SOUTH BEND, IN — Today, Mayor Pete Buttigieg laid out a comprehensive
set of policies under his latest proposal: A New Rising
Tide Agenda: Empowering Workers in a Changing Economy. As we enter a
new era marked by rapid technological and environmental transformation,
Pete lays out his plan to master those changes and ensure that every
American can share in our country’s growth. The policy proposal builds
the foundation to meet the economic challenges we face by raising wages
and affording American workers more protections, flexibility, and
control.
“Our economy is changing, and too many
Americans are working full time, some working two or even three jobs,
and still finding it impossible to make ends meet,” said Buttigieg.
“Things continue to get more expensive, but paychecks aren’t getting
any bigger. That’s why I’m proposing that we restore fairness and
balance to our economy, so that every American worker can afford a trip
to the doctor, can put themselves through college, and can save enough
to retire comfortably. Let’s make sure that in this coming era, the
tide continues to rise — and truly lifts all boats.”
The plan outlines bold actions to
restore workers’ rights that have been eroded by decades of anti-worker
policies by government and corporations alike, and ensure that all
workers in this country are treated with respect and fairly compensated:
Passing a $15 federal minimum wage and indexing wage growth;
Guaranteeing bargaining rights for all American workers -
including gig economy workers, fast food industry employees, and
subcontract workers;
Advocating for equal pay and promotion for equal work through
legislation requiring the public disclosure of the total pay gap at
every large company;
Putting in place measures to ensure employers can’t interfere
with union elections, including strong, multimillion-dollar penalties
that scale with company size and requiring equal airtime on company
time to ensure that workers also hear from union organizers ahead of
union elections;
Expanding bargaining rights, by enshrining the right to
multi-employer bargaining for workers at unionized worksites of
employers in the same line of work and expanding worker protections for
domestic and farm workers;
Instituting independent worker forums, free of employer
domination and control that are elected by workers in their workplace,
that are legally empowered to 1) meet and confer regularly with the
company about workers’ concerns and 2) relay information to workers;
Awarding government contracts to companies that take the high
road, meaning that they are unionized and offer good pay and benefits
to their workers.
We’re on the verge of a new American era, and this election is a
defining moment for our nation. Rapid developments in technology are
making changes to our lives that we could have never imagined just a
few years ago. We face a climate emergency that threatens communities
across America. How we manage the changes coming our way will define
not just the next four years, but the next century.
Pete has seen how politicians in Washington have let these problems get
worse and worse, and knows that we need a fundamentally new and
different approach to fix our broken political and economic system. We
need an economy where everyone has a role and everyone can succeed. We
need a society where everyone feels they belong, where our differences
make us stronger and move us forward, even in the face of a party and a
president that are taking us backward. And we need a President who
embraces the seriousness of the moment, but is free of the bad habits
and outdated thinking that got us here.
As the economy transforms, we need policies that can adapt to the
changing environment and give workers a fair chance.
Decades ago, we were promised a rising tide of economic growth that
would lift all boats. We got the rising tide–GDP went up, productivity
went up–but our paychecks didn’t show it. Working class wages have
stagnated since 1980.1 The need for new skills in a changing economy is
one piece of the puzzle. But the hard truth is that while the economy
changed, workers’ voices were systematically silenced. Our economy has
been tilted towards the wealthy and away from the middle and working
class because the people in power designed our laws and policies that
way. That’s especially true when it comes to workers of color and
women, who have historically been undervalued and excluded in the
workplace. To ensure every American has a fair shot, that has to
change. As we enter a new American era, it’s time we restored fairness
and balance to our economy, so that every American can share in our
country’s growth. And it’s time to help our nation’s workforce become
more resilient, inclusive, and flexible, and more easily adapt to our
dynamic, ever-changing economy.
