ReportWire

Tag: labor and employment

  • Canadian women’s national soccer team call off strike, captain says players are ‘being forced back to work’ | CNN

    Canadian women’s national soccer team call off strike, captain says players are ‘being forced back to work’ | CNN

    [ad_1]



    CNN
     — 

    The Canadian women’s national soccer team has called off its strike and resumed training after the sport’s governing body Canada Soccer threatened legal action, players said on February 11.

    A day earlier, captain Christine Sinclair told Canada’s The Sports Network (TSN) that the team was going on strike following cuts to its program and pay equity concerns.

    In a statement posted on Twitter, the Players’ Association said that Canada Soccer considered the strike “unlawful,” and that players “cannot afford the risks that personal action against us by Canada Soccer will create,” as they “have received no compensation yet for any of our work for Canada Soccer in 2022.”

    Canada Soccer said in its own statement that it “respects the players’ right to organize” but that players “were not and are not in a legal strike position under Ontario labor law.”

    It added that it was “not prepared to jeopardize” the upcoming SheBelieves Cup, the team’s preparations for the Women’s World Cup in five months and the experiences of “countless fans.”

    Canada, the reigning women’s soccer Olympic champion, is scheduled to face the United States Women’s National Team (USWNT) on February 16 in its first match of the SheBelieves Cup.

    “To be clear,” Sinclair tweeted. “We are being forced back to work for the short term. This is not over. We will continue to fight for everything we deserve and we will win. The She Believes is being played in protest.”

    Representatives from the Players’ Association met with Canada Soccer for a meeting on Saturday, both parties said.

    Canada Soccer added that it has committed to negotiating a comprehensive collective agreement with both the Women’s and Men’s National Teams which “will be an historic deal that will deliver real change and pay equity.”

    The players said in a February 10 statement that they had been negotiating with Canada Soccer for more than a year and are now “being told to prepare to perform at a world-class level without the same level of support that was received by the Men’s National Team in 2022.”

    Training camps have been cut for the women’s team, as well as the number of players and staff invited and the already limited youth program, the players’ statement said.

    “We expect and deserve nothing less than to be treated equally and fairly and to have our program – and our World Cup preparations – funded appropriately,” it added.

    CNN reached out to Canada Soccer and Sport Canada for comment on Saturday but had not received a response by the time of publication.

    [ad_2]

    Source link

  • ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN

    ‘A recipe for disaster.’ Deadly encounter in Memphis comes at a critical time in American policing | CNN

    [ad_1]



    CNN
     — 

    Since the night Tyre Nichols was kicked, pepper-sprayed, punched and struck with a baton by Memphis police officers, six cops have been fired and five of them charged with murder. Seven others face internal disciplinary charges.

    Nichols died three days after the January 7 traffic stop and subsequent fatal encounter captured on video and principally involving five officers with two to six years on the job.

    The death of the 29-year-old Black man comes at a critical juncture in American law enforcement, as departments across the country – including the Memphis PD – struggle to recruit qualified officers and fill shifts, lure candidates with signing bonuses worth thousands of dollars, and at times curtail standards and training in a desperate bid to strengthen patrols amid rising gun violence, according to law enforcement experts.

    “That is a recipe for disaster,” said Kenneth Corey, a retired NYPD chief who once ran the training division. “We’ve seen it happen before. You couldn’t fill seats. You lowered standards. And now you’ve got scandal and use of force. And when you look at the individuals involved you say, we never would have hired this guy once upon a time.”

    In the weeks since authorities released video of Nichols’ brutal beating, little information has come out about the recruitment and training of the five former officers facing murder charges – Tadarrius Bean, Demetrius Haley, Justin Smith, Emmitt Martin III and Desmond Mills Jr.

    The five men were part of a now disbanded specialized street crime unit formed just over a year ago as part of the city’s strategy to combat rising violence. The SCORPION unit focused on homicides, robberies, assaults and other felonies.

    Chuck Wexler, the executive director of the Police Executive Research Forum, said Nichols’ killing raises questions about “how those officers were trained and supervised and selected.”

    “Over time you always want to look at the backgrounds of those officers – that will be important. The hiring process – that will be important,” he said. “In this case we don’t know enough yet.”

    Bean, 24, was commissioned as an officer in January 2021, personnel records show. His attorney has not responded to CNN’s requests for comment.

    Haley, 30, was commissioned as an officer in January 2021, the records show. He is a former correctional officer. His attorney has not respond to requests for comment.

    Martin, 30, joined the department in 2018, according to the records. He will plead not guilty, according to his attorney, William Massey, who said: “No one out there that night intended for Tyre Nichols to die.”

    Mills, 32, a former jailer in Mississippi and Tennessee, joined the department as a recruit in March 2017, the records show. He, too, plans to plea not guilty, said Blake Ballin, his attorney, who described Mills as “devastated” and “remorseful.”

    Memphis Police Chief Cerelyn “CJ” Davis told CNN last month that Nichols’ death was indicative of “a gap somewhere” in the specialized street crime unit.

    “We train and we retrain these officers, just like specialized units around the country,” she said. “These officers working in specialized units, you always need to make sure that the supervision is there and present.”

    On January 28, one day after the release of the video, Memphis PD announced that it had permanently disbanded the unit.

    Davis said the department was unaware of any evidence the unit had previously engaged in misconduct but added that an investigation is ongoing.

    The five former Memphis officers charged in Nichols’ death also are accused of assaulting another young Black man just three days before the fatal police encounter, according to a federal lawsuit filed Tuesday.

    The suit accuses the city of failing to prevent or address an alleged pattern of policing abuses by the SCORPION unit, which it claims operated like a “gang of vigilantes” without adequate training or supervision. Police declined to comment on the lawsuit, citing ongoing litigation.

    The Shelby County District Attorney’s office in Memphis said it will review all cases involving the five officers charged with Nichols’ death.

    Davis, speaking at a Memphis city council meeting Tuesday, said training was not an issue with the unit. Instead, she said, “egos” and a “wolf pack mentality” contributed to the killing.

    “Culture is not something that changes overnight. You know, there is a saying in law enforcement that ‘culture eats policy for lunch.’ We don’t want to just have good policies because policies can be navigated around,” she said. “We want to ensure that we have the right people in place to ensure our culture is evolving.”

    Memphis Police Chief Cerelyn

    In this still from video released by the City of Memphis, officers from the Memphis Police Department beat Tyre Nichols on a street corner.

    These are the moments that led to Tyre Nichols’ death

    Nichols’ death comes as many police departments in the US have been reeling from an exodus of officers due to resignations and retirements and scrambling to attract new recruits. The staffing crisis has been exacerbated by high-profile cases such as the 2020 murder of George Floyd that have put policing under scrutiny and made it a frequent target of protests and moves to decrease funding.

    “The pandemic impacted recruiting and then George Floyd’s murder really was a moment in time that made prospective police applicants think twice – Is this a job for me?” Wexler said.

    “And now, unfortunately, with the Tyre Nichols killing you simply compounded what was already arguably a challenging environment to hire a police officer.”

    Wexler’s group, in a 2021 survey, found that retirements had risen 45% that year since 2019. Resignations had jumped 18% in that two-year period.

    The number of officers on the Memphis Police Department dropped by more than 22% since 2011 – from 2,449 in September 2011 to a low of 1,895 officers last December, according to the Memphis Data Hub website.

    The department was budgeted for 2,300 officers last year, CNN affiliate WMC reported. In 2015, nearly 200 Memphis police officers resigned over changes to pension and benefit plans, according to WMC.

    “It had gotten to the point that we were having sergeants as acting lieutenants,” said Alvin Davis, a former Memphis police lieutenant and recruiter who retired last year. “Hundreds of people did it over a period of time because we didn’t have enough supervisors. So many people were running out the door.”

    In this still from video released by the City of Memphis, officers stand around as Tyre Nichols leans up against a car after being detained and beaten on January 7.

    Like other departments around the country, the Memphis PD in 2021 began offering $15,000 signing bonuses and $10,000 in relocation assistance. Additionally, requirements on college credits, military experience and employment history have been loosened, WMC reported.

    “Departments around the country … are offering between $25,000 and $30,000 signing bonuses,” Wexler said. “You’ve got a national shortage of applicants which has forced police departments to do unprecedented things like offering signing bonuses and, in some cases, modifying the standards for hiring.”

    Greg Umbach, associate professor at John Jay College of Criminal Justice, said there is a direct correlation between higher standards for new recruits and lower incidents of bad behavior.

    “We know from decades of research that the number of cops meeting higher qualifications, most notably a college degree, matters far more than anything else, for the number of civilian complaints a department gets,” Umbach said.

    And if the pipeline of good officers is low, Umbach said, then so is the quality of supervision – a reality that has plagued the Memphis Police Department and other agencies nationwide.

    “Any police sergeant watching that video, their first thought is, ‘My God, where was the supervision and why did they think this was okay,’” Umbach said.

    The Memphis Police Department urges recruits to

    Davis, the former lieutenant and recruiter, asked a similar question about supervision.

    “If you pepper-spray someone or you tase someone, you’re supposed to call a supervisor,” said Davis, who spent 22 years on the job. “That’s just policy. Why they didn’t, I can’t say.”

    But, Davis said, the behavior of the former officers who beat Nichols did not entirely surprise him – given the curtailed training and standards, shortage of skilled supervisors and growing number of officers lured by monetary incentives and without the requisite experience being deployed on the city’s streets.

