More states question controversial on-call scheduling
Dive Brief: Attorneys general from eight states and the District of Columbia sent letters to 15 retailers asking them...
Dive Brief:
Attorneys general from eight states and the District of Columbia sent letters to 15 retailers asking them to explain their policies regarding “on-call” scheduling, seeking information and documents related to their use of on-call shifts.
Letters were sent to American Eagle, Aeropostale, Payless, Disney, Coach, PacSun, Forever 21, Vans, Justice Just for Girls, BCBG Maxazria, Tilly’s, Inc., David’s Tea, Zumiez, Uniqlo, and Carter’s, with signatures from any attorney general involved in the state where the retailer has operations.
The coordinated move follows a similar one last year from New York Attorney General Eric Schneiderman’s office, an effort that prompted six retail brands, including Urban Outfitters, Gap Inc., L. Brands, J. Crew, Pier 1, and Abercrombie & Fitch to end on-call scheduling.
Dive Insight:
Algorithms in software have helped retailers lower costs through efficient staffing, cutting workers loose in slow times, having them wait "on call" in case things get busy, and leaving little room for flexibility. The practice makes it difficult for retail employees to juggle the realities of their those jobs while also trying to manage their households and earn enough money to get by.
“On-call shifts are unfair to workers who must keep the day free, arrange for child care, and give up the chance to get another job or attend a class–often all for nothing,” Schneiderman said in a statement. “On-call shifts are not a business necessity, as we see from the many retailers that no longer use this unjust method of scheduling work hours.”
Schneiderman’s office has been keen on cracking down on the practice for a while now, which in most cases violates his state’s laws, and there’s been rising sentiment among lawmakers in several states—and possibly even in Congress—to pull back on the practice.
But even with this pressure, and despite its dubious legality in some areas, on-call scheduling is still fairly widespread, according to the Fair WorkWeek Initiative.
“Over the past year, workers have been speaking out about the struggles caused by increasingly unpredictable hours,” Fair Workweek Initiative director Carrie Gleason said in an email to Retail Dive. “Workers should not have to choose between living with dignity and getting enough hours to put food on the table. It is heartening to see more and more policymakers and regulators take action to address a crisis affecting millions of Americans.”
Retailers should be prepared to see more such concerns, warnings, and even legislation as just-in time scheduling gets more scrutiny, Gail Gottehrer, a labor & employment litigator at Axinn Veltrop & Harkrider in New York who works on behalf of employers, told Retail Dive last year. The practice was a major concern when the San Francisco Board of Supervisors last year unanimously passed its Worker Bill of Rights law.
“This can be especially difficult for multi-state employers,” Gottehrer said. “If you’re in a lot of jurisdictions it can be complicated to get things right.”
Not all the retailers that received letters use the practice. Forever 21 emailed Retail Dive to say, "Contrary to published reports, Forever 21 does not permit on-call scheduling nor do we have a company policy around doing so." On Friday, American Eagle Outfitters also released a press release reiterating that it has banned the practice nationwide. "We decided in November 2015 to cease the use of “on-call shifts” and advised our stores," the company states. "We are taking steps to reinforce and assure adherence to this policy across our store fleet."
Spokespeople for Coach and Payless told Reuters that they don’t use on-call scheduling, and a Zumiez spokesperson told Reuters that it’s cooperating, and a spokesperson for Carter's said that company is reviewing the letter. Other retailers receiving the new letters did not immediately respond to requests for comment, according to Reuters.
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Reuters: US regulators probe retailers' on-call scheduling
By Daphne Howland
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Fed Hawks Ignore Reality of Stagnant Wages, No Jobs
WSJ 12.01.2014 “A Central Bank...
WSJ 12.01.2014
“A Central Bank for the Beltway” (Review & Outlook, Nov. 19) criticizes the recent work of the “Fed Up” coalition, which is advocating for transparent processes in the appointment of Federal Reserve presidents and monetary policies that promote a full employment economy.
