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The Guardian - July 23, 2014, by Jana Kasperkevic - Part-time jobs are becoming the source of an employment crisis in the US, as they take the place of full-time jobs for many Americans. That puts many employees at the mercy of erratic part-time schedules, in which they never know what their hours will be from one week to the next.

Congress is making the rare move of taking action on a major employment issue. Representatives George Miller and Rosa L DeLauro introduced a Schedules That Work Act on Tuesday.

There's another version of the bill brewing in the Senate. Senators Tom Harkin and Elizabeth Warren are the sponsors of the Senate’s version of the bill. Carrie Gleason, co-founder of Retail Action Project, said the Warren will introduce the Senate version in upcoming weeks.

“A single mom working two jobs should know if her hours are being canceled before she arranges for daycare and drives halfway across town to show up at work,” said Warren. “This is about some basic fairness in work scheduling so that both employees and employers have more certainty and can get the job done.”

According to the National Women’s Law Center’s summary of the Schedules That Work bill, it would have several goals: to provide employees with the right to request and receive a flexible, predictable or stable work schedule; ensure that employees who show up for a scheduled shift, only to be sent home, receive at least four hours’ worth of pay; and ensure that if employees’ schedule were to change, they are to be notified with a new schedule at two weeks before it goes into effect. It would also prevent employers from retaliating against employees who ask for schedule changes.

A week before the introduction of the legislation, Miller expressed scepticism over the likelihood of its passing the Republican-controlled House. According to the New York Times, the California lawmaker “acknowledges that his bill is unlikely to be enacted anytime soon – partly because of opposition from business”, but hopes that the bill will bring attention to these unfair scheduling practices. That alone says a lot about the current political climate within the US.

The growing scale of part-time work suggests it merits closer regulation, or at least scrutiny. Earlier this month, when the US Department of Labor announced that US had added 288,000 jobs and that the unemployment rate dropped to 6.1%, many were quick to point out that one of the contributing factors was that part-time jobs were on the rise.

Currently, there are 7.5 million “involuntary part-time” workers in the US. These are workers who weren’t able to find a full-time job or whose hours have been cut back. In June alone, about 275,000 of such part-time jobs were created. Struggling to make ends meet, about 1.89m Americans are currently working two part-time jobs.

About 52% of retail workers and 40% of janitors and housekeepers know their schedule only a week or less in advance, according to the National Women’s Law Center. Retail Action Project found that about 20% of workers got their schedule just three days in advance.

Lack of stable, reliable schedules for part-time workers is "a growing national crisis in the American workplace", according to The Center for Popular Democracy. In addition to the weekly schedule changes, part-time workers are often victims of last-minute schedule changes as well.

“Workers need scheduling predictability so they can arrange for child care, pick up kids from school, or take an elderly parent to the doctor," said Miller.

"Like too many others, this is a problem that primarily affects women," DeLauro said when introducing the Schedules That Work Act with Miller.

Last-minute schedule changes are especially difficult on mothers with young children that cannot be left on their own. Out of 200 mothers with young children working in the hospitality industry, just 56% had a predictable work schedule, found ROC-United. For those 46% with un-predictable work-schedule, 39% had a schedule that changes weekly. The remaining 5% had a schedule that might change from day to day.

Four out of 10 mothers said last-minute changes affected their child-care needs. Some had to call in a back-up babysitter, like the mother above. Others, at 29%, had to pay a fine to their childcare provider, due to these schedule changes. Another 20% of mothers lost their child care provider because of their erratic schedule.

Since it might be a while yet before Congress takes up the issue, states can step up and take the lead on this issue. Seven states and District of Columbia already have a “reporting time pay” laws in place. Oregon has one as well, but it’s applicable only to minors, according to Retail Action Project.

Currently enacted state laws specifically protect workers who were scheduled for work, but were sent home upon arrival. For example, in New Hampshire, such workers must be paid at least two hours’ pay if this occurs. In other states like Massachusetts, Rhode Island and New York, they have to be paid for at least three hours.

