Nicole Cardoza Nicole Cardoza Nicole Cardoza Nicole Cardoza

Fight for fair labor.

Happy Thursday! And welcome to Issue No. 100 of the Anti-Racism Daily. There's a lot of new faces here. In case you missed it, I publish one newsletter each day on ways to dismantle systemic oppression, written by me or lovingly curated from diverse voices.

This newsletter started as a work in protest – a consistent commitment to change. To honor it, we've created a sweatshirt, t-shirt, and coffee mug embroidered with our tagline. All proceeds will be donated to mutual aid funds supporting communities of color during these stressful times. Get yours here >

As for today's newsletter, I wrote this because I feel a labor strike is coming. And when it's time for us to take action, I want us to remember why it's so important for us to advocate for fair labor rights – starting with the vulnerability of low-wage workers. Stay tuned.

And thank you all for your contributions. To support our work, you can give one-time on our website, PayPal or Venmo (@nicoleacardoza), or subscribe for $5/mo on our Patreon.

Nicole

TAKE ACTION

  • Add an extra tip wherever possible. Many food/delivery companies are inflating fees that don’t reach the worker that’s helping you. Double-check to ensure you’re directly supporting the workers supporting you.

  • Commit to buying from only small businesses one day a week. Work to increase that frequency by the end of the year.

  • Where possible, stop supporting major businesses that exploit low wage workers.

  • Research: What is your city/state doing to protect low-wage workers?

GET EDUCATED

By Nicole Cardoza

Before the pandemic, employment growth looked promising at first glance. The U.S. experienced its longest job expansion period in history, growing consecutively since The Great Recession of 2009 (PBS). But a closer look at the numbers showed that a vast percentage of job growth stems from low wage work, defined as someone who earns less than two-thirds of the median hourly wage for full-time workers (USCS). In 2019,  44% of American workers – 53 million people – were low-wage workers, earning $10.22/hr on average, which amounts to just $17,950 a year (Brookings).

📰 Read more about the unemployment gap in our August 9 newsletter >

Low-wage work is precarious. It often doesn’t come with job security and benefits, and the pay structure can be inequitable (keep reading for thoughts on tipping). And job development opportunities are slim; low-wage workers are the most likely to remain stuck in their wage bracket when they switch occupations (Brookings). 39% of employed people in households making less than $40,000 were furloughed or lost their job in March, as opposed to just 13% of households making over $100,000 (Politico).

And at least half of the low-wage workers in America are people of color, which is likely underreported. 63% of Latino or Hispanic workers and 54% of Black workers earn low wages, compared to 36% of white workers and 40% of Asian American workers. And Black and Latino or Hispanic workers earn less than white workers with similar educational levels and experience (Brookings).


Which is why we have to read the latest unemployment numbers with a grain (or spoonful) of salt. Although the newest reports indicate that hourly earnings rose 4.7% from a year ago, that's actually because so many low-wage workers have left the industry, skewing the numbers (Salon). A study by researchers at the University of Chicago's Becker Friedman Institute in July found that just 9% of highest earners were laid off amid the business closings while the brunt of job losses fell on the lowest-earning workers. And, researchers believe that roughly half of low-wage workers that have lost their jobs are not classified as unemployed because they are not actively searching for a new job.

The last insight is most horrifying, because it indicates how uncertain future wage jobs are right now. As schools transition online, companies adopt remote work long-term, the travel industry contracts and retailers reconsider commercial leases, many low-wage jobs in maintaining these spaces are being cut. Scott Rechler, the chief executive of RXR Realty, which owns over 20 million square feet of office space in New York City, estimates that “every office worker sustains five service jobs, from the shoeshine booth to the coffee shop.” Yet only about 12 percent of his tenants are in the office (NYTimes).


📰 Many wage workers are also considered essential workers during this time, which means people that can work are exposing themselves to contracting the disease. Learn more about how you can support essential workers in our June 21 newsletter > 
 

Workers that survived off of tips are also struggling because of the pandemic. Federal law, along with many states, requires employers to pay the difference between what the workers earn after tips and the regular minimum wage. But many employers are falling short by intentionally stiffing workers for most or all of their pay (NYTimes). Most cities and states rely on workers to file complaints before investigating businesses, rather than inspecting workplaces. Advocates believe that inspectors are “going easy” on smaller businesses, empathizing with the economic difficulties of this recession. And, workers are more fearful of retaliation now than ever before as other job prospects dwindle. Together, this creates a structural lack of accountability, which can permanently damage the wage industry.

📰 The history of tipping is rooted in slavery. Learn more in our August 16 newsletter > 


Citizens across the country are already advocating for change. Workers in Philadelphia are unionizing, creating systems of accountability for local institutions, and representing their communities in district councils (Philadelphia Inquirer). The community in Lansing, MI has organized to protect tenants that are at risk of being evicted and pressuring local leaders to increase the minimum wage and add sick pay, an initiative that’s previously been adopted but watered down by the state government (Lansing State Journal).

“There’s been an awakening to the fact that these issues can be addressed by organizing and legislation. People are seeing the power of direct action to effect change.”

 Valerie Braman, a labor educator at Pennsylvania State University, for Philadelphia Inquirer.

That’s why it’s important to watch the story unfold about Proposition 22, an initiative on the ballot in California this November. It aims to prevent companies who employ gig workers, like rideshare drivers, to reclassify them as employees, which would give them benefits like minimum wage, overtime, and unemployment insurance (CBS Los Angeles). The campaign Yes on Proposition 22 received $181.4 million from five rideshare and app-based companies—Lyft, Uber, DoorDash, InstaCart, and Postmates – to ensure it passes (Ballotpedia).

If passed, the bill may make it harder for gig workers that aren’t looking for job security or structure to take jobs like these. But, it will also move to protect those that rely on these jobs with benefits like a minimum guaranteed wage, overtime, unemployment, and anti-discrimination protections, while holding multi-million dollar businesses accountable for wage exploitation.
 

And as major companies increasingly gain market dominance, we may see more low-wage workers exploited for power. Corporations like Amazon and Wal-Mart are thriving due to the pandemic, and their margins are also possible because, in part, of their high propensity for low-wage workers. With little oversight from the federal government, there’s nothing to prevent this hiring practice to continue – but us. We must advocate for the wellbeing of low-wage workers at the polls and do our part to invest in businesses that center their needs.

key takeaways

  • Low-wage workers are a significant part of the total employed population of the U.S.

  • Low-wage workers are disproportionately losing their jobs due to COVID-19

  • These workers are also disproportionately women and people of color, who are systemically discriminated against in the workforce and have fewer opportunities to grow from their wage bracket than others, regardless of economic or educational background

  • Low-wage workers are more vulnerable now than ever because of limited job opportunities and large, market-dominating companies thriving during the pandemic

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