What is Community Labor United?

A long-term strategic partnership between Boston-area labor unions and the region’s progressive community organizations working in different sectors

United to mobilize our community members and unions to win concrete improvements and to build power for working families in the Greater Boston region

Dedicated to a combined program of coalition building, research, policy development and grassroots mobilization

CLU Mission

To protect and promote the interests of low and moderate income persons in the Greater Boston region through joint organizing campaigns.

To build regional power through work that is rooted in the principles of equitable development, economic justice, the protection of the right to organize for workers, tenants and communities.

To actively contribute to the broad-based social movement for systemic economic and social change.

To dedicate its efforts to creating a new political power center in Greater Boston region that directly competes with the existing strength of the corporate community.

The Hourglass Challenge: Creating a More Equitable Economy for Greater Boston

The Changing Face of Greater Boston: A Demographic Profile

The Hourglass Economy and It’s Implications for Equitable Regional Growth

Vital Signs: A Snapshot of Housing, Health, Transportation, and Education

Next Steps Toward Building an Equitable Regional Economy in Greater Boston

The Changing Face of Greater Boston: A Demographic Profile

4.4 million people live in the Greater Boston area The city of Boston is now “majority minority” with

over 50% people of color Since 1980: the Latino population has more than

doubled and the Asian population has increased five-fold

Brazilians account for 1 in every 5 immigrants Seniors (55 and up) represent almost 20% of the

population 75% of Boston residents between the ages of 14

and 17 are Black, Asian or Latino

A Tale of Two Cities: GrowingIncome and Wealth Inequality

Today, a wealthy family has the income of seven poor families

A typical household today makes less money than in 1989

People who are in the top 20% and already considered wealthy saw their income increase by more than 20%

People whose income is already below the poverty line saw their income decrease by 2%

Cha nge in M e a n House hold Incom e by Quintile , City o f Boston, 1989-1999

2 2 .0 %

5 .0 %3 .0 %3 .0%

-2 .0 %

-5%

0%

5%

10%

15%

20%

25%

Bo tto m fifth 2 n d Fifth 3 rd Fi fth 4 th Fi fth To p Fi fthPerc

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Source: Ec onomy 3.6.1, The Boston Indic ators Projec t 2004, The Bos ton Foundation, 2005. Race, 2005.

The Hourglass Economy

During the past three decades, the economy of Greater Boston has steadily shifted away from a manufacturing base

towards service jobs.

The result of this shift is the emergence of an 'hourglass' economy, with large

numbers of low-wage jobs at one end of the spectrum and high-wage jobs at the

other, but few opportunities in the middle.

High-Wage Jobs

Low-Wage Jobs

Boston Losing Good Jobs

Steady erosion of “good jobs” that pay high wages, offer union security and benefits

Service sector jobs traditionally non-union

Good jobs found in manufacturing and the public sector due to union organizing

12 Largest Employment Sectors--City of Boston 2003Sector Avg. Employ Avg. Wk Wage Health Care and Social Assistance 94,959 $973 Financial and Insurance 69,922 $2409 Professional and Technical Assistance 52,885 $1593 Accommodation and Food Service 40,817 $419 Administrative and Waste Services 33,757 $680 Educational Services 28,479 $980 Retail Trade 27,502 $542 Other Services 19,161 $582 Transportation and Warehousing 17,291 $847 Information 16,360 $1341 Manufacturing 13,488 $1276 Construction 12,778 $1327

The Hourglass Economy

Sector Avg. Employ Avg. Wk Wage Financial and Insurance 69,922 $2409 Professional and Technical Assistance 52,885 $1593 Information 16,360 $1341 Construction 12,778 $1327 Manufacturing 13,488 $1276 Educational Services 28,479 $980 Health Care and Social Assistance 94,959 $973 Transportation and Warehousing 17,291 $847 Administrative and Waste Services 33,757 $680 Other Services 19,161 $582 Retail Trade 27,502 $542 Accommodation and Food Service 40,817 $419

It Pays to Be in a Union

Across all workers, occupations and sectors in the U.S., union members earn 28% more in wages than non-union employees

52% of blue-collar workers in union shops earn $15.00 or more per hour, but only 17% of non-union workers make that much

30% of service workers in union shops earn $15.00 or more per hour, but only 15% of non-union workers make that much

In terms of total compensation (health care and retirement benefits), union members earn just over 30% more than non-union employees

Service Sector 10%

Manufacturing 8%

Fewer Manufacturing Jobs and More Low-Wage Service Sector Jobs

In the 1980s and 1990s, Suffolk County lost 47% percent of its manufacturing jobs and Middlesex County lost 75,000 manufacturing jobs

During that same period, Suffolk County added 85,000 service sector jobs and Middlesex County added 190,000 service sector jobs

71% of Boston’s projected new jobs through 2008 will be in service industries

Low-Wage Occupations: Largest and Growing Fast

XX$12.51Nursing aids&orderlies$11.84Janitors and cleaners

XX$11.16Home health aides

X$10.02Childcare workers

XX$13.26Human service assists

X$10.21Waiters & waitresses$8.36Counter attendants

XX$9.47 Food prep & fast food

Predicted Top Growth to 2010

Among Fastest Growing 2000-022005 Wages

Occupation

(one of MA’s 15 Largest)

12 of the 15 largest occupations in Massachusetts pay wages below $15 per hour Together these occupations make up more than 25% of Massachusetts total employment. Most of these low-wage occupations have grown fast in the past decade Many are projected to be among the state’s fastest growing occupations through 2010.

