A new report showed income inequality in Wisconsin is declining as lower-wage workers are seeing faster wage growth but Black, Latino and women workers still lag behind.
A study by the High Road Strategy Center at the University of Wisconsin-Madison found the state's job market hit record levels in the second quarter and the inflation-adjusted median hourly wage has increased by 97 cents.
Laura Dresser, associate director of the High Road Strategy Center at the University of Wisconsin Madison and the report's co-author, said the increase in the median wage is just making up for the period inflation ran ahead of earnings in 2022.
"In these last five years, lower-wage workers have seen their wages go up by 8%," Dresser reported. "In terms of purchasing power, real value, and high-wage workers have only had wages go up about 1%."
The State of Working Wisconsin 2024 report noted the number of jobs in Wisconsin has topped 3 million and unemployment remained steady at 3%. The study also found the rate of unionized workers in Wisconsin dropped by one-third between 2011 and 2023, the steepest decline in union membership across the Midwest region.
Despite the increase in wages, the report said significant wage gaps remain between white men and workers who are Black, Latino or female. Dresser pointed out Latinos earn about 33% less, Black workers make 25% less, and white women's pay lags 16% behind in the workplace.
"When you focus on improving the quality of jobs, especially at the bottom of the labor market, you also are looking to close racial and gender gaps in wages," Dresser explained. "Because it is Black and brown and women workers who are dominant in lower-wage jobs."
The report made some recommendations for Wisconsin lawmakers. It suggested raising the minimum wage from $7.25 to $15 an hour to help close the pay gap, rolling back the state's so-called "right to work" laws to restore union rights and increasing investments in child care and education to provide relief for families and employers.
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The United Auto Workers union is negotiating its first union contract with Volkswagen at its Chattanooga plant, covering more than 4,000 members.
The union said its key demands include higher wages, affordable health benefits and retirement protections.
Steve Cochran, co chair of the bargaining committee, said the workers should have the same pay structure as the other automotive groups recognized in contracts with the United Auto Workers.
"Right now, at the end of the Big Three's contract, compared to what we have now is 24% higher," Cochran pointed out. "We're asking for right at about a 24% pay raise over the length of our contract, just to get us equal with the Big Three."
Cochran noted Volkswagen has offered a 16.5% raise over four years, leaving them several percentage points behind the current rates of the Big Three automakers. He added the cost-of-living raises are capped, unlike theirs. The Big Three -- Ford, General Motors and Chrysler -- were the first Southern autoworkers to unionize.
Cochran noted affordable health insurance is a key demand. His family plan costs around $400 a month, totaling $11,000 a year with deductibles and out-of-pocket expenses, an amount he said is unaffordable for many workers. He added some UAW autoworkers have secured fully paid family coverage with low co-pays.
"Some of us have to make a decision based on, 'Am I going to pay for this doctor visit and get this treatment, or am I going to pay my mortgage?'" Cochran observed. "We've had several members take 401(k) loans out, for example, or they may even remortgage your house. We've had several had to file bankruptcy."
Cochran emphasized the company recently eliminated its attendance bonus, which offered 8% of quarterly wages for perfect attendance. However, the strict policy meant even missing a single minute would forfeit the entire bonus.
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A bipartisan nonprofit group in Michigan is opposing pending legislation which would reverse a Michigan Supreme Court ruling, stripping paid sick leave and minimum wage protections, slated to take effect this month.
In 2018, Michigan voters approved initiatives to raise the minimum wage and provide paid sick leave but the GOP-led Legislature amended them in the same session, which the court ruled was unconstitutional.
Michigan's minimum wage is currently slated to rise to $12.48 on Feb. 21 and reach $14.97 by 2028.
Monique Stanton, president and CEO of the Michigan League for Public Policy, stressed how the proposed laws would affect Michiganders, especially low-income residents.
"If you get sick, your child breaks their leg, and you need to take a day or two off from work, you're not able to do so," Stanton pointed out. "That means you're making a choice between taking care of your child or being able to pay your utility bills, or being able to make your rent."
The new proposed legislation sets the minimum wage at $12 an hour this year, with tipped wages at 38% of the regular wage. If it becomes law, some Michigan workers' yearly pay will be reduced by $1,000 to $2,400 in the coming years.
Stanton noted polling data revealed keeping the paid sick leave and minimum wage increase has support from both Republicans and Democrats. She added her group is engaging with Michigan residents, businesses and other organizations to raise awareness and gain support.
"This is an issue that really will help people make ends meet, especially as we're worried about the economy and the costs of prices going up," Stanton stressed. "Both the boost to the minimum wage as well that protection for earned sick time are really essential."
The new bills have passed in the House and are now headed to the Senate. If they become law, the change will take effect on Feb 21.
Disclosure: The Michigan League for Public Policy/Kids Count contributes to our fund for reporting on Budget Policy and Priorities, Children's Issues, Livable Wages/Working Families, and Poverty Issues. If you would like to help support news in the public interest,
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Pennsylvania lawmakers return to Harrisburg on Monday, facing renewed pressure to address long-standing issues, including improving the economy and education.
Advocates said it is a crucial opportunity to make meaningful progress on many policies.
Gillian Kratzer, deputy director of the advocacy group Better Pennsylvania, said one key priority Democrats are focused on is improving school funding.
"Making sure that we are equipping schools to do the best that they can for every child in every school district," Kratzer emphasized. "Obviously last year, we had the court case that laid out, finally, that Pennsylvania does not have fair funding for schools, which is part of our state constitution."
Kratzer noted her group anticipates Gov. Josh Shapiro's third budget address on Feb. 4. In the last budget, Shapiro made the largest investment in Commonwealth history for K-12 public education, at just over $1 billion.
Medical marijuana is legal in Pennsylvania but not for recreational use. In the face of a budget shortfall, Kratzer acknowledged it will take bipartisan support, especially from the Republican-controlled state Senate, to secure new revenue sources, which could include legalizing recreational marijuana use.
"Something that we will hopefully see get done this year is doing something on recreational marijuana," Kratzer observed. "As a state, we have to find new sources of revenue, because we are either going to have to dip into our rainy day fund or raise taxes."
She added the state minimum wage remains stagnant at $7.25 an hour. A bill to raise it will be reintroduced. And she stressed the need for lawmakers to consider paid family leave, as the U.S. falls behind globally on the family-friendly policy.
Disclosure: Better PA contributes to our fund for reporting on Civic Engagement, Health Issues, and Livable Wages/Working Families. If you would like to help support news in the public interest,
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