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Archive for the ‘Wage Theft’ Category

After spontaneous strike to protest wage issues, textile workers’ partnership with community organization and union leads to victory

As national union rates hit all-time low, victory shows promise of community partnerships, immigrant organizing for reversing labor’s decline

The mostly Latino immigrant packers and machine operators of Artistic Stitches, Inc., an embroidery company with contracts with some of Chicago’s largest businesses like Chase Bank, declared victory Thursday after a job walkout in protest of wage issues and an innovative community organization/union partnership led to a successful union drive.

At a time when American union rates have reached their lowest in nearly a century, the campaign shows the potential for the labor movement’s revitalization with innovative new organizing strategies.

“Union membership is at an all-time low, but it doesn’t have to be that way,” said Jorge Mujica, organizer for Arise Chicago.

Jorge Mujica, Arise Chicago and Richard Monje, Workers United

Jorge Mujica, Arise Chicago and Richard Monje, Workers United

Concerns about job security and possible violations of Illinois minimum wage law led the workforce to walk off the job the day after Thanksgiving. Workers were laid off near the end of every year, then rehired as apprentices, at apprenticeship wages–despite the fact that many had worked at the factory for years. They did not receive any holiday pay despite working through major holidays like Thanksgiving, which proved to be the last straw for workers who walked off the job the day after Thanksgiving this year.

“We decided to walk off the job because management said they weren’t going to pay us holiday pay for working on Thanksgiving,” said Juana Cortez, a worker at the factory.

The mostly immigrant work force stood together to demand they be treated with dignity and respect on the job.

“Now, we can defend ourselves from the mistreatment, have paid vacations and holidays. Now, there can be equality,” said Juana Cortez.

Workers approached the interfaith workers’ rights organization Arise Chicago, who assisted in organizing co-workers to know their rights on the job. Selecting Workers United as their union with which to affiliate, the workers petitioned the National Labor Relations Board for an election. Last week, the workers won by a decisive majority and now have union representation.

“The relationship between the workers center and our union has been perfect,” said Margarita Klein, staff director of Workers United.  “And this is only the beginning.”

Cortez had the following message for other workers in a situation like hers: “If something unjust is happening to you at work, there are organizations like Arise and Workers United that can help protect you.”

The campaign’s success shows the potential for labor’s revitalization at a time when it is in deep distress. Recently released figures from the Bureau of Labor Statistics indicate that union membership is at its lowest percentage in nearly a century, leading many commentators to declare that labor is continuing to die a slow, agonizing death. The Stitches workers’ victory demonstrates this is not the case.

“If you are only thinking of traditional campaigns and old forms of worker organization, you may be disappointed. But when you adopt a broader view, like our point of view on the ground, you see signs of hope and progress. Workers organizing in nontraditional sectors, who are self-organizing, who are striking first–successful campaigns like these show that there are actually very promising signs of life to be found in the movement. Labor can turn the corner with nontraditional organizing strategies like the ones these workers used,” said Adam Kader, Arise Chicago Worker Center program director.

The rise of alternative organizing strategies nationally shows that many workers want to organize.

“It isn’t that workers don’t want representation,” said Kader. “Workers are clearly hungry for a voice on the job. Dozens of low-wage sector workers contact Arise Chicago’s Worker Center office daily, detailing incredible amounts of abuse. But many times, these workers don’t have access to unions.  Workers, like those at Stitches did, reach out to different organizations–often churches–for help, who are connected to Arise Chicago. When community groups like Arise work together with unions like Workers United, we can help bridge that gap so workers’ rights can be respected on the job.”

In addition, promising gains have been made for labor nationally in states like California, where, over the last year, union membership has actually increased by 110,000 members, largely because unions have taken the organizing of immigrant workers seriously.

