Workers' Reality Conflicts with Media's Optimism

(Rochester & Genesee Valley Area Labor Federation)

John Sweeney, President of the National AFL-CIO assisted in writing this editorial. 

Despite media headlines emphasizing recent job creation and a housing construction boom, America’s workers are anxious about the nation’s economy and do not hold out much hope for the future, according to new Labor Day polling research released by the AFL-CIO Aug. 30. 

The State of Working America survey, by Peter D. Hart Research Associates, found nearly three of every five respondents (59 percent) “somewhat dissatisfied” or “very dissatisfied” with the economic situation in the country today, up from 53 percent just six months ago. The survey was conducted Aug. 12–17 among 805 adults who are employed or looking for employment.. Their views are born out in a new Census Bureau survey, which shows real median incomes stagnant for a second year in a row, while more people are in poverty and fewer people have health insurance, primarily because of a decrease in employer-provided coverage.

Health care and retirement security top the list of major concerns, with 68 percent and 65 percent, respectively, saying the country is on the wrong track on those issues. Fully three-fifths (59 percent) say they are “just somewhat confident” or “not that confident” that they will be able to retire with financial security.  

“Many commentators talk up the fact that our economy is finally adding jobs—and seem mystified that Americans say the country is on the wrong track,” says AFL-CIO President John Sweeney. “But the more important fact is that working families are in a deep and growing economic crisis—and they know it, even if the Washington and Wall Street crowd doesn’t.”

A strong majority (54 percent) also say they are more worried and concerned about being able to achieve their economic and financial goals in the next five years. Such fears cross economic and gender lines, with 62 percent of women and 50 percent of men concerned about their future.

One of the key reasons behind workers’ economic dissatisfaction: Wages have remained stagnant while the price of everyday essentials keeps going up. For the first time in nine years, more than half  (53 percent) of respondents say their income is falling behind the cost of living. Already stretched thin, America’s workers feel any price increase is a critical concern—with rising gas prices (80 percent) and rising health care costs (68 percent) topping the list of expenses, respondents say they worry about this “very often” or “somewhat often.”   

Workers’ faith in their employers also is souring, with 64 percent saying companies fall very short or somewhat short on being loyal to long-term employees, up from 57 percent in 2002. Meanwhile, 66 percent say they trust employers just some or not much at all to treat employees fairly.

A whopping 86 percent say strengthening laws that protect employees’ right to receive pay and retirement benefits when their company files for bankruptcy should be the top or a high priority for Congress and the president. Eighty-five percent rated providing incentives for companies to keep jobs in America as a priority, while nearly three-fourths (73 percent) say establishing a national health care system should be top or a high priority.

Despite making massive profits, U.S. corporations are not sharing them with workers, according to the Hart research. Seventy percent of the respondents say their employer falls short when it came to providing regular cost of living raises, a big jump from 52 percent in 1999 when Hart conducted a similar survey. The same is true when it comes to employers sharing profits with employees when the company does well, with two-thirds (67 percent) of respondents saying employers are falling behind, nearly double the 34 percent in 1999.   

Workers perceptions through the polling data are not off the mark.  Previous so called recoveries or periods of economic growth saw a different distribution of the wealth, wich supported a strong middle class.  According to NY Times columnist Paul Krugman, as recently as the 90’s  during a recovery – workers got 49%  of National income gain during a time when corporate profits rose 18%.  Now workers are seeing 23% of that growth while corporate profits have increase 44%.  Accordingly, CEO salaries are again making double and triple digit gains while workers real wages are stagnant or declining.

 Continued moves to a de-regulated capitalism, or what I like to call capitalism on crack, do not bode well for our future.  Corporate ties to the right’s ideology cost American jobs lost to even first world democracies.  The auto industry is a prime example as health care costs add about $ 1000 per vehicle in production costs over Canada, Europe and Japanese auto factories where National Health Insurance is the norm.  Sadly, while corporations use globalization and cry crocodile tears over the need for further deregulations.  The Wall Street Journal maintains that currently, same as for the last decade, corporate profits are at historical highs while corporate taxes are at historical lows. One need not hold  an MBA to realize the unprecedented government deficits, with unprecedented consumer debt and energy prices rising to historical highs will not allow low interest rates and low inflation indefinitely.  Working people and our country are in for even rougher times if Labor and our allies are unable to change the direction of these policies