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Coronavirus has erased 600,000 clean energy jobs in two months — and that’s just the start

Renewable energy has been one of the few bright spots amid a global pandemic, as solar and wind power have surged across electricity grids worldwide. But the industry that supports renewable power is getting devastated: The U.S. economy lost nearly 600,000 clean energy jobs in March and April, setting what had been one of the country’s fastest-growing sources of employment on edge. All the job gains in renewables over the last five years have now been wiped out.

The numbers demolished earlier estimates. Jobs in energy efficiency, renewable energy, and electric vehicles tripled the losses originally reported for March, according to an analysis of Department of Labor data by BW Research. Their previous analysis had estimated that the industry would lose half a million jobs by the end of June; but that grim milestone arrived at the end of April instead.

“We saw those March figures and thought, ‘This is really quite severe and it’s going to get worse,’” said Gregory Wetstone, president and CEO of the American Council on Renewable Energy, one of the green energy groups which commissioned the report. “But I think what we didn’t realize is that March was just a signal of what was to come.”

With state governments locking down huge areas of the United States in an attempt to curb the coronavirus, the unemployment rate has jumped to almost 15 percent, the worst since the Great Depression. The Labor Department reported Thursday morning that claims for unemployment benefits have reached 36.5 million.

Clean energy workers are no exception. During the pandemic, workers are unable to enter homes and buildings to retrofit aging equipment to make it more efficient. Financing for clean energy projects has also dried up, as investors try to wait out the economic downturn. And even those projects that are up and running are struggling to buy panels and parts from shuttered factories around the world.

The clean energy industry employed over 3.4 million Americans last year, triple the number employed by the fossil fuel sector — and without federal aid, industry leaders warn that the situation could get much worse. BW Research now estimates that the industry could lose 850,000 jobs, a quarter of those employed in clean energy, by the end of June.

Wetstone said he hopes that the federal government will take a page out of the 2009 Obama-era Recovery Act, which helped renewable energy rebound from the Great Recession. That bill included a provision allowing wind and solar developers to continue to use federal tax credits.

Even in good times, renewable developers often don’t owe enough in tax to the federal government to make green energy tax credits worthwhile, so they partner with big investors that can offset their own own taxes. When the economy slumps, however, investors don’t owe as much tax — and so are unwilling to participate. The 2009 bill bypassed this problem by turning those tax credits into grants. Doing that now, Wetstone said, could get many people back to work sooner.

So far, however, there are few signs that the federal government will help out the struggling renewable industry. “We’ve seen the president be outspoken in defense of the oil and gas sector,” Wetstone said. “And we certainly hope that our champions are willing to likewise stand up and provide the help that we’re seeking in the clean power sector.”

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Coronavirus has erased 600,000 clean energy jobs in two months — and that’s just the start

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OPEC still just tryin’ to OPEC, but not doing so well at it.

A report on the employment practices of green groups finds that the sector, despite its socially progressive reputation, is still overwhelmingly the bastion of white men.

According to the study, released by Green 2.0, roughly 3 out of 10 people at environmental organizations are people of color, but at the senior staff level, the figure drops closer to 1 out of 10. And at all levels, from full-time employees to board members, men make up three-quarters or more of NGO staffs.

Click to embiggen.Green 2.0

The new report, titled “Beyond Diversity: A Roadmap to Building an Inclusive Organization,” relied on more than 85 interviews of executives and HR reps and recruiters at environmental organizations.

Representatives of NGOs and foundations largely agreed on the benefits of having a more diverse workforce, from the added perspectives in addressing environmental problems to a deeper focus on environmental justice to allowing the movement to engage a wider audience.

The most worrisome finding is that fewer than 40 percent of environmental groups even had diversity plans in place to ensure they’re more inclusive. According to the report, “Research shows that diversity plans increases the odds of black men in management positions significantly.”

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OPEC still just tryin’ to OPEC, but not doing so well at it.

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Ben Carson Just Made a Completely Bogus Argument for Not Raising the Minimum Wage

Mother Jones

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Flying in the face of what most economists believe, GOP presidential hopeful Ben Carson announced that raising the minimum wage would cost America jobs.

