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North American Edition
2nd April 2025
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THE HOT STORY
Trump administration blocked from firing federal employees on probation
A federal judge has ruled that the Trump administration cannot swiftly terminate thousands of probationary federal workers across 19 states and Washington, D.C. U.S. District Judge James Bredar said that federal agencies must adhere to proper procedures for mass layoffs. The administration previously fired around 24,500 employees in February without prior notification to state and local governments. Bredar's ruling only mandates the reinstatement of employees in the states involved in the lawsuit. Bredar last month had already ruled that the firings were likely illegal and ordered 18 agencies to reinstate workers who had been fired pending further litigation. Yesterday's decision will be in place pending the outcome of the lawsuit, which could take months to resolve.
WORKFORCE BENEFITS
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WORKFORCE
Job openings shrink as economic uncertainties grow
The number of job openings in the U.S. were effectively flat in February, the Labor Department reported on Tuesday. The Job Openings and Labor Turnover Survey found that new job postings slipped to 7.57m,  from 7.76m in January. Economists expected job openings to drop to 7.625m, according to FactSet. The hiring rate was unchanged at 3.4% in February, near the lowest since the onset of the pandemic. The quits rate, which measures the percentage of people voluntarily leaving their jobs each month, was also unchanged at 2%. The number of vacancies per unemployed worker, a ratio the Fed watches closely as a proxy of the balance between labor demand and supply, remained at 1.1.
STRATEGY
Health layoffs include staff overseeing bird flu response
The Trump administration has terminated staff involved in the Food and Drug Administration's bird flu response amid significant layoffs at the Department of Health and Human Services. Health Secretary Robert F. Kennedy, Jr. has said he plans to eliminate 10,000 positions across various departments. The firings, which affected leadership and administrative staff at the FDA's Center for Veterinary Medicine, threaten to halt operations of the Veterinary Laboratory Investigation and Response Network, which is crucial for testing raw pet food for bird flu. Keith Poulsen, director of the Wisconsin Veterinary Diagnostic Laboratory, emphasized the importance of coordinated testing, saying: "You chop off the head of the leadership, and now we have to reinvent that wheel." The ongoing bird flu outbreak has already led to the death of nearly 170m birds and has significantly impacted egg prices.
Whirlpool to cut 650 jobs
The Whirlpool Corporation has announced plans to lay off 650 employees from its Amana facility, effective June 1. “This is really about aligning to current market conditions driven by consumer demand,” a Whirlpool statement said. The layoff represents about one-third of the facility's workforce of over 2,000 employees. The company said it is committed to supporting affected workers through various resources, including on-site HR support and guidance on unemployment benefits. The layoffs are the largest announced in Iowa for 2025. The International Association of Machinists and Aerospace Workers expressed its support for the affected employees and emphasized the importance of protecting union members' rights during this transition. Iowa Senate Democratic Leader Janice Weiner highlighted the threat to Iowans' livelihoods, saying: "Alarm bells should be sounding in our communities."
LEGAL
LAPD sergeant wins $4.5m lawsuit
Randy Rangel, a former LAPD sergeant, has been awarded $4.5m by a Los Angeles County jury after he faced retaliation for reporting overtime fraud within the department. Rangel, who served 32 years before retiring in 2023, claimed that his troubles began in 2018 when he reported Sergeant Humberto Najera for overreporting overtime. Despite his complaints, no investigation was initiated, leading to a campaign of harassment against him. The LAPD has faced numerous lawsuits over similar issues, with City Controller Kenneth Mejia noting that over $107m has been paid this fiscal year for police-related cases. Officials in the department are said to be examining the issue of growing legal payouts, and hope to figure out ways to clamp down on behavior that can precipitate such lawsuits. “The culture was terrible. I mean it was all about greed,” observed Heather Rolland, a former Transit Services detective. “It's a good ol' boys club.”
Supreme Court tackles religious tax exemption
The U.S. Supreme Court is set to hear a case involving the Catholic Charities Bureau, which is seeking a religious exemption from Wisconsin's unemployment insurance tax. The bureau argues that the denial of this exemption infringes on the First Amendment's guarantee of free exercise of religion. The Wisconsin Supreme Court previously ruled against the bureau, stating that its activities were "primarily charitable and secular." The Catholic Charities Bureau has been providing services since 1917, but the state determined in 1972 that it was subject to the unemployment tax. The outcome of this case could have significant implications, as the Freedom from Religion Foundation warned that a ruling in favor of the bureau could allow many religious organizations to exempt themselves from various regulations, potentially jeopardizing unemployment benefits for hundreds of thousands of employees. A decision is expected by the end of June.
