Some Retailers Promote Decision to Remain Closed on Thanksgiving
New York Times - November 14, 2014, Steven Greenhouse - This...
New York Times - November 14, 2014, Steven Greenhouse - This Thanksgiving, the open-versus-shut debate has grown even louder.
Walmart, Kmart, Macy’s, Target, RadioShack and many other major retailers are proclaiming that they will be open on Thanksgiving Day to make shoppers happy. But Costco, Marshalls, GameStop and T. J. Maxx are riding the backlash against holiday commerce by boasting that they will not relent: They will remain closed that day to show that they are family-friendly and honoring the holiday.
But even as retailers vie for every dollar during a very competitive season, Tony Bartel, the president of GameStop, views this debate as open-and-shut. “For us, it’s a matter of principle,” said Mr. Bartel, whose company has 4,600 stores nationwide. “We have a phrase around here that we use a lot — it’s called ‘protecting the family.’ We want our associates to enjoy their complete holidays.”
“It’s an important holiday in the U.S., and our employees work hard during the holiday season, and we believe they deserve the opportunity to spend Thanksgiving Day with their family and friends,” said Richard A. Galanti, executive vice president and chief financial officer at Costco Wholesale, the nation’s second-largest retailer after Walmart. “We’ve never opened on Thanksgiving, and when the trend to do so occurred in the last couple or three years, we chose not to because we thought it was the right thing to do for our employees.”
More than two dozen major retail chains plan to stay dark on Thanksgiving, including Barnes & Noble, Bed Bath & Beyond, the Burlington Coat Factory, Crate and Barrel, Dillard’s, Nordstrom, Neiman Marcus and Patagonia.
Johan Araujo, a senior game adviser at GameStop’s flagship store in Herald Square in Manhattan, applauded his company’s decision. “It’s good to know they’re thinking about us and what we want,” he said. His plans involve cooking the turkey for his fiancée and friends this year.
Sidney Bartlett, the manager of Mr. Araujo’s store, said that when the store used to be open on Thanksgiving — it started closing for the holiday last year — it was painful to figure out which employees to inconvenience and schedule to work that day. “I thought it’s great the C.E.O. decided to close for the holiday,” he said.
He said it saddened him to see so many stores open that day. “We’ve shifted as a nation — it’s not so much about the family, it’s all about business,” said Mr. Bartlett, who is studying for an M.B.A. at Columbia.
“We don’t believe we will lose any ground to competitors,” said Mr. Bartel, the company’s president. “Even if we lose some ground to competitors, we are making it corporate principle — we have committed to associates that we will not open on Thanksgiving.”
Pushed by competitive forces, some malls are opening on Thanksgiving Day for the first time. In Paramus, N.J., Westfield Garden State Plaza and Paramus Park will open from 6 p.m. to 11 p.m., prodded by Macy’s decision to open its stores in those malls.
Walden Galleria, a mall with over 200 stores near Buffalo, threatened to fine retailers about $200 an hour if they don’t open at 6 p.m. on Thanksgiving Day.
Carrie Gleason, director of the Fair Workweek Initiative, a campaign pushing retailers to adopt schedules that are more friendly to workers, said, “What’s different from years past is there are more and more retailers coming out publicly and saying, ‘We’re staying closed on Thanksgiving.’ ” They want to demonstrate to their customer base that they’re family-friendly.”
More than 55,000 people have signed a petition on change.org urging Target to remain closed on Thanksgiving, while the Boycott Black Thursday Facebook page has more than 87,000 likes.
Walmart officials say they are doing consumers a favor by opening on Thanksgiving. To reduce the long lines that have upset many shoppers on Black Friday, Walmart announced on Tuesday that it would spread Black Friday over five days.
“It became Black Friday, then it became Thursday, and now it’s becoming weeklong,” said Duncan Mac Naughton, chief merchandising officer at Walmart. “Maybe it’s going to be November.”
Deisha Barnett, a Walmart spokeswoman, said many shoppers were happy that the company would be open on Thanksgiving. “We’re in the service industry, and we’re just like airports and grocery stores and gas stations that are open on Thanksgiving so they can provide what customers need,” she said. “We’ve been open on Thanksgiving for 20-something years.”
