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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>Update, 12:40 p.m., Tuesday, Feb. 21:\u003c/strong>\u003c/p>\n\u003cp>Work is set to resume Tuesday on a high-rise in San Francisco's South of Market neighborhood that was shut down for several days due to an accident that prompted evacuations at more than a dozen nearby buildings.\u003c/p>\n\u003cp>\"The owner/contractors will be resuming work immediately on this project,\" said Department of Building Inspection spokesman Bill Strawn after an agency inspector and engineer visited the Tehama Street site Tuesday morning.\u003c/p>\n\u003cp>The agency lifted its restrictions after work was done to shore up a platform on the 35th floor of the project. That job has been completed, \u003ca href=\"https://www.scribd.com/document/339949086/Letter-Allowing-Work-to-Resume-at-41-Tehama-St-in-San-Francisco\" target=\"_blank\">according to a letter\u003c/a> sent from an engineer hired to assess the site to one of the project's subcontractors, Pacific Structures.\u003c/p>\n\u003cp>\u003cstrong>Original Post, Thursday, Feb. 16:\u003c/strong>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Pacific Structures, a San Francisco-based company that's now under investigation by state workplace safety regulators in connection with a high-rise accident in the South of Market area on Wednesday, was one of the firms linked to a major construction fire in the city over two years ago.\u003c/p>\n\u003cp>On Thursday, city building inspectors barred construction work at the Tehama Street skyscraper site for 48 hours and California's Division of Occupational Safety and Health (Cal/OSHA) began its probe of the incident.\u003c/p>\n\u003cp>Cal/OSHA inspectors gained access to the building hours after crews were able to stabilize a platform on the 35th floor that began to tip the day before, a scare that led to the evacuation of more than a dozen nearby buildings.\u003c/p>\n\u003cp>A hydraulic jack, part of a device described by building inspectors as a climbing-form machine, was supporting the platform but failed, leading to concerns that a concrete slab it was holding up would fall to the street.\u003c/p>\n\u003cp>\"The platform tilted when the hydraulic jack failed,\" said Cal/OSHA spokeswoman Erika Monterroza.\u003c/p>\n\u003cp>\"It tipped over, the machine then ran into the wall and caused this concrete form to angle out,\" said Bill Strawn, a spokesman for the Department of Building Inspection, in an interview.\u003c/p>\n\u003cp>The climbing-form machine acts like a massive elevator, allowing crews to lay out concrete floor by floor. The large device was being dismantled Thursday, Strawn said.\u003c/p>\n\u003cp>Building inspectors have issued a notice of violation on the worksite, requiring that crews make the area safe and that a licensed engineer issue reports to the city on the cause of the failure and attesting to a new setup's structural integrity, he said.\u003c/p>\n\u003cp>The main contractor for the project is Lendlease, an international construction firm based in Sydney, Australia.\u003c/p>\n\u003cp>Pacific Structures, a subsidiary of the firm Build Group, is a subcontractor on the project dealing in concrete.\u003c/p>\n\u003cp>Pacific Structures and Build Group were involved in the renovation of the former Renoir Hotel at 45 McAllister St. when it was badly damaged in a \u003ca href=\"https://ww2.kqed.org/news/2014/08/05/cal-osha-probes-san-francisco-mid-market-fire-eight-workers-injured/\">three-alarm fire\u003c/a> on Aug. 4, 2014.\u003c/p>\n\u003cp>The fire injured eight workers, led to an investigation by Cal/OSHA and eventually prompted the San Francisco Fire Department to issue \u003ca href=\"https://ww2.kqed.org/news/2014/09/11/sf-fire-dept-construction-firm-removed-sprinkler-systems-contrary-to-directive/\">two safety citations against Build Group\u003c/a>.\u003c/p>\n\u003cp>Fire officials said at the time that the company removed sprinkler systems at the McAllister Street site and another one on Buchanan Street.\u003c/p>\n\u003cp>Build Group initially appealed the two $1,000 penalties, but in May 2015 it quietly withdrew its objection.\u003c/p>\n\u003cp>The Renoir Hotel blaze came in the middle of the city's building boom and months after a much larger \u003ca href=\"https://ww2.kqed.org/news/2015/03/11/san-francisco-mission-bay-fire-lessons-learned/\">construction site fire in the Mission Bay\u003c/a> neighborhood that also led to citations against a subcontractor.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>A spokeswoman for Build Group and Pacific Structures has yet to comment on Thursday's incident.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Trump's Sons Head to Dubai as Business Interests Continue to Expand Overseas",
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"content": "\u003cp>Although President Trump has stepped back from daily management of the Trump Organization, his businesses continue to expand, often in foreign countries.\u003c/p>\n\u003cp>On Saturday, Trump's sons, Eric and Donald Jr., will be in the United Arab Emirates, helping cut the ribbon for the new Trump International Golf Club, according to Kim Benza, a spokesperson for the Trump Organization.\u003c/p>\n\u003cp>The 18-hole golf course, in the works since 2013, is part of a larger project that will include 100 luxury villas in the desert just outside Dubai. The \u003ca href=\"http://www.trumpgolfdubai.com\">website touts\u003c/a> \"a world-class golf course, exceeding all expectations. And the clubhouse contains \"enough gold to suit even the most exacting Dubai resident,\" \u003ca href=\"http://gulfnews.com/leisure/travel/donald-trump-s-dubai-golf-club-7-things-to-know-1.1978626\">says the Gulf News\u003c/a>, which toured the facility.\u003c/p>\n\u003cp>[contextly_sidebar id=\"enIPFh3lBgP2ziiV7GvJiUtIChhprguC\"]\u003c/p>\n\u003cp>The golf course is one of two Trump resort projects in Dubai. Behind both is the Dubai-based company Damac Properties, run by \u003ca href=\"http://www.npr.org/sections/parallels/2017/01/14/509721548/trump-says-he-wont-build-a-2-billion-golf-course-in-dubai-he-has-2-already\">billionaire Hussain Sajwani\u003c/a>, a Trump business partner for almost a decade.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In the week before his inauguration, Trump said that he turned down a $2 billion deal by Damac Properties to develop yet another golf course in Dubai because he didn't \"want to take advantage of something.\"\u003c/p>\n\u003cp>Trump has been criticized for not divesting his family business. While he has moved his holdings into a revocable trust, he has not given up ownership and the trustees are his sons.\u003c/p>\n\u003cp>Eric and Donald Jr. are overseeing resorts still underway in places such as the Philippines and Indonesia. Trump Hotels also is planning \u003ca href=\"http://www.npr.org/sections/thetwo-way/2017/01/25/511655106/as-trump-hotels-expand-trump-club-also-raises-fees-and-eyebrows\">a major expansion \u003c/a>of luxury properties in the United States, as well as opening up a line of moderately priced hotels called Scion.\u003c/p>\n\u003cp>Those expansions not only raise ethical questions about conflicts between Trump's role as president and as business owner but also are generating concerns about costs to the U.S. taxpayers. The Trump sons get Secret Service protection, and their foreign business \u003ca href=\"https://www.washingtonpost.com/business/economy/trump-familys-elaborate-lifestyle-a-logistical-nightmare--at-taxpayer-expense/2017/02/16/763cce8e-f2ce-11e6-a9b0-ecee7ce475fc_story.html?hpid=hp_rhp-top-table-main_trumptravel-530pm%3Ahomepage%2Fstory&utm_term=.2e746f7e5bd8\">trips can be enormously expensive\u003c/a> for their protective service, according to the Washington Post.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Copyright 2017 NPR. To see more, visit \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR.org\u003c/a>.\u003c/p>\n\n",
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"excerpt": "The president's sons will cut the ribbon on a new Trump golf course in Dubai this weekend. The Trump family stands to profit, while U.S. taxpayers pick up the tab for Secret Service protection.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Although President Trump has stepped back from daily management of the Trump Organization, his businesses continue to expand, often in foreign countries.\u003c/p>\n\u003cp>On Saturday, Trump's sons, Eric and Donald Jr., will be in the United Arab Emirates, helping cut the ribbon for the new Trump International Golf Club, according to Kim Benza, a spokesperson for the Trump Organization.\u003c/p>\n\u003cp>The 18-hole golf course, in the works since 2013, is part of a larger project that will include 100 luxury villas in the desert just outside Dubai. The \u003ca href=\"http://www.trumpgolfdubai.com\">website touts\u003c/a> \"a world-class golf course, exceeding all expectations. And the clubhouse contains \"enough gold to suit even the most exacting Dubai resident,\" \u003ca href=\"http://gulfnews.com/leisure/travel/donald-trump-s-dubai-golf-club-7-things-to-know-1.1978626\">says the Gulf News\u003c/a>, which toured the facility.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>The golf course is one of two Trump resort projects in Dubai. Behind both is the Dubai-based company Damac Properties, run by \u003ca href=\"http://www.npr.org/sections/parallels/2017/01/14/509721548/trump-says-he-wont-build-a-2-billion-golf-course-in-dubai-he-has-2-already\">billionaire Hussain Sajwani\u003c/a>, a Trump business partner for almost a decade.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In the week before his inauguration, Trump said that he turned down a $2 billion deal by Damac Properties to develop yet another golf course in Dubai because he didn't \"want to take advantage of something.\"\u003c/p>\n\u003cp>Trump has been criticized for not divesting his family business. While he has moved his holdings into a revocable trust, he has not given up ownership and the trustees are his sons.\u003c/p>\n\u003cp>Eric and Donald Jr. are overseeing resorts still underway in places such as the Philippines and Indonesia. Trump Hotels also is planning \u003ca href=\"http://www.npr.org/sections/thetwo-way/2017/01/25/511655106/as-trump-hotels-expand-trump-club-also-raises-fees-and-eyebrows\">a major expansion \u003c/a>of luxury properties in the United States, as well as opening up a line of moderately priced hotels called Scion.\u003c/p>\n\u003cp>Those expansions not only raise ethical questions about conflicts between Trump's role as president and as business owner but also are generating concerns about costs to the U.S. taxpayers. The Trump sons get Secret Service protection, and their foreign business \u003ca href=\"https://www.washingtonpost.com/business/economy/trump-familys-elaborate-lifestyle-a-logistical-nightmare--at-taxpayer-expense/2017/02/16/763cce8e-f2ce-11e6-a9b0-ecee7ce475fc_story.html?hpid=hp_rhp-top-table-main_trumptravel-530pm%3Ahomepage%2Fstory&utm_term=.2e746f7e5bd8\">trips can be enormously expensive\u003c/a> for their protective service, according to the Washington Post.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Copyright 2017 NPR. To see more, visit \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR.org\u003c/a>.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Why Ditching NAFTA Could Hurt America's Farmers More Than Mexico's",
"title": "Why Ditching NAFTA Could Hurt America's Farmers More Than Mexico's",
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"content": "\u003cp>\u003cstrong>Listen to the story on All Things Considered:\u003c/strong>\u003cbr>\nhttps://ondemand.npr.org/anon.npr-mp3/npr/atc/2017/02/20170216_atc_why_ditching_nafta_could_hurt_americas_farmers_more_than_mexicos.mp3\u003c/p>\n\u003cp>Garland Reiter is one of the people behind the rise in imported food from Mexico.\u003c/p>\n\u003cp>His family has been growing strawberries in California for generations and selling them under the name \u003ca href=\"https://www.driscolls.com/about/heritage\">Driscoll's\u003c/a>. Today, it's the biggest berry producer in the world.\u003c/p>\n\u003cp>In the early 1990s, the Reiter family started growing strawberries and raspberries in Mexico, in addition to California. It found regions in Mexico where the climate allowed them to grow the fruit — especially raspberries — during seasons of the year when it hadn't been feasible back home. \"Our move really was for year-round product, and quality,\" says Reiter, who is executive chairman of \u003ca href=\"http://www.berry.net/\">Reiter Associated Cos\u003c/a>.\u003c/p>\n\u003cp>The North American Free Trade Agreement went into effect at that same time, in 1994. But that's coincidence, Reiter says; NAFTA had very little to do with the move into Mexico. \"To tell you the truth, we paid minimal attention to that,\" he says.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Many U.S. fruit and vegetable growers have made the same move over the past two decades. They've all done it to expand their growing season, and also to cut costs. Farmworkers in Mexico get paid very little, compared with workers in the U.S.\u003c/p>\n\u003cp>Reiter says that when he got to Mexico and met his Mexican partners, he discovered another reason to locate there. \"They're farmers. They want to be farmers. That \u003cem>is\u003c/em> their industry,\" he says. There's excitement about new fruit varieties, and new methods of growing crops.\u003c/p>\n\u003cp>Since 1992, raspberry exports from Mexico to the U.S. have gone from zero to $500 million each year. The increase in strawberry exports is similar. Total Mexican shipments of fruits and vegetables to the U.S. have increased by nine times over the last 25 years, to $12 billion a year. People in the industry say most of that increase is a result of U.S. companies setting up production in Mexico.\u003c/p>\n\u003cp>President Trump's criticism of trade with Mexico has unsettled the industry. He has talked about possibly taxing imports from Mexico or renegotiating NAFTA. Mexican officials have threatened to retaliate against American exports.\u003c/p>\n\u003cp>But Reiter says such moves would just force Americans to pay a little more for Mexican fruit. It wouldn't bring production back to the U.S.\u003c/p>\n\u003cp>\"If you look at the magnitude of the investment in Mexico, there's no way that's coming back to California,\" he says. \"There's absolutely no way.\"\u003c/p>\n\u003cp>He'll keep growing in Mexico, in part because it would be hard for Americans to replace Mexican production with fresh berries from somewhere else.\u003c/p>\n\u003cp>Yet the situation on the other side of the trade equation, for U.S exports to Mexico, is considerably different.\u003c/p>\n\u003cp>Those exports also have grown dramatically, but a lot of them are commodities that Mexico could buy from other places, such as corn, soybeans and dairy products.\u003c/p>\n\u003cp>\"Mexico is the No. 1 buyer of U.S. dairy products in the world,\" says John Wilson, senior vice president of \u003ca href=\"http://www.dfamilk.com/\">Dairy Farmers of America\u003c/a>, a cooperative with 14,000 dairy farmer members.\u003c/p>\n\u003cp>American dairy farmers have come to rely on exports in recent years. About 15 percent of all milk is processed into products for export. Wilson's cooperative, for instance, has a plant in Portales, N.M., that receives milk from big dairy farmers in the eastern part of that state and dries it into powder. \"About 38 million pounds of [milk] powder moved from the plant into Mexico last year,\" Wilson says. In total, the U.S. exports about $500 million worth of milk powder to Mexico annually. That's up more than 10 times from 20 years ago.\u003c/p>\n\u003cp>The U.S. also exports billions of dollars' worth of corn, soybeans and pork. And NAFTA is really important for most of those exports. It allows products to enter Mexico duty-free and makes American commodities just slightly cheaper than the competition, such as milk powder from New Zealand.\u003c/p>\n\u003cp>\"Pennies do matter in the milk business,\" Wilson says. \"It's a very competitive business worldwide, and the presence or absence of a tariff can make or break a deal.\"\u003c/p>\n\u003cp>Wilson says he doesn't know exactly how much it would cost American dairy farmers if Mexico bought less of their milk powder. \"We don't even like to speculate about that,\" he says. But it certainly would hurt. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp> \u003cem>Copyright 2017 \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>Listen to the story on All Things Considered:\u003c/strong>\u003cbr>\n\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Garland Reiter is one of the people behind the rise in imported food from Mexico.\u003c/p>\n\u003cp>His family has been growing strawberries in California for generations and selling them under the name \u003ca href=\"https://www.driscolls.com/about/heritage\">Driscoll's\u003c/a>. Today, it's the biggest berry producer in the world.\u003c/p>\n\u003cp>In the early 1990s, the Reiter family started growing strawberries and raspberries in Mexico, in addition to California. It found regions in Mexico where the climate allowed them to grow the fruit — especially raspberries — during seasons of the year when it hadn't been feasible back home. \"Our move really was for year-round product, and quality,\" says Reiter, who is executive chairman of \u003ca href=\"http://www.berry.net/\">Reiter Associated Cos\u003c/a>.\u003c/p>\n\u003cp>The North American Free Trade Agreement went into effect at that same time, in 1994. But that's coincidence, Reiter says; NAFTA had very little to do with the move into Mexico. \"To tell you the truth, we paid minimal attention to that,\" he says.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many U.S. fruit and vegetable growers have made the same move over the past two decades. They've all done it to expand their growing season, and also to cut costs. Farmworkers in Mexico get paid very little, compared with workers in the U.S.\u003c/p>\n\u003cp>Reiter says that when he got to Mexico and met his Mexican partners, he discovered another reason to locate there. \"They're farmers. They want to be farmers. That \u003cem>is\u003c/em> their industry,\" he says. There's excitement about new fruit varieties, and new methods of growing crops.\u003c/p>\n\u003cp>Since 1992, raspberry exports from Mexico to the U.S. have gone from zero to $500 million each year. The increase in strawberry exports is similar. Total Mexican shipments of fruits and vegetables to the U.S. have increased by nine times over the last 25 years, to $12 billion a year. People in the industry say most of that increase is a result of U.S. companies setting up production in Mexico.\u003c/p>\n\u003cp>President Trump's criticism of trade with Mexico has unsettled the industry. He has talked about possibly taxing imports from Mexico or renegotiating NAFTA. Mexican officials have threatened to retaliate against American exports.\u003c/p>\n\u003cp>But Reiter says such moves would just force Americans to pay a little more for Mexican fruit. It wouldn't bring production back to the U.S.\u003c/p>\n\u003cp>\"If you look at the magnitude of the investment in Mexico, there's no way that's coming back to California,\" he says. \"There's absolutely no way.\"\u003c/p>\n\u003cp>He'll keep growing in Mexico, in part because it would be hard for Americans to replace Mexican production with fresh berries from somewhere else.\u003c/p>\n\u003cp>Yet the situation on the other side of the trade equation, for U.S exports to Mexico, is considerably different.\u003c/p>\n\u003cp>Those exports also have grown dramatically, but a lot of them are commodities that Mexico could buy from other places, such as corn, soybeans and dairy products.\u003c/p>\n\u003cp>\"Mexico is the No. 1 buyer of U.S. dairy products in the world,\" says John Wilson, senior vice president of \u003ca href=\"http://www.dfamilk.com/\">Dairy Farmers of America\u003c/a>, a cooperative with 14,000 dairy farmer members.\u003c/p>\n\u003cp>American dairy farmers have come to rely on exports in recent years. About 15 percent of all milk is processed into products for export. Wilson's cooperative, for instance, has a plant in Portales, N.M., that receives milk from big dairy farmers in the eastern part of that state and dries it into powder. \"About 38 million pounds of [milk] powder moved from the plant into Mexico last year,\" Wilson says. In total, the U.S. exports about $500 million worth of milk powder to Mexico annually. That's up more than 10 times from 20 years ago.\u003c/p>\n\u003cp>The U.S. also exports billions of dollars' worth of corn, soybeans and pork. And NAFTA is really important for most of those exports. It allows products to enter Mexico duty-free and makes American commodities just slightly cheaper than the competition, such as milk powder from New Zealand.\u003c/p>\n\u003cp>\"Pennies do matter in the milk business,\" Wilson says. \"It's a very competitive business worldwide, and the presence or absence of a tariff can make or break a deal.\"\u003c/p>\n\u003cp>Wilson says he doesn't know exactly how much it would cost American dairy farmers if Mexico bought less of their milk powder. \"We don't even like to speculate about that,\" he says. But it certainly would hurt. \u003c/p>\n\u003cp>\u003c/p>\n\u003cp> \u003cem>Copyright 2017 \u003ca href=\"http://www.npr.org/\" target=\"_blank\">NPR\u003c/a>.\u003c/em> \u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "Puzder Is Out as Labor Pick, and California Unions Aren’t Mad About It",
