SEC finally delivers on CEO pay ratio disclosure

It took five years, but now workers and shareholders will know how much a company's top executive makes compared to the average worker there.

SEC joins Teamsters in standing up to CEOs.

The Securities and Exchange Commission (SEC) approved the CEO pay ratio rule at a meeting today after years of discussions. The provision had been mandated as part of the Dodd-Frank financial reform law approved in 2010. More than 280,000 comments had been filed with the agency in favor of the measure.

Teamsters Secretary-Treasurer Ken Hall said approval of the rule was a long time coming, but worth the wait:

At a time when corporate profits are near an all-time high and income inequality is growing, employees and shareholders have a right to know whether companies are padding the wallets of executives at the cost of workers and the company’s bottom line. It’s time we learn from the past failings that helped cause the Great Recession.

The Teamsters and other unions have actively called on the SEC to implement the rule. According to an AFL-CIO study of CEO pay at S&P 500 companies, the average CEO earned 373 times more than the typical U.S. worker in 2014. In contrast, CEOs in 1980 made 42 times more than the average employee.

But that doesn't mean the provision is perfect. As Bloomberg noted:

In a nod to businesses such as Exxon Mobil Corp. that oppose the effort, the SEC will require the metric to be updated only once every three years and will allow companies to exclude as much as five percent of their foreign workers from the calculation. 

The SEC allowed for some discretion in determining the median pay of workers. Companies can use sampling to estimate the figure, rather than calculating it by tallying data from all of the payrolls across the company.

The new rule will make a difference, however. While the CEO pay ratio disclosure alone will not resolve income inequality in our country, it can help identify a huge source of the problem and inform how we want to shape compensation in corporate America.

Today's Teamster News 07.22.15

Teamsters
Port Truck Drivers At Pac 9 Begin Strike  Teamster.org  ...Port truck drivers at Pac 9 in Los Angeles/Long Beach began a strike today to protest against their continued misclassification as independent contractors. While on strike they will continue their legal fight to recoup stolen wages and many will support their families by working at one of four Teamster companies - Eco Flow Transportation, Shippers Transport Express, Toll Group or Horizon Lines...
Local 727 Protects Wages, Working Conditions for Arlington OTB Members  Local 272  ...Teamsters Local 727-represented Arlington Racecourse OTB workers ratified a new one-year agreement that protects their wages, benefits and working conditions. The agreement also includes an economic re-opener in the event that gaming legislation is passed. “The state’s horseracing industry is facing obstacles, but we were able to preserve our members’ jobs and secure fair wages and working conditions,” said John Coli Jr., President of Local 727...
Employee Misclassification Hearings Begin in Georgia  Teamster.org  ...Today in Savannah, Georgia, the site of one of the nation's largest ports, a public hearing will be conducted to hear cases of employee misclassification - 2,000 of which have been brought by port truck drivers misclassified as independent contractors. “We’re the lowest paid in the industry. Everybody else got a future in it but the driver. It’s time for a change and that’s why we’re raising our voices tomorrow.”  John Jackson, Savannah, port driver...
Contract Truck Drivers Strike Indefinitely Against Pacific 9 Transportation In LA  CBS  ...Port truck drivers went on strike Tuesday to improve conditions for themselves, their families and all drivers. Workers declared their intent to not return to Pac 9 until they are properly classified as employees and provided safe trucks to drive, officials said. In fact, several workers have already joined a new Teamster company. “Pac 9 drivers have courageously withstood retaliation and mistreatment by their employer for over two years,” said Fred Potter, Teamsters Port Division Director...
Port truck drivers plan sixth strike against company  LA Times  ...Drivers at a trucking company serving the Los Angeles and Long Beach ports plan to walk away from their jobs Tuesday in an ongoing struggle to be deemed employees, a union representative said. The picket lines, scheduled to go up around the company’s truck yard and port terminals at 6 a.m. Tuesday, will mark the sixth strike against the company in nearly two years, Teamsters Union spokeswoman Barbara Maynard said...

