Business
Balance Your People and Profits: Cal Bill Pushes Amazon, Walmart, and Other Big E-Retailers
Gonzales said she authored AB 701 to help decrease worker injury, encourage more transparency, and end the use of production quotas at corporations and government agencies, which critics say contribute to low job satisfaction and harmful working conditions.
Last week, warehouse workers, labor leaders, elected officials, and community groups came together on the steps of the California state Capitol. Their goal was to generate public support for California’s pro-worker “Warehouse Workers Protection Act,” – also called Assembly Bill (AB) 701– and to encourage the state Senate to pass it.
“Working in warehouses for corporations like Amazon has quickly become one of the most dangerous jobs in the private sector,” Assemblywoman Lorena Gonzalez (D-San Diego) asserted, placing giant e-retailers square in the scope of her target.
In the United States, e-commerce is skyrocketing, growing from a $441.51 billion industry in 2017 into a market valued at $759.47 billion in 2020. Amazon.com has the largest market share (about 40%) among leading e-retailers, followed by Walmart (about 7%) and eBay (about 4%).
Gonzales said she authored AB 701 to help decrease worker injury, encourage more transparency, and end the use of production quotas at corporations and government agencies, which critics say contribute to low job satisfaction and harmful working conditions.
“Workers are risking their bodies to guarantee same-day delivery and being pushed to the point that many can’t even break long enough to use the bathroom. There is no excuse for a company to prioritize customers’ convenience and their own profits over the safety of their workers,” said Gonzales.
In March 2020, Irene Tung and Deborah Berkowitz released a National Employment Law Project (NELP) report titled “Amazon’s Disposable Workers: High Injury and Turnover Rates at Fulfillment Centers in California.”
According to the study, “Workers who can’t keep up extreme productivity goals are fired or encouraged to quit.”
“Amazon workers around the country have reported being subject to unsustainably fast productivity requirements resulting in injury and exhaustion. Workers describe pushing their bodies to the brink to avoid automatic termination for missing quotas,” the NELP report stated. “Data from the company’s own records have confirmed their accounts showing that Amazon warehouses have stunningly high injury rates.”
Assemblymember Ash Kalra (D-San Jose), chairperson of Assembly Labor Committee; state Senator Dave Cortese (D-San Jose), chair of Senate Labor Committee; state Senator Maria Elena Durazo (D-Los Angeles); and chair of the Assembly Public Safety Committee Reggie Jones-Sawyer (D-Los Angeles) all attended the rally.
Jones-Sawyer said his 19-year-old son worked at Amazon this past summer before heading off to college in Colorado. He got sick and had to take time off work. When he returned to work, after three weeks he was fired.
“Unfortunately, he saw all the bad things about working in a factory,” Jones-Sawyer said.
Jones-Sawyer said he attended the rally for his son.
“So that’s why I am here, not only for my son but all the other sons who don’t have fathers who could speak up for them,” he said. When it comes back to the Assembly for concurrence, I will stand up, speak up and vote for it again.
The language in AB 701 directs the California Division of Occupational Safety and Health (Cal/OSHA) to establish new standards by Jan. 1, 2023, that are “designed to minimize the risk of injuries and disorders among warehouse employees who are subject to production quotas.
The California Chamber of Commerce (CalChamber) labeled AB 701 “job killer legislation” in April and criticized it as one of “23 legislative bills that would place California employers and the state’s economy in harm’s way” should it become law.
“(AB 701) threatens warehouse employers with duplicative costly litigation by creating a new, independent private right of action, and a representative action under the Private Attorneys General Act (PAGA), for failing to comply with vague standards,” CalChamber said in a statement. The organization is the largest business advocate in California.
In California, Amazon warehouses are in counties whose populations are “overwhelmingly people of color,” according to the NELP study. Combined, nearly 75% of warehouse workers are minorities. Of that number about 55% are Latinos and about 9% are Black.
If passed by the Senate and signed by Gov. Gavin Newsom, AB 701 would require employers to inform employees about quotas that corporations and organizations set to measure their performance.
The legislation requires employers to quantify work employees are expected to do. They must explain specific tasks and how meeting those goals may affect their job standing.
“AB 701 also directs the Division of Occupational Safety and Health (Cal/OSHA) to establish new standards by Jan. 1, 2023, that are “designed to minimize the risk of injuries and disorders among warehouse employees who are subject to production quotas.”
The bill also prohibits an employer from taking disciplinary action (including firing) against employees for failure to meet quotas that have not been disclosed to them. In addition, the legislation prohibits quotas that do not allow a worker to comply with meal or rest periods or occupational health and safety laws.
