Not All Benefits Are Equal

“I became a caregiver in 2005 after my sister became disabled from an accident and needed someone to take care of her. I went through classes and got my license, not expecting to be a caregiver for very long … but then the union came along and it just became a really good career, it’s been a good foundation for my family … We have medical, dental, optical, and retirement [benefits]. We get paid time off, we just won paid holidays. … I make $21.52 an hour. It’s not great but it is enough to keep a roof over my family and food in my kids’ bellies.” – Rhonda, home care worker and member of SEIU 775

Workers in Illinois, California, and Washington came together with their unions to fight for higher wages and better benefits. Overall, organizing led to far more favorable policies, particularly among home care workers. “There are so many things the union fought for and provided caregivers in the state of Washington,” said an SEIU home care worker there. “The list just goes on and on. It’s heartbreaking to hear of people doing the same work in other states and not being respected on the same level.” Indeed, we found significant variation in benefits, and less significant wins for family child care providers.

Wages

Unionization combined with collective bargaining led to increased wages for home care workers across the board. However, there remains significant variation across contracts. The wage in Illinois is significantly lower than in Washington, and in California, wages vary from county to county. As Brandi Wolf, policy and research director, Local 2015, explained, many places in California that are more conservative have refused to raise wages, leading to lower wages for those workers.

While child care workers have also won increased reimbursement rates when they unionized, this money does not necessarily translate into higher wages due to the significant overhead required to run a child care program. As family child care provider Pamela Franks said, “I don’t even make $12 an hour,” which is what she pays her employees. After paying for rent, supplies, and other expenses, there is very little left over. Moreover, because providers are often reimbursed by attendance instead of enrollment, if children are absent, providers are not paid. Finally, unpredictable paydays (being paid a different day each month) means that it is difficult for family child care providers to plan.

Retirement Benefits

Many workers have sought retirement benefits in their contracts to ensure economic stability for themselves and their families. However, few contracts have included these benefits. Of the XX states with home care authorities, only home care workers in Washington state have also been able to win retirement benefits.

Child care workers have been unable to win retirement benefits in any of the three states we studied. Nationally, fewer than 10 percent of child care workers have access to retirement benefits, indicating that this is a problem that goes far beyond these three states. Even though workers collectively bargain with the state, they are not state employees. This was intentional in places like Illinois and Washington because the financial cost of making workers state employees overnight was too great, in large part due to the generous retirement benefits state workers receive.

Paid Time Off

In our case studies, home care workers in Illinois and Washington receive paid sick days (and in other states, workers in Massachusetts and Minnesota have also won paid time off). Although these are limited in number, this is an important victory. During the COVID-19 pandemic, many other states have followed suit, indicating a potentially positive development in this area as these workers are recognized as essential.

As business owners, family child care providers often do not receive paid time off. As Illinois family child care provider Pamela Franks explained, if she does not work, she does not get paid, and she cannot afford to pay for a substitute. Though the union in Illinois is fighting for a substitute pool, and the union in Washington has won substitutes for workers, this benefit has yet to materialize. California was the exception in this area, with child care workers receiving guaranteed days off, which were actually increased during the pandemic.

Health Insurance

In each of the states we examined, home care workers receive health insurance. However, in other states, even those with collective bargaining rights, workers have been less successful. For example, in Minnesota, Connecticut, and Massachusetts—states with similar models—workers must instead turn to the health care exchange to purchase insurance.

Family child care providers in Illinois and Washington have both successfully won health insurance in their contracts. However, they are the only ones: those in California have not, though current negotiations may include health insurance, and nationally, only 15 percent of child care workers have access to health insurance.

Worker Voice

Even if a union does not win everything its members might hope for, unions universally provide a seat at the negotiating table. This fundamentally changes the nature of their work. As Helen Blank, a longtime leader in the child care policy space explained, “It’s important not to trivialize what they have done, because basic benefits for providers are a big deal.” Franks agrees, explaining, “We have a voice, a seat at the table. That’s the main thing the union brought us.”

When workers engage in collective bargaining, they not only win benefits but become partners in determining their working conditions. It establishes a long-term relationship with the state, setting the groundwork for future negotiations and wins. As Terri Harkin, a senior program manager at H-CAP explained, one important improvement in working conditions that workers have achieved is getting paid properly and on time, as workers can demand solutions. Additionally, during the COVID-19 pandemic, workers were able to advocate for better personal protective equipment. The union therefore also allows workers to collectively address new issues and seek continuous improvement.

Home Care Cooperatives

Home care cooperatives have slim margins, but they provide broad benefits to workers. CHCA workers have access to health benefits, paid leave, and sick leave, largely thanks to the worker-ownership model that centers worker needs and concerns. However, while worker cooperatives like CHCA prioritize workers’ needs and job quality, home care cooperatives are still operating under extremely slim profit margins, limiting the resources they can successfully reinvest in their workforce.