Are wages stagnating? It depends who you ask. The Wall Street Journal reports the employment-cost index, which measures workers’ wages and benefits, rose 0.6% this quarter. But even with the slight rise in wages and benefits, Americans’ personal income has barely inched and the employment rate remains steady. The New York Times’ Steven Greenhouse presents an even bleaker picture: companies rather than paying higher wages across the board, companies give bonuses to top-star performers and managers who constrain labor costs. Labor economist Lawrence Katz tells the Times, “The Labor share has declined more than you would think in light of the tightening of the labor market…. It suggests we’re seeing a decline in worker bargaining power.”
A California judge issued a temporary restraining order against Alliance College-Ready Public Schools to prevent the charter group from interfering with unionization efforts, reports the Los Angeles Times. Union leaders allege that Alliance intimidated employees, conducted surveillance on teachers and blocked organizers at school sites. The charter organization and a group of teachers at the school have been in a battle since March, when the teachers announced a drive to unionize.
The Department of Labor found that J&J Snack Foods Corp and two staffing firms cheated hundreds of temporary production line workers out of more than $2.1 million in wages and liquidated damages. Like many companies, the manufacturer and distributor of food and beverages contracted with temporary staffing agencies, and it is now being held as a joint employer. Relying on contracted agencies exacerbates risks for workers. According to Dr. David Weil, “as profit margins get squeezed along the labor supply chain, there is a greater likelihood of wage violations.”
Taxis may be driving toward unionization. Lydia DePillis at the Washington Post explains the NLRB’s recent decision on classifying taxi drivers in Tucson, Ariz. as independent contractors. Under the NLRB’s new test, which emphasizes entrepreneurial opportunity, a regional director found that the cab drivers are not independent contractors. Unlike in more urban areas, Tucson drivers rely on centralized dispatches to find customers, and struggle to cultivate clients to survive independently. With the legal question resolved, the next is political: now the 200 drivers in Tucson may hold an election to decide to unionize.
Daily News & Commentary
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June 18
Teamsters re-elect Sean O'Brien; Teamsters and DOJ move to end federal monitorship.
June 17
Bezos predicts AI will create labor shortage; Canada introduces legislation to strengthen forced labor import ban.
June 16
Hyundai workers approach strike; NTEU sues the IRS for First Amendment violation; former federal employees run for Congress in Trump pushback
June 15
Apple wins summary judgment on FLSA and state law worker claims; Werner truckers reach $18 million settlement; California court uphold finding that Tesla yard hostlers are exempt from the FAA.
June 14
Chocolate Workers union ratifies agreement with Hershey Entertainment & Resorts; Minnesota Twins’ concession workers announce plans to strike.
June 12
Third Republican NLRB member sails through appointment hearings; UAW secures symbolic deal with General Motors supplier.