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The NAACP’s Sterling Gaffe

Peter Dreier

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From the L.A. NAACP’s website.

In an excruciating example of bad timing, the Los Angeles chapter of the NAACP was scheduled to bestow its Lifetime Achievement Award to Donald Sterling, owner of the Los Angeles Clippers basketball team, at its May 15 banquet. Sterling is now under fire for racist comments caught on a recording that surfaced on the TMZ website. Even President Barack Obama weighed in, condemning Sterling’s remarks as “incredibly offensive.” The NBA is now investigating Sterling’s remarks and could invoke sanctions, including removing him as Clippers’ owner.

Embarrassed by the controversy, the NAACP announced Sunday morning, via Twitter, that is was withdrawing the award, which was to be presented at the Millennium Biltmore Hotel in Los Angeles as part of the celebration of the chapter’s 100th anniversary. The NAACP also plans to honor Rev. Al Sharpton and Los Angeles Mayor Eric Garcetti — as well as Walmart’s local charity and political operative and a top Fed Ex executive — at the gala event.

Of course, when the NAACP decided to honor Sterling, it could not have predicted that the billionaire would the center of a controversy about his racist remarks. The entire news media has been focusing on Sterling’s angry comments to his girlfriend, who apparently taped their April 9 phone conversation in which the Clippers owner admonished her for posting photos of her with black people, including Magic Johnson, the former L.A. Lakers star and now L.A. Dodgers co-owner. “It bothers me a lot that you want to broadcast that you’re associating with black people. Do you have to?” Sterling allegedly said. He also told her: “You can sleep with them. You can bring them in. You can do whatever you want. The little I ask you is not to promote it on that… and not to bring them to my games.”

Yes, there’s no way that the NAACP could have known that Sterling would be caught making those comments. But there’s also no way that the NAACP could not have known that Sterling has a long history of racist comments and racial discrimination in his rental properties.

Indeed, the NAACP seems to suffer from amnesia. Almost exactly five years ago, a similar controversy arose when the civil rights group honored Sterling with the same award! At the time, Elgin Baylor, who served as the Clippers general manager from 1986 to 2008, had just filed an age and racial discrimination suit against Sterling. According to Baylor, Sterling had a “Southern plantation” view, preferring to field a team of “poor black boys from the South… playing for a white coach.”

Despite the controversy, the NAACP proceeded to give Sterling its award, even though the billionaire’s track record of housing discrimination against African Americans, compounded by the brouhaha with Baylor, was already well-known. To justify the 2009 award, the president of the Los Angeles branch told the Los Angeles Times that Sterling “has a unique history of giving to the children of L.A.,” revealing that the owner donates anywhere from 2,000 to 3,000 tickets a game to youth groups for nearly every Clippers home game.” (Of course, Sterling may simply have wanted to fill the many empty seats at the woeful Clippers’ home games).

The NAACP had already given Sterling its Presidents Award in 2008, according to Sterling’s website, which is primarily devoted to a long list of the many honors bestowed on him by various charitable groups to which he’s contributed.

Many nonprofit groups rely on charitable donations from wealthy donors and corporations. Often their philanthropy is altruistic and heartfelt, but sometimes their gifts are self-serving, designed to help a company or a billionaire cleanse a soiled reputation or peddle influence with politicians. Many donors expect to see their names on buildings or to be rewarded with public celebrations of their philanthropy, including receiving awards. The NAACP-Sterling relationship raises the larger question of whether nonprofit organizations should have any standards for bestowing honors on their donors. When is a donor such a disreputable person (or corporation) that its donation — and the strings attached to it — soils the reputation and moral standing of the nonprofit group, despite its many good deeds?

In the early 1900s, John D. Rockefeller began his philanthropic foundation to try to divert public attention from his reputation as a vicious robber baron, particularly after his private army killed striking workers, women and children at the Ludlow Massacre in Colorado. In the 1970s, Tufts University bestowed an honorary degree on Philippines First Lady Imelda Marcos — for “humanitarianism” no less! — in exchange for a multi-million grant from the Marcos Foundation to the university’s Fletcher School of Law and Diplomacy, at a time when her husband, the Filipino dictator Ferdinand Marcos, was being chastised by human rights groups.

Indeed, many corporate tycoons and other disreputable folks engage in philanthropy, attaching all kinds of strings to their giving, hoping it will wash away their sins. They operate under the adage, it is better to give and receive.

So it should be no surprise that Donald Sterling has likes to throw money around to nonprofit charities. What’s troubling is why an organization like the NAACP, dedicated to eliminating racial injustice, should help Sterling whitewash his reputation.

Sterling, who turned 80 on Saturday, is one of the largest property owners and landlords in the Los Angeles area. He owns and manages about 119 apartment buildings with some 5,000 units, according to the U.S. Justice Department, which has sued him for discrimination.

In 2006, the Justice Department sued Sterling and his wife for excluding black tenants and favoring Korean tenants in some of their properties. According to the Los Angeles Times, Justice Department lawyers presented evidence that Sterling and his wife made statements “indicating that African Americans and Hispanics were not desirable tenants and that they preferred Korean tenants” occupy buildings they owned in Koreatown. Three years later, the Justice Department and Sterling reached a settlement. Sterling agreed to pay a record $2.7 million. It was, at the time, the largest settlement ever obtained by the U.S. Justice Department in a housing discrimination case involving rental apartments.

Sterling, in fact, has a long history of landlord misdeeds. In 2008, the L.A. Weekly summarized some of the most egregious examples of Sterling’s grotesque greed:

2001: City of Santa Monica sued him, claiming he harassed eight tenants in three rent-controlled buildings by threatening to evict them for having potted plants on balconies. He paid $25,000 in settlements.

2002: Sterling sued apparent lover Alexandra Castro for the title to a $1 million Beverly Hills home. Castro said the dwelling was a gift from him to her. The case was settled for undisclosed terms.

2003: Legal Aid Foundation of Los Angeles represented a tenant Sterling tried to evict on Lincoln Boulevard for allegedly tearing down notices in an elevator. Sterling won. The tenant was evicted.

2004: Sterling and other landlords won a major appellate case against Santa Monica’s stringent Tenant Harassment Ordinance, which Santa Monica’s city attorney had used to order Sterling and other landlords to stop issuing eviction notices, terming the notices “harassment.”

2004: Elisheba Sabi, an elderly widow represented by Los Angeles Legal Aid Foundation, sued Sterling for refusing her Section 8 voucher to rent an apartment.

2005: Sterling sued landowner Larry Taylor for allegedly reneging on an unsigned note that agreed to sell Sterling properties worth about $17 million. The “handwritten note” war made it to the California Supreme Court. Taylor won last year.

2005: Sterling settled a housing-discrimination lawsuit filed by the Housing Rights Center, which represented more than a dozen tenants. He paid nearly $5 million in legal fees and a probably much larger, but undisclosed, sum to plaintiffs.[/box]

In 2006, Sterling paid for a newspaper ad announcing that the Donald T. Sterling Charitable Foundation would develop a “state-of-the-art $50 million dollar” project for “over 91,000 homeless people” in L.A.’s Skid Row neighborhood. The ad included a photo of a smiling Sterling above the quote: “Please don’t forget the children. They need our help.” At the time, many homeless advocates criticized the plan for being more like a mega-warehouse than a social service agency. But they need not have worried. Although Sterling spent millions of dollars to buy properties in the area, he never carried through on the homeless project. And now that the Skid Row neighborhood has gentrified — pushing many low-income people out of the area, Sterling is sitting on valuable property.

In addition to this track record of civil rights and tenants’ rights violations, as well as blatant indifference to human suffering, Sterling has a shameful reputation as a man who abuses his employees, acknowledges paying for sex with prostitutes and has had a string of girlfriends who live in expensive homes and drive luxury cars paid for by the real estate mogul.

