labor lawAdivision of labor law center

With gas prices increasing, revenue declining and profit margins dwindling, many employers are taking a hard look at 2009 staffing. This may include combining positions, reducing staff by attrition, or laying workers off.

According to Sozeen Mondlin, associate general counsel with MITRE Corp, HR managers and employers should give careful consideration to choosing which employees to lay off.

“Given today’s economic climate, we all have to expect more activity in this area,” she said at the Association of Corporate Counsel annual conference in Seattle on October 19 to 21, 2008.

Mondlin said that employers are often sued by workers who (more…)

Every employer should be aware of the Genetic Information Nondiscrimination Act or GINA, which was signed into law by President Bush on May 21, 2008. This law makes it illegal to discriminate against employees in hiring, firing, job placement, promotion or other employment decisions based on an individual’s genetic profile.

According to Francis S. Collins, M.D., PhD., director of the Human Genome Research Institute,  under GINA “No one will need to fear their DNA is going to be used against them.”  Dr. Collins adds, “This law will protect everyone with DNA—and that is all of us.”

GINA also prohibits (more…)

Despite a recent survey that shows Americans waste work time in a variety of activities, they are among the most productive workers in the world.

A recent MSN-Zogby survey shows that up to 50% of workers admit looking for a new job online while at work. Among men, 10% access pornography on work time, while just 1% of women admitted to it. More than half of all workers say they waste time gossiping at work. Other popular time-wasters are paying personal bills, taking personal phone calls and surfing the Internet.

Yet, a recent United Nations study finds that working Americans are the most productive employees on the planet.

The average worker in the U.S. produces $63,885 of products per year, according to the International Labor Organization, or ILO. That’s 14% more than workers in any other country. Workers in Ireland are second, producing $55,986 per year while workers in Luxembourg produce goods worth $55,641. Belgium is in fourth place at $55,235 per worker. Surprisingly, France is in fifth place – ahead of England – with the average French worker producing goods worth $54,609 per year. That’s almost $9,300 per year less than the average U.S. Worker.

U.S. Labor Secretary Elaine Chao recently cited American workers as the envy of the world.

How is it possible that people who waste time on so many activities are also highly productive? Although these two reports initially seem to contradict one another, there are three keys to understating the data. First, while Americans appear to waste time on a lot of activities, the MSN-Zogby study doesn’t attempt to quantify how much time is wasted. An employee who wasted 5 minutes per month on the Internet would count the same as someone who wasted 5 hours per day, under the study methodology. The study also concerned only office workers. It is possible that workers in other environments such as construction or factory workers are more productive than the typical office worker.

Second, it is possible that although Americans waste a lot of time, they waste less time than their counterparts in other countries.

Third, some of the difference is compensated for because Americans tend to work longer hours, and take less time off than workers in other countries. The average American worked 1,804 hours per year in 2006. That’s about 36 hours per week for 50 weeks, with 2 weeks of vacation.

French workers averaged 1,564 hours per year. That’s an average of 34 hours per week for 46 weeks per year, with 6 weeks of vacation. That’s remarkable, considering that in France, it’s currently illegal for an employee to work more than 35 hours per week.

Workers in Norway averaged 1,407 hours per year. For Norwegian workers, that’s the equivalent of working 30 hours per week for 46 weeks per year, with 6 weeks of vacation.

Workers in seven Asian nations put in more hours than in the U.S. In South Korea, Bangladesh, Sri Lanka, China, Malaysia, Thailand and Hong Kong, the average worker puts in more than 2,200 hours per year, the equivalent of working 46 hours per week with no vacation. Productivity in those countries is low, due primarily to a lack of technology.

Longer hours put in on the job doesn’t account for all of the difference between the U.S. and other developed nations. Even on a per-hour basis, the U.S. outperforms all nations in the European Union, Japan and Switzerland. Only workers in Norway (a non-European Union country) accomplished more per hour than in the U.S. Norwegian workers produced goods worth $37.99 for each hour worked, according to the U.N.’s International Labor Organization report. This is far above the American worker’s average production of $35.63.

The U.S. figure is about 50 cents more than that in France, the most productive of European Union nations, in third place. From 1994 to 2003, France led the world in hourly productivity.

Jose Manuel Salazar, the ILO’s head of employment, cites a number of factors that cause increased productivity in the U.S. including, “the information and communication technologies revolution, the way U.S, companies are organized and the high level of competition in the country” among both companies and workers. He also notes that the extensive trade and investment abroad makes U.S. companies more productive.  

“America’s workforce is the envy of the world!” according to U.S. Secretary of Labor Elaine Chao. In the 2007 Labor Day report, Chao points out that despite a recent economic downturn, unemployment remains relatively low and 8.3 million new jobs have been created since August 2003.

In the report issued by the U.S. Department of Labor, Chao points out, however, that the nation faces a skills gap. “In a worldwide economy, the competitive strength of America’s workforce lies in its productivity, innovation, creativity and knowledge base. The majority of new jobs created over the next decade will require more skills, and higher education.” Chao adds that those jobs will pay higher wages, as well. “It’s important to ensure that workers are able to get the education and training they need to access these growing opportunities.”

The 55-page report, entitled “America’s Dynamic Workforce 2007”, outlines a number of trends in the workplace today. The report tries to put a positive spin on an employment picture that is less than rosy by carefully selecting the reported data.

The report’s contention that “the majority of employment growth over the past 6 years was in occupations with above-average compensation” invites comparisons to Garrison Keillor’s Lake Wobegon, where “all of the children are above average.”

