A presentation on work, wages and economic inequality in Louisiana. Shared at the Together Louisiana Statewide Issues Conference on February 15th, 2014.

1. +
Work & Wages in Louisiana
Civic Academy
February 15, 2014

2. +
Our Purpose
 To
discuss what our faith traditions teach on work
and wages.
 To discuss
important trends in Louisiana:
--on wages
--on economic inequality
--on the “Big Disconnect”
 To discuss
what we can do about it:
-- Legislative solutions focusing on 2014

3. +
What do our faith traditions say
about work and wages?
(Just a few examples)

4. +
Presbyterian Church
We celebrate the full humanity of each woman, man, and child, all
created in the divine image as individuals of infinite worth, by
working for:

Employment for all, at a family-sustaining living wage, with equal pay
for comparable work.

The rights of workers to organize, and to share in workplace decisions
and productivity growth.

Protection from dangerous working conditions, with time and
benefits to enable full family life.
Presbyterian Church USA, “A Social Creed for the 21st Century

5. +
Catholic Church
“A just wage is the concrete means of verifying the whole socioeconomic
system and, in any case, of checking that it is functioning justly.”
On Human Work, Papal Encyclical of Pope John Paul II
“[T]oday we also have to say ‘thou shalt not’ to an economy of exclusion and
inequality. Such an economy kills.”
No to an Economy of Exclusion, Apostolic Exhortation of Pope Francis
"Employers are obligated to treat their employees as persons, paying them fair
wages in exchange for the work done and establishing conditions and patterns
of work that are truly human.”
“Unequal power may press workers into a choice between an inadequate wage
and no wage at all. But justice, not charity, demands certain minimum
guarantees. The provision of wages and other benefits sufficient to support a
family in dignity is a basic necessity to prevent this exploitation of workers.”
US Conference of Catholic Bishops, "Economic Justice for All: Pastoral Letter on
Catholic Social Teaching and the U. S. Economy“

6. +
United Methodist Church
“Every person has the right to a job at a living wage. Where
the private sector cannot or does not provide jobs or all who
seek and need them, it is the responsibility of government to
provide for the creation of such jobs.”
Social Principles of the United Methodist Church
Judaism
"Government should set a community standard for wages;
people working for the government, directly or indirectly,
should not be paid sub-poverty wages... Only employing
those who will work for sub-standard wages decreases the
quality and motivation of the workforce.“
Central Conference of American Rabbis (1999)

7. +
Scripture
“I will be swift to bear witness against those who oppress the
hired workers in their wages, the widow and the orphan.”
Malachi 3:5
“Listen! The wages of the laborers who mowed your fields,
which you kept back by fraud, cry out, and the cries of the
harvesters have reached the ears of the Lord of hosts.
James 5:4

8. +
What does your
tradition say?

9. +
What does our state say?
 NO
state minimum wage
 NO
state department of labor
 Right
to Work (for less)
 At-will
employment
 Economic
development that benefits
corporations with little accountability for creating
good jobs

10. +
What does it
cost to get by in
Baton Rouge?
According to Economic
Policy Institute “Family
Budget Calculator”,
for a family of 4,
about …
Source: www.epi.org/resources/budget/

11. +
Annual incomes
in Louisiana
Some families
are NOT
getting by
Middle 20%
are just
getting by
Some families
are doing great

12. +
Louisiana has the
6th highest income
inequality in the
nation

13. +
What’s driving increasing
inequality?
“The BIG
Disconnect”

14. +
“The Big Disconnect” is about
productivity and wages
1948 to 1979
Net productivity
up 106%
up 93%
Hourly compensation
(This is how we got 1979
ourselves a middle class.)
Between 1948 and 1979,
productivity (how much
workers produce) and
compensation (how much
those workers take home)
GREW TOGETHER.

15. +
Since 1979, workers’
productivity KEPT
INCREASING
1979 - 2013
but compensation
STAGNATED.
(This is how that middle
class stopped growing.)
1979

16. +
Translation: what this means in real
numbers.
 21%
of Louisianans live below the poverty line;
40% live below 200% of the poverty line (for a
family of 4, that is $47,00 year/$3,925 month/$906
week
 77%
of fast food workers in Louisiana rely on some
public assistance
 Public
employees are not immune: police officers
in Tallulah qualify for (and rely on) food stamps

17. +
The Big
Disconnect in
Louisiana:
1979 - 2012
Worker productivity
increased by 35%
Wages increased
by only 1%

18. +
Inequality in LA is getting
worse since the 1970s

19. +
And EVEN worse since 1990s

20. +
Declining Wages, Slow Job Growth
 In
2008, median hourly wage in Louisiana was
$15.56/hour
 By
2012, it had fallen to $14.68/hour
 Loss
over $1,600 per year for a typical worker
 Why?
Wage decline in high paying industries
(manufacturing) + Insufficient job creation = rising
unemployment rate

21. +
Job creation focused on low-wage
jobs

Even with increased job creation, the state’s jobs have not
kept up with the number of residents needing work

In order to keep up with increasing population, Louisiana
needs to create about 150,000 more jobs by 2016

Most jobs created since the start of the Great Recession have
occurred in low-wage industries (hospitality, leisure, service
jobs)

22. +
How do we change this pattern?
 Legislative
solutions
 Raise the minimum wage
 Increase the Earned Income Tax Credit (EITC)
 Job
creation/Workforce development solutions
 Public works/infrastructure building
 Accountable development (making sure that
public economic development money creates
good jobs)

23. + Economic Renewal and Job Creation can
happen even in difficult times

During the Great Depression, the country turned to
infrastructure projects to create jobs
 In Louisiana, we built bridges, hospitals, highways, air
bases, and a park system

Louisiana legislators bemoan our failing infrastructure,
this is an opportunity to create well-paying construction
jobs, to improve both the economy and physical plant
of our state

“Public-private partnerships” need to be accountable
to the public – are they creating jobs? Are those jobs
going to the people of the state? Are they paying a
living wage?

24. +
It’s starting to happen now…
 Legislators
are taking notice
 The
2014 Legislative Session will include at least
one proposal to (institute) and raise the state
minimum wage to $9.00/hour
 Even
the state’s top economist warns that the
“economic development” money spent in
Louisiana does not give us the promised “return on
investment”

25. +
What can we do?

Understand our economy and what the current state means
for workers and their families

Tell our stories
-- What does it mean to work for minimum wage?
-- Who is a “typical” minimum wage worker?
-- What would it mean to get a raise?

26. + The Cycle of Organizing for Action
1) House Meetings – Civic academies & house meetings
- stories
- find out you are not alone
- potential issues, common interests
- identify leaders – do one-on-one relational meetings
- build constituency with energy for making a change
Cycle repeats
5) House Meetings – Evaluate
impact on families
2) Develop Teams on issues
- Move from problems to issues
-- Find out what steps are being taken to
make a change
- Power Analysis – who has it, where is
the leverage to change
3) Shape Action through research
- The purpose of an Organized action is the ReAction . . . something changes.
--This is different from a demonstration, movement
or activism where the purpose of the action is the
action
4) Plan and do Action

27. +