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"content": "\u003cp>Less than 24 hours after President Trump’s first choice for U.S. secretary of Labor \u003ca href=\"https://ww2.kqed.org/news/2017/02/15/trump-labor-nominee-andrew-puzder-withdraws-first-cabinet-pick-to-fall/\" target=\"_blank\" rel=\"noopener\">dropped out of the running\u003c/a>, Trump introduced Florida attorney and former National Labor Relations Board member \u003ca href=\"https://www.youtube.com/watch?v=dHNiVvpcrgs\">Andrew Acosta \u003c/a>as his next pick to be the nation’s top labor chief.\u003c/p>\n\u003cp>Acosta, dean of \u003ca href=\"https://law.fiu.edu/\">Florida International University’s law school\u003c/a>, is the first Latino to be nominated for a cabinet position in the Trump administration.\u003c/p>\n\u003cp>In 2003, the Harvard-educated Republican was appointed by President George W. Bush to be the assistant attorney general for the Civil Rights Division of the Department of Justice.\u003c/p>\n\u003cp>Some labor groups in California said they are cautiously optimistic about the new choice.\u003c/p>\n\u003cfigure id=\"attachment_11319956\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11319956 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-800x950.jpg\" alt=\"Andrew Acosta, dean of Florida International University’s law school, is President Trump's new pick for Labor secretary.\" width=\"800\" height=\"950\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-800x950.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-160x190.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-1020x1212.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-1180x1402.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-960x1141.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-240x285.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-375x446.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-520x618.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Andrew Acosta, dean of Florida International University’s law school, is President Trump’s new pick for Labor secretary. \u003ccite>(Florida International University)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“At the very least we know Mr. Acosta has some experience with labor law. And we’re hoping that he’s able to answer some very tough questions about protecting workers, and the role of the secretary of Labor,” said California Labor Federation spokesman Steve Smith.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“We’re reserving judgment for the time being until those questions are asked and answered. But certainly this is light years away from where we were last week with Puzder.”\u003c/p>\n\u003cp>Trump’s first choice for the cabinet post, \u003ca href=\"http://andy.puzder.com/\">Andrew Puzder,\u003c/a> had become mired in personal scandals and controversies over treatment of employees working in the fast food chains overseen by Puzder’s \u003ca href=\"http://www.ckr.com/about.html\">CKE Restaurants\u003c/a>.\u003c/p>\n\u003cp>Puzder started building his vast fast food empire as chief of Southern California-based Carl’s Jr. The Missouri-born former trial attorney took the company way beyond its humble hotdog cart origins to build\u003ca href=\"http://www.ocregister.com/articles/company-741487-puzder-carl.html\" target=\"_blank\" rel=\"noopener\"> CKE Restaurants\u003c/a> which now also includes the Hardee’s and Green Burrito chains.\u003c/p>\n\u003cp>His confirmation hearing had been postponed for months as Puzder apparently struggled to disentangle himself from his financial holdings and deal with mounting opposition from labor groups and even some within the Republican ranks.\u003c/p>\n\u003cp>As Puzder prepared for this week’s scuttled confirmation hearing, graphic details of alleged spousal abuse from the 1980s resurfaced. And scores of \u003ca href=\"https://www.youtube.com/watch?v=zuqV4XfARMQ\">protesters rallied outside Carl’s Jr restaurants\u003c/a> from Anaheim to New York opposing his confirmation.\u003c/p>\n\u003cp>Labor activists are especially aggrieved over Puzder’s opposition to minimum wage hikes and workplace violations racked up by CKE Restaurants.\u003c/p>\n\u003cp>“His entire record as a business man is about undermining and ignoring those very legal protections that he’d be in position to enforce (as U.S. Labor Secretary) and that makes him uniquely unqualified to be labor secretary,” said Roxana Tynan director of the \u003ca href=\"http://www.laane.org/\">Los Angeles Alliance for a New Economy \u003c/a>upon hearing news of Puzder’s withdrawal.\u003c/p>\n\u003cp>“We’re really glad that that message got through to at least some of the senators.”\u003c/p>\n\u003cfigure id=\"attachment_11320153\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/PuzderProtest-800x493.jpg\" alt=\"Fast-food workers protest Andrew Puzder Labor secretary nominee on January 26, 2017 in Los Angeles.\" width=\"800\" height=\"493\" class=\"size-medium wp-image-11320153\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-800x493.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-160x99.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-1020x628.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-1180x727.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-960x592.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-240x148.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-375x231.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-520x320.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Fast-food workers protest Andrew Puzder Labor secretary nominee on January 26, 2017 in Los Angeles. \u003ccite>(FREDERIC J. BROWN/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Puzder pulled out of the running when it was clear he may not have enough Republican votes to be confirmed. He is the first major Trump cabinet nominee to withdraw before a confirmation hearing.\u003c/p>\n\u003cp>In an interview earlier this week former \u003ca href=\"https://www.govtrack.us/congress/members/james_talent/300096\" target=\"_blank\" rel=\"noopener\">Republican Senator Jim Talent\u003c/a> of Missouri seemed confident of confirmation despite the mounting trouble. Talent was helping Puzder, a long-time friend, prepare for what was sure to be a bruising hearing.\u003c/p>\n\u003cp>“A lot of the people opposing him now are in a year or two going to say; this guy is a lot better than we thought because he’s an honest and caring person and he’s going to enforce the law and do everything he can to create jobs and I think a lot of people in Washington are going to like that,” said Talent.\u003c/p>\n\u003cp>Puzder relocated to Southern California from St. Louis in the 1990s, hired by Carl’s Jr founder\u003ca href=\"http://www.ckr.com/about_history.html\" target=\"_blank\" rel=\"noopener\"> Carl Karcher\u003c/a> to help get the franchise back on solid financial footing. The conservative, anti-abortion Catholic was eventually named CEO. He’s credited with expanding its fleet of restaurants and overseeing a controversial ad campaign featuring half-naked girls chowing down on dripping Carl’s Jr burgers.\u003c/p>\n\u003cp>Puzder was also a frequent guest on cable news programs offering conservative analysis and opinion on various issues including opposition to a higher federal minimum wage and President Barack Obama’s Affordable Care Act.\u003c/p>\n\u003cp>But at home in the tony, celebrity studded community of Montecito along the Santa Barbara Coast, Puzder flew under the radar. Several local Republicans contacted for this story were either unaware that Puzder lived in their midst or rarely saw him around town.\u003c/p>\n\u003cp>Last year, Puzder pulled up stakes and relocated his family to Tennessee. He also closed CKE corporate offices near Santa Barbara. Probably for the best, says \u003ca href=\"http://www.independent.com/\" target=\"_blank\" rel=\"noopener\">Santa Barbara Independent \u003c/a>newspaper columnist \u003ca href=\"http://www.independent.com/staff/nick-welsh/\" target=\"_blank\" rel=\"noopener\">Nick Welsh\u003c/a>. Puzder’s cultivated bubble of privacy was probably about to burst wide open.\u003c/p>\n\u003cp>“The sort of cynical joke about Santa Barbara is; oh it’s Saturday, let’s go to the farmers market, let’s have brunch and then we’re going to go protest Trump,” laughs Welsh.\u003c/p>\n\u003cp>“Pudzer would have been a very good target for anti-trump demonstrations; people would have been in front of his house.”\u003c/p>\n\u003cp>Puzder also clashed with many Republicans over his views on immigration. Earlier this month he acknowledged hiring an undocumented housekeeper to work at his Montecito home. Puzder says he fired the woman after discovering her immigration status, paid back taxes related to her employment and claims he also offered to assist her adjust her legal status. Puzder says she declined.\u003c/p>\n\u003cp>That and Puzder’s long-running support of immigration reform made him a target for immigration hardliners.\u003c/p>\n\u003cp>“If we were able to hire people who are currently here illegally, if there were a way to change their status so that they are here illegally that would be a big benefit to us and to everybody else that has to hire workers in that category,” said Puzder during a talk a the conservative American Enterprise Institute in Washington D.C. four years ago.\u003c/p>\n\u003cp>The aggressively business friendly, multi-millionaire tied the rising fortunes of low wage workers to the rising tide of business, which he saw as being hamstring by over burdensome regulations and union organizing.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>Puzder also plowed hundreds of thousands of dollars in donations to various conservative causes and politicians. But he was initially reluctant to endorse candidate Donald Trump, until Mr. Trump had secured the Republican presidential nomination. He then backed that endorsement with campaign contributions topping $250,000.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Less than 24 hours after President Trump’s first choice for U.S. secretary of Labor \u003ca href=\"https://ww2.kqed.org/news/2017/02/15/trump-labor-nominee-andrew-puzder-withdraws-first-cabinet-pick-to-fall/\" target=\"_blank\" rel=\"noopener\">dropped out of the running\u003c/a>, Trump introduced Florida attorney and former National Labor Relations Board member \u003ca href=\"https://www.youtube.com/watch?v=dHNiVvpcrgs\">Andrew Acosta \u003c/a>as his next pick to be the nation’s top labor chief.\u003c/p>\n\u003cp>Acosta, dean of \u003ca href=\"https://law.fiu.edu/\">Florida International University’s law school\u003c/a>, is the first Latino to be nominated for a cabinet position in the Trump administration.\u003c/p>\n\u003cp>In 2003, the Harvard-educated Republican was appointed by President George W. Bush to be the assistant attorney general for the Civil Rights Division of the Department of Justice.\u003c/p>\n\u003cp>Some labor groups in California said they are cautiously optimistic about the new choice.\u003c/p>\n\u003cfigure id=\"attachment_11319956\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11319956 size-medium\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-800x950.jpg\" alt=\"Andrew Acosta, dean of Florida International University’s law school, is President Trump's new pick for Labor secretary.\" width=\"800\" height=\"950\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-800x950.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-160x190.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-1020x1212.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-1180x1402.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-960x1141.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-240x285.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-375x446.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PUZDER-Acosta-FIU-520x618.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Andrew Acosta, dean of Florida International University’s law school, is President Trump’s new pick for Labor secretary. \u003ccite>(Florida International University)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“At the very least we know Mr. Acosta has some experience with labor law. And we’re hoping that he’s able to answer some very tough questions about protecting workers, and the role of the secretary of Labor,” said California Labor Federation spokesman Steve Smith.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“We’re reserving judgment for the time being until those questions are asked and answered. But certainly this is light years away from where we were last week with Puzder.”\u003c/p>\n\u003cp>Trump’s first choice for the cabinet post, \u003ca href=\"http://andy.puzder.com/\">Andrew Puzder,\u003c/a> had become mired in personal scandals and controversies over treatment of employees working in the fast food chains overseen by Puzder’s \u003ca href=\"http://www.ckr.com/about.html\">CKE Restaurants\u003c/a>.\u003c/p>\n\u003cp>Puzder started building his vast fast food empire as chief of Southern California-based Carl’s Jr. The Missouri-born former trial attorney took the company way beyond its humble hotdog cart origins to build\u003ca href=\"http://www.ocregister.com/articles/company-741487-puzder-carl.html\" target=\"_blank\" rel=\"noopener\"> CKE Restaurants\u003c/a> which now also includes the Hardee’s and Green Burrito chains.\u003c/p>\n\u003cp>His confirmation hearing had been postponed for months as Puzder apparently struggled to disentangle himself from his financial holdings and deal with mounting opposition from labor groups and even some within the Republican ranks.\u003c/p>\n\u003cp>As Puzder prepared for this week’s scuttled confirmation hearing, graphic details of alleged spousal abuse from the 1980s resurfaced. And scores of \u003ca href=\"https://www.youtube.com/watch?v=zuqV4XfARMQ\">protesters rallied outside Carl’s Jr restaurants\u003c/a> from Anaheim to New York opposing his confirmation.\u003c/p>\n\u003cp>Labor activists are especially aggrieved over Puzder’s opposition to minimum wage hikes and workplace violations racked up by CKE Restaurants.\u003c/p>\n\u003cp>“His entire record as a business man is about undermining and ignoring those very legal protections that he’d be in position to enforce (as U.S. Labor Secretary) and that makes him uniquely unqualified to be labor secretary,” said Roxana Tynan director of the \u003ca href=\"http://www.laane.org/\">Los Angeles Alliance for a New Economy \u003c/a>upon hearing news of Puzder’s withdrawal.\u003c/p>\n\u003cp>“We’re really glad that that message got through to at least some of the senators.”\u003c/p>\n\u003cfigure id=\"attachment_11320153\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/PuzderProtest-800x493.jpg\" alt=\"Fast-food workers protest Andrew Puzder Labor secretary nominee on January 26, 2017 in Los Angeles.\" width=\"800\" height=\"493\" class=\"size-medium wp-image-11320153\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-800x493.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-160x99.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-1020x628.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-1180x727.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-960x592.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-240x148.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-375x231.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/PuzderProtest-520x320.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Fast-food workers protest Andrew Puzder Labor secretary nominee on January 26, 2017 in Los Angeles. \u003ccite>(FREDERIC J. BROWN/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Puzder pulled out of the running when it was clear he may not have enough Republican votes to be confirmed. He is the first major Trump cabinet nominee to withdraw before a confirmation hearing.\u003c/p>\n\u003cp>In an interview earlier this week former \u003ca href=\"https://www.govtrack.us/congress/members/james_talent/300096\" target=\"_blank\" rel=\"noopener\">Republican Senator Jim Talent\u003c/a> of Missouri seemed confident of confirmation despite the mounting trouble. Talent was helping Puzder, a long-time friend, prepare for what was sure to be a bruising hearing.\u003c/p>\n\u003cp>“A lot of the people opposing him now are in a year or two going to say; this guy is a lot better than we thought because he’s an honest and caring person and he’s going to enforce the law and do everything he can to create jobs and I think a lot of people in Washington are going to like that,” said Talent.\u003c/p>\n\u003cp>Puzder relocated to Southern California from St. Louis in the 1990s, hired by Carl’s Jr founder\u003ca href=\"http://www.ckr.com/about_history.html\" target=\"_blank\" rel=\"noopener\"> Carl Karcher\u003c/a> to help get the franchise back on solid financial footing. The conservative, anti-abortion Catholic was eventually named CEO. He’s credited with expanding its fleet of restaurants and overseeing a controversial ad campaign featuring half-naked girls chowing down on dripping Carl’s Jr burgers.\u003c/p>\n\u003cp>Puzder was also a frequent guest on cable news programs offering conservative analysis and opinion on various issues including opposition to a higher federal minimum wage and President Barack Obama’s Affordable Care Act.\u003c/p>\n\u003cp>But at home in the tony, celebrity studded community of Montecito along the Santa Barbara Coast, Puzder flew under the radar. Several local Republicans contacted for this story were either unaware that Puzder lived in their midst or rarely saw him around town.\u003c/p>\n\u003cp>Last year, Puzder pulled up stakes and relocated his family to Tennessee. He also closed CKE corporate offices near Santa Barbara. Probably for the best, says \u003ca href=\"http://www.independent.com/\" target=\"_blank\" rel=\"noopener\">Santa Barbara Independent \u003c/a>newspaper columnist \u003ca href=\"http://www.independent.com/staff/nick-welsh/\" target=\"_blank\" rel=\"noopener\">Nick Welsh\u003c/a>. Puzder’s cultivated bubble of privacy was probably about to burst wide open.\u003c/p>\n\u003cp>“The sort of cynical joke about Santa Barbara is; oh it’s Saturday, let’s go to the farmers market, let’s have brunch and then we’re going to go protest Trump,” laughs Welsh.\u003c/p>\n\u003cp>“Pudzer would have been a very good target for anti-trump demonstrations; people would have been in front of his house.”\u003c/p>\n\u003cp>Puzder also clashed with many Republicans over his views on immigration. Earlier this month he acknowledged hiring an undocumented housekeeper to work at his Montecito home. Puzder says he fired the woman after discovering her immigration status, paid back taxes related to her employment and claims he also offered to assist her adjust her legal status. Puzder says she declined.\u003c/p>\n\u003cp>That and Puzder’s long-running support of immigration reform made him a target for immigration hardliners.