CIRS Blog about Rural California
California enacted a law in 2016 (SB 3) raising the minimum wage from $10 to $15 an hour by 2022 and requiring farmers to pay 8/40 overtime (AB 1066), that is, 1.5 times normal wages after eight hours a day and 40 hours a week by 2022 (employers with 25 or fewer employees have extra time to comply). The state's minimum wage went to $10.50 an hour on January 1, 2017.
Western Growers surveyed its members in November 2016, and 150 growers reported that they plan to increase mechanization (77 percent) and reduce production of labor-intensive crops in California (33 percent), including 60 growers who hired fewer than 100 workers at peak.
Responding growers reported that their employees worked an average 9.6 hours a day and 56 hours a week at $12.40 an hour, suggesting 5.5 day workweeks. Instead of paying overtime wages, most farms said they will reduce hours to 8/40, so that workers would be employed 16 fewer hours a week. A third of respondents said they would reduce benefits provided to farmworkers because of higher minimum wages and 8/40 overtime by having employees contribute more for heath insurance or reduce employer 401K and retirement contributions.
By Gail Wadsworth and Elizabeth Henderson
The goal of fair labor standards is to achieve decent and humane working conditions for all employees. The Fair Labor Standards Act (FLSA) is a federal law which establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. Agriculture in the U.S. is exempt from several of the FSLA requirements, such as overtime pay and child labor laws.
Many consumers are not aware of these legal exemptions but are aware of poor working conditions for workers on farms. Several organizations are working within the U.S. to improve standards on farms for laborers.
The Fair World Project recently examined some of the key challenges facing farmworkers and analyzed seven of the eco-social certifications that appear on our food. They found two programs with strong standards and good enforcement to help ensure workers are well treated: the Fair Food Program and the Agricultural Justice Project.
Only one of these recommended certifiers actively operates in California, the Agricultural Justice Project (AJP). We recently contacted AJP to get some questions answered for consumers in California who are interested in eco-social justice certification.
Consumers in the United States are especially fortunate to have access to fresh food at all times of the year. In our supermarket produce aisles it’s hard to tell what season it is when fresh fruits and vegetables are available all the time. We can be thankful for this abundance and especially in California where we have a year-round growing season. But hidden in the abundance of produce on the shelves is a darker story of food chain workers who struggle to eat the foods they grow and package.
Food Equity along the Chain
Equity is an essential characteristic of a healthy food system. Access to healthy, fresh, sustainably grown food is a basic human right. Ironically, this right is often denied to workers who are directly engaged (frontline workers) along the food chain.
The Food Chain Workers Alliance recently updated their report “The Hands that Feed Us” from 2012 with the new report, “No Piece of the Pie.” The report is full of sobering data. The food industry, employing 21.5 million people is the single largest employment sector in the US. And, despite steady growth of the sector, wages for workers have only risen twenty cents an hour in the last four years. As a result, food workers are increasingly turning to food assistance programs, like SNAP (Supplemental Nutrition Access Program also known as Food Stamps) to help feed themselves and their families. Median wages for front line food workers are $16,000 while industry CEOs have a salary of $120,000.
- Despite employment growth, the food chain pays the lowest hourly median wage to frontline workers compared to workers in all other industries.
- The annual median wage for food chain workers is $16,000 and the hourly median wage is $10, well below the median wages across all industries of $36,468 and $17.53.
- Food chain workers rely on public assistance and are more food insecure than other workers. Thirteen percent of all food workers, nearly 2.8 million workers, relied on SNAP to feed their household in 2016.
- This was 2.2 times the rate of all other industries, a much higher rate than in 2010 when food workers had to use food stamps at 1.8 times the rate of all other industries.
- Food insecurity in households supported by a food chain worker rose to 4.6 million during the Great Recession ("No Piece of the Pie," Executive Summary, Pages 1-2)
There is not enough farmworker housing. A combination of economic incentives, stricter regulation of housing quality, and worker preferences suggests there will continue be a shortage of affordable and decent housing for seasonal farmworkers.
Until the 1960s, many farmers housed seasonal workers on their farms in a bid to attract them and to have workers available when they were needed. On-farm housing was often offered at little or no cost, and workers did not incur costs to commute to work.
Unionization and tenant rights, as well as tougher regulations and enforcement, encouraged many farmers to eliminate on-farm housing, which they could do in the 1970s, 1980s and 1990s and continue to attract workers because unauthorized migrants flooded into the United States. Today, most farmworkers live in farmworker cities, often crowded into single family homes, and many commute in car- and van-pools to work.
Federal and state governments operate farmworker housing centers, most of which give preference to families and offer a range of health, education and other services to workers and their children. Solo males generally live off of the farm and away from subsidized centers, especially when they work in short-season crops, such as the three-month table grape harvest in the Coachella Valley.
California needs more housing, but zoning laws that require developers to "maintain neighborhood character" and limit how many unrelated people can live together raise housing prices and slow the migration of poorer people to boom areas such as San Francisco. Many of the tech workers in San Francisco earn $150,000 to $200,000 a year, and the city's median house price in summer 2016 was $1.1 million.
By some estimates, United States GDP could be increased by 10 percent if zoning restrictions were eased so that poor people could move to richer areas and enjoy higher wages without spending their extra earnings on housing. A state law supported by Governor Jerry Brown would make it harder for cities to saddle developers with open-ended design, permit and environmental reviews. Many people in desirable places want to pull up the drawbridge, arguing that allowing more people into their cities would degrade the quality of life.