The Illusion of NEW Jobs for DC

As Co-Director of The National Capital Jobs Coalition I am legitimately concerned about new jobs for residents of The District of Columbia.  Why then, am I opposed to the influx of new Walmart stores here in DC?  

There Will be NO NEW JOBS! 

After studying the company’s record, operating history and reviewing economic and demographic studies I oppose WalMart for a number of reasons.  The principal claim made by supporters is that these stores will mean decent jobs for the residents of our city.  The truth , according to local economist Michael Siegel, and supported by other independent studies in Chicago and elsewhere, is that although Walmart  claims to bring 1200 jobs to DC.  In fact it will cost our City 1,600, a net loss of 400 jobs.  Even a casual inquiry will reveal a history littered with broken promises of jobs and prosperity.  In fact what Walmart provides and what our politicos are buying is the illusion of jobs.  

 The WalMart Record is Appalling

Walmart, as a matter of policy under pays and overworks the majority of its employees.  The Walmart jobs available to city residents will be minimum wage and mostly part time.  The company maintains its extraordinary profit margins by a systematic policy of worker exploitation, a statement supported by the record. Walmart intentionally under staffs their stores forcing low paid employees to work harder and longer without overtime and even unpaid off-the-clock.

WalMart Has a History of Unethical Behavior

I also oppose Walmart on ethical and moral issues.  Walmart has been repeatedly sued for unethical and unlawful business practices.  Wal-Mart has paid millions to settle class-action lawsuits that asserted Wal-Mart employees have been forced to work off-the-clock.   The plain truth is that most jobs open to DC workers will not be jobs at all, but in fact will be little more than subsidized servitude. This is worker exploitation in its worst form and a most bitter pill to those who so badly need legitimate jobs to support and raise their families.

 Walmart Puts Workers on Food Stamps

As a matter of policy Walmart has employees apply for Food Stamps and Medicaid, thus forcing the municipalities in which it operates to support Walmart’s overhead.   To the politicians and others who tout the benefits of Walmart and to the citizens of our city who support them.  I repeat the old adage: “Be careful what you wish for … you may get it.”

WalMart: The Illusion of Jobs

WalMart Launches Full-Scale Assault on The District
By now we all know that WalMart is coming.  They are coming in force and with a vengeance.  They have targeted three locations.  They have opened an office here and are holing meetings and makeing the rounds of the ANC's and actively lobbying City Council.  Some people, Council Members among them, believe that WalMart will be good for DC.  Please let me assure you, nothing could be further from the truth.  In fact WalMart is a predator.  They are like commercial vampires sucking the life out of small businesses and wholesalers.  WalMart is business bomb that decimates the communities in which they locate.  For every job the company creates, it costs the community more than 2 existing jobs.  WalMart, the store that trumpets its patriotism is effectively a wholesaler for China.  It buys almost exclusively from China Inc.  WalMart, the champion of Religious values honors only one god ... Money.  It pays well under prevailing wages ... 30 percent of its employees are part time.  it artificially inflates salaries by locating highly paid regional staff at its stores, bumping up the payroll.    Everyone is entitled to their own opinion, but not their own facts.  WalMart is a corporate liar.  It is company policy.

Walmart Employees on Food Stamps
In fact, WalMart recognizes the poverty in which it places employees.  It has a manager whose job is to help the employees apply for food stamps.  Finally, WalMart has demonstrated that it engages in active decption of the communities in which it locates.  They will make many promises, but they do NOT live up to them.  They will never sign a community benefits agreement because they have no intention of ever honoring it.  They will not submit themselves to a contactual agreement because it has the force of law behind it.  WalMart's intention is to deceive, to get in the door so they can put their avaricious hands into our pockets and take our money and as brother Ray said, "...take it back to Arkansas."  How can you tell when a WalMart executive is lying?  His lips are moving.