\u003c/p>\n\u003cp>“If we were able to hire people who are currently here illegally, if there were a way to change their status so that they are here illegally that would be a big benefit to us and to everybody else that has to hire workers in that category,” said Puzder during a talk a the conservative American Enterprise Institute in Washington D.C. four years ago.\u003c/p>\n\u003cp>The aggressively business friendly, multi-millionaire tied the rising fortunes of low wage workers to the rising tide of business, which he saw as being hamstring by over burdensome regulations and union organizing.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Puzder also plowed hundreds of thousands of dollars in donations to various conservative causes and politicians. But he was initially reluctant to endorse candidate Donald Trump, until Mr. Trump had secured the Republican presidential nomination. He then backed that endorsement with campaign contributions topping $250,000.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>In cities around America, thousands of construction companies, restaurants and other businesses are bracing for \"A Day Without Immigrants,\" a combination boycott/strike that highlights the contributions of immigrants to U.S. business and culture.\u003c/p>\n\u003cp>The movement is a response to President Trump's immigration agenda, which includes a pledge to seal the U.S. border with Mexico and a travel ban on citizens of seven majority-Muslim countries (which is \u003ca href=\"http://www.npr.org/sections/parallels/2017/02/13/514966051/for-refugees-and-advocates-trump-immigration-order-stay-leads-to-disarray\">now on hold\u003c/a>).\u003c/p>\n\u003cp>Some businesses are closing for the day; others are staying open and pledging to contribute a share of the day's proceeds to nonprofits that aid Latino communities. In a number of cases, business owners are abiding by the wishes of their staffs, after holding votes to decide whether to open.\u003c/p>\n\u003cp>[contextly_sidebar id=\"PgL0tf0mQohRq9Dp4d1Q4rwLOH4wuXFp\"]\u003c/p>\n\u003cp>Several closures are high-profile: Chef and entrepreneur \u003ca href=\"http://www.npr.org/sections/thesalt/2017/02/15/515441650/chef-jos-andr-s-to-close-restaurants-for-day-without-immigrants\">José Andrés told NPR\u003c/a> this week, \"It was a very easy decision\" to close his restaurants in Washington, D.C., saying he wants to support his employees who had planned not to work Thursday.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Celebrity chef Rick Bayless, who's famous for popularizing the complex flavors of Mexico's cuisine, \u003ca href=\"https://twitter.com/Rick_Bayless/status/832018508120629248\">says he closed\u003c/a> four Chicago restaurants for the day out of respect for his staff's vote.\u003c/p>\n\u003cp>From Los Angeles, Danielle Karson reports for our Newscast unit:\u003c/p>\n\u003cblockquote>\u003cp>\"Thousands of immigrants are skipping work; not shopping; not eating at restaurants, buying gas, or sending their children to school. LA County Supervisor Hilda Solis says immigrants, regardless of legal status, contribute 40 percent of LA County's gross domestic product: almost $300 billion a year.\u003c/p>\n\u003cp>\" 'It's incumbent on us to be brave, which we're prepared to do,' Solis said. 'To step up; to say to him, not in my house; not in my county; not in my state.'\"\u003c/p>\u003c/blockquote>\n\u003cp>The day of protest comes after Immigration and Customs Enforcement agents alarmed immigrant rights advocates by arresting some 680 people in raids across the U.S. last week. \u003ca href=\"http://www.npr.org/sections/thetwo-way/2017/02/13/515032423/75-percent-of-immigration-raid-arrests-were-for-criminal-convictions-dhs-says\">As NPR has reported\u003c/a>, the Department of Homeland Security has called those raids routine, saying they targeted people who had criminal convictions.\u003c/p>\n\u003cp>In Charlotte, North Carolina, teacher Hayley Rowley tweeted an image of empty desks in her classroom \"as over half my class stays home,\" \u003ca href=\"https://twitter.com/HayleyaRowley/status/832249028251414528\">she wrote\u003c/a>.\u003c/p>\n\u003cp>https://twitter.com/HayleyaRowley/status/832249028251414528\u003c/p>\n\u003cp>More than 250 businesses in the Charlotte region are closed today, \u003ca href=\"http://wfae.org/post/more-250-businesses-remain-closed-thursday-immigrants-protest-ice-arrests?utm_content=buffer63570&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer\">member station WFAE reports\u003c/a>.\u003c/p>\n\u003cp>In Kansas City, Missouri, protesters spilled off of the steps of City Hall and into a plaza — one of many cities where public rallies are being held today. According to member station \u003ca href=\"https://twitter.com/laurazig/status/832279772550070276\">KCUR's Laura Ziegler\u003c/a>, hundreds of people in Kansas City chanted \"USA! USA!\" in support of immigrants.\u003c/p>\n\u003cp>https://twitter.com/laurazig/status/832279772550070276\u003c/p>\n\u003cp>In Washington, D.C., at least two schools are closed for the day. And Ahmad Erfani, who was born in Iran and grew up in France, says he's closing his bakery, Le Caprice.\u003c/p>\n\u003cp>\"Mostly the people who work here are immigrants. We spoke with them. They thought it's good for solidarity with the others to not work,\" he tells \u003ca href=\"http://wamu.org/story/17/02/16/bars-restaurants-schools-close-doors-day-without-immigrants/\">member station WAMU\u003c/a>.\u003c/p>\n\u003cp>Erfani added, \"They are hard workers. I am not happy when I see they are not very happy these days, because it is difficult. They work hard, they come here 6 in the morning. It is not very comfortable for us.\"\u003c/p>\n\u003cp>The Day Without Immigrants comes more than 10 years after another national movement, the Great American Boycott, used a May 1 boycott to protest the \u003ca href=\"http://www.npr.org/templates/story/story.php?storyId=5373673\">Illegal Immigration Control Act of 2005\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>That legislation, also called HR 4437, would have required hundreds of miles of new fencing to be built along the Mexican border, along with toughening the federal stance toward people who are in the country illegally — and toward anyone in the U.S. who offers them shelter or aid. The bill won passage in the House of Representatives before failing in the Senate.\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg src=\"http://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=%27A+Day+Without+Immigrants%27+Promises+A+National+Strike+Thursday&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>In cities around America, thousands of construction companies, restaurants and other businesses are bracing for \"A Day Without Immigrants,\" a combination boycott/strike that highlights the contributions of immigrants to U.S. business and culture.\u003c/p>\n\u003cp>The movement is a response to President Trump's immigration agenda, which includes a pledge to seal the U.S. border with Mexico and a travel ban on citizens of seven majority-Muslim countries (which is \u003ca href=\"http://www.npr.org/sections/parallels/2017/02/13/514966051/for-refugees-and-advocates-trump-immigration-order-stay-leads-to-disarray\">now on hold\u003c/a>).\u003c/p>\n\u003cp>Some businesses are closing for the day; others are staying open and pledging to contribute a share of the day's proceeds to nonprofits that aid Latino communities. In a number of cases, business owners are abiding by the wishes of their staffs, after holding votes to decide whether to open.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>Several closures are high-profile: Chef and entrepreneur \u003ca href=\"http://www.npr.org/sections/thesalt/2017/02/15/515441650/chef-jos-andr-s-to-close-restaurants-for-day-without-immigrants\">José Andrés told NPR\u003c/a> this week, \"It was a very easy decision\" to close his restaurants in Washington, D.C., saying he wants to support his employees who had planned not to work Thursday.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Celebrity chef Rick Bayless, who's famous for popularizing the complex flavors of Mexico's cuisine, \u003ca href=\"https://twitter.com/Rick_Bayless/status/832018508120629248\">says he closed\u003c/a> four Chicago restaurants for the day out of respect for his staff's vote.\u003c/p>\n\u003cp>From Los Angeles, Danielle Karson reports for our Newscast unit:\u003c/p>\n\u003cblockquote>\u003cp>\"Thousands of immigrants are skipping work; not shopping; not eating at restaurants, buying gas, or sending their children to school. LA County Supervisor Hilda Solis says immigrants, regardless of legal status, contribute 40 percent of LA County's gross domestic product: almost $300 billion a year.\u003c/p>\n\u003cp>\" 'It's incumbent on us to be brave, which we're prepared to do,' Solis said. 'To step up; to say to him, not in my house; not in my county; not in my state.'\"\u003c/p>\u003c/blockquote>\n\u003cp>The day of protest comes after Immigration and Customs Enforcement agents alarmed immigrant rights advocates by arresting some 680 people in raids across the U.S. last week. \u003ca href=\"http://www.npr.org/sections/thetwo-way/2017/02/13/515032423/75-percent-of-immigration-raid-arrests-were-for-criminal-convictions-dhs-says\">As NPR has reported\u003c/a>, the Department of Homeland Security has called those raids routine, saying they targeted people who had criminal convictions.\u003c/p>\n\u003cp>In Charlotte, North Carolina, teacher Hayley Rowley tweeted an image of empty desks in her classroom \"as over half my class stays home,\" \u003ca href=\"https://twitter.com/HayleyaRowley/status/832249028251414528\">she wrote\u003c/a>.\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>More than 250 businesses in the Charlotte region are closed today, \u003ca href=\"http://wfae.org/post/more-250-businesses-remain-closed-thursday-immigrants-protest-ice-arrests?utm_content=buffer63570&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer\">member station WFAE reports\u003c/a>.\u003c/p>\n\u003cp>In Kansas City, Missouri, protesters spilled off of the steps of City Hall and into a plaza — one of many cities where public rallies are being held today. According to member station \u003ca href=\"https://twitter.com/laurazig/status/832279772550070276\">KCUR's Laura Ziegler\u003c/a>, hundreds of people in Kansas City chanted \"USA! USA!\" in support of immigrants.\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>In Washington, D.C., at least two schools are closed for the day. And Ahmad Erfani, who was born in Iran and grew up in France, says he's closing his bakery, Le Caprice.\u003c/p>\n\u003cp>\"Mostly the people who work here are immigrants. We spoke with them. They thought it's good for solidarity with the others to not work,\" he tells \u003ca href=\"http://wamu.org/story/17/02/16/bars-restaurants-schools-close-doors-day-without-immigrants/\">member station WAMU\u003c/a>.\u003c/p>\n\u003cp>Erfani added, \"They are hard workers. I am not happy when I see they are not very happy these days, because it is difficult. They work hard, they come here 6 in the morning. It is not very comfortable for us.\"\u003c/p>\n\u003cp>The Day Without Immigrants comes more than 10 years after another national movement, the Great American Boycott, used a May 1 boycott to protest the \u003ca href=\"http://www.npr.org/templates/story/story.php?storyId=5373673\">Illegal Immigration Control Act of 2005\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>That legislation, also called HR 4437, would have required hundreds of miles of new fencing to be built along the Mexican border, along with toughening the federal stance toward people who are in the country illegally — and toward anyone in the U.S. who offers them shelter or aid. The bill won passage in the House of Representatives before failing in the Senate.\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg src=\"http://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=%27A+Day+Without+Immigrants%27+Promises+A+National+Strike+Thursday&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "Richmond Cuts Jobs, Street Repairs, Library Books to Keep Up With Pension Costs",
"title": "Richmond Cuts Jobs, Street Repairs, Library Books to Keep Up With Pension Costs",
"headTitle": "The California Report | KQED News",
"content": "\u003cp>When the state auditor gauged the fiscal health of California cities in 2015, this port community on the eastern shore of San Francisco Bay made a short list of six distressed municipalities at risk of bankruptcy.\u003c/p>\n\u003cp>Richmond has cut about 200 jobs — roughly 20 percent of its workforce — since 2008. Its credit rating is at junk status. And in November, voters rejected a tax increase that city leaders had hoped would help close a chronic budget deficit.\u003c/p>\n\u003cp>“I don’t think there’s any chance we can avoid it,” said former City Councilman Vinay Pimple, referring to bankruptcy.\u003c/p>\n\u003cp>A major cause of Richmond’s problems: relentless growth in pension costs.\u003c/p>\n\u003cp>Payments for employee pensions, pension-related debt and retiree health care have climbed from $25 million to $44 million in the last five years, outpacing all other expenses.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>By 2021, retirement expenses could exceed $70 million — 41 percent of the city’s general fund.\u003c/p>\n\u003cp>Richmond is a stark example of how pension costs are causing fiscal stress in cities across California. Four municipalities — Vallejo, Stockton, San Bernardino and Mammoth Lakes — have filed for \u003ca href=\"http://www.pbs.org/newshour/updates/municipalities-declared-bankruptcy/\">bankruptcy\u003c/a> protection since 2008. Others are on the brink.\u003c/p>\n\u003cp>“The truth is that there are cities all over the state that just aren’t owning up to all their problems,” said San Bernardino City Manager Mark Scott.\u003c/p>\n\u003cp>Increasingly, pension costs consume \u003ca href=\"http://www.latimes.com/projects/la-me-pension-squeeze/\">15 percent or more\u003c/a> of big city budgets, crowding out basic services and leaving local governments more vulnerable than ever to the next economic downturn.\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-medium wp-image-11318519\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondChart-800x470.jpg\" alt=\"RichmondChart\" width=\"800\" height=\"470\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-160x94.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-240x141.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-375x220.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-520x306.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/p>\n\u003cp>Richmond is a racially diverse, working-class city of 110,000 whose largest employer is a massive Chevron oil refinery. Like many California municipalities, Richmond dug a financial hole for itself by granting generous retirement benefits to police and firefighters on the assumption that pension fund investments would grow fast enough to cover the cost.\u003c/p>\n\u003cp>That optimism proved unfounded, and now the bill is coming due.\u003c/p>\n\u003cp>City Manager Bill Lindsay insists that Richmond can avoid going off a cliff. Last year, financial consultants mapped a path to stability for the city by 2021 — but at a considerable cost in public services.\u003c/p>\n\u003cp>The city cut \u003ca href=\"http://www.mercurynews.com/2016/07/06/facing-prospect-of-further-credit-downgrade-richmond-passes-budget/\">11 positions\u003c/a>, reduced after-school and senior classes, eliminated neighborhood cleanups to tackle illegal trash dumping, and trimmed spending on new library books — saving $12 million total.\u003c/p>\n\u003cp>City officials also negotiated a four-year contract with firefighters that freezes salaries and requires firefighters to pay $4,800 a year each toward retirement health care. Until then, the benefit was fully funded by taxpayers.\u003c/p>\n\u003caside class=\"pullquote alignright\">'It’s a huge mess. I don’t know how it’s going to get resolved. One of these days, it’s just going to come crashing down.'\u003ccite>Mayor Tom Butt\u003c/cite>\u003c/aside>\n\u003cp>“I’ve seen some of my good friends go through it in Vallejo and Stockton, and what we found out during those [bankruptcies] is that your union contracts aren’t necessarily guaranteed,” said Jim Russey, president of Richmond Firefighters Local 188.\u003c/p>\n\u003cp>Richmond’s consultants said the city had to find \u003ca href=\"http://documents.latimes.com/richmond-five-year-budget-forecast-2016/\">$15 million\u003c/a> more in new revenue or budget cuts by 2021. Lindsay said the city has been looking hard for additional savings, and the police union recently agreed to have its members contribute toward retirement health care.\u003c/p>\n\u003cp>“If you look at the five-year forecast, with reasonable assumptions, even with the growth in pension cost, it does start to generate a surplus,” Lindsay said.\u003c/p>\n\u003cp>Joe Nation, a former Democratic state legislator who teaches public policy at Stanford’s Institute for Economic Policy Research, is not so sanguine. He reviewed Richmond’s retirement cost projections and said they leave little room to maneuver.\u003c/p>\n\u003cp>Over the next five years, every dollar the city collects in new revenue will go toward retirement costs, leaving little hope of restoring city services, Nation said.\u003c/p>\n\u003cp>“If there is an economic downturn of any kind, I can imagine that they could be pushed to the brink of bankruptcy, if not bankruptcy,” Nation said.\u003c/p>\n\u003cp>Last month, the California Public Employees’ Retirement System (CalPERS), the state’s main pension fund, lowered its projected rate of return on investments from 7.5 percent to 7 percent per year. That means Richmond and other communities will have to pay \u003ca href=\"http://documents.latimes.com/calpers-circular-letter/\">more\u003c/a> each year to fund current and future pension benefits.\u003c/p>\n\u003cp>The change is expected to increase local government pension payments by at least 20 percent starting in 2018, according to CalPERS spokeswoman Amy Morgan.\u003c/p>\n\u003cfigure id=\"attachment_11318524\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11318524\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondStreet-800x895.jpg\" alt=\"The city of Richmond’s pension-related budget problems have taken a toll on public services, including street repair. \" width=\"800\" height=\"895\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-800x895.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-160x179.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-1020x1141.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-1180x1320.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-960x1074.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-240x268.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-375x419.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-520x581.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The city of Richmond’s pension-related budget problems have taken a toll on public services, including street repair. \u003ccite>(Robert Durell/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>An analysis by the nonprofit news organization CALmatters indicates that Richmond’s retirement-related expenses could grow to more than $70 million per year by 2021. That represents 41 percent of a projected $174 million general fund budget.\u003c/p>\n\u003cp>Lindsay said the city’s estimates of future pension costs are lower because of different assumptions about salary increases and other costs.\u003c/p>\n\u003cp>Voters approved a sales tax increase in 2014 to help stabilize the city’s finances. But in November, voters rejected \u003ca href=\"http://www.ci.richmond.ca.us/DocumentCenter/View/39147\">an increase in the property transfer tax\u003c/a> that was expected to bring in an additional $4 million to $6 million annually.\u003c/p>\n\u003cp>Lindsay said the city was never counting on the property transfer tax in its five-year plan. If the city needed more cash, he says Richmond has properties it can sell.\u003c/p>\n\u003cp>“Budget management is much more difficult in Richmond than in Beverly Hills, but you still manage it,” Lindsay said. “To say it’s spiraling out of control into bankruptcy does incredible damage to our community and it’s just not accurate.”