Starbucks Falls Short After Pledging Better Labor Practices
Starbucks Falls Short After Pledging Better Labor Practices
But Starbucks has fallen short on these promises, according to interviews with five current or recent workers at...
But Starbucks has fallen short on these promises, according to interviews with five current or recent workers at several locations across the country. Most complained that they often receive their schedules one week or less in advance, and that the schedules vary substantially every few weeks. Two said their stores still practiced clopenings.
The complaints were documented more widely in a report released on Wednesday by the Center for Popular Democracy, a nonprofit that works with community groups, which gathered responses from some 200 self-identified baristas in the United States through the website Coworker.org.
“We’re the first to admit we have work to do,” said Jaime Riley, a company spokeswoman. “But we feel like we’ve made good progress, and that doesn’t align with what we’re seeing.” Ms. Riley maintained that all baristas now receive their schedules at least 10 days in advance.
Starbucks, whose chief executive, Howard Schultz, has long presented the brand as involving its customers and employees in something more meaningful than a basic economic transaction, has drawn fire for its workplace practices. But its struggles to address the concerns of its employees also open a window into a much larger problem.
In the last two years, the combination of a tight labor market and legal changes — from a rising minimum wage to fair-scheduling legislation that would discourage practices like clopenings — has raised labor costs for employers of low-skill workers in many parts of the country.
To help companies navigate this new landscape, a number of academics and labor advocates have urged a so-called good-jobs or high road approach, in which companies pay workers higher wages and grant them more stable hours, then recover the costs through higher productivity and lower turnover.
Even in service sectors where stores compete aggressively on price, “bad jobs are not a cost-driven necessity but a choice,” concluded Zeynep Ton, who teaches at the M.I.T. Sloan School of Management. “Investment in employees allows for excellent operational execution, which boosts sales and profits.”
And yet, as Professor Ton is careful to point out, it is easy to underestimate the radical nature of the change required for a company to reinvent itself as a good-jobs employer, even when the jobs it provides are not necessarily so bad.
The example of Starbucks illustrates the point. Some of the company’s actions reflect an impulse to treat its workers as more than mere cogs in a giant coffee-serving machine.
Starbucks allows part-timers who work a minimum of 20 hours a week to buy into its health insurance plan after 90 days. In April, it pledged to paythe full cost of tuition for them and full-time workers who pursued an online degree at Arizona State University. And workers promoted to shift supervisor — about one for every four to eight baristas — typically earn a few dollars an hour more than minimum wage.
On the question of scheduling, the company, like many large retail and food service operations, uses state-of-the-art software that forecasts store traffic and helps managers set staff levels accordingly, while trying to honor workers’ preferences regarding hours and availability.
Charles DeWitt is vice president of business development at Kronos, one of the leading scheduling software makers, which has worked with Starbucks. He said that using the software to schedule workers three weeks in advance typically was not much less accurate than using it to schedule workers one week in advance. “The single best predictor of tomorrow is store demand a year ago, though other factors can come into play,” Mr. DeWitt said. “If it’s Monday, then you want to look at Monday this week a year ago.”
(Mr. DeWitt and others involved with such software concede that there are exceptions, like stores that are growing or declining rapidly, and that predictions often get substantially better very close to the target date.)
But there has long been a central obstacle to change: the incentives of store managers, who are encouraged by company policies to err on the side of understaffing. This makes it more difficult to build continuity into workers’ schedules from week to week. It often turns peak hours into an exhausting frenzy that crimps morale and drives workers away.
“The mood lately has not been not superpositive; they’ve been cutting labor pretty drastically,” said Matthew Haskins, a shift supervisor at a Starbucks in Seattle. “There are many days when we find ourselves incredibly — not even a skeletal staff, just short-staffed.”
Mr. Haskins said that his store’s manager received an allotment of labor hours from her supervisor, and that the manager frequently exceeded it. But in the last month or so, she announced that she would make an effort to stay within the allotment. “From what I understand, probably someone higher up said ‘You need to stick to that,’” Mr. Haskins said. “I know it’s got her stressed out, too.”
