In the spring of 2004, amid the thaw of a frigid New York City winter, a brave group of Starbucks baristas began organizing. Like most service-sector employees in the United States, they were faced with the daunting task of trying to live on less-than-livable wages. Inconsistent hours, inadequate or nonexistent health insurance, and less-than-dignified working conditions paled in comparison to their inability to obtain the most basic necessities. Apartment meetings, backroom discussions, and after-hours pep talksāall fueled by a collective angstāculminated in a sense of solidarity. On May 17, 2004, they officially announced their affiliation with the Industrial Workers of the World, an all-encompassing union with an impressive history of labor activity in the U.S. A petition for unionization followed suit. Their demands were simple: guaranteed hours with the option for full-time status, an end to understaffing, a healthier and safer workplace, and increased pay and raises.
Deploying what they refer to as āsolidarity unionism,ā as opposed to ābusiness unionism,ā the preamble to the IWWās constitution echoes an old-school, militant, trade-union tone, boldly (and correctly) proclaiming, āThe working class and the employing class have nothing in common. There can be no peace so long as hunger and want are found among millions of the working people.ā It is not just a much-needed infusion of labor militancy that makes the IWW attractive, it is its grassroots approach to labor organizing, the IWWās model represents accessibility and a sense of em- powerment for disconnected workers who find themselves on virtual islandsāoutside the potentially radical confines of a traditional shop floor.
After decades of a disastrous neoliberal agenda, the Starbucks Union captured a vibe and sparked a movement as 2007 saw the arrival of Brandworkers, āa non-profit organization bringing local food production workers together for good jobs and a sustainable food system.ā Following a similar grassroots blueprint, the NYC- based organization was founded āby retail and food employees who identified a need for an organization dedicated to protecting and advancing their rights,ā and stands on āa simple principle: that working people, themselves, equipped with powerful social change tools, were uniquely positioned to make positive change on the job and in society.ā Their direct-action, āFocus on the Food Chain (FOFC)ā initiative specifically targets āthe rapid proliferation of sweatshops among the food processing factories and distribution warehouses that supply the Cityās (NYC) grocery stores and restaurantsā which āincreasingly relies on the exploitation of recent immigrants of color, mostly from Latin America and China.ā
In an unprecedented effort, FOFC ācreates space for the immigrant workers of NYCās industrial food sector to build unity with each other, gain proficiency in the use of powerful social change tools, and carry out member-led workplace justice campaigns to transform the industry.ā Ultimately, āFocus members and their allies are using organizing, grassroots advocacy, and legal actions to build a food system that provides high-quality local food and good local jobs.ā Groups like the Starbucks Workers Union and Brandworkers created the momentum that in 2010, six years after baristas came together in Manhattan, a band of sandwich makers in Minneapolis, Minnesota appear.
Thus, the next wave of grassroots, low-wage labor activityāthis time stemming from the fast-food industry and, more specifically, the corporate brand of Jimmy Johnās sandwiches took hold. Sporting T-shirts that read, āWages So Low Youāll Freakāāa mockery of JJās corporate slogan, āSubs So Fast Youāll FreakāāJJ workers, also under the direction of the IWW, embarked on the first ever unionization drive for fast-food workers. Emily Przybylski, a bike delivery worker at the restaurant chain, captured the spirit of the moment: āA union in fast food is an idea whose time has come. There are millions of workers in this industry living in poverty with no consistent scheduling, no job security, and no respect. Itās time for change.ā As Labor Day 2010 approached, JJ workers at one Minneapolis store filed for a union election and actions such as leafleting and picketing were coordinated at stores in 32 states, āfrom Clovis, California to Miami, Florida.ā
The embryo created by baristas in NYCāand nurtured over the better part of a decade by the likes of the Brandworkers and Jimmy Johnās workers in Minneapolisācame to a head in 2012. On Thursday, October 4, 2012, the spread of low-wage discontent struck the epicenter of corporate exploitation, as āmore than 70 Los Angeles Wal-Mart workers from nine stores walked off the job.ā These walkouts accompanied over ā20 charges of unfair labor practicesā filed with the National Labor Relations Board. A week later, Wal-Mart workers across 28 stores in 12 states, staged labor protests in the form of strikes and walkouts. The first workersā strike in the companyās 50-year history spread to stores in Los Angeles, San Francisco, Seattle, Chicago, Dallas, Miami, Washington, DC, and Orlando. This movement, much like its predecessors, was largely formed out of grassroots organizing efforts that were over a year in the making. In June 2011, āOUR Walmart,ā a workers advocacy organization supported by and coordinated with store associates from across the country, dispatched ānearly 100 Associates representing thousands of OUR Walmart members from across the United States to the Walmart Home Office in Bentonville, Arkansas, and presented a Declaration of Respect to Walmart executive management.ā The Declaration included a list of requests:
