More stories

  • in

    California’s Economy Pinched by Unemployment

    Tech layoffs, fallout from Hollywood strikes and an uptick in rural joblessness challenge a state with one of the nation’s highest unemployment rates.For decades, California’s behemoth economy has outpaced those of most nations, holding an outsize role in shaping global trends in tech, entertainment and agriculture.While that reputation remains, the state has a less enviable distinction: one of the nation’s highest unemployment rates.Nationwide, the rate is 3.7 percent, and in January, the country added 353,000 jobs. California’s job growth has been slower than the nationwide average over the last year, and the unemployment rate remains stubbornly high — 5.1 percent in the latest data, a percentage point higher than a year earlier and outpaced only by Nevada’s 5.4 percent.With layoffs in the tech-centered Bay Area, a slow rebound in Southern California from prolonged strikes in the entertainment industry and varying demand for agricultural workers, California is facing economic headwinds in the new year. And residents feel it.The state has historically had higher unemployment than the U.S. average because of a work force that is younger and fast growing, said Sarah Bohn, a senior fellow at the Public Policy Institute of California. Still, she noted, the labor force shrank in California in the past six months — a troubling trend.“When looking at this shrinking, are there less opportunities and people have just stopped looking for work?” Ms. Bohn asked. “What will this mean for consumers and businesses?”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Retail Group Retracts Startling Claim About ‘Organized’ Shoplifting

    The National Retail Federation had said that nearly half of the industry’s $94.5 billion in missing merchandise in 2021 was the result of organized theft. It was likely closer to 5 percent, experts say.A national lobbying group has retracted its startling estimate that “organized retail crime” was responsible for nearly half the $94.5 billion in store merchandise that disappeared in 2021, a figure that helped amplify claims that the United States was experiencing a nationwide wave of shoplifting.The group, the National Retail Federation, edited that claim last week from a widely cited report issued in April, after the trade publication Retail Dive revealed that faulty data had been used to arrive at the inaccurate figure.The retraction comes as retail chains like Target continue to claim that they are the victims of large shoplifting operations that have cut into profits, forcing them to close stores or inconvenience customers by locking products away.The claims have been fueled by widely shared videos of a few instances of brazen shoplifters, including images of masked groups smashing windows and grabbing high-end purses and cellphones. But the data show this impression of rampant criminality was a mirage.In fact, retail theft has been lower this year in most of the country than it was a few years ago, according to police data. Some exceptions, including New York City, exist. But in most major cities, shoplifting incidents have fallen 7 percent since 2019.Organized retail crime, in which multiple individuals steal products from several stores to later sell on the black market, is a real phenomenon, said Trevor Wagener, the chief economist at the Computer & Communications Industry Association, who has conducted research on retail data. But he said organized groups were likely responsible for just about 5 percent of the store merchandise that disappeared from 2016 to 2020.He emphasized that there’s “a lot of uncertainty and imprecision” in measuring losses, because it is difficult to parse out what is shoplifting and what is organized crime.Mr. Wagener testified in Congress in June about the discrepancy in the National Retail Federation’s report.Even as it retracted the figure and revised the report, the federation, which has more than 17,000 member companies, insisted in an emailed statement that its focus on the problem was appropriate.“We stand behind the widely understood fact that organized retail crime is a serious problem impacting retailers of all sizes and communities across our nation,” the statement said. “At the same time, we recognize the challenges the retail industry and law enforcement have with gathering and analyzing an accurate and agreed-upon set of data.”At issue is “total annual shrink” — the industry term for the value of merchandise that disappears from stores without being paid for, through theft, damage and inventory tracking mistakes.Mary McGinty, a spokeswoman for the federation, said the error was caused by an analyst from K2 Integrity, an advisory firm that helped produce the report.The analyst, who was not named, linked a 2021 National Retail Federation survey with a quote from Ben Dugan, the former president of the advocacy group Coalition of Law Enforcement and Retail, who said in Senate testimony in 2021 that organized retail crime “accounts for $45 billion in annual losses for retailers.”Mr. Dugan was citing the federation’s 2016 National Retail Security Survey, which was actually referring to the overall cost of shrink in 2015 — not the amount lost to just organized retail crime, Ms. McGinty said.Alec Karakatsanis, a civil rights lawyer who has studied and critiqued how the media has covered organized retail crime, said that the retraction underscored how some news organizations, which have extensively covered the issue of shoplifting, were “used as a tool by certain vested interests to gin up a lot of fear about this issue when, in fact, it was pretty clear all along that the facts didn’t add up.”One of the most prominent examples came in October 2021, when Walgreens said it would close five stores in San Francisco, citing repeated instances of organized shoplifting. The company’s decision had come months after a video seen millions of times showed a man, garbage bag in hand, openly stealing products from a Walgreens as others watched.But an October 2021 analysis by The San Francisco Chronicle showed that Police Department data on shoplifting did not support Walgreen’s explanation for the store closings.Eventually, Walgreens retreated from its claims. In January, an executive at the company said that Walgreens might have overstated the effects on its business, saying: “Maybe we cried too much last year.”Mr. Karakatsanis said the exaggerated narrative of widespread shoplifting was weaponized by the retail industry as it lobbied Congress to pass bills that would regulate online retailers, which they claim is where much of the stolen product ends up.Commentators and politicians have seized on the issue. Earlier this year, Gov. Gavin Newsom, Democrat of California, responded to reports of large-scale thefts in the state with a call for tough prosecution of shoplifters and a plan to invest millions of dollars to fight “organized retail theft.” Gov. Ron DeSantis, Republican of Florida, signed a bill last year aimed at retail theft, and former President Donald J. Trump called for violence, telling Republican activists in California this year that the police should shoot shoplifters as they are leaving a store.Mr. Wagener, the chief economist at the Computer & Communications Industry Association, said that the National Retail Federation’s report in April immediately stuck out to him as wrong. The error was troubling, he said, because the federation has long been viewed as a trusted provider of data for the industry.What made the federation’s mistake even more surprising, Mr. Wagener said, was how starkly the figure contrasted to the group’s own previous findings.In 2020, the federation said in a report that organized retail crime cost retailers an average of $719,548 per $1 billion in sales — a number that would point nowhere near the roughly 50 percent claim made in the April report.Another National Retail Federation survey showed that all external theft — including thefts unrelated to organized retail crime — accounted for 37 percent of shrink, a figure that would still be billions of dollars less than the incorrect estimate of 50 percent made in April.“It would be a bit like the census claiming that nearly half of the U.S. population lives in the state of Rhode Island,” Mr. Wagener said. More

