100 groups call for Climate Investment Funds to sunset
100 groups call for Climate Investment Funds to sunset
Ahead of this week's meeting of the trust funds of the World Bank’s Climate Investment Funds, 100 groups have called...
Ahead of this week's meeting of the trust funds of the World Bank’s Climate Investment Funds, 100 groups have called for the CIFs to finally sunset, now that the Green Climate Fund is clearly operational. Two-thirds of the groups are from developing countries.
Here's the letter.
June 14, 2016
Dear Trust Fund Committee Members of the Strategic Climate Fund and Clean Technology Fund:
Now that it has approved projects and is beginning to disburse money, the Green Climate Fund is clearly operational. It is thus also unambiguously clear that it is time for the World Bank’s Climate Investment Funds to sunset.
Since their inception, the CIFs were meant to be interim funds. In 2008, the sunset clauses of the Strategic Climate Fund and the Clean Technology Fund said, “…the SCF will take necessary steps to conclude its operations once a new [UNFCCC] financial architecture is effective…” and “the CTF will take necessary steps to conclude its operations once a new [UNFCCC] financial architecture is effective.”[1] That new financial architecture – the Green Climate Fund – is now indisputably effective. The CIFs’ raison d'etre has expired; attempts to reinterpret the obvious must cease.
Unlike the multilateral development bank-driven CIFs, the GCF was set up according to the principles of the United Nations Framework Convention on Climate Change. With a governance structure evenly split between developed and developing countries, the GCF is founded on a “country-driven approach” accountable to the institutions and people in developing countries, and has placed a premium on direct access to funds by developing country entities. The GCF promotes a gender-sensitive approach to its funding – the first climate fund to do so from the outset of its activities.
While lessons learned from the CIFs should be applied to the GCF, efforts to spin the CIFs as complementary to the GCF are disingenuous. Resources directed toward the CIFs are resources that should instead be directed to the GCF. Any effort to raise new sources of finance for the CIFs should cease immediately, and there should be no new investments.
Thank you for your consideration.
Sincerely,
11.11.11-Coalition of the Flemish North-South Movement, Belgium
ActionAid International
Aksi for Gender, Social and Ecological Justice, Indonesia
All Nepal Peasants Federation, Nepal
All Nepal Women’s Association, Nepal
Alliance Sud, Switzerland
Alyansa Tigil Mina (Alliance Against Mining), Philippines
Aniban ng Manggagawa sa Agrikultura, Philippines
Asia Pacific Forum on Women, Law and Development, Thailand
Asian Peoples Movement on Debt and Development, Regional
ATTAC Japan
BankTrack, Netherlands
Beyond Beijing Committee, Nepal
Both ENDS, Netherlands
Bretton Woods Project, United Kingdom
Bukluran ng Manggagawang Pilipino, Philippines
Campaign for Climate Justice, Nepal
Carbon Market Watch, Belgium
Center for Biological Diversity, United States
Center for Environment, Bosnia and Herzegovina
Center for Popular Democracy, United States
Center for Socio-Economic Research and Development, Nepal
Centre for 21st century Issues (C21st), Nigeria
Centre for Social Impact Studies, Ghana
Centre pour l'Environnement et le Développement, Cameroon
Centro Humboldt, Nicaragua
Centro Salvadoreño de Tecnologia Apropiada/Friends of the Earth El Salvador
Christian Aid, United Kingdom
Civic Concern Nepal
Climate Action Network Europe, Regional
Climate Change & Development NGO Alliance, Azerbaijan
Climate Finance Group for Latin America and the Caribbean (GFLAC), Mexico
CNCD-11.11.11, Belgium
Consumers Protection Association, Lesotho
Digo Bikas Institute, Nepal
Ecological Christian Organisation, Uganda
Ecological Society of the Philippines
Environics Trust, India
Farmers Forum South Asia, Regional
Finance & Trade Watch, Austria
Food & Water Watch, United States
Foundation HELP, Tanzania
Freedom from Debt Coalition, Philippines
Friends of the Earth - England, Wales and Northern Ireland
Friends of the Earth United States
Gender Action, United States
Global Catholic Climate Movement Pilipinas, Philippines
Green Development Advocates, Cameroon
Haburas Foundation/ Friends of the Earth Timor Leste
Heinrich Böll Stiftung North America
Himalaya Niti Abhiyan, India
Human Rights Alliance Nepal
Indian Social Action Forum, India
Indigenous Environmental Network, United States/International
Institute for Agriculture and Trade Policy, United States
Institute for Policy Studies, Climate Policy Program, United States
Interamerican Association for Environmental Defense (AIDA), Regional
International.Lawyers.Org, Switzerland
Jagaran Nepal
Jamaa Resource Initiatives, Kenya
Jeunes Volontaires pour l'Environnement, Niger
Kitanglad Integrated NGOs, Inc., Philippines
Korea Federation for Environmental Movements, South Korea
KRuHA – Peoples Coalition on Water, Indonesia
Labour, Health and Human Rights Development Centre, Nigeria
LDC Watch, International
Leads Nigeria
Les Amis de la Terre France
Migrant Forum in Asia, Regional
National Coastal Women's Movement, India
National Hawkers Federation, India
National Women Peasants Association, Nepal
Nepal Youth Peasants Association, Nepal
Nigerian Conservation Foundation, Nigeria
NOAH Friends of the Earth Denmark
PALAG Mindanao, Philippines
Panay Rural Development Center, Inc., Philippines
Philippine Movement for Climate Justice, Philippines
Philippine Network for Rural Development and Democratization, Philippines
Policy Analysis and Research Institute of Lesotho
Population, Health, Environment Ethiopia Consortium, Ethiopia
Practical Action, United Kingdom
Reacción Climática, Bolivia
River Basin Friends, India
Rural Reconstruction Nepal
Sahabat Alam Malaysia/Friends of the Earth Malaysia
Sanlakas Philippines
Solidaritas Perempuan, Indonesia
South Asia Alliance for Poverty Eradication, Regional
South Asia Food Sovereignty Network, Regional
South Asia Peasants Coalition, Regional
Southern Oregon Climate Action Now, United States
Students for a Just and Stable Future, United States
SustainUS, United States
Third World Network, Malaysia
Trade Union Policy Institute of Nepal
VOICE Bangladesh
WomanHealth Philippines
Women Welfare Society, Nepal
Worldview-The Gambia
By Karen Orenstein
Source
Unpredictable Work Schedules: As Companies Shave Costs With Just-In-Time Scheduling, Workers, Regulators Fight Back
Unpredictable Work Schedules: As Companies Shave Costs With Just-In-Time Scheduling, Workers, Regulators Fight Back
Brianna Roy-Rankin, 23, is just the kind of worker Target would like to retain and promote. She says she loved her job...
