Temporary Employment Agency Workers are Organizing in Montreal

Conchita Poonin and her co-workers strike for a $15 starting salary. Thousands of Quebec nursing home workers have walked off the job in their first-ever series of coordinated strikes. Photo: Immigrant Workers Centre

Montreal   While in Quebec with the ACORN Canada head organizers, several of us stopped by to meet with our friends and partners at the Immigrant Workers’ Center in Montreal. We talked to Eric Shragge, president of the board, and longtime activist and academic as well as other long time staffers. In addition to the work and campaigns that they have been pushing consistently during the fifteen years since their founding, we caught up with several exciting and important new initiatives that are central in Center’s current focus and work, especially because it is critical to understand that the Immigrant Workers’ Center in Montreal is not a job training and placement or social service center, so common in the United States and even Canada, but is better understood as an organizing center for immigrant workers.

Most intriguing to me was the activity of the Temporary Agency Workers Association (TAWA). Many of the issues this association is targeting are the common complaints of most workers employed through such placement agencies, but foreign and immigrant workers are obviously even more vulnerable and precarious with fewer resources and protections on these jobs. It also goes without saying that many jobs they find working through the agencies are dangerous and low paying.

All of this resonated deeply with me, remembering that in 1971, as ACORN was expanding our work in Arkansas past housing project tenant issues and welfare rights issues, we started two additional, area-wide rights-based affiliated organizations, the Vietnam Veterans Organizing Committee and the Unemployed Workers Organizing Committee (UWOC). The central issue for the UWOC quickly became their lack of rights and exploitation by temporary employment agencies or buy-a-job shops, as we called them. We ended up winning some legislative reforms guaranteeing rights for temporary workers as well as better guarantees for employers picking up the fees and making some jobs permanent. Nevertheless in the way that labor has been squeezed and union strength has diminished over the last 45 years, the growth of non-contract, unprotected temporary work has ballooned making some companies the largest US private sector employers after Walmart, handling jobs at all skill positions.

In Quebec all fees are paid by the employers, but most of the rest of the issues are the same, except worse, as we learned from the Immigrant Workers’ Center. They had won a campaign recently with a group of workers from Mauritius who had been trapped in bad workplace conditions when immigration laws changed in Canada no longer guaranteeing permanent residence after four years of employment and won their residency despite the regulation.

The TAWA key demands are easy to support. They want a living wage for their work, and have joined the campaign for $15 per hour that has been a signature effort of the Immigrant Worker Center over the last several years. They want to shut down the fly-by-night operators, which are little more than labor contractors involved in bait-and-switch exploitation of workers. Importantly, they want to win some co-employer guarantees between the contracting employer and the agency hiring the workers to prevent the efforts to bypass provincial labor standards.

We need to follow the work of TAWA and the IWC in Montreal. They could break a new path for precarious and informally employed workers that all of us should follow.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Many Lessons from the Dutch Election

Dutch Freedom Party leader (Partij Voor De Vrijheid, PVV) Geert Wilders (L) holds a banner reading “Get out! This is our land” during a protest in front of the Turkish embassy at The Hague on March 8, 2017. (EMMANUEL DUNAND/AFP/Getty)

Montreal   As I tried to make my way through the snowageddon between the US and Canada, I kept trying to get updates on the election results in the Netherlands. In some ways my interest was less about the populist hoopla revolving around the party-of-one for Wilders, the Trumpish anti-immigrant, hate spewing rightwing candidate, than the fate of the other parties on the list. Waking up, the headlines heralded that the right-center party and the current prime minister had out polled Wilders, but there were many, perhaps more important stories hidden beneath those headlines.

My interest was more than casual. I had visited the Netherlands for several weeks in the fall discussing strategies around a campaign to restore national health insurance in the country and advising on various field, phone, and GOTV programs with the Socialist Party of the Netherlands, so I was very interested in how my friends and colleagues there had fared against the populist surge. The short answer, somewhat reassuring in these troubled times, though perhaps disappointing when compared to our hopes, was that they essentially held their own. Where they had 15 seats in the Parliament or 10% of the total, they polled enough to hold onto 14 seats. The Prime Minister’s party, while outpolling Wilders, still lost 8 seats or 20% of its total, while he added a third more seats or 5 to his total. There are 28 or so different parties in the Netherlands vying for their share of the national vote to apportion out accordingly the 150 total seats between each party, making it all something of a multi-party mess when it comes to governing.

