Can NC be good for both businesses and workers? Another state shows us the way.
North Carolina: friendly to businesses, not so friendly to workers.
North Carolina can now boast the title of worst state to work in America, according to a new report from Oxfam America, a nonprofit relief organization that focuses on labor policy and human rights.
The index is based on state policies in three dimensions: wages, worker protections and right to organize. North Carolina ranks 52nd — lower than every other state, as well as Washington, D.C. and Puerto Rico.
In addition to paying the federal minimum wage and providing little to no support for workers’ right to organize, North Carolina has very few worker protection policies, the report says. The state’s minimum wage has remained at $7.25 since 2009, far below the average living wage for a family of four. Unemployment benefits in North Carolina are among the lowest in the nation. As a “right to work” state, the law discourages labor unions and prohibits collective bargaining for public sector employees. The state does not not provide pregnancy accommodations, paid leave or protection against sexual harassment. All of that has contributed to deep poverty and inequality across the state, which has only been exacerbated by the COVID-19 pandemic.
At the same time, however, North Carolina ranks among the best states for business, in large part due to the state’s extremely business-friendly corporate tax climate. State leaders frequently tout North Carolina as a pro-business state, pointing to the state’s favorable legal and regulatory environment as well as its corporate income tax rate, which is the lowest in the country. That’s been great for North Carolina’s economy, creating jobs and spurring growth in major cities.
But are we being business-friendly at the expense of workers? While businesses are booming, low-wage workers are left behind, working long hours and still scrambling to pay rent and put food on the table. We don’t have to choose, however — being pro-business and pro-worker isn’t mutually exclusive. As other states have shown, it’s possible to do both.
Take Virginia, for example. Virginia ranked at the bottom of Oxfam’s index in 2018 and 2019, but it jumped significantly upward this year due to new and improved legislation. Since taking control of the state legislature in 2019 for the first time in over two decades, Virginia Democrats have passed a slew of new employment laws, including a minimum wage increase, accommodations for pregnant workers and domestic worker protections. And that hasn’t changed its strong business climate. Virginia remains among the top states for business, taking the top spot in CNBC’s competitiveness rankings in both 2019 and 2021.
N.C. Department of Labor Commissioner Josh Dobson, who is Republican, told the News & Observer that North Carolina does well in physical safety in the workplace, pointing to statistics that place North Carolina fifth-lowest in the nation in terms of injuries and illnesses in the private sector workplace. That’s a good thing, but illnesses and injuries aren’t the only issues that need to be addressed.
North Carolina can — and should — do better by its workers. The state is currently facing a post-pandemic labor shortage — one that could end up being long-term if more people decide that low-paying, high-risk jobs just aren’t worth it anymore.
What does doing better by workers look like? Raising the minimum wage above a poverty wage — or, at the very least, allowing localities to do so. Mandating paid family and sick leave. More workplace protections, including sexual harassment protections.
Of course, most of these policies would fall under the domain of the state legislature or the N.C. Department of Labor, both of which are Republican-led. Still, Republicans aren’t the only ones who bear responsibility — leaders from both parties should make worker protections a bigger priority.
Helping workers is just as important as helping businesses. North Carolina can show both are possible.
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