1. Labor and Trump Administration
Dr. Mary Gatta
Associate Professor, Sociology
CUNY-Guttman

2. Current labor market
Trump inherited a strong labor market (January Jobs Report, 2017)
Job growth (added 227,000 jobs in January and has averaged 183,000 over the past three months)
The retail, construction and financial industries accounted for much of the hiring last month
Low unemployment (4.8%)
Average hourly earnings are up 2.5 percent over the year (less than last month)
Growth in Retail, Food/Hospitality, Health Care, and Construction

3. Concerns… Minimum Wage
Federal minimum wage: $7.25/hour legislation to raise it to $10.10
Lost 9.6% of its purchasing power
Workers are older than you think!
88% of all affected workers are at least 20 years old;
Average age: 35
35.5% are at least 40 years old;
56% are women
44% have some college experience
Subminimum wage: $2.13/hour for tipped workers
Data: Economic Policy Institute: percent-workers-benefit/

4. Concerns…Social Security
Solvent until 2034– then can pay out 75% of benefits if we do nothing
Critical for retirement security
Insurance program workers pay into with their paychecks
Trump campaigned NOT to cut social security but---
Concerns about benefit cuts
Raising the retirement age-- reproduces inequality
Privatization-- increase administrative costs; and increase financial firms fees

5. Concerns…Wage Theft
Denial of wages or benefits that are rightfully owed to an employee
New York, Chicago, and Los Angeles (Bernardt, et al 2008)
26 percent of low-wage workers had been paid less than the minimum wage, with 60 percent underpaid by more than $1 per hour.
Over 75% of workers who worked over 40 hours did not receive any overtime pay.
New Jersey Shore Restaurant Workers (Gatta and Unrath, 2012)
70% of workers reported they did not receive overtime pay.
40% reported that they had worked off the clock
Under Secretary Perez-
Since 2009, USDOL recovered $1.6 billion in workers’ back wages.
In 2015, it recovered an average of $700,000 every day, which the Wage and Hour Division explains is “enough for more than 3,600 working families to buy a week’s groceries

6. Concerns…Paid Sick Days
Workers must work sick or get fired
Not all workers have equal access through their jobs (Gould, 2015)
87% of the top 10% of earners
30% of the bottom 25% of earners
NJ Shore restaurant workers (Gatta and Unrath, 2012)
92% did not have paid sick days
80% went to restaurant work sick
50% coughed/sneezed on food
Public health issue (CDC estimates 80% norovirus transmission tied to food workers)

7. Concerns…Paid Family Leave
Family Medical Leave Act (FMLA)
12 weeks of job-protected UNPAID leave
Large company (50 or more employees)
Work at company for a year
Countries WITHOUT Paid Leave
Swaziland, Lesotho, Papua New Guinea AND United States
FAMILY ACT (Sen. Gillibrand and Rep. DeLauro)– bill to establish a paid leave system
New Jersey does have PAID Leave (NJ Family Leave Insurance)

8. Andrew Puzder– Labor Secretary nominee CEO of CKE restaurants (Hardees, Carl Jrs)

9. Under his watch--
CKE restaurants have been investigated by USDOL for wage violations/theft and ordered to pay back pay
about 60 percent of all Labor Department investigations of Carl's Jr. restaurants found violations of the Fair Labor Standards Act
CKE Restaurants has established a record of multiple lawsuits:
Discrimination
Not paying overtime,
accused of firing workers for protesting against low wages
CKE restaurants have repeatedly objectified women
CKE restaurants looking to automate work

10. On Labor Issues… Against raising the minimum wage
Against expanding the overtime rule for managers
Against paid sick days (79% of his workers report going to work sick, ROC, 2017)
Against NLRB “joint-employer” designation for franchisees
which would hold parent company accountable for labor violations in franchisees stores

11. What can we do?
Labor Dept.– necessary for working families economic security and safe working conditions
Family leave/fair wages/equal pay--- “family values”
Connections between health and work (occupational health and safety; paid sick days)
Voice your concerns about Puzder
#AntiLaborSecretary -- get informed!
Reach out to your representatives about Puzder
Learn about workers at CKE restaurants– ROC report (2017): Puzder’s Labor Problems
Support local initiatives
#sanctuaryrestaurants
Local Paid Sick Days and minimum wage legislation
Equal Pay in NJ (Senator Beck—voted against)-- Action Table on Town Equal Pay Resolution