Walmart will again face a wave of protests this holiday season. Our Walmart, a union-backed group of Walmart workers pushing for higher pay, said on Friday that it would hold protests at 1,600 Walmarts on Black Friday.
After keeping almost all its stores closed last Thanksgiving, the financially troubled RadioShack said that it planned to open its stores from 8 a.m. to midnight this Thanksgiving. But after some employees voiced dismay, the company changed course to give them time for their feast. Its stores will open from 8 a.m. to noon, close for five hours and reopen from 5 p.m. until midnight, and again at 6 a.m. on Friday.
The University of Connecticut Poll conducted a survey last November that found that nine out of 10 Americans said they didn’t plan to spend Thanksgiving hunting for bargains, while 7 percent said they planned to visit stores on Thanksgiving Day.
The poll of 1,189 adults, with a margin of sampling error of plus or minus 3 percent, found that 49 percent disapproved of stores opening on Thanksgiving Day, with 16 percent approving and 34 percent neutral.
Last Thanksgiving, J. C. Penney, Kohl’s, Macy’s, Sears and Target all opened at 8 p.m. This year, Kmart plans to open at 6 a.m. and remain open for the next 42 hours.
“All these companies were closed for decades,” said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union. “What’s changed is that some have chosen to remain open, and those companies should be getting demerits. People should ask, ‘Is this the sort of society we want to live in that people aren’t even given the option of celebrating holidays?’ ”
He said that if stores decided to open on Thanksgiving, working that day should be voluntary, not mandatory. He said many part-time workers were eager to work on Thanksgiving.
Mr. Appelbaum praised the Macy’s store in Herald Square for using only workers who volunteer to work that day
Macy’s plans to open at 6 p.m. this Thanksgiving, two hours earlier than last Thanksgiving — and Sears is doing the same thing. “Customer response to the 8 p.m. opening last year was exceptionally strong,” said Jim Sluzewski, Macy’s senior vice president for communications. “At Macy’s Herald Square store, we had 15,000 customers waiting outside when the doors opened. The experience was similar across the country. Many customers asked why we couldn’t open a little earlier.”
In contrast, he said Bloomingdale’s, a Macy’s subsidiary, would remain closed on Thanksgiving Day, saying it was “less promotional” than Macy’s.
Roger Beahm, executive director of the Center for Retail Innovation at Wake Forest University, said it was smart competitively for retailers to open on Thanksgiving. “Did the folks who questioned the sanctity of Thanksgiving learn a lesson?” he said. “A good start to the holiday retail season can really make your year, and a late start can really cripple retailers.”
Dan Evans, a spokesman for Nordstrom, said his company kept its stores closed on Thanksgiving, with a few employees completing holiday decorations that day, before they are unveiled on Black Friday.
“If our customers really wanted us to open on Thanksgiving, that’s what we’ll do,” Mr. Evans said. “We used to be closed on the Fourth of July. We used to be closed on New Year’s Day, but customers wanted us to be open on those days, so now we’re open on those days. Our customers guide us. We don’t guide them.”
Source
Here's How The #AbolishICE Movement Really Got Started
Here's How The #AbolishICE Movement Really Got Started
"The demand to abolish ICE has existed almost since the beginning of ICE," Ana Maria Archila, co-executive director of...
"The demand to abolish ICE has existed almost since the beginning of ICE," Ana Maria Archila, co-executive director of the Center for Popular Democracy, told Refinery29. "Since its creation, there were organizations that were saying that the inclusion of ICE as an agency that is designed specifically to separate families, put people in detention, to deport them is a dangerous development in the way we as a country relate to migration."
Read the full article here.
Mysterious "Computer Glitch" Conveniently Cancels Hotel Rooms For Fed Protesters At Jackson Hole Event
Mysterious "Computer Glitch" Conveniently Cancels Hotel Rooms For Fed Protesters At Jackson Hole Event
Over the last two years, the Fed Up Campaign has routinely brought a coalition of low-wage workers to Jackson Hole,...
