Can We Forgo Wells Fargo?
When disgraced Wells Fargo CEO John Stumpf was forced to resign a few weeks ago, it was a victory for economic justice. But this move, however dramatic, does not go far enough to fix the problems...
When disgraced Wells Fargo CEO John Stumpf was forced to resign a few weeks ago, it was a victory for economic justice. But this move, however dramatic, does not go far enough to fix the problems with Wells Fargo and Wall Street.
Christina Livingston, executive director of the Alliance of Californians for Community Empowerment (ACCE).
A diverse array of progressive organizations are joining forces to not only end Wells Fargo's predatory practices, but also increase the pressure for broad Wall Street reform that puts people and communities first.
Through a new "Forgo Wells" campaign, they are pushing city councils, state legislatures, school boards, and other public bodies to stop doing business with Wells Fargo. And they've already scored some wins.
The groups launching this divestment campaign include national organizations like Jobs with Justice, the Communications Workers of America, and Center for Popular Democracy, as well as local groups like New York Communities for Change, Minnesota-based Isaiah, and the Alliance of Californians for Community Empowerment (ACCE).
Inequality.org co-editor Sarah Anderson interviewed ACCE's executive director, Christina Livingston, about her involvement in the Forgo Wells campaign.
Sarah Anderson: How did you come to be involved in this campaign?
Christina Livingston: Since our doors opened in 2010, Wall Street accountability work has been a staple issue. That's because so many of the issues people are battling have connections to Wall Street banks. From the foreclosure crisis, to wealth stripping of cities and municipalities, to student debt, and beyond, Wall Street banks and hedge funds are behaving in ways that harm you and me for the sake of unchecked power and greed.
Last year we engaged in a campaign organizing bank workers under our worker justice campaign umbrella and quickly realized that bank workers were being treated poorly by the big banks in many ways, including the use of unrealistic sales goals.
Working with the Communications Workers of America (CWA), we began to research how widespread these sales goals were and the impact they were having on workers. We didn't know then that because of these sales goals Wells Fargo workers were being compelled to open fraudulent accounts. However, given our interactions with Wells Fargo in the past, we were not surprised to find that such a widespread fraudulent practice existed. In fact, this is very reminiscent of the robo-signing practice Wells Fargo was found guilty of during the height of the foreclosure crisis.
What role will ACCE be playing in the Forgo Wells campaign?
Given that Wells Fargo is based in San Francisco, we felt compelled to immediately begin working with some of our largest California cities to call on the city government to take action. Already the Los Angeles City Council and the San Francisco Board of Supervisors have moved to suspend business with Wells Fargo and we plan to move at least 2-3 other cities in the coming months to take action. We are also encouraging organizing groups in other states to work with their legislators to suspend business with Wells at the state or city level.
Why is this a strategic moment for targeting Wells Fargo?
First, hubris and exploitation is in their DNA. They have never worked with community organizations, and racially biased marketing and fraud is baked into their way of doing business. It is sort of like a game of Jenga (or house of cards). Once you pull out that piece that makes the tower fall, which in this case was the fraud that front-line workers were forced to commit, you unearth many more parts of fraudulent behavior, and realize it is pervasive through everything.
Just a couple days ago, Wells reached a $50 million settlement for mortgage appraisal fraud. There are so many ways in which they are corrupt, and their tentacles are everywhere. They are invested big in private prisons, police foundations, the Dakota Access pipeline, Puerto Rican bonds. Basically, they are invested everywhere, and bad things come from their investments.
Do you see any potential for building alliances that cut across partisan lines in this campaign?
We think so. Part of the right-wing pushback against Hillary Clinton is that she has been friends with Wall Street. People do not trust her to stand up to the banks and hedge funds. Some of Trump's economic appeal has been his willingness to "tell it like it is." And there are unfortunately some Bernie followers who are supporting Trump. The anti-Wall Street message holds both major parties accountable.
Is this campaign just about Wells Fargo or are you trying to address broader problems with Wall Street?
This is absolutely not just a campaign about Wells Fargo, it is about all the big banks and hedge funds that are implementing practices and policies that hurt communities in order to deliver for the wealthy few at the top. Wells is emblematic of what everyone else is doing.
What would victory look like for you?
