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Productitivity

High costs, slowing China: VWs perilous road ahead [Video]

After Volkswagen’s bombshell announcement earlier this month that it could close factories in Germany for the first time, company management and unions will begin tense talks on a new pay deal Wednesday. Here are some of the key challenges facing Europe’s biggest car maker: – High costs – Volkswagen has repeatedly stressed that its costs

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Productitivity

Boeing makes a ‘final offer’ to striking workers, but union says it’s not good enough [Video]

Boeing said Monday it made a “best and final offer” to striking machinists that includes bigger raises and larger bonuses, but the workers’ union said the proposal isn’t good enough and there won’t be a ratification vote before Boeing’s deadline at the end of the week.The union complained that Boeing publicized its latest offer to 33,000 striking workers without first bargaining with union negotiators.”Boeing does not get to decide when or if you vote,” leaders of the International Association of Machinists and Aerospace Workers district 751 told members Monday night. “The company has refused to meet for further discussion; therefore, we will not be voting” on Friday, as Boeing insisted.Boeing said that after two days of talks last week with federal mediators failed to produce an agreement, “we presented a best and final offer that made significant improvements and addresses feedback from the union and our employees.”The new offer is more generous than the one that was overwhelmingly rejected earlier this month. The company said the offer includes pay raises of 30% over four years, up from 25% in the first proposal. The union originally demanded 40% over three years.The new offer and labeling it a final one demonstrates Boeing’s eagerness to end the strike that began Sept. 13. The company introduced rolling furloughs of non-unionized employees last week to cut costs during the strike.The strikers face their own financial pressure to return to work. They received their final paychecks last week and will lose company-provided health insurance at the end of the month, according to Boeing.The company said its new offer is contingent on members of the machinists’ union in the Pacific Northwest ratifying the contract by late Friday night, when the strike will be a little over two weeks old.The union, which represents factory workers who assemble some of the company’s best-selling planes, waited several hours before pushing back Monday night.”This proposal does not go far enough to address your concerns, and Boeing has missed the mark with this proposal,” the union told members. The group added that it will survey members about the new offer.Boeing’s latest offer includes upfront pay raises of 12% plus three annual raises of 6% each.It would double the size of ratification bonuses to $6,000. It also would keep annual bonuses based on productivity. In the rejected contract, Boeing sought to replace those payouts with new contributions to retirement accounts.Boeing said average annual pay for machinists would rise from $75,608 now to $111,155 at the end of the four-year contract.The new offer would not restore a traditional pension plan that Boeing eliminated about a decade ago. Striking workers cited pay and pensions as reasons why they voted 94.6% against the company’s previous offer.Boeing also renewed a promise to build its next new airline plane in the Seattle area — if that project starts in the next four years. That was a key provision for union leaders, who recommended adoption of the original contract offer, but one that seemed less persuasive to rank-and-file members.The strike is likely already starting to reduce Boeing’s ability to generate cash. The company gets much of its cash when it delivers new planes, but the strike has shut down production of 737s, 777s and 767s. Work on 787s continues with nonunion workers in South Carolina.On Friday, Boeing began requiring thousands of managers and nonunion employees to take one week off without pay every four weeks under the temporary rolling furloughs. It also has announced a hiring freeze, reduced business travel and decreased spending on suppliers.The money-saving measures are expected to last as long as the strike continues.

