Tuesday, July 29, 2014

Pensions Refunded by Labor Board


Labor board orders L.A. Council to rescind pension cuts for workers

A Five-member panel that handles labor complaints at Los Angeles City Hall handed a stinging defeat to the city's political leaders on Monday, voting to strike down Los Angeles' bid to rein in retirement costs for civilian employees.
The Employee Relations Board voted unanimously Monday to order the City Council to rescind a 2012 law scaling back pension benefits for new employees of the Coalition of L.A. City Unions, on the grounds that the changes were not properly negotiated. That law, backed by Mayor Eric Garcetti when he was a Councilman, was expected to cut retirement costs by up to $309 million over a decade, according to city analysts.
Ellen Greenstone, a lawyer for the labor coalition, described the vote as a “huge, big deal” -- one that shows the city could not unilaterally impose changes in pension benefits on its workforce.
Coalition chairwoman Cheryl Parisi said in a statement that the reduction in benefits, which included a hike in the employee retirement age, “devalues middle-class city workers and their dedication to serving the residents of Los Angeles.
"It's appalling that city officials continue to try to make city workers pay for the city's bad financial decisions," Parisi said in a prepared statement.
Garcetti is on vacation and his spokesman has refused to say where he is. A lawyer in City Atty. Mike Feuer's office could not immediately say how the city would respond. City Administrative Officer Miguel Santana, a high-level budget advisor, said the 2012 cuts had been a critical part of "bringing the city back to fiscal stability."
"The city will explore all of its options," he said.
The city’s labor board is a quasi-judicial body that reviews complaints from unions, managers and individual employees. Under the city’s labor ordinance, the panel has the power to invalidate decisions by the council, said the board's executive director, Robert Bergeson.
If council members do not agree with Monday’s decision, they can file legal paperwork seeking to have a judge overturn it, Bergeson said.
City officials have previously argued that changes in the RETIREMENT BENEFITS of future employees do not need to be negotiated. The 2012 law rolling back benefits applied only to employees hired after July 1, 2013. Budget officials had hoped that the reductions would trim the city's retirement costs by more than $4 billion over a 30-year period.
The board’s decision comes as the city's contributions for civilian employee retirement costs have climbed from $260 million in 2005 to an estimated $410 million this year, according to a recent budget report.
Garcetti and Council members could now find themselves attempting to negotiate cuts in pension costs at the same time they are also trying to reach salary agreements with coalition representatives. The city has been trying to keep a lid on raises -- yet another strategy for containing growing retirement costs.
The coalition's contract expired on July 1.

Tuesday, July 15, 2014

Obama Must Veto CISA

July 15, 2014 | By Nadia Kayyali

EFF Joins 35 Organizations, Companies, and Security Experts Calling on President Obama to 

Veto CISA

EFF joined a group of thirty-five civil society organizations, companies, and security experts that sent a letter on Monday encouraging President Obama to veto S. 2588, the Cybersecurity Information Sharing Act (“CISA”) of 2014. The letter states:
CISA fails to offer a comprehensive solution to cybersecurity threats. Further, the bill contains inadequate protections for privacy and civil liberties. Accordingly, we request that you promptly pledge to veto CISA.
Bad cybersecurity bills appear to be habit-forming for Congress. CISA, which is appropriately being called a “zombie bill” by privacy advocates and journalists, rehashes two similar (and equally flawed) bills: the Cyber Intelligence Sharing and Protection Act (CISPA) of 2012 and CISPA of 2013. Both bills were soundly defeated after major outcries on the Internet and distaste in the Senate for a bill with insufficient privacy protections.

But some lawmakers aren’t getting the message. The letter points out that, while CISA has made a small number of cosmetic changes to CISPA:
CISA presents many of the same problems the Administration previously identified with CISPA in its veto threat. Privacy experts have pointed out how CISA would damage the privacy and civil liberties of users.
As we've emphasized in the past, the bill fails to provide privacy protections for Internet users and allows information sharing in a wide variety of circumstances that could potentially harm journalists and whistleblowers. Like its previous iterations, it also contains overbroad immunity from lawsuits for corporations that share information. As the letter points out, it even contains “a broad new categorical exemption from disclosure under the Freedom of Information Act, the first since the Act’s passage in 1966.”

