Yellen Meets With Activists Seeking Fed Reforms
ABC News - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with...
ABC News - November 14, 2014, by Martin Crutsinger - A coalition of community groups and labor unions are "fed up" with the Federal Reserve.
More than two dozen activists demonstrated outside the Fed and then met with Chair Janet Yellen on Friday as part of a new campaign seeking policy reforms and a commitment to keep interest rates low until good jobs are plentiful for all workers. Although the labor market has steadily strengthened this year, wages have remained stagnant.
During the hour-long discussion with Yellen and three other Fed board members, coalition representatives discussed problems their communities were facing with high unemployment and weak wage growth.
Ady Barkan, one of the organizers of "Fed Up: The National Campaign for a Strong Economy," said Yellen and the other Fed officials listened but made no commitments about future Fed policy.
"It was a very good conversation," said Barkan, an attorney with the Center for Popular Democracy in Brooklyn. "They listened very intently, and they asked meaningful follow-up questions."
Fed officials confirmed that the meeting took place but declined to comment on the issues raised at the meeting.
The Fed's outreach to community activists was the latest move by Yellen to focus attention on lingering problems from the Great Recession. Wearing green tee-shirts with the phrase "What Recovery?" the group had protested outside of the Fed's headquarters on Constitution Avenue under the watchful eye of nine Fed security officers.
Members of the group, some of whom had demonstrated at a central bank gathering in August in Jackson Hole, Wyoming said it was important that Fed officials not be swayed by arguments that it needs to move quickly to raise interest rates to make sure inflation does not become a threat.
"The banks are the ones that crashed the economy ... but they're the ones who got the bonuses and the bailouts while workers and homeowners like me were left to drown," said Jean Andre, 48, of New York, who said he was having a tough time finding full-time work.
In addition to Yellen, the Fed officials who took part in the meeting were Fed Vice Chairman Stanley Fischer and Fed board members Jerome Powell and Lael Brainard.
Members of the coalition said about half of the meeting was taken up by their members telling stories about the difficulty in finding jobs, particularly in disadvantaged groups and communities dealing with unemployment much higher than the 5.8 percent national average.
The Fed officials also were presented a petition signed by 5,000 people around the country urging the central bank to keep interest rates low until the country reaches full employment.
The group also pushed for a more open process in the selection of presidents of the Fed's 12 regional banks. They say the current process is too secretive and dominated by officials from banks and other businesses with little input from the public. The regional presidents, along with Fed board members in Washington, participate in the deliberations to set interest rates.
Source
Islas freed pending deportation appeal; ‘double victory’ as Malloy signs TRUST Act into law
New Haven Register – July 20, 2013, by Luther Turmelle - Jose Maria Islas returned to Connecticut Friday, after the...
New Haven Register – July 20, 2013, by Luther Turmelle - Jose Maria Islas returned to Connecticut Friday, after the federal Immigration and Custom Enforcement agency released him from a Massachusetts jail pending his appeal of a deportation order.
A tired but happy Islas stood on the steps of the New Haven People’s Center Friday evening as a small group of supporters held a rally in his honor. Islas, who has been in the United States since 2005 after entering the country illegally, began his day at a detention center in Boston with other undocumented immigrants the United States is seeking to deport
Megan Fountain, a volunteer with Unidad Latina en Accion, credited the public pressure on ICE officials created by more than 3,000 of Islas’ supporters including U.S. Sens. Richard Blumenthal and Chris Murphy, both D-Conn.
“This movement started small and just got bigger and bigger,” Fountain said.
Islas’ case is being heard by the federal Department of Justice’s Board of Immigration Appeals. If the board declines to overturn efforts to deport Islas, the case will then be taken to the U.S. 2nd Circuit Court of Appeals, Fountain said.
Islas’ release came on the same day Gov. Dannel P. Malloy signed the Transparency and Responsibility Using State Tools or (TRUST) Act into law. The TRUST Act aims to discourage law enforcement officials from detaining undocumented immigrants when they report crime, either as witnesses or victims, so they may do so without fear of deportation. The act does so by placing limits on the federal Secure Communities program, which requires local and state law enforcement officials to share biometric information such as fingerprints and immigration status of detained individuals.