The Hidden Leading Sector: Non-Profit Institutions

Statewide, non-profits employ over 13% of the workforce Healthcare and Social Assistance is Boston’s single largest employer Education is the city’s 6th largest employment sector The area’s largest hospitals generate revenue that rival many

corporations

Hospital Revenue # Full-time Massachusetts General Hospital $1.1 billion 8,418 Brigham and Women’s Hospital $876 million 8,892 Boston Medical Center $721 million 4,345 Beth Israel Deaconess Medical Center $595 million 5,381 Children’s Hospital $526 million 4,401

A Temporary Town: The Growth of Contingent Employment in Boston

Q: What does “contingent” mean? A: Part-time, no job security, less pay and less or no benefits.

For example: Full-time contingent workers earned only 77% of what full-time

workers make Only 1/5 of contingent workers had health insurance from their

employer, while 1/3 of non-contingent workers had some kind of health insurance

Between 1983 and 1999, the number of workers in Suffolk County employed by temporary staffing agencies increased by 165

Boston Underground: Misclassification and Beyond

58,000 Massachusetts construction workers are misclassified by their employers as independent contractors

13-19% of all employers engage in misclassification

Why? Don’t pay payroll

tax on earnings Don’t pay

standard wages Don’t cover

workers with unemployment insurance

Don’t pay workers’ compensation for injuries

Employers save big money and make even

bigger profits

The Informal Economy

The Rising Cost of Living

According to the Economic Policy Institute, Boston is now the most expensive metropolitan area in the country, more expensive than even New York City

EPI calculates that the annual income a 2 parent/2 kid family needs to meet basic needs in Boston is $64,656. New York is $58,656 and San Francisco is $57,624.

Housing prices have gone up faster than wages 25% of all families in Massachusetts, and nearly 50% of urban families, do

not earn enough to meet their basic needs.

Income

Median household income: $39,629

By race: White: $47,668 Blacks: $30,447 Asians: $27,963 Latinos: $27,141

Median Household Income by Race/Ethnicity,

City of Boston, 2004

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

Black Asian Latino White, not Latino

All

Source: Economy 3.6.2, The Boston Indicators Project 2004, The Boston Foundation, 2005.

On average, across race and education level, women earn 50% less than men

Poverty

During 2004-2005, almost three-quarters, or 74%, of all students in Boston public schools qualified for free or reduced lunch.

According to the U.S. Census, the poverty rate for Massachusetts in 2005 was 10.3%.

According to a MassINC report, 15.9% of immigrants were poor in 2000.

P ove rty Ra te s by Ra ce /Eth nicity, M e tro Bo sto n, 1999

16.2%

20.4%

6.8%

27.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

A s ian Blac k Latino W hite

Sourc e: Bey ond Pov er ty : McA rde l, N. (2003). Rac e and Concetra ted-Pover ty Neighb orhoods in Metro Bos ton. The Civ il Rights pro jec t, Harv ard Univers ity .

Unemployment

The REPORTED unemployment rate is approximately 5%, but this figure does not consider those who are discouraged from looking for work.

Although Boston is now a 'majority minority' city, whites still make up the bulk of the metropolitan workforce.

As of 2004 the city's workforce was 85 percent non-Latino white. Unemployment rates in 2000 for blacks and Latinos more than doubled that of whites, with

Asian rates somewhat higher than that of whites

Unemployment by Race - City of Boston, 2000

0,00%

1,00%

2,00%

3,00%

4,00%

5,00%

6,00%

7,00%

8,00%

White* Asian Black* Hispanic

Racial Group (* denotes non-Hispanic)

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Housing Costs

Boston rental housing costs rose 60% in only 5 years--from 1998 to 2003

3/4 of low-wage working families spend more than 1/3 of their income on housing

A minimum wage earner (earning $7.50 per hour) can afford monthly rent of no more than $360

a full-time worker in Boston would need to earn an hourly wage of $27.58 in order to be able to pay the fair market value for a two-bedroom apartment according to HUD.

In the past 25 years, the average price of housing in the Commonwealth has increased more than in any other state

Rental Costs Home Ownership In 2005, the median priced single-

family home in Boston cost $394,874--this means over 79% of families in Boston could not afford to purchase a home.

A projected 15,600 units are needed to meet housing demand annually

Affordable units constructed for those making 80 percent or less of median income is less than half of what is needed

Hunger and Health Care

According to the Massachusetts Division of Health Care Finance and Policy, 7.8% of Boston residents had no health insurance in 2004.

Low-income residents earning up to 300% of the federal poverty level will have to spend between $30 and $140 a month to buy health coverage under the state's new mandatory insurance law

Nearly 1 in 4 people receiving food support were actually working

Transportation

Today, transportation is the second largest household expense category after housing

The average household income in the Greater Boston area spends $7,175 on transportation per household

Households under the poverty level spend almost 40% of their household income on transportation

From 1990 to 2003, fares for subway and bus increased much faster than the cost-of-living, and even faster than the price of gasoline.

The average public transit commuter in Massachusetts spends 40 minutes on the bus or subway

Working Together with CLU

Equitable Distribution of Public Revenues

Negotiating Community Benefits Directly with Developers

Increasing Public Participation in the Decision-Making Process

Planning and Zoning Reform Wage Standards Lowering Barriers to Unionization