What is Community Labor United

1
What is Community Labor United?

• A long-term strategic partnership between
  Boston-area labor unions and the regions
  progressive community organizations working in
  different sectors
• United to mobilize our community members and
  unions to win concrete improvements and to build
  power for working families in the Greater Boston
  region
• Dedicated to a combined program of coalition
  building, research, policy development and
  grassroots mobilization

2
CLU Mission

• To protect and promote the interests of low and
  moderate income persons in the Greater Boston
  region through joint organizing campaigns.
• To build regional power through work that is
  rooted in the principles of equitable
  development, economic justice, the protection of
  the right to organize for workers, tenants and
  communities.
• To actively contribute to the broad-based social
  movement for systemic economic and social change.
• To dedicate its efforts to creating a new
  political power center in Greater Boston region
  that directly competes with the existing strength
  of the corporate community.

3
The Hourglass Challenge Creating a More
Equitable Economy for Greater Boston

• The Changing Face of Greater Boston A
  Demographic Profile
• The Hourglass Economy and Its Implications for
  Equitable Regional Growth
• Vital Signs A Snapshot of Housing, Health,
  Transportation, and Education
• Next Steps Toward Building an Equitable Regional
  Economy in Greater Boston

4
The Changing Face of Greater Boston A
Demographic Profile

• 4.4 million people live in the Greater Boston
  area
• The city of Boston is now majority minority
  with over 50 people of color
• Since 1980 the Latino population has more than
  doubled and the Asian population has increased
  five-fold
• Brazilians account for 1 in every 5 immigrants
• Seniors (55 and up) represent almost 20 of the
  population
• 75 of Boston residents between the ages of 14
  and 17 are Black, Asian or Latino

5
A Tale of Two Cities GrowingIncome and Wealth
Inequality

• Today, a wealthy family has the income of seven
  poor families
• A typical household today makes less money than
  in 1989
• People who are in the top 20 and already
  considered wealthy saw their income increase by
  more than 20
• People whose income is already below the poverty
  line saw their income decrease by 2

6
The Hourglass Economy
During the past three decades, the economy of
Greater Boston has steadily shifted away from a
manufacturing base towards service jobs. The
result of this shift is the emergence of an
'hourglass' economy, with large numbers of
low-wage jobs at one end of the spectrum and
high-wage jobs at the other, but few
opportunities in the middle.
High-Wage Jobs
Low-Wage Jobs
7
Boston Losing Good Jobs
12 Largest Employment Sectors--City of Boston 2003

• Steady erosion of good jobs that pay high
  wages, offer union security and benefits
• Service sector jobs traditionally non-union
• Good jobs found in manufacturing and the public
  sector due to union organizing

8
The Hourglass Economy
9
It Pays to Be in a Union

• Across all workers, occupations and sectors in
  the U.S., union members earn 28 more in wages
  than non-union employees
• 52 of blue-collar workers in union shops earn
  15.00 or more per hour, but only 17 of
  non-union workers make that much
• 30 of service workers in union shops earn 15.00
  or more per hour, but only 15 of non-union
  workers make that much
• In terms of total compensation (health care and
  retirement benefits), union members earn just
  over 30 more than non-union employees

10
Fewer Manufacturing Jobs and More Low-Wage
Service Sector Jobs

• In the 1980s and 1990s, Suffolk County lost 47
  percent of its manufacturing jobs and Middlesex
  County lost 75,000 manufacturing jobs
• During that same period, Suffolk County added
  85,000 service sector jobs and Middlesex County
  added 190,000 service sector jobs
• 71 of Bostons projected new jobs through 2008
  will be in service industries

Service Sector 10
Manufacturing 8
11
Low-Wage Occupations Largest and Growing Fast

• 12 of the 15 largest occupations in Massachusetts
  pay wages below 15 per hour
• Together these occupations make up more than 25
  of Massachusetts total employment.
• Most of these low-wage occupations have grown
  fast in the past decade
• Many are projected to be among the states
  fastest growing occupations through 2010.

