Ballot fight probable over higher Arizona minimum wage
Ballot fight probable over higher Arizona minimum wage
PHOENIX — Backers of a proposal to raise the state’s minimum wage to $12 an hour by 2020 claim they’ve already got...
PHOENIX — Backers of a proposal to raise the state’s minimum wage to $12 an hour by 2020 claim they’ve already got more than half the signatures they need, potentially setting the stage for an expensive fight with restaurants and other businesses.
Tomas Robles said Tuesday the campaign he is heading has 90,000 signatures in hand. But he conceded it will likely need far more than the minimum of 150,642 names on petitions by the July 7 deadline to ensure the measure goes on the November ballot.
Robles said the group has at least $200,000 to supplement its volunteers with paid circulators to more than meet the goal.
That would provide voters the first opportunity to update the law they approved in 2006, which created a $6.75-an-hour state minimum wage the first year, when the federal government said employers could pay as little at $5.15.
With inflation adjustments required by voters, Arizona’s minimum wage is now $8.05 an hour versus the $7.25 federal minimum. Presuming 2 percent inflation per year between now and the end of the decade, Arizona’s figure still would be below $9.
The 2016 initiative contains something new: A requirement for paid sick leave of 40 hours a year for employees of companies with 15 or more workers. For smaller firms, the paid time off would be 24 hours.
One thing will be different this year than a decade ago. At that time the business community, confident a state like Arizona would never vote to increase wages, didn’t bother to mount a campaign against the 2006 initiative. The result was a blowout, with the measure passing by a margin of close to 2-1.
Glenn Hamer, president of the Arizona Chamber of Commerce and Industry, said Tuesday that business interests won’t make that mistake again.
“I would expect you’d see a very strong response to this, and a very broad response from chambers, major trade associations like the (Arizona) Restaurant Association to fight this should it qualify (for the ballot),” he said.
Hamer said the change would be particularly damaging for small businesses, which would be forced to provide immediate wage increases that could amount to $3 an hour.
He said that is coming on top of increased costs for health insurance for firms that provide such benefits to their workers. “Some simply won’t be able to survive,” he said.
But proponents are hoping to counter that by building a coalition of small businesses that say they can live with a $12 minimum wage.
At Tuesday’s news conference, one of the members, Stephanie Vasquez, owner of Fair Trade Coffee in Phoenix, detailed her support.
“I deeply believe that as an entrepreneur and as a human being that people should be treated with respect and dignity,” she said. Vasquez said the majority of her staffers already are being paid more than the $12 the initiative would mandate.
Arizona’s current $8.05 minimum wage translates to $16,744 a year.
For a single person, the federal government considers anything below $11,880 a year to be living in poverty. That figure is $16,020 for a family of two and $20,160 for a family of three.
Robles, former executive director of Living United for Change in Arizona, said that organization has put $200,000 into the campaign, much of it from a grant from The Center for Popular Democracy, an organization involved in efforts to establish a $15 minimum wage nationally. Campaign-finance reports also show $25,000 from The Fairness Project, which is working to push states to set minimum wages.
By Howard Fischer
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Lawsuit: Arizona Minimum-Wage Initiative Stiffed Petition Firm for $65,000
Lawsuit: Arizona Minimum-Wage Initiative Stiffed Petition Firm for $65,000
An Arizona employer is stiffing a small-business owner on a completed job, affecting dozens of low-income employees....
An Arizona employer is stiffing a small-business owner on a completed job, affecting dozens of low-income employees.
Sounds like the kind of greedhead Arizonans for Fair Wages and Healthy Families is targeting with its campaign to raise the minimum wage, right?
Wrong — the employer is Arizonans for Fair Wages and Healthy Families. The campaign refuses to pay the last $65,000 of a $965,000 bill to Sign Here Petitions, the company that hired the people who gathered the signatures that put the measure on this November's general-election ballot.
Sign Here owner Bonita Burks sued the campaign on September 21 to recover the balance due. In the meantime, Burks says, she has been unable to distribute final paychecks to the 45 to 50 petition gatherers she hired to get Prop 206 onto the ballot.
It's not as if the minimum-wage campaign can't afford to pay Burks, a Maricopa resident who has owned her own business for 12 years. Though the campaign ran short of money over the summer, its spokesman, Bill Scheel, confirms that Arizonans for Fair Wages expects to receive an influx of $1.5 million in donations any day now.
Scheel says the campaign intentionally shorted Burks' company because it didn't do its job well enough, resulting in tens of thousands in unexpected expenses.
If Arizona voters approve the minimum-wage measure in November, the state's minimum wage would go up to $10 an hour next year and rise to $12 in 2020. Waitresses and others who expect tips would see their wages increase from $5.05 to $7 by 2017, and to $9 by 2020. The ballot initiative also mandates that workers can take between three and five days of earned sick leave annually.
