If You’re Surprised By America’s Wage Stagnation, Then You’re Not Paying Attention
President of AFL-CIO Transportation Trades Department
There’s been a lot of talk lately about the economy and how well it’s doing. The unemployment rate has steadily fallen for years now, and jobs are being created.
But wages? Not so much.
The latest jobs report shows that while the unemployment rate remains low, wages aren’t keeping up with inflation. Instead, they are falling flat.
Some economists and policymakers seem baffled — but TTD and our affiliated unions aren’t.
Yes, there are a number of reasons for this trend. But, as we reflect ahead of Labor Day, it is clear that anti-union policies, like so-called “right to work” laws, and failure to invest in our crumbling infrastructure are contributing factors that need to be called out and addressed.
Unions act as a check against corporate power, making union representation one of the most reliable ways for working people to improve their quality of life and secure a living wage. In fact, data shows a direct correlationbetween high union density and higher wages and better benefits. And while union members are more likely to have a pension, employer-paid health insurance, and earn an average of 13.2 percent more than their non-union counterparts, the union difference doesn’t just affect those covered by collective bargaining agreements. Strong union contracts influence competition, driving up wages, benefits, and standards of living for non-union workers too.
So what happens when working people don’t have access to unions? Take a look around – we’re seeing it right now. While millions of Americans struggle just to get by, the average CEO makes nearly $14 million annually – 200 times what an average employee earns. This is not a coincidence. It is the result of ruthless, decades-long attacks on the rights of working people to demand better for themselves and their families.
As for all those jobs being created, it is time we ask ourselves what kind of jobs they are. Based on an analysis from MIT’s living wage calculator, it takes a typical family of four (two adults, two children) more than $58,000 annually to have their basic needs met. A minimum-wage, non-union job just won’t cut it.
This country needs more good jobs — the kind that allow people to own a car, buy a house, and put their kids through college. Attacks on the rights of working people to negotiate together for better wages and benefits are not the only reasons these jobs are lacking. Failure by political leaders to invest in our nation’s transportation system hasn’t just left us with infrastructure that’s crumbling and dangerous — this inaction has also resulted in missed opportunities to create as many as 900,000 long-term, good paying jobs, annually.
Thanks to high union density in transportation and infrastructure industries, people working in these sectors — including frontline workers who build, operate, and maintain our transportation system — earn higher pay, better benefits, and more job security than their low-wage counterparts. In fact, at $38,480, the median annual wage paid by occupations in infrastructure is nearly $4,000 higher than the national median wage.
When Congress considers transportation and infrastructure spending, TTD and our affiliated unions will fight for policies that ensure these investments will continue to create the type of jobs we know our country needs. We cannot support an infrastructure plan that threatens long-standing labor standards or undermines the collective bargaining rights of working people.
There are ways to turn things around and make our economy work for everyone. But doing so requires taking a stand against the rich and powerful — something working people cannot do alone. America needs a commitment from political leaders on both sides of the aisle, not only to invest boldly in infrastructure, but to end attacks on the rights of working families, and understand that strong unions aren’t part of the problem — they are part of the solution.
