Election 2016: Measure E — Opportunity to Work
Hiring workers might get a little more complicated for San Jose businesses come 2017. Measure E is a South Bay Labor...
Hiring workers might get a little more complicated for San Jose businesses come 2017.
Measure E is a South Bay Labor Council-backed San Jose initiative aimed at giving part-time workers access to more hours.
If passed, businesses with more than 35 employees would have to offer additional hours to existing part-time workers before hiring new employees, including temps. Part-time workers would have the option to decline the hours, and employers would not be required to offer hours that result in overtime.
The City of San Jose would enforce and set guidelines for the regulation, and grant hardship exemptions for some businesses.
If approved, the law would take effect 90 days after the vote is certified.
Measure E is opposed by the San Jose Silicon Valley Chamber of Commerce, San Jose Downtown Association and California Restaurant Association.
Opponents argue the measure will lead to a decrease in part-time jobs, burden employers with another layer of bureaucracy and hurt businesses and nonprofits (who are not exempt) that rely on seasonal and part-time labor.
Derecka Mehrens of Working Partnerships USA, a labor-aligned think tank, said the measure is necessary to address a “crisis of underemployment” in Silicon Valley. The initiative, she said, will also help people working multiple jobs, with the accompanying lack of benefits, to be able to work only one job.
Passage requires a majority vote. An October phone poll of 300 likely voters commissioned by supporters of Measure E found 62 percent supported the measure, 30 percent opposed and 8 percent undecided. The chamber declined to share its polling.
Supporters of the measure have a huge advantage in terms of money raised. As of Sept. 24, the Yes on E campaign had raised $481,700, more than eight times the $59,200 raised by the opposition San Joseans for Jobs campaign.
Chamber President and CEO Matt Mahood took a shot at the large amount of money the Yes on E campaign has raised from outside groups, which includes $250,000 from the Brooklyn-based Center for Popular Democracy.
Mehrens responded by saying that Working Partnerships is a member of CPD, and that the measure is part of a national campaign. In September, Seattle passed a “secure scheduling” law that included a provision requiring food and retail businesses with more than 500 employers to offer additional hours to part-time workers before hiring new employees.
By Bryce Druzin
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Retailers Discover That Labor Isn't Just a Cost
For the past couple of decades, retailing in the U.S. has -- with some notable exceptions -- been a vast experiment in...
For the past couple of decades, retailing in the U.S. has -- with some notable exceptions -- been a vast experiment in minimizing labor costs.
At the 2009 annual convention of the National Retail Federation, though, Charles DeWitt noticed the beginnings of a shift. "Retailers started coming up to me and saying, 'We can't get any more out of this cost stone,'" recounted DeWitt, vice president of business development at workforce-management-software maker Kronos.
Since then, this change in attitude has become the stuff of business headlines. Most notably, Wal-Mart, the retailer that set the cost-cutting tone in the 1990s, has been raising wages and spending more on training. There's surely a cyclical element at work here -- as the unemployment rate drops, it's harder for retailers to find workers. There's also a political element -- bad press and minimum-wage campaigns must have some effect on corporate behavior.
But the really intriguing possibility is that retailers, in their technology-driven rush to optimize operations during the past two decades ("rocket science retailing," one Wharton School operations expert dubbed it) were actually failing to optimize labor. Their systems measured it only as a cost, and didn't track the impact of low wages, part-time work and unpredictable work schedules on sales and profits. Now some retailers are trying to fix that.
One big set of targets are the scheduling systems that have allowed retailers to ever-more-closely match staffing to customer traffic, but in the process wrought havoc with many workers' lives by making their schedules so unpredictable. Jodi Kantor gave a face to this last year with a compelling New York Times account of the chaotic life of a single-mom Starbucks barista.
Kronos supplies Starbucks' scheduling software, and DeWitt was quoted in the Times article describing its workings as "like magic." So it was a little surprising to see him on stage last week at O'Reilly Media's Next:Economy conference, nodding pleasantly and occasionally chiming in as a Starbucks barista, a labor activist and a journalist described the horrors inflicted by scheduling software.
When I told him afterward that I was surprised he wasn't more defensive, DeWitt said, "I'm more of a math guy, an optimization guy. This is a parameter to be optimized." It's also a business opportunity. "We are in early-stage investigations with very big customers," DeWitt went on. "The plan is to go in and suck all these things out of the database and work with them to customize metrics."
The idea is to figure out how dynamic scheduling and other labor practices affect metrics such as absenteeism, turnover and sales. Right now a lot of retailers just don't know. Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy and the labor activist who shared the stage with DeWitt, recalled a conversation she had with an executive at a big retailer at last year's National Retail Federation convention. "I said, 'These schedules cost you in terms of turnover.' She said, 'I’m in operations. That’s HR.'"
