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SOCIAL COMPACT for Work and Workers

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SOCIAL COMPACT for Work and Workers FUTURE OF WORK IN CALIFORNIA A NEW SOCIAL COMPACT for work and workers RE OF W TU OR FU K CO N M MISSIO E OF W TUR OR FU K CO N M MISSIO Commissioners Produced by Institute for the Future (IFTF) for the California Future of Members of the Future of Work Commission were appointed by Governor Work Commission, with the support Gavin Newsom to help create inclusive, long-term economic growth and ensure from The James Irvine Foundation, Californians share in that success. Blue Shield of California Foundation, the Ford Foundation and Lumina Mary Kay Henry, Co-Chair Ash Kalra Foundation. President, Service Employees State Assemblymember, California International Union District 27 James Manyika, Co-Chair Stephane Kasriel Chairman & Director, McKinsey Former CEO, Upwork Global Institute Commission Staff Fei-Fei Li Anmol Chaddha, Roy Bahat Professor & Co-Director, Human- Manager Head, Bloomberg Beta Centered Artificial Intelligence Institute, Stanford Doug Bloch Alyssa Andersen Political Director, Teamsters Joint John Marshall Julie Ericsson Council 7 Senior Capital Markets Economist, United Food and Commercial Ben Gansky Soraya Coley Workers President, California Polytechnic Georgia Gillan State University, Pomona Art Pulaski Executive Secretary-Treasurer Marina Gorbis Lloyd Dean & Chief Officer, California Labor CEO, CommonSpirit Health Jean Hagan Federation Jennifer Granholm* Lyn Jeffery Maria S. Salinas Former Governor, State of Michigan President & CEO, Los Angeles Area Ilana Lipsett *Resigned from Commission Chamber of Commerce upon nomination as U.S. Secretary Anthony Weeks of Energy Peter Schwartz Senior Vice President of Strategic Lance Hastings Planning, Salesforce President, California Manufacturers & Technology Association Henry Stern State Senator, California Senate Carla Javits District 27 President & CEO, Roberts Enterprise Development Fund Mariana Viturro (REDF) Deputy Director, National Domestic Workers Alliance Saru Jayaraman President, One Fair Wage Betty Yee Director, Food Labor Research Controller, State of California Center, UC Berkeley Tom Kalil Chief Innovation Officer, Schmidt Futures © 2021 Institute for the Future for the California Future of Work Commission. All rights reserved. SR-2112E California Future of Work Commission | A New Social Compact for Work and Workers | March 2021 E OF W TUR OR FU K CO N M MISSIO Letter from the Co-Chairs March 2021 It has been our distinct privilege to chair the California Future of Work Commission over the past 18 months. We have had the pleasure of working alongside a group of esteemed and committed Commissioners who are leaders in their fields and who have contributed a wide array of ideas, experiences, and perspectives. This diverse group of strategic thinkers came together, ready to be bold, ambitious, and imaginative about what is required of us over the next decade to make sure all working people in California of every race, ethnicity, and gender have what they need to support their families, save for the future, and thrive. The importance of addressing the present and future challenges for work and workers in California has been clear from the start, and has been made even more pressing amidst the COVID-19 pandemic and the economic crisis that followed. The dedication, ambition, and bold ideas that the Commissioners contributed, and the inputs we have received from workers, employers, the public, and other stakeholders, have been instrumental to the Commission’s ability to recommend a path forward to address these challenges. Governor Gavin Newsom established the Future of Work Commission on May 1st, 2019, to “study, understand, analyze, and make recommendations regarding the kinds of jobs Californians could have in the decades to come; the impact of technology on work, workers, employers, jobs, and societies; methods of promoting better job quality, wages, and working conditions through technology; modernizing worker safety net protections; and the best way to preserve good jobs, ready the workforce for the jobs of the future throughout lifelong learning, and ensure shared prosperity for all.” The Commission has worked intensively over the last 18 months to assess the challenges related to the present and future of work in California, identify areas of focus, and develop recommendations for action. The Commission met with workers, employers, researchers, educators, civic leaders, and other stakeholders in public convenings held across various regions of the state, and virtually after COVID-19 hit. Although the Commission began its work prior to the COVID-19 pandemic, it has continued to work amidst the pandemic. As a result, the Commission’s findings and recommendations incorporate the