ReportWire

Tag: labor and employment

  • Elon Musk says he will step down as Twitter CEO if voted out by a poll he tweeted | CNN Business

    Elon Musk says he will step down as Twitter CEO if voted out by a poll he tweeted | CNN Business

    [ad_1]


    New York
    CNN
     — 

    Twitter’s mercurial new boss may be out the door after less than two months on the job, if results of a Twitter poll go against him.

    Elon Musk tweeted a poll Sunday evening asking people to vote on whether he should step down as Twitter’s CEO. Musk said he would abide by the poll’s results.

    As of Sunday evening, “Yes” was winning by a margin of 58% to 42%.

    In several follow-up tweets, Musk suggested that he was serious about leaving and made a vague threat about Twitter’s future if he is voted out.

    “As the saying goes, be careful what you wish, as you might get it,” Musk tweeted.

    Since buying Twitter for $44 billion and taking over as CEO in late October, Musk has journeyed from one controversy to the next.

    A brief and incomplete recap:

    – Musk immediately laid off several top executives and laid off about half of Twitter’s staff.
    – He then gave an ultimatum to the remaining staff that they need to do “extremely hardcore” work or leave — and another thousand or so employees headed out the door.
    – Musk has fired employees who openly disagreed with him and publicly named and shamed former employees who were engaged in difficult moderation discussions as part of the ongoing “Twitter Files.”
    – Musk has also started, stopped and started again a revised verification system that costs $8 for a blue check mark and initially led to widespread account spoofing.
    – Musk has frequently changed Twitter’s rules by executive fiat and with no notice, banning people who violate the new rules — including several tech journalists and an account that tracked his jet. Musk had once tweeted that allowing the ElonJet account to remain on Twitter demonstrated his commitment to free speech on the platform.
    – He has waded deeply into the culture wars, allowing some of the platform’s permanently banned accounts back on, including former President Donald Trump and many people who had been engaged in misinformation, conspiracy theories or hate speech.

    Meanwhile, brands have been removing their advertising from Twitter left and right. Musk has frequently stated that Twitter’s finances are dire.

    Replying to a tweet Sunday, in which MIT artificial intelligence researcher Lex Fridman said he would take the CEO job, Musk hinted he hasn’t been completely happy with his new gig.

    “You must like pain a lot,” Musk tweeted, noting the company “has been in the fast lane to bankruptcy since May.”

    Yet Musk denied that he has a new CEO in mind.

    “No one wants the job who can actually keep Twitter alive. There is no successor,” Musk tweeted. “The question is not finding a CEO, the question is finding a CEO who can keep Twitter alive.”

    [ad_2]

    Source link

  • How much should you tip your barista? | CNN Business

    How much should you tip your barista? | CNN Business

    [ad_1]


    New York
    CNN
     — 

    A new checkout trend is sweeping across America, making for an increasingly awkward experience: digital tip jars.

    You order a coffee, an ice cream, a salad or a slice of pizza and pay with your credit card or phone. Then, an employee standing behind the counter spins around a touch screen and slides it in front of you. The screen has a few suggested tip amounts – usually 10%, 15% or 20%. There’s also often an option to leave a custom tip or no tip at all.

    The worker is directly across from you. Other customers are standing behind, waiting impatiently and looking over your shoulder to see how much you tip. And you must make a decision in seconds. Oh lord, the stress.

    Customers and workers today are confronted with a radically different tipping culture compared to just a few years ago — without any clear norms. Although consumers are accustomed to tipping waiters, bartenders and other service workers, tipping a barista or cashier may be a new phenomenon for many shoppers. It’s being driven in large part by changes in technology that have enabled business owners to more easily shift the costs of compensating workers directly to customers.

    “I don’t know how much you’re supposed to tip and I study this,” said Michael Lynn, a professor of consumer behavior and marketing at Cornell University and one of the leading researchers on US tipping habits.

    Adding to the changing dynamics, customers were encouraged to tip generously during the pandemic to help keep restaurants and stores afloat, raising expectations. Total tips for full-service restaurants were up 25% during the latest quarter compared to a year ago, while tips at quick-service restaurants were up 17%, according to data from Square.

    The shift to digital payments also accelerated during the pandemic, leading stores to replace old-fashioned cash tip jars with tablet touch screens. But these screens and the procedures for digital tipping have proven more intrusive than a low-pressure cash tip jar with a few bucks in it.

    Customers are overwhelmed by the number of places where they now have the option to tip and feel pressure about whether to add a gratuity and for how much. Some people deliberately walk away from the screen without doing anything to avoid making a decision, say etiquette experts who study tipping culture and consumer behavior.

    Tipping can be an emotionally charged decision. Attitudes towards tipping in these new settings vary widely.

    Some customers tip no matter what. Others feel guilty if they don’t tip or embarrassed if their tip is stingy. And others eschew tipping for a $5 iced coffee, saying the price is already high enough.

    “The American public feels like tipping is out of control because they’re experiencing it in places they’re not used to,” said Lizzie Post, co-president of the Emily Post Institute and its namesake’s great-great-granddaughter. “Moments where tipping isn’t expected makes people less generous and uncomfortable.”

    Starbucks has rolled out tipping this year as an option for customers paying with credit and debit cards. Some Starbucks baristas told CNN that the tips are adding extra money to their paychecks, but customers shouldn’t feel obligated to tip every time.

    One barista in Washington State said that he understands if a customer doesn’t tip for a drip coffee order. But if he makes a customized drink after spending time talking to the customer about exactly how it should be made, “it does make me a little bit disappointed if I don’t receive a tip.”

    “If someone can afford Starbucks every day, they can afford to tip on at least a few of those trips,” added the employee, who spoke under the condition of anonymity.

    The option to tip is seemingly everywhere today, but the practice has a troubled history in the United States.

    Tipping spread after the Civil War as an exploitative measure to keep down wages of newly-freed slaves in service occupations. Pullman was the most notable for its tipping policies. The railroad company hired thousands of Black porters, but paid them low wages and forced them to rely on tips to make a living.

    Critics of tipping argued that it created an imbalance between customers and workers, and several states passed laws in the early 1900s to ban the practice.

    In “The Itching Palm,” a 1916 diatribe on tipping in America, writer William Scott said that tipping was “un-American” and argued that “the relation of a man giving a tip and a man accepting it is as undemocratic as the relation of master and slave.”

    But tipping service workers was essentially built into law by the 1938 Fair Labor Standards Act, which created the federal minimum wage that excluded restaurant and hospitality workers. This allowed the tipping system to proliferate in these industries.

    In 1966, Congress created a “subminimum” wage for tipped workers. The federal minimum wage for tipped employees has stood at $2.13 per hour — lower than the $7.25 federal minimum — since 1991, although many states require higher base wages for tipped employees. If a server’s tips don’t add up to the federal minimum, the law says that the employer must make up the difference. But this doesn’t always happen. Wage theft and other wage violations are common in the service industry.

    The Department of Labor considers any employee working in a job that “customarily and regularly” receives more than $30 a month in tips as eligible to be classified a tipped worker. Experts estimate there are more than five million tipped workers in the United States.

    Just how much to tip is entirely subjective and varies across industries, and the link between the quality of service and the tip amount is surprisingly weak, Lynn from Cornell said.

    He theorized that a 15% to 20% tip at restaurants became standard because of a cycle of competition among customers. Many people tip to gain social approval or with the expectation of better service. As tip levels increase, other customers start tipping more to avoid any losses in status or risk poorer service.

    The gig economy has also changed tipping norms. An MIT study released in 2019 found that customers are less likely to tip when workers have autonomy over whether and when to work. Nearly 60% of Uber customers never tip, while only about 1% always tip, a 2019 University of Chicago study found.

    What makes it confusing, Lynn said, is that “there’s no central authority that establishes tipping norms. They come from the bottom up. Ultimately, it’s what people do that helps establish what other people should do.”

    You should almost always tip workers earning the subminimum wage such as restaurant servers and bartenders, say advocates and tipping experts.

    The option to tip at coffee shops has become ubiquitous.

    When given the option to tip in places where workers make an hourly wage, such as Starbucks baristas, customers should use their discretion and remove any guilt from their decision, etiquette experts say. Tips help these workers supplement their income and are always encouraged, but it’s okay to say no.

    Etiquette experts recommend that customers approach the touch screen option the same way they would a tip jar. If they would leave change or a small cash tip in the jar, do so when prompted on the screen.

    “A 10% tip for takeaway food is a really common amount. We also see change or a single dollar per order,” said Lizzie Post. If you aren’t sure what to do, ask the worker if the store has a suggested tip amount.

    Saru Jayaraman, president of One Fair Wage, which advocates to end subminimum wage policies, encourages customers to tip. But tips should never count against service workers’ wages, and customers must demand that businesses pay workers a full wage, she said.

    “We’ve got to tip, but it’s got to be combined with telling employers that tips have to be on top, not instead of, a full minimum wage,” she said.

