Think The Minimum Wage Will Be Safe Under Labor Secretary Puzder? Not So Fast.
Think The Minimum Wage Will Be Safe Under Labor Secretary Puzder? Not So Fast.
This year was supposed to be a good one for America’s workers. After all, nearly 12 million workers won higher wages in...
This year was supposed to be a good one for America’s workers. After all, nearly 12 million workers won higher wages in 2016, the result of sustained and coordinated efforts around the country. There’s a catch though: if these wages aren’t enforced, American workers will never even see them.
And despite widespread support, state and local lawmakers and business communities have already begun threatening to not comply with the wage hikes. In Maine, Governor Paul LePage ordered his administration to stop enforcing a minimum wage hike that 60 percent of his state’s residents voted for, telling employers who violate the law that they would be off the hook.
At the other end of the country in Flagstaff, Arizona, 54 percent of city residents backed a $15 minimum wage in elections last year, but business groups are fighting to move enforcement from a local authority to a state commission, which would likely delay the processing of claims. The state as a whole has backed higher wages, approving a proposition to raise the state’s minimum to $12 by 2020 last year.
In the face of such attacks at the city and state level, it’s imperative to have a federal Labor Department committed to ensuring that workers aren’t cheated out of their wages - wages not only earned through hard work but also guaranteed by law.
This won’t be the case if Andy Puzder becomes Labor Secretary. As chief executive officer of CKE Restaurants, the parent company of Carl’s Jr. and Hardee’s, Puzder consistently flouted basic labor standards.
Puzder, whose confirmation hearing has already been put off multiple times, could easily fail to enforce the wage increases that prevailed in referendums throughout the country, and he’s likely to put even the existing protections we have in jeopardy - including the minimum wage, which currently stands at a paltry $7.25.
It’s the proverbial fox guarding the hen house, a term that we seem to be asserting with every cabinet appointee, but that rings even more true with Puzder.
Just last week, CKE Restaurants was hit with nearly two dozen charges of stealing wages. Multiple workers said they had worked for weeks without seeing a paycheck. One was only paid after he stopped coming to work in protest.
CKE has also come under fire for paying employees with pre-paid debit cards that incur fees on certain ATMs, in effect shorting employees their full paycheck.
If Puzder runs the Labor Department like he runs his company, these kinds of abuses will be allowed to flourish nationwide – and workers will lose one of their most important outlets for addressing their concerns.
For working Americans, it could be a disaster of epic proportions
And CKE is far from the only chain that regularly skirts labor laws. In fact, wage theft runs rampant across the restaurant industry, as well as retail and other low-paying service jobs. A National Employment Law Project study found that more than two-thirds of low-wage workers in New York City, Chicago and Los Angeles had experienced wage theft in the previous workweek. The Economic Policy Institute in 2014 calculated that wage theft cost Americans as much as $50 billion every year
Some states, realizing the scope of the problem, have taken steps to improve oversight in recent years. In New York, 2010 workers won the strongest protections against wage theft in the country. After passage of a significantly higher minimum wage last year, Governor Cuomo followed up with a 200-person task force to ensure wages are being paid.
Yet state action can only do so much. The Department of Labor sets standards for wage enforcement around the country and is the front-line agency for filing many wage theft cases. A 2009 Government Accountability Office report found that weak oversight during the Bush years had left thousands of workers stranded with nowhere to turn.
We have made too much progress to turn back now. Taking the teeth out of oversight hurts workers and hurts the overall economy. Members of Congress need to make clear that Puzder’s persistent record of wage theft disqualifies him from the job of Labor Secretary – and, if Puzder is confirmed, states must show that they are willing to stand up for workers on their own.
By JoEllen Chernow
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Scaffold Law Debate Heats Up Over Dueling Reports on Safety and Costs
Legislative Gazetter - April 21, 2014, by Matthew Dondiego - A new report released last Thursday by a pro-labor, pro-...
Legislative Gazetter - April 21, 2014, by Matthew Dondiego - A new report released last Thursday by a pro-labor, pro-immigrant rights advocacy group criticizes the construction industry for using what they call misleading figures and cherry picking data to lobby against the state's controversial "scaffold law."
The scaffold law is a century-old law in place to protect worker's rights. Under the law, contractors and property owners serving as contractors are responsible for providing a safe work environment for their employees or become liable for any on-site injuries and accidents.