The real loser was the center-left Labor Party, which was decimated in the election falling from the number two party with 38 seats to the Prime Minister’s party with 41 seats, in this election to only 9 seats, losing more than three-quarters of their seats. And, why? Because they had agreed to help form the governing coalition, and their members saw it as a sellout as the center-right governing party pushed more conservative programs and policies. The lesson for many parties was clear. Not only would they not be willing to join a government with Wilders and the populist rightwing, but they might also be committing political suicide by following Labor’s move and being whipsawed on program.

The SP/N base may not have grown, but the work and campaigns held country-strong for the most part giving them clear paths to build their future. The math seems to indicate that seventeen of Labor’s number might have gone to the Green Left Party which went up ten seats from four to fourteen, now tying SP/N, and the centrist party, Democrats 66, which went from twelve seats to nineteen. This is obviously a very fluid situation as parties try to construct a permanent home to house their new seats and to attract the almost dozen seats Labor lost that dissipated among parties both right and left.

The overriding problem might be how does Netherlands govern with so many fractions? The Prime Minister’s party won in some ways by going right to block Wilders, but that’s not a governing strategy, and that may leave it harder pressed to find a coalition with constructive values and policies that can construct a vision. Meanwhile the center and left parties have the opportunity to construct an alternate program and vision, and the SP/N’s work on healthcare reform may be a template worth modeling in the Netherlands and elsewhere, but it’s likely going to be an unsettling time for a while before bridges can be built towards the future.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The Long Tail of Payback on Harvard’s Investment in Coal Fired Electricity Production

Students from Harvard University’s Philip Brooks House at the ACORN Farm

New Orleans   What goes around, comes around, even if forty-five years later. Hearing that food activists from Harvard University’s Philip Brooks House were interested in volunteering in New Orleans, triggered an immediate invitation from ACORN International for them to visit and help at the ACORN Farm in the Lower 9th Ward. Seven showed up on a cool morning to weed, mow, and help in any way possible, having only arrived the night before, barely escaping the heralded snow-ageddon northeaster hitting their area.

But, before work began, the circle had to be closed with additional thanks for the help of Philip Brooks House years ago when ACORN embarked on our first campaign to gain national attention. Middle South Utilities, now Entergy, the parent of Arkansas Power & Light had announced that it wanted to build the world’s largest coal-fired plant at White Bluff near the town of Redfield on the Arkansas River between Little Rock and Pine Bluff. The coal was going to come from the Fort Union deposit under the Powder River Basin in Wyoming, parts of Montana, and North Dakota. Their proposal to move the coal to the plant was to build a slurry line where water from the arid west would flush the coal all the way down to Arkansas.

ACORN had been fighting both gas and electric utilities over exorbitant rate increases and saw the plant as driving rates even higher, so on that score our members were already agitated. Quick research found that there increasing reports, particularly from Europe, on the adverse impact of sulfur pollution, especially on agriculture. ACORN dispatched an organizer to put together groups of farmers and others on both sides of the river, who were worried about diminishing crop yields, while the company was claiming it would lower their costs. There were actions a plenty in Arkansas to try and stop the plant, and I joined our farmers on a company-paid private plane flight to Kentucky to see the TVA’s Paradise plant, which we blew up in their faces with reports of pollution warnings caused by the plant.

All of that moved the needle forward, but the major paper at the time, The Arkansas Gazette, still saw ACORN and our efforts as rag-tag. As a public company, ACORN was able to determine its major investors were the pride of the Ivy League, with Harvard first and Princeton and Yale right behind. We reached out for an organizer we knew in the area, and he started making contacts at Harvard, launching a petition, getting students to join us in demanding the Board of Harvard join us in opposing the plant unless there were scrubbers to stop the pollution and other modifications. The Harvard Crimson did a piece by Nicholas Lemann, from New Orleans, and now with The New Yorker and other posts, all of which triggered the Gazette to run ACORN’s campaign on the front page for the first time in our young history.

We eventually won a good deal of that campaign when the company had to cut the size of the plant in half, drop the slurry line, also opposed by our allies in the Northern Plains Resource Council, and made pollution adjustments. Where did we get the most support at Harvard: the Philip Brooks House, where I also spoke and did recruitment, but that’s another story.