  • in

    Defying Industry, California Lawmakers Vote for Employer-Paid Food Training

    The legislation would require state employers — not workers — to pay for mandatory safety instruction. It awaits the governor’s decision.The California Legislature is moving to require employers to compensate food service employees for the cost of food safety training mandated by the state’s public health laws. If signed into law, the legislation would overturn a common practice in which employees cover the expense of obtaining the certification themselves.The measure, Senate Bill 476, which cleared the State Senate by a wide margin in May, passed the Assembly on Tuesday, 56 to 18. After a Senate vote on concurrence with amendments, the bill will be sent to Gov. Gavin Newsom, who has not signaled whether he will sign it or veto it. Asked for comment for this article, the governor’s office said it had nothing to report.The bill’s sponsors cited a New York Times investigation published in January that showed how the National Restaurant Association, a lobbying group, raises millions of dollars from workers through the fees charged by a food safety training program it administers, ServSafe. The most widely used safety program in the country for food and beverage handling, it is used by waiters, cooks, bartenders and other retail food workers.The restaurant association, a business league representing over 500,000 businesses — along with state affiliates, including the California Restaurant Association — is frequently involved in political battles against increasing the minimum wage or the subminimum wage paid to tipped workers in most states.The investigation found that more than 3.6 million workers nationwide have paid for the industry group’s classes, bringing in roughly $25 million in revenue since 2010. That is more than the National Restaurant Association spent on lobbying during the same period and more than half of the amount association members paid in dues.Labor leaders and some business owners said they were unaware of the arrangement.“I had no idea that’s what they were doing,” said Christopher Sinclair, a restaurant owner from New York now based in Sacramento, who helped organize a push to outlaw the practice.The training, costing about $15 for most workers, involves mastering information in a set of slides, typically over a few days, and then passing a test that lasts about two hours. Much of the information is basic, with lessons like the importance of daily bathing and how to recognize mold on produce. In four of the largest states, including California, such training is mandated by law; in other cases, companies require the training for managers and some employees.The California Restaurant Association and the National Restaurant Association declined to comment for this article, but both have vocally opposed the bill, arguing that workers benefited from training. The “food handler” card received upon completion of the training is portable from job to job, and it is valid for three years before having to be renewed.At a rally with workers outside the State Capitol on Tuesday evening after the Assembly passed the legislation, Saru Jayaraman, the leader of the labor-advocacy group One Fair Wage, said the legislation could have an impact beyond California.“They are using that money from low-wage workers to fight us all over the country,” she said, referring to the restaurant association. “The biggest part of this bill is that it will stop the flow of cash from two million workers in California to the nation’s largest restaurant lobby.”Member dues typically make up a large share of funding for industry business leagues. But executives with the National Restaurant Association have noted that dues make up a small portion of the group’s revenue compared with ServSafe and other business initiatives. More

  • in

    Restaurants Agree to Raise Pay to $20 an Hour in California

    The deal will avoid a ballot fight over a law passed last year that could have resulted in higher pay and other changes opposed by restaurant companies and franchisees.Labor groups and fast-food companies in California have reached an agreement that will pave the way for workers in the industry to receive a minimum wage of $20 per hour.The deal, which will result in changes to Assembly Bill 1228, was announced by the Service Employees International Union on Monday, and will mean an increase to the minimum wage for California fast-food workers by April. In exchange, labor groups and their allies in the Legislature will agree to the fast-food industry’s demands to remove a provision from the bill that could have made restaurant companies liable for workplace violations committed by their franchisees.The agreement is contingent on the withdrawal of a referendum proposal by restaurant companies in California that would have challenged the proposed legislation in the 2024 ballot. Businesses, labor groups and others have often used ballot measures in California to block legislation or advance their causes. The proposed legislation would also create a council for overseeing future increases to the minimum wage and enact workplace regulations.Mary Kay Henry, the president of the S.E.I.U., said the measure in California would be a model for other states. “California fast-food workers’ fight for a seat at the table has reshaped what working people believe is possible when they join together,” she said.Sean Kennedy, the executive vice president of public affairs at the National Restaurant Association, said the deal also benefited restaurants. “This agreement protects local restaurant owners from significant threats that would have made it difficult to continue to operate in California,” he said. “It provides a more predictable and stable future for restaurants, workers and consumers.”Even so, some franchisees said they did not support the deal.“The real issue is who is this impacting the most? It’s the franchisees,” said Keith Miller, a Subway franchisee in Northern California who has become an advocate for the interests of others like him. “There was a lot of back-room dealing that made this happen and no time for anyone to really voice opposition.”Willie Armstrong, the chief of staff for Assemblyman Chris Holden, a Democrat, who is the sponsor of A.B. 1228, said the lawmaker expected the measure to be approved by the Legislature before its session ended on Thursday.Last year, the Legislature passed Assembly Bill 257, a measure Mr. Holden also sponsored, which would have created a council with the authority to raise the minimum wage to $22 per hour for restaurant workers. Gov. Gavin Newsom signed it on Labor Day last year.But the bill met fierce opposition from business interests and restaurant companies, and a petition received enough signatures to put a measure on the November 2024 ballot to stop the law from going into effect.Other business groups in California have successfully used that tactic to change or reverse legislation they opposed.In 2020, ride-sharing and delivery companies like Uber and Instacart campaigned for and received an exemption from a key provision of Assembly Bill 5, which was signed by Mr. Newsom and would have made it much harder for the companies to classify drivers as independent contractors rather than employees.Those companies collected enough signatures to get the issue on the ballot as Proposition 22, which passed in November 2020. More than $200 million was spent on that measure, making it the costliest ballot initiative in the state at the time.And in February, oil companies received enough signatures for a measure that aims to block legislation banning new drilling projects near homes and schools. That initiative will be on the 2024 ballot.In response to calls from advocacy groups who have said the referendum process unfairly benefits wealthy special-interest groups, and in an effort to demystify a system that many Californians say is confusing, Mr. Newsom signed legislation on Sept. 8 that aims to simplify the referendum process.Kurtis Lee More

