Simplify Investments to Keep Them Clean
New York Times - May 11, 2014, Room for Debate: Connie Razza - Public pensions are under threat from outright fraud as...
New York Times - May 11, 2014, Room for Debate: Connie Razza - Public pensions are under threat from outright fraud as well as the financial sector’s drive to generate higher profits for itself, regardless of the cost to our communities. The public can take simple steps to eliminate this danger. Investments should be put in index funds, which typically outperform actively managed portfolios. A recent comprehensive study of the performance of state pension funds found that the 46 state funds studied could save $6 billion in fees annually, while achieving returns as good or better than their actively managed portfolios. Most privately managed pensions already pursue indexing strategies, through vehicles like Amalgamated Bank’s LongView Funds, and successfully secure strong retirement savings for participants. Public pension funds should index a significant portion of their funds under management to save billions while still generating first-rate returns.
Index funds outperform managed portfolios. Relying on them would save on fees and avoid underhanded behavior.
These funds would also save significant amounts in management fees by hiring talented in-house investment managers for significant portions of actively managed pension assets.
Any investment should be presented in plain language in a standardized, easy-to-read template, so trustees and pension participants know exactly what the product does, how it makes money and what its fees and risks are. Like cell phone agreements, all fees should be disclosed up front. Like credit card bills, actual returns and long-term, historical performance should be clearly presented. Oversight of fiduciaries should be bolstered and any who violate their responsibility to retirement funds should be pursued legally. When the State Employees Association of North Carolina hired a pension forensic investigator, they found that the state treasurer Janet Cowell had invested $30 billion in illegal, high-risk funds, causing $6.8 billion in losses. A more robust standing oversight body could have prevented much of that improper investment. The state should aggressively prosecute both pension trustees and private investment managers who put their own benefit above the interest of pension participants. More eyes on the management of retirement assets would help ensure responsible investment strategies and management. Creating a publicly managed pool of retirement funds would invest more residents in pension management, while ensuring that fewer workers would find themselves insecure in retirement. And, increased pension funds make possible more diverse, responsible investments for the actively managed portions of the funds. For instance, funds can take a decisive role in infrastructure investments that will both improve their communities and provide steady, long-term returns.
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Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists launch #BackersOfHate to call out major companies with ties to Trump
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to...
Activists are fearlessly taking on some of the biggest corporations in the U.S., calling them out for their ties to President Donald Trump.
A newly launched website called BackersOfHate.org breaks down how nine major corporations are affiliated with the Trump administration and the ways they will gain from the Trump agenda. The website also outlines current company policies that already negatively impact people of color, immigrants, Indigenous communities, and low income populations — similar to critiques of the Trump agenda.
Read the full article here.
Did two women in an elevator just change everything?
Did two women in an elevator just change everything?
Jeff Flake loves decorum, but it doesn't look like it was decorous behavior that moved him to reconsider a vote that...
Jeff Flake loves decorum, but it doesn't look like it was decorous behavior that moved him to reconsider a vote that could change the country's future. Was it two women in an elevator, yelling at him?
Read the full article here.
Fed’s Kashkari to Spend Day in Life of Struggling Black Family
Fed’s Kashkari to Spend Day in Life of Struggling Black Family
Neel Kashkari tried living on streets for a week during his failed run for California governor in 2014. Now, the...
Neel Kashkari tried living on streets for a week during his failed run for California governor in 2014. Now, the president of the Federal Reserve Bank of Minneapolis will spend a day in the life of a black family barely making ends meet.
“Walking a day in somebody else’s shoes is actually -- it makes the anecdotes that much more real,” Kashkari, 43, told reporters Wednesday in Minneapolis after a meeting with the local community to discuss race and economic inequality. “It influences how I think about the problems we face.”
Kashkari, a former Goldman Sachs Group Inc. executive who went on to oversee the U.S. government’s $700 billion financial rescue program, took the helm of the Minneapolis Fed in January.