That's not true everywhere. Here's Stuart B. Burgdoerfer, chief financial officer of L Brands, the retailer that includes the Victoria's Secret and Bath & Body Works chains, speaking at the company'sannual investor day this month:
As we looked at the data, we just had too many people working too few hours per week. And the trouble with that or the opportunity with that is how well can they really know your business, how invested are they in us, or we in them, if they're only working a few hours per week and their turnover rate is very high?
And so we see the opportunity to have a more knowledgeable, more engaged, more effective and productive associate. When she's working, typically she is working more hours per week. So that's the opportunity. And we think it's a significant one. Really do.
Recent academic work backs this up, to a point. Researchers such as University of Chicago social psychologists Susan Lambert and Julia Henly and Pennsylvania State University labor economist Lonnie Golden have been documenting the extent and social costs of irregular scheduling. Meanwhile, operations experts at business schools have been trying to identify labor practices that maximize sales and profits.
The best known of these is probably the "good jobs strategy" outlined by Zeynep Ton of the Massachusetts Institute of Technology, first in a2012 Harvard Business Review article and then in a 2014 book. Ton studied low-cost, high-wage retailers such as Costco, Trader Joe's, Oklahoma-based convenience-store chain QuikTrip and Spanish supermarket chain Mercadona and concluded that they operated in a virtuous cycle in which highly trained, autonomous, full-time employees working with a limited selection of products drove high performance.
There's a tendency, upon hearing accounts such as Ton's (she also spoke at the Next:Economy conference), to wonder why every retailer doesn’t do that. One reason is that the limited-selection approach can't work for everybody. Another is that, as my Bloomberg View colleague Megan McArdle wrote last year, if every retailer paid like Costco, many of Costco's labor advantages would disappear. And finally, while some retailers surely have hurt themselves in their zeal to optimize labor, the move away from full-time retail jobs and toward staffing that's closely matched to customer demand hasn't been totally irrational.
In one recent study, Saravanan Kesavan, Bradley R. Staats and Wendell Gilland of the University of North Carolina looked at labor practices at a large (unidentified) retail chain. Their hypothesis was that the use of temporary and part-time workers would be linked with per-store sales in an inverted U-shaped curve -- with sales at first rising as the percentage of temps and part-timers rose, but eventually falling.
The data backed them up. To maximize sales, the optimal share of temp workers was 13 percent and part-timers 44 percent. But those percentages were both higher than the retailer's current averages of 7 percent and 32 percent. Overall, hiring more part-timers and more temps was likely to lead to higher sales.
The data-driven reexamination of labor practices by big retailers will surely lead to some improvements in how workers are treated and paid. I don't get the impression that, by itself, it will lead to all retail jobs becoming good jobs.
Source: Bloomberg
US Activists Target Fed's Rate-hike Talks
Taipei Times - November 16, 2014 - US labor and community organizers meeting with US Federal Reserve Chair Janet...
Taipei Times - November 16, 2014 - US labor and community organizers meeting with US Federal Reserve Chair Janet Yellen challenged officials who are ready to raise interest rates to first come visit the poorest neighborhoods with them before saying that the economy has recovered.
Kati Sipp, one of about two dozen activists meeting Yellen, said at a press conference on Friday in front of the central bank in Washington that she would show Philadelphia Fed President Charles Plosser “what life is like in this economy” for his city’s unemployed.
“Clearly Charles Plosser hasn’t been coming out the way that I work,” Pennsylvania Working Families director Sipp said. “I work on 60th Street in West Philadelphia in a storefront office and every single day someone or a couple of people come in to my office because they are looking for work.”
Members of the group met with Yellen and Fed governors Stanley Fischer, Jerome Powell and Lael Brainard. The coalition of 20 community groups, labor unions and religious leaders from around the US wants the Fed to hear the concerns of ordinary US residents as it prepares to raise rates. It is part of wider public pressure, including from legislators of both parties, who want more accountability and transparency from the central bank.
The Fed has been criticized by Democratic and Republican party groups over its rescue of big Wall Street banks in the financial crisis that began in 2008, and over subsequent steps to support the economy through zero interest rates and massive bond purchases.
The group meeting with Yellen and her colleagues on Friday included individuals struggling to find work despite the improving economic picture in the US, Ady Barkan, senior staff attorney at the Brooklyn-based Center for Popular Democracy, one of the organizers of the meeting, said in an interview.
“They all listened very intently and asked questions,” Barkan said of Yellen and the three governors. “They were very interested in hearing about the personal stories of the folks we brought.”
Barkan said Rounds told the Fed officials that “sky-high unemployment” in the St Louis area had contributed to “desperation” in the town.
Another speaker was Shemethia Butler, an unemployed woman from Washington. She recounted for Yellen how she was laid off from a job that offered no paid sick days after becoming ill and missing time at work, Barkan said.
