County attorneys take aim at criminal wage theft

April 27, 2022 by

Ramsey County Attorney John Choi’s office recently hired Jacob Shawback (L) to investigate prevailing-wage and wage-theft allegations. Shawback previously worked at the Fair Contracting Foundation of Minnesota, which monitors labor standards on publicly funded construction projects.

Local prosecutors intend to shine a search light on the shadowy corners of the economy where wage theft and labor trafficking have found a home, especially the non-union construction industry.

Ramsey County Attorney John Choi recently hired a full-time investigator to begin delivering wage-theft cases for potential prosecution under the state’s theft-by-swindle statute. Choi, who co-chaired a Labor Advisory Council with Hennepin County Attorney Mike Freeman, said the hiring is a step toward moving more wage-theft cases into the criminal justice system.

The most common types of wage theft occur when employers misclassify workers as independent contractors, fail to pay minimum wage or don’t follow overtime laws. The state’s labor and commerce departments investigate those violations, but the investigations often result in civil penalties – a warning, a fine or being temporarily barred from bidding on public projects.

“In a way, it can all be just looked at as a cost of doing business,” Choi said.

“Both Mike Freeman and I have this really strong belief that some of this conduct should be looked at from a criminal prosecution perspective,” Choi added. “Oftentimes, it’s not until people are subject to potential jail or prison time – or that negative publicity of being prosecuted – that you get people’s attention.”

‘Rampant’ wage theft

The advisory council led by Choi and Freeman pulled together prosecutors, regulators and labor advocates to work collaboratively on best practices for holding wage thieves accountable in the criminal justice system.

Earlier this year, the council approved a report that found “rampant wage theft” in the non-union construction industry in Hennepin and Ramsey counties, noting that it comes at a significant cost to local communities.

The report estimated that 4,872 construction workers in the two counties are victims of payroll fraud, that employers steal over $3 million in wages each year and that wage theft diverts over $11 million from Social Security and Medicare funds.

For unions and labor advocacy groups like CTUL, the report’s findings validated the complaints they have heard from people working in the non-union construction industry, where layers of subcontractors and labor brokers too often conceal illegal dealings.

“Wage theft cannot be tolerated in an industry that is so essential to our city’s infrastructure,” CTUL Co-Director Merle Payne said. “Not only does wage theft hurt workers and their families, it also puts a strain on taxpayers when developers off-load the cost of labor and insurance onto the public.”

Raising the profile

The Labor Advisory Council also worked to create a “handoff process,” so that civil investigators could deliver relevant information to agencies pursuing criminal prosecution without hindering either process. The council also reached out to both county sheriffs to get buy-in from law enforcement.

“We know there’s a lot more we can do in the criminal justice system if we get the right kind of investigation done,” Freeman said.

The Hennepin County Attorney’s Office demonstrated as much with its high-profile prosecution of Ricardo Batres. The notorious wage broker pleaded guilty in November 2019 to felony charges of labor trafficking and insurance fraud, and received a nine-month jail sentence.

But even as they celebrated the Batres case, labor advocates warned that his crimes were just the tip of the iceberg when it comes to wage theft in the Twin Cities. Choi said the Batres case was a turning point in his office’s decision to get proactive about criminal prosecution.

“I just realized, we’re sitting here waiting because we’re usually the recipient of cases,” Choi said. “But sometimes to get something done, you just have to go and do it yourself. So let’s go out and hire somebody to be our investigator.”

Choi’s office gained funding from the county board to replace a retiring, part-time employee who investigated prevailing-wage violations with a new, full-time investigator to help deliver cases related to prevailing wage and wage theft.

The new investigator, Jacob Shawback, previously worked for the Fair Contracting Foundation of Minnesota, which monitors labor standards on public construction projects across the state. “You’ve got to love working on behalf of working people, and Jacob has the background of working with labor unions around this issue,” Choi said.

The county attorney said he hopes the increased public attention on wage theft as a crime will have a deterrent effect and raise awareness among other prosecutors in the state. Choi compared it to his office’s focus on sex trafficking a decade ago, which drew nationwide attention.

“I remember when I first started talking about it, people would ask if it’s really happening here,” Choi said. “A lot of people weren’t aware of it. But we gained a greater awareness, and that greater awareness came, in part, because we started having cases.

“Our labor partners are telling us they know for a fact these violations are happening. It’s not a clerical mistake; people are actually stealing. And I think this is one of those areas that needs improvement to make sure these cases get the attention of the justice system.”

Learn more

Choi and others involved in the Labor Advisory Council’s work will offer a presentation at the May 11 St. Paul Regional Labor Federation (RLF) delegate meeting, beginning at 6 p.m.