The editorial acknowledges that “the Fed should be held politically accountable in a democracy,” and I agree. In Dallas and Philadelphia, where the current Fed presidents will be replaced this year, the public does not know how the private search firm chooses candidates, who the candidates are, by what criteria they will be judged or even when the vote will be held.
Fed governance is dominated by financial and corporate interests: Of the 108 current directors on the 12 regional Fed boards, 36 are bankers, 62 are corporate executives and just 10 are leaders of community or labor organizations. The “independ-ent policy judgment” that comes from such a structure will be advice that benefits banks and corporations, not the general public.
Our coalition believes that the voices of workers, community leaders and faith leaders will bring important perspectives to key policy debates. The Fed hawks who argue that the economy has recovered ignore the reality of stagnant wages, plummeting workforce participation rates and the rapid growth of the involuntary part-time workforce.
While near-zero interest rates have not yet been sufficient to spur a true recovery, many prominent economists—from Adam Posen to Joseph Stiglitz —have explained that raising interest rates would be catastrophic. The public, particularly the unemployed, underemployed and underpaid, recognize that the Fed should provide robust support to the economy until it reaches full speed and is creating millions of good new jobs, and wages are rising for a broad sector of working Americans who have seen their income fall or stagnate for far too long.
Shawn SebastianCenter for Popular Democracy
Source: Wall Street Journal
City Bar Statement Praising New York City Council’s Efforts to Fund Immigration Public Defender System, and Urging Nationwide Action
New York City Bar - July 19, 2013 - The New York City Bar Association applauds the New York City Council for allocating...
New York City Bar - July 19, 2013 - The New York City Bar Association applauds the New York City Council for allocating $500,000 for the “nation’s first public defender system for immigrants facing deportation,” as the New York Times described it. The Council’s effort is a model for what Congress should enact nationwide, to support justice, economic fairness and efficient administration of the courts.
The City Bar salutes the City Council’s commitment to fund lawyers for New York’s low-income immigrants through the New York Immigrant Family Unity Project. Research by a study group convened by Second Circuit Judge Robert Katzmann has demonstrated the inability of immigrant detainees to represent themselves, with only three percent of them achieving success in their cases without counsel. Lenni Benson, the chair of the City Bar’s Immigration and Nationality Committee, and Lynn Kelly, the Executive Director of the City Bar Justice Center, are participants in Judge Katzmann’s efforts.
Congress should build upon New York’s model and provide appointed counsel to indigent non-citizens in immigration proceedings nationwide. In its position letter and in continued meetings with Congressional members and staff, the City Bar, through its Immigration & Nationality Committee, has emphasized that a right to counsel advances fundamental American values of fairness and due process. As the letter stated, “There is no citizenship test for counsel in America.” The familiar words “You have the right to an attorney. If you cannot afford an attorney, one will be provided for you” do not include “only if you are a citizen.”
City Bar President Carey R. Dunne said, “When you consider that Congress, with bipartisan support, has granted a right to counsel to sex offenders and Al Qaeda suspects in detention hearings, and that 76 percent of Americans support a right to counsel for immigrants facing deportation, it’s hard to see why appointed counsel is still denied to non-citizen residents facing detention and deportation.”
Counsel also provides economic and social benefits that outweigh its costs. Appointing counsel in these cases pays for itself by reducing costly detention, increasing court efficiency, and reducing societal costs due to the splitting up of families and the resulting abandonment of children. “Increasing access to justice by funding legal services for the City’s poorest residents actually benefits the entire City’s economy,” said Dunne. The City Bar’s 2013 Policy Recommendations for New York City’s Next Mayor sets out these benefits in more detail, and the City Bar’s Immigration & Nationality Law Committee is currently preparing a report to more specifically articulate these benefits in the immigration context.