    [ad_2]

    Source link

  • Amazon warehouse workers in UK vote to go on strike | CNN Business

    Amazon warehouse workers in UK vote to go on strike | CNN Business

    [ad_1]



    CNN
     — 

    Amazon warehouse workers at a facility in the United Kingdom plan to go on strike, their union confirmed to CNN on Friday, in a move that’s being billed as a first for the company’s workers in the country.

    The GMB union, which represents workers in a range of industries in the UK, said that hundreds of Amazon workers at a warehouse in Coventry overwhelmingly voted for the strike, which is expected to take place in the new year.

    The labor action stems from workers’ dissatisfaction over Amazon’s proposed pay raises, according to the union. It also comes as soaring inflation in the UK has forced households to grapple with skyrocketing food and energy costs.

    “Amazon workers in Coventry have made history – they will be the first ever in the UK to take part in a formal strike,” Amanda Gearing, GMB senior organizer, said in a statement to CNN on Friday. “The fact that they are being forced to go on strike to win a decent rate of pay from one of the world’s most valuable companies should be a badge of shame for Amazon.”

    “Amazon can afford to do better,” Gearing added, noting that it is “not too late to avoid strike action,” and urged Amazon to come to the bargaining table to “improve the pay and conditions of workers.”

    In a statement to CNN on Friday, a UK Amazon spokesperson touted the company’s pay and benefits. “We appreciate the great work our teams do throughout the year and we’re proud to offer competitive pay which starts at a minimum of between £10.50 and £11.45 per hour, depending on location.”

    “This represents a 29 per cent increase in the minimum hourly wage paid to Amazon employees since 2018,” the statement added. “On top of this, we’re pleased to have announced that full-time, part-time and seasonal frontline employees will receive an additional one-time special payment of up to £500 as an extra thank you.”

    The move from Amazon workers in the UK also comes as Amazon workers in the United States continue to organize and push for collective bargaining rights.

    Amazon workers at a warehouse in Staten Island, New York, made history earlier this year when they voted to form the first-ever labor union at one of the company’s US facilities. Despite the landmark victory for the worker group, known as the Amazon Labor Union, the company has yet to formally recognize the union or come to the bargaining table.

    Amazon CEO Andy Jassy suggested in remarks last month that the company’s legal battle with the union is “far from over,” despite the National Labor Relations Board indicating the union is on the cusp of being certified.

    Other recent attempts to unionize at Amazon warehouses in the United States have come up short.

    [ad_2]

    Source link

  • Taiwan’s military has a problem: As China fears grow, recruitment pool shrinks | CNN

    Taiwan’s military has a problem: As China fears grow, recruitment pool shrinks | CNN

    [ad_1]


    Taipei, Taiwan
    CNN
     — 

    Taiwan has noticed a hole in its defense plans that is steadily getting bigger. And it’s not one easily plugged by boosting the budget or buying more weapons.

    The island democracy of 23.5 million is facing an increasing challenge in recruiting enough young men to meet its military targets and its Interior Ministry has suggested the problem is – at least in part – due to its stubbornly low birth rate.

    Taiwan’s population fell for the first time in 2020, according to the ministry, which warned earlier this year that the 2022 military intake would be the lowest in a decade and that a continued drop in the youth population would pose a “huge challenge” for the future.

    That’s bad news at a time when Taiwan is trying to bolster its forces to deter any potential invasion by China, whose ruling Communist Party has been making increasingly belligerent noises about its determination to “reunify” with the self-governed island – which it has never controlled – by force if necessary.

    And the outlook has darkened further with the release of a new report by Taiwan’s National Development Council projecting that by 2035 the island can expect roughly 20,000 fewer births per year than the 153,820 it recorded in 2021. By 2035, Taiwan will also overtake South Korea as the jurisdiction with the world’s lowest birth rate, the report added.

    Such projections are feeding into a debate over whether the government should increase the period of mandatory military service that eligible young men must serve. Currently, the island has a professional military force made up of 162,000 (as of June this year) – 7,000 fewer than the target, according to a report by the Legislative Yuan. In addition to that number, all eligible men must serve four months of training as reservists.

    Changing the mandatory service requirement would be a major U-turn for Taiwan, which had previously been trying to cut down on conscription and shortened the mandatory service from 12 months as recently as 2018. But on Wednesday, Taiwan’s Minister of National Defence Chiu Kuo-cheng said such plans would be made public before the end of the year.

    That news has met with opposition among some young students in Taiwan, who have voiced their frustrations on PTT, Taiwan’s version of Reddit, even if there is support for the move among the wider public.

    A poll by the Taiwanese Public Opinion Foundation in March this year found that most Taiwanese agreed with a proposal to lengthen the service period. It found that 75.9% of respondents thought it reasonable to extend it to a year; only 17.8% were opposed.

    Many experts argue there is simply no other option.

    Su Tzu-yun, a director of Taiwan’s Institute for National Defense and Security Research, said that before 2016, the pool of men eligible to join the military – either as career soldiers or as reservists – was about 110,000. Since then, he said, the number had declined every year and the pool would likely be as low as 74,000 by 2025.

    And within the next decade, Su said, the number of young adults available for recruitment by the Taiwanese military could drop by as much as a third.

    “This is a national security issue for us,” he said. “The population pool is decreasing, so we are actively considering whether to resume conscription to meet our military needs.

    “We are now facing an increasing threat (from China), and we need to have more firepower and manpower.”

    Taiwan’s low birth rate – 0.98 – is far below the 2.1 needed to maintain a stable population, but it is no outlier in East Asia.

    In November, South Korea broke its own world record when its birth rate dropped to 0.79, while Japan’s fell to 1.3 and mainland China hit 1.15.

    Even so, experts say the trend poses a unique problem for Taiwan’s military, given the relative size of the island and the threats it faces.

    China has been making increasingly aggressive noises toward the island since August, when then-US House Speaker Nancy Pelosi controversially visited Taipei. Not long after she landed in Taiwan, Beijing also launched a series of unprecedented military exercises around the island.

    Since then, the temperature has remained high – particularly as Chinese leader Xi Jinping told a key Communist Party meeting in October that “reunification” was inevitable and that he reserves the option of taking “all measures necessary.”

    Chang Yan-ting, a former deputy commander of Taiwan’s air force, said that while low birth rates were common across East Asia, “the situation in Taiwan is very different” as the island was facing “more and more pressure (from China) and the situation will become more acute.”

    “The United States has military bases in Japan and South Korea, while Singapore does not face an acute military threat from its neighbors. Taiwan faces the greatest threat and declining birth rate will make the situation even more serious,” he added.

    Roy Lee, a deputy executive director at Taiwan’s Chung-hua Institution for Economic Research, agreed that the security threats facing Taiwan were greater than those in the rest of the region.

    “The situation is more challenging for Taiwan, because our population base is smaller than other countries facing similar problems,” he added.

    Taiwan’s population is 23.5 million, compared to South Korea’s 52 million, Japan’s 126 million and China’s 1.4 billion.

    Besides the shrinking recruitment pool, the decline in the youth population could also threaten the long-term performance of Taiwan’s economy – which is itself a pillar of the island’s defense.

    Taiwan is the world’s 21st largest economy, according to the London-based Centre for Economics and Business Research, and had a GDP of $668.51 billion last year.

    Much of its economic heft comes from its leading role in the supply of semiconductor chips, which play an indispensable role in everything from smartphones to computers.

    Taiwan’s homegrown semiconductor giant TSMC is perceived as being so valuable to the global economy – as well as to China – that it is sometimes referred to as forming part of a “silicon shield” against a potential military invasion by Beijing, as its presence would give a strong incentive to the West to intervene.

    Lee noted that population levels are closely intertwined with gross domestic product, a broad measure of economic activity. A population decline of 200,000 people could result in a 0.4% decline in GDP, all else being equal, he said.

    “It is very difficult to increase GDP by 0.4%, and would require a lot of effort. So the fact that a declining population can take away that much growth is big,” he said.

    Taiwan’s government has brought in a series of measures aimed at encouraging people to have babies, but with limited success.

    It pays parents a monthly stipend of 5,000 Taiwan dollars (US$161) for their first baby, and a higher amount for each additional one.

    Since last year, pregnant women have been eligible for seven days of leave for obstetrics checks prior to giving birth.

    Outside the military, in the wider economy, the island has been encouraging migrant workers to fill job vacancies.

    Statistics from the National Development Council showed that about 670,000 migrant workers were in Taiwan at the end of last year – comprising about 3% of the population.

    Most of the migrant workers are employed in the manufacturing sector, the council said, the vast majority of them from Vietnam, Indonesia, Thailand and the Philippines.

    Lee said in the long term the Taiwanese government would likely have to reform its immigration policies to bring in more migrant workers.

    Still, there are those who say Taiwan’s low birth rate is no reason to panic, just yet.

