The wage dispute started out as a seemingly routine matter.All day long, the workers at a recycling plant in Milpitas, California cleaned and sorted trash. In 2013, they decided to form a union for better pay.But there was just one problem…You see, they’re not technically paid by the owner of the recycling plant. Instead, they’re paid by a staffing agency (which is under contract to the owner of the recycling plant).Got all that? So who’s really the workers’ boss?Few investors realize it yet, but the answer – from a key government agency – threatens to upend the long-term business models of the stock market’s most successful retail companies…”Contract labor” is a huge and growing force in today’s economy. A record 3.2 million people, according to the American Staffing Association, work as “temps” in one capacity or another.For instance, a little over 40% of the nation’s warehouse and light industrial workers – loading crates or skating their way through cavernous buildings “picking” goods to fulfill someone’s Internet order – are considered temporary contractors.They may work in a warehouse owned and managed by Amazon, for instance, but the corporate name on their paycheck is that of a contract labor company.Flex LaborThe arrangement gives retailers plenty of flexibility to deal with the ebb and flow of seasonal demand. But it also gives them an “out” when it comes to wage disputes. If the contract staffing company at a particular warehouse suddenly finds itself dealing with a newly organized workers union, the retailer can end the staffing company’s contract and bring in a new firm.End of problem.And it was all completely legal. Under the old definition in U.S. labor law, the workers’ boss was the staffing company – not the owner of the warehouse. So the warehouse owner had no obligation to deal with a new union.That made it quite hard for unions to organize workers and demand higher pay in fast-expanding sectors of the economy.But their job just got a lot easier.Recently, the National Labor Relations Board (NLRB) came out with a new, expanded definition of “Who’s the boss?” According to the NLRB, both the staffing firm AND the owner of the warehouse have what’s called “joint employer” responsibility for dealing with a labor union.Huge Implications for the U.S. Economy The experts who follow these kinds of things say the NLRB’s decision will reshape corporate America’s reliance on contract labor. Some firms may decide to come to the bargaining table, bite the bullet and pay higher wages. Others could take the opposite approach and divest their warehouses or manufacturing facilities.The NLRB decision could even affect franchising chains. Until now, a parent company – faced with wage demands from workers at a franchisee’s restaurants – could take a hands-off approach and refuse to negotiate. But now, under the expanded definition of “joint employer,” the parent company may well have a mandated obligation to come to the bargaining table.You can see where this is heading, right?It’s yet another example of a powerful shift – the trend toward rising wages – just getting underway in the U.S. economy. Temporary workers are generally paid less, so their growing use in recent years greatly added to the profit margins of America’s retailers, service companies and manufacturers.And with those higher profit margins came higher and higher stock prices.How long do you think that’s going to be the case as workers reclaim more power over wages at the negotiating table?Higher wages on corporate margins are going to send ripples through Wall Street and the U.S. economy.
Tag Archives: Marketing
Exploring How Strategic Online Marketing Can Help Grow Start-Up Businesses
The global economic threat caused by the continuous spreading of the covid-19 virus has posed an increasing pressure to the survival and growth of start-up businesses in Sydney. The evident urgency to adapt to the social changes has hastened the local companies to make bold moves and remain highly competitive in their respective niches.
Here are some basic tips and things to prioritise to future proof a start-up business amidst the financial challenging time of the pandemic.
Conduct Regular & Timely Business Reviews
It is a common practice for corporations to perform business reviews from time to time to make sure that the strategies that they have laid out in the early stage remain effective up to the present time. Conducting timely business performance evaluation is necessary to determine the issues that the operations are facing and to formulate winning strategies that will address them.
Effective Money Management Is the Key
Setting a realistic financial goal is important to ensure the effective management of your corporate resource. One of the strategies that firms use is to keep the operational expenses ratio to below 60% as it might open more opportunities for them to invest in other thriving fields.
Another sound money management move is to settle the corporate payables ahead of time. In addition to eliminating additional interests or bank charges for delayed payments, it helps new businesses build a good credit score.
Lower the Operational Costs
Understanding the factors affecting the overall sales of a company is necessary to the operational success of a start-up business. Technologies, manpower and time. These are the key elements that have an extensive impact on the corporate sales targets. One effective way to meet your targets is to upgrade the technologies that the staff uses as it will eliminate the inefficiencies in their daily operations.
Keeping it traditional or going digital? Most companies transition to an eCommerce setup and partner with online marketing Sydney agencies to cut their operational costs. There is a good chance that your business will grow if you outsource and hire the services of the best SEO specialist Sydney. SEO experts are in demand nowadays as their works are sales focused.
For startups or small to medium sized businesses, it will also help to invest in local SEO sydney strategies. This technique is effective when it comes to increasing one’s website visibility without burning a hole in your pocket.
Strong Local Marketing Strategies
Providing a personalised customer experience is important to the future performance of a thriving business. Having a well-trained customer service crew will strengthen the reputation of your company. It is also necessary to invest in well-tested technologies and digital innovations to boost customer engagement and bring your business performance to the next level.