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Tag: labor

  • Macron pays high price in popularity over pension reform, survey shows

    Macron pays high price in popularity over pension reform, survey shows

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    Emmanuel Macron is paying a high price for his push on pension reform as a survey on Sunday showed the French president is facing a new low in popularity — as low as during the protests of the so-called Yellow Jackets.

    As the French take to the streets to protest against Macron’s pension reform, 70 percent of respondents said they are dissatisfied with the president, according to the Ifop barometer published by Le Journal du Dimanche. Macron’s popularity rating fell by 4 points in one month, it showed.

    Since December, Macron has suffered a substantial drop of 8 points, and he now sees only 28 percent satisfied and 70 percent dissatisfied, according to the poll carried out, Le Figaro emphasized, between March 9 and 16.  

    That is the same period as the negotiations that finally led the Elysée to shun parliament and impose the unpopular pension reforms via a special constitutional power, the so-called Article 49.3, which provides that the government can pass a bill without a vote at the National Assembly, the lower house of parliament, after a deliberation at a Cabinet meeting.

    The procedure has been used in the past by various governments. But this time it’s prompting a lot of criticism because of the massive public opposition to the proposed reform, which raises the legal retirement age from 62 to 64 years. Some media stress that recent opinion polls have shown that a majority of the French are opposed to this type of procedure.

    “You have to go back to the end of the Yellow Jackets crisis in early 2019 to find comparable levels of unpopularity,” writes Le Journal du Dimanche commenting the survey. The outlet also stresses that dissatisfaction with Macron crosses all categories, the younger generations as well as the blue- and white-collar workers.

    A total of 169 people, including 122 in Paris, were taken in custody for questioning on Saturday evening in France during demonstrations marred by tensions between the police and the protesters, according to French media citing figures communicated on Sunday by the Ministry of the Interior. 

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    Jacopo Barigazzi

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  • SVB’s failure proves the U.S. needs tighter banking regulations so that all customers’ money is safe

    SVB’s failure proves the U.S. needs tighter banking regulations so that all customers’ money is safe

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    The run on Silicon Valley Bank (SVB) SIVB— on which nearly half of all venture-backed tech start-ups in the United States depend — is in part a rerun of a familiar story, but it’s more than that. Once again, economic policy and financial regulation has proven inadequate.

    The news about the second-biggest bank failure in U.S. history came just days after Federal Reserve Chair Jerome Powell assured Congress that the financial condition of America’s banks was sound. But the timing should not be surprising. Given the large and…

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  • The government may stop issuing Social Security payments after the debt limit is hit — here’s why

    The government may stop issuing Social Security payments after the debt limit is hit — here’s why

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    There’s a very real possibility the government will stop issuing Social Security payments after the debt limit is hit.

    Scary as that prospect is, however, the alternative might be even worse: A little-known provision of a 1996 law could be interpreted to allow the Social Security trust fund to be used not only to pay Social Security’s monthly checks but also to circumvent the debt limit and pay all the government’s otherwise overdue bills.

    If that happens, any short-term relief to Social Security recipients would come with a potentially huge long-term price tag: The Social Security trust fund could be exhausted much sooner than currently projected—in just a couple of years, in fact.

    Read: I’ll be 60, have $95,000 in cash and no debts — I think I can retire, but financial seminars ‘say otherwise’

    These dire possibilities emerge from an analysis conducted by Steve Robinson, the chief economist for The Concord Coalition, a group that describes itself as “a nonpartisan organization dedicated to educating the public and finding common sense solutions to our nation’s fiscal policy challenges.”

    An issue brief he wrote, entitled “Social Security’s Debt Limit Escape Clause,” is available on the group’s website.

    Let me hasten to add that Robinson is not advocating that the Social Security trust fund be used in this way. In an interview, he instead stressed that he wrote his issue brief because we need to be aware not only that this “escape clause” exists but that its use could have unintended consequences. Though hardly anyone outside Washington knows that it even exists, and relatively few on Capitol Hill, the Treasury Department and the Social Security Administration are very much aware of it.

    Read: ChatGPT is about to make the business of retirement planning and financial advice profoundly human

    Before reviewing the details of this escape clause, it’s worth focusing on the political dynamics that surround it. Because the escape clause lessens the pressure on Congress and the president to come up with a solution to the debt crisis, neither side has an incentive to publicize its existence. But if the government is otherwise pushed to the edge of the fiscal cliff, and it’s facing the potentially huge consequences of an outright default (including the nonpayment of monthly Social Security checks), the political pressure to use the escape clause could be intense.

    The 1996 law that creates the escape clause was passed in the wake of the government hitting its debt limit in 1995 and 1996. Ironically, the intent of that law was to prevent the Social Security trust fund from being used for anything other than paying Social Security benefits. But, Robinson explains, that’s unworkable in the real world. That’s because Social Security checks are sent out by the Treasury’s general account, and if that account is in default the checks would bounce.

    Read: These 3 things will bring you happiness in retirement — and life

    If and when the debt limit is hit, therefore, the only way—in practice—for Social Security checks to continue being issued and cleared through the banking system would be for the Social Security trust fund to “lend” the Treasury sufficient funds that it could pay all the government’s unmet obligations. (I put “lend” in quotes because that’s not exactly how it works; the key is that the “loan” can be structured in ways that don’t count against the debt limit. If you’re interested in reading more about the complex logistics involved, you should read Robinson’s issue brief.)

    Therefore, if the debt limit is hit, which it is projected to do perhaps as early as June, Congress and the president will be on the horns of a huge dilemma:

    • Do they allow Social Security checks to continue getting paid, risking the political fallout of being accused of “raiding” the Social Security trust fund?

    • Or do they stop issuing Social Security payments, risking the political fallout of not issuing Social Security payments, on whom the very livelihoods of many elderly currently depend?

    You can appreciate why Congress and the president don’t want us to know that this escape clause exists. Once we are aware of it, they are put in a no-win situation.

    So fasten your seat belts for a wild ride in coming months as both parties play political brinkmanship over the debt limit and, by extension, Social Security. With both sides by the day hardening their stances, there’s a very real possibility that the debt limit will be hit.

    If that happens, we’ll be hearing a lot more about the little-known provision of a nearly 30-year-old law.

    Mark Hulbert is a regular contributor to MarketWatch. His Hulbert Ratings tracks investment newsletters that pay a flat fee to be audited. He can be reached at mark@hulbertratings.com.

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  • Jobs report shows strong 311,000 gain in February, puts pressure on Fed for bigger rate hike

    Jobs report shows strong 311,000 gain in February, puts pressure on Fed for bigger rate hike

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    The numbers: The U.S. created a robust 311,000 new jobs in February, raising the odds of another sharp hike in interest rates by the Federal Reserve later this month.

    Economists polled by The Wall Street Journal had forecast 225,000 new jobs.

    The increase in employment last month followed a revised 504,000 gain (initially 517,000) in January, the government said Friday.

    The large back-to-back increases could force the Fed to raise interest rates higher than it had planned to slow the economy and loosen up the tightest labor market in decades. The central bank meets March 21-22 to plot its next move.

    A sign advertises job openings outside a business in Illinois. Lots of companies are still hiring, but the economy has slowed and job creation is likely to as well.


    Scott Olson/Getty Images

    Yet there were a few glimmers of hope for the Fed.

    The unemployment rate rose a few ticks to 3.6%. Hourly wages rose just 0.2% to mark the smallest increase in a year. And the share of able-bodied people in the labor force climbed to a three-year high.

    All of these are pressure valves on the labor market and the broader economy from high inflation.

    Investors appeared to put more weight on those factors than another big increase in employment. Stocks rose and bond yields fell.

