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21st February 2025
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THE HOT STORY
Federal workers were fired 'based on your performance'
Interviews and documents seen by Reuters suggest that workers who were fired from federal agencies for alleged poor performance as part of U.S. President Donald Trump's government overhaul received excellent performance reviews before being let go. A dozen workers who were fired from seven government agencies have told Reuters that they received letters that cited their performance as a reason for their dismissal. All twelve said they had received high performance reviews in recent weeks or months. "The Agency finds, based on your performance, that you have not demonstrated that your further employment at the Agency would be in the public interest," one of the letters said. Anna Kelly, a White House spokesperson, said: "President Trump and his administration are delivering on the American people’s mandate to eliminate wasteful spending and make federal agencies more efficient, which includes removing probationary employees who are not mission critical."
WORKPLACE TRENDS
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HEALTH & WELLBEING
Spending all day on your feet can take its toll
An Associated Press report takes a look at how spending all day standing can take a toll on a worker’s body, and considers whether spending all day on your feet at work could be an occupational hazard. A review by the National Institute for Occupational Safety and Health found that standing for long periods can precipitate lower back pain, fatigue, muscle pain and leg swelling, and it can also heighten the risk of cardiovascular problems and pregnancy complications. Unionized workers at the Barnes & Nobles store in Manhattan's Union Square have made access to chairs and the right to sit down under certain conditions a part of their negotiations for their first contract.
CULTURE
Southwest layoffs could undermine 'worker-first' culture
Reuters reports that recent layoffs at Southwest Airlines - the first in the carrier's 54-year history - risk undermining a company culture of putting employees first that differentiated it from rivals and ensured a loyal fan base. Conor Cunningham, a travel and transport analyst at Melius Research, said the layoffs go against the company's long-built culture, which he described as "the special sauce that makes everything possible." Doug Parker, the former CEO of rival American Airlines, last year said Southwest enjoyed a competitive advantage with airline customers because of its culture. 
LEGAL
Labor groups challenge mass firings
Several labor groups have filed a lawsuit against the Trump administration, alleging the illegal mass firing of tens of thousands of probationary employees. The complaint, lodged in San Francisco federal court, claims that the Office of Personnel Management (OPM) overstepped its authority by directing federal agencies to terminate employees en masse on February 13, purportedly for performance reasons. The groups argue that only Congress has the power to authorize such actions. The lawsuit states: "OPM . . . has perpetrated one of the most massive employment frauds in the history of this country." The plaintiffs, including the American Federation of Government Employees and the United Nurses Associations of California, are seeking to overturn the directive and reinstate the affected employees.
Fired federal workers face uphill legal battle
U.S. government employees facing job losses due to President Donald Trump's ongoing federal workforce purge will encounter significant challenges in seeking legal recourse. The primary avenue for contesting firings is the Merit Systems Protection Board, whose work has been hindered by Trump's attempts to exert control over independent agencies. Many employees may hesitate to pursue legal action due to the complex process and associated costs. "It will take lots of encouragement to get these people to challenge their terminations," observed Michael Fallings, an Austin, Texas-based lawyer who represents federal employees. The board's rulings favor employees in only 2.4% of cases, and the lengthy appeals process often results in workers finding new employment before their cases are resolved. Trump's recent actions to consolidate control over the board could further diminish employees' chances of success in challenging firings.
Supreme Court tackles 'reverse' discrimination case
A former employee in Ohio's youth corrections system claims she faced discrimination for being heterosexual after being demoted and denied a promotion in 2019. Marlean Ames said "I was straight and pushed aside," as she claimed that her gay supervisor favored less qualified gay candidates over her. A ruling in her favor by the Supreme Court, which has a 6-3 conservative majority, could make it easier for non-minorities to pursue claims of illegal bias - often called "reverse" discrimination - under a landmark federal anti-discrimination law. The NAACP Legal Defense & Educational Fund supports Ames' claim.
DIVERSITY, EQUITY & INCLUSION
Target faces Florida lawsuit over diversity claims
Target is facing a lawsuit from the State Board of Administration of Florida, which oversees public pension funds that own Target stock. The lawsuit alleges that Target concealed risks associated with its diversity and social initiatives, resulting in a backlash that negatively impacted its stock price. Florida claims that Target misled investors and its core customer base, particularly working families, regarding its environmental, social, and governance mandates. The lawsuit cites a "disastrous" Pride Month campaign in May 2023, which led to the removal of some LGBTQ-themed merchandise due to in-store confrontations. In response to the backlash, Target announced on January 24th that it would end its diversity, equity, and inclusion initiatives this year, joining other companies like Walmart and Amazon in scaling back such efforts.
