The Wage Debate: Why Better Wages Are Good News for Everyone—Even Workers

The Wage Debate: Why Better Wages Are Good News for Everyone—Even Workers

The Wage Debate: Why Better Wages Are Good News for Everyone—Even Workers

IAM141.org

We live in a society with the dubious honor of boasting a powerful and activist Managerial Class. This class would love little more than to convince a critical mass of working people to accept smaller paychecks. One way they accomplish this goal is to convince working people that they are going broke because they earn too much money. 

It may sound unlikely, but the argument has been instrumental in preventing a raise in the Federal Minimum Wage for the past 14 years, demonstrating both its ability to mislead and its staying power.

Another variant: workers are regularly warned that should their paychecks grow too large, their jobs could be outsourced to some far-flung corner of the world where employees will be less expensive and less impudent.

In recent years, the push for better wages has gained significant momentum, thanks in no small part to the tireless efforts of unions and worker advocates. Yet, a recurring argument persistently challenges this progress: the notion that higher wages inevitably lead to higher consumer prices, hurting the very people the movement aims to help. This argument may seem convincing, but is it grounded in reality?

The Blame Game: Workers as Scapegoats

Workers are being blamed for higher prices and portrayed as harming society through greed. For instance, wait staff are blamed for higher restaurant prices to make patrons angry at other members of the same working class instead of the owners and their endless quest for profits. 

There’s no universe in which profiteers will ever have enough money. Therefore, price hikes are inevitable and not caused by higher wages; they will always charge as much for their products as possible.

At the same time, workers are threatened by the Managerial Class with a lose-lose proposition: keep asking for more money, and we’ll increase the prices you pay for the things you need. This strategy aims to pit workers against each other and deflects attention from the true culprits behind rising costs.

The belief that higher wages harm consumers has been perpetuated to instill fear and division among working people. Far from being detrimental, better wages have been shown to significantly benefit the working class as a whole, creating a ripple effect of positive impacts across society.

So, whether you’re a worker concerned about the implications of wage increases or a consumer wary of price hikes, there’s good news. Better wages are not the enemy we’ve been led to believe. In fact, they could be the hero we’ve all been waiting for.

The Argument Against Wages

According to economic theory, labor costs, which are a part of the marginal cost of production, play a crucial role in setting consumer prices. Economists such as Richard Layard, Stephen Nickell, and Richard Jackman have argued that higher wages require higher consumer prices. Increased prices, they claim, neutralize the higher wages.

“…when buoyant demand reduces unemployment (at least relative to recent experienced levels), inflationary pressure develops. Firms start bidding against each other for labour, and workers feel more confident in pressing wage claims. If the inflationary pressure is too great, inflation starts spiraling upwards: higher wages lead to higher price rises, leading to still higher wage rises, and so on. This is the wage-price spiral.”

  •  Richard Layard, Stephen Nickell, and Richard Jackman, The unemployment crisis

This isn’t an argument for lower consumer prices, as it pretends to be. This is an argument against the very concept of wages. 

Effectively, the argument asks us to believe that lower wages are in the best interests of working people. If workers get paid less, they will enjoy more money since the prices they pay for goods and services are lower. 

Companies have various methods to absorb the increased labor costs that don’t involve raising prices, such as improving operational efficiencies or accepting slightly lower profit margins. 

The “wage-price spiral” argument is essentially circular reasoning. It assumes that higher wages will automatically lead to higher prices, which will then cause ever higher wages, and so on. It ignores completely the existence of self-correcting mechanisms in an economy, like increased supply or reduced demand, which can break the cycle. It also uses a slippery slope fallacy by implying that any wage increase will inevitably lead to runaway inflation. This also ignores vast empirical evidence that moderate wage increases have not led to uncontrollable inflation.

Wages Now vs. Wages Later

Firstly, the fear of higher prices is often predicated on the wages workers earn now, not the wages they would make after a raise. This is a crucial oversight. A significant wage increase could easily offset a modest increase in the cost of living. For example, a 10% increase in wages coupled with a 2% increase in the cost of goods still leaves the worker 8% better off.

Anti-union managers often employ similar reasoning to dissuade non-union workers from organizing. They raise the specter of unaffordable union dues as a deterrent, attempting to scare workers away from the benefits of collective bargaining. This argument is a variant of the anti-wage increase argument and is equally flawed for similar reasons.

Just as workers might fear higher prices based on their current wages rather than potential higher wages, non-union workers often calculate the cost of union dues against their current, lower wages. They’re not considering what they would be making if they were part of a union, which often includes higher wages, better benefits, job security, and improved working conditions.

By focusing on the immediate cost of union dues without considering the broader financial and social benefits of union membership, workers are making an incomplete assessment that only serves the interests of anti-union managers. It’s a fear tactic designed to maintain the status quo, keeping workers disempowered and wages low.

Like the argument against wage increases, the union dues fear tactic is a form of economic manipulation that seeks to keep workers in a state of uncertainty and apprehension, preventing them from taking steps that would improve their lives both financially and socially.

The truth is that the belief that higher wages harm consumers has been perpetuated to instill fear and division among working people. Far from being detrimental, better wages have been shown to significantly benefit the working class as a whole, creating a ripple effect of positive impacts across society.

In other words, when it comes to wages, sometimes more is more. 

+ Read the full report HERE

 

 

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The Wage Debate: Why Better Wages Are Good News for Everyone—Even Workers

August 29, 2023

We live in a society with the dubious honor of boasting a powerful and activist Managerial Class. This class would love little more than to convince a critical mass of working people to accept smaller paychecks. One way they accomplish this goal is to convince working people that they are going broke because they earn too much money. 

