Advocates Rally to Eliminate ‘Sub-Minimum Wage'
Brooklyn Daily Eagle - October 23, 2014, by Matthew Taub - Hundreds of tipped and low-wage workers and advocates, including fast food, car wash and other low-wage workers, rallied...
Brooklyn Daily Eagle - October 23, 2014, by Matthew Taub - Hundreds of tipped and low-wage workers and advocates, including fast food, car wash and other low-wage workers, rallied outside a Domino’s Pizza location in Harlem before marching to the second public hearing of Gov. Andrew Cuomo’s Wage Board, where they testified and called on the Wage Board to eliminate the sub-minimum wage for the 229,000 tipped workers in New York state.
“In an increasingly unaffordable city, tipped workers remain among the lowest-paid hourly workers,” said New York City Public Advocate Letitia James, who joined the workers at the rally and wage board hearing. “An hourly wage of $5 an hour is simply not sustainable for an individual or a family. Now is the time to ensure that low-wage workers receive a fair and sustainable income. I join the many voices today calling on Gov. Cuomo to help bring fair wages to these industries.”
Employers in New York are allowed to pay less than the minimum wage — just $5 an hour — to restaurant servers, delivery workers and other service workers. Employers are legally required to “top off” a tipped worker’s pay when it falls short of the regular minimum wage, but lax enforcement enables employers to routinely violate minimum wage, overtime and other wage and hour laws with minimal repercussion.
“We work very hard and deserve a raise, just like other minimum wage workers in this state,” said Juana Tenesaca, a tipped worker and member of Make the Road New York. “I have worked as a waitress for years, earning the tipped minimum wage, and it’s impossible to raise my children never knowing how much money I’ll bring home at the end of the day. My daughter had to get a job while she was still in high school to help support our family and that breaks my heart.”
A July report by the National Employment Law Project finds that eliminating the sub-minimum wage would benefit an estimated 229,000 tipped workers in New York.
“Tipped workers are employed in industries like hospitality that are among the fastest growing in today’s economy,” said Tsedeye Gebreselassie, senior staff attorney at the National Employment Law Project. “If we want to stimulate consumer spending and boost our local economies, we need to make sure that the growing number of New Yorkers relying on these jobs actually have money to spend on basic necessities at their neighborhood stores.”
“Having to live entirely off tips means the customer is always right, which means I’ve had to put up with unwanted advances and uncomfortable situations from guests,” said Ashley Ogogor, a tipped worker and member of Restaurant Opportunities Center-United. “The guest shouldn’t have to feel pressured at the end of the night to pay me a decent wage. If seven other states can require restaurant owners to pay their employees a full minimum wage, so can New York.”
As part of last year’s legislative deal to increase New York’s minimum wage to $9 an hour by Dec. 31, 2015, the sub-minimum wage for tipped workers was set to automatically rise in proportion to the full minimum wage whenever the latter is raised with one exception: workers in the hospitality industry. The final deal froze these workers’ wages at $5 an hour and instructed Gov. Cuomo’s Department of Labor to convene a “wage board” to determine whether these workers will get a raise, and if so, by how much.
“We call on Gov. Cuomo and the wage board to do whatever it takes to lift up working families in the Empire State,” said Tony Perlstein, campaigns co-director for the Center for Popular Democracy. “Wealthy restaurant employers shouldn’t receive special treatment that allows them to pay poverty wages to working New Yorkers, including the women who make up more than two-thirds of the tipped wage workforce. Seven states have already eliminated their sub-minimum wages, and more are seriously considering it. Their restaurant sectors are not suffering for it, and in fact are thriving.”
The wage board, consisting of Timothy Grippen, Retired Broome county executive; Heather C. Briccetti, president and CEO of the Business Council; and Peter Ward, president of the New York Hotel Trade Council, heard hours of testimony detailing how New York’s tipped subminimum wage fuels unstable paychecks and poverty for thousands of workers, particularly women, across the state.
“People want to work hard at a place where they feel valued,” said Amado Rosa, a tipped worker at a Thai restaurant and a member of Make the Road New York. “Being paid $4 or $5 an hour does not make a worker feel validated and does not generate enough income to support a single person or a family. I have faced many hardships over the years, and my anxiety stemmed from not knowing what my take-home pay would be in a given week.”
