Claims of Racism at Zara Portray the Retail Industry at Its Worst
The retail industry is one the largest sources of new jobs in the US economy, employing 15 million Americans and...
The retail industry is one the largest sources of new jobs in the US economy, employing 15 million Americans and accounting for 1 out of every 6 private sector jobs added to the economy last year. Yet as my colleague Catherine Ruetschlin and NAACP’s Dedrick Asante-Muhammad found in a study published earlier this month, common retail practices perpetuate racial inequality, fostering occupational segregation, low pay, unstable schedules, and involuntary part-time work that disproportionately harm people of color in the retail workforce.
This week a new report casts a spotlight on employment discrimination at a particular retailer: Zara, a fairly new clothing chain in the United States which nevertheless is part of the world’s largest fashion retail company. Based on interviews of 251 Zara employees in New York City, researchers at the Center for Popular Democracy uncovered troubling pattern of concerns about racial discrimination. They find that Black employees are far more likely than other workers to be assigned work hours they find unsatisfactory and that darker skinned employees report they are least likely to be promoted. The report documents a widespread perception of managerial favoritism, with employees of color being treated more harshly and offered less leeway when requesting a sick day or coming in to work late. Darker skinned workers are disproportionately employed in lower-prestige positions in the back of the store. The company rejects the findings, asserting that it does “not tolerate discrimination of any form.”
Yet accusations of racism on the sales floor are a counterpoint to a recent lawsuit alleging discrimination within Zara’s corporate structure, including claims that senior executives at Zara regularly used racial slurs and exchanged racist emails while discriminating against a corporate attorney who was Jewish and gay. The company has also faced scrutiny forselling racially and ethnically offensive clothing and accessories.
According the new report, Zara employees have also witnessed racial profiling of customers, with Black shoppers far more likely to be targeted as potential thieves than white customers. Here too, the allegations fit into a deplorable pattern within the retail industry: last year, major New York retailers Macy’s and Barney’s entered into settlementswith the office of New York Attorney General Eric Schneiderman, paying hundreds of thousands of dollars to settle allegations of racial profiling and false detentions and agreeing to take concrete steps to prevent discrimination against shoppers of color.
But while lawsuits and enforcement actions can make a difference, Zara and other retailers must not wait for legal action to remedy conditions that disadvantage workers and shoppers of color. The NAACP/Demos report highlights how offering livable wages and improving employee schedules would reduce racial disparities even as low-paid employees of all races and ethnicities see benefits. And the Center for Popular Democracy report suggests that Zara allow its New York workers “to choose to represent themselves in grievances through real bargaining agents, such as labor unions, without interference.” By directly empowering employees to push for fair treatment, a union could make the most enduring change of all.
Source: Demos
Activists offer ideas to police charter schools
A pair of activist groups, the Alliance for Quality Education and Center for Popular Democracy, is out with a guide —...
A pair of activist groups, the Alliance for Quality Education and Center for Popular Democracy, is out with a guide — or rather suggestions — for better policing and monitoring finances of the state’s charter schools, which serve some 90,000 students, mostly in New York City.
The report states that since charters aren’t subject to all the reporting requirements required of public schools, there has been waste and abuse.
It contends the state could lose $54 million to fraud at charter schools this year, based on an accounting system used by fraud examiners that assumes 5 percent of that kind of mismanagement and tomfoolery.
To be sure, these groups are not exactly charter-friendly: AQE is funded in part by the state teachers union; the Center for Popular Democracy is also aligned with the national teachers union, AFT, among other groups.
They want a moratorium on charter expansion — which could become a high-profile issue during the next legislative session.
Here is their release and report: One note: some of these problems outlined below including the issues at Harriett Tubman Charter School occurred several years ago and under different administrations.
Today, the Center for Popular Democracy and Alliance for Quality Education released a report titled Risking Public Money: New York Charter School Fraud that reveals vulnerabilities in the state’s charter oversight system that could potentially cost New York state taxpayers as much as $54 million in charter fraud this year alone.
