HR News - WeWork Files for Bankruptcy, Pharmacy Workers to Unionize, SAG-AFTRA Gets Deal, Layoffs, and More
HREN News Roundup for the Week of 11/6
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This is a weekly roundup of the latest in HR News.
This week's HR news serves up another round of headlines that signify a turning point in the world of work. Pharmacy workers are working toward unionizing, while SAG-AFTRA reached a tentative deal to end the longest strike in Hollywood's history. WeWork, once a darling of investors and a company that relied on contractors and entrpreneurs using their workpaces to earn profit, filed for bankruptcy. Vice, the media company, and Virgin Galactic conducted layoffs. And people began to realize that the United States has too many retirees, which is contributing to the labor shortage.
WeWork Files for Bankruptcy
The biggest news of the week was that WeWork, once beloved by the media, filed for bankruptcy. Providers of flexible office space with short leases, WeWork was supposed to be ushering in a new era in work that promoted the gig economy, freelancers, contractors, and entrepreneurs. The company's plan is to give up 70 leases or more, according to The New York Times, which adds:
"Many employers are paring back their office space because workers aren’t going in five days a week after growing accustomed to working remotely or on a hybrid schedule. Office vacancies are at their highest level in decades, with lots of space available for sublet often at a deep discount from the rents that prevailed before the pandemic. WeWork’s bankruptcy will only make the situation worse by leaving landlords with more space to fill."
The consequences of this bankruptcy and the push for remote work is like a gut punch to New York and other large cities in the United States. Recently, some experts have suggested that a shift to remote and hybrid work is forcing a redesign of the U.S. economy.
Pharmacy Workers to Unionize
CNN reported that pharmacy workers at companies like Walgreens and CVS planned to launch the Pharmacy Guild, a labor union. The International Association of Machinists and Aerospace Workers (IAM) and pharmacy labor activists are supporting this unionization effort. The workers say that they are overworked and understaffed. They argue that this is dangerous for them but also patients who rely on them for their medication.
This news comes on the heels of these workers staging three separate walkouts around the United States. It is part of a greater movement in which workers are unionizing, striking, and demanding better pay and working conditions across the board. It's also part of an era that risks being remembered for its divisiveness and the deepening divide between the poor and the rich and the loss of the middle class.
READ: The HR News Roundups Featuring News of Unions and Strikes
SAG-AFTRA Reaches a Deal
After more than 100 days on strike the actors in SAG-AFTRA have reached a tentative agreement. This negotiation yielded the "first-ever protections for actors against artificial intelligence (AI) and a historic pay increase. The deal will see most minimums increase by 7% — two percent above the increases received by the Writers Guild of America and the Directors Guild of America," according to Variety.
More Layoffs
Virgin Galactica and Vice Media are conducting layoffs. Virgin Galactica is cutting 185 employees or about 18% of its workforce to save an estimated $25 million annually, according to Reuters. On the other hand, Vice filed for bankruptcy ahead of a a planned sale recently. Now, it's laying off dozens of staffpeople. Some took to social media to criticize Vice's handling of the layoffs, according to CNN.
Too Many Retirees
More people retired during the pandemic than anticipated. "Pre-pandemic, the participation rate for workers 65 and older hovered around 21%; now, it's down to 19.3%," according to LinkedIn. The post includes the suggestion that even those who would like to join the workforce face ageism and other challenges that are making it harder for them to get a job. If the demographic shift that appears to be happening continues and certain industries face a labor shortage, maybe people will reconsider older, more experienced workers with much to offer.
HREN Talked Change Management
In the last week, HR Exchange Network had an in-depth conversation about change management for successful digital transformation with HR leaders. The lively audience and the speakers provided practical information. The biggest takeaway was that change requires constant communication. You can watch - for free - on demand now.
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