Sleepless nights and cognitive dissonance at the State House


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Speaking at the Greater Providence Chamber of Commerce (GPCC), alongside Senate President Teresa Paiva Weed and Governor Gina Raimondo, Nicholas Mattiello proudly ticked off a list of his tax cutting accomplishments since becoming Rhode Island’s Speaker of the House.

We’ve reduced the corporate tax rate in Rhode Island.

“We exempted sales tax on energy costs to assist businesses.

“We raised the exemption on the estate tax to keep successful folks in the State of Rhode Island.

“We eliminated the social security tax on many Rhode Islanders so we can assist the middle class after a lifetime of commitments so that they can stay and thrive in Rhode Island.

“We eliminated tax on radiology services to assist that industry.”

Acting as the self-appointed Yin to Mattiello’s Yang, Paiva-Weed spoke about how the Speaker and Governor stood with her “to take some of the most difficult votes the General Assembly could take to cut the budget…

One of them was last year… and that was cutting $70 million from Medicaid. That was a hard vote…

“In addition, many of you in this room were not standing here cheering when we had to make those difficult votes to ensure the passage of pension reform. And that was a vote that quite honestly kept me up many nights, because it really did hurt people…”

It really did hurt people.” Let that sink in for a moment.

 

“We raised the exemption on the estate tax to keep successful folks in the State of Rhode Island,” the Speaker had said, not five minutes earlier.

 

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Teresa Paiva-Weed

The message was as jarring as it was obvious: Tax cuts on the rich hurt people. Our leaders know this, but they don’t want to believe it. It’s called cognitive dissonance.

Beyond just hurting people, poorly targeted tax cuts do nothing to help the greater economy and instead impoverish a government’s ability to maintain infrastructure. Hence, RhodeWorks.

RhodeWorks will shift the financial burden of repairing RI’s roads and bridges onto trucking companies, who will maintain their profits by increasing the price of goods. This will burden the poor and middle class much more than it will the rich, who will be able to manage slight price increases by drawing on the extra money they keep through the tax cuts they’ve been granted.

Mattiello
Nicholas Mattiello

Despite Paiva-Weed’s protestations, she has not cast “difficult votes”. A difficult vote would be one in which she stood up for those without power and against the money of the connected elite. A difficult vote would be one of compassion and courage.

No, the votes Paiva-Weed made were easy, because the people she hurt have no power to hold her accountable for their pain. Her conscience might bother her, but what good is a conscience when the corporate tax rate needs to be cut?

As for Mattiello, after he proudly listed his accomplishments, he said, “We have been laser focused on moving our economy forward and doing the kind of things that build economic wealth and growth and jobs in the State of Rhode Island.”

“And then I hear,” said Mattiello, pausing as the cognitive dissonance crackled through his brain, “that there’s a consensus that we have the worst roads and bridges in the country and it’s the leading concern of businesses. It’s the number one driving force for businesses in their decision making.” Another pause.

Mattiello’s pauses say it all. All that money he gave away to his well off neighbors was for nothing. All those cuts to pensions and Medicaid were for nothing and all those people hurt by these cuts were hurt for nothing.

Our leaders bought the lies of economic charlatans, gave away millions in tax cuts, impoverished our state and hurt people terribly, only to find that what was really needed was a strong infrastructure, an infrastructure we might have been able to afford if we weren’t crippling our economy by cutting the taxes of dead millionaires.

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Fast tracking RhodeWorks: Passing unpopular legislation in an election year


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DSC_0914Ahead of yesterday’s finance committee votes in both houses of the General Assembly approving RhodeWorks, the truck toll plan, a press conference was held at the Greater Providence Chamber of Commerce (GPCC) featuring some of Rhode Island’s most powerful political, business and labor leaders. They were there to present a unified message in support of the tolls, despite vocal opposition.

One prominent Rhode Island business owner, whose business has “been a member of the Chamber for almost as long as there’s been a Chamber” told me that contrary to GPCC President Laurie White‘s claims that this issue has been discussed with membership, he was never consulted about the plan, despite his business’s dependence on trucks for shipping. In fact, he said, “I didn’t even hear about this meeting until I heard about it on the radio this morning!”