The jobless rate has fallen to 5.8 percent from a 26-year high of 10 percent in October 2009. Interest rates have been held near zero since December 2008 and most Fed officials project that they will raise borrowing costs sometime next year.
Still, millions of US citizens can find only part-time work, while average hourly wages have risen at about a 2 percent pace for the past five years, barely outpacing inflation.
“The economy is not working for the vast majority of people,” Barkan told reporters before the meeting in front of the central bank headquarters facing the National Mall. “It’s too important of an institution to be controlled and dominated by big banks and corporations, rather than the public.”
In addition to low rates to help the unemployed, the groups are pushing for a more open and transparent search process for regional bank presidents that includes more community input. Barkan said the group asked Yellen for support in arranging meetings with each regional Fed president.
While formal changes to the process of selecting regional Fed leaders would require legislation, Barkan said the Fed board of governors held significant informal influence over the process.
“I’m sure they could change the process if they wanted to,” he said.
Plosser and Richard Fisher of Dallas both plan to retire next year and the “Fed Up” coalition wants more public input in naming their successors. Both banks have said they have hired executive search firms to find candidates.
Economist Josh Bivens, research and policy director at the Economic Policy Institute in Washington, said the Fed’s willingness to arrange the meeting was “incredibly encouraging” because the central bank “is one of the most important institutions in the world, but few Americans know it.”
While the unemployment rate has declined to a six-year low, there remains “too large a gap between today and a healthy economy,” he said, adding that stakes are highest for disadvantaged groups, including African-Americans. Their unemployment rate tends to be twice as high as the broader US level both “in good times and in bad,” Bivens said.
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Promueven petición contra Wells Fargo y JPMorgan por “financiar el dolor” de inmigrantes

Promueven petición contra Wells Fargo y JPMorgan por “financiar el dolor” de inmigrantes
La petición cuenta con el respaldo de más de 70 organizaciones bajo el paraguas de la coalición #FamiliesBelongTogether...
La petición cuenta con el respaldo de más de 70 organizaciones bajo el paraguas de la coalición #FamiliesBelongTogether, que incluye a Presente.org, la Unión de Libertades Civiles de EEUU (ACLU), MoveOn.org, Amnistía Internacional, la Alianza Nacional de Trabajadoras Domésticas, MomsRising, Center for Popular Democracy, y Make the Road New York, entre otras.
Lea el artículo completo aquí.
Gary Cohn publicly criticizes Trump's Charlottesville response and reportedly came close to resigning over it

Gary Cohn publicly criticizes Trump's Charlottesville response and reportedly came close to resigning over it
Top White House economic advisor Gary Cohn publicly criticized President Trump’s response to the violence in...
Top White House economic advisor Gary Cohn publicly criticized President Trump’s response to the violence in Charlottesville, Va., and reportedly came close to resigning over it.
In his first public comments on the matter, Cohn told the Financial Times in an interview published Friday that the Trump administration “can and must do better in consistently and unequivocally condemning” white supremacists, neo-Nazis and the Ku Klux Klan.
Read the full article here.
Fed’s George to meet with protestors ahead of Jackson Hole summit

Fed’s George to meet with protestors ahead of Jackson Hole summit
Federal Reserve Bank of Kansas City President Esther George will host a meeting Thursday with the activist group known...
Federal Reserve Bank of Kansas City President Esther George will host a meeting Thursday with the activist group known as Fed Up ahead of the bank’s annual conference in Jackson Hole, Wyoming.
Other Fed officials also will attend the meeting, which will “focus on crucial and timely questions about monetary policy and Federal Reserve governance,” the group said in a statement. The meeting will be streamed online, the group said.
The Kansas City Fed confirmed the Aug. 25 meeting with the left-leaning Center for Popular Democracy’s Fed Up coalition.
Fed Up has been urging the central bank to hold off on raising interest rates until the economy improves further and working class households have seen more of the benefits of the expansion. The group also has criticized the Fed for lack of diversity among its 12 regional bank presidents.
The group has joined with Andrew Levin, a Dartmouth College professor and former Fed staffer, to propose changing the regional banks into fully government institutions from their quasi-public, quasi-private structure, and to eliminate regional board director seats that are reserved for bankers. The boards are responsible for appointing regional bank presidents who participate in the Fed’s policy meetings.
By David Harrison
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In Minneapolis, a Strong ‘Fair Scheduling’ Law for Workers Runs Into a Corporate Roadblock
Less than a year after San Francisco passed a first-of-its-kind fair scheduling ordinance for retail employers,...
Less than a year after San Francisco passed a first-of-its-kind fair scheduling ordinance for retail employers, progressive activists in Minneapolis began pushing for an even stronger scheduling ordinance of their own—along with paid sick leave, wage theft protections, and the possibility of a $15 minimum wage.
