‘Normal’ won’t work anymore

Pandemic creates chance for new social contract for employment

Our nation is at a crossroads — not only as we recover from the COVID19 pandemic, but also as we enter a complex future defined by continued technological developments, evolving globalization, demographic shifts, racial inequity and climate change.

At the center of these trends is the fate of working people, who were struggling long before the pandemic and who can’t afford a return to the status quo.

This moment represents a onceinageneration opportunity to change the trajectory of work in the United States to ensure that the average worker can benefit, not be left behind. We must create a new social compact for work and workers that commits all stakeholders, including workers, employers, government, and other institutions, to values of equity and inclusion and bold goals including ensuring quality jobs, eliminating working poverty, and equipping all workers with the skills and supports to fully participate in the economy now and into the future.

As we write that social compact, we don’t need to speculate about what the future of work will look like in this country — in California, it’s already here.

The Golden State economy is responsible for some of the most iconic innovations and home to leading companies that are the envy of the world. But workers in California face challenges that are severe symptoms of trends that exist nationwide, including the rising cost of living, persistent wealth and income inequality, and diverging trajectories across geographies. Compounded by challenges many workers face on the job, these factors limit the potential of California’s economy, especially coming out of a pandemic that has devastated communities of color.

In addition to these current challenges, we must prepare and solve for challenges around the corner. The types of jobs projected to grow the fastest, from personal care aides to food service cooks and cashiers, are also those with the lowest pay and lowest quality working conditions, and as technology and economic trends advance, while shocks due to climate change grow in frequency and intensity, workers will need to change occupations, learn new skills, and adapt to new challenges.

To ensure an equitable recovery from the COVID19 pandemic with good, highroad jobs at its center, the Future of Work Commission — convened in 2019 by Gov. Gavin Newsom to study the systemic challenges facing workers — proposes a new Social Compact for Work and Workers. It outlines a shared set of values and principles for workers, employers, government, and other stakeholders, framed around a set of ambitious, moon shot goals over the next decade.

First, job creation will be critical as we recover from this crisis. There should be enough jobs for everyone who wants to work, with a focus on raising the quality of jobs. Job creation should be led by the private sector, in priority areas like green infrastructure and health care and we should provide incentives for businesses that acknowledge that employer and worker wellbeing are inextricably intertwined.

Bold policy goals to address issues such as climate sustainability, affordable housing, transportation infrastructure, and quality care for children and the elderly are opportunities to create good quality jobs in the communities that need them the most. In addition, the California Future of Work Commission is calling on the federal government to enact a job guarantee to make this a reality across the country.

Second, our nation must eliminate the working poverty that has plagued too many communities, especially women and workers of color, for far too long. By raising wages for workers in growing, lowpaying industries; addressing the high cost of living across the state; extending employment benefits to traditionally excluded workforces; and empowering workers, such as through labor unions to achieve higher wages and benefits, we can position the future of work to work for all. A national response would lift the floor for all workers.

Third, we must prepare workers for the future. This will require a major focus on creating jobs that meet future needs and priorities, while preparing and equipping current and future workers with the training and skills to transition to indemand jobs, work safely and effectively alongside technology, and relocate, in response to technology, climate and other shocks. For example, as we have seen in California, jobs in vegetation management and utilities are key to preventing fires and mitigating the effects of global warming.

Our aim in proposing such a social compact is to address the systemic challenges that have burdened working people for far too long, and commits our nation to a few bold goals for equity and inclusion. Without it, the success and growth of our economy will be constrained.

As the COVID19 pandemic has shown us, our fates are interconnected — all of us cannot truly prosper as long as those who pick and serve our food, sew our garments, build our homes, sort and deliver our goods, and

care for our family members continue to struggle.

That’s why solutions will need to involve all stakeholders working together: businesses and industry associations, workers and worker organizations, educational and training institutions, nonprofit organizations, philanthropy, government and others.

Central to our success will be the commitment and collaboration of a diverse set of employers and entrepreneurs that are ready to embrace a better future for working people.

Take it from the leaders in the Business Roundtable, who already declared before the pandemic that we need an economy that prioritizes all stakeholders, not just shareholders. Now more than ever we must join together and create the future of work that will work for all of us.

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