HR News - Toxic Culture at FDIC, Increased Minimum Wage, Strike Updates, and More
HREN News Roundup for the Week of 11/13
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This is a weekly roundup of the latest in HR News.
The week in HR news provided the public with an insider's view of a toxic workplace as a result of the Wall Street Journal's investigative reporting on the Federal Deposit Insurance Corp. (FDIC). Small businesses are contending with increased minimum wage, proving that solving the cost of living crisis requires confronting practical matters, too. Starbucks workers walked out, while United Auto Workers (UAW) reached an agreement with General Motors and Stellantis now. And HR Exchange Network contemplated the future of learning and development with two superstar guests. Read on to learn more:
Alleged Toxicity at the FDIC
A Wall Street Journal investigation revealed that FDIC Chair Martin Gruenberg failed to punish alleged harassment and discrimination, which made for a toxic workplace culture. Gruenberg says he was unaware of these complaints. But his own reputation has put him in the hot seat, and some Republicans on Capitol Hill grilled him on the accusations and are asking him to resign.
"Gruenberg himself has built a reputation for bullying and for having an explosive temper, the officials said," according to WSJ. "Over nearly two decades at the FDIC—including leading the agency from 2011 to 2018 and becoming chairman a second time last year—Gruenberg has berated and cross-examined staffers, questioned their loyalty and accused them of keeping information from him, [former FDIC officials] said."
Workplace culture is vital to retention but also recruiting. After all, when people hear about this toxicity, it hurts the employer brand.
Fallout from Minimum Wage Increases
In reaction to the leverage employees have gained, a reinvigorated labor movement, and a cost of living crisis, many states have increased their minimum wage. By 2024, California, Maryland, and Hawaii will be among the states with higher wages. But CNBC warns that the reality of this shift may be challenging for small businesses. California, in fact, will be enforcing a $20 per hour wage for workers at fast-food chains.
CNBC encapsulates the problem at the start of the article:
"Not only are wages generally up from year-ago figures given the hot labor market, but minimum wage rates are rising in many states as a result of new laws. These can be a double-whammy to small businesses already dealing with inflationary pressures. At the same time, businesses know they need to pay more to attract top talent."
This increase in pay will have widespread ramifications. McDonald's and Chipotle have already said they will have to raise prices for consumers. In the article, experts remind that wage increases like this are great for recruiting and retention, but must also recognize what may happen to the bottom line as the wages increase over time.
Labor Movement Update
On Red Cup Day, when Starbucks gives customers free reusable cups if they order a holiday drink, thousands of unionized employees walked out. Starbucks Workers United named the protest the Red Cup Rebellion, and they were aiming to make a point about ongoing complaints about staffing, scheduling, and other workplace issues, according to CBS News.
While unionizing among Starbucks workers across the United States has slowed, these efforts did gain media attention for the cause.
In the meantime, the UAW's six-week strike came to an end when union workers agreed to a deal with Stellantis. The deals with automakers, Ford, Stellantis, and General Motors, was historic. The Detroit Free Press has been covering the strike and negotiations.
HR Exchange Network Talks Future of L&D
A lively audience joined HR Exchange Network for an in-depth conversation on learning and development with Melanie Steinbach, CPO at MasterClass, and Lya Icaza, Head of Talent Marketplace at USAA. The discussion covered providing learning with little to no budget, helping people find time and the resources to take advantage of offerings, and the impact generative artificial intelligence (AI) will have moving forward. You can watch on demand now!
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