The Retail Industry is Marginalizing Women and People of Color. This Has to Change.
The Retail Industry is Marginalizing Women and People of Color. This Has to Change.
Source: In These Times...
Source: In These Times
The National Retail Federation is fond of pointing out that “retail means jobs.” And it’s true: the retail industry today provides one in ten private-sector jobs in the U.S., a number set to grow in the next decade.
Yet new findings show those jobs may be keeping retail workers and their families from rising up the career ladder, exacerbating our country’s growing inequality. The findings from the Center for Popular Democracy demonstrate that, for women and people of color especially, working in retail often means instability and low pay. Both groups make up the lion’s share of cashiers, movers, and other poorly paid positions and barely figure in the upper ranks of management. In general merchandise—including big-box stores such as Target and Wal-Mart—women hold more than 80 percent of cashier jobs, the lowest-paid position. And in the food and beverage industry, women make up approximately half of the workforce but less than a fifth of managers.
People of color in the retail industry are often relegated to the least lucrative jobs as well. In home and garden stores like Home Depot and Lowes, for example, employees of color account for 24 percent of the total workforce—but 36 percent of jobs that pay least.
The findings are especially disappointing given the opportunities available for those who succeed. Certain areas of retail, such as home and garden stores and car dealers, offer living wages to workers—but both women and people of color are largely shut out of these sub-sectors. And management jobs across the industry provide wages and benefits that can allow workers to support themselves and their families—but they are closed off to many.
Reducing these disparities will take more than a bigger paycheck. Retailers must make a concerted effort to establish policies that ensure women and people of color are equally represented in management positions and develop more robust training programs for workers just starting out that give them the chance to advance.
Many retailers have training policies in place, but they can be far from meaningful. Wal-Mart, for example, recently announced it was raising wages to $10, dependent on completion of a six-month training program—an onerous requirement to earn a pitifully low wage that lags well behind the retail sector average. Real training can introduce employees to a range of job duties and responsibilities, incentivizing them to learn specialized skills that allow workers to pick up shifts, advance to higher-paying positions, and bring home a full-time paycheck. Sectors like finance long ago recognized internal barriers to promotion and created programs to promote equal opportunity. Why do we not expect the same of retail?
Retailers that lack such programs, from Walmart to Gristedes, have faced multi-million-dollar class-action lawsuits from women harmed by policies that prevented them from moving upward. Companies that fail to enact real advancement policies can expect similar pushback.
Moreover, workers at the lowest levels are doubly punished with erratic, last-minute scheduling that wreaks havoc on their lives. These schedules are particularly difficult for women. Unable to find childcare at the last minute or unwilling to miss bedtime every night, moms in retail are often deemed ineligible for promotion. Ironically, climbing up the job ladder is the only way to obtain stable hours that let working women and their families thrive.
As these practices have grown worse, many workers have started fighting back, demanding schedules that let them plan their lives, be there for their families and pursue education.
Facing outside pressure, policymakers have also stepped in and accelerated the pace of change. Retailers demonstrated how fast they could change last year when they received a letter from New York’s Attorney General into their use of on-call scheduling. Within months, major retailers like The Gap agreed to significant reforms—and a quarter of a million workers no longer had to put their life on hold for a shift.
State and city policymakers are also leading the way to raise workplace standards, pursuing policies to raise wages to $15 per hour, secure improved work schedules, and guarantee earned sick time. Creating higher-paying, more secure retail jobs will boost the economy, as the low-income retail workforce will likely use any additional earnings to cover basic expenses.
Yet if industry leaders want retail to mean good jobs, they must step up to the plate. Retail workers are the neighbors who shop in our local small businesses; parents trying to help their kids with homework; students working their way through college. It’s clear that retail jobs are holding too many women and people of color back. Rather than superficial fixes, we need bold solutions that move all retail workers forward and allow their families to thrive.
Aeropostale, Disney and other retailers pledge to stop on-call shift scheduling
Aeropostale, Disney and other retailers pledge to stop on-call shift scheduling
Imagine waking up and not knowing whether you were scheduled to work. Add on to that the chaotic burden of finding a...
