Harold Meyerson

Part-Time America

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Of the 963,000 jobs created in the past six months, according to the Bureau of Labor Statistics’ (BLS) Household Surveys, 936,000 of them are part-time. That doesn’t mean that just 27,000 of the people hired on to new jobs got full-time work. The total for part-time jobs includes both newly created jobs and formerly full-time gigs that were cut-back to part-time, and the BLS doesn’t pose the questions that would enable it to quantify these two kinds of new part-time jobs. But factoring in both kinds, we do know that the net number of full-time jobs in America has risen by just 27,000 since the end of January. One reason that the number of full-time jobs is so abysmally low is Obamacare’s employee mandate, which stipulated that employers with 50 or more workers either had to provide all such workers who put in at least 30 hours a week with health insurance, or pay a penalty that would help defray the government’s costs for providing subsidized benefits. The administration announced...

Strikes, Alliances, and Survival

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Fast-food workers in seven cities are set to walk off their jobs today in one-day actions, escalating what is quickly becoming a nationwide effort to win pay hikes in one of America’s premier poverty-wage industries. Backed by the Service Employees International Union (SEIU), the campaign is succeeding in publicizing the plight of low-wage workers in a growing number of states and cities. How it goes about actually winning higher wages, however, remains unclear. For its part, the AFL-CIO is preparing for its biennial convention this September, at which it will begin to hammer out some kind of formal affiliation or partnership with other, nonunion progressive organizations such as the NAACP and the Sierra Club. There are changes afoot within the union’s Working America affiliate—a Federation-run and –funded neighborhood canvass that has expanded from a purely (and brilliantly successful) electoral operation, building support for progressive Democrats among white working-class swing-...

Subsidizing Poverty

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Want to know the problem with enterprise zones? Then check out Sunday’s Riverside Press Enterprise , one of the best midsized newspapers in California. A story in it covers Governor Jerry Brown’s successful campaign to have the legislature put enterprise zones out of their misery. (Brown recently signed the bill abolishing the zones.) Conceived by the late Jack Kemp and other unusually well-meaning right-wingers to bring jobs to the inner-city, enterprise zones have provided subsidies to businesses for creating jobs they might have created in any case. Disproportionately, the jobs created were low-paying. Also at Brown’s prompting, the legislature replaced enterprise zones with a better-targeted subsidy. Under the new law, businesses in high-unemployment and high-poverty areas will be eligible for tax credits that come to 35 percent of a new hire’s wages—provided those wages are between $12 and $35 an hour. This drew a wondrous complain from Colin Strong, the head of the San...

What Tom Friedman Doesn’t Understand About the Economy, Part 72

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“Average is over,” New York Times columnist Tom Friedman likes to proclaim, and in at least one particular, he’s right. Friedman no longer writes average columns. With each passing week, his efforts become steadily more moronic. His latest , in Sunday’s paper, is entitled “Welcome to the Sharing Economy,” and in it, Friedman mistakes economic marginality and desperation for innovation and opportunity. The subject of this particular essay is Airbnb, a website where travelers go to rent bedrooms in other people’s homes. “There’s an innkeeper residing in all of us!” Friedman effuses, as he recounts how Airbnb may have as many as 200,000 people per night this summer plopping down in some stranger’s kid’s bedroom. Enthralled by the sheer techno-innovation of it all, Friedman doesn’t pause to ponder just what would impel a parent to turn over junior’s room for a few bucks. Could it be that the factory closed? That Wal-Mart pays so little? No matter: “Ordinary people can now be micro-...

The Great Detroit Betrayal

AP Photo/Paul Sancya
AP Photo/Duane Burleson D etroit has filed for bankruptcy. Most of the spot-news coverage has focused on the immediate fiscal crisis of the city, but the immediate fiscal crisis really isn’t what got the city into such deep trouble. Certainly, Detroit’s contracts with its employees and its debts to its retirees don’t explain anything about how and why this once-great city has come to such grief. Those contracts and retirement benefits are par for the course for major American cities—certainly, no more generous than those in cities of comparable size. Any remotely accurate autopsy of the city will find the cancer that killed Detroit was the decline of the American auto industry. The failure of U.S. automakers in the '70s, '80s and '90s to make better cars at a time when foreign-made autos were beginning to enter the U.S. market was surely one factor. Another was the trade deals that made it easy for Detroit automakers to relocate to cheaper climes—most particularly, NAFTA, which...

