Posts Tagged ‘labor’
“I went down the street to the 24-hour grocery. When I got there, the guy was locking the front door. I said, ‘Hey, the sign says you’re open 24 hours.’ He said, ‘Yes, but not in a row.'”*…
As Max Burns reports, a wave of corporate consolidation is reshaping the grocery industry; today, the U.S. has one-third fewer grocery stores than it did 25 years ago. The result is that just four corporations—Walmart, Kroger, Costco, and Albertsons—control more than two-thirds of the U.S. grocery market, This is squeezing workers, limiting competition, and giving this handful of retailers unprecedented control over what Americans pay for food…
If it feels to you like American consumers have fewer choices than ever before, your mind isn’t playing tricks on you. Federal regulators are approving corporate mega-mergers at the fastest rate since the 1980s. Consumers are feeling those industry-spanning consolidations everywhere, as hardly a sector of American life has escaped Wall Street’s goal of building the largest and most powerful corporate conglomerates in world history.
From power utilities and artificial intelligence to broadcast news networks and railroads, a few massive corporate players have come to dominate American commercial life in ways not seen since the Gilded Age trusts of the 19th century. Those consolidations have generated historic profits for executives and major shareholders while working families are faced with lower quality goods and services, fewer options, and a hostile labor market unfairly skewed toward the interests of the ultra-rich.
Democrats have been quick to criticize some of the nation’s biggest mergers as anti-worker and anti-consumer, but one critical sector of the U.S. economy has managed to escape widespread public criticism: grocery stores. Thanks to a record rise in special interest cash donations to both Democrats and Republicans, grocery-industry lobby groups have managed to keep prices high, wages low, and consumer choice limited while avoiding federal policymakers’ crosshairs. The result is an invisible crisis in the nation’s food industry that threatens to reshape how and what Americans eat.
In a corporate landscape defined by Republican deregulation, America’s grocery stores and food suppliers are consolidating despite active federal laws explicitly intended to prevent anticompetitive behavior. Perhaps the most important of those laws is the Robinson-Patman Act of 1936, or RPA, also known as the Anti-Price Discrimination Act. For decades, RPA ensured fair competition by banning food suppliers from charging different prices to different stores; at least it did until the Reagan-era Federal Trade Commission largely stopped enforcing it in the 1980s. Even though RPA is still the law of the land, food suppliers like Pepsi now routinely ignore the law without consequence.
“Big corporations have buying power, and they can oppress and dictate to producers what they want to pay for crops,” Rhode Island Lt. Gov. Sabina Matos told me. “A corporation can come to a farmer and say ‘we’ll pay you this price for potatoes, but you can’t give that price to anyone else,’ so they fix prices in a way that hurts independent supermarkets and independent businesses.”
Megacorporations aren’t subtle about flexing their market power to fix prices in ways that protect other megacorporations. Last year President Donald Trump’s FTC dismissed an RPA claim against PepsiCo which alleged that Pepsi illegally offered grocery chain Walmart unfair pricing discounts while charging smaller chains more for the same products. When independent grocery stores undercut Walmart by lowering the price of Pepsi products, PepsiCo allegedly responded by raising wholesale prices or refusing to do business with the smaller stores until they raised prices above those at Walmart.
As independent grocery stores struggle, they become more likely to sell out to larger national chains, leading to consolidation that makes both prices and employee wages less competitive. As president of the United Food and Commercial Workers International Union Local 3000, Faye Guenther represents over 50,000 grocery and retail workers across the Pacific Northwest. Guenther has spent years fighting the growing imbalance between rising prices and falling wages. Now, she says, things have reached a crisis point for regular Americans…
Read on for Burns’ looks at the impact on workers (TLDR: fewer jobs, lower wages), availability of stores (TDLR: or its opposite, food deserts), and food prices (TLDR: they’re rising), and for his suggested remedies.
The painful reality behind the joke “I’m getting stronger with age. I can now lift $100 worth of groceries with one hand!”: “America’s Grocery Monopoly Problem,” from @themaxburns.bsky.social in @damemagazine.bsky.social.
