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Posts Tagged ‘Elizabeth Warren’

Corporate America freaks out over Elizabeth Warren

Wednesday, October 23rd, 2019

Ben White

Democratic-leaning executives on Wall Street, in Silicon Valley and across the corporate world are watching Elizabeth Warren’s rise to frontrunner status in the Democratic primary with an increasing sense of existential panic.

And they feel mostly paralyzed to do much about it — other than throwing money at other candidates and praying.

Warren’s grassroots fundraising prowess shows she doesn’t need big corporate money. She’s got $26 million in the bank. And taking her on directly just makes her stronger with her populist base. Any attack on Warren from the tech or Wall Street worlds just turns into an immediate Warren talking point.

When CNBC host Jim Cramer did a piece on money managers freaking out about Warren, the candidate grabbed the clip and tweeted above it: “I’m Elizabeth Warren and I approve this message.”

It’s led to fairly widespread frustration that Warren’s rise seems unstoppable.

“There’s really not a damn thing you can do about Warren. There is nothing,” said one prominent Wall Street hedge fund manager and Democratic bundler who is raising money for a Warren rival. “It’s the same thing Republicans went through with Trump. You look at her and think what she is going to do is going to be horrible for the country. But if you say anything about it you just make her stronger.”

This fund manager, like a half-dozen other executives interviewed for this story, declined to be identified by name for fear of being directly attacked by Warren. Some, however, are happy to ring the alarm, no matter how Warren might use their words.

“What is wrong with billionaires? You can become a billionaire by developing products and services that people will pay for,” said Leon Cooperman, a billionaire former Goldman Sachs executive who is now CEO of investment firm Omega Advisors and who predicts a 25 percent market drop should Warren become president. “I believe in a progressive income tax and the rich paying more. But this is the fucking American dream she is shitting on.”

Earlier in the campaign, executives suggested they found Warren at least a more palatable alternative to Sen. Bernie Sanders (I-Vt.), an avowed democratic socialist. Warren, a former Republican, has said she’s a capitalist “to my bones.” Even now, some billionaires are urging calm.

“‘Ninety-seven percent of the people I know in my world are really, really fearful of her,” billionaire Michael Novogratz told Bloomberg over the weekend. “It’s a little carried away.”

But more broadly the mood has shifted as Warren now leads Biden in some national and early state polls. And she has intensified her rhetoric toward Wall Street and the tech industry in particular.

At last week’s debate she stressed that she would no longer take any money at all from tech or Wall Street executives, after having success with tech donors earlier in the campaign.

“If we are going to talk about Wall Street and having some serious regulation over Wall Street, we should ask if people are funding their campaigns by taking money from those executives,” Warren said, an indirect dig at former Vice President Joe Biden and South Bend, Ind., Mayor Pete Buttigieg, both of whom have held high-dollar Wall Street fundraisers.

“You can’t go behind closed doors and take the money of these executives and then turn around and expect that these are the people who are actually finally going to enforce the laws. We need campaign finance rules and practices.”

The current strategy among centrist, corporate-friendly Democrats is mostly to hope and pray that Biden — or perhaps Buttigieg or even Sen. Amy Klobuchar (D-Minn.) — can still take her out and prevent a possible Warren presidency that could upend business models and reshape entire industries.

Most are not ready to jump over to Trump, but some at least ponder the idea.

“I don’t assume all these people would go to Trump. Plenty of them think there is much more at stake than just narrow industry interests or tax rates,” a second hedge fund executive said. “There are a bunch of financial people that at the end of the day, if she’s the candidate, they will still support her. They won’t raise money for her because they can’t. But they will still support her because of what the alternative is.”

Among other things scaring corporate America and rich people, Warren has pledged to institute wealth taxes and break up tech giants and Wall Street banks. She has taken sharpest aim at the private equity industry, introducing the “Stop Wall Street Looting Act of 2019” that would essentially wipe out some of the industry’s most lucrative practices.

Much of this would be hard to enact without large majorities in both houses of Congress. But Warren could do a great deal in the regulatory world to appoint strict overseers and push much more stringent rules while rolling back the Trump administration’s deregulation efforts.

As of now, there is no organized Stop Warren strategy.

The closest thing that has emerged lately is a vague whisper campaign that former New York City Mayor Michael Bloomberg could ride into the Democratic primary at the last minute if it appears Biden is really failing. But even Bloomberg’s closest confidants admit there is little chance he could succeed.

“Mike’s calculation, rightly or wrongly, is that the same people who back Biden would back him,” said a person close to the former mayor. “But it’s by no means clear to him or to anyone that it’s even possible.”

Political observers view a late Bloomberg run as even less likely to succeed.

“First of all Bloomberg is older than Biden, even though he doesn’t look it,” said Greg Valliere, chief U.S. strategist at AGF Investments, the Toronto financial firm. “And the big impediment is he’s out of step with his own party. The activist base would be appalled by someone so pro-Wall Street.”

Biden’s dip in the polls — coupled with his troubling report of just $9 million in cash on hand at the end of the third quarter — has anti-Warren Wall Street types looking hard at other Democrats, led for the moment by Buttigieg, who has built a strong core of well-heeled fundraisers led by hedge fund manager Orin Kramer.

According to recently released figures, Buttigieg raised around $25,000 from executives at finance firms including Goldman Sachs, Morgan Stanley, JPMorgan and hedge fund giants like Bridgewater, Renaissance Technologies and Elliott Management in the third quarter. And he raised around $150,000 from donors who described their occupation as “investor.”