- Listen to us, the Associates
- Have respect for the individual
- Recognize freedom of association and freedom of speech
- Fix the Open Door policy
- Pay a minimum of $13/hour and make full-time jobs available for Associates who want them
- Create dependable, predictable work schedules
- Provide affordable healthcare
- Provide every Associate with a policy manual, ensure equal enforcement of policy and no discrimination,
and give every Associate equal opportunity to succeed and advance in his or her career- Provide wages and benefits that ensure that no Associate has to rely on government assistance
In November 2012, mere weeks after Wal-Mart workers took a stand, fast-food workers from McDonaldās, Wendyās, Burger King, Taco Bell, and KFC staged protests in various locations around New York City, ādemanding $15 an hour in pay and the right to form a union.ā A few months later, in the spring of 2013, fast food strikes gained momentum with numerous walkouts across the country. In April, NYC workersābacked by labor, community and religious groupsāstaged protests at more than five dozen restaurants. Over the course of the next month, similar actions were carried out in Pennsylvania and Chicago. In Chicago, the actions spread from the fast-food industry to retail, with low-wage workers from Macyās, Sears, and Victoriaās Secret also participating. On Friday, May 10, ā400 workers at more than 60 fast-food restaurants in the Detroit metro area walked off the jobā in what may have been āthe largest fast food strike in American history.ā
The Detroit event was significantly effective as it āshut down multiple restaurants entirely, including multiple McDonaldās outlets, a Long John Silverās, a Burger King, two Popeyeās restaurants, and a KFC.ā One McDonaldās worker, Jay Robinson, told reporters that when he started at McDonaldās over two years ago, he was paid $7.40 an hour. Writes Aaron Petkov for Socialistworker.org., āRobinson has gotten raises since thenāand now makes $7.48 an hour.ā In his efforts to care for himself and a 2-year-old daughter, āItās a day-to-day struggle,ā he said. At another McDonaldās restaurant, āmanagement attempted to avert a shutdown by bringing in replacement workers, but those replacement workers (in a moment of incredible solidarity) then promptly joined the strike.ā This wave of low-wage labor militancy continued through the summer.
On Thursday, August 29, workers at numerous fast-food chains participated in coordinated strikes in nearly 60 cities nationwide. Citing poverty wages and the need for more rights in the workplace, āa dozen workers didnāt show up for their shift at a McDonaldās on 8 Mile Road (in Detroit), forcing the closure of the dining room.ā In Raleigh, North Carolina, about 30 workers picketed outside a Little Caesars location. One employee, Julio Wilson, expressed the discontent of his peers, saying the $9-an-hour he was paid was not nearly enough to support himself and his 5-year-old daughter. āI know Iām risking my job, but itās my right to fight for what I deserve,ā Wilson said. āNine dollars an hour is not enough to make ends meet nowadays.ā In Indianapolis, āseveral employees walked off the job from a McDonaldās outlet at 16th and Meridian streets.ā āMost people here have a family to support and most people here barely make enough to make ends meetā,ā employee Dwight Murray said. āWeāre here today because we feel like McDonaldās is a $6 billion entity and itās feasible for them to pay $15 an hour.ā
Propaganda and Union-Busting
Despite the obvious need for livable wages, there is much opposition. Union-busting has become a staple of employee orientations throughout the corporate landscape, with retail giants like Target and Wal-Mart regularly unleashing āaggressive anti-union push (es), and distributing pamphlets and other propaganda to employees.ā Corporations like Target have become notorious for making employees watch dramatized ātraining videosā on the so-called ādangersā of unionization in an attempt to convince workers that higher wages, more benefits, and an overall sense of dignity at the workplace would somehow not be good for them. This concerted effort to maintain a grip on poverty wages has led to the formation of intricate networks of union-busting firms that employ corporate lawyers and āanti-union strategistsā to offer ācontinuing educationā for business owners and executives.
āAt these seminars,ā writes Kim Phillips-Fein, ālawyers and labor relations consultants from the nationās top union-busting law firms come to speak to rapt, intimate groups of executives, advising them on how to beat union election drives, do end runs around the National Labor Relations Board (NLRB), and decertify unions, all the while hawking their own firmsā services.ā Of course, āunion members are expressly banned.ā
Starbucksā corporate response to the organizing efforts made by those fateful NYC workers in 2004 was fierce. āFaced with the first serious effort in decades to unionize one of its stores, Starbucks launched what a former worker called āa scorched-earth campaignā against pro-union employees,ā reported Josh Harkinson. āThe union busting has just been absolutely relentless,ā says Daniel Gross, who was fired in 2006 due to his involvement in the initial organizing efforts at the Manhattan store where he worked.
