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North American Edition
26th July 2024
 
THE HOT STORY
Uber, Lyft and others win California ruling to treat drivers as contractors
The California Supreme Court has upheld Proposition 22, allowing gig economy companies including Uber and Lyft to classify drivers as independent contractors. The court rejected claims that the law is unconstitutional, stating that it does not interfere with lawmakers' authority over workers' compensation. The ruling marks the end of a long legal battle and means that delivery and ride-hailing services will continue to operate under the current classification. The decision has significant implications for over 1m drivers in California and may have ripple effects on drivers in other U.S. states. The law, which passed with 59% of the vote, grants limited benefits to drivers but exempts companies from providing full-fledged employee rights. Labor groups expressed disappointment but highlighted other avenues for workplace protections.
LEGAL
Massachusetts lawmakers approve bill requiring salary range disclosure for job postings
Massachusetts lawmakers have approved a bill that would require businesses with 25 or more employees to disclose a salary range when posting a job. The legislation would also protect a worker's right to ask their employer for the salary range for a position when applying for a job or seeking a promotion. If signed by Governor Maura Healey, the bill would make Massachusetts the 11th state to mandate pay transparency. The bill builds on a 2016 state law that prohibited wage discrimination based on gender. It also requires businesses with more than 100 employees to share their federal wage and workforce data reports with the state Executive Office of Labor and Workforce Development. The agency would then compile and publish aggregated wage and workforce data to help identify gender and racial wage gaps by industry. According to supporters of the legislation, the gender wage gap in Greater Boston in 2023 was 21 cents, with Black women facing a 54-cent wage gap and Hispanic and Latina women facing a 52-cent wage gap. Asian women face a 19-cent wage gap. "With the passage of this legislation, Massachusetts is now one step closer to ensuring equal pay for equal work," said Democratic House Speaker Ronald Mariano. "Pay transparency will not only make our workplaces more equitable, it will also make Massachusetts more competitive with other states," he added.
Landmark N.J. temp worker law upheld in court challenge
A federal appeals court has upheld a landmark law giving temporary workers in New Jersey sweeping new protections and rights. The law, known as the "Temp Worker Bill of Rights," fully took effect on July 1. The law was inspired by an investigation that found some low-paid temp workers being exploited and mistreated by temp agencies. The court's decision is a blow to business groups and staffing agencies that sought to stop the law's implementation. The law requires agencies to provide temp workers with basic information about their work, pay rate, schedule, and sick time. It also eliminates many fees deducted from workers' paychecks and guarantees them at least minimum wage. Supporters say the law is critical for temp workers, many of whom are people of color or first-generation Americans. The New Jersey Business and Industry Association expressed its disappointment with the decision but noted that a separate claim is pending before the district court.
PwC allegedly pushed out principal to deprive her of benefits
A former PwC principal has claimed in a lawsuit that she repeatedly had credit taken for her work, endured “abusive and disrespectful” conduct and was pushed out of her role one day before her five-year work anniversary, meaning she missed out on certain job protections and the vesting of her 401(k) account. The plaintiff, a 55-year-old Asian American woman, who filed the lawsuit in the U.S. District Court for the Southern District of New York, also alleged she was underpaid in comparison to her White, male counterparts. The lawsuit, which PwC has described as "meritless," requests relief in the form of compensatory, liquidated and punitive damages, equitable and injunctive relief, and attorneys’ fees and costs.
HEALTH & SAFETY
Amazon wins workplace safety case in Washington state
A Washington state judge has ruled in favor of Amazon in a workplace safety case, dismissing four serious safety violations that the e-commerce giant had been charged with. The judge stated that Amazon presented evidence of having a robust safety and health program and effectively communicated safety policies to its employees. The case stemmed from allegations by state labor regulators that Amazon had created an unsafe working environment, putting warehouse staff at risk of injury. The state argued that Amazon's warehouses failed to comply with ergonomic science rules, but the judge found that the state's argument was not convincing. Former Occupational Safety and Health Administration (OSHA) director Debbie Berkowitz expressed disappointment with the decision and stated that Amazon fails to take responsibility for the injuries caused by the jobs. OSHA is also investigating alleged ergonomic injuries at Amazon.