Opponents of the law point out that contractors are fully liable for workers' injuries even if it is determined the worker is at fault. Opponents say it is outdated and causes construction costs to rise due to the increased costs of insurance premiums. Supporters of the law say it provides common sense protection for workers performing a dangerous job and maintain that contractors are not held liable in court if proper safety precautions are in place.
The new report, titled Fatally Flawed and released by the Center for Popular Democracy, which is supported financially by the New York State Trial Lawyers Association and labor unions, is a scathing criticism of a Rockefeller Institute study — which is frequently referenced by the construction industry — that concluded the scaffold law resulted in an additional 667 work site injuries and adds about $3 billion in additional costs to construction projects in New York state each year.
According to last week's report, the oft-cited Rockefeller Institute study is "fundamentally biased" and calls the New York Civil Justice Institute, which paid $82,800 to commission the Rockefeller study, "a poorly-disguised front group" for the construction industry aligned Lawsuit Reform Alliance of New York. According to the report, the Lawsuit Reform Alliance of New York and the New York Civil Justice Institute share the same address, 19 Dove St, Suite 201, Albany, N.Y., and the same telephone and fax numbers.
"This [Rockefeller Institute] study was bought and paid for by the construction industry," Josie Duffy, a staff attorney for the Center for Popular Democracy. "This is a direct result of people who do not like the scaffold law for business reasons, paying for this report to be released."
On the claim that the scaffold law contributed an additional 667 injuries, the report says the Rockefeller Institute "confuses correlation with causation."
This claim, according the Center for Popular Democracy, is based on worker injury rates in "sub-sectors and non-construction industries," such as warehouse work, transportation, roofing, residential building construction, manufacturing, wholesale trade and utilities industries, and are compared to the rest of the nation.
"The authors assert that these differences are greater in New York and attribute these greater differences entirely to the scaffold law," the new report reads. "There is simply no basis to conclude that the scaffold law is the cause of these differences. Indeed, the authors provide no justification for comparing injury rates in construction with injury rates in less hazardous industries, or using those differences as a proxy for the impact of the scaffold law."
Duffy bluntly says that the scaffold law does not cause an increase in workplace accidents. She says the Rockefeller Institute's study, which was released in February, lacks factual evidence that the law makes work sites more dangerous and "that number is coming from nowhere."
"To me, that is the most egregious part of this whole report," Duffy said.
Despite the strong words used in the report and by Duffy, Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, says that the Rockefeller report "conclusively" found the law made construction sites more dangerous for workers.
He said that absolute liability for contractors creates "perverse incentives" for workers.
"Workers are not incentivized because they are never held responsible and contractors are not incentivized because they are guilty in nearly every circumstance," Stebbins said. "Only by apportioning liability to fault, as is done in every other state and every other part of our civil justice system, can we maintain balance and improve safety."
According to Stebbins, the report released by the Center for Popular Democracy last week is a "political hit piece, with no statistical merit or actual research of any kind. They cannot get researchers to back up their opinions, because the facts do not support the scaffold law."
Stebbins argues that absolute liability causes the insurance markets to treat sites with sterling safety records the same as companies with less stringent safety precautions. Opponents of the scaffold law say that absolute liability holds the company liable for the worker injuries regardless of who is actually found to be at fault.
Duffy however, said that companies are not automatically found to be liable for injuries sustained by workers on construction sites and are typically safe from injury-related costs so long as they had the proper safety precautions in place.
"What absolute liability means is that you have to pay for the costs of the injuries … and that's only going to happen if you're breaking the law," she explained. "What this law says is there has to be some level of protection for workers."
According to Duffy, under the law companies still hold the right to argue their case in court and they are not automatically found responsible for every injury.
"It's important that employers get to have their voices heard in law, I support that this law allows people to get their voices heard on both sides and that's a very, very real protection," she said "Nothing happens automatically in this law and you can't even be taken to court unless your breaking the law in the first place."
The report also criticizes the Rockefeller Institute for failing to take into consideration certain conditions in New York that may affect the injury rates in the state. Such measures include New York generally has more high-level construction works which may drive up injury rates and New York construction workers are more likely to be union workers and therefore are more likely to report injuries. According to the report, Texas has one of the lowest construction injury rates yet is among the highest in construction fatality rates.
According to the report, "Such low-injury-rate states have artificially suppressed the US injury rate, which the paper nonetheless compares to the New York rate."
"This is a law that protects construction workers. Construction workers are doing a really difficult job and they're doing it every day and they are growing our economy," Duffy said. "Construction workers are literally the bread and butter of what makes New York City, New York City … and this is a state of construction."
