How Companies Scrambled to Help Federal Workers
BY rachelhouterman January 28, 2019The atrium at the Barclays Center arena in Brooklyn is typically filled with a stream of excited basketball fans, but last week the scene was entirely different. The cavernous space was stacked with groceries (milk, fruit, and vegetables) and personal-care items (diapers, baby shampoo) for federal workers who have been living without paychecks because of the partial government shutdown. More than 600 federal workers showed up at arena to take advantage of the emergency pop-up shop, organized by the Food Bank for New York City and BSE Global, the company behind Barclays Center and the Nets basketball team, who also handed out free game tickets. While President Trump announced a deal with congressional leaders on Jan. 25 to temporarily reopen the government, workers are not completely out of the woods. The deal would reopen government departments for three weeks while Congress works on a border security package. But if a “fair deal” does not emerge by Feb. 15, Trump said, there could be another government shutdown, the Washington Post reported. Employees of Frontier Airlines brought donated food items inside Orlando International Airport. The food drive was organized by airport workers (Photo by Paul Hennessy/NurPhoto/Sipa USA via AP) Thousands of federal workers across the U.S. have been stretched to the limit, struggling to pay rent and put food on the table since the shutdown on Dec. 24. About 800,000 workers have been affected, more than half of them deemed essential staff and required to work without compensation. Across the U.S., there has been an outpouring of support from businesses and nonprofit organizations to offer essential items, financial relief, and professional advice to federal workers caught in the bind. “We’re here to help our customers, whether they’re a government worker, a government contractor or simply an employee at the diner across from a shuttered federal office,” JPMorgan Chase CEO Jamie Dimon wrote in a note to the bank’s employees. In Brooklyn, some workers came with kids in tow, and some left work to pick up necessities. “In my own household, myself and my husband are federal government workers, so that’s two paychecks not coming in,” said a federal correctional officer, who asked not to be named. “And we have small children at home that we have to care for, child-care expenses to pay while we still go to work and not get compensated. So it’s very stressful.” Making matters worse, some cash-strapped workers haven’t been able to afford transportation to their no-pay jobs. As a remedy, the correctional officer said her managers offered to allow workers to sleep overnight in the facility. A spokesperson for Brooklyn’s Metropolitan Detention Center said that it was just one of several measures put in place to assist the workers. “One avenue is providing interested staff with sleeping accommodations in a secure and empty part of the institution,” the spokesperson said in an email. “At no time are staff sleeping in inmate occupied areas.” Oblio’s restaurant in Denver has been offering free pizza and wine to unpaid federal workers since the government shutdown began (Theo Stroomer/The New York Times/Redux) Thoughts of having a Brooklyn pop-up shop for federal workers first began when the shutdown started, said Margarette Purvis, president and CEO of the Food Bank for NYC. But it quickly became a commitment when they heard that February’s food stamps would be distributed in January instead, leaving families without support for next month. “I think all of us can connect to the power of missing a paycheck,” Purvis said. “They’ve now missed two. These are the people who protect us, who make our government run.” At the Brooklyn event, 600 volunteers showed up over the holiday weekend to pack food bags in preparation for the giveaway. The event also had a staffed table where attendees could learn more information about SNAP (food stamp) enrollment and where and how to file taxes. Bruce McClary, a spokesperson for the National Foundation for Credit Counseling, compared the national outpouring of support to the response to a natural disaster. “Not in my recollection has there been such a universal response,” McClary told USA Today. “The only difference is this is a man-made disaster.” Among other companies and organizations offering help: GoFundMe The crowdfunding company, GoFundMe, found a way to help workers who are struggling to afford groceries or other household necessities during the shutdown. The company created a fundraiser for furloughed federal employees, with a goal of $200,000. The company reached its goal on Tuesday, just three days after it launched the campaign. Funds raised will be distributed to nonprofits across the U.S. that provide workers with hot meals, personal-care necessities, and household items. “I hope the shutdown ends soon,” GoFundMe CEO Rob Solomon wrote in a statement. “In the meantime, please join me and help our fellow Americans by providing some short term relief. This is not about politics. This is lending a helping hand to someone in need.” Hyundai Car payments can be one of the most expensive bills that come due each month. Hyundai announced that it will defer all loan and lease payments for federal workers for one month during