Tag: workers
Donald Trump, manufacturing plant, workers

‘I Don’t Trust Him’: How Trump Abandoned Workers When They Needed Him Most

This article was produced by the Independent Media Institute.

Kenny Overstreet scrounges every penny—and even sells the eggs his chickens lay—to make ends meet after Packaging Corporation of America (PCA) furloughed him and hundreds of other workers at its Jackson, Alabama, site.

Before the COVID-19 recession struck, the 61-year-old saved a little whenever he could for the retirement he planned to take in a couple of years.

But now, he scrimps to pay monthly bills and prays PCA calls him back to work before he blows through the nest egg he spent decades building.

Read NowShow less
Workers Left Behind In Trump’s ‘Booming’ Economy

Workers Left Behind In Trump’s ‘Booming’ Economy

Americans are not happy, and for good reason: They continue to suffer financial stress caused by decades of flat income. And every time they make the slightest peep of complaint about a system rigged against them, the rich and powerful tell them to shut up because it is all their fault.

One percenters instruct them to work harder, pull themselves up by their bootstraps and stop bellyaching. Just get a second college degree, a second skill, a second job. Just send the spouse to work, downsize, take a staycation instead of a real vacation. Or don’t take one at all, just work harder and longer and better.

The barrage of blaming has persuaded; workers believe they deserve censure. And that’s a big part of the reason they’re unhappy. If only, they think, they could work harder and longer and better, they would get ahead. They bear the shame. They don’t blame the system: the Supreme Court, the Congress, the president. And yet, it is the system, the American system, that has conspired to crush them.

Yeah, yeah, yeah, unemployment is low and the stock market is high. But skyrocketing stocks benefit only the top 10 percent of wealthy Americans who own 84 percent of stocks. And while more people are employed now than during the Great Recession, the vast majority of Americans haven’t had a real raise since 1979.

It’s bad out there for American workers. Last month, their ranking dropped for the third year running in the World Happiness Report, produced by the Sustainable Development Solutions Network, a UN initiative.

These sad statistics reinforce those in a report released two years ago by two university professors. Reviewing data from the General Social Survey, administered routinely nationally, the professors found Americans’ assessment of their own happiness and family finances has, unambiguously, declined in recent years.

That means stress. Forty percent of workers say they don’t have $400 for an unexpected expense. Twenty percent can’t pay all of their monthly bills. More than a quarter of adults skipped needed medical care last year because they couldn’t afford it. A quarter of adults have no retirement savings.

If only Americans would work harder. And longer. And better.

Despite right-wing attempts to pound that into Americans’ heads, it’s not the solution. Americans clearly are working harder and longer and better. The solution is to change the system, which is stacked against workers.

Workers are bearing on their backs tax breaks that benefited only the rich and corporations. They’re bearing overtime pay rules and minimum wage rates that haven’t been updated in more than a decade. They’re weighted down by U.S. Supreme Court decisions that hobbled unionization efforts and kneecapped workers’ rights to file class-action lawsuits. They’re struggling under U.S. Department of Labor rules defining them as independent contractors instead of staff members. They live in fear as corporations threaten to offshore their jobs—with the assistance of federal tax breaks.

Last year, the right-wing majority on the U.S. Supreme Court handed a win to corporatists trying to obliterate workers’ right to organize and collectively bargain for better wages and conditions. The court ruled that public sector workers who choose not to join unions don’t have to pay a small fee to cover the cost of services that federal law requires the unions provide to them. This bankrupts labor unions. And there’s no doubt that right-wingers are gunning for private sector unions next.

This kind of relentless attack on labor unions since 1945 has withered membership. As it shrank, wages for both union and nonunion workers did too.

Also last year, the Supreme Court ruled that corporations can deny workers access to class-action arbitration. This compels workers, whom corporations forced to sign agreements to arbitrate rather than litigate, into individual arbitration cases, for which each worker must hire his or her own lawyer. Then, just last week, the right-wing majority on the court further curtailed workers’ rights to class-action suits.

In a minority opinion, Justice Ruth Bader Ginsburg wrote that the court in recent years has routinely deployed the law to deny to employees and consumers “effective relief against powerful economic entities.”

No matter how hard Americans work, the right-wing majority on the Supreme Court has hobbled them in an already lopsided contest with gigantic corporations.

