Wages Archives - Talk Poverty https://talkpoverty.org/tag/wages/ Real People. Real Stories. Real Solutions. Fri, 10 Jul 2020 14:42:33 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png Wages Archives - Talk Poverty https://talkpoverty.org/tag/wages/ 32 32 A Secret Spreadsheet Shows There Are No Raises In Coffee https://talkpoverty.org/2020/02/11/coffee-pay-transparency-spreadsheet/ Tue, 11 Feb 2020 17:25:11 +0000 https://talkpoverty.org/?p=28383 In early October of 2019, a Google spreadsheet circulated through the Philadelphia coffee community. Baristas could anonymously report their wages and compare what they were making with their colleagues. Since then, the spreadsheet has become a powerful tool, making information that is often difficult to track accessible, and it has allowed baristas to advocate for higher wages. The spreadsheet, however, unexpectedly uncovered another problem: there’s not a lot of upward mobility in coffee.

On the spreadsheet, managers and shift leads made the same amount as new baristas. Some entries showed that many baristas worked for companies for years and still made the same amount as those just starting in their careers; the average wage of hourly employees hovered just above $10 an hour, regardless of their role. Over 200 baristas entered their wages into the spreadsheet, which was first reported on by the Philadelphia Inquirer and has inspired similar lists across the nation. Although the spreadsheet isn’t wholly scientific — information, like average tips, benefits, and if they receive federal aid, is self-reported — it does call into question if there’s a correlation between how much experience and knowledge a person has and their ability to move up in their careers and make more money. And in the coffee world, despite the fact that jokes about getting a “real job” run prevalent, a considerable amount of skill, technique, and practice are required just to make a beverage properly, let alone do it well.

Service work has the potential to equalize. There aren’t a lot of jobs where almost everyone starts at the bottom, and the low barrier to entry means anyone can work their way up. Upward mobility can seem really clear in these types of roles — barista to shift lead to… — but where do these roles lead? If you’re making the same amount of money you were ten years ago, or if accepting a leadership position means you make less money because you lose tips, does the idea of upward mobility actually exist?

“I had been working in various capacities on the cafe side of things for nearly ten years when an opportunity to become a roaster came my way,” said Trevor Szewczyk, a roaster based in Philadelphia. He was working in Oakland when he started exploring positions outside of the cafe. “At the time, I was pretty ready to do something else, as it felt like I had been bumping my head on the ceiling of cafe management in the Bay Area.” He balanced two realities: a barista job that pays a lower hourly wage but collects tips at the end of the day, or a slightly higher wage without tips in a management position, which is a pretty common reality for most baristas.

After oscillating between both options, he decided to pursue a different coffee journey.

Szewczyk interviewed for an open position with a coffee company just outside of Oakland. He said the initial interview went well, and he expected to get an offer that was at least comparable to what he was making in his last position. “As I had been the shift lead for the cafe I was leaving at the time, I was making about $25 an hour — a base wage of $14 averaging $10 an hour in tips. So when the offer letter came I was a little taken aback that I was being offered $17 an hour.”

The position — an associate roaster for a local but large coffee company with multiple locations and wholesale accounts — seemed like a step up. However, Szewczyk never made close to the amount he was making as a shift lead, even though he was learning new skills. After a year and a half with the company, Szewczyk’s wage was bumped up to $18.50, but never matched what he was making at the cafe.

The promise of a career is what drives many to accept positions that, given a closer look, don’t actually deliver on what they promise: a stable life in their chosen field. And often, that means taking jobs that are underwhelming and financially not viable to escape the perceived bottom of the field.

“There have been a few instances where I have really been underwhelmed by promotion promises — the most recent was leaving my management role to go over to a different cafe where I was hired to do beverage development,” says Oodie Taliaferro, a barista working in Austin, Texas. “In that move I was also promised that I’d start at a higher rate than their starting rate…and after it was all said and done I started at the company’s minimum and my non-tipped hours in research and development were just that — full shifts with no tips and making only $10 an hour.”

Taliaferro left that job and did what a lot of baristas do after being let down by seemingly better job: they go back to being a barista. For many baristas attempting to “move up,” barista work often ends up being the best balance between responsibility and wages. Most management and behind-the-scenes jobs pay nominally more than a barista wage, and without tips, jobs with more responsibility are often not worth it. However, that means that there’s nowhere to go when you want to move further in your career.

Essentially, you’re stuck.

Mika Turberville is right in the middle of navigating that messy place — moving from a job that sounded like a step up in their career to working back on the floor.

“I initially took this job because I was working as an intermediate manager at a cafe and had been for several years with no prospects of upward mobility,” they said, even moving from Austin to New York to pursue a new opportunity within the same company. Turberville had ten years of experience, and when they landed the job, was surprised to learn that although their wages were technically higher, they didn’t cover the added cost of living in a city with higher expenses, let alone the fact that their position was technically a promotion.

“My pay as an intermediary manger in Austin was $13.50 an hour with tips, which is almost twice the minimum wage for that area…In New York, I used my savings to move for this job, they paid me $19 an hour, $4 more than the minimum for New York, and I don’t know if you’ve ever been here, but that’s not a living wage at all.”

Service work is both mentally and physically exhausting.

Eventually, Turberville left, and has since returned to making drinks. “While I feel I have taken a step backwards a bit, I feel hopeful that I can continue to pursue a Q Grader certification [a coffee certification similar to a test a sommelier would have to take for wine] while working there and that they will support whatever next steps in coffee look like for me.” The Q grader certification is a three-day class followed by 17 coffee evaluation tests — the classes cost about $2,000 and people study for months, expecting to fail at least a few of the tests on their first try. Although it’s a helpful certification for roasters and green buyers to have, it’s rare that a coffee company would pay for this course for a barista.

Folks like Szewczyk and Turberville are still fighting to establish a career in coffee, but it’s common for people to walk away from the industry. “I left my last coffee job for a lot of reasons, one of which was not being paid appropriately for my work,” says Meghan-Annette Reida, a former barista working in Milwaukee. After years of being underpaid, Reida decided to leave coffee altogether. “I got a job in insurance; I’m the lowest paid staff member and I’m still paid twice what I was paid to run a coffee shop.”

On Twitter, Taliaiferro asked folks to detail their coffee journeys, charting the ups and downs of their own employment in coffee as an example. Their reason for asking echoes the experiences of a number of baristas: “Feeling like half a dozen lateral moves isn’t what I pictured for my career, but wondering if it’s more common than I think.” When your career is a series of seemingly similar jobs dressed up in titles like “manager” or “shift lead,” which are often codes for “no tips,” it can be difficult to see a clear pathway for baristas to pursue.

An opportunity to move away from barista work is tempting. Along with wage ceilings, service work is both mentally and physically exhausting, and baristas are often not making the same in tips as their other service colleagues are, so the drive to move off the floor and into roles with more responsibilities is enticing, and many baristas are led down a false pathway that often leaves them both stagnant and burnt out. Because of the way tips are ingrained into specific service settings and because coffee is often priced lower than similar food and beverage experiences, it’s much more lucrative to be a career waiter or bartender than it is a career barista.

Documents like the barista wage spreadsheet will hopefully give power to baristas to demand more from their employers. Baristas at Starbucks have already banded together to call for better wages and more predictable schedules after the company added a meditation app to its benefits package while slashing employee hours. If anything, it’s a cautionary tale to the pitfalls of trying to build a career in coffee — what should be an arrow pointing upward often ends up being a web of ups, downs, crashes, peaks, all together writing an uncertain future for many of our most vulnerable service industry members.

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States Are Going Around Trump to Get More Workers Overtime Pay https://talkpoverty.org/2019/06/27/states-trump-overtime-pay/ Thu, 27 Jun 2019 14:07:29 +0000 https://talkpoverty.org/?p=27751 Getting a promotion is usually a cause for celebration. But after Chip Ahlgren was made a general manager at a Jiffy Lube in Washington state, he moved from an hourly position to a salaried one, and was no longer owed overtime pay when he put in more than 40 hours a week. Instead, Ahlgren could be asked to work as many hours as his boss demands for the same $52,000 a year.

These days, he’s putting in around 60 hours a week, even though his contract says he’s supposed to work 50 hours and the payroll system only counts 40 hours a week for the purpose of accruing sick leave. His managers keep giving him more to do. “They just add and add and add,” he said. “There’s no way for us to get everything done.”

While overall his pay is higher than it was when he was hourly thanks to bonuses, those bonuses aren’t guaranteed. In terms of guaranteed pay per hour, he’s making less: He estimates that right now, it averages out to about $8 an hour, whereas the people below him make $16 an hour. And so much intense work has taken a huge toll on him. “It wears you out to work this many hours,” he said. “I’ve blown out my knee, blown out my back. I’m almost on the brink of not being able to survive physically.”

Ahlgren isn’t eligible for overtime pay because the federal threshold of $23,660 to qualify has gone without an update for decades. And without extra overtime pay for his extra hours, he’s just keeping his head above water financially. “I don’t have really enough to survive or go to the doctor or plan for the future or anything like that,” he said.

Ahlgren may be able to look forward to some relief, however. At the beginning of June, the Washington State Department of Labor & Industries released a plan to update its own overtime threshold. It would ensure that any worker in the state who makes less than 2.5 times the minimum wage — by 2026, nearly $80,000 a year — will be owed overtime pay. About 400,000 people like Ahlgren are expected to be affected.

The state of Washington had to take matters into its own hands because efforts to increase the overtime threshold at the federal level have stalled. In 2016, the Obama administration updated federal overtime rules so those making $47,476 or less would be automatically covered, both hourly and salaried. It would have been updated every three years to keep up with wage growth thereafter, likely covering those making $51,000 by early 2020.

But the update was challenged in court and ultimately struck down. Rather than defend the Obama update, the Trump administration first did nothing, and then put forward its own proposed increase to $35,308 without any automatic updates. According to the Economic Policy Institute, it will cover 8.2 million fewer people than the Obama rule would eventually have.

In the wake of Trump’s weak federal action, a number of states have stepped into the breach, because, as with the minimum wage, federal overtime law is just a floor; states and localities can go higher if they choose.

“This is a standard that is really important to the vibrancy of the middle class, and it has dramatically eroded over time,” said Heidi Shierholz, senior economist at the Economic Policy Institute. The minimum wage raises pay and living standards for those at the very bottom, but overtime is “about the lower end of the middle class,” she said. The typical person impacted by it is the front-line supervisor in a fast food restaurant or retail store — a low-level manager who may be asked to put in 60 to 70 hours a week at no additional pay. Updating overtime therefore acts as a “companion standard” to increasing the minimum wage, she said.

Pennsylvania was the first to act when last year Gov. Tom Wolf (D) proposed raising the state’s threshold to $47,892 by 2022 and updating it automatically every three years after that. California and New York have also taken action: California‘s overtime threshold will cover everyone making less than $62,400 by 2023, while New York will raise it to $58,500 in New York City and phase it in at different rates for different parts of the state.

But Washington state has so far gone the furthest. “The Washington announcement is definitely the boldest,” said Paul Sonn, state policy program director at the National Employment Law Project. “It’s a model for how states can take strong action to protect workers from the Trump overtime rollback. We hope it’ll spur more states.”Previously, about two-thirds of the salaried workforce had to be paid overtime when they worked more than 40 hours a week. Washington’s update would cover about 44 percent, Sonn said: “It’s really quite moderate historically because it wouldn’t fully restore overtime pay to the share that had it in the 1970s.”

Federal overtime law is just a floor.

One of the beneficiaries in Washington would be Sidney Kenney. When he started working at a residential service provider for developmentally disabled people in a salaried position, he was told the job would be 9 to 5, Monday through Friday. “Soon you find out that’s not true,” he said. He was required to always be on call, even on weekends, holidays, and vacations. It meant keeping his phone at the ready even when at the movies or in bed. “It changes how you live,” he said.

He once took a vacation to go to a friend’s wedding but found himself having to do work on the way there, during the wedding, and on the way home. Every time he put in those extra hours, he was paid the same. “It builds resentment,” he said. “You’re angry, you feel like you’ve been lied to, feel like you’ve been taken advantage of.”

So, he decided to move to an hourly position instead. “I loved the job I was doing,” he said. “However, I realized it was not a lifestyle I could continue or wanted to continue.” Now he has a set number of hours, and if he has to come in early or stay late, he’s paid for that extra time. “My days off are my days off,” he said. “I still get phone calls from work and I still get some text messages, but I don’t have to answer them.”

“Your time is invaluable,” he noted. “I can plan things, I can enjoy my time. It’s a crazy world and nothing’s promised, so what time I do have I want to enjoy.”

But he thinks if his state’s proposed overtime update goes into effect, almost all of the positions at his job will simply be made hourly to accommodate it. “I would have stayed in the same position if it were hourly,” he noted. “If they were to extend the same position I had … but in an hourly capacity, I would go back to it.”

Ahlgren doesn’t expect that being covered by overtime regulations would reduce his hours. But it will mean extra money for his extra work. “At least I would be able to go to the doctor and take of myself,” he said. “I would be able to plan for a future where I wouldn’t just have to do this forever.”

Other states may soon join in the action. Last week Massachusetts held a hearing on a bill that would increase its threshold to $64,000 by 2026. Colorado’s labor department kicked off a comment process for whether and by how much it should raise its overtime standards, which will continue through Aug. 15. And a bill has been introduced in Maine’s legislature to increase its threshold. There may be others just waiting in the wings: Sonn noted that 16 states filed objections to Trump’s overtime update. “That shows there’s a long list of states that think it’s not enough,” he said. “We may well see them acting in the future.”

Workers in Washington also hope their state can inspire others to act. “So many businesses have built their models around having these free workers,” Kenney noted. “It’s not right, it’s not ethical, and it’s not fair.”

“I’m just hoping more states follow suit,” he said.

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The Legal Loophole That Lets Companies Like Doordash Steal Tips, Explained https://talkpoverty.org/2019/02/22/legal-loophole-doordash-steal-tips/ Fri, 22 Feb 2019 17:41:50 +0000 https://talkpoverty.org/?p=27363 Popular courier services such as Instacart, Doordash, and Amazon Fresh have been making headlines recently with the news that they’re meeting minimum pay promises to drivers by cutting compensation and using tips to make up the difference. In other words, customers were tipping under the impression that drivers got tips on top of the delivery fee earned per trip, but instead, the companies subtracted the value of those “tips” from the payments that they had promised to workers — saving the company money, but cheating drivers. (Under pressure, Instacart recently reversed its policy.)

Why can these companies get away with such behavior, especially in states like Washington where the tipped minimum wage is illegal? The answer is that these workers aren’t employees. They’re independent contractors, and labor law for independent contractors is very different than it is for employees. As self-employed workers, they are entitled to fewer protections, but also, in theory, have a greater degree of freedom and control.

Some of those same workers argue they’re being misclassified by their employers and should actually be considered employees. This issue has been the subject of substantial litigation, as in 2016 when Uber was dinged for misclassifying workers in California and Massachusetts, and again in California in 2018, where workers won a suit against the delivery company Dynamex. Now some states, including California, are trying to fix the problem with new legislation.

Misclassification occurs when companies improperly categorize someone who functions as an employee as an independent contractor. Individual states and agencies have their own standards — as, for example, when deciding employment status for workers’ compensation purposes — and the IRS has its own 11-point standard. A much simpler rule was applied in the Dynamex case, though: The ABC test. The court found that to be considered an independent contractor, an employee must meet three criteria.

The first is freedom from control: Independent contractors decide how, when, and where they work, set the terms of their employment, and do not receive highly specific direction in the course of their work. The second is performance of work outside the company’s scope of business. In addition, the work reflects an established and independent trade or specialty in which the worker is “customarily engaged.” For example, a plumber is “customarily engaged” in work pertaining to installing, maintaining, and fixing plumbing.

In another example, a florist’s shop might hire a tax preparer as an independent contractor, relying on an expert who sets their own terms and schedule to do work that isn’t within the florist’s normal parameters of business. But if the florist hired someone to work in the store arranging flowers, that person would likely be considered an employee.

The rise of the “gig economy,” sometimes known as the 1099 economy in a reference to the tax forms used to report “miscellaneous” income for independent contractors, has highlighted the misclassification issue, but it’s not new. Misclassification has been a huge historic problem in the construction industry, as well as for domestic workers, janitors, truckers, and many others. Nearly 24 million workers labored as independent contractors in 2015 and only a small slice, around 1 percent, were “gig economy” workers.

For companies, there’s a clear advantage to relying on independent contractors: They’re much less expensive to maintain. Companies don’t have to pay unemployment insurance, workers’ comp, or payroll taxes. Overtime and minimum wage don’t apply, nor do state and local requirements around paid family or sick leave. Nor do they need to provide benefits such as paid time off, retirement funds, or health insurance.

Independent contractors assume all the risks of operating a business, which is sometimes by desire and design. Tax preparers and freelance journalists, for example, may prefer the flexibility of independent contracting, and companies with periodic specific needs that fall outside their normal work, like a company hiring experts for diversity and inclusion consulting, benefit from these kinds of independent contractors.

However, corporations also label workers who function like regular employees as contractors: If you’re delivering packages for Big Package Company in a BPC shirt, reporting for an hourly schedule, following specific routes, and having other aspects of your day-to-day work life dictated by BPC, you are an employee — as a court determined in 2015 in the case of a very real package company: FedEx. Even if you also moonlight for Rival Package Company doing similar work, you’re still an employee.

“Misclassifying limits people’s ability to negotiate while companies are acting as employers and controlling the way work happens,” explained Erica Smiley of Jobs With Justice.

Workers aren’t the only ones concerned about misclassification. The practice is also anticompetitive, harming companies that comply with the law by treating employees as employees, taking on the added responsibility and cost that comes with it. “This is just another way that companies shift burdens onto workers and taxpayers,” says Steve Smith of the California Labor Federation.

