Nan Goldin, Activists Bring Sackler Protest to Harvard Art Museums
Nan Goldin, Activists Bring Sackler Protest to Harvard Art Museums
“Protestors threw pill bottles on the floor of the atrium, handed out pamphlets, and held banners and posters with...
“Protestors threw pill bottles on the floor of the atrium, handed out pamphlets, and held banners and posters with phrases like “MEDICAL STUDENTS AGAINST THE SACKLERS,” and “HARM REDUCTION NOW/TREATMENT NOW.” A number of speakers gave speeches about the Sacklers and the opioid crisis in the atrium, including Jennifer Flynn Walker of the Center for Popular Democracy and Goldin, who began organizing against Purdue and the Sacklers, who are major donors to cultural institutions throughout the United States and Europe, following treatment for opioid addiction last year. She said she became addicted after being prescribed OxyContin in 2014 following wrist surgery.
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Report: Black Unemployment in Bay Area More Than Three Times the Average
SF Examiner - March 6, 2014, by Chris Roberts - After 200 unanswered job applications, Ebony Eisler finally landed a $...
SF Examiner - March 6, 2014, by Chris Roberts - After 200 unanswered job applications, Ebony Eisler finally landed a $15 an hour position as a medical assistant in Mission Bay. But since she's a temp worker, she earns less than her co-workers, who make $20 to $25 per hour for the same work.
Still, as a black woman in San Francisco, she is fortunate. The unemployment rate for black people in the Bay Area is 19 percent, according to 2013 U.S. Census Bureau data crunched by the Economic Policy Institute.
Blacks are unemployed at more than three times the rate of workers of other races, according to this data. The Bay Area finished 2013 with a 6 percent total unemployment rate, according to the Bureau of Labor Statistics.
In San Francisco, unemployment has dropped rapidly since Mayor Ed Lee took office in January 2011, when the jobless rate was 9.5 percent. The most recent figures from the state Employment Development Department — which does not publish jobless rates by race — pegged The City's unemployment rate at 3.8 percent, by far the rosiest employment figures since the first dot-com boom at the turn of the millennium.
The wide gulf in the jobless rate between ethnic groups living in the same city belies the idea that The City and state have fully recovered from the Great Recession, according to advocates with the leftist Center for Popular Democracy.
The group released the unemployment figures by ethnicity Thursday as part of a national campaign to convince the Federal Reserve Bank to keep interest rates low in order for the economic recovery to trickle down to all workers.
So far, "the recovery is based on white America alone," said Eisler, 36, a Bayview resident who holds an associates degree and a certified nursing assistant license. Her current job, the best she could find, does not cover her $1,800 a month rent, she said.
Statewide, the jobless rate for black people is 14 percent, according to the Economic Policy Institute, compared to 6.1 percent for whites, 8.5 percent for Latinos and 5.9 percent for Asians.
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Some Retailers Promote Decision to Remain Closed on Thanksgiving
New York Times - November 14, 2014, Steven Greenhouse - This...
New York Times - November 14, 2014, Steven Greenhouse - This Thanksgiving, the open-versus-shut debate has grown even louder.
Walmart, Kmart, Macy’s, Target, RadioShack and many other major retailers are proclaiming that they will be open on Thanksgiving Day to make shoppers happy. But Costco, Marshalls, GameStop and T. J. Maxx are riding the backlash against holiday commerce by boasting that they will not relent: They will remain closed that day to show that they are family-friendly and honoring the holiday.
But even as retailers vie for every dollar during a very competitive season, Tony Bartel, the president of GameStop, views this debate as open-and-shut. “For us, it’s a matter of principle,” said Mr. Bartel, whose company has 4,600 stores nationwide. “We have a phrase around here that we use a lot — it’s called ‘protecting the family.’ We want our associates to enjoy their complete holidays.”
“It’s an important holiday in the U.S., and our employees work hard during the holiday season, and we believe they deserve the opportunity to spend Thanksgiving Day with their family and friends,” said Richard A. Galanti, executive vice president and chief financial officer at Costco Wholesale, the nation’s second-largest retailer after Walmart. “We’ve never opened on Thanksgiving, and when the trend to do so occurred in the last couple or three years, we chose not to because we thought it was the right thing to do for our employees.”
