Archive

Reuters blog archive

from Breakingviews:

Wal-Mart can win leading the way on minimum wage

By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Wal-Mart Stores can win by leading the way on the minimum wage. The mega-retailer’s labor costs would rise significantly if the U.S. government were to increase the national pay floor. But the company also has far more low-wage customers than it does employees. That would translate into a net gain in earnings, according to a Breakingviews analysis.

President Barack Obama and his party want to raise the lowest hourly wage in the United States from $7.25 to about $10. Almost half of Wal-Mart’s 1.4 million domestic employees make less than the higher rate, according to PayScale, which crunches corporate pay data. Those workers earn on average $8.45 an hour on a 34-hour workweek. After accounting for payroll taxes, a higher minimum wage would increase Wal-Mart’s costs by about $2 billion.

At the same time, $10 an hour would mean about a quarter of its shoppers take home more pay, according to Breakingviews calculations, using data from Prosper Insights & Analytics. If they were to spend proportionately more – since the average low-wage worker’s pay would rise 20 percent, so might the amount that person spends at Wal-Mart – then the company’s revenue could increase by $13 billion.

from Photographers' Blog:

Pakistan’s beasts of burden

Choa Saidan Shah, Pakistan
By Sara Farid

A donkey carrying sacks of coal walks through the narrow tunnels of a coal mine, in Choa Saidan Shah in Punjab province April 29, 2014. REUTERS/Sara Farid

The miners call their donkeys their “biggest treasure”, an animal whose strength and patience lets them work in some of the world’s most dangerous mines. But life in Pakistan’s mines is dangerous for everyone – there’s a constant risk of cave-ins, and the black dust floating in the air slowly fills up the lungs of both man and beast.

A young miner leads his team of donkeys back to the coal face to collect more coal underground in Choa Saidan Shah in Punjab province April 29, 2014. REUTERS/Sara Farid

The donkeys make twenty trips a day from the depths of the mine to the storage site where they dump the coal. For each trip, they are loaded up with coal sacks weighing 20 kg (44 lbs) each. The teams of four to six animals are guided to the surface, unloaded, then obediently turn and walk again towards the black hole.

from Breakingviews:

U.S. is minimum-wage laggard given its prosperity

By Martin Hutchinson
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

America is a minimum-wage laggard – at least relative to its economic prosperity. With Washington considering a higher pay floor and Peru’s prime minister losing his job over the issue, a Breakingviews analysis shows that minimum wages as a percentage of local income levels are still low in the United States and, for instance, in neighboring Mexico.

from Edward Hadas:

AOL, solidarity and health insurance

The head of the American internet company AOL managed to say something really stupid a few weeks ago, and to sound callous at the same time. It’s a shame Tim Armstrong came off so badly, because he was trying to deal with a serious topic.

Armstrong was trying to justify the company’s decision, since reversed, to trim its employees’ retirement benefits. He started out at a disadvantage, because the chosen cutback was sneaky. A change that sounds innocuous, moving from monthly to annual employer payments into employee pension savings accounts, is actually a way to eliminate payments to employees who leave before the end of the year. It’s hard to look honest and upfront when explaining that.

from Breakingviews:

Return to U.S. workforce of old a mixed blessing

By Daniel Indiviglio
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The recent decline in the U.S. jobless rate to 6.7 percent is flattered by low labor participation. A return to the 2006 level of workforce involvement would mean 8 million more job-seekers and unemployment running over 11 percent. But as a Breakingviews calculator shows, that dramatically overstates the scale of the problem.

from The Great Debate:

Pennsylvania as the new Wisconsin in union fights

The Wisconsin state capitol was the site of massive protests in 2011 during the fight to pass Republican Governor Scott Walker’s labor reforms. The following year Big Labor staged demonstrations in Michigan against Republican Governor Rick Snyder’s right-to-work bill, which ultimately passed. Now Pennsylvania’s state capitol is set to reach fever pitch, as unions plan to bus in hundreds of protestors this week to fight legislation that, if bad for union bosses, could be a boon to rank-and-file workers.

Pennsylvania is a longtime labor stronghold. Consider that a plaque directly across from the state capitol commemorates the unionization of government workers. But Pennsylvania lawmakers are now poised to pass a law to end automatic deduction of union dues from government employee paychecks.

from Full Focus:

Living on minimum wage

As U.S. fast-food workers strike in a bid to raise wages in the service sector, Reuters photographers in 10 countries document the lives of workers living on their country's minimum wage.

from MacroScope:

For workers, the long run has arrived in Latin America

The outlook for emerging market economies over the next decade looks more challenging as long-term interest rates start to bottom out in the United States. Here is another complicating factor: ageing populations.

That problem is not as serious as in Japan or Europe, of course. Still, investors probably need to cut down their expectations for economic growth in Latin America over the next years, according to a report by BNP Paribas.

from MacroScope:

U.S. job openings rise, but nobody’s hiring?

It’s a good news, bad news story: The U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover (JOLTS) survey in June showed an increase in job openings, but a decline in new hires. The ratio of unemployed Americans to each open job fell in June to its lowest level in over four years.

The number of job separations (government code for layoffs) also fell, mainly due to fewer layoffs. The June numbers suggest some retracing of the gains of the previous month or two, but does not erase them, says Stone & McCarthy Research Associates economic analyst Terry Sheehan.

from The Great Debate:

Rebuilding America’s high-wage economy

Good for President Barack Obama for emphasizing the need to restore America’s middle class. However, the actual proposals in his new summer offensive would not go very far toward that worthy goal.

America is moving, at an accelerating pace, toward an economy with tens of millions of poorly paid service jobs at one end, and a relatively small number of astronomically compensated financial jobs at the other. In between the fast food workers, who demonstrated this week for a living wage, and the hedge fund billionaires is a new creative class heavily based on the Internet. But the web entrepreneurs are too narrow a segment on which to rebuild a broad middle class.

  •