labor in the eye of the hurricane (uup 19 oct 2011)

UnitedUniversityProfessionsDownstateMedical CenterChapterBrooklyn, NY

October 19, 2011

We are in the grips of a WORLDWIDE AUSTERITY DRIVE

… FROM TODAY’S WASHINGTON POST …

Greek union warns of austerity “death spiral”By Renee MaltezouATHENS, Oct 18 (Reuters) -

Greece risks sliding into a “death spiral” if the government continues to slash salaries and lay off workers instead of cracking down on tax evasion and raising money from the rich, the head of the biggest public sector union said on Tuesday.

Speaking ahead of a 48-hour general strike called to protest tough new austerity measures, due to be approved this week, Costas Tsikrikas, head of the 500,000-strong ADEDY union, accused Prime Minister George Papandreou’s Socialist government of blindly pursuing austerity measures that would plunge Greece deeper into recession.

“This will exacerbate recession, unemployment and state revenues will continue to fall, creating a death spiral. It must not continue,” Tsikrikas told Reuters in an interview and urged lawmakers to reject the package when it is voted in parliament on Wednesday and Thursday.

Tsikrikas said the latest measures, which include tax hikes and pay and pensions cuts, would wipe out any hope of growth for the stricken Greek economy, crushed by debt and now in its third year of recession.

http://www.washingtonpost.com/business/economy/interview-greek-union-warns-of-austerity-death-spiral/2011/10/18/gIQAIQ7auL_print.html

ANTI-UNION LEGISLATION INTRODUCED IN OVER 20 STATES

WISCONSIN AND OHIO HAVE PASSED SWEEPING ANTI-UNION LAWS

RIGHT-TO-WORK LAWS INTRODUCED IN 14 STATES

TEACHERS’ UNIONS TARGETED…

States with bills to limit or eliminate collective bargaining for teachers, or otherwise target teachers' unions include Wisconsin, Ohio, Tennessee, Indiana, Nebraska, Texas, New Hampshire, Michigan, Idaho, Massachusetts, Oklahoma, Pennsylvania, Alabama, Florida, Minnesota, Missouri, Utah, Arizona, and others

New York’s public employees have been blamed for the state’s

fiscal crisis. Governor Cuomo threatened public unions with 9,800

layoffs if we won’t give up $450 million in contract concessions.

A major assault A major assault upon upon

public education, education, public health health

and and public safety safety

A major assault A major assault upon upon

public education, education, public health health

and and public safety safety

What should What should we do?we do?

Triangle Shirtwaist Factory Fire: March 25, 1911. 146 dead. (126 women)

What should What should we do?we do?

WEWENEEDNEED

TOTOTAKETAKEOUROUROWNOWN

PULSE!PULSE!

They’re waging They’re waging an offensive an offensive against us.against us.

They’re waging They’re waging an offensive an offensive against us.against us.

We should We should remember the remember the old adage: “The old adage: “The best defense is a best defense is a good offense.”good offense.”

They’re waging They’re waging an offensive an offensive against us.against us.

We should be We should be asking:asking:

WHO are they WHO are they DEFENDING?DEFENDING?

Billionaires in the Universe1,210

http://www.forbes.com/wealth/billionaires

We live in a time of unprecedented income inequality.

Billionaires in the Universe 1,210

Billionaires in the U.S.A. 412

http://www.forbes.com/wealth/billionaires

We live in a time of unprecedented income inequality.

Billionaires in the Universe 1,210

Billionaires in the U.S.A. 412

Billionaires in New York 68!

http://www.forbes.com/wealth/billionaires

We live in a time of unprecedented income inequality.

Billionaires in the Universe ~ 1,210

Billionaires in the U.S.A. ~ 412

Billionaires in New York ~ 68!

68 billionaires IN NEW YORK?!

NEW YORK IS NOT BROKE

http://www.forbes.com/wealth/billionaires

We live in a time of unprecedented income inequality.

The wealthiest New Yorker is no longer Mayor Bloomberg…

The wealthiest New Yorker is no longer Mayor Bloomberg…XX

It is It is David David Koch,Koch,worth worth

about about

It is It is David David Koch,Koch,worth worth

about about $22 $22

Billion!Billion!

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

Top 1% Income Share 1914 to 2006

New York’s wealthiest 1% get >35% of all income in N.Y.(New York has the most unequal income concentration of any state in the nation.)