Over the last two years, the Fed Up Campaign has routinely brought a coalition of low-wage workers to Jackson Hole, Wyoming to protest Federal Reserve hike rates amidst the unequal “economic recovery.” The Jackson Hole event is invite only, closed to the public and costs $1,000 per person to attend.
It appears that this year, Janet Yellen and company went out of their way to ensure there would be no such protests diverting the attention of the nation's most esteemed economists.
According to a formal complaint filed by Ady Barkan, the Campaign Director for the Fed Up Campaign, to the DOJ and the Department of the Interior, “In early May, members of our coalition made three separate reservations for a total of 13 rooms at the Lodge for the nights of August 24, 25, and 26. We paid for the rooms. We requested and paid for rollaway beds that would allow us to sleep three guests to a room, for a total of 39 guest accommodations.
On July 26, my colleague Ruben Lucio received a phone call and then a follow-up email from Zachary Meyers, the Director of Hotel Operations at the Company, informing us that the Company would not honor our paid-for reservations and we could no longer stay at the Lodge. Meyers informed Lucio of a “reservations system glitch that caused the overbooking of Jackson Lake Lodge affecting your reservations” and explained that “the system issue caused us to take reservations for rooms that we don’t actually have inventory to honor. I’m very sorry for the unfortunate mishap with our systems at GTLC that led to this regrettable situation.”
The complaint also states that of the 18 rooms that were affected by the supposed “glitch,” all 13 rooms that were allocated to the Fed Up Coalition were coincidentally all cancelled. Of course, the hotel denied any knowledge that these rooms were protesting the oligarchs at the Fed.
“There is no legitimate explanation for the Company’s decision. As Klein explained to me, the Company books out its conference and sleeping rooms on a first-come first-serve basis. However, faced with an alleged computer glitch that affected only the three nights we were present, the Company decided to honor reservations made after ours and cancel our reservations. Our reservations constituted only 3 percent of the rooms at Jackson Lake Lodge (13 out of 385), yet the Company decided that our group would bear 72 percent of the total burden for its mistake (13 rooms out of 18 overbooked reservations). This is egregious disparate treatment.
In addition, Klein’s stated rationale for selecting our 13 rooms for cancellation is an explicit and intentional targeting of our First Amendment right to assemble on government property: he selected us precisely because we are a group of multiple guests. Because we were arriving in groups of 5, 5, and 3 rooms, we would not be allowed at the Lodge. (Yet Klein notably did not remove rooms from the reservation block belonging to the Kansas City Federal Reserve, even though its block was far larger than ours and would have been even “easier” to cancel.)”
According to the Intercept, the Fed Up coalition is still planning to attend the conference. “They still expect 120 members, their largest contingent ever, to attend the proceedings, but they will have to stay in alternative accommodations that are a 20- to 30-minute drive away, separate from symposium guests and the press.”
We are sure that the Fed, already criticized for its lack of diversity, had no say in this mysteriously convenient “glitch.”
By Tyler Durden
Source
The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
The Fed needs a revolution: Why America’s central bank is failing — and how we can make it work for us
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a...
One reality hanging over the presidential election and our politics in general is this: No matter what terrific plan a politician has for creating jobs and boosting wages, it must contend with the Federal Reserve’s ability to unilaterally counteract it. If the Fed decides higher wages risk inflation, they can raise interest rates and deliberately strangle economic growth, reversing the wage effect. Why come up with ways to grow the economy, then, if the Fed will react by intentionally slowing it?
The reason the Fed operates as a wet blanket on the economy has to do with who really controls the institution. If the desires of bankers and the rich outweigh the desires of laborers, then their fear of inflation (which cuts into their profits) will always take precedence over full employment. Former Fed Chair Ben Bernanke unwittingly gave a perfect example of that yesterday. Talking about how the Fed could institute “helicopter drops” of money to supplement federal spending and jump-start the economy, he stated from the outset, “no responsible government would ever literally drop money from the sky.” Who sets the boundaries of what’s “responsible” matters a great deal here.
