America Has Become A Tyranny of the Few - But We Can Fight It
America Has Become A Tyranny of the Few - But We Can Fight It
We’re in the thick of the second post-Citizens United presidential campaign, and it’s already clear that allowing...
We’re in the thick of the second post-Citizens United presidential campaign, and it’s already clear that allowing unlimited funds to influence political elections was a terrible idea.
Half of the funds supporting presidential candidates from both parties comes from a mere 158 families — a miniscule percentage of America’s 120 million households — as documented by a recent New York Times investigation. Largely white, older, male, and Republican, they are also unrepresentative of what our multicultural society looks like.
As a result of this narrow group of donors controlling what’s on the political agenda, America has a fundamentally undemocratic system in which working class people and people of color are left on the margins, silenced in a political debate, they can’t gain access to — because they don’t have millions to share.
America has become a tyranny of the few, and Americans are fed up with the broken system. Last week, voters in Maine elected to increase funding from $2 million to $3 million for the Clean Elections Fund, which provides government grants to candidates who agree to limit their spending and private fundraising. It might be a long time before Citizens United is overturned. In the interim, it’s important that other states introduce similar legislation challenging existing financing models.
The tyranny of the few is two-pronged, however. Not only are our elected leaders being held accountable to wealthy donors instead of the people of our nation, the least privileged of this nation are simultaneously facing strong barriers to voting.
Our antiquated voter registration system results in roughly 62 million eligible voters not registered, either because they never registered or their registration information is incorrect. In a 2008 Current Population Survey, blacks and Latinos cited “difficulties with the registration process” as their main reason for not registering to vote. Whites disproportionately reported not registering because they were “not interested in elections or politics.” Barriers to voting registration are in many states especially well in place for people of color, workers and youth, who are targeted by voter suppression laws.
We could put an end to the error-ridden old-fashioned manual voter registration and step into the 21st century with automatic voter registration. Other states could follow the example set by California and Oregon, which are linking voter registration to the Department of Motor Vehicles. Through linking voter registration with public offices such as the DMV, revenue agencies, the Postal Service and others, the United States could secure over 56 million more voters, as a report from Center for Popular Democracy shows.
So to sum up: people of color and working class Americans aren’t just unable to place millions of dollars with politicians who will take care of them in Congress, they aren’t even able to vote for leaders who might serve their interests.
The outcome? Our America has become an oligarchy run by a tiny and overly privileged section of its population, whose lives and wishes for our nation are in stark opposition to the lives and dreams of the average American.
This is borne out in our legislation. Despite overwhelming public support for policies such as taxing those who earn more than $1 million a year, and laws that address inequality, workers’ rights, and protection of the middle class, we see the footprints of corporate powers all over our legislation.
We need to act fast by passing laws that disrupt this undemocratic cycle. We must break Congress’ dependency on big money and return the power to the people, but we can’t only rely on our lawmakers to change our nation.
It will take a lot of work, but we can’t allow for this undemocratic oligarchy to go on. Let’s not leave the future of our country in the hands of the wealthiest, let’s instead bring back democracy to our nation.
Source: Common Dreams
This Is Exactly How HIV Activists Disrupted Congress to Save Health Care
This Is Exactly How HIV Activists Disrupted Congress to Save Health Care
Late last month, thousands of Americans with HIV/AIDS -- many of them among the millions of Americans who rely on...
Late last month, thousands of Americans with HIV/AIDS -- many of them among the millions of Americans who rely on Medicaid or Affordable Care Act (ACA) plans for their health coverage -- saw the news and breathed yet one more major sigh of relief: GOP Senate leader Mitch McConnell announced that, lacking the votes needed to win, the Senate would not go forward on its final effort this year to kill the ACA (aka Obamacare) and take a devastating bite out of Medicaid.
Read the full article here.
Payday lenders must be stopped from preying on the poor: Guest commentary
Payday lenders must be stopped from preying on the poor: Guest commentary
Payday lending has come under attack in recent years for exploiting low-income borrowers and trapping them in a cycle...
