CPD IN THE NEWS

Sunrise Movement is a youth climate organization that aims to “stop climate change and create millions of good jobs in the process.” It has been taking the lead on efforts to combine climate protection with a federal jobs guarantee. Other groups like the Sierra Club, Demos, 350.org, the Center for Popular Democracy, the Labor Network for Sustainability, and the US Climate Action Network have also been discussing the climate jobs guarantee (CJG).

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Salon - October 29, 2013, by Josh Eidelson -

If the potential president does business's bidding on a new scaffolding bill, workers will die, an advocate warns.

Industry groups hope New York Gov. Andrew Cuomo – a presumed presidential aspirant who’s frequently defied liberals on economics – will back their push to “reform” the country’s toughest law holding contractors responsible when workplace falls end in injury or death.

“I think we’d be picking workers up off the street,” if the state’s “scaffold law” is gutted, said Joel Shufro, who directs the New York Committee for Occupational Safety and Health. “Because I think employers would cut corners in ways that would result in workers being injured or killed.” Cuomo’s office did not respond to inquiries.

In an Oct. 16 letter, dozens of business groups and the New York Conference of Mayors urged Cuomo to reform the stat’s “scaffold law,” a move they said would “help alleviate fiscal stress by saving taxpayer dollars, creating jobs, and increasing revenue to the state and localities.” Signatories included the Lawsuit Reform Alliance of New York, whose director Tom Stebbins told Salon that the group has made the issue a priority because “insurance rates put people of business, they take jobs away, and as we’re finding out more and more, it’s costing us more and more in our public projects.”

The 128-year-old “scaffold law” allows contractors to be held liable for “gravity-related” injuries suffered by their employees when management failed to comply with a safety rule, even (with certain exceptions) if the employee was also at fault. Stebbins contended there was “no data that supports” the claim that it improves safety, and argued that what he called the law’s “absolute liability” standard means “you’re assigned fault without negligence,” and actually “makes job sites less safe.”

“If you absolve employees from responsibility for their actions, they’re less responsible,” said Stebbins. “And if employers are guilty under almost any circumstances, they’re not as incentivized.”

NYCOSH’s Shufro countered that the law holds employers liable “if they violate OSHA regulations or other city, state ordinances, do not provide appropriate training, do not provide appropriate personal protective equipment … But if they are in compliance … they are not liable, they will not be found at fault.”

Stebbins acknowledged that “if you were the only cause of your injury, then that absolute liability doesn’t apply,” but he told Salon that “even the responsible contractor can’t stop every situation.” Stebbins cited the case of a worker who he said intentionally “jumped off the building in order to make a scaffold law claim.” Under current law, he said, a contractor “could be a fraction of a percent responsible and be held liable for 100 percent of the judgment,” rather than having “liability apportioned by fault.” He argued that the law also hurt workers because cash devoted to insurance costs is “money that’s not being spent on jobs, not being spent on union labor.”

Labor groups rejected such claims. “Opponents claim that the Scaffold Law drives up costs and is a job killer; the reality is that it helps prevent a job from being a worker killer,” New York AFL-CIO president Mario Cilento told Salon in an email. Cilento credited the law with “placing responsibility for providing adequate safety equipment and measures squarely in the hands of contractors and owners, ensuring that there is absolutely no ambiguity in who is responsible for maintaining a safe workplace in a very dangerous occupation.” He added that “insurers and contractors try to gut the Scaffold Law and in turn workplace safety” over and over, but “they’ve been rebuffed because the Legislature has recognized that there is no price tag on the lives and well-being of New Yorkers.” Cilento’s Illinois counterpart, state AFL president Michael Carrigan, emailed that the labor federation “regrets the repeal” of the similar Illinois Scaffolding Act, prior to which “Illinois had been the second safest state in construction deaths and accidents.” (The business groups’ letter to Cuomo credited the repeal of Illinois’ law for a subsequent 53 percent decline in construction injuries and said it gave the state “the 10th lowest injury rate in the country”; NYCOSH attributed the decline in injuries to overall national trends.)

“All this law says is that the employers shall be liable if they do not follow rules and regulations that govern safety on these jobs,” said NYCOSH’s Shufro. “So it seems to me that the best way of reducing their costs is to require employers to follow the law.” An NYCOSH analysis of OSHA data on New York state construction found that “At least one OSHA fall prevention standard was violated in nearly 80 percent of accidents in which a worker fell and was killed.”

A study released Thursday by progressive Center for Popular Democracy argued that the industry’s death and injury toll is disproportionately borne by immigrant workers and Latinos. CPD found that Latino and/or immigrant workers made up 60 percent of “fall from elevation fatalities” investigated by OSHA in New York State, and reported that “In 2011 focus groups, Latino construction workers reported fearing retaliation as a key deterrent to raising concerns about safety.”

