Campaign News

Bill Moyers & Company - April 9, 2015, by Katie Rose Quandt - Front-line workers at our nation’s big banks — tellers, loan interviewers and customer service representatives — are required by their employers to exploit customers, according to a revealing report out today from the Center for Popular Democracy (CPD). Big banks have internal systems of penalties and rewards that entice employees to push subprime loans and credit cards on customers who would be better off without them.

CPD’s report outlines several illegal predatory practices big banks have been caught employing, usually via their front-line workers:

Blatantly discriminatory lending: In 2011 and 2012, Bank of America and Wells Fargo paid out settlements for charging higher rates and fees to tens of thousands of African American and Hispanic borrowers than to similarly qualified white customers. Minority customers were also more likely to be steered into (more expensive, riskier) subprime mortgages.

Manipulating payment processing to maximize overdraft charges: When a savings account balance drops too low, the bank charges a hefty overdraft fee on each subsequent purchase. Both Bank of America and US Bank paid settlements for intentionally processing customers’ largest debit card payments first, regardless of chronological order, in order to hit $0 faster and maximize overdraft fees. US Bank was also accused of allowing debit card purchases on zero-balance accounts to go through (and incur overdraft fees), instead of denying the charges upfront.

Forcing sale of unneeded products: Wells Fargo, JP Morgan Chase and Citigroup were accused of forcing customers to purchase overpriced property insurance.

Manipulative sales quotas: Lawsuits show Wells Fargo and Bank of America created incentive programs for employees with the interests of the company — not the customer — in mind. Wells Fargo’s sales quotas encouraged bank workers to steer prime-eligible customers to subprime loans, while falsifying other clients’ income information without their knowledge. Bank of America’s “Hustle” program rewarded quantity over quality, encouraging workers to skip processes and checks intended to protect the borrower.

Instead of cutting back on the risky, unethical practices that led to the Great Recession, the CPD report asserts that big banks have not learned from their mistakes. Bank workers report higher levels of sales pressure in 2013 than in 2008, and most do not have the job security or seniority to simply refuse to hawk credit cards or steer customers into risky financial situations. While the financial sector is turning near-record profits, the average bank teller made just $12.25 an hour in 2013 (a real-dollar decrease from 2007), causing 31 percent of tellers’ families to rely on public assistance. What’s more, 85 percent of these underpaid front-line bank employees are women, and one-third are people of color. Most are in no position to risk losing their job or having their pay docked for stepping out of line.

Several anonymous big bank employees went into detail about how their employers incentivize sales:

An HSBC employee reported that when workers fell short of sales goals, the difference was taken out of their paychecks.

A teller at a major bank said she is expected to sell three new checking, savings, or debit card accounts every day. If she falls short, she gets written up.

Customer service representatives at one major bank’s call-center said everyone is expected to make at least 40 percent of the sales of the top seller. Credit card sales count for extra, encouraging callers to push credit cards on customers who would be better served with checking or savings accounts.

A call-center worker said she offers a credit card to every customer, regardless of whether it would be beneficial. She explained: “If you aren’t offering, you can get marked down — the managers and Quality Analysts listen to your call, and can tell if you aren’t offering.”

“We’re not servicing their needs,” said one front-line worker. “What they want, what they need, isn’t important to us. Selling them a product is … Some of our customers just have their savings, many are just retirees.”

As the report concludes, “Our nation’s big banks are committed to a model that jeopardizes our communities and prevents bank employees from having a voice in their workplace.”

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As the 2016 primary season ends and Bernie Sanders backers look beyond next month’s Democratic convention in Philadelphia, many who’ve “felt the Bern” have their eye on local politics.

Hundreds, if not thousands, will be heeding the call of Minnesota Congressman Keith Ellison, a Sanders’ endorser and convention delegate.

“We need people running for school boards,” Ellison told the New York Times in May. “We need people running for City Council. We need people running for state legislatures. We need people running for zoning boards, for park boards, to really take this sort of message that Bernie carried and carry it in their own local communities.”

