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19th June 2024
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THE HOT STORY
California fines Amazon $6m for violating safety law
The California labor commissioner's office has fined Amazon nearly $6m for violating a safety law that has been in effect since 2022. The Warehouse Quotas Law allows employees to request explanations of productivity quotas and any discipline they may face in failing to meet the quotas. The law also prohibits quotas that interfere with breaks and health and safety laws. The state regulator said Amazon violated the law more than 59,000 times at two Southern California warehouses between October and March. Amazon denies using fixed quotas and is appealing the penalties, which are among the largest issued under the law. The investigation was assisted by the Warehouse Worker Resource Center. Amazon workers have raised concerns about pressure to meet quotas, and other labor advocacy groups have highlighted higher injury rates at Amazon compared to other employers.
REWARDS AND BENEFITS
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REMUNERATION
Growing number of U.S. companies revise diversity metrics for executive pay
A growing number of U.S. companies are revising diversity metrics for executive pay, possibly due to conservative-led attacks on diversity, equity, and inclusion (DEI) programs. According to an analysis of regulatory filings, the proportion of companies using DEI metrics to set compensation has dropped to 28% from around 33% in 2023. This year, 56 companies, including Best Buy, Chipotle, and Johnson & Johnson, have removed or de-emphasized DEI in executive pay. Conservative activists argue that such incentives may encourage improper hiring behavior. However, DEI advocates believe that diversity programs are crucial for business opportunities as customer populations become increasingly diverse. The changes made by companies include shifting from DEI to broader measures of human capital or workforce-related metrics.
WORKPLACE
Employees push back against hot desking as companies relent
Companies are rethinking hot desking as employees push back against sharing desks. The pandemic saw a rise in hot desking as companies sought to save money, but employees have raised concerns about hygiene and the lack of personalized spaces. “Clients don't want to give employees any excuse not to come in,” said Caitlin Turner, director of interiors at architecture firm HOK, which has designed offices for Boston Consulting Group and Honeywell International. “If you want them to share desks, they say, ‘Why should we?'” Salesforce and other companies are exploring the use of dedicated desks to entice employees back to the office, and the share of assigned desks in the U.S. has now increased after years of decline. Employees say they value the comfort and control of having their own desk, with personalized items and ergonomic chairs.
LEGAL
Deal reached to reform California law allowing workers to sue employers
A deal has been struck between business and labor groups in California to reform the state's law that allows workers to sue employers for wage theft and workplace abuses. The compromise, reached after negotiations, resolves problems with the law known as the Private Attorneys General Act (PAGA). The deal involves changes to the penalty structure, making it more difficult for lawyers to demand payouts from companies. It also imposes a time limit on lawsuits and gives courts the power to order employers to correct violations. The reform legislation will be considered by the Legislature this week. If approved, a coalition of businesses backing a ballot initiative to repeal PAGA will remove its measure. The deal has been praised by labor groups for protecting workers' rights and ensuring bad behavior by employers is halted. The reform aims to encourage compliance with labor laws and protect smaller companies. The allocated share of penalty money for workers will increase from 25% to 35%.
HEALTH & WELLBEING
Most Americans view pandemic-era policies as a good idea, poll suggests
A new poll shows that most Americans now consider pandemic-era policies as a good idea. The poll found that a majority of Americans approve of mask requirements in stores and businesses, healthcare worker vaccination requirements, indoor dining closures, and closing public schools. However, views varied across policies, with only 42% of Americans considering all four policies a good idea. Politics played a significant role in people's opinions, with Democrats and urban dwellers more likely to approve of the policies. Those who viewed the policies as a bad idea cited reasons such as the policies going on too long, political motivations, impact on the economy, and impeding personal choice. The survey suggests that maintaining public support for outbreak response policies can be achieved by focusing on at-risk populations, communicating clear timeframes, and considering broader economic and societal impacts. The poll also revealed that only 3% of respondents were COVID deniers, but many believed that the virus was not a serious threat to everyone. The survey involved 1,017 adults and was conducted between March 21 and April 2.
HIRING
Group lateral hires take center stage for strategic growth
Group lateral hires are becoming a preferred method for growth among law firms, balancing the drawbacks of individual lateral moves and full-firm acquisitions. Recent industry reports by Law.com highlight notable shifts, including Latham & Watkins losing a team to Willkie Farr & Gallagher in Munich, Burns & Levinson seeing an IP group move to ArentFox Schiff in Boston, and a financial services investigations team from Bryan Cave Leighton Paisner transitioning to Norton Rose Fulbright. These strategic moves allow firms like Paul Hastings and Allen Matkins to quickly enhance their market presence and capabilities by integrating well-established teams. The approach not only facilitates smoother transitions of client portfolios but also leverages the inherent stability and proven track records of group hires. 
WORKFORCE
WestJet mechanics give 72-hour strike notice
WestJet Airlines' mechanics, represented by the Aircraft Mechanics Fraternal Association union, have given the carrier a 72-hour strike notice. The strike, involving approximately 681 aircraft maintenance engineers and other skilled employees, is set to begin by 9 p.m. ET on Thursday. WestJet has stated that the notice does not necessarily mean there will be a travel disruption. The union's announcement followed a request by the carrier for intervention from the Canadian Industrial Relations Board and Minister of Labour. WestJet, owned by Onex Corp, has been striving to address employee demands and narrow the earnings gap with higher-paid peers in the United States.
