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Tag: labor

  • UAW sets deadline for further possible strikes

    UAW sets deadline for further possible strikes

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    United Auto Workers President Shawn Fain said Monday that if the union has not made substantial progress toward reaching an agreement with the Big Three automakers by Friday at noon Eastern time, it is prepared to call for additional strikes. About 13,000 auto workers from three UAW plants in three different states are currently on strike at Ford Motor
    F,
    -2.14%
    ,
    General Motors
    GM,
    -1.80%

    and Stellantis
    STLA,
    -1.61%
    ,
    and the union has said it is prepared to call on more workers to walk off their jobs if necessary. “We’ve been available 24/7 to bargain a deal that recognizes our members’ sacrifices and contributions to these record profits,” Fain said in a livestreamed update. “Still the Big Three failed to get down to business.” A GM spokesman said “we’re continuing to bargain in good faith with the union to reach an agreement as quickly as possible for the benefit of our team members, customers, suppliers and communities across the U.S.” An earlier Stellantis statement said the company resumed negotiations with the union Monday, which the union confirmed. “We continue to listen to the UAW to identify where we can work together and will continue to bargain in good faith until an agreement is reached,” the statement said. Ford did not immediately respond to a request for comment.

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  • Block’s stock has been a laggard lately. Will management shakeup provide a needed jolt?

    Block’s stock has been a laggard lately. Will management shakeup provide a needed jolt?

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    Block Inc.’s stock has been a sizable laggard this year, and now it’s losing the leader of a critical business — albeit one that hasn’t necessarily lived up to investor expectations lately.

    Alyssa Henry, the head of Block’s
    SQ,
    -2.99%

    Square merchant business, is stepping down after a long tenure with the company, and Jack Dorsey will assume her role while continuing to lead Block on the whole, the company announced in a Monday filing.

    The announcement comes as Block shares have declined 18% so far this year, while the S&P 500
    SPX
    has risen 16%. Other payment-technology stocks, including Shift4 Payments Inc.,
    FOUR,
    -0.54%

    Toast Inc.
    TOST,
    +1.34%

    and even PayPal Holdings Inc.
    PYPL,
    -1.98%

    have logged better year-to-date performances.

    Block’s stock closed at its lowest level since April 7, 2020 on Monday, according to Dow Jones Market Data. It was down about 2% in after-hours trading.

    The stock is also down 82% from its all-time closing high achieved Aug. 5, 2021.

    See also: PayPal’s ‘fresh start’ isn’t enough to help its stock, analyst cautions

    The performance of the Square merchant business, which includes payment processing and other tools for sellers, has been a sore point for investors recently. Wolfe Research analyst Darrin Peller notes that Block’s second-quarter U.S. gross payment volume (GPV) was up 10% from a year earlier, a four-point spread above Visa Inc.’s
    V,
    +1.49%

    domestic growth. Historically, the spread has been in double digits, he said.

    Additionally, while the 12% overall growth in Square’s GPV “continues to imply that Square is a market-share gainer, we note that this growth spread relative to the industry has trended lower and also suggests slightly softer growth trends versus competitors like Clover,” which is part of Fiserv Inc.
    FI,
    +0.12%
    ,
    whose shares are up 20% on the year.

    “While some of Square’s success over the years should be attributed to Alyssa’s execution, the company’s more recent performance remains a concern for investors (and we suspect for management, internally),” Peller wrote.

    He pointed to “mixed” feedback from investors thus far.

    “Bulls argue that this change is positive, indicating that management is taking change seriously,” Peller said. “Further, it’s worth noting that Jack has been more receptive to cost management and other adjustments. Meanwhile, bears are citing that Alyssa was the ‘face’ of Seller and was more receptive to changes in Square’s business model compared to Jack (particularly around outsourced distribution).”

    Block, for its part, said in its filing that Henry “provided significant contributions” to the company during a tenure that spanned more than nine years.

    UBS downgraded Block shares earlier this month, in part due to concerns about the Square business. Analyst Rayna Kumar said she was concerned about a potential slowdown in gross-profit growth owing to a moderation in consumer spending.

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  • Where the Strike Stands. What Auto Makers and UAW Say.

    Where the Strike Stands. What Auto Makers and UAW Say.

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    UAW workers went on strike in the early morning hours on Friday at the GM Wentzville Assembly plant in Wentzville, Mo.


    Photograph by Nick Schnelle

    The United Auto Workers’ strike against the three auto makers with roots in Detroit starts the week with pl…

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  • UAW strike sets the stage for the 4-day work week — and a win could take it mainstream

    UAW strike sets the stage for the 4-day work week — and a win could take it mainstream

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    Striking United Auto Workers want better wages, improved job security, retiree pay increases, and a 32-hour work week that could turbocharge broader acceptance of shorter work weeks.

    Right now, nearly 13,000 UAW workers have walked off the job at Ford Motor Co.
    F,
    -0.08%
    ,
    General Motors Co.
    GM,
    +0.86%

    and Jeep and Chrysler parent Stellantis
    STLA,
    +2.18%
    ,
    still considered the influential Big Three for car makers.

    If the union gets a win from on its 32-hour work week demand, that could be a big deal for momentum behind the broader four-day work week movement, experts say.

    Four days of work is “still in the early-adoption phase,” said Alex Soojung-Kim Pang, director at Four Day Week Global, where he advises companies considering how to implement a curtailed traditional work week.

    A UAW win on the 32-hour demand “would help move the four-day week from being something you do if you have a bold leader and you want to stand out in your industry, to a mainstream aspiration for every worker and business owner,” said Soojung-Kim Pang.

    “A lot more people can look at the four-day week and say if they are doing this in an auto factory, I absolutely can do it here in my small plant, or in my business,” he added.

    Even if the 32-hour work week doesn’t make it to the final deal, it’s a “game changer” that the demand is there at all, he said. The demand could plant the idea in labor talks far beyond the UAW-company standoff.

    A UAW win on the 32-hour week would cause a “massive reverberation,” said Cathy Creighton, of Cornell University’s School of Industrial and Labor Relations.

    The demand’s presence is a sign of the COVID-19 pandemic’s lasting effects, said Creighton. While five days of in-person office attendance seems like a thing of the past, “we’ve had fundamental changes in how workers and employers view work life and work-life balance.”

    Many factory workers may not be able to pull off remote work but they can press for a shortened week on the physically demanding work, she noted. Historically, the UAW was one of the first unions to deliver health benefits, vacation and pensions for its members, she noted.

    “I think the labor movement has been playing it safe for a long time, and now they are not,” Creighton said. The UAW’s 32-hour work week demand is a prime example, she said. “The five-day work week is so ingrained in our psyche that to think of something different is like an earthquake.”

    Some research indicates people are ready for a shake-up. Nearly six in 10 people who work five days say they would prefer four 10-hour days, according to an August poll in an ongoing look at worker attitudes run by academic researchers.