the shutdown. “We recognize that there are many federal employees who are Hyundai owners and are not receiving their normal paycheck,” Brian Smith, chief operating officer of Hyundai Motor America, told Business Insider. “Hyundai is a brand that aims to make things better for its customers and this is our way of showing customers ‘we have your back’ during this uncertain time.” Progress Residential In Dallas, Texas, this property-management company is deferring payments on rentals for federal employees. The company is working individually with affected renters on deferring January and February rent payments. Renters must simply show a furlough letter or proof of employment with an affected government agency. “This is a unique nationwide situation, and we view it as an opportunity to demonstrate how deeply we appreciate the work that our civil servants and military men and women do for our country,” Chaz Mueller, Progress Residential’s CEO, told Forbes. “We recognize the hardship that many of our residents may be facing due to the government shutdown and want to alleviate the anxiety those families are facing.” PayPal In light of the shutdown, PayPal set aside $25 million through its PayPal Credit program dedicated to furloughed government workers. Federal employees are eligible for an interest-free cash advance of up to $500 if they are new or existing customers. The program will end when employees receive their first paycheck after the shutdown ends. “Setting up this fund to assist federal workers in their time of need is our way of giving back to the communities we are a part of,” PayPal CEO Dan Schulman told CNBC. “I think it’s really important that CEOs think about their companies as part of the communities they live in—and serve. When you do the right thing, good things come back multifold to you.” Major Telecom Companies T-mobile, AT&T and Verizon announced in early January their plans to help customers affected by the shutdown. Federal employees are able to speak with a customer service representative about rescheduling payments. All three companies will waive late fees. During the shutdown, U.S. Bank has offered several options for its customers. The first is a small low-rate loan between $100 and $6,000, available for customers who any type of U.S. Bank product. JPMorgan Chase When the shutdown occurred in December, Chase bank reached out to customers to offer help, automatically refunding their checking account overdraft and service fees. The bank also activated its Special Care Line (888-356-0023) with a team of specialists who have extended payments on customers’ car loans, provided 90-day relief on their mortgages, and removed minimum payments on their credit cards. In his message to employees, Chase CEO Dimon added that the banking company is committing $1 million to Feeding America and United Way Worldwide to provide meals, financial services, counseling, and other assistance to federal workers and their families in need. U.S. Bank The company launched new low-rate, quick loan for customers needing assistance during the shutdown. The bank is offering mortgage-relief options as well. Affected customers can call its designated government shutdown line to speak with a representative. “U.S. Bank is committed to doing the right thing for our customers,” stated Andy Cecere, the company’s CEO. “We understand the financial pressure that many of our customers who serve our nation are now facing and we’re here to help.” Judging by the response of federal workers in Brooklyn, the helping hand hasn’t been taken for granted. “This is a lot,” the correctional officer said. “It’s heartwarming to know that the city is really coming together to help us federal employees and realize the impact it does have on our families,” she said. “It makes me feel very good and restored my faith in society, because we were losing it for awhile.” New York’s Food Bank has a webpage to help furloughed workers locate their nearest food pantry or soup kitchen. This story was originally published on The Bridge, a website about business in Brooklyn. Rachyl Houterman is a reporting intern at The Bridge and attends school at the University of Wisconsin-Eau Claire. In her free time, she enjoys exploring national parks, hiking, and reading
Why Microsoft Is Spending $500 Million on Affordable Housing
BY rachelhouterman January 21, 2019An affordable-housing crisis has hit many big cities in the U.S., but for tech hubs that have experienced rapid expansion, the shortage has hit much harder. In an almost unprecedented move, Microsoft has stepped up to the problem by pledging $500 million toward affordable-housing development in the place it calls home, the Seattle area. The housing shortage has been a side effect of tech-hub growth from the Bay Area to Brooklyn, where tech companies attract many well-paid workers, who drive up the cost of housing. At the same time, many middle- and low-income workers have seen their income failing to keep pace with the rising cost of living. The crisis has raised expectations that the tech giants need to get involved in responding to it. “This is a big problem. And it’s a problem that is continuing to get worse," wrote Brad Smith, Microsoft's president, and Amy Hood, its chief financial officer, in a corporate blog post last week. "It requires a multifaceted