You can read the full text of the letter and see the signatories here. You can also take action today: tell your Senator to vote no on a bill that fails to make the Internet safer and invades the privacy and civil liberties of everyday Internet users.

CITIBANK FINED $7 BILLION

Citigroup: The Original Gangsta

Posted on Jul 14, 2014
By Robert Scheer

Radu Bercan / Shutterstock.com

Barack Obama’s Justice Department on Monday announced that Citigroup would pay $7 billion in fines, a move that will avoid a humiliating trial dealing with the seamy financial products the bank had marketed to an unsuspecting public, causing vast damage to the economy.

Citigroup is the too-big-to-fail bank that was allowed to form only when Bill Clinton signed legislation reversing the sensible restraints on Wall Street instituted by President Franklin Roosevelt to avoid another Great Depression

Those filled with Clinton nostalgia these days might want to reflect back on how truly destructive was his legacy for hardworking people throughout the world who lost so much due to the financial shenanigans that he made legal.

“Today what we are doing is modernizing the financial services industry, tearing down those antiquated laws and granting banks significant new authority,” a beaming Clinton boasted after signing the Financial Services Modernization Act into law in 1999.Ads by save onAd Options
Called the Citigroup authorization act by some wags at the time, those antiquated laws, the Glass-Steagall Act primarily, had put a safety barrier between the high rollers in Wall Street investment firms and the staid commercial banks charged with preserving the savings of ordinary folk. The new law permitted them to merge. Clinton handed the pen that he used in signing the new law to Citigroup Chairman Sanford Weill, whose Citicorp had already merged with Travelers Group before the law was even officially changed. On an earlier occasion, Weill had informed Clinton about his merger plans in a telephone conversation. After hanging up, Weill then bragged to his fellow banking executive John S. Reed, who was on the call, that “we just made the president of the United States an insider,” according to Wall Street Journal reporter Monica Langley in her book on the Citigroup merger.
In 2000, just before leaving office, Clinton went much further in radical deregulation of the financial industry when he signed the Commodity Futures Modernization Act. In one swoop this eliminated from the purview of any existing regulation or regulatory agency the new financial products, including the mortgage-backed securities at the heart of the financial meltdown and the subject of the $7 billion fine levied in what has to be viewed as a copout deal.
This is not just because the fine is paltry compared with the far greater damage Citigroup wreaked upon working Americans who lost so much but because, without a trial, there will be no public accountability of the cynicism that Citigroup’s leaders visited upon unknowing consumers.
That cynicism begins with Robert Rubin, who was selected from his leading position at Goldman Sachs to be Clinton’s Treasury secretary. It was Rubin who as much as anyone is responsible for pushing through the legislation that ended the effective regulation of Wall Street and made the merger of Travelers Group and Citicorp possible. Rubin was a darling of the mass media while in office, and the fawning adulation continued even as he moved through the revolving door and took a $15 million a year job with Citigroup, the megabank he had helped make legal. Rubin was at Citigroup during the years when it engaged in most of the practices involving subprime and other questionable mortgages that resulted in the fines the bank must now pay.
Rubin’s deputy in the Treasury Department, Larry Summers, who replaced him for the last years of the Clinton administration, was particularly important in pushing through the legislation that freed Collateralized Debt Obligations from any regulation. Summers worked to silence Brooksley Born, the heroically prescient chair of the Commodity Futures Trading Commission who had warned of the dangers posed by unregulated CDOs. Her reward for such insight was to be denied reappointment by Clinton and denounced by Summers. 
Summers set the gold standard for out-of-touch stupidity when he testified before a Senate committee that the “largely sophisticated financial institutions” were “capable of protecting themselves from fraud and counterparty insolvencies,” and “given the nature of the underlying assets involved—namely supplies of financial exchange and other financial interest—there would be little scope for market manipulation.”
Summers later made $8 million in 2008 in speaking fees from Citigroup and other banks and consulting for a hedge fund before being tapped by Obama to be his top economic adviser. Summers was instrumental in guiding the Obama administration’s efforts to keep the bankers whole while largely ignoring the fate of their victims.
The collapse of the derivative market that Summers predicted was immune to “fraud and counterparty insolvencies” plunged U.S. household worth $16 trillion or 24 percent between the third quarter of 2007 and the first quarter of 2009, according to a study by the Dallas Federal Reserve Bank.
That’s trillions of dollars, not the $7 billion fine that Citigroup just got slapped with as a means of avoiding the harsher judgment in a court of law that the bank and its politician enablers so richly deserve.

