Merit pay

Merit pay plans can easily engender worker dissatisfaction if employees perceive that individual performance is not being accurately measured or consistently rewarded. One frequent outcome of such dissatisfaction is that workers choose to join the union.

Do you know who get bonuses? If you guessed higher-level management and the so called professional workers then you are right. Together we should get the cost of living.

Compensation methods

The different compensation methods reflect in part the tendency of companies to view production-type workers as a variable cost and higher-level management and professional workers as a quasi-fixed cost - in our view this is wrong.

It may be easier to administer but they do not compensate the blue collar properly due to the fact that they reward workers for time spent on the job rather than for actual amount of work accomplished.

Determining pay II

A variety of factors influence the firm’s particular kind of compensation plan or mix of plans generally payment plans based on individual output, which provide the strongest incentive for individual effort and most closely tie pay to performance. While these features would seem to be attractive to both workers and firms the use of traditional piecework pay plans has decreased which is good for a blue collar worker.

According to the management a major consideration is that piecework plans often fail to deliver the anticipated increases in production because workers collectively restrict output fearing that increased production will only cause management to raise the output quota - we here in why did you join the union agree with that.

Determining pay I

The structure of job rates provides a rough outline for the internal wage structure of the firm but it seldom completely determines it. The reason is that the firm must decide on the specific rate of pay for individual workers in each job category and the method of compensation.

Two basic types of compensation methods are used to determine individual pay rates. The first bases pay on the amount of worker input supplied to the job, the second bases pay according to some measure of output produced by individual worker or a group of workers.

The first type of arrangement commonly takes the form of time payment such as wage per hour or salary per year, while the second encompasses pay plans related to individual output group output such as profit-sharing plans.

Job evaluation

Because the external labor market cannot determine a unique wage for jobs in the labor market firms have to use some non-market device to establish an explicit wage structure. One technique that is frequently used is job evaluation. The primary objective of a job evaluation system is to achieve an internal wage structure that promotes equity and rewards efficiency while at the same time being consistent with competitive conditions in the external labor market. Most job evaluation systems have the same basic methodology. The first step is to write a detailed description of each job. The second step is to rate or evaluate each job according to one or more ‘compensable factors’ such as skill and education and so on. The third step is to add these ratings together in some way to create a total ‘job worth score.’

Based on the job worth score each job can then be ranked in the job ladder. In devising a wage structure in the future the rising prices should be a factor in the job evaluation.

Job ladder II

Given the structure of jobs and promotion ladders in the firm how does the firm determine the appropriate set of wages for a blue collar in each job classification? Usually management’s solution is to pay each worker based on the supply and demand in the external market. This supply and demand is not a good solution for wages due to the nature that it does not take into consideration the rising prices.

In our pending contract it is important that we get wages that are abreast with rising prices.

Job ladder I

The effect of a job ladder is to create an internal labor market within the firm. The internal labor market is for those jobs in the firm for which competition to fill a vacancy is limited to workers already employed within the firm. The beginning of the internal labor market is the port of entry which connects the internal job ladder to the labor market outside the firm.

If someone at the top of the job ladder retires then workers at each step of the ladder move up one rung creating a vacancy at the bottom or port of entry. To fill this vacancy the firm goes to the external market where it competes with other firms for workers at the entry level.

Crocodile tears

CED led group - Joe Campbell, Nelson Rivera, Stephan Thomas and Kendra Hill have sent out an email blast under ‘What’s up with Arthur Schwartz and John Samuelsen?’ , their underlying message was Arthur Schwartz ‘violated his ethical obligation and the law.’

In their allegations there was some sort of communication between the two in the past so that would be enough grounds to ‘not serve as a counsel to the Elections Committee for the Local 100 officer elections this year’. One wonders if that past communication rises to the level of conflict of interest, and would confer such privilege to the CED led group to demand anything. It is unclear whether that past communication rises to the level of self-dealing ‘provided support, information and advice’ charge. Also whether they will be able to substantiate those allegations. It is also not known what else they would demand and allege in August, September, October, November and finally in December.

