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North American Edition
18th December 2024
 
THE HOT STORY
'Love Is Blind' cast are employees, labor board says
The National Labor Relations Board (NLRB) has found that the producers of the Netflix reality series Love Is Blind - which sees singles match up after days of dating while separated by a wall - had misclassified the contestants as "participants," and calls for them to be reclassified as employees and receive back pay for any lost wages while they were on the show. The NLRB's recognition comes after several former contestants described the poor treatment they faced while filming the show, including claims that their physical safety was at risk. NPR's Emma Bowman says it is the first major labor action filed on behalf of unscripted TV cast members, "and could lead to big changes to reality shows behind the scenes . . . and even what we see on our screens."
LEGAL
Starbucks Reserve in Washington state votes to unionize
Starbucks Workers United announced Tuesday that employees at the Sodo Reserve, a marketplace-style store showcasing Starbucks’ premium products, have voted 21-to-14 to join the union, making it the 33rd Starbucks outlet in Washington state to unionize. “Here at the Sodo Reserve, we know more than most just how vital we are to Starbucks’ operations,” said Alex Camarillo, a Seattle barista who has worked at the Reserve for nearly four years. "We see it every day as we serve our fellow partners who perform all sorts of roles here at headquarters. We’re part of the Starbucks culture and must be treated as true partners in the company’s turnaround.” After the strike authorization vote, Starbucks Workers United entered its final scheduled bargaining session of the year with the company. Neither side shared how the last session of the year went, meaning the crucial negotiations could be paused until next year.
Tesla slams German union over bid to oust works council head
Tesla has described as "desperate" an attempt by IG Metall, Germany's most powerful labor union, to oust the head of the works council at the EV maker's gigafactory near Berlin. The union said earlier it had filed a motion with a local court to remove the plant's works council head - who is not a member of the union - from the committee, citing violations to German labor law restricting its influence and preventing it from properly representing workers' interests.  IG Metall says conditions at the factory are sub-par: it the only car plant in Germany that is not governed by a collective wage agreement. Tesla denies that working conditions at the facility are below average, and maintains it offers equal or better terms than those negotiated by unions.
CULTURE
KPMG develops platform to reinforce corporate culture among employees
KPMG has developed a platform that aims to connect its 36,000 U.S. employees to company culture efforts. The Culture Champions Network (CCN) "brings together people that raise their hand . . . and [are] really committed to leading the way as it relates to culture, and being an ambassador, and a role model for culture," according to vice chair of talent and culture Sandy Torchia.  The CCN platform is gamified, so as employees participate in qualifying virtual and in-person events — such as business resource group events, mentoring sessions, volunteer work, nonprofit board service, and learning and development courses, Torchia said — they can earn titles ranging from “enthusiast” to “catalyst” and eventually “legend.” Torchia said: “We wanted to give people the path and recognize them for the things that they’re doing, and also it’s helpful sometimes to have a reminder of what else you might want to do to not only achieve status along the culture legends journey, but also just to make KPMG a great place to work."
ECONOMY
U.S. retail sales surge as economy thrives
U.S. retail sales rose by 0.7% in November, exceeding expectations and reflecting strong economic momentum, according to the Commerce Department's Census Bureau. The increase follows a revised 0.5% gain in October, with economists surveyed by Reuters predicting a 0.5% rise. The robust performance is attributed to a resilient labor market, characterized by low layoffs and strong wage growth, which supports consumer spending. Despite a late Thanksgiving holiday affecting shopping patterns, the solid sales figures indicate a strong start to the holiday shopping season. Core retail sales, excluding automobiles and other categories, increased by 0.4%. Consumer spending grew at a 3.5% annualized rate in the third quarter, contributing significantly to the economy's overall growth.
