COVID-19 and Milwaukee’s Black Community: “There’s No Going Back to Normal”

U.S. Rep. Gwen Moore and Alderwoman Chantia Lewis were joined by Milwaukee community leaders and residents to discuss COVID-19’s disproportionate impact on the Black community 

WATCH THE FULL CONVERSATION HERE. 

MILWAUKEE, Wis. — On the heels of a new report from UW-Milwaukee highlighting how race and patterns of segregation can be linked with the spread of COVID-19, Opportunity Wisconsin and Black Leaders Organizing for Communities (BLOC) hosted a virtual conversation with U.S. Representative Gwen Moore to discuss how COVID-19’s impact has been exacerbated by years of damaging economic policies championed by President Donald Trump and his allies. The conversation, moderated by Milwaukee Alderwoman and Opportunity Wisconsin steering committee member Chantia Lewis, featured Milwaukee residents who have been personally impacted by the pandemic.

“There's no going back to normal,” said Angelina Wyatt, RN, a frontline nurse at a Milwaukee mental health facility. “We have to hold these corporations accountable...to make sure they are meeting the needs of the communities that they serve. As long as we have these racial disparities we’re going to continue to see black and brown communities infected at a higher rate.”  

Opportunity Wisconsin and BLOC are calling on President Trump and his administration to invest in Wisconsin’s communities of color during this economic crisis, instead of pushing policies that primarily bail out the wealthy and well-connected. 

“The PPP [Paycheck Protection Program] was designed to enable businesses, unfortunately like Ruth’s Chris, to be able to pull down millions of dollars because in fact they do hire low wage workers. The program was not intended for publicly traded companies, but that’s the way it was written in the Senate,” said Representative Moore. “The second package did not do anything to improve the PPP. It added more money to take care of the volume of applications that were still in the pipeline. But one thing we were able to do - and a lot of it was focused on the work done by the Congressional Black Caucus and the Progressive Caucus and many members of the Democratic Caucus - we set aside $60 billion of that last funding to be able to be put through community development financial institutions, credit unions, and small community banks.”

While health conditions like diabetes and asthma exist at higher rates among Black people, making Black people more susceptible to the virus, Black Americans are also more likely to hold essential jobs during this crisis, such as health care, grocers, fast-food workers, transit, and postal services. What’s more, many of these same people are facing economic barriers such as stagnant wages and absence of paid leave, as well as food, housing, and transportation insecurity. 

“This work around health justice is not something that is new,” said Rick Banks, BLOC political director and organizer. “The discrimination in healthcare and lack of access that Black people in this city and country face is not new.”

According to UW-Milwaukee’s report, “As of April 8, nearly twice the number of African-American county residents as whites had tested positive for COVID-19. African-Americans represent 27 percent of the county’s population, but they account for 45 percent of confirmed cases. More disturbing still, of the 67 coronavirus-related deaths reported in Milwaukee County as of April 8, 46 of the victims were Black.” 

“I am COVID-19 survivor,”  said Adrienne Lathan. “I was released from the hospital on March 31st, after six days. Four days after being released, I lost my dad. He had many medical issues, but two days before he passed he tested positive for COVID-19. It's been a rough 30 days for me, but the rapport I had with my primary care doctor has been very important and very helpful, and has helped me get through this.’.”

I see in our black community that we don’t have a lot of that, and I thank goodness that I have the medical insurance that I do and the primary care coverage that I do,” said Lathan. 

Earlier this month, Representative Moore joined several of her House and Senate colleagues in introducing the Equitable Data Collection and Disclosure on COVID-19 Act, which would require the Department of Health and Human Services (HHS) to collect and report racial, ethnic, and other demographic data on COVID-19 testing, treatment, and fatality rates.

“I was in the crowd who didn’t think this was serious. But once this hits home and you see people who you know who are grieving for people who they lost through COVID-19, and listening to the experience of health professionals fighting every day,” said Banks. “There are people who have experienced this and will tell you how real this is for them.”

WATCH THE FULL CONVERSATION HERE. 

About Opportunity Wisconsin
Opportunity Wisconsin is a coalition of Wisconsin residents fighting for an economy that works for working people. Through our stories, we’re elevating the real consequences of the destructive economic policies championed by President Trump and his allies these past three years, and showing how they have made Wisconsin’s economy worse off. Join us in demanding our elected officials focus more on growing the economy for middle class folks and expanding opportunity for all Wisconsinites, not just the wealthy few. To learn more about Opportunity Wisconsin, visit OpportunityWisconsin.org or stay connected on Twitter at @OpportunityWI and on Facebook at Facebook.com/OpportunityWI.

About BLOC
BLOC works to invest in our community and engage citizens to build long-term political power, ensure a high quality of life and access to economic opportunity for members of the Black community in Milwaukee and throughout Wisconsin through coordinated political action and empowers Black leaders with the tools, training, and resources needed to organize and guarantee that their issues, concerns, and values are represented at all levels of government. To learn more about BLOC, visit blocbybloc.org or stay connected on Twitter at @BlocbyblocMKE and on Facebook at Facebook.com/blocbyblocmke.

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Statement on President Trump’s Move to Force Meat Processing Plants to Remain Open

“Unfortunately, this is yet another example of President Trump rewarding the wealthy and well-connected while Wisconsin workers are left to suffer.”  

