Activists Descend on Fed’s Jackson Hole Meeting, Amid Anxiety About Rate Rises
Liberal and conservative groups of central-bank critics plan to hold events to coincide with the Fed symposium, which...
Liberal and conservative groups of central-bank critics plan to hold events to coincide with the Fed symposium, which runs Thursday through Saturday.
The left-leaning group, called Fed Up, will be gathering in the same Jackson Lake Lodge as the Fed attendees, arguing the central bank shouldn’t raise short-term interest rates anytime soon. The right-leaning group, the American Principles Project, is holding a separate gathering nearby to discuss the effect of Fed policies on the dollar and to urge the current crop of presidential candidates to pay more attention to Fed policy issues.
Fed officials also are getting plenty of advice from other experts on the sidelines. Harvard University’s Lawrence Summers, a former Treasury secretary and one-time candidate for Fed chairman, warned in an opinion article this week that raising rates soon would be a “dangerous mistake.” Martin Feldstein, another Harvard professor, used an opinion article to blame the stock market’s current woes on past Fed policy mistakes and urge the Fed not to delay rate increases beyond September.
The Kansas City Fed conference takes place amid considerable turmoil in global financial markets. Stocks, bonds and currencies have gyrated in recent days as investors try to make sense of China’s economic slowdown and what that could mean for the U.S., the global economy and markets. The anxiety has occluded the outlook for Fed policy: Whereas market participants were recently looking to a possible mid-September Fed rate increase, it now appears the odds have diminished.
The liberal Center for Popular Democracy’s Fed Up coalition says it is planning to bring 50 or more activists to the Jackson Lake Lodge for meetings on Fed policy, economic inequality and racial disparities. The group also went to Jackson Hole last year.
Fed Up plans to hold a news conference Thursday and panel discussions with names such as, “Do Black Lives Matter to the Fed?” and “Who’s Afraid of High Wages? A History of the Inflation Bogeyman.” The group says its events are open to all and it hopes attendees at the Kansas City Fed event stop by.
Fed Up has seen successes in gaining one-on-one meetings with regional Fed bank leaders—they recently sat down with the chiefs of the Atlanta and New York Fed banks. It will bring folks to Jackson Hole who are affected by central-bank policies, but whose voices are rarely heard in the debate.
Atlanta resident Dawn O’Neill, a 48-year-old married grandmother, plans to go to Jackson Hole with the Fed Up group. Her unemployed husband struggles to find day work in the construction industry, and she works as teacher’s assistant in a day-care facility for $8.50 an hour.
“When the Fed says the economy is in recovery, and they want to raise the interest rates, I look around and I don’t see recovery,” Ms. O’Neal said. “I see lines of black men that want work, but there is no work.”
The group says that if the Fed keeps its benchmark short-term rate near zero for longer, it will generate more economic growth that creates more jobs among low-wage earners as well as higher-paid workers. The group also believes that better job growth will help benefit minorities and make discrimination harder.
“We have leaders of the Fed who don’t think slow wages and underemployment are problems,” said Ady Barkan, who leads Fed Up’s activities. “When you have leadership like that, you get policies that don’t advance the needs of working families,” he told reporters in a conference call on Monday.
Fed chiefs for years have acknowledged the painfully slow recovery of the labor market and rising income inequality. Fed Chairwoman Janet Yellen gave a speech on inequality last October that garnered her criticism from congressional Republicans who believe such matters are beyond the Fed’s official mission.
Fed officials say their easy-money policies aimed at stimulating the economy are intended to benefit all Americans, not just the wealthy. Last year, former Fed Chairman Ben Bernanke pointed to the recovery of the housing and labor markets as evidence the Fed’s efforts were helping the middle and lower classes.
Even now, Fed officials generally say raising their benchmark short-term rate target by a quarter-percentage point from near zero won’t offer much restraint to growth. The see a small move as reducing the amount of economic stimulus they are providing, akin to lightening the pressure on the accelerator rather than tapping the brake.
They believe that while inflation remains too low, the unemployment rate has fallen enough to start the process of getting short-term interest rates back to more historically normal levels. Some worry that if the Fed sticks with ultralow rates much longer, it could create financial-market bubbles that could wound the broader economy.
