Small Business Hiring is Swinging Higher
CBS News - March 3, 2015, by Jonathan Berr - Want another sign of the economic rebound? Small-business hiring is on the...
CBS News - March 3, 2015, by Jonathan Berr - Want another sign of the economic rebound? Small-business hiring is on the rise.
The Paychex/IHS Small Business Job Index posted a 0.19 percent monthly increase in February, rising to 100.84. That follows January's 0.09 percent gain and marks the second straight month of advances. On a year-over-year basis, the index, which measures hiring at businesses with 50 or fewer workers, slipped 0.31 percent.
"Small businesses are off to a solid start in 2015 when it comes to job growth," said Martin Mucci, president and CEO of Paychex, in a press release. "While it's still early in the year, the first two months have seen consistent positive improvement."
Nationally, signs of increased small-business hiring abound. Only two regions that were measured in February showed a decline, and 13 of the 20 states analyzed have index levels topping 101. The Pacific Region had the best performance in February, while New England, which has gotten pounded this winter with record-setting snowfall, showed the worst one-month performance.
Indiana edged out Texas and Florida to become the leading state for small-business hiring, and Dallas led all metropolitan areas.
The index is calculated using aggregated small-business payroll data on 350,000 small businesses and with a base year of 2004 because it was a period of expansion before the start of the economic downturn. Although politicians often refer to small businesses as an engine of economic growth, economists have disputed this notion in recent years.
Nonetheless, the report does underscore positive job market trends. During 2014, 37 states and the District of Columbia showed statistically significant improvements in employment. Texas had the largest gains (457,900), followed by California (320,300) and Florida (230,600). The biggest job losses were in Minnesota (5,200), Idaho (1,700) and New Mexico (1,600). The strengthening continued in January, when the nation's overall unemployment rate slipped to 5.7 percent.
According to the Federal Reserve, economists believe the "long-run normal" unemployment rate would be between 5 percent and 6 percent over the next five to six years in the absence of "shocks."
Jobless rates for certain categories of workers, though, remain stubbornly high. Unemployment for Millennials, for instance, was 14 percent as of January. According to Fivethirtyeight.com, this generation is poorer than people their age were in 1989 because so many are deeply indebted with student loans and are less likely to own a house.
The national jobless rate for African-Americans was 10.3 percent in January. In the two-thirds of states for which data are available, the median real wages of African-Americans fell between 2000 and 2014, while pay for whites rose 2.5 percent during the same period. Two liberal think tanks, the Center for Popular Democracy and the Economic Policy Research Institute, argued in a report released today that these job-market disparities indicate the Federal Reserve should resist pressure to raise interest rates.
"America needs the Federal Reserve to concentrate on labor market stability and ensure that wages are rising with productivity, so that workers reap the benefits from their efficiencies and hard work; that means prioritizing a wage growth target, rather than inflation," the report said. "A Federal Reserve dominated by banks and major corporations will produce an economy that works for them, at the risk of leaving tens of millions of working families -- particularly Black working families -- with little hope of a better life."
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Versace Sued for Allegedly Using a Code Word to Profile Black Shoppers (Update)
Versace Sued for Allegedly Using a Code Word to Profile Black Shoppers (Update)
Update: December 30, 2016, 12:00 p.m. EST: Versace has issued a statement affirming its commitment to equality: “...
Update: December 30, 2016, 12:00 p.m. EST: Versace has issued a statement affirming its commitment to equality: “Versace believes strongly in equal opportunity, as an employer and a retailer. We do not tolerate discrimination on the basis of race, national origin or any other characteristic protected by our civil rights laws. We have denied the allegations in this suit, and we will not comment further concerning pending litigation.”
Originally posted on December 27, 2016:
Versace is coming under fire for allegedly using a secret code to alert workers when an African-American person enters the store. A former employee who says he experienced the shocking scenario firsthand is suing for unpaid wages and damages.
According to the lawsuit, Christopher Sampiro, 23, claims the employees at the Bay Area Versace location used the code word “D410” to casually let each other know when a black person entered the store. The exact code is also used to identify all black clothing. After learning of the practice, the plaintiff, who self-identifies as one-quarter African American, responded to his manager by asking, "You know that I'm African American?" Following the exchange, Sampiro claims he was denied rest breaks and a "legitimate" training. He was fired two weeks later.