“Despite the strongest wage theft protection law in the country, we know workers in Minnesota continue to experience wage theft,” RLF President Kera Peterson said. “I’m glad for the opportunity to serve on the Labor Advisory Council, and I’m thankful that County Attorney Choi and the Ramsey County Attorney’s Office are working to enforce our existing wage theft law.”

Filed Under: Labor Voices, Politics Tagged With: , , , , , ,

Resources for workers impacted by COVID-19 response

March 30, 2020 by

Efforts to halt the spread of COVID-19 are creating immediate economic hardship for many working families.  

Minnesota employers slashed payrolls after Gov. Tim Walz issued emergency orders temporarily shutting down restaurants, schools, movie theaters and other spaces where contagion was likely to occur.

As of last Friday, over 204,000 Minnesotans had applied for unemployment insurance benefits, flooding the state’s website with such a high volume of traffic that the agency today rolled out a new process limiting who can apply on certain days of the week based on Social Security number.

Unions, meanwhile, have been busy advocating for broad health and economic protections for workers during the pandemic response, while also scrambling to connect impacted members with support they need.

Twin Cities worker center CTUL, which advocates for people working in low-wage industries, has compiled a “Know Your Rights” list with information on access to safety equipment, earned sick time and other protections during the COVID-19 emergency.

The Saint Paul Labor Studies and Resource Center, the nonprofit arm of the St. Paul Regional Labor Federation, has compiled a evolving list of resources that may be available to help people make ends meet during the public-health crisis. 

Unemployment Insurance can provide immediate, emergency relief for many workers impacted by COVID-19, including people who have been laid off or who have seen their hours reduced. Gov. Tim Walz moved quickly to streamline UI benefits during the crisis.

People seeking health insurance during the COVID-19 outbreak can shop for coverage on the state’s health exchange, MNsure.org. 

Greater Twin Cities United Way is a longstanding partner in the AFL-CIO Community Services program, and the nonprofit is stepping up to help working families during the COVID-19 response in several ways. 

Evictions have been suspended during the COVID-19 pandemic, but resources remain are available to working people concerned about keeping their homes. 

Financial assistance may be available through your county. Call to arrange an intake interview. 

Xcel Energy has announced it will not disconnect any household’s utilities during the pandemic. Learn more about the company’s response here. 

Some schools are giving students free meals while schools are closed due to the COVID-19 virus. 

The deadline for filing state and federal income taxes has been pushed back to July 15, 2020. 

Student loan borrowers may be able to suspend payments during the pandemic response. Click here for more information. 

The American Red Cross has a “critical need” for blood donors right now. To schedule an appointment call  651-291-6789, or click here to find a drive. 

Be on the lookout for scams! Here’s a list of tips from the Federal Trade Commission on how to avoid scams related to the coronavirus. 

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Labor trafficker’s victims speak out, pointing to need for reform

January 17, 2020 by

Ricardo Batres (Hennepin County photo)

Notorious wage broker Ricardo Batres, who pleaded guilty to felony charges of labor trafficking and insurance fraud in November, received a nine-month sentence in Hennepin County district court Wednesday.

The sentencing brought to a close the first labor trafficking case to emerge from Minnesota’s construction industry. But worker advocates, armed with the findings of an alarming new report, warn that unless the industry makes some fundamental changes, it’s unlikely to be the last.

Judge Lois Conroy did not stray from the terms of a plea agreement Batres reached with prosecutors last year, but the proceeding did give his victims an opportunity to put their stories on record.

“I fear those connected with Mr. Batres,” one of his former workers, identified by the initials “YIB,” said in a statement read by a victim’s advocate. “I am always fearful. I feel like everyone is my enemy. I did not anticipate this experience in Minnesota.”

“YIB” was one of four former employees who provided the court with statements. They said Batres made them work long hours to keep their housing, which the trafficker arranged, or to pay off debts, which the trafficker held.

Some said they were not paid in full for hours they worked. Others described working through the pain of jobsite injuries, often in unsafe conditions.

“Death was very close to us,” one victim said.

When a spinal injury sustained by victim “JZL” became too serious to work through, Batres instructed the worker to give false information to medical providers, so Batres could avoid liability. In his statement, “JZL” said his family “lived in constant fear” because Batres “threatened to kill us if I reported him to authorities.”

“He treats people worse than animals,” another victim said. “He does not have a conscience.”

Twin Cities construction workers joined the “March for Dignity and Respect,” sponsored by CTUL, in Minneapolis just over a year ago.

An industry in crisis

The testimony of Batres’ victims echoed findings of a new report by the Worker-driven Social Responsibility (WSR) Network, which warns of a “human rights crisis” on local non-union construction sites.

Released last month, “Building Dignity and Respect: The Case for Worker-driven Social Responsibility in the Twin Cities Construction Industry” draws from surveys of 76 metro-area residents who have worked a wide range of construction jobs.

