Who We Are

A federation of the unaffiliated.

October 26, 2006

THE INDEPENDENT WORKFORCE
NEEDS A NEW FORM OF UNIONISM


New Survey Overwhelmingly Shows that Independent Workers are
Civically and Politically Engaged But Believe Elected Officials
Do Not Understand the Critical Challenges They Face


While 90% of respondents to Freelancers Union's recent survey are active voters, 97% of these NYC-based independent workers believe that elected officials do not understand the critical challenges they face trying to get affordable health insurance, dealing with an onerous tax code, and accessing programs like unemployment insurance and worker's compensation.

This and other survey data is contained in a new report titled New Unionism & the Next Social Safety Net released today by Freelancers Union, a nonprofit organization dedicated to addressing the needs and concerns of America's growing independent workforce - a group that makes up over 30% of the nation's workers.

According to the report, the traditional employer-centered model of work that provides a paycheck as well as health insurance, retirement plans, and access to government-sponsored social insurance programs is evolving into a variety of alternative and flexible models of work. About 30% of workers are in "alternative" arrangements, as independent contractors, temps, part-timers, contract workers, and the self-employed.

Sara Horowitz, executive director of Freelancers Union, said, "Our survey data has consistently shown that independent workers struggle to find affordable health insurance, save for retirement, and manage their erratic incomes. Though they are politically and civically engaged, they feel that elected officials and the media overlook their needs."

Horowitz added, "We are at a moment in history where a new union model is needed to help the workers of the 21st century participate in the creation of the next social safety net."

These new unions would:

  • Bargain on behalf of their members for affordable health insurance plans and other services.
  • Provide a unified voice to advocate for their members' needs.
  • Work with policy makers, elected officials and government to pioneer access to traditional social insurance programs--such as unemployment insurance, worker's comp, anti-discrimination protection, OSHA, and even transportation and child-care tax breaks--that currently do not include them.

Among the surveys findings are:

Freelancers lack benefits traditional workers have.

  • In the past year, roughly 39% of respondents experienced a period without health insurance.
  • 80% of respondents avoided seeking medical care when they were uninsured.
  • 1/3 of respondents have saved less than $1,000 for retirement.
  • 79% of respondents would be willing to pay to get access to an unemployment insurance program.

Freelancers are an emerging and untapped constituency that votes.

  • 81% of respondents view freelancers as a group with common interests and goals
  • 92% are registered voters.
  • 90% have voted in a national election in the last 5 years.
  • 40% have donated money to a political campaign.

Freelancers are highly educated and play a large role in New York City's economy as workers and consumers.

  • 83% of respondents have a college degree.
  • Approximately 3/5 earned between $25,000 and $75,000 in 2005.
  • Respondents are spread across a range of occupations and industries including art & design (33%), media (14%), and technology (8%) - with others working in financial, business and legal services; advertising; or fitness and healthcare.

Horowitz said that independent workers face tremendous challenges as they pursue careers within a system designed to support an older model of the workforce. She also warned that as employers continue to cut benefits like health insurance and pensions, traditional full-time workers might soon find themselves in need of a new system as well.

To that end, Freelancers Union makes the following policy recommendations:

  • Revise the tax code to make it more equitable for independent workers.
  • Revise ERISA to allow non-employer intermediary organizations to offer group-based retirement plans with the same group structure afforded to large employers.
  • Establish innovative unemployment insurance programs for independent workers.
  • Establish a government agency, similar to the Small Business Administration, to be responsive to and supportive of independent workers.

Methodology: Freelancers Union conducted an online survey of over 3,000 independent workers in April & May 2006. The survey was distributed electronically to Freelancers Union members and to non-member independent workers through Freelancers Union partner organizations.


About Freelancers Union: Freelancers Union is part of WORKING TODAY, a 501(c)(3) non-profit organization that addresses the needs of America's growing independent workforce through advocacy, information and service. Founded in 1995 by Sara Horowitz, a MacArthur "Genius" Award recipient, and a 2004 & 2006 Fast Company Social Capitalist Award recipient, the group represents freelancers, consultants, independent contractors, temps, part-timers, contingent employees and the self-employed, who collectively make up about 30% of the nation's workforce.