Given his reputation and this history, why would the Los Angeles NAACP honor Sterling for “lifetime achievement?” The answer? For the same reason that the NAACP is scheduled to honor Javier Angulo, Walmart’s director of community affairs, at the same May 15 banquet. Sterling and Walmart are both NAACP benefactors and the civil rights organization has been happy to take these corporation donations.

Anyone who has read the Los Angeles Times over the past decade has seen the hundreds of full-page and half-page ads that Sterling puts in the paper to promote his philanthropic endeavors. A self-congratulatory photo of Sterling inevitably adorns these advertisements, along with photos of the heads of dozens of nonprofit groups in the Los Angeles area who receive Sterling’s largesse. Many of these organizations, in turn, bestow awards on Sterling for his humanitarian gestures. This I’ll-scratch-your-back-you-scratch-my-back philanthropy is hardly unusual in America, but Sterling’s blatant self-promotion, designed to cleanse his reputation and burnish his ego, should win an award of its own. In this way, the NAACP is simply another cog in the Sterling PR machine.

The NAACP has an even more incestuous relationship with Walmart, the world’s largest private employer and the world’s most controversial corporation. The Arkansas-based Walmart has a long history of law-breaking, not only in retaliation for employee activism but also in exploiting immigrants, paying women less than men for the same jobs, breaking environmental laws and bribing Mexican officials, among many other infractions.

The U.S. Department of Labor ordered Walmart to pay $4.8 million in back pay and fines to thousands of employees who were illegally denied overtime. It was also ordered to pay nearly $34 million in back pay to 87,000 employees. Last November, Walmart’s 1.3 million U.S. workers won a big victory when the National Labor Relations Board ruled that the retail giant had broken the law by firing and harassing employees who spoke out — and in some cases went on strike — to protest the company’s poverty pay and abusive labor practices. Clergy, labor, and community groups have complained that Walmart pays many of its employees poverty-level wages, insists that many employees work part time, and provides few employees with affordable health insurance. The company’s low-paid employees are forced to apply, with direct assistance from Walmart, for publicly funded benefits like food stamps and Medicaid. A report released by the National Employment Law Project uncovered widespread abuse of low-paid temporary laborers who work in warehouses and transport goods to Walmart’s stores.

Human rights groups criticize Walmart for its use of sweatshop labor, in China and elsewhere, to manufacture the clothing and toys it sells. Walmart has recently earned well-deserved negative publicity for its complicity in thwarting safety improvements at Bangladesh sweatshops that make clothes sold in Walmart stores. One of them was the eight-story Rana Plaza factory building near Bangladesh’s capital, Dhaka, where in April 2013 at least 1,100 workers were killed after the building collapsed — the deadliest garment industry disaster in history.

Walmart is also the largest seller of shotguns and ammunition in the country. For years it was a member and large contributor to the American Legislative Exchange Council, a conservative business lobby group that aggressively supported “Stand Your Ground” laws, the “shoot first” law that was implicated in the death of Trayvon Martin, among others. Walmart executive Janet Scott was the co-chair of an ALEC committee that encouraged state legislators to enact these controversial pro-gun laws.

To overcome its terrible reputation, Walmart and its corporate foundation has invested heavily in strategic donations. This influence-peddling strategy includes giving campaign contributions to politicians, hiring well-connected lobbyists to do its bidding, mounting expensive PR and ballot campaigns to win public support, supporting conservative think tanks and lobby organizations such as the Cato Institute, the Heritage Foundation and the American Legislative Exchange Council and buying the support (or at least neutrality) of nonprofit organizations through philanthropy.

The NAACP has been on the receiving end of Walmart’s corporate philanthropy. Across the country, the NAACP has partnered with Walmart on a variety of fronts. Columnist Earl Ofari Hutchison observed that Walmart’s public relations and philanthropic effort “is part of a well-greased, on-going national PR and ad campaign by Walmart to make dependable allies of black consumers and leaders.”

For more than a decade, Walmart’s single-minded goal has been to open more stores and generate more revenue–especially in urban areas, the company’s next frontier. But it hasn’t been easy. In many cities across the country, local environmental, consumer, labor, small business, religious, women’s rights, and other groups have fought against Walmart’s efforts to expand its low-wage business model.

Nowhere has the battle over Walmart been as intense as in the Los Angeles area. Eager to gain a foothold in the area a decade ago, Walmart proposed building a mega-store in Inglewood, a mostly African-American and Hispanic working-class suburb. In 2004 the company spent about $1 million to mount a ballot initiative that would change the city’s zoning laws to allow Walmart to build its supercenter. Despite being outspent ten-to-one, a local community coalition defeated the ballot measure by a two-to-one margin. That same year, the Los Angeles City Council enacted a big-box law making it difficult for Walmart to open new stores.

Walmart temporarily retreated, but in 2011 it returned to greater Los Angeles with a vengeance, attempting to open a store in the city’s Chinatown neighborhood. It hired three powerful lobbying firms to help the company get the approvals it needed. And it hired the politically connected Javier Angulo–former employee at the Mexican American Legal Defense and Educational Fund and the National Association of Latino Elected and Appointed Officials–to coordinate its local philanthropic program. Under Angulo’s guidance, Walmart donated millions of dollars to dozens of local nonprofits, including the NAACP, the Urban League, Homeboy Industries, California Charter Schools Association, Los Angeles Parents Union, Goodwill, Catholic Charities, Salvation Army, Union Rescue Mission, Meals on Wheels, Chrysalis, Children’s Hospital, and the Mexican American Opportunity Foundation, as well as several Asian American organizations, including Little Tokyo Service Center, Korean American Coalition, the Center for Asian Americans United for Self-Empowerment, and Chinatown Service Center.

Angulo made sure that whenever Walmart hands over a check to one of these groups, elected officials are there for the photo-op.

Walmart also sought to open a store in Altadena, a heavily African American suburb a few miles from Los Angeles. There, too, under Angulo’s supervision, Walmart donated to the Altadena NAACP as well as other African American organizations. Angulo also led the effort to win community support for the proposed store. The strategy paid off. Despite considerable opposition, especially from locally-owned businesses, many of Altadena’s African American leaders embraced Walmart’s plans. The new store opened in March 2013.

And in yet another display of either bad taste or blatant hypocrisy, the L.A. NAACP is giving its President Award to Shannon Brown, senior vice president of Fed Ex. Fed Ex is well-known as a union-busting company. Indeed, the Leadership Conference, a major civil rights coalition of which the NAACP is a member, issued a 2007 report entitled “Fed Up with FedEx: How FedEx Ground Tramples Workers Rights and Civil Rights,” about the company’s history of anti-union practices.

In 1903, the great historian and sociologist W.E.B. DuBois wrote The Souls of Black Folk, now considered a classic critique of American racism and its impact on Black Americans, and three years later he was a founder of the NAACP. No doubt Du Bois would be turning in his grave if he knew that the NAACP – with its glorious history of civil rights activism – had sold its soul to Donald Sterling, Walmart, and Fed Ex.

 

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Labor & Economy

What the NLRB’s About-Face on McDonald’s Means for Franchise Workers

While the National Labor Relations Board is currently divided 2-2, the confirmation of another Trump appointee will restore the Republican majority — which is bad news for fast-food-chain workers.

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Charles Davis

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Illustration by Define Urban

With Donald Trump’s election, the momentum at the NLRB is now with employers.


Workers at McDonald’s joined the union-backed Fight for $15 campaign because many found that they could not get by on minimum wage without the help of family and public assistance. But joining that campaign spurred retaliation, with dozens of employees alleging that they lost money or their job for organizing to get better pay.