\u003c/p>\n\u003cp>Richmond is especially hard hit by personnel costs because of high salaries for public employees. The city’s \u003ca href=\"http://publicpay.ca.gov/Reports/Cities/Cities.aspx\">average salary of $92,000\u003c/a> for its 938 employees was fifth highest in California as of 2015, according to the state controller. The city’s median household income is $54,857.\u003c/p>\n\u003cp>Police officers and firefighters in Richmond make more than \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/richmond-city-safety-2015.pdf\">$137,000\u003c/a> per year on average, compared with an average $128,000 per year for Berkeley \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/berkeley-city-safety-police-2015.pdf\">police\u003c/a> and \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/berkeley-city-safety-fire-2015.pdf\">firefighters\u003c/a>, where housing prices are more than 60 percent higher than in Richmond.\u003c/p>\n\u003cp>Public safety salaries averaged \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/oakland-city-safety-2015.pdf\">$115,000\u003c/a> in Oakland and \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/vallejo-city-safety-2015.pdf\">$112,000\u003c/a> in Vallejo.\u003c/p>\n\u003cfigure id=\"attachment_11318522\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11318522\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondMayor-800x573.jpg\" alt=\"Mayor Tom Butt says of Richmond’s pension-related financial problems: 'It’s a huge mess ... One of these days, it’s just going to come crashing down.' \" width=\"800\" height=\"573\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-800x573.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-160x115.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-1020x730.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-1180x845.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-960x688.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-240x172.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-375x269.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-520x372.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Mayor Tom Butt says of Richmond’s pension-related financial problems: 'It’s a huge mess ... One of these days, it’s just going to come crashing down.' \u003ccite>(Robert Durell/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Richmond Mayor Tom Butt, an architect and general contractor who has served on the City Council for two decades, says the city that was once among the state’s most dangerous has little choice but to pay higher salaries to compete for employees with nearby communities that are safer and more affluent.\u003c/p>\n\u003cp>“You can’t convince anyone here that they deserve less than anybody in any other city,” Butt said.\u003c/p>\n\u003cp>Lindsay said the decision to offer higher salaries for public safety employees was strategic.\u003c/p>\n\u003cp>“The City Council made a conscious decision to put a lot into public safety, in particular reducing violent crime. And largely, we’ve been successful,” Lindsay said.\u003c/p>\n\u003cp>Violent crimes have been declining in the city over the past decade, with homicides dropping to a low of 11 in 2014. But Richmond is experiencing an uptick, recording 24 homicides in 2016, according to the police department.\u003c/p>\n\u003cp>Part of the challenge with public safety costs dates to 1999, when Richmond, like many local governments, matched the state’s decision to sweeten retirement benefits for California Highway Patrol officers.\u003c/p>\n\u003cp>CHP officers could retire as early as 50 with 3 percent of salary for each year of service, providing up to 90 percent of their peak salaries in retirement. Other police departments soon demanded and got similar treatment.\u003c/p>\n\u003cp>Richmond firefighters are eligible to retire at age 55 with 3 percent of salary for each year of service. Recent hires will have to work longer to qualify for a less generous formula under legislation passed in 2013.\u003c/p>\n\u003cfigure id=\"attachment_11318528\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11318528\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondTrainingFacil-800x504.jpg\" alt=\"To cope with severe budgetary pressures, the city of Richmond put this Fire Department training facility up for sale.\" width=\"800\" height=\"504\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-800x504.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-160x101.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-1020x643.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-1180x744.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-960x605.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-240x151.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-375x236.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-520x328.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">To cope with severe budgetary pressures, the city of Richmond put this Fire Department training facility up for sale. \u003ccite>(Robert Durell/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Richmond’s \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/richmond-city-safety-2015.pdf\">actuarial pension report\u003c/a> shows there are nearly two retirees for every police officer or firefighter currently on the job.\u003c/p>\n\u003cp>In a way, Richmond is a preview of what California cities face in the years ahead. According to \u003ca href=\"https://www.calpers.ca.gov/docs/board-agendas/201609/financeadmin/item-8c-01.pdf\">CalPERS\u003c/a>, there were two active workers for every retiree in its system in 2001. Today, there are 1.3 workers for each retiree. In the next 10 or 20 years, there will be as few as 0.6 workers for each retiree collecting a pension.\u003c/p>\n\u003cp>Because benefits have already been promised to today’s workers and retirees, cuts in pension benefits for new employees do little to ease the immediate burden. It “means decades before the full burden of this will be completely dealt with,” said Phil Batchelor, former Contra Costa County administrator and former interim city manager for Richmond.\u003c/p>\n\u003cp>Today, Richmond’s taxpayers are spending more to make up for underperforming pension investments. CalPERS projects that the city’s payments for unfunded pension liabilities will more than double in the next five years, from $11.2 million to $26.8 million.\u003c/p>\n\u003cp>Now, the lower assumed rate of investment return is projected to add nearly $9 million to Richmond’s costs by 2021.\u003c/p>\n\u003cp>“It’s a huge mess,” said Mayor Butt. “I don’t know how it’s going to get resolved. One of these days, it’s just going to come crashing down.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>Judy Lin is a reporter at \u003ca href=\"https://calmatters.org/\" target=\"_blank\">CALmatters\u003c/a>, a nonprofit journalism venture in Sacramento covering state policy and politics. This story is part of an ongoing project involving the Los Angeles Times, CALmatters and Capital Public Radio.\u003c/em>\u003c/p>\n\n",
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"excerpt": "The city has cut roughly 20 percent of its workforce since 2008. Its credit rating is at junk status. And in November, voters rejected a tax increase that city leaders had hoped would help close a chronic budget deficit.",
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"description": "The city has cut roughly 20 percent of its workforce since 2008. Its credit rating is at junk status. And in November, voters rejected a tax increase that city leaders had hoped would help close a chronic budget deficit.",
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"nprByline": "\u003cstrong>\u003ca href=\"https://calmatters.org/about/staff/judy-lin/\">Judy Lin\u003c/a>\u003cbr>\u003ca href=\"https://calmatters.org/\">CALmatters\u003c/a>\u003c/strong>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>When the state auditor gauged the fiscal health of California cities in 2015, this port community on the eastern shore of San Francisco Bay made a short list of six distressed municipalities at risk of bankruptcy.\u003c/p>\n\u003cp>Richmond has cut about 200 jobs — roughly 20 percent of its workforce — since 2008. Its credit rating is at junk status. And in November, voters rejected a tax increase that city leaders had hoped would help close a chronic budget deficit.\u003c/p>\n\u003cp>“I don’t think there’s any chance we can avoid it,” said former City Councilman Vinay Pimple, referring to bankruptcy.\u003c/p>\n\u003cp>A major cause of Richmond’s problems: relentless growth in pension costs.\u003c/p>\n\u003cp>Payments for employee pensions, pension-related debt and retiree health care have climbed from $25 million to $44 million in the last five years, outpacing all other expenses.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>By 2021, retirement expenses could exceed $70 million — 41 percent of the city’s general fund.\u003c/p>\n\u003cp>Richmond is a stark example of how pension costs are causing fiscal stress in cities across California. Four municipalities — Vallejo, Stockton, San Bernardino and Mammoth Lakes — have filed for \u003ca href=\"http://www.pbs.org/newshour/updates/municipalities-declared-bankruptcy/\">bankruptcy\u003c/a> protection since 2008. Others are on the brink.\u003c/p>\n\u003cp>“The truth is that there are cities all over the state that just aren’t owning up to all their problems,” said San Bernardino City Manager Mark Scott.\u003c/p>\n\u003cp>Increasingly, pension costs consume \u003ca href=\"http://www.latimes.com/projects/la-me-pension-squeeze/\">15 percent or more\u003c/a> of big city budgets, crowding out basic services and leaving local governments more vulnerable than ever to the next economic downturn.\u003c/p>\n\u003cp>\u003cimg class=\"aligncenter size-medium wp-image-11318519\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondChart-800x470.jpg\" alt=\"RichmondChart\" width=\"800\" height=\"470\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-160x94.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-240x141.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-375x220.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondChart-520x306.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/p>\n\u003cp>Richmond is a racially diverse, working-class city of 110,000 whose largest employer is a massive Chevron oil refinery. Like many California municipalities, Richmond dug a financial hole for itself by granting generous retirement benefits to police and firefighters on the assumption that pension fund investments would grow fast enough to cover the cost.\u003c/p>\n\u003cp>That optimism proved unfounded, and now the bill is coming due.\u003c/p>\n\u003cp>City Manager Bill Lindsay insists that Richmond can avoid going off a cliff. Last year, financial consultants mapped a path to stability for the city by 2021 — but at a considerable cost in public services.\u003c/p>\n\u003cp>The city cut \u003ca href=\"http://www.mercurynews.com/2016/07/06/facing-prospect-of-further-credit-downgrade-richmond-passes-budget/\">11 positions\u003c/a>, reduced after-school and senior classes, eliminated neighborhood cleanups to tackle illegal trash dumping, and trimmed spending on new library books — saving $12 million total.\u003c/p>\n\u003cp>City officials also negotiated a four-year contract with firefighters that freezes salaries and requires firefighters to pay $4,800 a year each toward retirement health care. Until then, the benefit was fully funded by taxpayers.\u003c/p>\n\u003caside class=\"pullquote alignright\">'It’s a huge mess. I don’t know how it’s going to get resolved. One of these days, it’s just going to come crashing down.'\u003ccite>Mayor Tom Butt\u003c/cite>\u003c/aside>\n\u003cp>“I’ve seen some of my good friends go through it in Vallejo and Stockton, and what we found out during those [bankruptcies] is that your union contracts aren’t necessarily guaranteed,” said Jim Russey, president of Richmond Firefighters Local 188.\u003c/p>\n\u003cp>Richmond’s consultants said the city had to find \u003ca href=\"http://documents.latimes.com/richmond-five-year-budget-forecast-2016/\">$15 million\u003c/a> more in new revenue or budget cuts by 2021. Lindsay said the city has been looking hard for additional savings, and the police union recently agreed to have its members contribute toward retirement health care.\u003c/p>\n\u003cp>“If you look at the five-year forecast, with reasonable assumptions, even with the growth in pension cost, it does start to generate a surplus,” Lindsay said.\u003c/p>\n\u003cp>Joe Nation, a former Democratic state legislator who teaches public policy at Stanford’s Institute for Economic Policy Research, is not so sanguine. He reviewed Richmond’s retirement cost projections and said they leave little room to maneuver.\u003c/p>\n\u003cp>Over the next five years, every dollar the city collects in new revenue will go toward retirement costs, leaving little hope of restoring city services, Nation said.\u003c/p>\n\u003cp>“If there is an economic downturn of any kind, I can imagine that they could be pushed to the brink of bankruptcy, if not bankruptcy,” Nation said.\u003c/p>\n\u003cp>Last month, the California Public Employees’ Retirement System (CalPERS), the state’s main pension fund, lowered its projected rate of return on investments from 7.5 percent to 7 percent per year. That means Richmond and other communities will have to pay \u003ca href=\"http://documents.latimes.com/calpers-circular-letter/\">more\u003c/a> each year to fund current and future pension benefits.\u003c/p>\n\u003cp>The change is expected to increase local government pension payments by at least 20 percent starting in 2018, according to CalPERS spokeswoman Amy Morgan.\u003c/p>\n\u003cfigure id=\"attachment_11318524\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11318524\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondStreet-800x895.jpg\" alt=\"The city of Richmond’s pension-related budget problems have taken a toll on public services, including street repair. \" width=\"800\" height=\"895\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-800x895.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-160x179.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-1020x1141.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-1180x1320.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-960x1074.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-240x268.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-375x419.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondStreet-520x581.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The city of Richmond’s pension-related budget problems have taken a toll on public services, including street repair. \u003ccite>(Robert Durell/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>An analysis by the nonprofit news organization CALmatters indicates that Richmond’s retirement-related expenses could grow to more than $70 million per year by 2021. That represents 41 percent of a projected $174 million general fund budget.\u003c/p>\n\u003cp>Lindsay said the city’s estimates of future pension costs are lower because of different assumptions about salary increases and other costs.\u003c/p>\n\u003cp>Voters approved a sales tax increase in 2014 to help stabilize the city’s finances. But in November, voters rejected \u003ca href=\"http://www.ci.richmond.ca.us/DocumentCenter/View/39147\">an increase in the property transfer tax\u003c/a> that was expected to bring in an additional $4 million to $6 million annually.\u003c/p>\n\u003cp>Lindsay said the city was never counting on the property transfer tax in its five-year plan. If the city needed more cash, he says Richmond has properties it can sell.\u003c/p>\n\u003cp>“Budget management is much more difficult in Richmond than in Beverly Hills, but you still manage it,” Lindsay said. “To say it’s spiraling out of control into bankruptcy does incredible damage to our community and it’s just not accurate.”\u003c/p>\n\u003cp>Richmond is especially hard hit by personnel costs because of high salaries for public employees. The city’s \u003ca href=\"http://publicpay.ca.gov/Reports/Cities/Cities.aspx\">average salary of $92,000\u003c/a> for its 938 employees was fifth highest in California as of 2015, according to the state controller. The city’s median household income is $54,857.\u003c/p>\n\u003cp>Police officers and firefighters in Richmond make more than \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/richmond-city-safety-2015.pdf\">$137,000\u003c/a> per year on average, compared with an average $128,000 per year for Berkeley \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/berkeley-city-safety-police-2015.pdf\">police\u003c/a> and \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/berkeley-city-safety-fire-2015.pdf\">firefighters\u003c/a>, where housing prices are more than 60 percent higher than in Richmond.\u003c/p>\n\u003cp>Public safety salaries averaged \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/oakland-city-safety-2015.pdf\">$115,000\u003c/a> in Oakland and \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/vallejo-city-safety-2015.pdf\">$112,000\u003c/a> in Vallejo.\u003c/p>\n\u003cfigure id=\"attachment_11318522\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11318522\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondMayor-800x573.jpg\" alt=\"Mayor Tom Butt says of Richmond’s pension-related financial problems: 'It’s a huge mess ... One of these days, it’s just going to come crashing down.' \" width=\"800\" height=\"573\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-800x573.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-160x115.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-1020x730.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-1180x845.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-960x688.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-240x172.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-375x269.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondMayor-520x372.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Mayor Tom Butt says of Richmond’s pension-related financial problems: 'It’s a huge mess ... One of these days, it’s just going to come crashing down.' \u003ccite>(Robert Durell/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Richmond Mayor Tom Butt, an architect and general contractor who has served on the City Council for two decades, says the city that was once among the state’s most dangerous has little choice but to pay higher salaries to compete for employees with nearby communities that are safer and more affluent.\u003c/p>\n\u003cp>“You can’t convince anyone here that they deserve less than anybody in any other city,” Butt said.\u003c/p>\n\u003cp>Lindsay said the decision to offer higher salaries for public safety employees was strategic.\u003c/p>\n\u003cp>“The City Council made a conscious decision to put a lot into public safety, in particular reducing violent crime. And largely, we’ve been successful,” Lindsay said.\u003c/p>\n\u003cp>Violent crimes have been declining in the city over the past decade, with homicides dropping to a low of 11 in 2014. But Richmond is experiencing an uptick, recording 24 homicides in 2016, according to the police department.\u003c/p>\n\u003cp>Part of the challenge with public safety costs dates to 1999, when Richmond, like many local governments, matched the state’s decision to sweeten retirement benefits for California Highway Patrol officers.\u003c/p>\n\u003cp>CHP officers could retire as early as 50 with 3 percent of salary for each year of service, providing up to 90 percent of their peak salaries in retirement. Other police departments soon demanded and got similar treatment.\u003c/p>\n\u003cp>Richmond firefighters are eligible to retire at age 55 with 3 percent of salary for each year of service. Recent hires will have to work longer to qualify for a less generous formula under legislation passed in 2013.\u003c/p>\n\u003cfigure id=\"attachment_11318528\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11318528\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/RichmondTrainingFacil-800x504.jpg\" alt=\"To cope with severe budgetary pressures, the city of Richmond put this Fire Department training facility up for sale.\" width=\"800\" height=\"504\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-800x504.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-160x101.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-1020x643.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-1180x744.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-960x605.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-240x151.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-375x236.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2017/02/RichmondTrainingFacil-520x328.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">To cope with severe budgetary pressures, the city of Richmond put this Fire Department training facility up for sale. \u003ccite>(Robert Durell/CALmatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Richmond’s \u003ca href=\"https://www.calpers.ca.gov/docs/actuarial-reports/2015/richmond-city-safety-2015.pdf\">actuarial pension report\u003c/a> shows there are nearly two retirees for every police officer or firefighter currently on the job.\u003c/p>\n\u003cp>In a way, Richmond is a preview of what California cities face in the years ahead. According to \u003ca href=\"https://www.calpers.ca.gov/docs/board-agendas/201609/financeadmin/item-8c-01.pdf\">CalPERS\u003c/a>, there were two active workers for every retiree in its system in 2001. Today, there are 1.3 workers for each retiree. In the next 10 or 20 years, there will be as few as 0.6 workers for each retiree collecting a pension.\u003c/p>\n\u003cp>Because benefits have already been promised to today’s workers and retirees, cuts in pension benefits for new employees do little to ease the immediate burden. It “means decades before the full burden of this will be completely dealt with,” said Phil Batchelor, former Contra Costa County administrator and former interim city manager for Richmond.\u003c/p>\n\u003cp>Today, Richmond’s taxpayers are spending more to make up for underperforming pension investments. CalPERS projects that the city’s payments for unfunded pension liabilities will more than double in the next five years, from $11.2 million to $26.8 million.\u003c/p>\n\u003cp>Now, the lower assumed rate of investment return is projected to add nearly $9 million to Richmond’s costs by 2021.\u003c/p>\n\u003cp>“It’s a huge mess,” said Mayor Butt. “I don’t know how it’s going to get resolved. One of these days, it’s just going to come crashing down.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>Judy Lin is a reporter at \u003ca href=\"https://calmatters.org/\" target=\"_blank\">CALmatters\u003c/a>, a nonprofit journalism venture in Sacramento covering state policy and politics. This story is part of an ongoing project involving the Los Angeles Times, CALmatters and Capital Public Radio.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "Trump Labor Nominee Andrew Puzder Withdraws, First Cabinet Pick to Fall",