“Every time we raise the minimum wage, the number of jobless people increases,” the retired neurosurgeon said during the fourth televised GOP debate. “If you lower those wages, that comes down,”

Only one problem: this claim is seriously contested. More than 600 economists signed a letter to President Barack Obama and Congressional leaders last year urging the government to raise the federal minimum wage.

“The weight of evidence now shows that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers, even during times of weakness in the labor market,” the economists wrote.

There are some forecasts that support Carson’s view: the Congressional Budget Office last year said that raising the federal minimum wage to $10.10 would cost the US economy 500,000 jobs.

But many economists disagree with these estimates and so does the US Department of Labor. State-by-state hiring data released last year by the Department of Labor showed that the 13 states that raised their minimum wages at the start of the year gained jobs faster than their peers.

The federal minimum wage was last raised in 2009.

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Ben Carson Just Made a Completely Bogus Argument for Not Raising the Minimum Wage

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"Employees Are Bitter" as Whole Foods Chops Jobs and Wages

Mother Jones

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Whole Foods Market co-CEO and co-founder John Mackey has never hidden his disdain for labor unions. “Today most employees feel that unions are not necessary to represent them,” he told my colleague Josh Harkinson in 2013. That same year, Mackey echoed the sentiment in an interview with Yahoo Finance’s the Daily Ticker. “Why would they want to join a union? Whole Foods has been one of Fortune‘s 100 best companies to work for for the last 16 years. We’re not so much anti-union as beyond unions.”

On September 25, the natural-foods giant gave its workers reason to question their founder’s argument. Whole Foods announced it was eliminating 1,500 jobs—about 1.6 percent of its American workforce—”as part of its ongoing commitment to lower prices for its customers and invest in technology upgrades while improving its cost structure.” The focus on cost-cutting isn’t surprising—Whole Foods stock has lost 40 percent of its value since February, thanks to lower-than-expected earnings and an overcharging scandal in its New York City stores.

Sources inside the company told me that the layoffs targeted experienced full-time workers who had moved up the Whole Foods pay ladder. In one store in the chain’s South region, “all supervisors in all departments were demoted to getting paid $11 an hour from $13-16 per hour and were told they were no longer supervisors, but still had to fulfill all of the same duties, effective immediately,” according to an employee who works there.

I ran that claim past a spokesman at the company’s Austin headquarters. “We appreciate you taking the time to reach out and help us to set the record straight,” he responded, pointing to the press release quoted above. When I reminded him that my question was about wage cuts, not the announced job cuts, he declined to comment.

Another source, from one of Whole Foods’ regional offices, told me the corporate headquarters had ordered all 11 regional offices to reduce expenses. “They’ve all done it differently,” the source said. “In some regions, they’ve reduced the number of in-store buyers—people who order products for the shelves.”

I spoke with a buyer from the South region who learned on Saturday that, after more than 20 years with the company, his position had been eliminated. He and other laid-off colleagues received a letter listing their options: They could reapply for an open position or “leave Whole Foods immediately” with a severance package—which will be sweetened if they agree not to reapply for six months. If laid-off employees manage to snag a new position that pays less than the old one did, they are eligible for a temporary pay bump to match the old wage, but only for a limited time.

Those fortunate enough to get rehired at the same pay rate may be signing up for more work and responsibility. At his store, the laid-off buyer told me, ex-workers are now vying for buyer positions that used to be handled by two people—who “can barely get their work done as it is.”

My regional office source told me that the layoffs and downscaling of wages for experienced staffers is part of a deliberate shift toward part-time employees. Whole Foods has “always been an 80/20 company,” the source said, referring to it ratio of full- to part-time workers. Recently, a “mandate came down to go 70/30, and there are regions that are below that: 65/35 or 60/40.” Store managers are “incentivized to bring down that ratio,” the source added.

Employees working more than 20 hours per week are eligible for benefits once they’ve “successfully completed a probationary period of employment,” the Whole Foods website notes. But some key benefits are tied to hours worked. For example, employees get a “personal wellness account” to offset the “cost of deductibles and other qualified out-of-pocket health care expenses not covered by insurance,” but the amount is based on “service hours.”

