Christine Tartaglione's Labor Report

Since the federal government shutdown began on Dec. 22, leaving about 800,000 federal employees on furlough or working without pay, more than 3,100 of the affected workers had applied for unemployment compensation in Pennsylvania, and another 1,000 in New Jersey, as of Jan. 17, according to the Inquirer.

Prompted by the White House’s insistence on the inclusion of border wall funding in new government funding legislation, the shutdown has become the longest in American history. Among Pennsylvania’s UC filers, nearly 800 submitted claims on or after Jan. 10, one day before federal workers missed their first scheduled paycheck. Among about 62,000 federal workers in the commonwealth, 12,000 are furloughed or working without pay.

County-by-county, there were 554 new claims in Philadelphia, compared to 20 for the same week in 2018. Surrounding counties accounted for 75 (Bucks), 68 (Delaware), 59 (Montgomery), and 13 (Chester) claims.

In the Washington, D.C., area – including neighboring portions of Maryland and Virginia – at least 9,000 federal employees and contractors have applied for UC benefits, according to Politico. Yet, about 450,000 “essential” employees – those who are being forced to work without pay, are ineligible for UC benefits “because states may determine that they are still fully employed,” as per a letter issued by the U.S. Department of Labor during the government shutdown of 2013.

On Jan. 17, the Pennsylvania AFL-CIO released a statement condemning the government policy of forcing employees to work without pay. The date coincided with the 57th anniversary of President Kennedy’s executive order that granted federal employees the right to engage in collective bargaining through labor unions.

“57 years ago, the President of the United States respected the public servants of the federal government and demonstrated that respect through the acknowledgement and expansion of their rights as workers,” the statement said. “Today, more than 800,000 federal workers are being denied respect and their economic dignity.”

On Jan. 15, a federal judge rejected a bid by two federal employee unions, the National Air Traffic Controllers Association and the National Treasury Employees Union, to force the government to pay essential employees. The unions had sued seeking a court injunction.

In an effort to mitigate the financial burden on affected employees, Pennsylvania Sens. Tartaglione, Costa, Hughes, and Street wrote a letter to the largest 10 banks in Pennsylvania urging them to formulate a plan to assist the workers and their families. Further, Senate Democrats are planning to introduce legislation calling for the creation of a low-interest loan fund for affected employees and contractors.

On Friday, Jan. 18, the Pennsylvania Department of Labor and Industry, in partnership with the United Way, was to hold a resource fair in Pittsburgh for impacted workers. Another resource fair is planned for Philadelphia on Tuesday, Jan. 22.

New Congress Proposes $15 Federal Minimum Wage as NJ Enacts Statewide Plan

U.S. House Democrats introduced legislation on Jan. 16 that would more than double the federal minimum wage to $15 per hour over the next six years, a measure that has been described as the party’s first major labor policy proposal since retaking control of the legislative chamber earlier this month.

Education and Labor Committee Chairman Bobby Scott of Virginia is the primary sponsor of H.R. 582, which has 188 cosponsors including seven of Pennsylvania’s eight House Democrats. Independent Sen. Bernie Sanders of Vermont introduced a matching bill, S.B. 150, in the Republican-majority Senate.

Politico reported the House bill proposes annual cost of living adjustments after six years so the minimum wage keeps pace with inflation without the need for new legislation. It would also eliminate the sub-minimum wage for tipped employees, those with disabilities and teenagers.

“The legislation comes amid strong public support for raising the minimum wage,” Politico reported. “Polls show nearly three-quarters of voters support an increase, through there’s disagreement over the exact proportion. Young voters have indicated the minimum wage will be a driving issue for them in 2020.”

Twenty states raised their minimum wage at the start of 2019, raising pay for more than 5 million workers, according to Time. The minimum wage also increased in 24 U.S. cities and the District of Columbia. More states will raise their minimum wage later this year.

In New Jersey, after lengthy negotiations, the legislature and Gov. Phil Murphy agreed on a plan to raise the minimum wage from $8.85 to $10 on July 1, followed by annual increases of $1 each Jan. 1 from 2020 through 2024. Minimum wages for seasonal workers and small business will rise slower and reach $15 per hour by 2026. New Jersey becomes the fourth state to approve a plan to reach a $15 minimum wage, following California, New York, and Massachusetts.

Reading Commissioners Block State Money for Union Training Center in Partisan Vote

Two members of the three-member Berks County Board of Commissioners have blocked a labor union’s effort to secure $1 million in state funding for a new 11,700-square-foot training facility about 18 miles north of Reading.