“The governor has been a longtime supporter of comprehensive immigration reform,” Andrew Doba, a spokesman for Malloy said Friday. “All this does is extend to the local level what has been the policy of state law enforcement.”
Charges of conspiracy to commit robbery against Islas were dropped after witnesses put him elsewhere at the time of an incident in Hamden last year. Other lesser charges have been wiped from his record after he was granted accelerated rehabilitation.
Islas, who has a wife and child living in Mexico, said he came to America “out of economic necessity.”
“I did it because my mother was sick,” he said.
Ana Maria Rivera, a legal and policy analyst, called Malloy’s signing the TRUST Act and Islas’ release “a double victory.” But she said that with the ongoing federal immigration debate in Washington, those who seek to reform the law must not become complacent.
“Many advocate that increased border militarization must be part of the path to immigration,” Rivera said.
Islas, his sister, Juana, and her family will head to the nation’s capital Monday to meet with federal lawmakers about immigration reform and participate in a series of rallies with groups from all over the country.
“Other people facing detention and deportation must keep fighting,” Juana Islas Santiago said.
Herman Zuniga, director of Comunidad de Inmigrantes de East Haven, called the Obama administration “the worst in United States history” in terms of immigration issues. Zuniga’s organization represents the Ecuadorean community in East Haven.
“Everybody has the right to choose where they live, where they work,” Zuniga said. “Deportation in not the solution.”
Fountain said the Obama administration has set up a quota system to deport 500,000 undocumented immigrants from the United States each year.
Source
111 Miles in Ten Days: Marchers Take Nonviolent Message From Charlottesville to D.C.
111 Miles in Ten Days: Marchers Take Nonviolent Message From Charlottesville to D.C.
About a hundred people are walking north from downtown Charlottesville, Virginia, the scene of a white supremacist...
About a hundred people are walking north from downtown Charlottesville, Virginia, the scene of a white supremacist rally and riot this month, to Washington, D.C., 111 miles away. The journey—a nonviolent response to the violence of the hate groups that descended on Charlottesville—is expected to take ten days.
They are led by the Reverend Cornell William Brooks, a civil rights lawyer and former president and CEO of the NAACP.
Read the full article here.
DACA activists protest at the Capitol: "We shall not be moved"
DACA activists protest at the Capitol: "We shall not be moved"
Demonstrators gathered on Capitol Hill on Feb. 7 to demand a budget deal that includes an alternative for DACA, an...
Demonstrators gathered on Capitol Hill on Feb. 7 to demand a budget deal that includes an alternative for DACA, an Obama-era program that protects roughly 690,000 undocumented immigrants.
Watch the video here.
Activists at Jackson Hole See Recovery on Wall Street, ‘Not My Street’
The Wall Street Journal - August 22, 2014, by Pedro Nicolaci Da Costa - A group of activists has descended on the...
The Wall Street Journal - August 22, 2014, by Pedro Nicolaci Da Costa - A group of activists has descended on the Kansas City Federal Reserve Bank’s annual conference in Jackson Hole, Wyo., to tell central bank officials that any move to raise interest rates soon could wreak havoc on the lives of Americans still struggling with a weak economic recovery.
U.S. unemployment has fallen fairly rapidly in recent months, to 6.2% in July, down from its post-recession peak of 10%. However, the activists said those numbers mask much deeper troubles in the country’s poorer neighborhoods. The unemployment rate for African-Americans, for instance, was 11.1% in July.
Reggie Rounds, 57 years old, came to the conference from Ferguson, Mo., the site of recent violent protests following the killing of an unarmed teenager by a police officer. During a brief conversation here with Federal Reserve Vice Chairman Stanley Fischer, Mr. Rounds, who is unemployed and says he hasn’t had regular work for years, urged the central bank to keep poor Americans on their minds as they make policy decisions.
“I deal with people who have educated themselves. These people, sir, are inundated with student loans. They’re making just not livable wages or not wages at all,” Mr. Rounds told Mr. Fischer. “We’re desperately needing a stimulant into this economy, and job creation, to get us going.”
Mr. Fischer responded: “That’s what the Fed has been trying to do and will continue to try to do.”
The Fed has kept interest rates near zero since December 2008 and bought more than $3 trillion in government and mortgage bonds to keep long-term rates low, spur investment and boost hiring.