MADISON, Wis. — Today, on the heels of Workers Memorial Day, Opportunity Wisconsin released the following statement as President Donald Trump signed an executive order compelling meat processing plants to remain open, despite hundreds of COVID-19 cases being linked to these types of facilities across Wisconsin. According to the Milwaukee Journal Sentinel, “at least 551 meat and food processing workers at seven Wisconsin factories have tested positive - or the equivalent of nearly 9% of the state’s reported cases.”

“As positive COVID-19 cases continue to skyrocket in Brown County, particularly among frontline plant employees, it’s unconscionable that President Trump would play politics with the health and safety of Wisconsin’s workers,” said Mark Westphal, Opportunity Wisconsin steering committee member and president of the Fox Valley Area Labor Council. “Workers should never be put in a position where they have to choose between their livelihood and their lives. Unfortunately, this is yet another example of President Trump rewarding the wealthy and well-connected while Wisconsin workers are left to suffer.”  

According to the Green Bay Press Gazette, health officials have traced at least 189 positive cases of the virus to the JBS Packerland Plant, located in Brown County. As of April 24, “Brown County now has by far the highest rate of tests coming back positive for COVID-19 among Wisconsin’s 72 counties.” On Sunday, April 26, JBS USA Holdings, Inc. announced the temporary closure of their Green Bay facility. The outbreak is now being investigated by the Occupational Safety and Health Administration (OSHA). 

JBS USA has a long track record of repeatedly putting their workers at risk. With this order, President Trump is giving JBS USA a shield from any liability, even after they caused a significant COVID-19 outbreak in the Green Bay area. To make matters worse, the Trump administration will not be requiring JBS USA or other meat processing facilities to follow basic safety guidelines from the Centers for Disease Control and Prevention (CDC).   

This latest move from President Trump is not surprising. Over the course of his time in office, President Trump has continuously prioritized big corporations like JBS USA, over the Wisconsin workers that make these corporations run, including: 

  • Rolling back regulations protecting meat-industry workers.

  • Giving JBS USA $67 million in bailout funds meant for farmers struggling in the wake of his trade war.

  • Allowing multinational corporations to benefit from changes to the international tax system that will cost American taxpayers $14 billion. JBS USA also benefited from the reduction in the domestic corporate tax rate from 35 percent to 21 percent.

Jarrett Brown, a former employee of a Wisconsin meatpacking plant, shared his thoughts with Opportunity Wisconsin in a video filmed earlier this year, “Everybody who works at the plant, including myself, we’re living paycheck to paycheck. Last year there were like 4 or 5 times where I just didn’t have enough money to pay the rent. The company’s worth billions and billions of dollars. They got that huge tax break from Donald Trump and what did we get? They’re trying to nickel and dime the workers. The decisions being made in Washington, D.C. by Donald Trump are hurting the people of Wisconsin.” 

About Opportunity Wisconsin
Opportunity Wisconsin is a coalition of Wisconsin residents fighting for an economy that works for working people. Through our stories, we’re elevating the real consequences of the destructive economic policies championed by President Trump and his allies these past three years, and showing how they have made Wisconsin’s economy worse off. Join us in demanding our elected officials focus more on growing the economy for middle class folks and expanding opportunity for all Wisconsinites, not just the wealthy few. To learn more about Opportunity Wisconsin, visit OpportunityWisconsin.org or stay connected on Twitter at @OpportunityWI and on Facebook at Facebook.com/OpportunityWI.

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Wisconsin Emergency Physician to VP Pence: America Was Not Prepared. We Are Struggling.

Ahead of the Vice President’s visit to the Badger State, frontline healthcare worker serving rural Wisconsin speaks out about Trump administration’s handling of pandemic and damaging economic policies  

WATCH THE FULL CONVERSATION HERE. 

MADISON, Wis. — Today, ahead of Vice President Mike Pence’s visit to Wisconsin, Opportunity Wisconsin interviewed Dr. Rachel Hughes, an Iowa County emergency medicine physician, about the Trump administration’s handling of COVID-19 and how economic policies championed by President Trump and his allies have exacerbated the pandemic’s impact on Wisconsinites. 

When asked what message she would send to Vice President Pence, Dr. Hughes replied, “We are in this situation where our hospitals are struggling and our healthcare workers are struggling because we were not prepared…[There were] many warning signs that this was going to happen. This was not out of the blue, we had some time to prepare, and we really wasted that time.” 

President Trump has prioritized the interests of the rich and powerful while in office. His tax cuts for the rich and corporations increased inequality and undermined broad-based prosperity. His Wall-Street friendly rules have encouraged corporations to take on destabilizing debt. And he’s refused to invest in public protections like healthcare and disease prevention. Now we’re seeing the results.

“Policies that don't allow folks to build wealth and support families and help them grow, that comes back to hurt us when our society goes through a stressor like we are going through right now,” said Dr. Hughes.

Under the 2017 Tax Cuts and Jobs Act championed by President Trump and his allies, 1 in 4 Wisconsinites will ultimately see a tax increase. By 2027, Wisconsinites with the lowest incomes are expected to pay more in taxes because of the 2017 tax law, while the wealthiest 1 percent of residents will receive nearly $8,000 in savings. 