More than two dozen major retail chains plan to stay dark on Thanksgiving, including Barnes & Noble, Bed Bath & Beyond, the Burlington Coat Factory, Crate and Barrel, Dillard’s, Nordstrom, Neiman Marcus and Patagonia.
Johan Araujo, a senior game adviser at GameStop’s flagship store in Herald Square in Manhattan, applauded his company’s decision. “It’s good to know they’re thinking about us and what we want,” he said. His plans involve cooking the turkey for his fiancée and friends this year.
Sidney Bartlett, the manager of Mr. Araujo’s store, said that when the store used to be open on Thanksgiving — it started closing for the holiday last year — it was painful to figure out which employees to inconvenience and schedule to work that day. “I thought it’s great the C.E.O. decided to close for the holiday,” he said.
He said it saddened him to see so many stores open that day. “We’ve shifted as a nation — it’s not so much about the family, it’s all about business,” said Mr. Bartlett, who is studying for an M.B.A. at Columbia.
“We don’t believe we will lose any ground to competitors,” said Mr. Bartel, the company’s president. “Even if we lose some ground to competitors, we are making it corporate principle — we have committed to associates that we will not open on Thanksgiving.”
Pushed by competitive forces, some malls are opening on Thanksgiving Day for the first time. In Paramus, N.J., Westfield Garden State Plaza and Paramus Park will open from 6 p.m. to 11 p.m., prodded by Macy’s decision to open its stores in those malls.
Walden Galleria, a mall with over 200 stores near Buffalo, threatened to fine retailers about $200 an hour if they don’t open at 6 p.m. on Thanksgiving Day.
Carrie Gleason, director of the Fair Workweek Initiative, a campaign pushing retailers to adopt schedules that are more friendly to workers, said, “What’s different from years past is there are more and more retailers coming out publicly and saying, ‘We’re staying closed on Thanksgiving.’ ” They want to demonstrate to their customer base that they’re family-friendly.”
More than 55,000 people have signed a petition on change.org urging Target to remain closed on Thanksgiving, while the Boycott Black Thursday Facebook page has more than 87,000 likes.
Walmart officials say they are doing consumers a favor by opening on Thanksgiving. To reduce the long lines that have upset many shoppers on Black Friday, Walmart announced on Tuesday that it would spread Black Friday over five days.
“It became Black Friday, then it became Thursday, and now it’s becoming weeklong,” said Duncan Mac Naughton, chief merchandising officer at Walmart. “Maybe it’s going to be November.”
Deisha Barnett, a Walmart spokeswoman, said many shoppers were happy that the company would be open on Thanksgiving. “We’re in the service industry, and we’re just like airports and grocery stores and gas stations that are open on Thanksgiving so they can provide what customers need,” she said. “We’ve been open on Thanksgiving for 20-something years.”
Walmart will again face a wave of protests this holiday season. Our Walmart, a union-backed group of Walmart workers pushing for higher pay, said on Friday that it would hold protests at 1,600 Walmarts on Black Friday.
After keeping almost all its stores closed last Thanksgiving, the financially troubled RadioShack said that it planned to open its stores from 8 a.m. to midnight this Thanksgiving. But after some employees voiced dismay, the company changed course to give them time for their feast. Its stores will open from 8 a.m. to noon, close for five hours and reopen from 5 p.m. until midnight, and again at 6 a.m. on Friday.
The University of Connecticut Poll conducted a survey last November that found that nine out of 10 Americans said they didn’t plan to spend Thanksgiving hunting for bargains, while 7 percent said they planned to visit stores on Thanksgiving Day.
The poll of 1,189 adults, with a margin of sampling error of plus or minus 3 percent, found that 49 percent disapproved of stores opening on Thanksgiving Day, with 16 percent approving and 34 percent neutral.
Last Thanksgiving, J. C. Penney, Kohl’s, Macy’s, Sears and Target all opened at 8 p.m. This year, Kmart plans to open at 6 a.m. and remain open for the next 42 hours.
