Dodd-Frank Act requires Office of Minority and Women Inclusion for covered agencies
August 24th, 2010
Tucked within the broad package of financial industry reforms contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R. 4173 / Public Law 111-203) is a provision that mandates that each covered governmental agency establish an Office of Minority and Women Inclusion (OMWI) to “be responsible for all agency matters relating to diversity in management, employment and business activities.” Section 342 (contained within Subtitle D) of the Act requires each OMWI to monitor the diversity efforts of the agencies, the regulated entities and agency contractors. In cases where an OMWI director determines an agency contractor has failed to make a good-faith effort to include minorities and women in their workforce, the agency head may refer the matter the OFCCP or take other appropriate action, including termination of the applicable contract.
Contracts. The OMWI directors must develop and implement standards and procedures to ensure, to the maximum extent possible, the fair inclusion and utilization of minorities, women, and minority-owned and women-owned businesses in all business and activities of the agency at all levels, including in procurement, insurance, and all types of contracts (Section 342(c)(1)).
The procedures established by each agency for review and evaluation of contract proposals and for hiring service providers must include, to the extent legally permissible, a component that gives consideration to the diversity of the applicant. These procedures must include a written statement that a contractor “shall ensure, to the maximum extent possible, the fair inclusion of women and minorities in the workforce of the contractor and, as applicable, subcontractors” (Section 342(c)(2)).
The statute requires each agency to establish a procedure for its OMWI director to make a determination whether an agency contractor, and, as applicable, a subcontractor has failed to make a good-faith effort to include minorities and women in their workforce. If an OMWI director makes such a determination, the director must make a recommendation to the agency head that the contract be terminated. Upon receipt of such a recommendation, the agency head may: (a) terminate the contract; (b) make a referral to the OFCCP; or (c) take other appropriate action (Section 342(c)(3)).
Duties within the agency. Within their respective agencies, Section 342(b)(2) requires the OMWI directors to develop standards for: (a) equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of the agency; (b) increased participation of minority-owned and women-owned businesses in the programs and contracts of the agency, including standards for coordinating technical assistance to such businesses; and (c) assessing the diversity policies and practices of entities regulated by the agency.
In addition, each OMWI director is charged with advising his/her respective agency head on the impact of the policies and regulations of the agency on minority-owned and women-owned businesses (Section 342(b)(3)).
Reports. Each OMWI must submit to Congress an annual report regarding the actions taken by the agency and the OMWI pursuant to Section 342 including: (1) a statement of the total amounts paid by the agency to contractors since the previous report; (2) the percentage of these amounts that were paid to covered contractors; (3) the successes achieved and challenges faced by the agency in operating minority and women outreach programs; (4) the challenges the agency may face in hiring qualified minority and women employees and contracting with qualified minority-owned and women-owned businesses; and (5) any other information, findings, conclusions, and recommendations for legislative or agency action, as the OMWI director determines appropriate (Section 342(e)).
Other diversity requirements. Each agency is also required to take steps to seek diversity, to the extent legally permissible, in the workforce of the agency at all levels of the agency, including: (1) recruiting at historically black colleges and universities, Hispanic-serving institutions, women’s colleges, and colleges that typically serve majority-minority populations; (2) sponsoring and recruiting at job fairs in urban communities; (3) placing employment advertisements in newspapers and magazines oriented toward minorities and women; (4) partnering with organizations that are focused on developing opportunities for minorities and women to place talented young minorities and women in industry internships, summer employment, and full-time positions; (5) where feasible, partnering with inner-city high schools, girls’ high schools, and high schools with majority minority populations to establish or enhance financial literacy programs and provide mentoring; and (6) any other mass media communications that their respective OMWIs determines are necessary (Section 342(f)).
Duties not included. However, the OMWIs’ responsibilities do not include enforcement of statutes, regulations, or executive orders pertaining to civil rights, except each OMWI Director shall coordinate with the agency administrator, or the designee of the agency administrator, regarding the design and implementation of any remedies resulting from violations of such statutes, regulations, or executive orders (Section 342(a)(3)).