Imagine waking up and not knowing whether you were scheduled to work. Add on to that the chaotic burden of finding a babysitter last minute.
These six companies — Aeropostale, Carter’s, David’s Tea, Disney, PacSun and Zumiez — all required their employees to call an hour or two before a scheduled shift to find out if they would be assigned to work that day.
But no more.
A coalition that included New York Attorney General Eric Schneiderman announced today that on-call shift scheduling has come to an end for those companies.
“Today, we are seeing retailers across America take steps to curb unnecessary and unfair on-call scheduling," said Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy. "We are especially glad that employers like Disney and Carter's, whose brands promote putting families first, will stop using on-call shifts that are notorious for wreaking havoc on families' balance and puts undue stress on children."
The announcement follows an inquiry by Schneiderman and eight other attorneys general to make sure that more than 50,000 workers nationwide will no longer be subject to such a "burdensome scheduling practice." The agreements with these six companies are the latest in a series of groundbreaking national agreements secured by the New York Attorney General’s office to end on-call scheduling at a number of major retailers.
Fifteen large retailers received a joint inquiry letter in April seeking information and documents related to their use of on-call shifts. Other than the six mentioned, the list included American Eagle, Payless, Coach, Forever 21, Vans, Justice Just for Girls, BCBG Maxazria, Tilly’s, Inc. and Uniqlo. The letter stated that unpredictable work schedules "take a toll on employees."
"Without the security of a definite work schedule, workers who must be 'on call' have difficulty making reliable childcare and elder-care arrangements, encounter obstacles in pursuing an education, and in general experience higher incidences of adverse health effects, overall stress, and strain on family life than workers who enjoy the stability of knowing their schedules reasonably in advance," the letter continued.
After discussions with the Schneiderman and his fellow AGs, none of the retailers will be using on-call shifts. Also, Disney and others have agreed to provide employees with their work schedules at least one week in advance of the start of the work week as a way to plan child care and other obligations ahead of time.
“People should not have to keep the day open, arrange for child care, and give up other opportunities without being compensated for their time,” said Schneiderman. “I am pleased that these companies have stepped up to the plate and agreed to stop using this unfair method of scheduling.”
The announcement marks a continuation of Schneiderman's mission, which began last year when Abercrombie & Fitch, Gap, J.Crew, Urban Outfitters, Pier 1 Imports, and L Brands — the parent company of Bath & Body Works and Victoria’s Secret — all agreed to end the practice of assigning on-call shifts.
New York State has a “call-in-pay” regulation that provides, “An employee who by request or permission of the employer reports for work on any day shall be paid for at least four hours, or the number of hours in the regularly scheduled shift, whichever is less, at the basic minimum hourly wage.” (12 NYCRR 142-2.3).
By Anthony Noto
Source
De Blasio’s Executive Order Increases, Expands Living Wage
Amsterdam News - October 9, 2014, by Stephon Johnson - Last week, New York City Mayor Bill de Blasio signed an...
Amsterdam News - October 9, 2014, by Stephon Johnson - Last week, New York City Mayor Bill de Blasio signed an executive order to increase and expand the living wage to benefit more New Yorkers.
At City Hall, while announcing the signing of his executive order, De Blasio said “$13.13 for those without benefits, $11.50 for those who have health insurance and other benefits. This applies to employers, excuse me, employees, I should say, of large groups of employers who do business with the city. Meaning, there’s a lot of companies that do business with the city, that come to the city for subsidies. We think if you want a subsidy, you can prove the need for a subsidy. We want to help you achieve your goals, but we have a standard we hold.”
De Blasio continued, “We need to make sure people are paid a living wage. That’s a fair exchange for that subsidy. What it means—let me put this in real terms—what this means, is the difference between the $8-an-hour minimum wage right now, and the $13.13 that will take effect immediately for those employees of companies that get subsidies going forward. That is a difference of over $10,000 dollars in earnings a year. $10,000. Someone who would have made $16,000—not enough to get by—will now make over $27,000 a year. And that’s a difference maker.”
According to de Blasio, any project that gets more than a million dollars in city subsidies qualifies, stating that it will reach people in lines of work like retail, food services and construction.