To make the central bank work in the public interest rather than the interests of a select few, you must reform the very structure of the Federal Reserve. That’s the purpose of a new proposal from Andrew Levin, an economics professor at Dartmouth College and former advisor to Fed Chairs Ben Bernanke and Janet Yellen. In conjunction with the activist group Fed Up, which advocates for pro-worker policies at the Fed, Levin has devised a framework to make the central bank a fully public institution, with all the transparency and accountability demanded of other government entities.
It’s such an important idea that Warren Gunnels, policy director for Bernie Sanders’ presidential campaign, talked it up yesterday on a conference call with Levin. While stopping short of endorsing taking the Fed public, Gunnels did say, “Senator Sanders believes we need to made the Fed a more democratic institution, responsive to the concerns of all Americans, not a few billionaires on Wall Street.”
Right now, the Fed is a quasi-public, quasi-private hybrid, taking advantage of that status to maintain high levels of secrecy. Members of the Federal Reserve Board of Governors are nominated by the President and confirmed by the Senate, like other federal agencies. But the twelve regional Federal Reserve banks are legally owned by commercial banks in each of those regions. Banks like JPMorgan Chase and Wells Fargo hold stock in these regional banks, which happen to be one of their primary regulators.
This was how central banks worldwide operated at the time of the Fed’s founding, but that has changed. “Every other central bank around the world is fully public,” Professor Levin said, citing the Bank of Canada’s shift in the 1930s and the Bank of England in the 1940s.
Not only does having private banks own a chunk of the Fed raise questions about regulatory supervision, it implicitly privileges banker concerns over the public at large. This is particularly important because the Fed has failed as an institution consistently over the past decade.
First it failed to identify an $8 trillion housing bubble, along with increases in leverage and derivatives exposure that magnified the housing collapse into a larger crisis. Then, it failed to deploy all its policy tools and allowed a slow recovery to take hold that left millions of workers behind, as growth never caught up to its expectations. British economist Simon Wren-Lewis believes the third big mistake is happening now, through premature interest rate hikes to return to “normal” operations. “Central banks are wasting a huge amount of potential resources” by tightening too quickly, Wren-Lewis says. For everyday Americans, that translates into millions more people out of work than necessary.
So Levin’s plan would cash out the banks’ stock, and begin to remove their influence over the Fed. The board of directors of the regional Fed banks, which currently includes commercial bank executives, would be chosen through a representative process with mandates for diversity (no African-American has ever served as a regional Fed president) and a variety of viewpoints. Nobody affiliated with a financial institution overseen by the Fed could serve on any regional board.
These newly elected boards of directors would choose the regional presidents, which have a say on monetary policy decisions. That selection process would include public hearings and feedback. Under the current system, Fed presidents are re-elected through a pro forma process, with no opportunity for public engagement. Four of the 12 regional presidents were formerly executives at Goldman Sachs, and it’s hard to call that a coincidence.
In addition to breaking the conflict of interest inherent in current Fed governance, making the institution public would subject it to disclosure requirements, Freedom of Information Act requests, and external reviews that all other public agencies must submit to. Levin’s proposal calls for an annual Government Accountability Office review of Fed policies and procedures, and would allow the Fed’s inspector general new authority to investigate the regional banks.
The Levin proposal too often makes concessions to preserving central bank “independence,” like preserving the regional structure and giving Fed officials nonrenewable seven-year terms, which seems a little arbitrary. This impulse also led Democrats to reject Sen. Rand Paul’s legislation to audit the Fed earlier this year. The rhetoric of Federal Reserve “independence” conceals an institutional capture that allows it to ignore workers’ needs in favor of the wealthy. And its persistent failures and banker influence weaken the case for that independence.
Nevertheless, the heart of the proposal is to return democracy to the Fed, so the institution will edge away from its commitment to capital over labor. “The fundamental piece is that the Fed must be a public institution,” said Ady Barkan of the Fed Up Coalition.
