Wednesday, August 31, 2011

Labor Day: Where's The Celebration

It's time to Break It Down!

Next Monday is Labor Day.  At its core, According to the U.S. Department of Labor, Labor Day in the United States was designed to commemorate the creation of the labor movement; dedicated to the social and economic achievements of American workers.  The holiday focuses on contributions workers have made to the strength, prosperity and well-being of our country.

First observed in September, 1882, the event has always been observed on the first Monday of the month.  Initiated by the Central Labor Union of New York, the celebration became a federal holiday in 1894.

In addition to its formal structure and purpose, Labor Day has a number of symbolic associations.  It is considered:
  • The unofficial “End of Summer
  • The last 3-Day warm weather weekend for vacationers
  • By High Society, the last day for which it is appropriate for women to wear white
  • The beginning of the College Football Season (the preceding Saturday)
  • The beginning of the NFL Season (the following Thursday)
  • The conventional kick-off of hard core political campaign season
  • Back-to-School shopping
On the formal side, while the Labor Department’s blurb omits any reference to it, Labor Day also validates and recognizes an often controversial mechanism that frequently divides American opinion; the labor union.  Scorned by many who fancy themselves as Free Enterprise Capitalists, unions and their members have not only been actively involved historically, in debates that framed public policy for American workers, they have won or forced hard-earned concessions that in the shimmering glow of reflective perspective, must be considered to have fundamentally altered the playing field (known as the workplace), including:

  • Pensions
  • Health Care Benefits
  • Paid Vacations
  • Equal Pay to women
  • The Development of Child Labor Laws
  • The 5-Day Work Week
  • The 40-Hour Work Week
  • The 8-Hour Work Day
  • Worker’s Compensation benefits
  • Female Flight Attendants permitted to marry
These and many other important cherished and effective employee rights are attributable to the efforts of the American Labor Movement.  But, this is not an ode to Labor Unions.  Unions also have downsides.  They create or contribute to:

  • The potential for strikes
  • Additional costs to all employees (membership dues; whether a member or not)
  • Loss of individuality (ability to represent one’s self in a grievance)
  • Subject to fines & discipline by the Union
  • Disincentives to productivity and competition
  • Lack of promotions
  • Burdensome salary demands (relative to the market)
  • Loss of profits (and/or pay) due to strike
  • Inefficient & ineffective contracts
  • Increased unemployment due to failure to reach agreement w/management
The first Labor Day celebration was led by a Labor Union.  The history of the Day has been linked, inextricably, with Labor organizations, ever since.  But if it is the American Worker the Day was intended to commemorate, Labor Day 2011 is set in an auspicious and trenchant backdrop.

  • The Unemployment Rate in the U.S. was reported to be 9.1% in July
  • The economy added only 117,000 jobs in July (154,000 in the private sector, -37,000 government jobs); better than expected, but still a dismally low number
  • Businesses are stockpiling $2 trillion in cash
President Obama, who announced after the Debt CeilingDeal on August 2nd, that he will present a jobs proposal for Congress to consider, is set to do so after Labor Day (September 8th).  The proposal is expected to include a combination of tax cuts, spending on infrastructure, and measures designed to assist the long-term unemployed, while bolstering certain sectors of the economy.  This potion sounds eerily similar to the ideas Democrats proposed when negotiating the Debt Deal. 

Republicans are lining up to oppose the plan, suggesting instead, among other things, a Balanced Budget Amendment; a balm the GOP/Tea Party also suggested during the Debt Deal negotiation.  In short, there is little expectation for significant movement, or the adoption of sweeping legislation to address the lack of jobs in America.  What we have instead is, déjà vu; all over, again!  Sadly, I am compelled to ask, “Labor Day: Where Is The Celebration?”

I’m done; holla back!

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