Advocates for a raise in the minimum wage have said this action was a long time coming. Shantel Walker, a Papa John’s employee who makes $8.50 an hour and who is a member of Fast Food Forward, praised de Blasio’s actions.
“Nearly two years ago, 200 fast-food workers in New York City walked off our jobs, calling for $15 and union rights,” said Walker in a statement. “Our demand may have sounded crazy at the time, but more and more, $15 is becoming a reality for workers across the country. As we’ve gone on strike again and again and a movement that started here in New York has spread to 150 cities, $15 suddenly doesn’t seem so impossible. From Seattle to Los Angeles to San Francisco and now New York, cities are raising wages so we don’t have to rely on public assistance to support our families.”
Walker also stated that the recent developments are a sign, to her, that minimum wage advocates are on the right side of history.
“While he works with Gov. Cuomo to raise wages for all New Yorkers, Mayor de Blasio’s move today to put workers at city-subsidized projects on a path to $15 is a sign that we are winning,” Walker said. “It’s a step in the right direction and helps push us forward in our fight for $15 for workers across the entire country.”
While the city’s working class has achieved a major victory, the state’s working class is still making the push collectively. Andrew Friedman, co-executive director of the Center for Popular Democracy, pushed for Albany to follow suit in a statement.
“The Albany wage board should eliminate the tipped minimum wage to make this vision a reality and end the wage segregation that traps workers in poverty—workers who are overwhelmingly female and of color,” said Friedman. “Partnering with progressive local, state and federal leadership means we can work together to afford a dignified life for all residents, which means comprehensive policies that include a $15 minimum hourly wage, a predictable and fair workweek, paid sick days and a healthy macro-economy that nurtures equity, creates viable new jobs and protects us from risk-taking by financial institutions.”
Back in the five boroughs, Brooklyn Borough President Eric Adams praised de Blasio for the executive order, citing it as another example of New York City leading the pack. He said that de Blasio had “reaffirmed his commitment to civic innovation and our residents’ welfare by raising the living wage and furthering its reach to thousands more workers. This is a measure that recognizes the cost of living challenges that New Yorkers face and builds a meaningful bridge over the inequality gap we have sought to close across Brooklyn and the rest of the five boroughs.
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Activists Protest Universities Over Investments In Puerto Rico Bondholders
Activists Protest Universities Over Investments In Puerto Rico Bondholders
A coalition of social and economic justice groups has launched a one-week campaign to end what they view as problematic...
A coalition of social and economic justice groups has launched a one-week campaign to end what they view as problematic university investments. The New York-based Center for Popular Democracy (CPD) and partner organizations including three Make the Road branches will hold six protests along the East Coast, calling on Columbia, Harvard and Yale to pull their investments out of hedge funds that hold Puerto Rican debt and have advocated austerity measures in the U.S. territory, leading to mass school closings and higher tuition costs.
Read the full article here.
A Push to Give Steadier Shifts to Part-Timers
New York Times - July 15, 2014, by Steve Greenhouse - As more workers find their lives upended and their paychecks...
New York Times - July 15, 2014, by Steve Greenhouse - As more workers find their lives upended and their paychecks reduced by ever-changing, on-call schedules, government officials are trying to put limits on the harshest of those scheduling practices.
The actions reflect a growing national movement — fueled by women’s and labor groups — to curb practices that affect millions of families, like assigning just one or two days of work a week or requiring employees to work unpredictable hours that wreak havoc with everyday routines like college and child care.
The recent, rapid spread of on-call employment to retail and other sectors has prompted proposals that would require companies to pay employees extra for on-call work and to give two weeks’ notice of a work schedule.
Vermont and San Francisco have adopted laws giving workers the right to request flexible or predictable schedules to make it easier to take care of children or aging parents. Scott M. Stringer, the New York City comptroller, is pressing the City Council to take up such legislation. And last month, President Obama ordered federal agencies to give the “right to request” to two million federal workers.
The new laws and proposals generally require an employer to discuss a new employee’s situation and to consider scheduling requests, but they do not require companies to accommodate individual schedules. Many businesses have opposed these measures, arguing that they represent improper government intrusion into private operations.
