Goldman Sachs accused of culture of bullying that made staff ‘sob through meetings’


Simon Foy
Sat, July 15, 2023 

Significant Event | 4d
Goldman Sachs Is About To Report Its Worst Quarterly Earnings In Years - Semafor

Goldman Sachs

Goldman Sachs’ former recruitment chief has accused it of creating a “culture of bullying” that caused staff to “sob” through meetings and led to him having a mental breakdown.

Ian Dodd, who left the bank in 2021, claimed that Goldman employees frequently “express distress” by crying and that “sobbing through meetings” was common behaviour, according to documents filed in the High Court.

Mr Dodd also alleged that there was a “culture of bullying” at Goldman and that comments such as “take that as your first punch in the face” or references to staff members receiving a “slap” or “punch” were condoned.

Goldman has been accused in the past of having a gruelling workplace culture that demands staff work ultra-long hours.

Mr Dodd, who was global head of recruiting, is suing the Wall Street titan for £1m, alleging that the pressure to work excessive hours caused him to have a mental breakdown.

He alleged that senior managers at the bank ought to have known that he was becoming unwell, that he was at real risk of suffering a breakdown and that this was due to his work.

In its defence Goldman denied all of the allegations. The bank said: “If [Mr Dodd] felt pressure, it was self-generated; it was not imposed on him. If he did work excessive hours, this was not because it was required or expected of him.”

Known for their long hours culture, investment banks have tried to soften their image in recent years in an attempt to retain staff.

In 2021, junior Goldman bankers begged to work just 80 hours a week, after a leaked survey highlighted how “inhumane” expectations were leading to mental health issues among staff.

At the time, bosses at the bank said they would introduce new measures to ease the pressure, including potentially forgoing new business to help balance workloads.

Mr Dodd, who joined Goldman at the end of 2018, also claimed that expressions of “fearfulness” and complaints that staff were struggling to cope and sleep were commonplace at the lender.

In its defence, Goldman argued that Mr Dodd caused or contributed to his breakdown by failing to report to bosses that he was unwell and giving a false account to colleagues concerning his mother’s ill health and death.

It added that Mr Dodd “was not subjected to unreasonable work demands or required to work excessive hours. He was provided with appropriate support [and] had a variety of wellness resources available to him”.


Goldman Sachs declined to comment. Lawyers representing Mr Dodd were contacted for comment.

Ernst & Young scores mega audit deal with UBS bank



Jai Hamid 

- July 16, 2023

Ernst & Young (EY) wins major contract to audit UBS after its acquisition of Credit Suisse.
EY will start auditing the merged UBS-Credit Suisse entity from 2024.
This contract is one of the highest in global banking, EY will use international resources.

In the highly competitive landscape of financial services, professional service titan Ernst & Young (EY) has landed an exceptional contract to audit UBS, the Swiss multinational investment bank and financial services company.

EY is taking over from PricewaterhouseCoopers (PwC), following UBS’s recent acquisition of Credit Suisse.

A change in guard for UBS: From PwC to EY

EY has had a long-standing relationship with UBS, serving as the bank’s external auditor since 1998. As UBS integrates Credit Suisse into its operations—a process that experts predict will span several years—EY will begin auditing the enlarged entity from 2024.

This is one of the world’s most substantial banking audit contracts, so much so that EY is expected to draw upon its international workforce to fulfill the demands of this assignment. Although PwC has been Credit Suisse’s auditor, they will wrap up their involvement by auditing the bank’s 2023 accounts.

In the grand scheme of the world’s financial services, this auditing contract marks an impressive win for EY. The sum that UBS paid to EY for auditing in the previous year amounted to $70 million, while Credit Suisse paid PwC $90 million—a ten percent increase from the prior year.

These hefty payouts reflect the value and prestige of these audit assignments in the European market. However, for the merged UBS-Credit Suisse entity, the audit fee is anticipated to be less than the combined amount paid by the two banks separately.

Nevertheless, it still ranks among the highest audit fees in the global banking arena.

To put these numbers in perspective, HSBC paid PwC $148 million for auditing last year, and Barclays paid KPMG £71 million. The auditing fees of the Wall Street heavyweights—Citigroup, JPMorgan Chase, and Goldman Sachs—ranged between $95 million and $103 million.

EY’s global edge and recent triumphs

The global reach and integration of EY’s financial services audit practice enable the firm to harness resources and specialized skills from across its network. This arrangement is said to be more seamless compared to EY’s competitors, allowing the firm to easily share resources across borders.

This UBS audit contract reaffirms EY’s position as a dominant player in the European market for financial services auditing. Last year, the firm won a share of the €60 million-a-year audit contract of BNP Paribas, France’s largest bank. EY also serves as the auditor for Deutsche Bank, Germany’s most substantial lender.

These recent successes have come despite EY facing reputation damage from its involvement in the Wirecard scandal. However, EY has demonstrated resilience, showcasing its ability to continue winning substantial contracts in the face of adversity.

As EY gears up for this high-stakes audit assignment, it may have to discontinue its consulting services for Credit Suisse, adhering to conflict of interest regulations. The firm was previously hired by Credit Suisse to review anti-money laundering procedures in its Asian wealth business.

The Swiss Federal Audit Oversight Authority, when questioned about EY’s independence as an auditor for the unified UBS-Credit Suisse entity, chose not to comment as the matter is currently “under consideration”.