“All these companies were closed for decades,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union. “What’s changed is that some have chosen to remain open, and those companies should be getting demerits. People should ask, ‘Is this the sort of society we want to live in that people aren’t even given the option of celebrating holidays?’ ”
He said that if stores decided to open on Thanksgiving, working that day should be voluntary, not mandatory. He said many part-time workers were eager to work on Thanksgiving.
Mr. Appelbaum praised the Macy’s store in Herald Square for using only workers who volunteer to work that day
Macy’s plans to open at 6 p.m. this Thanksgiving, two hours earlier than last Thanksgiving — and Sears is doing the same thing. “Customer response to the 8 p.m. opening last year was exceptionally strong,” said Jim Sluzewski, Macy’s senior vice president for communications. “At Macy’s Herald Square store, we had 15,000 customers waiting outside when the doors opened. The experience was similar across the country. Many customers asked why we couldn’t open a little earlier.”
In contrast, he said Bloomingdale’s, a Macy’s subsidiary, would remain closed on Thanksgiving Day, saying it was “less promotional” than Macy’s.
Roger Beahm, executive director of the Center for Retail Innovation at Wake Forest University, said it was smart competitively for retailers to open on Thanksgiving. “Did the folks who questioned the sanctity of Thanksgiving learn a lesson?” he said. “A good start to the holiday retail season can really make your year, and a late start can really cripple retailers.”
Dan Evans, a spokesman for Nordstrom, said his company kept its stores closed on Thanksgiving, with a few employees completing holiday decorations that day, before they are unveiled on Black Friday.
“If our customers really wanted us to open on Thanksgiving, that’s what we’ll do,” Mr. Evans said. “We used to be closed on the Fourth of July. We used to be closed on New Year’s Day, but customers wanted us to be open on those days, so now we’re open on those days. Our customers guide us. We don’t guide them.”
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Use of Employee Scheduling Software Raises Union Concerns About Seniority, Work Hours
Reproduced with permission from Daily Labor Report, 97 DLR C-1 (May 20, 2014). Copyright 2014 by The Bureau of National...
Reproduced with permission from Daily Labor Report, 97 DLR C-1 (May 20, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) <https://www.bna.com/>
Bloomberg BNA - May 19, 2014, by Rhonda Smith — Although employee scheduling software is helping employers control labor costs and boost productivity, its impact on retail and restaurant workers is far more bleak, advocates for employees told Bloomberg BNA May 8-19.
“In New York, we're interviewing workers at all big retail chains—Gap, Banana Republic and others,” said Stephanie Luce, an associate professor of labor studies at City University of New York. The interviews are part of an ongoing research project focused on scheduling challenges facing retail workers in New York City.
“What is prevalent in our interviews is just huge frustration with scheduling,” she said. “It's arbitrary. It feels like it's unpredictable. And it can change from week to week or season to season. So this concern about who gets to set the schedule, and do employees have any voice or protections in that, is very prevalent.”
‘On Call' Scheduling Has Drawbacks
The Retail Action Project, a New York-based campaign sponsored by the Retail, Wholesale and Department Store Union, released a video May 1 highlighting the conundrum retail employees face daily over their work schedules. RWDSU is an affiliate of the United Food and Commercial Workers.
“Even though the technology enables [employers] to predict 80 percent of their labor costs well in advance, they are scheduling workers according to the smaller percentage of hours that they can't predict,” Carrie Gleason at the Center for Popular Democracy said.
“Workers are unable to get sufficient hours, and are forced to endure ‘on call' scheduling, where they must wait by the phone to see if they'll be called upon to work,” RAP organizers said on the union's website. “They can't take other jobs, or do anything else that would interfere with their unstable, unpredictable work hours.”
The video is part of an effort to educate workers and policy makers about the need for “fair, stable and predictable schedules for millions of underemployed low wage workers in one of America's biggest job creating industries,” RAP said.
Employment of retail sales workers is projected to grow 10 percent from 2012 to 2022, according to the Labor Department. That growth is about as fast as the average for all occupations, the agency said, but because many workers leave retail there will be a large number of job openings in that sector.
There were 4.6 million retail jobs in 2012, the agency said. It projected that 450,200 will be added in that sector by 2022.