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Productitivity

NASDA: Extension is the core to advancing production agriculture [Video]

Protecting funding for University extension is crucial to agriculture and advancing research. Oklahoma State University Professor of Plant and Soil Sciences Brett Carver says extension services help farmers with education and production, but the solution is becoming more complex.  “We have productivity expectations,” he says. “We have to meet not just a growing population, but it’s a […]

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Productitivity

The benefits of a four-day workweek, according to a champion of the trend [Video]

Companies exploring the option of letting employees work four days a week hope to reduce job burnout and retain talent seeking a better work-life balance, according to the chief executive of an organization that promotes the idea.Video above: Many Americans think they’ll never retireThe trend is gaining traction in Australia and Europe, says Dale Whelehan, CEO of 4 Day Week Global, which coaches companies through the months-long process of shortening their employees’ work hours. Japan launched a campaign in August encouraging employers to trim work schedules to four days.American companies haven’t adopted four-day weeks as broadly, but that could change. Eight percent of full-time employees polled by Gallup in 2022 said they work four days a week, up from 5% in 2020.The Associated Press spoke with Whelehan about the reasons why companies might want to consider the change. His comments have been edited for length and clarity.Q: Why should organizations switch to a four-day workweek?A: The bigger question is, why shouldn’t they? There’s a lot of evidence to suggest we need to do something fundamentally different in the way we work. We have issues of burnout. We have a recruitment and retention crisis in many industries. We have increased stress within our workforce, leading to health issues, issues with work-life balance, work-family conflict. We have people sitting in cars for long periods, contributing to a climate crisis. We have certain parts of the population that are able to work longer hours and therefore be rewarded for that, creating further inequity within our societies. Lastly, we look at the implications that stress actually has on long-term health. We know that it’s linked to issues like cardiovascular disease, to cancer, to diabetes. So stress is something not to be taken lightly, and it’s only rising in our world of work.Q: Why is the 40-hour workweek so common?To understand where we are now, let’s take a step back into pre-industrial times. My granddad was a farmer, worked seven days a week and was required on-site all the time. It was a lot of long hours, but also he had a lot of autonomy.By the time my dad entered the workforce, he was a technician in a mechanical role. And he was expected to produce products on a large scale. As a result he wasn’t given the rewards from farming, but was given a salary. That change from my grandfather’s time to my dad’s brought about the birth of a discipline known as management. And management, led by Frederick Taylor, was looking at the relationship between fatigue and performance. A lot of scientific studies were done to try to understand that relationship, leading to the need for a five-day week as opposed to a six-day week. By the time I entered into the workforce, we no longer had a very physical, laborious workforce. It’s highly cognitive and highly emotional.The fundamental physiological difference is that our brain as a muscle can’t withstand the same level of hours of work as our muscles in our body might be able to. So it’s that mismatch between an outdated work structure of 40 hours, rooted in very physical labor, and what is now a highly cognitive workforce.Q: How can companies increase revenue while employees work fewer hours?A: The reduction of working time brings about productivity gains by people having naturally more time to rest and recover, allowing them to come back into a new week more engaged and well-rested. That’s one way in which you see productivity gains. The second is the fundamental shift that organizations undergo while transitioning to a four-day week.When we work with organizations, we use what’s called a 100-80-100 principle. So 100% pay for 80% time for 100% output. We ask organizations to design their trials in that sort of philosophy: How can you keep your business at the same level or improve while working less? The fundamental change we see is, let’s move away from thinking about productivity as how much time it takes to get something done, versus focusing on what outcomes we know drive businesses forward.Q: How does a four-day workweek support equity?A: Disproportionately high amounts of part-time workers are female. As a result, women typically take a reduction in pay. That’s despite the fact that, based on the evidence that we’ve seen in trials, those part-time workers are producing the same output as their five-day-week counterparts.In four-day week trials, everyone embarks on the journey. So we see men taking on greater levels of responsibilities in household or parenting responsibilities.The alternative situation is women take part-time work, reduce their pay. Men have to work longer hours at a higher salaries and more stressful jobs in order to make up the deficit. … It just creates this vicious cycle.Q: What kinds of work could potentially be dropped to increase productivity?A: Meetings. We are addicted to meetings. It’s just gotten worse and worse since the pandemic. I think a lot of that comes from a culture of indecisiveness. There’s a sense of not wanting to make decisions, and therefore delaying the process or involving many people in the process so that everyone has a responsibility, and thus no one has responsibility. And that is not good when it comes to the greater issue of productivity.