Market Update: Why Rising Wages Are Scaring the Hell Out of Stock Investors

From today’s Slate Magazine:

On Friday, the U.S. Department of Labor released a strong jobs report showing wages rising at their fastest rate since the Great Recession. Then, the stock market promptly began to plummet. The Dow Jones fell an amusingly on-the-nose 666 points—its worst day since the U.K.’s Brexit surprise. Global markets subsequently took a beating, and U.S. equities are still sliding as I write this today.

Why is good news for workers turning into bad news for shareholders? The answer is a useful illustration of why the stock market is often a poor guide to the overall health of the economy.

Right now, traders seem to be worried that if wages rise too fast, it will cause the Federal Reserve to hike interest rates in order to head off inflation down the road. When, earlier this year, the central bank suggested that it would raise rates, much of the market was skeptical, in part because inflation has been so subdued for so long. But faster pay gains for workers make it more likely the Fed will follow through, both because rising wages are a sign that the whole economy is heating up and because employers will eventually have to raise prices to keep up with the cost of labor.

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.

 

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.

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.

Icelandic Companies Required By Law to Show They Pay Men, Women Fairly

From today’s National Public Radio:

Starting this week, companies in Iceland are required to demonstrate that they pay male and female employees fairly — without gender discrimination. Failing to do so can result in daily fines.

The law, which was passed last year and went into effect on Monday, is believed to be the first of its kind in the world and covers both the private and public sectors.

Proposals Aim To Combat Discrimination Based On Salary History

Some headlines have claimed that the new law makes it illegal to pay men more than women. That is not exactly what happened. In Iceland — as in many countries, including the U.S. — it was already illegal to pay men and women differently on the basis of their gender. (And, to be clear, it was and is legal to pay a man more than a woman, or vice versa, provided there is a valid reason.)

What is remarkable about the new law in Iceland is how it enforces equal pay standards. It does not rely on an employee to prove she was discriminated against. Instead, the burden is on companies to prove that their pay practices are fair.

The policy change comes after years of discussion and pilot testing, based on frustration with the fact that several gender-equity laws were not budging the actual pay gap.

Iceland has the best track record on gender equality in the world, according to the World Economic Forum. But the country still had a persistent pay gap just over 16 percent as of last year. The gap exists across all occupational groups. According to the Nordic Labour Journal, figures from 2010 showed about 8 percent of that year’s gap remained “unexplained” after factoring in possible justifications.

Iceland’s new law applies to companies with 25 employees or more. Every three years, the companies will need to confirm that they are paying men and women equally for jobs of equal value. If they aren’t certified, a daily fine will stack up.

Read the complete article here.

Proof Retail Jobs Don’t Need to Be Bad

From today’s New York Times by Eduardo Porter

Bethamy Magrow is grateful that the minimum wage in New York City is rising to $13 at the end of next month. Earning the current minimum of $11 an hour at a Times Square fashion retailer and scheduled to work some weeks for only 19 hours, the 25-year-old sales worker realizes she doesn’t quite clear New York’s poverty line.

It would be nice if her schedule didn’t change so much from week to week, she told me, so she could set up her doctors’ appointments in advance. But at least New York bars retailers from changing the schedule from one day to the next. In any case, jobs she has had at Whole Foods and Pokéworks, a restaurant on Union Square, were no better or worse.

Millions of Americans have similar stories to tell. For all the talk about the “end of retail,” it is one of the largest employers in the country, accounting for about one in eight workers in the private sector. For every miner toiling in the United States, there are almost 25 retail workers. Manufacturing, the apple of President Trump’s eye, doesn’t employ nearly as many.

Typically paying full-time employees less than $33,000 a year, well below the midpoint across the economy, retail jobs have become the work of the lower class, the main source of support for Americans left behind by economic change.

This raises a fairly urgent question: If retail work sets the living standard for so many low-income families, why doesn’t it get more attention?

Read the entire article here.

Employees do want their job to matter, but meaning at work can be hard to find

From today’s Chicago Tribune by Alexia Elejalde-Ruiz:

Jennifer Ruiz holds her patient’s trembling hand as she presses a stethoscope to the frail woman’s chest and belly. She compliments the woman on her recently painted fingernails. She cheerfully asks how she’s feeling, knowing she’ll get no answer from the little curled body in the big hospital bed but for a penetrating stare.

Ruiz, a hospice nurse, finds her work deeply meaningful, in part for reasons that are obvious: “We get to be there for people during some of the most tragic and tough times in their lives,” she said.

But even those who shepherd the dying and their families through the fear, heartbreak and mystery of the end of life can lose sight of a job’s meaning in the stress of the day-to-day, if their employer doesn’t foster it.