National poverty levels among blacks stand at 26 percent, more than double those for whites. Fed Chair Janet Yellen has discussed inequality and the fact that minorities have higher unemployment than whites in speeches and testimony to Congress.
Outrage has mounted in the U.S. over a recent spate of fatal shootings of black men by police, some of which were filmed and broadcast over social media, worsening racial tensions in many communities.
On Wednesday, Kashkari, whose parents emigrated to the U.S. from India, heard Rosheeda Credit describe how she and her boyfriend worked three jobs between them to support their family. She then invited him to find out himself what it was like by spending the day with her.
Kashkari said he’d be “happy to do it.”
The Fed has also been under fire from Democrats, including presidential nominee Hillary Clinton, for a lack of diversity on the boards of directors on the 12 regional Fed banks. Kashkari said the central bank had a lot of work to do to improve diversity and was committed to making that happen.
By ALISTER BULL & JEANNA SMIALEK
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Why it’s hard to legislate good corporate behavior
San Francisco, the country’s premier laboratory for new Internet services, is also used to innovating in municipal...
San Francisco, the country’s premier laboratory for new Internet services, is also used to innovating in municipal regulation.
But in its latest experiment, it’s starting to find that legislating good corporate behavior isn’t as easy as pressing a button on your smartphone.
In July, the city started implementing a first-in-the-nation law aimed at curtailing the trend towards “just-in-time” scheduling, where managers call in employees to work on short notice. The new measure requires large chain retailers— such as Safeway and Walgreen’s — to publish schedules at least two weeks in advance, and to compensate employees with “predictability pay” if they make changes less than a week ahead of time. It also mandates that additional hours be offered to existing employees first before new hires are made, and that part-time workers be paid at the same rate as people who work full-time.
So far, it’s been easier to publish schedules than live up to the spirit of the law.
"The two-week notice seemed to be instituted right away, but the other stuff is lagging,” says Gordon Mar, director of San Francisco Jobs With Justice, a labor-backed group that pushed for the “Retail Workers Bill of Rights” and has been monitoring its implementation.
The sluggish response may be because fines don’t kick in until Oct. 3; the city is still hashing out the rules. But the spotty compliance so far highlights the difficulty of attempts to mandate worker-friendly practices — especially the kind that touch the most fundamental aspects of business operations, rather than those that simply require higher pay and better benefits.
San Francisco employers fought the new ordinance, but couldn’t prevent its passage. Now, they complain it’s impacting service.
“We’re hearing from members in San Francisco that it really is not working well at all,” says Ronald Fong, president of the California Grocers Association. Stores can’t always predict surges in foot traffic, which might be brought on a sunny day, leaving managers without the option to bring in more staff. That was a problem during the heat wave that swept over San Francisco this summer.
"Supplies weren’t able to get out to the shelves,” Fong says. "It just kind of snowballed, and our customers have a bad experience, or the stores lose sales.”
Some businesses don’t mind the rules in principle, but object to the red tape. "Everybody pretty much operates on a predictive schedule,” says Bill Dombrowski, president of the California Retailers Association. “But the process of implementing this, with offering the employees hours in writing and waiting three days for a response, it’s a lot of government intrusion into very minute detail.”
Also, not all industries schedule their workers in the same way. Milton Moritz is president of the National Association of Theatre Owners’ California and Nevada chapter, and says the theater business is by nature unpredictable, making the new law particularly difficult to comply with.
“We might not know until the Monday before the Friday a film shows, and even then we’re hiring, firing, scheduling people based on the business that film’s going to do,” Moritz says. “This ordinance flies in the face of all that. It really complicates the issue tremendously.”
The San Francisco ordinance hasn’t just been irritating for big companies. Some workers grumble the law discourages employers from offering extra shifts on short notice, because they would have to pay the last-minute schedule change penalty — even if workers would be happy for the chance to pick up more hours.
Rachel Deutsch, a senior staff attorney with the Center for Popular Democracy who has been helping local jurisdictions across the country craft fair-scheduling legislation, says that’s something that might change in future iterations.
