Wednesday, February 19, 2025

[NJFAC] No tax on tips will harm more workers than it helps--EPI

No tax on tips will harm more workers than it helps
Proposals in Congress and now 20 states could encourage harmful employer practices and lead to tip requests in virtually every consumer transactionWhen President Trump proposed exempting tipped income from taxation during his 2024 presidential campaign, many viewed it as a politically expedient gimmick to win support among tipped service workers. Unfortunately, then-Vice President Harris soon followed suit, and since the election, a federal "no tax on tips" bill has been reintroduced and lawmakers in at least 20 states have proposed similar bills (see map below).

Now that lawmakers in a multitude of states have supported the idea, it's worth unpacking just how incredibly foolish and dangerous these proposals are. In summary, exempting tips from taxes would:

  1. help very few workers and undermine pay increases for many more;
  2. expand the use of tipped work—a system rife with discrimination and worker abuse— potentially leading to consumers being asked to tip on virtually every purchase; and
  3. deplete state and federal budgets and create new avenues of tax avoidance, especially for high earners.....
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June Zaccone
National Jobs for All Network
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Monday, January 27, 2025

[NJFAC] 73% of employees surveyed struggled to afford anything beyond basic living expenses

New research reveals financial stress is hurting the morale, motivation, and productivity of U.S. workers.

A recent survey by Resume Now reveals that financial stress has reached a breaking point for American workers, with 73% of employees struggling to afford anything beyond their basic living expenses. 

The 2025 Wage Reality Report reveals a growing dissatisfaction with salaries, rising living costs, and the toll these challenges are taking on workplace morale. Based on responses from 1,065 U.S. workers surveyed in December 2024, the report sheds light on the widening gap between wages and the cost of modern living.

So, what are the real impacts of this financial stress on workers' lives, and how are they coping with the challenges of rising costs and stagnant wages?

Key Findings

  • 12% often cannot afford basic living expenses, and 24% struggle to cover essentials.
  • Only 6% are able to save for the future.
  • One-third of workers say their salary has not kept up with inflation.
  • 55% think their salary is lower than it should be.
  • 29% have moved to lower-cost areas or housing to navigate financial strain.
  • 3 in 10 have taken on debt to cover living expenses.
  • Only 4% of workers feel truly valued in their role.

 link from nakedcapitalism.com

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June Zaccone
National Jobs for All Network
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Monday, January 20, 2025

[NJFAC] Dean Baker on the importance of low unemployment

Full Employment: One Last Time for the Road
"....There is no better way to give large benefits to tens of millions of people, especially groups facing discrimination in the labor market like Black workers and people with criminal records.....

In the Biden years, many pundits argued that unemployment doesn't matter much because a one percentage point drop in the unemployment rate just means another 1.6 million people have jobs. That doesn't seem like a very big deal in a workforce of 160 million.

But this reasoning is badly confused. Full employment matters not just because it reduces the number of people who are unable to find jobs, but also because it improves the bargaining position of tens of millions of workers. The point is simple, but huge.

In a normal month 5-6 million people lose or leave their job, with the vast majority looking for new ones. That translates into 60-70 million people over the course of the year coming into direct contact with the state of the labor market. For these people it matters enormously if there is a strong labor market near full employment or a sagging labor market where people struggle to find jobs.

In a strong labor market these workers will be able to move to better jobs that pay more and offer better working conditions. It's not an accident that we saw a record level of workplace satisfaction in 2023 after we had record rates of job switches the prior year.

The ability to leave for a better job also leaves workers better positioned to get pay raises at their current job, if they decide not to leave. This is especially true for workers at the lower end of the wage distribution. They have far more bargaining power than in a weak labor market.....