“Our governor and other school privatization advocates have pushed relentlessly to expand the charter industry at the expense of public school communities in New York State,” said Billy Easton, Executive Director of the Alliance for Quality Education. “But the proliferation of charters hasn’t been matched by the oversight needed to ensure that public money intended for students doesn’t instead get lost to fraud, waste and abuse.”
The report finds that state agencies have audited just a quarter of New York’s more than 250 charter schools since 2005, largely relying on them to police themselves instead. Yet in a startling 95 percent of the charters examined, auditors found mismanagement and internal control deficiencies that have occasioned $28.2 million in known fraud, waste, or mismanagement. Recognizing that the industry cannot be trusted to monitor itself for problems, the report’s authors have offered common sense interventions to remedy the problem, and have called for a moratorium on charter expansion until meaningful public oversight has been put in place.
“We can’t afford to have a system that fails to cull the fraudulent charter operators from the honest ones.” said Kyle Serrette, Education Director at the Center for Popular Democracy. “Given that New York spends over $1.5 billion on charter schools and more than 90,000 children are enrolled, a lot is at stake. We can’t afford to wait for tens or hundreds of millions more dollars to be lost before policymakers address this glaring issue.”
Here are only a few statewide examples among the dozens in the report:
IN NEW YORK CITY: Harriett Tubman Charter School issued credit cards to its executive director and its director of operation. They charge more than $75,000 in less than two years. The charges were never approved or explained.
IN LONG ISLAND: Roosevelt Children’s Academy Charter School paid four vendor a total of $521,197 for significant public work and purchase contracts without fair competition.
IN ALBANY: Albany Commuity Charter School lost between $207,000 to $2.3 million by purchasing a site for its elementary school rather than leasing it.
IN ROCHESTER: Eugenio Maria de Hostos Charter School failed to enter into a competitive bidding process for several instructional contracts. Instead the school awarded contracts to board members, relatives and other related parties.
IN BUFFALO: Oracle Charter High School entered a 15-year building lease with Oracle Building Corporation, agreeing to pay them more than $5 million at a 20 percent interest rate.
Source: Times Union
‘Patriot’ Dimon dodges calls to disavow Trump policies
‘Patriot’ Dimon dodges calls to disavow Trump policies
By Ben McLannahan Jamie Dimon endured a rough ride at the annual meeting of America’s biggest bank on Tuesday morning,...
By Ben McLannahan
Jamie Dimon endured a rough ride at the annual meeting of America’s biggest bank on Tuesday morning, as shareholders repeatedly attacked the JPMorgan Chase chief over his ties to the administration of Donald Trump.
In December Mr Dimon was named chairman of the Business Roundtable, a group of almost 200 CEOs which is among the most prominent lobbying groups in Washington. Mr Dimon, chief executive of JPMorgan for the past 11 years and chairman for 10, is also a member of Mr Trump’s strategic and policy forum, which meets regularly to shape the economic agenda.
At the meeting in Wilmington, Delaware, a succession of shareholders challenged Mr Dimon to publicly disavow some of Mr Trump’s policies, such as his curbs on immigration from predominantly Muslim countries and his building a wall on the border with Mexico. One shareholder noted that users had sent more than 4000 messages to a website, backersofhate.org, urging Mr Dimon to “distance himself from hateful policies of human suffering”.
After staying silent throughout several speeches from the floor, Mr Dimon defended the bank’s record on Mexico, its support for lesbian, gay, bisexual and transgender people, and its funding of private prisons.
Finally, he said of Mr Trump: “He is the president of the United States, he is the pilot flying the aeroplane. I’d try to help any president of the US because I’m a patriot. That does not mean I agree with every policy he is trying to implement.”
Mr Dimon has long been the most outspoken of the big-bank chiefs in the US, often using his shareholder letter as a platform for taking positions on matters of public policy, and for challenging the regulatory framework put in place since the 2008 crisis.
In the weeks after the presidential election, the 61 year old was approached by members of Mr Trump’s transition team to serve as Treasury secretary but declined, saying he was unsuited to the role, according to people familiar with the discussions.