HEALTH & SAFETY
L.A. fined more than $560,000 for dog attack at animal shelter
The California Division of Occupational Safety and Health (Cal/OSHA) has fined the city of Los Angeles $563,250 due to significant safety and training failures at the San Pedro animal shelter. The fine follows an incident on May 31, when an employee's leg was "badly mauled, requiring hospitalization." Cal/OSHA's investigation revealed that the city failed to adequately train staff and manage overcrowding, which led to increased animal attacks. Leslie Corea, a kennel supervisor, suffered severe injuries during the attack, losing half her thigh. The report highlighted that "employees and their supervisors were not trained on effective animal handling and safety procedures." Cal/OSHA Chief Debra Lee emphasized the importance of workplace safety, saying: "Every employee deserves a workplace that prioritizes their health and safety."
CYBERSECURITY
FBI warns of impact of budget cuts on cybersecurity
Cynthia Kaiser of FBI Cyber has highlighted that budget cuts could severely hinder the agency's ability to combat Chinese cyberattacks. The FBI is currently addressing the Salt Typhoon infiltration, which has reportedly affected at least eight telecommunications companies. Senator Ben Ray Lujan has described this breach as “the largest telecommunications hack in our nation's history.” The FBI has also sanctioned the Chinese firm Sichuan Silence Information Technology for a cyberattack that endangered lives. Kaiser emphasized the need for improved security measures, urging: “What has happened should prompt us to be more secure, to defend better.”
WORKFORCE
Investors focus on human capital reporting
Global rulemakers last week highlighted that investors are increasingly concerned about human capital issues, particularly regarding working conditions and health and safety. The International Sustainability Standards Board (ISSB) revealed that there is substantial evidence linking human capital to firms' performance and share prices. The ISSB is currently researching human capital reporting, which involves how companies value and disclose their employees' experience and knowledge. This initiative is part of a broader effort; the ISSB's first two sets of rules on climate and general sustainability reporting take effect this year, with around 30 jurisdictions considering their implementation.
INTERNATIONAL
Congo files criminal complaints against Apple over conflict minerals
Congo has filed criminal complaints against Apple subsidiaries in France and Belgium, alleging the use of conflict minerals in the company's supply chain. The complaints, prepared by lawyers for Congo's justice minister, accuse Apple of covering up war crimes and laundering tainted minerals. "It is clear that the Apple group . . . knows very well that their minerals supply chain relies on systemic wrongdoing," the French complaint said. Congo's lawyers argue that Apple is complicit in crimes due to its reliance on minerals sourced from artisanal mines controlled by armed groups. The complaints highlight the historical context of Belgium's involvement in Congo's resource exploitation and call for judicial accountability. The U.S. State Department has also expressed concerns about the illicit trade in minerals from Congo financing conflict.
'Train-then-hire' is now Wipro's doctrine
Wipro, India's fourth-largest IT firm, is set to recruit between 7,000 and 7,500 employees by the end of December 2025 as part of its strategy to prepare for a market rebound. CEO Srinivas Pallia and Chief Human Resources Officer Saurabh Govil are implementing a "train-then-hire" model, collaborating with partners including Microsoft and Google to ensure candidates are ready for deployment. Govil explained: "Now we have changed it to train and then hire," underscoring the shift from the previous "hire and then train" approach. Wipro is also forming partnerships with institutions such as IIT-Delhi and IISc-Bangalore to align educational curricula with industry needs. Despite challenges like increased attrition and wage costs, Wipro aims to ensure adequate capacity to meet future demand as market conditions improve.
OTHER
CFPB cracks down on overdraft fees
The Consumer Financial Protection Bureau (CFPB) has finalized new regulations to restrict the fees banks can impose for overdrawing accounts. CFPB director Rohit Chopra described overdraft fees as a "legal loophole" that has cost Americans billions. He said: "The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they're charging on overdraft loans". The new rules offer banks options such as charging $5 or providing overdraft protection as a courtesy. The regulations apply to banks with assets exceeding $10bn. The rule will take effect October 1st 2025, although the rule's ultimate fate under the incoming Trump administration is uncertain. Additionally, the Consumer Bankers Association has filed a lawsuit against the CFPB, claiming that the agency has exceeded its authority while failing to consider how its actions would impact consumers. 
 


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