Peterson: Support candidates who will listen to workers, not billionaires

St. Paul Regional Labor Federation President Kera Peterson is pictured speaking at the 2022 MN AFL-CIO Convention.

Things are too expensive. That’s not breaking news to anyone who’s shopped for groceries or filled their gas tank lately. This economy is putting the squeeze on working people. Too many of us are living on the edge, working longer and harder for less in return and stressing over every bill, every purchase, every paycheck.

It shouldn’t be this way. The U.S. economy is growing. Corpo-rate earnings are up and so is the stock market. The S&P 500 hit an all-time high last month. American workers are more productive than ever, but our share in the economic growth that labor creates is at historic low point. An NBC News report found that the share of economic output going to workers’ pay and benefits has sunk to its lowest level since the Department of Labor started tracking it in 1947. The pie is getting bigger, but our slice is getting smaller.

None of this is happening by accident. It’s the direct result of policy choices – tariffs, healthcare cuts, foreign wars, attacks on collective bargaining – made by politicians who answer to billionaires and CEOs instead of working people. That’s why our federation of local unions is working to elect labor-endorsed candidates Nov. 3 who will put us first and hold corporations and billionaires accountable.

Here in Minnesota, we know firsthand what’s at stake in this election. We’re less than a year removed from the federal government’s shockingly violent and lawless occupation of our state in the name of immigration enforcement. Operation Metro Surge trampled on our rights, tore families apart and disrupted life in our neighborhoods, schools and workplaces. The occupation dealt an economic blow, too, costing our state 32,000 jobs, reducing economic activity – especially in the hospitality sector – and increasing security costs for local communities by an estimated $700 million.

The tragic failures of Metro Surge reflect a pattern that has repeated itself throughout Trump’s second administration. Bad ideas go unchecked by enfeebled congressional majorities and a compliant Supreme Court, and the American people pay the price – literally. Trump’s tariffs raised our cost of living, and his war in Iran has only made it worse. Minnesotans’ real wages, adjusted for inflation, fell 1.4% in the first seven months of this year. And as predicted, the “One Big, Beautiful Bill” has forced more Minnesotans to go without healthcare coverage and increased premiums for those who remain insured.

This election is our opportunity to begin putting an end to the chaos, and union members are, unsurprisingly, stepping up to the challenge. Internal poling by the AFL-CIO shows that 83% of union members are “extremely motivated” to vote in the midterms – a 10-point increase from 2022. In Minnesota, union volunteers are talking with their neighbors and co-workers, encouraging them to make their plan to vote. (You don’t have to wait until Nov. 3 if you vote early; go to mnvotes.org to learn how!) Others are signing up as election judges or training to serve as election protection volunteers.

If the challenges ahead feel overwhelming, I empathize. Instead of becoming demoralized, though, let’s focus on what is possible when after Election Day if we make our voices heard. Together, we can help deliver majorities for pro-worker candidates up and down the ballot who will support our right to bargain for better pay and benefits, fight for affordable healthcare and stop the squeeze on working families.

– Kera Peterson is president of the Saint Paul Regional Labor Federation, AFL-CIO. 

Gap between CEO, worker pay continues to widen, report shows

The nation’s top executives gave themselves far bigger raises than the average worker saw last year.

The AFL-CIO Executive Paywatch report, released earlier this month, found that the pay gap between CEOs and the rest of us widened in 2025, with companies on the S&P 500 paying their chief executives 312 times more than the median U.S. worker, a 21% increase over 2024.

The nation’s largest labor federation analyzes compensation data each year to produce the report.

While the nationwide ratio for CEO-to-worker pay last year was 312-to-1, the ratio was even greater at six Minnesota-based, publicly traded firms:

  • Life Time Group Holdings: 1,814- to-1 (CEO earned $15.2 million)
  • Target: 794-to-1 ($21.8 million)
  • UnitedHealth Group: 748-to-1 ($60.9 million)
  • Best Buy: 542-to-1 ($16.1 million)
  • Ecolab: 326-to-1 ($17.4 million)
  • 3M: 316-to-1 ($21 million)

This year, researchers chose to exclude one CEO – Elon Musk – from their calculations. Musk’s $158.3 billion pay package, which made him the world’s first trillionaire, would have skewed the data, they said.

Still, with an average pay of $22.8 million last year, other CEOs on the S&P 500 enjoyed their highest level of compensation in the three decades that the AFL-CIO has been producing the report.

That marks “a new, shameful high,” AFL-CIO Secretary-Treasurer Fred Redmond said at press conference to unveil the findings.

Redmond also noted that President Donald Trump has raked in $2.2 billion in income – much of it from crypto deals that cash in on his influence – since returning to the White House last year.

“Meanwhile, working Americans are struggling to feed their kids and pay their electric bills,” Redmond said.