Fortunately of those seeking relevant political advice, former Seattle City Councilor Nick Licata has just published Becoming A Citizen Activist: Stories, Strategies, & Advice For Changing Our World (Sasquatch Books, 2016). His book draws on several decades of experience as a progressive elected official and varied campus and community organizing work before that.

Like Sanders, Licata was a Sixties’ radical. He belonged to Students for a Democratic Society (SDS) at Bowling Green State University and learned retail politics, at the dormitory level, when he ran successfully for student government president.

Like some Sanders supporters who may become candidates in the near future, Licata had an unconventional resume when he first sought public office. He had lived in a well-known Seattle commune for twenty years and founded two alternative publishing ventures, the People’s Yellow Pages and the Seattle Sun. A Democrat with Green Party sympathies, he defeated a candidate who was backed by the mainstream media and out-spent him 2-to-1.

“In the previous 128 city council elections, only two candidates had won when both daily newspapers endorsed their opponent,” Licata reports, so “the odds didn’t look good.” Fortunately, his message that the city should invest more resources “in all neighborhoods and not concentrate them in just a few” resonated with an electoral coalition of “young renters” and “older home-owners.” Licata’s own track record of neighborhood activism gave him the necessary name recognition and grassroots street cred to win.

NIMBYism or More?

Becoming A Citizen Activist is full of useful tips about how activists and allied politicians can collaborate on issue-oriented campaigns. His book makes clear that “going local” is different from backing a presidential campaign focused on national and international questions. According to Licata, progressives must develop the ability to “see the small things that generate the big things.” By that, the author means linking voter concerns about global threats like climate change to concrete and achievable steps that city government can take to address local manifestations of the larger problem.

He describes how Seattle’s four years of skirmishing over plastic bag regulation originated in one neighborhood’s opposition to a new waste transfer station. What might have been just another exercise in NIMBYism evolved into a city-wide push for waste reduction, at its source, plus much greater recycling. A plastic bag fee, imposed by the city council, was overturned after a plastic bag industry-funded referendum campaign but the city’s ban on Styrofoam containers survived. In 2011, the city council passed a broad ban on single-use plastic bags, which the industry opted not to challenge either in court or at the polls.

Licata’s other examples of progressive policy initiatives include raising local labor standards, strengthening civilian oversight over the police, providing greater protection for undocumented immigrants, decriminalizing marijuana possession, and using cultural programs to foster a sense of community.

Several of his most interesting case studies reveal the tendency of legislators—even liberal-minded ones—to be overly timid and skeptical about policy initiatives that push the envelope. In 2011, for example, Licata tried to lower the expectations of constituents who met with him about a paid sick leave mandate opposed by local employers. “I cautioned that it was not likely that we’d see it anytime soon,” he admits in the book.

Yet, less than nine months later, he was “shown to be wrong.” Not only was there sufficient public support but “well organized advocacy groups” marshaled “a wealth of data to prove that the sky wouldn’t fall if paid sick leave passed.”

Several years later, when some Seattle fast food workers staged union-backed job actions to highlight their minimum wage demand, it was the same story:

“....Politicians like me were sympathetic but also felt that fifteen dollars was way too big a lift. In my own case, I thought there were more readily achievable goals—like fighting wage theft. I found myself initially offering cautious verbal support and not much more.”

What made Seattle’s “fight for fifteen” winnable was grassroots organizing by local labor organizations and left-wing activists, who were able to inject the issue into the 2013 mayoral race between incumbent Mike McGinn and his challenger, state senator Ed Murray. Shortly before the election, Murray endorsed a minimum wage hike to $15 an hour while McGinn insisted that Washington state should take action instead of the city.

Key Socialist Presence

That year, it also made a big difference to have an energetic and charismatic socialist candidate running for city council under the “Fight for Fifteen” banner. Kshama Sawant took on Richard Conlin, “a well-liked liberal politician” who cast the city council’s lone vote against paid sick leave and opposed raising the minimum wage without further study. According to Licata, Conlin, like McGinn, was defeated due to the votes of “many disaffected Democrats who wanted more aggressive council members willing to speak out on issues.”