CTUL, a Twin Cities worker center and human rights organization, conducted the surveys last winter, gathering information about wages, benefits, training, workplace safety and more.

Nearly half of workers reported being cheated out of wages they were owed. Many said their employers failed to tack overtime premiums onto their wage rates. Others said they were paid less than minimum wage, were forced to work through legally required breaks or had hours shaved off their time cards.

The report also calls into question safety protocols on local non-union sites. Nearly half of those surveyed said they had not received safety training before beginning work, and 44% reported not getting proper safety equipment from an employer.

Three in 10 workers surveyed said they had been hurt on the job at some point, and most workers who reported getting hurt said their employer failed to cover medical expenses or compensate them for lost wages.

Meanwhile, a third of workers surveyed said they wouldn’t voice their concerns about safety, wage theft or other abuses to supervisors for fear of retaliation, whether it be losing their job or being blacklisted, deported or kicked out of employer-provided housing.

Tip of the iceberg

While Batres’ conviction breaks new ground, advocacy groups like CTUL and local construction unions warn Batres is not the only bad actor in town. CTUL is currently investigating four other labor trafficking cases, with dozens of Twin Cities workers involved, according to the WSR Network report.

At Batres’ sentencing, the worker center submitted a community impact statement into the record, warning the non-union construction industry creates incentives for contractors like Batres to “cut costs on the backs of workers.”

“Large developers and finance behind those developers have learned that they can put downward pressure on contractors on their projects to build the projects as quickly and cheaply as possible,” the statement reads. “This has led to extreme fragmentation in the industry, with multiple layers of sub-contractors competing to offer the cheapest rates possible.

“The effect is that the one who gets the contract is the one who has figured out the most creative ways to skirt labor laws in order to put in a competitive bid.”

Moving forward

Fragmentation and transience may be facts of life for people working at the bottom of construction labor chain, but unsafe conditions, wage theft and abuse don’t have to be.

The report calls for a new, worker-driven model to hold Twin Cities developers and contractors accountable – and to stop traffickers like Batres before they get a toehold in the market.

The approach involves getting decision-makers at the top of the labor-contracting chain to enter a legally binding, standard-setting agreement with a human rights organization.

Similar structures have improved conditions for workers in other highly fractured contracting chains worldwide, CTUL Co-Director Merle Payne said. After years of organizing by tomato workers, corporate buyers and growers entered into a WSR structure – the Fair Food Standards Council – that monitors compliance with a set of unique standards in the Florida fields.

“This model will work effectively in a sector where the real power is so many tiers away from you as a worker,” Payne said. “It creates accountability through the entire structure by ensuring the people at the top are taking responsibility to ensure their profits are not made off of severe exploitation.”

Building dignity and respect

Workers organizing with CTUL already have launched a campaign to make the WSR model a reality.

They want large developers and general contractors in the Twin Cities to participate in the Building Dignity and Respect Standards Council. The council, Payne said, would establish and monitor a code of conduct that participants would require their subcontractors to uphold at every strata of the labor chain.

Additionally, the council would educate workers about their rights and make it easy for workers to report any violations without fear of retaliation. Any employer found to have violated the code of conduct would face swift, meaningful consequences.

While Batres’ victims waited months for their day in court, in the Florida tomato fields, where workers now have access to a complaint hotline, most disputes are resolved in less than two weeks, according to the Fair Foods Standards Council.

“It really demonstrates the power of what this model can be,” Payne said. “When you have workers themselves empowered to enforce their standards, suddenly you have thousands of monitoring agents on the ground … making sure there are no violations in the first place.

“That’s deep enforcement, and that’s what this model builds. When that happens, in something like this case, Ricardo Batres does not exist.”

Filed Under: Organizing, Politics Tagged With: , , , , , , ,

Trafficker’s plea deal reveals construction industry ‘in distress,’ advocates say

November 20, 2019 by

When a notorious wage broker pleaded guilty to two felony charges in Hennepin County this week, it was welcome news for unions and community groups working to rid Minnesota’s construction industry of labor abuses.

“We are grateful that the legal system is holding those who commit wage theft and illegal trafficking of construction workers seriously,” said Jessica Looman, the Minnesota Building and Construction Trades Council’s executive director, after Ricardo Batres pleaded guilty to labor trafficking and insurance fraud Monday.

The plea deal confirms that Batres recruited immigrant workers to fill jobs on Twin Cities construction sites, and he denied some their legally guaranteed rights on the job by exploiting their undocumented status.

Sentencing is not until January, but prosecutors will recommend Batres serve up to nine months in the county workhouse and five years of probation. He could also be barred from inclusion in future state or federal construction contracts.