Assemblyman Francisco Moya, a Democrat from Queens, said the Center for Popular Democracy's report "injected some truth into the politically-charged debate surrounding the scaffold law."
"Many untruths have been lobbed at the scaffold law in an attempt to dismantle it. This report makes clear that those untruths have unfortunately been crafted by parties who have a financial interest in watering down workplace protections," Moya, a staunch supporter of the law, said in an e-mail. "When it comes to life and death decisions about workplace safety, there's no room for politics. It has to be about facts. And the fact is that the Scaffold Law protects workers. That's the real bottom line."
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The End of On-Call Scheduling?
Retailers have been ...
Retailers have been under intense pressure from labor groups, regulators, and their own employees to end on-call scheduling—the practice in which shift workers are called to work on short notice, and are often uncompensated if it turns out to be a slow day. On Friday, New York attorney-general Eric Schneiderman’s office announced that J.Crew will end on-call scheduling nationwide this month. The retailer joins Urban Outfitters, Abercrombie & Fitch, Bath & Body Works, Gap, and Victoria’s Secret, which all have announced changes since Schneiderman’s office launched an inquiry into the practice at over a dozen companies.
“After discussion with my office, J. Crew has agreed to end on-call shifts nationwide and to provide one week of advance notice about schedules to employees at all New York store locations,” said Schneiderman in a statement. “Workers deserve protections that allow them to have a reliable schedule in order to arrange for transportation to work, to accommodate child-care needs, and to budget their family finances.”
This is the sixth agreement Schneiderman has reached with a major retailer. In April, the New York attorney-general’s office sent letters to 13 retailers asking for information regarding their scheduling policies: “We have been informed that a number of companies in New York State utilize on-call shifts and require employees to report in some manner, whether by phone, text message, or email, before the designated shift in order to learn whether their services are ultimately needed on-site that day,” said the letter.
The letter expresses concern that the practice might be in violation of a state regulation that employees who report for work must be paid for at least four hours (or the number of hours in a regular shift) of work. It cites the financial and personal strains for workers without predictable schedules—from being unable to work another job or attend school, to the strains of finding childcare last minute. Further, a report by the Economic Policy Institute found that the lowest income workers face the most irregular work schedules.
A spokesperson for Gap Inc. confirmed that all five brands—The Gap, Banana Republic, Old Navy, Intermix, and Athleta—has phased out on-call scheduling globally by the end of September.* L Brand—the parent company for Victoria’s Secret and Bath & Body Works—also confirmed that they have ended the practice nationwide.
Gap is also working on a pilot project with Joan Williams, a professor and director of the Center for WorkLife Law at the University of California Hastings College of Law, and Susan Lambert, a professor at the University of Chicago who studies scheduling issues, on new ways to stabilize worker schedules. Lambert’s researchfound that 64 percent of food-service workers and half of retail workers receive less than a week’s notice for shifts.
For now, the shift away from on-call scheduling seems to be only gaining momentum: Earlier this week, Forever 21 was hit with a lawsuit from a former employee over unpaid on-call scheduling. And, for the seven remaining companies that Schneiderman’s office contacted (the identities of which are unknown), such momentum may soon be overpowering.
Source: The Atlantic
Don't Raise Rates, Protesters Tell St. Louis Fed
St. Louis Post-Dispatch - March 5, 2015, by Jim Gallagher - About a dozen chilly protesters gathered outside the...
St. Louis Post-Dispatch - March 5, 2015, by Jim Gallagher - About a dozen chilly protesters gathered outside the Federal Reserve Bank of St. Louis on Thursday to complain that the Fed may soon make it harder to find work.
The Federal Reserve is widely expected to raise interest rates later this year, a move intended to prevent inflation in years hence. The protesters complained that higher interest rates can also cut off the jobs recovery.
The Fed represents “the 1 percenters,” said Derek Laney, an organizer with Missourians Organizing for Reform and Empowerment. “They are the big banks, the big corporations, and their mandate is to keep inflation low at all costs.”
People at the bottom of the economic ladder would trade some inflation for jobs, he said.
The protesters complained that the Fed has set a target for inflation at 2 percent — slightly above the current inflation rate — but has no target for reducing unemployment.
Rising rates tend to slow an economic rebound eventually, although there is usually a long lag.
The protest was timed for release of a report by three national advocacy groups, including the Economic Policy Institute, the Center for Popular Democracy and Fed Up: The National Campaign for a Stronger Economy.
