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6th September 2024
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THE HOT STORY
Many LGBTQ+ workers are ready to boycott companies that don't support DEI
Recent actions by companies like Ford and Lowe's to dismantle their diversity, equity, and inclusion (DEI) initiatives have raised concerns about alienating LGBTQ+ employees. According to a survey by the Human Rights Campaign (HRC), nearly 80% of LGBTQ+ respondents indicated they would boycott companies that rolled back DEI policies. Furthermore, 20% stated they would consider quitting if their employer made such changes. The survey highlights that over 72% of participants felt their workplace experience would suffer due to these rollbacks. Despite some companies facing pressure to eliminate DEI programs, the data suggests that LGBTQ+ employees are closely monitoring corporate support for their community, with 93% believing that a perfect score on the Corporate Equality Index reflects strong support. As the backlash against DEI initiatives grows, it remains to be seen how companies will respond to the voices of their LGBTQ+ workforce.
CULTURE
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RETENTION
Forbes 2024 'Best Employers' list
Forbes has released its annual “America's Best Employers By State” list to highlight which organizations are doing what it takes to retain their employees and keep them satisfied. To compile the rankings, Forbes collaborated with Statista, surveying over 160,000 U.S. employees from companies with at least 500 workers. Participants evaluated their companies and provided recommendations. “Over the last few months, employee retention has increased as workers have chosen stability in the face of global uncertainty,” observes Becky Wallace, head of people at LearnUpon, a Dublin, Ireland based corporate learning platform. “The declining job market, dubbed the ‘Big Stay’ by the [U.K.'s] CIPD [the Chartered Institute of Personnel and Development], is a huge win for HR leaders who have been working hard to retain staff following years of increased attrition.”
HIRING
Canada proposes ban on ghosting
Proposed legislative changes in Ontario aim to prohibit ghosting by employers, requiring them to respond to job applicants they have interviewed. Shena Mistry, a career coach and founder of Own What's Next, emphasised that ghosting is "unprofessional" and highlighted the importance of open communication between recruiters and candidates. The changes to the Employment Standards Act (ESA) would mark a significant shift in Canadian hiring practices, ensuring that larger employers maintain transparency with applicants. Mistry noted that employers should treat candidates as they would customers, especially in an era where social media amplifies the consequences of unprofessional behaviour. She suggested that candidates follow up politely if they experience ghosting, but ultimately, they must be prepared to move on.
TECHNOLOGY
U.S., U.K. and European Union members sign first international AI treaty
The first legally binding international AI treaty, known as the AI Convention, has been signed by countries including European Union members, the United States, and Britain. The treaty, which has been in development for years, aims to address the risks associated with AI while promoting responsible innovation. Shabana Mahmood, Britain's justice minister, said: "This Convention is a major step to ensuring that these new technologies can be harnessed without eroding our oldest values, like human rights and the rule of law." The AI Convention focuses on protecting the human rights of individuals affected by AI systems and is distinct from the EU AI Act, which regulates AI within the EU internal market. The Council of Europe, an international organization with 47 member countries, initiated the framework for this treaty in 2019.
WORKPLACE
Baltimore Police to pilot monthly stipends for childcare expenses
The Baltimore Police Department is set to launch a pilot program in January that will provide financial stipends to 100 employees to assist with childcare expenses. Each participant can receive up to $250 monthly, totaling $3,000 annually. The program is aimed at staff with children under 13 or those with special needs. Mayor Brandon Scott described the initiative as a “game changer” for families facing financial challenges related to childcare. The program, funded by a $130,000 contract with WeeCare Inc., is seen as a vital tool for retention and recruitment, and addressing the department's current vacancies. Scott expressed hopes for future expansion beyond the police department, emphasizing that both sworn and non-sworn employees are eligible. A lottery system will determine participants.