    Big picture: An expanding U.S. economy has shown lots of resilience in the face of rising interest rates, but analysts doubt the good times can last. Higher borrowing costs typically slow the economy by depressing consumer spending and business investment.

    Just look at the housing market, where soaring mortgage rates have crushed sales and new construction. The same could happen to the rest of the economy if the Fed has to jack up rates more than Wall Street expects.

    Already, a robust U.S. labor market is showing signs of fraying. Job postings have declined, lots of large companies have announced layoffs and workers who lose a job are taking longer to find a new one.

    It just might not be enough for the Fed.

    Market reaction:  The Dow Jones Industrial Average
    DJIA,
    -1.66%
    and S&P 500
    SPX,
    -1.85%
    trimmed premarket losses in Friday trades. The yield on the 10-year Treasury fell to 3.78%.

    Investors hope some signs of cooling in the labor market will encourage the Fed to keep raising interest rates in smaller increments.

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  • GM’s stock slips 2% as auto maker announces buyouts

    GM’s stock slips 2% as auto maker announces buyouts

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    General Motors Co. on Thursday announced employee buyouts that are expected to lead to charges of $1.5 billion as the auto maker seeks to be “nimble in an increasingly competitive market.”

    GM’s
    GM,
    -3.16%
    stock slipped 2% after the news. The announcement comes a little over a week after the Detroit News reported that GM was cutting about 500 jobs, which came roughly a month after the company said it wasn’t planning layoffs.

    “By permanently bringing down structured costs, we can improve vehicle profitability and remain nimble in an increasingly competitive market,” a GM spokesperson said.

    The buyouts, which the company is calling a voluntary separation program, are being offered to U.S. salaried employees with at least five years of service and to global executives with at least two years of service, GM said.

    The program offers employees “an opportunity to make a career change or retire earlier,” the company said. “Employees are strongly encouraged to consider the program.”

    GM said in late January that it planned to implement a program aimed at cutting costs by $2 billion per year by 2024.

    The buyouts are part of that effort, which also includes reducing vehicle complexity and cutting discretionary spending, GM said.

    U.S. employees taking the buyout would receive 1 month of pay for every year of service, up to 12 months, as well as COBRA benefits, a prorated performance bonus and help finding a new job.

    GM said it expects to record the bulk of the separation charges in the first half of 2023.

    The Wall Street Journal reported Wednesday that GM’s crucial pivot to electric vehicles had “stalled.”

    GM has not followed competitors Ford Motor Co.
    F,
    -2.20%
    and Tesla Inc.
    TSLA,
    -2.02%
    in announcing price cuts, with Chief Executive Mary Barra saying in January she believed “we’re priced where we need to be.”

    GM in January reported fourth-quarter earnings that beat Wall Street expectations and issued guidance that was also well above forecast.

    The company said it had led the U.S. auto industry in sales and had the largest year-over-year increase in market share among auto makers, thanks to “strong demand for our products and improved supply chain conditions.”

    GM’s stock has run up 18.2% year to date through Wednesday, while the S&P 500
    SPX,
    -0.22%
    has gained 4%.

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  • Jobless claims jump to 211,000, the highest since Christmas. Blame New York.

    Jobless claims jump to 211,000, the highest since Christmas. Blame New York.

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    The numbers: The number of Americans who applied for unemployment benefits in early March jumped to a 10-week high of 211,000. Yet most of the increase was concentrated in New York and might not signal a broader cooling-off trend in the U.S. labor market.

    New U.S. applications for benefits rose 21,000 from 190,000 in the prior week, the government said Thursday. The numbers are seasonally adjusted.

    It’s the first time in eight weeks claims have topped the 200,000 mark.

    An unusually big increase took place in New York. Raw or actual unemployment applications in the state jumped to 30,241 from 13,878 in the prior week.

    Chief economist Stephen Stanley of Santander U.S. Capital Markets said school workers in New York City are allowed by contract to apply for benefits during winter and spring breaks.

    Asked about the upsurge, a government spokesperson said by email that “the New York State Department of Labor cannot speculate on the increase.”

    California also posted a sizable pickup, perhaps a sign that the recent spate of major corporate layoffs are starting to bite. A number of large tech firms have announced job cuts since last fall.

    The number of people applying for jobless benefits is one of the best barometers of whether the economy is getting better or worse. New unemployment applications remain near historically low levels, however.

    Economists polled by The Wall Street Journal had forecast new claims to total 195,000 in the seven days ending March 3.

    Key details: Thirty-seven of the 53 U.S. states and territories that report jobless claims showed an increase last week. Seventeen posted a decline.

    Most states aside from New York and California reported little change.

    The number of people collecting unemployment benefits across the country, meanwhile, rose by 69,000 to a two-month high of 1.72 million in the week ending Feb. 25. That number is reported with a one-week lag.

    These continuing claims are still low, but a gradual increase since last spring suggests it’s taking longer for people who lose their jobs to find new ones.

    Big picture: Jobless claims are one of the first indicators to emit danger signals when the U.S. is headed toward recession.

    So far, jobless claims remain remarkably low and the economy is still adding plenty of jobs. Economists estimate that the U.S. gained 225,000 new jobs in February.

    Economists expect hiring to slow and layoffs to increase later in the year, however, as rising interest rates restrain the economy and reduce demand for workers. A number of large companies, especially in tech, media and finance, have already announced job cuts.

    Looking ahead: “Absent [New York], the count would likely have been below 200,000 yet again,” Stanley of Santander said.

    “Broadly, initial jobless claims have remained remarkably low despite the flurry of layoff announcements in recent months, underscoring that the labor market retains considerable momentum.”

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    -1.66%
    and S&P 500
    SPX,
    -1.85%
    rose in Thursday trades.

    Wall Street is hoping for signs of cooling in the labor market, which would discourage the Federal Reserve from raising interest rates more aggressively. The Fed is raising rates to snuff out inflation and reduce upward pressure on wages.

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  • French Senate adopts pension reform as street protests continue

    French Senate adopts pension reform as street protests continue

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    The French Senate voted in favor of the controversial pension reform overnight, paving the way for a potential final adoption of the law on Thursday, as thousands of people continue to demonstrate across the country.

    The widespread opposition to the retirement overhaul is a political test to French President Emmanuel Macron, whose liberal party has been struggling to pass the reform ever since it lost its majority in parliament last summer.

    “A decisive step to bring about a reform that will ensure the future of our pensions. Totally committed to allow a final adoption in the next few days,” French Prime Minister Elisabeth Borne tweeted after the vote.

    The French government wants to change the retirement age from 62 to 64, with a full pension requiring 43 years of work as of 2027. The right-leaning Senate adopted the reform with 195 in favor and 112 against the measure.

    Hundreds of thousands of people demonstrated across France on Saturday, and protests were expected to continue on Sunday. So far, strikes have disrupted sectors including public transport, oil refineries, schools and airports.

    On Sunday, Laurent Berger — who heads the largest French labor union — said: “I call on parliamentarians to see what’s happening in their districts. … You can’t vote for a reform that’s rejected by so many in the workforce.”

    During the presidential campaign, Macron vowed to reform the French pension system to bring it in line with other European countries like Spain and Germany, where the retirement age is 65 to 67 years old.

    Official forecasts show that the French pensions system is financially in balance for now, but it’s expected to build up a deficit in the longer term.

    French labor unions are calling for a “powerful day of strikes and demonstrations” on Wednesday, when lawmakers from the Senate and National Assembly are set to hold a small-group meeting to find a compromise on the pensions revamp. If they do reach an agreement, the law could be adopted on Thursday.

    The government could also ultimately decide to adopt the revamp using an exceptional procedure that requires no parliamentary vote.

