Think The Minimum Wage Will Be Safe Under Labor Secretary Puzder? Not So Fast.
Think The Minimum Wage Will Be Safe Under Labor Secretary Puzder? Not So Fast.
This year was supposed to be a good one for America’s workers. After all, nearly 12 million workers won higher wages in...
This year was supposed to be a good one for America’s workers. After all, nearly 12 million workers won higher wages in 2016, the result of sustained and coordinated efforts around the country. There’s a catch though: if these wages aren’t enforced, American workers will never even see them.
And despite widespread support, state and local lawmakers and business communities have already begun threatening to not comply with the wage hikes. In Maine, Governor Paul LePage ordered his administration to stop enforcing a minimum wage hike that 60 percent of his state’s residents voted for, telling employers who violate the law that they would be off the hook.
At the other end of the country in Flagstaff, Arizona, 54 percent of city residents backed a $15 minimum wage in elections last year, but business groups are fighting to move enforcement from a local authority to a state commission, which would likely delay the processing of claims. The state as a whole has backed higher wages, approving a proposition to raise the state’s minimum to $12 by 2020 last year.
In the face of such attacks at the city and state level, it’s imperative to have a federal Labor Department committed to ensuring that workers aren’t cheated out of their wages - wages not only earned through hard work but also guaranteed by law.
This won’t be the case if Andy Puzder becomes Labor Secretary. As chief executive officer of CKE Restaurants, the parent company of Carl’s Jr. and Hardee’s, Puzder consistently flouted basic labor standards.
Puzder, whose confirmation hearing has already been put off multiple times, could easily fail to enforce the wage increases that prevailed in referendums throughout the country, and he’s likely to put even the existing protections we have in jeopardy - including the minimum wage, which currently stands at a paltry $7.25.
It’s the proverbial fox guarding the hen house, a term that we seem to be asserting with every cabinet appointee, but that rings even more true with Puzder.
Just last week, CKE Restaurants was hit with nearly two dozen charges of stealing wages. Multiple workers said they had worked for weeks without seeing a paycheck. One was only paid after he stopped coming to work in protest.
CKE has also come under fire for paying employees with pre-paid debit cards that incur fees on certain ATMs, in effect shorting employees their full paycheck.
If Puzder runs the Labor Department like he runs his company, these kinds of abuses will be allowed to flourish nationwide – and workers will lose one of their most important outlets for addressing their concerns.
For working Americans, it could be a disaster of epic proportions
And CKE is far from the only chain that regularly skirts labor laws. In fact, wage theft runs rampant across the restaurant industry, as well as retail and other low-paying service jobs. A National Employment Law Project study found that more than two-thirds of low-wage workers in New York City, Chicago and Los Angeles had experienced wage theft in the previous workweek. The Economic Policy Institute in 2014 calculated that wage theft cost Americans as much as $50 billion every year
Some states, realizing the scope of the problem, have taken steps to improve oversight in recent years. In New York, 2010 workers won the strongest protections against wage theft in the country. After passage of a significantly higher minimum wage last year, Governor Cuomo followed up with a 200-person task force to ensure wages are being paid.
Yet state action can only do so much. The Department of Labor sets standards for wage enforcement around the country and is the front-line agency for filing many wage theft cases. A 2009 Government Accountability Office report found that weak oversight during the Bush years had left thousands of workers stranded with nowhere to turn.
We have made too much progress to turn back now. Taking the teeth out of oversight hurts workers and hurts the overall economy. Members of Congress need to make clear that Puzder’s persistent record of wage theft disqualifies him from the job of Labor Secretary – and, if Puzder is confirmed, states must show that they are willing to stand up for workers on their own.
By JoEllen Chernow
Source
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.
NYC and Seattle seek 'fair workweek' legislation for fast-food workers
NYC and Seattle seek 'fair workweek' legislation for fast-food workers
Municipal leaders and labor activists nationwide who fought for a $15 minimum wage now want to serve up a “fair...
Municipal leaders and labor activists nationwide who fought for a $15 minimum wage now want to serve up a “fair workweek” and steady hours for fast-food workers.
New York City Mayor Bill de Blasio set a plan in motion last week to give 65,000 hourly workers in the city's fast-food industry more stable work schedules by requiring a two-week notice for employee shift assignments. City Council members have vowed to introduce the legislation in the coming weeks.
In Seattle, the City Council on Monday gave its unanimous approval to a similar ordinance, which will affect well-known retail and food service establishments, as well as certain full-service restaurants. Mayor Ed Murray is scheduled to sign the ordinance into law by next week.
While supporters of such proposals – called “secure scheduling” in Seattle – say working families need protection against erratic work schedules, some retail organizations argue these concerns have been blown out of proportion. The Washington Retail Association said the Seattle ordinance would make work schedules less flexible.
“The effects of the law threaten to reduce available work hours for retail employees, reduce hiring opportunities and impose burdensome bookkeeping and fines on retailers deemed to be in violation of the law,” the retail association said in a news release.
Other business groups, however, don’t see the scheduling legislation as a major burden for employers. Mark Jaffe, chief executive officer of the Greater New York Chamber of Commerce, told AMI Newswire that the proposal is fair and that it wouldn’t cause fast-food eateries to go out of business.
“How hard is it to schedule people two weeks in advance?” he said.
A number of citywide initiatives, from affordable housing to reasonable transportation options, have helped New York City maintain a productive workforce, Jaffe said, and the Fair Workweek legislation would do the same. “We don’t believe it’s an unreasonable burden on the employer,” he said. “This is a no-brainer.”