Global Labor & Trade
Thousands of Garment Factory Workers Across Cambodia Are Fainting on the Job  In These Times  ...At the end of June, nearly 350 workers fainted in garment factories across Cambodia, with more than 100 collapsing on one day alone. These developments are part of a much wider pattern in the country: In 2011, there were 2,071 incidents of workers fainting, in 2012 there were 2,100. Last spring, nearly 120 workers fainted at two textile factories that make products for Puma and Adidas. From July of last year on, there were 733 fainting incidents across 14 different factories...
Work moves ahead on TPP trade pact, but nations still divided over deal  Pew Research Center  ...Trade ministers from the U.S. and 11 other nations from both sides of the Pacific will meet in Hawaii next Tuesday to attempt to finalize what would be the world’s largest regional trade and investment agreement: the Trans-Pacific Partnership. But while the pact has general public support in most of the countries involved, there are also deep partisan divisions in some of them over the issue. This partisanship suggests that TPP, one of President Barack Obama’s principal foreign economic policy legacies, is not yet a done deal...
US, Malaysia show least support for Trans-Pacific partnership - poll  Turkish Weekly  ...Americans and Malaysians show least support for the US-promoted Trans-Pacific Partnership (TPP) trade deal among all participants, with 38 percent of citizens backing the potential agreement, Pew Research Center poll, issued on Tuesday, found. “The weakest support is in the US and in Malaysia (38%),” the poll read. The TPP is set to become the largest free trade deal, involving 12 countries from the Asia-Pacific region...
Ottawa says it won’t be 'bullied' by U.S. over TPP dairy negotiations  Globe & Mail  ...The Canadian government says it will not be bullied as the United States ratchets up pressure on Canada’s heavily protected dairy sector ahead of what could be the final round of talks for a Pacific Rim trade deal spanning 12 countries. More than 20 members of U.S. Congress have written a letter to the Canadian government accusing it of being “unwilling to seriously engage in market access discussions regarding dairy”...
Company v Country: Investigating the booming and lucrative business of multinational companies suing governments (radio) BBC  ...The strangely-named investor state dispute settlement (ISDS) system is built into thousands of treaties between countries around the world. It is a key part of negotiations for a new trade and investment treaty between the US and the EU. Yet on both sides of the Atlantic, resistance is mounting. Michael Robinson digs into the ISDS mechanism to find out if the fears are justified. Are these little-known lawsuits threatening the democratic process?...
Trade debate masks America’s competitive disadvantage  (opinion) PBS  ...The Trans-Pacific Partnership may be out of the headlines momentarily, but it continues to be as contentious as ever. the debate fails to include the real issue: the ability of the United States as a country to compete in the world economy. A winning strategy for the U.S. today requires much more than cooperation between government and business. We need a highly skilled work force, which in turn means a world-class education system and access for all. We need to repair and improve our infrastructure...
Austerity-hit Ireland debates how to spend extra €1.5bn  Financial Times  ...For two days last week, politicians, civil society activists and business leaders gathered at Dublin Castle to discuss something rare in austerity-ravaged Ireland — how to spend an extra €1.5bn. The sum represents the “fiscal space” the government says it has to cut taxes and increase spending in the 2016 budget...
Greece's debt crisis explained, in mythological terms  LA Times  ...Prime Minister Alexis Tsipras successfully persuaded his fellow Greeks to reject austerity measures in a recent referendum, but it was a "Pyrrhic victory" since he now faces an even more devastated economy and deeper austerity cuts. Against his own party's ideals, Tsipras has now committed himself to more "draconian" budget cuts, with Greece forced to carry out the "Sisyphean task" of ever-increasing austerity...

State & Living Wage Battles
National push for $15 minimum wage hits home for U.S. Senate workers  Washington Post  ...Baker is among a group of federal contract workers who are joining with union-backed advocates to call on lawmakers to do more to protect an increasingly privatized federal workforce, where low wages and minimal benefits often clash with the rhetoric espoused by elected leaders. “We work for them every day,” Baker said. “They have a clean environment; they’ve got good food to eat. They say, ‘Thank you very much’ and ‘Good work.’ But that’s not enough. I need more so I can pay my bills -- $15 and a union”...
North Carolina Just Relaxed Its Voter ID Law, But Will Voters Get The Memo?  Huffington Post  ...Voting rights advocates were at least somewhat pleased when the North Carolina General Assembly unexpectedly voted in June to modify the state's strict requirement that voters present government-issued photo ID at the polls. But now, they're concerned that the state won't adequately educate people about the softened ID law before it goes into effect next year...
L.A. County supervisors agree to boost minimum wage to $15 an hour by 2020  LA Times  ...Organized labor won an important victory Tuesday when the Los Angeles County Board of Supervisors voted to increase the minimum wage to $15, but it now faces a more daunting political challenge: convincing other local governments to join the movement. The widely anticipated move by the nation’s largest local government applies to unincorporated areas and hundreds of thousands of employees, mirroring a similar action by the city of Los Angeles...
New York fast food workers’ $15 wage vote on Wednesday  KFOR  ...New York’s fast food workers could soon get paid a lot more. On Wednesday, the wage board is set to vote on New York Governor Andrew Cuomo’s proposal to raise the state’s minimum wage for fast food workers to $15 an hour. The meeting will be held in New York City at 2.30 pm. New York’s minimum wage for all workers has risen from $7.25 to $8.75 an hour in the last two years. By the end of this year, it will be $9...
If you want a living wage, be prepared to go on strike for it  (opinion) The Guardian  ...Is the best way to achieve higher wages really legislation? Many think so. Across the country, working people are eagerly waiting to feel the effects of new laws that raise the minimum wage. Seattle will see an increase to $15 by 2021, and Los Angeles will see the same increase by 2020. But this strategy detracts from the only power dynamic that can actually overturn economic inequality: class struggle...
How the American South Drives the Low-Wage Economy  American Prospect  ...Today, as the auto and aerospace manufacturers of Europe and East Asia open low-wage assembly plants in Tennessee, Alabama, South Carolina, and Mississippi, the South has assumed a comparable role once more. Indeed, the South today shares more features with its antebellum ancestor than it has in a very long time. White Southern elites and their powerful allies among non-Southern business interests seek to expand to the rest of the nation the South’s subjugation of workers and its suppression of the voting rights of those who might oppose their policies...

