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North American Edition
4th September 2024
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THE HOT STORY
Molson Coors joins Lowe's, Ford in DEI retreat
Molson Coors is cutting back some of its corporate diversity efforts, joining a corporate retreat that includes Lowe's and Ford, and hastened by an anti-DEI social media campaign driven by conservative activist Robby Starbuck. The brewer said it would no longer participate in a scoring system by the Human Rights Campaign, an advocacy group that gives scores to companies based on LGBTQ+ inclusion in their workplaces.  In addition, Molson Coors said it would no longer have supplier-diversity goals, which typically aim to buy supplies from companies owned by minorities or women. Molson Coors’s human resources team has been working on changing its culture since March to evolve from “our work focused on DEI to a broader view in which all our employees know they are welcome,” the company said in an email to staff. It added: “The driving force behind this shift was the understanding that when all our people know they are welcome, they are more engaged, motivated and committed to our company’s collective success."
CULTURE
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WORKFORCE
Boeing’s factory floor workers feel 'overmanaged and undersupported'
A dozen current or former Boeing employees who spoke with The Seattle Times, as well as interviews with 13 front-line workers conducted during the National Transportation Safety Board’s investigation of the near-catastrophic incident in January when a panel blew off a 737 MAX plane mid-flight, have portrayed consistent problems on the factory floor. Boeing lost institutional knowledge during the pandemic and hasn’t yet caught up, they say. The company pushes workers to move quickly to get planes out of the factory, and sometimes ignores the correct sequence of work and neglects to document deviations. And upper management doesn’t want to hear their safety concerns. Boeing employees are “overmanaged and undersupported,” Patric Boone, a machinist who works in Boeing’s Everett delivery center on its KC-46 military tanker, says. “The house is on fire, and they’re concentrated on turning the lights off. They’re not seeing the problem.” Despite the challenges, some workers still believe in the safety of the planes they build, and emphasize the importance of how the company bounces back from its mistakes.
Baltimore Hilton hotel workers gear up for potential strike following expired contract
Unionized workers at the Hilton Baltimore Inner Harbor are preparing for a potential strike after their contract expired. With over 200 workers voting 97% in favor of allowing the contract to expire, the union is advocating for fair wages and job protections. Tracy Lingo, president of UNITE HERE Local 7, emphasized the need for “dignity and respect” for long-serving employees. Many workers reported financial struggles, with 97% of housekeepers facing difficulties in paying rent or mortgages. Lingo criticized the low wages, stating, “it’s just not acceptable for the wages to be so low that people are qualifying for food stamps.” Hilton has expressed commitment to negotiating a fair agreement, with the next bargaining session scheduled for September 5.
Fred Meyer workers end strike without new contract
Grocery workers at Portland-area Fred Meyer stores returned to work after a six-day strike without a new labor contract. Members of the United Food and Commercial Workers Local 555 walked out due to unresolved grievances and lack of bargaining data from Fred Meyer. Despite two days of negotiations during the strike, no agreement was reached. The strike involved 4,500 workers, including cashiers and stockers, but excluded some departments. The union plans to resume talks on September 11th-12th.
REGULATION
Rating agencies fined for recordkeeping failures
The U.S. Securities and Exchange Commission (SEC) has announced that six credit rating agencies, including Moody's Investors Service and S&P Global Ratings, will collectively pay over $49m in civil penalties for violating recordkeeping rules. The SEC highlighted that these firms failed to maintain electronic communications, particularly in relation to the use of messaging apps like WhatsApp. Moody's and S&P will each pay $20m, while Fitch Ratings will pay $8m. A.M. Best, HR Ratings de Mexico, and Demotech will pay smaller amounts.
REMUNERATION
Biden administration moves to end subminimum wages for disabled workers
Jackie Alemany, a congressional investigations reporter at The Washington Post, writes about an impending Biden administration move to end subminimum wages for disabled workers. For nearly 90 years, the Fair Labor Standards Act has allowed employers to pay disabled individuals less than the minimum wage, with some earning as little as 25 cents an hour. Activists argue that this law, known as Section 14(c), is outdated and devalues the work of disabled individuals. President Joe Biden's Labour Department is reportedly reviewing a new rule that could phase out this program, fulfilling his 2020 campaign promise. The proposed changes aim to enhance compliance and potentially eliminate the subminimum wage altogether. However, the rule must navigate a lengthy review process and face potential legal challenges.