We have to remind the CED led group ‘One wonders how come this slate is not offering anything credible or tangible that would benefit the membership? Many have observed that those above were Roger Toussaint’s beneficiaries when he was in power. During Roger Toussaint era many agreements were signed that had the intention of eliminating titles such as conductors in Rapid Transit Operation as well as the CTA position in the Station Department in which Nelson Rivera and Stephan Thomas acquiesced.’

The other side of the coin is that usually when a lawyer violates his ethical obligation he is disbarred from practicing law and his law license is yanked by his state. Now the question for CED led group is if they believe they have evidence to back those charges then they should proceed directly to New York State to get Arthur Schwartz disbarred. That would be a public service because it will protect the public and the legal profession by ensuring that lawyers adhere to the ethical standards. However instead they have resorted to The Chief and email blast which have no power to disbar a lawyer. Thus one can conclude that it is innuendo nothing more nothing less or maybe they will allege they do not know the address of where to file the complaint - here it is. 

Departmental Disciplinary Committee

Supreme Court, Appellate Division

First Judicial Department

61 Broadway, 2nd Floor

New York, New York 10006

Telephone (212) 401-0800

For those who have evidence they can present it to New York State which does reprimand and discipline lawyers from crossing the line. In this case we can surmise that due to the lack of evidence presented by this CED led group they were unable to proceed to New York State. We also know New York State had disbarred former President Richard Nixon in 1976 for obstruction of justice and Ed Fagan, a New York lawyer who prominently represented Holocaust victims against Swiss banks was disbarred in New York in 2008. It is clear New York State has the ability to disbar lawyers, now do you believe the CED led group have truth in their allegation? Or is it crocodile tears?

Wage structure II

The set of wage paid for particular jobs in a firm is heavily contingent on its job structure. The job structure is defined as the set of jobs in terms of skill and function required by the firm. The job structure in a particular firm is heavily influenced by the technology of production. If the company is an airline for example technology dictates that firm’s job structure must include pilots, flight attendants and so on. The types of jobs in a firm are not completely determined by technology however by long-run decisions of the firm such as what proportions and kinds of labor, capital and other factor inputs to use. Once these are decided and a specific plant is built then the technology of production, generally determined within fairly narrow bounds will allow for the job structure of the firm to recruit labor.

Wage structure I

The wage structure refers to the set of wage rates paid for particular jobs and workers in the business firm and the system of wage differentials that separate each job and worker from others. The work force of nearly every firm is comprised of people performing varied and distinct jobs ranging from the waitress, cook and cashier in a small restaurant to the hundreds and thousands of distinct jobs in a large corporation.

In many corporations part of the personnel function of the management of every firm is to decide what wage rate each individual in the organization will be paid. One interesting question is how the wage structure is established? Can you imagine if those personnel lived in the real world? One can only imagine. 

Raise the minimum wage VI

Has the minimum wage law achieved its objective of raising the income of low wage workers? To answer this it depends on many overlapping issues especially rising prices. By definition when the increase of goods or prices goes up by 15% percent while the wages have no raise or maybe a smaller percentage increase in the wage then it is obvious that the blue collar are not protected by the minimum wage law. 

Second this increase in income is not equally shared, while the white collar get bonuses the blue collar’s total income received would decrease.

Raise the minimum wage V

Are there winners for minimum wage law? The answer is not clear but we can see the losers - obviously the consumers who have to pay higher prices for the goods and services produced. The business firms (rhetoric) will claim that at least in the short run they will have lower profits (we know this is not accurate - management always keep the investors happy by doubling up their dividend so in turn they can award themselves bonuses).

We know that the blue collar are the obvious group of losers who have no means of coping with the rising prices due to the fact that their wages do not mimic the rising prices.

Raise the minimum wage IV

We do not agree with the point of view that a predicted impact of raising minimum wage involves wages and employment that would create an excess supply of labor resulting in a downward pressure on wages in the market.