"I think that’s the thing with any policy where it’s the first attempt to solve a complicated economic problem,” Deutsch says. "It’s been a learning process.”
So far, fair scheduling laws aren’t spreading as quickly as minimum wage and paid sick leave laws. A statewide bill in California failed a couple weeks ago, and no other local ordinances have passed besides San Francisco’s, though there are active campaigns in several cities including Minneapolis and Washington D.C.
Meanwhile, several companies have acted on their own to curb some of the practices that workers have found most disruptive, like on-call shifts, where workers have to be available even if they aren’t ultimately asked to work. But in some cases — like that of Starbucks, which committed to eliminating many of those practices — those voluntary changes haven’t been any more effectivethan government mandates.
Erin Hurley worked at Bath & Body Works and campaigned for an end to on-call shifts. After she left the job, parent company L Brands said it would stop the practice at Bath & Body Works as well as another of its chains, Victoria’s Secret. But Hurley says she’s heard from current workers that managers are still doing effectively the same thing, by asking employees to stay a little longer.
“On-call shifts were replaced with shift extensions,” says Hurley. “Basically what L Brands did was change the name of the practice.” Keeping people on-call is very convenient for employers, and letting it go can be easier said than done. (L Brands did not respond to a request for comment.)
Still, advocates in San Francisco think the Retail Workers Bill of Rights has already done some good, and will be more effective when the city’s enforcement kicks into high gear — just like overtime rules did, when companies got used to obeying them.
Take Michelle Flores, 21, who has worked part time at Safeway for two years to support herself while in going to college. Unpredictable schedules made that difficult: She would only know her shifts a few days beforehand, which sometimes didn’t leave her enough time to hit the books.
"I would study from midnight until 5, 6 a.m., sleep for two or three hours, and then go to the exam,” says Flores, 21, who attends San Francisco State. This year, she expects that to change. "If I know that I have a shift scheduled, I’ll just study another day,” Flores says.
Also, the law came with some funding for community organizations to make employees aware of what workers are entitled to. That has ancillary effects — like getting people interested in joining a union, which can be better equipped to make sure companies are following the rules.
“It just creates an opportunity to talk to more workers about their rights under the law, and that leads to conversations about other issues in the workplace,” says Gordon Mar, of Jobs with Justice. “And that could lead to getting organized.”
Source: Washington Post
Nueva York pagará abogados a algunos inmigrantes
El Nuevo Herald - July 18, 2013, by Claudia Torrens - Nueva York se prepara para dar otro paso en su tradición de ayuda...
El Nuevo Herald - July 18, 2013, by Claudia Torrens - Nueva York se prepara para dar otro paso en su tradición de ayuda a inmigrantes: planea pagar los abogados de oficio que necesitan cuando se presentan ante un tribunal de inmigración para defenderse de un orden de deportación.
Para finales de este año o principios de 2014, algunos inmigrantes, autorizados o no, que enfrenten la deportación podrán presentarse ante el juez de inmigración con un abogado de oficio pagado con fondos municipales, reduciendo así sus posibilidades de ser deportados. Activistas, un magistrado federal y funcionarios locales planean anunciar el viernes que el gobierno municipal ha destinado 500.000 dólares a financiar un programa piloto que ofrecerá representación legal a inmigrantes.
Brittny Saunders, de la organización Center for Popular Democracy, dijo a The Associated Press que es la primera vez que un programa de este tipo se implementa en una municipalidad de Estados Unidos.
"La intención es reunir información sobre los beneficios que la representación legal supone tanto para un individuo detenido y en proceso de deportación como para su familia, su comunidad y la ciudad entera", dijo Saunders. "Esperamos que este programa sea un modelo para otras comunidades en todo el país".
Los inmigrantes que acaban en los tribunales de inmigración y que enfrenten la deportación no tienen derecho a ser defendidos por un abogado de oficio. Pueden contratar a un abogado privado, pero muchos no tienen el dinero para pagar ese servicio. Es por ese motivo que el gobierno municipal, varios activistas y el juez federal Robert Katzmann han unido esfuerzos para ofrecer ayuda a inmigrantes en esta situación.
