The RI State Investment Commission voted to invest $20 million with GEM Realty Capital, despite the company’s claim that the health and safety of employees at the Sofitel Los Angeles Hotel in Los Angeles, one of the many properties owned by the company, is not something they can have any affect on.
GEM Realty describes itself as a real estate investment company that invests in “private-market real estate assets and publicly traded real estate securities”. At the meeting on Wednesday morning, two GEM Realty representatives admitted that there were problems at the Sofitel Los Angeles Hotel, but said that as they are not the majority investor in the enterprise or involved in the day-to-day management of the business, there is little they can do to effect positive change in the way workers are being treated at the properties they invest in.
Treasurer Seth Magaziner lead the questioning of the company reps about the allegations of unsafe and un-sanitary labor conditions at the hotel and Commission member Marcia Reback asked about the use of a firm known for union busting to prevent workers from unionizing. The GEM Realty reps assured the Commission that the union-busting firm was no longer employed by the hotel and that the health and safety issues were in the process of being resolved via the National Labor Relations Board (NLRB).
On April 25 employees filed a complaint with the CA Division of Occupational Safety and Health complaining about the hotel’s failure to provide safety equipment to employees charged with cleaning medical waste from Sofitel Los Angeles Hotel rooms. Many guests receive treatment at a nearby hospital and leave medical waste behind. Though management shows an instructional video every year about the proper disposal of needles and bloodied linens, employees say “the hotel does not provide the safety equipment shown in the video”.
The Sofitel LA Hotel has also drawn “multiple Unfair Labor Practice charges that are currently being investigated by the regional office of the NLRB alleging that since employees raised the health and safety issues, hotel management has responded by threatening and surveilling employees and in one case illegally firing one of the employee leaders,” says Jim Baker coordinator for Unite Here. These case can be accessed here.
Then there’s the class action lawsuit seven employees have brought against the hotel alleging wage theft. Business Wire reports, “Six of the plaintiffs allege being paid less than the minimum wage while working at the Sofitel Los Angeles at Beverly Hills. A former barback, as well as three housekeeping workers, a banquet worker, and a restaurant server, allege that management underpaid or have been underpaying them by up to $5.37 per hour.”
Aside from the allegations of deplorable labor practices, there may be sound financial reasons to avoid investing in GEM Realty, says Sam Bell, executive director of the Rhode Island Progressive Democrats of America, has concerns about the very idea of private equity investments for our pension funds.
“With their high fees, private equity investments are a bad deal for our pension fund,” says Bell, “As Treasurer, Gina Raimondo, who made her fortune in this controversial industry, made a big move into high-fee funds, and that decision continues to drive our pension fund’s poor performance. Seth Magaziner campaigned on a new kind of politics. Expanding private equity investments, while other funds are pulling out of high fee options, would represent a move back to the aggressively pro-Wall St. policies of the previous Treasurer.
“Real estate private equity funds are especially poor choices, given their distinctive record of pushing policies that hurt American families,” says Bell, ” In the case of GEM Realty Capital, it is aggressive violations of workers’ rights that stand out, but across the real estate investment industry in general there is a serious and pervasive culture of immorality.”
Though the GEM Realty reps were asking for a $30 million investment from the state, the board seemed to feel that a $20 million investment was more in line with their investment strategy.
Speaker Nicholas Mattiello said that though he “is very supportive of raising the minimum wage,” and that Rhode Island “needs to be competitive” with our neighboring states, he has, “heard from the business community” that they need time to absorb the current wage before increasing it again. Mattiello said that the minimum wage has gone up four years in a row and, “I’ve indicated that we’re going to look at it next year.”
The State House rally against Invenergy‘s proposed fracked gas and diesel oil burning power plant became confrontational as counter-protesters, identifying themselves as Building Trades union members, disrupted the proceedings by holding signs in front of speaker’s faces and attempting to grab the microphone. The rally was planned by 
The people of Burrillville realize something about the the Energy Facilities Siting Board (EFSB), that Margaret Curran, who chairs the board, does not. During Monday night’s public comment meeting, held to decide the fate of of Invenergy’s proposed fracked gas and diesel oil burning power plant, Curran several times tried to stop the crowd from rising and cheering and clapping when someone from the public made a particularly smart or heartfelt point during their five minutes before the board. Other times Curran would attempt to cut speakers off, even as the crowd became agitated and yelled, “Let them speak!”
“You’re taking time from other people by going over your time limit,” Curran would say, but Curran didn’t seem to realize that the community of Burrillville is united. Everyone who rose in opposition to the power plant speaks not just for themselves, but for everyone.
Don Allen said if you could pick the worst place to place a power plant based on prevailing winds, Burrillville would be the worst.
The bill Representative Cale Keable introduced to the RI House that seeks to overhaul Rhode Island General Law 44-4-30 by giving the residents of Burrillville more power over whether or not Invenergy‘s proposed fracked gas and diesel oil burning power plant gets built in their town has been reviewed by Conservation Law Foundation (CLF) Senior Attorney Jerry Elmer, and his verdict is clear: “Despite its imperfections,” says Elmer, “the Keable Bill is an excellent bill that ought to be supported by enviros, because – for the two separate reasons outlined above — it makes it much less likely that the Invenergy plant will be built.”
After a meeting with Governor Gina Raimondo, Rep. Cale Keable and Sen. Paul Fogarty introduced legislation that would give residents in Burrillville the ability to vote on “any tax agreement negotiated between the Burrillville Town Council and the developers of a proposed power plant in town be subject to voter approval.” Keable and Fogarty represent voters in Burrillville.
Workers at Eastland Food Products Inc voted overwhelmingly to unionize with UFCW Local 328. The vote Thursday was 74-37 in favor of the union. 
The Sierra Club’s ally the Communications Workers of America (CWA) is currently on strike against Verizon and Verizon Wireless (Verizon) in 9 northeast and mid-Atlantic states, including Rhode Island, after contract negotiations broke down. (The other states are MA, NY, NJ, PA, MD, DE, DC and VA). CWA members have been critical allies to the Sierra Club on issues ranging from democracy to trade to climate disruption. Now it is our turn to stand up for them.
I had never heard of Eastland Food Products Inc before hearing about the efforts of workers there to unionize. The company cleans, cuts and packages fruits and vegetables for supermarkets up and down the coast. Think of the half a butternut squash you might see at your supermarket, wrapped in plastic on a styrofoam tray. That’s likely come from Eastland Foods, 69 Fletcher Ave, in Cranston.
The following is testimony given before the Senate Labor committee on S2377, the Healthy Workplace Bill.