It may sound unlikely, but the argument has been instrumental in preventing a raise in the Federal Minimum Wage for the past 14 years, demonstrating both its ability to mislead and its staying power.

Another variant: workers are regularly warned that should their paychecks grow too large, their jobs could be outsourced to some far-flung corner of the world where employees will be less expensive and less impudent.

In recent years, the push for better wages has gained significant momentum, thanks in no small part to the tireless efforts of unions and worker advocates. Yet, a recurring argument persistently challenges this progress: the notion that higher wages inevitably lead to higher consumer prices, hurting the very people the movement aims to help. This argument may seem convincing, but is it grounded in reality?

The Blame Game: Workers as Scapegoats

Workers are being blamed for higher prices and portrayed as harming society through greed. For instance, wait staff are blamed for higher restaurant prices to make patrons angry at other members of the same working class instead of the owners and their endless quest for profits. 

There’s no universe in which profiteers will ever have enough money. Therefore, price hikes are inevitable and not caused by higher wages; they will always charge as much for their products as possible.

At the same time, workers are threatened by the Managerial Class with a lose-lose proposition: keep asking for more money, and we’ll increase the prices you pay for the things you need. This strategy aims to pit workers against each other and deflects attention from the true culprits behind rising costs.

The belief that higher wages harm consumers has been perpetuated to instill fear and division among working people. Far from being detrimental, better wages have been shown to significantly benefit the working class as a whole, creating a ripple effect of positive impacts across society.

So, whether you’re a worker concerned about the implications of wage increases or a consumer wary of price hikes, there’s good news. Better wages are not the enemy we’ve been led to believe. In fact, they could be the hero we’ve all been waiting for.

The Argument Against Wages

According to economic theory, labor costs, which are a part of the marginal cost of production, play a crucial role in setting consumer prices. Economists such as Richard Layard, Stephen Nickell, and Richard Jackman have argued that higher wages require higher consumer prices. Increased prices, they claim, neutralize the higher wages.

“…when buoyant demand reduces unemployment (at least relative to recent experienced levels), inflationary pressure develops. Firms start bidding against each other for labour, and workers feel more confident in pressing wage claims. If the inflationary pressure is too great, inflation starts spiraling upwards: higher wages lead to higher price rises, leading to still higher wage rises, and so on. This is the wage-price spiral.”

  •  Richard Layard, Stephen Nickell, and Richard Jackman, The unemployment crisis

This isn’t an argument for lower consumer prices, as it pretends to be. This is an argument against the very concept of wages. 

Effectively, the argument asks us to believe that lower wages are in the best interests of working people. If workers get paid less, they will enjoy more money since the prices they pay for goods and services are lower. 

Companies have various methods to absorb the increased labor costs that don’t involve raising prices, such as improving operational efficiencies or accepting slightly lower profit margins. 

The “wage-price spiral” argument is essentially circular reasoning. It assumes that higher wages will automatically lead to higher prices, which will then cause ever higher wages, and so on. It ignores completely the existence of self-correcting mechanisms in an economy, like increased supply or reduced demand, which can break the cycle. It also uses a slippery slope fallacy by implying that any wage increase will inevitably lead to runaway inflation. This also ignores vast empirical evidence that moderate wage increases have not led to uncontrollable inflation.

Wages Now vs. Wages Later

Firstly, the fear of higher prices is often predicated on the wages workers earn now, not the wages they would make after a raise. This is a crucial oversight. A significant wage increase could easily offset a modest increase in the cost of living. For example, a 10% increase in wages coupled with a 2% increase in the cost of goods still leaves the worker 8% better off.

Anti-union managers often employ similar reasoning to dissuade non-union workers from organizing. They raise the specter of unaffordable union dues as a deterrent, attempting to scare workers away from the benefits of collective bargaining. This argument is a variant of the anti-wage increase argument and is equally flawed for similar reasons.

Just as workers might fear higher prices based on their current wages rather than potential higher wages, non-union workers often calculate the cost of union dues against their current, lower wages. They’re not considering what they would be making if they were part of a union, which often includes higher wages, better benefits, job security, and improved working conditions.

By focusing on the immediate cost of union dues without considering the broader financial and social benefits of union membership, workers are making an incomplete assessment that only serves the interests of anti-union managers. It’s a fear tactic designed to maintain the status quo, keeping workers disempowered and wages low.

Like the argument against wage increases, the union dues fear tactic is a form of economic manipulation that seeks to keep workers in a state of uncertainty and apprehension, preventing them from taking steps that would improve their lives both financially and socially.

The truth is that the belief that higher wages harm consumers has been perpetuated to instill fear and division among working people. Far from being detrimental, better wages have been shown to significantly benefit the working class as a whole, creating a ripple effect of positive impacts across society.

In other words, when it comes to wages, sometimes more is more. 

+ Read the full report HERE

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U.S. Department of Transportation Slams American Airlines With Record Fines for Tarmac Delays

U.S. Department of Transportation Slams American Airlines With Record Fines for Tarmac Delays

U.S. Department of Transportation Slams American Airlines With Record Fines for Tarmac Delays

IAM141.org

WASHINGTON – Today, the U.S. Department of Transportation charged American Airlines a $4.1 million fine for breaking the law by repeatedly keeping passengers trapped on the runway for over three hours.

The Department of Transportation requires airlines to return planes to the gate and let passengers off whenever a domestic flight sits on the tarmac for three hours.