Overall, Buttigieg is now in much stronger financial shape than Biden with around $23 million in the bank at the end of the third quarter to around $9 million for the former vice president. Klobuchar has just $3.7 million, which leads many big donors to think she doesn’t have a shot to last long after early voting in Iowa and New Hampshire next year.

Buttigieg raising significant cash from Wall Street executives may make him a target of both Warren and Sanders. But a Buttigieg campaign official said it would not have an influence on his policies toward the industry. “People are coming to us because of Pete’s message and they are seeing and hearing real excitement and enthusiasm around him,” the official said. “We have over 600,000 individual donors to this campaign and our grassroots energy is very, very strong. We have events where people give more money and events where people give $10 or $15 and people who give $1 or $2 online.”

Perhaps the biggest hope among centrist Democrats is not that Biden finally catches fire again or that Buttigieg bursts to the top. It’s that Warren’s time as the frontrunner takes a toll. Signs of that emerged in the Democratic debate last week as Klobuchar and others went after Warren for not being clear how she would pay for “Medicare for All” and refusing to say that she would raise taxes. Warren is now pledging to come up with a plan to pay for her plan.

Some executives also say they hope that moderate Democrats in swing Senate and House seats up in 2020 will begin to get scared of running with Warren at the top of the ticket and start to agitate harder for Biden or someone else.

“What it’s going to take is moderate Democrats in swing states and swing districts who are terrified of running with her at the top of the ticket coming out and doing something,” said a senior executive at one of Wall Street’s largest banks. “But nobody wants to piss her off. Nobody wants to be on her bad list.”

This executive said if Warren gets to the general election that Trump — whose campaign had $83 million in the bank at the end of the third quarter — would paint her as a threat to the American economy. “No one has really run opposition research on her yet. She’s skated pretty clean up till now. If you get her in the general, Trump and the RNC will paint her to the left of Mao. You look at the history of John Kerry and Michael Dukakis and Massachusetts liberals and it’s not very good.”

This article was originally published at Politico on October 23, 2019. Reprinted with permission. 

About the Author: Ben White is POLITICO Pro’s chief economic correspondent and author of the “Morning Money” column covering the nexus of finance and public policy.

Prior to joining POLITICO in the fall of 2009, Mr. White served as a Wall Street reporter for the New York Times, where he shared a Society of Business Editors and Writers award for breaking news coverage of the financial crisis.

From 2005 to 2007, White was Wall Street correspondent and U.S. Banking Editor at the Financial Times.

White worked at the Washington Post for nine years before joining the FT. He served as national political researcher and research assistant to columnist David S. Broder and later as Wall Street correspondent.

White, a 1994 graduate of Kenyon College, has two sons and lives in New York City.

Elizabeth Warren Says Make the Rich Pay for Striking Chicago Teachers’ Demands

Wednesday, October 23rd, 2019

Chicago public school teachers and support staff—on strike since October 17 for smaller class sizes and improved services for students—received a boost Tuesday when they were joined on the picket lines by Democratic presidential hopeful Elizabeth Warren.

The Massachusetts senator joined strikers with the Chicago Teachers Union (CTU) and SEIU Local 73 outside Oscar DePriest Elementary in the Austin neighborhood on the city’s West Side. “The CTU and SEIU are out on strike for our children. They’re out on strike for working people everywhere,” Warren, who was once a public school teacher herself, told reporters. “I’m here to stand with every one of the people who stand for our children every day.”

Warren’s visit comes as talks between the unions and the city appear to have broken down. On Monday, Mayor Lori Lightfoot wrote an open letter to CTU president Jesse Sharkey, calling on the union to end the strike without a contract as negotiations continue—essentially telling the teachers to surrender their only leverage at the bargaining table.

“We are likely not going to see a quick settlement to the ongoing strike,” Sharkey said at a press conference after receiving the mayor’s letter. “I came in today with raised expectations and hope, but the letter I received today dashed my hope for a quick settlement.”

At the same time, 7,500 Chicago Public Schools (CPS) support staff with SEIU Local 73—who have also been on strike since October 17—had their first bargaining session with the city since the work stoppage began on Monday. These workers include custodians, bus aides, special education classroom assistants, and security guards making less than $35,000 a year. The bargaining session lasted only 12 minutes before city negotiators walked away without bringing forward any new proposals, according to SEIU Local 73.

On the campaign trail earlier this year, Lightfoot promised that as mayor she would “provide each school with basic educational support positions like librarians, nurses and social workers.” As the CTU demands she make good on this promise in contract negotiations, Lightfoot now says “there is no more money.”

Meanwhile, the city recently approved a $1.6 billion public subsidy to private developer Sterling Bay for a new commercial development in the wealthy Lincoln Park neighborhood and is also moving forward with plans to build a new $95 million police academy. The city also recently approved a $33 million plan to put more police officers in public schools.

“We need to ask those at the very top to pitch in a little more so that we can actually make the investments in every single child in this country,” Warren said at the rally.

Warren’s visit follows that of fellow Democratic presidential candidate Bernie Sanders, who came to Chicago last month to lead a solidarity rally with CTU members as they voted to authorize the strike. At that rally, Sanders said, “For the last 45 years there has been a war in this country by the corporate elite against the working class of our nation. The only way to win prosperity for working people is when we significantly increase membership in trade unions all across America.”

