DENVER - The number of jobs that don't pay full-time workers enough to get by are on the rise in Colorado, according to a new report. About 600,000 Coloradans earn less than $12 an hour, a wage that would put a family of four just above the federal poverty line.
Chris Stiffler, economist with the Colorado Fiscal Institute, says when workers aren't paid a living wage, taxpayers are left on the hook to cover public assistance programs such as health care and food stamps.
"This basically is a free ride for employers, large employers particularly, who are basically able to export their benefits onto the taxpayer," says Stiffler.
Of the $1.7 billion Colorado spent on Medicaid in 2014, $304 million went to covering low-wage workers or their children. Stiffler says that's money that could have been allocated to schools, child protective services, transportation and other state priorities.
The report also found that most low-wage earners are adults, not teenagers; only 15 percent are under age 20. Stiffler points out that low-paying work, like retail, personal-care aides and food preparation, makes up a growing portion of Colorado's overall economy, up from 23.7 percent in 2001 to 26.2 percent in 2013.
"You particularly see a lot more jobs in the retail sector and the restaurant industry in Colorado," says Stiffler. "Whereas other jobs that typically pay higher wages, like manufacturing jobs and construction jobs, we've seen those number of jobs shrink over the past several decades."
From 2000 to 2013, despite a 20 percent increase in worker productivity, the bottom fifth of Colorado's wage earners saw their pay drop by 8 percent when adjusted for inflation. Stiffler adds, women and people of color are more likely to be employed in low-wage jobs.
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Labor analysts say doctors have jumped to the front of the line of healthcare workers forming unions while others in the medical field continue to show interest, including nurses at a hospital in the North Dakota region.
Nurses at the CHI St. Francis Health Breckenridge hospital along the border with Minnesota now have a collective bargaining unit.
Connie Okeson, a registered nurse at the hospital, said she hopes voting to form a union allows her team to illustrate staffing issues. She emphasized they have to fight to make health facilities in smaller towns and cities desirable places to work.
"A lot of new nurses, they're not interested in working in small towns because we don't have all the things they want to do in a hospital," Okeson pointed out. "It's more low-key. But I'm hoping by doing this that we can bring those ancillary services back. And then, maybe more nurses will want to work at St. Francis."
CHI leaders could not be reached for comment. Since coming out of the pandemic, labor organizing in health care has gained a bigger following. Nurses were among those leading the charge, but the Journal of the American Medical Association said the movement has caught on with physicians. Doctors led nearly 30 union drives the past two years, well above yearly averages the past two decades.
St. Francis Breckenridge is a 25-bed critical access hospital serving a handful of communities. Corporate consolidation remains a force within health care and Okeson noted nurses want to be part of the wave giving workers at not-so-big facilities a bigger voice.
"I'm hoping it opens it up for (workers at) other small hospitals to do the same," Okeson stressed.
She added having more input can improve patient care, aiding the reputation of small-town hospitals and making sure they stay on as a key employer for these communities. Negotiations involving her colleagues are expected to begin within the next six to eight weeks.
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The U.S. Department of Labor is holding $6.8 million in unpaid wages for more than 5,000 Maryland workers, and said time is running out to claim the wages.
The Labor Department enforces the Fair Labor Standards Act, which includes regulations for minimum wage, overtime pay, record-keeping and youth employment.
A new study labeled Maryland the worst state for wage theft, with more than $2,200 of back wages per employee.
Nick Fiorello, wage and hour division district director at the Baltimore office of the Labor Department, said they may investigate a complaint from a worker or third party but they also look into specific industries considered common wage-theft culprits.
"Low-wage industries; construction industry, residential home-care industry, restaurants, food service industry, landscaping," Fiorello outlined. "Sometimes we're just initiating investigations out of one of those priorities that has nothing to do with a complaint."
Workers can see if they are owed unpaid wages by going to the Department of Labor's database, called Workers Owed Wages. There, workers can look for their employer and their own name to see if they are owed unpaid wages.
The $6.8 million is a drop in the bucket of total unpaid wages in Maryland. One study from the Center for Popular Democracy estimates nearly 600,000 Marylanders are cheated out of wages each year, totaling nearly $900 million a year.
Fiorello stressed it is important to let people know about the millions in unpaid wages because time could be running out for some people to collect. He added the Department of Labor legally can only hold unpaid wages for so long.
"We keep the money for up to three years and unfortunately, we have to pass it along to Treasury after that," Fiorello pointed out. "The workers do have a short time period in order to claim the money, so that's why we want to make sure folks understand that there's this website that exists that they can check out and see if they are owed some money."
A study from the Economic Policy Institute found nationally, workers lose out on $15 billion in wages just from minimum wage violations.
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A Pennsylvania environmental justice group is voicing concerns about the blocked sale of U.S. Steel to Nippon Steel, citing its effect on the community and jobs if it ultimately goes through.
On Monday, Nippon Steel and U.S. Steel filed a lawsuit challenging the Biden administration over the decision.
Matthew Mehalik, executive director of the Pittsburgh-based nonprofit Breathe Project, said Nippon's bid would not have benefited union workers or the community, as it did not include a long-term plan for helping the Mon Valley. He added Nippon said they would honor all collective bargaining agreements, but the union contract expires in 2026.
"If you look at the big picture, really what Nippon wants is the Big River Steel, brand new electric arc nonunion facilities in Arkansas that U.S. Steel spent over $4 billion over the past couple years purchasing and building up as a threat to deunionize U.S. Steel."
Mehalik noted Nippon Steel's $1 billion Mon Valley investment pledge lacked detail, only specifying a new hot strip mill at Irvin Works, one of the three components of the Mon Valley Works along the Monongahela River. For its part, Nippon Steel said it has committed to preserving jobs, the U.S. Steel name and branding, and the Pittsburgh headquarters.
Mehalik argued Nippon's investment plan lacks specifics on how it will address the long-term health issues caused by decades of pollution in the community. He pointed out U.S. Steel has faced more than $65 million in fines and settlement agreements since 2020 due to Clean Air Act violations, primarily stemming from its Mon Valley facilities.
"The ongoing pollution that's been present for a long time in the Mon Valley; our county is in the top 1% of counties nationwide for cancer risk from toxic air pollution," Mehalik outlined. "The asthma rate in the communities is more than double the state average and the national average."
Mehalik noted carbon-based steelmaking faces a major shift as the steel industry transitions to decarbonization. Automakers are already seeking carbon-free steel, a growing market driving innovation in steel production. However, the Nippon deal includes no commitments to decarbonization and instead appears to reinforce fossil fuel-based steelmaking.
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