Wanted: ‘Family-Sustaining' Practices
Carrie Gleason, director of a new initiative at the Center for Popular Democracy that focuses on work scheduling issues, told Bloomberg BNA May 16 that new policy protections are needed to ensure “family-sustaining practices” in low-wage sectors.
The technology currently available could be used to actually improve scheduling practices for workers, she said.
“Burgeoning low-wage industries are now relying heavily on a part-time workforce and increasingly using scheduling technology according to fluctuating market demand,” she said. The ultimate result for workers is “very little say in how they work and when they work.”
Gleason also said, “Even though the technology enables [employers] to predict 80 percent of their labor costs well in advance, they are scheduling workers according to the smaller percentage of hours that they can't predict.”
Giving workers more access to the technology would allow them to self-schedule, she said, adding that this would really elevate the quality of workers' jobs. “But, unfortunately, companies like Macy's are not using the technology to the workers' potential,” she said.
Unions have criticized Macy's for not considering employee seniority when using scheduling software to decide who works and when.
Some Retailers Address Scheduling Concerns
Retailers and restaurants in some cities have taken steps to address workers' scheduling concerns, either because they made a business decision to do so or union members pushed for changes during negotiations over collective bargaining agreements.
Employers cited as trailblazers include United Parcel Service of North America Inc., Costco Wholesale Corp., Lord & Taylor, In-N-Out Burgers Inc., and, after new contracts were negotiated, Macy's and Bloomingdale's Inc. in New York City.
All part-time workers at Costco receive their schedules at least two weeks in advance and are guaranteed a minimum of 24 core hours each week, according to a policy brief the Center for Law and Social Policy and two other groups released in March (49 DLR A-6, 3/13/14).
“We want people to work for us who consider us a career,” Mike Brosius, the company's assistant vice president of human resources, said in the brief. “Long-term employees are more productive and serve the needs of our customers better. So we give our employees what's fair and what they need to make a living.”
In a Harvard Business Review article titled “Why ‘Good Jobs' Are Good for Retailers,” Zeynep Ton, an adjunct associate professor of operations management at the Massachusetts Institute of Technology's Sloan School of Management, highlighted Costco, Trader Joe's, QuikTrip and Mercadona, a supermarket chain in Spain. She said these retailers invest in their employees and, in return, reap healthy profits.
“Not surprisingly, I found that unpredictable schedules, short shifts, and dead-end jobs take a toll on employees' morale,” Ton wrote. “When morale is low, absenteeism, tardiness, and turnover rise, increasing the variability of the labor supply, which, of course, makes matching labor with customer traffic more difficult.”
Unions have pushed to shape employers' scheduling policies in collective bargaining agreements.
Union Turns to NLRB for Help
UFCW Local 888, in East Rutherford, N.J., filed an unfair labor practices charge April 28 with the National Labor Relations Board against Century 21 Department Stores LLC. The family-owned, discount retail clothing company operates eight stores in New York and New Jersey and plans to open another one in Philadelphia, a company spokeswoman said May 20.
In its charge, the union alleged that Century 21 refused to bargain “over the implementation and effects of a change in the work schedule system at its Manhattan facility, in violation of the National Labor Relations Act.”
“Until two years ago, we had no issue with scheduling,” Max Bruny, president of UFCW Local 888, told Bloomberg BNA May 16. “Everyone had a fixed schedule. The model was full-time employment. We had members there for 40 years. They had a good schedule [and] good predictability.”
Now, workers are being assigned fewer hours or shifts that require them to work later than they traditionally have—regardless of seniority.
The new scheduling system is “hard on the workers' life—a nightmare,” Bruny said.
Employees who have worked for Century 21 for decades are now being scheduled to work erratic hours, sometimes at night, he said.
“Grievances we're filing relate to workers not being able to schedule for school or take care of sick family members,” Bruny said.
ACA Could Lead to Drop in Workers' Hours
Neil Trautwein, vice president and employee benefits counsel at the National Retail Federation, told Bloomberg BNA May 19 that the Affordable Care Act could be a factor in employer decisions about how many hours employees are scheduled to work. The NRF represents retailers, chain restaurants and grocery stores.
ACA rules mandate that employers with 50 or more full-time workers provide health care coverage. Anyone who works at least 30 hours a week is considered a full-time employee. A tax penalty of as much as $3,000 per employee is levied for noncompliance.
