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North American Edition
18th August 2023
 
THE HOT STORY
Nearly half of Americans fear job automation
Close to half of Americans believe that automation could easily replace their jobs, according to a survey conducted by the American Staffing Association. Younger workers, Blacks, and Hispanics are more concerned about job automation compared to Baby Boomers and White Americans. The survey also found that one-third of Americans are already using AI at work. This is a significant change from a similar poll conducted in 2017, where close to three-quarters of employed Americans did not believe their jobs could be easily replaced by robots or AI. The survey also revealed that three-quarters of respondents expect increased use of automation and AI to lead to higher joblessness. Industrial workers are most likely to have their jobs replaced by automation, while health care employees feel the least exposed. Despite concerns, most Americans believe that increased use of technology will generally be beneficial for workers, although they are divided on whether it will help or hurt their careers. The online survey was conducted from June 20-22 and had a margin of error of 2.7%.
LEGAL
Washington Attorney General sues O'Reilly Auto Parts for discrimination against pregnant workers
Washington Attorney General Bob Ferguson is suing O'Reilly Auto Parts, alleging discrimination and retaliation against pregnant workers. At least 22 women were harmed as a result of the company's practices, according to Ferguson. The lawsuit aims to stop O'Reilly from engaging in unlawful conduct and seeks civil penalties and damages for the affected workers. O'Reilly has been unresponsive and uncooperative, according to the Attorney General's Office. The company claims its policies comply with Washington's laws protecting pregnant workers. The lawsuit also alleges violations of the state's consumer protection law. Pregnancy discrimination remains a widespread issue in corporate America, despite federal and state laws prohibiting it. President Joe Biden recently signed the Pregnant Workers Fairness Act into law, which requires employers to provide reasonable accommodations to pregnant workers. Ferguson's office previously investigated O'Reilly for failing to provide health care benefits to same-sex spouses. Pregnant workers who have experienced discrimination are encouraged to contact the Attorney General's civil rights division.
Hedge fund co-founder sued for contributing to ‘oppressive and misogynistic' culture
Karl Kroeker, co-founder of San Francisco-headquartered hedge fund Woodline Partners, is being sued by a former employee, Danielle di Bari, for allegedly creating a demeaning work culture and making sexually inappropriate comments. Di Bari alleges that she was fired after requesting to work remotely to accommodate her postpartum depression. The lawsuit claims that executive admins at Woodline were subjected to bawdy jokes, derogatory comments, and other inappropriate conduct, creating a hostile and misogynistic culture. Woodline has acknowledged the complaint and stated its commitment to providing a supportive workplace. Di Bari's law firm says it looks forward to vindicating her rights in court. The lawsuit seeks unspecified damages for discrimination, retaliation, and defamation. Woodline Partners, founded in 2019 by Kroeker and Michael Rockefeller, managed to attract $2bn in commitments and currently manages about $6bn. The lawsuit details several instances of inappropriate conduct, including suggestive hypothetical questions asked by Kroeker. Di Bari was fired after producing a doctor's note supporting a modified work schedule. The lawsuit alleges that Woodline's actions sent a hostile message to other female employees.
California judge rules against worker advocacy group in discrimination lawsuit
A California federal judge has ruled for a second time that worker advocacy group, One Fair Wage (OFW), lacks standing to pursue claims of discrimination against Darden Restaurants. The group alleges that Darden's policy of requiring servers to depend on tips discriminates against female and minority employees. However, U.S. District Judge Edward Chen stated that OFW had not shown any injury caused by the policy that would allow the lawsuit to proceed. OFW advocates for the elimination of the lower minimum wage for tipped workers and claims that minorities earn less from tips than their white counterparts. Chen has given OFW 30 days to file an amended complaint. The case is One Fair Wage v. Darden Restaurants Inc, U.S. District Court for the Northern District of California, No. 3:21-cv-02695.
Former employees sue Venture Global over blocked stock options
U.S. natural gas exporter Venture Global is facing lawsuits from former employees who claim the company has blocked them from exercising their stock options. The plaintiffs, including ex-advisers Lee Muller and John Ruggirello, former general counsel Paul Dillbeck, and Kathryn Lindquist, widow of former company director Terry Newendorp, have filed complaints in the U.S. District Court for the Eastern District of Virginia. They allege that Venture Global's compensation committee has refused to allow them to cash in their 10-year options before they expire next year, without providing a reason for the denials.
WORKFORCE
Ford prepares salaried workers for blue-collar jobs in case of UAW strike
Ford Motor is preparing white-collar workers to take on blue-collar jobs in case of a UAW strike. The company wants to protect the flow of parts to car dealers and plans to deploy salaried workers to 20 sites in 15 states with Ford parts depots. Salaried workers have been asked to rank their preferred sites. A Ford manager stated: "Our customers and dealers are counting on us to ship parts so we can keep Ford vehicles on the road." The automaker has also planned media training for salaried workers in case they come in contact with reporters during a strike. Ford, General Motors, and Stellantis are negotiating new contracts with a September 14 deadline. Ford's contingency plan has drawn concerns about safety and potential reputational risks.
De Beers assists employees in evacuating families amid wildfires
Anglo American unit De Beers Group is helping employees at its Gahcho Kué diamond mine in Canada's Northwest Territories evacuate their families due to wildfires. Canadian officials ordered the evacuation of Yellowknife and other communities as a massive wildfire threatened Hay River. De Beers is working with the mine's Yellowknife resident employees to support those who wish to travel to Yellowknife to assist their families in evacuating the city. The mine, however, continues to operate. Canada is currently experiencing its worst wildfire season, with over 1,000 active fires burning across the country, including 230 in the Northwest Territories.