But the campaign, dubbed the Working Families Agenda, ran into a roadblock earlier this month when its most powerful political ally, Mayor Betsy Hodges, decided to abandon the fair scheduling component. Language in the proposed ordinance called for scheduling notice of at least two weeks in advance and extra “predictability pay” for workers who were scheduled after that threshold.
Those requirements quickly awoke the local business lobby, typically a fairly dormant political power in a city with a strong progressive streak. In late September, opponents formed the Workforce Fairness Coalition by the Chamber of Commerce, and included prominent members like the Minnesota Business Partnership (which represents about 80 businesses, including Target, U.S. Bancorp and Xcel Energy) and the Minnesota Restaurant Association. They took specific issue with the scheduling law, saying that it would impede operations and could force businesses to flee the city.
Many progressive activists don’t buy that argument.
“We heard the same arguments from the Chamber of Commerce that are being made in Minneapolis,” says Gordon Mar, who led the campaign to pass San Francisco’s Retail Worker Bill of Rights, which includes fair scheduling. “As we’ve been implementing the law, those arguments have proven to be just as hollow as they were in business’s opposition to other worker-friendly laws."
Minneapolis Mayor Betsy Hodges ran in 2013 on a campaign that promised to directly address the city’s stark racial disparities, aspiring for a “One Minneapolis.” The city has some of the largest gaps in the country between whites and people of color for a number of indicators including rates of high school graduation, homeownership, low-level arrests and employment.
Those disparities are rampant in the workplace, too. For example, 63 percent of white workers in Minneapolis have access to earned sick time compared with just 32 percent of Latino workers. A Minnesota Department of Health report found that 79 percent of food workers—many of whom are minorities—lacked paid sick time.
In her 2015 State of the City address just six months ago, Hodges outlined an agenda she said would address economic disparities, specifically calling for an ambitious plan to implement fair scheduling, wage theft protection and paid sick leave. But since then, Hodges appears to have taken business’s concerns to heart.
“When it comes to fair, predictable scheduling, I have heard from many people, including many business owners, that the issue is complicated and that more time is needed to engage in this important issue,” the mayor said in a statement on October 14. “As a result, I have come to the conclusion that we are not in a position to resolve the concerns satisfactorily on the timeline currently contemplated.”
While Hodges pledged to continue pushing for paid sick leave and wage theft enforcement, activists felt blindsided by her sudden retreat.
“Our progressive champions were not prepared for the pushback and frankly folded under the pressure, … caving to conservative business elements,” says Anthony Newby, executive director for Minnesota Neighborhoods Organizing for Change, a member of the coalition supporting these policies. “Where does [Hodges] want to be allied? With working people or with the worst actors of the business community?”
The day after Hodges’ announcement, about 300 people streamed into City Hall in downtown Minneapolis to reaffirm support for all aspects of the Working Families Agenda. Workers and organizers spoke about the daily burdens of low-wage work and how they contribute to the racial disparities that plague a city often portrayed as a progressive wonderland. Minneapolis NAACP President Nekima Levy-Pounds described the city’s situation as a tale of two cities: “It’s the best of times if you’re white and the worst of times if you’re black.”
While the scheduling law language had not been set in stone, many businesses were concerned with its details. At first, advanced notice for schedules was set at four weeks, which was eventually scaled back to two. For every change an employer made to a worker’s schedule within two weeks of the shift, that worker would earn an hour’s wage worth of “predictability pay.” For any schedule change within 24 hours of a shift, a worker would get four hours’ pay.
Opponents were quick to cast this as an unrealistic policy with a costly burden placed on employers, and would be completely unworkable for restaurants, retailers and many other businesses that they say are dependent on “flexible” scheduling models. Advocates are quick to point out, though, that current workplace scheduling standards put all the cost on workers. For example, if a worker relies on childcare during her shifts and an employer tells her to stay late, many childcare centers charge fees for late pickups; or, having already spent money on childcare and transit, she could arrive at work to find her shift has been cut.
On fair scheduling, says Elianne Farhat with the Center for Popular Democracy’s Fair Workweek Initiative, it’s clear there’s going to be a cost. “What gets lost in the conversation is that it’s not that there isn’t a cost right now— it’s just that the workers are bearing that cost,” Farhat says. “What [fair scheduling] is trying to do is balance that cost.”
Despite Hodges’ call for more time to parse out details on scheduling, activists aren’t backing off. Her announcement seems to have galvanized many local organizations that previously were on the fence. Organizers say they will continue to advocate for paid sick leave and wage theft protections in the immediate future while aiming for an eventual victory on fair scheduling.