The Fed also will be challenged by the American Principles Project, which is holding its event near the central-bank conference and will count participants from the Heritage Foundation and the Cato Institute, both Washington think tanks. In a news release, Steven Lonegan, the group’s monetary-policy director, said, “We will challenge prevailing wisdom and show how the Federal Reserve’s policies have negatively impacted wage growth and contributed to the rising cost of living.”
Wage growth has been tepid in recent years, despite Fed officials’ hopes their easy-money policies would spur stronger gains. Inflation has fallen well short of the Fed’s 2% target for years.
The Kansas City Fed declined to comment on the activity of outside groups around its conference.
Source: iBloomberg
Puerto Rican Families Displaced in Florida by Hurricane María Recruited as Potential Voters
Puerto Rican Families Displaced in Florida by Hurricane María Recruited as Potential Voters
The Summer for Puerto Rico campaign is spearheaded by Julio López Varona, the Director of Puerto Rico Diaspora...
The Summer for Puerto Rico campaign is spearheaded by Julio López Varona, the Director of Puerto Rico Diaspora Campaigns at the Center for Popular Democracy. He emphasized that the focus of the campaign is on promoting political empowerment and literacy, by providing context on who are the lawmakers, and teaching communities about the effects of colonialism.
Read the full article here.
Grupos cívicos piden a Harvard desvincularse de la deuda de Puerto Rico
Grupos cívicos piden a Harvard desvincularse de la deuda de Puerto Rico
Los grupos que participan de la convocatoria están comandadas por el “Center for Popular Democracy”, e incluyen a...
Los grupos que participan de la convocatoria están comandadas por el “Center for Popular Democracy”, e incluyen a organizaciones de estudiantes de esas universidades, así como “Make the Road New York”, “Make the Road Pennsylvania”, “Make the Road Connecticut”, “New York Communities for Change”, and “Organize Florida.”
Lea el artículo completo aquí.
The next labor fight is over when you work, not how much you make
Washington Post - 05-08-2015 - If there’s one labor issue that’s come to the forefront of political agendas over the...
Washington Post - 05-08-2015 - If there’s one labor issue that’s come to the forefront of political agendas over the past few years, it’s the minimum wage: Cities and states around the country are taking action to boost worker pay, as federal efforts seem doomed to fail.
But a new wave of reform is already in the works. Instead of how much you earn, it addresses when you work -- pushing back against the longstanding corporate trend toward timing shifts exactly when labor is needed, sometimes in tiny increments, or at the very last minute. That practice, nicknamed “just-in-time” scheduling, can wreak havoc on the lives of workers who can’t plan around work obligations that might pop up at any time.
Right now, community groups and unions in Washington D.C. are formulating a bill that will address the problem of schedules that can be both shifting and inflexible. The legislation hasn’t been hammered out yet, but the labor-backed group Jobs with Justice says it will likely include a requirement that employers provide workers with notice of their schedules a few weeks ahead of time, and that additional hours go to existing employees, rather than spreading them across a large workforce.
“The one thing we’re finding overwhelmingly is that people aren’t getting enough hours to make ends meet,” says Ari Schwartz, a campaign organizer at D.C. Jobs with Justice, which is now tabulating the results of a survey of hundreds of hourly workers in the city on scheduling issues. “People aren’t getting their schedules with enough time to plan childcare and the rest of the things in their lives.”
When a proposal reaches the D.C. Council in the coming months, Washington won’t be the first: Following the passage of landmark legislation in San Francisco, bills have been offered in Indiana, Maryland, Massachusetts, Minnesota, Illinois, Connecticut, California, New York, Michigan and Oregon. Along with new proposals to expand paid sick day legislation, they are a bid to give employees more control over how they spend their time.
“These scheduling reforms are getting really popular, because it makes no sense that for example you’re required to be available to work by your employer and you’re not picked for that time,” says Tsedeye Gebreselassie, a senior staff attorney at the National Employment Law Project. “People who don’t suffer these abuses already understand what it’s like to juggle work and family, so people really identify with that as being a problem.”
Carrots and sticks
Twenty years ago, schedules weren’t as much of a problem. Working in retail, especially, tended to be a solid 9 to 5 job.