The Building Trades Council, which represents the state’s unionized construction workforce, called Batres’ case the first big test of Minnesota’s labor trafficking and wage theft laws.

It’s unlikely to be the last.

In July, 14 Minnesota construction unions launched “Not On My Watch/Ya No Mas,” a campaign to heighten awareness of wage theft and labor trafficking and to assist exploited construction workers.

Dan McConnell, manager of the Minneapolis Building and Construction Trades Council, said Batres’ plea is an indication of the new initiative’s potential.

“The case against Ricardo Batres shows the strength of the construction community when we stand together against wage theft and labor trafficking,” he said. “It’s imperative that we protect the health of the construction community by continuing to call out bad actors who exploit our workers for their own gain.”

Unions are teaming up with community groups like Advocates for Human Rights and the local worker center CTUL to educate workers and identify abuses. CTUL organizers say they are currently investigating three other cases of labor trafficking and over a dozen cases of wage theft in the Twin Cities construction industry.

CTUL Co-Director Veronica Mendez Moore said the Batres case reflects “an industry in distress,” and added that the problem goes beyond labor brokers.

“Real estate developers and their financial backers are directly profiting from this kind of labor exploitation,” she said. “While some sectors of the construction industry are unionized and abide by human rights standards, there is a dark underbelly that does not.”

Minnesota’s new wage-theft law, among the toughest in the nation, will make it easier for officials to patrol that dark underbelly. Passed earlier this year, the law creates additional protections for workers and stiffens penalties for employers that commit wage theft.

Labor traffickers like Batres don’t just show up on construction projects, of course.

“This is a big problem in the industry,” said Burt Johnson, a spokesperson for the North Central States Regional Council of Carpenters. “Construction contractors and developers can no longer hide behind hiring a low-bid contractor when those bids are based on a criminally low price.”

Filed Under: Organizing, Politics Tagged With: , , , , , ,

Bill to stop wage theft advances in Minnesota House

February 6, 2019 by

Supporters of House File 6, a bill to crack down on wage theft, staged a press conference at the Capitol.

A labor-backed bill to protect Minnesota workers from wage theft advanced out of its first committee hearing at the Capitol today. The bipartisan measure would crack down on employers that don’t pay workers what they are owed – and create an even playing field for employers that do.

“Those good employers are getting burned by these criminals – and that’s what they are,” said Rep. Tim Mahoney (DFL-St. Paul), the bill’s lead author and a member of Pipefitters Local 455.

Working people nationwide lose billions of dollars to wage theft each year. They include an estimated 39,000 workers in Minnesota, according to an estimate from the state’s Department of Labor and Industry.

CTUL, a worker center based in the Twin Cities, has helped workers recover over $2 million in lost wages in recent years.

Wage theft can take a number of different forms. Employers who fail to comply with minimum- or prevailing-wage laws commit wage theft, as do employers who don’t pay overtime.

Sometimes, wage theft is obvious, as it was when Lakeville Motor Express abruptly shuttered its Roseville terminal in November 2016, claiming it had no money to pay 95 members of Teamsters Local 120 for their prior two weeks of work.

The same thing happened in 2014 to Robin Pikala, a personal care assistant from Fridley and member of SEIU Healthcare Minnesota. She was among 800 workers who lost a combined $1.4 million when Crystal Care, one of the largest in-home service provider in Minnesota, filed for bankruptcy – after stringing employees along without pay for 45 days.

“Wage theft is real, and it’s hurting too many families in our state,” Pikala said at a press conference staged in advance of today’s committee hearing by the Minnesota Coalition to End Wage Theft, which includes several of the state’s largest unions.

Other workers who spoke at the press conference described how wage theft can be embedded within an industry’s culture, or built into a complicated web of workplace relationships, like construction workers misclassified “independent contractors” to circumvent wage and benefit standards.

“In the restaurant world, wage theft isn’t the exception,” Kevin Osborn, a line cook in Minneapolis, said. “It’s the norm.”

Osborn said it’s “standard procedure” for cooks to set up their workstations before punching in and continue cleaning them after punching out. Sometimes employers will move hours around between pay periods to avoid paying overtime, he said; other times they don’t bother paying at all.

And if a worker complains? “We don’t call it retaliation,” Osborn said. “We call it getting your hours cut.”

New penalties for employers who retaliate against employees, commit wage theft or deny workers access to their payroll information are among the provisions of Mahoney’s bill, House File 6. In addition, the bipartisan measure would require uniform payroll record keeping, and empower the Department of Labor and Industry to subpoena those records if a worker brings forth a wage-theft claim.

Mahoney has 34 co-authors on House File 6, although there is currently no companion bill in the Senate.