reflections and learnings that the COVID-19 pandemic has so far illuminated regarding the current and future challenges facing California workers, as well as the findings of the Task Force on Business and Jobs Recovery, launched by Governor Gavin Newsom to advise the administration on rebuilding as quickly and safely as possible from the pandemic-induced recession. As the culmination of the Commission’s work, this report includes the Commission’s Key Findings and its recommendation for a new Social Compact for work and workers in California by 2030. Our vision for the Social Compact is based on a common understanding of shared values between employers, workers and their unions/organizations, education and training institutions, entrepreneurs, investors, corporations, technology developers and platforms, nonprofit organizations, government at all levels, the state, and others, and a commitment from each stakeholder to undertake actions, individually and collectively, that uphold these values and advance bold, measurable moonshot goals around five priorities by 2030 that translate this new Social Compact for Work and Workers into reality. While the five priorities we focus on are not comprehensive by any means, we believe they are essential to a future of work and workers in California. Our vision for the Social Compact is also based on a view of California that is always looking forward and creating a strong, innovative, competitive, and sustainable economy that attracts and creates opportunities for all. California is home to a diverse set of employers and entrepreneurs whose commitment and collaboration to advance these ambitious goals will be central to the achievement of the desired results. California Future of Work Commission | A New Social Compact for Work and Workers | March 2021 E OF W TUR OR FU K LETTER FROM THE CO-CHAIRS CO N M MISSIO While the Commission has concluded its work, the efforts to support work and workers in California are ongoing. The work to add to, improve, and turn recommendations into realities will require commitment and action from all stakeholders coming together, including employers, workers and their unions/organizations, education and training institutions, entrepreneurs, investors, corporations, technology developers and platforms, nonprofit organizations, the state, and other members of civil society who play important roles with respect to work and workers in California. We would like to thank all our fellow Commissioners for their work and their commitment to building a better future for work and workers in California. The Commissioners brought their diverse backgrounds and experiences to the work of the Commission and its shared goal, and for this we are grateful. We also thank the many workers, employers, civic leaders, other stakeholders, and members of the public that provided valuable input during our convenings and roundtables. We also want to thank the many researchers in California and elsewhere whose work we drew on, as well as other task forces on the future of work that we learned from. We are grateful to the Institute for the Future, who designed and led our process; and members of the Governor’s team, Secretary of the Labor and Workforce Development Agency Julie Su, Senior Policy Advisor for Higher Education Lande Ajose, Senior Advisor on Economic Strategy and External Affairs Aneesh Raman, and former Chief Economic and Business Advisor Lenny Mendonca, for their support and guidance. We also would like to thank our chiefs of staff, Peter Colavito, Brittany Presten, and Monique Tuin for their contributions to the work of the Commission. Finally, we thank Governor Gavin Newsom for his vision and leadership in establishing this Commission, and his dedication to building and rebuilding the Future of Work right here in California. Sincerely, Mary Kay Henry James Manyika President, Service Employees International Union Chairman & Director, McKinsey Global Institute California Future of Work Commission | A New Social Compact for Work and Workers | March 2021 Introduction Contents California, the fifth-largest economy in the world, 1 Introduction has been, and continues to be, at the center of many of the world’s innovations in science, technology, 3 Executive Summary and business. 13 Key Findings: Many of these innovations have become the foundations of economies everywhere, Challenges Facing Work and California’s entrepreneurs and businesses are the leaders in many aspects of and Workers in California the American and global economy. While California boasts a strong and vibrant economy by most measures of growth, too many Californians have not fully 38 A Social Compact for participated in or enjoyed the benefits of the state’s broader economic success and Work and Workers in the extraordinary wealth generated here, especially workers
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