Experts warn GM strike not likely to be resolved anytime soon

From NBC News Online:

On this General Motors and the United Auto Workers agree — the strike that sent 50,000 workers out on the picket lines Monday is not likely to be over anytime soon.

Both sides are talking, but both sides are bracing for a long and costly fight as workers dig in on their fight for better wages, health care benefits and job security, union representatives and auto industry experts said.

“It will go on as long as it’s going to take to achieve our bargaining goals,” Chuck Browning, the UAW’s Region 1A Director, told MSNBC. “The bottom line is this company has been extremely profitable for a long period of time. Those profits have been made off the sweat and the hard work of our members, and our members want a fair agreement.”

Erik Gordon, a business professor at the University of Michigan and an auto industry maven, said the leadership of the UAW needs to take a stand against GM not just for the rank and file — but for its own survival.

UAW President Gary Jones and other top union officials are currently under investigation by federal authorities for allegedly embezzling member dues and blowing thousands of dollars on everything from fancy vacations and golf equipment to $400 bottles of Louis Roederer Cristal Champagne.

“I think the union leadership wanted a strike because they’re under attack, and when you feel like you could be losing your grip on power the age-old tactic is to go to war,” Gordon said.

And because they need to be seen as taking a hard line against GM management, union negotiators won’t seek a swift solution even though rank-and-file workers will start feeling the financial pain almost immediately.

Read the complete article here.

Opinion: You Call It the Gig Economy, but California Calls It “Feudalism”

From today’s New York Times:

Labor leaders cheered in the balcony and lawmakers embraced on the floor of the California Senate on Tuesday as it passed a landmark measure that defines employees, a move that could increase wages and benefits for hundreds of thousands of struggling workers.

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But the bill is as much a starting point as an endgame: It will drive a national debate over how to reshape labor laws fashioned in the industrial era of the 1930s to fit a 21st-century service and knowledge economy.

With the measure, which Gov. Gavin Newsom says he will sign, California will lead in a shift that will likely redefine the roles of governments, unions and worker organizations. Just as federal labor laws were promulgated to help the country recover from the Depression, the imperative to extend basic guarantees like a minimum wage stems from the staggering income inequality in California, the state with the highest poverty rate in the country.

The new paradigms will need to fit not the relatively stable industrial work force of the last century but a gig economy in which workers are increasingly likely to hold multiple jobs or report to no workplace at all. California lawmakers took a major step in constructing the foundation of such a model with the new measure, which presumes workers are employees, entitled to all concomitant protections and benefits, unless they meet strict criteria as truly independent contractors.

Read the complete article here.

Sweeping bill rewriting California employment law sent to Gov. Newsom

From today’s Los Angeles Times:

California lawmakers rewrote the rules of employment across a wide swath of industries Wednesday in legislation that could grant hundreds of thousands of workers new job benefits and pay guarantees.

After vigorous debates over what occupations should be exempted, Assembly Bill 5, which curbs businesses’ use of independent contractors, gained final approval in the state Senate and the Assembly and was sent to Gov. Gavin Newsom, who has pledged his support.

The 6,700-word bill is one of the most controversial of the year. It could upend the relationship between workers and bosses across businesses as varied as ride-hailing tech giantsconstruction, healthcare, truckingjanitorial servicesnail salonsadult entertainment, commercial fishing and newspapers.

The message of the legislation, said its author, Assemblywoman Lorena Gonzalez (D-San Diego), is “we will not in good conscience allow free-riding businesses to continue to pass their own business costs on to taxpayers and workers. It’s our job to look out for working men and women, not Wall Street and their get-rich-quick IPOs.”

Contractors, including many in multibillion-dollar technology companies, are not covered by laws guaranteeing a minimum wage, overtime pay, sick leave, family leave, unemployment and disability insurance, workers’ compensation and protection against discrimination or sexual harassment. Nor do businesses pay into Social Security or Medicare for contractors.

After months of lobbying by the California Chamber of Commerce and a score of trade associations, AB 5 exempted a host of occupations — but not platform-based gig giants Uber, Lyft, DoorDash, Postmates and others that mounted a powerful push to avoid reclassifying their workers as employees with labor law protections.

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A California bill that would ban forced arbitration heads to Gov. Newsom

From today’s Los Angeles Times:

When companies in California tell job candidates they have to give up their right to sue the company for most disputes, a bill headed to Gov. Gavin Newsom’s desk would let the candidates decline without fear of losing their job offer.

The bill is the latest effort by state governments to limit private companies from imposing forced arbitration agreements, whose surge in popularity has contributed to the difficulty of workers suing their bosses for sexual harassment in the era of #MeToo.

Federal law and some U.S. Supreme Court decisions do not let state governments ban these arbitration agreements. Supporters argue that the bill in California would not ban arbitration agreements, but make them optional: Employees could sign them, but they may not be punished for declining to. The bill would not affect existing arbitration agreements and would apply only to people hired after Jan. 1, 2020.