    Alice Cheng, an associate professor in sociology at Taiwan’s Academia Sinica, cautioned against reading too much into population trends as they were affected by so many factors.

    She pointed out that just a few decades ago, many demographers were warning of food shortages caused by a population explosion.

    And even if the low birth rate endured, that might be no bad thing if it were a reflection of an improvement in women’s rights, she said.

    “The educational expansion that took place in the 70s and 80s in East Asia dramatically changed women’s status. It really pushed women out of their homes because they had knowledge, education and career prospects,” she said.

    “The next thing you see globally is that once women’s education level improved, fertility rates started declining.”

    “All these East Asian countries are really scratching their head and trying to think about policies and interventions to boost fertility rates,” she added.

    “But if that’s something that really, (women) don’t want, can you push them to do that?”

    [ad_2]

    Source link

  • Stephen Miller led-group emerges as top legal foe of Biden initiatives | CNN Politics

    Stephen Miller led-group emerges as top legal foe of Biden initiatives | CNN Politics

    [ad_1]



    CNN
     — 

    A conservative legal group led by former top Trump aide Stephen Miller has emerged as a frequent opponent to several Biden administration initiatives by mounting court challenges, succeeding in blocking policies they say are examples of reverse discrimination.

    Miller touts America First Legal as “the long-awaited answer to the (American Civil Liberties Union),” and his group has garnered several legal victories against the Biden administration in the past few weeks and months, most notably on issues of racial discrimination.

    The group has aired advertisements criticizing the Biden administration’s policies on LGBTQ rights and has filed a class-action lawsuit against Texas A&M University, claiming the college has “engaged in a discriminatory hiring practice, choosing which candidates to hire based on their race or sex.” That lawsuit is ongoing.

    In 2021, America First Legal was also successful in halting some Covid-19 relief funds under the Small Business Administration’s Restaurant Revitalization Fund to women, veterans and minority business owners who could apply for grants during a priority period in its initial rollout, a move Miller argued was an “unconstitutional and racially discriminatory scheme.”

    Perhaps most notably, the organization was involved in legal challenges that forced the Biden administration to create a work-around on getting debt relief for farmers of color. An effort passed as part of the Covid-19-related American Rescue Plan in 2021 was challenged in court by a litany of lawsuits by some White farmers who complained that the effort to remedy longstanding inequities by wiping the debt of only farmers of color was itself discriminatory.

    America First Legal filed a lawsuit against the effort, representing Texas Agriculture Commissioner Sid Miller and a group of White farmers in the state who also argued that the program is unconstitutional because of racial discrimination. The lawsuits led to an injunction that blocked the debt relief payments.

    Attorneys argued that the USDA’s definition of “socially disadvantaged farmer and rancher” that excludes Whites is “patently unconstitutional.” They also said the agency was violating the Constitution by “discriminating on the grounds of race, color, and national origin” in the program and that the court should prohibit the clause from being enforced.

    Ultimately, the administration abandoned the effort and quietly tucked a couple provisions into the Inflation Reduction Act that passed over the summer to allocate debt relief that is eligible to farmers of all backgrounds, regardless of race.

    CNN has reached out to America First Legal for comment.

    Several Black farmers and social justice advocates have said Miller’s actions are harmful.

    “I want to set the record straight – no one is against White farmers in this country,” John Boyd Jr., 57, a fourth-generation farmer who is founder and president of the National Black Farmers Association, told CNN. He added that what Miller is doing to Black farmers through the legal challenges is “humiliating and the worst thing you can do for race-relations in this country.”

    Dorian Spence, a lawyer whose firm represented the Federation of Southern Cooperatives, a group of southern cooperatives that has been advocating for Black farmers in litigation brought by White farmers, told CNN that Miller’s group uses “grievance politics through the rule of law to try to exclude people of color broadly, but in certain pockets Black people specifically from areas of opportunity.”

    “America First sees an America that is increasingly White, White male-driven,” Spence said.

    [ad_2]

    Source link

  • Railroad workers hopeful Biden will act to give workers paid sick time | CNN Business

    Railroad workers hopeful Biden will act to give workers paid sick time | CNN Business

    [ad_1]


    New York
    CNN
     — 

    Railroad workers could get the paid sick days that were at the heart of their threat to go on strike – if the Biden administration steps in with an executive order.

    Workers have been unsuccessful getting their demands for paid sick leave met through months of negotiations with the freight rail companies, or through congressional action.

    But on Friday, 70 Democrats in Congress signed a letter asking for President Joe Biden or some federal agency to issue an order giving rail workers the seven sick days a year they were seeking.

    The letter pointed out that both the House and Senate supported legislation to do so, with some nominal Republican support in both chambers along with nearly unanimous Democratic support. But the legislation failed because it didn’t get the 60 votes it needed in the Senate.

    The White House did not immediately respond to a request for comment on the letter from the unions’ congressional allies.

    But officials with the rail unions said they have been talking to the administration about some kind of executive action to get them the sick time they’ve been seeking, and that they are hopeful action could be forthcoming.

    “I mean, the Biden administration has been helpful,” said Greg Hynes, national legislative director for the transportation department of the Sheet Metal, Air, Rail Transportation Union, (SMART-TD), the largest rail union representing about 28,000 conductors. “Of course, they want to do this. Whether they can do it, we’re going to find out.”

    The congressional letter said executive action, either by Biden himself, the Labor Department or the Federal Railroad Administration, is needed because the lack of paid sick days poses a safety hazard to the general public by having rail workers try to do their jobs when sick.

    “If a rail worker comes down with COVID, the flu, or some other illness and calls in sick, that worker will not only receive no pay, but will be penalized and, in some cases, fired. We cannot allow that to continue,” said the letter.

    The main lobbying group for the nation’s railroads, the Association of American Railroads, said it believes the question of sick days should be addressed in negotiations with the unions.

    “Following the conclusion of the latest bargaining round, the industry looks forward to using the new agreements as a springboard for further discussions on the structure of our paid leave benefits, enhancing schedule predictability, and addressing overall work-life balance interests,” said the AAR.

    “Railroads remain committed to working with their employees to address these priorities holistically and strike the right balance, be it as an industry or on a railroad-by-railroad basis with each union,” the AAR added.

    The railroads insist that the workers can use personal or vacation days if they are too sick to report to work.

    “If you wake up sick, no one wants you out on the railroad, and management does not want workers coming to work if they are sick,” said Ian Jefferies, CEO of the AAR, in an interview with CNN last month.

    The unions said that members could use their bank of paid time off when sick more easily in the past, but deep staff cuts in recent years have left the railroads so understaffed it is rare that workers can get approval to be off in those instances when they wake up not feeling well. If they do so, not only do they risk losing pay, they also risk being disciplined. And the AAR’s own statement on sick pay availability said workers can call off sick without penalty as long as “they maintain reasonable overall availability.”

    The Biden administration asked Congress to vote to block a strike by the unions that could have started this past Friday, saying a work stoppage would be too great a blow to the nation’s economy.

    The unions argued they needed the right to strike in order to win things they were seeking at the bargaining table, like sick days.

    But despite being disappointed most of the unions’ leadership have been restrained in criticizing Biden for imposing unpopular contracts on their members that did not include sick days.

    Asked if the reason that most union leaders did not criticize Biden’s decision was because they are hopeful that he will be willing to issue an executive order to get them the disputed sick days, Hynes replied, “I think you’re answering your own question.”

    The rail unions are planning rallies around the country in support of rail workers. The lack of sick days will be a major issue at the rallies.

    Among the speakers at the Washington DC rally will be Sen. Bernie Sanders, the main author of the congressional letter. That letter points out that President Barack Obama issued such a rule on federal contractors in 2015, but that it did not cover the unionized rail workers.

    “Over 115,000 rail workers in this country are looking to you to guarantee them the dignity at work they deserve and to ensure that our rail system is safe for its workers and for millions of Americans who cross rail tracks every day,” said the congressional letter. “Through executive order, agency rulemaking, and any other applicable authority, we ask that you take quick and decisive action to guarantee these workers paid sick leave.”

    [ad_2]

    Source link

  • Biden announces $2.5 billion loan to help GM and LG make EV batteries | CNN Politics

    Biden announces $2.5 billion loan to help GM and LG make EV batteries | CNN Politics

    [ad_1]



    CNN
     — 

    The US Department of Energy’s Loan Programs Office will announce Monday that it is issuing a $2.5 billion loan to help start three lithium battery manufacturing hubs in Ohio, Tennessee and Michigan.

    The DOE loan programs office will loan the money to Ultium Cells LLC, a joint venture of General Motors and South Korean battery manufacturer LG Energy Solutions making batteries to power electric vehicles. General Motors has pledged to go all-electric by 2035, phasing out conventional gas and diesel-powered engines.

    In a statement, US Energy Secretary Jennifer Granholm said the DOE loan would “jumpstart the domestic battery cell production needed to reduce our reliance on other countries to meet increased demand.”

