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North American Edition
26th April 2024
 
THE HOT STORY
DHL Express to pay $8.7m to settle discrimination lawsuit
DHL Express has agreed to pay $8.7m to settle a race discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit accused DHL's U.S. arm of assigning undesirable delivery routes and heavier lifting to Black employees. The settlement also requires DHL to review and revamp its work assignment policies and internal worker complaint procedures. The EEOC alleged that white drivers who objected to routes in high-crime neighborhoods were often replaced by Black employees, who were more likely to witness crimes. Additionally, Black workers were reportedly given more physically demanding tasks compared to their white counterparts. The settlement, the largest announced by the EEOC since March 2022, will benefit 83 Black workers who participated in the lawsuit. DHL denied any wrongdoing and stated that it does not tolerate discrimination. As part of the settlement, DHL will undergo monitoring by former EEOC commissioner Leslie Silverman for four years.
WORKFORCE
More people turn to earned wage access apps for financial relief
More people are turning to Earned Wage Access apps, such as EarnIn, Empower, and Dave, to access their wages before payday and cover expenses. These apps provide short-term loans to workers in between paychecks, allowing them to pay bills and meet everyday needs. While proponents argue that these apps help individuals manage their finances and avoid payday loans, critics claim that they are payday loans in disguise, trapping users in a cycle of borrowing. The costs of these loans are not always transparent, with high APRs and mandatory fees. Some employers have integrated these apps into their payroll, offering different costs and fee structures. The Earned Wage Access industry has seen significant growth, driven by financial insecurity and the need for short-term liquidity. As regulation efforts increase, states are moving to subject Earned Wage Access to the Truth in Lending Act amid calls for more transparency and worker protections in the industry.
Lawmakers in Sacramento attempt to extend unemployment benefits to striking workers
Months after Gov. Gavin Newsom vetoed the proposal, lawmakers in Sacramento are trying again to extend unemployment benefits to California workers who are on strike. Under Senate Bill 1116, introduced by State Sen. Anthony Portantino (D-Burbank) and State Sen. María Elena Durazo (D-Los Angeles), California workers would be eligible to receive unemployment benefits after being on strike for 14 days. "No one goes on strike because they want to go on strike," said Portantino. The bill aims to help ease the economic pain of a strike and to help union members withstand pressure from their employers. The California Labor Federation supports the bill, while the California Chamber of Commerce and other business groups oppose it. Last year, Newsom vetoed a similar bill, citing concerns about the unemployment trust fund. With the state facing a budget deficit, convincing Newsom to change his mind may prove difficult. Analysts estimate that providing unemployment benefits to striking workers could cost from the "low millions to tens of millions of dollars." Lorena Gonzalez, head of the California Labor Federation, called for a full accounting of the actual cost.
New jobless claims at lowest level since February
Initial jobless claims fell by 5,000 to 207,000 in the seven days to April 20th, the Commerce Department reported Thursday, the lowest level since the week ended February 17th. Economists surveyed by the Wall Street Journal had estimated that new claims would increase 3,000 to 215,000. The four-week moving average dropped 1,250 to 213,250, while continuing claims, reported with a one-week lag, fell 15,000 to 1.781m.
CORPORATE
Craft retailer Joann receives bankruptcy approval, eliminates $505m debt
Craft retailer Joann has received approval from a U.S. bankruptcy judge for a restructuring plan that will eliminate $505m in debt and allow all 815 retail locations to remain open. The plan, which was unanimously voted for by Joann's creditors, will result in no change for the Ohio-based company's 18,000 employees or store landlords. Joann entered Chapter 11 bankruptcy in March and is expected to emerge from bankruptcy by April 30th.
LEGAL
CFTC investigates banks for whistleblower suppression
The Commodity Futures Trading Commission (CFTC) is investigating banks, including JPMorgan Chase, Bank of America, and Citigroup, to determine if they have been suppressing whistleblowers. The CFTC has requested non-disclosure agreements and employment and customer agreements from the banks' swaps and clearing businesses. The U.S. Securities and Exchange Commission has also increased oversight in this area and imposed fines on non-compliant companies. JPMorgan previously paid an $18m civil penalty for violating whistleblower protection rules. Damian Williams, a top enforcer of criminal malfeasance on Wall Street, has encouraged whistleblowers to come forward and report wrongdoing.
Amazon execs deleted chats amid antitrust probe, FTC says
The Federal Trade Commission (FTC) alleges that top Amazon executives, including founder Jeff Bezos and chief executive Andy Jassy, erased text messages that the agency could have used in its antitrust case against the retail giant. Between April 2019 and May 2022, Mr Bezos, Mr Jassy and others communicated using the encrypted communications platform Signal, the FTC said Thursday in a court filing, and used a feature so that messages weren’t retained. Executives used the encrypted communications app after Bezos disclosed in 2019 that his phone had been hacked and alleged the National Enquirer tabloid sought to publish his intimate photos and texts. The court filing seeks information about what Amazon executives conveyed to employees about when to communicate via Signal and its instructions on retaining messages.
HIRING
Highly skilled foreign nationals prefer Canada over U.S. for work opportunities, study suggests
A study by the National Foundation for American Policy (NFAP) suggests that highly skilled foreign nationals, including international students, are choosing Canada over the U.S. due to difficulties in obtaining H-1B visas and permanent residence in the U.S. Canada's more favorable immigration policies and easier pathways to permanent residence make it an attractive option for international students, the study says. It is noted that the rise in Indian students attending Canadian universities has fueled the growth of Indian immigrants to Canada, with a quadrupling in numbers since 2013.