Benton Stokes, who managed two separate Starbucks stores in Murfreesboro, Tenn., between 2005 and 2008, described a similar dynamic.
“We were given a certain number of labor hours, and we were supposed to schedule only that number in a given week,” Mr. Stokes said. “If I had to exceed my labor budget — and I was careful not to — I would have had to have a conversation” with the district manager. “If there were a couple of conversations, it would be a write-up,” he added.
The understaffing ethos sometimes manifests itself in company policies. For example, Starbucks stores are not required to have assistant managers, and many do without them.
Ciara Moran, who recently quit a job as a barista at a high-volume Starbucks in New Haven, Conn., complained of a “severe understaffing problem” that she blamed on high turnover and inadequate training. She partly attributed this to the store’s lack of an assistant manager. “We had issues that we’d try to take to her” — the store manager — “but she had so much on her plate we let it go,” Ms. Moran said. “Problems would escalate and become a big thing.”
In other cases, the scheduling and staffing problems at Starbucks appear to arise from the way individual managers handle their tight labor budgets.
Some of the baristas said that clopenings were virtually unheard-of at their stores, but LaTranese Sapp, a Starbucks barista in Lawrenceville, Ga., said clopenings occurred at her store because the manager trusted only a handful of workers to close, limiting scheduling options.
Ms. Riley, the Starbucks spokeswoman, said the store’s scheduling software required at least eight hours between shifts, but that workers could close and open consecutively if the shifts were more than eight hours apart.
There are alternatives to help avoid such results, according to Professor Ton’s research. One of the most promising is to create a mini work force of floating relief employees who call a central headquarters each morning, as the QuikTrip chain of convenience stores common in parts of the Midwest and South has done. Because store operations are standardized, relief employees can step in seamlessly.
“If a worker gets sick, what happens is you’ve lost a quarter of your work force,” Professor Ton said of companies with small stores that lack such contingency plans. “Now everybody else has to scramble to get things done.”
(Starbucks employees are often responsible for finding their own replacements when they are sick. “A lot of times when I’m really sick, it’s less work to work the shift than to call around everywhere,” said Kyle Weisse, an Atlanta barista.)
Starbucks, which vowed to improve workers’ quality of life after The New York Times published an account of a barista’s erratic schedule in 2014, is far from the only chain that has faltered in the effort to adjust from low road to high road.
In many cases, the imperative to minimize labor costs has been so deeply ingrained that it becomes difficult to sway managers, even when higher executives see the potential benefits.
Marshall L. Fisher, an expert on retailing at the Wharton School at the University of Pennsylvania, recalled working on a consulting assignment for a large retailer and identifying a few hundred stores where the company could benefit by adding labor. Executives signed onto the change, but managers essentially refused to execute it.
“The managers were afraid to use their hours,” he said. “They were so used to being judged on ‘Did they stay within a budget?’”
In many cases companies end up going out of business rather than adapt. Economists Daniel Aaronson, Eric French and Isaac Sorkin studied the response to large increases of the minimum wage in states like California, Illinois and Oregon in the 2000s. In most states, employment barely budged two years after the higher wage kicked in. But that masked dozens of suddenly uncompetitive stores that went under, and a roughly equal number of new stores that opened.
The fact that the defunct stores were replaced by new ones suggests that, in principle, they could have evolved. But they simply were not capable of pulling it off.
Source: New York Times
Organize Florida activists protest Trump infrastructure plan
Organize Florida activists protest Trump infrastructure plan
Progressive activists gathered on the shores of Lake Parker on Thursday to air their discontent with the Trump...
Progressive activists gathered on the shores of Lake Parker on Thursday to air their discontent with the Trump administration’s outline for a nationwide infrastructure improvement plan.
The plan, outlined broadly in a six-page memo released last month, amounts to placing heavy burdens on the poor through flat user fees like tolls, subsidizing private companies and ignoring public transportation, school facilities and clean energy, said activists with Organize Florida, a project of the Center for Popular Democracy, a left-leaning political advocacy group.