    “The standards kept dropping and dropping to bring people in,” said Davis, who was in charge of recruiting. “And then they start throwing money out to lure people in and this is what you got.”

    He added, “Just about everybody who came, the first thing they asked us was about was the money. How long did they have to stay on the job? Do I have to do a year? Two years? Nobody is trying to make a career out of it. It was the money.”

    The Memphis PD did not immediately respond to a request for comment on training, recruitment and staffing issues.

    “It’s not the job that it used to be, when you felt like you’re the ‘best in blue’ and you have your head up because you really feel like you accomplished something,” said Davis, referring to the Memphis Police Department’s longtime “Join the best in blue” recruitment campaign. “It’s not that kind of job anymore.”

    It’s too early to tell exactly what factors contributed to the behavior of the former officers who beat Nichols to death on January 7, law enforcement experts said.

    Wexler and others pointed to previous policing scandals that were preceded by periods of hiring under lax standards and curtailed training.

    In the late 1980s, nearly 10% of the officers in the Miami Police Department were suspended or fired after a corruption scandal involving rogue officers who became known as the “River Cops.” Nearly 20 former officers were convicted on various state and federal charges, including using their police powers as a racketeering enterprise to commit murder.

    Atlanta police officers keep an eye on marchers during a rally on January 28 protesting the fatal police assault of Tyre Nichols.

    In 1990, an investigation into the hiring and training of police officers in Washington, DC by the General Accounting Office found that a hiring rush during the previous decade – prompted by a wave of drug and gun violence – led to cutting corners on recruiting, background checks and training.

    Eight years later, another report by the GOA, the investigative arm of Congress, examined drug-related police corruption and said “rapid recruitment initiatives” coupled with loosening education requirements and inadequate training and supervision “might have permitted the hiring of recruits who might not otherwise have been hired.”

    “These are all lessons of history,” said Corey, the former NYPD chief. “You have to make the profession attractive to the type of people you want to recruit. It’s not that people have lost interest in policing. They just don’t see it as a viable occupation.”

    He added, “What we ask of our cops is that they think like lawyers, speak like psychologists, and perform like athletes but we pay them as common laborers. A starting officer in New York City makes $42,000 a year, which means about $20 dollars an hour. It also means that at McDonald’s they could be making $15 dollars an hour with none of the stress, trauma or risk.”

    [ad_2]

    Source link

  • Fact check: Breaking down Biden’s exchanges with Republican senators over Social Security and Medicare | CNN Politics

    Fact check: Breaking down Biden’s exchanges with Republican senators over Social Security and Medicare | CNN Politics

    [ad_1]


    Washington
    CNN
     — 

    President Joe Biden has gone on the attack over Social Security and Medicare.

    In speeches and tweets this week, Biden and his White House have singled out particular Republican senators – notably including Sen. Mike Lee of Utah, Sen. Rick Scott of Florida and Sen. Ron Johnson of Wisconsin – over proposals from those senators that could affect the retirement and health care programs.

    The Republican senators have responded forcefully, accusing Biden of deceiving the public about where they stand. Here is a fact-check of the exchanges.

    Biden and his White House targeted Lee on Wednesday over a video clip of Lee saying, “I’m here right now to tell you one thing that you probably have never heard from a politician. It will be my objective to phase out Social Security, to pull it up by the roots and get rid of it.” The clip has gone viral on Twitter this week; a second viral clip features Lee saying moments later, “Medicare and Medicaid are of the same sort and need to be pulled up.”

    The videos are authentic, though Biden didn’t tell his Wednesday speech audience in Wisconsin they are from more than 12 years ago – an event in 2010, when Lee was running for the Senate but before he was first elected. And as Lee noted in Wednesday tweets responding to Biden, Biden didn’t mention that Lee added at the same 2010 event that current Medicare beneficiaries should have their benefits “left untouched” and that “the next layer beneath them, those who will retire in the next few years, also probably have to be held harmless.”

    Still, while Biden could have included more context, he was accurate in saying Lee had called for Social Security to be phased out.

    And while Lee said in a tweeted statement on Wednesday that, during his 12 years as a senator, he has not called for “abolishing” Social Security, Medicare or Medicaid benefits, only for “solutions to improve those programs and move them toward solvency,” he has supported benefit cuts. For example, he has endorsed various proposals over the years to raise the Social Security retirement age.

    Since last year, Biden has criticized Scott over particular components of what Scott calls his “12 Point Plan to Rescue America.”

    In the State of the Union address on Tuesday and in speeches on Wednesday and Thursday, the president referred to a part of Scott’s plan that says, “All federal legislation sunsets in 5 years. If a law is worth keeping, Congress can pass it again.” Biden correctly asserted that “all federal legislation” would include Social Security and Medicare, which do not currently require congressional re-approval.

    Scott responded by accusing Biden of being dishonest and confused. Scott argued on Twitter on Wednesday that while his plan does say that “all” federal legislation should sunset in five years and become subject to a new vote by Congress, “This is clearly & obviously an idea aimed at dealing with ALL the crazy new laws our Congress has been passing of late.”

    But the plan itself doesn’t say that.

    The plan’s official text, which remains online on a dedicated website, says “all federal legislation,” period, should be sunset in five years – not all recent legislation, all crazy legislation or all legislation except for the laws that created Social Security and Medicare. When Senate Minority Leader Mitch McConnell rejected Scott’s plan last year, McConnell too said that the plan “sunsets Social Security and Medicare within five years.”

    Last year, Biden sometimes overstated the support for Scott’s sunset proposal among congressional Republicans, which appears very limited. Biden has been more precise in his speeches this week, attributing the proposal to Scott himself or accurately saying in the State of the Union that “some” Republicans – “I’m not saying it’s a majority” – support it.

    Biden may have created an inaccurate impression, however, by mentioning the sunset proposal during the section of the State of the Union in which he discussed the battle over the debt ceiling. There is no indication that House Republicans are pushing this proposal as part of the current debt ceiling negotiations with the Biden administration, and House Speaker Kevin McCarthy has, more generally, said cuts to Social Security and Medicare are “off the table” in these negotiations.

    Scott, in turn, has tossed a false claim into the debate with Biden this week by repeatedly accusing the president of having cut billions from Medicare in last year’s Inflation Reduction Act. The Inflation Reduction Act did not cut Medicare benefits; rather, it allowed the government and seniors to spend less money to buy prescription drugs – and, in fact, simultaneously made Medicare benefits more generous to seniors. The claim of a Medicare cut was repeatedly debunked last year, when Scott and a Republican campaign organization he chaired used it during the midterm elections.

    On Friday afternoon, the day after McConnell told a Kentucky radio station that Scott’s proposal will be a “challenge” for Scott’s own 2024 re-election campaign in a state with a large population of seniors, Scott announced he is introducing a new bill that would make it more difficult for Congress to make any cuts to Social Security and Medicare and that would send the Inflation Reduction Act’s $80 billion in Internal Revenue Service funding to Social Security and Medicare instead.

    This week and in numerous previous speeches, Biden has castigated Johnson for saying last year that Medicare and Social Security should be treated as discretionary spending, which Congress has to approve every year, rather than as permanent entitlements.

    Biden has accurately cited Johnson’s remarks this week. Here’s what Johnson told a Green Bay radio show in August: “We’ve got to turn everything into discretionary spending, so it’s all evaluated, so that we can fix problems or fix programs that are broken, that are going to be going bankrupt. Because, again, as long as things are on automatic pilot, we just continue to pile up debt.” When Johnson faced criticism for those remarks at the time, he stood by them and said that was his consistent longtime position.

    Johnson, however, claimed Wednesday that Biden was “lying” when the president discussed Johnson’s comments shortly after saying that some Republicans want to “cut” Social Security. Johnson has repeatedly said that his proposal to require annual approval for Social Security spending, and to “fix” and “save” Social Security in light of its poor fiscal shape at present, does not mean that he wants to put the programs on the “chopping block” or even to “cut” it.

    “The Democrats have been accusing me, since the first time I ran for office, of wanting to end Social Security, wanting to cut it, wanting to gut it, wanting to – I’ve never said that. I’ve always been consistent: I want to save it,” he said in a radio interview this week.

    It’s impossible to definitively fact-check this particular dispute without Johnson specifying how he wants to “fix” and “save” the program. His office did not respond to a CNN request for comment.

    White House deputy press secretary Andrew Bates noted in an email to reporters on Thursday that, though Johnson accused Biden this week of lying about his stance on Social Security, Johnson also said in interviews this week that Social Security is a “legal Ponzi scheme” and that “Social Security might be in a more stable position for younger workers” if the government had proceeded with Republican President George W. Bush’s controversial and eventually abandoned proposal in the mid-2000s to allow workers born after 1949 to divert a portion of their Social Security payroll taxes into private accounts in which they could buy into the stock market and make other investments.

    [ad_2]

    Source link

  • California state agencies investigating conditions at the two sites of the Half Moon Bay mass killing | CNN

    California state agencies investigating conditions at the two sites of the Half Moon Bay mass killing | CNN

    [ad_1]



    CNN
     — 

    Two California state agencies are investigating whether there were potential labor and workplace safety and health violations at the two Half Moon Bay, California, farms where seven people were fatally shot last month.