This is just another way that companies shift burdens onto workers and taxpayers.
– Steve Smith

Gig economy jobs often come with lofty promises of profit and are marketed with language used to describe independent contracting, such as the ability to set your own hours and select your customers. Earners aren’t paid by the hour in many cases, but by the job; the more jobs they can rack up, the higher the pay.

On the ground, the reality is very different, whether you’re a cleaner with Handy or a courier with Postmates. Companies dictate the terms of employment quite extensively, and in some cases have even created their version of the company store, as with companies like Uber and Swift, which have gotten into the vehicle sales and leasing business for their “contractors.”

States such as Massachusetts, New Jersey, and now California are trying to solve this with laws that clearly define the distinctions between employees and independent contractors.  California’s AB5, for instance, would codify the Dynamex decision. These laws do not, of course, magically eliminate the practice of misclassification or instantly reclassify workers, but they add further guidance around the topic and create tools for workers and labor organizers to use in negotiations with employers.

In other regions, worker-organizers have focused on issues around working conditions themselves, such as pay and access to benefits, rather than the question of misclassification. That’s happened in New York, Washington State and elsewhere — though it should be noted that many of these focus on the gig economy specifically.

The push to clarify the definition of independent contractors could benefit workers and employers alike, and it may also be very disruptive to the tech industry. While the gig economy makes up a relatively small percentage of misclassified workers, Smith said, “What you do see with the gig economy is businesses building an entire business model around misclassification.”

Even as lawmakers consider codifying protections, the National Employment Law Project finds these companies are a driving force behind a wave of “marketplace platform” legislation across the U.S. that explicitly defines gig economy workers as independent contractors, not employees. One venture capitalist shamelessly told CNN: “What is ultimately a better business decision? To try to change the law in a way that you think works for your platform, or to make sure your platform fits into the existing law?”

Building an industry on normalizing misclassification, and sometimes pushing workers to advocate against their own rights, as seen with smiling gig economy workers shilling for their bosses, is a dangerous and troubling trend. Companies are quick to claim that codifying independent contractor status would be “ruinous,” but they also said the same thing about minimum wages, protecting the right to collective bargaining, and other measures designed to improve worker health and safety, and yet somehow, capitalism prevails. Companies that cannot meet their operating costs fall, and others rise to replace them.

“Some businesses,” commented Smiley, “may not deserve to exist in a modern society.”

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Truckers Spend the Holidays Driving Too Much for Too Little Pay https://talkpoverty.org/2018/12/12/truckers-spend-holidays-driving-much-little-pay/ Wed, 12 Dec 2018 14:00:24 +0000 https://talkpoverty.org/?p=27014 Much of America will be engaged in a holiday gift-buying bonanza this month. And whether it’s via online order or plucking wares directly off store shelves, they have truck drivers to thank for the available goods.

“Black Friday, Cyber Monday, everything you shop for or order online is going to be brought by a truck. Many truck drivers opt to spend the holidays alone to deliver that freight and to make that little bit of extra money,” said Desiree Wood, a driver and president of REAL Women in Trucking, an organization that advocates for better work conditions for drivers. “It means you may be in some strange town you’ve never been in before, and isolated to where you can park, which is usually a truck stop where there isn’t any good food.”

A lack of good food options is just the beginning of the issues truck drivers face. Many make paltry amounts of money, even as they spend long hours in a tiny space a long way from home. The median income for America’s 1.8 million truck drivers is $42,000 annually, and those in the bottom 10 percent of earners make just $27,000.

It hasn’t always been this way. In the last 30 years, truck driver pay has plummeted. According to the National Transportation Institute, if wages in the industry had kept up with inflation since 1980, the average driver would be making $111,000 per year. Other estimates don’t show that dramatic of a drop, but even conservative ones calculate drivers should be making some $55,000 today.

The reason for the steep drop is a web of bad policies, but much of the problem stems from the way in which workers are compensated: By the mile, not the hour.

“You might work a 14-hour day and you only drove 150-200 miles. If you only get paid for the miles, you don’t make anything,” said Wood. “The money is so unpredictable. You could get $400 one week and $65 the next week. You just don’t know.”

If wages had kept up with inflation since 1980, the average driver would be making $111,000 per year.

Drivers aren’t paid for the time they wait for their truck to be loaded or offloaded, and traffic and other road conditions, as well as safety regulations that limit the number of hours they can be on the road in a given day, cut into their mileage totals. Every minute spent without the landscape whizzing by their windows is a minute that drivers are essentially working for free.

In October, a U.S. District Court judge in Arkansas ruled that Department of Labor wage regulations require companies to pay drivers for the parts of the workday during which they are on-duty, but not driving or sleeping. Other court rulings have also reprimanded companies for not paying their drivers the full minimum wage.

The industry as a whole, though, still clings to the model in which miles are the only thing that equals money. It also relies on recruitment of new drivers to keep wages low. While articles about trucker shortages have been a mainstay of media coverage in recent years — which in theory should result in pay increases due to competition for workers — companies tend to instead churn through inexperienced drivers who accept lower pay, despite potentially severe consequences.

“Routinely, they attract new drivers, take their money [as compensation for training them], train them hardly at all, put them on the road, and then they crash or die or kill people,” explained Anne Balay, author of Semi Queer: Inside the World of Gay, Trans, and Black Truck Drivers. Those who don’t leave the profession because of accidents often do so because the pay is so low, and then the cycle repeats itself.

“Basically, if you have a pulse you are going to get a job as a truck driver, and you are probably going to be able to get into some company-sponsored truck driving program,” said Wood. “But when you get out there, you realize you’re not making the money you thought you were going to make … You always have these students that are being churned through the system that make very little.”

And it’s even worse if you are a woman, LGBTQ person, or person of color, who often face harassment on the job in addition to the low pay and inadequate training. “If you take what is already a vulnerable labor structure and put these people in it, you have a fucked-up situation,” said Balay. “That sets them up for all the labor abuses you can imagine.”

Further undermining the ability of drivers to make a fair wage is that many are misclassified by their employers as independent contractors, meaning that though they work for just one company, they can be denied benefits and are responsible for many costs usually born by an employer, including the employer-paid side of the payroll tax and upkeep for their vehicles. It also means they can be abandoned at the slightest sign of adversity.

That’s what happened to Janet Steverson. She thought she was signing on for a full-time, in-house job with an Illinois shipping company, but was instead hired as an independent contractor. After she got in an accident (in which her fingers were so badly cut that one had to be amputated), she says the company severed the relationship and left her with nothing.

“I’ve lost my house, I lost everything,” she said. “I have no money, no income no nothing, and they’re also not paying my doctor’s bills.”

Steverson was labeled as a contractor even though she says everything she did was controlled by the company for which she drove. “I have to go where they tell me to go, I have to use their fuel card,” she said. “How can I be an independent contractor?”

A lawsuit involving one such misclassified driver, Dominic Oliveira, was heard by the Supreme Court in October. He is suing for back pay, and the case revolves around whether he is able to engage in a lawsuit or whether his case has to be heard in private arbitration, a venue in which businesses interests almost always win. Oliveira details instances in which he would drive 1,000 miles in a week and yet have to pay his employer at the end because of fuel costs and the costs of tools he claims the company required him to buy.

Companies have gotten very good at letting workers think that being an independent contractor will give them more control over their lives and more pay, when in reality it foists much of the business risk onto the individual worker.

It’s not uncommon for a driver to work 50 hours and earn zero dollars.

“These are workers who often times only have a few years at most in the industry and they do buy it. They get in these very coercive arrangements,” said Steve Viscelli, a sociologist and author of The Big Rig: Trucking and the Decline of the American Dream. “I’ve worked on cases in which every third payweek in which drivers worked, their pay is zero or negative … It’s not uncommon for a driver to work 50 hours and earn zero dollars.”

Why do trucking corporations get away with paying so little? In part, it’s because the government gave up regulating them nearly four decades ago, passing the Motor Carrier Act of 1980 as part of the bipartisan push that also deregulated airlines and other industries in the name of boosting business competition, and then undercut the unions that were helping to keep wages up.

“They broke up the unions and stopped regulating freight,” said Balay. “Instead of regulating companies and freight, the government started regulating the individual worker.”

All of this is occurring today under the specter of automation, with the widespread belief that within the next generation, if not sooner, most long-haul driving will be done by autonomous vehicles. When that occurs, it’s the best-paying trucking jobs that are most likely to disappear.

“All else equal, it’s going to be those better jobs that make more sense to automate from an economic perspective,” said Viscelli, because long highway routes will be easiest for robot trucks to navigate. He estimates that driverless trucks will result in the destruction of hundreds of thousands of high- and middle-wage trucking jobs, leaving mostly lower-wage jobs behind, such as those taking loads through cities and packages door to door.

This month, all of these problems will be ongoing as drivers blanket the country, ensuring that families everywhere have what they need and desire to celebrate the holidays, even if the people responsible earn very little in the process.

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Tens of Thousands Mobilize to Support Arizona Teachers Amid Backlash https://talkpoverty.org/2018/04/27/tens-thousands-mobilize-support-arizona-teachers-amid-backlash/ Fri, 27 Apr 2018 14:25:57 +0000 https://talkpoverty.org/?p=25623 On Wednesday afternoon in Tucson, on the eve of Arizona’s first ever statewide teacher walkout, every intersection along Broadway Boulevard became red.

For 20 miles, under a robin’s egg sky, teachers and public education supporters lined sidewalks and curbsides, parking lots and strip malls. They formed small seas of red shirts, hats, and beach umbrellas, and waved signs proclaiming “#RedForEd” and “Arizona education deserves more.” A school social worker walked along the road, wearing a full-body sign: “Best practice is 1 social worker to 250 students. I serve 942.”

One woman held a sign that read: “Arizona exports cotton, copper, and teachers,” a reference to the fact that teachers are leaving the state in droves.

I traveled the entire route with my sons—20 miles to the east side where cheering teachers stood backdropped by the Rincon Mountains, and then 20 miles to downtown where teachers waved signs from overpasses and chanted through bullhorns. My sons—who, at ages 3 and 6, believe that teachers are superheroes—drank milkshakes in the backseat, watching the red unfold intersection after intersection, and cheered them on.

But Wednesday’s demonstration was just the beginning. On Thursday morning, tens of thousands of teachers across Arizona walked out of their classrooms. More than 110 school districts closed, affecting up to 840,000 students.

*                  *                  *

Resentment among Arizona educators has been simmering for years, caused by repeated budget cuts, the misuse of sales tax monies intended for public education (as confirmed by an Arizona Supreme Court ruling in 2010), and related lengthy lawsuits between the state and its public schools seeking back payments. During the Recession, the Arizona state legislature cut $1.5 million from public schools, more than any other state, leaving Arizona schools more than $1 billion short of 2008 funding.

“There’s no toilet paper, there’s no soap, and our textbooks are like 15 years old”

Arizona currently ranks 49th in the country for high school teacher pay and 50th for elementary school teacher pay. When adjusted for inflation, teacher wages have declined more than 10 percent since 2001. Per-student spending in Arizona amounts to $7,205, compared with the national average of $11,392. There are currently 3,400 classrooms in Arizona without trained or certified teachers, and the state has over 2,000 teacher vacancies.

Inspired by grassroots teachers movements in West Virginia, Kentucky, and Oklahoma, Arizona teachers are using their collective power to demand change. A newly mobilized coalition, Arizona Educators United, has partnered with the state’s teachers union, the Arizona Education Association, to organize and coordinate demands. Teachers have held organizing meetings and “walk-ins” over the past few weeks, gathering together before school hours in protest of low pay for teachers and support staff—many of whom rely on second or third jobs just to get by—as well as insufficient classroom materials and per-student spending well below the national average.

Last week, when the Arizona Education Association held a statewide vote, 78 percent of the 57,000 Arizona educators who voted supported walking out. The teachers’ demands include a 20 percent pay increase; a permanent salary structure with annual raises; education funding restored to 2008 levels; competitive pay for support staff; and “no new tax cuts until per-pupil funding reaches the national average.”

In response to the demands, Governor Doug Ducey (R) offered teachers a 20 percent pay raise by 2020. But teachers are wary of Ducey’s plan, saying he hasn’t released details about how it would be paid for. The plan also doesn’t include raising wages for support staff, whom teachers say play critical roles in serving students.

While 74 percent of registered Arizona voters say the state spends too little on K-12 education, not everyone supports the teacher walkout. State Superintendent of Public Instruction Diane Douglas threatened consequences for teachers participating in the action. “A walkout is a nice term for it. It is a strike, plain and simple,” Douglas said in an interview this week, referring to a 1971 opinion from the Arizona attorney general, which said that public employees could not legally strike. Douglas suggested that teachers could be investigated, referred to the Board of Education, or even stripped of their teaching certificate.

State Rep. Kelly Townsend (R) made headlines after she responded to an email from a constituent who asked that she and other legislators find a way to fund education and avoid a walkout. Townsend, who serves as Majority Whip, responded:

I’m sure we can take it from the correctional officers pay who make minimum wage in some cases, release some of the prison population, take it from the developmentally disabled and close adult homes from the disabled, freeze Alzheimer’s research, take it from Veteran’s services, dental services for the underserved, desperately needed road funds, the university funding, and put another freeze on Kids Care health insurance.

She has since become increasingly verbal in opposition to the walkout, even threatening a class action lawsuit.

But amid the backlash, many community groups have mobilized to support the teachers, including nonprofit organizations, youth centers, and churches offering free or low-cost camps and daycares for working parents in need of childcare during the walkout. And on Thursday, more than 50,000 teachers and supporters converged at the state capital in Phoenix.

*                  *                  *

Yesterday morning in Tucson, I found hundreds of teachers, parents, and students demonstrating peacefully and passionately in front of the courthouse. Parents lifted toddlers onto their shoulders to wave at passing cars. A family spread out a picnic on a blanket in the shade. When a semi-truck drove by, honking in support, the crowd erupted into cheers. Some demonstrators planned to later join the masses in Phoenix; I overheard a lighthearted joke about the streams of teachers in their station wagons, obeying the speed limit all the way to the rally.

High school teacher Jeff Mann brought his two children to the Tucson rally. “It’s a chance for our kids to see what civic engagement is and how you fight for what matters—have your feet match your mouth,” he said. “It’s unfortunate that these are the steps we have to take, but we haven’t been given many choices. My hope is that I’m back teaching tomorrow, that the legislature comes to their senses, and that education is funded.”

A group of students from Tucson’s IDEA School stood together on a corner with their teacher, chanting and waving homemade signs. One 10-year-old in the group told me, “We’re not a public school, but we’re helping support all the public schools, because we want all the teachers to have more money and the kids to have more materials.”

“I work two extra hours a day, unpaid.”

On the same corner, seventh-grader Salome Arrieta and her mother Victoria stood together, holding #RedForEd signs. Salome said that despite her middle school receiving the prestigious A+ School of Excellence Award from the Arizona Education Foundation, there’s still a glaring lack of resources. “Whenever I go to my school and try to use the bathroom, there’s no toilet paper, there’s no soap, and our textbooks are like 15 years old,” she said.

Salome’s mother, Victoria, an elementary school special education teacher, said she walked out to support the kids. “Everyone needs a raise. Not just the teachers. When you’re a special education teacher, the support staff is an integral part of your job, and they need to be paid more, too.”

Across the street, second-grade teacher Sonya Rosales told me, “My kids are sitting on carpet from like 1976. Any activities that we do, whether it’s for Mother’s Day or Valentine’s Day, it comes out of our own pockets. We get 10 reams of paper per quarter, and once it’s out, that’s it.” She said learning materials are so outdated that she’s forced to make her own worksheets. “I make everything myself on my computer. I go to the Common Core standards, and every worksheet I make myself. I work two extra hours a day, unpaid.”

A teacher named Roberta who preferred not to give her last name said she’s been teaching for 35 years and spent more than $1,000 of her own money on materials for her classroom last year. “I do the very best that I can,” she said, “If it means me spending money out of my pocket, I do that because I’m a teacher and I care about my students, and I care about seeing my students walk across that stage.”

As she spoke, her eyes filled with tears. “I’m doing this for my students. I’m a Republican, but it doesn’t matter whether you’re a Republican or a Democrat. It’s about our students.”

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‘Giving Up Food So Our Children Can Eat’: The Workers Using Hunger Strikes to Protest for a Living Wage https://talkpoverty.org/2018/02/22/giving-food-children-can-eat-workers-using-hunger-strikes-protest-living-wage/ Thu, 22 Feb 2018 16:42:22 +0000 https://talkpoverty.org/?p=25275 As spring came to Rhode Island in 2014, Dominican hotel housekeeper Santa Brito and fellow hotel workers Ylleny Ferraris, Mirjaam Parada, and Mariano Cruz were gathering signatures for a Providence $15 wage initiative. “We had to divide up,” says state representative Shelby Maldonado. “We asked: Who speaks the best Spanish? The best Creole?” Maldonado, a child of Guatemalan immigrants and a former UNITE HERE organizer, says that Rhode Island’s immigrant workforce viscerally understood the issues at stake.

They delivered their petitions. The city council put their living-wage initiative on the November ballot. When they convened a public hearing, a hundred hotel workers came to watch. Twenty-two registered to testify. They took time off, found babysitters, and wrote their testimonies.

Then, at the last minute, the hearing was canceled.

Brito was angry. She believed city officials had been pressured by the Procaccianti Group, a hotel management and construction company that donates heavily to Rhode Island political campaigns. “The Procacciantis,” she said, made her clean 18 rooms daily, made her work till the day she gave birth. Then “the hotel told me they couldn’t guarantee me a job. I was fired for speaking out. I know it.” She shakes her head, disgusted. “I used to be afraid, but I’ve lost my fear. What else can they do to me?”

“I have the power, the will, and the strength to fight and take a stand,” she says. “I have a right to create a union in my workplace and fight to correct grievances. It’s very important to be united at work, to be able to confront the injustices we face.”

