1
00:00:05,310 --> 00:00:07,300
We're speaking today
with Tom Perez,

2
00:00:07,300 --> 00:00:09,680
the Secretary of Labor
for the United States

3
00:00:09,680 --> 00:00:10,660
Department of Labor.

4
00:00:10,660 --> 00:00:12,710
So thank you, Mr.
Secretary, for joining us.

5
00:00:12,710 --> 00:00:14,275
Oh, it's a pleasure
to be with you.

6
00:00:14,275 --> 00:00:15,650
Maybe you could
talk a little bit

7
00:00:15,650 --> 00:00:17,950
about what's changed
since you and I

8
00:00:17,950 --> 00:00:20,460
entered the labor force
a number of years ago.

9
00:00:20,460 --> 00:00:22,460
I'm thinking about a
good friend of mine

10
00:00:22,460 --> 00:00:26,190
whose dad graduated
high school, went

11
00:00:26,190 --> 00:00:30,490
to work at Bethlehem Steel,
and worked there for 42 years.

12
00:00:30,490 --> 00:00:34,740
And as we fast
forward to today, it

13
00:00:34,740 --> 00:00:37,610
is much less frequent to
see someone at a job for 30,

14
00:00:37,610 --> 00:00:40,520
40 years like our
parents' generation.

15
00:00:40,520 --> 00:00:44,390
And once again, you look in
the world of manufacturing

16
00:00:44,390 --> 00:00:46,020
just to take one example.

17
00:00:46,020 --> 00:00:49,050
The jobs of today are quite
different than the jobs

18
00:00:49,050 --> 00:00:49,990
of yesterday.

19
00:00:49,990 --> 00:00:54,190
And frankly, in many
cases, a high school degree

20
00:00:54,190 --> 00:00:55,760
simply won't suffice.

21
00:00:55,760 --> 00:00:58,180
And so my parents
always taught me

22
00:00:58,180 --> 00:01:00,020
education is the
great equalizer.

23
00:01:00,020 --> 00:01:02,240
It's what made
America a superpower.

24
00:01:02,240 --> 00:01:07,030
This commitment to free public
elementary and secondary

25
00:01:07,030 --> 00:01:11,220
education, and today we need
to keep that investment.

26
00:01:11,220 --> 00:01:13,740
Maybe we could focus on some
of the current challenges

27
00:01:13,740 --> 00:01:14,910
and opportunities.

28
00:01:14,910 --> 00:01:17,690
We're coming out of
this great recession,

29
00:01:17,690 --> 00:01:19,720
the worst since the
Great Depression.

30
00:01:19,720 --> 00:01:23,770
The economy's been growing, but
not everyone is sharing equally

31
00:01:23,770 --> 00:01:26,340
in benefits of the growth.

32
00:01:26,340 --> 00:01:28,590
What accounts for
where we are today?

33
00:01:28,590 --> 00:01:31,327
Well, it's always important
to look at where we were,

34
00:01:31,327 --> 00:01:32,910
where we are, and
where we need to go.

35
00:01:32,910 --> 00:01:38,190
The rising tide of progress
in the late '90s that we saw

36
00:01:38,190 --> 00:01:40,070
lifted more boats.

37
00:01:40,070 --> 00:01:44,440
Today, that rising tide
isn't lifting as many boats

38
00:01:44,440 --> 00:01:45,690
as it needs to.

39
00:01:45,690 --> 00:01:47,880
We need to make sure that
everybody has that chance,

40
00:01:47,880 --> 00:01:51,370
and one of the biggest
challenges in this context

41
00:01:51,370 --> 00:01:57,130
is addressing the issue of
stubbornly stagnant wages.

42
00:01:57,130 --> 00:01:59,320
And that's not
simply a phenomenon

43
00:01:59,320 --> 00:02:00,380
of the great recession.

44
00:02:00,380 --> 00:02:05,790
For decades, productivity
growth and real wage growth

45
00:02:05,790 --> 00:02:07,380
rose hand in hand.

46
00:02:07,380 --> 00:02:11,410
And then starting around
1980, that began to change.

47
00:02:11,410 --> 00:02:14,340
And we see productivity
increases of over 90%

48
00:02:14,340 --> 00:02:17,170
and real wage
growth of 2% or 3%.

49
00:02:17,170 --> 00:02:18,880
And that's unfair to workers.