If we are really successful, we would see the break-up of Wells Fargo and would send a message that banks will be held responsible for the ways they treat their workers, shareholders, and customers. Along the way, we hope to get a fair amount of justice in monetary settlements, rights for workers, and divestment from a host of racist and exploitative investments.
This piece was reprinted by Truthout with permission or license. It may not be reproduced in any form without permission or license from the source.
By Sarah Anderson
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New Report Details Plans for Low-Wage Worker Justice
The Village Voice - February 14, 2013, by Jason Lewis - When a worker in this city has to endure a three-hour walk to work because his minimum wage salary doesn't allow for him to afford public...
The Village Voice - February 14, 2013, by Jason Lewis - When a worker in this city has to endure a three-hour walk to work because his minimum wage salary doesn't allow for him to afford public transportation, that's a problem.
Low-wage workers across the city have stood up in the past year to demand that such insecurity be eradicated and to pressure employers to finally begin to provide them with just compensation for their labor.
Building on the progress generated by these worker-led movements--in industries such as retail, fast-food, airline security and car washing--UnitedNY, the Center for Popular Democracy and other advocacy groups held a symposium and released a report yesterday analyzing the state of the city's low-wage worker movement.
"It's very difficult to try and make ends meet on $7.25 minimum wage in New York City," Alterique Hall, a worker in the fast-food industry, said during a news conference following the event. "Some nights you want to lay down cry because you [feel] like 'what's the point of going to work and putting all of myself into a job, [if] I'm going to be miserable when I get off work, miserable when I go home...and don't want to wake up and go to work the next day...to get disrespected, treated poorly and paid poorly.'"
Hall, who's been active in the push for fairer wages in the fast-food industry, is the worker who is often forced to embark on the three-hour treks to work. Hall said that his boss will sometimes said him home as a penalty for his tardiness--without considering the ridiculous journey he has to travel just to get to there.
"Working hard, and working as hard as you can, isn't paying off for them," mayoral hopeful and former City Comptroller Bill Thompson, said during the news conference. "They're being underemployed, They're being underpaid. They're being taken advantage of. They're being ignored. They're becoming a permanent underclass in the city of New York."
The UnitedNY and CPD report lays out four specific initiatives that workers and advocates must pressure the city to implement in order to help better the plight of low-wage workers. The reports calls on the city and employers to :
[Raise] standards for low-wage workers. [Regulate] high-violation industries where labor abuses are rampant. [Establish] a Mayor's Office of Labor Standards to ensure that employment laws are enforced. [Urge] the State to allow NYC to set a minimum wage higher than the State minimum--due to the higher cost of living in the City.The report pays close attention to the need for City Council to pass the paid sick-leave bill, and increase the minimum wage in the city to $10/hour--a salary that would net a worker with regular hours about $20,000/year in earnings.
"We can't continue to be a Tale of Two Cities, where the path to the middle class keeps fading for thousands of New Yorkers," said New York City Public Advocate Bill de Blasio. "We must break the logjam and pass paid sick leave in the City Council. We have to protect low-wage workers fighting union busting employers. We can't tolerate inaction any longer. It's time for real action to fight for working families."
During one of the symposium workshops, a panel of labor experts discussed the obstacles facing low-wage workers in their fight to obtain such rights.
"[We've] shifted from a General Motors economy to a Wal-Mart economy," Dorian Warren, a professor of public affairs at Columbia University, said during the discussion. "[The job market is filled with] part-time jobs, low wages, no benefits, no social contract, no ability to move up in the job the way 20th century workers were able to."
Warren says that the quality of jobs in the American economy will only decline if something isn't done. He noted that 24 percent of jobs were low-wage in 2009. By 2020, that number is expected to nearly double and hit 40 percent. To make matters worse, technological "advances" are expected to increase unemployment rates by 3-5 percent moving forward.
"We're looking at an economy only of low-wage work in the future, but also of high and permanent levels of unemployment," Warren said.
The panel was moderated by acclaimed labor reporter, Steven Greenhouse of the N.Y. Times and included Angelo Falcon, president of the National Institute for Latino Policy, Deborah Axt, co-executive director of Make the Road New York, M. Patricia Smith, the solicitor of labor for U.S. Department of Labor and Ana Avendano of the AFL-CIO.
