B   M   W   E
JOURNAL
 
ONLINE VERSION VOLUME 106 - NUMBER 4 - MAY 1997
 
Secretary-Treasurer’s Overview
 
Once again, what may have sounded like a good idea to some turns out to be a Trojan horse with an unpleasant surprise in the details. The subject is welfare reform. Sounds good, but the implementation leaves a lot to be desired as millions of welfare recipients are turned into what is essentially a slave labor force with no wages or benefits.

But more than another example of how the wrapping can pretty up a disagreeable package, welfare reform is a cautionary tale of why workers are all in this together.

The welfare reform bill signed into law ended this country’s 60-year commitment to poor children and their families. But it also launched a new, underhanded attack on wages and labor standards of all workers that could put everyone in the poor house.

Under the law, states must have 25 percent of their welfare recipients working 20 hours a week this year, rising to half of the recipients working 30 hours a week by 2002. In addition, anyone who has received two years of benefits must work a minimum of 20 hours a week.

Based on the 1994 welfare caseload, that means one million new workers will enter the workforce this year, with up to four million over the next five years.

The welfare recipients are working off their benefits--not getting paid. So they essentially are a free labor force for employers. Don’t forget, employers don’t have to provide benefits such as health care or pensions. Moreover, labor protections such as overtime, safety and health and other laws don’t apply to these workers--more savings and opportunity for exploitation for employers.

Now that employers have an incentive for hiring these workfare employees, what’s going to stop them from dumping experienced workers who come with high wages and benefits? Nothing!

The new law dramatically weakened displacement protections. Previously a lay off couldn’t result in workfare employees taking the positions. Now, employers only must say that wasn’t their intent, but if it worked out that way, so what? The law doesn’t even address when employers merely reduce workers’ hours and make them up with workfare employees.

Also missing in the new law is any prohibition against using workfare employees to impair collective bargaining agreements. So now these workers--who must take a job or lose their benefits--can be forced to become scabs. The absence of this provision ties into the lifting of a restriction that limited workfare to public sector and non-profit jobs.

Essentially, welfare reform has created a parallel workforce with no rights, protections or benefits. Just as union contracts helped raise the boat for all workers, welfare reform can lower it for everyone too.

The problem is not with the welfare recipients--who are just going to be exploited. It is with the law. We must join with other labor unions and fight to get states to restore the protections that were dumped on the federal level.

If we don’t look out for each other now, we can all sink together tomorrow.

 
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