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    Sarah Bloom Raskin Faces a Contentious Senate Hearing

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    Sarah Bloom Raskin is a longtime Washington policy player with progressive credentials and a track record of speaking out against the fossil fuel industry, qualities that helped her to win the White House’s nomination to be America’s top bank cop.But those same views could leave her with a narrow path to confirmation as the Federal Reserve’s vice chair for supervision — especially if Senator Ben Ray Luján, a New Mexico Democrat who is recovering from a stroke, is not present for her vote before the full Senate. (A senior aide to Mr. Luján said he was expected to make a full recovery, and would return in four to six weeks, barring complications.)And Ms. Raskin’s views are almost certain to ignite sparks at her hearing before the Senate Banking Committee on Thursday.Ms. Raskin has been nominated alongside Lisa D. Cook and Philip N. Jefferson, both economists up for seats on the Fed’s Board of Governors. Ms. Raskin, Dr. Cook and Dr. Jefferson will field questions from the Senate Committee on Banking, Housing and Urban Affairs at 8:45 a.m. on Thursday.Ms. Raskin, a former Fed governor and high-ranking Treasury official who was most recently a professor at Duke Law School, is seen as a known entity by the banking industry that she would oversee. But business groups have been critical of her attention to climate issues — including an opinion piece she wrote in 2020 criticizing the Fed’s decision to design one of its emergency loan programs in a way that allowed fossil fuel companies to access emergency loans.“I’m deeply concerned that Sarah Bloom Raskin has — let’s be honest, she has explicitly, publicly advocated that the Fed use its powers to allocate capital,” Senator Patrick J. Toomey of Pennsylvania, the top Republican on the committee, said in an interview on Tuesday. “I think that’s disqualifying, and I think that is going to be a topic of discussion.”Such full-throated opposition from Republicans may mean more than just a heated hearing — Ms. Raskin may need to maintain the support of every Democrat in the Senate to stay on the narrow path to confirmation. If Democrats were to lose their fragile grasp on the Senate majority because Mr. Luján has not returned yet, it is not clear that she would garner the votes she would need to pass.Fed nominees need a simple majority to clear the Senate Banking Committee and then to win confirmation from the Senate as a whole, meaning that it is possible that Ms. Raskin could skate through if all 50 senators who caucus with Democrats vote in her favor, with Vice President Kamala Harris breaking a tie.Vice chair for supervision is arguably the most important job in American financial regulation, and given those high stakes, Ms. Raskin’s chances are being closely watched.“I’m not expecting her to get many, if any, Republican votes,” said Ian Katz, a managing director at Capital Alpha Partners, explaining that he thinks she will ultimately secure enough Democratic support to pass, assuming all the Senators, including Mr. Luján, vote. “You hear different things from the industry: You hear some concerns that she is too progressive, but you also hear that she’s well within the mainstream.”Oil and gas businesses are mounting a campaign against more decisive climate monitoring by the Fed, worried that the central bank will subject banks to stringent oversight that dissuades them from lending money to the industry. This could bring skeptical questioning for all three nominees.“I am concerned about all of the Fed nominees and their apparent willingness, despite what some of them said, to include bank and financial regulations designed to prohibit legal industries from operating in the United States borrowing money,” Senator Jerry Moran of Kansas, a Republican who sits on the committee, said on Wednesday.Mr. Toomey said during an interview on Wednesday that he also had some reservations about Dr. Cook.Lisa D. Cook, a Michigan State University economist well known for her work in trying to improve diversity in economics, will also face questions from the committee on Thursday.Brittany Greeson for The New York TimesMuch of the opposition coming from Republicans and lobbyists alike is aimed at Ms. Raskin, though. She argued in a Project Syndicate column recently that “all U.S. regulators can — and should — be looking at their existing powers and considering how they might be brought to bear on efforts to mitigate climate risk.”But Ms. Raskin struck a gentler tone in her prepared testimony for the hearing, released Wednesday night, noting that the role does not involve excluding certain sectors and asserting that bank supervisors must ensure that “the safety of banks and the resilience of our financial system are never compromised in favor of short-term political agendas or special interest groups.”It is unclear at this point whether those assurances will be enough for her critics.The Chamber of Commerce, in a letter to the Senate committee last week, urged lawmakers to ask Ms. Raskin about her position on whether the Fed’s regulatory approach should try to curb credit access for oil and gas companies. The business group asked whether Ms. Raskin would be independent of politics. After Democratic members of the Federal Deposit Insurance Corporation board clashed with and ultimately precipitated the resignation of the Trump appointee Jelena McWilliams, who was the regulator’s chairwoman, some Republicans have raised concerns that something similar could happen at the Fed. In December, partisan politics helped to scupper the nomination of Saule Omarova, who withdrew herself from consideration to be comptroller of the currency after attacks from Republicans and banking lobbyists, and as she struggled to draw wide enough support from Democrats.By contrast, the banking industry has taken a more benign view of Ms. Raskin. The Financial Services Forum, which represents the chief executive officers of the largest banks, congratulated Ms. Raskin and the other White House Fed picks in a statement after their nominations were announced, as did the American Bankers Association.Ms. Raskin is seen as a qualified candidate who understands the roles various regulators play in overseeing banks, according to one banking industry executive who asked not to be identified discussing regulatory matters. Even though bankers expect Ms. Raskin to be confirmed, they are awaiting more clarity around her stance on climate finance and disclosures, the executive said.As she is received as a mainstream pick, centrist Democrats have sounded content with Ms. Raskin.“I’ve been very impressed with her,” Senator Mark Warner, Democrat of Virginia, said on Tuesday, adding that he had not met her yet but that he was “favorably inclined” and noting that banks have expressed comfort with her.Senator Joe Manchin III from West Virginia, a key centrist Democrat, said on Wednesday that he hadn’t yet studied the nominees, adding that he’s “going to get into that” because he’s “very concerned” about issues including inflation.A Harvard-trained lawyer, Ms. Raskin is a former deputy secretary at the Treasury Department, where she focused on financial system cybersecurity, among other issues. She also spent several years as Maryland’s commissioner of financial regulation. Ms. Raskin is married to Representative Jamie Raskin, a Maryland Democrat.If confirmed, she would be only the second person formally appointed as the Fed’s vice chair for supervision, succeeding Randal K. Quarles, a Trump administration pick who typically favored lighter and more precise regulation. Ms. Raskin, by contrast, has a track record of calling for stricter regulation. Dr. Cook and Dr. Jefferson might both might be quizzed about their views on policy and professional backgrounds. The Fed has seven governors — including its chair, vice chair and vice chair for supervision — who vote on monetary policy alongside five of its 12 regional bank presidents. Governors hold a constant vote on regulation.Philip N. Jefferson, an administrator and economist at Davidson College who has worked as a research economist at the Fed, is also a nominee for the Fed’s board.John Crawford/Davidson CollegeDr. Cook, who would be the first Black woman ever to sit on the Fed’s board, is a Michigan State University economist well known for her work in trying to improve diversity in economics. She earned a doctorate in economics from the University of California, Berkeley, and was an economist on the White House Council of Economic Advisers under President Barack Obama.“High inflation is a grave threat to a long, sustained expansion, which we know raises the standard of living for all Americans and leads to broad-based, shared prosperity,” Dr. Cook said, after emphasizing her decades of experience, calling tackling America’s current burst in prices the Fed’s “most important task.”Dr. Jefferson, who is also Black, is an administrator and economist at Davidson College who has worked as a research economist at the Fed. He has written about the economics of poverty, and his research has delved into whether monetary policy that stokes investment with low interest rates helps or hurts less-educated workers.He seconded that the Fed must “ensure that inflation declines to levels consistent with its goals,” speaking in his prepared testimony.Dr. Cook, Dr. Jefferson, and Ms. Raskin are up for confirmation alongside Jerome H. Powell — who had previously been renominated as Fed chair — and Lael Brainard, a Fed governor who is the Biden administration’s pick for vice chair. Senator Sherrod Brown of Ohio, the committee chairman, said all five candidates will face a key committee vote on Feb. 15, and that Senator Chuck Schumer of New York, the majority leader, “knows to move quickly” for a full floor vote.If all pass, the Fed’s leadership will be the most diverse in both race and gender that it has ever been — fulfilling a pledge of Mr. Biden’s to make the long heavily male and white central bank more representative of the public that it is intended to serve. More

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    As Infrastructure Money Flows, Wastewater Improvements Are Key

