Ge#ng to Fair: Strategies for Achieving Fair Labor AFHVS / ASFS 2018 – Madison WI – June 14, 2018 Brad Barham UW-Madison Agriculture and Applied Economics Sarah E. Lloyd Wisconsin Farmers Union Michelle Miller, Kelly Maynard and Michael Bell UW-Madison, Center for Integrated Agricultural Systems Alexia Kulwiec UWEX-School for Workers
Agriculture of the Middle (AOTM)
h:p://www.ago?hemiddle.org
• AOTM is comprised of many small and mid-size farms and ranches in the US • Produce ¼ of all farm sales and manage half of the agricultural land in the US • Most are family operated, and the farm provides household income • Many are in-between markeWng channels • Annually, many of these farms go out of business • AOTM farmers can succeed when they connect with “values-based food supply chains”
Understanding Domes;c Fair Trade for AOTM ParWcipatory research with community partners Return on labor and working condiWons are insufficient for both owners and hired labor Ag labor markets may be shaped by urban labor markets Midscale businesses are posiWoned to form coaliWons with hired labor Fair trade strategies explored ◦ ◦ ◦ ◦
CerWficaWon NegoWaWon CoaliWon building Public policy
Best pracWce examples
Community-based Project Team Michael Bell (Sociology) Brad Barham (Economics) Larry Burmeister (Ohio UniversityAnthropology) Michelle Miller, Kelly Maynard, Cris Carusi (UW CIAS)
Sarah Lloyd (Wisconsin Farmers Union, dairy farmer) Becky Glass, Ryan Saunders (Labor Network for Sustainability) Erika Inwald (DomesWc Fair Trade AssociaWon) Rick Adamski (dairy / beef farmer),
Alexia Kulwiec (Extension School for Workers) Rufus Haucke (vegetable farmer) Travis Doyle (Agroecology)
Steph Tai (UW Law School)
Laura Frye-Levine (Sociology)
Carolina Sarmiento (UW School of Human Ecology) Peter Hurst (consultant on internaWonal agricultural labor)
Strategies to improve fair trade The Big 4
• coaliWons • cerWficaWon • negoWaWons • Policy - Big P and liele p
What is Decent Work? Decent work is defined as opportuniWes for women and men to obtain decent and producWve work in condiWons of freedom, equity, security, and human dignity. This concept was created by the InternaWonal Labor OrganizaWon (ILO) and has been adapted by the Food and Agriculture OrganizaWon (FAO) for the rural context.
Four Pillars: Employment creaWon and enterprise development Social protecWon Standards and rights at work Governance and social dialogue
Brad Barham1, Ana Paula Melo1, & Thomas Hertz2
1. Agricultural and Applied Economics, UW-Madison 2. Economic Research Service USDA
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How distinct is their labor market from other low-skilled workers? 8
Introduction Questions Raised: Are US farm workers comparable to other low-skilled laborers in terms of earnings, wages, and poverty? Are returns to ‘human capital’ comparable? How much does citizenship or being ‘undocumented’
matter across these markets? What types of policies and market-based initiatives especially worth exploring based on our examination? Basic approach: Use American Community Survey data 2014 and 15 to explore
labor market outcomes for farm and restaurant workers. Statistical comparison and estimating returns to observables and unobservables
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What’s your intuition? Yes/No Farm worker earnings < restaurant worker earnings? Farm worker wages < restaurant workers (inc. tips)? Why or why not? Farm worker hours < restaurant worker hours? Why or why not?
Differences in human capital endowments (educ, age,
language) are more important than returns to human capital in explaining wage or earning differences?
Mexican-born farm workers are paid significantly less
than US-born farm workers?
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Statistical evidence – unconditional Earnings comparison Farm versus restaurant: Nationally, F > R by 26% Livestock versus crops: L > C by 19%, MW livestock earnings
Wage comparison Farm versus restaurant: Nationally, F 7.5% higher Crops versus livestock: no difference.
Hours comparison Farm versus restaurant: More hours for farm workers Crops versus livestock: More hours for livestock workers
Poverty outcomes: Slightly higher than US average but concentrated for ag workers in larger households (>5)
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Most of farm-worker earnings advantage stems from more hours worked.
