Former Sen. Alan Simpson PHOTO: Politico

The beauty of Social Security is its simplicity. Social Security is a self-financing system that workers and employers pay into, and upon retirement (or in the case of disability or death), workers and their families receive benefits commensurate with average wages. Pretty simple, and critical for millions of Americans. So when someone tries to distort the facts about Social Security, it’s pretty easy to see. Here’s one example.

Deficit hawk and former Senator Alan Simpson, co-author of the Bowles-Simpson Deficit Reduction Plan and infamous for calling Social Security “a milk cow with 310 million tits” is making a bold claim: in order to “save” Social Security for the next generation, it must be cut – substantially.

But in a recent post, Ross Eisenbrey at the Economic Policy Institute points out that Alan Simpson’s plan would actually be more harmful to future generations than no changes what-so-ever. “Our children and grandchildren will lose critical benefits under Simpson’s plan, while [current] seniors like him are mostly protected.”

Here’s why: future benefits are already scheduled to fall to a replacement rate of about 36% for middle class earners thanks to an increase in the retirement age, and because of earlier cuts from the 1980s. But Simpson’s plan would make even deeper cuts for a worker retiring at 65, lowering the replacement rate to 28%.

Under the Bowles Simpson’s plan, if a middle class earner retires at age 65 in 2080, Social Security will replace only 28% of their pre-retirement earnings. By contrast, a 65-year old who retired in 1980 had 49% of pre-retirement earnings replaced by Social Security.

Of course, there’s an easy solution not explored by Alan Simpson that would put Social Security on sound financial footing for future generations – Scrap the Cap.

Under the Scrap the Cap plan, Social Security can pay 100% of benefits after 2033, and even modestly expand benefits today, if Congress makes one simple change: eliminate Social Security’s cap on taxable income (now set at $110,100) so high income earners pay the same tax rate as middle class workers.

The additional funding could boost benefits for low-income earners, add credits for individuals (often women) who take time from work to raise their family, and restore benefits for college students that were cut in the 1980’s.

Cutting benefits and increasing the retirement age are not the only options. Scrapping the cap – and asking everyone to pay the same rate for the same guarantee – would put the Social Security system on solid financial footing for the long-term, and allow us to keep our promises to future generations.

Learn more from Keeping Social Security Strong: Four steps we can take to preserve America’s promise for future generations

Washington state family child care providers

As the issue of child care provider unionization is considered in multiple states, a better understanding is needed regarding the effects of unionization on improvements in training, access to information, and  quality of care to children and communities.

Two recent studies, one conducted by EOI and the other by Rutgers University, help to shed light on the effect of unionization on child care providers.

The research finds that when child care providers have the right to form unions, it helps to stabilize conditions, improve job satisfaction, and raise wages to appropriate levels—all of which are vital to providing the best possible care for children. And because in-home child care providers face very low pay and poor access to benefits and training opportunities, a union also offers child care workers a collective voice to improve their working conditions.

American Rights at Work compiled finding from these report into a short summary of findings, available here.

John Burbank, EOI Executive Director

We have a lot of public heroes. We tend to think of the firefighters, EMTs and police who arrive at an accident, save lives, care for the injured, and clean up the mess. But we often ignore some lower profile public heroes, who we literally depend on for the health of our community.

You can find some of these heroes in public health clinics. These workers — the nurses, doctors, medical assistants — are the front line for a healthy society, providing care to infants and mothers, assessing chronic diseases, persuading people to quit smoking, ensuring restaurant food is healthy, and leading the fight against communicable diseases.

This year we may be losing the public health fight against one disease most of us thought was conquered half a century ago: whooping cough. Some 1,500 cases have been reported this year, 10 times the number of cases from all of last year.

It is a serious disease, especially for babies, and easy to transmit as it’s spread by coughing and sneezing. Last year an infant in Lake Stevens died from it. Now Northwest Washington is the epicenter of this epidemic.

There is a highly effective vaccination for whooping cough: DTaP. This protects children against three diseases: diphtheria, tetanus, and whooping cough. Children need five DTaP shots by the time they turn 6. For adolescents and adults, a booster vaccination will protect them from the whooping cough. So the first thing to protect yourself is to double check with your doctor to make sure you are up to date with this vaccination.

But this isn’t just about protecting yourself, it’s about protecting the whole community. Adults are the reservoir for the disease and yet fewer than 10 percent of them have had a booster. Then there is the idea that kids don’t need to be vaccinated. Some parents can do this because everyone else’s kids are vaccinated, and they’re protected by “herd immunity.” That means contagion can’t spread and even the unvaccinated kids are safe, as free riders.

