Posts tagged: unions
Nicole Aschoff on the “Alt-Labor” movement, such as the Walmart and fast food strikes:
University of Colorado-Denver management professor Wayne Cascio has shown, through a comparison of Walmart/Sam’s Club and Costco, that low wages are not necessary for high profits and productivity. Costco employees average roughly $35, 000 per year ($17 per hour), while Sam’s Club workers average roughly $21, 000 per year ($10 per hour) and Walmart workers earn an average of less than $9 an hour. Costco also provides it workers predictable, full-time work and health benefits. However, contrary to popular assumptions, Costco actually scores higher in relative financial and operating performance than Walmart. Its stores are more profitable and more productive, and its customers and employees are happier.
Costco is not exceptional. Zeynep Ton, of MIT’s Sloan School of Management, has studied retail operations for a decade and argues that “the presumed trade-off between investment in employees and low prices can be broken.” “High-road” employers like Trader Joe’s, Wegmans, and the Container Store have all found ways to make high profits and provide decent jobs. Catherine Ruetschlin’s research shows that a modest wage increase—bumping up the average annual salary of Walmart or Target workers to $25,000—would barely make a dent in big retailers’ bottom line, costing them the equivalent of about 1% of total sales. Even if a company like Walmart passed on half the cost of the increase to customers, the average customer would pay roughly $17 more per year, or about 15 cents per shopping visit. And, considering most low-wage workers spend nearly their entire paycheck on necessities, the industry would see a boost in sales ($4 billion to $5 billion more per year) to its own workers. Fast-food companies are highly profitable. McDonald’s alone saw profits more than double between 2007 and 2011. They could easily send some of these profits downstream to franchise owners and workers.
So why do most big retailers and fast-food chains insist on a bad-jobs or “low road” model? There are a few reasons. MIT’s Ton argues that labor costs are a large, controllable expense, and retailers generally view them as a “cost-driver” rather than a “sales-driver.” Store-level managers are pressured by higher-ups to control labor costs as a percentage of weekly or monthly sales. And because store managers have no control over sales (or merchandise mix, store layout, prices, etc.) they respond to pressure from above by cutting employment or forcing workers to work off-the-clock when sales dip. Another factor is financialization—the increasing dominance of finance in the economy. Firms feel a lot of pressure from Wall Street to be a Walmart and not a Costco. As Gerald Davis has argued, the rise of finance and the dominance of “shareholder value” rhetoric have resulted in an emphasis on short-term profits that register in increased share prices and big CEO bonuses.
Full Story: Dollars and Sense:
This is encouraging, but the possibility of fast food companies switching to “less-costly, automated alternatives like touch-screen ordering and payment devices” is not an idle threat. I’ve seen something like this setup in the food court at the JFK airport. But as I wrote earlier, cultural issues could stop this from becoming widespread — it’s not clear that customers will settle for robots and touch screens over human beings. But I sure wouldn’t rule it out.
On the “quantified work” beat:
Researchers have estimated the average wage on Mechanical Turk is just $2 an hour, and some claim that’s an overestimate. Craigslist-style scams are common, in which requesters ask for up-front payments in exchange for later rewards, then disappear. If employers decide a completed task is unsatisfactory, they can decline to pay and still keep the resulting work. As a result, workers complain that many requesters decline work simply to get out of paying.
Experts estimate Mechanical Turk sees as much as $400,000 worth of transactions every day, but despite the money, Amazon has kept a hands-off attitude to the marketplace. Workers are left to fend for themselves.
But a new tool may give Turkers a secret weapon of their own. It’s called Turkopticon, a browser plug-in that aims to turn the tables on requesters by giving workers a chance to rate employers by reliability.
Guernica interviews Ai-jen Poo, founder of the National Domestic Workers Alliance:
The project grew out of work within CAAAV, where many of the Filipina domestic workers who were organizing had worked in Hong Kong as domestic workers before coming to NYC. In Hong Kong, there are domestic workers from all over Asia, there are Indonesian workers, Filipina workers… It’s a multinational situation, and everyone works under a standard contract. There are set hours, guidelines, wages, and standards that are enforced. When the Filipina domestic workers came to the U.S., many were surprised to find so little protection and that in fact, domestic workers are excluded from a lot of labor law protections.
It was obvious to them that they couldn’t win better conditions alone, that they would have to develop a project with all domestic workers in the field. I had experience with multiracial coalition building and our organization already had that ethic, but the workers themselves also felt it was a natural next step to figure out a way to organize together as an entire workforce, which became Domestic Workers United.
Full Story: Guernica: The Caregivers Coalition
Interestingly Poo never uses the word “union” to describe the NDWA.
Salon reports on a worker walk-out at McDonalds and chains such as Burger King, Domino’s, KFC, Taco Bell, Wendy’s and Papa John’s in New York City. The workers, organized by New York Communities for Change, are demanding a raise to $15 an hour. Strikes are also being organized in Chicago, organized by Workers Organizing Committee of Chicago. This follows Black Friday strikes at Wal-Marts across the nation.
The article reports the huge challenges that these workers face in bring about change in their working conditions, but notes some interesting trends happening here:
The New York and Chicago campaigns evoke two strategies that have been long debated but infrequently attempted in U.S. labor. First, “minority unionism”: mobilizing workers to take dramatic actions and make demands on management prior to showing support from the majority of employees. Second, “geographic organizing”: collaboration between multiple unions to organize workers at several employers and win public support for raising a region’s standards through unionization. This campaign is also the latest example in which community-based organizing groups, which unions have long leaned on to drum up support for workers, are playing a major role in directly organizing workers to win union recognition.
I wrote at TechCrunch:
Despite the efforts of many different organizers over the years software developers have resisted unionization. The relatively high pay and good working conditions of developers, the stereotype of geeks as loners and the general decline of unions in the U.S. are all commonly cited reasons. But maybe unions are failing in tech because they’re not addressing the real issue: giving developers more control over their work life.
Developers want autonomy. They don’t want to be jerked around by stupid managers who impose unrealistic deadlines, make impossible promises to clients and just generally disrespect their employees. Historically developers have had two options for dealing with bad management: find a better job or found a startup. But worker self-management would offer a third options — give the developers control over their own work.
Companies like Valve prove that self-management can work in the software industry. Unionization could potentially provide a path to that sort of workplace structure, if organizers can move up Maslow’s pyramid a bit.