With Poor People’s Campaign, Rev. Barber evokes comparisons to MLK

From today’s Charlotte Observer:

When Democratic presidential candidates met for their final debate in Iowa, more than a hundred protesters gathered just outside on the snowy grounds of Drake University.

Their goal: to urge the candidates to debate poverty. Holding signs, they carried a coffin representing the tens of thousands of people they said die every year from its effects.

Leading them was Rev. William Barber, the North Carolina pastor who co-chairs the national Poor People’s Campaign. Coming days before the holiday honoring Martin Luther King Jr., the rally was the latest in a series of events designed to carry King’s legacy into the 21st Century.

“I believe Dr. King would be right beside us,” Barber told the Observer. “He would say nothing would be more tragic than to turn back now.”

Barber, 56, is in the middle of a 25-state tour that will culminate in June with a mass march in Washington, where thousands are expected to call for an end to poverty and inequality and for greater access to health care and education.

Barber, who was born two days after King’s historic march on Washington, frequently invokes the civil rights leader in rallies and sermons even as he himself has invited comparisons with King.

“Brother William Barber is the closest thing we have to Martin Luther King Jr. in American culture,” said Cornel West, a Harvard professor and political activist.

Read the complete article here.

Pay Is Rising Fastest for Low Earners. One Reason? Minimum Wages.

From today’s New York Times:

These days, wages in the United States are doing something extraordinary: They’re growing faster at the bottom than at the top. In fact, recent growth for workers with low wages has outpaced that for high-wage workers by the widest margin in at least 20 years.

The main story here is the long economic recovery, now entering its 11th year. For much of the early phase of this recovery, wage growth for the bottom group was weaker than for others, but it began gradually accelerating in 2014 as unemployment continued to fall. This was around the same time the labor market started tapping into people some economists had all but given up on as work force participants, such asthose who had been citing health reasons or disability for not having a job.

But there has been another factor at play: the rise in state and local minimum wages.

For the last decade, the federal minimum wage has been unchanged at $7.25 an hour. But over that period, dozens of states and localities have enacted their own minimum wages or raised existing ones. As a result, the effective U.S. minimum wage is closer to $12 an hour, most likely the highest in U.S. history even after adjusting for inflation.

And with two dozen states and four dozen localities set to raise their minimums further in 2020, the effective minimum wage will keep rising this year.

These state and local actions are affecting wage data, especially for workers at the bottomTo get a sense of this impact, Ihaveused data in the Current Population Survey to look at minimum wage workers as a group and calculate the pressure their wage gains have put on aggregate wage growth over time, controlling for compositional changes in the share of minimum wage work.

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Fashion Nova’s Secret: Underpaid Workers in Los Angeles Factories

From today’s New York Times:

Fashion Nova has perfected fast fashion for the Instagram era. The mostly online retailer leans on a vast network of celebrities, influencers, and random selfie takers who post about the brand relentlessly on social media. It is built to satisfy a very online clientele, mass-producing cheap clothes that look expensive.

“They need to buy a lot of different styles and probably only wear them a couple times so their Instagram feeds can stay fresh,” Richard Saghian, Fashion Nova’s founder, said in an interview last year.

To enable that habit, he gives them a constant stream of new options that are priced to sell. The days of $200 jeans are over, if you ask Mr. Saghian. Fashion Nova’s skintight denim goes for $24.99. And, he said, the company can get its clothes made “in less than two weeks,” often by manufacturers in Los Angeles, a short drive from the company’s headquarters.

That model hints at an ugly secret behind the brand’s runaway success: The federal Labor Department has found that many Fashion Nova garments are stitched together by a work force in the United States that is paid illegally low wages. Los Angeles is filled with factories that pay workers off the books and as little as possible, battling overseas competitors that can pay even less. Many of the people behind the sewing machines are undocumented, and unlikely to challenge their bosses.

“It has all the advantages of a sweatshop system,” said David Weil, who led the United States Labor Department’s wage and hour division from 2014 to 2017.

Every year, the department investigates allegations of wage violations at sewing contractors in Los Angeles, showing up unannounced to review payroll data, interview employees and question the owners.

In investigations conducted from 2016 through this year, the department discovered Fashion Nova clothing being made in dozens of factories that owed $3.8 million in back wages to hundreds of workers, according to internal federal documents that summarized the findings and were reviewed by The New York Times.

Read the complete article here.

NLRB Says McDonald’s Not Responsible For Franchise Treatment of Workers

From NPR News Online:

McDonald’s should not be held responsible for the labor practices of its franchisees, the National Labor Relations Board ruled on Thursday.