The City Bar’s efforts to expand the right to counsel in immigration proceedings follows its decades of advocacy to provide lawyers to those unable to adequately represent themselves when liberty and basic needs are at stake. In 1959, the City Bar’s groundbreaking report Equal Justice for the Accused advocated appointed counsel for criminal defendants as reflecting society’s interest in “fundamental human rights,” and provided support for the U.S. Supreme Court’s 1963’s Gideon v. Wainwright decision. In 2006, the City Bar co-sponsored the American Bar Association’s resolution supporting a right to appointed counsel in civil proceedings. In 2009, the City Bar’s Immigration & Nationality Committee released a report arguing for a right to appointed counsel for detainees in immigration removal proceedings.
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Should state be allowed to take over chronically failing schools?
Should state be allowed to take over chronically failing schools?
Georgia voters are being asked to approve a new and controversial way to improve public education. The proposal would...
Georgia voters are being asked to approve a new and controversial way to improve public education. The proposal would empower the state to take over chronically failing schools or convert them to charters or even close them.
It’s called Amendment 1 on the Nov. 8 ballot, and it’s called the Opportunity School District in the legislation that authorized it. The Georgia General Assembly passed Senate Bill 133 during this year’s session with the required two-thirds majority in both chambers. The referendum now needs a simple majority from voters to become law.
Then it asks voters this question:
“Shall the Constitution of Georgia be amended to allow the state to intervene in chronically failing public schools in order to improve student performance?”
Gov. Nathan Deal’s OSD proposal, based on similar initiatives in Louisiana and Tennessee, would allow Georgia’s governor to appoint an OSD superintendent, separate from the Georgia Department of Education superintendent, who is elected by voters. The OSD superintendent could take over as many as 20 eligible schools each year and control no more than 100 such schools at any time. The OSD superintendent could waive Georgia Board of Education rules, reorganize or fire staff and change school budgets and curriculum. The state also could convert OSD schools to nonprofit or for-profit charter schools or close them if they don’t have full enrollment.
The state would use the College and Career Ready Performance Index to determine which schools are eligible for takeover. Schools that score below 60 on the 100-point CCRPI for three straight years could be included in the OSD. Those schools would stay in the OSD for no less than five years (or, if they are an OSD charter school, for the length of the initial charter’s term) and no more than 10 years before returning to local control. Opportunity Schools could be removed from the OSD whenever they are graded above an F in the state’s accountability system for three straight years.
Muscogee County had 10 of the 141 schools on the state’s original list of chronically failing schools released last year. Georgetown and Rigdon Road elementary schools, however, improved enough with other schools in the state on the 2015 CCRPI to move off the list. That leaves 127 schools in Georgia and these eight in Muscogee on the current list: Baker Middle School and Davis, Dawson, Forrest Road, Fox, Lonnie Jackson, Martin Luther King Jr. and South Columbus elementary schools.
The case for Yes
OSD proponents cite the number of chronically failing schools as the most obvious reason to try something drastically new. They also note the reduction in the number of chronically failing schools since the threat of state takeover became possible after Senate Bill 133 passed.
Deal says on his proposal’s website, “While Georgia boasts many schools that achieve academic excellence every year, we still have too many schools where students have little hope of attaining the skills they need to succeed in the workforce or in higher education. We have a moral duty to do everything we can to help these children. Failing schools keep the cycle of poverty spinning from one generation to the next. Education provides the only chance for breaking that cycle. When we talk about helping failing schools, we’re talking about rescuing children. I stand firm on the principle that every child can learn, and I stand equally firm in the belief that the status quo isn’t working.”
Alyssa Botts, spokewoman for the pro-Amendment 1 campaign committee Opportunity for All Georgia Students noted, “The graduation rate for students attending failing schools is an abysmal 55.7 percent,” compared to the most recent statewide figure of 78.8 percent in the class of 2015.
“A school that fails to properly educate its students perpetuates cycles of poverty and increases the likelihood of incarceration,” Botts said in an email to the Ledger-Enquirer. “For many students, educational opportunities provide the best chance to break out of these cycles. … Voting ‘yes’ for the Opportunity School District amendment is a vote to ensure that future generations of Georgians will have the best opportunities available. No child in Georgia should be forced by law to attend a failing school.”