  • in

    California Panel Calls for Billions in Reparations for Black Residents

    A task force recommended that legislators enact a sweeping program to compensate for the economic harm from racism in the state’s history.A California panel approved recommendations on Saturday that could mean hundreds of billions of dollars in payments to Black residents to address past injustices. The proposals to state legislators are the nation’s most sweeping effort to devise a program of reparations.The nine-member Reparations Task Force, whose work is being closely monitored by politicians, historians and economists across the country, produced a detailed plan for how restitution should be handled to address a myriad of racist harms, including housing discrimination, mass incarceration and unequal access to health care.Created through a bill signed into law by Gov. Gavin Newsom in the wake of the nationwide racial justice protests after the murder of George Floyd in 2020, the panel has spent more than a year conducting research and holding listening sessions from the Bay Area to San Diego.It will be up to legislators to weigh the recommendations and decide whether to forge them into law, a political and fiscal challenge that has yet to be reckoned with.The task force’s final report, which is to be sent to lawmakers in Sacramento before a July 1 deadline, includes projected restitution estimates calculated by several economists working with the task force.One such estimate laid out in the report determined that to address the harms from redlining by banks, which disqualified people in Black neighborhoods from taking out mortgages and owning homes, eligible Black Californians should receive up to $148,099. That estimate is based on a figure of $3,366 for each year they lived in California from the early 1930s to the late 1970s, when federal redlining was most prevalent.To address the impact of overpolicing and mass incarceration, the report estimates, each eligible person would receive $115,260, or about $2,352 for each year of residency in California from 1971 to 2020, during the decades-long war on drugs.In theory, a lifelong state resident who is 71 years old, the average life expectancy, could be eligible for roughly $1.2 million in total compensation for housing discrimination, mass incarceration and additional harms outlined in the report.All of these estimates, the report notes, are preliminary and would require additional research from lawmakers to hash out specifics. The costs to the state were not outlined in the report, but totals from harms associated with housing and mass incarceration could exceed $500 billion, based on estimates from economists.While the panel members considered various methods for distributing reparations — some favored tuition or housing grants and others preferred direct cash payments — they ultimately recommended the direct payments.“The initial down payment is the beginning of a process of addressing historical injustices,” the report reads, “not the end of it.“Kamilah Moore, the chair, and Amos Brown, the vice chair, at the task force meeting on Saturday.Jason Henry for The New York TimesLast year, the task force, which is made up of elected officials, academics and lawyers, decided on the eligibility criteria, determining that any descendant of enslaved African Americans or of a “free Black person living in the United States prior to the end of the 19th century” should receive reparations.Still, on Saturday, there was sometimes contentious debate over clearly expressing the criteria in certain sections of the report — particularly regarding compensation.Should lawmakers pass legislation for payments, the panel suggested that a state agency be created to process claims and render payments, with elderly individuals getting priority. Nearly 6.5 percent of California residents, roughly 2.5 million, identify as Black or African American.“This is about closing the income and racial wealth gap in this country, and this is a step,” Gary Hoover, an economics professor at Tulane University who has studied reparations, said in an interview. “Wealth is sticky and is able to be transferred from generations. Reparations can close that stickiness.”In voting on its final report on Saturday on the Oakland campus of Mills College at Northeastern University, the panel also suggested that state legislators draw up a formal apology to Black residents. A preliminary report made public last year, outlined how enslaved Black people were forced to California during the Gold Rush era and how, in the 1950s and 1960s, racially restrictive covenants and redlining segregated Black Californians in many of the state’s largest cities.In emotional testimony for much of the past year, Black residents have stood before the panel often revealing personal stories of racial discrimination, lack of resources in communities because of redlining and trauma that has had negative effects on health and well-being.While the task force marked the first such effort by a state, a similar measure aimed at creating a commission to explore reparations has stalled in Congress for decades.Representative Barbara Lee speaking during the task force meeting on Saturday.Jason Henry for The New York TimesIn brief remarks before the panel on Saturday, Representative Barbara Lee, a Democrat whose district spans Oakland, lauded the work members have done.“California is leading on this issue,” said Ms. Lee, who is running for the U.S. Senate. “It’s a model for other states in search of reparative damage, realistic avenues for addressing the need for reparations.”The median wealth of Black households in the United States is $24,100, compared with $188,200 for white households, according to the most recent Federal Reserve Board Survey of Consumer Finances. In California, a recent report from the nonpartisan Public Policy Institute of California found for every $1 earned by white families, Black families earn 60 cents — the result of disparities in, among other things, education, and discrimination in the labor market.Assemblyman Reggie Jones-Sawyer, who is one of two state lawmakers on the panel, said he had spoken with Mr. Newsom in recent weeks and expressed optimism that legislation would be approved based on the panel’s report.“The reality is Black Californians have suffered, and continue to suffer, from institutional laws and policies within our state’s political, social, and economic landscape that have negated Blacks from achieving life, liberty and the pursuit of happiness for generations,” said Mr. Jones-Sawyer, who represents a Los Angeles district. “This really is a trial against America’s original sin, slavery, and the repercussions it caused and the lingering effects in modern society.”Mr. Jones-Sawyer said he expected to present some form of legislation early next year.But the efforts and support for racial justice that followed Mr. Floyd’s death are now confronted with an economy that is shadowed by fears of a recession. In January, Mr. Newsom announced that the state faced a $22.5 billion deficit in the 2023-24 fiscal year, a turnaround from a $100 billion surplus a year ago.Nationwide, opinions on reparations are sharply divided by race. Last fall, a survey from the Pew Research Center found that 77 percent of Black Americans say the descendants of people enslaved in the United States should be repaid in some way, while 18 percent of white Americans say the same. Democrats were even split on the issue, with 49 percent opposed and 48 percent in support. Other polls on the issue have found similar splits.Even so, cities across the country have moved forward with reparations proposals. In 2021, officials in Evanston, Ill., a Chicago suburb, approved $10 million in reparations in the form of housing grants.More recently, the San Francisco Board of Supervisors has expressed support for reparations that could offer several million dollars. And in nearby Hayward, Calif., city officials are hearing proposals for reparations for land taken from Black and Latino families in the 1960s.Kamilah Moore, a lawyer who is chair of the California task force, said she was confident that the Legislature would “respect the task force’s official role as a legislative advisory body and work in good faith to turn our final proposals into legislation.”“It will soon be in their hands to act,” Ms. Moore said. More