The report complained that the boards of the Fed's 12 regional banks, which influence national decisions, are heavy on banking and business executives, but light on representatives of other citizens, such as labor and clergy.
The boards also don't fully reflect their community's racial mix, the report said. For instance, the St. Louis Fed's board is 10 percent black while its multi-state region is 17 percent black, according to the report.
The Federal Reserve Bank of St. Louis did not immediately provide a comment.
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Opioid protest at Harvard art museum
Opioid protest at Harvard art museum
ctivists said that this was the fourth protest of its kind targeting an art gallery or school named after the Sackler...
ctivists said that this was the fourth protest of its kind targeting an art gallery or school named after the Sackler family. The Sacklers have their names on spaces at the Louvre, the Royal Academy of Arts, the Smithsonian, and the Guggenheim in New York, among others. The Center for Popular Democracy, the nonprofit that supports the Opioid Network, also participated in Goldin’s protest at the Smithsonian Institution’s Arthur M. Sackler Gallery in April.
Read the full article here.
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.
NYC and Seattle seek 'fair workweek' legislation for fast-food workers
NYC and Seattle seek 'fair workweek' legislation for fast-food workers
Municipal leaders and labor activists nationwide who fought for a $15 minimum wage now want to serve up a “fair...
Municipal leaders and labor activists nationwide who fought for a $15 minimum wage now want to serve up a “fair workweek” and steady hours for fast-food workers.
New York City Mayor Bill de Blasio set a plan in motion last week to give 65,000 hourly workers in the city's fast-food industry more stable work schedules by requiring a two-week notice for employee shift assignments. City Council members have vowed to introduce the legislation in the coming weeks.
In Seattle, the City Council on Monday gave its unanimous approval to a similar ordinance, which will affect well-known retail and food service establishments, as well as certain full-service restaurants. Mayor Ed Murray is scheduled to sign the ordinance into law by next week.
While supporters of such proposals – called “secure scheduling” in Seattle – say working families need protection against erratic work schedules, some retail organizations argue these concerns have been blown out of proportion. The Washington Retail Association said the Seattle ordinance would make work schedules less flexible.
“The effects of the law threaten to reduce available work hours for retail employees, reduce hiring opportunities and impose burdensome bookkeeping and fines on retailers deemed to be in violation of the law,” the retail association said in a news release.
Other business groups, however, don’t see the scheduling legislation as a major burden for employers. Mark Jaffe, chief executive officer of the Greater New York Chamber of Commerce, told AMI Newswire that the proposal is fair and that it wouldn’t cause fast-food eateries to go out of business.
“How hard is it to schedule people two weeks in advance?” he said.
A number of citywide initiatives, from affordable housing to reasonable transportation options, have helped New York City maintain a productive workforce, Jaffe said, and the Fair Workweek legislation would do the same. “We don’t believe it’s an unreasonable burden on the employer,” he said. “This is a no-brainer.”
The proposal was directed toward fast-food workers because that’s where most of the scheduling concerns originate, Jaffe said. Many of those employees need to map out their schedules in advance because they often work more than one job, he said.
The New York State Restaurant Association expressed concern about the proposed legislation but hopes it can work with city officials to reduce the burden to its members.
“It’s troubling that fast-food restaurants, which are really a local franchisee-run small business, have been singled out yet again when these restaurants are already being subjected to greater regulations than any other industry,” said the restaurant association’s chief executive officer, Melissa Fleischut, in a prepared statement. “Labor costs for quick-serve restaurants are skyrocketing, and under state law the hospitality industry is already subject to call-in pay and extra pay for a longer-than-10 spread of hours in a single day.”
In addition to providing employees a two-week notice on work schedules, the New York City proposal would force employers who make last-minute schedule changes to pay extra compensation to affected workers. The plan would also place restrictions on the practice of what’s called “clopening” – when an employee is required to work a closing shift followed by an opening shift.
“We will regulate that practice and require that there be at least 10 hours between a closing shift and an opening shift that a worker has to perform,” de Blasio said during a public announcement last week.
The mayor dismissed anticipated concerns about layoffs resulting from the proposal, saying that he heard the same rumblings when the city was moving to expand paid sick leave for workers. “Guess what happened?” de Blasio said. “This city has added 290,000 private-sector jobs.”
Jan Teague, chief executive officer of the Washington Retail Association, said in a prepared statement that the Seattle proposal could limit the ability of businesses to take part in the city’s Summer Youth Employment Program and make it more difficult for college students to find temporary jobs over the summer and during holidays.