“You have to fan that flame,” said Brenda McGarvey, corporate director of program development at Skokie-based Unity Hospice, where Ruiz works. “It’s your responsibility.”

A job’s meaningfulness — a sense that the work has a broader purpose — is consistently and overwhelmingly ranked by employees as one of the most important factors driving job satisfaction. It’s the linchpin of qualities that make for a valuable employee: motivation, job performance and a desire to show up and stay.

Meaningful work needn’t be lofty. People find meaning picking up garbage, installing windows and selling electronics — if they connect with why it matters.

But many Chicago-area employers seem to be missing an opportunity to tap this critical vein.

In a survey conducted by Energage for the Chicago Tribune’s 2017 Top Workplaces magazine, local employees regarded their employers more positively than the national average on nearly all measures, but companies fell significantly short in response to this statement: “My job makes me feel like I am part of something meaningful.” Meaningfulness also was the only measure that did not see any improvement among Chicago-area respondents this year, compared with last.

Read the article here.

House GOP passes bill that rolls back “joint employer” protections for workers

From yesterday’s New York Times by Christine Owens:

House Republicans on Tuesday took another step in their campaign to cheat workers out of fair pay and workplace rights. On a vote largely along party lines, the House advanced a bill to roll back longstanding “joint employer” protections for workers contracted by big companies like Apple or Alaska Airlines.

For years, when two companies both control the terms and conditions of employment, they are also both considered responsible for workplace violations like wage theft, sexual harassment or safety problems. So if a window washer working for a contractor fell because safety equipment was improperly installed by the company whose building he was cleaning, he could sue both the contractor and the larger company for damages.

But under the bill passed on Tuesday, large corporations that outsource jobs would get virtually full immunity from workplace violations, while the typically smaller, poorly capitalized local businesses that provide the workers would bear all the liability. This could leave these small businesses exposed to bankruptcy, leaving workers in danger of having no remedies at all.

Contracting out work is not necessarily bad; it’s often a smart way for companies to efficiently handle certain tasks, like payroll administration and cleaning work.

But the problem is that many companies also contract out to lower compensation costs and, sometimes, to avoid basic legal responsibilities to workers. Even when such cost-cutting is not the top reason a company outsources, workers usually suffer.

Read the entire article here.

WeWork and the Death of Leisure

From today’s New York Times “Opinion” by Ginia Bellafante

This past week, Hudson’s Bay, whose story begins 347 years ago in the fur trade, making it the oldest company in North America, announced that it was selling Lord & Taylor’s flagship store, on Fifth Avenue, several years after it had acquired the department store chain through a deal with a private-equity firm.

The buyer would be WeWork, the office rental outfit very much rooted in the virtue-and-shell-game ethos of 21st-century capitalism. The founders Adam Neumann and Miguel McKelvey got together in a building on the Brooklyn waterfront where they both worked — Mr. Neumann as the proprietor of a company called Krawlers that produced padded clothes for babies — and quickly realized that they could make money from all the vacant space they saw around them by simulating the atmosphere of the Silicon Valley workplace, fueling the dreams of young entrepreneurs who always wanted to appear as if they were having fun. Over the summer, seven years into its existence, WeWork reached a $20 billion valuation.

On the face of it, the transformation of a department store — the first in the country to install an elevator — into the headquarters of a start-up is simply a story of the new economy cannibalizing the old. Traditional retail businesses have been in decline for a long time; the cult of shared goods and services enabled by technology is ever ascendant.

The first iteration of Lord & Taylor was a dry goods store on Catherine Street in Lower Manhattan that opened in 1826. The 676,000-square-foot Italianate building in Midtown it eventually occupied in 1914 (a building for which WeWork is now paying $850 million) stood not merely as a monument to turn-of-the-century commerce but also as the grand testament to what the sociologist Thorstein Veblen called the rising culture of “conspicuous leisure.”

Leisure, Veblen wrote, “does not connote indolence or quiescence.’’ What it conveys is the “nonproductive consumption of time,” by which he was not anticipating the 10,000 hours people would fritter away playing Minecraft, but any time spent away from the activity of labor. In their infancy and well into the first 80 years or so of the 20th century, department stores were largely places to pass the hours. When Lord & Taylor opened on Fifth Avenue and 38th Street it featured three dining rooms, a manicure parlor for men and a mechanical horse that could walk, trot or canter. Harry Gordon Selfridge, founder of Selfridges in London, dictated that “a store should be a social center.” To that end he installed an ice rink and shooting range on the roof of his store and exhibited the first plane to fly over the English Channel.

Read the entire article here.