But then retail hours grew longer. And then came computerized scheduling, which allowed employers to best fit staffing to demand. Here’s what that looks like in practice: Handing out schedules based on what times of day or the month you expect the most business, splitting up hours across a large workforce that’s available on a moment’s notice and sometimes sending people home if traffic is slow.
That helps companies optimize their labor costs, but it wreaks havoc on the lives of low-wage workers, who don’t know how much they’re going to make from week to week, and often can’t schedule anything else around work.
One worker, who spoke on the condition of anonymity because she is still employed there, has worked in the hot food prep section of the Whole Foods at 14th and P streets in Washington for 12 years. She liked it; the pay wasn’t bad, and the people were friendly. She worked consistently from 6 a.m. to 2 p.m., and took a second job as a nanny in the afternoons, which added around $300 a week to her income — more money to send home to her father in El Salvador, and to support her daughter in college in Tennessee.
But then, a new manager cut back hours; some people left and weren’t replaced. The schedule posted on the wall started to shift the worker’s days off, or tell her to come in from 10 a.m. to 4 p.m. instead. Usually she got a week’s notice, but once in a while she’d come to work and the schedule had already changed, so she’d have to go back home. After that happened on too many days, she had to drop the afternoon job. So once again, she was just squeaking by.
“She would come and say ‘I really need you to cover this shift,’ and it is what it is,” the worker says in Spanish, through a translator. “Lots of us have lost lots of jobs.”
It’s been better over the past few months, she says. And that’s not by accident: As public complaints surfaced about Whole Foods’ scheduling practices, the company rolled out a new system that allows employees to see their schedules for two weeks in advance and prevents managers from changing them at the last minute or scheduling “clopenings”-- both closing the store and opening it in the morning -- without an employee’s consent. The policy has been in place nationwide since early April, spokesman Michael Silverman says.
Whole Foods isn’t alone. Walmart has also introduced a system of “open shifts,” which allows workers to pick their own hours. Starbucks curbed some of its practices in the wake of a New York Times article last year that described their effect on one barista. The Gap is working with the Center for WorkLife Law at Hastings College of Law in San Francisco to set up pilot projects around the country that would measure the impact of giving employees stable schedules and more hours. Many companies haven’t taken into account how much their scheduling practices are actually costing them in the form of employee turnover, professor Joan Williams says.
“If you don’t count that cost, it disappears. The idea is to generate the kind of rigorous data that will be needed to persuade people to change their financial models."
— Professor Joan Williams, Hastings College of Law
“If you don’t count that cost, it disappears. The idea is to generate the kind of rigorous data that will be needed to persuade people to change their financial models," says Williams. "Our hypothesis is that if you provide people with more stable schedules, you’ll see lower turnover [and] absenteeism and higher worker engagement.”
In time, the business case may grow clear enough that more companies move toward stable schedules on their own. But Williams says legislative efforts are needed as well: A recent national survey found that 41 percent of early-career, hourly workers get their schedules less than a week in advance. In a survey of retail and restaurant workers in Washington, Jobs with Justice found that employers like Forever21 and Chipotle are among the worst offenders. (Forever21 did not respond to a request for comment. Chipotle says it publishes schedules four days in advance, with shifts lasting seven hours on average.)
And now, there’s legislation to benchmark against. Last year, San Francisco became the first jurisdiction to pass comprehensive scheduling reform, with a set of companion bills that require “formula retailers” (i.e., large chains) to give workers two weeks notice of their schedules, pay workers for the shifts when they’re on call and give hours to current employees instead of hiring more, among other provisions. The law went into effect in January, but won’t be enforced until July.
Meanwhile, scheduling legislation is in the works around the country. National groups like the Center for Popular Democracy and the National Womens Law Center are helping to build coalitions where scheduling reforms could prove politically palatable, in places like New York — where the union-backed Retail Action Project has been advocating for “just hours” for years — and Minnesota, where the AFL-CIO-affiliated Working America has been building support among non-union members for measures that would benefit all workers.
Scheduling legislation even exists on the federal level. A federal bill introduced in Congress last summer would require employers to make schedule accommodations for health or childcare needs, unless there is a “bona fide business reason” for denying it. Yet another bill, proposed last month, would prevent employers from firing workers for requesting a schedule change.
But it hasn’t been smooth sailing for the scheduling reform movement. A Maryland bill failed this year, in the face of employer opposition. And though there isn’t even a bill yet in Washington, businesses are voicing skepticism.