We believe there would be no increase in unemployment that would be registered.

Raise the minimum wage III

Another point of view which we do not agree with is that in the event of raising the minimum wage there will be a rise in unemployment. 

Our reasoning concerning this point of view is that it is less than certain that some or all of unemployed workers may give up their job search by dropping out of the labor force as discouraged workers.

Raise the minimum wage II

We do not agree with the point of view that raising the minimum wage will cause a decline in employment. We know consumers will always have a demand whether it is for for gas, lettuce, tomatoes, potatoes, eggs, oranges etc.

Thus the blue collar are entitled to raising the minimum wage law.

Raise the minimum wage I

There is no question that now is the right time for Congress to act in deciding on the appropriate level of raising the minimum wage. We all know the facts for single-earner family heads and that with minimum wage sufficiently low even with full-time work their annual income may still fall far below the poverty line. 

We know for the blue collar that minimum wage fails to fulfill its objective of insuring a minimum standard of living. It is time to raise the minimum wage law for the benefit of blue collar workers.

Two workers

It would appear that if Congress intended the minimum wage to insure a minimum standard of living then that has failed. The minimum wage still leaves a head of a household working full-time far below an adequate level of family income. In addition we are excluding health care expenses.

Some may inquire what the reason is. The simple answer is the rising prices. Wages have not counter balanced that rising cost of living. There is no clear sign of prices receding in the future so what is the solution? There is no alternate but to raise the wages.

Now many of the workers have resorted to a quick fix solution to being no more a single-earner heads of households, but rather so-called ‘secondary’ earners such as spouses and their children. In the 2010 census it was revealed that 72 percent of all wage workers were either children or spouses of household heads. This is wrong wages must be raised and they should be in lock step with the rising prices. It is true that the total family income is above the poverty line however when one looks at the individual income it is quite low. Thus we in the TWU Local 100 believe we are due a wage raise and cost of living adjustment in our new contract.

Rent too damn high

Jimmy McMillan thought the rent was too damn high. He should visit the rumored Joe Campbell palatial mansion in the heart of Astoria. It is whispered Joe Campbell has a mansion that every leader of labor organization would envy. It is also speculated if Joe Campbell would market his mansion in the rental market it will fetch a staggering $18,000 a month. It is speculated to be one of the most expensive residential properties in the Queens rental market.

The mansion has a sprawling six-bedroom, nine bathroom palace, boasts a private elevator, butler’s pantry and three wood-burning fireplaces. A top-of-the-line gourmet kitchen with a sub-zero refrigerator, six burner Waterford Irish stove and wine cooler that is an appeal to culinary enthusiasts. We would love to be invited to those fancy parties that he hosts to the well heeled. However we the members of the TWU Local 100 are blue collar who would love to enjoy those nice features.

If those bells and whistles aren’t enough, the ritzy home has a potential to even feature an in ground heated swimming pool with an adjoining cabana. It can be rented furnished or unfurnished. For those with their own furniture they are eligible for a discount - they can rent the mansion for $16,500 per month unfurnished. We wonder if our 3% wage raise can cover that on the other hand the mansion is out of our league.

Landscaping services, daily housekeeping, 24 hour security and on-site are also included in the monthly rental price. It is also an unconfirmed rumor that those services will be provided by the courtesy of the TWU Local 100 members who like to moonlight when he is president. Well we here in why did you join the union believe Joe Campbell should be fair to all the TWU Local 100 members - spread the wealth around, we all want to moonlight. We would love it if he used the list in alphabetical order on a rotational basis so every member can get the extra cash instead of his chosen few.

Hardwood floors provide a touch of elegance, while muted color palette of creams, whites and lattes throughout the property complete the contemporary look. Well one wonders with the current financial situation if Joe Campbell wants to rent his mansion so he can get a renter either on a short-term or long-term basis.We wonder if any of us in the TWU Local 100 can afford such a beautiful mansion and we are very proud of CED division chair of his accomplishment. If it is true many have inquired what was the source of his income the tidbits is maybe it was his share from the sale of 80 West End Ave our old union hall. We are waiting for the word when the Joe Campbell Rolls Royce is coming (maybe a second coming of Israel Rivera Jr - Jeep SUV with bells and whistles) - we would love to wear the black suit with a cap with white gloves to polish the Rolls Royce definitely to chauffeur his excellency around town.