Enter the U.S. National Labor Relations Board.

In a victory for workers, the board decided the McDonald’s Corporation was jointly responsible for punitive actions against employees across the country because the company dictates, among other things, how those employees cook and clean. That 2015 decision, in a case called Browning-Ferris, established a broad definition of “joint employer.” It made franchisors potentially liable for the actions of individual franchises, citing the “indirect” control they exercised over employees and their workplaces. And it meant fast-food chains, among others, would have to collectively bargain with employees who joined a union.

Donald Trump was elected president the next year. By December 2017, the NLRB was back on the side of business with respect to who is and who is not a joint employer, the board overturning with a 3-2 vote the “indirect control” standard of Browning-Ferris.

Then a Republican member of the board retired, evenly dividing the NLRB along partisan lines. The board’s inspector general then issued a report in February 2018 saying the December decision never should have been made — that, in particular, a Trump appointee should have recused himself due to a conflict of interest. The decision was thrown out, with congressional Democrats, such as Massachusetts Senator Elizabeth Warren, calling for hearings.

By that point, however, the NLRB had already ordered its lawyers to retreat in the most visible battle over the “indirect” joint-employer standard.

When an administrative trial began back in 2016, the NLRB had said McDonald’s was jointly responsible for alleged labor violations at its franchises, including reduced hours, surveillance and wrongful termination of employees who had been organizing for better pay.

“If McDonald’s is involved in determining working conditions at its franchised operations, it is responsible for what happens to workers subject to those conditions,” NLRB lawyer Jamie Rucker said at the time.

But the NLRB sought and won a 60-day suspension of that trial earlier this year. Lawyers representing the Fight for $15 movement and its allies say the NLRB is now rushing through a proposed settlement that would see McDonald’s get off without a finding of joint liability — which won’t make it any easier for low-wage workers to collectively bargain.

“What I see is an attack on workers’ ability to form a union,” said attorney Marni von Wilpert of the progressive Economic Policy Institute (EPI). “If you were able to find a joint-employment relationship with the corporate [franchisor], then all of a sudden they all have one big employer, and all the employees can go to corporate McDonald’s. That’s really what it’s all about, whether workers can organize.”

Under the proposed settlement, McDonald’s admits no wrongdoing, but its franchisees agree to cover back pay for workers fired as a result of their organizing.

The NLRB “is proposing a sham settlement,” said Mary Joyce Carlson, a lawyer representing Fight for $15. “McDonald’s directed a wave of retaliation that stretched from coast to coast and included illegally harassing, surveilling and firing workers in the Fight for $15. The hardworking cooks and cashiers who were organizing to get off of food stamps and out of poverty deserve a ruling in their case, not a settlement hammered out at the last minute in collusion with the Trump administration.”

With Trump’s election, the momentum at the NLRB is now with employers. Any setbacks would appear to be temporary: while divided 2-2 for now, the confirmation of another Trump appointee will restore the Republican majority. Once that happens, the NLRB can be expected to seek another opportunity to overturn the Browning-Ferris joint employer standard.

While Browning-Ferris did not explicitly pertain to the franchise model, it clearly spooked those who depend on it — and inspired those who think franchisors like McDonald’s should be liable for the mistreatment of employees at locations bearing its name.

Fight for $15 has prioritized organizing at fast-food businesses, but forming unions is extremely difficult when a dozen small restaurants with the same name may have a dozen different owners. There are over 14,000 McDonald’s restaurants in the United States, with only one in 10 owned by the corporation. The ability to collectively bargain with McDonald’s, the corporate franchisor, would make a union’s task easier — and help address the sort of labor violations that regulators routinely find at fast-food franchises. An EPI report says unionized workers are half as likely to be victims of wage theft, for example.

At an April 5 hearing, Fight for $15 attorney Kathy Krieger urged NLRB Administrative Law Judge Lauren Esposito to reject the settlement. Krieger argued that McDonald’s had conspired with its franchises to thwart worker organizing, the corporation recommending, she said, that franchisees “restrict crew members from taking their meals or their rest breaks outside the crew room” as a means “to prevent concerted activity.”

McDonald’s attorney Willis Goldsmith said the company would never accept a settlement identifying it as a joint employer. “The franchisees, they’re independent business people,” he said. “They did whatever they did, and if they are willing to concede that, they’re going to have to pay people. It’s not our job.”

While it appears the NLRB under Trump will ultimately reimpose the stricter, pre-Browning-Ferris standard that a joint employer must have direct rather than indirect control of workers, industry groups aren’t taking any chances.

Jenna Weisbord, a communications manager at the International Franchise Association to which McDonald’s belongs, said her group is looking to Congress to pass the “Save Local Business Act,” which would legislatively reimpose the pre-Browning-Ferris standard. “We understand the Senate will take on this task later this year,” she said of the bill, which passed the House last year.

A television ad campaign sponsored last year by the franchise association and the U.S. Chamber of Commerce argues the measure would restore “balance to labor law” in the face of a “runaway government agency.” That agency, in the era of Trump, is increasingly tilting in the favor of business.


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New Study: Early Exit from Short-term Homelessness Prevents Worse Scenarios

Escape Routes: Meta-Analysis of Homelessness in L.A., produced by the Los Angeles Economic Rountable think tank, finds that homelessness results from a cascade of system-wide failures, requiring a broad range of responses. Early intervention is key to all solutions.

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Golden State Green Rush

Golden State Green Rush: A Trimmigrant’s Tale

Trimmers make from $100 to $300 for a day that can run 15 hours. The bad gigs are the grows where weapons are numerous and the bosses are stressed out and high.

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Donnell Alexander

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Photo: Pandora Young

What’s to become of trimmers, the untold thousands of minimally skilled laborers who haunt the new cannabis horizon, is one of this industry’s most compelling issues.


 

Matilda reclines on a Northeast Los Angeles couch she’s paid $25 to sleep on for one night. The young woman, who earlier in the day had returned to the U.S. from Mexico, talks about her job as a cannabis trimmer. Matilda—not her real name—gives a heads-up on her epilepsy, and through the night she’ll make a number of unusual, loud sounds in her sleep.

Matilda has worked most in Mendocino on trimming jobs good and bad. At most black-market marijuana grow operations, she’s found there are guns. She grew used to the constant, noisy whirr of the high-powered generator that powered the lights growing the plants. The bad gigs are the grows where weapons are numerous and the bosses are stressed out and high.

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She left one trimming gig where the volume of open gunplay made her uncomfortable, and moved to another one in the Emerald Triangle–– Northern California‘s Mendocino, Humboldt and Trinity counties –– that featured consistent pay. The farm’s generator operated at lower decibels and the guns were out of sight. Sweet gig. Except for the bathroom, which sat a good 30 yards from the house. Every midnight tinkle run was an adventure.

“You shouldn’t have to worry about bears on the way to the bathroom,” Matilda said.

Briefly, about five years ago, I trimmed for room and board in Oakland and Marin County. My top boss was a retired Russian circus clown who tooled about the Bay Area with a briefcase full of many thousands of dollars and, of course, a heater. While riding with — let’s call him Yuri — it became clear the industry could not function without trimmers, who are generally unseen and often as high as the strain they’re cutting will let them get. What’s to become of these untold thousands of minimally skilled laborers who haunt this new cannabis horizon is one of the industry’s most compelling issues.

The adult-use and medical marijuana markets may collectively think pot magically goes from a plant in the soil to that jarred nugget in your local dispensary display case. But that eye-catching product was prepared by a worker who’s been at the mercy of their employers. Unlike growers, whose value derives from the training and practice necessary to grow pot on a large scale, trimmers are often regarded as disposable. Almost any stoner—or even nonstoner—can do their job. The profile of this work will only become more visible as adult-use marijuana goes mainstream.

