The State of Our Union Grows Stronger
The State of Our Union Grows Stronger
Braille Monitor
March 2014
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The State of Our Union Grows Stronger
by Anil Lewis
From the Editor: February 12 was Abraham Lincoln’s birthday, and it is special for blind people for yet another reason, which Anil Lewis will explain. Anil wears many hats in the National Federation of the Blind, but none of them is more important to him than the one he puts on each day as he crusades for the elimination of the subminimum wage provisions found in Section 14(c) of the Fair Labor Standards Act. Here is what he says:
In his State of the Union Address, President Obama told the Congress that he would be issuing an Executive Order to set a wage floor of $10.10 per hour for all federal contract employees.
“To every mayor, governor, state legislator in America, I say, you don't have to wait for Congress to act; Americans will support you if you take this on. And, as a chief executive, I intend to lead by example. Profitable corporations like Costco see higher wages as the smart way to boost productivity and reduce turnover. We should too. In the coming weeks I will issue an Executive Order requiring federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour because if you cook—(cheers, applause)—our troops' meals or wash their dishes, you should not have to live in poverty. (sustained applause) Of course, to reach millions more, Congress does need to get on board.”
The president’s address did not make it clear whether workers with disabilities would be covered in the proposed Executive Order. We received our answer on a subsequent telephone conference with Vice President Biden and Department of Labor Secretary Perez the following day. It was reported in an article in the Disability Scoop on January 30:
Workers With Disabilities Left Out Of Obama Wage Plan
by Michelle Diament
In a call this week with US Secretary of Labor Tom Perez and Vice President Joe Biden, disability advocates say they were told that the Executive Order would not alter the ability of approved federal contractors to continue paying people with disabilities less than minimum wage, though such workers could see a slight uptick in pay. That’s because subminimum wage is often calculated as a percentage of the pay that a typical worker would earn for the same job.
We recognized this as the administration’s assertion that Section 14(c) of the Fair Labor Standards Act would prohibit workers with disabilities under federal contracts from receiving the same wage protections being offered to those without disabilities. The article goes on to say, “White House officials declined to offer specifics about the Executive Order Obama will issue, but said that any changes to the current subminimum wage laws would require action from Congress. Further details about the Executive Order will be released `in the near future,’ an administration spokesman said.”
Unwilling to wait on further details, members of the NFB and other organizations of people with disabilities mounted a letter-writing, email, and social media campaign urging that the Executive Order include workers with disabilities. The following letter was sent by President Maurer pressing for the inclusion of disabled workers and also urging the President to announce that he will sign the Fair Wages for Workers with Disabilities Act, HR 831, when it reaches his desk. The reference to Sergeant First Class Cory Remsburg, who is a wounded warrior highlighted by the president during the State of the Union address, is part of our continuing effort to demonstrate that it is not the disability but the perception of incapacity that presents the greatest challenge for workers with disabilities to obtain competitive, integrated employment. Here is President Maurer’s letter:
February 3, 2014
President Barack Obama
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC 20500
Dear Mr. President:
In your January 28th State of the Union Address, and via a conference call with Vice President Biden and Secretary of Labor Perez on January 29th, it was announced that all contractors would be required by Executive Order to pay their federally funded workers at least $10.10 an hour under any new contracts. The National Federation of the Blind, the oldest and largest nationwide organization of blind Americans, urges you to include workers with disabilities in this Executive Order, affirmatively and explicitly. We further urge you to announce that you will sign the Fair Wages for Workers with Disabilities Act (HR 831) if and when that legislation reaches your desk. With a Republican sponsor and substantial Democratic cosponsorship, this nonpartisan piece of legislation will responsibly phase out the discriminatory practice of paying workers with disabilities less than the minimum wage.
Our respect and prayers go out to Americans like Sergeant First Class Cory Remsburg, who are willing to make the ultimate sacrifice for the freedom and equality we seek to enjoy as American citizens. We are thankful that Sergeant Remsburg is recovering from the wounds he suffered in service to this great nation. But we must point out that his value to our society is not a function of the restoration of his eyesight and ability to walk, but of the simple fact that he is a human being with determination, belief in himself, love for the United States, and aspirations for his future. There are millions of others who actively seek to serve this nation we love with our unique talents and strengths, whether or not we can benefit from technology or medical intervention that will mitigate or eliminate our disabilities. Some of us may be blind in both eyes; others may not be able to hear; some may be unable to walk; some may have developmental disabilities that require innovative interventions; and still others may have other disabilities that require them to perform everyday tasks a little differently. We seek to have our different characteristics embraced as respected contributions to our nation’s diversity, not as badges of inferiority that condemn us to a life of low wages and low expectations. We are no less valuable, we are no less capable, and we are no less American than any other citizen.
