Activists at Jackson Hole See Recovery on Wall Street, ‘Not My Street’
The Wall Street Journal - August 22, 2014, by Pedro Nicolaci Da Costa - A group of activists has descended on the...
The Wall Street Journal - August 22, 2014, by Pedro Nicolaci Da Costa - A group of activists has descended on the Kansas City Federal Reserve Bank’s annual conference in Jackson Hole, Wyo., to tell central bank officials that any move to raise interest rates soon could wreak havoc on the lives of Americans still struggling with a weak economic recovery.
U.S. unemployment has fallen fairly rapidly in recent months, to 6.2% in July, down from its post-recession peak of 10%. However, the activists said those numbers mask much deeper troubles in the country’s poorer neighborhoods. The unemployment rate for African-Americans, for instance, was 11.1% in July.
Reggie Rounds, 57 years old, came to the conference from Ferguson, Mo., the site of recent violent protests following the killing of an unarmed teenager by a police officer. During a brief conversation here with Federal Reserve Vice Chairman Stanley Fischer, Mr. Rounds, who is unemployed and says he hasn’t had regular work for years, urged the central bank to keep poor Americans on their minds as they make policy decisions.
“I deal with people who have educated themselves. These people, sir, are inundated with student loans. They’re making just not livable wages or not wages at all,” Mr. Rounds told Mr. Fischer. “We’re desperately needing a stimulant into this economy, and job creation, to get us going.”
Mr. Fischer responded: “That’s what the Fed has been trying to do and will continue to try to do.”
The Fed has kept interest rates near zero since December 2008 and bought more than $3 trillion in government and mortgage bonds to keep long-term rates low, spur investment and boost hiring.
However, recent improvements in the job market and a pickup in inflation have revived debate about when the central bank should begin lifting interest rates from rock-bottom lows. In her speech here Friday, Fed Chairwoman Janet Yellen said if the labor market keeps improving faster than the Fed forecasts the central bank could raise rates sooner than expected. Many investors anticipate the first move in the summer of next year, a perception some top Fed officials have encouraged.
Representatives of the Center for Popular Democracy, a left-leaning national nonprofit organization, said they organized the activists’ trip to Jackson Hole. The participants argued that near-term rate increases could have a deep negative impact on the most vulnerable sectors of the population.
Reuben Eckels, 51, a reverend from Wichita, Kan., said he had come to the conference to tell policy makers “how raising interest rates would affect the community in which I serve.” He and other activists played down the notion of a “skills gap” where workers might not have the qualifications for the jobs available.
“We have young people who are college students in our church who have a 4.0 [grade average], Dean’s list, they can’t find jobs,” he said. “So this is not about just raising the rates so we can offset an imbalance for those elderly who are trying to save their portfolio. This is about people on the street, everyday people … who are just trying to live a good quality of life.”
Shemethia Butler, 34, is one such individual. Hailing from Washington, D.C. the mother of two says she is dealing with extreme stress because the wages she earns at McDonald’s aren’t enough to cover her rent, much less basic expenses like food, electricity and transportation.
“I have no vehicle. My housing situation is stressful. I’m about to lose my apartment. I’m struggling really hard,” she said. “Things may be fine on Wall Street, but they’re not fine on my street.”
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Fed district that includes Charlotte announces new president
Fed district that includes Charlotte announces new president
The Federal Reserve Bank of Richmond, which monitors large banks in a district that includes Charlotte, announced a new...
The Federal Reserve Bank of Richmond, which monitors large banks in a district that includes Charlotte, announced a new president on Monday.
Thomas Barkin, chief risk officer for consulting firm McKinsey & Company, assumes the Fed role Jan. 1. He replaces Jeffrey Lacker, who abruptly retired this year after acknowledging he had improperly discussed sensitive information involving Fed policy with an analyst.
Read the full article here.
How Walmart Persuades Its Workers Not to Unionize
One former Walmart store manager tells the story that after discovering a pro-union flyer in his store’s men’s room,...
One former Walmart store manager tells the story that after discovering a pro-union flyer in his store’s men’s room, he informed company headquarters and within 24 hours, an anti-union SWAT team flew to his store in a corporate jet. And when the meat department of a Walmart store in Texas became the retailer’s only operation in the United States to unionize, back in 2000, Walmart announced plans two weeks later to use prepackaged meat and eliminate butchers at that store and 179 others.
With 1.3 million U.S. employees—more than the population of Vermont and Wyoming combined—Walmart is by far the nation’s largest private-sector employer. It’s also one of the nation’s most aggressive anti-union companies, with a long history of trying to squelch unionization efforts. “People are scared to vote for a union because they’re scared their store will be closed,” said Barbara Gertz, an overnight Walmart stocker in Denver.