Read the full article here.
I often can't afford groceries because of volatile work schedules at Gap
As the movement for a $15 minimum wage grows, low-wage workers know the problem isn’t just the hourly pay rate. It’s...
As the movement for a $15 minimum wage grows, low-wage workers know the problem isn’t just the hourly pay rate. It’s also the number of hours scheduled. I’ve worked at Gap in multiple locations since October 2014. I’d like to earn a living wage – but a raise alone won’t help me pay the bills if exploitative schedules aren’t fixed too.
I spent most of 2014 unemployed while applying to dozens of jobs. Then, in October, I finally got a job at Gap. Our schedule comes out less than a week in advance. Some of the shifts leave workers “on-call,” meaning we don’t know if we’re going to be working at all that day. The earliest we find out is two hours before the shift is scheduled to start. At my first store, I had 18 hours of penciled-in shifts with only nine guaranteed hours some weeks. This is not uncommon in the industry.
The volatility of on-call scheduling, in combination with the low pay, meant my life at Gap wasn’t all that different from when I was unemployed. Though I was working, I still had to go to a food pantry for groceries. In winter, I had to choose between racking up heat bills I couldn’t afford and freezing in my apartment. My landlord would ask me when I’d have the rent money, but I couldn’t give her an answer because I never knew how many hours I’d actually work in a given week. I couldn’t afford to live in the city where I worked, so I had to transfer to a Gap store back home.
I’m not the only one struggling. Retail workers have the second-lowest average weekly earnings of workers in any sector in the US economy: $444 per week. We also have the second-lowest average weekly working hours. From 2006 to 2010, the number of people working part-time for economic reasons and not by choice, grew from 4 to 9 million. It’s called involuntary part-time work, meaning we want full-time employment but a lack of opportunities prevents us from doing so.
Unpredictable last-minute scheduling makes it difficult to budget and turns even the most basic decisions into headaches. Will we need babysitters for our children? Will we be able to make a doctor’s appointment? Will we have to rush to Gap from our second jobs?
One of my co-workers, started working at Gap as she was transitioning out of homelessness, but she wasn’t making enough to get stable housing on her own. Most so-called middle class jobs lost in the recession have been replaced by low-wage work like retail jobs. I’m thankful to be working, but gratitude born of desperation is no comfort and it certainly doesn’t pay the rent.
As the involuntary part-time worker population has drastically grown, so too has Gap’s executive compensation. Since 2010, total executive compensation packages exploded from $19m to over $42m by 2014. Former CEO Glenn Murphy’s compensation increased from $5.9m in 2010 to $16m in 2014. So-called ‘on-call scheduling’ creates a cheap on-demand workforce, enabling the Gap to pad its bottom line. The gains don’t go to us; they flow to the top-earners in the company. We make the sacrifices, they reap the rewards.
Another co-worker began working at Gap, in addition to a second retail job, as a way to escape the illicit drug trade. My colleague once told me: “everybody wants a job, no one wants to really be out hustling in the streets.” But the on-call shifts became unbearable, and he struggled to pay rent. For him, the trade-off between street money and regular employment was costly. This structural combination of low wages and unfair scheduling pressures workers into the underground economy, and is a hidden pipeline to the prison system.
I do, however, feel hope. Here in Minnesota, lawmakers are considering new legislation, supported by workers and community groups like Neighborhoods Organizing for Change, that would require three weeks’ advance notice of work schedules. Across the country, low-wage workers are fighting for fair scheduling and the tide is turning. Just this summer, Victoria’s Secret and Abercrombie & Fitch have announced an end to their on-call shifts. The Gap can be part of this rising tide.
Source: The Guardian
Advocacy group calls for more oversight of California charter school spending
Advocacy group calls for more oversight of California charter school spending
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report...
