California in Crisis - The Report
A Report on the Foreclosure Crisis
California in Crisis: How Wells Fargo's Foreclosure Pipeline is Damaging Local Communities
Five years after the housing market collapsed,...
Five years after the housing market collapsed, California’s economy remains weak. The unemployment rate is nearly 10 percent, twice what it was in 2006, and in 2012 the State’s underemployment rate averaged an astonishing 19.3 percent.
The continuing housing crisis remains a key cause of this widespread economic tragedy. Nearly two million California homeowners are underwater, owing more on their mortgage than their home is worth.
Since 2008, banks have foreclosed on approximately 1.7 million homes in the state. Right now, around 65,000 California homeowners are in the “foreclosure pipeline” – they’ve received a Notice of Default or a Notice of Trustee Sale. Every day, more and more families get added to this list.
Wells Fargo is the biggest mortgage service provider in California, responsible for nearly one in five of these impending foreclosures. This report shows the tremendous damage that will befall California’s communities if Wells Fargo continues to foreclose on so many families.
Download the report here.
Executive SummaryFive years after the housing market collapsed, California’s economy remains weak. The unemployment rate is nearly 10 percent, twice what it was in 2006, and in 2012 the State’s underemployment rate averaged an astonishing 19.3 percent. Millions of Californians are struggling to make ends meet.
The continuing housing crisis remains a key cause of this widespread misery. Nearly two million California homeowners are underwater, owing more on their mortgage than their home is worth. This tremendous mortgage debt is severely crippling the State’s economy by holding back consumer spending and preventing a robust recovery.
And the mortgage debt is devastating the lives of too many Californians. Since 2008, banks have foreclosed on approximately 1.7 million homes in the state. Right now, about 65,000 California homeowners are in the “foreclosure pipeline” – they’ve received a Notice of Default or a Notice of Trustee Sale. Every day, more and more families get added to this list.
Wells Fargo is the biggest mortgage servicer in California, responsible for nearly one in five of these impending foreclosures. This report shows the tremendous damage that will befall California’s communities if Wells Fargo continues to foreclose on so many families. As of February 2013, Wells Fargo had 11,616 homes in its foreclosure pipeline. If all of these homes were to go through foreclosure:
Each home would lose approximately 22 percent of its value, for a total loss of approximately $1.07 billion, Homes in the surrounding neighborhood would lose value as well, for an additional loss of about $2.2 billion; and Government tax revenues would be cut by $20 million, as a result of that depreciation.Every month, more homes fall into the foreclosure pipeline, compounding this disaster. The foreclosure crisis has hit African-American and Latino borrowers and communities particularly hard. The pages below highlight the concentration of distressed loans handled by Wells Fargo that are in African-American and Latino neighborhoods. These communities have already suffered tremendous wealth loss due to the recession and this report shows that far more harm will occur in the coming months unless Wells Fargo changes its policies.
But Californians do not have to accept this bleak future. Economists and policy experts across the political spectrum agree that an alternative approach to the housing crisis can be a win-win-win for homeowners, mortgage holders, and California’s economy. As this report explains, widespread modification of home mortgages to current market value would prevent tens of thousands of needless foreclosures, inject billions of dollars into the economy, create hundreds of thousands of new jobs – and would even be in the financial interest of the investors who own the mortgages.
Wells Fargo is a pivotal actor in determining whether principal reduction becomes a widespread solution. Its failure to lead on this issue is clear. The most recent report from the national monitor of the multi-state Attorneys General mortgage servicing settlement shows that in California, Wells Fargo is providing far less principal reduction than Bank of America, despite the fact that it services more loans.
The solutions are clear: Wells Fargo should (1) commit to a broad program of principal reduction, (2) be honest with Californians by reporting data on its principal reduction, short sales, and foreclosures by race, income, and zip code, and (3) immediately stop all foreclosures until the first two solutions are implemented.