Walmart maintains a steady drumbeat of anti-union information at its more than 4,000 U.S. stores, requiring new hires—there are hundreds of thousands each year—to watch a video that derides organized labor. Indeed, Walmart’s anti-union campaign goes back decades: There was “Labor Relations and You at the Wal-Mart Distribution Center,” a 1991 guide aimed at beating back the Teamsters at its warehouses, and then in 1997 came “A Manager’s Toolbox to Remaining Union Free.” The first half of a statement in that toolbox has been repeatedly snickered at for being so egregiously false: “We are not anti-union; we are pro-associate.”
Early last year, Anonymous, a network of hacker activists, leaked two internal Walmart PowerPoint slideshows. One was a “Labor Relations Training” presentation for store managers that echoed the “Manager’s Toolbox” in suggesting that unions were money-grubbing outfits caring little about workers’ welfare. “Unions are a business, not a club or social organization—they want associates’ money,” the PowerPoint read. (Walmart confirmed the PowerPoints’ authenticity.) “Unions spend members’ dues money on things other than representing them,” it added.
Walmart is perfectly within its rights to communicate its stance to employees. While employers are legally barred from threatening store closures, layoffs, or loss of benefits because of unionization, they are free to tell workers why they oppose unions.
Walmart has battled for years against the United Food and Commercial Workers Union, which represents employees at many grocery stores and retailers, and its offshoot, OUR Walmart, an association of Walmart employees. Walmart insists that the UFCW is out to damage Walmart’s business. The second PowerPoint that Anonymous leaked last year attacked OUR Walmart, asking, “Is OUR Walmart/UFCW here to help you? Answer: NO.”
Tensions have risen between the retailer and OUR Walmart in recent years, with the labor group organizing nationwide protests outside hundreds of stores each Black Friday. The National Labor Relations Board issued a complaint in January of last year, accusing Walmart of illegally firing 19 OUR Walmart members and illegally disciplining more than 40 others after strikes and protests demanding higher pay. Walmart maintains that the firings and disciplining were legal and not in retaliation for protesting.
Getting a glimpse of Walmart’s internal PowerPoints and training manuals is rare, but one of Walmart’s orientation videos was leaked recently, and it again revealed Walmart’s anti-union efforts. Labor experts and Walmart employees say they were surprised at the blatant untruths in many of the video’s pro-company and anti-union statements.
Walmart confirmed the video’s authenticity and said the company showed it to new hires from 2009 through last year. Early on in the course of the video’s nine minutes, an actor dressed as a Walmart employee says, “You’re just beginning your career with us. It’s hard to grasp everything that’s available to you, like great benefits.”
Ken Jacobs, the chairman of the University of California, Berkeley’s Labor Center, suggested that this was essentially propaganda. “Walmart's benefits are well below the standard for union groceries,” he said. “They are not ‘great benefits’ by any standard.” A discounter like Walmart certainly doesn’t have the generous pensions or Cadillac health plans offered by some companies. Gertz, the overnight stocker in Denver, says her health plan is so stingy that she often doesn’t see a doctor when she’s sick because the deductible requires her to pay the first few thousand dollars out of pocket. Gertz said that when workers call in sick, their first day off comes out of their vacation days or personal days, not their paid sick days.
A spokesperson for Walmart says it will soon revamp its policy so that employees can use paid sick days starting on their first day out. The spokesperson added that its bonuses, 401(k) plan, and health plan are considerably better than at most other discounters—its 401(k) plan gives a dollar-for-dollar match for the first six percent of pay and the premium for its most popular health plan is just $21.90 every two weeks. That said, part-time workers, who represent nearly half its work force, don’t qualify for many of these benefits.
The leaked video also boasts, “There’s no retail company that offers more advancement and job security than Walmart.” Considering that some retailers are unionized with strong job-security provisions in their union contracts, some labor advocates wondered how Walmart could begin to assert that its job security is as strong as any other retailer’s.
“That’s patently false,” said Stuart Appelbaum, the president of the Retail, Wholesale and Department Store Union, a division of the UFCW. “At Walmart you can be fired for any reason at all or no reason.” He contrasted Walmart, one of the nation’s many “at-will” employers, with retailers that are unionized or partly unionized, including Costco, Macy’s, H&M and Modell’s. At unionized stores, workers can only be fired “for cause,” meaning managers need a strong reason to fire someone—for example, stealing from a store or arriving 30 minutes late five days in a row. Moreover, workers in those unionized stores can usually challenge their dismissal by bringing in an impartial arbitrator who helps determine whether a firing was justified.
Walmart, in its orientation video, makes other attempts at belittling unions. It features an actor who says, “I was a union member at my last job. Everyone actually had to join the union . . . The thing I remember most about the union is that they took dues money out of my paycheck before I ever saw it, just like taxes.” The character’s assertion that he “had to join the union” diverges from the truth. The Supreme Court ruled in 1963 that workers cannot be required to join the union at a unionized workplace—although they can be required to pay union dues or fees (unless they live in one of the 25 states with “right to work” laws).