LEGAL
Boycott of Beverly Hills hotels gets boost from Hollywood figures
Hollywood writers, editors, and producers are supporting a union-led boycott of two hotels in Los Angeles due to ongoing labor disputes. The boycott, initiated by Unite Here Local 11, targets the Cameo Beverly Hills and the Beverly Hills Marriott, where negotiations for workers' contracts have stalled. Union spokesperson Maria Hernandez said: “Beverly Hills Marriott refused to agree to a fair process to allow workers to organize.” The union has also filed a wage theft complaint against the Cameo, alleging that housekeepers were not compensated for pre-shift work and were denied breaks. The boycott gained momentum over Labor Day, with over 30 Hollywood figures, including Grant Sloss and Michael Schur, pledging their support. This action follows a year of strikes across Southern California hotels, which resulted in significant wage increases for workers. Remington Hospitality, which operates the hotels, has not addressed the union's allegations.
U.S. judge says X must face class action age bias claims over mass layoff
A federal judge in San Francisco has permitted approximately 150 older workers, laid off by social media platform X during Elon Musk's acquisition, to sue for age discrimination as a class. U.S. District Judge Susan Illston said that the case raises a common question regarding the impact of the 2022 mass layoffs on employees aged 50 and above. Plaintiff John Zeman, a former communications department employee, alleged that X laid off 60% of workers aged 50 or older, compared to 54% of younger employees. Illston observed: "Plaintiff has shown beyond mere speculation that Twitter may have discriminated against older employees." The ruling allows Zeman's legal team to notify potential class members about the lawsuit. X has denied any discrimination, asserting that the layoffs were not age-related. This lawsuit is part of a series of legal challenges X faces following Musk's decision to reduce the workforce by over half in 2022.
DIVERSITY, EQUITY & INCLUSION
Williams-Sonoma faces diversity backlash
Home furnishing giant Williams-Sonoma is facing a complaint from America First Legal (AFL) regarding its diversity, equity, and inclusion (DEI) hiring practices, which the group claims amount to "unlawful discrimination." The complaint has been submitted to the Equal Employment Opportunity Commission (EEOC). The company's recent annual report says that a DEI push has led to women making up 68% of its workforce, and 41% hail from an 'ethnic minority group.' AFL's lawyer, Reed Rubinstein, stated that "woke corporations' toxic, divisive, and unlawful DEI policies" threaten legal equality. The controversy surrounding DEI initiatives has intensified, particularly following the Supreme Court's ruling against affirmative action in university admissions. An Ipsos poll indicated that 61% of voters see DEI as beneficial, yet a Gallup survey revealed only 38% support businesses taking stances on current events.
WORKFORCE
Latest jobless claims calm fears of labor market deterioration
The number of Americans filing new applications for jobless benefits declined last week as layoffs remained low, helping to allay fears that the labor market was deteriorating. The Labor Department said Thursday that claims in the seven days to August 31st totaled 227,000, 5,000 down from the previous week. Economists polled by Reuters had forecast 230,000 claims for the latest week. Continuing claims, reported with a one-week lag, fell 22,000 to 1.838m. The weekly figures preceded the government's August employment report, to be released later today, which will help the Federal Reserve decide whether to cut interest rates this month. "There are signs of a slowdown in hiring with fewer job openings, but until payroll jobs actually decline there is no recession," said Christopher Rupkey, chief economist at FWDBONDS. "At the moment, it does not look like the Fed is behind the curve."
Labor Department revises Q2 productivity upward
The productivity of U.S. workers rose by a revised 2.5% annual rate in the second quarter, according to the Labor Department, up from a previously-reported 2.3% surge. Unit labor costs rose by 0.4% compared to the previously reported 0.9% advance. The upward revision was in line with economists' expectations. Productivity increased at a 0.4% rate in the first quarter, and grew at an unrevised 2.7% pace from a year ago. Unit labor costs - the price of labor per single unit of output - rose at a 0.4% rate in the April-June quarter. Compensation rose at a 3.0% rate last quarter, revised down from the previously estimated 3.3% pace.
U.S. port workers meet on wages, issue new strike threat
The International Longshoremen's Association (ILA) has convened in New Jersey to discuss wage demands amid a looming strike that could disrupt major U.S. ports. Negotiations with the United States Maritime Alliance (USMX) have stalled since June. The union is seeking a nearly 80% wage increase over six years. ILA President Harold Daggett warned: “there's a real chance we won't have a new agreement in place,” indicating a potential strike on October 1, 2024. The National Retail Federation has urged the White House to intervene, saying that a strike would significantly impact retailers and the economy. A work stoppage could lead to substantial shipping delays.