“The 30-hour definition under the ACA is unnecessary and distorts how we manage employees,” Trautwein said.
The NRF supports the Save American Workers Act (H.R. 2575), proposed legislation that calls for raising the threshold from 30 hours per week to 40 hours per week. The bill's backers say this would preserve employee wages and working hours.
“There will be an [employer] incentive, particularly for less well-performing employees, to be held below 30 hours,” Trautwein said. “That's a natural consequence of the ACA structure.”
He added that employee scheduling software also helps employers move high-performing workers into certain positions at certain times.
“Broadly speaking, part-time jobs have been valued in retail and chain restaurants, particularly over the years because of flexibility they allow to wrap work around school or other family responsibilities,” Trautwein said. “A lot of part-time workers aren't interested in working a large number of hours.”
Union Wants More Input About Schedules
UFCW Local 888, which represents more than 2,500 workers at Century 21, would like more input about the new scheduling system and its impact on workers, Bruny said.
“[Century 21] says we should negotiate for all the stores at one time in two years,” when the union's five-year contract with the stores expires, he said.
“Our argument is, ‘This is a drastic change in the workers' lives,' ” Bruny said. “Workers are becoming part-timers overnight. I think that should trigger negotiations. That has to be bargained collectively before a change can be made.”
Bruny also would like to negotiate with Century 21 over whether hourly employees can be cross-trained so they are prepared to work in different store departments should they agree to do so based on the scheduling system. “That would make it easier on the workers,” he said.
Without negotiating over such matters, Bruny added, “we are losing quite a few longtime, full-time workers.”
A Century 21 spokeswoman declined to discuss the NLRB charge, but said to ask “Kronos directly for a statement.”
Kronos Inc. is a workforce management company in Chelmsford, Mass., that sells electronic scheduling systems to organizations. The company did not respond to a Bloomberg BNA request for comment on the NLRB charge UFCW filed against Century 21.
Macy's West Scheduling Proposal
During recent contract negotiations in California, leaders of UFCW Local 5 in San Jose described as “problematic” a Macy's West proposal to implement an electronic scheduling system the company calls “My Schedule Plus.”
“While the computer-based program would create greater scheduling flexibility and an opportunity for more hours for those that want them,” the union said May 5 in an online post, “without modification it would eliminate base schedules and ignore seniority around shift selection.”
Mike Henneberry, a spokesman for UFCW Local 5, told Bloomberg BNA May 8: “At first the company said, ‘We can't change it.' But it turned out they could.”
Macy's did not respond to a Bloomberg BNA request for comment.
Henneberry said Kronos created the Macy's scheduling system.
Charles DeWitt, vice president of business development for Kronos, said such software can be adapted to suit employers' unique needs.
“If the employer wants to maintain a base schedule or respect seniority, it can,” he told Bloomberg BNA May 12. “Various employers have different policies. With the Kronos system, we've tried to capture all that in a system and let retailers, hospitals, and manufacturers put their policies in place.”
Respecting Employee Seniority
Members of RWDSU Local 3 in New York in 2012 ratified a five-year collective bargaining agreement with Bloomingdale's that gave some 2,000 employees at the company's flagship store in New York City more control over hours and scheduling, the union said (86 DLR A-8, 5/3/12).
RWDSU said at the time that scheduling flexibility in the Bloomingdale's contract went further than any other union contract with a large retail company. Under the contract, senior employees have first choice of their preferred hours, and all workers are able to choose one weekend off a month and the late nights they want to work.
A 2011 contract settlement covering some 4,000 workers at Macy's in New York City also improved employees' control over their scheduling, the union said (121 DLR A-13, 6/23/11).
Allen Mayne, RWDSU's director of collective bargaining, told Bloomberg BNA May 9: “The main problem with the Macy's system is it did not recognize an employee's seniority. It lumps all employees together in the same pool and hours are divided up depending on your availability.”
This has a detrimental impact on long-term employees, especially in retail, Mayne said. “In a union environment, where benefits are even better, many employees have many years of seniority,” he said.
RWDSU was able to negotiate in the contract a work rule that allows employees with seniority to have priority access to the scheduling system, Mayne said.
