Kickstarter Employees Vote to Unionize in a Big Step for Tech Workers

From today’s New York Times:

Employees at the crowdfunding platform Kickstarter voted on Tuesday to unionize, the first well-known technology company to take the step toward being represented by organized labor.

The decision, which was formalized by a vote count at the National Labor Relations Board, came down to a narrow margin, with 46 employees voting in favor of the move and 37 opposing it. The debate over a union — and whether such representation was appropriate for highly paid tech workers — had been a source of tension at the company for many months.

“I’m overjoyed by this result,” said Dannel Jurado, a Kickstarter senior software engineer who voted for a union. “There’s a long road ahead of us, but it’s a first step to the sustainable future in tech that I and so many others want to see.”

The pro-union vote is significant for the technology industry, where workers have become increasingly activist in recent years over issues as varied as sexual harassment and climate change. Behemoth companies such as Google and Amazon have struggled to get a handle on their employees, who have staged walkouts and demanded that their companies not work with government entities and others.

But large-scale unionization efforts have faltered. Only a group of contractors at a Google office in Pittsburgh unionized last year, and a small group of Instacart workers managed to do so this month. In the past, most unionization drives have been associated with blue-collar workers and lower-paid white-collar workers rather than white-collar tech workers, who are often paid upward of $150,000 a year.

Veena Dubal, an associate professor of employment law at the University of California, Hastings College of Law, called the Kickstarter vote “a hugely important step” that “signals to workers across the tech industry that it is both desirable and possible to build collective structures to influence wages, working conditions and even business decisions.”

Read the complete article here.

Philadelphia in works to set up agency to protect worker rights in the city

From today’s Philadelphia Inquirer:

The Philadelphia City Council unanimously approved a bill Thursday that would all but ensure the creation of a permanent city agency dedicated to enforcing the numerous progressive labor laws it has passed in recent years.

The bill — introduced by Councilmembers Helen Gym and Bobby Henon in partnership with the Kenney administration — would pose this question to voters in the April primary: Should the city create a permanent Department of Labor that would enforce city labor laws and function as a front door for all worker-related issues?

The question has to be put to voters because it requires a city charter change. Right now, the Mayor’s Office of Labor, created under the Kenney administration, provides these services, but advocates fear a future mayor with different priorities could scrap the office all together.

This effort is part of a broader push by advocates and organizers for stronger labor law enforcement in a city that’s passed some of the most progressive pro-worker legislation in the country but has historically failed to both educate workers about these laws and enforce them.

That started to change in the last year, as advocates who pushed for these laws set their sights on enforcement. Advocates won a modest increase in funding for the Mayor’s Office of Labor, which grew its budget to nearly $1.1 million this year and doubled its staff to six. The number of complaints filed by workers to the office quadrupled from 2018 to 2019 to nearly 100.

Read the complete article here.

DoorDash’s anti-worker tactics just backfired spectacularly in court

From today’s Vox News Online:

The food delivery company DoorDash made its delivery workers sign away their right to sue if a legal dispute arises between a worker and the company. Instead, disputes would be resolved by a privatized arbitration system that tends to favor corporate parties.

It’s a common tactic, often used by companies seeking to discourage workers from asserting their legal rights at all. And, if a decision handed down Monday by a federal district judge stands, the tactic backfired spectacularly for DoorDash.

Under Judge William Alsup’s order in Abernathy v. DoorDash, DoorDash must arbitrate over 5,000 individual disputes with various workers who claim that they were misclassified as independent contractors, when they should be treated as employees. It also must pay a $1,900 fee for each of these individual arbitration proceedings.

Though DoorDash might settle the various claims before it is hit with these fees, Alsup’s order means that if it doesn’t, the delivery company will face a bill of nearly $10 million before any of the individual proceedings are even resolved. Add in the cost of paying for lawyers to represent them in each proceeding, plus the amount the company will have to pay to the workers in each proceeding that it loses, and DoorDash is likely to wind up paying far more money than it would have if it hadn’t tried to strip away many of its workers’ rights.

Ordinarily, when thousands of workers at the same company all raise very similar legal claims against that same employer, those workers will join together in a class action lawsuit — a process that allows all of the disputes to be resolved in a single suit rather than in thousands of separate proceedings. But DoorDash required these delivery workers to sign away their right to bring a class action as well.

That decision also appears to have backfired.

Read the complete article here.

Congress passes bill to ease bids by workers to form unions

From today’s Minneapolis Star Tribune:

In a move that supporters said would help working families, the Democratic-controlled House has approved a bill that would make it easier for workers to form unions and bargain for higher wages, better benefits and improved working conditions.