Indeed, workers’ share of U.S. national income has fallen to its lowest level since World War II, per to the report.

Recent surveys show workers are increasingly concerned about affordability and economic uncertainty: 16% of U.S. adults cannot pay all their bills in full, 26% have skipped medical care due to cost and 37% do not have enough cash to cover a $400 emergency expense.

The AFL-CIO’s report takes aim at several companies on the S&P 500 where CEO pay continues to soar as an outsized share of their employees rely on public assistance, like Medicaid and SNAP, to make ends meet, including Amazon, Dollar Tree, FedEx, McDonald’s and Walmart.

Last summer, as part of the “Big, Beautiful Bill,” Trump and Republican majorities slashed federal support programs to pay for tax cuts that overwhelmingly benefit the wealthiest Americans – a sign of misplaced priorities in Washington, Redmond said.

“There’s a better economy we can build for working people,” he added. “That’s why the labor movement will continue to fight for every worker to have a union contract that begins to level the playing field and ensures they take home the share of the profit they create.”

Find the report online at paywatch.org.

Tina Smith: Fighting for working families in the U.S. Senate

Sen. Tina Smith talked with Steve Frisque, a steward with Local 722 and former local president, on the General Motors picket line in Hudson.

Tina Smith isn’t on the ballot this November, but for Minnesota’s junior U.S. senator, the reprieve from campaigning will be brief. The seat Smith won in 2018 goes back on the ballot in November 2020, and the race already has attracted a well-funded opponent in former 2nd District Rep. Jason Lewis.

For working families, the contrast couldn’t be sharper.

While Lewis’ signature achievement was a tax break that overwhelmingly benefited corporations and the wealthy, Smith has a track record of putting working people first, one that dates back to her work in Gov. Mark Dayton’s administration, when she worked closely with Minnesota’s unions.

Smith has maintained those ties in the Senate, where she’s emerged as a leading voice on the Committee on Health, Education, Labor and Pensions, advancing issues like equal pay and pension reform. She offered insight into that work last month in an interview with The Union Advocate.

UA: Your committee recently held the new labor secretary’s confirmation hearings. What did you learn?

TS: I voted against Gene Scalia for labor secretary because I felt that a person who dedicated his life to fighting for management and against labor is not the kind of leadership we need at the Department of Labor. The DOL was established as an agency that was solidly fighting for the needs of workers, whether it’s fair working conditions, safe working conditions, fair wages, a secure retirement – that’s the purpose of the DOL. To have somebody be nominated who has consistently fought on the other side of all those issues seemed to be completely wrong.

But now he’s in this role, and I will do everything I can to make sure he fulfills the promise of the DOL.

UA: You’ve been active in the fight to protect pensions since before you were appointed to the Senate. Where does that work stand, and what barriers are you running into?

TS: I’m proud to be a co-sponsor of the Butch Lewis Act, which is a practical and common-sense way to make sure people who did everything right, who paid into their pensions, who sacrificed current earnings for their retirement security aren’t penalized.

I raised this (issue) with Mr. Scalia when he came to my office for an interview, and I raised it again during the confirmation hearing. And I’m going to continue to raise it. This is an issue that is really important to the Central States Pension Plan, with upwards of 22,000 Minnesotans enrolled in it.

I tell my Republican colleagues this is an issue that’s not only affecting workers, but also affecting businesses. Many businesses also did everything right and paid into these pensions that now are facing a lot of insecurity… This is not an example of mismanagement or somebody doing something wrong. It is through no fault of anybody that these pension plans are struggling, and it’s going to be to the benefit of all of us if we step in and make sure they get stabilized.

What happens with Butch Lewis is really an open question after the work we did last year to try to come up with a compromise plan. We weren’t able to persuade the Republicans to come up with something, but we’re continuing to try to find a way. Time is of the essence.

UA: So much of the focus in Washington is on the president, whether it’s his Tweets or his scandals. Is there room for action on issues of importance to working families – like an infrastructure jobs bill – where there might be common ground?

TS: I think that the House of Representatives has demonstrated they can move forward positive legislation to improve people’s lives. They passed the Butch Lewis Act. The problem we have right now is that the U.S. Senate is the place where good ideas go to die. Mitch McConnell moves forward nominations like Gene Scalia for the DOL, but dozens of bills that would help working families sit at the doorstep of the U.S. Senate and he refuses to take them up. He doesn’t have do that, but that’s what he chooses to do. He’s turned the U.S. Senate into a personnel agency for the White House, and it’s a big problem.

UA: Minneapolis recently hosted a convention with 2,500 tradeswomen from across the country and Canada. What can Congress do to get more women into high-paying jobs like these?

TS: I had a chance to go and hang out with some of those amazing tradeswomen, and drink a beer made by a Minnesota women-owned brewery. I played hammerschlagen and did not do well, but it was great just to be with these powerful, energetic tradeswomen who are really breaking barriers every day in the building trades, fighting for their opportunity to fill those jobs. It was wonderful that the Twin Cities was able to host that group.