Monday, July 14, 2014

ILWU Strikes in Support of Port Teamster Local 848

Longshoremen Ordered Back To Work After Joining Trucker Strike Backed By Teamsters

 @angeloyoung_a.young@ibtimes.com
on July 08 2014 5:48 PM
Port Truck Drivers Strike
Truck drivers from companies that haul cargo from the ports of Los Angeles and Long Beach start a two-day strike to protest alleged labor violations in front of Long Beach Container terminal in Long Beach, California April 28, 2014. On Monday a similar strike began, the fourth of its kind in the past year. Reuters/Kevork Djansezian
 
Amid delicate negotiations that will determine the flow of a third of all U.S. cargo container traffic for the coming months, dozens of Longshore workers at two of the country’s busiest ports were ordered back to work Tuesday after they walked off the job in solidarity with a group of fed-up truck drivers.


The Longshore workers returned to their jobs at about 11 a.m. at the Port of Los Angeles and the adjoining Port of Long Beach after a federal arbitrator said their walk-off was against their contract.

The workers began a strike on Monday to express solidarity with about 120 truck drivers backed by Teamsters Local 848 who claim they are improperly classified by their employers as contract workers. Unlike direct employees, contract workers are typically paid less, bear higher payroll deductions and receive fewer if any benefits than regular employees.

The drivers work for three nearby companies, Green Fleet Systems, Total Transportation Services Inc. and Pacific 9 Transportation, which handle cargo to and from the ports. It’s the fourth such protest in the past year, including a two-day strike in April. Drivers were seen picketing the truck yards and following drivers from these companies to and from the ports.

"Green Fleet is discouraged to learn that outside interest groups have again decided to block the rights of these drivers to go to work and earn a living,” the company said in an email sent to IBTimes on Tuesday. “The fact is that an overwhelming majority of contractors and drivers affiliated with Green Fleet don't want these groups involved in their work.”

The International Longshore and Warehouse Union (ILWU), which represents the workers keeping cargo flowing through 30 West Coast ports, is currently in talks to renew a six-year contract with the Pacific Maritime Association (PMA), which represents the port operators.

On Monday, the two sides announced a cooling-off period in the heated negotiations that will establish new pay and benefits for the roughly 20,000 workers that move cargo between the ships, terminals and trucks. Historically, these talks often run past the June 30 contract-expiration date but are typically resolved by the middle of July.

“During this break, starting at 8 a.m. on Tuesday, July 8, through 8 a.m. on Friday, July 11, the parties have agreed to extend the previous six-year contract, which expired last week,” said a joint statement from the ILWU and PMA.

The longer these negotiations take, the more likely workers will institute slowdowns, which can force cargo movement to a crawl.

In 2000, talks went on for months in part over issues pertaining to port automation, which reduces the need for workers. Port operators instituted a 10-day lockout that required then-President George W. Bush to invoke his authority to order the reope ning of the ports.

The smooth operation of U.S. ports is vital to the country’s commercial activity. In May, retailers warned businesses to expect operations to slow this summer.