The economy keeps growing, but since
1980 the typical worker's wages haven't kept up
[chart: Cumulative Percent Change
Since 1948]
Source: “The Productivity–Pay Gap” Economic Policy
Institute. August 2018
We all know that the federal minimum wage failed to keep up with our
changing economy, but that’s only part of the story. Economic models
for employment are also changing, which is affecting worker bargaining
power. At the same time, membership in private-sector unions–the same
unions that gave us the minimum wage, the 40-hour workweek, and worker
health and safety protections–has dropped to just 6%, in part because
employers have pressured and harassed workers into not organizing in
the first place. And membership in public sector unions has also fallen
in recent years as they have come under attack.2
Business models are changing bargaining power. For example, McDonald’s
expanded across America while keeping wages low by refusing to bargain
with workers who technically work for small local McDonald’s
franchises.3 More than half of workers in Google’s offices do not share
in Google’s success because they are domestically outsourced temps and
contractors,4 while millions of Uber and Lyft drivers lack basic
protections because they’re misclassified as independent contractors.5
Meanwhile, so-called “right-to-work laws” in many states have further
undermined unions and workers.6 All of these changes have shifted
bargaining power, bit by bit, from workers to their employers.7
[U.S. map: Republican Governor |
Democrat Governor \ Has right to work law]
That shift in bargaining power is a big part of why U.S. economic
growth is no longer broadly shared. Since the turn of the century–when
Pete and his generation entered the workforce–GDP growth has gone
entirely to the richest tenth of Americans.8 The 90% of Americans who
are not in that tiny tenth have experienced almost no income growth.9
From 1946 to about 1980, real GDP per worker doubled and incomes at
every level roughly doubled.10
But as real GDP per worker grew another 60% since then, working-class
incomes didn’t grow at all while upper class incomes leapt 120%.11 When
it comes to our actual incomes, GDP keeps getting it wrong. And when
you target the wrong number, you get the wrong policies. You can find a
job, but not one that supports you like it did for our parents.
Millennials are the first generation to not fare any better
economically than the generations that preceded them.12
[chart: Share of total income for the
top 10% of earners]
Economic
policies
have
to
be
focused
on
growing
incomes for the 90%. Targeting
the majority of Americans will lead to growth for the majority of
Americans. That’s why Pete will assess how the economy is doing by
income growth for the 90%–the vast majority of Americans who are not in
the richest tenth.13
At the end of the day, this is about fairness. Workers should have an
equal seat at the table. Corporations shouldn’t get to hide
behind legal technicalities that let them mistreat and push workers
down. If we work overtime hours, we should get overtime pay. We should
also be able to bargain with a company to determine pay and work
conditions. To make the 21st-century economy work for every worker, all
of our nation’s workers should have the bargaining power they need to
demand good jobs, fair pay, and safe workplaces. As the workforce
changes with more women and people of color, we also have a moral and
economic imperative to ensure historically excluded and undervalued
groups finally enjoy the benefits of strong bargaining and labor
protections.14 And we must ensure that equal pay for equal work becomes
a business priority just as it is a priority for women across the
country.
Pete is laying out a set of policies to empower workers and raise
wages, going above and beyond existing legislative proposals like the
Protecting the Right to Organize (PRO) Act. Pete’s goals are to
accelerate wage growth for the broad middle class and restore our
society’s economic compact. He will get there with policies aimed
at doubling unionization, restoring workers’ rights that have been
eroded by decades of anti-worker policies by government and
corporations alike15, and expanding labor rights to workers who have
been left out.
