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Biden’s first veto retains ESG rule

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President Joe Biden


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Evan Vucci/Associated Press

The press corps says it sees signs that President Biden is “moving towards the middle” as he prepares to run for re-election. You wouldn’t know about it from his presidency’s first veto, which he used on Monday to overturn a bipartisan congressional resolution protecting retirement savings from politicized investment decisions.

Resolution used by the Congressional Revision Act to repeal a Department of Labor rule protecting pension funds that invest based on environmental, social, and governance criteria or ESG criteria. This rule essentially protects pension fund managers from lawsuits if their investment choices result in lower earnings or losses as the funds pander to causes of climate change or social justice. Funds are required by traditional fiduciary standards to maximize returns.

The House of Representatives passed the resolution 216–204 with the support of one Democrat, and it passed the Democratic-run Senate 50–46 as Democrats John Tester (Montana) and Joe Manchin (West Virginia) aligned themselves with the Republicans. Both Democratic senators are up for re-election in 2024 and now have a talking point about opposing the left of their party, even if they knew Mr. Biden would block the resolution.

Biden’s ESG rule is part of an administration-wide effort to bring more private capital under the control of progressive policies. He writes the rules to guide investment in climate and other democratic priorities, which often leads to misallocation of capital. Following the ESG rule, supervisory bodies will have to pay special attention to pension fund managers to see if their political investments prove unsuccessful and hurt retirees.

Journal editorial report: Paul Gigot interviews author Philip K. Howard. Images: Reuters/Zuma Press. Compiled by: Mark Kelly.

Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Court rules Uber and Lyft can continue to treat California drivers as independent contractors

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Sacramento, California. (AP) — App-based pickup and delivery companies like Uber and Lyft can continue to treat their California drivers as independent contractors, a state appeals court ruled Monday, allowing the tech giants to bypass other state laws requiring protection and benefits. for workers.

The ruling basically supports a voter-approved law called Proposition 22, which says drivers for companies like Uber and Lyft are independent contractors and are not eligible for benefits like paid sick leave and unemployment insurance. A 2021 lower court ruling declared Proposition 22 illegal, but Monday’s ruling reversed that ruling.

“Today’s decision is a victory for app workers and the millions of Californians who voted for Proposition 22,” said Tony West, Uber’s general counsel. “We are glad that the court respectfully treated the will of the people.”

The decision is a defeat for the unions and their allies in the state legislature, who in 2019 passed a law requiring companies like Uber and Lyft to treat their drivers like employees.

“Today, the Court of Appeals decided to side with powerful corporations, not workers, in allowing companies to buy off our state labor laws and undermine our state constitution,” said Lorena Gonzalez Fletcher, leader of the California Federation of Labor and former state legislator. Author of the law in 2019. “Our system is broken. It would be an understatement to say that we are disappointed with this decision.”

The decision was not a complete defeat for the unions, as the court ruled that companies cannot prevent their drivers from joining a union and collectively bargaining for better working conditions, said Mike Robinson, one of the drivers who filed the lawsuit challenging the proposal. 22

“Our right to associate and bargain collectively opens a clear path for drivers and deliveries to hold giant corporations accountable,” he said. “But make no mistake, we continue to believe that Proposition 22 – as a whole – is an unconstitutional assault on our fundamental rights.”

In 2019, the California Legislature passed a law that changed the rules about who is an employee and who is an independent contractor. This is an important distinction for companies because employees are subject to a wide range of labor laws that guarantee them certain benefits, while independent contractors do not.

While the law has applied to many industries, it has had the biggest impact on app-based car ordering and delivery companies. Their business is based on contracting people to use their own cars for people transportation and delivery. Under the 2019 law, companies will be required to treat these drivers as employees and provide certain benefits that will significantly increase business costs.

In November 2020, voters agreed to exclude app-based car ordering and delivery companies from the 2019 law by endorsing the ballot proposal. The proposal included “alternative benefits” for drivers, including a guaranteed minimum wage and health insurance subsidies if they work an average of 25 hours a week. Companies like Uber, Lyft and DoorDash have spent $200 million on the campaign to make sure it gets through.

Three Drivers and the International Union of Employees in the South, arguing that the proposal to vote was illegal in part because it limited the power of the State Legislature to change the law or pass laws on workers’ compensation programs. In 2021, a state judge agreed with them and ruled that companies like Uber and Lyft are no exception.

On Monday, a state appeals court overturned that decision, allowing companies to continue treating their drivers as independent contractors.

The decision may not be final. Employees International Union still has the option to appeal the decision to the California Supreme Court, which may decide to hear the case.

“We will consider all of these options as we decide how to ensure that the fight for these workers continues,” said Tia Orr, chief executive of SEIU California.

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What is Apple doing to the volume and mute buttons on the iPhone 15 Pro?

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Amazon cuts 9,000 more employees, adding to wave of tech layoffs: NPR

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Amazon CEO Andy Jassi said the company is cutting another 9,000 jobs, bringing the total number of cuts since November 2021 to 27,000.

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Amazon CEO Andy Jassi said the company is cutting another 9,000 jobs, bringing the total number of cuts since November 2021 to 27,000.

Mark Lennihan/AP

Amazon is cutting another 9,000 employees, adding to the massive layoffs taking place in a tech sector that is unsure of its economic future.

The layoffs will come “in the next few weeks,” according to CEO Andy Jassi, who announced the cuts in a memo shared with staff and uploaded to blog post on Monday.

“This was a difficult decision, but we believe it is best for the company in the long term,” Yassi wrote in a memo. He said the layoffs would mostly affect employees of the cloud platform, the human resources department that works with employees, advertising and the Twitch video service.

Earlier this year, Yassi announced that the company would lay off 18,000 employees. Last November he said there exceptions are coming and media coverage at a time when the expected number of layoffs is approaching 10,000.

The company has also put construction on its Arlington, Virginia headquarters, where it is expected to create more than 25,000 jobs in the region.

Like other big tech companies, Amazon’s workforce has exploded during the pandemic, peaking at 1.6 million employees in 2021.

Quick hiring “makes sense given what’s going on in our business and the broader economy,” Yassi said on Monday. “However, given the uncertainty of the economy we live in and the uncertainty that exists in the near future, we have decided to be more rational in our spending and headcount.”

Yassi said the company intends to make final decisions on the affected roles by “mid to late April.”

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