Here's How to Make the Fed More Transparent and Accountable
The Federal Reserve has long faced fierce scrutiny from members of Congress, community leaders, and the press for its...
The Federal Reserve has long faced fierce scrutiny from members of Congress, community leaders, and the press for its lack of transparency. Fed Chair Janet Yellen, still early in her term, has signaled an intention to improve transparency and hold the Fed accountable to the public interest, and she’ll face an important test this month as she starts deciding whom to appoint to the newly formed Community Advisory Council.
In the most recent example of Fed’s insular system of governance, Bloomberg Business revealed concerning news about the recent appointment of Patrick Harker as president of the Philadelphia Federal Reserve. Harker had served on the bank’s Board of Directors prior to his appointment, and was even on the search committee interviewing candidates for the presidential slot. Then, in a behind-the-scenes maneuver reminiscent of Dick Cheney’s infamous self-selection as George W. Bush’s running mate, Harker became a candidate for the job himself, and was swiftly chosen by his Board colleagues. Harker’s shadowy appointment process was par for the course at the Fed. In Dallas, the presidential appointment process has been downright dynastic: the outgoing president, Richard Fisher, appointed an advisory committee made up of the people who appointed him to help select his successor.
Chair Yellen has an immediate opportunity to reverse course and change the face of the Fed. This year, the Fed announced the creation of a Community Advisory Council, intended to offer Fed leaders “diverse perspectives” on the economy, “with a particular focus on the concerns of low- and moderate-income populations.” Applications for the Community Advisory Council were due last week. The question facing Fed officials is whether they will appoint individuals to the Council who represent low- and moderate-income voices, or whether the Council will be another elite echo chamber (one earlier predecessor to the Council was heavy on members from for-profit lenders like Capital One and Citigroup—hardly organizations representing the interests of working families).
The announcement of the CAC was a direct response to growing demand for greater public representation at the Fed, and it’s not hard to see why. Of the 108 members of the 12 banks’ boards of directors (which select and oversee those 12 presidents), only 15 come from the nonprofit sector, academia, or labor organizations. The other 93 come from corporations or banks, even though the law requires that two-thirds represent a “diverse” set of interests, including those of labor and consumers. Fed officials lack diversity in other ways, too: among governors and presidents, all but one are white, and the vast majority are men.
Fed officials have huge power over the American economy: They vote on crucial monetary policy decisions, determining whether we reach full employment with rising wages for all or whether the economy continues toward stagnation and inequality. As long as Fed bodies are dominated by the financial sector, their decisions will reflect the perspectives of the very entities the Fed is meant to oversee, rather than the working families across the country who need higher wages and more equitable economic growth.
So, who will lead the Fed in the years to come? Next February, the terms of all 12 regional Fed presidents expire. Their respective Boards of Directors will decide whether to reappoint the presidents or replace them. A coalition of community-based organizations, faith leaders, policy advocates, and labor unions are calling for the Federal Reserve to make this process more transparent. At a bare minimum, the banks should publicize the schedule for the decision-making, the names and roles of the decision-makers, the criteria that will govern the process, and the names of candidates under consideration. A more public process would involve the opportunity for members of the public to serve on the search committees, mechanisms for the public to submit questions and receive answers from prospective candidates, and public forums where Fed officials actually engage in dialogue with the people whom they are supposed to represent. Chair Yellen and officials at the Fed have the power to implement such reforms, and their decisions will speak volumes about their commitment to building an independent central bank with democratic legitimacy.
Janet Yellen’s appointment as the first woman to lead the Fed signaled that change might be coming to a historically opaque institution. But to truly transform the Fed, Yellen and her fellow governors must ensure that the voices of working families aren’t drowned out by wealthy financial interests. The first step is ensuring that the new CAC lives up to its mission by including women, people of color, and representatives of organizations with low- and moderate-income members. It could even directly install some low- and moderate-income individuals on the Council. That would indeed bring new perspective to an institution that has, for too long, been dominated by the voices of America’s elite.
Source: The American Prospect
Gap Says It Will Phase Out On-Call Scheduling of Employees
The move makes Gap the latest retailer to move away from “on-call scheduling,” which regulators, workers’ rights groups...