The proposal was directed toward fast-food workers because that’s where most of the scheduling concerns originate, Jaffe said. Many of those employees need to map out their schedules in advance because they often work more than one job, he said.
The New York State Restaurant Association expressed concern about the proposed legislation but hopes it can work with city officials to reduce the burden to its members.
“It’s troubling that fast-food restaurants, which are really a local franchisee-run small business, have been singled out yet again when these restaurants are already being subjected to greater regulations than any other industry,” said the restaurant association’s chief executive officer, Melissa Fleischut, in a prepared statement. “Labor costs for quick-serve restaurants are skyrocketing, and under state law the hospitality industry is already subject to call-in pay and extra pay for a longer-than-10 spread of hours in a single day.”
In addition to providing employees a two-week notice on work schedules, the New York City proposal would force employers who make last-minute schedule changes to pay extra compensation to affected workers. The plan would also place restrictions on the practice of what’s called “clopening” – when an employee is required to work a closing shift followed by an opening shift.
“We will regulate that practice and require that there be at least 10 hours between a closing shift and an opening shift that a worker has to perform,” de Blasio said during a public announcement last week.
The mayor dismissed anticipated concerns about layoffs resulting from the proposal, saying that he heard the same rumblings when the city was moving to expand paid sick leave for workers. “Guess what happened?” de Blasio said. “This city has added 290,000 private-sector jobs.”
Jan Teague, chief executive officer of the Washington Retail Association, said in a prepared statement that the Seattle proposal could limit the ability of businesses to take part in the city’s Summer Youth Employment Program and make it more difficult for college students to find temporary jobs over the summer and during holidays.
Teague has also expressed concern that employers would end up paying higher “predictive pay” to workers in order to fill shifts resulting from a worker calling in sick or quitting abruptly.
“Any way you slice it, this ordinance will make the workplace less flexible to meet the needs of employees and employers,” Teague said during the debate over the Seattle measure. “Sadly, this ordinance will reduce the number of hours available for many retail and restaurant employees – and they cannot afford to see their incomes go down.”
In addition, she took issue with the idea of discouraging time allotments between shifts of less than 10 hours. Some workers want to have shifts close together during part of the week to free up time later for second jobs or helping to care for a family member, Teague said.
The National Retailers Association took a similar position. “Government intervention in the scheduling of employees through a one-size-fits-all approach intrudes on the employer-employee relationship and creates unnecessary mandates on how a business should operate,” the association said in a statement on its website.
Despite such concerns, the pro-worker advocacy group Center for Popular Democracy predicted that the victory for secure scheduling in Seattle would encourage other cities to follow suit.
“Those working in Seattle’s retail, restaurant and coffee chains will no longer have to turn their lives upside down just to earn enough hours to survive – and they will finally gain a greater voice in how much and when they work,” the center’s director of the Fair Workweek Initiative, Carrie Gleason, said in a prepared statement. “We can expect the vote in Seattle will inspire other cities to act.”
By Michael Carroll
Source
Elizabeth Warren, Workers Take Aim at ‘Walmart Economy’
RH Reality Check - November 19, 2014, by Emily Crockett - When Sen. Elizabeth Warren (D-MA) and Rep. George Miller (D-...
RH Reality Check - November 19, 2014, by Emily Crockett - When Sen. Elizabeth Warren (D-MA) and Rep. George Miller (D-CA) invited Walmart workers to brief Congress on Tuesday about the retail giant’s abusive practices, the conversation was about more than just Walmart.
“No one in this country should work full-time and still live in poverty,” Warren said.
“This is about the simple dignity of the people you have hired to work,” Miller said. “When you have a higher minimum wage, fair scheduling, and equal work for equal pay, the perception of the business goes up in the people’s mind, the customers go up and the revenues go up.”
Cantare Duvant, a Walmart customer service manager, said at the briefing that since Walmart is the nation’s largest retailer, it sets the standard for others in the industry. “So not only do we as Walmart workers deserve better, our economy also deserves better,” she said.
Duvant is a member of OUR Walmart (Organization United for Respect at Walmart), a union-backed group of Walmart workers who are, in Duvant’s words, “struggling to support our families on low pay and erratic scheduling” in what is now “Walmart’s low-wage economy.”
“Walmart specifically is worth discussing not only because of the 1.3 million workers it directly employs, but also because of the impact its employment practices have on the rest of our economy,” said Amy Traub, senior policy analyst at Demos. She said Walmart does this by “pushing down wages, limited workers hours, and squeezing its suppliers and its competitors.”
A majority of Americans are paid by the hour, and about half of early-career adults have no say in their work schedules, said Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy. “This isn’t just a narrow section of people,” she said.
Sen. Warren, a progressive hero who was recently appointed to a position in the Senate Democratic leadership, said that the issue of low-wage work in America is “deeply personal” for her.
When her father lost his job after having a heart attack, Warren said, her working-class family couldn’t pay the bills, lost their car, and almost lost their home. Then one day, “My mother, who was 50 years old and had never worked outside the home, pulled on her best dress, put on her lipstick, put on her high heels, and walked to Sears to get a minimum-wage job.”
“But here’s the key: It was a minimum-wage job in an America where a minimum-wage job would support a family of three.”
That could never happen today, Warren said, when “a momma and a baby on a full-time minimum-wage job cannot keep themselves out of poverty.”