Still, Republicans and the state’s business groups said the bill is illegal and would probably be challenged in court. The state Senate voted Thursday to approve the bill.

The Economic Policy Institute says more than 67% of all employers in California require workers to sign these arbitration agreements. Companies like these agreements because arbitration costs less than going to court and moves faster. Labor groups argue that arbitration puts employees at a disadvantage because the employees don’t have an attorney and are subject to the ruling of an arbitrator who is often selected and paid for by the company.

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The American Economy Is Creating a National Identity Crisis for Workers

From today’s New York Times:

Europeans often describe the United States as a great place to buy stuff but a terrible place to work. They understand the appeal of our plentiful and affordable consumer goods, but otherwise they just don’t get it: the lack of real vacation, the sending of emails after business hours, the general insensitivity to work-life balance.

That may be just a casual observation, but it identifies something deep and problematic about the economy that the United States has built over the past 40 years.

Since the 1980s, American economic policy has insisted on the central importance of two things: cheaper prices for consumers and maximum returns for corporate shareholders. There is some logic to this: We all buy things, after all, and more than 50 percent of Americans own at least some stock.

But these priorities also generate an internal conflict, for they neglect, repress and even enslave our other selves: our identities as employees, producers, family members, citizens. And in recent years — as jobs become increasingly unpleasant and unstable, as smaller towns and regional economies are gutted, as essential industries like the pharmaceutical and telecommunications sectors engage in outlandish profiteering, and above all, as economic inequality becomes the trademark of our nation — the conflict seems to have reached a breaking point.

Read the complete article here.

State of the Unions: What happened to America’s labor movement?

From today’s New Yorker Magazine:

Do you have rights at work? Franklin Delano Roosevelt thought you did. In 1936, while trying to haul America’s economy out of the bog that the free market had driven it into, Roosevelt argued that workers needed to have a say, declaring it unjust that

a small group had concentrated into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor—other people’s lives. For too many of us throughout the land, life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness.

For Roosevelt, a system in which bosses could unilaterally decide “the hours men and women worked, the wages they received, the conditions of their labor” amounted to “dictatorship.” He hoped that the New Deal would bring workers and managers together in a new form of workplace governance.

New Dealers drew on an idea known as industrial democracy, developed, in the late nineteenth century, by English socialist thinkers who saw workplace rights as analogous to civil rights such as due process and the freedoms of speech and assembly. Senator Robert Wagner, who wrote the National Labor Relations Act of 1935—also known as the Wagner Act—made the point explicitly: “Democracy in industry means fair participation by those who work in the decisions vitally affecting their lives and livelihood.” In their efforts to civilize the workplace, however, Roosevelt and his allies didn’t set up a new institution for workers to speak through. They relied on an existing one: the union.

Whenever the rate of unionization in America has risen in the past hundred years, the top one per cent’s portion of the national income has tended to shrink. After Roosevelt signed the Wagner Act and other pro-union legislation, a generation of workers shared deeply in the nation’s prosperity. Real wages doubled in the two decades following the Second World War, and, by 1959, Vice-President Richard Nixon was able to boast to Nikita Khrushchev that “the United States comes closest to the ideal of prosperity for all in a classless society.”

America’s unions and workers haven’t been faring quite as well lately. Where labor is concerned, recent decades strongly resemble the run-up to the Great Depression. Both periods were marked by extreme concentrations of personal wealth and corporate power. In both, the value created by workers decoupled from the pay they received: during the nineteen-twenties, productivity grew forty-three per cent while wages stagnated; between 1973 and 2016, productivity grew six times faster than compensation. And unions were in decline: between 1920 and 1930, the proportion of union members in the labor force dropped from 12.2 per cent to 7.5 per cent, and, between 1954 and 2018, it fell from thirty-five per cent to 10.5 per cent. In “Beaten Down, Worked Up” (Knopf), a compact, pointed new account of unions in America, Steven Greenhouse, a longtime labor reporter for the Times, writes that “the share of national income going to business profits has climbed to its highest level since World War II, while workers’ share of income (employee compensation, including benefits) has slid to its lowest level since the 1940s.”

Read the complete article here.

Yes, America Is Rigged Against Workers

From today’s New York Times:

The United States is the only advanced industrial nation that doesn’t have national laws guaranteeing paid maternity leave. It is also the only advanced economy that doesn’t guarantee workers any vacation, paid or unpaid, and the only highly developedcountry (other than South Korea) that doesn’t guarantee paid sick days. In contrast, the European Union’s 28 nations guarantee workers at least four weeks’ paid vacation.

Among the three dozen industrial countries in the Organization for Economic Cooperation and Development, the United States has the lowest minimum wage as a percentage of the median wage — just 34 percent of the typical wage, compared with 62 percent in France and 54 percent in Britain. It also has the second-highest percentage of low-wage workers among that group, exceeded only by Latvia.