House Majority Leader Ryan Winkler, who attended the press conference, said addressing wage theft was a top priority in the DFL caucus. Winkler said he is confident the measure would pass the House, potentially as part of a larger “omnibus jobs bill.”

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Wage hike shows what’s possible when workers join together, think big

December 19, 2018 by

Working people celebrated at City Hall as Mayor Melvin Carter signed St. Paul’s new $15 minimum wage ordinance Nov. 14.

Six years ago, when fast food workers in New York and, later, cities across the country began striking and rallying in the streets for a $15 minimum wage, the idea was dismissed as too radical.

Today, it’s written into the City of St. Paul’s legislative code.

Members of the City Council voted unanimously Nov. 14 to phase in $15 for all workers – indexed to inflation – over the next nine years. Within minutes of the vote, Mayor Melvin Carter, who made $15 a rallying cry in his bid for office one year ago, had put his signature on the ordinance.

That set off a celebration like few others at City Hall, where many of the working people who led the fight for $15 had gathered to witness the historic moment.

Shalantra Taylor, who works at a McDonald’s in St. Paul and is looking for a second job to make ends meet, was among them. She thanked Carter and council members for “listening to workers, for standing with us.”

“I am homeless, and I’m not the only one,” Taylor said. “Many working people have to work multiple jobs and are still living paycheck to paycheck… This minimum wage law is going to lift up working people and address racial inequalities in our city.”

During a signing ceremony at City Hall, St. Paul Mayor Melvin Carter showed off the city’s new $15 minimum wage ordinance, which drew unanimous backing from members of the City Council.

Making history

Taylor and other workers never wavered in their demands, and they resisted efforts to divide them along the lines of age, experience or industry.

When the restaurant lobby pushed a subminimum wage for tipped workers, a coalition of worker, faith and community organizations pushed back – both in the streets and in formal meetings with elected officials. As a result, the so-called “tip adjustment” never even came up for a vote before the council, and it is not included in the new ordinance.

By the time the ordinance was introduced this fall, the 15 Now Coalition had gained the influence necessary to go toe-to-toe with powerful lobbying interests like the Minnesota Restaurant Association and big-box retailers. And it did so by fusing the energy of community members fighting entrenched poverty and racial disparities with the power of organized labor.

When those groups share a bold, progressive policy vision, labor historian Peter Rachleff said, it’s a recipe for making history.

“I think the fight for $15 nationally looks more like the fight for the eight-hour day and the fight against child labor than it looks like anything else in American history,” Rachleff, co-director of the East Side Freedom Library, said.

All three movements were initially derided as too ambitious.

“People said it’s too much too fast, but it’s that kind of evocative vision” that inspired the fight for child labor laws and the eight-hour day, Rachleff said. And it’s a similarly bold vision inspiring workers to fight for $15 today.

“We’re not talking about 2 percent a year or a $2 raise,” Rachleff said. “By putting $15 up the flagpole, people felt it was worth fighting for. People could imagine their lives being changed by making that kind of money.”

In 2017, fast food workers went on a Labor Day strike to launch the campaign for $15 in St. Paul.

Labor support ‘essential’

From the earliest stages of the Fight for $15, unions in the Twin Cities have recognized the importance of fighting alongside workers, whether union or non-union, pushing for a higher minimum wage.

Union members marched alongside striking fast food workers in the early days of the campaign, and many labor organizations, including the St. Paul Regional Labor Federation, helped make $15 a litmus test for candidates running for mayor in 2017.

“Raising the minimum wage, without a tip adjustment, was a fight our affiliate unions and delegates realized was essential to who we are,” St. Paul RLF President Bobby Kasper said. “The labor movement won’t remain relevant unless we’re fighting for all working people.”

After Carter announced plans to take on the issue in his first year in office, the St. Paul RLF began hosting weekly meetings with activists and organizers from the 15 Now coalition. Several union members sat on the study group whose recommendations formed the basis of the minimum wage ordinance.

Now that the ordinance has passed, the 15 Now coalition will focus on education and enforcement in St. Paul, with an eye on taking the movement statewide.

“It’s a really ambitious idea,” Rachleff said. “But the beauty of it is it will force people to do the kind of metro-outstate organizing we need so desperately, not just in Minnesota but also in Wisconsin and throughout the Midwest.

“Those conversations don’t happen if there isn’t a focal point.”

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Twin Cities workers launch campaign to stop construction industry abuses

December 18, 2018 by

Supporters of the “March for Dignity and Respect” make their way down Lake Street in Minneapolis’ Uptown neighborhood.

With a dramatic rally in the streets of south Minneapolis today, Twin Cities construction workers launched a new movement to improve labor standards in their industry and guarantee dignity for all workers.

“I don’t want to see any more injustice in construction,” Yimer Iriarte said at the start of a rush-hour march along Lake Street in Uptown. “We’re tired of seeing our brothers and sisters tired or hurt because of the way these contractors act.”