Saunders dijo que en el estado de Nueva York una media de 2.800 inmigrantes enfrenta anualmente la deportación sin acceso a asistencia legal. Muchos de ellos, explicó, con frecuencia son detenidos por infracciones a las leyes de inmigración, como quedarse en Estados Unidos una vez vencida su visa.
El Congreso debate en estos momentos una reforma a las leyes de inmigración y el proyecto de ley aprobado por el Senado hace unas semanas propone un camino a la naturalización de 11 millones de inmigrantes sin autorización para vivir en el país. El gobierno del presidente Barack Obama deportó a más de 400.000 inmigrantes en el año fiscal 2012, una cifra récord.
El juez federal Katzmann y su grupo "Study Group on Immigrant Representation" publicó un informe en el 2011 que indicaba que 18% de los inmigrantes detenidos en Nueva York que cuentan con abogado salen adelante con su caso, mientras que entre los que no tienen asesoría jurídica, la cifra es de sólo 3%.
Entre los inmigrantes no detenidos, 74% sale adelante, mientras que entre los que no tienen asesoría legal la cifra es de 13%, señala el informe.
El programa piloto que se planea presentar el viernes — llamado "New York Immigrant Family Unity Project" (Proyecto por la Unidad Familiar de los Inmigrantes en Nueva York) — necesita escoger a través de un proceso público de varios meses a una organización sin ánimo de lucro que ofrezca sus abogados para la representación legal.
La presidenta del Concejo Municipal de Nueva York, Christine Quinn, ha sido una de las impulsoras del financiamiento del programa. Quinn aspira a ser la próxima alcaldesa de la ciudad durante elecciones municipales en noviembre.
En Nueva York viven más de tres millones de personas nacidas en otros países, según información del Censo.
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Zara stores in NYC accused of discriminating against black employees and customers
According to a new report published by the Center for Popular Democracy, ZARA’s New York City locations have a serious problem with discrimination.
Study author Chaya Crowder writes that Zara has a “documented history of racial insensitivity in its designs, discriminatory treatment of its employees, and prejudice agains its customers.” Zara, as you may remember, is the company that caught flack for items like a bag with a swastika on it, a striped shirt with a gold star that looks very much like what Jews were forced to wear in concentration camps during the Holocaust, and a T-shirt bearing the phrase “white is the new black.” Charming stuff!
So it’s hard to be completely shocked by the report’s conclusions—after surveying employees at six of Zara’s NYC stores (for context, eight of the Spanish retailer’s 53 U.S. locations are in the city), Crowder found that most employees feel workers with lighter skin are treated better. From the report:
Employees of color agreed most strongly that ‘managers show favoritism.’ Many of the employees interviewed felt that favoritism is based on race. One employee stated ‘Managers definitely show favoritism to the Europeans.’ Another employee asserted, ‘The favoritism goes to those that are not African American or Latino’… In general, employees with a longer tenure at Zara identified favoritism, especially race-based favoritism, as an issue.
And, employees say that customers are treated with bias, as well. According to Crowder, Zara workers say that that the code “special order” is used as a way to trail suspected shoplifters in the stores. The people trailed, say employees, are disproportionately black:
A preponderance of employees surveyed mentioned a practice of labeling customers as ‘special orders,’ a security code for suspected shoplifters. Employees overwhelmingly felt that the Zara practice led to Black customers being disproportionately labeled as special orders upon entry to Zara stores.
A Zara spokesperson told the Guardian that “Zara USA vehemently refutes the findings,” adding that Crowder did not try to reach the company.
Zara’s parent company, Inditex, reiterated to Fusion in an email that Zara USA refutes the accusations, adding that the report “was prepared with ulterior motives,” and that “it fails to follow an acceptable methodology for the conduct of a credible objective survey on workplace practices, and instead appears to have taken an approach to achieve a pre-determined result which was to discredit Zara.”
But Zara is currently being sued by a former employee who says he was harassed and later fired because he’s gay, Jewish, and American.
