Category: employment

Least Surprising News of the Day

Eric Cantor gets is back loaded bribe, because, after fighting financial reform tooth and nail, he will now make millions of dollars at a Wall Street firm:

Former House Majority Leader Eric Cantor (R-VA), who resigned last month after losing renomination to an underfunded college professor, spent much of his 13-plus years in the U.S. Congress advancing the agenda of Wall Street investment firms. This week, he announced that he will be joining a Wall Street investment bank as its new vice chairman.

Cantor will be joining Moelis & Co., the investment bank said, to “provide strategic counsel to the Firm’s corporate and institutional clients on key issues,” to “play a leading role in client development,” and to “advise clients on strategic matters.” The announcement press release praised Cantor as a “leading voice on the economy and job creation,” who worked in Congress “to lower taxes, eliminate excessive regulation, strengthen small businesses, and encourage entrepreneurship.” The deal reportedly includes a $1.4 million signing bonus and at least a $2 million annual compensation package.

Moelis and Co. will not get a value of $2 million a year from Eric Cantor, but that is not the purpose of their offer to him.

The purpose of their offer to him is to show people who are still in Congress that, if they play nice with the banksters, then when they retire, whether voluntarily or involuntarily, they will be set for life.

It’s the proverbial offer they cannot refuse.

StudentsFrist Rhee-Boots

Or more accurately, it boots the doyenne of educational grifters, Michelle Rhee:

Michelle Rhee had big ambitions when she went on Oprah four years ago to launch her new advocacy group, StudentsFirst, with a promise to raise $1 billion to transform education policy nationwide.

But as she prepares to step down as CEO, she leaves a trail of disappointment and disillusionment. Reform activists who shared her vision say she never built an effective national organization and never found a way to use her celebrity status to drive real change.

StudentsFirst was hobbled by a high staff turnover rate, embarrassing PR blunders and a lack of focus. But several leading education reformers say Rhee’s biggest weakness was her failure to build coalitions; instead, she alienated activists who should have been her natural allies with tactics they perceived as imperious, inflexible and often illogical. Several said her biggest contribution to the cause was drawing fire away from them as she positioned herself as the face of the national education reform movement.

“There was a growing consensus in the education reform community that she didn’t play well in the sandbox,” one reform leader said.

That last bit is pretty much the story of her career:  Walk into a room, kiss up, kick down, and do everything possible to ensure that her name is in the lights.

I do wonder what her next con-job will be, though.

Pass the Popcorn

The judge reviewing the collusion among Silicon Valley firms to suppress high tech wages has just ruled the settlement to be inadequate:

The judge overseeing the landmark Silicon Valley wage theft antitrust lawsuit has struck down the $324 million settlement reached between most of the class action plaintiffs and the defendants — Apple, Google, Intel and Adobe.

In her 32-page order striking down the settlement terms, issued just moments ago, US District Judge Lucy Koch writes:

“This Court has lived with this case for nearly three years, and during that time, the Court has reviewed a significant number of documents in adjudicating not only the substantive motions, but also the voluminous sealing requests. Having done so, the Court cannot conclude that the instant settlement falls within the range of reasonableness. As this Court stated in its summary judgment order, there is ample evidence of an overarching conspiracy between the seven Defendants…”

This is stunning news, and it means that we still may get a trial after all, and learn more about the Techtopus wage theft conspiracy.

Judge Koh bases her rejection by comparing the $324 million sum to the earlier settlement in 2013 with three other defendants in the wage-theft lawsuit: Intuit, LucasFilm and Pixar. Judging by that metric, Judge Koh argues that the settlement figure should have been at least $380 million. She also cites the “strength” of the plaintiffs’ case against the Big Tech defendants, and rejects the plaintiffs’ attorneys’ argument about the difficulties in winning an antitrust wage theft lawsuit of this scope.

This should get interesting for a number of reasons:

  • The documents make it pretty clear that the plaintiffs’ claims are airtight. (They also prove that Steve Jobs was a sociopathic @sshole, but that has been common knowledge for decades within the tech sector)
  • If the case proceeds, discovery should create even more damning information.
  • The blatant illegality of the behavior is such that the insurance carriers for the tech firms may end up suing them, claiming that the behavior is covered under the “deliberate acts” exclusions that almost all liability insurance policies contain.