As hostile questioning resumed after his remarks at the Tuesday meeting, Mr Dimon tried to lighten the mood, saying “you’re starting to hurt my feelings”. The shareholder admonished him by saying that just by hearing him out, the chief executive would earn more than $100.
“I hope it’s worth it!” said Mr Dimon, who was paid $28m last year.
“This is not a laughing matter,” the shareholder replied.
The meeting stood in contrast to the peaceful gathering at the Goldman Sachs building in Jersey City at the end of last month, when chief executive Lloyd Blankfein faced just two questions from the floor, both of them friendly. Mr Blankfein, who is also chairman of the board, closed the meeting within just 24 minutes.
Mr Dimon wrapped up Tuesday’s proceedings by saying the entire board “takes this feedback seriously”.
Ana Maria Archila, co-executive director of the Center for Popular Democracy, said after the meeting that until Mr Dimon takes a stronger stand her organisation would continue to associate JPMorgan Chase with Mr Trump’s “anti-immigration” agenda.
Ms Archila arrived in America 20 years ago to reunite with her father, who had fled political violence in Colombia.
“I don’t think we have a plan to really inflict economic damages on the bank just yet,” she said. “But what we do have a plan for, is to force them to clarify whose side they’re on.”
Activists: Fed Has Power to Spur Recovery in Poor Communities
The Charlotte Post - March 6, 2015, by Herbert White - America’s economy may be in recovery, but Simone McCray can’t...
The Charlotte Post - March 6, 2015, by Herbert White - America’s economy may be in recovery, but Simone McCray can’t see it.
McCray works at a Charlotte warehouse where she earns $8.10 an hour and lives with family to stretch her budget. A 2010 UNC Charlotte graduate with a degree in psychology, she has yet to land a job in that field.
“You don’t think you’re going to make $8.10 when you go to college,” she said. “That is not what they tell you.”More Americans are working than before the Great Recession of 2008, but African Americans are lagging. Figures released by the U.S. Department of Labor Friday showed the national unemployment rate fell to 5.5 percent in February, an improvement over the previous month.“With another strong employment report, we have now seen 12 straight months of private-sector job gains above 200,000 -- the first time that has happened since 1977,” said Jason Furman, chairman of the Council of Economic Advisers. “Moreover, 2014 was the best year for job growth since the late 1990s and 2015 has continued at this pace. But additional steps are needed to continue strengthening wages for the middle class.”But for African Americans, the jobless rate is double that of whites and the wage gap between the ethnic groups is getting wider.The Federal Reserve, which sets national policy on interest rates, is debating whether to boost the rate as a hedge against inflation. Progressive activists, however, are pushing the Fed to hold the line, arguing low rates will spur a jobs rebound, especially for low-income Americans.“Don’t put any brakes on the economic recovery,” said Pat McCoy, director of Action NC, which held a press conference Thursday to press the Fed. “Not only has it not yet been a full recovery, but in community of color, particularly in the African American community, unemployment rates, underemployment rates remain extremely high.”A study authored by the Center For Popular Democracy found that women and people of color are more likely to struggle to find work that pays a living wage. African Americans are especially hard hit with unemployment rates double the nation as a whole and plummeting wages.“Creating a strong American economy must include prioritizing a genuine recovery for the African American community,” the report summarizes.McCray wants to get in on the recovery. Saddled with debt from student loans, she’s looking for work that will allow her to meet financial obligations. Until then, she’s struggling to make ends meet.“My student loans are going to start going back into repayment and you have to have a way to repay them,” she said. “With jobs that are just above minimum wage, it’s kind of hard to stay afloat and pay your student loans, so you have to stay with family longer and not be out on your own and be independent sooner.”The Fed can help, activists insist, by resisting calls to raise interest rates. Corporate America and conservatives are pushing for an increase to prevent inflation, which is the simultaneous increase in consumer prices and devaluation of currency.“We need to continue to stimulate the economy through low-interest rates in order to serve these communities that need recovery,” McCoy said.As the Fed wrestle with the pros and cons of raising rates, Americans struggling to find work with a living wage are yet to be part of the nation’s limited recovery. Without a robust economic program, millions will be left out.“Only by pursuing genuine full employment will the Fed ensure that the recovery reaches Main Street and Martin Luther King Boulevard – and communities of working people throughout the country,” the CPD report’s authors wrote. “As the Fed makes crucial monetary policy decisions in the months and years to come, it must ensure that all communities can share in the prosperity of a functional economy.”