Liberals too often ignore the Fed and the role it plays in the economy, but that’s starting to change. An obscure piece of the Federal Reserve Act statute identified by then-House staffer Matt Stoller led to a remarkable cut of billions of dollars in subsidies to big banks last year, under a Republican-majority Congress. Now the Fed Up coalition is not only rolling out this reform plan, but pushing the presidential candidates to answer whether the Fed should deliberately slow down the economy, make sure their institution looks like the general public, and reduce the power of private banks on its operations. (Bernie Sanders laid out his views on Fed reform in the New York Times last December, some of which intersect with the Fed Up proposal. Warren Gunnels, Sanders’ Policy Director, would only say that the Fed Up plan “deserves serious consideration.”)
A public, inclusive debate over Fed transparency and accountability is critical, given the importance of this institution to the economy. “These reforms would put the Fed on a path to serving the public for the next 100 years,” said Professor Levin. And that has to mean all the public, through democratic principles, not just the executives at our biggest banks.
By David Dayen
Source
Chicago's minimum wage fight officially kicks off with $15 proposal
Crain's Chicago Business - May 27, 2014, by Greg Hinz - Ending months of preliminaries, a group of 10 or more Chicago...
Crain's Chicago Business - May 27, 2014, by Greg Hinz - Ending months of preliminaries, a group of 10 or more Chicago aldermen tomorrow is expected to introduce legislation to bring a $15 minimum wage to Chicago.
But at least for now, the measure faces a very uphill road, with Mayor Rahm Emanuel believed to favor some increase but not one of that size.
News of tomorrow's development came from Ald. Roderick Sawyer, 6th, who in a conference call with reporters today said that the measure raising the rate from the current $8.25 statewide figure would be phased in over time.
Mr. Sawyer did not provide further details but suggested that small businesses might be given more time to adapt than large companies.
He said "about 10" aldermen will co-sponsor the ordinance, most of them members of the City Council's progressive caucus. Another member of that group, Rick Munoz, 22nd, said he believes that, once introduced, the measure eventually will get support "in the high teens."
"In the high teens" is not enough to pass a bill in the 50-member City Council, where 26 votes are needed for a majority.
Mr. Emanuel last week appointed eight other aldermen to a panel that will recommend within 45 days how much to hike the minimum wage.
In announcing that move, the mayor did not say how much the wage should go up, only that it should rise because "Chicagoans deserve a raise." But, given Mr. Emanuel's extensive backing from business as he nears re-election, my suspicion is that he will end up favoring a hike that's less than that pushed by the Sawyer group. That would allow Mr. Emanuel to present himself as a moderate of sorts — someone who's for the working person but not an extremist.
Mr. Sawyer's announcement came at an event at which Raise Chicago, an advocacy group, released a report suggesting that a $15 minimum wage would bring substantial benefits.
Specifically, it said, the hike would boost wages in the city by a collective $1.5 billion, stimulating economic activity that would create 5,300 new jobs and $43 million in new tax revenue, while slashing job turnover rates "as much as 80 percent."
The move for an increase in the Illinois minimum wage is stalled, at least for now, but the issue has become a very hot subject nationally.
Source
Yellen Says Improving Economy Still Faces Challenges
The Washington Post - August 22, 2014, by Ylan Q. Mui - Federal Reserve Chair Janet L. Yellen on Friday expressed...
The Washington Post - August 22, 2014, by Ylan Q. Mui - Federal Reserve Chair Janet L. Yellen on Friday expressed growing confidence that America’s market is improving but uncertainty over how much further it has to go.
Yellen began her remarks before a select group of elite economists and central bankers here by enumerating the unequivocal progress made since the Great Recession ended: Job growth has averaged 230,000 a month this year, and the unemployment rate has fallen to 6.2 percent after peaking in the double digits during the depths of the crisis.
But she quickly transitioned to the challenges in determining how close the labor market is to being fully healed — and how much the nation’s central bank should do to speed its convalescence. Although Yellen has consistently emphasized that the recovery is incomplete, her speech Friday focused on the difficulty of making a current diagnosis.
“Our understanding of labor market developments and their potential implications for inflation will remain far from perfect,” Yellen said at the annual conference sponsored by the Federal Reserve Bank of Kansas City. “As a consequence, monetary policy must be conducted in a pragmatic manner.”