The DOT said the worst delays happened at Dallas Fort Worth International Airport, American Airlines’ biggest hub. Additional delays occurred at airports in Houston, San Antonio, and near Washington, D.C. In an August 2020 incident, 105 passengers were stuck on the runway in San Antonio for six grueling hours – enough time to fly from Texas to California. In at least one case, passengers trapped in an American Airlines plane were not offered food or water. In all, the suit alleges 5,821 travelers were affected.

“This is the latest action in our continued drive to enforce the rights of airline passengers,” said U.S. Transportation Secretary Pete Buttigieg. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.”

The DOT investigation found that American Airlines violated passenger rights to deplane during lengthy delays at least 43 times from 2018 to 2021. The lawsuit claims that none of the safety or security conditions that could have justified keeping passengers on idle planes were applied to any of the flights mentioned in the complaint.

The $4.1 million penalty is the biggest fine the Department has ever issued for breaking its rule on long tarmac delays. Out of this amount, $2.05 million will be waived since the airline used that amount to compensate passengers on the delayed flights.

The rule against long delays on the tarmac started during the Obama era. For flights within the U.S., airlines can’t keep passengers on the runway for more than three hours without letting them off the plane. For international flights, the maximum time is four hours.

Earlier this year, the DOT drafted a new rule to make airlines pay for amenities like meals, hotel stays, and rebooking costs when they’re at fault for leaving passengers stranded. Following a two-year effort by the DOT to enhance traveler experience, the top 10 airlines now promise to provide meals and complimentary rebooking on their own airline, with nine also ensuring hotel stays.

Additionally, Transportation Secretary Pete Buttigieg has pressed airlines to ensure families can sit together without extra fees. Before these rules were in place, airlines could charge parents additional to sit with their children. Now, such charges must be disclosed upfront, the first time airfare is presented to the passenger. The notifications also include other charges that airlines had previously buried in the fine print, such as fees for carry-on and checked baggage and cancellation fees. 

American Airlines responded to the sanctions by claiming the delays did not affect that many people. 

“While these delays were the result of exceptional weather events, the flights represent a very small number of the 7.7 million flights during this time period,” said spokeswoman Sarah Jantz in a New York Times article. “We have since apologized to the impacted customers and regret any inconvenience caused.”

 

 

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U.S. Department of Transportation Slams American Airlines With Record Fines for Tarmac Delays

August 29, 2023

WASHINGTON – Today, the U.S. Department of Transportation charged American Airlines a $4.1 million fine for breaking the law by repeatedly keeping passengers trapped on the runway for over three hours.

The Department of Transportation requires airlines to return planes to the gate and let passengers off whenever a domestic flight sits on the tarmac for three hours.

The DOT said the worst delays happened at Dallas Fort Worth International Airport, American Airlines’ biggest hub. Additional delays occurred at airports in Houston, San Antonio, and near Washington, D.C. In an August 2020 incident, 105 passengers were stuck on the runway in San Antonio for six grueling hours – enough time to fly from Texas to California. In at least one case, passengers trapped in an American Airlines plane were not offered food or water. In all, the suit alleges 5,821 travelers were affected.

“This is the latest action in our continued drive to enforce the rights of airline passengers,” said U.S. Transportation Secretary Pete Buttigieg. “Whether the issue is extreme tarmac delays or problems getting refunds, DOT will continue to protect consumers and hold airlines accountable.”

The DOT investigation found that American Airlines violated passenger rights to deplane during lengthy delays at least 43 times from 2018 to 2021. The lawsuit claims that none of the safety or security conditions that could have justified keeping passengers on idle planes were applied to any of the flights mentioned in the complaint.

The $4.1 million penalty is the biggest fine the Department has ever issued for breaking its rule on long tarmac delays. Out of this amount, $2.05 million will be waived since the airline used that amount to compensate passengers on the delayed flights.

The rule against long delays on the tarmac started during the Obama era. For flights within the U.S., airlines can’t keep passengers on the runway for more than three hours without letting them off the plane. For international flights, the maximum time is four hours.

Earlier this year, the DOT drafted a new rule to make airlines pay for amenities like meals, hotel stays, and rebooking costs when they’re at fault for leaving passengers stranded. Following a two-year effort by the DOT to enhance traveler experience, the top 10 airlines now promise to provide meals and complimentary rebooking on their own airline, with nine also ensuring hotel stays.

Additionally, Transportation Secretary Pete Buttigieg has pressed airlines to ensure families can sit together without extra fees. Before these rules were in place, airlines could charge parents additional to sit with their children. Now, such charges must be disclosed upfront, the first time airfare is presented to the passenger. The notifications also include other charges that airlines had previously buried in the fine print, such as fees for carry-on and checked baggage and cancellation fees. 

American Airlines responded to the sanctions by claiming the delays did not affect that many people. 

“While these delays were the result of exceptional weather events, the flights represent a very small number of the 7.7 million flights during this time period,” said spokeswoman Sarah Jantz in a New York Times article. “We have since apologized to the impacted customers and regret any inconvenience caused.”

 

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American Dream Fading as 75% of U.S. Homes Out of Reach for Middle Class

American Dream Fading as 75% of U.S. Homes Out of Reach for Middle Class

American Dream Fading as 75% of U.S. Homes Out of Reach for Middle Class

IAM141.org

The Unaffordable Neighborhood: 75% of Homes Out of Reach for Middle-Income Buyers

A recent report from the National Association of Realtors and Realtor.com paints a dire picture: over 75% of homes on the market are now too expensive for middle-income buyers. According to the report, those earning up to $75,000 per year could afford just 23% of all listed properties in the U.S. This is a steep decline from five years ago, when 50% of listings were within the reach of middle-income earners.