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13
US Ave. Poverty Rate 13.5%, 2015; 14.8% 2014
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Returns to human capital – F & R workers Two ways to look at this: Regression coefficients on earnings and wage regressions that
incorporate education, age, gender, language capacity, citizenship
Oaxaca-Blinder decomposition method: Accounts for wage differences by comparing ‘endowments’ (e.g., education level) and returns to endowments (e.g., education return)
Evidence: Regression coefficients comparisons: Oaxaca-Blinder evidence:
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Regression coefficients Main points: 1. Very similar coefficients for demographics & educ. 2. Note significant neg. coefficient on female and positive one on marriage. 3. Note premium for wages for citizenship and both for those born in Mexico (longer work experience and more hours?)
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Regression coefficients
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Oaxaca-Blinder DecomposiWon Earnings
−0.21
−0.18
0.56
Mean Diff.:
Wages
−0.33
−0.31
−0.16 −0.12
0.40
Mean Diff.: −.5
0.61
0.230 (p−value =
0.90
Mean Diff.:
Hours
0.21
0
0.000)
0.10
0.080 (p−value =
0.28
0.000)
0.61
0.140 (p−value = .5
0.68
0.000) 1
∆ Education
if p−value < .10
∆ Demographics
if p−value < .10
∆ Citizenship
if p−value < .10
∆ Fixed−Effects
if p−value < .10
∆ Residual
if p−value < .10
1.5
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Evidence – Conditional on Citizenship Earnings: US citizens working in ag. get a 33% premium relative to US citizens
working in restaurant labor. We have not tried to explain that premium, next task.
Wages: 14% of that premium associated with wages of which we can explain
less than half, too. Same story.
Hours: More hours in farm work is part of the earnings story across the board.
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Earnings & Wages – Conditional on Citizenship
20
Poverty Rate - Conditional on Citizenship
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Poverty Rate - Conditional on Citizenship
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What’s going on in US Farm Labor Markets? Supply of farm labor, esp. rural Mexicans, declining rapidly (Charlton and Taylor; 2015)
and becoming more permanent workers (Fan et al,, 2015), driven mostly by Mexican population demographics that dates back to well before 2016.
Scarcity of farm workers since 2010 leading to rising wages in ag (> than inflation and
wages elsewhere)
These trends will not be readily reversed via changes in migration policies (labor
market fluidity and declining rural population growth throughout CA except Guatemala).
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Implications for market and policy initiatives related to farm workers Labor markets are working, in that farm workers are: Paid ‘competitively’, in terms of earnings and wages relative to other low skilled work (e.g., restaurant labor); Getting similar returns to their basic human capital endowments across sectors. Permanent settlement far more prevalent than migrant labor Mobility across sectors is well established. Efforts to improve their welfare might focus more on: Wage levels for low skill workers across the economy Complementary social policies to reduce rural inequality in access to health, education, and so forth (not just farm workers…) Training/support to improve job and wealth access on and off farm 24
Domes;c Fair Trade Case Studies Organic Valley and supply chain partners Milk with Dignity campaign in the Northeast Good Food Procurement policies $15/hour campaigns in California and New York Farm ApprenWceship Programs CSA vegetable farms in the Upper Midwest
Milk with Dignity Campaign of the farmworker-organized non-profit, Migrant JusWce, organized in 2009 Worker-centered social responsibility campaign Hinges on brand idenWty of Ben & Jerry’s Vermont dairy farms that supply milk for Ben & Jerry’s ice cream are members of the St. Alban’s CooperaWve Farmers and workers have important common ground – both affected by the price squeeze of the dairy supply chain Program Includes 5 EssenWal Elements: Farmworker-authored Code of Conduct; Farmworker EducaWon; Third Party Monitoring Body; Economic Relief; Legally-Binding Agreements
Migrant Jus;ce For first 5 years focused on worker-centered advocacy and issue-based direct acWon campaigns Work Stoppage in 2010 Workers Rights Hotline started in 2011 Preliminary Survey of Workers in 2011 CoaliWon-building with allied organizaWons resulted in early public policy change ◦ Driver’s privilege cards ◦ Bias free policing law Second survey in 2014