“Any time you alter how employers hire, schedule or retain their workforce, if that flexibility makes DC less attractive to businesses, than I’m concerned about that."
— Harry Wingo, president of the D.C. Chamber of Commerce
“Any time you alter how employers hire, schedule or retain their workforce, if that flexibility makes DC less attractive to businesses, than I’m concerned about that,” said Harry Wingo, president of the D.C. Chamber of Commerce. “The D.C. chamber is concerned about any restrictions on free enterprise.”
It’s perhaps more concerning to employers than even raising the minimum wage: That’s just extra cost. Scheduling, by contrast, impacts the very core of how they’ve learned to do business.
Making it real
Laws, of course, are only as good as their enforcers. And scheduling laws, with their far-reaching impact, could be particularly difficult to follow up on.
Just ask unions, which already have many of the proposed scheduling rules in their contracts. Making sure employers stick to them is a big job, even though union dues pay for far more inspectors — in the form of business agents and shop stewards — than city and state governments ever will.
“The union has this exact set of provisions in its contracts, and they are extremely important for making sure that if you have the seniority you can get the fullest work week possible,” says John Boardman, president of UNITE-HERE Local 25, which represents 6,500 mostly hotel workers in the D.C. area. “But it also takes a very, very strong enforcement mechanism in order to make these provisions of the contract viable and living.”
Jobs with Justice already knows this. A few years ago, D.C. passed laws requiring employers to pay for a minimum of 4 hours in a shift, even if a worker was sent home early, and to pay an extra hour’s worth of wages for every “split shift” (with a long break in the middle) that an employee works. In its survey, Jobs with Justice found that workers were sent home early and asked to work split shifts just as much as they were in 2010, when another survey was done, suggesting the laws hadn’t had much effect.
That’s why they’re hoping the city will put more resources into enforcement, in the form of inspectors and people to process claims. But it’s also going to have to involve a massive education campaign to make workers aware they even have these new rights.
"It is easier to enforce these things when you have a union contract and a grievance procedure, and a shop steward and union infrastructure to back that up,” says Schwartz. “But we can’t keep relying on that as our only model. Because there’s so many workers in the growing retail and restaurant sectors that need those protections, too.”
Source: The Washington Post
These Wall Street Companies Are Ready To Call In On Trump’s Border Wall
These Wall Street Companies Are Ready To Call In On Trump’s Border Wall
Much of the discussion on President Donald Trump’s border wall has focused on its cost and impracticality, as well as...
Much of the discussion on President Donald Trump’s border wall has focused on its cost and impracticality, as well as the anti-immigrant and racist rhetoric it embodies. Little attention, however, has been paid to who specifically might profit from building the structure.
Read the full article here.
The pressure's on the Federal Reserve to make a diverse pick for Atlanta post
The pressure's on the Federal Reserve to make a diverse pick for Atlanta post
The selection of a regional Federal Reserve bank president normally takes place in relative obscurity, followed only by...
The selection of a regional Federal Reserve bank president normally takes place in relative obscurity, followed only by local business leaders, financial executives and analysts who track monetary policy.
But amid concerns about a lack of diversity at the highest levels of the nation’s central banking system, great attention is being focused on who will be chosen as the next head of the Federal Reserve Bank of Atlanta.
The search is being watched closely by members of Congress and advocacy groups that have complained publicly in recent months that the Fed’s top leadership is nearly all white.
The Atlanta region, which has a large African American population, presents the perfect opportunity to start changing that, they said.
“This would be historic,” said Rep. Maxine Waters (D-Los Angeles), who would like the Fed to make the next Atlanta chief the first African American to lead one of the 12 regional banks. “It would be very important, and it’s long overdue.”
As the Fed has taken on a larger role in the economy in the wake of the Great Recession, the lack of racial and ethnic diversity among key decision-makers has sparked concerns that monetary policy decisions haven’t taken into account the higher unemployment rates among African Americans and Latinos.
“Communities of color have not yet experienced full economic recovery,” said Shawn Sebastian, field director of Fed Up, a campaign by labor, community and liberal activist groups that wants the Fed to enact pro-worker policies.
“As a really important economic policymaker, the Fed needs to actually reflect America,” he said.
