Posts tagged recession
Trump’s tariffs hurt the working class. Why are some unions on board?
April 28, 2025 // “In truth, our trade deals were not really trade deals; they were investment deals. Their goal was not to promote America’s exports — it was to make it easier for global corporations to move capital offshore and ship goods back to America,” Richard Trumka, the former president of AFL-CIO, said in 2015. “The logical outcome was trade deficits and falling wages, and that’s exactly what we got.” For unions, tariffs were a part of the answer to failures of free trade along with other protectionist policies. But to free trade proponents, tariffs represent a break from consensus and threaten to break down trade relations across the globe.
California’s $20 Fast-Food Minimum Wage: Job Losses, Higher Food Prices, Increased Automation
February 19, 2025 // The BRG study found, “California’s fast-food restaurants lost 10,700 jobs between June 2023 and June 2024, making it the worst performing year outside of a recession, and the COVID-19 pandemic. Additionally, food prices at local restaurants have increased by 14.5% since the legislation was signed, nearly double the national average. AB 1228 was signed into law in October 2023 by Governor Gavin Newsom, creating the new $20 minimum wage for fast food employees – a massive 25% increase from the $16 minimum wage.
CONNECTICUT: State Employee Union Cries Recession is Coming to Save Temporary Jobs
November 26, 2024 // One of Connecticut’s largest unions, AFSCME Council 4, is pressuring Gov. Ned Lamont, along with Sen. Paul Cicarella (R-North Haven) and Rep. Mary Mushinsky (D-Wallingford), to intervene in stopping the planned layoffs of 49 federally funded, temporary employees at the Connecticut Department of Labor (CTDOL). In a call to action posted on AFSCME’s website on Oct. 15, the union argued that “these layoffs are NOT due to a shortage of work,” claiming that these workers are still essential as job growth has “severely declined nationally.” AFSCME also painted a grim picture, warning that “a recession is anticipated soon” and suggesting that Connecticut’s government is ill-equipped to handle an economic downturn when it materializes.
Report Rips Biden–Harris Labor Secretary Julie Su
September 23, 2024 // One individual used the name “Mr. Poopy Pants” on his official application and “received an approved claim.” Rapper Nuke Bizzle filed “92 fraudulent applications” and posted a video about the ease of ripping off California’s Employment Development Department (EDD) that gets a lot of attention in the “Widespread Fraud” report. “EDD, under leadership of Labor and Workforce Development Agency (LWDA) secretary Julie Su, made the decision early in the pandemic to ‘pay and chase’ after she was informed that keeping integrity checks in place would lead to a backlog in processing claims largely due to EDDs outdated IT,” the report says
Michigan’s largest unions have seen plummeting membership over the past decade
April 18, 2024 // Analysis Michigan’s largest unions have seen plummeting membership over the past decade Jobs and incomes are up, workplace injuries are down By Jarrett Skorup | April 16, 2024Share on FacebookShare on X Photo by Kateryna Babaieva on Pexels In recent years, most of Michigan’s largest labor unions saw massive declines in membership, despite significant job growth in most industries. The reason? A decade with right-to-work law, which gave workers the ability to choose whether to join a union, as a member or through a fee, or not. The reports many labor unions are required to file with the federal government reveal the state of labor union membership, as do reports from the Michigan Civil Service Commission. Every one of Michigan’s 15 largest unions or so has seen a decline, whether in state government, schools, local government, or private industries such as construction or food service. But the declines are uneven. A variety of AFSCME associations, representing mostly state and local government workers, have seen a loss of more than half their members. The SEIU, which mostly represents workers in health care and local government, is down nearly 70%. Despite job gains in the auto sector over the past decade and a highly publicized strike last year, the UAW branches in Michigan have lost 16,000 members over the past decade. Other private sector unions have seen fewer losses. These include the United Food and Commercial Workers (-8.7%), Michigan Regional Council of Carpenters (-6.8%), the Operating Engineers (-2.5%) and Michigan Nurses Association (-3.7%). Losses in the public sector are much more pronounced than those in the private sector. The Michigan Education Association has now lost more than 38,000 members, or one-third, since the right-to-work law went into effect in 2013. The American Federation of Teachers branch, the bulk of which is