The Black-White wage gap was also reduced during this period. The 13 percent gap in 2023  is the lowest level on record....."

ps In the article, Baker calls it "low" unemployment, a far better description than full employment, at a time when the lows of 3.4 to 4.0% unemployment mean that in December 2024, for example, when the official rate was 4.1%, 6.9 million people were unemployed and another 9.9 million were involuntarily part-time or wanting a job but not looking for a variety of reasons, including discouragement, or lack of childcare or transportation. And these numbers do not indicate the economic distress of the wider circle which includes their families. jz
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June Zaccone
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Saturday, January 11, 2025

[NJFAC] Working Without Health Insurance

Chronic Condition: Working Without Health Insurance

Jan 10, 2025 By Emma Curchin, John Schmitt, CEPR

...."...even after the full implementation of the ACA, more than 27 million US residents still remain without health insurance. As we document here, almost 16 million of the uninsured are workers in full-time jobs, part-time jobs, or unemployed and actively seeking work. Over 10 million of these uninsured workers hold year-round, full-time jobs.

Workers between the ages of 18 and 64 have long been less likely than the average US resident to have health insurance (see Figure 1). Many workers fall through the holes in the patchwork of health insurance coverage, which includes employer-provided plans, individually purchased coverage through state-level health exchanges, and Medicaid (which is especially important for low-income workers). The vast majority of workers are ineligible for key government health insurance programs that provide higher rates of coverage for other populations. Workers under the age of 65, for example, are not eligible for the Medicare program, which provides nearly universal coverage for the US population 65 and older. Workers are also generally too old to qualify for the Children's Health Insurance Program (CHIP), which, together with Medicaid, produces uninsured rates for children that are about half those of adult workers. Finally, a sizable share of the workforce lives in households with incomes that push them above the thresholds where they would qualify for Medicaid and other forms of need-based coverage.....

As the data show, some groups of workers are much more likely than others to be uninsured. Workers who experience any spell of unemployment during the course of a year are the most likely to be without insurance (18.7 percent), followed by part-time or part-year workers (14.4 percent). But even a large share of full-time, full-year workers (10.5 percent) go without any health insurance coverage from any source during the course of the year.....

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June Zaccone
National Jobs for All Network
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Friday, January 3, 2025

[NJFAC] "salting" the workplace

"What Is Salting, the Organizing Tactic Spicing Up the Labor Movement?" [Kim Kelly, Teen Vogue]. "The resurgence of the American labor movement is being led in no small part by a cohort of young, diverse, fired-up workers around the country. Union density remains embarrassingly low overall, but last month the National Labor Relations Board, or NLRB, released some genuinely inspiring numbers that suggest the perceived upswing in union activity is more than just a vibe. During the 2024 fiscal year, which ended in September, the number of union petitions filed jumped 27% compared with 2023 — and was more than double what the agency received in 2021. Why does this matter? Basically, filing these petitions is a concrete sign that more people are trying to unionize their workplaces… This new generation of organizers is embracing all sorts of strategies, including one of the oldest tactics in the pro-union handbook: salting. Salting is an organizing tactic in which a person gets a job at a specific workplace with the goal of unionizing their coworkers. This kind of shop-floor organizing has a long history within the labor movement, and was once so common it was thoroughly unremarkable; if you were a young worker with socialist or progressive ideas in, say, the early 1900s, it was the most normal thing in the world to start talking to your coworkers about unionizing as soon as you'd learned their names." • It's great that Teen Vogue has a labor beat, but why only Teen Vogue? quote from nakedcapitalism.com

June Zaccone
National Jobs for All Network
http://www.njfac.org

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Tuesday, December 31, 2024

[NJFAC] H-1B visas: It's wage theft, pure and simple, Neuberger


It's wage theft, pure and simple Thomas Neuburger Dec 31






 

A bar chart from Revelio Labs that shows software engineers represent 20% of layoffs in 2023.
For those who bought the "Learn to code" lie (source)

"We live among predators, lions and tigers and bears, each determined to eat what they can of us before another takes a bite first."
—Yours truly, here

This is something everyone who's worked in high tech has known for decades. As I put it a few days ago: "H-1B is a wage-theft scam, because the rich aren't rich enough yet."