Leading African American lawmakers have called on Fed Chairwoman Janet L. Yellen, the first woman to lead the central bank, and the Atlanta Fed to conduct a broad search.
Fed officials have promised to do that. But they’ve made no commitment to a diverse appointment for a complex job that includes overseeing about 1,700 employees in the Atlanta region and participating in monetary policy deliberations in Washington.
During an October webcast on the search, Tom Fanning, chairman of the Atlanta Fed’s board of directors, was asked whether the bank had “a special opportunity” to break the regional bank “color barrier.”
“That would be a great thing. We’re all for it,” he said. “We want the best person as well.”
The U.S. labor force's guy problem: Lots of men don’t have a job and aren’t looking for one »
Fanning, chief executive of Atlanta-based energy firm Southern Co., is leading the bank’s search committee. The committee is reviewing candidates and doesn’t have a timetable for a decision, Atlanta Fed spokeswoman Jean Tate said.
The five sitting members of the Board of Governors and 11 of the 12 regional bank presidents are white. Since the central bank was created in 1913, three African Americans have served as governors, but there have been no Latinos. There never has been an African American or Latino regional Fed president.
“They just need more diversity,” Waters said.
Regional Fed presidents rotate onto the Federal Open Market Committee, where they join Fed governors in setting the level of a key interest rate that affects business and consumer loans.
The committee has started nudging up the rate as the unemployment rate has fallen below 5%. But many liberals are worried the job market isn’t fully healed, pointing to higher unemployment rates for African Americans and Latinos.
Last spring, Waters was among 116 House members and 11 senators who wrote to Yellen criticizing what they called “the disproportionately white and male” leadership at the central bank.
“Given the critical linkage between monetary policy and the experiences of hardworking Americans, the importance of ensuring that such positions are filled by persons that reflect and represent the interests of our diverse country, cannot be understated,” said the letter, organized by Rep. John Conyers (D-Mich.) and Sen. Elizabeth Warren (D-Mass.).
At congressional hearings, lawmakers have pushed Yellen to do more to improve diversity among the regional bank chiefs.
The president nominates Fed governors, who must be confirmed by the Senate. Yellen and her colleagues on the Board of Governors give final approval for regional bank president selections, which are made by the board of directors of each bank.
“It’s our job to make sure that every search for those jobs assembles a broad and diverse group of candidates,” Yellen told Rep. David Scott (D-Ga.) last winter after he pressed her to consider “getting an African American, for the first time in history, to be a regional president of a Federal Reserve bank.”
That was before Atlanta Fed President Dennis Lockhart announced his resignation in September, effective Feb. 28.
Shortly afterward, Waters, the top Democrat on the House Financial Services Committee, joined Conyers, Scott and Rep. John Lewis, another Georgia Democrat, in writing to Yellen and Fanning urging the Fed to “consider candidates from diverse personal backgrounds, including African Americans, Latinos and women.”
The letter said that “grave racial disparities exist across our nation in unemployment wages and income.” It also said that the unemployment and poverty rates for African Americans in the Atlanta region — Alabama, Florida, Georgia and parts of Louisiana, Mississippi and Tennessee — were about double those for whites.
For the first time, the Atlanta Fed’s search committee has asked the public to submit names of potential candidates. The Atlanta Fed also has tried to make the process more transparent by posting details on its website, including holding the October webcast in which Fanning answered the public’s questions.
Asked about the importance of diversity for addressing “the special concerns of minority communities,” Fanning said he thought the Fed already did a good job on the issue, but “increasing our cultural bandwidth” was important.
“It is incumbent upon the person that gets this job to have the broadest perspective possible,” he said. “That’s why valuing diversity is really a critical component here.”
By Jim Puzzanghera
Source
Parents as Decision Makers
Parents as Decision Makers
All the time, parents are making decisions about what happens in their children’s lives. The same needs to be true when...
All the time, parents are making decisions about what happens in their children’s lives. The same needs to be true when it comes to choosing what happens with their child’s academic education. It is more than just choosing a school but also what happens in the school building. With the sustainable community school model, parents are very much part of the decision-making process. This goes beyond the realm of engagement but views them as collaborators in the achievements of the school. The Community Schools Toolkit created by The Center for Popular Democracy signifies the importance of this involvement by stating, “parent engagement is promoted so the full community actively participates in planning and decision-making.” It is important to consider parents in the same manner as teachers and administrators although they provide a different perspective. It is like pieces to a puzzle, each one has a part to contribute which must be done for it to be whole. Parents must be at the table with equal input regarding the daily activities that happen in the school building from academics to after-school programming and other aspects such as community events.