The workforce development investment wouldn’t cost the county a dime, according to the Reading Eagle. Yet, Republican Commissioners Christian Leinbach and Mark Scott voted against a resolution that would allow Sheet Metal Workers Local 19 to accept the state grant. Commissioner Kevin Barnhardt, a Democrat, voted in favor of the resolution.

Scott reportedly said at the time of the vote that he thinks the union has enough money to operate without the grant. Leinbach said he “has a problem being asked to guarantee (the grant) without knowing much about how the (union) is operated and managed,” according to the Eagle.

A union representative testified that the training facility would prepare workers for a career with good wages and benefits. A Reading-based contractor said he depends on skilled sheet metal workers, so he was “perplexed” by the board’s majority decision.

Federal Judge Delays White House Effort to Lift Birth Control Coverage Requirement

A federal judge in Philadelphia has blocked the Trump administration’s effort to repeal the no-cost birth control coverage requirements of the Affordable Care Act.

New White House rules allowing employers to drop birth control coverage from their employee health insurance plans based on religious or moral objections were scheduled to take effect on Jan. 14, according to the Washington Post. But U.S. District Judge Wendy Beetlestone of the Eastern District of Pennsylvania issued a nationwide preliminary injunction that afternoon, less than 24 hours after another judge in California issues a more-limited stay covering 13 states and the District of Columbia.

“The rulings do not permanently block the Trump policy, but stop it from going into effect while legal challenges are pursued,” the Post wrote.

A lawsuit filed by the Commonwealth of Pennsylvania and State of New Jersey against the administration prompted the injunction. The ACA dictates that employees should be insured for preventative services without paying out-of-pocket fees, and that women’s healthcare services must be included. All federally approved forms of contraception have been covered since 2012.

Federal Government Planning Changes to Work Rules for People With Disabilities

The U.S. Department of Education is planning to radically alter how the federal government interprets a law enacted in 2014 to help people with disabilities transition from school to employment at competitive wages.

DisabilityScoop reported that the administration is expected to issue a proposal this month to change how it implements the Workforce Innovation and Opportunity Act, which requires people with disabilities ages 24 and younger to competitive, integrated employment before they can work in jobs paying less than minimum wage. And those already working in sub-minimum wage jobs must receive regular career counseling and information about training opportunities under the law.

A regulatory agenda issued by the administration last fall indicated that it would issue new proposed rulemaking this month.

When President Obama signed the Act into law in 2014, he said it would support Americans with disabilities seeking to live and work independently. The measure also mandates that state vocational rehabilitation agencies work with schools to provide transition services to all students with disabilities, and that the agencies allocate at least 15 percent of their federal funding toward transition efforts.

Dozens of advocacy groups for people with disabilities wrote a joint letter to the Department of Education last year opposing any changes to the law’s interpretation.

December 2018 PA Jobs Update

Pennsylvania’s seasonally adjusted unemployment rate remained unchanged from November to December 2018 at 4.2%. Over the month, unemployment rolls increased by 4,700 individuals, with total unemployment rising to 273,620. State unemployment statistics for the month are as follows:

As indicated above, total unemployment’s rounded percentage of the labor force, or unemployment rate, remained unchanged over the prior month (rate = unemployment / labor force). The labor force is the number of employed individuals combined with the number of unemployed individuals actively searching for work. Labor force growth can be a sign of a strengthening economy from more people working and/or more individuals searching for jobs. Marking a sixth consecutive monthly increase, PA’s labor force grew by 21,473 individuals from November to December 2018, a combination of total employment* rising by 16,756 and unemployment up by 4,717 as noted above. As a result of the consecutive monthly increases, PA’s labor force over Governor Wolf’s term has rebounded from negative growth of 43,448 (employment +26,941 & unemployment -70,389) earlier in 2018 to being up by 55,420 (employment +127,441 & unemployment -72,021) as of December 2018. This represents the highest point of growth thus far under Governor Wolf. State labor force statistics for the month are as follows:

Non-farm* job rolls rose by 13,200 from November to December 2018, pushing total non-farm employment to 6,068,400, a new record high for the state. Year-over-year in December 2018, the commonwealth added 74,800 new non-farm jobs. Since Gov. Wolf took office in January 2015, 252,500 new non-farm jobs have been added, over 100,000 more than were added over Gov. Corbett’s four-year term. The addition of 252,500 non-farm jobs ranks the commonwealth 34th out of 50 states for new percentage job growth, an improvement from it’s ranking of 48th in the same survey over Gov. Corbett’s term. State non-farm employment statistics for the month are as follows:

State Job Growth Rankings During Gov. Wolf’s Term

Ranked by Non-Farm Pct. Job Growth (Seasonally Adjusted)
(Source: U.S. Bureau of Labor Statistics)

Unemployment Claims Soar Among Workers Affected by Federal Shutdown