Thursday, April 30, 2015

Barclays Considers Raising Wages For Lowest-Paid Workers Around The World

Barclays is considering guaranteeing a living wage to workers worldwide, as it already does for its employees and contract workers in the U.K., where the bank is headquartered.

At a shareholder meeting in London last week, Barclays CEO Antony Jenkins said he would work with the international labor union UNI Global to consider raising pay for the bank’s lowest-level workers around the world. Barclays has about 132,000 employees operating in 50 countries, but declined to say how many workers would get a raise if such a proposal were enacted.

“We are very proud of our certification as a living wage employer in the U.K.,” Jenkins said at the meeting. “We are willing to get started and to discuss this global initiative with UNI Global Union.”

Barclays started moving toward paying a living wage to workers and contractors in the U.K. as early as 2003, and officially received accreditation from the Living Wage Foundation, a U.K. group that has been pushing companies on the issue, in 2013.

The living wage measure would most directly affect bank tellers, mailroom workers and contract workers who provide the bank with cleaning and security services. In the U.K., the bank pays the thousands of workers it employs in these capacities 9.15 pounds ($14.10) an hour in London and 7.85 pounds ($12.09) an hour in the rest of the country.

The bank has not said yet how it will determine what exactly constitutes a "living wage" in different countries. In the U.K., these amounts are determined annually by a London government agency, which looks at the basic cost of living. Companies are only required to pay the U.K.’s minimum wage of 6.50 pounds an hour, and paying the living wage is voluntary.

“Paying people that work for us a wage that supports a decent standard of living makes good business sense and is in line with our values,” Barclays said in an email statement to The Huffington Post. “Currently, this is a UK-specific commitment but Barclays is aware of international efforts to combat wage inequality in other countries, and we are gathering information on how this can be implemented.”

Barclays' effort to expand its living wage commitment is just the latest sign of an emerging movement to raise pay for low-income workers globally.

“We’re in crisis in the globe with wages being too low,” said Christy Hoffman, the deputy general secretary at UNI Global, which is based in Switzerland. Hoffman cautioned that its discussions with Barclays on the issue are still in their very early days.

Hoffman compared her group’s efforts on a global living wage to the movement in the U.S. for a wage of $15 per hour for fast food employees and other workers. There are currently 10,000 Barclays employees in the U.S., Hoffman said, but it isn’t clear how many would be affected by a possible commitment to a living wage.

UNI Global is not active in the U.S. movement for $15 an hour, but it represents more than 20 million workers worldwide in Africa, Central and South America, Asia and Europe.

Jenkins' comments stand in sharp contrast to last year’s shareholder meeting, when Barclays executives came under fire for what shareholders called excessive pay packages for executives, particularly in light of the bank’s involvement in rate-fixing and other scandals over the past few years.

The higher wages in the U.K. have meant that fewer contractors leave the bank, according to a report sponsored by the company and released in January. Contractors also reported higher levels of “engagement” with their job -- i.e., they’re happier, the report stated.

“Having supported the Living Wage for over 10 years, we know that it can improve productivity, morale and retention rates,” Dominic Johnson, the employee relations director for Barclays, said in the January report. "This is not just an expression of our corporate values or an issue of social impact, but good business sense.”

Other employers that have committed to paying a living wage in the U.K. include KPMG, Burberry, HSBC and Nestle.

In the U.S., the average bank teller makes $12.81 an hour, according to the Labor Department. Pay for bank tellers in the U.S. is so low that nearly one-third of them receive some kind of public assistance, according to a 2014 UNI Global report.

UNI Global's Hoffman said that she hopes Barclays inspires other global financial institutions. "We hope this is a first step with banks," she said.


Wednesday, April 29, 2015

Big Businesses In Baltimore Told Employees To Stay Home After Riots

Some of Baltimore’s biggest employers closed their offices on Tuesday, following the violence that erupted after the funeral of Freddie Gray, a 25-year-old black man who died after suffering a spinal injury in police custody.

Johns Hopkins University, which employs more than 21,000 workers in the city, canceled all classes and events on Tuesday and asked all nonessential employees to stay home.

“This is out of an abundance of caution and uncertainty about what conditions will be like today,” Dennis O’Shea, a spokesman for the college, told The Huffington Post.

He said the school had not yet planned any outreach programs for after the unrest subsided, but that some student groups were in the city helping to clean up debris from the riots Monday.

Johns Hopkins Hospital and Health Systems, another top employer, remained open on Tuesday.

"The safety and security of our patients and employees is our priority," Kim Hoppe, a hospital spokeswoman, said in a statement. "We are advising patients to check with their health care provider to verify appointments."

Loyola University Maryland canceled all classes after 2 p.m. on Tuesday. It remains unclear whether the school will open on Wednesday.

"That's not something we know as of yet," Nick Alexopoulos, spokesman for the university, told HuffPost.

Constellation Energy, with its roughly 3,100-strong workforce in Baltimore, asked employees to work from home.

“In an effort to ensure employee safety, Constellation asked its Baltimore-based employees to work remotely,” Christina Pratt, a spokesman, told HuffPost in an email. “We will continue to monitor the situation in the days ahead and stay in regular contact with our employees.”

The city’s two largest financial companies, money manager T. Rowe Price Group and the investment bank Legg Mason, also asked employees to work from home. T. Rowe Price sent employees home early on Monday as violence broke out across the city.

“As always, the safety and security of our associates remains our paramount concern,” said spokesman Edward Giltenan, adding that T. Rowe Price employs 1,262 people at its evacuated downtown Baltimore headquarters. “We have maintained communications with our associates during this time and will continue to do so as circumstances warrant. We will also continue to monitor the situation in consultation with local authorities to determine what additional steps, if any, may need to be taken.”

Bank of America, which maintains a sizable outpost in Baltimore, said it was also focusing on safety.

"We’ve taken appropriate steps to ensure the safety of our customers and employees, which includes closing branches and administrative facilities in the affected area," spokeswoman Nicole Nastacie told HuffPost.

Morgan Stanley also has operations in the city, but a representative did not return calls requesting comment. The University System of Maryland and the University of Maryland did not immediately respond, either.

The rioting Monday in West Baltimore marked the most violent clashes between citizens and police in the United States since the unrest in Ferguson, Missouri, over the shooting death of unarmed black teenager Michael Brown last August.

This story has been updated with statements from Johns Hopkins Hospital and Loyola University.


Tuesday, April 28, 2015

Troubled For-Profit Corinthian Colleges Shutting Down As Education Department Faces Bill

Corinthian Colleges Inc., once one of the nation's largest chains of for-profit colleges, announced Sunday it is abruptly shutting down after failing to find buyers for its roughly 30 remaining campuses, leaving up to 16,000 students in the lurch and potentially costing the U.S. Department of Education tens of millions of dollars in forgone federal student loan payments.

"What these students have experienced is unacceptable," Education Undersecretary Ted Mitchell said in a blog post Sunday.

The California-based chain at its peak operated more than 120 colleges with more than 110,000 students across North America under the Everest, Wyotech and Heald brands. Last July, under pressure from the Education Department over a paperwork dispute, the company struck a deal with the Obama administration to sell or close all of its campuses over the following six-month period in order to avoid what the Education Department described as an "immediate closure," or exactly what has happened with the company's Sunday announcement.

The closure is effective Monday. Corinthian students were told in a statement posted on the company's website and via email that the company is trying to make arrangements with other schools that would enable Corinthian students to complete their studies elsewhere. Students with federal student loans who choose not to complete their programs would be eligible for full loan cancellations. Unless the Education Department recoups the money from the financially troubled company, taxpayers would eat the cost.

Corinthian said 28 campuses are closing. The Education Department put the total at 30, which includes two satellite campuses that it counts as separate locations.

"For too many students, Corinthian turned the American dream of higher ed into a nightmare of debt & despair," Rohit Chopra, the federal consumer bureau's top student loan official, wrote Sunday on Twitter.

In recent years, Corinthian has been accused by multiple federal and state authorities of systematically lying about its graduation or job placement rates, misleading potential students into enrolling and forking over tens of thousands of dollars to obtain credentials many critics believe to be of dubious value. The company annually received some $1.4 billion in federal financial aid for its students, according to the Education Department.

Corinthian finalized a deal in February to sell more than 50 of its campuses to one of the Education Department's contracted debt collectors in a transaction that effectively bailed out the company and deprived nearly 40,000 students of the chance to have their federal student loans canceled. The forced sale followed months of alleged delays by the company to turn over sufficient paperwork about its job placement rates to the Education Department.

Last summer, the department had limited Corinthian schools' access to federal financial aid, a move that ultimately set off a chain of events that culminated with Sunday's announcement. The company in a statement blamed federal and state regulators for its abrupt closure.

The surprise announcement that the company will immediately shut down its remaining campuses across five states now puts the Education Department in the exact position it had hoped to avoid. The department, led by Education Secretary Arne Duncan, had hoped to either broker a sale of the company's remaining campuses -- keeping them open for current students -- or help the company strike agreements with other schools to allow Corinthian students the opportunity to complete their programs.