We thanked the Harvard students again as they worked with us in a different way, and gave them an ACORN flag from our Latin American affiliates to bring home to hang in the House, reviving the tale, and closing the circle once again.

PS. The researcher was Steve Kest, the organizer was John Beam, and the campus organizer was Bill Kitchen!

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Vision Property Management: Exploiting Lower Income Home Buyers as a Business Model

New Orleans   In writing about Vision Property Management, the predatory and unscrupulous rent-to-own real estate company, reporters for The New York Times obviously struggled for a way to describe where to place Vision and other bottom-fishing realty companies that exploit lower income and working families’ hopes of home ownership. They ended up just talking a walk and euphemistically referring to these operations as operating in “this corner of the housing market.” If it’s a corner, it’s a very dark and nasty place.

Vision, based in Columbia, South Carolina, owns more than 6000 houses, many of them purchased at rock bottom prices from the foreclosure inventory dumped on the market “as is” by the quasi-governmental housing finance giants Fannie Mae and Freddie Mac. The Times described their modus operandi succinctly:

Vision markets its homes on a website, with most of the transactions taking place either over the phone or by email. Sometimes the photos of the properties are several years old and do not reflect what they actually look like.

You’re wondering how that would not run afoul of truth-in-advertising laws aren’t you? I thought the same thing, but to the degree that state and federal laws do not seem adequate to regulate operations like Vision, this dark corner of the real estate market, whether called contract-for-deed, rent-to-own, lease purchase, or whatever, is based on transactions where the “looks” of the place may be the least of the problem. No inspections, no appraisals, and agreements based on condition “as is,” make it easy to hide problems as severe as lead poisoning and roof leaks in Baltimore, lack of water, heat and good sewage in Arkansas, and unaddressed code violations and thousands of dollars in fines in Cincinnati, all of which reporters were able to document from disgruntled and exploited wannabe home buyers. Even a recent photo on the Vision website would not have revealed the horrors that awaited these families – and thousands of others.

As we’ve noted over recent months, contract for deed land purchases, like a bad weed, have grown in the credit desert since the Great Recession for lower income families still hoping to own their own homes. In the wake of these horrible stories of exploitation, some states are finally looking to tighten up regulations. A bill in Illinois is progressing that would give buyers some additional rights, especially once they have paid more than 10% of principal and interest. A bill proposed in Maryland had less luck, as the real estate industry muscled up to prevent reform even in the wake of lead paint poisoning in some of the homes, arguing that over worked and undermanned city inspection teams needed to do better. The Uniform Law Commission is evaluating whether to draft model legislation on contract for deed purchasers in the wake of all of this shame and scandal, but that will also take years.

Exploited home buyers shouldn’t have to crouch in this dark corner of the market waiting for relief. Signing light on the problems is valuable, but this is a situation that cries for action, since the words aren’t working.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

The IRS Enables the Return of Refund Anticipation Loans

New Orleans   Refund anticipation loans or RALs, as they were known, were one of the most predatory products on the market in their heyday targeted solely to low-and-moderate income workers who were most desperate for their tax returns. They were on the other side of the digital divide so less likely to file with the IRS electronically. The money was theirs, and tax preparers, especially the big boys of the market, H&R Block, Jackson & Hewitt, and Liberty Tax Services all exploited this desperation.

This was a 21st century national campaign for ACORN, and we forced the first negotiations with H&R Block after 330 actions in a 6 week time period during the height of the tax season, and eventually ended up with agreements with all three of the companies to wind down RALs. Disclosures of the interest rates were part all of the agreements, but it didn’t really matter since even if it said the interest rate on the loan to get their money one week earlier than the IRS would deliver it would cost them 349%, displayed in a poster or on the computer screen, if you have to have the money to pay rent or buy groceries or fix the car and you have to have it right now, disclosures, no matter how predatory don’t matter. Eventually we got HSBC to withdraw as the primary lender to the companies for RALs for what they termed, “reputational reasons” because the loans were so exploitative. Finally, the IRS and eventually other government agencies jumped in and also condemned RALs, and they finally faded from the market.