When too many people make this choice, however, even 5 percent, herd immunity is compromised. The unvaccinated kids can and do spread whooping cough, sometimes even to those who have been vaccinated. Older people and those with weak immune systems are especially vulnerable — and that is the start of an epidemic.

So choosing to let a child go unvaccinated is not a benign decision. Parents who do this are endangering the health and wellbeing of their children, and many others. Medical studies have proven there is no link between vaccines and autism, or any other medical condition. For those who think they are doing the good “no chemical-medications/natural” thing, they are actually endangering their kids, neighbors and community.

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In the absence of laws requiring all of us to be vaccinated, public education and persuasion become even more important. That’s the role of public health. But it is hard to hold the front line against epidemics when you lose resources.

The Snohomish Health District has been cut by almost one-third. In 2007 and 2008 there were 18 nurses and health workers in clinics, vaccinating kids and adults. Now there are 12 workers to serve a population of more than 720,000 in Snohomish County. That’s 12 people to persuade the parents of the 7,000 kids who are not vaccinated, but are enrolled in school, that their children are vectors for disease and they should be vaccinated. That’s 12 people for more than half a million adults who have not gotten their whooping cough booster vaccination.

In 1999 voters approved an initiative to decrease motor vehicle excise taxes. Snohomish County residents gave Initiative 695 over 60 percent support. A portion of those taxes went to public health — a little more than $2 million. The Legislature scrambled to make up that loss with money from the general budget.

We made do until the banks brought down the economy in 2008. Then public revenue fell, and funding for public health was cut. Today, that $2 million could pay for 60,000 whooping cough vaccinations or 40 public health workers. But as a society, we seem to be moving away from caring about our community, and more toward caring only for ourselves.

That shift is reflected by our everyday choices — both letting our children go unvaccinated, and cutting funding for critical programs to prevent the next epidemic. What a trade-off. But we made those choices, and now we are living with the consequences.

From the Everett Herald

Photo: Port of Seattle

SeaTac Airport, the 17^th largest airport in the U.S., is a major carrier of Washington’s economy. From 2007-2010, passenger travel increased  in spite of the recession – and the airport’s net operating income took off, exceeding $57 million. Alaska Airlines, the largest airline operating at SeaTac, enjoyed record profits in 2010 and 2011, and responded by happily delivering record bonuses to its employees. But it wasn’t blue skies and smooth sailing for everyone at SeaTac.

SeaTac Airport– operated by the Port of Seattle – is a public agency that employs tens of thousands of people. Many of these workers have good jobs that pay family wages and provide benefits, but 4,000 of them do not. These 4,000 workers – often skycaps, baggage handlers, wheelchair attendants, cabin cleaners and jet fuel technicians – are employed by dozens of faceless contracting companies, earn surprisingly low wages and lack affordable healthcare.

Despite working for a public agency in nearly every respect, these contract workers earn 27-41% less than those directly employed by airlines with comparable jobs, and have fewer opportunities for advancement. The average wage for these contracted workers is $9.70/hour or $20,176/year for a full-employee – just $1,600 over the federal poverty level for a family of 3, and below a living wage for a single adult in Washington state.

With low wages and high premiums, healthcare is also out of reach for many of these contract employees. From 2006-2010 an average of 1,100 airline-related workers each year enrolled in Washington’s subsidized healthcare plan at a cost of $6.3 million – a large indirect public subsidy to these low-wage employers.

Despite $4+ billion in revenues, Alaska Air – which is responsible for 55% of all landing and takeoffs at SeaTac – has left many SeaTac workers critical to their operation holding the bag. A recent report from Puget Sound Sage states: “A key component of the [Alaska Air’s] strategy to increase profits has been to contract out increasing portions of its workforce and operations. In the last decade, the value of the work Alaska contracted out has grown from $82 million to $185.1 million.”

Contracting out work might please shareholders, but it occurs at the expense of highly productive workers, and often leads to wage stagnation.

Of course, it doesn’t have to be this way. Alaska Airlines just completed a $238 million terminal remodel  at Los Angeles International Airport (LAX) where contract employees are paid a minimum of $15/hour.

SeaTac doesn’t have to choose between airline profits and good jobs. As is the case at LAX, the cost of paying workers a decent wage will likely be offset by reduced turnover and increased employee loyalty.

SeaTac helps to keep our state economy strong and bring in economic activity, a task made possible by the hardworking employees who keep the airport operating well. The Port of Seattle ought to ensure all employees working there have good jobs, with affordable benefits and living wages.

Evaluating Family and Medical Leave Insurance for Washington State

The federal government enacted the Family Medical Leave Act (FMLA) in 1993 to ensure up to twelve weeks of unpaid leave per year for workers to recover from their own serious health condition, bond with a new child, or care for a seriously ill spouse, child or parent. The law also provides job protection while eligible employees are on leave.

