Amazon, JPMorgan, Berkshire Hathaway team up to lower healthcare costs for their workers — and maybe everyone

From today’s LA Times:

Three of the nation’s most formidable companies — Amazon.com, Berkshire Hathaway Inc. and JPMorgan Chase & Co. — sent shock waves through the healthcare industry Tuesday by announcing a joint plan to reduce healthcare costs for their U.S. employees.

Although the companies said their focus mainly would be on providing improved healthcare for their own U.S. workers, which total nearly 1 million, the move immediately triggered speculation that any solutions they develop could spread throughout the industry.

That sent healthcare, drug and health-insurance stocks tumbling even though the three companies provided few initial details about their venture, with investors guessing that the trio’s initiative eventually could crimp sales growth and profits for others in the healthcare field.

Consumers might see a benefit if the companies could develop a blueprint for curbing the surge in healthcare and drug costs while maintaining or enhancing patient care, a scenario that government and the industry so far have struggled to achieve.

The speculation of a disruption to the industry was fueled by the stature of the three companies’ billionaire chief executives: Amazon’s Jeff Bezos, who already has radically changed the retail industry; Warren Buffett, the famed investor who also oversees dozens of companies under Berkshire’s umbrella; and Jamie Dimon, whose JPMorgan Chase is the nation’s largest bank with $2.5 trillion in assets.

Bezos and Buffett also are two of the nation’s richest people, with net worths of $119 billion and $92 billion, respectively, while Dimon’s net worth is just over $1 billion, according to Forbes.

The three said they would start “an independent company that is free from profit-making incentives and constraints” and that its early focus “will be on technology solutions” that would provide “simplified, high-quality and transparent healthcare at a reasonable cost.”

Read the complete article here.

Salaried or Hourly? The Gaps in Family Friendly Policies Begin to Close

From the New York Times:

More large companies like Starbucks and Walmart are starting to see the value in paid leave and other benefits for parents, including hourly workers, though big disparities remain.

As the labor market tightens, employers have been competing for highly educated workers by trying to make it easier for them to do their jobs and also have families — benefits like egg freezing or reduced schedules for new parents.

Now, some employers are beginning to address the same challenge for lower-wage workers, starting with paid family leave.

On Wednesday, Starbucks announced raises and stock grants for all employees in the United States, along with new benefits aimed specifically at workers with family caregiving responsibilities: paid time off to care for sick family members and paid paternity leave for hourly employees.

It followed the announcement by Walmart this month that it was raising pay and adding family-friendly benefits. It gave full-time hourly workers the same paid parental leave as salaried ones and said it would help pay for adoptions, including for hourly workers.

Read the complete article here.

 

LA Times journalists vote to unionize

From today’s LA Times:

Journalists at the Los Angeles Times have overwhelmingly elected to form a union, a first for the 136-year-old news organization that for much of its history was known for its opposition to organized labor.

The union drive was launched publicly in October and culminated in an election earlier this month. Results, tallied Friday by the National Labor Relations Board, show workers voted 248 to 44 to be represented by the Washington, D.C.-based NewsGuild-Communications Workers of America.

“We respect the outcome of the election and look forward to productive conversations with union leadership as we move forward,” said Marisa Kollias, spokeswoman for Tronc Inc., The Times’ parent. “We remain committed to ensuring that the Los Angeles Times is a leading source for news and information and to producing the award-winning journalism our readers rely on.”

Guild organizer Kristina Bui, a copy editor at The Times, said: “This was a long time coming, and we’re all thrilled that this has finally happened. The newsroom has put up with so much disruption and mismanagement, and this vote just underscores how much of a say we need to have in the decision-making process. The newsroom is demanding a seat at the bargaining table.”

Read the complete article here.

MLK Day 2018, A Time to Reflect on Socio-Economic Injustice In All Forms

In honor of MLK Day, we post a short educational video here with excerpts from Martin Luther King, Jr. and James Baldwin that draw the connection between racial injustice and economic inequality in the United States. Their insights are as true today as they were fifty years ago, showing just how far we’ve come and how far we have to go. If we want peace, we must work for justice in all its forms.

KY Gets OK To Require Work From Medicaid Recipients, Most Already Do

From National Public Radio:

Poor residents in Kentucky will have to work or do volunteer work if they want to keep their Medicaid benefits after the Trump administration on Friday approved the state’s request to add the requirements to its Medicaid program.

The new requirements apply only to “able-bodied” adults who get their health insurance through Medicaid, the federal-state health insurance program for the poor. People with disabilities, children, pregnant women and the elderly are exempt from the requirement.

“Kentucky is leading the nation in this reform in ways that are now being replicated all over the nation,” said Kentucky Governor Matt Bevin, in announcing the plan’s approval.

Kentucky’s program was approved a day after the federal Centers for Medicare and Medicaid Services announced it would look favorably on proposals from state to require poor Medicaid beneficiaries to work, go to school, get job training or do volunteer work to earn health coverage.

Nine other states — Arizona, Arkansas, Indiana, Kansas, Maine, New Hampshire, North Carolina, Utah and Wisconsin — have asked CMS to allow them to add “community engagement” requirements to their Medicaid programs.