Payday lending has come under attack in recent years for exploiting low-income borrowers and trapping them in a cycle of debt. The problem has grown to such an extent that last month, the Consumer Financial Protection Bureau proposed new rules to rein in the most egregious abuses by payday lenders.
Yet payday lenders are not alone in profiting from the struggles of low-income communities with deceptive loans that, all too often, send people into crushing debt. In fact, such targeting has grown common among industries ranging from student loan providers to mortgage lenders.
For decades, redlining denied black people and other communities of color access to mortgages, bank accounts and other important services. Today, black and brown women are similarly being “pinklined” with lending schemes that deny them the opportunity for a better life.
A recent report underlines the toll these practices have taken on women of color. Among other alarming statistics, the report shows that 6 out of 10 payday loan customers are women, that black women were 256 percent more likely than their white male counterparts to receive a subprime loan, and that women of color are stuck paying off student debt for far longer than men. It also shows that aggressive lending practices from payday lending to subprime mortgages have grown dramatically in recent years.
In Los Angeles, debt is a dark cloud looming over the lives of thousands of low-income women all over the city.
Barbara took over the mortgage for her family’s home in South Central Los Angeles in 1988. She had a good job working for Hughes Aircraft until she was injured on the job in 1999 and took an early retirement. To better care for an aging mother living with her, she took out a subprime loan for a bathroom renovation.
The interest rate on the new loan steadily climbed, until she could barely afford to make monthly payments. She took out credit cards just to stay afloat, burying her under an even higher mountain of debt. To survive, she asked her brother to move in, while her son also helped out with the bills.
Numerous studies have shown that borrowers with strong credit — especially black women and Latinas — were steered toward subprime loans even when they could qualify for those with lower rates.
Women of color pay a massive price for such recklessness. The stress of dealing with debt hurts women in a variety of ways.
Alexandra, a former military officer, lost her partner, the father to her daughter, after a protracted struggle with ballooning subprime loan payments. The credit card debt she needed to take out as a result threatened her health, leaving her with hair loss, neck pain and sleep deprivation. She eventually needed to file for bankruptcy to settle the debt.
Women of color are vulnerable to dubious lenders because structural racism and sexism already puts far too many women in economically vulnerable positions. The low-wage workforce is dominated by women, and the gender pay gap is significantly worse for women of color. Many women of color are forced to take out loans just to survive or to try to improve their desperate situations.
Predatory lending practices, and other corporate practices that deny communities opportunities and exploit the most economically vulnerable, have been allowed to proliferate for far too long. The Consumer Financial Protection Bureau began taking action on payday and car title loans last month, but more needs to be done.
Regulators must ensure all lending takes into account the borrower’s ability to repay, and that lenders do not disproportionately target and attempt to profit off of the least protected.
The payday lending rules acted on last month are a step in the right direction but don’t go nearly far enough. We have a lot of work ahead of us to ensure black and Latina women are not exploited by the 21st century version of redlining.
Marbre Stahly-Butts is deputy director of Racial Justice at the Center for Popular Democracy, of which Alliance of Californians for Community Empowerment is an affiliate.
By Marbre Stahly-Butts
Source
ABQ call center workers get more family-friendly workplace rules
More than workers at Albuquerque’s T-Mobile call center began working under new workplace rules this week. The company...
More than workers at Albuquerque’s T-Mobile call center began working under new workplace rules this week. The company has been under increasing pressure to modify work rules to give workers greater flexibility to balance family and work requirements.
The company operates a nationwide call center near Jefferson and Menaul in Albuquerque and recently announced plans to add more employees top the more than 1,500 local workers already employed at the site.
News of the new workplace rules came from the Communications Workers of America which has been leading efforts with local organizations for these changes:
For Immediate Release July 2, 2015
Public Pressure Pushes T-Mobile US to Provide Fairer Paid Parental Leave Policy
WASHINGTON, D.C. – Responding to growing public pressure and local government initiatives, T-Mobile US announced this week that it would be adopt a paid parental leave program. The company also said it would end an oppressive policy that required call center workers to be on the phone 96.5% of their work time, leaving them with virtually no time for follow up on customer issues or to make changes in customers’ accounts as needed.