I know that many of my brothers and sisters in the building trades are focused on expanding opportunities for women. We need to especially support union apprenticeship programs in the building trades and other areas, and make sure that there’s lots of room for women. And I think we need to do the work in high schools and even middle schools so that young women are exposed to career opportunities, so they can find the good-paying jobs that are more than jobs, they are careers.

The other thing, since you mentioned infrastructure, I remember the work I did when I was lieutenant governor to get the new Vikings stadium built, and the large number of women trades members who participated on that work site. That’s just one example of the kind of big infrastructure projects we ought to be funding and supporting because they make our country more competitive, and they create such great jobs.

UA: You’ve worked closely with organized labor going back to your time in the Dayton administration, when we watched the tide turn for unions in Wisconsin. That pendulum has swung back. Unions have never been as popular as they are now. Why do you think that is, and what can federal lawmakers do to seize that momentum and help more people win a voice on the job?

TS: Wherever I go, when I’m talking to people, I remind them of the contributions organized labor has made. Whether you’re a union member or not, if you enjoy a weekend off, thank a labor union. If you enjoy overtime or a safe pension, thank a labor union. If you work in a safe job with good working conditions, thank a labor union – and remember the 150 who died in the Triangle Shirtwaist fire.

One of the challenges we have in this country is there has been a concerted, coordinated effort to weaken organized labor. You see it in so-called right to work laws. You see it in the challenges and barriers that have been thrown up to stop people who want to come together and organize for better wages and working conditions. And, I think, as people become more aware of those challenges, we become better able to fight back.

Last, I’ll say the blatant inequity in CEO salaries, compared to the wages regular workers are making, is becoming more and more apparent. We were talking about this … while I was walking the picket line with UAW workers. The CEO of General Motors took home $22 million in total compensation last year, yet UAW workers are fighting to get rid of this two-tiered wage system, which has people working side by side on the line and the non-legacy or temporary worker is making a fraction of what the long-term worker makes? That’s just wrong. And I think people are ready to rise to the occasion and fight back.

Unions gaining public favor, losing ground in workplace

Union members are becoming increasingly scarce in the U.S. labor force. It’s a trend that continued in 2016, when union density fell from 11.1 to 10.7 percent of the total workforce, according to federal report issued in January.

Unions’ demise has assumed an aura of inevitability. So when the Bureau of Labor Statistics released its annual report on unions, media outlets mostly yawned. The headline – “Union membership dips to lowest point in recent history” – showed up in the cable-news crawl, as a one-off tweet or buried inside the Business section.

Four days later the nonpartisan Pew Research Center released results of a different survey, showing more Americans – roughly six in 10 adults – view unions favorably than at any time in the last 15 years. Young people, in particular, hold favorable views of unions – three-quarters of those ages 18 to 29, according to the Pew report.

How can union membership be declining while unions’ popularity is surging? Why aren’t more people forming unions?

Labor experts and union organizers say the seemingly contradictory trends illuminate just how challenging the process of organizing unions is, particularly in an economy that looks little like it did when U.S. labor laws were drafted 80 years ago. But experts also say the numbers don’t reflect non-traditional organizing campaigns that have picked up in recent years, many of which are yielding improvements for working people and, more broadly, helping the labor movement stay relevant.

“I feel like we’re at a moment of pretty dramatic change where there needs to be a different model, a different way of doing things,” Monica Bielski Boris, director of the University of Minnesota’s Labor Education Service, said. “Unions were a pretty important part of changes that led to our current (labor laws) in the 1930s, and I’m hopeful they will also be an important part of that happening again.”

People like unions!

Pew’s survey results, which showed a remarkable, 12-point uptick in unions’ favorable rating in less than two years, don’t surprise Cat Salonek, who has worked 10 years as a union organizer, now locally with the Communications Workers of America and the Newspaper Guild.

Being slighted or disrespected at work, she said, is a near-universal experience among working people, and most of the time they feel powerless to do anything about it. Unions appeal as a way to take power back from their bosses.

“The No. 1 reason people want to form a union is dignity and respect in the workplace,” Salonek said. “You might think it would be pay – and it’s a close second – but the No. 1 reason is they’re sick and tired of being sick and tired. Most people really want a union because they’re being treated so badly.”

The petty grievances have a way of adding up, Salonek explained. One group of workers reached out to her after management, responding to their repeated requests for a water cooler, finally gave in, but refused to provide cups. Another group decided to organize after their boss removed the break-room table. “They were so outraged they drew a chalk outline on the carpet of the floor where the table used to be,” she said.

