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North American Edition
27th March 2024
 
THE HOT STORY
Election date set for VW plant in Tennessee
The National Labor Relations Board has scheduled an election at the Volkswagen (VW) plant in Chattanooga, Tennessee, from April 17 to 19. The election will be the first test of the United Auto Workers' (UAW) effort to organize nonunion automobile factories across the nation. The UAW aims to target more than a dozen nonunion auto plants, including those run by Tesla, Nissan, Mercedes-Benz, Hyundai, Kia, Toyota, Honda, and others. The VW plant in Chattanooga has over 4,000 production workers, and a supermajority of them have signed cards supporting union representation. The UAW has previously come close to representing workers at the VW plant in two previous elections. The union has cited mistreatment by VW management and low pay as reasons for seeking unionization. The UAW's organizing effort comes after successful strikes against General Motors, Ford, and Stellantis, which resulted in pay raises and other benefits for workers.
LEGAL
Telecoms giant Bell lays off over 400 workers in 10-minute video call meetings
Canadian telecommunications giant Bell has laid off over 400 workers in virtual group meetings, according to Unifor, the union representing the employees. Unifor condemned the impersonal manner of the terminations, describing it as "beyond shameful." The fired workers, many with years of service, were informed they were being declared "surplus" in 10-minute video calls. Bell's communications director disputed some of Unifor's claims, stating that the company has been transparent with union leadership and met its obligations under collective bargaining agreements. The layoffs came after Bell announced plans to eliminate 4,800 positions, or about 9% of its workforce. Bell maintains that the layoffs are part of a necessary restructuring. Unifor vows to continue its campaign against the company's handling of the layoffs. "Our dedicated, loyal workers, who are predominately women, will have to explain to their families tonight that they are being let go from Bell for no good reason other than making sure that their shareholders and Board of Directors come first when getting paid. It's absolutely disgusting," said Len Poirier, Unifor National Secretary-Treasurer.
Companies argue that the NLRB is unconstitutional
Amazon, SpaceX, Starbucks, and Trader Joe's are among companies which are arguing that the National Labor Relations Board (NLRB) is unconstitutional. The Supreme Court has previously upheld the constitutionality of the NLRB and rejected similar arguments. The attacks on the NLRB are seen as a response to growing support for unions among Americans. The NLRB has been more assertive in prosecuting employers for violating workers' rights and has implemented rules to facilitate the unionization process. If these corporations succeed in their constitutional challenges, the NLRB's ability to protect workers' rights and negotiate fair contracts could be compromised. Additionally, other government agencies may also be at risk. The Supreme Court's conservative majority has shown a pro-business stance, which raises concerns for labor rights and administrative agencies. However, there is optimism as workers are organizing in greater numbers, and history has shown that popular support for unions can influence the Supreme Court's decisions, writes  Kate Andrias of Columbia University.
U.S. appeals court rules in favor of produce company in labor law case
A U.S. appeals court has ruled in favor of Stern Produce Company, stating that the company did not violate federal labor law by warning a pro-union truck driver not to cover up a surveillance camera in his truck. The court called the National Labor Relations Board's ruling against the company "nonsense." The court stated that the company's policy requiring drivers to keep the cameras on "at all times" did not infringe on the driver's rights. The court also reversed the board's finding that Stern violated a different pro-union employee's rights. The United Food and Commercial Workers union has been attempting to organize drivers and warehouse workers at Stern since 2015. The case is Stern Produce Company Inc v. NLRB, U.S. Court of Appeals for the D.C. Circuit, No. 23-1100.
U.S. appeals court revives lawsuit alleging sexist discrimination in firing
A former supermarket manager's lawsuit alleging sexist discrimination in her firing has been revived by a U.S. appeals court. The court clarified that workers terminated for legitimate reasons can still win discrimination lawsuits if they can show that bias played a role in the decision. The unanimous three-judge panel of the 2nd U.S. Circuit Court of Appeals in New York stated that workers only need to demonstrate that discrimination was a factor in the employment decision, rather than proving that the decision itself was a pretext for discrimination. The lawsuit against supermarket operator Golub Corp was brought by Elaine Bart, who claims her manager made derogatory comments about women before firing her for falsifying food safety logs. The court's ruling provides clarity on the burden of proof faced by plaintiffs in mixed-motive discrimination cases.
WORKFORCE
BlackRock's Fink warns of looming ‘retirement crisis’ for global pension savers
Larry Fink, CEO of asset manager BlackRock, has warned of a looming “crisis” for global pension savers, saying retirees across the world are threatened by a lack of money to support them. He also suggested that policymakers have neglected the importance of pension savings, saying: “As a society, we focus a tremendous amount of energy on helping people live longer lives. But not even a fraction of that effort is spent helping people afford those extra years.” In a letter to BlackRock investors, Mr Fink said that “maybe once a decade, the U.S. faces a problem so big and urgent that government and corporate leaders stop business as usual. They step out of their silos and sit around the same table to find a solution,” adding that business leaders “need to do something similar for the retirement crisis.”