"We believe that we have attempted to do everything within our power to provide a quality education and an opportunity for a better future for our students," Jack Massimino, Corinthian's chief executive, said in a statement. "Unfortunately the current regulatory environment would not allow us to complete a transaction with several interested parties that would have allowed for a seamless transition for our students. I would like to thank our employees for their selfless dedication and commitment to fulfilling the educational and career goals of all of our students."

The company said it had been in what it described as "advanced negotiations" with several potential buyers for its Heald campuses as well as other schools that would take in some Corinthian students in California wishing to complete their studies. But the company said its efforts were stymied "largely as a result of federal and state regulators seeking to impose financial penalties and conditions on buyers and teach-out partners."

Kamala Harris, California's attorney general, has a pending lawsuit against the company alleging it misled students and investors about its job placement rates. The state of California in 2007 settled a previous investigation into Corinthian after amassing evidence that the company allegedly inflated its job placement rates.

Several state attorneys general and the federal Consumer Financial Protection Bureau have sued the company, alleging it lied to potential students. The Education Department meanwhile allowed the company's schools to continue enrolling students and tap taxpayer funds for its bottom line.

Mitchell said Sunday that the Education Department would send its staff "to as many campuses as possible to talk directly with students." The department was in discussions with state community college systems to ensure that Corinthian students could continue their studies, he added, while some students could be eligible for debt forgiveness.

The for-profit college industry has been in consumer advocates' crosshairs for years. Though students at for-profit schools constitute only 13 percent of total enrollment at higher education institutions, they represent nearly half of all loan defaults, according to the Education Department. The Obama administration has been trying to rein in for-profit schools and limit dodgy schools' access to federal financial aid.

Corinthian Colleges spawned a growing movement of so-called "debt strikers" who are refusing to make payments on their federal student loans in protest against the Education Department's treatment of the company and its current and former students. A group of roughly 100 former Corinthian students that calls itself the "Corinthian 100" has been publicly pressuring the department to cancel all debts owed by current and former Corinthian students because of the company's alleged deception related to its job placement and graduation rates.

"We have kept students at the heart of every decision we have made about Corinthian," Mitchell said last month.

Rep. Maxine Waters (D-Calif.) in March endorsed the debt strike. The former Corinthian students "have decided that this is predatory lending and they're not going to repay their debts," said Waters, the top Democrat on the House Financial Services Committee.

Duncan has said his department is considering their request. Full debt forgiveness for all current and former Corinthian students would likely cost the Education Department billions of dollars, especially because it's unlikely the department could get the company to cover losses from forgone federal student loan payments.

The federal student loan program has generated tens of billions of dollars in profit in recent years, thanks to the spread between high interest rates paid by student loan borrowers and the relatively low rates paid by the government in financing its annual budget deficits. The Congressional Budget Office forecasts that the program will continue to generate billions in annual profits in the coming decade.

Last month, the Education Department accused Corinthian's Heald campuses of misleading students and accreditation agencies about its graduates’ employment rates. The company showed a “blatant disregard” for the federal student loan program after the department said it found 947 false job placement rates dating back to at least 2010.

The Education Department levied a $29.7 million fine, a ban on enrolling new students, and a requirement that Heald prepare plans for its thousands of students to either graduate or transfer to a new school.

The department has yet to announce the results of its broader investigation into allegations the company's other schools lied about its job placement rates.


Monday, April 27, 2015

Why This VC Says We're Not In Another Dot-Com Bubble

The Nasdaq hit at a 15-year high on Thursday, fueling fresh speculation that the stock market is experiencing another dot-com bubble like the one of the 1990s that could burst at any time.

Not so, says venture capitalist Tony Tjan.

“You’re definitely in a very significant boom period,” the bespectacled managing director of the Boston-based VC firm Cue Ball Capital told The Huffington Post on Thursday. “But you’re not in a bubble.”

To be sure, Tjan has skin in the game. Cue Ball Capital's portfolio is filled with tech companies, including the commenting service Livefyre, legal data firm Lex Machina and the real estate analytics site SmartZip.

It is tempting for financial pundits to compare today’s market to that of 2000, when the dot-com bubble burst, sending stock prices plummeting and closing down some prominent early Internet companies, such as pet supply site Pets.com, web hosting service GeoCities and plaything retailer eToys.com

Back then, the ratio of a companies' stock price to earnings soared on sheer speculation that growth would continue -- but investors ignored P/E ratio as a usual metric of a company’s financial health.

“It’s high, but it’s a fraction of what that [was],” Tjan said of ratios today.

When it came to initial public offerings back in 2000, Wall Street was so confident in the future success of unproven companies, that 80 percent of firms that went public in 2000 didn’t even turn profits, according to CNN Money. There are companies with frothy valuations, but fewer and fewer are going public. To the extent that there is a new tech boom, it's among private companies, not those listed on the Nasdaq.

Today, the global market has more than 20 so-called “unicorns” -- venture capital-backed companies valued at over $1 billion -- including Uber, Chinese cellphone maker Xiaomi and the ephemeral messaging app Snapchat, according to Cue Ball. But none of these has gone public. And the rate of IPOs is far lower. In 2000, 446 companies went public, compared to 275 last year. So far this year, 45 companies have gone public, according to the market research firm Renaissance Capital.

Eventually, some of these companies will likely see their values drop as a natural part of the market correction, Tjan said.

“There are ones that will be significantly corrected or go out of business,” he said. “But I don’t think it’s nearly the same.”

Perhaps the biggest difference between 2000 and now is that most companies today build business models off actual necessities, not just “bets on novelty,” Tjan said.

“Back then, you’d have companies trying to do everything as crazy as sell 99-cent pet food in a $20 FedEx box and think that was a good business,” he said with a laugh. “You have a greater rationality and maturation of the business models, and a greater understanding of what’s going on.”


Friday, April 24, 2015

Comcast Calls Off Time Warner Cable Merger

Comcast has scrapped plans to merge with Time Warner Cable in a $45.2 billion deal that would have combined the country’s two largest cable and broadband providers, according to a Bloomberg report Thursday.

The move comes a day after the Federal Communication Commission said it planned to oppose the deal, joining lawyers from the Justice Department who felt it would not help consumers. The FCC said it would issue a “hearing designation order” that would prolong the deal, making it more difficult and expensive for Comcast.

Comcast spokeswoman Sena Fitzmaurice and Time Warner Cable spokesman Bobby Amirshahi both declined to comment. But Bloomberg reported that a formal announcement of the terminated deal would come by Friday.

The merger faced vehement opposition from many who claimed such a deal would stifle competition by creating a monopolistic beast. As it is, Americans have limited options compared to other developed countries for buying cable or Internet. A combined Comcast and Time Warner Cable would have represented 54 percent of the entire U.S. market.

The reportedly dead merger marks a second failure for Comcast in just the past year. The Philadelphia-based behemoth suffered a loss when the FCC adopted open Internet rules that enshrine net neutrality -- the idea that broadband providers “cannot block, throttle, or create special ‘fast lanes’” for any Internet content.

This story has been updated. Simon McCormack contributed reporting.


Thursday, April 23, 2015

Upcoming BMW Lets You Stand Outside Car While Parking It

There may soon be a solution to the woes of parallel parkers everywhere.

The forthcoming BMW’s 7 Series will maneuver into parking spots without a driver sitting in the car. The drivers navigates the control from outside the vehicle by using a new key fob, which combines a remote control and an LCD screen and can guide the car in and out of tight spots and garages.

According to Gizmodo, the car's official design hasn't been unveiled yet. No word yet on when the 7 Series will be released, either.

Check out the feature in action in this promotional video BMW released April 18:

Mercedes-Benz has a similar automated parking feature called "active parking assist," though the driver must remain in the car to operate the accelerator and brake pedal.

Though the 7 Series is not a true driverless car, it may pit BMW once more against Tesla, which announced recently that it would roll out self-driving software for its cars as early as this summer. The software update, which is for Model S sedans sold after last October, would free up drivers on long commutes on major highways. Tesla plans to equip forthcoming Model X sports utility vehicles with the autopilot feature, as well.

“We can basically go between San Francisco and Seattle without the driver doing anything,” Tesla CEO Elon Musk said of the feature.

BMW released its own mass-produced electric car, the i3, early last year. At around $45,000, it is significantly cheaper than Tesla’s Model S, which has a price tag of $70,000, and drives between 80 and 100 miles between charges. BMW previously tested a "remote valet parking assistant" app on the i3, allowing the vehicle to park itself and come back to pick up the driver. But the app would require detailed maps of every parking garage, casting doubt on its practicality.

Mercedes-Benz and Google have been testing their own driverless cars in recent months. The Mercedes-Benz F015 Luxury in Motion was teased at the Consumer Electronics Show last year, and popped up in San Francisco last month.

Google also patented external airbags and bumpers for its self-driving car just a few weeks ago. The design would protect pedestrians in the case of a collision, and signals an early effort to respond to ethical debates over automated control.