    “We all know that living in a plant seven days a week, 12 hours a day, isn’t a living at all. We need real work-life balance. Auto workers deserve a life,” UAW president Shawn Fain told members in a video update days before the targeted strike.

    Roughly 12,700 UAW members so far have walked off the job at a Ford Motor plant in Michigan, a GM plant in Missouri and an Ohio plant for Stellantis NV, the maker of brands like Dodge, Chrysler, Jeep and Ram Trucks.

    Of course, there’s no guarantee how far the demand gets. The companies have counter proposals for the array of union asks, as a chart shows from researchers at Evercore ISI. They don’t yet have counters on the 32-hour work week.

    Switching to a 32-hour week with a 40-hour pay rate would be a sharp labor cost on top of the wage increases the UAW is already seeking, a Stellantis spokeswoman said. It would require hiring at least 25% more workers to stick with current manufacturing schedules, she said.

    “We are extremely disappointed by the UAW leadership’s refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers,” the company said in a statement.

    In a statement, GM said it was “disappointed by the UAW leadership’s actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments.”

    Ford did not respond to a request for comment.

    “It’s a big game of chess that Shawn Fain is playing. We’ll see how it turns out,” Creighton said.

    “Even if they don’t get the four-day week this time, there are going to be other moves in this game in the future,” from the UAW and beyond, Soojung-Kim Pang said.

    “Even if you have to give on the four-day week now, that doesn’t mean you give on the four-day week as an ideal or a goal.”

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  • GM and Ford’s stocks are higher as UAW strike kicks off. Their bonds tell a different story.

    GM and Ford’s stocks are higher as UAW strike kicks off. Their bonds tell a different story.

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    Ford Motor Co.’s and General Motors Co.’s stocks were higher Friday as workers kicked off a strike, but their bonds have been under selling pressure for some time.

    Nearly 13,000 U.S. auto workers went on strike early Friday after the three automakers and the UAW failed to reach an agreement before their national contract expired just before midnight.

    The union has opted for targeted strikes, so workers at a Ford
    F,
    -0.04%

    plant in Michigan and a GM
    GM,
    +0.83%

    plant in Missouri were first to down tools, along with workers at a Stellantis N.V.
    STLA,
    +2.12%

    plant in Ohio.

     UAW President Shawn Fain has said others could join later and asked all 150,000 members to be ready if and when they’re called to strike.

    The strike at all three U.S. carmakers is a break with tradition, as the union for many years has elected to center strike efforts at one company to protect its strike fund and picket-line firepower.

    For more, read: UAW strike: 12,700 Ford, GM and Stellantis auto workers walk off the job

    Ford’s stock was last up 0.5%, while GM was up 1.4%.

    But as the following charts from data solutions company BondCliQ Media Services shows, the bonds have seen far more selling than buying over the last 10 days. Bondholders are often viewed as “smarter” than shareholders, because they tend to be laser-focused on a company’s financials and cash flows, to ensure they will be repaid their principal when bonds mature.


    Net customer flow of Ford and GM bonds (last 10 days). Source: BondCliQ Media Sources

    The next chart shows that Ford has seen more selling than GM.


    Ford and GM’s debt trading volumes (last 10 days). Source: BondCliQ Media Services


    Most-active Ford issues with net customer flow (last 10 days). Source: BondCliQ Media Services


    Most-active General Motors issue with net customer flow (last 10 days). Source: BondCliQ Media Services

    Stellantis, meanwhile, was seeing strong buying of its U.S. dollar-denominated bonds. The company, the former Fiat Chrysler, has far less debt than Ford and GM.

    Stellantis has about $26.5 billion of total debt, according to FactSet data, about $19.7 billion of which is in bonds.

    Ford has $143 billion of debt and $124 billion of bonds. GM has $118 billion of debt, with about $107 billion in bonds, according to FactSet.


    Most active Stellantis NV issues (USD) with net customer flow (last 10 days). Source: BondCliQ Media Services

    Fitch Ratings said earlier Friday the strike will have a limited financial impact on the auto makers, at least for now with just three plants striking.

    “It seems likely the UAW will try to ratchet up pressure on the automakers over time by shifting the strike to more impactful plants and adding more plants to the strike,” Stephen Brown, a senior director at Fitch, said in emailed comments. “The impact on the automakers of striking individual plants could be similar to the semiconductor-induced disruptions that we saw over the past few years.”

    See also: Big Three need to step up for the automotive workers who keep them profitable

    Fitch had already incorporated the potential impact of strikes in its recent decision to upgrade its ratings of Ford and GM, he said. The agency moved Ford to BBB- from BB+, moving it back into investment trade from speculative, or “junk,” status.

    “Ford, GM and Stellantis all have robust liquidity positions that will help them to withstand a potentially drawn-out period of production disruption. Based on June 30 figures, we estimate Ford has over $50 billion of cash and credit facility capacity, while GM has nearly $40 billion,” said Brown.

    Stellantis stock was up 2.2% Friday and has gained 36% in the year to date, outperforming GM’s 1.2% gain and Ford’s 9.0% gain. The S&P 500
    SPX
    has gained 17% in the same time frame.

    For live coverage of the UAW strikes, click here.

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  • UAW strike: Ford, GM, Stellantis record profits haven’t been shared fairly with workers, Biden says

    UAW strike: Ford, GM, Stellantis record profits haven’t been shared fairly with workers, Biden says

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    President Joe Biden on Friday offered his support to the United Auto Workers, as he addressed their strike aimed at the Big Three auto makers.

    Auto companies have seen record profits because of the “extraordinary skill and sacrifices” of UAW workers, Biden said in a brief speech at the White House.

    “Those record profits have not been shared fairly, in my view, with those workers,” the president added.

    “The companies have made some significant offers, but I believe they should go further to ensure record corporate profits mean record contracts for the UAW,” he also said.

    Biden gave his remarks after about 12,700 workers went on strike early Friday as their union and the Big Three automakers failed to reach an agreement before a contract expired.

    It’s a targeted strike at a Ford Motor 
    F,
    -0.08%

    plant in Michigan, a General Motors 
    GM,
    +0.86%

    plant in Missouri and a Stellantis NV 
    STLA,
    +2.18%

    plant in Ohio.

    The UAW so far has not endorsed Biden’s re-election bid, even as the AFL-CIO and other big unions have lined up behind the Democratic incumbent.

    The presidential race in 2024 could be a rematch of 2020’s contest between Biden and former President Donald Trump, who has won over some union households that historically have backed Democrats like Biden rather than Republicans.

    See: Here are the Republicans running for president

    Biden got more support than Trump from union households in the battleground states of Michigan and Wisconsin in 2020, but Trump got more support from such households in Ohio and Pennsylvania, according to Edison Research exit polls.

    Trump has seized on concerns that the car industry’s shift toward electric vehicles
    CARZ,
    which the Biden administration has promoted, could hurt American workers. “The all Electric Car is a disaster for both the United Auto Workers and the American Consumer,” the former president said Friday in a post on his Truth Social platform.

