Low Unemployment Rate Shifts Power To Workers
Several Apple Store employees have expressed interest in unionising. The National Labor Relations Board stated that workers from an Atlanta store applied for a union election last week and that a vote could be approved soon. According to organisers, Apple employees at a New York store are also planning to file for an election.
- Despite the fact that union membership in the United States has been declining in recent years, workers at a number of corporations, including Amazon, Starbucks and Verizon, have recently chosen to unionise
Though Road Ahead For The Amazon Labor Union
The nascent Amazon Labor Union, or ALU, has demanded, among other things, longer breaks for warehouse workers, more vacation time, and a significantly higher minimum hourly wage of $30, up from just over $18 at the Staten Island facility. To come close to that, the grassroots union would have to craft a contract with Amazon that is acceptable to both parties. It may be tough to do so.
- Amazon is attempting to have the election overturned, claiming in a recent petition with the National Labor Relations Board that the vote was tainted by organisers and the board's regional office in Brooklyn, which oversaw the election
- In a filing to the government on Friday, the firm provided evidence to back up its complaints. The labor board, according to a spokesman, will not make that document public while the matter is still pending
Strikes are one option for employees to fight back. That, of course, comes with its own set of risks. Amazon could replace any striking employee with a substitute worker, leaving strikers out of work for months or even years, according to Michael Duff, a former NLRB lawyer.
The Fed May Break The Momentum
On Thursday, Powell stated that lowering inflation is "absolutely essential" during an International Monetary Fund event. He also stated that a half-percentage-point hike in interest rates is "on the table" for the Fed's May policy meeting.
- Investors are becoming increasingly concerned about the potential for growing inflation to stifle economic growth, as well as the Fed's efforts to contain these price pressures
- Further liquidity contraction and rates increase may render consumption more costly, dissuade prospective home buyers, cool down the economy and the labour market
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