TRAINING & DEVELOPMENT
Walmart penalized by New Jersey over in-store pricing practices
Walmart has agreed to pay $1.64m in a settlement with New Jersey over charges that its 64 stores in the state employed illegal pricing practices that made it hard for consumers to comparison-shop. New Jersey is one of nine U.S. states that requires grocery retailers to display prices using standard, easy-to-understand measurements such as pounds and quarts. In the first quarter of 2023, Walmart was found to have more than 2,000 incorrect measurements, sometimes in the same category. It did not admit wrongdoing, but said it "takes seriously its obligations to provide accurate unit prices to enable customers to comparison-shop." Walmart also agreed to improve employee training and randomly screen items to ensure it displays proper measurements.
INTERNATIONAL
Amazon workers in U.K. to be balloted on union recognition
GMB union officials are set to enter Amazon's Coventry fulfilment site in the U.K. for the first time today to hold meetings with the 3,000 workers to try and win their vote. The ballot process could see Amazon recognise a trade union in the U.K. for the first time. GMB needs 40% of workers to vote in favor of wanting a union to represent them. Amazon will ask staff to attend meetings to hear the company's counter argument. The company said postal ballot papers would be sent out on 3 July with workplace voting starting on 8 July, lasting for six days. GMB said the result of the ballot would be announced on 15 July. Amanda Gearing, GMB senior organizer, said: “They [Amazon] are a multi-billion-pound global company investing huge energy to resist efforts by working class people in Coventry to fight for a better life." A spokesperson for Amazon said: “Our employees have the choice of whether or not to join a union. They always have. Across Amazon we place enormous value on having daily conversations and engagement with our employees. It’s a strong part of our work culture. We value that direct relationship and so do our employees.”
Pilots are concerned about a lack of air traffic control at Australian airports
Concerns are growing among pilots in Australia as a shortage of air traffic controllers leaves airport towers unstaffed, forcing passenger jets to operate without guidance. Darwin Airport, a major gateway for carriers like Qantas and Virgin Australia, currently has no overnight air traffic control services. This has led to more than a dozen flights arriving or departing with minimal guidance from the ground. Pilots argue that landing without direction from a tower removes a crucial layer of security. The shortage of air traffic controllers is a global issue that has been exacerbated by the pandemic. In Australia, the situation has prompted concerns about mid-air collisions and the need for additional regulatory oversight of Airservices Australia.
Albert Heijn takes measures to reduce aggression against its employees
Dutch supermarket chain Albert Heijn is tightening its house rules to address the increasing aggression, violence, and nuisance faced by staff. The company receives around a thousand reports annually about staff being verbally abused, spat on, or physically assaulted. To make it harder for aggressive customers to track down its employees on social media, Albert Heijn will no longer require them to wear name tags. Instead, staff will wear tags stating "We are Team Albert Heijn." The supermarket chain says it will also expand its house rules to include messages such as "Treat our colleagues with respect" and "Filming is not allowed here." Albert Heijn has been offering resilience training to its employees and has launched a campaign encouraging them to discuss incidents with each other and file reports. The move follows similar actions taken by other Dutch supermarkets, including Dirk equipping staff with body cameras and Jumbo implementing extra measures against shoplifting.
Paytm employees allege forced resignations, no severance pay, and informal processes
Several former and current employees of Indian multinational financial technology company Paytm have raised concerns about forced voluntary resignations, no severance pay, and demands for the return of retention and joining bonuses. Some of the employees are facing imminent job cuts and have unsuccessfully bargained for pay cuts instead, and Paytm is allegedly asking employees to "voluntarily resign." Paytm is also demanding the return of joining and retention bonuses, which were not mentioned in offer letters. One employee alleged that Paytm did not formally communicate the restructuring or job losses and warned staff against recording HR meetings. "The calls with HR are labelled as 'connect' or 'discussion'. There is no formal documentation of any kind," the employee alleged. One Paytm employee has already filed a complaint with the labor ministry, while others are seeking a fair exit process and are consulting lawyers. Paytm denies the allegations and claims to support employees during the transition and is honouring full notice periods and processing due bonuses. The job cuts are reportedly a result of the Indian central bank's decision to shutter Paytm's financial arm and wallets business.
OTHER
China's next-gen sexbots powered by AI are about to hit the shelves
Chinese sex robot producer Starpery is developing next-generation sexbots that can interact vocally and physically with users. The bots, powered by AI models and equipped with sensors, will be able to react with both movements and speech, with a focus on emotional connection. Starpery CEO Evan Lee said: “We are developing a next-generation sex doll [sic] that can interact vocally and physically with users, with prototypes expected by August this year. Technological challenges remain, particularly in achieving realistic human interaction . . . While simple dialog is easy, creating interactive responses involves complex model development by specialised software companies. Traditional dolls, supported by a metal skeleton and a silicone exterior, are limited to simple responses and lack the expressive capabilities needed to engage with a human. The new generation of sex dolls, powered by AI models and equipped with sensors, can react with both movements and speech, significantly enhancing user experience by focusing on emotional connection rather than just basic conversational abilities.” Despite being a conservative society, China has the largest market for sex dolls, surpassing the combined sales of the U.S., Japan, and Germany. Starpery also plans to develop robots capable of household chores to help people with disabilities and providing aged care. 
 


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