Several other Democratic contenders have shown solidarity with the CTU and SEIU Local 73, including Kamala HarrisJulián Castro, and Joe Biden. Cory Booker met with striking teachers last Friday.

So far, no 2020 candidate has publicly expressed support for Mayor Lightfoot in the labor dispute, while more Chicagoans approve of the strike than oppose it. Meanwhile, several of Chicago’s progressive politicians have sided with the unions, including the six democratic socialists on the City Council.

“CPS teachers and staff are giving their all out on the picket lines to fight for justice in our schools, so we have to give them our all in support,” said Alderwoman Rossana Rodriguez-Sanchez, a member of Chicago Democratic Socialists of America who was elected earlier this year.

Rodriguez-Sanchez and the city’s other socialist alderpeople have been working with Chicago DSA and Chicago Jobs with Justice to serve thousands of free meals to CPS students and strikers through “Bread for Ed,” a solidarity initiative that raised over $30,000 for food in one week.

“This strike is about winning public schools that serve Chicago students’ and parents’ needs, and a Chicago that’s for the working class—not the rich and powerful,” explained Will Bloom, Chicago DSA secretary.

“Everyone in America should support you in this strike,” Warren told the CTU and SEIU picketers. “You don’t just fight for yourselves, you fight for the children of this city and the children of this country.”

This article was originally published at In These Times on October 22, 2019. Reprinted with permission. 

About the Author: Jeff Schuhrke is a Working In These Times contributor based in Chicago. He has a Master’s in Labor Studies from UMass Amherst and is currently pursuing a Ph.D. in labor history at the University of Illinois at Chicago. He was a summer 2013 editorial intern at In These Times. Follow him on Twitter: @JeffSchuhrke.

Elizabeth Warren joins Chicago teachers on the picket line as negotiations stall

Wednesday, October 23rd, 2019

The Chicago teachers strike seemed to move further from resolution late Monday and teachers at the Passages charter school also went on strike, while the striking teachers got support from Sen. Elizabeth Warren, who joined them on the picket line on Tuesday. Monday night, Chicago Teachers Union President Jesse Sharkey sent out a statement saying that negotiations had stalled, seemingly on orders from Mayor Lori Lightfoot. Sharkey said that progress had been made to that point—in the first days of the strike, the teachers and the city had reached “tentative agreements on staffing to support homeless students, on staffing for Pre-Kindergarten classrooms and naps for those young students, on letting counselors work with children instead of random assignments like substitute teaching. We won an extension of the charter moratorium and support for programs to address the teacher shortage, especially among teachers of color.”

But on Monday that progress abruptly halted, Sharkey said: “After two days of striking, our bargaining team was beginning to see glimmers of progress on issues that matter to our members. Today, on day three, that progress stopped dead. It was clear from the mayor’s letter to the press demanding members go back to work without a contract and from the sudden atmosphere of stonewalling from the CPS team, that the mayor had pulled the plug on negotiations. The CPS team scheduled to negotiate with bus drivers in SEIU 73 spent exactly 12 minutes at the bargaining table. These vindictive actions have served to halt the real progress that the negotiating teams were making toward resolution of the contract.”

Lightfoot and Chicago Public Schools management put out a competing statement agreeing that bargaining had been going well but pointing a finger at the teachers for refusing to go back to work without a contract and at the union for pulling back from negotiations.

This article was originally published at Daily Kos on October 22, 2019. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor.

Elizabeth Warren's education plan tackles privatization, segregation, and high-stakes testing

Monday, October 21st, 2019

Sen. Elizabeth Warren has released a K-12 education plan and, like so many of her other policy plans, it fully earns the headline term “sweeping.” Also “bold” and even potentially “inspiring.” In recent weeks Warren has taken some shots from the left for her past education stances, and in response to this plan we’re now going to see who was seriously concerned about education policy and who was just trying to drag her down to benefit their candidate. There’s so much good stuff here—increased funding, fighting privatization, fighting segregation, breaking up the school-to-prison pipeline, civil rights enforcement, supporting teachers, eliminating high-stakes testing—with Warren’s characteristic understanding of the links between racial justice and economic justice and government enforcement and transparency and the influence of money in our institutions.

As with so many of her other plans, Warren takes a racial and economic justice approach to education, writing that “The data show that more school funding significantly improves student achievement, particularly for students from low-income backgrounds. Yet our current approach to school funding at the federal, state, and local level underfunds our schools and results in many students from low-income backgrounds receiving less funding than other students on a per-student basis” and highlighting the racial disparities that result from this system. She calls for quadrupling federal Title I funding to schools with high proportions of students from low-income families, while requiring states to invest in education in order to get that funding, and changing funding formulas to better reach low-income students. Warren would also boost federal funding under the Individuals with Disabilities Education Act, create “Excellence Grants” for public schools “to invest in programs and resources that they believe are most important to their students,” promote community schools, and invest in school buildings, which are all too often crumbling.

