Let’s Be Real Episode 6: We’re Fed Up!
Let’s Be Real Episode 6: We’re Fed Up!
This episode, we take a look at a campaign that focuses on the Federal Reserve System and its impact on working people...
This episode, we take a look at a campaign that focuses on the Federal Reserve System and its impact on working people and people of color. We take you to a rally in front of the Federal Reserve Bank of New York where we spoke with two protesters about how the Fed impacts their communities. Then, we sit down with the Director of the Center for Popular Democracy’s Fed Up! Campaign to hear about the fight to put working people and communities of color at the center of the Fed’s decision-making process.
Read the full article here.
Progressive Activists Keep Up Campaign to Thwart Rate Rises
NEW YORK—A group of activists lobbying the Federal Reserve to hold off on raising interest rates is pressing its...
NEW YORK—A group of activists lobbying the Federal Reserve to hold off on raising interest rates is pressing its campaign amid signs from the central bank that it is moving closer to lifting borrowing costs.
Members of the Fed Up Coalition, a left-leaning organization affiliated with the Center for Popular Democracy and connected with labor unions and community groups, met with Fed Chairwoman Janet Yellen and other central bank governors late last year.
They recently have met with the leaders of the Boston, Kansas City and San Francisco Fed banks, and are scheduled to meet next with Atlanta Fed President Dennis Lockharton Aug. 12 and with New York Fed President William Dudley on Aug. 14.
Most Fed officials, including Ms. Yellen, have indicated they expect to start raising short-term interest rates this year if the economy keeps improving. They have held their benchmark rate near zero since December 2008 to bolster the economy.
The activists say they want the Fed to hold off a bit longer to ensure the expansion benefits all Americans, not just the wealthiest.
They also want the Fed to become more open about its actions and how it selects the presidents of the 12 regional reserve banks.
And they want the Fed to engage with banks to promote affordable housing.
“Over the last few weeks we’ve had a lot of success engaging with Fed officials,” said Ady Barkan, who leads the Center for Popular Democracy Fed campaign. His group is “seeing that [Fed officials] are really being responsive” to the case they are making, he said.
Mr. Barkan said a recent meeting with St. Louis Fed President James Bullard was particularly fruitful. Mr. Bullard said in an interview with the Journal Friday the Fed has a balancing act when it comes to setting interest rate policy.
He favors raising interest rates this year and says the central bank’s September meeting is likely a good time to start.
“I think I have the better policy for the type of people they want to help,” Mr. Bullard said. “If you go for too much in monetary policy you can get some sort of financial bubbles and imbalances that fall apart and cause a recession,” and modest rate rises soon will help reduce those risks.
The activist group also is calling for greater representation on regional banks’ boards of directors for noncorporate interests. By law, the regional Fed directors are drawn from a mix of financial industry professionals, community and business leaders. Each board oversees individual reserve bank operations, and the directors from outside the financial sector manage the selection of new reserve bank presidents.
Mr. Barkan said Fed boards are dominated by the perspectives of leaders from large institutions. While he welcomes union and nonprofit representation on the boards, Mr. Barkan said the diversity should extend further and include a more ground-level perspective on how the economy is functioning.
Jean-Andre Sassine, age 48, of New York City, plans to attend the group’s meeting with Mr. Dudley. Mr. Sassine, who said he works on television and advertising productions, became interested in the Fed when his family ran into difficulties during the recession. He said that led him to ask questions about the role the central bank was playing to help everyday people.
When he went with the group to the meeting with Ms. Yellen, Mr. Sassine said he walked away with “the sense they aren’t used to dealing with people. It seems like they just get reports” and work off that data, and little else, to make their decisions, Mr. Sassine said.
“We are supposed to have input and recognition and we don’t have it,” Mr. Sassine said. “It can’t all be corporate heads and bankers…We’ve got to have real people who buy groceries” on the Fed’s various advisory boards, he said.