U.S. Labor
1,000 NYC airport workers set to strike starting Wednesday  Associated Press  ...More than 1,000 subcontracted airport security officers, baggage handlers and wheelchair attendants at the city's two major airports plan to strike starting Wednesday night, according to a union that seeks to represent them. Officials with Local 32BJ of the Service Employees International Union said picketing would begin at Kennedy Airport at 10 p.m. Wednesday and at LaGuardia at 6 a.m. Thursday...
UAW Donates $50,000 in Memory of the Charleston 9   AFL-CIO  ...Members of the UAW on Thursday announced a $50,000 donation to the Rev. Clementa Pinckney fund in honor of the Charleston 9 who were tragically murdered on June 17. “UAW members often speak of bridging the gap to lift up our communities. Through our long history of civil rights advocacy, economic justice advocacy and economic fairness advocacy, the very ideals that we have come to learn were so near and dear to those who lost their lives June 17 at the Emanuel AME Church,” said UAW President Dennis Williams...
Legislators told trucking companies deliberately misclassify workers  Savannah Now  ...Two independent truckers choked up separately as they testified before a legislative committee Tuesday about the toll they say comes from companies misclassifying workers as independent contractors instead of employees. The emotional moments came in the middle and end of a daylong hearing by a subcommittee of the Senate Insurance and Labor Committee assigned to study worker classification...
Unemployment Rates a Mixed Bag  Associated Press  ...Unemployment rates fell last month in 21 U.S. states and were unchanged in 17, as widespread job growth and a shrinking workforce reduce the ranks of those out of work. The Labor Department said Tuesday that unemployment rates rose in 12 states. Employers added jobs in 31 states and cut them in 17, with little change in the remaining two states. The figures reflect steady hiring nationwide. Employers added 223,000 jobs in June, and the U.S. unemployment rate fell to 5.3 percent from 5.5 percent...
Time Is Political  Jacobin  ...A recent survey of New York City retail workers found that only 17 percent of workers had a regular work schedule. Retail workers reported that in order to get more hours or more desirable shifts they sometimes had to compete with coworkers to sell a certain amount, or sign up the most people for store credit cards. In this way, they were battling with each other just for the ability to work and earn more...

Miscellaneous
Obama Administration Announces New Rules Protecting Military Families From Predatory Lenders  Think Progress   ...America’s armed forces personnel will no longer be exposed to exploitative payday loans after the Department of Defense (DOD) put new, long-delayed rules into place on Tuesday. The news marks a victory for an idea that had seemed at risk of being killed just months ago by lawmakers friendly to the lending industry...
Five Years Later, the Unfulfilled Promise of Dodd-Frank  Common Dreams  ...With several key promises of the Dodd-Frank Wall Street Reform and Consumer Protection Act still unfulfilled, "Americans cannot be comforted that Wall Street will not wreak havoc again," according to a new report from the watchdog group Public Citizen. "Five years after President Barack Obama signed this legislation, Dodd-Frank remains largely incomplete," said Bartlett Naylor, Public Citizen’s financial policy advocate and author of the report...
6 insidious ways the one percent is ripping you off  Salon  ...In the wake of the financial crisis, there was a momentof hope that predatory businesses would no longer be able to pick at our bones like vultures. Instead, we’ve seen Dodd-Frank weakened and stalled, and the newly created Consumer Financial Protection Bureau stymied at every turn. In the latest round, Republicans are thwarting the confirmation of Richard Cordray to lead the Bureau. Meanwhile, we continue to get fleeced...
“I Will Light You Up!” Disturbing Dashcam Footage Shows the Traffic Stop That Led to Sandra Bland’s Arrest.  Slate  ...Tuesday afternoon saw the release of extraordinary dashcam footage of the traffic stop that led to Bland’s arrest. In the video, you can see Bland’s car making a lane change right before the officer who was driving behind her, who has been identified as Texas Department of Public Safety trooper Brian Encinia, pulls her over. “You seem very irritated,” he says to her, while standing next to the driver’s side window...
Why the Black Lives Matter Protest at Netroots Nation Was Long Overdue   (opinion) The Nation  ...The action kicked off a necessary conversation about the Democratic candidates’ reluctance to address racism directly, the problem with saying “all lives matter,” and why economic populism devoid of a race and gender analysis will neither satisfy nor mobilize a sizeable chunk of progressive voters. These activists have changed the tone for the 2016 election season, putting Democrats on notice that they cannot expect the support of black voters—particularly young black voters—without speaking directly and meaningfully to issues of race and state power currently gripping the country...