It seemed for a while that the workers were winning, that the $15 wage would become law in Providence. Then state legislators introduced a pre-emption bill, banning local governments from enacting a wage higher than the Rhode Island minimum, which was only $8 an hour. Brito was outraged. “I have to borrow money from my brothers and cousins just to pay off my bills,” she said.

The Rhode Island legislature was majority Democratic, but hotel and restaurant owners lobbied hard. They paid $100,000 to lobbyists to push the bill. “House leadership is moving to jail us in poverty,” said Brito. Brito and Ferraris announced a life-or-death fight for Rhode Island’s working families. Seventy-three percent of jobs in the state paid too little to live on. The state’s workforce—Dominican, Guatemalan, South American, Haitian, and Cape Verdean immigrants—lived in poverty, says Maldonado, unable to feed their children decently. So Brito and Ferraris, hotel chef Mirjaam Parada, and Maldonado decided to stage a huelga de hambre—a hunger strike. Setting up camp on the steps of the state capitol, the women told reporters they were giving up food so that the state’s children might have enough to eat.

Shelby Maldonado, child of a Guatemalan domestic worker, former UNITE-HERE organizer, hunger striker for a living wage in June 2014, and now one of the youngest state representatives in Rhode Island. She successfully sponsored a pregnancy discrimination bill in honor of her mother and the women she went on hunger strike with.
Shelby Maldonado, child of a Guatemalan domestic worker, former UNITE-HERE organizer, hunger striker for a living wage in June 2014, and now one of the youngest state representatives in Rhode Island, poses for a portrait. She successfully sponsored a pregnancy discrimination bill in honor of her mother and the women she went on hunger strike with.

Photographs of the four women, and of Brito’s young son, circulated widely. It wasn’t enough. A majority voted for preemption.

By 2017, with Rhode Island’s minimum still only $9.60 an hour, service workers seeking raises began reaching out to sympathetic business owners. Jeremiah Tolbert, owner of Jerry’s Beauty Salon in Providence, became a spokesperson. He upped his workers’ wages to $15, then invited the press to explain why. When small businesses pay more, local workers have money in their pockets to spend. For Tolbert, raising wages has been “a win-win.” He has urged other local businesses to follow suit.

Nine months later and 3,000 miles away, another group of hunger strikers from Walmart battled for a living wage. Los Angeles mayor Eric Garcetti had long insisted that he would only support raising the city wage to $13.25, says Denise Barlage. In April 2015, she and seven other women workers sat down outside LA City Hall. They sat there for two weeks, consuming only tea and water. Though temperatures hovered in the 60s, Barlage felt cold by the sixth day without food. Her blood pressure was low. She donned a hat and gloves to keep it from falling further.

“We were ready to be arrested,” she recalls. “We were going to handcuff ourselves to the building.” Then they saw the mayor walking toward them. They held up their sign: “Women Fast for $15.” The mayor stopped. He looked at them, leaned down. “Then he told us he was on board with 15,” Barlage remembers. Weak from days of fasting, some of the women began to cry.

Before breaking their fast, the hunger strikers testified before the city council at a minimum wage hearing. The strikers were mothers and grandmothers who worked two or three jobs to survive, Barlage says, but still had to choose “whether to feed their children or themselves. That’s just wrong.” The women spoke of their fears of eviction and homelessness. They told of kids who didn’t have decent clothes for school or bus fare to get there.

“I am Mary Carmen Farfan, mother of four. I work at Burger King,” one woman began. “I decided to make a fast for my kids, for my family, for my coworkers. These are single mothers. We have struggled to pay rent, to feed our kids … I can’t … because I have only $9 for a minimum wage.” No one can afford to live in LA on less than $15 an hour, Mary said. She also told city officials how she shared a home with nineteen people from three families who earned between $9 and $13 an hour. By hearing’s end, LA’s City Council had voted for the $15 wage, says Barlage. “What that felt like, I can’t describe.”

Denise Barlage has gone on hunger strike for a living wage and respect in front of Los Angeles City Hall and the Park Avenue, Manhattan penthouse of Walmart heiress Alice Walton.
Denise Barlage has gone on hunger strike for a living wage and respect in front of Los Angeles City Hall and the Park Avenue, Manhattan penthouse of Walmart heiress Alice Walton.

Barlage is one among many living-wage activists for whom hunger strikes have become a way of life, a potent weapon because it crystallizes the moral bottom line of this struggle. “So many workers today are used to being hungry,” Barlage says. “Hunger doesn’t scare us. It only scares people who aren’t used to it.”

Seven months after their successful fast in LA, Walmart workers fasted for ten days on Manhattan’s most famously wealthy boulevard, Park Avenue. They chose the Thanksgiving holiday—a ritualized celebration of American overindulgence—to highlight hunger among Walmart workers. Barlage came. So did workers from Florida, Virginia, Minnesota, and Maryland, their neon-green OUR Walmart shirts glowing in the gray November chill as they sat outside Walmart heiress Alice Walton’s penthouse. Walton sits on a personal fortune north of $33 billion, and her apartment was rumored to have cost $25 million.

Sacramento activist Tyfani Faulkner says she came because “people don’t realize that many Walmart workers are starving.” She says it galls her that her colleagues are hungry. “You’re working at this huge grocery store and workers are living off ramen noodles and chips because they can’t afford to eat better. I thought fasting was a great way to show that and to be in solidarity with those who aren’t eating, not because they don’t want to but because they don’t earn enough to eat well.”

“We didn’t see Alice Walton the whole week,” she says. The doorman told Barlage that Walton had groceries delivered rather than walk past the hunger strikers. “He told us she was up there drinking Scotch and smoking cigarettes, rather than talk to us.” Meanwhile, the protesters lived on donated broth and tea. “I stayed and fasted for ten days,” Barlage says, “because I didn’t have a job to go back to. Walmart had closed our store. They said it was plumbing problems but it was because we were too loud and strong.”

Venanzi Luna speaks at a protest by Organization United For Respect at Walmart after the corporation shut down the Pico River, California store and four others without warning in Spring 2015, allegedly for plumbing problems. The protesters believed that it was in retaliation for worker organizing. Luna led the first strike against a Walmart on U.S. soil in 2012.
Venanzi Luna speaks at a protest by Organization United For Respect at Walmart after the corporation shut down the Pico River, California store and four others without warning in Spring 2015, allegedly for plumbing problems. The protesters believed that it was in retaliation for worker organizing. Luna led the first strike against a Walmart on U.S. soil in 2012.

The Park Avenue hunger strike was part of a nationwide “Fast for $15.” A thousand people across the United States forswore food for two weeks leading up to the shopping frenzy that is Black Friday. Some fasted in front of the Carmel, California, mansion of Walmart chairman Greg Penner. Bleu Rainer fasted in front of a Tampa Walmart. Fasting workers could be seen outside many Walmart stores. Finding a thousand people to fast might have been hard except that hunger is a condition that low-wage workers know too well. “I have had to rely on food stamps to get a good meal,” Rainer says. “And when those food stamps run out, it’s back to square one, which is nothing at all.”

Hunger is widespread in the United States. In 2016, more than 60 million Americans qualified for food aid. That’s nearly 20 percent of citizens in the richest country in the history of the world. Forty-five million Americans that year received assistance through SNAP (Supplemental Nutrition Assistance Program), the federal program that used to be called food stamps. (Most people who receive it still do call it that.)

But in some U.S. counties, as many as two-thirds of hungry citizens do not receive aid. Toward the end of George W. Bush’s presidency and at the beginning of Barack Obama’s, expansions in federal food aid cut the numbers of hungry Americans significantly. But then, Congress and state legislatures slashed budgets and tightened eligibility. And the number of hungry Americans rose again. Many of the hungriest are children.

Hunger is endemic in places you’d least expect, in affluent states like New York and California, and even more so in the nation’s most expensive cities and suburbs. Forty-two percent of students in the University of California system did not have enough to eat in 2016. Forty-five percent of UC employees said they were frequently hungry. Twenty-five percent ate substandard food because they could not afford better. Seventy percent skipped meals to save money.

And these are the winners: students and employees at one of the world’s great university systems. Fifty-eight percent of surveyed employees held bachelor’s degrees or higher. Ninety-six percent worked full-time and were the primary earners for their families. Clearly, they represent just the tip of the iceberg of hunger in America.

“The thing that so many Americans just don’t seem to get,” says Barlage, “is that Walmart workers and McDonald’s workers and so many other working people in this country are really, actually hungry all the time.” OUR Walmart activists ask workers who bring lunch to “pool what we have so everyone can get a little—chips, some sandwich. Otherwise a lot of people won’t have anything to eat. We take Walmart’s line about how we’re all family seriously—even if they don’t.” Pooling food has become part of what the movement does. “That’s why we do hunger strikes. Two weeks without food. I might feel a little cold. My blood pressure might drop a little. But I can do it. Hunger doesn’t scare me.”

Excerpted from “We Are All Fast-Food Workers Now”: The Global Uprising Against Poverty Wages by Annelise Orleck (Beacon Press, 2018). Reprinted with permission from Beacon Press.

Photography by Liz Cooke.

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Millennials Support Unions—So Why Don’t They Join Them? https://talkpoverty.org/2016/10/06/millennials-support-unions-dont-join/ Thu, 06 Oct 2016 13:32:19 +0000 https://talkpoverty.org/?p=21434 This is another article about Millennials, and how we value fulfillment over money in our jobs, and experiences over things. But it’s also about why—it’s about how, when the financial crisis hit, we were the ones who couldn’t get jobs. Or money. Or things. And it’s about how, when our country decided that higher education was no longer a public good, we were the first generation hit—really, truly hit—by the staggering cost of college and the interest rates that went along with it.

This is an article about security, and empowerment, and how Millennials feel disengaged from the political process, but not from politics. In the end, this is an article about unions, and how maybe, just maybe, they could be Millennials’ silver bullet.

In 11th grade I began each day at 7:15, fingering my way towards the off button on my alarm clock. I never hit snooze in my three years at that school, not once. For me, in boarding school, there was no time to snooze. I was out of my league in every way, from the clothes I wore, to the way I spoke, to the way I thought. My class at Andover was the 234th entering class, the 34th that admitted women, and the first to receive need-blind admission.

My second period class was U.S. history with Mr. Jones, a notoriously hard teacher who sometimes played a game called “attendance” with us. He’d ask us for our favorite band, television show, or movie of the moment. If he didn’t like an answer, he threatened to mark us as absent for the day. The school only granted you five “free” absences per the term—any more and you were assigned extra work duty.

Near the middle of the term, as we inched closer and closer to the precise center of our textbook, we began learning about the labor movement. Our textbook, despite its colored pages, featured only black and white images of factories filled with older white men—perhaps a necessary product of the time, perhaps not.

I’m not sure if any kids in the class had family members who worked in unions. No one said they did. No one said they didn’t.

After midterms, I mostly forgot about unions. I graduated from high school and then college, and landed a job at a think tank. My first day was June 1. By the end of the month, I had signed a union card.

***

“There’s this perception that young people don’t really care about their work, like insurance and benefits. Because they’re young,” Eunice How tells me.

Eunice is 26, Chinese Malaysian American, and an organizer with the UNITE HERE union in Seattle. Her parents, who are ethnically Chinese, immigrated to the United States when they were denied access to higher education in Malaysia. They moved to Illinois, where Eunice was born, then to Singapore, then back to Illinois, and then Eunice moved to Washington state for college, where she’s lived ever since.

Do we care about insurance and benefits? I wonder. Do I care about insurance and benefits?

I pause and think back to when I was offered my job. I was lying in my bed fiddling about, in the last few weeks before college graduation, when a representative from HR called to offer me the job.

“Really?” I asked.

“…really,” she said, skeptical of my skepticism.

“I’m sorry,” I stuttered back. “I’m just. I’m surprised,” I said.

When did employment become a surprise? When did the story change from sending out one résumé to sending out 100?

Millennials are a generation defined by insecurity.

Millennials, generally defined as those aged 18 to 35, are a generation defined by insecurity. Our lives were rocked by national insecurity, with 9/11 and terrorism and the Iraq War, and then financial instability, when we watched parents and relatives and loved ones across the country lose their jobs in the wake of the greatest economic recession in recent memory. A recession that was so sudden, so unforeseen, that it reverberated across families, towns, and local economies like an earthquake, leaving behind a tremoring 10% unemployment rate.

Today, Millennials are still reckoning with the aftermath. And, if history is any indication, we always will be. Recessions tend to follow generations: if you enter the economy during a recession, when demand for jobs is high but the supply is low (and so are wages), your earnings will stay low even when the recession fades. It’s no wonder that, according to recent polling, Millennials are the only generation that prioritize economic stability over economic prosperity.

Financial insecurity is like trying to build an Ikea bookshelf after you mess up the first step: the bookshelf will never balance quite right. Financial insecurity affects the job you decide to take, where you live,  whether you buy a house, how many kids you have, if you have kids, how much money you put toward your health care, whether you can travel to see the world, and your views, beliefs, and relationships.

Unions improve conditions for workers in many ways, from higher wages to stronger benefits, but, taken together, they can be summed up in one word.

What do unions offer young workers? I ask Eunice. “Security,” she tells me.

***

If you’re a Millennial, you’re likely making less money than your parents did at the same age. Wages for a 30-year-old today are lower than they were for a 30-year-old in 2004, and more Millennials live in poverty today than older generations did at the same age. In addition to earning less, each successive graduating class over the past few years has received the dubious honor of the most indebted graduating class in history; the average student debt burden per borrower now surpasses $35,000.

We’re also the most educated generation in history. And we’re part of a workforce that has become more and more productive, even though we haven’t seen that trend reflected in our wages.

That is the first reason that it’s confusing that more Millennials aren’t in unions: unions are proven to raise individual wages. According to a 2011 analysis from the Bureau of Labor Statistics union workers averaged $23.02 an hour, compared to $19.51 for nonunion workers. These gains are collective: increases in union density raise wages for nonunion members. More broadly, when low- and middle-class Americans have more money in their pockets the entire economy benefits from increased spending.

Americans seem to recognize this: in 2016, a (slim) majority of Americans said labor unions mostly help the U.S. economy. What’s more, in another Gallup poll, Millennials appear to be the generation most supportive of unions. In 2015, Gallup found that 66% of 18- to 34-year-olds approved of labor unions, versus 53% of 35- to 54-year-olds.

And yet, while Millennials appear to be the most supportive generation of unions, they’re also among the least likely to actually be in one. In 1984, 17% of 30-year-old private sector workers were covered by a union. In 2004 that number dropped to 7.6%, and in 2014 it was down to just 5.9%.

Why do Millennials value unions, but not experience their value?

While an uptick in anti-union activity explains part of the mismatch between the number of Millennials covered by unions and the number who could be, there’s another a problem. There’s a pervasive idea that unions are only for certain kinds of people: low-income, industrial, white, older, male workers. For Millennials, the most diverse generation in history, this image isn’t simply outdated—it’s prohibitive.

***

“I never really learned about the labor movement until I was in college,” Eunice says. Her mom was in a teacher’s union, but since her school was a closed shop she didn’t really have a choice in the matter. “I guess I recall thinking unions are for working class people.”

“That’s changed!” she exclaims. “There’s all sorts of people who are in unions: office staff, nonprofit workers, health care workers. It’s not just like the white man who’s a plumber! That’s the media view.”

That’s also—whether by consequence or coincidence—the view of a lot of Millennials.

Shawn Fields is 27, black, and a graduate student at the University of Illinois Urbana Champaign. She’s also a member of the American Federation of Teachers (AFT) Local 6300. She grew up in Detroit, home of the American auto industry, and the auto workers’ unions. Union blood runs through her veins: her great-grandfather worked in the factories, and her grandmother, as a preschool teacher, was also a member of the AFT.

But Shawn never saw herself joining a union. “I didn’t think about it,” she says. “In Detroit, a lot of the unions are very much industrial, and I didn’t see myself getting an industrial job so it never necessarily occurred to me that that was an option.”

The three things that came to mind when Shawn described how she thought of unions growing up? Detroit, auto workers, older men.

When she landed at the University of Illinois for grad school, a mentor reached out and told her about the union. Though graduate students at private universities only just won the right to unionize this summer through a National Labor Rights Board (NLRB) decision, as a public university, graduate students at UIUC have been unionized since 2002.

Shawn joined and is now an active member of her bargaining unit, and has also served on the AFT’s racial justice task force.

What do you think of unions today? I ask. Who do they represent?

“It’s definitely more diverse than what I imagined when I was younger. It’s definitely young people, a lot more women and people of color than [what I thought] when I was younger,” she says.

***

Millennials are the most diverse generation in the history of the United States. When the AFL-CIO, the largest federation of unions in the country, passed a resolution in 2013 recognizing the importance of youth engagement for the future of the labor movement, it simultaneously passed a resolution on diversity. “A diverse and inclusive labor movement is essential to connecting with and representing the workforce of the future,” the resolution read.

The demographics skew in unions’ favor. Millennials are more likely to be people of color than previous generations, and some racial minorities—notably black Americans—tend to be over-represented in unions and to hold more positive views of them. According to the AFL-CIO, African Americans constitute 11.7% of the workforce but 14% of union members. At the same time, 69% of black Americans view unions positively, versus 51% of the general population.

There’s a new American majority, but we’re going to focus on white guys?

And yet despite the promise of these statistics, Rachel Bryan, a staff member at the International Brotherhood of Electrical Workers—who is black and formerly incarcerated—sees a disconnect between unions’ potential and their reality.

“We’re not organizing in an effective way. We’re not organizing where [young people] are. We’re not linking ourselves back into the community in ways that young people are there…There’s a new American majority, but we’re going to focus on white guys?”

“It doesn’t work that way,” she says.

***

For the organizers I talked to, unions were about security. But for the young union members I talked to, their union experiences were defined more by a sense of empowerment. For the generation that founded Occupy Wall Street and then Black Lives Matter, the association of unions with empowerment is important.