Iriarte is part of a group of local construction workers – mostly from residential projects – who began organizing with the Twin Cities-based worker center CTUL two years ago.

CTUL’s efforts to document abuses in the industry led to the arrest of a local construction contractor in September on criminal charges. The case exposed serious problems – wage theft, dangerous working conditions, labor trafficking – that are rampant in the industry’s web of contractors and subcontractors, workers allege.

Yimer Iriarte speaks at a rally before the march, alongside CTUL’s Veronica Mendez Moore.

Iriarte said he experienced wage theft and trafficking firsthand when a contractor refused to pay him and other immigrant workers for their labor.

“We were promised so many things that didn’t happen, and in the end we were threatened with immigration,” Iriarte said. “And I know it’s not just me.”

To raise industry standards, CTUL’s construction members are taking cues from local janitors, who recently won major improvements in the retail cleaning industry after a 6-year-long fight.

Janitors won by pressuring big-box chains like Target and Best Buy to sign Responsible Contractor Agreements, guaranteeing janitors employed by the store’s cleaning contractors have safe working conditions and a voice on the job.

Construction workers want large developers in the Twin Cities area to meet a similar demand: participation in the “Dignity and Respect Standards Council.” The council establish higher standards in the industry, and it would  create a process for monitoring construction sites to ensure all subcontractors are in compliance.

Workers first target is a big one: Lennar Homes. A nationwide firm, Lennar is the Twin Cities’ largest home-builder, and it stands to gain even more work under the City of Minneapolis’ ambitious new rezoning initiative, Minneapolis 2040.

According to CTUL, Lennar has seen a litany of reported abuses on its projects locally and across the country, including the labor trafficking charges filed in Hennepin County earlier this year and a jobsite fatality in Lakeville in 2016.

During the march along Lake Street, CTUL members stopped at a Wells Fargo branch to point out the bank’s history of lending to Lennar despite the allegations stemming from its projects.

And the march involved a bit of street theater. Actors performed an updated take on a centuries-old tradition throughout Spanish Central America, “Las Posadas.” The story alludes to Mary and Joseph’s difficult journey from Nazareth to Bethlehem in search of a warm place to stay the night, with an emphasis on its moral and political message.

The march drew over 100 people, including representatives of the Carpenters, Laborers and other Building Trades unions, who stood in solidarity with CTUL members.

Filed Under: Organizing Tagged With: , , , , , , , ,

St. Paul workers, families keep pressure on as council takes up $15

October 19, 2018 by

Mayor Melvin Carter snaps a selfie with advocates for a $15 minimum wage outside City Hall.

It felt like a victory celebration as working people and their families rallied with elected officials outside City Hall Wednesday, just minutes before council members formally introduced an ordinance that would put St. Paul on track to a $15 minimum wage.

The finish line may be in sight, but Mayor Melvin Carter had a warning for supporters.

“We’re not done yet,” he said, listing the procedural hurdles and public hearings the ordinance faces before it can receive a vote. “But I’ve committed myself and our city to passing this into law by the end of the year, and I remain committed. And I want to say thank you to all of you for being engaged.”

Carter was speaking to union members, tipped workers and other low-wage workers who have been pushing for action in St. Paul since Minneapolis adopted its ordinance over a year ago. At the rally, they stood together in support of the proposed ordinance, unveiled a week earlier by Mayor Carter.

Co-authored by five of the council’s seven members (Amy Brendmoen, Mitra Jalali Nelson, Rebecca Noecker, Dai Thao and Chris Tolbert), the ordinance closely mirrors recommendations of a task force that spent more than three months studying the potential effects of a wage hike and listening to workers, business owners and others who would be impacted by the ordinance.

“We have been listening, talking, debating and voting for almost a year now,” said SEIU Healthcare Minnesota Political Director Rick Varco, who co-chaired the task force. “Now is the time to act.”

Action by the council would raise wages for an estimated 56,000 people – nearly a third of the city’s workforce – who earn less than $15 an hour.

Rosalio Vences, a janitor at a Target store in St. Paul, is among them. The cleaning contractor he works for has raised his pay just once – from $11 to $11.25 per hour – in the nearly three years Vences has been on the job. Lately, he said, the boss has been cutting hours off his scheduled shifts, too.

“But they always give us a raise in workload,” Vences said. “We always have more work to do, faster and faster.”

With the extra money he’d be earning with a $15 minimum wage, Vences could afford to move out of the room he rents in someone else’s home and get his own place. “With our current wages, we can’t afford to pay our rent and our bills,” he said.

Erin Lynch, a server at a full-service restaurant in St. Paul, speaks at a press conference staged by supporters of a $15 minimum wage with no tip adjustment.