This should be entertaining.

Today’s Episode of Not Surprised at All: CEO Pay Edition

It turns out that there is No relationship whatsoever between a CEO pay and performance:

With all the public chatter about exorbitant executive compensation and income inequality, it’s useful to look at the relationship between chief executive officer pay and corporate performance. Typically, when the subject of their big pay packages arises, CEOs—usually through their spokespeople—say they are paid for performance. Does data back that up?

An analysis of compensation data publicly released by Equilar shows little correlation between CEO pay and company performance. Equilar ranked the salaries of 200 highly paid CEOs. When compared to metrics such as revenue, profitability, and stock return, the scattering of data looks pretty random, as though performance doesn’t matter. The comparison makes it look as if there is zero relationship between pay and performance.

Actually, it’s on the order of 1%, and certainly not worth it. (Click on the image for a better view of the trend line)

The cult of the overpaid CEO has no basis in reality.

It’s  all a game where one hand washes the other.

Hoocoodanode?

The Navy’s Mania for Reducing Crewing Bears Bitter Fruit

The US Navy has discovered that the limits of human endurance have been reached, and surpassed, in the Littoral Combat Ship:

Did you ever work a job that required two people, but your stingy employer insisted that one was enough? Then you understand the problem with the Navy’s Littoral Combat Ship.

One of the LCS’s supposed advantages is its much smaller crew compared to other vessels. Where a Navy frigate might have 200 sailors, the frigate-size LCS has just 40—although, to be fair, two different 40-person crews take turns running the ship.

LCS is a jack-of-all-trades warship that can carry different modules for various missions—anti-submarine warfare, surface warfare or mine-hunting.
The idea was that automation would enable fewer sailors to operate the $400-million LCS for all these missions. This saves on manpower costs as well as on precious shipboard space for crew accommodations.

But a new Government Accountability Office report proves what any Burger King worker already knows—cutting your workforce by 80 percent without also decreasing its workload … isn’t always a great idea.

When the GAO studied USS Freedom’s recent 10-month deployment to Singapore, the auditors found that crews worked too hard. “Freedom crews averaged about six hours of sleep per day compared to the Navy standard of eight hours,” the GAO stated.

“Some key departments, such as engineering and operations, averaged even fewer.”
And this happened despite the Navy temporarily adding 10 extra sailors to the crew and sending contractors aboard.

Also note that with short crewing like this, damage control is marginal, there are no reserves to allow the crew to continue operating the ship while performing repairs, so this ship is likely to have a glass jaw.

This is particularly troubling, as it will be operating in coastal waters, the threats are varied, everything from shore based defenses to guys in Zodiacs packing RPGs.

And the Hobby Lobby Decision Has Already Started to Bear Bitter Fruit

We now have the usual group of rat-f%$#s, including Rick “Invited by Obama to giva a benediction at his first inaugeration” Warren, are demanding the right to discriminate against LGBT employees:

This week, in the Hobby Lobby case, the Supreme Court ruled that a religious employer could not be required to provide employees with certain types of contraception. That decision is beginning to reverberate: A group of faith leaders is urging the Obama administration to include a religious exemption in a forthcoming LGBT anti-discrimination action.

Their call, in a letter sent to the White House Tuesday, attempts to capitalize on the Supreme Court case by arguing that it shows the administration must show more deference to the prerogatives of religion.

“We are asking that an extension of protection for one group not come at the expense of faith communities whose religious identity and beliefs motivate them to serve those in need,” the letter states.

I am so ready for Antonin Scalia to choke to death on his own bile and be replaced by a justice who is not an unethical hack.

Letter follows:

Religious Exemption Letter to President Obama

And This Decision is a Camel’s Nose Under the Tent

In Harris v. Quinn, the Supreme Court ruled that home healthcare workers who are not members of a union do not have to pay dues for the services received.

It is better than could be expected, since they could have applied this to all public sector unions, effectively going right to work nationwide.