Once elected, Sawant was quick to utilize what Licata calls “the unique means that public officials have to help mobilize the public.” Among these are holding public hearings, forming issue-oriented or constituency-based task forces and commissions, and backing ballot measures like the threatened popular referendum on “15 Now” that kept Mayor Murray and his allies from weakening minimum wage legislation more than they did in 2014.

Yet when Sawant—a generation younger than Licata—first ran against his longtime colleague, Richard Conlin, the council’s most left-leaning member didn’t support her. In Becoming a Citizen Activist, Licata now acknowledges Sawant’s unusual strengths as a radical politician, including her social media savvy, “dedicated following,” and ability to project “a message that resonated with the public.” Her tweets, blogging, and website use “helped her obtain 80 percent citywide name recognition after a year on the council, far surpassing all the other council members,” Licata reports.

According to the author, local pollsters surveying the relative popularity of city councilors prior to Seattle’s 2015 election found that Sawant’s “numbers were higher than all the others but mine, and I beat her by only one point.” These results might explain why Mayor Murray and the Seattle business community failed to unseat their Socialist Alternative critic when she ran for re-election last year, with Licata’s backing this time. (Licata himself chose to retire from the city council.)

New Forms of Organization

Readers interested in further detail about their over-lapping council careers will have to wait for American Socialist, a political memoir by Sawant (to be published by Verso next year) or Jonathan Rosenblum’s forthcoming book for Beacon Press about labor and politics in Seattle. Rosenblum worked on Sawant’s re-election campaign which, in his view, demonstrated “the indispensability of organization” and an “independent political base.”

Unlike Licata’s own more typical electoral efforts in the past, Sawant’s “campaign strategies and tactics were not directed by a single candidate or campaign manager.” Instead, Rosenblum points out, they were “developed through collective, thoughtful discussions” among Socialist Alternative members who live in Seattle and “are connected to a broader base of union and community activists.” (See http://www.alternet.org/activism/socialist-win-seattle-anomaly-or-harbinger)

One limitation of Licata’s book is the absence of any discussion about fielding slates of progressive candidates who are committed to a common platform that includes rejection of corporate contributions. To his credit, Licata did play a major role in creating the multi-city network of progressive elected officials known as Local Progress. In the Bay Area, this group includes Richmond, CA. city councilor (and former mayor) Gayle McLaughlin, whose Richmond Progressive Alliance only runs candidates who spurn business donations.

Nationally, about 400 mayors, city councilors, county supervisors, and school board members use Local Progress as a “think tank” and clearing house for alternative public policies. Assisted by the Center for Popular Democracy in New York, the group distributes a 60-page handbook for improving labor and environmental standards, housing and education programs, public safety, and municipal election practices. At annual conferences—like its national meeting in Pittsburgh on July 8-9—local victories of the sort Licata describes in his book are dissected and their lessons disseminated. (For details, see http://localprogress.org/)

Local Progress leaders believe that neither street politics nor electoral victories alone will make a sufficient dent in the status quo. As Licata told his fellow “electeds” when they met in New York two years ago, municipal government changes for the better only when progressives have “an outside and inside game...people on the inside and people protesting on the outside to provide insiders with backbone.” Licata’s new book provides many useful examples of that necessary synergy.

(Steve Early is a longtime labor activist and author of a forthcoming book about progressive politics in Richmond, California entitled Refinery Town: Big Oil, Big Money, and the Remaking of an American City (Beacon Press, 2017). A version of this review appeared originally in Working In These Times, He can be reached at Lsupport@aol.com)

By Steve Early

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For black communities in the United States, presidential election participation rates are strong and momentum is building.

In 2012, black voters showed up at the polls in the largest numbers (66.2 percent) and voted at a higher rate than non-Hispanic whites (64.1 percent) for the first time since rates were published by the U.S. Census Bureau in 1996.