A sizable subset of trimmers like Matilda are called “trimmigrants” due to the nomadic nature of their seasonal outdoor labor. Word of workers like Matilda coming together to improve their working conditions has begun getting out, however uncertainly. Matilda herself was unaware of any such movement; however, trimmers are indeed getting organized in a movement that’s as undeniable as it is necessary.


Trimmers are taken less seriously than growers and testers because their labor is viewed as an easily scalable craft that can be completed while thoroughly baked.


California labor law requires that any cannabis licensees with 20 or more employees be prohibited from operating in the state without a labor peace agreement between the business and a union representing cannabis workers. With the peace agreements in place, labor organizers can then recruit workers to join their union without interference from the employer. If the workers join, union negotiators will seek basic workplace protections: freedom from sexual or other harassment, regular pay schedules, incremental wages, just-cause termination and consistent, scheduled breaks.

Down the road, labor contracts hope to include health insurance and other benefits for the folks who trim California’s cannabis, as has happened with the unionized licensees since 2010. Union negotiators want to make sure protections now in place become industry-wide standards, and that all jobs (including trimming) allow a living wage and mobility.

United Food and Commercial Workers (UFCW) Local 770 consultant Robert Chlala said that by organizing trimmers, “My hope —and what we are seeing in our work already—is that we can avoid trimmers being treated as contingent workers or falsely labeled as independent contractors, that they can get the same protections as other workers.” (Disclosure: UFCW is a financial supporter of this website.)

Along with the Teamsters, the UFCW has greeted California’s adult-use cannabis-legalization era with a spate of organizing among trimmers. “From what I have also seen, it’s rarely just one-off,” Chlala said. “Trimmigrants do this work, but many also work in other aspects of the industry, from cultivators to retailers.”


Trimmers have little recourse to being asked to work topless or perform fellatio to receive earnings.


Trimmers are taken less seriously than growers and testers, and even bud tenders and deliverers, because their labor is viewed as an easily scalable craft that can be completed while thoroughly baked.

Before pot ends up in the hands of a distributor and, in the legal marketplace, a lab tester, it is cultivated. After cannabis “colas”–– the flowering site of a female cannabis plant––are grown, dried, and cured, it’s the trimmers’ responsibility to manicure the plant. Leaves, which contain less tetrahydrocannabinol or THC, are cut away, leaving only the cola’s bud. Bad trimming can be aesthetically unpleasant and a waste of time and product. Great trimmers are a business asset.

Their pay can range from $100 to $300 a day. Some in the off-the-books grows, as mentioned earlier, trim as barter. Work days can run as long as 15 hours. The work is inherently repetitive and often done while high and listening to music and, increasingly, podcasts.

Work conditions can be as varied as the strains of cannabis cultivated in the state. The Center for Investigative Reporting’s Reveal reported in 2016 that sexual assaults on female trimmers are frequent and woefully undercounted. Because of the vagabond nature of these workers—many are college students on break and travelers from Europe—there’s little recourse to being asked to work topless or perform fellatio to receive earnings.

However, there’s no single way to summarize the trimmer experience, according to Hezekiah Allen, executive director of the California Growers Association. “A licensed grow and a trespass grow on wilderness land are two different experiences, and the needs are very different,” said Allen. “California’s a very, very diverse marketplace, with a lot of different practices, from best to worst. And it’s very important to avoid generalizations.”


The arrival of industrial-sized pot farms raises concerns that worker treatment will more resemble that found in big agriculture than the kind seen in traditional mom-and-pop pot growing.


Criminal grows are most likely where openly stored guns are found, Allen told me. Small farms that employ family and friends are more the norm, and firearms are not out in the open. These farms, particularly in the Emerald Triangle, are grappling with the California industry’s volatile changes—new regulations and massive companies—and the demands of finding a path to legal status. Allen compares the concerns of these workers to Detroit just before President Obama’s auto company bailout. Simply maintaining jobs is the primary on-site issue.

Big marijuana businesses such as the Oakland-headquartered behemoth Harborside Farms and the average pot cultivator are incorporating these changes differently. Harborside Farms came factory style to ag iconic Salinas, bringing a 360,000-square-foot grow with it. The typical grow is smaller than 5,000 square feet. Flower greenhouses have been largely replaced by cannabis farms. Land costs have skyrocketed as other cannabis operations have streamed into Monterey County. The Harborside Farms effect has raised concerns that worker treatment will more resemble that found in big agriculture than the kind seen in the county’s previous mom-and-pop pot growing.

“That workforce is a lot more interchangeable with the traditional ag workforce,” Allen said, noting that he’s unfamiliar with the specifics of Harborside’s business practices. “You run into a lot of traditional issues. You run into the same safety and wage issues that you do with criminal grows, oddly enough.

“Big industrial ag is pretty well known for human rights abuses, the same sort of human rights abuses that cannabis workers are used to seeing on those criminal grows.”

At the opposite end from the skeletally policed Emerald Triangle, in a small Los Angeles warehouse, two trimmers luxuriate in just how satisfying the craft can be. While classic rock plays from an old-school radio, Francisco, 44, lovingly prepares a nugget to go out into the world. The cola has just come from the curing room. He and his partner that day were waiting for their boss at the door, eager to work.

“Every time I trim one I’m like… ahh,” he says, clipping at a bud while explaining. “You just make it look the way you like it. Trim it until the little red hairs are showing, until you can see all of the really good crystals. I really enjoy looking at it.”

The two sampled the cannabis and explained to their bosses how the product was working. Two thumbs up. It’s a much more satisfying job than Francisco’s previous work as a landscaper. The closest thing there is to a labor of love that he would do for free.

Yet, the trimmer’s work needs protection and recognition, noted Chlala, who’s also President of Latinos for Cannabis. Southern California, with its vertically integrated cannabis companies—where grows are owned by the same people who sell and move green product—is likely to lead the way in trimmer organizing around the state. Santa Barbara has seen an influx of big pot businesses and is likely to be a big target for unions.

The organized shops could not come soon enough for a workforce too often on the lookout for bears and regarded as an industry stereotype.

“While trimmers are often treated like they do one discrete task,” Chlala said, “their work is key to the production chain for cannabis—no different from any agricultural process like harvesting tomatoes or processing cut flowers or almonds.”


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Golden State Green Rush

Golden State Green Rush: A Grower’s Story

Co-published by Fast Company
Bryant Mitchell drove the 450 miles between Los Angeles and Guerneville twice a week, learning, among other facets of horticulture, how distillation practices could be applied to making marijuana concentrates. In time he would become a master grower.

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Donnell Alexander

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Photo: Pandora Young

“This is not something people welcome a lot of blacks into. We’re the guy who’s selling it. That’s all we are, and that’s the way they look at us.”


 

Co-published by Fast Company

A slim hall leads into a dark room where one enters the soul of the Blaqstar Farms cannabis grow, an 85-light operation rooted in East Los Angeles. On the other side of this warehouse where the lighting is standard luminosity, a couple of cool brown cats in their forties trim a strain called Birthday Cake and fill bags with the fluffy, freshly coiffed green nuggets. But it’s in this dark room where Blaqstar begins. Its owner Bryant Mitchell, 40, shows the soul of his business, a clutch of genetics — prime cannabis plants for breeding.

Dah-nale,” Mitchell says in his Texas drawl, “all these plants here come from those plants back there.” He points to some weed that’s ready to join the cool brown guys at the breakdown table. The plants, he says, “come from buddies, from respect, from people trying to see if I could grow their old stuff.”

