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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.

 

Commentary

Cherie Berry

It’s a brave new world in North Carolina, where worker fatalities don’t count unless the NC Department of Labor actually investigates them. The News and Observer’s piece yesterday documented another instance of NCDOL’s practice of distancing itself from addressing critical issues facing workers in our state. Last fall, Labor Commissioner Cherie Berry refused comment on how her department could help workers routinely cheated out of wages and benefits because of misclassification as independent contractors.

Now Berry’s office is playing down serious health and safety problems in workplaces across North Carolina by only reporting publicly on a fraction of the workplace fatalities that happen each year. Ironically, the worker misclassification problem that NCDOL didn’t want to discuss is integrally related to these underreported fatalities. The deaths of workers who have been improperly treated as independent contractors are not investigated, and therefore will not be reported on, by NCDOL.

Several legislators have taken note, including bipartisan sponsors of the Fair Competition and Employee Classification Act (SB 576), the Employee Fair Classification Act (SB 694), and the House’s Employee Fair Classification Act (HB 482). These bills propose a variety of reforms, including making misclassification illegal, authorizing action by licensing boards, and requiring notice to workers of their status and their rights. One common feature among all the bills is the desire for the Department of Labor to play a role in the investigation and enforcement of worker misclassification. Should that happen, the number of officially reported fatalities will doubtless rise. And at the same time, those workers will be covered by both worker’s compensation insurance and North Carolina’s Occupational Safety and Health Act, which states that “each employer shall furnish to each of his employees conditions of employment and a place of employment free from recognized hazards that are causing or are likely to cause death or serious injury or serious physical harm to his employees.”

Commentary

Cherie Berry 2It’s no secret that North Carolina state Labor Commissioner Cherie Berry has been doing the bidding of the state’s employer community for years. If there’s an important issue impacting the well-being of the state’s workers, you can always rest assured that Berry will either be: a) defending/making excuses  for employers or b) AWOL.

This latter description aptly summarizes Berry’s performance (or rather lack thereof) when it comes to the issue so thoroughly described in a recent series of Raleigh’s News & Observer: “Contract the cheat.”

Saturday’s editorial in the N&O neatly summarized the issue and Berry’s ongoing dereliction of her duties: Read More

Uncategorized

Moral MondaysWith today’s Moral Monday focusing on, among other things, the rights of workers in North Carolina, be sure to check out this essay from Saturday’s Raleigh News & Observer by NC AFL-CIO Secretary-Treasurer MaryBe McMillan. As McMillan notes:

“At what cost to the residents of this state do our lawmakers and our governor do the bidding of organized greed? A devastating coal ash spill fouls our waterways, and fracking threatens our water supply. Children as young as 12 work our tobacco fields. Jobless North Carolinians struggle to make ends meet on reduced and inadequate unemployment benefits. Teachers work without pay raises, textbooks and teaching assistants. Children, the aged and the disabled are being kicked off Medicaid while hundreds of thousands are left to get sick and die, caught up in a Medicaid blockade of lawmakers’ own making. Citizens are made to overcome obstacles in exercising their right to vote. Even our right to vote is under attack. If we stand by and do nothing, we are signing off on this moral bankruptcy. Read More

Uncategorized

A grand jury in Greensboro last week handed down a 41 count indictment against the owner and operator of a firm that brings in foreign workers for temporary agricultural and non-skilled jobs in North Carolina and around the Southeast.  According to WRAL, the indictment charges Craig Stanford Eury and Sarah Farrell of International Labor Management Corp. with submitting fraudulent visa applications in an attempt to evade caps on the number of workers who can enter the country on H-2B visas and moving workers on agricultural H-2A visas into non-agricultural H-2B positions.

Much has been written about the problems with the H-2B and H-2B programs.  The Southern Poverty Law Center’s seminal report, Close to Slavery, details the exploitation at the heart of a “guestworker” system which ties workers to a single employer and provides no way for them, many of whom leave families year after year to perform thankless work in the U.S., to ever create a permanent home here.  The unfair treatment of U.S. workers who don’t get a fair shake at these jobs are described in Farmworker Justice’s No Way to Treat a Guest.  Hopefully those messages will not get lost in stories about an indictment that focuses on sleight of hand tactics to game a system that is, at its core, patently unfair to the workers (immigrant and U.S. citizen workers alike) who just want to support themselves and their families.