“There are some really basic principles that have been used in other countries to allow social mobility and how you best care for all of the people at the bottom, who are often working multiple jobs to make ends meet, to assure that they can make a better life for themselves and children,” said Dr. Hughes. “That includes supporting higher wages, family and parental leave, helping people pay for daycare, which are all things that are considered essential and part of the government's responsibility in other countries.” 

In the midst of a pandemic and economic crisis, President Trump slashed the safety net and tightened food stamp requirements, putting 700,000 people at risk of losing food support. He has proposed massive cuts to Social Security, Medicaid and Medicare, making it harder for Wisconisn’s poor and elderly to get necessary healthcare.

“People should never have to decide between their health or their rent and whether they can go to the grocery store this week,” said Dr. Hughes. “A lot of these frontline workers and a lot of Americans that are going to get sick from coronavirus are people who work in the gig economy or people who are owners of small businesses, or people who work hourly wages and may not qualify for benefits from their employer. And then of course when people have to take time off from work to take care of their own health or the health of their family members, they may lose some of those benefits.”

Wages have been stagnant in Wisconsin for decades — adjusted for inflation, the median wage in Wisconsin has only risen 73 cents since 1979. Instead of giving hard-working Wisconsinites a boost, President Trump blocked a federal minimum wage increase, a move that denied more than 800,000 Badger State residents a pay increase and resulted in $3 billion in lost wages. 

Many of these same workers are now facing sky-high debts and are being forced to decide between daily necessities like food and medicine just to survive. In 2017, 22 percent of Wisconsin residents stopped taking the prescription drugs they need because the costs were too high.

WATCH THE FULL CONVERSATION HERE. 

About Opportunity Wisconsin
Opportunity Wisconsin is a coalition of Wisconsin residents fighting for an economy that works for working people. Through our stories, we’re elevating the real consequences of the destructive economic policies championed by President Trump and his allies these past three years, and showing how they have made Wisconsin’s economy worse off. Join us in demanding our elected officials focus more on growing the economy for middle class folks and expanding opportunity for all Wisconsinites, not just the wealthy few. To learn more about Opportunity Wisconsin, visit OpportunityWisconsin.org or stay connected on Twitter at @OpportunityWI and on Facebook at Facebook.com/OpportunityWI.


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Amaad Rivera-Wagner: A little more empathy and leadership to go along with your 'perspective,' Sen. Johnson

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Love brought me to Green Bay and hope is keeping me here. However, Sen. Ron Johnson’s recent op-ed calling for more “perspective” during this coronavirus crisis has left me feeling frustrated and fearful. In his piece, Sen. Johnson urged readers to “evaluate the total societal cost of this awful disease” and reminded us that “death is an unavoidable part of life.” I’d like to see a bit more empathy and leadership, senator.

My husband, William, and I were a seemingly unlikely pair from the beginning — him the son of two generations of Wisconsin dairy farmers and me the son of a teenage single mother from an East Coast manufacturing town. We met for drinks one June evening in western Massachusetts and fell in love over a debate about who is the greatest Green Bay Packers quarterback.

In addition to our mutual love of the Green and Gold, we would also come to learn about our shared passion for public service — him serving as an emergency room physician and me as a progressive policy activist. And thanks to a great opportunity with a Brown County health system, six years later, we found ourselves packing up our belongings and moving into an apartment within a stone’s throw of Lambeau Field.

Green Bay is incredible — a small city with big city ambition. As someone who has always been passionate about uplifting marginalized communities, it was refreshing to see a mayor and a local chamber of commerce pushing to make the city more inclusive and a place where longtime Green Bay families can build on their legacies and new residents have the opportunity to create their own. In most places I’ve lived, these are unlikely allies. But like so many things in Green Bay, the focus here is centered on bringing our communities together, not picking winners and losers. Unfortunately, however, if others in Washington, D.C. follow the lead of Sen. Johnson, that is exactly what is going to start happening in our hospitals and health centers across the Badger State and throughout the country.

As I write this, William is working on the frontlines at the hospital across town. And just like his colleagues across the country, he is already having to ration his personal protective equipment, unsure when they’ll receive a new shipment of face masks and gowns. Meanwhile, health care workers and first responders aren’t the only ones on the front lines. Grocery store clerks, farmers and delivery drivers are risking their own health and safety each day to serve our communities.

Policymakers must support their efforts by providing adequate resources to health care workers and basic protections to low-wage workers. State and local governments are doing their part to provide resources to their residents. Our federal policymakers must be working in lockstep with them, not attempting to justify potentially hundreds of thousand of American deaths in the name of our economy.

The only economic context worth noting at this moment is how policies championed by President Trump and Sen. Johnson were the kindling that allowed this current crisis to burn hotter than it otherwise would have. Between their tax cuts for the wealthy and well-connected, the free passes given to Wall Street to load up on debt and take risks, blocking every attempt to pass paid leave while dismantling the Affordable Care Act, or cutting investments in disease prevention and other public health priorities — they have prioritized the interests of the powerful over working people and families. And now we are all paying the price.