In another example of sunny rhetoric on a partly-cloudy topic, the report presents a positive picture of rising unemployment rates. While the overall unemployment rate is about 1% higher than last year, the report points out only that the rate is still about 1% lower than throughout most of the 1990s.

While job growth in the first half of 2007 is disappointing, the report focuses on the good job growth rates in 2006  of 2.3 million jobs. It also mentions the total of 8.3 million jobs gained since August 2003, without point out that 5.5 million of those jobs were necessary just to recover from the recession of 2001. This is a clear case of picking and choosing your statistics to reflect the most positive information. What the report doesn’t mention is that job growth has slowed by 20% in the first half of 2007, to just 871,000 compared to 1.2 million in the same period of 2006. Instead,  the report cheerily proclaims that by 2050, the workforce will increase by 43 million jobs, to 195 million.

The report points out that job growth has increased for 46 consecutive months through June 2007, although it fails to note that the job growth rate has slowed considerably in recent months. Instead, the report characterizes this as a “steady and sustainable economic path.”

The annual Labor Day report in past years has focused on performance in the preceding 12 months. However, with disappointing labor sector numbers, this report uses a different strategy. The report conceals disappointing trends in a number of areas by focusing on the period from 2001 to 2006, in several key areas. These include productivity and real compensation, which is up 7.2% over 5 years.

The U.S. leads the world in manufacturing, with 21% of goods world-wide produced. This compares favorably to other leading manufacturing countries, such as Japan with 13% of the world’s products, China with 12% and Germany with 8%.

The report focuses on the gross domestic product per hour in 2005, reporting that it is $48.30.

American workers are more highly trained than every before, with twice as many people aged 25 to 64 holding at least a bachelor’s degree as in 1970. Employment in positions associated with higher education of a bachelor’s degree or more increased 18.8% between 2001 and 2006.

Instead of focusing on rosy economic news, which is in short supply a the moment, the report stresses that the American workforce is aging, and is increasingly diverse. In an interesting sidelight, the report blames the slowing of job growth on the aging population, perhaps forgetting that most baby boomers are resigned to working until they die.

Workers at Camden Yards, home of the Baltimore Orioles, have delayed a planned hunger strike to protest low wages until Saturday September 8, 2007. The workers reached the decision after hearing encouraging words about an increase in wages from the governor at a Labor Day prayer service and rally at the Light Street Presbyterian Church.  

Workers insist that the issue is dignity and respect, rather than simply money. “Every time I go to work here, I feel like less of a person because of what I have to go through,” said Lamont Pollard. He also said that workers are not given rubber gloves and other needed supplies, and are required to eat their meals in the restrooms.  Pollard has worked for 3 years cleaning up after games. “When I leave, I feel better – like I just got out of jail. It shouldn’t be like that,” he added. 

Workers displayed a sign that read, “Now we hunger for justice”, a quote from Cesar Chavez, the Mexican-American labor leader who regularly launched hunger strikes to protest unfair working conditions, especially among migrant farm workers. 

The state-owned facility is operated by the Maryland Stadium Authority (MSA), which also operates the M&T Bank Stadium, home of the Baltimore Ravens. The MSA is the largest employer of day laborers in the city, with 150 to 200 workers cleaning up after each game.  

The United Workers Association (UWA) has been demanding a living wage for workers who clean up after baseball and football games. UWA, a human rights group founded by homeless day laborers in Baltimore, contends that the state exploits the contract workers, many of whom are African American, by paying low wages. As a state agency, the MSA is exempt from the city’s living wage of $9.62 per hour. 

Maryland Governor Martin O’Malley expressed support for the living wage for the part-time workers. MSA chief Frederick W. Puddester concurred. The MSA board is scheduled to meet on Thursday, September 6, to discuss rebidding of the cleaning contracts. The new contracts would go into place after the end of the 2007-2008 football season.  

“We hope that by postponing the hunger strike, we can provide the MSA [with] the breathing room required to come to a just decision,” said Rose Menustik, a UWA organizer. Menustik added that she hoped the MSA would “come to a just decision and turn actions and intentions into commitments.” 

Scores of workers, along with labor organizers and union reps, crowded in the courtyard behind the Federal Hill church, enjoying snacks including muffins, bagels, and fruit. Workers say that they pick up trash and clean the bathrooms at the Orioles and Ravens stadiums during and after each game. They average $7 per hour. Under current metropolitan law, service contracts with the city must pay at least the living wage of $9.62. A loophole, however, allows the MSA to award contracts to cleaning companies who pay much less.   

Under the Maryland Living Wage law, which goes into effect on October 1, 2007, state government contractors must pay $11.30 per hour in the Baltimore-Washington metro area, and $8.50 in other parts of the state. This is just one of many metro living wage laws in the U.S.  In order to qualify for this rate, workers must work for 13 consecutive weeks over the life of the contract. Because of the many away games, the contract cleaners are often idle for a week or more, which disqualifies them under the law.  

MSA Chair Puddester claims that he has been in favor of a living wage for the contract cleaners since the matter was brought to his attention last month. “Can the stadium authority argue that they’re exempt on a technicality? Yes, they could. But I don’t plan to take that approach.” 

When the full 7-member board is present at a public meeting on Thursday, Puddester plans to ask the members to specify that bids for the 2008 baseball season and 2008-2009 football season specify that workers be paid a living wage.