Safety expert weighs implications as job market shifts ‘from stability to precariousness’

Dr. John Howard

Dr. John Howard

The nature of work is changing dramatically, and it’s creating new challenges – and pitfalls – for regulators charged with protecting workers’ health and safety.

The highest-ranking official at the National Institute for Occupational Safety and Health called on academics gathered Wednesday at the University of Minnesota to dig deep into the implications of emerging economic trends like robotics and agency-based, temporary employment, as well as the potential use of “big data” to make workplaces safer.

“The government built all of our social-protection laws based on an old paradigm,” Dr. John Howard told about 75 professionals gathered at the Midwest Center for Occupational Health and Safety’s annual symposium. With a greater share of the U.S. workforce moving “from stability to precariousness,” he added, “the normal employer-employee relationship has eroded.”

Howard, who also serves as administrator of the World Trade Center Health Program, covered a wide range of issues and referenced a trove of published research in his 45-minute address.

No one knows exactly how many U.S. workers are employed in temporary jobs or other “non-traditional” arrangements, Howard said. But it’s definitely on the rise.

Research shows the 21st-century job market is characterized by uncertainty and ambiguity. Workers increasingly settle for short-term “gigs” rather than career-path jobs. Many find themselves at the mercy of sophisticated, “Just-in-Time” scheduling software that makes their shifts irregular and paychecks unpredictable. Layers of subcontractors and agencies often create murky managerial relationships.

In many ways, the emerging labor market looks increasingly like the construction industry, where tradespeople bounce from jobsite to jobsite and from employer to employer. That means regulators, Howard said, ought to cast a wider net for wage theft, misclassification of workers as “independent contractors” and other violations that plague construction work.

But worker-protection laws written in the mid-20th century aren’t always applicable in the modern age, when any coffee shop with wifi can serve as an office and Google Hangouts can take the place of a conference room. “We really have another definition of a workplace, and it’s a challenging one,” Howard said.

Meanwhile, global trade and automation continue to alter the type of work most Americans do.

It’s generally accepted, Howard said, that 47 percent of existing job categories will be subject to automation in the next two decades. And experts expect about 80 percent of the workforce soon will be employed in service-oriented work – jobs, Howard said, that usually require no more than a high-school degree.

“It may not be possible now to increase productivity through education,” Howard said, acknowledging that such an assertion flies in the face of predictions offered two decades ago by proponents of NAFTA and other free-trade agreements. “Economists are finding out that the benefits of trade don’t necessarily justify its cost,” he added.

Technology is also creating opportunities and challenges when it comes to protecting workers’ health and safety on the job.

Researchers in the field of occupational health are only beginning to understand the potential of new sensory technology that provides a constant stream of data from the jobsite to safety monitors – everything from air quality to the heart rates of workers on a factor floor. The “big struggle,” Howard said, is mining that data for indicators that accidents or other adverse events might be on the horizon.

Finding those indicators could amount to a major breakthrough in worker safety – and a much-needed one as well. Research suggests the changing nature of work – the shift “from stability to precariousness,” as Howard put it – comes with some serious health and safety risks for working people.

Studies suggest temporary workers have shorter life spans than those in career-path positions. Unpredictable work schedules may also be taking a toll on workers’ mental health. And when a patchwork collection of temp agencies and subcontractors provides labor for a single workplace, site-specific safety training is often inconsistent – and sometimes nonexistent.

“Workers have a more distant relationship with the people they work with, the people who can help navigate potential hazards,” Howard said, noting that temporary workers are less likely to report potential hazards – or try using collective action to improve their working conditions.

“They work for a temp agency,” Howard said. “They feel lucky just to have a job.”

In address to union retirees, Dayton weighs in on Cretex strike, more

Gov. Mark Dayton (right) greets Minnesota AFL-CIO President Emeritus Bernard Brommer at the Minnesota State Retiree Council convention.

Gov. Mark Dayton (right) greets Minnesota AFL-CIO President Emeritus Bernard Brommer at the Minnesota State Retiree Council convention.

Addressing a roomful of union retirees in Maplewood today, Minnesota Gov. Mark Dayton recounted his morning meeting with members of Laborers Local 563 who are on strike, fighting to ensure a secure retirement of their own.

Dayton’s remarks to the Minnesota State Retiree Council’s 17th convention came on the heels of a dialogue with workers who have been walking the picket line outside the Cretex concrete plant in Shakopee since June 19. About 40 workers went on strike after the company refused to budge from its demand they give up the defined-benefit pensions many had been self-funding for decades.

Minnesota AFL-CIO President Shar Knutson introduces Gov. Dayton at the retirees' convention.

Minnesota AFL-CIO President Shar Knutson introduces Gov. Dayton at the retirees’ convention.

One Cretex worker, the governor recalled, had “tears streaming down her face” as she explained what losing her pension after 20 years of service to the company would mean for her family’s quality of life. Dayton did not identify Cretex by name, but said it was disheartening to see any company “take advantage of the fact there really isn’t a recourse for working men and women” when management decides to cut workers’ benefits.

The governor also said he planned to reach out to company executives for their side of the story, and that he hopes to see workers return to their jobs soon.

Tim Mackey, Local 563’s business manager, confirmed the meeting with Dayton, saying he was hopeful it would be a step toward resolution of the 3-month labor dispute.

“Thanks to this meeting with the governor, we can hopefully make further progress and get back to work,” he said.

Leaders from Operating Engineers Local 49 also attended the meeting with Dayton. Cretex employs 49ers at several of its facilities, and their current contract with the company is set to expire Dec. 31. That means 49ers are “on deck,” Business Manager Glen Johnson said.