Tuesday, July 8, 2014

Job Growth Up in States With Higher Minimum Wage

States that Have Raised the Minimum Wage this Year Have Faster Job Growth

States that Have Raised the Minimum Wage this Year Have Faster Job Growth

In the 13 states that saw their minimum wage rise on Jan. 1, 2014, job growth has been higher so far this year than in states where the minimum wage stayed the same. Extreme pro-business interests often argue that raising the minimum wage will lead to job losses, but once again, the evidence suggests otherwise.

The Center for Economic and Policy Research looked closely at the data and found states that raised their minimum wage increase have seen an average increase in employment of 0.99%, while the static states saw an increase of only 0.68%.

Of the 13 states, all but New Jersey saw employment gains and nine of the 13 states are above the median state in job growth. Four of the 13 states saw their minimum wage increase because of new legislation, while the rest saw automatic increases related to inflation.

The states in question are: Arizona, Colorado, Connecticut, Florida, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, Vermont and Washington.

First Fruit of CAFTA, NAFTA Exploitation


The awful reason tens of thousands of children are seeking refuge in the United States


Girls sit in the US immigration detention facility in Nogales, Arizona  
A surge of unaccompanied child migrants has been crossing the US-Mexico border and seeking refuge in the United States since 2011, and the problem seems to be getting worse. US Customs and Border Protection says that apprehensions of unaccompanied children are up a staggering 92 percent from the previous year, with growing numbers of children coming from Guatemala, El Salvador, and Honduras. Since October, 52,000 children have come to the US without an adult.

They're coming in so quickly that normal immigration facilities have been completely overwhelmed, and thousands of kids are now being warehoused in makeshift detention centers, like the one shown above. Border state politicians, particularly Republicans, want to tighten immigration restrictions; immigrant rights activists say that's the exact opposite of what these children need.

Recent studies suggest that most of these unaccompanied children aren't economic migrants, as many Americans might assume — they're fleeing from threats and violence in their home countries, where things have gotten so bad that many families believe that they have no choice but to send their children on the long, dangerous journey north. They're not here to take advantage of American social services — they're refugees from conflict. Understanding the nature of the violence pushing them north is crucial for figuring out what to do about the child refugee crisis on our southern border.

Economist_immigration_map

Why are so many children fleeing Central America?

Guatemala, Honduras, and El Salvador, the three countries that make up Central America's "Northern Triangle," are experiencing a terrifying level of violence that's been rising rapidly since the late 2000s. State weakness and corruption have allowed a number of different armed groups — including transnational street gangs, drug cartels, and other organized crime syndicates — to flourish, checked by little but their competition with one another.
Today, those groups battle for control of drug trafficking routes, residential neighborhoods, bus systems, human-smuggling operations, and more or less anything else that allows them to leverage their skills in violence to extract a profit.
To put the problem in perspective, this chart shows murder rates in Guatemala, El Salvador, and Honduras since 2007:

Central_america_homicides_screen_shot_
And this chart shows civilian casualties in Iraq from the same period:
Screen_shot_iraq_casualties__unodc_report
Source: UNODC
These charts show that the murder rate in Honduras in 2012 was a whopping 30 percent higher than UN estimates of the civilian casualty rate at the height of the Iraq war. In other words, all three Central American countries were, statistically speaking, twice as dangerous for civilians as Iraq was.

Why are children coming in such large numbers? 

Are gangs targeting kids specifically?

Children are uniquely vulnerable to gang violence. The street gangs known as "maras" — M-18 and Mara Salvatrucha, or MS-13 — target kids for forced recruitment, usually in their early teenage years, but sometimes as young as kindergarten. They also forcibly recruit girls as "girlfriends," a euphemistic term for a non-consensual relationship that involves rape by one or more gang members.

"The gang told me that if I returned to school, I wouldn't make it home alive"
If children defy the gang's authority by refusing its demands, the punishment is harsh: rape, kidnapping, and murder are common forms of retaliation.  Even attending school can be tremendously dangerous, because gangs often target schools as recruitment sites and children may have to pass through different gangs' territories, or ride on gang-controlled buses, during their daily commutes.

