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News—Review - July 1, 1971,
URBAN
LEAGUE
REPORT
As a community service the News-Review will priht the entire
text of the report and recommendations of the National Urban
League concerning the causes of the events of May li, 1970.
It should be made perfectly clear that the text of this
report has not been edited or otherwise altered in anyway. Since
the report is too lengthy to be printed in one issue, we will print
it in a weekly series. We urge you to read it and carefully consider
the information found therein so that we may begin to work
seriously toward meaningful progress in race relations and human
dignity.
SPECIFIC SUMMARIES
and
RECOMMENDATIONS
EMPLOYMENT
Summary
The Public Sector Local government has been slow in
realizing the need for affirmative programs to recruit and
upgrade minority group members for jobs in which they are
inadequately represented. Likewise, local government has faltered
in taking positive action to remove those restrictive barriers to
minority group employment within their own offices and
departments. This has exacerbated the alienation of black and
other minority citizens from local government, and also has
created a problem of credibility for employers in the public and
private sectors. In many instances, departments of local
government whoencourage equal employment opportunity in the
private sector have not affected the same kind of change within
their own departments, and, in some instances, have more
restrictive barriers and fewer black employees in positions of
responsibility than their private sector counterparts.
It is evident that some change, emanating from “Father Time”,
individual and group initiative has occurred, yet there is still too
much evidence in Augusta of historical patterns in which
minority peoples are the last to be hired and the first to be fired
and are disproportionately represented in the lower echelons of
the labor market.
It was found that major private employers tended to conform
to local discriminatory practices thereby perpetuating racial
discrimination in employment. In terms of hierachy and prestige,
this conformity maintains black persons predominantly in the
lower salaried, unskilled and semi-skilled positions. Furthermore,
it was obvious that the desision to hire “more” minority persons
required formal policy action by top management in a majority
of instances. These decisions were reported to be largely the
result of Federal Civil Rights Legislation and enforcement.
Although some companies reported active attempts to recruit
black college graduates for middle and upper management
positions, those black persons recruited were placed in isolated
positions with specialized task, e.g., an Assistant Personnel
Manager who devotes the majority of time recruiting on black
college campuses. Companies which hired black persons reported
them to be predominantly in semi-skilled and unskilled positions
of low status. Although some reported special programs to recruit
college graduates for management positions, none reported a
structured formal program for recruiting minority persons for
dulled jobs. However, many reported actively recruiting black
females for clerical and secretarial positions. It would seem that
the black non-college student is still subjected to a negatively
structured situation as regards entry into the labor force. His one
best chance of obtaining even the most menial entry level
position is to know another black person within a particular
company. Most companies indicated they relied on other black
employees as major sources of recruitment of black persons.
The Southern Regional Office of the National Urban League,
feels strongly that Augusta has the capacity to act affirmatively in
the area of minority employment and move toward the goal of
■ employing ttvery able-bodied citizerrtn need of a Job.
EMPLOYMENT
Summary
The Public Sector - Local government has been slow in
realizing the need for affirmative programs to recruit and upgrade
minority group members for jobs in which they are inadequately
represented. Upon the realization of this crucial need, likewise,
local government has faltered in taking positive action to remove
those restrictive barriers to minority group employment within
their own officies and departments. This has exacefbated the
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alienation of black and other minority citizens from local
government, and also has created a problem of credibility for
employers in the private sector. In many instances, departments
of local government who encourage equal employment
opportunity in the private sector have been unable, or all too
slow, to affect the same kind of changes within their own
departments, and have more restrictive barriers and fewer
minority employees in positions of responsibility than the private
sector.
Furthermore, from all appearances, commitment to the
resolution of this major problem facing local governments in
Augusta is lacking in both the private and public sectors. Almost
without exception, major efforts at solving the employment
problems of minority persons have largely been coerced by
federal revenues and proscription, (See Federal Manpower
Training Program at end of this section.)
Even with this as a factor, we find at the Federal Army
installation at Fort Gordon, Georgia (a prime civilian employer in
Augusta and Richmond County and surrounding areas) that
much can be improved upon in their minority employment
efforts. This is not to say, as our interviews reflect, that Augusta
1970 is not improved upon Augusta 1960 or 1965. It is evident
that some effort, based on time and individual group initiative,
has provoked change - but yet we still see the evidence of
historical patterns in which minority peoples are the last to be
hired and the first to be fired and are still disproportionately
represented in the lower levels of the labor market. Some
rationalize the need for further training of minorities and relate to
the eductaional deprivation they have suffered. SOme feel that
minorities do not possess initiative or proper attitudes and
apptitudes. Perhaps some of these notions have validity, but
certainly not within the confined and select circle of one ethnic
race. It stands to reason that ambition and desire to achieve can
become a diminishing factor when the door of opportunity is
shut or only partially open.
