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North American Edition
29th April 2024
 
THE HOT STORY
Increase in sworn officers reported in U.S. police departments
U.S. police departments have reported a year-over-year increase in sworn officers for the first time since the COVID-19 pandemic and the police killing of George Floyd. According to a survey by the Police Executive Research Forum, more officers were hired in 2023 than in any of the previous four years, and fewer officers resigned or retired. However, large departments are still below their staffing levels from January 2020. Many departments are struggling to attract and retain officers, despite offering incentives such as higher pay and signing bonuses. Changes in application requirements and hiring processes are being considered, but lowering standards is not supported. The survey also showed a decrease in resignations and retirements, attributed partly to a shift in public officials' views on public safety departments.
WORKFORCE
Deal reached to boost air traffic controller staffing
U.S. House and Senate negotiators have reached a deal to increase air traffic controller staffing and funding to help prevent runway close call incidents. However, the retirement age for airline pilots will not be raised from 65 to 67. The House of Representatives previously voted in favor of raising the retirement age, but the Senate Commerce Committee rejected the proposal. Congress is working on a new $105bn, five-year deal for the Federal Aviation Administration (FAA). The Senate is expected to vote on the proposal this week. 
LEGAL
Vancouver loses legal battle over firefighters' sick days
The City of Vancouver has lost a legal battle over paying firefighters sick days. British Columbia's Labour Relations Board (LRB) dismissed the city's application to review an arbitrator's decision that found Vancouver had denied firefighters required sick leave. The city is reviewing the LRB decision and has until April 30 to appeal. The legal battle began when IAFF Local 18 filed a grievance in 2022, arguing that the city had broken provincial law. The arbitrator's decision stated that the city violated the Employment Standards Act and ordered it to pay firefighters for any sick leave taken after April 2022. The B.C. Court of Appeal dismissed the city's attempt to overturn the decision. "It's been a challenging process," said Lee Lax, vice-president of IAFF Local 18. "We remain hopeful that, like all employees in British Columbia, we will continue to have access to employer-paid sick days as prescribed in the Employment Standards Act."
Starbucks meets with union for contract negotiations
Starbucks has held contract talks with the Workers United union, the parties announced on Friday, with further meetings planned for next month. "We discussed a broad range of topics, including . . . details relating to the union's representation of partners as both sides worked on the foundational framework that will contribute to single-store contract negotiations and ratification," they said in a joint statement. It is hoped that the negotiations will lead to a "foundational framework" to guide union organizing and collective bargaining across the country.
Google fires more employees over Nimbus contract
Google has fired more activist employees following the termination of workers who occupied company offices to protest a contract with the Israeli government. The second round of terminations came after Google struggled to identify employees who concealed their identity. No Tech for Apartheid claimed that a total of 50 workers had been fired. Google confirmed that every terminated employee was involved in disruptive activity. No Tech for Apartheid said it will continue organizing against the Nimbus contract. Google had previously stated that the protests were part of a campaign by organizations and people who largely don't work at Google.
Customers Bancorp CFO departs by mutual agreement
Customers Bancorp has announced that the departure of CFO Carla Leibold was by mutual agreement, contradicting an earlier statement that she was terminated for violating company policy. Leibold disputed the characterization of her separation. As part of the agreement, Leibold will receive $2.5m in compensation paid in installments over two years. She also forfeited her unvested equity awards.
STRATEGY
Textron to cut 1,500 jobs as army program cancellations and lower demand impact business
Textron is expanding its restructuring plan and cutting 1,500 jobs due to U.S. Army program cancellations and decreased demand for its products. The company's shares fell 10% in premarket trading as it reported lower-than-expected profit and revenue for the first quarter. Textron's industrial segment experienced a decline in quarterly revenue, with reduced consumer demand for certain products and decreased demand for fuel systems from European automotive manufacturers. The expanded restructuring plan includes a 4% reduction in the company's global workforce. Textron has incurred $140m in pre-tax special charges since introducing the restructuring plan and expects additional severance costs in the second quarter of 2024. The company's first-quarter sales were below Wall Street estimates.
INTERNATIONAL
Australian supermarket giant fined for underpaying workers' long service leave
Australia's largest supermarket chain, Woolworths, has been fined A$1.2m for failing to pay its Victorian employees their correct long service leave entitlements. The company pleaded guilty to 1227 charges of breaching the Long Service Leave Act. Woolworths attributed the issue to a "human error" during an 18-month period of updating its payroll systems. The underpayments, which affected thousands of current and former staff, were self-reported by Woolworths after an internal review. The court heard that 1227 former employees were underpaid between A$250 and A$12,000, and totaling over A$1m. Magistrate Nahrain Warda fined Woolworths A$1.207m and its subsidiary Woolstar A$36,000, emphasizing the importance of protecting employee entitlements. No conviction was recorded. Woolworths has apologised, implemented a repayment process with interest, and cooperated throughout the investigation.
Germany's unemployment expected to rise to highest level in almost a decade
Germany's economic weakness is expected to lead to a surge in unemployment, reaching the highest level in almost a decade, according to a study by the German Economic Institute (IW). The study reveals that unemployment will average just under 2.8m this year, the highest since 2015. However, it is still below the peak in 2005 when almost 4.9m people were unemployed. Companies' employment plans do not indicate any growth for the rest of the year, with the number of newly registered vacancies falling to its lowest level in five years. Germany's unemployment rate is projected to rise to 6% this year. Despite the economic downturn, the number of employed individuals rose by 340,000, attributed to labor hoarding. However, as the period of weakness extends, staffing levels may need to be adjusted, impacting companies' competitiveness.
Brazilian Supreme Court suspends law extending tax exemptions
A Brazilian Supreme Court justice has temporarily suspended a law extending payroll tax exemptions for 17 sectors of the economy. President Luiz Inacio Lula da Silva vetoed the bill passed by Congress, but lawmakers later voted to block his veto. The Lula administration requested that the top court declare the law unconstitutional. The suspension of parts of the law will be valid until the financial impact is made clear by Congress or until the Supreme Court reaches a final rule on the matter. The tax exemption extension reduces Brazil's tax income by an estimated $1.9bn per year. Brazil's Senate head Rodrigo Pacheco criticized the government for taking the matter to courts and said he would convene Senate leaders, lawyers, and consultants to discuss the issue.
World Day for Safety and Health at Work promotes occupational health
The international community observed World Day for Safety and Health at Work on Sunday to raise awareness of occupational health and safety issues. Work-related diseases and injuries caused 1.88 million deaths in 2016, with the South-East Asia Region facing a particularly high burden of work-related mortality. Climate change and mental health issues in the workplace were also highlighted as concerns. Salma Wazed, WHO Regional Director for South-East Asia, emphasized the need for partnerships and collaboration to ensure better occupational health and safety.
OTHER
Domino's to tip customers who tip delivery drivers
Domino's is launching a promotion today that rewards customers who tip $3 or more per order with a $3 coupon good for their next order, as long as that order takes place the following week. “These days, everywhere you go, there’s a tip screen,” said Kate Trumbull, Domino’s senior vice president and chief brand officer in a statement. “The pressure to tip is real, even when no extra service is provided. So, we decided to flip the script and show our appreciation by tipping customers back.”
 


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