Citigroup retreats from DEI initiatives
Citigroup CEO Jane Fraser has said that the bank will no longer require a diverse pool of candidates for job interviews, and it will only maintain "aspirational representation goals" where mandated by local law. Meanwhile, Citigroup's Diversity, Equity and Inclusion and Talent Management team will be rebranded as Talent Management and Engagement. "It is important to note that we're living in an environment where things are changing quickly," Fraser wrote, adding that the bank will still encourage "the best practice of having a variety of perspectives included in hiring decisions."
WORKFORCE
New jobless claims ticked up slightly last week
Slightly more Americans applied for jobless benefits last week, with claims rising by 5,000 to 219,000 in the seven days to February 15th, according to the Labor Department. Economists polled by Reuters had forecast 215,000 claims for the latest week. Despite this increase, layoffs remain in a healthy range, with the four-week average dropping 1,000 to 215,250. The total number of Americans receiving unemployment benefits, reported with a one-week lag, rose 24,000 to 1.87m. Government job cuts ordered by the Department of Government Efficiency, including around 7,000 in the IRS, are yet to be reflected in the data. "The current round of unprecedented belt-tightening and budget cuts and layoffs in Washington have not become a reality in terms of showing up in the national statistics," said Christopher Rupkey, chief economist at FWDBONDS. "But actions taken in the early days of the new administration may yet bring about a broader economic slowdown and is frankly a risk factor that economists did not see at the start of the year."
HIRING
Chipotle to hire 20,000 additional workers for 'burrito season'
Chipotle Mexican Grill plans to hire 20,000 additional employees for "burrito season," as the period from March to May has become known. The company, which operates over 3,700 restaurants in the U.S., last year hired 19,000 additional workers, both full-time and part-time, to deal with increased footfall in its busiest period of the year.
TECHNOLOGY
AI cheating scandal rocks accounting classes
The emergence of generative artificial intelligence (AI) has sparked concerns about AI-guided cheating in educational settings, particularly among accounting educators. Sean Stein Smith, a professor at Lehman College, said: "Students still need to understand the implications of ASUs, disclosures, etc., and if they rely entirely on AI for assignment completion that knowledge will fade away." While some educators, such as Tracey Niemotko from Marist University, view AI as a helpful tool rather than a cheating mechanism, others worry about students' over-reliance on AI, which may hinder their critical thinking skills. Jack Castonguay from Hofstra University expressed concern that students struggle to apply core concepts during presentations and exams due to their dependence on AI. As discussions continue among faculty on how to address this issue, the challenge remains to ensure students develop the necessary skills for their future careers in accounting.
INTERNATIONAL
Reverse mentoring drives diversity
The U.K.'s legal profession is witnessing a shift towards "reverse mentoring," whereby junior lawyers mentor their senior counterparts to enhance inclusivity and understanding of diverse backgrounds. In the Times, Geraldine Stephens, an associate at Clarke Willmott, shares her experiences with Stephen Rosser, the firm's chief operating officer, highlighting the importance of exploring knowledge gaps and fostering a more inclusive workplace. "Where you come from . . . has a massive impact on your career and life chances," she says. Similarly, Myles Henry, a young associate at Clifford Chance, mentors Nick Spurrell, a partner, discussing workplace biases and inclusivity. Spurrell notes the scheme's role in reinforcing a culture of meritocracy and mutual respect.
Continental cuts jobs amid downturn
Continental, the German auto parts supplier, has announced significant job cuts, including the closure of its Nuremberg plant, due to a downturn in the automotive industry. By the end of 2026, approximately 3,000 research and development jobs will be eliminated, with over half of these cuts affecting German facilities. Michael Iglhaut, head of Continental's General Works Council, expressed deep concern over the cuts, warning that they could lead to a comprehensive restructuring and stating that "job cuts and cost reductions at any price" are not sustainable for the future. The company says it aims to handle layoffs responsibly, primarily through attrition.
OTHER
California aims to block sales of anti-aging products to U-18s
California Assembly Member Alex Lee, D-San José has introduced a bill, AB 728, to prohibit the sale of anti-aging skin care products to individuals under 18. The move comes in response to a trend of young children, dubbed "Sephora Kids," purchasing potent skin care items that dermatologists deem unsafe for their sensitive skin. Lee said: “Children who are 10 years old, 12 years old, shouldn't have to worry about wrinkles.” The bill aims to restrict products containing vitamin A derivatives and alpha hydroxy acids, which can be harsh for young skin. Despite the growing market for kid-friendly skin care, experts warn that the trend may foster an unhealthy obsession with appearance. The bill could be signed into law by October, sending a strong message against the marketing of such products to minors.
 


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