Teague has also expressed concern that employers would end up paying higher “predictive pay” to workers in order to fill shifts resulting from a worker calling in sick or quitting abruptly.
“Any way you slice it, this ordinance will make the workplace less flexible to meet the needs of employees and employers,” Teague said during the debate over the Seattle measure. “Sadly, this ordinance will reduce the number of hours available for many retail and restaurant employees – and they cannot afford to see their incomes go down.”
In addition, she took issue with the idea of discouraging time allotments between shifts of less than 10 hours. Some workers want to have shifts close together during part of the week to free up time later for second jobs or helping to care for a family member, Teague said.
The National Retailers Association took a similar position. “Government intervention in the scheduling of employees through a one-size-fits-all approach intrudes on the employer-employee relationship and creates unnecessary mandates on how a business should operate,” the association said in a statement on its website.
Despite such concerns, the pro-worker advocacy group Center for Popular Democracy predicted that the victory for secure scheduling in Seattle would encourage other cities to follow suit.
“Those working in Seattle’s retail, restaurant and coffee chains will no longer have to turn their lives upside down just to earn enough hours to survive – and they will finally gain a greater voice in how much and when they work,” the center’s director of the Fair Workweek Initiative, Carrie Gleason, said in a prepared statement. “We can expect the vote in Seattle will inspire other cities to act.”
By Michael Carroll
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Newark Police first in N.J. to refuse to detain undocumented immigrants accused of minor crimes
The Star-Ledger – August 15, 2013, by James Queally - The Newark Police Department has become the first law enforcement...
The Star-Ledger – August 15, 2013, by James Queally -
The Newark Police Department has become the first law enforcement agency in New Jersey to refuse the federal government’s requests to detain people accused of minor crimes who are suspected of being in the U.S. illegally, according to immigration advocates.
In enacting the policy, Newark becomes the latest city to opt out of the most controversial part of the “Secure Communities” program implemented by the U.S. Immigration and Customs Enforcement Agency in 2011, which allows the agency to ask local police to hold any suspect for up to 48 hours if their immigration status is called into question.
In the past two years, cities and states across the nation, including New York City, Chicago, Los Angeles, Massachusetts and Connecticut, have adopted similar policies. Earlier this week, Orleans Parish sheriffs also said they will stop honoring the detainer requests.
“Secure Communities” was designed to enhance ICE’s ability to track dangerous criminals who are undocumented immigrants. Under the policy the Department of Homeland Security reviews fingerprints collected by local police during an arrest, which then allows ICE to issue the detainer requests. Immigration advocates, however, argue the policy has been misused, leading to the deportation of people accused of low-level offenses and inhibits collaboration between police and people who are undocumented.
Udi Ofer, the executive director of the state chapter of the ACLU, said Newark’s policy was a collaborative effort between the city, the ACLU and several immigrants rights groups.
“With this policy in place, Newark residents will not have to fear that something like a wrongful arrest for a minor offense will lead to deportation,” said Ofer. “It ensures that if you’re a victim of a crime, or have witnessed a crime, you can contact the police without having to fear deportation.
Newark Police Director Samuel DeMaio signed the directive on July 24. Newark will no longer comply with ICE requests to hold suspects accused of crimes like shoplifting or vandalism.
City police will continue to share fingerprint information with federal investigators, according to DeMaio, who said the department received only eight detainer requests in 2012.
“If we arrest somebody for a disorderly persons offense and we get a detainer request we’re not going to hold them in our cell block,” he said. “I don’t know if we’ve ever gotten a detainer request on a guy with a misdemeanor.”
An ICE spokesman declined to comment directly on the policy. But immigrants rights advocates hailed the move as an olive branch to undocumented immigrants, who often hesitate to cooperate with police who are investigating serious crimes in their community for fear of deportation.
That fear has been evident in a series of community meetings in the Newark’s immigrant-heavy Ironbound neighborhood, which began after “Secure Communities” was implemented in New Jersey last year, said East Ward Councilman Augusto Amador.Amador has been present for a number of those sessions, and said the culture of fear created by the program stopped many undocumented immigrants from reporting crimes committed against them in the area.
“I agree totally with the policy,” he said. “The Newark Police Department already has enough problems to worry about, rather than being involved with matters that don’t belong to them.”
A representative for Mayor Cory Booker’s administration said the policy is a smart move that strengthens ties with city residents and maintains a relationship with ICE.