Warren used the briefing to promote three pieces of legislation aimed at helping low-wage workers, including but not limited to people working at Walmart.
Those bills would raise the federal minimum wage to $10.10 per hour, give workers more reliable and flexible schedules, and help women address unequal pay based on gender.
Equal pay came up because women make up about two-thirds of the low-wage work force, and many are family breadwinners. Warren said that women in about half of American jobs can be fired just for asking whether their pay is unequal to their male coworkers.
The Schedules That Work Act, Warren said, is about the “basic fairness” of workers being able to plan for a second job, child care, or schooling. It would require employers to give workers their schedules two weeks in advance, compensate them for showing up for work only to be sent home, and not retaliate against workers for requesting more flexible or predictable schedules.
All three bills have been blocked by Republicans, which Warren openly acknowledged.
“I know that change is not easy. We might not pass these bills right away,” she said. “But don’t kid yourself about the importance of these bills, and the assurance that we’re eventually going to get them through.”
The Schedules That Work Act in particular would help Fatmata Jabbie, a Walmart worker and refugee from Saudi Arabia whose story was read at the hearing.
“Although I am not full-time yet, I am virtually on call seven days a week to pick up extra hours,” she said in her written statement. Her reward for that trouble is usually only 30 to 36 hours of work and $150 to $200 in take-home pay.
“I am a mom with two beautiful children, so I am not the only one who relies on that salary to survive,” Jabbie said.
OUR Walmart is pushing for bigger reforms than the three bills Warren promoted though. Members of the group are calling for their aggressively non-unionized employer to pay a minimum living wage of $15 an hour, provide stable, full-time schedules, and stop retaliating against workers who speak out against the company’s practices.
Duvant, for instance, already makes the $10.10 per hour that the federal minimum wage bill would guarantee—but that doesn’t do her much good, she said, when Walmart will only schedule her for 16 hours of work per week.
And Evelin Cruz, who worked for Walmart for 11 years, said at the hearing that the company fired her a few weeks ago for her activism with OUR Walmart.
“We spoke out for change, and Walmart did what it does best, which is bully, retaliate, and fire me,” she said.
Cruz told RH Reality Check that even though she no longer works at Walmart and is looking for other work, she’ll keep up the fight with OUR Walmart.
“That’s what they count on, for people to be out of Walmart and no longer want to participate,” she said. “But this is an issue that is not only affecting people in Walmart. It’s a widespread problem of scheduling, lack of hours, and a minimum wage that you can’t survive on.”
Source
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.
The End of On-Call Scheduling?
Retailers have been ...
Retailers have been under intense pressure from labor groups, regulators, and their own employees to end on-call scheduling—the practice in which shift workers are called to work on short notice, and are often uncompensated if it turns out to be a slow day. On Friday, New York attorney-general Eric Schneiderman’s office announced that J.Crew will end on-call scheduling nationwide this month. The retailer joins Urban Outfitters, Abercrombie & Fitch, Bath & Body Works, Gap, and Victoria’s Secret, which all have announced changes since Schneiderman’s office launched an inquiry into the practice at over a dozen companies.
“After discussion with my office, J. Crew has agreed to end on-call shifts nationwide and to provide one week of advance notice about schedules to employees at all New York store locations,” said Schneiderman in a statement. “Workers deserve protections that allow them to have a reliable schedule in order to arrange for transportation to work, to accommodate child-care needs, and to budget their family finances.”
This is the sixth agreement Schneiderman has reached with a major retailer. In April, the New York attorney-general’s office sent letters to 13 retailers asking for information regarding their scheduling policies: “We have been informed that a number of companies in New York State utilize on-call shifts and require employees to report in some manner, whether by phone, text message, or email, before the designated shift in order to learn whether their services are ultimately needed on-site that day,” said the letter.
The letter expresses concern that the practice might be in violation of a state regulation that employees who report for work must be paid for at least four hours (or the number of hours in a regular shift) of work. It cites the financial and personal strains for workers without predictable schedules—from being unable to work another job or attend school, to the strains of finding childcare last minute. Further, a report by the Economic Policy Institute found that the lowest income workers face the most irregular work schedules.
A spokesperson for Gap Inc. confirmed that all five brands—The Gap, Banana Republic, Old Navy, Intermix, and Athleta—has phased out on-call scheduling globally by the end of September.* L Brand—the parent company for Victoria’s Secret and Bath & Body Works—also confirmed that they have ended the practice nationwide.
Gap is also working on a pilot project with Joan Williams, a professor and director of the Center for WorkLife Law at the University of California Hastings College of Law, and Susan Lambert, a professor at the University of Chicago who studies scheduling issues, on new ways to stabilize worker schedules. Lambert’s researchfound that 64 percent of food-service workers and half of retail workers receive less than a week’s notice for shifts.
For now, the shift away from on-call scheduling seems to be only gaining momentum: Earlier this week, Forever 21 was hit with a lawsuit from a former employee over unpaid on-call scheduling. And, for the seven remaining companies that Schneiderman’s office contacted (the identities of which are unknown), such momentum may soon be overpowering.
Source: The Atlantic
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.
It’s Not Just Low Pay Stressing Out Part-Time Workers
Bill Moyers - July 24, 2014, by Neha Tara Mehta - Besides struggling to make ends meet because of low wages, millions...
