In parts of America, Department of Labor hasn’t updated “prevailing wage” for taxpayer-funded work in decades

From Bloomberg News Network:

Thanks to a web of loopholes and limits, the federal government has been green-lighting hourly pay of just $7.25 for some construction workers laboring on taxpayer-funded projects, despite decades-old laws that promise them the “prevailing wage.”

Over the past year, the U.S. Department of Labor has formally given approval for contractors to pay $7.25 for specific government-funded projects in six Texas counties, according to letters reviewed by Bloomberg. Those counties are among dozens around the nation where the government-calculated prevailing wage listed for certain work—such as by some carpenters in North Carolina, bulldozer operators in Kansas and cement masons in Nebraska—is just the minimum wage.

That’s in part because, according to publicly available data from the Labor Department’s Wage and Hour Division, the agency is relying on wage survey data in more than 50 jurisdictions that’s from the 1980s or earlier. Experts said that’s a far cry from what Congress intended when, starting with the Depression-era Davis Bacon Act, it passed a series of laws meant to ensure that private companies contracted for government-backed projects pay their workers at least in the vicinity of what others get for the same work in the same geographic area.

In an emailed statement, the Labor Department didn’t address whether the decades-old data is a problem.

“The Wage and Hour Division carefully plans where to survey on an annual basis to ensure that prevailing wage rates reflect the reality of construction pay practices in a locality. The division identifies potential survey areas based on a number of criteria, including where available data on active construction projects in an area reveal changes in local pay practices such that a survey is necessary,” the department said.

Because government contracts are often required to go to the “lowest responsible bidder,” supporters say prevailing wage rules prevent a “race to the bottom” in which exploitative companies who pay workers less outbid safer, higher-quality firms, and in turn drive down industry standards to pocket more taxpayer dollars. Opponents of prevailing wage rules counter that they’re intrusive mandates that waste money, inflating construction costs in order to help unionized firms beat non-union competitors.

In recent years, the opposition—largely Republicans and industry groups—scored a series of wins, successfully pressing state governments in Arkansas, Indiana, Kentucky and West Virginia to repeal their own “little Davis Bacon” rules. By contrast, the federal statutes remain in place, despite the efforts of Representative Steve King, Republican of Iowa, who said last year  that “no one can claim to be a fiscal conservative if they think the federal government needs to inflate the cost of wages.”

Read the complete article here.

Massive UC workers’ strike disrupts dining, classes and medical services

From today’s Los Angeles Times:

A massive labor strike across the University of California on Monday forced medical centers to reschedule more than 12,000 surgeries, cancer treatments and appointments, and campuses to cancel some classes and limit dining services.

More than 20,000 members of UC’s largest employee union, the American Federation of State, County and Municipal Employees Local 3299, walked off their jobs on the first day of a three-day strike. They include custodians, gardeners, cooks, truck drivers, lab technicians and nurse aides.

Two altercations involving protesters and people driving near the rallies were reported at UCLA and UC Santa Cruz. At UCLA, police took a man into custody Monday after he drove his vehicle into a crowd, hitting three staff members. They were treated for minor injuries at the scene and released, said Lt. Kevin Kilgore of the UCLA Police Department.

The system’s 10 campuses remained open, largely operating on regular schedules, and protests were peaceful and even festive.

At UCLA, workers marched through campus in green union shirts that said “We run UC” and held signs calling for equality, respect and more staff. Some brought children and walked dogs. Drivers honked in solidarity. Hundreds of workers rallied in front of the Ronald Reagan UCLA Medical Center, taking taco breaks under green balloons.

Oscar Rubio, a UCLA food services worker, said that staffing at some dining hall stations has been cut from five workers to three, leading to more injuries for those who remain.

Top UC officials “make more money … while we suffer,” Rubio said. “We’re not asking to make like they make. We’re asking to support us enough to pay our rent.”

Read the complete article here.

The Case for a Federal Jobs Guarantee

From the New York Times “Opinion” Section by Eric Loomis:

Employment numbers may look solid now, but economists, physicists and industrial engineers all say that automation will, in the not-so-distant future, drive higher unemployment. The Columbus Dispatch recently calculated that in Ohio, out of total state employment of about 5.5 million workers, 2.5 million jobs are at risk of automation.