These policies will:
* Guarantee gig economy workers their labor rights,
including unionization
* Institute gender pay transparency
* Impose strong, multimillion-dollar penalties that
scale with company size when a company interferes with union elections
* Level the playing field in union elections by
requiring “equal airtime on company time,” so that workers hear from
union organizers and not just employers
* Enshrine the right to multi-employer bargaining
* Expand federal protections to cover farm and
domestic workers
* Establish a consistent preference in federal
government contracting for unionized employers that provide workers
with fair pay and benefits
Pete also strongly supports the Raise the Wage Act, the Protecting the
Right to Organize (PRO) Act, the Schedules That Work Act, the Healthy
Families Act, the Federal Employee Paid Leave Act, the Paycheck
Fairness Act, the Pregnant Workers Fairness Act, the EMPOWER Act, the
BE HEARD Act, the Domestic Workers Bill of Rights Act, and the FAMILY
Act. Some of these bills’ especially important provisions include
efforts to:
* Raise the federal minimum wage to $15 per hour and
indexing to wage growth
* End “right-to-work” laws, which ban union security
in collective bargaining
* Deliver card-check rights
* Guarantee workers access to paid sick leave and
paid family leave, and the predictable hours and wages they deserve
* Ensure that all workers can bargain with the
companies that actually control the terms of their employment
* Stop employers from permanently replacing workers
who strike, enhancing workers’ rights to secondary boycotts16
* Take steps to prevent union election interference
* Create safe, equitable, accessible, and fair
workplaces for women and all people that are free of harassment and
discrimination
* Include domestic workers, who have been
historically excluded from many employment laws, in common workplace
rights and protections
Pete also strongly supports the Public Service Freedom to Negotiate Act
and the Public Safety Employer Employee Cooperation Act, because
workers who choose to enter public service–whether federal, state, or
local–should not have to give up their organizing rights in the
workplace.
Guarantee workplace protections for all
American workers–including gig economy workers, fast-food workers, and
contract workers
Workers cannot have a level playing field on which to advocate for
better salaries, benefits, and working conditions if they are unable to
bargain with the company or companies that actually set the terms of
their employment. Yet all too often, U.S. workers today find themselves
shut out from bargaining with their real employers. For example, many
drivers on ridesharing apps are misclassified as independent
contractors, while many fast-food workers are considered employees of
local franchises but not of the national chains that control the terms
of their employment.17
Union Organizing
[Photo: Mayor Pete Buttigieg participates in the Fight for 15 Protest
in Charleston, South Carolina on Saturday June 15, 2019. (Chuck Kennedy
/ Pete for America)]
Over
15 million workers will have expanded rights and protections.
10.6 million independent contractorswill have access to bargaining
rights when they perform substantially the same work for the same
employer
1.4 million temporary help agency workers and almost 1 million contract
firm workers will be able to bargain with the firm that directly sets
the terms of their employment
2.6 million on-call workers will have protection under the Schedules
That Work Act
To ensure that workers can bargain effectively with the companies that
control the terms of their employment, Pete will:
* Allow gig economy workers to unionize and earn a fair wage.
Pete will support codifying the simple “ABC test” for classifying
workers nationally in order to prevent workers in the gig economy from
being denied minimum wage, overtime, and antidiscrimination
protections–and their ability to unionize. In order to classify a
worker as an independent contractor under the ABC test, an employer
must demonstrate that the worker (A) is free from the employer’s
control, (B) is performing work that is outside the employer’s usual
course of business, and (C) customarily works as an independent
business in that industry. The test will also ensure that Fair Labor
Standards Act (FLSA) protections like the minimum wage apply. As a
backstop to the ABC test and in order to guarantee collective
bargaining rights to gig workers, Pete will also propose amending U.S.
law to allow independent contractors with no employees, little capital
investment, and substantially similar working relationships with a
single company to unionize.
ABC
test: Protecting Workers' Right to Unionize
Most independent contractors are unfairly denied minimum wage,
overtime, antidiscrimination protections, and the ability to unionize.
Under the ABC Test, to classify as an independent contractor, an
employer must demonstrate that a worker is:
A: Free from the employer’s control
B: Performing work outside the employer’s usual course of business
C: Customarily an independent business in that industry
* Aggressively crack down on the payroll fraud of employers
misclassifying workers as “independent contractors.”