The administrative branch is no better. Just last week, the Trump Labor Department issued an advisory that workers for a gig-economy company are independent contractors, not employees. As a result, the workers, who clean homes after getting assignments on an app, will not qualify for federal minimum wage (low as it is) or overtime pay. Also, the corporation will not have to pay Social Security taxes for them. Though the decision was specific to one company, experts say it will affect the designation for other gig workers, such as drivers for Uber and Lyft.

Also, the Labor Department has proposed a stingy increase in the overtime pay threshold—that is, the salary amount under which corporations must pay workers time and a half for overtime. The current threshold of $23,660 has not been raised since 2004. The Obama administration had proposed doubling it to $47,476. But now, the Trump Labor Department has cut that back to $35,308. That means 8.2 million workers who would have benefited from the larger salary cap now will not be eligible for mandatory overtime pay.

It doesn’t matter how hard they work; they aren’t going to get the time-and-a-half pay they deserve.

Just like the administration and the Supreme Court, right-wingers in Congress grovel before corporations and the rich. Look at the tax break they gave one percenters in 2017. Corporations got the biggest cut in history, their rate sledgehammered down from 35 percent to 21 percent. The rich reap by far the largest benefit from those tax cuts through 2027, according to an analysis by the Tax Policy Center. And by then, 53 percent of Americans—that is, workers, not rich people—will pay more than they did in 2017because tax breaks for workers expire.

The White House Council of Economic Advisers predicted the corporate tax cut would put an extra $4,000 in every worker’s pocket. They swore that corporations would use some of their tax cut money to hand out raises and bonuses to workers. That never happened. Workers got a measly 6 percent of corporations’ tax savings. In the first quarter after the tax cut took effect, workers on average received a big fat extra $6.21 in their paychecks, for an annual total of a whopping $233. Corporations spent their tax breaks on stock buybacks, a record $1 trillion worth, raising stock prices, which put more money in the pockets of rich CEOs and shareholders.

That’s continuing this year. Workers are never going to see that $4,000.

No wonder they’re unhappy. The system is working against them.

This article was produced by the Independent Media Institute.

IMAGE: Workers on the assembly line replace the back covers of 32-inch television sets at Element Electronics in Winnsboro, South Carolina, REUTERS/Chris Keane/File Photo

Labor Department Proposes Extending Overtime Pay

Labor Department Proposes Extending Overtime Pay

It’s common for American workers to stay later than their hours suggest – “face time” being seen as a measure of one’s commitment to the job. According to a Gallup survey released last November, the average full-time American worker now works 47 hours a week, nearly a full day longer than the standard 40-hour week. And most of those workers don’t get paid anything extra for those additional hours.

President Obama is hoping to change that. In a proposal announced Tuesday, the Department of Labor would extend overtime pay to nearly 5 million Americans. The plan would simplify and update rules so that millions of workers can determine if they are eligible for overtime pay.

As of now, most full-time employees are classified as being exempt from receiving overtime because they are considered managers, administrative personnel, or professionals of some description. But bestowing those titles, especially “manager,” has become a convenient loophole for employers, who can offer meaningless promotions as a way to get out of paying employees overtime.

Currently, employers can avoid paying overtime if an employee makes more than $455 a week or $23,660 a year. The new proposal would more than double the threshold, to $970 a week or $50,440 a year.

According to the Wall Street Journal, the new proposal recommends that, moving forward, these numbers should change automatically, tied to either wage growth or inflation in order “to ensure the threshold’s buying power doesn’t erode in time.” Because that’s exactly what has happened since the 1938 Fair Labor Standards Act originally established the federal minimum wage and overtime rules. Those numbers have only been changed eight times since then, and only once since 1975.

Housing costs are rising, so much so that minimum-wage workers can’t afford to rent a one-bedroom apartment anywhere in the country. At the same time, real wages – after inflation has been taken into account – have been stagnating for decades.

The numbers the Obama administration are using in their proposal are the 1975 threshold, last updated in 2004, adjusted for inflation. The 2004 changes made it so that more employees were exempt from overtime –such as managers who did low-level work and supervised employees simultaneously. Due to inflation, the percentage of salaried employees who fell below the overtime-pay threshold steadily decreased, from 65 percent in 1975 to 18 percent in 2004 to 8 percent in 2014, according to the Economic Policy Institute, a nonprofit and nonpartisan think tank focusing on the needs of low- and middle-income workers.