How do we prepare for such disruption and the future of work? We might revisit an idea from the 1970s: a federal guarantee of employment. In recent weeks, three Democratic senators (and likely presidential contenders) — Kirsten Gillibrand of New York, Cory Booker of New Jersey and Bernie Sanders of Vermont — have either expressed their approval of the idea or unveiled initial ideas about how an updated version could work.

They are building on the legacy of the Humphrey-Hawkins Act, introduced in the 1970s by Senator Hubert Humphrey, Democrat of Minnesota, and Representative Augustus Hawkins, Democrat of California. In addition to the guarantee of employment, their initial bill allowed citizens to sue the government if they could not find a job.

Resurrecting Humphrey-Hawkins can help pre-empt a technology crisis and even future labor dislocation from globalization. In the original Humphrey-Hawkins bill — not the watered-down version that ultimately passed in 1978 — the president would submit an annual plan to Congress to achieve full employment, and local committees would coordinate job needs in their communities. The bill would have spurred private-sector job creation and a New Deal-style federal job creation program. Private employment would limit government investment, while federally mandated wage and price controls would fight inflation.

The final bill fell far short of this. Unions stripped out the wage and price controls in exchange for their support and put a priority on negotiating better contracts for their members over the fate of the nation’s poor. The Carter administration fretted about the potential impact on inflation from a bill without those controls. President Jimmy Carter never truly supported it, and the bill that passed committed the nation to ending inflation more than to full employment. Since then, the idea of full employment has largely disappeared from the American political system.

The arguments against Humphrey-Hawkins in 1978 are largely irrelevant today. After decades of low inflation, wage and price controls are unlikely to be problems. Mr. Booker’s pilot plan to test these ideas in 15 areas of the country builds on the Great Society belief in community control over federal resources.

Read the complete article here.

Local: Jobs and work support could curtail LA’s stubborn homeless crisis

From today’s LA Times:

Providing jobs and other aid to Los Angeles County residents soon after they land in the streets could help prevent 2,600 to 5,200 people a year from falling into persistent homelessness, according to a new study from a liberal think tank.

The “Escape Routes” study from the nonprofit Economic Roundtable zeroes in on a key dilemma in Los Angeles’ homelessness crisis: Even as officials have moved 33,000 homeless people into permanent housing since 2013 and launched a $1.2-billion construction program, high rents, job loss and medical crises continue to push people out of their homes.

Without early intervention, thousands of these people will become mired in chronic homelessness, deepening the region’s stubborn problem, the study found.

“Housing alone is not enough to end homelessness. The steady flow of new people into chronic homelessness keeps moving the goalposts back,” Dan Flaming, president of Economic Roundtable, said in a statement.

The researchers combined 26 data sources — including county healthcare and social services records, the U.S. Census and homeless counts and demographic surveys — to sketch what experts called a novel portrait of people at risk of falling into chronic homelessness, as well as recommendations of how to help them.

For several years running, Los Angeles has topped the nation in chronically homeless people, with 16,576 in the 2017 count, the most recent available.

Dennis Culhane, a University of Pennsylvania professor and a leading researcher of homeless demographics, said one of the most important findings was that 150,000 people in L.A. County are homeless in a year, although many resolve their crises on their own.

Because more than three-quarters of L.A.’s homeless people live outdoors in camps or vehicles, the official homeless count — a three-day snapshot of people living in the streets and shelters — has always been suspect, Culhane said.

The study says the number of people languishing in homelessness can be reduced, but not without a big investment. Many homeless people are eager to work, particularly those with children, but they need childcare, transportation, temporary housing, training and in some cases government-funded jobs to bring them into the work force, study said.

Read the complete article here.

Teachers’ strikes: meet the leaders of the movement marching across America

From today’s The Guardian:

When teachers in West Virginia went on strike in February, there was little indication that a swath of other states would follow suit.

But that action in the Appalachian state, which resulted in teachers winning a 5% pay rise, has spurred on educators in Oklahoma, Kentucky and Arizona.

Teachers in Oklahoma have been on strike since 2 April, while school districts have also walked out in Kentucky. In Arizona, teachers are demanding a 20% pay rise and could go on strike at the end of April.

In some states the protests are being driven from the bottom up, rather than by unions, as teachers and school districts take matters into their own hands.