After years of predatory lending and heartless foreclosures, it is time for Wells Fargo to stop. Stop the needless foreclosures. Stop the needless evictions. End this housing crisis.NY Fed names Williams to top post amid political backlash
NY Fed names Williams to top post amid political backlash
“Yet the drum beat of criticism in recent weeks, including a demonstration outside the New York Fed and letters from state and city lawmakers, is raising worries within the Fed about independence...
“Yet the drum beat of criticism in recent weeks, including a demonstration outside the New York Fed and letters from state and city lawmakers, is raising worries within the Fed about independence from political pressure. Some lawmakers have in the past said the New York Fed president should be a presidential appointment like Fed governors. On Tuesday, advocacy group Fed Up slammed the appointment of "yet another white man whose record on Wall Street regulation and full employment raises serious questions."
Read the full article here.
Scarlett Johansson, Her "Avengers" Co-Stars And The John Gore Organization Raise $500,000 For Puerto Rico Hurricane Relief Efforts
Scarlett Johansson, Her "Avengers" Co-Stars And The John Gore Organization Raise $500,000 For Puerto Rico Hurricane Relief Efforts
"We are deeply grateful to Scarlett Johansson, Kenny Leon and everyone involved in the production of this play for stepping up and contributing their talent to help towards the equitable and just...
"We are deeply grateful to Scarlett Johansson, Kenny Leon and everyone involved in the production of this play for stepping up and contributing their talent to help towards the equitable and just rebuilding of Puerto Rico," explained Xiomara Caro, Director of New Organizing Projects for the Center of Popular Democracy and coordinator of Maria Fund. "This event demonstrates the importance of collective solidarity and responsibility and how powerful it is when we come together to help our communities."
Read the full article here.
Here Are the City Policies That Democrats Need to be Talking About
Here Are the City Policies That Democrats Need to be Talking About
This has been an incredibly disturbing election year: to a degree unprecedented in our lifetimes, hatred and xenophobia are being marshalled to support a reactionary nationalistic agenda. As...
This has been an incredibly disturbing election year: to a degree unprecedented in our lifetimes, hatred and xenophobia are being marshalled to support a reactionary nationalistic agenda. As leaders of Local Progress, a network of more than 500 progressive elected officials from cities and towns across the country, we stand together in support of a positive vision to make America great: economic inclusion, racial and gender equity, sustainable communities, and good government that serves the public interest.
This week, as Republicans and Democrats gather for their national conventions, Local Progress is releasing a national platform of our own. We adopted the platform on July 9 in Pittsburgh at our Fifth Annual Convening, which was attended by over 100 local elected officials from around the country and hosted by Pittsburgh Mayor Bill Peduto.
Our platform lays out a series of practical and transformational steps that the federal government can take to promote strong, equitable cities. On an array of issues – from affordable housing and environmental protection to workers’ rights and police reform – we’ve identified strategies Congress and the executive branch can take to support, incentivize, and collaborate with local government officials like us who are trying to help our constituents build dignified and secure lives. You can read our full platform here.
With conservatives in control of Congress and a large majority of statehouses, many of the most important policy developments in recent years have come from the local level. In our cities of Minneapolis and New York, for example, we’ve passed paid sick days laws that guarantee workers time off to care for themselves and their loved ones. Earned sick time is a worker rights issue, but it’s also about gender and racial equity, because those previously lacking paid sick days are overwhelmingly women and people of color. Our cities are also confronting the affordable housing crisis with inclusionary housing laws; pushing for reform of our police departments to eliminate discriminatory policing and keep our communities safe; and shifting budget priorities to invest in the infrastructure, programs and services that help all of our constituents thrive.
These city policies have transformed the national discourse. Hillary Clinton’s support for a higher federal minimum wage is a testament to the power of the workers, community-based organizations, and policy advocates who set such a worthy goal and to Sen. Bernie Sanders, who did so much to build momentum for the issue and pull her along. But it’s also a testament to Seattle, San Francisco, Los Angeles, Washington DC, and other cities that have actually passed $15 minimum wages and are shifting the boundaries of mainstream discourse. The members of Local Progress have been at the frontlines of these fights in cities around the country, and we are proud to stand in the trenches with constituents who are working so bravely to build a more just society.
