NLRBA lot of people are engaged in nonstandard employment today.  Whether you call it contingent work, the gig economy, the “sharing” economy or outsourcing, they are all models in which the workers who perform labor do not have a recognized employer-employee relationship with the business or entity for whom they are performing labor.  These models have become more prevalent over the last thirty years or so.  The use of temporary staffing companies to supply labor, or “temps,” is just one example.  Temps used to be mostly used for white-collar secretarial work, but they have become increasingly common for blue-collar work such as manufacturing jobs, construction and janitorial work.

Our labor and employment laws have not kept up with this changing reality of work.  But in a 3-2 decision issued last week, the National Labor Relations Board has revised its joint employment standard to reflect the reality of these new employment relationships.  In a statement released last week by the NLRB, they explained:

“The revised standard is designed ‘to better effectuate the purposes of the Act in the current economic landscape.’  With more than 2.87 million of the nation’s workers employed through temporary agencies in August 2014, the Board held that its previous joint employer standard has failed to keep pace with changes in the workplace and economic circumstances.”

The decision addressed the question of who were the employers of temporary staffing company workers and concluded that both the staffing company and the staffing company’s client where the workers were placed had sufficient control over the employees to be considered joint employers.  This is a victory for the workers and union involved because it means that the workers have a protected right to bargain with the larger company that controls the terms of their employment and not just with the staffing company.

It is also a victory for workers more broadly.  The growth of contingent employment has reduced the ability of workers to collectively bargain because layers of intermediaries have separated workers from the company that actually has power over their working conditions.  This decision — if it is not overturned when it is inevitably appealed– removes one incentive for employers to use labor intermediaries in order to avoid liability and restores a little bit of power to the workers.

Commentary, NC Budget and Tax Center, Raising the Bar 2015

Editor’s note: The following post by Jeremy Sprinkle, communications director at the NC State AFL-CIO, is the latest installment in “Raising the Bar” — a new series of essays and blog posts authored by North Carolina leaders highlighting ways in which North Carolina public investments are falling short and where and how they can be improved. 

No one wants North Carolina to have a strong economy more than its workers, who want to be able to work and to earn enough to support their families. Our state budget includes vital investments in supporting our current and future workforce, for example through workforce development, re-employment support and early childhood education, and our K-12 public school system. We know that making investments in these areas ultimately benefits all workers, families and our economy.

Unfortunately, legislative leadership in North Carolina has not pursued a path of investing in our workers and future workforce, but instead implemented a costly tax plan passed in 2013 that bleeds the state of much needed revenue for workforce development and training and innovative, proven initiatives that would create good-paying jobs in our state. The plan they passed gave big tax cuts mostly to profitable corporations and individuals at the very top of the income scale. Legislators based the pursuit of this strategy on a theory that tax cuts lead to higher job creation. However prior experience and research tells us that tax cuts don’t create jobs and they don’t grow the economy.

The 2013 tax cuts haven’t fixed the labor market despite disproportionately going to so-called “job creators” – the wealthiest North Carolinians and profitable major corporations.

As billionaire venture capitalist Nick Hanauer has said, if it was true that tax cuts for the rich created jobs, we would be drowning in jobs — but we’re not.

There are more people looking for work today than before the recession, and many of the jobs out there are low-wage jobs that don’t pay enough to support families or to reverse the decline of our middle class.

In fact, adjusting for inflation, an hour’s work today actually buys less than it did in 2007. Another tax cut isn’t going to fix that.

The way to raise wages and fix the labor market is by investing in our workforce and by empowering more workers to engage in collective bargaining to turn low-wage jobs into good jobs.

Policymakers have for too long asked working families to pay more and settle for less.

The 2013 tax cuts for the wealthy forced the state to slash programs that would have helped workers recover from the recession and rebuild their lives.

Workforce development, reemployment services, child care subsidies, and the Earned Income Tax Credit have all been cut or eliminated. Meanwhile, the cost of job training at community colleges or of pursuing a higher education is more expensive than ever.

Workers are consumers, and that makes us the real job creators in our economy. There aren’t enough wealthy people to make up for the declining buying power of North Carolina’s workers, and another tax cut for the rich won’t change that.

If lawmakers want to create jobs, they need to invest in workers, and investment takes revenue, revenue that is lost by cutting taxes.

And if they want to do something meaningful to put more money into workers’ pockets, they’d be better off encouraging workers to form unions and bargain collectively than by doubling down on the failed ideology that tax cuts are some sort of cure-all that past experience and common sense tell us just isn’t true.



McDonald’s announced Wednesday that it would raise wages for its corporate employees by an average of 10% in July. The bottom line: because the announcement only impacts employees in corporate-run restaurants, the increase would leave a whopping 90% of the chain’s nearly 900,000 workers out in the cold.