“The Newark Police Department’s policy improves community relations, while saving taxpayer money and ensuring that city, state, and federal officials continue to share critical information needed to prosecute criminals and keep our streets safe,” said city spokesman James Allen.
Nisha Agarwal, deputy director of the Center for Popular Democracy, said ICE has misused the “Secure Communities” policy in other areas, and Newark’s directive will slowdown the agency if it attempts to start deportation proceedings against someone for a small-scale offense.
“They often will (issue) detainers in cases where it’s really minor, when the person is not a threat to society in any way,” she said.
New Jersey has one of the country’s largest immigrant populations and the state is home to more than 500,000 undocumented immigrants, according to Amy Gottlieb, director of the American Friends Service Committee. Gottlieb said she hopes to see other New Jersey law enforcement agencies echo Newark’s policy.
“Any detainer policy where people are aware that the police department is acting in support of the immigrant community is going to be helpful for police and immigrant relations,” she said.
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First meeting of Trump’s voting commission makes clear that suppression is the goal
First meeting of Trump’s voting commission makes clear that suppression is the goal
Vice President Mike Pence claimed during the first meeting on Wednesday of the White House’s Commission on Election...
Vice President Mike Pence claimed during the first meeting on Wednesday of the White House’s Commission on Election Integrity that the group will go about its work with “no preconceived notions.” Just minutes later, commissioners took turns insisting there is mass fraud across the country that could influence elections.
Kansas Secretary of State and commission co-chair Kris Kobach claimed in his introduction that as many as 18,000 non-citizens could be registered to vote in Kansas, without mentioning the shady math and questionable studieshe used to arrive at that number. The Heritage Foundation’s Hans von Spakovsky insisted that massive fraud is occurring across the country. And even New Hampshire Secretary of State Bill Garder, a Democratic commissioner, argued against making voting easier, saying it doesn’t require a massive amount of fraud to influence elections.
Read the full article here.
Warren allies demand answers from Clinton on Wall St. ties
“On behalf of our nine million supporters across the country, we are writing to request more information about your...
“On behalf of our nine million supporters across the country, we are writing to request more information about your positions regarding the revolving door between Wall Street and the federal government,” reads a statement backed by Democracy For America, Rootstrikers, CREDO Action, MoveOn.Org Political Action, the Center for Popular Democracy Action, The Other 98%, Friends of the Earth Action, and American Family Voices.
The missive, which comes as Clinton interrupts her Hamptons vacation to unveil her rural policy platform in Iowa on Wednesday, specifically notes that Clinton has yet to support or comment on Sen. Tammy Baldwin’s Financial Services Conflict of Interest Act. Progressive icon Sen. Elizabeth Warren — who has ties to many of those who signed the letter — has encouraged all presidential candidates to back the legislation, as both Bernie Sanders and Martin O’Malley have done.
“These types of ‘golden parachute’ compensation packages are highly controversial, and for good reason,” the letter reads. “At worst, it results in undue and inappropriate corporate influence at the highest levels of government — in essence, a barely legal, backdoor form of bribery.”
The letter concludes by posing two questions to the Democratic front-runner: “Do you still support the use of this controversial compensation practice?” and “If you become president, will you allow officials who enter your administration to receive this sort of bonus?”
While Clinton has made steps to appeal to the types of progressive voters behind this letter, she has so far resisted pressure from the left to support reviving the Glass-Steagall Act, which separated commercial and investment banking before it was repealed in 1999. And members of these groups who wanted bank antagonist Warren to run for the presidency are on high alert this week after news broke that the Massachusetts senator met with Vice President Joe Biden over the weekend as he considers his own presidential ambitions.
“It’s hard to imagine Democrats’ 2016 nominee will be truly tough on Wall Street banks that break the law, if they won’t commit to banning their advisers from receiving legalized bribes from those same banks,” said Charles Chamberlain, executive director of Democracy for America, a group founded by former Vermont governor and current Clinton backer Howard Dean.
The letter names a pair of Clinton associates who moved from banks to the State Department: Robert Hormats, an undersecretary who came from Goldman Sachs, and Thomas Nides, a deputy secretary who came from Morgan Stanley.
Warren has suggested repeatedly that any candidate seeking her endorsement must agree not to appoint officials with Wall Street ties.
“Anyone who wants to be president should appoint only people who have already demonstrated they are independent, who have already demonstrated that they can hold giant banks accountable, who have already demonstrated that they embrace the kind of ambitious economic policies that we need to rebuild opportunity and a strong middle class in this country,” she said in July.
Source: Politico
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