In a referendum last year, voters in SeaTac, Wash. — the community near Seattle that also passed the nation’s highest minimum wage, $15 an hour for some workers — approved a measure that bars employers from hiring additional part-time workers if any of their existing part-timers want more hours. The move was a response to complaints from workers that they were not scheduled for enough hours to support their families. Some San Francisco lawmakers are seeking to enact a similar regulation.
Representative George Miller of California, the senior Democrat on the House Committee on Education and the Workforce, plans to introduce legislation this summer that would require companies to pay their employees for an extra hour if they were summoned to work with less than 24 hours’ notice. He is also proposing a guarantee of four hours’ pay on days when employees are sent home after just a few hours — something that happens in many restaurants and retailers when customer traffic is slow.
That happened to Mary Coleman. After an hourlong bus commute, she arrived at her job at a Popeyes in Milwaukee only to have her boss order her to go home without clocking in — even though she was scheduled to work. She was not paid for the day.
“It’s becoming more and more common to put employees in a very uncertain and tenuous position with respect to their schedules, and that ricochets if workers have families or other commitments,” Mr. Miller said. “The employer community always says it abhors uncertainty and unpredictability, but they are creating an employment situation that has huge uncertainty and unpredictability for millions of Americans.”
While Mr. Miller acknowledges that his bill is unlikely to be enacted anytime soon — partly because of opposition from business (and a Republican-controlled House), he said the bill would bring attention to what he called often callous scheduling practices. His bill, similar to one in the Senate sponsored by Bob Casey, Democrat of Pennsylvania, has a “right to request” provision that would bar employers from denying requests from workers with caregiving or school-related conflicts unless they had a “bona fide” business reason.
Corporate groups protest that such measures undercut efficiency and profits. “The hyper-regulation of the workplace by government isn’t conducive to a positive business climate,” said Scott DeFife, an executive vice president of the National Restaurant Association. “The more complications that government creates for operating a business, the less likely we’ll see a positive business environment that’s good for the economy and increasing jobs.”
Mr. DeFife pointed out that the daily ebb and flow of customers necessitated flexibility in scheduling.
David French, a senior vice president of the National Retail Federation, said many people chose careers in retail because of the flexible work hours.
“These proposals may sound reasonable, but if you unpack them, they could be very harmful,” Mr. French said. “Where employers and employees now work together to solve scheduling problems, you’ll have a very bureaucratic environment where rigid rules would be introduced.”
While many of these workers are not unionized, the labor movement has often battled against part-time work and ever-changing schedules. But as unions have grown weaker, employers have felt freer to employ part-timers and use more volatile scheduling. Unions still push for workers to get more hours — and those pressures are one reason Macy’s and Walmart have adopted programs letting employees claim additional, available shifts by going onto their employers’ websites.
In a climate where many retailers, restaurants and other businesses are still struggling after the recession, economists point to the increased uncertainty faced by employees. About 27.4 million Americans work part time. The number of those part-timers who would prefer to work full time has nearly doubled since 2007, to 7.5 million. According to Bureau of Labor Statistics data, 47 percent of part-time hourly workers ages 26 to 32 receive a week or less of advance notice for their schedule.
In a study of the data, two University of Chicago professors found that employers dictated the work schedules for about half of young adults, without their input. For part-time workers, schedules on average fluctuated from 17 to 28 hours a week.
“Frontline managers face pressure to keep costs down, but they really don’t have much control over wages or benefits,” said Susan J. Lambert, a University of Chicago professor who interpreted the data. “What they have control over is employee hours.”
Ms. Lambert said flexible, not rigid or unpredictable, hours would become as important an issue as paid family leave. “The issue of scheduling is going to be the next big effort on improving labor standards,” she said. “To reduce unpredictability is important to keep women engaged in the labor force.”
David Chiu, president of the San Francisco Board of Supervisors, has created a business-labor group that is trying to find the middle ground.
“We’ve learned that predictability in hours is important not just to help workers juggle their lives, but for economic security — to help workers take a second job to live in expensive cities like San Francisco or New York,” Mr. Chiu said. “We’re confident that we can move forward with policies that work for workers as well as business’s bottom line.”