And part-time employees tend not to stick around. My regional source said that annual turnover rates for part-timers at Whole Foods stores approach 80 percent in some regions. According to an internal document I obtained, the national annualized turnover rate for part-time Whole Foods team members was more than triple that of full-timers—66 percent versus about 18 percent—in the latest quarterly assessment. “Whole Foods has always been a high-touch, high-service model with dedicated, engaged, knowledgeable employeesâ&#128;&#139;,”â&#128;&#139; the source said. “How do you maintain that, having to constantly train a new batch of employees?”

Of course, Whole Foods operates in a hypercompetitive industry. Long a dominant player in natural foods, it now has to vie with Walmart, Trader Joe’s, and regional supermarket chains in the organic sector. Lower prices are key to staying competitive, and in order to maintain the same profit margins with lower prices, you have to cut your expenditures. Whole Foods’ labor costs, according to my regional source, are equal to about 20 percent of sales—twice the industry standard.

It’s not unusual for a publicly traded company to respond to a market swoon by pushing down wages and sending workers packing. But Whole Foods presents itself as a different kind of company. As part of its “core values,” Whole Foods claims to “support team member employee happiness and excellence.” Yet at a time when the company’s share price is floundering and its largest institutional shareholder is Wall Street behemoth Goldman Sachs—which owns nearly 6 percent of its stock—that value may be harder to uphold.

Workers join unions precisely to protect themselves from employers that see slashing labor costs as a way to please Wall Street. “There’s a fear of unions coming in, because employees are bitter,” the regional-office source said. “People talk about it in hushed tones.”

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"Employees Are Bitter" as Whole Foods Chops Jobs and Wages

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The Combined Black Workforces of Google, Facebook, and Twitter Could Fit on a Single Jumbo Jet

Mother Jones

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We already knew that Google, Facebook, and Twitter employed relatively few African Americans, but new details show that the gap is truly striking. All three companies have disclosed their full EEO1 reports, detailed accounts of their employees’ race and gender demographics that the law requires them to submit to the US Equal Employment Opportunity Commission. The reports show that out of a combined 41,000 Twitter, Facebook, and Google employees, only 758, or 1.8 percent, are black. To put this in perspective, all of those workers could fit onto a single Airbus A380. Have a look:

African Americans comprise 13 percent of the overall workforce, which means they are underrepresented at Google, Facebook, and Twitter by a factor of 7. Here’s a visual comparison of the black employees…

versus all other employees:

Race and gender gaps in tech hiring have been hot-button issues as of late. Since last May, when Rev. Jesse Jackson showed up at Google’s shareholder meeting, he has won some serious diversity concessions from major tech companies—but the pace of minority hiring remains slow. As the Guardian noted yesterday, Facebook hired 1,216 new people last year, and only 36 were black. Since last year, the percentage of black Google workers has not changed.

It should be easier to shift workplace demographics at smaller companies. Twitter, with fewer than 3,000 employees in 2014, has a huge black user base that is sometimes referred to as “Black Twitter.” Jackson wants the company to do more to move the needle. “I am very disappointed,” he told the Guardian. “We are becoming intolerant with these numbers. There’s a big gap between their talk and their implementation.”

Airplane image: Anthony Lui/Noun Project

Correction: An early version of this story misstated the number of black employees at Google and incorrectly suggested that Twitter had released its 2015 EEO1 report. Mother Jones regrets the errors.

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The Combined Black Workforces of Google, Facebook, and Twitter Could Fit on a Single Jumbo Jet

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Honduran President Decides That Going to an Event Called "Disrupting Democracy" Isn’t Such a Good Idea

Mother Jones

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On Monday, Honduran President Juan Orlando Hernández was expected to appear in San Francisco to talk about his efforts to cede a chunk of his impoverished Central American nation to an international group of investors who want to create an autonomous, self-governing, libertarian paradise. There was one problem, however: His talk was part of a speaker series called Disrupting Democracy, which may be a better venue for someone like Rand Paul than the beneficiary of a military coup who won office using funds allegedly embezzled from the national social security system.

The brief, quixotic history of DIY micronations

Hernández and his deputies skipped Disrupting Democracy due to “civil unrest,” according the event’s organizers. On Sunday, 8,000 protesters had marched through the capital city of Tegucigalpa calling for his ouster.

“Before we begin, I would like to apologize for some confused messaging,” said panelist Randy Hencken, who directs the Seasteading Institute, which promotes the creation of floating technoutopian nation-states and cosponsored the event. “Here in Silicon Valley, when we want to improve something, we say ‘disrupt,'” Hencken continued. “Nobody in Honduras approved or even knew about that whimsical title, which, when translated from English into Spanish, could easily be construed in a negative and unintended light.”