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If the cannabis equity movement in America is to ever be more than just Green Rush theater —an inconsequential sideshow to the emerging multibillion-dollar legal marijuana industry — it’s going to need a lot of anomalies like Mitchell. Black people didn’t get our 40 acres and a mule after the Civil War, and we’ve yet to gain the trust and money to be brought into the cannabis industry at a foundational level. In a world where black celebrities endorse cannabis brands that people of their racial heritage don’t own, Mitchell is the rare black grower operating at the 85-light level and in the light of adult-use legal scrutiny. Necessity brought Mitchell from dispensary owner to grower after he hired someone who couldn’t repeat what he’d previously cultivated. In only a few years, Blaqstar has earned the endorsement of the popular rap act Migos and the admiration of cannabis equity supporters.

This grower is not blind to the turnabout he represents.

“This is not something people welcome a lot of blacks into,” says Mitchell. “We’re the guy who’s selling it. That’s all we are, and that’s the way they look at us.”


The enabling real estate, money and cannabis have not come together for the hundreds of aspiring legitimate cannabis entrepreneurs presently struggling to get in.


Who is this cash-rich black dude whose eyes shine with intelligence? He’s not a rapper or actor or a man who plays with a ball. Bryant Mitchell is a master marijuana grower. Cross the street from his warehouse for a cup of coffee — where his neighbors “know, but they don’t know” — and the joy that folks show from just seeing him is apparent. They won’t let him be, and it’s not just because of the pot.

Sit down with Mitchell over that coffee and see him let loose a single tear while running through the list of family and friends he’s lost to the war on drugs. That lone tear tells a story with dimensions the nation’s only beginning to comprehend.

Mitchell comes from sales, but in a first-class sense. The son of a cop, he’s taken operations and strategy as the basis of his training. After graduating from historically black Prairie View A&M University, just outside of Houston, he received an MBA from the University of Chicago. Mitchell flew around America pointing out to corporate executives whom to fire, telling his clients the time while using their own expensive wristwatches to do so.While he was in the Bay Area in his twenties and consulting for Chevron, Mitchell complained to a colleague that travel aggravated his sciatica, and the colleague introduced cannabis to his world. Not long after, Mitchell began buying and growing for himself, both in California and at his home in Houston. His oil industry consulting after the 2010 Deepwater Horizon spill brought the trove of money that allowed Mitchell to buy and invest in cannabis so heavily. In a sense, that Birthday Cake in East L.A. comes from hours billed to British Petroleum, a kind of bonus treat.


Women Abuv Ground CEO: “Most underground growers don’t want to come out. It took me years to find a lot of black growers.”


He bought a medical marijuana dispensary in the San Fernando Valley called Valley High. It was a smash hit, but Valley High was raided at the end of 2013. Mitchell says he lost $250,000.

But he had $400,000 banked, he says, part earned from consulting, part earned from his dabbling in the marijuana market. He’d put another $400,000 into building an indoor grow. But Mitchell’s cultivator was proving unable to repeat the dope work he had done for Valley High.

“Here’s my chance to do it,” he said. “I don’t know how to grow at this volume. As a consultant, one thing you learn is how to learn. I’ve got to learn fast as I can, and I can’t learn from my grower because he doesn’t know how to grow.”

Mitchell resigned from his day job and decided to go all-in on cultivating cannabis, big time. Then he headed to Sonoma County and Guerneville, California, 75 miles north of San Francisco.

Most Californians couldn’t find Guerneville on a map. Mitchell drove the 450 miles between Los Angeles and Guerneville twice a week. He started off watering outdoor plants on a partner’s 78-acre property. He also volunteered at Sonoma County wineries, learning, among other facets of horticulture, how distillation practices could be applied to making marijuana concentrates. In Sonoma County the newbie Mitchell unearthed the goods to become a master grower.


After Bryant did a second harvest, this MBA learned that he still needed to learn.


“I’d go out with the guys and would be like, ‘Hey, I’m gonna help,’” he says. “They’d say, ‘Come on in.’ No roadblocks. I’d be out for a week and would be one of the best trimmers. Never told ‘em I was growing.

“I wanted to see the plant from start to finish.”

Back at the East L.A. indoor grow, the first post-Guerneville harvest came in. The first large-scale weed came out larfy — immature and lacking in structural density.

“You ever cook eggs?” he says. “Easiest thing in the world, right? Ya throw ‘em in the pan, you get ‘em out. But cook eggs for 200 people, it’s a lot more complicated — even though it’s not that complicated. You’re not going to be consistent.”

He did a second harvest. The pot came out better. But then the thing that sets this MBA apart kicked in yet again. He learned that he still needed to learn.

“I’m doing these damn [harvests] every six months,” he says. “I gotta change that shit. Why does everybody do it that way? It’s a project. So why don’t I make every room a project —stagger it, and make sure I can deal with cash flow issues. It was out of necessity, but when I staggered it, guess what? My learning curve turned over so much quicker.”

It’s a characteristically African-American approach, turning necessity into productivity. Improvisational like basketball, if not as innovative as jazz.

“Bryant represents what we want to see in the culture, someone who’s compliant and doing business the right way,” said Bonita Money, CEO of Women Abuv Ground, a networking organization assisting people of color enter the cannabis industry. “Most underground growers don’t want to come out. It took me years to find a lot of black growers.”

Compliance has come because Mitchell’s money is cleaner than most. His techniques are organic, so his marijuana is also compliant. He says that living in the warehouse with his product nudged him toward clean growing; if spraying chemicals made him sick, the stuff could not in the end be good for customers, he surmised. Most black-market growers don’t know what he knows.

The legion of small-time pot farmers knows nothing of Guerneville tactics. Certainly, they don’t have multi-acre, outdoor Cali grow money, prompting this question: Until the state’s cannabis equity programs set aside opportunities for those with no legacy of having land, are we just doing theater?

“They are; I’m not,” Mitchell says. Cannabis equity programs “don’t know how to make sure social equity is delivered. Not defined, but delivered.”

The enabling real estate, money and cannabis have not come together for the hundreds of aspiring legitimate cannabis entrepreneurs presently struggling to get in. Oakland, Los Angeles, San Francisco and Sacramento have defined the strategy of a business initiative, but the means for realizing the goals aren’t yet in place. Help connecting investors and developers and building relationships with money sources is still missing in action.

So, too, are relationships with the weed veterans still deep in the black market.

“You treat adult-use marijuana like a business, then forget that there’s been a business here for 35 years,” Mitchell says, growing animated. The fact is that the underground pot market, in large part popularized by Californians of color, is far, far older than that.

“Today I’m gonna learn how to do this,” he continues. “And I’m going to share this. We need an ecosystem. That ecosystem doesn’t preclude white people participating. I want to include. But I want them to understand: You’re coming to us, ya dig?

“We made it because once they got our shit, they had to keep getting it,” Mitchell goes on. “Once you get into a motherfucker’s spot, and they’ve got to have your shit? They’ve got to have it. You turn from a want to a necessity. That’s what I had to position Blaqstar as — a necessity.”

Tomorrow: The Trimmigrant’s Tale


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Golden State Green Rush

Golden State Green Rush: Cannabis’ Promise and Problems

Will the marijuana El Dorado bring new wealth to California and its inhabitants, or will it produce an historic buzz kill?

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Although medical marijuana use had been legal in California since 1996, it wasn’t until New Year’s Day that adults in this state could lawfully light up a joint for the sheer pleasure of it. Yet unlike the end of Prohibition 85 years before, the response was surprisingly subdued, and ever since then life in California seems to be business as usual. Except that it isn’t.

Everything is going to radically change, and probably sooner than later. For the legalization of pot is slowly unleashing a new gold rush — the so-called Green Rush — that, like many gold rushes before it, will likely lead to environmental dangers, racial injustices and economic disparities that we can only dimly perceive today. Will the cannabis El Dorado bring new wealth to California and its inhabitants, or will it produce an historic buzz kill?

