Monthly Archive for October, 2010

The Imperative to Protect Women’s Economic Security

Debra Ness, President

Debra Ness, President

President Obama has made protecting women’s economic security a priority since Day One.

The first bill he signed into law was the Lilly Ledbetter Fair Pay Act, which reversed a harmful U.S. Supreme Court ruling that made it nearly impossible for victims of wage discrimination to seek justice in the courts.

The Fair Pay Act was not just a legislative flash-in-the-pan; rather, it marked the beginning of a deep commitment by the administration to protect women’s economic security.

This is evident in a new report released by the White House Thursday that outlines numerous efforts over the last two years to protect and create jobs for women and to keep millions of women and families out of poverty during one of the deepest recessions in the nation’s history.

The report covers a wide range of policies supported by the administration that benefit women, including efforts to promote job growth in sectors such as education and health care; support female entrepreneurs and small business owners; invest in programs to encourage girls to pursue male-dominated professions; promote policies to help workers balance work and family responsibilities; expand tax credits that help low-income families; narrow the wage gap; and many others.

These policies—some of which have been implemented and others of which are pending—are critical supports for women, who now comprise nearly 50 percent of the labor force and who are the sole or co-breadwinner in millions of American families.

One of the biggest long-term challenges to women’s success in the workplace, however, is wage discrimination. More than four decades after the enactment of the Equal Pay Act, women still are paid only 77 cents for every dollar paid to men.

We can help right this historic wrong with the Paycheck Fairness Act, which would take important steps toward ending pay discrimination. The House of Representatives has already passed this vital bill, and President Obama Strongly supports it. The Senate has a golden window of opportunity to advance this bill when Congress reconvenes after the November elections. Let’s get the Paycheck Fairness Act signed into law now.

Indeed, passing a bill to narrow the stubborn pay gap would be the perfect bookend to a Congress that began with a bold reversal of a ruling that gutted pay protections for women and that has seen considered numerous efforts to protect women’s economic security during these difficult times.

The Gap that Keeps on Giving: Paycheck Unfairness Hurts in Retirement Too

Portia Wu, Vice President

Portia Wu, Vice President

It is well-documented that the wage gap hurts women and their families by denying them the fair wages that would help them pay for essential items like groceries, gasoline, and rent or mortgage payments. But the pay gap hurts women long after they have left the workforce, too.

The 77 cent wage gap adds up to $430,000 less for full-time women workers over a career. That’s $430,000 less that a woman can use not only to support her family but also to support herself in retirement. Not only that -­ but over time those wages could have been invested, with additional returns for retirement savings: a Wall Street Journal piece compared hypothetical male and female managers and found that, if the male manager earned $350,000 more than the female manage did over 15 years, he’d also end up saving 23 percent more for retirement if both contributed 10% of their income to their retirement funds each year.

Pensions, too, are based on wages, so the wage gap also carries over into retirement by reducing the funds a woman will receive from her employer pension plan. The average annual pension income for women over age 65 is only $12,856, compared with $19,508 for men – and the wage gap is a good part of the reason.

As Lilly Ledbetter said about the wage discrimination she faced, “It affected me into retirement because my retirement was based on what I earned…  And my Social Security is also much less than what I should have, because it is also based on what I earned while working. So I won’t only be a second class citizen in their eyes for the time I worked, but I will be for the rest of my life.

There are some actions women and families can take to address this and help keep women out of poverty in old age. But it’s fair to look to our government, too.  And this fall, when Congress comes back after the elections, let’s ask members to take steps to protect women in Social Security and equal pay.

Last week Senator Reid laid down a petition to start debate on the Paycheck Fairness Act.  The Senate will vote on this when it returns. Beating the filibuster and passing this bill is one way to address the wage gap that is penalizing millions of us.  Another is to ensure that Social Security continues to be there, and gives women a fair break.

The Power of Three

Judith L. Lichtman, Senior Advisor

Judith L. Lichtman, Senior Advisor

It’s the first Monday in October, and the Supreme Court convenes today for a new term.  But this term is different from all others because, today for the first time ever, three women are serving together on our highest court. It is significant — momentous — that one-third of the Court is female, even though that fraction does not yet represent our proportion of the population.  But it is a sign of progress that was once almost unimaginable for me and most of my peers.

Elena Kagan’s appointment is about more than just numbers. Her appointment brings us closer to the day when it is no longer surprising to see a woman on the Supreme Court or in other positions of power, closer to the day when powerful female role models are the norm.

I’ve known Justice Kagan for many years, and I know she will make us all proud.  As she rules on cases, she will have the chance to demonstrate her towering intellect, fairness, independence, and fierce commitment to justice for all.  I know that she will continue to be an inspiration to me and to all of us who strive for justice.

So I look forward to this new Supreme Court term, and to seeing three female justices together on our highest court. So today, we celebrate our new Supreme Court Justice and tomorrow, we continue to work toward the day when we there are four — or even five! — female justices and, someday soon, true equality in all branches of government and our society.