Compromises will likely need to be made. While San Francisco’s scheduling law applied only to big chain stores, Minneapolis’s fair scheduling proposal is universal. That may need to be scaled back, according to activists: Some added flexibility for “predictability pay” requirements may be needed, and further discussion about phase-in periods for smaller businesses will likely be coming. But organizers say they didn’t expect an easy path to passing the strongest scheduling law in the country. In fact, at a city council meeting last week two members announced a plan to refer the proposed paid sick leave policy to a new committee made up of workers, labor leaders, employers and business associations that would meet in mid-November and hash out details.
“‘No’ is not an answer. The question is what does it take to get a yes,” says Newby. “We need to figure out what is that sweet spot that’s gonna work for us. That may take a little bit more time.”
Source: In These Times
Meet the Activists Who Want to Make the Fed Listen to Workers for a Change
Vox - August 22, 2014, by Dylan Matthews - The Jackson Hole conference, an ...
Vox - August 22, 2014, by Dylan Matthews - The Jackson Hole conference, an annual retreat in Wyoming organized by the Kansas City Fed, is usually frequented by central bankers, private sector economists, and academics. It's not usually frequented by everyday workers.
This year was differrent. A group of community activists traveled to the conference to urge policymakers to not do what an increasing number of voices in the Fed system and in the financial sector have been urging them to do: raise interest rates.
"They need to stimulate the economy," says Kendra Brooks, a former bank manager from Philadelphia who's been unemployed for about a year. "Increasing the interest rate here isn't going to help the people without jobs. It's going to put us further into debt."
"I want to at least get our voices heard before they make their decisions,"Tyrone Raino, who recently took a job requiring a 40 mile commute from his home in Minneapolis, says.
Brooks and Raino are both members of local community organizing groups — Minnesota Neighborhoods Organizing for Change and Action United in Philadelphia, respectively — which have, with the Center for Popular Democracy, come together to try to do something that hasn't really been done before: grassroots lobbying of the Fed. And they're being heard.
According to the Center's senior attorney, Ady Barkan, the group met with Kansas Fed chief Esther George for two hours, and spoke to Fed chair Janet Yellen, Chicago Fed chief Charles Evans, and Minneapolis Fed chief Narayana Kocherlakota. The last three are sympathetic to Brooks and Raino's perspective — Raino called Kocherlakota "one of the voices in the Federal Reserve system who understands the economy is far from recovery for most of us" in an article for MinnPost — George has expressed support for raising interest rates. For people trying to lobby a generally unlobbied institution, that's an impressive start.
To some extent, the Fed is designed to be impervious to outside pressure like this. Many economists believe that central bank independence — that is, having a central bank that is not directly controlled by legislatures or other democratically elected officials — is crucial to effective monetary policy. In 1993, future Treasury Secretary Larry Summers and his Harvard colleague Alberto Alesina authored a hugely influential paper arguing that countries with more independent banks have less variable prices and lower inflation overall. While that finding was controversial, the view that month-to-month policy decisions by the Fed should not be influenced by politicians — what Fed vice chair Stanley Fischer has called"instrument independence" — is widely accepted.
But Barkan argues that the independence the Fed currently enjoys is one-sided. "There are 108 board members across the 12 regional banks," he notes. "Under the law, 72 of them are supposed to represent the public interest and 36 are supposed to represent banking and financial interests. But of the 108, 97 are from financial institutions or corporations. Only 9 are from nonprofits, and even those are from major, wealthy nonprofits. Only 2 of the 108 board members represent labor organizations and workers."
"This desire for Fed independence really only goes in one direction," he concludes. "It's a desire for insulation from the needs of regular people."
Barkan, Brooks, and Raino avoid endorsing specific proposals for the Fed to get tougher on unemployment, like setting a nominal GDP target or abolishing paper money or allowing "helicopter drops." The emphasis is more on convincing the Fed that there is still a problem — that the labor market still has slack.
While some in the Fed worry that people are getting too many raises, Barkan argues that wage growth is still too slow — and that the labor market won't be healthy until it's significantly higher. "Real rising wages will represent tightening of the labor markets, and that's what you want to pull the long-term unemployed back into the market, and vulnerable workers back into the market," he says. "It's only once the labor market tightens that you can help vulnerable communities get out of this long recession."
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When Lawsuits Protect Hardhats
New York Daily News - April 17, 2014, by Errol Louis - New York is about to embark on a historic building boom — and...
New York Daily News - April 17, 2014, by Errol Louis - New York is about to embark on a historic building boom — and that has touched off a furious new round in a long-running battle about how to protect the health and safety of the workers who create the city’s glittering skyline. This month alone, two men have fallen to their deaths while working on midtown buildings under construction — a grim reminder that the skyscrapers we boast about come at a high cost, and sometimes a tragic one.