The Fed has tried to broaden its public outreach in recent years. The central bank this year has been recruiting people to serve on a new Community Advisory Council, which will meet twice a year with Washington-based Fed governors. Ms. Yellen last year visited a job-training program in Chicago and a nonprofit in Chelsea, Mass., that helps unemployed people find work.
Mr. Dudley has conducted a number of public tours of the New York Fed’s district, in which he has met with business leaders, academics, community groups and others. In a Wall Street Journal interview in March 2014 he explained he had been using the tours to make the Fed seem less abstract. And he also said the visits had in particular deepened his understanding of the housing crisis and sharpened his response to those troubles.
Staff at the regional Fed banks who have met with the activists say their meetings are part of regular efforts to engage with their communities, and can offer valuable insight into the state of the economy.
In a statement, the Atlanta Fed said it regularly meets with community based interest groups “through its various outreach programs including community and economic development, economic education, and supervision and regulation.”
Source: The Wall Street Journal
Elizabeth Warren And Congressional Democrats Call Out Lack Of Diversity At The Federal Reserve
Elizabeth Warren And Congressional Democrats Call Out Lack Of Diversity At The Federal Reserve
A majority of House Democrats and eleven Democratic senators sent a letter to Federal Reserve Chair Janet Yellen on...
A majority of House Democrats and eleven Democratic senators sent a letter to Federal Reserve Chair Janet Yellen on Thursday, urging the Fed to improve the diversity of its top officials and increase the representation of consumer and labor groups in its ranks.
The letter, spearheaded by Sen. Elizabeth Warren (D-Mass.) in the Senate and Rep. John Conyers (D-Mich.) in the House, argues that a lack of diversity of all kinds at the Federal Reserve undermines the central bank’s ability to represent the public.
The Fed’s control over monetary policy, the letter notes, gives it far-reaching influence over the economy. When the central bank decides to raise interest rates, it increases borrowing costs, putting downward pressure on job creation in order to keep inflation in check.
A Fed with fewer black and female decision-makers might be less attuned to the ways in which modest changes in the job market disproportionately affect African-Americans and women, both of whom suffer from employment discrimination.
“When the voices of women, African-Americans, Latinos, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected,” the letter states.
Boasting the signatures of 116 House Democrats, including all of the Democrats in the Congressional Black Caucus, the letter does not lack for evidence with which to critique the central bank.
Eighty-three percent of the board members of the regional Federal Reserve banks are white, and almost three-quarters of them are men, according to a Center for Popular Democracy study cited in the letter.
Just 11 percent of those board members represent consumer and community groups or labor organizations, the study states, while 39 percent come from the financial industry and 47 percent from other major business sectors.
When the voices of women, African-Americans, Latinos, and representatives of consumers and labor are excluded from key discussions, their interests are too often neglected.
Warren-Conyers letter to Janet Yellen
The congressional Democrats praised Yellen in the letter for prioritizing full employment since she has taken the helm in 2014. Yellen has presided over just one increase in the Fed’s benchmark rate in December, when the Fed raised it to a range of 0.25 to 0.5 percent from the near-zero level, where it had been since the 2008 financial crisis.
The letter also credits Yellen for promising to “consider” African-American candidates for open regional Fed president positions during her congressional testimony in February, and expressing “concern” that there has never been a black president of a regional Federal Reserve bank.
But just days after Yellen’s testimony, the Democrats note, the Fed announced it had approved the re-appointment of 10 regional Fed presidents, all of whom are white and eight of whom are men.
“Despite the importance of this decision, there appears to have been no public consultation, and limited transparency regarding the metrics and criteria used to evaluate the presidents’ performance, or in the decision to reappoint them,” the letter alleges.
Warren and Conyers’ letter is part of a broader push by progressive members of Congress, along with national activist groups and like-minded economists, to make Federal Reserve monetary policy a key component of the progressive agenda. They argue that the outsize influence of inflation-wary financial professionals on the central bank, plus sustained pressure from ideological conservatives in Congress, mean it’s time for liberals to be more vocal about their views.