Brianna Roy-Rankin, 23, is just the kind of worker Target would like to retain and promote. She says she loved her job at the retailer's store in Champaign, Illinois. She had great bosses, got along well with her co-workers and enjoyed the employee discounts. But last week, after two years as a sales associate, Roy-Rankin quit her job.
“I couldn’t really plan. I was at the mercy of the scheduling system,” she says. “Otherwise, I honestly, probably, would’ve stayed.”
Roy-Rankin went to college nearby, at the University of Illinois. Before she graduated in May, she says it was a constant challenge to balance her studies and social life with her part-time job -- usually around 20 hours a week at just under $10 an hour.
Target has an unforgiving scheduling system. Roy-Rankin says she would have to submit requests to take time off for spring break or visit her parents weeks, if not months in advance -- otherwise she’d be slotted to work without recourse. She would learn about her weekly work schedule three weeks in advance, which wasn’t too bad. But then her hours would fluctuate drastically. One week, she’d be scheduled for a 8 a.m.-to-noon shift on a particular day; the next, it might be a 5 p.m.-to-11 p.m. closing shift. Eventually, it became too much to juggle.
Roy-Rankin's situation is hardly unique.
A Common Trend
Nearly three in 10 hourly workers in the United States say they rarely get consistent work schedules, according to a study released Tuesday by WorkJam, a firm that specializes in workforce scheduling technology.
What’s more, an astounding 56 percent say they get their schedules a week or less in advance. Both trends run rampant in the fast-growing service sector, especially in low-wage fields like retail and fast food. And while policies of this sort save companies money by allowing them to tailor schedules to an expected flow of customer traffic, workers say it's the source of headaches.
Joshua Ostrega, chief operating officer and co-founder of WorkJam, admits the 56 percent figure came as a bit of a shock. “I think it’s extremely high,” he says. “We were actually quite surprised.”
Workers Employed in the Retail Trade Industries (Seasonally Adjusted) | FindTheData
An especially harsh practice among retailers is what’s known as just-in-time or on-call scheduling. Under this system, workers are required to be “on call” to come in and work on a particular day even if they’re not scheduled to do so.
The industry’s profit margins are tight, says Ostrega, and companies are looking to extract savings however they can. Software-based scheduling systems do the trick by linking labor supply to consumer demand. When store traffic is low, the system calls for fewer employees; when the system projects more patrons, it demands more workers. Employers like it because it keeps them from racking up unnecessary labor costs.
Now, unpredictable scheduling is increasingly drawing the interest of public authorities.
'The Pressure's Mounting'
In April, New York Attorney General Eric Schneiderman sent letters to major retailers that inquired about their on-call scheduling and asked whether their policies violated state law. Like seven other states and the District of Columbia, New York has so-called reporting-time laws that require employees to be paid when they report to work, even if no work is provided.
Since the letters went out, a number of high-profile companies have announced changes to their policies. The Gap and Abercrombie & Fitch, which both received the notices, said they would end the practice of on-call scheduling. And Starbucks promised last year to provide more consistent scheduling to baristas. But as a recent story in the New York Times revealed, the cafe chain has failed to do so.
Robert Hiltonsmith, senior policy analyst at Demos, a progressive think tank, expects the positive trends to continue -- even if Tuesday’s survey suggests employers overall aren’t relenting on tough and irregular scheduling demands. “I think it’s a slow burn, but the pressure’s mounting,” he says.
It’s in part a question of economic self-interest, Hiltonsmith says. Burned-out workers tend to quit their jobs fairly quickly, and high turnover is expensive. That’s one of the reasons why Walmart, the nation’s largest private-sector employer, and its top competitors voluntarily hiked wages earlier this year, according to Hiltonsmith. In fact, when Walmart announced it was boosting starting pay to at least $9 an hour, it also promised to notify workers of their schedules at least two and a half weeks in advance.
