Tuesday, June 30, 2015

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Union Fires Walmart Campaigners As Focus Shifts To Media

After firing two top organizers of the Our Walmart campaign, the United Food and Commercial Workers union will focus on media tactics in an “aggressive new strategy.”

Mel Evans / Associated Press

Our Walmart, the union-funded effort to improve working conditions at the world's largest private employer, will be taking a new approach to campaigning after its union backer cut funding and laid off its two most senior organizers.

The four-year old campaign made plenty of headlines as it organized protests at Walmart stores and corporate offices, including actions targeting Black Friday, the busiest day of the retail year. Its members celebrated a small victory in April when the company said it would raise its minimum wage to $10 an hour by next February.

But its main financial backer, the United Food and Commercial Workers union, has decided to change course. Just weeks before the Walmart shareholders meeting in May, it fired two top leaders of Our Walmart, Dan Schlademan and Andrea Dehlendorf, according to multiple sources outside the union. The two, who did not respond to requests for comment, had been instrumental in leading marches, Black Friday actions, and sit-ins at Walmart stores.

In April, the Washington Post reported the union had cut funding for Our Walmart and its sister campaign, Making Change at Walmart, by more than 50%.

The union appears to be shifting its focus to media campaigning, rather than organizing actions on the ground. In May it hired Jessica Levin, formerly of progressive media watchdog Media Matters for America, to run communications for the union and coordinate a new media effort for the Our Walmart campaign. Media Matters rose to prominence as a digitally savvy operator among progressive activist organisations, criticizing "conservative misinformation" in the media.

With Levin on board, the Our Walmart campaign will take a more media-focused approach, advertising on TV, online, and in print.

"With Walmart recently making major communications and management changes, our campaign needed to move in a more aggressive direction," said Our Walmart in a statement via the UFCW. "This next phase, which includes a very aggressive strategy like these ads, is just the beginning."

The first full-page print ad released by the UFCW in this new period of campaigning is set to be published this week in USA Today. "1,117,514 years since humans evolved to walk the earth on two legs," it reads. "The same number of years it would take for the average Walmart employee to earn what the Waltons made last year."

Notably, the phrase "Our Walmart" does not appear anywhere on the ad, although it does include a UFCW logo. A person familiar with the campaign said this was done to ensure there would be "no confusion as to where the message was coming from."

Via UFCW

Our Walmart said the changes will not water down its commitment to on-ground organizing. "Working with employees on the ground to bring attention to working conditions at Walmart will always be a part of this campaign," it said. "The workers are the most important voice in the conversation about the responsibility Walmart has to improve the lives of employees and their families."

The shift in focus comes after the Our Walmart campaign appears to have gained a significant level of awareness within the company. "Walmart's listening," said Tiffany Beroid, an active Our Walmart member and former Walmart worker who attended the recent protest at the company's annual shareholder meeting.

They're listening so closely, she said, that Rob Walton, son of founder Sam Walton and company chairperson since 1992, did an Our Walmart chant from the stage of the shareholders' meeting.

"He said, 'Whose Walmart?' and we shouted back, 'OUR Walmart,'" said Beroid. "That's always been our chant. They have their own chant within the company. He was acknowledging our presence."

A Walmart spokesperson did not reply to a request for comment.

Our Walmart has been one of the more visible players in the "alt-labor" movement, where non-traditional organizing campaigns attempt to mobilize workers in industries where the union movement has been long in exile. The UFCW's changing approach to the campaign is being closely watched by others in the labor movement.

"What we understand is that UFCW has expanded their fight to include all retail workers," said Mary Kay Henry, head of the Service Employees International Union, which backs the Fight For 15 movement to raise fast wood wages.

When asked if the SEIU would consider assisting Our Walmart financially, Henry said the union would offer support in other ways. "We want to help by sharing our digital communications work, help with our members who have gotten to do training with their co-workers. We've been sharing educational materials," she said. "We want to help in whatever way we can to bring union and non-union workers into this fight."