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"content": "\u003cp>\u003cstrong>Updated at 4:15 p.m. ET\u003c/strong>\u003c/p>\n\u003cp>Fast-food executive Andrew Puzder withdrew his nomination to head the Labor Department on Wednesday as his support on Capitol Hill faltered. Facing criticism from both sides of the aisle, Puzder became the first Trump Cabinet pick whose nomination failed.\u003c/p>\n\u003cp>https://twitter.com/AndyPuzder/status/831973151730958336\u003c/p>\n\u003cp>Puzder put out a statement on Wednesday:\u003c/p>\n\u003cblockquote>\u003cp>“After careful consideration and discussions with my family, I am withdrawing my nomination for Secretary of Labor. I am honored to have been considered by President Donald Trump to lead the Department of Labor and put America’s workers and businesses back on a path to sustainable prosperity. I want to thank President Trump for his nomination. I also thank my family and my many supporters—employees, businesses, friends and people who have voiced their praise and hopeful optimism for the policies and new thinking I would have brought to America as Secretary of Labor. While I won’t be serving in the administration, I fully support the President and his highly qualified team.”\u003c/p>\u003c/blockquote>\n\u003cp>Ahead of his scheduled confirmation hearing on Thursday, which had been delayed several times, it became less clear that Puzder had support from his own party, facing pressure to withdraw. Several Republican senators, including Maine’s Susan Collins, Alaska’s Lisa Murkowski, Georgia’s Johnny Isakson and South Carolina’s Tim Scott, signaled trouble by saying they were undecided on Puzder.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>In a statement responding to Puzder’s withdrawal, Scott said, “As revelations regarding paying employees in cash, illegal immigration, and comments regarding some of the American workforce came to light, I developed serious concerns regarding his nomination.” Scott said he informed Senate GOP leadership about his reluctance to support Puzder.\u003c/p>\n\u003cp>Puzder has faced a range of criticisms, from his record running the Hardee’s and Carl’s Jr.’s fast-food chains to old allegations — since retracted — of domestic abuse made by his ex-wife. More recently, Puzder disclosed he employed a housekeeper who was not in the country legally. Labor unions, which had planned to protest his nomination outside the Senate offices where the hearing was to be held, have argued a Puzder-led Labor Department would undermine their efforts to raise the federal minimum wage, expand the eligibility for overtime pay and enforce wage and hour violations, among other things.\u003c/p>\n\u003cp>Puzder, a corporate attorney by training, was first a lawyer for CKE Restaurants, which operates Hardee’s, Carl’s Jr., Green Burrito and Red Burrito restaurants. He helped founder Carl Karcher settle an insider trading case with the Securities and Exchange Commission. Then, after the chain fell into financial trouble following its acquisition of Hardee’s in the late 1990s, Puzder helped turn the company around and in 2000 was named CEO.\u003c/p>\n\u003cp>As CEO, and later as a Trump campaign adviser, Puzder has been outspoken about his views on labor policy, contributing to newspaper opinion pages and on television, discussing issues such as immigration. During the Republican presidential primaries, Puzder advocated creating a path to legal status for unauthorized workers living in the U.S. He endorsed a more moderate “comprehensive immigration reform,” similar to what candidates Jeb Bush and Marco Rubio were proposing at the time.\u003c/p>\n\u003cp>That endorsement won him critics from the right, who want the Trump administration to make good on promises to get tougher on illegal immigration and crack down to deport those in the country illegally.\u003c/p>\n\u003cp>In an opinion piece titled “No to Puzder” in the \u003cem>National Review\u003c/em> published Feb. 15, the conservative magazine wrote: “The case for his confirmation has diminished to the point of disappearing.”\u003c/p>\n\u003cp>The most vocal critics, however, have pointed to his industry’s record at the very department he would lead.\u003c/p>\n\u003cp>For the fast-food industry overall, during the 2016 federal fiscal year, the agency found violations in 86 percent of the 1,300 cases it investigated for wage theft or for unpaid overtime. CKE Restaurants had one of the lowest incidents of reported cases, faring relatively well in an industry that came in for a lot of criticism under the Obama administration.\u003c/p>\n\u003cp>Richard Trumka, president of the AFL-CIO, said Puzder would not have enforced labor laws against his own industry. “How can he possibly go out and defend workers,” he said, arguing the agency should be headed by someone with a history of trying to protect the interests of workers.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003c/p>\n\n",
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"excerpt": "The fast-food CEO faced fierce opposition from labor groups, plus personal controversies. Ultimately, he didn't have support from enough Republican senators.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>Updated at 4:15 p.m. ET\u003c/strong>\u003c/p>\n\u003cp>Fast-food executive Andrew Puzder withdrew his nomination to head the Labor Department on Wednesday as his support on Capitol Hill faltered. Facing criticism from both sides of the aisle, Puzder became the first Trump Cabinet pick whose nomination failed.\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>Puzder put out a statement on Wednesday:\u003c/p>\n\u003cblockquote>\u003cp>“After careful consideration and discussions with my family, I am withdrawing my nomination for Secretary of Labor. I am honored to have been considered by President Donald Trump to lead the Department of Labor and put America’s workers and businesses back on a path to sustainable prosperity. I want to thank President Trump for his nomination. I also thank my family and my many supporters—employees, businesses, friends and people who have voiced their praise and hopeful optimism for the policies and new thinking I would have brought to America as Secretary of Labor. While I won’t be serving in the administration, I fully support the President and his highly qualified team.”\u003c/p>\u003c/blockquote>\n\u003cp>Ahead of his scheduled confirmation hearing on Thursday, which had been delayed several times, it became less clear that Puzder had support from his own party, facing pressure to withdraw. Several Republican senators, including Maine’s Susan Collins, Alaska’s Lisa Murkowski, Georgia’s Johnny Isakson and South Carolina’s Tim Scott, signaled trouble by saying they were undecided on Puzder.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>In a statement responding to Puzder’s withdrawal, Scott said, “As revelations regarding paying employees in cash, illegal immigration, and comments regarding some of the American workforce came to light, I developed serious concerns regarding his nomination.” Scott said he informed Senate GOP leadership about his reluctance to support Puzder.\u003c/p>\n\u003cp>Puzder has faced a range of criticisms, from his record running the Hardee’s and Carl’s Jr.’s fast-food chains to old allegations — since retracted — of domestic abuse made by his ex-wife. More recently, Puzder disclosed he employed a housekeeper who was not in the country legally. Labor unions, which had planned to protest his nomination outside the Senate offices where the hearing was to be held, have argued a Puzder-led Labor Department would undermine their efforts to raise the federal minimum wage, expand the eligibility for overtime pay and enforce wage and hour violations, among other things.\u003c/p>\n\u003cp>Puzder, a corporate attorney by training, was first a lawyer for CKE Restaurants, which operates Hardee’s, Carl’s Jr., Green Burrito and Red Burrito restaurants. He helped founder Carl Karcher settle an insider trading case with the Securities and Exchange Commission. Then, after the chain fell into financial trouble following its acquisition of Hardee’s in the late 1990s, Puzder helped turn the company around and in 2000 was named CEO.\u003c/p>\n\u003cp>As CEO, and later as a Trump campaign adviser, Puzder has been outspoken about his views on labor policy, contributing to newspaper opinion pages and on television, discussing issues such as immigration. During the Republican presidential primaries, Puzder advocated creating a path to legal status for unauthorized workers living in the U.S. He endorsed a more moderate “comprehensive immigration reform,” similar to what candidates Jeb Bush and Marco Rubio were proposing at the time.\u003c/p>\n\u003cp>That endorsement won him critics from the right, who want the Trump administration to make good on promises to get tougher on illegal immigration and crack down to deport those in the country illegally.\u003c/p>\n\u003cp>In an opinion piece titled “No to Puzder” in the \u003cem>National Review\u003c/em> published Feb. 15, the conservative magazine wrote: “The case for his confirmation has diminished to the point of disappearing.”\u003c/p>\n\u003cp>The most vocal critics, however, have pointed to his industry’s record at the very department he would lead.\u003c/p>\n\u003cp>For the fast-food industry overall, during the 2016 federal fiscal year, the agency found violations in 86 percent of the 1,300 cases it investigated for wage theft or for unpaid overtime. CKE Restaurants had one of the lowest incidents of reported cases, faring relatively well in an industry that came in for a lot of criticism under the Obama administration.\u003c/p>\n\u003cp>Richard Trumka, president of the AFL-CIO, said Puzder would not have enforced labor laws against his own industry. “How can he possibly go out and defend workers,” he said, arguing the agency should be headed by someone with a history of trying to protect the interests of workers.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>As the \u003ca href=\"https://ww2.kqed.org/news/2017/02/07/engineers-assess-spillway-problem-at-oroville-dam/\" target=\"_blank\">Oroville Dam crisis\u003c/a> highlights the need for water system improvements, California is putting forward more than $100 billion in infrastructure projects for consideration by the Trump administration.\u003c/p>\n\u003cp>The list was submitted before a damaged spillway at the dam led state officials to \u003ca href=\"https://ww2.kqed.org/news/2017/02/14/lake-oroville-evacuation-order-lifted-water-level-falling/\" target=\"_blank\">evacuate about 180,000 people\u003c/a> last weekend. The evacuation order has since been lifted. On Tuesday the Federal Emergency Management Agency (FEMA) approved federal assistance to support communities affected by the situation at the dam.\u003c/p>\n\u003cp>The Trump administration had asked states to submit projects via the National Governors Association that could possibly be included in a nationwide infrastructure investment plan.\u003c/p>\n\u003cp>California \u003ca href=\"https://www.gov.ca.gov/docs/CA_Infrastructure_Letter_and_Projects_2.7.17.pdf\" target=\"_blank\">submitted 51 projects\u003c/a>, ranging from highway improvements and flood control to rail and transit construction. While improvements to Folsom Dam, located west of Sacramento, were included on the list, projects related to Oroville Dam were not.\u003c/p>\n\u003cp>Brian Kelly, secretary of California's State Transportation Agency, stressed these are not the state’s only infrastructure priorities but are ones that best met the administration’s criteria.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=\"guO5YzNJLPjEJ6tlErRGC4bfxLzmnZEO\"]\u003c/p>\n\u003cp>“We would describe the list as diverse in terms of meeting highway, road (and) public transit safety concerns,\" he said. \"It is a geographically balanced list, and generally all the projects have phases that can start very soon.”\u003c/p>\n\u003cp>California has had an acrimonious relationship with the federal government since President Trump has taken over. But Kelly says he's hopeful that it won't affect whether California's transportation projects ultimately receive any federal funding.\u003c/p>\n\u003cp>\"We have a long history of partnering well with the federal government to get these kinds of projects done,\" he said. \"And we hope and expect that the relationship will continue.\"\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Gov. Jerry Brown and legislative leaders have agreed on an April 6 deadline for any state transportation funding deal to move forward. Brown's budget proposal calls for a $42 billion, 10-year infrastructure investment.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As the \u003ca href=\"https://ww2.kqed.org/news/2017/02/07/engineers-assess-spillway-problem-at-oroville-dam/\" target=\"_blank\">Oroville Dam crisis\u003c/a> highlights the need for water system improvements, California is putting forward more than $100 billion in infrastructure projects for consideration by the Trump administration.\u003c/p>\n\u003cp>The list was submitted before a damaged spillway at the dam led state officials to \u003ca href=\"https://ww2.kqed.org/news/2017/02/14/lake-oroville-evacuation-order-lifted-water-level-falling/\" target=\"_blank\">evacuate about 180,000 people\u003c/a> last weekend. The evacuation order has since been lifted. On Tuesday the Federal Emergency Management Agency (FEMA) approved federal assistance to support communities affected by the situation at the dam.\u003c/p>\n\u003cp>The Trump administration had asked states to submit projects via the National Governors Association that could possibly be included in a nationwide infrastructure investment plan.\u003c/p>\n\u003cp>California \u003ca href=\"https://www.gov.ca.gov/docs/CA_Infrastructure_Letter_and_Projects_2.7.17.pdf\" target=\"_blank\">submitted 51 projects\u003c/a>, ranging from highway improvements and flood control to rail and transit construction. While improvements to Folsom Dam, located west of Sacramento, were included on the list, projects related to Oroville Dam were not.\u003c/p>\n\u003cp>Brian Kelly, secretary of California's State Transportation Agency, stressed these are not the state’s only infrastructure priorities but are ones that best met the administration’s criteria.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Pacific Gas and Electric Co. is cutting some 70 IT jobs and sending them to a contractor based in India. This kind of outsourcing has become commonplace in the IT industry. It has been criticized for years, and there is a lot of talk in Washington, D.C., these days about how to slow it down.\u003c/p>\n\u003cp>PG&E is sending the jobs overseas as part of a larger restructuring plan to cut costs. The San Francisco Business Times first reported on how the offshoring of jobs to India \u003ca href=\"http://www.bizjournals.com/sanfrancisco/news/2017/01/19/exclusive-pg-e-pcg-layoffs-india-tata.html\" target=\"_blank\" rel=\"noopener\">fits into the plan\u003c/a>.\u003c/p>\n\u003cp>“The focus is really on doing the right thing for our customers and the right thing for the business over the long term. That’s what this is about, and it’s what drove the decision,” PG&E spokesman Brian Hertzog said.\u003c/p>\n\u003cp>[soundcloud url=”https://api.soundcloud.com/tracks/306934263″ params=”color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false” width=”100%” height=”166″ iframe=”true” /]\u003c/p>\n\u003cp>PG&E workers are training their replacements, some of whom are here in the U.S. on H-1B work visas. Hertzog says the jobs are related to older IT applications that PG&E wants to phase out. The H-1B workers are going to learn the ropes for the IT jobs and then send those tasks to workers in India who are far cheaper.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“It’s knowledge transfer,” said Paul Almeida, president of the AFL-CIO’s Department for Professional Employees, and a critic of the practice. “They’re just transferring the knowledge of the business to these foreign countries through these outsourcing firms.”\u003c/p>\n\u003cp>The outsourcing firms used by companies like PG&E to offload IT jobs are mostly based in India and get thousands of H-1B visas for their workers. This shouldn’t happen, Almeida said. The visa is designed for high-skilled workers who can’t be found in the U.S., not people doing routine IT work.\u003c/p>\n\u003cp>Almeida said these outsourcers are abusing the H-1B system and undercutting American workers like those at PG&E.\u003c/p>\n\u003cp>“When this was happening 10 years ago, it wasn’t as blatant,” Almeida said. “But it has gone on for so long. It’s become part of the business model.”\u003c/p>\n\u003cp>PG&E is far from the first to use a contractor that depends heavily on H-1B visas. Disney \u003ca href=\"https://www.nytimes.com/2016/10/14/us/judge-says-disney-didnt-violate-visa-laws-in-layoffs.html?_r=0\" target=\"_blank\" rel=\"noopener\">has done it\u003c/a>. So has Toys R Us, other utilities like Southern California Edison, and recently a public university. UC San Francisco is \u003ca href=\"https://ww2.kqed.org/news/2016/12/14/ucsf-losing-some-it-staff-to-outsourcing/\" target=\"_blank\" rel=\"noopener\">outsourcing IT jobs right now\u003c/a>. The contractor there initially brought in a transition team to understand how the university’s IT systems work — some of the workers were on H-1B visas.