Bill Moyers - July 24, 2014, by Neha Tara Mehta - Besides struggling to make ends meet because of low wages, millions of part-time workers in America also face uncertainty over when they will be called in to work. Irregular schedules and last-minute notice make it hard for these workers to find other work, go to school and make arrangements for child care or caring for aging parents.
As The New York Times reported last week:
About 27.4 million Americans work part time. The number of those part-timers who would prefer to work full time has nearly doubled since 2007, to 7.5 million. According to Bureau of Labor Statistics data, 47 percent of part-time hourly workers ages 26 to 32 receive a week or less of advance notice for their schedule.
In a study of the data, two University of Chicago professors found that employers dictated the work schedules for about half of young adults, without their input. For part-time workers, schedules on average fluctuated from 17 to 28 hours a week.
“Frontline managers face pressure to keep costs down, but they really don’t have much control over wages or benefits,” said Susan J. Lambert, a University of Chicago professor who interpreted the data. “What they have control over is employee hours.”
According to the National Women’s Law Center, food service workers experience a 70 percent average variation of work hours every month. For retail workers, the variation is 50 percent and for janitors and housekeepers, it’s 40 percent.
Lawmakers across the country are beginning to notice how irregular schedules complicate the lives of part-time workers, and are taking measures to address the problem. Employees of federal agencies now have the right to request work schedule flexibilities. Workers in San Francisco and Vermont can ask for a more flexible or predictable work schedule. In a report released in June, New York City comptroller Scott M. Stringer made a case for a legislation that would give employees the chance to make such requests “without fear of reprisal.”
Congress is swinging into action on this issue as well. On Tuesday, Representatives George Miller and Rosa DeLauro introduced the Schedules That Work Act. Miller admits that the bill may meet with opposition, but thinks that it will highlight “often callous scheduling practices.”
The Guardian reports that another version of the bill is brewing in the Senate:
Senators Tom Harkin and Elizabeth Warren are co-sponsoring of the Senate’s version of the bill. Carrie Gleason, co-founder of Retail Action Project, said [that] Warren will introduce the Senate version in upcoming weeks.
A single mom working two jobs should know if her hours are being canceled before she arranges for daycare and drives halfway across town to show up at work,” said Warren. “This is about some basic fairness in work scheduling so that both employees and employers have more certainty and can get the job done.”
Although some businesses are saying the bills would represent government overreach, the clothing store Zara has already promised to start giving its part-time employees two weeks notice on their work schedules.
Source
The Fed’s Main Job Is Jobs, And A Coalition Plans To Keep It On Task
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve...
Campaign for America's Future - September 4, 2014, by Isaiah Poole - A lot of eyes will be on the Federal Reserve Friday when the Labor Department releases its August unemployment statistics. But where will the Fed’s eyes be focused? A group of activists are planning the next steps of their effort to keep the Fed focused on the continuing unemployment crisis, and keep the Fed from taking actions that will make things worse for millions still seeking work.
“We’ve got a lot of work ahead of us,” said Shawn Sebastian of the Center for Popular Democracy, who was part of a group of activists and unemployed people who confronted members of the Fed at last month’s economic summit in Jackson Hole, Wyo. That includes following up on a promise by Fed chair Janet Yellen to meet with the group in Washington and pressing a more detailed plan for how the Fed should proceed to help the Main Street economy grow.
“We are going to be looking at the full range of policy options,” Sebastian said.
The “inflation hawks” were poised to seize the narrative when the members of the Fed attended the Jackson Hole summit. These Fed members, egged on by conservative academics and policymakers, want the Fed to put the brakes on economic growth and turn its attention to fighting inflation, even though there are no signs that inflation is an imminent threat. On the contrary, wages as a percentage of economic output are at their lowest level since the late 1940s (while corporate profits as a share of the economy are at record highs), one sign that there are far more people looking for work than there are jobs for them.
What the hawks did not count on was the Center for Popular Democracy’s ragtag group of 10 unemployed people and activist supporters. They trekked to Jackson Hole to confront Fed members with their stories of struggling to find decent jobs, along with a demand that the Fed not abandon its unfinished role in rebuilding the middle-class economy, in the form of a letter endorsed by more than 70 organizations. Their biggest success, Sebastian said, was a two-hour meeting with Kansas City Federal Reserve Bank President Esther George, who just before Jackson Hole said in an interview with CNBC that it was time for the Fed to begin thinking about raising interest rates “when you see the economy getting as close as we are to full employment.”
But Sebastian and his group told George that the economy was nowhere near full employment and that the analysis of the inflation hawks was “lacking in relevance, substance and rigor.” One member of the group told of how she went from being an MBA who had risen to a management job over 15 years to being laid off and unable to find work for months, finally settling for a job that paid half as much as the job she lost.
It’s not clear what substantive effect hearing these stories had on George and other inflation hawks on the Fed, Sebastian said. “But I do hope we contributed to her thinking and we also started an engagement” with the Fed, he said. Fed members now know that when they discuss economic policy, “you can’t make decisions without public scrutiny anymore, because we’re paying attention now.”
One of the ideas that the group will refine and attempt to build consensus around would have the Fed invest directly in infrastructure bonds and similar government instruments, in much the same way that it purchased billions in bonds to prop up the financial sector in the years following the 2008 financial crash. The bond-purchasing program, known as quantitative easing, helped boost Wall Street share prices, according to most experts, but had no direct effect on job-creation or on bringing the economic recovery to communities around the country hardest hit by the crash – as the nation has now vividly seen in Ferguson, Mo.