First Source: Key Issues

Active and Engaged Implementation, Enforcement, and Monitoring

The following are critical elements, we believe necessary to assure effective implementation and compliance with both the letter and spirit of the NEW First Source Legislative effort. The new law (amended) goes a log ways toward redressing the old grievances, but ... and the word is BUT ... without the provisions and regulations we outline here, it will become too easy for those who would do so (70% of DC foreign companies do not now comply even with the palid provisions of the esiting legislation) ot circumvent and nullify this well intentioned legislative effort.

a.     We expect contractors and construction firms and all those covered by First Source to engage in a pro-active regimen of compliance with both the letter and spirit of the law.  This means …

                                               i.     Establish a First Source Compliance Officer position within the organization.

                                              ii.     Draft and submit for approval a First Source compliance plan (FSCP)

1.     This plan must include both business processes and procedures along with an audit and reporting schedule.

2.     In addition, a file containing copies of W4’s and Drivers Licenses for all workers on the site.  File is to be immediately available to auditors on demand

                                            iii.     Develop and maintain as part of the FSCP, a First Source Remediation Plan that explains in some detail how the organization will remediate non-compliance issues.

2.    Engaged Enforcement

a   The Deputy Mayor for Ecomomic Development now has jurisdiction over the First Source Agreement.  Will he have sufficient budget and resources to accomplish these provisions, given the current fiscal crisis?  We shall see ...Active enforcement needs to be a priority here.

                                               i.     Posting adjacent to the organizations logo and sign a placard of similar size to be easily visible from passing traffic.  This sign shall display the fact that a First Source requirement exists for this company. 

                                              ii.     A separate but equally visible sign shall also display the number of workers on the site, as of last audit, with confirmed DC residential status  and of equal size and position, the number of out of city workers presently employed on the site.

b.    Prohibitive Penalties

                                               i.     In addition to claw back provisions and invoice payment suspension suggested elsewhere , it is essential that penalties are meaningful and have sufficient economic consequences to be taken seriously.

1.     For each percentage point under compliance the company shall be prohibited from biding on city contracts for “n” months.

2.     For every pay period a Payroll report shall automatically be generated using original source documents. The reports shall be directly generated by the organizations payroll system

3.     Any failure to comply such as a workers whose city documentation proves invalid, will generate a $10,000 fine for the first infraction and it doubles for all subsequent violations on each project.

4.     Penalties for failure to respond promptly also need to be substantive.

5.     Finally, three penalties for a single contractor on any one project will result in a one-year suspension from qualified bidding on city projects.

NCJC Looks at First Source, Second Chance

The NEW First Source Law

District of Columbia Workforce Intermediary Establishment and Reform of First Source and Living Wage Amendment Act of 2011

NCJC has reviewed the new First Source Law as amended by Council members H. Thomas, M. Brown and Chairman Kwame Brown.  This law looks like a good strategic approach to establishing DC worker primacy at all DC supported businesses in the District.  Here’s what we like and what we don’t like.

• The law eliminates the “percent of new hires strategy” and substitutes it with percentage of hours worked.  This is good because it will be much harder to fudge those numbers based upon reported payroll.

• Workforce Intermediary Task Force – Mayor Gray is directed to form a task force to investigate “best practices” in other cities who have such laws and to report back for inclusion in the enforcement and implementation of the law..
• We want to see more citizens on the task force and fewer city officials.
• Workforce Intermediary Program – 2 months from the end of the task force work, a program called the Workforce Intermediary Program will be set in place.  It will meet with and structure the individual relationships with prospective businesses covered under the First Source legislation.   If First Source will have the force of law behind it then, this will be excellent. 
•  Establishment of a District of Columbia Jobs Trust Fund – This will be funded by donations etc., but will also receive funds levied as fines and penalties on those who disobey the new First Source Law.    
• fund will be used to pay for enforcement and implementation of the law.Important – The Fund will be protected from scavenging by the general fund, or appropriation for any other purpose.

5.     We do not like the present practice of DCES being the source for companies looking for qualified workers here in DC.  A central data base needs to be built that registers workers and qualifications in a standard format, so that employers can find DC residents with the job skills they want.

As with all such legislation implementation and enforcement will be key.   If the fund is used for that purpose and employers are on notice that this will happen, then it will level the playing field and compliance will be much easier to assure.  Note: This is a brief summary of the plan a more detailed assessment will be forthcoming.

 .