For a full revitalization of the labor movement, new member organizing must be paired with political activity and advocacy for stronger public policies to protect workers.  The Stitches workers’ win comes on the heels of a major victory for workers in Chicago’s city council: the passage of anti-wage theft legislation that makes it possible for the city of Chicago to revoke business licenses of businesses found guilty of wage theft. Arise worked with Ald. Ameya Pawar (47th ward), the bill’s sponsor, to draft the bill.

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by Adam Kader

As a result of months of collaboration between Arise Chicago and Alderman Ameya Pawar (47th ward), last Thursday the City of Chicago passed an ordinance stating that, should an employer be found guilty of wage theft, the city’s Department of Business Affairs and Consumer Protection could revoke the owner’s business license.

The victory garnered significant media attention in the English and Spanish-speaking media.

Ald. Pawar“When I attended Arise Chicago’s launch event for the car wash campaign, where I learned that the average car wash worker has $4,413 stolen each year, nearly a third of their income, I felt an urgency to begin work on this ordinance,” Pawar stated.

Arise Chicago worked with Pawar to develop the concept, and with the mayor’s office to craft the language of the ordinance, which was then given a two-day hearing in the city’s Licensing Committee and moved to the entire City Council for a vote. The ordinance passed unanimously.

When Alderman Pawar spoke at the City Council meeting, he commented, “This will be a good ordinance for workers and the ethical business owners of Chicago…I commend the great work and leadership of Arise Chicago in leading the fight for this ordinance.”

The legislation is significant because it makes Chicago the second and largest city in the nation to enact such a policy. The National Employment Law Project’s publication on wage theft legislation identifies license revocation policies as a “top pick” for best practices.

This ordinance has a wide-ranging impact, effectively covering all workers who are employed by a business that needs a license to operate. But those who stand to gain the most are those workers who are the most marginalized: immigrant workers and workers of color, working in non-union and low-wage industries. Indeed, in its landmark report, the UIC Center for Urban Economic Development estimates that $7.3 million is stolen in workers’ wages in a single week in Cook County. The report also finds that immigrants are 1.5 times more likely than native-born workers to have their wages stolen, and African Americans are 27 times more likely to have their wages stolen than their white counterparts.

LilianaArise Chicago Worker Center member Liliana Baca’s story dramatizes how egregious wage theft can be: “I worked for over 60 hours a week for five years at a grocery store. And I never received overtime pay. This is my wage theft story. But I’m not the only one who has a story. So many people have had their wages stolen, and this ordinance will help them recover their wages and prevent wage theft from happening to other people.” Arise Chicago’s Worker Center has worked for years with over 3,000 workers like Liliana (above)  recover more than $5 million in stolen wages and owed compensation.

When workers’ wages are stolen, it affects their family and community life. As Alderman Pawar reflects in his ward newsletter, “These stolen wages are not going to pay down consumer debt, not going to purchase consumer goods nor are put to work in our economy through sales and income taxes. When employers steal from their employees, everybody loses.”

Wage theft hurts ethical businesses, too, by creating unfair competition for employers who want to follow the law but find themselves in a market flooded with competitors able to undercut them by stealing workers’ wages. In the Chicago car wash industry, for example, extreme wage theft is the norm, making it nearly impossible for ethical businesses to compete.

Ethical businessman David Launius, owner of We’ll Clean Car Wash, says “the human element of business is the most important.” Writing in support of the ordinance in a letter submitted to the Licensing Committee, Launius stated, “We care about the well-being of our staff. We are proud to partner with Arise Chicago to ensure that our workers are the best treated in the industry.”

Fellow Chicago worker centers, including Centro de Trabajadores Unidos/Immigrant Workers’ Project, Chicago Workers’ Collaborative, Latino Union, and Restaurant Opportunities Center brought organizers and worker members to testify in the Committee hearing in support of the ordinance.

The ordinance’s passage is a historic victory for workers because it signals that the City of Chicago will not tolerate wage theft. Perhaps Arise Chicago Worker Center member Maria Garcia best sums this up when she states, “Now the bosses are going to know that the workers have rights, too.”