Several panelists stressed the need to combat attacks from right-minded forces seeking to erode worker wage and benefit rights. Falcon says that those fighting for worker rights must correct popular narratives, many of which categorize wage and benefit increases for workers as business-killers.
"When we talk about the minimum wage, the immediate response from business is, we're going to lose jobs because, we're only going to be able to hire a few people. We have to have an answer to that objection," Falcon said. "Through raising the minimum wage, you create job growth in terms of people being able to put more money into the economy. You're [putting] less pressure on social welfare systems...the system is still subsidizing business [when the public provides] welfare and other social services."
Warren* argued a similar point.
"I think we have to be much more explicit about targeting the right the way that they've targeted us. There's a reason why the right has gone after public sector unionism," Warren* said. "They know that's where the heart of the labor movement is in terms of funding and in terms of membership. We have to get smarter about which parts of the right do we target to destroy ideologically, organizationally so that we can advance further our movements."
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If Janet Yellen Goes, the Fed’s Current Policy May Go With Her
If Janet Yellen Goes, the Fed’s Current Policy May Go With Her
GRAND TETON NATIONAL PARK, Wyo. — Liberal activists who stage an annual protest in favor of lower interest rates at the Federal Reserve’s annual conference here are planning a different kind of...
GRAND TETON NATIONAL PARK, Wyo. — Liberal activists who stage an annual protest in favor of lower interest rates at the Federal Reserve’s annual conference here are planning a different kind of demonstration this year. They plan to don “Yellen wigs” on Friday to demonstrate in support of Janet L. Yellen, the Fed chairwoman, whose first term ends in February.
President Trump must soon decide whether to renominate Ms. Yellen or pick someone similarly inclined to emphasize economic growth. Or, instead, he could accede to the wishes of many conservatives for a Fed chairman more worried about inflation.
Read the full article here.
Who is Jerome Powell, Trump’s pick for the nation’s most powerful economic position?
Who is Jerome Powell, Trump’s pick for the nation’s most powerful economic position?
"Yellen's background as a trained economist and experienced Fed official gave her needed independence from the influence of Wall Street,” says Jordan Haedtler, campaign manager for Fed Up, a grass...
"Yellen's background as a trained economist and experienced Fed official gave her needed independence from the influence of Wall Street,” says Jordan Haedtler, campaign manager for Fed Up, a grass roots Democratic effort. He says it's concerning that Powell would be Trump's second Carlyle Group veteran appointed to the Fed board. Earlier this year, Trump nominated Randal Quarles, another Carlyle Group alum, to an open Fed board seat overseeing bank regulation.
Read the full article here.
Fed policymakers see rate hikes, blurring dove-hawk divide
Whitehurst’s group of activists, Fed Up, has printed pamphlets to distribute at the conference venue that say George, along with other traditionally hawkish policymakers, “wants more people to be...
Whitehurst’s group of activists, Fed Up, has printed pamphlets to distribute at the conference venue that say George, along with other traditionally hawkish policymakers, “wants more people to be unemployed.”
Read the full article here.
Victoria's Secret on-call policy remains under wraps
In the face of a legal challenge in California and a probe by the New York State attorney general, underwear purveyor Victoria's Secret is said to have pulled the plug on a controversial labor...
In the face of a legal challenge in California and a probe by the New York State attorney general, underwear purveyor Victoria's Secret is said to have pulled the plug on a controversial labor practice known as on-call scheduling.
BuzzFeed reported the chain informed employees on Monday that it would no longer require its workers be available for shifts that could then be canceled with little notice and zero pay.
Victoria's Secret, one of five brands run by Columbus, Ohio-based L Brands (LB), on Tuesday said it was working on a response to the online publication's story but was not yet ready to do so seven hours after being called for comment.
In addition to Victoria's Secret, L Brands operates Bath and Body Works, La Senza, Victoria's Secret PINK and Henri Bendel. The company rang up $11.5 billion in sales in 2014 and runs nearly 3,000 specialty stores in the U.S.
"It feels like a safe bet to say that Victoria Secret's is feeling pressure," Elianne Farhat, deputy campaign director for the Fair Workweek Initiative at the Center for Popular Democracy, said. "We've seen a growing demand across the country for fair schedules because of the extreme chaos it creates."