Reforms like this and others -- shifts that are scheduled the same time every week -- could prevent retailers from losing employees like Roy-Rankin, the kind of people who are otherwise content at work.
There’s also mounting political pressure, which stems from growing public concern over the livelihood of service-sector workers. Hiltonsmith attributes this to the “seismic shifts in the labor force” -- the decades-long decline of manufacturing and growth in service-sector employment.
Contrary to the popular image, retail workers are not teenagers looking to make a quick buck. The median age of a retail trade employee is 38, according to the federal Bureau of Labor Statistics.
“I think people had less concern when it wasn’t people trying to support their families,” Hiltonsmith says. “For better or worse, the service economy is the economy of the country’s future.”
Source: International Business Times
NY furioso con plan tributario aprobado por el Senado
NY furioso con plan tributario aprobado por el Senado
Las principales autoridades y activistas de Nueva York rechazaron este sábado el plan tributario aprobado en la...
Las principales autoridades y activistas de Nueva York rechazaron este sábado el plan tributario aprobado en la madrugada por el Senado federal que deberá ser armonizado con el de la Cámara Baja antes de llegar al despacho del presidente Donald Trump.
“Los republicanos han votado por un plan que ni siquiera tuvieron tiempo de leer. Una vez más probaron que les importan más sus donantes de campaña que las familias trabajadoras”, indicó el alcalde Bill de Blasio en un comunicado tras agregar que esta votación significa un incremento de impuestos para 87 millones de familias.
Lea el artículo completo aquí.
The United Cities of America: What Seattle's Minimum-Wage Deal Means
The Atlantic - May 2, 2014, by Eric Liu - On Wednesday, a Senate...
The Atlantic - May 2, 2014, by Eric Liu - On Wednesday, a Senate filibuster blocked President Obama’s proposal to raise the federal minimum wage to $10.10. Then on Thursday, Mayor Ed Murray of Seattle announced a business-labor deal to raise the city minimum wage to $15.
Procedurally, these two things had nothing to do with each other. Substantively, Seattle’s action is a direct result of the Senate’s inaction—and it portends the acceleration of two trends in public policy today: a growing willingness to reckon with radical inequality and wage stagnation, and the emergence of networked localism as a strategy for political action.
Let’s first unpack what happened in Seattle. The mayor appointed a committee of citizens to develop a proposal for $15. I was a member of that task force, which included union leaders and businesspeople and nonprofit heads and chamber-of-commerce chiefs. We gathered data. We commissioned studies. We held a big public symposium. Negotiations were complex and often heated and the committee missed its deadline, but we eventually got a deal that won the support of 21 of 24 members.
The grassroots “$15 Now” activists who helped propel a socialist to the city council and helped put this issue on the map last year are unsatisfied with the number of years and the accommodations. They aim to go to the ballot directly with a plan that’s closer to, well, $15 now. And the city council still must vote to enact this or any plan, and may come under pressure to amend it many ways.
The deal is nobody’s picture of perfect. It’s a compromise. It phases in minimum-wage hikes so that an employer has to get to $15 in three years (for businesses with more than 500 employees), four years (same, but offering healthcare), or seven years (for businesses with fewer than 500). The under-500 businesses also get several years to count a portion of worker tips and healthcare toward the wage requirements.
But pull back from the substantive details and the process hoops ahead. This is, as the vice president might say, a big f-ing deal. It’s not just the $15 figure, which sets the floor higher than in any other city or state. It’s the fact that a broad coalition with significant business support made it happen.
That makes this deal a model for other cities—and further evidence that norms are changing. It suggests that it’s becoming less acceptable in America to run a business in a way that relies on poverty wages. It’s becoming less acceptable to suggest that the go-to remedy for the pain of working people should be tax cuts for the wealthy. And though a minimum-wage increase is not an innovative tool, its revival is part of a widening repertoire of policy ideas for closing the opportunity gap.
We brought in leaders and experts from Chicago, Philadelphia, San Francisco, New York—all cities that have raised the wage or taken steps to.
Perhaps more significantly, Seattle’s action shows we’re entering a new age of bypass. Washington is stuck and will be for the foreseeable future. So it falls increasingly to cities to act—and in increasingly coordinated ways. As the Seattle task force explored possible pathways to $15, we brought in elected leaders and experts from San Jose, Chicago, Philadelphia, San Francisco, New York, all cities that have raised the wage or taken steps to. We all shared tactics, policy proposals, lessons, and language.
Groups like Local Progress have emerged to link up politicians and policy entrepreneurs from disparate cities, not just on wages but also on criminal-justice reform, immigrant rights, voting rights, climate change, and other issues. The cities of the United States are beginning to web up into an archipelago of policy experimentation and problem-solving.
This networked localism is distinct from the mere downward distribution of national political dollars to local campaigns. It’s also distinct from the Koch brothers’ strategy of creating wholly owned political subsidiaries in small towns to push agendas. And it’s not just about having mayors who are skillful, important as that is. Networked localism is a form of citizenship from the middle out and the bottom up, where residents decide to act together and to learn in real time from their counterparts in other places.