Much of the money for the campaign has come from out-of-state donors as part of a national effort by activists and labor unions. Living United for Change in Arizona (LUCHA), the largest donor, is itself being funded by the Washington, D.C.-based Center for Popular Democracy. The Commercial Workers union Region 8 States Council and California-based Fairness Project are also major contributors.
As New Times reported in August, a member of the political-strategy firm hired by the campaign, Javelina, loaned the campaign $100,000 after it ran short of cash while defending itself from a legal challenge that could have kicked the measure off the ballot.
Scheel, a cofounder of Javelina and spokesman for the campaign, said in August that he gave the campaign the loan on August 4 to cover unexpected expenses from a legal challenge by the Arizona Restaurant Association.
The restaurant owners behind the ARA, an influential organization led by Steve Chucri, one of five Maricopa County supervisors, doesn't want to see minimum wage go up and sued the campaign in an attempt to deny voters the right to decide the question. The ARA's lawyers argued that many of the campaign's signature gatherers were felons or had filled out their forms incorrectly, meaning tens of thousands of signatures should have been tossed. The workers are typically paid $3 to $5 for each signature they collect.
The ARA identified up to 85,000 signatures they claimed were no good, and expected to find even more invalid ones. At least 150,642 valid signatures were needed out of the 271,883 turned in by the campaign.
Yet before a deeper probe of the campaign's signature-gathering process occurred, Maricopa County Superior Court Judge Joshua Rogers dismissed the ARA's complaint because it hadn't been filed on time. The Arizona Supreme Court upheld the ruling on appeal.
The campaign had apparently run out money before the lawsuit was filed, though. On July 19, about two weeks after the July 7 deadline to turn in signatures to the state, Sign Here and the campaign — represented by Scheel — drew up a one-page amendment to their original contract. In the amendment, Burks made clear that the campaign owed $186,884.60 and would assess a late fee of $1,000 per day starting on July 18.
The campaign "understands and agrees that the final invoice amount is requires for [Burks] to pay individuals already-earned monies," the contract states, adding that if Burks is sued by the signature gatherers, the campaign will cover the costs.
Scheel signed the amended contract.
About a month later, Burks says, Scheel promised falsely that the money was on the way.
Burks provided New Times with a screenshot that shows a text exchange with Scheel on Friday, August 19:
"Bill, Please send me a text once the wire has been. Thank you," Burks texted.
"The wire has been initiated," Scheel texted back.
But the following Monday, the money had not materialized in Sign Here's account.
"Sorry," Scheel informed Burks in another text. "We have been on conference calls with the national funders all morning. We've been instructed to hold off any further wires till after the Supreme Court rules on the appeal, which we hope will be Friday."
The state Supreme Court upheld Rogers' ruling on August 30, clearing its final hurdle to make the ballot.
Scheel says Sign Here invoiced the campaign a total of $965,000, of which the campaign paid $900,000.
"We paid 93 percent of everything that was due," he says.
The campaign contracted with Sign Here for more than just making the ballot, he argues: "It was about making sure circulators were qualified. She promised 80 percent validity — it came in at barely 50 percent. That's not acceptable."
The lawsuit cost the campaign $70,000 in legal fees, and Burks' company "nearly put the campaign in jeopardy," he says.
Scheel admits that he doesn't know whether Judge Rogers would have thrown out enough signatures to void the measure, had the ARA's challenge been filed on time.
"No one ever did the math on our side," he says.
But that isn't the issue, Scheel maintains. Burks didn't properly vet the signature gatherers, which cost the campaign $70,000 by leaving a potential vulnerability for the ARA to exploit.
The campaign recouped $33,500 of the legal fees via a settlement with the ARA, Scheel says. Arizonans for Fair Wages could have asked for up to $55,000 in legal fees, but decide to settle rather than prolong the fight, he says.
Scheel also confirms, as he told New Times in August, that the campaign is about to receive $1.5 million in donations from its national backers to pay for marketing and promotion of the measure in the final weeks before the election. Some of that money has already trickled in, he says, and the campaign has used it to pay 15 of the signature gatherers who haven't received checks from Sign Here.
Burks did such a poor job, Scheel says, that according to the campaign's calculations, she owes the campaign $35,000.
Gathering signatures for a ballot initiative can be a good way to make extra money, typically paying between $3 and $5 per signature.
Gathering signatures for a ballot initiative can be a good way to make extra money, typically paying between $3 and $5 per signature.
"She's a small-businessperson who unfortunately and sadly dropped the ball," he says.
Burks says she's upset and frustrated by the situation. Signature gatherers keep contacting her, asking when they'll get their last checks.
"They're hurting bad," she says. "My phone's blowing up every day."
By her account, adding in the $1,000-a-day late fee, Arizonans for Fair Wages now owes her company $143,000.