Workers and labor activists say on-call scheduling can create havoc for livelihoods and personal lives, with the unpredictable hours making tasks such as taking classes, working another part-time job and covering child care difficult.
The practice of having on-call shifts has historically involved professions including emergency and medical workers, "but they are fairly compensated," Farhat said. "Over the last 10 years, as the retail sector has become the source of many jobs in our economy. It has seen the increased use of on-call scheduling."
If Victoria's Secret is shelving the on-call practice, "they are probably doing it to err on the side of caution, and not spend the time or money litigating the issue," said Los Angeles attorney Laura Reathaford, a partner at Venable who specializes in management-side employment issues. "California is a very employee-friendly state -- it's a very litigious state too."
If the company is indeed discontinuing the system, it would be offering some of what is sought in a lawsuit pending against the retailer in California.
"We're suing to recoup wages, and we're also seeking to put an end to the practice," David Leimbach, an attorney at Marlin & Saltzman, said of the litigation filed on behalf of two former Victoria Secret workers.
The complaint was filed on July 9, 2014, and the proposed class includes all individuals who worked at Victoria's Secret in California from July 9, 2010, to the present. L Brands told the court the proposed class numbered around 20,000, Leimbach said.
The federal judge presiding over the case dismissed the workers' claim that they were entitled to compensation under the state's reporting-time-pay law for on-call shifts for which they did not have to show up for work. But he also granted the two the right to appeal, saying the question of on-call shifts presented a question of law that could go either way.
"I can see the judge's point, no one really showed up, no one took the bus only to turn around and go home," Reathaford said.
"The district court dismissed that one claim, but said it's something the 9th circuit should immediately consider," Leimbach said.
Beyond the pending suit, no-call scheduling is drawing the attention of the New York state attorney general's office, which in April sent letters to 13 retailers, including Victoria's Secret, seeking information about their scheduling practices. A spokesman on Tuesday said the AG's office had no further comment.
And San Francisco next week begins enforcing an ordinance that requires major retailers give at least 24 hours notice to workers when changing or canceling shifts, or give them at least two hours of pay. The measure, which took effect in January, applies to retailers with at least 20 stores worldwide and 20 or more employees in San Francisco.
Source: CBS News
Starbucks vows to do more to ease barista schedules
An internal memo from a Starbucks executive this week urged store managers to "go the extra mile" to improve workers' schedules.
The letter was distributed on...
An internal memo from a Starbucks executive this week urged store managers to "go the extra mile" to improve workers' schedules.
The letter was distributed on Tuesday and refers to a New York Times story that was set to be published the following day titled, "Starbucks falls short after pledging better labor practices."
The Times story referred to a survey by the nonprofit advocacy group Center for Popular Democracy.
Based on interviews with 200 baristas in 37 states, the survey says Starbucks "is not living up to its commitment to provide predictable, sustainable schedules to its workforce."
In 2014, Starbucks said it was changing its policies telling managers to post schedules at least a week in advance and not make store employees work an opening and closing shift back-to-back.
In this week's memo, Cliff Burrows, Starbucks (SBUX) group president of the U.S. and Americas, said the findings of the new survey "suggest" that neither commitment was being met -- "contrary to the expectations we have in place."
In his letter, Burrows urges managers to improve scheduling for coffee baristas, who the company calls partners.
"To our store managers, I want to stress that as we continue to evolve and improve the usability of our system, we have to go the extra mile to ensure partners have a consistent schedule -- free of back-to-back close and open shifts that are less than 8 hours apart -- that is posted 2 weeks in advance," he wrote.
Source: CNN Money
Legal Defense To Detained Immigrants
Latin Times - Nov 07, 2013
Like the other 13 detainees set to appear before an immigration judge on Wednesday afternoon, Maximiliano Ortiz had been roused in the wee hours of...
Latin Times - Nov 07, 2013
Like the other 13 detainees set to appear before an immigration judge on Wednesday afternoon, Maximiliano Ortiz had been roused in the wee hours of the morning from his cell in a county jail. Facing the judge at the Varick Street Immigration Court in Lower Manhattan, clothed in an orange jumpsuit, he looked groggy.
"Are you arriving at this decision voluntarily?" the judge asked. The interpreter translated the question into Spanish.