The Fed slashed its target for short-term interest rates to zero and pumped trillions of dollars into the economy in the aftermath of the recession. More than five years later, it is finally scaling back that support. The Fed is slated to end its bond-buying program in October and is debating when to raise interest rates.
That decision carries enormous consequences: Move too soon, and the Fed risks undermining the economic progress made so far. Move too late, and it could risk stoking inflation in the future and sowing the seeds of the next financial crisis.
Investors generally expect the Fed to raise rates in the middle of next year, but several central bank officials gathered here cautioned that the moment could come earlier if the recovery improves more rapidly than expected. Yellen gave no clear timeline Friday but called for a “more nuanced” reading of the labor market as the economy returns to normal.
For example, the size of the nation’s workforce unexpectedly declined after the recession, the result of both demographic factors and unemployed workers who gave up hope of finding a job. Yellen reiterated Friday that a stronger economy could help stem that drop and suggested it may already be working. She also said that the run-up in involuntary part-time work and the low level of people choosing to quit their jobs could be reversed as the labor market improves.
But Yellen seemed to shift her stance on the country’s stagnant wage growth. Previously, she has cited it as a sign that the labor market remains weak. But on Friday she called on research that suggests wage growth has been subdued because employers were unable to cut salaries deeply enough during the recession, a phenomenon dubbed “pent-up wage deflation.” She also suggested that globalization and the difficulty that the long-term unemployed face in finding jobs could also be depressing wage growth.
The uncertainty facing the Fed means it will be carefully evaluating economic data over the coming months, Yellen said. And she said the central bank will remain nimble in its response.
“There is no simple recipe for appropriate policy in this context, and the [Fed] is particularly attentive to the need to clearly describe the policy framework we are using to meet these challenges,” she said.
Central bankers were not the only ones gathered in the Grand Tetons this year. Several workers and activists also traveled to Jackson Hole and called on the central bank to be cautious in removing its support for the economy, the first protest at the conference in recent memory.
The grass-roots group, organized by the Center for Popular Democracy, also issued an open letter to the Fed earlier in the week signed by more than 60 activist organizations. Kansas City Fed President Esther L. George — one of the most vocal proponents of raising interest rates soon — met with the protesters in Jackson Hole on Thursday for about two hours to hear their stories. Ady Barkan, senior attorney at the Center for Popular Democracy, said the groups plan to request meetings with other Fed officials as well.
Source
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.
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
Wells Fargo’s at the Bottom of the Heap
BeyondChron - March 14, 2013, by Christina Livingston - When it comes to foreclosing on Californians, it looks like...
BeyondChron - March 14, 2013, by Christina Livingston - When it comes to foreclosing on Californians, it looks like Wells Fargo may take the prize. According to a report released this week, Wells Fargo is responsible for more homes in the foreclosure pipeline in California than any other single lender.
Wells Fargo is servicing the most loans, but they are providing less principal reduction to struggling borrowers than either Bank of America and Chase – who themselves should be doing more! Wells Fargo trails behind Bank of America and Chase when it comes to the amount of principal reduction given with first lien loan modifications, according to the Monitor of the multi-state Attorneys General settlement with the five big mortgage servicers.
This is the very same Wells Fargo that just had its most profitable year ever in 2012, with earnings of $19 billion.
The report, California in Crisis: How Wells Fargo’s Foreclosure Pipeline Is Damaging Local Communities, by ACCE (Alliance of Californians for Community Empowerment), the Center for Popular Democracy and the Home Defenders League, shows the harm coming to homeowners, communities and the economy unless Wells Fargo reverses its course and averts some or all of the impending foreclosures.
Click here to download the report.
The report uses data from Foreclosure Radar to look at loans currently in the foreclosure pipeline in California – meaning loans that have a Notice of Default or Notice of Trustee Sale. Of the 65,466 loans in the foreclosure pipeline, close to 20% of them are serviced by Wells Fargo.
If Wells Fargo’s 11,616 distressed loans go through foreclosure, California will take a next $3.3 billion hit: Each home will lose approximately 22 percent of its value, for a total loss of approximately $1.07 billion; homes in the surrounding neighborhood will lose value as well, for an additional loss of about $2.2 billion; and government tax revenues will be cut by $20 million, as a result of the depreciation.