    The California Division of Occupational Safety and Health and the state’s Labor Commissioner’s Office “want to ensure that employees are being afforded all the protections of California labor laws,” a state official told CNN in an emailed statement.

    The statement did not offer further details about the probe, saying neither agency comments on ongoing investigations.

    The suspect worked on one of the mushroom farms where he is suspected of fatally shooting four of his coworkers. The site, owned by California Terra Garden, is a mushroom farm where the suspected gunman worked and lived on for at least seven years, according to officials and a spokesperson for that company. A California Terra Garden spokesperson has said there were several mobile homes and trailers for employees on the property.

    The suspect was also a former employee of another nearby farm where he’s accused of killing three former colleagues, San Mateo County Sheriff Christina Corpus previously said.

    In a news conference the day after the massacre, California Gov. Gavin Newsom highlighted the living conditions the farm workers faced.

    “Some of you should see where these folks are living, the conditions they’re in. Living in shipping containers,” the governor said. “Folks getting nine bucks an hour … no healthcare, no support, no services, but taking care of our health, providing a service to each and every one of us every single day.”

    And in a statement several days later, the governor’s office called the workers’ living conditions “deplorable.”

    “California is investigating the farms involved in the Half Moon Bay shooting to ensure workers are treated fairly and with the compassion they deserve,” according to a January 26 statement posted on Twitter by Daniel Villaseñor, the governor’s deputy press secretary.

    At the time, a California Terra Garden spokesperson responded to the accusations, saying the governor’s comments did not reflect the living conditions of farm workers.

    “The salary of all employees range from $16.50 to $24,” the spokesperson said, adding that workers receive “vacation days, company-sponsored health insurance, life/disability insurance, workman’s compensation insurance, and access to a 401(k) plan.” CNN has reached out to California Terra Garden for further details on how its employees are paid and for comment on the state agencies’ investigations.

    The spokesperson said last month that the eight families who lived on the property lived in “mobile homes and large recreational vehicles” equipped with kitchens, bathrooms, showers and “standard living amenities.”

    “No one lives in anything like shipping containers or tents as was erroneously reported. The families pay approximately $300 a month to rent these living spaces, well below market rate,” the company spokesperson said.

    [ad_2]

    Source link

  • Russia to cut oil output by 5% as sanctions bite | CNN Business

    Russia to cut oil output by 5% as sanctions bite | CNN Business

    [ad_1]


    London
    CNN
     — 

    Russia will cut crude oil production by half a million barrels per day starting in March, a little over two months after the world’s major economies imposed a price cap on the country’s seaborne exports.

    “We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”

    The cut is equivalent to about 5% of Russian oil output.

    Futures prices for Brent crude, the global benchmark, jumped 2.7% Friday to $86 a barrel as traders anticipated a tightening in global supply. US oil gained 1% to trade at $79 a barrel.

    In June last year, the European Union agreed to phase out all seaborne imports of Russian crude oil within the following six months as part of unprecedented Western sanctions aimed at reducing Moscow’s ability to fund its war in Ukraine.

    In a move aimed at further tightening the screws, G7 countries and the European Union agreed in December to cap the price at which Western brokers, insurers and shippers can trade Russia’s seaborne oil for markets elsewhere at $60 a barrel. Earlier this month, EU countries also banned imports of Russia’s diesel and refined oil imports.

    Novak warned that the crude oil price cap could lead to “a decrease in investment in the oil sector and, accordingly, an oil shortage.”

    Neil Crosby, a senior analyst at oil data firm OilX, told CNN that a 500,000 barrel-a-day cut is not the “worst-case scenario” and is still a smaller hit to Russian production than most analysts were expecting last year.

    “But it sets a precedent for further cuts ahead if necessary or desired by Russian authorities,” Crosby said, adding that Moscow could be anticipating difficulty in finding enough demand for its crude.

    Russian Urals crude traded at a discount to Brent crude of $28 a barrel on Friday. Over the past few months, India and China have snapped up cheap oil from Moscow, just as the EU — once Russia’s biggest customer for crude — has ended all imports.

    “Russia currently has a limited pool of buyers for its crudes and has likely found a ceiling to its export sales in the near term, primarily to China and India,” said Alan Gelder, vice president of refining, chemicals and oil markets at Wood Mackenzie.

    According to Reuters, Russia took the decision to reduce its output without consulting the OPEC+ group of producers, which includes Saudi Arabia. OPEC+ decided in October to cut output by 2 million barrels per day and has not adjusted that stance since.

    A potential drop in global oil supply could come at a tricky time. China’s swift reopening of its economy in December after almost three years of strict coronavirus restrictions has pushed up estimates for global oil demand.

    Last month, the International Energy Agency said it expected global demand to surge by 1.9 million barrels per day to reach an all-time high of 101.7 million barrels per day, with China accounting for nearly half of the increase.

    Western sanctions — added to the grinding cost of war — are weighing on Russia’s economy. The country’s budget deficit ballooned to $45 billion last year, or 2.3% of its gross domestic product.

    But Russia’s central bank held its main interest rate at 7.5% Friday, saying that economic activity was better than expected and that inflation was likely to come down this year.

    [ad_2]

    Source link

  • Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    [ad_1]

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Federal Reserve Chairman Jerome Powell threw markets into a tizzy on Tuesday as he spoke about the economy alongside his former boss, Carlyle Group co-founder David Rubenstein, at the Economic Club of Washington.

    Stocks struggled for direction as investors tried to get a read on Powell’s economic outlook, attitude towards inflation and on future interest rate hikes. Wall Street cheered as the Fed chair said the disinflationary process has begun, then soured when he said the road to reaching 2% inflation will be “bumpy” and “long” with more rate hikes ahead.

    Markets soared to new highs, before quickly falling to session lows and then recovering to close the day in the green.

    “Powell doesn’t want to play games with financial markets,” said EY Parthenon chief economist Gregory Daco after the conversation. But at the same time, he said Powell wanted to communicate that the Fed’s “base case was not for inflation to come down as quickly and painlessly as some market participants appear to expect.”

    Here’s why Powell thinks bringing down prices will be more difficult than investors anticipate.

    Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969.

    The current labor market imbalance is a reflection of the pandemic’s lasting effect on the US economy and on labor supply, said Powell on Tuesday in answer to a question about the report. “The labor market is extraordinarily strong,” he said. Demand exceeds supply by 5 million people, and the labor force participation rate has declined. “It feels almost more structural than cyclical.”

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. But prices remain stubborn for services. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said.

    “That sector is not showing any disinflation yet,” Powell said. “There has been an expectation that [higher prices] will go away quickly and painlessly and I don’t think that’s at all guaranteed.”

    Geopolitical uncertainties: Powell also cited concerns that the reopening of China’s economy after the sudden end of Covid-Zero restrictions, plus uncertainty about Russia’s war on Ukraine could also affect the inflation path in ways that remain unclear.

    The labor market is strong, but tech layoffs keep coming. There were around  50,000 tech jobs cut in January, and the trend has continued into February.

    Video conferencing service Zoom is one of the latest to announce layoffs. The company said Tuesday that it’s cutting 1,300 jobs or 15% of its workforce. 

    Zoom CEO Eric Yuan said in a blog post on Tuesday that Zoom ramped up employment  quickly due to increased demand during the pandemic. The company grew three times in size within 24 months, he said and now it must  adapt to changing demand for its services.

    “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.

    Yuan added that he plans to lower his own salary by 98% and forgo his 2023 bonus. Shares of Zoom closed nearly 10% higher on Tuesday. 

    The announcement comes just one day after Dell said it would lay off more than 6,500 employees.

    Amazon

    (AMZN)
    , Microsoft

    (MSFT)
    , Google and other tech giants have also recently announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    Neel Kashkari, president of the Federal Reserve Bank of Minneapolis told CNN that he is starting to think that the US economy could avoid a recession and achieve a so-called soft landing.

    It’s hard to have a recession when the job market is still so robust, he told CNN’s Poppy Harlow on Tuesday on CNN This Morning.

    Still, “we have more work to do,” Kashkari told Harlow, adding that the labor market is “too hot” and that is a key reason why it is “harder to bring inflation back down.”

    Although many investors are starting to think the Fed may pause after just two more similarly small hikes, to a level of around 5%, Kashkari said he believes the Fed may have to raise rates further. Kashkari has a vote this year on the Federal Open Market Committee, the Fed’s interest-rate setting group.

    It’s a good time to be in the oil business. BP’s annual profit more than doubled last year to an all-time high of nearly $28 billion.

    The British energy company said in a statement that underlying replacement cost profit rose to $27.7 billion in 2022 from $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also unveiled a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    BP’s shares rose 6% in Tuesday trading following the news. Over the past 12 months, its shares have soared 24%.

    The earnings are the latest in a string of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of skyrocketing oil and gas prices.

    Last week, another energy major Shell reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices jumped following Russia’s invasion of Ukraine.

    On Wednesday it was TotalEnergie

    (TTFNF)
    s turn. The French company posted annual profit of $36.2 billion for 2022, double the previous year’s earnings.

    Disney has found itself in the middle of a culture war battle that could end up transferring Disney World’s governance to a board appointed by Florida Gov. Ron DeSantis. And that may be the least of Disney’s problems, writes my colleague Chris Isidore.

    The company faces a media industry in turmoil, plunging cable subscriptions, a still-recovering box office, massive streaming losses, activist shareholders, possible reorganization and layoffs and growing labor disputes with employees. That’s a lot for CEO Bob Iger to handle.