Nearly two years ago Capital & Main presented a series of stories examining some of the possible effects of legalization, and this week, as the reefer-centric date of 4/20 approaches, veteran journalist Donnell Alexander looks at the ways some Californians are preparing for the coming wave of change. As he notes, “No state has a relationship dynamic remotely like the one between California and marijuana.” Partly that’s because annually we consume 2.5 million pounds of the drug, while producing more than 13 million pounds of it.

In a report from Oakland and copublished by Fast Company, Alexander writes of the attempts by that city to legislate “cannabis equity” in order to prevent marijuana’s perennially victimized neighborhoods of color from being completely left out of the Green Rush. The strategy is to give would-be pot entrepreneurs there a leg up on deep-pocketed competitors.

Alexander also profiles an African-American grower, Bryant Mitchell, whose journey has taken the University of Chicago MBA from being a Chevron consultant to a master grower whose Blaqstar operation in East Los Angeles has produced an artisanal strain of weed called Birthday Cake. (Also co-published by Fast Company.) And, in a third story, Alexander interviews an Emerald Triangle bud trimmer, a woman living on the lowest-paying and most exploited rung in the cannabis hierarchy. “Matilda” describes a world of guns, loutish bosses, outhouses and wild bears. And yet marijuana’s legalization may offer the nomadic workers employed by larger pot farms hope in the form of state-enforced workplace protections and the chance to join a union.


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Labor & Economy

Is a Conflict-Minerals Law Helping or Harming African Miners?

A Dodd-Frank rule requires Silicon Valley tech companies and others to reveal whether minerals in their supply chains fund conflicts in Central Africa. Why do some progressives oppose this requirement?

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(ERIC FEFERBERG/AFP/Getty Images)

The conflict-minerals law’s opponents include progressive journalists and academics who say the rule rests on an overly simplistic analysis of a complex crisis.


By the end of next month Intel, HP and more than a thousand publicly traded companies are expected to report to the U.S. Securities and Exchange Commission on whether the minerals in their cellphones, laptops or other products were used to fund armed conflict in Central Africa.

This, despite concerted attempts by the Trump administration and Republicans in Congress to do away with an Obama-era rule that requires them to reveal whether their supply chains include tin, tantalum, tungsten or gold from the Democratic Republic of Congo (DRC) and surrounding countries.

The survival of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act may look at first glance like a case of blue-state resistance with California’s tech companies—backed by their ethically minded consumers—standing strong against Republicans bent on destroying progressive, forward-looking regulations.


“The legislation has actually made the situation worse for these [miners].”


“Tech companies are the ones leading the way,” says Annie Callaway, deputy director of advocacy at the Enough Project, a Washington, DC-based human rights organization that led the campaign to pass the conflict mineral law. Their due diligence efforts have been among the best arguments against those who say the law is too burdensome, she says.

But the law’s opponents include progressive journalists and academics who say the rule rests on an overly simplistic analysis of a complex crisis. Some say it has done more harm than good to Eastern Congolese mining communities, whose livelihoods are already precarious.

The law has deprived “very vulnerable populations, already very poor people, of their sole means of livelihood,” says Séverine Autesserre, a political science professor at Barnard College and Columbia University, and a former humanitarian aid worker who studies the DRC. “The legislation has actually made the situation worse for these people.”

The law seems to have staying power, nonetheless. Eight years after its passage, tech companies have changed their sourcing practices, making it unlikely that the law’s repeal would alleviate companies’ concerns about having their products associated with violent militias, supporters and a critic of the measure say.

There are “very strong business reasons” to maintain the relationships and programs connected to Dodd-Frank, according to Michael Rohwer, who worked on conflict minerals for the Electronic Industry Citizenship Coalition, now known as the Responsible Business Alliance.

Companies increasingly recognize the efficiencies as well as the “risk mitigation” benefits, says Rohwer, now with BSR, a non-profit business network focused on sustainability.

The risks of sourcing from the DRC were made clear to companies in 2008 when U.S. human rights organizations launched a campaign that highlighted the role that the minerals found in jewelry and electronics play in funding violence, including sexual violence used as a weapon of war against women and girls, in the eastern DRC.


The goals of multinational companies—and their ethically-minded consumers—are not identical to those of any region, war-torn or otherwise.


That campaign drafted high profile celebrities, like actors Ben Affleck and Robin Wright, as well as idealistic college students eager to leverage their buying power and social media prowess to help a region that has seen millions die over the last two decades in the deadliest conflict since World War II.

Last fall, the Enough Project, a lead organization in the campaign, released a progress report that ranked the 20 largest jewelry retail and consumer electronics companies—industries that consume the most tin, tantalum, tungsten and gold–on their sourcing practices. Four of the five best performers—in terms of responsible sourcing practices–were Silicon Valley-based tech companies, with Apple securing the lead spot.

Thus far, the rule has withstood a lawsuit brought by the National Association of Manufacturers, a threatened executive order and House legislation aimed at its elimination. (The biggest threat to the rule remains the attachment of a rider to a continuing resolution in Congress, according to Arvind Ganesan of Human Rights Watch.)

The law has also withstood criticism from more than 70 critics who signed an open letter in 2014 that blamed Dodd-Frank for driving some unemployed miners to join militias or to turn to smuggling, and for misunderstanding the cause of the conflict. Last year, a journalist completed a two-part investigative series that found that the law imposed a monopoly on miners that suppressed prices and forced some to trade their wares illegally.

Both the rule’s advocates and critics agree that its roll-out was problematic. The DRC’s president, Joseph Kabila, instituted a six-month ban on mining shortly after the law was passed in 2010 but before it was implemented. A United Nations Working Paper, published in 2016, attributed a child mortality increase of 143 percent in mining communities to the implementation of the Dodd-Frank conflict mineral rule.

The Enough Project’s Callaway argues that most of the criticism of the Dodd-Frank rule relies on information from 2014 and earlier, in the aftermath of its implementation. “Since then, there’s been tons of progress,” she says. She points out that of miners producing tin, tantalum and tungsten, 79 percent of those surveyed in 2016 by the International Peace Information Society are no longer working under threat of armed groups and that less violence can pave the way for other improvements, “once the conflict is out of the mines.”

But “overall, armed presence at mining sites has persisted over the last years in eastern DRC,” according to the study by the Belgian International Peace Information Service that Callaway cites. That’s because the majority of gold mines – the most important mining sector in the region – remain under the influence of armed actors, even as the tin, tantalum and tungsten mines have seen dramatic reductions in violence, according to the report.

The law has supporters from the region. Representatives from more than a 100 Congolese civil society organizations signed letters in support in of the rule when SEC commissioner Michael Piwowar opened up public comment to explore whether it should be implemented early last year. “The people who are most impacted by these changes are saying please don’t mess with this,” Callaway said.

Ben Radley, a British doctoral student, who helped make a 2015 documentary sharply critical of the Enough Project, remains a skeptic of the law. But he argues that repealing it would also constitute “a backward step” and a futile one at a time when the DRC and the European Union are creating sourcing standards for mining.

It’s very difficult to measure the impacts of the law because information is so hard to come by in the region, adds Radley, who lives in Kinshasa. “The numbers are so easily manipulated from both sides of the debate” because of lack of quality data, he says.

Furthermore, the Dodd-Frank rule is not the only force affecting miners’ livelihoods for better or worse. The price of minerals has been falling in recent years. Meanwhile, a U.N. peacekeeping force of 18,000, the world’s largest, is stationed in the eastern part of the country.

The laws’ critics say there are lessons to be learned for consumers and businesses that want to make a positive difference in the region. Autesserre would like to see Western advocacy groups do a much better job consulting Congolese mining communities as they develop their policy agenda. Radley suggests that advocates focus on labor and human rights issues instead of ensuring products are “conflict free.”