Now for some detail. First, from reporter Lee Fang:



Next this, about Amazon and its H-1B visa applications for warehouse jobs:



Image

And this, from right-wing commenter Ashley St. Clair. (She could lose her seat at the table if she keeps on like this.)



Finally, consider reading this data-rich thread regarding the "body shops" involved in H-1B worker trafficking:



Within which we find such goodies as thisten times the statutory limit of approvals per year. Your (well, actually their) government breaks the law for them voluntarily.



And this — almost all of these wages are well below market:



'Learn to Code'

It's very simple. High tech companies like Google and Apple (and, really, all of them) bring in foreign H-1B workers to 1) create indentured employees — people who can only live in the U.S. by staying in the good graces of their employer — and 2) keep Americans from earning too much. Because money.Share

Americans in high tech have been suffering through layoffs since 2022, massive ones, with no end in sight, and H-1B visas exist to fill the gap. Take that, well-paid American worker. "Learn to code" indeed.

We live among predators...

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June Zaccone
National Jobs for All Network
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Monday, December 23, 2024

[NJFAC] on the Luddites and their current relevance: a book review

The Attenuated Politics of Popular Luddism by

Brian Merchant, Blood in the Machine: The Origins of the Rebellion against Big Tech (New York: Little, Brown and Company, 2023), 496 pages, $30, hardcover.

As the subtitle, The Origins of the Rebellion against Big Tech, indicates, Merchant seeks to draw parallels between Luddism, which arose in response to the dislocations of England's Industrial Revolution, and the burgeoning resistance to Silicon Valley digital capitalism. The algorithm-orchestrated gig economy, cloud computing, and the artificial intelligence climacteric have inaugurated a second machine age that threatens a degradation of work at least as acute and pervasive as the one that inspired the Luddites to take up their oversized hammers. In the months since Blood in the Machine's publication, the tech backlash has only gathered momentum as concern with the major AI companies' cavalier attitude toward safety and intellectual property—and public apprehension of an impending employment apocalypse—fuels anti-tech sentiment. Consequently, the book is even more topical now than when it initially appeared. Given Merchant's exquisite timeliness and exceptional moral clarity,....

Merchant tells the story of Luddism with fidelity and panache. The Luddites were a loosely affiliated network of textile workers in the English north and Midlands, the cradle of the Industrial Revolution, in the 1810s. Frame knitters, stockingers, and other craftspeople watched incredulously as manufacturers introduced machinery that enabled their own labor to be performed by unskilled workers—frequently children—at a fraction of the cost. Even more alarming, these devices were installed in a new architectural edifice, the factory, the inmates of which were subject to unprecedented labor intensity and discipline. Accompanying the Industrial Revolution, Merchant underscores, was an equally important cultural revolution: proudly independent artisans, many of whom had carried on their trade alongside their families at home, now had to report to what William Blake unforgettably called the "dark satanic mills," where operatives were subordinated to the remorseless rhythm of automated production and the petty tyranny of overseers. Skilled craftworkers faced a Solomonic decision: starvation or proletarianization.

Refusing this baleful choice, many opted for resistance instead. Nevertheless, the Luddites were not crazed technophobes—indeed, many were themselves amateur inventors or mechanical enthusiasts. They did not turn to pulverizing machines (a bargaining tactic that had been utilized opportunistically for centuries) until they had exhausted all other avenues for redress. As Merchant documents, immiserated craftworkers pressed for the enforcement of regulations governing their trades that were already on the books, petitioned parliament to enact basic labor protection laws, and proposed alternatives that would enable manufacturers to make a profit without reducing their employees to penury. For these efforts, they were ignored and mocked by turns. Ironically, the machine wrecking for which Luddism became notorious was "the bargaining tool of last resort."2 Given the intransigence of the governing and employing classes, Merchant insists, the Luddites' recourse to this tactic "was, if anything, a logical response."3

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June Zaccone
National Jobs for All Network
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