    On Friday, Biden said he hopes the UAW and car companies “can return to the negotiation table to forge a win-win agreement,” and he said he’s sending two administration officials to Detroit — Julie Su, the acting secretary of labor, and Gene Sperling, a senior adviser.

    GM posted a 2022 net profit of $11.04 billion, up from $10.38 billion in 2021, while Ford recorded a 2022 net profit of $7.62 billion, up from $6.43 billion in the prior year. For Stellantis, the parent company for brands such as Chrysler, Dodge and Jeep, last year’s net profit was $17.83 billion, up from $15.12 billion.

    UAW President Shawn Fain said in a statement after Biden’s speech that union members “agree with Joe Biden when he says ‘record profits mean record contracts.’” 

    Fain also said: “Working people are not afraid. You know who’s afraid? The corporate media is afraid. The White House is afraid. The companies are afraid.”

    Now read: Tesla may be the winner of the Big Three labor woes

    And see: Will the UAW strike push up car prices?

    Plus: UAW strike to have limited impact on Big Three, Fitch says

    Claudia Assis contributed.

     

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  • Paid off your mortgage? Be careful — you’re at risk of title theft.

    Paid off your mortgage? Be careful — you’re at risk of title theft.

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    Homeowners may be thrilled when they finally pay off their mortgage, but the accomplishment comes with risks. 

    Retirement Tip of the Week: Be vigilant in protecting your identity and assets, and be aware of how you could fall victim to various scams or theft associated with your home.

    With title theft, thieves transfer a house deed from the rightful owner to another person’s name by using the owner’s personal information. Title theft could also take the form of using equity in a home, such as by opening a home equity line of credit, known as a HELOC, according to Quicken Loans. When a house is unoccupied, thieves could go so far as to sell or rent out the property. 

    Title theft isn’t particularly common, but it does happen, and it’s another reason people should protect their identity and other sensitive information. Older Americans could be at higher risk, especially if they have a lot of equity in their home. About 11,500 people reported losing more than $350 million to real-estate scams in 2021, although that figure includes fraud pertaining to real-estate advertisements and rental agreements, according to the FBI

    Homeowners should keep on top of their documents and may even want to occasionally confirm their information with their county deeds office, the FBI said. Any mail from a mortgage lender should be checked to make sure it doesn’t pertain to your specific property.

    If you are a victim of title theft, open an identity-theft case with the Federal Trade Commission, alert creditors about the fraud and look over your title insurance, which protects homeowners’ rights and which mortgage companies often require home buyers to have, Quicken Loans said

    There are companies that offer title-protection services, although critics say it’s not the same as title insurance and only alerts a homeowner of a problem after it has occurred. 

    “Do you need this service to protect your home from property thieves? The answer is no,” the Maryland Attorney General’s office said in a consumer alert about title-protection services. “Title fraud is very rare, and hardly ever successful. If someone ever tries to transfer your deed without your permission or knowledge, like these title lock companies suggest could happen, the transfer is fraudulent and void from the outset.” 

    Instead, homeowners should monitor their identity and keep an eye on their credit scores, the office said.

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  • Household income rose in just 5 states last year. Is your state one of them?

    Household income rose in just 5 states last year. Is your state one of them?

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    American workers are feeling the pinch.

    The median annual household income in the U.S. was $74,755 in 2022, a 0.8% decline from the previous year after adjusting for inflation, according to the latest data from the Census Bureau.

    The decline in income is “disappointing,” said Sharon Parrott, president of the Center on Budget and Policy Priorities,…

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  • An Investor’s Guide to Navigating a UAW Strike

    An Investor’s Guide to Navigating a UAW Strike

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    The UAW could start soon, though it might not hurt the shares of GM and Ford.


    Jeff Kowalsky/Bloomberg

    The labor contract between the United Auto Workers and the Detroit-Three automakers expired at midnight on Thursday. A deal isn’t done and the union will …

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  • UAW strike: 12,700 Ford, GM and Stellantis auto workers walk off the job

    UAW strike: 12,700 Ford, GM and Stellantis auto workers walk off the job

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    Nearly 13,000 U.S. auto workers went on strike early Friday after the Big Three and the United Auto Workers failed to reach an agreement before their national contract expired just before midnight.

    UAW President Shawn Fain called the targeted strike at a Ford Motor
    F,
    -0.16%

    plant in Michigan, a General Motors
    GM,

    plant in Missouri and a Stellantis NV
    STLA,
    -0.58%

    plant in Ohio. A strike at all three U.S. car makers is a break with tradition, as the union for many years has elected to center strike efforts at one company to protect its strike fund and picket-line firepower. Fain said the union could add more plants to strike as part of its strategy to keep the automakers guessing, and urged all 150,000 UAW members to be ready if and when they’re called to strike.

    “This is our generation’s defining moment,” Fain said Thursday night as he addressed UAW workers by webcast two hours before the deadline. “The money is there. The cause is righteous.”

    Fain said the union is committed to a contract that reflects the “incredible sacrifices and contributions” that its members have made for years. The union has said wages for auto workers who make the top rate have risen about 6% over the past four years, while the three automakers’ North American profits have increased about 65% during that time.

    The union is asking for double-digit wage increases, an end to tiered wages and benefits, the restoration of pensions and cost-of-living adjustments, retiree pay increases and more.

    A Stellantis spokesperson said the company is in contingency mode and sent the following statement: “We are extremely disappointed by the UAW leadership’s refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers.”

    A GM spokesperson said the company will continue to bargain with the union and that “we are disappointed by the UAW leadership’s actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments.”

    Ford did not immediately comment after the strike began, but said in a statement earlier Thursday night that it was unhappy with the union’s counterproposal: “If implemented, the proposal would more than double Ford’s current UAW-related labor costs.”

    GM’s Wentzville, Mo., plant, which the union said has about 3,600 UAW members, builds some of the car maker’s mid-size trucks and full-size vans, including the Chevy Colorado and the GMC Canyon. Ford’s plant in Wayne, Mich., makes Ford Broncos, and about 3,300 members who work in final assembly and paint would be striking. The Stellantis Toledo, Ohio, plant, which has about 5,800 UAW members, makes Jeep Gladiators and Wranglers.

    UAW members join workers around the nation and across industries — such as Hollywood writers and actors, hotel staff and healthcare workers — who are on strike or are preparing to walk off their jobs. Fain reiterated to UAW members Thursday night that amid rising economic inequality, he looks at the auto workers’ strike as part of a larger battle between the haves and the have-nots.

    Michelle Kaminski, associate professor in the School of HR and Labor Relations at Michigan State University, said in an interview with MarketWatch that “when the union president says this is a generational strike, I really agree with him.”

    She added: “When I think about economic conditions, they are more favorable to the union now than [at any point] in the 30 years I’ve been in this field.” She said auto workers have “given up a lot” over the past couple of decades as the companies have needed both government help and worker concessions to survive.