CMS Administrator Seema Verma says the work requirement option is designed improve people’s financial status and health outcomes.

In addition to the work requirement, some of Kentucky’s Medicaid beneficiaries will have to begin paying premiums for their coverage and will have to meet certain milestones to earn dental and vision care.

Before Verma joined CMS she was a private consultant and an architect of the Kentucky plan that was approved Friday.

It’s not clear how many people would be affected by the new rules in Kentucky and elsewhere.

study by the Kaiser Family Foundation found that about 60 percent of “able-bodied” Medicaid beneficiaries already work. And a third of those who don’t have jobs say it’s because they are ill or disabled.

Strategies to Manage Your Career: From Networking to Balancing Work and Life

From the New York Times Business Section:

There is no shortage of books claiming to reveal the secret truth behind successful careers. Then there are all the podcasts, TED talks, late-night motivational speakers and your relatives’ sage advice. The bottom line of most of these advice-givers? A successful career requires managing the person in the mirror – overcoming your tendencies and habits that can undermine efforts to find happiness at work. Read on to see what professors and researchers suggest for managing different situations, whether you want to improve your situation at work, if you suspect changes are coming down, or if you are making a go of it in the gig economy.

Build a Strong Foundation

There are some key fundamentals of building a successful career that you should be aware of whether you are just starting out, or are closing in on retirement.

There are some key fundamentals of building a successful career, whether you are just starting out, or are closing in on retirement. And they apply to all walks of life – if you are a butcher, a baker or a computer systems analyst.

Fair warning, the following tried-and-true strategies will have little impact on what you do every day. They will not necessarily help you meet an assignment due by Friday morning, or complete a to-do list.

Instead, they are foundations that will give you a solid base on which to build a successful career that can withstand unexpected changes. These ideas will also help you put work and career in proper perspective, because there is a lot more to life beyond the daily grind.

The Value of Networking

There’s no getting around it: Networking has an awful reputation. It conjures up images of self-absorbed corporate ladder-climbers whose main interest is, “What’s in it for me?”

But there is almost unanimous agreement among researchers that building and nurturing relationships with people — current and former colleagues and people we respect in the business — provides a strong medium for a vibrant career and a cushion for when the unplanned happens.

Read the complete article here.

LA Times Newsroom Votes on Whether to Unionize, Tronc tries to suppress it

Here is an object lesson in why workers at the LA Times newsroom voted to unionize. Below is the “story” that appears in the LA Times about this historically significant event, in a time of digital transformation, job displacement, and mismanagement of news sources. The second article below is from the New York Times, and provides extensive coverage of both the background and context of yesterday’s vote by LA Times reporters. No wonder they are making a serious effort to unionize—their own management apparently wouldn’t even let them cover their own important story. Shame on Tronc for this selective editorial heavy-handedness.

From the Los Angeles Times:

Newsroom employees of the Los Angeles Times voted Thursday on whether to form a union.

Employees began casting ballots at 10 a.m. at The Times’ offices in downtown Los Angeles and Fountain Valley in an election held by the National Labor Relations Board. Those who work outside those offices were to able vote by mail.

Election results are expected to be announced Jan. 19. If a simple majority votes for the union, nearly 400 journalists would be represented.

A group of more than 40 Times journalists launched efforts last year to have the NewsGuild-Communications Workers of America represent employees in collective bargaining.

Organizers are calling for regular raises as well as improved benefits and job protections. The management of The Times had urged employees to vote no, arguing a union would not benefit employees.

From the New York Times:

Newsroom employees at The Los Angeles Times began casting ballots Thursday on whether to form a union, in what they believe is the first time journalists have held a union vote in the newspaper’s 136-year history.

Workers — who are calling for more competitive salaries, equitable pay for women and minorities, more generous benefits and improved working conditions — began voting at 10 a.m. in a first-floor community room at The Times headquarters in downtown Los Angeles and at the company’s offices in Orange County. Those who work remotely or who are on assignment will be able to vote using mail-in ballots.

A tally of the vote is expected to be announced on Jan. 19; forming a union requires a simple majority of votes cast.

The unit would include roughly 380 employees. People familiar with the process said they believed the organizing effort had the votes to join the NewsGuild, which represents 25,000 reporters, editors, photojournalists and other media workers at news organizations across the United States.

The union vote affirms something of a shift at The Times, where a bombing by union organizers in 1910 helped shape a historically anti-union stance. The organizing effort has also exacerbated tensions between newsroom employees and the newspaper’s executives.

Times employees, who have seen repeated management and ownership turmoil over the years, have long expressed skepticism over their top leaders, but a wave of recent changes further strained their relationship.

Over the last several months, Tronc, the Times’s Chicago-based corporate parent, installed a new publisher, Ross Levinsohn, and editor in chief, Lewis D’Vorkin, who has vowed a “digital transformation” that has left some in the newsroom anxious. A dispute between The Times and the Walt Disney Company also raised tensions between the paper’s employees and its new top management, with some employees questioning how Mr. D’Vorkin had handled the paper’s response.