The “Protecting the Right to Organize” or PRO Act would allow more workers to conduct organizing campaigns and would add penalties for companies that violate workers’ rights. The act would also weaken “right-to-work” laws that allow employees in more than half the states to avoid participating in or paying dues to unions that represent workers at their places of employment.

In one of its most controversial provisions, the bill would close loopholes that allow what supporters call intentional misclassification of workers as supervisors and independent contractors in order to prevent them from joining a union.

The House approved the bill, 224-194, on Thursday. The measure is unlikely to be taken up in the Republican-controlled Senate and faces a veto threat from the White House.

Even so, Democrats touted it as a major victory for worker rights and said it would help reverse a decades-long trend of declining union membership in the U.S. workforce. Less than 11% of American workers belong to a union, a statistic Democrats called disgraceful.

“Without these protections, the playing field will remain heavily stacked against workers,” said Rep. Mark Pocan, D-Wis.

The bill’s sponsor, Rep. Bobby Scott, D-Va., called labor unions one of the most powerful tools workers have to improve their standard of living. But under current law, there are “no meaningful penalties for predatory corporations that use unlawful tactics to discourage workers from organizing a union,” said Scott, who chairs the House Education & Labor Committee.

Read the complete article here.

New York Governor Lays Down Ultimatum on Gig Worker Rights

From today’s Bloomberg Law Online:

New York Gov. Andrew Cuomo (D) kicked gig worker rights out of the state’s budget discussion, instead creating a task force to study the issue. But he also provided lawmakers with an ultimatum.

If the issue isn’t resolved by May 1, the state’s labor department will be authorized to enact regulations protecting workers, Cuomo announced Jan. 21 as part of his executive budget proposal.

Policy is often negotiated alongside fiscal plans in the state’s budget process, which is kicked off by the governor. The state budget is due by March 31, before the next fiscal year begins.

One political expert says creating a task force is a way to delay a difficult decision that puts the governor between the state’s powerful unions and popular companies like Uber Technologies Inc. and Lyft Inc.

Some Albany insiders, companies, and lobbyists say the governor’s legislative proposal is vague. Several lawmakers and union leaders, however, are applauding Cuomo’s plan to further study whether many workers currently operating as independent contractors should instead be classified as employees, entitling them to benefits such as minimum wage, overtime, workers’ compensation, and the right to collectively bargain.

“We certainly are in a better place now, than we were at the end of last session,” New York State AFL-CIO President Mario Cilento said in an emailed statement. “In addition to creating a task force, the legislation would establish a framework to provide rights and protections to workers in the growing gig economy.”

Companies and business coalitions said they’re glad to have a seat at the table. “No matter the forum, we are ready to discuss solutions that provide workers with the protections they deserve while maintaining the flexibility they want and the economic growth vital to the state,” said Christina Fisher, a spokeswoman for Flexible Work for New York, a coalition of app-based technology companies, business groups, and civic organizations.

Read the complete article here.

Women’s Gains in the Work Force Conceal a Problem

From today’s New York Times:

American women have just achieved a significant milestone: They hold more payroll jobs than men. But this isn’t entirely good news for workers, whether they’re men or women.

The difference is small, but it reflects the fact that women have been doing better in the labor market compared with men. One big reason is that the occupations that are shrinking tend to be male-dominated, like manufacturing, while those that are growing remain female-dominated, like health care and education. That puts men at a disadvantage in today’s economy — but it also ensures that the female-dominated jobs remain devalued and underpaid.

“Female-dominated jobs in the working class are just not comparable to men’s jobs,” said Janette Dill,a sociologist at the University of Minnesota School of Public Health. “So yes, it’s great to see women participating at such a high level in the labor market, but it also really means continuing challenges for working-class families, because these jobs just don’t replace manufacturing jobs in terms of job quality and wages.”

Women now hold 50.04 percent of payroll jobs (which excludes people who work on farms or in households or are self-employed), according to the Labor Department’s jobs report this month. (Men are still a larger share of the labor force than women, a number that is calculated differently — it includes people who don’t have jobs but are looking for work; farm and household workers; and self-employed people.)

Reasons for the decline in work for less educated men are many. They include the rise of automation; the waning power of unions; rising incarceration rates; the factories that move overseas; and hurdles to switching jobs like having to move away or return to school. But gender norms are a major and often overlooked factor. However much politicians talk about manufacturing jobs, the United States economy has become service-dominated — and jobs helping people have typically been done by women, while jobs making things have been associated with men.

Read the complete article here.

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.

Read the complete article here.

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.