A new report on working in Ohio offers a mixed picture of labor in the state.
The annual State of Working Ohio report is out for 2022 and while researchers are highlighting the strong post-pandemic job recovery, workers still face challenges.
The report shows the state has recovered 85% of the jobs lost to COVID-19, which is three times faster than the recovery from the great recession 14 years ago. While this is good news, Michael Shields - a researcher with Policy Matters Ohio and the lead author of the report - offered a word of caution.
"There is a note of caution, that depending on how aggressively they push to reduce inflation, the Federal Reserve really could reverse this job growth," said Shields. "We could even see a recession, but generally we're seeing really good recovery."
Shields said the inflation over the last two years was kicked off by the pandemic, but corporate profits now make up over 50% of cost increases.
Over the last few decades many workers in Ohio have been forced to transition out of jobs in manufacturing and into lower wage sectors. The report indicates the state has lost over 700,000 manufacturing jobs since the 1970s.
Shields pointed to a decline in union representation as a major factor keeping wages flat since the '70s. He said that while there have been productivity gains in the workplace over those same decades, corporations and the wealthy have captured nearly all of the profits from those gains.
The report shows only 13% of Ohioans belong to a union and Shields said productivity gains are not enough.
"Productivity is not enough to ensure that everyone in Ohio is able to prosper," said Shields. "Broadly shared prosperity depends on more than productivity, it also depends on bargaining power. We have to make sure that working people have a voice at the table and are able to bargain for their share of the wealth that they're creating."
The report shows the median union wage is close to $5 per hour more than non-union workers.
Another challenge Ohio workers often face is wage theft, where employers don't pay for all hours worked. The report states that misclassification of workers as contractors is one form of wage theft, but Shields said it goes further.
"Employers steal from some 213,000 Ohioans through minimum wage non-payment alone," said Shields. "Now, minimum wage non-payment is not the only form of wage theft. There are other things like not paying time and a half for overtime. Things like not paying for all hours worked. Sometimes folks will work a short-term job and just never get their last paycheck."
Shields said Ohio does not have the investigative resources to address the scale of the wage theft problem in the state.
This story was produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.
get more stories like this via email
Michigan's tipped wage system is on the brink of extinction, with changes set to take effect next month after a state Supreme Court ruling last year mandated higher wages for tip-reliant workers.
The ruling will eliminate tipped wages below minimum wage and raise the state's minimum wage to more than $12 per hour.
Justin Winslow, president and CEO of the Michigan Restaurant and Lodging Association, said the almost 250% increase in the wages of tipped workers would be catastrophic and he said it is happening at the worst possible time, as inflation hits his industry more than others.
"You add that difficult environment to this new policy and you have the recipe for the loss of 60,000 restaurant jobs in Michigan and the closure of one in five full-service sit-down restaurants in Michigan," Winslow contended. "When I say catastrophic I think that's what we mean."
Supporters of the change argued it ensures fair pay and reduces income instability for tipped employees, who can face unpredictable earnings. Tipped wages are set to be phased out Feb. 21.
Winslow pointed out servers are currently earning around $30 an hour, with some making even more, all while enjoying flexible schedules. He emphasized roughly 80% of workers want to preserve the current system. On a positive note, Winslow noted bipartisan efforts are in motion, with similar bills from both parties set to be discussed in a hearing today, to protect tipped wages.
"The new House leadership seems to be making it a real priority to try to get something done in advance of February 21st, so we'll be front and center there making sure they understand and hear from the voices of impacted restaurant workers and restaurant owners."
The Michigan Restaurant and Lodging Association warned as many as 60,000 jobs could be in jeopardy if businesses are required to eliminate tipped wages.
get more stories like this via email
The faculty of a New York City music school is planning to strike after contract negotiations stalled.
The Manhattan School of Music's Precollege program faculty union has been negotiating a contract since June, and said it has been a protracted effort. The union wants a pay increase aligning with other schools such as Julliard and the Mannes School of Music.
Adam Kent, president of the union, said the school's low pay affects teachers' ability to work.
"There are, as the fall semester is ending, several teachers who are leaving altogether," Kent pointed out. "There are a number of teachers I speak to who tell me they used to teach 10-hour-long days, now they're down to a single student who will take lessons with them at their home instead of at the school."
While the school has said there's not enough money for the pay raise, tax filing data showed the school's president and executives received large pay increases in recent years. Other data noted the school's tuition has risen 58% since 2014.
In a statement, the school challenged many of the union's accusations about why negotiations have taken so long. While the union has been around for a decade, Kent emphasized contract negotiations have always been hard-fought battles.
The union has made concessions regarding the pay increase but Kent feels the school must do its part so the two parties can reach an equitable agreement. When negotiations began, union members gave the school the benefit of the doubt, adding the sentiment changed after reviewing the school's financial data.
"It's clear there's no reason they can't afford to pay us fairly," Kent asserted. "They've never made a claim of an inability to afford these raises at bargaining. Their response has been, 'We just don't have to.' They don't take us seriously. They feel why should we start paying more money for the same work we've had up until now."
Kent pointed out the pay raise is sought to match the cost of living in New York City. The union also wants to keep class sizes at reasonable levels and ensure teachers can easily access remote learning tools when needed through the next contract. A Change.org petition from the union has garnered close to 2,000 signatures.
get more stories like this via email
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.
get more stories like this via email