What I do think is that it is clear that this, along with an earlier decision, Knox v. SEIU, are an attempt to reverse the National Labor Relations Act via the death of 1000 cuts.

Eventually, assuming that the current 5-4 reactionary judge/real judge split remains in place on the Supreme Court, they will be making it  impossible for labor unions to function in the United States for the next decade.

This is partisanship masquerading as an impartial judiciary.

Yes, Hobby Lobby is Almost Dredd Scott* Bad

The basic decision is completely incoherent and contradictory.

The gist of the decision is that private corporations can ignore basic regulations if they are “sincerely held beliefs,” whatever the f%$# means, which ignores decades of jurisprudence which slapped down various flavors of bigots, sexists, and nut-jobs who have attempted to use religion to avoid following civil law.

They say that this is so because to quote Mitt Rmoney, “corporations are people too.”

They say that it only applies to “closely held” corporations, (fewer than 5 people holding over half of the equity in the firm) but provide no real explanation for why it should so be limited, and they do not explain why it does not, for example, apply to multibillion dollar corporations like Koch industries.

Furthermore, they say that it applies only to contraception, and not, for example, to the JW’s objection to blood transfusion or vaccination, but again, they simply say this, and provide no real justification:

This decision concerns only the contraceptive mandate andshould not be understood to hold that all insurance-coverage mandates, e.g., for vaccinations or blood transfusions, must necessarily fall if they conflict with an employer’s religious beliefs. Nor does it provide a shield for employers who might cloak illegal discrimination as a religious practice.

Basically, it only applies to contraception, because we care about what Catholics and right wing Evangelicals think, but not (Mercy!) Jehovah’s Witnesses.

What’s more, they redifine the definition of corporations to justify their opinion:

In other words, the Court has changed, definitionally, what it means to be a corporation under the state laws in question.

The existential condition of separateness is true even with closely held companies. The largest such companies – Cargill, Koch Industries, Dell, Bechtel, and Aramark, to name just a handful – have tens of thousands of employees and billions of dollars of revenue. (In 2008, Forbes reported that the 441 largest closely held companies employed more than 6 million people and enjoyed $1.8 trillion in revenue.) They are created under the same understanding of a wall existing between shareholders and the company. They could indeed not exist otherwise – the potential liability to individual investors would simply be too great.

So in evaluating whether Congress intended the word “person” in RFRA to cover corporations, the most reasonable assumption is that the states creating such entities intended such separateness and that corporations should not carry the rights of their shareholders. To assume otherwise flies in the face of decades, indeed centuries, of corporate law assumptions.

The Court makes a second corporate law mistake. In arguing that for-profit companies can have religious purposes, the Court makes hay from the fact that state incorporation statutes typically allow businesses to be chartered for any “lawful purpose or activity.” The Court uses this corporate law truth to argue, as a descriptive matter, that some corporations in fact engage in behavior that is in conformity with the religious views of their shareholders.

………

Indeed, I will not be surprised if we see, in the coming weeks, a host of closely held corporations – and a few publicly traded ones – asserting the right to discriminate against LGBT job applicants, employees, and customers notwithstanding various state laws to the contrary.

This is an unbelievably bad decision, and, unless the Congress revokes the Religious Freedom Restoration Act (the justification for the ruling), we are in for decades of counter productive anti-American religious zealotry.

This is a horrible decision, and if it had been made at the federal court level, we would assume that it would have been overturned at the appellate level before the ink was dry.

*Dred Scott v. Sandford. If you need this link, read some f%$#ing history.
I dunno. Maybe they do want it apply to Koch industries.

I Had an Epic Day at Work Today

I generally embargo anything that happens at work, on the theory that it’s my employer’s business, and with a few exceptions, blogging about is just not a good idea.

However, what happened today breaks this embargo:

John at work came in limping today.

He had a Brown Recluse bite on his leg, and he said that the doctor had prescribed steroid and Sulfa drugs (probably Dapsone).

I told him that he should drink lots of water, because Sulfa drugs tend to accumulate in the kidneys.