\u003c/p>\n\u003cp>“Nothing has happened that would deter companies from taking this action,” said Daniel Costa, director of immigration law and policy research at the Economic Policy Institute.\u003c/p>\n\u003cp>Costa said there have been attempts to reform the H-1B visa program. The Department of Labor and Department of Justice investigated Southern California Edison for the use of H-1B visas, but \u003ca href=\"http://www.computerworld.com/article/3035145/it-careers/doj-ends-probe-of-utility-over-it-replacements-no-charges-filed.html\" target=\"_blank\" rel=\"noopener\">neither found wrongdoing\u003c/a>.\u003c/p>\n\u003cp>Costa says those findings are disputable, adding that they encourage companies to outsource with the H-1B.\u003c/p>\n\u003cp>“It’s about the bottom line,” Costa said, “and if companies can do it, they will do it. If the legal framework continues to allow it, then it will continue to happen.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>There has been a lot of anger about this kind of job loss. It’s a theme that President Trump has tapped into, and he’s signaled he plans to change the H-1B in some way. Members of Congress from both sides have introduced reform bills. Meanwhile, the IT industry and workers are anxiously waiting to see what will happen.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“It’s knowledge transfer,” said Paul Almeida, president of the AFL-CIO’s Department for Professional Employees, and a critic of the practice. “They’re just transferring the knowledge of the business to these foreign countries through these outsourcing firms.”\u003c/p>\n\u003cp>The outsourcing firms used by companies like PG&E to offload IT jobs are mostly based in India and get thousands of H-1B visas for their workers. This shouldn’t happen, Almeida said. The visa is designed for high-skilled workers who can’t be found in the U.S., not people doing routine IT work.\u003c/p>\n\u003cp>Almeida said these outsourcers are abusing the H-1B system and undercutting American workers like those at PG&E.\u003c/p>\n\u003cp>“When this was happening 10 years ago, it wasn’t as blatant,” Almeida said. “But it has gone on for so long. It’s become part of the business model.”\u003c/p>\n\u003cp>PG&E is far from the first to use a contractor that depends heavily on H-1B visas. Disney \u003ca href=\"https://www.nytimes.com/2016/10/14/us/judge-says-disney-didnt-violate-visa-laws-in-layoffs.html?_r=0\" target=\"_blank\" rel=\"noopener\">has done it\u003c/a>. So has Toys R Us, other utilities like Southern California Edison, and recently a public university. UC San Francisco is \u003ca href=\"https://ww2.kqed.org/news/2016/12/14/ucsf-losing-some-it-staff-to-outsourcing/\" target=\"_blank\" rel=\"noopener\">outsourcing IT jobs right now\u003c/a>. The contractor there initially brought in a transition team to understand how the university’s IT systems work — some of the workers were on H-1B visas.\u003c/p>\n\u003cp>“Nothing has happened that would deter companies from taking this action,” said Daniel Costa, director of immigration law and policy research at the Economic Policy Institute.\u003c/p>\n\u003cp>Costa said there have been attempts to reform the H-1B visa program. The Department of Labor and Department of Justice investigated Southern California Edison for the use of H-1B visas, but \u003ca href=\"http://www.computerworld.com/article/3035145/it-careers/doj-ends-probe-of-utility-over-it-replacements-no-charges-filed.html\" target=\"_blank\" rel=\"noopener\">neither found wrongdoing\u003c/a>.\u003c/p>\n\u003cp>Costa says those findings are disputable, adding that they encourage companies to outsource with the H-1B.\u003c/p>\n\u003cp>“It’s about the bottom line,” Costa said, “and if companies can do it, they will do it. If the legal framework continues to allow it, then it will continue to happen.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>There has been a lot of anger about this kind of job loss. It’s a theme that President Trump has tapped into, and he’s signaled he plans to change the H-1B in some way. Members of Congress from both sides have introduced reform bills. Meanwhile, the IT industry and workers are anxiously waiting to see what will happen.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>A \u003ca href=\"http://www.ppic.org/main/download.asp\" target=\"_blank\" rel=\"noopener\">new survey\u003c/a> from the Public Policy Institute of California finds overall that 30 percent of adults approve of the way President Trump is doing his job. But those numbers split sharply along party lines, with 72 percent of Republicans approving of the new president and 82 percent of Democrats disapproving.\u003c/p>\n\u003cp>The results demonstrate the state’s diversity, said PPIC president and CEO Mark Baldassare.\u003c/p>\n\u003cp>“Being not just geographically large but large in population, we’re a state that has a lot of unique and different political views within it that are represented,” he said.\u003c/p>\n\u003cp>Gov. Jerry Brown and the Democratic-controlled state Legislature seem to be faring well. The PPIC poll finds 62 percent of Californians approve of the job Brown’s doing — that’s the highest ever recorded by the survey. The Legislature’s approval rating is 57 percent, its highest point since 2001. However, there are deep partisan divides on that issue as well, with Republicans tending to disapprove of both.\u003c/p>\n\u003cfigure id=\"attachment_11309609\" class=\"wp-caption aligncenter\" style=\"max-width: 398px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11309609 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval.jpg\" alt=\"Gov_Leg_Approval\" width=\"398\" height=\"351\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval.jpg 398w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval-160x141.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval-240x212.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval-375x331.jpg 375w\" sizes=\"(max-width: 398px) 100vw, 398px\">\u003cfigcaption class=\"wp-caption-text\">Courtesy of PPIC \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Baldassare says much of the goodwill being shown toward the governor and Legislature is likely related to California’s strong economy in recent years and the state spending money on programs people care about.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“But I also think that there is hope and there is expectation on the part of Californians, at this time when many Californians are troubled about the direction of the country, that our leadership here will be up to the task,” he says.\u003c/p>\n\u003cp>Climate change proved to be another partisan issue, with 65 percent of adults, including 82 percent of Democrats and 62 percent of independents, believing it is a major threat to the country’s well-being. Republicans were more likely to classify climate change as a minor threat or not a threat at all.\u003c/p>\n\u003cfigure id=\"attachment_11309610\" class=\"wp-caption aligncenter\" style=\"max-width: 392px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11309610 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx.jpg\" alt=\"ClimateChange_Gfx\" width=\"392\" height=\"340\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx.jpg 392w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx-160x139.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx-240x208.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx-375x325.jpg 375w\" sizes=\"(max-width: 392px) 100vw, 392px\">\u003cfigcaption class=\"wp-caption-text\">Courtesy of PPIC \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>One area that defied partisan divides was illegal immigration: 85 percent of adults, including 65 percent of Republicans, said undocumented immigrants should be allowed to stay in the country. Baldassare says many in California see immigration as a settled issue.\u003c/p>\n\u003cp>“Most Californians believe that the immigrants in our state are a net benefit to the people and economy of California,” he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Among the top issues that concern Californians were the economy, immigration and education.\u003c/p>\n\n",
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"title": "Survey: 30 Percent of Californians Approve of Trump's Job Performance | KQED",
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"headline": "Survey: 30 Percent of Californians Approve of Trump's Job Performance",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A \u003ca href=\"http://www.ppic.org/main/download.asp\" target=\"_blank\" rel=\"noopener\">new survey\u003c/a> from the Public Policy Institute of California finds overall that 30 percent of adults approve of the way President Trump is doing his job. But those numbers split sharply along party lines, with 72 percent of Republicans approving of the new president and 82 percent of Democrats disapproving.\u003c/p>\n\u003cp>The results demonstrate the state’s diversity, said PPIC president and CEO Mark Baldassare.\u003c/p>\n\u003cp>“Being not just geographically large but large in population, we’re a state that has a lot of unique and different political views within it that are represented,” he said.\u003c/p>\n\u003cp>Gov. Jerry Brown and the Democratic-controlled state Legislature seem to be faring well. The PPIC poll finds 62 percent of Californians approve of the job Brown’s doing — that’s the highest ever recorded by the survey. The Legislature’s approval rating is 57 percent, its highest point since 2001. However, there are deep partisan divides on that issue as well, with Republicans tending to disapprove of both.\u003c/p>\n\u003cfigure id=\"attachment_11309609\" class=\"wp-caption aligncenter\" style=\"max-width: 398px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11309609 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval.jpg\" alt=\"Gov_Leg_Approval\" width=\"398\" height=\"351\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval.jpg 398w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval-160x141.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval-240x212.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/Gov_Leg_Approval-375x331.jpg 375w\" sizes=\"(max-width: 398px) 100vw, 398px\">\u003cfigcaption class=\"wp-caption-text\">Courtesy of PPIC \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Baldassare says much of the goodwill being shown toward the governor and Legislature is likely related to California’s strong economy in recent years and the state spending money on programs people care about.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“But I also think that there is hope and there is expectation on the part of Californians, at this time when many Californians are troubled about the direction of the country, that our leadership here will be up to the task,” he says.\u003c/p>\n\u003cp>Climate change proved to be another partisan issue, with 65 percent of adults, including 82 percent of Democrats and 62 percent of independents, believing it is a major threat to the country’s well-being. Republicans were more likely to classify climate change as a minor threat or not a threat at all.\u003c/p>\n\u003cfigure id=\"attachment_11309610\" class=\"wp-caption aligncenter\" style=\"max-width: 392px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11309610 size-full\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx.jpg\" alt=\"ClimateChange_Gfx\" width=\"392\" height=\"340\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx.jpg 392w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx-160x139.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx-240x208.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/10/2017/02/ClimateChange_Gfx-375x325.jpg 375w\" sizes=\"(max-width: 392px) 100vw, 392px\">\u003cfigcaption class=\"wp-caption-text\">Courtesy of PPIC \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>One area that defied partisan divides was illegal immigration: 85 percent of adults, including 65 percent of Republicans, said undocumented immigrants should be allowed to stay in the country. Baldassare says many in California see immigration as a settled issue.\u003c/p>\n\u003cp>“Most Californians believe that the immigrants in our state are a net benefit to the people and economy of California,” he says.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Among the top issues that concern Californians were the economy, immigration and education.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "What Big Tech's Quarterly Reports Say About the Future of Music",
"headTitle": "What Big Tech’s Quarterly Reports Say About the Future of Music | KQED",
"content": "\u003cp>Our relationships with and access to music lie between rocks and hard places; the rocks that own it, the hard places that distribute it to us. Those relationships are constantly evolving, and to figure out what might come next, we’ve combed through the recent earnings statements of some of the largest record labels and tech companies to reveal how they’re preparing for 2017 and beyond.\u003c/p>\n\u003cp>Musicians and labels have had to adjust to a world where they hold less control, because of the ways we listen now. Where once music distribution centered mostly around record stores, or radio disc jockeys — with whom musicians and labels typically had more symbiotic relationships — they’re now forced to work with companies like Apple, Facebook and Google — for whom music is a cherry, not the sundae — and streaming companies like Spotify, who now hold sway over huge portions of their bank statements.\u003c/p>\n\u003cp>\u003cem>\u003c/em>These tech companies will also control distribution channels that have yet to manifest — like virtual and augmented reality technologies, as well as “high resolution” music, which was mentioned on Warner Music’s earnings call Wednesday and which another major label source told NPR last week is a major priority in this year, and years, to come. (These companies are barred from collusion, but often reach the same conclusions at similar times.) Where tech has the platform, labels — for better and worse — have the content tech needs to make those platforms rich, emotionally and otherwise.\u003c/p>\n\u003cp>Consolidation is expected this year in the streaming industry, as presaged by Sprint’s \u003ca href=\"https://www.nytimes.com/2017/01/23/business/media/tidal-streaming-music-jayz-sprint.html\" target=\"_blank\" rel=\"noopener\">recent purchase\u003c/a> of a third of Tidal, the streaming service that Jay Z purchased in 2015 for $56 million. Pandora also has been tipped as an acquisition target by SiriusXM, though Pandora seems keen to see how its forthcoming Spotify competitor, \u003ca href=\"http://www.billboard.com/articles/news/7604144/pandora-premium-reveal-spotify-competitor-streaming\" target=\"_blank\" rel=\"noopener\">Pandora Premium\u003c/a>, fares before any organizational capitulation.\u003c/p>\n\u003cp>Record companies want as many outlets (think Spotify, or the app \u003ca href=\"https://itunes.apple.com/us/app/musical.ly-your-video-social/id835599320?mt=8\" target=\"_blank\" rel=\"noopener\">Music.ally\u003c/a>) as possible using their music, in part to avoid the market domination that Apple had with the iTunes Store starting in 2004, and in part to keep pricing for their music catalogs competitive. However, tech companies have their own leverage, in the form of billions of “captive” users. The hands wash each other and the tendrils of industry are labyrinthine. (This very long, very dense piece \u003ca href=\"http://www.yalelawjournal.org/article/amazons-antitrust-paradox\" target=\"_blank\" rel=\"noopener\">on antitrust and Amazon\u003c/a> from \u003cem>The Yale Law Journal\u003c/em> is a fascinating breakdown not just of Amazon, but of the many problems facing tech’s primacy, regulation and the laws around it.)\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Over the past week, the companies below have either shared their most recent financial statements (except for Snap Inc., which filed a comprehensive internal breakdown ahead of its $18 billion IPO). These statements (along with tech’s activity over the past year and conversations we’ve had with them) give us a look at the proverbial tea leaves and where we fall between the hard place and the rock.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>SPOTIFY\u003c/strong>\u003c/h5>\n\u003cfigure id=\"attachment_12744698\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/arts/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-800x600.jpg\" alt=\"Facebook founder and CEO Mark Zuckerberg looks on a Peruvian President Pedro Pablo Kuczynski demos a virtual reality headse\" width=\"800\" height=\"600\" class=\"size-medium wp-image-12744698\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-768x576.jpg 768w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-1020x764.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-1920x1439.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-1180x884.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-960x719.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-240x180.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-375x281.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-520x390.jpg 520w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Facebook founder and CEO Mark Zuckerberg looks on a Peruvian President Pedro Pablo Kuczynski demos a virtual reality headse \u003ccite>(Photo: Pablo Parciuncula/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The financials of the world’s most-used streaming service are a notoriously elusive commodity — the company files in the spring, in Luxembourg, in French, and makes it a point not to announce them — but two things over the past day alone and one as-yet-unannounced move indicate where the company’s head is at. Last things first, its partnership with AccuWeather, which \u003ca href=\"http://www.accuweather.com/en/weather-news/accuweather-spotify-launch-climatune-to-produce-playlists-customized-to-weather/70000786\" target=\"_blank\" rel=\"noopener\">yielded a study on how weather affects listening patterns\u003c/a>. Next, two as-yet-unannounced podcasts exclusive to the service, one on music supervision (the work of selecting and licensing songs for television and movies) and the other about hip-hop record executive Chris Lighty. Finally, and most importantly, the \u003ca href=\"http://www.niemanlab.org/2017/02/with-its-new-spotify-bundle-the-new-york-times-is-chasing-a-new-younger-base-of-subscribers/\" target=\"_blank\" rel=\"noopener\">deal it announced Wednesday with the \u003cem>New York Times\u003c/em>\u003c/a>, where new digital subscribers will receive a year of Spotify Premium for free\u003cem>\u003c/em>. Taken together, along with past initiatives like its \u003ca href=\"http://www.tiestoblog.com/spotify-album-burn-by-tiesto/\" target=\"_blank\" rel=\"noopener\">“elastic” running songs\u003c/a>, show the market leader intends to keep pushing the envelope with data — but not with exclusive music content, as founder Daniel Ek has made clear. (Just podcasts, apparently.)\u003cstrong> \u003c/strong>\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>APPLE\u003c/strong>\u003c/h5>\n\u003cp>Last year, Apple Music banked heavily on releases exclusive to it, including Frank Ocean’s highly anticipated \u003cem>Blonde\u003c/em>. However, likely due to an \u003ca href=\"https://www.nytimes.com/2016/08/26/business/media/frank-oceans-blonde-amplifies-discord-in-the-music-business.html\" target=\"_blank\" rel=\"noopener\">inspired bit of contractual gymnastics\u003c/a> on Ocean’s part, exclusives were subsequently \u003ca href=\"https://www.theguardian.com/business/2016/aug/23/universal-streaming-exclusives-frank-ocean-release\" target=\"_blank\" rel=\"noopener\">banned\u003c/a> by Universal Music CEO Lucian Grainge. Despite that, Apple executives \u003ca href=\"http://www.billboard.com/articles/business/7604098/apple-music-20-million-subscribers-eddy-cue-zane-lowe-interview\" target=\"_blank\" rel=\"noopener\">described\u003c/a> platform-specific exclusives like \u003cem>Blonde \u003c/em>as working “really well for everybody concerned — they’re great for the label, they work for the artist and for us.” To that end, it announced that Apple would be the home for \u003cem>Carpool Karaoke\u003c/em>, a massively successful segment that started on \u003cem>The Late Late Show With James Corden\u003c/em>. (Adele’s \u003ca href=\"https://www.youtube.com/watch?v=Nck6BZga7TQ\">turn\u003c/a> has been viewed 145 million times as of this writing.) This will also, serendipitously, benefit Apple TV.