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    The new law allocates $11.7 billion for wastewater and stormwater projects. Will it get to the impoverished communities who need it most?HAYNEVILLE, Ala. — What babbles behind Marilyn Rudolph’s house in the rural countryside is no brook.A stained PVC pipe juts out of the ground 30 feet behind her modest, well-maintained house, spewing raw wastewater whenever someone flushes the toilet or runs the washing machine. It is what is known as a “straight pipe” — a rudimentary, unsanitary and notorious homemade sewage system used by thousands of poor people in rural Alabama, most of them Black, who cannot afford a basic septic tank that will work in the region’s dense soil.“I’ve never seen anything like it. It’s kind of like living with an outhouse, and I can never, ever get used to it,” said Ms. Rudolph’s boyfriend Lee Thomas, who moved in with her three years ago from Cleveland.“I’ve lived with it all my life,” said Ms. Rudolph, 60.If any part of the country stands to see transformational benefits from the $1 trillion infrastructure act that President Biden signed in November, it is Alabama’s Black Belt, named for the loamy soil that once made it a center of slave-labor cotton production. It is an expanse of 17 counties stretching from Georgia to Mississippi where Black people make up three-quarters of the population.About $55 billion of the infrastructure law’s overall funding is dedicated to upgrading systems around the country that handle drinking water, wastewater and stormwater, including $25 billion to replace failing drinking-water systems in cities like Flint, Mich., and Jackson, Miss.Hayneville’s town square. The infrastructure package targets funding toward “disadvantaged” areas like Hayneville and surrounding towns, part of the Biden administration’s goal of redressing structural racism.Charity Rachelle for The New York TimesLess attention has been paid to the other end of the pipe: $11.7 billion in new funding to upgrade municipal sewer and drainage systems, septic tanks, and clustered systems for small communities. It is a torrent of cash that could transform the quality of life and economic prospects for impoverished communities in Alabama, Mississippi, North Carolina, Oklahoma, Illinois, Michigan and many tribal areas.In this part of Alabama, the center of the civil rights struggle 60 years ago, the funding represents “a once-in-a-lifetime chance to finally make things right, if we get it right,” said Helenor Bell, the former mayor of Hayneville in Lowndes County, who runs the town’s funeral home.But while the funding is likely to lead to substantial improvements, there are no guarantees it will deliver the promised benefits to communities that lack the political power or the tax base to employ even the few employees needed to fill out applications for federal aid.“I am very worried,” said Catherine Coleman Flowers, a MacArthur fellow whose 2020 book “Waste” highlighted the sanitation crisis in Lowndes County. “Without federal intervention, we would have never had voting rights. Without federal intervention, we will never have sanitation equity.”Mark A. Elliott is an engineering professor at the University of Alabama who works with an academic consortium that is designing a waste system optimized for the region’s dense clay soil. He said he was concerned that more affluent parts of the state might siphon off federal assistance intended for the poor.“My hope is that at least 50 percent of this money goes to the people who are in most desperate need, not for helping to subsidize the water bills of wealthy communities,” Mr. Elliott said. “Sanitation is a human right, and these people need help.”Straight pipes are just one element of a more widespread breakdown of antiquated septic tanks, inadequate storm sewers and poorly maintained municipal systems that routinely leave lawns covered in foul-smelling wastewater after even a light rainstorm.The infrastructure package targets funding toward “disadvantaged” areas like Hayneville and surrounding towns, part of the Biden administration’s goal of redressing structural racism. Yet the infrastructure package gives states broad latitude in how to allocate the funding, and it contains no new enforcement mechanisms once the money is out the door.A PVC pipe behind Ms. Rudolph’s house spews raw wastewater whenever someone flushes the toilet or runs the washing machine.Matthew Odom for The New York TimesThe wastewater funding is moving through an existing federal-state loan program that typically requires partial or complete repayment, but under the new legislation, local governments with negligible tax bases will not have to pay back what they borrow. As an additional enticement, Congress cut the required state contribution from 20 percent to 10 percent.“A lot of people know that the bill isn’t just about drinking water, but the wastewater part is just as important,” said Senator Tammy Duckworth, Democrat of Illinois, who helped draft the provisions after assisting two small cities in her state, Cahokia Heights and Cairo, upgrade failing sewer systems that flooded neighborhoods with raw sewage.The Environmental Protection Agency, which is administering the program, said in November that the first tranche of funding for drinking water and wastewater projects, $7.4 billion, would be sent to states in 2022, including about $137 million for Alabama.Biden administration officials are confident the scale of the new spending — which represents a threefold increase in clean water funding over the next five years — will be enough to ensure poor communities gets their fair share. “We want to change the way E.P.A. and states work together to ensure overburdened communities have access to these resources,” said Zachary Schafer, an agency official overseeing the implementation of the program. But major questions remain — including whether individual homeowners without access to municipal systems can tap the money to pay for expensive septic systems — and the guidelines will not be ready until late 2022. While the revolving loan fund is generally regarded as a successful program, a study last year by the Environmental Policy Innovation Center and the University of Michigan found that many states were less likely to tap revolving loan funds on behalf of poor communities with larger minority populations.Alabama’s revolving loan fund has financed few projects in this part of the state in recent years, apart from a major wastewater system upgrade in Selma, according to the program’s annual reports.The water funding is not likely to be divvied up in Alabama until later this year. The Republican-controlled state legislature is still negotiating with Gov. Kay Ivey, a Republican, over what to do with tens of millions of dollars allocated through the $1.9 trillion stimulus package Mr. Biden signed in March.A flooded yard in Hayneville in 2019. Straight pipes are just one element of a more widespread infrastructure breakdown in the area.Julie Bennett/Associated PressEvery member of the state legislature is up for re-election next year, and legislators from bigger, more powerful communities in Birmingham, Huntsville and Mobile, eager to deliver to voters, have already begun preparing their applications.The Infrastructure Bill at a GlanceCard 1 of 5The bill receives final approval. More

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    Ifeoma Ozoma Blew the Whistle on Pinterest. Now She Protects Whistle-Blowers.

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    Ifeoma Ozoma, who accused Pinterest of discrimination, has become a key figure in helping tech employees disclose, and fight, mistreatment at work.Last month, Gov. Gavin Newsom of California signed a bill to expand protections for people who speak up about discrimination in the workplace.A new website arrived to offer tech workers advice on how to come forward about mistreatment by their employers.And Apple responded to a shareholder proposal that asked it to assess how it used confidentiality agreements in employee harassment and discrimination cases.The disparate developments had one thing — or, rather, a person — in common: Ifeoma Ozoma.Since last year, Ms. Ozoma, 29, a former employee of Pinterest, Facebook and Google, has emerged as a central figure among tech whistle-blowers. The Yale-educated daughter of Nigerian immigrants, she has supported and mentored tech workers who needed help speaking out, pushed for more legal protections for those employees and urged tech companies and their shareholders to change their whistle-blower policies.She helped inspire and pass the new California law, the Silenced No More Act, which prohibits companies from using nondisclosure agreements to squelch workers who speak up against discrimination in any form. Ms. Ozoma also released a website, The Tech Worker Handbook, which provides information on whether and how workers should blow the whistle.“It’s really sad to me that we still have such a lack of accountability within the tech industry that individuals have to do it” by speaking up, Ms. Ozoma said in an interview.Her efforts — which have alienated at least one ally along the way — are increasingly in the spotlight as restive tech employees take more action against their employers. Last month, Frances Haugen, a former Facebook employee, revealed that she had leaked thousands of internal documents about the social network’s harms. (Facebook has since renamed itself Meta.) Apple also recently faced employee unrest, with many workers voicing concerns about verbal abuse, sexual harassment, retaliation and discrimination.Connie Leyva, a California state senator, center, wrote the Silenced No More Act, which was signed into law last month.Chelsea Guglielmino/FilmMagic, via Getty ImagesMs. Ozoma is now focused on directly pushing tech companies to stop using nondisclosure agreements to prevent employees from speaking out about workplace discrimination. She has also met with activists and organizations that want to pass legislation similar to the Silenced No More Act elsewhere. And she is constantly in touch with other activist tech workers, including those who have organized against Google and Apple.Much of Ms. Ozoma’s work stems from experience. In June 2020, she and a colleague, Aerica Shimizu Banks, publicly accused their former employer, the virtual pinboard maker Pinterest, of racism and sexism. Pinterest initially denied the allegations but later apologized for its workplace culture. Its workers staged a walkout, and a former executive sued the company over gender discrimination.“It’s remarkable how Ifeoma has taken some very painful experiences, developed solutions for them and then built a movement around making those solutions a reality,” said John Tye, the founder of Whistleblower Aid, a nonprofit that provides legal support to whistle-blowers. He and Ms. Ozoma recently appeared on a webinar to educate people on whistle-blower rights.Meredith Whittaker, a former Google employee who helped organize a 2018 walkout over the company’s sexual harassment policy, added of Ms. Ozoma: “She has stuck around and worked to help others blow the whistle more safely.”Ms. Ozoma, who grew up in Anchorage and Raleigh, N.C., became an activist after a five-year career in the tech industry. A political science major, she moved to Washington, D.C., in 2015 to join Google in government relations. She then worked at Facebook in Silicon Valley on international policy.In 2018, Pinterest recruited Ms. Ozoma to its public policy team. There, she helped bring Ms. Banks on board. They spearheaded policy decisions including ending the promotion of anti-vaccination information and content related to plantation weddings on Pinterest, Ms. Ozoma said.Yet Ms. Ozoma and Ms. Banks said they faced unequal pay, racist comments and retaliation for raising complaints at Pinterest. They left the company in May 2020. A month later, during the Black Lives Matter protests, Pinterest posted a statement supporting its Black employees.Ms. Ozoma and Ms. Banks said Pinterest’s hypocrisy had pushed them to speak out. On Twitter, they disclosed their experiences as Black women at the company, with Ms. Ozoma declaring that Pinterest’s statement was “a joke.”In a statement, Pinterest said it had taken steps to increase diversity.By speaking out, Ms. Ozoma and Ms. Banks took a risk. That’s because they broke the nondisclosure agreements they had signed with Pinterest when they left the company. California law, which offered only partial protection, didn’t cover people speaking out about racial discrimination.Peter Rukin, their lawyer, said he had an idea: What if state law was expanded to ban nondisclosure agreements from preventing people speaking out on any workplace discrimination? Ms. Ozoma and Ms. Banks soon began working with a California state senator, Connie Leyva, a Democrat, on a bill to do just that. It was introduced in February.“I’m just so proud of these women for coming forward,” Ms. Levya said.Along the way, Ms. Ozoma and Ms. Banks fell out. Ms. Banks said she no longer spoke with Ms. Ozoma because Ms. Ozoma had recruited her to Pinterest without disclosing the discrimination there and then excluded her from working on the Silenced No More Act.“Ifeoma then cut me out of the initiative through gaslighting and bullying,” Ms. Banks said.Ms. Ozoma said she had not cut Ms. Banks out of the organizing. She added that Ms. Banks had “felt left out” because news coverage focused on Ms. Ozoma’s role.Understand the Facebook PapersCard 1 of 6A tech giant in trouble. More