We’ll see many more projects get off the ground in the months ahead. The de Blasio administration is set to announce plans this week to rebuild areas devastated by Hurricane Sandy, and in early May will unveil a larger plan for building or maintaining 200,000 units of housing.
That’s a lot of work to be done — and thousands of men and women needed to engage in one of the most dangerous professions in America.
In 2011 and 2012, a staggering 1,513 construction workers died on the job nationwide, more than in any other industry, according to Public Citizen, a national think tank. Thirty-six of them were in New York City.
“You literally see people who are not making a ton of money losing their lives to grow the economy of this city,” says Jose Duffy, a policy advocate at the Center for Popular Democracy, a Brooklyn-based nonprofit group.
“These are people literally dying because employers aren’t putting in basic safety regulations.”
At the center of the current fight is Local Law 240, also known as the Scaffold Law, which allows construction workers who get injured or killed on the job to sue the companies that hired them. The law was passed in the 1880s as New York began constructing the world’s first skyscrapers — and losing workers maimed or killed as the structures went up.
The construction industry has been trying for more than a century to shrink or repeal the law, and allow firms to avoid or limit liability if they can prove that an accident was the fault of the dead or injured worker. Industry lobbyists duly prowled the halls of the statehouse this year.
Lawsuits are a less-than-perfect way to force the industry to take safety seriously, but there aren’t many alternatives. Public Citizen estimates it would take the Occupational Safety and Health Administration more than 100 years to inspect every New York State construction site even once.
So workers sue when they get hurt on unsafe job sites, and insurance companies charge building companies hefty premiums in exchange for paying the claims of those killed or injured workers. A recent report by pro-industry researchers at SUNY’s Rockefeller Institute estimates that the law costs New York $150 million in economic output and 12,000 jobs — expenses imposed by insurance companies, which charge construction firms.
Duffy’s group, in turn, issued its own report this week attacking the methods and motives of the Rockefeller Institute study.
While the political battle goes on in Albany, people like Walter Cabrera are caught in the middle. Speaking through a translator, Cabrera, who came here from Peru a decade ago, told me how his supervisor had him work on a defective scaffold at 240 West Broadway in 2011.
The rig didn’t have hand rails, and Cabrera ended up falling and injuring his knee, wrist and elbow. Three years and two surgeries later, he remains unable to work and is in the process of suing the company that hired him.
While Cabrera waits out the legal process in his Jackson Heights apartment, the building he helped construct — a swank Tribeca condo now called 1 North Moore — has a penthouse that listed at $8 million and units that sold for $5 and $6 million, according to curbed.com.
It would be unthinkably immoral to build the city on the injured backs of disabled immigrant workers. Until there’s a better alternative, it looks like the Scaffold Law is here to stay.
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A Collaboration to Strengthen the United States Federal Reserve System
April 16, 2018 Alexander R. Mehran Chair of the Board Federal Reserve Bank of San Francisco Dear Mr. Mehran:...
April 16, 2018
Alexander R. Mehran
Chair of the Board
Federal Reserve Bank of San Francisco
Dear Mr. Mehran:
We are writing to offer you our view about the urgency of appointing an individual who deeply understands the economic realities facing working class Americans to serve as President of the Federal Reserve Bank of San Francisco.
For all of the dynamism and strength of the US economy, it has come to be characterized most fundamentally by enormous disparities in wealth, income and opportunity that strongly correlate to race, ethnicity and geography. Failing to address significant disparities in income and net worth between major segments of our population, and particularly in segments that are driving our nation’s demographic growth, will result in a less globally competitive US economy. This is a significant economic risk for the 12th District and the United States.
The San Francisco Fed will be strengthened by having a President whose experience and expertise better reflect the large segments of our population that are not proportionally experiencing the benefits of our economy. Ensuring that this expertise and perspective is represented within the Fed is a critical way to prepare for the challenges and opportunities in our economic future. This will require considering candidates with more diverse experience including in the fields of community development and philanthropy. We submit that the San Francisco Fed has a historic opportunity to name the first Hispanic, East Asian American or Pacific Islander President of a Federal Reserve Bank.
We applaud Chairman Powell's insightful comments on the necessity for diversity in Federal Reserve System and the larger economics profession. In his testimony before the Senate Banking, Housing and Urban Affairs Committee on November 28th, 2017, he stated, “We make better decisions when we have diverse voices around the table—both at the Board of Governors and at the Reserve Banks…We’ve seen what works. It’s about recruiting. It’s about going out of your way. It’s about bringing people in. Once they’re in, it’s about giving them paths for success. And it’s about having an overall culture and company that is very focused on diversity and sticks with that focus for a long period of time. That works.” This recognition must be coupled with bold leadership and action.
