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“The GOP Is Trying To Repeal The 20th Century”: The Right’s Crusade Against Overtime Pay, Why They Despise Worker Rights

Silly me: President Obama’s executive order to expand opportunities for overtime pay Thursday seemed like a win-win. Currently, if you make more than $23,000, you can’t necessarily receive overtime; the president’s order would raise that cap, and also make it harder for employers to classify people with almost no supervisory duties as “supervisors” and thus exempt.

Where’s the downside? Newly qualified workers currently being forced to work overtime without pay will now get higher wages. Or, if their employer doesn’t want to spring for the overtime pay (traditionally time and a half), they will have to expand their workforce to get the work done. Higher wages and/or more jobs: Sounds good, right?

Not to Republicans, of course. The backlash to the president’s overtime-pay expansion just makes clear what we’ve known for a long time: They oppose every attempt by government to reward hard work and protect the rights of workers – unless it applies to the very wealthy.

Speaker John Boehner sounded unusually befuddled opposing Obama’s move. “If you don’t have a job, you don’t qualify for overtime. So what do you get out of it? You get nothing,” he told the Washington Post. “The president’s policies are making it difficult for employers to expand employment. And until the president’s policies get out of the way, employers are going to continue to sit on their hands.”

The president’s policies are in fact making it harder for employers to exploit their workers. That’s all. As Jared Bernstein told the New York Times. “I think a potential side effect is that you may see more hiring in order to avoid overtime costs, which would be an awfully good thing right about now.”

Or you’ll see higher wages, which would also be an awfully good thing. One of the major causes of rising income inequality is that back in the 1970s, rising productivity suddenly became detached from rising wages. For decades — since the labor-rights reforms and social welfare advances of the ’30s and ’40s — the two lines climbed in tandem, with higher productivity translating into higher paychecks. The two came apart, in what’s become known as “the great divergence,” at the same time as income inequality began to climb. There are many reasons for the productivity-wage split, including a stagnant minimum wage, declining union membership, and weaker labor rights overall – including less compensated overtime.

Republicans no longer accept that it was government intervention in the economy, first in the Progressive era and then, more forcefully, after the Great Depression, that created the greatest economic boom and the biggest middle class in history. The 40-hour work week. The weekend. Vacations. Child labor laws. The minimum wage. Social Security. Health and safety protection. All of these represented government intervention on the side of working people, to balance the playing field with exploitive employers, and to carve out a realm of family and personal life that could be protected from ceaseless labor. Progressive public policy essentially created childhood, as a time when kids who weren’t wealthy might be educated and protected from labor abuse.

These became bipartisan values, with some debating around the margins, through Richard Nixon’s administration. But then a pro-business backlash put all of those gains back on the table. Republicans are now trying to repeal the 20th century.

“The federal government, in particular, shouldn’t be involved in labor markets in any way, shape or form,” says Jeffrey Miron, economic studies director at the Cato Institute. Cato is a libertarian think tank, but Miron’s once-radical point of view is now the GOP mainstream.

We’ve seen Republicans, like friend-of-the-poor Paul Ryan, fiercely oppose even modest increases in the minimum wage – even though earlier hikes always had a decent amount of bipartisan support. In fact, more Republicans today are openly insisting there shouldn’t even be a minimum wage, from formerly sensible Tennessee Sen. Lamar Alexander to Texas Gov. Rick Perry and his home state ally Rep. Joe Barton. GOP Senate candidates in North Carolina and Iowa have made abolishing the minimum wage a pillar of their campaigns.

We already know Republicans hate unions, whether public or private sector. One of the hottest CPAC sessions last week focused on “the Wisconsin model” of public sector union busting, but we also saw how hard GOP elected officials in Tennessee fought a union drive among Volkswagen workers there.

Some on the right have even clamored to bring back child labor. Newt Gingrich suggested poor kids should work as janitors to earn their school lunches, in order to fight the “culture” of poverty. (Like Paul Ryan, he doesn’t seem to see that food is the best answer for hunger.) Utah’s Tea Party Sen. Mike Lee has declared federal child labor laws “unconstitutional,” while up in Maine, wingnut Gov. Paul LePage would like to lower the legal working age from 16 to 12.

I’ve never understood why Republicans believe rich people need more money to ensure they’ll work harder, but the non-rich don’t deserve such incentives. From skyrocketing CEO pay to lower tax rates, the GOP defends putting more money in the hands of rich folks as a good thing. Giving more money to working people, by contrast, only encourages slackers and moochers. The president can’t wait for Republicans to join the 21st century while they’re busy repealing the 20th. He’s right to do whatever he can to boost workers’ wages on his own.

 

By: Joan Walsh, Editor at Large, Salon, March 14, 2014

March 16, 2014 Posted by | Economic Inequality, Wages | , , , , , , , , | 1 Comment

“It’s A Trap”: The GOP’s New Outreach To Women Is A Slick Attempt To Give Employers More Power

House Republicans are launching their first concerted effort to win back female voters on Tuesday with the Working Families Flexibility Act of 2013, a bill that’s being packaged as a lifeline to working moms across the country.

Unfortunately, the legislation is a particularly cruel hoax—a slick attempt to give employers more power, and hourly workers much less.

At first blush, the idea sounds good. The bill would allow hourly workers to convert overtime pay into time off: in other words, instead of getting paid for extra hours, they could stockpile additional vacation time. The pitch here is that working parents could have more flexibility in their schedule and an enhanced ability to balance work and family. “This week, we’ll pass [Representative] Martha Roby’s bill to help working moms and dads better balance their lives between work and their responsibilities as parents,” House Speaker John Boehner said Tuesday.