See also: “Grocery Retail: The Last Link in the Monopoly Chain.”
Also apposite: “Big Food Versus the People” (what court battles reveal about the ultra-processed food industry’s corporate litigation strategies). Further to which: “Is the recycling symbol free speech? A judge just ruled it could be“…
A pioneering California law meant to sharply limit use of the familiar “chasing arrows” recycling symbol has been blocked by a federal judge who said it probably violates the First Amendment.
In a preliminary injunction issued earlier this month, U.S. District Judge William Hayes halted enforcement of SB 343 after food, packaging and retail groups sued, finding that key provisions were “unconstitutionally vague” and likely infringed protected commercial speech. Enforcement of the law, passed in 2021, was expected to start this fall.
The decision is a blow to environmental advocates, who had hoped to remove the familiar symbol from a huge array of plastic products, in line with a statewide study showing that only a fraction are widely collected and actually recycled. SB 343 said only goods and packaging accepted by recycling programs serving at least 60 percent of Californians and then actually sorted for recycling — not collected and thrown away — could bear the chasing arrows.
Hayes’ constitutional reasoning surprised supporters of SB 343 because similar arguments against environmental marketing regulations have historically struggled in court….
Of course, there’s always eating out… but of course, that’s got its own issues: “The restaurant business is changing beyond recognition,” gift article from @economist.com.
Oh, and we might note that this is National Farmers Market Week.
* Steven Wright
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As we chow down, we might recall that it was on this date in 1930 that the officially-adjudicated “first supermarket” opened: King Kullen in Queens, New York.
Grocery chains had been around since 1859, when The Great Atlantic & Pacific Tea Company (A&P) was established. But they rarely sold fresh meat or produce and relied on the old mercantile system of clerks puling items from shelves on request. As long-time readers may recall, the first self-service grocery store was the Piggly Wiggly, which shifted to self-serve in 1916.
The first modern supermarkets appeared just over twenty years later, offering a full range of food items, beverages, and household items under one self-service roof, often with an emphasis on low prices as well as convenience. There were a number of contenders for the “first supermarket” crown…
To end the debate, the Food Marketing Institute in conjunction with the Smithsonian Institution and with funding from H.J. Heinz, researched the issue. They defined the attributes of a supermarket as “self-service, separate product departments, discount pricing, marketing and volume selling.” They determined that the first true supermarket in the United States was opened by a former Kroger employee, Michael J. Cullen, on 4 August 1930, inside a 6,000-square-foot former garage in Jamaica, Queens in New York City. The store King Kullen, operated under the logic of “pile it high and sell it cheap.” The store layout was designed by Joseph Unger, who originated the concept of customers using baskets to collect groceries before checking out at a counter. Everything displayed for sale in the store “had prices clearly marked”, meaning that consumers would no longer need to haggle over prices. Cullen described his store as “the world’s greatest price wrecker.” At the time of his death in 1936, there were seventeen King Kullen stores in operation. Although Saunders had brought the world self-service, uniform stores, and nationwide marketing, Cullen built on this idea by adding separate food departments, selling large volumes of food at discount prices and adding a parking lot. Moreover, the supermarket format as pioneered by King Kullen was not only cheap, but convenient, in how it combined so many different departments under one roof which had formerly required trips to separate stores. – source
“To the victor go the spoils”*…
… Yes… but Maitreyi Anantharaman asks, which victors. A Sunday football installment…
In late July, before a game against the Boston Red Sox, Bryce Harper sat slumped in a chair in the Philadelphia Phillies clubhouse, a baseball bat in hand. Philadelphia was the latest stop on Rob Manfred’s leaguewide speaking tour; ahead of a CBA negotiation that virtually everyone in baseball expects to involve a 2027 work stoppage, the MLB commissioner spent the summer visiting all 30 teams, trying to get players on board with his plans to restructure the league’s economics. When the subject of a salary cap came up late in the meeting, Harper rose from his seat. He walked closer to Manfred until their noses almost touched, and told the commissioner that if Manfred wanted to talk salary cap, he could “get the fuck out of our clubhouse.”