It's time for Congress to move on CEO pay reform

The Teamsters have taken a stand against excessive pay at McKesson.

While Americans may differ on the remedies and solutions, most agree that income inequality is a very real problem with devastating effects for families and communities across the nation. And the Teamsters have been active in challenging lawmakers and companies to change it.

CEOs are paid more than 300 times the average worker. In good times or bad, CEOs are coming out on top. When companies struggle, workers bear the brunt – not so for all too many bosses who chase short-term unsustainable goals, inspired by exorbitant sums of cash, equity and perks. The direct effects are clear – lack of investment going back into companies for employees, research and development, destruction of morale and motivation for front-line workers and a dangerous always escalating expectation of compensation at the top. Long-term shareholders such as pension funds suffer as companies can't sustain growth, creating more risk and uncertainty for working families.

The Teamsters are taking corporations to task on these issues. In fact, the union is currently sponsoring a shareholder proposal at McKesson that would address the automatic accelerated vesting of equity awards for top executives in the event of a change of control. At the center of the controversy is the company's CEO John Hammergren, formerly listed as as the nation's highest paid chief executive.

Hammergren's compensation is especially egregious given that many employees earn wages so low they can't contribute in the company's health or retirement plans. As Teamsters General Secretary-Treasurer Ken Hall said:

McKesson should ensure that front-line employees can afford health care and a secure retirement before lavishing hundreds of millions in unearned compensation to a handful of highly paid executives. Guaranteeing windfall payouts to top executives on their way out the door does not benefit shareholders over the long term.

The Dodd-Frank Act of 2010 recognized this problem and created a mandate for publicly traded companies to disclose the ratio of CEO pay to the median company employee’s pay. Such disclosure could provide shareholders crucial insight on risks related to their investment. The Securities and Exchange Commission (SEC) to date has not implemented a rule despite receiving wide-scale public feedback on their proposed rule.

It is now five years since the passing of Dodd-Frank. Despite various pronounced timelines from the SEC that always end up being pushed back, the U.S. still has no rule, no disclosure and no end in sight for the growing pay disparity at American companies. This rule and others regarding executive compensation remain the glaring loose end from the financial reforms that came about to address the issues which lead to Great Recession.

While this disclosure alone cannot resolve income inequality in our country, it can help identify a huge source of the problem and inform how we want to shape compensation in corporate America. We as a nation cannot afford to wait any longer and the SEC must play its part.