But the fact is that we cannot do it alone. The devastation wrought by the water crisis in Flint brought national attention to a reality being felt across the country: localities are starved of the resources they need to provide crucial services for their residents, particularly for low-income families and communities of color. As public servants, we believe in the power of government to improve the lives of our constituents. However, too often federal and state governments are an obstacle, not an aid, to advancing local policies that address these urgent issues.
In too many states, cities do not receive the financial resources they need to build strong schools, run proper public transit systems, or keep parks clean and safe. And we are often prohibited from passing laws to raise the revenue we need. Beyond financial constraints, many states are preempting cities’ ability to pass common sense regulations: smart gun safety laws, livable wages for workers (a limitation that affects New York City), and a just transition to a clean energy economy.
In short, we need the federal government to help us. Here are a few examples, drawn from our platform, that show how the next Congress and Administration can help city governments make a huge difference in our constituents’ lives:
The Department of Education can double down on investments in community schools that have been proven to reduce inequities, as well as restorative justice programs to help end the school-to-prison pipeline. And it can evaluate for-profit charter schools to determine whether they are exacerbating segregation and adhering to basic standards of accountability.
Congress can support the creation and preservation of affordable housing with a significant expansion of the Section 8 voucher program and public housing, as well as a stronger commitment to programs that prevent homelessness. And the Department of Housing and Urban Development can ensure the distressed mortgages it sells help the community – rather than Wall Street speculators.
The Department of Transportation can partner with cities to strengthen Vision Zero and “complete streets” initiatives that improve access to public transit and prioritize safety, sustainability, and racial and economic equity.
The Department of Labor can collaborate with cities to enforce labor standards and respond to the challenges created by the on-demand economy.
And, of course, the federal government must help eliminate the racially disparate impact of local policing and criminal justice systems. The Department of Justice should strengthen its oversight of local police departments, ensure that special prosecutors conduct investigations of alleged police misconduct, and curtail the transfers of military equipment to local departments. And it should incentivize the creation of alternatives to incarceration such as mental health and addiction services in both states and localities.
More than ever, we need strong cities and strong city leaders. The truth is that, right now, Congress is not working for the American people. Cities are leading the way, and will continue to do so. We hope that next year, with a new Congress and a President committed to inclusion, equity, and shared prosperity, Washington DC will give our nation’s cities the support we need to promote genuine social justice for America.
By RITCHIE TORRES AND LISA BENDER
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Puerto Rican Activists Reject Debt Restructuring Agreement
02.10.2020
San Juan,...
02.10.2020
San Juan, Puerto Rico -- In response to the new debt adjustment deal announced by the Financial Management and Oversight Board (FOMB) on February 9th, the co-director of community dignity campaigns at Center for Popular Democracy, Julio Lopez Varona, shared the following statement:
“The FOMB’s latest proposal should be seen as an insult to the people of Puerto Rico. This agreement ensures lofty payments to hedge funds and corporations who paid cents on the dollar on bonds that were in some cases emitted illegally. These payments will be funded by cutting pensions and imposing even more taxes, despite the struggle to recover from ongoing earthquakes and the impact of Hurricane Maria. No payments to Wall Street should be made while Puerto Rico struggles to recover. It is imperative that we reject this agreement and demand the cancellation of the debt as the only way to a fair recovery.”
Despite Puerto Rico’s unsustainable debt undergoing renegotiating deals for the last few years, the FOMB’s proposal has barely reached a consensus on a plan that does more than benefit Wall Street and bondholders. The proposal would give bondholders more than a 70% rate of recovery, retrieving that by raising local taxes and sustaining an 8.5% cut to pensions.
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JPMorgan CEO Jamie Dimon is sticking with Team Trump
PMorgan Chase CEO Jamie Dimon is sticking with President Trump.
Presiding at the U.S. banking giant's annual shareholder meeting Tuesday, Dimon got an earful from investors who criticized...
PMorgan Chase CEO Jamie Dimon is sticking with President Trump.