However, recent improvements in the job market and a pickup in inflation have revived debate about when the central bank should begin lifting interest rates from rock-bottom lows. In her speech here Friday, Fed Chairwoman Janet Yellen said if the labor market keeps improving faster than the Fed forecasts the central bank could raise rates sooner than expected. Many investors anticipate the first move in the summer of next year, a perception some top Fed officials have encouraged.
Representatives of the Center for Popular Democracy, a left-leaning national nonprofit organization, said they organized the activists’ trip to Jackson Hole. The participants argued that near-term rate increases could have a deep negative impact on the most vulnerable sectors of the population.
Reuben Eckels, 51, a reverend from Wichita, Kan., said he had come to the conference to tell policy makers “how raising interest rates would affect the community in which I serve.” He and other activists played down the notion of a “skills gap” where workers might not have the qualifications for the jobs available.
“We have young people who are college students in our church who have a 4.0 [grade average], Dean’s list, they can’t find jobs,” he said. “So this is not about just raising the rates so we can offset an imbalance for those elderly who are trying to save their portfolio. This is about people on the street, everyday people … who are just trying to live a good quality of life.”
Shemethia Butler, 34, is one such individual. Hailing from Washington, D.C. the mother of two says she is dealing with extreme stress because the wages she earns at McDonald’s aren’t enough to cover her rent, much less basic expenses like food, electricity and transportation.
“I have no vehicle. My housing situation is stressful. I’m about to lose my apartment. I’m struggling really hard,” she said. “Things may be fine on Wall Street, but they’re not fine on my street.”
Source
Tax reform stumbling block
Tax reform stumbling block
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White...
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White House legislative director Marc Short. Part of the reason is that it probably won’t be ready yet. But it also has to wait until after the GOP congress passes a budget resolution, people close to the matter tell MM.
Because if Republicans lay out their tax reform plan beforehand, Democrats could use the budget vote-a-rama process in the Senate to try and attack individual pieces of the plan.
Read the full article here.
The Housing Recovery Has Skipped Poor and Minority Neighborhoods
On October 11, 2009, when Isaac Dieudonne was two years old, his family moved into a new home in Miramar, Florida. As...
On October 11, 2009, when Isaac Dieudonne was two years old, his family moved into a new home in Miramar, Florida. As they began to unpack, young Isaac bounded out the front door in search of fun. The parents found him several minutes later, floating dead in the fetid pool of a foreclosed house.
Since the financial crisis began in 2008, approximately 5.7 million properties have completed the foreclosure process, and stories like this begin to answer the critical question of what happens to all those homes. While many are resold, too often they fall into disrepair, creating blight that drags down property values and turns communities into potential deathtraps, attracting not just mosquitoes and mold, but crime and tragedy.
According to expert reports, this neglect occurs disproportionately in communities of color, part of a disturbing pattern. While the Supreme Court has reaffirmed the ability to use the Fair Housing Act to challenge discriminatory effects in neighborhoods, the nation’s neighborhood layout looks more segregated than ever, exacerbating the racial wealth gap. There’s no point in having an anti-housing discrimination law if it isn't vigorously employed to prevent a real societal division that drags down minority families. The Justice Department, free of uncertainty about the Fair Housing Act’s future, needs to work to realize the law's intended purpose.
The housing recovery has skipped more low-income neighborhoods.Fifteen percent of homes worth less than $200,000 are still underwater, where the borrower owes more on the house than it’s worth. This is compared to only six percent of homes over $200,000. Property values in low-income neighborhoods have not bounced back to the degree of their wealthier counterparts.
An important study from Stanford University shows how this housing divide doesn’t align with socioeconomic status, but with race. Middle-class black households are more likely to live in neighborhoods with lower incomes than the average low-income white household. This creates fewer opportunities for minorities, as neighborhood poverty can predict the quality of schooling and the availability of jobs for the next generation. Areport from the American Civil Liberties Union shows that median household wealth for African-Americans continued to drop after the housing collapse, long after median wealth for whites stabilized. They project this to continue well into the next generation, with a drop in the average black family’s wealth by $98,000 more than it would have been without the Great Recession.