“I didn’t feel comfortable at my old job to ask for more things, because I felt lucky to have a job,” says Jane Tandler, a 26-year-old Ph.D student at Duke University and a leader of the movement to organize the school’s graduate students. She pauses, twisting an idea around her mind.

“I’m trying to think if this is an issue of empowerment,” she finally muses aloud.

Jane first joined Duke’s graduate student unionization efforts because she wanted to improve her school’s policies concerning sexual harassment. Originally, she says, it hadn’t occurred to her that a union could help address her concerns and work to improve the policy. Now when I ask her to name how unions impact Millennials, she rattles off a list of issues prominent to our generation: Black Lives Matter, sexual assault and harassment, environmental justice. For Jane, whether she realizes it or not, unions represent a distinct kind of empowerment: the ability to organize around specific issues.

Without prompting, Shawn, the grad student at UIUC, volunteered the idea of empowerment when I asked her why she decided to join a union in the first place. “You can kind of feel very disconnected from everything” as a graduate student, Shawn says. But when a mentor introduced her to the union, she says, she had a realization: “Oh this is something I want to do that makes me feel more empowered.”

***

Economists talk a lot about matching: when the workforce’s skills match the demand of the local labor market, unemployment is low. In a similar sense, unions match Millennials’ needs. They’re a platform to agitate for higher wages and better benefits, which Millennials need to counteract the lasting effects of the Great Recession. They also provide a bridge to advocate for the issues Millennials care so deeply about.

Sometimes it feels inevitable to me: there must be a swell of Millennial support for the labor movement coming. The pieces fit too perfectly. They match. But the image problem—the idea that unions only represent older white male workers—can feel intractable. It’s not just prohibiting Millennials from securing better wages or stronger benefits—it may also be blocking Millennials from using unions as an outlet for their politics.

Millennials don’t turn out to the polls in overwhelming numbers (in fact, the numbers underwhelm). We may be withdrawing from traditional measures of political engagement, but we’re not withdrawing from politics. We demand accountability for biased policing, we rally to raise the minimum wage to $15 an hour, and we organize against the campus sexual assault epidemic.

Unions—which, almost by definition, uplift the 99% and rely on collective action—could be the platform that finally captures Millennials’ particular breed of political engagement. Are unions—and Millennials—ready to turn the page?

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How Criminalizing Unemployment Creates Bad Jobs https://talkpoverty.org/2016/04/28/how-criminalizing-unemployment-creates-bad-jobs/ https://talkpoverty.org/2016/04/28/how-criminalizing-unemployment-creates-bad-jobs/#comments Thu, 28 Apr 2016 12:58:26 +0000 https://talkpoverty.org/?p=15956 The criminalization of poverty has become a sadly familiar topic. Largely overlooked, however, has been the related criminalization of unemployment.

In the past, unemployment was criminalized under the rubric of vagrancy prosecutions and related forms of racially-targeted labor control. Today, such practices have returned in new forms. In several contexts people face jail time if they do not work to the government’s satisfaction. How this happens is explored in “Get To Work or Go To Jail,” a report I recently coauthored with colleagues at the UCLA Labor Center and A New Way of Life Reentry Project. In many ways, these work requirements parallel the more familiar ones in public benefits programs, where people risk losing income support if they do not work enough.

The most straightforward examples come from probation, parole, and other forms of criminal justice supervision that operate outside the confines of prison. As Yale Law School professor Fiona Doherty has been documenting, work requirements are a pervasive feature of these systems. Failure to work can violate the terms of supervision—and create a path back to jail. On any given day, some 9,000 Americans are behind bars for violating probation or parole requirements to have a job.

As with work (or work search) requirements in aid programs such as Unemployment Insurance, the Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamps), and Temporary Assistance for Needy Families (TANF), an essential question is always whether lack of work is voluntary or involuntary. In practice, this is a question of labor standards: Which jobs should someone be allowed to reject? Those that pay below the prevailing wage? Have erratic schedules incompatible with childcare? Subject workers to retaliation for organizing?

The function of enforceable work requirements is to get people to take jobs they otherwise wouldn’t, and to set up a system of surveillance to ensure that they do. And this is exactly what happens. For example, a recent study of Texas’s much-touted Noncustodial Parent Choices program found that work requirements enforced by the threat of jail caused employment to increase but wages to decrease. A study of Wisconsin welfare reform found similar downward pressure on earnings.

An even stronger analogy to work requirements in aid programs comes from court-ordered debts, such as child support obligations and criminal justice fines and fees. At the center of the modern debtors’ prison conversation, these debts are deeply linked to labor. The connection arises from the same simple question at the heart of income support programs: Why don’t you have more money? For means-tested benefits, lacking income is why the government gives you money as assistance. For court-ordered debt, lacking income is why you don’t have to give money to the government: the Constitution forbids imprisoning those who simply are unable to pay their debts.  But in both contexts, the suspicion arises that lack of income is “voluntary” if additional earnings could be generated by working more. Notably, that suspicion is thoroughly shaped by racial stereotyping.

African-American fathers are ten times more likely than other fathers to be jailed for child support.

Take child support enforcement, for example. State agencies’ collection efforts begin by scrutinizing non-custodial parents’ inability to pay and end by scrutinizing their inability to work.  Most states construe child support obligations as a duty to earn enough to pay.  As a result, a penniless parent can end up behind bars if, as the Supreme Court of California explained, that parent “fails or refuses to seek and accept available employment for which the parent is suited by virtue of education, experience, and physical ability.”  The courts consistently have upheld incarceration for nonwork in the child support context, despite the striking similarities to Jim Crow-era debt peonage practices that the Supreme Court long ago struck down as unconstitutional involuntary servitude. These similarities include shocking disparities of race and class, with African-American fathers ten times more likely than other fathers to be jailed for child support.

Detecting voluntary unemployment is notoriously difficult. The more you distrust those who say they cannot find jobs, the more tempting it is to surveil them. That is one legacy of persistent racial stereotypes concerning labor discipline. This sort of surveillance is a crucial function of employment programs, even when they are bundled with services, which often have dubious value. When participation in employment programs is mandatory, they generally are designed to push people to accept jobs they can already find, or to blame them for not finding any—not to improve their employment prospects in a meaningful way. That framework is explicit in the Obama Administration’s recently proposed child-support regulations, which promote “rapid labor force attachment” and reject “services to promote access to better jobs and careers.” While better than simply locking up noncustodial parents who can’t afford to pay, this “work first” model returns us to the questions of labor standards and diminished bargaining power.

When no jobs are available, the next step is to create a degraded tier of second-class work. Unpaid “workfare” or “work experience” programs have served that function in the years since 1990s welfare reform. Today, we see something similar happening with criminal justice debt. Mandatory “community service” may seem enlightened compared to throwing unemployed people in jail. Similarly, “offering” workfare is arguably better than simply terminating benefits for lack of work, as occurs under SNAP’s harsh “able-bodied adults without dependents” work rules that can cut off assistance even when no work is available.

Thus, a widely touted progressive reform when it comes to court-ordered debts is to offer unpaid community service as an alternative to debtors’ prison. This policy already is in place in Los Angeles, where every year an estimated 100,000 people are ordered to work for free or go to jail. By labeling it “community service,” the authorities attempt to shield this unpaid work from labor and employment protections such as the minimum wage and workers’ compensation for job-related injury. A federal judge upheld a similar policy in a recent New York case.

As with workfare, these forced labor programs are triply unfair. First, they extract valuable work from citizens while stripping them of fair treatment and respect. Second, they perpetuate an unjust definition of voluntary unemployment. The proper test for willingness to work is willingness to work at a minimally decent job, not willingness to work for free without labor protections. Third, by creating a class of unprotected, coerced labor, they undermine the labor market for everyone. Employers have every incentive to substitute this new labor force for ordinary employees, or to extract concessions from workers by threatening to replace them.  New York City did both under Mayor Rudy Giuliani, who cut unionized public sector jobs while turning to a massive workfare program to maintain services.

Welfare reform taught antipoverty advocates to take low-wage work and unemployment seriously. Today, we must take that line of thinking one step further to include racialized mass incarceration, not just as a barrier to good jobs but as an enforcer of bad ones.

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Why Ending On-Call Scheduling Benefits Workers and Businesses https://talkpoverty.org/2015/11/25/on-call-scheduling-workers/ Wed, 25 Nov 2015 14:19:10 +0000 http://talkpoverty.org/?p=10482 Just last month, Urban Outfitters became the newest addition to a growing list of retailers that have ended the use of on-call scheduling for their employees. This practice, which requires employees to plan their lives around the mere possibility of having to work, has been subjected to an investigation from the New York Attorney General’s office and damning stories in the press.

Sure, the fact that Urban Outfitters and other retailers such as The Gap, J. Crew, Bath & Body Works and Victoria’s Secret are nixing an abusive practice is laudable. In addition to heading off potential legal trouble, their decisions over the past several months demonstrate that companies are listening to the needs of their employees and the questions being raised by customers.

But let’s not let these headlines fool us into thinking that all is well in the retail industry. Despite Urban Outfitters abandoning the practice, many large profitable restaurant and retail chains continue to intentionally deny employees more hours and use scheduling systems that wreak havoc on their ability to take care of their families.

For example, it’s common for employees to find out whether or not they need to work a shift mere hours before they are scheduled to start. In fact, almost half of the service industry employees surveyed in Washington, D.C. reported that they first learned of their work schedules less than one week in advance. Nearly one-third received less than 24 hours’ notice of schedule changes.

And the problem goes beyond not knowing when you’ll work. It’s also about not knowing how much you’ll work. Plenty of companies force their employees to keep their schedules open with the possibility of being scheduled full-time, but then only assign and compensate workers for part-time hours. And being sent home before the end of a scheduled shift is then passed off as a natural part of the job.

These practices add a whole new level of volatility to people’s lives. Not knowing when you’ll work from week to week can make it difficult or men and women to arrange child care, pursue education or training, or hold down a second job to make ends meet. It’s also next to impossible to budget when you don’t know if you’ll be scheduled for 10 hours or 40, or if you’ll be sent home an hour early each day.

It is possible for businesses to be productive while allowing their employees to lead stable, meaningful lives

Luckily, we’re making strides so that the lives of the people who ring up our purchases and serve our food are less turbulent.

In San Francisco, community leaders, labor advocates and retail employees came together and enacted the first set of comprehensive and meaningful standards that would address this issue. Now, when an employer cancels an on-call shift with less than 24 hours’ notice, they must pay the employee two to four hours. The new rules also mandate that schedules are posted two weeks ahead of time and that the nation’s biggest and most profitable retailers must provide part-time employees with more access to hours before hiring additional part-time workers. Acknowledging that scheduling and hours are just part of the picture, the organizers of this initiative also worked to successfully raise San Francisco’s minimum wage to $15.

This victory has inspired similar efforts in Washington, D.C. and Massachusetts. On the national level, the Schedules That Work Act would ensure that everyone has the right to request a predictable schedule.

And so, as this momentum grows, business owners would be wise to look to their colleagues to see the benefits of consistent scheduling for both their employees’ livelihoods and their business’s productivity.

Take Costco: in addition to offering better rates of pay and benefits than competitors, it guarantees many part-time employees a minimum of 24 hours and provides two weeks of advance notice for scheduling. As a result of these policies, the company boasts one of the lowest turnover rates in the industry.

Small business owners have also adopted stable scheduling. Tony Lucca, the owner of two D.C. restaurants, gives his employees their schedule a month in advance and uses an online scheduling system that gives employees a say in when they work. And Gina Schaefer, the owner of a number of Ace Hardware stores in the District, makes sure shifts are made available to part-time employees first before hiring anyone new.

We know that it is possible for businesses to be productive while allowing their employees to lead stable, meaningful lives. So yes, let’s cheer on the companies who are ending on-call scheduling. But as Black Friday approaches, let’s not forget that the real change will come when all families in our community achieve the strong wages, reliable hours, and sane schedules that they need in order to build a good life.

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Instead of Shaming the Poor, Let’s Raise the Minimum Wage https://talkpoverty.org/2015/09/29/poor-shaming-minimum-wage/ Tue, 29 Sep 2015 16:04:23 +0000 http://talkpoverty.org/?p=10101 Continued]]> Yesterday I joined Fox and Friends for what they billed, in typical Fox News fashion, as a “fair and balanced debate.” The topic was a Maine mayor’s call to publish the names and addresses of all recipients of public assistance online as a sort of “poverty-offender registry.” Mayor Robert MacDonald of Lewistown announced this ugly proposal last week in an op-ed in the local Twin-City Times, offering the justification that Mainers “have a right to know how their money is being spent.”

My conservative counterpart on the show—Seton Motley, a one-man political operation he calls Less Government (hey, at least he gets points for being straightforward)—defended “shaming the people who are sitting on welfare” as a tactic to get them off of assistance, and to crack down on what he termed “widespread welfare abuse.”

As I pointed out when my turn came to speak, the real shame is that our nation’s minimum wage is a poverty wage. In the late 1960s, the minimum wage was enough to keep a family of three out of poverty. Had it kept pace with inflation since then, it would be nearly $11 today, instead of the current $7.25 per hour.

Video provided by Media Matters for America

And it’s not just workers earning the minimum wage who are struggling: Working families have seen decades of flat and declining wages, while those at the top of the income ladder capture an ever-rising share of the gains from economic growth.

As a result, millions of Americans are working harder than ever while falling further and further behind. And many are juggling two and three jobs in an effort to make enough to live on: 7 million Americans are working multiple jobs. (Remember Maria Fernandes, the New Jersey woman who died in her car after trying to get a few hours of sleep in between her four jobs?)

Many low-wage workers need to turn to public assistance to make ends meet. In fact, researchers at Berkeley found that the public cost of low wages is more than $152 billion annually, in the form of Supplemental Nutrition Assistance Program (SNAP), the Earned Income Tax Credit (EITC), Medicaid, and other work and income supports that workers must rely on when wages are not enough to live on. The researchers also find that more than half—56 percent—of combined federal and state spending on public assistance goes to working families.

Contrary to conservatives’ claims that a bump-up in the minimum wage would “kill jobs,” a large body of research shows that past minimum wage increases at the federal, state, and local levels have boosted earnings and cut poverty among working families, without leading to job loss.

Past minimum wage increases have boosted earnings and cut poverty among working families, without leading to job loss.

And it’s not just teenagers earning extra spending money who stand to benefit from raising the minimum wage. The average age of workers who would get a raise is 35—and more than 1 in 4 have kids. (Then again, Motley went so far as to say that people earning the minimum wage shouldn’t have children… Oy.)

If Mayor MacDonald, Motley, and their cheerleaders in the right-wing media really want to shrink spending on public assistance, then instead of wasting their time shaming people who are struggling to make ends meet—which, of course, is the sole purpose of Fox News’s recurring segment “Entitlement Nation”—they’d be wise to embrace raising the minimum wage. Indeed, my colleague Rachel West has found that raising the federal minimum wage to $12 an hour, as Senator Patty Murray and Congressman Bobby Scott have proposed, would save a whopping $53 billion in SNAP in the coming decade—more savings than the $40 billion in cuts proposed by House Republicans during the last round of Farm Bill negotiations. In Maine, the single-year savings in SNAP from a minimum wage hike would top $31 million.

Whether or not Mayor MacDonald’s widely criticized—and likely illegal—proposal for a public assistance shaming database gains traction—even in a state that’s been leading the nation when it comes to policies that punish its citizens for being poor—we should see his and Fox News’ poor-shaming for what it is: an attempt to divert attention away from the real causes of poverty, as well as the solutions that would dramatically reduce it.

For pushing harmful policies and bullying people who are struggling to provide for their families in an off-kilter economy, Mayor MacDonald and his friends in the right-wing media are the ones who should be ashamed.

 

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On My Way to Meet Pope Francis https://talkpoverty.org/2015/09/22/way-meet-pope-francis/ Tue, 22 Sep 2015 19:06:20 +0000 http://talkpoverty.org/?p=10030 I am a 60-year-old proud mother and grandmother, and I am on my way to meet Pope Francis.  My heart is pounding with excitement in anticipation of this once-in-a-lifetime moment. As I sit on a train to Washington, where I will attend a ceremony welcoming the Pope to the White House, my nerves increase and I ask myself: What will I say to His Holiness?

I am a devout Catholic so I will want to talk about religion. And there are other issues near and dear to me such as immigration and worker’s rights. But since my time with the Pope will be brief, I will focus on one issue—poverty.  Pope Francis is a champion of the poor, and this is a subject I know well. I am among the one million people in New Jersey living in poverty.

For more than a decade, I have worked as a cabin cleaner at Newark Liberty International Airport. I can barely afford to pay the rent for a modest apartment I share with a roommate in Newark, much less buy a ticket to fly on any of the airplanes I clean every day. Meanwhile, airline profits and CEO pay are soaring.

My faith in God gives me the strength to carry on and fight not just for myself, but for all low-wage workers.

As a Catholic, I believe that “blessed are those who hunger and thirst for righteousness, for they will be filled.” I know that we need to fight for just wages. So even after working a night shift of labor-intensive work, with aches and pains in my body, I’ve participated in marches and rallies with my union brothers and sisters. I also testify regularly at public meetings to call on NY/NJ Port Authority officials to follow through on their promise to raise the wage. We are still waiting. In the meantime, airport workers must work two or even three jobs to pay the bills because the $10.10 per hour we earn still leaves us below the federal poverty level for a family of four. And it’s not just airport workers—it’s fast-food workers, retail workers, and home care workers. That’s why the Fight for $15 movement has inspired so many of us to stand and fight together. Because “those who mourn, will be comforted.”

