Posts tagged labor costs
Record UAW Contracts = Record UAW Layoffs
June 10, 2024 // Mapped out, the numbers are staggering. Thousands of employees missed paychecks or were forced to find new jobs across five states as automakers cut shifts and pared back production. A 25 percent pay raise sounds good in theory, but if Ford cuts a third of its 150 Lighting shifts at the Rouge to cover that expense, then the auto workers affected may be worse off than they were before the new contract. Although no automaker has escaped unscathed, the blow has fallen hardest on UAW members at Stellantis. Since the UAW and Stellantis came to the new contract agreement, over 1,300 UAW members at the company have permanently lost their jobs, alongside thousands more temporarily laid off as the company tries to control rising labor costs.
Thousands of hotel workers to rally in 18 cities ahead of contract negotiations
May 1, 2024 // Unionized hotel workers demanding significant pay raises will rally on May Day in 18 U.S. and Canadian cities, as talks are beginning with operators Marriott International (MAR.O), opens new tab, Hilton Worldwide Holdings (HLT.N), opens new tab and Hyatt Hotels Corp (H.N) , opens new tab. Talks will cover about 40,000 workers who look to secure new contracts for the first time since the pandemic. Workers want to reverse pandemic-era staffing and service cuts, as well as duplicate the big pay hikes that organized workers across the nation have been winning in the recent years.
A major Burger King franchisee in California says he can’t roll out order kiosks fast enough due to the state’s new $20 fast-food minimum wage
April 19, 2024 // "We can't move fast enough on this," Harsh Ghai told Business Insider in an interview in early April. "We have kiosks in probably about 25% of our restaurants today," he said. "However, the other 75% are going to have kiosks in the next probably 30 to 60 days." Ghai said he owns 180 fast-food restaurants in California, including about 140 Burger King locations and numerous Taco Bell and Popeyes restaurants. Ghai said that he was the largest Burger King franchisee on the West Coast, though BI was unable to independently verify this. "We are installing kiosks in every single restaurant," he said.
CALIFORNIA: Dave’s Hot Chicken tests kiosks, bigger drinks in face of $20 CA wage
April 3, 2024 // “We didn’t see the ability to pull labor out of the restaurant, but we did see some positive impact on sales,” Bitticks said. Dave’s labor deployment at the cash register — the position most likely to be replaced by kiosks — is already fairly small. The brand still needs workers present to assist customers with kiosks, in the same way grocery stores deploy workers to oversee the self-checkout process, he said. Tickets placed at kiosks are about 7% to 8% higher than orders placed with an employee, Bitticks said. This increase is driven by greater orders of the brands’ entrees, and possibly by guests trying new items they notice on their own, rather than trying items based on conscious upselling. Dave’s managers report customers across age demographics are using the kiosks, Bitticks said, rather than just younger diners.
SEIU, allies say $20 fast food wage should have minimal impact on employment
April 3, 2024 // “Our fight was never just about the raise, but having the power to improve our industry,” said Angelica Hernandez, a Los Angeles McDonald’s worker and member of the Fast Food Council created by AB 1228. Hernandez, speaking through an interpreter at a press event hosted by the Service Employees International Union and the Roosevelt Institute, a liberal American think tank, said employers are retaliating against supporters of AB 1228.
Here’s what might happen after California raises fast-food wages to $20, from higher burger and pizza prices to better wages for retail workers
March 7, 2024 // Tower said he expected fast-food chains to focus on their value deals in California to attract customers amid higher menu prices. Zackfia said she thought digital order kiosks, which restaurants are rolling out to save on labor costs and improve order accuracy, would spread "even more quickly" in California.
Opinion: Protect workers by preventing union neutrality agreements
February 21, 2024 // A neutrality agreement is a contract between a union and an employer that typically forbids employers from communicating with employees about the unionization effort or the union behind it. This includes not discussing with workers the viability of any promises the union makes, the accuracy of information provided by the union, or details about the union’s record. Employers that sign neutrality agreements are even precluded from answering employees’ basic questions about how the bargaining process works. So in short, these deceptively named neutrality agreements are anything but. Employers are not actually asked to be neutral, but instead to leave employees in the dark about the choice they face.
Ford CEO says company will rethink where it builds vehicles after last year’s autoworkers strike
February 15, 2024 // Ford’s highly profitable factory in Louisville, Kentucky, was the first truck plant that the UAW shut down with a strike. “Our reliance on the UAW turned out to be we were the first truck plant to be shut down,” Farley told the conference. “Really our relationship has changed. It’s been a watershed moment for the company. Does this have business impact? Yes.”
Pro-Worker, Not Pro-Union
January 31, 2024 // What the Right has often overlooked in this debate is that the protection of independent-worker status can be coupled with a revamping of worker-benefit options. Lack of benefits is frequently cited as the main drawback of independent work. Republicans could burnish their pro-worker credentials, while protecting businesses from reclassification and other draconian left-wing policies, by proposing a flexible benefit setup for contractors and gig workers that has features similar to a SEP-IRA. It would use a system of employer contributions while giving workers the ability to make pre-tax contributions of their own. The funds could be used for benefits such as paid sick leave, unemployment insurance, or even health insurance, some of which could be purchased through newly created worker-benefit exchanges that act as brokerages for the benefits. Benefit-flexibility concepts can be applied as well to retirement savings, even those of noncontract workers. The current system largely relies on employer-based retirement plans, but many workers find it difficult to roll old retirement accounts over to new jobs. That has led to a proliferation of abandoned “orphan” accounts. Automatic portability for retirement accounts would make it possible for more workers to take their accounts with them to new jobs. Also due is a nuanced rethinking of noncompete agreements in labor contracts. While libertarian notions of the freedom of contract have long led right-leaning policy-makers to resist the imposition of restrictions on contractual arrangements, recent years have seen more free-market proponents question the efficacy of noncompetes with respect to their impact on worker freedom and earnings.
Dem Demands On Automakers Could Backfire On Their Own Climate Agenda And Americans’ Wallets, Experts Say
January 17, 2024 // “EV cars require fewer workers to build,” Higgins told the DCNF, noting that greater union membership in the auto industry is probably not possible with a corresponding transition to EVs. “That’s just a fact. But that may not matter as much as you might think to the UAW. Believe it or not, only about 150,000 of the UAW’s 400,000 or so members actually work for Detroit automakers. The union has branched out into other areas, such as education, and those areas are growing… So fewer auto workers will hurt the union but not kill it.”