Archive for April, 2011

April 25, 2011

Minimum Wage Boost Wouldn’t Hurt Job Growth: Study

This article was written by Dave Jamieson, and reposted from the Huffington Post:

Raising the minimum wage wouldn’t cripple job growth and hurt businesses like some conservative groups have argued, according to a new study. To the contrary, it could pump money into the economy and reduce turnover in low-wage positions, the researchers found.

The current federal minimum wage is $7.25, or about $15,000 a year for a full-time job. Until 2007, the minimum wage had been set at $5.15 for over 10 years. Seventeen states currently have a minimum wage set higher than the federal standard, and a number of states are considering giving their standards another boost. The food and retail industries often fight such hikes, arguing that higher wages discourage growth, particularly in down economies.

Sylvia Allegretto, an economist at the University of California-Berkeley and the study’s lead author, believes those concerns are unfounded.

“A lot of people say we can’t increase the minimum wage during recessions because it’ll have this big negative effect,” said Allegretto, whose study was published in the journal Industrial Relations. “We didn’t find that — in general, or when there were recessions.”

Researchers, who focused specifically on teen employment, looked at every federal and state minimum-wage raise over the last twenty years, including during the recession from 2007 to 2009, and found that the effects of wage raises on job growth and unemployment didn’t change with the business cycle. Allegretto said a lot of the benefits of higher minimum wages tend to be overlooked — like higher morale and productivity, and less time spent searching for workers and training them.

Advocates of a minimum-wage boost often argue that the extra income for workers functions a lot like unemployment benefits or food stamps, in that it’s money pumped immediately back into local businesses. Jen Kern, who runs the minimum wage campaign at the National Employment Law Project, says a wage hike “could provide a boost to families and the economy, putting money into the hands of people who have no choice but to spend it.”

According to the Bureau of Labor Statistics, 1.8 million of the country’s 73 million hourly-paid workers were earning the federal minimum wage during 2010, with another 2.5 million earning even less than that. Minimum-wage earners tend to skew young, with workers under age 25 accounting for roughly half of those making the minimum wage or less.

Kern says if the minimum wage had kept pace with inflation since it’s peak in the 1970’s it would now be over $10. A survey conducted last year by the Public Religion Research Institute found that roughly two-thirds of Americans supported raising the federal minimum wage to at least $10 per hour.

April 23, 2011

Union Leadership Stands in the Way of Working People in Wisconsin

“Political rights do not originate in parliaments; they are, rather, forced upon parliaments from without. And even their enactment into law has for a long time been no guarantee of their security…

“Political rights do not exist because they have been legally set down on a piece of paper, but only when they have become the ingrown habit of a people, and when any attempt to impair them will meet with the violent resistance of the populace . Where this is not the case, there is no help in any parliamentary Opposition or any Platonic appeals to the constitution.”

– Rudolf Rocker, Anarcho-Syndicalism: Theory & Practice, 1947

In a surprise legislative maneuver last month, Republican legislators in Madison, Wisconsin, passed a bill which severely limits the collective bargaining rights of most state workers.

The move, which Democratic Senators hoped to prevent by leaving the state to prevent quorum, was pushed through by simply dividing the bill into two parts – one of which dealt specifically with collective bargaining rights, and the other simply with financial issues. State law requires that financial issues need a quorum of 3/5 of the legislature, whereas other issues – in this case,  the anti-union legislation – require only a simple majority.

They have, with the stroke of a pen, destroyed state workers’ right to bargain over wages that exceed inflation. They have made participating in legally protected acts of protest an offence for which you may be fired. Home health care workers, family child care workers, UW Hospitals and Clinics employees, and UW faculty and academic staff have lost their collective bargaining authority altogether, and state employees are now barred from negotiating a contract which lasts longer than a year.

All told, the bill affects nearly 175,000 state workers.

Despite its massive proportions, however, not once was the repeal of these rights mentioned in Scott Walkers’ campaign for Governor. If he had, there is a good chance he may not have been elected – 53% of Wisonsin residents oppose the bill, according to even conservative pollsters.

Workers in Wisconsin, for their part, were infuriated by the passage of the bill – in response, eight thousand union members and their supporters forced their way into the capitol building, which protesters had been pushed out of only weeks before.

The Democrats – and union leadership – respond:

Democrats didn’t miss a beat. While Wisconsin working people were in the midst of a battle over their livelihoods and their basic rights, the Democrats and their lapdogs in labor leadership were calmly conducting what can only be described as a fairly typical election campaign – lambasting Republicans for “going too far,” and praising the Democrats for their “fab 14.”

The unions, in their bid to begin reigning in workers who had only weeks before launched one of the brashest wildcat strikes in recent memory, flooded the streets of madison with speakers and petitioners to drown out the rank and filers on the ground leading chants of “strike! strike! strike!”

On every corner of the capitol, soap boxes, microphones and bullhorns could be found, each equipped with an emcee directing protestors to the nearest petitioner. Big name speakers were called in from all over the country to decry the republicans and extoll the democrats.