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    Can Progress on Diversity Be Union-Made?

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    Staring at the wall of glass clawing its way up the unfinished facade of the Winthrop Center in downtown Boston — 53 floors of commercial and residential space soaring 690 feet — Travis Watson isn’t interested in the grandeur of the thing. He wants to know who’s working on it.“It doesn’t pass the eye test,” he scoffs: In a city whose non-Hispanic white population has dwindled to 45 percent, it’s hard to see Black and brown faces on the site.He has more than his eyesight to go by. In 2018, Mayor Martin J. Walsh — now President Biden’s labor secretary — appointed Mr. Watson to lead the Boston Employment Commission, the body created to monitor compliance with the Boston Residents Jobs Policy. The policy mandates giving a minimum share of work to city residents, women and people of color on large private construction projects and those that are publicly funded.The latest version of the ordinance, from 2017, requires that Asian, Black and Latino workers get at least 40 percent of the work hours on sanctioned projects to better reflect the city’s demographics. (It also mandates that 51 percent of the hours go to city residents and 12 percent to women.) Mr. Watson complains that while many projects fail to meet the benchmarks, nobody is penalized.When the commission reviewed the Winthrop Center project in mid-September, when it was roughly halfway done, only 32 percent of the hours worked had gone to people of color. Other downtown projects have similar shortfalls. In September, even a project to renovate City Hall — the building where the targets were written and the Employment Commission meets — was shy of the mark.“We should be going higher,” Mr. Watson said. “This is a floor.”Boston is one of the nation’s most solidly Democratic cities. It just elected Michelle Wu, an outspoken progressive, as mayor by a resounding margin. She campaigned heavily on a promise to expand opportunities for minority businesses and to empower workers and communities of color with the sort of policy proposals that led to the creation of the Employment Commission — proposals aimed at ensuring that lucrative opportunities are fairly distributed. But the projects underway in Boston show how much harder it is to deliver on goals of racial equity than to set them.In Boston and beyond, building is one of the last American industries offering good jobs to workers without a college degree. The prospect of trillions of dollars of new federal funding for infrastructure projects under Mr. Biden’s Build Back Better program is raising hopes that roads, bridges, railways, wind farms, electric grids and water mains could provide millions of good construction jobs for a generation or more.What infuriates Mr. Watson is that, as he views it, unions for the building trades are the main impediment keeping people of color from building sites. He recalls one of his appearances before Boston’s City Council: “A councilor got up to say this is a union city,” he said. “For me, he was saying this is a white city, a city for white workers.”This tension has opened an uncomfortable rift between elements of the nation’s traditional Democratic coalition. Prominent advocates of racial equity push for Black and Hispanic contractors, whose operations are often small and nonunion but hire a lot of workers of color.Unions push back against the charges, sometimes forcefully, arguing that the growing number of apprentices of color indicates an embrace of diversity. In the first three months of this year, for example, nearly 30 percent of apprentices across the building trades in Massachusetts were nonwhite, up from 24 percent six years earlier.The unions also contend that nonunion contractors and their allies are cynically using a discussion of racial diversity to exploit workers.“The most vocal critics of our vigorous, intentional and ongoing efforts to improve our diversity, equity, and inclusion practices are often directly employed, funded, or formally aligned with nonunion special interest groups,” Renee Dozier, business agent of a Boston area local of the International Brotherhood of Electrical Workers, said in a statement. Many critics, she added, “have a direct profit motive to see wage and safety conditions watered down in one of America’s most dangerous industries, construction.”Mr. Watson shrugs off such criticism.The 38-year-old son of a white mother and a Black father, a graduate of Brandeis University with a major in African and African American studies, Mr. Watson is a former community organizer in the predominantly Black neighborhood of Roxbury and North Dorchester, south of downtown.He is employed as a director of racial equity and community engagement at the Massachusetts Housing Investment Corporation, a nonprofit group that offers financing for affordable housing and other community projects.He is deeply frustrated by what he views as the naked discrimination barring Black and Latino workers from the high-paying construction jobs that offer a path into the middle class. He is exasperated that unions generally won’t disclose the racial and ethnic mix of the workers in their halls — aside from apprentices, which they are obliged to report — and suggests that it is because the numbers would show their lack of diversity.He also grew frustrated by the inability of the Employment Commission to do anything about all this. As the law stands, he noted, contractors must only go through the motions to prove they are making an honest effort to comply.By last month, he had had enough. He resigned.Travis Watson, who resigned as the head of the Boston Employment Commission, views unions as the primary obstacle keeping people of color from building sites.The Pipeline IssueUnions for the building trades — laborers and electricians, plumbers and metalworkers — are largely to thank for ensuring that construction work is a middle-class job. The unions have bargained successfully for decent wages, and for health and pension benefits. They train workers and monitor safety conditions on building sites.Gatekeeping is also one of their functions, particularly in a union-friendly city like Boston. Unions run apprenticeships, which confer and certify the requisite skills, controlling the pipeline of workers into the profession.Who gets a job at downtown projects like the Winthrop Center or the City Hall renovation, where large unionized contractors and subcontractors do a vast majority of the work, is often decided in the union hall, which handles calls from contractors and makes assignments from a list of out-of-work journeymen and women.City data suggests that workers of color got 38 percent of the hours on projects subject to the ordinance last year. This year, between April and September, the share actually hit the target of 40 percent, it said. But there’s a stark difference in the jobs that whites and nonwhites get: Minority workers in 2020 did 76 percent of the work removing asbestos, where the mandated base wage set for projects like the City Hall renovation is usually around $40 an hour. By contrast, they got only 22 percent of the plumber hours, which pay around $60.“The pipeline issue is a real one, and I do think there’s a lack of diversity in the pipeline,” said Celina Barrios-Millner, the chief of equity and inclusion in Boston’s departing city government. “Any time you see outcomes that are so skewed, you have to understand there is discrimination somewhere down the line.”Some union officials acknowledge the issue. When the City Hall project came up for discussion at the Boston Employment Commission in May, Commissioner Charles Cofield, an organizer for the North Atlantic States Regional Council of Carpenters, which covers New York and New England, argued that “the main part of the pressure needs to go to the people supplying the manpower.” That means the business agents at the union locals.Elmer Castillo, an immigrant from Honduras who rose to be vice president of Local 723 of the carpenters’ union for a couple of years, has long experience with the ways of the building trades unions. “Unions are good if you know how to work with them,” he said. But equality of opportunity between white and minority workers? Mr. Castillo says, “That doesn’t exist.”Workers are supposed to be selected for a job based largely on how long they’ve been unemployed. But nepotism rules in the union hall, Mr. Castillo contends. Business agents trade favors with contractors. They will place their sons, cousins and nephews in the good jobs, and they will make sure that those sons, cousins and nephews follow them up the union ranks.“This builds a chain that never ends, a chain of whites,” Mr. Castillo said. “One will never have the opportunity to achieve what they achieve.”Craig Ransom, now the business manager at Local 346 of the carpenters’ union, offers his career as an example of the glass ceiling Black workers face. After rising to business manager at Local 723, he got stuck — blocked from what he says would be his natural progression to regional manager. “Unions are good for people that look like me,” Mr. Ransom said. “But at the very top level, there is no one that looks like me.”The conflict between white insiders and Black or Hispanic outsiders clamoring for an opportunity has bedeviled unions since the dawn of the labor movement. Even after the Civil Rights Act of 1964 ended officially sanctioned discrimination, race often trumped class solidarity. Many unions discriminated against workers of color, and many employers turned to workers of color to cross union picket lines.A few years later, President Richard M. Nixon leaned into the conflict between unions and African Americans, embracing the so-called Philadelphia Plan, which required federal contractors to prove they were hiring minority workers to match the ethnic composition of the area where work was being done. It would create “a political dilemma for the labor union leaders and civil rights groups,” said John Ehrlichman, a Nixon adviser, driving a wedge between two pillars of Democratic politics.“Unions are good for people that look like me,” said Craig Ransom, the business manager at Local 346 of the carpenters’ union. “But at the very top level, there is no one that looks like me.”Labor unions have come a long way since then. One reason is that far more workers of color are in the labor force, and many unions want to organize them, including the Service Employees International Union and UNITE HERE, which covers leisure and hospitality workers.The other reason is that organized labor doesn’t have the clout it once had. “The old bastions of exclusion with strong seniority systems that favored white workers have been decimated,” said Nelson Lichtenstein, a historian of labor at the University of California, Santa Barbara.In the fiscal year that ended Sept. 30, the Equal Employment Opportunity Commission reported fewer than 100 racial-discrimination complaints against unions, about one-third the number brought a decade before. “They don’t have the power they used to have in being involved in hiring,” said Gwendolyn Young Reams, the commission’s acting general counsel.Unions in the building trades remain something of an exception. They are strong, compared with other unions, and retain control over training and hiring, especially in public projects and the large, more heavily regulated construction in union-friendly urban areas. Nearly 13 percent of construction workers are unionized, about double the overall rate across private industries.‘Driving the Ship’Maven Construction is not a union contractor. It is an open shop, meaning it has not signed a deal to employ only union workers. Its founder and chief executive, JocCole Burton, a Black woman, knows that limits the kind of work she can do. But she also understands the cost of signing up with the unions.“Every single college or university in the region, every hospital and all public work requires union labor,” said Ms. Burton, who founded Maven in Atlanta and moved it to Boston four years ago. “Anything that is downtown and most work in the Boston metro is going to require union labor.”The exception is affordable-housing projects, which bring in nonunion contractors to keep costs down, Ms. Burton said. Still, open-shop contractors are mostly limited to smaller projects. “The largest project we’ve done is $35 million,” she said, with jobs worth $5 million to $10 million more typical.She is seeking to make Maven a “signatory” contractor, to have a shot at more lucrative work. But the arrangement is expensive: The benefits and other obligations add up, and they are hard to afford if you don’t have a steady stream of big projects.More problematic for Ms. Burton is that she expects unions to provide few workers of color. “The unions are in the business of making sure that the union halls get all the work, but they don’t have enough Black and brown bodies in their halls,” she said.Ms. Burton says she is shocked by what she sees as overt discrimination in such a liberal city. “The racism experienced 50 years ago in Atlanta is the same we see in Boston today,” she said. “It’s subtle — not as overt — but it is the same.” A crucial problem, she argues, “is the unions are driving the ship when it comes to equity.”Union officials contend that much of the criticism is unfair. A report from Local 103 of the International Brotherhood of Electrical Workers noted that while people of color made up only 4 percent of retired electricians drawing a pension in the last five years, they accounted for almost 30 percent of their apprentices, a testament to how much it has evolved.“There is no denying that unions in many industries, including construction, just like corporations in many industries, have a troubling past when it comes to diversity, equity and inclusion,” said Ms. Dozier, the business agent for Local 103. “But we are doing more every day to increase the diversity of our membership than almost any other industry — and frankly, it is unethical of the nonunion lobbyists and their mouthpieces to try and turn that important work into an excuse to further their own exploitative practices.”The site of the City Hall renovation project. In Boston and beyond, building is one of the last American industries offering good jobs to workers without a college degree. Mark Erlich, who retired in 2017 as executive secretary-treasurer of the New England Regional Council of Carpenters and is now a research fellow with the Labor and Worklife Program at Harvard Law School, argues that construction unions have become more welcoming to nonwhites in the last few decades.Mr. Erlich is one of the authors of a book addressing the history of racial exclusion in the building trades. He notes that the original Boston Residents Jobs Policy in 1983 came out of the fight by Black workers for jobs on building sites. But it had to include residents and women to gain white political support and overcome the opposition of union leadership.“There is a legacy of racism, which by no means has been eliminated,” Mr. Erlich said. “I respect folks in the community that complain that things are not changing fast enough. And they are not changing fast enough.” Still, he argues, unions realize that “they need to become less homogeneous and reflect the demographics of the city.”And he warns that the nonunion contractors that will hire workers of color do not generally provide training or a career path, as unions do. The work is often more dangerous, he says, and it pays nothing like the wages in union shops.The Limits of PatienceWorkers of color who make it into the unions acknowledge the opportunities that membership provides. On a sunny October afternoon in Dorchester, a roomful of apprentices and journeymen and women, assembled by Local 103 to talk to a reporter, lauded the union’s efforts to broaden its ranks and called for patience.“Diversity doesn’t happen overnight,” said Sam Quaratiello, a recent graduate of the apprenticeship program who is of Asian descent. Walter Cowhan, a Black journeyman, argued that the union had become far more diverse in his 20 years of experience. Still, he said, if workers of color are to become more prominent on job sites, training is essential. “If you don’t prepare the work force, directly bringing in Black and brown workers could undermine the whole process,” he said.But among some of those pushing for racial equity, patience is wearing thin. Mr. Watson offered the words of the Black author and activist James Baldwin: “You’ve always told me it takes time,” Mr. Baldwin said in the 1989 documentary “The Price of a Ticket.” “How much time do you want, for your progress?”The building unions are “huge obstacles” to that progress, said Angela Williams-Mitchell, who heads the Boston Jobs Coalition, a community organization dedicated to increasing opportunities for people of color. “They do not open their doors to create access for communities that have historically been excluded.”If they are so committed to diversity, she says, why do unions refuse to provide data on the share of minority journeymen and women, even as they disclose the racial and ethnic breakdown of apprentices? “Break it down for us so we know what needs to be done,” she urges.Unions remain essential to maintain construction’s track record of lifting workers up, Mr. Erlich says. He recalls one of Mr. Watson’s heroes, the late Chuck Turner, a community activist who fought to increase Black employment in the building trades. “He was the ultimate radical — his attitude was, let’s drive the unions into the sea,” Mr. Erlich said. “But he came around to the position that without unions, construction would become a low-wage job.”Mr. Watson, in fact, agrees. “Unions are great,” he said. “But they have to give us an opportunity.” More

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    ‘Black Capitalism’ Promised a Better City for Everyone. What Happened?