Thus far, perhaps owing to the progressive tilt of big cities, networked localism seems to be practiced mainly by progressives. That may place a political limit on its ultimate reach. Another limit, of course, is structural: On most issues, even well-woven webs of cities cannot do what a well-run national government can. A $15 wage will directly benefit tens of thousands of low-income workers in my city. It does nothing for millions of others in my country.
Nevertheless, it’s safe to say that Seattle’s $15 moment is a sign of a shift in self-government. The last century rewarded political leaders like TR or LBJ who knew how to centralize the local into the national. This century may belong to those who can decentralize the national—but into a new kind of national. Call it the United Cities of America.
Source
Businesses Support Raising The Minimum Wage. Why Doesn’t The Business Lobby?
Businesses Support Raising The Minimum Wage. Why Doesn’t The Business Lobby?
Raising the minimum wage. More paid sick leave and family leave. More stable scheduling for workers. When a major...
Raising the minimum wage. More paid sick leave and family leave. More stable scheduling for workers. When a major Republican-friendly polling shop surveyed CEOs across the country about these typically left-leaning policies, one thing was made clear: they overwhelmingly support them.
So when it came to presenting the results to the Council of State Chambers of Commerce, which commissioned the research, the pollsters had a challenge on their hands — how to reconcile the widespread opposition to these policies by many business lobby groups with their popularity among the people actually running businesses.
In a recorded webinar, David Merritt, the managing director of polling firm LuntzGlobal, described the “empathy” CEOs feel for workers along with their support for labor-friendly policies. “If you ask about them in isolation, of course we want to take care of people who are caring for a loved one. Of course we want to give folks more benefits or more leave or more income.”
In the presentation, obtained by liberal advocacy group the Center for Media and Democracy, Merritt told the business lobbyists that executives expressed widespread support for a number of policies that are vehemently opposed by conservative politicians.
Based on their survey of 1,000 executives, LuntzGlobal found 80% supported raising their state minimum wage, 82% supported increasing paid parental leave requirements and 73% supported increasing paid sick leave. The Washington Post first reported details of the presentation.
“If you’re fighting against a minimum wage increase, you’re fighting an uphill battle,” Merritt said in the presentation. “Because most Americans, even most Republicans, support raising a minimum wage.”
He went on to coach participants on how to oppose those policies anyhow.
“A lot of you guys have minimum wage battles at the state level. If you are fighting those fights, the best way to fight it is not to talk about the minimum wage,” he said. “If you can, turn it into a federal issue and talk about the Earned Income Tax Credit.”
Joe Crosby, Director of the Council of State Chambers, which commissioned the research, said in a statement that the survey was intended “to benchmark trends on current political issues” and “it primarily covered mid-sized and larger companies, not the smaller businesses that are most affected by wage and leave mandates.”
LuntzGlobal, founded by prominent Republican pollster and consultant Frank Luntz, was unable to comment, per the terms of its contract wit the Council of State Chambers, Crosby said.
“We have known for years”
Advocates for these worker-friendly policies said the findings are proof their cause has many allies in the business community — even if those allies aren’t often the most outspoken voices representing business interests in Washington and state houses.
“We have known for years what this research confirms: that an overwhelming share of business leaders support paid sick days, paid leave and other family friendly policies,” said Debra L. Ness, president of the National Partnership for Women & Families, a group that advocates for paid leave.
At one point in the call, Merritt held up language from the group Ness belongs to (below) as polling higher among executives than any other.
“I wouldn’t have changed anything about this statement,” Merritt said in the presentation. “This was the clear winner — from the National Partnership for Women and Families… Perfect, perfect language.”
Business lobby groups like the various state-level chambers of commerce are “not currently representing the views of their members — and doing that at the expense of single moms and hard-working parents,” said Elianne Farhat, who runs the Fair Workweek Initiative, a campaign of the Center For Popular Democracy, a liberal advocacy group. “In every place fair workweek laws are moving, the chambers of commerce have been the loudest voices of opposition.”
But Crosby, the Director of the Council of State Chambers, said the real question at issue is whether labor regulations should be forced onto all businesses by law, not whether businesses support the goal of better pay and working conditions. “Of course business owners support raising wages and benefits for their employees; those are goals they work for every day,” he wrote in an email to BuzzFeed News. “But one-size-fits-all government mandates simply don’t work.”
A spokesperson for the National Restaurant Association, the industry’s largest trade group and one of the loudest voices opposing minimum wake hikes, said its members are more sensitive to labor costs than those in other industries. “The Council of State Chambers represents a diverse range of businesses, including tech and manufacturing companies, that could adapt to increased labor costs more easily” than restaurant and fast food owners, said NRA spokesperson Christin Fernandez.
The U.S. Chamber of Commerce, the federal body representing the country’s business community, echoed concerns that pro-labor policies would negatively affect employers.
“The U.S. Chamber, based on input from our members, continues to believe that imposing higher labor costs on employers, especially small businesses, will force them to cut back elsewhere, and will ultimately price low and un-skilled workers out of entry level job opportunities,” said Randy Johnson, senior vice president of Labor, Immigration, and Employee Benefits for the Chamber, in a statement.
Asked about the chamber’s position on paid family and sick leave, as well as predictive scheduling, all of which polled well in the survey, spokeswoman Blair Holmes wrote that the Chamber is “careful to be responsive and in synch” with the business community it represents.
