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North American Edition
21st October 2024
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THE HOT STORY
Boeing strike: Union votes on new deal
The International Association of Machinists and Aerospace Workers has announced a ratification vote for a new Boeing proposal scheduled for Wednesday. The offer includes a 35% pay increase over four years, up from the previous 30%, and raises the ratification bonus to $7,000 per worker. While the proposal does not restore a traditional pension plan, it enhances 401(k) contributions and retains performance bonuses at a minimum of 4% of pay. Union leaders Jon Holden and Brandon Bryant stated: “The fact the company has put forward an improved proposal is a testament to the resolve and dedication of the frontline workers.” The strike, which began on September 13, has affected production of several Boeing aircraft models and led to significant layoffs. Boeing's average annual pay for machinists is currently $75,608. Forbes looks at how the off of a 35% pay rise highlights significant shifts in the American labor market, noting that as talent competition intensifies and labor shortages persist, businesses like Boeing are grappling with wage inflation.
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WORKFORCE
U.S. job exodus to overseas markets fuels economic inequality and wage pressure
Over the past two decades, millions of American jobs have shifted overseas, with a significant impact on the U.S. economy. Since 2001, the U.S. trade deficit with China alone has led to the loss of 3.82m jobs, with manufacturing sectors hardest hit. Meanwhile, India has absorbed numerous white-collar positions in software and services, and Mexico has become a prime destination for American expatriates. Approximately 300,000 American jobs are offshored each year, contributing to economic uncertainty, wage stagnation, and diminished social mobility. The effects are uneven, with Black and Hispanic workers disproportionately affected by job losses in manufacturing. As industries pivot to outsourcing in sectors like IT and business processes, the global outsourcing market is expected to grow significantly, reaching $812.7bn by 2029. This shift has led to lower-wage service jobs replacing well-paid manufacturing roles, reshaping the American labor market and amplifying income inequality.
Starkey shines a light on disability employment, urges employers to get involved
As part of National Disability Employment Awareness Month, organizations like Starkey are highlighting the importance of providing job opportunities for people with disabilities. The U.S. Department of Labor reports that only 22.3% of people with disabilities were employed in 2023. Starkey, an organization dedicated to helping disabled individuals gain independence, emphasizes the significance of matching job seekers with supportive employers. Jamie Reed of Starkey highlights how job coaches help individuals overcome social and transportation barriers to achieve employment. Masha Moore, a participant in Starkey’s program, shared how her job has boosted her confidence and social skills, while her employer praised her dedication. Starkey encourages employers to explore opportunities to support disabled workers, offering potential tax credits as an added incentive.
Kroger's merger: A game changer?
The potential merger between Kroger and Albertsons could reshape the grocery landscape, creating a retail giant with approximately 4,400 stores and 640,000 employees. Both companies argue that the merger is essential to compete with major players like Walmart and Amazon, promising lower prices and job preservation. However, labor unions, including the United Food and Commercial Workers International Union, oppose the deal, fearing it will reduce competition and lead to job losses. Carol McMillian, a bakery manager at King Soopers, expressed concern, stating, “The last divestiture like this lost a lot of jobs for people.” Many workers are anxious about their job security as the merger progresses through regulatory scrutiny.
RETENTION
Accounting firms face talent retention woes
The accounting profession is grappling with significant challenges in talent acquisition and retention. Despite increasing salaries and the integration of artificial intelligence (AI) to address staffing shortages, experts emphasize that a fundamental shift is necessary to attract the next generation. Current average starting salaries for accounting majors are around $65,000, which lags behind those in technology and finance. Paul Miller, a CPA and managing partner at Miller & Company, said: "The industry as a whole is not attractive to the younger population." Additionally, leaders are exploring how to effectively implement AI without displacing entry-level roles. Shagun Malhotra, chief executive of Skystem, suggested that enhancing accounting education to focus more on technology could make the field more appealing. Elizabeth Beastrom, president of Thomson Reuters Tax & Accounting, highlighted the issue of burnout due to excessive workloads, saying: "We've asked tax and accounting professionals to do too much with too few resources for too long."