Retail and health care workers approach St. Paul-based United Food and Commercial Workers Local 1189 with concerns about unpredictable schedules and paid time off, organizing director Abraham Wangnoo said. “People with young families want to be able to see their kids’ sporting events, to plan their lives.”

That’s not to say rising income inequality and corporate power aren’t behind renewed interest in unions, too. Young workers were particularly “drawn into that analysis of corporate power and wealth” put forth by Bernie Sanders’ presidential campaign, Bielski Boris said. “Unions were seen as part of a solution to deal with those problems.”

“They realize not every person is going to be the CEO of a company,” Wangnoo said of young workers. “They have to stick together.”

Pro-union Jimmy John’s workers picketed outside a Minneapolis store in 2011. (file photo)

Broken system

Perception isn’t the problem unions face, organizers and experts say. A broken system is.

In 2011, after their repeated requests for paid sick days fell on deaf ears, workers at several Jimmy John’s sub shops in the Twin Cities decided to unionize. Their scrappy, upstart effort drew enough support to prompt the National Labor Relations Board to conduct an historic union election in the union-free world of fast food.

The franchisee, MikLin Enterprises, responded with a campaign intended to scare its 170 employees from supporting the union. MikLin fired six workers active in the campaign, a move that sapped momentum from the organizing drive. Workers voted 87-85 against a union.

The six workers filed complaints with the NLRB, arguing MikLin had fired them in retaliation for exercising their legally protected right to engage in union activity. One year later, an administrative law judge sided with the workers, but MikLin filed the first of a series of appeals that ended, finally, five years after the organizing election, when a federal appeals court ordered the six workers reinstated to their former jobs.

But by that time, as documented in a Huffington Post report, all six workers had long since moved on to new careers, from computer programming to teaching. The idea of going back to fast-food work was laughable, but it laid bare the challenge working people face when they organize a union.

“Not only is the process very cumbersome, the penalty for employers who engage in bad behavior during an election, including firing people, has never been very real,” Bielski Boris said.

What happens after an employer gets wind of union organizing in their shop?

“They hold one-on-one intimidation sessions, use coworkers to apply pressure, spread misinformation about strikes, about dues,” Wangnoo said. “It is hard to imagine, to understand the pressure it puts on somebody who has kids and a life they want to live and bills they have to pay. It’s terrifying.”

Dwindling resources

Unions’ high favorability rating is playing out in NLRB elections nationwide, which unions won at a rate of about 70 percent from Oct. 1, 2015, through December 2016. But the very number of organizing elections taking place – just over 100 per month across the country during that span – illustrates how hard it is for workers to rally enough support to call for a vote. (Most organizing elections are held by the NLRB, but not all. Public-sector elections in Minnesota, for example, are conducted by the Bureau of Mediation Services.)

Monica Bielski Boris (L), shown speaking at a press conference last year, holds a PhD in industrial relations. (file photo)

Employers’ sophisticated, anti-union campaigns are one reason organizing drives don’t often reach the threshold for an NLRB election. Another, Bielski Boris said, is the level of resources it takes to conduct an organizing drive – resources unions are finding increasingly scarce.

Outsourcing and automation, Bielski Boris said, have decimated sectors of the economy, namely manufacturing, rich with union density. Shrinking membership, combined with anti-worker “Right to Work” laws, have forced many unions to choose between responding to workers who want to organize and providing service to existing members.

“It’s incredibly expensive for unions to organize,” Bielski Boris said. “The process is so arduous that even unions who want to organize have some trepidation.”

A changing economy, a new organizing model

Ironically, while working people crave the stability and security a union contract provides, the economic forces at play in destabilizing the workplace are, themselves, barriers to organizing unions.

As more workers settle for short-term gigs – think Uber and Lyft – rather than work in traditional shops, many find themselves labeled as independent contractors rather than employees. And labor law says working people must share a common employer in order to join together in a union.

Salonek, who works with language interpreters and ESL teachers, said independent contractor status “voids those workers from NLRA rights.” If they want to unionize, they must first get reclassified as employees, “and then the employer knows you want a union before you even start an organizing campaign.”

In response, CWA and other unions are exploring alternative union structures that reflect the way working people built power before the NLRA, Salonek said, including professional associations and guilds that advocate for workers in a specific industry. The throwback model comes with several challenges, though. Laws that prohibit price fixing prevent workers’ associations from setting wage floors, for example.

Unions also are exploring new benefits to membership that might attract independent contractors, freelancers and, in Right to Work states, dues payers. They include health insurance plans for workers who bounce from gig to gig, malpractice insurance, professional development and more.

Building Trades unions offer a glimpse of how unions might enhance their appeal to “gig-economy” workers. “You belong to a union and it helps you train for employment and connect with employers, and it sets some baseline standards in the industry,” Bielski Boris said. “They offer a model where transitional employment is built into the DNA of how they operate.”