"Yes," said Ortiz, and shortly afterward, having agreed to concede the charge of "entry without inspection" and accept an order of removal from the country, the first of about 190 poor, detained immigrant to receive pro bono legal representation via the city of New York was escorted out of the courtroom, chains jangling at his wrist and waist.
On Wednesday, a coalition of seven public defender, legal advocacy and community activist groups unveiled the New York Immigrant Family Unity Project (NYIFUP), the first program in the nation to win public funding for legal defense of detained immigrants who cannot afford to hire lawyers. In June, the New York City Council appropriated $500,000 for the pilot, which organizers say will be enough to meet about 20 percent of each year's need. Under the program, detainees whose income falls at no more than 200 percent of the federal poverty line can receive pro bono legal counsel from New York Immigrant Defenders, which consists of public defender offices The Bronx Defenders and Brooklyn Defense Services.
Organizers of the project trace its descent to the efforts of Second Circuit Court of Appeals Judge Robert Katzmann, who in 2010 commissioned two separate studies of detained immigrant representation in the city. The odds those reports gave detainees were dim: of the 4,818 detainees who had to argue their case from 2005 to 2010, one found, only 3 percent of them did it successfully, compared to 74 percent of those who were represented and weren't held in detention in the time leading up to their appearance. A separate study carried out previously by the City Bar Justice Center concluded that 39.2 percent of the 400 detainees it interviewed had "possibly meritorious claims for various forms of relief from removal".
Immigration law is one of the most notoriously complex types, comparable to tax law. But Lisa Schreibersdorf, founder and executive director of Brooklyn Defense Services, says detainees could win the right to remain in the country through a wide range of ways. Some have status and don't know it. "We had a kid who came to the country when he was two with his mom and dad. The parents got separated, and he went to live with his mom. His dad became a citizen before the kid turned 18. Now, that's automatic citizenship for the child, but the kid didn't know. When he was being interviewed by immigration officials, they'd ask if he was documented and he'd say, 'no'. So off he goes."
Others who have green cards or visas might be able to stay because of a US citizen spouse; those without papers might be able to receive legal status of some sort - for example, victims of domestic violence or trafficking could apply for U or T visas, or young people who grew up in the US could apply for DACA.
"People sometimes don't know, or they don't follow through and do it," she said. "Even now that they're facing deportation, it's not too late. You can still apply for those things, and that should actually negate the deportation proceeding. That's really where I think most of the benefit is going to come from."
"Then there's the low-level criminal cases where deportation is not required and the judge has the ability to cancel the removal. In that situation, a lawyer's very helpful because they explains to the judge what's going on with that family. It's very hard for an individual who's unrepresented to know what to tell the judge, what kind of things are going to help them. Plus it's very hard for people to speak in public. That's what we're good at."
On Wednesday, 10 of the 14 detainees who showed up for their initial court hearings were represented by lawyers provided by one of the two groups. All of them were from Latin American countries. Marianne Yang, the director of the immigration unit at Brooklyn Defense Services, says they expect demographics of clients to vary. But according to Transactional Records Access Clearinghouse(TRAC), a database of information obtained from Immigration and Customs Enforcement (ICE) and other federal agencies, out of the top ten most common nationalities, eight of them are in Latin America. The most typical profile for a detainee in NYC's immigration system is a Mexican (26 percent of all nationalities; Dominicans make up another 15 percent) who has been charged with "entry without inspection" -- a charge which accounts for about 47 percent of all detainees and some 89 percent of those who are from Mexico.
Immigration and Customs Enforcement (ICE) officials say the agency only goes after immigrants who fit in its priority categories: someone who has committed serious crimes while in the US lawfully, people who crossed the border illegally in recent times and has few community ties, and "egregious immigration violators", or those have committed fraud or violated immigration law on multiple occasions. But organizers point to the case of Carlos Rodríguez Vásquez, a 27-year-old cook from the Dominican Republic and husband to a US citizen wife who was arrested by the NYPD for "trespassing" in the apartment building of a friend in Washington Heights. "In court, they dropped the charges right away, because I'd never had any kind of trouble with the law," he said. But he'd never filed the paperwork to declare his marriage to his wife in the United States, and the NYPD passed him off to ICE, which transferred him to a detention facility in Hudson County, New Jersey.