–Adam is the Worker Center Program Director at Arise Chicago

Media Highlights

Salon

The Guardian

In These Times

Telemundo

click photo at right for video clip

Think Progress

Chicago Reporter

La Raza 

Portside

Clasp                               

DNAinfo.com

Progress IL                       

Lincoln Square Patch

47th Ward Newsletter

Arise Chicago YouTube video of press conference

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As a result of the months of collaboration between Arise Chicago and Alderman Pawar (47th ward), on Thursday, January 17th, the City of Chicago passed an ordinance stating that, should a business owner be found guilty of wage theft, the owner’s business license could be revoked. This makes Chicago the largest city in the country with anti-wage theft legislation. The ordinance, endorsed by the National Employment Law Project as one of the strongest actions a municipality can take to combat wage theft, will impact hundreds of thousands low-wage workers and their families in Chicago.

Ald. Pawar

“This ordinance helps change the conversation about good business. To be pro-business also includes caring about how employees are treated,” reflected Alderman Pawar (right).   “I think this marks an important step in leveling the playing field for the many ethical business owners in our city.”

Arise Chicago Worker Center member Liliana Baca (below) said, “I worked for over 55 hours a week for five years at a grocery store.  And I never received overtime pay. This is my wage theft story.  But I’m not the only one who has a story.  So many people have had their wages stolen, and this ordinance will help them recover their wages and prevent wage theft from happening to other people.”

Liliana

The ordinance gives desperately-needed tools to the city of Chicago to ensure employers obey the law.

Follow the latest on the new anti-wage theft ordinance by joining Arise Chicago on Facebook and Twitter.

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By: Shelly Ruzicka

On Saturday, June 2nd, Noemi Hernández led a group of over 30 community supporters to confront her former employer at Gislex Bridal, located in the Little Village Discount Mall.  Noemi is a member of the Arise Chicago Worker Center who first came to the center with concerns about working conditions at the bridal shop.  After talking with Worker Center organizers, they discovered she was owed over $9,700 in wages from her 10 months working at Gislex.  Because the store’s owner pays its workers $55-60 per day for a ten hour shift, 5 days a week, Noemi was earning about $6 per hour, far below the Illinois $8.25 minimum wage, and no overtime.  After Noemi presented a letter from Arise expressing concern about the wages and working conditions at Gislex, the employer fired her.  The owner, Maribel Flores, has refused to meet and has not returned phone calls from Arise, prompting Noemi and the Worker Center to hold a more creative action to get the employer’s attention.

Leading a mock bridal party decked out in veils, dresses, ties, corsages, buttoners, and flower bouquets, Noemi carried a hand-made sign that asked customers not to support a business that abuses its workers. One supporter carried an over-sized price tag for the $9,700 owed to Noemi.  Another had a giant receipt for Gislex with line items for the unpaid minimum wage, overtime, and last week of wages.

         

The group entered the Discount Mall to present a letter, the price tag, and receipt to the shop owner.  A Gislex worker told the crowd that the owner knew they were there and was leaving.  This marked the second time owner Maribel Flores had run away from Noemi and Arise when they tried to meet with her.  The group then paraded through the Discount Mall handing out flyers to curious customers and chanting, “Queremos justicia en La Villita!” or “we want justice in Little Village!”  Then Noemi and the  “bridal party” led a picket outside chanting “Follow your vow, pay Noemi now!” and “What do we want? The minimum wage!  When do we want it? Now!” all the while also engaging mall customers.

When the group processed back across the street to where they started, Arise organizers and Noemi debriefed with supporters.  Noemi said that while she first felt nervous approaching her former workplace, the large group of supporters energized her.  One of her friends who attended the action was extremely passionate, saying, “It’s so important we did this to show all the other workers, especially Latinos, that they can stand up.  It’s wrong that this is happening, but even worse that it’s in our own Latino community, right on 26th Street.”

While the owner was not present to accept the demand letter or to speak with her former worker, Noemi said she felt good about the action.   When asked if they thought the owner still heard the group’s message demanding justice, everyone unanimously replied with a resounding “yes!”  Each person also expressed commitment to support Noemi at additional actions if needed.

