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Wellbeing initiatives – down; union membership – down; corporate greed – up

In the week that recognizes the American labor movement, there's no real cause for joy, according to our round-up of the top HR stories making the headlines:

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Sep 5, 2024
This article is part of a series called The Most Interesting HR Stories of the Week.

Workplace wellbeing down from its 2020 peak

Cast your minds back to 2020 – Covid-19 dominated everything, and so it was understandable that wellbeing took centre stage. But according to a new report from the Johns Hopkins Carey Business School, workplace wellbeing initiatives are substantially in decline, as employers scale back on the supportive, flexible work environments implemented during the pandemic. According to the research, which gathered data from more than 1.5 million individuals at more than 2,500 US organizations between 2019 and 2023, workplace wellbeing initiatives have regressed as workers have returned to the office. The research measured the key dimensions for fostering corporate climates of wellbeing, including mental and emotional support, sense of purpose, personal support, financial health, and meaningful connections. It found that ‘all’ surveyed industries experienced a downward trend, the healthcare, retail, and hospitality sectors recording the lowest levels of workplace wellbeing. Commenting on the data, Michelle Barton, a Carey Business School associate professor and co-author of the study, said: “The Covid-19 pandemic heightened employers’ awareness of the importance of wellbeing. The challenge now will be to integrate those practices into everyday work life, rather than simply as a crisis response.”

Union membership is not growing

To coincide with this week’s Labor Day, data from the US Bureau of Labor Statistics reveals that – despite gains in recent years – union membership is not growing. The data finds that around 10% of hourly and salaried workers were members of unions in 2023 – a figure that translates to around 14.4 million workers. However, this number is now at an all-time low, and down from the 10.1 million members recorded in 2022. By comparison, data from The Associated Press suggests 7.4 million workers are unionized – a figure that has remained at a constant 6% for some time now, because unionization rates have not kept pace with overall hiring. In public-sector jobs like teachers, police, and government workers, approximately 32.5% of workers are unionized. The stalling in actual union membership comes as approval of unions is at a high of 67% according to research from Gallup – up from 48% in 2009. However, there are signs that a revival in membership could be on the cards. The National Labor Relations Board reported 2,594 filings for union representation in its 2023 fiscal year, which ended Sept. 30. That was up 3% from 2022 and is the highest number of filings since the 2015 fiscal year.

CEOs of the lowest-paid workers focus on the short-term

In the week that saw Labor Day, a new report by the Institute for Policy Studies reveals that the CEOs of some of the largest employers with the lowest-paid workers in the US are more “focused on their own personal short-term windfall” – spending significantly more money on stock buybacks than capital investments and contributions to employee retirement plans. It found that the 100 largest low-wage employers in the US (between 2019-2023), spent $522bn on stock buybacks. Lowe’s and Home Depot spent the most on stock buybacks, with Lowe’s spending $42.6bn during this period and Home Depot spending $37.2bn. According to the report, Lowe’s could have used these same funds to give every one of its 285,000 employees an annual $29,865 bonus for five years, and Home Depot could have used the funds to give five annual $16,071 bonuses to each of the retailer’s 463,100 employees. Commenting on the data in The Guardian, Sarah Anderson, director of the Global Economy Project at the Institute for Policy Studies and author of the report, said: “[These] CEOs are focused on their own personal short-term windfall, rather than a long-term prosperity for their workers or even for their own companies.” Forty-seven of the 100 largest low-wage employers in the US spent more on stock buybacks from 2019 to 2023 than on capital improvements. Meanwhile, 20 of the largest low-wage employers spent nine times as much on stock buybacks over the last five years than on employee retirement plan contributions.

10,000 hotel workers strike over pay

More than 10,000 hotel workers belonging to the Unite Here union went on strike this Labor Day, to demand better pay and working conditions. The staff, who work for hotels including Hilton Worldwide and Marriott International, from Honolulu, Hawaii to Boston, Massachusetts, claim their wages do not cover living costs. Meanwhile, they also accuse the hotels of having not replaced many of the workers they cut during the Covid-19 pandemic. The workers are hoping for a repeat of the success that Unite Here workers from the casino sector achieved last year. Here members won record contracts after rolling strikes in Los Angeles and a 47-day strike at Detroit casinos. “Hotel workers across the US are celebrating Labor Day by fighting for raises, fair workloads, and the reversal of COVID-era service and staffing cuts,” said Unite Here International President Gwen Mills. Hilton and Hyatt Hotels (another impacted hotel chain), said they remain committed to negotiating a fair agreement with the union. The strike coincided as the hotel sector saw a 9% increase in Labor Day weekend domestic travel compared to last year, according to American Automobile Association booking data. Reports suggest services such as restaurants and housekeeping were disrupted due to worker shortages on the strike’s day.

Wells Fargo worker found dead at her desk after four days

Well Fargo has said it will be reviewing its policies, after a worker who died at her desk wasn’t found for more than four days. Employee, Denise Prudhomme, clocked in as usual on Friday 16th August, but was found deceased in her cubicle at the end of the day on 20th August – some four days later. She had not scanned out of the building since the previous Friday. While there was no suggestion of foul play, a company statement said it is reviewing “internal procedures” and providing counselors to those impacted. In a statement, Wells Fargo added: “We are deeply saddened by the loss of our colleague, Denise Prudhomme,” and that it is “committed to the safety and wellness of our workforce.” Prudhomme’s cubicle was reportedly on the third floor, away from a main aisle. Explaining why it took four days to discover the body, Wells Fargo told USA TODAY that Prudhomme’s desk was located in a “very under-populated area.” According to employee accounts reported by KPXN, a colleague had found Prudhomme after several people had reported smelling a foul odor. While most employees work remotely, the building is staffed with constant security, according to the outlet.

Washington named best place to work in the US

Washington DC has been ranked the best place to work in the US, by Oxfam America. The rankings – which are compiled based on wage policies, worker protections, and employees’ right to organize – found that Washington, D.C., scored 90.22 out of 100 for wages, 70.24 out of 100 for worker protections and a straight 100 for rights to organize. Oxfam America gave California an overall score of 85.11 out of 100 – comprising scores of 75.27 out of 100 for wage policies, 85.71 out of 100 for worker protections and 100 out of 100 for workers’ rights to organize. California was praised in the report for its policies to protect the health and wellbeing of workers, as well as providing new minimum wages that are above the federal base pay of $7.25. As of Jan. 1, California’s minimum wage is $16 per hour. In April, the starting pay for fast-food workers employed at large chains in California was raised to $20 an hour. Oxfam America’s latest report gathered data from all US states, districts and territories, including Puerto Rico and Washington D.C.

Oklahoma governor accused of preferring migrants to Americans

News outlets are reporting that Oklahoma’s Republican governor wants to help import low-wage migrants for local work that would otherwise provide “decent wages and salaries needed by Oklahomans and their children.” Reports claim a state-funded task force has recommended that the state legislature pass legislation to help employers hire migrants instead of Americans. This is despite claims that Oklahoma currently has an absence of a labor shortage. But critics argue that this in itself is a cause of problems, because it also means the state has witnessed incredibly small wage gains. Governor Kevin Stitt said: “[Only] two counties had rates of wage gains above the national rate of 3.2%. Average weekly wages in the three largest counties in Oklahoma were below the national average of $1,332 in the second quarter of 2023.” Taskforce member Edurne Pineda said the need for immigrants was to “to address the immigration reality in the best way possible.”

This article is part of a series called The Most Interesting HR Stories of the Week.