Having the Fed directly buy bonds that would enable federal, state or local governments to fund transportation projects, school construction or other public facilities would put the Fed’s power to work in ways that directly creates jobs in the short run and assets that enhance the nation’s competitiveness and well-being in the long run.
The Fed could also better use its regulatory authority to prod the banks to pour into the economy the close to $2 trillion that is now sitting in its vaults. That hoarded cash could be put to work creating jobs and lifting the wages of working-class people.
Whatever policies take shape during the next phase of the Center for Popular Democracy’s campaign to keep the Fed focused on full employment, Sebastian says that the opening round has been a success in sending the message that “we’re not in an inflation crisis … we are in an unemployment crisis. You can’t ignore an ongoing crisis for the sake of a ghost of inflation that may or may not appear.”
The New Education Reform Lie: Why Denver Is a Warning Sign, Not a Model, for Urban School Districts
The New Education Reform Lie: Why Denver Is a Warning Sign, Not a Model, for Urban School Districts
Scott Gilpin works in advertising, so he's used to dealing with people in the promotions business. He's just not used...
Scott Gilpin works in advertising, so he's used to dealing with people in the promotions business. He's just not used to seeing them operating a local public school.
Gilpin lives in Denver, where he grew up, graduated from high school and now has two children enrolled in the public school system. Recently, when he decided to get more involved in Denver school politics, he discovered that the most rapidly growing form of school in his community were charter schools. So he determined to check one out.
When he toured his first charter, a school in the Strive Preparatory network, he couldn't help but take note of the school’s staffing structure, which could have supported a mid-sized promotional campaign: his guide was the chief of external affairs for the network, and the school boasted a senior director of development and an associate director of recruitment, too.
Gilpin—who sent his children to the local public school they were zoned for, as his parents had done—wondered, "What kind of local public school needs to recruit its students?"
As Gilpin would learn, lots of new Denver schools are that "kind of school."
Across the city, Denver has opened 27 charter schools in the last five years, and plans to start up six more in the 2016-17 school year – effectively doubling the number of charter schools in the city in less than six years, according to a recent report from the Center for Popular Democracy, a left-leaning research and advocacy organization in Washington, DC. Yet this rush to expand charters is hardly justified by the performance of the ones already in operation.
According to CPD, based on the school performance framework Denver uses to evaluate its own schools, "Forty percent of Denver charter schools are performing below expectations.” And of those schools, 38 percent are performing significantly below expectations.
Nevertheless, numerous articles and reports in mainstream media outlets and education policy sites enthusiastically tout Denver as the place to see the next important new "reform" in education policy in action.
"Reformers are paying close attention to Denver," notes David Osborne of the Progressive Policy Institute in an op-ed recently published by U.S. News & World Report. Osborne declares Denver's education reform effort a success based on evidence of gains in "academic growth" and on-time high school graduation. He says Denver can show the rest of the nation "a way to transform … 20th-century school systems, built on the principles of bureaucracy, into 21st-century systems, built to deliver continuous improvement."
Recent reports from other Beltway-based think tanks, on both the right and the left of the political spectrum, also hail Denver as a model for advancing "school choice" and charter schools that have the power to "transform" the education of low-performing students. Earlier this year, the Brookings Institution named Denver the second-best of the nation's 100+ largest school districts that provide parents with options for "school choice."
But Gilpin and other Denverites tell a different story about Denver-style urban school reform.
Instead of a glowing example, they point to warning signs. Rather than a narrative of success, their stories reveal disturbing truths about Denver's version of modern urban school reform – how policy direction is often controlled by big money and insiders, why glowing promises of "improvement" should be regarded with skepticism, and what the movement's real impacts are, especially in communities dominated by poor families of color.
'Eye Opening' Revelations
Gilpin's initial foray into Denver school politics began in 2011 when he joined in a campaign in support of a new bond initiative to raise new funding for, "school renovations and classroom enrichment programs,” as the Denver Post put it.
The proposals passed in the 2012 ballot, but Gilpin's plunge into citizen involvement brought him up close to the often-unseen inner workings of contemporary urban education reform in Denver.
"What I found was eye-opening," Gilpin tells me in a phone conversation. Among those eye-openers were the intense lobbying and marketing efforts being undertaken to promote charter schools; their powerful and elite corps of backers; and the staggering amount of money, from taxpayers and private donors, that is being funneled to them.
Specifically, Gilpin saw firsthand how bond money intended for renovations and instructional programs was instead used to purchase a 13-story building downtown to house, in part, a new charter school.
Gilpin then learned that the district's chief operations officer, David Suppes, had signed the intent-to-purchase agreement for the new building on August 10, nearly two weeks before the board approved the bond initiative on August 23. Gilpin also saw how school leadership overlapped with the vendors and contractors used by the schools, potentially creating conflicts of interest and cronyism.
As the Colorado Independent reports, two members of the controlling school board majority in 2013, Barbara O’Brien and Landri Taylor, headed up organizations that contracted directly with the city school district. The two consistently voted with attorney Mike Johnson, whose law firm earned $3.8 million from the district during his tenure on an advisory committee before stepping up to the board.
Taylor, who was appointed to the board in 2013 and had the advantage of running as an incumbent in 2015, was well known as a key backer of opening new charter schools. After winning the election in 2015, he abruptly resigned earlier this year for family reasons.