Wednesday, April 22, 2015

Apple Makes New Commitment To Fight Climate Change, But Has A Long Way To Go

Apple on Monday released its 2015 Environmental Responsibility Report, underscoring its commitment to lessening the environmental impact of its products and operations. "We don’t want to debate climate change. We want to stop it," the company stated in the report.

But Apple still has a long way to go when it comes to reducing its greenhouse gas emissions, cutting down on paper use and eliminating the amount of toxic substances in its devices.

The report said Apple's overall carbon footprint increased between 2013 and 2014, in part because the company is selling more products. It also noted that Apple is working to make products less carbon-intensive to manufacture and use.

The report went on to say that renewable resources power 100 percent of Apple's data centers, corporate offices and retail stores in the United States, as well as 87 percent of its global facilities. In addition, all of its U.S. data centers have been powered with 100 percent renewable energy since 2012.

Yet the report says that the energy used by Apple facilities in the 2014 fiscal year represented only 1 percent of the company's carbon footprint. By contrast, manufacturing accounted for a whopping 73 percent of the company’s 34.2 million metric tons of greenhouse gas emissions.

While the new report doesn't address the volume of paper products used for packaging, it does says that during the 2014 fiscal year, "over 80 percent of the paper and corrugated cardboard used in our iPhone, iPad, iPod, Mac, and Apple TV packaging came from certified sustainably managed forests, controlled wood sources, or recycled materials."

Last week, Apple announced it was purchasing 36,000 acres of forest -- 3,600 in North Carolina and 32,400 in Maine -- to supply paper for its packaging.

The new report also addresses toxic substances in electronics and Apple's efforts to reduce or eliminate these materials for the sake of the environment and human health. "Our goal is to make not just the best products in the world, but the best products for the world," the company wrote.

A 2014 BBC investigation showed allegedly poor working conditions and exhausted employees in undercover footage from a Chinese factory producing Apple products. Apple's previous reports on its suppliers show that "30 percent [of them] don't comply with the company's own safety standards and 18 percent fail to comply with standards on hazardous chemical exposure," according to Wired.

Apple's environmental efforts are led by Lisa Jackson, who joined the company in May 2013 after serving as administrator of the U.S. Environmental Protection Agency from 2009 to 2013. Her voice can be heard in the "Better Starts Here" video Apple released alongside the report. The ad touts plans to build a 40-megawatt solar farm in China to offset the electricity used by its offices and stores in that country.

"We're directing our innovation into conservation, to get to net zero," Jackson says in the video. “We are learning more and more about new places where we can be better, with renewable energy, hydropower and forest preservation. New ways in which we can leave the world better than we found it."

At last year's annual shareholder meeting Apple CEO Tim Cook told members of a think tank skeptical of manmade climate change that they should ditch Apple stock if they didn't agree with the company's environmental efforts.

Both Google and Microsoft also have made commitments to improving their sustainability and offsetting their operations with renewable energy.

Apple declined to comment for this story.


Tuesday, April 21, 2015

Why 'Sweatworking' Is The New Lunch Meeting

(Reuters) - Sweatworking, the growing practice of meeting clients for a walk, a run or a fitness class, is elbowing networking out of bars and restaurants and into boutique fitness studios.

A yoga, barre or spin class has become the new nine holes of golf, fitness experts said, chased by a post-workout smoothie rather than a three-martini lunch.

“Sweatworking was born out of a desire to connect with clients on a deeper level that wasn’t so sales-y,” said Sarah Siciliano, 32, an advertising executive who has been entertaining clients with workouts. “A lot of sales jobs revolve around drinking.”

Siciliano, who is based in New York City, considers taking her mostly female clients, who range in age from 22 to 52, to yoga, spinning, bootcamp and dance studios a great tool to develop relationships.

“People like to move along with the trends,” said Siciliano, who organizes her workout events.

“I do all the leg work but I exercise everyday anyway so for me it’s a win-win,” she said. “If you can knock out a client event and your workout at the same time, why not?”

Sweatworking began in the advertising world, but has spread to more traditionally conservative professions such as law and banking, according to Alexia Brue, co-founder of the wellness media company Well+Good.

“Now a lot of client entertaining in many industries has moved into boutique studios,” she said, “especially to those with workouts that aren’t super awkward, or super-sweaty to do with a client.”

Gabby Etrog Cohen, vice president of public relations and brand strategy at SoulCycle, a national chain of 39 indoor cycling studios, said in four years sweatworking has become a regular part of her business.

“We get a mixed bag, a lot of people in financing and advertising,” said Cohen. “We have groups that come in every week. One group comes every Thursday.”

Part of the appeal, she speculates, resides in the dim studio lights.

“There’s something about not wanting to sweat in front of clients,” she said. “We ride in the dark so there’s a sense of anonymity.”

For 45 minutes and $35 per class, the studio provides an alternative to the traditional four-hour round of golf.

Cohen said the rise of sweatworking marks the distance traveled from the chain-smoking, inebriated lifestyle of the 1960’s portrayed in the hit AMC series “Mad Men.”

“We’ve taken ‘Mad Men’ and turned it on its head,” she said.

(This version of the story corrects HBO to AMC in the second-to-last paragraph)


Monday, April 20, 2015

This Could Cripple The Comcast-Time Warner Cable Merger

Customers and labor unions aren’t the only ones feeling uneasy about the looming prospect of a giant cable conglomerate.

Attorneys at the Justice Department’s antitrust division are making moves that may halt a merger between Comcast and Time Warner Cable, Bloomberg reported on Friday. The attorneys could submit their recommendation as early as next week.

The $45 billion merger, first announced last February, would unite the two largest cable operators in the country. The move triggered concern among regulators about how customers would be affected, and whether the combined force would have a heavier hand in cable network negotiations.

The new company would have 30 million subscribers.

Comcast and Time Warner Cable currently operate in separate markets: Comcast’s 22 million customers are centered around Chicago, Boston, Washington and Philadelphia, while those of Time Warner Cable, which number around 11 million, are located in New York, Los Angeles, Dallas and Milwaukee.

The antitrust lawyers’ submission will be reviewed by Renata Hesse, a deputy assistant attorney general for antitrust, who along with other officials may elect to file a federal lawsuit to stop the merger, according to Bloomberg.

Officials at the Justice Department and the FCC are not negotiating with Comcast about proposed solutions to the merger, according to Bloomberg.

"We’ve had no indication from the DOJ that this is true," Bobby Amirshahi, a spokesman for Time Warner Cable, told The Huffington Post of Bloomberg's report. "We have been working productively with both DOJ and FCC and believe that there is no basis for the DOJ to block the deal."

Comcast spokeswoman Sena Fitzmaurice said in a statement that there is "no basis for a lawsuit to block the transaction."

“The Comcast-Time Warner Cable transaction will result in significant consumer benefits - faster broadband speeds, access to a superior video experience, and more competition in business services resulting in billions of dollars of cost savings," Fitzmaurice said. "These benefits have been essentially unchallenged in the record - and all can be achieved without any reduction of competition."

Justice Department spokesman Peter Carr declined to comment.

Comcast delayed the merger closing date to mid-2015 after the Federal Communications Commission, which will review the proposed merger with the antitrust division, requested additional information about the confidentiality of contracts between Comcast and other subscription TV providers. The initial date had been early 2015.

This isn’t the first time Comcast has sought to expand its cable and Internet reach. The company fully acquired NBCUniversal in 2013.

In December, several companies, advocacy groups and labor unions formed the Stop Mega Comcast Coalition in an attempt to pressure officials to block the merger. The group, which counts Dish Network, the Writers Guild of America, West and the Sports Fan Coalition among its members, said the merger may result in Comcast increasing broadband prices and reducing programming options.


Friday, April 17, 2015

6 Of The Fastest-Growing Jobs In America Pay Low Wages

Retailers and policymakers are finally hearing workers’ call for wage hikes, but it may be a little too late.

Low-wage industries in the United States are growing rapidly, but wages aren't. A new report from the National Employment Law Project, a wage advocacy group, found that six of the occupations that are expected to grow the fastest in the coming years are also jobs that pay a median wage of under $15 per hour -- which is barely enough to make ends meet.

These high-growth fields, according to the NELP report, include retail sales employees, food and service workers, nursing assistants, laborers and freight movers, personal care aids, janitors and cleaners (excluding housekeepers and maids).

“These are jobs that aren’t going anywhere,” said Irene Tung, one of the report’s co-authors along with Paul Sonn and Yannet Lathrop. “You can’t outsource fast food in China. You have to grapple with that. This is where we have to lift wages if we want to begin to rebuild the disappearing middle class in the country.”

Around 46 percent of workers earning less than $15 an hour are over 35 years old, the NELP's report found. “There’s a common perception that these occupations are for teenagers,” Tung told The Huffington Post. “But there are a lot of people spending decades in these jobs and supporting families. It calls into question the kind of economy we want.”

As the baby-boom generation ages, one of the biggest-growing sectors is personal care for the elderly. Wages there are stagnant and turnover is high. “It’s hard to retain good personal care aides because the wages are so low,” Tung said.