    Kaminski also cited the auto makers’ profit and financial position; the pandemic’s effect on the labor force and how workers’ commitments to their jobs have changed; and increasing inflation as factors in why she sees the timing as key. “The union’s window of opportunity is right now,” she said.

    But CFRA analyst Garrett Nelson said in an interview with MarketWatch that the union “needs to be careful not to overplay their hand, as the balance sheets of the Detroit three are flush with cash and they can probably wait things out longer than the workers can.”

    Automakers could weather a strike, although anything longer than about two weeks is viewed as more impactful and detrimental to the companies. GM has about $39 billion in cash and equivalents, while Ford has around $51 billion, according to a recent Moody’s Investors Service report. Stellantis’s cash and equivalent pile towers over the others, at $69 billion.

    The union’s strike fund starts at $825 million, and striking workers will receive $500 a week. Fain said earlier this week that a targeted strike would help the union have flexibility and apply pressure to the companies as negotiations continue; analysts say it means the union wouldn’t deplete its strike fund so quickly.

    See: Why United Auto Workers are fighting to end a two-tier system for wages and benefits

    The effects of the strike could be far-reaching, both for the companies and workers who may not necessarily be on the picket lines.

    Nelson said the union’s strategy of targeting specific plants could turn into a supply-chain “logistical nightmare” for the auto makers. They will have to adjust deliveries of specific parts to their assembly plants, and the average vehicle is made of more than 30,000 parts.

    “The automotive supply chain is among the most complex of any industry,” Nelson said. “Not knowing which plants the UAW will target in advance could create a massive level of uncertainty and have a crippling impact on production. If the strike goes on for too long, we think auto suppliers could have to cut production and furlough workers at their plants, creating a ripple effect across the industry.”

    Major suppliers’ balance sheets are not as strong, and GM, Ford and Stellantis together generally account for between 25% and 45% of their net sales, so the degradation of the supply chain is a major risk in the event of a prolonged strike.

    The U.S. Chamber of Commerce this week warned about the potential widespread impact of a UAW strike. In a letter to President Joe Biden urging him to help the parties reach an agreement, the chamber said the “Detroit Three are critical to our economy.” More than 690,000 supplier jobs are tied to the auto makers, along with about 660,000 dealership jobs, the chamber said.

    “A strike will quickly impact large segments of the economy, leading to layoffs and potentially even bankruptcies of U.S. businesses,” the chamber said.

    See: Tesla may be the winner of Big Three-UAW labor talks

    Also: Would a United Auto Workers strike push up used-car prices?

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  • Joe Biden’s “Pro-Union” Promise Is Being Fiercely Tested in Detroit

    Joe Biden’s “Pro-Union” Promise Is Being Fiercely Tested in Detroit

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    The deadline is Thursday at 11:59 p.m. More than 100,000 members of the United Auto Workers, the biggest auto union in America, will find out whether they’ve won anything close to the four-year contract with a 46% wage bump they’ve been demanding, or whether they will be launching a historic strike. Detroit’s Big Three automakers—Ford, General Motors, and Stellantis, the successor to Chrysler—might be forced to shutter factories just as the industry struggles to rebound from the pandemic.

    Joe Biden has a lot at stake too. A ten-day strike could cost the economy an estimated $5 billion. But the ramifications for the president extend far beyond the particulars of how the immediate negotiations play out. Biden, who recently declared himself “the most pro-union president in American history,” has been lining up the support of major labor unions for his 2024 reelection campaign—with the glaring exception of the UAW, which has pointedly withheld an endorsement. When Biden, over Labor Day weekend, said he didn’t think a strike would happen, the UAW’s new president, Shawn Fain, threw a brushback pitch. “I think a strike can reaffirm to him where the working class people in this country stand. And, you know, it’s time for politicians in this country to pick a side,” Fain told CNBC. “Either you stand for a billionaire class where everybody else gets left behind, or you stand for the working class.”

    A Democratic operative close to the issue tells me that Fain’s forceful flexing of leverage caught the Biden team somewhat off guard. The president has tried to walk a tricky line when it comes to the auto industry: Two of his prized legislative achievements—2021’s infrastructure bill and 2022’s Inflation Reduction Act—included hefty financial incentives for companies that invest in electric-vehicle plants. That angered the auto unions because fewer workers are needed to build EVs than traditional cars, and because most of the batteries needed for EVs are manufactured either overseas or in non-union American factories.

    The administration tried playing catch-up in August, announcing $15.5 billion in funding and loans, the bulk of the money targeted at converting existing auto plants to EV facilities and retraining union workers. As you might expect, his presumed 2024 Republican challenger is trying to make mischief. “Biden’s Electric Vehicle mandate will murder the U.S. auto industry,” the Trump campaign claimed last week, “and kill countless union autoworker jobs forever.”

    The dealmaking in Detroit is only one part of a wider struggle between workers, industry, and Washington politicians as technology reshapes the economy. Much like EVs, artificial intelligence is also a major point of contention—but in Hollywood, where studios and striking writers and actors have been locked in a months-long standstill. “The question is, Who is going to have the balance of power? Who is going to have control over these things and make money from them?” says Alex Colvin, the dean of Cornell’s School of Industrial and Labor Relations. “This is a critical period.”

    For political alliances as well. Democrats have spent years chasing white working-class voters, mostly in vain. In 2020, Biden won back a crucial share of them in Pennsylvania, Wisconsin, and Michigan. Union membership rates in states like these remain at a historic low, but there are signs of a shift in momentum, with organizing efforts at Amazon warehouses and Starbucks stores as well as behind the Uber and Lyft wheels. Not to mention: the economic and racial mixture of unions has also grown more diverse. How Biden navigates all of these labor currents will have a big impact on what are likely to be close races in 2024 battleground states.

    “We’re clearly seeing an upsurge of worker activity with an understanding that technology, whether it’s AI or other impacts on their workplace, is changing their leverage with employers,” says Neal Kwatra, a Democratic strategist who has worked with both labor unions and elected officials. “There are definitely some Democratic elected officials around the country who are pro-worker, who are pro-union, who are finding ways to be concretely and substantively helpful to these workers’ struggles. But I do not think the party as a whole understands the moment that we are in.”

    One Democrat who clearly gets it is Elissa Slotkin. “What I’ve said to my friends and supporters in labor is, if we don’t use this moment, shame on us. You’re seeing that with UAW right now,” says the Michigan congresswoman, who is running to become one of Michigan’s US senators. “We’ve got to make sure that people at these new [EV] factories are paid a living wage. That’s what just went on in Lordstown—they unionized and they’re leveraging that affiliation for more money, more benefits. We have to get that right. But in terms of who is supporting policies that are pro-union, there is only one party doing that. I know Donald Trump has made electric vehicles his new ‘woke’ culture war. Those vehicles are going to be made. And I am always going to pick Team America over Team China making those damn vehicles.”