    “DOE is flooring the accelerator to build the electric vehicle supply chain here at home – and that starts with domestic battery manufacturing led by American workers and the unions that support them,” Granholm said.

    Granholm is traveling to Michigan on Monday, where she’ll appear with Gov. Gretchen Whitmer and prominent lawmakers including Sens. Gary Peters and Debbie Stabenow.

    In President Joe Biden’s first year in office, he set a target to have EVs make up half of all new vehicles sales in the US by 2030.

    After the climate law Congress passed this summer, it’s yet another sign that auto companies are racing to start onshoring electric vehicle production. In order to take advantage of a federal EV tax subsidy in the Inflation Reduction Act, electric vehicles and much of their battery components be sourced, processed and assembled in North America.

    LG Energy Solutions is also set to partner with Japanese automaker Honda on a $3.5 billion joint venture battery factory in southern Ohio.

    In October, Biden introduced the American Battery Materials Initiative, which the White House has called “a new effort to mobilize the entire government and securing a reliable and sustainable supply of critical minerals used for power, electricity and electric vehicles.” At the same time, the Administration pledged $2.8 billion from the bipartisan infrastructure law passed last year to 20 manufacturing and processing companies for projects in 12 states.

    DOE estimates the three Ultium Cells facilities would create over 11,000 jobs. The Warren, Ohio, Ultium facility will be represented by the United Auto Workers, after the plant voted to unionize on Friday.

    [ad_2]

    Source link

  • Why we think we’re in a recession when the data says otherwise | CNN Business

    Why we think we’re in a recession when the data says otherwise | 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 Business
     — 

    It seems like you can’t go anywhere these days without colliding headfirst into another ominous prediction of imminent recession. CEOs, portfolio managers, politicians, news pundits, second cousins and even Cardi B are sounding the alarm: Hear ye! Hear ye! Economic downturn awaits all who dare enter 2023!

    But those predictions contradict the slew of positive economic data we’ve seen: The job market is healthy, wages are growing, Americans are spending and GDP is strong. Business is also good: Companies are largely beating revenue expectations and reporting positive earnings results.

    The Federal Reserve’s regimen of painful interest rate hikes meant to tame persistent inflation could certainly cool the economy — as could events in Eastern Europe and China — but the economy has been able to successfully endure nearly a year of hikes and war in Ukraine with barely a dent.

    It’s possible that recession chatter is just that. Chatter.

    What’s happening: No one would ever accuse investors of shying away from their emotions: Passions run high on trading floors where feelings are often as valid as facts and fear and greed can sometimes run the show. Economists, on the other hand, are a data-dependent, stoic bunch. The US economy is not Wall Street, and market downturns are not recessions — but sometimes they get jumbled together in the public eye and their borders become hazy.

    That appears to be the case: The Fed’s attempts to tamp down sky-high inflation are having an outsized impact on markets — the S&P 500 is down about 18% so far this year but there has so far been little impact on the US economy as a whole.

    This week, a number of top executives warned of an economic slowdown in 2023. CEOs from Goldman Sachs, JPMorgan, General Motors, Walmart, United and Union Pacific all said they were making plans for less-profitable times ahead. But hidden behind those “CEO PREDICTS RECESSION” headlines lies a lot of uncertainty.

    Rising interest rates and geopolitical chaos are pointing towards storm clouds on the horizon, JPMorgan CEO Jamie Dimon told CNBC on Tuesday: “When you look out forward, those things may well derail the economy and cause this mild-to-hard recession that people are worried about.” When pressed to predict what was coming, he deflected. “It could be a hurricane. We simply don’t know,” he said. What was left unsaid was that sunny days are also a possibility.

    Feedback loop: United Airlines CEO Scott Kirby also told CNBC on Tuesday that “we’re probably going to have a mild recession induced by the Fed.” He then went on to say that demand in his industry is higher than ever and United entered the fourth quarter with profit margins near all-time highs. He doesn’t see any indication of a slowdown on the horizon, either.

    So why does he think a recession is coming? “If I didn’t watch CNBC in the morning, the word ‘recession’ wouldn’t be in my vocabulary,” he said. “You just can’t see it in our data.”

    It’s almost as though Kirby predicted recession was imminent because other prominent voices predicted that recession was imminent. And it’s possible that we’re all stuck in a feedback loop that amplifies unjustified fear.

    Prophecies are often self-fulfilling. If CEOs believe recession is coming, they preemptively batten down the hatches — and that means less spending and more layoffs, which in turn can trigger an economic downturn.

    Goldman CEO David Solomon said Tuesday that the bank may soon terminate staff and exercise caution with its financial resources due to the mounting economic uncertainty. Morgan Stanley will reportedly slash its workforce by about 1,600 people, roughly 2% of the total.

    The upside: Some parts of Wall Street seem to be avoiding the recession fervor. ​​A recent study by Goldman Sachs found that smart money is betting on a soft landing. Money managers have been favoring industrial and commodity stocks that are sensitive to economic downturns. Stocks that act as a buffer during economic downturns like consumer staples and utilities have fallen out of favor at investment funds with assets totaling almost $5 trillion, Goldman strategists found.

    “Current sector tilts are consistent with positioning for a soft landing,” they wrote.

    Oil prices have tumbled to their lowest level since Christmas as worries about the health of the economy weigh on crude, overshadowing concerns about new restrictions imposed on Russian energy, reports my colleague Matt Egan.

    Brent crude, the world benchmark, lost nearly 3% on Thursday to around $77.45 a barrel.

    The oil selloff comes after the West hit Russia with new restrictions that, so far at least, do not appear to be derailing global energy markets.

    The European Union on Monday imposed a ban on seaborne oil imports from Russia, while the West placed a $60 cap on Russian oil. Both moves are designed to hurt Russia’s ability to finance its war in Ukraine, without hurting consumers by causing Moscow to slash oil production.

    “Russia oil is still on the market. As of now, it appears Russia is willing to play ball,” said Robert Yawger, vice president of oil futures at Mizuho Securities.

    The tame reaction from energy markets is a welcome gift for Americans heading on long drives this holiday season, as prices at the gas pump are expected to continue their recent plunge.

    US oil this week hit its lowest level since December 23, 2021, before recovering a little on Thursday to trade up 2% at $73.60 a barrel. That leaves oil down by 43% since briefly topping $130 a barrel in March amid fears about Russia’s invasion of Ukraine.

    The national average price for regular gasoline dipped by three cents to $3.33 a gallon on Thursday, according to AAA. Gas prices have dropped 14 cents in the past week and 47 cents in a month. The national average is a cent lower than a year ago when they averaged $3.34 a gallon.

    Britain is bracing for further disruption from strikes heading into the Christmas period, as ambulance drivers and nurses join rail operators and postal workers in the worst wave of walkouts the country has endured for at least a decade, reports my colleague Hanna Ziady.

    More than 20,000 ambulance workers, including paramedics and call handlers, are expected to strike on December 21 in a dispute over pay, according to statements from labor unions GMB, Unison and Unite.

    The strike will involve just under half of all ambulance drivers in England, Wales and Northern Ireland, although unions have said they will cover life-threatening emergencies during the walkouts. More than 10,000 ambulance workers represented by the GMB Union will strike again on December 28.

    Strikes have swept the United Kingdom this year, as workers grapple with a cost-of-living crisis and stagnating wages. Consumer prices rose by 11.1% in the year to October, a 41-year high. Once inflation is taken into account, average wages fell by the biggest drop on record earlier this year, and were still declining in the June-September period.

    According to The Times newspaper, one million UK workers are set to strike in December and January. Data from the Office for National Statistics shows Britain has already lost at least 741,000 days to strike action this year, putting it on track for its worst year of labor disputes in at least a decade.

    [ad_2]

    Source link

  • Microsoft could soon have its first union | CNN Business

    Microsoft could soon have its first union | CNN Business

    [ad_1]



    CNN
     — 

    Some 300 quality assurance workers at Microsoft-owned gaming studio ZeniMax are in the process of voting to form what would be the first union at the tech giant, organizers confirmed to CNN Business.

    The workers are organizing with the Communications Workers of America (CWA) union and have until the end of December to vote on it. Microsoft has agreed to recognize the union if a majority of the workers vote in favor of it, according to the CWA.

    “We applaud Microsoft for remaining neutral through this process and letting workers decide for themselves whether they want a union,” CWA President Christopher Shelton said in a statement to CNN Business. “Other video game and tech giants have made a conscious choice to attack, undermine, and demoralize their own employees when they join together to form a union. Microsoft has made a different choice, which other corporations would be wise to emulate for the good of their corporate culture, their workers, and their customers.”

    The organizing efforts at the gaming studio come amid a broader labor awakening that has erupted across major companies in the tech industry and beyond, including retail and warehouse workers at Amazon, Apple and Starbucks. Some companies like Amazon have so far refused to recognize workers who have voted to form a union.