But while funding is a key part of promoting equality in education, it’s not the only thing, and Warren adds a strong set of civil rights proposals. Funding is important in fighting rising school and residential segregation, the plan notes: “Modern residential segregation is driven at least in part by income inequality and parents seeking out the best possible school districts for their children. By investing more money in our public schools – and helping ensure that every public school is a great one – my plan will address one of the key drivers of residential segregation.” Warren would also strengthen civil rights enforcement in education, including applying it to the recent trend of “breakaway” districts, in which the wealthier, whiter areas of a town break away to form their own school district, leaving lower-income and less white populations in underfunded schools. Warren commits to civil rights enforcement not just for students of color but for students with disabilities, LGBTQ+ students, and English Language Learners and other kids from immigrant families. She’d address some of the key policies making schools punitive and stressful for students, pushing back on zero-tolerance discipline policies that contribute to the school-to-prison pipeline, canceling school lunch debt and calling for free school breakfasts and lunches, and eliminating high-stakes testing, which has so damaged the educational experience: “Schools have eliminated critical courses that are not subject to federally mandated testing, like social studies and the arts. They can exclude students who don’t perform well on tests. Teachers feel pressured to teach to the test, rather than ensuring that students have a rich learning experience.”

In that call to eliminate high-stakes testing, which is also so much about allowing teachers to make judgments as professionals, and in the final two broad areas of Warren’s plan, she clearly take cues from the teachers’ uprising of recent years. Warren calls for higher pay for teachers, points out that her earlier plan to eliminate student debt would teaching a more sustainable profession, and supports unions as a path to strength for teachers. She also has a slate of plans to diversify the teaching workforce and to expand professional development for teachers—and she would make the government pay for those classroom supplies that teachers all too often pay for out of their own pockets.

Finally, “To keep our traditional public school systems strong, we must resist efforts to divert public funds out of traditional public schools.” She’s not kidding around there. Warren calls for a ban on for-profit charter schools, including ones that are theoretically non-profit but outsource operations to for-profit companies, and to end federal funding for the expansion of charter schools—a key Betsy DeVos priority. Beyond that, she would subject existing charter schools to the same oversight and transparency requirements as public schools, and crack down on rampant fraud. She’d apply lobbying restrictions and disclosure requirements to companies lobbying school systems that get federal money, “Ban the sharing, storing, and sale of student data,” and require high-stakes testing companies that currently sell prior versions of their tests to students who can afford them to release those materials to everyone.

In short, Warren once again does have a plan for that.

This article was originally published at Daily Kos on October 21, 2019. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor at Daily Kos editor since December 2006. Full-time staff since 2011, currently assistant managing editor.

The Powerful New Idea in Elizabeth Warren’s Labor Platform

Friday, October 4th, 2019

Image result for Shaun Richman

On Thursday, Elizabeth Warren released her long-awaited labor platform, titled “Empowering American Workers and Raising Wages.” The plan provides unions with a long wish list of badly needed reforms and new powers. It also makes a solid case that, like Bernie Sanders, she would be the labor movement’s biggest booster in the White House in generations.

Several other candidates, including Julián Castro, Beto O’Rourke and Amy Klobuchar, have also recently put out lengthy labor plans, which provide examples of how (and how not) to stand out from the pack when the baseline position of most Democrats in repealing the Taft-Hartley Act.

The biggest innovation in Warren’s platform is a private right of action in the federal courts against employers who violate the National Labor Relations Act.

Currently, only employers are able to take their complaints directly to the federal courts, against a union picket line, boycott action or other alleged violation of the 1947 Taft-Hartley Act. Warren would enable a union or an affected employee to sue an employer who commits an unfair labor practice (say, cutting a union activists’ hours, making threats or spying on secret union meetings) and seek injunctive relief—and even compensatory damages. Such a change would even the playing field in a significant way.

Warren is also proposing some activist anti-trust strategies to empower workers who are deemed to be independent contractors to better organize—and to shut down corporate mergers that will harm employees’ pay and work rules.

In the platform, Warren also reiterates her proposal for employee representation in corporate governance. A Warren administration would aim to make billion-dollar corporations set aside 40% of their executive board seats for employee representatives. While not new to her platform, it is a surprisingly radical idea that hasn’t received enough attention.

Like Sanders, Warren calls for a new federal framework for sectoral bargaining. The goal is to give unions the tools to equalize wages and benefits across multiple firms in an industry. Since individual employer-based collective bargaining is a huge part of the self-image of members and leaders alike of what unions do, both candidates are intentionally vague about the specifics of their proposals, and they are equally clear that unions will have a strong role in shaping the final legislation.

Still, the labor proposals from Warren and Sanders each signal their preferred approach.

I read Sanders platform as an embrace of wage boards, a throwback to an early New Deal model in which tripartite industrial boards voted on wage and working standards, and imposed them on all employers across an industry. As I’ve written previously, this is a framework that could put a union in every workplace in America, but, to be clear, it is not collective bargaining as we know it.

Warren’s proposal seems to be adding an overlapping representational structure to the NLRB process. Workers at individual workplaces might still vote for union representation at their firm only and negotiate collective bargaining agreements as we currently do. Meanwhile, certified unions could utilize some new process to certify a sectoral bargaining unit that would force employers to negotiate together over a specified scope of bargaining. This change would enhance union power (and unions may prefer it), but—even with card check and beefed-up NLRB enforcement—it would remain difficult for unions to dramatically expand their reach into many new workplaces.

The biggest disappointment of Warren’s labor plan is her studious avoidance of a just cause right to your job, as Sanders has proposed. A just cause law would put the onus on an employer to justify a termination. Just cause would give workers the power to say no to requests that fall outside the bounds of their duties or propriety, and it would give unions new tools in organizing and new modes of representation.

