This morning, the Labor Department released figures of hiring and unemployment for the month of September. In line with economists’ expectation that the report would reflect a relatively low rate of wage gains and a considerable public sector jobs gap, the New York Times stated that the official figures reflect a decrease in wages for private sector employees and a significant shortage of newly created jobs. The mere 136,000 jobs created by the economy fall well short of the 173,000 that were originally predicted.
Consistent with earlier speculation that Fiat Chrysler’s recently-announced pact with the United Auto Workers Union (UAW) may be in danger, USA Today confirmed yesterday that the union members voted down the contract proposed by its leaders. Significantly, sixty five percent of the Fiat Chrysler workers voted against the proposed four-year contract, constituting the UAW’s first rejection of a national contract in modern times (unprecedented since 1982). While Fiat Chrysler was quick to issue a statement contemplating its intent to maintain a continuing dialogue with the UAW and work toward an agreement, tensions between UAW workers and plant management remained high on Thursday in the wake of the defeated contract, with many speculating about whether the union would initiate a strike. One union insider confirmed that the union has already made strike preparations at most of its local units.
For now, all eyes remain on the elected union officials who are currently saddled with a tough decision about the most prudent next move for the union—to strike and demand a better deal at the bargaining table, to request that members re-vote on the existing agreement, or to move on to contract talks with Ford or GM. Although union officials conferred at various plants yesterday afternoon to talk through the issues, the Detroit Free Press reported that, at least as of six hours into the meetings, the officials had not announced any decisions or next steps.
In other news, the L.A. Times reports that, despite the emergence of apps and gadgets that have increased companies’ ability to connect with customers directly and revolutionized the way people offer and consumer goods and services, the nation’s productivity remains puzzlingly sluggish. In fact, research suggests that the productivity falloff is actually concentrated in producers of information techniology and dependent industries. Essentially, while the use of apps and gadgets have spurred sweeping changes to the business models of various wholesalers, the resulting output gains petered out after just a few years. Although experts disagree about whether the nation’s disappointing productivity gains are a permanent rather than temporary trend, some speculate that companies will soon seek to achieve growth by investing in labor-saving technologies, such as driverless trucks or the utilization of an Uber-like service for the distribution of goods. This prediction rings especially credible given Amazon.com Inc.’s recent announcement that it will be joining the gig economy and offering businesses a new service—“Amazon Flex,” which can aptly be described as “an Uber-like service for the distribution of goods” utilizing “independent contractors.”
Daily News & Commentary
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October 19
FDA reverses course on policy prohibiting off-duty union activity; FAA and NATCA reach deal to secure pay increase for air traffic controllers.
October 18
Federal judge again halts cancellation of the Bureau of Prisons’ CBA; tabletop gaming workers face roadblocks in union recognition.
October 16
Department of Labor reduces wage-and-hour enforcement at unionized workplaces; Fain's victory poses question of federal monitor's extension.
October 15
New reporting examines the rollback of child labor protections; California tries to block a strike; NLRB charges Wisconsin mental health provider with firing workers during union drive.
October 14
Eleventh Circuit overturns ERISA exhaustion rule; DHS finalizes removal of automatic renewal for work permits; AFGE challenges SSA over flexible scheduling policy.
October 13
Chicago hotel workers remain on strike; a coalition of Democratic states sues the Labor Department over canceled unemployment insurance grants; the Federal Labor Relations Authority establishes a new mediation framework for federal worker disputes.