Blog

Blog

How Alabama can build an economy that works for workers


Multi-colored logo of the state of Alabama with the text The State of Working Alabama

 

Labor Day is a holiday where we can reflect on the contributions that working people – and the unions that workers form to build power together – have made to the well-being of all people in the United States. These contributions include overtime pay, a five-day workweek, child labor protections and workplace safety standards.

These advances for working people didn’t come easily. Workers won them through strikes, pressure and solidarity. These advances came in the face of overwhelming opposition by bad employers that would have rather seen their workers die than to win workplace democracy.

And the fight continues. Many steps that the working people of Alabama have won toward better lives for their families are under attack today. In Alabama, workers fought this year against anti-union legislation and a measure to reduce existing child labor protections. And while passing these harmful bills and others, state officials have continued to give billions of dollars in tax incentives and subsidies to private companies. These giveaways persist even when those companies benefit from egregious child labor law violations.

These attacks on workers are continuations of longstanding economic strategies of worker abuse in the South. But at the same time officials choose to make life tougher for working people, officials are asking why people aren’t in the workforce.

The answer is straightforward: The Alabama economy doesn’t work for workers. And that’s by design. But we can move toward a better economy with better policy choices.

Job quality in Alabama is low

Alabamians labor in a state where numerous employment practices and policies prevent them from building a stable life and improving their overall well-being. More than 1 in 5 Alabama workers (22%) are paid less than $15 per hour. That is a poverty wage for a family of four and less than half of what that family needs to thrive. Alabama’s workers also make less, even after adjusting for the state’s lower cost of living, than workers in Rust Belt states like Illinois, Michigan, Ohio and Pennsylvania.

Two people working under the hood of a car with text on the top that reads How Alabama can build an economy 
that works for workers.The shortcomings of Alabama’s low-road economic development model reach far beyond employers’ failure to pay adequate wages. Southern workers broadly have less access to paid leave than other workers. Alabamians have no paid parental leave protections under state law, though momentum is building to fix that problem for some workers. Alabama workers also lack guaranteed paid sick leave, caregiving leave, domestic violence leave or bereavement leave. And the state has prevented local governments from giving workers a square deal by preempting any local legislation to improve conditions for workers, in an extension of policy barriers that limit Black Alabamians’ self-determination and participation in society.

State policymakers prop up employers’ anti-worker strategies by opposing workers’ efforts to build a better economy for themselves. The recent upswell of unionization in Alabama has met with vicious opposition from some officials, including a picketing ban, use of state troopers to support scabs against miners, and a slick, businesslike campaign of officials orchestrated to oppose workers organizing with the United Auto Workers (UAW) in Tuscaloosa County.

Officials also have attacked employers who freely and voluntarily recognize workers’ decision to unionize by forbidding those companies to receive economic development incentives. Hostility to workers, coupled with persistent underinvestment in work supports, has left Alabama’s workers significantly behind across the board.

Remove barriers by investing in child care, health care, public transportation

We know workers face specific barriers to workforce participation. The workers themselves and the businesses employing them have said so. These barriers include child care, transportation, housing and medical coverage.

But as our state’s economy has grown less than it would with broader opportunity, officials have made shortsighted anti-worker policy decisions that make life worse for working people and those who depend on them. Even the steps forward have been tentative, lacking in focus directly on the people who do the work to keep Alabama going.

Instead of just providing tax incentives to companies for child care and stopping there, workforce development should include direct investment in child care for workers. Our state’s hardheaded, hard-hearted refusal to expand Medicaid has cost lives and worsens our rural hospital crisis. Alabama remains one of just 10 states yet to close the health coverage gap.

Alabama also has yet to fund the Public Transportation Trust Fund that the Legislature created in 2018. Significant investment in public transportation would help all workers – particularly people working in manufacturing and caregiving, two areas of need where investment would provide rippling benefits for all Alabamians.

These persistent state policy failures bolster an overall economic structure that comes up short on providing jobs where people can thrive or even just get by. By not investing in essential work supports, lawmakers are limiting our state’s human potential and economic future.

Job quality for Alabamians is lower than in many other states. Many Alabamians make less than other states’ residents do for the same work, and that’s the wrong way to build an economy. 

A high road to a brighter future

Alabama’s economic development strategy of removing every guardrail for worker well-being while treating the people who do the work like they are disposable doesn’t make sense. It never has. The top-down model is why our state’s outcomes fall measurably short in important areas such as earnings, health care and educational attainment.

On this Labor Day, state decision-makers should move beyond the low-road strategies that have Alabama spinning its wheels on improving quality of life for the people who keep the state running. By investing in a high-road economic structure that uplifts workers, we can build an Alabama we’re all proud to call home.