At least a dozen anti-Hernández protesters showed up oustide the event, which was held at the South of Market headquarters of Lincoln Labs, a tech incubator cofounded by a former Mitt Romney campaign staffer.

The first Disrupting Democracy event, held in May, featured Paul discussing the growth of “a new generation of voter engagement.” Any subject that appeals to both libertarians and techies appears to interest Lincoln Labs, which was founded in 2013 to serve “liberty advocates living in Silicon Valley”—”a forgotten community that felt ostracized with no home.” Other Lincoln Labs events include its Reboot conferences and hackathons focusing on the technology of political campaigning.

Everyone at Monday’s event seemed to agree that the Honduran scheme, known as Zones for Employment and Economic Development, or ZEDEs, now seemed imperiled—a discouraging turn, given Hernández’s close cooperation with antitax crusader Grover Norquist and high-ranking representatives of the libertarian Cato and Hayek Institutes.

Yet the seasteaders were undeterred, even emboldened. If Honduras didn’t want to create a Hong-Kong style city on its coast, maybe it would host a floating city in its territorial waters. “That gets rid of complaints of ceding over large portions of land,” noted Seasteading Institute member Mike Doty, who had a long gray beard and a pirate-skull-patterned bandanna. “On the Pacific side, there’s a large bay there…They’ve done the engineering studies, the feasibility studies. We’re pretty far along.”

One thing that can never be disrupted, it seems, is the vision of a technolibertarian.

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Honduran President Decides That Going to an Event Called "Disrupting Democracy" Isn’t Such a Good Idea

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The Great Wage Slowdown of the 21st Century Is About a Lot More Than Just Wages

Mother Jones

David Leonhardt writes about why the economy looks so bad even though unemployment has fallen below 6 percent:

American workers have been receiving meager pay increases for so long now that it’s reasonable to talk in sweeping terms about the trend. It is the great wage slowdown of the 21st century.

Yes indeed. This started around the year 2000 and hasn’t changed since. But as I’ve written before, that’s not all that changed around the year 2000. Here’s a more comprehensive list:

  1. Median income growth slowed in the mid-70s, but it stalled almost completely around 2000 and hasn’t recovered since.
  2. Real-world investment opportunities began stagnating around 2000.
  3. Labor markets slackened permanently starting around 2000.
  4. The employment-population ratio among women plateaued around 2000 and continued its long-term decline among men.
  5. The labor share of income in the nonfinancial sector dropped steeply starting in 2000 and never recovered.
  6. The number of jobs created by new businesses peaked around 2000 and has been falling ever since.
  7. State and local government output suddenly stagnated around 2000.
  8. Globally, the energy intensity of GDP stopped growing around 2000, which means world economic growth became limited by energy growth.
  9. Household debt inflected upward in 2000, and kept growing until the Great Recession put a stop to it.

I call this the Inflection Point of 2000, and it seems like too many things, all happening at about the same time, to be mere coincidence. In my piece last year about our robotic future, I suggested that much of it might be the barely visible early signs of a more automated economy, and I still suspect that may be part of what’s going on. But I don’t know for sure, and the evidence on this score is distinctly fuzzy.

And yet. It sure feels like something changed right around 2000. But what?

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The Great Wage Slowdown of the 21st Century Is About a Lot More Than Just Wages

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This Is the Democratic Plan to Reverse the Hobby Lobby Decision

Mother Jones

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On Monday, Senate Majority Leader Harry Reid promised “to do something” about the Supreme Court’s recent Hobby Lobby decision. Now two members of his caucus say they are preparing a bill that would reverse some of the controversial aspects of last week’s decision.

Take it away, TPM:

The legislation will be sponsored by Sens. Patty Murray (D-WA) and Mark Udall (D-CO). According to a summary reviewed by TPM, it prohibits employers from refusing to provide health services, including contraception, to their employees if required by federal law. It clarifies that the Religious Freedom Restoration Act, the basis for the Supreme Court’s ruling against the mandate, and all other federal laws don’t permit businesses to opt out of the Obamacare requirement.