We wholeheartedly agree with you when you say, “The America we want for our kids--a rising America where honest work is plentiful and communities are strong; where prosperity is widely shared and opportunity for all lets us go as far as our dreams and toil will take us--none of it is easy. But if we work together; if we summon what is best in us, the way Cory summoned what is best in him, with our feet planted firmly in today but our eyes cast towards tomorrow--I know it’s within our reach.” We believe that this America includes people with disabilities, and we ask you to demonstrate that you believe it as well.
Sincerely,
Marc Maurer, President
NATIONAL FEDERATION OF THE BLIND
cc: Vice President Joseph R. Biden
The Honorable Thomas E. Perez
As a result of our discussion with the Obama Administration and the work of other organizations representing the disabled, the following press release came from the White House on February 12, 2014:
Opportunity for All: Rewarding Hard Work
Raising the Minimum Wage through Executive Order to $10.10 for Federal Contract Workers
And Calling on Congress to Finish the Job for All Workers by Passing the Harkin-Miller Bill
White House Press Release February 12, 2014
Today, continuing to fulfill his promise to make 2014 a year of action, the President will sign an Executive Order to raise the minimum wage to $10.10 for federal contract workers.
The Executive Order the President will sign today will benefit hundreds of thousands of people working under contracts with the federal government who are making less than $10.10 an hour. It will also improve the value that taxpayers are getting from the federal government’s investment. Studies show that boosting low wages will reduce turnover and absenteeism, while also boosting morale and improving the incentives for workers, leading to higher productivity overall. These gains improve the quality and efficiency of services provided to the government.
In his State of the Union Address, President Obama pledged both to take executive action wherever he can and to work with Congress to increase opportunity for all Americans. Consistent with that pledge, the President will continue to work with Congress to finish the job to raise the minimum wage for all Americans and pass the Harkin-Miller bill so that all workers can be paid at least a $10.10 minimum wage.
Details of the Executive Order
The Executive Order will raise the minimum wage to $10.10 effective for new contracts beginning January 1, 2015. The higher wage will apply to new contracts and replacements for expiring contracts. Boosting wages will lower turnover and absenteeism and increase morale and productivity overall. Raising wages for those at the bottom will improve the quality and efficiency of services provided to the government.
Benefits hundreds of thousands of hardworking Americans. There are hundreds of thousands of people working under contracts with the federal government to provide services or construction who are currently making less than $10.10 an hour. Some examples of the hardworking people who would see their wages go up under this Executive Order include nursing assistants providing care to our veterans at nursing homes, concessions workers in National Parks, people serving food to our troops, and individuals with disabilities working to maintain the grounds on military bases.
Includes an increase in the tipped minimum wage. This Executive Order also includes provisions to make sure that tipped workers earn at least $10.10 overall, through a combination of tips and an employer contribution. Employers are currently required to pay a minimum base wage of $2.13 per hour, a base that has remained unchanged for over twenty years, and, if a worker’s tips do not add up to the minimum wage, the employer must make up the difference. Under the Executive Order employers are required to ensure that tipped workers earn at least $10.10 an hour. The Executive Order requires that employers pay a minimum base wage of $4.90 for new contracts and replacements for expiring contracts put out for bid after January 1, 2015. That amount increases by 95 cents per year until it reaches 70 percent of the regular minimum wage, and, if a worker’s tips do not add up to at least $10.10, the employer will be required to pay the difference.
Covers individuals with disabilities. Under current law workers whose productivity is affected because of their disabilities may be paid less than the wage paid to others doing the same job under certain specialized certificate programs. Under this Executive Order, all individuals working under service or concessions contracts with the federal government will be covered by the same $10.10 per hour minimum wage protections.
Improves value for the federal government and taxpayers. One study showed that, when Maryland passed its living wage law for companies contracting with the state, there was an increase in the number of contractors bidding, and higher competition can help ensure better quality. The increase will take effect for new contracts and replacements for expiring contracts put out for bid after the effective date of the order, so contractors will have time to prepare and price their bids accordingly.
Continuing to Work With Congress, States and
Localities to Help All Workers
The President is using his executive authority to lead by example and will continue to work with Congress to raise the minimum wage for all Americans by passing the Harkin-Miller bill. The bill would raise the federal minimum wage for working Americans in stages to $10.10 and index it to inflation thereafter, while also raising the minimum wage for tipped workers for the first time in over twenty years. The President will also continue to support and encourage state, local, and private-sector efforts to increase wages and help more working families.