in the Detroit Federation of Teachers, is down more than 25%. The Michigan public school system added 27,000 employees since 2012, but its largest employee unions have lost a combined 45,000 members. The total number of public sector union members in Michigan has dropped by 80,000 since the right-to-work law was passed. Unions representing state of Michigan employees are down by more than one-third. That may soon change. The Democratic-led Michigan Legislature repealed the state’s right-to-work law in 2023. The UAW and other unions representing workers for private employers can now require them to rejoin or pay fees. A 2018 ruling from the U.S. Supreme Court means that public sector employees such as schoolteachers still have the right to decline paying or joining a union. Repealing the law is expected to boost union membership and financial support for the Democratic Party. In fighting in 2012 against a law allowing workers to opt out, SEIU Healthcare Michigan President Marge Faville said unions needed the forced funds to “make sure Democrats get [elected].” Just before legislators voted to enact a right-to-work law, a local Michigan Education Association leader sent an email out on a public server to tell other public school employees that “[emergency management] is the future in Michigan with a Republican governor and Legislature” and union members need to “[get] everyone we know to vote for Democrats.”
Opinion: Minimum Wage Changes Spell Trouble for Virginians
February 8, 2024 // The Virginia House of Delegates voted in favor of bill HB1 that would increase the states’ minimum wage to $15 an hour by 2026. If enacted the minimum wage increase would lead to job loss between 34,600 and 57,700 jobs An increase to a $15 an hour minimum wage would cost the state of Virginia over 83,000 jobs in the three years following enactment.
Commentary: Expect More UAW Strikes, and Be Prepared
November 21, 2023 // Many sectors could see the impact of labor momentum. Every union should be studying the UAW negotiations and strikes. The circumstances will be different at each company and negotiation, but a more aggressive and strategic approach is likely to be valuable in many contexts. Unions should also look at the UAW ratification process, internal communications, supplier headaches and unionization drives for lessons to emulate and avoid. On the management side, companies – particularly if they are unionized – should expect unions to follow the new playbook. Employers will need to study the lessons as well and prepare for a more confrontational labor environment. Companies other than the D3 should firmly resist the pressure to align their contract expiration and avoid what is likely to be a confrontational spring in 2028. This is only a small example of how companies would benefit from the 360° perspective that game theory and scenario wargaming give in complex and uncertain times.
UAW workers could begin striking this week. Here’s what we know about negotiations.
September 12, 2023 //
How YIMBYs won over unions in California
August 22, 2023 // The Trades acknowledges there’s a shortage of workers for California’s needed residential construction, and they know their existing unionized workforce is getting older. A union-backed study from 2019 stipulated that to meet the state’s affordable housing goals, California would need to recruit at least 200,000 new workers. But the Trades insist things are not so dire yet that leaders need to abandon “skilled and trained” requirements, and they say more people will be incentivized to become “skilled and trained” only if lawmakers guarantee good union jobs waiting on the other end of an apprenticeship. About 70,500 people have graduated from these apprenticeships between 2010 and 2022, according to the California Department of Industrial Relations. In the end, California lawmakers didn’t really have to make a choice, and ended up passing Wicks’ bill, along with another similar bill that included the Trades’ preferred “skilled and trained” language. For now, developers basically can choose which law they want to follow if they want to convert strip malls to housing. (Yes, really.) “AB2011 was a huge victory, but they allowed the building trades to save face by passing both bills,” said David, the YIMBY activist.
Google Axes 12,000 Jobs As Big Tech Layoffs Continue
January 25, 2023 // The Google layoffs follow heavy jobs cuts at Facebook parent company Meta, Amazon, Microsoft, Salesforce and numerous other firms as higher interest rates and fears of a recession hammer the tech sector. According to an analysis conducted earlier this week by The Standard, tech companies have laid off roughly 90,000 workers in the last year and more than 12,000 workers in San Francisco during this month alone. Those layoffs span major local employers such as Salesforce and a smattering of smaller startups.