A couple months later, at the Minnesota Lynx’s end-of-season press conference, Napheesa Collier had some words for her league’s commissioner, too. The WNBA is in the thick of labor talks these days: The league and players’ union recently agreed to extend their collective bargaining negotiating period through January. Collier’s sport is undergoing its own economic transformation. Amid a women’s basketball boom, WNBA team prices have skyrocketed, and the league’s new media rights deal is valued at a figure six times the old one. Today’s labor fight pits players who feel they’ve driven this growth against the owners who feel they’re owed for years of losses. In Collier’s telling, commissioner Cathy Engelbert is a poor steward for the moment, a leader who takes the WNBA’s talent for granted. “The league believes it succeeds despite its players, not because of them,” Collier said, adding later that “the best players in the world” had “the worst leadership in the world.” The measure she took was public and not so lurid a confrontation as Harper’s—no baseball bats involved. But the basic idea was the same: to establish whose clubhouse it really is.
For an emblem of player-commissioner relations in the NFL today, the New York Times reporter Ken Belson writes, look to the “Roger Goodell Bro Hug.” [see the picture above] Every spring, the newest first-round picks bound across the NFL draft stage and wrap their arms around the commissioner. Sometimes they lift him off his feet. A hug Goodell shared with Baltimore Ravens draftee Malaki Starks this past April lasted 21 seconds. Speaking to Belson, an agent laments the annual show of affection for management, though he can’t help but admire the bleak triumph it signals: “You have to give kudos to the NFL for making it that way.”
Belson’s new book, Every Day Is Sunday: How Jerry Jones, Robert Kraft, and Roger Goodell Turned the NFL into a Cultural & Economic Juggernaut, is a sobering account of how the NFL made the world this way, its way, totally in its image…
“Whose league is it anyway?” from @maitreyiaa.bsky.social in the always-illuminating @defector.com.
Apposite: “Big Blue Machine“- on big money in sports and what it can buy (“When the Dodgers spend nearly $500 million on salaries, including deferred payments and tax penalties, one sees the American way of life come into focus anew: a few at the top thriving in the abundance of Ezra Klein’s wet dreams, the rest of us surviving on scraps…”)
And on a different Sunday institution: “The Legacy of Nicaea” from @hedgehogreview.bsky.social.
* William L. Marcy (a U. S. Senator in 1832, justifying President Jackson’s “spoils system”)
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As we ponder plutocrats, we might spare a thought for George “The Gipper” Gipp; he died on this date in 1920. Notre Dame’s first All-American football player, he succumbed at age 25 to a streptococcal throat infection and pneumonia three weeks after a victory over Northwestern in his senior season and was the subject of Rockne’s “Win just one for the Gipper” speech. In the 1940 film Knute Rockne, All American, he was portrayed by Ronald Reagan.
“Black money is so much a part of our white economy, a tumour in the centre of the brain – try to remove it and you kill the patient.”*…
The informal, or shadow, economy (and here and here)– economic activity, both casual and criminal, that is neither recorded nor taxed– is a feature of life virtually everywhere. Dorothy Neufeld (in Visual Capitalist) unpacks the league table…
The world’s $12.5 trillion informal economy covers nearly every corner of the world, seeing the highest concentration in emerging economies.
Yet in absolute terms, China, the U.S. and India are home to the largest black markets—covering everything from street vendors to illegal activities that evade governmental oversight. Overall, this generates lower tax revenue and poorer working conditions given the absence of worker protections, leaving millions exposed to poor working conditions…
… Since 2004, workers employed in China’s informal economy have nearly doubled, reaching approximately 200 million.
Driving this trend are jobs are found in the labor-intensive services sector, such as drivers, nannies, and roadside repairmen. As a result, China’s income tax revenue accounts for about 6% of GDP—far lower than the 24% OECD average.
Ranking in second is the U.S. shadow economy, valued at $1.4 trillion. Overall, states with lower real GDP and higher regulatory burdens tend to have more active underground economies.
Meanwhile, Brazil leads in Latin America, with a shadow economy valued at $448 billion. In Europe, Germany is home to the largest at $308 billion, equal to 6.8% of GDP…
Ranked: “The World’s Biggest Shadow Economies.”