Employers who call workers “independent contractors” instead of
employees make it harder for workers to collect on the promise of core
protections like overtime, civil rights protections, and unemployment
insurance.18 In the short run, this behavior hurts responsible
employers who are playing by the rules.19Pete will support
substantially increasing funding for the Department of Labor’s Wage and
Hour Division (WHD), among other agencies that fight misclassification,
to ensure that employers are not misclassifying their workers as
contractors rather than employees. He will likewise empower agencies at
the state and federal level to share enforcement information through an
interagency misclassification taskforce. Pete also endorses the Payroll
Fraud Prevention Act,20 which makes misclassification a Fair Labor
Standards Act (FLSA) violation.
* Establish bright-line rules to ensure that workers can bargain
with the companies that set the terms of their employment.
In “fissured” industries like fast food and custodial services,
current policy leaves millions of workers able to collectively bargain
only with their nominal employers rather than the companies that
actually control their hours and working conditions.21 Companies like
Google should not be able to hire contractors – from janitors to food
service workers to managers to software engineers – that look like
employees, but who cannot bargain with Google because they technically
work for a staffing firm or other intermediaries. Pete will support
codifying a strong “joint employer” standard to fix.
Ensure equal pay and promotion for equal
work
On average, women are paid only around 80% of what men are paid.22 On
average, Black women are paid 61 cents, and Latinas 53 cents, for every
dollar paid to a white man.23 On top of that, women who become parents
permanently lose 30% of their earnings.24 These numbers reflect
systemic issues that not only result in employers underpaying women for
the same work that men do,25 but also steer women into lower-paid
occupations and industries26 and keep them out of managerial roles when
they have children.27 Both explicit discrimination and implicit bias
may be at play in perpetuating the pay and promotion gaps. A thriving
economy relies on empowering women’s potential.28
[chart: The Gender Pay Gap]
Source: “The Simple Truth about the Gender Pay Gap.” American
Association of University Women. Fall 2018.
To ensure that women are paid fairly, Pete will:
* Institute gender pay transparency.
Closing the gender pay gap requires not only that women are equally
compensated, but also that women are promoted into and retained in the
well-paid jobs they deserve. Transparency can help.29 The public should
know which companies are doing right by their female employees with
fair pay, promotions, and family-friendly work arrangements, and which
ones have glass ceilings.30 Pete will propose legislation to
immediately make public the total pay gap at every large company: for
every dollar that the company pays to male employees as a whole, how
much does it pay to female employees?31 Unlike other data reporting
proposals, the total pay gap does not require the government to collect
any new information, can be released immediately, and is hard to
game.32 Companies that employ mostly men, or that employ only men in
their good-paying jobs, will have especially large pay gaps compared to
their competitors. Those companies will face public pressure to pay
women equally for equal work within jobs and also to hire, promote, and
retain women throughout the pay scale. Total pay gap transparency would
be a down payment on more granular reporting requirements, such as by
gender, race, and job within companies–building on the Obama
Administration’s Equal Opportunity Office compensation data collection.
* Pass the Paycheck Fairness Act.
The Paycheck Fairness Act, which the House of Representatives passed
with bipartisan support in 2019, would ban employers from using an
employee’s salary history to determine wages, ensure that workers have
the right to discuss wages without retaliation, and require employers
to justify any pay discrepancies.33
* Pass anti-harassment laws and gender nondiscrimination laws to
help address other factors that impact the gender wage gap.
The pay gap has many causes, including harassment in the workplace and
discrimination against women for things like pregnancy. That’s why Pete
endorses the EMPOWER Act, to limit companies’ ability to keep
harassment survivors quiet, the BE HEARD Act, to extend civil rights
law prohibiting harassment to all workers and workplaces, and the
Pregnant Workers Fairness Act, to ensure pregnant workers are not
forced out of work when they need reasonable workplace accommodations.
Pete will also evaluate child care and school enrollment and scheduling
policies that can better align children’s school schedules with family
and caregivers’ work schedules for the benefit of all.
Gender
pay transparency at Pete for America
There is no gender pay gap on the campaign.