“Even with the current level of listings, the housing affordability and shortage issues wouldn’t be so severe if there were enough homes for all price ranges,” says Nadia Evangelou, a senior economist at NAR.

Zillow’s Response: The 1% Down Payment Program

Real estate marketplace Zillow has taken an unusual step by introducing a 1% down payment option in hopes of making private ownership of properties a realistic option for the majority of Americans.

But amid a market where over 75% of homes are unaffordable for middle-income buyers, the efficacy of such an offering remains to be seen. With soaring mortgage rates, a scarcity of inventory, and corporate dominance making headlines, Zillow’s initiative brings hope and questions.

Zillow is an online real estate marketplace that allows users to browse property listings and offers various tools and resources for buyers, sellers, and renters.

Initially available only in Arizona, Zillow’s 1% down payment offering is an attempt to make homeownership more accessible, especially in a market primarily dominated by large corporations and afflicted by skyrocketing mortgage rates. Zillow’s analysis shows that for a homebuyer aiming to purchase a $275,000 home in Phoenix, Arizona, the 1% down payment option would reduce the saving period for the down payment to just 11 months.

While this is a promising start, the offering has its caveats. Smaller down payments result in larger monthly mortgage payments, thanks to the necessity of borrowing more.

The Mortgage Rate Monster: A Stumbling Block for Affordability 

With 30-year fixed mortgage rates now firmly above 7%, the average monthly payment has soared, adding an extra $1,000 to the cost of owning a median-priced home. According to Redfin’s chief economist, rates are unlikely to dip below 6% by the end of the year, creating a challenging environment for both buyers and sellers.

Existing homeowners, many of whom financed their properties during the last decade’s ultra-low interest rates, are also hesitant to list their homes, further contributing to an already strained inventory.

 Regional Disparities and Future Projections

Affordable housing varies dramatically by location. The metropolitan areas with the most affordable housing are in Ohio, while cities like El Paso, Texas; Boise, Idaho; and Spokane, Washington, are struggling with few affordable listings. The overall outlook suggests an inventory shortage that could persist for years, exacerbating the crisis.

Making the housing crisis worse, the median income for cities such as El Paso is barely above the poverty level, with annual incomes in the range of $24,000. Meanwhile, cities such as San Francisco and Manhattan are seeing rent prices soar to stratospheric levels, with monthly payments above $4,000 becoming increasingly common. 

“Our country needs to add at least two affordable homes for middle-income buyers for every home listed for upper-income buyers,” notes Evangelou.

Zillow’s Changing Role: More than Just a Listing Platform

Zillow’s new 1% down payment option comes as part of its transformation into a one-stop-shop for homebuyers, offering services that range from real estate agent access to home loans underwritten by the company itself. This strategic shift follows the shutdown of Zillow’s home-flipping venture due to substantial losses.

Zillow’s 1% down payment option offers a small glimmer of hope in an otherwise grim housing market. Yet, this offering doesn’t solve the larger, systemic problems: corporate dominance, mortgage rates at two-decade highs, and a critical lack of affordable inventory. As Zillow evolves to adapt to this troubling landscape, the industry and consumers alike will watch keenly to see whether this initiative can be a stepping stone to broader solutions—or merely a band-aid on a deepening wound.

The solution to unaffordable housing is elusive. Market forces are increasingly encouraging corporate ownership of private property, making private ownership impossible for most Americans. Yet, there is no appetite among the political class to take on the powerful interests that also fund officeholders’ careers. Worse, an entire generation of younger prospective homebuyers are locked out of the housing market – and forced to rent their homes instead. This practice allows the corporate owners of properties to take even more wealth from the public. 

Union members and unified workplaces offer some protection from the affordable housing crisis. Union members enjoy much more stable and secure jobs, allowing a more steady and reliable income. Moreover, union members out-earn comparable workers in non-union workplaces by as much as 21%. Such factors help union workers pay higher home prices and meet the higher monthly costs. Yet, without significant reform or a potentially devastating market correction, home ownership is likely to become a relic of a previous era.

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American Dream Fading as 75% of U.S. Homes Out of Reach for Middle Class

August 27, 2023

The Unaffordable Landscape: 75% of Homes Out of Reach for Middle-Income Buyers

A recent report from the National Association of Realtors and Realtor.com paints a dire picture: over 75% of homes on the market are now too expensive for middle-income buyers. According to the report, those earning up to $75,000 per year could afford just 23% of all listed properties in the U.S. This is a steep decline from five years ago, when 50% of listings were within the reach of middle-income earners.

“Even with the current level of listings, the housing affordability and shortage issues wouldn’t be so severe if there were enough homes for all price ranges,” says Nadia Evangelou, a senior economist at NAR.

Zillow’s Response: The 1% Down Payment Program

Real estate marketplace Zillow has taken an unusual step by introducing a 1% down payment option in hopes of making private ownership of properties a realistic option for the majority of Americans.

But amid a market where over 75% of homes are unaffordable for middle-income buyers, the efficacy of such an offering remains to be seen. With soaring mortgage rates, a scarcity of inventory, and corporate dominance making headlines, Zillow’s initiative brings hope and questions.

Zillow is an online real estate marketplace that allows users to browse property listings and offers various tools and resources for buyers, sellers, and renters.

Initially available only in Arizona, Zillow’s 1% down payment offering is an attempt to make homeownership more accessible, especially in a market primarily dominated by large corporations and afflicted by skyrocketing mortgage rates. Zillow’s analysis shows that for a homebuyer aiming to purchase a $275,000 home in Phoenix, Arizona, the 1% down payment option would reduce the saving period for the down payment to just 11 months.