This is great news for workers who often must struggle to balance family and career. It comes as workers at T-Mobile US and a coalition of community supporters in cities like Albuquerque, N.M., step up efforts to restore a fair workweek and achieve other improvements for workers.
Members of TU, the union of T-Mobile workers, the Communications Workers of America and many organizations, including the Center for Popular Democracy, OLÉ and other coalition partners, have been raising concerns about unfair scheduling and other issues for workers at T-Mobile US and other employers. Workers want a voice in the decisions that affect them in their workplace — not just the ones that the company selectively picks and chooses. That’s why T-Mobile US workers are joining TU.
T-Mobile US’s initial scheduling changes were made just as the Albuquerque City Council was moving forward to consider a proposal to implement paid sick leave and scheduling improvements. The Albuquerque coalition hosted a town hall meeting on irregular scheduling, where Albuquerque City Council members pledged to support their fight for a fair workweek including the right to take sick leave without retaliation.
A recent National Labor Relations Board (NLRB) decision found T-Mobile guilty of engaging in illegal employment policies that prevented workers from even talking to each other about problems on the job. The judge ordered the company to rescind those policies and inform all 46,000 employees about the verdict.
Parental leave is a good first step toward helping workers balance their career and family responsibilities. But workers want real bargaining rights and the right to fairly choose union representation. That’s what T-Mobile must realize.
Source: The New Mexico Political Report
"You Can Save My Life": Traveling on Same Plane, Man With ALS Confronts Sen. Flake Over GOP Tax Bill
"You Can Save My Life": Traveling on Same Plane, Man With ALS Confronts Sen. Flake Over GOP Tax Bill
Sen. Jeff Flake (R-Ariz.) boarded a plane leaving Washington, D.C. on Thursday, less than a week after voting for a tax...
Sen. Jeff Flake (R-Ariz.) boarded a plane leaving Washington, D.C. on Thursday, less than a week after voting for a tax bill that could result in devastating cuts to disability programs.
Ady Barkan, a 33-year-old father living with amyotrophic lateral sclerosis (ALS), boarded the same flight after spending several days protesting the very legislation Flake helped ram through the Senate.
Read the full article here.
Toys `R' Us Workers Go to Congress to Seek Curbs on Buyout Firms
Toys `R' Us Workers Go to Congress to Seek Curbs on Buyout Firms
“We need to fight for all workers who are being treated like the Toys ‘R’ Us employees, who are bearing the personal...
“We need to fight for all workers who are being treated like the Toys ‘R’ Us employees, who are bearing the personal economic costs of corporate greed run amok,” Senator Gillibrand said on Tuesday in a meeting organized by Rise Up Retail and the Center for Popular Democracy, which represent retail workers. “I will keep doing everything I can in the Senate to make that happen.”
Read the full article here.
Exposing the Charter School Lie: Michelle Rhee, Louis C.K. and the Year Phony Education Reform Revealed its True Colors
Salon - January 1, 2015, by Jeff Bryant - Since it’s the time of the year when newspapers, websites and television talk...
Salon - January 1, 2015, by Jeff Bryant - Since it’s the time of the year when newspapers, websites and television talk shows scan their archives to pick the person, place or thing that sums up the year in entertainment, business, sports or every other venue, why not do that for education too?
In 2014 education news, lots of personalities came and went.
Michelle Rhee gave way to Campbell Brown as a torchbearer for “reform.” The comedian Louis C. K. had a turn at becoming an education wonk with his commentary on the Common Core standards. Numerous “Chiefs for Change” toppled from the ranks of chiefdom. Pennsylvania Gov. Tom Corbett went down in defeat due in part to his gutting of public schools, as Wisconsin Gov. Scott Walker remained resilient while spreading the cancerous voucher program from Milwaukee to the rest of the state.
New York Mayor Bill de Blasio rose to turn back the failed education reforms of ex-Mayor Michael Bloomberg, only to have his populist agenda blocked by New York Gov. Andrew Cuomo who insisted on imposing policies favored by Wall Street. Progressives formed Democrats for Public Education to counter the neoliberal, big money clout of Democrats for Education Reform. And Kentucky Sen. Rand Paul and former Florida Gov. Jeb Bush emerged as rival voices in the ongoing debate about the Common Core among potential Republican presidential candidates.