The Fed Up coalition, an alliance of progressive groups headed by the Center for Popular Democracy, has led these efforts, which include a reform plan released in April that would transform the Fed into a wholly public entity, among other changes. (The 12 regional Fed banks are currently owned by private financial institutions.)
Fed Up said activists affiliated with its member groups made calls to members of Congress to encourage them to sign the letter.
Democratic hopeful Sen. Bernie Sanders (I-Vt.) was among the lawmakers who did so. Sanders also praised Fed Up’s April reform plan and released detailed proposals of his own for the central bank in December.
Fellow Democratic candidate Hillary Clinton’s campaign implied that Clinton agreed with the letter’s key demands.
“Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue,” Jesse Ferguson, a spokesman for the Clinton campaign, said in a statement. “Secretary Clinton will also defend the Fed’s so-called dual mandate — the legal requirement that it focus on full employment as well as inflation — and will appoint Fed governors who share this commitment and who will carry out unwavering oversight of the financial industry.”
The remarks appear to be the most explicit comments to date by either Clinton or her campaign on the Democratic presidential front-runner’s vision for the Fed and the types of Fed officials she would appoint as president.
Presumptive GOP nominee Donald Trump’s presidential campaign did not immediately respond to a request for comment on the letter.
Trump told CNBC last week that he would likely replace Yellen, who is the first female chair of the central bank, once her term ends in 2018. In the same interview, he said he supports low interest rates, a policy Yellen promoted that might be undone by a more conservative Fed chair.
Trump’s latest comments suggest a departure from claims he made in August, when he said the low rates were feeding a financial asset bubble.
By Daniel Marans
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NYC Group: New City ID Card Will Help ‘Empower’ People
Equal Voice - June 26, 2014 - Residents in New York City – regardless of their immigration or income status – will soon...
Equal Voice - June 26, 2014 - Residents in New York City – regardless of their immigration or income status – will soon be able to receive a municipal identification card following the City Council’s approval on Thursday of the plan, The Center for Popular Democracy (CPD) reported. Mayor Bill de Blasio introduced the idea, known as the “City ID,” and it will be available to residents without consideration of race and citizenship status. New York City government agencies and other major institutions will accept the document as proof of identity.“The new ‘City ID’ will…smooth interactions with city agencies, and likely allow thousands of undocumented New Yorkers to check out library books, sign leases and open bank accounts,” CPD said in a blog post on its website.“It will also give many of the city’s most vulnerable residents much greater confidence when they interact and engage with city law enforcement agencies.”CPD found in a report that looked at other municipalities with similar programs that the identification cards offer protection and a sense of empowerment to “vulnerable communities.” Also, CPD said, the cards “hold symbolic importance in creating a sense of shared community and belonging for immigrants and other marginalized individuals.”The City Council voted 43-3 in support of the identification cards, CPD said.The Center for Popular Democracy (CPD), which has offices in New York City and Washington, D.C., works with unions and others to support workers and immigrants. The group focuses on social and economic justice.
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The issue Democrats need to address in the debate
In just two years, more than 13 million workers have received a raise, most notably in Los Angeles, Chicago, Seattle,...
In just two years, more than 13 million workers have received a raise, most notably in Los Angeles, Chicago, Seattle, Massachusetts and just last month in New York, where wages for fast-food workers were raised.
Work strikes and broad-based mass mobilizations are inspiring and filling a much-needed void. This worker-led movement is stepping in where the federal government has failed.
Nearly 50 percent of workers earn less than $15 an hour and 43 million are forced to work or place their job at risk when sick or faced with a critical care giving need. When Hillary Clinton, Bernie Sanders, Jim Webb, Martin O'Malley, and Lincoln Chafee take the stage in Las Vegas on Tuesday night for the first Democratic presidential debate of the 2016 election, will they be addressing this powerful and significant constituency?
Will they provide relief for working families by presenting real policy solutions that go to the core of what it means to thrive? Or will they trade sallies and barbs in a bid to prevail in a popularity contest, overshadowing the experience of millions of working families in America?