Business
Banning Menthol Cigarettes: California-Based Advocacy Group Joins Suit Against Federal Govt.
A California based non-governmental organization, The African American Tobacco Control Leadership Council (AATCLC), has joined two other public health advocacy groups in a second lawsuit against the U.S. Food and Drug Administration (FDA) for the agency’s inaction on issuing a final rule banning menthol cigarettes.
By Edward Henderson, California Black Media
A California based non-governmental organization, The African American Tobacco Control Leadership Council (AATCLC), has joined two other public health advocacy groups in a second lawsuit against the U.S. Food and Drug Administration (FDA) for the agency’s inaction on issuing a final rule banning menthol cigarettes.
The suit, filed by Christopher Leung of Leung Law, PLLC on behalf of the AATCLC, Action on Smoking and Health (ASH) and the National Medical Association (NMA) comes more than seven months after the FDA’s established date for finalizing a new rule against menthol cigarettes.
“We are a group of Californians, although we have expanded now. We were formed in 2008 to inform and direct the activities of commercial tobacco control and prevention as they affect African Americans and African immigrants in this country,” said Carol McGruder, co-chair of the AATCLC.
McGruder was speaking during a press briefing April 2 organized to announce the lawsuit. with representatives from the ASH, NMA and other organizations.
“Menthol cigarettes have had a devastating and disproportionate impact on the health of Black Americans,” said Yolanda Lawson, President of the NMA. “Smoking related diseases are the number one cause of death in the Black community.”
The lawsuit also follows the FDA’s 15-year delay in creating national policy that would ban cigarettes made with compound menthol, a minty substance that cigarette makers infuse into their tobacco products, making them more addictive and harmful.
Despite significant reductions in overall smoking rates in the US, smoking among poor, less educated and marginalized groups remains high. Every year, 45,000 Black Americans prematurely die from tobacco-caused diseases. An estimated 85% of them smoked menthol cigarettes.
“This disproportionate use of menthol cigarettes among Black Americans is not a coincidence,” Dr. Yerger continued. “I was one of the first tobacco documents researchers out of UCSF who exposed the tobacco industry’s systematic, predatory marketing schemes to dump highly concentrated menthol cigarette marketing into urban inner-city areas.”
In 2011, the FDA’s own scientific advisory committee concluded that the “Removal of menthol cigarettes from the marketplace would benefit public health in the United States.”
If the sale of menthol-flavored cigarettes is indeed banned, the FDA projects a 15.1% drop in smoking within 40 years, which would help save between 324,000 to 654,000 lives.
As a result of the Plaintiffs’ first lawsuit, the FDA made the landmark determination to add menthol to the list of banned characterizing flavors in cigarettes.
On the contrary, tobacco-aligned groups in the past have argued that banning menthol cigarettes would be impact federal and state budgets with the loss of nearly $6.6 billion in cigarette sales taxes. Menthol cigarettes account for over one-third of the U.S. cigarette market.
Other arguments from tobacco-backed groups include unintended consequences of a ban such as increased policing in Black and Brown communities due to contraband cigarettes. However, health advocates have dismissed this claim stating the ban would apply to companies that make or sell menthol cigarettes, not individual smokers.
By law, the United States has two months to respond to the lawsuit. The feds can respond to it or file a motion to dismiss.
If the suit is successful, the FDA would have 90 days to make a final ruling.
Business
Cal. Supreme Court Could Strip Gov and Legislature of Power to Raise Taxes
On May 8, the California Supreme Court heard oral arguments on the Taxpayer Protection and Government Accountability Act, a measure that has already been approved for the November ballot. It calls for restricting the state Legislature and Governor’s ability to increase taxes without statewide voter approval. California business owners back the measure while Labor unions have rallied in opposition to it.
By California Black Media
On May 8, the California Supreme Court heard oral arguments on the Taxpayer Protection and Government Accountability Act, a measure that has already been approved for the November ballot. It calls for restricting the state Legislature and Governor’s ability to increase taxes without statewide voter approval.
California business owners back the measure while Labor unions have rallied in opposition to it.
Gov. Gavin Newsom and legislative Democrats have petitioned the Supreme Court to remove the proposal from the ballot since the California Constitution requires a constitutional convention to ratify the ballot with a two-thirds majority vote in the legislature.
Democrats and labor unions stated that the ballot measure could limit state and local funding thus crippling the state’s ability to produce new sources of revenue. A reduction in revenue may result in government programs and initiatives being underfunded,” they say.