    In the past year Biden has dodged three labor bullets—standoffs at UPS, West Coast ports, and in the freight railroad industry, all of which could have blown holes in the economy, ended in agreements, not strikes. Maybe he’ll get lucky again in Detroit tonight. Earning the votes of union members next year, though, is still going to take a lot more than luck.

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    Chris Smith

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  • Love pop music? Largest US newspaper chain is hiring Taylor Swift and Beyoncé Knowles-Carter writers

    Love pop music? Largest US newspaper chain is hiring Taylor Swift and Beyoncé Knowles-Carter writers

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    LOS ANGELES — This week the United States’ biggest newspaper chain posted to its site two unusual job listings: a Taylor Swift reporter and a Beyoncé Knowles-Carter reporter.

    Gannett, which owns more than 200 daily papers, will employ these new hires through USA Today and The Tennessean, the company’s Nashville-based newspaper. The job description for the Swift-focused role announced Tuesday says the company is seeking “an energetic writer, photographer and social media pro who can quench an undeniable thirst for all things Taylor Swift with a steady stream of content across multiple platforms.”

    “Seeing both the facts and the fury, the Taylor Swift reporter will identify why the pop star’s influence only expands, what her fanbase stands for in pop culture, and the effect she has across the music and business worlds,” the company’s website says.

    Gannett announced Wednesday it’ll also hire a reporter dedicated to covering Beyoncé. The company says it’s looking for a writer who is “capable of a text and video-forward approach, who can capture Beyoncé Knowles-Carter’s effect not only on the many industries in which she operates, but also on society.”

    Online criticism of these new roles come in part because of major layoffs at Gannett, where the workforce has shrunk 47% in the last three years due to layoffs and attrition, according to the NewsGuild. At some newspapers, the union said the headcount has fallen by as much as 90%. Last year alone, Gannett cut about 6% of its roughly 3,440-person U.S. media division.

    Some journalists criticized the listings for presenting superfan behavior as a full-time journalism job, especially as job opportunities shrink and music journalists are paid low wages. And that’s compounded by the existential crises of the job, which is beholden to music streaming, algorithms and clicks.

    Both of the Gannett positions require five years of journalism experience working in a digital-first newsroom and the ability to travel internationally. The hourly rates for these roles is listed in a range of $21.63 and $50.87.

    Omise’eke Tinsley, academic and author of “Beyoncé in Formation: Remixing Black Feminism,” says this type of role makes space for more positive stories about Black women.

    But also, she adds, the existence of both jobs directly reflects Beyoncé and Swift’s economic power. “If there wasn’t that component to it, there wouldn’t be a Beyoncé reporter,” Tinsley said.

    It is not uncommon for journalists to develop a beat on a specific figure, particularly in politics — as evidenced by Amy Chozick, who the New York Times hired in 2013 to cover Hilary Clinton exclusively. But most entertainment journalists are responsible for reporting on a wide range of talent — even if they are subject matter experts on a specific artist.

    That was the case for Los Angeles Times reporter Suzy Exposito, who called herself an “unofficial” beat reporter on popular reggaetonero Bad Bunny because she spent a disproportionate amount of time in a previous job covering him compared to other priorities.

    “His near-weekly output became really overwhelming, and it took away focus from a lot of other artists who were also making compelling work,” Exposito said. “He’s so prolific that I think I literally ran out of new words to describe him at some point. He could use his own reporter, too.”

    She said a major challenge for entertainment journalists is the sheer volume of releases from pop artists. “The business of music is a numbers game,” Exposito said. “Hit records become deluxe editions become sold-out world tours, and it can be dizzying for a general music journalist to keep up with when the market is flooded with more releases than ever before.”

    So, are artist-specific jobs the future of music journalism?

    “It is a bit odd, but Taylor Swift Inc., I guess you would call it, is a big economic driver right now,” said Eric Grode, director of the Goldring Arts Journalism and Communications program at Syracuse University. “Taylor Swift is doing a lot of newsworthy things beyond just selling concert tickets, so a reporter would have a lot of good material to work with.”

    If a reporter takes the job seriously and provides more than breathless concert coverage, their established expertise could be valuable for a news organization, Grode said. Still, there are very few musicians who have such a wide cultural reach.

    Some journalists pointed out that while hiring these massively popular artist-specific roles reflect their influence in pop culture, they do fail to invest in local journalism at a company known for its local dailies.

    “At a time when so much serious news and local reporting is being cut, it’s a decision to raise some questions about,” Rick Edmonds, an expert at the journalism think tank Poynter Institute, said of the new positions.

    “There lies the question of SEO — which is essential to drawing traffic to digital media sites — and the fact that people are more likely to click on stories about Taylor or Beyoncé makes it a pretty obvious motivating factor in designating beat reporters to them,” Exposito said. “Digital media is now competing with fan accounts on social media — not when it comes to accuracy, but when it comes to being the first source to report on pop stars’ developments.”

    Top artists prioritize the attention and work of expert reporters, leading to what critic Soraya Roberts has called a “culture of sameness” — yet another barrier to local arts coverage.

    Tinsley believes that posts on social media criticizing the focus of these new roles may reflect a culture of sexism. “Adding to the pantheon of what figures and representatives matter has the potential to do something important,” she said. “I believe some of the dismissals (of these roles) have to do with what we value and don’t value as a society — and I think there’s an implicit misogyny in it.”

    Representatives for Taylor Swift and Beyoncé did not immediately respond to requests for comment.

    ___

    AP Media Writer David Bauder contributed to this story from New York.

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  • UAW strike countdown: Union president says targeted strike possible at all Big Three automakers

    UAW strike countdown: Union president says targeted strike possible at all Big Three automakers

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    United Auto Workers President Shawn Fain said Wednesday that autoworkers and the Big Three automakers are still far apart, although negotiations continue, and that the union may strike all of the Big Three at once.

    “We’re keeping all of our options open. An all-out strike is still a possibility,” Fain said during a webcast with members.

    The UAW and Ford Motor Co.
    F,
    +1.53%
    ,
    General Motors Co.
    GM,
    +0.57%

    and Stellantis NV
    STLA,
    -0.42%

    have made progress during their talks but were still far apart on the union’s key priorities, though negotiations will continue until the deadline of 11:59 p.m. Eastern on Thursday, Fain said.

    “For the first time in our history, we may strike all of the Big Three at once,” Fain said, adding that he looked at this time as “our defining moment.”

    He said if no deal is reached, there’s also the possibility of doing “standup strikes” at certain plants, designed to keep the companies guessing. These could escalate and spread elsewhere in order to give the union leverage in bargaining. He told UAW members that they should not strike unless their local is called to do so.

    A targeted strike helps the UAW avoid distributing strike pay, set recently at $500 a week per member, to all 150,000 of its members. But it could have a broader effect.

    “It is possible for strikes at critical parts plants to have much wider implications,” Marick Masters, a business professor at Wayne State University in Detroit, said in an interview with MarketWatch on Wednesday. 

