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Image: www.thinkprogress.org

Image: www.thinkprogress.org

A new media release from colleagues at the NC Justice Center:

New report says quality caregiver wages are critical for quality care given to seniors
Fair wages for home care workers improve continuity of care and strengthen the local economy

Low wages for caregivers threaten the quality and consistency of in-home healthcare services provided to seniors, even as demand those services is expected grow exponentially due to the retirement of the baby boom generation according to a report released today. Recent cuts to the Medicaid reimbursement rate for caregiving have contributed to falling caregiver wages and must be addressed in order to ensure seniors receive quality care.

“Direct care occupations, including home care jobs, are some of the fastest growing occupations. But these jobs offer some of the lowest wages in the state,” writes Sabine Schoenbach, author of the report. “Low wages increase worker turnover, increase long-run costs for providers, and interrupt the continuity of care for consumers. Reimbursement by Medicaid programs, in large part, creates the framework in which employers set wages for direct care workers, and North Carolina’s reimbursement rates have been frozen or reduced since 2009 putting North Carolina $4 per hour lower than the national average rate paid to provider agencies.”

Key findings include:

  • North Carolina is rapidly aging – the population over 65 is projected to more than double by 2050. The aging of the state’s baby boomers will correspond with an increase in community members with functional and cognitive limitations, indicating a growing need for direct care that allows community members to continue to live with dignity.
  • Direct care occupations, including home care jobs, are some of the fastest growing occupations, as North Carolina rapidly ages. Read More
Commentary
As #WageWeek continues to celebrate local and state efforts to improve wages across the country, The Progressive Pulse is highlighting the work of advocates, businesses, and elected officials engaged in innovative efforts to raise wages in local communities across North Carolina. This blog post is the next in this series, and represents a guest post from Carl Rist, board member of Durham Peoples Alliance and convener of the Economic Inequality Action team.

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These are strange times we live in. Recognizing the growing gap between rich and poor, our President has described economic inequality as the defining issue of our time. The presidential candidates from both parties are now talking openly about growing inequality, and yet, it’s now been six years since minimum wage workers got a raise.

In Durham, NC, we’ve launched an innovative effort to recognize employers that pay a “living wage” and raise up the importance of living wages in our community. Durham has long been among the leading cities when it comes to promoting living wages. Durham was the first city in North Carolina and one of the first in the nation to pass a living wage ordinance in the late 1990s. More recently, with new data from the NC Justice Center that shows that Durham has the highest median hourly wage in the state, but the 86th worst income inequality (our of our state’s 100 counties), concern has been growing about the growing gap between rich and poor in the Bull City.

When a local progressive group, the Durham People’s Alliance, began studying the issue and possible solutions, it became clear that finding a local policy solution to this growing problem would be challenging, Two years ago, the General Assembly weakened all living wage ordinances in the state by removing the ability of these ordinances to apply to all city and county contractors. What’s more, a web of state preemption laws related to our state’s constitution keeps us from passing local policies, such as local minimum wage ordinances, that would apply to all private employers.

That’s why members of the Economic Inequality “action team” of the People’s Alliance decided to work with private employers to voluntarily raise wages for workers in Durham.

Read More

Commentary

This is the latest in a series of “Wage Week” posts that we are featuring on The Progressive Pulse to highlight efforts to raise the abysmally low and inadequate federal minimum wage. Follow the discussion on Twitter at #WageWeek

By Vicki Meath, Executive Director of Just Economics

As we approach the sixth anniversary of the last time the federal minimum wage was raised the is Friday, we recognize the need to continue to raise the wage floor. A higher wage floor means more low and middle income workers are participating in sustainable economic activity, keeping money circulating in the local economy. It also means that more full time workers can put a roof over their head and food on their table without outside support. When the wage floor rises to a level where more workers can meet their basic needs, we experience a variety of economic benefits, but also we demonstrate that as a community, we value workers and an economy that works for all.

