Businesses Support Raising The Minimum Wage. Why Doesn’t The Business Lobby?
Businesses Support Raising The Minimum Wage. Why Doesn’t The Business Lobby?
Raising the minimum wage. More paid sick leave and family leave. More stable scheduling for workers. When a major...
Raising the minimum wage. More paid sick leave and family leave. More stable scheduling for workers. When a major Republican-friendly polling shop surveyed CEOs across the country about these typically left-leaning policies, one thing was made clear: they overwhelmingly support them.
So when it came to presenting the results to the Council of State Chambers of Commerce, which commissioned the research, the pollsters had a challenge on their hands — how to reconcile the widespread opposition to these policies by many business lobby groups with their popularity among the people actually running businesses.
In a recorded webinar, David Merritt, the managing director of polling firm LuntzGlobal, described the “empathy” CEOs feel for workers along with their support for labor-friendly policies. “If you ask about them in isolation, of course we want to take care of people who are caring for a loved one. Of course we want to give folks more benefits or more leave or more income.”
In the presentation, obtained by liberal advocacy group the Center for Media and Democracy, Merritt told the business lobbyists that executives expressed widespread support for a number of policies that are vehemently opposed by conservative politicians.
Based on their survey of 1,000 executives, LuntzGlobal found 80% supported raising their state minimum wage, 82% supported increasing paid parental leave requirements and 73% supported increasing paid sick leave. The Washington Post first reported details of the presentation.
“If you’re fighting against a minimum wage increase, you’re fighting an uphill battle,” Merritt said in the presentation. “Because most Americans, even most Republicans, support raising a minimum wage.”
He went on to coach participants on how to oppose those policies anyhow.
“A lot of you guys have minimum wage battles at the state level. If you are fighting those fights, the best way to fight it is not to talk about the minimum wage,” he said. “If you can, turn it into a federal issue and talk about the Earned Income Tax Credit.”
Joe Crosby, Director of the Council of State Chambers, which commissioned the research, said in a statement that the survey was intended “to benchmark trends on current political issues” and “it primarily covered mid-sized and larger companies, not the smaller businesses that are most affected by wage and leave mandates.”
LuntzGlobal, founded by prominent Republican pollster and consultant Frank Luntz, was unable to comment, per the terms of its contract wit the Council of State Chambers, Crosby said.
“We have known for years”
Advocates for these worker-friendly policies said the findings are proof their cause has many allies in the business community — even if those allies aren’t often the most outspoken voices representing business interests in Washington and state houses.
“We have known for years what this research confirms: that an overwhelming share of business leaders support paid sick days, paid leave and other family friendly policies,” said Debra L. Ness, president of the National Partnership for Women & Families, a group that advocates for paid leave.
At one point in the call, Merritt held up language from the group Ness belongs to (below) as polling higher among executives than any other.
“I wouldn’t have changed anything about this statement,” Merritt said in the presentation. “This was the clear winner — from the National Partnership for Women and Families… Perfect, perfect language.”
Business lobby groups like the various state-level chambers of commerce are “not currently representing the views of their members — and doing that at the expense of single moms and hard-working parents,” said Elianne Farhat, who runs the Fair Workweek Initiative, a campaign of the Center For Popular Democracy, a liberal advocacy group. “In every place fair workweek laws are moving, the chambers of commerce have been the loudest voices of opposition.”
But Crosby, the Director of the Council of State Chambers, said the real question at issue is whether labor regulations should be forced onto all businesses by law, not whether businesses support the goal of better pay and working conditions. “Of course business owners support raising wages and benefits for their employees; those are goals they work for every day,” he wrote in an email to BuzzFeed News. “But one-size-fits-all government mandates simply don’t work.”
A spokesperson for the National Restaurant Association, the industry’s largest trade group and one of the loudest voices opposing minimum wake hikes, said its members are more sensitive to labor costs than those in other industries. “The Council of State Chambers represents a diverse range of businesses, including tech and manufacturing companies, that could adapt to increased labor costs more easily” than restaurant and fast food owners, said NRA spokesperson Christin Fernandez.
The U.S. Chamber of Commerce, the federal body representing the country’s business community, echoed concerns that pro-labor policies would negatively affect employers.
“The U.S. Chamber, based on input from our members, continues to believe that imposing higher labor costs on employers, especially small businesses, will force them to cut back elsewhere, and will ultimately price low and un-skilled workers out of entry level job opportunities,” said Randy Johnson, senior vice president of Labor, Immigration, and Employee Benefits for the Chamber, in a statement.