I agree with Sen. Johnson on one thing — perspective matters. It just depends whose you prioritize. My perspective is that of someone suffering through sleepless nights, worrying my husband doesn’t have the resources needed to both save patient lives and protect his own. When William scrubs in, he’s not pondering economic theories through his head in order to determine whether this patient is worth saving. He’s not declaring that death is just a part of life right before he starts a long shift trying to save people’s loved ones. It’d be great if some politicians had the same perspective.

Amaad Rivera-Wagner, Green Bay, is a regional lead with Opportunity Wisconsin, a coalition of Wisconsin residents fighting for an economy that works for working people.


Story originally published by The Cap Times.

Milwaukee Service Industry: “We Won’t Make It Through”

PRESS CONTACTS:
Opportunity Wisconsin: press@opportunitywisconsin.org  
PRAWN: melissa@oddduckrestaurant.com


Small business owners and displaced workers gathered for a virtual conversation to highlight how COVID-19 has impacted the Milwaukee area service industry 

WATCH THE FULL CONVERSATION HERE. 
(Starts around 5:25)

MILWAUKEE, Wis. — On Thursday evening, as U.S. jobless claims soared to 6.6 million and Wisconsin’s unemployment rate was on track to reach record highs, Opportunity Wisconsin and the Progressive Restaurants and Activists of Wisconsin Network (PRAWN) hosted a virtual conversation aimed at elevating the stories of small business owners and displaced workers in the Milwaukee area service industry. 

“A lot of people see our industry as unskilled and unimportant, but with the changes coming from COVID-19, we know that’s not true. We are here to make sure that we are supporting our workers,” said Melissa Bucholz, PRAWN Executive Director, Opportunity Wisconsin Steering Committee Member, and Odd Duck owner. 

According to new data from Navigator Research, 71% say the economy is in bad shape, 59% know someone who’s lost their job due to coronavirus, and by 13 points, Americans believe President Trump’s economic response favors the wealthy and big corporations over middle and working-class people (50-37%).

“We feel like we don't have protections from the federal government,” said Tony Marquez, Owner of La Estacion in Waukesha. “Big corporations have protections, and I hope that the federal government doesn't forget about us because we are a huge engine of this economy. I can’t stress how scary this is - not knowing how we will pay for our restaurant, how we are going to pay our bills. I couldn't sleep.”

“Our business is down 70%. We are holding on, and I want to emphasize that we all did this without knowing that there would be any programs to help us, we did it because it was the right thing to do,” said Bucholz. “Without significant access to programs, we won’t be able to rebuild, and so many others won't make it through.“

The economic crisis sparked by COVID-19 has been fueled by years of President Trump’s economic policies that continue to this day. From the moment he took office, President Trump prioritized the interests of the wealthy and well-connected over those of workers and families — and now Wisconsinites are paying the price.

“We hear a lot about how businesses were going to get a big break with the 2017 tax cuts,” said Becky Cooper Clancy,  Bounce Milwaukee Owner. “If there was a significant change in tax cuts, it wasn’t noticeable for us. When you see large corporations get a tax cut when they don’t even pay taxes at all, it's really frustrating.”

Under the 2017 Tax Cuts and Jobs Act championed by President Trump and his allies, 1 in 4 Wisconsinites will ultimately see a tax increase. By 2027, Wisconsinites with the lowest incomes are expected to pay more in taxes because of the 2017 tax law, while the wealthiest 1 percent of residents will receive nearly $8,000 in savings. 

Wisconsinites are up against staggering unemployment, loss of health care, quarantine, and an infectious disease on the rise — corporate bailouts won’t pay our bills, protect our health, or put food on our tables. We need all the support we can get from lawmakers to ensure our financial security and health. 

“Not only did I have my current job, but I also had a second job to make ends meet, to pay for student loans, and that was my fall back plan and that fell through too,” said Whitney Eagan, an Events Coordinator at a local Milwaukee hotel. “This is so out of our control. It’s nothing that any of us did wrong or a bad business decision anyone made. But in a matter of 24 hours everything that you were working for is just gone. That $1,200 is not going to do too much in the sense of how many bills I'm going to have to pay still.”

As we fight our way out of the current crisis, policymakers need to focus on restructuring our economy in a way that rebalances power toward workers, provides security and stability to the most marginalized workers, and puts systems in place to ensure our economy works for all us — not just the wealthy and well-connected. The next wave of economic stimulus simply cannot be a massive giveaway to big corporations as millions of working people struggle.

“Small businesses are in a very unique situation and moving forward we are going to have to come together and protect ourselves, and hold the federal government accountable,” said Marquez.

About Opportunity Wisconsin
Opportunity Wisconsin is a coalition of Wisconsin residents fighting for an economy that works for working people. Through our stories, we’re elevating the real consequences of the destructive economic policies championed by President Trump and his allies these past three years, and showing how they have made Wisconsin’s economy worse off. Join us in demanding our elected officials focus more on growing the economy for middle-class folks and expanding opportunity for all Wisconsinites, not just the wealthy few. To learn more about Opportunity Wisconsin, visit OpportunityWisconsin.org or stay connected on Twitter at @OpportunityWI and on Facebook at Facebook.com/OpportunityWI.