Source
What You Need To Know About The Special Election In Arizona
What You Need To Know About The Special Election In Arizona
Ady Barkan, an ALS-stricken progressive activist whose “Be A Hero” initiative targets Republicans who voted for, or...
Ady Barkan, an ALS-stricken progressive activist whose “Be A Hero” initiative targets Republicans who voted for, or back the tax cuts, traveled to the district to campaign on Tipirneni’s behalf. While in Arizona, Barkan, who will need Medicare as his body deteriorates, asked Lesko to respond to the stated intentions of several Republican leaders, including House Speaker Ryan and White House budget director Mick Mulvaney, to seek major cuts to Social Security, Medicare and Medicaid.
Read the full article here.
Push for Immigrants to Become Citizens
Mayors of New York, Los Angeles and Chicago Launch 'Cities for Citizenship' Wall Street Journal...
Wall Street Journal, Michael Howard Saul, September 17, 2014 - The mayors of the nation's three largest cities—New York, Los Angeles and Chicago—plan to launch a new effort on Wednesday to increase citizenship among legal permanent residents, an effort officials hope will spread across the country.
The initiative, titled "Cities for Citizenship," will help the three cities expand naturalization programs and other ventures dedicated to helping immigrants secure their financial footing through counseling, legal assistance and microloans.
Citigroup, the founding corporate partner, is contributing more than $1.1 million.
The initiative comes as the number of legal immigrants becoming citizens is on the rise. Last year, naturalizations in the U.S. increased to 779,929, up nearly 3% from 2012, according to the U.S. Department of Homeland Security, which oversees immigration.
In the New York metro area, naturalizations have increased at the greatest pace among metropolitan areas nationwide, up roughly 37% in 2013 compared with 2011. In the Los Angeles metro area, naturalizations climbed about 12% between 2011 and 2013, while in the metro region that includes Chicago, the number of naturalizations has remained stagnant, mirroring many other places nationwide.
"Citizenship is a powerful poverty-fighting tool because it brings huge economic benefits to families and to communities," New York City Mayor Bill de Blasio said. "More than that, it helps keep families together."
A report to be released Wednesday—from the Center for Popular Democracy and the National Partnership for New Americans, two nonprofit groups, and the University of Southern California—shows the economic benefit that citizenship brings to local economies.
According to the report, the increase in earnings to immigrants, who otherwise wouldn't have become citizens, is estimated to add between $1.8 and $4.1 billion over 10 years to New York's economy; between $1.6 billion and $2.8 billion in Los Angeles; and between $1 billion and $1.6 billion in Chicago.
Among the nearly nine million permanent residents nationwide who are eligible for citizenship, there are currently about 450,000 New Yorkers who are "one step away" from becoming naturalized, Mr. de Blasio said. Many haven't completed the process because of the cost, Mr. de Blasio said, but the new initiative will help them navigate the legal process and obtain financial assistance.
Chicago Mayor Rahm Emanuel said his goal is to make Chicago "the most immigrant-friendly" city in the country.
Almost half of all new businesses are started by immigrants, Mr. Emanuel said. "So, you can't be pro-small business and anti-immigrant," he said. "They're inconsistent."
Bob Annibale, global director of community development at Citigroup, said statistics clearly show poverty levels are much higher among foreign-born residents than those who have become citizens.
"So, there really is a value in helping people not only to build a national identity, but with that, their financial identity," Mr. Annibale said. "And that's sort of the role where we felt we could be part of this."
As part of the initiative, the Mayor's Office of Immigrant Affairs in New York City will issue a study on the economic impact of citizenship programs for mayors across the country in hopes of demonstrating the value of funding naturalization programs as a way to combat poverty.