    Iger, who retired as CEO in 2020 only to be brought back in November, has been mostly quiet about his plans for the company since his return. That ends at 4:30 p.m. ET Wednesday when he is set to begin an earnings call with Wall Street investors.

    Click here to read more about what to look for on what is certain to be a closely-followed call.

    [ad_2]

    Source link

  • Fed Chair Powell: Inflation fight will take ‘a significant period of time’ | CNN Business

    Fed Chair Powell: Inflation fight will take ‘a significant period of time’ | CNN Business

    [ad_1]


    Minneapolis
    CNN
     — 

    The US labor market remains “extraordinarily strong” and Friday’s monster jobs report underscored that the central bank has more work to do to bring down inflation, Federal Reserve Chairman Jerome Powell said Tuesday.

    “We didn’t expect it to be this strong,” Powell said of the January jobs report, which showed the US economy added 517,000 jobs. “It kind of shows you why we think that this will be a process that takes a significant period of time.”

    Powell was speaking during a question-and-answer session with David Rubenstein of the Economic Club of Washington.

    “The disinflationary process has begun,” Powell said, noting progress especially in goods prices. However, price gains within the services sector remain high, he added.

    The Fed expects “significant” declines in inflation to occur this year. It will take “not just this year but next year to get down to 2%,” the central bank’s inflation target, Powell said. And rates will have to remain at a restrictive level “for a period of time” before that happens, he noted.

    Powell expects housing inflation to come down by the middle of this year but is keeping the closest watch on a metric within the Personal Consumption Expenditures report: Core services excluding housing.

    “There has been an expectation that [inflation] will go away quickly and painlessly; I don’t think it’s guaranteed that’s the base case,” Powell said. “It will take some time.”

    The major US stock indexes rallied during Powell’s discussion but then fell in early afternoon trading, with the Dow down by around 200 points or 0.6%, the S&P lower by 0.3% and the tech-heavy Nasdaq down by 0.2%.

    While economists said the January job total was heavily influenced by seasonal factors and will probably be adjusted downward, it was probably too hot for the Fed’s liking. The robustness of the labor market has stood somewhat at odds with the Fed’s efforts to lower inflation.

    “The labor market is strong because the economy is strong,” Powell said.

    The current labor market is also a reflection of the pandemic’s lasting effect on the US economy and labor supply, he noted. The demand exceeds the supply by 5 million people, and the labor force participation rate has declined, he said.

    “It feels almost more structural than cyclical,” he said.

    A key reason Chair Powell wants more slack in the labor market is out of concern that a tight employment situation will continue to push up wages, which could then keep inflation elevated. As the unemployment rate rises, workers lose bargaining power for higher wages and households pull back on spending.

    Fed officials also want to keep inflation expectations anchored.

    “We had a labor market with 3.5% unemployment in 2018 and ’19, and we had inflation just barely getting to 2%, and wages moving up for most of the people at the lower end of the spectrum,” he said. “We all want to get back to that place.”

    And the Fed will react accordingly with the data to ensure it does, he said.

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    [ad_2]

    Source link

  • 4 people hospitalized after battery fire in United plane cabin | CNN

    4 people hospitalized after battery fire in United plane cabin | CNN

    [ad_1]



    CNN
     — 

    A fire from the battery of an electrical device aboard a United Airlines flight forced a Newark-bound plane to return to San Diego on Tuesday and sent four people to the hospital, officials say.

    The flight crew aboard United Flight 2664 prevented the fire from spreading further, and the plane returned to the airport, according to a tweet from the San Diego Fire Department.

    Emergency personnel responded and are currently treating passengers, said San Diego International Airport (SAN) spokesperson Sabrina LoPiccolo in a phone interview with CNN.

    FlightAware data shows that the aircraft, a Boeing 737 MAX 8, took off from the airport at 7:07 a.m. Pacific Time and landed back in San Diego at 7:51 a.m.

    Fire crews evaluated all passengers and crew, and four people were taken to the hospital. Two others declined further treatment, according to another tweet from the San Diego Fire Department.

    FAA spokesperson Ian Gregor told CNN the fire was from a laptop battery. “The FAA will investigate,” Gregor said.

    Flight attendants who are credited with containing the fire are among those taken to the hospital, according to the airline.

    “Our crew acted quickly to contain the device and medical personnel met the aircraft upon arrival at the gate,” said United Airlines spokesperson Charles Hobart in a statement to CNN. “Several flight attendants were taken to the hospital as a precaution, and two customers were evaluated onsite.”

    “We thank our crew for their quick actions in prioritizing the safety of everyone on board the aircraft and we are making arrangements to get our customers to their destinations,” Hobart added.

    [ad_2]

    Source link

  • Memphis City Council takes up reform proposals at first hearing since release of Tyre Nichols video | CNN

    Memphis City Council takes up reform proposals at first hearing since release of Tyre Nichols video | CNN

    [ad_1]



    CNN
     — 

    The Memphis City Council began to discuss nearly a dozen public safety proposals and reforms and grilled the city’s police chief and fire chief on Tuesday morning at the council’s first public hearing since the release of disturbing video showing the police beating of Tyre Nichols.

    “The month of January has deeply affected all of us and continues to do so, serving as a clarion call for action,” councilwoman Rhonda Logan said. “Today our focus will be on peeling back the layers of public safety in our city and collaborating on legislation that moves us forward in an impactful and intelligent way.”

    The council’s Public Safety and Homeland Security Committee was set to take up 11 proposals in all, including an ordinance to establish a procedure for an independent review of police training; an ordinance to clarify “appropriate” ways of conducting traffic stops; an ordinance to require police only to make traffic stops with marked cars; and a presentation on a civilian law enforcement review board, according to an online agenda.

    Memphis Police Chief Cerelyn “CJ”Davis and Fire Chief Gina Sweat spoke at the hearing and presented their plans for changing their departments going forward. The officials also answered questions from council members frustrated with the responses.

    The hearing comes about a month after Nichols, a 29-year-old Black man, was beaten by Memphis police officers with the specialized SCORPION unit following a traffic stop not far from his family’s home. He was taken to the hospital afterward and died three days later.

    The city released body-camera and surveillance footage in late January that showed officers repeatedly punching, kicking and using a baton on Nichols while his hands were restrained. They then left him without medical care for more than 20 minutes, the video shows.

    The video contradicted what officers said happened in the initial police report, which had indicated Nichols “started to fight” with officers and at one point grabbed one of their guns.

    His death has renewed calls for police reform and reignited a national conversation on justice in policing.

    Five officers involved in the beating, all of whom are Black, were fired and were indicted on charges of second-degree murder. In addition, a sixth officer was fired, and a seventh was put on leave. Further, the Fire Department fired two EMTs and a lieutenant for failing to render emergency care.

    The specialized SCORPION unit also was disbanded, less than two years after it was put into place.

    Sweat, the fire chief, told the council that training issues and the failure of EMTs to take personal accountability on a call were to blame for her department’s handling of Nichols.

    The dispatch call involving Nichols came in as a report of pepper spray, Sweat said. She described that as a “fairly routine call” – there have been over 140 pepper spray calls in the last six months – and the EMTs and lieutenant on scene treated it as such.

    “They did not have the video to watch to know what happened before they got there, so they were reacting to what they saw and what they were told at the scene,” Sweat said. “Obviously, they did not perform at the level that we expect or that the citizens of Memphis deserve.”

    According to Sweat, she saw the video of Nichols’ beating when it was released to the public, but an EMS chief had reviewed it days prior. Before the video was released on Friday, managers had already scheduled an administrative hearing with the employees involved for Monday, said the chief.

    “They did not perform within the guidelines and the policies that are already set. And that’s why they’re no longer with us,” the fire chief said.

    Councilman Frank Colvett Jr. said the Fire Department’s timeline of when it saw the video was an issue.

    “As the director of fire, there is a problem. I think it’s very clear to you now that solutions are required. And I understand procedures were not followed, and I understand we are looking at it. But it’s got to be more than that. OK, director, it’s got to be this is what we see and this is how we’ll fix it,” Colvett said.

    Prior to his death, Nichols had worked with his stepfather at FedEx for about nine months, his family said. He was fond of Starbucks, skateboarding in Shelby Farms Park and photographing sunsets, and he had his mother’s name tattooed on his arm, the family said. He also had the digestive issue known as Crohn’s disease and so was a slim 140 to 150 pounds, despite his 6’ 3” height, his mother said.

    Nichols’ mother and stepfather, RowVaughn and Rodney Wells, are among the first lady’s guests at President Joe Biden’s State of the Union speech on Tuesday night.

    Biden hosted members of the Congressional Black Caucus at the White House last week to discuss police reform, which has stalled in Congress multiple times and faces an uncertain path forward.

    [ad_2]

    Source link

  • House Oversight chairman and former Twitter employees strike deal on subpoenas in exchange for testimony | CNN Politics

    House Oversight chairman and former Twitter employees strike deal on subpoenas in exchange for testimony | CNN Politics

    [ad_1]



    CNN
     — 

    House Oversight Committee Chairman James Comer has subpoenaed three former Twitter employees who will testify before the panel in relation to their investigation into Twitter’s decision to temporarily suppress a New York Post story regarding Hunter Biden’s laptop, three sources familiar with the documents tell CNN.

