Ending Hunger in America, 2014 Hunger Report Full Report | Page 89

CHAPTER 2 workers earn so little that they require public benefits, such as Medicaid, food stamps, and housing assistance, to support their families.”117 President Obama has the authority to improve workplace standards at firms that do business with the federal government. The administration has pushed hard to eliminate waste and abuse in federal contracts, and better treatment of workers could save money for the government. He can issue an executive order requiring federal agencies to take all possible steps to raise workplace standards, including paying better wages. Past presidents have used their authority to redress discrimination in the contractor workforce. In March 2009, Obama did in fact Figure 2.10 What Priority Should the Federal announce plans to reform federal contracting policies Government Give to Addressing in ways that reward high-road firms.118 But in March Problems of the Working Poor? of 2011, an official in the Office of Management and 100% Budget announced that these plans had to be put 119 Time is running out for the president to on hold. follow through on his pledge. 90 The government has a limited ability to influence the behavior of private sector companies, but the gov35% ernment is the customer in the public sector—or, to 80 put it differently, the taxpayer is the customer. Polls consistently show that the U.S. public wants the government to do more to help ensure that working fami70 lies can afford a decent standard of living. See Figure 2.10. So then, most Americans are likely to agree that 60 the federal government should be doing business with Important Priority high-road companies that pay their workers a living Top Priority wage, not with low-road companies that pay poverty 50 52% wages. Demos suggests a point system to reward conLower Priority tractors that pay their workers living wages. The govNo Priority ernment already uses a performance-based system to 40 evaluate contractors on the quality of their work, so a component on how they compensate their employees 30 would be a simple addition to the existing evaluation system.120 Bargaining Power In an economy with full employment, workers have some bargaining power when it comes to wages and benefits. High unemployment has the opposite effect— people who are out of work and desperately need jobs can’t afford to make many demands about the pay and benefits. The less bargaining power a worker has with her employer, the less pay she will accept to do the job. If an employer breaks the law—discriminates on the basis of race or gender, fails to pay overtime, 20 10 11% 0 2% Important/Top Priority Low/No Priority Source: American Values Network (2012), “Poll: Voters Prefer Candidates Who Talk About Working Poor.” www.bread.org/institute? ? 2014 Hunger Report? 79 n