The governor-appointed Georgia Board of Education and the Georgia Chamber of Commerce have endorsed the OSD referendum.
Michael O’Sullivan, executive director of the Georgia Campaign for Achievement Now, part of the 50-state CAN nonprofit organization advocating “a high-quality education for all kids, regardless of their address,” has successfully fought a similar political battle, helping to convince voters to approve the 2012 Georgia charter school amendment. And the OSD is the next logical step, he figures.
“What this has done is create a sense of urgency for districts to act,” O’Sullivan said in an interview with the Ledger-Enquirer. “Voters should be asking what’s being done now? What plans are in place to improve our schools? That’s the ultimate goal. How can we ensure that every student in the state has access to quality education? Right now, 68,000 students attend a school that has failed at least three years or more.”
The opposition is based on being “afraid of loss of control,” O’Sullivan said. “… It’s my hope that opponents would be putting as much effort into fixing their schools so they aren’t eligible for the OSD. I can tell you which option will be best for schools.”
O’Sullivan emphasized that state takeover is only one option for intervention in the OSD.
“There is the ability for the state to assist schools that are failing for one year or two years, and then, after three years, there is a multiple intervention model,” he said. “One is a joint governance structure, with the OSD and the local school district working together to turn around the school.”
Addressing concerns that OSD schools would receive less funding, O’Sullivan said, “Whatever amount that would have been dedicated to that school remains in that school.”
Louisiana enacted the Recovery School District in 2003. The RSD comprises 62 autonomous charter schools in Orleans, East Baton Rouge and Caddo parishes with a total enrollment of more than 32,000 students, according to the RSD’s 2015 annual report. The percentage of RSD schools considered to be failing has been reduced from 44 percent in 2011 to 19 percent in 2015, the report says.
According to the RSD’s 2014 annual report, the percentage of students performing at the basic level or above increased 29 percentage points from 2008 to 2014, while the state average increased 9 percentage points.
In New Orleans, 63 percent of the public school students are in the RSD. According to a June 2015 study by Patrick Sims and Vincent Rossmeier of the Cowen Institute for Public Education Initiatives at Tulane University, “the percentage of (New Orleans) students at the basic level or above has increased 15 percentage points over the past six years. That growth has largely come from the RSD, which has improved by 20 percentage points.”
In Tennessee, as of the 2015-16 school, there were 29 schools in the Achievement School District, enacted in 2010 with the goal of moving the state’s bottom 5 percent of school into the top 25 percent of student achievement. The ASD has made progress, according to its July 2015 report.
“Over a three-year period, ASD students have earned double-digit gains in math and science proficiency and have grown faster than their state peers,” the report says.
The ASD reading scores, however, declined along with the state average.
“We know from national research and our own experience that reading growth tends to lag behind other subjects in a school turnaround setting,” Malika Anderson, then the ASD deputy superintendent and now its superintendent, says in the report.
The case for No
Georgia Federation of Teachers president Verdaillia Turner, a retired Atlanta educator, has seen the statistics that indicate state takeovers improved student achievement, but her organization touts evidence that argues otherwise.
The federation says in its campaign literature that the Southern Poverty Law Center filed a lawsuit against the state-created school district in New Orleans on behalf of 4,500 students for denying appropriate services. A July 2015 SPLC fact sheet notes that, while an average of 19.4 percent of students with disabilities graduated high school in Louisiana, only 6.8 percent of them graduated in the Recovery School District.
A February 2016 report titled “State Takeovers of Low-Performing Schools: A Record of Academic Failure, Financial Mismanagement and Student Harm” from the Center for Popular Democracy, a liberal-leaning nonprofit advocacy group, found that state takeovers of schools in Louisiana, Michigan and Tennessee produced:
▪ “Negligible improvement — or even dramatic setbacks — in their educational performance.”
