Saturday, November 4, 2023

How China’s delivery drivers quietly fight to improve their lot | The economy is growing at its fastest rate in 3 years and it may be because bosses are treating employees better. Just look at Starbucks gaining $10 billion in one day | 5 Things High-Performing Teams Do Differently | Bayer hit with $332 million judgement in trial of man who blames his cancer on decades using Monsanto's Roundup weedkiller

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How China's delivery drivers quietly fight to improve their lot - The Economist   

China’s food-delivery drivers have a lot to complain about. Many work long days, earning as little as 5 yuan ($0.68) per delivery. Heavy rain and heatwaves do not stop them—in fact, demand is highest during such weather. Delivery apps promise fast turnarounds, so drivers, most of whom work for contractors, are sometimes fined for arriving late (not to mention scolded by customers). The only way to keep up, they say, is by running red lights and speeding. Accidents are common.

Drivers and couriers have pressed for improvements, holding around 400 protests in the past five years, says China Labour Bulletin, an NGO in Hong Kong. Perceived troublemakers can face consequences, such as being cut out of deliveries. Nevertheless, a new study suggests that labour activism among drivers may actually be more widespread than previously thought. Some are using quieter tactics to get their way.

The research was carried out by Bo Zhao of Fudan University in Shanghai and Siqi Luo of Sun Yat-sen University in Guangzhou. One of the authors spent 18 months working as a delivery driver in southern China. During this time they witnessed five small-scale strikes, none of which was known to the public. Rather than taking to the streets, upset drivers simply logged out of the app that assigns deliveries during a period when demand was high, such as at lunchtime. That was enough to cause delays to snowball, forcing the company to reject orders.

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The economy is growing at its fastest rate in 3 years and it may be because bosses are treating employees better. Just look at Starbucks gaining $10 billion in one day - Fortune   

Coffee juggernaut Starbucks outperformed earnings expectations last quarter, sending the stock shooting up 12% since Thursday when it reported results for fiscal 2023. That was good for a single-day jump of about $10 billion in Starbucks’ market cap on Thursday. Executives attributed much of the coffee chain’s success this quarter to a new plan to improve working conditions in stores meant to help employees do their jobs better. Starbucks improved pay and scheduling headaches for in-store employees, replaced old equipment, and lowered turnover, all part of an effort to “reinvigorate the partner culture at Starbucks,” CEO Laxman Narasimhan told investors on an earnings call. Given the results Starbucks posted it appears to be working, and could be emblematic of a trend across the economy.

Starbucks saw strong results across the board in terms of revenue, same store sales, transactions, and check size, which it attributed in part to its ability to be more productive. It’s a trend that’s been prevalent across the economy in the third quarter as productivity rose alongside worker pay. As the Axios Markets newsletter pointed out, economists have been surprised after years and years of stagnating productivity, including two straight quarters of decline in 2022, but Starbucks’ blowout quarter is an early sign that this won’t be business as usual. 

When reached for comment Starbucks directed Fortune to a copy of its earnings release and call transcript. 

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