While this is a promising start, the offering has its caveats. Smaller down payments result in larger monthly mortgage payments, thanks to the necessity of borrowing more.

The Mortgage Rate Monster: A Stumbling Block for Affordability 

With 30-year fixed mortgage rates now firmly above 7%, the average monthly payment has soared, adding an extra $1,000 to the cost of owning a median-priced home. According to Redfin’s chief economist, rates are unlikely to dip below 6% by the end of the year, creating a challenging environment for both buyers and sellers.

Existing homeowners, many of whom financed their properties during the last decade’s ultra-low interest rates, are also hesitant to list their homes, further contributing to an already strained inventory.

 Regional Disparities and Future Projections

Affordable housing varies dramatically by location. The metropolitan areas with the most affordable housing are in Ohio, while cities like El Paso, Texas; Boise, Idaho; and Spokane, Washington, are struggling with few affordable listings. The overall outlook suggests an inventory shortage that could persist for years, exacerbating the crisis.

Making the housing crisis worse, the median income for cities such as El Paso is barely above the poverty level, with annual incomes in the range of $24,000. Meanwhile, cities such as San Francisco and Manhattan are seeing rent prices soar to stratospheric levels, with monthly payments above $4,000 becoming increasingly common. 

“Our country needs to add at least two affordable homes for middle-income buyers for every home listed for upper-income buyers,” notes Evangelou.

Zillow’s Changing Role: More than Just a Listing Platform

Zillow’s new 1% down payment option comes as part of its transformation into a one-stop-shop for homebuyers, offering services that range from real estate agent access to home loans underwritten by the company itself. This strategic shift follows the shutdown of Zillow’s home-flipping venture due to substantial losses.

Zillow’s 1% down payment option offers a small glimmer of hope in an otherwise grim housing market. Yet, this offering doesn’t solve the larger, systemic problems: corporate dominance, mortgage rates at two-decade highs, and a critical lack of affordable inventory. As Zillow evolves to adapt to this troubling landscape, the industry and consumers alike will watch keenly to see whether this initiative can be a stepping stone to broader solutions—or merely a band-aid on a deepening wound.

The solution to unaffordable housing is elusive. Market forces are increasingly encouraging corporate ownership of private property, making private ownership impossible for most Americans. Yet, there is no appetite among the political class to take on the powerful interests that also fund officeholders’ careers. Worse, an entire generation of younger prospective homebuyers are locked out of the housing market – and forced to rent their homes instead. This practice allows the corporate owners of properties to take even more wealth from the public. 

Union members and unified workplaces offer some protection from the affordable housing crisis. Union members enjoy much more stable and secure jobs, allowing a more steady and reliable income. Moreover, union members out-earn comparable workers in non-union workplaces by as much as 21%. Such factors help union workers pay higher home prices and meet the higher monthly costs. Yet, without significant reform or a potentially devastating market correction, home ownership is likely to become a relic of a previous era.

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$500 Fine for Employer Behind Gruesome Teenage Amputation Incident

$500 Fine for Employer Behind Gruesome Teenage Amputation Incident

Owner of US Guys Processing, Darin Wilbur. Wilbur was found guilty in a criminal case of child endangerment at his business which resulted in a teenager losing his right hand in a meat grinder. He was fined $500 plus costs for the violations. 

$500 Fine for Employer Behind Gruesome Teenage Amputation Incident

IAM141.org

On August 8, 55-year-old Darin Wilbur was fined $1,143 for hiring a minor to perform a hazardous job, leading to the young worker’s hand being lost in a meat grinder, according to Michigan Attorney General Dana Nessel.

The amputation happened on November 19, 2019. According to a state filing, a 17-year-old employee of US Guys Processing in Iona County, Michigan, was operating a meat grinder when his right hand was pulled into the machine.

Soon after the injury, the Michigan Wage and Hour Division took Wilbur, who was supervising him at the time of the accident, to court. The investigation found that Wilbur had illegally ordered the teen to perform work listed as “hazardous” by the State of Michigan. Investigators also found that he failed to secure a work permit for the minor, as required by Michigan law.

The Division’s findings were submitted to the State Department of the Attorney General to pursue a criminal complaint. In August, Wilbur pleaded guilty to the charges.

After the guilty plea, Ionia County District Judge Raymond Voet fined Wilbur $500, plus an additional $148 in fees owed to the teen. Wilbur was also responsible for a “costs” payment to the court.

In passing the sentence, Judge Voet said there was no compelling reason for jail time or probation. He added that child welfare laws clashed with the views of many area residents.

“Ionia County is a farming county, and I know a lot of people in this county view children working, sometimes around dangerous machinery, as part of growing up,” Judge Voet said of the case. He added that the minor would have turned 18 anyway, saying, “Two months later, we wouldn’t even be here.” Additionally, Judge Voet found that Wilbur had told him to “be careful” working with the meat grinder and was unaware of the need to secure work permits for young workers.

“Our labor laws were written to protect children from dangerous workplaces; however, they lack the teeth needed to properly hold bad employers accountable for violations,” said Nessel at the time of Wilbur’s plea. “This case highlights the need to strengthen these protections, as well as the consequences for violations, and I look forward to working with the legislature on this critical work to protect the state’s youth.”

Nessel called on the legislature to re-evaluate the fines for employing minors without the requisite permits and the current statutes and penalties surrounding using children in hazardous occupations, a misdemeanor.

US Guys Processing workers are not unified and do not possess union rights to file grievances when their employer violates the terms of their employment. They also cannot file actionable safety reports or request regular inspections of the facilities, as union members can do.