Today's Teamster News 12.13.14

Teamster News
While Cromnibus Waits, Teamsters Object to Pension Plan  Roll Call   ...the Senate might not be able to hold its final vote on the measure until Monday...Teamsters Object. With the fiscal 2015 spending bill on track for action, the Teamsters union is weighing in with a last-ditch effort to get lawmakers to reject the measure. A statement from Teamsters President Jim Hoffa pointed to pension changes in the measure, which the union said would result “in an untold number of retirees losing a substantial percentage of their fixed income should reductions be required.” The Teamsters are also objecting to the controversial hours of service rules in the bill...
34-Hour Restart Changes: House Passes Spending Bill; Eyes On Senate  Commercial Carrier Journal   ...First, it removes the requirement that drivers’ 34-hour restarts include two 1 a.m. to 5 a.m. periods. Second, it removes the one-per-week limit of the restart’s use. It also requires FMCSA to produce a study to show how the restart provisions improve safety. The stay of enforcement of the rules will end after Sept. 30, 2015, and after FMCSA provides its report justifying the rules...
Reid Announces Weekend Votes After Blockade (Updated)  Roll Call   ...Reid also said that absent an agreement, the Senate would vote at 1 a.m. Sunday to limit debate on the cromnibus spending package...
CRomnibus Disaster Signals a Sad New Normal in D.C.  The Fiscal Times   ...Under the bill, trustees would be enabled to cut pension benefits to current retirees, reversing a 40-year bond with workers who earned their retirement packages...
Sysco Poised To Complete $8.2B Merger With US Foods  New York Post   ...Sysco is poised to complete the $8.2 billion merger with its closest rival, US Foods, but at a much stiffer price than expected, The Post has learned. America’s biggest food-service provider, Sysco is selling assets worth $5 billion to Performance Food Group (owned by Steve Schwarzman-led Blackstone Group) to win regulatory approval, two sources said. That is equal to roughly one-quarter of US Foods’ revenue...
Congressman Urges Cooperation Between Teamsters And Giant Eagle Distributor  WFMJ   ...Representative Ryan as sent letters pleading with the Tamarkin Company and Teamsters Local 377  to “quickly and efficiently negotiate a fair resolution to the ongoing labor dispute. The result of an impasse is simply not in the best interests of the workers, the company or this community,” writes Ryan...
State AFL-CIO opposes Bill de Blasio's horse carriage ban  New York Daily News   ... A resolution passed Friday by the state AFL-CIO says New York City's carriage industry provides 300 good middle-class jobs. The major statewide labor coalition is the latest of several union groups to vow to fight the mayor's proposal...
Trade
Growing U.S. trade deficit with China cost 3.2 million jobs between 2001 and 2013, with job losses in every state  Economic Policy Institute   ...a growing U.S. goods trade deficit with China has the United States piling up foreign debt, losing export capacity, and losing jobs, especially in the vital but under-siege manufacturing sector...
Obama 'more optimistic' about Pacific trade deal  The Hill   ...President Obama said Thursday he believes the odds for striking a Trans-Pacific Partnership trade agreement are "significantly higher than 50-50" in a meeting Thursday with his export council...
State Battles
Warren County Votes To Become Right To Work County  WBKO   ...Fiscal Court approved a right to work ordinance on the first reading Thursday morning with a vote of 5-1, democrat Tommy Hunt was the lone magistrate against it...
Jury still out on Michigan's growth, lack of since becoming right-to-work state  WNEM.com   …Woods said right-to-work isn't creating jobs in Michigan. "Michigan still ranks in the top 10 states in unemployment rate at 7.1 percent," she said...
Rex Sinquefield’s million-dollar donation heralds new craziness in Missouri  Kansas City Star   ...many Missouri Republicans are very nervous about Sinquefield’s ostentatious bankrolling of his personal slate of candidates for the 2016 statewide ticket...
NJ AFL-CIO supports ‘Buy America’ bills  PolitickerNJ   ...Urgently needed legislation that will give American-made products and U.S. workers a fair shake in the domestic marketplace cleared another legislative hurdle on Thursday, December 11, when it was released by the Assembly Budget Committee...
GOP may seek last push for Pa. action  TribLive   ...[Pennsylvania] Lawmakers could make a final push to privatize state liquor stores, reform the public pension system and end government collection of union dues from paychecks — proposals Wolf opposes...
The Koch Wall Street Crusade To Rob Pensions Is Underway  PoliticusUSA   ...despite sending his state into an economic tailspin after squandering a budget surplus and cutting services to provide unimaginable tax cuts for the rich, Kansas governor Sam Brownback is robbing employee pensions to cover the state’s devastating budget shortfalls...
Koch brothers group files suit against Calif. AG, refuses to disclose donors  Legal Newsline   ...nonprofit group founded by the Koch brothers is challenging California Attorney General Kamala Harris’ threat to take its state tax-exempt status unless it discloses the identities of its donors...
War on Workers
Ruling Lets Work Email Be Used To Organize Unions  New York Times   ...Calling that ruling “clearly incorrect,” the current majority noted how technology had transformed daily habits. “The workplace is ‘uniquely appropriate’ and ‘the natural gathering place’ for such communications,” the board wrote, “and the use of email as a common form of workplace communication has expanded dramatically in recent years.”...
The Vanishing Male Worker: How America Fell Behind  New York Times   ...Working, in America, is in decline. The share of prime-age men — those 25 to 54 years old — who are not working has more than tripled since the late 1960s, to 16 percent. More recently, since the turn of the century, the share of women without paying jobs has been rising, too. The United States, which had one of the highest employment rates among developed nations as recently as 2000, has fallen toward the bottom of the list...
Wage Theft Costing Workers Millions of Dollars  RH Reality Check   ...The lost wages in those two states represent $20 million in lost income per week in New York and $29 million in lost income per week in California...
Construction Worker Killed After Roof Collapsed  WGTU   ...A 51-year-old West Branch man was killed after falling through the roof of a building...
Miscellaneous
Verizon's New, Encrypted Calling App Comes Pre-Hacked For The NSA  Bloomberg Businessweek   ...Verizon is the latest big company to enter the post-Snowden market for secure communication, and it's doing so with an encryption standard that comes with a way for law enforcement to access ostensibly secure phone conversations...