Democratic contenders are likely to lament the fate of a declining middle class squeezed by the rapacious appetites of the 1 percent. This is important, but the candidates will also need to focus on ensuring that the middle class grows through a fair minimum wage, and struggling American workers, many of whom are women and people of color, can take paid sick time off without being penalized.
Not in recent decades have we seen such a vibrant backdrop of resistance and organizing around wages and workers' rights in this country, and Democratic candidates must not squander this golden opportunity to raise awareness around these issues and set an agenda that goes to the heart of what Americans need.
And the workers have been heard: a $15 minimum wage has been passed in the nation's largest cities. In addition, laws raising the minimum wage to more than the federal standard of $7.25 an hour have passed in a number of states and cities. There are now campaigns to raise the floor and standards for workers are being led in 14 states and four cities.
We've seen how lives can change when workers are paid a salary allowing them to make ends meet. Unable to adequately provide for her family on $9 an hour, health-care worker and single mother Sandra Arzu is one of the workers who fought fora $15 minimum wage in Los Angeles. The raise will fundamentally change her life and ability to put food on the table for her family and pay the rent.
Higher wages are vital to improving the lives of low-wage workers but it's not a cure-all. It's also important for low-wage workers to have access to paid sick days to take care of themselves and their families without fear of retribution. A Center for Popular Democracy report published earlier this month reveals 40 percent of surveyed Starbucksworkers reported facing barriers to taking sick days when they were ill.
The candidates need to address in a real way what workers must manage daily. Like a Starbucks barista from Washington State who describes coming to work sick out of fear she would lose her job if she took the day off. She says she rested on cardboard spread out on the floor so she could step in when there was heavy foot traffic in the store.
The federal government has an opportunity to dignify the lives of all workers in this country and address persistent inequality by enacting nationwide policies raising the minimum wage and enforcing paid sick leave. Millions of workers have issued a clarion call to the Democratic candidates and it's now their turn to respond with aggressive policy solutions to address the divide in this country.
We will be watching closely on Tuesday night to see if the candidates have heard the call from this key Democratic constituency — a constituency the Democratic party can't afford to lose.
Source: CNBC
Charter Schools Struggling to Meet Academic Growth
Star Tribune - February 17, 2015, by Kim McGuire - Students in most Minnesota charter schools are failing to hit...
Star Tribune - February 17, 2015, by Kim McGuire - Students in most Minnesota charter schools are failing to hit learning targets and are not achieving adequate academic growth, according to a Star Tribune analysis of school performance data.
The analysis of 128 of the state’s 157 charter schools show that the gulf between the academic success of its white and minority students widened at nearly two-thirds of those schools last year. Slightly more than half of charter schools students were proficient in reading, dramatically worse than traditional public schools, where 72 percent were proficient.
Between 2011 and 2014, 20 charter schools failed every year to meet the state’s expectations for academic growth each year, signaling that some of Minnesota’s most vulnerable students had stagnated academically.
A top official with the Minnesota Department of Education says she is troubled by the data, which runs counter to “the public narrative” that charter schools are generally superior to public schools.
“We hear, as we should, about the highfliers and the schools that are beating the odds, but I think we need to pay even more attention to the schools that are persistently failing to meet expectations,” said Charlene Briner, the Minnesota Department of Education’s chief of staff. Charter school advocates strongly defend their performance. They say the vast majority of schools that aren’t showing enough improvement serve at-risk populations, students who are poor, homeless, with limited English proficiency, or are in danger of dropping out.
“Our students, they’re coming from different environments, both home and school, where they’ve never had the chance to be successful,” said April Harrison, executive director of LoveWorks Academy, a Minneapolis charter school that has the state’s lowest rating. “No one has ever taken the time to say, ‘What’s going on with you? How can I help you?’ That’s what we do.”
Minnesota is the birthplace of the charter school movement and a handful of schools have received national acclaim for their accomplishments, particularly when it comes to making strong academic gains with low-income students of color. But the new information is fueling critics who say the charter school experiment has failed to deliver on teaching innovation.