The management told Sampiro that he was let go because he hadn't "lived the luxury life," the lawsuit reports. Versace denied the allegations and filed a request for dismissal of the suit—but this isn’t the first time the Italian fashion house has gotten into trouble for its similarly questionable actions related to race.
Earlier this summer, the company released its fall 2016 ad featuring Gigi Hadid as the matriarch of an interracial family. While the campaign initially received praise for the depiction of a racially-diverse family, people were later upset to find that the 21-year-old model was depicted as a mother of two small children. One of the black children also appeared to be strapped into its stroller with a metal chain...it was odd, to say the least. In response to the criticism, Versace released a statement that said, "The campaign is made of a series of tableaux, some real-life and some fantastical. One part of the story is very glamorous, almost a fantasy, a kind of dream. The other part of the story is the same people, but in their real lives.”
Legal controversy related to race isn't new in the world of fashion. Last year, the Center for Popular Democracy accused Zara of racial profiling in a new report compiled from a survey of 251 Zara employees in New York City. According to the report, the store employees used the word “special order” to trail black customers who were deemed potential thieves while shopping. In the survey, 46 percent of employees claimed black customers were called “special orders” "always" or "often," while 14 percent said the same about Latino customers and 7 percent said the same about whites.
While Zara refuted the claims, both Versace and the Spanish retailer's cases, if proven to be true, show that the industry still clearly has a long way to go when it comes to diversity.
By KRISTEN BATEMAN
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Yellen to Trump: don't expect a flip-flop on financial reforms
JACKSON HOLE, Wyo. (Reuters) - Janet Yellen delivered a message to President Donald Trump on Friday, making it clear...
JACKSON HOLE, Wyo. (Reuters) - Janet Yellen delivered a message to President Donald Trump on Friday, making it clear that if he re-nominates her as Federal Reserve chair she will not turn her back on the raft of U.S. financial reforms that Republicans want to roll back.
Her speech to the world’s top central bankers in Jackson Hole, Wyoming, comes at a time when the chaos at the White House may make it more likely that she would be appointed to serve another four years to head the U.S. central bank.
Read the full article here.
Mayor Signals New Future with Paid Sick Days Move
Gotham Gazette - January 23, 2014, by Amy Carroll & Javier Valdés - Mayor Bill de Blasio and City Council Speaker...
Gotham Gazette - January 23, 2014, by Amy Carroll & Javier Valdés - Mayor Bill de Blasio and City Council Speaker Melissa Mark-Viverito have announced an expansion of paid sick leave coverage for hundreds of thousands of additional workers.
Their decision is a concrete move to confront and alleviate inequality, and bodes well for all New Yorkers, especially low-income workers and their families who live paycheck to paycheck.
The new administration’s proposal will guarantee paid sick leave to manufacturing workers and those at businesses of five or more employees, as well as provide for more aggressive enforcement by city agencies. These are critical first steps that recognize the dignity of workers who drive our city’s economy.
Leonardo Fernando is one of those workers. A 47-year-old immigrant who’s lived in Queens for nine years, he works 12-hour shifts at a car wash, in the heat and in the cold, to support his four children. Previously without paid sick days, he’s gone to work with the flu because he couldn’t afford to risk losing his job or missing a day’s pay. He will now be protected.
Of course, there’s still more to do through the legislative process. We would like to see all workers in New York have the right to paid sick time, and for the administration to strengthen enforcement through increased fines and provide workers the right to go to court when their rights are violated. But this is a great start.
In expanding the earned sick days law, which was fought tooth and nail by the Bloomberg administration and its corporate allies, Mayor de Blasio is honoring a campaign promise and governing as a progressive. And Speaker Mark-Viverito has signaled a clear break from her predecessor, who delayed the enactment of this law for years.
The shift in public policy is a direct result of years of work by workers, progressive advocates, community organizers, labor unions, and the faith community, who banded together to identify and elect new leaders in response to a widening income gap and exclusionary policies that didn’t help middle and working class families.
New York City is now a place where no worker will lose a job for taking a sick day.
What’s next?
Imagine a New York that’s more affordable, more inclusive, more fair. Imagine a city where all children have access to pre-school, a city that eliminates discriminatory policing, a city that leverages wealth to fight inequality and keep families in their homes.
The possibilities are endless. It’s a new day in New York.
Amy Carroll is the Deputy Director of The Center for Popular Democracy. Javier Valdés is the Co-Executive Director of Make The Road New York.