Today's Teamster News 07.18.13

Bangladesh Government Allows Workers To Form Unions  ThinkProgress   ...Bangladesh’s government approved a labor law on Monday that would make it easier for workers to form unions. The legislation also included provisions that create a fund to improve workers’ living standards and require companies to deposit 5 percent of profits into employee welfare funds...
License plate cameras track millions of Americans  Washington Post   ...The spread of cheap, powerful cameras capable of reading license plates has allowed police to build databases on the movements of millions of Americans over months or even years, according to an American Civil Liberties Union report released Wednesday...
The 1 Move That Could Suddenly Pull 300,000 Workers Out Of Poverty  Huffington Post   ...Legislation introduced in both the Senate and the House of Representatives could pull hundreds of thousands of the country's working poor out of poverty, according to a new study by the nonpartisan Center on Budget and Policy Priorities...
Barclays fights US electricity price manipulation fine through the courts  Guardian   ...Barclays has pledged to fight a $470m (£300m) penalty for allegedly manipulating electricity prices in California by taking the case through the US judicial system...
Jack Lew: Delaying Dodd-Frank Rules Raises Threat Of More Bank Bailouts  Associated Press   ...U.S. Treasury Secretary Jacob Lew says delays in writing rules to put the financial overhaul law into effect have raised the prospect that taxpayers might again have to bail out big banks that fail...
U.S. seeks new tactic in financial crisis prosecutions  Reuters   ... U.S. federal prosecutors are considering a new strategy for criminally charging Wall Street bankers who packaged and sold bad mortgage loans at the height of the housing bubble, according to a federal official familiar with the investigation...
IRS cancels one furlough day, cuts costs elsewhere  Reuters   ...The Internal Revenue Service said it was cancelling an agency shutdown that had been scheduled for Monday and required by federal budget cuts...
Big Money Makes State and Federal Politics Powerful (opinion)  New York Times   ...Art Pope invested heavily in local North Carolina elections, which ultimately resulted in the redistricting of 13 Congressional and 170 legislative districts...
Surplus celebrated as poverty grows (opinion)  Fort Wayne Journal Gazette   ...Around the same time state leaders were boasting that Indiana was closing its June books with $1.9 billion in reserves, a report from the Indiana Institute for Working Families was released showing poverty in Indiana is sharply increasing...
Statehouse gan throws Ohio in reverse (opinion)  Toledo Blade   ...The new state budget is equally regressive as economic and social policy...
Unions wage legal fight against Michigan’s right-to-work law  Washington Times   ...The legal battle over Michigan’s new right-to-work law shows no signs of flagging. Right-to-work proponents suffered a small setback when Michigan’s Supreme Court declined to weigh in on the legality of the law...
GOP Lawmaker In Utah Wants To End Compulsory Education In The State  Talking Points Memo   ...State Sen. Aaron Osmond (R) argued that certain "parents act as if the responsibility to educate, and even care for their child, is primarily the responsibility of the public school system..."
State Dept. approves ND-to-Alberta gas pipeline  Associated Press   ...The U.S. State Department has approved construction of the North Dakota portion of a gas pipeline from Tioga into the Canadian province of Alberta, Sen. John Hoeven said Tuesday...
CCA asks judge to bar media from joining lawsuit  Associated Press   ...Private prison company Corrections Corporation of America is asking a federal judge to deny a request from Idaho news organizations to keep documents open in a lawsuit over conditions at a CCA-run prison...
Teamsters Call For Quick Approval Of Administration Nominees  IBT ...Teamsters General President Jim Hoffa today congratulated Senate Leader Harry Reid for forging a compromise that allows consideration of nominees for key administration posts...
Port Truck Drivers In New Jersey Reject Company’s Lies And Vote YES To Form A Union IBT ...Truck drivers employed by Australia-based Toll Group at the company’s New Jersey division voted overwhelmingly – by a margin of nearly 70 percent – to form a union and affiliate with the International Brotherhood of Teamsters, Local 469...
Buffalo EMTs, Paramedics’ Victory Spotlighted On Leslie Marshall Show  Leslie Marshall Show   ...Kevin Drysdale, president of Teamsters Local 375 in Buffalo spoke with radio show host Leslie Marshall about new, tentative agreement for EMTs and paramedics working for Rural/Metro. Download the audio here...
City, Teamsters Find Common Ground With Approval of Long-Awaited Collective Bargaining Agreement  Shoreline-Lake Forest Park Patch   ...Lake Forest Park City Council unanimously approved a long-awaited collective bargaining agreement with the Teamsters Local 117 representing maintenance workers at its recent meeting...
PolyOne plans to close Donora plant  Pittsburgh-Tribune Review   ...On Tuesday, the PolyOne’s plant supervisors announced that the company will close its facility in Donora, Pennsylvania by fall 2014. Teamsters Local 205 represents the roughly 100 employees at the plant...

CEOs want to hide the wage gap between them and their workers

J.C. Penney's CEO earns 1,795 times more than the average employee for the retailer.