All Hail Harry Reid!

AP Images/J. Scott Applewhite
The United States Senate and the nation it so imperfectly represents both had a good day today, thanks to something that’s been in short order around here lately: A Democrat who knows how to play hardball. By threatening Republicans with ending their right to filibuster presidential executive-brand nominees, Majority Leader Harry Reid ensured that President Obama’s appointments to departments and agencies that Republicans don’t much like would nonetheless be approved. It’s important to note that the Republicans’ real objections have been less to the individual nominees and more to the bodies they were supposed to lead: The Department of Labor, the Environmental Protection Agency, the National Labor Relations Board, and the Consumer Financial Protection Bureau. Workers, consumers and the environment rate a big “Feh” from Republicans, but unable to muster the votes to put their respective bureaus out of business, the GOP has used their power to filibuster to cripple them. Harry Reid...

Ending Minority Rule

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The first test vote that Senate Majority Leader Harry Reid is scheduled to bring before the Senate this morning is that of Richard Cordray, President Obama’s pick to head the Consumer Financial Protection Bureau. Reid decided to lead off with Cordray for a very good reason: The Republicans’ insistence on filibustering him makes clear their real intent is to throttle the Bureau. They are using a filibuster of an appointment to effectively repeal legislation they don’t otherwise have the votes to repeal. Nothing could better make Reid’s case that the filibuster has been twisted into a vehicle for minority rule. Republicans have openly acknowledged that their opposition to Cordray isn’t to Cordray himself. Rather, they say, they oppose giving the bureau’s director the power to direct the bureau. Instead, they’d like a bipartisan board to run the bureau. Their reasoning is straightforward: A single director might just advocate for consumers. If there were a bipartisan board, however, it...

The State of the Unions

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Gallup and Pew concur: Just over one-half of Americans approve of labor unions. In late June, the Pew Research Center released the results of its biennial poll on unions and corporations , and reported that 51 percent of Americans had a favorable view of unions—up from just 41 percent in 2011, the last time Pew popped the question. Pew’s new number is almost identical to Gallup’s, which found that 52 percent of Americans approved of unions when it last asked that question in August of 2012. Gallup polls on union approval every year and has reported a 52 percent approval rating each of the past three years. Before then, union approval had hit an all-time low for Gallup surveys, with just 48 percent in 2009. So unions are modestly, sorta, kinda back, in the public’s estimation. Back, that is, from the trough into which they fell during the first year of the recession, when their approval ratings toppled from the high-50s (Gallup) and the mid-50s (Pew) by ten points in each poll. The...

The Part-Timer Problem

The Obama Administration’s decision to delay for a year the penalty that employers (in firms of 50 or more employees) must pay if they don’t provide health insurance to their workers shines a light on a problem that may be even more profound than getting health coverage for every American: that is, the decline of the American job. The employer mandate was designed for an economy in which American workers were employed in what had been normal jobs. In firms of 50 or more, all workers who put in at least 30 hours a week were either to receive coverage from the firm or else the firm would have to pay the government a $2,000 yearly penalty. Problem is, fewer and fewer workers are putting in 30 hours a week. To begin with, labor-force participation is at its lowest level since women increased their work-force participation in the 1970s. It has declined even during the past four years of so-called recovery. The past four years have also seen a rise in the percentage of workers who are part-...

A Good Day For Hotel Workers

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UNITE HERE, the union of U.S. and Canadian hotel workers, and the Hyatt chain announced a wide-reaching agreement on Monday afternoon that will give Hyatt employees in currently non-union hotels across the nation the right to choose a union without having to face management opposition. In return, UNITE HERE announced it is lifting its global boycott of Hyatt hotels. The agreement will go into effect when new union contracts for current members are ratified by UNITE HERE locals in San Francisco, Los Angeles, Chicago, and Honolulu. The terms of those contracts were also agreed to in today’s settlement. Over the past quarter-century, UNITE HERE has significantly raised living standards for its members in cities where most major hotels have union contracts. In New York, San Francisco and Las Vegas, hotel workers make more than $20-an-hour with employer-provided health benefit plans that have won national acclaim. The union is also known for its innovative contracts: In Las Vegas, the...