On the train, I am wearing a beautiful traditional dress from Peru, my native country. This dress reminds of me of that bittersweet moment when, tearfully, I said goodbye to my family and friends so that I could come to America and give my five children a better life. I will tell the Pope about this arduous journey and how my faith has carried me through difficult times—times when I went without food so my children could eat. I will tell him that despite hunger pains, faith has nourished my heart and soul. My faith in God gives me the strength to carry on and fight not just for myself, but for all low-wage workers who clock-in and out of work every day but still don’t earn enough to make ends meet. As the Pope said, “the poor shouldn’t be sacrificed on the altar of money.”

“Poverty in the world is a scandal,” Pope Francis said. “In a world where there is so much wealth, so many resources to feed everyone, it is unfathomable that there are so many hungry children, that there are so many children without an education, so many poor persons. Poverty today is a cry.”

Does the Port Authority hear our cries? Does America?

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New Census Data Demand Action on Inequality and Poverty https://talkpoverty.org/2015/09/17/census-data-poverty/ Thu, 17 Sep 2015 13:49:16 +0000 http://talkpoverty.org/?p=8240 The U.S. Census Bureau released data this week showing little to no improvement in poverty and family incomes in 2014, despite a falling unemployment rate.

This frustrating state of affairs is directly related to high levels of inequality and stagnant wages, which have kept poverty rates much higher than they should be given that we’ve had more than five straight years of economic growth. The problem is that despite workers’ increased productivity and higher levels of education, the economic gains have concentrated at the top of the income ladder, leaving workers with flat or declining wages and chronic economic insecurity.

It’s clear that we need more aggressive action on inequality and poverty. But, at the same time, the Census data also confirm the dramatic role that our social insurance and assistance programs play in protecting families from hardship and boosting economic security for low- and middle-income families.

For example, the Supplemental Poverty Measure, which takes into account a more comprehensive set of family resources and expenses, shows that last year Social Security lifted 25.9 million people out of poverty and the Earned Income and Child Tax credits kept 9.8 million people out of poverty. Similarly, the Supplemental Nutrition Assistance Program (SNAP) and affordable housing protected 4.7 million and 2.5 million people, respectively. Moreover, recent research shows that without our nation’s social safety net, the poverty rate would be nearly twice as high—with nearly 30 percent of Americans living in poverty!

The safety net assists working-age people across all levels of education. The combination of these programs—ranging from Social Security and Unemployment Insurance to nutrition assistance and tax credits for working-class families—boosted the average income of the most vulnerable workers by 22 percent.  For working-age people with a post-secondary education, average incomes increased by between 6 and 12 percent.

shareable for census

These policies don’t just lift families above our meager poverty line. They boost long-term employment, educational, and health outcomes for children, and increase family economic security in an economy that is increasingly only working for the wealthy few.

In order to build on the successes of these programs we need to act now and implement policies that we know work: boost wages and labor standards for low-wage workers and promote full employment; invest in nutrition, education, affordable housing, healthcare, and tax credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC); and remove barriers that keep people trapped in poverty such as our broken criminal justice system and predatory loans.

Thankfully, we’re seeing progress on many of these fronts.  We learned from the new data that last year the Affordable Care Act resulted in the largest drop in the uninsured rate since the Census Bureau began tracking it— there were 8.8 million fewer people without health insurance than in the preceding year.  There is now bipartisan momentum to reform the criminal justice system.  Workers are organizing for a higher minimum wage in states across the country.  Finally, a new overtime rule from the Obama administration would boost pay for millions of workers.

The bad news is that vital programs are at risk of cuts. Conservatives have already indicated that they will not make a routine fix to Social Security’s funding formula without extracting a pound of flesh through cuts to critical programs for people with disabilities. Key provisions in the EITC and CTC are set to expire in 2017; if Congress fails to act, it would push 16 million Americans into poverty or deeper into poverty. The House and Senate Republican Budgets deeply slash SNAP and Medicaid. And the tight caps and cuts to annual funding levels caused by sequestration and the Budget Control Act of 2010 have left critical investments such as those in affordable housing and education vulnerable to even deeper cuts.

Basic economic security would be weakened by conservative budget proposals this year, despite the fact that no policymaker’s district is immune from poverty. The tables below shows the poverty and child poverty rates in the districts represented by Members of the Senate Finance and House Ways and Means committees, which have jurisdiction over key antipoverty programs like Social Security, and the Earned Income and Child Tax credits.

The new Census data underscore that we still have a lot of work to do when it comes to reducing poverty and inequality. We know the good policies that we need right now.  It’s time to turn up the heat and call on all of our representatives to make good policy a reality.

House Committee on Ways and Means

Name Party District Overall Poverty Rate Child Poverty Rate
Paul Ryan R WI-1 11.75% 17.47%
Sam Johnson R TX-3 7.14% 8.96%
Kevin Brady R TX-8 12.57% 17.02%
Devin Nunes R CA-22 21.46% 28.46%
Pat Tiberi R OH-12 10.25% 11.58%
Dave G. Reichart R WA-8 10.35% 13.15%
Charles W. Boustany Jr. R LA-3 17.61% 23.20%
Peter Roskam R IL-6 5.72% 7.73%
Tom Price R GA-6 9.63% 14.13%
Vern Buchanan R FL-16 11.99% 19.19%
Adrian Smith R NE-3 12.98% 16.77%
Lynn Jenkins R KS-2 15.30% 23.23%
Erick Paulsen R MN-3 6.43% 8.96%
Kenny Marchant R TX-24 10.61% 16.48%
Diane Black R TN-6 14.81% 20.04%
Tom Reed R NY-23 17.17% 22.97%
Todd Young R IN-9 14.42% 17.63%
Mike Kelly R PA-3 13.26% 19.22%
Jim Renacci R OH-16 7.63% 10.03%
Patrick Meehan R PA-7 6.63% 8.16%
Kristi Noem R SD-At Large 14.17% 17.67%
George Holding R NC-13 10.60% 14.77%
Jason Smith R MO-8 20.56% 28.08%
Bob Dold R IL-10 9.79% 12.87%
Sander M. Levin D MI-9 14.89% 23.31%
Charles B. Rangel D NY-23 29.77% 38.90%
Jim McDermott D WA-7 12.31% 12.68%
John Lewis D GA-5 23.95% 38.13%
Richard E. Neal D MA-1 15.46% 23.03%
Xavier Becerra D CA-37 23.24% 32.47%
Lloyd Doggett D TX-35 25.34% 35.91%
Mike Thompson D CA-5 11.83% 14.40%
John B. Larson D CT-1 11.74% 16.62%
Earl Blumenauer D OR-3 18.19% 23.00%
Ron Kind D WI-3 13.82% 15.82%
Bill Pascrell Jr. D NJ-9 17.25% 24.03%
Joseph Crowley D NY-14 17.57% 24.60%
Danny Davis D IL-7 25.00% 37.13%
Linda Sanchez D CA-38 11.53% 14.47%

 Senate Committee on Finance

Name Party State Overall Poverty Rate Child Poverty Rate
Orrin G. Hatch R UT 11.73% 13.00%
Chuch Grassley R IA 12.24% 14.92%
Mike Crapo R ID 14.85% 18.53%
Pat Roberts R KS 13.56% 17.37%
Michael B. Enzi R WY 11.19% 12.10%
John Cornyn R TX 17.17% 24.31%
John Thune R SD 14.17% 17.67%
Richard Burr R NC 17.22% 23.96%
Johnny Isakson R GA 18.30% 26.09%
Rob Portman R OH 15.84% 22.54%
Patrick J. Toomey R PA 13.60% 18.99%
Dan Coats R IN 15.24% 21.18%
Dean Heller R NV 15.24% 21.74%
Tim Scott R SC 17.99% 26.73%
Ron Wyden D OR 16.55% 21.10%
Charles E. Schumer D NY 15.93% 22.24%
Debbie Stabenow D MI 16.20% 22.19%
Maria Cantwell D WA 13.19% 17.01%
Bill Nelson D FL 16.50% 23.50%
Robert Menendez D NJ 11.10% 15.67%
Thomas R. Carper D DE 12.48% 17.51%
Benjamin L. Cardin D MD 10.11% 12.70%
Sherrod Brown D OH 15.84% 22.54%
Michael F. Bennett D CO 12.04% 15.12%
Robert P. Casey, Jr. D PA 13.60% 18.99%
Mark R. Warner D VA 11.80% 15.47%
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After Labor Day, Dig In for the Fight Ahead https://talkpoverty.org/2015/09/08/labor-day-dig-fight-ahead/ Tue, 08 Sep 2015 13:09:57 +0000 http://talkpoverty.org/?p=8179 Between cookouts and last outings to the pool, Labor Day weekend provided all of us a chance to celebrate the end of summer. But Labor Day should also be cause for celebration of another kind: the very reason that we have weekends off, for example.  As we take stock after Labor Day, there’s much that we have accomplished, much to be grateful for, and yet so much work remains if we are to create a path to economic stability for all of us.

This Labor Day, nearly a quarter of Americans who work in the private sector couldn’t spend time with their families because they don’t have access to paid holiday time. This is just one symptom of an economic system that is out of whack—so much so that people working full-time, or two or even three jobs, can’t make ends meet. While well-connected, handsomely paid CEOs have the flexibility they need to spend time with their families and provide their children with resources well beyond the basics—too many of us are barely getting by (if that) and living to work, rather than working to live full lives.

For nearly 40 years, Americans have been working harder and more productively but aren’t seeing any change in how much they take home at the end of the week. A study from the Economic Policy Institute released this week found that many parents’ paychecks aren’t enough to cover their family’s most basic needs, and that working full-time at the federal minimum wage isn’t enough for a parent with one child to get by anywhere in the country.

Let’s celebrate the progress we’ve made together and dig in with resolve and determination for the fight ahead.

Even as the economy has turned around, most Americans have failed to see improvements in their pay, according to a recent study by the National Employment Law Project. This is especially true for those who work in the retail, food service, and home-care industries, which already are among the lowest paying sectors and have seen the greatest declines in take-home pay. All the while, more and more corporations are leaving the people who cook our food and stock our shelves without the right to stand together to demand better wages and working conditions. And, profitable corporations like McDonald’s and Walmart are keeping their employees from working enough hours to pay the bills and making their lives impossible to plan.

Despite our unbalanced economy and the reality of poverty – as well as all of the forces working against the stability families so desperately need – the past few months have demonstrated the enormous potential for change that has arrived.

Take the minimum wage wins in Los Angeles, Seattle, Kansas City, St. Louis and Birmingham; and the wage increases for home-care providers in Massachusetts and fast-food employees in New York. Or look at cities like San Francisco that have enacted measures to ensure that massive retailers provide more hours to the clerks and cooks who work for them so that they can better pay the bills. President Obama has moved to make sure nearly 5 million men and women will soon have access to stronger overtime pay, and federal contractors will have to provide paid sick leave. And recent legal decisions have made it possible for two million home-care providers to receive a minimum wage and overtime pay after relentless organizing by the women who care for our families and want to better care for their own families, too. Finally, the National Labor Relations Board has just ruled that contractors and franchise employees can organize and hold their employers accountable for unfair treatment.

The forces that keep working people living on the brink are beginning to fall apart, and it’s not a mystery as to why: People have been standing together and pressing for change. Still, there is so much work that remains. Coming off of Labor Day, let’s celebrate the progress we’ve made together – and dig in with resolve and determination for the fight ahead.

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Why a Pro-Worker Agenda is an Anti-Poverty Agenda https://talkpoverty.org/2015/09/04/pro-worker-agenda-anti-poverty-agenda/ Fri, 04 Sep 2015 13:05:58 +0000 http://talkpoverty.org/?p=8154 Labor Day is a time to honor America’s workers and their contributions to our economy. It is also a time to reflect upon the state of workers’ economic position, and how that position has faltered in recent decades. Except for a short period of across-the-board wage growth in the late 1990s, 2015 marks a general 36-year trend of broad-based wage stagnation and rising inequality in our country, which has had real, adverse effects on low- and middle-income households. This anemic wage growth is closely tied to the stalled progress in reducing poverty since 1979, as many poor people work and their incomes are increasingly dependent upon work. Therefore, along with strengthening the safety net, the goals of anti-poverty advocates should be one in the same with pro-worker advocates: to reverse the decades-long trend of wage stagnation and promote real wage growth for all Americans.

Despite dramatic gains in educational attainment, wages have failed to grow for those at the bottom (and middle) over the last four decades. At the same time, low income household incomes have become increasingly dependent on wages. The figure below shows the major sources of income for non-elderly households in the bottom fifth of the income distribution from 1979 to 2011, using the CBO’s measure of comprehensive income. It shows that incomes of the bottom fifth are increasingly dependent on ties to the workforce. Wages, employer-provided benefits, and tax credits that are dependent on work (such as the EITC) made up 68.3 percent of non-elderly bottom-fifth incomes in 2011, compared with only 58.2 percent in 1979. While government in-kind benefits from sources such as the Supplemental Nutrition Assistance Program (formerly food stamps) and Medicaid increased from 13.2 percent of these bottom-fifth incomes in 1979, to 19.5 percent in 2011, cash transfers such as welfare payments have declined 9.2 percentage points (from 18.6 percent to 9.4 percent).

For better or worse, the safety-net system has become increasingly tied to work through programs such as the EITC and the child tax credit, which only benefit households with labor earnings. While other transfers and tax credits are clearly important to families in the bottom fifth and should be strengthened, it is crucial to recognize that this group depends on pay from the labor market for the majority of their income.

In addition, despite what some policymakers and pundits might have us believe, a significant share of poor people work. The figure below shows the population of those in poverty segmented into various labor status categories. The top bar shows that 35.2 percent of the poor between the ages of 18 and 64 in 2013 were considered not currently eligible to work because they are retired, going to school, or disabled. The other 64.8 percent of working-age poor are currently eligible to work. The second bar shows us that among these currently-eligible workers, 62.6 percent are working and 44.3 percent are working full-time. Of the working-age poor eligible for employment, 37.4 percent are not working—a share that includes the 3.3 million unemployed poor people seeking a job.

On Labor Day this year, it’s important to recognize the integral role of wage growth in poverty reduction. Although hourly wage growth has stagnated for the vast majority since 1979, this didn’t have to happen—there was room in the economy for all people to see wage growth, as economy-wide productivity continuously reached new heights. In fact, if all wages had grown at the same rate as productivity since 1979 (in other words, had economic gains been more widely shared with low- and moderate-wage workers), 7.1 million fewer people would be poor and the market-based non-elderly poverty rate would be 2.6 percentage points lower today, or 13.5 percent. If we had also targeted full employment through Federal Reserve policy, for instance, the non-elderly market-based poverty rate would be 4.2 percentage points less and 11.2 million fewer people would be poor.

Policies that boost employment and wages are vital and underappreciated tools for reducing poverty. To gain momentum in the fight against poverty, fiscal transfers that help low-income families almost surely need to be accompanied by policies that foster widely shared wage growth. Without wage gains, the tax-and-transfer system needs to work harder every year simply to keep poverty rates from increasing. This Labor Day, let’s focus on the things we can do that will both help workers and reduce poverty, such as strengthening workers’ bargaining rights, raising the minimum wage, eliminating the tipped minimum wage, making sure the new overtime threshold quickly gets into place, enforcing wage theft rules, fighting for wider access to paid sick and family leave, and urging the Fed to target full employment.

People in poverty are working, now we need to make the economy work for them.

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How Low Child Care Wages Put All Children at Risk https://talkpoverty.org/2014/12/12/low-child-care-wages/ Fri, 12 Dec 2014 14:00:49 +0000 http://talkpoverty.abenson.devprogress.org/?p=5530 Continued]]> Many parents who have faced the daunting task of finding quality, affordable child care have a list of things they look for when they visit a prospective program. Perhaps that list includes an inviting classroom full of books and educational materials. Maybe a playground and a warm and nurturing teacher. But how many parents look at the wages of their child care provider? And how many question whether their child care provider is living in poverty?

A new study entitled Worth Work, STILL Unlivable Wages finds that wages in the child care industry as so low that many providers live in poverty.  The mean hourly wage of a child care worker in 2013 was $10.33 an hour or $21,490 annually. This puts child care workers in the Bureau of Labor Statistics’ lowest income tier along with parking lot attendants and dry-cleaners, meaning that most child care workers live in poverty.

The combination of low wages and the rising cost of living means that many child care workers aren’t paid enough to meet their families’ most basic needs.  In fact, more than 46 percent of child care workers are in families using one of the four major social support programs—almost double the rate of use in the U.S. workforce overall. Poverty wages for child care workers is a problem in and of itself, but the impact extends well beyond workers. The 12 million children who attend child care are affected as well.

Our most vulnerable children are often facing stress from multiple sources.

Child care workers who endure the stressors of living in poverty are more likely to experience toxic stress, depression, and chronic health issues. As the number of children spending time in child care settings has increased so too has our knowledge of the link between adult caregiving and early childhood brain development. Study after study has shown the connection between better-paid staff and higher quality care. The instability and stress experienced by caregivers dealing with economic insecurity or poverty shapes their ability to provide enriching and nurturing environments for children. Often, it can result in a decreased ability to provide supportive spaces for children to develop and learn.

Importantly, high quality care is often most powerful in the lives of low-income children and children of color who already enter school behind their wealthy and/or white peers. But we also know that low-income children are more likely to be in low quality child care settings. Research shows that children who attend low quality child care settings—with high turnover or high numbers of stressed out staff—are less competent in language and social development. This means our most vulnerable children are often facing stress from multiple sources.

Ultimately, we must do something to better empower the 2 million women earning a living in this sector. Changing the course is far from impossible. Decades ago, the Department of Defense made major changes to its internal child care system, including paying child care workers on par with other employees with similar education and qualifications. This reform increased pay by about 76 percent over the past 25 years. As a result, they see far less turnover and consistently receive higher quality ratings.

It’s time that we pay those caring for our children a fair wage. And that starts with parents asking the question: how much does my child care provider make? Does caring for my family force her family to live in poverty?