Foreclosures are largely responsible for this widening disparity. Predatory lending was directed at minority homeowners. Subprime mortgages weregiven disproportionately to minority borrowers, and after the housing bubble collapsed, these loans failed at higher rates. Racial segregation prior to the crisis turned these neighborhoods into targets, with subprime lending specialists going door-to-door and luring even those who owned their homes outright into refinances with dodgy terms. Banks like Wells Fargo and Bank of America paid fines for pushing minority borrowers into subprime loans, even when they qualified for better interest rates. But these fines—$175 million and $335 million, respectively—were substantially lower than they paid for other bubble-era abuses.
More black and Latino borrowers had their wealth exclusively tied up in their homes, and when they lost them, more of their wealth dissipated. Even after the collapse, the Federal Reserve found that from 2010-2013, net worth of nonwhite or Hispanic families fell 17 percent, compared to an increase of 2 percent for white families.
This wealth transferred in part to Wall Street. Private equity and hedge funds scooped up hundreds of thousands foreclosed properties in low-income communities, and converted them into rentals. This prevented minority homeowners from benefiting from any return in property values, and displaced many from their neighborhoods. And a recent survey of community organizations finds that this has created higher rents and more transient neighborhoods.
The Department of Housing and Urban Development, along with quasi-public mortgage giants Fannie Mae and Freddie Mac, auction off these homes to investors at a discount, according to a study from the Center for Popular Democracy. The U.S. Conference of Mayors recently passed a resolution urging these government lenders to sell instead to non-profits that would work to protect homes from foreclosure.
And then there is the disparate treatment of foreclosed properties repossessed by banks, known as real estate owned (REO). The National Fair Housing Alliance’s findings in 29 metropolitan areas indicate that REO in communities of color are twice more likely to have damaged doors and windows, overgrown weeds and trash on the premises and holes in the roof or structure. This violates the Fair Housing Act: Banks are responsible for maintenance and upkeep on all properties, and if they neglect that in black and Latino neighborhoods, the Justice Department can sanction them.
The failure to maintain foreclosed properties has multiple negative effects for communities. Blight creates health and safety concerns, acts asmagnets for crime, and lowers property values for neighboring homes. It also reduces the tax base for municipalities, as nobody pays property taxes on an empty house. The city of Detroit has already lost $500 million from foreclosures in the past few years; 78 percent of homes with subprime loans are know foreclosed or abandoned.
Last week, fifteen Senate Democrats, including leaders Chuck Schumerand Dick Durbin and ranking member of the Banking Committee Sherrod Brown, asked regulators to open an investigation into the treatment of foreclosed properties. “The same communities of color that were victimized by predatory lending may now be facing the double whammy of racial bias when it comes to the upkeep of foreclosed homes,” said Brown. But policing foreclosed properties would only begin to close the gap between white and non-white neighborhoods.
The entire point of the Fair Housing Act, passed shortly after Martin Luther King’s death in 1968, was to reverse the findings of the Kerner Commission, that the country “is moving toward two societies, one black, one white — separate and unequal.” But reading through these statistics, you wouldn’t know the Fair Housing Act existed. We are further than ever from what Justice Anthony Kennedy described as the act’s “role in moving the Nation toward a more integrated society.” It has been impotent in the face of multiple discriminatory shots at people of color, which has opened up a historically large wealth gap and crippled their opportunity.
Until we figure out another way for the middle class to build wealth other than purchasing a mortgage, the discriminatory effects of our housing system will further a permanent underclass among people of color in America. The Justice Department has an enormous amount of work to do.
Source: The New Republic
J. Crew, Urban Outfitters, and More Just Stopped Using ‘On-Call’ Scheduling
J. Crew, Urban Outfitters, and More Just Stopped Using ‘On-Call’ Scheduling
Several major retailers have in recent weeks relieved their workers from having to spend their mornings waiting for...
Several major retailers have in recent weeks relieved their workers from having to spend their mornings waiting for their boss to tell them if and when to show up for work.
J. Crew recently joined a group of several other top retail chains in dropping on-call scheduling—the system that requires workers to make themselves available for a shift with no guarantee of actually getting any clocked hours. Under on-call scheduling, workers generally must be ready to be called in for a shift just a few hours beforehand, and often that meant wasting valuable time by not being called in at all. In addition to J. Crew, Urban Outfitters, Gap, Bath & Body Works, Abercrombie & Fitch, and Victoria’s Secret, and various affiliated brands, have announced that they’re phasing out on-call nationwide.