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    Sarah Anne Aarup

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  • The Onion’s Modern Woman: The Retiree

    The Onion’s Modern Woman: The Retiree

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  • Silicon Valley Confronts the End of Growth. It’s a New Era for Tech Stocks.

    Silicon Valley Confronts the End of Growth. It’s a New Era for Tech Stocks.

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    Silicon Valley could use a reboot. The biggest players aren’t growing, and more than a few are seeing sharp revenue declines. Regulators seem opposed to every proposed merger, while legislators push for new rules to crack down on the internet giants. The Justice Department just can’t stop filing antitrust suits against Google. The initial public offering market is closed. Venture-capital investments are plunging, along with valuations of prepublic companies. Maybe they should try turning the whole thing on and off.

    The only strategy that seems to be working is to lay people off. Tech CEOs suddenly are channeling Marie Kondo, tidying up and keeping only the people and projects that “spark joy,” or at least support decent operating margins. Layoffs.fyi reports that tech companies have laid off more than 122,000 people already this year.

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  • Pathfinder Developer Bans AI Art, Takes A Hard Stance

    Pathfinder Developer Bans AI Art, Takes A Hard Stance

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    Image: Paizo

    Between games, art, and even journalism, a lot of industries are dealing with the rise of artificial intelligence removing the human element of creative works. As people have begun using AI and algorithms to create art rather than hiring workers to do it, companies are making hard stances about whether or not they’ll allow work made by these means to be used on their projects. This includes table-top developer Paizo, which has taken a hard stance against AI art being used as art and writing prompts with its products.

    In a post on its website, the Pathfinder and Starfinder developer says it is adding new language to its contracts that will require any work submitted to the company to have been created by a person and not an AI. The statement makes it clear it believes AI art and writing are a “serious threat” to the livelihood of its creative partners and workers, and it wants a human touch in all its products moving forward. This extends to products on the community content marketplace for both Pathfinder and Starfinder.

    “Our customers expect a human touch to our releases, and so long as the ethical and legal circumstances surrounding these programs remains murky and undefined, we are unwilling to associate our brands with the technology in any way.

    Stated plainly—when you buy a Paizo product, you can be sure that it is the work of human professionals who have spent years honing their craft to produce the best work we can. Paizo will not use AI-generated ‘creative’ work of any kind for the foreseeable future.

    We thank the human artists and writers who have been so integral to our success in the past, and we look forward to working with them for many years to come.”

    Paizo and its employees have been central to conversations around labor in the tabletop space, with the studio having formed the first tabletop union back in 2021. The United Paizo Workers allied with the Communications Workers of America, which has had a hand in much of the unionization efforts within the video game industry over at Activision Blizzard.

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    Kenneth Shepard

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  • I’m 66, we have more than $2 million, I just want to golf – can I retire?

    I’m 66, we have more than $2 million, I just want to golf – can I retire?

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    I’m 66 years and 4 months old.

    My Social Security payments start next month at $3,300 a month. I’m currently working part-time, three days per week, as a professional engineer for $95/hour for my long-time regular full-time employer of 28 years. (I want to leave this position ASAP or sooner.) 

    I currently have about $1.6 million in retirement accounts. My wife (60 years old) has about $600,000 in various regular and retirement accounts. We have a 16-year-old daughter at home attending high school and college in a dual enrollment program. If she stays with the program she’ll have her bachelors at 19. While in high school she takes college classes and we pay no tuition while she’s in high school. 

    Our monthly expenses are about $9,000-10,000 per month including health insurance for my wife and daughter. We own our modest single-family home with no mortgage. Taxes and insurance are currently about $6,000 per year. We currently have no debt, aside from an American Express and Visa that we pay off every month.

    I’m on Medicare. I get walloped for a double premium for part “B” because I’m considered a high-wage earner. The two of us are in reasonable/normal health for a couple of old farts.

    I want to throw in the towel on May 5 and play more golf. Can we do it?

    See: We’re in our 60s and have lost $250,000 in our 401(k) plans — can we still retire?  

    Dear reader, 

    Congratulations on saving so much for your retirement. That’s a wonderful accomplishment alone!

    Because I don’t have all of your financials in front of me, nor am I a financial planner building a comprehensive plan for your retirement, I can’t say for certain if you can retire. However, it does obviously sound like you’re doing well and that you’ve been planning. Instead of telling you to go for it or not, I’m going to offer a few things to consider before you pick up your mid irons. 

    More than $2 million (you and your wife’s savings combined) is a lot of money — I’m not suggesting otherwise — but when it comes to retirement, it doesn’t mean you’re automatically good to go once you hit the million-dollar mark. There are so many factors, some of which you mentioned like healthcare and debt, as well as saving and spending. 

    I harp on spending analysis a lot but to me, it’s so crucial when deciding if and how to retire. Why? Because this is something that, for the most part, you can control. That’s a pretty powerful feeling. 

    So my first suggestion: Review those AMEX and Visa statements, as well as money that comes out of any checking accounts, and make sure that you’re spending the way you want and need to spend. When you retire, you won’t have that part-time income anymore, and while you may be itching to get on the green, you’ll also be stressing out if you don’t have enough green in a decade or two. You’ve told me what your Social Security benefits will be and what your average monthly spending is, but I would suggest really poring over your spending and assessing how comfortable you’ll be if you continue to spend that way when you retire. 

    Check out MarketWatch’s column “Retirement Hacks” for actionable pieces of advice for your own retirement savings journey 

    There’s a second part to that analysis, which is how much money you intend to withdraw from your retirement accounts. I’m not sure if your wife is still working, but regardless, the more money you take out of those accounts every month, the less there is available to grow over time. Taxes also play a part here, depending on if you’re withdrawing from a traditional or Roth-style account. Those taxes could take a larger chunk out of your spending money, as well as potentially give you a heftier tax bill come tax time. 

    Think about this when your daughter goes off to college, too. She may not be there long if she continues with her hybrid high school and college courses (which is wonderful, by the way), but do you plan to pay for her tuition, and if so, where is that money coming from? Advisers tell me all the time: you can take a loan for college, but you can’t take one for retirement. It might be beneficial to have a separate savings account earmarked for education, if you don’t already have one of those or some sort of college savings account like a 529 plan, so that you’re not draining your retirement account for a tuition bill. 

    One last bit about that — plan for the unexpected. What will you do if a major expense arises? Will that money also come from a retirement account, or do you have an emergency account set aside to cover it? Saving a lot of money for retirement is amazing, but it’s not the only task individuals need to manage… coming up with a Plan B, and maybe even a Plan C and Plan D, is necessary too. 

    Also see: Are you planning for retirement all wrong? 

    Next, before retiring, check the way your money is invested. What’s your asset allocation like, and does it need to change? Don’t make alterations just to make them — and definitely don’t make them just because you read the markets weren’t doing so hot that day — but keep in mind this money does need to grow for decades to support you and your wife, so you will need to strike that balance. Reaching out to a qualified financial professional, such as a certified financial planner, can help you make sense of what the best investment mix is, but at the least, log in to your account or call up the firm where your accounts are located and check that asset allocation. 

    Also, you mentioned you’re already on Medicare. I would suggest taking the time now — well before open enrollment — to review your current and expected future health expenses, and then assess how helpful your current coverage is for you. I know you mentioned you and your wife are in reasonable health, but if there are any operations or services you think you may need next year, it’s better to start reviewing what plans provide you the best coverage for your situation so that you’re not paying more out of pocket than necessary. This is an exercise you don’t need to do immediately, but it will certainly help you feel more prepared come the end of the year when it’s time to keep your current plan or switch for something else. 

    As an aside, you’ll eventually pay less in Medicare Part B premiums when your modified adjusted gross income declines. Those premiums are based on your tax returns from two years prior. 