 

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Will Louisville Be Next to Raise the Minimum Wage? (Updated) https://talkpoverty.org/2014/11/20/louisville-minimum-wage/ Thu, 20 Nov 2014 14:00:36 +0000 http://talkpoverty.abenson.devprogress.org/?p=5374 Continued]]> UPDATE (December 19): Louisville just became the first southern city to raise the minimum wage from $7.25 to $9 an hour. The increase will take effect by 2017. Louisville is the 12th U.S. city to raise the minimum wage this year.  Congratulations to Councilwoman Attica Scott, Kentucky Jobs with Justice, and the many allies who have worked on this issue.

Linda lives at a local shelter with two children. She works full-time in the health care industry and earns $8 per hour, resulting in a yearly income of $16,640 before taxes. Even in the unlikely event Linda were to find an apartment for less than $600 per month with cheap utilities, she would still have only $200 left for all of her other monthly bills, including food, clothing, transportation, child care, and health care. Finding an apartment she can afford also might mean living in a neighborhood where it is difficult to get to work.

Linda’s story of struggling from paycheck-to-paycheck is one that we hear far too often in Louisville and across the nation. Unfortunately, Congress and our state legislature have both failed to raise the current $7.25 an hour minimum wage. Now, low-wage workers in Louisville have placed their hope in the hands of the Louisville Metro Council and Mayor Greg Fisher.

The current proposal supported by workers and advocates would gradually increase Louisville’s minimum wage over three years to $10.10. This is only a start, since it is significantly less than the $11.48 living wage that former Mayor Jerry Abramson called for during his tenure. Moreover, the average monthly rent in Louisville is $694 and families will need to earn $13 per hour in order to afford housing and other household expenditures.  Like Linda, more than half of the adults living in Louisville homeless shelters are employed, some working full-time.

With more than 18 percent of Louisvillians now living below the poverty line of $18,552 annually for a family of three, we must do what we can locally to raise the minimum wage so it is no longer a poverty wage. An estimated 22 percent of low-wage workers in Louisville would benefit from a minimum wage increase, including 62,500 workers who make less than $10.10, and another 24,800 workers who would indirectly benefit once wage scales were adjusted upward.

And while the opposition would have us believe that undeserving teenagers working in the fast food industry will primarily benefit from an increased minimum wage, the fact is that among affected workers the average age is 35 years old; more than one-third are at least 40 years old; and most of the workers are women.  I hear the opposition clearly when they say that there may be minimal job loss, or that raising the minimum wage will not end poverty; and I understand that some businesses may have to increase their prices.

But the cost of goods and services is already increasing every year without the benefit of a minimum wage increase. And while raising the minimum wage will not end poverty, it will indeed help move some people out of poverty, and others who are on the cusp of poverty will no longer need assistance.

In order to help businesses adapt to increased wages, sponsors of the Louisville minimum wage legislation intentionally designed it to increase gradually over three years. We are committed to supporting businesses and we have proven that repeatedly by providing economic development incentives. During the last decade, we have used tax dollars to give tax breaks to the Yum Center, General Electric, Kentucky Kingdom, Colonial Gardens, and Cordish Companies, just to name a few beneficiaries. Now we are asking businesses to invest in their workers.  I know that there are areas of agreement that should be our focus: reducing income inequality, creating job stability, establishing fair wages, promoting compassion, and reducing poverty. We can get there and raising the minimum wage is a good start.

As the Labor and Economic Development Committee of the Louisville Metro Council prepares to vote on the minimum wage ordinance on December 4, I hope that we keep in mind that we simply cannot afford the price of poverty and we cannot afford to ignore working families. We can and we should raise the wage in Louisville.

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It Takes a Village to Enforce Fair Wage Laws https://talkpoverty.org/2014/10/24/fair-wage-laws/ Fri, 24 Oct 2014 13:00:13 +0000 http://talkpoverty.abenson.devprogress.org/?p=5092 Continued]]> Seattle made history in June when it became the first major city in America to pass a livable minimum wage of $15 an hour. Los Angeles, Chicago, New York and other cities around the country are taking steps in that direction, too.

But winning a robust minimum wage is only half of the battle.

Last month, Seattle again made history when Mayor Ed Murray announced the creation of a citywide Division of Labor Standards Enforcement to enforce its minimum wage law and other labor standards. A key feature of the new division is that it utilizes community groups as partners in outreach and to educate workers about their rights.

Because wage theft is so common in industries that employ minimum wage workers, only an effective, strategic enforcement system will ensure that workers receive the new wage they are entitled to.  Fortunately, we know how wage theft happens and we know the kinds of enforcement techniques that result in low-wage workers being paid their due.

A landmark 2009 study of nearly 4,500 low-wage workers in three of the cities currently considering a minimum wage increase—Los Angeles, Chicago and New York—found that more than two in three workers experienced at least one pay-related violation during their previous work week. Of these workers, one in four was paid less than the minimum wage, and three in four were not paid their overtime wages. Wage theft costs workers and their families in these three cities an estimated $56 million every week—that’s $56 million stolen weekly from workers’ pockets instead of helping their families and communities.

We also know the people who are the victims of wage theft. Government statistics and private studies show that they work in restaurants and hotels, retail and grocery stores. They clean office buildings and care for our children and elders. They build our homes.

Relying on government alone to right these wrongs simply doesn’t work—government has neither the resources nor the manpower. The U.S. Department of Labor has slightly more than 1,000 investigators who are responsible for protecting the rights of 135 million workers in 7.5 million businesses nationwide. Things aren’t any better at the state level, where the ratio of investigators to workers is approximately 1 to 150,000.

We also know that enforcement doesn’t work if it relies solely on workers filing complaints. A study of the largely complaint-based federal system found that for every one complaint received, there are more than 100 other labor-standards violations that go undetected, allowing unscrupulous employers to fly under the radar. One reason workers don’t complain is that nearly half of those who suffer wage theft also face retaliation for speaking up about it.

The fact is that enforcement of existing laws is so poor that the average employer has a less than 0.001 percent chance annually of being investigated by the Department of Labor’s Wage and Hour Division.  That doesn’t exactly strike fear into the hearts of scofflaws.

Only an effective, strategic enforcement system will ensure that workers receive the new wage they are entitled to.

But just as surely as we know the challenges to effective enforcement, we also know how we can change this status quo and secure compliance—through an enforcement agency that has strong penalties at its disposal to deter and correct violations.  We also know from lessons learned in places like Los Angeles, San Francisco, Florida, and New York—in industries ranging from construction to hospitality to janitorial to agriculture—that community groups must play a critical role in enforcement.

Successful enforcement partnerships take advantage of the strengths of both government and community groups. City agencies have the power to file complaints, assess significant penalties, and take wage thieves to court. But even the best-trained investigator can’t possibly know the industries in every city and can’t be in all places at once. Community groups do and are.

Non-profits—based in our neighborhoods and knowledgeable about their industries, languages and cultures—can help spread the word to both employers and employees about minimum wage protections and other labor standards. Community based organizations can also support victims of wage theft who—fearing retaliation—don’t want to take a complaint directly to a city official. They can interview workers and witnesses and assemble the necessary proof in an atmosphere of trust.

Community groups also have vital information that supports strategic enforcement. It is an inefficient use of limited enforcement resources for investigators to wait for complaints to come in, or to investigate every industry equally. Existing violation data and the experiences of the US Department of Labor demonstrate that by focusing attention on high-violation industries and fractured employment relationships—like subcontracting and franchising—enforcement agencies are much more effective in discovering abuses and taking action to stop them. Community groups have contact with working people every day and can help city agencies investigate known violators. Business can play a role, too, by pointing out bad actors who gain a competitive advantage over responsible employers by breaking the law.

In short, through these partnerships, city enforcers are able to focus on correcting and deterring violations. They can assess penalties and award back wages to a degree that makes it very clear that our cities and states will no longer tolerate cheaters.

We can make the promise of a higher minimum wage a reality for millions of our neighbors and co-workers.  By establishing a Division of Labor Standards Enforcement and funding community-based outreach, Seattle is moving in the right direction.  Other cities should take note.

 

 

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Top 10 Solutions to Cut Poverty and Grow the Middle Class https://talkpoverty.org/2014/09/17/top-10-solutions-cut-poverty-grow-middle-class/ https://talkpoverty.org/2014/09/17/top-10-solutions-cut-poverty-grow-middle-class/#comments Wed, 17 Sep 2014 12:30:49 +0000 http://talkpoverty.abenson.devprogress.org/?p=3711 Yesterday, the U.S. Census Bureau released its annual figures on income, poverty, and health insurance. It revealed that four years into the economic recovery, economic insecurity remains widespread, and low- and middle-income workers have seen no significant wage growth over the past decade.

With the poverty rate at an unacceptable 14.5 percent and economic inequality stuck at historically high levels, one might assume that chronic economic insecurity and an off-kilter economy are the “new normal”—that nothing can be done to fix it.

But there is nothing “normal” or inevitable about more than 45 million Americans living in poverty. It is the direct result of policy choices. With different policy choices, we will see a more equitable economy—it’s as simple as that. 

Here are 10 steps Congress can take to cut poverty, boost economic security, and expand the middle class.

In the late 1960s, the minimum wage was enough to lift a family of three out of poverty. Not so anymore.

1) Create jobs.  

The best pathway out of poverty is a well-paying job. To get back to prerecession employment levels, we must create 5.6 million new jobs. To kick-start job growth now, the federal government should invest in our infrastructure by rebuilding our bridges, railways, roads, ports, schools and libraries, neighborhood parks, and abandoned housing; expanding broadband; develop renewable energy sources; and make other commonsense investments that create jobs and boost our national economy. For example, extending federal unemployment insurance would have created 200,000 new jobs in 2014. But Congress failed to act, leaving 1.3 million Americans and their families without this vital economic lifeline. We should renew federal unemployment insurance, and also build on proven models of subsidized employment to help the long-term unemployed and other disadvantaged workers re-enter the labor force.

2) Raise the minimum wage.

In the late 1960s, the minimum wage was enough to lift a family of three out of poverty.  Not so anymore. The current federal minimum wage of $7.25 is a poverty wage, and had it been indexed to inflation it would be $10.86 per hour today. Raising the minimum wage to $10.10 an hour and indexing it to inflation would lift more than 4 million Americans out of poverty. Nearly one in five children would see their parent get a raise. Recent action by states and cities shows that boosting the minimum wage reduces poverty and increases wages.

3) Increase the EITC for childless workers.

The Earned Income Tax Credit (EITC) lifted more than 6.5 million Americans—including 3.3 million children—above the poverty line in 2012. Kids who receive the EITC are also more likely to graduate from high school and have higher earnings in adulthood. Yet childless workers largely miss out on the benefit—their maximum credit is less than one-tenth that awarded to a worker with two children. Policymakers across the political spectrum have called for boosting the EITC. Importantly, this policy change should be combined with a raise in the minimum wage—one is not a substitute for the other.

4)     Support pay equity.

With female full-time workers earning just 78 cents for every dollar earned by men, we must take action to ensure equal pay for equal work. Closing the gender pay gap would cut poverty in half for working women and their families and add nearly half a trillion dollars to the nation’s gross domestic product.  Passing the Paycheck Fairness Act to hold employers accountable for discriminatory salary practices would be a key first step.

5)     Provide paid leave and paid sick days.

The United States is the only developed country without paid family leave and paid sick days, making it exceedingly difficult for millions of American workers to care for their families without having to sacrifice needed income. Paid leave is an important antipoverty policy—having a child is one of the leading causes of economic hardship. Additionally, nearly 4 in 10 private sector workers—and 7 in 10 low-wage workers—do not have a single paid sick day, so they must forgo needed income in order to care for a sick child or loved one.  The Family and Medical Insurance Leave Act, or FAMILY Act, would provide paid leave protection to workers who need to take time off due to their own illness or that of a family member, or after the birth of a child. And the Healthy Families Act would enable workers to earn up to seven job-protected sick days a year.

6)     Establish work schedules that work.

Low-wage and hourly jobs increasingly come with unpredictable and constantly shifting work schedules. These erratic schedules make accessing childcare even more difficult and leave workers uncertain about their monthly income. Further, things many of us take for granted—such as scheduling a doctor’s appointment or even a parent-teacher conference at school—become herculean tasks. The Schedules That Work Act would require that workers receive two weeks advance notice of their schedules, create and protect an employee’s right to request needed schedule changes, and provide guaranteed pay for cancelled or shortened shifts—important first steps towards making work-family balance possible for all workers.

7)     Invest in affordable, high-quality childcare and early education.

The lack of affordable, high-quality childcare serves as a major barrier to reaching the middle class. Federal child care assistance reaches only 1 in 6 eligible children. One year of childcare for an infant costs more than a year of tuition at most states’ four-year public colleges. Poor families who pay out of pocket for childcare spend an average of one-third of their incomes.  Boosting investments in Head Start and the Child Care and Development Block Grant, as well as passing the Strong Start for America’s Children Act—which would invest in preschool, high-quality childcare for infants and toddlers, and home visiting services for pregnant women and mothers with infants—will help families obtain the childcare they need in order to work, and improve the future economic mobility of America’s children.

8)     Expand Medicaid.

Since it was signed into law in 2010, the Affordable Care Act has expanded access to high-quality, affordable health coverage for millions of Americans. However, 23 states refuse to expand their Medicaid programs to cover adults up to 138 percent of the federal poverty line, which makes the struggle for many families on the brink much harder. Expanding Medicaid means more than just access to healthcare—it frees up limited household income for other basic needs, like paying rent and putting food on the table. Having health coverage is also an important buffer against the economic consequences of illness or injury—unpaid medical bills are the leading cause of bankruptcy. Studies link Medicaid coverage not only to improved health, improved access to healthcare services, and lower mortality rates, but also to reduced financial strain. It’s time for all states to expand Medicaid.

9)     Reform the criminal justice system and enact policies that support successful re-entry

The United States incarcerates more of its citizens than any other country in the world. Today, more than 1.5 million Americans are behind bars in state and federal prisons, a figure that has increased fivefold since 1980. The impact on communities of color is particularly staggering: One in four African American children who grew up during this time period have had a parent incarcerated.

Mass incarceration is a key driver of poverty. When a parent is incarcerated, his or her family must find a way to make ends meet without a necessary source of income. Additionally, even a minor criminal record can result in lifelong barriers to climbing out of poverty. For example, people with criminal records face substantial barriers to employment, housing, education, public assistance, and building good credit. More than 90 percent of employers now use background checks in hiring, and even an arrest without a conviction can prevent an individual from getting a job. The “one strike and you’re out” policy used by public housing authorities makes it difficult for individuals with even decades-old criminal records to obtain housing, and can obstruct family reunification. And in more than half of U.S. states, individuals with felony drug convictions are burdened with a lifetime ban on receiving certain types of public assistance.

In addition to common-sense sentencing reform to ensure that we no longer fill our nation’s prisons with non-violent, low-level offenders, policymakers should explore alternatives to incarceration, such as diversion programs for individuals with mental health and substance abuse challenges. We must also remove barriers to employment, housing, education, and public assistance. A decades-old criminal record should not consign an individual to a life of poverty.

10)  Do no harm

The across-the-board spending cuts known as sequestration—which took effect in 2013—slashed funding for programs and services that provide vital support to low-income families. Sequestration also cost the American economy as many as 1.6 million jobs between mid-2013 and 2014.  As Congress considers a continuing resolution to fund the federal government past October 1 and avoid another government shutdown, it should reject further cuts to vital programs and services which would once again take us in the wrong direction. Thereafter, Congress should make permanent the improvements made to the EITC and the Child Tax Credit as part of the American Recovery and Reinvestment Act of 2009, which are set to expire in 2017. And it should protect and strengthen vital programs such as Section 8 housing, and the Supplemental Nutrition Assistance Program, formerly known as food stamps, which suffered two rounds of deep cuts in 2013 and 2014.

Conclusion

It is not only possible for America to cut poverty, it is possible for us to cut poverty dramatically.  Between 1959 and 1973, a strong economy, investments in family economic security, and new civil rights protections helped cut the U.S. poverty rate in half. Investments in nutrition assistance have improved educational attainment, earnings, health and income among our nation’s children when they reach adulthood. Expansions of public health insurance have lowered infant mortality rates. And, in more recent history, states that have raised the minimum wage have shown the important role that policy plays in reversing wage stagnation.

There is nothing inevitable about poverty, and there is nothing inevitable about the lack of political will to dramatically reduce it.  Share this article with your friends, and get involved.

 

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Broadening the Fight for $15 https://talkpoverty.org/2014/09/11/cant-survive-7-25/ Thu, 11 Sep 2014 13:00:03 +0000 http://talkpoverty.abenson.devprogress.org/?p=3653 Continued]]> At 6 a.m. last Thursday, a small group of people gathered at the Burger King on the corner of North Avenue and Hunt Street in Atlanta’s Old Fourth Ward. They were fast food workers, home care workers, and those who support their cause. By the time the sun came up and North Avenue began to bustle an hour later, their numbers had doubled to about 40 people.

“We can’t survive on 7.25!” they chanted as cars zoomed by. When the light was red, they shouted at the cars, “Honk for 15!” Many drivers happily obliged.

This was the first in a series of actions held last Thursday in concert with workers across the country fighting for a minimum wage increase. The “Fight for 15” campaign, named after the goal of attaining a $15 minimum wage, is backed by the Service Employees International Union (SEIU), community-based organizations like Atlanta Jobs With Justice, and many individual workers.

For several workers, this was not the first action they attended for wage increases.

“This is my third one,” said Armondo, a local Burger King employee. “My manager and I got into it a little bit because I’m supposed to be at work. But this is important, so I’m here.”

Keyona, who also works at Burger King, has been involved in other actions too.  “This is like my fourth time. It’s all right—trying to get more money for us to live [comfortably],” she told me.

According to Armondo, the group of about 40 workers and organizers meets three times a month to plan actions like these. They are mostly fast food workers from a number of different establishments, including Taco Bell, Zaxby’s and Domino’s.