    Twitter’s former Chief Legal Officer Vijaya Gadde, former Deputy General Counsel James Baker and former Head of Trust and Safety Yoel Roth requested they be subpoenaed in order to compel their testimony, the sources told CNN, given the legal complications of publicly sharing privileged information from Twitter before the committee.

    The hearing comes after Twitter’s CEO, Elon Musk, released some internal communications from Twitter staff about the decision to censor the New York Post story in the closing weeks of the 2020 presidential election campaign season.

    Comer, who met privately with Musk last month when the billionaire visited the Capitol, told CNN last week that the hearing may “incorporate some private conversations with some high-level people at Twitter” who support the belief that the US government may have played a role in the suppression of the New York Post story.

    When asked specifically if Musk has conveyed this sentiment to him, the Kentucky Republican told CNN: “I cannot answer that but that may come out in the hearing.”

    Comer’s belief that the government may have been involved in the suppression of the story is rooted in the so-called “Twitter files” that Musk made publicly available. Comer added his panel so far has only had access to the files that have been released publicly.

    “Americans deserve answers about this attack on the First Amendment and why Big Tech and the Swamp colluded to censor this information about the Biden family selling access for profit. Accountability is coming,” Comer said in a statement regarding the hearing.

    CNN has previously reported that allegations the FBI told Twitter to suppress the story are unsupported, and a half a dozen tech executives and senior staff, along with multiple federal officials familiar with the matter, all denied any such directive was given in interviews with CNN.

    Republicans on the panel are especially eager to grill Baker, who previously served as general counsel at the FBI during the investigation into whether former President Donald Trump had colluded with Russia. Baker joined Twitter just five months before the 2020 election.

    Gadde, Baker and Roth did not respond to CNN’s requests for comment.

    This story has been updated with additional developments.

    [ad_2]

    Source link

  • Dell to lay off more than 6,500 employees | CNN Business

    Dell to lay off more than 6,500 employees | CNN Business

    [ad_1]



    CNN
     — 

    Dell plans to lay off roughly 5% of its workforce, the company said in a regulatory filing Monday, in the latest example of tech companies cutting costs in an uncertain economic climate.

    Dell has about 133,000 employees, the company told CNN. At that level, the 5% cut would represent more than 6,500 employees.

    The computing giant cited the “challenging global economic environment” for the cuts. In a letter to employees, Jeff Clarke, Dell’s vice chairman, said steps the company has already taken — such as restrictions on employee travel and a pause on external hiring — are insufficient.

    “What we know is market conditions continue to erode with an uncertain future,” Clarke told employees. “The steps we’ve taken to stay ahead of downturn impacts – which enabled several strong quarters in a row – are no longer enough. We now have to make additional decisions to prepare for the road ahead.”

    The move comes as layoffs continue to spread throughout the tech industry. Amazon, Microsoft, Google and others have each announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    Dell has also been grappling with reduced demand for personal computers.

    Consulting firm Gartner said last month that worldwide PC shipments fell more than 28% in the fourth quarter of 2022 compared to the same period the prior year. This marked the largest quarterly shipment decline since Gartner began tracking the PC market in the mid-90s.

    Dell, in particular, saw a 37% decline in PC vendor unit shipments during the final three months of 2022 compared to the year prior, according to Gartner.

    [ad_2]

    Source link

  • Gold giant Newmont’s $16.9 billion bid for Australia’s Newcrest clouded by deal doubts | CNN Business

    Gold giant Newmont’s $16.9 billion bid for Australia’s Newcrest clouded by deal doubts | CNN Business

    [ad_1]


    Melbourne
    Reuters
     — 

    Top gold producer Newmont

    (NEM)
    Corp said it had made a $16.9 billion offer for Australian peer Newcrest

    (NCMGF)
    Mining to build a global gold behemoth, although investors and analysts said it undervalued the target amid a leadership change.

    Newcrest is seeking a new boss, with previous chief executive Sandeep Biswas having stepped down in December, while global interest rates are expected to peak this year and turn down, polishing the outlook for gold prices.

    The Australian gold miner said that it was considering the all-share proposal in a filing that was a response to media speculation over the weekend. The initial feedback from shareholders is that they want a higher price, according to a person familiar with Newcrest’s deliberations.

    “A good litmus test for a reasonably-priced deal is one where both seller and buyer feel somewhat aggrieved by selling out too low or by paying too much,” said Simon Mawhinney, chief investment officer at Allan Gray, Newcrest’s largest shareholder with a 7.36% stake. “It’s not clear to me that this kind of symmetry exists with these deal terms.”

    Newcrest shares surged as much as 14.4% to A$25.60 ($17.77), the highest since May 2022, but remained below the implied current offer price of $27.16, suggesting investors were not convinced the deal would pan out. Shares closed 9.3% higher at A$24.53.

    Newmont, which is already the world’s biggest gold producer by market capitalization and by ounces produced, said the combination represented “a powerful value proposition.”

    Newcrest’s operations include its top class Cadia asset in Australia, an expanding footprint in North America and Papua New Guinea, and growth potential in copper, highly prized as key to the energy transition. BHP

    (BBL)
    Group offered $6.4 billion for Australian copper miner Oz

    (OZMLF)
    Minerals Minerals in December.

    The Newmont proposal is via an agreed scheme of arrangement that would need to be recommended by the Newcrest board and subject to due diligence, various regulatory approvals and a shareholder vote that could stretch out for months.

    The indicative offer implies a 21% premium to Newcrest’s last closing value of A$22.45, materially below the traditional 30% takeover premium, noted analyst Jon Mills of Morningstar, which values Newcrest at about A$31 per share.

    Newcrest shareholders would receive 0.380 Newmont shares for every Newcrest share, giving them a 30% stake in the enlarged miner. It is a 4.7% improvement from a previous 0.363 per share offer that Newcrest already rejected for not providing enough value to shareholders, Newcrest disclosed on Monday.

    If investors don’t back the deal, the board will be under pressure to improve Newcrest’s value, perhaps by breaking out assets like Havieron and Telfer in Australia, or Lihir in Papua New Guinea, said Barrenjoey analyst Dan Morgan.

    Newcrest has been expected to announce a new chief executive this year after Biswas announced his retirement after eight years.

    Sherry Duhe, formerly chief financial officer, who joined Newcrest in February last year, is interim chief executive while a global internal and external search for a replacement is underway.

    Newcrest has been viewed as a target in recent years given its middling performance, but only a handful of buyers are big enough to take it out, said an investment banker who was not authorized to speak publicly about the matter.

    The all-share nature of the offer meant the timing is more likely to be linked to Newcrest’s leadership vulnerability than a big call on the gold price, but it probably also reflects a constructive view on the precious metal, the banker added.

    Risks are growing for gold to break higher, Morgan Stanley in a note on Jan. 16, noting that its macroeconomists were now forecasting lower rates and a weaker U.S. dollar, in tailwinds for the metal.

    Morgan Stanley is looking towards a bull case of spot gold reaching $2,160 in the fourth quarter, up from $1,866 an ounce.

    [ad_2]

    Source link

  • EV maker Rivian to cut 6% of jobs amid price war | CNN Business

    EV maker Rivian to cut 6% of jobs amid price war | CNN Business

    [ad_1]



    Reuters
     — 

    Rivian Automotive is laying off 6% of its workforce in an effort to cut costs as the EV maker, already grappling with falling cash reserves and a weak economy, braces for an industry-wide price war.

    The company is focusing resources on ramping up vehicle production and reaching profitability, Chief Executive R.J. Scaringe said in an email to employees on Wednesday announcing the job cuts. Reuters obtained a copy of the email.

    Layoffs at Rivian come amid falling EV prices kicked off by cuts made recently by Elon Musk-led Tesla

    (TSLA)
    and Ford Motor Co.

    The price cuts by Tesla and Ford are expected to hurt EV upstarts such as Rivian, Lucid Group and British startup Arrival, which Monday said it would lay off half its staff.

    Despite a blockbuster initial public offering in November 2021, Rivian’s shares have fallen nearly 90% from their peak that month to Tuesday’s close. Rivian’s stock was trading down 4% on Nasdaq on Wednesday, paring some losses after news of the job cuts.

    “We must focus our resources on ramp and our path to profitability,” Scaringe said in the email, in which he apologized to employees for the necessity of the cuts.

    A Rivian spokesman confirmed the email was sent, but declined further comment.

    “They’re bleeding cash and would like to grow at a much faster rate, but they continue to struggle with their EV production ramp and have been unable to meaningfully drive down unit costs,” CFRA Research analyst Garrett Nelson said. “We think that is what’s behind this decision.”

    Rivian is focusing on ramping up production of its R1 trucks and EDV delivery vans for top shareholder Amazon.com and launching its R2 platform, he said. “The changes we are announcing today reflect this focused roadmap.”

    Irvine, California-based Rivian, which has about 14,000 employees, will let go of about 840 staff in a move that will not affect manufacturing operations at its plant in Normal, Illinois.

    Rivian, which has been losing money on every vehicle it builds, narrowly missed its full-year production target of 25,000 vehicles last year as it dealt with supply-chain disruptions caused by the COVID-19 pandemic. It had previously halved that target.

    To further conserve its cash, Rivian late last year shelved plans to build delivery vans in Europe with Mercedes. Rivian had earlier pushed back by a year to 2026 the planned launch of a smaller R2 vehicle family at the $5 billion plant it is building in Georgia.