“But there's not enough oversight,” he said. “This is done kind of on the honor system, but people can get in there and input out of seniority order.”
Luce at CUNY said there's a “disconnect” between how sophisticated and helpful to employers the scheduling software has become in the past 15 years and how rudimentary it remains for most retail employees.
“Employees are still submitting their scheduling requests on paper or going into the store to look at their schedules,” she said. “Clearly, the software could allow for employees to be at home and swap shifts. But they are not given access to those systems.”
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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.
Read the full article here.
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.
Read the full article here.
Five takeaways from Colorado's campaign finance reports
Five takeaways from Colorado's campaign finance reports
KUSA - Candidates and campaigns had to file their latest round of finance reports to the Secretary of State’s office...
KUSA - Candidates and campaigns had to file their latest round of finance reports to the Secretary of State’s office Monday.
Here’s what we learned from reading those reports.
1) Tobacco companies have deep pockets.
The No Blank Checks in the Constitution committee has raised about $5 million to keep the tobacco tax in Amendment 72 from passing.
That’s more money than any other campaign has raised so far this cycle, and it all comes from one source: Altria Client Services.
The company is a subsidiary of Altria (formerly Phillip Morris) -- one of the world’s largest tobacco companies.
2) ColoradoCareYES is struggling.
The group pushing universal health care through Amendment 69 raised just $10,000 during the last filing period.
That brings their total to about $320,000. In contrast, Coloradans for Coloradans, has raised nearly $4 million this cycle.
In addition to its fundraising woes, the campaign has also suffered from some surprising opposition. Democratic Gov. John Hickenlooper and Sen. Michael Bennet both oppose the amendment. And so does the liberal group Progress Now.
3) Most of the minimum wage money is coming from out of state.
The group Colorado Families for a Fair Wage wants you to vote to raise the state’s minimum wage to $12 an hour.
But the majority of the $2.3 million it's raised comes from groups in New York and California.
The campaigns biggest donors are Civic Participation Action Fund, The Fairness Project and The Center for Popular Democracy Action Fund.
The campaign against raising the minimum wage is called Keep Colorado Working.
Most of its money comes from industry groups like the Hospitality Issue PAC, which had a Denver address.
That might make you think it’s local money fighting the minimum wage campaign, but the PAC’s funded by national companies like McDonald’s and the National Restaurant Association.
4) The physician assisted suicide campaign is raising and spending some serious cash
Yes on Colorado End of Life Options has raised about $4.8 million to pass Proposition 106, which would let terminally ill patients purchase medications to end their lives.
The campaign’s biggest expenditure is $2.9 million to Blue West Media for advertising. That means we’re likely to see a lot of ads about the proposition between now and Nov. 8.
5) Democrats are outraising Republicans in three key Colorado Senate races.
The winners of Colorado Senate districts 19, 25 and 26 will determine whether Republicans retain control of the chamber.
If Republicans lose all three races, the Democrats will likely gain control of the entire legislature.
All the Democratic candidates are ahead of their opponents when it comes to dollars raised so far.
The biggest gap is in Senate District 19. Incumbent Republican Sen. Laura Woods is $70,000 behind her challenger, Rachel Zenzinger.
We will have to wait and see whether more money translates into more votes
By 2016 KUSA
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Yellen Says Improving Economy Still Faces Challenges
The Washington Post - August 22, 2014, by Ylan Q. Mui - Federal Reserve Chair Janet L. Yellen on Friday expressed...
The Washington Post - August 22, 2014, by Ylan Q. Mui - Federal Reserve Chair Janet L. Yellen on Friday expressed growing confidence that America’s market is improving but uncertainty over how much further it has to go.
Yellen began her remarks before a select group of elite economists and central bankers here by enumerating the unequivocal progress made since the Great Recession ended: Job growth has averaged 230,000 a month this year, and the unemployment rate has fallen to 6.2 percent after peaking in the double digits during the depths of the crisis.
But she quickly transitioned to the challenges in determining how close the labor market is to being fully healed — and how much the nation’s central bank should do to speed its convalescence. Although Yellen has consistently emphasized that the recovery is incomplete, her speech Friday focused on the difficulty of making a current diagnosis.