The abandonment of on-call at these high-profile chains—affecting roughly 239,000 retail sales workers, according to the Fair Workweek Initiative (FWI)—represents growing backlash against the erosion of workers’ autonomy in low-wage service sectors. The pressure for reform has been stoked by media scrutiny, labor protests, and litigation, and an investigation into on-call scheduling in New York retail stores by New York Attorney General Eric Schneiderman.
But the fight for fair labor practices isn’t over in retail. Carrie Gleason, director of the FWI, a project of the advocacy group Center for Popular Democracy, says nominally phasing out on-call at a workplace may simply lead to a “whack-a-mole situation,” pushing managers to find other ways to drive workers into erratic and unstable schedules. Your supervisor might not call you in two hours before a shift starts, but might still abruptly cancel your pre-scheduled shift, or text on an “off” day to pressure you to sub for a coworker. Some workplaces might have a set start time for shifts, but then pile on on-call extended hours, so the workday expands unexpectedly. Across the service sectors, Gleason says, “there’s not a real commitment around standards around what workers experience as a predictable schedule.”
Nationwide two-thirds of food service workers and over half of retail workers have at most a week’s notice of their schedules. Part-timers and black and Latino workers disproportionately work irregular schedules.
According to National Women’s Law Center, over half of workers surveyed
“work nonstandard schedules involuntarily because they could not find another job or ‘it is the nature of the job.’” The “nature of the job” reflects the nature of our current economy, which has redefined labor as a seller’s market for employers, while union power and labor protections have disintegrated.
FWI campaigns both for stronger regulation and industry-led reforms. It presses for “high-road workweeks,” under which workers and employersnegotiate equitable scheduling systems, which can streamline operations and reduce turnover, while giving workers more predictable hours, along with flexibility to change schedules on a fair, voluntary basis. (Yet there’s good reason for skepticism about voluntary corporate “social responsibility”: in a recent study of Starbucks’s scheduling reforms, workers nationwide reported irregular and unpredictable shifts, despite the company’s promises of more humane schedules.)
On the regulatory front, as reported previously, some state laws and San Francisco’s new Retail Workers Bill of Rights provide reporting time pay(compensation for unplanned shift changes), and safeguards for stable hours.
California, New York, and other states have recentlyintroduced fair-scheduling legislation, including reforms that provide workers with negotiating mechanisms at work to make scheduling procedures more democratic, and limits on consecutive hourly work shifts.
Nationally, the proposed Schedules That Work Act would provide similar protections for advanced notice, reporting time pay and the right to bargain schedule changes.
The basic principle that drives labor advocates is predictability in both time and earnings, which counterbalances the service industry trend toward precarious low-wage jobs, pushing workers into part-time, temporary, or unstable contract work.
The opportunity cost of abusive schedules drives financial insecurity, impedes career advancement, and hurts families. Erratic hours can interfere with childcare arrangements and medical care, and are linked to increased marital strain and long-term problems with children’s behavioral development.
Sometimes, it’s just humiliating. Like when Mary Colemangot sent home from a shift at Popeyes and ended up effectively paying not to work. As a campaigner with FWI, the grandmother described the experience as a theft of precious time and wages: “When I get to work only to be sent home again, I lose money because I have to pay for my bus fare and hours of time traveling without any pay for the day.” Under a reporting time pay system, however, she might instead have been reimbursed for showing up, instead of bearing the cost of her boss’s arbitrary decisions.
“The idea is that if you need this level of flexibility for your workforce, that’s something that has value, being able to have a nimble workforce that’s ready when you need them,” Gleason says. In fact, honoring the workers’ overall role in an organization, not just hours clocked, is akin to the salary system. White-collar professionals often voluntarily exceed a 40-hour workweek and feel duly rewarded with their annual compensation package.
A fairer schedule system isn’t difficult to imagine if we start with the premise of honoring workers’ time in terms commensurate with the value of what they’re expected to produce—whether it’s impeccable service at peak-demand time, or a good cappuccino. And that’s why unions and other worker-led organizations, which understand a job’s real meaning in the context of workers’ lives, have historically been instrumental in shaping wage structures through collective bargaining. Though unions have withered, smart policy changes and grassroots organizing networks are carving out more autonomy and control for labor over the course of a workday.