The Private Sector Racial discrimination in employment in
the private sector of the ec my of Augusta has been given
institutional support. Partly through the operations of private
employment agencies, personnel bureaucracies, and trade unions,
entry of minority citizens into the labor force has been restricted.
The major role of private employment agencies in Augusta is one
of Selectivity rather than service and their activities reflect the
policies and practices of private employers with whom they do
business rather than the requirements of Augusta’s labor force.
This results in the obstruction of the flow of qualified manpower
to job openings which could utilize their skills thereby creating a
situation of under-utilization of minority manpower.
It was found that private employment tended to conform to
local discriminatory practices thereby perpetuating racial
discrimination in employment. In terms of hierachy and prestige,
this conformity maintains black persons predominantly in the
lower salaried, unskilled and semi- skilled positions. Furthermore,
it was obvious that the decision to hire “more” minority persons
required formal policy action by top management in a majority
of instances. These decisions were reported to be largely the
result of Federal Civil Rights Legislation and enforcement.
Although some companies reported active attempts to recruit
black college graduates for middle and upper management
positions, those black persons recruited were placed in isolated
positions with specialized tasks, e.g., an Assistant Personnel
Manager who devotes the majority of time recruiting on black
college campuses. This practice also lends to perpetuate racial
discrimination in employment. Companies which hired black
persons reported them to be predominantly in semi-skilled and
unskilled positions of low status. Although some reported special
programs to recruit college graduates for management positions,
none reported a structured formal program for recruiting
minority persons for hourly positions. However, many reported
actively recruiting black females for clerical and secretarial
positions - another example of conformity to community norms.
It would seem that the black non-college graduate is still
subjected to a negetively structured situation as regards entry into
the labor force. His one best chance of obtaining even the most
menial entry level position is to know another black person
within a particular company. Most companies indicated they
relied on other black employees as major sources of recruitment
of black persons.
The Southern Regional Office, National Urban League, feels
strongly that Augusta, Georgia has the capacity to act
affirmatively in the area of minority employment and move
toward the goal of employing every able-bodied citizen in need of
a job.
MINORITY ENTREPRENEURSHIP
Summary
Black entrepreneurs have long been cognizant of the need for
more capital and technical assistance to compete in the economic
mainstream of Augusta and have taken some promising steps to
meet this need. Os major importance and promising value to the
business community of Augusta is the work of the Progress
Association for Economic Development, Inc. (PAED), and the
newly formed Central Savannah River Business League (CSRBL).
The latter is comprised of over 75 black businessmen. With hopes
of affiliating with the National Business League, the purpose of
the CSRBL is to encourage the development of black-owned
businesses through the provision of technical assistance to
potential black businessmen, especially in the areas of acquisition
of capital, management, and marketing.
As stated in the beginning of this report, minority enterprise or
black business operations in Augusta represent, as a whole, a
meager role in the total economy of the community.
It is evident that many black businessmen are concerned about
strengthening, expanding and developing new and currently
relevant business activities. It is also evident that financial
institutions in the Augusta area, such as C&S Bank through its
community development program, have at least exhibited some
interest in the plight of the minority businessman. However, it is
still glaringly evident that the survival of black entrepreneurship is
dependent on an immense strengthening of its current financial
base as well as long range developmental planning, technical
assistance and the utilization of local, state, regional and national
resources (both technical and financial).
Based on our general findings and specific feelings expressed by
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personal interviews with both black and white businessmen and
other interested parties, we recommend the following items for
immediate implementation:
RECOMMENDATIONS
1. As indicated previously, black businessmen in the Augusta
area are currently forming a Central Savannah River Business
League, which will possibly affiliate with the National Business
League. This endeavor is endorsed as a promising point of
departure, and the National Urban League strongly urges that the
Augusta Chamber of Commerce, the City and County
governments, Augusta business and industry, and other interested
groups commit themselves in public voice and policy to support
the goals and programs of the Central Savannah River Business
League.