A recent report on the child migrant crisis from the United Nations High Commissioner for Refugees (UNHCR) includes testimony from several children who came to the US to escape gang violence. Here's 17-year-old Alfonso, explaining why he fled after receiving threats from Mara-18 members at his school:
"The problem was that where I studied there were lots of M-18 gang members, and where I lived was under control of the other gang, the MS-13. The M-18 gang thought I belonged to the MS-13. They had killed the two police officers who protected our school. They waited for me outside the school. It was a Friday, the week before Easter, and I was headed home. The gang told me that if I returned to school, I wouldn't make it home alive. The gang had killed two kids I went to school with, and I thought I might be the next one. After that, I couldn't even leave my neighborhood. They prohibited me. I know someone whom the gangs threatened this way. He didn't take their threats seriously. They killed him in the park. He was wearing his school uniform. If I hadn't had these problems, I wouldn't have come here."
15-year-old Maritza:
"I am here because the gang threatened me. One of them "liked" me. Another gang member told my uncle that he should get me out of there because the guy who liked me was going to do me harm. In El Salvador they take young girls, rape them and throw them in plastic bags. My uncle told me it wasn't safe for me to stay there. They told him that on April 3, and I left on April 7. They said if I was still there on April 8, they would grab me, and I didn't know what would happen."
17-year-old Mario:
"I left because I had problems with the gangs. They hung out by a field that I had to pass to get to school. They said if I didn't join them, they would kill me. I have many friends who were killed or disappeared because they refused to join the gang. I told the gang I didn't want to. Their life is only death and jail, and I didn't want that for myself. I want a future."
As these testimonies show, merely attempting to get an education can be life-threateningly dangerous for children in gang-controlled areas — which helps to explain why so many feel they have no choice but to leave.

What about the police? Can't they protect the kids?

103623678
Members of the Mara 18 gang on trial for extortion and murder in Guatemala City. JOHAN ORDONEZ/AFP/Getty Images

Nope. In all three countries, the police are too weak and corrupt to offer any meaningful protection. In fact, the police often essentially operate as dangerous criminal gangs themselves.
Nearly three in four killings in Guatemala still go unpunished

In both El Salvador and Honduras, there are numerouscredible reports that the police are responsible for hundreds of "social cleansing" killings, including the murders of youths they suspect to be gang members. The Salvadoran national police "specializ[es] in obstructing justice and guaranteeing impunity for those with sufficient amounts of money," writes Hector Silva, a fellow at American University who researches police corruption.

Guatemala's police (and military) were so thoroughly infiltrated by organized crime that in 2006 the United Nations had to set up a special agency, the International Commission against Impunity in Guatemala (which goes by its Spanish acronym, CICIG), to help fight the pervasive abuses committed by "clandestine groups." CICIG has enjoyed some recent successes, but nearly three in four killings committed in Guatemala still go unpunished.

But isn't the journey to the US also dangerous for children?

Yes, it is — but for desperate families trying to save their kids' lives, it's often the best of a bad set of options.
There is no denying that the long overland journey from the northern triangle to the US is tremendously dangerous. Routes north are increasingly under the control of Mexico's Los Zetas cartel, according to a recent report from the US Conference of Catholic Bishops, which means that child migrants are at risk of "violence, extortion, kidnapping, sexual assault, trafficking and murder" during the journey. Sending a child to the United States is also extremely expensive. "Coyotes" (people smugglers) charge $5,000 to $7,000 to bring a child to the US, according to the same report — an amount that can represent more than 18 months of earnings for an entire family.
Still, even with all the dangers of the journey north, when children become the targets of gang threats, there is often no better option available to their families than to send them to the United States (or another safe country). Refusing the gang's demands is more dangerous, because it is likely to lead to violent retaliation. Agreeing to join a gang is more dangerous, because it means signing up for a (probably short) life of crime and violence. Acceding to a gang member's sexual demands is more dangerous, because it means accepting certain rape, as well as the other dangers that come from being associated with a criminal group. Because the police do not offer meaningful protection, migration is the only course of action that remains.