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In-Flight Wi-Fi Will Soon Get Much Faster, Gogo Tells Wall Street

In a presentation to investors, the company said onboard Wi-Fi will hit broadband speeds within five years, and be available on many more flights.

Peter Bartsch / Via Flickr: peterbartsch

The Gogo in-flight Wi-Fi service offered on the majority of U.S. domestic flights will soon get dramatically faster, the company has told investors, with speeds ten times faster than today expected to arrive in the coming five years.

The company's current service isn't fast enough to handle things like streaming video, and can only work over land, not water — and even when it's working, it can slow to a crawl if too many users sign in. But that, the company says, will change as it transitions to satellite antennas and ditches its old air-to-ground technology. That transition, and other lofty goals Gogo has for its service, are planned to be completed in next five to 10 years, according to the presentation, which was filed to the SEC on Monday.

Gogo

On its mission to conquer what it calls the "last frontier of internet connectivity", Gogo has had its fair share of challenges.

There were accusations that the provider—the largest by far in the U.S. aviation market—held an illegal monopoly due to lengthy contracts with the country's largest airlines. Not to mention a barrage of customer complaints over the years that Gogo was too expensive, too slow, and too spotty.

Gogo costs around $16 per day or $59.95 per month, and is available on most of the 80% of domestic flights that have Wi-Fi capability. The company said the satellite system will be much cheaper to operate than current services, but did not specify whether those cost savings will ultimately be passed along to air travelers in the form of cheaper inflight Wi-Fi service.

Among the promises Gogo's CEO Michael Small and CFO Norman Smagley made in their presentation, prepared for their address at the NASDAQ Investor Program, is Wi-Fi speeds of 100Mbps (up from today's peak of 10Mbps) rolled out within five years. Gogo expects those higher speeds, and the higher demand that will come with them, to be the platform for huge growth: it expects the number of planes using its service will rise by 150% by 2033.


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Monday, June 29, 2015

2015 California State & Federal Labor Law Poster, Laminated. Attorney Marc Grimaldi Approved

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Puerto Rico Governor Calls For "Shared Sacrifices" To Deal With Debt Crisis

The island is in deep economic trouble, and its leader has said it is unable to pay back its $72 billion in debt.

Alvin Baez / Reuters

That means it has no provision for declaring bankruptcy, and it funds its government by issuing bonds in U.S. dollars. Its debt has long been gobbled up by individual and institutional investors in the U.S. because income earned from the bonds is tax free, much like the bonds issued by U.S. municipalities.

But while municipal bonds are only exempted from state and local taxes in the state where the bond is issued, all American investors get state & local exemptions for Puerto Rican bonds.

People ride atop a vehicle waving a Puerto Rican flag during elections in 2012.

Ricardo Arduengo / AP


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The University Of Phoenix Wants Its Reputation Back

Charlie Riedel / AP

Apollo Education, the owner of the University of Phoenix, told wary investors Monday that it would try, once again, to "transform" the country's largest for-profit college chain. The announcement came after the company reported another dismal financial quarter, and two days before the Obama administration's potentially damaging industry regulations are set to go into effect.

The goal, Apollo CEO Greg Cappelli said in an earnings call, is to "repair the reputation of the University of Phoenix," scaling it back in size and cutting some of its worst-performing programs. Enrollments at the university fell by 14% in its most recent quarter.

The transformation plan is one of several the university has rolled out over the years in an an attempt to curb declining enrollments. So far, few have been successful.

"We've tried a lot of things to turn things around, and it hasn't gone to the level we thought it would," Capelli said on the call. "So we're taking next steps."

Apollo stock slid 5% in anticipation of the company's earnings. It was down another 5% in after-hours trading Monday.

The company said it would embark on a "period of transformation" that, in the short term, is likely to further drive down revenue and enrollments. But the plan, the it said, will increase graduation rates and drive down the high loan default levels that have long plagued the for-profit college industry.