The report also notes that the percentages of women and African-Americans making less than $15 per hour are disproportionately large. Female workers make up 48 percent of the total U.S. workforce but represent 54 percent of those making under $15 an hour, per the NELP. African-Americans, who comprise 12 percent of the total workforce, represent 15 percent of those making less than $15.

Workers have become increasingly vocal in their fight for better wages, and they're gradually effecting change. McDonald’s bumped up hourly wages to $9.90 earlier this month, though this applied only to a fraction of employees.

Many workers called the raise insufficient and are continuing to call on McDonald's and other corporate giants to hike wages. On Wednesday, a strike organized by the group Fight for $15, which advocates for a minimum hourly wage of $15 for fast-food employees, began in cities across the U.S and expanded to include demonstrations for other low-earning workers.

In February, retail giant Walmart increased wages to $9 for its lowest-paid workers. Rivals such as T.J. Maxx, Marshalls and Target soon followed suit. But many of these low-income workers rely on government assistance programs, and $9 an hour still forces them to remain tied to Medicaid and food stamps, according to a study by the advocacy group Americans for Tax Fairness.

“Workers have been organizing, and they’ve been able to elevate the conversation about wages in this country,” Tung said. “But it’s still a drop in the bucket. Nine dollars an hour is less than $25,000 a year for full-time workers, and that’s nowhere near enough for them to survive.”

The public is responding in turn and putting pressure on lawmakers. Seattle is currently transitioning to a $15 minimum wage, a year after the city first announced its commitment to a living wage for workers. Voters in San Francisco, as well as Alaska, Arkansas, Nebraska and South Dakota, approved wage increases last year.


Thursday, April 16, 2015

Protesters Take Part In Nationwide Rally For $15 Minimum Wage

Tens of thousands of protesters gathered across the country on Wednesday to speak out against low wages.

The demonstrations are led by the group Fight for $15, which seeks a minimum hourly wage of $15 for fast-food employees. Though McDonald's raised hourly wages to $9.90 for a fraction of its workforce earlier this month, workers say this is hardly enough and are demanding a basic living wage.

The movement has also grown to include protests for higher pay for adjunct professors, airport workers and employees at large retailers. Marches began Tuesday in Boston and Detroit, and soon expanded to more than 200 cities and college campuses on Wednesday.

Fast-food protests in over 100 cities last September resulted in dozens of arrests. This time, however, organizers are not looking to get arrested in order to make a statement.

"It's something different," says Kendall Fells, organizing director of Fight for $15, told USA Today. "This is much more of an economic and racial justice movement than the fast-food workers strikes of the past two years."

The Fight for $15 campaign first began in 2012 and is funded by the Service Employees International Union.

Protester rally outside a Burger King restaurant in College Park, Georgia, on Wednesday morning.

Protesters lead a demonstration in Miami Gardens, Florida.

The movement has also gained international support, with workers leading protests in Auckland, New Zealand, and Amsterdam, Netherlands.


Wednesday, April 15, 2015

CEO Slashes $1 Million Salary To Give Lowest-Paid Workers A Raise

Three weeks ago, Dan Price took a $930,000 pay cut.

Growing income inequality had been on his mind for months. But as he went for a hike with a friend one afternoon and listened to her describe her struggle with rising rent prices, he realized he had to do something for his own employees.

So Price, the founder and CEO of Gravity Payments in Seattle, decided to raise the minimum salary at his 120-person payment processing company to $70,000. At a company where the average pay was $48,000 per year, the move -- which was first reported by The New York Times on Monday -- affected 70 workers, 30 of whom saw their salaries double.

Most of the money for these raises will come from cutting Price's salary -- which is now $70,000 per year rather $1 million. The rest will come out of the $2.2 million the company expects to earn in profit this year.

“There’s greater inequality today than there’s been since the Great Recession,” Price told The Huffington Post on Tuesday. “I’d been thinking about this stuff and just thought, ‘It’s time. I can’t go another day without doing something about this.’”

The $70,000 figure is just below the $75,000 salary pegged in a 2010 Princeton University study as an ideal benchmark for achieving happiness. About 28 percent of Americans said they would feel successful earning at most $70,000 per year, according to a 2012 survey from the jobs site CareerBuilder.

The pay cut won’t affect Price's lifestyle much. He has saved a lot of the money he has earned since starting Gravity in 2004. He said he has no plans to replace his 12-year-old Audi, which has clocked more than 140,000 miles. And his new salary will still allow him to pick up the bar tab for his friends once a month, he said.

“There will be sacrifices,” said Price, 30. “But once the company’s profit is back to the $2.2 million level, my pay will go back. So that’s good motivation.”

In the U.S., the average CEO earns more than 350 times what the average worker does. Seattle has become a hotbed in the fight for higher wages as the city phases in a $15 minimum wage, one of the highest in the country. The city is also home to wealthy investor Nick Hanauer, a self-styled champion for higher pay who has warned his fellow billionaires that pitchfork-wielding mobs will follow them to their private jets if income inequality isn’t addressed.

Rather than see this as a charitable offer to his workers, Price sees the pay raises as an investment. In theory, workers motivated by higher salaries will ultimately attract more business and handle clients better.

“This is a capitalist solution to a social problem,” Price said. “I think it pays for itself, I really do.”


Tuesday, April 14, 2015

Uninsured Rate Gets Lower And Lower, Thanks To Obamacare

WASHINGTON-- The Affordable Care Act was designed to slash the percentage of Americans who lack health insurance, and it's working.

The uninsured rate fell to 11.9 percent during the first quarter of this year, 1 percentage point below the rate at the close of 2014, according to the findings of a Gallup-Healthways Well-Being Index poll published Monday. The decline coincides with the start of benefits for new Obamacare enrollees at the beginning of 2015.

The latest uninsured figure from the Gallup survey is the lowest since the polling firm began tracking the number in 2008, and contributes to a remarkable decline of 5.2 percentage points in the share of people without health coverage since the end of 2013, just before the first wave of Obamacare health insurance enrollees joined the ranks of the insured.


Source: Gallup

African-Americans, Hispanics and people with low incomes saw the greatest gains in insurance coverage, Gallup found.

Some of the increase in the proportion of Americans with health coverage likely is related to the improving job market, and the health benefits provided by employers, Gallup notes. But the pollsters conclude that Obamacare is mostly responsible for the current trend because the uninsured rate is lower than it was in early 2008, when the economy was in recession.

About 12 million people are covered by private health insurance obtained via the exchanges, according to the Department of Health and Human Services. A separate analysis published by the department last month estimates that 16 million fewer Americans are uninsured because of the Obamacare coverage expansion, including the exchanges and Medicaid.

Were more states to expand Medicaid under Obamacare, the uninsured rate would fall more sharply, as it did in Indiana earlier this year. Previous surveys showing state-by-state numbers illustrate that Obamacare's effect on the uninsured is diminished by states' refusal to expand Medicaid.

Although Montana appears poised to adopt the Medicaid expansion this month, efforts in states such as Alaska, Missouri, Tennessee and Utah this year have been stymied by Republican opposition. Almost 5.5 million people had enrolled into Medicaid because they qualified under the expansion in 28 states and the District of Columbia, the Department of Health and Human Services reported Friday.

The sharp reduction in the uninsured rate since Obamacare benefits began to take effect last year could soon be undone, however. The Supreme Court is slated to rule in June ona lawsuit, King v. Burwell, that claims the Affordable Care Act's subsidies can only be provided in 13 states and the District of Columbia, which operate their own health insurance exchange marketplaces, not in the federally run exchanges in the rest of the country.

A high court ruling for the plaintiffs would invalidate the subsidies received by more than 85 percent of exchange enrollees and destabilize the insurance markets in states with federal exchanges. The Rand Corp. estimates this would result in 9.6 million people becoming uninsured.


Monday, April 13, 2015

The Future Of Driving May Be Electric Golf Carts

Tesla Motors' next vehicle will be an SUV, but the company may want to invest in something more like a golf cart.

An essay in the forthcoming May issue of Harvard Business Review upends the theory that the Palo Alto, California-based electric automaker has disrupted the car industry. Rather, golf-cart-like neighborhood electric vehicles, or NEVs, may represent the future of four-wheeled travel, it says.

An all-electric Polaris NEV.

Where Tesla's cars are expensive, going for upward of $100,000, NEVs sell for as little as $8,000. The auto industry proved to be resilient to disruption, as Tesla's competitors, including BMW, Mercedes-Benz and General Motors, have begun to aggressively compete with their electric cars. Whereas Tesla created a luxury vehicle that mimics the experience of a gas-fueled car, NEVs serve a different purpose altogether -- providing cheap local transportation. And as personal car ownership declines, NEVs appear to be a viable option for future pay-per-ride services that would rely on fleets of personal electric cars to shuttle passengers around cities.

That isn't to say Tesla doesn't play a crucial part in pushing the auto industry toward all-electric and self-driving vehicles. But as more people use ride-sharing services instead of buying cars, NEVs are positioned to dominate the auto industry.

"Personal transportation will be a combination of Uber and autonomous vehicles," Karl Brauer, senior analyst at the automotive research firm Kelley Blue Book, told The Huffington Post on Thursday. "Ultimately, small electric cars will be the primary form of transportation in urban areas."

