Sunday, July 28, 2013

“Long-term trends have not been kind to low-wage workers,” said Lawrence F. Katz, an economics professor at Harvard University. “They’ve been hurt by technological change” — scanners, for instance, have reduced the demand for supermarket cashiers — “and by the decline in institutions like labor unions and the minimum wage,” which has not kept up with inflation in recent decades. “Then on top of that is an extremely weak labor market.”

From:

Fighting Back Against Wretched Wages

The New York Times

"Their anger has been stoked by what they see as a glaring disconnect: their wages have flatlined, while median pay for chief executives at the nation’s top corporations jumped 16 percent last year, averaging a princely $15.1 million, according to Equilar, an executive compensation analysis firm...

 “Long-term trends have not been kind to low-wage workers,” said Lawrence F. Katz, an economics professor at Harvard University. “They’ve been hurt by technological change” — scanners, for instance, have reduced the demand for supermarket cashiers — “and by the decline in institutions like labor unions and the minimum wage,” which has not kept up with inflation in recent decades. “Then on top of that is an extremely weak labor market.”...

 Lorraine Riley James makes $9.35 an hour at the Macy’s on North Michigan Avenue in Chicago and has received just $1.35 in raises since starting there six years ago. “I have so much experience that I don’t feel what they’re paying me is fair,” she said. “I generated a quarter of a million in sales for them last year.”...

Corporate America has embraced many strategies to slice labor costs. Many Walmart stores — as part of a new strategy to save on wages and benefits — are hiring only temps to fill job openings. Scores of companies are relying increasingly on part-timers, who typically get paid several dollars less per hour than full-timers."

Check out the entire article here.

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