\u003c/p>\n\u003cp>Apple’s streaming service, Apple Music, has emerged as Spotify’s primary competitor, but from the outside is financially inextricable from other business segments of the Cupertino tech giant; Apple Music’s reports are bundled with other “services,” like its consumer insurance product AppleCare and Apple Pay. Regardless, it is a success, at least culturally. Apple Music now claims to have \u003ca href=\"http://www.billboard.com/articles/business/7604098/apple-music-20-million-subscribers-eddy-cue-zane-lowe-interview\" target=\"_blank\" rel=\"noopener\">20 million subscribers\u003c/a> since launching in June 2015. Its “services” arm \u003ca href=\"http://www.apple.com/newsroom/2017/01/apple-reports-record-first-quarter-results.html\" target=\"_blank\" rel=\"noopener\">was up\u003c/a> 22 percent between 2015 and 2016, from $19.9 billion to $24.34 billion.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>FACEBOOK\u003c/strong>\u003c/h5>\n\u003cp>As anyone who has seen the traffic report from any digital publisher of articles knows, Facebook’s dominance of media distribution on the web is near total. As such, even small moves make big waves. And, while “music” wasn’t mentioned once in last week’s \u003ca href=\"https://investor.fb.com/investor-events/event-details/2017/Facebook-Q4-2016-Earnings/default.aspx\" target=\"_blank\" rel=\"noopener\">earnings call\u003c/a>, the hiring of Tamara Hrivnak \u003ca href=\"http://www.npr.org/sections/therecord/2017/01/30/512445669/with-new-hire-facebook-looks-to-strengthen-its-relationship-to-music\" target=\"_blank\" rel=\"noopener\">last week\u003c/a> to lead, as she posted on Faceook, “global music strategy and business development,” is a crystal clear indication that it will no longer sit on the sidelines when it comes to music. As \u003ca href=\"http://www.recode.net/2017/1/17/14269406/facebook-live-video-deals-paid\" target=\"_blank\" rel=\"noopener\">\u003cem>Recode\u003c/em> reported\u003c/a>, Facebook plans to focus more on “high-quality” video. It wouldn’t be shocking to see the company partner with video companies (like the music-focused Vevo, for instance) and music rights holders to host longer-form series, like Apple is doing with \u003cem>Carpool Karaoke\u003c/em>.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>GOOGLE\u003c/strong>\u003c/h5>\n\u003cp>YouTube is the world’s largest streaming service, by consumption, but remains the black sheep among those services for what the recording business says are lower-than-fair values for their work on it. A source with knowledge of the negotiations described them as routine, despite unrelenting attacks on it last year from various industry stakeholders over a perceived “value gap” between what YouTube pays for music streams versus what music services like Spotify (sometimes referred to as “pure-play” services) return to the recording industry. As a source pointed out to NPR last week, that value gap has been increasing as more people consume more music on the site. YouTube \u003ca href=\"http://www.billboard.com/articles/business/7525695/lyor-cohen-named-youtube-global-head-of-music\" target=\"_blank\" rel=\"noopener\">brought on\u003c/a> veteran label executive Lyor Cohen in early December as its global Head of Music.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>AMAZON\u003c/strong>\u003c/h5>\n\u003cfigure id=\"attachment_12744699\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/arts/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-800x600.jpg\" alt=\"Shaquille O'Neal laughs as he tries a pair of Snapchat Spectacles during CES on January 5, 2017 in Las Vegas, Nv.\" width=\"800\" height=\"600\" class=\"size-medium wp-image-12744699\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-768x576.jpg 768w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-1020x765.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-1920x1440.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-1180x885.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-960x720.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-240x180.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-375x281.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-520x390.jpg 520w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Shaquille O’Neal laughs as he tries a pair of Snapchat Spectacles during CES on January 5, 2017 in Las Vegas, Nv. \u003ccite>(Photo: Ethan Miller/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>With the success of Echo and the ease of use between it and the company’s own streaming service, Music Unlimited, as well as Amazon’s variegated entertainment investments, Jeff Bezos’ e-commerce giant will continue to aggressively expand.\u003c/p>\n\u003cp>The company launched Amazon Music Unlimited last October, a “full catalog” service aimed at music fans less casual than those wooed by Amazon Prime Music — Prime has a catalog of two million songs, whereas Unlimited includes “tens of millions.”\u003c/p>\n\u003cp>“Prime members engaged with the Prime digital benefits at a voracious rate, more than doubling the number of video, music, and reading activities compared to 2015,” Amazon writes in its \u003ca href=\"http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsother\" target=\"_blank\" rel=\"noopener\">fourth-quarter earnings\u003c/a>, released Feb. 2. The company has had an impressive year with its cultural work, winning two Golden Globes and drawing seven Academy Awards nominations, including a Best Picture nod for \u003cem>Manchester By The Sea\u003c/em>.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>WARNER MUSIC GROUP\u003c/strong>\u003c/h5>\n\u003cp>In its earnings call on Feb. 7 Warner Music — which is owned by Len Blavatnik’s \u003ca href=\"http://www.accessindustries.com/about/\" target=\"_blank\" rel=\"noopener\">Access Industries\u003c/a> — says it made $1 billion from streaming in 2016 (\u003ca href=\"http://www.billboard.com/articles/business/7603792/youtube-1-billion-paid-recording-industry-advertising-2016\" target=\"_blank\" rel=\"noopener\">as much\u003c/a> as YouTube paid the industry worldwide that year), and pointed to new music from Bruno Mars and Ed Sheeran as key to its revenues in the coming year. It also cited, as mentioned above, virtual and augmented reality and high-resolution music as promising new sources of revenue over the coming year and beyond.\u003c/p>\n\u003cp>Warner Music reports it made 8.1 percent more from records than it did over the same period in 2015, with $917 million in total revenue, $311 million of which came from streaming services.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>SONY CORP.\u003c/strong>\u003c/h5>\n\u003cp>Sony Corp., which owns both major label Sony Music (home of Adele and Beyoncé, among many many others) and Sony/ATV, the world’s largest music publishing company (responsible for administering and exploiting compositions, which are legally separate from the sound recordings that record labels, like Sony Music, sell) reported sales down slightly in its third quarter, to $1.49 billion. That the company is about to get a new CEO — Rob Stringer, who is moving up from the reins of Columbia — after many years of being run by a legacy executive will no doubt bring fundamental change to the company. Sony Music’s recorded music revenue dropped 12.8 percent between 2015 and 2016, to $990 million. Of that, $364 million was generated by streaming services. Sony’s music operations were helped this past quarter not by music sales but rather thanks to a video game, \u003cem>Fate/Grand Order\u003c/em>. (That the company folded animation and mobile video games into music is a little strange, and seems to do little more than obfuscate the health of its music operations.)\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>SNAP INC.\u003c/strong>\u003c/h5>\n\u003cp>While the relationship between an amorphous social platform like Snapchat and music may seem tangential, a tech company worth tens of billions and that holds the attention of 150 million young eyes daily, and with a nascent hardware business to boot, will inevitably interact with music, as any youth-oriented concern must. (In fact, founder Evan Spiegel, as the hack of Sony Corp. revealed, had \u003ca href=\"http://www.billboard.com/articles/business/6406613/sony-leaks-snapchat-record-label-vevo\" target=\"_blank\" rel=\"noopener\">expressed interest\u003c/a> in starting his own record label.)\u003c/p>\n\u003cp>In a \u003ca href=\"https://www.sec.gov/Archives/edgar/data/1564408/000119312517029199/d270216ds1.htm\" target=\"_blank\" rel=\"noopener\">118,000-word filing\u003c/a> with the Securities and Exchange Commission, Snap Inc., the recently formed parent company of social media platform Snapchat, explained itself — even its famously inscrutable app — ahead of an initial public offering. Notably, it writes that “Snap Inc. is a camera company,” and defines Snapchat itself as a “camera application.” (The only camera it has released for sale are a pair of well-reviewed “Spectacles,” released surreptitiously in vending machines in Los Angeles and New York.) It is, of course, more than that.\u003c/p>\n\u003cp>Cost of revenue, which includes licensing deals for content from publishers like BuzzFeed as well as failed content partnerships like the one \u003ca href=\"http://www.billboard.com/articles/business/6642187/snapchat-discover-warner-music-yahoo-iheartradio-buzzfeed\" target=\"_blank\" rel=\"noopener\">it cancelled\u003c/a> with Warner Music Group, was about $451 million in 2016. The company as a whole posted a net loss last year of $514 million. Spiegel stands to make $3.7 billion from his 227 million shares once the company goes public — plenty of money to play with.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>(And, not for nothing, the former CEO of Sony Entertainment, parent of Sony Music, is \u003ca href=\"https://www.nytimes.com/2017/01/13/business/media/sony-michael-lynton-to-step-down.html\" target=\"_blank\" rel=\"noopener\">now the chairman\u003c/a> of Snap Inc.’s board.) \u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg decoding=\"async\" src=\"http://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=What+Big+Tech%27s+Quarterly+Reports+Say+About+The+Future+Of+Music&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n",
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"excerpt": "The past week brought a slew of high-level financial filings from tech and music companies — from which we read the tea leaves.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Our relationships with and access to music lie between rocks and hard places; the rocks that own it, the hard places that distribute it to us. Those relationships are constantly evolving, and to figure out what might come next, we’ve combed through the recent earnings statements of some of the largest record labels and tech companies to reveal how they’re preparing for 2017 and beyond.\u003c/p>\n\u003cp>Musicians and labels have had to adjust to a world where they hold less control, because of the ways we listen now. Where once music distribution centered mostly around record stores, or radio disc jockeys — with whom musicians and labels typically had more symbiotic relationships — they’re now forced to work with companies like Apple, Facebook and Google — for whom music is a cherry, not the sundae — and streaming companies like Spotify, who now hold sway over huge portions of their bank statements.\u003c/p>\n\u003cp>\u003cem>\u003c/em>These tech companies will also control distribution channels that have yet to manifest — like virtual and augmented reality technologies, as well as “high resolution” music, which was mentioned on Warner Music’s earnings call Wednesday and which another major label source told NPR last week is a major priority in this year, and years, to come. (These companies are barred from collusion, but often reach the same conclusions at similar times.) Where tech has the platform, labels — for better and worse — have the content tech needs to make those platforms rich, emotionally and otherwise.\u003c/p>\n\u003cp>Consolidation is expected this year in the streaming industry, as presaged by Sprint’s \u003ca href=\"https://www.nytimes.com/2017/01/23/business/media/tidal-streaming-music-jayz-sprint.html\" target=\"_blank\" rel=\"noopener\">recent purchase\u003c/a> of a third of Tidal, the streaming service that Jay Z purchased in 2015 for $56 million. Pandora also has been tipped as an acquisition target by SiriusXM, though Pandora seems keen to see how its forthcoming Spotify competitor, \u003ca href=\"http://www.billboard.com/articles/news/7604144/pandora-premium-reveal-spotify-competitor-streaming\" target=\"_blank\" rel=\"noopener\">Pandora Premium\u003c/a>, fares before any organizational capitulation.\u003c/p>\n\u003cp>Record companies want as many outlets (think Spotify, or the app \u003ca href=\"https://itunes.apple.com/us/app/musical.ly-your-video-social/id835599320?mt=8\" target=\"_blank\" rel=\"noopener\">Music.ally\u003c/a>) as possible using their music, in part to avoid the market domination that Apple had with the iTunes Store starting in 2004, and in part to keep pricing for their music catalogs competitive. However, tech companies have their own leverage, in the form of billions of “captive” users. The hands wash each other and the tendrils of industry are labyrinthine. (This very long, very dense piece \u003ca href=\"http://www.yalelawjournal.org/article/amazons-antitrust-paradox\" target=\"_blank\" rel=\"noopener\">on antitrust and Amazon\u003c/a> from \u003cem>The Yale Law Journal\u003c/em> is a fascinating breakdown not just of Amazon, but of the many problems facing tech’s primacy, regulation and the laws around it.)\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Over the past week, the companies below have either shared their most recent financial statements (except for Snap Inc., which filed a comprehensive internal breakdown ahead of its $18 billion IPO). These statements (along with tech’s activity over the past year and conversations we’ve had with them) give us a look at the proverbial tea leaves and where we fall between the hard place and the rock.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>SPOTIFY\u003c/strong>\u003c/h5>\n\u003cfigure id=\"attachment_12744698\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/arts/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-800x600.jpg\" alt=\"Facebook founder and CEO Mark Zuckerberg looks on a Peruvian President Pedro Pablo Kuczynski demos a virtual reality headse\" width=\"800\" height=\"600\" class=\"size-medium wp-image-12744698\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-768x576.jpg 768w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-1020x764.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-1920x1439.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-1180x884.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-960x719.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-240x180.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-375x281.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b-520x390.jpg 520w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-624350888-22fcf39de9a160a6b44fd8b4d50c0bca0c04430b.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Facebook founder and CEO Mark Zuckerberg looks on a Peruvian President Pedro Pablo Kuczynski demos a virtual reality headse \u003ccite>(Photo: Pablo Parciuncula/AFP/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The financials of the world’s most-used streaming service are a notoriously elusive commodity — the company files in the spring, in Luxembourg, in French, and makes it a point not to announce them — but two things over the past day alone and one as-yet-unannounced move indicate where the company’s head is at. Last things first, its partnership with AccuWeather, which \u003ca href=\"http://www.accuweather.com/en/weather-news/accuweather-spotify-launch-climatune-to-produce-playlists-customized-to-weather/70000786\" target=\"_blank\" rel=\"noopener\">yielded a study on how weather affects listening patterns\u003c/a>. Next, two as-yet-unannounced podcasts exclusive to the service, one on music supervision (the work of selecting and licensing songs for television and movies) and the other about hip-hop record executive Chris Lighty. Finally, and most importantly, the \u003ca href=\"http://www.niemanlab.org/2017/02/with-its-new-spotify-bundle-the-new-york-times-is-chasing-a-new-younger-base-of-subscribers/\" target=\"_blank\" rel=\"noopener\">deal it announced Wednesday with the \u003cem>New York Times\u003c/em>\u003c/a>, where new digital subscribers will receive a year of Spotify Premium for free\u003cem>\u003c/em>. Taken together, along with past initiatives like its \u003ca href=\"http://www.tiestoblog.com/spotify-album-burn-by-tiesto/\" target=\"_blank\" rel=\"noopener\">“elastic” running songs\u003c/a>, show the market leader intends to keep pushing the envelope with data — but not with exclusive music content, as founder Daniel Ek has made clear. (Just podcasts, apparently.)\u003cstrong> \u003c/strong>\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>APPLE\u003c/strong>\u003c/h5>\n\u003cp>Last year, Apple Music banked heavily on releases exclusive to it, including Frank Ocean’s highly anticipated \u003cem>Blonde\u003c/em>. However, likely due to an \u003ca href=\"https://www.nytimes.com/2016/08/26/business/media/frank-oceans-blonde-amplifies-discord-in-the-music-business.html\" target=\"_blank\" rel=\"noopener\">inspired bit of contractual gymnastics\u003c/a> on Ocean’s part, exclusives were subsequently \u003ca href=\"https://www.theguardian.com/business/2016/aug/23/universal-streaming-exclusives-frank-ocean-release\" target=\"_blank\" rel=\"noopener\">banned\u003c/a> by Universal Music CEO Lucian Grainge. Despite that, Apple executives \u003ca href=\"http://www.billboard.com/articles/business/7604098/apple-music-20-million-subscribers-eddy-cue-zane-lowe-interview\" target=\"_blank\" rel=\"noopener\">described\u003c/a> platform-specific exclusives like \u003cem>Blonde \u003c/em>as working “really well for everybody concerned — they’re great for the label, they work for the artist and for us.” To that end, it announced that Apple would be the home for \u003cem>Carpool Karaoke\u003c/em>, a massively successful segment that started on \u003cem>The Late Late Show With James Corden\u003c/em>. (Adele’s \u003ca href=\"https://www.youtube.com/watch?v=Nck6BZga7TQ\">turn\u003c/a> has been viewed 145 million times as of this writing.) This will also, serendipitously, benefit Apple TV.\u003c/p>\n\u003cp>Apple’s streaming service, Apple Music, has emerged as Spotify’s primary competitor, but from the outside is financially inextricable from other business segments of the Cupertino tech giant; Apple Music’s reports are bundled with other “services,” like its consumer insurance product AppleCare and Apple Pay. Regardless, it is a success, at least culturally. Apple Music now claims to have \u003ca href=\"http://www.billboard.com/articles/business/7604098/apple-music-20-million-subscribers-eddy-cue-zane-lowe-interview\" target=\"_blank\" rel=\"noopener\">20 million subscribers\u003c/a> since launching in June 2015. Its “services” arm \u003ca href=\"http://www.apple.com/newsroom/2017/01/apple-reports-record-first-quarter-results.html\" target=\"_blank\" rel=\"noopener\">was up\u003c/a> 22 percent between 2015 and 2016, from $19.9 billion to $24.34 billion.