Earlier this week, Morgan Stanley auto analyst Adam Jonas published a chart that outlined the future of driving. Though he provided no timeline for the evolution, he predicted that huge fleets of electric, autonomous vehicles will eventually become the norm, replacing the need for personal car ownership.

Essentially, whenever you need a ride, you'll summon a robotic vehicle -- much in the way people hail a Lyft or Uber driver through a phone app -- and it will transport you from place to place. It may even make other forms of public transportation, such as subways, obsolete.

NEVs are perfect for the job, Brauer said.

All arrows lead to quadrant four, where no one owns cars. They just summon them from a publicly or privately owned mega fleet.

It makes sense. As it is, the average person uses his car for only one hour a day, according to a still-widely cited 1995 statistic from the U.S. Department of Transportation. And driving by U.S. household fell nearly 10 percent between 2004 and 2014, marking the first major shift in car ownership since World War II.

"Whenever I need a car it'd be there for me and do what I need it to do, but when I didn't need it, it wouldn't cost me anything or take up any of my space. That sounds great," Brauer said. "And I'm a car guy."

Big carmakers have yet to start making NEVs. Polaris Industries, known for its all-terrain vehicles and snowmobiles, has emerged as a leading manufacturer.

Tesla declined to comment for this story.

For now, NEVs are largely limited to enclosed areas, such as college campuses or factories. Most cannot go faster than 35 miles per hour and are therefore barred from using many roads. But, with time, they may replace personal cars.

"It's not going to happen overnight," John O'Dell, senior editor at the car-shopping site Edmunds.com, told HuffPost. "But it will probably be a thing that happens, especially in urban areas."


Friday, April 10, 2015

Why Walking Meetings Can Be Better Than Sitting Meetings

Walking meetings are a kind of a big deal at LinkedIn. On any given day you can find workers strolling and talking together on the bike path at the company’s Mountain View, California, headquarters. The path takes about 20-25 minutes to circle -- perfect for a half-hour one-on-one with a colleague.

The walk and talks have obvious benefits. Desk-bound office workers can all use a bit more exercise. Sitting too much is killing us. Yet the walking meeting’s upsides go far beyond the physical. Walking helps break down formalities, relaxes inhibitions and fosters camaraderie between colleagues -- and less eye contact can fuel more personal conversation. Meeting on the go also minimizes distractions -- no phones, no email, no texts, no colleagues interrupting you.

Perhaps most intriguing, walking leads to more creative thinking, according to a recent study from researchers at Stanford University.

With sit-downs indoors, you face each other across a table. “You feel like you’re at the principal’s office,” Igor Perisic, LinkedIn’s vice president of engineering told The Huffington Post. “That’s not what you want.”

Perisic recounted a time when he and a colleague were trying to solve an issue with LinkedIn’s search function. They spent hours in a room with a white board trying to work it out. Still he felt that he was missing something.

“So we went out on a walk and talked about it,” Perisic said. When they got back indoors, they had the solution. “And it seemed like the obvious choice.”

You can find many big-shot fans of the walk and talk -- including Facebook chief Mark Zuckerberg, Twitter co-founder Jack Dorsey and this guy named Barack Obama. There’s even a TED Talk devoted solely to the topic.

Obama (left) is reportedly a big fan of the walking meeting.

We all intuitively understand that it's nice to get some fresh air outside, but new research shines a light on why walking could be especially good in a work environment.

When we walk we let our guard down, said Marily Oppezzo, who researched walking and creativity, along with her professor Daniel Schwartz, when she was a doctoral student at Stanford’s Graduate School of Education. Their paper was published online last year in the Journal of Experimental Psychology: Learning, Memory, and Cognition.

“Walking releases your filter,” said Oppezzo, now a post-doc at Stanford’s School of Medicine. Ideas you hold back in a conference room come spilling out when you’re moving.

To gauge walking’s effect on creativity, Schwartz and Oppezzo had test subjects walk and sit, and then asked them to find alternate uses for everyday items like tires or buttons. One person suggested using a button as a doorknob for a dollhouse, a tiny strainer, something to drop behind you to keep your path, for example.

They found that people who walked were able to come up with more unique ideas, both while they were walking and immediately afterward. And, it didn’t matter much if they walked on a treadmill or outside.

“Walking opens up the free flow of ideas,” they write in their paper.

This doesn’t mean you should convert all your conference rooms into gyms. Sometimes you’re going to need to sit down.

The Stanford researchers found that sitting is the better option when you have to solve a problem for which there is only one right answer. For example, they asked test subjects to come up with a single word that combines with the words “cottage, Swiss, and cake.” The sitters were better able to figure out the answer: cheese.

LinkedIn’s Perisic said that sometimes he needs to be near a whiteboard to work on a project. For difficult conversations -- say, letting someone know their performance isn’t measuring up -- he likes to talk in a more formal setting. “It’s tough to have the conversation outside.”

Mark Zuckerberg (left) and Jeff Weiner are both big fans of the walk and talk.

Still, Perisic, who oversees about 220 people, can often be found walking with someone on his team. And his CEO, Jeff Weiner, has been positively evangelical on the subject.

“It's energizing to get outside for a 30 minute walk a few times a day,” he said in a recent interview published on LinkedIn. “[It] just changes the whole state of things.”

Other Silicon Valley companies get the whole walking thing, too. Facebook just put in a half-mile loop on the roof of its new headquarters in Menlo Park, California, and workers there do a lot of walking meetings.

LinkedIn’s walking tradition was born more out of necessity than a careful review of research. During the firm’s early days, when it was growing quickly, it was really hard to book a conference room, Weiner told Bloomberg recently. “We had a lot of people and not enough space.”

A colleague suggested walking meetings as a fix -- solve the space issue and get some exercise. “It was very practical,” Weiner said.

The company's expanded since then, and it now has more space. But no one’s going back inside.


Thursday, April 9, 2015

The Future Of Driving, In One Provocative Chart

In the future, only rich people will own cars and only robots will drive them.

That’s the takeaway from a new research note from Morgan Stanley auto analyst Adam Jonas. Like Tesla Motors CEO Elon Musk, he predicts that improvements in self-driving technology will eventually lead to bans on human driving on most roads.

Ride-hailing services such as Uber and Lyft, which have already been widely adopted in major urban centers, have paved the way for cities, and eventually suburbs, to adopt mega-fleets of public vehicles that will taxi passengers around. This will dramatically lower the cost per ride to about 25 cents per mile, which is roughly one-tenth of what a traditional taxi costs, Jonas said. He provides no clear timeline for when this might occur.

By contrast, wealthy people -- at least in the near-term -- will own self-driving vehicles, a fact on which Mercedes-Benz and Tesla seem to be banking.

Again, Jonas provides no clear timeline. But an increasing number of luxury carmakers are already adding autonomous features to their vehicles. In October, Tesla's Musk estimated that fully driverless cars will be on the road by 2023.

Here’s how the chart breaks down:

  • Quadrant 1: Today, most drivers own or lease their own vehicles, which they drive themselves. Autonomous driving technology is only beginning to emerge.
  • Quadrant 2: Over the past few years, ride-hailing services such as Uber, Lyft and Sidecar have alleviated the need to own a car in many major cities, making a driver much more accessible. Jonas said this is a logical step toward the so-called mega-fleets of public, autonomous cars.
  • Quadrant 3: Over the next decade, rich people will likely swap out the cars they drive for cars that drive themselves. Already, Tesla is planning to roll out a version of its Model S sedan that has limited autopilot features sometime this summer. The latest version of the car, announced on Wednesday, starts at $67,500 after a Federal Tax Credit.
  • Quadrant 4: This is the final evolution in the car industry and there is no clear date for when this will come to fruition. But with few exceptions, most people will be driven by cars that are either a public utility or part of a privately-owned fleet that users subscribe to use. At this point, laws will likely restrict human driving to select roads, Jonas wrote. Other forms of public transportation, such as subway systems, may become obsolete.

Wednesday, April 8, 2015

The CEO Who Took On Indiana's Anti-LGBT Law -- And Won

For Marc Benioff, the fight against Indiana's widely criticized "religious freedom" law was personal.

The Salesforce CEO was a leading voice in the national outcry against Indiana's Religious Freedom Restoration Act, which Gov. Mike Pence (R) signed last month. Critics argued that the original version of the RFRA would have permitted businesses to discriminate against LGBT people.

Benioff said his advocacy was an effort to help his employees and customers whom the law might have affected, something he describes as being key to his personal philosophy.

“I’m all for a healthy mind and a healthy body, but I’m also about having a healthy planet and a healthy country and taking care of others that don’t have as much,” Benioff, a habitual meditator, told The Huffington Post on Monday from his vacation home in Hawaii. “That’s my spirituality.”

On March 25, a day before Pence first signed Indiana's RFRA, Benioff became the first major business leader to speak out against the law by threatening to scale back his company's investment in the state. After the governor approved the measure, Benioff swung back even harder, posting what he called the "tweet heard 'round the world," in which he announced plans to cancel all Salesforce programs that would require customers or employees to travel to Indiana. Indeed, it was retweeted nearly 9,800 times and favorited more than 8,300 times and became part part of the national conversation.