To replace Taylor, the board picked MiDian Holmes who, according to Chalkbeat Colorado, is "an active member in the school reform advocacy group Stand for Children," a pro-charter organization that has made large donations to school board candidates running on a pro-reform platform. (Holmes eventually resigned when background checks revealed she is a convicted child abuser, and the board seat is, at this date, vacant.)
This tight, sometimes hidden, collusion in Denver school governance has led Gilpin to believe Denver reform is the product of "an elite circle" of people with little to no input from the public. Other careful observers agree.
"Forced on Our Community”
"They invite the community to look at plans already being put into place," Earleen Brown tells me about the Denver school board in a conversation over the phone.
An African American grandmother from a Northeast Denver community populated predominantly by non-white, poor families, Brown sees the Denver school reform model from a very different vantage point from where Gilpin sees it. (Denver schools are majority Latino and African American, with 70 percent of students classified as low-income and nearly a third non-native English speakers.) But she shares many of his concerns.
Like Gilpin, Brown's involvement in Denver school politics began with a bond referendum, this one in 2008. In that effort, Brown contends, there was widespread belief money would go toward paying for either a new traditional comprehensive public high school in Northeast Denver or for a substantial renovation of the existing Montbello High School.
In 2009, after the bond passed, district officials approached parents in the Montbello neighborhood, a mostly African American community, with a set of four options for the struggling high school. The options followed guidelines from the Obama administration, which ranged from changing staffing to closing the school. Parents, Brown recalls, created a petition campaign that gathered over 300 names in favor of the option labeled "transformation," the choice generally agreed to be the least disruptive to the school.
But when district officials came back with their decision, they had picked a different option: turnaround, generally regarded as a much more disruptive process. And the next year, Montbello parents learned yet another option had been chosen for their school: closure. The last class to graduate from Montbello was in 2014, and the school is now no more.
Now the community has – instead of the traditional, comprehensive high school parents requested – an array of new charter schools. Housed in what used to be Montbello High are two innovation schools (schools that get much of the flexibility of charter schools but are not privately operated). One school has a very specialized program focused on international studies. The other is an arts-focused school that is already being scaled back due to academic distress.
Some of the new schools serving the Montbbello community are well known for enforcing the harshest forms of school discipline disproportionally on students of color. A 2015 report from a Denver-based education justice and civil and immigrant rights organization tracked Denver school discipline incidents – such as out-of-school suspension, expulsion, or referral to law enforcement – and the correlation of those incidents to race.
What the report shows, according to a review in the Colorado Independent, is that students of color in Denver schools are 219 percent more likely to receive harsher discipline than their white peers. The disparity is particularly acute among charter and innovation schools. According to the report, nine of the ten worst offenders in Denver are charter or innovation schools. The schools that replaced Montbello high are numbers five and two on the 10 worst list, with racial gaps in punishment that are 990.9 and 1,361.4 percent wider. (The worst school, a charter with a racial punishment gap of 2,991.2 percent, is now closed.)
The discriminatory treatment toward her community has led Brown to believe the whole Denver reform model has been "forced on our community."
What Big Money Wants
While some parents see the effort to remake Denver’s schools as an agenda controlled by a small circle of local actors, others point to big money and influence coming from outside.
When Emily Sirota and her family moved to Denver in 2007, she and her husband quickly became concerned the schools their children would eventually attend were too focused on test scores and competition, and that leadership was "divorced from the desires of families," she tells me in a phone call. Her concerns motivated her to run for school board in 2011.
The quick lesson Sirota learned about Denver education politics was that connections to big money had more to do with determining opposing forces than traditional party lines.
Sirota, who is a Democrat, aligns politically with many in Denver who participate in education advocacy and serve on appointed education committees and elected boards. But because she did not align with the reform orthodoxy of school closures and charter school expansions (a wave of reform that many trace to Michael Bennet, a former investment banker who was superintendent of the district from 2005 to 2009 and is now a Democratic U.S. Senator for Colorado), she was not on the side of big money.
As The Nation's John Nichols reported at the time, big money lined up with Sirota's opponent Anne Rowe. Rowe, a former owner of a Denver publishing business, has strong ties to the Denver Public Schools' political establishment and was founding co-chair of A+ Denver, an influential advocacy group that backs charter schools and the Denver reform model.
Nichols notes that Rowe received strong financial support from "donors who, in several cases, have ties to groups that promote charter schools and vouchers" across the country, including the Alliance for Choice in Education, Stand for Children, and Democrats for Education Reform.
That funding disadvantage – Rowe out-raised Sirota by more than $90,000 – was "one of the biggest reasons" she lost, Sirota contends. An article for In These Times points out that many of the same donors who funded her opponent also funded two other establishment candidates – Allegra Haynes, who won her race, and Jennifer Draper Carson, who lost hers by just 73 votes.
"Denver school board elections are just the latest examples of elections being bought," says Jeannie Kaplan, an eight-year veteran of the Denver school board. Kaplan, who has lived in Denver for over 40 years and raised children in the local public schools, first ran for school board in 2005 in an open seat contest she won. Kaplan was term-limited out in 2013 and could no longer run. Two years later, deep-pocketed privatizers poured money into the school board race and swept the election to take a 7-0 majority. As Kaplan describes on her personal blog, a key to the election sweep was late money coming into the race to preserve the at-large seat held by the pro-reform Haynes.
Campaign funding reports show that Haynes outspent her opponent Robert Speth by more than 2 to 1.