Front-line workers can file a safety report anytime in the heavily-unified airline industry. These reports are known as Ground Safety Action (GSAP) or Air Safety Action (ASAP) reports, effectively make every employee a fully-deputized safety inspector. The reports are non-punitive, meaning that union members will not face discipline if they report a safety violation or close calls involving their airport duties.

Non-Union employees often have no legal recourse if exposed to unsafe conditions at work. For most, taking a matter to court is too expensive and time-consuming to be a realistic option.

In 2022, a spate of state legislatures enacted measures to roll back child labor laws. Many would make the violations that led to the Michigan teens injuries legal by removing penalties such as fines and jail time for offenders.

Federal regulations ensuring basic safeguards for child workers were established almost a hundred years ago. The child labor regulations have led many to believe that placing teens and children in unsafe working conditions was a thing of the past. In fact, there has been a surge in breaches of child labor laws, even as state legislators are increasingly trying to dilute the criteria safeguarding children at work.

According to a study by the Economic Policy Institute, there’s been a 37% increase in minors working in contravention of child labor laws over the past year alone. Furthermore, in the last two years, a minimum of 10 states have either introduced or approved laws that diminish child labor protections. These efforts to undermine state-level child labor regulations are driven by a concerted push from industry factions aiming to weaken nationwide federal standards. Even worse, the level of child endangerment is likely much higher, as most cases go unreported or even unrecognized as instances of child abuse. As Judge Voet points out, many victims of such abuse consider their mistreatment a normal part of growing up.

Tougher penalties for child labor violations could help reduce the number of children and teens hurt and killed by abusive and exploitative employers. Still, these measures are unlikely to become law anytime soon.

As the Economic Policy Institute study points out, seven bills that will weaken protections for children in workplaces have been introduced in six states. These include Iowa, Minnesota, Missouri, Nebraska, Ohio, and South Dakota.) Arkansas has repealed protections for 14-year-olds, and Minnesota allows teens to work on construction sites. These policies are in addition to already-lax investigations and enforcement of child labor laws, which rely on small fines such as that levied by Judge Voet in the criminal complaint against Daren Wilbur – and those fines are only applied to reported cases. Child labor fines can be calculated as a regular cost of doing business.

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Owner of US Guys Processing, Darin Wilbur. Wilbur was found guilty in a criminal case of child endangerment at his business which resulted in a teenager losing his right hand in a meat grinder. He was fined $500 plus costs for the violations.

$500 Fine for Employer Behind Gruesome Teenage Amputation Incident

August 10, 2023

On August 8, 55-year-old Darin Wilbur was fined $1,143 for hiring a minor to perform a hazardous job, leading to the young worker’s hand being lost in a meat grinder, according to Michigan Attorney General Dana Nessel.

The amputation happened on November 19, 2019. According to a state filing, a 17-year-old employee of US Guys Processing in Iona County, Michigan, was operating a meat grinder when his right hand was pulled into the machine.

Soon after the injury, the Michigan Wage and Hour Division took Wilbur, who was supervising him at the time of the accident, to court. The investigation found that Wilbur had illegally ordered the teen to perform work listed as “hazardous” by the State of Michigan. Investigators also found that he failed to secure a work permit for the minor, as required by Michigan law.

The Division’s findings were submitted to the State Department of the Attorney General to pursue a criminal complaint. In August, Wilbur pleaded guilty to the charges.

After the guilty plea, Ionia County District Judge Raymond Voet fined Wilbur $500, plus an additional $148 in fees owed to the teen. Wilbur was also responsible for a “costs” payment to the court.

In passing the sentence, Judge Voet said there was no compelling reason for jail time or probation. He added that child welfare laws clashed with the views of many area residents.

“Ionia County is a farming county, and I know a lot of people in this county view children working, sometimes around dangerous machinery, as part of growing up,” Judge Voet said of the case. He added that the minor would have turned 18 anyway, saying, “Two months later, we wouldn’t even be here.” Additionally, Judge Voet found that Wilbur had told him to “be careful” working with the meat grinder and was unaware of the need to secure work permits for young workers.

“Our labor laws were written to protect children from dangerous workplaces; however, they lack the teeth needed to properly hold bad employers accountable for violations,” said Nessel at the time of Wilbur’s plea. “This case highlights the need to strengthen these protections, as well as the consequences for violations, and I look forward to working with the legislature on this critical work to protect the state’s youth.”

Nessel called on the legislature to re-evaluate the fines for employing minors without the requisite permits and the current statutes and penalties surrounding using children in hazardous occupations, a misdemeanor.

US Guys Processing workers are not unified and do not possess union rights to file grievances when their employer violates the terms of their employment. They also cannot file actionable safety reports or request regular inspections of the facilities, as union members can do.

Front-line workers can file a safety report anytime in the heavily-unified airline industry. These reports are known as Ground Safety Action (GSAP) or Air Safety Action (ASAP) reports, effectively make every employee a fully-deputized safety inspector. The reports are non-punitive, meaning that union members will not face discipline if they report a safety violation or close calls involving their airport duties.

Non-Union employees often have no legal recourse if exposed to unsafe conditions at work. For most, taking a matter to court is too expensive and time-consuming to be a realistic option.

In 2022, a spate of state legislatures enacted measures to roll back child labor laws. Many would make the violations that led to the Michigan teens injuries legal by removing penalties such as fines and jail time for offenders.

Federal regulations ensuring basic safeguards for child workers were established almost a hundred years ago. The child labor regulations have led many to believe that placing teens and children in unsafe working conditions was a thing of the past. In fact, there has been a surge in breaches of child labor laws, even as state legislators are increasingly trying to dilute the criteria safeguarding children at work.