    Last July, Rivian, which is scheduled to report fourth-quarter results on Feb. 28, laid off staff and suspended some programs as part of a broader restructuring.

    The company has a market valuation of $17.8 billion. Its cash and cash equivalents stood at $13.27 billion as of Sept. 30, 2022, down from over $18 billion a year earlier.

    [ad_2]

    Source link

  • New York City directive to potentially involuntarily commit someone suffering a mental health crisis can proceed, court rules | CNN

    New York City directive to potentially involuntarily commit someone suffering a mental health crisis can proceed, court rules | CNN

    [ad_1]



    CNN
     — 

    A New York City directive allowing first responders to enforce a state law that allows them to potentially involuntarily commit people experiencing a mental health crisis can proceed after facing legal challenges by mental health advocates, a judge has ruled.

    The ruling, issued Monday by U.S. District Judge Paul Crotty in the Southern District of New York, denied a motion brought by individuals and mental health organizations in December. The legal challenge asked a judge to issue a temporary restraining order and preliminary injunction against the city’s implementation of the policy.

    The motion was filed on December 8 as part of an existing lawsuit that alleges New York City has consistently failed to provide safe and appropriate care to New Yorkers experiencing mental health crises. The plaintiffs argued the city’s plan is unconstitutional and violates an individual’s “freedom to live without unlawful seizures and excessive force by law enforcement.”

    New York City Mayor Eric Adams first announced the directive in November as part of an attempt to address concerns about homelessness and crime.

    Adams said it was a myth that first responders can only involuntarily commit those who displayed an “overt act” showing they may be suicidal, violent or a danger to others, CNN previously reported. Instead, he said the law allowed first responders to involuntarily commit those who cannot meet their own “basic human needs” – a lower bar.

    Nicholas Paolucci, the director of public affairs at the New York City Law Department, said in a statement to CNN that the defendants are “pleased the court agreed plaintiffs have no legal standing to halt the Mayor’s sound and compassionate plan.”

    As part of the city’s plan, New York Police Department officers and first responders will get additional training to help them make such evaluations and a team of mental health technicians will be available, either via a hotline or video chat, to help them determine whether a person needs to be taken to a hospital for further evaluation, CNN previously reported.

    The city also plans to develop specialized intervention teams to work side by side with NYPD officers.

    Adams said first responders weren’t consistently enforcing the law because they were unsure of its scope, reserving it only for cases that appeared the most serious.

    New York state enacted a law in 2021 to allow first responders to involuntarily commit a person with mental illness who needs immediate care. The directive led to a mixed response from officials, who acknowledged the challenges of properly and humanely treating mentally ill people.

    “This is a longstanding and very complex issue,” NYPD Commissioner Keechant Sewell said in a statement. “We will continue to work closely with our many partners to ensure that everyone has access to the services they require. This deserves the full support and attention of our collective efforts.”

    Mental health advocates argued in their legal challenge that the city’s policy will authorize officers with “little to no expertise in dealing with individuals with mental disabilities…to determine whether an individual should be forcefully – often violently – detained against their will.”

    “If the Involuntary Removal Policy is permitted to continue to be implemented, Plaintiffs and countless other New Yorkers will suffer irreparable harm, including a substantially increased likelihood that they will be subjected to unlawful detention and involuntary hospitalization just for exhibiting behavior perceived by a police officer to be unusual – whether the individual has a mental disability or not,” the advocates’ December motion stated.

    [ad_2]

    Source link

  • Why did we get a monster jobs report if the economy is slowing? | CNN Business

    Why did we get a monster jobs report if the economy is slowing? | CNN Business

    [ad_1]


    Minneapolis
    CNN
     — 

    The economy wasn’t supposed to add half a million jobs in January.

    In fact, a consensus poll of 81 economists expected job gains to land at around 185,000, according to Refinitiv. After 11 months of aggressive rate hikes from the Federal Reserve, the experts were naturally expecting the economy’s job gains to slow as higher borrowing costs percolated through the economy, slowing investment and growth and pushing companies to pull back on spending and hiring.

    And yet, even though it seemed impossible, the labor market is somehow getting tighter, said Rucha Vankudre, senior economist at business analytics firm Lightcast.

    “I think pretty much all the labor economists in the country this morning are shocked,” Vankudre said Friday during a webinar after the jobs report was released. I think the question on everyone’s mind is, ‘How can the labor market keep getting stronger and stronger, and how can this keep happening while at the same time we are seeing prices come down?’”

    Instead of lending credence to what was a bubbling belief in a soft landing, Friday’s jobs report only seems to beg more questions about not only the state of the economy, but also of the Federal Reserve’s attempts to hammer down high inflation.

    On Wednesday, the Fed concluded its first policymaking meeting of 2023 by green-lighting a quarter-point interest rate hike — the smallest since March — as a reflection of progress in its fight to lower inflation.

    The more moderate increase had been long telegraphed and came despite a hotter-than-expected December Job Openings and Labor Turnover Survey (JOLTS) report, which showed job openings grew to more than 11 million, or 1.9 available jobs for every job seeker.

    Fed officials remain laser focused on wages and inflation, and are seeing some progress there, said Elizabeth Crofoot, Lightcast senior economist. Fluctuations are to be expected in any economic data, and it’s (always) important to remember that “one month does not make a trend,” especially for January data, she said.

    “I think [Fed officials] are going to say, ‘Let’s continue to keep our eye on the data,’ and they’re going to hold steady until they see that inflation rate come down,” Crofoot said.

    The January jobs report shouldn’t trigger a wholesale change of what Fed members are thinking or what they were planning on doing before this report, Sarah House, senior economist at Wells Fargo, told CNN.

    “I think it suggests that the labor market remains still very strong, and there’s still a lot of wage pressures coming from that strong labor market that the Fed needs to contend with if it’s going to get inflation back to 2% on a sustained basis,” House said, noting the Fed’s target inflation rate.

    The Covid pandemic was a tremendous shock to global economies, and the US labor force is still showing the effects of historic employment losses, sudden shifts in consumer behavior, discombobulated supply chains, and efforts to return to a state of normality.

    The employment recovery since 2021 has been historically robust, with the monthly job gains larger than anything seen on record.

    January’s jobs report came with added complexity, because it included annual updates to populations estimates and revisions to employer survey data.

    “Now we know both [2021 and 2022] had faster job growth than we previously realized,” said University of Michigan economists Betsey Stevenson and Benny Doctor in a statement Friday. “The patterns remain the same: Job growth accelerated in the second half of 2021 before slowing in the first half of 2022 and slowing further in the second half of 2022.”

    The January reports also bring with them “seasonal noise,” said Joe Brusuelas, principal and chief economist for RSM US.

    “I’m advising policymakers and clients to ignore the topline number [of 517,000],” he said, noting it’s likely a function of seasonal adjustments and a reflection of swings in hiring activity and traditional cutbacks that take place from mid-December to mid-January.

    “That being said, even if a downward revision takes away 200,000 or so off the top, you still are sitting at around 300,000,” he added.

    “The job market is clearly too robust at this time to re-establish price stability; therefore, the Federal Reserve is going to have to not only hike by 25 basis points at its March meeting, it’s going to have to do so at the May meeting,” he predicted.

    Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a Federal Open Market Committee meeting on February 01, 2023, in Washington, DC. The Fed announced a 0.25 percentage point interest rate increase to a range of 4.50% to 4.75%.

    Last summer, Fed Chair Jerome Powell warned that “some pain” (aka rising unemployment) would likely be felt as a result of the Fed’s sweeping efforts to tackle inflation.

    Yet Powell did not once utter the word “pain” during his press conference on Wednesday, said Mark Hamrick, senior economic analyst with Bankrate.

    “If they were to put money on it, I think Las Vegas oddsmakers would be doubling down right now on the soft landing scenario — not to say that’s the base case, per se, but the chances seem to be growing,” Hamrick said.

    “If anything, the global economic scenario has brightened in recent days and weeks — and we got a significant ray of sunshine with this January employment report, including all the revisions — but that’s not to say that consumers or businesses should be complacent with respect to an eventual risk of a recession,” he said.

    So for now, the chances of a soft landing remain unknown.

    “This is sort of a bumpy, turbulent ride to who knows where,” Crofoot said.

    [ad_2]

    Source link

  • Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

    Apple is the only US tech giant to have avoided significant layoffs. Will it last? | CNN Business

    [ad_1]



    CNN
     — 

    In less than three months, four of the big five US tech companies have cut tens of thousands of employees combined, shattering myths about the industry’s seemingly unstoppable growth in the process.

    But there has been one notable exception: Apple.

    To date, Apple

    (AAPL)
    has not announced any substantial cuts, thanks in part to slower headcount growth than some of its peers during the pandemic and continued demand for its core products. Some analysts think more modest cost cuts could be coming, however.

    The iPhone maker is set to report earnings results for the final three months of 2022 on Thursday after the bell. It is expected to post a rare year-over-year decline in revenue.

    While these expectations show the strain Apple’s business is under, Wedbush Securities’ Dan Ives said in a note this week that pent-up demand for upgrading iPhones remains strong. “Apple will likely cut some costs around the edges, but we do not expect mass layoffs from Cupertino this week,” Ives wrote.

    Tom Forte, a senior research analyst at DA Davison, agreed there will be staff reductions, but likely not as drastic as those at other large tech companies. “Apple will cut headcount,” he said in a recent interview on Bloomberg TV, but suggested the cuts would come through attrition or reductions at the retail level.