    The union bid at the Microsoft subsidiary, however, stands out from some of the others because Microsoft has previously vowed to recognize the rights of workers to organize. Earlier this year, Microsoft entered into a neutrality agreement with the CWA, which is also supporting organizing efforts from workers at Activision Blizzard, the gaming giant Microsoft agreed to acquire for $68.7 billion. (The deal is pending regulatory approval.)

    Over the past year, the gaming sector has seen a larger worker-led push for improved workplace conditions after a number of controversies related to grueling work-life balance, pay inequities, poor job stability and other complaints over workplace culture at some of the country’s biggest gaming studios.

    A Microsoft spokesperson told CNN Business on Monday evening that its neutral stance toward the organizing efforts of ZeniMax employees is “an example of our labor principles in action.” The spokesperson said Microsoft remains committed “to providing employees with an opportunity to freely and fairly make choices about their workplace representation.”

    Joe Slack, an associate quality assurance tester who is part of the organizing committee for the ZeniMax union, said workers are “not starting a union to be against the company.” Instead, the effort is largely about giving workers a seat at the table as management makes decisions that will impact them.

    “We just really wanted to have a voice,” Slack told CNN Business, “and try and help with communication with management, and figuring out how we can deal with all these different things that challenge the group as a whole.” Slack said workers came together after seeing “just so much room for improvement” in their workplace.

    Slack said Microsoft has been “very accommodating” throughout the process, ever since organizers first approached the company about the union. “They understand that it’s a right and they wanted to leave it up to the workers,” Slack said.

    “There’s this perception of an adversarial relationship between the union and management, and it doesn’t have to be that way,” Slack added. “I’m happy to be part of a group that’s trying to prove that and improve everybody’s life and well-being in the process.”

    [ad_2]

    Source link

  • Former Theranos COO sentenced to nearly 13 years | CNN Business

    Former Theranos COO sentenced to nearly 13 years | CNN Business

    [ad_1]



    CNN Business
     — 

    Ramesh “Sunny” Balwani, the former chief operating officer of failed blood testing startup Theranos, was sentenced Wednesday to nearly 13 years in prison for fraud. It marks an end to the stunning downfall of a high-flying Silicon Valley company that resulted in the rare convictions of two tech executives.

    “There is an unfortunate saying in Silicon Valley: ‘Fake it ‘til you make it.’ Elizabeth Holmes and Sunny Balwani stretched this idea to a place much farther than the law allows and in so doing put vast amounts of investor dollars at risk,” said Stephanie Hinds, US Attorney for the Northern District of California, in a statement. “Significantly, today the court also made clear that Sunny Balwani’s decision to deceive doctors and patients also put the health of patients at risk. Ms. Holmes and Mr. Balwani now will be justly punished for their illegal conduct.”

    Hinds added, “Let this story be a cautionary tale for entrepreneurs in this district: Those who use lies to cover up the shortfalls of their promised accomplishments risk substantial jail time.”

    The sentencing comes weeks after Elizabeth Holmes, the founder of Theranos and Balwani’s ex-girlfriend, was sentenced to more than 11 years in prison.

    Theranos raised $945 million from an A-list cohort of investors with its promise to test for a wide range of conditions using just a few drops of blood. At its peak, the company was valued at $9 billion.

    The company began to unravel after a Wall Street Journal investigation in 2015 reported that Theranos had only ever performed roughly a dozen of the hundreds of tests it offered using its proprietary technology, and with questionable accuracy. It also came to light that Theranos was relying on third-party manufactured devices from traditional blood testing companies rather than its own technology. Theranos ultimately dissolved in September 2018.

    Holmes and Balwani were first indicted together four years ago on the same 12 criminal charges pertaining to defrauding investors and patients about Theranos’ capabilities and business dealings in order to get money. Their trials were severed after Holmes indicated she intended to accuse Balwani of sexually, emotionally and psychologically abusing her throughout their decade-long relationship, which coincided with her time running the company. (Balwani’s attorneys have denied her claims.)

    In July, Balwani was found guilty on all 12 charges he faced, which included ten counts of federal wire fraud and two counts of conspiracy to commit wire fraud. Holmes was found guilty in January on four charges relating to defrauding investors, and found not guilty on three additional charges concerning defrauding patients and one charge of conspiracy to defraud patients.

    Like Holmes, Balwani faced up to 20 years in prison as well as a fine of $250,000 plus restitution for each count.

    In a recent court filing, prosecutors noted that Balwani was convicted not only of defrauding investors but also defrauding patients. They recommended a 15-year prison sentence for him, as well as an order for Balwani to pay $804 million in restitution. In a separate filing, attorneys for Balwani requested a sentence of probation, noting he had no criminal history.

    Before joining Theranos, Balwani had a career as a software executive. Balwani, nearly 20 years older than Holmes, first met her in 2002 before she dropped out of Stanford. He served as an informal adviser to Holmes in Theranos’ earliest days and the two became romantically involved. Balwani guaranteed a “multimillion-dollar loan” to the startup in 2009, court filings show, and took on a formal role as president and chief operating officer. Holmes and Balwani largely kept their romantic relationship hidden while working together.

    During her trial, Holmes claimed Balwani tried to control nearly every aspect of her life — including disciplining her eating, her voice and image, and isolating her from others. She testified that while he didn’t control her interactions with investors, business partners and others, “he impacted everything about who I was, and I don’t fully understand that.”

    Holmes is expected to appeal her conviction but was ordered to turn herself into custody on April 27, 2023.

    [ad_2]

    Source link

  • This former tech worker is helping change laws for people who get laid off | CNN Business

    This former tech worker is helping change laws for people who get laid off | CNN Business

    [ad_1]



    CNN
     — 

    Ifeoma Ozoma’s path as an advocate for tech workers started with a series of tweets one morning in June 2020.

    It was a few months after she was pushed out from her job at Pinterest, the image-sharing and social media platform. Across the United States, protests and outrage filled the streets after a White police officer in Minneapolis knelt on the neck of George Floyd for more than nine minutes, ultimately killing him.

    As companies scrambled to express their solidarity with the Black Lives Matter movement, her former employer released a statement.

    “We heard directly from our Black employees about the pain and fear they feel every day living in America,” Pinterest CEO Ben Silbermann said in the statement. “This is not just a moment in time. With everything we do, we will make it clear that our Black employees matter, Black [Pinterest users] and creators matter, and Black Lives Matter.”

    Ozoma, the daughter of Nigerian immigrants, said she wasn’t having it. She fired back with a series of tweets accusing the lifestyle company of racism, pay inequity and retaliation.

    “I shouldn’t have to share this story in the year of our Lord, 2020 — but here we are,” she tweeted. “I’m an alum of Yale, Google, FB, … etc and recently decided to leave Pinterest, which just declared ‘solidarity with BLM.’ What a joke.”

    Ozoma said her tweets broke a nondisclosure agreement she’d signed when she left the company, thrusting her into the spotlight as the latest person to speak up about alleged mistreatment within the male-dominated tech field. While she’d already left her job by then, she risked the reputation she’d built from years of work within the industry, she said.

    But instead of shrinking from the challenge, she leaned into it.

    “My entire career has been in tech and so I was very aware of the costs of speaking up, but I wasn’t afraid of it. I knew that it was what I had to do,” she said. “Fear is something I haven’t really felt since my mom died from a rare cancer when I was in college. The worst thing that could have happened already did … Pinterest could bankrupt me and make it impossible for me to be hired by any other tech companies, but they couldn’t break me. “

    Ozoma told CNN her conflict with Pinterest started after she realized she was getting paid less than half what a White male colleague earned for doing the exact same work.

    She said she raised her concerns with her employer and gave the company time to address the issues. But in March 2020, she was let go from her job at Pinterest.

    “The purpose wasn’t just, ‘let me vent,’” she said of her flurry of tweets in June 2020. “The purpose was, people need to understand that this is what’s happening. And if it happened to me with the public profile that I had within the company and outside of the company, then it can happen to anyone else.”

    Two months after Ozoma and another woman of color, Aerica Shimizu Banks, publicly accused Pinterest of racial discrimination, former chief operating officer Francoise Brougher sued the company over gender discrimination and retaliation. Pinterest later agreed to settle the lawsuit for $22.5 million, but did not admit to liability as part of the settlement.

    It later said it conducted a thorough investigation on the issues raised and concluded Ozoma and Banks were “treated fairly.”

    “We want each and every one of our employees at Pinterest to feel welcomed, valued, and respected,” a Pinterest spokesperson said in June. “We’re committed to advancing our work in inclusion and diversity by taking action at our company and on our platform. In areas where we, as a company, fall short, we must and will do better.”

    Pinterest says it has taken steps to monitor employee salaries to ensure equal pay for comparable work.

    In a separate statement to CNN late last month, Pinterest said it’s launched various diversity and inclusion measures, including pay transparency tools for employees. The company said it’s also taken steps to monitor employee salaries to ensure equal pay for comparable work.