According to a study by the Economic Policy Institute, there’s been a 37% increase in minors working in contravention of child labor laws over the past year alone. Furthermore, in the last two years, a minimum of 10 states have either introduced or approved laws that diminish child labor protections. These efforts to undermine state-level child labor regulations are driven by a concerted push from industry factions aiming to weaken nationwide federal standards. Even worse, the level of child endangerment is likely much higher, as most cases go unreported or even unrecognized as instances of child abuse. As Judge Voet points out, many victims of such abuse consider their mistreatment a normal part of growing up.

Tougher penalties for child labor violations could help reduce the number of children and teens hurt and killed by abusive and exploitative employers. Still, these measures are unlikely to become law anytime soon.

As the Economic Policy Institute study points out, seven bills that will weaken protections for children in workplaces have been introduced in six states. These include Iowa, Minnesota, Missouri, Nebraska, Ohio, and South Dakota.) Arkansas has repealed protections for 14-year-olds, and Minnesota allows teens to work on construction sites. These policies are in addition to already-lax investigations and enforcement of child labor laws, which rely on small fines such as that levied by Judge Voet in the criminal complaint against Daren Wilbur – and those fines are only applied to reported cases. Child labor fines can be calculated as a regular cost of doing business.

 

 

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Summer Storms and Short-Staffing Cause Massive Travel Disruptions

Summer Storms and Short-Staffing Cause Massive Travel Disruptions

Summer Storms and Short-Staffing Cause Massive Travel Disruptions

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On Monday, storms impacting the East Coast, stretching from Tennessee to New York, led to nearly 9,000 flights being delayed and an additional 1,768 cancellations across the U.S., as reported by FlightAware. A significant portion of these disruptions took place at Hartsfield-Jackson Atlanta International Airport, one of the world’s busiest airports. It witnessed over 590 delays for departing flights, making up almost half of its daily roster, and more than 500 arriving flights were delayed, representing about 41% of its planned schedule.

Atlanta-based Delta Air Lines was particularly hard hit, which saw more than 1,300 delays and 440 flights canceled, or 11% of its entire schedule. “Due to continued severe weather that impacted our Atlanta hub, Delta teams are working hard to recover the operation and we apologize to our customers who’ve experienced delays to their travel plans,” a spokesperson from the airline said in a statement aired on CNN.

The havoc continued into Tuesday, with another 1,400 delays and over 300 cancellations reported by noon, striking close to 17% of 10,060 daily scheduled commercial flights. The storms will impact an estimated 120 million travelers.

In response to the storms, the Federal Aviation Administration (FAA) announced plans to reduce or slow flights in the New York, Philadelphia, and Washington D.C. regions. It warned that weather-related delays might strike as far south as Florida. It is estimated that up to 120 million travelers will be affected.

The storms are not solely responsible for the mass delays and cancellations. Since the end of the Pandemic, airlines have been slow to hire enough employees to cover their operations. United Airlines, for example, used COVID Aid funding designed to retain its workforce to instead lure employees into early retirement. Like other airlines, United is now struggling to find new employees soon enough to handle summer and post-pandemic demand.

In July, Transportation Secretary Pete Buttigieg said his department is investigating several airlines, including United, for “unrealistic scheduling.” According to Secretary Buttigieg, airlines were selling more tickets than they could reasonably expect to accommodate. According to Buttigieg, this practice was directly responsible for delays and cancellations during peak travel periods.

Commercial airlines urgently need to hire 32,000 new pilots, ramp and gate agents, and air traffic controllers, among other critical staff. The Department of Transportation says airlines are falling further behind each year, meaning the airline staffing crisis could stretch out over the next decade.

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Summer Storms and Short-Staffing Cause Massive Travel Disruptions

August 8, 2023

On Monday, storms impacting the East Coast, stretching from Tennessee to New York, led to nearly 9,000 flights being delayed and an additional 1,768 cancellations across the U.S., as reported by FlightAware. A significant portion of these disruptions took place at Hartsfield-Jackson Atlanta International Airport, one of the world’s busiest airports. It witnessed over 590 delays for departing flights, making up almost half of its daily roster, and more than 500 arriving flights were delayed, representing about 41% of its planned schedule.

Atlanta-based Delta Air Lines was particularly hard hit, which saw more than 1,300 delays and 440 flights canceled, or 11% of its entire schedule. “Due to continued severe weather that impacted our Atlanta hub, Delta teams are working hard to recover the operation and we apologize to our customers who’ve experienced delays to their travel plans,” a spokesperson from the airline said in a statement aired on CNN.

The havoc continued into Tuesday, with another 1,400 delays and over 300 cancellations reported by noon, striking close to 17% of 10,060 daily scheduled commercial flights. The storms will impact an estimated 120 million travelers.

In response to the storms, the Federal Aviation Administration (FAA) announced plans to reduce or slow flights in the New York, Philadelphia, and Washington D.C. regions. It warned that weather-related delays might strike as far south as Florida. It is estimated that up to 120 million travelers will be affected.

The storms are not solely responsible for the mass delays and cancellations. Since the end of the Pandemic, airlines have been slow to hire enough employees to cover their operations. United Airlines, for example, used COVID Aid funding designed to retain its workforce to instead lure employees into early retirement. Like other airlines, United is now struggling to find new employees soon enough to handle summer and post-pandemic demand.

In July, Transportation Secretary Pete Buttigieg said his department is investigating several airlines, including United, for “unrealistic scheduling.” According to Secretary Buttigieg, airlines were selling more tickets than they could reasonably expect to accommodate. According to Buttigieg, this practice was directly responsible for delays and cancellations during peak travel periods.