Thursday’s actions, however, included a number of home care workers as well.  Marie has been a home care worker for 26 years and is also a fast food worker.  She lives and works in a group home Friday through Sunday; works as a delivery driver for Domino’s pizza Monday through Thursday evenings; and watches children in her home Monday through Friday during the day.

Even with three jobs, Marie still has trouble making ends meet. “The rent was due on the first. It’s the third. I haven’t got it,” she said. “The car insurance is $200. I haven’t got it. The gas bill is $143. I haven’t got it.”

With low wages and few hours, the workers often need assistance to support themselves and their families. “I make just enough to pay rent,” Armondo said.  “I have to ask for help from my family for other things.”

Some, like Yolanda, also a Burger King employee, qualify for some government assistance, but still need to ask family for help. “I don’t work enough hours for childcare [assistance], but I qualify for food stamps. If it wasn’t for my mother, I wouldn’t even be able to work because I wouldn’t have anybody to watch my child.”

Keyona echoed similar challenges; “I get food stamps, but you can’t pay bills with food stamps.”

When people are unable to pay their bills, it doesn’t just affect them. “When you have to ask your 23-year-old daughter to help you pay your cell phone bill, that is humiliating,” Marie said.

Bringing in home care workers like Marie is part of a broader effort to make the Fight for 15 movement more inclusive and far-reaching. Rather than pushing for higher pay and better working conditions for a specific group, SEIU and its partners are fighting for changes to the minimum wage at the municipal, state and national level that would impact all workers. The Center for Community Change—where I am a Writing Fellow—is one of the organizations that is actively supporting Fight for 15 efforts nationwide.

So far, the campaign’s efforts appear to be paying off. Since the Fight for 15 started about two years ago, 13 states as well as 10 city and county governments have raised their minimum wages.  Seattle raised its wage to a groundbreaking $15 an hour, and San Francisco residents will vote in November on whether their city will do the same. We certainly have not seen the end of the fast food worker strikes.  The only question that remains is how many more states and municipalities will join the growing ranks of those that are doing the right thing and raising the minimum wage?

For Marie, taking part in the actions is important.  “When I do this, I know it doesn’t stop with me,” she said. “We’re not just speaking up for ourselves; we’re speaking up for all the workers out there like us.”

 

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This Labor Day, Let’s Remember Those Who Can’t Afford a Day Off https://talkpoverty.org/2014/09/02/labor-day-lets-remember-cant-afford-day/ Tue, 02 Sep 2014 13:21:43 +0000 http://talkpoverty.abenson.devprogress.org/?p=3581 Continued]]> In a recent New York Times article, reporter Jodi Kantor describes the challenging lifestyle of Jannette Navarro, a 22-year-old single mother who is a Starbucks barista with an erratic work schedule. The article chronicles Jannette’s seemingly impossible balancing act of seeking childcare, pursuing an education, and providing for her family.

The workplace stress and uncertainty that Jannette faces day-to-day is also felt by low-income working families across the US. Fluctuating work hours and limited resources make the daily demands of family life and trying to get ahead in the economy a constant challenge, creating anxiety as families simply struggle to stay afloat.

Through its research, Children’s HealthWatch, a national nonpartisan network of pediatricians and public health researchers, has documented that job security isn’t just an economic and lifestyle issue – it affects our physical health as well.  In our brief published today – Steadying the Foundation: Maternal Job Stability, Safety Net Programs & Young Children’s Health – we describe how job instability (defined as maternal job loss or reduced work hours) increases the risk of poor health for mothers and their young children.

In urban hospitals across the country, we interviewed more than 14,000 low-income working mothers with children under age four.  We found that 38 percent of these women had experienced job instability in the past year. Compared to stably-employed mothers and their children, mothers with job instability were more likely to have poor mental and physical health, and their children were significantly more likely to be in poor health and have developmental delays. Our research also found that job instability is linked to higher levels of material hardships such as housing insecurity (living in overcrowded conditions or moving frequently) and family food insecurity (when families lack sufficient food for all members to lead active, healthy lives).

While financial loss due to job instability can end up harming the health and development of young children, our research suggests two of the largest federal safety net programs – the Supplemental Nutrition Assistance Program (SNAP) and Unemployment Insurance – can blunt the impact. The rate of child food insecurity – a severe level of food insecurity where children have to skip meals or go without eating for an entire day – was significantly lower for children whose mothers experienced job instability but also received SNAP, than it was for the children who did not receive SNAP.  In other words, SNAP helped to buffer children from the worst effects of job instability.

Unemployment insurance (UI) had a similar positive effect, stabilizing the housing of children whose mothers had lost a job. Families experiencing job loss who received UI were 27 percent less likely to be housing insecure than those families that did not receive UI.

No one wakes up in the morning saying, ‘I think I want to lose my job today and go apply for government assistance'

Of course, no one wants to have to rely on public assistance as they juggle the demands of raising a family and inconsistent work hours or job loss. As Tianna Gaines-Turner, a member of Witnesses to Hunger in Philadelphia, puts it, “No one wakes up in the morning saying, ‘I think I want to lose my job today and go apply for government assistance and wait weeks for my unemployment to go through.’ No one wants that. But food stamps and other government assistance programs are important to help families who, through no fault of their own, end up unemployed and need a little extra help.”  She and her husband both work to support their three children but have struggled to escape poverty.

In response to the New York Times article, Starbucks has announced it would change the way it schedules its baristas in order to improve “stability and consistency.” Shifting towards a more manageable and family-friendly work environment is a good first step. However, there are other actions that policymakers should take to promote job stability and improve the health and self-sufficiency of low-income families.

First, increase the minimum wage to at least $10.10 an hour, and index it to inflation to ensure its value does not erode in the future; also expand the Earned Income Tax Credit (EITC) and Child Tax Credit to provide a critical boost to low-wage working families’ incomes. Second, ensure that the SNAP benefit is calculated based on the real cost of a healthy diet to help eligible families put more healthful food on the table.  Right now, it’s based on a plan that doesn’t match the costs of living for today’s working families. Third, permit “good cause” as a qualified reason for leaving a job under UI regulations.  Currently, many workers are ineligible for UI even if they have an unavoidable and justifiable cause for resigning, such as health problems or child care issues.  Lastly, strengthen the Family Medical Leave Act so that qualified workers receive up to 12 weeks of paid leave each year for the birth or adoption of a new child, serious illness of a family member, or a worker’s own medical condition.

This Labor Day, we should recognize the kinds of workplace practices and policies that allow families to lead healthy, productive lives with stability for their children.  The solutions are within reach – employers and policymakers can strengthen economic security for all working families.

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Time to Raise the Wage so Nobody Has to Live the Wage https://talkpoverty.org/2014/08/07/time-raise-wage-nobody-live-the-wage/ Thu, 07 Aug 2014 12:30:24 +0000 http://talkpoverty.abenson.devprogress.org/?p=3339 Continued]]> Friday was my final day participating in the “Live the Wage” challenge. Living for a week on minimum wage was exhausting. Money and my budget never left my mind, and I was constantly calculating to ensure that my funds didn’t run out before the end of the week.

It’s not the first time I’ve lived on minimum wage. I’ve held jobs at a temp agency, call center, nursing home, in food service, and on the assembly line—all jobs that paid the minimum or barely above it. But back then, my situation was different. I shared a very small apartment with three friends, I hadn’t started my own family yet, and minimum wage hadn’t lost so much of its value.

That’s why the #LivetheWage challenge was eye-opening for me. Together with members of Congress and thousands of advocates across the country, I lived on a minimum wage budget for a week. Spending just $77 on our food, transportation and all incidental expenses, we hoped to gain just a small understanding of the tough decisions faced by minimum wage workers every day.

I only had to live on this budget for one week. I paid for grocery staples and gas. I couldn’t afford fresh, healthy vegetables. Peanut butter or egg salad was my daily lunch. I kept checking my gas gauge and didn’t drive anywhere but to and from work.  By the end of the week, I worried about whether I’d have enough money even to do that. There was nothing else – no latte, no haircut, no school clothes for my grandkids. I did buy a set of flashcards for my grandson. He needed to practice his multiplication, and school was starting in two weeks. But it meant I had to cut my food and gas expenses even more.

To say the “Challenge” was a challenge is an understatement, and I didn’t have to support my family on that amount.  However countless other working women continue to struggle on poverty wages. People like 9to5 member Crystal Whetstone; she works at a discount retailer in Dayton, Ohio and her highest raise in the last seven years was 25 cents. Crystal lives with her parents because she can’t afford to live alone. She can’t pay off her student debt. She can’t get ahead. Or Barbara Gertz, who has had days when she can’t even afford transportation to her job at Walmart.

It’s been five years since Congress last raised the minimum wage, and the tipped minimum wage hasn’t budged since 1991. It’s past time for jobs that pay decent wages – wages that boost the lives of women and families, and help our communities thrive. Women are now the primary or co-breadwinners in two-thirds of American households – when women do well, our economy does well.

But don’t take my word for it. Listen to those struggling day in and day out to make ends meet.

“Raising the minimum wage would give my household a needed boost. I could contribute more to my household for groceries and bills and maybe even buy myself something nice every once in a while,” says Peggy Jackson, a 9to5 member from Atlanta, Ga. “Those of us earning minimum wage are trapped in a cycle of poverty because we’ll never be able to save enough money to get ahead.”

Peggy is right, and those of us who took the Challenge have a better appreciation of just how right she is.  It’s time to #RaiseTheWage now!

 

 

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Beyond the Minimum Wage: What’s Really Keeping Hourly Workers in Poverty? https://talkpoverty.org/2014/08/06/beyond-minimum-wage-whats-really-keeping-hourly-workers-poverty/ Wed, 06 Aug 2014 12:30:39 +0000 http://talkpoverty.abenson.devprogress.org/?p=3332 Continued]]> In the debate about poverty and rising economic inequality, we need to think beyond the minimum wage.

When we talk about poverty it’s difficult to track—and give voice to—all of the different ideas around causes and solutions that need attention. Multiply those competing demands exponentially and you may get a feel for what working people in some of the fastest growing job sectors in our economy face every day.

Shift workers—especially those in the retail sector—are subject to unpredictable and erratic scheduling practices that make it nearly impossible to plan their lives and earn a stable income. An increasing number of these workers simply aren’t able to get the hours they need in order to support their families. They are essentially trapped in a cycle of poverty, with little time or resources to make any progress toward escaping it.

These are workers who aren’t living paycheck to paycheck; they’re living hour to hour.

By giving workers the right to request a predictable or flexible schedule, this legislation would increase job quality in our country.

How can people working under these conditions set a budget?  How do they schedule medical appointments or arrange care for their children?  In addition to dealing with their erratic schedules, retail workers are often required to be on call—making sure they are available without any guarantee of a shift.

So while increasing the minimum wage is indeed a critical step in the fight against poverty, it is just one piece of a much larger, broken system in the low-wage sector.

That’s why the Schedules That Work Act—introduced last month by Representatives George Miller (D-CA) and Rosa DeLauro (D-CT), along with Senators Tom Harkin (D-IA) and Elizabeth Warren (D-MA)—is so critical. It would allow every worker to have a say in their schedules—whether someone is experiencing erratic shifts, or too many hours, or needs a schedule accommodation in order to meet an obligation. By giving workers the right to request a predictable or flexible schedule, this legislation would increase job quality in our country.

At the local level, city and state governments are also demanding that the largest, most profitable retail corporations do right by their workers.

Last week, Jobs With Justice San Francisco led a coalition of labor, community, advocacy and small-business groups in introducing a groundbreaking Retail Workers Bill of Rights ordinance. The measure, authored by San Francisco Board of Supervisors members Eric Mar and David Chiu, would create new protections for retail workers who are burdened with on-call scheduling and diminished hours. The ordinance would only apply to profitable, large chain retailers—banks, fast food and restaurant chains, department stores—companies that clearly have the means to improve labor standards. If adopted, the bill would require fair scheduling practices like advance notice, adequate on-call pay, and more opportunities for part-time workers to transition to full time-employment. It would also require employers to offer more hours to current part-time employees prior to hiring additional part-time staff.

Without these kinds of reforms to scheduling and hours in the low-wage sector, we will continue to have too many people working two and three jobs but stuck below the poverty line. Nationwide, nearly eight million people are involuntarily working part-time hours. That leaves them vulnerable to poverty—nearly one in four involuntarily part-time workers lives in poverty, compared to one in 20 full-time workers. These low-quality jobs also impact the broader community because employers shift costs—particularly for health care for their workers—to our already overburdened public systems.

We need 21st century policies to address the new 21st-century workplace. Efforts like the Schedules That Work Act and the Retail Workers Bill of Rights are more than just commonsense bills; they are innovative ways to address poverty and inequality in our communities.

 

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A Historic Executive Order for Good Jobs https://talkpoverty.org/2014/07/31/good-jobs-exec-order/ Thu, 31 Jul 2014 12:30:24 +0000 http://talkpoverty.abenson.devprogress.org/?p=3276 Continued]]> Today is a great day for American workers.

President Obama will sign an executive order that in essence demands that companies clean up their acts and comply with labor laws if they are to receive federal contracts.  Now they will have to disclose any past violations of wage and safety laws, and other worker protections such as the right to not be discriminated against because of race or gender, and companies with a track record of violating workplace laws will no longer receive the federal contracts they have come to expect.

To put this change in perspective: the United States federal government is the largest purchaser of goods and services in the world, spending $500 billion a year on government contracts.  More than one in five workers are employed by a company that contracts with the federal government.  Further, reforms that are initially limited to contractors – such as when President Johnson signed an executive order banning gender and racial discrimination – often later expand to the broader workplace.

Responsible contracting reforms will put millions of dollars into workers pockets, reduce workplace discrimination, and increase safety.

In short, the executive order that will be signed today will have a significant impact on the lives of American workers.

Unfortunately, our current system for reviewing a contractor’s history of workplace safety and wage violations is inadequate and has allowed those with poor records to continue to receive government contracts.  In fact, according to a recent report by Sen. Tom Harkin (D-IA), companies that currently receive government contracts comprise one-third of the top offenders of workplace safety and wage laws.  From 2007 to 2012, wage theft by federal contractors amounted to $82 million in back wages for workers – hardly insignificant, especially for low-wage workers whose families are living on the brink.  During the same five-year period, 42 workers employed by companies with government contracts died due to workplace safety violations. Responsible contracting reforms will put millions of dollars into workers pockets, reduce workplace discrimination, and increase safety.

This executive order will be good for America’s taxpayers.  Contracting with companies that have egregious records of workplace violations – companies that are bad actors – frequently wastes taxpayer dollars and results in low-quality services to the government. According to a report by the Center for American Progress Action Fund, between 2005 and 2009, one-fourth of all government contractors that had the worst workplace safety records also had performance issues ranging from cost overruns to development delays to outright fraud.

This executive order will move the nation towards rewarding businesses that want to do right by their workers and taxpayers. Law-abiding businesses will celebrate this change.  They will no longer be placed at a competitive disadvantage with companies that reduce costs by paying lower wages than those required by law and by cutting corners on workplace safety.

All too often, the federal government has contracted with companies based on their ability to provide low-cost services – no matter what they are doing in the workplace.  President Obama’s action today will be a game changer – it will help ensure that companies follow the law, and that good companies are rewarded while bad actors are held accountable.

Perhaps most importantly, today’s action will improve the workplace as well as the pay for millions of workers who are struggling to get by – workers whose needs and rights have too often been on the periphery when it comes to awarding lucrative federal contracts.

With this executive order, those days are over, and that’s something worth celebrating.

 

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Bearing Witness and Calling for a Good Jobs Executive Order https://talkpoverty.org/2014/07/29/bearing-witness-calling-good-jobs-executive-order/ Tue, 29 Jul 2014 11:30:42 +0000 http://talkpoverty.abenson.devprogress.org/?p=3248 Continued]]> Today, underpaid workers from federal buildings all across our nation’s capital are on strike, calling on President Obama to do more than raise their wages to $10.10 an hour.  The President’s Executive Order doing just that was signed in response to a half dozen strikes that the workers engaged in over the past year, raising their voices and bearing witness to violations of labor law happening on federal property.

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 Low-wage federal contract workers strike at Union Station for a Good Executive Jobs order. They were joined by Interfaith Worker Justice, SEIU, NETWORK, Members of Congress, and other organizations.

People I have talked with about this have said “The workers have won, they got a raise.  Why should the President take more action to address their concerns?”

I urge them, and anyone else who believes that a $10.10 minimum wage is enough to support a family to walk a mile in the shoes of Karla Quezada.  Karla has worked for more than a decade prepping food, making sandwiches and working the cashier serving customers at the Ronald Reagan federal building in Washington DC.  A single mother, she has worked day-in and day-out, sometimes more than 70 hours per week, trying to support her family.

In a complaint with Department of Labor (DOL), Karla alleges that she is a victim of wage theft.  She says that Subway never paid her the overtime premium that she was due when she would work more than 40 hours in a week. According to the complaint, Karla went on strike to highlight the abuse of federal contract workers, and her employer cut her hours, hoping to force her to quit and find another job.  But Karla has other ideas and greater resolve.

She has continued to raise her voice, highlighting the fact that wage theft and other abuses are taking place in federal buildings.  Karla and her coworkers joined with other federal contract workers to file that complaint with the DOL about their stolen wages.  It’s been over a year since the first complaint was filed, and the workers have not yet gotten a response.

I’m reminded of this Bible passage in Romans 4:4 – “Now to one who works, wages are not reckoned as a gift but as something due.” Raising wages is a great first step, but it’s not enough.  We need to guarantee that workers like Karla are paid every single penny of the money they have earned. It’s the moral thing to do, the right thing to do.  I believe the American people agree. Our tax dollars should not go to companies that are violating not only moral imperatives, but also actual laws.

In fact, our contributions as taxpayers should help guarantee that the jobs our tax dollars create are good jobs that can support a family, not keep hard working people living in poverty.

