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Labor Education Service University of MN
The Conservative Economic Assault
on Workers
The Conservative Economic Assault
on Workers
Labor Education Service University of MN
What do we mean by the American Dream?
What’s been happening to this dream?
Labor Education Service University of MN
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.
Labor Education Service University of MN
Unions and Politics Matter
Unions and Politics Matter
Labor Education Service University of MN
+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
Labor Education Service University of MN
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
Labor Education Service University of MN
Union Density by State - 1983
10% to 20%
21% & over
0% to 9%Source: U.S. Department of Labor
Labor Education Service University of MN
Union Density by State - 2003
0% to 9% 10% to 20% 21% & overSource: U.S. Department of Labor
Labor Education Service University of MN
Since 2001…
Poverty
12.7%
45.8 million
Uninsured workers
Real wages Stagnant
Data from U.S. Census Bureau
Labor Education Service University of MN
So …
If you were a corporation out to increase profit and lower worker wages …
What would you do?Who would you target?
Labor Education Service University of MN
TheConservative
Corporate Strategy
TheConservative
Corporate Strategy
Labor Education Service University of MN
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.
Labor Education Service University of MN
Then …
Privatize public
services to the lowest
bidder.
Outsource good
jobs to find cheap
labor.
Profit by cutting
worker pensions
and wages.
Labor Education Service University of MN
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...."
Labor Education Service University of MN
“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
Labor Education Service University of MN
This is really what drowning government in a bathtub looks like.
Labor Education Service University of MN
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)
Labor Education Service University of MN
Here’s one IRS form you’ll probably never need!
Labor Education Service University of MN
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%
Labor Education Service University of MN
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%
Labor Education Service University of MN
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
Labor Education Service University of MN
Deregulate worker and environmental protections.
•Industries–Trucking, telephones, airlines
–Energy (e.g. California)
•Worker protections–OSHA–Environmental protections
Labor Education Service University of MN
Bush announces his “free trade” economic programBush announces his “free trade” economic program
Labor Education Service University of MN
NAFTA’s Devastating EffectsNAFTA’s Devastating Effects
• 750,000 jobs (mostly in manufacturing) lost in the United States
• Mexican manufacturing wages drop 23%
Labor Education Service University of MN
“Ideally, you’d have every plant you own on a barge.”
-- John F. WelchFormer Chairman and CEOGeneral Electric
Source: “Moneyline,” CNN, 1998.
Labor Education Service University of MN
• 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
Labor Education Service University of MN
“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
Labor Education Service University of MN
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
Labor Education Service University of MN
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.
Labor Education Service University of MN
… 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.
Labor Education Service University of MN
• 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
Labor Education Service University of MN
Who’s Winning –Who’s Losing?
Who’s Winning –Who’s Losing?
Labor Education Service University of MN
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
Labor Education Service University of MN
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,
Labor Education Service University of MN
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
Labor Education Service University of MN
• 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:
Labor Education Service University of MN
• 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
Labor Education Service University of MN
OrganizingBargaining/Representation
Legislative, Political &Community Action
The Union TriangleWhat can be done.
Labor Education Service University of MN
• 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