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14th March 2025
 
THE HOT STORY
Judge orders reinstatement of fired workers
The Trump administration has been ordered to reinstate thousands of probationary workers who were terminated in mass firings across various federal agencies. U.S. District Judge William Alsup in San Francisco said that the terminations were executed by a personnel office lacking the authority to do so. Alsup said: “It is sad, a sad day, when our government would fire some good employee and say it was based on performance when they know good and well that's a lie.” The ruling follows a lawsuit from a coalition of labor unions and organizations amid widespread concerns over the administration's approach to downsizing the federal workforce. The judge has mandated that the affected agencies report back within seven days with a list of the terminated employees and compliance details. Approximately 200,000 probationary workers are employed across federal agencies.
DIVERSITY, EQUITY & INCLUSION
Trump administration 'is defying court order over anti-DEI policy'
U.S. agencies are reportedly disregarding a court order that blocks President Donald Trump's ban on diversity, equity, and inclusion (DEI) programs for federal contractors. Groups suing over the ban, including the National Association of Diversity Officers in Higher Education and the city of Baltimore, informed U.S. District Judge Adam Abelson that contractors are being pressured to accept contracts with anti-DEI language. A report by Rolling Stone indicated that Trump administration officials are instructing staff that Abelson's order is "irrelevant" and to continue enforcing the policy. The lawsuit argues that the anti-DEI policy infringes on First Amendment rights. The Trump administration claims DEI initiatives are discriminatory and violate federal civil rights law.
WORKFORCE
Fewer Americans filed for jobless claims last week
The Labor Department reported Thursday that initial jobless claims fell by 2,000 to 220,000 in the seven days to March 8th. Economists polled by Reuters had forecast 225,000 claims for the latest week. The four-week average ticked up by 1,500 to 226,000, while the total number of Americans receiving unemployment benefits, reported with a one-week lag, fell 27,000 to 1.87m. “Initial jobless claims indicate that cost-cutting by the Department of Government Efficiency (DOGE) is having little impact on the national job market so far," commented economist Eliza Winger. "Planned mass layoffs will likely trigger a large increase in claims from federal workers, though the timing of any such layoffs is unclear.”
STRATEGY
Kroger announces further round of job cuts
Kroger has announced another round of layoffs, affecting an undisclosed number of positions at its consumer insights subsidiary, 84.51. Currently, Kroger employs 414,000 workers nationwide. The announcement follows previous job cuts to non-store workers last month. The company said that these layoffs are part of an "efficiency" drive to better serve customers, as it emphasized the need to "focus on the key priorities." The announcement comes amid significant changes at Kroger, including ongoing legal challenges from Albertsons, and the resignation of long-serving chief executive Rodney McMullen. Interim chief executive Ron Sargent has told Wall Street analysts that the company will consider both internal and outside candidates to replace Mr McMullen. For 2024, the company reported a profit of $2.7bn on revenues of $147.1bn.
USPS plans to cut 10,000 workers
Postmaster General Louis DeJoy has announced plans to reduce the U.S. Postal Service's workforce by 10,000 employees and cut billions from its budget. The initiative will be undertaken in concert with Elon Musk's Department of Government Efficiency. Critics, including Democratic U.S. Rep. Gerald Connolly, warn that the cuts could undermine the Postal Service, and particularly affect rural areas that depend on it for essential deliveries. The USPS, which currently employs about 640,000 workers, has previously announced plans to reduce operating costs by over $3.5bn annually.
Citigroup plans to slash IT contractors
Citigroup has plans to dramatically reduce its reliance on information technology contractors. Tim Ryan, the bank’s head of technology, told staff recently that the bank aims to cut back external contractors to 20% of those working in IT from the current 50%. Citi will put more IT staff on the payroll as the lender looks to improve controls following a series of compliance failures attributed to external contractors.
LEGAL
Duke defeats part of retaliation lawsuit
Duke University has achieved a partial victory in a lawsuit filed by Freddie Foust, a Black employee who alleged retaliation after reporting racially derogatory comments made by a supervisor. The U.S. District Court for the Middle District of North Carolina ruled that Foust had waited too long to present some of his claims to the Equal Employment Opportunity Commission, thus barring those allegations. However, the court found that his claims regarding Duke's failure to rehire him in retaliation for his internal complaints about racial bias were timely and could proceed.
Court battle looms for USADF
A small U.S. federal agency, the U.S. African Development Foundation (USADF), is set to appear in court to contest its operational control and existence. President Ward Brehm has filed a lawsuit against the Trump administration, claiming an attempted takeover is illegal and that neither President Donald Trump nor DOGE had the authority to shut down its operations or replace its board members and president. U.S. District Judge Richard J. Leon has temporarily blocked the administration from replacing USADF's leadership. The case raises questions about the legal authority of the Trump administration to remove independent board members, a power restricted by a nearly 90-year-old Supreme Court decision. The Trump administration argues that USADF's board has resisted compliance with presidential directives. Congress allocated $46m to USADF for economic development initiatives in Africa, and the agency employs around 50 people.
TECHNOLOGY
JPMorgan coding assistant boosts engineer efficiency
A coding assistant tool developed by JPMorgan Chase has enabled its software engineers to deliver products 10% to 20% faster, according to the firm's global chief information officer Lori Beer. Speaking ahead of internal JPMorgan conference DevUp in India, Beer remarked: "Success is if we continue to articulate that it's not just an incremental shift with AI, but we're transforming and creating value." She went on: "There's so much productivity and opportunity as we think about a world with AI. We've grown rapidly . . . You're going to see us continue to optimize the footprint we have."
INTERNATIONAL
Factories strike deal to end harassment
Workers at two Indonesian factories producing goods for Fanatics and Nike have secured a significant agreement aimed at combating sexual violence in the workplace. The Central Java Agreement for Gender Justice prohibits harassment and violence, with penalties for violations potentially including loss of business from major brands. Chris Fox, chief sustainability officer of Fanatics Commerce, said: “The comprehensive program created by this agreement is creating a safer and more secure workplace for all workers at these factories.” The deal, negotiated with the support of the Worker Rights Consortium and various labor organizations, is seen as setting a precedent for improving conditions in the garment industry globally.
Reykjavík's payroll blunder costs millions
At the end of last year, the City of Reykjavík corrected payments to employees amounting to 34m ISK ($252,000) due to a payroll system error affecting the December bonus. Eva Bergþóra Guðbergsdóttir, the City of Reykjavík's communications director, confirmed that approximately 4,900 employees were overpaid, with the highest individual adjustment being 11,900 ISK. The error impacted about 40% of the city's workforce, which comprises around 13,000 employees. The mistake was identified the day after the payment was processed, leading to the necessary corrections made on December 31st.
OTHER
Real estate agent's desk move 'counted as a demotion'
An employment tribunal judge in the U.K. has said that forcing senior employees to work at desks deemed inappropriate for their status could lead to perceptions of demotion. The case involved Nicholas Walker, a 53-year-old director at Robsons real estate agency, who resigned after being assigned to a "middle" desk instead of the "back" desk, which was traditionally reserved for managers. Walker argued that this arrangement undermined his status. The employment tribunal concluded that the desk issue was a valid reason for Walker's resignation, indicating that his boss's actions could "destroy or seriously damage" the trust in their relationship. Compensation for Walker will be determined later.
 


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