“Schools promised they were going to help turn around things for these very challenging student populations,” said Kyle Serrette, director of education for the New York City-based Center for Popular Democracy. “Now, here we are 20 years later and they’re realizing that they have the same troubles of public schools systems.”
More than half of schools analyzed from 2011 to 2014 were also failing to meet the department’s expectations for academic growth, the gains made from year to year in reading and math.
Of the 20 schools that failed to meet the state goals for improvement every year, Pillsbury United Communities is the authorizer for six of those schools: Dugsi Academy, LoveWorks Academy for Visual and Performing Arts, Connections Academy, Learning for Leadership Charter School, and the Minnesota Transitions Charter School’s elementary, Connections Academy and Virtual High School. Those schools also missed annual achievement gap targets.
Officials with the Urban Institute for Service and Learning, which oversees Pillsbury’s charters, say most of their schools cater to students at risk of dropping out, those who have been kicked out of other schools, and many who are learning to speak English.
“We intentionally work with students that most other people would really not want to work with,” said Antonio Cardona, director of the institute.
Two years ago, Pillsbury closed Quest Academy, a small St. Louis Park charter school that consistently failed to meet state performance goals.
Cardona said Pillsbury would consider closing more chronically low-performing schools, or more likely, adopt new turnaround strategies. They also want to add some high-performing schools to their portfolio so that some of their low-performing schools might be able to absorb successful teaching strategies.
At LoveWorks Academy in Minneapolis, about 85 percent of the school’s students qualify for free and reduced-price lunches. About 13 percent of its students were proficient in math and 12 percent are proficient in reading.
“What success means for me is our students are reaching the top,” Harrison said. “We are going to work until we get there.”
Some charter schools struggle with stability and finding qualified teachers who are the right fit. In one year, about 65 percent of LoveWorks’ teaching staff turned over. Some left on their own accord while others were not offered their job back.
“I think that’s why we’re seeing success now because we have a staff that’s willing to listen and learn and take the coaching,” said Jamar Smith, the school’s arts coordinator.
Just like traditional public schools, the highest-performing charter schools tend to serve students from more affluent families, the analysis shows.
There are some notable exceptions, many of which are noted annually in the Star Tribune’s “Beating the Odds” list, which is a ranking of high-performing schools that serve a large number of poor students. For years, that list has been dominated by charter schools.
“These are schools that have fully utilized the charter school model to do what needs to be done,” Sweeney said. “If a program isn’t working, if a schedule needs to be changed, they have the flexibility to turn on a dime.”
New Millennium Academy, a Minneapolis charter school that serves mostly Hmong students, has hit the state’s benchmarks for improvement every year from 2011 to 2014. In 2013, it was designated a Celebration school, one of the state’s top school designations.
Amy Erickson, the school’s director of teaching and learning, said the school’s improvement is due to a focused effort to help its students who are learning to speak English — about 85 percent of New Millennium’s enrollment.
Among the ways the school has done that is through data-driven instruction. New Millennium tests its students about every six weeks to see how they’re doing. Those who need extra help receive it in small groups.
“Many of our parents don’t read or write English,” said Yee Yang, the school’s executive director. “So we have meetings where we just talk about the importance of education. We want to make sure they’re focused on that, too.”
In recent years, Minnesota has increased its scrutiny of charter schools, particularly organizations that authorize them. Starting in 2015, the state will begin evaluating authorizers. An unsatisfactory rating means an authorizer would lose the ability to create new schools.
The legislative effort has revealed a rift between differing charter groups.
Charter School Partners is supporting legislation that would make it easier for authorizers to close schools that perform poorly.
“We think it’s an inoculation for our charter community,” said Brian Sweeney, Charter School Partners’ director of public affairs.
The Minnesota Association of Charter Schools, which represents about half the state’s charter schools, will oppose any legislative efforts that give authorizers more authority to close low-performing schools.
“It’s the teachers and principals who have a much more direct impact on student achievement,” said Eugene Piccolo, the association’s director. “Not the authorizers.”
Instead, the association is throwing its efforts behind legislative proposals it believes might help level the financial playing field between charters and traditional public schools.