Sharlene Santos says her part-time schedule at a Zara clothing store in Manhattan — ranging from 16 to 24 hours a week — is not enough. “Making $220 a week, that’s not enough to live on — it’s not realistic,” she said.
After Ms. Santos and four other Zara workers recently wrote to the company, protesting that they were given too few hours and received just two days’ notice for their schedule, the company promised to start giving them two weeks’ advance notice.
Fatimah Muhammad said that at the Joe Fresh clothing store where she works in Manhattan, some weeks she was scheduled to work just one day but was on call for four days — meaning she had to call the store each morning to see whether it needed her to work that day.
“I felt kind of stuck. I couldn’t make plans,” said Ms. Muhammad, who said she was now assigned 25 hours a week.
A national campaign — the Fair Workweek Initiative — is pushing for legislation to restrict these practices in places including Milwaukee, New York and Santa Clara, Calif. The effort includes the National Women’s Law Center, the United Food and Commercial Workers union and the Retail Action Project, a New York workers’ group.
“Too many workers are working either too many or too few hours in an economy that expects us to be available 24/7,” said Carrie Gleason, director of the Fair Workweek Initiative and an organizer at the Center for Popular Democracy, a national advocacy group. “It’s gotten to the point where workers, especially women workers, are saying, ‘We need a voice in how much and when we work.' ”
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CORRUPT CONGRESSMEN DEMAND DIVERSITY FROM FEDERAL RESERVE
CORRUPT CONGRESSMEN DEMAND DIVERSITY FROM FEDERAL RESERVE
Do you know what our divided and divisive political system needs? More tribalism. And who would know that better than...
Do you know what our divided and divisive political system needs? More tribalism.
And who would know that better than Cherokee Senator Elizabeth Warren who has a letter out complaining that there are too many white men on the board of the Federal Reserve. The letter is co-signed by the usual clown show of the Congressional Black Caucus and the Progressive Caucus.
The first signature belongs to John Conyers whose wife pleaded guilty to a conspiracy to commit bribery. Also present are the likes of Maxine Waters and Frederica Wilson, Gwen Moore, former Nation of Islam supporter Keith Ellison, Bernie Sanders, Al Franken, Bernice Johnson and Alcee Hastings, who was impeached for bribery.
Bernice Johnson had her own ethical issues.
Longtime Dallas congresswoman Eddie Bernice Johnson has awarded thousands of dollars in college scholarships to four relatives and a top aide's two children since 2005, using foundation funds set aside for black lawmakers' causes. Eddie Bernice Johnson
The recipients were ineligible under anti-nepotism rules of the Congressional Black Caucus Foundation, which provided the money. And all of the awards violated a foundation requirement that scholarship winners live or study in a caucus member's district.
What's This?
And Maxine Waters? She's got a record.
The influential congresswoman has helped family members make more than $1 million through business ventures with companies and causes that she has helped, according to her hometown newspaper.
A few years ago Waters was investigated by the House Ethics Committee for steering $12 million in federal bailout funds to a failing Massachusetts bank (that subsequently got shut down by the government) in which she and her board member husband held shares.
Waters has also come under fire for skirting federal elections rules with a shady fundraising gimmick that allows her to receive unlimited amounts of donations from certain contributors. For years the veteran Los Angeles lawmaker has raked in hundreds of thousands of dollars in short periods of time by selling her endorsement to other politicians and political causes for as much as $45,000 a pop instead of raising most of her campaign funds from individuals and political action committees.
Then there's Alan Grayson who has his own hedge fund.
Rep. Alan Grayson manages hedge funds that use his name in their title, a practice prohibited by congressional ethics rules designed to prevent members from using their elected post for financial gain.
The specific ethics provisions tied to the funds Grayson manages, two of which are based in the Cayman Islands, sit in a sort of gray area and have never been examined by the House Ethics Committee.
Sure. Let's let these people dictate diversity at the Fed.
By Daniel Greenfield
Source
Calling all mayors: This is what police reform should look like
The coverage of police brutality over the last year, both in the mass media and through civilian video footage, has...
The coverage of police brutality over the last year, both in the mass media and through civilian video footage, has been a wake-up call for many Americans, shining a spotlight on what many communities of color already knew—our policing and criminal justice systems are infused with systemic racial bias.