Asked about the chamber’s position on paid family and sick leave, as well as predictive scheduling, all of which polled well in the survey, spokeswoman Blair Holmes wrote that the Chamber is “careful to be responsive and in synch” with the business community it represents.
“The only point we will make is to say we have not lobbied on these issues in any of the states,” she said, adding that the federal group “is not in a position to comment on the positions these state chambers may have taken” with respect to raising the minimum wage or paid leave and “will not comment on state or local versions of predictive scheduling legislation.”
On its website, the U.S. Chamber of Commerce lists among its 2016 priorities: “Oppose efforts to increase the minimum wage and to index the minimum wage to inflation,” and “Oppose attempts to make FMLA [Family and Medical Leave Act] leave paid or to mandate paid sick leave.”
By Cora Lewis
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Is There Such a Thing as Healing after Ferguson?
Fusion - August 27, 2014, by Alicia Menendez - Earlier this week, the family of Michael Brown held a funeral for their...
Fusion - August 27, 2014, by Alicia Menendez - Earlier this week, the family of Michael Brown held a funeral for their son. The funeral was attended by the families of Emmet Till, Trayvon Martin, Sean Bell, Oscar Grant and Jordan Davis. Their stories are all similar, so why does this keep happening?
Fusion's Alicia Menendez spoke with CPD's Policy Advocate Josie Duffy about the way the media portrays black men. As peace returns to Ferguson, the question is: How does the community begin to heal?
Man with Lou Gehrig’s disease makes emotional plea to Jeff Flake to vote down Trump’s tax plan
Man with Lou Gehrig’s disease makes emotional plea to Jeff Flake to vote down Trump’s tax plan
One of Sen. Jeff Flake (R-AZ)’s last major votes before retirement could be a death sentence for tens of thousands of...
One of Sen. Jeff Flake (R-AZ)’s last major votes before retirement could be a death sentence for tens of thousands of Americans. One of them is Ady Barkan, a 33-year-old California father living with amyotrophic lateral sclerosis (ALS), who, during a Thursday night flight from Washington D.C. to Phoenix, Arizona, asked Flake to cast a vote to save his life.
“I was healthy a year ago. I was running on the beach,” Barkan told Flake on the flight, according to video footage of the exchange. “I’m 33, I have an 18-month-old son, and out of nowhere I was diagnosed with ALS, which has a life expectancy of three to four years, no treatment, no cure.”
Read the full article here.
By A Thousand Cuts: The Complex Face of Wage Theft in New York
In recent years—at least as far back as the passage of the New York Wage Theft Prevention Act of 2010, through 2015,...
In recent years—at least as far back as the passage of the New York Wage Theft Prevention Act of 2010, through 2015, when a series of New York Times articles explored the shocking extent of wage theft and other workplace abuses in the nail salon industry—mainstream elected officials and the press alike have turned meaningful attention to the problem of wage theft in New York State and nationwide. The question is what remains to be done. This brief study does not attempt to answer that question fully, but begins the inquiry by delving into the shape that wage theft takes in New York City and statewide.
Download the report here
Case studies in this report focus on particular employers that low-wage worker advocates have identified as illustrating broader problems in sectors where wage theft is prevalent.
Though this study is merely an entry point to a much broader and deeper analysis, our results point to some common-sense first steps in improving wage theft enforcement in New York City, New York State, and beyond.