“Our understanding of labor market developments and their potential implications for inflation will remain far from perfect,” Yellen said at the annual conference sponsored by the Federal Reserve Bank of Kansas City. “As a consequence, monetary policy must be conducted in a pragmatic manner.”
The Fed slashed its target for short-term interest rates to zero and pumped trillions of dollars into the economy in the aftermath of the recession. More than five years later, it is finally scaling back that support. The Fed is slated to end its bond-buying program in October and is debating when to raise interest rates.
That decision carries enormous consequences: Move too soon, and the Fed risks undermining the economic progress made so far. Move too late, and it could risk stoking inflation in the future and sowing the seeds of the next financial crisis.
Investors generally expect the Fed to raise rates in the middle of next year, but several central bank officials gathered here cautioned that the moment could come earlier if the recovery improves more rapidly than expected. Yellen gave no clear timeline Friday but called for a “more nuanced” reading of the labor market as the economy returns to normal.
For example, the size of the nation’s workforce unexpectedly declined after the recession, the result of both demographic factors and unemployed workers who gave up hope of finding a job. Yellen reiterated Friday that a stronger economy could help stem that drop and suggested it may already be working. She also said that the run-up in involuntary part-time work and the low level of people choosing to quit their jobs could be reversed as the labor market improves.
But Yellen seemed to shift her stance on the country’s stagnant wage growth. Previously, she has cited it as a sign that the labor market remains weak. But on Friday she called on research that suggests wage growth has been subdued because employers were unable to cut salaries deeply enough during the recession, a phenomenon dubbed “pent-up wage deflation.” She also suggested that globalization and the difficulty that the long-term unemployed face in finding jobs could also be depressing wage growth.
The uncertainty facing the Fed means it will be carefully evaluating economic data over the coming months, Yellen said. And she said the central bank will remain nimble in its response.
“There is no simple recipe for appropriate policy in this context, and the [Fed] is particularly attentive to the need to clearly describe the policy framework we are using to meet these challenges,” she said.
Central bankers were not the only ones gathered in the Grand Tetons this year. Several workers and activists also traveled to Jackson Hole and called on the central bank to be cautious in removing its support for the economy, the first protest at the conference in recent memory.
The grass-roots group, organized by the Center for Popular Democracy, also issued an open letter to the Fed earlier in the week signed by more than 60 activist organizations. Kansas City Fed President Esther L. George — one of the most vocal proponents of raising interest rates soon — met with the protesters in Jackson Hole on Thursday for about two hours to hear their stories. Ady Barkan, senior attorney at the Center for Popular Democracy, said the groups plan to request meetings with other Fed officials as well.
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Car wash activists release report on John Lage
Amsterdam News - June 20, 2013 - According to a recently released report by car wash workers and their advocates, the...
Amsterdam News - June 20, 2013 - According to a recently released report by car wash workers and their advocates, the owner of several car washes with labor law violations is still paid by the city to clean city-owned cars.
Created and distributed by Make the Road New York, Center for Popular Democracy, New York Communities for Change and the Retail, Wholesale and Department Store Union, the report includes public documents that they believe show that city taxpayers have “spent hundreds of thousands of dollars supporting” John Lage and his associate Fernando Magalhaes.
According to the report, between 2007 and 2013, Lage Car Wash Inc. had contracts with the New York City Police Department and the Department of Housing Preservation and Development (HPD) worth over $300,000 combined. Also, the city paid Lage Car Wash at least $135,924 for the past three years for car wash services and almost $38,000 to other entities that are controlled by Lage or Magalhaes. Last year, New York State Attorney General Eric Schneiderman launched an investigation in Lage’s business practices.
Currently, car wash employees of Lage’s report that they work over 50 hours a week for an hourly wage of $6 without tips or about $7.30 including tips and including overtime. Back in 2005, the U.S. Labor Department sued Lage on charges he and 15 of his companies “willfully and repeatedly” violated wage laws. The suit ended with Lage paying $4.7 million in wages and fines.
None of this was of much surprise to Retail, Wholesale and Department Store Union President Stuart Appelbaum.