Legislative Democrats also argued that the measure’s economic impact will make it harder to resolve the state’s budget deficit.
Business owners and company leaders advocating for the ballot measure stated that the tax initiative can help form new checks and balances on taxation and attract companies to invest in California creating more jobs.
President of the California Business Roundtable Rob Lapsley, a supporter of the tax initiative, said that people are fed up with the state’s high taxes.
“This gives the people of California the right to vote on future taxes, and voters are going to support it if it’s on the ballot,” Lapsley said.
Opposers of the tax initiative, mainly labor unions and state workers such as teachers, police officers, and firefighters, have aligned with Legislative Democrats to reject the tax law.
Executive director of Service Employees International Union California Tia Orr said the tax law was created to benefit wealthy corporations and deceive the average taxpayer.
“I want to make it clear that the ‘Taxpayer Deception Act’ let’s wealthy corporations, who can afford expensive campaigns, to block taxes on their industries while regular Californians, regular people, shoulder more of the cost of critical services,” Orr said.
The California Supreme Court is expected to make a ruling on the future of the initiative by June 27 this year.
Antonio Ray Harvey
Cal African American Chamber of Commerce Holds Annual Gwen Moore Legislative Reception
The California African American Chamber of Commerce partnered with the California African American Action Fund to host its annual “Honorable Gwen Moore California Legislative Reception.” The event took place on May 7 at the Sutter Club in downtown Sacramento. Distinguished guests included business leaders, state officials, and both former and current lawmakers. Notably, members of the California Legislative Black Caucus (CLBC), attended the event.
By Antonio Ray Harvey, California Black Media
The California African American Chamber of Commerce partnered with the California African American Action Fund to host its annual “Honorable Gwen Moore California Legislative Reception.” The event took place on May 7 at the Sutter Club in downtown Sacramento.
Distinguished guests included business leaders, state officials, and both former and current lawmakers. Notably, members of the California Legislative Black Caucus (CLBC), attended the event. Former Assembly Speaker and San Francisco Mayor Willie Brown, 90, was the keynote speaker. Former state Sen. Roderick Wright and CAACC Executive Director Timothy Alan Simon served as emcees.
“The California African American Chamber of Commerce and the California African American Action Fund represent the African American economy of the fourth largest economy of the world,” Simon said during the introduction of the event. “Therefore, tonight let’s have some fun. We are going to learn how to acquire more power, more financial funding, and more access. We’re opening up those doors to you.”
During the reception, an award ceremony honored individuals for their achievements, innovative ideas, leadership, business acumen, and political contributions.
The CAACC Media and Communications Award was presented to Civil Rights Activist Danny Bakewell Jr., President of the Bakewell Company and Executive Editor of the Los Angeles Sentinel.
The Gwen Moore Legislative Impact Award was presented to Assemblymember Lori Wilson (D-Suisun City), Chair of the CLBC. The Legislator of the Year honor went to Assemblymember Corey Jackson (D-Moreno Valley).
“This is an absolute honor. Especially, with my knowledge and familiarity with Assemblymember Moore’s work,” Wilson said. “It’s just a reminder, honor, and privilege of this space I get to be in. This award holds profound significance for me and those who dedicated their lives to advancing equity, justice, and opportunities for all.”
Cathy Adams, President and CEO of Oakland African American Chamber of Commerce was presented with the Aubry Stone Outstanding Business Award. The Trailblazer Award was presented to the late Linda Crayton, former San Francisco City Commissioner.
Crayton served on the Airport Commission for the City and County of San Francisco from 1996 to 2020.
“She clearly served for almost 25 years, and she was totally sensitive to the need and careful implementation within the framework of all the rules that had been established,” Brown said of Crayton. She was a difference for many.”
Other leaders honored were John Reynolds, California Public Utilities Commission (recipient of the Distinguished Service Award); Hon. Heather Hutt, Councilmember for the City of Los Angeles, representing Council District 10, (Distinguished Service in the African American Community Award); and Thurman White, Senior Advisor ESO Ventures (Distinguished Recognition Award).
Rounding out the special guests and awardees list were Sen. Steven Bradford (D-Inglewood), CLBC Vice Chair, Dennis Thurston, Supplier Diversity Program Manager for Southern California Edison; Angela Gibson-Shaw, President of Greater Los Angeles African American Chamber of Commerce; and Tommy Ross, Pinnacle Strategic Group.
Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) also attended the two-hour event.
“That’s the nature of how we need to work in the world of politics and, how we need to exercise authority and privilege.”
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