"Immigrants are the backbone of our economy," Los Angeles Mayor Eric Garcetti said. "It's time we encouraged their successful integration into our social and political tapestry to continue boosting our economy and not stand in the way of it."
Source: The Wall Street Journal
Fed Chair Janet Yellen: Slowdown in job market likely ‘transitory’
Fed Chair Janet Yellen: Slowdown in job market likely ‘transitory’
Federal Reserve Board Chair Janet L. Yellen expressed hope Tuesday morning that the slowdown in the U.S. job market...
Federal Reserve Board Chair Janet L. Yellen expressed hope Tuesday morning that the slowdown in the U.S. job market would prove temporary, but she emphasized that the central bank would be cautious in raising interest rates again.
Yellen, testifying before the Senate Banking, Housing and Urban Affairs Committee, acknowledged that hiring has dropped off sharply in recent months, but she also pointed to early signs that wages are beginning to rise after years of stagnation. She said she is "optimistic" that the progress in employment will continue.
"We believe that will turn around, expect it to turn around, but we are taking a cautious approach … to make sure that expectation is borne out," Yellen told lawmakers.
The Fed is responsible for charting the course for the nation’s economy, with the dual mission to keep prices stable and strengthen employment. It does that by adjusting the influential federal funds rate. A higher rate helps curb inflation by making borrowing money more expensive, which discourages spending and investment and reins in economic growth. A lower rate means that money is cheap, stimulating purchases by households and businesses. That helps boost employment and speeds up the economy.
The Fed chief's assessment comes less than a week after the Fed unanimously voted to leave its benchmark interest rate unchanged. The central bank raised rates in December for the first time since the Great Recession but has not done so again amid persistent concerns about the health of the global economy.
Yellen said Tuesday that there is still "considerable uncertainty" over her outlook, with such risks as slow growth at home, turbulence in China and volatility in financial markets.
The most immediate threat comes from across the Atlantic Ocean, where Britain will vote Thursday on whether to remain in the European Union. A decision to exit — popularly known as Brexit — would upend Britain's four-decade partnership with the continent and throw the future of Europe’s open market into doubt.
Already, the British pound has been on a roller coaster as the probability of departure shifts with each poll. International policymakers have warned that a decision to leave would lower economic growth in the country by more than 5 percent over the next three years and potentially ripple across the rest of the world.
"A U.K. vote to exit the European Union could have significant economic repercussions," Yellen said Tuesday.
In the aftermath of the 2008 financial crisis, the Fed slashed its target rate all the way to zero and pumped trillions of dollars into the economy in a bid to bolster the American recovery. More than seven years later, it is finally in the process of withdrawing that support.
The first move was in December, when the Fed nudged its target rate up to a range of 0.25 to 0.5 percent. At the time, officials anticipated raising rates four times this year, but the uncertainty in the global economy has forced them to downgrade that projection. Most Fed officials now think only two rate hikes are warranted this year, and a growing number think only one will be necessary.
That shift in thinking at the central bank is evident in Yellen’s own statements. Just last month, she had signaled that the central bank could raise rates "probably in the coming months." But Yellen dropped the reference in a speech early this month, after disappointing government data showed employers added just 38,000 jobs in May. And last week, she told reporters that she is "not comfortable to say it's in the next meeting or two."
On Tuesday, Yellen made the case for caution. Because rates are already so low, the Fed has limited room to reduce them further if the economy were to weaken, she said. Moving gradually also gives the central bank time to assess whether its forecast of continued economic improvement will come true.
"Our cautious approach to adjusting monetary policy remains appropriate," she said.
The Fed has faced criticism from both the left and the right recently over its governance. Sen. Richard C. Shelby (R-Ala.), chairman of the Banking Committee, opened the hearing Tuesday by calling on the Fed to follow more stringent rules for setting policy and to explain when it deviates.
"The desire to preserve the Fed’s independence, however, should not preclude consideration of additional measures to increase the transparency of the board’s actions," he said.