Reports of unions’ demise as a share of the workforce also fail to reflect successful organizing taking place outside of traditional collective bargaining, including the Fight for 15 and expansion of worker centers.

In the Twin Cities, the worker center CTUL has given retail janitors and fast-food workers a collective voice on the job. Last year, CTUL’s organizing effort resulted in a new union of workers in an industry – retail cleaning – rife with wage theft, as temp agencies and subcontractors cut corners to provide big-box chains with the lowest bid.

The historic victory provides a glimmer of hope for Bielski Boris that unions might restore more than their Pew survey numbers.

“This is an opportunity to figure out what’s possible for labor,” she said. “If working people can see the value unions play in challenging the system, there’s some hope. But if we allow grief to take hold, we’re most certainly going to end up with the results we fear most.”

Organizing drive pays off for big-box janitors with landmark first contract

Retail janitors celebrated recognition of their union last fall after a six-year campaign.

Retail janitors celebrated recognition of their union last fall after a six-year campaign.

What’s the value of a union contract? For nearly 500 retail janitors in the Twin Cities, who made history last year by forming the industry’s first metro-wide union, it’s a cool $4.5 million in wage increases and paid time off over the course of their new, three-year contract.

Local 26 of the Service Employees International Union, which represented the janitors who clean big-box stores like Best Buy, Target, Macy’s and others in negotiations with cleaning subcontractors, announced the landmark agreement in a press release today, calling it a “path forward for working families” to combat rising income inequality.

“While working people are under attack right now from the billionaires in charge of our country, we are showing that we can win if we stick together and fight,” said Maricela Flores, an employee of Carlson Building Maintenance who cleans the Target in Shakopee.

The “vast majority” of janitors in the bargaining unit are people of color, according to Local 26, so the contract’s gains will help combat Minnesota’s yawning disparities between white workers and workers of color.

The contract goes into effect immediately, and many union members will see their hourly wages jump from $9.50 to $11. They include Lizbet Vega Lopez, a Carlson employee who has cleaned the Cub Foods in Brooklyn Park for 12 years.

“This was not an easy fight, but I am so glad we stuck together and now have a union contract that moves us forward,” Lopez said. “I hope others will see our fight and realize that no matter how difficult the challenge may be, you can win positive changes if you are willing to stand up to those in power.”

In addition to wage increases and PTO, workers won up to three weeks of vacation time, stronger workplace protections and job security, and guidelines for workload conditions when covering absences.

Retail janitors’ new union grew out of a six-year campaign facilitated by CTUL, a Twin Cities worker center. Workers and community allies pressured corporations like Target and Best Buy to take responsibility for low wages and unsafe working conditions inside their Twin Cities stores by signing onto a “Responsible Contractor Policy.”

The campaign continues at Kohl’s, Home Depot and other big-box stores.

“We are contracted to clean the stores of some of the biggest corporations in the world, so it was a big win just to get to the negotiation table with our employers, and now we have won gains that cannot be taken away,” Lopez said. “We weren’t waiting on Trump’s empty promises and scapegoating. We decided to fight back and win changes for ourselves, and hope others do too!”

New report sheds light on ‘state of the unions’ in Minnesota

Co-authors of "The State of the Unions 2016," Monica Bielski Boris (L) and Jill Manzo, appear at a State Fair press conference with MN AFL-CIO Secretary-Treasurer Julie Blaha (R).

Co-authors of “The State of the Unions 2016,” Monica Bielski Boris (L) and Jill Manzo, appear at a State Fair press conference with MN AFL-CIO Secretary-Treasurer Julie Blaha (R).

 

Income inequality is on the rise in Minnesota, and disparities between white workers and workers of color continue to widen. Unions are key to reversing both of those trends, according to a new report unveiled just in time for Labor Day.

Co-authored by four researchers, “The State of the Unions 2016” takes a deep dive into economic and employment data to determine the impact of collective bargaining on Minnesota’s economy, workforce and communities.

The findings, Minnesota AFL-CIO Secretary-Treasurer Julie Blaha said during a press conference today at the Minnesota State Fair, confirm “what union members already know” – that a union job is, for most working people, a ticket into the middle class.

The authors describe unions as “one of the most effective anti-poverty institutions in Minnesota,” noting that the state’s union members enjoy an 11 percent wage premium, on average, over their non-union counterparts. That “union effect” is even more pronounced among Minnesota’s workers of color, boosting union members’ earnings by more than 17 percent.

Minnesota has drawn accolades from national publications for its current business climate and skilled workforce, and the state’s economy has outperformed the nation as whole since the Great Recession ended in 2009.

But disparities between the state’s white workers and workers of color are among the worst in the nation. In 2012, people of color working full-time jobs were three times more likely to live in poverty than their white counterparts, a divide that has increased steadily since 1980.

