On Labor Day, a sign of hope for working Americans?

“Could this Labor Day mark the comeback of movements for workers’ rights and a turn toward innovation and a new militancy on behalf of wage-earners?” asks E. J. Dionne in his column today in The Washington Post.


Dionne cites the recent report of Steve Greenhouse of The New York Times who recently wrote

“Until 1975, wages nearly always accounted for more than 50 percent of the nation’s G.D.P., but last year wages fell to a record low of 43.5 percent. Since 2001, when the wage share was 49 percent, there has been a steep slide. … For the great bulk of workers, labor’s shrinking share is even worse than the statistics show, when one considers that a sizable — and growing — chunk of overall wages goes to the top 1 percent: senior corporate executives, Wall Street professionals, Hollywood stars, pop singers and professional athletes. The share of wages going to the top 1 percent climbed to 12.9 percent in 2010, from 7.3 percent in 1979.

While wages were falling, Dionne notes, productivity was rising: “From 1973 to 2011, according to the Economic Policy Institute, employee productivity grew by 80.4 percent while median hourly compensation after inflation grew by just 10.7 percent.”

Dionne believes this trend cannot continue and sees Thursday’s one-day strike by fast food workers as a sign of hope.

The folks who serve your burgers are demanding that instead of an average fast-food wage of $8.94 an hour, they ought to be paid $15. Assuming two weeks of unpaid vacation, this works out to $30,000 a year, hardly a Ronald McDonald’s ransom. ….

Key unions are helping to organize these efforts, but they don’t necessarily expect formal union recognition. They want to raise wages, which is what could happen if the public responds. Companies have been frantically painting themselves green to attract environmentally conscious customers. Employers might discover, to paraphrase the old McDonald’s slogan, that their workers deserve a break today if consumers (who are also workers themselves) started pressuring them to be more employee-friendly.

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