50
00:02:18,880 --> 00:02:23,380
Workers have helped bake
the pie of prosperity,

51
00:02:23,380 --> 00:02:26,000
but their sweat equity
hasn't translated

52
00:02:26,000 --> 00:02:28,950
into financial equity for them.

53
00:02:28,950 --> 00:02:31,820
And so too many people haven't
gotten a raise in years.

54
00:02:31,820 --> 00:02:34,310
Too many people are
working two, three jobs.

55
00:02:34,310 --> 00:02:36,140
One of the best family
values is the value

56
00:02:36,140 --> 00:02:38,750
of time spent with your
family, and folks just

57
00:02:38,750 --> 00:02:40,480
don't have enough
time to do that.

58
00:02:40,480 --> 00:02:44,030
We could talk a little bit,
perhaps, about how we can get

59
00:02:44,030 --> 00:02:48,110
wages and high quality jobs
moving in the right direction.

60
00:02:48,110 --> 00:02:50,550
And I know you are
an ardent advocate

61
00:02:50,550 --> 00:02:51,610
for the administration--

62
00:02:51,610 --> 00:02:54,690
for the country-- about the
importance of skills and skill

63
00:02:54,690 --> 00:02:55,380
development.

64
00:02:55,380 --> 00:02:58,120
I wonder if you could say
what your thoughts are

65
00:02:58,120 --> 00:03:02,070
on what workers might do and
what kind of opportunities

66
00:03:02,070 --> 00:03:05,480
we need to provide for workers
to keep those skills current so

67
00:03:05,480 --> 00:03:07,680
that people can adapt over time.

68
00:03:07,680 --> 00:03:10,810
You look at the data and
the education dividend

69
00:03:10,810 --> 00:03:12,050
is undeniable.

70
00:03:12,050 --> 00:03:14,690
The more education you have,
the greater the chances

71
00:03:14,690 --> 00:03:17,390
are that you can punch your
ticket to the middle class

72
00:03:17,390 --> 00:03:18,500
and then stay there.

73
00:03:18,500 --> 00:03:20,440
It's important to
recognize that there

74
00:03:20,440 --> 00:03:23,760
are multiple educational
pathways to the middle class.

75
00:03:23,760 --> 00:03:25,690
Some people graduate
high school and go

76
00:03:25,690 --> 00:03:28,530
to college, but other people--

77
00:03:28,530 --> 00:03:31,180
especially when I was growing
up in Buffalo-- a lot of folks

78
00:03:31,180 --> 00:03:33,060
went through the
apprenticeship route.

79
00:03:33,060 --> 00:03:36,470
And that route, if you go
to places like Germany,

80
00:03:36,470 --> 00:03:41,150
has equal stature with
the four-year route.

81
00:03:41,150 --> 00:03:43,680
And here in America,
we've devalued

82
00:03:43,680 --> 00:03:45,490
that over the course
of recent decades.

83
00:03:45,490 --> 00:03:48,070
And that's why this
president, and we

84
00:03:48,070 --> 00:03:50,320
at the Department of Labor,
are trying to change that.

85
00:03:50,320 --> 00:03:54,450
And I've met so many folks who
have completed apprenticeship

86
00:03:54,450 --> 00:03:56,960
programs, whether it's the
traditional skilled trades,

87
00:03:56,960 --> 00:04:00,140
whether it's IT, whether
it's in the health sectors.

88
00:04:00,140 --> 00:04:04,940
These are alternative
pathways to higher ed,

89
00:04:04,940 --> 00:04:07,000
and many of these
folks who complete

90
00:04:07,000 --> 00:04:10,244
apprenticeships then get
an associate's degree

91
00:04:10,244 --> 00:04:12,660
at a community college and
then go to a four-year college.

92
00:04:12,660 --> 00:04:15,870
So it's important
as people think

93
00:04:15,870 --> 00:04:21,500
about that pathway to upscaling
to recognize that there are

94
00:04:21,500 --> 00:04:23,610
multiple entry
points, and they all

95
00:04:23,610 --> 00:04:28,070
lead to core competencies
that enable you to compete

96
00:04:28,070 --> 00:04:30,290
and thrive, not only
in today's economy,

97
00:04:30,290 --> 00:04:32,150
but in tomorrow's economy.