Gina RaimondoAs I said before, RhodeWorks is inevitable. The legislation has been fast tracked not because there is a sudden, urgent need to fix our roads and bridges; the need for this repair is decades old. The legislation is being fast tracked because the necessary arrangements between the various parties involved have been carefully worked out, but in an election year, meaning that the sooner elected officials put this issue in their rear view mirror the better. Several legislators are going to be challenged for their seats because of their votes on this.

Not that Republican challengers are offering anything better. As Sam Bell pointed out yesterday, the Republican plan seems to be privatization, which means private businesses will take over our roads and bridges and charge whatever tolls they want to for profit, or their plan is cutting the budget, denying important social services to families in need. (Not to worry, though: Senate President Paiva-Weed promises that she and Speaker Mattiello will continue to cut the budget, cut taxes and cut services. More on this in a future article.)

The cost of RhodeWorks will be passed onto consumers. Ocean State Job Lot raised a stink over the weekend when they put their expansion plans on hold, threatening as yet unrealized jobs, but after this all pans out, Job Lot will not lose out on any profits: They will simply raise the price of their goods. This means that we are not imposing a user fee on businesses as much as we are coming up with yet another regressive tax that will affect the poor and middle class more than the rich, which is just the way our political leaders like it.

The General Assembly is expected to pass RhodeWorks today, and Governor Raimondo will sign the legislation asap. In the meantime, you can watch the full press conference below.

Laurie White, Greater Providence Chamber of Commerce (GPCC) President

RI Governor Gina Raimondo

Providence Mayor Jorge Elorza

Peter Andruszkiewicz, Blue Cross & Blue Shield of Rhode Island CEO and President

Scott Wolf, Grow Smart Rhode Island Executive Director

Lloyd Albert, AAA of Southern New England Senior Vice President

Michael F. Sabitoni, Rhode Island Building and Construction Trades Council President

House Speaker Nicholas Mattiello

Senate President Teresa Paiva-Weed

Woonsocket Mayor Lisa Baldelli-Hunt,
Central Falls Mayor James Diossa and
Lt. Governor Dan McKee were in attendance but did not speak.

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RI business community launches pre-emptive attack on fair scheduling


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11-Ways-the-Schedules-that-Work-Act-Would-Make-the-Lives-of-Working-Families-Better_blog_post_fullWidthAside from raising the minimum wage, fair scheduling legislation is one of the most important ways in which workers can get their lives under some semblance of control when working for companies that try to maximize profits and reduce labor costs by scheduling as close to last minute as possible. A little over a year ago San Francisco became the first city to pass the Retail Workers’ Bill of Rights, a series of labor reforms centered around the idea of fair scheduling.

Workers at many retail and food service companies are required to always be available for work as management waits until they have up to the minute sales data and weather reports before deciding on whether or not to bring the worker in and pay them. This wreaks havoc on a worker’s ability to arrange for child care, organize a school schedule, make travel arrangements to and from work or secure a second job to make ends meet.

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Senator Elizabeth Warren (Photo (c)Tim Pierce)

A report, Set Up to Fail, demonstrates the difficulty many low-wage workers with unfair schedules face. “For many low-wage working parents, the conditions of their jobs effectively set them up to fail: meeting both their work and family obligations becomes an impossible juggling act. And too often, despite their best efforts, parents’ low wages and work conditions undermine their children’s chances for success as well.”

After the success of fair scheduling legislation in San Francisco, activists in Minneapolis were cautiously optimistic about passing similar legislation in their city, until Mayor Betsy Hodges withdrew her support after getting pressure from the local Chamber of Commerce. According to writer Justin Miller, “In late September, opponents formed the Workforce Fairness Coalition by the Chamber of Commerce, and included prominent members like the Minnesota Business Partnership (which represents about 80 businesses, including Target, U.S. Bancorp and Xcel Energy) and the Minnesota Restaurant Association. They took specific issue with the scheduling law, saying that it would impede operations and could force businesses to flee the city.”

