John Deere says it’s pulling back on DE&I initiatives
Farm equipment maker, John Deere, has announced it will no longer sponsor “social or cultural awareness” events – a decision that sees it become the latest major US company to distance itself from diversity and inclusion measures after being targeted by conservative backlash. A statement made on X (formerly Twitter), said that it would audit all training materials: “to ensure the absence of socially-motivated messages” in compliance with federal and local laws. It added that “the existence of diversity quotas and pronoun identification have never been and are not company policy.” It follows a decision made a few weeks ago by rural retailer, Tractor Supply, to end an array of corporate diversity and climate efforts. Both announcements came after backlash piled up online from conservative activists opposed to diversity, equity and inclusion efforts, sponsorship of LGBTQ+ Pride events and climate advocacy. Eric Bloem, vice president of programs and corporate advocacy at the Human Rights Campaign, called John Deere’s announcement “disappointing” and “a direct result of a coordinated attack by far-right extremists on American business.” But it also follows on from HR organization Society for Human Resource Management last week announcing it would drop “equity” from its diversity and inclusion approach. “Effective immediately, SHRM will be adopting the acronym ‘I&D’ instead of ‘IE&D,” the group said in a statement posted on LinkedIn. “By emphasizing Inclusion-first, we aim to address the current shortcomings of DE&I programs, which have led to societal backlash and increasing polarization.”
Meta’s severance policies ruled illegal
The severance payments imposed by Meta during its mass layoff of 2022 have been declared illegal. According to administrative Law Judge Andrew Gollin of the National Labor Relations Board (NLRB), Meta’s severance agreements violated employee rights under the National Labor Relations Act (NLRA) by using “overly broad language” in non-disparagement and confidentiality sections. These could, he said, “interfere with, restrain, or coerce employees in the exercise of their rights.” In response to the violation, Gollin ordered Meta to remove the offending language from its severance agreements. The tech giant is also required to contact all of its former employees who signed these problematic agreements, informing them of the situation. Furthermore, added Gollin, Meta must post notices in workplaces about employees’ rights as granted by the NLRB. The ruling comes after approximately 7,511 ex-employees were presented with these agreements during Meta’s first mass layoff in November 2022. These clauses offered outgoing employees increased severance pay and additional post-employment benefits, provided they did not publicly discuss their work or any issues arising from their time at Meta or their termination.
Workday faces class-action for AI screening
A jobseeker who submitted more than 100 applications to Workday-listed postings has won the right to bring a class-action against the company, alleging that its AI software screened him out because he is black. Workday attempted to have the suit dismissed, alleging that its software is not an “employment agency” but a basic tool, and therefore not subject to human rights laws that govern employers. But US District Judge Rita Lin said on Friday that Workday can be considered an employer in the US, since its algorithm-based screening software makes decisions about which job applicants its clients should consider for employment, and which it shouldn’t. If the action goes ahead, the suit against Workday will be the first proposed class-action lawsuit to challenge the use of an AI screening program. The judge in the Workday case acknowledged that Workday’s software uses the company’s own data to train its screening algorithm, perpetuating any biases that may already exist. Alam added that the coders themselves may also be inadvertently adding more bias to the algorithms as they build the system.
Contractor pays $500,000 to settle age discrimination claim
A commercial contractor – Hatzel & Buehler – has agreed to settle a claim with the Equal Employment Opportunities Commission, over historic age discrimination. According to the EEOC, a third party recruiter was told that two applicants aged 65 and 58 were not chosen because they did not fit an “ideal age range.” It was reportedly heard that the company preferred people aged between 30-45. Hatzel & Buehler must now pay half a million dollars, and as part of the settlement. In addition to this, the vice president of the company (who made the initial comments), will henceforth be prohibited from making final decisions on which candidates to interview or hire for the affected positions, the EEOC said. “Job candidates should be evaluated based on their qualifications, not their age,” Debra Lawrence, regional attorney at EEOC’s Philadelphia office, said in the agency’s press release. “The EEOC will continue to hold employers accountable for age-discriminatory recruitment and hiring practices.” The case is one of several in which an employers’ alleged use of coded language became potential evidence in an age discrimination claim. In one 2023 example, the EEOC alleged that Exact Sciences discriminated against a 49-year-old applicant whom it claimed was turned down because the company sought “more junior” applicants. The company settled with EEOC for $90,000 but denied the commission’s allegations.