Coming to the US is risky. But for these vulnerable kids, it's the best hope there is.

What can the US do about this crisis?

450883218
Children detained at the US immigration holding center in Nogales, Arizona. Ross D. Franklin-Pool/Getty Images

Part of the challenge for the US is reducing the number of children who arrive at the border in the first place. The most effective way to do that would probably be to allow kids to apply for asylum (or another form of humanitarian immigration relief) from their home countries.

That policy would allow children to escape violence at home without forcing them to risk the dangerous overland journey. It would also ease the burden on US immigration facilities, because there would be no need for the children to be detained after entry, or to go through removal proceedings in immigration court. Unfortunately, that option does not appear to be under serious consideration.

The other part of the challenge is what to do about the kids who are already at the border. For this, President Obama is asking Congress for additional authority to deport unaccompanied children quickly. It's likely that that would mean sending them back after just a brief interview with border guards, without a full hearing on their asylum claims or an opportunity to request other humanitarian relief.  If that happens, it is all but certain that some children with legitimate fears of persecution will be sent back to their home countries, either because they are too young and unsophisticated to advocate for themselves, or because they are too afraid to tell interviewers the whole story right away.
As those policies are debated in the coming days, it's important to remember what Obama is really proposing: to send young children back, alone, to a conflict zone that is twice as dangerous as Iraq was from 2008 to 2012.

Monday, July 7, 2014

Cooperative Movement Owners Development Fund

Worker-Owners Cheer Creation of $1.2 Million Co-op Development Fund in NYC

  By Rebecca Burns, In These Times | Report

In a victory for new economy advocates, the New York City Council passed a budget last month that will create a $1.2 million fund for the growth of worker-owned cooperative businesses. The investment is the largest a municipal government in the U.S. has ever made in the sector, breaking new ground for the cooperative development movement.

Melissa Hoover, executive director of the U.S. Federation of Worker Cooperatives and the Democracy at Work Institute, hails the New York City Council’s move as “historic.” “We have seen bits and pieces here and there, but New York City is the first place to make an investment at that level,” she says.

New York’s cooperative development fund was the brainchild of a coalition of community groups—including the Federation of Protestant Welfare Agencies, the New York City Network of Worker Cooperatives, the Democracy at Work Institute, Make the Road New York and others—that came together to stage a series of public forums and advocacy days to secure widespread support for the initiative on the City Council. Over the next year, the fund will provide financial and technical assistance in the planned launch of 28 new cooperatives and the continued growth of 20 existing cooperatives, supporting the creation of 234 jobs in total.

While this may just be a drop in the bucket when it comes to the city’s $75 billion total budget, cooperative advocates are hoping New York’s example can help turn the tide in favor of alternative strategies for urban development.

“We’d like to get to a tipping point where [cooperatives] really have a measurable impact on the local economy,” says Hilary Abell, a San Francisco-based co-op development consultant who co-founded the group Project Equity. She notes that while interest in cooperatives has surged, there are still fewer than 5,000 “worker-owners” nationwide. Nevertheless, the model of worker-owned cooperatives has captured the imaginations of many low-income communities of color hit hardest by the Great Recession, she says, creating “a window of opportunity to take this to the next level.”
 
Last month, Abell released a report called “Worker Cooperatives: Pathways to Scale,” which outlines a set of strategies to grow the cooperative movement nationwide. While  there are several promising federal policy initiatives underway—Senator Bernie Sanders (I-Vt.), for example, has introduced a bill that would create an Office of Employee Ownership and Participation within the U.S. Department of Labor, as well as another that would establish a U.S. Employee Ownership Bank—Abell believes that “advocacy for cooperatives may have the greatest momentum at the state and municipal levels.”