About PRAWN
The PRAWN (Progressive Restaurants and Activists of Wisconsin Network) follows in the success and tradition of national organizations such as RAISE and ROC United who advocate for the rights of restaurant employees. By focusing on both restaurants and consumers across Wisconsin, they fight for Wisconsin's more than 200,000 restaurant employees by undoing some of the damage that the Wisconsin Restaurant Association has done to both service employees and the restaurant industry. To learn more, head to thePRAWN.org and follow them on Twitter at @NotTheWRA and Facebook at Facebook.com/NotTheWRA.

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Community Leaders and Displaced Workers Call on Congress to Support Main Street Over Wall Street During COVID-19 Response

Working Wisconsinites from across the state gathered for a conference call this morning to highlight the economic impact being felt by Badger State residents

MADISON, Wis. — Today, Anna Landmark and Chantia Lewis, members of the Opportunity Wisconsin steering committee, were joined by displaced workers and small business owners for a press call to discuss how COVID-19 is impacting communities around Wisconsin. 

“I wanted to participate in this forum because it is a unique time in history and it is important to elevate stories so that people can understand what we are really facing,” said Chantia Lewis, Opportunity Wisconsin Steering Committee; My Lewis Company President; and City of Milwaukee Alderwoman. “It's one thing to talk about legislation, but it is not until you talk to everyday people to see what the impact is going to be, and I see the real value in elevating stories especially now.”

On the heels of a record rise in unemployment claims nationwide, and more than 100,000 new unemployment claims filed in Wisconsin in just the past week and a half, participants called on the President and lawmakers in Washington, D.C. to invest in workers and their families during this economic crisis, not push policies that primarily bailout big corporations and CEOs.

“We are concerned, and have concerns about what legislation has been passed and what is going to happen to us,” said Anna Landmark, Opportunity Wisconsin Steering Committee and Landmark Creamery Co-owner/Cheesemaker. “It’s hard to see airlines getting big loans with no requirement to pay those back when I am struggling to get small loans. Things feel really scary right now.”

According to new data from Navigator Research, by 12 points (49%-37%), Americans say that President Trump’s economic policy response to coronavirus favors the wealthy and big corporations, instead of middle and working-class people. Those saying his policies favor the wealthy and big corporations is up 7 points since the beginning of this week.

“When you are chasing the American dream to try to save enough money and you do have 3 months of savings, that is only when you are able to have a level of access. I don't think the policies that we are seeing coming out of Washington give us that access,” said Lewis. “When we talk about a $500 billion bailout for corporations, I am not seeing that focus on the people coming from Washington...That same level of access should be granted to regular citizens who are the heartbeat of our communities. Small businesses are the heartbeat of communities and if we don't support them and those owners of small businesses and the consumers of those businesses...we are hurting our nation.”

In addition, recent Data for Progress research reports that 62% of Americans are concerned about bailouts that don’t also protect payroll and take care of workers.

“This is not something that I ever would have thought would be a possibility. Restaurants and bars in the downtown area have been thriving and these businesses have been gaining momentum so this is really hard to see,” said Andy Gehrke, Manager of Dive in Eau Claire. “I am lucky to be on the management team but I will see a cut in 40-50% of my income. My biggest concern is that all of my hourly employees are being taken care of. The relief package is not nearly enough. When you think about a $1,200 check for each of us, it is not enough.”

Wisconsinites are up against staggering unemployment, loss of health care, quarantine, and an infectious disease on the rise — corporate bailouts won’t pay our bills, protect our health, or put food on our tables. We need all the support we can get from lawmakers to ensure our financial security and health. 

“I am a single mom of 5 and it is just me, everyone depends on me. With the nail salon shut down, there are no funds, and I'm working through my savings,” said Latasha Clark, Owner of Diva Nailz in Milwaukee. “What I am most concerned about is that, as an independent contractor, I may not be eligible for unemployment. That scares me.”

“Right now, we are kind of open. We offer delivery, but our storefront is not open. We are reopening a little bit today because we have a few different funeral services to deliver to - celebrations of life are still happening and people want to honor their loved ones the best they can,” said Jake Lindgren of Avalon Floral in Eau Claire. “I lost my mother in November and I cannot even imagine saying goodbye to a loved one at this time. We are trying to give people light in this darkness.”

About Opportunity Wisconsin
Opportunity Wisconsin is a coalition of Wisconsin residents fighting for an economy that works for working people. Through our stories, we’re elevating the real consequences of the destructive economic policies championed by President Trump and his allies these past three years, and showing how they have made Wisconsin’s economy worse off. Join us in demanding our elected officials focus more on growing the economy for middle-class folks and expanding opportunity for all Wisconsinites, not just the wealthy few. To learn more about Opportunity Wisconsin, visit OpportunityWisconsin.org or stay connected on Twitter at @OpportunityWI and on Facebook at Facebook.com/OpportunityWI.

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Sharing solidarity long-distance

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Former Shopko workers relate the impact of retailer's 2019 shutdown in virtual town hall



Just a day after Wisconsin banned face-to-face meetings of 10 or more people to help curb the spread of the virus responsible for COVID-19, more than 75 people gathered in cyberspace to mark a grim anniversary: Wednesday, March 18, one year to the day since the bankrupt Shopko retail chain announced it would close all its stores by the middle of the year in 2019.