Black Americans tend to vote Democratic in presidential elections. This was true by historic margins in President Barack Obama's 2008 and 2012 victories

- 95 and 93 percent, respectively. And their turnout rate in 2016 could be an important factor in deciding the next president of the United States, especially in a tight race.

That's good news for black community leaders who want to ensure their voices are heard and hold future leaders accountable.

The 2014 and 2015 cases of deadly police force against unarmed African-Americans have galvanized a tech-savvy generation of activists to inject new life in an age-old push for racial, economic and social equality.

More and more, movements such as Black Lives Matter are becoming international household names and are holding candidates accountable to specifically address and push for legislation on these issues.

One such organization, Black Alliance for Just Immigration (BAJI), engages and advocates on behalf of African-American and black immigrant communities on issues of racial justice and immigrant rights.

BAJI's policy and legal manager, Carl Lipscombe, says part of the greater push nationwide to organize and bring to light instances of police brutality results from what he describes as a community-wide fear of "being killed when walking to the corner." He says these police cases are enhanced by the advent of social media and by the ability to capture events on camera that wasn't possible in the 1980s.

Lipscombe says candidates must do more than "throw a bone" if they expect communities of color to go to the polls in droves.

"It's not enough to just say we want free education for everyone," Lipscombe said. "We want to know how this is going to impact black people."

According to the U.S. Bureau of Labor Statistics, the unemployment rate among blacks in the United States, at 9.4 percent, remains significantly higher

- nearly double

- than the overall rate of 5 percent nationwide.

Black wealth also has declined. The non-partisan Economic Policy Institute, in coordination with the liberal research institution Center for Popular Democracy, reports that black workers' wages have fallen by 44 cents on the hour in the past 15 years, while wages of both Hispanic and white workers have increased by approximately the same amount.

The Migration Policy Institute reports that black immigrants from Africa are better educated than the overall U.S. population, age 25 and older.

In 2007, 38 percent held a four-year degree or more, compared to 27 percent of the U.S. population. Yet, black immigrants earn lower wages and hold the highest unemployment rate in comparison to other immigrant groups, according to the Center for American Progress.

Bakary Tandia, case manager and policy advocate at African Services Committee, a Harlem-based agency dedicated to assisting African immigrants, refugees and asylees, says progress is necessary across all levels of government.

"Even if you take the case of [New York City Mayor Bill] de Blasio," Tandia said, "he is a progressive mayor, but in his administration, I have not seen any African immigrant appointed or in a meaningful position, and the same thing goes at the state level, at the federal level."

Grass-roots coordinators say anti-immigration rhetoric among some presidential candidates has fueled electoral participation, as well as greater community leadership.

Steve McFarland, whose organizing efforts include get-out-the-vote campaigns among disenfranchised communities in New York, says the immigration reform movement, combined with the work of Black Lives Matter, has produced a new generation of civil rights leaders.

"It doesn't look the way that it used to look," McFarland said. "It's not big organizations, but they can mobilize people, they have a clear voice, and they are winning changes across the country."

Ahead of the 2016 presidential primaries, there is good news for Democratic frontrunner and former secretary of state Hillary Clinton. She currently enjoys an 80 percent favorability rating among adult blacks, the highest positive net rating of all candidates, according to a recent Gallup poll.

Clinton, who has met privately with Black Lives Matters activists, specifically addressed racial profiling in an October speech at Clark Atlanta University.

"Race still plays a significant role in determining who gets ahead in America and who gets left behind," Clinton said. "Racial profiling is wrong, demanding, doesn't keep us safe or help solve crimes. It's time to put that practice behind us."

Source: Hong Kong Herald

New York Times - February 21, 2015, by Steven Greenhouse - On the nights when she has just seven hours between shifts at a Taco Bell in Tampa, Fla., Shetara Brown drops off her three young children with her mother. After work, she catches a bus to her apartment, takes a shower to wash off the grease and sleeps three and a half hours before getting back on the bus to return to her job.

At Hudson County Community College in Jersey City, Ramsey Montanez struggles to stay alert on the mornings that he returns to his security guard station at 7 a.m., after wrapping up a 16-hour double shift at 11 p.m. the night before.