Thanks to the relentless work of community advocates, the aggressive police tactics that routinely threaten the lives and safety of people of color have garnered unprecedented national attention.
This attention, however, is no guarantee of real change. In fact, one year after Michael Brown’s killing, police shootings and protests continue in Ferguson, Missouri.
Despite the growing body of evidence on the nature and extent of the problem, the path towards meaningful reform has not been clear, leaving many local leaders at a loss as to how to move forward.
But the actions of local government—mayors in particular—couldn’t be more important. Channeling the current momentum into transformative change will require leadership across local, regional, and federal levels, but mayors are in a unique position to be the vanguard, taking trailblazing steps towards transforming how police departments interact with their communities.
While some have bemoaned a lack of consensus around a roadmap to police reform, those on the ground—community members, organizers, elected officials, police officers and chiefs—raise the concepts of accountability, oversight, community respect, and limiting the scope of policing again and again. Our organizations spent close to a year collecting success stories and insight from communities across the country, from Los Angeles to Cleveland to Baltimore, to create a toolkit for advocates working to end police violence. We identified several common principles that all mayors can—and should—put in place to establish sustainable, community-centered and controlled policing.
Several of these principles have received national attention, such as demilitarizing police departments, providing police recruits with training in racial bias, de-escalation, and conflict mediation, and making police more accountable to communities through civilian oversight bodies and independent investigations of alleged police misconduct. Thanks to the commitment of a proactive mayor, this kind of community accountability is already being put in place in Newark, which just approved a progressive Civilian Complaint Review Board that provides landmark community oversight in a city with a long history of police brutality.
Mayors should also institute policies that scale back over-policing, especially for minor ‘broken-windows’ offenses that criminalize too many communities and burden already-impoverished households with exorbitant fees and fines. Ferguson’s court system became an infamous example, but routine targeting of and profiteering off of low-income communities of color is pervasive throughout the country. Local governments must not only fix broken municipal court systems but should also scale back the tide of criminalization through decriminalizing offenses that have nothing to do with public safety. With the strong support of the mayor, the Minneapolis City Council recently decriminalized two non-violent offenses—spitting and lurking—which had been used to racially profile.
The last piece of the puzzle may be politically controversial, but is absolutely fundamental to transforming our broken systems of policing and criminal justice and supporting safer and stronger communities. Local governments cannot continue to pour ever-increasing sums into city police budgets, while ignoring the most basic needs of residents living in over-policed areas: better schools, job opportunities, access to healthy food, affordable housing, and public transportation. Neighborhoods most afflicted by aggressive policing and high incarceration rates also have high levels of poverty, unemployment, and racial segregation. In many urban neighborhoods where millions of dollars are spent to lock up residents, the education infrastructure and larger social net are completely crippled. Investments to build up vulnerable communities need to be viewed as part of a comprehensive public safety strategy.
Baltimore mayor Stephanie Rawlings-Blake called for a Department of Justice investigation of the city’s police department only after tragedy struck and the community rose up in protest. It is time for the mayors of this country to instead take a proactive Mayoral Pledge to End Police Violenceto heal the wounds of broken policing and criminal justice policies before another devastating police killing.
Blackwell is the founder and CEO of PolicyLink. Friedman is the co-executive director of the Center for Popular Democracy.
Source: The Hill
One Word Could Be Worth a Million Jobs
One Word Could Be Worth a Million Jobs
Supporting a strong job market is a big part of the U.S. Federal Reserve's mandate. Fed officials, though, interpret...
Supporting a strong job market is a big part of the U.S. Federal Reserve's mandate. Fed officials, though, interpret that goal differently than most observers do. For the economy's sake, Congress should step in to resolve the discrepancy.
Specifically, the Federal Reserve Act instructs the central bank to promote "maximum employment" and "stable prices." Most people understand these instructions as meaning the Fed should seek to generate as much demand for workers as possible without causing an unduly large increase in prices.
The website of the Fed's Board of Governors, however, makes a slight modification to the jobs mandate: "maximum sustainable employment." Innocuous as it may seem, that one word can make a big difference.