Despite setting an important precedent, FMLA’s reach has proven limited. While most employers have been able to comply with FMLA standards, a large sector of the workforce is ineligible for leave. Moreover, many workers simply cannot afford unpaid leave, even to provide necessary care to loved ones.

Leave under FMLA is available only to people working in businesses with 50+ employees, who have been with their current employer for a full year, working a minimum of 1,250 hours in the preceding 12 months. These restrictions mean little more than half the workforce has access to FMLA – and just 20% of new moms.

The policy is further limited by the economic burden unpaid leave places upon workers and their families. U.S. Department of Labor surveys have found that among eligible workers who had a need for leave but did not take it, nearly 78% reported they could not afford to take unpaid time away from work. Employers, for their part, report little difficulty with FMLA.

In surveys conducted by the U.S. Department of Labor, more than 90% of employers reported the law had “positive” or “no noticeable” effects on their business’ profitability and growth. Further, the majority of employers were able to temporarily reassign the work of an employee on leave to others, rather than recruit and train a short-term replacement.

Read more from Evaluating Family and Medical Leave Insurance for Washington State

Evaluating Family and Medical Leave Insurance for Washington State

The economic gains of paid leave are a key benefit to working families, but paid family leave also impacts quality of care. When workers on leave are ensured some level of wage replacement, they can better focus their attention on loved ones. People of all ages have better health and life outcomes when loved ones are present and active in their care.

For children, the availability of nurturing caregivers at the start matters for healthy development in the long-term. When children are sick at home, they need their parents to provide care, give medications and monitor their condition. In outpatient or hospital care, recovery is faster when parents are at their side and involved in follow-up care planning.  For adults, morbidity and mortality is affected by social engagement, and the elderly have better disease and physical health outcomes when loved ones participate in their care.

Caregivers who take paid leave report more positive effects on their ability to provide care, compared with those who do not receive wage replacements. In a survey of California workers who accessed paid family leave, 82% reported that bonding leave “had a positive effect on their ability to care” for a new child. Positive effects were even greater for workers in low-wage jobs – 91% reported positive effects on ability to care for a child, versus 71% of those who did not use the state’s program for leave.

While new mothers continue to file the majority of bonding claims in the two states with universal paid family leave programs, the programs have been shown to increase the proportion of claims filed by new fathers. In California, the percentage of bonding claims filed by men increased from 17% in 2004-05, when the program was implemented, to 26% in 2009-10. Many managers have also reported increases in duration of leave taken by new dads.  On average, the likelihood of a new father taking paid leave increased from 61% in 2004 to 86% in 2009.

For children, the benefits of paternity leave last beyond infancy. Researchers found that men who take family leave are more likely to be involved with their children in later months. For example, men who take more than two weeks of leave after the birth of a child are more likely to participate in caregiving activities nine months later.

Evaluating Family and Medical Leave Insurance for Washington State

As women’s participation in the workforce has increased, families have become more dependent on women’s earnings – particularly since the Great Recession left significantly more men without jobs. Yet, women continue to take home less than their male counterparts across industries, age ranges and education levels. According to research by the Center for American Progress, a typical Washington woman earns $524,000 less than her male counterpart over a 40-year career.

Although a number of factors contribute to the earnings gap, many women experience what is known as the “motherhood penalty” – women with children have more difficulty getting hired and are more likely to be offered lower pay than other women and men with equivalent qualifications.

Notably, disparities in pay begin to increase as women reach child-bearing age. As they move into sandwich years, when they are caring for children and elders at the same time, the earnings gap continues to widen because women are less likely to receive promotions and accompanying pay raises.

Childbirth and family care

For women working full-time, paid sick and vacation leave have become more available for situations when a few days of leave is needed. However, sick and vacation leave are usually short-term and insufficient for serious health or family issues.

Data from the U.S. Census Bureau show that more than half of first-time mothers used some form of paid leave after the birth of their first child between 2006 and 2008. More than a third of these women used a combination of leave, including paid vacation and sick days to spend time recovering from childbirth and caring for their newborns. Further, data show that while fewer women are quitting their jobs to care for newborns, more women are taking unpaid leave after giving birth and slightly more are being let go from their jobs.

Crews assemble the steel cages that will become part of the underground supports for the SR 99 South End Viaduct Replacement project in Seattle. Photo: Washington DOT (Flickr Creative Commons)

If you think our elected representatives should be working to undercut – instead of boost – people’s wages, this news won’t make you happy. But there’s good news for everyone else: a three-pronged effort to diminish Washington’s prevailing wage law met a well-deserved defeat during the 2012 legislative session.