This bill will restore the original legal guarantee that women have access to contraceptive coverage through their employment-based insurance plans and will protect coverage of other health services from employer objections as well, according to the summary.

This is all well and good, but unfortunately this bill will never survive a cloture vote in the Senate; even if it did, it would be dead on arrival in the House of Representatives. The only way that Hobby Lobby stands even a chance of being overturned legislatively is if John Boehner is forced to hand over the Speaker’s gavel to a Democrat. That’s probably something someone at the DCCC should remind people of as we head into the midterms.

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This Is the Democratic Plan to Reverse the Hobby Lobby Decision

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We Already Have a Lower Minimum Wage for Teenagers

Mother Jones

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Responding to yesterday’s set of posts about the effect of the minimum wage on teen employment, Matt Yglesias is puzzled. Do we even want higher teen employment? It doesn’t really seem like it:

After all, policymakers from both parties are pushing longer school days and shorter summer vacations. We’ve done a lot to encourage more people to go to college. We seem to be pushing more extracurricular activities on high schoolers….Now perhaps this is a huge mistake. But if it’s a huge mistake, it’s much bigger than the minimum wage. And actually the minimum-wage angle could be patched pretty quickly. Jordan Weissmann recently wrote about Australia where the minimum wage is higher than in the United States, but there’s a special low teenage minimum wage.

That reminds me. A few days ago I ran across the following footnote on a Labor Department web page:

5A subminimum wage — $4.25 an hour — is established for employees under 20 years of age during their first 90 consecutive calendar days of employment with an employer.

Am I the only person in America who didn’t know this? Sure, it’s only for 90 days, but it still makes a difference. Summer jobs could certainly all be offered to teens at $4.25. And it significantly reduces the risk of hiring a teen, since they don’t cost very much during the period when you’re still deciding whether they’re any good.

In any case, this went into effect in 1997 and it hasn’t changed since. Surely this is germane to any discussion of the minimum wage and teen employment?

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We Already Have a Lower Minimum Wage for Teenagers

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Elizabeth Warren Introduces Bill to Prevent Employers From Discriminating Against Poor People

Mother Jones

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On Tuesday, Sen. Elizabeth Warren (D-Mass.) and six of her colleagues in the Senate introduced a bill that would prevent employers from using credit checks in the hiring process, a practice that disproportionately hurts poor people.

Over the past few decades, credit reporting bureaus have begun selling their services not just to lenders, but to a wide range of employers. Forty-seven percent of employers check applicants’ credit history as an indicator of their employability, according to a 2012 survey by the Society for Human Resource Management. But research shows that a person’s credit score has nothing to do with her likelihood of succeeding in the workplace. The Equal Employment for All Act—co-sponsored by Sens. Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), Patrick Leahy (D-Vt.), Edward J. Markey (D-Mass.), Jeanne Shaheen (D-N.H.), and Sheldon Whitehouse (D-R.I.)—would prohibit the judging of applicants by this metric.

“A bad credit rating is far more often the result of unexpected medical costs, unemployment, economic downturns, or other bad breaks than it is a reflection on an individual’s character or abilities,” Warren said. “Families have not fully recovered from the 2008 financial crisis, and too many Americans are still searching for jobs. This is about basic fairness—let people compete on the merits, not on whether they already have enough money to pay all their bills.”

The bill, which is backed by over 40 community, financial reform, labor and civil rights organizations, would be a boon for low-wage workers, minority communities, and women. Credit checks used in the hiring process disproportionately disqualify people of color. Divorce tends to hit women’s finances harder than men’s, and women are also more likely to receive subprime loans than men.

Chi Chi Wu, a staff lawyer at the National Consumer Law Center in Boston, told the New York Times in May that most of the people who contacted her group complaining that they’d been denied a job because of poor credit were low-wage workers applying to big retail chains. “Someone loses their job,” she said, “so they can’t pay their bills—and now they can’t get a job because they couldn’t pay their bills because they lost a job? It’s this Catch-22 that makes no sense.”

There is ample support for the senators’ bill. In 2011, Rep. Steve Cohen (D-Tenn.) introduced a similar bill in the House. Nine states have adopted legislation that curbs the use of credit reports to in the hiring process.

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Elizabeth Warren Introduces Bill to Prevent Employers From Discriminating Against Poor People

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