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EASTON, Pa.—The orders came in fast during a recent Friday lunchtime rush at a Sheetz Inc. convenience store here. Behind the counter, Alexis Cooper layered tomatoes on two sandwiches, refilled a container of onions and swirled a peanut-butter milkshake.

Six weeks into her job at Sheetz, Ms. Cooper easily distinguishes the beep of the deep fryer from the boop of the convenience store’s order-taking system and knows to have a pepperoni roll ready for a regular who shows up around noon.

Ms. Cooper, 20 years old, is something of a rarity in the realm of fast-food and retail work: a full-time employee.

At a time when many chains are shifting workers to part-time, the Altoona, Pa.-based Sheetz is making a big bet on full-time hires, who now comprise 53% of the company’s 17,000-person workforce. Leaders at the convenience store-and-gas-station chain say having full-time workers behind the register results in better customer service, lower turnover and a more engaged workforce—all of which, executives say, will lead to higher sales and profits.

Nearly 5.7 million workers said they were working part-time last year because they couldn’t get more hours or find full-time work, according to Bureau of Labor Statistics survey data. About 65% of store employees in the retail sector work part-time, according to an analysis by search and consulting firm Korn Ferry Hay Group. Companies reason that keeping staff to 30 hours or fewer a week curbs labor costs and allows firms to act nimbly, adjusting staffing to match customer demand.

Sheetz, and others like beauty retailer Bluemercury Inc., acknowledge that full-timers might cost more at first, but say they are more reliable—27% of full-time hourly workers leave their jobs per year, versus 68.7% of part-timers, according to the Korn Ferry report. Lower employee turnover saves on training and hiring costs, those employers say, and some report their customers spend more when full-timers take orders and ring up purchases.

“This is a moment where some employers at least are taking stock of whether they’ve gone down the labor flexibility path a little too far,” says Susan Lambert, a University of Chicago professor who studies hourly work.

Full-time workers are the “glue” that holds businesses together, Ms. Lambert’s research has found. They help coordinate tasks and anticipate business needs, and are often more committed. These employees are more likely to go the extra mile on the job, such as tracking down an item online for a customer.

For customers, a full-time employee “gives them the same face every day. It builds a different feeling than the robot behind the counter,” says Sheetz Chief Executive Joe Sheetz.

On employee surveys, Sheetz’s full-time workers tend to report more commitment and willingness to put in extra effort than part-timers do. That engagement correlates with higher customer-service marks, says Stephanie Doliveira, Sheetz’s human-resources vice president.

Less than a quarter of Sheetz’s full-time staff leaves each year; for part-timers, 83% leave. Overall voluntary turnover at the company is down two percentage points from last year, saving $925,000 in recruiting and training, Ms. Doliveira says. Starting sales associates make $9 to $11 per hour and are eligible for paid time off; those working more than 30 hours per week get access to health insurance.

At Buffalo Wings & Rings, a restaurant with 50 locations in the U.S., full-timers ring up 6% higher sales per hour on average and have far lower rates of absenteeism than part-timers do,  according to CEO Nader Masadeh. The eatery has doubled its share of full-time workers since 2013, with about 37% of employees working full-time. The company’s training costs have fallen 25% as a result, according to Mr. Masadeh.

Churn among part-time workers prompted &pizza, a 14-store chain in the Washington, D.C., area, to halt new restaurant openings for a while, says CEO Michael Lastoria. Managers noticed that customers gave low ratings to new stores where inexperienced, often part-time, workers comprised 95% of staff. Some 31% of &pizza staff now workfull-time, up from 15% in 2014, and the chain is set to open seven additional stores this year, Mr. Lastoria says.

Having more full-time workers requires managers to adjust. Sheetz’s store managers initially resisted adding more full-timers when the company launched the initiative in the summer of 2014, Ms. Doliveira says. Used to having a big bench of part-time workers to call upon, they worried about being caught short when employees called in sick. Managers are also figuring out how to plan shifts now that more workers have vacation time.

Moving to full-time has come with health insurance and an extra $50 or so each week for Tammy Shepard, a salesperson at a Sheetz in Statesville, N.C. “It gives you a sense of security, which is a huge thing,” she says.