Instead, she proposes to amend the law in at least nine sections to outlaw non-compete and forced arbitration clauses and some of the most egregious forms of gender and wage discrimination. The fact that her platform contains a ridiculously long list of categories of workers whose protections against workplace discrimination belie the notion that universal protections are not essential.

Moreover, if a Warren administration successfully passes anti-discrimination protections for LGBTQ and pregnant workers, the law would still put the onus on the worker who suffered the discrimination to prove that their termination was for discriminatory reasons and not one of the many other excuses an employer will offer in defense.

In essence, this is the difference between the two most pro-labor candidates in the Democratic field. Elizabeth Warren approaches the issue of rights at work as a problem solver, and wants to enhance the institutional role of worker representation to restore a degree of macroeconomic balance. Bernie Sanders aims to radically alter the balance of power in the workplace.

Both platforms are excellent, and largely overlap on the remainder of reforms to the NLRA and other federal agencies that are supposed to protect workers from corporate exploitation, and both candidates can clearly be relied upon to prioritize workers’ rights issues once in office.

As for Castro, O’Rourke and Klobuchar, they also agree on an emerging consensus around fighting employee misclassification and overtime protection, raising the minimum wage and passing  the Protecting the Right to Organize (PRO) Act, which would essentially overturn the anti-union Taft-Hartley Act, add card check under some circumstances and impose meaningful financial penalties for employers who violate their employees’ rights

Castro makes a major issue out of granting union rights for farm and domestic workers—racist exclusions from the NLRA that cast a pall over the New Deal. Granted, almost every other candidate also supports this, but Castro stands out in terms of emphasis.

Klobuchar, on the other hand, is demonstrably going through the motions on workers’ rights. She endorses a long list of other people’s bills with no emphasis and nothing original. This shouldn’t come as a surprise from a politician who apparently thinks it’s funny to treat her own employees poorly. For readers who are worried that the candidates are just paying lip service to unions during the primaries but won’t follow through, Amy Klobuchar is what a Democrat who really doesn’t care about workers looks like. Compare and contrast with the others.

The biggest surprise is O’Rourke, who has one of the best labor platforms in the field. Like Pete Buttigieg, O’Rourke has clearly been taking advice from some of the smartest thinkers on how to restore union power, but unlike that other centrist from central casting Buttigieg, O’Rourke embraced some of the boldest solutions. Most interestingly, on the choice between wage boards and certified sectoral bargaining, O’Rourke’s team asks, “Why choose?” Under his formula, the wage boards would address big-ticket items across entire industries and take them out of competition, while the sectoral bargaining would empower unions to negotiate over the detailed minutia that workers also want to address in a contract.  O’Rourke’s plan would give unions multiple strategies to end the corporate race to the bottom over pay and working conditions.

The “Yes and…” Labor Platform

Warren’s proposal for a private right of action in ULP cases is the biggest new addition, and should remain on unions’ reform agenda no matter who wins the nomination. But it is not without controversy. The federal courts have historically been where the most damage to workers’ rights have been inflicted, and many union attorneys will be apprehensive about losing control of strategy over marginal cases that could produce bad case law. I would argue that we’ve been fighting this anyway (and not exactly producing a stellar track record of wins), so why not cut to the chase and fight for our rights in the courts? Why let a Republican NLRB add layers of obstruction?

Beto O’Rourke’s “yes and” approach to sectoral and industry-wide worker representation should also inspire us to think about the opportunities of a new president and Congress differently. Labor activists have tended to approach previous opportunities for reform as a narrow window to win one thing, and the arguments over which ‘one thing’ will save us have been paralyzing.

But the crisis of economic inequality and its corrosive effects on our democracy require a host of reforms, and even centrist Democrats get that. We need overlapping systems of worker power, union representation and employee protections. The labor movement has now been presented with a rich collection of reform proposals. We should say yes to all of them.

This article was originally published at In These times on October 4, 2019. Reprinted with permission. 

About the Author: Shaun Richman is an In These Times contributing writer and the Program Director of the Harry Van Arsdale Jr. Center for Labor Studies at SUNY Empire State College. His Twitter handle is @Ess_Dog.

Warren proposes sweeping plan for 'empowering American workers and raising wages'

Thursday, October 3rd, 2019

Sen. Elizabeth Warren has released her plan for empowering American workers and raising wages, and, like Sen. Bernie Sanders’ workplace democracy plan, there is a lot here—and the sheer scope of the changes Warren proposes again reminds us of how effective the corporate and Republican war on workers has been over the past few decades. In a country that treated workers right, there wouldn’t be this many big changes to propose.

Warren identifies five broad goals, under which she organizes dozens of specific proposals:

  • Extending labor rights to all workers
  • Strengthening organizing, collective bargaining, and the right to strike
  • Raising wages and protecting pensions
  • Increasing worker choice and control
  • Expanding worker protections, combating discrimination, and improving enforcement

Extending labor rights to all workers includes passing legislation to protect farm workers and domestic workers, who are left out of key current labor laws (because they were predominantly black workforces at the time those laws were passed); ending misclassification of workers as independent contractors, as California recently passed a law to do; defining companies like McDonald’s as joint employers of the workers in their franchise restaurants and in other ways broadening the joint employer standard; allowing graduate students and some people currently defined as supervisors to unionize; cracking down on exploitation of undocumented workers; and more.

