SEATTLE – A new analysis finds pay to CEOs is ballooning while average wages for workers remain stagnant.
The Economic Policy Institute looked at compensation for CEOs at the 350 largest firms in the U.S. and found they have risen more than 1,000% over the past four decades.
Meanwhile, pay to the median worker has gone up just 12% over that time period.
John Burbank, executive director of the Economic Opportunity Institute, says the growing income gap is a symptom of a larger issue in the country.
"The value of stock as shareholders is held above the value of workers, who are the people who are actually doing the work to create the profits for the companies, and it is a continual undermining of the quality of life of middle class workers and their families," he points out.
Burbank adds that this is not just happening in the private sector. Even nonprofit hospitals have emulated this trend.
According to an analysis by his organization, in 2018, the head of the Kaiser Foundation Health Plan made 193 times as much as the typical nurse.
In 2018, the ratio of CEO-to-worker compensation was 278-to-1. Thirty years ago, that ratio was 58-to-1.
Burbank says there are ways for the Washington state Legislature to address this issue.
One proposal this session would put a surtax on companies where CEOs make more than 50 times that of the median worker. Another bill would put an excise tax of 5% on employers who pay employees more than $1 million and a 10% tax for employees who make more than $10 million.
Burbank says that would bring in millions of dollars.
"Our legislators could make a choice as to whether they will continue to allow this obscene escalation of compensation to the very top or whether they want to put a little brake on that and use the revenues from that brake to fund basic services for the people of our state," he states.
Burbank says if the excise tax had been implemented this year, it would have brought in more than $300 million in tax revenue, which could help fund programs as such expanded health care coverage or early childhood education.
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Nurses in Minnesota and other parts of the country are calling attention to an issue felt by many parts of society - the growing influence of artificial intelligence. Last week, thousands of nurses around the U.S. held rallies, demanding the hospital industry ensure safeguards as AI technology finds its way into care settings.
Chris Rubesch, Minnesota Nurses Association President and cardiac nurse from Duluth, said he and his colleagues aren't opposed to AI innovation, but added the rapid pace of adoption requires deep analysis. He said administrators should know they simply can't replace decision-making by humans in critical moments.
"And it's quite common for the computer program that's already built in to accidentally misinterpret a heart rhythm, right? It happens. Machines aren't perfect," he explained.
Researchers have made progress in seeing AI help diagnose certain patients, such as those being treated for skin cancer. However, the Medical Group Management Association says it should still be a complementary tool, noting ethical considerations regarding patient data privacy.
Hospital systems are increasingly dealing with budget pressures, but Rubesch said finding efficiencies shouldn't come at the expense of patient care.
"Health care can't be boiled down to dollars and cents," he continued." These are human lives, not revenue-generating units."
Rubesch added that bargaining units for roughly 15,000 Minnesota nurses will be negotiating new contracts this spring, and he anticipates artificial intelligence will come up in those discussions.
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As President Donald Trump abandons a promise the U.S. made in Paris nearly a decade ago, organized workers across Colorado are joining forces to address a climate emergency which, according to global scientific consensus, threatens the very biosphere needed to sustain life as we know it.
Nate Bernstein, executive director of Climate Jobs Colorado, said today's economy is not working for all Coloradans. He believes ramping up clean energy production can help reduce income and racial inequality.
"As of 2018, we had the highest gap in equality and wealth in over 100 years," Bernstein pointed out. "One way that we can help bridge that gap is by creating good solid union jobs across the state of Colorado."
Trump has issued executive orders to achieve energy dominance by increasing production of oil, gas and coal. When burned, the fossil fuels release greenhouse gasses into the atmosphere. More than two centuries of industrial pollution has led to rising global temperatures and an increase in catastrophic events including massive wildfires, flooding, prolonged drought and polar vortexes.
Bernstein noted a worker-centered roadmap created in partnership with Cornell University would expand opportunities for high-paying careers to all Coloradans, including workers in rural parts of the state where coal-fired power plants are set to retire as cheaper energy sources come online.
"We know that workers that work in those facilities have the skill set and/or can be trained to operate stable energy like geothermal and other sources," Bernstein explained.
The coalition includes the Amalgamated Transit Union, Colorado AFL-CIO, Colorado Building and Construction Trades Council and International Brotherhood of Electrical Workers. Bernstein added they are working on a bill to end a 1943 law requiring a second, supermajority election to form a union.
"We're continuing to build the coalition to make sure that the laws enacted at the Capitol continue to be favorable for working people as well as the environment," Bernstein emphasized. "All while assuring that we close the gap on racial and economic inequity within our state."
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The Service Employees International Union is joining the AFL-CIO, a move both groups said will make it easier for more workers to unionize.
SEIU is the nation's largest union of health care workers, janitors and security officers, among others. Combined with the AFL-CIO, a federation of more than 60 national and international labor unions, the group now has 15 million members.
Alan Dubinsky, communications director for SEIU Local 49, representing Oregon and Southwest Washington, said the two unions have a history of working together and they share many of the same values.
"We want to unite people across class lines no matter where they live, no matter the color of their skin, who they love, so we can stand up to billionaire interest and corporate greed," Dubinsky explained.
Research shows although only one in 10 workers is currently part of a union, more than 60 million people said they would join a union if they could. In a statement, the AFL-CIO said it will fight for new rules to strengthen the rights of workers to organize and collectively bargain.
Recent polls showed unions have near record-high favorability, with 67% of Americans approving of them. Last year had some major wins for labor, including The United Auto Workers, unions representing airline workers, and several Hollywood entertainment unions. Dubinsky noted rights for workers cannot be won alone.
"As working people, we all want the same things," Dubinsky contended. "We want jobs that are going to pay us enough to live. We want accessible, affordable, quality health care for ourselves, for our loved ones. "
When workers organize, research shows wages increase and working conditions improve. In 2024, petitions to form or join a union more than doubled from the previous year.
Disclosure: SEIU Local 49 contributes to our fund for reporting on Livable Wages/Working Families, and Social Justice. If you would like to help support news in the public interest,
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