The following week, he stepped up his campaign again, promising relocation packages to Salesforce employees in Indiana who wanted to transfer elsewhere.

“CEOs are very much the advocates of their customers and employees, as well as of the environment and local communities,” Benioff said. “The most successful CEOs today are advocates for their stakeholders, not just their shareholders.”

After a week of backlash, Pence approved a revised version of the measure, this time explicitly banning businesses from refusing service because of a person's sexual orientation or gender identity.

Benioff may have been the first major CEO to express his opposition to the legislation, but he was soon joined by others. Corporate giants and organizations from Apple to NASCAR rallied behind LGBT rights groups in Indiana to fight the law.

Still, the Salesforce chief may have been uniquely positioned to champion the cause in Indiana. For starters, San Francisco-based Salesforce became the state's largest tech employer when it acquired the marketing software firm ExactTarget in 2013.

And, Benioff has a lot of powerful friends.

The day after the law passed, he said, he emailed the people he regularly meets and dines with in San Francisco, many of whom are top tech industry executives. Among them was Max Levchin, one of the co-founders of PayPal and the chief executive of financial management site Affirm. Four days after Benioff sent the email, when he flicked on CNBC as he started his morning workout at the gym, he saw Levchin railing against Indiana’s law.

“I was completely blown away,” Benioff said, noting that Levchin went on to organize more than 70 top executives to sign a joint statement condemning the law last week. “This is really the first time that we have started something, and the reason it got started -- the reason it was successful -- is because it was so many different CEOs banding together.”

Benioff has long practiced the "stakeholder theory," a philosophy advocated by World Economic Forum founder and chairman Klaus Schwab, among others. The ideology views shareholders as second to employees, customers, suppliers, communities, trade unions and others who are affected by a company’s commerce. Imbued with a strong sense of corporate responsibility and connected with its community, a firm that's guided by these principles might, the philosophy suggests, earn greater profits over time, translating into higher returns for investors. It’s the corporate equivalent of building good karma.

In the two weeks since Benioff began his campaign, emails have poured in from workers thanking him for stepping up. He said he's never received so much positive employee feedback in his 16-year tenure at Salesforce.

“When the economic hammer came down, that’s when things really started to change,” he said. “There’s one word that was continually used by everyone in Indiana, which was ‘historic.’ That’s something that we in San Francisco, or those of us who don’t live in Indiana, don’t have the perspective to understand, but for them this was historic.”

Benioff pledged to continue the fight by urging the Indiana legislature to add the LGBT community as a protected class under local civil rights laws in its next session.

“The conversation happened the right way,” he said. “It opens the door for another change and another change, probably in the next legislature.”

The CEO admits that not every step in this push to change the law has been graceful. He became the target of some criticism after a CNN interview last Wednesday, in which he said, "One thing that you're seeing is that there is a third [political] party emerging in this country, which is the party of CEOs." The comment provoked pushback from those who already fear the influx of money in politics. Benioff said he misspoke as a result of his excitement over the business community’s rapid response to the situation in Indiana.

Benioff hopes business leaders can continue to push for important legislation that affects their stakeholders, and cites patent and immigration reform as specific examples.

Asked whether Indiana just happened to provide the right place and time for business leaders to unite behind a particular political cause, or whether the momentum would continue to grow, Benioff said he was unsure.

"This was so spontaneous, it happened so quickly," he said. "But CEOs do have a lot of power, like it or not, so they need to bring on a stakeholder philosophy."


Tuesday, April 7, 2015

Reddit Hopes Ending Salary Negotiations Will Help Women

Ellen Pao is still fighting.

Just weeks after losing a courtroom battle that highlighted tech's glaring gender problems, Pao is trying to solve some of them closer to home: at Reddit, where she is interim CEO.

In an effort to promote gender diversity, Reddit is no longer negotiating salaries with potential hires, Pao told The Wall Street Journal. It was her first interview since losing a gender-discrimination lawsuit against the venture-capital firm Kleiner Perkins Caufield & Byers last month.

“Men negotiate harder than women do, and sometimes women get penalized when they do negotiate. So as part of our recruiting process we don’t negotiate with candidates,” Pao told the WSJ. “We come up with an offer that we think is fair. If you want more equity, we’ll let you swap a little bit of your cash salary for equity, but we aren’t going to reward people who are better negotiators with more compensation."

More broadly, Reddit is trying to build a team that values diversity, and it's working with diversity expert Freada Kapor Klein to find other ways to create an inclusive environment, Pao told the WSJ.

"We ask people what they think about diversity, and we did weed people out because of that,” she said.

Numerous studies suggest a disparity between men and women who haggle with employers about pay. Not only are men typically more likely to negotiate salaries than women, women are also penalized more than men when they do negotiate.

And when the conversation does turn to money, women are more likely to be judged for their social skills than for their competence, an issue that men rarely face.

Still, it remains to be seen how Pao’s mandate will work in practice.

“If you’ve got a talented female who has another offer from a competitor, are you really going to expect that they’ll take a big salary hit to come to your firm?” asked Malia Mason, a professor at Columbia Business School.

Pao sued Kleiner in 2012, alleging that it discriminated against her because of her gender and later retaliated by firing her. A jury voted in Kleiner's favor on March 27, after a four-week trial, which delved deeply into Pao’s personal life and ultimately focused on her performance at work.

But the lawsuit against Kleiner, which was an early investor in Amazon and Google, renewed scrutiny on the overwhelming gender disparity in tech. Few women hold leadership roles at tech companies, and reports of sexual harassment and misogynistic behavior have plagued Silicon Valley for years.

Pao said she got messages of support from other women throughout the trial. One group of women in the tech industry, led by Lori Hobson, took out a full-page ad in the Palo Alto Daily Post that read, “Thanks Ellen.”

“If I have helped to level the playing field for women and minorities in venture capital, then the battle was worth it,” Pao said after the trial.


Monday, April 6, 2015

Working Parents Should Be Very Happy About This Obscure Senate Vote

Something pretty remarkable happened late last month while the Senate was voting on the annual budget resolution. And it had very little to do with the budget.

On March 26, while individual senators were introducing amendments as part of a process known as “vote-a-rama,” Patty Murray (D-Wash.) offered up what she called a "paid sick day" proposal. Her idea is to guarantee that all Americans can take up to seven days off from work a year, with pay, in order to get better from an illness or to take care of a sick family member.

Labor unions and women’s groups love the idea. The business community pretty much detests it. That opposition helps explain why the idea has never gotten much traction in Congress, even though it's been kicked around for a long time.

Murray has taken up the leadership on the issue in the Senate, now that its previous champion, Tom Harkin (D-Iowa), has retired. But as Murray’s aides and allies tell it, the senator did not spend a lot of time trying to rally supporters or persuade wavering colleagues on this particular vote. She figured that most of her fellow Democrats would vote yes. She hoped that a handful of Republicans might do the same, so that she could claim majority support for the concept -- 51 votes, or maybe one or two more if she was really lucky.

She ended up with 61.

“We weren’t expecting to get the level of support we got," a Murray aide told The Huffington Post.

Vicki Shabo, vice president of the National Partnership for Women and Families, agreed. “There was not a big lobbying effort around this amendment,” she said. “The vote was a surprise -- but a very positive surprise.”

The breakdown of the vote was particularly interesting. In all, 14 Republicans voted to support the amendment. Conspicuous on the “ayes” list were Kelly Ayotte from New Hampshire, Mark Kirk from Illinois, Rob Portman from Ohio and several other incumbents up for reelection in states that have voted Democratic or have been up for grabs in the last two presidential elections. In fact, two such Republicans, Pat Toomey from Pennsylvania and Ron Johnson from Wisconsin, switched their votes at the last minute to join the majority.

One possible reason for the strong showing: Murray refused requests to consider the amendment on a voice vote only, according to sources familiar with what happened behind the scenes. Murray pushed for a roll call, which meant votes would be recorded -- and possible fodder in the 2016 elections. Any Republican who voted against the amendment would have to explain that vote to constituents.

This doesn’t mean paid sick leave is about to become law. The budget resolution isn’t binding legislation. It’s merely a set of instructions to congressional committees as they set out to write legislation. Amendments like Murray’s are typically vague and largely symbolic -- designed to demonstrate support for a particular idea, force adversaries to make unpopular votes, or some combination of the two.

After the vote, aides to some Republicans who voted for the bill assured reporters that their bosses were merely expressing support for the idea of paid sick leave, not any specific legislation that Murray and her allies had in mind.

But the prospect of voting against paid sick leave in the abstract obviously spooked a bunch of vulnerable Senate Republicans. That may say something about the level of political support, not just for paid sick days but also for what’s come to be known as the “working families” agenda -- an agenda that’s likely to figure prominently in the 2016 presidential campaign.

A Revolution In Family Life, Not Yet In Policy

The agenda is a reaction to a profound sociological shift in family life that’s been underway for decades.