And on many Friday nights, Jeremy Little waits tables at a Perkins Restaurant & Bakery near Minneapolis and doesn’t climb into bed until 3 a.m. He returns by 10 a.m. for the breakfast rush, and sometimes feels so weary that he forgets to take rolls to some tables or to tell the chef whether customers wanted their steak medium rare.

“It makes me feel really tired,” Mr. Little said. “My body just aches.”

Employees are literally losing sleep as restaurants, retailers and many other businesses shrink the intervals between shifts and rely on smaller, leaner staffs to shave costs. These scheduling practices can take a toll on employees who have to squeeze commuting, family duties and sleep into fewer hours between shifts. The growing practice of the same workers closing the doors at night and returning to open them in the morning even has its own name: “clopening.”

“It’s very difficult for people to work these schedules, especially if they have other responsibilities,” said Susan J. Lambert, an expert on work-life issues and a professor of organizational theory at the University of Chicago. “This particular form of scheduling — not enough rest time between shifts — is particularly harmful.”

The United States decades ago moved away from the standard 9-to-5 job as the manufacturing economy gave way to one dominated by the service sector. And as businesses strive to serve consumers better by staying open late or round the clock, they are demanding more flexibility from employees in scheduling their hours, often assigning them to ever-changing shifts.

Workers and labor advocates are increasingly protesting these scheduling practices, which often include giving workers as little as two days’ advance notice for their weekly work schedule. These concerns have gained traction and translated into legislative proposals in several states, with proponents enviously pointing to the standard adopted for workers in the 28-nation European Union. It establishes “a minimum daily rest period of 11 consecutive hours per 24-hour period.”

Britain, Germany and several other countries interpret that to require that workers be given at least 11 hours between shifts, although waivers are permitted. “If a retail shop closes at midnight, the night-shift employees are not allowed to start before 11 o’clock the next morning,” said Gerhard Bosch, a sociology professor and expert on labor practices at the University of Duisburg-Essen in Germany.

Continue reading the main story

In the United States, no such national or state labor law or regulation governs the intervals between shifts, except for some particular jobs like airline pilots, although some unions have negotiated a minimum time for workers to be off, sometimes eight, 10 or 12 hours.

But at the state level this year, bills have been introduced in Maryland and Massachusetts and will be introduced in Minnesota on Monday, each of them calling on employers to give workers at least 11 hours between shifts and three weeks’ advance notice for schedules. Those proposals would require businesses to pay some time and a half whenever employees are called in before 11 hours have passed between shifts.

Paul Thissen, the Democratic leader of the Minnesota House of Representatives, supports the legislation. “When it comes to scheduling, the playing field is tilted very dramatically in favor of the employer,” Mr. Thissen said. “What we’re proposing is just trying to rebalance the playing field.”

Anthony Newby, executive director at Neighborhoods Organizing for Change, a Minneapolis-based group that advocates for worker rights, among other issues, said that clopenings have become a big issue in his region. “Clopenings are hurting many of our members; many are in the restaurant field and some in construction and nursing,” he said. “We worry it has an effect on safety — workers feel they’re on autopilot. It also has a big impact on families, on mothers trying to manage a family and arrange child care.”

Ms. Brown, who works as a cashier at Taco Bell, said her children — ages 5, 4 and 2 — don’t like it when she has just seven hours between shifts. That usually means they hardly see her for two nights in a row; they sleep at their grandmother’s both nights. On the second night, after just three and a half hours’ sleep the previous day, Ms. Brown says she stops by her mother’s for an hour or two to see her children, and then heads home to sleep.

“My kids say, ‘Mommy, I miss you,’ ” she said. “I get so tired it’s hard to function. I feel so exhausted. I don’t want my kids suffering not seeing me. I try to push to go see them.”

Although Ms. Brown dislikes clopenings, she doesn’t turn them down because she needs as many hours as she can get. She makes $8.10 an hour and works about 25 hours a week.

