Human Times

North American Edition

3rd September 2025

THE HOT STORY

U.S. firms boost profits via efficiency

American companies are beating earnings forecasts by cutting costs, raising prices, and relying on automation rather than consumer spending. C.H. Robinson’s CFO Damon Lee said: “The outcome of those transformations means less head count, more productivity,” after reporting 35% productivity gains since 2022. Monster Beverage and Estée Lauder also cut jobs to lift profits, while Spectrum Brands cited tariffs and weak demand. Despite S&P 500 earnings per share rising 13% in Q2, worker surveys show falling morale, with many asked to do more with less. Analysts warn prolonged strain could trigger a downturn, erode long-term resilience, and weaken consumer confidence.

Wall Street Journal

WORKFORCE

U.S. consumer sentiment declines on weaker economic outlook

U.S. consumer sentiment declined to a three-month low this month, as tariff-related concerns about the economic outlook and inflation persisted. The University of Michigan's final August sentiment index dropped 3.5 points from July to 58.2, below a preliminary reading of 58.6. Consumers expect prices to rise at an annual rate of 4.8% over the next year, up from 4.5% last month, and see costs rising at an annual rate of 3.5%. Unease about employment and household finances risks causing consumers, the primary source of economic growth, to pull back. “Buying conditions for major purchases like durable goods and vehicles both worsened this month,’’ Joanne Hsu, director of the survey, said in a statement. “Growing shares of consumers mentioned high prices as well as tax/tariff considerations as factors weighing on buying conditions for cars in particular.”

Bloomberg

Middle class vibe has shifted from secure to squeezed

The Wall Street Journal's Katherine Hamilton and Alison Sider report that confidence among America’s middle class is slipping, and with it, the sense that the economy is holding steady. After a brief uptick earlier this summer, households earning $50,000 to $100,000 a year have joined lower earners in tightening belts and rethinking spending. The authors note that consumers are cutting restaurant visits, choosing cheaper brands, and delaying trips. Meanwhile, wealthier Americans continue to travel, dine and shop as if little has changed. They conclude that the divide has rarely felt wider, leaving the “squeezed middle” carrying the weight of unease.

Wall Street Journal

Washington ranks high for workers

According to Oxfam America's “Best States to Work in the U.S. 2025” index, Washington ranks fifth among all states, scoring 76.79 out of 100. The report evaluates states based on wage policies, worker protection, and rights to organize. Washington excelled in wage policies, coming in second, and ranked fourth for worker protection. Oxfam America stated: “Our ranking system is meant to inspire a race to the top for all states.” The top five states for workers include Washington, D.C. at first, followed by California, Oregon, New York, and Washington. Conversely, North Carolina ranked last with a score of 5.83.

The Columbian

LEGAL

Colgate settles pension lawsuit for $332m

Colgate-Palmolive has agreed to a $332m settlement to resolve a class-action lawsuit involving pension miscalculations affecting 1,177 employees. Filed in Manhattan federal court, the preliminary settlement allocates approximately $232.7m to employees after legal costs. The dispute stems from Colgate’s 1989 shift to a cash balance pension plan and a 2005 amendment that plaintiffs claimed still underpaid annuity benefits. Litigation began in 2007, with this case filed in 2016. Though denying wrongdoing, Colgate stated it settled to “avoid the risk and expense of more litigation.” Funds were reserved in 2023 and 2025.

Reuters

Court rulings complicate joint employer rules

The U.S. Labor Department (DOL) faces significant challenges in clarifying joint employer status under the Fair Labor Standards Act. Following the publication and subsequent withdrawal of a regulatory plan in August, businesses are left without clear guidelines. Noah Finkel from Seyfarth Shaw LLP remarked: “Courts are going to tend not to defer to such a regulation,” indicating a potential legal backlash against any new DOL rule. The issue is critical as many companies, including McDonald's and Uber, rely on contractors and franchises. Daniel Ocampo from the National Employment Law Project highlighted the difficulty in holding subcontractors accountable for wage violations, stating, “they're essentially impossible to hold accountable for some of these violations.” The DOL's forthcoming rule may not resolve the existing legal discrepancies across various jurisdictions.

Bloomberg Tax

Starbucks faces legal setback in Missouri

Starbucks Corp. has been found to have illegally instructed employees at a Missouri café to refrain from displaying pro-union materials, according to a ruling by Administrative Law Judge Christine Dibble. The judge dismissed Starbucks' claim that the National Labor Relations Board (NLRB) lawyers were engaging in improper serial litigation, stating that the agency is entitled to pursue multiple allegations against the company. The ruling highlights the ongoing scrutiny of Starbucks' enforcement of solicitation and distribution rules, with Dibble asserting that "just because NLRB lawyers litigated a charge... doesn't block agency lawyers from going after the company." This decision adds to the mounting legal challenges facing Starbucks regarding its treatment of union activities.

Bloomberg Law

AT&T pension battle takes a turn

AT&T Inc. is edging closer to resolving a legal challenge from retirees regarding a controversial transaction that transferred the responsibility for nearly 100,000 pensions to an insurance company. Magistrate Judge Paul G. Levenson stated in a nonbinding recommendation that the retirees failed to demonstrate that AT&T violated its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by selecting an annuity provider they opposed. The retirees presented a “smorgasbord of background information” to argue that the chosen provider was unsafe, but did not substantiate their claims.