Chris Christie's Unnecessary Special

Another red-letter day in the annals of Republican fiscal prudence. New Jersey Governor Chris Christie announced this afternoon that he has scheduled the special election to pick a succeessor for the late Senator Frank Lautenberg for October 16—despite the fact that the regular election for New Jersey state government, very much including the governor’s job, for which Christie is seeking re-election, will be held on November 5th . The cost of holding a special election, rather than consolidating it with the regular election three weeks later, has been estimated by the state’s office of legislative services at $24 million. But holding the special early means that Democrats won’t be mounting a huge get-out-the-vote drive for Lautenberg’s likely successor, Newark Mayor Cory Booker, during the election in which Republican Christie appears on the ballot. “I don’t dawdle,” Christie said in announcing his decision. And, he hardly needed to add, he doesn’t do anything that might jeopardize...

The Ugly Side of D.C.'s Corporate Bipartisanship

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AP Images/Ashraful Alam Tito Over the past month, an oceanic divide has opened between European and American retailers on the question of how to respond to the manmade epidemic of deadly disasters in the garment industry of Bangladesh, the world’s second largest clothing exporter. In the aftermath of the Rana Plaza fire on April 24, which killed at least 1,127 workers, a group of roughly 40 European retailers—including H&M, Carrefour, Bennetton, Tesco, and Marks & Spencer— signed on to a plan binding them to fund both a regimen of independent factory inspections and the improvements required to make those factories safe. But only three U.S.-based fashion companies and retailers —Abercrombie & Fitch, PVH (which includes the Calvin Klein, Tommy Hilfiger, and Izod labels), and Sean John (Sean Combs’s company)—have become party to the compact, despite the repeated urgings of anti-sweatshop and workers' rights organizations. Wal-Mart, Gap, Target, Sears, JCPenney, and other...

The New New Haven

Jesse Lenz
Major Ruth became a civic leader because he made a promise to his neighbor, Brian Wingate. Both had moved to the Beaver Hills section of New Haven, Connecticut, in 2003. A neighborhood of aging single--family homes that had seen better days, Beaver Hills had been targeted by the city for a housing--rehabilitation program, and, with the zeal of new arrivals, Ruth, a manager at the local utility company, and Wingate, a custodian and union steward at nearby Yale University, sought to involve themselves in neighborhood--improvement ventures. That proved harder than they had anticipated. Although New Haven aldermanic districts are tiny, encompassing no more than 4,300 residents, Ruth and Wingate couldn’t find anyone who could identify, much less locate, their alderman. “We joked that one of us would run for alderman and the other would have to run his campaign,” Ruth says. In 2010, Wingate told Ruth he was running and a deal was a deal. “It started out as a simple promise,” Ruth says, “but...

Dimon Forever

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The main item of business before JP Morgan Chase’s annual shareholder meeting, which will convene today in Tampa, is whether JPM CEO Jamie Dimon will be stripped of his additional post as chairman of JPM’s board of directors. A range of institutional investors concerned about the over-concentration of power atop the nation’s most powerful institutions, and upset by the $6 billion loss JPM took last year at its London trading desk, won roughly 40 percent shareholder support last year to separate the two positions. This year, they hope to do better, even though the bank’s public-relations offensive on Dimon’s behalf has made the prospect of winning a majority more difficult. Dimon —the closest thing America has to a celebrity banker— was the one major financier whose reputation came through unscathed in the 2008 financial meltdown. JPM had steered clear of the worst of the mortgage market, and had managed its risks well enough so that, alone among the nation’s leading banks, it was...

A Devil of a Problem for Labor in the City of Angels

AP Photo/Reed Saxon
AP Photo,File T omorrow, Angelenos go to the polls to select a new mayor. Well, some Angelenos—actually, not a hell of a lot. Indeed, turnout is projected to be so low that the winner may get fewer votes than Fletcher Bowron did in winning the election of 1938 , when Los Angeles was less than half as populous as it is today. The reason for the low turnout is straightforward: Not all that much differentiates the two candidates. Both City Controller Wendy Greuel and Hollywood-area City Councilman Eric Garcetti are mainstream Democrats. Unlike the election, say, of 1993, which pitted Republican businessman Richard Riordan against liberal Democratic Councilman Mike Woo—two candidates with widely divergent views on how to fix the L.A. police in the wake of the Rodney King riots—no great issues separate the two candidates this year. Unlike the election of 2005, in which former California Assembly Speaker Antonio Villaraigosa ousted incumbent Mayor Jim Hahn, this year’s election won’t be a...

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