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Tag: us department of labor

  • US to pay $6.5 million in lost wages owed to Mexican migrant workers | CNN

    US to pay $6.5 million in lost wages owed to Mexican migrant workers | CNN



    CNN
     — 

    Some 13,000 Mexican migrant workers are owed $6.5 million in unpaid wages, according to a tweet from the United States Department of Labor’s Bureau of International Labor Affairs, which announced a joint effort with Mexico to locate and compensate the workers.

    “This program will return millions of dollars in back wages to Mexican nationals who participated in US temporary foreign worker programs,” tweeted Ken Salazar, the United States Ambassador to Mexico, on Tuesday.

    The Mexican ministry and the United States Department of Labor’s Bureau of International Labor Affairs is launching the H-2A Workers’ Wages Recovery Program to ensure the workers can collect their compensation, Salazar added.

    Skilled foreign farm workers are the backbone of US agriculture and are often in the US on H-2A seasonal visas. It is unclear who these workers were employed by when they failed to receive their full wages, and what years they were employed.

    The money owed to these thousands of workers was recovered by the US Department of Labor after it failed to locate the individuals in order to deliver their checks, according to a press release from Mexico’s Ministry of Labor and Social Welfare.

    The partnership will attempt to locate the migrant workers who are believed to have “received less than the legally established salary from their employers in the United States,” according to a press release by Mexico’s Ministry of Labor and Social Welfare.

    The US is expected to send Mexico a list with names of workers who are “owed wages and overtime.” Mexico will then look up the workers in government databases and inform them of their checks.

    “Together, we watch over labor rights,” tweeted Luisa Alcalde, Mexico’s Minister of Labor and Social Welfare, on Tuesday.

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  • The US economy added 311,000 jobs in February, outpacing expectations | CNN Business

    The US economy added 311,000 jobs in February, outpacing expectations | CNN Business


    Minneapolis
    CNN
     — 

    The US economy added 311,000 jobs in February, according to the latest monthly employment snapshot from the Bureau of Labor Statistics, released Friday.

    That’s a pullback from the blockbuster January jobs report, when a revised 504,000 positions were added, but shows the labor market is still emitting plenty of heat.

    The unemployment rate ticked up to 3.6% from 3.4%.

    February’s net job gains surpassed economists’ estimates for a more modest month, with only 205,000 to be added. Separately, downward revisions to December’s and January’s totals weren’t that drastic.

    While Friday’s report is a strong one, that’s actually bad news in the broader context of the Federal Reserve’s campaign to curb high inflation, said PNC Financial Services chief economist Gus Faucher.

    “It’s much hotter than the economy can run, and so this means the Fed is going to have to continue to hike interest rates,” he told CNN. “And that makes a recession more likely.”

    Barring a surprisingly low Consumer Price Index inflation report next week, Faucher said he expects the Fed to go forward with a half-point rate hike at its March 21-22 meeting, which would be a higher pace than the recent, more moderate quarter-point increase.

    The Fed has been battling for almost a year to slow the economy and crush the highest inflation in 40 years, but the labor market continues to defy those efforts.

    “Coming up on the one-year anniversary of the Fed’s first rate hike, we never thought we would see the economy churning out 311,000 more jobs this month,” said Chris Rupkey, chief economist of FwdBonds, in a statement. “The party is on and the labor market is having a blast. The economy clearly is not landing, it is soaring.”

    The monthly job gains remain well above pre-pandemic norms, when roughly 180,000 jobs were added per month between 2010 and 2019, BLS data shows. However, the labor market remains tight and imbalances continue to persist in the ongoing recovery efforts from the devastating pandemic.

    Labor turnover data released earlier this week for January showed that there were 1.9 job openings for every person looking for one. Fed Chair Jerome Powell has frequently highlighted how the labor market remains short of pre-pandemic growth projections by more than 3 million people.

    The pandemic accelerated expected demographic trends (the aging out of the massive Baby Boom generation) with increased retirements; people also dropped out of the workforce for care-related needs and health concerns such as long Covid; and there were hundreds of thousands of workers who died from Covid.

    February’s employment report showed a 0.1 percentage point increase in the labor force participation rate to 62.5% — the highest its been since April 2020. However, it remains below pre-pandemic levels of 63.4%.

    Additionally, there was some upward movement in the jobless rate, which increased 0.2 percentage points to 3.6%.

    “Contributing to upward pressure here, there were more people looking for work,”said Mark Hamrick, senior economic analyst at Bankrate.

    Industries with notable job gains included leisure and hospitality, retail trade, government and health care. After being crushed during the pandemic, the leisure and hospitality has been steadily adding back employees and trying to meet increased demand from consumers shifting their spending from goods to services.

    Average hourly earnings — a closely watched metric as the Fed seeks to evaluate the impact of rising wages on inflation — grew 0.2% month-on-month and were up 4.6% over the year before.

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  • Workers at second Apple store vote to join union | CNN Business

    Workers at second Apple store vote to join union | CNN Business



    CNN Business
     — 

    Apple workers in Oklahoma City have voted to form the second-ever labor union at one of the company’s US stores, in the latest sign that organizing efforts are gaining traction inside and outside the tech and retail industries.