12
The Hidden Leading Sector Non-Profit
Institutions

• Statewide, non-profits employ over 13 of the
  workforce
• Healthcare and Social Assistance is Bostons
  single largest employer
• Education is the citys 6th largest employment
  sector
• The areas largest hospitals generate revenue
  that rival many corporations

13
A Temporary Town The Growth of Contingent
Employment in Boston

• Q What does contingent mean?
• A Part-time, no job security, less pay and less
  or no benefits.
• For example
• Full-time contingent workers earned only 77 of
  what full-time workers make
• Only 1/5 of contingent workers had health
  insurance from their employer, while 1/3 of
  non-contingent workers had some kind of health
  insurance
• Between 1983 and 1999, the number of workers in
  Suffolk County employed by temporary staffing
  agencies increased by 165

14
Boston Underground Misclassification and Beyond
The Informal Economy
Employers save big money and make even bigger
profits

• 58,000 Massachusetts construction workers are
  misclassified by their employers as independent
  contractors
• 13-19 of all employers engage in
  misclassification

Why?

• Dont pay payroll tax on earnings
• Dont pay standard wages
• Dont cover workers with unemployment insurance
• Dont pay workers compensation for injuries

15
The Rising Cost of Living

• According to the Economic Policy Institute,
  Boston is now the most expensive metropolitan
  area in the country, more expensive than even New
  York City
• EPI calculates that the annual income a 2
  parent/2 kid family needs to meet basic needs in
  Boston is 64,656. New York is 58,656 and San
  Francisco is 57,624.
• Housing prices have gone up faster than wages
• 25 of all families in Massachusetts, and nearly
  50 of urban families, do not earn enough to meet
  their basic needs.

16
Income
On average, across race and education level,
women earn 50 less than men

• Median household income 39,629
• By race
• White 47,668
• Blacks 30,447
• Asians 27,963
• Latinos 27,141

17
Poverty

• During 2004-2005, almost three-quarters, or 74,
  of all students in Boston public schools
  qualified for free or reduced lunch.
• According to the U.S. Census, the poverty rate
  for Massachusetts in 2005 was 10.3.
• According to a MassINC report, 15.9 of
  immigrants were poor in 2000.

18
Unemployment

• The REPORTED unemployment rate is approximately
  5, but this figure does not consider those who
  are discouraged from looking for work.
• Although Boston is now a 'majority minority'
  city, whites still make up the bulk of the
  metropolitan workforce.
• As of 2004 the city's workforce was 85 percent
  non-Latino white.
• Unemployment rates in 2000 for blacks and Latinos
  more than doubled that of whites, with Asian
  rates somewhat higher than that of whites

19
Housing Costs
In the past 25 years, the average price of
housing in the Commonwealth has increased more
than in any other state
Rental Costs
Home Ownership

• Boston rental housing costs rose 60 in only 5
  years--from 1998 to 2003
• 3/4 of low-wage working families spend more than
  1/3 of their income on housing
• A minimum wage earner (earning 7.50 per hour)
  can afford monthly rent of no more than 360
• a full-time worker in Boston would need to earn
  an hourly wage of 27.58 in order to be able to
  pay the fair market value for a two-bedroom
  apartment according to HUD.

• In 2005, the median priced single-family home in
  Boston cost 394,874--this means over 79 of
  families in Boston could not afford to purchase a
  home.
• A projected 15,600 units are needed to meet
  housing demand annually
• Affordable units constructed for those making 80
  percent or less of median income is less than
  half of what is needed

20
Hunger and Health Care

• According to the Massachusetts Division of Health
  Care Finance and Policy, 7.8 of Boston residents
  had no health insurance in 2004.
• Low-income residents earning up to 300 of the
  federal poverty level will have to spend between
  30 and 140 a month to buy health coverage under
  the state's new mandatory insurance law
• Nearly 1 in 4 people receiving food support were
  actually working

21
Transportation

• Today, transportation is the second largest
  household expense category after housing
• The average household income in the Greater
  Boston area spends 7,175 on transportation per
  household
• Households under the poverty level spend almost
  40 of their household income on transportation
• From 1990 to 2003, fares for subway and bus
  increased much faster than the cost-of-living,
  and even faster than the price of gasoline.
• The average public transit commuter in
  Massachusetts spends 40 minutes on the bus or
  subway

22
Working Together with CLU

• Equitable Distribution of Public Revenues
• Negotiating Community Benefits Directly with
  Developers
• Increasing Public Participation in the
  Decision-Making Process
• Planning and Zoning Reform
• Wage Standards
• Lowering Barriers to Unionization