Ensure employers can’t interfere with
union elections
Shockingly, U.S. employers face no monetary penalties for illegally
interfering with workers seeking to organize a union.34Not only that,
but employers can legally flood their workers with anti-union
propaganda on company time while preventing union organizers from
talking to workers.35 To stop employers from interfering with worker
choice and to guarantee free and fair union elections, Pete is
proposing:
* Introducing multimillion-dollar penalties for employer
interference in union elections and workers’ rights.
Small penalties will not deter bad behavior. Pete will support
empowering the courts and the National Labor Relations Board (NLRB) to
assess civil penalties on interfering employers that scale
automatically with the company’s revenue. Separately, he will also
support improving non-monetary penalties such as streamlining
reinstatement for workers who are fired for participating in an
organizing drive or other concerted activity, as proposed in the PRO
Act.36
Multimillion-Dollar Penalties for
Employer Interference in Union Elections
Small penalties won’t deter bad behavior for large companies.
Penalties should scale based on company revenue.ScaledPenalties
* Ensure that workers can hear from union organizers.
Employers have an enormous built-in advantage to convey their
anti-union message to employees through meetings and other
communications. Pete will support legislation to provide union
organizers access to employees on company premises to talk about the
benefits of unionization. This includes “equal airtime on company
time,” meaning that employers that convene mandatory anti-union
meetings during the workday must provide the same amount of company
time to union organizers to make their case. Equal airtime is fully
consistent with the proper interpretation of the constitutional
principles at stake.
Expanding bargaining rights
The cornerstone of current U.S. labor law, the National Labor Relations
Act, was designed in 193537
for an economy in which almost all employers directly employed all of
their workers, and lawmakers designated the individual employer as the
default level for collective union bargaining in most cases. Workers
would join a union at a single employer and engage in collective
bargaining at the worksite level. Today, our modern economy is much
more fragmented, threatening worker bargaining power even in industries
where unions have traditionally been strong. Worker bargaining power is
limited when workers are spread across many different competing
employers. That problem can be fixed by allowing workers across
multiple employers in the same business to bargain collectively. To
help empower workers in the modern economy, Pete will, for the first
time in American history, give working people the right to demand
access to multi-employer bargaining.
This means he will:
* Empower workers to band together outside the firm through
multi-employer bargaining.
Workers at unionized worksites of employers in the same line of work
who compete with one another will be allowed to decide to bargain on a
multi-site or multi-employer basis, and their employers will be
required to bargain toward a collective bargaining agreement. For
example, workers at three unionized fast-food restaurants will be able
to decide collectively to bring their three employers to a single
bargaining table and negotiate a single pay package for all three
restaurants. And in industries without large worksites–such as domestic
and home health care workers who are disproportionately women and
people of color38 and who have long been prevented from organizing–must
have mechanisms for exercising worker bargaining power across employers
to set a single standard for employment conditions in a local area. 39
With cities like Seattle leading the way on standards for domestic
workers, local experimentation should receive legal support at the
national level. Pete would direct his Labor Secretary to identify other
similar areas where national policy can support or scale local
innovations.40
Bargaining
Table
Workers from different companies within the same industry will be able
to join forces to require their employers to bargain towards a
collective bargaining agreement.
* Expand worker protections for farm workers and domestic workers.
Federal labor and employment law does not adequately protect farm
workers or domestic workers seeking to organize.41 This exclusion from
federal protections falls hardest on people of color. 42 Pete would
ensure that these workers are protected by labor and employment law,
and that they are empowered to continue and expand the use of existing
strategies, like consumer pressure campaigns and worker-driven social
responsibility programs, to achieve a more dignified workplace.43
This will help protect:
2 MILLION
domestic workers
856,300
agricultural workers
Award government contracts to companies
taking the high road
Since the 1960s, the federal government has led the way in fighting
discrimination by requiring hiring practices that promote diversity at
the many companies seeking to do business with it.44 In our changing
economy, we need to use the power of the federal government to reward
companies for taking the high road and treating their workers fairly.