    “We have increased the percentage of women in leadership, added board members who are committed to diversity, and we continue to set goals for increasing diversity at the company,” a Pinterest spokesperson told CNN in an email. “We … are committed to ensuring that every employee feels safe, championed, and empowered to raise any concerns about their work experience.”

    After Ozoma began tweeting about her experience at Pinterest, direct messages poured in from people facing similar frustrations at other companies, she said. She knew she had to do something about it.

    She emerged as a passionate advocate for tech workers by seeking legal protections for whistleblowers.

    Pinterest is based in San Francisco. At the time, California’s law offered some protection to employees who broke non-disclosure agreements to speak out about workplace harassment or discrimination based on sex — but not about racial discrimination, Ozoma said.

    Ozoma got busy. She began educating whistleblowers on their options, urged tech companies to rethink their policies on nondisclosure agreements and reached out to lawmakers to seek new legislation that would protect employees speaking out on all forms of discrimination.

    Ozoma worked with California state senator Connie Leyva, right, on a bill that prevents nondisclosure agreements from being used against people speaking out about workplace discrimination. California Gov. Gavin Newsom signed it into law last October.

    In California, she worked with state senator Connie Leyva on a law that prevents nondisclosure agreements from being implemented against people speaking out on any workplace discrimination, including race.

    In October last year, California Gov. Gavin Newsom signed the bill — known as the Silenced No More Act — into law.

    “California workers should absolutely be able to speak out — if they so wish — when they are a victim of any type of harassment or discrimination in the workplace,” Senator Leyva said at the time. “It is unconscionable that an employer would ever want or seek to silence the voices of survivors that have been subjected to racist, sexist, homophobic or other attacks at work.”

    Ozoma’s advocacy work has given whistleblowers a safe space to go for information.

    Around the same time Newson signed the measure into law, she launched a Tech Worker Handbook online to provide free resources for employees seeking information on how to speak out on workplace discrimination and harassment.

    “So many people reached out when I told my story, and most of them were tech workers or workers within the tech industry,” she said.

    She said she’s recruited dozens of experts and tech industry professionals to contribute to the site, saying the goal is not to encourage employees to be whistleblowers, but to provide them with information about options if they choose that path.

    After leaving Pinterest, Ozoma moved to a farm near Santa Fe, New Mexico, where she runs a tech policy consulting company and raises a flock of chickens.

    “I cannot tell someone who is supporting their kids and their partner on their health insurance … go leave your job so that your kids don’t have health insurance, so that you can feel good about speaking up,” she said.

    “It’s such an individual decision. If I had kids at the time who are on my health insurance, I probably wouldn’t have said anything.”

    Since the site launched, Ozoma said she has received hundreds of inquiries from employees seeking more details on how to disclose and fight discrimination at work. The 30-year-old mentors activists and other people fighting all over the world against workplace discrimination.

    Ozoma now runs a tech policy consulting company, Earthseed, and is the director of tech accountability at the new Center on Race and Digital Justice at the University of California, Los Angeles. This year, Time Magazine named her one of its TIME100 Next, a group of emerging leaders who are shaping the future.

    Her new role as an advocate is happening hundreds of miles away from the tech world she left behind.

    After leaving Pinterest, Ozoma moved to a farm near Santa Fe, New Mexico, where she grows her own vegetables and raises a flock of chickens nicknamed the Golden Girls.

    She said she has no plans to go back to Silicon Valley, but will keep fighting for employee rights.

    “I’m just working now from a different position on issues that really impact the industry in a way that I feel is additive,” she said.

    “I don’t think that there’s anything more fulfilling than being part of the circle of life,” she said, using a metaphor that mirrors her current life on a farm, “whether that’s watching a seed or planting a seed in the ground and watching it grow and create more seeds.”

    [ad_2]

    Source link

  • UK government could mitigate strike action with military to help keep public services running | CNN Business

    UK government could mitigate strike action with military to help keep public services running | CNN Business

    [ad_1]


    London
    CNN
     — 

    The British government is looking into bringing in the military to mitigate industrial action and keep public services running, the chairman of the governing Conservative Party said Sunday, after a wave of strikes that were sparked by a cost-of-living crisis and an economy sliding into recession.

    The action includes border control and state-run healthcare services, if key workers including nurses and ambulance drivers go on strike.

    “Our message to the unions is to say, this is not a time to strike, this is time to try and negotiate. But in the absence of that, it’s important for the government, it’s the right and responsible thing to do to have contingency plans in place,” Conservative Party chairman Nadhim Zahawi told Sky News.

    “We’re looking at the military, we’re looking at a specialist response force […] to be able to deal with in the unfortunate circumstance if you do have a strike of border force,” Zahawi added.

    “Of course, in things like driving ambulances, other parts of the public sector, we’ve got to try and minimize disruption,” said Zahawi, in response to a question about strikes affecting the UK’s National Health Service.

    Strikes have swept the UK this year, as workers grapple with a worsening cost-of-living crisis and an economy that is sliding into a recession. CNN Business previously reported that wages have stagnated and failed to keep pace with inflation, now at a 41-year high, setting the stage for clashes between employers and employees.

    Those clashes have already caused widespread disruption, including to train travel, and are now spreading to even more sectors, such as education, healthcare and security.

    More than 70,000 university workers went on strike over pay, working conditions and pensions on Thursday, November 24, and Friday, November 25 at 150 universities across the United Kingdom.

    The strike was the biggest in the history of British higher education, affecting over 2.5 million students, according to the University and College Union, which organized the strike.

    According to the Office for National Statistics, 356,000 days were lost to strike action in August, not far off the previous high recorded in July 2014, when 386,000 days were lost. That number dipped to 205,000 in September.

    The disruption has continued into the winter months, with RMT, Britain’s largest transport union, announcing in November four 48-hour strikes in December and January.

    The Communication Workers Union (CWU), which represents striking postal workers, announced additional walkouts on December 9, 11, 14, 15, 23 and 24, which could jeopardize Christmas deliveries.

    [ad_2]

    Source link

  • Amazon CEO explains thinking behind layoffs as unionized warehouse workers protest outside | CNN Business

    Amazon CEO explains thinking behind layoffs as unionized warehouse workers protest outside | CNN Business

    [ad_1]



    CNN Business
     — 

    Amazon CEO Andy Jassy on Wednesday said an “uncertain” economy pushed the e-commerce giant to move forward with rare and wide-ranging layoffs after having gone on a significant hiring spree for much of the pandemic.

    “We had the lens of a very uncertain economic environment, as well as our having hired very aggressively over the last several years,” Jassy said in an interview at the New York Times DealBook summit on Wednesday. “We just felt like we needed to streamline our costs.”

    The remarks came as part of Jassy’s first interview since Amazon

    (AMZN)
    confirmed earlier this month it had begun laying off corporate workers, with plans for layoffs to continue into early next year. The company is reportedly planning to cut up to 10,000 employees, though it has not confirmed a figure.

    Amazon, more than most tech companies, experienced a staggering pandemic boom as more customers shifted their spending online during the health crisis. Like other tech companies, it has since changed course and begun cutting employees as it confronts a shift in demand as well as rising inflation and recession fears.

    “A lot has happened in the last few years that I’m not sure people anticipated,” Jassy said. “You just look in 2020, our retail business grew 39% year-over-year, at a $245 billion annual run rate, which is unprecedented, and it forced us to make decisions in that time to spend a lot more money and to go much faster in building infrastructure than we ever imagined we would.”

    “We built a physical fulfillment center footprint over 25 years that we doubled in 24 months,” Jassy said.

    Even so, Jassy said he thinks the team “made the right decision” regarding its infrastructure build out. Regarding the hiring spree, Jassy said he now looks at is as a “lesson for everyone.”

    “I don’t necessarily think it was the wrong thing to have been doubling down, because we were growing so well and we had so many ideas that we thought were good for customers and good for the business, but I think it’s a good lesson, I think, for everybody,” Jassy said. “When you’re hiring, even when things are going really well, that it’s good to think about if there’s some kind of sudden change, even one that you just have a little bit of a hard time imagining. Would you like the incremental headcount that you’re adding at that time, or do you want to be a little bit more conservative?”

    As Jassy spoke, Amazon warehouse workers who helped organize the company’s first-ever US labor union at a Staten Island facility gathered in the rain outside of the venue to protest their chief executive’s appearance in New York.

    Despite the landmark union victory in April, Amazon has so far refused to formally recognize the grassroots worker group known as the Amazon Labor Union, or come to the bargaining table. The company has aggressively pushed back against the workers’ victory through the National Labor Relations Board (NLRB).

    While the NLRB battle indicates the labor union is on the cusp of being certified, Jassy suggested Amazon’s legal battle with the worker group isn’t done yet. He said there “were a lot of irregularities in that vote,” which is why the company filed objections with the NLRB. (Amazon’s objections were previously rejected by an NLRB hearing officer.)