President Obama can do more to help federal contract workers.  A recent report by the public policy organization Demos found that if the president where to take action on a Good Jobs Executive Order he could put 20 million Americans on a path towards the middle class.  Eight million workers and their families employed in jobs created by taxpayer dollars could stop relying on public assistance in order to make ends meet.

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A Good Jobs Executive Order could give preference to those companies that pay a living wage and provide good benefits, follow the law, allow workers to collectively bargain and don’t overspend on CEO pay.

Why should taxpayers reward companies that exploit their workers who are our neighbors and friends?

Muslim, Christian, and Jewish faith leaders agree and are supporting these workers in their struggle for fairness and a real opportunity to achieve the American dream.  Our faith compels us to stand with them, because their struggle is just and it is our struggle as well. Karla and her coworkers are not doing this out of selfishness. Millions of workers that Karla has never met can benefit from the risks she and her coworkers are taking.  Although they don’t all know each other, they do share one thing:  Taxpayer dollars are being used to keep them in poverty.

The President can change that with the stroke of his pen.

 

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Despite Harris v. Quinn, Domestic Workers Movement Thriving https://talkpoverty.org/2014/07/11/triumphant-story-domestic-workers/ Fri, 11 Jul 2014 12:30:05 +0000 http://talkpoverty.abenson.devprogress.org/?p=2810 Continued]]> Sometimes, when things fall apart, space emerges for new ideas to take hold. Since the Great Recession in 2008, the overall resistance from business interests to basic ideas such as raising wages has sustained. Yet there have been glimmers of an emerging pro-worker ideology, one that has begun to influence some state and federal policymakers. Among the most important developments are those stemming from the domestic workers’ movement—a movement that is working to ensure basic labor protections for nannies, housekeepers and caregivers, and that is building awareness about how essential the labor inside of homes is for the economy as a whole.

In my book, Part of the Family: Nannies, Housekeepers, Caregivers, and the Battle for Domestic Workers’ Rights, I discuss how domestic workers have successfully persuaded state and federal policymakers to include domestic workers within basic labor protections such as overtime. The Fair Labor Standards Act (FLSA), enacted in 1938, deliberately excluded domestic workers. This type of gendered exclusion results in higher levels of poverty for women. Domestic workers are among the lowest-paid workers in the United States.  Since our nation’s earliest days they have been excluded from basic labor protections, in large part because the work of the domestic sphere — dominated by women — has long been considered not “real” work.

In recent years, amid the economic turmoil so many Americans are experiencing, the message that domestic work is real work has begun to resonate with some policymakers. In 2010, the New York state legislature enacted the nation’s first domestic workers’ bill of rights, ensuring overtime, rest breaks and disability benefits for the state’s domestic workers. California followed suit in 2013 (though the legislative path wasn’t easy, with bills vetoed in 2006 and 2012). Hawaii also enacted legislation in 2013 that expands overtime protections for domestic workers. Massachusetts just enacted legislation that ensures a day of rest per week and protection from harassment on the job. Critically, President Obama and former Labor Secretary Hilda Solis finally reversed the exclusion of domestic workers from the FLSA. These regulations would ensure that domestic workers are protected under wage and hour laws, and, barring delays, will be effective in 2015.

During these legislative battles, advocates saw clear shifts in how legislators understood the issue of domestic workers’ rights. New York Assembly Speaker Sheldon Silver originally refused to bring the state bill of rights to the assembly floor. But over time he was persuaded to support the legislation, and upon enactment, he noted, “This bill rights a wrong that began when domestic workers were excluded from the labor protections created by the New Deal and brings us one step closer to our goal of dignity and fairness for all workers across this state.”

Clearly, the end goal is not just the new regulations. These campaigns for domestic workers’ rights help change the way that all of us — including our legislators — think about the value of workers. The movement is part of a larger movement demanding that all workers be paid a living wage; receive paid sick days that are good for workers and public health; and have the right to paid family leave that is critical for workers and those who need their care.

There may continue to be setbacks — such as the Supreme Court’s ruling in Harris v. Quinn on June 30, which weakened the collective bargaining power of many domestic workers. But that doesn’t mean there isn’t reason for optimism. The heightened awareness among policymakers alone is a signal of progress, though it has to be sustained. My book advocates for more funding for community organizers who work hard to ensure that workers are aware of their rights and that new laws are enforced. Shining a light on emerging activism and its successes is also crucial.

The narrative of the economic collapse can indeed evolve into a better story – one in which the Great Recession eventually led to improved economic conditions for women and for all workers.

 

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The David and Goliath Story of our Time: Fighting for Living Wages and Worker Protections https://talkpoverty.org/2014/07/09/david-goliath-story-time-fighting-poverty-wages-worker-protections/ Wed, 09 Jul 2014 12:30:10 +0000 http://talkpoverty.abenson.devprogress.org/?p=2957 Continued]]> Your taxi driver, the wait staff at the restaurant you like, the person doing your manicure—they all have something important in common: all have been excluded, in some way, from traditional labor protections.

Over the years, these protections have been what safeguards the right to a minimum wage, overtime pay, health and safety protections, and the right to form a union. Without them, low-wage workers—the very people on whom we rely on a daily basis—are disempowered and often trapped in poverty.

These excluded sectors have banded together to create worker centers—non-profit, community organizations representing specific occupational sectors—mostly made up of “immigrant workers and African-Americans who labor in jobs that do not pay a livable wage.” The first crop of worker centers emerged over two decades ago in response to the waning power of traditional labor organizing and the unique needs of laborers of color.  They provided a critical community touch point in advocating and organizing for just workplace practices. Since then, they have grown to create national bodies representing all major sectors, and include: the National Day Laborers Organizing Network, National Domestic Workers Alliance, National Guestworker Alliance, and the Restaurant Opportunities Center (ROC) United, among others. By one estimate, there are now over 200 worker centers across the United States fighting for fair wages, paid leave, and other workplace protections.

Today, low-wage industries employ 1.85 million more workers than at the beginning of the 2008 recession and represent some of the fastest growing sectors in the economy. These industries include restaurant work, retail, and caregiving, all of which have high volumes of immigrants, people of color, and women in the workforce. When we see that these same people also make up a disproportionate amount of working Americans living in poverty—earning a fraction of the wages of their white, male counterparts—we should look to their employers for answers.

The $600 billion restaurant industry, specifically, is the largest employer of people of color in the United States. Thirty-nine percent of all workers making the minimum wage or below work in this industry, making it the largest low-wage employer. Simply raising the minimum wage to $10.10 would increase the combined incomes of people of color by $16.1 billion—nearly 300,000 of those affected would be workers of color in the restaurant industry. Additionally, 2 in 3 tipped workers are women, and the tipped minimum wage has been stuck at $2.13 per hour since 1991. All of this points to the fact that at the frontlines of the gender and racial wage gap, workers making poverty wages are bravely taking on giant, moneyed interests like the restaurant industry. This is truly the David and Goliath story of our time.

In some cases, workers are winning. Last year, ROC United was instrumental in securing paid sick days for tipped workers in Washington, D.C. The National Domestic Workers Alliance also successfully fought to provide minimum wage and overtime protections for homecare workers.

In many ways, worker centers are a contemporary economic necessity. Since people of color are the rising majority, it is imperative that we improve job quality in sectors that currently employ these workers at high rates. Worker centers become even more needed as traditional labor organizations and workers’ rights are threatened in Congress, in individual states, and in the Supreme Court with the recent Harris v Quinn decision.

Nearly 51 years ago, during the March on Washington for Jobs and Freedom, activists called for not only desegregation, but also dignified jobs and decent wages.  And tomorrow at 10:00am ET, the Center for American Progress marks the 50th Anniversary of the Civil Rights Act—which included historic protections at the workplace—with an event: “Passing the Baton: The Next 50 Years of Civil Rights and Economic Justice”.  Watch live as an intergenerational group of civil rights activists offers ideas about how to renew and invigorate a movement focused on civil rights and economic security.

Many low-wage workers are already leading the way.  This is an opportunity to find new ways to get involved.

 

 

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Can We Talk Poverty Without Talking Money? https://talkpoverty.org/2014/06/26/can-talk-poverty-without-talking-money/ Thu, 26 Jun 2014 12:30:00 +0000 http://talkpoverty.abenson.devprogress.org/?p=2758 Continued]]> When we talk about poverty, we often talk about material hardship and the cost of things like housing, food, clothing, and transportation.

But when we look at the budgets of struggling families, we often ignore the cost of money itself. Yet the old adage that it takes money to make money is also true in reverse. Without money, it costs money just to deal with money.

The cost of a bank account has gone up in recent years. Only about half as many banks offer free checking accounts as they did in 2009, and the average minimum balance to avoid bank fees reached $723 in 2012, up 23 percent from the previous year. At the same time, not having a bank account—roughly 17 million American adults don’t, according to the Federal Deposit Insurance Corporation (FDIC)—can be even more expensive. And policymakers need to factor in these costs when making decisions not just about banking regulations, but a wide range of policies that affect low-income families. Otherwise, struggling families and consumers will continue to lose dollars needlessly.

Take the case of Natalie Gunshannon, a McDonald’s employee in Pennsylvania.  She sued her local franchise last year when it forced her to receive her wages on a prepaid debit card. This card charged $1.50 for every ATM withdrawal, or $5 to withdraw cash at a bank. It even charged $1 to check the account balance at an ATM, and 75 cents to pay bills online. Depending on how the card was used, it could easily drive someone’s earnings below minimum wage.

In Natalie’s case, using the card made no sense because she already had a free account at a local credit union. But not all low-wage workers have good alternatives like Natalie, and if they decide not to participate in the mainstream banking system, they may ultimately pay even more for simple transactions. Check cashers may charge from 1 to 5 percent of the amount on a paycheck or government benefit check in order to cash it. And many unbanked consumers end up paying again when they need to buy money orders or pay bills in person.

A low-wage worker paid $700 every two weeks, facing a 2 percent check cashing fee, and buying two money orders each month, spends more than $30 per month on financial services.  That means he or she is working nearly an hour each week just to pay the check casher. For many workers, these costs are often even higher.  It’s a slow drip for workers that takes dollars out of every single paycheck, and it adds up to billions of dollars that consumers and families could otherwise spend or save. By simply expanding access to affordable banking services millions of Americans would receive a raise.

Sometimes that slow drip for financial services turns into a catastrophic flood. About two out of every five Americans say that they probably or definitely wouldn’t be able to come up with $2,000 in 30 days to deal with an emergency. That number rises to about two-thirds of lower-income Americans. When faced with financial shortfalls, struggling families may turn to payday lenders for quick cash pledged against the next paycheck, or to auto title lenders who offer cash in exchange for the car title and a spare set of car keys.

These lenders typically charge triple-digit annual interest rates and, not surprisingly, borrowers can’t keep up. Four out of five payday loans is rolled over to a new loan. In Virginia alone, auto title lenders repossessed 13,000 cars in 2012 among borrowers who couldn’t make their payments. In 2007, the Pentagon was so concerned about these loans that they successfully pushed Congress to cap at 36 percent the annual interest rate that can be charged to our troops and their families.  However, bills to extend this cap to everyone have gone nowhere.

Fortunately, many of the solutions to these problems already exist. In its three-year history, the Consumer Financial Protection Bureau has effectively been a new cop on the beat examining the tricks and traps in the financial marketplace. State and local governments have expanded access to affordable, basic bank accounts and pushed for more affordable prepaid cards for payroll and benefits.  Policymakers are now considering whether to build out public banking options, such as offering more banking services through the post office, as many other countries do. In cities like New York, financial empowerment centers that offer free financial counseling now help struggling families make the most of their money and avoid the rip-offs that make it even harder to get ahead.

Not all of these efforts have succeeded, however. Last year, the Chicago Transit Authority (CTA) announced an innovative new product called Ventra: a transit farecard that doubled as a prepaid debit card. In theory, this card could have turned every subway and El station into a banking center. But as designed, it was a high-fee card that guaranteed revenue for the CTA and was a bad deal for consumers. It took public pressure to redesign the card’s features and fees and launch a better product. In the meantime, trust was lost.

Yet the occasional step backward shouldn’t stop policymakers from seeking safer, more affordable, and more convenient ways for low-income Americans to manage and save their money. When every dollar counts, we should make sure families are able to keep the dollars that belong to them.

 

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Increasing Wages is an Effective Poverty Reduction Tool https://talkpoverty.org/2014/06/18/gould/ Wed, 18 Jun 2014 11:28:55 +0000 http://talkpoverty.abenson.devprogress.org/?p=2646 Continued]]> Broad-based wage growth—if we can figure out how to achieve it—would dwarf the impact of nearly every other economic trend or policy in reducing poverty. Even in 2010, the bottom fifth of working age American households relied on wages for the majority (56%) of their income. When you add in all work-based income including wage-based tax credits, nearly 70% of income for low-income Americans is work-related. Yes, the targeted efforts to strengthen the safety net are well deserved. Programs such as food stamps (SNAP), unemployment insurance, and Social Security have helped reduce poverty over the last four decades.  But market based poverty (or poverty measured using only income from wages) has been on the rise and the safety net has to work even harder to counterbalance the growing inequalities of the labor market.

There was once a strong statistical link between economic growth and poverty reduction, but rising inequality has severed it, and the results are deeply dispiriting. If the statistical link between economic growth and falling poverty that held before the mid-1970s had not been broken by rising inequality, then poverty, as the government measures it, would be virtually eradicated today. Furthermore, the impact of rising inequality is nearly five times more important in explaining poverty trends than family structure.

As the Economic Policy Institute has documented in our paper launching the Raise America’s Pay project, this rise in inequality is simply the flip side of nearly stagnant hourly wage growth for the vast majority of the American workforce in the three decades before the Great Recession. So how to reverse this wage-stagnation, especially for low-wage workers? Below is a list of proposals, all linked in their attempt to rebuild institutions that provide bargaining power to workers who have had it taken from them in recent decades.

The minimum wage is currently more than 25% below its real value in the late 1960s. The Congressional Budget Office (CBO) reports that the Harkin-Miller bill to raise the minimum wage to $10.10 would cumulatively boost incomes of people below the federal poverty line by $5 billion. And this is probably too conservative; other academic research finds that the same bill would lift more than 4 million people out of poverty. Among those who would see a raise from the Harkin-Miller bill, 55% are women and 25% are women of color. Nearly one-in-five kids would see at least one parent get a raise.

We need to enforce the labor standards we have, update the ones that need it, and put power back in the hands of workers to bargain for better working conditions for themselves and their families.

Another key policy priority should be efforts to level the playing field for workers to organize and form unions. The decline in unionization over the last several decades has led to increases in wage inequality and a loss of bargaining power for workers. And this bargaining power loss is not confined to union members themselves—unions often set wage-standards for entire sectors. Importantly, the decline in unionization is not a natural, inevitable phenomenon or a result of workers no longer wanting unions. It is the result of a policy decision to allow growing employer aggressiveness to tilt the playing field against organizing drives.

This policy choice is clear when one looks at the evidence. First, unionization has held up much better in the public sector where employers have less ability to fight organizing drives. Second, in 2007, the share of non-union workers who said they wanted to be represented by a union or similar organization reached an all-time high at over 50%.   There is a growing wedge between the desire to organize and bargain collectively and workers’ ability to do so. And, third, even the most obvious form of employer aggressiveness—the firing of workers who are trying to organize—has risen sharply in recent decades, according to the National Labor Relations Board.

The fact is that the decline of unions can explain approximately one-third of the growth of wage inequality among men and approximately one-fifth among women since the 1970s. This rising wage inequality is the key driver behind stagnant wages for workers at the bottom. When low-wage workers have been able to organize, unionization is  associated with higher wages and benefits for many, including: food preparation workers, cashiers, cafeteria workers, child-care workers, cooks, housekeepers, and home-care aides.

Reducing wage theft is also particularly important to low-wage workers. Wage theft occurs when employers withhold wages that are owed to a worker, for example by requiring workers to work off the clock or refusing to pay overtime. There is widespread evidence of these practices and more—from tipped workers not being paid their wages to Apple store employees being forced to stand in line after their shift while their bags are checked for merchandise. In nearly 9,000 investigations of the restaurant industry, the wage and hour division of the Department of Labor found that 83.8% of the shops investigated had wage and hour violations —underscoring the enforcement problems.

Millions of low- and moderate-wage workers have also seen slow wage growth because they are working overtime and not getting paid for it. This is because the real value of the salary threshold under which all salaried workers, regardless of their work duties, are covered by overtime provisions has been allowed to erode dramatically. Simply adjusting the threshold for inflation since 1975 would raise it to $984 per week (or $51,000 on an annual basis), from its current level of $455 ($24,000 annually). This simple adjustment would guarantee millions of additional workers time-and-a-half pay when they work more than 40 hours in a week.

Other labor market policies and practices, which, if changed, would increase the wages of low- and moderate-wage workers, include: the misclassification of employees, such as construction workers who are deemed independent contractors so that the employer doesn’t have to pay for workers’ compensation. Just-in-time scheduling occurs when employers schedule workers erratically and sporadically, and denies workers any regularity in their schedule or pay. Think about how difficult that is for working parents who need to support their families and also find child care, or for workers who need a second job to make ends meet. Finally, paid sick time, paid family medical leave, and flexible work hours, all would support workers and their families.

The social safety net remains crucial for low-income working families in this country and also needs reforms. Everything from shoring up SNAP to extending EITC to childless adults to expanding Medicaid to people in those states which refuse federal dollars. We also should have universal pre-K and affordable and high quality child care—we need to use every tool in our toolbox to give kids a chance of success, reducing inequality at the starting gate of kindergarten.

But, if we really care about children in our country, then we also need to raise the wages of parents working hard every day to lift their families out of poverty.  We need to enforce the labor standards we have, update the ones that need it, and put power back in the hands of workers to bargain for better working conditions for themselves and their families.

 

 

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