The March for Jobs and Justice

NCJC has been asked to participate in the First Annual March for Jobs and Justice organized by Dr. Paul Zeitz, Physician and Global Activist.  Jerry Peloquin and Linwood (Gato) Martinez-Bentley, Co Directors of NCJC have been asked to serve on the organizing and platform committee as well.  The March will start at the Martin Luther King Memorial Site at 10:00 AM on Monday, January, 17, 2011 and proceed to the site of his famous, "... I have a dream," speech on the National Mall at 11:00.

Mark this event on your datebook ... it will be an historic bookmark in the annals of human rights and jusitice.

The movement has three fundamental points of focus:  Economic Justice, Electoral Justice, and Health  Justice.  We plan to meet with the team later today and will post here as soon as we have more information Here is the website: http://justicemovementnow.net

What We've Accomplished

Well, we ain't done bad folks!  We started with a pure volunteer effort, (still is) with absolutely no budget and no name recognition.  Accomplishments to date:   Not in Order!

1. Formation of The National Capital Jobs Coalition,  Creation of a Platform including: a)mission statement, b) objectives program planks, c) strategic approach. 3) Establishment of an Executive Committee with five meetings conducted. 
2. A free meeting environment and headquarters at The National Graduate Univeristy. 
3.  Strategic meetings with Council Committee Chair's Legislative Director with written in put and acceptance for legislative action, 
4. Outreach meetings with ONE DC, JobsWithJustice and others, 
5. Provision of testimony before two Council Committee Hearings of Housing and Workforce Development. 
6. A Public Education Job Action At the Bozouto RI Ave. Job Site. 
7. Conduct of First Source, Second Chance event attended by key Council legislative staff, Union Leaders, and community members.  
8. Creation of a name, logo, and brand ...!!) 
9. Establishment of an NCJC Blog: dcfirstsource@blogstpot.com

We suggest we hold a meeting the second week in January.  The purpose will be to update alliances and coalition members, to set forth the schedule for the next seven First Source, Second Chance meetings and to put together the planning committe for the DC Reunited Event in late April/Early May of 2011.

NCJC SUBMITS TESTIMONY TO CM BROWN'S WORKFORCE DEVELOPMENT ROUNDABLE

200 Journey worker Electricians out of a job because of cheating contractors an a lousy city enforcement and legislative ineptitude.

I believe it was Thomas Jefferson who said, "... My country right, keep it right, my country wrong, make it right.  DC is wrong!  it is up to us, its citizens to ....MAKE IT RIGHT1  It is plain wrong to have thousands of DC workers drawing unemployment when they could be gainfully employed and producing tax revenue to offset the present horrendous budget shortfall.  When will they EVER learn!

The excuse for NOT hiring DC workers has been,"... They don't have the skills necessary."  Well, yesterday we had twenty journeymen Electricians many of whom testified about how contractors skirt the law be duplicitous hiring practices and how, with all these millions of dollars in construction going on here in the city

The following testimony.  It was delivered by Linwood Martinez (Il Gato) Bentley, Co Director of The National Capital Jobs Coalition.  It was given to Council member Michael Brown, at large and his Housing and Workforce Development Committee hearing on Jobs Creation.

My name is Linwood  (Il Gato) Martinez-Bentley; I am Executive Director of The National Capital Jobs Coalition.  I was born here in The District.  I’ve taught in the DC Public school system and have been a social activist and advocate. I was a teenage participant in the struggle in the mid sixties for Civil and Human Rights as well as self-determination for our nation’s capital, the struggle continues.  Without decent paying jobs there is no prospect for a productive life for anyone in the neighborhoods of this City. 

The National Capital Jobs Coalition was founded upon two pillars.  These two pillars must be part of the foundation for any revitalization of Washington, DC.  The first is an effective and enforced first Source Law.  We do not have such a law at present.  The second is the creation of new green industries to employ our people in the neighborhoods and communities of The District.

Although there are a number of groups and organizations advocating for Jobs and for First Source improvements, most advocate for other issues as well, health care, gender issues, children’s rights, educational advocacy, organized labor, etc.  The National Capital Jobs Coalition speaks with one voice.  We speak for the vast unemployed and underutilized human capital of this city.  We stand side by side with our constituents and we ask all who support this effort to join us in solidarity. 