To that end, Pete will:
* Give preference in government contracts to firms that treat their
workers well.
As it stands, companies that take the high road and treat their workers
well are at a competitive disadvantage in bidding for government
contracts. To give an affirmative leg up for high-road employers, Pete
will support legislation to give preference in the bidding process for
federal contracts to companies that are unionized and offer good pay
and benefits to all their workers. The federal government should not be
using taxpayer money to support companies that do not support their
workers. Pete would also prioritize strengthening and providing
resources to the Office of Federal Contract Compliance Programs.
Ensure workers access to the predictable
hours, wages, and support they deserve
Too many workers today are stuck in jobs that do not pay fair wages or
provide them with the predictable schedules that they need to look
after their families. To ensure workers have access to fair wages and
predictable schedules, Pete will:
* Ensure workers have access to paid sick leave and paid family
leave–no matter where they work.
Almost 30% of private-sector workers in the United States lack access
to paid sick leave, and in some industries it’s over 60%.45 In addition
to passing the Healthy Families Act, Pete would set up a national
system of paid sick leave. For workers who do not receive at least 7
paid sick leave days from their employer, even under the Healthy
Families Act, their employers would be required to pay in the
equivalent of one hour of pay for every 30 hours they work, up to a
total of 56 hours, into a state fund that these workers could draw
from. If workers work for more than one employer, all employers they
work for would pay in. Workers would be allowed to roll over these days
from year to year. Workers should also have access to paid family and
medical leave for more serious health and family caregiving issues,
including parental leave. This is why Pete strongly endorses the FAMILY
Act, to create a national paid family and medical leave fund similar to
successful policies in several states.
* Protect undocumented workers from retaliation when reporting
labor violations.
Employers should not be able to retaliate against any worker who wants
the minimum wage enforced, supports union organizing, or seeks other
protections under labor and employment laws. Making those protections
clear and providing full remedies for undocumented workers is
important–both to protect those workers from threats like being
reported to ICE and also to avoid creating downward pressure on
everyone’s work conditions and pay.46 Pete would also support
legislation that would provide visas for victims of labor and
employment law violations who are helpful in prosecuting those
violations–just as we do for victims of domestic violence, sexual
assault, and trafficking crimes.
* Ensure visa portability.
Workers who come to this country should not have to continue working
for an abusive employer simply because their visa is tied to that
employer. That not only hurts workers with visas by enabling employers
to exploit them, it also hurts all workers by lowering labor standards
across the board. Pete will propose reforms to temporary work visas so
that workers can move to another employer in their industry and keep
their visa. Pete would also support legislation that would provide
greater transparency for temporary work visa programs.
* Restore overtime regulations that would protect 8 million more
workers.
47 President Trump has rolled back the new overtime regulations from
the Obama Administration, replacing them with ones that protect
millions fewer workers–workers who are no longer guaranteed
“time-and-a-half” pay when they work more hours for their employer.
Pete would restore the Obama-era overtime regulations to ensure workers
are protected and would pass legislation to strengthen overtime rules
moving forward by ensuring that, in the absence of a collective
bargaining agreement, overtime kicks in after 8 hours per day (in
addition to over 40 hours per week) or over 7 days in a row.
* Fund enforcement that would deal with the massive problem of wage
theft.
Too many workers are not paid the wages that they have earned from
their employer. Almost one-fifth of low-wage workers experience
wage theft.48 Pete would ensure that federal agencies have all the
resources they need to go after employers who don’t even pay their
workers the minimum wage and overtime they’re owed–and that employers
who steal from their workers face serious penalties.
* Ensure that workers have access to predictable schedules – and if
they don’t, that they are adequately compensated.