  • in

    California Economy Is on Edge After Tech Layoffs and Studio Cutbacks

    As recession fears persist, the troubles in major industries have hurt tax revenues, turning the state’s $100 billion surplus into a deficit.California has often been at the country’s economic forefront. Now, as fears of a national recession continue to nag, the state is hoping not to lead the way there.While the California economy maintains its powerhouse status, outranking even those of most countries, the state’s most-powerful sectors — including tech companies and supply chain logistics — have struggled to keep their footing, pummeled by high interest rates, investor skittishness, labor strife and other turmoil.Even the weather hasn’t cooperated. Severe flooding throughout much of the winter, caused by atmospheric rivers, has left farming communities in the Central Valley devastated, causing hundreds of millions of dollars in crop losses.Thousands of Californians have been laid off in the last few months, the cost of living is increasingly astronomical, and Gov. Gavin Newsom revealed in January that the state faced a $22.5 billion deficit in the 2023-24 fiscal year — a plummet from the $100 billion surplus a year ago.“It’s an EKG,” Mr. Newsom said at the time, comparing a graph of the state’s revenue to the sharp spikes and drops of the heart’s electrical activity. “That sums up California’s tax structure. It sums up the boom-bust.”The structure, which relies in large part on taxing the incomes of the wealthiest Californians, often translates into dips when Silicon Valley and Wall Street are uneasy, as they are now. Alphabet, the parent company of Google, one of the state’s most prominent corporations, said in January that it was cutting 12,000 workers worldwide, and Silicon Valley Bank, a key lender to tech start-ups, collapsed last month, sending the federal government scrambling to limit the fallout.This has coincided with a drop in venture capital funding as rising interest rates and recession fears have led investors to become more risk-averse. That money, which declined 36 percent globally from 2021 to 2022, according to the management consulting firm Bain & Company, is critical to Silicon Valley’s ability to create jobs.“The tech sector is the workhorse of the state’s economy, it’s the backbone,” said Sung Won Sohn, a finance and economics professor at Loyola Marymount University. “These are high earners who might not be able to carry the state as much as they did in the past.”Gov. Gavin Newsom, center, said in January that the state faced a $22.5 billion deficit in the 2023-24 fiscal year, after a $100 billion surplus a year ago.Lipo Ching/EPA, via ShutterstockEntertainment, another pillar of California’s economy, has also been in retreat as studios adjust to new viewing habits. Disney, based in Burbank, announced in February that it would eliminate 7,000 jobs worldwide.In California alone, employment in the information sector, a category that includes technology and entertainment workers, declined by more than 16,000 from November to February, according to the latest Bureau of Labor Statistics data, which predates a recent wave of job cuts in March.A recent survey from the nonpartisan Public Policy Institute of California found widespread pessimism about the economy. Two-thirds of respondents said they expected bad economic times for the state in the next year, and a solid majority — 62 percent — said they felt the state was already in a recession.When Mr. Newsom announced the deficit earlier in the year, he vowed not to dip into the state’s $37 billion in reserves, and instead called for pauses in funding for child care and reduced funding for climate change initiatives. Joe Stephenshaw, director of the California Department of Finance, said in an interview that he and top economists had begun to spot points of concern — persistent inflation, higher interest rates and a turbulent stock market — on the state’s horizon during the second half of last year.“Those risks became realities,” said Mr. Stephenshaw, an appointee of the governor.He acknowledged that the problem was driven largely by declines in high earners’ incomes, including from market-based compensation, such as stock options and bonus payments. As activity slowed, he said, interest rates rose and stock prices fell.But the state’s problems aren’t limited to the tech industry.Cargo processing at the Port of Los Angeles in February was down 43 percent from the year before.Alex Welsh for The New York TimesCalifornia’s robust supply chain, which drives nearly a third of the state’s economy, has continued to buckle under stresses from the pandemic and an ongoing labor fight between longshoremen and port operators up and down the West Coast, which has prompted many shipping companies to rely instead on ports along the Gulf and East Coasts. Cargo processing at the Port of Los Angeles, a key entry point for shipments from Asia, was down 43 percent in February, compared with the year before.“The longer it drags on, the more cargo will be diverted,” said Geraldine Knatz, a professor of the practice of policy and engineering at the University of Southern California, who was executive director of the Port of Los Angeles from 2006 to 2014. Still, wherever the economic cycle is leading, California heads into it with some strengths. Although unemployment in February, at 4.3 percent, was higher than in most states, it was lower than the rate a year earlier. In the San Francisco and San Jose metropolitan areas, unemployment was below 3.5 percent, better than the national average.Over decades, California’s economy has historically seen the highest of highs and the lowest of lows, part of the state’s boom-bust history. During the recession of the early 1990s, largely driven by cuts to aerospace after the end of the Cold War, California was hit much harder than other parts of the country.Zeeshan Haque is looking for a job after losing his position as a software engineer at Google. “It’s just very competitive at this time because of so many layoffs,” he said.Mark Abramson for The New York TimesIn March, the U.C.L.A. Anderson Forecast, which provides economic analysis, released projections for both the nation and California, pointing to two possible scenarios — one in which a recession is avoided and another in which it occurs toward the end of this year.“Even in our recession scenario we have a mild recession,” said Jerry Nickelsburg, director of the Anderson Forecast.Regardless of which scenario pans out, California’s economy is likely to be better off than the national one, according to the report, which cited increased demand for software and defense goods, areas in which California is a leader. Mr. Nickelsburg also said the state’s rainy-day fund was healthy enough to withstand the decline in tax revenues. But that shortfall could complicate the speed at which Mr. Newsom can carry out some of his ambitious, progressive policies. In announcing the deficit, Mr. Newsom scaled back funding for climate proposals to $48 billion, from $54 billion.The fiscal outlook also casts a cloud over progressive proposals, widely supported by Democrats, who have a supermajority in the Legislature.A state panel that has been debating reparations for Black Californians is set to release its final report by midyear. Economists have projected that reparations could cost $800 billion to compensate for overpolicing, housing discrimination and disproportionate incarceration rates. Once the panel releases its report, it will be up to lawmakers in Sacramento to decide how much state revenue would support reparations — a concept that Mr. Newsom has endorsed.Through all this, one thing has remained constant: Many Californians say their biggest economic concern is housing costs.The median value for a single-family home in California is about $719,000 — up nearly 1 percent from last year, according to Zillow — and recent census data shows that some of the state’s biggest metro areas, including Los Angeles and San Francisco Counties, have continued to shrink. (In Texas, where many Californians have relocated, the median home value is about $289,000.)Still, some Californians remain optimistic.Zeeshan Haque, a former software engineer at Google, learned in January that he was being laid off. His last day was March 31.“It was out of nowhere and very abrupt,” said Mr. Haque, 32, who recently moved from the Bay Area to Los Angeles.He bought a $740,000 house in the city’s Chatsworth neighborhood in February and spent time focusing on renovations. But in recent weeks, he has begun to look for a new job. He recently updated his LinkedIn avatar to show the hashtag #opentowork and said he hoped to land a new job soon.“It’s just very competitive at this time because of so many layoffs,” he said.Ben Casselman More

