Walgreens distribution center in Killingly, Connecticut shuts down operations, hundreds of workers will be laid off
Walgreens has announced that the company will close its distribution center in Killingly, Connecticut. The closure of the distribution center will affect 322 workers, and layoffs will begin to affect workers in early May. Walgreens is also closing a distribution center in Florida, and the closures will reduce operating costs. Walgreens stated that the company is focusing on increasing efficiency and building momentum in the company. Workers will receive sixty days of pay and benefits, and Walgreens will also provide outplacement services and on-site career fairs to workers. Some of the affected workers will be offered positions at other Walgreens facilities, and various companies in the area have stated that they are hiring and are willing to hire affected workers. Other Walgreens locations have also been affected by the company’s cost-cutting efforts, and stores in West Hartford and Canton have closed in recent months.
See Liese Klein, "Walgreens to close Killingly distribution site, lay off 322 workers", CTInsider, March 18, 2024
Companies and unions in Japan agree on preliminary 5.28% wage increase
Major firms and unions in Japan have negotiated wage increases, and it is reported that wages will increase by 5.28%. The increase is the highest in decades but is still slightly below the demanded wage increase from the Japanese Trade Union Confederation. The Japanese Trade Union Confederation has hundreds of affiliated labor unions and was seeking a 5.85% increase in pay. The economic conditions in Japan allow for a large pay increase, and the country has high corporate earnings and shortages of workers in various industries. The government has stated that it strongly supports wage growth in the economy, and the pay hike momentum is crucial to fighting deflation in Japan’s economy. Last year’s pay increase was 3.8%, which was a record as well. Major Japanese companies and numerous trade unions reached agreements late last week, and many of the firms met all of the demands from unions. Toyota, the world’s leading automaker, accepted all union demands and significantly increased hourly wages.
See Kazuaki Nagata, "Japan’s labor unions win big pay raises for members", Japan Times, March 18, 2024
Chattanooga, Tennessee Volkswagen plant seeks union representation from UAW
A Volkswagen plant in Chattanooga, Tennessee has filed a petition with the National Labor Relations Board seeking a union election. A large majority of the plant’s workers signed union cards, and if the union election is successful, workers will be represented by the United Auto Workers union. Around four thousand workers are employed at the plant and produce sports utility vehicles and electric vehicles. The Chattanooga factory is the only Volkswagen plant in the world that does not have union representation, and Volkswagen stated that the company fully supports holding a union election. The plant has attempted to unionize twice before, and both times votes against unionizing outweighed votes in support. In both cases, the management at the Volkswagen plant did not express opposition. Workers are hopeful that the current effort to unionize will be successful due to the momentum from the UAW win earlier this year.
See Neal Boudette, "VW Workers Seek Union Vote at Tennessee Plant for Third Time", The New York Times, March 18, 2024
Paraprofessionals and custodians in the Olathe School District in Kansas begin unionization efforts
Various hourly workers in the Olathe school district, a school district located in the Kansas City area, expressed intentions to organize at a recent school board meeting. Over seventy workers showed up to the meeting, and the group of workers are hourly employees who work custodial and paraprofessional duties. The employees are certified so that they are not able to join the teacher’s union, and therefore will begin union organizing efforts. Workers state that wages have not kept up with the increases in costs of living, and they are seeking pay raises and additional employee benefits. Employees state that they are struggling to afford goods and services for their families due to stagnant wages, and many workers have to have second or third jobs for additional income. Workers are seeking representation from the Communications Workers of America union, and the union represents hourly workers in other school districts in Lawrence, Kansas. Hourly employees working in schools in Wichita, Kansas have also successfully unionized.
See Sarah Ritter, "Struggling to 'bring food to our families' Olathe schools hourly workers want a union", The Kansas City Star, March 14, 2024
Workers at Nevada Patagonia store successfully unionize, the first Patagonia location to gain union representation
Workers at a Patagonia outlet store in Nevada voted in favor of union representation earlier this
Month and workers will be represented by the United Food and Commercial Workers union. During the union organization efforts, the store managers stayed neutral throughout the process. Patagonia presents itself as a socially and environmentally responsible company, and Patagonia’s response to the unionization of workers aligns with the company’s values. Patagonia differs from other major companies that are known for having positive social impacts but expressed opposition to unionization efforts. This includes companies such as Trader Joe’s and REI, and these companies have opposed union organization efforts and have utilized anti-union tactics to scare workers. Patagonia management announced in a statement that the company’s actions regarding unions will align with the company’s stated values. The company values the democratic process and would like workers to have a voice in the process.