While business groups have long sought changes in the scaffold law, both sides said this year’s showdown on the issue could be particularly acute. “More and more we’re seeing the cost to the public,” said Stebbins, including insurers “leaving because they can’t sustain an absolute liability and it’s impossible for them to gauge risk.” Shufro countered that insurers “have refused” when asked by legislators to “open the books” and document their losses; NYCOSH also notes that New York experienced only a 9.1 percent drop in construction employment from 2006 to 2011, while the national decline was 28.4 percent.

Cuomo has previously clashed with labor on issues ranging from public workers’ pensions to an expiring (ultimately partially extended) millionaire’s tax. Salon’s Blake Zeff argued in a January BuzzFeed essay that Cuomo’s “approach to balancing two competing interests – piling up points to advance in a Democratic primary for president, while steering to the center in key areas (and carefully avoiding antagonizing monied interests who fund campaigns and influence elite opinion) – has consisted of aggressive advocacy of ‘cultural’ or ‘social’ progressive causes, while downplaying economic ones.” Cuomo this month appointed GOP former Gov. George Pataki to co-chair a commission on reducing tax rates, a move that Michael Kink, who directs the labor-backed coalition A Strong Economy for All, compared in a Capital New York interview to “bringing in Godzilla to oversee the rebuilding from a Godzilla attack.”

Shufro said the scaffold question would “be one of the major political battles that will go on and dominate Albany for the next session,” and so Cuomo was “going to have to make a certain decision about which side he’s going to come out on … I know that this is an important issue to labor, just as it seems to be an important issue to the business community.” Shufro predicted Cuomo’s approach to the scaffold law would be “one of the major issues that will help unions make decisions about how they see him going forward.” He added, “It’s not an easy place to be in.”

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O’Neal is one of dozens of activists and policy experts traveling to Jackson Hole this week to urge the Fed against raising rates. The campaign, called Fed Up, includes some two-dozen unions, community groups, and think tanks, from the AFL-CIO to the Working Families Party. In Jackson Hole, organizers will deliver a petitiondemanding that the Fed rethink its plan to raise interest rates until the recovery can reach more Americans. Fed Up also plans to hold a series of teach-ins exploring questions like “How Do We Build a Fed that Works for Us?” and “Do Black Lives Matter to the Federal Reserve?”

While there’s only so much the Fed can do when spending on public investments and social programs is well below where it should be, the absence of fiscal support makes monetary policy that much more critical to promote a broadly shared recovery. At its core, the Fed Up campaign is about answering two questions, said Ady Barkan of the Center for Popular Democracy during a press call previewing the upcoming meeting: “Whose recovery is this?” and “Whose Federal Reserve is this?”

“I don’t think that those at the Fed know how life is here in south DeKalb County when they say that the economy is recovering,” O’Neal said during the call. O’Neal makes $8.50 an hour at the daycare center she works at in Atlanta. That’s not enough, she says, to cover rent, food, and utilities for her household, let alone the medication she needs to treat asthma and high blood pressure. “Our life is a constant struggle,” she says. “We have to decide whether, you know, are we going to buy meat, or are we going to buy medicine, or are we going to pinch off the electric bill this month?”

But, she emphasized, she’s hardly alone. “It’s also my neighbor. It’s also the person down the hall, my neighbor next door, around the corner. The whole community is suffering.”

The Atlanta area has been particularly hard hit by the financial crisis and weak economic recovery. In 2009, the Pew Hispanic Center named Metro Atlanta one of a handful of “distinct epicenters” of the nationwide foreclosure crisis. According to their report, less than 300 U.S. counties had foreclosure rates of more than 1.8 percent, and 19 of those counties, including DeKalb, are in Metro Atlanta. As elsewhere, the crisis had a particularly severe impact on black communities: All of the 19 counties Pew singled out as centers of the crisis are majority-black.

Since then, the weak recovery has in some ways only worsened inequities like this. In 2011, the unemployment rate for blacks in the Atlanta area stood at 14.4 percent, or twice the rate of their white neighbors. Three years later, black unemployment had dropped to 13.7 percent, but because joblessness among whites in Atlanta had fallen much faster, blacks were now nearly three times as likely to be jobless as whites. Today, DeKalb County has a poverty rate of 19 percent, well above the average for Georgia and the nation as a whole. And most of that poverty has been concentrated on the county’s majority-black south side.

But among black communities nationwide, DeKalb has actually fared relatively well. The area was hit hard by the downturn, but it remains the second-most affluent black-majority county in the country. By contrast, in Washington, D.C., a majority-minority city, black unemployment is a staggering 15.8 percent, more than five times the rate for whites, according to the Economic Policy Institute. Nationwide, after hitting its highest levels since the 1980s, black unemployment remains about double the rate for whites. The mortgage crisis and subsequent downturn destroyed a full 47 percent of black families’ wealth, and that wealth is far from recovered.