The poverty rate among New York’s tipped workers is more than double that of the regular workforce. Seven states across the country have adopted policies requiring employers to pay tipped workers the full minimum wage and have shown that eliminating the sub-minimum wage reduces poverty without slowing job growth. In fact, according to projections by the National Restaurant Association in their 2014 Industry Forecast, all of the states that require employers to directly pay the full minimum wage to tipped workers are expected to have greater restaurant job growth than New York in the next decade — in most cases, much greater. Tipped workers are already being paid $9 or more in California, Washington and Oregon, and will soon be getting raises to over $9 in Minnesota, Hawaii and Alaska.
“More than 3 million New Yorkers work low-wage jobs, and they need our state government officials on their side,” said Michael Kink of the Strong Economy for All Coalition. “New York needs a one-two punch for good jobs: a big increase in the minimum wage, and elimination of the second-class sub-minimum wage for tipped workers. This combination could boost the paychecks of millions of workers and help revive the New York economy from the ground up — the Wage Board should take direct action to provide one fair wage to a quarter-million tipped workers to get us moving now.”
Advocates who testified at today’s hearing are members of Raise Up NY, fighting for #1FairWage, a coalition comprised of tipped workers, the National Employment Law Project, Make the Road New York, the Center for Popular Democracy, Fast Food Forward, New York Labor-Religion Coalition, New York Communities for Change, ROC-NY, ROC-NY affiliate of Restaurant Opportunities Centers (ROC) United, Strong for All, United New York, Citizen Action New York, Tompkins County Workers Center, Worker Center of Central New York, Metro Justice, Coalition for Economic Justice, Alliance of Communities Transforming Syracuse (ACTS) and other community groups and advocates around New York State calling for the elimination of New York’s sub-minimum wage for tipped workers.
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Ana María Archila: Low Wage Workers are Paving the Way to Democracy
GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City and actively pursued low-wage voters. Now that he is Mayor, what can the...
GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City and actively pursued low-wage voters. Now that he is Mayor, what can the people who elected him do to influence what happens next? It is a question grassroots groups grapple with around the country. On GRITtv this week, Ana María Archila shares a few ideas. Archila was a founder of one of the most effective community groups in New York; now she's heading up a regional initiative that seeks to build popular democracy, not only at the ballot box, but in between elections.
From the school to prison pipeline and stop and frisk to immigration reform and workplace safety regulations, New Yorkers are eager to seize the moment for political change, says Archila. For evidence, consider the crowds that gathered at the Talking Transition Tent which was set up in downtown, immediately following last fall's elections.
Mayor Bill de Blasio seems to be listening. Less than two months into his term he has expanded paid sick leave for hundreds of workers around the city, one of the central demands of low wage workers. But how do people ensure that this momentum continues?
"He is only listening because low wage workers are extremely organized," Co-Executive Director for the Center for Popular Democracy Ana María Archila tells GRITtv. "New Yorkers are demanding more."
In addition to paid sick leave, organizers with Make the Road New York (the community organization that Archila describes as her "organizing home") are campaigning for a raise in the minimum wage and increased work place safety regulations. Organizing locally and creating small scale initiatives, like worker or consumer co-ops, can help engage people and address some immediate needs, but ultimately, low wage Americans need to build political power.
"The biggest co-operative we have is our own government and we need to make sure that it works for us," she says.
For more on ushering in a new progressive era, watch our interview with Joo-Hyun Kang on ending the Stop and Frisk regime.
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The issue Democrats need to address in the debate
In just two years, more than 13 million workers have received a raise, most notably in Los Angeles, Chicago, Seattle, Massachusetts and just last month in New York, where wages for fast-food...
In just two years, more than 13 million workers have received a raise, most notably in Los Angeles, Chicago, Seattle, Massachusetts and just last month in New York, where wages for fast-food workers were raised.
Work strikes and broad-based mass mobilizations are inspiring and filling a much-needed void. This worker-led movement is stepping in where the federal government has failed.
Nearly 50 percent of workers earn less than $15 an hour and 43 million are forced to work or place their job at risk when sick or faced with a critical care giving need. When Hillary Clinton, Bernie Sanders, Jim Webb, Martin O'Malley, and Lincoln Chafee take the stage in Las Vegas on Tuesday night for the first Democratic presidential debate of the 2016 election, will they be addressing this powerful and significant constituency?
Will they provide relief for working families by presenting real policy solutions that go to the core of what it means to thrive? Or will they trade sallies and barbs in a bid to prevail in a popularity contest, overshadowing the experience of millions of working families in America?