The Enough Project’s report calls for increased investment in “livelihood projects” on the part of end-user companies doing business in the region. So far, such investment has been inadequate . Apple, Microsoft Corp., Google, Signet and Tiffany contributed a paltry $500,000 toward improvements in Congolese mining communities in the last fiscal year, a mere “rounding error of the more than $3 trillion combined market capitalization of the 20 companies Enough ranked,” as the report points out.

Most of the due diligence work conducted by multinational corporations happens outside the DRC, at smelters, the factories that extract the minerals from the ore. Radley says companies would have more credibility if they undertook the more resource-intensive approach of working directly at the mine site, where advocates hope to improve conditions.

Some companies are already moving in that direction. Bloomberg reported in February that Apple is in negotiations to secure cobalt, a mineral used in batteries, directly from miners. Cobalt is not covered under the Dodd-Frank rule, but a 2016 investigation conducted by Amnesty International found cobalt was mined by child laborers.

Still, the goals of multinational companies—and their ethically-minded consumers—are not identical to those of any region, war-torn or otherwise. Perhaps partly with the tangled politics and human rights landscape of Central Africa in mind, Apple pledged last April to one day end its reliance on mining entirely and make products only from renewable resources or recycled material.

That has BSR’s Rohwer feeling optimistic. “I’m eager to see more companies get involved in product reuse, repair, refurbishment and recycling,” he says. “I think that would be a huge benefit for the tech sector.”


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Immigration

Salinas Farm Workers March to Oppose Immigration Raids

Protest marches, which also commemorated the birthday of UFW co-founder Cesar Chavez, follow several months of UFW activity opposing immigration enforcement, and of organizing workers to defend themselves against it.

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All photos by David Bacon


In Salinas, California, last Sunday, over a thousand farm workers and allies filled the streets of its working-class barrio to protest the Trump administration’s immigration policies, including an increase in immigration raids that, according to United Farm Workers President Arturo Rodriguez, are “striking terror in rural communities across California and the nation.” It was one of six marches taking place this month in agricultural communities around California, Texas and Washington state.

Highlighting the cost of the immigration crackdown were the deaths last month in Delano of husband and wife Santos Hilario Garcia and Marcelina Garcia Porfecto. On March 13, the couple, both farm workers, had just dropped off their daughter at school on their way to work when two black, unmarked Jeeps with tinted windows, driven by Immigration and Customs Enforcement (ICE) agents, stopped them. The couple drove off, but lost control of their car, hit a utility pole and flipped over, killing them both. They leave six children behind.

According to a police report obtained by the Los Angeles Times, immigration agents told police that they were not in “pursuit with emergency lights/sirens,” but that surveillance footage appears to show the ICE vehicles following the couple with emergency lights flashing. The Delano Police Department has asked Kern County prosecutors to investigate the discrepancies in the immigration agents’ accounts of the incident. On Monday, ICE spokesperson Richard Rocha sought to divert blame in a statement to the Times that sanctuary policies, “have pushed ICE out of jails,” and “force our officers to conduct more enforcement in the community — which poses increased risks for law enforcement and the public … It also increases the likelihood that ICE will encounter other illegal aliens who previously weren’t on our radar.”

The marches, which also commemorated the birthday of UFW co-founder Cesar Chavez, follow several months of UFW activity opposing immigration enforcement, and of organizing workers to defend themselves against it. The union has distributed fliers in the fields that tell workers, “Don’t sign anything and demand to speak with a lawyer. Take photographs, videos, and notes about what happens, including names, and license plates.” It lists a toll-free number to call for help.

Organizers are advised by the UFW Foundation to tell employers that ICE cannot enter the private area of their business without a signed judicial warrant, that in I-9 audits, employers have three work days to produce the forms, and that employers also have the right to speak to an attorney before answering questions or signing ICE documents.

In March, UFW protesters in Hanford, Visalia and Modesto picketed the offices of Republican Congressmen David Valadao, Devin Nunes and Jeff Denham, respectively. General meetings denouncing ICE actions were also held in Salinas and Orosi, and protests in Merced and Bakersfield.

“Do growers who supported and financed the campaign that put Donald Trump in office condone the climate of fear that is gripping farm worker communities?” a union statement asks. It points out that growers are currently supporting bills in Congress to remove protections from guest workers recruited in Mexico. “Such legislative schemes are aimed at driving down the wages and working conditions of all agricultural workers. We will fight them.”

The Center for Immigration Studies, an arm of the anti-immigrant lobby in Washington, DC, used Cesar Chavez’ birthday to announce the launch of National Border Control Day “in tribute to the late labor leader and civil rights icon’s forceful opposition to illegal immigration and support for strong border enforcement.”

UFW spokesperson Marc Grossman called that “an abomination.” A UFW statement in response said, “There are two separate and distinct issues — immigration reform and strikebreaking.” The union had a controversial history of trying to use immigration enforcement to remove undocumented strikebreakers in strikes during the late 1960s and ‘70s, but the statement says that from the first grape strike “the UFW welcomed all farm workers into its ranks, regardless of immigration status.”

It noted that the union opposed employer sanctions, which made it illegal for undocumented immigrants to work, and lobbied for the amnesty provision in the 1986 Immigration Reform and Control Act that enabled one million undocumented farm workers to become legal residents. Given that the union’s membership reflects the composition of farm workers generally, most of whom have no papers according to Farmworker Justice, a farm worker advocacy group in Washington DC, it is possible that a majority of the union’s members are undocumented.

According to Rodriguez, protesting immigration enforcement is part of defending farm laborers generally, both union and non-union. At the Salinas rally, Rodriguez told workers and supporters “Santos Hilario Garcia and Marcelina Garcia Porfecto, and their six orphaned children, are casualties of the Trump administration’s targeting of hard-working immigrant farm workers who toil and sacrifice to feed all of us.”


 

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Labor & Economy

The Big Money: Revealing the Chasm Between CEO and Worker Pay

Co-published by Fast Company
Thanks to Dodd-Frank, companies are now required to publicly disclose their CEOs’ pay in comparison to their median employees’ salaries.

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Co-published by Fast Company

If you’re among the roughly half of all Americans who don’t own stock, you may not care that April is the peak of proxy filing for stockholders. But if you have a 401(k) or investments in a pension or mutual fund, you do own stock and therefore have some say in the operations of the biggest corporations in the world.

This year you may want to pay a little extra attention. Eye-popping new information about outsize CEO pay is coming out in proxy statements filed with the Securities and Exchange Commission. Last year’s SEC rule mandated by Dodd-Frank Wall Street reform legislation for the first time requires companies to disclose CEO’s pay in comparison to the median employee salary range.

Now you can go online and see that Indra Nooyri, CEO of PepsiCo, purveyor of Cheetos, Doritos and an array of beverages, was compensated at a rate of 650-to-1—her payout of $31,082,648 compares to the median salary of $47,801. PepsiCo emphasizes that more than half of its employees are overseas in “developing and emerging markets such as Mexico, Russia, Brazil, China and India,” where market trends and the cost of labor can influence employee compensation rates.

Fresh Del Monte Produce CEO Mohammad Abu-Ghazaleh was paid $8.5 million last year, contrasted with the median worker salary of $5,833 annually, a ratio of 1,465 to 1. Factored into the equation are the 80 percent of employees who work in economies where the pay scales are at the low end–Costa Rica, Kenya, Guatemala and the Philippines.

The multi-million-dollar executive compensation figures (which include bonuses, cash and pension boosts) are on display in the fourth annual report on CEO pay released in March by the non-profit As You Sow. The foundation promotes corporate social and environmental responsibility through shareholder advocacy.