Businesses like Costco have supported past increases to the minimum wage because it helps build a strong workforce and profitability over the long run. Low wages are also bad for business, since paying low wages lowers employee morale, encourages low productivity, and leads to frequent employee turnover—all of which impose costs.
Across the country Americans are saying it’s time to raise the minimum wage. The President believes that it’s time for action, and people across the country agree. Since the President called for an increase in the minimum wage in last year’s State of the Union, five states have passed laws increasing their minimum wage. And many businesses, from small businesses to large corporations, see higher wages as the right way to boost productivity and reduce turnover and therefore boost their profitability.
Raising the minimum wage is good for government and good for business and workers and key to a stronger economy. A range of economic studies show that modestly raising the minimum wage increases earnings and reduces poverty without jeopardizing employment. Higher wages can also boost productivity, increase morale, reduce costs, and improve efficiency.
Raising the minimum wage will make sure no family of four with a full-time worker has to raise its children in poverty. It has been seven years since Congress last acted to increase the minimum wage, and, adjusted for inflation, today the real value of minimum wage is roughly the same as what it was in the 1950s, despite the fact that the typical American family’s income has doubled since then. And right now a full-time minimum wage worker makes $14,500 a year, which leaves too many families struggling to make ends meet. Even after accounting for programs like the Earned Income Tax Credit, a family of four supported by a minimum-wage worker still ends up living below the poverty line.
Indexing the minimum wage to inflation would help lower-income workers keep up in the future. Since it was first established in 1938, the minimum wage has been increased twenty-two times, but was eroded substantially over several prolonged periods between increases because of inflation. Indexing would prevent a repeat of the 34 percent decline in the real value of the minimum wage from 1978 to 1989 and the 19 percent decline in real value from 1998 to 2006, as well as the 40 percent decline in the real value of the base wage for tipped workers since it was last raised in 1991. Last year alone workers earning the minimum wage basically got the equivalent of a $200 pay cut because the minimum wage stayed the same while the cost of living went up. Democrats and Republicans agree that indexing the minimum wage to inflation would ensure that working families can keep up with expenses. Unfortunately, those families will continue to suffer if Congress continues not to act.
Helping parents make ends meet. Around 60 percent of workers who would benefit from a higher minimum wage are women. Less than 20 percent are teenagers. Also those workers who would benefit from an increase in the minimum wage brought home 46 percent of their household’s total wage and salary income in 2011. Raising the minimum wage directly helps parents make ends meet and support their families.
Here is the press release that the National Federation of the Blind circulated as soon as possible following receipt of the release from the White House:
National Federation of the Blind Commends President Obama for Executive Order on Wages
Order Ensures Economic Mobility for Federal Contract Employees with Disabilities
The National Federation of the Blind (NFB) commented today on President Obama’s Executive Order requiring a wage floor of $10.10 for individuals employed under all new federal contracts, including workers with disabilities who are currently excluded from minimum wage protections under special certificate programs.
Dr. Marc Maurer, president of the National Federation of the Blind, said:
“President Obama’s courageous action today is a tremendous victory for federal contract workers with disabilities, and we wholeheartedly applaud the spectacular step forward that this new Executive Order represents. The National Federation of the Blind commends President Obama for recognizing the value of workers with disabilities and ensuring that these workers can take advantage of the same opportunity for economic mobility as their nondisabled co-workers. We urge Congress to finish the work that President Obama has begun by passing the Fair Wages for Workers with Disabilities Act (HR 831) to ensure that all workers with disabilities, not just those working under federal contracts, will no longer be subjected to the antiquated and discriminatory practice of being paid less than the federal minimum wage.”
We thank and applaud the president for having the courage to make the right decision to include workers with disabilities in his Executive Order. However, we realize this is only one battle in our ongoing war to repeal the unfair, discriminatory, and immoral subminimum wage practice made legal by Section 14(c).
At the time of this writing the Fair Wages for Workers with Disabilities Act, HR 831, sponsored by Congressman Gregg Harper of Mississippi, has sixty-five cosponsors, with the recent addition of Congressman George Miller of California, who is the ranking member of the Education and Workforce Committee, to which HR 831 has been assigned.
The state of our union grows stronger as we are afforded the opportunity to participate fully. We will celebrate yet another victory on our path toward full inclusion, but we must systematically plan our next steps. As I told President Maurer on our way back to Baltimore following the signing of the Executive Order at the White House, “Days like today make for difficult tomorrows. It just doesn’t get any better.”
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