Meanwhile, Sen. Sherrod Brown (D-Ohio) focused on diversity within the Fed’s top ranks. Last month, more than 100 lawmakers sent a letter to Yellen arguing for more minority representation among its leadership.
The central bank is led by a board of governors based in Washington and 12 regional bank presidents scattered throughout the country. The governors are appointed by the president and confirmed by the Senate, but regional bank leaders are chosen by local boards of directors.
Those officials tend to be white men. Yellen is the first woman to serve as chair in the central bank’s 101-year history. Only three Fed governors have been African American, and there have been no black regional bank presidents. No one now in the top brass is Hispanic.
By Ylan Q. Mui
Source
Another Victory for Workers in Seattle—This Time It’s Their Schedules
Another Victory for Workers in Seattle—This Time It’s Their Schedules
Although she was hired on as a full-time employee at Domino’s Pizza, Crystal Thompson had a schedule that became...
Although she was hired on as a full-time employee at Domino’s Pizza, Crystal Thompson had a schedule that became erratic and unreliable shortly after she began working there in 2009. One day she’d start at 9 a.m. and work until 9 p.m.; and then she’d get a call asking her to work the morning shift the next day.
“It’s so hard trying to plan your life.”
The single mother of three relied on the job to pay over $1,200 a month in rent, utilities, food, and child care, but during the most volatile weeks, she was lucky if she got even 20 hours in shifts. Moreover, it was difficult to find a babysitter or make doctor’s appointments when she sometimes received her schedule only a day in advance. At a loss, Thompson moved one of her children into the living room and found a roommate to shoulder the part of the rent that she couldn’t afford.
“It’s crazy,” Thompson says about her schedule. “It’s so hard trying to plan your life.”
But thanks to an ordinance passed in Seattle last month, Thompson and other workers in the service and retail industries will finally have the freedom to think more than one day ahead. The new law, known as “secure scheduling,” will take effect in July 2017 and will impact large retail, service, and drinking establishments with a minimum of 500 workers globally, as well as full-service restaurants with more than 500 workers and 40 or more locations.
The measure requires that employers post work schedules at least two weeks in advance, offer additional hours to existing workers before hiring new employees, and provide at least a 10-hour break between closing and opening shifts. Thompson says that anything less than that doesn’t leave enough time to rest, shower, care for her children, and be alert enough to work another shift.
The Seattle measure comes on the heels of similar legislation passed in San Francisco in 2014, which labor activists call a game changer for the labor movement. It provides that hourly workers have the ability to better budget their expenses, take on second jobs, and plan for education and family time.
Workers in the service and retail industries will finally have the freedom to think more than one day ahead.
Working Washington, a Seattle-based labor advocacy organization that led the efforts, attests that, much like legislation for a $15 minimum wage that passed in Seattle in 2014, predictable schedules will likely spread to other cities and states too. New York City Mayor Bill de Blasio recently announced that he and other city officials plan on drafting legislation to ensure secure scheduling for fast-food workers.
Thompson’s plight is common for workers in the service and retail industry nationally, as shown in a report co-authored by associate professor Susan Lambert at the University of Chicago’s School of Social Service Administration. About 3 out of 4 early-career adults in hourly jobs report fluctuations in the number of hours they’ve worked in a month, and nearly half of part-time workers said that their employers gave them a week’s notice or less when their schedules changed.
Photo courtesy of Working Washington.
The problem is especially severe among African Americans and Latinos in Seattle. Another study, this one commissioned by the city itself in July, revealed that the two groups were the most likely to receive their schedules with less than a week’s notice, be required to be on-call, or to be sent home during slow shifts. They also reported higher rates of having difficulty attending classes and working second jobs because of their schedules.
Sejal Parikh, executive director of Working Washington, says that erratic scheduling has proliferated in the past two decades with the advent of scheduling software programs. After her group pushed for a $15 minimum wage and won, a campaign for secure scheduling seemed like a natural next step, she says. “The $15 minimum wage is about money, and the secure scheduling campaign is really about power.”
A stable schedule allows workers to spend time with their families, have hobbies, and further their careers.