Warren’s proposals for strengthening organizing, collective bargaining, and the right to strike include prohibiting state-level “right to work” laws; passing majority sign-up for union organizing and passing the Protecting the Right to Organize Act; cracking down on intimidation and interference by employers and by state and local officials; using antitrust laws to expand rights for gig economy workers; and expanding the National Labor Relations Board’s enforcement power. She’d protect workers’ right to strike by banning permanent replacement of strikers, protecting the right to engage in repeated short strikes (like the one-day strikes favored by Fight for $15), doing away with secondary boycott restrictions, and more.

Warren would also promote sectoral bargaining, in which workers in an industry can bargain across multiple employers. “Each individual firm may have a strong incentive to resist collective bargaining if it believes it will raise costs and put the firm in a worse position relative to its competitors,” her plan says. “But if every firm is bound by the same bargaining outcome, their relative standing remains. That creates conditions for a more successful bargaining process.”

A $15 minimum wage, including for tipped workers and workers with disabilities, is a big part of Warren’s plan to raise wages and protect pensions. But that’s not all. She would also reinstate the Obama administration plan to raise the threshold for overtime pay eligibility—the Trump administration rolled that plan back significantly while still claiming credit for having raised the overtime threshold above Bush-era levels—and, just as she pledges to use antitrust law to protect gig economy workers, she’d use federal authority to “reject mergers if they create labor market consolidation that will drive down wages.” She’d support apprenticeships and project labor agreements, key policies for the building trades, and she’d strengthen pensions. Warren also addresses a question that skeptics of Medicare for All often raise, noting that health care is often a sticking point in union contract negotiations—a sticking point that could be eliminated by Medicare for All—but pledging, “In both the transition to Medicare for All and its implementation, my administration will work closely with unions and multiemployer health insurance funds to protect the gains they have made and to draw on their experience providing quality health care to working people.”

But wait, that’s not all. In the name of increasing worker choice and control, Warren would require that “American companies with $1 billion or more in annual revenue must let employees elect no less than 40% of the company’s Board members.” She’d enable workers to move more freely between jobs by banning noncompete agreements and no-poaching clauses. She’d do away with forced arbitration and class action waivers. In the name of expanding workplace protections and combating discrimination, Warren would promote fair scheduling laws and stronger safety protections, push to knock down anti-LGBTQ discrimination in the workplace, prohibit policies that are technically race-neutral but really discriminatory, such as allowing employers to ban workers from having dreadlocks, and press for protections for disabled and pregnant workers. But all the good policies in the world don’t help workers if they’re not enforced, so Warren would also strengthen enforcement.

Like I said, it’s a lot. Much of what Warren proposes, of course, would need to be passed through Congress, which is yet another reason we need Democrats to retake the Senate. But significant chunks of it could also be done through executive action and using the federal contracting process to move some major employers.

This article was originally published at Daily Kos on October 3, 2019. Reprinted with permission.

About the Author: Laura Clawson is a Daily Kos contributor editor since December 2006. Full-time staff since 2011, currently assistant managing editor. Laura at Daily Kos

Elizabeth Warren heads to Essence Festival with plan to 'value the work of Black women'

Monday, July 8th, 2019

“The numbers tell the story,” Warren writes in Essence. “Black women are more likely to be breadwinners for their families and work more than almost any other set of women workers in America, including white women. Yet, Black women are paid less and they are less likely to be able to afford basic human rights like healthcare, childcare and housing.”

Because “This is no accident,” it will take intention and hard work to reverse. Warren’s plans for universal childcare, housing, and canceling student debt will help black and brown women, but she’s not stopping there. Warren pledges a series of executive actions to “boost wages for women of color and open up new pathways to the leadership positions they deserve.” That starts with a ban on new federal contracts for “Companies with a bad track record on equal pay and diversity in management.” Federal contractors will also be banned from “forcing employees to sign away their rights with forced arbitration clauses and non-compete agreements—restrictions that are particularly hurtful to women of color.”

Warren also pledges to “take executive action to make the senior ranks of the federal government look like America and strengthen enforcement against systemic discrimination.”

This is intersectional policy: Warren is clear about how her policies that aren’t tailored to black women will still help black women, but she’s also clear that systemic discrimination requires more. One-size-fits-all policy solutions won’t fix a system that’s been designed not just to elevate the wealthy but to crush some groups more than others.

This blog was originally published at Daily Kos on July 5, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

Labor Department tells senators it’s too ‘complex’ to collect sexual harassment data

Thursday, May 3rd, 2018

The Labor Department told Democratic senators that it can’t collect data on sexual harassment in the workplace because it would be “complex and costly.” On Monday, Democratic senators dismissed that justification.

In January, 22 Democratic senators sent a letter to labor department officials requesting the department act on studying sexual harassment. Sen. Kirsten Gillibrand (D-NY) signed the letter and Sens. Kamala Harris (D-CA) Elizabeth Warren (D-MA), Bernie Sanders (I-VT), and others co-signed the letter, according toBuzzFeed.

Referring to the #MeToo movement, the letter noted that “there has not been an exact accounting of the extent of this discrimination and the magnitude of its economic costs on the labor force. We therefore request your agencies work to collect this data.”

CNN was the first to obtain the Labor Department’s response, which was addressed to Gillibrand. The department’s letter read, “There are a number of steps involved in any new data collection, including consultation with experts, cognitive testing, data collection training, and test collection. Once test collection is successful, there is an extensive clearance process before data collection can begin.”

The department went on to say that employers would have difficulty providing the information they’re requesting and that requesting additional information for the Bureau of Labor Statistics survey “may have detrimental effects on survey response.”