Recommendations include the following:
City, state and federal government should invest in rigorous social science and economic research to evaluate what types of education, enforcement, penalties, and damages are most successful in encouraging workers and others to blow the whistle on wage theft, compensating directly impacted workers, and deterring and reducing wage theft. Our legislative and regulatory approach to penalizing wage theft and retaliation should be reevaluated to take into account the impact that wage theft and retaliation have not only on the directly impacted workers but also on competing employers, entire geographic areas, sectors, and the economy. Outreach, education, and enforcement efforts need to be tailored to address the specific situations of certain sectors, ethnic groups, and communities. Government should partner with, and resource, community-based partners who have established trust in hard-to-reach communities of workers and employers. Government should partner with community and labor organizations with expertise in specific sectors and types of wage theft, to assist in bringing forward adequate and accurate testimony and evidence to evaluate compliance in that sector or type of employer. Government inspectors and investigators should receive regular training in sector-specific practices in order to rigorously evaluate testimony and facts presented by employees and employers for reasonability. Government enforcement needs to explore substantial regulatory, legislative and strategic changes to enable collection of unpaid wages, damages and penalties. Pilot projects should aggressively test the use of bonds in exploitative industries, the ability of courts and the Department of Labor (DOL) to freeze assets pre-judgment, and wage liens. Public procurement rules should prohibit convicted wage thieves from bidding on public contracts or dispositions at the federal, state and local level, or from receiving public subsidy, with permanent removal from bidding or eligibility lists in cases of egregious wage theft.Download the report here
Progressive Candidates Are Pulling the Democratic Party Left, Whether the Establishment Likes It or Not
Progressive Candidates Are Pulling the Democratic Party Left, Whether the Establishment Likes It or Not
One of the candidates taking on the establishment is Kerri Harris, who is running to unseat Sen. Tom Carper, a Democrat...
One of the candidates taking on the establishment is Kerri Harris, who is running to unseat Sen. Tom Carper, a Democrat from Delaware. Harris, who is a community organizer with the Center for Popular Democracy and an Air Force veteran, has been hammering Senator Carper on his decision to partner with Republicans to dismantle Dodd-Frank -- the law passed in the wake of the financial and housing crisis.
Activista colombiana de Queens confrontó a Senador Flake en ascensor sobre caso Kavanaugh
Activista colombiana de Queens confrontó a Senador Flake en ascensor sobre caso Kavanaugh
Ana María Archila, un activista colombiana residente en Queens que ha liderado muchas protestas en Nueva York, ganó...
Ana María Archila, un activista colombiana residente en Queens que ha liderado muchas protestas en Nueva York, ganó atención nacional ayer al confrontar al senador Jeff Flake en un elevador del Capitolio.
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La incertidumbre de los puertorriqueños de Nueva York que no han podido comunicarse con sus familiares en la isla
La incertidumbre de los puertorriqueños de Nueva York que no han podido comunicarse con sus familiares en la isla
Por otro lado, el Center for Popular Democracy lanzó un fondo de emergencia para asistir a organizaciones que trabajan...
Por otro lado, el Center for Popular Democracy lanzó un fondo de emergencia para asistir a organizaciones que trabajan con comunidades de bajos ingresos, que son más vulnerables a los daños de María.
Lea el artículo completo aquí.
Interest rate clock ticks for Janet Yellen and the Fed – but is China a wild card?
In just a little over three weeks’ time, on 17 September, the US central bankers are going to have to sit down around a...
In just a little over three weeks’ time, on 17 September, the US central bankers are going to have to sit down around a table and decide whether to raise interest ratesfor the first time since before the financial crisis of 2008 unfolded. And just as the markets were preparing for the news, China has thrown a wrench in the works.
Just to put this in its proper context, the last time the Fed raised interest rates, it was June 2006. Microsoft was releasing a version of Windows Vista; Google officially became a word in the Oxford English Dictionary. The Da Vinci Code ruled at the movie box office. The iPhone hadn’t even been introduced yet; we didn’t yet live in a world of apps and selfies. Hey, you could even collect interest on your bank savings account!
If it all feels blurred and slightly unreal (especially the idea of earning interest from a bank account) in your mind, that’s OK. Time has a habit of doing that to us. Then, too, what has happened since then has rendered the events of 2006 pretty forgettable: the financial crisis, the recession, and the struggle to get back to where we were, all neatly summarized in the glib phrase that some use when describing the first part of the 21st century: the “lost decade”.
But the Fed really, really, really wants to get back to normal. And that would be the old normal – when its team of policymakers meets once every six or seven weeks to monitor the economy and determine whether it’s overheating or cooling down too rapidly. Then they whip out the key tool in their monetary policy arsenal – interest rates – and adjust it accordingly. If the economic environment is too robust and the threat of inflation looms large on the horizon, well then, higher interest rates should make money more costly, dampen demand for it and calm everyone down a bit. On the other extreme, if animal spirits are low and unemployment is high, low interest rates should generate some economic activity and get everything moving again.
For now, the Fed’s leaders have said repeatedly, they are waiting until they are reasonably sure that inflation is heading toward their annual target of 2%. For the last three years, it hasn’t approached that level, and there’s tremendous uncertainty about acting too soon – and causing the economy to stall altogether – or delaying and perhaps allowing bubbles to take shape and jeopardize the credibility of the Fed itself as a policy-making institution.
