Business

Blacks ‘Segregated’ in Low-Paying Retail Jobs

Published

9 years ago

June 9, 2015

Oakland Post

Blacks paid less in retail (Photo credit: Tomwsulcer/CC0 public domain)

By Jazelle Hunt
Washington Correspondent

WASHINGTON (NNPA) – More than 1.9 million Black Americans work in retail, accounting for 11 percent of the industry’s total workforce. Despite being the second-largest source of employment for Black workers, new data from the NAACP and equality advocacy organization, Demos, finds that the industry is rife with racial inequality and poor earning potential.

According to the report, titled “The Retail Race Divide,” full-time Black and Latino salespersons earn 75 percent of the wages of their White counterparts. For Black and Latino cashiers, the figure is 90 percent. Further, Black and Latino workers are sometimes stuck in “occupational segregation;” not only are they overrepresented in low-wage industries such as retail, but they’re also overrepresented in the lowest paying positions within these industries. Consider: Black people make up 11 percent of the retail force, but 6 percent of those in managerial or leadership roles.

“They are, in effect, segregated by color and income. Now, not segregated as a matter of law, as was the case many years ago…but certainly by circumstance, by industry practice. Even where we don’t have overt discrimination that violates Title VII [of the Civil Rights Act], there are subtle forms of discrimination that may also violate Title VII, but are less obvious,” says Cornell William Brooks, president and CEO of the NAACP.

“It’s not necessarily that a company has a policy that says African Americans and Latinos should be overrepresented at the cash register and in lower paid positions. But rather, if they do not have policies to ensure that African Americans and Latinos have access to and are encouraged to apply for better paying positions as managers, there’s something profoundly wrong.”

Brittany O’Neal has worked in retail for three years, most currently in the Fashion Centre at Pentagon City in Arlington, Virginia. The 25-year-old full-time student is a few credits shy of earning a criminal justice degree, but also works full-time hours as a salesperson to support her 3-year-old son.

“The store I work at…comes with a lot of customer service. Sometimes you work really hard and [customers] end up just returning everything,” she says. “[Our pay] is all commission, unless you don’t make enough. Then you get your hourly wage.”

O’Neal says support from her family and managers in accommodating her schedule make it easier to earn enough money and still finish school. Not everyone is so fortunate; according to the report, retail wage disparities also happen through inadequate and unreliable scheduling practices. While Black, White, Latino, and Asian people work part-time at even rates, nearly half of all Black and Latino retail workers would prefer full-time hours (compared to 29 percent of Whites and Latinos). The report’s measure doesn’t include workers who want more hours while remaining part-time, which would likely play out along racial lines as well.

There’s also the difficulty in being “on-call,” a common practice among retail managers.

“Although just-in-time scheduling can have negative effects for any retail worker, there is reason to believe that the burden is disproportionately heavy on Black and Latino workers,” the report states, adding that this is the population most likely to juggle their educations, parenting, and additional employment while holding a retail job.

“Moreover, due to residential segregation and other socioeconomic constraints, Black workers have longer commute times than White workers, leading to greater time and money costs when their shifts are cut short.”

The disparities spell serious repercussions for Black Americans, and particularly Black families. Fully 17 percent of Black retail workers live below the poverty line, compared to 9 percent of retail workers overall. More than half of Black workers are responsible for at least half their household’s income, and they are the most likely of all retail workers to be the sole breadwinner in their households – 26 percent are, compared to 15 percent of White workers, and 18 percent of retail workers overall. Black retail workers are also significantly more likely to be raising children on these wages – 65 percent are, compared to the overall 33 percent.

And, according to recent analysis from the National Low Income Housing Coalition –an affordable housing research and advocacy organization – there’s nowhere in the country where a full-time minimum wage worker can afford a one-bedroom apartment (priced at the Department of Housing and Urban Development’s standard of Fair Market Rent), without paying more than 30 percent of their income.

“There’s this notion that people working in the retail industry are young, inexperienced, and lack dependents. But here’s the blue-collar reality: 90 percent of African American and Latino retail workers are over 20 years of age, and half of them provide at least 50 percent of the income their families need to survive,” Brooks says. “We’re not talking about adolescents at the cash register working part time or working to add a little something to their young budgets. We’re talking about people who have families to support.”

The effects of these disparities extend beyond retail workers’ households.

As the report explains, “Service industry employment became more central to the well-being of American workers, but the low wages and uncertain schedules that characterize that employment undermined household financial security and, by extension, growth and stability for the economy overall.”

In short, low household income translates to low consumerism, poor wealth generation, poor entrepreneurship, and slower growth in the overall economy.

The NAACP/Demos report suggests that the problems can be alleviated if retailers raise the wages for their least paid positions, as well as through state and federal policies. It also points out that legal battles and union actions have been useful tools in securing better outcomes for retail workers.

Brooks encourages people to challenge the status quo through interpersonal, legal, and civic avenues.

He says, “One of the best allies in the fight for a living wage is the NAACP. So I’d encourage people to join local branches of the NAACP, help us organize for living wages, and help us make it clear to the country that you should not have to work hard to be poor.”

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Oakland Post: Week of April 24 – 30, 2024

The printed Weekly Edition of the Oakland Post: Week of April 24 – 30, 2024

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6 hours ago

April 26, 2024

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State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference

California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

Published

6 days ago

April 20, 2024

Oakland Post

American Business Women’s Association Vice President Velma Landers, left, with California State Controller Malia Cohen (center), and ABWA President LaRonda Smith at the Enterprising Women Networking SF Chapter of the ABWA at the Black Wealth Brunch.

By Carla Thomas

The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.

ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.

“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.

More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.

Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.

“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.

“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.

“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.

By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”

Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”

Cohen urged audience members to pass the initiative on the November 2024 ballot.

“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”

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Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

6 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”