Agencies that are required to establish OMWIs. Covered agencies under Section 342 include: (1) the Departmental Offices of the Department of the Treasury; (2) the Federal Deposit Insurance Corporation; (3) the Federal Housing Finance Agency; (4) each of the Federal Reserve banks; (5) the Federal Reserve Board; (6) the National Credit Union Administration; (7) the Office of the Comptroller of the Currency; (8) the Securities and Exchange Commission; and (9) the Bureau of Consumer Financial Protection (Section 342(g)).
Senate passes legislation to ensure Internet and technology access for people with disabilities
August 19th, 2010
The U.S. Senate has unanimously passed legislation as part of its effort to improve Internet and technology access for people with disabilities. Sponsored by Arkansas Senator Mark Pryor, the Equal Access to 21st Century Communications Act (S. 3304) will amend the Communications Act of 1934 to ensure that companies make new technologies accessible for persons with disabilities. The legislation passed within days of the 20th anniversary of the Americans with Disabilities Act.
“The Internet and other emerging communication equipment are no longer a luxury. They are an essential gateway to learn, interact and conduct business,” said Pryor. “This legislation will ensure all Americans, including those with disabilities, are able to fully participate in today’s online world. I am pleased that the Senate came together with one voice to pass this important legislation.”
The legislation’s passing was met with enthusiasm from disability rights groups including the American Foundation of the Blind (AFB). “We will now be looking to the House to take up S. 3304 and ensure that this landmark legislation is sent to the President’s desk,” said Paul Schroeder, Vice President of AFB Programs & Policy. “Twenty years ago now when the ADA was signed into law, no one could have predicted the new technologies—smart phones to the Internet—that now shape our daily lives and work routines. Once signed into law, this legislation will ensure that the 25 million Americans with vision loss and the millions more with other disabilities can fully participate in the digital era.”
According to Pryor, the Equal Access to 21st Century Communications Act will:
- Create a one-stop shop for information on online products and services available to blind and deaf individuals;
- Close existing gaps in accessibility by requiring technology like smart devices, including an iPhone or Blackberry, to be hearing aid compatible;
- Require that programming shown on television also be closed captioned and video described when it is posted on the Internet. ex., nightly news, Razorback games, Lost;
- Require video programming devices, such mp3 players and DVRs, to be capable of closed captioning, video description and emergency alerts; and
- Authorize federal support for specialized equipment for deaf or blind individuals.
The Act, cosponsored by Senators John Kerry (D-Mass), John Ensign (R-Nev) and Kay Bailey Hutchison (R-Tex), was introduced on May 4, 2010 and passed the Senate with an amendment by unanimous consent on August 5.
Only slight majority of Americans have positive views on labor unions, according to recent poll
August 17th, 2010
In the latest perennial poll of union sentiment, only 52 percent of Americans say that they approve of labor unions. Gallup’s latest poll notes that the percentage is the second lowest in the organization’s 70-year polling history on the issue, ahead only of last year’s 48 percent. The highest approval rating came in 1953 and 1957, when 75 percent of Americans voiced support for organized labor. Not surprisingly, the breakdown comes on largely political lines, with 71 percent of Democrats supporting unions, as opposed to 34 percent of Republicans and 49 percent of independents. Regardless of their preference, 46 percent of those polled believe that unions will weaken in the future, as compared to the 25 percent who believe unions will grow stronger. Gallup speculates that the economic downturn may be responsible for labor’s sagging ratings, citing its finding of a mild drop in union approval during the late 1970s and early 1980s as the US economy struggled through recession and stagflation. Gallup also speculates that the negative views may stem from the view that unions are likely to benefit or are benefitting from the policies of the Obama administration.
A look back: Hartmarx celebrates its one-year anniversary
August 12th, 2010
Hartmarx, the Chicago area men’s clothier that outfitted President Obama on election night, as well as provided him with his inaugural suit, top coat and tuxedo, this week celebrated its one-year anniversary of a very close call with liquidation. Hartmarx, now known as HMX Group, was sold last June to Britain-based Emerisque Brands and SKNL North America BV.
