It’s Friday, and we have five labor-related stories that you might not have heard yet:
🍿🛒 Keep Your Eyes On This Grocery Drama:
One of this week’s most enduring LinkedIn trends promised “family drama” that swallowed “cult grocer” Market Basket. That promise delivered. The New England mainstay is in chaos after CEO Arthur Demoulas’ three sisters ousted him in what his spokesperson is calling a “coup.” The company’s board of directors and Demoulas’ sisters pushed back and characterized him as a “dictator.”
There’s plenty of history here, including a 2014 saga that saw Demoulas lose company control to his cousin before a six-week boycott, spearheaded by employees, resulted in his reinstatement. At that time, labor leaders were shocked to see Market Basket workers pull together and act without a union running the show. In response, a supervisor declared that the workers were “far stronger” than any union.
If you’re wondering whether Big Labor will take renewed interest, given the chaos, the UFCW is already circling.
⚖️🏙️🍎 New York Vs. The NLRB:
The NLRB’s lack of quorum continues with no word on when the Senate will move forward with Trump’s nominees. Additionally, Acting General Counsel William B. Cowen made clear that he’s not impressed with states pushing for jurisdiction over some labor disputes. Cowen has insisted that the Board’s backlog will be swiftly cleared once the Senate does its thing.
This week, NY Gov. Kathy Hochul signed a bill claiming to expand the authority of the NY State Public Employment Relations Board to oversee private-sector union elections. Almost immediately, Cowen declared his intent to sue New York for violating the Board’s “core jurisdiction.”
🚘🏛️👁️ Shawn Fain Can Breathe Easier... For Now:
The blustery UAW president received an unexpected reprieve from several locals’ attempts to oust him. This curious update came directly from watchdog Neil Barofsky, and most recently, Barofsky’s twelfth status report painted an unflattering portrait of Fain’s foul-mouthed outbursts, toxic leadership style, and retaliatory firings. The monitor’s investigation will continue with another status report due by December.
As of August, enough UAW locals had signed on to bring charges against Fain that an administrative trial threshold was met. Yet Barofsky declined to approve those charges while finding that the locals must restart the process due to a procedural error that one local team leader called “nitpicky.”
Meanwhile, the UAW’s compliance director, Marni Schroeder, resigned with no reason given after she appeared throughout the twelfth status report.
💰📱A Deep-Pocketed Union Joins The Boycott Club:
Last week, we touched upon Big Labor officially backing the ongoing boycott against Target. This week, the Communication Workers of America launched a coordinated effort against T-Mobile with the goal of convincing 10,000+ subscribers to drop their cell agreements by Nov. 1.
CWA’s motivation is complicated but self-serving. The union takes issue with T-Mobile partnering with Starlink to increase coverage areas. Starlink is owned by SpaceX, which shares a CEO, Elon Musk, with Tesla. And CWA appears to be irritated over SpaceX’s successful challenge to the NLRB’s structure and Tesla’s ability to remain union-free.
🧠☁️🤖 A historic deal and the biggest AI story of the week:
Speaking of Elon Musk, he might want to closely guard his title of World’s Richest Man. This week, Oracle Chairman Larry Ellison saw his value soar over the $100 billion mark, as opposed to Musk’s nearly $400 billion value, due to Oracle’s share price surging after news of a $300 billion deal with OpenAI involving data-center power.
Previously, OpenAI CEO Sam Altman revealed that ChatGPT is losing money on its $200 pro plan like there’s no tomorrow, but Altman expects to run a profit by 2029. This massive cloud contract is a sign that, despite rumors of an AI bubble, both companies are willing to gamble.