Now, thanks to the IRS, they are back, and there is even less doubt about the potential victims now. In 2017, the IRS decided to deliberately delay refunds until February for any taxpayer that claimed the earned-income tax credit or the child tax credit. These credits are only available to lower income workers. Presidents from Clinton to Bush to Obama have argued that EITC is the best and largest “anti-poverty program in the United States.”

On their website the IRS claimed they were concerned about an “error rate” of between 20 and 27% for filers in order to justify these delays. Something is fishy here. This is the IRS. The error rate should be an exact number based on information they have at hand on how many corrected filings they required, so giving a fudged number raises questions in my mind. Furthermore, their advice is to preparers who enable incorrect filings, which the IRS concedes are largely based on the complexity and confusion involved in the EITC program. Why was the pain not pushed to the preparers, rather than the families filing who were delayed unreasonably in receiving their returns? Oh, and meanwhile the number of audits of higher income filers is in the dumps now!

The preparers saw an opportunity and seized it by offering RALs again. Admittedly, these were no-interest loans this time offered against the amount of the return, and they had loan limits depending on the company’s policies. The big boys report over 1.5 million RALs are reported already this tax season with a month to go. Block did 840,000, Liberty175,000, and Jackson Hewitt 485,000. For the preparers, this is just the cost of customer acquisition, since it is cheese in the trap to catch low-income workers who would be forced to fork over the preparation cost to get their refunds.

No matter how much sugar you put in the coffee, this is once again the IRS partnering with private preparers to expand their businesses. The only real question is how long it will be before RALs are back in full and terrible force again?

The only good news in this tawdry story is that overall filings are down so far this year, so some people at least have decided to wait all of the vultures out.

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Just When You Think It Can’t Get Worse, It Just Gets More Bizarre

New Orleans   We’re living in bizarre times without easy explanations, making it hard not to start drawing straight lines in our mind about things that might normally have seemed simply examples of random events, but the examples abound.

The legislature is meeting currently in Arkansas for instance. News reports indicated that there was a difficulty in the conservative Republican legislature in passing an “open carry” law for college campuses in the state similar to what exists in Texas. They worked it out a compromise by passing the “open carry” for colleges but also adding that “open carry” would be extended to bars and other venues. Yikes!

They had a similar problem when some of them wanted to make the Bible the state book. A number of them thought that was a grand idea, but a couple of wet blankets among the thumping crowd thought it might demean the Bible and be sacrilegious. More seriously, I listened to a lot of discussion about a bill that kept failing and being pulled back up until it passed that essentially said that any time a school district closed a school for any reason a charter school operator would have first dibs on taking the school over. Since Little Rock schools were pretty arbitrarily taken over by the state, many of the opponents of the takeover see the state legislature’s action as just another backdoor move to force charter schools into the district to make the Waltons happy.

But, before anyone gets the big head, looking at state legislatures in many of the Republican controlled states is clear evidence that Arkansas is neither the first, nor the last, in this kind of weird world. Federal courts had to strike down a Louisiana legislative act that tried to bar nude dancing in strip clubs in that famously wide open state for young women between 18 and 20, because it not only abridged their free speech as determined in the past by the US Supreme Court, but there was also no way the judge could find any evidence that the bill was really about sex trafficking despite the legislatures cover story.

Seems a bit like Muslim Ban 1.0 and now Muslim Ban 2.0. It really isn’t enough to protect you from the US Constitution and the rights it offers against discrimination because of religion or national origin, to insert a sentence or two in the new ban that says, hey, this isn’t discrimination. Judges and lawyers may have been born at night, just not last night.

Meanwhile as Russian knocks on the door of the centennial anniversary of the Russian Revolution in 1917 in a surprise Prime Minister Putin has put the kibosh on any kind of big celebration of what any would acknowledge as one of the seminal events of world history in the 20th century. According to spokespeople in Russia, the government is of two minds. On one hand Putin doesn’t want to remind anyone that revolution might be a good idea, because in his view that would be a very bad idea. And, on the other hand there are many others in the country who see the end of the Soviet era, according to a spokesperson, as being “like Brexit,” the vote in the United Kingdom to leave the European Union. You can’t make this stuff up!

Ok, all this is random, but so bizarrely connected that it’s enough to prevent anything like clear thinking on any given morning. That’s my excuse anyway. I wonder what theirs might be.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
Powered by WP Tutor.io