The move makes Gap the latest retailer to move away from “on-call scheduling,” which regulators, workers’ rights groups and some academics say is detrimental to employees and their families.
“At Gap Inc., we also believe that work-life integration enables all employees to reach their full potential and thrive both personally and professionally,” the company said in a statement on its blog announcing the change on Wednesday. “We recognize that flexibility, inclusive of consistent and reliable scheduling, is important to all of our employees.”
On-call scheduling requires employees to call ahead before a specific shift to see if they will be needed, a practice that gives workers little predictability in scheduling. Facing public and regulatory pressure, some retailers, including Abercrombie & Fitch, Starbucks and Victoria’s Secret, have already begun phasing out the practice.
Gap said its five brands — Athleta, Banana Republic, Gap, Intermix and Old Navy — had agreed to stop on-call scheduling by the end of next month and have committed to providing employees with at least 10 to 14 days’ notice, according to Wednesday’s announcement.
In April, the New York attorney general, Eric T. Schneiderman, sent a letter to more than a dozen retailers, including Abercrombie & Fitch, Gap, J. C. Penney and Victoria’s Secret, requesting more information about on-call scheduling and questioning whether such practices were legal. In the months since, Abercrombie & Fitch and Victoria’s Secret both announced they would discontinue it.
Mr. Schneiderman praised Gap’s decision in a statement on Wednesday.
“Workers deserve stable and reliable work schedules, and I commend Gap for taking an important step to make their employees’ schedules fairer and more predictable,” he said.
Gap had already begun scaling back the use of on-call shifts after starting a pilot program last year to test alternative scheduling practices. Mr. Schneiderman’s office told Gap last week that it would consider legal action if the retailer did not take steps to end on-call scheduling, according to Eric Soufer, a spokesman for the attorney general’s office.
A recent study by the Economic Policy Institute, a liberal advocacy group, found that the children of parents who worked unpredictable schedules could have inferior cognitive abilities, in areas like verbal communication, and struggle with anxiety and depression.
“Parents’ variable schedules require irregular family mealtimes and child bedtimes that interfere with children’s healthy development,” the study said.
Correction: August 28, 2015
An article on Thursday about an agreement by five Gap apparel store brands to stop requiring employees to make themselves available for last-minute shifts misstated when the policy change will become effective. It is the end of next month, not the beginning of next year.
Source: New York Times
Ahead of Black Friday, Walmart Workers Brief Capitol Hill Lawmakers
People's World - November 19, 2014 - Sen. Elizabeth Warren, D, Mass., Rep. George Miller, D,Calif., and legislative...
People's World - November 19, 2014 - Sen. Elizabeth Warren, D, Mass., Rep. George Miller, D,Calif., and legislative experts held a committee briefing today, titled Walmart and the Economic Insecurity of American Families. Only a week before Black Friday job actions that are expected at more than 1,000 Walmart stores nationwide the lawmakers heard from members of OUR Walmart on how the country's largest employer is creating an economic crisis for working families in America.
"I was glad to join Walmart employees today to support efforts to push back against practices by Walmart and other big corporations that make it hard for working families to make ends meet," said Warren. "Hardworking men and women across the country want a fighting chance to build a future for themselves and their families. We need to give workers this chance by raising the minimum wage, providing some basic fairness in scheduling, and fighting for equal pay for equal work."
"Walmart's shoddy business model is singlehandedly wreaking havoc on American families across the country and making it impossible for hundreds of thousands of workers to have a shot at the American Dream," said Miller, senior Democrat on the House Committee on Education and the Workforce. "America's workers and their families deserve better than they're getting from Walmart today-they deserve higher wages, less erratic schedules, and equal pay regardless of their gender. The courage of Walmart workers who are engaged in sit-down strikes to protest the company's illegal silencing of workers who have called for better jobs and full-time work is essential to creating real change."
At the Senate Health, Education, Labor and Pensions Committee briefing, Walmart workers discussed how Walmart's low pay, manipulation of scheduling and illegal threats to workers have created a new norm across industries that makes it nearly impossible for workers to hold down second jobs, arrange child care, go to school or manage health conditions.