In order to decide the course of monetary policy through an informed assessment of different regional economic conditions from diverse points of view, the Federal Reserve System was designed to be decentralized, independent and include representatives of the public in its governance. The Fed’s mission is undermined when regional Reserve Banks fail to recruit leaders who live up to the mandate to “represent the public.” Selections that fail to allow meaningful opportunities for public input and engagement have tended to result in the elevation of Fed insiders. This insularity undermines the Fed’s public credibility and increases the likelihood that Congress will ultimately intervene to reform the process. The process for selecting the President of the New York Fed perpetuated the status quo. We urge the San Francisco Fed to avoid the same mistake. As a first step, we call on the San Francisco Fed to include the Chair of its own Community Advisory Board in the official selection committee for the next President.
Please accept this letter as an offer of support. We will do anything we can to help identify strong candidates as well as to publicly support actions that the San Francisco Fed takes to ensure progress on diversifying its Board of Directors and executive leadership.
Thank you for your service to the 12th District and our nation.
Respectfully submitted,
California Reinvestment Coalition Center for Popular Democracy Chicanos Por La Causa Community Council of Idaho Greenlining Institute NALCAB – National Association for Latino Community Asset Builders National Coalition for Asian Pacific American Community Development TELACU
cc: Jerome Powell, Chairman, Board of Governors of the Federal Reserve Lael Brainard, Governor, Board of Governors of the Federal Reserve Randal Quarles, Vice Chairman for Supervision, Board of Governors of the Federal Reserve
San Francisco Fed Board Chair Alexander Mehran's April 20 Response to Coalition Outreach re: Collaboration Surrounding San Francisco Fed Presidential Appointment
April 20, 2018
Noel Poyo Executive Director National Association for Latino Community Asset Builders 5404 Wurzbach Rd. San Antonio, TX 78238 Dear Mr. Poyo: Thank you for your letter of April 16, 2018, concerning the appointment of the next President and Chief Executive Officer of the Federal Reserve Bank of San Francisco. We appreciate your taking the time to reach out and share your perspectives on this important undertaking. As Chair of the Board of Directors for the Federal Reserve Bank of San Francisco, I know that I speak for all of my board colleagues in saying that the appointment of a Federal Reserve Bank President is among our most important responsibilities and one that we take very seriously. We share your desire to find a qualified candidate to fill this important role that understands and is able to represent the varied needs and interests of the richly diverse people and business communities throughout the Twelfth District. The Federal Reserve Bank of San Francisco has a legacy of success with regard to recruiting, developing and promoting women and minorities into leadership positions within its senior ranks. As you are well aware, Janet Yellen served as President and Chief Executive Officer of the Bank from 2004 to 2010 before going on to become Vice Chair and later Chair of the Board of Governors of the Federal Reserve System. Under President Williams' leadership, the Bank continued to strengthen its focus on diversity and inclusion at all employee levels but particularly an10ng its leadership ranks where women now occupy over 30 percent and minorities over 45 percent of seniorlevel roles. In addition, President Williams established the Bank's Community Advisory Council in 2017 to give even stronger voice to those representing the district's underserved communities and to contribute to his ongoing economic analyses and monetary policy views. The Federal Reserve Bank of San Francisco has set a high bar for its executive leadership that we fully intend to uphold. Our board has not yet publicly communicated about the selection committee, job specifications or the processes that we will undertake to gather a list of qualified candidates for this important role. We expect to do so in the near future and will keep you apprised of our progress. For now, please know that we are absolutely committed to gathering input from various community and business leaders like you and your colleagues regarding the appointment of the next President and Chief Executive Officer of the Federal Reserve Bank of San Francisco. While I appreciate your suggestion to include Mr. Matsubayashi, who chairs the Bank's Community Advisory Council, as part of the official selection committee, the Federal Reserve Act stipulates that only the Class B and Class C directors (those not affiliated with banks or financial institutions) are eligible to participate in the appointment process. As such, Mr. Matsubayashi is unable to serve in this capacity. However, we recognize that he is doing an outstanding job leading the Community Advisory Council, and we would greatly value his input and suggestions, as well as input from you and your colleagues, regarding qualified candidates for this important role. I wish to thank you once again for reaching out and offering your support of this important undertaking. We look forward to continuing this open, constructive dialogue, and with your support, doing all that we can to find the absolute best person from a diverse candidate pool to lead the Federal Reserve Bank of San Francisco. Sincerely, Alexander R. Mehran Chair of the Board Federal Reserve Bank of San Francisco and Federal Reserve Agent cc: Danielle Beavers, Diversity and Inclusion Director, The Greenlining Institute David Adame, President and Chief Executive Officer, Chicanos Por La Causa Irma Morin, Chief Executive Officer, Community Council of Idaho Jerome Powell, Chairman, Board of Governors of the Federal Reserve Jordan Haedtler, Campaign Manager, Fed Up, Center for Popular Democracy Jose Villalobos, Senior Vice President, TELACU Lael Brainard, Governor, Board of Governors of the Federal Reserve Orson Aguilar, President, The Greenlining Institute Paulina Gonzalez, Executive Director, California Reinvestment Coalition Randal Quarles, Vice Chairman for Supervision, Board of Governors of the Federal Reserve Seema Agnani, Executive Director, National Coalition for Asian Pacific American Community Development Coalition's Response to Chair Mehran's LetterMay 4, 2018
Alexander R. Mehran Chair of the Board Federal Reserve Bank of San Francisco
Dear Mr. Mehran:
Thank you for your letter dated April 20 and for your commitment to finding a San Francisco Fed president who “understands and is able to represent the varied needs and interests of the richly diverse people and business communities throughout the Twelfth district.”