“We don’t intend on allowing Cretex to take our members’ pensions away,” Johnson added. “We’re ready to fight for our members’ retirement too.”

The rest of Dayton’s remarks to retirees focused on politics. Highlights included:

• Jobs numbers. Dayton pointed to a report showing Minnesota had seen the fifth-most economic growth of any state last year. He also trumpeted the most recent state jobs report, which shows the state has regained all the jobs it lost during the Great Recession. About 122,000 Minnesotans who were unemployed when he took office, Dayton said, have jobs today.

“We’ve got 152,000 Minnesotans unemployed,” Dayton acknowledged. “We’ve got a lot more to do, but we’re making progress.”

• Minimum wage. A labor-backed coalition of groups announced plans during the State Fair to push a bill that would raise the state’s minimum hourly wage to $9.50 by 2015. Dayton said he supports such a bill, pointing out that the state’s current minimum wage of $6.15 per hour is the lowest among Upper Midwest states.

“What does that say about Minnesota and our commitment to working men and women?” Dayton said. “I believe we want work to pay.”

• Union organizing. Dayton said he was disappointed with a federal appeals court’s ruling that temporarily blocks a law passed last spring allowing child-care providers who receive state subsidies to vote on forming a union.

The legal challenge was bankrolled by the National Right to Work Legal Defense Foundation, which represents providers who oppose the union. Dayton decried the corporate-backed legal fund as an “extreme right-wing element in this state and this country” that was fighting to keep workers from deciding for themselves whether to form a union.

Rather than fighting to strip them of their rights, Dayton added, “we should be embracing” the people who want to improve wages, benefits, working conditions and training opportunities for workers in critical fields like home health care and child care.

• Health insurance exchange. A new federal report shows MNsure, the new health insurance exchange created as part of the federal health care overhaul, will offer the lowest rates of any state in the nation. “That’s something to be incredibly proud of,” Dayton said.

Dayton also thanked AFL-CIO retirees – he called them “the voice of middle-class Americans who have worked hard all their lives and played by the rules” – for their work last fall to win pro-worker majorities in the Legislature. “We really moved Minnesota ahead,” he said.

Union retirees open their 17th convention with a singing of "America the Beautiful" at the Sheet Metal Workers Hall in Maplewood.

Union retirees open their 17th convention with a singing of “America the Beautiful” at the Sheet Metal Workers Hall in Maplewood.

Going against the grain, some small business owners back wage hike

Barb Johnson, owner of Lyle's Cafe in Winthrop, supports raising the minimum wage.

Barbara Johnson, owner of Lyle’s Cafe in Winthrop, supports raising the minimum wage.

Think the minimum-wage hike progressing through the Legislature is bad news for Minnesota’s small businesses? Think again.

A survey released last week indicates strong support among small business owners nationwide for raising the federal minimum wage and adjusting it annually to account for inflation.

Small business owners gathered at the Minnesota Capitol yesterday explained the surprising survey results. Barbara Johnson, owner of Lyle’s Cafe in Winthrop, said when low-wage workers see more money in their paychecks, they are more likely to spend it at local businesses like her café.

“It’s just common sense in the restaurant business that if people have more money in their pockets, they’re more likely to go out for lunch on their break or maybe take their family out for dinner once and a while,” Johnson said.

She and other business owners spoke at a press conference staged by a coalition of unions, non-profit organizations and faith groups backing a House bill that would increase the state’s minimum wage to $9.50 over three years, and tie it to inflation. The bill’s author, Rep. Ryan Winkler (DFL-Golden Valley), said 400,000 Minnesota workers would see a raise if the measure becomes law.

By participating in the event, Johnson and other small business owners would appear to flout the company line toed by powerful trade groups and business lobbyists fighting hard against Winkler’s bill. These groups claim a minimum-wage increase would disproportionately affect small businesses by forcing them to reduce their payrolls in order to absorb the added labor costs.

There’s just one problem with that argument: It’s not backed by economic research.

In a study released last summer, the National Employment Law Project found that two-thirds of low-wage workers are employed not by small businesses, but by large corporations that are highly profitable – and entirely capable of absorbing increased labor costs.

Indeed, each of the nation’s three largest low-wage employers – Wal-Mart, Yum! Brands (parent of Pizza Hut, Kentucky Fried Chicken and Taco Bell) and McDonalds – is turning profits “substantially higher” than its pre-recession levels, according to the NELP. And while they may argue it would be impossible to absorb the cost of higher wages for their lowest-paid employees, CEO pay at the three corporations remains healthier than ever.

The report, entitled “Big Business, Corporate Profits and the Minimum Wage,” concludes: “Contrary to what critics sometimes suggest, the majority of the impact of any increase in the minimum wage will … be felt by large companies and corporations rather than small mom-and-pop establishments.”

What’s more, when large employers like Wal-Mart and McDonalds raise their workers’ wages, it boosts the buying power of a group of consumers least likely – or able – to save their wages for a rainy day. The Minnesota-based JOBS NOW Coalition reports that every $1 increase in the minimum wage boosts consumer spending in the average low-wage worker’s household by $2,800 over the following year.

That’s a ripple effect felt by businesses like Lyle’s Café. “If more people are spending more money, that’s great news for my bottom line,” Johnson said.

So why all the fuss from trade groups and chambers of commerce in advance of a minimum-wage hike?

“Employers complain a lot during these debates,” John Schmitt, a senior economist with the Center for Economic and Policy Research, said during a forum on minimum wage hosted earlier this year by JOBS NOW and the University of Minnesota’s Labor Education Service.

“They say one thing beforehand, and what they do after (a minimum wage increase) is they learn to live with it,” Schmitt said. “We don’t see any decrease in employment.”