A recent report commissioned by Charter School Partners shows that Minneapolis Public Schools receives about 31 percent more in funding per pupil than the average Minneapolis charter school. St. Paul Public Schools receives about 24 percent more per pupil.
Charter school supporters say the model continues to evolve.
“Twenty years ago when charters began in Minnesota, it was 1,000 flowers blooming. Let’s experiment. Let’s innovate. Let’s see what works” Sweeney said. “Nobody ever thought it was to have schools last forever that are failing. So there’s a national move to improve the sector and I think we need to do that here in Minnesota.”
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Commentary: I need the economy to give me a fair chance
Commentary: I need the economy to give me a fair chance
I'VE ALWAYS enjoyed talking with people, and, as long as I can remember, I wanted to work in the hotel industry. It's...
I'VE ALWAYS enjoyed talking with people, and, as long as I can remember, I wanted to work in the hotel industry. It's been my dream to work with guests at the front desk to make sure they have the best experience possible.
As an African-American woman, I knew that lucky breaks weren't going to be handed to me, so I did everything I could to achieve my dreams. I went to school and got my bachelor's degree in hospitality and hotel management in 2000 from the Indiana University of Pennsylvania.
However, apart from a brief internship after college at the Best Western and a year at the Hilton working at the switchboard, which was almost a decade ago, I haven't been able to find work in my chosen field - a field in which I have a degree.
I've heard people say the recession is over because the unemployment rate is about 5 percent. But I can tell you that things are still really bad in the black community. Currently, unemployment for blacks is about 9 percent.
I've always been politically active and serve as the judge of elections in my voting district. So when I heard about a campaign that calls on the Federal Reserve to ensure that everybody gets decent paying work, including black folks, I was eager to join.
When I got my degree 16 years ago, the economy was in decent shape. Armed with my degree, the internship experience and good recommendations, I didn't expect to have any problems getting a job in a hotel. I applied to two dozen jobs and, after being turned down at all of them, I had to take other kinds of jobs in food service or customer service.
Finally, after many years, I got my switchboard job at the Hilton. Even though I was getting only $10 an hour, I was excited to finally be working at a hotel and thought I would just stay there and work my way up. But the recession hit in 2008, and I was laid off a year later.
That's when things became really tough. The recession hit African-American women, even college-educated ones like me, particularly hard. I've worked on and off since 2008, but finding good work has become almost impossible. At one point, I was traveling two hours each way to get to my job at a state-run liquor store.
I eventually had to quit when I suffered severe medical issues. I was diagnosed with a neurological condition and uterine fibroids, all within a matter of months. A couple of years ago, I was able to work again and joined a job skills program. The program placed me at a job where I work part-time - only 20 hours a week - as a cashier and food server at a university dining hall.
The unemployment rate apparently counts people like me as employed, even though I don't work enough hours to pay my bills. I'm overqualified and underpaid (I earn $11.25 an hour), but since I'm working - even though I'm still on Medicaid and food stamps - I'm used as evidence to say the recession is over.
Involuntary part-time unemployment is a more accurate figure to look at. It's over 15 percent for blacks! That's a whole lot of people who aren't making ends meet, but are still being counted as working.
People need to know that the Federal Reserve has incredible power over the economy and people's lives. It might seem very abstract, but it's not. If the Federal Reserve keeps interest rates low, the economy will continue to grow and people like me will be able to find full-time jobs or better paying work. If it raises rates because it claims the economy is doing well, it will be tougher for everyone to find jobs.
I'm going to Jackson Hole, Wyo., next week to join a protest against the Federal Reserve, which holds a symposium there every year. We want the president of the Philadelphia Fed, Patrick Harker, and the rest of the Fed, to see what regular folks go through beyond the numbers in the headlines.
Every week, I still go online to look for jobs at large hotel chains. I know that one of these days I will work at a hotel again. I just need the economy to give me a fair chance.
Salwa Shabazz lives in Philadelphia and is a member of the Fed Up campaign, an initiative of the Center for Popular Democracy.