And not surprisingly, African American and Latino communities will be particularly hard-hit. The report includes maps for seven major cities showing minority density and dots for each of Wells Fargo’s distressed loans. In city after city, they are heavily clustered in neighborhoods with high African American and Latino populations.
“My community has been absolutely devastated by the foreclosure crisis, and I put a lot of the blame at the doorstep of Wells Fargo,” says ACCE Home Defenders League member Vivian Richardson. “Wells Fargo’s heartless and unfair foreclosure practices are sending far more homes into foreclosure than is necessary.”
“Our communities and our entire State are still reeling from the housing crisis, and will be for years to come,” said San Francisco Supervisor David Campos. “As this report shows, the numbers of homes still facing foreclosure is enormous. Principal reduction is clearly a critical strategy for saving homes and stabilizing the economy. Wells Fargo and the other major banks should be doing more of it.”
The report recommends:
1. Wells Fargo should commit to a broad principal reduction program. This means that every homeowner facing hardship should be offered a loan modification, when Wells has the legal authority to do so. The modification should be based on an affordable debt-to-income ratio, achieved through a waterfall that prioritizes principal reduction and interest rate reductions. Junior liens must also be modified.
2. Wells Fargo should report data on its principal reduction, short sales, and foreclosures by race, income, and zip code. Wells Fargo must be more transparent about its mortgage practices. The bank has an egregious history of harming California’s African American and Latino communities through predatory and discriminatory lending. To show the public that it has reformed, Wells Fargo must make this data available. The people of California need to know that Well Fargo is no longer discriminating against people of color and is fairly and equitably providing relief to homeowners and to the hardest hit communities.
3. Wells Fargo should immediately stop all foreclosures until the first two demands are met In the event that it takes a few months to set up a fully functioning principal reduction program, Wells Fargo needs to immediately stop all foreclosures. Wells Fargo has done enough harm. It’s time to stop. California deserves a break.
ACCE is waging a campaign to push Wells Fargo to be a leader in California, their home state, in saving homes – beginning with their performance to comply with the Attorneys General Settlement and with the Homeowner Bill of Rights, but not ending there.
Click here to sign on to a letter to Wells Fargo CEO John Stumpf to support the campaign demands.
Author info: Christina Livingston is the Executive Director of the Alliance of Californians for Community Empowerment. ACCE is a multi-racial, democratic, non-profit community organization building power in low to moderate income neighborhoods to stand and fight for social, economic and racial justice. ACCE has chapters in eleven counties across the State of California. For more information visit http://www.calorganize.org/ or follow ACCE on twitter@CalOrganize
Source
Why it’s hard to legislate good corporate behavior
San Francisco, the country’s premier laboratory for new Internet services, is also used to innovating in municipal...
San Francisco, the country’s premier laboratory for new Internet services, is also used to innovating in municipal regulation.
But in its latest experiment, it’s starting to find that legislating good corporate behavior isn’t as easy as pressing a button on your smartphone.
In July, the city started implementing a first-in-the-nation law aimed at curtailing the trend towards “just-in-time” scheduling, where managers call in employees to work on short notice. The new measure requires large chain retailers— such as Safeway and Walgreen’s — to publish schedules at least two weeks in advance, and to compensate employees with “predictability pay” if they make changes less than a week ahead of time. It also mandates that additional hours be offered to existing employees first before new hires are made, and that part-time workers be paid at the same rate as people who work full-time.
So far, it’s been easier to publish schedules than live up to the spirit of the law.
"The two-week notice seemed to be instituted right away, but the other stuff is lagging,” says Gordon Mar, director of San Francisco Jobs With Justice, a labor-backed group that pushed for the “Retail Workers Bill of Rights” and has been monitoring its implementation.
The sluggish response may be because fines don’t kick in until Oct. 3; the city is still hashing out the rules. But the spotty compliance so far highlights the difficulty of attempts to mandate worker-friendly practices — especially the kind that touch the most fundamental aspects of business operations, rather than those that simply require higher pay and better benefits.