WORKPLACE
Sears headquarters faces demolition
Workers have commenced the demolition of the vacant Sears world headquarters in Hoffman Estates, marking a significant transition of the 2.4m-square-foot site into a data center. Over the next two years, demolition crews will dismantle the buildings and an additional 1m sq ft of parking garage space. The site has been acquired by Compass Datacenters, signaling a new chapter for the iconic location.
ECONOMY
U.S. manufacturing gauges raise fears of economic contraction ahead
A key barometer of U.S. factories was negative for the fifth straight month in August, signaling the manufacturing side of the economy is still in a deep slump that might not end until after the presidential election. The Institute for Supply Management’s manufacturing index edged up to 47.2 from an eight-month low of 46.8. Numbers below 50 signal the manufacturing sector is shrinking. A separate gauge of U.S. manufacturing, the S&P Purchasing Managers’ Index, fell from 49.6 to 47.9 in August. “The manufacturing sector acting as an increased drag on the economy midway through the third quarter. Forward looking indicators suggest this drag could intensify in the coming months,” commented Chris Williamson, chief business economist at S&P Global Market Intelligence.
INTERNATIONAL
Korean banks' rigid organizational culture is blamed for repeated financial misconduct
Prosecutors have seized evidence from Woori Bank's headquarters in Seoul amid allegations of improper loans totalling 35bn won ($26m) linked to relatives of Son Tae-seung, the former chairman of Woori Financial Group. Korea's Financial Supervisory Service (FSS) says it is focusing on the need to improve the organizational culture within banks, after repeated financial crimes at various lenders, including embezzlement and breach of trust, were reported. An FSS official said:  “Discussions on developing organizational culture improvement measures are in the very early stages.” Despite existing internal control systems being comparable to those in advanced countries, the FSS is exploring international practices to enhance domestic banking culture. The urgency for change is underscored by the fact that 32 financial crimes were reported in the first half of this year, nearing last year's total of 36 incidents.
The rise of the corporate influencer
The rise of LinkedIn influencers is transforming corporate marketing strategies, as seen with Deloitte's appointment of Lara Sophie Bothur as the firm's first full-time corporate influencer for operations in Germany, Australia and Switzerland. Her posts on "tech for good" have garnered 400m impressions, significantly outperforming Deloitte's own posts. A study by Refine Labs revealed that personal LinkedIn profiles generate nearly three times the impressions and five times the engagement compared to corporate profiles. The trend is not limited to established firms. Start-ups like Waterboy and SET Active are also leveraging influencers to enhance brand visibility. Meagan Loyst, founder of Gen Z VCs, says companies will need to fight hard to retain influencers who can make a yearly corporate income in just a few partnerships on their own.
CBI staff must ask permission to drink at summer party
Staff attending the Confederation of British Industry’s summer party must ask permission to consume alcohol after a string of misconduct claims almost sunk the lobbying group last year. New rules state that staff-only events can only involve alcohol if food is served, but conditions are tighter for the upcoming London summer reception, which is outward-facing and expects to include over 100 leaders from U.K. business and politics.
OTHER
California schools to ban synthetic dyes
California has passed a groundbreaking bill, Assembly Bill 2316, which prohibits six synthetic food dyes linked to neurobehavioral issues in children from being served in public schools. Introduced by Assemblymember Jesse Gabriel and supported by Consumer Reports and the Environmental Working Group, the bill aims to protect students' health and learning capabilities. Gabriel stated: “California has a responsibility to protect our students from chemicals that harm children.” If signed by Governor Gavin Newsom, the law will take effect in December 2027, making California the first state to implement such a ban. The legislation follows a 2021 review by the California Environmental Protection Agency, which found that synthetic dyes can lead to adverse effects like hyperactivity in sensitive children. The bill encourages healthier food options in schools without banning specific foods, focusing instead on ingredient substitutions.
 


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