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    ROCHESTER, N.Y. — The Panther Graphics printing plant sits along a row of red brick buildings and empty parking lots on the edge of a circular highway that separates this city’s downtown from a largely Black neighborhood to the north. Nearby, there is a warehouse, a Baptist Church and a billboard that warns “A Shot from A Gun Can’t Be Undone,” a reference to Rochester’s soaring murder rate.Tony Jackson, the owner of Panther Graphics, grew up here, the oldest of six children. His mother died when he was 13 and his father served time in Attica, the nearby state prison. But Mr. Jackson said he always had “ink in his blood” — a helpful trait in a city dominated by the giant film and copying companies Kodak and Xerox — and he found his calling in commercial printing.Mr. Jackson named his company, which produces labels for the grocery chain Wegmans and health care enrollment packets for Blue Cross Blue Shield, after the Black Panther Party. “It represents being Black and being strong,” he said.Today, in Mr. Jackson’s office, there is a photo of his son breaking a tackle as a running back on the Duke University football team and also a large painting of four men — Martin Luther King Jr., Malcolm X, Nelson Mandela and Barack Obama — gathered around a table, smiling.“I have always wanted people in this neighborhood to see what is possible,” he said.But Panther Graphics is the product of a complicated legacy. The company is one of the few sizable, Black-owned employers operating in Rochester, a city of 200,000 people, 40 percent of whom are Black.There was a time, though, when Rochester was on the cutting edge of Black “community capitalism” — an effort to create companies owned, staffed and managed largely by Black people that could lift up the broader community.Just as giant corporations have pledged billions to help combat racism and support Black Americans in the wake of George Floyd’s murder, corporate investments in Black businesses were seen as an antidote to racial unrest in the 1960s, a way to ease the tensions that threatened the reputations of burgeoning corporate hubs like Rochester.Some of those efforts in Rochester were quite bold and innovative at the time. Looking back now though, the long term challenges of achieving those ambitions shows the limits of social activists partnering with big business and how such efforts may not make a substantial dent in the systemic issues of poverty and racism affecting the broader Black community. It is a disheartening case study for the many companies that have made public commitments to promote equity and inclusion this year.Nearly 60 years ago, Xerox teamed up with a Black power group to create a factory that made vacuums and other parts for copying and film processing and was partly owned by its work force.For decades, Kodak and Xerox — both with large operations in Rochester — dominated the city’s business landscape.Recently, Rochester has dealt with a rising murder rate and municipal unrest.That company, which was eventually called Eltrex Industries, provided hundreds of manufacturing jobs to Black residents, including Mr. Jackson, who credits his experience there with providing the skills and connections he needed to start his own business.As part of an effort to promote more racial equity, Xerox also recruited Black engineers and technicians to Rochester, including Ursula Burns, who rose to become the first Black woman to lead a Fortune 500 company as chief executive officer.Eventually, Eltrex shut its doors in 2011. Its challenges were blamed on a mixture of racism and its reliance on winning contracts from Xerox and Kodak, which were fighting for their own survival in a digital age and whose ability to support the venture became more limited.Some community leaders say the company and its corporate sponsors veered from its mission by focusing on profit while shedding its Black activist identity.“With as many corporate entities as Rochester has, you wouldn’t think it would have such a large poor Black population,” said Dennis Bassett, a former executive at Kodak and Bausch + Lomb, who is Black and moved to Rochester in the 1970s.That contrast seems even more stark these days, after a particularly tumultuous time for the city, which is the nation’s third poorest, by one measure, after Detroit and Cleveland.Lovely Warren, the first woman and second African American to be the city’s mayor, was indicted in July on weapons charges after her 10-year-old child was left alone in her home where police found a pistol and rifle. Ms. Warren pleaded not guilty.The city was also roiled last year by the death of a Black man, Daniel Prude, who was handcuffed on a frigid street by Rochester police officers and had a mesh hood put over his head because they said he was having a psychotic episode. Video of the confrontation, which led to Mr. Prude’s death, came out months later, prompting protests in Rochester. In February, the police pepper-sprayed a nine-year-old Black girl at her home, setting off more protests that joined a larger national conversation about race and policing.The widespread protests throughout the country led corporate America to pledge billions of dollars in investments to Black-owned businesses and to ramp up hiring of African Americans.But following through may be a challenge, the way likeit was in Rochester.Tony Jackson owns Panther Graphics, one of the few sizable, Black-owned companies in Rochester.Malik Evans, who won the Democratic nomination for mayor, said the city needs to create more small- and medium-size businesses.Despite decades of investments, Eltrex failed to grow to its fullest potential and spawn a large number of other community-owned companies as many had hoped it would.“This could have been the nation’s first billion dollar Black-owned business and the start of many others,” Mr. Jackson said of Eltrex. “But it failed to adapt.”‘We wanted a factory’When the head of Xerox Joseph Wilson drove up to the headquarters of the organization in 1964, the Rev. Franklin Florence remembers there was still smoke in the air from the protests erupting around Rochester over the lack of affordable housing for Black people.The F.I.G.H.T. organization was an umbrella group made up of Black churches, tenant associations and even book clubs that used their collective strength to organize protests around any issue affecting the membership.Many of Rochester’s corporate leaders were shaken by the protests, but it was Mr. Wilson who took the step in 1964 of reaching out to Mr. Florence, the head of F.I.G.H.T. — short for Freedom, Independence, God, Honor, Today — to ask how Xerox could help.“Joseph Wilson asked what we wanted,” Mr. Florence recalled in an interview. “We told him we wanted a factory.”Mr. Florence had gained national attention during the civil rights movement with his campaign against Eastman Kodak, the city’s largest and most influential company, which had employed relatively few Black residents.He was a polarizing figure in Rochester who led protests at Kodak’s annual shareholder meeting, an embarrassment to the founding Eastman family and a warning to other companies about the power of social activism to disrupt their businesses.Eltrex’s original factory building was torn down a decade ago after a vehicle smashed into the first floor and burst into flames.A photo of the Rev. Franklin Florence at Central Church of Christ. He gained national attention in the early days of the civil rights movement with his campaign against Eastman Kodak.Mr. Wilson of Xerox assigned one of his executives in Europe to set up the plant. The company that would run it would be called Fighton.Some of Fighton’s first products were vacuums and parts for electrical transformers. A portion of the company was owned by the employees and the rest by the F.I.G.H.T. organization which ran a neighborhood housing project called F.I.G.H.T. Village, near the factory. Xerox lent managers to help train the workers.Among the efforts to support Black business amid the unrest of the 1960s, Fighton represented something new.“They wanted to try capitalism, but they wanted it to happen in a socialist way,’’ said Laura Warren Hill, a history professor at Bloomfield College in New Jersey, and the author of “Strike the Hammer: The Black Freedom Struggle in Rochester, NY 1940-1970.” “They wanted it to have a human face and to help the underserved.”The role of the city’s big corporations in this initiative also stood out.“You have Xerox working with a Black power group,” Ms. Hill said, “to shape what Black capitalism is going to look like.”Matt Augustine, Eltrex’s longest serving chief executive, said his approach to hiring was to give employees first and often “second chances.”Changing leadership and a nameOutside of Rochester, though, Fighton was not always so well received. The name seemed to be a big part of its problem.