Disney workers vote to take strike action
Workers at Disneyland have overwhelmingly voted to authorize strike action, with the largest bargaining unit of Disney workers in California reporting that the vote of its members was 99% in favor of strike action. The result means that if meetings set up for this week do not progress, union leaders are then able to declare a strike. “We have given the company more than enough time to do the right thing,” the Bargaining Committee said in a statement. To members it said: “If Disney is not prepared to agree to the offer, we will move forward with the actions we need to take and that you have overwhelmingly voiced your support for.” Disneyland officials sought to stress that a strike authorization “is not unusual as part of a negotiations process,” and that “a strike has not been scheduled. The official Disneyland Park Master Services Council contract expired on June 16, with Master Services Council declining to enter into a contract extension. A statement from the Disney Workers Rising Bargaining Committee said: “Our goal for negotiations has always been to reach an agreement with Disney — one that provides cast members with wages they need to live in Southern California, the respect they deserve for the years they’ve dedicated to the company and an attendance policy that works for everyone while keeping park guests safe.” It added: “We won’t accept less than what we deserve because we know our value to Disney. The theme parks’ profits come from our hard work making a trip to Disneyland a magical experience for guests. By undermining our rights, Disney has only made harder our fight to help our guests and keep our parks safe.”
June employment data revealed
The US Bureau of Labor Statistics has this week published its much-anticipated ‘Employment Situation Summary Report’ – which details the main employment trends of the year so far, and its predictions for the rest of the year ahead. According to the data, total nonfarm payroll employment increased by 206,000 in June, and the unemployment rate changed little at 4.1 percent. Both the unemployment rate, at 4.1%, and the number of unemployed people, at 6.8 million, changed little in June. These measures are higher than a year earlier, when the jobless rate was 3.6% and the number of unemployed people was 6.0 million. The number of long-term unemployed (those jobless for 27 weeks or more) rose by 166,000 to 1.5 million in June. This measure is up from 1.1 million a year earlier. The long-term unemployed accounted for 22.2% of all unemployed people in June. On top of these absolute figures were its assessments of the four highest-growing sectors – which was topped by government (adding 70,000 positions in June 2024); followed by healthcare (49,000 new jobs in June), social assistance (34,000 new jobs) and construction (27,000). Altogether, these four industries added a collective 200,000 job vacancies this summer, significantly boosting the economy and reducing unemployment in these key areas. Employment in professional and business services changed little in June (-17,000), and has shown little change over the year. Temporary help services employment declined by 49,000 over the month and is down by 515,000 since reaching a peak in March 2022. Employment in professional, scientific, and technical services continued to trend up in June (+24,000).
Could payday be everyday?
Research by corporate payouts platform, and TimeForge, has revealed 70% of hourly employees would support same day pay. Findings of the research report –the 2024 Same Day Pay Survey – reveal that 74% of staff think about their finances at work, and are often distracted about cost of living pressures. The research, which surveyed more than 400 US-based, hourly employees, and 339 employers and managers, indicated help may be at hand though. It finds 73% of employers of hourly-paid staff plan to implement a same day pay solution in the future. Moreover, some 87% of employers believe their employees would be excited about not having to wait for a once-weekly or biweekly paydays to get paid. “For hourly workers experiencing the kind of financial stress that has become all too common in our post-pandemic economy, receiving daily pay could offer timely relief,” said Anthony Presley, CEO of TimeForge. Presley said same day pay solutions allow businesses to operate more efficiently while offering a competitive benefit — essential to attracting and retaining top talent.