In Favor:
In his recent State of the Union, President Obama poignantly stated that “there are millions of Americans whose hard work and dedication have not yet been rewarded … for more than a decade, wages and incomes have barely budged … We know our economy is stronger when we reward an honest day’s work with honest wages.”
The outstanding report by Emory’s Committee on Class and Labor produced in January of this year reminds us that many of the underemployed are a part of our Emory community working as contracted labor. The contracted labor force working for Sodexo, Inc. has generated the most controversy.
In 2005 Emory University outsourced its food service to Sodexo, Inc. in an effort to reduce its food related costs. While many have argued that this was economically advantageous for Emory, it has exacerbated economic disparities within our community. Many of Emory’s Sodexo workers receive wages well below the poverty line, do not enjoy Emory benefits and are only employed seasonally. We should not underestimate the hardship that created by low wages and seasonal employment.
Shawn Fremstad, a senior research associate for the Center for Economic and Policy Research, agues that the federal poverty line is an inadequate measure for determining whether one’s basic needs are met because “it hasn’t been updated for changes in mainstream living standards since the Beatles’ first American tour.” The federal poverty line can best be seen as an identifier of those living on subsistence wages and forced to choose between basic needs on a daily basis. It is imperative that Emory University intervenes to ensure that every member of its community receives fair and sustainable wages.
The situation for Emory contract labor is made worse by the refusal of Georgia Labor Commissioner Mark Butler to provide jobless benefits to seasonally unemployed workers. His defense of a “state’s right” to deny seasonal workers financial security and lock-in income inequality is now receiving some support in the Georgia Senate. SB 227 would codify into state law the unemployment benefit cuts imposed by Commissioner Butler.
The recent choices made by Emory, Labor Commissioner Butler and the Georgia Senate will not only create a tremendous amount of hardship for individual families but they are terrible the entire nation. They preserve a level of income inequality that Joseph Stiglitz, a Nobel Prize winning economist, has identified as the primary reason we are not experiencing a robust economic recovery. Stiglitz believes that the time when the majority of our society could expect to trade hard work for a good life is quickly fading way because income inequality deny us the foundation support and political to expand opportunities for those most in need.
The University’s general position is that Emory is not responsible for the death of the “American Dream” among its contracted workers because it does not directly hire service workers employed by Sodexo. Even if it were correct, this would not be the stance one would expect from an “ethically engaged institution.” In 2005 the Board of Trustees approved a set of ethical principles that states that the university will be a force for upholding “the dignity and rights of all persons through fair treatment, honest dealing, and respect.” They forward that Emory is “committed to creating an environment of work … that enables all persons to strive toward their highest potential.” Unfortunately, Emory’s response to the plight of it’s contract service worker indicates that it has yet to fulfill its promise to “honestly, unflinchingly, and whole-heartedly” internalize these principles. This is an issue where Emory can and should actualize the Board of Trustees ethical commitments.
To rectify the situation, Emory should create a hardship fund for Sodexo workers to cover the benefits they are denied due to the Georgia’s cuts unemployment insurance. This would prevent many members of our community from experiencing additional financial duress during their upcoming summer unemployment.
This would not be without precedent, as Emory has already established a hardship fund for employees hired directly by the school. To not provide the same support to those who members of our community and just happen to receive checks from Sodexo, Inc. disregards and disrespects their essential contributions in making Emory a “destination university.”
For the opposing view point, click here
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To rectify the situation, Emory should create a hardship fund for Sodexo workers to cover the benefits…The authors of this view should take a quick crash course in labor law and see if this is a ‘good idea’.