    You sound like you are on the right track, which is wonderful. I would just caution you to tie up a few loose ends before resigning so that you can tee up without worrying. 

    Readers: Do you have suggestions for this reader? Add them in the comments below.

    Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

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  • Labor judge: Starbucks violated worker rights in union fight

    Labor judge: Starbucks violated worker rights in union fight

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    A federal labor judge has ordered Starbucks to reinstate fired seven workers, reopen a shuttered location and stop infringing on workers’ rights after finding that the company violated labor laws “hundreds of times” during a unionization campaign in Buffalo, New York.

    The decision issued late Wednesday by Administrative Law Judge Michael Rosas of the National Labor Relations Board requires Starbucks to post a 13-page notice listing its labor violations and workers’ rights in all U.S. stores.

    The order also requires Starbucks’ interim CEO Howard Schultz to read or be present at a reading of employees’ rights and distribute a recording of the reading to all of Starbucks’ U.S. employees.

    Rosas cited Starbucks’ “egregious and widespread misconduct” in his 200-page decision, which consolidated 35 unfair labor practice complaints at 21 Buffalo-area stores filed by Starbucks Workers United, the labor union organizing Starbucks’ stores. Rosas found that Starbucks had threatened employees, spied on them and more strictly enforced dress codes and other policies.

    The order requires Starbucks to reinstate seven workers who were fired for their union activity and provide financial restitution for 27 other workers for violations like refusing to grant time off. It also requires Starbucks to bargain with the union at multiple stores and reopen a location in Cheektowaga, New York, that was closed amid significant union activity.

    Starbucks said Wednesday it believes the decision and the remedies ordered are inappropriate and is considering its legal options. The parties in the case have until March 28 to file an appeal to the full National Labor Relations Board.

    Starbucks said the individuals in the case were fired for clear violations of the company’s policies, and not because of union activities.

    But union supporters were elated with the ruling, saying it will help energize their campaign.

    “This decision results from months of tireless organizing by workers in cafes across the country demanding better working conditions in the face of historical, monumental, and now deemed illegal union-busting,” said Michelle Eisen, a Starbucks barista and union organizer in Buffalo.

    Eisen’s store voted to unionize in late 2021, the first Starbucks in decades to take that step. At least 289 of Starbucks’ 9,000 company-owned U.S. stores have voted to unionize since then.

    Workers are seeking better pay, improved training and more consistent schedules, among other things. The company says it already provides industry-leading benefits and believes its stores function best when it works directly with employees.

    The ruling came on the same day that U.S. Sen. Bernie Sanders, a Vermont Independent, announced an upcoming vote that could force Shultz to testify about the union campaign before the Senate’s labor committee.

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  • Biden to nominate Julie Su as next US labor secretary

    Biden to nominate Julie Su as next US labor secretary

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    WASHINGTON (AP) — President Joe Biden is nominating Julie Su, the current deputy and former California official, as his next labor secretary, replacing the departing incumbent, former Boston Mayor Marty Walsh.

    Su, a civil rights attorney and former head of California’s labor department, was central to negotiations between labor and freight rail companies late last year, working to avert an economically debilitating strike. She also has worked to broaden employee training programs and crack down on wage theft. If confirmed by the Senate, Su would also be the first Asian American in the Biden administration to serve in the Cabinet at the secretary level.

    Biden, in a statement on Tuesday, called her a “champion for workers.”

    “Julie is a tested and experienced leader, who will continue to build a stronger, more resilient, and more inclusive economy that provides Americans a fair return for their work and an equal chance to get ahead,” he said. “She helped avert a national rail shutdown, improved access to good jobs free from discrimination through my Good Jobs Initiative, and is ensuring that the jobs we create in critical sectors like semiconductor manufacturing, broadband and healthcare are good-paying, stable and accessible jobs for all.”

    Su was considered to lead the department when Biden won the White House but instead became the department’s deputy. Walsh announced his intention to leave the administration earlier this month to lead the National Hockey League Players’ Association. Su will serve as the acting secretary until the Senate acts on her nomination.

    Biden had been under pressure from the Congressional Asian Pacific American Caucus and other Asian American and Pacific Islander advocates to select Su to head the department. This administration was the first in more than two decades to not have a Cabinet secretary of AAPI descent, despite its regular declarations that it was the most diverse in history. Vice President Kamala Harris and U.S. Trade Representative Katherine Tai are of AAPI descent but don’t lead a Cabinet department.

    Su, if confirmed, would also expand the majority of women serving in the president’s Cabinet. She was confirmed by the Senate to her current role in 2021 by a 50–47 vote.

    Su’s nomination drew swift support from Democrats on Capitol Hill, with Senate Majority Leader Chuck Schumer saying she would be “phenomenal” in the job.

    “The president couldn’t have picked a better nominee,” he told reporters. “I’m really excited about her, and we’re going to move to consider her nomination very, very quickly.”

    Sen. Bernie Sanders, I-Vt., who will preside over Su’s confirmation hearing as chair of the Senate health, education, labor and pensions committee, praised the selection. Sanders had urged consideration of Sara Nelson, the president of the flight attendants union, but made clear Su had his strong support.

    “I’m confident Julie Su will be an excellent Secretary of Labor,” he tweeted. “I look forward to working with her to protect workers’ rights and build the trade union movement in this country.”

    But Louisiana Sen. Bill Cassidy, the top Republican on the Senate health, education and labor committee who opposed Su when she was selected for deputy secretary, called her work overseeing the department “troubling” and “anti-worker.”

    The committee should “have a full and thorough hearing process,” Cassidy said.

    Rep. Judy Chu, D-Calif., who chairs the Congressional Asian Pacific American Caucus, said she was “overjoyed” by the selection, thanking Biden in a tweet for “nominating your first AAPI Cabinet Secretary!”

    “It certainly is better late than never,” Chu said in a brief interview, citing CAPAC support for Su two years ago for the top Labor post and praising Su’s credentials as a leader and enforcer of labor laws including minimum wage and occupational safety standards. She said GOP criticism about Su had been fully vetted two years ago and that the coming confirmation process will show their charges “have no basis.”

    Chu noted that Biden had said he would name a Cabinet that looked like America, and “he fulfilled that promise.”

    Su’s nomination also comes at a key moment for labor unions, which have been facing a decline in membership for decades. Unions gained some momentum as workers at major employers such as Amazon and Starbucks pushed to unionize. But Biden — an avowed pro-union president — had to work with Congress to impose a contract on rail workers last year to avoid a possible strike.

    The Labor Department said just 10.1% of workers last year were union members. That figure has been cut nearly in half since 1983 and could fall further, as younger workers are less likely to belong to unions.

    “There’s no one more dedicated and qualified to defend the fundamental rights of working people than Julie Su,” said AFL-CIO President Liz Shuler. “It’s her life’s work.”

    ___

    Associated Press writers Josh Boak, Mary Clare Jalonick and Hope Yen in Washington contributed to this report.

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  • Activision Accused Of Illegally Firing QA Testers Over Remote Work Protest

    Activision Accused Of Illegally Firing QA Testers Over Remote Work Protest

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    Photo: Bloomberg (Getty Images)

    The Communications Workers of America (CWA) have today filed charges against publisher Activision—a company with a long track record of alleged union-busting—claiming the publisher violated several workplace laws in relation to the firing of two QA testers.

    The charges are related to Activision’s recent decision to begin forcing workers back into the office, which has been met with resistance across the company’s workforce. The CWA say that “numerous workers protested the [return to office] plan citing cost of living concerns and the impact it would have on their co-workers who might be forced out of their jobs”.