Brandon Wagner, who works for a Zara apparel store in Manhattan, often works from 1 p.m. until 10:30 p.m. or 11 p.m., getting back to his apartment in Brooklyn around midnight. He often must be back at work at 8 the next morning, and as a result he sleeps just five hours.

“When you question this, they give a shrug of the shoulder,” Mr. Wagner said. “They say, ‘Everybody does this. You have to put up with it or go somewhere else.’ ”

Last summer, Starbucks announced that it would curb clopenings on the same day that The New York Times published an article profiling a barista, Jannette Navarro, mother of a 4-year-old, who worked a scheduled shift that ended at 11 p.m. and began a new shift at 4 a.m.

Continue reading the main story

Continue reading the main story

At the time, Cliff Burrows, Starbucks’s group president for the United States, said: “Partners should never be required to work an opening and a closing shift back-to-back. District managers must help store managers problem-solve issues specific to individual stores to make this happen.” (“Partners” is the term Starbucks uses for its employees.)

Neil Trautwein, a vice president with the National Retail Federation, acknowledged that some instances of scheduling were egregious, but he pointed to Starbucks’s voluntary response to argue that states should not enact any laws to address the issue.

“Advocates have it wrong to think you can legislate and just outlaw the process,” Mr. Trautwein said. “The market adjusts to the needs of workers.” He added that what Starbucks did “demonstrates that businesses listen to their employees and adjust.” (In response to complaints about schedules changing week to week, Walmart said on Thursday that it would give workers more predictable schedules.)

But several people who identified themselves as Starbucks employees complained on a Facebook private group page that they still were scheduled for clopenings, despite the company’s pronouncement. One worker in Texas wrote on Jan. 30, “I work every other Sunday as a closer, which is at 10:30 or really 11-ish, then scheduled at 6 a.m. the next morning.” Another worker in Southern California wrote, “As a matter of fact I clopen this weekend.”

Laurel Harper, a Starbucks spokeswoman, questioned the authenticity of the Facebook posts. She said company officials had held conversations nationwide “to make sure we are giving our partners the hours they want” and to prevent clopenings.

Some managers say there are workers who don’t mind clopenings — like students who have classes Monday through Friday and want to cram in a lot of weekend work hours to maximize their pay.

Tightly scheduled shifts seem to have become more common for a number of reasons. Many fast-food restaurants and other service businesses have high employee turnover, and as a result they are often left with only a few trusted workers who have the authority and experience to close at night and open in the morning. Professor Lambert said no studies had been done on the prevalence of clopenings nationwide.

Carrie Gleason, director of the fair workweek initiative at the Center for Popular Democracy, a liberal advocacy group, said one reason for the increasing prevalence of clopenings was that many companies had shifted scheduling responsibilities away from managers and to sophisticated software that she said was not programmed to prevent such short windows between shifts.

But David Ossip, chief executive of Ceridian, a human resources and payroll company, said that when his company provided scheduling software to companies, it generally recommended programming a mandated rest period. The software would then warn managers when an added shift violated that rest period.

“You would make sure you have a minimum rest period between shifts,” he said. “We would set up fairness results that call for regular working hours — not one day work at night, the next day work in the morning.” He added, “You have to be home for eight, 10 or 12 hours.”

Andy Iversen, a stocker at Linden Hills Co-op in Minneapolis, said the grocery store’s managers used to schedule him two or three times a week to work until 9 p.m., and then be back at 5 a.m.

“I was beyond exhausted,” he said, noting that he was getting to bed at midnight and waking around 3:45 a.m. At the time, he was pursuing a master’s degree and taking a course in neuroscience. “I couldn’t concentrate because I was so tired,” he said. “I had to drop out of class.”

Mr. Iversen praised his store’s managers for no longer giving him clopenings. Marshall Wright, the store’s produce manager, said, “We think it’s the right thing to do. We don’t feel people should work shifts like that.”

Mr. Iversen couldn’t agree more: “It doesn’t take that much empathy or reasoning to see that clopenings stink, and people don’t want to do it.”

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