Workers should know that they are going to get the predictable hours
they need so that they can plan their lives and pay their monthly
bills. Employers should not be able to require workers to be on call,
or to demand that workers be at the workplace with little notice,
unless they compensate those workers accordingly.49 The Schedules That
Work Act, which Pete strongly supports, would ensure that workers have
access to predictable schedules, or receive compensation for their
irregular schedule.
* Endorse the Domestic Workers Bill of Rights.
Today, domestic workers are excluded from basic employment and labor
protections, which leaves workers who are disproportionately women, and
particularly women of color, open to exploitation.50That’s why Pete
endorses the Domestic Workers Bill of Rights Act which provides
domestic workers access to the same employment rights as other
workers–from overtime pay to antidiscrimination–and creates standards
like harassment protections and fair scheduling to address the unique
nature of their working conditions.
Pass a $15 federal minimum wage indexed
to wage growth
For too long, the typical worker’s wages have not kept up with expenses
like health care, housing, and education. Pete wants to make sure that
workers who are giving their all to an employer are getting paid fairly
in return. By raising the federal minimum wage to $15, we can start
taking steps to make sure that the economy is working for all workers.
Over 33 million workers would benefit from raising the federal minimum
wage to $15 by 2025.51 We also need to index the federal minimum wage
to median wage growth so that moving forward, both workers and
employers know with certainty what it will be in the years to come.
That’s why Pete strongly endorses the Raise the Wage Act.52 An
important part of the Raise the Wage Act is ending the subminimum wage
for disabled workers and ending the tipped minimum wage. No one in the
United States should be exempted from minimum wage laws. This practice
is indefensible.
As we enter a new American era, our economy will continue to shift
beneath our feet. But what should never change is our commitment to
empower workers and ensure that they can afford to live a decent life.
With these policies, we will lift up American workers and their wages,
while equipping both workers and employers with the tools they need to
thrive in a 21st-century economy. Let’s make sure that in this coming
era, the tide continues to rise–and truly lifts all boats.
Wakabayashi,
Daisuke. “Google’s
Shadow
Work
Force:
Temps
Who
Outnumber Full-Time Employees.” The
New York Times. May 28, 2019. When companies do well, employees share
in the benefits. See: Kline, Patrick, Neviana Petkova, Heidi Williams,
and Owen Zidar. “Who Profits from Patents? Rent-sharing at Innovative
Firms.” Quarterly
Journal of Economics, forthcoming 2019. Domestic outsourcing
reduces wages: Goldschmidt, Deborah, and Johannes F. Schmieder. “The
Rise of Domestic Outsourcing and the Evolution of the German Wage
Structure.” Quarterly
Journal of Economics 132, no. 3 (2017): 1165-1217.
Since
2001, income per adult rose by 21% among the top tenth but rose by only
4% among the remaining 90% and fell by
5% among those not in the top half. See column 1 of sheets TB6-TB9 from
Piketty,
Thomas,
Emmanuel
Saez,
and
Gabriel Zucman. “Distributional
National Accounts: Methods and Estimates for the United States.” Quarterly
Journal
of
Economics,
133(2),
2018,
553-609.
The
exact numbers are the following. From 1946 to 1979, real GDP per adult
grew 101%–with the bottom half growing 110%, the 50th-90th percentiles
growing 108%, and the top 10% growing 88%. From 1979 to 2016 (the
latest year available), real GDP per adult grew 59%–with the bottom
half growing 2%, the 50th-90th percentiles growing 46%, and the top 10%
growing 109%. See column 1 of sheets TB5-TB9 from
Piketty,
Thomas,
Emmanuel
Saez,
and
Gabriel Zucman. “Distributional
National Accounts: Methods and Estimates for the United States.” Quarterly
Journal
of
Economics,
133(2),
2018,
553-609.
Mayor
Pete will do so by directing his Bureau of Economic Analysis and
Department of Labor to produce headline economic statistics for the
bottom 90% of the income distribution, not just total GDP. The proposed
Measuring Real Income Growth Act would direct the Bureau of Economic
Analysis to produce growth statistics for each tenth of the income
distribution, which could be used to produce headline statistics for
the 90%.