Democratic contenders are likely to lament the fate of a declining middle class squeezed by the rapacious appetites of the 1 percent. This is important, but the candidates will also need to focus on ensuring that the middle class grows through a fair minimum wage, and struggling American workers, many of whom are women and people of color, can take paid sick time off without being penalized.
Not in recent decades have we seen such a vibrant backdrop of resistance and organizing around wages and workers' rights in this country, and Democratic candidates must not squander this golden opportunity to raise awareness around these issues and set an agenda that goes to the heart of what Americans need.
And the workers have been heard: a $15 minimum wage has been passed in the nation's largest cities. In addition, laws raising the minimum wage to more than the federal standard of $7.25 an hour have passed in a number of states and cities. There are now campaigns to raise the floor and standards for workers are being led in 14 states and four cities.
We've seen how lives can change when workers are paid a salary allowing them to make ends meet. Unable to adequately provide for her family on $9 an hour, health-care worker and single mother Sandra Arzu is one of the workers who fought fora $15 minimum wage in Los Angeles. The raise will fundamentally change her life and ability to put food on the table for her family and pay the rent.
Higher wages are vital to improving the lives of low-wage workers but it's not a cure-all. It's also important for low-wage workers to have access to paid sick days to take care of themselves and their families without fear of retribution. A Center for Popular Democracy report published earlier this month reveals 40 percent of surveyed Starbucksworkers reported facing barriers to taking sick days when they were ill.
The candidates need to address in a real way what workers must manage daily. Like a Starbucks barista from Washington State who describes coming to work sick out of fear she would lose her job if she took the day off. She says she rested on cardboard spread out on the floor so she could step in when there was heavy foot traffic in the store.
The federal government has an opportunity to dignify the lives of all workers in this country and address persistent inequality by enacting nationwide policies raising the minimum wage and enforcing paid sick leave. Millions of workers have issued a clarion call to the Democratic candidates and it's now their turn to respond with aggressive policy solutions to address the divide in this country.
We will be watching closely on Tuesday night to see if the candidates have heard the call from this key Democratic constituency — a constituency the Democratic party can't afford to lose.
Source: CNBC
Time for a Moratorium on Charter Schools
Al Jazeera America - April 14, 2015, by Amy Dean - Charter schools are everywhere. Not long ago, these publicly funded but privately run institutions were a relative rarity. Those that existed...
Al Jazeera America - April 14, 2015, by Amy Dean - Charter schools are everywhere. Not long ago, these publicly funded but privately run institutions were a relative rarity. Those that existed served mostly as experimental academies whose successful lessons could be applied elsewhere in their host school districts. But in the last 15 years, swaths of the U.S. public education system have been turned over to charters. In fact, they are being used as a means to crush teachers’ unions and to pursue high-stakes testing.
Charter advocates justify this ascent by promising an antidote to the disappointing outcomes of traditional public schools in segregated and underfunded urban districts. But the research is in: Charter schools have failed to deliver on their promises.
It is time lawmakers freeze their growth and consider how to provide the best education possible for all students.
Underwhelming performance
There are recent precedents for a moratorium on charter schools. Philadelphia, which issued dozens of charter licenses before 2008, did not allow any new ones from 2008 to 2015. The Chicago School District declared a freeze on charters for the 2015–16 school year. Connecticut and Delaware are considering similar actions. Other school boards and states should follow suit.
As a bevy of recent studies prove, charter schools are not substantially outperforming neighborhood public schools. In Arizona, for example, “on average, charter schools in Arizona do no better, and sometimes worse, than the traditional public schools” according to a study by the Brookings Institution. A similar study in Ohio showed that public schools were producing better results than their charter peers in most parts of the state. In Illinois the Institute on Metropolitan Opportunity found that Chicago’s charter schools are “less likely to be racially or ethnically diverse” than and “consistently underperform” their public school peers.
That charter schools are not doing better than traditional public schools is particularly disturbing, since they have a host of advantages. Notably, many charters cherry-pick their students. A 2013 study by Reuters found that charter schools employ complicated screening mechanisms to admit only students who are most likely to succeed. This ensures that students from deeply impoverished families or households where English is not spoken at home are less likely to gain admission. These methods include using English-only documents, demanding proof of citizenship (which is illegal) and narrowing application windows to a few hours.
Charters also regulate the composition of their student bodies through expulsions. In 2014 the Chicago School District reported that public schools expelled 182 students out of 353,000. By contrast, charter schools booted 307 students out of 50,000. The expelled students end up back in the public schools, which become the institution of last resort. Charter schools should in theory register superior test scores, since they are not serving some of the highest-need students. Yet that has not been the case on the whole.