Servers like Erin Lynch also praised the proposed ordinance, which would not carve out a lower wage for workers who earn tips. The question of whether to include a so-called “tip adjustment” has been a focus of debate, but Lynch said earning a livable wage makes servers more likely to stand up to harassment from customers and managers who “wave the prospect of a tip over your head.”

Restaurant workers experience sexual harassment on the job more frequently than workers in any other industry. A 2014 report by the Restaurant Opportunities Center United found 9 of 10 women working in the industry had experienced sexual harassment on the job, and so had 7 of 10 men. Sexual harassment is more prevalent, the report found, in states that allow servers and bartenders to be paid less than minimum wage.

“It’s really demoralizing that me and my coworkers have to put up with this stuff every day, to varying amounts,” Lynch said. “A $15 an hour minimum wage would alleviate this and would lessen my dependence on tips. It puts me in a better position to stand up for my dignity.”

The ordinance, as currently drafted, would take effect in 2020, and would affect employers differently based on their size.

Large businesses – those with more than 100 workers – would be required to pay $15 per hour by July 1, 2023. Workers at small businesses would reach $15 by July 1, 2026. Microbusinesses – those with five or fewer employees – would have two more years to phase in the full minimum wage, which would adjust annually for inflation.

The ordinance also would put the city’s own employees on track to earn $15 by July 1, 2022.

The Met Council’s most recent analysis of census data shows 40.8 percent of St. Paul residents live in poverty, a higher rate than any other metro-area community.

“We’re so grateful to the mayor for having listened to our words to help bring change with our employers,” Vences, a member of the Twin Cities worker center CTUL, said. “For so long we’ve been lifting our voices to say we need a raise to $15 an hour.”

Filed Under: Organizing, Politics Tagged With: , , , , , , , , , ,

Kip Hedges: Labor has a big stake in St. Paul’s fight for $15

August 1, 2018 by

Former Delta baggage handler Kip Hedges was fired for speaking up in favor of $15 for all workers.

There’s no question, the labor movement is under severe attack. The Janus decision is only the latest example of damage inflicted on workers by the billionaire class of the United States and their political allies.

How can we rebuild? How can we, as a union movement, be relevant to millions of workers who know little of unions? Because of nearly four decades of defeats, retreats and attacks on labor, many of these workers have never been in a union and don’t have family members or friends who have been in unions.

The fight for a $15 minimum wage must be part of any fightback strategy. Why? First, because using 15 as part of a union organizing strategy can pay real dividends. At MSP airport the demand for $15 was a key part of the Service Employees International Union’s ability to bring 700 aircraft cleaners and cart drivers into the union. Like many positions that had once been career jobs, outsourcing had turned these into minimum-wage jobs. When SEIU Local 26 became a champion of $15 for all airport workers, aircraft cleaners started to pay real attention to the union.

Another string of impressive organizing victories came when United Food and Commercial Workers Local 653 used the demand for $15 to win union representation for hundreds of grocery workers at Minneapolis food co-op stores.

Centro de Trabajadores Unidos en la Lucha (CTUL), a Twin Cities worker center, has been at the forefront of the Fight for 15. It has effectively organized to bring hundreds of mostly immigrant workers into the labor movement. This is, in no small part, because workers saw CTUL fighting alongside them for higher wages and dignity even before they were in a union.

The second reason why 15 must be part of rebuilding the union movement is because we must break out of our isolation. The labor movement was at its strongest when we took on fights that benefited the entire working class, like the 8-hour day, unemployment insurance, workers compensation, social security and an end to child labor. By leading these fights, unions brought many unorganized workers into the labor movement.

Too often we have moved away from the philosophy of solidarity, the idea of social movement unionism. Instead of fighting for Medicare for All, the fight becomes for better health insurance for just our members. Instead of fighting for real increases in Social Security, we fight just for our pensions or an increase in company contributions to our 401(k).

We know from years of experience how this ends up. Our employers are able to isolate us from other workers and then pick us off. If the working class as a whole is drowning, it’s only a matter of time before the rising waves wash union workers away as well, no matter how skilled we are or how secure we feel.

If we are able to attract and become relevant to young workers, workers of color, immigrant workers and workers on the low end of the pay scale, then unions actually have a bright future. The fight for 15 is a key part of that future.

Here in St. Paul we expect that the City Council will be voting on an ordinance to raise the minimum wage by late November. We still face a fight over carve-outs like a lower minimum wage for tipped workers (often called a tip penalty), an expanded youth training wage and a lower minimum wage for personal care attendants and other workers. We are demanding One Fair Wage for all St. Paul workers, no carve-outs or exemptions.