Across the country, similar local economic justice coalitions have been seeking to persuade municipal governments and local institutions to throw their resources behind the development of worker-owned co-ops. It’s those resources, many advocates believe, that could take co-ops from a niche movement to a broad-based strategy for creating living-wage jobs and putting economic power in the hands of workers.

To that end, Abell hopes to see more cities follow in New York’s footsteps. In the Bay Area, she tells Working In These Times, local organizers are currently reaching out to local officials for support in scaling up worker-owned cooperatives to the point that they constitute five to 10 percent of the local economy. The coalition is particularly focused on creating jobs for workers of color in the low-income areas of the East Bay , as past experiences have shown that worker-owned co-ops can be particularly effective in redressing racial inequities in the job market. For example, Women’s Action to Gain Economic Security (WAGES), a network of nearly 100 worker-owned cleaning cooperatives in Oakland, has increased members’ incomes by more than 50 percent.

Other hotbeds of co-op development include Richmond, California, where the city has hired its own cooperative developer and is launching a loan fund under the leadership of Green Party Mayor Gayle McLaughlin. In Cleveland, Ohio, the city’s economic development department has worked closely with the Evergreen Cooperatives, a network of worker-owned green cleaning, farming and construction businesses; local hospitals and universities have also thrown their purchasing power behind worker-owned businesses. And as In These Times has reported previously, several unions have made a foray into the co-op business, combining place-based growth with a focus on leveraging changes across industries such as homecare.

Instead of simply appealing to local leaders for support, some activists have sought to build both political and economic power by building electoral campaigns around the issue of cooperative development. No city had secured greater local support for co-ops than Jackson, Miss., a majority African-American municipality where human rights attorney and longtime black radical activist Chokwe Lumumba was elected mayor last year on a platform that included the use of public spending to promote cooperative enterprises. But following Lumumba’s sudden death in February, the movement that brought him to office has been left struggling to implement the vision it had forged.

Local activists say new Mayor Tony Yarber has been tepid in his support for the cooperative development plan developed by Lumumba’s administration, leaving them uncertain as to whether they can count, for example, on city contracts being awarded to local worker-owned businesses. According to Brandon King, a member of the group Cooperation Jackson who also worked on the Lumumba campaign, access to such contracts would have been a huge boon for nascent construction and waste-management cooperatives, as Lumumba’s campaign had estimated that the city would need to spend $1.2 billion over the next 10 to 15 years on infrastructural upgrades and repairs. What often happens, says King, is that contracts go to companies located in wealthier and majority-white suburbs outside of Jackson, with the result that “people in Jackson aren’t really engaged in building their own city.”

Despite the change of course in city government, King says Cooperation Jackson “is still working on building co-ops that are large-scale, and getting as many people engaged in economic democracy as possible.” The movement has a history of black community participation in cooperative enterprises to draw from, King notes. Meanwhile, adds Cooperation Jackson memberIya'Falola Omobola, while the group works to get childcare and urban farming cooperatives off the ground, with or without city support, “We’re going to be ready to mobilize around an appropriate candidate in the next [mayoral] election.”

Noting the particular conditions that have helped secure local support for cooperatives in New York City and Jackson, the Democracy at Work Institute’s Hoover acknowledges that activists are still exploring how these can be replicated elsewhere. But if these cities are successful in retaining long-term support for cooperative growth, they can serve as a jumping-off point for other areas. “Our hope is that these won’t be one-off examples,” Hoover says. “What we need ultimately is a shift among those doing local development: from, ‘Quick, let’s get a Home Depot to come in and create jobs, but they’re low-wage and low-skilled,’ to a deeper and more patient strategy. These places could really start that shift.”

Originally published at InTheseTimes.com 

Rebecca Burns

Rebecca Burns, In These Times Assistant Editor, holds an M.A. from the University of Notre Dame's Kroc Institute for International Peace Studies, where her research focused on global land and housing rights. A former editorial intern at the magazine, Burns also works as a research assistant for a project examining violence against humanitarian aid workers.