An article in the American Prospect on the increasing role of big money in school board races reports that Democrats for Education Reform, a PAC founded by hedge fund managers that pushes hard to expand charter schools nationwide, ”contributed a quarter-million dollars to launch the Raising Colorado super PAC, which went on to spend $90,000 running ads and mailing flyers" in support of Haynes and Lisa Flores, another pro-reform candidate who also won. (According to the Center for Media and Democracy, DFER has poured millions of dollars of "dark money" into elections in Colorado and other states to tilt elections to candidates who favor charters and other "reform" measures.)
As Kaplan writes in a blog post,”Public education in Denver, despite what you may have heard or read about in the press, is a system in chaos. It is a system run by a cabal. It is a system where politics, pardon the expression, trumps good policy and the truth."
'Highly Politicized’
So how did education reform in Denver become mostly about politics and power?
"Denver school reform has become highly politicized because the ideas supporting it are highly controversial," Chris Lubienski, an education scholar and a professor of education policy, organization, and leadership at the University of Illinois, tells me over the phone.
From 2011 to 2015, Lubienski and a team of other education researchers conducted a study to ascertain how intermediary organizations (IOs) supported by foundations and philanthropists influence public opinion on education in Denver. These organizations, which “serve a number of functions in school reform, including advocacy, consultation, policy design, alternative teacher and leadership preparation, and research,” tend to promote reforms that "are often highly contested by parents, public education advocates, and teachers unions," the report contends. "In addition, the research evidence on the efficacy of these reforms is similarly unsettled."
"In Denver, reform ideas emerged from a very small handful of people," Lubienski tells me. "Reformers who work there may believe the origin of these ideas is in research and is homegrown,” but he points to influence centers outside Denver, such as Silicon Valley and Washington, D.C., as more likely incubators of these reforms.
Lubienski also questions claims from Denver reform proponents that a democratic process produced their policies. "Their origins are not as democratic as is suggested," he shares. "Having policy decisions result from more of a consensus-based approach is admirable. But in Denver, that consensus is not as well developed as many people say it is."
In Denver, according to the study, only three foundations – the Daniels, Piton, and Donnell-Kay Foundations – fund most of the IOs driving change in the system. "Without this hub of funding," the report concludes, "and alignment around the importance of [these] reforms, it is unlikely that such reforms would have moved forward at the size and scope that we witness in Denver."
The study from Lubienski et. al., also cites the influence of a small number of national foundations, principally the Bill and Melinda Gates Foundation, that advocate for expansions of charter schools. Other sources, such as the Denver Post, document the influence of the Walton Family Foundation, the philanthropic organization created by the wealth of the family that owns the Walmart retail chain. According to the Post, in 2011, WFF awarded Denver with nearly $8 million in grant money, "more than many of the nation’s largest cities," because of "the strength and profile of [Denver's] charter-school world."
The Problem With 'Portfolio' Reform
Though the evidence that the reforms these foundations are pushing actually work is nowhere near as convincing reformers would have you believe, efforts to root charters deep within Denver’s educational soil continue apace.
The mechanism reformers have used to seed the growth of charters across the city is the "portfolio model” — an approach that “shifts decision-making away from district superintendents and other central-office leaders,” according to the National Education Policy Center. Four strategies form the core foundation of such an approach: “school-level decentralization of management; the reconstitution or closing of ‘failing’ schools; the expansion of choice, primarily through charter schools; and performance-based (generally test-based) accountability.”
In Denver's case, the portfolio approach has led to the rapid expansion of charters while closing supposedly failed public schools. As Osborne writes in his U.S. News op-ed, "Since 2005 [Denver] has closed or replaced 48 schools and opened more than 70, the majority of them charters." Of Denver's 223 schools, 55 are charters and another 38 are "innovation schools" which Osborne describes as being "like charters."
To feed the system's numerous new charter schools, Denver has implemented an enrollment process that gives parents the opportunity to list up to 5 schools for their children to attend rather than simply relying on proximity. To help guide parents in making their school choices, the district uses a school ranking system with color-coded labels for schools – blue at the top (for "distinguished), green, yellow, orange, and red (for "accredited on probation") at the bottom. The rankings are used not only by parents, but also by the district to determine which schools need interventions and closure.
As Chalkbeat notes, Denver also has "enrollment zones" where students "are given a preference at the schools in the zone and are guaranteed a spot at one of them, though not necessarily their first pick. The zones are set up to encourage — some would say force — families to participate in the choice process."
But research experts are skeptical the portfolio approach alone will yield good results.
In an op-ed for Education Week, Montclair State University professor Katrina Bulkley joins with Columbia Teachers College professors Jeffrey Henig and Henry Levin to caution, "The portfolio-management approach to urban education is a work in progress."
NEPC adds further caution, writing, "There exists a very limited body of generally accepted research about the effects of portfolio district reform."
NEPC managing director William Mathis, one of the report’s authors, tells me that it is, in particular, the combination of reforms that confounds research into portfolio results. "There are so many factors at play that describing causality is problematic,” Mathis notes. “Portfolios mean different things in different places.”
"If you don't change what happens in the classroom, you don't really change anything," Mathis contends. And he finds little evidence a portfolio approach will necessarily result in improvements in curriculum and instruction.
Former school board member Jeannie Kaplan also questions the success of such reforms. In an op-ed published last year in the Denver Post, Kaplan spotlighted numerous negative outcomes after many years of portfolio-based reform, including growing achievement gaps between white and non-white students, a school system stubbornly segregated along racial lines, and high staff turnover rates in schools.
