The Wall Street Journal reports that labor costs have risen in the first quarter of 2015. Private-industry wages and salaries increased 2.8% in early 2015 in what has been termed the “strongest year-over-year growth” since the third quarter of 2008. At the heels of major companies such as McDonald’s and Wal-Mart announcing wage hikes for workers (though not for those employed by franchisees), more companies are contemplating wage increases. The data suggests that workers’ wages are finally beginning to climb after remaining at 2% annual growth for the past few years. However, some economists caution against sudden optimism. According to Ted Wieseman at Morgan Stanley, the apparent wage increase is due to a number of factors, including the fact that most of the increase seems to reflect the work of those whose pay includes incentives (like sales commissions). Wieseman notes that “[t]here’s been significantly less recent underlying acceleration in regular pay than suggested by the headline results.”
At the same time, unemployment claims fell to their lowest point in 15 years. The number of claims numbered at 262,000 and was the lowest level for initial claims since April 15, 2000. The number of unemployment claims is a reasonable proxy for economic health and varies widely from week to week. Still, many hope that the data will “help ease worries about the resilience of the U.S. job market.” For example, although nonfarm hiring has slowed considerably in recent months, the industry added 3.1 million jobs in 2014. In March 2015, the unemployment rate was 5.5% compared with 6.6% in March 2014 and 7.5% in March 2013.
According to Politico, Democrats are proposing a $12 minimum wage which has prompted debate amongst economists over whether such a rate would be too high. Sen. Patty Murray (D.-Wash.) and Rep. Bobby Scott (D.-Va.) propose incremental increases from now until 2020, after which “the wage minimum would be indexed to increases in the median wage.” The proposal would also eliminate the existing federal tipped minimum wage (currently $2.13) and would require employers to pay the same federal minimum wage for all workers. Politico argues that the bill “stands little chance of passing the Republican-dominated House and Senate” and would simply serve to “renew debate.” David Cooper, an economic analyst at the Economic Policy Institute argues, on the other hand, that the bill is appropriate because it would “restore the minimum to its level (after inflation) during the prosperous 1960s.”
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April 2
Local academic unions face pushback in negotiations
April 1
In today’s news and commentary, Aramark workers at Philly stadiums reach tentative agreement, Crystal Carey is poised to take general counsel at NLRB, President Trump’s nominees for key DOL positions, and the National Treasury Employees Union sues the Trump administration. UNITE HERE Local 274, which represents thousands of food service workers in the Philadelphia region, […]
March 31
Trump signs executive order; Appeals court rules on NLRB firing; Farmworker activist detained by ICE.
March 28
In today’s news and commentary, Wyoming bans non-compete agreements, rideshare drivers demonstrate to recoup stolen wages, and Hollywood trade group names a new president. Starting July 1, employers will no longer be able to force Wyoming employees to sign non-compete agreements. A bill banning the practice passed the Wyoming legislature this past session, with legislators […]
March 27
Florida legislature proposes deregulation of child labor laws, Trump administration cuts international programs that target child labor and human trafficking, and California Federal judge reversed course and ruled that unions representing federal employees can sue the Trump administration over mass firings.
March 25
Illinois warehouse quota bill vetoed; Minnesota residents organize; circuit split on NLRB deference continues