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>FACEBOOK\u003c/strong>\u003c/h5>\n\u003cp>As anyone who has seen the traffic report from any digital publisher of articles knows, Facebook’s dominance of media distribution on the web is near total. As such, even small moves make big waves. And, while “music” wasn’t mentioned once in last week’s \u003ca href=\"https://investor.fb.com/investor-events/event-details/2017/Facebook-Q4-2016-Earnings/default.aspx\" target=\"_blank\" rel=\"noopener\">earnings call\u003c/a>, the hiring of Tamara Hrivnak \u003ca href=\"http://www.npr.org/sections/therecord/2017/01/30/512445669/with-new-hire-facebook-looks-to-strengthen-its-relationship-to-music\" target=\"_blank\" rel=\"noopener\">last week\u003c/a> to lead, as she posted on Faceook, “global music strategy and business development,” is a crystal clear indication that it will no longer sit on the sidelines when it comes to music. As \u003ca href=\"http://www.recode.net/2017/1/17/14269406/facebook-live-video-deals-paid\" target=\"_blank\" rel=\"noopener\">\u003cem>Recode\u003c/em> reported\u003c/a>, Facebook plans to focus more on “high-quality” video. It wouldn’t be shocking to see the company partner with video companies (like the music-focused Vevo, for instance) and music rights holders to host longer-form series, like Apple is doing with \u003cem>Carpool Karaoke\u003c/em>.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>GOOGLE\u003c/strong>\u003c/h5>\n\u003cp>YouTube is the world’s largest streaming service, by consumption, but remains the black sheep among those services for what the recording business says are lower-than-fair values for their work on it. A source with knowledge of the negotiations described them as routine, despite unrelenting attacks on it last year from various industry stakeholders over a perceived “value gap” between what YouTube pays for music streams versus what music services like Spotify (sometimes referred to as “pure-play” services) return to the recording industry. As a source pointed out to NPR last week, that value gap has been increasing as more people consume more music on the site. YouTube \u003ca href=\"http://www.billboard.com/articles/business/7525695/lyor-cohen-named-youtube-global-head-of-music\" target=\"_blank\" rel=\"noopener\">brought on\u003c/a> veteran label executive Lyor Cohen in early December as its global Head of Music.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>AMAZON\u003c/strong>\u003c/h5>\n\u003cfigure id=\"attachment_12744699\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" src=\"https://ww2.kqed.org/arts/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-800x600.jpg\" alt=\"Shaquille O'Neal laughs as he tries a pair of Snapchat Spectacles during CES on January 5, 2017 in Las Vegas, Nv.\" width=\"800\" height=\"600\" class=\"size-medium wp-image-12744699\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-800x600.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-160x120.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-768x576.jpg 768w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-1020x765.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-1920x1440.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-1180x885.jpg 1180w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-960x720.jpg 960w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-240x180.jpg 240w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-375x281.jpg 375w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23-520x390.jpg 520w, https://cdn.kqed.org/wp-content/uploads/sites/2/2017/02/gettyimages-631048340-f1ee259ec4337b6212e350545ee70157995bbf23.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Shaquille O’Neal laughs as he tries a pair of Snapchat Spectacles during CES on January 5, 2017 in Las Vegas, Nv. \u003ccite>(Photo: Ethan Miller/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>With the success of Echo and the ease of use between it and the company’s own streaming service, Music Unlimited, as well as Amazon’s variegated entertainment investments, Jeff Bezos’ e-commerce giant will continue to aggressively expand.\u003c/p>\n\u003cp>The company launched Amazon Music Unlimited last October, a “full catalog” service aimed at music fans less casual than those wooed by Amazon Prime Music — Prime has a catalog of two million songs, whereas Unlimited includes “tens of millions.”\u003c/p>\n\u003cp>“Prime members engaged with the Prime digital benefits at a voracious rate, more than doubling the number of video, music, and reading activities compared to 2015,” Amazon writes in its \u003ca href=\"http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsother\" target=\"_blank\" rel=\"noopener\">fourth-quarter earnings\u003c/a>, released Feb. 2. The company has had an impressive year with its cultural work, winning two Golden Globes and drawing seven Academy Awards nominations, including a Best Picture nod for \u003cem>Manchester By The Sea\u003c/em>.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>WARNER MUSIC GROUP\u003c/strong>\u003c/h5>\n\u003cp>In its earnings call on Feb. 7 Warner Music — which is owned by Len Blavatnik’s \u003ca href=\"http://www.accessindustries.com/about/\" target=\"_blank\" rel=\"noopener\">Access Industries\u003c/a> — says it made $1 billion from streaming in 2016 (\u003ca href=\"http://www.billboard.com/articles/business/7603792/youtube-1-billion-paid-recording-industry-advertising-2016\" target=\"_blank\" rel=\"noopener\">as much\u003c/a> as YouTube paid the industry worldwide that year), and pointed to new music from Bruno Mars and Ed Sheeran as key to its revenues in the coming year. It also cited, as mentioned above, virtual and augmented reality and high-resolution music as promising new sources of revenue over the coming year and beyond.\u003c/p>\n\u003cp>Warner Music reports it made 8.1 percent more from records than it did over the same period in 2015, with $917 million in total revenue, $311 million of which came from streaming services.\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>SONY CORP.\u003c/strong>\u003c/h5>\n\u003cp>Sony Corp., which owns both major label Sony Music (home of Adele and Beyoncé, among many many others) and Sony/ATV, the world’s largest music publishing company (responsible for administering and exploiting compositions, which are legally separate from the sound recordings that record labels, like Sony Music, sell) reported sales down slightly in its third quarter, to $1.49 billion. That the company is about to get a new CEO — Rob Stringer, who is moving up from the reins of Columbia — after many years of being run by a legacy executive will no doubt bring fundamental change to the company. Sony Music’s recorded music revenue dropped 12.8 percent between 2015 and 2016, to $990 million. Of that, $364 million was generated by streaming services. Sony’s music operations were helped this past quarter not by music sales but rather thanks to a video game, \u003cem>Fate/Grand Order\u003c/em>. (That the company folded animation and mobile video games into music is a little strange, and seems to do little more than obfuscate the health of its music operations.)\u003c/p>\n\u003chr>\n\u003ch5>\u003cstrong>SNAP INC.\u003c/strong>\u003c/h5>\n\u003cp>While the relationship between an amorphous social platform like Snapchat and music may seem tangential, a tech company worth tens of billions and that holds the attention of 150 million young eyes daily, and with a nascent hardware business to boot, will inevitably interact with music, as any youth-oriented concern must. (In fact, founder Evan Spiegel, as the hack of Sony Corp. revealed, had \u003ca href=\"http://www.billboard.com/articles/business/6406613/sony-leaks-snapchat-record-label-vevo\" target=\"_blank\" rel=\"noopener\">expressed interest\u003c/a> in starting his own record label.)\u003c/p>\n\u003cp>In a \u003ca href=\"https://www.sec.gov/Archives/edgar/data/1564408/000119312517029199/d270216ds1.htm\" target=\"_blank\" rel=\"noopener\">118,000-word filing\u003c/a> with the Securities and Exchange Commission, Snap Inc., the recently formed parent company of social media platform Snapchat, explained itself — even its famously inscrutable app — ahead of an initial public offering. Notably, it writes that “Snap Inc. is a camera company,” and defines Snapchat itself as a “camera application.” (The only camera it has released for sale are a pair of well-reviewed “Spectacles,” released surreptitiously in vending machines in Los Angeles and New York.) It is, of course, more than that.\u003c/p>\n\u003cp>Cost of revenue, which includes licensing deals for content from publishers like BuzzFeed as well as failed content partnerships like the one \u003ca href=\"http://www.billboard.com/articles/business/6642187/snapchat-discover-warner-music-yahoo-iheartradio-buzzfeed\" target=\"_blank\" rel=\"noopener\">it cancelled\u003c/a> with Warner Music Group, was about $451 million in 2016. The company as a whole posted a net loss last year of $514 million. Spiegel stands to make $3.7 billion from his 227 million shares once the company goes public — plenty of money to play with.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>(And, not for nothing, the former CEO of Sony Entertainment, parent of Sony Music, is \u003ca href=\"https://www.nytimes.com/2017/01/13/business/media/sony-michael-lynton-to-step-down.html\" target=\"_blank\" rel=\"noopener\">now the chairman\u003c/a> of Snap Inc.’s board.) \u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2017 NPR. To see more, visit http://www.npr.org/.\u003cimg decoding=\"async\" src=\"http://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=What+Big+Tech%27s+Quarterly+Reports+Say+About+The+Future+Of+Music&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n\u003c/div>\u003c/p>",
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"disqusTitle": "What Does It Really Mean When Reporters Say ‘Wage Hike’?",
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"content": "\u003cp>You've probably come across the term \"wage hike\" a lot lately, especially since California and 18 other states \u003ca href=\"https://www.nytimes.com/interactive/2017/01/05/business/economy/state-minimum-wages.html\" target=\"_blank\">just increased\u003c/a> the minimum wage.\u003c/p>\n\u003cp>\"Wage hike\" appears in headlines and articles everywhere: on Fox, CBS, NPR, the Wall Street Journal, the New York Times. The list goes on. When journalists use \"wage hike,\" it is often inserted interchangeably with \"wage increase.\" We do it here at KQED -- in our headlines, articles and on the air.\u003c/p>\n\u003cp>[soundcloud url=\"https://api.soundcloud.com/tracks/306757714\" params=\"color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false\" width=\"100%\" height=\"166\" iframe=\"true\" /]\u003c/p>\n\u003cp>I was about to put the little phrase into \u003ca href=\"https://ww2.kqed.org/news/2017/01/03/minimum-wage-goes-up-and-so-does-business-thats-what-this-fast-food-ceo-says-happened/\" target=\"_blank\">a previous story\u003c/a> about a fast food CEO who said rising minimum wages have been great for his business. I had already written \"increase\" about a half-dozen times and was grasping for a synonym. \"Hike\" was the first word that came to mind. But then I thought, why \"hike\"? What does that word actually mean? Why do journalists use it? Why not just write \"increase\"?\u003c/p>\n\u003caside class=\"pullquote alignright\">'Hike is a typical journalist word.' \u003ccite>Katherine Connor Martin, Oxford English Dictionary\u003c/cite>\u003c/aside>\n\u003cp>It is no surprise journalists have fallen in love with the phrase \"wage hike,\" said Katherine Connor Martin, head of U.S. dictionaries at Oxford University Press, the publishers of the Oxford English Dictionary.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\"'Hike' is a typical journalist word because it makes its copy punchier, it helps avoid redundancy and it fits better in a headline,\" Connor Martin said.\u003c/p>\n\u003cp>Originally, \"hike\" had nothing to do with economics. Connor Martin said the word emerged in early 19th century England as a verb for walking vigorously or laboriously. But before long, \"hike\" came to be used transitively with an object to mean moving, pulling or lifting something -- like hiking up a skirt or trousers.\u003c/p>\n\u003cp>The OED documents the first use of \"hike\" in reference to price in 1904, and it’s not used to tell a happy story. A reporter for the Topeka Capital\u003cem> \u003c/em>newspaper wrote that a local store \"hiked\" ice cream prices from 5 to 10 cents. Bad news for ice cream buyers.\u003c/p>\n\u003cfigure id=\"attachment_11293616\" class=\"wp-caption alignright\" style=\"max-width: 194px\">\u003cimg class=\" wp-image-11293616\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/01/Top-10-modifiers-of-Hike.png\" alt=\"These are the top 10 modifiers of hike according to a scan of recent books and journalism.\" width=\"194\" height=\"541\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/01/Top-10-modifiers-of-Hike.png 170w, https://ww2.kqed.org/app/uploads/sites/10/2017/01/Top-10-modifiers-of-Hike-160x446.png 160w\" sizes=\"(max-width: 194px) 100vw, 194px\">\u003cfigcaption class=\"wp-caption-text\">These are the top 10 modifiers of hike according to a scan of recent books and journalism. \u003ccite>(Screenshot of Word Sketch Software)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>To find out how \"hike\" is used today, Connor Martin ran a scan of recent books and journalism to find words \"hike\" is often used to modify. She finds the most common word pairs almost all refer to things people generally do not want. The list includes things like tax hike, rate hike, fare hike, fuel price hike, fee hike and tuition hike, along with wage and pay hikes.\u003c/p>\n\u003cp>Geoff Nunberg, a linguist at the UC Berkeley School of Information, said, “When things hike, there is always the sense that things are being pulled up against their nature.” Using \"hike,\" he said, implies some outside force is yanking up the trousers or skirts or wages.\u003c/p>\n\u003cp>Nunberg said hikes are imposed, they aren’t asked for or welcomed.\u003c/p>\n\u003cp>“You don’t go into your boss’s office and say, 'You know, I’ve been working here eight years, I feel I need a salary hike,'\"\u003cbr>\nNunberg said. \"That implies there’s something unnatural about it.”\u003c/p>\n\u003cp>This is the problem when journalists use \"hike,\" Nunberg said. It suggests raising minimum wages is unnatural, and that is editorializing. He said there is a better word out there: \"increase.\"\u003c/p>\n\u003cp>\"'Increase' is a neutral word,” Nunberg said, “Things can increase for the better or for the worse. When you want to emphasize the positive effects of a raise or increase, you don’t use 'hike.'”\u003c/p>\n\u003cp>Nunberg calls the word \"hike\" particularly pernicious because no one notices it. It blends in to what he calls the “linguistic wallpaper.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He said that the next time I report on the minimum wage, I should stick to the totally neutral word \"increase\" and save \"hike\" for stories about trousers and vigorous walks.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>You've probably come across the term \"wage hike\" a lot lately, especially since California and 18 other states \u003ca href=\"https://www.nytimes.com/interactive/2017/01/05/business/economy/state-minimum-wages.html\" target=\"_blank\">just increased\u003c/a> the minimum wage.\u003c/p>\n\u003cp>\"Wage hike\" appears in headlines and articles everywhere: on Fox, CBS, NPR, the Wall Street Journal, the New York Times. The list goes on. When journalists use \"wage hike,\" it is often inserted interchangeably with \"wage increase.\" We do it here at KQED -- in our headlines, articles and on the air.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003cdiv class='utils-parseShortcode-shortcodes-__shortcodes__shortcodeWrapper'>\n \u003ciframe width='100%' height='166'\n scrolling='no' frameborder='no'\n src='https://w.soundcloud.com/player/?url=https://api.soundcloud.com/tracks/306757714&visual=true&color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false'\n title='https://api.soundcloud.com/tracks/306757714'>\n \u003c/iframe>\n \u003c/div>\u003c/p>\u003cp>\u003c/p>\n\u003cp>I was about to put the little phrase into \u003ca href=\"https://ww2.kqed.org/news/2017/01/03/minimum-wage-goes-up-and-so-does-business-thats-what-this-fast-food-ceo-says-happened/\" target=\"_blank\">a previous story\u003c/a> about a fast food CEO who said rising minimum wages have been great for his business. I had already written \"increase\" about a half-dozen times and was grasping for a synonym. \"Hike\" was the first word that came to mind. But then I thought, why \"hike\"? What does that word actually mean? Why do journalists use it? Why not just write \"increase\"?\u003c/p>\n\u003caside class=\"pullquote alignright\">'Hike is a typical journalist word.' \u003ccite>Katherine Connor Martin, Oxford English Dictionary\u003c/cite>\u003c/aside>\n\u003cp>It is no surprise journalists have fallen in love with the phrase \"wage hike,\" said Katherine Connor Martin, head of U.S. dictionaries at Oxford University Press, the publishers of the Oxford English Dictionary.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"'Hike' is a typical journalist word because it makes its copy punchier, it helps avoid redundancy and it fits better in a headline,\" Connor Martin said.\u003c/p>\n\u003cp>Originally, \"hike\" had nothing to do with economics. Connor Martin said the word emerged in early 19th century England as a verb for walking vigorously or laboriously. But before long, \"hike\" came to be used transitively with an object to mean moving, pulling or lifting something -- like hiking up a skirt or trousers.\u003c/p>\n\u003cp>The OED documents the first use of \"hike\" in reference to price in 1904, and it’s not used to tell a happy story. A reporter for the Topeka Capital\u003cem> \u003c/em>newspaper wrote that a local store \"hiked\" ice cream prices from 5 to 10 cents. Bad news for ice cream buyers.\u003c/p>\n\u003cfigure id=\"attachment_11293616\" class=\"wp-caption alignright\" style=\"max-width: 194px\">\u003cimg class=\" wp-image-11293616\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2017/01/Top-10-modifiers-of-Hike.png\" alt=\"These are the top 10 modifiers of hike according to a scan of recent books and journalism.\" width=\"194\" height=\"541\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2017/01/Top-10-modifiers-of-Hike.png 170w, https://ww2.kqed.org/app/uploads/sites/10/2017/01/Top-10-modifiers-of-Hike-160x446.png 160w\" sizes=\"(max-width: 194px) 100vw, 194px\">\u003cfigcaption class=\"wp-caption-text\">These are the top 10 modifiers of hike according to a scan of recent books and journalism. \u003ccite>(Screenshot of Word Sketch Software)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>To find out how \"hike\" is used today, Connor Martin ran a scan of recent books and journalism to find words \"hike\" is often used to modify. She finds the most common word pairs almost all refer to things people generally do not want. The list includes things like tax hike, rate hike, fare hike, fuel price hike, fee hike and tuition hike, along with wage and pay hikes.\u003c/p>\n\u003cp>Geoff Nunberg, a linguist at the UC Berkeley School of Information, said, “When things hike, there is always the sense that things are being pulled up against their nature.” Using \"hike,\" he said, implies some outside force is yanking up the trousers or skirts or wages.\u003c/p>\n\u003cp>Nunberg said hikes are imposed, they aren’t asked for or welcomed.\u003c/p>\n\u003cp>“You don’t go into your boss’s office and say, 'You know, I’ve been working here eight years, I feel I need a salary hike,'\"\u003cbr>\nNunberg said. \"That implies there’s something unnatural about it.”\u003c/p>\n\u003cp>This is the problem when journalists use \"hike,\" Nunberg said. It suggests raising minimum wages is unnatural, and that is editorializing. He said there is a better word out there: \"increase.\"\u003c/p>\n\u003cp>\"'Increase' is a neutral word,” Nunberg said, “Things can increase for the better or for the worse. When you want to emphasize the positive effects of a raise or increase, you don’t use 'hike.'”\u003c/p>\n\u003cp>Nunberg calls the word \"hike\" particularly pernicious because no one notices it. It blends in to what he calls the “linguistic wallpaper.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>He said that the next time I report on the minimum wage, I should stick to the totally neutral word \"increase\" and save \"hike\" for stories about trousers and vigorous walks.\u003c/p>\n\n\u003c/div>\u003c/p>",
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