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Unionize Goldman Sachs

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Unionize Goldman Sachs. I do not say this to be cheeky. I do not say this ironically, nor with a winking sneer. I do not say it as a fantastical absurdity. In fact, if the employees of Goldman Sachs were as smart as they think they are, they would have unionized a long time ago.

Last week, the beleaguered first-year analysts of the fancy investment bank made news when they circulated a slide deck and survey complaining of 100-hour work weeks and inhumane working conditions that are destroying their mental and physical health. Such stories crop up regularly, and reflect the fact that even the most prestigious Wall Street banks tend to operate exactly like the most prestigious college fraternities, complete with hazing rituals and fanatic demands for loyalty in exchange for the promise of being served by future generations of slavish recruits. This sort of built-in mistreatment makes perfect capitalist sense. It selects for the people willing to endure any outrage in order to get rich, and simultaneously inculcates in them a feeling that they have ?“earned” their riches because of what they endured. The way these pathetic young Ivy League try-hards are treated is indefensible on human rights grounds, but then again, if they cared very much about human rights, they wouldn’t be working on Wall Street in the first place. 

Yes, a union could mitigate these abusive working conditions. But that is only a secondary reason for these budding masters of the universe to organize. Goldman Sachs is the pinnacle of high finance, the place with the strongest reputation for controlling every nuance of the economic world. Yet, incredibly, in the past 150 years, none of its employees have realized the basic truth that bargaining collectively with your coworkers will always get you more, in aggregate, than bargaining alone. The bankers who work for Goldman have been leaving money on the table every single year because they do not have the leverage inherent with being able to negotiate together as a single group?—?the only leverage that allows the labor force of any employer, even a Wall Street bank, to extract the maximum possible share of the proceeds of a business. You would think that they would have learned this rudimentary fact during their early days at Harvard Business School, but apparently their ignorance is the price they pay for going to a school that considers labor only a cost to be controlled, rather than an identity that encompasses almost everyone. 

I do not need a red-faced banker in a fleece vest to condescendingly explain to me why Goldman Sachs has never unionized despite the overwhelming logical case for doing so. I’m quite sure I can recite their explanations already: ?“We’re paid a lot, unions aren’t for us.” ?“There are a thousand people who would love to have my job.” ?“I can make a ton of money by rising up through the current system.” ?“I plan to run this place one day.” All that I hear in these excuses is a business that benefits greatly from the fact that it has successfully indoctrinated its employees to believe that they are not labor. Congratulations, Wall Street! Over the past century the management and shareholder classes of Wall Street banks have reaped countless billions of dollars in profit for themselves that they would have had to distribute to their employees, had those employees had the power of collective bargaining. Instead, each of those employees were convinced that they were the superstars, and would eventually win this race to the top, and that joining with their coworkers would only hold them back. Mathematics tells us that for the vast majority of employees, this belief is untrue. And yet it persists, because believing otherwise would make you a traitor to capitalism (even though it would also make your salary higher). It’s sad, really. 

Goldman Sachs, and the entire class of well-paid, competitive white collar jobs like it, represents the purest distillation of the lie that American businesses have gotten millions of workers to swallow for decades: that solidarity is the enemy of success, and the key to winning is to compete with your fellow workers, and defeat them in a cutthroat battle for advancement. Suffer through these 100-hour weeks now, and live like a Senior VP one day in the future! Corporate America has pulled off this con by waving around the particulars of a job (Good salary! Free meals! Expense account!) to argue that it is not like regular jobs, while concealing the unavoidable structural reasons why it is, indeed, subject to the same basic dynamics as other jobs, in which the workers always benefit by being able to exercise collective power. 

Many in the labor movement will say: Fuck ?‘em. Who cares if Goldman Sachs people aren’t smart enough to organize? The reason why this matters is not that these bankers will starve without a union?—?it is that part of building a truly powerful labor movement is getting everyone into that movement. In the sort of coherent, well-functioning labor movement that America desperately needs, the dues money would flow not just from workers on the bottom, but from those on the top. It can then be directed towards the area of greatest need. You get the dues money from the bankers, and use it to organize the janitors. Everyone is in it together. Let the peons of Wall Street turn their allegiance away from the owners and towards their fellow working people. That’s how a strong labor movement should work. 