But hogging the camera throughout the year was another notable character: charter school scandals.
In 2014, charter schools, which had always been marketed for a legendary ability to deliver promising new innovations for education, became known primarily for their ability to concoct innovative new scams.
From Local Stories to National Scandal
Troubling news stories about the financial workings of charter schools had been leaking slowly into the media stream for some years.
A story that appeared at Forbes in late 2013 foretold a lot of what would emerge in 2014. That post “Charter School Gravy Train Runs Express to Fat City” brought to light for the first time in a mainstream source the financial rewards that were being mined from charter schools. As author Addison Wiggin explained, a mixture of tax incentives, government programs and Wall Street investors eager to make money were coming together to deliver a charter school bonanza – especially if the charter operation could “escape scrutiny” behind the veil of being privately held or if the charter operation could mix its business in “with other ventures that have nothing to do with education.”
As 2014 began, more stories about charter schools scandals continued to drip out from local press outlets – a chain of charter schools teaching creationism, a charter school closing abruptly for mysterious reasons, a charter high school operating as a for-profit “basketball factory,” recruiting players from around the world while delivering a sub-par education.
Here and there, stories emerged: a charter school trying to open up inside the walls of a gated community while a closed one continued to get more than $2 million in taxpayer funds. Stories about charter operators being found guilty of embezzling thousands of taxpayer dollars turned into other stories about operators stealing even more thousands of dollars, which turned into even more stories about operators stealing over a million dollars.
While some charter schools schemed to steer huge percentages of their money away from instruction toward management salaries and property leases (to firms connected to the charter owners, of course), others worked the system to make sure fewer students with special needs were in their classrooms.
Then the steady drip-drip from local news sources turned into a fire hose in May when a blockbuster report released by Integrity in Education and the Center for Popular Democracy revealed, “Fraudulent charter operators in 15 states are responsible for losing, misusing, or wasting over $100 million in taxpayer money.”
The report, “Charter School Vulnerabilities to Waste, Fraud And Abuse,” combed through news stories, criminal records and other documents to find hundreds of cases of charter school operators embezzling funds, using tax dollars to illegally support other, non-educational businesses, taking public dollars for services they didn’t provide, inflating their enrollment numbers to boost revenues, and putting children in potential danger by forgoing safety regulations or withholding services.
The report made charter school scandals a nationwide story and received in-depth coverage at Salon, “Bill Moyers and Company,” the Washington Post and the Nation.
A Summer of Scams
Charter schools scandals continued to break throughout the summer.
In Ohio, report after report continued to reveal how popular charter school chains like White Hat Management had sky-high dropout rates while they poured public money into advertising campaigns and executive pay.
In Pennsylvania, a report found exorbitant costs associated with charter school operations and lavish CEO salaries and bonuses for charter school operators despite vastly underperforming the state’s traditional public schools. Another report revealed how Pennsylvania charters had gamed the system for special education funding, resulting in annual profits of $200 million to the schools.
In Michigan, a series by the Detroit Free Press found charter schools with “wasteful spending and double-dipping. Board members, school founders and employees steering lucrative deals to themselves or insiders. Schools allowed to operate for years despite poor academic records.”
In Florida, an investigation by the Orlando Sun Sentinel found, “Unchecked charter-school operators are exploiting South Florida’s public school system, collecting taxpayer dollars for schools that quickly shut down.”
Another Florida local news outlet investigating charter school operations found millions of taxpayer dollars misdirected from classrooms and students to management companies. The report pointed to charter school chain Charter Schools USA that uses tax-exempt bonds to build schools that it then rents to UCSA-affiliated schools. Then the CUSA schools are saddled with rent payments back to CUSA and its management company at rates considerably higher than those charged to other non-CUSA schools in the area.
Still more news stories came out about charter schools related to the largest bricks-and-mortar charter-school chain in the United States run by the secretive Turkish cleric Fethullah Gülen, who lives in exile from Turkey in rural Pennsylvania. The Chicago Sun-Times reported that Chicago-area Concept Schools, part of the Gulen charter chain, were subjects of an ongoing federal investigation. The enquiry is about nearly $1 million that has been paid to contractors all with ties to the Gülen network.
