Fast food workers earn 1,200 times less than CEOs, the widest disparity of any U.S. economic sector. McDonald’s employees make about $8.25 per hour on average before taxes, and the corporation tacitly acknowledges it pays poverty wages. The company drew flak last year for a website that advised its employees to budget by spending nothing on keeping their homes warm, finding a place to live that costs less than $600 a month and spending $20 a month on health insurance.
There’s a significant labor economics literature that argues that job-to-job transitions are a major driver of wage growth for workers. If the number of people moving directly from one job to another is in decline, that’s a bad sign for wage growth, as well as inflation and monetary policy. This appears to be undertheorized and not discussed enough in academic or policy discussions.
Walmart employees consume billions in food stamps each year, but raising their wages to a point where they wouldn’t need them anymore would only increase prices by about 1.4 percent
The problem? Male jobs pay more—way more. The median annual wage for computer programmers was $74,280 in 2012, according to the Bureau of Labor Statistics, and it was $53,400 for kindergarten teachers. Many women would need to change fields in order to make all workplaces in America have about a 50/50 gender split.
New Mayor Ed Murray says, “We know it is not a matter of if we get to $15 per hour, but when and how we get there.” All nine city council members publicly endorse the concept. But underneath the apparent consensus are differences on what $15 means and how long it should take. So labor and community groups in Seattle are mobilizing to hold the council’s feet to the fire—and to get the job done by ballot initiative if the council compromises too far.
A decision in favour of Pamela Harris in the Harris v. Quinn case before the U.S. Supreme Court would seriously impact the quality of care provided to tens of thousands of seniors and people with disabilities who use state-supported home care services.
It would do this by ruling the collective agreement covering more than 27,000 workers unconstitutional. More broadly, a ruling that the current system is unconstitutional threatens the future of collective bargaining.
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The AFL–CIO is a multifaceted institution composed of scores of autonomous unions, so President Richard Trumka’s leadership can hardly turn around this cumbersome vessel all that quickly. But the new emphasis is clear: the unions should ally with progressive partners and devote more energy to make the kind of changes in social policy that can benefit millions of poorly paid and insecure workers.
The middle class, once the backbone of a strong American society, has been broken, beaten down, pushed further and further toward poverty levels. Here are five well-documented ways that this has happened.
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