The Wednesday evening gathering was intended to be an in-person town hall, to be held in a community center in the Green Bay suburb of Ashwaubenon. It was organized by three groups — Opportunity Wisconsin, which mobilizes state residents in opposition to the Trump administration’s economic policies and in support of policies to help the middle class;  United for Respect, a nonprofit, multiracial organization promoting an economy that respects working people; and the Town Hall Project, a nonprofit that aims to foster dialogue between Americans and elected officials to advance democracy.

Organizers decided to pivot to an online get-together about 10 days ago — before public health directives curbing large gatherings to combat the spread of the illness caused by the coronavirus in Wisconsin.

“We were initially very eager to host this event in Ashwaubenon, directly across the street from a now-deserted Shopko store,” says the session moderator, Mark Westphal, president of the Fox Valley Labor Council and a member of Opportunity Wisconsin’s steering committee. “We knew hosting a virtual town hall would allow us to reach so many more concerned citizens, but what we didn’t anticipate was the level of support and encouragement that came along with the conversation.”

For the organizers and for the participating former Shopko employees, the chain’s demise exemplifies a pattern of destruction in the retail industry by private equity investors like Sun Capital Partners, the firm that bought out publicly-held Shopko in 2005 and took it private. The transaction saddled Shopko with debt; Sun Capital extracted millions of dollars in fees over the next decade and a half, then liquidated it in bankruptcy court, eliminating 2,500 jobs in Wisconsin and 22,800 jobs nationwide. The workers who remained found themselves last in line as the company settled its debts.

The Shopko bankruptcy happened long before the current COVID-19 crisis, but organizers see larger lessons as talk in government turns to possible corporate bailouts in the face of economic turmoil.

“Opportunity Wisconsin has been squarely focused on growing the economy for low and middle-class folks and expanding opportunity for all Wisconsinites, not just the wealthy few,” Westphal tells the Wisconsin Examiner. “We’ve seen how President Trump’s tax cuts have lined the pockets of the well-connected, while one in four Wisconsinites will ultimately see a tax increase. We’re demanding that any proposed emergency economic relief put working and middle-class families first, instead of prioritizing the profits of Wall Street and big corporations.”

The former Shopko employees participating in Wednesday night’s virtual town hall were bolstered by a pair of public officials who clicked in to offer their support: Wisconsin State Treasurer Sarah Godlewski and Sen. Tammy Baldwin (D-Wis.). Baldwin, along with her staff, has been working with a final wave of displaced Shopko workers who didn’t receive severance pay they say they were promised in return for staying on through the liquidation process and postponing their search for new jobs.

The Shopko story

Godlewski, who grew up in Eau Claire, described how Shopko for decades was woven into the fabric of small-town Wisconsin. “Shopko was at the heart of our community,” she said. “As a kid my mom would ask me if I needed anything for school. I would mention different supplies, and she would say, ‘OK, go put it on your Shopko list.’ It was never a shopping list, it was always a Shopko list.”

Wisconsin State Treasurer Sarah Godlewski speaks as part of a virtual town hall meeting Wednesday night conducted to discuss the experience of workers who lost their jobs when Shopko went out of business in 2019. (Photo by Erik Gunn)

The bond communities had with the store made the chain’s demise “absolutely heartbreaking,” said Godlewski. “What Sun Capital Partners did to Shopko was completely reckless. It was reckless to our communities, it was reckless to their employees, it was reckless to Wisconsin, and it was reckless to our economy.”

Baldwin outlined Sun Capital’s actions. “The private equity owners loaded up the company with debt, and they used that to pay themselves additional hundreds of millions of dollars in fees and dividends,” she said. “These fees came at the expense of an investment in Shopko that it needed in order to stay competitive.”

The owners also sold Shopko’s real estate — the stores and the land on which they stood — then leased them back. “But we didn’t see the Shopko enterprise benefit from that sale,” Baldwin said. “Instead the executives and the investors are the ones who profited off of that looting.”

When Shopko filed for bankruptcy and ultimately liquidated after no buyers emerged to take over the company, “the private equity owners walked away relatively unscathed,” she said.

Sen. Tammy Baldwin (D-Wis.) speaks as part of a virtual town hall meeting Wednesday night conducted to discuss the experience of workers who lost their jobs when Shopko went out of business in 2019. (Photo by Erik Gunn)

Baldwin sees a bigger story in Shopko’s collapse. “This is fundamentally about the rules of our economy — how does our economy reward work versus wealth,” Baldwin said. “Who owns a company, and what rights and responsibilities do owners have to their workers and their community? Why were the private equity owners of Shopko able to enjoy all the benefits of owning a company, but none of the responsibility? Why were the workers who created the profits for the company and dedicated, in some cases decades of their lives to serving its customers, left with nothing after the bankruptcy?”

Those outcomes result from the current rules, Baldwin said. “If we are dissatisfied with these answers, which I think we can all agree on, it is up to us to change those rules.”

One way to change those rules, she offered, is the “Stop Wall Street Looting Act of 2019,” legislation she introduced last summer along with Sens. Elizabeth Warren (D-Mass.) and Sherrod Brown (D-Ohio). The bill would make private equity owners liable for the debt that they force a company to take on in an acquisition. “They will likely engage in far less risky behavior if they know they’re going to be responsible if the company goes bankrupt,” Baldwin said.