Presiding at the U.S. banking giant's annual shareholder meeting Tuesday, Dimon got an earful from investors who criticized JPMorgan's support of the new White House administration and asked whether he would step down from Trump's business advisory council.
Read the full article here.
For Some Starbucks Workers, Job Leaves Bitter Taste
CBS MoneyWatch - September 26, 2014, by Alain Sherter - Liberte Locke, a 32-year-old "barista" at a Starbucks (...
CBS MoneyWatch - September 26, 2014, by Alain Sherter - Liberte Locke, a 32-year-old "barista" at a Starbucks (SBUX) in New York City, is fed up.
"Starbucks' attitude is that there's always someone else can who can do the job," she said in running through her complaints about life at the java giant.
If that isn't necessarily the consensus among Starbucks workers, interviews with nine current and former baristas at the company make clear it's not an isolated opinion, either. Even those who say they like their job paint a picture of a business that underpays front-line workers, enforces work rules arbitrarily and too often fails to strike a balance between corporate goals and employee needs.
Of course, such complaints are nothing new in retail, where low pay and erratic schedules are the norm. But by its own account, Starbucks is no ordinary company and is ostensibly a far cry from the fast-food outlets now facing a nationwide uprising by employees tired of working for peanuts.
That's evident in the company's recruitment pitch. Starbucks invites job-seekers to "become a part of something bigger and inspire positive change in the world," describing it as a chance to discover a "deep sense of purpose."
Damage control
That image suffered a serious blow last month after The New York Times vividly chronicled a Starbucks worker struggling with the company's scheduling practices. The story, which centered on a 22-year-old barista and single mother, amounted to a public relations nightmare for Starbucks. Perhaps not coincidentally, within days of the story's publication top executives were promising reform.
In a memo to employees earlier this month, for instance, Chief Operating Officer Troy Alstead vowed to "transform the U.S. partner experience," referring to Starbucks' more than 130,000 baristas. Inviting worker feedback, he said Starbucks will examine its approach to employee pay, revisit its dress code, make it easier for people to ask for time off, and consider other changes aimed at helping baristas balance work and their personal lives.
Among other changes, the company said it would end the practice of "clopening," when an employee responsible for closing a store late at night is also assigned to open it early in the morning.
"We recognize that we can do more for our partners who wear the apron every day," he wrote.
Some baristas did not feel this August memo from Starbucks went far enough in proposing ways to improve work conditions, so they marked it up with their own ideas.
Although Starbucks workers welcome this pledge to respect the apron, they fear the company is more intent on dousing the PR flames than on genuinely improving employees' experience. After the retailer last month sent an email to workers outlining possible solutions to the kind of scheduling problems and related issues detailed by the Times, a group of baristas gave the proposal a C- and posted online a marked-up version of the memo listing their own demands (image above).
"We hope you're ready for a commitment to give us schedules that don't mess with taking care of kids, going to school or holding onto that second job we need because Sbux wages don't make ends meet," wrote the baristas, who are working with a union-backed labor group, the Center for Popular Democracy.
Retail jungle
Despite the recent media focus on Starbucks, the company's labor practices are generally no worse than those of many large retailers. In some ways they're better, with the company offering health care to part-time, as well as full-time, workers; unusually generous 401(k) matching contributions; annual stock grants to employees; and tuition reimbursement.
Starbucks highlights such benefits as an example of its commitment to employees. "Sharing success with one another has been core to the company's heritage for more than 40 years," Alstead said in the September memo.
Meanwhile, some baristas say they enjoy their work and feel valued by Starbucks. "It's a decent place to work, and my manager and co-workers are great," said one employee who asked not to be identified.
But other current and former workers claim Starbucks has changed in recent years, saying that corporate leaders' intense focus on slashing costs has short-circuited its professed commitment to workers. Mostly, they say Starbucks doesn't listen to employees and even punishes those who identify problems.
"The biggest problem is that baristas don't have a voice," said Sarah Madden, a former Starbucks barista who left the company this spring after two years with the coffee vendor. "They can't speak to issues that they know exist. Workers know how to fix them, but when [they] speak up there are serious repercussions -- your hours get cut, you're transferred to another store or isolated from other people."