Commercial airlines urgently need to hire 32,000 new pilots, ramp and gate agents, and air traffic controllers, among other critical staff. The Department of Transportation says airlines are falling further behind each year, meaning the airline staffing crisis could stretch out over the next decade.

 

 

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More Info About the ‘That MF’s Not Real’ Airplane Incident

More Info About the ‘That MF’s Not Real’ Airplane Incident

“The Full Story Behind the Viral ‘That MF’s Not Real’ Airplane Incident”

IAM141.org

By now, everyone in the airline industry knows about the “That MF’s Not Real” Incident that happened on a 2 July American Airlines flight headed to Orlando from Fort Worth.

Here’s a recap:

 

The Dallas Airport Police have now made public the report filed after the meltdown, revealing more of the story. 

The woman experiencing the mental health crisis is 38-year-old Tiffany Gomas, a marketing executive and head of Uppercut Marketing. According to a now-removed LinkedIn page, Gomas is a “Top-performing sales leader, Fortune 50 Account Manager & Project Management Executive.”

The meltdown was filmed by several passengers on American Airlines flight 1009 from Fort Worth, some of which have been viewed millions of times. One of the passengers aboard the flight was comedian Carrot Top, who also posted his commentary about the incident on one of his social media accounts.

In the video, Gomez says, “I’m telling you, I’m getting the f*** off, and there’s a reason why I’m getting the f*** off and everyone can either believe it or they can not believe it.”

“I don’t give two f****, but I am telling you right now – that m*****f***** back there is NOT real,” she continued, pointing toward the back of the airplane. “And you can sit on this plane and you can die with them or not. I’m not going to.”

The police report says two officers responded to the disturbance to find Gomas standing in the jet bridge. However, she refused to speak to officers and left the area. 

The report indicates that Gomas seemed very upset, tearfully stating the flight wouldn’t safely reach Florida. The officer informed her she couldn’t board the plane and issued her a trespass notice before escorting her out of the secure areas of the airport. 

She has removed her presence from social media platforms, with her Facebook and Pinterest accounts no longer available. Additionally, her Instagram profile has been set to private.

Gomas told police the incident “was sparked by an argument over wireless headphones.”

A report by journalist Bree Dail says that an American Airlines supervisor said, “The female passenger was arguing with a family accusing them of stealing her air pods. The female then started claiming that the aircraft was not safe and did not want the aircraft to leave due to her believing it would not make it to its destination.” A report by the Daily Mail claims her home is valued at around $2 million.

Despite having her ticket revoked, she later returned to TSA and cleared screening before being escorted out of the secured areas a second time. According to the police report, she could pass TSA screening because her boarding pass was still showing as valid in the TSA database. Since she technically cleared all the steps of the screening process, no breach of security occurred. 

 

Your Employee Assistance Program (EAP) has your back.

Navigating life’s challenges, from mental health struggles to substance abuse, becomes easier with our dedicated EAP. As valued union members, you’re entitled to free, confidential, and compassionate support. Beyond personal care, we help demystify insurance and company policies, ensuring you access the best care possible. Remember, your well-being is our priority. Reach out to EAP whenever you need; we’re here to guide and stand by you.

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August 8, 2023

By now, everyone in the airline industry knows about the “That MF’s Not Real” Incident that happened on a 2 July American Airlines flight headed to Orlando from Fort Worth.

Here’s a recap:

The Dallas Airport Police have now made public the report filed after the meltdown, revealing more of the story. 

The woman experiencing the mental health crisis is 38-year-old Tiffany Gomas, a marketing executive and head of Uppercut Marketing. According to a now-removed LinkedIn page, Gomas is a “Top-performing sales leader, Fortune 50 Account Manager & Project Management Executive.”

The meltdown was filmed by several passengers on American Airlines flight 1009 from Fort Worth, some of which have been viewed millions of times. One of the passengers aboard the flight was comedian Carrot Top, who also posted his commentary about the incident on one of his social media accounts.

In the video, Gomez says, “I’m telling you, I’m getting the f*** off, and there’s a reason why I’m getting the f*** off and everyone can either believe it or they can not believe it.”

“I don’t give two f****, but I am telling you right now – that m*****f***** back there is NOT real,” she continued, pointing toward the back of the airplane. “And you can sit on this plane and you can die with them or not. I’m not going to.”

The police report says two officers responded to the disturbance to find Gomas standing in the jet bridge. However, she refused to speak to officers and left the area. 

The report indicates that Gomas seemed very upset, tearfully stating the flight wouldn’t safely reach Florida. The officer informed her she couldn’t board the plane and issued her a trespass notice before escorting her out of the secure areas of the airport. 

She has removed her presence from social media platforms, with her Facebook and Pinterest accounts no longer available. Additionally, her Instagram profile has been set to private.

Gomas told police the incident “was sparked by an argument over wireless headphones.”

A report by journalist Bree Dail says that an American Airlines supervisor said, “The female passenger was arguing with a family accusing them of stealing her air pods. The female then started claiming that the aircraft was not safe and did not want the aircraft to leave due to her believing it would not make it to its destination.” A report by the Daily Mail claims her home is valued at around $2 million.

Despite having her ticket revoked, she later returned to TSA and cleared screening before being escorted out of the secured areas a second time. According to the police report, she could pass TSA screening because her boarding pass was still showing as valid in the TSA database. Since she technically cleared all the steps of the screening process, no breach of security occurred. 

Your Employee Assistance Program (EAP) has your back.

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