A lack of transparency and inadequate oversight can set up the potential for waste, fraud, and abuse. A 2015 report from the Alliance to Reclaim Our Schools and the Center for Popular Democracy, entitled “The Tip of the Iceberg,” reported over $200 million lost to fraud, corruption and mismanagement in charter schools.
Read the full article here.
Fed moves to quell charges of opacity, lack of diversity
Fed moves to quell charges of opacity, lack of diversity
The Federal Reserve has rolled out a series of announcements, online forums and meetings with Americans this year in...
The Federal Reserve has rolled out a series of announcements, online forums and meetings with Americans this year in response to outspoken civic groups and many Democrats, including Hillary Clinton, calling for a more transparent and inclusive U.S. central bank.
The latest critique came this week when Fed Up, a labor-affiliated coalition pushing for reforms, said it was "disappointing" that Nicole Taylor, a black woman and dean of community engagement and diversity at Stanford University whose term as director at the San Francisco Fed soon expires, would be succeeded on the board by Sanford Michelman, a white man who is co-founder of law firm Michelman & Robinson LLP.
"It's definitely a step back in terms of what I'd like to see on our board. We're working actively to build representation of women and minorities," John Williams, president of the San Francisco Fed, said on Wednesday in response to reporters' questions, noting the decision was made by private banks in his district.
After years of resisting more overt political efforts to curb its independence, the Fed this year has appeared willing to shine a light on its historically opaque process of choosing district Fed presidents, and also to show it is more sensitive to racial and gender diversity.
After the Philadelphia, Dallas and Minneapolis Fed banks last year all chose as presidents men with past ties to Goldman Sachs, the Atlanta Fed hosted a public webcast this month and said it seeks a "diverse set of candidates" for its new chief, raising hopes it would name the first black or Latino Fed president in the central bank's 103-year history.
"It's not just because we want to go and say we're diverse," Loretta Mester, Cleveland Fed president, said at a meeting with workers a day after her bank launched online applications for the public to recommend directors and advisers. "It's about getting different view points that are very helpful to us in ... thinking about the economy and understanding the trends."
The regional Fed presidents have rotating votes on policy, except for the head of the New York Fed who has a permanent voting role. Unlike Fed governors who are selected by the White House and approved by the Senate, the presidents are chosen by their district directors, half of whom are themselves picked by private local banks that technically own the Fed banks.
Critics say the dizzying structure leaves the Fed beholden to bankers who do not represent the public, and they point out that 11 of 12 district presidents are white while 10 are men.
By Jonathan Spicer and Dion Rabouin
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Former CPD Deputy Director Profiled in NY Daily News
New York Daily News - April 15, 2014, by Erica Pearson - Nisha Agarwal, the new city commissioner for immigrant affairs...
New York Daily News - April 15, 2014, by Erica Pearson - Nisha Agarwal, the new city commissioner for immigrant affairs, will rely on her experience at the Center for Popular Democracy and as an advocate for language access in hospitals and pharmacies to help implement City Council and Mayor de Blasio’s push for a municipal ID card.
THE CITY’S new commissioner of immigrant affairs has been on the job for just weeks — but she’s been tackling the biggest issues on her office’s agenda for years.
“It’s such a gift to be in this role, given what I’ve done before,” said Nisha Agarwal, 36, a public-interest lawyer and the daughter of Indian immigrants.
“A lot of people have been asking me, ‘What’s it like working in government?’ because this is the first time I’ve ever done that actually, and the reality is the issues are very similar, and the perspectives on those issues, philosophically, are the same,” said Agarwal, who grew up in upstate Fayetteville and lives in Brooklyn.
She was appointed in February.
As the City Council and Mayor de Blasio move to create a municipal ID card open to all residents, regardless of immigration status, Agarwal will use her own research about identity cards across the nation, collected while she was deputy director of the nonprofit Center for Popular Democracy.
“It’s really exciting to be in a place of actually implementing them,” she said.
“In order to have an effective municipal ID program, it certainly cannot be focused only on immigrant communities. It has to engage a broad range of city agencies and it has to appeal to a broad range of communities within New York.”