Employees interviewed for this article said one result of Starbucks' cost-containment push is that stores are frequently understaffed, hurting customer service and forcing managers to scramble to find staff. That problem is common across the big-box stores that dominate the retail sector, experts said.
"One the one hand, retailers overhire, but they're also understaffed, so everybody's running around and then there aren't enough people on the floor," said Susan Lambert, a professor at the University of Chicago and an expert in work-life issues. "Companies are effectively loading all the risk onto workers so that they're not the ones incurring the risks inherent in business."
Starbucks denies that its stores are short-staffed. "We're proud of the level of service we provide in our stores," said Zack Hutson, a spokesman for the company. "We know that the connection our partners have with customers is the foundation of the Starbucks experience. It wouldn't be in our best interest. We want our customers to have the appropriate service level when they come to our stores."
To be sure, Starbucks is hardly the only U.S. corporate giant to keep a gimlet eye on its bottom line -- among Fortune 500 companies that approach to management is the rule, not the exception, and CEOs across the land defend it as an inviolable fiduciary duty to shareholders.
But baristas say Starbucks' focus on profits and cost-cutting has increasingly led its leadership to tune workers out. Locke, who has worked for the company since 2006 and who earns roughly $16,000 a year, said she yearned for the Starbucks of old.
"When I started they had a training program and taught you how to be a coffee expert. There was more of a culture of supporting each other as co-workers. Store managers were sympathetic. I really enjoyed it."
Asked why she stays at Starbucks, Locke said her employment options are limited because she lacks a college education and because her only professional experience is in retail.
Living wage?
According to workers, the best thing Starbucks can do for its apron-wearers is to raise their pay and offer full-time hours instead of the 20 to 30 hours that most employees work.
Samantha Cole, a barista in Omaha, Neb., said she struggles to get by on her supervisor's salary of $11.25 an hour. Such pay may be better than what she would earn working for other retailers, but the 30-year-old mother of two say it's still not a living wage.
"I'm definitely not making enough money," said Cole, who has been with the company for six years. "A lot of us are right there with what fast-food workers are making."
Such frustrations are also evident in comments on the Facebook page Starbucks uses to communicate with employees and where it is asking baristas for input regarding the company's labor practices. Wrote one employee: "I've worked for the company for 7 years in January, and I don't make enough to support myself on one job so I work 2 jobs, 6 days a week.... I've seen a lot of amazing partners leave because they don't make enough."
Starbucks declined to disclose compensation data, citing competitive reasons and saying that pay varies widely according to workers' experience and where in the U.S. stores are located. It didn't respond to emails requesting clarification regarding other aspects of its labor policies.
It's worth noting that low pay isn't unique to Starbucks -- in retail it is the norm. As of 2012 (the latest year for which data is available), the median hourly income for retail salespeople is $10.29 per hour, or $21,410 a year, according to the Bureau of Labor Statistics. Hourly pay for full-time retail workers range from a high of $14.42 to $9.61 for lower-paid people, according to Demos, a liberal-leaning think tank in New York. Part-timers typically make much less, with the average cashier earning $18,500 a year.
"Until [Starbucks] gives a living wage to every employee, they can't claim to be a good employer," Locke said, who added that it has been roughly two years since her last pay raise.
"Race to the bottom"
Another priority for baristas: stable, regular schedules. Like most large retailers, Starbucks uses scheduling software to try to match the number of workers it has in a store at any given time to the amount of business it gets. Workers also may be scheduled according to the sales they generate or their facility in promoting certain products. The technology also can enable other savings, such as limiting overtime.
For employees, however, that approach -- known as "just-in-time" or "on-call" scheduling -- often results in lower income and chaotic hours.
Stephanie Luce, a professor of labor studies at City University of New York's Murphy Institute, characterizes the widespread adoption of scheduling and so-called workforce optimization technologies as a "new race to the bottom."
