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.

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.

Read the complete article here.

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.

Read the complete article here.

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.