The GOP is specifically invested in convincing women this bill is for them. The GOP spent $20,000 last week on a digital ad campaign focusing on so-called “mommy blogs,” like Ikeafans.com and MarthaStewart.com, and geo-targeting Democrats in swing districts. “Will Rep. Collin Peterson stand up for working moms?” one iteration of the ad asked.

A fawning National Review profile of Roby, the bill’s sponsor, explains how she wasn’t sure she could handle a run for Congress in 2009 because of concerns about taking care of her children while running for a House seat and potentially becoming a member of Congress—and how those concerns have now inspired her to push this important legislation.

But it’s not too hard to see how pernicious this legislation truly is. “Flexibility” is a word that should make hourly workers check for their wallets—employers hold most of the power in the relationship with hourly workers, which is all the more true if they are not unionized. So “flexibility” to decide if you want to get paid for overtime work, instead of getting fewer hours later on, can quickly become a way for employers to withhold payment for overtime work while also cutting your hours down the road.

Over 160 labor unions and women’s groups sent a letter to members of Congress on Monday, protesting that the Working Families Flexibility Act is “a smoke-and-mirrors bill that offers a pay cut for workers without any guaranteed flexibility or time off to care for their families or themselves.”

Republicans say this isn’t true, and that there are safeguards in the bill that would prevent employers from muscling their employees into surrendering overtime pay. “It is illegal for them to do that. There are enforcement mechanisms in the bill,” Eric Cantor said in February.

But this is where they’re being really tricky—the bill does give workers the right to sue over such intimidation, but denies them the right to use much quicker, and cheaper, administrative remedies through the Department of Labor. It also gives the Department of Labor no additional funds to investigate nor enforce provisions of the act.

So if hourly workers get intimidated into giving up overtime pay in exchange for working even fewer hours down the road, they’re more than welcome to hire a lawyer and sue—a rather improbable outcome given how expensive that might be. Otherwise, tough luck.

There also isn’t quite as much flexibility in the act as it seems. As the National Partnership for Women and Families points out, while the bill does allow hourly workers to turn overtime pay into as much as 160 hours of comp time, it gives them no right to decide when they can use that time—even if there’s a family emergency. That’s still entirely up to employers.

Further hampering workers’ flexibility is that once they bank more than eighty hours in comp time, employers can unilaterally decide to cash out any additional hours. Also, workers who decide later that they need to cash out the comp time they’ve earned can do so—but employers have thirty days to cut the check, which could certainly be a problem for hourly workers on a tight budget.

Moreover, this isn’t even a new idea. Republicans proposed this same bill ten years ago, prompting the late Molly Ivins to remark “the slick marketing and smoke on this one are a wonder to behold.”

The legislation, simply, is a straightforward boon to big employers. “It pretends to offer time off but actually asks [employees] to work overtime hours without being paid,” Judy Lichtman of the NPWF told reporters on a conference call Monday. She added that it’s simply a “no-cost, no-interest loan to the employer.”

House Democrats will be nearly, if not entirely, unified in opposition. “The Working Families Flexibility Act sounds good, but it is a sham and we are going to call it out for what it is. It would cause more harm than good and we are going to reject it,” Representative Rose DeLauro said yesterday during the same conference call.

Due to the Republican majority in the House, the bill is likely to pass on Tuesday, but Senate passage seems dubious at best, and the White House has already issued a veto threat.

Of course, if Republicans are indeed interested in providing extra flexibility to help hourly workers balance family concerns with their jobs, they could pass paid family leave legislation. Only 11 percent of all private industry workers have access to paid family leave, and the United States is the only high-income country in the world not to mandate it. Unlike the Working Families Flexibility Act, paid family leave is generally something the employee has the unilateral ability to exercise.

Unfortunately, that’s something Congressional Republicans are deeply opposed to enacting. They blocked a proposal from President Obama in 2011 that would have created a $1.5 billion fund to push paid family and medical leave programs at the state level, and several similar efforts to enact such laws at the federal level.

In 1993, when Congress considered and ultimately passed the Family and Medical Leave Act—which mandates only twelve weeks of unpaid family time off—Republicans were apoplectic. One House member from North Carolina called it “nothing short of Europeanization—a polite term for socialism.” A young John Boehner, years from becoming House Speaker, said the legislation would “be the demise of some [businesses].

“And as that occurs,” he said, “the light of freedom will grow dimmer.”

Additional reporting by Nation DC intern Anna Simonton.

UPDATE: The final vote on the Working Families Flexibility Act of 2013 has been pushed back to Wednesday.

Also, it’s worth knocking down a particular Republican talking point on the bill, as expressed by Eric Cantor’s communications director to me over Twitter, among many other places. They argue that, since federal workers already enjoy the ability to trade overtime pay for extra time off, workers in the private sector should enjoy the same rights.

The problem with this argument is that the federal government is not a profit-driven employer likely to muscle workers into giving up overtime pay in return for reduced hours. If that did happen, federal workers are unionized and enjoy many employment protections that Walmart workers, for example, do not.

It’s important to note here that, during the mark-up for this bill last month, Representative Timothy Bishop, a Democrat from New York, offered an amendment that would make the Working Families Flexibility Act apply “only if the employer enters into an employment contract with the employee that provides employment protections substantially similar to those provided to Federal, State or local employees under civil services laws.”

Every Republican voted against it, and the measure was defeated.*

*A prior version of this story said four Democrats also voted against the Bishop amendment, but they were just not present for the vote.

 

By: George Zornick, The Nation, May 7, 2013

May 9, 2013 Posted by | Republicans, Women | , , , , , , , | 1 Comment

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