▪ “A breeding ground for fraud and mismanagement at the public’s expense.”
▪ “High turnover and instability” among staff, “creating a disrupted learning environment for children.”
▪ “Harsh disciplinary measures and discriminatory practices” for students of color and those with special needs.
Turner fears too much of the motivation for the OSD proposal is about creating profit opportunities in public schools for private charter school companies.
“The bottom line here is that this is a new business at the public’s expense,” Turner said in an interview with the Ledger-Enquirer. “The only thing public about these schools is our tax dollars.”
The federation notes the OSD may retain 3 percent of state funds for administrative operations, reducing the amount of money available for instruction.
“I love my state, and I respect the office of the governor and all of government,” Turner said. “However, this is still a democracy, and we believe that educators and the public need not be misled by what’s about to happen.”
That includes the OSD superintendent’s authority to “get rid of people at will” at any OSD school, Turner said. “The law says, the last line in Senate Bill 133 says, all laws in conflict with this act are repealed.”
Turner noted the state’s standardized testing system has changed the past five consecutive years. “Therefore, we know it’s not reliable,” she said.
In many chronically failing schools, Turner said, “children end up going to jail. But in many of these same schools, children go to Yale. So we need to have a real conversation about what makes schools work.”
The Atlanta Journal-Constitution has reported that a political group called the Committee to Keep Georgia Schools Local has a TV ad campaign opposing the OSD referendum. The group includes the Georgia Association of Educators, Georgia AFL-CIO, the Professional Association of Georgia Educators, Georgia Stand-Up, the Coalition for the People’s Agenda, Public Education Matters, Southern Education Foundation, Working America, Pro Georgia, Better Georgia, Georgia Federation of Teachers and Concerned Black Clergy of Metro Atlanta, according to the AJC.
The Georgia School Boards Association’s board of directors voted to oppose the amendment. School boards representing the counties of Bibb, Chatham, Cherokee, Clayton, Fayette, Henry, Richmond and Troup have expressed opposition.
The Muscogee County School Board was scheduled to join them last month, but the proposed resolution was deleted from the agenda between the Sept. 12 work session and the Sept. 20 meeting. Neither superintendent David Lewis nor board chairman Rob Varner has responded to the Ledger-Enquirer’s requests for an explanation.
Responding on their behalf, MCSD communications director Valerie Fuller also didn’t explain the sudden change in thinking, who proposed the resolution, who rescinded it and why. Here is her statement in an email to the Ledger-Enquirer:
“The Muscogee County School District is a public school system, which is supported by taxpayer money. All of our stakeholders (taxpayers, students, parents, teachers administrators and staff) have different opinions on this proposal. Although we believe, and the results indicate, that we are making progress with our challenged schools, to take a side could anger supporters, who might say the BOE is opposed to helping ‘failing’ schools.
“We don’t think it would be wise for a publicly elected body to pass a resolution in opposition of this amendment that might result in controversy, causing unnecessary distractions from the work being done on behalf of these schools. Because this could result in a change to Georgia’s Constitution, we do believe it is important for voters to read and be fully informed about the amendment and its implications.”
In a letter Tuesday to school district superintendents and Regional Education Service Agency directors, Georgia Department of Education deputy superintendent for external affairs and policy Garry McGiboney reminded public school officials that the Georgia Office of the Attorney General advised the GaDOE in 2012, “Local school boards do not have the legal authority to expend funds or other resources to advocate or oppose the ratification of a constitutional amendment by the voters.”
Regardless of whether the proposed OSD is good for Georgia, the referendum’s wording doesn’t accurately explain it, some folks insist. The Georgia PTA called it “deceptive.”
“If the governor and state legislators believe the best way to fix struggling schools is to put them under state control and either close them or turn them over to charter schools, then let the language on the ballot reflect this initiative,” Georgia PTA president Lisa-Marie Haygood said in a news release. “As it stands, the preamble, and indeed, the entire amendment question, is intentionally misleading and disguises the true intentions of the OSD legislation.”