    “Two QA testers expressed their outrage using strong language. In response, management set up disciplinary meetings where both workers were fired.”

    The CWA argue that “the use of outbursts and strong language in the context of concerted activity by employees was protected by the National Labor Relations Board” until as recently as 2020, before the Trump administration “systematically rolled back workers’ rights, including modifying the standard for determining whether employees have been lawfully disciplined or discharged after making offensive statements, which ultimately limits free speech rights for employees.”

    Activision disagrees. “We don’t allow employees to use profane or abusive language against each other,” a spokesperson for the company, Joseph Christinat, told Kotaku. “We’re disappointed the CWA advocates this type of behavior.”

    The charges have been filed against Activision CEO Bobby Kotick directly, and allege that the firings—which took place on February 17—were made “in response to [the employee’s] engagement in protected, concerted and union activity”. The CWA also allege that Activision “improperly denied a request to have a coworker witness the disciplinary meeting which preceded the termination of [their] employment”.

    “For far too long, Activision has gotten away with treating its employees, especially QA testers, like disposable work horses. Firing two employees for joining with their co-workers to express concern around hasty return to office policies is retaliation, point blank,” CWA Secretary-Treasurer Sara Steffens says. “When faced with unfair treatment by unscrupulous employers like Activision, workers should have the right to express themselves.”

    Update 3/1/2023 9:08 a.m. ET: Added comment from Activision.

                  

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    Luke Plunkett

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  • Biden To Nominate Julie Su As Next U.S. Labor Secretary

    Biden To Nominate Julie Su As Next U.S. Labor Secretary

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    WASHINGTON (AP) — President Joe Biden is nominating Julie Su, the current deputy and former California official, as his next labor secretary, replacing the departing incumbent, former Boston Mayor Marty Walsh.

    Su, a civil rights attorney and former head of California’s labor department, was central to negotiations between labor and freight rail companies late last year, working to avert an economically debilitating strike. She also has worked to broaden employee training programs and crack down on wage theft. If confirmed by the Senate, Su would also be the first Asian-American in the Biden administration to serve in the Cabinet at the secretary level.

    Biden, in a statement on Tuesday, called her a “champion for workers.”

    “Julie is a tested and experienced leader, who will continue to build a stronger, more resilient, and more inclusive economy that provides Americans a fair return for their work and an equal chance to get ahead,” he said. “She helped avert a national rail shutdown, improved access to good jobs free from discrimination through my Good Jobs Initiative, and is ensuring that the jobs we create in critical sectors like semiconductor manufacturing, broadband and healthcare are good-paying, stable and accessible jobs for all.”

    FILE – Julie Su, of Calif., speaks during a hearing of the Senate Health, Education, Labor and Pensions Committee for her to be Deputy Secretary of Labor, on Capitol Hill, March 16, 2021, in Washington. President Joe Biden is nominating Julie Su, the current deputy and former California official, as his next Labor Secretary, replacing the departing incumbent, former Boston mayor Marty Walsh. (AP Photo/Alex Brandon, File)

    Su was considered to lead the department when Biden won the White House but instead became the department’s deputy. Walsh announced his intention to leave the administration earlier this month to lead the National Hockey League Players’ Association. Su will serve as the acting secretary until the Senate acts on her nomination.

    Biden had been under pressure from the Congressional Asian Pacific American Caucus and other Asian American and Pacific Islander advocates to select Su to head the department. This administration was the first in more than two decades to not have a Cabinet secretary of AAPI descent, despite its regular declarations that it was the most diverse in history. Vice President Kamala Harris and U.S. Trade Representative Katherine Tai are of AAPI descent but don’t lead a Cabinet department.

    Su, if confirmed, would also expand the majority of women serving in the president’s Cabinet. She was confirmed by the Senate to her current role in 2021 by a 50–47 vote.

    Her nomination also comes at a key moment for labor unions, which have been facing a decline in membership for decades. Unions gained some momentum as workers at major employers such as Amazon and Starbucks pushed to unionize. But Biden — an avowed pro-union president — had to work with Congress to impose a contract on rail workers last year to avoid a possible strike.

    The Labor Department said just 10.1% of workers last year were union members. That figure has been cut nearly in half since 1983 and could fall further, as younger workers are less likely to belong to unions.

    Associated Press writer Josh Boak in Washington contributed to this report.

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  • Work Stoppages Increased Last Year. Higher Ed Played a Key Role.

    Work Stoppages Increased Last Year. Higher Ed Played a Key Role.

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    The educational-services industry — a category that includes graduate students, faculty members, and undergraduates as well as K-12 staff — accounted for the majority of workers involved in labor stoppages in 2022, according to the Worker Institute at Cornell University’s School of Industrial and Labor Relations.

    According to the 2022 Cornell-ILR Labor Action Tracker Annual Report, 60.4 percent of all workers who went on strike last year were part of the educational-services industry. This resulted in a total of more than 2.5 million strike days, the most of any industry.

    A significant factor in education workers’ large showing can be attributed to one strike: the work stoppage at the University of California’s 10 campuses last fall, said Eli Friedman, associate professor and chair of international and comparative labor at Cornell’s ILR school, and an author of the report. That strike included roughly 48,000 workers, most of them graduate students, and lasted for almost six weeks. Its organizing union described it as the largest work stoppage at any higher-education institution in history.

    Friedman said the UC strike certainly skewed the 2022 data, but it still represents what’s happening in labor movements nationally.

    “The scale [of the UC strike] skews the numbers a little bit, but in terms of looking at the underlying dynamics, I don’t think we’re getting a misread of the labor movement or of labor conditions specifically in higher education by including what’s happening in California, because I think it actually does reflect these broader trends,” he said.

    The Cornell analysis is based on a variety of public sources and collects data on both work stoppages and other labor actions. It groups K-12 and higher-ed workers under the category of “educational services industry.” Friedman said that without the UC strike, K-12 movements would likely make up the majority of labor activity in the educational-services industry because K-12 employs more people than higher education does.

    Overall, education and health care are driving labor activity in the U.S. Friedman said this is because they are two industries that have had success with forming unions, which are losing ground in the private sector.

    “The public sector has become the core of the labor movement,” he said.

    Friedman predicts that higher education will see much more labor activity in the coming year, similar to what Starbucks experienced in 2022. As more graduate students unionize, like employees of the popular coffee giant did, they will form collective-bargaining units and begin to negotiate contracts. Strikes typically occur once contract negotiations have stalled.

    Since December, graduate students at Yale University, Boston University, Northwestern University, the Johns Hopkins University and the University of Southern California have voted to unionize.

    And at Temple University, striking graduate students recently voted overwhelmingly to reject a tentative agreement to end their three-week-old walkout on the Philadelphia campus.

    Last year’s labor activity included a 52-percent increase in work stoppages relative to 2021, though the report’s authors noted this activity was still lower than earlier periods, like the 1970s, and falls short of recent increases documented by the Bureau of Labor Statistics in 2018 and 2019.

    Risa L. Lieberwitz, professor of labor and employment law at Cornell’s ILR school and academic director of the Worker Institute, said labor activity on college campuses in the past year has been notable because of the large numbers of people participating in work stoppages and the wide range of workers involved.

    Lieberwitz, who also serves as general counsel for the American Association of University Professors, said the Covid-19 pandemic brought attention to job security and working conditions in higher education, which spurred labor-organizing efforts. Another, and somewhat less recent, factor she pointed to was the 2016 National Labor Relations Board ruling that allowed graduate students at a private institution, Columbia University, to unionize. And longer-term changes, like the widespread decrease in tenure-track faculty, also set the conditions that unionization efforts responded to, she said.