Charters have fallen short in terms of transparency and accountability too. A 2010 review from the Philadelphia controller’s office found that the city’s charter schools had little oversight from the understaffed and underfunded school district. Numerous charter operators have been charged with corruption and misuse of funds.
A national moratorium on charter schools would stop the hemorrhaging of funds from traditional public schools.
A 2014 report by two anti-education-privatization organizations, the Center for Popular Democracy and Integrity in Education, found $136 million in fraud and abuse in 15 states. A follow-up study (PDF) in Pennsylvania revealed “charter school officials have defrauded at least $30 million intended for Pennsylvania schoolchildren since 1997.” Some of the questionable dealings may not be illegal because of the intricacies of state laws, but there is little doubt that public money is being wasted.
A recent review of charter school scandals in Florida and Michigan by The Washington Post listed numerous cases of real estate flipping, in which charter schools were used as vehicles for exorbitant profits. Michigan’s largest charter operator, National Heritage Academies gets a 16 percent return on its investment in rent from the state — nearly twice what most commercial properties receive.
A nationwide moratorium
Chicago and Philadelphia provide good examples for setting moratoriums on charter schools, but the freeze has been limited in both cities. Philadelphia’s School Reform Commission did not approve a new charter school in the last seven years. But the number of students enrolled at the existing charters continued to grow, doubling from 2007 to 2015. This year the commission approved five new charters — a regrettable reversal of the moratorium.
Chicago Mayor Rahm Emanuel has declared that no new charter schools will be funded during the 2015–16 year. However, there is good reason to believe that he is simply playing politics and that he will not extend the moratorium. He faced a tough re-election battle, and the temporary halt was seen as an attempt to lure supporters of public education back into his camp. His poll numbers plunged in 2013 when he closed 50 neighborhood public schools, mostly in black and Hispanic neighborhoods that turned out for him in the 2011 election. His attempts to use the moratorium to appeal to disaffected voters shows that black and Latino parents, whom advocates of the charter industry insist want more charter schools, are hardly as enamored with charters as previously thought.
Nationwide, the expansion of charter schools continues unabated. Charter advocates report that 500 new charter schools opened during the 2014–15 school year, enrolling 348,000 students. One in 20 American students is enrolled in a charter school.
It is time for this to stop.
Charter advocates claim that they are data-driven technicians who pay attention to evidence of what works. But research does not support their preferred education policies. A national moratorium on charter schools would stop the hemorrhaging of funds from traditional public schools. It would also allow time to address the corruption that has plagued the charter industry. This would create an opportunity for some reflection on what actually works best for educating our children.
Amy B. Dean is a fellow of the Century Foundation and a principal of ABD Ventures, a consulting firm that works to develop innovative strategies for organizations devoted to social change. She is a co-author, with David Reynolds, of “A New New Deal: How Regional Activism Will Reshape the American Labor Movement.”
The views expressed in this article are the author's own and do not necessarily reflect Al Jazeera America's editorial policy.
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Poor Immigrants Get Free Legal Defense in New York City Program
NBC News - June 25, 2014, by Kat Aaron and Seth Freed Wessler - Leroy Samuels walked into the Varick Street immigration court in lower Manhattan, his wrists handcuffed and attached to a chain...
NBC News - June 25, 2014, by Kat Aaron and Seth Freed Wessler - Leroy Samuels walked into the Varick Street immigration court in lower Manhattan, his wrists handcuffed and attached to a chain around his waist. “My heart is beating,” Samuels’ older sister Anneisha said from a courtroom bench as her father beside her, his head in his hands to hide tears. Samuels, dressed in an orange jumpsuit, nodded at his family and lowered his eyes.
Three days earlier, the 24-year-old had been in a New Jersey detention center preparing to appear at his first hearing alone. Immigrants facing deportation, like Samuels, aren’t eligible for court-appointed attorneys. And like most immigrants in his position, he couldn’t afford one on his own
“I found some lawyers online, but they asked for $4,000,” Anneisha said. “I just hung up.”
Without legal defense, Samuels was sure he’d be deported to Jamaica, the country where he was born but has not been for nearly 15 years since his father brought him to the U.S.
But Samuels arrived in court that December morning with an attorney anyway. He is one of 190 people facing deportation from New York City who have been provided a free lawyer through the Family Unity Program, a city council-funded pilot initiative that provides for two public defenders’ offices to hire lawyers to represent poor immigrants in detention. It's the first program of its kind in the country. Now city lawmakers are poised to expand it almost ten-fold, making New York City the first municipality to provide legal defense to all detained indigent residents facing deportation.
