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19th February 2025
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THE HOT STORY
L.A. fast food workers strike in bid for greater scheduling stability
Fast food workers in Los Angeles staged a walkout on Tuesday to advocate for a law that would enhance their scheduling stability. Many workers, like Lizzet Aguilar, a cashier at McDonald's, expressed frustration over inconsistent hours, saying: “This isn't fair. We can't survive on this.” The proposed ordinance, introduced by City Councilmember Hugo Soto-Martinez, aims to extend the Fair Work Week law to cover approximately 50,000 workers at 2,500 fast food restaurants. The law would require employers to provide advance schedules and include paid training for workers. A report from labor researchers at Northwestern and Rutgers revealed that one in four fast food workers is paid below the minimum wage, resulting in an annual loss of nearly $3,500 for these employees. While Los Angeles City Council typically supports worker protection legislation, the approval process can be lengthy.
WORKPLACE TRENDS
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MANAGEMENT
Ford slashes manager stock bonuses to cut costs
According to Reuters, Ford will cut stock bonuses for some middle managers in an attempt to reduce costs. Around 1,650 middle managers out of 3,300 globally will not get stock bonuses. These are usually paid in March, but senior managers have been told to select which half of their middle management will receive them. Ford said the change was meant to incentivize an improvement in employee performance. "We are focused on driving a high-performance culture that recognizes and rewards employees for their business contributions," a Ford spokesperson said. Reuters added that some Ford workers viewed the cuts as a way for the automaker to slim its ranks and they were looking for job openings at other companies.
STRATEGY
Chevron cuts workforce despite profits
Chevron is set to reduce its global workforce by up to 20%, affecting approximately 8,000 employees, following an internal town hall meeting where executives highlighted the company's struggles against competitors. Despite reporting a projected profit of $18.3bn for 2024, down from $24.7bn in 2023, Chevron's leadership acknowledged that the business had become overly complicated and costly. The layoffs come amid a backdrop of stable oil prices and reflect ongoing challenges in the oil industry, including competition and changing market dynamics.
KFC bids farewell to Kentucky
Yum! Brands, the parent company of KFC, has announced the relocation of its U.S. corporate office from Louisville, Kentucky, to Plano, Texas. KFC's history in Kentucky dates back to the 1930s, when its founder Colonel Harland Sanders began selling fried chicken at a service station in Corbin. The decision will affect around 100 KFC employees, with an additional 90 remote workers expected to move within the next 18 months. Yum! chief executive David Gibbs says the move positions the firm "for sustainable growth and will help us better serve our customers, employees, franchisees and shareholders." Louisville Mayor Craig Greenberg expressed his disappointment, saying: "I am disappointed to learn that Yum! Brands will move its KFC employees to Texas - especially since the brand was born here and is synonymous with Kentucky."
WORKFORCE
Neuralink reviewers fired in FDA purge
The U.S. Food and Drug Administration (FDA) has dismissed around 20 employees from its office of neurological and physical medicine devices, impacting the review process for Elon Musk's brain implant company Neuralink. Donald Trump has previously said that Musk will excuse himself from any conflicts of interest between his various business interests and his efforts to cut costs for the federal government. Victor Krauthamer, a former FDA official, expressed his concern, saying: “It's intimidating to the FDA professionals who are overseeing Neuralink's trial.” The cuts may hinder the FDA's ability to efficiently process medical device applications, including those from Neuralink, which is currently testing a brain implant that enables paralyzed individuals to control digital devices through thought.
LEGAL
Utah bans collective bargaining for public workers
Utah Gov. Spencer Cox has signed a law banning collective bargaining for public employees, including teachers, police officers, and firefighters, despite ongoing protests at the state capitol. The law, which critics label anti-labor, will take effect on July 1. Jack Tidrow, president of the Professional Firefighters of Utah, expressed his dismay, saying: “Looks like Utah will become the most anti-labor state in America.” Supporters argue that the law promotes individual freedoms and does not eliminate unions, and allows public employees to organize and advocate for themselves. The Utah Education Association, representing 18,000 educators, criticized the decision, claiming lawmakers have “ignored the voices of thousands.” The bill's sponsor, Rep. Jordan Teuscher, said that the law upholds democratic principles.
Universal sued for wage theft
Tonia Roberts, a food runner at Universal CityWalk’s Cowfish Sushi Burger Bar, has filed a lawsuit against Universal, alleging wage theft through improper use of Florida's tip credit system. Roberts claims she was underpaid due to excessive non-tip-producing side work, which constituted over 20% of her weekly hours. Universal, a major employer in Central Florida, has faced similar accusations in the past, including a $1.8m payout in 2016 for underpaying workers at Universal Studios Hollywood. The case highlights ongoing issues of alleged wage theft in the hospitality industry, where enforcement of minimum wage laws is often lax.