Then as I was walking away, I turned and said:

Wait for it…

Wait for it…

Wait for it…

Wait for it…

Wait for it…

Wait for it…

Wait for it…

Wait for it…

You know where this is going, don’t you…

Wait for it…

Wait for it…

Wait for it…

Wait for it…

I’m an Engineer, not a Doctor, Dammit!!!!!!

I haz a happy!

But Remember, By Law this Vote is Non-Binding

Following an abysmal performance, Chipotle shareholders voted against pay raises for senior executives:

Investors in Chipotle Mexican Grill voted overwhelmingly on Thursday against the company’s executive compensation plans, sending a strong rebuke to a company that had awarded more than $300 million to its co-chief executives in recent years.

More than 75 percent of investors voted against Chipotle’s say-on-pay measure, which asked investors to ratify a compensation plan that would continue such payments to Steve Ells, Chipotle’s founder, and his co-chief, Montgomery F. Moran, over the next few years. That was the highest vote against any say-on-pay measure among the country’s largest 3,000 companies this year.

Though the vote is nonbinding, Chipotle said it was taking investor sentiment into consideration.

“We take this very seriously,” a Chipotle spokesman, Chris Arnold, said in a statement. “It has always been, and continues to be, a top priority that our compensation programs are driving the creation of shareholder value. We thank our investors for the feedback we have received on this issue and will continue to engage with our investors as we review our compensation programs that build value for all of our investors.”

Shareholder discomfort with Chipotle’s multimillion-dollar executive compensation plans has grown. At last year’s meeting, 27 percent of shareholders voted against the say-on-pay measure. But in recent months, smaller investors, including the CtW Investment Group, have lobbied big institutional investors to join them in trying to rein in Chipotle’s executive pay.

Note however, this is a non-binding vote.

Binding shareholder votes on executive pay are forbidden by US law.

H/t Crooks and Liars.

Shorter New York Times, “We Pay Bros More than Ho’s”

It was announced today that the New York Times fired Jill Abramson as executive editor.

It appears that this was largely because she complained when she discovered that her pay was significantly less than her predecessor, as well as one of her (male) subordinates:

As with any such upheaval, there’s a history behind it. Several weeks ago, I’m told, Abramson discovered that her pay and her pension benefits as both executive editor and, before that, as managing editor were considerably less than the pay and pension benefits of Bill Keller, the male editor whom she replaced in both jobs. “She confronted the top brass,” one close associate said, and this may have fed into the management’s narrative that she was “pushy,” a characterization that, for many, has an inescapably gendered aspect. Sulzberger is known to believe that the Times, as a financially beleaguered newspaper, needed to retreat on some of its generous pay and pension benefits; Abramson, who spent much of her career at the Wall Street Journal, had been at the Times for far fewer years than Keller, which accounted for some of the pension disparity. Eileen Murphy, a spokeswoman for the Times, said that Jill Abramson’s total compensation as executive editor “was directly comparable to Bill Keller’s”—though it was not actually the same. I was also told by another friend of Abramson’s that the pay gap with Keller was only closed after she complained. But, to women at an institution that was once sued by its female employees for discriminatory practices, the question brings up ugly memories. Whether Abramson was right or wrong, both sides were left unhappy. A third associate told me, “She found out that a former deputy managing editor”—a man—“made more money than she did” while she was managing editor. “She had a lawyer make polite inquiries about the pay and pension disparities, which set them off.”

Of course, Abramson was good for business, and the paper is “financially beleagered” Sulzberger decided to build a palatial new headquarters for the paper, and use very short term debt to finance this, which required a refinance at junk bond rates from Mexican crony capitalist Carlos Slim, and a sale-leaseback of $¾ million square feet in their headquarters.

Arthur Sulzberger, Jr. is letting his sense of entitlement show.

This is Symptomatic of a Crisis in the Culture of the Military

Air Force pilot Joshua Wilson, who blew the whistle on problems with the F-22 oxygen system, is having his career systematically destroyed in retaliation:

The Air Force has spent tens of millions of dollars over the past two years correcting problems with its premier jet fighter – issues that Capt. Joshua Wilson helped expose by speaking up, both to his bosses and on national television.