To stay up to date on Noemi’s campaign for justice at Gislex, subscribe to Dignity at Work and to Arise Chicago’s e-news/action alert list at www.arisechicago.org.

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-Shelly is the Director of Operations at Arise Chicago

-Photos by Shelly Ruzicka.  More photos on Arise Chicago’s Facebook album.

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Nearly 80 Rolf’s workers gathered in the shadow of their former employer to denounce the company’s abrupt and unexpected mass firing, and for stealing workers’ final paychecks. They announced the filing of a class-action lawsuit against Rolf’s president Lloyd Culbertson, charging that their unannounced terminations are in violation of the WARN Act.

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Rolf’s workers were told on Dec. 10th that their plant would be briefly closed for cleaning on the 11th, but they should report as usual on Dec. 12. On the 11th, the factory’s president and owner Lloyd Culbertson–a former investment banker–asked the production manager to log him into the company’s web site, then demanded the worker leave the room. Thirty minutes later, workers checked the company’s site. They were shocked to discover a three-sentence announcement that the plant was now closed. Culbertson had not informed any of the plant’s 136 workers of the plant’s impending closure; the site’s announcement was the first any employee had heard that they were terminated.

Arise Chicago had previously assisted one Rolf’s worker to recover his owed vacation and file a health and safety complaint with OSHA, resulting in a fine against the company.  Upon the bakery’s closure, they organized their co-workers and reached out to Arise Chicago.  Arise Chicago worked with the former Rolf’s employees to organize their co-workers and file their lawsuit.

Today, a majority of former Rolf’s workers gathered to speak out about their illegal and immoral treatment. They called on Lloyd Culbertson to pay them the wages and severance that he owes them.

Check back here or on Arise’s Facebook page for more updates on the Rolf’s case. If you’d like to use any pictures from today’s action, feel free. For a PDF of the law suit that has been filed against Rolf’s, click here.

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by Micah Uetricht

If you worked somewhere for 16 years only to find out that you had been paid below the minimum wage the whole time, what would you do? Kick yourself for not knowing the law and pledge not to be duped next time? Or fight for what you are owed according to the law?

Miguel Brito, a member of Arise’s mesa directiva, chose the latter. He worked as a butcher at Doña Mari’s #2 in the Albany Park neighborhood of Chicago for over a decade and a half; after learning about his rights on the job through his involvement with Arise and his attendance at various workshops, he realized that during those years, he was consistently paid below the minimum wage and was not paid overtime for the many weeks he worked over 40 hours. Arise contacted his former employer about his back wages, offering a settlement of less than 20 percent of the actual money Miguel was owed, according to Arise’s calculations.

A settlement of less than one-fifth of the actual money a worker is owed is quite a generous offer. But, speaking through their lawyer, the store’s owner refused the amount, insisting on a figure that was half of that 20 percent. This figure was not satisfactory to Miguel, and Arise called for a protest outside of Doña Mari’s #2, at 3518 W. Montrose.

The action, on Monday, August 1, drew a large crowd of about 25, attended by community members from the Centro Autonomo in Albany Park, the Stand Up! Chicago coalition, Chicago Alliance of Charter Teachers and Staff, and others from around the city. Chanting “Pay your worker!” and “Stealing isn’t funny, pay back the money!” protesters picketed in front of the store while talking to curious onlookers from the neighborhood about Miguel’s demands.

Neighbors were no doubt unaccustomed to pickets and bullhorn-amplified chants on their block–particularly when those protesters are brandishing giant fake meat cleavers reading “Stop Chopping Wages”– and many came over to discuss why Arise was protesting the store. Doña Mari’s #2, for its part, immediately locked its door when protesters arrived; employees inside refused to speak to members of the media who requested interviews (though one did come to the door as the protest was winding down to flip his middle finger at us).