REGULATION
U.K. regulator clears Microsoft over ties with Inflection AI
The U.K.'s Competition and Markets Authority (CMA) has cleared Microsoft's hiring of some former employees of Inflection AI and its partnership with the start-up, saying that the deal did not require further investigation. The competition regulator launched a probe in July to look at whether the deal might lead to competition concerns in the U.K. because both companies develop and supply consumer chatbots. The Wall Street Journal says the decision allows Microsoft some breathing space as the company faces more scrutiny in the U.K. and the U.S. British officials are still considering whether Microsoft’s partnership with ChatGPT maker OpenAI should be considered a de facto merger.
INTERNATIONAL
VW says less time for turnaround amid clash with workers over cuts
Volkswagen's finance chief, Arno Antlitz, has warned that the core VW brand has "one, maybe two" years to implement significant cost reductions, including potential plant closures in Germany, if the brand is to survive the shift to electric cars. During a meeting with 16,000 workers, he highlighted a shortfall of about 500,000 cars, equivalent to two plants, due to a shrinking market post-pandemic. Works Council chief Daniela Cavallo expressed that management had "massively damaged trust" and urged CEO Oliver Blume to prioritise job security over costly software partnerships. Amidst rising economic challenges in Germany, Labour Minister Hubertus Heil emphasized the need for the company to secure employment while the government considers tax reductions to stimulate demand for electric vehicles. Volkswagen aims for a 6.5% profit margin by 2026, up from 2.3% in the first half of this year, but faces pressure from unions to address plant closure threats before wage negotiations in October.
Young staff lead the U.K.'s return to the office
Young Londoners are leading the charge in returning to the office, while older workers' preference for remote work is contributing to the U.K. lagging behind global rivals. In a study by the think tank Centre for Cities, London had a lower office attendance rate than Paris, New York, Singapore and Sydney. However, the U.K. capital was ahead of Toronto. Gen Z workers in London, aged 18 to 24, are present in the office an average of 3.1 days a week, compared to just 2.5 days for those aged 35 to 44. Attendance slightly increases to 2.7 days for workers aged 55 and over. Younger workers may prefer office settings because 43% of them report working best there, likely due to having less space and privacy at home. Andrew Carter, chief executive of Centre for Cities, said: “The standard narrative is young workers are shirkers, but actually [they] are back in the office and it’s the middle or more experienced workers that tend to be less in the office.” Despite 95% of workers acknowledging the benefits of office work, such as collaboration and relationship-building, attendance remains below pre-pandemic levels in all surveyed cities.
Virgin Australia 'may have invaded employee's privacy by accessing hotel footage'
Dylan Macnish, a cabin crew member at Virgin Australia, has had his dismissal overturned by the Fair Work Commission after the airline accessed hotel CCTV footage and swipecard records revealing he organized a hookup via Grindr. The Commission's ruling highlighted concerns over workplace surveillance, with legal experts noting potential breaches of privacy under the Privacy Act. The case raises significant questions about the balance between employee privacy and employer oversight, particularly in safety-sensitive roles such as flight attendants. Fair Work Commissioner Pearl Lim criticized Virgin's investigation methods, emphasizing that employees have a right to privacy during work-related trips. The ruling has sparked broader discussions in Australia about the extent of surveillance in workplaces, with unions advocating for clearer boundaries.
OTHER
U.S. high schoolers’ e-cigarette use down over past five years
U.S. teenagers’ e-cigarette use dropped by two-thirds over the past five years as health regulators cracked down on illegal sales and distribution of the addictive products. The National Youth Tobacco Survey of middle and high school students, conducted by the U.S. Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention, found that about 1.6m school children currently use the devices, a third of the 5m peak seen in 2019. Nearly half a million middle and high school students used nicotine pouches in 2024, about the same number as a year earlier, and more than one in five used them daily, the survey found. Brian King, director of the FDA’s Center for Tobacco Products, said: "Our guard is up. We’re closely monitoring the evolving tobacco product landscapes for threats to public health, particularly when it comes to kids".
 


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