DIVERSITY, EQUITY & INCLUSION
ABC's broadcast license under threat over Disney's DEI practices
Disney is currently under investigation by the Federal Communications Commission (FCC) regarding its diversity, equity, and inclusion hiring practices. FCC Chairman Brendan Carr warned that if evidence shows Disney engaged in race and gender-based discrimination, it could jeopardize ABC's broadcast licence. The inquiry follows President Trump's executive orders aimed at dismantling DEI policies across various sectors.
REMUNERATION
ISS joins Glass Lewis in objecting to Goldman pay
Institutional Shareholder Services (ISS) has recommended that Goldman Sachs investors reject the board's decision to grant $160m in stock awards to CEO David Solomon and COO John Waldron. The awards, intended to retain top executives amid fierce competition, were unveiled in January but lacked "rigorous, pre-set performance-vesting criteria," raising concerns about their "magnitude and structure," according to ISS's report. Glass Lewis, another proxy adviser, has also advised against the pay packages. Goldman Sachs has defended the awards, saying they are crucial for maintaining leadership stability and a strong succession plan.
TRAINING & DEVELOPMENT
Gen Z struggles with phone calls
International audit, accounting and consulting partnership Forvis Mazars is launching a training program aimed at improving the telephone communication skills of its Gen Z employees, who are reportedly anxious about phone conversations. Forvis U.K. chief executive James Gilbey said: "We've committed to a major firm-wide investment to put relationship skills front and center." The initiative responds to concerns that remote work and digital communication have left many young hires unprepared for essential workplace interactions.
INTERNATIONAL
Foreign tech workers campaign against new Swedish citizenship law
Eric Peterson, a Spotify software engineer, has launched a petition against Sweden's new law tightening citizenship requirements, which he believes will deter highly skilled foreign workers. The letter argues that extending the residency requirement from five to eight years will diminish Sweden's appeal to skilled workers and that retroactive application of the law could harm trust in Swedish institutions. Peterson hopes to highlight the economic implications of the proposed changes to influence the government's decision-making process. "I've been very surprised and pleased at the volume of signatures that we've received and the feeling behind it," Peterson told The Local. "We're at a little over 130 signatures right now, which is way more than I expected, because I'm not broadcasting this. This is just going through the whisper networks of immigrants in tech in Sweden."
More Dutch employers include religious holiday swaps in CAO
An increasing number of employers in the Netherlands are willing to accommodate workers who wish to swap religious holidays. As Muslims celebrate Eid al-Fitr, many companies are incorporating this flexibility into their collective labor agreements (CAOs). For instance, Muslims can take time off for Eid by offering to work during Christian holidays like Christmas. Civil engineering firm Arcadis has already implemented a holiday swapping system that includes various cultural and religious observances. This initiative allows employees to maintain their holiday entitlements while respecting diverse cultural practices.
Return-to-office mandates put talent off
According to a poll by Hays, nearly half of professionals in the U.K. would consider resigning if required to return to the office full-time; 58% of female workers expressed this sentiment compared to 42% of men. The survey revealed that 77% of the workforce prefers a hybrid working model, with three days in the office being the most common arrangement. Pam Lindsay-Dunn, chief operating officer of Hays U.K. and Ireland, said: "Employers need to realize they are at serious risk of losing top talent if they make a full-time return-to-office compulsory." The cost of commuting emerged as a significant concern, affecting 73% of professionals' decisions regarding office attendance. Despite some companies pushing for more in-office time, only 8% of employers plan to enforce a return to the office in the next six months.
OTHER
Tech bans don't prepare children for digital world, warn experts
A study published in the British Medical Journal by a group of academics from the Universities of Birmingham and Cambridge in the U.K., Harvard in the U.S., the Swedish School of Sport and Health Sciences, and the University of São Paolo, warns that banning children from having smartphones or from accessing social media represent "stop-gap solutions" that "do little to support children's longer-term healthy engagement with digital spaces across school, home, and other contexts, and their successful transition into adolescence and adulthood in a technology-filled world." The study calls for more work to be done on age-appropriate design for devices and on education around the use of technology to ensure children are ready to participate in a digital world.
 


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