The byzantine, unstable scheduling systems that dominate low-wage industries aren’t really “the nature” of today’s jobs so much as the result of a society that deeply undervalues workers’ lives, whether that’s the value of a parent’s time with her children, or the time invested in a college degree. In a “just in time” economy, employers put a premium on consumer convenience and business logistics. But as boundaries blur between work and home, the “new economy” challenges workers to finally reclaim their stolen time.
Source: The Nation
Woman who confronted Flake 'relieved' he called for delaying Kavanaugh vote
Woman who confronted Flake 'relieved' he called for delaying Kavanaugh vote
Maria Gallagher, who on Friday confronted Sen. Jeff Flake with her story of sexual assault, said she was "relieved"...
Maria Gallagher, who on Friday confronted Sen. Jeff Flake with her story of sexual assault, said she was "relieved" when the Arizona Republican called for an FBI investigation into allegations against Supreme Court nominee Brett Kavanaugh.
Gallagher, a resident of New York, stood next to Ana Maria Archila, co-executive director of the Center for Popular Democracy, earlier Friday as the two held open the doors of an elevator Flake was taking on his way to the Senate Judiciary Committee. Soon after, Flake said he would vote to advance Kavanaugh's nomination to the Senate floor, but he said he wanted a vote in the full body delayed for one week while the FBI investigated the allegations.
Read the full article here.
Use of Employee Scheduling Software Raises Union Concerns About Seniority, Work Hours
Reproduced with permission from Daily Labor Report, 97 DLR C-1 (May 20, 2014). Copyright 2014 by The Bureau of National...
Reproduced with permission from Daily Labor Report, 97 DLR C-1 (May 20, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) <https://www.bna.com/>
Bloomberg BNA - May 19, 2014, by Rhonda Smith — Although employee scheduling software is helping employers control labor costs and boost productivity, its impact on retail and restaurant workers is far more bleak, advocates for employees told Bloomberg BNA May 8-19.
“In New York, we're interviewing workers at all big retail chains—Gap, Banana Republic and others,” said Stephanie Luce, an associate professor of labor studies at City University of New York. The interviews are part of an ongoing research project focused on scheduling challenges facing retail workers in New York City.
“What is prevalent in our interviews is just huge frustration with scheduling,” she said. “It's arbitrary. It feels like it's unpredictable. And it can change from week to week or season to season. So this concern about who gets to set the schedule, and do employees have any voice or protections in that, is very prevalent.”
‘On Call' Scheduling Has Drawbacks
The Retail Action Project, a New York-based campaign sponsored by the Retail, Wholesale and Department Store Union, released a video May 1 highlighting the conundrum retail employees face daily over their work schedules. RWDSU is an affiliate of the United Food and Commercial Workers.
“Even though the technology enables [employers] to predict 80 percent of their labor costs well in advance, they are scheduling workers according to the smaller percentage of hours that they can't predict,” Carrie Gleason at the Center for Popular Democracy said.
“Workers are unable to get sufficient hours, and are forced to endure ‘on call' scheduling, where they must wait by the phone to see if they'll be called upon to work,” RAP organizers said on the union's website. “They can't take other jobs, or do anything else that would interfere with their unstable, unpredictable work hours.”
The video is part of an effort to educate workers and policy makers about the need for “fair, stable and predictable schedules for millions of underemployed low wage workers in one of America's biggest job creating industries,” RAP said.
Employment of retail sales workers is projected to grow 10 percent from 2012 to 2022, according to the Labor Department. That growth is about as fast as the average for all occupations, the agency said, but because many workers leave retail there will be a large number of job openings in that sector.
There were 4.6 million retail jobs in 2012, the agency said. It projected that 450,200 will be added in that sector by 2022.
Wanted: ‘Family-Sustaining' Practices
Carrie Gleason, director of a new initiative at the Center for Popular Democracy that focuses on work scheduling issues, told Bloomberg BNA May 16 that new policy protections are needed to ensure “family-sustaining practices” in low-wage sectors.
The technology currently available could be used to actually improve scheduling practices for workers, she said.
“Burgeoning low-wage industries are now relying heavily on a part-time workforce and increasingly using scheduling technology according to fluctuating market demand,” she said. The ultimate result for workers is “very little say in how they work and when they work.”