The federal agency, in charge of enforcing U.S. labor law, delivered the latest ruling in a years-long union case that sought to hold the fast food chain liable for the treatment of all workers at both corporate and franchise locations. The agency, also known as NLRB, directed a federal administrative law judge to approve a settlement that had earlier been reached between McDonald’s, its franchisees and the workers who had alleged labor-law violations.

The case was closely watched because it had potential implications for a vast array of companies that rely on franchising and contracting for work, such as janitorial services, trucking, construction and warehousing. The NLRB ruling is expected to face an appeal.

The long and bitter litigation began in 2015, when the Service Employees International Union accused McDonald’s and its franchisees of retaliating against hundreds of workers who supported the Fight For $15 labor movement. For example, workers alleged that they were assigned harder tasks or fewer hours after they attended union-backed protests demanding higher wages.

The government’s labor-law prosecutor at the time asked the judge, Lauren Esposito, to review the complaints and consider McDonald’s a “joint employer” of franchisees accused of violating labor laws.

But under a new administration, the NLRB lawyer last year abruptly proposed a settlement with the affected workers — days before the conclusion of the three-year trial. Esposito rejected the proposal, calling it “manifestly unreasonable” and “simply baffling.”

On Thursday, an NRLB panel overruled the judge and instructed her to approve the settlement deal.

Read the complete article here.

Airline catering workers plan protests at major US airports on Thanksgiving week

From today’s CNBC News Online:

Hundreds of airline catering workers are protesting this week at some of the largest U.S. airports to demand higher wages and better benefits during what’s expected to be a record Thanksgiving travel period.

Some of those workers, who prepare and deliver meals to airlines and are represented by the Unite Here labor union, are planning to block airport roads or stage sit-ins around ticket counters and pre-security areas on Tuesday at airports including those serving New York, Los Angeles, San Francisco, Miami and Philadelphia.

Others plan to picket and hand out pamphlets about their demands, according to the union, which represents more than 20,000 airline catering workers. Airlines for America, a trade group, expects a record 31.6 million travelers to fly on U.S. airlines during the 12 days around Thanksgiving, up nearly 4% from last year.

The protests are the latest demonstrations by emboldened workers who are demanding a bigger share of corporate profits, which have surged since the last recession more than a decade ago. Airline workers have been particularly visible this year after airlines reported disruptions they said were due to workers trying to gain leverage in contract talks. President Donald Trump signed a bill ending the longest-ever government shutdown in January, hours after a shortage of air traffic controllers disrupted flights.

Read the complete article here.

For 53 million Americans stuck in low-wage jobs, the road out is hard

From today’s Los Angeles Times:

Unemployment is hovering near a five-decade low, workforce participation is at the highest level in six years and Federal Reserve Chairman Jerome H. Powell recently called the labor market “strong.”

Yet, 44% of Americans age 18 to 64 are low-wage workers with few prospects for improving their lot, according to a Brookings Institution report.

An estimated 53 million Americans are earning low wages, according to the study. That number is more than twice the number of people in the 10 most populous U.S. cities combined, the report notes. The median wage for those workers is $10.22 an hour and their annual pay is $17,950.

Although many are benefiting from high demand for labor, the data indicated that not all new jobs are good, high-paying positions. The definition of “low-wage” differs from place to place. The authors define low-wage workers as those who earn less than two-thirds of the median wage for full-time workers, adjusted for the regional cost of living. For instance, a worker would be considered low wage in Beckley, W.Va., with earnings of $12.54 an hour or less, but in San Jose, Calif., the low wage bar rises to $20.02 an hour.

“We have the largest and longest expansion and job growth in modern history,” Marcela Escobari, coauthor of the report, said in a phone interview. That expansion “is showing up in very different ways to half of the worker population that finds itself unable to move.”

Read the complete article here.

Chicago Teachers Go On Strike, Capping Years Of Social Justice Activism

From today’s NPR News Online:

For the second time in seven years, Chicago Public Schools teachers will be on strike starting Thursday, walking out of class, they say, in the name of better schools.

Gathered on the stage of the union hall on Wednesday, the Chicago Teachers Union said its delegates were in full support of moving forward with a strike. Delegates had already authorized the walkout and set a date so it would have taken a reversal to cancel the strike.

“We have not achieved what we need to bring justice and high quality schools to the children and teachers of Chicago,” said CTU President Jesse Sharkey. “We need to have the tools we need to do the job at our schools. We need pay and benefits that will give us dignity and respect. We are on strike until we can do better.”