Employment in 16 U.S. states remains below pre-pandemic levels
Employment in nearly one-third of U.S. states, including California and New York, remains below pre-pandemic levels, indicating a rise in migration to other parts of the country. Over one million fewer people are employed in 16 states, with Maryland and Illinois also witnessing notable decreases in employment. Meanwhile, Texas and Florida have seen significant gains in employment, with one million more people working in Texas since February 2020. The job market has recovered nationally, but certain sectors continue to struggle. The number of employed workers in the OPTICS category, which includes office and administrative, support, production, transportation and material moving, installation, maintenance and repair, construction and extraction, is about 1.9 million lower than 2019 levels.
STRATEGY
Canada Goose to cut 17% of corporate roles
Canada Goose, the luxury parka maker, is reducing about 17% of its corporate roles in an effort to rein in costs amid weaker consumer spending. The layoffs will affect approximately 156 jobs out of the 915 employees at Canada Goose's corporate head offices. Chief executive Dani Reiss stated that the company is realigning its teams to support growth across geographies, categories, and channels. The retailer had previously warned about the impact of soft consumer spending in China and the United States. Canada Goose has also announced a reshuffle of its leadership roles. Carrie Baker, president of brand and commercial, has had her remit expanded to include design, while Beth Clymer, president of finance, strategy and administration, is taking on additional operations responsibilities that used to fall under chief operating officer John Moran, who left the company last week. Chief transformation officer Daniel Binder has been given oversight of the firm's global stores.
INTERNATIONAL
Japanese government warns companies about North Korean IT workers posing as Japanese nationals
The Japanese government has issued a warning to domestic companies about contracting North Korean IT workers who pose as Japanese nationals. The warning statement was jointly released by the National Police Agency, Foreign Ministry, Finance Ministry, and the Ministry of Economy, Trade and Industry. The government has stated that the threat of North Korean workers posing as Japanese nationals is increasing. These workers disguise their identities or use a relative already residing in Japan to register with websites that connect freelance IT workers with tech companies. They tend to carry out their tasks and earn wages while based in China or Russia. The government's warning follows similar guidance issued by the United States and South Korea. A U.N. expert panel report in March found that North Korean workers were using false identities to win contracts and generate revenue for the country's weapons development programs.
More than half of South Korean workers are quietly quitting their jobs, survey says
More than half of South Korea's workers are choosing to do minimal work at their jobs without actually resigning, according to a recent survey. The trend, known as "quiet quitting," involves employees doing the bare minimum requirements of their job and not putting in any extra time or effort. The survey revealed that 57.4% of workers between their eighth and 10th years of work have quietly quit, while 56% of those between their fifth and seventh years have also stopped going above and beyond at work. The leading cause behind quiet quitting is dissatisfaction with salary and benefits, followed by a lack of enthusiasm about working at a company. South Korea's workers have a relatively low level of job and life satisfaction, which may explain why many are choosing to prioritize work-life balance over their jobs.
CBI uses gagging clauses to prevent discussion of sexual misconduct claims
The Confederation of British Industry (CBI) has admitted to using non-disclosure agreements (NDAs) to prevent staff from speaking publicly about their workplace experiences. Up to 10 NDAs have been signed in the past year after the U.K. business lobbying group's sexual misconduct scandal. The agreements have been accompanied by substantial financial settlements from the CBI. CBI chief executive Rain Newton-Smith has defended the use of NDAs, saying: "To the best of my knowledge anything we have signed in the past 11 months allows individuals to raise issues with the police.” Lawmakers on a Treasury committee investigating sexism in the City of London recently called for the use of NDAs to be banned in such cases, saying they had the effect of "silencing the victim of harassment and forcing them out of an organization, while protecting perpetrators."
China's job ad sparks debate on 'middle-age unemployment'
A job advertisement in China seeking cashiers aged 18 to 30 has sparked a debate about the perils of so-called "middle-age unemployment," Reuters reports. With millions of college graduates set to join the workforce, China is facing the threat of high youth unemployment as well as pressure on people over 30 to find jobs. State media have reported that China plans to raise the retirement age, but no specific national strategies have been announced. Last year, state media criticized employers for discriminatory hiring practices, including seeking younger and cheaper workers. The job ad in question drew over 140 million views and prompted emotional discussions on social media. The debate has highlighted the challenges faced by both young and older job seekers in China's sluggish economy.
OTHER
Kentucky could mandate cursive and print handwriting instruction
A Republican senator wants to ensure that students become proficient in cursive handwriting in Kentucky’s public elementary schools. Senate Bill 167 would require cursive writing to be taught “as a course of study” in elementary schools. Sen. Lindsey Tichenor said she filed it as a response to the handwriting style not being part of Common Core Standards, which began in 2010 as a way to bring cohesion to the way states taught English and math.  More than 20 states, including California and New Hampshire, have adopted directives to require teaching cursive writing.
 


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