  • in

    Can the United Farm Workers of California Rise Again?

    Veronica Mota marched under the sweltering sun, hoisting a cloth banner of Our Lady of Guadalupe above her head for miles.“Sí, se puede,” she chanted in unison with dozens of other farmworkers, who waved U.S. and Mexican flags as they walked along two-lane roads lined by dense orange groves in the Central Valley of California.The banner, flags and rallying cry — “Yes, we can” — echoed back more than half a century to when Cesar Chavez, a co-founder of the United Farm Workers union, led agricultural workers on a pilgrimage along a similar route to meet lawmakers in Sacramento.“We are a legacy of Cesar Chavez,” said Ms. Mota, 47, who, when blisters began to form on her feet during the 24-day trek in August, gathered strength by thinking of how the march in the 1960s led to groundbreaking farmworker reforms and propelled the U.F.W. to national prominence.“We can achieve what we want,” Ms. Mota said.What the farmworkers wanted last summer was for Gov. Gavin Newsom to sign into law a bill that they argued would make it easier and less intimidating for workers to vote in union elections — a key step, they believed, in rebuilding the size and influence of a now far less prolific U.F.W. But changing a rule is not the same as changing the game. The question now is whether the U.F.W. can show it has not irretrievably lost its organizing touch and can regain the ability to mobilize public opinion on its behalf as it did under Mr. Chavez.The union is a shadow of what it was decades ago. Membership hovers around 5,500 farmworkers, less than 2 percent of the state’s agricultural work force, compared with 60,000 in the 1970s. In the same period, the number of growers covered by U.F.W. contracts has fallen to 22 from about 150. The march last summer stood as a reckoning of sorts for a union desperate to regain its relevance.California’s fields provide about half of the produce grown in the United States for domestic consumption.Mark Abramson for The New York TimesFarmworkers at an orange grove outside Fresno.Mark Abramson for The New York TimesU.F.W. officials say they have secured contracts focusing on health coverage.Mark Abramson for The New York TimesLabor organizing has rebounded nationwide in the last few years, with unions winning elections at an Amazon warehouse on Staten Island and at least 275 Starbucks stores, and among white-collar workers in the tech and media industries. But in California’s fields, which supply about half of the produce grown in the United States for the domestic market, such efforts have found little traction.It has been more than five years since the U.F.W. mounted an organizing drive and election petition in the state — at Premiere Raspberries in Watsonville. The U.F.W. unionization vote succeeded, but the company refused to negotiate a contract and in 2020 announced plans to shut down and lay off more than 300 workers.Ms. Mota, who has worked seasonal jobs around the state for two decades, has seen her wages drop by about $6,000 over the last several years. She is now earning around $15,000 a year. She said that on farms without union contracts, bosses sometimes make veiled threats about cutting hours, refuse to give workers breaks in 100-plus degree weather and turn a blind eye to dangerous conditions.“Where we do not have a union contract, there is no respect,” she said in Spanish on a recent morning from her ranch-style home in the farming town of Madera.But the bill backed by Ms. Mota, which Mr. Newsom signed into law after the marchers arrived in Sacramento, has fueled a cautious optimism. Backers say the ability to more freely organize will help them gain more influence.“There is new energy, new legislation and attention from the public in terms of workers’ rights,” said Christian Paiz, a professor of ethnic studies at the University of California, Berkeley, who has researched farm labor in the state. “We could be on the front lines of a renaissance.”The Shadow of Cesar ChavezFarmworkers have, for generations and by design, existed on the fringes of the American work force.The National Labor Relations Act of 1935 excluded farm and domestic workers from federal protections — a decision, rooted in racism, that ensured that the Black, Latino and Asian people whose work opportunities were largely limited to those two industries were not covered.But by the 1960s, momentum for change was building.Farm workers on their march from Delano to Sacramento in 1966.Jon Lewis/Beinecke Rare Book and Manuscript Library, Yale UniversityMr. Chavez, who was a farm laborer picking avocados and peas before becoming a grass-roots organizer, teamed up with Dolores Huerta, a young workers’ rights activist from the Central Valley, and in 1962 they founded the National Farm Workers Association. It became the U.F.W.Labor Organizing and Union DrivesA New Inquiry?: A committee led by Senator Bernie Sanders will hold a vote to open an investigation into federal labor law violations by major corporations and subpoena Howard Schultz, the chief executive of Starbucks, as the first witness.Whitney Museum: After more than a year of bargaining, the cultural institution and its employees are moving forward with a deal that will significantly raise pay and improve job security.Mining Strike: Hundreds of coal miners in Alabama have been told by their union that they can start returning to work before a contract deal has been reached, bringing an end to one of the longest mining strikes in U.S. history.Gag Rules: The National Labor Relations Board has ruled that it is generally illegal for companies to offer severance agreements that require confidentiality and nondisparagement.Three years later, it was a key force behind the Delano grape workers’ strike, in which thousands of Mexican and Filipino farmworkers walked off their jobs, demanding raises from $1.25 to $1.40 an hour, as well as elections that could pave the way for unionization.As the striking farmworkers made their way along the 335-mile trek in 1966, which started in Delano, the group grew steadily, and other unions began to pledge their support.In the Bay Area, longshoremen had refused to load shipments of grapes that hadn’t been picked by unionized workers and, before long, a statewide pressure campaign had become a national one.Weeks after the march began, a lawyer for Schenley Industries, a large Central Valley grape grower that was a target of the boycott, contacted Mr. Chavez, and the company soon agreed to negotiate a contract. It officially recognized the U.F.W., making it the first major corporation to acknowledge