"Companies that have already reduced operating costs by making deals with irresponsible subcontractors and using the cheapest available materials are now cutting corners in the form of the 'just-in- time scheduling' of their workforce," she and her co-authors wrote in a recent report. "These 'lean' manufacturing practices take advantage of sophisticated software and an increasingly desperate workforce to cut labor costs to the bone."
By the same token, tighter control of worker schedules helps Starbucks contain payroll costs. But it also means employees who had expected to work a certain number of hours every week can see their schedules dramatically cut back and fluctuate wildly. The result? Smaller paychecks and a disturbance to family life.
"It makes it very hard for parents to participate in an intimate family routine and structure it in such a way that experts agree is good for children," Lambert said.
Irregular schedules also make it hard for workers who do need extra income to work a second job, schedule appointments and plan other aspects of their lives.
Baristas said Starbucks posts their schedule only days in advance and that they are often subject to change. Following the Times story, Starbucks said it would post schedules at least one week in advance. That's not enough time, several workers said, asking the company to provide at least two or three weeks notice, as retailers ranging from Walmart (WMT) and H&M to Victoria's Secret (LB) do.
Meanwhile, despite Starbucks' promise to end clopening, the practice continues, some workers said, although the company insists that this is only in cases when people request such shifts.
"Partners should never be required to work opening and closing shifts. That policy is clear," Starbucks' Hutson said, adding that the company is studying ways to give workers more input in their schedules. "If there are cases where that's not happening, we want to know about that."
Given the scrutiny on Starbucks, the company can count on baristas to do just that.
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Philly Council approves bills for ‘Fair Workweek’ and $15/hr wage hike
Philly Council approves bills for ‘Fair Workweek’ and $15/hr wage hike
Philadelphia’s Fair Workweek bill is stronger in some ways than those across the country, but weaker in others, said Rachel Deutsch, an attorney with the Center for Popular Democracy, a main...
Philadelphia’s Fair Workweek bill is stronger in some ways than those across the country, but weaker in others, said Rachel Deutsch, an attorney with the Center for Popular Democracy, a main organizer of the national Fair Workweek movement.
Read the full article here.
Why Charter Schools Are a Bad Idea: Guest Opinion
AL.com - March 17, 2014, by Rep. Craig Ford - Other than the $700 million hole in the state's General Fund budget, no issue has been more talked about than the charter school bill.
...
AL.com - March 17, 2014, by Rep. Craig Ford - Other than the $700 million hole in the state's General Fund budget, no issue has been more talked about than the charter school bill.
Republicans in the Alabama legislature have made charter schools a part of their legislative agenda, and a priority in this legislative session (which is ironic, given these same Republican legislators campaigned on stopping President Obama's agenda, but President Obama has been one of the strongest advocates for charter schools).
The charter school bill was passed out of the state senate last week, and will most likely be voted on in the state House of Representatives this week.
Because the Republicans hold a Supermajority (nearly 70 percent of legislators in the House of Representatives), they will certainly force this bill through, and it will be up to Gov. Bentley to decide whether to veto the bill.
There is no doubt that something needs to be done in some of our school systems. But charter schools are not the answer, and will not give our children the better quality of education that proponents of charter schools have claimed.
Researchers at Stanford University conducted two studies on charter schools, in which they reviewed test scores from charter schools in 26 states. The results they found undermine the argument that charter schools outperform existing public schools.
In all, only 25 percent of charter schools performed better than traditional public schools in reading, while only 29 percent performed better in math. More troubling is that 19 percent of charters performed worse in reading, while 31 percent performed "significantly worse" in math. The rest performed at the same level as the existing public schools.
So after about two decades of experimenting with charter schools, the test results have proven that charter schools are not likely to give our children a better quality education. In fact, there's a pretty high chance that our children will get a lower quality education at a charter school than they would at the school they are already attending.
Charter schools also have a very real problem with fraud, waste and abuse of tax dollars.
The Center for Popular Democracy and Integrity In Education, both non-profit organizations, released a report that found more than $100 million in fraud, waste and abuse by fraudulent charter operators in just 15 of the 42 states that have charter schools.
Another report conducted by Integrity In Education found that, just in Pennsylvania, charter operators had fraudulently misused more than $30 million!