How? Well, suppose inflation is running below the Fed's 2 percent target and the unemployment rate is at 5 percent, which officials consider to be its long-run level (pretty much the current situation). They can choose between two monetary policies, which are expected to result in the following paths for the unemployment rate:
Most observers would opt for the second policy. It's more aggressive, so it will get inflation back to target sooner. Even better, the unemployment rate is the same or lower every year, and by a significant amount: One percentage point is worth more than a million jobs.
The word "sustainable," however, means that the Fed views any deviation from the long-run unemployment rate -- up or down -- as undesirable. When officials speak of the economy “overheating” or “running hot” in the absence of inflationary pressures, this is what I think they have in mind. So they would see unemployment as running too low under policy 2.
Some Fed officials worry that “overheating” could trigger a recession. (I don’t understand the precise economic mechanism, but let’s leave that aside.) They think policy 2 might generate the following path for the unemployment rate:
Policy 2: Possible Recession Outcome
In 2019 and 2020, the economy falls into recession. From the Fed’s perspective, this unemployment path is terrible, because the rate is either too low or too high for the next four years.
It's easy to imagine, though, that many people would be willing to trade the risk of recessionary pain in 2019 and 2020 for the near-term gain of 2017 and 2018. They might even believe there's some chance that policy 2 will generate an outstanding outcome -- if, for example, the long-run unemployment rate is actually lower than the Fed thinks it is. Here's how that would look:
This interpretational divide was on full display last month, when Fed officials met with representatives of the pro-employment activist group Fed Up. The activists largely assumed that the central bank was contemplating near-term interest-rate increases to keep inflation in check. But most of the officials downplayed inflation, invoking instead the need to keep the economy from running too hot (which some said could lead to a recession).
I find it hard to believe that the Fed's approach is consistent with Congress's intent as expressed in the Federal Reserve Act. That said, it's really up to legislators to provide an unequivocal answer, which could matter a lot for the economy over the next few years.
By Narayana Kocherlakota
Source
Hurricane Maria vigil on track in Hartford
Hurricane Maria vigil on track in Hartford
Despite confusion over permits, police and city officials say they’re working with two local community groups to help...
Despite confusion over permits, police and city officials say they’re working with two local community groups to help them hold a march and vigil Thursday to commemorate the one-year anniversary of Hurricane Maria.
Read the full article here.
Contractors and Workers at Odds Over Scaffold Law
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of...
New York Times - December 17, 2013, by Kirk Semple - In 1885, as new engineering inventions were ushering in the era of the skyscraper, lawmakers in New York State enacted a law intended to safeguard construction workers who were finding themselves facing increasing dangers while working at ever-greater heights.
That measure, which became known as the Scaffold Law, required employers on building sites to ensure the safety of laborers working above the ground. Since then, some form of the legislation has remained on the books despite repeated attempts to repeal it.
But a lobby of contractors, property owners and insurers has in recent months renewed a campaign against the law, arguing that no less than the future of the state’s construction industry is at stake.
They argue that the law is antiquated and prejudicial against contractors and property owners, and essentially absolves employees of responsibility for their own accidents, leading to huge settlements. The payouts, they contend, have in turn led to skyrocketing insurance premiums that are hampering construction and the state’s economic growth.
On Tuesday, a coalition of contractors, including a newly formed alliance of firms owned by women and minorities, announced the start of an advertising and lobbying blitz in Albany and New York City. But a counter-lobby of unions, workers’ advocates and trial lawyers is pushing back just as fiercely. The law, they argue, is essential to ensuring the safety of workers in some of the world’s most dangerous jobs, particularly those employed by shoddy contracting firms that cut corners to save money. The law, they say, holds developers and contractors accountable for keeping job sites safe.
Gov. Andrew M. Cuomo this week acknowledged the politically loaded atmosphere surrounding the Scaffold Law, but suggested that he was open to the possibility of modifying the law.
The law states that contractors and property owners are responsible for ensuring that scaffolds, hoists and other devices that enable aboveground building construction and repair “shall be constructed, placed and operated as to give proper protection to a person so employed.”