WORKPLACE
Chipotle says staff can again add chicken to their meals
Chipotle Mexican Grill has rescinded a policy introduced last week stopping its own employees from including chicken in their own meals. The directive aimed to preserve the company's chicken supplies to meet customer clamor for its chicken al pastor dish. “Due to the high demand for chicken in our restaurants and sustained success of our chicken al pastor, last week we asked all our corporate and in-restaurant employees to temporarily select another protein option for their meals to preserve our supply,” chief corporate affairs and food safety officer Laurie Schalow said. “We’ve since informed employees they can return to ordering chicken in their meals as normal.”
London remains the world’s most desirable city for work
London has been named the world’s most desirable city for work for a tenth consecutive year. While London came out on top, Amsterdam, Dubai, Abu Dhabi, New York, Berlin, Singapore, Barcelona, Tokyo and Sydney all made the top ten. The survey also saw the U.K. land fourth spot on a ranking of the most popular countries. Australia took the top spot, followed by the U.S. and Canada. The Decoding Global Talent survey, which was conducted by Boston Consulting Group, The Network and The Stepstone Group, polled more than 150,000 workers from 188 countries.
RISK
New AI tool helps identify child labor risk in supply chains
Child labor is a hidden risk in supply chains and it is being exacerbated by climate change. A new AI-driven tool, the Child Labor Index, scores companies based on disclosure levels, public perception, and supply chain exposure to child labor. The tool aims to raise awareness among investors and help them monitor risk in their portfolios. According to the International Labour Organization, poverty induced by climate change leads to increased reliance on child labor, particularly in agriculture. Environmental disasters push families into poverty, forcing children to work in farms. The AI technology eliminates human bias and assigns scores based on data from news sources and corporate disclosures. The tool is expected to be commercially available later this year.
INTERNATIONAL
Two major U.S. law firms open offices in Saudi Arabia
Two major U.S. law firms, Quinn Emanuel Urquhart & Sullivan and Morgan Lewis, are opening offices in Saudi Arabia following a change in the country's foreign lawyers practicing regulations. Quinn Emanuel, with 1,000 lawyers, has been focusing on Saudi Arabia due to its investment in diversifying the economy and encouraging international investment. Morgan Lewis, with over 2,000 lawyers, is also preparing to open an office in Riyadh. Since October 1, several other U.S. and international law firms have either opened offices or been granted licenses to work in Saudi Arabia. The country has been implementing economic and social policies to reduce dependence on oil exports, including plans to double the size and population of Riyadh through $800bn investments. Last year, Saudi Arabia allowed foreign law firms to operate independently in the country. Quinn Emanuel has had a presence in Saudi Arabia since 2022 through its affiliation with Alrubayyi & Attorneys. Nasser Alrubayyi, the head of that office, also serves as the co-chair of Quinn Emanuel's Middle East and North Africa practice.
New legislation passed to protect workers employed by digital platforms
The European Parliament has passed new legislation to protect workers employed by digital platforms, such as couriers, drivers, and food delivery providers. The law creates a presumption of employment relationship, shifting the burden of proof to the platform to demonstrate that the worker is not an employee. The legislation aims to improve working conditions and prohibits firing workers based on algorithmic decisions. It also mandates human oversight for crucial decisions and imposes restrictions on processing personal data. Member States have two years to incorporate these rules into national law, which could lead to a broader review of employment contracts for workers under B2B agreements.
Half of Singapore workers would quit jobs requiring more office work, survey finds
Half of Singapore workers are willing to quit their jobs if they are required to work in the office more often, according to a survey by Randstad. The survey found that Gen Z employees were most likely to feel this way. The study also revealed that workers prioritize work-life balance over salaries, even amid concerns about inflation and the rising cost of living. The Singapore government has recently announced that all employers must have a process in place for workers to request flexible work arrangements. The survey also highlighted the importance of social and environmental issues in the workplace, with respondents expressing a desire to work for companies that are sustainable and promote diversity and inclusivity.
UK air traffic boss defends engineers who work from home
Martin Rolfe, the CEO of the UK's air traffic services provider, has defended engineers who work from home, telling lawmakers the ability to problem solve remotely when called upon was "a bonus." NATS - formerly National Air Traffic Services – came under fire last year when an IT systems failure led to air traffic chaos and grounded flights. Ryanair boss Michael O'Leary accused engineers of "sitting at home in their pajamas." Mr Rolfe has defended NATS’ staffing arrangements, telling the Transport Committee his organization operated a "very similar model to almost all of the rest of critical national infrastructure." He insisted that there were always engineers on site to solve problems but noted that expert "design engineers" were needed for particularly complex issues. Remote working technology, he argued, enables these engineers to look into issues immediately.
OTHER
Swing-state voters support billionaires tax to bolster social security, poll finds
An overwhelming 77% of registered voters in swing states support a billionaires tax to address Social Security shortfalls, according to a Bloomberg News/Morning Consult poll. The poll also found that more than half of respondents approve of trimming benefits for high-earners and taxing wages for Social Security beyond the first $168,600 in earnings. However, raising the retirement age or introducing a new formula for benefit payments were less popular options. The poll highlights the challenge Congress faces in shoring up the social safety net program for aging Americans. Without action, Social Security recipients may only receive 75% of their promised payments by 2034. Swing-state voters trust President Joe Biden more than Republican nominee Donald Trump to preserve Social Security and Medicare. Trump has not provided a clear vision for the benefit programs, while Republicans in Congress have proposed raising the retirement age and reducing benefits for future generations.
 


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