WORKFORCE
Weekly jobless claims dip to 235,000
Fewer Americans filed for unemployment benefits last week, but applications remained at recently elevated levels. The Labor Department said that claims in the seven days to July 20th dropped 10,000 to 235,000. Economists polled by Reuters had forecast 238,000 claims for the latest week. The four-week average of claims rose 250 to 235,250, while continuing claims, reported with a one-week lag, slipped 9,000 to a seasonally adjusted 1.851m. The four-week moving average for continuing claims rose to 1.853m, the highest level since December 2021. "[T]he claims data over the last several weeks have been subject to a variety of seasonal factors, but looking past the noise, the claims data are consistent with a labor market that is cooling but not collapsing," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.
Nike's workforce shrinks by 5% in one year, annual report shows
Nike's annual report filed with the Securities and Exchange Commission reveals that the company's workforce has decreased by 5% compared to the previous year. This translates to 4,300 fewer employees, with a current total of 79,400 workers. The report also shows that Nike chief executive John Donahoe's compensation decreased by 11% in fiscal 2024, to $29.1m. The company's executive compensation is tied to its performance, which has been affected by falling sales and a 20% one-day decline in stock. Despite the pay cut, Donahoe remains one of the highest-paid CEOs in Oregon. Nike's CEO pay ratio, measuring Donahoe's pay relative to the median Nike worker, is now 759 to 1. Investors will have a nonbinding vote on executive compensation at the upcoming annual shareholder meeting.
DIVERSITY, EQUITY & INCLUSION
Puerto Rico bans discrimination against those who have diverse hairstyles
Puerto Rico's governor has signed a law that prohibits discrimination against people wearing Afros, twists, braids, and other hairstyles in the racially diverse U.S. territory. The move was celebrated by those who had long demanded explicit protection related to work, housing, education, and public services. "It's a victory for generations to come," said Welmo Romero Joseph, a community facilitator with the nonprofit Taller Salud. Puerto Rico's laws and constitution already protect against discrimination, but this new law sends a strong message that individuals can reach positions of power without having to change their identity. The law was prompted by several Puerto Ricans sharing examples of discrimination they faced, including job offers conditional on haircuts. Puerto Rico's population of 3.2m includes over 1.6m people who identify as being of two or more races, with nearly 230,000 identifying solely as Black. While the law is praised, measures are needed to ensure its enforcement. Similar laws have been passed in at least two dozen states on the U.S. mainland. A federal version of the law was passed by the U.S. House of Representatives in 2022 but failed in the Senate. Democratic lawmakers have reintroduced the legislation.
CrowdStrike hit with complaint over 'unlawful' diversity-hiring initiatives
Cybersecurity firm CrowdStrike has been hit with a complaint over its diversity hiring scheme. Conservative legal action group America First Legal (AFL) alleges that CrowdStrike favors women and minorities for jobs and promotions, which it claims prioritizes sex and skin color over talent. AFL has filed complaints with the Equal Employment Opportunity Commission (EEOC) against various companies, including CrowdStrike, for their diversity schemes. The complaint against CrowdStrike highlights the company's commitment to building a diverse workforce through mentorship and internal development programs for women and minorities, while allegedly neglecting white men. CrowdStrike was responsible for a software update bug that crashed millions of computers worldwide last week. Critics claim that diversity hiring schemes can lead to inefficiency and harm the quality of products and services.