We appreciate that the San Francisco Federal Reserve Bank has shown its commitment to public representation by strengthening diversity among Reserve Bank staff. Unfortunately, that commitment has not extended to the position of President. Similarly, diversity and public representation on the San Francisco Fed’s governing board remains lacking. The Twelfth District is one of the most demographically diverse districts in the country, yet a recent analysis by the Center for Popular Democracy found that the San Francisco Fed’s board of directors is the least diverse in the Federal Reserve System.
Your letter indicated that it would not be possible to include a Community Advisory Council member on the search committee because “only the Class B and C directors (those not affiliated with banks or financial institutions) are eligible to participate in the appointment process.” We would like to clarify our request regarding Mr. Matsubayashi’s inclusion. Following established precedent, Mr. Matsubayashi can play a critical advisory role on the search committee by suggesting, interviewing, and advising on candidates under consideration. We are not suggesting or expecting that he would have final decision-making authority over which candidate is ultimately chosen.
The Federal Reserve Act clearly designates Class B and C directors as the final arbiters of who serves as president of each Reserve Bank. We do not agree that inclusion of a member of the public on the search committee would in any way violate the law. We have consulted with legal experts on the Federal Reserve Act, and they concur. Whenever a regional Reserve Bank encounters a presidential vacancy, it is customary to hire an executive search firm to identify and vet candidates who can fill that vacancy. We posit that employees of those executive search firms are participating in the search process. In 2014, outgoing Dallas Fed President Richard Fisher solicited the participation of non-Class B/C directors when he reportedly convened an advisory committee consisting of former Dallas Fed chairmen to help choose his successor.2 Freedom of Information Act requests have also revealed that members of the Board of Governors have occasionally suggested candidates to fill Reserve Bank presidential vacancies, thereby going beyond the final approval role that the Federal Reserve Act prescribes for governors. We fail to see how the inclusion of Mr. Matsubayashi on the search committee in an advisory capacity is distinguished from these other examples of involvement by non- Class B and C directors in recent Reserve Bank presidential selections.
In your letter of April 20th, you identified the establishment of the Community Advisory Council as an important step toward giving an “even stronger voice to those representing underserved communities,” in the District. The Council includes individuals selected by the San Francisco Fed itself as credible representatives of diverse communities. If the San Francisco Fed is unwilling to find a way to meaningfully include a leading member of that advisory council in the selection process for the next President, it is difficult to understand how underserved communities are truly gaining a stronger voice.
It is also difficult to be assured that people of color will be given due consideration for the position of President when communities of color and other important segments of the District’s population are not adequately reflected in the selection process. Despite clear calls for consideration of diverse candidates from members of Congress and the public, the last two Reserve Bank presidential vacancies have resulted in the selection of white, male, longtime Fed insiders. Including the Chair of the San Francisco Fed’s Community Advisory Council on the search committee in San Francisco is an essential step to maintain the credibility of the selection process for the next President of the San Francisco Fed.
In light of this clarification, we respectfully request that you consider including the Chair of the San Francisco Fed’s Community Advisory Council in the search process in a manner consistent with the Federal Reserve Act. If the San Francisco Fed chooses not to accept this recommendation, we would appreciate an explanation as to why. Regardless of your decision, we look forward to your continued collaboration as you take on the important responsibility of finding a qualified candidate to fill a policymaking role of crucial importance to the public.
Thank you for your service to the 12th District and our nation.
Respectfully submitted,
California Reinvestment Coalition Greenlining Institute Center for Popular Democracy Community Council of Idaho Chicanos Por La Causa NALCAB – National Association for Latino Community Asset Builders National Coalition for Asian Pacific American Community Development TELACU
cc: Jerome Powell, Chairman, Board of Governors of the Federal Reserve Lael Brainard, Governor, Board of Governors of the Federal Reserve Randal Quarles, Vice Chairman for Supervision, Board of Governors of the Federal Reserve








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