To that end, a class-action lawsuit was filed Sept. 27 against the governor, Lt. Gov. Casey Cagle and Georgia Secretary of State Brian Kemp. The three lead plaintiffs, all from metro Atlanta — parent Kimberly Brooks, First Iconium Baptist Church senior pastor Timothy McDonald III and Coweta County teacher Melissa Ladd — allege in the complaint that the wording is “so misleading and deceptive that it violates the due process and voting rights of all Georgia voters.”
Gerry Weber, an Atlanta lawyer representing the three lead plaintiffs, told the Ledger-Enquirer in an interview the Georgia Supreme Court ruled about 10 years ago that a challenge to the wording of ballot measures must be decided after the vote because the lawsuit would be moot if the proposal fails.
The Ledger-Enquirer asked Deal spokeswoman Jen Talaber Ryan for the governor’s response to the allegation about the referendum’s wording. Ryan replied in an email, “The opposition didn’t attend the publicly announced constitutional amendment meeting where the language was discussed and approved. Why don’t you ask them why? And the preamble and question say exactly what the OSD will do — provide a lifeline for children forced by law to attend a failing school. The only thing misleading here is the fact that national, outside special interest groups are spending money instead of local groups. After all, their go to line is about ‘local control.’ Hypocritical, don’t you think?”
Keep Georgia Schools Local campaign manager Louis Elrod told the Ledger-Enquirer in an email from media relations manager Michelle Davis, “It’s unbelievable that pro-school takeover advocates would make this charge. They are grasping at straws because they’re desperate and losing this fight.
“They know full well that many members of our bipartisan coalition of parents, teachers and public school advocates actively petitioned for changes to both the amendment and the ballot question at multiple hearings. The even more deceptive preamble language was drafted at a separate meeting in Deal’s office. Janet Kishbaugh of Public Education Matters Georgia says she and other opponents called and searched online daily to find an announcement of this meeting. It was later revealed that the preamble was written in Deal’s office in a meeting attended only by the three men who drafted the words.
“The pro-takeover campaign’s political maneuvering just confirms what we know about their intentions — this amendment is designed to silence parents and strip away local control.”
Do your homework and vote
The Georgia Partnership for Excellence in Education has taken a neutral position on the OSD referendum, but the partnership’s president, Steve Dolinger, is advocating this:
“The important thing is Georgia voters do their own homework on this issue and make their decision based on solid research and fact-finding, not emotion,” Dolinger, who was superintendent of Fulton County Schools (1995-2002), said in an email to the Ledger-Enquirer from Bill Maddox, the partnership’s communications director. “Both sides make compelling arguments, but it should always come down to what the voter feels is right for the children of our state.”
BY MARK RICE
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Puerto Rico was just hit by an island-wide power outage — here are the best charities to donate to for victims of Hurricane Maria
Puerto Rico was just hit by an island-wide power outage — here are the best charities to donate to for victims of Hurricane Maria
The Center for Popular Democracy – located in Brooklyn, New York – has launched the Maria Fund, which is focusing on...
The Center for Popular Democracy – located in Brooklyn, New York – has launched the Maria Fund, which is focusing on aid for low-income communities of color, women, and girls in Puerto Rico.
Read the full article here.
Report Says Minnesota's Job Boom Has Skipped Minorities
Minneapolis/St. Paul Business Journal - March 6, 2015, by Mark Riley - Minnesota's unemployment rate for black job-...
Minneapolis/St. Paul Business Journal - March 6, 2015, by Mark Riley - Minnesota's unemployment rate for black job-seekers is four times the rate for whites, according to a new report that calls on the Federal Reserve to keep rates low until the job market recovers for minorities.
WCCO has a story on the report, released by the Economic Policy Institute and the Center for Popular Democracy, and talks with Neighborhoods Organizing for Change Executive Director Anthony Newby. "We're told that Minnesota is one of the best places in the country to live if you want a job, and that's true if you're a white person," he said.