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De Blasio Administration Rejects Two Council Voter Registration Bills
Gotham Gazette - October 23, 2014, by Kristen Meriwether -In 2000 the City Council passed Local Law 29 which aimed to...
Gotham Gazette - October 23, 2014, by Kristen Meriwether -In 2000 the City Council passed Local Law 29 which aimed to increase voter registration by requiring 19 city agencies to offer voter registration forms to its customers. It's fourteen years after the law's passage and compliance has been abysmal.
A report compiled by Center for Popular Democracy released this week shows during their walk-ins to 14 of those city agencies, 95 percent of people were never asked if they wanted to register to vote. Of those who self-identified as citizens, the report indicated 84 percent were not given a voter registration form.
On Thursday the City Council held an oversight hearing to discuss the poor compliance and introduce two bills aimed to increase voter registration at the city agency level. Intro 493, sponsored by Committee on Government Operations chair Ben Kallos, would require 15 additional agencies to be covered under the agency-based voter registration law. Intro 356, sponsored by Council Member Jumaane Williams, would assign a code to each agency that would be printed on the voter registration forms and allow the City to track how many forms are being utilized from each agency.
Both bills are being rejected by the de Blasio administration.
"We are committed to getting agency-based voter registration right," Mindy Tarlow, director of the Mayor's Office of Operations, said during her testimony. "But to get it done, we are going to need time and space to manage the agencies and correct long-standing behavior."
Tarlow pointed to Directive 1, issued by Mayor Bill de Blasio on July 11, 2014. In the directive—his first as mayor—he ordered each agency covered under Local Law 29 to prepare a plan showing how they would implement the requirements of the Charter and submit it within 60 days.
The directive also requires each agency submit a semi-annual report on how the plan is being implemented which will include the number of voter registration forms distributed, the number of registration forms completed, and the number of forms transmitted to the Board of Elections.
Tarlow said she agrees with the assessment that there is a problem, but she argued that with the administration already addressing the problem, it was too early for further legislation.
"It is hard. We are trying to bring a number of agencies along," Tarlow said, adding that before moving on new legislation, "we want a chance to feel like we have made some inroads."
Tarlow did not provide an exact timeline as to when the Council would see the results from Directive 1, but did promise to share preliminary reports with the Council some time at the end of November. Kallos jokingly said he looked forward to to reading it in between bites of his Thanksgiving dinner.
"We need the flexibility to watch this over time," Henry Berger, special counsel to the mayor, said during the hearing.
Intro 356The administration's rejection of the second bill, Intro 356, is based less on Directive 1 and more on privacy concerns. Tarlow argued that by putting a code which would identify what agency a voter was getting services from may deter voters from registering at agencies.
"This is to protect the privacy of the individuals who receive services from government that they don't wish to be disclosed," Tarlow said in her testimony.
The council members now face the prospect of attempting to negotiate the bills with the administration.
On Thursday, Council Member Williams went through a lengthy back-and-forth with members of the administration as well as representatives of the Board of Elections (who testified in a later panel) to dispute objections. Williams argued there was already a code (the number 9) on all voter registration forms coming from City agencies and a separate code for those coming from CUNY.
Both Williams and Kallos asked if it was a matter of that information being released to the public or simply being documented. Tarlow said it wasn't a matter of determining who the person was, but what services they were seeking or receiving. She said the administration believes the fear of that information getting out would deter people from signing up to register to vote.
Williams pointed out information such as social security numbers, fax numbers, and driver's license numbers are all exempt from public reporting, but records are still kept. He argued this code could be exempt as well.
Michael Ryan, executive director of the New York City Board of Elections (BOE), said during his testimony the BOE did not believe this code could be exempt based on current law, but he admitted they did not have a chance to dive in deeply on the issue because they were preparing for the upcoming election.
"I don't know that I have been persuaded," Williams said.
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The CEO of Starbucks won’t keep promises to his workers, but wants an end to “cynicism”
The CEO of Starbucks won’t keep promises to his workers, but wants an end to “cynicism”
Starbucks CEO Howard Schultz, who has somehow convinced himselfthere is public desire for him to be president, took a...
Starbucks CEO Howard Schultz, who has somehow convinced himselfthere is public desire for him to be president, took a moment at yesterday’s board meeting to deliver some pious criticism of America’s unusually rancorous political season.