The move was widely panned by workers and labor advocates as a desperate response to the rapidly growing movement for an increased minimum wage, led by groups like RaiseUP for 15. One Charlotte-area McDonald’s employee summarized the situation perfectly:

“Because we joined together and stood up, McDonald’s was forced to raise pay,” said Brooks, who works at a Charlotte, North Carolina McDonald’s making $7.25 an hour. “Still, this is too little to make a real difference, and covers only a fraction of workers. It’s a weak move for a company that made $5.6 billion in profits last year. We’re going to keep fighting until we win $15 and union rights for all fast-food workers and our families.”

Raising wages is good for workers, businesses and the economy. Bigger paychecks help workers make ends meet and spend more at local businesses. In turn, businesses see more customers, better sales and lower employee absenteeism and turnover. It’s a virtuous cycle that promotes an economy benefitting everyone in North Carolina, not just out-of-state corporate executives and shareholders.

Minimum wage workers, faith communities, labor leaders and supporters from across NC will gather in Raleigh on April 15 as part of a National Day of Action in support of an increased minimum wage and the right to organize. Check out RaiseUP for 15’s Facebook page for details on the rally.


UnknownAt a meeting held yesterday, two members of the British Parliament, Ian Lavery and James Sheridan, released their fact-finding report about the conditions of farmworkers working in North Carolina tobacco fields.

The report, A Smokescreen for Slavery: Human Rights Abuses in UK Supply Chain, exposes a horrific list of human rights violations including child labor by children as young as seven, substandard housing with no ventilation and bug infested mattresses, and exploitation of workers by having them work inhumane hours for very little pay. Other areas of concern identified by the report include a lack of access to clean drinking water for workers and a lack of protective clothing to prevent infection from pesticides and even from the tobacco plant itself. The report also explains that some of the inhumane living and working conditions are permitted by lax labor standards. For example, under North Carolina law, it is legal for thirty men to share two toilets with no dividers. Read More

News, The State of Working North Carolina
MaryBe McMillan

MaryBe McMillan of the N.C. AFL-CIO answers questions from some of the reporters in attendance prior to this morning’s rally in Raleigh.

About a hundred people gathered next to the Fallen Firefighters Memorial in downtown Raleigh this morning for a rally/press conference to help kick off a three-stop “#TalkUnion” tour that is being by state union and civil rights leaders. The tour will also feature a noon event in Greensboro at the Beloved Community Center at 417 Arlington Street and conclude with a 5:30 p.m. rally in Charlotte’s Marshall Park at 800 east 3rd Street. All are invited.

The event in Raleigh featured Rev. William Barber of the North Carolina NAACP and state AFL-CIO Secretary-Treasurer MaryBe McMillan as well as rank and file workers and leaders from the local faith community.  All spoke of the desperate need in North Carolina to raise wages for average workers and to halt and reverse the conservative policy agenda of the state’s current political leadership.

The claims of the various speakers were boosted this morning by the release of the latest “State of Working North Carolina” report by experts at the North Carolina Justice Center.

This is from a release that accompanied the new report:

  • Almost six out of every 10 new jobs created since the end of the recession are in industries that pay poverty-level wages, keeping workers trapped in poverty even when they are working full-time.
  • The growth in low-wage work is disproportionately impacting workers of color and women: 13.2 percent of women, 13.5 percent of African-Americans, and 23 percent of Latinos earn below the living income standard, compared to 9.7 percent of men and 9 percent of whites.
  • The persistence of higher unemployment rates for African-Americans is in part being driven by the greater labor force resiliency of African-American workers. Since the recession, African-Americans have not dropped out of the labor force at the same level as white workers.
  • There are approximately 260,000 North Carolina working families who live in poverty, with 12.8 percent of working families earning poverty wages.
  • 13 of 14 metro areas saw labor forces decline since June 2013. For eight metros, the decline in unemployment was driven by the unemployed moving out of the labor force rather into jobs.
  • Rural employment dropped 2.7 percent since the start of the recovery while the state’s large metropolitan areas have seen 6.5 percent job growth.

These data coincided neatly with Rev. Barber’s statement in announcing today’s tour in which he noted:

“While we honor our workers on Labor Day, we cannot ignore the policies and laws passed down from this North Carolina General Assembly that are attacking poor and working families. We believe North Carolinians who work 40 hours each week should be able to put food on their tables and buy school clothes for their children. The long fight for labor rights, for voting rights, for educational equality and for quality health care for all is not a fight between Republican and Democrat. It is a moral fight for the soul of the nation. That is why we are making this Labor Day a Moral Monday.”

Click here for more information on the #TalkUnion tour.”

Click here to read the entire “State of Working North Carolina” report.