* Rohinton Mistry, Family Matters
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As we contemplate commerce, we might recall that it was on this date in 1988 that three 50 pound snapping turtles were found in a Bronx, New York sewage treatment plant. They had probably been pets that were flushed down the toilet when very small. One might imagine that this story helped spawn the Teenage Mutant Ninja Turtles, but the Ninja Turtles are actually a bit older than that. Comic book artists Kevin Eastman and Peter Laird published the first Ninja Turtles comic in 1984.
“Constant attention by a good nurse may be just as important as a major operation by a surgeon”*…
A recent (R)D unpacked a recent Gallup survey of public trust in different professions/ocupations; the undisputed champion, nursing…. to which, friend MK responded: “What’s worse than 24 out of 25 people not trusting members of Congress is one out of four not trusting nurses.”
Edward Ongweso Jr. has a possible explanation– one that has little to do with nurse and all-too-much to do with the deterioration of the system of which they’re a part…
Hello everyone, I’ll keep this bit short this time! Thanks for all the emails with stories about your own experiences in Vegas, with gambling addiction, and with CES in response to my last piece, I read them all and responded to most except the ones pitching me Guaranteed Parlays That Will Hit! Thanks also for subscribing, we’ve jumped a bit and are just shy of 4,400 subscribers. If you like what you’ve read and want to support me further, you can become a paid subscriber for $7 a month or $70 a year. What do you get in return? My undying love, some recommendation posts every now and then, and paywalled essays/rants just as long as this one! Now, let’s get to today’s essay.
I have long believed that one of the greatest threats we face is the proliferation of the on-demand labor platform. The so-called “gig economy” is one of the larger altars to greed and misery in our civilization where millions of people are sacrificed in order to grow Smaugian hoards that are then transmuted into this or that form of power.
My earliest introduction to this was through the work of labor ethnographer and legal scholar Veena Dubal via her law journal article “The Drive to Precarity,” which maps out how militant workers turned San Francisco’s precarious taxi sector into a stable line of work, how companies responded with a wave of deregulation and de-unionization that immiserated workers, and how Uber sealed the deal in returning ride-hail to its earlier insecure form: poor working conditions and starvation wages, with every possible cost (healthcare, fuel, maintenance, etc.) offloaded onto workers and consumers.
Key forms of on-demand labor—namely, ride-hail and food delivery—have proliferated over the past few years, but not because they are particularly profitable or innovative business ventures. Most of them either have no real path to profitability, report dubiously calculated profits, or are operating illegally in hopes of realizing or sustaining them after sufficient lobbying and monopolization and exploitation of consumers/workers. The lazy and incurious view has been that they will grow into profitability, but the transparent reality is that the firms at the vanguard of the gig economy have thrived because they take advantage of a few key phenomena: worker misclassification, algorithmic discrimination, anti-competitive capital-intensive strategies, impressive public relations, robust political lobbying, and shoddy journalism, to name a few…
[Ongweso unpacks the history of ride-hailing apps and of the tactics– some legitimate, some questionable, and some plainly illegal– the industry has used to prevail. Then he turns to nursing…]
… As[ Shawn Carolan, a partner at Menlo Ventures and early investor in Uber] observed, however, ride-hail and delivery are not the only places where the “business model” at the heart of on-demand labor can be applied.
Over the past few years, nursing has emerged as a juicy target for investors and firms eager to liberate entire industries of antiquated regulatory frameworks. Last month, the Roosevelt Institute published a great report on what the application of the on-demand model will mean for nurses and it paints a grim picture. While some hail the emergence of an “Uber for nursing” model as a salve for our nursing shortage, Katie J. Wells and Funda Ustek Spilda detail how these apps reliably degrade working conditions, wages, and care standards.
These apps encourage nurses to work for less pay, fail to provide certainty about scheduling and the amount or nature of work, take little to no accountability for worker safety, and can threaten patient well-being by placing nurses in unfamiliar clinical environments with no onboarding or facility training. On-demand nursing platforms are also using the Uber playbook to lobby state legislatures in an attempt to exempt themselves from existing labor regulations.