    Jassy also emphasized that the last two Amazon union elections held resulted in workers voting not to unionize, and that Amazon prefers to have a direct relationship with fulfillment center workers rather than going through unions.

    Labor activist Chris Smalls joins members of the Amazon labor union and others for a protest outside of the New York Times DealBook Summit as Amazon's CEO, Andy Jassy, will be appearing on November 30, 2022 in New York City.

    “In my own opinion on where we are with that legal process is that we’re far from over with it,” Jassy said. “I think that it’s going to work its way through the NLRB, it’s probably unlikely the NLRB is going to rule against itself, and that has a real chance to end up in federal courts.”

    In an interview with CNN Business ahead of Jassy’s remarks, Amazon Labor Union President Chris Smalls slammed that Jassy “even had the audacity to feel comfortable to come to New York City knowing that we haven’t negotiated anything yet.”

    “We definitely want to take this opportunity to let him know that the workers are waiting and we are ready to negotiate our first contract,” he added of the demonstration, which he called a “welcoming party” for Jassy.

    Smalls said he’s been contacted by a few laid-off Amazon employees in corporate roles, who have since grown interested in the protections of unions. “I tell them — you may have good salary, you may have good perks, you may got good stocks and benefits, obviously better than warehouse workers, but at the end of the day, you’re still an at-will employee,” Smalls said.

    “I explained to them, the one building that can’t be touched right now by mass layoffs is JFK8 Staten Island,” he said. “I encourage them to do what they have to do, if that means form a union, so be it, we support it.”

    [ad_2]

    Source link

  • A hard look at New York’s controversial new approach to the homeless | CNN Politics

    A hard look at New York’s controversial new approach to the homeless | CNN Politics

    [ad_1]

    A version of this story appeared in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    New York City Mayor Eric Adams gave the city’s first responders, including its police force, a controversial new task this week – to enforce a state law that allows them to involuntarily commit people experiencing a mental health crisis.

    From CNN’s report by Mark Morales:

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

    The police department is still formulating a plan and Adams, a former cop, said officers will get additional training and real-time support from mental health professionals.

    The move follows a raft of violence in New York City and also increasingly visible homeless encampments in New York and cities around the country.

    Adams framed the policy as a way to help people who need it.

    “It is not acceptable for us to see someone who clearly needs help and walk past,” he said.

    Advocates for the homeless oppose this. “The city really needs to approach this more from a health and housing lens, rather than focusing on involuntary removals and policing,” Jacquelyn Simone from the Coalition for the Homeless told CNN’s Brynn Gingras for her report that aired this week on “AC360°.”

    Mental health professionals are questioning it. “We are defaulting to an extreme that takes away basic human rights,” Matt Kudish, CEO of the New York chapter of the National Alliance on Mental Illness, said in a statement after Adams’ announcement.

    Kudish said New York should do more to help people before they need intervention: “The City has the power to provide onsite treatment, as well as treatment in homeless shelters or supported housing, but has chosen not to.”

    Police are worried it puts them in a precarious position. “As soon as they want to resist, now where does the liability form – on the uniformed officer,” retired NYPD detective Andrew Bershad told Gingras.

    I talked to Ryan McBain, a policy researcher at the RAND Corporation who studies how government policies can reach vulnerable populations, including those experiencing both mental illness and housing insecurity.

    McBain argued Adams’ move is “well-intentioned but misguided,” first of all because police interactions with people experiencing serious mental health issues is “fuel for escalation.”

    “It’s something like 1 in 4 people who are shot by a police officer are people with significant mental health issues,” McBain said. When I looked to confirm that 25% figure, I found this in a 2015 Washington Post investigation.

    “If you stop and think about it, it makes sense, right? People who are disoriented or having atypical thoughts, they’re not in a position oftentimes to comply collaboratively with a police officer,” he said. “And given the fact that police officers are carrying weapons, you have sort of a recipe for bad outcomes.”

    There’s evidence, he said, that actually deploying trained mental health professionals alongside police officers would be more effective. In New York, first responders will get additional training and have access to a hotline with mental health professionals.

    Another issue is more systemic and has to do with how the US deals with chronic and serious mental illness, from a system of large institutional asylums that were shuttered in the ’60s and ‘70s to a flawed system focused on private insurance and community-based mental health centers.

    Currently, there aren’t enough beds for psychiatric patients.

    “We don’t need giant asylums where the conditions are inappropriate, but we do need larger facilities with more beds that can provide the type of care that the patients really need when they have more serious mental health issues,” McBain said.

    More permanent supportive housing is required for people who experience both mental health issues and homelessness. But that kind of solution – the public providing housing alternatives for people who cannot provide for themselves – can be expensive and politically difficult.

    RELATED: How one Minnesota county has been rapidly housing the homeless since the pandemic

    It’s a sentiment echoed by Dennis Culhane, a professor of social policy at the University of Pennsylvania, who appeared on “AC360°” on Thursday. “That is the fundamental problem here,” Culhane said. “You cannot actively and effectively treat people without having them in a place where they can take care of themselves.”

    McBain said that in the US health system, which is geared around insurance paying for services, mental health is not treated on par with physical health.

    “In the best of all possible worlds, you’d have a continuum of care for addressing people’s mental health needs,” he said.

    “And that continuum would begin with high-quality outpatient services that private insurers pay for at parity with physical health conditions. … I think until you see the system try to address these issues in a holistic way, these issues are going to continue to persist,” he said, arguing, “Mayor Adams is proposing putting a Band-Aid on something for which you really need sutures.”

    [ad_2]

    Source link

  • South Dakota governor bans state employees from using TikTok on government devices | CNN Business

    South Dakota governor bans state employees from using TikTok on government devices | CNN Business

    [ad_1]



    CNN Business
     — 

    South Dakota’s governor signed an executive order on Tuesday banning state agencies, employees and contractors from accessing TikTok on government devices, citing “the growing national security threat” posed by the Chinese-owned social media platform.

    “South Dakota will have no part in the intelligence gathering operations of nations who hate us,” Gov. Kristi Noem said in a press release. “The Chinese Communist Party uses information that it gathers on TikTok to manipulate the American people, and they gather data off the devices that access the platform.”

    The order goes into effect immediately.

    It’s unclear if many, or any, state employees were actively using TikTok on state-owned devices. But with the move, Noem is the latest lawmaker to urge for tougher action to be taken against the popular short-form video app, potentially scoring some political points in the process.

    There has been renewed criticism of TikTok this year, stemming from a Buzzfeed News report in June that said some US user data has been repeatedly accessed from China. The reporting cited leaked audio recordings of dozens of internal TikTok meetings, including one where a TikTok employee allegedly said, “Everything is seen in China.”

    In a response to the report, TikTok previously said it “has consistently maintained that our engineers in locations outside of the US, including China, can be granted access to US user data on an as-needed basis under those strict controls.” A TikTok executive testified before a Senate panel last year that it doesn’t share information with the Chinese government and that a US-based security team decides who can access US user data from China.

    “Because of our serious duty to protect the private data of South Dakota citizens, we must take this action immediately,” Noem said. “I hope other states will follow South Dakota’s lead, and Congress should take broader action, as well.”

    – CNN’s Catherine Thorbecke contributed to this report.

    [ad_2]

    Source link

  • Mexico will increase minimum wage by 20% in 2023 | CNN

    Mexico will increase minimum wage by 20% in 2023 | CNN

    [ad_1]



    CNN
     — 

    Mexico’s minimum wage will increase by 20% from 2023, the government announced on Thursday after it reached a deal with the labor and business sector.

    The rise will begin on January 1, where the daily minimum wage will go from 172 Mexican pesos ($9) to 207 Mexican pesos ($10.82), Labor Minister Luisa Maria Alcalde announced during government press conference in Mexico City.

    The agreement was reached unanimously between the government, the labor sector and the business sector, Alcalde said.

    [ad_2]

    Source link

  • Salesforce Co-CEO Bret Taylor steps down, leaving Marc Benioff alone at the top | CNN Business

    Salesforce Co-CEO Bret Taylor steps down, leaving Marc Benioff alone at the top | CNN Business

    [ad_1]


    New York
    CNN Business
     — 

    Enterprise tech giant Salesforce said Wednesday that its co-CEO and Vice Chair Bret Taylor will step down from his roles. Salesforce co-founder Marc Benioff, who had been co-CEO alongside Taylor, will continue running the company and serving as board chair, the company said in a news release.

    Taylor had worked at Salesforce

    (CRM)
    for six years, most recently as president and COO before being elevated to co-CEO last November. He will officially exit his position on January 31, 2023. Benioff, in a statement, called Taylor’s decision to step down “bittersweet.”

    “After a lot of reflection, I’ve decided to return to my entrepreneurial roots,” Taylor said in a statement. “Salesforce has never been more relevant to customers, and with its best-in-class management team and the company executing on all cylinders, now is the right time for me to step away.”