Full-time private industry workers make $25.44 an hour in wages and salaries, as compared with $13.29 for part-time workers, according to the Bureau of Labor Statistics.

“There’s a real penalty that workers pay for working part-time,” says Carrie Gleason, director of the Fair Workweek Initiative at left-leaning advocacy group Center for Popular Democracy.

The promise of a 40-hour work week was what spurred Ms. Cooper to apply to Sheetz, though she holds down another part-time job managing a nearby pub. Logging just 14 hours a week there has made it tricky to stay on top of everything, such as the new beers on the menu.

“It stinks when you don’t know certain things,” she says.

By RACHEL FEINTZEIG

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The Guardian - January 26, 2014, by Rose Hackman - Alicia White, 25, defied the odds of a poor background by attending college on a partial scholarship and going to graduate school. While she spends her days applying for jobs, the only work she has found so far is face-painting at children’s birthday parties.

“By going to college and graduate school, I thought I was insulating myself from being broke and sleeping on friends’ couches and being hungry again. The big, scary part is that I am going to end up where I was, but now I am going to be in that awful situation with $50,000 of debt,” White says.

White’s story is no exception. One in two college graduates are now either unemployed or underemployed. Millennials – even those from the middle class – are experiencing income inequality and America’s failed dream of upward mobility first-hand. The mismatch of college-educated young workers with low-wage, unskilled, precarious jobs is creating a new face of the once-dwindling American labor movement: young, diverse, led by millennials in their twenties and thirties, and fighting what they see as an unfair labor market. Their modest cause? Pushing for a higher minimum wage. 

Because of too many young people interested looking for work, these millennials reason that the labor movement is the only way to address large-scale poverty and income inequality – starting with their own. 

The "Fight for 15" movement is the most visible of these. Designed by the SEIU to raise the minimum wage from $7.25 an hour to $15 an hour, the effort has been driven by young activists. Last fall, the movement claimed its first legislative victory with residents in SeaTac, Seattle’s airport carrying suburb, voting to raise its minimum wage to $15 an hour. 

“There’s more enthusiasm than there has been probably in our lifetime for this,” says Ady Barkan, a 30-year-old Yale Law graduate and staff attorney at the Center for Popular Democracy in New York, indicating that the "Fight for 15" movement is picking up where Occupy Wall Street left off.  He calls it “part of a similar cultural moment”.  

It doesn't hurt the movement that the difference in pay between unionized and non-union jobs is pronounced. The median weekly earnings of union members in 2012 was $943, compared to $742 for those not in a union, the Bureau of Labor Statistics said in its recently released annual survey of labor. 

“The dismal prospects for young workers are underscoring the fact that you can’t rebuild an economy on low-wage jobs and that inequality has reached a point where it really is an existential crisis for America,” says Annette Bernhardt, UC Berkeley's visiting sociology professor, whose work has focused on the low-wage economy and inequality. 

Demographically, even the modest interest millennials have shown in the labor movement recently is a reversal of decades of disinterest. Unions have been ageing out of the economy along with their members, with nearly one in six union members aged 55-64, according to the BLS. Amid other trends – offshoring, automation, the growth of a service-centered economy – the share of national income that comes from labor unionshas been steadily falling since the 1970s. Union membership is at its lowest point in recent memory, with only 11.3% of Americans in unions. Critics, including the Center for American Progress blame those trends for the decline of the middle class. 

Membership in unions is low for millennials – with only 11% of union members falling in the 25-34 age group, compared to 16% for workers between 55-64 – but their political views tend to align with the labor movement. A Pew poll this June showed 61% of Americans 18-24 in favor of unions, with strongest support coming from women and minority groups. 

Diversity is more evident in the newer labor movement among millennials, reflecting the dominance of black and hispanic workers in unions nationally. 

Jose Lopez, 27, is an organizer who works with Make the Road New York, mobilizing fast food and car wash workers. His previous work within the same organization involved pairing up young community members and artists with local businesses to paint storefronts, raising awareness about police brutality and stop-and-frisk. Lopez plans on bringing the same type of creativity to mobilize people around issues of inadequate income and wage theft, he said.