The act would also ban transfers from the acquired company to the private equity owners in the first two years of ownership, to stop them “from looting the company and starving it of investment.” In the event of bankruptcy, the bill “moves workers to the front of the line” and limits executive compensation.

In a presentation that followed Baldwin, United for Respect organizer Maria Garza described private-equity takeovers like Shopko’s as part of a recurring pattern, echoed in the stories of retailers like Sears and Toys R Us, but also surfacing in other industries, from health care to the media.

Front-line accounts

Then came the personal stories — three displaced workers, addressing the dozens gathered via telephone and computer screens to listen to them.

After working for nearly 12 years at a Shopko store in Grant County, Trina McInerney said, “Sun Capital left me jobless, with nothing.” She is currently employed in a temporary position that she hopes will become permanent, but McInerney has avoided retail work since losing her job at Shopko nine months ago with no severance pay. “The devastation was real, the heartbreak was real, having no income, losing your work family, losing your work dignity — all real,” McInerney said, tears palpable as they crept into her voice.

Jim Jordan, of Howard, near Green Bay, worked for more than 30 years at the company until Shopko’s closing forced him into retiring sooner than he had planned. Because he and his wife, Connie, had money saved and they had health insurance through her job as a public school employee, “it wasn’t as traumatic as it could have been,” he said.

But Connie Jordan pointed out that over the decades, her husband’s information technology job had meant that “he gave a lot — weekends, holiday nights. … He gave, and so many other people gave, and when Sun Capital decided to end all that, there were people that walked away with money — but it wasn’t Jim. It wasn’t his coworkers. And it wasn’t the people that we’ve known for many, many years at Shopko.”

Listeners following along added to the discussion in text form, holding a group chat in the same online platform. Former workers shared their stories and offered sympathy to the main speakers. Some checked in from out of state. “I still struggle with the loss of Shopko,” wrote a former employee from South Dakota. “I’m glad I joined this.”

The number of people who tuned in from all over was striking, says Westphal, the moderator. “It was a great reminder of the power of community, but also a sobering reminder of just who will continue to suffer if Wisconsin workers are left hanging in the coming weeks and months.”

On the main screen, the final speaker was Linda Parker of Columbus, Wis. Parker was a multi-store manager for Payless Shoes, which had a mix of freestanding stores and store departments inside Shopko stores. She, too, got no severance pay, she said, and while her husband is retired, “currently I’m doing three part-time jobs — they don’t come up to what I was earning at Payless.”

The losses were economic, but also social,  said Parker, calling her coworkers in her former job a “second family” because “you spend all your waking hours with these folks.”

She’s been unable to find full-time work, she said, and the part-time jobs lack benefits. And then she mentioned, just in passing, the very reason that everyone on this evening was gathered in the safety of their homes, connected through the internet instead of face to face: COVID-19.

“I didn’t just lose my job, my work family, I also lost my health insurance,” Parker said. “Now that we’ve got this big bubble over everybody’s head, it’s that much more of an anxious situation.”

She didn’t stop there, however. Parker echoed the rallying cries of those who had spoken before her.

“Holding Wall Street and private equity and hedge fund billionaires accountable is crucial,” she said. “It’s just going to get worse. They feel no empathy for us, they feel no guilt over what they’re doing. … It’s time to take action and do something to stop these horrible business practices.”


Story originally published by Wisconsin Examiner.

Senator Baldwin, Treasurer Godlewski Join Former Shopko Workers for Virtual Town Hall Highlighting Wall Street’s Detrimental Impact on Wisconsin’s Economy

FOR IMMEDIATE RELEASE
Thursday, March 19, 2020

PRESS CONTACT:
press@opportunitywisconsin.org  
taylor@united4respect.org   

WATCH A RECORDING OF THE “SHOPKO SPEAKS” VIRTUAL TOWN HALL 

Critical conversation fell on the eve of new weekly jobless claims figures, which surged to their highest total since September 2017  

GREEN BAY, Wis. — On Wednesday evening, marking the 1-year anniversary of Shopko announcing the closure of all remaining stores, U.S. Senator Tammy Baldwin and Wisconsin State Treasurer Sarah Godlewski joined former Shopko employees and community leaders to discuss how the Wisconsin-based retailer went from employing nearly 2,500 people to bankrupt.

The “Shopko Speaks” virtual town hall, hosted by Opportunity Wisconsin, United for Respect, and Town Hall Project, was originally scheduled to take place in person in Ashwaubenon, Wisconsin—in the shadows of a now-vacant Shopko store. Due to the growing COVID-19 pandemic, organizers moved the discussion online, allowing for broader reach and increased participation in the important discussion.  

On March 18, 2019, Shopko announced it would be shuttering all its remaining Wisconsin stores by June. One year later, families and communities across the state are fully realizing the impact the company’s closure has had on their local economy.

Participants discussed how private equity firm Sun Capital Partners put profits over Shopko employees and how legislative solutions, like the Stop Wall Street Looting Act, can help level the playing field and hold Wall Street and lawmakers accountable. 