“We have a great president…” remarked Rev. Jesse Jackson at the capitol building. “We have a great president. But he cannot do it alone. When we do not fight, we weaken him. We do not vote… if we had used our power to vote, we would not have Mr. Walker as Governor tonight.” He then paused to lead the crowd in a chant: “when we vote, we win! When we vote, we win!”

Labor leadership couldn’t agree more. The Wisconsin Education Association Council issued a statement urging its members not to go to the capitol to protest, but instead to go back to work, assuring its workers that they would “not back down.”

“Given the abhorrent and illegal action taken by the Senate tonight, MTI has received many calls as to whether those represented by MTI will be at work tomorrow, but rather engage in political action,” MTI Executive Director John Matthews is quoted as saying in a statement. “MTI advises those it represents to report to work tomorrow. The Senate’s improper and illegal action will be challenged in court.”

The message was clear: workers were not to be allowed to devise their own strategy or take their own initiative in this fight. The Democrats would do that for them.

An Opportunity for the Rank and File to Rebuild the Labor Movement:

Depending on how we conduct ourselves in the months following this defeat, we may be able to look back on the events in Madison and conclude that the death of public sector unions was the best thing that ever happened to the modern labor movement. The established unions, after all, have proved to be real obstacles to workers in this country. Madison was clearly no exception.

The idea of the union, however – that workers, united by their common interests, can more effectively defend themselves together than alone – is as relevant today as it ever has been. Workers across the United States, and indeed throughout the world, are enduring the most vicious attacks on their livelihoods and rights as we’ve seen in years.

We need a labor movement without the stifling regulations and officials that call their workers back to work when a wildcat erupts. In fact, we not only need a labor movement that doesn’t stand in the way of its own members’ creativity and initiative, but one that encourages those traits. If we had that labor movement before Scott Walkers’ assault began, we would be seeing a very different picture in Wisconsin today.

April 19, 2011

Prank Article by Activist Group, U.S. Uncut, Causes GE Stock to Plumet

This article is reposted from libcom.org:

USA Today and the Associated Press fall for a prank article by activist group US Uncut, causing General Electric stock to plummet billions.

US Uncut, a burgeoning grassroots movement pressuring corporate tax cheats to pay their fair share, posted today a fake GE press release announcing that they would return their illegitimate (but legal) $3.2 billion tax refund, and that they would lobby to close the sort of corporate tax loopholes that had allowed them to skip taxes in the first place. Several major media outlets, including USA Today, ran the story as true. (Here is a link to the original USA Today story; here is the first article debunking the release.)

US Uncut quickly reacted with another release pretending to praise GE for this entirely unpredictable, unlikely, and in fact impossible act.

“This action showed us how the world could work,” said US Uncut spokesperson Carl Gibson. “For a brief moment people believed that the biggest corporate tax dodger had a change of heart and actually did the right thing. But the only way anything like this is really going to happen is if we change the laws that allow corporate tax avoidance in the first place.”

In the period the hoax was believed, GE’s stock plunged by .6% (far more than the value of the supposed return), then quickly recovered as soon as it became apparent the press had been duped. “Obviously, GE can’t possibly be expected to do the right thing voluntarily; their stock would keep plunging,” noted Gibson. “That’s why we must change the law.”
“GE’s tax avoidance is unpatriotic, it’s undemocratic, it’s unfair,” said Andrew Boyd, a US Uncut spokesperson. “It might be legal, but that’s only because GE has used its money and lobbying influence to buy the loopholes they’re now taking advantage of.”

US Uncut developed the project with help from the Yes Lab (
http://www.yeslab.org/
).

US Uncut, a grassroots movement organized through social media, connects corporate tax cheating to cuts in valuable public services. The group has lead over 100 actions nationwide against corporations who do not pay their fair share in taxes, bringing protests directly to the front door of corporate retail stores. US Uncut will hold more than 80 such events over the course of the upcoming Tax Day weekend.

“Billionaire corporations profit from the system of public services set-up by the government. It only makes sense for them to pay their fair share, just like everyone else,” said Gibson. “No corporation is an island, even if they hide all their profits in tropical tax havens.”

“While we all pay our taxes this weekend, Congress just passed the largest spending cuts in US history, much of it to social programs and investments for our country’s future,” said US Uncut DC organizer George Taghi, “Instead of slashing public services like Head Start and Pell Grants, why not go after corporations who don’t bother to pay any taxes at all?”

Composed of self-organized citizens through social media, including Facebook and Twitter, the magnetic message of US Uncut has spread like populist wildfire. Anger is rising as Americans are being forced to endure brutal cuts at both the federal and state-level, for a budget crisis they did not cause. Over $100 billion estimated annually could be gained, if corporations ended practices of tax avoidance.

“Billionaire corporations have already abandoned America for foreign tax havens,” said US Uncut spokesperson Ryan Clayton, “They pay zero income taxes here, hold their profits in international banks, and ship millions of American jobs overseas. That is un-American.”

For more information, please visit
http://USuncut.org

For time & locations of all the upcoming actions:
http://USuncut.org/actions

Follow

Get every new post delivered to your Inbox.

Join 75 other followers

%d bloggers like this: