The Fair Workweek bill is approved by City Council
Philly is following the example of New York City, Seattle, San Francisco, Washington D.C. and the state of Oregon, all...
Philly is following the example of New York City, Seattle, San Francisco, Washington D.C. and the state of Oregon, all of which have been lobbied by the "Fair Workweek Initiative," a program of the left wing non-profit Center for Popular Democracy, which has been funded by several large groups including the Ford Foundation and George Soros' Open Society Foundation.
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Why You Should Care About the Federal Reserve’s Secrecy and Elitism
New Republic - Last weekend, Cee Cee Butler, a 34-year-old McDonald’s worker from Washington D.C., became sick with the...
New Republic - Last weekend, Cee Cee Butler, a 34-year-old McDonald’s worker from Washington D.C., became sick with the flu, or at least something that resembled the flu. Her phone had been cut off and she missed work Friday, Saturday and Sunday. “I did a ‘no-call, no-show’ for three days and I’ve never done that in over the year and a half I’ve been working here at McDonald's,” she said. “They terminated me Tuesday morning. So I lost my job, my rent is going up in December, I have two kids—19 and 5, a girl and boy—and I can’t afford to take care of them.”
On Friday, Butler gathered outside the Federal Reserve building with around two dozen activists from labor unions and progressive groups before an afternoon meeting with Fed Chair Janet Yellen. The groups are part of a new campaign called “Fed Up” that is pressuring Yellen and her colleagues to keep interest rates at zero until the recovery strengthens and wages rise. “The economy is not working for the vast majority of people,” said Ady Barkan, a lawyer from The Center for Popular Democracy, which is the lead organizer of the campaign. Fed Up wants to rectify that problem by putting direct pressure on the Federal Reserve itself—a quest that may not captivate the public’s attention but could have a very real effect on the lives of working Americans.
In August, for instance, members of Fed Up staged protests outside of the Federal Reserve’s annual monetary policy conference in Jackson Hole, Wyoming. Many reporters there said it was the first time they could remember protestors at the conference—but their tactics must have worked, because Yellen agreed to meet with the protesters Friday afternoon in the boardroom where the Federal Open Markets Committee (FOMC) meets eight times a year to set monetary policy. Three other Federal Reserve governors—Vice Chair Stanley Fischer, Jerome Powell and Lael Brainard—joined the meeting and the activists said that Yellen was engaged throughout and was moved by the stories she heard. They hope that this meeting was just the first of many in the future.
The message the Fed Up campaign delivered is the same one voters sent loud and clear last week: The recovery is not being felt by millions of Americans. Exit polls indicated that 45 percent of voters considered the economy the most important issue of the midterms. Wage growth for low-income workers, like janitors and fast food workers, are barely keeping up with inflation. “That’s not an economic recovery,” said Jean Andre, who does location support for film production and is a member of New York Communities for Change. “That’s not the way thing should be.”
But the slow recovery isn’t always noticeable in leading economic indicators. The unemployment rate, for instance, has fallen 2.1 percentage points since the start of 2013 and is now at 5.8 percent, its lowest point in more than six years. As a result, some economists inside and outside the Fed, including inflation hawk Charles Plosser, have called for a hike in interest rates in the near future. “Beginning to raise rates sooner rather than later reduces the chance that inflation will accelerate and, in so doing, require policy to become fairly aggressive with perhaps unsettling consequences,” Plosser, the president of the Federal Reserve Bank of Philadelphia, said Wednesday.
Plosser’s worry about rising inflation, even though it is nowhere to be found, could prove dangerous. If the FOMC listens to the hawks, it will prematurely raise rates and choke off the recovery before workers see wage growth. So far, Yellen has done a good job ignoring Plosser and Co. And, luckily, Plosser and Richard Fisher, the president of the Dallas Federal Reserve Bank and another hawk at the FOMC, announced that they would retire in the spring of 2015, opening up two positions that have a significant impact on monetary policy. Fed Up sees their retirements as a boon—and is keen to have a say in the selection process.
Under the current rules, Plosser and Fisher’s replacements will be chosen by the board of the Philadelphia and Dallas reserve banks, respectively. Each board has nine members, three from banks and six from nonbanks—companies and organizations that are not financial institutions. Because of Dodd-Frank restrictions, only the six non-bank members are involved in selecting the replacements. But of those six members, three are chosen by banks and three are chosen by the Fed board in Washington. Workers and consumers are supposed to be represented on the board, but of the 108 members, 91 are from financial institutions and corporations. Just two are leaders of labor groups and another 15 represent non-profit organizations.
Fed Up has a list of demands to make the replacement process more transparent and to ensure the public has adequate representation within the central bank. They want a public schedule of the process, a list of criteria for how the replacements will be chosen, a chance for members to question the candidates, and public forums where citizens can discuss monetary policy with candidates and the search committee. These reforms, they hope, will keep presidents like Plosser and Fisher—who activists say are disconnected from the daily struggles of their constituents—out of office. “We need a president in Philadelphia who will listen to working people,” said Kati Slipp, the director of Pennsylvania Working Families. “Charles Plosser hasn’t been or he would not believe that our economy has really recovered.” In fact, Fed Up is already getting results. On Friday morning, the Philadelphia Fed announced that it was setting up an email to receive inquiries about the search process. “That would never have happened if this campaign hadn’t happened,” Slipp said. The campaign said it expected the same things from the Dallas Fed.
After Republicans destroyed Democrats in the midterms, many liberal commentators argued that a fresh agenda for raising wages could help the Democratic Party win back voters, particularly those in the white working class. But the problem isn’t that Democrats’ ideas—raising the minimum wage, investing in infrastructure and strengthening the safety net—won’t help middle- and lower-class Americans. It’s that the weak recovery has destroyed those ideas’ political salience. It’s a political problem much more than a policy one.
Such arguments almost always ignore monetary policy. After all, no one but Ron Paul fanatics care about the Federal Reserve. And the Fed is independent from the federal government. If a Democratic candidate’s economic message was to fill the FOMC with economists committed to keeping interest rates low or even adopting a different monetary policy regime altogether, voters would likely roll their eyes. It would be a political disaster. But given congressional gridlock, it might also be far more effective at boosting the recovery.
The Fed Up campaign isn’t going to change that. Millions of Americans will not suddenly realize that the most important economic actor in the United States is not the president or Congress but the Federal Reserve. They will not understand that some inflation is needed, especially right now, to convince businesses to invest and consumers to spend money to get the economy back going again. But the campaign may convince some Americans of the Fed’s importance. That’s why Cee Cee Butler, the former McDonald's worker who was fired Tuesday, and Jean Andre, the man who scouts out locations for films, spent a cold Friday morning outside the Fed.
“I just got out of the shelter two years ago and here I am about to be back in one. I’m not trying to go back there,” Butler said. “My daughter will never walk in my shoes. She doesn’t need to. That’s why my voice needs to be heard.”
Source
Puerto Rican Families Displaced in Florida by Hurricane María Recruited as Potential Voters
Puerto Rican Families Displaced in Florida by Hurricane María Recruited as Potential Voters
The Summer for Puerto Rico campaign is spearheaded by Julio López Varona, the Director of Puerto Rico Diaspora...
The Summer for Puerto Rico campaign is spearheaded by Julio López Varona, the Director of Puerto Rico Diaspora Campaigns at the Center for Popular Democracy. He emphasized that the focus of the campaign is on promoting political empowerment and literacy, by providing context on who are the lawmakers, and teaching communities about the effects of colonialism.
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When Work Creates Insecurity
Many of us think that any employment, even part time, provides a measure of security. This is not the case for the...
Many of us think that any employment, even part time, provides a measure of security. This is not the case for the millions of low-wage workers who are subject to unstable work schedules. In an effort to minimize labor costs (and with an egregious fixation with statistical models), businesses are hiring part time and using scheduling software that attempts to dynamically match labor hours with demand. This practice, known as ‘just-in-time’ work scheduling, shifts business risk to some of the most vulnerable workers and has serious consequences for families.
Store managers say that they prefer to hire workers with open availability, so employment is essentially contingent on open availability with no minimum guarantee of hours. Applicants are compelled to conceal outside commitments, including caregiver duties and their own medical needs. Workers who desperately need more hours are unable take a second job, since anything less than full availability is responded to punitively with reduced shifts. Workers are sometimes sent home early or without clocking in at all.
Unpredictable schedules means workers are unable to improve their future earnings through school or training. Over the long term, career trajectories are negatively affected because part-time workers receive lower hourly wages, less training, and fewer opportunities for job promotion. This structural barrier to economic mobility has the potential to create a permanent underclass of worker.
Volatile work schedules also mean volatile incomes, and added uncertainty in daily life. “The amount of hours and days I work changes on a weekly basis so I never know how much my check will be,” a worker testifying for the Fair Workweek Initiative explains. “That means I don’t know how much I can contribute to rent and bills, how much food I can buy for my daughter, or whether I can even afford to do laundry that week.”
Last fall, The Center for Law and Social Policy (CLASP) presented an audio conference to discuss updates to the social safety net to better accommodate volatile work schedules. During the conference, Jessica Webster from the Legal Services Advocacy Project in Minnesota related a story about a mother of one-year-old twins who was working as a security guard while receiving TANF. An unexpected drop in work hours caused interruption in her subsidized childcare, resulting in job loss and homelessness.
Called the “next new human right” by American Prospect, the issue of fair work schedules has gained a lot of traction over the past year. In 2014, a federal bill to address abusive scheduling practices died in committee and was reintroduced by Senator Warren in 2015 with substantially more sponsors. Advocates are not waiting for action from Capitol Hill, however. In 2014, the San Francisco Board of Supervisors passed the Retail Workers Bill of Rights, the first sweeping reforms addressing on-demand scheduling and part-time work in the country. In 2015, several jurisdictions introduced legislation designed specifically to address fair work scheduling.
The Center for Law and Social Policy (CLASP) maintains a repository for information pertaining to unstable work schedules and the University of Chicago hosts the Employment Instability, Family Wellbeing, and Social Policy Network (EINet), a group of academics and policymakers who are working to address these issues. The NationalWomen’s Law Center has presented testimony to congress and compiled fact sheets that spell out legal provisions as well as the effects on female-headed households.
Perhaps as a result of increased media coverage, some retailers announced an end to on-call shifts, with mixed results. In December, Kronos, one of the largest software developers in the work scheduling space, announced a partnership with the Center for Popular Democracy to build in features that take worker preference into account. Even more encouraging, some business leaders and academics are questioning whether minimizing labor costs is actually beneficial to the bottom line. Researchers at the Center for WorkLife Law assert that it is possible to improve scheduling efficiency, while considering the needs of workers.
What Community Groups Can Do While the fight for a fair work week continues, it is likely that many constituents of community organizations are facing this kind of uncertainty with both schedule and income. This may impede the work of community groups in many ways, from making it more complicated to determine appropriate affordable rent based on income to making it harder for residents to regularly show up for trainings, appointments, or organizing meetings.
Some of CLASP’s recommendations for adapting social service agencies to this new work environment can apply to community organizations as well. They include:
1. Offering blocks of call-in time, rather than specific appointments.
2. Using sliding fee schedules so that a temporary change in income doesn’t disqualify a family for services.
3. Estimating incomes over a longer time horizon or projecting future income with variability in mind.
4. Lengthening re-qualification periods for services.
5. Developing education and job-search tools that can be accessed intermittently online rather than holding workshops
6. Offering childcare with extended hours and vouchers that permit hours to be purchased in blocks of time that can vary from week to week.
7. Providing information on off-hours public transit options and income-based transportation fees, like those offered by the city of Seattle. Sincepoverty is now growing fastest in the suburbs, those living outside of urban centers have fewer transportation options, especially for non-standard shifts. Logistics can quickly get out of hand for those who commute to multiple part-time jobs or need pick up children from day care at a specific time.
Community-based organizations might also consider taking on an advocacy role with public agencies. When it comes to public benefits, just-in-time scheduling creates an irony that borders on the absurd: while unstable work hours compel many families to rely on public benefits, this same volatility often prevents access to those benefits. A small, temporary increase in income or decrease in work hours can trigger automatic sanctions or program disqualification.
Though under federal funding, accommodations would be allowed under the sorts of circumstances just-in-time scheduling creates, Webster noted that state agencies often fail to exercise this discretion, and clients and administrators alike are often not aware it is possible. State and local agencies can and should realign their processes to address this. But there is also an opportunity for those outside of public agencies to make a difference by organizing to inform recipients of their benefits rights. These efforts would save money by reducing “churn” (i.e., people kicked off benefits only to be put back on them again), improve outcomes for recipients, and remove disincentives to work. CLASP notes that these ideas have broad political support, which could be encouraging news for enterprising community practitioners who would like to develop a role in this area.
Fundamentally, we need to advance legal and cultural recognition that, especially for those who are resource-constrained, time is tremendously valuable, and that human needs are not nearly as scalable as mathematical models imply.
Source: Rooflines
Starbucks Falls Short After Pledging Better Labor Practices
Starbucks Falls Short After Pledging Better Labor Practices
But Starbucks has fallen short on these promises, according to interviews with five current or recent workers at...
But Starbucks has fallen short on these promises, according to interviews with five current or recent workers at several locations across the country. Most complained that they often receive their schedules one week or less in advance, and that the schedules vary substantially every few weeks. Two said their stores still practiced clopenings.
The complaints were documented more widely in a report released on Wednesday by the Center for Popular Democracy, a nonprofit that works with community groups, which gathered responses from some 200 self-identified baristas in the United States through the website Coworker.org.
“We’re the first to admit we have work to do,” said Jaime Riley, a company spokeswoman. “But we feel like we’ve made good progress, and that doesn’t align with what we’re seeing.” Ms. Riley maintained that all baristas now receive their schedules at least 10 days in advance.
Starbucks, whose chief executive, Howard Schultz, has long presented the brand as involving its customers and employees in something more meaningful than a basic economic transaction, has drawn fire for its workplace practices. But its struggles to address the concerns of its employees also open a window into a much larger problem.
In the last two years, the combination of a tight labor market and legal changes — from a rising minimum wage to fair-scheduling legislation that would discourage practices like clopenings — has raised labor costs for employers of low-skill workers in many parts of the country.
To help companies navigate this new landscape, a number of academics and labor advocates have urged a so-called good-jobs or high road approach, in which companies pay workers higher wages and grant them more stable hours, then recover the costs through higher productivity and lower turnover.
Even in service sectors where stores compete aggressively on price, “bad jobs are not a cost-driven necessity but a choice,” concluded Zeynep Ton, who teaches at the M.I.T. Sloan School of Management. “Investment in employees allows for excellent operational execution, which boosts sales and profits.”
And yet, as Professor Ton is careful to point out, it is easy to underestimate the radical nature of the change required for a company to reinvent itself as a good-jobs employer, even when the jobs it provides are not necessarily so bad.
The example of Starbucks illustrates the point. Some of the company’s actions reflect an impulse to treat its workers as more than mere cogs in a giant coffee-serving machine.
Starbucks allows part-timers who work a minimum of 20 hours a week to buy into its health insurance plan after 90 days. In April, it pledged to paythe full cost of tuition for them and full-time workers who pursued an online degree at Arizona State University. And workers promoted to shift supervisor — about one for every four to eight baristas — typically earn a few dollars an hour more than minimum wage.
On the question of scheduling, the company, like many large retail and food service operations, uses state-of-the-art software that forecasts store traffic and helps managers set staff levels accordingly, while trying to honor workers’ preferences regarding hours and availability.
Charles DeWitt is vice president of business development at Kronos, one of the leading scheduling software makers, which has worked with Starbucks. He said that using the software to schedule workers three weeks in advance typically was not much less accurate than using it to schedule workers one week in advance. “The single best predictor of tomorrow is store demand a year ago, though other factors can come into play,” Mr. DeWitt said. “If it’s Monday, then you want to look at Monday this week a year ago.”
(Mr. DeWitt and others involved with such software concede that there are exceptions, like stores that are growing or declining rapidly, and that predictions often get substantially better very close to the target date.)
But there has long been a central obstacle to change: the incentives of store managers, who are encouraged by company policies to err on the side of understaffing. This makes it more difficult to build continuity into workers’ schedules from week to week. It often turns peak hours into an exhausting frenzy that crimps morale and drives workers away.
“The mood lately has not been not superpositive; they’ve been cutting labor pretty drastically,” said Matthew Haskins, a shift supervisor at a Starbucks in Seattle. “There are many days when we find ourselves incredibly — not even a skeletal staff, just short-staffed.”
Mr. Haskins said that his store’s manager received an allotment of labor hours from her supervisor, and that the manager frequently exceeded it. But in the last month or so, she announced that she would make an effort to stay within the allotment. “From what I understand, probably someone higher up said ‘You need to stick to that,’” Mr. Haskins said. “I know it’s got her stressed out, too.”
Benton Stokes, who managed two separate Starbucks stores in Murfreesboro, Tenn., between 2005 and 2008, described a similar dynamic.
“We were given a certain number of labor hours, and we were supposed to schedule only that number in a given week,” Mr. Stokes said. “If I had to exceed my labor budget — and I was careful not to — I would have had to have a conversation” with the district manager. “If there were a couple of conversations, it would be a write-up,” he added.
The understaffing ethos sometimes manifests itself in company policies. For example, Starbucks stores are not required to have assistant managers, and many do without them.
Ciara Moran, who recently quit a job as a barista at a high-volume Starbucks in New Haven, Conn., complained of a “severe understaffing problem” that she blamed on high turnover and inadequate training. She partly attributed this to the store’s lack of an assistant manager. “We had issues that we’d try to take to her” — the store manager — “but she had so much on her plate we let it go,” Ms. Moran said. “Problems would escalate and become a big thing.”
In other cases, the scheduling and staffing problems at Starbucks appear to arise from the way individual managers handle their tight labor budgets.
Some of the baristas said that clopenings were virtually unheard-of at their stores, but LaTranese Sapp, a Starbucks barista in Lawrenceville, Ga., said clopenings occurred at her store because the manager trusted only a handful of workers to close, limiting scheduling options.
Ms. Riley, the Starbucks spokeswoman, said the store’s scheduling software required at least eight hours between shifts, but that workers could close and open consecutively if the shifts were more than eight hours apart.
There are alternatives to help avoid such results, according to Professor Ton’s research. One of the most promising is to create a mini work force of floating relief employees who call a central headquarters each morning, as the QuikTrip chain of convenience stores common in parts of the Midwest and South has done. Because store operations are standardized, relief employees can step in seamlessly.
“If a worker gets sick, what happens is you’ve lost a quarter of your work force,” Professor Ton said of companies with small stores that lack such contingency plans. “Now everybody else has to scramble to get things done.”
(Starbucks employees are often responsible for finding their own replacements when they are sick. “A lot of times when I’m really sick, it’s less work to work the shift than to call around everywhere,” said Kyle Weisse, an Atlanta barista.)
Starbucks, which vowed to improve workers’ quality of life after The New York Times published an account of a barista’s erratic schedule in 2014, is far from the only chain that has faltered in the effort to adjust from low road to high road.
In many cases, the imperative to minimize labor costs has been so deeply ingrained that it becomes difficult to sway managers, even when higher executives see the potential benefits.
Marshall L. Fisher, an expert on retailing at the Wharton School at the University of Pennsylvania, recalled working on a consulting assignment for a large retailer and identifying a few hundred stores where the company could benefit by adding labor. Executives signed onto the change, but managers essentially refused to execute it.
“The managers were afraid to use their hours,” he said. “They were so used to being judged on ‘Did they stay within a budget?’”
In many cases companies end up going out of business rather than adapt. Economists Daniel Aaronson, Eric French and Isaac Sorkin studied the response to large increases of the minimum wage in states like California, Illinois and Oregon in the 2000s. In most states, employment barely budged two years after the higher wage kicked in. But that masked dozens of suddenly uncompetitive stores that went under, and a roughly equal number of new stores that opened.
The fact that the defunct stores were replaced by new ones suggests that, in principle, they could have evolved. But they simply were not capable of pulling it off.
Source: New York Times
Commentary: I need the economy to give me a fair chance
Commentary: I need the economy to give me a fair chance
I'VE ALWAYS enjoyed talking with people, and, as long as I can remember, I wanted to work in the hotel industry. It's...
I'VE ALWAYS enjoyed talking with people, and, as long as I can remember, I wanted to work in the hotel industry. It's been my dream to work with guests at the front desk to make sure they have the best experience possible.
As an African-American woman, I knew that lucky breaks weren't going to be handed to me, so I did everything I could to achieve my dreams. I went to school and got my bachelor's degree in hospitality and hotel management in 2000 from the Indiana University of Pennsylvania.
However, apart from a brief internship after college at the Best Western and a year at the Hilton working at the switchboard, which was almost a decade ago, I haven't been able to find work in my chosen field - a field in which I have a degree.
I've heard people say the recession is over because the unemployment rate is about 5 percent. But I can tell you that things are still really bad in the black community. Currently, unemployment for blacks is about 9 percent.
I've always been politically active and serve as the judge of elections in my voting district. So when I heard about a campaign that calls on the Federal Reserve to ensure that everybody gets decent paying work, including black folks, I was eager to join.
When I got my degree 16 years ago, the economy was in decent shape. Armed with my degree, the internship experience and good recommendations, I didn't expect to have any problems getting a job in a hotel. I applied to two dozen jobs and, after being turned down at all of them, I had to take other kinds of jobs in food service or customer service.
Finally, after many years, I got my switchboard job at the Hilton. Even though I was getting only $10 an hour, I was excited to finally be working at a hotel and thought I would just stay there and work my way up. But the recession hit in 2008, and I was laid off a year later.
That's when things became really tough. The recession hit African-American women, even college-educated ones like me, particularly hard. I've worked on and off since 2008, but finding good work has become almost impossible. At one point, I was traveling two hours each way to get to my job at a state-run liquor store.
I eventually had to quit when I suffered severe medical issues. I was diagnosed with a neurological condition and uterine fibroids, all within a matter of months. A couple of years ago, I was able to work again and joined a job skills program. The program placed me at a job where I work part-time - only 20 hours a week - as a cashier and food server at a university dining hall.
The unemployment rate apparently counts people like me as employed, even though I don't work enough hours to pay my bills. I'm overqualified and underpaid (I earn $11.25 an hour), but since I'm working - even though I'm still on Medicaid and food stamps - I'm used as evidence to say the recession is over.
Involuntary part-time unemployment is a more accurate figure to look at. It's over 15 percent for blacks! That's a whole lot of people who aren't making ends meet, but are still being counted as working.
People need to know that the Federal Reserve has incredible power over the economy and people's lives. It might seem very abstract, but it's not. If the Federal Reserve keeps interest rates low, the economy will continue to grow and people like me will be able to find full-time jobs or better paying work. If it raises rates because it claims the economy is doing well, it will be tougher for everyone to find jobs.
I'm going to Jackson Hole, Wyo., next week to join a protest against the Federal Reserve, which holds a symposium there every year. We want the president of the Philadelphia Fed, Patrick Harker, and the rest of the Fed, to see what regular folks go through beyond the numbers in the headlines.
Every week, I still go online to look for jobs at large hotel chains. I know that one of these days I will work at a hotel again. I just need the economy to give me a fair chance.
Salwa Shabazz lives in Philadelphia and is a member of the Fed Up campaign, an initiative of the Center for Popular Democracy.
By Salwa Shabazz
Source
Nina Tassler, Denise Di Novi Launch New Studio PatMa Productions
The studio has already set up partnerships with a number of organizations promoting diversity, inclusion, and human...
The studio has already set up partnerships with a number of organizations promoting diversity, inclusion, and human rights, among them the Geena Davis Institute on Gender in Media, the Center for Popular Democracy, and Planned Parenthood.
Read the full article here.
Fed Splits Evident Amid Wait for Yellen: Jackson Hole Journal
Bloomberg News - August 22, 2014, by Jeff Kearns, Simon Kennedy and Michael McKee - Divisions within the...
Bloomberg News - August 22, 2014, by Jeff Kearns, Simon Kennedy and Michael McKee - Divisions within the Federal Reserve over how long to keep easy monetary policy are already in evidence in Wyoming as investors prepare for Chair Janet Yellen’s keynote speech.
Fed Bank of St. Louis President James Bullard told Bloomberg Radio that the U.S. central bank may begin tightening monetary policy earlier than officials previously expected.
“The evidence is leading toward an earlier increase than would have been in the works earlier this year,” said Bullard. “Labor markets have improved quite a bit relative to what the committee was thinking.”
Bullard spoke after Kansas City Fed President Esther George told Bloomberg Television that broad-based employment gains suggest the U.S. economy is strong enough to withstand higher interest rates. Philadelphia Fed President Charles Plosser, who voted against the Fed’s policy statement last month, told CNBC he’s concerned about the Fed not adjusting policy appropriately.
By contrast, Atlanta Fed President Dennis Lockhart urged more patience, warning in a separate interview with Bloomberg Radio against “moving prematurely and snuffing out some progress.”
* * *
Robots don’t steal jobs, the U.S. labor market is less flexible than it was and workers haven’t suffered unprecedented periods out of work.
Photographer: Bradly Boner/Bloomberg
Fed Chair Janet Yellen arrived at the dinner to be greeted by about 10 people wearing bright green T-shirts emblazoned with “What Recovery?” and carrying placards with labor market data. Close
Those are among the conclusions of papers being presented at the symposium. Here is a review of their contents, which can be read in full on the Kansas City Fed’s website.
Robots and computers don’t steal as many jobs as some believe, and automation actually benefits many workers, Massachusetts Institute of Technology Professor David Autor said in his paper.
A key reason humans aren’t obsolete yet is that simple tasks such as visually identifying a chair, which any child can do, aren’t so easy for engineers to teach to computers, Autor said.
“Journalists and expert commentators overstate the extent of machine substitution for human labor and ignore the strong complementarities that increase productivity, raise earnings, and augment demand for skilled labor,” he wrote. “Challenges to substituting machines for workers in tasks requiring flexibility, judgment, and common sense remain immense.”
* * *
The U.S. labor market became less fluid in recent decades partly because of an aging workforce, a shift to older businesses, and the spread of occupational licensing and certification, economists Steven J. Davis and John Haltiwanger wrote in their paper.
The economists define labor market fluidity as “flows of jobs and workers across employers.” The paper found the U.S. “underwent a large, broad-based decline in the pace of labor market flows in recent decades.”
“An aging workforce is a factor behind the slowdown of worker reallocation,” the paper said.
* * *
U.S. workers in the aftermath of the 2007-2009 recession haven’t experienced unprecedentedly long bouts of non-employment, according to a paper by economists Jae Song and Till von Wachter.
Their findings “suggest that the potential for hysteresis in the aftermath of the Great Recession is moderate,” the paper said. Hysteresis posits that people out of work for too long have a harder time finding work, leading to a persistent decline in the employment-to-population rate
* * *
Policy makers would benefit from a better understanding of labor markets, economist Giuseppe Bertola argued in a paper that weighed the impact of rules making those markets rigid or flexible.
Rules that protect workers from job losses and provide more generous unemployment benefits can soften and smooth shocks to the economy, said Bertola.
* * *
George opened the symposium late yesterday by putting the presenters on the spot.
The last conference devoted to labor markets was 20 years ago, George told the group of almost 200 as they ate steak and salmon dinners beneath elk antler chandeliers.
The presenters and discussants back then included five future Nobel Prize winners and two academics who would go on to be central bankers: Bank of England Deputy Governor Charles Bean and Stanley Fischer, the Bank of Israel governor who became Fed vice chairman in June. Fischer sat at one of the front tables last night.
“So for those of you that will be on the program,” George said to laughter, “We’re either setting you up for a blessing or a curse.”
This year’s topic is “Re-Inventing Labor Market Dynamics.” In 1994 it was “Reducing Unemployment: Current Issues and Policy Options.”
George said she went through the 1994 proceedings only to find central bankers and economists are still grappling with some of the same basic issues today.
“I saw that the discussion included things like the decline in demand for low-skilled workers due to technology and the challenge of the long-term unemployment,” George said. “And questions were raised by that symposium, as they are today, about the usefulness of the unemployment rate as a measure of economic slack.”
It reads like a list of the most vexing issues the Fed faces now and will be attempting to tackle today and tomorrow.
* * *
Fed Chair Janet Yellen arrived at the dinner to be greeted by about 10 people wearing bright green T-shirts emblazoned with “What Recovery?” and carrying placards with labor market data.
The protesters had traveled to Wyoming to highlight the plight of “struggling workers from around the country” who want the Fed to pursue “full employment that reduces poverty and expands the middle class,” according to the Center for Popular Democracy, a Brooklyn-based organization. The backs of their T-shirts had a graph comparing the performance of wage growth among the top 1 percent and the rest.
Ady Barkan, a staff attorney with the group, spoke briefly with Yellen at the door of the lodge’s Explorers Room. “She said she understands the issues we’re talking about and is doing everything they can,” he said, after she had entered the room.
Yellen has regularly cited weak labor markets as a scourge of the economy she’s trying to boost with easy monetary policy.
Shemethia Butler, who works part time at a McDonald’s Corp. restaurant in Washington, was one of those to make the trip. The 34-year-old said that while she isn’t up on monetary policy, she wants policy makers to know she fears higher interest rates for her and her community. She said she works 25 to 35 hours a week for $9.50 an hour at a job she’s had for just over a year. Before that she was unemployed for two years.
“There’s no recovery,” Butler said. “The economy is broken because there aren’t enough jobs for people like me.”
* * *
Yellen’s speech will be the main event of the first full day of the conference. She will speak at 8 a.m. Mountain Time today.
Her address will be followed by the presentation of the paper by Davis and Haltiwanger.
Autor will then discuss job polarization before a panel on demographics featuring Karen Eggleston of Stanford University, David Lam of the University of Michigan and Ronald Lee of the University of California, Berkeley.
European Central Bank President Mario Draghi will deliver the keynote luncheon speech.
Tomorrow, Von Wachter and then Bertola will present their papers.
The final panel will provide an overview of labor markets and monetary policy. It will include Bank of England Deputy Governor Ben Broadbent, Bank of Japan Governor Haruhiko Kuroda and Brazilian central bank chief Alexandre Tombini.
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The conference is lacking Wall Street participants for the first time.
An exception is Jacob Frenkel, chairman of JPMorgan Chase International, who is attending in his capacity of chairman of the board of trustees of the Group of 30, a private-sector group of mainly former policy makers which advises central banks and governments. Tim Adams, president of the Institute of International Finance, is also present.
Draghi, Kuroda and Bank of Canada Governor Stephen Poloz provide international central banking firepower.