The Minneapolis Jimmy Johnās workers were met with similar tactics, which included bizarre personal attacks from store owners and management through social media. On March 22, 2011, after lobbying for sick days from the restaurant chain, six workersāall of whom were ākey figuresā in the union organizing effortsāwere fired for ādefaming the brand and disloyalty to the company.ā
Shortly thereafter, another āpro-unionā employee was berated and humiliated on social media by owners and managers, some of whom went as far as posting the employeeās personal telephone number on a public Facebook page and asking people to text the employee to ālet him know how they feel.ā An assistant manager then posted disparaging personal comments about the pro-union employee, making fun of his appearance, and including a picture of the employee.
In addition to these reactive measures deployed by some companies, corporations like Wal-Mart have relied on proactive union-busting programs for years. In 2007, Washington-based Human Rights Watch released an extensive report accusing the retail giant of āroutinely flouting its workersā human rights through a sophisticated strategy of harassing union organizers, discriminating against long-term staff, and indoctrinating employees with misleading propaganda.ā The report includes examples of āworkers forced into unpaid overtime and an alleged strategy of squeezing out long-serving staff who are more costly than low-wage, temporary, younger workers,ā highlights āelaborate tactics to stop staff from coming together to fight for better conditionsā and even describes detailed measures, such as āfocusing security cameras on areas where staff congregate and shifting around loyal workers in āunit packingā tactics to ensure votes for union recognition are defeated.ā The report also found that each store manager, as a part of their training, receives a āmanagerās toolboxā manual which instructs them on āhow to remain free in the event union organizers choose your facility as their next target,ā and that managers are also given access to and instructed to call a āunion hotlineā if they suspect staff are discussing unionizationāan action that would deploy corporate specialists from the companyās headquarters to āaddress the situation.ā
The reasons for such opposition are clear. Corporate profits remain at an all-time high because companies are able to pay poverty wages to their employees and rely on government welfare programs to cover the rest (ironically, while also enjoying historically low corporate tax rates). Additionally, the economic storm that has lingered over the heads of the American working class for the past five years has equaled a virtual paradise for corporate America. Three simple facts highlight this current economic landscape:
- Corporate profit margins just hit another all-time high as companies are making more per dollar of sales than ever before
- Wages as a percent of the economy just hit another all-time low as companies are paying employees less than they ever have as a share of GDP
- Fewer Americans are working than at any time in the past three decades as companies donāt employ as many workers as they used to. As a result, the employment-to- population ratio has collapsed. Maintaining this environment has become a top priority for wealthy investors, corporations, and the politicians who are funded by both.
By gutting the middle class through the destruction of unions (as of 2011, only 11.9 percent of the American workforce was unionizedāa 70-year low) over the past 3 decades, corporations have enjoyed a relatively clear path towards establishing these beneficial conditions of today
āIf these guys are seen to succeed, it could really light a fire because the dissatisfaction is unquestionable,ā labor historian Peter Rachleff explains. āThe corporation knows that and they have a lot of resources [and] plenty of lawyersā to combat these working class movements.
Building Momentum
Despite a well-funded and highly- coordinated opposition, there have been many victories and positive developments along the way. The mere emergence of a new labor resistanceālet alone the fact that it has developed from within the low-wage service-sector and from one of the most disenfranchised demographics of the working classāis very encouraging. While some have questioned the roots of the movement and the extent of the involvement of more traditional, hierarchical unions like the SEIU (Service Employees International), there is no denying the politicization and sense of empowerment that is being internalized by the involved workers. Considering the near-death of working class consciousness in the U.S., this development should not be underestimated. On December 28, 2008, NYC Star- bucks baristas were vindicated by National Labor Relations Board judge Mindy E. Landow, when she ruled that Starbucks had āillegally fired three workers and otherwise violated federal labor laws in seeking to beat back unionization efforts at several of its Manhattan cafesā and ordered Starbucks āto pledge to end what she said was discriminatory treatment toward workers who supported the union at four of its Manhattan shops: 200 Madison Avenue at 36th Street, 145 Second Avenue at 9th Street, 15 Union Square East and 116 East 57th Street.ā
Two years later, the IWW Starbucks Workers Union, following a ādetermined campaign of grassroots actions in Starbucks stores and communities all over the country,ā secured another victory when the companyās corporate office gave in to demands for workers to receive time-and- one-half pay for working on Martin Luther King, Jr. Day. āWeāre deeply moved to have been able in our modest way to increase respect for Dr. Kingās legacy while ensuring that Starbucks employees who work on his holiday are fairly compensated,ā said Anja Witek, a Starbucks barista and SWU member in Minnesota.