This is our Mission Statement:

The National Capital Jobs Coalition (NCJC) organizes, actively supports, and advocates for the creation of just, decent paying, jobs-with-a- future for the residents of The District of Columbia.

The Coalition Platform:

Washington, DC is a geo-political and economic center.  It is a significant commercial hub as well.  Here in the District is where much of the business of the nation and the world is centered.  Unfortunately most of these jobs are not accessible to DC residents.  Non-residents of the District of Columbia fill 70% of these living-wage jobs.  Economic opportunity for the citizens of The District cannot continue to be a second - or even a third- tier priority for our city government.  We believe that the under funding and inattention to the as WIC as noted in the committee’s report, is prima facie evidence of that neglect

Trinidad and Ivy City lie in the shadow of the nation’s capitol, but they have more in common with third world countries than the headquarters of global politics and governance. This is not the world of our communities and neighborhoods. The DC of power and affluence is not the DC of 40% unemployment and the blight of abandoned buildings, poverty, despair, and social disintegration.  The old top-down jobs programs no longer work.  These temporary jobs and make-work projects are ineffectual band-aids on the gaping wound of urban poverty.  Job training programs for non-existent jobs are a cruel joke of political expediency.  DC communities need new, creative, and innovative strategies, not old failed solutions with new names. 

As a first step the DC Government needs to accept the fact that large development projects are a principal source of economic development, and must ensure that the benefits of these developments accrue to all the citizens of our city. 

Given our platform we would like to make the following points and in this order.  First Source first, then Workforce Development.

First Source:

We realize that this is a long-term contest and that we fully expect to stay engaged as long as necessary.  As to specifics we have three principal issues to address, both as advocates here in the halls of government and as activists out in our communities.  These are the three issues:

1.    Active Compliance

2.    Engaged Enforcement

3.    Prohibitive Penalties

For the sake of brevity, I will leave the specific recommendations to my written testimony.  Here are some general comments relative to these three issues we intend to pursue.

The first is Active Compliance.

We expect contractors and construction firms and all those covered by First Source to engage in a pro-active regimen of compliance with both the letter and spirit of the law.   This means designation of a First Source compliance officer to provide a single source responsibility within the organization.

Second, we will also expect Engaged Enforcement.  The office of First Source compliance within DOES should have a right to expect contractors and construction firms and all those covered by First Source to engage in a pro-active regimen of compliance with both the letter and spirit of the law.   This means open posted statistics regarding the companies present compliance states including other appropriate signage and postings to inform the public about First Source compliance.

Now the third and final issue, we will aggressively advocate for Prohibitive Penalties to assure that there are substantial consequences for evasion.  In addition to claw back provisions and invoice payment suspension in the present amendments, it is essential that penalties are meaningful and have sufficient economic consequences to be taken seriously.  This should included possible contract cancellation and prohibition on future city contract bidding.

Now our comments on Workforce Development

We believe our Workforce here in the city neighborhoods has been failed by society from the very top to the bottom.   With 30 to 40 percent virtually illiterate, the commercial sector uses that as an excuse to avoid and avoid our laws on hiring DC citizens.  Our position is that literacy can be taught on the job and that if the training is properly designed, literacy should not be a barrier to many procedural jobs.  In this city the unemployment rate for persons of color with a high school education or, GED is around 20%, for those without such a certification it is only 19%.  In this city there is no premium for a high school education.  We believe a strong public private partnership needed.  It should be similar to the Japanese Keiretsu.

In fact it would be a Social Keiretsu.   This could also address another much ignored issue: Jobs Creation.  As we mention in our platform, we need to stop training people for jobs that do not exist.  The incubator of any economy and the major source for new job creation is the small business.  We need a comprehensive program to identify community needs and to encourage through funding and training, poor people to start and run their own businesses in the neighborhoods.

With that I conclude our testimony.  I thank the chairman for this opportunity and we look forward to working with DOES, This Council and anyone else who shares our passion for this city and its residents.

Respectfully Submitted

______________________________________________

Linwood Martinez-Bentley

Executive Director

The National Capital Jobs Coalition