    He noted that the 1998 strike against GM, a work stoppage by 9,200 workers at two of that company’s plants in Flint, Mich., resulted in shutdowns that affected more than 150,000 workers. 

    See: These Ford, GM plants are the most likely strike targets

    Jody Calemine, a senior fellow and director of labor and employment policy at the Century Foundation, a progressive think tank, said Wednesday that the union is employing an interesting strategy.

    “It will turn the screws slowly and probe for weaknesses, and try to get as much movement out of companies as possible while keeping the options to escalate,” he said.

    Calemine said Fain has done a “masterful job” of painting the fight as a “real showdown” between working families and the companies. But he added that “the principal danger for the union would be losing the narrative. Other places would continue to work, or get laid off or locked out.”

    That’s reflected in some of the online comments by UAW members who watched Fain’s update. One worker said on Facebook: “Strike us all or none at all.”

    The UAW president quoted scripture, repeated his calls for unity and said the “strike plan is driven by faith that together we can and will move mountains.”

    Fain said the companies have revised some of their offers: On wages, Ford has put forward a 20% increase over the life of the four-year contract, up from its previous offer of 9%, while GM’s latest offer is 18% and Stellantis’s offer is 17.5%. That’s compared to a wage increase of 40% — or 46% when compounded annually — that the union sought originally and later revised to 36%.

    “Their proposals don’t reflect the massive profits that we’ve generated for these companies,” Fain said.

    The union has pointed out that while the Big Three’s profit has risen 65% over the past four years, and the pay of each of the companies’ chief executives have risen 40%, the UAW top wage rate has risen 6% over that time.

    See: Why United Auto Workers are fighting to end a two-tier system for wages and benefits

    A GM spokesperson said Wednesday that the company continues to bargain in good faith and sent a statement that reads in part: “We are making progress in key areas that we believe are most important to our represented team members. This includes historic guaranteed annual wage increases, investments in our U.S. manufacturing plants to provide opportunities for all, and shortening the time for in-progression employees to reach maximum wages.”

    Ford and Stellantis did not immediately return a request for comment.

    The most recent U.S. autoworkers’ strike was at GM in 2019, which lasted for nearly six weeks and involved about 50,000 workers.

    See: Would a United Auto Workers strike provide an opportunity for Tesla — and push up used-car prices?

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  • Howard Schultz steps down from Starbucks board of directors

    Howard Schultz steps down from Starbucks board of directors

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    Starbucks Corp. on Wednesday said former Chief Executive Howard Schultz is stepping down from its board of directors, capping a nearly 40-year career during which the company grew from a handful of stores in Seattle into a global coffee chain.

    Schultz’s retirement from the board, which ends his involvement in the company’s leadership, took effect Wednesday and was part of a planned transition, the coffee chain said. Schultz stepped down as Starbucks
    SBUX,
    +0.72%

    chief executive in March.

    The company on Wednesday also said that it had elected Wei Zhang to its board of directors, effective Oct. 1. Zhang was most recently a senior adviser to Chinese e-commerce giant Alibaba Group
    BABA,
    -0.75%

    and also held leadership positions at News Corp China and CNBC China.

    Shares of Starbucks were down 0.7% after hours on Wednesday.

    Starbucks said Schultz “will now turn his attention with his wife, Sheri, to focus on a range of philanthropic and entrepreneurial investments to create greater opportunity, accessible to all.” The company noted that the two were co-founders of the Schultz Family Foundation in 1996, and of the emes project.

    Although he was not technically the founder of the coffee chain, Schultz became the modern face of it. Schultz joined Starbucks in 1982 as its director of operations and marketing. After a brief hiatus from the company, he returned in 1987 as chief executive and bought the business with backing from local investors, according to a biography on the Starbucks website. The chain went public in 1992.

    As the chain’s footprint expanded beyond the U.S., Schultz stepped down from the CEO role in 2000 but returned in 2008. He retired from Starbucks in 2018, then came back as interim chief executive and board member last year.

    Over those years, Starbucks has banked on China for international growth — even as that country’s economy remains turbulent following the postpandemic reopening. It also added food and cold and customizable drinks to its menus and built out its mobile-ordering infrastructure.

    The company has branded itself as a progressive employer and a supporter of social justice. But over the past two years, the company, and Schultz in particular, have faced criticism over the handling of employees who were trying to unionize. Union members have accused the chain of unfair labor practices, retaliation for organizing and delaying contract negotiations, leading to deeper scrutiny from lawmakers.

    “We hope this is an opportunity for Starbucks to change course and leave their union-busting behind them,” Starbucks Workers United, the union representing those workers, said Wednesday in a tweet.

    Still, even as inflation has eaten into consumer savings, Schultz said coffee has remained an “affordable luxury” for many customers. And Starbucks management said that younger, loyal consumers and customizable drinks would help sustain demand.

    According to a filing on Wednesday, Schultz will still be connected to the company in other ways. Starbucks said it would amend Schultz’s retirement agreement from 2018 and continue to provide him and his spouse with security services.

    “The security services will be provided for a period of 10 years and will be evaluated on an annual basis,” the filing said. “In recognition of Mr. Schultz’s leadership as the company’s founder and chairman emeritus, the company will also provide Mr. Schultz with the reimbursement of his monthly healthcare insurance premiums.”

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  • Nasdaq ends 1% down, leading stocks lower as tech shares slump

    Nasdaq ends 1% down, leading stocks lower as tech shares slump

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    U.S. stocks closed lower on Tuesday, with the Nasdaq Composite leading the way down, as Apple’s unveiling of its new iPhone and watch failed to boost appetite for equities. The Dow Jones Industrial Average
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    shed about 16 points, or about 0.1%, to end near 34,647, while the S&P 500 index
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    -0.57%

    closed 0.6% lower and the Nasdaq Composite Index
    COMP,
    -1.04%

    slumped 1%, according to preliminary FactSet data. That was the biggest daily percentage drop in about a week for the Nasdaq. Shares of Apple Inc.
    AAPL,
    -1.71%

    were a focus Tuesday as it rolled out a lineup of new consumer products, including its iPhone Pro Max, which will now start at $1,199 instead of $1,099, while its Pro model’s price stays the same. Investors also remain focused on the inflation data, including the release on Wednesday of the consumer-price index for August, before the U.S. stock market’s open. Apple shares fell 1.9% on Tuesday. Climbing bond yields can pressure high-growth stocks as borrowing costs rise. The benchmark 10-year Treasury yield
    TMUBMUSD10Y,
    4.297%

    edged down 2.4 basis points to 4.263% Tuesday, but was still near its highest level of the year.

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  • Walmart Cuts Starting Wages

    Walmart Cuts Starting Wages

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    Walmart has made adjustments to its pay scale, lowering the starting hourly wages for some jobs such as shelf stockers and those who pack online orders. What do you think?

    “Wage cuts are an unavoidable part of running a massively profitable business.”