The letter mentions “alternative sources of information on sexual harassment,” such as the Bureau of Justice Statistics’ National Crime Victimization Survey, but senators sent a letter in response that essentially balked at that recommendation.

“…the Department is surely aware that not all sexual harassment rises to the level of a violent criminal act and therefore would not be captured by this survey,” the letter read.

Senators called the justifications for declining to work on the issue “wholly inadequate” and wrote that since they “hope that the Department would always consider rigorous methods inherent in data collection,” the department’s mention of its complexity should not justify the decision to not study sexual harassment. Senators also mentioned that the U.S. Merit Systems Protection Board did this type of data collection and analysis in the ’80s and that “Surely the government’s capacity to collect this data has only become more sophisticated over the past several decades.”

Senators from both parties asked the labor secretary to take some kind of action on sexual harassment at an April Senate panel on the budget. According to Bloomberg, at the time, Labor Secretary Alexander Acosta “expressed willingness to act.”

Many researchers have looked at the economic cost to harassed women themselves. Heather McLaughlin, an assistant professor of sociology at Oklahoma State University, has studied the career effects of sexual harassment and found that a lot of the women who quit jobs because of sexual harassment changed careers and chose fields where they expected less harassment. But that meant that some of those fields were female-dominated, and many female-dominated fields pay less. Some women were more interested in working by themselves after the harassment.

” … but certainly they’re being shuffled into fields that are associated with lower pay because of the harassment,” McLaughlin told Marketplace.

People who have been harassed also experience effects on their physical and mental health, such as anxiety, depression, and post-traumatic stress disorder. Victims of sexual harassment can also experience headaches, muscle aches, and high blood pressure.

Fifty-four percent of U.S. women said they received inappropriate and unwanted sexual advances from men, with 23 percent saying those advances came from men who had influence over their careers and 30 percent coming from male co-workers, according to a 2017 ABC News/Washington Post poll.

“Right now, we don’t know how many gifted workers and innovators were unable to contribute to our country because they were forced to choose between working in a harassment-free workplace and their career,” Gillibrand wrote in her January letter to the department.

This article was originally published at ThinkProgress on May 2, 2018. Reprinted with permission.

About the Author: Casey Quinlan is a policy reporter at ThinkProgress covering economic policy and civil rights issues. Her work has been published in The Establishment, The Atlantic, The Crime Report, and City Limits.

Trump Administration Should Rescind Proposal That Allows Bosses to Pocket Working People's Tips

Thursday, February 15th, 2018

As we previously reported, President Donald Trump’s Labor Secretary Alexander Acosta announced a new proposed regulation to allow restaurant owners to pocket the tips of millions of tipped workers. This would result in an estimated $5.8 billion in lost wages for workers each year?wages that they rightfully earned.

And most of that would come from women’s pockets. Nearly 70% of tipped workers are women, and a majority of them work in the restaurant industry, which suffers from some of the highest rates of sexual harassment in the entire labor market. This rule would exacerbate sexual harassment because workers will now depend on the whims of owners to get their tips back.

In a letter to Congress, the AFL-CIO opposed the rule change in the strongest possible terms, calling for the proposal to be rescinded:

Just days before the comment period for this [Notice of Proposed Rulemaking] closed, an extremely disturbing report appeared indicating that analysis of the costs and benefits in fact occurred, but was discarded. On Feb. 1, 2018, Bloomberg/BNA reported that the Department of Labor “scrubbed an unfavorable internal analysis from a new tip pooling proposal, shielding the public from estimates that potentially billions of dollars in gratuities could be transferred from workers to their employer.” Assuming these reports are correct, the Department of Labor should immediately make the underlying data (and the analyses that the Department conducted) available to the public. We call on the Department of Labor to do so immediately and to withdraw the related Notice of Proposed Rulemaking.

The AFL-CIO strongly urges the Department to withdraw the proposed rule, and instead focus its energies on promoting policies that will improve economic security for people working in low-wage jobs and empower all working people with the resources they need to combat sexual harassment in their workplaces.

The Department of Labor must provide an estimate of its proposed rules’ economic impact. However, while suspiciously claiming that such an analysis was impossible, it turns out that this wasn’t true:

Senior department political officials—faced with a government analysis showing that workers could lose billions of dollars in tips as a result of the proposal—ordered staff to revise the data methodology to lessen the expected impact, several of the sources said. Although later calculations showed progressively reduced tip losses, Labor Secretary Alexander Acosta and his team are said to have still been uncomfortable with including the data in the proposal. The officials disagreed with assumptions in the analysis that employers would retain their employees’ gratuities, rather than redistribute the money to other hourly workers. They wound up receiving approval from the White House to publish a proposal Dec. 5 that removed the economic transfer data altogether, the sources said.

The move to drop the analysis means workers, businesses, advocacy groups and others who want to weigh in on the tip pool proposal will have to do so without seeing the government’s estimate first.

Democrats in Congress quickly responded that the rule change should be abandoned, as the new rule would authorize employers to engage in wage theft against their workers. Sen. Elizabeth Warren (D-Mass.) said:

You have been a proponent of more transparency and economic analysis in the rulemaking process. But if DOL hid a key economic analysis of this proposed rule—and if [Office of Management and Budget] officials were aware of and complicit in doing so—that would raise serious questions about the integrity of the rule itself, and about your role and the role of other OMB officials in the rulemaking.