Protestor Janah Bailey, 21, of Chicago, currently works two fast food jobs: one full-time at Wendy’s, which she says pays $8.25 an hour, and one part-time at McDonald’s, which pays $8.40. On one day last year, Bailey walked out on both jobs for strikes against low pay. She says $15 an hour would change her life “tremendously”, expecting she would only have to work one job to make ends meet and help support her family, and spend her newly acquired spare time on studying to open up her own business. 

The persistence of low wages is also mobilizing millennials who have never known a healthy job market. David Meni, 20, says he has held down a plethora of unpaid positions, internships and temporary jobs since his sophomore year of high school. His George Washington University chapter of the Roosevelt Institute’s Campus Network recently joined other local organizations in successfully pressuring the Washington DC city council to vote for an increase in the minimum wage to $11.50 an hour by 2016 from its current level of $8.50 an hour – despite the opposition of large corporations including Walmart. 

That is not to say that young people will revolutionize the labor movement immediately. Millennials have an uphill battle in turning around the decline of labor. Studies show that while millennials support unions, until now, they have rarely joined them, perhaps in the belief that their low-paying jobs were temporary. 

That perception may be changing as it becomes evident that lower wages are likely to be the norm for a long time.  

Many economists predict that low wages are likely to continue into 2014, as pressure continues from corporate executives eager to return profits to their shareholders – namely by keeping a lid on expenses like pay. In a research report this week, influential economist Jan Hatzius of Goldman Sachs directly ties the 6.5% rise of corporate profits to the nearly inert 2% growth of US wages. 

"The bottom line is that the favorable environment for corporate profits should persist for some time yet, and the case for an acceleration in the near term is strong," Hatzius wrote. "Eventually, the pendulum will swing back in the direction of lower profit margins and higher wages, but this still looks fairly distant."

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MarketWatch - August 22, 2014, by Greg Robb - With the economy mending, the Federal Reserve’s emphasis is “naturally shifting” to the debate over when to raise interest rates, the head of the U.S. central bank said Friday.

“With the economy getting closer to our objectives, the FOMC’s emphasis is naturally shifting to questions about the degree of remaining slack, how quickly that slack is to be taken up, and thereby to the question of under what conditions we should begin dialing back our extraordinary accommodation,” Fed Chairwoman Janet Yellen said in a speech opening the central bank’s summer policy conference in Jackson Hole.

Yellen said there was “no simple recipe” for the Fed to follow, but again warned that rate hikes could come sooner than expected if progress in the labor market continued to be more rapid than anticipated or if inflation moves up more rapidly.

Balancing this more hawkish tone, Yellen said 19 labor market indicators followed by the Fed suggest the decline in the unemployment rate overstates the improvement in overall labor-market conditions.

The initial reaction in the stock market was a muted one, with the Dow Jones Industrial Average DJIA, -0.18%   trading in a narrow range. Read Market Snapshot

Her comments “skirted around the issue of future monetary policy by noting that whilst there were a number of factors that might mean the labor market was less of a threat to inflation than in previous business cycles, equally, there were factors that might make it more so,” said ING economist Rob Carnell in a note to clients.

Yellen’s remarks about a shift in the Fed debate toward when, and under what conditions to tighten, lend credence to comments earlier this month from Richard Fisher, the hawkish president of the Dallas Fed, who said that the discussion among policy makers at their last meeting had moved in his direction.

Minutes of that meeting released on Wednesday were also judged by Fed watchers to be hawkish.

Perhaps sensing the shift, protestors have arrived for the first time in Jackson Hole this year urging the Fed to delay any rate hike.

Yellen gave no sense a rate hike was imminent. She noted the Fed still thinks that labor-market slack is “significant” and that the central bank has repeated it intends to hold rates close to zero for a “considerable time” after the Fed ends its bond-buying program, expected in October.

But her remarks suggest the first rate hike since 2006 is now on the table for active discussion.

Yellen and her allies on the Fed have signaled the first rate hike won’t happen until after the middle of next year. Hawks on the committee are pressing for an earlier move, and they have been vocal in speaking to reporters at Jackson Hole.

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