Here are some of the leaders of the teachers’ strike movement.

Cindy Gaete is a 25-year-old teacher at Marshall elementary school in Tulsa, Oklahoma. The daughter of Chilean immigrants, she is currently the only Spanish speaker in her school, which is nearly a third Latino.

She says it is frustrating that in addition to her teaching duties that the lack of Spanish speakers means that any time the schools needs to communicate with parents that she has to serve as translator.

“The first thing I told my principal when I got hired is that if we are a third Latino, there should not be just one Hispanic teacher in your school,” said Gaete.

Inspired to fix her school, she helped lead a 110-mile March for Education that arrived in Tulsa from Oklahoma City.

As teachers are expected to end their strike this week, she says that it’s important for teachers like her to run for office to keep the momentum. On Saturday, Gaete decided to lead by example and file her papers to run for state representative in Oklahoma 78th house district.

“Today I start day one of my campaign for house district 78,” said Gaete in announcing her bid. “For my students. For my community. Because all students deserve an equitable educational experience, regardless of race, socio-economic status and gender.”

Read the complete article here.

Tariffs bad news for American economy, including workers and consumers

From today’s The Hill:

There’s never a good time for tariffs. American workers and consumers will pay dearly for the Trump administration’s short-sighted action to protect an industry that shows no signs of needing any protection—the market values of the five largest steel companies have more than doubled over the past five years. Yet with a major infrastructure spending bill set to come through Congress over the next year, Trump’s tariffs are bad policy with even worse timing.

While a small amount of people will benefit from the proposed tariffs, many more will be harmed. The American steel industry employs roughly 140,000 workers, but industries that rely on steel to create their products—the ones who will suffer directly under the tariffs—employ 6.5 million workers. A recent study by the Trade Partnership found that the direct cost of tariffs on employment would be 18 jobs lost for every one created. On net, 470,000 Americans could lose their jobs.

The Trade Partnership’s study fits with the lessons of recent history. In 2002, President Bush instituted protective tariffs on foreign steel imports. After just a year in which steel prices rose by up to 50 percent, steel production was insufficient to meet demand, 200,000 Americans lost their jobs, and the tariff was dropped. A mere fifteen years later, these lessons have already been forgotten.

Nor will other countries sit idly by as Trump restricts trade. Well over 10 million Americans’ jobs are supported by exports—jobs which would be at risk in the case of a trade war. Already, the European Union has prepared a ten-page hit list of potential targets of retaliatory tariffs should Trump’s steel and aluminum tariffs go into effect.

American consumers will be harmed as well. A combination of new steel tariffs and lumber tariffs imposed last year mean that the cost of new homes is likely to continue rising—nearly half of steel imports go towards construction. Other American staples such as cars and canned beer are also set to see price spikes resulting directly from tariffs.

Read the complete article here.

The Tipping Equation: At restaurants in America, servers calculate how far is too far, weighing harassment against wages

From the New York Times:

The balancing act plays out every day in restaurants across America: Servers who rely on tips decide where to draw the line when a customer goes too far.

They ignore comments about their bodies, laugh off proposals for dates and deflect behavior that makes them uncomfortable or angry — all in pursuit of the $2 or $20 tip that will help buy groceries or pay the rent.

There was the young server at a burger joint in Georgia, Emmallie Heard, whose customer held her tip money in his hand and said, “So you gonna give me your number?” She wrote it down, but changed one of the digits.

There was the waitress in Portland, Ore., Whitney Edmunds, who swallowed her anger when a man patted his lap and beckoned her to sit, saying, “I’m a great tipper.”

And at a steakhouse in Gonzales, La., Jaime Brittain stammered and walked away when a group of men offered a $30 tip if she’d answer a question about her pubic hair. She returned and provided a “snappy answer” that earned her the tip, but acknowledges having mixed feelings about the episode.

“Literally every time it happens, I will have this inner monologue with myself: ‘Is this worth saying something, or is it not?’” said Ashley Maina-Lowe, a longtime server and bartender in Tucson. “Most of the time I say, ‘No, it’s not worth it.’”

Read the complete article here.

Disney Theme Park Workers Are Picketing for Better Pay as Profits Soar

From Fortune Magazine:

Walt Disney Co. is finding itself in heated talks with union workers over pay and other issues as profits at the company’s theme-park division soar.