In the video, an actress standing in front of a rack of produce continues to hammer the message. “I always thought that unions were kind of like clubs or charities that were out to help workers,” she says. “Well, I found out that wasn’t exactly the case. The truth is unions are businesses, multimillion-dollar businesses that make their money by convincing people like you and me to give them a part of our paychecks.”
Although some union leaders have generous salaries, Benjamin Sachs, a labor law professor at Harvard, said that unions aren’t for-profit businesses. “If unions are businesses, they’re the best example of the sharing economy we’ve seen,” Sachs said. “Here’s the business model: By sharing their resources, including their financial resources, workers make better lives for themselves and their families.” Thomas Kochan, an MIT professor of management, said that the phrase the actor uses—“clubs and charities”—“insults any new hire’s intelligence.” “Most people know what unions are and what they try to do,” Kochan said.
Indeed, one might ask, if unions are doing as little for workers as Walmart maintains, why then does Walmart bother to battle unions so aggressively? Walmart takes a far more jaundiced view of unions than do many Americans—for instance the nation’s Roman Catholic bishops. “The Church fully supports the right of workers to form unions or other associations to secure their rights to fair wages and working conditions,” the bishops once wrote in a pastoral letter, Economic Justice for All. And Pope John Paul II, never known as a raging liberal, called unions, “an indispensable element of social life.”
Brian Nick, a Walmart spokesman, explained why the company made the video. “The core reason to have the training and information on video, in and of itself, is we know that third-party groups often reach out to our associates,” he said. “This is an opportunity for us to provide accurate information that gives our associates knowledge about their work environment and their own rights as associates.”
In boasting about Walmart, the video says, “Walmart jobs are flexible jobs, giving associates the opportunity to balance our personal life with our worklife.” But Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy, an advocacy group, strongly disagreed. “I’ve spoken with countless Walmart associates who talk about how erratic their work schedules are, about how managers regularly disregard their requests for basic accommodations so they can go to school or take care of their families,” she said. Some Walmart workers say their stores slashed their hours when they asked managers to accommodate their college schedule or their efforts to hold a second job to make ends meet.
Brian Nick, the Walmart spokesman, said the company was improving its scheduling practices. Beginning next year, it will offer some employees fixed schedules each week—many employees complain that their work schedules change vastly week-to-week.
In urging workers to shun unions, the Walmart video says, “In recent years, union organizers have spent a lot of time, effort and money trying to convince Walmart associates to join a union, all without any success.” But that’s not quite true. The UFCW hasn’t sought to persuade Walmart employees to join a union in recent years, although it did help form OUR Walmart to push for better wages and working conditions. OUR Walmart claimed a victory in February when Walmart announced it would raise its base pay to $9 this year and $10 next year. A spokesperson for Walmart said it was responding to a tighter labor market and boasted that the move would mean raises for 500,000 workers.
The Walmart video is correct about at least one thing: Most of the recent unionization votes at Walmart stores in the U.S. were unsuccessful. For example, the tire and lube workers at two Walmart stores, in Colorado and Pennsylvania, voted overwhelmingly in 2005 against unionizing. But the UFCW had a big success in 2004, when it unionized a Walmart in Jonquiere, Quebec—a first in North America. Walmart closed that store shortly afterward, and Canada’s Supreme Court ultimately ruled that the shutdown was an illegal ploy to avoid having a union. Walmart has long argued that it closed the Jonquiere store because it was unprofitable and that the closing had nothing to do with the union. As for Walmart’s decision to suddenly begin using prepackaged meat after that meat department in Texas unionized in 2000, the company said that the timing was just a coincidence and that the decision had nothing to do with unionization.
This past April, Walmart abruptly announced it was closing its store in Pico Rivera, California, along with four other stores, for six months. Many workers saw that as a daunting anti-union statement—the Pico Rivera store has the nation’s most militant OUR Walmart chapter, having staged a sit-in and numerous other protests. Walmart, however, insisted that the closing was necessitated by “ongoing plumbing issues.”
Source: The Atlantic
One ex-banker's built-in advantage in the Fed chair race: Family ties to Trump
One ex-banker's built-in advantage in the Fed chair race: Family ties to Trump
With Gary Cohn’s chances of becoming chairman of the Federal Reserve diminished, another former banker is waiting in...
With Gary Cohn’s chances of becoming chairman of the Federal Reserve diminished, another former banker is waiting in the wings for the coveted post: Kevin Warsh.
A veteran of both the central bank and Wall Street, Warsh is already high on the White House’s list of possible successors to Fed Chair Janet Yellen. But he has an enviable reference: his billionaire father-in-law, who met Donald Trump in college and is a confidant to this day.