^ ^Eisenhower Reagan

James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” December 13, 2010, Fiscal Policy Institute

Growing income inequality

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In the United States the wealthiest 1% now take 25% of the income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In the United States the wealthiest 1% now take 25% of the income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In the United States the wealthiest 1% now take 25% of the income.

In New York State the wealthiest 1% now take 35% of the income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In the United States the wealthiest 1% now take 25% of the income.

In New York State the wealthiest 1% now take 35% of the income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In New York State the wealthiest 1% now take 35% of the income.

In New York City the wealthiest 1%now take 45% of the income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In New York State the wealthiest 1% now take 35% of the income.

In New York City the wealthiest 1%now take 45% of the income.

(The most income-unequal city in the most income-unequal state.)

Top 1% Income Share 1914 to 2006

New York’s wealthiest 1% get >35% of all income in N.Y.(New York has the most unequal income concentration of any state in the nation.)

^ ^Eisenhower Reagan

James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” December 13, 2010, Fiscal Policy Institute

Growing income inequality

We live in a time of unprecedentedWe live in a time of unprecedentedincome inequality. income inequality. Income

share of the top

0.01%1913

to2008

The top 1/10,000th of householdsnow take

>1/20th of all the

income.

0.01%0.01%~1/100th of 1% of households~~1/100th of 1% of households~

(That’s 1/10,000th!) (That’s 1/10,000th!) take more thantake more than

5% or5% or>1/20th of total income.>1/20th of total income.

1/10,000th 1/10,000th taketake >1/20th >1/20th

of total income?of total income?

This isThis isUNSUSTAINABLEUNSUSTAINABLE

Since 1990Since 1990 in terms in terms of income share:of income share:

the the top 5%top 5% have have GAINED.GAINED.

THE bottom 95% THE bottom 95% have LOST.have LOST.

Income Concentration Trend in NYS1990 compared with 2007

Income Concentration Trend in NYS1990 compared with 2007

Household incomes in New York Household incomes in New York 19801980 compared with compared with 20072007

(2007 dollars)(2007 dollars)

While the rich have gotten richer, While the rich have gotten richer, the poorest one-half of usthe poorest one-half of us

have seen our household income fall.have seen our household income fall.

Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute

Household incomes in New York Household incomes in New York 19801980 compared with compared with 20072007

(2007 dollars)(2007 dollars)

Average Income (AGI), % changeAverage Income (AGI), % change1980 -Top 1% $446,507 1980 -Top 1% $446,507

2007 - Top 1% $2,730,973 2007 - Top 1% $2,730,973 +511.6%+511.6%

Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute

Household incomes in New York Household incomes in New York 19801980 compared with compared with 20072007

(2007 dollars)(2007 dollars)

Average Income (AGI), % changeAverage Income (AGI), % change

1980 - Bottom 50% $16,0741980 - Bottom 50% $16,0742007 - Bottom 50% 2007 - Bottom 50% $14,045$14,045 -12.6%-12.6%

Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute

Household incomes in New York Household incomes in New York 19801980 compared with compared with 20072007

(2007 dollars)(2007 dollars)

Average Income (AGI) % changeAverage Income (AGI) % change1980 -Top 1% $446,507 1980 -Top 1% $446,507

2007 - Top 1% $2,730,973 2007 - Top 1% $2,730,973 +511.6%+511.6%

1980 - Bottom 50% $16,0741980 - Bottom 50% $16,0742007 - Bottom 50% 2007 - Bottom 50% $14,045$14,045 -12.6%-12.6%

Source: James Parrott, Ph.D., “Grow Together or Pull Farther Apart? Income Concentration Trends in New York,” Dec. 13, 2010, Fiscal Policy Institute

http://www.epi.org/economic_snapshots/entry/state_of_working_america_preview_the_declining_value_of_minimum_wage/

Productivity and hourly compensation Productivity and hourly compensation growth, U.S., 1973-2004growth, U.S., 1973-2004

Figure 3N from: Mishel, Lawrence, Jared Bernstein, and Sylvia Allegretto, The State of Working America 2006/2007. An Economic Policy Institute Book. Ithaca, N.Y.: ILR Press (Cornell University), 2007.

http://creditwritedowns.files.wordpress.com/2008/10/household-debt-vs-savings.png

http://www.nytimes.com/2011/10/10/us/recession-officially-over-us-incomes-kept-falling.html

NewYorkTimesOct. 10,2011

Why DO they say “the recession is over”?

Slide courtesy of Mark Brenner, Labor Notes

Financiers’ bonuses: billions and billions and billions

Slide courtesy Mark Brenner, Labor Notes

Graph courtesy Mark Brenner, Labor Notes

Corporate taxes have gone down for over 75 years

If New York’s corporate tax breaks were restored to 2000 levels, the state would have an extra $1.3 billion annually.