In February 2012, after a long battle with Jimmy Johnās, a federal judge ruled the company illegally fired the 6 employees who had campaigned for sick time, and ordered the company to āreinstate the workers with back pay within 14 days.ā In a spirited testimony, Erik Forman, one of the fired employees, remarked: āIt has already been over a year since we were illegally fired for telling the truth. For all the hard work and dedication of the NLRBās civil servants, employers like Jimmy Johnās prefer to break the law and drag cases through the courts for years rather than let workers exercise their right to win fair pay, sick days, and respect through union organization.ā
The latest low-wage workers strike, which took place on December 5, 2013 across ā100 cities through the day,ā signified, according to the Guardian, āa growing clamour for more action on income inequality.ā In front of a Walgreenās in downtown Chicago, nearly 200 protestors chanted, āWe canāt survive on 85.⦠Walgreenās, Walgreenās, you canāt hide. We can see your greedy side.ā In Washington, DC, dozens of workers carryied signs singing loudly, āJingle bells, jingle bells, jingle all the way, itās no fun, to survive, on low low low low pay.ā In New York City, about 100 protesters blew whistles and beat drums as they marched into a McDonaldās chanting, āWe canāt survive on $7.25.ā This collective outrage has empowered workers while placing the problem of income inequality back on the public agenda. Major media sources that had barely uttered a word about such inequality in recent decades have now begun to showcase it. The Catholic Churchās Pope Francis has also made waves during a near-month-long tirade exposing the flaws of capitalism, recently asking, āHow can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market drops 2 points?ā
Calls for a federal minimum wage increase have also gained steam with U.S. Labor Secretary Thomas Perez writing on his blog, āTo reward work, to grow the middle class and strengthen the economy, to give millions of Americans the respect they deserveāitās time to raise the minimum wage.ā Though, of course, the Democratic Partyās proposal to raise the current rate from $7.25 to $9.00āor even $10.10 in other proposed legislationāwould hardly equal a significant change for tens of millions of working poor. The battle cry āFight for $15ā has stuck. Numerous small and localized labor organization like Detroit 15, a group of fast-food and retail workers from the Detroit area fighting āfor fair wages and the right to form a union without interferenceā and Fast Food Forwardāa movement of NYC fast-food workers coming together to ābuild community engagement, hold corporations and their CEOs accountable, and to raise wages so that all Americans can prosperāāhave sprung up amid the movement-at-large, helping to form collaborative efforts with community and religious organizations which possess built-up social capital to be used, and to make the collective decision-making process more accessible to workers.
Socialist candidate Kshama Sawant, who made the āFight for $15ā cause a key part of her election campaign, made history by winning a seat on the Seattle City Council in November.Ā As Seattle Times columnist, Danny Westneat, reported: āYou canāt look at the stagnant pay, declining benefits and third-world levels of income disparity in recent years and conclude this system is working. For Millennials as a group, it has been a disaster. Out of the wreckage, left-wing or socialist economic ideas, such as the ālivable wageā movement in which government would seek to mandate a form of economic security, are flowering.ā
The Future
Considering how far removed we are from the age-old concept of workers āenjoying the fruits of their labor,ā a seemingly minimal expectation of earning a livable wage for full-time work has become a revolutionary notion. But it shouldnāt be. This issue is not just a low-wage problemāitās a working class problem. Itās a middle class problem. Itās a societal problem that destroys living standards for everyone outside of elite circles. And, while it is nowhere near the end-all, be-all of solutions to a toxic system, the premise of āa chain being only as strong as its weakest linkā is certainly an improvement over the neoliberal āgreed is goodā mantra which has dominated monetary and governmental policy over the past 30 years. For low-wage workers, besides allowing the dignity of āearning a living,ā a livable wage infuses more expendable income into the economy while allowing for the opportunity to live without a chronic reliance on public assistance.