“The only point we will make is to say we have not lobbied on these issues in any of the states,” she said, adding that the federal group “is not in a position to comment on the positions these state chambers may have taken” with respect to raising the minimum wage or paid leave and “will not comment on state or local versions of predictive scheduling legislation.”
On its website, the U.S. Chamber of Commerce lists among its 2016 priorities: “Oppose efforts to increase the minimum wage and to index the minimum wage to inflation,” and “Oppose attempts to make FMLA [Family and Medical Leave Act] leave paid or to mandate paid sick leave.”
By Cora Lewis
Source
Fed Up Statement: Market Turmoil Should Remind Fed that Economy Is Too Weak to Slow It Down
Shawn Sebastian, Policy Analyst at the Center for Popular Democracy, released the following statement on behalf of the...
Shawn Sebastian, Policy Analyst at the Center for Popular Democracy, released the following statement on behalf of the Fed Up campaign:
“The Fed Up campaign has been saying for more than a year that the economy is too weak to warrant interest rate hikes. Although the stock market was performing well and Wall Street was reaping major profits, the real economy has seen stagnant wages and insufficient job growth.
“The past week’s events vindicate our argument. The economy is too weak, and the performance of the stock market is not a legitimate basis for making interest rate decisions. Just as the market inflated itself over previous months, and witnessed a “correction” recently, it will likely continue to fluctuate in the months ahead. Fed officials who pointed to an inflated stock market as a justification to raise interest rates have been proven wrong: the health of the economy should be measured by the labor market, not the stock market, and the labor market is far from recovered.
“The Fed must continue focusing on the fundamentals: building a labor market that works for all communities, and that features rising wages and good jobs for everybody who wants to work. Creating genuine full employment is the Fed’s mandate, and the past few days vindicate the message that the Fed Up campaign’s worker leaders and economists have said all along: this economy is far too weak for the Fed to intentionally slow it down.”
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Arrests, sit-ins, shouting — activists plan a week of nationwide protest to fight Graham-Cassidy
Arrests, sit-ins, shouting — activists plan a week of nationwide protest to fight Graham-Cassidy
Since early March, when the first Republican effort to repeal and replace the Affordable Care Act was introduced in the...
Since early March, when the first Republican effort to repeal and replace the Affordable Care Act was introduced in the House, activist groups have driven millions of phone calls and thousands of protesters to Washington.
To push for the bill’s defeat, they led numerous rallies on Capitol Hill, occupied Senate offices, shouted in the Capitol building — and even learned, if they made enough noise, senators could hear them outside the Capitol.
Read the full article here.
Albany Must Keep the Charter Cap
Earlier this year, the New York City Council passed my resolution urging the state legislature to keep the cap on...
Earlier this year, the New York City Council passed my resolution urging the state legislature to keep the cap on charter schools. That was nothing new: Council Members have long showed their opposition to raising the cap. But, with recent efforts by powerful special interests, including more than $13 million spent in lobbying and campaign ads, we need to remind New York why raising the cap is not only unnecessary, but also harmful to our public school children.
First, there is the capacity question. Charter schools have 2,500 unfilled seats in New York City. In addition, current charter agreements could allow for more than 27,000 additional authorized seats. In other words, these charter schools already are not handling their assigned share of students, and that burdens crowded public schools, making it more difficult for those schools to provide quality education.
Second, charter schools are not required to serve students who transfer to or join schools mid-year because of disciplinary measures or because of a family's choice. They also do not serve nearly the same amount of students with special needs as public schools. This means that when the school year starts, charters receive funding for a certain number of students yet actually end up teaching fewer than they are budgeted for. They then pocket the remainder and can boast lower class sizes while public schools again shoulder the burden.
Finally, the Center for Popular Democracy reported that New York stood to lose over $54 million to charter school-related fraud in 2014 alone. Audits can help uncover instances of fraud, mishandling of funds, conflicts of interest within governing boards, and a number of other troubling findings, yet charter schools largely oppose efforts to increase transparency. The State Comptroller's attempt to audit charter schools has already been foiled at every turn, meaning New Yorkers are left in the dark about how exactly our public dollars are spent.
Meanwhile, more than $5 billion in state money is owed to our traditional public schools to provide every child access to a "sound basic education" per the Campaign for Fiscal Equity ruling. Forty-four percent of all schools in New York City are overcrowded. The City's Independent Budget Office reports that most schools are at 102 percent capacity or more, and 88 percent of the city's charter schools are co-located within a district school, adding to the space crunch.
Co-located charter schools, by the way, are an exercise in inequality: privately run schools, with access to both private and public funds, that are taking resources from underfunded district schools. What does this mean for the social climate in these schools? Many students feel, and rightfully so, that district schools and their students are not valued the way they should be.
It is sensible to provide the money and attention owed to our public schools to keep them strong. Charter schools already divert resources from the majority of students, who attend public schools. Charter schools do not serve our children, especially the most needy, with enough accountability to justify increasing their share of funding.
All children deserve an education system that celebrates their potential by giving them the space and funding necessary to achieve educational excellence. The raising of the charter cap would be damaging to our public school system in terms of morale, space, funding, and overall quality. Leaders in Albany should finish their legislative session without altering the cap. Instead, it is time to ensure a feasible means of success for public schools by giving them the focus they need and not investing in a private enterprise that has yet to fulfill its promise to New Yorkers.