See Dave Jamieson, "A Strange Thing Happened When Patagonia Workers Said They Wanted A Union", HuffPost, March 14, 2024
Bakery workers in Madison, Wisconsin ratify first union contract
Workers at a bakery in Madison, Wisconsin have reached a contract agreement with bakery management. Workers at the Madison Sourdough bakery are represented by the United Food and Commercial Workers union, and this is the first union contract to be ratified at the bakery. The contract will increase employee base wages, and increase pay each year. Workers will also receive paid sick leave and additional employee benefits. The benefits include an increase in paid vacation days, short-term disability pay, paid parental leave, and employee retirement plans. Bakery management and the union have also created a joint committee that will focus on safety and labor management.
See Erik Gunn, "Madison Sourdough employees ratify union contract that boosts pay, benefits", Wisconsin Examiner, March 14, 2024
Social workers providing mental health services in England announce strike action
In Cumbria, England, social workers in the mental health division will be participating in strike action starting on Friday this week and will be on strike for 48 hours. Workers state that their positions were given incorrect evaluations by the Cumbria City Council. The workers applied in 2022 for their positions to be regraded, but the Cumbria City Council denied the regrades. These employees are represented by the GMB union and carry out essential functions. They administer mental health assessments and determine if individuals need to be detained based on the United Kingdom’s Mental Health Act. The union states that the work takes an emotional toll on employees and that the Cumbria City Council did not take this into account when grading the positions initially.
See "Mental health social workers to strike for two days", BBC, March 13, 2024
Marketing and communications division at IBM to be hit with layoffs
Various workers in the marketing and communications departments at IBM were notified on Tuesday that they would be laid off. The company’s chief communications officer held a meeting with the divisions earlier this week and announced the news. IBM had stated earlier this year that thousands of positions would be cut in the near future, and employees would be trained on the use of AI to increase productivity and efficiency. IBM had a successful fourth quarter and increased earnings by four percent compared to the fourth quarter last year. This is partly due to Watson X, a new IBM initiative focused on the development and advancement of machine learning models. However, IBM faces steep competition in the AI product market, as Microsoft, Google, and Amazon have released similar AI models.
See Hayden Field, "IBM is slashing jobs in marketing and communications", CNBC, March 13, 2024
New Jersey firefighters call for new equipment after mechanical issues put lives in danger
Firefighters in Camden, New Jersey represented by the Camden Fire unions have written a letter to the city government detailing the deteriorating quality of fire equipment. The firefighters state that numerous trucks have mechanical issues and over half of the fire engines in the area do not pass a critical pump test. There is also a large backlog of repairs, due to a shortage of mechanics. The issues put the lives of firefighters and citizens at risk and firefighters were unable to put out a fire last week due to an issue with the water hose, and an individual inside the home died. The Camden city government responded to the letter from the Camden Fire unions stating that new trucks and equipment have been ordered, and the city government is also increasing hiring efforts for certified mechanics.
See Ryan Hughes, Casey Kuhn, "Camden Fire Unions say old trucks and mechanical issues put lives at risk", CBS News, March 13, 2024
United States Maritime Alliance and the International Longshore Men’s Association have begun contract negotiations
The International Longshore Men’s Association represented thousands of maritime workers in the United States. The association has begun negotiations with the United States Maritime Alliance, which represents various ocean carriers and terminal operators. The parties have until mid-May to reach tentative local contract agreements before a master contract needs to be reached in late September. Workers at various ports around the United States have already secured local contracts, such as the ports in Baltimore, New Jersey, and New York. If negotiations are not successful, workers may potentially take strike action, which would significantly disrupt the transportation of cargo. The International Longshore Men’s Association controls the movement of cargo on the East Coast as well as the West Coast. Workers represented by the union have gone on strike since 1977, and this is largely due to the bonuses that workers can earn. The bonuses are based on the amount of cargo that workers process in a year. The union is seeking greater bonuses and significant wage increases in their new contract that will be in place for the next six years.
See Lori Ann LaRocco, "Strikes at East Coast, Gulf ports are a big labor risk this year, and trade diversions have already started", CNBC, March 12, 2024
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