Abercrombie and Fitch pays its CEO 1,640 times more than the average worker.

At Simon Property Group, it is 1,594 times more.

These numbers are based on a Bloomberg News calculation that concludes CEOs on average take home 204 times more than their rank-and-file employees.

Three years ago, a provision in the Dodd-Frank financial reform law says the companies themselves have to reveal the difference between worker pay and CEO pay. That reform still hasn't been implemented. And now the CEOs' lobbyists are pressuring Republicans in the U.S. House of Representatives to repeal it.

On Wednesday, the House Financial Services Committee will consider legislation, HR 1135, that strips the wage-gap disclosure requirement from Dodd-Frank.

The CEOs are understandably embarrassed about the size of their plunder, especially when compared to the pittance they pay their workers. That's not their argument, though. They insist that calculating the CEO-to-worker pay ratio is too hard for them to do.

It is simply not credible for companies to say they don't know how to collect data or that it is too burdensome.

The Teamsters know from 100-plus years of collective bargaining that companies quantify a dollar cost for just about every aspect of work possible.

And as pension fund investors, we need the information required by Dodd-Frank to evaluate an investment. If a CEO is allowed to loot a company, the morale and productivity for its rank-and-file employees will suffer.

The Teamsters are one of more than 250 groups that make up Americans for Financial Reform (AFR), a coalition of labor, consumer, civil rights, investor, retiree, community, religious and business groups that came together to reform the financial industry. In a letter sent to lawmakers last month, AFR noted the passage of HR 1135 will shield CEOs from the shame that would come from the public learning about their outrageous compensation while axing an important provision of the law:

Disclosure of CEO-to-employee pay ratios will encourage Boards of Directors to limit CEO pay levels. Part of the CEO pay problem is that the existing disclosure rules encourage companies to focus on what other companies pay their CEOs. Because CEOs believe that they should be paid above average, this "groupthink" compensation process leads to ever-spiraling pay increases for CEOs.

 We need Congress to remain firm on implementing these fixes instead of gutting the law before it even has a chance to work.

Inequality in Renaissance Italy was nothing compared to today in America

The Medici family home. Today's CEOs are doing even better. 

Inequality in 15th century Italy was nothing like it is today.

Today, it's worse.

Visit the Renaissance palaces of Florence, Italy, and you'll be struck by the fairy tale extravagance of the leading family, the Medicis. You may ponder the unfairness of a system that allowed a lucky few to live in splendor while everyone else struggled to survive.

But consider this: At the turn of the 15th century, Giovanni di Bicci de Medici, the founder of the Medici family fortune, had an annual income of 1,900 florins. The average worker then earned less than 100 florins a year. So the richest guy in town earned 19 times what the average worker earned.

Standard and Poor's 500 CEOs today "earn" an average of 204 times as much as their workers.

A new report unveiled by Bloomberg states the now-former CEO at J.C. Penney Co. made 1,795 times more than the average worker at his stores (43,000 of whom were laid off last year). Meanwhile the CEO at Abercrombie and Fitch Co. made 1,640 times more than rank-and-file employees there.

It's getting worse: A survey of Standard and Poor’s 500 Index companies placed the average multiple of CEO compensation to that of their workers at 20 percent higher between 2011-12 and 2009.

The Bloomberg piece is the latest to show a growing gulf between those in corporate leadership and the employees who work for them. The AFL-CIO’s Executive Paywatch also details the soaring divide between executives and their workers.

While Bloomberg’s study on the topic is insightful, however, it is not a definitive measurement of the CEO-to-worker pay gap. The revamped financial service rules require reporting of CEO-to-worker pay gap numbers. That hasn't happened yet.

Almost three years after Congress ordered public companies to reveal actual CEO-to-worker pay ratios under the Dodd-Frank law, the numbers remain unknown. As the Occupy Wall Street movement and 2012 election made income inequality a social flashpoint, mandatory disclosure of the ratios remained bottled up at the Securities and Exchange Commission, which hasn't yet drawn up the rules to implement it. Some of America's biggest companies are lobbying against the requirement.

"It's a simple piece of information shareholders ought to have," said Phil Angelides, who led the Financial Crisis Inquiry Commission, which investigated the economic collapse of 2008. "The fact that corporate executives wouldn't want to display the number speaks volumes." The lobbying is part of "a street-by-street, block-by-block fight waged by large corporations and their Wall Street colleagues" to obstruct the Dodd-Frank law, he said.

The leading opponent of mandatory pay-ratio disclosure is a Washington-based non-profit called the HR Policy Association, which represents top human resources executives at about 335 large corporations.

Of course, we owe much to the corporate fat cats: the 40-hour work week, vacation, sick time, the middle class.

Oh wait, no we don't... 