KerryJo Felder, member of the Minneapolis-based People of Color Union Members caucus, acknowledged there is no silver-bullet solution to Minnesota’s racial disparities, but “one of the most effective ways to reduce racial income inequality is for non-white workers to continue organizing,” she said.

“When your wages and benefits are clearly spelled out through a union contract, that reduces the opportunity for discrimination,” Felder said. “Many contracts also include procedures for getting promoted on the job, giving everyone equal access to higher-paying positions.”

The union effect is critical, too, for women and veterans in Minnesota. One in five veterans working in Minnesota is a union member, one of the report’s authors, Monica Bielski Boris of the University of Minnesota Labor Education Service, said.

Efforts to weaken collective bargaining, she added, have a negative impact on women, veterans and people of color working in Minnesota. That includes political attacks like Right to Work and union-avoidance campaigns run by employers.

Recent studies also indicate that attacks on collective bargaining depress not only union members’ wages, but all workers’ wages. Nonunion workers benefit from pay and benefit standards set by union employers in their industry, researchers from the Economic Policy Institute found in a report released earlier this week.

As an example, Bielski Boris pointed to UPS, where drivers are members of the Teamsters union, and non-union FedEx, which offers its drivers similar wages and benefits – both to attract qualified workers and to discourage union organizing.

When unions are strong, Bielski Boris said, “non-union employers have to compete with union employers (for qualified workers), so we see an uptick in wages.”

“The State of the Unions 2016” was authored by researchers from the Midwest Economic Policy Institute, the University of Minnesota Labor Education Service, the Illinois Economic Policy Institute and the University of Illinois.

Minnesota state, local taxes fairer than most, report finds

web.ITEP-1

(Institute on Taxation and Economic Policy graphic)

Minnesota’s tax structure is among the fairest in the country, according to the results of an annual analysis of state and local tax systems released today by the nonpartisan Institute on Taxation and Economic Policy.

The report, “Who Pays,” looks at how states generate tax revenue – and how much it costs taxpayers at different income levels.

In Minnesota the wealthiest 1 percent of earners, with more than $498,000 in annual household income, pay 7.5 percent of their income, on average, in state and local taxes. That’s a lower rate than any other income bracket in the ITEP’s report, including:

  • The rest of the top 20 percent of Minnesota earners, with household incomes between $102,000 and $498,000. On average, they pay about 8.5 percent of their income in state and local taxes.
  • The lowest 20 percent, with less than $24,000 in annual income, who pay an average tax rate of 8.8 percent.
  • The middle 60 percent, with earnings between $24,000 and $102,000, who pay an average tax rate of about 9.7 percent.

Although middle- and low-income people in Minnesota pay more of their income in state and local taxes than the state’s highest earners, the same is true everywhere in the U.S. The good news for Minnesota is the gap between what middle- and low-income people pay and what wealthy people pay is smaller than the gap in 44 other states.

In some states, the report found, the poorest 20 percent of taxpayers pay more than double the effective tax rate paid by the richest 1 percent of taxpayers. Washington is the country’s most regressive state, taxing the poorest residents at 16.8 percent and the top 1 percent at just 2.4 percent.

Why does it matter if state and local taxes ding lower-income families more than upper-income ones? In addition to being a matter of basic fairness, regressive tax structures contribute to growing income inequality in the U.S., which has reached a level not seen since before the Great Depression.

“In recent years, multiple studies have revealed the growing chasm between the wealthy and everyone else,” ITEP Executive Director Matt Gardner said in a press release accompanying the report. “Upside down state tax systems didn’t cause the growing income divide, but they certainly exacerbate the problem.”

Why are state and local tax systems unfair across the board? According to the ITEP report, it’s mostly because these governments tend to rely more heavily on sales taxes to raise revenue than income taxes.

Minnesota’s tax structure is less regressive than most other states, according to “Who Pays,” in part because of its graduated tax structure, which assesses higher rates to higher income levels. Gov. Mark Dayton and DFL majorities in the Legislature raised taxes on the wealthiest Minnesotans to address a budget shortfall two years ago.

The report also praised Minnesota’s sales tax exclusion for groceries and its Working Family Credit, increased by Dayton and DFL majorities last year.

The state’s comparatively high sales tax rate – on tobacco, in particular – hits lower- and middle-income earners harder than the wealthy, the report found.

Download the complete report here.

Income on the rise in Dayton’s Minnesota, falling in Walker’s Wisconsin

UA layout_UA layoutJeff Johnson, the Republican nominee for governor, provided a glimpse of his leadership style May 15, telling a Tea Party group he would “go all Scott Walker on Minnesota” if elected Nov. 4. So what is it about Walker’s Wisconsin that Johnson believes is worth replicating?

