Bank of America exec demoted after death of ‘100 hours per week’ employee
A Bank of America executive with a reputation for driving junior bankers hard has been ‘reassigned’ to a new role at the company following the death of a junior employee who had been working 100-hour weeks. Howe, who reportedly had a reputation for not enforcing a maximum 80-hour working week, will now have his oversight responsibilities removed, with commentators suggesting he will likely be forced to quit the company entirely. The demotion comes as employee, Leo Lukenas III, a former Green Beret, died suddenly in May at the age of just 35. He had been working under Howe, reportedly around the clock, to close a major merger before his death. It is claimed that in the weeks prior to his unexpected death, Lukenas complained about the amount of time he had been working and had considered asking for a 10% pay cut in return for fewer hours and more sleep. While no disciplinary action has so far been taken against Howe, it is being reported that around 50 of the 150 employees in his FinTech unit were reassigned to another group last week, according to Bloomberg. The incident has reopened a longstanding debate about whether the culture within the finance industry is simply too demanding and whether appropriate safeguards are in place for employees. The Wall Street Journal recently revealed that workers at Bank of America were instructed to under-report the hours that they had worked.
EY fires staff for taking more training that they should
While most organizations actively encourage staff to take as many online learning opportunities as they can, accounting firm EY has bizarrely decided to fire some of its US employees for taking more than one online course during its “EY Ignite Learning Week” in May. The company said the layoffs were a disciplinary measure to punish violations of its global code of conduct and US learning policy. Understandably however, employees have been reported to have found the layoffs a disproportionate reaction. Some of the fired employees told the Financial Times that they had no idea they were violating anything by signing up for several classes, and were mainly led by curiosity. Others emphasized that EY “breeds a culture of multi-tasking,” with some employees working with three monitors and are forced to log 45 hours a week and do extra hours of internal work. This strange firing comes hot on the heels of Meta sacking some of its employees for allegedly abusing food coupons. The company provides its staff with $20 for breakfast, $25 for lunch, and $25 for dinner. However, some employees were found to be “pooling the money together” and saving it up to buy items like acne pads, toothpaste, wine glasses, and laundry detergent. Meta has reportedly fired 24 employees for abusing the food coupon system over an extended period of time.
Two-thirds of employers are losing staff to remote work opportunities
In the latest indictment of Amazon’s return to work mandate, new research finds that more than two-thirds (67%) of US employers have lost talent to competitors offering more flexible work strategies – such as remote and hybrid-remote work. Although this is less than the 73% of global employers polled (these came from 10 different countries), the figure is a startling one, and underscores why some commentators are arguing RTOs are Dickensian, and will not work out longer-term. In better news, the research [the 2024 Global Workforce Report], by remote.com, did find that 25% of employers were now agreeing to more hybrid arrangements for staff. It also found that amongst those firms that ‘did’ allow hybrid and asynchronous working, 40% of hiring executives said this positively impacted work/life balance for employees, while 37% of organizations said they have observed higher productivity levels. More than third (34%), also said their flexibility initiatives had increased employee engagement, while 32% of hiring managers noted there had been reduced absenteeism due to their flexible and remote working policies.
Trump Media CEO accused of ‘hiring America last’
A whistleblower at Trump Media has accused its CEO, Devin Nunes, of going against the presidential campaign promises of Donald Trump, by hiring ‘America last’, and instead hiring foreign contract workers at the expense of “American workers who are deeply committed to our mission.” In a complaint letter, the whistleblower said: “This approach not only contradicts the America First principles we stand for but also raises concerns about the quality, dedication, and alignment of our workforce with our core values.” The complaint will be an embarrassment to Donald Trump, who has campaigned persistently around a promise to “stop outsourcing” and “punish” companies that send jobs abroad. The whistleblower accuses Nunes, a former Republican congressman, of hiring unqualified members of his inner circle and being dishonest with employees at the company, which runs the social media platform Truth Social. The letter – which purportedly has the support of half of Trump Media’s employees – is addressed to the audit committee of the board, and was submitted through the company’s anonymous whistleblower channel. Trump Media has so-far declined to answer detailed questions about the whistleblower complaint or provide comment from the board. In a previous statement, the company’s lawyer said that Trump Media “strictly adheres to all laws and applicable regulations.”
Cognizant guilty of discrimination against non-Indians
Technology giant, Cognizant has been found guilty of engaging in discriminatory employment practices, by favoring H-1B visa holders from India over local (US) employees. A case was brought against Cognizant by three Caucasian employees who claimed the business had a history of preferring South Asian workers in employment decisions. The employees claimed they were terminated after being “benched” with no work for five weeks and then replaced by “visa-ready” workers from India set to be deployed to US projects and assignments. A jury has awarded punitive damages to the plaintiffs. Cognizant has denied all the allegations against it, and says it plans to appeal the decision. In a statement it said: “Cognizant is disappointed with the verdict and plans to vigorously defend itself and appeal at the appropriate time.” It added: “We provide equal employment opportunities for all employees and have built a diverse and inclusive workplace that promotes a culture of belonging.” A Bloomberg report recently claimed Cognizant had the highest number of H-1B visas of any US employer from 2013 to 2019, according to Citizenship and Immigration Services.
Student debt significantly impacts both public and private sector staff
New research reveals the level of student debt Americans rack up at college has a significant contribution to the level of stress they experience at work, and also means they are more likely to change employment to seek better pay. The findings, by MissionSquare Research Institute, reveal 93% of private sector employees and 89% of public sector workers with student loans consider their debt levels problematic, with the debt being their largest source of stress amongst 44% of them. But more than this, the study reveals student loan debt impacts employment decisions, particularly in the public sector, where salaries are typically lower. Public employees (38%) are more likely to view student loan debt as a major factor in seeking other employment compared to private sector staff (25%). The research also revealed that 15% of workers expect their student debt to take more than 20 years to clear. Meanwhile, it also found only 29% of public sector employees said their employers told them about Public Service Loan Forgiveness programs. Said Zhikun Liu, vice president, head of MissionSquare Research Institute: “Student debt significantly impacts both employees’ financial well-being and employers’ ability to attract and retain staff, particularly among public employees.”
Mental health of US workers near ‘all-time low’
Despite life largely having returned to normal since the outbreak of the Covid-19 virus five years ago, data from The Guardian’s Workforce Well-Being Index (which measures how US workers feel about their overall wellness), finds there has been a steep decline in overall wellbeing over the last few years. The index finds nearly a quarter of workers (24%) say they experienced increased anxiety, depression or other mental health needs in the last two years. Moreover, only 34% of US workers say they maintain a healthy work/life balance. Generation Z workers, single parents and caregivers are amongst the groups to share the lowest self-reported mental health, found the research.