“Dysfunction and polarization have worsened,” the coffee entrepreneur said. Deep in a bout of Bloombergitis, Schultz warned of the failure of the American dream: “Sadly, our reservoir is running dry, depleted by cynicism, despair, division, exclusion, fear and indifference.”
“What is the role and responsibility of all of us, as citizens?” Schultz asked.
His employees have one answer: They want him to keep Starbucks’ promise to set their schedules at least 10 days in advance, and stop making them work consecutive shifts closing a location and then returning to open it early the next morning. So-called “clopening” shifts can entail working until 11pm and then starting again at 4am.
The scheduling problems have been an issue since at least 2014, when a New York Times investigation exposed how scheduling practices can be as problematic for workers as low pay or abusive treatment. The problem is especially difficult for parents, who must find a way to care for their children without knowing their work responsibilities more than a few days in advance.
The problem seems especially galling because the company uses scheduling software to match employee availability with the predicted demand. Experts suggest that this software could be used to provide more predictability for workers. Starbucks has repeatedly said it will remedy these issues, but interviews with employees suggest they remain. The Center for Popular Democracy, a union-backed organization that runs advocacy campaigns for workers rights, published a survey of 200 workers (pdf) in September 2015 that found half received their schedules less than a week in advance and one in four worked the “clopening” shift.
Grant Medsker, who worked at a Starbucks in Seattle for about a year before quitting in January, told Quartz that managers often don’t follow dictates from headquarters. “Everyone runs their ship their own way, regardless of company policies,” he said.
Some franchise managers attribute the lack of follow-through on the company’s promise on schedules to pressure from higher-ups to keep labor costs down, which leads to chronic understaffing. Meanwhile, Starbucks earnings per share more than doubled between 2011 and 2015; in fiscal 2015 it had an operating income of $3.6 billion. Quartz reached out to Starbucks but has not received a response. In the past, the company has noted that many of its employees see a flexible schedule as a perk, rather than a hindrance. The company also provides its part-time employees with access to health insurance and educational benefits that it says are more generous than comparable companies. But given the company’s history of dubious social responsibility campaigns, it’s hard to see this failure to implement corporate policy as an accident. This is, after all, the executive who announced a personal boycott of political spending even as his company spent millions on lobbying.
“It’s not enough to talk about it, it’s not enough to say, ‘oh that’s really bad, I hope that changes,'” said Medsker, who volunteers with the labor-rights group Working Washington. “We have an obligation to change what is wrong with our society.”
“It’s not about the choice we make every four years,” Schultz said yesterday. “This is about the choices we make every day.”
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Advocates for Greater Fed Diversity Bring Case to Capitol Hill
Advocates for Greater Fed Diversity Bring Case to Capitol Hill
Members of Congress involved in overseeing the country’s financial regulators agree that changes to the Federal Reserve...
Members of Congress involved in overseeing the country’s financial regulators agree that changes to the Federal Reserve’s governance model are overdue. But a Wednesday panel hearing revealed that lawmakers differ on what elements of the status quo need to be preserved.
Republicans on the House Financial Services Subcommittee on Monetary Policy and Trade argued that the Fed’s existing structure, which was enshrined in the 103-year-old Federal Reserve Act, is adequately representative when it comes to racial or gender makeup.
Wednesday’s hearing was the first chance Republican lawmakers had to discuss Fed reform proposals since both parties’ election platforms were adopted at their respective nominating conventions in July, when Democrats called for more diversity.
What the Fed needs instead, according to subcommittee chairman Bill Huizenga (R-Mich), is a new rules-based approach to monetary policymaking that’s outlined in the Financial CHOICE Act, the centerpiece of House GOP’s deregulatory agenda.
Those changes should not extend to major changes at the Fed that would, in effect, eliminate the representation of the banking industry on regional boards or take extraordinary measures to ensure greater diversity, as Democrats suggested in their 2016 election platform, Huizenga said.
He characterized Democratic proposals to overhaul the Fed’s governance structure as a “hostile takeover” of the central bank that’s only being undertaken to ensure high levels of inflation. “Democrats have constantly resisted reforms that would modernize the Federal Reserve, bringing much needed transparency to what most Americans consider an impossibly opaque institution,” Huizenga said.