CORPORATE
Delaware lawmakers propose new bill to stem corporate defections
Lawmakers in Delaware have proposed changes to the state's corporate law to help shield companies controlled by founders from investor lawsuits amid a string of high-profile defections. Two-thirds of S&P 500 companies are incorporated in the state, and its corporate law system has become the model for many other U.S. jurisdictions. But Tesla, SpaceX, TripAdvisor and Dropbox are among companies to have moved to states including Nevada and Texas, and Facebook owner Meta is also said to be weighing a departure. Monday's bill details steps that corporate boards could take to insulate directors and controlling shareholders from litigation over alleged conflicts, and it would also limit the internal records that shareholders can access in order to build their cases. Corporate law expert Ann Lipton said the bill would make shareholder litigation in Delaware "dramatically less successful."
DIVERSITY, EQUITY & INCLUSION
U.K. HR chiefs push back on DEI shift
At a recent dinner for HR leaders from major U.K. companies, there was a palpable sense of anger regarding President Donald Trump's actions against diversity, equity, and inclusion (DEI) in the U.S., writes the Sunday Telegraph's Lucy Burton. Attendees expressed their strong resolve, with one saying: "We need to take a stand against this." While U.S. firms are retracting their DEI initiatives, British HR chiefs are committed to maintaining their diversity targets. Tensions are rising between U.S. and U.K. branches of global companies, with some U.K. managers opting to rebrand DEI efforts as "culture and inclusion" to continue their work. Heeral Gudka, a consultant on diversity strategies, noted that the current climate provides boards with "a gold-plated reason" to cut DEI costs. Despite the challenges, many U.K. executives are determined to make independent decisions regarding DEI, regardless of external pressures.
INTERNATIONAL
Indian labor ministry steps in over Infosys
India's Ministry of Labour and Employment has directed Karnataka's state labor ministry to address a dispute following Infosys's recent termination of employees at its Mysuru campus. The intervention follows complaints from the Nascent Information Technology Employees Senate (NITES), which labelled the terminations as "illegal, unethical" and in violation of labor laws. Infosys claims that fewer than 350 employees resigned through "mutual separation" after failing internal assessments, while NITES alleges the number affected is closer to 700. The controversy escalated when Infosys reportedly asked trainees to resign within three hours, leaving many without accommodation. NITES has called for an immediate investigation and reinstatement of the terminated employees, warning that such actions "set a dangerous precedent for the IT industry."
Germany faces year of industrial disputes
Germany faces the prospect of industrial strife this year as employers cut jobs, shut factories and move staff abroad. Knut Giesler, deputy chairperson of Thyssenkrupp's steel unit and head of the IG Metall union in North Rhine-Westphalia, said: "We have to brace for a year of disputes," while Achim Dietrich, head of the works council at automotive supplier ZF Friedrichshafen, warned that: "Some [executives] believe it is necessary to cut off an arm in order to save the rest of the body." He believes the current situation is much worse than the 2008 financial crisis, and cites a reluctance to compromise on the part of company leaders.
Meta layoffs hit Singapore
Meta's recently announced layoffs have had an impact on the company's Singapore workforce, according to a leaked internal memo from Janelle Gale, the vice president of human resources. The layoffs, which began on February 10, have been described as "deeply emotional and challenging" by a Meta product manager in Singapore, who noted the heartbreak of seeing colleagues' deactivated profiles. Christopher Fong, co-founder of local career networking platform Key, organized a gathering to support those affected, observing: "People who have been through layoffs want to help and offer a sense of comfort."
OTHER
Betting boom leads to addiction surge
A new study published in JAMA Internal Medicine reveals a significant rise in gambling addiction help-seeking behavior since the 2018 U.S. Supreme Court decision allowing states to legalize sports betting. Senior author John Ayers from UC San Diego noted: “Sportsbooks have expanded from a single state to 38 states, with hundreds of billions of wagers.” The study found that online sports betting poses greater risks, with searches for gambling addiction help increasing by 61% after online sportsbooks launched in Pennsylvania. Researchers advocate for stronger regulations, including using sportsbook tax revenues to fund addiction services and stricter advertising rules. Dr. Kevin Yang emphasized the need for systematic surveillance, saying: “Without systematic surveillance, we are flying blind while millions bet on sports.”
 


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