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North American Edition
4th April 2025
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THE HOT STORY
Fired HHS staff may be asked to keep working
The Department of Health and Human Services (HHS) has said that thousands of employees who have been dismissed from the department and the public health agencies it oversees, including the FDA, CDC and National Institutes of Health, may be asked to temporarily continue working for two months. The department earlier this week began mass layoffs, with the aim of firing 10,000 employees in accordance with a broader plan by the White House to shrink the federal government. Staffers said they were given "reduction in force" notices that said they were being placed on administrative leave effective April 1 and until June 2.  "All employees affected by the reduction in force may be asked to temporarily work until their government service ends on June 2," said HHS spokesperson Andrew Nixon. "This decision is focused on ensuring that the transition is as seamless as possible, minimizing any disruption to the agency's mission and operations. HHS fully supports this approach, which aims to maintain public health services while managing the reorganization process effectively."
WORKFORCE BENEFITS
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WORKFORCE
Labor market calm in run-up to tariff announcement
U.S. initial jobless claims moved lower last week, according to the Department of Labor, signaling continued labor market stability ahead of potential volatility from import tariffs. Initial claims dropped 6,000 to a seasonally-adjusted 219,000 in the seven days to March 29th, well below the 225,000 forecast by economists in a Reuters poll. The four-week moving average dropped 1,250 to 223,000, while the total number of claimants, reported with a one-week lag, increased by 56,000 to 1.9m. "This adverse trade news from the White House is an extreme external shock to the economy that is in all the university textbooks, and so too is the need for being on high alert for signs of recession," said Christopher Rupkey, chief economist at FWDBONDS. "Weekly job layoffs made by companies are minimal at the moment, but it is too early to forecast what businesses will do in the weeks and months ahead."
DIVERSITY, EQUITY & INCLUSION
EEOC chief shifts focus to investigating DEI
The acting chief of the Equal Opportunity Employment Commission (EEOC) is prioritizing President Trump's campaign against diversity, equity, and inclusion programs. Andrea Lucas has received support from the Trump administration, which has issued executive orders targeting DEI initiatives. Critics, including former Democratic EEOC officials and civil rights groups, argue that Lucas is overstepping her authority and misleading employers about the legality of DEI practices. They have urged employers to be wary of her directives and guidance. The EEOC's recent "technical assistance" documents warn that certain DEI practices may violate Title VII of the Civil Rights Act. “Far too many employers defend certain types of race or sex preferences as good, provided they are motivated by business interests in ‘diversity, equity, or inclusion.',” Lucas said in a statement announcing the new technical assistance on DEI.
GOP-led states demand 20 law firms disclose DEI practices
Attorneys general from 12 Republican-led U.S. states have sent letters to 20 major law firms demanding information about their diversity, equity and inclusion employment practices. The letters build on a similar request to the same firms by the U.S. Equal Employment Opportunity Commission, the agency that enforces federal laws banning workplace discrimination. Andrea Lucas, acting EEOC chair, warned last month that the firms' employment policies related to DEI may be illegal. The letters said that information in the EEOC's request "indicates that your firm may have acted in violation" of federal and state law.
WORKPLACE
Boeing CEO defends safety efforts
Boeing CEO Kelly Ortberg says the firm is focused on improving safety and not pressuring workers to speed up production, telling a U.S. Senate Commerce Committee hearing: "I'm not pressuring the team to go fast. I'm pressuring the team to do it right." Lawmakers have raised concerns about Boeing's quality control and oversight, particularly after a mid-air emergency in January 2024 revealed deficiencies in the firm's processes. Ortberg acknowledged "serious missteps" in recent years but assured the committee that "drastic changes" have been made to prevent future issues.
STRATEGY
Stellantis halts production amid tariffs
Stellantis has announced a temporary suspension of production at its Windsor assembly plant in Canada and the Toluca assembly plant in Mexico, in a move that will lead to the temporary layoff of 900 employees in the United States. The decision follows the implementation of a 25% tariff on imported vehicles by U.S. President Donald Trump. Stellantis North American COO Antonio Filosa said that the actions taken "are necessary given the current market dynamics." The production pause will last for the weeks of April 7 and 14 in Canada, while operations in Mexico will halt for the entire month of April.