Articles from the Washington Post found District of Columbia charter school operators evading rules to pocket millions in taxpayer dollars and charter schools pumping public money into for-profit management companies.
A report in the Arizona Republic found board members and administrators from more than a dozen charter schools “profiting from their affiliations by doing business with schools they oversee.”
The rash of summer charter scandal stories resonated in news outlets across the country.
Then to cap off the summer of charter scandals, the Progressive reported an upsurge in FBI raids on charter schools all over the country. “From Pittsburgh to Baton Rouge, from Hartford to Cincinnati to Albuquerque, FBI agents have been busting into schools, carting off documents, and making arrests leading to high-profile indictments.”
Reporter Ruth Conniff found charter schools allegations range from “taking money that was meant for the classroom,” to spending taxpayer dollars on “luxuries such as fine-dining and retreats at exclusive resorts and spas,” to engaging in “bribes and kickbacks.”
Back to Schools for Scandal
As back-to-school season rolled out, charter schools scandals broke harder and heavier.
The Center for Popular Democracy, Integrity in Education and ACTION United published a continuation of their charter schools study with a new report that disclosed charter school officials in Pennsylvania had defrauded at least $30 million intended for schoolchildren since 1997.
Startling examples of charter school financial malfeasance revealed by the authors included an administrator who diverted $2.6 million in school funds to a church property he also operated. Another charter school chief was caught spending millions in school funds to bail out other nonprofits associated with the school. A pair of charter school operators stole more than $900,000 from the school by using fraudulent invoices, and a cyberschool entrepreneur diverted $8 million of school funds for houses, a Florida condominium and an airplane.
Then, in November, the Center for Popular Democracy, with the Alliance for Quality Education, submitted yet another continuation of its analysis of charter school financial fraud, this time finding as much as $54 million in suspected charter school fraud in New York state.
Specific examples from the report included a New York City charter that issued credit cards to its executives allowing them to charge more than $75,000 in less than two years, a Long Island charter that paid vendors over half a million dollars without competitive bids, an Albany charter that lost between $207,000 to $2.3 million by purchasing a site for its elementary school rather than leasing it, a Rochester charter that awarded contracts to board members, relatives and other related parties rather than get competitive bids, and a Buffalo charter with a leasing arrangement that paid more than $5 million to a building company at a 20 percent interest rate.
A write-up of the report in the New York Daily News noted CPD “investigators uncovered probable financial mismanagement in 95 percent of the [charter] schools they examined.”
More recently, a widely circulated report from progressive news outlet ProPublica revealed how charter schools increasingly use arrangements known as “sweeps” contracts to send nearly all of a school’s public dollars – anywhere from 95 to 100 percent — into for-profit charter-management companies.
Reporter Marian Wang wrote, “The contracts are an example of how the charter schools sometimes cede control of public dollars to private companies that have no legal obligation to act in the best interests of the schools or taxpayers … it can be hard for regulators and even schools themselves to follow the money when nearly all of it goes into the accounts of a private company.”
The New Face of Charter Schools
In their defense, charter school advocates object to the negative portrayals of their operations by claiming the reports cherry-pick bad actors from the broad population of charters. But this year’s avalanche of malfeasance should dispel any argument about cherry-picking.
For sure there are examples of charter schools that are doing an excellent job of educating students. But rapid growth in the industry continues to come from charter operators who are not willing to run their operations like these successful charters because it doesn’t suit their “business model.”
Further, would a public school advocate defend public schools by countering, “But look at this good one over here”? They would be mocked and derided by charter school proponents.
Advocates for charter schools also defend the explosion in charter schools scandals by pointing to scandals in a public school and contending, “Look, they do it too.” Indeed, there are instances of financial and other types of scandals in public schools. That’s why they are heavily regulated. Yet charter school backers continue to fight regulations, contribute big money to political candidates who promise a hands-off approach to their schools, and use powerful lobbying firms to coerce legislators to continue unregulated charter governance.