“This report is proof that Lage Car Wash Inc. and its treatment of workers is not fair to the workers, nor do these conditions uplift and sustain our communities,” said Appelbaum. “New York City should quickly take action and truly reconsider doing business with a company who operates in this manner.”
Last week, car wash workers and supporters attended the Car Wash Workers General Assembly, where they discussed their experiences working for Lage-owned companies.
“We learned from the strike at Sunny Day [in the Bronx] and the struggle at Soho [in Manhattan] that we can defend our rights and win, and we are no longer going to accept mistreatment and poverty wages,” said Hector Gómez, a car wash worker who worked at the recently closed Lage Car Wash in Soho and currently works at Sutphin Car Wash. “Just think how much more we can win when all the car washes in New York City are organized and united.”
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The Minimum Wage Needs An Upgrade
The Minimum Wage Needs An Upgrade
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of...
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of a fair minimum wage for an honest day’s work.
That promise, however, has eroded badly over time. In recent decades, the federal benchmark has grown increasingly obsolete, guaranteeing a bare minimum that is nowhere near enough to keep up with the growing costs of rent, food, and other essentials.
As calls for higher wages grow louder nationwide, it is imperative that federal officials take action to raise the federal minimum wage and renew the promise to American workers made nearly a century ago.
If the federal rate had merely kept up with inflation since its peak in the late 1960s, it would be nearly $11, one-and-a-half times today’s rate of $7.25. That rate has stayed stagnant since Congress last raised it in 2009. It is a remarkable number of years to go without an increase in wages, and workers have suffered for it.
In the absence of Congressional movement, states and cities have increasingly moved to give workers the raises they need. Yet entrenched forces at the federal level continue to stonewall, putting forth arguments that grow increasingly irrelevant by the day.
Many, for example, raise the specter of job losses. Yet cities that have raised their minimum wage in the past two years, from Los Angeles to Seattle to Chicago, simply have not seen the kinds of cataclysm that many warned about.
In fact, in Seattle, dozens of new restaurants have opened since higher wages kicked in – including many run by one of the fiercest critics of the increase. By the end of 2015, new permits for restaurants, coffee shops, and other food service establishments were on track to keep pace with or even surpass those issued in years past.
Another myth: higher wages would lead to higher prices - a bigger bill for a Big Mac, a pricier trip to Target. Yet here too, the apocalyptic predictions that precede wage increases fail to come true. In Seattle, the costs of groceries, gas, and retail have stayed stable over the past year - even though businesses warned they would need to hike prices if wages were to rise.
In recent weeks, some fast-food chains have made headlines by declaring they would replace employees with automated kiosks. Looking at the bigger picture, though, the overall risks of automation are low. Research just last year found that, while minimum wage increases can reduce some routinized jobs like cashiers, they also swell the number of more complex jobs like food preparation, resulting in an overall zero-sum change.
The fact is, raising the minimum wage gives local economies a boost by putting more money in the pockets of consumers. Higher wages also let businesses hold on to workers and improve customer satisfaction, all of which improve employers’ bottom line.
That’s why the majority of businesses actually support a higher minimum wage, despite the noise coming from groups like the Chamber of Commerce and the National Restaurant Association. A leaked memo earlier this year showed that 80 percent of business executives around the country support higher wages and paid sick days - and that they are coached to oppose those policies in public.
While powerful interests keep trying to muddle the debate, it’s clear that even a growing economy is simply not reaching millions of hardworking Americans. And it’s not just fast-food workers. A variety of workers receive less than $15: teachers, paramedics, home health-care workers, and many others. A recent study showed that even many manufacturing jobs – the foundation of the middle-class – pay less than $15, forcing the government to cover the gap with public assistance programs like food stamps and Medicaid.
As minimum wages affect more and more workers, it is no wonder that more Americans are starting to get on board. This year, dozens of cities and states – including some that lean deeply Republican – are considering increases. Colorado, Maine, Arizona and Washington State are all running ballot measures that would raise wages for close to two million workers in those states alone.
Rather than focusing on a fantasy Armageddon that never comes, lawmakers in Congress would do well to embrace the need for better pay. In the meantime, states and cities will continue the fight to fulfill the pledge that the FLSA made so many years ago.
By JoEllen Chernow
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