The authors of Alabama¹s charter school bill have claimed their bill addresses the accountability issues. But it does not.
The charter school bill that came out of the Alabama Senate does not require that ³Education Service Providers² be non-profit organizations. What this means is that, while the organization that applies for the charter might have to report to the state, the companies that it subcontracts to do not and have no accountability to the taxpayers.
The reason charter schools are hotbeds for fraud and waste is because the for-profit companies that provide education services, such as financial and operation management, managing the facilities and even designing the curriculum, are not held accountable.
In fact, in the reports I referenced earlier, government regulators were not the ones who have discovered the fraud in charter schools. The fraud was only discovered by an investigative reporter, or when a whistle blower came forward or someone filed a lawsuit.
The fraud has come in many forms, including charter operators using school funds illegally to buy personal luxuries for themselves and to support their other businesses.
Investigative reporters have also found that education service providers are typically non-compliant with request for information required by law under the Freedom of Information act. The Washington Post reported that, during their own investigation of charter schools, 70 percent of Education Management Organizations refused to respond to the request for a copy of their contract with Charter Operators, while another 10 percent claimed they were not legally required to publicly provide a copy of their contract.
So even if the Alabama legislature passes a provision requiring them to make their contracts and finances publicly available, 80 percent of these organizations have proven that they will ignore the law and refuse to provide the information.
The sad thing is these are not even all the arguments that can be made against charter schools. But these are more than enough to prove that charter schools are a scam, and a bad idea. Yes, something needs to be done in some school systems. But charter schools are not the answer.
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Zara Employee Humiliated By Managers For Her Braids
Zara Employee Humiliated By Managers For Her Braids
Twenty year-old Zara employee, Cree Ballah from Toronto, Canada, has spoken out after she was recently humiliated by two of her managers for having what the fashion chain staff members deemed an ‘...
Twenty year-old Zara employee, Cree Ballah from Toronto, Canada, has spoken out after she was recently humiliated by two of her managers for having what the fashion chain staff members deemed an ‘inappropriate’ hairstyle.
Ballah, who is of African American decent, was wearing four box braids pulled into a low, simple ponytail when she was reprimanded.
Originally, the young sales assistant was told by a manager that her hair was not in keeping with Zara’s image, telling her, “We’re going for a clean professional look with Zara and the hairstyle you have now is not the look for Zara.”
Afterwards, another manager pulled Ballah aside, lead her out of the store and attempted to ‘fix’ her hair in the middle of the crowded mall, leaving the Zara employee feeling humiliated and offended.
“My hair type is also linked to my race, so to me, I felt like it was direct discrimination against my ethnicity in the sense of what comes along with it,” Ballah told CBC News in a recent interview.
“My hair type is out of my control and I try to control it to the best of my ability, which wasn’t up to standard for Zara.”
This isn’t the first time the Spanish retail giant has been in hot water for its questionable treatment of employees. Last year, a survey conducted by the Center for Popular Democracy (CDP) found Zara was demonstrating racial bias not only towards its employees but its customers as well.
The report established darker-skinned employees were far less likely to get a raise or be promoted and were twice as unhappy with their working hours compared to their fairer-skinned peers. As well as this, the report discovered employees were trained to report ‘special orders’ to in-store management.
‘Special orders’ are considered to be suspicious looking customers who, after being reported, are tailed by a Zara staff member to ensure no items are stolen. Results uncovered the majority of employees used the code on African American and Latino shoppers, and, according to the CPD survey, an actual member of staff of African American decent was deemed as a ‘special order’ when entering the store on his day off to collect a paycheque.
Adding insult to injury, the brand released a line of shirts emblazoned with the slogan ‘White Is The New Black’ on them in 2014, causing public outcry for their racially insensitive message.
And while the fashion chain has continued to escape largely unscathed under pleas of ignorance, its run-in with Ballah may be the final straw, with the ex-staffer currently pursuing her options, which include taking the issue to the Ontario Human Rights Commission.
By Isabelle Gillespie
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10 hours ago
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