All this means the United States suffers from what I call “anti-worker exceptionalism.”

Academics debate why American workers are in many ways worse off than their counterparts elsewhere, but there is overriding agreement on one reason: Labor unions are weaker in the United States than in other industrial nations. Just one in 16 private-sector American workers is in a union, largely because corporations are so adept and aggressive at beating back unionization. In no other industrial nation do corporations fight so hard to keep out unions.

The consequences are enormous, not only for wages and income inequality, but also for our politics and policymaking and for the many Americans who are mistreated at work.

Read the complete article here.

U.S. Women Won, Men Lost, and Equal Pay Fight Tied Them Together Again

From today’s New York Times:

For American soccer fans, the juxtaposition was hard to ignore: the United States women’s team winning a record fourth World Cup championship in France, its men’s counterpart falling to its bitter rival Mexico hours later in a regional championship in Chicago.

The two results Sunday were not a mere collision of games: they also highlighted a contentious battle about pay equality featuring the men’s teams and women’s teams, the different media and financial ecosystems in which they compete, and the often unequal rewards for success for male and female athletes. All of it was brought to the fore again by the women’s team’s latest world championship, and by the chants of “Equal Pay!” that serenaded the players after they won.

In recent years, that fight for pay equality has been the women’s team’s calling card. The players contend they are paid less by the United States Soccer Federation than the men — sometimes tens of thousands of dollars or more for top players in a given year — and that the situation has persisted for years even as the women’s team has collected more trophies and begun to produce more revenue than the men. U.S. Soccer has welcomed the team’s success — Sunday’s title was the team’s second in a row — even as it has challenged the players’ math, arguing that the situation is complicated by a compensation structure negotiated by each team that pays the men and women differently.

But the women’s players, who include some of the most prominent female athletes in the world, have pressed their argument in interviews and on social media and, most recently, in a gender discrimination federal court. On Sunday, bathing in the crowd’s adoration and set to cash in on bonuses of more than $250,000 each, one of their captains turned the screws again.

Read the complete article here.

Opinion: Should women’s soccer players be paid as much as men?

From today’s Washington Post:

The tipping point may have been the sixth goal. Or the seventh. Or the 13th, which turned out to be the last goal scored in the U.S. women’s national team’s handy defeat of Thailand in their first World Cup game.

Whichever goal it was that fans thought should have been the last for ecstatic celebration by the likes of Megan Rapinoe and Alex Morgan on Tuesday, the debate over the players’ sliding, kicking and group hugging drew attention to another issue: the 38 cents on the dollar that the women are paid compared to the men’s team.

On International Women’s Day in March, all 28 members of the women’s team filed a class-action gender discrimination lawsuit against the U.S. Soccer Federation, alleging they do the same job as the men’s team in exchange for lower wages and inferior working conditions. The men’s national team has never won a world title and did not qualify for last year’s World Cup.

The women have been fighting for fair pay for years. Five of them filed a wage-discrimination complaint in 2016 with the Equal Employment Opportunity Commission, the federal agency that enforces civil-rights laws in the workplace. Some of them then made the rounds on major television networks to plead their case.

Read the complete article here.

Walmart CEO to shareholders: America’s minimum wage is ‘too low’

From today’s CNN News Online:

Walmart CEO Doug McMillon thinks the federal minimum wage is “too low.” Now the head of the country’s largest private employer is calling on Congress to raise it beyond $7.25 an hour.

“The federal minimum wage is lagging behind,” Doug McMillon said at Walmart’s annual shareholder meeting in Bentonville, Arkansas on Wednesday.

Congress has not raised the minimum wage since 2009, but McMillon’s surprise comments may give lawmakers an incentive to act. McMillon’s call may also ease pressure on Walmart.Senator and presidential candidate Bernie Sanders, along with workers’ rights groups, have called on Walmart to raise its wages above the company’s current $11-an-hour minimum.

McMillon said “it’s time for Congress to put a thoughtful plan in place” to increase wages. It was the first time he has pushed Congress to raise pay nationwide, according to the company.

Any plan to increase the minimum wage, however, should take into account cost of living differences around the country “to avoid unintended consequences,” McMillon said. He also noted that a hike may need to be phased in over time.

McMillon defended Walmart’s moves to raise wages, expand benefits and train its 1.5 million US workers in recent years. The company has steadily been raising its minimum wage, boosting it to $11 an hour more than a year ago. That’s up 50% in the last four years, McMillon said.

McMillon added that Walmart pays more than $11 in some markets to “recruit and retain the talent we need to run a good business.”In a hotel ballroom near Walmart’s corporate headquarters in Bentonville, Sanders pressed the world’s largest retailer to increase its wages and called out McMillon for his nearly $24 million in total pay last year. Sanders also introduced a shareholder resolution that would put hourly workers on Walmart’s board of directors. The resolution was voted down on Wednesday.

Read the complete article here.