His family shelled out for a lawyer. But when his case went before a judge, Vásquez says, "The lawyer I hired made me sign a voluntary deportation agreement without talking to me about it, without me knowing." He ended up calling the Northern Manhattan Coalition for Immigrant Rights, which helped him win a retrial, but not before remaining in detention for an additional eight months.
In a report released on Thursday, the project's organizers argue that it makes good financial sense for the public, saying it will save New York state nearly $1.9 million per year in public health insurance spending, foster care services, and lost tax revenues. It also says it'll help employers save $4 million annually which they lose through turnover when immigrants are forced to leave their jobs. "Taken together," the report says, "these savings offset the majority of the investment needed to establish he program."
"It's presented as something which is just for immigrant families," said Brittny Saunders, senior staff attorney at the Center for Popular Democracy. "But in reality it's for everybody."
Source:
The Price of Defunding the Police
A new report fleshes out the controversial demand to cut police department budgets and reallocate those funds into healthcare, housing, jobs, and schools. Will that make communities of color safer...
A new report fleshes out the controversial demand to cut police department budgets and reallocate those funds into healthcare, housing, jobs, and schools. Will that make communities of color safer?
Read the full article here.
Warren calls for diversity in Federal Reserve leadership - See more at: http://newbostonpost.com/2016/05/12/warren-calls-for-diversity-in-federal-reserve-leadership/#sthash.d6Uh56C5.dpuf
Warren calls for diversity in Federal Reserve leadership - See more at: http://newbostonpost.com/2016/05/12/warren-calls-for-diversity-in-federal-reserve-leadership/#sthash.d6Uh56C5.dpuf
WASHINGTON – The latest crusade in the name of diversity commenced on Thursday, this time aimed squarely at the makeup of the Federal Reserve’s leadership and spearheaded in part by Elizabeth...
WASHINGTON – The latest crusade in the name of diversity commenced on Thursday, this time aimed squarely at the makeup of the Federal Reserve’s leadership and spearheaded in part by Elizabeth Warren, the senior U.S. senator from Massachusetts.
The Cambridge Democrat recently linked up with fellow Democrat, Michigan U.S. Rep. John Conyers, to send a letter to Janet Yellen, chair of the Federal Reserve Board of Governors, asking the former Clinton administration adviser to take action. They cited a 1977 law that requires the bank regulator to reflect the nation’s diversity.
The progressive duo began their missive by praising her work under President Barack Obama before stating that they “remain deeply concerned that the Federal Reserve has not yet fulfilled its statutory and moral obligation to ensure that its leadership reflects the composition of our diverse nation.” Instead, they said, the central bank’s leadership “remains overwhelmingly and disproportionately white and male,” and is drawn mainly from major banks and corporations.
The letter cites a statistic reported in February by the left-leaning Center for Popular Democracy that indicates that “83 percent of Federal Reserve head office board members are white” while “men occupy nearly three-fourths of all regional bank directorships.”
The lawmakers assert that the discussions among Fed leaders regarding labor market conditions never once mentioned the situation confronting blacks in 2010, the most recent year for which full transcripts are available. The lawmakers point out that the unemployment rate for blacks that year never fell below 15.5 percent, while the nation’s average jobless rate hovered just below 10 percent during most of that post-recession period.
Fellow Massachusetts U.S. Sen. Ed Markey put his signature on the letter, alongside those of more than 120 other Democrats in Congress
Warren and Conyers later took to social media to rally the public around the cause:
Former Secretary of State Hillary Clinton, the frontrunner for the Democratic presidential nomination, was also quick to throw her support behind the call for diversity:
“The Fed needs to be more representative of America as a whole,” Jesse Ferguson, a Clinton campaign spokesman, told the Associated Press Thursday, adding that Clinton also opposes the fact that three private-sector bankers currently sit on each regional Fed bank board.
The Fed is actively working to further diversify its ranks, bank spokesman Dave Skidmore said in a statement provided to AP.
“Minority representation on Reserve Bank and Branch boards has increased from 16 percent in 2010 to 24 percent in 2016,” Skidmore told AP. “The proportion of women directors has risen from 23 percent to 30 percent over the same period. Currently, 46 percent of all directors are diverse in terms of race and/or gender (with a director who is both female and a minority counted only one time).”
“We are striving to continue that progress.”
By BY EVAN LIPS
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