It doesn’t help that the post-crisis recession seemed to throw the ability of monetary policy as a tool to guide the economy smoothly through storms into question. It certainly wasn’t enough to get the economy going once the financial system had been rescued from bankers intent on dashing off a precipice like lemmings, carrying the whole structure with them.
And now policymakers must continue to grapple with economic news that can be used in whatever way a pundit wants, to advocate for pretty much whatever point of view one wishes. The housing market is recovering at its strongest pace in nearly a decade! But it’s still functioning well below long-term historical averages, when compared to total national GDP levels. It all depends on which data set you prefer to look at. Employment? Well, the good news is that unemployment levels have fallen. On the other hand, there’s absolutely no wage inflation to be found, much less to be contained: most Americans would find the idea to be laughable. Indeed, middle income earners have seen a significant erosion in their buying power. There is inflation, but it’s in the prices of goods and services, not in wages.
Yellen and her fellow policymakers need to wake up and smell the espresso, according to a consortium of progressive policy organizations led by the “Fed Up” campaign, a nonprofit created by the Center for Popular Democracy. They’re putting together an online petition to be delivered to Yellen and other Fed members at their annual Jackson Hole, Wyoming retreat at the end of August. “Working families haven’t made a full economic recovery, and now is not the time to declare victory,” the petition states, noting that higher interest rates would make it more costly for Americans to buy homes or cars, as well as boosting the costs of student loans and credit card or any other form of debt.
All of that is true, but the Fed policymakers aren’t just thinking about working families when they consider boosting interest rates. They’re considering the bigger picture, and specifically what might happen if they don’t act: inflation (in the form of a flood of new, cheap loans from banks) and, far more dangerously, asset bubbles.
The latter is a real risk: the Fed already is stepping up its scrutiny of one particularly risky and active party of the market fueled by ultra-cheap financing, the leveraged loan market. According to at least one source, since the Fed tried to crack down when banks were shrugging off the regulator’s guidelines, the market has only grown still larger, to nearly $875bn. And it is full of the kind of excessive risk taking that led to the 2008 crisis.
In a perfect world, Yellen and the Fed would rather not preside over a repeat of that event, and if the price to pay is higher interest rates, well, that’s a perfectly acceptable tradeoff, thank you very much. Indeed, some economists believe that they already are delinquent; that they should have begun “normalizing” interest rate policy a long time ago. Already, a Bank of America securities report has scoffed that keeping rates unchanged for so long has left the Fed suffering from “central bank policy impotence” – and no little blue pill in sight.
So, will the Fed act?
The minutes of the Fed’s last meeting, held in late July, which were released to the public last week, display a lot more dithering and a considerable amount of wariness. Inflation data just isn’t there; Federal Open Market Committee members say they want more evidence that economic growth is “sufficiently strong”. How Yellen will forge a consensus out of this group is baffling.
And then there is the wild card: China. Is it even possible for the US to consider raising interest rates with the yuan depreciating, stock markets plunging and the contagion spreading to other markets in Southeast Asia? The precise extent to which these events might affect the United States is hard to gauge, but in a globalized economy, of which China and its 1.4 billion citizens play a growing and significant role, the Fed can’t pretend that they are blips on the horizon.
For my part, I’m left with only one certainty. Charged with sorting through all these issues, weighing them, and making the right policy choices for the country, Yellen is earning every penny of her annual salary of $201,700.
Source: The Guardian
The Fed should rethink how its conducts monetary policy
The Fed should rethink how its conducts monetary policy
There is a growing sentiment that the Federal Reserve needs to change the principles by which it manages our economy. ...
There is a growing sentiment that the Federal Reserve needs to change the principles by which it manages our economy. Federal Reserve officials are saying it. Community organizations, labor unions, and think tanksare saying it. And on Friday, 20 of the country's most prominent economists released a joint letter saying it.
Read the full article here.
Regional Feds' head-hunting under scrutiny over insider bias, delays
Efforts to fill top positions at some U.S. Federal Reserve regional branches are casting a spotlight on a decades-old...
Efforts to fill top positions at some U.S. Federal Reserve regional branches are casting a spotlight on a decades-old process that critics say is opaque, favors insiders, and is ripe for reform.
