Happy Labor Day

"While CEOs in Oregon are still cashing huge paychecks, the fallout from the Great Recession has ratcheted up the pressure on Oregon workers," said Oregon Center for Public Policy Director Chuck Sheketoff. "The fortunes racked up by some CEOs every year illustrate just how unbalanced our society has become. Income inequality is one of the most serious economic problems that Oregon and the nation face."

In real terms, the typical (median) Oregon worker was earning less last year than in 1979. The average hourly wage for median wage workers was $15.85 in 2009, down from $16.09 in 2001 and lower than the 1979 level of $16.12, when adjusted for inflation.

The typical Oregon worker has also lost ground in terms of income, a broader measure than wages. Particularly for high-income households, total income also includes capital gains - gains from investments in stocks and real estate, for example - and dividends. Oregon's median household income in 2008 - the most recent year for household income data - was 1.5 percent lower than it was in 1980, after adjusting for inflation.
By contrast, average inflation-adjusted income among the wealthiest 1 percent of Oregon households was up 138 percent over the same period. Average compensation among the 40 highest-paid CEOs of Oregon-based public companies in 2009 was $1.9 million - nearly 40 times the average annual earnings of Oregon workers generally.

Nevertheless, unionised workforce offers a 'ray of hope' amid economic gloom. Union members made up 17.0 percent of Oregon's workforce in 2009, higher than the low point of 13.8 percent in 2006 and the highest figure seen since 1997. Although the change is related in part to the loss of jobs in the recession , membership growth may also be related to unions' success in reaching out to workers in new industries.

Unions substantially boost wages and benefits for workers they represent, especially for low-wage workers, according to the report. For example, data for 2003-07 show that the typical worker in Oregon got a 16.5 percent wage boost by being in a union, while the lowest-paid workers saw a wage gain of 21.1 percent.The benefits of unionization also spill over to nonunion workers, the report said, noting that in industries with a strong union presence, even nonunionized workers receive higher wages than similar workers in less unionized industries.