Charter school defenders also argue that these widespread scandals will be remedied by the “market” – that the inevitable “bad” charters will get closed while only the “good” ones remain. It’s true that charter school closures are becoming more commonplace, but charter operators often resist closures – even calling on parents to rally to their cause and appeal to local authorities. Charter schools that close abruptly leave schoolchildren and families in the lurch and severely interrupt the students’ learning. Operators of closed charters often flee the scene to practice their malfeasance elsewhere, taking with them the supplies and materials they obtained at taxpayer expense. Meanwhile, enormous sums of precious public money are wasted – with no apparent education benefit – all for the sake of this “market churn.”
As a result of the flood of charter schools scandals, public attitudes about these schools are bound to change.
Surveys show the public generally doesn’t get what charter schools are and don’t understand whether they are private or public or whether they can charge fees or teach religion. Charter operators themselves have muddled their image by arguing successfully in numerous confrontations with legal authorities that “they are exempt from rules that govern traditional public schools, ranging from labor laws to constitutional protections for students.”
But a recent poll in Michigan, a state where rampant charter fraud has been well publicized, found that 73 percent of responders say they want a moratorium on the creation of new charter schools. In many communities, announcements about new charter operations opening up have been greeted with outspoken public protests as we’ve seen in in Nashville; York, Pennsylvania; and Camden, New Jersey.
Forecasts about what 2015 will bring to the education landscape frequently foresee more charter schools as charter-friendly lawmakers continue to act witlessly to proliferate these schools. But make no mistake, the charter school scandals of 2014 forever altered the narrative about what these institutions really bring to the populace.
Source
Who’s running our schools anyway?
After reading about Gov. Walker’s plan to close some Green Bay public schools and replace them with charters, I’m...
After reading about Gov. Walker’s plan to close some Green Bay public schools and replace them with charters, I’m beginning to believe the takeover of our public schools by big business and legislators like Walker is proceeding very well.
They say our public schools are failing. That’s not fully true. Some are, but it’s because of poverty. We don’t fund them adequately to overcome student poverty-related problems.
No Child Left Behind, Race to the Top, and Common Core were composed and implemented by Bill Gates and other member of the 1 percent without input from parents, teachers of early childhood students and early education experts.
The educational expectations, of especially very young children, are causing children great stress, enough to make them throw up, cry and get sick. The standardized testing by Pearson (a British multinational corporation) is a hoax. It has no background in education or teaching children. Its record of mistakes in the test questions, correcting tests, and delivering them on time is dismal.
I remember in the ’70s standardized testing was dropped all over the country because the tests were considered an inaccurate method of measuring the whole learning process. They basically measure memorization. Now they’re back and they’re quick, inaccurate and expensive.
The complaint of parents, teachers, children and administrators are growing louder because of excessive homework. Health care professionals are saying the stress of overburdening students causing sleeping problems is unhealthy. The curriculum being used now relies on demand-and-push as a method of teaching. I call it abusive because that method doesn’t respect the personhood of the student who becomes a yes person, not a creator.
In my teaching experience, I found children love to learn if they are presented with material they are mentally, physically and developmentally ready for.
We had a school in De Pere called the Wisconsin International School. It left with very little notice to parents and children. Teachers were out paychecks. A friend lost nearly $1,000 she paid as a retainer fee for the next year. They are suing but to little avail.
A year ago, the Center for Popular Democracy issued a report demonstrating “charter schools in 15 states ... had experienced over $100 million in reported fraud, waste, abuse and mismanagement. Now there are millions of new alleged and confirmed cases of financial waste, fraud, and mismanagement reported.”
But we don’t yet have the necessary law to protect us from dishonesty in charter schools. How come?
Sen. Dave Hansen said, “Wisconsin taxpayers cannot afford to pay for two systems, much less a system of private schools that are not held accountable for providing their students quality education.”
We need our public schools to care for all our students. Finland, a world leader in education, manages it with great success.
Peggy Burns of Green Bay has a bachelor’s degree in kindergarten-primary education, a master’s degree in elementary eduction and 24 graduate credits in early childhood/educational exceptional needs.