    “While they haven’t done so yet, like everyone else, they will adjust their headcount for the current level of demand,” he said.

    Fueled by a surge in demand for digital products earlier in the pandemic, Big Tech went on a massive hiring spree.

    Amazon

    (AMZN)
    and Meta each doubled their headcount between the third quarter in 2019 and the third quarter 2022, according to data shared in the companies’ securities filings. Alphabet, meanwhile, grew its headcount 64% during that time, and Microsoft grew its staff by more than 50% over approximately the same period.

    Apple, by comparison, grew its headcount by a more modest 20%. As of September 2022, Apple said it had approximately 164,000 full-time employees.

    Many tech CEOs, with varying degrees of remorse, have blamed over-hiring in the early days of the pandemic for the mass layoffs now. As pandemic restrictions eased last year, the demand for digital services shifted back toward pre-pandemic levels. Inflation pinched consumer and business spending, and rising interest rates evaporated the easy money tech companies had tapped into. And one-by-one, amid the whiplash, household names in Silicon Valley began announcing widespread layoffs to adjust to the new environment.

    While Apple has not announced layoffs, its business has been strained in other ways. Like other Big Tech companies, it has faced threats of antitrust action in the United States and EU. Earlier this month, Apple also said CEO Tim Cook had agreed to a massive pay cut this year, following a shareholder vote on his compensation package after its stock fell about 27% in 2022.

    As consumer spending tightened, global smartphone shipments plunged 18% in the fourth quarter of 2022, according to market research firm Canalys. Apple’s business also faced supply chain hurdles linked to China’s Covid lockdowns and unrest that hit a key production site in Zhengzhou, China late last year.

    Still, Apple’s business is weathering the downturn better than some of its fellow tech giants. In its most-recent earnings report, the company reported sales grew 8% year-over-year and that the company hit a September quarter revenue record for iPhone.

    Thursday’s earnings results will show whether Apple can keep defying gravity.

    “Apple continues to innovate with high-quality, industry-leading products supported by a powerful digital platform,” analysts at Monness, Crespi and Hardt wrote in an investor note Tuesday. “However, regulatory headwinds persist and we believe the darkest days of this downturn are ahead of us.”

    [ad_2]

    Source link

  • American volunteer aid worker killed in Bakhmut while helping Ukrainian civilians | CNN

    American volunteer aid worker killed in Bakhmut while helping Ukrainian civilians | CNN

    [ad_1]



    CNN
     — 

    An American volunteer aid worker, Pete Reed, was killed in the eastern Ukrainian city of Bakhmut on Thursday while aiding civilians, according to a statement from Global Response Medicine, the humanitarian aid group he founded.

    Reed, a US Marine veteran, was listed as “killed while rendering aid” on a mission with another organization, GRM said in a statement posted on social media.

    “Yesterday, GRM founder Pete Reed was killed in Bakhmut, Ukraine. Pete was the bedrock of GRM, serving as Board President for 4 years. In January, Pete stepped away from GRM to work with Global Outreach Doctors on their Ukraine mission and was killed while rendering aid,” according to a post shared on Instagram.

    “This is a stark reminder of the perils rescue and aid workers face in conflict zones as they serve citizens caught in the crossfire. Pete was just 33 years old, but lived a life in service of others, first as a decorated US Marine and then in humanitarian aid. GRM will strive to honor his legacy and the selfless service he practiced,” the statement said.

    Reed was also listed as the Ukraine country director on the Global Outreach Doctors’ website.

    A US State Department spokesperson confirmed “the recent death of a US citizen in Ukraine” when asked for comment.

    “We are in touch with the family and providing all possible consular assistance,” the State Department spokesperson said. “Out of respect for the privacy of the family during this difficult time, we have nothing further to add.”

    Reed’s wife, Alex Kay Potter, wrote on Instagram that her husband not only lived for his duty but apparently died saving another team member’s life.

    “He was evacuating civilians and responding to those wounded when his ambulance was shelled. He died doing what he was great at, what gave him life, and what he loved, and apparently by saving a team member with his own body,” the post said.

    Reed started his humanitarian career working after Superstorm Sandy hit his home state of New Jersey, according to the biography pages on the Global Response Medicine and Global Outreach Doctors websites.

    Reed led medical teams during the Battle for Mosul in Iraq, treating over 10,000 trauma patients, according to the websites.

    [ad_2]

    Source link

  • Japan’s workers haven’t had a raise in 30 years. Companies are under pressure to pay up | CNN Business

    Japan’s workers haven’t had a raise in 30 years. Companies are under pressure to pay up | CNN Business

    [ad_1]


    Hong Kong/Tokyo
    CNN
     — 

    Hideya Tokiyoshi started his career as an English teacher in Tokyo about 30 years ago.

    Since then, his salary has stayed pretty much the same. That’s why, three years ago, after giving up hopes for higher pay, the schoolteacher decided to start writing books.

    “I feel lucky, as writing and selling books gives me an additional income stream. If not for that, I would’ve stayed stuck in the same wage loop,” Tokiyoshi, now 54, told CNN. “That’s why I was able to survive.”

    Tokiyoshi is part of a generation of workers in Japan who have barely gotten a raise throughout their working lives. Now, as prices rise after decades of deflation,the world’s third largest economy is being forced to reckon with the major problem of falling living standards, and companies are facing intense political pressure to pay more.

    Japanese Prime Minister Fumio Kishida is urging businesses to help workers keep up with higher living costs. Last month, he called on companies to hike pay at a level above inflation, with some already heeding the call.

    Like other parts of the world, inflation in Japan has become a major headache. In the year to December, core consumer prices rose 4%. That’s still low by comparison with America or Europe, but represents a 41-year high for Japan, where people are more used to prices going backwards.

    “In a country where you haven’t had nominal wage growth over 30 years, real wages are declining quite rapidly as a result [of inflation],” Stefan Angrick, a Tokyo-based senior economist at Moody’s Analytics, told CNN.

    Last month, Japan recorded its biggest drop in earnings, once inflation is taken into account, in nearly a decade.

    In 2021, the average annual paycheck in Japan was $39,711, compared with $37,866 in 1991, according to data from the Organisation for Economic Co-operation and Development (OECD).

    That means workers got a pay bump of less than 5%, compared to a rise of 34% in other Group of Seven economies, such as France and Germany, over the same period.

    Experts have pointed to a series of reasons for the stagnant wages. For one, Japan has long grappled with the opposite of what it’s facing now: low prices. Deflation started in the mid-1990s, because of a strong yen — which pushed down the cost of imports — and the bursting of a domestic asset bubble.

    “For the past 20 years, basically, there has been no change in consumer price inflation,” said Müge Adalet McGowan, senior economist for the Japan desk at the OECD.

    Until now, consumers wouldn’t have taken a hit to their wallets or felt the need to demand better pay, she added.

    But as inflation rises, people are likely to start making “strong” complaints about the lack of raises, predicted Shintaro Yamaguchi, an economics professor at the University of Tokyo.

    Experts say Japan’s wages have also suffered because it lags in another metric: its productivity rate.

    The country’s output, measured by how much workers add to a country’s GDP per hour, is lower than the OECD average, and “probably the biggest reason” for flat wages, according to Yamaguchi.

    “Generally, wages and productivity growth go hand-in-hand together,” McGowan said. “When there’s productivity growth, firms perform better and [when] they do better, they can offer higher wages.”

    She said Japan’s aging population was an additional issue because an older labor force tends to equate to lower productivity and wages. The way people are working is also changing.

    In 2021, nearly 40% of Japan’s total workforce was employed part-time or worked irregular hours, up from roughly 20% in 1990, according to McGowan.

    “As the share of these non-regular workers has gone up, of course the average wages also stay low, because they make less,” she said.

    People crossing a street in the Ginza area of Tokyo in November. The shape of Japan's workforce is shifting, with more people working part-time.

    Japan’s unique work culture is contributing to wage stagnation, according to economists.

    Many people work in the traditional “lifetime employment” system, where companies go to extraordinary lengths to keep workers on the payroll for life, Angrick said.

    That means they’re often very cautious about raising wages in good times so that they have the means to protect their workers when times are tough.

    “They don’t want to lay people off. So they need to have that buffer in order to be able to keep them on the payroll when a crisis hits,” he said.

    Its seniority-based pay system, where workers are paid based on their rank and length of service rather than performance, lowers incentives for people to change jobs, which in other countries generally helps push up wages, according to McGowan.

    “The biggest issue in Japan’s labor market is the stubborn insistence on pay by seniority,” Jesper Koll, a prominent Japan strategist and investor, previously told CNN. “If genuine merit-based pay were introduced, there would be much more job switching and career climbing.”

    Last month, Kishida warned the economy was at stake, saying Japan risked falling into stagflation if wage rises continued to fall behind price increases. The term refers to a period of high inflation and stagnant economic growth.

    Raising wages by 3% or more a year was already a core goal of Kishida’s administration. Now, the prime minister wants to take another step further, with plans to create a more formalized system.

    Asked for details, a government spokesperson told CNN that new “comprehensive economic measures will include expanded support for wage increases, integrated with an improvement in productivity.”

    Authorities plan to roll out guidelines for companies by June, said a representative from the Ministry of Health, Labor and Welfare.

    Hideya Tokiyoshi, a teacher in Japan, told CNN he had barely seen his salary go up over the last 30 years.