98
00:04:32,150 --> 00:04:33,940
Well, I think your
work on apprenticeships

99
00:04:33,940 --> 00:04:35,950
is so important because
the evidence is so

100
00:04:35,950 --> 00:04:38,020
clear on how well they pay off.

101
00:04:38,020 --> 00:04:40,460
For every dollar we
invest in apprenticeship,

102
00:04:40,460 --> 00:04:43,100
the return is
something like $27.

103
00:04:43,100 --> 00:04:47,810
I wish every investment we
made had that kind of return.

104
00:04:47,810 --> 00:04:49,950
One of the concepts that
we use in this course

105
00:04:49,950 --> 00:04:53,270
is the term social
contract, and you've

106
00:04:53,270 --> 00:04:57,860
been an articulate
proponent of a strong voice

107
00:04:57,860 --> 00:04:59,290
for the American workforce.

108
00:04:59,290 --> 00:05:02,290
I wonder if you could speak
a bit about the role of voice

109
00:05:02,290 --> 00:05:05,020
in our economy, and
what it means to workers

110
00:05:05,020 --> 00:05:07,100
and what it means
to our society.

111
00:05:07,100 --> 00:05:10,440
It's not a coincidence in
my mind that the periods

112
00:05:10,440 --> 00:05:13,150
in our nation's history-- in
the 20th century for instance--

113
00:05:13,150 --> 00:05:16,740
where you had decade after
decade of real wage growth

114
00:05:16,740 --> 00:05:23,410
didn't just coincide but
coexisted with a period of time

115
00:05:23,410 --> 00:05:26,000
where workers had
a collective voice.

116
00:05:26,000 --> 00:05:28,510
Where you had much
higher union density.

117
00:05:28,510 --> 00:05:29,860
Where people could advocate.

118
00:05:29,860 --> 00:05:31,270
America's greatest
generation who

119
00:05:31,270 --> 00:05:34,300
fought in World War II--
millions of them came home,

120
00:05:34,300 --> 00:05:35,820
and what did they do?

121
00:05:35,820 --> 00:05:38,650
They worked
collectively once again

122
00:05:38,650 --> 00:05:41,450
in the workplace to
fight for fair wages.

123
00:05:41,450 --> 00:05:47,040
And what we I think have
lost today is too many

124
00:05:47,040 --> 00:05:51,360
folks have bought into
this false choice of you

125
00:05:51,360 --> 00:05:53,640
either take care
of your shareholder

126
00:05:53,640 --> 00:05:57,120
or you take care of your
worker, but you can't do both.

127
00:05:57,120 --> 00:06:00,630
I categorically reject that,
and it is indeed a false choice.

128
00:06:00,630 --> 00:06:03,100
You look at places
like the Ford Motor

129
00:06:03,100 --> 00:06:06,490
Company, an existential
crisis in the great recession.

130
00:06:06,490 --> 00:06:07,480
And what happened?

131
00:06:07,480 --> 00:06:13,160
The UAW and Ford got
together around a plan

132
00:06:13,160 --> 00:06:15,990
of shared sacrifice leading
to shared prosperity.

133
00:06:15,990 --> 00:06:19,740
So I visited a plant in
Louisville, Kentucky,

134
00:06:19,740 --> 00:06:21,200
that makes the Ford Escape.

135
00:06:21,200 --> 00:06:24,270
And in 2007, they were
down to about 700 workers.

136
00:06:24,270 --> 00:06:25,770
They weren't sure
if they were going

137
00:06:25,770 --> 00:06:27,500
to shutter the plant entirely.

138
00:06:27,500 --> 00:06:30,990
And as a result of
that cooperation,

139
00:06:30,990 --> 00:06:35,460
you see shared sacrifice
leading to shared prosperity.

140
00:06:35,460 --> 00:06:38,800
And today, they're 4,400
employees and growing,

141
00:06:38,800 --> 00:06:40,930
and that doesn't include
the supply chain.

142
00:06:40,930 --> 00:06:45,380
So when the workers have
a voice, America succeeds.

143
00:06:45,380 --> 00:06:47,690
There are many ways to
give voice to workers.

144
00:06:47,690 --> 00:06:49,940
Unions are certainly one way.

145
00:06:49,940 --> 00:06:53,600
There are also a
number of nonprofits

146
00:06:53,600 --> 00:06:57,610
that are working with taxicab
drivers and home health

147
00:06:57,610 --> 00:06:59,540
workers and fast food workers.

