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The
Grinch that Stole Labor Day
by
Greg Palast
August
30, 2003
In
celebration of the working person's holiday, Secretary of Labor Elaine Chao has
announced the Bush Administration's plan to end the 60-year-old law which
requires employers to pay time-and-a-half for overtime.
I'm
sure you already knew that -- if you happened to have run across page 15,576 of
the Federal Register.
According
to the Register, where the Bush Administration likes to place its little gifts
to major campaign donors, 2.7 million workers will lose their overtime pay --
for a "benefit" of $1.53 billion. I put "benefit" in quotes
because, in the official cost-benefit analysis issued by Bush's Labor Department,
the amount employers will now be able to slice out of workers' pockets is
tallied on the plus side of the rules change.
Nevertheless,
workers getting their pay snipped shouldn't complain, because they will all be
receiving promotions. These employees will be re-classified as managers exempt
from the law. The change is promoted by the National Council of Chain
Restaurants. You've met these 'managers' - they're the ones in the beanies and
aprons whose management decisions are, "Hold the lettuce on that."
My
favorite of Chao's little amendments would re-classify as "exempt professionals"
anyone who learned their skill in the military. In other words, thousands of
veterans will now lose overtime pay. I just can't understand why Bush didn't
announce that one when he landed on the aircraft carrier.
Now
I should say that, according to Chao's press office, the changes will actually
extend overtime benefits to 1.3 million burger flippin' managers. How does that
square with the billion dollar "benefit" to business owners? Simple:
The Chao hounds at the Labor Department suggest that employers CUT WAGES so
that, with the new "overtime" pay, the employees won't actually take
home a dime more.
I
can hear the moaners and bleeding hearts saying, this sounds like the Labor
Department is telling Big Business how to evade the law. Yep, that's what the
Department is doing. Right there on page 15,576 of the Federal Register it
says,
"Affected
employers would have four choices concerning potential payroll costs:
(4)
converting salaried employees' basis of pay to an hourly rate that result in
virtually no changes to the total compensation paid those workers."
And
in case some employer is dense as a president and doesn't get the hint, Madame
Chao repeats, "
The fourth choice above results in virtually no (or only a
minimal) increase in labor costs."
For
decades, the courts have thrown the book at cheapskate bosses who chisel workers
out of legal overtime by cutting base pay this way
but now they'll have a new
defense: Bush made me do it.
But
then, there won't be any cases against employers, because Chao is the labor cop
that is supposed to stop paycheck theft. She's well qualified for the job. Her
resume reads, "Married to Republican Senator Mitch McConnell of Kentucky."
I called her press office to ask if she qualifies for overtime, but they'd left
the office early.
And
good news for our sporting President. Word from the White House is he'll be
golfing on the Labor Day weekend. Under Chao's rules, he need not worry if he
wants to replay that hole. "Exempt professionals" who cannot earn overtime
- once defined as doctors, lawyers and those with specialized college degrees -
will now include anyone who provides skilled advice
like caddies ("You
might try the other end of the club, Mr. President").
Finally,
on this Labor Day weekend, it's time this nation took a cold look at the issue
of hard-core unemployment. Neo-conservatives have warned us about families that
pass on joblessness from generation to generation.
Take,
for example, the sad case of the Bush family. When Poppy Bush was president,
unemployment hit a generational high of over 9 million Americans. Bill Clinton,
through education and hard work, put more than 3 million of those citizens back
on the job.
Now
Bush Junior, repeating his family pattern of joblessness, has presided over the
return of unemployment for 9 million Americans.
This
was not unexpected, sociologists warn us. Hard core unemployment, through
failed schooling and a don't-care attitude, takes on a nearly genetic
character. The acorn falls only so far from the tree. Especially when the nut
falls on its head.
Greg Palast is author of
the NY Times bestseller The Best Democracy Money Can Buy (Penguin USA
2003) and the worstseller, Democracy and Regulation, a guide to
electricity deregulation published by the United Nations (2003, written with T.
MacGregor and J. Oppenheim). See Greg Palast's award-winning reports for BBC
Television and the Guardian papers of Britain at www.GregPalast.com. Contact Palast at his New York office: media@gregpalast.com.