Huffington Post offers a great chart that contrasts the minimum wage and productivity since 1947. The picture is stunning. The poorest working people tread water while they contribute to consistent increased productivity. According to the article, a minimum wage that kept up with productivity would be $21.72 per hour. Instead, it remains at $7.25.
Where does the extra value poor working have produced go? Maybe we should ask the billionaires.
Today’s Huffington Post offers a fascinating and frightening analysis of youth unemployment. The overall loss to the nation is estimated at $18 billion, but behind that big number are millions of young people who will struggle to survive. Beyond the unemployed most of the new jobs created over the past few years have been low wage, which means that many other young people are starting their careers with little opportunity to save money.
While we need to pay attention to unemployment, we should also look to other factors that impact young people, such as student debt. Young people who attend college are less likely to be unemployed, but they are often leaving school with a debt equal to a small mortgage. If Congress does nothing (which is what it has done best over the last few years), interest on student loans will double later this summer.
Our political leaders need to start focusing on this problem. However, given their general failure to care about working people and the unemployed, it’s most likely that the problems described above will only get worse, and young people will suffer because their elders are acting like children.
Beware of sensational headlines. For example, today’s Huffington Post features an article with the front page headline of “Poll: Huge Number of American Want Christianity as State Religion.” However, when you follow the link, the headline and story change tone: “Christianity as State Religion Supported by One-Third of Americans, Poll Finds.” That same headline could be rewritten to say that two-thirds of Americans reject Christianity as a state religion.
I often see a similar problem in writing about careers and jobs. Simple claims, often negative news, takes on significance because they are reposted from website to website. For example, about a year ago there was a meme that said you would not be hired unless you are currently employed. Some employers posted a help wanted ads that said only currently employed workers should apply. Only a few companies did this. The megaphone power of the Internet turned this minor problem into reality for many people who were unemployed.
What should we do? Test all claims that seem too easy to believe. When clients brought up the example of companies only hiring people who were employed, I’d ask them to put themselves in the employer’s position. If two candidates are equally (or even similarly) qualified, would you hire someone who is employed or unemployed? Most employers would go with the unemployed candidate because that person would be cheaper. Some who is employed is able to negotiate and even say no. The widely posted claim made no sense.
Media loves simple, scary stories. As the two examples above show, they often are not true. Yes, a third of Americans might want a national religion, but a third is not even close to a majority. Yes, a few employers may have wanted to hire people who are currently employed. But, again, it’s not logical to assume most employers would do this. Whenever you’re faced with the scary headline, test its claim. Usually you’ll find the claim is overblown, if not totally false.
Huffington Post offers a useful list of clichéd words that should be avoided in business communication, including resumes and job interviews. Overall, I like the list. However, at least two of the words have some value. Scalable is frequently used to discuss a level and type of IT projects. Similarly, value-added can refer to a transaction which includes intangible benefits. These words, like the others on the list, should not be used just because they are “buzz words.” Know what you want to say and why you want to say. That’s the best formula for effective communication.
In his State of the Union speech, President Obama proposed a $9 minimum wage and that the minimum wage should be pegged to inflation. It’s great that he made this statement, but, given the GOP domination of the House, this proposal is nothing more than an act of wishful rhetoric.
It also doesn’t address the bigger problem: stagnant wages and wage cuts. One of my clients has spent 20 years in the insurance industry. Over the last seven years, her commission has been cut from 15% to 10%. If she doesn’t hit a target, it can go as low as 8%. The company she works for is very profitable (You know, one of those major corporations that pays little to know federal taxes). The industry is also profitable. So why the salary cuts? More money needs to be pushed to the top.
I think the minimum wage does need to be raised. I also believe that the government needs to do more to spur job growth. However, as long as workers are getting squeezed in what they are paid and not paid (benefits), the bigger problem will be a shrinking middle class and a larger class – the working poor. Few politicians talk about that problem, and it will impact all of us very soon.
Mark Gongloff of Huffington Post reports that Lloyd Blankfein, head of Goldman Sachs, is getting a 75% raise. Normally, I would try to make snarky comments here. However, I cannot match Gongloff’s skill in putting this news in its proper context. I urge you to read his article and enjoy his skill at describing the absurd.
Huffington Post reports that a McDonald’s employee in Wales was fired for putting too many sprinkles on an ice cream dessert. She was an experienced worker with good evaluations. She sued and settled with McDonald’s for £3,000 (about $5,000). The moral of the story is to fight back. Workers in Wisconsin and Michigan may not win today, but they will if they keep fighting – as teachers did in Chicago, and as did a worker who was fired for using too may sprinkles. The Staple Singers said it best: “Respect yourself.”
Huffington Post has published a brief article and slideshow on different reasons people have given for quitting their jobs. These testimonies indicate again that employers can push workers too hard. Even in a bad job market, people can be pushed too far. Here are some of the reasons given for quitting:
Even when unemployment is high, there is a time to say enough is enough.
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Walmart on the Cheap
Tags: benefits, business, contingent labor, economy, Huffington Post, low wage employees, new businesses, retail, temporary workers, wages, Walmart, work
Huffington Post has posted a Reuters report that Walmart is only hiring temporary employees in several states. This move lets the retailers staff busy times without taking on full time employees, The report also notes that hours of some full time employees are being cut. Other retailers are following a similar model.
As I blogged yesterday, the biggest problem facing workers today isn’t unemployment. It is wages. It doesn’t matter if someone is at a low wage job or if they are paid a decent hourly wage with limited hours, in either case, the worker is not making enough money. Walmart and other companies are looking ways to push up profits and share prices. Too often they are doing so on the backs of working people.