Doña Mari’s #2 is a small store that is no doubt an important part of its surrounding community–many Albany Park residents depend on the store for groceries and other basic needs. But paying workers the minimum wage is a basic requirement of any employer, no matter the business’s size. The community members we talked to on Monday understood this, and many expressed their support for Miguel’s struggle. It’s easy to imagine the store’s image suffering greatly in the community if its owners continue to refuse to pay their former worker what he is owed.

Since the protest, Arise organizers have been in contact with the store’s owner, though no settlement has been reached. If Doña Mari’s #2 continues to refuse to pay Miguel what they legally owe him, Arise may be hitting the streets of 3518 W. Montrose again.

Watch the video from Monday’s action:

- Micah is an Organizer at Arise Chicago.

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by Jamie Hayes

In our work at Arise Chicago, we’ve lately noticed a dangerous new trend: employers are forcing employees to work as contractors, in order to subvert labor laws and their responsibility as employers.

Campaign #1

Margarita (pseudonym) worked for 2 years at a laundromat in the Albany Park neighborhood.  She was paid $5/hour, worked over 40 hours a week but never received overtime payment, and worked seven days per week. When Arise contacted her employer to inform him of his legal responsibility to pay employees minimum wage and overtime, and to give employees one day of rest per week, he tried to shirk responsibility by claiming that Margarita was actually an independent contractor.  Since Margarita could not make her own schedule, perform her work autonomously, nor bid out the work (the basic marks of a truly independent contractor), this defense was fairly preposterous. However, we are seeing a rise in savvy employers who force employees to sign contracts and incorporate, all for the privilege of toiling day in and day out for the same abusive employer, often at rates below minimum wage, and outside of the jurisdiction of OSHA, the Department of Labor’s Wage and Hour Division, and the other government agencies that enforce workers’ rights.

Campaign #2

Luis (pseudonym) worked for a suburban window and gutter washing company for 8 years.  Though the company had forced him to sign a contract stating that he was a contractor, and had forced him to incorporate, he was indeed an employee of the company: he reported to the same manager and same office day-in and day-out, he could not set his own hours or take on his own clients, and he could not bid out his own jobs. One day, he fell off of a roof two stories high.  Luis was injured badly, but thankfully survived the fall.  Though the company had forced him to sign contracts saying he was not an employee, the company knew that these contracts may not hold up throughout the workers compensation process.  Thus, the company settled out of court. The settlement was not large, but at least covered the cost of his medical bills.  Another worker had a very similar experience at this company, falling off a roof and then winning a settlement out of court.

Upon Luis’ return to work after an extended recuperation period, rather than providing workers fall prevention training and safety equipment, instead the company forced workers to sign even tighter contracts, and to purchase their own workers’ compensation insurance (conveniently deducted from their paychecks).  Workers get to keep 50% of the cut, but must also provide their own transportation, pay for their own gas, cover any damages to homes, pay twice as much in tax as employees, and pay out their assistants (the company insists that all workers hire assistants, again violating the autonomy of a truly independent contractor).  At the end of the day, sometimes workers barely make enough money to cover their expenses. Luis reports that oftentimes he shows up to a job, only to find out that the company has improperly bid out the job.  For example, clients have more windows than reported, or different types of windows that take many hours to clean. However, Luis is forbidden from charging clients more for this extra work.  Additionally, the company provides clients with coupon promotions–promotions that come out of workers’ paychecks, even though they have no say in how and when these promotions are given.  Finally, since Luis is classified as an independent contractor, he is not entitled to breaks or overtime wages even though he regularly works 12 hour days.

But perhaps most disturbingly, workers are not provided with fall protection gear and safety training by the company.  In fact, Luis reports that when a worker on Luis’ team fell off a ladder and grabbed onto a gutter to hang on for dear life, the company’s response was to charge Luis for the damage done to the gutter.  And, while workers have received settlements in the past for their injuries, now that they are forced to buy their own workers’ compensation insurance, it’s unclear that the company would pay for the cost of these injuries.  More importantly, these injuries are preventable, but workers are not trained properly, nor can they necessarily afford the cost of the protective gear, given their meager wages.