At its peak five years ago, Phoenix had some 460,000 students and a soaring stock price. The company is also facing an unprecedented regulatory environment, with a "gainful employment" regulation set to go into effect Wednesday that the company said in its earnings report is likely to affect some of its programs.

Apollo plans to introduce admissions criteria and diagnostic tests, no longer enrolling every student that comes to the school's doors. It will stop letting students start every week, close some campuses, and to cut back on associate's degree programs. Such programs are among its worst-performing, and the most likely to be hit by gainful employment regulations, which will cut federal financial aid for programs that graduate students with high debt loads and low earnings.

On the earnings call, analysts seemed wary of the parts of Apollo's plan that are likely to involve reduce enrollment, eventually leaving the university with around 150,000 students. Every student the school chooses not to enroll is revenue, primarily via federal loans, left on the table

"We know there's short-term consequences to doing this," Capelli said. "We want our reputation back, like we used to have, as a university that has high outcomes."


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How McDonald's Is Changing Its Food: One Small Tweak At A Time

The burger chain is making minor but necessary updates to its food to make its menu more appealing. But few think it will be enough to reverse sliding sales.

instagram.com

Shortly after becoming CEO at McDonald's, Steve Easterbrook told investors, "We intend to make meaningful impact with customers and how they perceive our brand and our food." Yet little was said about what, exactly, Easterbrook had in mind beyond the broadly described goal of being a "modern, progressive burger company."

In the months since, clues about what McDonald's executives are planning have slowly surfaced. So far, the strategy taking shape seems to involve making minor adjustments to the existing menu—focusing on aspects of food quality and preparation, as well as price—rather than undertaking a major overhaul.

The changes reflect Easterbrook's intentions to be more nimble with changes, and "move fast with what works and even faster from what doesn't."

Some onlookers see the approach as the right one for the burger giant. "Small menu tweaks and promotions are indicative of the kind of turnaround plan they need," said restaurant consultant Aaron Allen.

First, as BuzzFeed News reported in May, the chain has announced plans to toast its buns five seconds longer to make its sandwiches hotter.

Last week, an internal document revealed it would beef up its quarter pounder to weigh a quarter pound (4 ounces) after cooking, a significant bump up from the current 2.8-ounce cooked patty, according to CNBC. The changes seem to an effort to compete with other "better-burger" chains like Shake Shack and Five Guys that have been stealing customers.

And in terms of value, McDonald's is testing "Mini Meals," which offer lower-cost, sized-down combos with a small drink and fries that cost from $2.99 to $3.99, depending on which burger you choose. These combos offer higher margins, according to Burgerbusiness.com, and for consumers, aside from being cheaper the sized-down meals contain fewer calories — from 520 to 820.

The chain is also offering a double cheeseburger and small fries for $2.50.

The company announced this month that kids-meal orders shifted from sodas to juice and milk over the last year, following the chain's removal of soft drinks from Happy Meal menu boards. While 56% of customers ordered a soda with their Happy Meal prior to the changes, 48% do today.

"We're always innovating around McDonald's food, drinks, and restaurant experience based on customers' preferences, and that includes hotter food and reviewing cooking procedures," spokesperson Lisa McComb said in an email.

It seems unlikely that such changes alone will turn around the company's sliding sales in the short term — and such numbers will become less visible when the company goes through with its plan to stop reporting monthly results after July. Allen said based on what he's seen, "McDonald's isn't doing nearly enough to reverse deep problems with their public perception."

"No one will complain about getting a juicer burger, or a better bun. The question is though, will it be enough to win back customers lost to other better-burger companies," said Allen, who believes there needs to be a greater focus instead on improving McDonald's speed of service, which may be hampered by all these small changes.

"Sure, the quality and nutrition needs to go way up — along with a hundred other things," he said. But, more importantly, "you can never make it too fast or too convenient for consumers."


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Rand Paul Threw A Libertarian Hackathon On Pride Weekend

For liberty, for privacy, and for Rand Paul for President.