    Don Barlett, Systems Analyst

    “Where else can you make cuts if not from the people who have almost nothing?”

    Carol Richling, Audience Recruiter

    “Wages should reflect the cost of living on the streets.”

    Anthony Pareira, Freelance Resuscitator

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  • California fast food workers to get $20 minimum wage under new deal between labor and the industry

    California fast food workers to get $20 minimum wage under new deal between labor and the industry

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    SACRAMENTO, Calif. — Most fast food workers in California would be paid at least $20 per hour next year under a new bill in the state Legislature aimed at ending a standoff between the industry and labor unions over wages and working conditions.

    California’s minimum wage is already among the highest in the country at $15.50 per hour. The bill, filed Monday with the blessing of both labor unions and the fast food industry, would increase the minimum wage to $20 per hour for workers at restaurants in California that have at least 60 locations nationwide — with an exception for restaurants that make and sell their own bread, like Panera Bread.

    The bill will impact about 500,000 fast food workers in California, according to the Service Employees International Union, which has been working to unionize fast food workers in the state. They include Ingrid Vilorio, who works at a Jack In The Box in the San Francisco Bay Area. She said the raise will help her family, who until recently was sharing a house with two other families to afford rent.

    “A lot of us (in the fast-food industry) have to have two jobs to make ends meet, this will give us some breathing space,” said Vilorio, who also works as a nanny.

    The bill is the first of what could be multiple victories for labor unions at the California Legislature this year on the heels of high-profile strikes in the entertainment and hospitality industries dubbed by some as “hot labor summer.” On Monday, the state Assembly voted to advance a proposal to give striking workers unemployment benefits — a policy change that could eventually benefit Hollywood actors and writers and Los Angeles-area hotel workers who have been on strike for much of this year.

    And health care workers are pushing for a $25 minimum wage in a bill that could get a vote before the state Legislature adjourns for the year on Thursday.

    “For us the big victory here is a seat at the table with employers,” said Mary Kay Henry, international president of the Service Employees International Union. “We think the lesson here is major corporations in the United States that operate globally can sit down and think through common issues in their industry with workers.”

    It’s unusual, but not unprecedented, for states to have minimum wages for specific industries. Minnesota lawmakers created a council to set wages for nursing home workers. In 2021, Colorado announced a $15 minimum wage for direct care workers in home and community based services.

    In California, most fast food workers are over 18 and the main providers for their family, according to Enrique Lopezlira, director of the University of California-Berkeley Labor Center’s Low Wage Work Program.

    Raising the minimum wage can both benefit and hinder the economy, according to Sung Won Sohn, an economist at Loyola Marymount University. He said any time wages increase in one sector, it tends to increase salaries in other sectors, too — meaning many other workers will benefit. But higher wages generally mean higher inflation, which increase the price of goods for everyone. Sohn said he estimates about two-thirds of the consumer price index — a measure of the change in prices for goods and services — can be explained by labor costs.

    “From a purely economic analysis, the consequences are pretty clear,” Sohn said. “From a social point of view, many of the workers who are engaged in lower wage jobs — they really need it.”

    The fast food industry’s unique structure — with independent owners operating franchises under the umbrella of large corporations — have made it difficult for governments to regulate and labor unions to organize. Last year, California Democratic Gov. Gavin Newsom signed a law to create a Fast Food Council with the authority to raise wages and set workplace standards for the fast food industry.

    Before the law could take effect, the fast food industry gathered enough signatures to qualify a referendum on the law in the November 2024 election. That meant the law would be on hold until voters could decide whether to overturn it.

    Furious, labor unions responded by sponsoring legislation this year that make fast food companies like McDonald’s liable for any misdeeds of their mostly independent franchise operators in the state. Democratic lawmakers also restored funding to the Industrial Welfare Commission, a long-dormant state agency that has the power to set wage and workplace standards for multiple industries.

    Both of those moves alarmed the business groups. They agreed to withdraw their referendum and to increase the minimum wage in exchange for labor unions dropping both of those issues.

    “This agreement protects local restaurant owners from significant threats that would have made it difficult to continue to operate in California,” said Sean Kennedy, executive vice president for public affairs for the National Restaurant Association.

    The bill must still be approved by the Democratic-controlled state Legislature and signed into law by Newsom. If passed and signed, the bill can only take effect if the restaurant groups pull their referendum from the ballot. In the past, a referendum couldn’t be removed from the ballot, but Newsom signed a law last week allowing it.

    The $20 hourly wage would be a starting point. The nine-member Fast Food Council, which would include representatives from the restaurant industry and labor, would have the power to increase that minimum wage each year by up to 3.5% or the change in the U.S. consumer price index for urban wage earners and clerical workers, whichever is lower.

    ___

    Reporter Olga R. Rodriguez contributed from San Francisco.

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  • FTC Issues Fines For Sassy Retail Employees Who Cut Declined Credit Cards In Half

    FTC Issues Fines For Sassy Retail Employees Who Cut Declined Credit Cards In Half

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    WASHINGTON—Cracking down on the common but unethical practice seemingly rampant in department stores, the Federal Trade Commission began issuing fines this week for any sassy retail employee who held up a customer’s declined credit card and cut it in half. “A lot of these snobbish retail employees seem to derive a sick pleasure out of dramatically snipping the credit card belonging to a self-described shopaholic in half, rather than the standard procedure of handing the card back and simply informing them it’s been declined,” said FTC chair Lina Khan, explaining that these workers got away with the practice for years by blaming the credit card companies, claiming “they told me to do that” on the phone when the shopper looked at them, shocked. “This has been happening since the early 90s, and it’s time we took it seriously—that’s why there will now be a $200 minimum fine for any gum-smacking cashier with scissors in their hand, no exceptions. It’s not only about financial privacy concerns, we also want to cut down on the mental anguish that a consumer is put through when these rude sales associates inform them that they must go and have a little chat with their manager, which they proceed to do behind a nearby door with a little window, allowing them to look back at the customer and snicker within view. These people need to learn that just because you work at a mall, you do not get to be a smug mean girl and get away with it.” At press time, the FTC had issued a warning to American consumers to be especially wary of any retail employee possessing a vaguely French accent and dressed in all black.

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  • Biden Touts Unions and Job Growth During Labor Day Parade in Philadelphia

    Biden Touts Unions and Job Growth During Labor Day Parade in Philadelphia

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    President Joe Biden returned to the state that put him over the top in 2020 to deliver an address marking Philadelphia’s Tri-State Labor Day Parade. “We’re celebrating jobs. Good paying jobs. Jobs you can raise a family on. Union jobs,” Biden said, touting 13.5 million jobs created so far in his term, which includes 800,000 manufacturing jobs.

    “There are a lot of politicians in this country who don’t know how to say the word ‘union,’” he said. “I’m proud to say union. I’m proud to be the most pro-union president, according to the experts, in American history.”