Classical economic theory presumes that if these contracts were really such raw deals, workers would seek work elsewhere.  However, classical economic theory does not take into account the power differential between workers and employers.  Workers are told that they will not be given any more jobs if they do not sign these contracts, incorporate, and purchase their own workers compensation insurance.  They are also forbidden from taking independent clients.  In today’s economy, workers who are often recently-arrived immigrants, often lacking knowledge of English and US labor law, feel that they have no other choice but to continue in an abusive employment relationship, especially as more and more employers catch on to this new trend of passing market and health   safety risks on to the worker, while they collect all the profits.

Recently the company has fired Luis, ostensibly due to client complaints, though the company refused to give him the names of said clients.  Luis believes that the company is actually retaliating against him for pursuing his workers compensation claim.  To whom can Luis turn? As an “independent contractor”, he does not even have a right to unemployment insurance–yet another way that his employer has passed precarity on to those most vulnerable, the workers.

The Illinois Department of Labor has recognized the severity of the problem of misclassifcation, however, the Employee Classification Act only covers workers employed on construction sites.  Here at Arise Chicago, we are attempting to pursue other strategies; but without stronger laws regarding the misclassification of all types of workers, workers are left unprotected and even more vulnerable.

-Jamie Hayes is an Organizer at Arise Chicago Worker Center

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Worker members of the Cincinnati Interfaith Workers Center are fighting a temp agency that charges for mandatory transportation fee for cleaners of the Cincinnati Reds’ ballpark.  The result?  Workers who clean the stadium bathrooms and use power washers to clean the grandstands make less than the state’s minimum wage.  Read the full article at The Cincinnati Enquirer.

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By Jacob Lesniewski

Sometimes a potential campaign at Arise Chicago reaches legal obstacles, an evasive employer, or incomplete evidence.

Alfredo and Rev. Marich

And sometimes, it all comes together Hannibal Smith from the A-Team style.  Arise Chicago’s latest action to improve conditions of work in the carwash industry on Monday, February 28th was one of those moments when it all came together.  Car wash worker Alfredo led a delegation of allies, including IBEW Local 134 member and Arise volunteer Denise Sebo, Ted Sautter and two brothers from the United Steel Workers, two Arise Chicago Worker Center members and staff to Four Seasons Carwash at 5900 W. Addison in Chicago.  Alfredo joined the Worker Center because he was owed two weeks’ worth of wages and decided to take action.

After the “A – Team” leafleted and spoke to both workers and customers, the owner came, angrily demanding we move to the sidewalk, attempting to intimidate union allies taking pictures, and attempting to negotiate only with Adam, Worker Center Director.  And then he caved, but not before attempting one last hail mary, that was quickly deflected by legal advisory board member Amy Epton and Rev. Claire Marich of Downers Grove, who is rapidly becoming the Mother Jones of carwash workers in Chicago.  Rev. Marich states, “The work you do at Arise is so important and I am pleased to be a small part of it.  It uses my chaplain skills of reading people in crisis situation, so I am beginning to understand it as a really exciting extension of my ministry.”  Alfredo says, “Bosses can’t abuse their workers.”  He wishes for other workers to overcome fear to act and believes that his experience shows that.  ”Si se puede.”

Indeed.

It couldn’t have worked out better.  A worker taking action for justice.  Religious allies.  Worker members of Arise Chicago.  Allies from the legal community.  Union members.

This is what a movement looks like…

Alfredo joined by supporters at the car wash

- Jacob is an Organizer at Arise Chicago

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By Megan Cottrell, The Chicago Reporter.
Maria Ortiz couldn’t figure out how to feed her family when her paychecks stopped arriving on time from her employer. It turns out that the nonprofit had a history of paying workers late, even when the company had money.
(Photo by Joe Gallo, The Chicago Reporter)

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