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Reframing Perspectives on Who’s Helped, Hurt by Minimum Wage Hikes

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Urban Planning Professor Chris Tilly spoke to news outlets about the impact of California’s new wage law on fast-food chains as well as smaller businesses. The law sets a $20 minimum hourly wage for fast-food workers at chains with 60 or more restaurants nationwide. But the impact is also felt by local ethnic restaurants and other small businesses, which must compete to retain workers. “These grassroots businesses are part of the glue that holds communities together, and they’re what give the community an identity,” Tilly told the Los Angeles Times. He also spoke to USA Today about the wage hike’s effect on consumer prices and hiring practices. “The big critique of minimum wages is ultimately it’s a job killer, that it hurts the people that you’re trying to help,” but data from the last three decades has not shown those effects, Tilly said. “We do have to think about how to help people. But to do that by hurting other low-income people doesn’t seem like the right strategy to me.”

Read the L.A. Times column
Read the USA Today article

 

Tilly Navigates California’s Shifting Labor Landscape

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UCLA Luskin Urban Planning Professor Chris Tilly spoke to the California Sun podcast about the state’s shifting labor dynamics. High-profile strikes, concerns about inflation and the emerging role of technology in the workplace have raised the visibility of worker rights campaigns this year. “The cost of housing, of health care, of college tuition have risen on trajectories that are so out of sync with everything else, including pay,” Tilly said. One experimental approach to addressing these issues is a plan to raise the minimum wage for many fast-food workers in California to $20 an hour and create a nine-member council empowered to make future wage increases. “Having some space where labor interests and management interests and public interests can all sit down at the table and hammer out what might be a good way to go, I think that’s a good thing to do,” Tilly said. “If places like California don’t lead, the prospects for the country look a lot grimmer.”

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Tilly on Costco’s Labor Policy

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Urban Planning chair Chris Tilly appeared on Yahoo Finance Live to discuss Costco’s labor policy and the impact of the Teamsters Union reaching a contract with the big-box retailer. Tilly was asked about the increasing pressure on Costco as some competitors raise employee benefits — and prices — to try to be more competitive. “I think that there’s two sources of pressure. One is, in fact, that competitor pressure,” Tilly said. “Nonetheless, there’s also a source of pressure because as inflation goes up, workers’ expenses go up. And Costco has to keep pace with that.” As an example, Tilly explained that, during negotiations, Costco offered a settlement that workers turned down in August, threatening to go on strike. “And so I think that’s the other source of pressure. And that’s going to continue, both because inflation is continuing and because right now the worker shortage is continuing.”

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Tilly on Job Insecurity Even Amid a Labor Crunch

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Urban Planning Chair Chris Tilly spoke to the New York Times about “just-in-time scheduling,” a labor practice based on customer demand that leads to great fluctuations in employee work hours. While some part-time workers prefer the flexibility of this model, many say it leaves them with too little income or an erratic schedule delivered on short notice. Nationwide, companies are complaining that they can’t fill jobs. Offering more full-time jobs would create a more stable work force, but many businesses are resistant to doing so, believing that the market will correct itself. Tilly said the increased reliance on part-time workers, particularly in the retail and hospitality industries, began decades ago, in part because of the mass entry of women into the work force. “A light bulb went on one day. ‘If we’re expanding part-time schedules, we don’t have to offer benefits, we can offer a lower wage rate,'” he explained.

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New Protections Planned to Limit Heat-Related Workplace Injuries

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Research by Assistant Professor of Public Policy R. Jisung Park was cited in a Vice article about Biden administration plans to establish a federal standard to protect workers from extreme heat. Park led a study that analyzed worker compensation records and found that hotter temperatures are associated with an estimated 20,000 additional injuries per year in California. Workers are prone to poorer cognition and decision-making on hotter days, and days above 90 degrees Fahrenheit come with a 6% to 9% increase in the risk of worker injury, the study found. Park shared his data at a congressional hearing in July. In announcing the new federal safety standards, the Biden administration noted that essential jobs with high exposure levels to heat are disproportionately held by Black and brown workers. The Occupational Safety and Health Administration is now leading a multi-agency effort designed to limit heat illness, injury and death in the workplace.