Today's Teamster News 05.09.13

Court Bars Notice to Workers on Right to Unionize  New York Times   ...A federal appeals court on Tuesday struck down a National Labor Relations Board rule requiring most private sector employers to post a notice informing employees of their right to unionize...
US Under Fire over Privatization of Prisons  PressTV   ...Outside a correctional facility just a few miles from the US Congress, prison guards and rights activists gathered to speak out against the continued privatization of prisons throughout the US...
Death Toll Passes 900 In Bangladesh Factory Collapse  Associated Press   ...The death toll from a garment factory building that collapsed outside the Bangladesh capital has climbed past 900, as recovery workers continue pulling bodies from the wreckage more than two weeks after the disaster...
Study: U.S. taxpayers employ more low-wage workers than Wal-Mart, McDonald’s combined  Washington Post   ...Federal taxpayers employ more low-wage workers than Wal-Mart and McDonald’s combined, a new study calculates...
Elizabeth Warren: Trade talks could weaken bank oversight  Politico   ...Elizabeth Warren raised concerns Tuesday that negotiations over new trade agreements could be used as a backdoor way to water down financial regulations. Speaking at a Senate confirmation hearing for Export-Import Bank President Fred Hochberg...
Sanford victory could spell trouble for House GOP leadership  The Hill   ...Former South Carolina Gov. Mark Sanford (R) is heading back to Congress — and that may not be good news for House GOP leadership...
Legislative package seeks to weaken derivatives provisions of Dodd-Frank law  Washington Post   ...Nearly three years after Congress passed the Dodd-Frank financial law to limit risky activities on Wall Street, a series of bills could weaken regulation of derivatives — the exotic securities that helped fuel the crisis...
California set to fine utility $2.25 billion for deadly pipeline failure  CNN   ...California regulators recommended a record $2.25 billion fine for the state's largest utility Monday in the 2010 gas pipeline explosion that killed eight people in a San Francisco suburb...
California Farm Workers Fired for Leaving Fields During Wildfire  NBC4   ...More than a dozen farm workers in Southern California were out of a job after walking out of the fields last week, forced indoors because of heavy smoke from a massive wildfire burning nearby...
TSA knife rule: would an airborne fistfight been worse?  Washington Post   ...Seems a serious fistfight broke out in the first-class section of an American Airlines flight last week. “They were actually throwing punches,” Army Brig. Gen. Jason T. Evans told a local television reporter. “It was actually a fight,” Evans said. Might have been worse if they’d pulled out their knives, but of course knives aren’t allowed on airplanes...for now...
Washington State Has Third Fewest Workplace Deaths for 2011 NBC KNDO 23   ...Washington state ranks third in the nation for having the fewest workers killed on the job in 2011...
Minnesota Senate approves 'modest' minimum wage hike   Star Tribune   ...The Minnesota Senate on Wednesday approved a minimum wage hike that could give 200,000 a raise. The measure, passed on a 39-28 vote, would raise the minimum wage to $7.75 an hour by 2015...
Pa. high court upholds redrawn legislative maps  Associated Press  ...A revised plan to redraw the boundaries of Pennsylvania's legislative districts won the unanimous approval Wednesday of the state Supreme Court, which rejected renewed appeals by citizen challengers and Democrats who argued the plan...
Surprise fast food strike planned in St. Louis  Salon   ...For the third time in five weeks, non-union fast food workers in a major American city are scheduled to strike for higher wages and the chance to form a union without intimidation... 
NY officials vow attack on predatory debt-fixing  Associated Press   ...Federal authorities announced a crackdown Tuesday on predatory businesses that cheat "desperate and vulnerable" people harmed by the 2008 financial crisis with phony promises to consolidate their debt...
Iowa Senate rejects voter ID proposal  Des Moines Register   ...The Iowa Senate Tuesday night rejected a Republican-sponsored amendment to require Iowa voters to show a photo identification when they are voting. The effort failed on a 26-24 vote with Democrats against and Republicans in support...
NM legislators receive pensions, but no salary  Associated Press   ...Voters booted Republican Dan Foley from office after a decade in the New Mexico Legislature, and within months he began collecting taxpayer-financed pension benefits — even though he was only 39 years old...
$667M in business tax cuts advances in Texas House  Associated Press   ...A major tax bill proposing $667 million in breaks for Texas businesses cleared the state House on Tuesday night against the backdrop of Gov. Rick Perry demanding muscular tax relief as the Legislature enters a furious final three weeks...
Teamsters Honor 150 Year Anniversary Of The Brotherhood Of Locomotive Engineers And Trainmen   IBT ...The following is a statement by Teamsters General President James P. Hoffa and General Secretary-Treasurer Ken Hall on the occasion of the 150th anniversary of the founding of the Brotherhood of Locomotive Engineers and Trainmen...