Boeing workers reject pay deal
In a surprise turn of events, last week’s rumored pay deal (comprising a 25% pay increase over the next four years), between Boeing and its staff has been sensationally rejected. In a vote put to workers, a significant 95% of participating workers rejected the pay offer, with 96% supporting strike action. The beleaguered plane maker has responded to vote by saying strikes will “jeopardize our recovery in a significant way,” and in response, it said it would pause most employee travel perks and suspend all non-essential capital expenditures. According to The Guardian Brian West, Boeing’s chief financial officer, sent a memo to staff saying the company is now “considering the difficult step of temporary furloughs for many employees, managers and executives” over the coming weeks. He added: “Our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future.” On the day the pay offer was rejected, Boeing’s share price fell 1.3%. The action is expected to halt production of Boeing’s 737 Max, its bestselling jet.
Jury awards fired UPS worker $237 million
A UPS worker judged to have suffered persistent on-the-job discrimination and being subject to a hostile work environment has been awarded nearly a quarter of a billion dollars. Gratton, who is black, claimed he was frequently laid off in favor of white drivers with less seniority, was repeatedly called “boy” by a supervisor, and was given less-desirable routes and trucks than others. After making previous grievance filings in 2018, 2020 and in 2021, he was fired in 2021 following a sexual harassment allegation against him. The award – thought to be the largest of its kind to be awarded in Washington state – awarded Tahvio Gratton $39.6 million for emotional distress and another $198 million in punitive damages. Attorney Dustin Collier, one of the lawyers who represented Gratton, told Bloomberg News: “We thank the jury for seeing the truth, vindicating our client’s rights, and sending a powerful message to UPS that our communities will not tolerate racial discrimination, harassment, or retaliation against the victims of discrimination and harassment.” UPS attorneys say the case will be appealed. “We are disappointed with the jury’s decision, but respect the process and the deliberations of the jury,” said Glenn Zaccara, a spokesperson for UPS, who emailed a response to Bloomberg.
Waffle House employee shot dead by ‘agitated’ customer
A Waffle House employee in North Carolina has been fatally shot after serving a customer who became “agitated and verbally abusive” toward employees after placing his order. The employee – 18-year old Burlie Dawson Locklear – died of a gunshot injury after being rushed to Scotland Memorial Hospital. Reports suggest the suspect came to the Waffle House and ordered food, but while it was being prepared he became “more agitated and verbally abusive toward the employees,” according to police. He walked away from the restaurant after being given his food, but turned while walking to his car and fired two shots toward the Waffle House, striking Locklear, police said. The suspect then fled the scene. Police are still searching for the shooter, who police describe the as being a 5-foot-8 to 5-foot-10 black male with light skin, long dreads, facial hair including a beard and mustache. He was last seen wearing a dark blue hoodie, blue jeans and white shoes. “We are mourning the tragic death of one of our Waffle House Associates, who was the victim of an outrageous act of violence early this morning at our Laurinburg, NC restaurant,” Waffle House officials said in a statement to WBTW.
Verizon to cut headcount by nearly 5,000
US telecommunications giant, Verizon, has announced it will lay off around 5,000 employees as part of a reorganization and cost-cutting measure. The layoffs – which comprise around 4.5% of the total headcount of the company – are due to start immediately, with around half of the axed positions going this month, and the remainder happening in March 2025. The biggest US mobile carrier said it expects to spend around $1.9 billion buying staff out, and it says it hopes as many as possible will take advantage of the voluntary separation program this supports (which was introduced in June). Verizon layoffs have been implemented across various departments amid cost-cutting measures as part of an internal reorganization strategy. It was initially reported that 4,800 employees could go, although more recent reports suggest the figure is more likely to be 5,000 – or even slightly more. Verizon and its US telecommunications company peers have been spending heavily to bulk up on fiber-optic assets while growth in mobile subscribers slows. Last week Verizon agreed to pay $9.6 billion for Frontier Communications Parent, adding 2.2 million fiber subscribers across 25 states. The deal, valued at $20 billion including Frontier’s net debt, was the biggest for Verizon in more than a decade. The company is also exploring selling thousands of mobile-phone towers across the country to raise cash. A sale could bring in more than $3 billion, Bloomberg has reported.
US firms planning smaller pay rises next year
The twin trends of falling inflation, and falling demand for workers, means US employers are getting increasingly confident about offering smaller pay rises this year. Compared to the last few years, where average pay rises have been above 5%, consulting firm Gallagher said it expects wages across all industries to grow by an average 3.6% cent in 2025 – down from 4% this year. According to a report by The Financial Times, employers feel under less pressure to offer big raises to stop staff from quitting. It adds that US job openings in July fell to their lowest level in more than three years (at 7.7m), as demand for workers subsided. US employers also added fewer jobs than economists had expected in August. This all, commentators suggest, marks a significant turning in the balance of power between employers and employees. Employers gave large pay increases in 2022 and 2023 as they struggled to recruit and retain staff amid a global labour shortage spurred by the Covid-19 pandemic. Overall, wages have grown by an average of 23.3% since the start of the pandemic, outpacing the 21.2% rise in consumer prices. But companies have tried to slow the pace of pay increases ever since. Commenting on the data Johnny Taylor, chief executive of the Society for Human Resource Management, said: “If there is anything that is keeping human resources professionals up at night, it is how do you say to your superstar who has gotten 5-6% over the last few years that they are now going to get 2%?”
Capgemini opens its 11th Employee Share Ownership Plan…
Consulting giant, Capgemini, has launched it 11th Employee Share Ownership Plan (ESOP) – which enables 97% of staff to purchase shares in the company. It comes as the 2019 ESOP reaches its term at the end of the year. This 11th share plan endeavors to maintain the employee shareholding of the firm to around 8%. According to the planned schedule, the reservation period will be opened from September 12 to October 1, 2024 (inclusive) and will be followed by a subscription/revocation period from November 12 to November 14, 2024 (inclusive). The subscription price of the new shares will be set on November 7, 2024 and the capital increase will be completed on December 19, 2024. Employees will be able to subscribe to Capgemini shares within the framework of subscription leveraged and guaranteed formulas. These formulas will ensure that employees will be safeguarded against any potential loss during the period when the shares are non-tradable.
… as PwC announces first layoffs for 15 years
Accountancy firm, PwC is said to be laying off around 1,800 staff in the US – the first round of cuts since the credit crunch of 2009. The job cuts, affecting about 2.5% of the US workforce, span various roles, from associates to managing directors, and include the likes of business services, audit and tax. The cuts are primarily focused on the US advisory and products and technology operations, with about half of the affected employees based offshore. Until now, PwC had resisted making headcount cuts that several of its peers have recently had to make – including EY and KPMG. But Tim Grady, PwC’s US chief operating officer (COO), said: “To remain competitive and position our business for the future, we are continuing to transform areas of our firm and are aligning our workforce to better support our strategy.” The restructuring will see PwC’s products and technology teams more deeply integrated into individual business lines. The changes come as part of a broader structural overhaul initiated by Paul Griggs, who took over as US leader in May.