“The people we were trying to do business with would ask ‘What does this Fight mean? Fight who?’” recalled Matthew Augustine, the company’s longest serving chief executive.In 1976, Mr. Augustine was recruited to become C.E.O. by a friend from Harvard Business School who was on the board of Fighton.The F.I.G.H.T. organization had gone through an internal power struggle, with Mr. Florence eventually losing his leadership role. At the time, the factory was not profitable and in danger of shutting down, Mr. Augustine said.The Fighton board wanted Mr. Augustine, a native of Louisiana, to shift the business model to be “more personal profit orientated” and less focused on the community benefit, he said.Residents of F.I.G.H.T. Village, a housing project near where the old Eltrex factory stood.The board agreed to give Mr. Augustine ownership of most of the company and he eventually amassed an 80 percent stake.One of his first moves was changing the company’s name from Fighton, which was seen as too militant in the business community, to Eltrex Industries — a mashup of Electrical, Transformer and Xerox.In addition to manufacturing, the rebranded company started selling office supplies and offering snow removal and mail processing services. Under Mr. Augustine’s watch, Eltrex was meant to be a one-stop shop for companies seeking to fulfill their minority-owned business goals.Mr. Augustine said his approach to hiring was to give many employees first and often “second chances.” Some workers were still incarcerated and came to and from the factory from jail each day.Rochester had other Black-owned businesses but many tended to be restaurants, barbershops and other service-focused enterprises. At its height, Eltrex employed 350 people, mostly Black and Hispanic workers, in “prideful jobs” Mr. Augustine said. It generated $20 million in sales and was profitable.Kodak, which had been initially reluctant to get involved because of its contentious relationship with the F.I.G.H.T. organization, also agreed to do business with Eltrex, Mr. Augustine said.Despite it financial success, Mr. Florence’s son Clifford Florence said Eltrex was straying from its original mission.“They lost sight of the advocacy that they should be doing for the poor and began to look at the money,” he said.Mr. Jackson went to work at Eltrex in the late 1980s. He got the opportunity to supervise employees and to work in sales, where he made valuable connections. He looked enviously at Mr. Augustine’s office, his Mercedes and house in the suburbs. “That’s what inspired me to start my own business,” Mr. Jackson said.In 1993, Mr. Jackson left Eltrex to start Panther Graphics. One of his biggest accounts came from Xerox. In a few years, Mr. Jackson also had a house in the suburbs and a cabin on Lake Ontario with a pontoon boat.Several years ago, Mr. Jackson drove his Porsche to visit a friend in north Rochester and handed him cash to buy them beer. A few minutes later, the police surrounded Mr. Jackson and his sports car. An officer threatened to search him, suggesting that the cash was for a drug deal. The police eventually left, he said, but did not apologize for their mistake.“I am not going to cry about it because what good does that do?” Mr. Jackson said.‘I bit my tongue more than I wish’In her memoir published in June, Ms. Burns describes how the very top executives at Xerox and the longtime board member Vernon Jordan mentored her throughout her career. She praised Mr. Wilson, who is credited with founding Xerox, for taking an “enlightened” approach to diversity.Some community leaders say the Eltrex company and its corporate sponsors veered from their mission by focusing on profit and deliberately shedding its Black activist identity.“Why is it that we have none of these people working here?” Mr. Wilson said, according to Ms. Burns’s book. Mr. Wilson remarked that he could not run a “great company” where Black people and women he saw outside his window were “literally not here.”While Mr. Wilson and other executives set a supportive tone at the top, these efforts by Xerox and the city’s other large companies did not always change attitudes across the broader Rochester community, some local leaders say. Ms. Burns, who is retired from Xerox, declined to comment.Eltrex was regularly recognized with awards for the quality of its products. Yet, Mr. Augustine would hear rumblings from people in the local business community about the need to improve quality control at Eltrex.Eltrex was also paying a higher interest rate than other companies — something Mr. Augustine learned after he was appointed to the board of a local bank.“People ask, ‘Why weren’t you a billion dollar company?,” said Mr. Augustine. “But they don’t understand the environment we were operating in.”“When you hear about the folks burning down Black Wall Street. This stuff is real. There are people who are absolutely threatened by any kinds of success for Black people and they work to keep you from being successful.”Dennis Bassett spent 50 years in corporate America, including at Kodak and Bausch + Lomb. He wishes the companies would have done more to help the city.Dennis Bassett spent 18 years at Kodak and 17 at Bausch + Lomb. He remembers flying with a top Kodak’s executive on the corporate jet, talking about the need for more diversity. Kodak “did a good job putting people of color in executive positions,” Mr. Bassett said.But those hiring initiatives did not always reach down into the company’s middle management, where many key decisions were made, he said.And even as Xerox and Kodak “were printing money,” the city’s poorest Black residents continued to slide further into poverty, he said. Mr. Bassett faults himself for not pushing the companies to do more to help the city.“Back then, I was chasing the brass ring,” said Mr. Bassett, 73. “I was doing the things I needed to be successful for my career and my family.“I look back and say I bit my tongue more than I wish I had bit my tongue,” he added.In a statement, a Xerox spokesperson said the company has spent millions over many decades supporting science programs for Rochester students and organizing mentorships and other volunteer activities to “help close the poverty gap.”“Giving back to communities throughout the world, particularly underserved communities, is ingrained in our company’s values,” the spokesperson said.Kodak did not respond to requests for comment.Mr. Bassett faced some barriers in Rochester that seemed intractable.Mr. Bassett remembers that when he put his five-bedroom house in an upscale Rochester suburb on the market in the 1980s, the realtor recommended that he take down all the family pictures or any artwork that could indicate that a Black family lived there.“The realtor was matter-of-fact,” Mr. Bassett said. “And guess what? We complied. I just wanted to sell my house.”Clifford Florence, a minister at Central Church of Christ in Rochester, has been trying to get Plymouth Avenue, on which his church resides, named after his father, the Rev. Franklin Florence.A new mayorRochester will have a new mayor in January, most likely a City Council member named Malik Evans.Mr. Evans, who defeated Ms. Warren in the Democratic primary this summer, said the city needs to let go of its identity as a company town dominated by Kodak and Xerox, and become a “town of companies.”“We have older African American residents who had graduated from high school and were getting jobs at Bausch + Lomb and Kodak, and then buying property,” said Mr. Evan. “But then that fizzled.”Mr. Evans said the city should focus on creating more small- and medium-size businesses and that corporate commitments cannot fade as the protests against racism recede.“It can’t become just another flavor of the month,’’ he said. “We always look back a few years later and say, ‘Whatever happened to that.’”A statue of Frederick Douglass, who escaped slavery and became a prominent Black abolitionist. He lived in Rochester for 25 years and was buried there.A mural called “I Am Speaking” featuring John Lewis in downtown Rochester. It was painted by local artists and based on a photograph by the Civil Rights era photographer Danny Lyon.Mural painted by Ephraim Gebre, Darius Dennis, Jared Diaz and Dan HarringtonA forgotten legacyToday, there are no grand monuments to Franklin Florence or the company he helped create. Eltrex’s original factory building was damaged in 2010 after a vehicle smashed into the first floor and burst into flames. The vehicle’s occupants were killed in the crash and the building was demolished.“If you walk down the street in Rochester, not many people know who Franklin Florence is, and I think that is a crime,” said Ms. Hill, the historian. “Whether you love or hate him, he is an important figure.”Even today, there is debate about Eltrex’s legacy. Mr. Augustine, the former C.E.O., said he regretted that he was not able to grow the company’s customer base before Xerox and Kodak began to struggle. But he often found that other companies were not sincerely interested in engaging Black-owned businesses, but only looking like they were.Kodak filed for bankruptcy in 2012., while Xerox restructured its business which resulted in a series of large lay offs at its Rochester facilities. Mr. Augustine said some of Eltrex’s assets were sold and its employees transferred to Cannon Industries, a metal fabricator and one of the other large minority-owned businesses in Rochester.“Could we have done more? Yes,” said Mr. Augustine. “But I am proud of what we accomplished.”Mr. Jackson said Eltrex failed to adapt to life beyond Kodak and Xerox and its problems should not be blamed on racism. “I have to reinvent myself every five years or I die,” he said.For his part, Franklin Florence said he had hoped the original concept of Fighton could have been expanded. He urged the protesters who are pushing to end systemic racism today to keep up the pressure.“There were people back then who said we had to get out of the street and into the boardroom,’’ Mr. Florence said. “Our folk went into the boardrooms and we suffered. And that is where we are today.”Malik Evans, a City Council member, said Rochester needs to let go of its identity as a company town dominated by Kodak and Xerox, and become a “town of companies.” More