Agarwal will also draw on her past as she works to create an immigrant report card of sorts to track how well city agencies are including the newest New Yorkers — especially those who struggle to speak English.
“I started my first campaign as a young lawyer working on language access in hospitals and pharmacies,” said Agarwal, who directed New York Lawyers for the Public Interest’s Health Justice Program and was the primary drafter of the city Language Access in Pharmacies Act.
The city law requires chain pharmacies to translate prescriptions into New Yorkers’ primary language — so that they don’t make dangerous dosage mistakes.
It was transformative for her to be a part of developing the new law.
“I’ve always believed that local government is such a site for innovation and progressive change. To actually have a small role in that, it changed my career trajectory. That felt like, now I can see what the city can do,” Agarwal said.
Now, she’s in the position to answer a different question:
“How do we make those laws and policies really stick and go deeper across city government?” Agarwal said.
Before de Blasio picked her to head his Office of Immigrant Affairs, Agarwal developed a new program called the Immigrant Justice Corps, which offers fellowships to new law school graduates so that they can work as immigration lawyers based with New York City community groups.
Agarwal, who has a passion for social justice, said she’s also planning to have her own advocacy agenda — and spoke alongside activists and religious leaders last week at a Foley Square immigrant rights rally.
Her interest in fighting injustice was sparked early — and shaped by her relatives, said Agarwal, whose grandfather marched with Mahatma Gandhi.
When neighbors put up a new swing set but wouldn’t allow everyone to play on it, a young Agarwal was furious.
“That was my earliest memory of injustice, I thought it was terrible. But my response at the time was just to sort of throw rocks and to get really angry,” she said.
“My parents sat me down and said, ‘First of all, maybe you shouldn’t do that. We appreciate your instinct to fight injustice but throwing rocks is not the way to do it. Let us tell you about this man, who is from the country that we come from, who is Gandhi, and he believes in nonviolence.'”
“I think from the earliest stages of my life through my parents and other role models I have had this sense of wanting to do social justice work,” she said.
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Charter Financing: Study Finds Too Little Accountability in California
San Jose Mercury News - April 9, 2014, by Raymond Blanchard - Every parent wishes their children will reach their...
San Jose Mercury News - April 9, 2014, by Raymond Blanchard - Every parent wishes their children will reach their highest potential to live the life they choose. We do everything in our power to make this wish a reality, and we know an extraordinary education is essential.
Fulfilling this wish is difficult, particularly in the Bay Area. When California, the eighth largest economy in the world, ranks 49th among the states in school spending, we know it's difficult for our schools to provide the best education possible.
That's why I enrolled my children in Gilroy Prep Charter School, a Navigator school that achieved the highest API score -- 978 -- in California for a first-year charter school in 2011-12. I also served on the Navigator Board for three years but recently resigned due to transparency and accountability concerns with the Charter Management Organization (CMO), a service some charters use to manage their finances.
Now I find that my concerns were not an aberration. A recent study by the Center for Popular Democracy (linked with this article at mercurynews.com/opinion) found mismanagement of funds, fraud and abuse to the tune of $80 billion, or $160,000 per child, across all California charter schools, and our state could lose another $100 million in 2015 to charter school fraud. That's enough money to pay full tuition and board for every student in California at a University of California school for four years.
The report found that charter schools in California undergo little monitoring of finances, and the districts that oversee charter schools do not have the resources to provide sufficient oversight. Over my three years on the Navigator board, the local districts only attended seven board meetings.
Charter schools were created to bridge the achievement gap by granting increased freedom to administrators, teachers and parents to innovate without being subject to most California education laws. I support charter schools and think many of them provide an excellent education: 60 percent of Santa Clara County charter schools outperform the districts in which they reside. As a former entrepreneur and venture investor, I am all for freedom, innovation, competition and choice.
But the charter school financial model is at risk of failing.
Charter Management Organizations use public money with little public accountability and transparency, and that's starting to cause material financial problems. Not all charter schools have a CMO and run very well on their own, and some CMO-run charter schools are clearly better than others.