    Generational shifts in opinion about organized labor are another factor in the recent uptick in unionizing activity, said William A. Herbert, executive director of the National Center for the Study of Collective Bargaining in Higher Education and the Professions at Hunter College, in New York City.

    “People are now seeing unionization as the best mechanism for improving their working conditions, whether they are on campus or off campus,” he said.

    In a 2021 survey conducted by the Pew Research Center, 69 percent of Americans ages 18 to 29 said unions have a positive effect on the country. Herbert said this generational shift has increased unionization efforts across many industries, and that the pandemic also helped drive that growth in organizing across higher education.

    Herbert said that unlike private companies, most universities have abstained from union-prevention activities in recent years. Some institutions, including the University of Michigan and Michigan State University, have neutrality policies regarding their position on unionization efforts.

    According to data from the National Center at Hunter, the number of graduate assistants represented by a union went up by over 10,000 people in 2022.

    Herbert attributed some of the rapid growth in higher-education labor movements to undergraduates, namely resident assistants and dining staff, who chose to unionize.

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    Kate Marijolovic

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  • At 55 years old, I will have worked for 30 years — what are the pros and cons of retiring at that age? 

    At 55 years old, I will have worked for 30 years — what are the pros and cons of retiring at that age? 

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    Dear MarketWatch, 

    I currently own one home, no mortgage with rental income. I own another home that will be paid off the year I turn 55. Both valued at $750,000.  I have a 401(k) and other stocks and investments totaling another $750,000. My debt will be all paid by the year I turn 55.  

    I have been on my job for 27 years. It will be 30 years when I’m 55. What are the disadvantages and advantages of not working after 55 years of age?

    See: ‘I will work until I die’ — I’m 74, have little money saved and battle medical issues. ‘I want to retire so I can have a few years to enjoy life.’

    Dear reader, 

    It is completely understandable that you would want to retire after working for 30 years, especially when you have rental income, but I would caution you to take this decision very seriously and find a few backup plans. 

    One big pro of waiting until 55 is the fact that you get to withdraw from your current 401(k) at that age. It’s called the Rule of 55, and not everyone knows about it. Usually, savers have to wait until they’re 59 ½ years old in order to take distributions from their retirement accounts, such as 401(k) plans and IRAs. An early distribution incurs a 10% penalty, plus taxes. 

    The Rule of 55 gives workers a break if they want to tap into their 401(k) and have separated from their current job for any reason. 

    But you probably don’t want to tap into that 401(k) — or at least, you shouldn’t want to do that.  

    Also see: We have $1.6 million but most is locked in our 401(k) plans — how can we retire early without paying so much in taxes?

    If you stop working at 55, you’re halting a major source of income. Rental property is great, and having no mortgage over your head is a huge plus, but will it be enough to cover your everyday expenses and the unexpected for decades to come? Retirement isn’t what it used to be — people are living longer, which means every dollar you have for retirement needs to last until you die. If you retire at 55, you could potentially be in retirement for 30 years — or more. Do you think your nest egg and any other sources of income, like Social Security and rental income, could cover you for that long? 

    Some people would say $750,000 in a retirement account is more than enough, but others would argue it is not. Of course, it also depends on what your annual expenses are, what future spending could look like if you were to fall ill or need to change something from your current lifestyle. And do you have any other money set aside for various circumstances, like repairs on either of your homes? 

    You could look to see what other sources of income may look like (for example, what can you expect from Social Security?) but you should still find a few backup plans for income so that you’re not sweating it out later in life. Not to be a Debbie Downer, but rental income may not be enough to make ends meet or keep you from distributing too much from your retirement accounts. Also, do you have money set aside to offset your costs if your property is vacant for a little while?

    Check out MarketWatch’s column “Retirement Hacks” for actionable pieces of advice for your own retirement savings journey 

    Also, don’t forget about healthcare. If you’re not married to a spouse who has health insurance through an employer, what would you do? Medicare eligibility starts at age 65, which means you would need your own health insurance for an entire decade, and that can be quite expensive. 

    Instead of retiring fully, is there another job you may be happier working? Or some type of part-time gig you could take on? A huge bonus would be if this job comes with health benefits, as well as another retirement account you could keep putting money into until you’re ready to fully retire. 

    I know this may not have been the answer you wanted to hear, but it’s absolutely worth considering every possible good and bad thing that could come out of retiring early. But as with everything else in life, you need to strike a balance — finding work you can do that brings in an income, while also enjoying your life now. It’s not easy, but it’s worth it to plan this out a bit more before you celebrate the big 55. 

    Readers: Do you have suggestions for this reader? Add them in the comments below.

    Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

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  • I’m a single dad maxing out my retirement accounts and earning $100,000 – how do I make the most of my retirement dollars?

    I’m a single dad maxing out my retirement accounts and earning $100,000 – how do I make the most of my retirement dollars?

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    Dear MarketWatch, 

    I make over $100,000 a year, and expect to for the foreseeable future. As of now, I am contributing 8% of my income to my 403(b) with a 3% 401(a) match; all Roth. It would be more, but I am maxing out a Roth IRA and an HSA as well each year. I am a single father with a 9-year-old daughter, and do not have plans to marry, so I’m planning everything as single. I expect house to be paid off when I (plan to anyway) retire at age 65. I plan to collect Social Security at 67.

    My question is, should I move my 403(b) & 401(a) income to pretax dollars, since I expect to be in a lower tax bracket echelon once I retire? Or leave it at Roth. I’m hoping for some advice on what would generally be the most prudent option to maximize retirement dollars. 

    See: I’m a 39-year-old single dad with $600,000 saved – I want to retire at 50 but don’t know how. What should I do?

    Dear reader, 

    First, congratulations on maxing out your Roth IRA and HSA and contributing to your other retirement accounts — managing that while being a single dad and paying off a home is no simple task. 

    You’ve asked the age-old retirement planning question: should I be investing in a traditional account, or a Roth? For readers unaware, traditional accounts are invested with pretax dollars, and the money is taxed at withdrawal in retirement. Roth accounts are invested with after-tax dollars upon deposit, and then withdrawn tax-free (if investors follow the rules as far as how and when to take the money, such as after the account has been opened for five years and the investor is 59 ½ years old or older).

    As you know, the rule of thumb for choosing between a Roth and a traditional account comes down to taxes. If you’re in a lower tax bracket, advisers will typically suggest opting for a Roth as you’ll be paying taxes at a lower rate now versus a potentially higher one later. For a traditional, you may be better off if you’re in your peak earning years and expect to drop a tax bracket or more at the time of withdrawal. 

    One of the greatest challenges, however, is knowing future tax brackets. You may think you’ll be in a lower one now, but you can’t be sure. We also don’t know what tax rates might even look like when you get to retirement. The current tax rates are expected to increase in 2026, when the brackets from the Tax Cuts and Jobs Act are set to expire. Congress may do something before that, or after of course.

    Check out MarketWatch’s column ‘Retirement Hacks’ for actionable advice for your own retirement savings journey 

    That being said, if you believe you’ll be in a lower tax bracket in retirement, it doesn’t hurt to have some of your money go in a traditional account. Having tax diversification can really work in your favor, too. It allows you more control and freedom when retirement does come, as you’ll be able to choose which accounts you withdraw from and how to save the most on taxes. The more options, the better. 

    You should do your best to crunch the numbers now, and then make a plan to do it every year or so until you get to retirement. Here’s one calculator that can help. 

    Make estimates where you have to, and factor in inflation — I’m sure we’ve all seen how inflation can impact personal finances in the last year alone. There are a few other things you can do to make these calculations. For example, get a sense of what your Social Security income may be by creating an account with the Social Security Administration, which will show you what you could expect to receive in benefits at various claiming ages. Also add in any other income you may get, like a pension.