Source: Green Bay Press Gazette
Taking on the Private Prison Industry’s Corporate Backers
Taking on the Private Prison Industry’s Corporate Backers
Activists are trying to combat both the accelerated tracking and detaining of immigrants and the use of for-profit...
Activists are trying to combat both the accelerated tracking and detaining of immigrants and the use of for-profit prisons to hold them by targeting the big banks that prop up for-profit prison companies.
Read the full article here.
The Spy Who Fired Me
Harpers Magazine - March 2015, by Esther Kaplan - Last March, Jim Cramer, the host of CNBC’s Mad Money, devoted part of...
Harpers Magazine - March 2015, by Esther Kaplan - Last March, Jim Cramer, the host of CNBC’s Mad Money, devoted part of his show to a company called Cornerstone OnDemand. Cornerstone, Cramer shouted at the camera, is “a cloud-based-software-as-a-service play” in the “talent-management” field. Companies that use its platform can quickly assess an employee’s performance by analyzing his or her online interactions, including emails, instant messages, and Web use. “We’ve been managing people exactly the same way for the last hundred and fifty years,” Cornerstone’s CEO, Adam Miller, told Cramer. With the rise of the global workforce, the remote workforce, the smartphone and the tablet, it’s time to “manage people differently.” Clients include Virgin Media, Barclays, and Starwood Hotels.
Cornerstone, as Miller likes to tell investors, is positioning itself to be “on the vanguard of big data in the cloud” and a leader in the “gamification of performance management.” To be assessed by Cornerstone is to have your collaborative partnerships scored as assets and your brainstorms rewarded with electronic badges (genius idea!). It is to have scads of information swept up about what you do each day, whom you communicate with, and what you communicate about. Cornerstone converts that data into metrics to be factored in to your performance reviews and decisions about how much you’ll be paid.
Miller’s company is part of an $11 billion industry that also includes workforcemanagement systems such as Kronos and “enterprise social” platforms such as Microsoft’s Yammer, Salesforce’s Chatter, and, soon, Facebook at Work. Every aspect of an office worker’s life can now be measured, and an increasing number of corporations and institutions—from cosmetics companies to car-rental agencies—are using that informationto make hiring and firing decisions. Cramer, for one, is bullish on the idea: investing in companies like Cornerstone, he said, “can make you boatloads of money literally year after year!”
A survey from the American Management Association found that 66 percent of employers monitor the Internet use of their employees, 45 percent track employee keystrokes, and 43 percent monitor employee email. Only two states, Delaware and Connecticut, require companies to inform their employees that such monitoring is taking place. According to Marc Smith, a sociologist with the Social Media Research Foundation, “Anythingyou do with a piece of hardware that’s provided to you by the employer, every keystroke, is the property of the employer. Personal calls, private photos—if you put it on the company laptop, your company owns it. They may analyze any electronic record at any time for any purpose. It’s not your data.”
With the advent of wireless connectivity, along with a steep drop in the price of computer processors, electronic sensors, GPS devices, and radio-frequency identification tags, monitoring has become commonplace.Many retail workers now clock in with a thumb scan. Nurses wear badges that track how often they wash their hands. Warehouse workers carry devices that assign them their next task and give them a time by which they must complete it. Some may soon be outfitted with augmented-reality devices to more efficiently locate products.
In industry after industry, this data collection is part of an expensive, high-tech effort to squeeze every last drop of productivity from corporate workforces, an effort that pushes employees to their mental, emotional, and physical limits; claims control over their working and nonworking hours; and compensates them as little as possible, even at the risk of violating labor laws. In some cases, these new systems produce impressive results for the bottom line: after Unified Grocers, a large wholesaler, implemented an electronic tasking system for its warehouse workers, the firm was able to cut payroll expenses by 25 percent while increasing sales by 36 percent. A 2013 study of five chain restaurants found that electronic monitoring decreased employee theft and increased hourly sales. In other cases, however, the return on investment isn’t so clear. As one Cornerstonereport says of corporate social-networking tools.“ There is no generally accepted model for their implementation or standard set of metrics for measuring R.O.I.” Yet this has hardly slowed adoption.
Read the full article here.
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