Employees have picketed outside Walt Disney World and complained in writing about being shut out of Disneyland for the annual holiday party. Last week, unions representing park workers in Florida and California filed complaints with the National Labor Relations Board over Disney’s decision to withhold a special $1,000 tax-reform bonus while contracts talks are underway, saying the company discriminated against those staffers.

“Here is a company that has the best movies about how we’ve got to help one another and how racism is wrong and how we’ve got to take care of our toys,” said Glynndana Shevlin, a 58-year-old who’s worked for almost 30 years at Disney. She makes $15.70 an hour serving wine and is among those waiting for her bonus. “I don’t feel like they take care of me when it comes to my own life.”

Read the complete article here.

People Want 3 Things from Work, But Most Firms Are Built Around Only One

From today’s Harvard Business Review:

Strike up a conversation about work values, and it won’t be long before someone brings up a pyramid — a famous psychologist’s best-known theory. Abraham Maslow’s big idea was that we all have a hierarchy of needs: once our basic physiological and safety needs are fulfilled, we seek love and belongingness, then self-esteem and prestige, and finally self-actualization. But that pyramid was built more than half a century ago, and psychologists have recently concluded that it’s in need of renovation.

When you review the evidence from the past few decades of social science, it’s hard to argue with Maslow’s starting point. If your basic needs aren’t met, it’s hard to focus on anything else. If you have a job that doesn’t pay enough, and you’re up all night worrying about survival, chances are you won’t spend much time dwelling on self-actualization.

But Maslow built his pyramid at the dawn of the human relations movement, when so many workplaces in the manufacturing economy didn’t have basic physiological and safety needs covered. Today more companies are operating in knowledge and service economies. They’re not just fulfilling basic needs; they’re aiming to fulfill every need, providing conveniences like meals and gyms, and competing to be the best places to work (from 1984 through 2011, those that won outperformed their peers on stock returns by 2.3% to 3.8% per year). In those environments, survival isn’t in question.

And once you get past that layer of the pyramid, the rest of it falls apart. People don’t need to be loved before they strive for prestige and achievement. And they don’t wait for those needs to be fulfilled before pursuing personal growth and self-expression.

If Maslow were designing his pyramid from scratch today to explain what motivates people at work, beyond the basics, what would it look like? That’s a question we set out to answer at Facebook, in collaboration with our people analytics team.

We survey our workforce twice a year, asking what employees value most. After examining hundreds of thousands of answers over and over again, we identified three big buckets of motivators: career, community, and cause.

Career is about work: having a job that provides autonomy, allows you to use your strengths, and promotes your learning and development. It’s at the heart of intrinsic motivation.

Community is about people: feeling respected, cared about, and recognized by others. It drives our sense of connection and belongingness.

Cause is about purpose: feeling that you make a meaningful impact, identifying with the organization’s mission, and believing that it does some good in the world. It’s a source of pride.

These three buckets make up what’s called the psychological contract – the unwritten expectations and obligations between employees and employers. When that contract is fulfilled, people bring their whole selves to work. But when it’s breached, people become less satisfied and committed. They contribute less. They perform worse.

Read the complete article here.

Market Update: Why Rising Wages Are Scaring the Hell Out of Stock Investors

From today’s Slate Magazine:

On Friday, the U.S. Department of Labor released a strong jobs report showing wages rising at their fastest rate since the Great Recession. Then, the stock market promptly began to plummet. The Dow Jones fell an amusingly on-the-nose 666 points—its worst day since the U.K.’s Brexit surprise. Global markets subsequently took a beating, and U.S. equities are still sliding as I write this today.

Why is good news for workers turning into bad news for shareholders? The answer is a useful illustration of why the stock market is often a poor guide to the overall health of the economy.

Right now, traders seem to be worried that if wages rise too fast, it will cause the Federal Reserve to hike interest rates in order to head off inflation down the road. When, earlier this year, the central bank suggested that it would raise rates, much of the market was skeptical, in part because inflation has been so subdued for so long. But faster pay gains for workers make it more likely the Fed will follow through, both because rising wages are a sign that the whole economy is heating up and because employers will eventually have to raise prices to keep up with the cost of labor.

Read the complete article here.