HARTFORD, Conn. – With Connecticut set to raise the minimum wage to $15 an hour, labor organizers now are setting their sights on making further gains for low-wage workers.
Now that Gov. Ned Lamont has signed the legislation, Connecticut's minimum wage will go up to $11 an hour in October, and $15 in 2023.
But while organizers are celebrating that victory, they say there still is work to do to improve the lives of workers in the state.
Juan Hernandez, vice president of SEIU Local 32BJ, points out that fast food workers and other low-wage workers still need benefits such as regular work schedules, health insurance, paid sick days and paid family leave.
"The reality is that minimum wage is not a livable wage, and the only way that those workers will move to a livable wage is to organize the union," he states.
Hernandez says in the coming year, the coalition that advocated for the minimum wage increase will be pushing for health insurance for everyone who works 30 or more hours a week.
Hernandez notes that tip workers, such as waiters and bartenders, are paid less than the current minimum wage and were not included in the new minimum wage law.
"We feel that those workers should be making a minimum wage that is not $10.10 an hour, or in some cases less,” he stresses. “And we will be helping them bring the issue to the capital."
Hernandez adds that there is a national organization for tip workers that also may help restaurant servers and bartenders in Connecticut secure higher hourly wages.
Connecticut has one of the largest earnings and wealth gaps of any state in the nation.
Hernandez says the spending power unleashed by a raise in the minimum wage will make a big difference, especially in areas with higher concentrations of low-wage workers.
"The economy in cities like Hartford, Bridgeport, New Haven will be better because the majority of the 330,000 workers that will get a raise live in those cities," he states.
The increase will give an estimated $1.2 billion a year to Connecticut's lowest paid workers, money that will fuel local economic growth.
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The nation's billionaires have doubled their wealth over the past seven years, while working people in West Virginia and elsewhere continue to face economic struggles.
The collective fortune of America's more than eight hundred billionaires hit a record $5.8 trillion in April, according to a new report by Americans for Tax Fairness.
Gary Zuckett, executive director of the Citizen Action Education Fund, said the Mountain State is just beginning to see the ramifications of a deep income tax cut that was passed last year by state lawmakers.
He said the lack of funding has made it difficult to address steadily worsening problems.
"Like the child-care crisis in West Virginia, the corrections crisis - our prisons have been in the state of emergency for the last three or four years," said Zuckett. "There's a lot of things that we need to be using our tax money for, besides giving it to the rich in income tax cuts."
America's billionaires now own more than 50% more wealth than does the entire bottom half of the nation's households.
Under the current tax code, however, the staggering wealth gains made by the richest are unlikely to ever be taxed.
Trump-era tax benefits for the wealthy enacted in 2017 are set to expire at the end of 2025.
Zuckett explains that the laws cut the top income-tax rate from more than 39% to 37%, and cut the corporate tax rate from 35% to 21%.
"The mom and pop grocery stores and the people working in Walmart, everyday working people," said Zuckett, "pay taxes on every dollar that they earn, but the system is rigged to benefit people at the top."
According to the report, if the wealthiest Americans were taxed at the rate of average Americans, the nation would have new potential tax revenue of roughly $120 billion each year, which could help pay for more affordable and accessible health care.
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Michigan legislators are tackling predatory lending practices, aiming to set standards for payday loans and maximum interest rates.
In Kent County alone, with a payday loan volume of $60 million, the House Insurance and Financial Services Committee discussed Senate Bill 632, sponsored by Sen. Sarah Anthony, D-Lansing, which seeks to cap annual interest rates at 36% compared to current rates reaching nearly 400%.
The bill has passed the Senate and is part of a legislative effort including House Bill 5290, sponsored by Rep. Abraham Aiyash, D-Hamtramck.
Dallas Lenear, founder and executive director of Project GREEN, a grassroots economic empowerment network, highlighted concerns about the exploitative nature of these loans.
"Payday loans inevitably are designed in a fashion that is unaffordable for the majority of people who use those loans," Lenear contended.
Lenear pointed out many other states have already capped their interest rate or totally outlawed payday loans because of the financial damage they can cause their citizens and argued it is time for Michigan to do better.
Lenear noted while the payday loan industry believes it offers hope to borrowers in times of need, a study by project GREEN found 78% of respondents said payday loans either prolonged or worsened their financial situation.
"If they've had any experience with it, they'll start to shake their head and they'll say those things are terrible and I was caught in the trap and I would never use those things again. I'd use it out of desperation," Lenear reported.
Advocacy groups such as the Michigan League for Public Policy and the Michigan Catholic Conference testified in support of the bills, to end the predatory practices.
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A case before the U.S. Supreme Court could have implications for the country's growing labor movement. Justices will hear oral arguments in Starbucks versus McKinney today to determine if the bar should be raised for the National Labor Relations Board when it seeks to impose court-ordered injunctions on companies.
David Groves, communications director with the Washington State Labor Council, said the Supreme Court could further undermine the power of the NLRB, the independent federal agency that protects employees' rights.
"We already have weak labor laws in this country that have such minor penalties for breaking union organizing laws that companies routinely do it, and this is another opportunity for them to weaken labor laws even further," he argued.
The case involves Starbucks' firing of seven employees in Memphis during their union campaign in 2021. The coffee company says it rehired the workers and denies wrongdoing. If the justices rule in favor of Starbucks, it could make it harder for the NLRB to seek court orders.
Groves said the law states that workers have a right to organize unions in their workplace without coercion or retaliation from their employers.
"That's all fine and good but if the penalty's not significant enough, then they'll just go ahead and break that law and consider it the cost of doing business if they have to pay a fine two years down the road," he explained.
Groves said his and other labor organizations support the passage of the Protecting the Right to Organize or PRO Act in Congress, which would strengthen labor laws, including providing greater authority to the NLRB.
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