LEGAL
Trump tariffs challenged by conservative legal group
Conservative legal group New Civil Liberties Alliance (NCLA) has filed what it says is the first lawsuit seeking to block Donald Trump's new tariffs on imports from China, arguing that the president is overstepping the limits of his authority. The group is representing a Florida-based stationery business called Simplified, which claims it will suffer “severe” harm from his “unconstitutional” tariffs on China. “By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress’s right to control tariffs, and upset the Constitution’s separation of powers", NCLA senior litigation counsel Andrew Morris said in a statement. Trump has declared an emergency over China's alleged complicity in the U.S. opioid epidemic, framing tariffs as a negotiating tool for ending the influx of the drugs.
Paid parental leave for Iowa state workers clears legislative hurdle
Iowa's House File 889 aims to provide state workers with four weeks of paid maternity leave and one week of paid paternity leave following the birth of a child. The Senate Workforce Committee unanimously advanced the proposal, which has already received broad bipartisan support in the House. Currently, Iowa state workers lack dedicated paid time off for new parents, forcing them to use vacation and sick leave. Molly Widen, chief of staff to the state treasurer, emphasized the need for the change, saying: "Some things in life you can't plan for." Governor Kim Reynolds supports the initiative, highlighting its importance for family bonding and recovery. This marks the third consecutive year lawmakers are considering paid parental leave benefits.
ECONOMY
U.S. services activity remains in expansionary territory
Two measures of U.S. services activity published Thursday suggest that the sector broadly remained in expansionary territory through March. The Institute for Supply Management Purchasing Managers' Index dropped from 53.5 in February to 50.8 last month, just above the 50-mark separating growth from contraction. The decline was steeper than expected, with forecasts pointing to a more modest drop to 53%. The Business Activity Index, a gauge of current output, strengthened to 55.9; however, the New Orders index dropped 1.8 points to 50.4, the Backlog of Orders Index slipped to 45.6 from 47.7, and the Employment Index plummeted from 53.9 to 46.2. Separately, S&P Global's U.S. Services Purchasing Manager' Index stood at 54.4, representing the 26th consecutive month of expansion.
INTERNATIONAL
Australian wage growth surges under new law
New research from the McKell Institute reveals that the Australian government's "Same Job, Same Pay" framework has significantly increased wages across the country. Introduced in 2023, this amendment to The Fair Work Act aims to eliminate the "labour hire loophole," ensuring that labor hire workers receive equal pay to their permanent counterparts. Ed Cavanough, CEO of the McKell Institute, said: "This report shows it is doing exactly that, and on a far greater scale than many expected." The report highlights that wage growth is already surpassing government forecasts, with potential annual wage impacts estimated to reach up to $920.3m. Employment and Workplace Relations Minister Murray Watt emphasized the importance of fair pay, warning that any repeal of the law could harm workers' earnings and the economy, particularly in regional areas.
Minister cracks down on Shabbat work
Israeli labor minister Yoav Ben-Tzur has launched an operation enforcing working hours and rest laws at businesses which employ Jewish workers on their weekly rest day. "Labour laws in the State of Israel are not a recommendation; they are a civic duty to preserve workers' rights," Ben-Tzur posted on social media. The Labor Ministry's Regulation and Enforcement Administration investigated a number of businesses at the BIG Fashion Glilot mall, and found that 21 workers had experienced rights violations, including 13 Jewish workers who were found to be employed on their weekly rest day. "The Working Hours and Rest Law in the State of Israel clearly state that it is strictly forbidden to employ Jewish workers on Shabbat without special permission,” Ben-Tzur said. Opposition politicians have challenged the crackdown as unnecessary.
Tariffs threaten 60,000 jobs in Italy, union says
PierPaolo Bombardieri, the general secretary of the UIL trade union confederation in Italy, has warned that 60,000 jobs are at risk following President Donald Trump's announcement of significant tariffs on imports to the United States. He said: "The duties are a problem for the whole country," as he highlighted the potential economic fallout, particularly in sectors such as automotive, fashion, mechanics, and agribusiness. Italy exports goods worth €70bn, and the impact of these tariffs could be severe for employment across these industries.
 


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