“Justice shouldn't depend on the income level of anyone,” says Judge Robert Katzmann, Chief Judge of the U.S. Court of Appeals for the Second Circuit, who convened a multi-year study group from which the pilot emerged. “I think that the project will create momentum for greater support for providing counsel for people facing deportation.”
A number of other cities, including Boston and Chicago, are exploring similar programs. And this year, Alameda County, California, which includes the cities of Oakland, Fremont and Berkeley, started a program that approaches New York’s.
“This is part of a trend,” says Raha Jorjani, the immigration attorney hired by Alameda County. “Public defenders are saying that until Congress acts to provide legal defense for immigrants in deportation proceedings, we at the county level have to do our part to mitigate harm to clients.
In recent years, more immigrants have found themselves in court as the U.S. government has deported and detained nearly 400,000 each year. Though not all people facing deportation are detained, those who get locked up, either because they were previously charged with a crime or entered the country without papers, are less likely to have an attorney to represent them and more likely to be deported. The two biggest factors in successfully resolving a case are having a lawyer and being free during the trial, according to a report by Katzmann’s group.
Preliminary data on the New York City pilot, which comes to a close on June 30th, shows that of 190 detainees, almost half have been released or have a legal case to argue for release. Some may still be deported but can now fight from outside prison.
Providing these immigrants with legal defense, Katzmann says, creates both fairness and efficiency, saving county and federal governments money they’d otherwise spend locking people up. “It's a benefit to the judge, it’s a benefit to the government and to the non-citizen. It's really an example of how the government process can be made better.”
For Samuels, the road to immigration court started with legal trouble in 2010. He’d been without a place to stay and was sleeping on a friend’s couch. The friend, Samuels says, asked him to hold onto a package of drugs. Samuels says police officers arrived at the apartment and arrested him. He pleaded guilty and was convicted of criminal possession of a controlled substance and sentenced to time-served, six days in jail.
Samuels and his family say he quickly straightened his life. He found a steady job at a pharmacy, stopped hanging with friends who sold drugs and made sure to see his son, who lived with his ex-girlfriend, at least twice a week. A year passed and then two. He thought the criminal case was behind him.
Then at around 8:30 one morning last December, as he walked home to his Brooklyn apartment after working the night shift, he was stopped on the street and arrested by federal immigration agents. He was placed in detention in New Jersey, facing deportation. Immigration attorneys say it’s not uncommon for officials to detain immigrants long after an arrest.
“I never really thought about being deported,” Samuels said this winter from behind glass in the visitation room at the Hudson County, New Jersey, detention center. “I had a good job. I had visits with my son. I was on my way,” Samuels said. He’d hoped to enroll in culinary school, but from detention, he saw his plans evaporating. And his live-in girlfriend was pregnant and due in May. “What if I’m not there?” he said.
“The first time that I visited my brother at Hudson,” Anneisha Samuels says, “I didn’t know what to do. It’s not like when people are arrested, regular arrested, and they get a lawyer.”
Anneisha had recently lost her job as a home health aide. Their father was between jobs, too.
The next day, Anneisha received a call from Talia Peleg of Brooklyn Defenders Services, one of three attorneys from her office working on the immigrant defense pilot program. (The Bronx Defenders office employs three others.) Peleg bore good news: She would represent Leroy in court free of charge.
“An attorney knows how to talk the talk and walk the walk,” Peleg explained recently. “And to translate these complex immigration issues into a narrative that makes sense to the court,” without a lawyer, “I don’t know if that would be possible.”
The program attorneys say their representation by no means guarantees that their clients will stay in the U.S. For people with many criminal convictions, there’s no viable legal argument to stay. Many of these people are subject to what's known as mandatory detention. For them, fighting to remain in America can mean months or even years in detention while their case winds through the system. Some opt to leave.
Diego Garcia, originally from Guerrero, Mexico, picked up several misdemeanor and disorderly conduct charges in New York. He was fired from a catering job and was drinking heavily.
Eventually, those arrests led to deportation proceedings. He landed in the Hudson County detention center, and then at the Varick Street Immigration Court, where he, too, met Peleg. He was so eager to get out of prison that he told her he just wanted to be deported, but she encouraged him to sit through a 35-minute intake questionnaire to see what his options might be.
