Who Has the Power?

Fighting for Economic Justice

afscme.org/academy

Workshop Objectives

Know what is happening in today’s economy.

Understand how the corporate agenda impacts public budgets and public services.

Learn what we can do to fight for an economy that works for us.

Brendel, Free Software Foundation

afscme.org/academy

Why is it so hard for so many workers

to make a decent living in

the richest country in history?

• Are the most productive in the world

• Work longer hours than in any other developed country

• Are struggling to make ends meet

Workers in America

Median Working-Age Household Income (2006 $)

$52,000

$54,000

$56,000

$58,000

2000 2001 2002 2003 2004 2005 2006

Wages are Declining

Income: Center on Budget and Policy Priorities, Census data.

Benefits are Declining

0%

25%

50%

75%

100%

1980 1985 1993 2004

Medical insurance Defined benefit pension

38%38%

64%64%

3%3% 12%12%23%23%

353%353%

Wealthiest tenth of a percent average $1.3 million a year

116%116%97%97% 98%98% 103%103%

85%85%

Top 0.1%

Top 0.01%

Off the Off the charts! charts!

513% 513% income income

riserise

$5.9 $5.9 million million average average incomeincome

Household Income

1947-'73 1973-'05

Growing Together, Growing Apart

Source: Economic Policy Institute

Per

cen

t In

crea

se

Poorest20%

Second20%

Middle20%

Fourth20%

Richest20%

0

50

100

150

200

250

300

350

0.5

1.0

1.5

2.0

1947

1950

1960

1970

1980

1990

2000

2004

Source: Economic Policy Institute.

Productivity Wages

Leaving the Rest of Us Behind

40%

20%

Unionization

Growing Gap Between Growing Gap Between Workers’ Wages and Executive PayWorkers’ Wages and Executive Pay

For large U.S. corporations For large U.S. corporations surveyed by surveyed by Business WeekBusiness Week magazinemagazine

Source: Institute for Policy Studies and United for a Fair Economy.

In 1980, CEO pay equaled 42 times the average blue collar worker’s pay.

By 2006, CEO pay had grown to 364 times the average blue collar worker’s pay -- by far the widest gap in the world.

Workshop Objectives

Know what is happening in today’s economy.

Understand how the corporate agenda impacts public budgets and public services.

Learn what we can do to fight for an economy

that works for us. afscme.org/academy

The Economy is NOT Like the Weather…

Boxing Workers Into Boxing Workers Into The Corporate The Corporate AgendaAgenda

The Corporate Policy BoxThe Corporate Policy Box

They say: They say: ‘Globalization’‘Globalization’

They say: ‘Labor Market Flexibility’They say: ‘Labor Market Flexibility’What it means: Take Aways, Union Busting, You’re On Your Own

What it means:Privatization,

Deregulation, Tax Cuts for the Wealthy

They say: ‘SmallThey say: ‘SmallGovernment’Government’

What it means:Lower wages and

Job standards

Grover Norquist: DailyKos.com; Tax Cuts at Work: United for a Fair Economy.

January 4, 2007Goldman Sachs wins with Toll Road lease

Dec. 28, 2006

Daniels signs $1 billionwelfare outsourcing deal

December 9, 2006

Welfare plan takes a public beatingMany at 5-hour hearing fear privatization is a done deal

The Problem With ‘Small Government’

We Are Paying More TaxesAnd the Rich Are Paying Less

0%

2%

4%

6%

8%

10%

12%

Lowest20%

2nd 20% Middle20%

4th 20% Next 15% Next 4% Top 1%

Income Property Sales

Federal deduction of state and local taxes taken from income tax share.Source: Citizens for Tax Justice.

State and local taxes as a % of income, by income quintile.

No Right To Organize in the Private Sector

• 60 million Americans would join a union if they could

• Employers deny the right to organize by illegally firing and threatening workers

• NLRB process fails to protect workers’ rights

Yes53%

No42%

Unsure5%

Would You Join A Union?

No Right to Organize forMany Public Sector Workers

Laws provide collective bargaining rights to a majority of public employees

Kansas law covers local governments only if they opt in. Maryland has no state law covering local employees. The largest local jurisdictions have their own laws.

No comprehensive bargaining laws. Some of these states have laws covering various groups of employees. In some states, local jurisdictions have passed laws.

STATES WITH COMPREHENSIVE COLLECTIVE BARGAINING LAWS

Business $1,504

Unions $62

2004 Campaign Contributions in Millions

Source: Center for Responsive Politics.

Political Cash Fuels The Corporate Agenda

AFSCME’s Agenda to Rebuild the Middle Class

Workers' RightsWorkers' RightsRestore Worker’s Freedom to Bargain for a Better Life

Guarantee a Secure

Retirement

Public ServicesPublic ServicesIncrease Investment in Public Services

Health CareHealth CareMake Health Care

Secure andAffordable

PensionsPensions

Knowledge Check1. The average CEO pay is how many times higher than

the average worker:o 125 timeso 255 timeso 364 timeso 420 times

2. The percentage of workers represented by unions in the U.S. is:o Risingo Decliningo About the same as ever

3. True or False: All public sector workers in the U.S. have the right to organize a union and bargain collectively.o Trueo False

Answers

1. The average CEO pay is how many times higher than the average worker:

o Correct answer is 364 times.

2. The percentage of workers represented by unions in the U.S. is:

o Correct answer the declining.

3. All public sector workers in the U.S. have the right to organize a union and bargain collectively.

o Correct answer is false. There are many states in which public sector workers do not have the right to organize and bargain.

Know what is happening in today’s economy.

Understand how the corporate agenda impacts public budgets and public services.

Learn what we can do to fight for an economy that works for us.

afscme.org/academy

Workshop Objectives

Putting the Pieces Together

Bargain Bargain CollectiveCollective

lyly

OrganizeOrganize

EDUCATEEDUCATEElectElectPro-Pro-

Worker Worker CandidateCandidate

ss

Change the Change the RulesRules

Demand Demand Corporate Corporate

AccountabilityAccountability

Hold Elected Hold Elected Officials Officials

AccountableAccountable

Pass the

Employee

Free Choice Act!

Organize

http://www.afscme.org/legislation-politics/efca.cfm

Change the Rules

Fight for Fair Taxes

No more tax cuts for the

wealthy

Sunshine on tax breaks

Scrutiny for contract deals

Demand Corporate Accountability

•Corporate Reform– Shareholder

power– Attacking

excessive CEO pay

– Exposing insider deals

Home Depot rally photo: Reuters.

Elect Pro-Worker Candidates

Learn about

AFSCME PEOPLE.

Additional resources and to take actionwww.afscme.org/issues/15899.cfm

research@afscme.org 202-429-1215

For More Information

afscme.org/academy