Gleason also said, “Even though the technology enables [employers] to predict 80 percent of their labor costs well in advance, they are scheduling workers according to the smaller percentage of hours that they can't predict.”
Giving workers more access to the technology would allow them to self-schedule, she said, adding that this would really elevate the quality of workers' jobs. “But, unfortunately, companies like Macy's are not using the technology to the workers' potential,” she said.
Unions have criticized Macy's for not considering employee seniority when using scheduling software to decide who works and when.
Some Retailers Address Scheduling Concerns
Retailers and restaurants in some cities have taken steps to address workers' scheduling concerns, either because they made a business decision to do so or union members pushed for changes during negotiations over collective bargaining agreements.
Employers cited as trailblazers include United Parcel Service of North America Inc., Costco Wholesale Corp., Lord & Taylor, In-N-Out Burgers Inc., and, after new contracts were negotiated, Macy's and Bloomingdale's Inc. in New York City.
All part-time workers at Costco receive their schedules at least two weeks in advance and are guaranteed a minimum of 24 core hours each week, according to a policy brief the Center for Law and Social Policy and two other groups released in March (49 DLR A-6, 3/13/14).
“We want people to work for us who consider us a career,” Mike Brosius, the company's assistant vice president of human resources, said in the brief. “Long-term employees are more productive and serve the needs of our customers better. So we give our employees what's fair and what they need to make a living.”
In a Harvard Business Review article titled “Why ‘Good Jobs' Are Good for Retailers,” Zeynep Ton, an adjunct associate professor of operations management at the Massachusetts Institute of Technology's Sloan School of Management, highlighted Costco, Trader Joe's, QuikTrip and Mercadona, a supermarket chain in Spain. She said these retailers invest in their employees and, in return, reap healthy profits.
“Not surprisingly, I found that unpredictable schedules, short shifts, and dead-end jobs take a toll on employees' morale,” Ton wrote. “When morale is low, absenteeism, tardiness, and turnover rise, increasing the variability of the labor supply, which, of course, makes matching labor with customer traffic more difficult.”
Unions have pushed to shape employers' scheduling policies in collective bargaining agreements.
Union Turns to NLRB for Help
UFCW Local 888, in East Rutherford, N.J., filed an unfair labor practices charge April 28 with the National Labor Relations Board against Century 21 Department Stores LLC. The family-owned, discount retail clothing company operates eight stores in New York and New Jersey and plans to open another one in Philadelphia, a company spokeswoman said May 20.
In its charge, the union alleged that Century 21 refused to bargain “over the implementation and effects of a change in the work schedule system at its Manhattan facility, in violation of the National Labor Relations Act.”
“Until two years ago, we had no issue with scheduling,” Max Bruny, president of UFCW Local 888, told Bloomberg BNA May 16. “Everyone had a fixed schedule. The model was full-time employment. We had members there for 40 years. They had a good schedule [and] good predictability.”
Now, workers are being assigned fewer hours or shifts that require them to work later than they traditionally have—regardless of seniority.
The new scheduling system is “hard on the workers' life—a nightmare,” Bruny said.
Employees who have worked for Century 21 for decades are now being scheduled to work erratic hours, sometimes at night, he said.
“Grievances we're filing relate to workers not being able to schedule for school or take care of sick family members,” Bruny said.
ACA Could Lead to Drop in Workers' Hours
Neil Trautwein, vice president and employee benefits counsel at the National Retail Federation, told Bloomberg BNA May 19 that the Affordable Care Act could be a factor in employer decisions about how many hours employees are scheduled to work. The NRF represents retailers, chain restaurants and grocery stores.
ACA rules mandate that employers with 50 or more full-time workers provide health care coverage. Anyone who works at least 30 hours a week is considered a full-time employee. A tax penalty of as much as $3,000 per employee is levied for noncompliance.
“The 30-hour definition under the ACA is unnecessary and distorts how we manage employees,” Trautwein said.
The NRF supports the Save American Workers Act (H.R. 2575), proposed legislation that calls for raising the threshold from 30 hours per week to 40 hours per week. The bill's backers say this would preserve employee wages and working hours.