a farm union.The grape workers’ strike stretched into the summer of 1970, when widespread consumer boycotts forced major growers to sign on to collective bargaining agreements between the union and several thousand workers.In the years that followed, Mr. Chavez forged a relationship with Gov. Jerry Brown, a Democrat, and helped champion the California Agricultural Labor Relations Act of 1975, which established the right to collective bargaining for farmworkers and created a board to enforce the act and arbitrate labor fights between workers and growers. It was the first law in the country guaranteeing protections to farm workers.Cesar Chavez, center, leader of the National Farm Workers Association, outside a farm in 1966, with supporters bearing signs proclaiming “Strike.” The association was a predecessor of the United Farm Workers.Paul Fusco/Magnum PhotosBut the union’s gains soon began to erode. Mr. Brown’s Republican successor, George Deukmejian, and his appointees made changes to the farm labor board in the 1980s and cut funding, arguing that the adjustments were necessary to correct an “easily perceived bias” in favor of farm workers and the U.F.W. and against growers. And even when the union has won elections, it has often faced legal challenges from growers that can drag on for years.The law that Mr. Newsom signed last year, Assembly Bill 2183, was the union’s biggest legislative victory in years. It paved the way for farmworkers to vote in union elections without in-person election sites. For years, U.F.W. officials argued that dwindling membership numbers stemmed from fears about voting in person at sites often held on properties owned by the growers.The bill faced opposition from growers, who contended that the measure would allow union organizers to unfairly influence the process. Mr. Newsom initially voiced reticence, but signed the measure into law after then-House Speaker Nancy Pelosi and President Biden publicly pushed him to do so.“In the state with the largest population of farmworkers, the least we owe them is an easier path to make a free and fair choice to organize a union,” Mr. Biden said at the time.Supporters of the measure highlight how the demographics of farmworkers have changed over the years. In the 1970s, under Mr. Chavez, many farmworkers were U.S. citizens, but migration from Mexico and Central America in the decades that followed created a work force composed primarily of undocumented workers. Because they lack immigration papers, supporters say, they are especially vulnerable. (Undocumented workers can be covered by labor agreements.)In signing the measure, Mr. Newsom and the U.F.W. agreed to support follow-up compromise legislation that would guard farmworker confidentiality during elections and place limits on card-check voting, a method in which employees sign cards in favor of unionizing.‘We Are Ignored’Last summer, as she marched past vineyards and groves of mandarin oranges, Ms. Mota thought of the harvest cycle that has defined much of her life.She reflected on the dormant season, in December and January, when she prunes pistachio and almond trees, and the rainy months, when it’s sometimes hard to find work. But then comes the prosperous citrus and grape harvests, through the spring and the fall, which always make her think of the families who will eventually toast with wine squeezed from the fruit she plucked from the vine.“I love for my hands to harvest a fruit and then seeing those fruits and vegetables in the restaurant,” Ms. Mota said.U.F.W. supporters marched last year to urge Gov. Gavin Newsom to sign a bill that would make it easier for workers to vote in union elections.Jessica Christian/San Francisco Chronicle, via Associated PressShe thought, too, about the invisibility and dangers of her work — the tiny teeth marks etched into her leather boot by a snake bite, the molehill where she badly sprained her ankle, the co-worker airlifted to San Francisco with injuries.“We are ignored,” she said.Still, she didn’t feel that way during the march, where in many towns people greeted them with snacks, Gatorade and full meals. While the group was in Stockton, an inland port city, Ms. Huerta, now 92, stood before the crowd wearing a baseball cap emblazoned with the words, “Sí se puede.”“You all have made me so proud,” she told them.Ms. Huerta, who helped negotiate the first farmworker contract with Schenley, left U.F.W. leadership more than two decades ago to pursue other causes. But in an interview, she said the need for unionization remained as high as it was when she helped start the union.“Farmworkers wanted the support and still want the support,” said Ms. Huerta, who attributed the dearth of contracts to a refusal by growers to bargain in good faith.Despite setbacks in recent decades, U.F.W. officials say they have continued to secure contracts that focus on health care benefits, wage increases and cultivating a respectful culture between farmworkers and employees. At Monterey Mushrooms, which has operated under a contract since the 1980s, U.F.W. officials say the average annual income for a mushroom picker is $45,000 and includes vacation time and a pension. (The statewide average for farmworkers is between $20,000 and $25,000 a year, according to the U.S. Labor Department.)“With a union contract, workers are educated about their rights and empowered to defend them,” said Teresa Romero, the union’s president.Issues might vary from farm to farm, Ms. Romero said. “In one workplace it may be low wages, in another it may be unsafe conditions, in still another it may be the workplace culture — having to pay bribes or endure sexual harassment to get work or having a particular supervisor who is racist or cruel,” she said. “We understand the immense risks that workers are taking when speaking up on the job; it takes courage for workers to form their union.”Dolores Huerta, a founder of the U.F.W., at a rally in the 1970s.Cathy Murphy/Getty ImagesMs. Romero said she was confident that the new state law — along with a streamlined federal process to protect workers involved in labor disputes surrounding immigration threats from employers — would translate into more bargaining power and more contracts.A Question of StrategySome labor watchers are skeptical of the union’s ability to reinvigorate itself.Miriam Pawel, an author who has written extensively about the union and Mr. Chavez, said the U.F.W.’s decline reflected a shortfall in organizing efforts in the communities where farmworkers live.