, it is clear–the people have had it. They cannot, and should not, put up with the siphoning of the world’s wealth and resources into the hands of a few.

About the Author Jonathan Tasini: is the executive director of Labor Research Association. Tasini ran for the Democratic nomination for the U.S. Senate in New York. For the past 25 years, Jonathan has been a union leader and organizer, a social activist, and a commentator and writer on work, labor and the economy. From 1990 to April 2003, he served as president of the National Writers Union (United Auto Workers Local 1981).He was the lead plaintiff in Tasini vs. The New York Times, the landmark electronic rights case that took on the corporate media’s assault on the rights of thousands of freelance authors.


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Whaddya Gonna Do?

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Okay, I have a confession to make. I’m still a big Soprano’s fan. So this week’s blog is going to combine the number one question that everyone in business needs to ask themselves with a short homage to my favorite Jersey family. Capiche?

“Whaddya Gonna Do?”

This question is the closest thing to a mantra on the Sopranos. Business turns south, someone goes after an important customer or suddenly the feds are wreaking havoc. Inevitably one of the characters shrugs, grabs a drink and blurts out, whaddya gonna do?

Unlike a certain organized crime family on TV, most of us do have plenty that we can do. But we are so mired in the fog of our jobs that we fail to see it.

Take a lousy boss. Whaddya gonna do? Well you can go boss shopping. Start looking inside and outside your company for a boss that you can trust. Yep, trust. Get creative with using conference rooms for taking calls to potential employers, using fake doctor’s visits to go for interviews and using letters from clients for references. Serve on committees that will increase your visibility, find excuses to meet with potential new bosses (example, by serving on a United Way committee) or just hang out in the executive bathroom until your top executive prospect hears nature’s call.

Take a crummy paycheck. Whaddya gonna do? Ask to meet with your boss to discuss a raise. After they give you a ton of reasons why it won’t happen, smile and ask for specific performance targets you’d need to hit to get a raise. Specific is the key. Find out what it will take, document the conversation then put all of your creativity to work to hit the target. But don’t just play inside your company. Start shopping your resume outside of it. That is the quickest way to getting a bump in pay, because your company will never pay you what you’re worth until you have a firm outside offer from another company. Never.

Take not having enough hours in a day. Whaddya gonna do? For most of us, the key to getting more done isn’t about squeezing more stuff into your already full eight or nine hour day. The key is to ensure that you’re focusing your best efforts into the areas of greatest opportunity for both you and your company. I’m a big believe in the 80-20 rule. I try to always put 80% of my best effort into my most important projects. It’s tough to do because the urgent always has a way of trumping the important, but you’ve got to resist that temptation and keep your eyes on the prize.

Take being scared of being laid off. Whaddya gonna do? People write to me all the time describing a lay off that came out of nowhere. And yes, that can happen. But more often than not there were subtle clues about what was going to happen. The company suddenly started cutting the budget, sending important projects to other departments and transferring the starts to other departments at your company. We all have to be careful about getting too comfortable and keep our eyes on what is next for our industry, our company but most of all ourselves.

Whaddya gonna do? Plenty. Because you don’t have to be stuck with the mob, you can chart your own course of action.

About the Author: Bob Rosner is a best-selling author, award-winning journalist and popular speaker. For free job and work advice, check out the award-winning workplace911.com. If you have a question for Bob, contact him via bob@workplace911.com .


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