I’ll be going through the report section by section to highlight key points as I think the report is phenomenal, but I encourage you to read it in full (linked above).
The premise of the “Uber for nursing” apps is relatively simple: lets use algorithmic systems to managing the scheduling, staffing, and management at medical facilities. For understaffed workplaces looking to cut costs and corners, this is attractive. For nurses and nursing assistants who want more control over their work, this is attractive. But this is especially enticing for investors who drool anytime a firm compares itself to Uber. Take ShiftMed—one of the darlings of this sector and a subject of the Roosevelt Institute report—which has raised hundreds of millions (but declines to share its valuation): $47 million in a May 2024 venture round, $200 million in a February 2023 round, $45 million in October 2021, and an early $6 million boost in an August 2019 round. What concretely are firms like ShiftMed offering to draw financing like this?
After a nurse downloads an on-demand nursing app and submits the requisite documents, they can use the app to indicate their interest in a 6-, 8-, or 12-hour shift at a hospital, nursing home, assisted living facility, surgical center, dental office, or, in some states, correctional facilities. An algorithmic scheduling software program, which is the heart of these new companies, then approves the worker for a shift, notifies both the medical facility and the worker, allows the worker to clock in and out, and, finally, sends a paycheck.
The on-demand nursing industry promises hospitals and medical administrators a different set of controls, namely the capacity to seamlessly staff facilities, reduce manager workloads, and lower labor costs.
On paper, this sounds lovely—the digital disruption of an old rickety system full of middlemen, inefficiencies, misallocation, overcharging, yadda yadda ya. But what’s the reality on the ground? Wells and Spilda found:
… serious safety and health risks for workers and patients. The nurses and nursing assistants who use these apps must pay fees to bid on shifts, and they win those bids by offering to work for lower hourly rates than their fellow workers. Poor internet or cell service in rural areas can cause the apps to fail, resulting in missed paychecks for work performed. These apps also rate the nurses they hire based on facility feedback and internal algorithmic determinations. If a worker must cancel a shift due to sickness or personal conflict, their rating goes down, and they often lose out on future shifts or can be banned from the app altogether. In at least one case, a nursing assistant went into work at a hospital while sick with COVID-19 because she could not figure out how to cancel a shift without lowering her rating. At most hospitals and medical facilities, no orientations are required for gig nurses and nursing assistants. Workers do not know where supply closets are located, how to access patient portals with medical histories and current medication lists, and whom to contact in the chain of command. With gig nursing, there is often little to no continuity of care. Despite hospitals’ attempts to automate nursing, care work is inherently tricky to de-skill and predict. Shifts do not neatly end when the apps say they do as, of course, patients’ health-care needs do not end just because the clock says they should. Human frailty—the essential subject of nursing—defies algorithmic management.
As the report will detail, gig nursing has already proven itself to be an unmitigated disaster and we are still relatively early in its assault on our lethargic healthcare system…
[Ongweso offers more chilling detail…]
… Often the deployment of new technology is used as cover to rollback reforms and regulations that have made old levels of profiteering unrealizable or outright illegal. That tends to be a function of who is steering the design, development, and deployment of said technologies. It is one thing when managers and financiers are in the drivers seat, and it would be another thing entirely if care workers were in control. It is not clear to me why anyone other than nurses should be in control of what sort of technology is introduced into their workplaces, how this technology is designed, why it is deployed, and when it is used. To close out with Wells and Splinda:
“It is important to not lose sight of the enormous amount of skill, coordination, understanding of human vulnerability and frailty, and treatment of patients with utmost decency required to provide good quality care. Technology could provide solutions to automate and unburden the nurses and health-care workers from the everyday management tasks of their work; however, decision-making around such solutions should include the nurses themselves, from design to deployment.”
The gig economy’s metastasis and its threat to healthcare: “Uber’s Bastards,” from @edwardongwesojr.com. Eminently worth reading in full.
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As we contemplate care, we might send healing birthday greetings to Arthur Nicolaier; he was born on this date in 1862. A physician and bacteriologist, he isolated the tetanus bacterium and developed a successful cure for tetanus.