Management typically counters efforts to organize employees, but many in The Times newsroom — especially against the backdrop of already tense relations — said they felt that those in charge have been unduly aggressive in the attempt to thwart the union effort.

Read the complete article here.

Robots Are Coming, and Sweden Is Fine

From New York Times:

From inside the control room carved into the rock more than half a mile underground, Mika Persson can see the robots on the march, supposedly coming for his job here at the New Boliden mine.

He’s fine with it.

Sweden’s famously generous social welfare system makes this a place not prone to fretting about automation — or much else, for that matter.

Mr. Persson, 35, sits in front of four computer screens, one displaying the loader he steers as it lifts freshly blasted rock containing silver, zinc and lead. If he were down in the mine shaft operating the loader manually, he would be inhaling dust and exhaust fumes. Instead, he reclines in an office chair while using a joystick to control the machine.

He is cognizant that robots are evolving by the day. Boliden is testing self-driving vehicles to replace truck drivers. But Mr. Persson assumes people will always be needed to keep the machines running. He has faith in the Swedish economic model and its protections against the torment of joblessness.

“I’m not really worried,” he says. “There are so many jobs in this mine that even if this job disappears, they will have another one. The company will take care of us.”

In much of the world, people whose livelihoods depend on paychecks are increasingly anxious about a potential wave of unemployment threatened by automation. As the frightening tale goes, globalization forced people in wealthier lands like North America and Europe to compete directly with cheaper laborers in Asia and Latin America, sowing joblessness. Now, the robots are coming to finish off the humans.

Read the complete article here.

Automation Could Displace 800 Million Workers Worldwide By 2030, Study Says

From today’s National Public Radio:

A coming wave of job automation could force between 400 million and 800 million people worldwide out of a job in the next 13 years, according to a new study.

A report released this week from the research arm of the consulting firm McKinsey & Company forecasts scenarios in which 3 percent to 14 percent of workers around the world — in 75 million to 375 million jobs — will have to acquire new skills and switch occupations by 2030.

“There are few precedents” to the challenge of retraining hundreds of millions of workers in the middle of their careers, the report’s authors say.

The impact will vary between countries, depending on their wealth and types of jobs that currently exist in each. In 60 percent of jobs worldwide, “at least one-third of the constituent activities could be automated,” McKinsey says, which would mean a big change in what people do day-to-day.

McKinsey looked at 46 countries and more than 800 different jobs in its research.

In the year 2030 in countries with “advanced economies,” a greater proportion of workers will need to learn new skills than in developing economies, researchers say. As many as a third of workers in the U.S. and Germany could need to learn new skills. For Japan, the number is almost 50 percent of the workforce, while in China it’s 12 percent.

Jobs that involve predictable, repetitive tasks are more easily automated, “such as operating machinery and preparing fast food,” and data processing, like paralegal work and accounting. However, McKinsey estimates less than 5 percent of jobs can be fully automated.

Jobs that pay “relatively lower wages” and aren’t as predictable are less likely to face full automation, because businesses don’t have as much incentive to spend on the technology. This applies to jobs like gardening, plumbing and child care, according to the authors.

Occupations that pay more but involve managing people and social interactions face less risk of automation due to the inherent difficulty in programming machines to do those types of tasks.

Read the complete article here.

Labor Board Reverses Ruling That Helped Workers Fight Large Chains

From today’s New York Times:

The National Labor Relations Board on Thursday overturned a key Obama-era precedent that had given workers significant leverage in challenging companies like fast-food and hotel chains over labor practices.

The ruling changes the standard for holding a company responsible for labor law violations that occur at another company, like a contractor or franchisee, with which it has a relationship.

The doctrine also governs whether such a corporation would have to bargain with workers at a franchise if they unionized, or whether only the owners of the franchise would have to do so.

While most labor law experts expected the labor board, which gained a Republican majority only in late September, to overturn the board’s so-called joint-employer decision from 2015, the speed of the change came as a surprise to many.

“Frankly, it’s shocking,” said Wilma B. Liebman, a former Democratic appointee on the board who once served as its chairwoman.

The board’s 3-to-2 vote, along party lines, restores the pre-2015 standard, which deemed a fast-food corporation a joint employer only if it exercised direct and immediate control over workers at the franchise, and in a way that was not limited.

Employer groups had been agitating to undo the standard that was set under President Barack Obama almost from the moment it was decided, and they applauded the decision on Thursday.

The key question in determining whether a company, like a fast-food corporation, is a joint employer of workers employed by another company, like one of the chain’s franchisees, is the degree of control exercised by the corporation over workers at the franchise. The ruling on Thursday declared that such control must be direct.

Under the Obama-era doctrine, the fast-food corporation could be held liable for labor violations that occurred at the franchise even if the control it exerted was indirect — for example, if it required the franchisee to use software dictating certain scheduling practices — or if it had the right to exercise control over workers that it nonetheless didn’t exercise.

The reversal could have important implications for the ability of workers to win concessions from employers through collective bargaining. In many cases, a contractor or franchisee has such low profit margins that it could not afford to raise wages or improve benefits even if it wanted to.

Read the complete article here.