    In a preliminary tally by the National Labor Relations Board on Friday evening, 56 workers, or 64% of those casting ballots at the Penn Square Mall Apple store, voted to be represented the Communication Workers of America, and 32 voted against it. Turnout was strong, with 88 of a potential 95 workers participating in the vote.

    The union victory comes four months after Apple store workers in Towson, Maryland, made history by voting to form Apple’s first US unionized location. In late June, the NLRB officially certified the union election win.

    Workers at both locations have said they’re looking to unionize in an effort to have more of a say in how their stores are run. Some also said they were inspired by union pushes this year at Amazon and Starbucks.

    Apple did not directly address the vote results when asked for comment Friday.

    “We believe the open, direct and collaborative relationship we have with our valued team members is the best way to provide an excellent experience for our customers, and for our teams,” said the company’s statement. “We’re proud to provide our team members with strong compensation and exceptional benefits. Since 2018, we’ve increased our starting rates in the US by 45% and we’ve made many significant enhancements to our industry-leading benefits.”

    The vote was roughly in line with what employees leading the organizing effort were expecting, according to Leigha Briscoe, one of the members of the organizing committee at the store.

    “We felt like we had the majority support, and as long a people got out and cast their vote, we would win,” Briscoe told CNN Business late Friday after the vote tally.

    Briscoe has been an employee at the store for six years. She said the employees who wanted to form a union approached CWA, rather than CWA trying to organize the store on its own.

    Briscoe, 28, is typical of many of the younger workers leading successful union organizing drives nationwide in the wake of the pandemic. Many of the successful efforts, such as at an Amazon warehouse in Staten Island, New York, and at more than 200 Starbucks stores nationwide, have been led by workers in their twenties or early thirties.

    Between January and July of this year there were 826 union elections, up 45% from the number held in the same period of 2021, according to a CNN analysis of data from the NLRB. And the 70% success rate by unions in those votes is far better than the 42% success rate in the first seven months of 2021.

    But only 41,000 potential union members were eligible to vote in the 2022 elections. Even if the unions had won all those votes — NLRB data don’t break down how many workers worked at each company holding a vote — it would be a small fraction of the more than 100 million workers at US businesses who don’t belong to a union, according to Labor Department statistics.

    The retail sector has a far lower rate of unionization than some other industries. Labor Department data show only 4.4% of retail workers nationwide are members of unions, compared to 6.1% of employees working at businesses overall.

    When including government employees, only 10.3% of workers nationwide are union members, roughly half the rate of union membership in 1983, the first year it was tracked by the Labor Department, when union membership made up 20.1% of the nation’s workers.

    Oklahoma is not particularly fertile ground for union efforts. The Labor Department data show only 5.6% of workers overall are union members, barely more than half of the 10.3% national rate.

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  • Job site ZipRecruiter cutting 20% of its staff | CNN Business

    Job site ZipRecruiter cutting 20% of its staff | CNN Business


    New York
    CNN
     — 

    Fewer employers looking for workers means 270 employees at job search site ZipRecruiter will soon be out of a job.

    The company is cutting 20% of its staff by the end of this month, the company disclosed in a filing late Wednesday.

    “This action was taken in response to current market conditions and after reducing other discretionary expenses, with a view toward driving long-term efficiency,” according to the filing.

    The company had previously said it is experiencing a “typical softness in jobs posting” in January, but sounded other alarms about a slowing in the labor market. Its first quarter revenue fell 19% from a year earlier and it forecast that its revenue in the current quarter would be down nearly 30% from the second quarter of 2022.

    The job search site still projects adjusted earnings that are roughly the same for this year as last year, although it said to do so it would “respond to our environment quickly” by “increasing our focus on profitability during times of decreased demand from employers.”

    About half of the 270 employees losing their job are in the sales and customer support teams. The company will take a charge of between $7 million to $9 million to cover severance costs. It expects to still make the same level of profits, excluding special items such as severance, as in its earlier guidance.

    It also announced that CEO Ian Siegel agreed to a 30% cut in base salary, as of June 1. He has a base salary of $550,000, according to an earlier filing, but had total compensation last year of about twice that amount.

    Layoffs across the tech sector have become widespread in recent months. Amazon, one of the nation’s largest private-sector employers, has announced two rounds of job cuts this year totaling 27,000 positions, and Facebook holding company Meta has announced 21,000 job cuts since last fall. Alphabet, Microsoft and Salesforce — and especially Twitter — have all announced large job cuts.

    Outplacement firm Challenger, Gray & Christmas said Thursday there have been 137,000 layoffs in the sector in the first five months of the year, the most job cuts in the sector since there were 168,000 in all of 2001, the year after the dot.com bubble burst.

    Despite all the job cuts in technology and also in media, US employers overall are still hiring more people than they’re cutting.

    Private sector employment increased by 278,000 jobs in May, according to ADP’s monthly National Employment Report released Thursday, much stronger than the 170,000 forecast by economists. Economists are also forecasting a gain of 190,000 jobs for May when the Labor Department issues its monthly jobs report Friday. The April jobs report also came in much stronger than expected, as employers added 253,000 jobs.

    Still, hiring is at a slower pace than a year ago, when employers added 445,000 jobs a month, on average, in the first half of 2022. The Labor Department’s count of job openings, while up 3% in April compared to March, is down 14% from a year earlier — though that still means there are 1.8 jobs available for every job seeker.

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