    Meanwhile, the country’s largest labor group, the Japanese Trade Union Confederation or Rengo, is now demanding wage increases of 5% at this year’s talks with the management of various companies. The annual negotiations kick off this month.

    In a statement, Rengo said it was making the push because workers were making “inferior wages on a global scale,” and needed help with rising prices.

    Some companies have already acted. Fast Retailing

    (FRCOF)
    , the company behind Uniqlo and Theory, announced last month that it would boost salaries in Japan by up to 40%, acknowledging that compensation had “remained low” in the country in recent years.

    While inflation was a factor, the company wanted to align “with global standards, to be able to increase our competitiveness,” a Fast Retailing spokesperson told CNN.

    According to a Reuters poll released last month, more than half of the country’s big firms are planning to raise wages this year.

    Suntory, one of Japan’s biggest beverage makers, may be one of them.

    Customers browsing for vegetables at a supermarket in Tokyo in January. Japanese Prime Minister Fumio Kishida is urging businesses to hike pay and help workers keep up with the higher costs of living.

    CEO Takeshi Niinami is weighing a 6% raise for its Japanese workforce of approximately 7,000 people, according to a spokesperson, adding that it was subject to negotiation with a union.

    The news may prompt other businesses to follow suit.

    “If some of the biggest companies in Japan raise wages, many other firms will follow,” if only to stay competitive, said Yamaguchi. “Many firms look at what other firms do.”

    [ad_2]

    Source link

  • The US economy added a whopping 517,000 jobs in January | CNN Business

    The US economy added a whopping 517,000 jobs in January | CNN Business

    [ad_1]


    Minneapolis
    CNN
     — 

    The US economy added an astonishing 517,000 jobs in January, showing that the labor market isn’t ready to cool down just yet.

    The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969 — two months before Neil Armstrong stepped on the moon — according to new data released Friday by the Bureau of Labor Statistics.

    Economists were expecting 185,000 jobs would be added last month, based on consensus estimates on Refinitiv.

    “With 517,000 new jobs added in January 2023 and the unemployment rate at 3.4%, this is a blockbuster report demonstrating that the labor market is more like a bullet train,” Becky Frankiewicz, president and chief commercial officer of ManpowerGroup, said Friday.

    The shockingly strong monthly jobs gain — a number that several economists cautioned was influenced by seasonal factors and is subject to future revisions — bucks a trend of five consecutive months of moderating job growth during the latter half of 2022.

    “The blowout 517,000 increase in total employment was almost certainly a function of seasonal noise and traditional churn in early-year job and wage environment and exaggerates what is already a robust trend in hiring,” Joe Brusuelas, principal and chief economist with RSM US, said in a statement.

    Nonetheless the juggernaut of a report may cause complications for the Federal Reserve, which has been trying to tame high inflation with higher interest rates, said Seema Shah, chief global strategist of Principal Asset Management.

    “Is [Fed Chair Jerome] Powell now wondering why he didn’t push back on the loosening in financial conditions?” Shah said in a statement. “It’s difficult to see how wage pressures can possibly soften sufficiently when jobs growth is as strong as this, and it’s even more difficult to see the Fed stop raising rates and entertain ideas of rate cuts when there is such explosive economic news coming in.”

    “The market is going to go through a roller coaster ride as it tries to decide if this is good or bad news. For now, though, looks like the US economy is doing absolutely fine,” she said.

    Still, the report also showed that wage growth moderated on an annual basis: Average hourly earnings fell 0.4 percentage points to 4.4% year over year. Monthly wage gains held steady at 0.3%.

    “It’s quite remarkable to see such a realignment of the employment picture coinciding with an easing of wage pressure,” Mark Hamrick, senior economic analyst for Bankrate, said in an interview. “I think that might be part of this report that could help keep blood pressures down among Federal Reserve officials in the near term.”

    Additionally, average weekly hours jumped to 34.7 hours from 34.3, and employment in temporary help services rebounded after two months of declines, indicating further demand for labor, noted Julia Pollak, chief economist at ZipRecruiter.

    The report also showed an increase in the closely watched labor force participation rate to 62.4% from 62.3%. However, the increase in the share of people working or looking to work was a function of the BLS’ annual benchmark revisions to its household survey, one of two surveys that factor in to the monthly jobs report, noted PNC chief economist Gus Faucher.

    Had it not been for the revisions, that number would have been unchanged at 62.3%, he added.

    “The labor market is structurally tighter post-pandemic,” he said.

    Every January, the BLS makes revisions on its employment data to reflect updated population estimates and other factors.

    “On net, you saw stronger hiring in 2022 than what was initially reported,” said Sarah House, chief economist with Wells Fargo, told CNN.

    Average monthly job growth in 2022 was revised up from an average of 375,000 per month to 401,000, she said.

    Seasonality questions aside, other trends do align to support a strong January 2023 jobs report, Bankrate’s Hamrick said.

    “When you have a number of things lining up, almost like a crime scene investigation, it tends to lend some credibility to that question of believability,” he said of the surprising half-a-million-plus job gains. “What are the things that are lining up? The continued remarkably low level of jobless claims, the rise in job openings, the increase in labor force participation.”

    The gains were also widespread across industries, with job growth led by leisure and hospitality, professional and business services, and health care, according to the BLS report.

    Industries that shed jobs last month included motor vehicles and parts (down 6,500 jobs), utilities (down 700 jobs) and information (down 5,000 jobs).

    In recent months, mass layoff announcements — especially from Big Tech — had spurred concern that the cutbacks were a harbinger of broader cutbacks to come.

    That doesn’t appear to be the case, considering jobless claims have remained historically low, job openings haven’t slipped and job gains remain strong, said Giacomo Santangelo, economist at Monster.

    “The news is talking about big names laying off, but we don’t really hear what happens at small firms with less than 200 employees,” he said. “What we’re seeing at Monster is a lot of firms, a majority of firms, are looking to hire.”

    The glut of available jobs — there are 1.9 open positions for every one job seeker — coupled with skills that are in high demand mean that workers are likely finding jobs quickly, he said. Additionally, those laid off by large technology firms likely received generous severance packages, so not all are filing for unemployment benefits.

    Friday’s report showed that the median duration of unemployment was 9.1 weeks, just a smidge above the pre-pandemic level of 8.9 weeks in February 2020.

    [ad_2]

    Source link

  • Offices are more than 50% filled for the first time since the pandemic started | CNN Business

    Offices are more than 50% filled for the first time since the pandemic started | CNN Business

    [ad_1]


    New York
    CNN
     — 

    Nearly three years after the pandemic began, American offices are finally more than halfway filled again as workers have gradually returned to the office.

    Office occupancy across 10 major US cities crossed 50.4% of pre-pandemic levels for the first time since early 2020, according to security swipe tracker Kastle Systems. That marks the first time occupancy has crossed the 50% mark since March 2020, when many offices sent workers home because of Covid.

    Workers still aren’t coming back to the office consistently or every day: Last week’s data showed that Friday was the lowest day of occupancy and Tuesday was the highest. Kastle noted that all 10 cities that it tracks “have now reached occupancy rates above 40%.”

    Major companies have begun to crack down on employees who are reluctant to return. Disney is ordering corporate employees to return to offices four days a week beginning March 1. Starbucks

    (SBUX)
    also recently instituted a three-days-a-week office schedule.

    Apple

    (AAPL)
    has also called for its corporate workers to be in the office at least three days a week, sparking tensions with some of its staffers. Snapchat’s parent company recently asked workers to return to the office 80% of the time, or the equivalent of four days a week, beginning this month.

    However, Amazon

    (AMZN)
    CEO Andy Jassy isn’t looking to force the company’s workers back into the office anytime soon, saying in September that it “doesn’t have a plan to require people to come back.”

    Dozens of YouTube contractors are going on strike Friday to protest what they describe as unreasonable return-to-office policies that could force many of them to relocate from other states.

    The protest involves more than 40 contractors for YouTube Music, according to the Alphabet Workers Union, which is backing the strike. The contractors work for a third-party company called Cognizant, and they are calling for the firm and YouTube-parent Google to revise the in-office policies to be more flexible.

    The strike was first reported by Axios, which said the contractors voted to strike after receiving orders to report to an office in Austin starting on Monday. Google declined to comment.

    According to the Alphabet Workers Union, roughly a quarter of the striking workers are based outside of Texas, and a majority of the contractors had been initially hired as remote workers.

    “On average, YouTube music workers are paid $19 an hour and cannot afford the relocation, travel or childcare costs associated with in-person work,” the group said on its Facebook page. “The upcoming return to office date threatens the livelihoods of workers who do not live in the Austin area.”

    With a global labor shortage and a stubbornly high number of job openings, forcing people back into the office could backfire. Leaders who require workers to be on site for more days than staffers prefer — and who threaten them with pay cuts or termination if they don’t comply — may be creating a longer-term problem, workplace experts say.

    Many leaders’ arguments for coming in to work are now focused on the need to preserve company culture, collaboration and mentoring of younger workers.

    Face time is important, but workplace research shows that neither culture nor collaboration are necessarily optimized just by having employees spend 40 hours a week in the same building. It also shows that when employees and teams are allowed to schedule their in-person versus remote time, it can boost engagement, morale and retention.

    – CNN’s Jeanne Sahadi contributed to this report.

    [ad_2]

    Source link