To answer that question – and to get a sense of what a Johnson administration might mean for union families – we’re analyzing the different approaches taken by Walker and labor-endorsed Minnesota Gov. Mark Dayton on four key issues over the last four years:

[Related: A governor who will ‘go all Scott Walker’ on Minnesota? No thanks, unions say.]

Wages and Economic Security. Dayton and DFL legislators earlier this year raised Minnesota’s minimum wage for the first time in a decade, and they passed the Women’s Economic Security Act, a nation-leading initiative to eliminate the gap between what women and men earn for doing comparable work.

Johnson has sent mixed messages about whether, if elected, he would move to block scheduled increases in Minnesota’s minimum wage in 2015 and 2016. But he has pledged to roll back a provision of the law that would trigger automatic increases, tied to the rate of inflation, beginning in 2018.

That stance puts Johnson in line with Walker’s Wisconsin, where median household income has fallen in each of the last four years – and by 5.1 percent since 2009, according to the American Community Survey. Data released last month by the Census Bureau shows Wisconsin’s median household income fell by 0.4 percent between 2012 and 2013, to $51,467.

Minnesota, meanwhile, saw a 1.6 percent increase in household income between 2012 and 2013, to $60,702. It marked the state’s second consecutive year of significant income growth.

Given the growing disparities between the two states, it’s no surprise workers in Wisconsin are looking west with envy.

“Wisconsin is dead last in the Midwest in job growth,” Wisconsin AFL-CIO President Phil Neuenfeldt said. “Wisconsin is missing out on economic opportunities and growth because Gov. Walker refuses to raise the minimum wage for workers or accept federal funds to expand health care access. Wisconsin workers make $5,000 less a year than Minnesota workers. Wisconsin workers can’t afford four more years of Gov. Walker.”

And Minnesota workers can’t afford a governor who will use Wisconsin as a model.

“Democrats know that valuing hard work, education and fairness creates shared prosperity,” said Eliot Seide, director of the state’s largest union of public employees, AFSCME Council 5. “Let’s give them a chance to continue moving Minnesota forward. Our blue state is a beacon of hope in the Midwest, but we still have a lot of hard work to do.”

Richard Trumka: The choice we face Nov. 4

AFL-CIO President Richard Trumka (right) will speak in Minneapolis Feb. 20.

AFL-CIO President Richard Trumka (right).

Almost no one in America is satisfied with the imbalance of our economy. We’re working harder and harder for less and less.

This isn’t a partisan opinion. All across this country, in poll after poll after poll, we hear self-described Democrats, independents and Republicans say, “We want an economy that works for everyone, not just the wealthy few.” Three out of every four voters think we should raise the minimum wage. Nearly 70 percent of working-class Republicans say, “It shouldn’t be this hard to support a family.”

It doesn’t have to be this way. The economy is not the weather. It doesn’t simply happen to us, nor does it change in two days – or two hours, depending on where you live.

Here’s the good news. A growing number of people have begun to realize that our economy is shaped by rules created in Washington by elected officials, rules that pick winners and losers, rules that have picked working people to lose again and again and again for a long time.

[Click here to join other East Metro union members who are helping get out the vote for labor-endorsed candidates.]

Yet those who keep rigging the American economy for the rich and powerful have noticed the changing American electorate, too, and they have turned up the pressure to divide working people and to go after the things we hold most dear.

Working families face politicians backed by right-wing billionaires who want in the name of “free markets” to gut Social Security, prevailing wages, Medicare and Medicaid, job safety, gender equity, decent public education funding, public lands and practically everything else working families rely on.

These politicians think nothing should blunt the cold, hard edge of the marketplace. If you’re too young, too old, too poor, too sick, too anything, it’s just tough luck.

Here’s the really bad news. These far-right politicians know their values are not majority values, and that’s why they scheme to shrink our democracy, to cut back our ability to exercise our rights as Americans. That’s what voter ID laws do. That’s what restrictions on absentee ballots and early voting do. That’s what gerrymandering does.

These politicians use division to win elections. Sometimes they say public workers are the problem. Or they claim immigrants are the problem. Or skilled construction workers. Or welfare recipients. Or retirees. Or union workers. Everyone except the millionaires and billionaires, whose compensation has tripled over the past 30 years, while the rest of us are lucky if we’ve broken even.

Here’s the choice we face. We can decide not to be pushed to the bottom. We can choose to elect leaders who will restore fairness to our economy and invest in the things that matter to us, things like education, jobs, infrastructure and our future. Better yet, those investments can be made by doing away with tax cuts for people who don’t need our generosity, like the billionaires and CEOs who routinely avoid contributing to our country’s bottom line.

Don’t misunderstand me. This is not about political parties. Not every Democratic politician is a champion of working families. Nor is every Republican an enemy. But these days, too many Republicans are right-wing extremists.