Take action today and send a letter to Congress asking it to stop Trump’s tip theft rule.

This blog was originally published at AFL-CIO on February 15, 2018. Reprinted with permission. 

About the Author: Kenneth Quinnell is a long-time blogger, campaign staffer and political activist. Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.

Trump NLRB Appointee Behind Major Anti-Union Ruling Accused of Corruption

Thursday, January 25th, 2018

An anti-union policy decision from President Donald Trump’s National Labor Relations Board (NLRB) appointees appears to be tainted by a violation of ethics standards, and Sen. Elizabeth Warren (D-Mass.) is joining unions in demanding answers.

The Trump policy decision came on December 14 when the NLRB reversed an Obama-era ruling in the Browning-Ferris case—a pro-worker decision from 2015 that has been loudly decried by business lobbyists and conservative Republicans. The case turned on the issue of how the NLRB would define the term “joint employer” in union organizing cases—and was broadly viewed as a blow to McDonald’s and other fast food companies that exploit the franchise business model as a tool to help defeat unions. Last month, the five-member NLRB voted 3-2 in the Hy-Brand Industrial Contractors case to reverse Browning-Ferris, with recent Trump appointee William J. Emanuel providing the margin of victory for the anti-union forces.

Emanuel now stands accused by Warren and others of violating ethical standards by voting on the case even though he appears to have a conflict of interest. The conflict is said to arise from Emanuel’s former status as part owner (or “shareholder”) of the labor law firm Littler Mendelson, a business that specializes in representing employers against their own workers. The firm represented a party in Browning-Ferris, so standard government ethics rules indicate Emanuel should have recused himself from voting, according to critics.

“It looks really bad,” says Susan Garea, a California attorney representing Teamsters Local 350. Emanuel’s violation of ethics rules taints the NLRB vote, she tells In These Times, so the decision in Hy-Brand Industrial should be voided, and the validity of Browning-Ferris evaluated in an atmosphere free of conflicts of interest. Garea detailed her charges in a Jan. 4 court filing in the U.S. Court of Appeals for the District of Columbia Circuit. “It’s clear Emanuel should not participate,” in any vote on Browning-Ferris, she says

The Teamsters have been fighting the case for years. In 2013, Local 350 tried to organize workers at a recycling center in Milpitas, Calif., that was owned and operated by Browning-Ferris. But the union found itself blocked by a legal strategy that asserted the workers were actually employees of an outside staffing agency, Garea explains. The union fought the case before the NLRB, prevailed with the Board’s 2015 pro-union decision, and has been working ever since to fend off legal attempts to overturn the ruling. Garea, of the law firm Beeson, Tayer & Bodine, proclaims the case is far from over and the union is intent on blocking Emanuel’s improper action.

Warren entered the picture when Trump nominated Emanuel for the NLRB in mid 2017. She opposed him from the start, arguing that a lawyer who has represented only bosses in a 40-year-plus legal career was a bad choice for the NLRB, which is supposed to be a fair arbiter of labor disputes. She demanded a commitment from Emanuel to recuse himself from NLRB cases involving a long list of former clients (which he agreed to do) and voted against him in the final confirmation on the Senate floor.

“Emanuel is the opposite of what Senator Warren would like to see in an NLRB member. His conflicts of interest are a mile long, and he spent decades fighting against workers’ efforts to join together and stand up for themselves,” Warren’s Deputy Press Secretary Saloni Sharma tells In These Times.

The Senate floor vote on Emanuel reflected the deep party-line divide over Trump’s nominations to the NLRB. All the Democratic Party senators present voted against Emanuel, and all the Republicans voted for him. AFL-CIO chief lobbyist Bill Samuel tells In These Times that Trump’s appointments to government labor posts have been strongly anti-union, but Emanuel is one of the most extreme. “We didn’t make a fight about Emanuel. We just didn’t have the votes,” he says. “But we are very much behind Sen. Warren in her efforts to hold them [the NLRB members] accountable.”

In a letter dated Dec. 21, Warren posed questions to Emanuel raising concerns about potential misconduct in the Hy-Brand vote. “Given that your former partners at Littler Mendelson P.C. represented a party in [Browning-Ferris] before the board, did you recuse yourself from the board’s decision to move to remand the [Browning-Ferris] case from the U.S. Court of Appeals for the D.C. Circuit back to the board? If not, why not?” she writes. The letter, also signed by several other top Congressional Democrats, requests that Emanuel commit to additional recusals from pending NLRB cases in the future.

An unsigned email message stated that Emanuel “respectfully declines” a telephone interview to discuss the Warren allegations. Messages left directly with Emanuel were not returned.

Sen. Warren and other congressional Democrats are awaiting a formal response to the questions before deciding on the next step against Emanuel. Meanwhile, the White House is expected to announce it is nominating Washington, D.C., management-side attorney John Ring to fill an open seat on the five-member NLRB, as former Chairman Philip Miscimarra’s term on the Board expired just days after the Hy-Brand decision.

This article was originally published at In These Times on January 23, 2018. Reprinted with permission. 

About the Author: Bruce Vail is a Baltimore-based freelance writer with decades of experience covering labor and business stories for newspapers, magazines and new media. He was a reporter for Bloomberg BNA’s Daily Labor Report, covering collective bargaining issues in a wide range of industries, and a maritime industry reporter and editor for the Journal of Commerce, serving both in the newspaper’s New York City headquarters and in the Washington, D.C. bureau.

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