We are not experts in the rental market but if it is true that Joe Campbell’s mansion is positioned conveniently to both Yankee Stadium, New York Knicks, Brooklyn Nets, Arthur Ashe Stadium and the New York Mets then there is definitely potential - we wonder how Donald Trump missed that? We can guarantee that none of the TWU Local members would be able to plunk down that kind of money in addition we do not have the time to enjoy the finer things that others can because we are blue collar.

Working poor

As stated in the Fair Labor Standards Act, the primary purpose of minimum wage is the ‘maintenance of the minimum standard of living necessary for health, efficiency and general well-being of workers.’ The important point to note is the phrase ‘minimum standard of living’ which pertains to annual income not the wage rate. Much like other government tax and transfer programs (for example, AFDC and Social Security) the minimum wage is an attempt to put a floor under the income of a particular subgroup of the population in this case the ‘working poor’ people with jobs who receive very low wages. Can we say with the raising prices, the rising cost of living that we the TWU Local 100 members are the working poor - yes we can say that.

Who are the working poor and how many are affected by the wages? Three recent studies have analyzed these questions with data from the current population survey (2010) - about 31 percent of workers who were paid hourly wages reported earning less than or equal to the minimum wages. This group of workers was comprised largely of young people and women, the majority worked part-time, and most were employed in service and sale occupations. This is a significant group of people who receive wages sufficiently low that they might still have annual incomes below the government’s official poverty line. We can say that TWU Local 100 members deserve a wage raise.

Labor shortage

The recent article in the Wall Street Journal was concerning severe shortage of labor and how companies have tried different tactics. How can labor shortage and stable wages coexist? According to one well-known labor economist, ‘What were seeing is the legacy of last economic recession and the ongoing pressure of foreign competition. Many companies have chosen to ignore issues of labor supply and demand for fear that higher labor costs will make it more difficult to compete.’ 

He goes on to say that a number of companies decided to operate shorthanded or institute mandatory overtime rather than raise wages with the hope that the labor shortage would prove to be temporary. It reminded us of our ill suited former CEO 

Jay H Walder who applied this tactic however it failed miserably. He had no moral fortitude to stand up and take the blame but cut jobs and ran away to Hong Kong - that revealed his moral fiber and upbringing.

The article notes however that gradually the pressure of excess demand was beginning to show up in craftsmen wages. The Laureno Lumber and Mill Company for example couldn’t get anyone to answer the moderate wage that it advertised. The article states the pressure to raise wages affects smaller companies because they typically pay less and thus in a labor shortage tend to lose their craftsmen to bigger employers with higher wages and fringe benefits.

If the shortage remains severe for a sufficiently long time these large employers also begin to experience high separation rates forcing them to consider boosting wages as well. We think now is the time TWU Local 100 membership are entitled to new contract with wage raise.

Different tactics

The recent article in the Wall Street Journal was about how companies have tried different tactics to stop severe labor shortage. The Laureno Lumber and Mill Work Company for example extended its average workweek to 55 hours from 40. The company also offered new recruits a $1,500 ‘hiring bonus’ despite its fear that the bonuses would encourage long-time employees to seek pay increases. The company also admitted that it had lowered its hiring standards and was willing to take people with little experience as door makers and forklift truck operators despite the additional costs of training and lower-quality production.

Given the scarcity of labor, one would think that wages of skilled craftsmen would have risen sharply as companies competed for labor wages.  Surprisingly however such has not been the case the wages rose moderately instead of sharply there was no bidding wage wars among the companies. According to the article the average hourly wage rose moderately for machinists, bricklayers, tool and die makers. If we cross reference with the inflation and rising prices then real wages for craftsmen actually declined.