By Salwa Shabazz
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The Health-Care Industry Is Sick
The Health-Care Industry Is Sick
I have ALS, a deadly, incurable neurological disease that is paralyzing my whole body, including my diaphragm. This...
I have ALS, a deadly, incurable neurological disease that is paralyzing my whole body, including my diaphragm. This makes it difficult for me to breathe while lying flat in bed. This month, my doctor prescribed me a Trilogy breathing-assistance machine, which would solve the problem (at least for now). Yet my insurance, Health Net, denied coverage, calling it “experimental.”
Read the full article here.
Bank Workers Tell Their Bosses: Stop Making Us Sell Shady Products To Poor People
ThinkProgress - April 9, 2015, by Alan Pyke - The newest line of criticism for the banking industry is coming from...
ThinkProgress - April 9, 2015, by Alan Pyke - The newest line of criticism for the banking industry is coming from within, as a group of rank-and-file banking employees prepare to demand that their employer stop ordering them to use predatory sales tactics and start treating them as a valued piece of the workforce.
A group of tellers, loan officers, and customer service representatives from the country’s largest commercial banks will rally Monday outside office towers in Minneapolis to call attention to their own low pay and to consumer-harming sales policies they say are imposed on them by management. As part of the demonstrations, workers will ask to meet with executives at Wells Fargo to deliver a petition calling for the bank to do away with high-pressure sales quotas for its customer service staff.
In a new report from the Center for Popular Democracy (CPD), one teller “says she has to ‘practically chase customers out of the door hawking unwanted credit and debit card accounts'” or face reproach from her manager, despite corporate policy that ostensibly prohibits disingenuous or high-pressure tales tactics.
“What they want, what they need, isn’t important to us. Selling them a product is,” a call-center worker at another bank said, summarizing the approach her managers take toward customers.
The CPD report details how the largest banks exacerbate inequality on the macro level and prey upon trusting customers on the micro-level. It argues that the largest American consumer banks are contributing to economic inequality and mining huge profits while freezing tens of millions of un-banked Americans out of basic financial services.
The kinds of basic banking products that are essential to working people trying to save for their retirement or their children “are what industry insiders consider ‘low-value’ or ‘low-margin’ services,” CPD notes, and “are not currently a priority for the big banks.” Instead, banks have put tellers and call center employees under ever more pressure to sell people credit cards and additional bank accounts regardless of whether those products suit the customer’s real needs. At one bank, customer service staff must “make 40 percent of the sales of the top seller to avoid being written up.”
For providing this warped version of “customer service” and surviving the high-pressure work environment the banks create for them, frontline workers are rewarded with falling pay. Pay for tellers fell by more than 5 percent from 2007 to 2013 after adjusting for inflation. Bank workers who conduct interviews for people requesting loans have seen their wages drop by 3.2 percent, and customer service reps have gotten a 2.5 percent cut in that same window.
Out of every 10 bank tellers in the country, three are enrolled in food stamps or another public assistance program. Considering that most such programs have far fewer people enrolled than are eligible for them, it’s likely that the ratio of tellers who qualify for public aid is even higher. Taxpayers spend nearly $900 million a year providing benefits to bring bank tellers and their families up to a subsistence-level income, which means everyone in the country is helping to subsidize bank profits.
Those profits are massive, as the CPD report notes. For every dollar in revenue that the 10 largest consumer banks in America bring in, they manage to keep 20 cents as pure profit after paying workers, overhead, and taxes. That large profit margin leaves plenty of room to pay workers enough to avoid poverty.
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More states adopt tough paid sick-leave laws
More states adopt tough paid sick-leave laws
PHOENIX — A new paid sick-leave law took effect Saturday in Arizona, which joins a cluster of other states in...
PHOENIX — A new paid sick-leave law took effect Saturday in Arizona, which joins a cluster of other states in continuing momentum on an issue that has seen broadening political support.
Measures adopted across the nation typically require a minimum number of paid sick hours or days each year and often mandate other guidelines in terms of permissible reasons for leave and record-keeping duties for employers.
Read the full article here.
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