Since then, Wilson’s career as an F-22 Raptor pilot has stalled. A member of the Virginia Air National Guard’s 149th Fighter Squadron, Wilson hasn’t been permitted to fly the jet since early 2012. He’s fighting disciplinary actions that he sees as retribution for going public.

“I’m a fighter pilot. I worked my entire life to get in the cockpit and to that job,” said Wilson, who is 37. “Right now, I’m fighting the Air Force when I should be fighting our enemies.”

Almost two years ago, Wilson and Maj. Jeremy Gordon told CBS’s “60 Minutes” that the F-22 had a defective oxygen system that was endangering pilots.

The veteran aviators, dressed in their Virginia Air National Guard flight suits, shared their personal accounts of mid-flight oxygen deprivation that left them disoriented. Other pilots had similar life-threatening experiences but were reluctant to speak publicly, they said.

………

Back at Langley Air Force Base, Virginia Air National Guard leaders were also taking action. Even before the “60 Minutes” segment aired in May 2012, the squadron’s leadership began a series of punitive measures against Wilson.

In April 2012, they stopped his planned promotion to major, and they threatened to take away his wings, jeopardizing his military career.

They also forced him out of his full-time desk job with the Air Force’s Air Combat Command at Langley.

During that time, Wilson alerted the Department of Defense’s office of inspector general, which is investigating. He and his lawyers say the Virginia Air National Guard’s actions are reprisal for speaking out.

This is a direct outcome of the up or out system that our uniformed military used.

By making a single disagreement or conflict with a superior officer a career ender, they have created a risk and conflict averse culture where careerism trumps doing the right thing.

Economics Says that You Should Throw Money at the Problem

It appears that the shale/fracking boom had created a wee labor shortage:

How high is demand for welders to work in the shale boom on the U.S. Gulf Coast?

So high that “you can take every citizen in the region of Lake Charles between the ages of 5 and 85 and teach them all how to weld and you’re not going to have enough welders,” said Peter Huntsman, chief executive officer of chemical maker Huntsman Corp.

So high that San Jacinto College in Pasadena, Texas, offers a four-hour welding class in the middle of the night.

So high that local employers say they’re worried there won’t be adequate supply of workers of all kinds. Just for construction, Gulf Coast oil, gas and chemical companies will have to find 36,000 new qualified workers by 2016, according to Industrial Info Resources Inc. in Sugar Land, Texas. Regional estimates call for even more new hires once those projects are built.

The processing and refining industries need so many workers to build new facilities in Texas and Louisiana because of the unprecedented rise over the last three years in U.S. oil and gas production, much of it due to shale. Labor shortages, causing delays in construction, threaten to slow the boom and push back the date when the country can meet its own energy needs, estimated by BP Plc to be in 2035.

So, in the next two years, you need 36,000 welders.

It’s pretty simple if you want to frack your world:

  • Pay to train your welders.
  • Pay your welders more.
  • Treat your employees better than the other guy.

This sh%$ ain’t rocket science.

The problem is that the “processing and refining industries” want workers who are well trained on someone else’s dollar that are cheap, and readily disposable.

What they want fails economics 101.

Why We Have a College Funding Crisis

The University of Maine is suffering the budgetary equivalent of the death of a thousand cuts, and they gave their vice chancellor for administration and finance a $40,000.00 raise:

While confronting a $36 million budget shortfall, the University of Maine System gave its top financial administrator a $40,000 raise between last fall and this spring, according to reports of employee salaries that the system publishes twice a year.

The salary for Rebecca Wyke, UMS vice chancellor for administration and finance, was listed at $205,000 annually as of April 8, 2014. That’s up from $165,000 listed in the report published Nov. 5, 2013.

“Is it a lot of money? Yes,” said University of Maine System Chancellor James Page, when asked Tuesday about the raise amid widespread budget cutting efforts at the seven UMS campuses and system office. “And we’re looking at reducing our financial management structure on an ongoing basis. But you do need to have the right people in place to get the job done.”