“I could tell things weren't going well and vendors stopped showing up. Still today, it was one of the worst days of my life,” said Trina McInerney, who worked for Shopko in Grant County for almost 12 years. “Everyone was like family, and the stress from losing my job was sometimes too hard to bear. I felt like the rug was pulled out from underneath me. I did not receive severance or bonus...I spent a while wondering where I'm going to find money for food, gas, and insurance while Sun Capital execs walked away with billions. I lost my dignity and my ability to support my family.” 

Like many other struggling retail companies at the time, Shopko was taken over by a Wall Street private equity firm: Sun Capital Partners. Instead of keeping the company afloat, Sun Capital ultimately led Shopko to declare bankruptcy in January 2019. And just a few months later, Shopko announced the closure of all remaining stores.

“This is fundamentally about the rules of our economy and does our economy reward work vs wealth,” said Senator Baldwin, sponsor of the Stop Wall Street Looting Act. “We know it rewards wealth. Why were the private equity owners of Shopko able to enjoy all the benefits of owning a company, but none of the responsibilities? Why were the workers who dedicated decades of their lives left with nothing after the bankruptcy? These are the current rules of the economy in the United States. If we are dissatisfied with these answers, it is up to us to change those rules.”

All of Shopko’s stores are now closed, resulting in almost 2,500 jobs lost for Wisconsinites. Ultimately, 52 stores and a support center closed in Wisconsin. What’s more, it’s estimated that the private equity takeover of Shopko resulted in 22,800 jobs lost nationwide.

Industry observers point to President Trump’s 2017 tax law, which increased the value of these vulture capitalist firms by between 3-17%, on average. The President’s 2018 Bank Lobbyist Act also rolled back consumer protections that were established in the Dodd-Frank Act while allowing banks to engage in the kind of risky behavior that caused the 2008 financial crash.

“When I was a kid, I would always ask for school supplies and my mom would always say, put it on your Shopko list,” said Treasurer Godlewski. “What Shopko did to our state was reckless—to our employees, to Wisconsin, to our economy. Private equity should never have been allowed to put all of this debt into our economy and on the backs of our working people. We need to hold these firms accountable and provide the mechanisms to do that and make sure that the employees get the severance and retirement that they've worked for for decades. There are so many things that we can put in place to actually help working people.” 

“My first job ever was at Shopko—a Wisconsin-based retail chain that supported hundreds of good paying jobs across our state and gave working families the opportunity to earn a fair wage,” said U.S. Representative Mark Pocan, who introduced the Stop Wall Street Looting Act in the House of Representatives. “Private equity firm Sun Capital Partners came in with promises of supporting those jobs, but then drove Shopko into financial ruin and liquidated it. The executives at Sun Capital ran away with hefty profits while Wisconsin workers were laid off and abandoned. Unfortunately, Wisconsin workers aren’t alone. Private equity has wreaked havoc across industries nationwide and left working families jobless and hopeless. We cannot let these predatory firms destroy our communities any longer.”

While Wisconsinites and people nationwide were fighting to make ends meet in the face of losing their jobs, Sun Capital and the other investors made $170 million in the form of dividend payments from Shopko by the time it declared bankruptcy, in addition to allegedly avoiding $8 million in sales tax owed to Wisconsin between 2013 and 2016.

“Retiring by choice is great. But for those people that maybe didn't have that choice, like Jim, it's not,” said Connie Jordan of her husband, Jim, who spent over three decades working for Shopko in Green Bay before being laid off 3 different times. “We went through a lot in the 30 years at Shopko, and Jim gave a lot. Anyone that works in retail knows, you give a lot. When Sun Capital ended it, there were people that walked away with money, but it wasn't Jim and it wasn't his coworkers. The lack of respect for that employee devotion sickens me.”

Read more of Jim Jordan’s story in the Capital Times. 

“Losing your job through no fault of your own ruins your credit, your retirement, and your self confidence,” said Linda Parker of Columbus, Wisconsin. Parker worked at Payless ShoeSource for over 21 years. “Holding Wall Street and private equity accountable is crucial. It’s just going to get worse. They feel no empathy or guilt and it's shocking. When I first learned that the [Payless] stores were closing it was devastating, but at least we had hopes that we were going to get our severance, but that didn’t happen either. We felt there was no hope.” 

About Opportunity Wisconsin
Opportunity Wisconsin is a coalition of Wisconsin residents fighting for an economy that works for working people. Through our stories, we’re elevating the real consequences of the destructive economic policies championed by President Trump and his allies these past three years, and showing how they have made Wisconsin’s economy worse off. Join us in demanding our elected officials focus more on growing the economy for middle class folks and expanding opportunity for all Wisconsinites, not just the wealthy few. To learn more about Opportunity Wisconsin, visit OpportunityWisconsin.org or stay connected on Twitter at @OpportunityWI and on Facebook at Facebook.com/OpportunityWI.

About United for Respect
United for Respect (UFR) is a national non-profit organization. UFR is a multiracial movement of working people throughout the U.S. advancing a vision of an economy where our work is respected and our humanity recognized. UFR is not a labor union and does not intend or seek to represent retail employees over terms and conditions of employment, or to bargain with retail employers.

About Town Hall Project
Town Hall Project (THP) is a national non-profit organization. THP works to grow the culture of open dialogue between Americans and their elected representatives for the strength and transparency of our democracy. 

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