A new report showed income inequality in Wisconsin is declining as lower-wage workers are seeing faster wage growth but Black, Latino and women workers still lag behind.

A study by the High Road Strategy Center at the University of Wisconsin-Madison found the state's job market hit record levels in the second quarter and the inflation-adjusted median hourly wage has increased by 97 cents.

Laura Dresser, associate director of the High Road Strategy Center at the University of Wisconsin Madison and the report's co-author, said the increase in the median wage is just making up for the period inflation ran ahead of earnings in 2022.

"In these last five years, lower-wage workers have seen their wages go up by 8%," Dresser reported. "In terms of purchasing power, real value, and high-wage workers have only had wages go up about 1%."

The State of Working Wisconsin 2024 report noted the number of jobs in Wisconsin has topped 3 million and unemployment remained steady at 3%. The study also found the rate of unionized workers in Wisconsin dropped by one-third between 2011 and 2023, the steepest decline in union membership across the Midwest region.

Despite the increase in wages, the report said significant wage gaps remain between white men and workers who are Black, Latino or female. Dresser pointed out Latinos earn about 33% less, Black workers make 25% less, and white women's pay lags 16% behind in the workplace.

"When you focus on improving the quality of jobs, especially at the bottom of the labor market, you also are looking to close racial and gender gaps in wages," Dresser explained. "Because it is Black and brown and women workers who are dominant in lower-wage jobs."

The report made some recommendations for Wisconsin lawmakers. It suggested raising the minimum wage from $7.25 to $15 an hour to help close the pay gap, rolling back the state's so-called "right to work" laws to restore union rights and increasing investments in child care and education to provide relief for families and employers.


get more stories like this via email

Despite a changing of the guard, Connecticut home health care workers still face payroll issues.

Personal care attendants dealt with late paychecks and pay errors with little response when the state worked with Allied Community Services.

Cynthia Johnson, a personal care assistant and member of the Service Employees International Union Local 1199 New England, cares for her daughter who has a rare seizure disorder and said payday delays were agonizing.

"Even though you turned in the paperwork that they wanted from you, you still had to hold your breath that Friday to make sure you got paid," Johnson recounted. "Sometimes we would get a notice from them saying, 'We'll be paying everybody at 5 p.m. instead of the direct deposit.'"

Though the state's Department of Social Service has since switched payroll contractors to GT Independence, some issues remain.

Johnson feels the new contractor is an improvement since she does not have to worry about getting paid on Friday. Given SEIU Local 1199NE has more than 12,000 members, some problems were expected, though Johnson and others hope they will not linger.

Along with the stress of worrying about money, the payroll problems home health care workers face affect their ability to care for people.

Jonathan Stakley, another personal care assistant and SEIU member, cares for his brother with Down syndrome and said tracking down Allied to deal with payroll issues cost him time when he needs to provide care.

"Dealing with my brother can be a challenge and I want to make sure I can give him all my attention," Stakley emphasized. "The other time, I have something hanging over my head like a storm; maybe not getting paid on time and having to deal with the chaos of getting a hold of somebody that still may not be able to rectify the problem in a timely manner."

Recently, some Connecticut consumers received emails stating their personal care attendants would not be paid due to questions about unresolved Medicaid eligibility. The union worked with the state to ensure all workers got paid.

Diedre Murch, home care director and vice president, SEIU Local 1199NE, said the union wants a better relationship with GT Independence and added some ways to do it include advance notice when Medicaid eligibility problems could disrupt services.

"It shouldn't take 4 months of requesting a meeting on a systemic problem to be able to speak to them directly," Murch argued. "Secondly, getting the local call center up and functional (with) people who are trained in contractual benefits and wages."


get more stories like this via email

As a federal judge considers a lawsuit aiming to block a proposed $25 billion merger between Kroger and Albertsons, a new report detailed how skyrocketing grocery store prices are linked to record profits and a lack of competition between a shrinking number of corporations dominating the nation's food system.

Rakeen Mabud, chief economist for the Groundwork Collaborative, the Washington, D.C.-based think tank behind the report, said fewer competitors in the industry can lead to price gouging.

"There are only a few companies that control big chunks of entire supply chains that get food to grocery stores," Mabud pointed out. "That consolidation, the fact that there are only a few companies that really control the supply chain, facilitates price gouging and profiteering."

The report recommended expanding laws banning price gouging nationwide. Statutes are already at work in 40 states including Louisiana, Tennessee and Texas. It also called for limiting mergers reducing competition. Grocers have blamed rising prices on the pandemic and other supply-chain disruptions. Kroger has also argued the proposed merger would help bring down prices, benefit workers and allow them to compete with companies such as Amazon and Walmart.

Mabud pointed to comments made by Kroger and other supermarket executives to shareholders admitting inflation was good for boosting profits. She added cargo ships, railroads and trucks are all owned by just a handful of firms.

"Our supply chain was built to maximize profits for giant corporations that control it," Mabud contended. "It was not built to maximize efficient delivery of goods."

If approved, the merger would create a virtual monopoly in places like Gunnison, whose 6,000 residents would have to travel 65 miles to find a grocery store not owned by Kroger. Mabud noted health care, housing and education costs have also been on the rise for decades.

"The conversation around grocery prices is really part and parcel of a broader set of power dynamics that we need to disrupt," Mabud argued. "And that problem is that big corporations have way too much power, and everyday people have too little."


get more stories like this via email

A newly enacted law provides New York freelancers with labor protections.

The "Freelance Isn't Free Act" prevents companies from not paying freelancers. The law requires a contract between freelancers and clients for any work valued at $800 or more. It also requires clients to pay freelancers by the contract's due date or within 30 days of work completion if no date is specified.

Rafael Espinal, executive director of the Freelancers Union, said the law has been needed for a long time.

"We've found that freelancers, on average, lose about $6,000 a year because of nonpaying clients," Espinal reported. "We know, in a state like New York, $6,000 goes a long way in being able to keep up with the cost of living and being able to pay their bills like their rent, utilities, putting food on the table."

Freelancers have provided positive feedback on the law but it faced hurdles before passing in late 2023. Some companies expressed compliance concerns about larger businesses' interactions with freelancers. Gov. Kathy Hochul initially vetoed the bill. At first, enforcing the bill went to the Department of Labor but the passed version puts the responsibility on the Attorney General's office.

Before the bill passed, Espinal advised freelancers about how to make contracts bulletproof so they were guaranteed payment. Some steps involve stipulations ensuring payment at milestone periods of a job and net payment terms. Espinal noted the new law expands what is considered a written agreement to protect freelancers further.

"The law really captures all written agreements and considers them to be contracts," Espinal explained. "It could be anything as simple as a text message, outlining the work with the payment terms. It can be an email, it doesn't necessarily have to be a traditional contract on legal paper."

This bill was modeled after New York City's own "Freelance Isn't Free" law. Aside from New York, Kansas, Missouri and Los Angeles have similar protections for freelancers.