This week, a Minnesota Senate committee will consider a plan supporters said would make it easier for workers at small businesses to have retirement savings plans.
The bill follows concerns about a growing savings gap. The Minnesota Secure Choice Retirement Act would offer an automatic payroll deduction, with the collected retirement funds managed by a state board. Workers would have the option to be enrolled, and no employer contributions would be needed.
Cathy McLeer, state director of AARP Minnesota, which supports the proposal, said it would help those without a nest egg take control of their financial outlook as they age.
"We know that there've been declines and employer-sponsored pensions," McLeer pointed out. "We know that a lack of savings really impacts a person's ability to achieve that secure retirement."
AARP said nearly one-third of Minnesota workers do not have access to a retirement plan through their job. And more than 42% of Minnesota retirees rely on Social Security for half their income.
The proposal has been floated before. It is unclear how far it might go this session. Opposition in other states has centered around the impact on private-sector plan providers.
Bill supporters say this also can make small businesses more competitive, eliminating the costs to set up a retirement plan for staff.
Erik Forsberg, president and CEO of Overlord Hospitality, which operates a handful of restaurants in the Twin Cities, said it might result in not having to put so much time and energy into recruiting and retaining workers.
"Hiring and training and going through all that is expensive, in any industry," Forsberg observed. "When you get into our industry, and there's so much turnover, it can really add up."
Forsberg added many people can make a career in the hospitality sector, but have to weigh a lot of outside factors. He thinks putting retirement savings on their radar would be a huge plus.
"They have to focus on things like transportation and child care, but when it comes to actually planning for your future, that's not usually a part of their conversation," Forsberg explained.
Disclosure: AARP Minnesota contributes to our fund for reporting on Budget Policy & Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Starting next year, Michigan employers will need to pay workers more than $12 an hour, following a landmark ruling from the state Supreme Court.
The 4-to-3 decision reignited Michigan's 2018 ballot initiatives on the minimum wage and paid sick leave.
The wage will be $10 per hour, plus an adjustment for inflation since 2018. The ruling should mean higher pay for more than 800,000 workers in Michigan, including a 48% increase for tipped workers.
Saru Jayaraman, president of the advocacy group One Fair Wage, said her organization has been working for more than a decade to see this change in Michigan.
"By 2028, 1.2 million workers will get a raise," Jayaraman pointed out. "But it also means that Michigan becomes the first state in 40 years, and the first state east of the Mississippi, to end the subminimum wage for tipped workers, which is a direct legacy of slavery."
The head of Michigan's Restaurant and Lodging Association called the court decision "tone-deaf" In a statement, Justin Winslow said 40% of full-service restaurants in Michigan are already unprofitable and predicted the decision could force more of them to close permanently, eliminating up to 60,000 jobs.
However, other states are following suit. Jayaraman pointed out states with pending legislation to raise their minimum wages include Colorado, Illinois, Maryland, Massachusetts and Ohio.
"In total, we actually have this moving right now in a dozen states around the country," Jayaraman observed. "But Michigan is the first, the first to go."
The ruling also paves the way for extensive changes in worker compensation and benefits in Michigan. Those will not take effect until late February next year. In the meantime, Jayaraman added her group is also advocating for an increase in the federal minimum wage, which has been $7.25 an hour since 2009.
get more stories like this via email
Labor leaders in Maine say the approved construction of the world's largest energy storage system will also create quality union jobs.
The project will convert the former mill site in Lincoln, which closed in 2015, impacting hundreds of workers.
Jason Shedlock, president of the Maine Building and Construction Trades Council, said the project's labor agreements already in place ensure a well-trained workforce will earn a living wage.
"That money can be put back into the economy," said Shedlock, "and oh, by the way, we're also doing our part to reverse climate change with many of these green economy jobs."
Shedlock said the Biden administration's Bipartisan Infrastructure Law is funding the project to strengthen New England's electric grid. He said the 85 megawatt system could serve up to 85,000 homes.
New England states will get nearly $400 million for regional electric infrastructure to support higher loads of renewable power, including up to 4,800 megawatts of additional offshore wind energy.
The investments aim to help improve grid reliability during peak demand times and increase resilience against extreme weather.
Shedlock said the region's clean energy transition must also include strong labor standards.
"The words just transition needs to actually mean something," said Shedlock, "and governmental entities need to take it seriously because we have the workers that have the skills."
Shedlock said it's important workers also have a chance to pass on those skills to the next generation through apprenticeship programs.
With Maine getting nearly $3 billion to strengthen infrastructure against the growing threat of climate change, he said the labor opportunities are endless.
get more stories like this via email
Voters in November will decide whether Oregon cannabis workers are allowed to unionize.
Measure 119 is the last initiative to qualify for the ballot in Oregon. Workers in the cannabis sector do not currently have the option to unionize.
Miles Eshaia, communications coordinator for the United Food and Commercial Workers Local 555, said it is an oversight from the initiative in 2014 legalizing marijuana for recreational use.
"One of the things that it didn't do was set up the necessary protections for workers," Eshaia pointed out. "States like New Jersey, California, New York, when they legalized marijuana at the state level, they added a pass for worker protections and Oregon simply doesn't."
The union pushed for a fix from lawmakers in Salem last year but it ultimately failed. Supporters of Measure 119 submitted more than 163,000 signatures for the initiative in July, well over the 117,000 needed to qualify. Opponents said the measure violates federal labor law.
Eshaia argued the industry needs to be brought out of the dark and offered greater protections than those provided by the state labor agency.
"Something that's rampant in the industry is toxic chemicals, unchecked safety concerns and lack of proper PPE," Eshaia contended. "Employers often cut corners. They compromise both worker and consumer safety, and you can avoid all that with a collectively bargained agreement and a collectively bargained safety agreement."
Eshaia stressed organizing the workplace without interference is a right.
"Workers across every industry should have the absolute freedom to unionize if they so choose," Eshaia emphasized. "What this ballot measure really does is just closes an old loophole that deprives certain workers, thousands of workers, from that right."
get more stories like this via email