***Daniel Dromm is the Education Committee Chair of the New York City Council.
Source: Gotham Gazette
Activists offer ideas to police charter schools
A pair of activist groups, the Alliance for Quality Education and Center for Popular Democracy, is out with a guide —...
A pair of activist groups, the Alliance for Quality Education and Center for Popular Democracy, is out with a guide — or rather suggestions — for better policing and monitoring finances of the state’s charter schools, which serve some 90,000 students, mostly in New York City.
The report states that since charters aren’t subject to all the reporting requirements required of public schools, there has been waste and abuse.
It contends the state could lose $54 million to fraud at charter schools this year, based on an accounting system used by fraud examiners that assumes 5 percent of that kind of mismanagement and tomfoolery.
To be sure, these groups are not exactly charter-friendly: AQE is funded in part by the state teachers union; the Center for Popular Democracy is also aligned with the national teachers union, AFT, among other groups.
They want a moratorium on charter expansion — which could become a high-profile issue during the next legislative session.
Here is their release and report: One note: some of these problems outlined below including the issues at Harriett Tubman Charter School occurred several years ago and under different administrations.
Today, the Center for Popular Democracy and Alliance for Quality Education released a report titled Risking Public Money: New York Charter School Fraud that reveals vulnerabilities in the state’s charter oversight system that could potentially cost New York state taxpayers as much as $54 million in charter fraud this year alone.
“Our governor and other school privatization advocates have pushed relentlessly to expand the charter industry at the expense of public school communities in New York State,” said Billy Easton, Executive Director of the Alliance for Quality Education. “But the proliferation of charters hasn’t been matched by the oversight needed to ensure that public money intended for students doesn’t instead get lost to fraud, waste and abuse.”
The report finds that state agencies have audited just a quarter of New York’s more than 250 charter schools since 2005, largely relying on them to police themselves instead. Yet in a startling 95 percent of the charters examined, auditors found mismanagement and internal control deficiencies that have occasioned $28.2 million in known fraud, waste, or mismanagement. Recognizing that the industry cannot be trusted to monitor itself for problems, the report’s authors have offered common sense interventions to remedy the problem, and have called for a moratorium on charter expansion until meaningful public oversight has been put in place.
“We can’t afford to have a system that fails to cull the fraudulent charter operators from the honest ones.” said Kyle Serrette, Education Director at the Center for Popular Democracy. “Given that New York spends over $1.5 billion on charter schools and more than 90,000 children are enrolled, a lot is at stake. We can’t afford to wait for tens or hundreds of millions more dollars to be lost before policymakers address this glaring issue.”
Here are only a few statewide examples among the dozens in the report:
IN NEW YORK CITY: Harriett Tubman Charter School issued credit cards to its executive director and its director of operation. They charge more than $75,000 in less than two years. The charges were never approved or explained.
IN LONG ISLAND: Roosevelt Children’s Academy Charter School paid four vendor a total of $521,197 for significant public work and purchase contracts without fair competition.
IN ALBANY: Albany Commuity Charter School lost between $207,000 to $2.3 million by purchasing a site for its elementary school rather than leasing it.
IN ROCHESTER: Eugenio Maria de Hostos Charter School failed to enter into a competitive bidding process for several instructional contracts. Instead the school awarded contracts to board members, relatives and other related parties.
IN BUFFALO: Oracle Charter High School entered a 15-year building lease with Oracle Building Corporation, agreeing to pay them more than $5 million at a 20 percent interest rate.
Source: Times Union
Scam Central: Elizabeth Warren Tells Wells Fargo CEO to Resign and Get It Over With
Scam Central: Elizabeth Warren Tells Wells Fargo CEO to Resign and Get It Over With
Wells Fargo CEO John Stumpf was on the hot seat Tuesday when he faced Massachusetts senator Elizabeth Warren and other...
Wells Fargo CEO John Stumpf was on the hot seat Tuesday when he faced Massachusetts senator Elizabeth Warren and other angry lawmakers at a Senate Banking Committee hearing designed to investigate the bank’s widespread rip-off of its customers.
Warren told Stumpf, who earns $19 million a year: “You should resign... You should be criminally investigated.”
Wells Fargo is the nation’s fourth largest bank by assets and its leading home lender.
Warren’s verbal assault on Stumpf generated considerable publicity. But this issue wouldn’t have surfaced in the first place without the hard work of several grassroots community and labor organizations, especially the Committee for Better Banks, that first brought the scandal to the attention of the media, elected officials and regulators.
Warren demanded both the Department of Justice and Securities and Exchange Commission criminally investigate Stumpf for Wells Fargo’s practice of pressuring its low-level employees to create over 2 million unwanted checking and credit-card accounts without consumers’ knowledge or permission in order to grow the bank’s stock price. Warren reminded Stumpf that during the years Wells Fargo engaged in this “scam,” Stumpf’s own portfolio of company stock increased by $200 million.
She urged Stumpf to return the compensation he received while these practices went on.