All across Minnesota, and as we’ve seen from fast food workers and Walmart workers and even some self-described Tea Partiers, a new kind of populism is on the rise. It’s not an easy thing to define, but it is very real, and it is reshaping and will reshape America. As working people, the election this fall is an excellent opportunity for us to shape this change.

Working people want raising wages. It’s a popular idea. Imagine a world where the gap between the rich and the rest of us starts to shrink. Imagine the boost to manufacturing when millions of working people have the money – not the credit but the money – to purchase the things we want and need.

Imagine it, but don’t dream it’ll pick up like a fresh breeze. We’ve got to make it happen.

So what will you do? It is up to each of us to help bridge the gap for those who share our values but who don’t yet see how our interests coincide, who don’t yet see that jobs and rainfall are fundamentally different. We can create jobs, and, together, we can register and educate more working-class voters. We can turn frustration into stubborn action.

We’ve already started. Let’s keep doing it. All of us together.

– Richard Trumka, who comes from a small town in Southwest Pennsylvania, is the president of the nation’s largest federation of labor unions, the AFL-CIO.

‘Moral Mondays’ leader joins March for Equity in Minneapolis

Rev. Dr. William Barber II speaks to a crowd of more than 150 people in Peavey Plaza before the Minneapolis teachers' March for Equity.

Rev. Dr. William Barber II speaks to a crowd of more than 150 people in Minneapolis.

A leading progressive voice from the South delivered a spirited, Saturday-morning sermon downtown Minneapolis Aug. 16, making a scripture-based appeal for social justice and leading a “March for Equity” along Nicollet Mall.

“We have a tale of two cities, whether it’s up north or down south,” Rev. Dr. William Barber II told a crowd of more than 150 people gathered in Peavey Plaza. “In America we are both the richest and the poorest nation in the world, and it is a scar on our moral integrity.”

Activists march down Nicollet Mall after Barber's speech. The March for Equity was organized by the Minneapolis Federation of Teachers.

Activists march down Nicollet Mall after Barber’s speech. The March for Equity was organized by the Minneapolis Federation of Teachers.

Barber, president of the North Carolina NAACP, has staked a progressive claim to the moral high ground in his Bible Belt state. With an act of civil disobedience at the state’s legislative building in April 2013, he sparked the “Moral Mondays” campaign, a grassroots revival of anti-poverty, pro-worker activism that has spilled into neighboring states.

“These are not just policy issues,” Barber said. “It’s not a left-versus-right debate or a conservative-versus-liberal debate. These issues form the centerpiece of our faith, the very soul of our democracy.”

Since Barber’s initial arrest – he was leading a protest of efforts to restrict voting rights in North Carolina – the “Moral Mondays” campaign has grown, drawing support from a diverse group of religious and community groups.

Thousands of people have joined weekly demonstrations in Raleigh, and more than 900 have been arrested for protesting a wide range of conservative bills passed by the Legislature, including cuts to unemployment benefits, health care and public education.

Cutting programs that lift people out of poverty, Barber said, goes against the teachings of Christ.

“If you’re going to put your hand on a Bible and swear yourself into public office, you ought to know what’s in that Bible,” he said. While many right-wing lawmakers focus on divisive issues, like gay marriage or prayer in schools, he added, “none of them trump the scripture that says you must love your neighbor as you love yourself.”

“When we put the poor at the center – and not the margins – of our agenda, that’s what equity looks like,” Barber said.

The March for Equity was part of a weekend-long series of events organized by the Minneapolis Federation of Teachers as a kickoff to the 2014 election push. Union members will work to elect candidates who support not only public schools, but policies that lift families out of poverty, so that students in their classes are in a better position to learn.

St. Paul Federation of Teachers members at the March for Equity included Kimberly Colbert, Leah Lindemann, President Denise Rodriguez, Rebecca Bauer, Sue Snyder, Erica Schatzlein, Nick Faber and Ellen Olsen.

St. Paul Federation of Teachers members at the March for Equity included Kimberly Colbert, Leah Lindemann, President Denise Rodriguez, Rebecca Bauer, Sue Snyder, Erica Schatzlein, Nick Faber and Ellen Olsen.

It’s a mission – and a message – the teachers’ union in St. Paul carried into its contract campaign earlier this year. Several members of the St. Paul Federation of Teachers joined the march in Minneapolis.

“Our families and students do better if parents are earning a living wage, if they have access to health care and affordable housing,” SPFT member Sue Snyder said. “We need to come together for all people – for students, for families, for the community – so we can all do better.”

Barber, SPFT member Ellen Olsen added, is a progressive “rock star” whose Moral Mondays campaign embodies the type of organizing work teachers are aiming to do.

“This is not a special interest thing,” Olsen said. “They have been building bridges and community relationships for a long time. And that’s what we need to do, that’s what we’ve been trying to do in St. Paul.

“We’ve got so many different people working on different things – we’ve got to come together. That’s where the power is, in numbers.”