HIRING
Nearly three-quarters of schools experience trouble filling teacher vacancies
A nationally-representative survey released Thursday by the U.S. Department of Education’s National Center for Education Statistics found that 74% of public schools said they had a difficult time filling one or more vacant teaching positions before beginning the 2024-25 school year. The School Pulse Panel survey of 1,392 schools found that a “lack of qualified candidates” and “too few candidates” applying for open positions remained the most common challenges public schools said they faced in filling vacant positions. The trickiest positions to fill were in general elementary teaching, special education, and English language arts. Last year’s data showed improving sentiment among public schools about their staffing levels. Less than half, or 45%, said they felt their school was understaffed — down from 53% feeling understaffed entering the 2022-23 academic year. 
TECHNOLOGY
States brace for AI regulation surge
In 2025, state legislatures are poised to intensify their efforts to regulate artificial intelligence (AI) following a year of initial legislative actions. According to BSA|Software Alliance, at least 407 AI-related bills were introduced across 41 states in 2024, a significant increase from 191 bills in 2023. Noteworthy developments include Colorado's comprehensive AI law, which mandates impact assessments and transparency in AI training data. California remains a focal point for AI regulation, with Hayley Tsukayama from the Electronic Frontier Foundation noting: “The workshopping on AI in California is happening on a scale and intensity that I haven't seen happen in other states.” As states like Texas and New York prepare to introduce their own legislation, the momentum for AI regulation is expected to grow, with lawmakers likely to draw inspiration from Colorado's model.
AI impacts tasks, not job titles, LinkedIn CEO says
In a recent interview, Ryan Roslansky, chief executive of LinkedIn, emphasized the importance of adapting to an evolving job market influenced by artificial intelligence (AI). He advised professionals to view their roles as a collection of tasks rather than fixed titles, saying: “Professionals can have more agency amidst this transition by thinking of their job not as a title, but as a set of tasks.”  He highlighted that the skills required for jobs have changed by nearly 40% since 2016 and are expected to rise to over 70% by 2030.
CORPORATE GOVERNANCE
CVS replaces CEO amid slide in profits
CVS Health has announced that David Joyner will take over as chief executive, replacing Karen Lynch. Joyner has been president of CVS Caremark, the company’s pharmacy-benefit manager, as well as an executive vice president of CVS. Roger Farah, chairman of CVS's board of directors, has also become executive chair. CVS is making the changes after repeatedly cutting its forecasts for this year’s financial performance. Meanwhile, employees at seven CVS pharmacies in Southern California have gone on strike for better pay and health care and to protest what they say is bad-faith contract bargaining by the company.
Starbucks names new marketing executive
Starbucks has announced that it has hired food marketing veteran Tressie Lieberman from Chipotle to become its new executive vice president and global chief brand officer. Starbucks said she will be in charge of marketing, product development, creative and data analytics and insights. Starbucks chief executive Brian Niccol said last month that marketing was a central plank of his vision for the chain, which has suffered from slumping sales in recent quarters. "It’s time to tell our story again and reintroduce Starbucks to the world. Tressie is the perfect person to help us do that," Niccol said.
LEGAL
Text message deletion raises concerns
In a recent legal testimony, Edward Farley, a former campaign manager for Massachusetts Treasurer Deborah Goldberg, revealed that Goldberg repeatedly requested the deletion of text messages related to Shannon O'Brien, the Massachusetts Cannabis Control Commission Chair. The case raises major concerns regarding public records laws. Justin Silverman, executive director of the New England First Amendment Coalition, stated: “Text messages are subject to the public records law, and there are certain retention policies that govern when they can and cannot be deleted.” O'Brien was dismissed amid allegations of racially insensitive language and bullying, and she is currently appealing the decision. Farley expressed willingness to have a forensic expert retrieve the deleted messages, challenging Goldberg to do the same.
INTERNATIONAL
Company accidentally hired North Korean cyber criminal
Sky News reports on a company that unwittingly hired a North Korean hacker posing as an IT contractor, who quickly accessed sensitive data and exfiltrated it leading to a ransom demand. Rafe Pilling, director of threat intelligence at Secureworks, which investigated the incident, said the tactic was a new one for the North Korean regime, which was already trying to sneak its workers into U.K. companies and marked "a serious escalation" of risk for companies. "No longer are [the fake workers] just after a steady paycheck, they are looking for higher sums, more quickly, through data theft and extortion, from inside the company defences," he said.
 


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