"With Walmart's low-wages and hectic schedules, too many Walmart workers are left on the edge of poverty. But all too often when we stand up, Walmart tries to silence us. Just days before I planned to participate in our first sit-down strike in LA, Walmart fired me for speaking up for better wages and hours, but I'm still fighting today because my former colleagues like Fatmata Jabbie and Cantare Davunt deserve better," said Evelin Cruz, former Walmart employee and OUR Walmart member.
The briefing highlighted the Schedules That Work Act, Fair Minimum Wage Act and Paycheck Fairness Act-legislation that would force the company to improve its pay and hours for hundreds of thousands of American workers. Legislative experts including Carol Joyner of the Labor Project for Working Families, Amy Traub of Demos and Carrie Gleason of the Center for Popular Democracy joined the elected officials and Walmart associates on the panel to discuss the need for legislative action to set a new standard at the country's largest employer.
The action from elected officials comes as an increasing number of Americans and Walmart workers point to OUR Walmart as making significant changes at the country's largest retailer. Most recently, after public calls from OUR Walmart, the company committed to raise wages for its lowest paid workers and rolled out a new scheduling system that allows workers to sign up for open shifts. To date, workers at more than 2,100 Walmart stores nationwide have signed a petition calling on Walmart and the Waltons to publicly commit to paying $15 an hour and providing consistent, full-time hours.
"In three short years, OUR Walmart has grown to a powerful, national network that is making big changes at the country's largest employer," said Cantare Davunt, a Walmart customer service manager and OUR Walmart member during the briefing today."But more needs to be done. Legislative action would have a huge impact, but Walmart can lead the way now by adopting policies that give us the schedules and pay we need."
The briefing comes before next week's Black Friday nationwide strikes. Tens of thousands of workers, teachers, voters, clergy, environmentalists, and civil rights leaders will join workers at more than 1,600 protests, speaking out against retaliation and calling on Walmart and the Walton family to publicly commit to $15 an hour and provide full-time work.
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GOP pours nearly $1M into Arizona special election
Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in...
Activist Ady Barkan and New York Times columnist Michelle Goldberg discuss what’s been happening on the ground in Arizona, where the outcome of the special election in the 8th district is perhaps less important than the margin.
Watch the video here.
Mpls. Fed chief, activists talk about economic gap
The president of the Federal Reserve Bank of Minneapolis met with activists and northside residents Wednesday over...
The president of the Federal Reserve Bank of Minneapolis met with activists and northside residents Wednesday over racial and economic disparities.
Neel Kashkari talked with leaders from Neighborhoods Organizing for Change for an hour — an unusual meeting of a banking insider and a group known for street demonstrations and putting political pressure on the powers that be.
"A big part of my job is to get out and understand first hand what is happening, what are the challenges," said Kashkari who has served on the central bank system since January.
In that time, the former head of the federal government's bank bailout program in 2008 has drawn attention for his warning that failure of some big banks could lead to another financial crisis.
Kashkari said that the Fed's monetary policy can have an effect on unemployment, interest rates and inflation, but he said Congress' fiscal policy will also be key in addressing racial disparities.
Anthony Newby, executive director of Neighborhoods Organizing for Change, said they talked about the high unemployment rate among African-Americans.
"Now we can spend more time collaborating, doing a deeper dive and figure out what are the structural barriers and then what can the Fed do to bridge that gap," Newby said. "That's a big deal and big starting point."
Newby added he was pleased to have someone in Kashkari's position listening to real people struggling to make ends meet.
Kashkari agreed to meet with them again.
By PETER COX
Source
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.
Recommended Reading
Reuters: US regulators probe retailers' on-call scheduling
By Daphne Howland
Source
When It Comes to Jobs, Fed Up With the Fed
The News & Observer - March 5, 2015, by Kevin Rogers - When the monthly jobs numbers come out Friday, many...
The News & Observer - March 5, 2015, by Kevin Rogers - When the monthly jobs numbers come out Friday, many economists will say that the economy is healthy. Some will even say that wages are rising too fast and that steps need to be taken to slow economic growth. But out in the real world, working families and particularly communities of color are being left drastically behind in the recovery.