“It’s evolved more into an advocacy organization and walked away from the more difficult work of organizing,” Ms. Pawel said. Referring to the 1975 labor relations act, she added, “They have the most favorable labor law in the country and have barely taken advantage.”Ms. Pawel cited a 2016 state law mandating that agricultural employers pay overtime if people worked more than eight hours in a day. The union lobbied for the measure, but growers warned that they couldn’t afford to pay overtime and would adjust schedules to avoid doing so. The new overtime rule has been phased in over the years, and some farmworkers have voiced anger about losing hours.“If the union were stronger in the fields, and at organizing, it could have won elections and demanded better overtime provisions in contracts,” Ms. Pawel said.Ms. Romero pushed back against such criticism, arguing that, until Mr. Newsom signed A.B. 2183 in September, many farmworkers had justified fears that, if they sought unionization, their bosses would fire them or even try to get them deported.Indeed, a report by the University of California, Merced, Community and Labor Center found that 36 percent of farmworkers said they would not file a report against their employer for failing to comply with workplace safety rules and that 64 percent cited fear of employer retaliation or job loss.And since the bill’s passage, the Farm Employers Labor Service, a trade group that staunchly opposed the law, has placed advertisements on Spanish-language radio stations, warning about what it means to be in a union. In one ad, a man shouts: “Signing a union petition can lead to the union stealing 3 percent of your salary! Do not let them!”Those messages deeply concern Ms. Romero.“Filing for an election when workers are not protected from genuine risks of retaliation will only lead already poor people into further hardship,” she said. “This is the implicit threat that the growers’ power depends on.”‘They Just Want to Work’Joe Del Bosque at his melon farm in Firebaugh, Calif. He has never had a union contract and plans to keep it that way.Mark Abramson for The New York TimesMany California growers say they can be better bosses without unions.On a recent afternoon off Interstate 5 in the small city of Firebaugh, Joe Del Bosque stared out at bare fields on the melon farm he has owned since 1985. A thick fog hung over the area, and the ground was puddled from rain water. It was the quiet season on the farm, where he employs more than 100 farmworkers annually.Mr. Del Bosque said that when he was a boy, his parents, legal U.S. residents, traveled from a town near the California-Mexico border to the Central Valley to pick melons every summer. As a farm owner, he has never had a union contract, and aims to keep it that way.He provides his employees with good conditions and fair wages, he said, without their having to pay union dues. “From my experience, workers who are moving around from season to season do not want the extra hands involved,” he said of the union. “They just want to work.”He said he had little trouble finding field hands, including migrants who move from farm to farm with each season. And he noted that in the Salinas Valley — closer to the coast, where housing is more expensive — many growers rely on H-2A visas, which let them bring workers, often from Mexico, for just a few months of the year.That impermanence, he said, works against the U.F.W. “If the workers are here only a few months a year and then leave the state, how are you going to organize?” he said.Mr. Del Bosque said that he respected the U.F.W.’s history and the groundwork of Mr. Chavez and Ms. Huerta, but that he opposed A.B. 2183. The law, he contends, will allow the U.F.W. to unfairly sway farmworkers at their kitchen tables and behind closed doors.“That’s the intimidation factor,” Mr. Del Bosque said.A New Spirit of ActivismAsuncion Ponce began harvesting grapes in the late 1980s. He says bosses on unionized farms “don’t mess with you.”Mark Abramson for The New York TimesWhile the impact of the law remains unclear, it has buoyed the spirits of some farmworkers.Asuncion Ponce started harvesting grapes along the rolling green hills of the Central Valley in the late 1980s. Through the decades, Mr. Ponce has worked on several farms with U.F.W. contracts. Bosses on those farms, he said, seemed aware that if they harassed or mistreated workers, the union would step in.“They don’t mess with you any more,” he said, “because they think there could be problems.”Even so, he has seen his financial security decline. He averaged $20,000 a year in the 1990s and 2000s, he said, but these days he brings in around $10,000 a year picking grapes and pruning pistachio trees. His eight-hour shifts are no longer supplemented by overtime, as growers have cut hours — partly as a result of the overtime bill U.F.W. leaders supported.Occasionally, Mr. Ponce said, he relied on third-party contractors, who growers sometimes employ, to find him available work. But he said he was optimistic that with the new legislation he would land a full-time job on a union farm.On a recent evening, the 66-year-old sipped coffee and decompressed after a shift at a farm outside of Fresno. His feet ached and his flannel shirt was stained with fertilizer, but he is happy that his job lets him spend all day outdoors — a passion born in his hometown in the Mexican state of Puebla, where he harvested corn and anise.He smiled softly under his white mustache as he spoke about the legacy of Mr. Chavez, which inspired him to join for several legs of the pilgrimage last summer.“I marched for many reasons,” he said in Spanish. “So we are not as harassed and mistreated as we are now in the fields, so benefits and better treatment come our way.”For Ms. Mota, joining the march helped awaken a new spirit of activism.Over the years, she said, she felt afraid to talk about unionizing at work, but now she tells any colleagues who will listen about the advantages she sees: the ability to negotiate a better salary, benefits and a respect for seniority.Her viewpoint was shaped in her early years as a farmworker. “Throughout the years I have realized that we are marginalized,” she said. “They don’t value us.”Once, she said, she watched as a farmer grabbed a knife used to harvest cantaloupe and put it to the cheek of another worker. He glared into the farmworker’s eyes, she said, and called the workers his slaves.“You feel humiliated,” she said, fighting back tears.She is convinced that having a strong union is the only answer. “We deserve a dignified life in this country,” she said.“Throughout the years I have realized that we are marginalized,” Veronica Mota said.Mark Abramson for The New York Times More