In spring 2009, the 122-year-old company was forced into bankruptcy protection after citing lower borrowing capacity under Wells Fargo, a senior credit facility. Hartmarx had attracted three potential buyers, two of which, it was reported, intended to keep the company intact. Rumors flew, however, that Wells Fargo, which was a recipient of federal bailout funds, was leaning towards a third buyer that favored liquidation. This threat, however, was enough to galvanize workers, supporters, union leaders and federal lawmakers to put a little pressure on Wells Fargo. Two Congressional members at the forefront of this fight, Rep. Phil Hare (D-Ill), who spent 13 years in the employ of Hartmarx, and Rep. Jan Schakowsky (D-Ill), whose great-aunt also worked at the company, urged the bank to keep the company afloat.
During a few days that month, rallies featured labor leaders and workers, along with Rep. Hare and Illinois Treasurer Alex Giannoulias, who threatened to cut off the State of Illinois’ $8 billion in business with Wells Fargo if the company proceeded with liquidation plans. The Hartmarx workforce, in a page taken from that of the Chicago-based Republic Windows and Doors, whose employees staged a successful sit-in to secure the 60 days’ severance and unused vacation days they were lawfully owed, voted to occupy the plant if liquidation were the outcome.
Finally in late June, parties returned to the courtroom for the bid hearing and, after resolving concerns that had arisen, the sale to Emerisque was approved.
Fast forward to this year: in light of continual depressing employment figures, it’s a happy day when 600 employees can take time out to celebrate their jobs being saved.
Games
August 10th, 2010
No one disputes that the United States is currently suffering through an economic crisis, the likes of which has not been seen since the Great Depression. And yet, despite this nearly unparalleled period of economic devastation, a dispiriting number of groups appear intent on inaction. This is not a case of Nero fiddling while Rome burns, but rather a case of Nero sleeping while the empire ignites.
The first example is the recent dustup over unemployment benefits. Originally intended to be part of an overall jobs bill, a second economic stimulus package if you will, the recent passage of an unemployment benefit extension was the only piece that could pierce a filibuster led by Senate Republicans and supported by Democrat Ben Nelson (D-NE). While the parties bickered over the content of the bill, 2.3 million Americans, many of whom lost their jobs due to the economic downturn, went without needed financial support, largely because certain politicians prioritized deficit reduction over assistance to workers in need. To be sure, the rising deficits threaten the long-term prosperity of the country, but 2.3 million people who can’t spend anything threatens the immediate future of the fragile economic recovery. A measure that could have protected 800,000 jobs was sidelined by a battle over how to pay. Or, more likely, by an argument over political posturing.
On Friday, August 6th, the news came that a bill intended to assist small businesses using loans and tax credits remained stuck in the Senate, as that august body takes its annual August vacation, and won’t likely be addressed again until September. The bill would create a $30 billion lending fund, run through the US Treasury, which would provide cheap credit to the community banks that do most of the lending to small businesses. The bill would also give $12 billion in tax relief, spread across 10 years, to small businesses and would provide $1.5 billion in grants to the states for their state lending programs. This kind of bill is hugely important, as it is usually the community banks that provide the funds that allow small businesses to hire. The Obama administration contends that small businesses create two out of three private sector jobs. Despite the obvious importance of such a bill, inaction was once again the name of the game.
And, finally, the National Right to Work Foundation has asked US Attorney General Eric Holder to launch an investigation into whether NLRB Member Craig Becker’s participation in a decision involving a local of his former employer, the SEIU International, violated the President’s Ethics Pledge. This request comes less than a month after the NLRB’s Inspector General determined that Becker’s involvement did no such thing. The NRWH has every right to monitor Becker’s activities on the Board, given his close ties to unions, but this move smacks of overkill. It is humbly suggested here that the NRWH drop its pursuit of Becker, allow him to do his job, and continue to act as a much-needed watchdog on overzealous unions and their advocates.