Milk with Dignity Real focus on aeempts to implement the iniWaWve starWng fall of 2014 Systemic approach modeled aper Fair Food Program and CoaliWon of Immokalee Workers “Workers’ problems do not start at the farm gate – and therefore they do not end there.” (Marita Canedo, 2017) Dialog and collaboraWon with CIW starWng in 2014 “Caring Dairy” corporate social responsibility program launched by Ben&Jerry’s in 2015, and Milk with Dignity campgain officially launched by Migrant JusWce on the same day June 19, 2015 Agreement to Cooperate 2.5 years of organizing and meeWng, October 3, 2017 Milk with Dignity campaign, Migrant JusWce and Ben&Jerry’s sign legally binding agreement Two staff from the campaign are starWng the Milk with Dignity Standards Council
2015 “Low Skill” jobs 42% of US workers made less than $15 In agriculture and food service, 60% In fast food, 96%
Basics on minimum wage Fed minimum first set in 1938 – floor under wages and ceiling on hours OverWme doesn’t apply to agriculture Minimum wage raised 22 Wmes – each Wme a fight Worker coaliWons lead policy change at local and state levels Employers not unified on issue
What can be expected? Farm lobby pressure against – Farm Bureau and their allied markeWng associaWons Court challenges Demand for tax incenWves to offset costs to agribusiness CompeWWve advantage claims – “coeon with slaves vs coeon without” CoaliWons stronger with employer partners
Weight of evidence Improve quality of life Reduce strain on poverty programs / safety net Liele if any impact on business PosiWve and negaWve effects offset each other – channels of adjustment
Now what? Twenty nine states have enacted higher minimum wage Phase-ins, indexing, family/sick leave, overWme, living wage Wait to see how it goes? Move forward with naWonal legislaWon? Raise the Wage Act – 4/17
“Low skill” workers Average naWonal wage about $10/hour Midwest $11 – NE $9.20 Livestock workers make 50% more (more hours, beeer pay, year round employment) Crop workers make less and have fewer hours Women farmworkers earn 54% less than men and paid 13% less – w/o children 30% less
States with farmers interested in hosGng an apprenGce
Who determines the skill ladder? Successful business operators create the curriculum Unions parWcipate in se#ng standard wages for journey workers ApprenWces make half the journey worker wage BUT in agriculture, there is no union, and most modest size farmers don’t know their salary, and sustain substandard working condiWons throughout their careers
Deep Dive into CSA Farms Methodology: QualitaWve Research In-depth interviews with three CSA farms in Wisconsin Two focus groups with CSA farmers in Wisconsin One focus group with CSA farmworkers in Wisconsin
A criWque of CSA has been that labor relaWonships – both the farmer self-exploitaWon and the farmer-hired labor relaWonships have not been fully considered. And the model is open idealized and romanWcized. Some examples of this literature: Allen 2008, 2010 Guthman 2008 Galt 2013 Sbicca 2015
CSA seen as strategy for farmers to be in direct relaWonship with consumers and avoid the troubles and vulnerabiliWes of the commodity markets. Our case shows that in CSAs that are working explicitly to deepen relaWonships and involvement and risk sharing with consumers (or members) the issue of self-exploitaWon is moderated or miWgated. Use of the Core Groups to negoWate in the supply chain has been beneficial for farm business stability.
Price of Proximity (Gray 2014) Quotes from CSA farmworkers in the case “You get to know the farmer that you are working with. SomeWmes they have a really small crew. You feel guilty because you are asking them for money. That is underlying the labor dynamic. There are not clear conversaWons. Is it an 8 hour day or 13 hour day?” I know of people that don’t report all their hours on their Wme card because they know how much the farmer is struggling to pay.” “Feelings get in the way in the small-scale.”
Precarity (Keller, Gray and Harrison 2016) Quotes from CSA farmworkers in the case “It seems like a lot of people that are just ge#ng in to it. They are younger. And they go traveling in the winter months. And that’s fun for a couple years. But if you are wanWng to keep doing it then it is hard. Piecing together winter work is hard. I worked for UPS this season. But it only lasted for a month. Finding liele bits of work to do.” “It’s a headache. It’s stressful.” “I worked as a tutor for 3 winters and I made more money doing that.” Did you make more money at UPS? Yes. 2x as much hourly. “You usually end in October and start in April. So you have to piece things together. The biggest issue is open finding housing and paying for rent if you are going to return to the same place.”
