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Posts Tagged ‘Wage’

Scrooge city! Employers hotly defend poverty-level wages

In business, life, Money, news, politics, urban life, US, work on December 17, 2013 at 3:22 pm

By Caitlin Kelly

‘Tis the season!

Check out the 300 comments — and climbing (including a long one from me) — at the Harvard Business Review blog where a Wharton professor, Peter Capelli, (gasp, competing B-school!) posted the following argument in favor of actually paying workers a living wage:

Jobs paying $15 per hour are not the concern, though. Those are routinely seen as good jobs now. The concern is those jobs paying at or around the minimum wage, $7.25 per hour or only $1160 per month for a
full-time job. About 1.6 million workers in the U.S. are paid at that level, and a surprising 2 million are actually paid less than that under various exemptions. If you are an employer paying the minimum wage or close to it, the Government has determined that your employees need help to pay for food, housing, and healthcare even if they have no family and no one to look after but themselves.  As we’ve been reminded this season, many of those workers also need help from families and coworkers to get by.

No doubt the reason low-wage companies continue to pay low wages is because there are plenty of workers willing to take jobs at those wages, and the need to pay more to avoid the risk of being unionized is
largely gone. But “can” and “ought” are not the same thing.  Nothing about the minimum wage implies that it is morally ok as long as you pay at least that much. It simply says that the government will prosecute you if try to pay less than that level.

A longstanding principle in all developed countries including the U.S. is that labor is not like a commodity where taking advantage of the market to squeeze down prices is a fact of life. Employees have human rights that do not disappear when they enter the workplace. Even in business law, principles like the “mechanic’s lien” say that employees should be paid before other creditors because they are more vulnerable than businesses and do not get profits to compensate them for risks.

We’re at an inflection point in the U.S., where some low-wage workers, unprecedented in decades, have actually begun to stage walk-outs, strikes and protests in recent weeks.

In Germany — where 9,000 workers are employed by Amazon — employees have just gone on strike.

Wage list

Wage list (Photo credit: Wikipedia)

I have — as we say here in sports-metaphor-obsessed-America — skin in this particular game.

I worked 2.5 years making $11/hour (the federal minimum is still $7.25/hour) selling costly outdoor clothing at an upscale mall, the subject of my book, “Malled: My Unintentional Career in Retail.”

No matter how insanely productive we were — one of us sold $16,000 worth of merch one holiday Saturday — we never got more hours or  serious raise (mine was 30 cents/hour) or a boost into a low-management position with a (barely) liveable salary.

The endless argument in favor paying crap is that low-wage workers are all teens, seniors and/or have no skills.

False! A recent survey of 436 New York City retail workers found that two-thirds of them are supporting another family member on their wages. Their average age? 24.

I also pay my assistants $15/hour, albeit part-time, about 10 hours a month. This year I paid out $1,5000 in wages to one worker, a significant amount for a one-person shop — me — and a healthy sum to a person new to my line of work, in effect, someone essentially entry-level I was training and paying.

I am appalled, disgusted and fed up with corporate greed, corporate welfare and the right-wing outrage that all low-wage jobs are low-skilled. They’re not.

Every single job adds profit to an employer’s bottom line or — in union-free America — it’s swiftly cut, with no severance or warning.

Walmart and MacDonalds workers suck up my tax dollars in Medicaid and food stamps because their greedhead CEOs think this is moral, equitable and justifiable way to treat workers.

I disagree.

How about you?

Time For Fair Wages?

In behavior, business, cities, journalism, Media, news, politics, urban life on May 14, 2011 at 1:03 pm
NYC: City Hall

New York's City Hall. Image by wallyg via Flickr

I’m not a political person. I can’t vote in the U.S. where I’ve lived since 1988, nor in Canada, my country of origin.

As a career journalist, a classic news reporter, my role is to observe and listen and relate the facts, not to jump into the fray and publicly express a strong opinion, taking a stand on the record on a hot political issue.

On May 12, I finally did.

A bill called the Fair Wages for New Yorkers Act has been proposed; it would require developers taking government subsidy to develop stadiums, conference centers and malls — all engines of economic development and jobs — to require tenants to pay $10/hour with health insurance, $11.50/hour without it.

That means a full-time worker would take home a munificent $20,000 or so per year — $10,000 less than has been calculated as the bare minimum in a place as costly as New York to survive, let alone thrive.

Because my new book “Malled: My Unintentional Career in Retail” focuses on the daily reality of low-wage work in retail, I was invited to speak out, and given three minutes to read my testimony to New York’s City Council.

The place was packed!

While a huge protest milled on the streets 14 stories below, some 80 people sat for long hours in a hearing room listening to alternating panels of those for the bill and those against it.

What a revelation it was…The power struggles! The threats! The pleas! The battle of the statistics!

No better theater could be found, even on Broadway.

Three men in costly suits argued against the bill — mercilessly hogging a huge chunk of time away from the rest of us — from the Economic Development Corporation. Their dire predictions of doom were relentless: thousands of jobs would be lost; angry developers would only take their projects to — gasp! — New Jersey or elsewhere; passing the bill would mean, they kept repeating, “a Faustian bargain” in which low-skilled workers would lose jobs to higher-skilled ones.

And all those lost construction jobs! Never mind the deliberately careless mixing of jobs that are union-protected and pay well (construction) with those that are not and do not (retail, typically $7-10 hour with no benefits.)

The hearings lasted from 1:00 p.m. to the evening. I finally got my two minutes (not three) at the mike at 6:00 p.m. — a wall clock with huge red numbers ticking away every second, a noisy blast ringing out twice to signal my time was up.

I argued in favor of the bill. Retail work is one of the few remaining with no emoluments to soften it: taxi drivers, waiters, deliverymen and chambermaids do receive tips. Not associates! Few receive raises or promotions and very few are unionized.

And consider this, from the Gotham Gazette:

In New York City, there are about 34,500 households, representing about 90,000 people, in the top 1 percent. On average, these households have annual incomes of $3.7 million. At the same time, about 900,000 people in New York City — about 10.5 percent of city residents — live in deep poverty. Deep poverty is half of the federal poverty line; for a four-person family, that means an income of $10,500. An annual income of $3.7 million translates into a daily level of $10,137 — more than the average annual family income of those living in deep poverty. According to state tax data, half of the households in New York City have annual incomes below $30,000, an amount that the top 1 percent receives over the course of a holiday weekend.

If New York City were a nation, its level of income concentration would rank 15th worst among 134 countries, between Chile and Honduras. Wall Street, with its stratospheric profits and bonuses, sits within 15 miles of the Bronx — the nation’s poorest urban county.

It was an amazing experience, and an exhausting one, to hear everyone from academics to clergymen arguing for and against this plan. I felt sorry for the politicians, weary and worn out yet hanging in hour after hour trying to make sense of it all.

In Australia — I learned recently — the minimum wage is $15 hour for those under 20; $20 an hour for those older. It’s hard to imagine American legislators ever imposing such high standards. Yes, costs would rise…They already are, and workers still struggle in poverty as corporate bosses keep raking in millions in compensation.

Have you spoken out publicly in favor or or against legislation? How did that feel? What was the result?

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