Altogether, more than 30,000 workers will be on the picket lines. This includes 7,500 teacher aides, custodians and security guards who members of SEIU Local 73. SEIU said Wednesday evening it had rejected CPS’ contract offer and planned to strike on Thursday along with CTU.

Officials say schools will be open, with principals and other administrators supervising any children that need a place to go. They also are telling parents they can bring their children to libraries and some community organizations.

Some 300,000 students who attend district-run schools will be impacted. Another 62,000 students who attend charter and contract schools run by private organizations will not be affected.

Read the complete article here.

After 30 days on strike, GM-UAW talks suddenly face a deadline

From today’s Detroit Free Press:

The clock is ticking for General Motors executives to reach a proposed tentative agreement with the UAW, people close to the talks said Tuesday.

The union’s move to summon its National GM Council to Detroit for a meeting Thursday morning was a pressure tactic to prompt GM leaders to reach a deal acceptable to the UAW, said three people familiar with the talks.

Talks continued Tuesday, with GM CEO Mary Barra and President Mark Reuss joining UAW President Gary Jones at the “main table” with the UAW’s lead negotiator in the talks, Terry Dittes.

That was widely seen as moving the talks toward their final phase, but no agreement had been reached Tuesday afternoon. Also present were the bargaining committee members for both sides. A person close to the talks said Barra and Reuss did not stay for discussions through the afternoon.

“Mary’s got two days to come up with a contract, then the National Council meets to decide what to do next,” said a person briefed on the negotiations late Tuesday.

For such heavyweights to show up to the main table indicates a proposed deal is likely close at hand, likely to happen late Wednesday or in the early morning hours Thursday prior to the National Council’s meeting, said one person who had been briefed on the talks.

“If they don’t have a deal, they will give us an update and let us know what the protocol is at that point,” said a UAW local leader who asked to not be named. “Product allocation is an issue GM has come late to the table on.” 

Read the complete article here.

Wage inequality is surging in California, and not just on the coast. Here’s why

From today’s Los Angeles Times:

Wage inequality has risen more in California cities than in the metropolitan areas of any other state, with seven of the nation’s 15 most unequal cities located in the Golden State.

San Jose, with its concentration of Silicon Valley technology jobs, had the largest gap of any California metro area between those at the top of the pay scale and those at the bottom. It ranked second in the nation after the suburb of Fairfield, Conn., home to wealthy New York financiers, according to a new analysis of 2015 U.S. Census data by Federal Reserve economists. San Francisco and Los Angeles also ranked high on the list.

More surprising, perhaps, is the inclusion of Bakersfield, where high-wage engineering jobs are juxtaposed with poverty-wage farm work.The heavy concentration of California metro areas is a striking turnabout from 1980, when just three figured in the top 15.

As inequality has soared across the United States, most sharply since the 1980s, it has been the focus of widespread debate and become a hot political issue. But less attention has focused on dramatic geographical differences in inequality.

“Wage inequality … has risen quite sharply in some parts of the country, while it has been much more subdued in other places,” wrote Jaison Abel and Richard Deitz, economists at the Federal Reserve Bank of New York, who titled their report, “Why Are Some Places So Much More Unequal than Others?

Large cities with dynamic economies tend to have higher wage disparities, while midsized cities with “sluggish economies” are less unequal because they attract fewer high-wage workers, the authors found.

Read the complete article here.

CA passes bill allowing college athletes to profit from endorsements

From today’s Los Angeles Times:

California became the first state to require major financial reforms in college athletics on Monday after Gov. Gavin Newsom signed into law a measure that allows players to receive endorsement deals, despite the National Collegiate Athletic Assn. calling the move unconstitutional.

Other states have proposed similar measures to pressure the NCAA, but so far only California is on a collision course with the governing body of college athletics, a billion-dollar organization that has repeatedly opposed efforts to allow players to profit off their sports.

Senate Bill 206 by Sen. Nancy Skinner (D-Berkeley) prohibits the NCAA from barring a university from competition if its athletes are compensated for the use of their name, image or likeness beginning Jan. 1, 2023. The University of California system, California State University schools, Stanford and USC all opposed the bill, saying they feared it would increase costs to ensure compliance with the law and lead to fines or even expulsion from the NCAA.

Newsom said university presidents and athletic boosters contacted him and urged him to veto the bill but that he felt strongly the state needed to address the racial, gender and economic injustices ingrained in college athletics.

“I have deep reverence, deep respect for the NCAA and college athletics,” Newsom said Monday. “I just think the system has been perverted, and this is fundamentally about rebalancing things. It’s about equity, it’s about fairness, and it’s about time.”

Read the complete article here.