labor education service university of mn the conservative economic assault on workers

Labor Education Service University of MN

The Conservative Economic Assault

on Workers

The Conservative Economic Assault

on Workers


What do we mean by the American Dream?

What’s been happening to this dream?


In the richest nation in the worldIn the richest nation in the world

• Over 40% of all female workers still earn less than $18,000/year.

• 25% of all U.S. workers earn less than $18,000/year.

2003 data from U.S. Census Bureau; Children’s Defense Fund, Kids Count 2000

• More than 1 in 5 children still live in poverty, the highest among 17 industrial nations.


Unions and Politics Matter

Unions and Politics Matter


+33%+35%

+22%

+45%

+30%+30%

+25%

0%

10%

20%

30%

40%

50%

All wkrs Women AfricanAm

Latinos Health Ins Pension Disability

The Union Difference

U.S. Department of Labor, Employment and Earnings, 2002


Unions MatterUnions Matter

80

85

90

95

100

105

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1996

2003

Ind

ex (

1975

= 1

00)

Bureau of Labor Statistics

Real Wages

Union Density


Union Density by State - 1983

10% to 20%

21% & over

0% to 9%Source: U.S. Department of Labor


Union Density by State - 2003

0% to 9% 10% to 20% 21% & overSource: U.S. Department of Labor


Since 2001…

Poverty

12.7%

45.8 million

Uninsured workers

Real wages Stagnant

Data from U.S. Census Bureau


So …

If you were a corporation out to increase profit and lower worker wages …

What would you do?Who would you target?


TheConservative

Corporate Strategy

TheConservative

Corporate Strategy


Defang unions and others who could fight back.

Defame government and make it the problem.

Defund public services by cutting taxes.

Taxes

Deregulate worker and environmental protections.


Then …

Privatize public

services to the lowest

bidder.

Outsource good

jobs to find cheap

labor.

Profit by cutting

worker pensions

and wages.


Even Business Week acknowledged in 1974:

...it will be a hard pill for many Americans to swallow -- the idea of doing with less so that big business can have more...."


“My goal is to cut government in half in twenty-five years, to get it down to the size where we can drown it in the bathtub.”

"My ideal citizen is the self-employed, homeschooling, IRA-owning guy with a concealed-carry permit. Because that person doesn't need the goddamn government for anything.“

Defame government and make it the problem.

-- Grover Norquist Key advisor to President Bush


This is really what drowning government in a bathtub looks like.


Defund public services by cutting taxes.

Taxes

•Government (e.g. prevailing wage inspectors)

•Education (e.g. public schools)

•Health care (e.g. Medicare)

•Infrastructure (e.g. roads/bridges)

•Social programs (e.g. social security)


Here’s one IRS form you’ll probably never need!


Who benefited from Bush’s $1.3 trillion 2001 Tax CutWho benefited from Bush’s $1.3 trillion 2001 Tax Cut

29.2%

37.6%33.2%

Data from AFL-CIO Voice@Work

Bottom 80% Top 1%

Next 19%


Tax cuts have benefited the wealthiest Americans

Tax cuts have benefited the wealthiest Americans

Top 1% Families

Average Family

0

10

20

30

40

50

60

70

80

90

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995

Fede

raL

Inco

me R

ate

79%86%

69%

36%

25%

33%

6%

20%25%


Middle income families have seen their taxes rise since

1977

Middle income families have seen their taxes rise since

1977

-$50,000

-$40,000

-$30,000

-$20,000

-$10,000

$0

$10,000

Cha

nge

in T

ax B

ill $311 tax hike$311 tax hike

$46,792 tax cut$46,792 tax cut

Middle IncomeMiddle IncomeFamiliesFamilies

($31,000 - $47,000)($31,000 - $47,000)

Wealthiest 1%Wealthiest 1%FamiliesFamilies($330,000+)($330,000+)

Analysis of Congressional Budget Office Figures by Mishel and Bernstein, The State of Working America, 1996-97


Deregulate worker and environmental protections.

•Industries–Trucking, telephones, airlines

–Energy (e.g. California)

•Worker protections–OSHA–Environmental protections


Bush announces his “free trade” economic programBush announces his “free trade” economic program


NAFTA’s Devastating EffectsNAFTA’s Devastating Effects

• 750,000 jobs (mostly in manufacturing) lost in the United States

• Mexican manufacturing wages drop 23%


“Ideally, you’d have every plant you own on a barge.”

-- John F. WelchFormer Chairman and CEOGeneral Electric

Source: “Moneyline,” CNN, 1998.