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    Who Discriminates in Hiring? A New Study Can Tell.

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    Applications seemingly from Black candidates got fewer replies than those evidently from white candidates. The method could point to specific companies.Twenty years ago, Kalisha White performed an experiment. A Marquette University graduate who is Black, she suspected that her application for a job as executive team leader at a Target in Wisconsin was being ignored because of her race. So she sent in another one, with a name (Sarah Brucker) more likely to make the candidate appear white.Though the fake résumé was not quite as accomplished as Ms. White’s, the alter ego scored an interview. Target ultimately paid over half a million dollars to settle a class-action lawsuit brought by the Equal Employment Opportunity Commission on behalf of Ms. White and a handful of other Black job applicants.Now a variation on her strategy could help expose racial discrimination in employment across the corporate landscape.Economists at the University of California, Berkeley, and the University of Chicago this week unveiled a vast discrimination audit of some of the largest U.S. companies. Starting in late 2019, they sent 83,000 fake job applications for entry-level positions at 108 companies — most of them in the top 100 of the Fortune 500 list, and some of their subsidiaries.Their insights can provide valuable evidence about violations of Black workers’ civil rights.The researchers — Patrick Kline and Christopher Walters of Berkeley and Evan K. Rose of Chicago — are not ready to reveal the names of companies on their list. But they plan to, once they expose the data to more statistical tests. Labor lawyers, the E.E.O.C. and maybe the companies themselves could do a lot with this information. (Dr. Kline said they had briefed the U.S. Labor Department on the general findings.)In the study, applicants’ characteristics — like age, sexual orientation, or work and school experience — varied at random. Names, however, were chosen purposefully to ensure applications came in pairs: one with a more distinctive white name — Jake or Molly, say — and the other with a similar background but a more distinctive Black name, like DeShawn or Imani.What the researchers found would probably not surprise Ms. White: On average, applications from candidates with a “Black name” get fewer callbacks than similar applications bearing a “white name.”This aligns with a paper published by two economists from the University of Chicago a couple of years after Ms. White’s tussle with Target: Respondents to help-wanted ads in Boston and Chicago had much better luck if their name was Emily or Greg than if it was Lakisha or Jamal. (Marianne Bertrand, one of the authors, testified as an expert witness in the trial over Ms. White’s discrimination claim.)This experimental approach with paired applications, some economists argue, offers a closer representation of racial discrimination in the work force than studies that seek to relate employment and wage gaps to other characteristics — such as educational attainment and skill — and treat discrimination as a residual, or what’s left after other differences are accounted for.The Berkeley and Chicago researchers found that discrimination isn’t uniform across the corporate landscape. Some companies discriminate little, responding similarly to applications by Molly and Latifa. Others show a measurable bias.All told, for every 1,000 applications received, the researchers found, white candidates got about 250 responses, compared with about 230 for Black candidates. But among one-fifth of companies, the average gap grew to 50 callbacks. Even allowing that some patterns of discrimination could be random, rather than the result of racism, they concluded that 23 companies from their selection were “very likely to be engaged in systemic discrimination against Black applicants.”There are 13 companies in automotive retailing and services in the Fortune 500 list. Five are among the 10 most discriminatory companies on the researchers’ list. Of the companies very likely to discriminate based on race, according to the findings, eight are federal contractors, which are bound by particularly stringent anti-discrimination rules and could lose their government contracts as a consequence.“Discriminatory behavior is clustered in particular firms,” the researchers wrote. “The identity of many of these firms can be deduced with high confidence.”The researchers also identified some overall patterns. For starters, discriminating companies tend to be less profitable, a finding consistent with the proposition by Gary Becker, who first studied discrimination in the workplace in the 1950s, that it is costly for firms to discriminate against productive workers.The study found no strong link between discrimination and geography: Applications for jobs in the South fared no worse than anywhere else. Retailers and restaurants and bars discriminate more than average. And employers with more centralized personnel operations handling job applications tend to discriminate less, suggesting that uniform rules and procedures across a company can help reduce racial biases.An early precedent for the paper published this week is a 1978 study that sent pairs of fake applications with similar qualifications but different photos, showing a white or a Black applicant. Interestingly, that study found some evidence of “reverse” discrimination against white applicants.More fake-résumé studies have followed in recent years. One found that recent Black college graduates get fewer callbacks from potential employers than white candidates with identical resumes. Another found that prospective employers treat Black graduates from elite universities about the same as white graduates of less selective institutions.One study reported that when employers in New York and New Jersey were barred from asking about job candidates’ criminal records, callbacks to Black candidates dropped significantly, relative to white job seekers, suggesting employers assumed Black candidates were more likely to have a record.What makes the new research valuable is that it shows regulators, courts and labor lawyers how large-scale auditing of hiring practices offers a method to monitor and police bias. “Our findings demonstrate that it is possible to identify individual firms responsible for a substantial share of racial discrimination while maintaining a tight limit on the expected number of false positives encountered,” the researchers wrote.Individual companies might even use the findings to reform their hiring practices.Dr. Kline of Berkeley said Jenny R. Yang, a former chief commissioner of the E.E.O.C. and the current director of the Office of Federal Contract Compliance Programs, which has jurisdiction over federal contractors, had been apprised of the findings and had expressed interest in the researchers’ technique. (A representative of the agency declined to comment or to make Ms. Yang available.)Similar tests have been performed since the 1980s to detect discrimination in housing by real estate agents and rental property owners. Tests in which white and nonwhite people inquire about the availability of housing suggest discrimination remains rampant.Deploying this approach in the labor market has proved a bit tougher. Last year, the New York City Commission on Human Rights performed tests to detect employment discrimination — whether by race, gender, age or any other protected class — at 2,356 shops. Still, “employment is always harder than housing,” said Sapna Raj, deputy commissioner of the law enforcement bureau at the agency, which enforces anti-discrimination regulations.“This could give us a deeper understanding,” Ms. Raj said of the study by the Berkeley and Chicago researchers. “What we would do is evaluate the information and look proactively at ways to address it.”The commission, she noted, could not take action based on the kind of statistics in the new study on their own. “There are so many things you have to look at before you can determine that it is discrimination,” she argued. Still, she suggested, statistical analysis could alert her to which employers it makes sense to look at.And that could ultimately convince corporations that discrimination is costly. “This is actionable evidence of illegal behavior by huge firms,” Dr. Walters of Berkeley said on Twitter in connection with the study’s release. “Modern statistical methods have the potential to help detect and redress civil rights violations.” More