Brothers and sisters of Goldman Sachs: join us! You have nothing to lose except your goofy fleece vests, execrable work hours, and lack of a union wage premium. And we’ll even let you keep the vests. Union democracy is real. 

This blog originally appeared at In These Times on March 23, 2021. Reprinted with permission.

About the Author: Hamilton Nolan is a labor reporter for In These Times. He has spent the past decade writing about labor and politics for Gawker, Splinter, The Guardian, and elsewhere.


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After Ruling That McDonald’s Can’t Pay Workers In Bank Cards, The Bank Pays Up

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AlanPyke_108x108Paying employees through prepaid debit cards that incur fees when workers try to withdraw their cash is illegal in Pennsylvania, a judge ruled Tuesday. The lawsuit targeting a McDonald’s franchisee in the eastern-central part of the state has already prompted a powerful Wall Street bank to voluntarily give money back, a lawyer for the plaintiffs told ThinkProgress on Wednesday.

The case began in 2013 after a woman named Natalie Gunshannon sued a couple who own and operate multiple McDonald’s franchises in the state. The owners, Carol and Albert Mueller, had been using payroll debit cards provided by JP Morgan Chase rather than traditional paychecks or direct deposit payroll systems. After Gunshannon filed suit, the couple began offering direct deposit and traditional checks as alternatives to the payroll cards, which had previously been workers’ only option.

Gunshannon and other workers faced a $1.50 charge every time they used an ATM to access their wages, and a $5 charge for withdrawing the money over the counter at a cash register. Where a worker who misplaced a standard paycheck would be able to get a replacement check, the JP Morgan Chase prepaid cards charged a $15 replacement fee if lost or stolen. Paying bills online with the card meant spending an additional 75 cents on bank fees, and merely checking the balance of a card triggered a $1 fee.

The Muellers’ hourly workers were charged such fees nearly 47,000 separate times from the fall of 2010 to the summer of 2014, according to an expert witness in the case. That works out to roughly 20 separate fees per person in the class over a 45-month period.

Store managers, meanwhile, were offered direct deposit forms to receive their pay without facing the card fees.

When Gunshannon’s claim gained class action status earlier this year, all 2,380 hourly workers at the Muellers’ chain were able to join the case. Each of those workers would be entitled to a $500 damages payment plus the reimbursement of all the fees they were charged by the payroll cards, should the Muellers’ appeal of Tuesday’s ruling ultimately fail. In that case, the couple would have to pay out roughly $1.2 million in damages, unless they are able to strike a settlement with the workers’ attorneys.

Because the class action decision raised the stakes so significantly, that May ruling was in some ways a bigger deal than Tuesday’s finding that the Muellers had broken the law. The class status ruling in May certainly got Chase’s attention, plaintiffs’ attorney Michael Cefalo told ThinkProgress.

“Our lawfirm became bombarded with telephone calls. All of the class members were getting a form letter from Chase saying, we have decided to refund you all of the fees you have paid Chase,” Cefalo said. “We were shocked.” The voluntary payments from Chase ranged from as little as a penny to as high as $148, the attorney said. A call to the bank’s press office about the payments was not immediately returned.

The checks do little to shield the Muellers from the potentially backbreaking damages payments mandates by Pennsylvania’s Wage Payment and Collection Law. And while the money is nice, Cefalo said, it doesn’t erase what the McDonald’s franchisees and Chase did to his clients.

“Say I come up to you and I have an armed robbery, and then I say ‘I’m sorry, here’s your money back.’ I still committed a robbery,” he said. “You still paid ‘em the wrong way.”

The Muellers’ attorneys told Law360 they intend to appeal Tuesday’s ruling. They may yet succeed in persuading a different judge that the payroll cards fit the state’s definition of legal payment. In Tuesday’s decision, Judge Thomas Burke himself acknowledged that the relevant state law was written in 1961, and the technological progress in payments technology since then may cloud the case. He also asked the state’s Department of Labor and Industry to issue a formal administrative position on whether or not payroll cards that charge user fees are equivalent to cash or checks. The agency has previously said the cards are legal payment, but only in a non-binding advisory letter, according to Law360. A call to the agency for comment was not returned.