Statewide, the unemployment rate for African Americans is 11.7 percent, compared to 3.2 percent for whites.
You can download a PDF of the the full report here.
The numbers highlight some of the same criticisms leveled at a recent Atlantic piece about the " Miracle of Minneapolis". That article focused on the economic might and resiliency of the market, but didn't include racial breakdowns — something that was immediately called out by the Washington Post and others
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Frustrated Employees Say Starbucks Still Needs to Improve Horrible Work Schedules
Frustrated Employees Say Starbucks Still Needs to Improve Horrible Work Schedules
Source: Grub Street...
Source: Grub Street
In August 2014, Starbucks promised to start making baristas' schedules more manageable. If complaints from baristas 15 months later are any indication, however, corporate still has its work cut out.
While fast-food workers rallied in 270 cities on Tuesday for better pay, a group of Starbucks workers apparently spent the daydemonstrating in front of Seattle's Pike Place location to protest what they say are ongoing scheduling snafus. A report recently backed up these claims: The advocacy group Center for Popular Democracy asked 200 employees about their workweeks, and many said they still get schedules with almost no advance notice and still do "clopenings," the infamous shift where a barista closes the store at night and returns hours later to open it the following morning.
Work life has improved for some baristas, but others claim corporate isn't doing nearly enough to fix the mind-set "that being sick is your fault." Inan essay posted this week on Medium, Darrion Sjoquist, a barista whose mom also worked at Starbucks, wrote that his store still expects workers to find someone to cover their shift, no matter the situation:
"You are expected to show up for work if your son has been missing for 24 hours or your grandfather has died. If you are so sick that it hurts to speak, you are expected to call and text and beg every available person and ask them to sacrifice their day off, their precious hours before work or after school to help you solve a problem neither of you had any control over."
As an example, he recounts a recent 4 a.m. phone call he got from a co-worker:
As soon as she said my name, I knew why she was calling. She was sick. She asked if I could cover her 4:30 a.m. to 10:30 am shift that morning. She’d tried every number she could and was having difficulty speaking, let alone standing and working for six hours. She said she didn’t know who else to call or what else she could do. She asked if I could cover even part of her shift.
"I said yes. I worked her six-hour shift that morning and returned an hour later to work my own eight-hour shift that afternoon. I worked her shift because if I hadn’t, no one would have, or even worse, she would have tried."
He and a group of baristas sent a letter to CEO Howard Schultz in hopes that "he hears my story," but they haven't gotten a reply yet. The company hasn't said much of anything lately about this mess, but at the time of that Center for Popular Democracy report, a rep noted there was still "work to do."
Communities Demand End to HUD Distressed Loan Sales
US Finance Post - September 10, 2014, by Christine Layton - Community groups and homeowners in 10 cities have started...
US Finance Post - September 10, 2014, by Christine Layton - Community groups and homeowners in 10 cities have started to rally at local offices of the Department of Housing and Urban Development (HUD), calling for an end to a program that sells off delinquent loans to investors, HousingWire reports.
The groups are protesting the HUD Distressed Asset Stabilization Program, which was created two years ago to auction delinquent loans to the highest bidders. In 2010, the government began selling delinquent mortgages that are at least 90 days past due to the highest bidder in an attempt to help the FHA rebuild cash reserves that were hit hard by loan defaults during the recession.
In the first 2 years, the FHA sold 2,000 loans in six auctions. In September 2012, when the loan pools were expanded under the new DASP program, it sold over 3,000 loans during the first auction.
The community groups claims these sales harm stabilization goals in neighborhoods, including affordable housng and homeownership.
“We’re seeing an unprecedented rise of the corporate landlord, and HUD’s DASP is just facilitating the process,” said Rachest Laforest, executive director of the Right To The City Alliance. She argues that HUD should instead use a system to favor nonprofit bidders whose mission is to invest in the community with greater requirements for winning bidders to preserve homeownership and offer affordable housing options to homeowners.