Under the Fair Labor Standards Act, the president has the authority through the Department of Labor to set new rules without lawmakers’ approval, but the Department of Labor will hold a 60-day public comment period before they adopt any changes. It’s expected that businesses and industry groups will push back, arguing that instead of individuals receiving more money, the hours and pay will be spread out among more workers – which could increase part-time employment. Others, like the National Retail Federation, warn that businesses could reduce base pay and compensation, and make it less likely for workers to advance to become actual managers, since businesses will end up cutting the number of higher-ranking jobs.

According to the Economic Policy Institute, the proposed rules would disproportionally affect those who work in food service, insurance agencies, policy processing, customer service, office administration, and retail. Demographically, those likely to be affected include people under 35, women, blacks, and Hispanics, as well as workers with lower levels of education. The White House estimates that of the 5 million workers expected to benefit, 53 percent have at least a college degree and 56 percent are women.

The New York Times, in its editorial supporting the decision, cautioned Republicans to “think twice about” aligning themselves with business interests that oppose the proposal: “No party and no politician that opposes the new overtime rules can credibly claim to care about the middle class.”

As of this writing, no Republican presidential candidate, with the exception of Rick Perry, has commented on the proposed changes. In a statement, Perry, who believes that government should not set policies on pay or benefits, said, “As businesses are forced to spend more on payroll, those costs will be passed on to consumers in the form of higher prices for everyday goods and services.”

Hillary Clinton, however, praised the decision on Twitter.

Photo: Workers, like this woman, who process claims could be part of the millions of people affected by the Labor Department’s new proposed changes to its overtime rules, which would expand the definition and scope of who would be eligible for overtime pay. fatheroftheweasel via Flickr

Mexico Farm Workers Win Pay Hike In Landmark Deal, But Fall Short Of Goal

Mexico Farm Workers Win Pay Hike In Landmark Deal, But Fall Short Of Goal

By Richard Marosi, Los Angeles Times (TNS)

SAN QUINTIN, Mexico — A volatile farm labor strike that crippled exports from one of Mexico’s key agricultural regions ended Thursday night with an unprecedented accord that boosts wages as much as 50 percent for thousands of laborers in Baja California.

While considered a landmark achievement for a farm labor movement in Mexico, the mood was subdued after labor leaders learned that the federal government was pulling its offer to provide subsidies to reach the 200-peso daily wage rate — about $13 — sought by laborers.

The agreement reached after a six-hour negotiating session calls for a three-tiered compensation system. Large farms will pay workers 180 pesos per day; medium farms, 165 pesos; and small farms, 150.

Since most work at large agribusinesses, the wage increase amounts to about $4 per day for many of the estimated 30,000 workers in the region 200 miles south of San Diego.

“This isn’t the agreement that laborers were hoping for…but we made significant gains,” farmworker leader Fermin Salazar said after the meeting.

After the meeting at a salon in a San Quintin restaurant, Baja California state officials beat a hasty retreat, fearing that news of the accord could upset laborers. Governor Francisco Vega de Lamadrid had to push his way through an angry crowd yelling epithets and banging on his SUV.

“Coward! Rat!” yelled the crowd.

The deal appeared to conclude a nearly three-month strike in the San Quintin Valley that was marked by fierce clashes between police and protesters, drawing international media coverage. Large U.S. retailers, including Wal-Mart, Costco, and Safeway, import berries, tomatoes, cucumbers, and other produce from the region.

Workers, who had been on strike since mid-March, dropped their initial demand of a 300-peso daily wage to 200 pesos. But growers initially were only willing to boost wages 15 percent.

The breakthrough came in mid-May, when the federal government agreed to push agribusinesses to offer more and to make up the difference with federal funds, as “close as possible” to leaders’ demands.

But the proposal to subsidize wages, which was widely criticized in Mexico, was deemed to be unlawful, according to farm labor leaders who were briefed on the matter by a representative from Mexico’s Interior Ministry. They did credit the federal government for getting agribusinesses to budge from the position they held for two months.

At a news conference after the meeting, several leaders of the Alliance of National, State, and Municipal Organizations for Social Justice — the coalition of indigenous groups representing laborers — said they would not stop fighting for labor rights, and set their sights on establishing a national union of farm laborers.

Photo: Wonderlane via Flickr