For
a discussion of the NLRA’s exclusion of agricultural and domestic
workers, for example, please see: Perea, Juan F. “The Echoes of
Slavery: Recognizing the Racist Origins of the Agricultural and
Domestic Worker Exclusion from the National Labor Relations Act.”
2011. Ohio
State
Law Journal 95
(1).
Secondary
boycotts are when workers put pressure on an employer who is not their
primary employer. See: “Section
8(b)(4).” National
Labor Relations Board.
These
statistics assume binary gender identity. More work is needed to
quantify and develop solutions for pay gaps along different gender
identities. The number cited here is
for
full-time
full-year
workers
in
median earnings data.
Kleven,
Henrik, Camille Landais, Johanna Posch, Andreas Steinhauer, and Josef
Zweimüller. “Child Penalties Across Countries: Evidence and
Explanations.” In American Economic Review Papers and Proceedings, vol.
109, pp. 122-26. 2019.
Kleven,
Henrik, Camille Landais, and Jakob Egholt Søgaard. “Children and Gender
Inequality: Evidence from Denmark.” American
Economic Journal: Applied Economics.
Forthcoming 2019.
Economists
estimate that investing in and empowering women caused one-third of
U.S. real GDP-per-capita growth 1960-2010. See Table 7 of Hsieh,
Chang-Tai, Erik Hurst, Charles I. Jones, and Peter J. Klenow. “The
Allocation of Talent and U.S. Economic Growth.” Econometrica.
Forthcoming 2019.
Bennedsen,
Morten, Elena Simintzi, Margarita Tsoutsoura, and Daniel Wolfenzon. “Do
Firms Respond to Gender Pay Gap Transparency?” NBER Working Paper 25435.
Family-friendly
work arrangements are key for gender pay equity. See: Goldin, Claudia.
“A Grand Gender Convergence: Its Last Chapter.” American
Economic Review, 104(4): 1091-1119. 2014.
For
example, if Acme Inc. in 2018 paid a total of $100 million to men and
$70 million to women, then the government would publicly report that
Acme has a 30% pay gap. This proposal requires no new data collection
from businesses: the Labor Department can simply use the Treasury
Department’s W-2 and gender data to add up all the dollars each company
pays to each gender. Measuring the total pay
gap complements and improves upon measuring
the median or mean pay
gap,
which companies can game by laying off low-paid women. Under
Pete’s plan, a company that fails to retain women at any income level
would look worse, not better.
The
2010 Dodd-Frank requirement that companies release CEO pay data took
eight years in the courts before companies complied. Luckily, companies
cannot drag their feet on the total pay gap because the government does
not need any new data from them. The Labor Department can simply use
the Treasury Department’s W-2 and gender data to add up all the dollars
(wages plus benefits like health care and retirement contributions)
each company pays to each gender. Measuring the total pay
gap is harder to game than the median or mean pay
gap, which companies can game by laying off low-paid women. Under
Pete’s plan, a company that fails to retain women at any income level
would look worse, not better.
Our
cities have begun to pioneer new structures to lift domestic workers’
wages and protections, like Seattle’s
Domestic
Workers
Ordinance. Multi-employer bargaining will spur
more innovations.
This
policy will support existing multi-employer bargaining in industries
like construction.
“Raising
the
Federal
Minimum
Wage
to
$15 by 2025 Would Lift Wages for Over 33
million Workers.” Economic Policy Institute. July
17, 2019. The 33.5 million number includes directly affected workers
and also workers who benefit as the pay rises ripple up the pay ladder:
about 40% of wage gains after a minimum wage increase accrue to workers
above the new minimum. See: Cengiz, Doruk Arindrajit Dube, Attila
Lindner, and Ben Zipperer. “The Effect of Minimum Wages on Low-Wage
Jobs” The
Quarterly Journal of Economics. Forthcoming 2019.