Posts tagged recession
Google Axes 12,000 Jobs As Big Tech Layoffs Continue
January 25, 2023 // The Google layoffs follow heavy jobs cuts at Facebook parent company Meta, Amazon, Microsoft, Salesforce and numerous other firms as higher interest rates and fears of a recession hammer the tech sector. According to an analysis conducted earlier this week by The Standard, tech companies have laid off roughly 90,000 workers in the last year and more than 12,000 workers in San Francisco during this month alone. Those layoffs span major local employers such as Salesforce and a smattering of smaller startups.
Tech Layoffs Threaten Unions’ Plan to Draw White-Collar Workers
January 18, 2023 // Some 500 technology companies have axed nearly 100,000 workers since last October, according to Layoffs.fyi, a public database of tech layoffs. Amazon this month announced it would cut 18,000 jobs, and on the same day, cloud computing company Salesforce and the online video-sharing service Vimeo said they would slash 10% and 11% of their staffs, respectively. Meta, formerly known as Facebook, said in November it would eliminate 11,000 jobs—about 13% of its staff. Those reductions in force don’t bode well for unions that have increasingly funneled resources into tech organizing, which was, until recently, seen as an ever-growing pool of potential members. The AFL-CIO, the nation’s largest labor federation, last year raised membership fees for the first time in two decades, hoping to raise $10 million a year for new organizing. Union leaders this month flocked to Las Vegas for the CES technology conference, set on understanding how the latest innovations in artificial intelligence could disrupt their industries.
Gavin Newsom expects a deficit this year. What does that mean for state worker contracts?
January 13, 2023 // High inflation would usually be a strong argument for raising pay. But budget deficits typically call for cuts in public spending, not increases. State employers face a tough decision. Some public employees are paid under the market rate for their roles and could leave for the private sector if raises are withheld. Public employee unions are also struggling with retention, which could worsen if a recession hits and older workers retire faster than departments can hire new ones.
The Standoff Between Workers and Their Bosses Is Set To Heat Up in 2023
December 15, 2022 // Now, the strong labor market that emboldened workers is softening. The unemployment rate ticked up to 3.7% in November—it had gone as low as 3.5%—–and high-profile tech and media companies have recently cut their payrolls through steep layoffs. But that doesn’t mean workers are losing the upper hand, says Thomas Kochan, a professor of employment research at the MIT Sloan School for Management. If anything, the current economic conditions mean labor strife may accelerate next year. “I expect what we’ll see is more conflict, more strikes, and more contract rejections,” Kochan says. Workers are still focused on companies’ profits during boom years, he notes, while companies are starting to trim costs to prepare for an economic downturn. “It’s that difference in expectations,” he says, “that creates a higher probability of conflicts and strikes.”
NY POST Opinion: Union Joe suddenly turns into Union-Buster-in-Chief — to save himself
December 1, 2022 // With Americans already facing Bidenflation and a potentially painful recession, a rail strike would utterly slam the nation’s economy — and his legacy. “I am calling on Congress to pass legislation immediately to adopt the Tentative Agreement [reached in September by] railroad workers and operators,” Biden said Monday, insisting no “path to resolve the dispute at the bargaining table” exists. Hmm. Just this year he was backing unionization of Amazon workers, warning, “Amazon, here we come. Watch.” Last year, too, he pushed unionization drives and praised organized labor for winning workers better terms. His proposed Protecting the Right to Organize Act and American Jobs Plan aimed to unionize practically the entire US workforce (by nixing states’ right-to-work laws, for example).
United To Accelerate Pilot Salary Increases Amid Contract Negotiations
November 15, 2022 // United's move comes two weeks after a contract offering a 15% pay raise over 18 months was shot down by the pilot's union with 94% support. Despite reaching an agreement in principle in May, talks fell through a few months later and both sides were back on the negotiating table in the fall. With the latest deal falling through, United's pilots plan to picket to force more concessions.
The Monopoly Hiding in Plain Sight
October 19, 2022 // Imagine if unions were connected to workers rather than workplaces. They could provide a better safety net for those between jobs. Health insurance, unemployment insurance, and professional development could be provided by unions or employment co-ops, rather than by employers, which would make economic downturns less risky for workers. Tying these services to your employer is the equivalent of putting all your eggs in a basket that someone else is carrying. The measure of a union should be how well it serves its members. If workers had the freedom to join the union of their choice, worker organizations would be motivated to constantly find new and better ways of serving their customers. This is a bipartisan compromise that could both improve the labor market and reverse unions’ multi-decade decline.
Should Union-Backed Fraud Be Legal?
October 11, 2022 // Last week, the Ninth U.S. Circuit Court of Appeals issued rulings in cases brought by the Freedom Foundation alleging that government unions forged public employees’ signatures on membership agreements in order to continue deducting dues from their pay. Perhaps the most egregious of the decisions is found in Zielinski v. SEIU 503, in which SEIU forged Mr. Zielinski’s signature twice on two separate dues authorizations. These decisions essentially authorize government-employee unions to ignore the U.S. Supreme Court’s landmark 2018 ruling in Janus v. AFSCME by engaging in state-sanctioned fraud.
The dark side of remote work shows it’s not as great as it appears
October 10, 2022 // More than half (55%) of remote employees are highly anxious about their finances, according to a recent survey conducted by MetLife, which interviewed 1,000 full-time workers. That’s more than fully in-person or hybrid employees, 46% of whom feel similarly. For remote workers, the stress is becoming too much to handle. A slight majority (53%) predicted they’ll be at a financial “breaking point” soon. Only 41% of hybrid and in-person workers say the same. Part of the issue is benefit selection, when employees are deciding headache-inducing things like how much to contribute to their 401(k) plan and what health insurance plan has the best deductible. MetLife found that remote workers spend more time stressing about their benefits than their on-site or hybrid peers.
MCMAHON: On Labor Day, The Data Shows The Struggles Of Our Country’s Small Businesses And Workers
September 7, 2022 // Research from Alignable shows that 40% of small businesses could not pay their rent in August, and the most affected sectors are agriculture, automotive, restaurants, and education. And when you ask these small businesses if they think things will improve, research from CNBC Small Business Index demonstrates that 77% will tell you that they expect inflation to get worse, while 57% believe we are already in a recession.