  • in

    California Voters to Decide on Regulating Fast-Food Industry

    Pre-empting a law signed last year, business groups forced a ballot initiative on state oversight of wages and working conditions.LOS ANGELES — A California law creating a council with broad authority to set wages and improve the working conditions of fast-food employees has been halted after restaurant and trade groups submitted enough signatures to place the issue before voters next year.Officials from the California secretary of state’s office announced late Tuesday that Save Local Restaurants, a broad coalition of small-business owners, large corporations, restaurateurs and franchisees, had turned in enough valid signatures to stop the law from taking effect.The group, which has raised millions of dollars to oppose the law, had to submit roughly 623,000 valid voter signatures by an early December deadline to place a question on the 2024 ballot asking California voters if the law should take effect.Legislation signed in September by Gov. Gavin Newsom, a Democrat, would set up a 10-member council of union representatives, employers and workers to oversee the fast-food industry’s labor practices in the state.The panel would have the authority to raise the minimum wage of fast-food workers to as much as $22 an hour — well above the statewide minimum of $15.50. In addition, the council would oversee health, safety and anti-discrimination regulations for nearly 550,000 fast-food workers statewide.More on CaliforniaA Wake of Tragedy: California is reeling after back-to-back mass shootings in Monterey Park and Half Moon Bay.Storms and Flooding: A barrage of powerful storms has surprised people in the state with an unrelenting period of extreme weather that has caused extensive damage across the state.New Laws: A new year doesn’t always usher in sweeping change, but in California, at least, it usually means a slate of new laws going into effect.Wildfires: California avoided a third year of catastrophic wildfires because of a combination of well-timed precipitation and favorable wind conditions — or “luck,” as experts put it.Opponents including the International Franchise Association and the National Restaurant Association argued that the measure, Assembly Bill 257, singled out their industry and would in turn burden businesses with higher labor costs that would be passed along to consumers in higher food prices.Matt Haller, president of the International Franchise Association, said the bill “was a solution in search of a problem that didn’t exist.”“Californians have spoken out to prevent this misguided policy from driving food prices higher and destroying local businesses and the jobs they create,” Mr. Haller said.Last year, the Center for Economic Forecasting and Development at the University of California, Riverside, released a study that estimated that employers would pass along one-third of labor compensation increases to consumers.But Mr. Newsom, in signing the measure, said it “gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry.”Mary Kay Henry, president of the Service Employees International Union, a staunch proponent of the measure, assailed fast-food corporations.“Instead of taking responsibility for ensuring workers who fuel their profits are paid a living wage and work in safe, healthy environments, corporations are continuing to drive a race to the bottom in the fast-food industry,” Ms. Henry said. “It’s morally wrong, and it’s bad business.”The effort to put the issue before voters follows a playbook used by large corporations to circumvent lawmakers in Sacramento. In 2019, state lawmakers passed a measure that required companies like Uber and Lyft to treat gig workers as employees. The companies opposed the measure and helped get a proposition on the 2020 ballot allowing them to treat drivers as independent contractors. The measure passed with nearly 60 percent of the vote.The fast-food law has been closely watched by the industry’s workers across California, including  Angelica Hernandez, 49, who has worked at McDonald’s restaurants in the Los Angeles area for 18 years.“We are undeterred, and we refuse to back down,” Ms. Hernandez said. “We can’t afford to wait to raise pay to keep up with the skyrocketing cost of living and provide for our families.”Alison Morantz, a professor at Stanford Law School who focuses on employment law, said what made the law unusual was “its holistic approach to addressing a wide range of problems in a traditionally nonunionized industry — not just low and stagnating wages, but also employment discrimination and poor safety practices.”“If it takes effect, it will be closely watched and could become a harbinger of similar efforts in other worker-friendly jurisdictions,” Ms. Morantz said. More