the fact that a worker’s wealth and well-being is much more dependent upon her employer than the employer is on a given worker tilts things in the employer’s favor.
.. Two trends demonstrate the decline of labor and the ascent of business. Since 1979, after-tax corporate profits as a share of gross domestic product have grown by 22.8 percent, while the share of nonfarm business sector income going to labor has dropped by 10.3 percent.
The decline in worker bargaining power in the United States is the cumulative effect of numerous small and large changes over recent decades reaching into almost every area of law and policy. This combines with a decline in the enforcement of existing laws that could protect workers’ bargaining power — laws protecting unions, laws against wage theft, nondiscrimination laws, and more.
.. Among these changes is the requirement that employees sign what are known as “noncompete” and “no-raid” agreements, both of which restrict workers’ ability to extract pay hikes by threatening to take similar jobs at competing companies.
.. “less than half of workers who have non-competes also report possessing trade secrets.”
When entry-level workers at fast food restaurants are asked to sign two-year non-competes, it becomes less plausible that trade secrets are always the primary motivation for such agreements.
.. The treasury report estimated that 30 million American workers have signed noncompete agreements.
.. 94 percent of the net employment growth in the U.S. economy from 2005 to 2015 appears to have occurred in alternative work arrangements.
The growing emphasis on “shareholder value” has provided additional justification for all of these anti-worker developments.
.. “the shareholder value movement starting in the late 1980s and now institutionalized through industry analysts” was crucially important in the devaluation of employees:
.. Accounting in business is mainly about costs. Finance people hate fixed costs because of the challenges they raise to share price valuation when there is uncertainty, and the biggest fixed costs are labor. Simply moving the same labor costs from employees to outside staffing companies moves it from one part of the accounting ledger to another and makes analysts happier.
This mentality, in turn, encourages “the use of temps and contractors” to fill high-wage jobs because “that way the employer doesn’t have to raise wages for all their employees.”
.. Companies could outsource work to areas with cheaper labor and less of a union presence. This both weakened the union and ramped up competitive pressure on the companies that were unionized. The result was fewer unions.
.. In 2017, 6.5 percent of the private sector work force was unionized, down from 35 percent in 1955.
.. The contemporary weakness of organized labor and the threatened status of employees has roots in the breakdown in the 1970s of the postwar capital-labor accord — what A.H. Raskin, the legendary labor reporter for The Times, called a “live-and-let-live relationship” that held sway for 30 years.
.. First, they would alter antitrust enforcement to require consideration of the likely effect of mergers on concentration in the labor market, in order to prevent “too high a risk of wage suppression.”
.. Second, Krueger and Posner would support legislation making noncompete agreements “uniformly unenforceable and banned if they govern a worker who earns less than the median wage in her state.”
.. ban no-poaching arrangements altogether:
We propose a per se rule against no-poaching agreements regardless of whether they are used outside or within franchises. In other words, no-poaching agreements would be considered illegal regardless of the circumstances of their use.
.. In the 2016 election, Trump profited from the conviction of rural and working-class voters that they were on a downward trajectory. If anything, Trump appears to be gambling that letting those voters’ lives continue to languish will work to his advantage in 2020.
.. His administration has turned the executive branch, the federal courts and the regulatory agencies into the sworn enemy of workers, organized and unorganized. Trump is indisputably indifferent to the plight of anyone in the bottom half of the income distribution:
- look at his appointments,
- look at his record in office,
- look back at his business career and
- look at the man himself.
John Kelly’s Latest Mission: Controlling the Information Flow to Trump
For months, the White House under President Trump operated with few real rules, and those were barely enforced. People wandered into the Oval Office throughout the day. The president was given pieces of unvetted information, and found more on his own that he often tweeted out. Policy decisions were often based on whoever had last gotten Mr. Trump’s attention.
.. In two memos sent to the staff on Monday he began to detail his plan, starting with how he wants information to get to the president, and how Mr. Trump will respond.
.. Mr. Kelly’s predecessor, Reince Priebus, sent some similar guidelines around early in the administration, according to two officials, but they were never taken seriously. Mr. Kelly, a retired Marine general, has been treated with a different level of deference
.. Mr. Kelly has made clear that one thing he will not seek to directly control is the behavior of the president, and there is a good reason for that.
.. Mr. Trump has a history of lashing out at advisers who have publicly conveyed their attempts to impose tighter procedures on him. Just before Election Day, for example, Mr. Trump blew up publicly after a New York Times report that his aides had succeeded in keeping him off Twitter for the final stages of the campaign. He tweeted several times to enforce the point.
.. Despite Mr. Kelly’s fairly deft touch at approaching the president, Mr. Trump has shown signs of rebelling
.. That included his news conference at Trump Tower in which he doubled down on his blame for “both sides” in the racially charged violence in Charlottesville, Va., and his campaign rally speech in Arizona
.. Mr. Kelly had urged Mr. Trump to deliver a more somber, traditional statement the day before. And he and other advisers had urged the president to avoid taking questions from the news media at Trump Tower, a request that the president ignored.
.. In one of the memos, White House aides were told that all materials prepared for the president must go first to Mr. Porter for vetting and clearance. Then Mr. Kelly must sign off on them before they go to Mr. Trump’s desk.
.. given the propensity for some of Mr. Trump’s staff to slip him news accounts from dubious sources that shape his thinking or prompt him to cite unreliable or inaccurate information.
.. Mr. Priebus had tried to take firmer control of that process after Mr. Trump’s first week in office, when Stephen K. Bannon, the recently departed chief strategist, and Stephen Miller, the president’s senior policy adviser, pushed across the president’s desk two orders redesigning the National Security Council, and putting in place the first, court-contested travel ban on seven predominantly Muslim countries.
.. That process is expected to curtail freelancing and hijacking of decisions by West Wing aides. Mr. Bannon was often accused of taking advantage of the loose process, but Mr. Trump’s son-in-law, Jared Kushner, and his daughter, Ivanka Trump, who both work in the West Wing, have also frustrated their colleagues for months by going directly to the president on specific issues.
.. “Let’s assume for the moment that Trump has learned the first big lesson of his first six months, which is that you have to empower the White House chief of staff to be a real gatekeeper,”
.. “What he hasn’t learned, what he has shown no sign of learning, is that governing is completely different from campaigning,” Mr. Whipple said.