148
00:06:59,540 --> 00:07:02,740
Nonprofits that are very
agile, and they're really

149
00:07:02,740 --> 00:07:05,540
standing up for low wage
workers trying to give voice.

150
00:07:05,540 --> 00:07:07,760
There are a lot of
headwinds in this issue.

151
00:07:07,760 --> 00:07:10,240
There are courts
right now that are

152
00:07:10,240 --> 00:07:13,100
hostile to efforts to organize.

153
00:07:13,100 --> 00:07:15,000
There's hostile
state legislatures

154
00:07:15,000 --> 00:07:18,370
right now that are making it
hard for public sector workers

155
00:07:18,370 --> 00:07:19,780
to move forward.

156
00:07:19,780 --> 00:07:23,780
There are well-heeled
multi-billionaires

157
00:07:23,780 --> 00:07:27,300
who are spending a lot of
money trying to muzzle voice.

158
00:07:27,300 --> 00:07:30,010
But these forces
existed 100 years ago.

159
00:07:30,010 --> 00:07:31,780
We've defeated these before.

160
00:07:31,780 --> 00:07:33,660
The arc of the moral
universe has always

161
00:07:33,660 --> 00:07:36,330
bent toward justice
and toward those

162
00:07:36,330 --> 00:07:39,500
who seek to expand opportunity.

163
00:07:39,500 --> 00:07:41,530
But it doesn't bend on its own.

164
00:07:41,530 --> 00:07:45,290
I'm wondering if you
would like to conclude

165
00:07:45,290 --> 00:07:49,600
with your own advice for the
next generation workforce.

166
00:07:49,600 --> 00:07:52,180
First of all, I think education
is the great equalizer.

167
00:07:52,180 --> 00:07:55,500
So you want to make sure that
you have the skills to compete

168
00:07:55,500 --> 00:07:56,670
today and tomorrow.

169
00:07:56,670 --> 00:07:58,850
Secondly, you need
to find your passion.

170
00:07:58,850 --> 00:08:01,820
Happiest is the person whose
job is his or her hobby

171
00:08:01,820 --> 00:08:04,250
because then you never have
to work a day in your life.

172
00:08:04,250 --> 00:08:07,750
Third, you need to reject
these false choices of those

173
00:08:07,750 --> 00:08:10,590
who suggest that if you burn
out your neighbor's candle,

174
00:08:10,590 --> 00:08:12,830
that will make your
candle shine brighter.

175
00:08:12,830 --> 00:08:14,910
That's never been who
we are as a nation.

176
00:08:14,910 --> 00:08:18,360
We've always been a community
recognizing that we all succeed

177
00:08:18,360 --> 00:08:20,610
only when we all succeed.

178
00:08:20,610 --> 00:08:24,490
We rise and fall on the
strength of our middle class

179
00:08:24,490 --> 00:08:27,750
and the strength of our
ladders of opportunity

180
00:08:27,750 --> 00:08:28,830
to the middle class.

181
00:08:28,830 --> 00:08:32,400
And so I want everyone-- all
your students-- to make sure

182
00:08:32,400 --> 00:08:36,240
they understand that
opportunities abound.

183
00:08:36,240 --> 00:08:39,919
And low wages and
no benefits are

184
00:08:39,919 --> 00:08:42,549
a choice that
companies make, not

185
00:08:42,549 --> 00:08:47,960
a necessity born out of
globalization or technology

186
00:08:47,960 --> 00:08:48,900
advances.

187
00:08:48,900 --> 00:08:50,720
These are choices.

188
00:08:50,720 --> 00:08:55,330
And you need to make that choice
as a student to get involved

189
00:08:55,330 --> 00:08:56,840
and to exert leadership.

190
00:08:56,840 --> 00:08:59,680
Well, a very, very powerful
statement, Mr. Secretary.

191
00:08:59,680 --> 00:09:02,610
Thank you for all you
do and for everyone

192
00:09:02,610 --> 00:09:05,340
here at the Department of Labor
does for the current generation

193
00:09:05,340 --> 00:09:07,440
workforce, and for
all of those to come.

194
00:09:07,440 --> 00:09:08,410
Well, it's an honor.

195
00:09:08,410 --> 00:09:09,340
Take care.

196
00:09:09,340 --> 00:09:11,280
Thanks again.