Nicolaier discovered that the tetanus bacterium lived in soil. Because of its presence in earth, it is responsible for infection from dirty wounds, which was a particularly significant issue in the cases of wounded soldiers during WW I. The toxin secreted by this bacterium, Clostridium tetani, travels along nerves to the spinal chord, causing increasingly severe, often fatal spasms of the head and neck and jaw– from which came the common name of the affliction: “lockjaw.” Thanks to Nicolaier, from 1915 injured soldiers– and any other sufferer– received an anti-toxin.
In the mid-1920s a tetanus vacine was developed. It has subsequently been improved, and has successfully warded off infection in those areas where it is administered. In 2013, it caused about 59,000 deaths worldwide—down from 356,000 in 1990; in the United States, from 2000 through 2007, an average of 31 cases were reported per year. Nearly all of the cases in the United States occur in unimmunized individuals, or individuals who have allowed their inoculations to lapse.
“Private equity has absolutely no reason to exist. The private equity holder has all the upside and the banks all the downside.”*…
As private equity investors become much more active in the Global South, Farwa Sial adds local economies and their labor forces to the list of those shouldering the risks of falling into the hands of operators whose m. o. is “slash and burn” (or here). Her point of reference is, as you’ll see the U.K., where private equity has wreaked havoc with essential services. But she might well have cited examples from U.S. (e.g., healthcare [or here] or infrastructure [or here]…
The effectiveness of private equity has been a subject of ongoing debate in countries of the Global North. There is substantial evidence highlighting the extractive practices associated with private equity operations across Western nations. Examples include the decline of the British high street and the financial instability of local councils in the UK, particularly in the provision of child care. Similarly, in the United States, private equity has been linked to the attrition of an already fragile healthcare system. In France, Germany and the UK., its influence has contributed to the deterioration of care homes, raising significant concerns about its broader social and economic impact.
In a recent blog, Michael Roberts characterized private equity as “vampire capital“, encapsulating the widely recognized critique that private equity firms function through a rentier model. These firms are frequently associated with practices such as asset stripping, worker lay-offs, and opting for excess leverage that increases the debt burdens of their acquisitions, all while failing to provide compelling evidence of value creation. This perspective aligns closely with earlier criticisms of private equity. During the 2000s, private equity operations were similarly likened to a swarm of locusts, reflecting widespread disapproval of their extractive and often detrimental economic practices.
In summary, such analogies emphasize the aftermath of private equity operations, leaving behind “carcasses and barren landscapes.” Nevertheless, the evidence of a hollowed-out socio-economic landscape in the Global North has not deterred the international expansion of private equity into countries of the Global South. On the contrary, ongoing reports of American private equity capturing British markets have emerged in tandem with the globalization of Western private equity. In so-called “emerging markets,” this expansion manifests in various forms, including an enthusiasm for deploying “moral money” through international development initiatives.
This article examines the role of private equity in Global South countries, focusing on three key characteristics: the escalation of indebtedness, the weakening of public markets, and the public subsidy function of development finance in facilitating private equity investments…
Exporting pain: “Private Equity in the Global South: Locusts? Vampires? The contagion effect” by @farwasial in @DevEconNetwork.
* Nassim Nicholas Taleb
(Image above: source)
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As we muse on models of modernization, we might recall that on this date in 1995, the Japanese Nikkei index fell more than 1,000 points from 19,241 to 17,785 as traders panicked over the devastation of the Hanshin (or Kobe) Earthquake. In total, the Nikkei had fallen 7.6% since the earthquake on January 17th.
The decline was the leading trigger of the failure of the 232-year-old Barrings Bank. A young trader, Nick Leeson, had speculated on Japanese derivatives. By this date in 1995, Leeson had make big bets that the Nikkei would remain between 19,000 and 21,000. As the market sank Leeson added to his positions, eventually accumulating over 60,000 futures contracts. Within a month Leeson quit the bank and was on the run (eventually he was arrested and served 3 years in jail). The losses he accumulated took Barings down; it failed and was sold to ING for 1 pound on March 6th.
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