Does the CSA model provide unique ways of negoWaWng up and down the supply chain, for workers and farmers to eaters? Farmers express need for farms to be running well and reaching financial stability to be able to reduce self-exploitaWon and also develop worker relaWonships that they feel good about and are bending towards fair. The support of a Core Group or similar set of intense consumer/”member” relaWonships was seen as making fair possible. How much connecWon does the worker have with the eater in the CSA model? This varies by farm. And how much power does the worker have in farmer-worker labor relaWonship?
Organic Valley Limited Points of Leverage in Labor RelaWons Structure of Organic Valley Supply Chain = business strategy of limited ownership of processing capacity limits power to impact labor relaWons in the supply chain
Demographics of the Farmer Owners = many farmers from the Plain community (Amish, Mennonite) and many farms small-scale with reliance on family-labor, limited hired labor
Good Food, Good Work? Labor and the Good Food Purchasing Program
LABOR NETWORK FOR SUSTAINABILITY RYAN SAUNDERS
Case Study Background u
Focus on Valued Workforce u Provide
safe and healthy working conditions and fair compensation for all food chain workers and producers
u
Visibility of Labor Rights Issues u Separation u The
between consumer and producer
Program as a Vehicle for Greater Visibility
Key Strategies
u
u
Using the Program as leverage in Los Angeles u
Coalition efforts orchestrated by UFCW
u
Targeting poultry – the most exploitative supply chain
Building a Coalition of Stakeholders u
u
Pooling resources and funding to provide a ‘knowledge bank’ to assist institutions through the process of implementation
Leverage Low-Hanging Fruit u
Poultry procurement in Los Angeles
u
A ripe environment in the Minneapolis school system
Ongoing Challenges u
Transparency within the Food Chain u Difficulties
in obtaining information come from small farms, not just large corporations
u
Consistent public pressure is critical for sustained success
u
One size does not fit all u National
Framework cannot be uniformly applied from top down
Going Forward: Key Takeaways u
Active union participation ensures that the Program gains traction while giving the Labor community leverage in turn
u
Workers in companies with union representation have tangibly better wage and benefit structures, which gives credence to the requirement at the highest level of the Valued Workforce category for an institution to have a union contract with its employees
u
There is wide-spread institutional interest in implementing the program throughout the food supply chain. Institutions need access to consultative resources to develop implementation plans. Pooling resources within coalitions allows for the dissemination of best practices and
Worker Rights Cards in English and Spanish
What the Case Studies Illustrate • Shiping focus from individual consumer, market-based change to organizing food systems change through coaliWons. • We must look at the collecWve acWon. In criWques of the current poliWcal economic structure there is much throwing up of our hands saying – neoliberalism has won the day and there is nothing we can do. The case studies show that there are many spaces in economic acWvity to build social relaWonships that fall outside of the neoliberal grip. These spaces, open with nonprofit – non-corporate and non-state response show the power in the coordinated collecWve response. Trust is an important component of this collecWve acWon. • Decent work doesn’t just happen because you’ve changed producWon pracWces (OV case). Nor does it happen because a farmer and consumer have made a specific move to be in a direct and local market (CSA case). Decent work and fair labor condiWons don’t happen automaWcally. Organizing for labor negoWaWon capacity -- labor coordinator, enforcer, inspector, advocate, monitor are the kind of funcWons needed in each case
What the Case Studies Illustrate • Policy change- Big P / liele p - work on how we work together can occur at different scales, in the ways we do business as well as the ways we govern ourselves in public sphere; looking for systemic fixes, such as indexing wage rates, universal health care and social protecWon policies that set a floor for other compensaWon beyond wages to care for the needs of working people. (Wages only part of a compensaWon package.) • Low wage doesn't equal low skill, but can't get credit for skill without some sort of skill cerWficaWon. • CerWfying different aspects of fair -- condiWons - skills- product - insWtuWons (tension between worker and customer MWD ex.)
Ques;ons?? Our contact informaWon: Sarah Lloyd,
[email protected] Kelly Maynard,
[email protected] Michelle Miller,
[email protected] Alexia Kulwiec,