Read the full article here.
Blacks Nearly Four Times More Likely Than Whites to Be Unemployed in Minnesota
Minneapolis City Pages - March 6, 2015, by Ben Johnson - A new study reaffirms a refrain equality advocates have become...
Minneapolis City Pages - March 6, 2015, by Ben Johnson - A new study reaffirms a refrain equality advocates have become quite fond of in this state: Minnesota is a great place to live -- for white people.
The Center for Popular Democracy and the Economic Policy Institute released a study yesterday showing the statewide unemployment rate for black people is 11.7 percent, compared to 3.2 percent for white people.
Black Minnesotans' unemployment rate is 3.7 times higher than white Minnesotans'. The study analyzed all 50 states and the District of Columbia, and the only places with a larger gap were Wisconsin (4.6 times higher) and D.C. (5.6 times higher).
Minneapolis unemployment rates are lower than statewide, but the racial gap (3.9x) is even higher.
When these figures came out yesterday protesters from across the country lobbied the Federal Reserve to keep its interest rates low.
When interest rates are low it's easier for businesses to borrow money, and in theory, easier access to money means businesses can hire -- and pay -- more people. On the flip side, if interest rates are kept too low for too long inflation becomes a concern.
"Unemployment is slowly, slowly heading in the right direction, but raising interest rates at this point would really set minorities back," said Becky Dernbach with Neighborhoods Organizing for Change, which held a rally yesterday at its headquarters. "We think the Fed needs to pay special consideration to how the recovery has not hit certain communities at all."
NOC and its allies are supportive of Minneapolis Fed President Narayana Kocherlakota, who favors keeping interest rates low, but he's stepping down in a year. Protesters made it clear yesterday they want a say in who takes his place.
"On a fundamental level, we need to have a voice in the process," said Dernbach.
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Debbie Lesko wins Arizona congressional race, leaves Republicans anxious about the fall
Debbie Lesko wins Arizona congressional race, leaves Republicans anxious about the fall
Ady Barkan, the California man with ALS who confronted Sen. Jeff Flake, R-Arizona, over health care issues last year,...
Ady Barkan, the California man with ALS who confronted Sen. Jeff Flake, R-Arizona, over health care issues last year, started an organization to oppose GOP health care policies and raised money for Tipirneni. "There is no such a thing as a safe Republican seat this year. Dr. Hiral Tipirneni overcame the odds to come within striking distance of victory in a deep red district, because the Republicans put their donors' greed ahead of the health of families like mine," Barkan said Tuesday.
Read the full article here.
Tax reform stumbling block
Tax reform stumbling block
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White...
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White House legislative director Marc Short. Part of the reason is that it probably won’t be ready yet. But it also has to wait until after the GOP congress passes a budget resolution, people close to the matter tell MM.
Because if Republicans lay out their tax reform plan beforehand, Democrats could use the budget vote-a-rama process in the Senate to try and attack individual pieces of the plan.
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Brett Kavanaugh's 2nd accuser contacted by the FBI: Lawyer
Brett Kavanaugh's 2nd accuser contacted by the FBI: Lawyer
With only a week to conduct its high-stakes investigation into the sexual misconduct allegations against Brett...
With only a week to conduct its high-stakes investigation into the sexual misconduct allegations against Brett Kavanaugh, the FBI has already contacted the second woman to accuse the Supreme Court nominee, her lawyer said.
Read the article and watch the video here.
A 'striking lack of diversity' at the Fed distorts economic policy in ways most people don’t consider
A 'striking lack of diversity' at the Fed distorts economic policy in ways most people don’t consider
In a new report from the liberal-leaning Fed Up, a coalition of community groups advocating for continued low interest...
In a new report from the liberal-leaning Fed Up, a coalition of community groups advocating for continued low interest rates from the Fed with a view to helping the country's poorer families enjoy some of the benefits of the recovery, the group says a lot of work remains to be done despite recent progress on diversity under Yellen's tenure.
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Why Texans Are Fighting Anti-Immigrant Legislation
Why Texans Are Fighting Anti-Immigrant Legislation
Austin, Tex. — I’m a member of the Austin City Council, and this month Texas State Troopers arrested me for refusing to...
Austin, Tex. — I’m a member of the Austin City Council, and this month Texas State Troopers arrested me for refusing to leave Gov. Greg Abbott’s office during a protest against the anti-immigrant Senate Bill 4.
The bill, which Mr. Abbott signed May 6, represents the most dangerous type of legislative threat facing immigrants in our country. It has been called a “show me your papers” bill because it allows police officers — including those on college campuses — to question the immigration status of anyone they arrest, or even simply detain, including during traffic stops.
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2 months ago
2 months ago