Here in Rhode Island, the fight over fair scheduling began when the Greater Providence Chamber of Commerce (GPCC) brought the subject up at last week’s luncheon. GPCC President Laurie White asked RI House Minority Leader Brian Newberry (R, District 48 North Smithfield and Burrillville) about fair scheduling, what she referred to as, “long term work scheduling requirements, otherwise known as predictive scheduling.”

“How do we set the right balance between employers and workers in order to keep our small and mid-sized businesses competitive,” asked White, “and also keep Rhode Island businesses competitive vis-à-vis other places?”

“You folks know better than anybody what kind of mandates help or hurt your businesses,” replied Newberry, “so when it comes to [mandates such as fair scheduling] we need to hear from [business leaders], because there are always… well meaning advocates out there for all kinds of groups who are less interested in the fundamental cost of what they want… You need to talk to us. The business community in this state, not just the big business community but small businesses need to be more active [in lobbying government representatives]… if you don’t do it, we don’t hear from the right groups of people and we will make mistakes.”

The language and contours of the coming fight are already taking shape, and advocates for fair scheduling here in Rhode Island have yet to raise their voices. Note that advocates for fair scheduling are condescendingly pronounced “well-meaning” by Newberry, as if their concerns simply emotional and compassionate, lacking any sense of business reality. Note that Chamber President White can’t bring herself to call the scheduling “fair,” that implies present scheduling is unfair, so she calls uses the words “long term” or “predictive” scheduling instead.

Note how Newberry recommends that the Chamber and other small business groups show up when these kinds of bills are being discussed in General Assembly committee meetings because presumably if the “right” groups of people don’t advocate for profits over people, then the wrong groups of people will secure additional legal protections for people, something Newberry refers to as “mistakes.”

Fair scheduling legislation has many different parts, but taken together, it empowers workers so that they are protected from abusive scheduling practices. Included in typical fair scheduling legislation are the following ideas:

  • Advanced notice of work schedules- Requires employers to give 3 weeks notice of schedules and 3 weeks to notify workers of changes to their schedules. It also allows workers to decline work hours not included on the original schedule.
  • Compensation for changed shifts- Provides one hour of predictability pay for employer-initiated changes to the schedule and provides minimum reporting pay when a shift is cancelled or significantly reduced with less than a day’s notice.
  • Right to request flexible working arrangement- Allows workers to request scheduling accommodations without fear of retaliation.
  • Right to rest- guarantees a day of rest every week (workers do not have to work more than six days in a row) and guarantees adequate rest between shifts (no more “clopens” where a worker closes the store at midnight and opens the store at 6am.)
  • Equal treatment regardless of hours worked- prohibits discrimination in pay, promotion and benefits based on the number of scheduled hours
  • Retention pay- Requires employers to compensate workers for their availability by making a minimum biweekly payment of $150, which can be met through wages or benefit payments. No worker can be paid less than this amount for two weeks work.
  • Offer of work to existing workers- requires employers to offer work to existing qualified part-time workers before hiring new staff or temporary workers.
  • Also included in any legislation will be language on protection of these rights with penalties for employers who violate them, prohibitions of retaliation against workers who claim these rights, the posting of notices explaining these rights to workers, and enforcement requirements.

A decent list of fair scheduling resources can be accessed here at the National Women’s Law Center. As with minimum wage and tipped minimum wage, women are disproportionately impacted by unfair scheduling.

Jobs with Justice has a terrific overview of fair scheduling legislation with links to additional resources here.

Also, CLASP (Center for Law and Social Policy) has a national repository of fair scheduling news articles, briefs, analyses, etc.

Senator Elizabeth Warren has been out front on this issue, and has introduced the Schedules That Work Act, though the likelihood of such a bill passing on the national level in a Republican controlled Congress is low.

This is why the battle for fair scheduling is being done on a state by state or city by city basis, and why the Greater Providence Chamber of Commerce is already making moves to oppose such legislation.

We cannot live our lives serving the whims of work. Work exists to serve people, and when we forget this, families suffer. Fair scheduling is a small step in addressing this injustice.

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