Page said Wyke was a finalist for a position at a higher education institution out of state that would have paid her more. He brought the question of her raise to the board of trustees in January, and they ratified the decision in an executive session. There was no mention of the raise in the open session.

“We determined that her leaving at this time would have significant adverse impact on the projects that we now have underway,” he said.

Wyke declined to be interviewed for this story.

The median salary of a vice chancellor at universities that award doctorate degrees in the United States is $326,863, according to the College and University Professional Association for Human Resources. The median salary for a vice chancellor at any institution, including those that only have two-year programs, is $186,750.

………

The raise comes at a financially stressful time for the system. In November, Wyke told the board of trustees that the universities would need to cut $36 million, or about 6.6 percent of the system’s budget, in order to pass a balanced budget in fiscal year 2015.

Page told the state Legislature in March that up to 165 full-time jobs would have to be cut as a result of the budget shortfall.

The bureaucratic overhead at higher education has exploded over the past 50 years, and the upcoming crisis in student loans continues barreling down on us.

There is a genuine problem with looting in education, and it is at the administrative level where the problem exists, and not at the instructor level.

There are way too many people who have little interest in education beyond finding a way to loot education for their own personal benefit.  (I’m talking to you, Michelle “Sell the Public Schools to Wall Street” Rhee)

So Not Surprised

Getting away from the mindless contrarianism* that Nate Silver’s rebooted Fivethirtyeight dot com seems to specialize in, Ben Casselman actually does some meaningful statistics, and discovers that the end of extended unemployment benefits has not led to more people finding jobs:

The cutoff of federal unemployment benefits doesn’t seem to be helping the long-term unemployed get back to work.

More than a million Americans saw their unemployment benefits expire at the start of the year, after Congress failed to renew the Emergency Unemployment Compensation program. The program, which Congress created in 2008, had provided federally funded payments to unemployed workers when their state-funded benefits ran out, usually after 26 weeks.
The Senate recently voted to restore the benefits, but the House shows little sign of following suit.

Some economists had argued that the program was doing more harm than good by discouraging recipients from looking for work or taking jobs. They said that because the job market was improving, the time had come to cut off benefits. That would prod the unemployed to get back to work, perhaps leading them to accept offers that seem less than ideal.
So far, however, the evidence doesn’t seem to support that theory. Rather than finding jobs, the long-term unemployed continue to be out of luck.

We now have three months’ worth of job market data since the benefits program expired. The chart below shows job-finding rates for the long-term and short-term unemployed. Notice three things: First, the short-term unemployed have a much better chance of finding a job than the long-term unemployed and always have. Second, the short-term unemployed are seeing a steady improvement in their prospects, but the long-term jobless are not. And third, there’s been no major shift since the benefits program expired at the end of last year. (The chart shows the data as a 12-month rolling average, which could obscure a sudden shift. The un-smoothed data, however, doesn’t show a jump either.)

What a surprise.

The right wing economists, and those who listen to them, people who have been wrong about everything since at least 1929 are wrong again.

* AKA Michael Kinsley disease.

Meh

Once again, we have a jobs report that is only a bit better than treading water:

Employers are hiring at a more aggressive pace again after a winter cold snap, but the pace of job gains is only slowly making up for years of lost ground in the labor market.

Nearly five years after the end of the Great Recession, the total number of private sector jobs is finally back to where it was as the downturn began in early 2008, the Labor Department reported on Friday.

But that level is still far below what is needed to fully accommodate the millions of people who have joined the work force since then, or relieve the backlog of jobless workers anytime soon.

Still, the addition of 192,000 jobs last month, all from private employers, represented an uptick from the anemic rate of job creation recorded at the turn of the year. That encouraged optimists, who foresee a slight strengthening as the wintry weather in many parts of the country in late 2013 and early 2014 yields to a more inviting spring.

In addition, while the unemployment rate remained flat at 6.7 percent in March, an increase in the number of Americans looking for work also offered up some modest hope that better times could lie ahead in 2014. So too did an upward revision in the number of jobs that government statisticians estimate were added in January and February.

At the current rate, we will have a pre-Great Recession workforce participation rate sometime in the 2nd half of this century.