(The Governor of New Yorkwants $450 million in concessions from public employee unions.)

Tax breaks for the wealthy set us up for this crisis!

No such thing as “trickle down.”

Lost revenue: Billions and billions and billions

“Back on Track: Why Progressive Tax Reform is an Essential Part of New York’s Budget Solution,” March 2009

Even with the surcharge on wealthy incomes, the richest 1% still pay a smaller percentage in taxes than the rest of us.

Janitors and security guards at the Helmsley Building pay a larger share than the building’s residents.

Catherine Rampell, "The Little People Pay Taxes," New York Times, February 23, 2011http://economix.blogs.nytimes.com/2011/02/23/the-little-people-paytaxes/

“In 1972, New York State had a personal income tax with 14 brackets, ranging from a low of 2% to a high of 15% … New York now has a 5-bracket / 5-rate system … All five of New York's current rates are between 4% (the current lowest rate) and 6.85% (the current highest rate)…” Frank Mauro, “A Little Bit of Tax History,” Fiscal Policy Institute

http://www.fiscalpolicy.org/taxhistory2.htm

(Together, the wealthiest 1 percent of New Yorkers receive over $200 billion in annual taxable income.)

“In 1972, New York State had a personal income tax with 14 brackets, ranging from a low of 2% to a high of 15% … New York now has a 5-bracket / 5-rate system … All five of New York's current rates are between 4% (the current lowest rate) and 6.85% (the current highest rate)…” Frank Mauro, “A Little Bit of Tax History,” Fiscal Policy Institute

To get into the top bracket and pay the same state income tax as New York’s billionaires in 2012, a single person needs to earn only $20,001 and a married couple only $40,001!

http://www.fiscalpolicy.org/taxhistory2.htm

(Together, the wealthiest 1 percent of New Yorkers receive over $200 billion in annual taxable income.)

“In 1972, New York State had a personal income tax with 14 brackets, ranging from a low of 2% to a high of 15% … New York now has a 5-bracket / 5-rate system … All five of New York's current rates are between 4% (the current lowest rate) and 6.85% (the current highest rate)…” Frank Mauro, “A Little Bit of Tax History,” Fiscal Policy Institute

To get into the top bracket and pay the same state income tax as New York’s billionaires in 2012, a single person needs to earn only $20,001 and a married couple only $40,001!

Reinstituting the 1972 income tax structure would yield $8 billion more in income tax revenue for New York… wiping out the deficit… while reducing income taxes for 95% of us!

http://www.fiscalpolicy.org/taxhistory2.htm

(Together, the wealthiest 1 percent of New Yorkers receive over $200 billion in annual taxable income.)

Tax breaks for the wealthy set us up for the “crisis”

that created the austerity drive!

(No such thing as “trickle down.”)

Lost revenue: Billions and billions and billions

Matched for age, gender and education we are NOT better paid than those in the private-sector

(Public worker compensation is not to blame!)

Matched for age, gender and education we are NOT better paid than those in the private-sector

(Public worker compensation is not to blame!)Jeffrey Thompson & John Schmitt:

"The Wage Penalty for State and Local Government Employees in New England," September 2010

Political Economy Research Institute, University of Massachusettsand Center for Economic and Policy Research

Matched for age, gender and education we are NOT better paid than those in the private-sector

Public vs. private

In the public sector, entry-level jobs for those with a high school education, tend to come with benefits and a livable wage.

Matched for age, gender and education we are NOT better paid than those in the private-sector

Public vs. private

In the public sector, entry-level jobs for those with a high school education, tend to come with benefits and a livable wage.

In the private sector, entry level jobs for those coming out of high school tend to be temporary-part time jobs, with no benefits and

subsistence or poverty wages.

Matched for age, gender and education we are NOT better paid than those in the private-sector

Public vs. private

In the public sector, entry-level jobs for those with a high school education, tend to come with benefits and a livable wage.

In the private sector, entry level jobs for those coming out of high school tend to be temporary-part time jobs, with no benefits and

subsistence or poverty wages.

Advanced skills and degrees get you quickly to the wage ceiling in the public sector. In the private sector the sky is the limit.

Matched for age, gender and education we are NOT better paid than those in the private-sector

The wage structure of the private sector should emulate that of the public sector, not the other way around!

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In New York State the wealthiest 1% now take 35% of the income.