The disconnect between the rich and the rest of us is only widening, and that is a real problem when the rich are making the decisions for everyone. For higher wages and more robust employment growth, we don’t need to limit ourselves to the usual discussions and the typical solutions. Rather, we should look in a new direction, to the Federal Reserve, for the necessary policy changes that will usher in real growth on Main Street, not just on Wall Street.
Most people don’t pay much attention to what the Fed does and how it does it, but the reality is that the decisions the Fed makes affect us all, every day.
There are two important ways the Federal Reserve can help:
▪ Ensure a monetary policy that delivers genuine full employment and rising wages for all working families. Raising interest rates in 2015 would be a catastrophic mistake. The American economy needs to see significantly more wage growth, not less.
▪ Provide a more transparent and inclusive approach to policymaking and governance. The Fed needs to listen to the voices of working families, not just banks and mega corporations.
Rampant and uneven unemployment can be measured in numbers, but it means that real-life opportunities fall further out of reach for working parents and that doors close on our children. It means that families are feeling the strain, and disenfranchisement is getting worse.
Permitting the economy to speed up significantly offers only upsides. A new report by the Center for Popular Democracy and the Economic Policy Institute finds that until nominal wages are rising by 3.5 to 4 percent, there is no threat that price inflation will meaningfully exceed the Fed’s low 2 percent inflation target. And such wage growth is necessary for workers to begin to reap the benefits of economic growth and to achieve a genuine recovery from the Great Recession.
Indeed, during the past three decades, it was only in the late 1990s, when the Federal Reserve permitted economic growth to speed up and the labor market to tighten, that workers across the economic spectrum, and in communities of color, saw genuine wage improvements.
As was true then, the Fed is not an innocent bystander in our economy, but an active participant. And yet, despite the clear economic disparities among our communities, voices inside the Fed are now saying that the economy is healthy and that the Fed should tamp down growth so that wages stop rising so quickly.
Although the board members that govern the regional Federal Reserve banks are legally required to represent the broad interests of the public, they mostly represent the financial sector or large corporations – they live very different lives from us, and they don’t take our experiences to the boardroom.
The Fed’s decisions are distant from communities that struggle the most in this economy and simply do not reflect the full diversity of the public it is supposed to represent. This explains why board members have produced an economy that works for them. Millions of working families are left with little hope of a better life.
It is no wonder that supporters of higher wages and fuller employment from across the country are turning up the heat on out-of-touch policies and practices coming from the Fed. Regular families should not be shut out the Fed policymaking process. Instead, they should be at the very core of it.
Source
Read more here: http://www.newsobserver.com/opinion/op-ed/article12716264.html#storylink...Passenger with ALS Calls Out Sen. Jeff Flake on Tax Vote, DACA
Arizona Republican Senator Jeff Flake recently has been masquerading as a Republican with a heart, someone willing to...
Arizona Republican Senator Jeff Flake recently has been masquerading as a Republican with a heart, someone willing to stand up to Donald Trump and others in the GOP whose lack of principles is tearing the country apart.
Flake recently wrote a check for a whopping $100 to support Democratic Senate candidate Doug Jones in Alabama. He claims to have secured political promises from the Trump administration over DACA, which protects immigrants who came to the U.S. as children. (The White House denies there are any deals.)
Read the full article here.
Ana María Archila and Héctor Figueroa on Immigration Reform
Cuatro panelistas explican los logros y obstáculos de las marchas pro-inmigrantes de primero de mayo que llevan ya casi...
Cuatro panelistas explican los logros y obstáculos de las marchas pro-inmigrantes de primero de mayo que llevan ya casi una década. Visitan el programa Héctor Figueroa, presidente del sindicato 32BJ, la abogada, directora de la Coalición del Norte de Manhattan por los Derechos de los Inmigrantes Ángela Fernández, el pastor luterano Fabián Arias de la iglesia Sión y Ana María Archila, co-directora ejecutiva del Centro por la Democracia Popular.
CPD's Josie Duffy on Why NY Needs the Scaffold Law
NY1 - August 28, 2014 - CPD's Josie Duffy joins Liz Benjamin on NY1 to discuss why workers need the Scaffold Law.
NY1 - August 28, 2014 - CPD's Josie Duffy joins Liz Benjamin on NY1 to discuss why workers need the Scaffold Law.
3 days ago
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