It turned out Garcia was eligible for a U visa, a special visa for victims of crime–in his case, witness tampering. The catering company he’d worked for had paid him and others far less than minimum wage, according to the Department of Labor. Garcia’s lawyers say his employer then pressured him to lie to federal investigators who were at the time looking into workplace violations.
Garcia was thrilled to hear there was a possible path to staying in America.
Peleg explained that the visa—if it came through—would take months, and he'd have to stay at Hudson while they fought. Rather than wait in jail, Garcia accepted the removal order, and went back to Mexico. “I wanted to be free,” he said recently by phone from Mexico City, “and fight from there.”
“It's very hard to be incarcerated, waiting,” Garcia said “When you're there, you feel confused, fearful.”
Peleg and Garcia are in regular contact as she pursues his U visa. And he has some money to help him get through the wait. When Peleg contacted the Department of Labor, which had repeatedly fined the catering company, officials said they had more than $3,000 in back wages for Garcia.
According to New York City Councilwoman Julissa Ferreras, who represents several heavily immigrant communities in Queens, before the pilot project, she heard from families who spent thousands of dollars on immigration lawyers. “Often times it was money that these families didn't have,” she said. But no one was beating down her door demanding publicly-funded lawyers, she said. “My constituency didn't even know that that's what they needed to cry out for.”
Now, that’s changed. The families she talks to are getting help from attorneys whose sole focus is on immigration defense. “We're raising the level of justice,” Ferreras said.
The final draft of the budget, released by the city council Tuesday night, allocates $4.9 million to expand the program. Now, all poor New Yorkers facing deportation, both at Varick Street and nearby immigration courts in New Jersey, will be appointed an attorney.
Ultimately, the goal of the project’s advocates is to provide counsel for all migrants facing deportation in New York State, which would cost $7.4 million, said Peter Markowitz, who runs the immigration legal clinic at Cardozo School of Law, which has helped lead advocacy for the pilot program.
That price tag would be offset by savings for the state, which would spend less on health care and foster care for children whose parents are deported, according to a study by the Center for Popular Democracy, another group supporting the program. The private sector would benefit, too; New York State employers now lose an estimated $9.1 million dollars in turnover costs to replace detained and deported workers, the study found.
Nationally, it would cost just over $200 million to give a lawyer to every indigent immigrant facing deportation, according to one recent study. The federal government would save close to $175 million in detention costs, the study found.
In April, Leroy Samuels appeared in in the Varick Street court again. He walked through the doors in cuffs, and his sister and father sat in the same spot. His attorney had already made a deal with the federal government’s lawyer: Samuels would be granted release. After a short hearing, the judge warned Leroy not to get into any more trouble, and then told the now-25-year old that he could leave. In the courthouse cafeteria Samuels embraced his father and sister and thanked his attorneys.
Samuels’ return has been difficult. He says that he hasn’t been able to get his job back—his former boss told him the company isn’t hiring.
But weeks ago, his girlfriend gave birth to their son. The day he was released, Samuels said, “I feel like I got a fresh start because of these lawyers.”
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Wells Fargo: California Leader in Predatory Lending and Heartless Foreclosures
San Diego Free Press - March 13, 2012, by Alliance of Californians for Community Empowerment - When it comes to foreclosing on Californians, it looks like Wells Fargo may take the prize. According...
San Diego Free Press - March 13, 2012, by Alliance of Californians for Community Empowerment - When it comes to foreclosing on Californians, it looks like Wells Fargo may take the prize. According to a report released today, Wells Fargo is responsible for more homes in the foreclosure pipeline in California than any other single lender.
Wells Fargo is servicing the most loans, but they are providing less principal reduction to struggling borrowers than either Bank of America and Chase – who themselves should be doing more! The recent report from the Monitor of the multi-state Attorneys General settlement with the five big mortgage servicers showed that Wells Fargo trails behind Bank of America and Chase when it comes to the amount of principal reduction given as part of first lien loan modifications.
This is the very same Wells Fargo that just had its most profitable year ever in 2012, with earnings of $19 billion.
The report, California in Crisis: How Wells Fargo’s Foreclosure Pipeline Is Damaging Local Communities, by ACCE (Alliance of Californians for Community Empowerment), the Center for Popular Democracy and the Home Defenders League, shows the harm coming to homeowners, communities and the economy unless Wells Fargo reverses its course and averts some or all of the impending foreclosures.
Click here to download the report.
The report uses data from Foreclosure Radar to look at loans currently in the foreclosure pipeline in California – meaning loans that have a Notice of Default or Notice of Trustee Sale. Of the 65,466 loans in the foreclosure pipeline, close to 20% of them are serviced by Wells Fargo.