Bloomberg Law

Judge rules in Northrop Grumman case

In a recent ruling, the U.S. District Court for the District of Maryland found that Northrop Grumman Systems Corp. acted for legitimate, nondiscriminatory reasons when it declined to promote Otis Robert Harris III, a Black engineer, to a program manager role. The court stated that “undisputed evidence” indicated that the company had valid reasons for selecting a White candidate instead. Harris, who worked for Northrop for over five years, failed to provide evidence that suggested the reasons for the decision were a pretext for racial bias.

Bloomberg Law

TECHNOLOGY

AI reshapes workforce at Salesforce

Artificial intelligence is significantly transforming job roles at Salesforce, as CEO Marc Benioff revealed on “The Logan Bartlett Show.” The company reduced its support staff from 9,000 to 5,000 due to the efficiency of AI agents, which can autonomously handle tasks like customer inquiries and marketing. Benioff stated: “Humans are not going away,” emphasizing a partnership between AI and employees. While AI is expected to replace some entry-level positions, it also creates new opportunities. Despite the potential for job reduction, Salesforce has successfully redeployed hundreds of employees into other areas. Research from McKinsey & Co. indicates that while many companies have adopted generative AI, they report “no material impact on earnings.”

Los Angeles Times

CORPORATE GOVERNANCE

VW labor chief pressures CEO Blume

Volkswagen’s labor leader Daniela Cavallo has called for CEO Oliver Blume to relinquish his dual role as head of both Volkswagen and Porsche AG. In a memo seen by Reuters, Cavallo stated: “The chief executive cannot be a part-time boss in Wolfsburg and spend the rest of his time at Porsche.” The dual leadership has drawn ongoing criticism from shareholders and employees since Porsche's 2022 listing. A source recently revealed that Porsche has initiated the search for Blume’s successor, signaling potential structural change.

Reuters

HEALTH & SAFETY

U.N. employees detained in Yemen

The United Nations reported that at least 19 of its employees were detained by Iranian-backed Houthis during recent raids on U.N. offices in Yemen's capital, Sanaa. U.N. spokesman Stephane Dujarric confirmed that 18 detainees are Yemeni staffers, while one is an international employee, urging for their immediate release. The raids followed the killing of Houthi Prime Minister Ahmed al-Rahawi by Israel, escalating tensions in the region. Dujarric emphasized that these actions jeopardize the U.N.'s ability to provide essential aid to Yemen, the Arab world's poorest country, stating, "The Houthi action seriously endangers the U.N.'s ability to deliver aid." The Houthis have a history of detaining U.N. personnel, with previous incidents involving 23 employees since 2021.

U.S. News

PRODUCTIVITY

AI coaches: The silent disruptors

AI coaches are increasingly integrated into various business functions, providing feedback and guidance. However, their deployment lacks a central strategy, raising concerns about their effectiveness and potential risks. Joseph Freed, Chief Product Officer at Perceptyx, emphasises the need for Learning and Development (L&D) leaders to take ownership of these tools. He states: "Managing AI coaches gives L&D career resiliency in the future of work." Without proper management, these AI systems could lead to inconsistent advice and disengagement among employees. L&D must act swiftly to ensure these tools align with company values and objectives.

Forbes

CYBERSECURITY

Employees embrace AI, companies scramble

Employees are increasingly adopting AI tools independently, creating challenges for companies. According to Microsoft's Work Trend Index, 75% of employees use AI at work, with 80% of users in small and medium-sized firms bringing their own tools. This trend, known as Bring Your Own AI (BYOAI), raises significant risks, including data privacy issues. Nearly 60% of employees reported making mistakes due to AI errors. Allison Spagnolo, chief privacy officer at Guidepost Solution, stated: "When employees use external AI services without the knowledge of their employers... we tend to think about risks like data loss." Companies must adapt by empowering employees with clear guidelines and training.

Fast Company

AI agents revolutionise cybersecurity operations

Perry Carpenter, Chief Human Risk Management Strategist at KnowBe4, discusses the transformative role of AI agents in cybersecurity. These agents function like a virtual security team, monitoring networks and responding to threats with unprecedented speed. However, they raise concerns about autonomy and control. Carpenter emphasises the need for a balance between agent autonomy and human oversight to prevent errors. He states: "If AI systems are developed through the integration of transparency, monitoring and ethical safeguards, they can accelerate innovation." The future of cybersecurity relies on this collaboration between AI and human professionals.

Forbes

INTERNATIONAL

China urges Pakistan to boost security

During a recent meeting, Chinese President Xi Jinping emphasized the need for Pakistan to enhance security for Chinese nationals involved in multi-billion-dollar infrastructure projects. "China supports Pakistan's fight against terrorism and hopes Pakistan will take effective measures to ensure the safety of Chinese personnel," Xi stated. Despite deploying tens of thousands of troops to protect these projects, security threats persist, particularly in Balochistan, where separatist attacks have increased. The ongoing security concerns have led to delays in the $60bn Belt and Road Initiative investments. Abdul Basit from the S. Rajaratnam School of International Studies noted: "I think that's where Xi is emphasizing that, yes, no attack on Chinese lately, but the overall situation is bad and their projects are not going anywhere."

U.S. News

EU's bold plan for skilled migrants

The European Commission is crafting a new visa strategy aimed at attracting top global talent to address EU labor and skills shortages and promote innovation. The plan highlights bureaucratic hurdles in long-stay visa processes, citing their impact on research mobility and skilled migration. The new framework will focus on easing access for researchers, students, start-up founders, and skilled workers, while also streamlining procedures for both long- and short-term visas. The Commission emphasised: “The EU visa policy can support business and tourism travel to the EU more effectively.” Public input is invited until 18 September 2025.

The Local Spain

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