It is quite understood, parents are not formally trained as educators; however, they are the first teachers of children. This is a shared experience we all have as adults. Yes, some were better than others but it was those things our parents taught us which have a lasting impact. As a result, parents possess the necessary qualities to be involved with the process of choosing curriculum, managing the budget, and identifying staff, teachers, and administrators who are a good fit with the school’s climate. The parents have a particular perspective when it comes to their involvement and their inclusion and embracement would create a cohesive culture for success. They need not be considered an option but one of the main individuals in building the school’s environment conducive to learning.
This role of parent involvement is different and separate from PTAs or PTOs. These organizations are representative of an existing institution within the school. It may not necessarily project the sole interests of parents since it is also an organization comprised of other members. Additionally, the groups are connected to a national organization where the interests may align with corporations. Parents as decision-makers bring a different viewpoint as a result of their concern for children and the community and not institutions or corporations.
The relationship between the school and parents needs to be one of partnership instead of a dichotomous one. They both are involved with developing the child to become a successful adult who can function as a productive member of society. One thing a parent is free to do when compared to those who work for the school district is aggressively advocate. There is every reason to take the risk where the answer may be no for others. They aren’t at risk of losing their job, adverse disciplinary action, or retaliation. So, parents can do what the others can’t which is lobby elected officials, make demands with the central office leadership and Superintendent, speak out against the unequal and unfair treatment, and actively galvanize all stakeholders to be involved in the process of making not only the school better but the overall community.
Since parents possess a variety of resources, it’s proper for them to assist with the development of the school. Some of these assets which can be contributed are time, talents, knowledge, and skills. For example, I am a Social Worker by profession and I can be utilized to provide a range of services to the school community. A benefit with having a parent involved is their existing relationship with the school along with their knowledge of the community, and their vested interest of the best possible outcome for the children, the school, and neighborhood.
There are times when parents are regarded as an after-thought and advisors. Ultimately, the successful outcome of the school is comprised of the necessary ingredient which is parent engagement. But, parents as decision makers goes beyond the realm of engagement to the extent of involvement in every aspect of the school’s functioning. Recently, there was reporting of lead levels above the EPA threshold in Newark, NJ public schools. Although this was an ongoing problem for some years and known to Newark Public School officials, this information wasn’t disclosed to the parents or the community. It is important for parents to be provided with the necessary information so they can determine how to proceed with it. Also, their inclusion recognizes the link between the overall success of the school and the progressive development of the community. When all of us embrace the inclusion of the children’s first teachers in the process of academic development, we will understand the essential impact of parents as decision-makers.
By Viva White
Source
A Campaign for Full Employment, and the Federal Reserve
A Campaign for Full Employment, and the Federal Reserve
Fed Up Field Director Shawn Sebastian with the Center for Popular Democracy joins us to talk about their campaign...
Fed Up Field Director Shawn Sebastian with the Center for Popular Democracy joins us to talk about their campaign pushing the Federal Reserve to adopt pro-worker policies, keeping interest rates low, and how they re getting public support to build a better economy.
CHARLES SHOWALTER AND SHAWN SEBASTIAN
Source
These Southern Cities Are at the Heart of the Struggle Against White Supremacy
These Southern Cities Are at the Heart of the Struggle Against White Supremacy
The Black Lives Matter activists and anarchists, the socialists and anti-fascists, the religious leaders and local...
The Black Lives Matter activists and anarchists, the socialists and anti-fascists, the religious leaders and local residents who risked their bodies and their well-being in Charlottesville this month should be celebrated for their courage and praised for their good sense and smart tactics. Violent fascists, neo-Confederates, Ku Klux Klanners, and other racist extremists don’t care about justice or civility or our common humanity. Their express aim is to annihilate anyone who isn’t white, straight, and Christian. And they have made it clear that they are willing to use raw and murderous force to get their way.
Read the full article here.
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
Source
1 month ago
1 month ago