In New York City the wealthiest 1%now take 45% of the income.

During the heyday of America’s middle class (1950-1980) the top

1% had about 10% of total income.

In New York State the wealthiest 1% now take 35% of the income.

In New York City the wealthiest 1%now take 45% of the income.

(The most income-unequal city in the most income-unequal state.)

Income inequality Income inequality and the assault and the assault

upon upon public education, education,

public health health and and public safety safety

Income inequality Income inequality and the assault and the assault

upon upon public education, education,

public health health and and public safety safety

What does income inequality have to do with education, health and safety?

http://www.equalitytrust.

More income inequality means more Health, education and social problemsMore income inequality means more

Health, education and social problems

Health and social problemsare worse in more unequal US States

Health and social problemsare worse in more unequal US States

The situation is The situation is ominous for all, not ominous for all, not only public sector only public sector

union members and union members and not only not only

New Yorkers.New Yorkers.

Public employeePublic employeeunion membersunion members7.6 million.7.6 million.

Private sector Private sector union members union members 7.1 million.7.1 million.Source: Source:

““(Government) workers of the (Government) workers of the world unite! Public-sector world unite! Public-sector unions have had a good few unions have had a good few decades. Has their luck run decades. Has their luck run out?” out?”

The EconomistThe Economist, 1/6/11, 1/6/11

www.economist.com/node/17849199www.economist.com/node/17849199

The attack on public The attack on public employees is a major employees is a major

assault uponassault uponorganized labor,organized labor,

an offensive against an offensive against all of the unionsall of the unions

The attack on public The attack on public employees is a major employees is a major

assault uponassault uponorganized labor,organized labor,

an offensive against an offensive against all of the unionsall of the unions

Can an assault on our union Can an assault on our union rights happen in New York?rights happen in New York?

We must defend the We must defend the Triborough Amendment!Triborough Amendment!

1967 Taylor Law prohibits 1967 Taylor Law prohibits public employee strikes.public employee strikes.Triborough Amendment Triborough Amendment

added to the Taylor Law in 1982added to the Taylor Law in 1982(with the support of the Governor)(with the support of the Governor)

The Triborough Amendment The Triborough Amendment keeps all aspects of the current keeps all aspects of the current

contract in force until a new contract in force until a new contract is negotiated.contract is negotiated.

Contrary to the propaganda that it gives Contrary to the propaganda that it gives unions an unfair advantage, theunions an unfair advantage, the

Triborough Amendment in fact establishes a Triborough Amendment in fact establishes a labor-management balance of power and has labor-management balance of power and has

prevented strikes.prevented strikes.

We need to take We need to take our own pulse! our own pulse!

Remember the Remember the adage: “the best adage: “the best defense is a defense is a good offense.”good offense.”

Our counter-Our counter-offensive…offensive…

We need to take We need to take our own pulse! our own pulse!

Remember the Remember the adage: “the best adage: “the best defense is a defense is a good offense.”good offense.”

Our counter-Our counter-offensive…offensive…

Alternatives to layoffs and cutbacks:

Stock Transfer Tax ($16 billion): A tax of 1/20th of one percent each stock trade, on the books since 1915 but fully rebated to stock traders since 1981. This tax would have brought in $16 billion in 2009 if it wasn’t given back.

Alternatives to layoffs and cutbacks:

Bankers’ Bonus Tax ($10 billion): $20 billion in bankers’ bonuses in 2009, according to the state Comptroller: one-half of this will : one-half of this will balance the state budget!balance the state budget!

Alternatives to layoffs and cutbacks:

More Progressive Income Tax ($8 billion): According to the Fiscal Policy Institute, if New York State went back to the progressive income tax structure of 1972, the state would raise $8 billion more in revenue while giving 95% of New Yorkers a tax cut.

At Least:

Keep the surcharge! ($5 billion): Higher tax brackets of 7.85% on income between $200,000 and $500,000 and 8.97% on income over $500,000 are set to expire at the end of 2011.

These temporary tax rates bring in $5 billion a year yet Gov. Andrew Cuomo continues to promise to protect the wealthy from them!

Dare We Say It?

Single payer health care would liberate $25 billion* in health spending in New York State! *(Money now wasted on overhead and profiteering.)

And…

End the wars! Bring them all home now! Cost of the Iraq war alone to New York taxpayers over $47 billion and counting.

Organize! Mobilize others! Join Occupy Wall Street!

Defend our unions!(and share these data)

Funeral after the Triangle fire: 100,000 marched, 250,000 lined the street