In 1960, the majority of households with children had at least one parent at home, and the majority of women with children stayed out of the workforce. Today that’s no longer true, as more than 60 percent of households with children have no parents staying at home, and women make up nearly half the labor force. This has created new stresses and strains on families, particularly families with very young children.

These parents need time off from work, whether it's a few days to nurse a sick kid or a few months to care for a newborn. They need child care and, ideally, some kind of prekindergarten to prepare kids for school.

In pretty much every other developed country, government acts aggressively to meet these needs -- by subsidizing or directly providing early child care, for example, and by guaranteeing that parents can take time off, with pay, to care for newborns and sick relatives. That’s not the case here in the U.S., where the law requires very little, and such benefits are largely a function of whether employers offer them. That works out well enough for employees of large, generous corporations -- and not so well for everybody else.


Infographic by Alissa Scheller for The Huffington Post.

Predictably, the workers least likely to have such benefits tend to be in lower-paying industries, like fast food or retail, or those piecing together low-paying, part-time and contingent work. Paid sick days, the cause Murray is pushing, are a prime example of the kind of options these workers lack. Among people whose incomes place them into the highest quartile, 85 percent have paid sick days, according to the Economic Policy Institute. Among people in the lowest quartile, just 30 percent do.

And because responsibility for caregiving falls disproportionately to women, the inability to get paid days off or find affordable child care has forced them to make career choices -- like slowing their advancement or abandoning jobs altogether -- that reinforce gender inequality.

Efforts to bolster government programs and protections for working parents in this country have proceeded in fits and starts, thanks to a familiar set of obstacles. For one thing, initiatives typically require some combination of government regulation and spending. Those are tough to secure when either funds are scarce or Republicans, backed by corporate lobbies, have control over one branch of government -- conditions that have existed for most of the last few decades. It also hasn’t helped that, until very recently, large numbers of Americans were, at best, ambivalent about the role of women in the workplace.

The last time Congress passed a major piece of legislation with the sole purpose of helping workers balance work and family was in 1993, when the Democratic-controlled House and Senate passed the Family and Medical Leave Act, guaranteeing up to six weeks of leave for employees of large firms who needed time to care for a new baby or sick relative. It was historic legislation -- the very first bill that Bill Clinton signed as president.

Getting the law passed took a herculean political effort, spanning years, and the law has one big limitation: Because it requires companies to provide unpaid leave, not paid leave, many workers can’t afford to use it.



But political conditions change, and there are reasons to think the support for such policies may be stronger now. For one thing, the financial strain on families is greater, creating more demand for help. Child care costs may be the most vivid example. According to the Census Bureau, a working mother in 1985 could expect to pay, on average, $87 a week for child care. By 2011, that working mother could expect to pay $148 a week -- an increase of 70 percent. (Those numbers are adjusted for inflation.)

And relative to the 1980s, advocates for policies like paid leave and child care support are more likely to find lawmakers -- including men -- who understand firsthand the kind of pressure working parents face. That’s true of state legislatures and Congress and that’s true of the White House, where President Barack Obama has spoken frequently about the challenges he and Michelle faced when their kids were young and both of them had promising professional careers ahead of them.

One more factor that could help: Experts are compiling more evidence about the effect that programs like paid leave can have on businesses and the economy. Critics have long maintained that such policies would hurt employers and ultimately slow economic growth. The latest evidence suggests otherwise -- in part because such policies can improve retention and allow women, who increasingly have high skills, to stay in the workforce if they wish.

Success In The States, Struggles In Washington

Advocates for more generous child care and leave policies have already made some gains at the state and local level. Paid sick leave was on the ballot in four places last year -- three cities and one state, Massachusetts. It passed in all four. The process is taking longer at the federal level, but it's clearly underway. The White House has made work-family issues a major priority for Obama’s second term -- by issuing reports on the productivity lost when women can’t pursue career aspirations; by staging summits and other White House events on the needs of working families; and by proposing or endorsing major initiatives for universal prekindergarten, paid leave and tax credits to help parents with children.

On Capitol Hill, work-family issues have been a longtime cause for such veteran Democrats as House Minority Leader Nancy Pelosi and Rep. Rosa DeLauro from Connecticut. But particularly in the Senate, up-and-coming Democrats are staking their own claim to the agenda. Kirstin Gillibrand (D-N.Y.) has been waging a crusade on behalf of paid leave, and Bob Casey (D-Penn.) recently proposed a major new tax credit for families paying for child care.

“You don’t want to blow things out of proportion,” said Heather Boushey, executive director and chief economist at the Washington Center for Equitable Growth. “But I’ve been in D.C. since 2000 working on these issues, and it’s feeling avalanche-y. There’s a lot going on.”

The Democrats sponsoring these pieces of legislation are optimistic about the prospects for passing legislation, even with Republicans in charge of both houses of Congress. And maybe those statements aren’t quite as naive as they sound. After Obama unveiled his own version of a child care tax credit, Speaker John Boehner and Senate Majority Leader Mitch McConnell identified it as the one idea on the president’s agenda they could support.

But with Congress struggling to pass even routine legislation, and dollars for new programs in short supply, it will probably take the 2016 campaign to focus attention on these issues -- and, eventually, rally constituencies for passing laws.

Hillary Clinton, the Democrats’ likely nominee, seems poised to make this case. She has a long history of advocating for these sorts of programs, going back to the 1970s and her work with the Children’s Defense Fund. And while her demurral about paid family leave in a CNN interview last summer got lots of attention, advocates say they aren’t worried and expect a strong work-family agenda to be part of her campaign.

The big unknown is how Republicans will react -- and this is why, ultimately, the Murray vote may be more significant than the garden-variety budget measure. If the Murray vote proved anything, it’s that Republicans can read the same polls as Democrats. In a 2013 HuffPost/YouGov poll, 74 percent of respondents said they would support a requirement that all employers offer paid sick leave. Republicans recognize that voters crave stronger, more generous supports for working parents, or at least like the sound of them.

Of course, opposition to these measures remains strong. As Dave Weigel of Bloomberg pointed out, every Senate Republican also running for president voted no on Murray's amendment.

If the political pressure gets intense, the GOP could simply offer up a different agenda -- one that sounds similar to what Democrats are proposing, but actually accomplishes less. An example would be the “Working Family Flexibility Act,” which is a Republican proposal for making paid sick leave more widely available. The initiative would require that employees build up overtime hours in order to get paid leave -- and then give employers discretion over when employees can take it.

Some labor advocates consider the Republican proposal nothing more than an attempt to undermine guarantees of overtime pay, on which many low- and medium-income families rely.

Could such proposals be the basis for future compromise, if not in this Congress than in a subsequent one? Are they simply an attempt to deflect criticism from voters who want action on work-family issues? It’s difficult to know. But it’s unlikely Republicans can simply avoid these issues altogether. Democrats have taken notice of the success that Murray had. They’ll be back for more.

Dave Jamieson contributed reporting.


Friday, April 3, 2015

March's Weak Jobs Report Is More Evidence The Fed Should Be Careful

The March jobs report, released today by the Bureau of Labor Statistics, was not good. After months of very strong jobs reports, though, it was a specific kind of not good: not outright negative, and nowhere near apocalyptic, just confusingly bad.

As unclear as this month's jobs report was in terms of telling an obvious story about the U.S. economy, when it comes to raising interest rates, it will suit the Federal Reserve just fine. At its last meeting, the Fed tied its decisions on interest rates more closely to economic data, and yet also indicated it would be loathe to raise rates too early and snuff out economic growth. This jobs report lets it be true to both commitments.

The U.S. economy added 126,00 jobs in March, far less than the 247,000 economists, on average, had expected. What's worse, January and February job numbers were revised down by a total of 69,000, making this report even weaker. The unemployment rate was unchanged at 5.5 percent.

In the first few months of 2015, job growth seems to have slowed down from a breakneck pace in 2014. The job market has grown by a very solid 261,000 new jobs per month over the past six months, the New York Times' Neil Irwin noted. But, as Slate's Jordan Weissmann retorted, in the past three month's we've averaged just 197,000 new jobs per month.

It's still too early to say what these numbers are telling us. Has the U.S. job market finally turned the corner and left the disfigurement of the recession behind? Or is it still scarred and somewhat limping? It could be either.

Wages are also sending mixed signals. Wage growth has been remarkably and depressingly steady at a pace of about 2 percent per year for five years. It stayed remarkably and depressingly steady in March, rising 2.1 percent from a year ago.

But if you look at the past three months, annualized wage growth is an impressive 4 percent, the Peterson Institute's Justin Wolfers pointed out. And other indicators, like employer compensation costs and the number of companies that say they plan to give raises, seem to indicate wage growth is finally picking up.

So, amid all this "on the one hand, on the other hand" data, what is the Federal Reserve supposed to think about the health of the economy -- let alone the wisdom of raising interest rates, as it is widely expected to do at some point in the near future?