This, of course, is not the first time a major retailer has been accused of discrimination. Back in 2013, sources at Barneys said racism against black customers was part of the culture at the luxury department store.
Zara’s parent company, Inditex, reiterated to Fusion in an email that Zara USA “vehemently refutes the claims,” adding that the report “was prepared with ulterior motives,” and that “it fails to follow an acceptable methodology for the conduct of a credible objective survey on workplace practices, and instead appears to have taken an approach to achieve a pre-determined result which was to discredit Zara.”
Source: Fusion
Think The Minimum Wage Will Be Safe Under Labor Secretary Puzder? Not So Fast.
Think The Minimum Wage Will Be Safe Under Labor Secretary Puzder? Not So Fast.
This year was supposed to be a good one for America’s workers. After all, nearly 12 million workers won higher wages in...
This year was supposed to be a good one for America’s workers. After all, nearly 12 million workers won higher wages in 2016, the result of sustained and coordinated efforts around the country. There’s a catch though: if these wages aren’t enforced, American workers will never even see them.
And despite widespread support, state and local lawmakers and business communities have already begun threatening to not comply with the wage hikes. In Maine, Governor Paul LePage ordered his administration to stop enforcing a minimum wage hike that 60 percent of his state’s residents voted for, telling employers who violate the law that they would be off the hook.
At the other end of the country in Flagstaff, Arizona, 54 percent of city residents backed a $15 minimum wage in elections last year, but business groups are fighting to move enforcement from a local authority to a state commission, which would likely delay the processing of claims. The state as a whole has backed higher wages, approving a proposition to raise the state’s minimum to $12 by 2020 last year.
In the face of such attacks at the city and state level, it’s imperative to have a federal Labor Department committed to ensuring that workers aren’t cheated out of their wages - wages not only earned through hard work but also guaranteed by law.
This won’t be the case if Andy Puzder becomes Labor Secretary. As chief executive officer of CKE Restaurants, the parent company of Carl’s Jr. and Hardee’s, Puzder consistently flouted basic labor standards.
Puzder, whose confirmation hearing has already been put off multiple times, could easily fail to enforce the wage increases that prevailed in referendums throughout the country, and he’s likely to put even the existing protections we have in jeopardy - including the minimum wage, which currently stands at a paltry $7.25.
It’s the proverbial fox guarding the hen house, a term that we seem to be asserting with every cabinet appointee, but that rings even more true with Puzder.
Just last week, CKE Restaurants was hit with nearly two dozen charges of stealing wages. Multiple workers said they had worked for weeks without seeing a paycheck. One was only paid after he stopped coming to work in protest.
CKE has also come under fire for paying employees with pre-paid debit cards that incur fees on certain ATMs, in effect shorting employees their full paycheck.
If Puzder runs the Labor Department like he runs his company, these kinds of abuses will be allowed to flourish nationwide – and workers will lose one of their most important outlets for addressing their concerns.
For working Americans, it could be a disaster of epic proportions
And CKE is far from the only chain that regularly skirts labor laws. In fact, wage theft runs rampant across the restaurant industry, as well as retail and other low-paying service jobs. A National Employment Law Project study found that more than two-thirds of low-wage workers in New York City, Chicago and Los Angeles had experienced wage theft in the previous workweek. The Economic Policy Institute in 2014 calculated that wage theft cost Americans as much as $50 billion every year
Some states, realizing the scope of the problem, have taken steps to improve oversight in recent years. In New York, 2010 workers won the strongest protections against wage theft in the country. After passage of a significantly higher minimum wage last year, Governor Cuomo followed up with a 200-person task force to ensure wages are being paid.
Yet state action can only do so much. The Department of Labor sets standards for wage enforcement around the country and is the front-line agency for filing many wage theft cases. A 2009 Government Accountability Office report found that weak oversight during the Bush years had left thousands of workers stranded with nowhere to turn.