First enacted in 1945, Washington’s prevailing wage law ensures people working on public projects receive wages, benefits, and overtime that are typical for their occupation. This year, Senators King, Schoesler, Hewitt, and Holmquist-Newbry jointly sponsored a trio of bills designed to weaken the state’s standard:

• SB 6419 replaced the current prevailing wage definition – wages, benefits and overtime earned by the majority of urban-area workers in a particular trade/occupation – with a lower standard: the county-wide average of all workers in that trade/occupation.

• SB 6420 excluded workers who supply materials and equipment from Washington’s prevailing wage law.

• SB 6422 limited the prevailing wage law’s coverage to only those workers employed in construction activities.

None of the three bills made it out of the legislative committee into which they were introduced – and it’s a good thing. Diminishing people’s paychecks is no recipe for getting out of a recession, especially given that there’s no strong evidence prevailing wage laws have any impact on construction costs. Take schools, for example:

• Pennsylvania school construction data shows no across-the-board decline in costs after prevailing wage laws were weakened there.

• A study of 15 Great Plains states showed the average cost per square foot of building new schools did not differ significantly between states that had prevailing wage laws and states that did not.

• A comparison of school construction costs between prevailing wage and non-prevailing wage states in the Mountain West and Southwest found that average costs per square foot were actually lower in states with prevailing wage laws.

•  A study of school construction costs in Maryland and other mid-Atlantic states found that prevailing wage laws have no measurable impact on costs.

There’s also evidence that weakening prevailing wage laws actually increases costs in the short-term and long-run. Declining worker productivity means more hours are required to get a particular job done; as morale drops, more time has to be spent fixing mistakes; as experienced and skilled workers move on to better-paying projects, fewer workers commit to apprenticeships, leading to long-term labor shortages.

Getting the best value for our public dollar requires thinking beyond penny-pinching policies like weakening our prevailing wage standards. As the Keystone Research Center notes:

Real savings in public construction costs are more likely to come from investments in worker training, which can make workers more productive, thereby lowering costs without cutting wages.

Evaluating Family and Medical Leave Insurance for Washington State

While few workers have a designated paid family leave benefit, many do have limited amounts of paid leave available as vacation, sick leave, or paid time off. However, access to paid leave benefits varies across the labor force.

In general, low-wage and part-time workers, workers without advanced degrees, and women of color are unlikely to receive any type of workplace benefit, including paid leave, which presents significant barriers to economic stability. Limited access to leave benefits can be especially challenging for low-income families.

Little more than half of the U.S. workforce with earnings in the bottom 25% has access to paid vacation leave, and just 36% have paid sick leave. Access to paid family leave is especially limited – just one in 25 workers with earnings in the bottom 10% receives paid family leave benefits, compared to one in five with earnings in the top 10%. Similarly, only 6% of part-time workers in the U.S. had access to paid family leave in 2010, versus 14% of full-time workers.

Workers in low-wage jobs often deal with unpredictable scheduling and limited flexibility. Irregular hours can be particularly difficult for workers who cannot afford consistent child care or homecare services for an ill or aging parent. Further, low-income families face greater demands for family care. Due to limited availability of resources, they are more likely to act as caregivers for elderly relatives. Children from low-income families are more likely to have chronic health issues and developmental difficulties – conditions that often require more intensive care.

Juggling inflexible schedules and demanding care needs can put strain on any household. But for low-income families, this kind of juggling act is more often managed by a single parent: two-thirds of low-income parents are the sole head of the household. In Washington, six in ten families led by a single mother lived below 185% of the poverty level in 2010 – that’s an annual income of $32,500 or less for one parent with two children.

Evaluating Family and Medical Leave Insurance for Washington State

Significant changes in workforce demographics have led to increased need for family-friendly workplace policies that enable workers to better balance the responsibilities of family, health and career. But absent new public standards and programs, private employers have responded slowly.

Paid leave benefits have generally been limited to those workers with the greatest bargaining power, either because of training and skills or representation by a labor union.

The face of the labor force has changed considerably over the past several decades, including a notable increase in the proportion of women in the workforce. Today, women hold nearly half of jobs throughout the U.S.

About 60% of Washington’s women participated in the labor force in 2011 – up from 52% in 1981. The increase is even sharper among mothers. In 1975, just 47% of U.S. moms with children under 18 participated in the labor force. Now, more than two-thirds of mothers with kids at home are employed, and 59% of moms with children under six were working in 2010.

As women and mothers have joined the workforce, families have become increasingly reliant on women’s earnings. In 1975, husbands were the sole breadwinner while wives were stay-at-home moms in 45% of families with children. By 2008, only 21% of families had this arrangement. Now, about four in ten moms are the primary breadwinners for their families.

Single mothers, as sole earners, are more likely than those who are married to hold a job. In Washington, 70% of single mothers were employed in 2010, compared with 62% of married moms.