    Prior to Salesforce, Taylor founded and led collaboration platform Quip, which Salesforce acquired for $750 million in 2016. Taylor also worked as chief technology officer at Facebook during the company’s IPO.

    Taylor’s move comes at a rocky time for Salesforce, whose shares have fallen around 40% since the start of this year amid the economic downturn. The announcement coincided with Salesforce’s third quarter earnings report, in which the company said it expected fourth quarter revenue at the low-end of analysts’ expectations.

    Salesforce’s stock fell more than 6% in after-hours trading following the earnings and leadership change announcements.

    Taylor also had a busy year outside Salesforce. As the former chair of Twitter’s board of directors, he was in charge of leading the company through Elon Musk’s tumultuous takeover deal and litigation. Musk officially closed his $44-billion deal to buy the company last month and quickly dissolved the board of directors.

    [ad_2]

    Source link

  • Big moments for women at the men’s World Cup | CNN Politics

    Big moments for women at the men’s World Cup | CNN Politics

    [ad_1]

    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    An unexpected result of the US Men’s National Team reaching the knockout round of 16 at the FIFA World Cup in Qatar is that the US Women’s National Team will get its largest collective payday, equally splitting $13 million in winnings with the men.

    It’s a big deal for American women who have long sought pay equity, and it amplifies the extreme sliding scale of women’s rights around the globe.

    Consider that this payday for US women was won when the US men’s team defeated Iran, a country where authorities are brutally tamping down protests by women who want basic human rights.

    The US Women’s National Team excels at soccer and fought hard for years for equal pay.

    The earnings they’ll split with the American men could grow if the men continue to advance in the World Cup.

    It’s the result of an unprecedented equal pay agreement finalized earlier this year. Read more about the prize money.

    FIFA pays bigger awards to the men’s tournament, which draws in more revenue to the international soccer governing body, than to the women’s. The agreement between the US men and women is unique.

    “To everyone it should indicate how big the disparity is that FIFA has made between their value of women’s soccer and men’s soccer, and this is the only way that equity could be achieved, if all parties agreed – and they did,” said Briana Scurry, a former US goalkeeper, appearing on CNN Wednesday.

    Not only did the US Men’s National Team advance to earn the payday, but they also agreed to this unprecedented pot-splitting with the top American women earlier this year.

    “These are Title IX males,” said Christine Brennan, the sports columnist and CNN analyst, referring to the US men’s team during an appearance on “CNN Tonight” on Tuesday. She was referring to the landmark 1972 law that prohibits discrimination on the basis of sex in education programs or activities receiving federal funds. It has revolutionized women’s sports in the US and, Brennan argued, influenced male athletes too.

    “They weren’t raised like their dads or their grandfathers. And they have a much different outlook, not only about women’s equality in terms of pay, but these are the same men who’ve been talking about standing with the Iranian protesters,” Brennan said.

    She praised the US Soccer Federation and the Men’s National Team, who have distinguished themselves not only by advancing, but “even more so in terms of our culture and the stands they have taken.”

    Iranian women, as you’ll know from following coverage of protests in that country and at the World Cup, are fighting for basic rights.

    CNN reported on celebrations in Iran at the national team’s loss to the US. From that report:

    “I am happy, this is the government losing to the people,” one witness to celebrations in a city in the Kurdish region, who CNN is not naming for security concerns, told CNN on Wednesday.

    The Norway-based Iranian rights group Hengaw posted several videos of similar scenes. “People in Paveh are celebrating Iran’s national team lose over America in World Cup in Qatar, they are chanting ‘Down with Jash (traitors),” Hengaw said in a post.

    Meanwhile, back in Doha, Qatar, another landmark moment for women in the world’s most popular sport will come Thursday, when the first all-women refereeing team in men’s World Cup history debuts in a pivotal match between Germany and Costa Rica.

    Stéphanie Frappart, the French lead official, has already overseen matches at the top levels of European club soccer, so, “I know how to deal with it,” she said in a statement released by FIFA. This match, with a potential audience of billions, will show a woman in charge.

    If the US men and women are on the road to some sort of parity – the men still make much, much more from their clubs – there are some women in the Middle East who are just gaining access to the pitch.

    Saudi Arabia’s men’s team put in a solid show at this World Cup with their defeat of storied Argentina in the opening round. But the Saudis failed to advance past the group stage after losing to Mexico Wednesday.

    Meanwhile, women in Saudi Arabia were only allowed inside soccer stadiums in 2018, much less play.

    As Saudi Arabia weighs a joint bid to co-host the 2030 men’s World Cup, the kingdom is also in the beginning stages of building a national women’s team. It’ll surely be many years before the Saudi women can be competitive on the world stage, but simply being able to play is certainly progress.

    CNN’s Becky Anderson, who is reporting from Doha during this World Cup, talked to the German women’s team legend Monika Staab, who is coaching the nascent Saudi women’s team. She said the kingdom is developing its women through three development academies and wants to host an international tournament in 2026.

    Staab said the all-women referee team in Thursday’s match in Qatar will be a powerful symbol for Muslim women watching.

    “The women can do like the men,” Staab said on CNN International Wednesday night. “I think that is a big sign for the whole world. We in Saudi Arabia, we play football. That has a great impact on every Muslim girl who wants to play,” Staab said.

    In the US, women’s soccer has at times been a bigger draw than the men’s game.

    About 14 million American viewers watched the women’s World Cup final, featuring the winning US team, in 2019. That was more than watched the men’s World Cup final between France and Croatia in 2018, but far below the 20 million who watched the US take on England in the group stage last Saturday across Fox and Telemundo.

    [ad_2]

    Source link

  • India on track for record $100 billion in remittances, says World Bank | CNN Business

    India on track for record $100 billion in remittances, says World Bank | CNN Business

    [ad_1]


    New Delhi
    CNN Business
     — 

    The extensive Indian diaspora will help the South Asian country reach a special milestone this year.

    Asia’s third largest economy is on track to receive more than $100 billion in yearly remittances in 2022, according to a World Bank report published Wednesday. This will be the first time a country will reach that milestone figure, it said.

    Remittances, or money transfers from migrant workers to families back home, are an important source of income for households in poorer countries. They not only reduce poverty in developing nations but have also been associated with higher school enrollment rates for children in disadvantaged households.

    Over the last few years, the World Bank report said, Indians have moved to high-skilled jobs in high-income countries such as the United States, United Kingdom, and Singapore — from low-skilled employment in Gulf countries such as Saudi Arabia, Kuwait and Qatar — and sending more money back home as a result.

    India had received $89.4 billion in remittances in 2021, according to the World Bank, making it the top recipient globally last year.

    “Remittance flows to India were enhanced by the wage hikes and a strong labor market in the United States,” and other rich countries, the bank said.

    Despite being poised to reach the record figure, India’s remittance flows are expected to account for only 3% of its GDP in 2022, it said.

    Apart from India, the other top recipient countries for remittances in 2022 are expected to be Mexico, China, and the Philippines. The next year may be more challenging for Indian diaspora, however.

    2023 will “stand as a test for the resilience of remittances from white-collar South Asian migrants in high-income countries,” because of rising inflation in the United States and slowing global growth, according to the report.

    Globally, remittances to low and middle income nations are expected to grow an estimated 5% to $626 billion this year, it added.

    [ad_2]

    Source link

  • DoorDash to lay off 1,250 corporate employees | CNN Business

    DoorDash to lay off 1,250 corporate employees | CNN Business

    [ad_1]



    CNN
     — 

    DoorDash on Wednesday said it will lay off about 1,250 corporate employees after growing its team too quickly during the pandemic, making it the latest tech company to cut staff in recent weeks.

    The cuts represent about 6% of DoorDash’s staff, according to a company spokesperson.

    DoorDash CEO Tony Xu shared the layoff news in a memo to staff early Wednesday, calling it “the most difficult change to DoorDash that I’ve had to announce in our almost 10-year history.”

    “If you are among those impacted, I am truly sorry and I apologize to have some of you wake up to this news as opposed to reading it during more normal hours,” Xu added.

    Like other tech companies, DoorDash experienced a pandemic boom as more consumers embraced online deliveries and shied away from stores and restaurants amid the health crisis. Xu said that DoorDash “sped up our hiring to catch up with our growth and started many new businesses in response to feedback from our audiences.”

    While “most of our investments are paying off,” Xu wrote, “we were not as rigorous as we should have been in managing our team growth.” He added: “That’s on me. As a result, operating expenses grew quickly.”

    A wave of layoffs have spread throughout the tech industry recently as companies react to rising inflation, looming recession fears, and a shift in pandemic demand. Meta, Twitter, and Amazon have all announced significant job cuts, with the heads of some of these companies admitting to misreading pandemic demand.

    In his memo, Xu nodded to the shifting economic climate. “We too are not immune to the external challenges and growth has tapered vs our pandemic growth rates,” he wrote.

    Shares of DoorDash are down more than 60% so far this year.

    [ad_2]

    Source link