But the measure is not immune to opposition. The advocacy group Washington Retail Association issued a press release in August stating that the measure undermines the fluctuating nature of business and would lead to layoffs. But Parikh counters that companies are already staffing leanly and that there’s usually not an excess of workers during one shift. A secure schedule simply allows a barista who lives an hour away from work to get eight hours of sleep at home instead of sleeping inside of the coffee shop, she contends.
It’s important that the more than 75 million people who work hourly jobs nationally have some say in their own schedule, says Carrie Gleason, director of the Fair Workweek initiative at the Center for Popular Democracy. A stable schedule allows workers to spend time with their families, have hobbies, and further their careers. Gleason adds that the legislation “ensures that Seattle workers can have a voice” in determining how many hours they work, which is something she hopes catches on in other cities.
In Seattle, Thompson is already planning out the time she’ll enjoy once she has a more predictable schedule. She is now working part time because she’s caring for her 9-month-old baby, but Thompson says she plans on going back to school to get a degree in Spanish and to become an interpreter. The new ordinance will also allow her to figure out child care and to budget for the rent in her new Section 8 housing, which takes 30 percent of her income.
More than anything, Thompson says she’s looking forward “to more peace of mind.”
By Melissa Hellmann
Source
Parsippany contractor fined $3.2M for underpaying immigrant labor
Parsippany contractor fined $3.2M for underpaying immigrant labor
New York City Comptroller Scott M. Stringer on Tuesday assessed $3.2 million in fines against a Parsippany-based...
New York City Comptroller Scott M. Stringer on Tuesday assessed $3.2 million in fines against a Parsippany-based contractor for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law.
K.S. Contracting Corp. and its owner, Paresh Shah, also will be barred from working on New York City and State contracts for five years.
“With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our city running. Every New Yorker has rights, and my office won’t back down in defending them,” Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”
K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015. The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.
An Internet search produced two Parsippany addresses for K.S. Contracting, both listing Shah as the owner. The number listed for an office at 342 Parsippany Road has been disconnected. A woman answering a call to the other Parsippany location listed for the company, a residential address at 29 Phillip Drive, said no one by the name Paresh Shah was there, and "no contracting."
Paresh Shah is listed in New Jersey tax records as the owner at 29 Phillip Drive.
According to Stringer's statement announcing the penalties, K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Those projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men’s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various city sidewalks in Queens.
The comptroller’s office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and city agency data to uncover a kickback scheme that preyed on immigrant workers.
Stringer's statement included a video shot with a hidden camera by a foreman on several of the aforementioned construction jobs. A comptroller's office spokesperson said the foreman, who was cooperating with authorities as a victim of the scheme, is seen handing $4,982 in cash to the K.B. manager in a car and asking the manager to count it. The manager then takes the cash out of an envelope and counts it.
According to the comptroller's office, the cash was the proceeds of paychecks distributed to workers, who then cashed the checks and gave it back to the foreman.
After a four-day administrative trial in May 2016, Stringer found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors. The Comptroller further found that those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages. Stringer added that the company falsely reported to city agencies that all employees on the job site who received checks were paid the prevailing wage.
Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects, stringer said. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day.
The New York City Comptroller’s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.
When workers are underpaid, the New York City Comptroller’s office works to recoup the amount of the underpayment plus interest.
By William Westhoven
Source
These Cities Aren’t Waiting for the Supreme Court to Decide Whether or Not to Gut Unions
These Cities Aren’t Waiting for the Supreme Court to Decide Whether or Not to Gut Unions
In the face of the Janus case, local elected officials across the country are renewing our efforts to help workers...
In the face of the Janus case, local elected officials across the country are renewing our efforts to help workers organize—in traditional ways, and in new ones. Brad Lander is a New York City Council Member from Brooklyn and the chairman of the board of Local Progress, a national association of progressive municipal elected officials. Helen Gym is a Councilmember At Large from Philadelphia and Vice-Chair of Local Progress, a national network of progressive elected officials.
2 days ago
2 days ago