San Francisco employers fought the new ordinance, but couldn’t prevent its passage. Now, they complain it’s impacting service.
“We’re hearing from members in San Francisco that it really is not working well at all,” says Ronald Fong, president of the California Grocers Association. Stores can’t always predict surges in foot traffic, which might be brought on a sunny day, leaving managers without the option to bring in more staff. That was a problem during the heat wave that swept over San Francisco this summer.
"Supplies weren’t able to get out to the shelves,” Fong says. "It just kind of snowballed, and our customers have a bad experience, or the stores lose sales.”
Some businesses don’t mind the rules in principle, but object to the red tape. "Everybody pretty much operates on a predictive schedule,” says Bill Dombrowski, president of the California Retailers Association. “But the process of implementing this, with offering the employees hours in writing and waiting three days for a response, it’s a lot of government intrusion into very minute detail.”
Also, not all industries schedule their workers in the same way. Milton Moritz is president of the National Association of Theatre Owners’ California and Nevada chapter, and says the theater business is by nature unpredictable, making the new law particularly difficult to comply with.
“We might not know until the Monday before the Friday a film shows, and even then we’re hiring, firing, scheduling people based on the business that film’s going to do,” Moritz says. “This ordinance flies in the face of all that. It really complicates the issue tremendously.”
The San Francisco ordinance hasn’t just been irritating for big companies. Some workers grumble the law discourages employers from offering extra shifts on short notice, because they would have to pay the last-minute schedule change penalty — even if workers would be happy for the chance to pick up more hours.
Rachel Deutsch, a senior staff attorney with the Center for Popular Democracy who has been helping local jurisdictions across the country craft fair-scheduling legislation, says that’s something that might change in future iterations.
"I think that’s the thing with any policy where it’s the first attempt to solve a complicated economic problem,” Deutsch says. "It’s been a learning process.”
So far, fair scheduling laws aren’t spreading as quickly as minimum wage and paid sick leave laws. A statewide bill in California failed a couple weeks ago, and no other local ordinances have passed besides San Francisco’s, though there are active campaigns in several cities including Minneapolis and Washington D.C.
Meanwhile, several companies have acted on their own to curb some of the practices that workers have found most disruptive, like on-call shifts, where workers have to be available even if they aren’t ultimately asked to work. But in some cases — like that of Starbucks, which committed to eliminating many of those practices — those voluntary changes haven’t been any more effectivethan government mandates.
Erin Hurley worked at Bath & Body Works and campaigned for an end to on-call shifts. After she left the job, parent company L Brands said it would stop the practice at Bath & Body Works as well as another of its chains, Victoria’s Secret. But Hurley says she’s heard from current workers that managers are still doing effectively the same thing, by asking employees to stay a little longer.
“On-call shifts were replaced with shift extensions,” says Hurley. “Basically what L Brands did was change the name of the practice.” Keeping people on-call is very convenient for employers, and letting it go can be easier said than done. (L Brands did not respond to a request for comment.)
Still, advocates in San Francisco think the Retail Workers Bill of Rights has already done some good, and will be more effective when the city’s enforcement kicks into high gear — just like overtime rules did, when companies got used to obeying them.
Take Michelle Flores, 21, who has worked part time at Safeway for two years to support herself while in going to college. Unpredictable schedules made that difficult: She would only know her shifts a few days beforehand, which sometimes didn’t leave her enough time to hit the books.
"I would study from midnight until 5, 6 a.m., sleep for two or three hours, and then go to the exam,” says Flores, 21, who attends San Francisco State. This year, she expects that to change. "If I know that I have a shift scheduled, I’ll just study another day,” Flores says.
Also, the law came with some funding for community organizations to make employees aware of what workers are entitled to. That has ancillary effects — like getting people interested in joining a union, which can be better equipped to make sure companies are following the rules.
“It just creates an opportunity to talk to more workers about their rights under the law, and that leads to conversations about other issues in the workplace,” says Gordon Mar, of Jobs with Justice. “And that could lead to getting organized.”
Source: Washington Post
1 month ago
1 month ago