2. A large number of corporations in the United States are
aggressively seeking out minority suppliers to add them to those
already competing for orders. Along this line we would
recommend that the Augusta Chamber of Commerce, with the
endorsement of the City and County governments, establish a
commission of distinguished local citizens with proven interest in
minority affairs. This commission should serve as a local technical
assistance and resource arm for the Chamber of Commerce and
the City of Augusta. This commission would initiate its activities
in a visible and innovative manner in Augusta by seeking out
minority suppliers and immediately implementing contracts for
their services with the current needs of Augusta business and
industry. We are suggesting that immediate activity be
implemented on almost a preferential basis in order to
communicate to the entire community that AUGUSTA is doing
more than merely giving lip service to the goal of tapping
heretofore underutilized minority business skills, e.g., hotels and
motels, in all probability, contact to one specific television repair
company which handles all the television repair needs of a given
hotel. We are recommending that a minority businessman be
given an opportunity at this kind of contract. This approach has
been used by many cities to assure an aquitable “piece” of the
local market for minority entrepreneurs.
3. The National Urban League notes that Augusta is fortunate
to have the Progressive Association for Economic Development
which has developed a minority business guide which can be
effectively utilized in any attempt to assess minority businesses
which can furnish some portions of the Augusta and Richmond
County supplier needs.
4. It is also strongly recommended that this panel contract
with PAED for an in-depth audit of the skills, capitalization, and
resources that are currently available in the black business
community to facilitate this program.
5. The National Urban League and the minority business
community of Augusta are cognizant of the vast potential
opportunities available through a committed local industry -
especially in the area of technical assistance and the acquisition of
investment capital. With this in mind, the National Urban League
offers the following suggestions:
a. It is generally recognized that there has been a general
reluctance on the part of black persons to assume the risks of
business ownership. One reason for this reluctance has been the
lack of reliable information in the black community. The
National Urban League, as well as several reputable national
corporations, has experimented successfully with the
establishments of “street academies” in black communities which
are geared to the provision of basic business information to
interested minority persons. With a minimum of investment,
these academies have proven themselves as valuable recruitment
centers for mangement personnel, and have provided a valuable
communication link between the top levels of corporate
management and the black community. Such academies,
furthermore, serve to acquaint management personnel with the
black community, thereby providing valuable educational service
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to the community as a whole. As stated these academies can be
initiated with a minimum of investment due to the fact that they
utilize the wealth of expertise and information available through
corporation volunteers. Generally, these academies have required
intensive public relations and recruitment programs but the
payoffs in terms of information provided to the minority
community and participating corporations make them well worth
the effort. The National Urban League urges that the Augusta
Chamber of Commerce, in cooperation with local industries and
schools, to initiate such an effort.
b. Another program requiring minimal commitment of
investment capital and manpower is the provision of managerial
and technical assistance to minority-owned businesses at their
request. Such assistance should be provided in cooperation with
organizations such as the Central Savannah River Business
League.
c. Under the auspices of the U.S. Department of Commerce
low risk venture capital is available to assist minority businesses
through Project Enterprise. A corporation, group of corporations,
or organizations with a minimum of capitalization can form a
Minority Enterprise Small Business Investment Company
(MESBIC). The Small Business Administration will match the
initial capital two-for-one at a generous rate of interest. This
provides the founding company triple action on the initial capital.
MESBIC’s are totally owned by the founding company and are a
profit-making venture at minimal risk. Efforts need to be made
immediately to encourage the development of MESBIC’s in
Augusta.
d. One of the major needs expressed by black businessmen in
Augusta is “bankability”. The National Urban League notes the
efforts of the Citizens and Southern National Bank to open
business opportunities for the black community. Corporations
can serve as vitally needed advocates for black businessmen by
introducing them to bank officials, especially to those banks
which have had little or no experience with minority business
loans. Large corporations can also guarantee the very much need
long-term financing to minority businesses directly through the
creation of loan funds. In many cases the Small Business
Administration will guarantee as much as 90 per cent of the bank
loan to a new business. Corporations in many instances have
served as the guarantor of the remaining ten per cent.
e. There are many other ways which local industry and
business firms can take affirmative action, such as the letting of
long-term contracts to minority businesses, the provision of
marketing assistance, special product credit programs, and many
more. The National Urban league wishes to emphasize that a
massive commitment on the part of local industry is the crucial
step to opening opportunities to potential minority businessmen.
It is strongly urged that Augusta utilize the industrial option to
the fullest extent possible.
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