    After you calculate what you expect to spend in retirement, you can figure out what your withdrawal needs will be — and how that will impact your taxable income depending on if the money comes from a traditional or Roth account. Remember: Withdrawals from Roths do not increase your taxable income, whereas traditional account investments do when taken out.  

    Keep in mind, Roth IRAs have one really great advantage over traditional accounts — they are not subject to required minimum distributions, which is when investors must withdraw money from the account if they haven’t yet done so by the mandatory age. Traditional employer-sponsored plans, like 401(k) and 403(b) plans, are subjected to an RMD. Roth employer-sponsored plans have also had an RMD, though the Secure Act 2.0, which Congress passed at the end of 2022, eliminates the RMD for Roth workplace plans beginning in 2024. (The Secure Act 2.0 also pushed the age up for RMDs to 73 this year, and age 75 in 2033.) 

    Also see: We want to retire in a few years, and have about $1 million saved. Should I move my money to a Roth, and pay off my $200,000 mortgage while I’m at it?

    Traditional versus Roth accounts are just one piece of the puzzle in retirement planning, though. There are many other questions you need to ask yourself, and a financial planner if you’re interested and able to work with one. For example, what rates of return are you anticipating on your investments, and how are your investments allocated? What state do you live in now and will that change in retirement (that will affect your taxes). Are you concerned about leaving behind an inheritance, and have you considered life insurance? And even before you get to retirement, as a single dad, do you have a will, healthcare proxy and disability insurance in the event something unfortunate happens? 

    I know this may feel overwhelming, especially when you’re taking into account calculations and estimates for years and years from now, but it will all be worth it. Consider working with a qualified financial planner, or talking to someone at the firm that houses your investments, and don’t feel obligated to stick with whatever you choose until you retire. As with many things in life, retirement plans tend to change and adapt as you do. 

    Have a question about your own retirement savings? Email us at HelpMeRetire@marketwatch.com

    Readers: Do you have suggestions for this reader? Add them in the comments below.

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  • My fiancé and I are 60. His adult daughter is opposed to our marriage — and insists on inheriting her father’s $3.2 million estate. How should we handle her?

    My fiancé and I are 60. His adult daughter is opposed to our marriage — and insists on inheriting her father’s $3.2 million estate. How should we handle her?

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    What advice would you give to a widow and widower considering marriage on how to manage finances — and deal with adult children?

    We are both 60 years old and plan to work a few more years, mostly for health insurance. We both have about $1.5 million in retirement savings accounts. Our spouses’ 401(k)s and IRAs rolled into our accounts.

    I have another $500,000 in a brokerage and he has almost another $1 million. We both own homes with $300,000 mortgages. Mine is worth $500,000, Paul’s (not his real name) home is worth $1 million. We have no other debt.

    We both have one married, and one unmarried child that we help. We both have two grandchildren.

    We should be set up very well. Here’s the concern: His married, well-off daughter is very aggressive about inheritance. She wants the family home retitled in a trust. She wants all life insurance and brokerage beneficiaries in her name. Her brother has had drug-addiction problems, so she’s cutting him out even though it seems he’s the one who will need help.

    “‘She wants the family home retitled in a trust. She wants all life insurance and brokerage beneficiaries in her name.’”

    The daughter isn’t thrilled about our relationship and suggests we just live together. For religious reasons, I would never do this. Grandma shacking up? What example would I set for my grandchildren?

    As a widowed couple, we are realistic enough to plan for the time one of us is left alone. Paul has diabetes, high blood pressure and already sees a cardiologist. What if he has a heart attack? Stroke? Or if he dies?

    What’s a fair way to mingle finances and allow security for me should he predecease me while allowing Paul’s daughter to ultimately inherit?

    By the way, my children have never raised money as an issue. After we both cared for spouses through cancer, they know life is short and just want us to be happy.

    Happy to Have Found Love Again

    Dear Happy,

    She is overstepping the line, and overplaying her hand.

    The first rule of inheritance is that it’s not yours until the decedent’s money is sitting in your bank account. Your fiancé’s daughter can make all the demands she likes, but the only thing your fiancé has to do is say, “You don’t need to be concerned. My affairs are all in order. I’ve always taken care of my own affairs, and I am not changing now.”

    How your fiancé decides to split his estate is entirely up to him, and can be done in consultation with a financial adviser and attorney, taking into account each of his children’s individual needs. For instance, if you move in together, he could give you a life estate, allowing you to live in the home for the rest of your life, and dividing the property between his two children thereafter. 

    Given that you have your own home, however, you may decide to rent it out, and move back there in the event that he predeceases you. There are so many ways to split an inheritance. You could look at the intestate laws of your state, and follow them. In New York, the spouse inherits the first $50,000 of intestate property, plus half of the balance, and the kids inherit the rest.

    “Paul” may decide to set up a trust for his son, so he can provide an income for him over the course of his life. If he has or had issues with addiction, this will help him while not putting temptation in his way with a lump sum of money. The best kind of trust is the one that deals with any recurring issues directly, and takes into account the person’s circumstances.

    Martin Hagan, a Pennsylvania-based estate-planning attorney who has practiced for four decades, writes: “First, it would authorize distributions only if the beneficiary is actively pursuing treatment and recovery.  Second, it would limit distributions to paying only for the expenses incurred in carrying out the treatment plan that will have been developed for the beneficiary.”

    You have $2 million collectively in a retirement and brokerage account and $200,000 equity in his home, and you can use these next seven years or so to pay off your mortgage, while your fiancé has $2.5 million and $700,000 in equity on his home. You are both well set up for retirement, and let’s hope you have many years to spend together.

    The financial services industry has many opinions. You should, advisers say, have 10 times your salary saved by the time you’re 65 years old. You don’t mention your salary, but I would be surprised if many people in America had that much money saved, especially given all of the unexpected events — divorce, illness, job loss — that can occur in the intervening years.

    You also have other priorities than dealing with an aggressive daughter/daughter-in-law. AARP suggests that most people should look into long-term care insurance between the ages of 60 and 65, around the time most people are eligible to qualify for Medicare. If you do it earlier, it can serve as a savings account in the event that you never need long-term care, AARP says.

    As retirement columnist Richard Quinn recently wrote on MarketWatch, everybody’s circumstances are different. “Living in retirement isn’t about averages. It isn’t about what other people do or the opinions of experts, especially online instant experts who don’t know anything about you and have yet to experience many years of retirement themselves.”

    Don’t give too much oxygen or power to your future daughter-in-law. Her father should give her a stock answer, and be firm. If she persists, he can say, “The subject is closed. I need you to respect the decisions I make about my own life, respect my privacy on these matters, and it would be nice if you would be happy for us, and support us in our marriage together.”

    You can’t change people. But you can change wills.  

    You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com, and follow Quentin Fottrell on Twitter.

    Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

    The Moneyist regrets he cannot reply to questions individually.

    More from Quentin Fottrell:

    My boyfriend wants me to move into his home and pay rent. I suggested only paying for utilities and groceries. What should I do?

    My dinner date ‘forgot’ his wallet and took the receipt for his taxes. Should I have called him out for being cheapskate?

    My boyfriend lives in my house with my 2 kids, but refuses to pay rent or contribute to food and utility bills. What’s my next move?

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  • Medieval Times Scrambles To Fly In Knights From Other Castles Amid Strike

    Medieval Times Scrambles To Fly In Knights From Other Castles Amid Strike

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    Unionized workers at Medieval Times’ castle in Buena Park, California, launched a surprise strike against their employer last Saturday afternoon, just ahead of the day’s second performance. The dinner-theater chain managed to put on its show, but not without some serious scrambling as workers headed to the picket line.