He then referred to a bill he sponsors that would give Congress oversight responsibilities regarding monetary policy. “The Democrats on the other side of the aisle would like to double down on what Dodd-Frank started, co-opting the Federal Reserve district banks by subjecting them to the same politics that has kicked economic opportunity to the sidelines in the name of reinflating asset prices,” Huizenga said.
He had backup from Kansas City Fed President Esther George and Richmond Fed President Jeffrey Lacker, both of whom testified at today’s hearing and said the central bank’s current governance structure facilitates adequate regional, commercial, ethnic and gender diversity.
“I remain convinced this is a question of accountability, and not of structure, of the Federal Reserve,” George told the panel, referencing the Fed’s overall efforts to be a representative body.
Lacker said he agreed with George, and added that there are “multiple dimensions” officials look at when selecting a regional Fed board.
Regional Fed boards are divided into three alphabetically organized classes. Member banks of each regional Fed select Class A directors to represent the banking industry and Class B directors to serve the public or other commercial interests. The Fed’s Board of Governors selects Class C directors, who are appointed to represent the public interest.
Democrats had their position supported by William Spriggs, chief economist at the AFL-CIO, along with activists in the “Fed Up” coalition who attended the hearing wearing green t-shirts as a form of silent protest about the current Fed structure.
Spriggs and representatives from Fed Up argued that the lack of adequate racial representation on regional boards has prevented the bank from addressing higher rates of unemployment in African-American and Latino communities through monetary policy.
“We believe that when our voices our excluded from the conversation, then our interests are excluded,” said Ruben Lucio, a field organizer for the Fed Up Coalition, which is led by the left-leaning Center for Popular Democracy. Members of the coalition met with George during the Fed’s retreat in Jackson Hole, Wyo., last month.
Lucio indicated that the Fed’s method for determining full employment — part of its dual mandate, along with price stability — might be due for a reevaluation.
“Whose unemployment are they looking at? Are they looking at overall unemployment? Are they talking about black and brown unemployment?” Lucio asked. “When you raise those interest rates because certain communities have recovered, and it’s fine because you’re scared about some threat of inflation, who are you impacting when those interest rates go up?”
Some lawmakers questioned the lopsided nature of the Fed’s regional districts. Reps. Denny Heck of Washington and Bill Foster of Illinois, both members of the business-friendly New Democrat Coalition, were joined by Rep. Mia Love (R-Utah) in floating the possibility of taking a new look at the geographic makeup of the regional boards.
Despite members having stated such clear positions on the issue of Fed governance, the likelihood of movement on any statutory changes to Fed governance is slim at this point. Rep. Gwen Moore of Wisconsin, the ranking Democrat on the subcommittee, said she’s interested in taking an “objective” look at what changes might be needed, but she didn’t say what laws or regulations are needed to implement the changes sought by Democrats.
Huizenga, who reiterated to reporters afterward that he thinks the Fed’s regional directors should be selected as a “meritocracy,” struck a similar tone. “I don’t know that there’s any kind of consensus, as of yet, on that,” he said.
By Ryan Rainey
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The King who carried on the fight for economic justice
The King who carried on the fight for economic justice
Coretta Scott King opposed violence in all its forms — from the personal violence that took her husband 50 years ago...
Coretta Scott King opposed violence in all its forms — from the personal violence that took her husband 50 years ago Wednesday, to what she described as the economic violence of unemployment and poverty that continues around us.
Read the full article here.
Tenants Protest Trump's Proposed Housing Budget Cuts
Tenants Protest Trump's Proposed Housing Budget Cuts
Hundreds of protesters from more than a dozen states demonstrated at a Capitol Hill church Wednesday to oppose the...
Hundreds of protesters from more than a dozen states demonstrated at a Capitol Hill church Wednesday to oppose the Trump administration's proposed $7 billion cut to federal housing programs.
Holding signs that said "No cuts to our funding" and "Stop selling our neighborhoods to Wall Street," the protesters chanted and yelled "No cut" as they streamed inside the Lutheran Church of the Reformation.
Read the full article here.
Philly passes Fair Workweek law, raises minimum wage
According to figures provided by the Washington, D.C.-based Center for Popular Democracy, 58 percent of Hispanic...
According to figures provided by the Washington, D.C.-based Center for Popular Democracy, 58 percent of Hispanic workers, and 55 percent of black workers “have no say” in their work schedules. In addition, 41 percent of “early career adults” receive their schedules “one week or less in advance."
Read the full article here.
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