This
week, the New
York Times reported that Elon Musk is demanding his workers return to
the office or be fired. According to the Times, Musk sent emails to employees
at both SpaceX, the rocket company he runs, and Tesla, the electric carmaker he
leads.
In
his email to SpaceX employees, Musk told workers that they were required to
“spend a minimum of 40 hours in the office per week.” Those who did not do so would
be fired, he wrote in the memo, which was obtained by the Times.
In his memo to Tesla’s executive staff, Musk wrote that “anyone who wishes to do remote work” must be in the office for a minimum of 40 hours a week. Those who decline should “depart Tesla,” he added.
The
Times reported Tesla had more than 99,000 employees at the end of last
year, while SpaceX employs about 12,000 people.
Nick
Bloom, an economics professor at Stanford University, told the Times that
he expected SpaceX and Tesla to lose about 10 percent to 20 percent of their
current work forces and for recruiters to try to poach employees by offering
jobs with more flexible work options.
Many
Tesla and SpaceX employees who work in cutting-edge tech may believe in Musk,
but there are also people “who are in more common activities like I.T.,
finance, H.R. and payroll,” Bloom said. “They may say: ‘I’m not designing cars.
I’m doing the payroll of employees, and I can do that somewhere else.’”
U.S. Economy Adds 390,000 Jobs in May
The
U.S. labor market added 390,000 jobs in May and the unemployment rate held
stead at 3.6%, according to the Labor Department’s jobs report on
Friday.
Average
hourly earnings grew 0.3% vs the expected 0.4%, but they remain up 5.2%
year-over-year. The May data reflected a slower pace in hiring than in April,
which saw payrolls rise by a revised 436,000. Over the last three months job
gains have averaged 408,000.
May’s
jobs report also came as investors look for signs of continued economic
momentum amid mounting worries over rising costs and the specter of recession.
“Another
month of solid job growth in May is further evidence that the U.S. economy was not
in a recession in the spring,” Comerica Chief Economist Bill Adams told
Yahoo Finance. "Americans continue to return to the labor force
as the rising cost of living pressures household finances.”
At
the industry level, employment in the retail sector notably softened in May,
falling by 61,000 with job losses primarily across general merchandise stores,
clothing, and clothing accessories stores. The declines coincide with some
recent earnings reports from some big-name retailers that suggested hiring may
cool as companies grapple with rising costs due to inflation, reported Yahoo
Finance. Overall employment in the retail industry, however, remains
159,000 jobs above its February 2020 level.
With
the labor market at a near-full recovery and inflation remaining a concern,
attention turns to the Federal Reserve’s efforts to normalize surging price
levels. An unusually tight labor market has been the focal point of policymakers,
with the imbalance between job openings and available workers placing upward
pressure on wages and adding to inflationary pressures. On a month-over-month
basis, average hourly earnings rose by 0.3%, on par with gains seen in April.
Still,
wage growth is trailing inflation by a substantial margin, and serves as a “fresh
reminder of how inflation is sapping household buying power,” Bankrate Chief
Financial Analyst Greg McBride told Yahoo Finance.
Apple Raises Starting Hourly Pay to $22 an Hour
Apple
Inc. is boosting pay for workers amid rising inflation, a tight labor market
and unionization pushes among hourly store employees, according to a Wall
Street Journal report.
The
company told employees in an email last week that it is increasing its overall
compensation budget. Starting pay for hourly workers in the U.S. will rise to
$22 an hour, or higher based upon the market, a 45% increase from 2018.
Starting salaries in the U.S. are also expected to increase.
“Supporting
and retaining the best team members in the world enables us to deliver the
best, most innovative, products and services for our customers,” an Apple
spokesman said in a statement. “This year as part of our annual performance
review process, we’re increasing our overall compensation budget.”
WSJ reported that in
recent months, Apple has been facing unusual labor unrest. That discontent has
spanned from front-line store retail workers agitating for unionization to
salaried engineers unhappy with the company’s plans to return to the office. Apple
recently paused plans to call salaried workers back to the office for at least
three days a week as COVID-19 cases rose in California.
Due to Pilot Shortage, U.S Airlines Consider Cutting Training Hours
As reported by Business Insider, regional carrier Republic Airways, which operates on behalf of Delta, American, and United, is trying to reduce its pilot training requirements in order to get more pilots in the air. In April, the airline asked the Federal Aviation Administration for permission to hire pilots out of its training academy when they reach 750 flight hours instead of the 1,500 hours currently required for most pilots.
In
January, Delta announced it would end the requirement for pilots to have a
four-year degree, saying there are qualified candidates "who have gained
more than the equivalent of a college education through years of life and
leadership experience."
“The
pilot shortage for the industry is real, and most airlines are simply not going
to be able to realize their capacity plans because there simply aren't enough
pilots, at least not for the next five-plus years,” United CEO Scott Kirby said
in a quarterly earnings call in April, per CNBC.
Business
Insider also reported that in addition to reduced training and education
requirements, Senator Lindsey Graham (R-S.C.) could propose a bill that will
increase the mandatory pilot retirement age from 65 to 67, reported aviation
trade publication Airline Weekly. The move would be an attempted fix to
the shortage, allowing pilots to stay on with their company for longer before
being forced to retire.
DOL Updates FMLA Guidance on Mental Health Treatment
The U.S. Department of Labor’s Wage and Hour division recently published new guidance designed to provide additional resources regarding workers’ rights to take leave for serious mental health conditions, and to help employers to better understand how to comply with the Family and Medical Leave Act (FMLA).
“An eligible employee may take FMLA leave for their own serious health condition or to care for a spouse, child or parent because of their serious health condition,” the DOL noted in a statement, adding that “a serious health condition can include a mental health condition.”
Mental and physical health conditions are considered serious health conditions under the FMLA if they require inpatient care or continuing treatment by a healthcare provider, such as an overnight stay in a treatment center for addiction or continuing treatment by a clinical psychologist.
The newly published guidance includes Fact Sheet #280: Mental Health Conditions and the FMLA and Frequently Asked Questions on the FMLA’s mental health provisions.