“So, you haven’t resigned, you haven’t returned a single nickel of your personal earnings, you haven’t fired a single senior executive,” Warren told Stumpf. “Instead, evidently, your definition of accountable is to push the blame to your low-level employees who don’t have the money for a fancy PR firm to defend themselves. It’s gutless leadership.”
“You squeezed your employees to the breaking point so they would cheat customers and you could drive up the value of your stock and put hundreds of millions of dollars in your own pocket,” Warren said.
Wells Fargo’s official line is that the employees were acting on their own to skim extra pay from the bogus accounts. Warren questioned Stumpf about the fraudulent accounts, asking how such an operation could have occurred without the knowledge of top management.
Wells Fargo employees say they did so because of what they call the bank’s “sell or die” quota system, which put pressure on employees to engage in these practices in order to keep their jobs. They said it was a routine practice employees referred to as “sandbagging.”
Activists are up in arms over Wells Fargo’s double standard in dealing with its employees. After the scandal was exposed by grassroots advocates, the media, and government regulators, the bank fired at least 5,300 employees and refunded millions of dollars to customers. But bank reform activists are skeptical that so many employees could have acted on their own without the knowledge of higher-up bank executives.
Meanwhile, in July, in the wake of the scandal, Carrie Tolstedt, Wells Fargo’s director of consumer banking, the operation that opened the fake accounts, abruptly left the bank where she had worked for 27 years. She took with her a $124.5 million bonus. After her retirement announcement, Stumpf praised Tolstedt as “a standard-bearer of our culture” and “a champion for our customers.”
Warren criticized Stumpf for failing to withdraw Tolstedt’s bonus (a practice known as a “clawback”) in light of the revelations about her division’s behavior. Stumpf said it was up to the bank’s compensation committee, comprised of board members, to decide whether to rescind Tolstedt’s bonus.
“If you have no opinions on the most massive fraud that’s hit this bank since the beginning of time, how can it be that you get to continue to collect a paycheck?” Warren asked.
Moreover, activists say that the problem goes well beyond Wells Fargo and is an industry-wide scandal.
Ruth Landaverde, a former employee at both Wells Fargo and Bank of America, said the pressure from her supervisors at both banks was so intense she developed a tic in her eye and had trouble sleeping. She told the Associated Press that in order to keep her job she was required to sell four credit cards and four auto loans each week in addition to three home mortgages or refinances.
“I wasn’t going to do something unethical, but the sales pressure was very real,” she said. “I can see why some employees did what they did.”
Landaverde is now a member of the Alliance of Californians for Community Empowerment, a statewide advocacy group that works on housing and banking issues and is a member of the Committee for Better Banks, a coalition of community and labor groups. In an email this week to ACCE members and supporters, she wrote:
“When I worked for Bank of America, I felt uncomfortable when I was given a list of bank customers and told to call them and push new accounts and credit cards that could end up sticking them with unnecessary fees and debt. What’s worse, we were targeting customers in low-income communities of color much more than the customers in more affluent zip codes.”
Landaverde said that “there are still many more banks that have not committed to stop requiring their employees to push unnecessary products in order to keep their jobs. And now, Wells Fargo CEO John Stumpf is throwing his own employees under the bus rather than accepting responsibility for the outrageous high-pressure sales culture that he and other Wall Street executives are creating!”
“I know first-hand that predatory sales exist across the U.S. banking industry,” said Cassaundra Plummer, a former teller at TD Bank and member of the Committee for Better Banks. “At TD bank, sales goals made it impossible for frontline bank workers to help customers find the financial products best suited to them. My manager would encourage customers to take out home equity lines to go on vacation which is the worst financial advice I’ve ever heard. We need to end predatory sales goals across the industry, not just Wells Fargo.”
Last year the Committee for Better Banks delivered a petition signed by more than 11,000 people to Stumpf, along with a letter noting that workers faced “pressures to meet sales quotas under strict monitoring and threat of losing their jobs, often forcing them to push unnecessary products and fees on to their customers, causing them stress and financial hardship,” and that loan servicing departments have been using similar tactics to push consumers toward riskier products they can ill afford.
The group has now launched another petition asking elected leaders in Los Angeles and other cities around the country to ban all city business with banks that force their employees to meet sales goals for high fee products such as credit cards, new accounts and home refinance loans. They say that these incentive programs create a system where bank workers are forced to engage in predatory practices against their professional and ethical beliefs.
“Wells Fargo’s action to eliminate sales quotas is a hard-won victory for front-line bank workers who have been denouncing abusive sales goals for over two years,” said Reuben Traite, an organizer with Committee for Better Banks. “The fact that Wells Fargo turned a blind eye is appalling. But these high pressure sales goals are rampant across big banks and we need to end it across the industry.”
Activists with the Los Angeles chapter of ACCE brought the issue to the attention of the Los Angeles Times, which broke the story in 2013. Once it made the papers, Los Angeles City Attorney Michael Feuer conducted his own investigation and then sued Wells Fargo. All that got the attention of the Consumer Financial Protection Bureau, the federal agency created by the 2010 Dodd-Frank bank reform law.
Last week, CFPB director Richard Cordray, Comptroller of the Currency Thomas Curry, and Feuer announced that they had reached settlements with Wells Fargo over its “major breach of trust.” Wells Fargo agreed to pay CFPB $100 million (the largest fine the agency has ever imposed) in addition to $50 million to the city and county of Los Angeles and $35 million to the Office of the Comptroller of the Currency. Wells Fargo did not admit any wrongdoing in the settlements, although it issued an apology to its customers, promised to revise its sales practices, and agreed to refund consumers for fees assessed on checking and credit cards accounts they didn’t authorize.