We have made too much progress to turn back now. Taking the teeth out of oversight hurts workers and hurts the overall economy. Members of Congress need to make clear that Puzder’s persistent record of wage theft disqualifies him from the job of Labor Secretary – and, if Puzder is confirmed, states must show that they are willing to stand up for workers on their own.
By JoEllen Chernow
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Opioid protest at Harvard art museum
Opioid protest at Harvard art museum
ctivists said that this was the fourth protest of its kind targeting an art gallery or school named after the Sackler...
ctivists said that this was the fourth protest of its kind targeting an art gallery or school named after the Sackler family. The Sacklers have their names on spaces at the Louvre, the Royal Academy of Arts, the Smithsonian, and the Guggenheim in New York, among others. The Center for Popular Democracy, the nonprofit that supports the Opioid Network, also participated in Goldin’s protest at the Smithsonian Institution’s Arthur M. Sackler Gallery in April.
Read the full article here.
La Reserva Federal debe ser un reflejo de nuestras comunidades
La Reserva Federal debe ser un reflejo de nuestras comunidades
Ocho años después del inicio de la Gran Recesión, a las comunidades de color todavía les cuesta recuperarse. La tasa de...
Ocho años después del inicio de la Gran Recesión, a las comunidades de color todavía les cuesta recuperarse. La tasa de desempleo de los afroamericanos a nivel nacional es de casi 9%, más del doble que la tasa de 4.3% de los estadounidenses de raza blanca, y entre los latinos es un lamentable 6.1%.
Las comunidades que siguen afectadas por la recesión han notado estas disparidades y han llevado sus reclamos directamente a la Reserva Federal, pues dada la facultad de esta de modificar la tasa de interés, sus medidas influyen enormemente en el desempleo y los salarios. En los últimos dos años, una coalición de líderes comunitarios, sindicatos y trabajadores mal remunerados se han quejado de la política y dirección de la Reserva Federal, que desde hace mucho tiempo opera fuera de la vista del público.
Pero eso está empezando a cambiar a medida que queda cada vez más claro que la recuperación sigue siendo enormemente dispareja. Hoy en día, se critica cada vez más a la Reserva Federal por no hacer lo suficiente para ayudar a las comunidades de color a recuperarse.
Este mes, más de 100 miembros del Congreso enviaron una carta a la Reserva Federal, con la cual se sumaron a las quejas y exigieron más diversidad racial, económica y sexual. Actualmente, en el sistema de la Reserva Federal predominan los hombres blancos y miembros del sector financiero, quienes están más protegidos de los efectos que persisten de la recesión.
Un informe reciente del Center for Popular Democracy señaló que un descomunal 83% de los miembros de la Reserva Federal son blancos, en comparación con 63% de todos los estadounidenses. Ni un solo presidente regional es latino o de raza negra. De hecho, nunca en la historia de la Reserva Federal ha habido un presidente regional afroamericano. Es más, solo 11% de ellos provienen de grupos comunitarios, sindicatos o el entorno académico, y casi 40% provienen del sector financiero.
Esto es un problema. Si casi todos los encargados de dictar la política son banqueros blancos, y no se oyen las voces de las mujeres, minorías y representantes de grupos de trabajadores y consumidores, se desatenderán las necesidades de dichos grupos.
Hillary Clinton, quien se tiene previsto sea la candidata demócrata a la presidencia, se ha unido a las quejas y ha dicho públicamente que si la eligen, se esforzaría por remplazar a los banqueros de los directorios de la Reserva Federal con más miembros latinos y afroamericanos.
Por fin se está cuestionando a una de las instituciones menos trasparentes pero vitalmente importantes del país. Ya que la Reserva Federal se dispone a tomar una decisión sumamente importante en junio con respecto a las tasas de interés, miles en todo el país seguirán exigiendo decisiones que beneficien a todos los estadounidenses, no solo a una porción privilegiada de la población. Ya que los latinos y otras comunidades en desventaja en todo el país siguen sufriendo las consecuencias de la recesión, no se puede dejar que la Reserva Federal siga operando a puerta cerrada.
By Rubén Lucio
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