Unions and union retirees have been at the center of the Fight for 15 in St. Paul. Union members always show up strong at 15 rallies and turn out for public listening sessions. There will be another opportunity to have an impact on Saturday, Aug. 4, during the next minimum wage listening session sponsored by the city. It’s scheduled from 9 to 11:15 a.m. at the Metropolitan State University Student Center, 690 East Seventh Street.

Please come to support One Fair Wage of $15 for St. Paul!

– A former baggage handler fired by Delta for his support of 15 for all airport workers, Hedges remains active in local organizing campaigns, including the 15 Now campaign and the union drive at Delta Air Lines.

Filed Under: Labor Voices Tagged With: , , , , , , , ,

Four takeaways from the new report on raising St. Paul’s minimum wage

February 22, 2018 by

Jess Manthe, a longtime retail worker in St. Paul, speaks at a rally outside council chambers, calling poverty wages a barrier to the middle class for too many people in the city.

Low-wage workers listened as the author of a report on raising St. Paul’s minimum wage summarized her findings at yesterday’s City Council meeting. Then they put council members on notice.

“Now is the time for the city to take a stand and get us the wages we need,” personal care attendant Daniel Maddox, a member of the low-wage worker center CTUL, said during a brief rally outside council chambers.

Council members at the meeting indicated they plan to move at a more deliberate pace. Council President Amy Brendmoen said the plan is to “have an ordinance in front of us by fall.”

What that ordinance should look like is already the subject of a heated debate, as the report presented yesterday confirmed.

The nonpartisan Citizens League prepared the report to give council members an overview of available data and research on the topic, and to identify which constituencies are likely to be impacted by a higher minimum wage. It’s available on the Citizen League’s website.

Here are four takeaways from the report and Citizen League Executive Director Pahoua Yang Hoffman’s presentation to the Council yesterday.

1. Despite an unemployment rate of 3.1 percent, too many working people and families in St. Paul live in poverty.

The Met Council’s most recent analysis of census data shows 40.8 percent of St. Paul residents live in poverty, a higher rate than any other metro-area community. And areas of concentrated poverty are spreading within the city, a trend Ward 7’s Jane Prince called “disturbing.”

Jess Manthe, a longtime retail worker in St. Paul, called poverty wages a barrier to the middle class.

“I have huge amounts of (student) debt that I’ll carry with me for the next 25 years,” she said. “Our unlivable wages mean my husband and I aren’t going to be able to buy a house, and having kids is completely off the table. I think it’s time for St. Paul to invest in its workers.”

2. People working for poverty wages know their paychecks don’t get bigger by accident or their bosses’ goodwill.

In preparing the Citizens League’s report, Hoffman met with more than 100 “stakeholders.” In her presentation to the Council, she singled out the story of a retail janitor who, after 14 years on the job, has seen her wages increase from $7.25 to $10.75 per hour.

The state minimum wage has increased from $6.15 to $9.65 over the same time frame. “She wanted me to let you know that if not for a mandate, she may never get to $15,” Hoffman said.

3. The janitor working for $10.75 after 14 years on the job is not a statistical outlier. In St. Paul poverty wages affect workers of all ages.

Stereotypes that cast minimum-wage earners as students working around classes or retirees keeping themselves busy are bogus. The Citizens League report cites a 2016 study by the Roy Wilkins Center for Human Relations and Social Justice, which considered the impacts of a minimum-wage increase in Minneapolis and in Hennepin and Ramsey counties.

“There is no distinction between ages where there might be in other cities, where low-wage workers might be younger or older,” Hoffman said.

Tipped workers packed council chambers to hear the report on raising St. Paul’s minimum wage.

4. Whether it’s a tip penalty or a training wage, interest groups will attempt to poke holes in St. Paul’s minimum wage.

The Citizens League report reflects a split within the restaurant industry over the tip penalty, which allows employers to pay a sub-minimum wage as long as workers make up the difference in tips. Working people on both sides of the issue showed up in council chambers yesterday.

Servers who support a tip penalty say a lower minimum wage is vital to their employers’ profitability, as well as preservation of a tipping culture. Opponents argue the tip penalty opens the door to wage theft, as some employers fail to make up the difference between workers’ tips and the minimum wage.

Research also shows tip penalties contribute to a culture of sexual harassment in the restaurant industry. A study released earlier this month found female tipped workers in states like Minnesota experience report sexual harassment at half the rate of their counterparts in states with a lower minimum wage for tipped workers.

Catherine Olsen, a tipped worker at a small business in St. Paul, called on city officials to pass an ordinance lifting all workers to $15 per hour, with no tip penalty and no youth wage. “St. Paul has an opportunity to act now and act fast – and to not leave anybody behind,” she said.

Filed Under: Organizing, Politics Tagged With: , , , , , , , , , ,
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