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Grant to Support LPPI Research on Strengthening Latino Workforce

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The UCLA Latino Policy and Politics Initiative (LPPI) has received $750,000 from The James Irvine Foundation to support data collection and research on the impacts of COVID-19 on Latino workers in California. The grant will also support the development of a policy toolkit to improve the capacity of California lawmakers, business leaders and advocates to champion recovery efforts that strengthen the state’s core workforce. “Latinos are the current and future workforce of California and the road to prosperity runs through them. Yet we often lack the data necessary to make the best policy decisions and targeted investments to uplift Latinos,” LPPI Executive Director Sonja Diaz said. “Opportunity and economic mobility for California’s Latinos is necessary for us all to thrive now and far into the future.” Latinos are the largest ethnic/racial group in the country, and a plurality in California, so understanding their contributions to the nation’s social and economic fabric is imperative, Diaz said. She added that providing opportunities to make a living wage and build new skills in a changing economy is critical to a strong recovery in the wake of the COVID-19 pandemic. The Irvine Foundation grant will support data collection focusing on eight areas: demography and population change; climate change and the environment; economic opportunity and social mobility; education; health; housing;  child welfare;  and voting rights and political representation. “We know that Latinos are essential to California’s future,” said Virginia Mosqueda, senior program officer at the Irvine Foundation. “Supporting UCLA LPPI helps ensure our state leads the nation in offering Latino workers access to economic opportunity.”

Park on the Impact of Extreme Heat on Human Behavior

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A Science News article on the effects of extreme heat on human behavior cited research by R. Jisung Park, assistant professor of public policy. As temperatures rise, violence and aggression also go up while focus and productivity decline, the article noted, adding that lower-income people and countries are likely to suffer the most. “The physiological effects of heat may be universal, but the way it manifests … is highly unequal,” Park said. The article described Park’s research into the impact of hot days on student performance on standardized tests. One of his studies found that students in schools without air conditioning scored lower than would have been expected, and that Black and Hispanic students were more likely to attend school and test in hotter buildings compared to their white counterparts. A separate study by Park, described in Safety+Health magazine, found that hotter temperatures are linked to a significant increase in the risk of workplace injuries and accidents.

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Read the Safety+Health story

Citizenship for Unauthorized Immigrants Could Add $1.5 Trillion to Economy

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Providing citizenship to all unauthorized immigrant workers in the United States would add at least $1.5 trillion to the American economy and $367 billion in federal and state tax revenue over the next decade, according to a new UCLA study. By comparison, granting citizenship only to the members of that group who are considered “essential workers” — including in agriculture, retail and construction — would generate an additional $1.2 trillion to the nation’s gross domestic product and $298 billion in tax revenue over the same time frame. Granting citizenship only to people covered by the Deferred Action for Childhood Arrivals policy, or DACA, would generate $112 billion in GDP and $28 billion in tax revenue; and granting citizenship only to recipients of Temporary Protected Status would account for $62 billion in GDP and $16 billion in tax revenue. The study’s publication comes as Congress and the Biden administration are considering ways to move forward on immigration reform. In the past two months, multiple standalone bills have been introduced to address specific aspects of immigration policy. Some proposals would grant citizenship to certain groups of unauthorized immigrants — those covered by DACA or Temporary Protected Status, for example — while excluding others. The report’s authors note that excluding certain groups of immigrants from earning citizenship would mean forgoing billions of dollars in economic output and tax revenue, and the potential for creating tens of thousands of jobs. The study is a collaboration among the UCLA Latino Policy and Politics Initiative, the UCLA North American Integration and Development Center and the UCLA Institute for Research on Labor and Employment.

 

Tilly on Barriers Facing Union Organizing in Tech

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Urban Planning Chair Chris Tilly spoke to KQED about the obstacles facing Silicon Valley workers who want to unionize. In recent years, tech employees have protested lack of diversity, mishandling of sexual harassment claims, and the second-class treatment of temporary workers and contractors. White-collar tech employees recently formed Alphabet Workers Union at the parent company of Google. According to Tilly, Silicon Valley companies such as Google have done a lot to make it difficult for workers to form unions. “There are a lot of barriers to building worker solidarity within Google,” he said. “Google and other tech companies have been effective at fissuring workers, hiring some as contractors, others as temps and also outsourcing labor around the globe,” Tilly explained. Workers are physically separated and have different employment statuses, including different wage and benefit packages, making it difficult to organize them around common goals.

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