    According to four workers from the castle, Medieval Times substituted a horse trainer for the show’s yellow knight ahead of the performance. Such a replacement would typically not be trained for the dangerous jousting and combat stunts that the knights perform as they fight for the queen’s honor. So Medieval Times apparently went off script.

    There’s a standard moment in the Medieval Times show where the chancellor invites any knights to leave if they believe the danger of combat is too great: “If any of you should lament this petition and its dangers, you are free now to retire in honor.” It’s a perfunctory overture that the brave knights always decline. But in this case, the employees told HuffPost, the substitute knight took the chancellor’s offer and fled the arena on his horse, never to return.

    That left revelers who’d been assigned the yellow knight without a hero to cheer for.

    “That part of the show is standard, but no one is supposed to leave,” said Erin Zapcic, a striking performer who was outside when the show took place.

    Zapcic’s telling was corroborated by another worker who was inside the castle at the time. This worker, who spoke on condition of anonymity because they don’t have union protections, said the company also tapped workers from other departments to work as “squires” in the show, assisting the knights in the arena. The role requires working in close proximity to horses. One of the substitute squires was running around the sand arena in his running shoes, they recalled.

    “It was not a safe environment,” the worker said.

    Medieval Times did not respond to requests for comment on the strike or questions about how it was handling staffing during the work stoppage.

    The company soon brought in other trained knights and cast members from far-flung castles to fill in as replacements ― derisively called “scabs” in union parlance ― in order to keep the Buena Park schedule on track. The striking workers saw some of the replacements arrive with their luggage in tow. (Medieval Times has nine U.S. castles and one in Canada.)

    Julia McCurdie, another performer on strike, said the company must have gone to great expense to bring in replacements.

    “To see them spend thousands upon thousands of dollars flying people out from other castles, putting them up in hotels, paying them a per diem to cover our shifts … That money could have easily been spent on paying us a living wage, which is what we’re asking,” McCurdie said.

    Medieval Times workers have been pressing the company to pay more, with many saying they earn about $18 per hour, or even less ― a sum that they say fails to match either their training or the high cost of living in Southern California. But union members say they went on strike because of the company’s unfair labor practices, accusing management of failing to bargain in good faith and unlawfully trying to silence them.

    Workers who strike over alleged unfair labor practices generally have more legal protections than workers who strike for economic reasons, and it’s more difficult for an employer to permanently replace them. The Buena Park workers became the second group of Medieval Times workers to unionize last year, following a successful union drive at the company’s Lyndhurst, New Jersey, castle. (Medieval Times operates nine castles in the U.S. in all.)

    The union does not include the castle’s food and retail workers. Many workers in the castle’s stables department, which is part of the union, have chosen to continue working through the stoppage, employees told HuffPost. But more than half the bargaining unit has opted to join the picket line. Zapcic said some of the workers in other departments have joined the picketers on their days off or during breaks as well.

    “More people walked off with us than I thought would,” said Jake Bowman, a knight at the castle. “There was a lot of fear that we would be on our own, but the community is rallying behind us, and that’s given a lot of people confidence to do this for as long as it takes.”

    Bowman said the “final domino” preceding the strike was the company’s decision to target their social media accounts.

    Last year, Medieval Times sued the workers’ union, the American Guild of Variety Artists, for allegedly infringing on the company’s trademark with its campaign name, Medieval Times Performers United, and its Middle Ages-themed logo. More recently, the company appears to have escalated its trademark fight by trying to have the Buena Park bargaining unit’s TikTok and Facebook accounts hushed.

    As HuffPost reported last month, the union recently learned that its TikTok account had been banned following an intellectual property complaint. TikTok has not responded to repeated requests for comment from HuffPost.

    “There was a lot of fear that we would be on our own, but the community is rallying behind us, and that’s given a lot of people confidence to do this for as long as it takes.”

    – Jake Bowman, Buena Park Medieval Times knight

    Perico Montaner, the CEO of Medieval Times, also appears to have filed an intellectual property complaint with Facebook regarding the union’s Buena Park account. Facebook parent company Meta told HuffPost that one of the union’s posts was taken down erroneously but later restored. The social media company declined to comment further, citing the Medieval Times litigation.

    The American Guild of Variety Artists has filed unfair labor practice charges against Medieval Times over both the lawsuit and its apparent attempts to quash the social media accounts. Labor law forbids employers from retaliating against workers for coming together and exercising what’s known as “protected concerted activity.”

    Zapcic said Medieval Times has also muzzled the workers’ supporters by hiding comments under the company’s social media posts, where commenters were calling for the company to bargain and raise wages.

    “We knew a while ago we were going to have to escalate things, but once it got to the point where they were actively silencing us and our supporters and fans, we just said we have to kick this up a notch,” said Zapcic. “Timing-wise, it’s a busy week. Valentine’s Day is a huge revenue generator [for Medieval Times]. It just seemed like if we were gonna do it, we were gonna have to do it now.”

    Sparring with workers on social media can be a dangerous game for any employer to play. The AFL-CIO labor federation put together a TikTok on Medieval Times’ trademark complaints, which likely helped steer union supporters into the comments section of the company’s social media posts. At some point, the company appears to have dropped its TikTok handle, @medievaltimestherealone, and migrated to a new one, @medieval.times.official.

    After word spread about the TikTok banning, comedian Ben Palmer reached out to the Medieval Times workers to see if there was any way he could help. Palmer has 3.7 million followers on TikTok, where his handle befits his schtick: @palmertrolls. Palmer realized that Medieval Times’ old TikTok handle was left up for grabs ― so, he says, he snagged it, branded it “Mid Evil Times,” and linked to the union’s GoFundMe for strikers, asking followers to “help us stand up to the overlords.”

    @palmertrolls

    The new Medieval Times TikTok: Tiktok.com/@medievaltimestherealone 🎤 my live comedy show dates: Tucson, AZ – 2.18 Syracuse – 3.1 NYC – 3.2 Dallas – 4.7 4.8 Richmond – 4.19 Chicago – 4.26 Sacramento – 5.23 San Francisco – 5.24 Brea, CA – 5.25

    ♬ original sound – Ben Palmer

    Palmer put together a TikTok blasting Medieval Times management that had more than 660,000 views as of Friday afternoon. By contrast, a typical TikTok from the company itself gets a couple thousand eyeballs.

    Asked about his decision to wade into the Medieval Times fight, Palmer told HuffPost in an email that he often trolls companies he believes are mistreating workers, and that he previously emailed Starbucks, Frito-Lay, Nabisco and others when their employees went on strike.

    “I support employees making a better life for themselves and the fight against unnecessary corporate greed that leads to unnecessary suffering,” he said.

    As for being able to grab the company’s old TikTok handle, Palmer said: “I guess I could say I’m a little surprised they left their username available, but it also makes sense that they’d be careless.”

    The strike at Buena Park is open-ended, with workers vowing to stay on the picket line until the company stops its alleged unfair labor practices. The union had a bargaining session with management on Wednesday ― at the same hotel where replacement workers appear to be staying.

    Zapcic said strikers have been encouraging customers not to cross the castle’s picket line. Many, she said, are unaware of the labor dispute and upset to hear from cast members who have been replaced. The company has been offering credits and refunds to customers with tickets who would rather wait until the dispute is resolved.

    Like the Buena Park castle, workers at Medieval Times’ New Jersey castle are trying to bargain their first union contract. They are not on strike at the moment, but Marcus de Vere, a knight in New Jersey, said he feels inspired by his fellow performers on the opposite coast.

    “I’m extremely proud of them. It takes a lot of courage to do something like that, and they are fed up just like we are,” said de Vere. “They’re just speaking the truth. What is this company afraid of?”

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