āIf you earn your money through wages (unlike many of the 1 percent, who earn through things like investments and a tax system biased in favor of capital gains over income) then a higher wage, minimum or otherwise, would mean that youād spend the additional dollars, creating jobs for other workers,ā explains market analyst Marshall Auerback. āYouād pay down your mortgages and car loans, getting yourself out of debt. Youād pay more taxesāon sales and property, mostly āthereby relieving the fiscal crises of states and localities. More teachers, police and firefighters would keep their jobs. America would get a virtuous cycle toward higher employment and, more importantly, the cycle would be based on a policy which creates higher incomes, not higher debt via credit expansion.ā Furthermore, the establishment of livable wages eases the burden placed on the rest of the working class, which has contributed approximately $7 billion per year to fund public assistance programs that serve as a form of subsidization for Fortune 500s. That figure, from an October 2013 report by UC Berkeleyās Labor Center, includes four major social benefits programs that low-wage workers are forced to use in order to provide basic necessities for themselves and their families. Specifically, the amount is broken down to Medicaid and the Childrenās Health Insurance Program ($3.9 billion), the Earned Income Tax Credit ($1.9 billion), food stamps ($1 billion), and Temporary Aid for Needy Families ($200,000), and doesnāt include other publicly funded programs like child care assistance, WIC, or Section 8 housing, among others.
Unemployed Graduates
For those who see low-wage workers protesting for higher pay and think, āwhy donāt they just get a better jobā or āwhy donāt they go to college, like I did, and earn a degreeāāthink again. In 2012, nearly 300,000 Americans with college degrees were working minimum wage jobs. Furthermore, nearly one-half of all recent college graduates with jobs are underemployed. āOf 41.7 million working college graduates in 2010, about 48 percent of the class of 2010 work jobs that require less than a bachelorās degree, and 38 percent of those polled didnāt even need high school diplomas.ā Even worse, 40 percent of recent college graduates are unemployed. In other words, the idea that earning a degree guarantees a livable wage is exactly thatāan idea that no longer is based in reality.
For those who see low-wage workers striking for a livable wage and think, āwhat do they expect, theyāre working at McDonaldāsā or āthese arenāt careers weāre talking aboutāāthink again. The fact is, since the arrival of globalization, American manufacturing companiesāthe traditional suppliers of a livable wageāhave jumped ship, moving their operations overseas to exploit impoverished workforces that are compelled to labor for next-to-nothing. Since this shift, Americaās working class has become largely reliant on the service industry. In other words, low-wage, service sector jobs are now careersānot by choice, but by necessity.
The 2008 economic crisis and subsequent ārecoveryā only intensified this shift as āmid-wage occupations ($13.84 to $21.13 per hour) constituted 60 percentā of job losses during the 2008 recession, but only 22 percent of the job gains during the recovery. In contrast, ālow-wage occupations ($7.69 to $13.83 per hour) constituted 21 percentā of job losses during the recession, while representing 58 percent of new jobs created during the aftermath. This is a staggering displacement that has seen once-livable employment virtually replaced by now-unlivable wages. As a result, the ācharacteristics of minimum wage workersā are changing, as 75 percent of them are now adults, many of whom have dependents to care for .
Race to the Bottom
The American working class has found itself in a breakneck ārace to the bottomā during the corporatist era. However, recent developments stemming from āsolidarity unionism,ā low-wage worker revolts, and a backlash against neoliberal policies and the extreme income inequality which they have bred have shown that American workers are, in fact, beginning to ārise like lions after slumber.ā If the thundering wave of low-wage labor militancy that has swept the country is any indication, the slumber is officially over. And if the ādramatic actions by and on behalf of workersā in places likes Seattle the past few monthsāincluding a ādefeat of concessions at major grocery chains, Boeing workersā big ānoā vote on concessions, a $15 minimum wage voted in for airport workers, and election of a socialist (a candidate who made a city-wide $15 minimum wage the centerpiece of her campaign) to city councilāārepresent a microcosm of things to come, the proverbial race to the bottomāwhether it has struck bedrock or notāis over. Because of their emergence as a viable sector of embedded labor, courageous, low-wage workers in the service industry now represent the front lines of an ongoing class war. They represent, as Dave Frieboth notes, āa general uprising of young, displaced workers trapped in low-wage jobsā; people who ālooked at the wage disparities and saw that, as a simple matter of fact, the system isnāt working.ā
The further they can be kept down in terms of wages, benefits, and overall standards of living, the more effectively their lowly presence may be used as leverage to drive all working Americansā standards down. Thus, their status affects the status of the working class as a whole. They are not only fighting for themselvesāthey are fighting for all of us. In this sense, āan injury to oneā truly is āan injury to all.ā Their fight is everyoneās fight.
Z
Colin Jenkins is founder, editor, and Social Economics chair at the Hampton Institute.