Payroll cards such as those the Muellers used are legal in many states, despite the fees that eat into workers’ wages. A handful of state legislatures are weighing new rules to govern the use of such cards, including Pensylvania itself and Washington state. The Consumer Financial Protection Bureau is working on regulations for a wide range of different prepaid debit cards including payroll cards like those in the Mueller case. The agency has warned employers that they must make alternative forms of payment available for any worker who doesn’t want the cards, and is currently soliciting comments on a proposed federal regulation.

With millions of Americans lacking access to banking services, the cards can be an important and beneficial tool for workers so long as they come with the right safeguards, the National Consumer Law Center has argued. Close to 5 million people were paid through such cards in 2012, a number projected to double by 2017. Similar prepaid debit cards are also being used in some cases to pay public benefits such as unemployment insurance. The banks that provide the cards and charge the fees are trying to recoup some of the profit they lost when Dodd-Frank regulations curtailed their old business practices involving fees for standard debit cards.

This blog was originally posted on Think Progress on June 3, 2015. Reprinted with permission .

About the Author: The author’s name is Alan Pyke. Alan Pyke is the Deputy Economic Policy Editor for ThinkProgress.org. Before coming to ThinkProgress, he was a blogger and researcher with a focus on economic policy and political advertising at Media Matters for America, American Bridge 21st Century Foundation, and PoliticalCorrection.org. He previously worked as an organizer on various political campaigns from New Hampshire to Georgia to Missouri. His writing on music and film has appeared on TinyMixTapes, IndieWire’s Press Play, and TheGrio, among other sites.


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11 Ways Big Banks Make Life Harder for Working Families

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Kenneth QuinnellA new report from the Center for Popular Democracy examines the ways that large financial institutions are helping dismantle the middle class and making life more difficult for working families. The top 10 banks alone bring in some $100 billion in annual profits, and a significant amount of that revenue is generated from sometimes unethical and questionable tactics that working families have a hard time fighting back against.

Here are 11 ways the big banks are making life harder for working families:

1. While 27% of Americans have no or little access to financial services, the big banks are closing local branches, making the problem worse.

2. Banks are pressuring their workers to push customers to purchase services that use predatory banking practices instead of sound financial principles. Quotas drive the process rather than the needs of customers.

3. The large financial institutions are cutting wages, benefits and hours for workers, making it harder for them to serve customers and increasing work-related stress.

4. Core banking activities for the average worker, such as helping people open and manage accounts or plan for retirement or obtain a credit card, are considered low value services by the banks, and they are actively trying to avoid those services in favor of higher profit activities such as mortgages.

5. Workers who can’t fill their quotas for pushing mismatched or predatory products and services are threatened with termination or had their paychecks docked for the amount they fell short of their quotas.

6. Since 2011, 17 lawsuits have been settled by the financial services industry for alleged illegal and unethical business practices. The banks have paid out nearly $46 billion.

7. At least three banks are accused of charging people of color higher interest rates or fees than white borrowers.

8. The big five banks are accused of steering people of color into dangerous subprime mortgages.

9. Two banks have, in the past, maximized their profits off of overdraft fees by posting charges in order of the largest dollar amount first, increasing the likelihood that not only are customers more likely to overdraft their accounts, but more likely to do so multiple times.

10. Three financial institutions were charged with forcing homeowners to buy overpriced property insurance.

11. Nearly one-fifth of employees at the biggest banks reported that more and more jobs had been moved from full-time to part-time.

This blog originally appeared on aflcio.org on April 21, 2015. Reprinted with permission.

Author’s name is Kenneth Quinnell.  He is a long-time blogger, campaign staffer and political activist.  Before joining the AFL-CIO in 2012, he worked as labor reporter for the blog Crooks and Liars.  Previous experience includes Communications Director for the Darcy Burner for Congress Campaign and New Media Director for the Kendrick Meek for Senate Campaign, founding and serving as the primary author for the influential state blog Florida Progressive Coalition and more than 10 years as a college instructor teaching political science and American History.  His writings have also appeared on Daily Kos, Alternet, the Guardian Online, Media Matters for America, Think Progress, Campaign for America’s Future and elsewhere.

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