If Wells Fargo’s 11,616 distressed loans go through foreclosure, California will take a next $3.3 billion hit: Each home will lose approximately 22 percent of its value, for a total loss of approximately $1.07 billion; homes in the surrounding neighborhood will lose value as well, for an additional loss of about $2.2 billion; and government tax revenues will be cut by $20 million, as a result of the depreciation.
And not surprisingly, African American and Latino communities will be particularly hard-hit. The report includes maps for seven major cities showing minority density and dots for each of Wells Fargo’s distressed loans. In city after city, they are heavily clustered in neighborhoods with high African American and Latino populations.
“My community has been absolutely devastated by the foreclosure crisis, and I put a lot of the blame at the doorstep of Wells Fargo,” says ACCE Home Defenders League member Vivian Richardson. “Wells Fargo’s heartless and unfair foreclosure practices are sending far more homes into foreclosure than is necessary.”
San Francisco Supervisor David Campos released a statement of support: “Our communities and our entire State are still reeling from the housing crisis, and will be for years to come. As this report shows, the numbers of homes still facing foreclosure is enormous. Principal reduction is clearly a critical strategy for saving homes and stabilizing the economy. Wells Fargo and the other major banks should be doing more of it.”
The report recommends:
Wells Fargo should commit to a broad principal reduction program.This means that every homeowner facing hardship should be offered a loan modification, when Wells has the legal authority to do so. The modification should be based on an affordable debt-to-income ratio, achieved through a waterfall that prioritizes principal reduction and interest rate reductions. Junior liens must also be modified.
Wells Fargo should report data on its principal reduction, short sales, and foreclosures by race, income, and zip code.Wells Fargo must be more transparent about its mortgage practices. The bank has an egregious history of harming California’s African American and Latino communities through predatory and discriminatory lending. To show the public that it has reformed, Wells Fargo must make this data available. The people of California need to know that Well Fargo is no longer discriminating against people of color and is fairly and equitably providing relief to homeowners and to the hardest hit communities.
Wells Fargo should immediately stop all foreclosures until the first two demands are met.In the event that it takes a few months to set up a fully functioning principal reduction program, Wells Fargo needs to immediately stop all foreclosures. Wells Fargo has done enough harm. It’s time to stop. California deserves a break.
ACCE is waging a campaign to push Wells Fargo to be a leader in California, their home state, in saving homes – beginning with their performance to comply with the Attorneys General Settlement and with the Homeowner Bill of Rights, but not ending there.
Click here to sign on to a letter to Wells Fargo CEO John Stumpf to support to campaign demands.
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Statement on Dallas Fed Announcement
“At a time when the Federal Reserve is starved for new, more well-rounded thinking, it is troubling that its opaque, secretive process for selecting its leadership could only yield a candidate cut...
“At a time when the Federal Reserve is starved for new, more well-rounded thinking, it is troubling that its opaque, secretive process for selecting its leadership could only yield a candidate cut from the same cloth as so many previous appointments: Wall Street and the highest echelons of corporate America. This was an opportunity for the Fed – especially the traditionally inaccessible Dallas Fed – to embrace a more transparent processes and to choose a president who can bring a new, more inclusive perspective that can foster a real recovery for communities in Dallas and beyond. Instead, the Dallas Fed selected a veteran of Goldman Sachs who is currently a director at the headhunting firm that was hired to fill this position. Neither the process nor the result serves the public interest. The Fed should do much better.
“The process in Dallas has been especially worrying from the beginning. Outgoing President Richard Fisher convened a committee of former Fed presidents to advise on the selection process, in possible contravention of Dodd-Frank. There were reports of candidates being subjected to ideological litmus tests. The Dallas Fed shut out the Fed Up coalition – made up of community, labor, and consumer organizations – since December and refused to even acknowledge our simple requests for basic transparency, even as the Dallas Fed presidency remained vacant for the past 5 months.
“The self-dealing is reminiscent of the similarly opaque process in Philadelphia: Patrick Harker was a member of the very search committee that selected him as the next President of the Philadelphia Federal Reserve. The revolving door in the Federal Reserve continues to spin, with Richard Fisher leaving the Dallas Fed to work at Barclay’s Bank (which pleaded guilty to serious financial crimes), and a Goldman Sachs banker coming in.