In a report released earlier this month, HUD said it sold $15.8 billion in nonperforming loans since 2010, which reduces losses to its insurance fund and saves homeowners from foreclosure. New reports claim the program helps the FHA avoid having to get more money from taxpayers, although it is questioned whether there are any efforts to protect neighborhoods that are hit hard by foreclosures.
About 97% of loans sold have gone to for-profit, private investors, such as private equity firms, hedge funds and mutual funds. Just 11% of the loans sold under DASP are considered “re-performing,” according to a report released by the Center for American Progress, while 22% were allowed to short sale or the property was surrendered for loan forgiveness. One-third were turned around and re-sold, while another one-third went into foreclosure.
“These are companies that put the financial gains of their shareholders first and community stabilization second — or I would say it’s not even necessarily a priority for them,” said Connie Razza, co-author of a report released by the Center for Popular Democracy and the Right To The City Alliance.
The group has sent a petition to Julian Castro, who took over HUD, which houses the FHA, asking that he stop selling loans under DASP until the program an be strengthened and refocused on improving neighborhoods.
During the housing crash, the share of FHA loans skyrocketed as homeowners could not get private loans, increasing from 2% of mortgages in 2006 to almost one-third by 2009. A wave of defaults put the FHA’s mortgage insurance fund into the red, and it took its first $1.7 billion taxpayer bailout in 2013. So far, almost 100,000 non-performing loans have been sold under DASP, giving the FHA a net of $8.8 billion.
Source: US Finance Post
Fed Up Coalition Complains About Jackson Hole Room Cancellations
Fed Up Coalition Complains About Jackson Hole Room Cancellations
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson...
A group of activists planning to attend the Federal Reserve Bank of Kansas City’s annual economic symposium in Jackson Hole, Wyo., has filed a complaint with the National Park Service, the Department of the Interior’s Inspector General’s Office and the Justice Department after the conference hotel canceled the group’s room reservations.
The Center for Popular Democracy’s Fed Up Coalition said in an Aug. 9 letter that it booked 13 rooms in May at the Jackson Lake Lodge for its members for the nights of Aug. 24, 25 and 26. Last month, the lodge informed the group that their reservations had been canceled because of a “computer glitch,” according to the letter.
But the lodge didn’t cancel the reservations for other guests who booked after Fed Up did, said the letter written by Ady Barkan, campaign director of Fed Up, a left-leaning group that has lobbied for more diversity among Fed officials and more openness about the selection of regional Fed bank presidents.
“It is very hard for me to interpret the Company’s actions as anything other than a specific targeting of the Fed Up coalition,” he wrote in the letter.
Mr. Barkan said the group booked rooms at other hotels farther away from the conference, which will make it difficult for activists to attend events.
The Jackson Hole conference draws central-bank officials and economists from around the world who gather near the Grand Tetons to discuss monetary policy.
Fed Up members have been attending the conference for the past two years to urge Fed officials to hold off on raising interest rates, arguing that higher borrowing costs will slow economic growth and hurt low-income households. The group’s members often hold events and rallies near Fed events, wearing their signature green T-shirts.
A spokesperson for the Jackson Lake Lodge didn’t return a call for comment. Kathy Kupper, a spokeswoman for the National Parks Service said the lodges are run by independent contractors who are responsible for their day-to-day operations.
Mr. Barkan said he was writing the letter “to file a formal complaint regarding improper and potentially illegal behavior,” by the company.
By David Harrison
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The Fight for Paid Sick Leave Moves South
It’s not surprising that the same sort of coalition of elected officials advancing the fight against SB4 have turned to...
It’s not surprising that the same sort of coalition of elected officials advancing the fight against SB4 have turned to this issue,” said Sarah Johnson, the director of Local Progress. “Workers and immigrants are important to the foundation of cities. The work being done around SB4 has created a strong coalition that has advanced from defense to offense.
Read the full article here.
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