We are taking time this week to celebrate Wage Week and the hard work of individuals, business leaders, unions, organizations, and elected leaders who contribute to a more just and sustainable economy. While the public narrative often identifies some of these entities as adversaries, we honor the variety of strategies used to stand together on the side of economic justice.

Across the nation we have seen so many recent victories in the effort to raise the wage floor. In Seattle, community advocates worked with elected leaders to pass a bold city wide minimum wage policy. Thanks to the hard work of SEIU, homecare workers in Massachusetts won the fight for a $15/hr wage floor. From brave workers involved in the Fight for 15 to a wealthy venture capitalist, the New York Labor Department’s Wage Board heard testimony last month in support of a higher wage floor for fast food workers and the Board unanimously backed a wage raise proposal.

Here in North Carolina, our state law presents challenges to raising the wage floor at a local level but we continue to find creative strategies to raise wages and build a more sustainable economy. Just Economics, a small nonprofit in Western North Carolina, has the largest Living Wage Certification program in the country and helped develop a replicable model. The Durham Living Wage Project launched a similar program this past spring, identifying businesses voluntarily paying a living wage. The Moral Monday movement initiated by HKonJ and the NC NAACP mobilizes individuals across the state to push for an agenda that includes living wages as major piece of a system that provides equal opportunity for all North Carolinians. Despite the challenges, individuals and organizations across the state are making a difference.

Sometimes the work of justice can seem overwhelming. This week, let us look around, remember the value in this work, recognize our allies, and push forward. We still have a lot of work to do, but we are still winning.

Commentary

Winsotn-Salem teach-inThe demonstration against the North Carolina legislature’s voter suppression law, organized by the NAACP and Moral Monday movement last Monday in Winston-Salem, was a stirring reminder that, fifty years after the Voting Rights Act, civil rights cannot be taken for granted in this country. But the organizers of the day’s event also called attention to another disturbing trend, one that is closely connected to civil rights: the war on poor people, particularly those who find themselves in the most precarious jobs of our economy’s service sector.

A teach-in on economic justice, facilitated by the NAACP, was held on Monday afternoon at Goler Memorial AME Zion Church. Ben Wilkins of Raise Up for 15 launched the discussion by emphasizing that voter suppression laws are aimed not only at minorities, but at poor people.

To emphasize this point, Wilkins quoted Dr. Martin Luther King’s speech of March 25, 1965, in which Dr. King observed that “segregation of the races was really a political stratagem employed by the emerging Bourbon interests in the South to keep the southern masses divided and southern labor the cheapest in the land…[T]he southern aristocracy took the world and gave the poor white man Jim Crow. … And when his wrinkled stomach cried out for the food that his empty pockets could not provide, he ate Jim Crow, a psychological bird that told him that no matter how bad off he was, at least he was a white man, better than the black man.” Read More

Commentary

Notwithstanding the latest oblivious comments of Crown Prince Jeb, the drumbeat demanding a significant increase in the national minimum wage continues to grow louder and louder — both at the grassroots level and in the world of data and research.

Confirmation of the latter can be found in two news studies highlighted last week by the wonks at the Economic Policy Institute.

In study #1, researchers at the federal Bureau of Labor Statistics found that pay for average American workers is and has been stagnant. As EPI President Lawrence Mishel explained in a post last week:

“Their analysis confirms that there has been very broad-based stagnant pay whether one examines just wages or a more comprehensive compensation measure that also incorporates changes in health, pension, and other benefits. The bottom 80 percent of workers had stagnant or declining hourly compensation while the bottom 88 percent of workers had stagnant or declining wages.”

Study #2 comes from EPI’s David Cooper. Here are the key findings:

  • A $12 minimum wage in 2020 would undo the erosion in value of the minimum wage that took place largely in the 1980s. It would also reverse the growth in wage inequality between low-and middle-wage workers over the past generation.
  • Raising the minimum wage to $12 by 2020 would directly or indirectly lift wages for 35.1 million workers—more than one in four U.S. workers. Read More