Activists point out that the fines being levied against Wells Fargo are a drop in the bucket compared with Wells Fargo’s 2015 profits of $20 billion. It is even less than the more than $200 million in company stock that Stumpf owns. He serves on the board of directors of Target Corporation and Chevron Corporation, and until recently, on the board of the Financial Services Roundtable, a powerful industry lobby group.
The bank’s apology and refunds won’t make the issue go away. Many consumers are suing the bank as are former employees who say they were fired (or forced to resign) when they refused to engage in the fraudulent practices in order to meet the bank’s unrealistic sales quotas.
The issue first emerged in 2013 when the Los Angeles Times uncovered Wells Fargo’s illegal practices. In response to the Times story, Feuer initiated his own investigation and sued the bank, alleging it had “victimized their customers by using pernicious and often illegal sales tactics,” including unattainable quotas that pressured bank employees to “engage in fraudulent behavior.”
The CFPB undertook its own investigation and discovered that Wells Fargo employees opened as many as 1.5 million checking and savings accounts, and more than 500,000 credit cards, without consumers’ knowledge or permission.
The LA and CFPB investigations, the resulting media coverage, and Wells Fargo’s attempt to blame its lower-rung employees for the scandal led five Democrats on the Senate Banking Committee — Sherrod Brown (Ohio), Jack Reed (R.I.), Robert Menendez (N.J.), Jeff Merkley (Ore.), and Warren — to push its Republican chairman, Richard Shelby of Alabama, to holdTuesday’s hearings. They sent Strumpf a letter last week expressing concern that consumers and low-level employees will bear the burden of the bank’s misconduct “while senior executives walk away with multimillion-dollar awards based on what the company later finds out are fraudulent practices.”
The San Francisco-based Wells Fargo has long been a target of bank reform activists for its troublesome track record of risky and reckless behavior. For more than a decade, grassroots groups have challenged Wells Fargo’s racially discriminatory lending practices and aggressive foreclosures. They have picketed at the offices and homes of the bank’s top executives, sued the bank for violating laws against racist mortgage lending, and testified before Congress, state legislatures and city councils demanding that they investigate and rein in Wells Fargo’s troublesome practices.
The activists have primarily been bank consumers and residents of neighborhoods harmed by Wells Fargo’s redlining and other practices. But the two-year-old Committee for Better Banks is comprised of bank employees as well as consumers, representing a new and potentially powerful coalition. Not surprisingly, the Committee for Better Banks is now part of the broader movement to raise wages for service-sector employees like bank tellers to $15 an hour.
The CBB is aligned with the Center for Popular Democracy, a national network of local activist groups that work on housing, banking, and workers rights issues. CPD helped set the stage for the current campaign with its study of bank workers. The CPD report revealed that some of the nation’s largest banks, including Wells Fargo and Citigroup, pressure front-line employees to engage in fraudulent practices to keep their jobs. According to the report, the bank employees try to serve customers responsibly, but feel pressure from higher-ups to meet the quotas.
A report last year by the National Employment Law Center on banking industry wages found that almost three quarters (74.1 percent) of U.S. bank tellers and almost half (44.2 percent) of bank customer service representatives earn less than $15 an hour. The median hourly wage for bank tellers is $12.44. A study by the UC Berkeley Center for Labor Research and Education found that nearly one-third of the families of all tellers are on public assistance. In New York City, the capital of the nation’s banking industry, 39 percent of tellers and their family members are on some form of public assistance program.
Other groups involved in the better banking campaign include Move On, the Communication Workers of America, New York Communities for Change, ACCE, Jobs with Justice, Make the Road, and Americans for Financial Reform, a DC-based watchdog group.
GOP presidential nominee Donald Trump has called for dismantling nearly all of the Dodd-Frank reforms. In contrast, Democratic nominee Hillary Clinton last week touted the Consumer Financial Protection Bureau's “forceful response” to the Wells Fargo scandal, adding that it was “a stark reminder of why we need a strong consumer watchdog to safeguard against unfair and deceptive practices.”
Lisa Donner, executive director of Americans for Financial Reform, a DC-based watchdog group that has played an important part in defending the CFPB from its opponents, said, “The current Wells Fargo scandal reveals why we need a strong regulatory agency that has the backs of bank consumers as well as employees.”
“Wells Fargo’s action to eliminate sales quotas is a hard-won victory for front-line bank workers like me who have been coming together in the Committee for Better Banks and working to end to high-pressure sales goals that hurt our families and communities,” said Julie Miller, a former Wells Fargo branch manager and a member of the Committee for Better Banks.
“Wells Fargo got into this scandal because it turned a deaf ear to the alarms sounded by consumers and its own workers, and its experience proves that these sales goals have no place in the consumer banking industry,” Miller said. “Predatory sales goals are rampant at big banks across the country, and we will keep on working and organizing to make sure Wells Fargo makes good on its word and that other banks follow suit by implementing fair business practices for workers and customers.”
By Peter Dreier
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2 days ago
2 days ago