In 2014, charter schools authorized by the Santa Clara County Board of Education received $42 million in public revenue, excluding the millions of dollars in philanthropic investments. Some CMOs charge the schools they manage up to 25 percent of school revenue, while our local district charges about 6 percent per school.
In Santa Clara County, 73 percent of charter schools spent $1,287 less per student than their district school peers in 2012-2013. That's worth a musical instrument, computer, books, iPad and field trip per child. Where does the money go? It's not clear, and that's a problem.
To avoid financial risks, charter schools should be held to the same types of regulations as other public schools and the boards that oversee them. All public schools should be given the same freedoms charter schools have to innovate.
My wish is that all public schools be excellent educational institutions and stewards of our tax money. However, we must improve transparency and accountability. I think this is a wish we can all agree on.
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Spa mayor seeks to ban gun, ammo sales at City Center
Spa mayor seeks to ban gun, ammo sales at City Center
The city is considering a ban on the sale of guns and ammunition at the City Center, Mayor Meg Kelly announced Saturday...
The city is considering a ban on the sale of guns and ammunition at the City Center, Mayor Meg Kelly announced Saturday in a welcoming speech to Local Progress New York.
Read the full article here.
Equal pay is widely understood to be a feminist issue — so why isn't the Fight for $15?
Equal pay is widely understood to be a feminist issue — so why isn't the Fight for $15?
The idea that men and women should receive equal pay for equal work is probably among the least controversial feminist...
The idea that men and women should receive equal pay for equal work is probably among the least controversial feminist positions because, in 2017, it's pretty difficult to argue against.
Hollywood actresses like Patricia Arquette have traded in their standard acceptance speeches for impassioned calls for wage equality, while Facebook COO Sheryl Sandberg created a whole new brand of feminism when she began coaching women on how to combat workplace inequality by "leaning in," making equal pay part of a mainstream dialogue...
Read full article here.
Protesters Demand a Voice in Selection of Next President of Philadelphia ‘Fed’
CBS Philly - December 15, 2014, by Steve Tawa - Just as the Federal Reserve is about to hold a key policy meeting in...
CBS Philly - December 15, 2014, by Steve Tawa - Just as the Federal Reserve is about to hold a key policy meeting in Washington, DC, a group of activists is calling for a more transparent process to replace Charles Plosser, president of the Federal Reserve Bank of Philadelphia.
The group, which staged a march this morning from Independence Hall to the Federal Reserve at Sixth and Arch Streets, says the Fed’s replacement process is dominated by major financial firms and corporations.
Members of Action United, the Philadelphia Unemployment Project, and Pennsylvania Working Families say there are no community, labor, or consumer representatives on the board of directors of the Philadelphia Fed, so working folks are shut out of the process.
They are part of a grass-roots coalition across the country that met last month with Federal Reserve chair Janet Yellen, demanding that the central bank hear the concerns of ordinary Americans as it prepares to raise interest rates.
Who are those ordinary Americans?
“The unemployed, the underemployed, the working and barely-working working class,” says Kendra Brooks of Action United.
“We just need some people at the Fed to step up and pay attention to us,” adds Chris Campbell (far right in photo), a graduate of Orleans Technical Institute who has been doing multiple odd jobs to scrape together income.
Dawn Walton, who had been one day away from becoming a permanent worker with benefits at a local auto dealership when she was laid off after 89 days, said, “And now (we’re) out here pounding the pavement with millions of other people. It looks like there’s no way out.”
While the unemployment rate has declined to a six-year low, the activists challenge the Fed to visit poorer neighborhoods in Philadelphia and elsewhere before raising rates, because many are not experiencing a recovery.
Plosser, the Philadelphia Fed president since 2006, was among those known as a “hawk” for casting dissenting votes against the Fed’s prolonged low-rates policies.
The Philadelphia Fed says it is following a process for the selection of the bank’s next president outlined by Congress, and its senior executives have met with representatives of groups who have expressed interest in the process.
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