“There will be an [employer] incentive, particularly for less well-performing employees, to be held below 30 hours,” Trautwein said. “That's a natural consequence of the ACA structure.”
He added that employee scheduling software also helps employers move high-performing workers into certain positions at certain times.
“Broadly speaking, part-time jobs have been valued in retail and chain restaurants, particularly over the years because of flexibility they allow to wrap work around school or other family responsibilities,” Trautwein said. “A lot of part-time workers aren't interested in working a large number of hours.”
Union Wants More Input About Schedules
UFCW Local 888, which represents more than 2,500 workers at Century 21, would like more input about the new scheduling system and its impact on workers, Bruny said.
“[Century 21] says we should negotiate for all the stores at one time in two years,” when the union's five-year contract with the stores expires, he said.
“Our argument is, ‘This is a drastic change in the workers' lives,' ” Bruny said. “Workers are becoming part-timers overnight. I think that should trigger negotiations. That has to be bargained collectively before a change can be made.”
Bruny also would like to negotiate with Century 21 over whether hourly employees can be cross-trained so they are prepared to work in different store departments should they agree to do so based on the scheduling system. “That would make it easier on the workers,” he said.
Without negotiating over such matters, Bruny added, “we are losing quite a few longtime, full-time workers.”
A Century 21 spokeswoman declined to discuss the NLRB charge, but said to ask “Kronos directly for a statement.”
Kronos Inc. is a workforce management company in Chelmsford, Mass., that sells electronic scheduling systems to organizations. The company did not respond to a Bloomberg BNA request for comment on the NLRB charge UFCW filed against Century 21.
Macy's West Scheduling Proposal
During recent contract negotiations in California, leaders of UFCW Local 5 in San Jose described as “problematic” a Macy's West proposal to implement an electronic scheduling system the company calls “My Schedule Plus.”
“While the computer-based program would create greater scheduling flexibility and an opportunity for more hours for those that want them,” the union said May 5 in an online post, “without modification it would eliminate base schedules and ignore seniority around shift selection.”
Mike Henneberry, a spokesman for UFCW Local 5, told Bloomberg BNA May 8: “At first the company said, ‘We can't change it.' But it turned out they could.”
Macy's did not respond to a Bloomberg BNA request for comment.
Henneberry said Kronos created the Macy's scheduling system.
Charles DeWitt, vice president of business development for Kronos, said such software can be adapted to suit employers' unique needs.
“If the employer wants to maintain a base schedule or respect seniority, it can,” he told Bloomberg BNA May 12. “Various employers have different policies. With the Kronos system, we've tried to capture all that in a system and let retailers, hospitals, and manufacturers put their policies in place.”
Respecting Employee Seniority
Members of RWDSU Local 3 in New York in 2012 ratified a five-year collective bargaining agreement with Bloomingdale's that gave some 2,000 employees at the company's flagship store in New York City more control over hours and scheduling, the union said (86 DLR A-8, 5/3/12).
RWDSU said at the time that scheduling flexibility in the Bloomingdale's contract went further than any other union contract with a large retail company. Under the contract, senior employees have first choice of their preferred hours, and all workers are able to choose one weekend off a month and the late nights they want to work.
A 2011 contract settlement covering some 4,000 workers at Macy's in New York City also improved employees' control over their scheduling, the union said (121 DLR A-13, 6/23/11).
Allen Mayne, RWDSU's director of collective bargaining, told Bloomberg BNA May 9: “The main problem with the Macy's system is it did not recognize an employee's seniority. It lumps all employees together in the same pool and hours are divided up depending on your availability.”
This has a detrimental impact on long-term employees, especially in retail, Mayne said. “In a union environment, where benefits are even better, many employees have many years of seniority,” he said.
RWDSU was able to negotiate in the contract a work rule that allows employees with seniority to have priority access to the scheduling system, Mayne said.
“But there's not enough oversight,” he said. “This is done kind of on the honor system, but people can get in there and input out of seniority order.”
Luce at CUNY said there's a “disconnect” between how sophisticated and helpful to employers the scheduling software has become in the past 15 years and how rudimentary it remains for most retail employees.
“Employees are still submitting their scheduling requests on paper or going into the store to look at their schedules,” she said. “Clearly, the software could allow for employees to be at home and swap shifts. But they are not given access to those systems.”
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