"I'm standing firm: You owe the money, you need to pay it," she says.
Burks says she doesn't have the money to pay the petition gatherers the remainder of what they're owed and says she made "no profit" on the project. Campaign officials took advantage of Sign Here to make a strong final push to collect more signatures before the July 7 deadline, even though they were broke at the time, she adds.
"They told me in the last week: Get as many as you can because our volunteer efforts suck," she says. The workers came up with an additional 35,000 signatures.
"My team and I, we worked so hard in the 120-degree heat," she says. "I was paying bonuses. I haven't made one damned dime on it. I really wanted to see it happen, for the people."
At least one signature gatherer is suing Burks in Maricopa County Justice Court.
Donna Fox worked for Sign Here before returning home to Kingsport, Tennessee. She has been staying in Scottsdale for the past couple of weeks, making the nearly 2,000-mile trip to resolve the issue.
Fox says her work for Sign Here was impeccable, and that Burks' company owes her $1,320 for her last week's work. She is suing for three times that amount, as allowed under state law.
She could probably make a deal to get her money from Arizonans for Fair Wages, Fox says. "But I don't trust them."
Even if she wins her suit, Fox says she's not sure whether she'll ever see her money. But she's hoping Burks wins her suit against the campaign, which Fox believes treated Sign Here badly.
"This is like Donald Trump strategy," Fox says of Arizonans for Fair Wages. "You can do the work, but we're not paying you. They don't walk the walk they're talking. This is nothing more than business for them."
As for Burks, with whom Fox says she shares a friendly, albeit contentious, relationship: "I chew her out all the time. I tell her she's a complete shithead because she led people to believe the check was in the mail."
The campaign offered to settle the suit for $32,500, Burks says, but she turned them down because it wouldn't cover the money she owes to the petition gatherers.
"My circulators really need their money to pay rent and put food on the table," Burks says. "I believe Arizona Fair Wages just don't care about the people who worked so hard to get their issue on the ballot."
By BY RAY STERN
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Protester shouts at Sen. Jeff Flake in elevator: ‘Tell me it doesn’t matter’
Protester shouts at Sen. Jeff Flake in elevator: ‘Tell me it doesn’t matter’
A protester who said she was sexually assaulted approached Senator Jeff Flake in an elevator Friday after he released a...
A protester who said she was sexually assaulted approached Senator Jeff Flake in an elevator Friday after he released a statement saying he would be voting in favor of Brett Kavanaugh for a seat on the Supreme Court.
Read the article and watch the video here.
Dimon Says He'll Look Into Concerns About Private Prison Financing
Dimon Says He'll Look Into Concerns About Private Prison Financing
Jamie Dimon said JPMorgan Chase & Co. will look into investors’ concerns about whether the bank should continue to...
Jamie Dimon said JPMorgan Chase & Co. will look into investors’ concerns about whether the bank should continue to help finance private prisons.
The chief executive officer came under fire Tuesday at the company’s annual meeting for the bank’s role in financing debt for companies including the Geo Group Inc. and CoreCivic Inc., which operate privately-owned prisons and immigrant detention centers. Some investors and protesters urged JPMorgan to end its relationship with such firms, arguing that they make money off human suffering and violate immigrants’ rights.
Read the full article here.
Toys ‘R’ Us Workers Face Harsh Reality in Quest for Severance
Toys ‘R’ Us Workers Face Harsh Reality in Quest for Severance
“Historically, Toys “R” Us has offered generous severance to workers, which is part of why it should be forced to offer...
“Historically, Toys “R” Us has offered generous severance to workers, which is part of why it should be forced to offer payments to workers now," said Carrie Gleason, campaign manager for the worker advocacy group Rise Up Retail. That group helped organize a petition calling for Bain, KKR, and Vornado to give the $470 million they had received in interest and fees from the retailer over the years to employees that were let go after the company foundered. KKR told Congress earlier this month it was seeking a way to help former Toys “R” Us employees outside of bankruptcy.
Read the full article here.
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.
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Fed district that includes Charlotte announces new president
Fed district that includes Charlotte announces new president
The Federal Reserve Bank of Richmond, which monitors large banks in a district that includes Charlotte, announced a new...
The Federal Reserve Bank of Richmond, which monitors large banks in a district that includes Charlotte, announced a new president on Monday.
Thomas Barkin, chief risk officer for consulting firm McKinsey & Company, assumes the Fed role Jan. 1. He replaces Jeffrey Lacker, who abruptly retired this year after acknowledging he had improperly discussed sensitive information involving Fed policy with an analyst.
Read the full article 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.”
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Ady Barkan launches new campaign asking everyone to “Be A Hero”
Ady Barkan launches new campaign asking everyone to “Be A Hero”
Activist Ady Barkan, who is fighting ALS, is starting a new fight - to get people to vote. He’s asking people to “Be A...