William Alden / Via BuzzFeed News

If they ventured outside on Saturday, maybe even took a walk to Dolores Park, the programmers would have been bathed in glorious sunshine and surrounded by rainbow-clad revelers.

Instead, for 24 hours starting that afternoon, smack in the middle of San Francisco's Pride weekend festivities, they sequestered themselves in a harshly lit co-working space in the city's SoMa neighborhood, coding for liberty, for privacy, and for Senator Rand Paul.

His presidential campaign had organized what is known in tech circles as a hackathon — basically, an all-night software-writing orgy — with a political twist. The campaign had challenged the programmers, grouped in competing teams, to make software applications for "protecting liberty and privacy." The winning team would get to meet Paul. The top two would get copies of the Constitution, signed by the libertarian-leaning senator.

The Rand Paul for President campaign cared a lot about this hackathon. Ron Schnell, the campaign's recently hired chief technology officer, told BuzzFeed News it was "a good starting point to ramp up to the most tech-savvy campaign in history," and that it was "pretty much the first thing I started working on" after joining the campaign in May.

Schnell pointed out the event had its own hashtag, #HackForRand. The senator wasn't actually there, but a close-to-life-size foam board cutout was. The image of Paul stared serenely at the programmers with a Mona Lisa smile. Beside it hung two campaign signs: "DEFEAT THE WASHINGTON MACHINE." "UNLEASH THE AMERICAN DREAM."

Ron Schnell, the campaign's chief technology officer.

Brendan Klinkenberg / Via BuzzFeed News

William Alden / Via BuzzFeed News


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Victoria's Secret Is Getting Rid Of On-Call Scheduling In Stores

The chain was at the center of a BuzzFeed News story earlier this month looking at scheduling practices in the retail industry.

Leon Neal / Getty Images

Victoria's Secret is ending the use of on-call scheduling in its stores, employes were told yesterday — a major reversal of a policy that wreaked havoc on the lives of tens of thousands of retail workers across the country.

The chain told employees it would no longer use the controversial scheduling practice, which requires staff to be available for shifts that can be cancelled at the last minute with no compensation, three current and former staff told BuzzFeed News on the condition of anonymity.

It also told staff that they will be notified in advance if upcoming shifts may involve "extensions" that require them to work past their scheduled end time. Workers will also be able to sign up for extra hours if they want them, the ex-employees told BuzzFeed News. Store managers were briefed on the new policies last week.

A source familiar with the company confirmed the changes to scheduling policy. L Brands, Victoria's Secret's parent company, declined to comment.

Victoria's Secret was at the center of a BuzzFeed News story earlier this month for its widespread use of "call-in" shifts — days that an employee needs be available, often until hours before start time, with no guarantee of getting any work or pay.

Victoria's Secret, which is owned by L Brands, was sued for the practice in California last year, in a case that largely centered around whether "reporting for work" includes being available for call-in shifts (and therefore compensation if the shift is canceled).

The judge in that case dismissed the call-in reporting time claim but gave lawyers permission to appeal the decision to a higher court for an authoritative interpretation of what it means to "report for work" under the state's labor laws. At the time, Victoria's Secret declined to comment to BuzzFeed News on its scheduling practices, citing the pending litigation, which is still under way.


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Our Robot Overlords Aren't Quite Ready For Us — Yet

In the booming field of industrial robotics, the race is on to create a machine that can actually replace human workers. But even with the brightest minds in automation on the project, human-less labor is more science fiction than near future.

On a sweltering afternoon in San Jose, California, in the cafeteria of a brand-new building called the Blue Sky Innovation Center, a robot is making a salad. Specifically, it's making a kale salad with goat cheese, blueberries, and sunflower seeds, partially heating the mixture to lightly melt the cheese.

Brendan Klinkenberg and Caroline O'Donovan / BuzzFeed

Brendan Klinkenberg and Caroline O'Donovan / BuzzFeed


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Sunday, June 28, 2015

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Saturday, June 27, 2015

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