“In the meantime, the people of Texas are still struggling with stagnant wages and enormous racial disparities. And the Fed still seems primed to intentionally slow down the economy later this year. With multi-millionaire Wall Street bankers in its highest leadership positions, how could the American people expect anything else?”
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
"You can save my life - remember this conversation": Father with ALS confronts Senator Jeff Flake on flight from DC to Arizona over tax bill*
"You can save my life - remember this conversation": Father with ALS confronts Senator Jeff Flake on flight from DC to Arizona over tax bill*
A terminally-ill father suffering Lou Gehrig's disease shared his personal story with Sen. Jeff Flake with the ambition to make an influence on his stance of the GOP tax reform bill.
Ady...
A terminally-ill father suffering Lou Gehrig's disease shared his personal story with Sen. Jeff Flake with the ambition to make an influence on his stance of the GOP tax reform bill.
Ady Barkan, 33, approached the Republican lawmaker during his flight home from Washington D.C. - where the ill Barkan had spent days protesting the bill.
Read the full article here.
Jeff Flake Explains Why He Called for a Delay on the Kavanaugh Vote
Jeff Flake Explains Why He Called for a Delay on the Kavanaugh Vote
As for Ana Maria Archila and Maria Gallagher, the women who confronted him in the elevator, Flake said their intervention was “poignant,” but that he believed “some of their concern was how...
As for Ana Maria Archila and Maria Gallagher, the women who confronted him in the elevator, Flake said their intervention was “poignant,” but that he believed “some of their concern was how Kavanaugh would rule on the court. They may have been there prior to the allegations against him because of his position on some issues.”
Read the full article here.
IDNYC: Fuente de Dignidad para Miles
El Diario - January 30, 2015, by Ana Maria Archila - Se puede palpar la emoción este mes en las comunidades inmigrantes pues los neoyorquinos, incluidos miles de inmigrantes indocumentados...
El Diario - January 30, 2015, by Ana Maria Archila - Se puede palpar la emoción este mes en las comunidades inmigrantes pues los neoyorquinos, incluidos miles de inmigrantes indocumentados deseosos de más acceso e igualdad, acudieron en masa a inscribirse para IDNYC. El éxito del programa es claro, ya que más de 12,000 residentes ya se han inscrito y más de 100,000 otros tienen cita para hacerlo.
Los beneficios de tener tal identificación son básicos, pero la tarjeta de identificación gubernamental es absolutamente necesaria para quienes de lo contrario enfrentarían muchos desafíos en el diario vivir.
Guadalupe Paleta, madre indocumentada y residente de Queens, hizo cita la semana pasada. Con identificación, podrá visitar la escuela de sus hijos sin necesidad de preocuparse. No le molesta tener que esperar unas cuantas semanas para solicitarla. "Esta identificación indica que estamos acá, que nos ven", dijo.
Para las familias inmigrantes como la de Guadalupe, el programa de identificación ofrece mucho más que una tarjeta con foto. Nos dice que, independientemente de nuestra situación, si hemos echado raíces aquí, pertenecemos aquí.
El entusiasmo por IDNYC es enorme. Ante la oportunidad de tener una tarjeta que simboliza su estatus como neoyorquinos, los inmigrantes acudieron en masa. Nuestras familias atestaron oficinas e hicieron largas filas. Fue prueba de la labor hecha por la oficina del alcalde, como también la comunidad –organizaciones de servicio y de activismo, medios de prensa y otros– para informar a los neoyorquinos sobre el programa.
Pero no todos nuestros vecinos tuvieron la sensatez necesaria para darse cuenta del valor histórico y cívico de lo sucedido. Opositores al programa no pudieron resistir la tentación de armar escándalo.
Hicieron que otros en el entorno de comentarios noticiosos cayeran en la trampa de perder la perspectiva y fueran tendenciosos en su opinión sobre el programa.
La indignación y las protestas sobre las fallas del programa provinieron de quienes nunca apoyaron IDNYC, y a muchos nos parecieron poco sinceras. Simplemente no se percataron de la verdadera noticia que se producía ante sus ojos: la ciudad de NY sirve de inspiración al incluir cada vez más a todo tipo de personas.
Sin embargo, este programa es demasiado importante para demasiados neoyorquinos como para convertirse en una serie de golpes editoriales bajos al alcalde.
A todos nos deben alentar y conmover las imágenes de familias inmigrantes que se inscriben para IDNYC. Confirman la importancia de una política municipal dinámica que facilita la inclusión de los inmigrantes.
Para ver el articulo original, haga un clic aqui.
2 days ago
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