When injuries result from a violation of those terms, the law says, contractors and owners are liable. There is no mention of worker responsibility. Under the law, however, the plaintiff still must show that a violation of the law’s standards occurred and that the violation caused the injury.
But those seeking to change the law want to incorporate a standard of “comparative negligence.” This amendment — described in a state bill submitted earlier this year — would require a jury or arbiter to consider whether the liability of the defendants, and thus the amount of damages, should be reduced for cases in which the worker’s negligence or failure to follow safety procedures contributed to the accident.
Opponents argue that the amendment would reduce the incentive for the property owner and contractors to take necessary safety precautions.
“This law protects both union and nonunion workers and creates a sense of accountability on these job sites,” said Gary LaBarbera, president of the Building and Construction Trades Council of Greater New York, an umbrella group for unionized construction workers. “If the law was modified, the workers would lose their voice.”
But those seeking to alter the law say the amendment would not eliminate the owners’ and contractors’ motivation to keep their workplaces safe because they would still face the possibility of shouldering large payouts, even if they were found only partly responsible for an accident.
“The notion that a contractor or owner would want to do anything to undermine the safety of the worker on the job doesn’t make sense,” said Pamela Young, associate general counsel of the American Insurance Association.
Workers’ advocates argue that erosion of the Scaffold Law would have a disproportionate impact on minority and immigrant laborers, who, the advocates say, are more likely to work for nonunion companies that may not provide proper safety training and equipment.
Immigrants, the advocates said, are less likely to speak the same language as their bosses on a job site and more likely to fear being fired if they demand a safer workplace.
From 2003 to 2011, federal safety regulators investigated 136 falls “from elevation” that killed workers on construction sites in New York, according to a recent report by Center for Popular Democracy, an advocacy group. Of those workers, about 60 percent were Latino, foreign-born or both. That rate rose to 88 percent among fatal falls in New York City.
Some trial lawyers have been effective at using the law to secure large settlements. Of the 30 largest settlements in 2012, at least 14 were in cases brought under state labor laws and most of those involved falls from ladders or scaffolding, according to The New York Law Journal. The awards ranged from $3 million to $15 million.
Weislaw, a Polish immigrant, was the plaintiff in a liability case that was settled last month. (He spoke on the condition that his surname not be used in this article, out of concern for his privacy.) He had been part of a crew repairing the roof of a one-story public school building in Long Beach, on Long Island. While he was working on the roof one spring day in 2010, he was concentrating so hard on his task that he lost track of the edge of the roof and fell, he said, suffering multiple fractures.
“I will most likely never be able to return to work,” he said.
Weislaw filed a lawsuit under the Scaffold Law arguing that he had not been provided with proper protection, such as a safety line or a spotter.
The case settled for $2.7 million, said David Scher, a lawyer from the firm that represented him.
Critics of the Scaffold Law say the way it is written makes these sorts of cases easy to win.
“It’s a gold mine for the plaintiffs’ bar,” said Mike Elmendorf, president and chief executive of Associated General Contractors of New York State. “When you get one of these cases, it’s largely about how much it’s going to cost.”
These high payouts, he and others contend, have driven up insurance rates, knocking smaller contractors, particularly those run by minorities and women, out of business and forcing others to suspend work, costing thousands of jobs.
They argue that the impact is as high on government projects as it is on private ones, and that the soaring cost of liability insurance is forestalling the repair and construction of public works projects, such as schools, bridges and roads. The New York City School Construction Authority said in a statement on Monday that its liability insurance costs for 2014 would be nearly as much as those for the three-year period from 2011 to 2013.
But in recent weeks, the law’s defenders have employed a new gambit, demanding that the insurance companies open their accounting ledgers to prove whether the Scaffold Law is, in fact, responsible for the rate increases. Insurance executives have vowed to fight any demands to disclose proprietary information that might somehow undermine their competitive advantages.
State Assemblyman Francisco P. Moya, a Democrat who represents a heavily immigrant and Latino area of Queens, said he planned to submit a bill that would expand reporting requirements for insurance companies and help lawmakers assess whether the Scaffold Law needed to be changed.
“Show us how much the payouts are,” Mr. Moya said. “Once we see that, we’ll have a better understanding.”
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