Activist Ady Barkan, who is fighting ALS, is starting a new fight - to get people to vote. He’s asking people to “Be A Hero” and vote for candidates who protect healthcare. Ady tells Ali Velshi that with all the challenges he faces that if he can get out and vote, everyone can.
Watch the video here.
New Report Cites $100 Million-plus in Waste, Fraud in Charter School Industry
A new report by two groups that oppose reforms that are privatizing public education finds fraud and waste totaling...
A new report by two groups that oppose reforms that are privatizing public education finds fraud and waste totaling more than $100 million of taxpayer funds in 15 of the 42 states that operate charter schools.
The report, titled “Charter School Vulnerabilities to Waste, Fraud, & Abuse,” and released by the nonprofit organizationsIntegrity in Education and the Center for Popular Democracy, cites news reports and criminal complaints from around the country that detail how some charter school operators have illegally used public money. It also makes policy recommendations, including a call for stopping charter expansion until oversight of charter operators is improved. Released during National Charter School Week, it notes that despite rapid growth in the charter industry, there is no agency at the federal or state level that has the resources to provide sufficient oversight.
The Obama administration has supported the spread of charter schools but has also called for better oversight. Proponents of charter schools say they provide choices for parents and competition for traditional public schools, but critics note that most don’t perform any better — and some of them worse — than traditional public schools and take resources away from school districts. Some critics see the expansion of charter schools as part of an effort by some school reformers to privatize public education.
The report details cases from state after state, among them:
*In Washington D.C.:
In the fall of 2008, the U.S. attorney’s office issued a subpoena for school financial records related to L. Lawrence Riccio’s “alleged criminal activities” at the School for Arts in Learning (SAIL). Known internationally for his work in the education of youth with disabilities, Riccio founded the Washington, DC charter school in 1998, but by 2007, a memo by a financial consultant to SAIL’s former chief financial officer describes complete disarray of financial matters. Though grant money had been flowing in, staff members were not allowed to purchase supplies, rent went unpaid, and funds from one Riccio-led organization paid expenses for another. Financial statements showed that SAIL and sister organizations paid a $4,854 credit card bill to cover Mr. Riccio’s travel -related expenses in Scotland, as well as membership dues and dinner tabs at the University Club, a premier private club. SAIL covered expenses for travel to Boston, Denver, Houston and New Orleans; grocery stores, drugstores, wine and liquor stores and flower shops, cafes and restaurants, a salon and spa, Victoria’s Secret and at a glass, paint and wallpaper shop in France, where Mr. Riccio and his wife maintain a private residence.
and
Former leaders of Options Public Charter School are under Federal investigation for possible Medicaid fraud and other abuses. They are accused of exaggerating the needs of the disabled students, bilking the federal government for Medicaid funds to support their care, and creating a contracting scheme to divert more than $3 million from the schools for their own companies, including a transportation company that billed the Federal government for transporting students to the school, but apparently offered gift cards to students to increase ridership on the buses. Additionally, a senior official at the D.C. Public Charter School Board allegedly received $150,000 to help them evade oversight.
*In Ohio:
Ohio Auditor of State Dave Yost, speaking about nearly $3 million in unsubstantiated expenses amassed by the Weems Charter School, said: “This is a heck of a mess…Closed or not, the leadership of this school must be held responsible, and the money must be returned to the people of Ohio.”
* In Wisconsin:
In 2008, Rosella Tucker, founder and director of the now-closed New Hope Institute of Science and Technology charter school in Milwaukee, was convicted in federal court of embezzling $300,000 in public money and sentenced to two years in prison. Tucker acknowledged taking U.S. Department of Education money intended for the school, which she started through a charter agreement with Milwaukee Public Schools. She spent about $200,000 on personal expenses, including cars, funeral arrangements and home improvement, according to court documents. Tucker has argued that the remainder of the money she received was legitimate reimbursement for school-related expenses. Tucker embezzled the $300,000 from 2003 to 2005. The Milwaukee School Board voted to close New Hope Institute of Science and Technology in February 2006, amid problems that included unpaid bills and lack of appropriate teacher licensure.
* In California:
Steven A. Bolden pleaded guilty on January 2, 2014 to stealing more than $7.2 million worth of computers from a government program. Between 2007 and 2012, Bolden invented more than a dozen education non-profits, including fake charter schools, to benefit from a General Services Administration program that gives surplus computer equipment to public schools and non-profits. In July 2012, a GSA undercover investigator was contacted by Palmdale Educational Development Schools, one of Bolden’s organizations, and sent Bolden 9 laptop computers, which Bolden sold via Craigslist.
Here’s the report:
Charter School Vulnerabilities to Waste, Fraud, & Abuse
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