CHARLESTON, W.Va. – A new study based on census figures shows the gap between the rich and poor continues to grow quickly. Analysts say it's becoming a serious issue for the economy as a whole.

Stuart Frazier, an analyst with the West Virginia Center on Budget and Policy, says the figures show the gap has grown even faster than average here. He says by one measure the distance between the state's rich and poor households has doubled in 30 years.

"Families in the top 5 percent, their income is about 10 times as large as the poorest 20 percent of West Virginians."

Economists stress that rising inequality is not inevitable, that the gap between rich and poor actually fell between World War Two and 1970. And they say it also fell for a brief period during the economic growth of the late 90s. They say part of that was due to Clinton era tax policies and a rise in the minimum wage.

According to Elizabeth McNichol, a senior fellow with the state fiscal project of the Center on Budget and Policy Priorities in Washington, the gap has grown nationally for three decades, but has become worse in the last 10 years.

"When the economy has grown, the lion's share of that has gone to households at the top. What we've seen in the last decade is that the incomes of the households at the bottom are actually declining."

McNichol says inequality is bad because it makes the economy less flexible. And she says people who work hard and play by the rules should be rewarded.

"There's a question of fairness. The economic growth comes from the contributions of people in all walks of life. When your place on the income scale determines whether you get rewards for that work, then that's a problem."

She says education, job training and tax policies at the state level can make a big difference.

"Assistance in childcare, job training, transportation, health insurance can help families get jobs and move up the income scale."






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The National Labor Relations Board recently issued a rule change that may have wide-ranging impacts for workers and businesses.

The update to the joint employer rule would require parent companies to negotiate collective bargaining agreements with employees even when using a staffing agency or subcontractor.

It also means franchisors and franchisees can both be held liable for unfair labor practices.

This replaces a Trump-era rule change that made it easier for companies to avoid a finding of joint-employer status.

Brian Petruska - general counsel with the mid-Atlantic regional organizing coalition of the Laborer's International Union of North America - said the rule change is a win for workers.

"It means that the employees' right to organize still is meaningful," said Petruska, "even in this modern world we live in with layers and layers of LLCs and corporations who are now defining the workspace."

The rule change now faces legal challenges including from the U.S. Chamber of Commerce, which filed suit against the board in federal court.

In a statement on its website, the Chamber says the rule change will "create chaos and more legal confusion that will harm both employers and workers."

The NLRB rule establishes that two or more entities may be considered joint employers of a group of employees when more than one entity possesses the authority to control employees' essential terms and conditions of employment.

The board says this change is more in line with established common-law agency principles.

Petruska said he sees opposition to the updated rule coming from a number of industries including restaurants, construction and hotels.

He also said the franchise business model will no longer insulate the parent company from labor issues.

"Now," said Petruska, "the fact that they have that control may cause them to be embroiled in local labor disputes that the franchisees are having with their employees."

The new rule will go into effect next February.

States such as Minnesota have seen a tidal wave of union organizing amid public support to improve pay and workplace conditions.

However, labor leaders acknowledge the slow growth of membership, prompting questions about the movement's future.

The Bureau of Labor Statistics says nationwide, the number of union jobs last year increased by nearly 2%, but the actual membership rate declined to 10.1%.

In a recent University of Minnesota panel discussion, Bernie Burnham -- president of the Minnesota AFL-CIO -- said the dynamics of organizing have changed, including smaller groups of employees pursuing contracts.

"Like in retail, there are a lot of places that use self-checkout," said Burnham. "So there are less workers in these stores and they're not going the traditional route, the old-school route of joining these bigger bodies that are the bigger unions."

Despite the differences, she suggests there's a lot of energy among the newer voices.

The experts added that corporations are taking a harder line on organizing and that under most laws, it's hard to enforce "anti-union" messaging.

Minnesota recently bolstered its laws, but some panelists noted most workers today don't come from a union household and could use more education and awareness.

Kathy Megarry, vice president for human resources and labor relations with the Metropolitan Airports Commission, suggested there are workers who want to see more value in the dues that are required.

"I have seen unions make actual political changes in terms of how they service their members," said Megarry, "put more money towards organizing, less money to servicing their members. That's a strategy. But then when you do not service your members well, I've seen that hurt some unions, not all."

She said that can be a hindrance for workers who sympathize with the cause but aren't ready to sign up for a union.

Meanwhile, the panelists said they see hope for more diversity within organized labor amid a shift from older white males leading organizing efforts.

They said having more women and people of color taking charge can potentially help with recruitment.

Pennsylvania needs more economic opportunities and a new report from the Keystone Research Center showed federal investments in climate and infrastructure projects would help grow a skilled construction workforce.

Diana Polson, senior policy analyst at the center, said the report revealed federal money would create thousands of trade jobs through expanding union construction apprenticeships leading to quality careers, as electricians, operating engineers, carpenters, and laborers.

"In Pennsylvania, for example, these apprenticeships train workers for jobs that pay more than most college-educated workers earn, and 61% more than the average worker in Pennsylvania," Polson pointed out. "Significantly, this training comes without any student debt."

Polson added Gov. Josh Shapiro wants to use 3% of the federal funds from recently signed climate and infrastructure laws to expand workforce development and apprenticeships. Shapiro's 2023-24 budget includes $6 million for the effort.

Polson noted President Joe Biden's Good Jobs Initiative seeks to embed job quality and equity incentives into the federal funding, to make sure apprenticeship and pre-apprenticeships benefit underserved communities. She called it a huge win all around, for the state, climate, for those communities, and taxpayers.

"We had shared this in the report, research has shown that for every dollar invested in apprenticeship $35 is returned to the government in higher tax collections, or reduced expenditures on public assistance or unemployment over the career of an apprentice," Polson emphasized. "These are huge returns on investments."

Keystone Research Center said the resources will lead to high-wage union construction careers. The center is holding a webinar today at 1 p.m. on construction apprenticeship programs in coal country, in Pennsylvania, Ohio, West Virginia, and Kentucky.