CORPORATE
Albertsons and Kroger agree to pause merger
Kroger and Albertsons have agreed to temporarily halt their proposed $24.6bn merger until after a Colorado court decides an antitrust lawsuit seeking to kill the deal. The companies agreed to the temporary injunction in a state lawsuit filed by Colorado Attorney General Phil Weiser. The state sued to block the merger in February, saying the transaction would reduce competition and harm consumers, workers and suppliers. The Federal Trade Commission has separately filed a lawsuit in federal court in Oregon opposing the merger. Kroger said Thursday it agreed to the deal to focus on merits of the antitrust case itself. The pact scraps the need for a previously scheduled August 12th hearing to fight over a preliminary injunction that would bar the merger from taking place until the lawsuit is resolved. In April, Kroger and Albertsons agreed to sell more than 160 additional stores as part of a divestiture package aimed at appeasing competition regulators. 
INTERNATIONAL
Top Chinese tech firms pursue AI graduates overseas amid shortage of top tech talent
China's biggest tech companies, including Baidu, Tencent Holdings, and ByteDance, are conducting global recruitment drives to attract top talent in cutting-edge technologies including artificial intelligence (AI), semiconductors, and autonomous driving. Baidu's campaign focuses on expertise in large language models (LLMs), computer vision, self-driving, and integrated circuit design. Tencent is also targeting tech students worldwide in fields like LLMs, game engines, robotics, and quantum computing. ByteDance is looking for PhD students specializing in robotics, cybersecurity, and hardware. The companies have promised “competitive compensation” and “comprehensive training” in a bid to lure the world's best tech talent, which is also being sought by western tech giants and academia.
Bangladesh garment sector reopens after protest crackdown
Garment factories and banks have reopened in Bangladesh after authorities eased a curfew imposed to contain deadly clashes sparked by student protests over civil service employment quotas. Last week's violence killed at least 186 people, according to an AFP count of victims reported by police and hospitals, during some of the worst unrest of Prime Minister Sheikh Hasina's tenure. The garment industry generates $50bn in yearly export revenue for Bangladesh, employing millions of young women to sew clothes for H&M, Zara, Gap and other leading international brands. "All garment factories have reopened across the country today," a spokesperson for the Bangladesh Garment Manufacturers and Exporters Association said.
Coal miner wins landmark legal victory in Australia and multi-million dollar payout for black lung
A coal miner in Australia has won a landmark legal victory and a multimillion-dollar payout after developing black lung due to his employers' negligence. Craig Keogh, a machine operator at mines in New South Wales (NSW) and Queensland, became the first Australian to win a black lung case at trial. The Dust Diseases Tribunal of NSW found the mines negligent in exposing Keogh to coal dust. Keogh, who was diagnosed with pneumoconiosis in 2018, was awarded A$3.2m in damages. The decision is said to set a strong precedent for coal miners in similar circumstances to receive compensation. Keogh said his main motivations for the legal action were to ensure others with similar ailments can get compensation and to drive the industry to improve safety standards. Judge David Russell accepted that Keogh will never work again due to his respiratory and psychiatric health. Downer Mining, CPB Contractors, and Campbell Mining Services are all responsible for the payout.
OTHER
U.S. students need extra semester to catch up post-pandemic, study says
Academic progress is heading in the wrong direction in the years since the pandemic, according to new research published Tuesday by the NWEA, which claims that the average U.S. student needs an additional 4.8 months of school in reading and 4.3 months in math to catch up to pre-pandemic achievement levels. The report analyzes recent test score data from third- to eighth-grade students in 22,400 public schools nationwide. Researchers compared the 2023-24 MAP Growth test scores from about 7.7m students in grades 3-8 from about 22,400 public schools to the data of 11m similar students in grades 3-8 in the pre-COVID years between 2016 and 2019. Marginalized students continue to be the most likely to be behind, the research shows. "It's disheartening to say the least," said Karyn Lewis, one of the authors of the study and the director of research and policy partnerships at NWEA, adding that the widening achievement gaps in sixth-, seventh- and eighth-grade reading levels are especially concerning. The research shows students' reading achievement in those grades dropped below pre-pandemic averages.
 


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