    The president touted his administration’s actions protecting pensions and overtime pay, renewing infrastructure, and redistributing the tax burden, among other policies, and called on Congress yet again to pass the PRO Act, which would make it easier for workers to organize unions.

    Biden’s visit comes as polls of voters’ attitudes toward Biden’s economy remain unfavorable, despite welcome news on inflation and job growth. Friday’s job report showed robust—if slightly slowing—job growth, despite higher interest rates imposed by the Federal Reserve. NBC News reported on Sunday that the Biden campaign’s plan is to continue to avoid wading into Trump’s legal business for the rest of the year, and to focus on touting what has become known as “Bidenomics.”

    In the speech, which took place at the Sheet Metal Workers Local 19 office, Biden did not mention Donald Trump by name, only referring to him as “the guy who held this job before me” and “the last guy.” “When the last guy was here, he looked at the world from Park Avenue,” he said. “I look at it from Scranton, Pennsylvania. I look at it from Claymont, Delaware.” Biden also said his predecessor was one of just two presidents in U.S. history who ended a term with net job losses. The other, he said with obvious relish, was Herbert Hoover.

    Biden’s visit marks the seventh time he’s traveled to Philadelphia this year, and at least the 14th since he began his term. Biden’s first campaign rally of his re-election bid came in front of 2,000 union members assembled at the Philadelphia Convention Center, and immediately followed a major joint endorsement by the AFL-CIO and 17 other unions.

    The visit also comes at the end of what has been called “the summer of strikes,” with major work stoppages, including an ongoing writers’ strike, which entered its fifth-month last weekend.

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    Jack McCordick

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  • From strikes to new union contracts, Labor Day’s organizing roots are especially strong this year

    From strikes to new union contracts, Labor Day’s organizing roots are especially strong this year

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    NEW YORK — Labor Day is right around the corner, along with the big sales and barbecues that come with it. But the activist roots of the holiday are especially visible this year as unions challenge how workers are treated — from Hollywood to the auto production lines of Detroit.

    The early-September tribute to workers has been an official holiday for almost 130 years — but an emboldened labor movement has created an environment closer to the era from which Labor Day was born. Like the late 1800s, workers are facing rapid economic transformation — and a growing gap in pay between themselves and new billionaire leaders of industry, mirroring the stark inequalities seen more than a century ago.

    “There’s a lot of historical rhyming between the period of the origins of Labor Day and today,” Todd Vachon, an assistant professor in the Rutgers School of Management and Labor Relations, told The Associated Press. “Then, they had the Carnegies and the Rockefellers. Today, we have the Musks and the Bezoses. … It’s a similar period of transition and change and also of resistance — of working people wanting to have some kind of dignity.”

    Between writers and actors on strike, contentious contract negotiations that led up to a new labor deal for 340,000 unionized UPS workers and active picket lines across multiple industries, the labor in Labor Day is again at the forefront of the holiday arguably more than it has been in recent memory.

    Here are some things to know about Labor Day this year.

    WHEN WAS THE FIRST LABOR DAY OBSERVED?

    The origins of Labor Day date back to the late 19th century, when activists first sought to establish a day that would pay tribute to workers.

    The first U.S. Labor Day celebration took place in New York City on Sept. 5, 1882. Some 10,000 workers marched in a parade organized by the Central Labor Union and the Knights of Labor.

    A handful of cities and states began to adopt laws recognizing Labor Day in the years that followed, yet it took more than a decade before President Grover Cleveland signed a congressional act in 1894 establishing the first Monday of September as a legal holiday.

    Canada’s Labour Day became official that same year, more than two decades after trade unions were legalized in the country.

    The national holidays were established during a period of pivotal actions by organized labor. In the U.S., Vachon points to the Pullman Railroad Strike that began in May 1894, which effectively shut down rail traffic in much of the country.

    “The federal government intervened to break the strike in a very violent way — that left more than a dozen workers dead,” Vachon says. Cleveland soon made Labor Day a national holiday in an attempt “to repair the trust of the workers.”

    A broader push from organized labor had been in the works for some time. Workers demanded an 8-hour workday in 1886 during the deadly Haymarket Affair in Chicago, notes George Villanueva, an associate professor of communication and journalism at Texas A&M University. In commemoration of that clash, May Day was established as a larger international holiday, he said.

    Part of the impetus in the U.S. to create a separate federal holiday was to shift attention away from May Day — which had been more closely linked with socialist and radical labor movements in other countries, Vachon said.

    HOW HAS LABOR DAY EVOLVED OVER THE YEARS?

    The meaning of Labor Day has changed a lot since that first parade in New York City.

    It’s become a long weekend for millions that come with big sales, end-of-summer celebrations and, of course, a last chance to dress in white fashionably. Whether celebrations remain faithful to the holiday’s origins depends where you live

    New York and Chicago, for example, hold parades for thousands of workers and their unions. Such festivities aren’t practiced as much in regions where unionization has historically been eroded, Vachon said, or didn’t take a strong hold in the first place.

    When Labor Day became a federal holiday in 1894, unions in the U.S. were largely contested and courts would often rule strikes illegal, Vachon said, leading to violent disputes. It wasn’t until the National Labor Relations Act of 1935 that private sector employees were granted the right to join unions. Later into the 20th century, states also began passing legislation to allow unionization in the public sector — but even today, not all states allow collective bargaining for public workers.

    Rates of organized labor have been on the decline nationally for decades. More than 35% of private sector workers had a union in 1953 compared with about 6% today. Political leanings in different regions has also played a big roll, with blue states tending to have higher unionization rates.

    Hawaii and New York had the highest rates of union membership in 2022, respectively, followed by Washington, California and Rhode Island, according to data from the Bureau of Labor Statistics,

    Nationwide, the number of both public and private sector workers belonging to unions actually grew by 273,000 thousand last year, the Bureau of Labor Statistics found. But the total workforce increased at an even faster rate — meaning the total percentage of those belonging to unions has fallen slightly.

    WHAT LABOR ACTIONS ARE WE SEEING THIS YEAR?

    Despite this percentage dip, a reinvigorated labor movement is back in the national spotlight.

    In Hollywood, screenwriters have been on strike for nearly four months — surpassing a 100-day work stoppage that ground many productions to a halt in 2007-2008. Negotiations are set to resume Friday. Actors joined the picket lines in July — as both unions seek better compensation and protections on the use of artificial intelligence.

    Unionized workers at UPS threatened a mass walkout before approving a new contract last month that includes increased pay and safety protections for workers. A strike at UPS would have disrupted the supply chain nationwide.

    Last month, auto workers also overwhelmingly voted to give union leaders the authority to call strikes against Detroit car companies if a contract agreement isn’t reached by the Sept. 14 deadline. And flight attendants at American Airlines also voted to authorize a strike this week.

    “I think there’s going to be definitely more attention given to labor this Labor Day than there may have been in many recent years,” Vachon said. Organizing around labor rights has “come back into the national attention. … And (workers) are standing up and fighting for it.”

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