News Roundup: Week of Sept. 7 – Sept. 13

Detroit’s Largest Union Withdraws Bing Endorsement

Detroit’s largest union, Michigan Council 25 of the American Federation of State, County and Municipal Employees (AFSCME), has withdrawn its endorsement of Mayor David Bing for reelection. The organization will be supporting Tom Barrow, an accountant, instead.

“This decision is not based exclusively on the position the city has taken at the bargaining table,” said Albert Garrett, president of Michigan Council 25 of AFSCME, at a news conference Friday. “He promised to citizens that he was going to bring change and real solutions to real problems, but we have yet to see any instance where he brought an innovative approach.”

Garrett also noted Bing’s plans to decrease bus routes, privatize tax collections, and contract out the city’s payroll.

CEO of The Bing Group (No. 33 on the B.E. Industrial/Service Companies list with $130 million in revenues), Bing has been battling with the union over his plans to balance the city’s $300 million deficit by laying off more than 1,000 city workers. Bing also is asking workers to accept a 10% pay cut and give up benefits.

Michigan Council 25 represents more than 90,000 public workers across the state. AFSCME International represents 1.4 million public workers nationwide.

A retired NBA player, Bing came into office after defeating interim Mayor Kenneth Cockrel Jr. in May. He now holds court in a city where the local economy is reeling from the struggles of a fallen auto industry, with an unemployment rate at 17.7% in July. He is completing the remainder of Mayor Kwame Kilpatrick’s term after a sex scandal and perjury trial led to Kilpatrick’s resignation.

Along with Barrow, Bing faces write-in candidate Jerroll Sanders, in the Nov. 3 election.

–Janell Hazelwood

Black/White Wage Gap Shrinks, But Remains High

The black/white wage gap shrank by 10.8% in the first two quarters of 2009 compared with a decade ago, according to a new report.

“When the employment market is really good

then the wage gaps narrow, but when we’ve had a very bad labor market like in the last years, then it is not as good for those groups that are disadvantaged,” says David Finegold, dean of the Rutgers’ University’s School of Management and Labor Relations, which released the report Monday.

As of August 2009, the current unemployment rate stands at 9.7% nationally and full-time black and Hispanic workers earn 21.5% and 27.5% less than white workers, respectively. However, the respective gaps were 24.1% and 34.1% a decade ago.

In addition, while the black/white wage gap has increased by 7.9% in the past year, the Hispanic/white wage gap grew by only 0.8%.

“A rise in the real level of the minimum wage–which has been fairly robust over the last few years– can be a big benefit in closing the gap at the lower end of the earnings distribution,” says Finegold. The current federal minimum wage is now $7.25 an hour, or 9% percent higher than in 1999 after adjusting for inflation. Finegold added that enforcement of laws against unfair labor practices, like the Lilly Ledbetter Act of 2009, which fights pay discrimination, will have a beneficial effect on the wage gap for women and minorities.

The report also tracked inflation-adjusted earnings for all wage and salary workers, and included information about worker access to employment-sponsored retirement plans, health insurance, and bonus and performance related pay.

–Marcia Wade Talbert

Ross Flags Inks Deal to Distribute MLK Flags

Dwayne and Maria Ross have successfully accomplished a task few businesses have been able to do: The couple has inked a deal with Intellectual Properties Management Inc., the exclusive licensor of the Martin Luther King Jr. estate, to manufacture and distribute a flag that carries the slain civil rights leader’s image.

“We’re only a handful of organizations licensed to use King’s image,” said Lori Ross, the couple’s sister-in-law and chief operations officer at Ross Flags and Design L.L.C.

The

company initially applied for and was granted a temporary license in 2008, after being rejected years earlier. Having generated $63,000 in revenue after selling 2,000 flags, “IPM extended the licensing agreement for five years because we exceeded expectations,” Lori said.

The company projects revenue to reach $179,000 for its 2009-2010 fiscal year. Flag prices range between $34.99 and $139.99.

While the Rosses are working to get the flags distributed in retailers nationwide, they’ve found success selling the product at African American museums, and historically black colleges and universities, including Howard University and Florida A&M University.

“This flag is a constant visual reminder of Dr. Martin Luther King Jr.’s vision,” said company president, Maria Ross.  If we are to continue moving forward, we must go back and rediscover that Dr. King’s dedication to justice, peace, and brotherhood lies within each of us.”

The company is also looking into inking licensing deals to distribute flags with civil rights leaders of different ethnicities.

— Renita Burns