High CEO pay “over-emphasizes the impact of a single individual at a company, rather than rewarding the work of the many company employees,” the report says. “It raises economic inequality to such a level that it becomes increasingly incompatible with a well-functioning economic system.” Pay scales don’t correlate to CEO performance and higher returns for investors, the report notes.

Pay tables are sortable by company name and total compensation, but there’s no pay ratio data yet. Information is just trickling out as proxy season gets underway, one of the authors, Rosanna Landis Weaver, CEO Pay program manager at As We Sow, told Capital & Main. She has been busily gleaning it for the report next year from the 14A schedules that companies are required to file with the SEC to make available for the SEC website.

“This is fairly new,” she said. “Investors didn’t get to vote on pay until Dodd-Frank.”

The As You Sow Foundation suggests investors exert pressure in the direction of pay equity during proxy voting season and provides a how-to guide.

“One of the things you can do is move your money to a social investment fund,” Landis Weaver said. “You could talk to your adviser and say ‘I’m looking to move my money to a fund that votes against these pay packages more often.’”

There are other resources online. FundVotes.com explains proxy voting and tracks investment policies by issues such as gender pay equity.

It’s not a mass movement but as more information comes out, Landis Weaver said, “people are beginning to figure out how to use this and [are] making more and more noise about this stuff.”


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Study: Forced Arbitration Contracts Cover 60 Million Workers

According to Economic Policy Institute research, more than 67% of California’s non-union, private-sector workplaces are governed by mandatory arbitration agreements, compared to a national average of 54%.

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Images of Oklahoma teachers in the streets demanding pay raises and education funding, and of hotel workers and Hollywood celebrities fighting sexual harassment in the workplace may have cheered labor advocates. But a new study, released today by the Economic Policy Institute, offers a sobering reminder of the eroding bargaining power of U.S. workers.

In a trend made possible by a series of Supreme Court decisions, American employers are increasingly requiring their employees to give up their rights to pursue claims in court by requiring them to sign arbitration agreements as a condition of employment, according to the study.

Those agreements push disputes over pay and discrimination into privately-funded and confidential arbitration proceedings that labor-side attorneys and some researchers say favor employers. Since the early 2000s, the share of workers subject to mandatory arbitration agreements has more than doubled and now covers 60 million private-sector workers, according to the EPI report.

“Mandatory employment arbitration,” the report claims, “has expanded to the point where it has now surpassed court litigation as the most common process through which the rights of American workers are adjudicated and enforced.”



 

Mandatory arbitration agreements are widespread in consumer contracts for everything from cellphones to nursing homes. Employee arbitration agreements have drawn less attention. But the “Me Too” movement shone a light on employment contracts that advocates say protect workplace predators from accountability.

Fox News anchor Gretchen Carlson, who ultimately won a settlement from the network for $20 million over sexual harassment, said last year that ending mandatory arbitration in employment contracts “has become my mission.” Her campaign, however, has been an uphill battle while Republicans are still in control of Congress.

The EPI report, an expanded version of one published last September, finds that such agreements are most common in workplaces with more women, African-American and low-wage workers.

California is one of three states where mandatory arbitration agreements are especially prevalent. More than 67 percent of non-union, private-sector workplaces in the state are covered by mandatory arbitration agreements, compared to a national average of 54 percent.

California’s employers’ embrace of arbitration agreements has long been viewed as a reaction to the state’s robust employee protections. But the EPI study points out that Texas, which is generally considered more generous to employers, has essentially the same proportion of workplaces covered by mandatory arbitration agreements.

The study, by Alexander Colvin, a Cornell University professor of Labor Relations and Conflict Resolution, reported on another growing trend among employers — requiring workers to give up their right to file class action lawsuits. Colvin found that 25 million workers who signed arbitration agreements as a condition of employment also waived their right to join together in a lawsuit.

That’s a right that labor lawyers say cannot be signed away. This spring, the Supreme Court will decide National Labor Relations Board v. Murphy Oil USA, Inc., a case that determines whether these so-called class action waivers are a violation of the National Labor Relations Act.


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Labor & Economy

Why a Pioneering Green Energy Investor is Optimistic About the Future of the Planet

Daniel Weiss, managing partner of Angeleno Group, describes on the latest episode of “The Bottom Line” podcast how clean energy has moved from the realm of politics and policy to that of the markets and economics.

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When Daniel Weiss co-founded Angeleno Group in 2001 to fund green energy companies, few would have regarded him as a master of timing.

Oil was trading at a lowly $23 per barrel. The California electricity crisis had recently triggered large-scale blackouts across the state. Enron had just gone belly-up.

“To launch an investment firm and raise capital to invest in this space . . . maybe we ought to have had our heads examined, ” Weiss, one of Angeleno Group’s two managing partners, told me on the latest episode of my podcast, The Bottom Line.

Seventeen years and $2.5 billion worth of investments later, Weiss and his colleagues have proven that they were lot more savvy than silly.

Along the way, they’ve kept their eyes on four fundamental drivers: an urgent need to replace an aging and inadequate power infrastructure in the United States and elsewhere; the steadily increasing demand for fuel and electricity as ever more of the world’s population enters the middle class and becomes urbanized; a push by different nations to secure their own energy independence; and the rise of global warming and other environmental issues as a major social concern.

“You add those four things up,” Weiss notes, “and we thought, ‘These are not 10-, 20-, 30-month trends. These are 20-, 30-, 40-year trends. And they’re going to create massive investment opportunities.’”

Plus, Weiss adds, the field was pretty wide open back then. “Not a lot of folks were focused on the next generation of energy,” he says.

At least not in the private sector. Two decades ago, most of those paying close attention to our biggest energy and environmental problems — and how we might overcome them—were public officials, nonprofit leaders, and scholars.

Not any longer, however. “We really are shifting,” Weiss says, “from a world in which adoption of some of these technologies is driven by politics and policy to a world . . . being driven by markets and economics.”

Actually, among Angeleno Group’s greatest strengths is its ability to draw on the assistance of those who have deep experience in both arenas—corporate and government. The firm’s advisory board includes John Browne, the former chief executive of British oil giant BP; Ernest Moniz, who served as Energy Secretary under President Obama; Bennett Johnson, the long-time senator from Louisiana who chaired the Energy and Natural Resources Committee; and nine others with similarly golden credentials.

Motivating these heavy-hitters — who take a very active role in helping Angeleno Group and its portfolio companies — is the belief “that this $6 trillion vertical of the global economy is an important one,” Weiss says, and that “technology, science, and entrepreneurship in this sector can make a really positive difference.”

Despite the ongoing threat of climate change and a number of backward steps on the environment made by President Trump and his administration, Weiss thinks so too. He points out that the companies Angeleno Group has invested in — a range of enterprises offering products and services in wind and solar, clean transportation, energy efficiency, and more — have had the effect in terms of reduced carbon of taking the equivalent of 50 million cars off the road per year.

But there’s another metric that hits even closer to home. In 1977, when Weiss was growing up in Los Angeles, there were more than 120 Stage 1 smog alerts. “You couldn’t go out and play on the blacktop” because the air was so nasty, he recalls. But now, “in my kids’ experience in elementary school . . . in Los Angeles there were zero Stage 1 smog alerts” — even though there’s far more traffic on the road.

What made things better, says Weiss, was a steady progression in which politics and policy helped to drive the adoption of new technology (in that case, the catalytic converter) until, eventually, market forces took over and spurred truly widespread change.

“I’m optimistic,” he says, “because of that track record and history that we have of innovating our way against some of these challenges.”

You can listen to my entire interview with Weiss here, along with Marty Goldensohn reporting on Coca-Cola’s “World Without Waste” sustainable packaging campaign, and Rachel Schneider pondering whether the United States can ever have lasting full employment.

The Bottom Line is a production of Capital & Main

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