Weekly jobless claims fall 11,000 to 239,000
The number of Americans filing new claims for unemployment benefits fell last week, pointing to continued tightness in the labor market even as job growth slows. Initial applications for state unemployment benefits dropped 11,000 to a seasonally-adjusted 239,000 in the seven days to August 12th, just short of the 240,000 expected by economists polled by Reuters. The four-week moving average of claims rose 2,750 to 234,250, while continuing claims, reported with a one-week lag, increased 32,000 to 1.716m. New jobless claims declined in 43 of the 53 states and territories that report these figures to the federal government. Nine others posted small upticks in new claims. Only Virginia had an increase of more than 1,000.
HIRING
Consulting firms delay start dates for college recruits
Consulting firms are delaying start dates for college recruits as business slows, leaving many recent graduates scrambling for part-time work and other ways to spend their time. Firms including Deloitte, KPMG, Boston Consulting Group, and McKinsey are pushing back start dates to 2024 and even paying new graduate hires stipends to compensate for the delay. Many graduates are trying to find productive ways to spend their time, while others are struggling to pay bills and find housing. Despite concerns about offers being rescinded, firms have stated their commitment to honoring offers. Graduates seeking interim work are advised not to disclose their short-term job search to prospective employers. Some graduates have found short-term jobs in other industries while waiting for their consulting roles to begin.
DIVERSITY, EQUITY & INCLUSION
Companies urged to stand their ground in supporting underrepresented staff
Companies that speak out in support of their underrepresented employees must stand their ground, according to a former Goldman Sachs managing director. Maeve DuVally, who worked in corporate communications at Goldman Sachs and is now a diversity and inclusion consultant, emphasizes the importance of not backtracking when speaking publicly. DuVally's comments come after Target and Anheuser-Busch faced backlash for their support of the LGBTQ community. DuVally, who recently published a memoir about coming out as transgender, highlighted the tension between companies' responsibility to underrepresented groups and the broader corporate environment. She observes that decisions on diversity, equity, and inclusion have become more complicated as support for environmental and social shareholder proposals has declined. A Bloomberg survey found that 59% of respondents believe using the 'ESG' label will alienate clients.
TECHNOLOGY
Businesses are concerned about public backlash over AI use
More and more companies are expressing concern about facing public criticism over their use of artificial intelligence (AI) amid growing fears about the technology's negative impacts, including job losses. The release of ChatGPT has shifted public opinion towards potential biases, discrimination, job displacement, and privacy concerns associated with AI. Businesses are now navigating how to use the technology without upsetting customers. Companies can mitigate the risk of backlash by encouraging collaboration between IT, enterprise risk management and communications within the organization, as well as getting the board involved in overseeing the risk management process, says Nir Kossovsky, CEO of Steel City Re, a reputation risk management and insurance company. Negative responses to decisions made by companies may be inevitable, but what is avoidable is a situation where the company looked like it was careless or didn't think through its actions, said Kossovsky. He added that companies can no longer assume AI is an inherent good.
Deepfake detection tools must use broad training datasets
Experts have warned that tools being developed to detect deepfakes must use training datasets that are inclusive of darker skin tones to avoid bias. Deepfake detectors often include the monitoring of blood flow and heart rate, but darker skin tones in a video stream are much harder to extract a heart rate out of. Mutale Nkonde, AI policy adviser and the CEO and founder of AI for the People, said: “If we’re going to have a technology that is maintaining the security of some people it really should maintain the security of all and, unfortunately, the technology isn’t quite there yet.”
INTERNATIONAL
Iran lawmakers push for stricter dress code
Iranian MPs are pushing for a new bill, known as the Hijab and Chastity Bill, which aims to intensify punishments for women violating Iran's enforced modesty laws. The bill proposes increased fines, jail time, and the use of artificial intelligence to identify violators. If approved, the bill would be implemented on a pilot basis for three to five years. The bill classifies improper hijab as its own crime, punishable by a prison sentence of five to 10 years and a larger fine. Experts argue that the bill is a form of "economic repression" that disproportionately affects those from lower socio-economic backgrounds. The bill is being passed under Article 85 of Iran's constitution, which allows parliament to pass laws without public debate. Critics argue that the government is using secrecy to avoid public backlash. The bill sends a message to dissidents that the regime will not back down and aims to maintain control. However, activists remain hopeful that the people of Iran will continue to resist the oppressive dress code laws.
Histadrut labor federation vows to prevent constitutional crisis
Histadrut Labor Federation chairman, Arnon Bar-David, has stated that the union will intervene to prevent a constitutional crisis in Israel if the government refuses to comply with a potential High Court of Justice decision to strike down legislation. Bar-David met with business leaders to discuss this possibility, as the High Court prepares to review petitions against recently passed laws involving amendments to Basic Laws. Prime Minister Benjamin Netanyahu has not confirmed whether his government would abide by such a ruling. Bar-David warned that ignoring the High Court's decision would lead to chaos. While he did not commit to calling a strike, talks between the business leaders and the labour union will continue. The possibility of a general strike has been raised if the government does not heed the High Court's decision. The judicial overhaul proposed by the government has faced widespread protests.
 


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