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    The Travel Industry’s Reckoning With Race and Inclusion

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    Tourists, particularly Black travelers, are paying close attention to how destinations and travel service providers approach diversity and equity after a year of social justice protests.Between the Covid-19 pandemic, which brought tourism to a near-complete halt for months on end, and last summer’s protests for social justice, the past year has been one of reckoning for the travel industry on issues of race and inclusivity.In the wake of George Floyd’s killing, everybody from hotel operators to luggage makers declared themselves allies of the protesters. At a time when few people were traveling, Instagram posts and pledges to diversify were easy to make. But now, as travel once again picks up, the question of how much travel has really changed has taken on new urgency.“From the very emergence of the Covid pandemic and especially in the wake of uprisings last summer, there’s a question about place,” said Paul Farber, the director of Monument Lab, a Pennsylvania-based public art and history studio that works with cities and states that want to examine, remove or add historic monuments. “What is the relationship of people and places? Where are sites of belonging? Where are sites where historic injustices may be physically or socially marked?”Monument Lab is one of several organizations, groups and individuals trying to change the way travelers of all colors understand America’s racially fraught history. Urging people to engage with history beyond museums and presentations from preservation societies is one approach.In turn, many travelers are paying close attention to whether companies are following through with their promises from last year. Black travelers, in particular, are doubling down on supporting Black-owned businesses. A survey released earlier this year by the consulting firm MMGY Global found that Black travelers, particularly those in the United States, Canada, Britain and Ireland, are keenly interested in how destinations and travel service providers approach diversity and have indicated that it has an influence on their travel decision-making.At Monument Lab, questions about belonging, inclusion and how history memorializes different people were coming up frequently over the past year, Mr. Farber said, particularly from travelers looking to learn about Confederate and other monuments while road tripping.In response, Monument Lab, which examines the meaning of monuments, created an activity guide called Field Trip, which allows people to pause on their trips to learn about specific monuments. On a worksheet, participants are prompted to question who created the monuments, why they were made and what they represent.The statue of Nathan Bedford Forrest, a slave trader, Confederate general and Ku Klux Klan leader, was removed from Health Sciences Park in Memphis, Tenn. in 2017. Like many other monuments in the United States, it had become a polarizing presence. Yalonda M. James/The Commercial Appeal, via Associated PressIn creating Field Trip, it became clear to Mr. Farber that there is a strong interest from travelers to learn about Black history. This sentiment is echoed by tour operators who offer Civil Rights and other social-justice-oriented tours like those focusing on the contributions of Black Americans, women and figures in the L.G.B.T.Q. community.“There are a lot of white people who for the first time have had a conversation about racial justice and maybe even heard the words ‘systemic racism’ for the first time,” said Rebecca Fisher, founder of Beyond the Bell Tours, a Philadelphia-based operator of social-justice-oriented tours that highlight marginalized communities, people and histories. “People heard the new words and now they want to learn. That doesn’t mean that it is backed up with results, but I am seeing a trend in interest.”On a tour with Beyond the Bell guests might, for example, participants hear about Philadelphia’s President’s House, but they’ll also hear about Ona Judge, an enslaved woman who escaped from George Washington’s home, and about the former president’s efforts to recapture her. One of the company’s most popular tours focuses on gay history in the city.Seeking Black-owned travel businessesBlack travelers, in particular, are increasingly looking for ways to show their support for Black-owned travel businesses.Even as the family road trip has made a comeback in the wake of the coronavirus, that sort of trip hasn’t been a source of unfettered freedom for generations of Black motorists because of Jim Crow laws enforcing racial segregation in America. And now, after a year in which protests of the police killings of Black people amplified the perils of skin color, Black travelers are seeking out Black travel agents, Black hoteliers and Black-owned short-term rentals in addition to organizing in groups dedicated to Black travelers.In fact, according to the international survey of nearly 4,000 Black leisure travelers by MMGY Global, 54 percent of American respondents said they were more likely to visit a destination if they saw Black representation in travel advertising. In Britain and Ireland, 42 percent echoed that sentiment, and in Canada that number was 40 percent.“Another highly influential factor in the decision-making process is whether the destination is perceived as safe for Black travelers,” the survey noted. “Seventy-one percent of U.S. and Canadian respondents felt safety was extremely or very influential to their decision.”In Facebook groups, Clubhouse chat rooms and across other social media platforms, Black travelers regularly ask one another for recommendations about where to travel, particularly about where others have been where they felt safe and welcome. While these questions are often about foreign destinations, in a year when Americans could largely only travel within the United States, inquiries increasingly arose about where travelers felt safe within the country.“I was just curious on some good and safe locations for a first time solo traveler here in the States,” one woman posted in a group specifically for Black women travelers in June.“Where’s a good ‘safe’ place to travel in the States?” asked another woman who was planning a 35th birthday trip with her sister.This type of community gathering, though now online, isn’t new. For decades, African American travelers have looked to one another for guidance on where to travel. The most referenced form was Victor Hugo Green’s Green Book, a guide for Black travelers that was published annually from 1936 to 1966.Last summer, facing an onslaught of messaging from travel companies saying that they supported the Black Lives Matter movement and would be committing to diversifying their ranks and finding other ways to be more inclusive, Kristin Braswell, the owner of CrushGlobal, a company that works with locals around the world to plan trips, decided to make the inclusion of Black businesses central to her work.As a Black woman with a passion for travel, she started making travel guides that focused on supporting Black businesses. Each guide, whether it be to national parks, beach towns or wine country, provides information on businesses owned by Black people as well as guidance about diversity in the area and more.“These road trips and initiatives that speak to people of color in general are important because we’ve been left out of travel narratives,” Ms. Braswell said. “If you’re going to be creating experiences where people are going out into the world, all people should be included in those experiences.”Ms. Braswell added that the bulk of her business comes from Black travelers. These travelers, she said, are looking for Black travel advisers who have the knowledge of places where they are welcomed and can help them plan their trips. Over the past year travelers across racial backgrounds have been increasingly asking for tours and experiences that include Black-owned businesses, she said.Across the country, as people protested against police brutality, travelers demanded to see more travelers who looked like them in advertising; they spoke out against tourism boards that hadn’t been inclusive in the past and formed organizations like the Black Travel Alliance, calling for more Black travel influencers, writers and photographers to be employed.The Alliance and others have been pushing for more Black travelers to be visible and included in the industry and in spaces of leisure travel.Going beyond museumsAt the same time, tour providers like Free Egunfemi Bangura, the founder of Untold RVA, a Richmond-based organization, are offering tours that center on the contributions of Black people. In a city such as Richmond, which was once a capital of the Confederacy, she said that means seeing the value of working outside the established system of preservation societies and museums that are typically run by white leadership.To Ms. Bangura and other activists, artists and tour operators, museums and traditional preservation societies are part of the culture of exclusion that has historically left Black people out and continues to present versions of history that focus on white narratives. Ms. Bangura’s tours take place on the streets of the city as a better way to understand the local history.At a time when state legislatures are pushing for and passing laws that limit what and how much students learn about the contributions of Black and other marginalized people to the country, Ms. Bangura and others said, tours that show their contributions are even more important.“There is a way to take these experiences out of the hands of the traditional preservation community, so you don’t have to go into the walls of a museum,” Ms. Bangura said, adding that another reason institutions like museums aren’t optimal is because some people aren’t keen to visit them. “But think of how often it is that after you come outside of a Black-owned coffee shop, you’re actually able to hear about some of the Black people in that neighborhood or people that fought for Black freedom.”Kalela Williams, the founder of Black History Maven, leads a tour in Philadelphia’s Seventh Ward.Whitney IngramAdditionally, although the tourism industry took a hit last year, outdoor activities continued to draw visitors, making outdoor tours like Ms. Bangura’s and Ms. Fisher’s of Beyond the Bell popular. Ms. Bangura said the style of her offerings makes them accessible for all travelers, especially those without access to smartphones for scanning QR codes or those unable to take part in headphone-aided tours.Among the several kinds of tours and experiences Ms. Bangura has created is Black Monument Avenue, a three-block interactive experience in Richmond’s majority-Black Highland Park neighborhood. Visitors can drive through and call a designated phone line with unique access codes to hear songs, poems and messages about each installation. Every August, she runs Gabriel Week, honoring Gabriel Prosser, an enslaved man who led a rebellion in the Richmond area in 1800.“I call him brother General Gabriel,” Ms. Bangura said, adding that in her work, she encourages “people to decolonize their history by making sure that history is being told from the language of the oppressed, not the language of the oppressor.”Walking tours, for those who go on them, also provide a visceral sense of history that differs from the experience of a museum. Even as the National Museum of African American History and Culture has attracted record numbers of visitors to Washington, D.C., tours like Ms. Bangura’s can provide a more local perspective and show visitors exactly where something significant happened.“We can find community in walking together, we can find community in exploring a neighborhood together, and we can find a sense of where we are, we can find a sense of where folks have been and we can find common ground,” said Kalela Williams, the founder of Black History Maven, a Philadelphia company that primarily offers walking tours of the city that focus on Black history.“It’s important to see where things were, how things were working in relation to one another,” she said. “You can see the proximity of folks’ houses and schools and churches. You can imagine how folks would have walked around and navigated and visited each other in a way that you might not in a museum.”THE WORLD IS REOPENING. LET’S GO, SAFELY. 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    in Economy

