The Politics of Labor
Often, CEOs get raises even when business performance slumps. Hourly workers get pink slips, and those still on the job work longer hours.
In 2004, Americans worked an average of 1,824 hours per year. The OECD average was 1,628 hours, from 1,357 in the Netherlands to 1,826 in New Zealand (a much more agrarian country than the US).
And how do we feel about this? According to Pew Research, compared to two or three decades ago, we believe we have less job security, more on-the-job stress, reduced retirement benefits, and reduced health coverage.
Poverty, Minimum Wage
And with the poverty line set at 50% of median, the US leads here, too, with 17% of the population compared with 14.3% in Australia and 5.4% in Finland.
Yet Congress remains bogged down on raising the minimum wage in the US. The real minimum wage (contrasted with nominal) has been on a fairly steady decline since the late '60s. Since its creation in 1938, 1997-2006 is the longest stretch with no adjustment in the federal level ($5.15/hour).
There is a perception that only teenagers make minimum wage. However, according to the Bureau of Labor Statistics, 59.8 percent of all wage and salary workers are paid an hourly wage. Of minimum wage workers, eight in 10 are 25 or older. Only 7% are teens aged 16-19. Of the four census regions, red states (the south and the mid-west) have the most minimum wage workers.
Over-the-top Rhetoric
High-ranking political leaders seem, by their rhetoric, to believe class war is a good re-election gambit. From the San Francisco Chronicle
U.S. Education Secretary Rod Paige labeled one "a terrorist organization." Former House Majority Leader Tom DeLay, R-Texas, called them "a clear and present danger to the security of the United States." And U.S. Rep. Charles Norwood, R-Ga., claimed they employ "tyranny that Americans are fighting and dying to defeat in Iraq and Afghanistan" and are thus "enemies of freedom and democracy," who show "why we still need the Second Amendment" to defend ourselves with firearms.
Who are these supposed threats to America? No, not Osama bin Laden followers, but labor unions made up of millions of workers -- janitors, teachers, firefighters, police officers, you name it.
Bashing organized labor is a Republican pathology, to the point where unions are referenced with terms reserved for military targets.
Why union-bashing? Unions "cost" business more money -- on average, union workers have better benefits and greater wages than non-union workers. And there appears to be a ripple effect, as well. "Princeton researchers found in industries that are 25 percent unionized, average nonunion workers get 7.5 percent more compensation specifically because of unionization's presence."
And even though the conventional wisdom is that we independent -- individualistic -- Americans eschew unions on principle ... data suggest otherwise. "A 2005 nationwide survey by respected pollster Peter Hart found 53 percent of nonunion workers -- that's more than 50 million people -- want to join a union, if given the choice."
Perhaps this disconnect -- worker concerns about job security, CEO compensation -- will become an issue in the fall elections. If it does, it's the GOP that will draw the short end of the stick.
Also, see Mixed Layoff News; GM Lands a Broadside, As Goes GM ..., Senate Hears Pension Plan Woes, Is There A US Pension Crisis?, Pension Protection Act of 2006
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