Labour

GM strike is minor fender-bender, not car crash

16 September 2019

The $52 billion carmaker’s investors are pricing in a modest one-week earnings hit from union workers downing tools. It’s not like the old days: CEO Mary Barra gave in on key points before the UAW strike even began. That should bring members back to work within a few days.

Amazon has an ubersized labor problem

3 September 2019

California lawmakers want Uber and Lyft to treat drivers as employees. The firms’ alternative is to offer minimum wages and paid sick leave. Amazon has been quiet but increasingly relies on gig couriers without benefits. It’s time for Jeff Bezos’ firm to be part of the solution.

U.S. unions are in need of reinvention

30 August 2019

Labor Day originally celebrated full-time and fairly paid employment. The unions which helped win such jobs have declined, in part because the people doing them are now mostly comfortable. Organising workers who are left behind is harder, but would be good for the U.S. economy.

Uber labor bill risks straying from righteous road

29 August 2019

The ride-hailing giant’s home state of California wants gig-economy firms to give workers paid vacation and sick time, following similar cases in Europe. Yet some old-school industries may get carve-outs. That would be a pity. It’s a chance to rethink protections for all earners.

Hadas: What a new hip taught me about economics

3 April 2019

As the codeine wore off, I pondered the mass delivery of individualised care. My lessons: Adam Smith was wrong about specialised labour’s inhumanity, Karl Marx was mostly wrong about class conflict, Max Weber was right about bureaucracy and free markets can’t cure medical ills.

Lufthansa’s next challenge will be domestic

15 March 2018

The German airline is reaping the rewards of a 2014 plan to take on no-frills giants like Ryanair. Barring an unexpected rise in oil prices, Chief Executive Carsten Spohr’s next challenge will be to fight off cut-price competitors when they try to encroach on his home turf.

Ryanair buyback can only cushion so much turbulence

5 February 2018

The no-frills airline boosted earnings in the three months to December but faces a squeeze from pilot salary demands and still-low fares. A 750 mln euro share buyback will smooth the bumps for investors. But it cannot offset the transition to a lower-growth, higher-cost future.

U.S. flu-shot savings are nothing to sneeze at

25 January 2018

A harsh influenza strain is knocking more Americans flat this winter. The tab for medical care should exceed $10 bln, while lost work days will take an even larger toll on companies. Offering free shots for all would be a cost-effective way for society to reduce the burden.

German workers may frustrate ECB’s inflation hopes

9 January 2018

Industrial staff in Europe’s biggest economy are striking for higher pay. They may, however, trim wage demands in return for flexible working. If pay pressures fail to flare in such a tight labour market, the European Central Bank can hardly count on them surfacing elsewhere.

Review: Why Brexit will ultimately please nobody

15 December 2017

Britons voted to leave the EU for myriad and conflicting reasons, according to “Brexit and British Politics”. It’s hard to see a settlement that addresses them all. The risk is that voters see Brexit as another betrayal by politicians, fuelling the disaffection that caused it.

Twin tailwinds help Ryanair weather pilot crisis

31 October 2017

The 20 bln euro no-frills airline will meet its full-year profit goal despite a rostering mess that cost it thousands of flights. Passenger numbers were up 11 pct in the six months to September. Ryanair’s fare cuts helped, but it also got lucky with rivals’ bankruptcies.

Holding: GrubHub serves up a gig-employment pickle

11 September 2017

If the $5 bln food-takeout service wins a rare trial over the job status of workers, discontent could grow in a labor force demanding more benefits. A loss, though, may put the so-called sharing economy at risk. It’s time for a sector that shuns regulation to work with Uncle Sam.

Deutsche Bank CEO tells truth to robotic employees

7 September 2017

John Cryan wants the German bank to embrace a “revolutionary spirit” as people lose their jobs to artificial-intelligence technology. His comments reflect the competitive reality – but Deutsche’s whopping 86 pct cost-to-revenue ratio makes its staff among the most vulnerable.

Macron may be French unions’ new best friend

5 September 2017

The French president’s labour reforms will give firms more scope to bargain directly with their workers, rather than submit to industry-wide agreements. That will fan demand for training in employment law. The odd side-effect could be increased trade union membership.

Macron’s labour reforms are a gutsy start

31 August 2017

Changes such as greater bargaining freedom for employers will make the economy a bit more dynamic. The symbolism is as important. Introducing a highly unpopular cap on unfair dismissal payouts shows President Emmanuel Macron is willing to reform at the expense of poll ratings.

Uber could help itself by giving drivers equity

23 August 2017

The ride-hailing firm is considering handing them stock. They aren't employees, so the SEC would have to agree. The plan could boost Uber's damaged brand and help keep drivers. Other gig-economy workers might gain, too. But existing irate investors could present a roadblock.

British wage mystery has non-British explanation

16 August 2017

The jobless rate has fallen to 4.4 percent, its lowest in over four decades, yet wage growth is tepid. Two things help explain the anomaly: a pool of people on zero-hour contracts available to switch into permanent jobs, and a surprising rise in EU nationals working in the UK.

Britain learns how not to think about work

12 July 2017

A review of the UK “gig economy” suggests some jobs have conditions that make them little better than having no job at all. Others appeal much more than pay levels would suggest. Employment data does not capture the difference. Developing countries have known this for decades.

Germany can jump growth hurdle courtesy of Brexit

27 June 2017

Europe’s biggest economy is expanding so quickly that there’s a growing dearth of skilled labour. The shortage may be severe enough to depress the long-term growth rate, the Bundesbank says. One way to plug the gap is to attract EU workers who no longer feel welcome in Britain.

Markets call Trump’s bluff with Indian IT rally

23 June 2017

The value of the top outsourcing firms has risen about 9 pct, or $12 bln, since the election of U.S. President Donald Trump. Investors have reason to doubt his hard talk on immigration, and to believe Premier Narendra Modi can help his counterpart see the mutual benefits.