    Cryptocurrency Seeks the Spotlight, With Spike Lee’s Help

    by

    The filmmaker’s commercial for a crypto company is one of many recent marketing efforts to make digital cash palatable for newbies.Before Spike Lee accepted cryptocurrency, he turned down Crocs.Years ago, the filmmaker rejected an offer to buy into the Colorado company that makes perforated foam clogs, a decision that caused him to miss out when its stock soared on the strength of the footwear fad.“I wish I would’ve given some money back then,” Mr. Lee said in a recent interview. “Anytime something is new, you’re going to have people who are going to be skeptical. With some of the best ideas, people thought the inventors were crazy.”Now he has taken a leap into another cultural craze, having agreed to direct and star in a television commercial for Coin Cloud, a company that makes kiosks for buying and selling Bitcoin and other virtual currencies. Although cryptocurrency is not widely used for transactions, an increasing number of merchants now accept it as payment.The commercial, which he shot last month, is one of several recent marketing efforts meant to broaden the audience for a form of currency that can intimidate people accustomed to cash and credit cards.Mr. Lee, outfitted nattily in a straw hat and gold-tipped cane while filming part of the commercial on Wall Street, led a diverse cast that included his daughter Satchel, the “Pose” actress Mj Rodriguez and the drag queen Shangela. Other shoot locations included Fort Greene Park and the Chillin’ Bar and Grill in Washington Heights, where breakfast patrons craned to catch a glimpse of the director as he filmed a Coin Cloud machine on the sidewalk.“Old money is not going to pick us up; it pushes us down,” Mr. Lee says in the commercial, which portrays the cryptocurrency system as a more accessible and equitable alternative to traditional, discriminatory financial institutions.“The digital rebellion is here,” he says.Cryptocurrency has also been known to intimidate investors, with its extreme volatility and the overwhelming number of virtual alternatives, known as coins. The marketing of this relatively new money has so far been limited mostly to ads on trade websites and targeted pushes on social media, where aficionados swap meme-fueled in-jokes about coin values rocketing to the moon.The industry is increasingly betting that celebrities can help demystify cryptocurrency for the uninitiated.The actor Alec Baldwin offered crisp definitions of cryptocurrency in a series of online ads for the crypto trading platform eToro, and the National Football League star Tom Brady signed on as a brand ambassador for FTX, a crypto exchange that also has a deal to sponsor Major League Baseball.Alec Baldwin is advertising for the cryptocurrency trading platform eToro.eToroThe actor Neil Patrick Harris recently appeared in a TV commercial for the digital currency kiosk operator CoinFlip. “Now anyone, anywhere, can turn cash into crypto!” he declares.EToro and Coinbase, another exchange, collectively spent $22.8 million on advertising last year, nearly double the $12.4 million they shelled out in 2019, according to the research firm Kantar. In recent months, Coinbase hired the Martin Agency, the advertising company behind GEICO and DoorDash.As Madison Avenue fields more inquiries from cryptocurrency clients, agency executives are feeling pressure to better communicate the investment risks, rather than romanticize the industry.“I get very nervous because I start looking at the way that some of the platforms are specifically targeting younger investors,” said Alex Hesz, the chief strategy officer of the advertising giant DDB Worldwide. In the face of frenzied cryptocurrency trading, ad agencies should push for moderation and diversification, he said. “Maximizing is what’s being encouraged here — the idea that this is an amazing asset, and as much as you want to put in, come on and jump on in, the Bitcoin’s lovely,” Mr. Hesz said. “We would never feel comfortable for an alcohol client, or a high-salt or high-sugar or high-fat client, to encourage that level of unequivocal behavior.”Some celebrity endorsements of cryptocurrencies have run into trouble. In 2017, the Securities and Exchange Commission cautioned that some famous people were hyping the virtual currency sales known as initial coin offerings without disclosing that they had been paid to promote them. The commission has since settled charges against the boxer Floyd Mayweather Jr., the music producer DJ Khaled and the actor Steven Seagal.Social media influencers and e-sports stars have also been linked to shady cryptocurrency schemes, accused of pumping up coins just before their value crashes.Coin Cloud’s chief marketing officer, Amondo Redmond, said he hoped Mr. Lee’s stature would help elevate the industry by delivering something “more than just cool creative, but that is really at the forefront of digital currency becoming mainstream.”“It’s more than just adding a celebrity face,” he said.Mr. Lee, who won an Oscar in 2019 in the best adapted screenplay category for “BlacKkKlansman,” has worked on ads for Capital One, Uber and, most famously, Nike. In the 1980s and 1990s, he directed and starred in commercials for Air Jordans, playing his cinematic alter ego Mars Blackmon opposite Michael Jordan.“That was lightning in a bottle,” Mr. Lee said from a flight bound for the Cannes Film Festival, where he is the first Black person to lead the festival jury.He declined to say how much he had been paid for the Coin Cloud commercial, but noted that “if anyone’s known my body of work over the last four decades, you kind of know about the way I see the world, and when they approached me, it fit in line.”As the coronavirus pandemic continues to highlight financial disadvantages for people of color, Mr. Lee hopes to promote cryptocurrency as neutral to race, gender, age and other identifying characteristics.But he was no expert before filming began, and had to take “a crash course” on crypto. He insisted that the commercial include a line urging viewers to do their own research on virtual money.Mr. Lee said he now planned to invest in virtual coins. He said he would not, however, go anywhere near the digital ownership certificates known as nonfungible tokens.“NFTs, I don’t understand that,” he said, laughing. “I’m old school, so sometimes my children have to turn on the TV — all those remotes and stuff.” More