• Public employees. New trade agreements will force privatization of public services.

• Construction workers. New trade agreements attack prevailing wage laws and project labor agreements, and propose allowing imported construction workers to work under the laws of the country the workers came from.

• Environmental and human rights. New trade agreements seek to eliminate many environmental and worker protection regulations and human rights laws.

The new trade deals go much further

The new trade deals go much further


“Until we get wage levels down much closer to those of the Brazils and Koreas, we cannot pass along productivity gains to workers’ wages and still be competitive.”

-- Stanley Mihelick Executive VP, Goodyear


Defang unions and others who could fight back.

•Make unions the enemy

•Attack workers right to organize

•Silence workers voices

•Use “wedge” issues to divide workers’ political strength


Define union members as enemies

…the union bosses’ selfish drive to use the national emergencies we face today

to grab more power presents a clear-and-present-danger to the

security of the United States.


… and again.

… [I] ask you to support an urgent new project to halt the shameless attempt by Big Labor Bosses to expand their power at the expense of our homeland security

and troops overseas.


• 91%91% of employers force employees who of employers force employees who want to join a union to attend mandatory want to join a union to attend mandatory anti-union meetings.anti-union meetings.

• 80%80% require front-line supervisors to require front-line supervisors to attend training on how to undermine attend training on how to undermine unions.unions.

• 80%80% hire outside consultants to run anti- hire outside consultants to run anti-union campaigns.union campaigns.

• 50%50% threaten to close their business if threaten to close their business if employees form a union.employees form a union.

• 31%31% illegally fire union organizers. illegally fire union organizers.

• 33%33% refuse to negotiate a contract. refuse to negotiate a contract.

• 91%91% of employers force employees who of employers force employees who want to join a union to attend mandatory want to join a union to attend mandatory anti-union meetings.anti-union meetings.

• 80%80% require front-line supervisors to require front-line supervisors to attend training on how to undermine attend training on how to undermine unions.unions.

• 80%80% hire outside consultants to run anti- hire outside consultants to run anti-union campaigns.union campaigns.

• 50%50% threaten to close their business if threaten to close their business if employees form a union.employees form a union.

• 31%31% illegally fire union organizers. illegally fire union organizers.

• 33%33% refuse to negotiate a contract. refuse to negotiate a contract.

Growing Union Busting TacticsGrowing Union Busting Tactics


Who’s Winning –Who’s Losing?

Who’s Winning –Who’s Losing?


Who Is Getting a Raise?Who Is Getting a Raise?

92%

1%

18%26%

36%

64%

0%

20%

40%

60%

80%

100%

120%

Bottom 20% Second 20% Middle 20% Fourth 20% Next 15% Top 5%

< $17,984 $17, 985 – 34,000

$34,001 – 54,453

$54,454– 86,867

$86,868– 154,119

>$154,120


If you earned the same pay increase as the average CEO ...

If you earned the same pay increase as the average CEO ...

Source: State of Working America, 2004-2005

CEO Pay Skyrockets

• you would now earn $145,770

… and you earned $30,000 in 1990,


1976

Wealthiest 1%19%

Next 9%30%

Bottom 90%51%

The Rich Get Richer:

The Rich Get Richer:

1998Bottom 90%

17%

Next 9%33%

Wealthiest 1%38%

Unpublished study Wolfe cited in State of Working America, 2002-2003


• Maximize profits-- lower wages-- eliminate effective regulation-- create vulnerable and desperate workforce

• Destroy unions-- limit ability to organize-- politically silence the last organized

voice for workers

Corporate Conservative Goals:


• Scapegoating

• Divided communities

• Individualism

• Escapism

Wheel of misfortune

From United for a Fair Economy. www.faireconomy.org

Rule changes favor the

wealthiest

Greater economic inequality

Power shifts to

corporations &

investors

Decline in political

participation

•Big $ in politics

• Longer work hours

• Rising debt


OrganizingBargaining/Representation

Legislative, Political &Community Action

The Union TriangleWhat can be done.


• Cooperation• Healthy and

diverse communities• Opportunity

Wheel of Shared Fortune

From United for a Fair Economy. www.faireconomy.org

Broadly shared

prosperity

Rule changes

that benefit

everyone

• Real elections• Strong unions• More time

Political participati

on rises

Power shifts to ordinary people

labor education service university of mn the conservative economic assault on workers

Documents

department of labor

cheap labor

census bureau slide

politics matter slide

social security slide

president bush slide

taxes government

public services