Despite that, the Federal Reserve seems perilously close to raising interest rates, possibly as soon as next month—a change that could have a disastrous effect on the already-weak recovery.

“We shouldn’t mince words,” said Barkan. “When the Federal Reserve raises interest rates, it is doing so in order to slow the economy down in order to prevent the economy from creating more jobs.” A slowdown like that would not only make it harder for the labor market to recover, but it also has a good chance of widening the gap in unemployment between blacks and whites. Historically, the joblessness gap between black and white workers tends to grow when the economy slows down.

But Fed officials remain stubbornly committed to a rate hike, even as instability grips the stock market this week. In a speech on Monday, following another day of market volatility, Atlanta Fed President Dennis Lockhart sought to allay suspicionthat the Fed’s plans to raise rates this year had changed. In June, 15 out of 17 senior Fed officials indicated that they’d like to see a rate hike this year, echoing a similar statement from March. As Lockhart put it in another speech on August 10, “The economy has made great gains and is approaching an acceptable normal.” Nowhere in his speech did Lockhart mention the poverty and racial inequality gripping communities just a few miles from the Atlanta Federal Reserve Bank he chairs.

For O’Neal, places like south DeKalb are very far from an acceptable normal. “When the Fed says that the economy is recovering and they want to raise the interest rates,” she said, “I look around and I don’t see recovery in my community.” 

Unfortunately, plenty of Fed leaders don’t seem to think an unequal recovery is their responsibility to address. In testimony before Congress last month, Fed Chair Janet Yellen said that while black unemployment remains very high, “there really isn’t anything directly the Federal Reserve can do to affect the structure of unemployment across groups.”

But Barkan begs to differ. “We think that’s really a mistake,” he said. “A strong economy—more job growth and more wage growth—has a disproportionately positive effect on African Americans because of the racial disparities that exist in our labor market.” Keeping interest rates low is far from the only solution to racial inequality in the job market (and not even the only thing the Fed can do by itself), but it’s a good start.

Josh Bivens of the Economic Policy Institute, another Fed Up signatory, agrees.Because low-wage workers and workers of color tend to feel changes in unemployment much more dramatically, he said, keeping unemployment low should be the Fed’s first priority. “A policy that lets the unemployment rate get as low as it can possibly go without sparking inflation is one that’s going to have disproportionate benefits to workers of color,” he added.

Unfortunately, Barkan said, Fed officials have a long history of overlooking issues like racial gaps in unemployment and wealth. A big part of the problem is the central bank’s leadership, which is heavily skewed toward the banking sector. By law, 72 out of 108 directors of the Fed’s 12 regional banks must represent workers. But currently, just two officially do, compared with 91 who come directly from banks and financial institutions. “Of course when you have leadership like that you get policies that don’t advance the needs of American working families,” Barkan said.

Which is exactly why Fed Up plans to confront the central bank’s leadership today in Jackson Hole. In doing so, the coalition will help connect monetary policy and policymakers to the people and communities it most impacts.

And demanding that interest rates stay low is just a first step. During the conference, Fed Up will also present a report from PolicyLink on what a more equitable recovery would look like. The report explores how genuinely full employment—which has long been a core policy mandate for the Federal Reserve—would reshape our economy. The report defines full employment as no more than 4 percent unemployment for all groups and a labor-force participation rate no lower than 75 percent for men and 60 percent for women. (Currently, labor-force participation remains stuck at 69 percent for men and 56.7 percent for women, the lowest levels in decades.)

As Barkan and Bivens emphasized, a change like that would have a particularly dramatic impact on communities of color. In Atlanta, black unemployment would drop 10 percent while average household income would increase by 11 percent for black families. A full 175,000 people would be lifted out of poverty and the local economy would grow by $24 billion. Nationwide, the change would be just as dramatic. Genuine full employment would cut black unemployment by two-thirds and lift more than nine million people out of poverty.

It’s this kind of recovery that the Fed needs to begin thinking seriously about, said Barkan. The first step, he added, is to rethink how monetary policy is formulated and who gets a seat at the table. 

Correction: In a previous version of this article, Dawn O'Neal's name was mispelled as O'Neil. 

Source: The American Prospect

Outside the office of U.S. Senator Pat Toomey in Philadelphia Tuesday, a group of activists chanted, “Don't cut Medicaid, save our liberty," in a day of actions outside congressional offices in 39 states around the United States.

The national grassroots organization ADAPT of disability rights activists led the sit-in at the Republican's office.

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