and sustained effort by the entire region to solve. At Microsoft, we’re committed to doing our part to help kick-start new solutions to this crisis.” Microsoft plans to lend $225 million of the total to public and private developers to build middle-class housing, $250 million towards low-incom San Francisco recently passed a bill to tax big employers to help fight homelessness (Photo by Vladimir Kudinov on Unsplash) e housing, and $25 million in philanthropic grants to local organizations that fight homelessness. As the loans are repaid, Microsoft said it would lend it back out again. By spreading the money across many projects, the company hopes that the initiative will produce tens of thousands of units. The new housing isn't intended only for Microsoft workers, but for the community at large. "Of course, we have lots of software engineers, but the reality is that a lot of people work for Microsoft. Cafeteria workers, shuttle drivers. It's is a supply problem, a market failure," Microsoft CEO Satya Nadella told a meeting of journalists last week. Other tech giants have taken different approaches to the problem, sometimes producing intense public-policy debates. Last year, Seattle-based Amazon successfully lobbied against a proposal to tax large businesses to help pay for homeless services and housing, on the grounds that it would put a damper on job creation. But in November, voters in San Francisco approved a similar measure, an initiative supported by Salesforce.com CEO Marc Benioff but opposed by Twitter chief Jack Dorsey. In getting involved in the housing market, Microsoft is stepping in where government has stepped back in recent years, as uban-policy journalist Emily Badger writes in the New York Times: "...The fact that a tech company has to step in to help ensure the development of affordable housing points to a long-building reality nationwide: The federal government has largely retreated from this role. The government spent about three times as much on housing programs in the 1970s as it does today, according to the National Low Income Housing Coalition. ... Over this time, federal resources have increasingly shifted away from subsidizing the construction of affordable housing to subsidizing renters who find housing in the private market. And now most new below-market-rate housing is built not by public agencies, but by nonprofit developers leveraging tax credits." As Microsoft's Smith and Hood wrote in their blog post: “If we’re going to make progress, we’ll all need to work together as a community. We recognize that Microsoft is in a unique position to put the size of its balance sheet behind this effort. But we believe that every individual and every business, large and small, has a responsibility to contribute." Rachyl Houterman is a reporting intern at From Day One and attends journalism school at the University of Wisconsin-Eau Claire. In her free time, she enjoys exploring national parks, hiking, and reading
Risk vs. Reward: When a Brand Tackles a Social Issue
BY rachelhouterman January 16, 2019Traditionally, most consumer brands have avoided taking positions on hot-button social issues, but several have decided lately that the risk is worth the reward, especially when appealing to a particular demographic. Consumer-brand giant Procter & Gamble Co. decided to be a part of the #MeToo conversation this week when it released its new Gillette razor commercial tackling “toxic masculinity.” The commercial takes a spin on Gillette’s longtime tagline “The Best a Man Can Get” by challenging the old saying “boys will be boys” and asking “Is this the best a man can get? Is it? We can’t hide from it. It’s been going on far too long. We can’t laugh it off, making the same old excuses.” The commercial shows examples of bullying and sexual harassment, along with examples of enlightened men intervening in such behavior. A short-film version of the ad is approaching 12 million views on YouTube. The ad has received both praise and backlash, with some customers saying the ad pathologizes men in general. The TV personality Piers Morgan criticized the ad on Twitter, calling it "pathetic" and "a direct consequence of radical feminists who are "driving a war on masculinity." While the ad may alienate some customers, marketing experts said it may appeal to younger audiences, who are attracted to socially responsible companies. Pankaj Bhalla, Gillette brand director for North America, told the Wall Street Journal: “This is an important conversation happening, and as a company that encourages men to be their best, we feel compelled to both address it and take action of our own. We are taking a realistic look at what’s happening today, and aiming to inspire change by acknowledging that the old saying ‘Boys Will Be Boys’ is not an excuse.” P&G has shown a willingness to wade into social controversy with a positive or progressive message, notably with its "Like a Girl" ad campaign for the feminine-care brand Always. Its brand Gillette has reason to be aggressive in getting attention, since it faces competition from upstart competitors like the Dollar Shave Club. "They are smart people, they do so much research," New York marketing expert Rob Baiocco told NBC News about P&G. "They're making a decision on who they're appealing to. Millennials care if a company does good."