As University of Oregon professor Tim Duy pointed out in his excellent analysis of the Fed's most recent meeting, by removing the word "patient" from its description of how it thinks about interest-rate hikes, the Fed is saying it will let data dictate its decision. And the data from the jobs market, even before this bad jobs report, Duy noted, was saying "don't raise rates" anytime soon.

In other words, Duy says that Fed Chair Janet Yellen "[moved] the Fed both closer to and further from the first rate hike of this cycle." That's not as inscrutable as it sounds: The Fed's "closer" to the data, which could potentially improve quickly, and "further" because the data, as it is now, says don't raise rates.

And the March jobs report reinforces that stance: a data-dependent rate hike is still a ways off.


Thursday, April 2, 2015

Why Corporate America Is Finally Raising Wages

Some of the country’s biggest employers are finally raising wages amid mounting pressure from protesters and a hardier job market.

McDonald’s on Wednesday became the latest major company to give workers -- albeit a fraction of its total workforce -- a pay bump that will lift average hourly pay to $9.90 from $9.01. The move, which will go into effect on July 1, follows a similar change made in February by Walmart, the nation’s largest private employer.

What, after years of stagnant wage growth for low-paid workers, is causing corporations to shell out more to their staff?

For some companies, the pay raise has been compelled by a sense of ethical leadership.

Aetna Chairman and CEO Mark Bertolini raised the minimum wage at the health insurance company to $16 per hour after reading French economist Thomas Piketty’s bestseller Capital In The Twenty-First Century, which warns of the increasingly wide gap between rich and poor.

Other firms have been motivated by the desire to maintain market share.

“We’ve known for a really long time that if you look like a good corporate citizen, that’s good for sales,” Bob Keener, spokesman for the nonprofit Business for a Fair Minimum Wage, told The Huffington Post. “If you make a big public announcement about how you’re going to raise wages, you look like a good corporate citizen, and that’s going to increase your sales.”

Competition is also driving wages up. Call it a wage-hike domino effect. As the U.S. economy continues to add jobs, even retailers who claim to keep prices low in part by minimizing payroll expenses must increase how much they pay their workers to avoid losing them.

Since apparel giant Gap Inc. raised its minimum wage to $9 per hour last year, the company has seen a major influx in applicants, The Washington Post reported.

“When other large, low-wage employers boost their wages, McDonald’s has to be concerned about its employees moving to another employer where they can get another buck per hour,” said Christine Owens, executive director of the nonprofit National Employment Law Project. “There is undoubtedly some tightening in the labor market at the low end that is having an effect on wages.”

Plus, higher wages are good for business. Sales at McDonald’s and Walmart have languished over the past year, and boosting wages could actually be part of a strategy to help turn things around.

For every extra $1 a company spends each month in payroll, it could get back anywhere from $4 to $28 in monthly sales, according to a 2007 study by professors at the Massachusetts Institute of Technology, the University of Pennsylvania’s Wharton School and elsewhere.

Companies are also facing intense pressure from protesters to pay a living wage. Workers united under such groups as the "Fight for 15," which advocates for a $15 minimum wage, have led rallies in cities across the world, including a major gathering outside McDonald’s headquarters in Oak Brook, Illinois, last May. Fight for 15 is also planning a series of strikes for later this month.

Protests for higher pay are gaining steam. This week, Seattle began the process of raising its minimum wage to $15 per hour. Los Angeles is considering bumping the minimum wage for the city’s hotel workers to $15.37 -- making it the highest in the country.

While both McDonald’s and Walmart aim for a $10 average wage by next year, that is still $5 below the wage that protesters are demanding. Critics worry that these incremental pay boosts could be an attempt to undercut a movement that is gaining serious clout.

“This is a PR and a political move meant to knock the wind out of this growing and increasingly militant movement,” Peter Dreier, a professor of urban policy at Occidental College, told HuffPost. “The companies are now competing with each other not to look like they’re the worst employer in the world.”


Wednesday, April 1, 2015

Big Business Is Leading The Charge On Gay Rights Now

If Indiana's so-called "religious freedom" law goes down, you can thank Corporate America for killing it.

Big Business' outsized criticism of the state’s coyly named Religious Freedom Restoration Act has galvanized fierce opposition to the law.

Under pressure from businesses -- including the state’s largest employers -- as well as human rights groups and even other states, Republican Gov. Mike Pence said on Tuesday that he would seek to amend the law to ensure that businesses can't discriminate against anyone.

Pence vehemently denied accusations that the law would allow businesses to refuse service to gay customers, but said he would nevertheless support changes to the law in order to clear the air. Neither Pence nor GOP leaders in the legislature have detailed what the amendment will say.

That the business community was able to act so swiftly and decisively against the Indiana law is a sign of just how far Corporate America has evolved on gay rights -- from practicer of "Mad Men"-era exclusion, to protector of employee rights, to outspoken advocate. Improbably, the Fortune 500 somehow have turned into one of the country's most powerful social advocates for change.

“We’re probably at a tipping point,” said Irv Schenkler, a clinical professor of management communication at New York University’s Stern School of Business.

Things have certainly evolved since 2012, when no Fortune 500 companies opposed North Carolina’s proposed law banning same-sex marriage.

After Indiana’s law passed on Thursday, the response from the business community was swift, loud and decisive.

Salesforce.com CEO Marc Benioff was among the first to denounce the law on Friday. His cloud computing company followed up by halting company travel to the state, and put the kibosh on events planned there. Other tech companies followed, with some eventually pulling out of a conference in Indianapolis in May.

On Sunday, Apple CEO Tim Cook published a piece in The Washington Post sharply criticizing the law. A spokesman from the Human Rights Campaign told The Huffington Post that Cook’s op-ed was “a clarion call” for the opposition movement.

After Arkansas passed its own religious freedom law on Tuesday, the backlash extended to that state. Walmart, which is headquartered there, has already come out against the law and is asking Gov. Asa Hutchinson (R) to veto it.

In a statement the company said the legislation "threatens to undermine the spirit of inclusion present throughout the state of Arkansas and does not reflect the values we proudly uphold."

The hits kept on coming. “The legislation in Indiana (and there are some bills being considered in other states) is not just pure idiocy from a business perspective, and it is that,” Marriott CEO Arne Sorenson told a group in New York, as he accepted an award from a gay rights group for his company’s work on equality. “The notion that you can tell businesses somehow that they are free to discriminate against people based on who they are is madness.”

By Tuesday, a long list of companies were on the record against Indiana’s law, including Nike, The Gap, Levi Strauss and PayPal. Big Pharma companies Eli Lilly and Co. and Roche Diagnostics are opposed, as is insurer Anthem. Angie’s List announced it would halt a planned expansion in the state.

Corporate America’s transformation on gay rights happened slowly, beginning in board rooms and trickling down to workers -- who now get better rights and protections from their employers than they do from their government. Eighty-nine percent of Fortune 500 companies have policies that specifically prohibit discrimination based on sexual orientation, according to a recent report from the Human Rights Campaign.

In contrast, there is no federal law prohibiting discrimination.

But it was the U.S. Supreme Court that truly forced companies out of the closet as gay rights supporters. A stunning 379 businesses, including many of the most respected companies in the U.S., signed onto an amicus brief at the court in support of gay marriage in a case to be argued next month that could make it legal nationwide.

In 2013, about 200 companies signed onto a brief urging that the high court overturn the portion of the Defense of Marriage Act that denies federal rights and benefits (like filing joint tax returns and inheriting money) to gay couples. It was overturned.

“Over the past couple of years, business support for LGBT equality has left the boardroom and entered the public square,” said the HRC spokesman.

Several factors drove the change. First, there’s the public’s increasing support of gay marriage, in particular the support of the coveted millennial generation.

In a Pew survey released Tuesday, 62 percent of Americans ages 18-29 said they’d oppose a law like Indiana’s that would allow, say, a wedding business like a photographer or a florist to decline services to a same-sex couple. For the general population, the percentage was 49 percent.

Companies also want to attract and recruit good people -- and that means having a diverse workforce. “Let's say you’re a tech company in the Bay Area or anywhere. It’s hard enough to find programmers,” says Susan McPherson, who runs a consulting company focused on corporate social responsibility in New York. “If you limit them to be only heterosexual, you lose out. As much as I would like to think it’s altruistic [to support gay rights]. It’s about good business.”

McPherson also notes that tech companies aren’t going to want to move to states where the rights of their workers aren’t protected. It’s hard to attract workers to hostile territory. LGBT shoppers also have extraordinary purchasing power, she said. “Are you really going to alienate them as your consumers?”

The HRC spokesman notes that increasing numbers of LGBTQ Americans are coming out of the closet -- including Apple CEO Tim Cook, the first Fortune 100 CEO to reveal he was gay. (That was another Cook move that galvanized corporate support around gay rights.)

But perhaps The New Yorker’s Andy Borowitz summed up the opposition to Indiana’s law best: “Indiana Governor Stunned By How Many People Seem to Have Gay Friends.”

-- Noah Michelson contributed reporting.

This story has been updated to reflect the fact that Walmart is now asking Gov. Asa Hutchison to veto Arkansas' religious freedom law, and to include Nike in the list of companies officially opposed to Indiana's law.