Among academics in attendance are Alan Blinder of Princeton University, Harvard University’s Kenneth Rogoff and Martin Feldstein, and John Taylor of Stanford University. President Barack Obama’s administration is represented by Jason Furman, chairman of the Council of Economic Advisers and Jeffrey Zients, director of the National Economic Council.
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The backdrop for the symposium and Yellen’s speech was set by the release of the minutes from the Federal Open Market Committee’s July discussions.
Fed officials in July raised the possibility they might raise rates sooner than anticipated, as they neared agreement on an exit strategy. Some participants were “increasingly uncomfortable” with the pledge to keep interest rates low for a “considerable period,” the minutes said.
At the same time, “many participants” still saw “a larger gap between current labor market conditions and those consistent with their assessments of normal levels of labor utilization.”
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Some recent stories on the U.S. labor market:
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The opening day of Jackson Hole has been associated with stock-market gains in each of the past seven years. The Standard & Poor’s 500 Index rose an average 1.3 percent on each of them from 2007 to 2012, following speeches by then-Chairman Ben S. Bernanke, who skipped last year’s conference.
The biggest climb was the 1.9 percent of 2009, when Bernanke said the economy appeared to be “leveling out.” Gains also followed his signals of 2010 and 2012 that fresh asset-purchases were imminent.
The bar is therefore set high for Yellen who identifies slack labor markets as a reason for easy monetary policy. Economist Ed Yardeni says the “Fairy Godmother of the Bull Market” won’t let us down.
Still, Steven Englander of Citigroup Inc. says that because “dovishness is increasingly anticipated,” Yellen may have to intensify her support for low interest rates if risk-assets such as stocks are to rally anew.
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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,...
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
Charter Financing: Study Finds Too Little Accountability in California
San Jose Mercury News - April 9, 2014, by Raymond Blanchard - Every parent wishes their children will reach their...
San Jose Mercury News - April 9, 2014, by Raymond Blanchard - Every parent wishes their children will reach their highest potential to live the life they choose. We do everything in our power to make this wish a reality, and we know an extraordinary education is essential.
Fulfilling this wish is difficult, particularly in the Bay Area. When California, the eighth largest economy in the world, ranks 49th among the states in school spending, we know it's difficult for our schools to provide the best education possible.
That's why I enrolled my children in Gilroy Prep Charter School, a Navigator school that achieved the highest API score -- 978 -- in California for a first-year charter school in 2011-12. I also served on the Navigator Board for three years but recently resigned due to transparency and accountability concerns with the Charter Management Organization (CMO), a service some charters use to manage their finances.
Now I find that my concerns were not an aberration. A recent study by the Center for Popular Democracy (linked with this article at mercurynews.com/opinion) found mismanagement of funds, fraud and abuse to the tune of $80 billion, or $160,000 per child, across all California charter schools, and our state could lose another $100 million in 2015 to charter school fraud. That's enough money to pay full tuition and board for every student in California at a University of California school for four years.
The report found that charter schools in California undergo little monitoring of finances, and the districts that oversee charter schools do not have the resources to provide sufficient oversight. Over my three years on the Navigator board, the local districts only attended seven board meetings.
Charter schools were created to bridge the achievement gap by granting increased freedom to administrators, teachers and parents to innovate without being subject to most California education laws. I support charter schools and think many of them provide an excellent education: 60 percent of Santa Clara County charter schools outperform the districts in which they reside. As a former entrepreneur and venture investor, I am all for freedom, innovation, competition and choice.
But the charter school financial model is at risk of failing.
Charter Management Organizations use public money with little public accountability and transparency, and that's starting to cause material financial problems. Not all charter schools have a CMO and run very well on their own, and some CMO-run charter schools are clearly better than others.
In 2014, charter schools authorized by the Santa Clara County Board of Education received $42 million in public revenue, excluding the millions of dollars in philanthropic investments. Some CMOs charge the schools they manage up to 25 percent of school revenue, while our local district charges about 6 percent per school.
In Santa Clara County, 73 percent of charter schools spent $1,287 less per student than their district school peers in 2012-2013. That's worth a musical instrument, computer, books, iPad and field trip per child. Where does the money go? It's not clear, and that's a problem.
To avoid financial risks, charter schools should be held to the same types of regulations as other public schools and the boards that oversee them. All public schools should be given the same freedoms charter schools have to innovate.
My wish is that all public schools be excellent educational institutions and stewards of our tax money. However, we must improve transparency and accountability. I think this is a wish we can all agree on.
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8 days ago
8 days ago