"For at least the last 40 years, pay and job quality for workers across the South has been inferior compared to other regions—thanks to the racist and anti-worker Southern economic development model."
That's according to a Thursday report by Chandra Childers, a senior policy and economic analyst at the Economic Policy Institute (EPI). The new publication is part of her "Rooted in Racism and Economic Exploitation" series.
Previous documents in the series have discussed how "Southern politicians claim that 'business-friendly' policies lead to an abundance of jobs and economic prosperity" but in reality, their failed model is designed "to extract the labor of Black and brown Southerners as cheaply as possible" and has resulted in "economic underperformance."
"Because of the political opposition to unions, when workers try to organize, employers know that they can illegally intimidate them, refuse to recognize the union, or negotiate a contract in bad faith."
Thursday's report dives into various elements of the Southern economic development model, which "is characterized by low wages, limited regulations on businesses, a regressive tax system, subsidies that funnel tax dollars to the wealthy and corporations, a weak safety net, and staunchly anti-union policies and practices."
Childers uses a U.S. Census Bureau definition of the South, which includes: Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, and the District of Columbia.
The EPI report highlights that "Southern states have lower median wages than other regions," "low-wage workers make up a larger share of the workforce across the South," and "every state that lacks a state minimum wage" is in the region.
The publication also points out the decline of coverage from employer-provided health insurance and pensions in the South, as well as how workers there "have less access to paid leave than their peers in other regions" and "Southern state lawmakers have also disempowered local communities."
"Across the South, most states have passed so-called right-to-work laws, with the exceptions of Delaware, Maryland, and the District of Columbia," Childers detailed. "Right-to-work laws do not, in any way, guarantee workers will have access to a job if they want one. They simply make it harder for unions to be financially sustainable."
"In addition to right-to-work laws and the overall opposition from political leaders across the region, workers seeking to organize a union typically face intense opposition from employers," she continued. "Further, because of the political opposition to unions, when workers try to organize, employers know that they can illegally intimidate them, refuse to recognize the union, or negotiate a contract in bad faith—with little to no fear of being held accountable by political leaders."
While "there are city and county officials who support higher minimum wages and access to pensions and paid leave for workers" in the South, she explained, their ability to take action is limited by preemption, which "is when state policymakers either block a local ordinance or dismantle an existing ordinance" intended to help the working class.
Childers' report doesn't explicitly point fingers at particular political parties, but the region has been largely dominated by Republican officials during the past four decades covered by the analysis.
While the Republican presidential campaign of former President Donald Trump is clearly making a play for working-class voters by selecting Sen. JD Vance (R-Ohio) as the vice presidential candidate and inviting International Brotherhood of Teamsters general president Sean O'Brien to speak at this week's convention—provoking criticism from progressive politicians and labor leaders—Southern GOP leaders continue to display disdain toward efforts to organize workers.
As Volkswagen employees in Tennessee began voting on whether to join the United Auto Workers in April, six Southern GOP governors put out a joint statement saying they were "highly concerned about the unionization campaign driven by misinformation and scare tactics that the UAW has brought into our states."
EPI said at the time that the governors' anti-union statement "clearly shows how scared they are that workers organizing with UAW to improve jobs and wages will upend the highly unequal, failed anti-worker economic development model of Southern states."
The Chattanooga vote was a success, but the following month organizers faced a tough loss at a pair of Mercedes-Benz plants in Alabama, where the UAW is now seeking a new election. Meanwhile, regional GOP policymakers have ramped up attacks on unions, advancing legislation that makes organizing harder.
"To begin to work toward changing the Southern economic development model," Childers argued, "it will be important for Southerners from all backgrounds—across race, ethnicity, gender, immigrant statuses, and income levels—to stand together and build the coalitions needed to demand policymakers create a new economic development model."
The expert urged people across the South to fight for a model that includes a living wage, guaranteed health insurance, pensions, and paid leave.
"Finally, and perhaps most important, workers must be able to come together in a union to demand fair wages and benefits, a safe working environment, and the ability to have a say about their workplace—even when politicians are intransigent," she stressed. "This is a model that would serve the interests of all Southerners."