Patrick Harker took the reins as president of the Philadelphia Fed this week, in an appointment that attracted scrutiny because he served on the committee of directors that interviewed other prospective candidates for the job he ultimately took.
The Dallas Fed has been without a permanent president for more than three months as that search process stretches well into its eighth month. And the Fed's Minneapolis branch abruptly announced the departure of its leader, Narayana Kocherlakota, more than a year before he was due to go, with no replacement named to date.
The delays and reliance on Fed employees in picking regional Fed presidents can only embolden Republican Senator Richard Shelby to push harder for a makeover of the central bank's structure, which has changed little in its 101 years.
A bill passed in May by the Senate Banking Committee that Shelby chairs would strip the New York Fed's board of its power to appoint its presidents. And it could go further, given the bill would form a committee to consider a wholesale overhaul of the Fed's structure of 12 districts, which has not changed through the decades of shifting U.S. populations and an evolving economy.
The bill is part of a broader conservative effort to expose the central bank to more oversight, and some analysts saw the Philadelphia Fed's choice as reinforcing the view that the Fed needs to open up more to outsiders.
Nine of 11 current regional presidents came from within the Fed, a proportion that has edged up over time. Twenty years ago, seven of 12 were insiders.
"The process seems to create a diverse set of candidates in which the insider is almost always accepted," said Aaron Klein, director of a financial regulatory reform effort at the Bipartisan Policy Center.
Since it was created in 1913, the central bank's decentralized structure was meant to check the power of Washington, where seven Fed governors with permanent votes on policy are appointed by the White House and approved by the Senate.
The 12 Fed presidents who are picked by their regional boards usually vote on policy every two or three years, and they tend to hold more diverse views.
Former Richmond Fed President Alfred Broaddus told Reuters the regional Fed chiefs have more freedom "to do and say things that may not be politically popular" because they are not politically appointed. "On the other hand, there is the question of legitimacy since they are appointed by local boards who are not elected."
"TONE DEAF"
Two-thirds of regional Fed directors are selected by local bankers, while the rest are appointed by the Fed's Board of Governors in Washington.
Critics question how well those regional boards - mostly made of the heads of corporations and industry groups meant to represent the public - fulfill their mission.
Last year, a non-profit group representing labor unions and community leaders organized by the Center for Popular Democracy, urged the Fed's Philadelphia and Dallas branches to make the selection of their presidents more transparent and to include a member of the public in the effort.
Philadelphia's Fed in particular proved "tone deaf" in its head-hunting effort, said Lou Crandall, chief economist at Wrightson ICAP in Jersey City, New Jersey.
Harker was a Philadelphia Fed director when the board started looking to replace president Charles Plosser, who left on March 1, and he was among the six directors who interviewed more than a dozen short-listed candidates for the job, according to the Philadelphia Fed.
But on Feb. 18, Harker floated his own name, recused himself from the process and a week later his colleagues on the board unanimously appointed him as the new president.
While the selection follows Fed guidelines and was approved by its Board of Governors, it raised questions of transparency and fairness.
"The Philadelphia Fed's search process might have made perfect sense in a corporate environment, but is obviously problematic for an official institution," said Crandall.
The board's chair and vice chair, Swathmore Group founder James Nevels and Michael Angelakis of Comcast Corp, respectively, declined to comment, as did Harker.
Peter Conti-Brown, an academic fellow at Stanford Law School's Rock Center for Corporate Governance, and an expert witness at a Senate Banking Committee hearing this year, proposed to let the Fed Board appoint and fire regional Fed presidents or at least have a say in the selection process.
In the past, reform proposals for the 12 regional Fed banks have focused on decreasing or increasing their number and their governance.
Changes to the way the regional Fed bosses are chosen could strengthen the influence of lawmakers at the expense of regional interests.
For now, delays in appointments of new chiefs force regional banks to send relatively unknown deputies to debate monetary policy at meetings in Washington, as Dallas and Philadelphia did last month when the Fed considered raising interest rates for the first time in nearly a decade.
The Minneapolis Fed still has time to find a new president before Kocherlakota steps down at year end.
"For now the Fed criticism is just noise, mostly from Republicans," said Greg Valliere, chief political strategist at Potomac Research Group. "But once the Fed begins to raise interest rates ... then the left will weigh in as well."
(Additional reporting Ann Saphir in San Francisco; Editing by Tomasz Janowski)
Source: Reuters
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