Her op-ed pointed to a 2015 analysis from the University of Washington’s Center on Reinventing Public Education (an organization that advocates the portfolio approach), which looked at the 50 largest urban school districts in the country that have been actively engaged in education reform. Kaplan noted that, "Of them, Denver Public Schools was dead last in both reading and math, with gaps of 38 percent and 30 percent respectively. The average for the other districts was around 14 percent for each subject.
“As for graduation rates, Denver ranked 45th out of the 50 districts."
Whose Choice?
So far, less than 27 percent of families have opted to participate in Denver’s choice program, according to a Chalkbeat analysis. The remaining 73 percent have chosen to remain in their current local schools.*
That same analysis attributes the low participation rate to the extremely small percentage of parents who opt to "choice out of" their current school when their children are not in a "transition year" – for instance, moving from an elementary school into a middle school. An older article in the Denver Post reported numerous parents feeling "stressed out" over the choice process.
That said, some parents do find there are advantages to the choice system. For instance, when Scott Gilpin looked to enroll one of their daughters in a school, they used the enrollment process to "choice into" an innovation school that offered a dual language program. Similarly, when Emily Sirota looked for a school for her oldest daughter, she found an innovation school that had an expeditionary approach more to her liking.
But there's also evidence Denver's system of choice leads to a lot of outcomes that look more like forced choice. For instance, Gilpin notes that the enrollment zones set up to encourage choice often result in students being placed in charters whether their families indicated that as their top choice or not.
When Sirota visited the neighborhood school her family was zoned for, she noticed extremely large class sizes and the lack of adequate facility space for the students. Upper grades in the elementary school were housed in portable buildings. No doubt, such conditions dis-incentivize parents from choosing that school.
"Choice sounds good," says Earleen Brown, but "there aren't five high performing schools in our area to choose from," she says. Although there are some "blue schools" in Brown's Northeast neighborhood, she argues their high ranking is often mostly due to Denver's methodology that rewards schools for recent growth in test scores, even when the percent of students who are on grade level in the school is still quite low.
Also, many of the traditional public schools in Brown's community have been closed or had charter schools "co-located" in them (an arrangement where a charter takes over a portion of a public school's facility). So for some families in Northeast Denver "being able to enroll in a nearby traditional public school is a choice you don't get," she notes. Certainly, for parents who wanted Montbello High School to serve as a traditional, comprehensive high school, that choice was simply overruled by the district.
"We really have no choice in our community," Brown maintains.
What Parents Want
Given all of the obvious flaws and questionable results attached to Denver’s current reform model, one can’t help but wonder why is this approach is being lifted up as a "model of excellence" to be replicated across the nation.
Of course, we've seen this type of bluster in support of charter schools and education reform before. For years, the New Orleans school system was held up as a reform model for other urban communities to emulate.
NOLA schools, essentially wiped out by Hurricane Katrina, provided reformers with "a clean slate" to remake an urban public school system based on their own ideas alone, which consisted primarily of converting the district into a nearly all charter school entity and turning school enrollment into a choice process.
Former Louisiana governor Bobby Jindal claimed NOLA-style reform had laid down a path for schools everywhere else to follow. David Osborne, in another of his laudatory commentaries about education reform, wrote in 2015, "New Orleans made charter schools work." Politico reported, “Mayors and governors from Nevada to Tennessee" were in full throttle campaigns to "replicate the New Orleans model.”
Except that, for a host of reasons, the New Orleans model turned out to be impossible to replicate. In fact, in Denver today there’s little discussion of education reform being patterned after New Orleans. In Osborne's promotion of the Denver model, in fact, he contrasts the Denver approach with New Orleans’, and lauds it for being an approach to education reform that hasn't required state intervention or other forms of "insulation from local electoral politics."
But it's not clear that the form of electoral politics practiced in Denver has yet given parents what they want as much as it has delivered outcomes desired by an elite few.
In Earleen Brown's case, what she wants is pretty specific: She'd like to see the district act on her community's desire to have a comprehensive, public high school.
Jeannie Kaplan advocates the adoption of models she has seen work in the past that provided schools resources to stay open longer hours and provide a fuller range of services including tutoring, health care, and extra-curricular activities. "Now we call these 'community schools,'" she explains. What Denver needs most, she believes "is the money [to fund] this."
"We need more focus on the schools in our neighborhoods, rather than popping up new charter schools here and there," Emily Sirota maintains. And she'd like to see smaller class sizes, guaranteed recess for kids, and a more equitable system that ensures a high level of quality curriculum and instruction in all schools, not just the ones the better-off children attend.
As for Scott Gilpin, he wants to see spending on education in Denver going more toward the classroom instead of to administration, consultants, and school board elections. He thinks less emphasis on testing would not only free up more time for instruction; it would make teachers' jobs more rewarding — which would, in turn, lower teacher attrition rates.
What Denver parents seem to want most from education policy in their community is for leaders to find a different way to talk about these issues, and to solicit, and honor, parent input before decisions are made.
Whether they will ever get what they want in this regard remains an unsettlingly open question.
* Though officials from Denver Public Schools argue that in the transition grades (kindergarten and grades 6 and 9) participation levels are now at 84%, overall participation rates across all grades remain at just 26.5%.
Jeff Bryant is director of the Education Opportunity Network, a partnership effort of the Institute for America's Future and the Opportunity to Learn Campaign. He has written extensively about public education policy.
By Jeff Bryant
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