In a world where credibility and expertise are the cornerstones of success in financial services, EY’s new auditing contract with UBS affirms its position in the big leagues of global auditing.

With this venture, EY not only elevates its standing but also sets the stage for its continued growth in the audit sector of financial services.

AMERIKA

Future retirees plan to work longer, partly due to savings shortfalls

Over half of future retirees plan to continue working amid savings insecurities



Kerry Hannon
·Senior Columnist
Sat, July 15, 2023

Many Americans plan to work longer to cover their retirement savings shortfall. But it may be a pipe dream.

According to a new survey by the nonprofit Transamerica Center for Retirement Studies (TCRS) 55% of workers plan to work after they retire. That includes almost 20% who plan to work full time and more than a third who plan to toil part time. More eye-opening: a staggering 15% of all workers expect their primary source of retirement income to come from working,

TCRS, in collaboration with the Transamerica Institute, polled 5,725 workers over age 18 who worked in a for-profit company employing one or more employees between November 8 and December 13, 2022.

Five years ago, 66% of baby boomer workers, for example, expected to retire after age 65, compared with 71% in late 2022, while 54% planned to work in retirement (compared with 55% in 2022).

Total household retirement savings have increased—from $164,000 five years ago to $289,000 in 2022— but "for many, their savings may be inadequate for a retirement that could last more than 20 years," Catherine Collinson, CEO and president of Transamerica Institute and TCRS, told Yahoo Finance.

The outlook is bleak for a hefty share of workers. Most workers (53%) say they simply don’t have enough income to save for retirement, according to the researchers. Those surveyed expect a range of sources of retirement income, including savings from 401(k) to Social Security. But more than a third—36%—said they’re planning on working to make ends meet.

While working longer is all well and good, these folks may not want to bank on it.

"In theory, envisioning working longer and retiring later sounds like an ideal solution to not having enough retirement savings," Collinson said. "However, it can be very difficult to achieve in practice, especially if you're not taking good care of your health and keeping your job skills up to date."

And, put simply, many workers aren’t doing the work to ensure they can, well, keep working. Fewer than six in 10 workers say they’re staying healthy so they can continue working (58%), and less than half (49%) are keeping their job skills sharp. Even fewer workers are taking classes to learn new skills (24%), and earning a new degree, certification, or professional designation (17%).

What’s spurring the work until you drop thing? The lack of confidence in the retirement system from concerns about how much they have saved to uncertainty about Social Security and Medicare to not understanding where to turn for financial advice.

In fact, retirement confidence in the US has declined by the largest margin since the Great Recession, according to the latest annual survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research. Just 64% of workers are very or somewhat confident they’ll have enough money to live comfortably in retirement, down sharply from 73% in 2022.

That large of a drop in retirement confidence hasn’t happened since 2007 to 2008 and 2008 to 2009 when the economy was in a severe recession, said Craig Copeland, director of Wealth Benefits Research at EBRI, a nonpartisan research institute in Washington, D.C., and chief researcher for the group's 33rd annual Retirement Confidence Survey.

Transamerica Center for Retirement Studies
Workers ‘across generations’ planning to work in retirement

The notion of continuing to earn a paycheck in retirement is not just one embraced by a handful of not ready-to-pack-it-in folks. Workers across generations plan to continue working in retirement, according to the Transamerica survey. More than half of Generation Zers, 56% of millennials, 54% of Gen Xers, and 55% of baby boomers all plan to work in their golden years.

Here’s some data that shows why: Workers planning to work past age 65 and/or in retirement—or are already doing so—cite both healthy-aging (80%) and financial reasons (78%). Other frequently cited considerations are "concerned that Social Security will be less than expected" (33%), "can’t afford to retire" (31%), and "need health benefits" (27%).

Hanging in: About one-quarter of workers surveyed by Transamerica Center for Retirement Studies said their employer offers flexible schedules. And a tiny 21% allow employees to trim work hours and shift from full-time to part-time. (Getty Creative)
'Employers just aren't getting it'

The truth is continuing to earn a paycheck of some sort after stepping away from a primary career is a smart plan even if you have saved enough to cover your living expenses in retirement. It can be a financial safety net and makes it easier to stave off tapping into retirement savings, so the funds can continue to grow. And it can make it easier to delay Social Security benefits. If you choose to wait to tap your benefits until age 70, you earn delayed retirement credits, which come to roughly an 8% per year annual increase in your benefit for each year between your full retirement age until you hit 70 when the credits stop accruing.

There are also psychological and health reasons to take into account, including keeping involved with a social network and feeling relevant.

The problem is that life often comes at you with the unexpected–from health issues to caring for family members like a spouse–that puts the kibosh on it.

Another glaring glitch: A sizable 17% of workers say their employers are not age-friendly, per Transamerica. Only four in ten (41%) said their employer offers retirement transition assistance such as flexible work schedules and arrangements (23%). And a tiny 21% allow employees to trim work hours and shift from full-time to part-time, 18% enable workers to shift to positions that are less stressful or demanding.

Transamerica Center for Retirement Studies

That’s going to be a problem for the more than four in ten of workers who envision transitioning into retirement either by reducing their hours with more time to enjoy life (26%) or working in a different capacity that is either less demanding and/or brings greater personal satisfaction (18%), according to Transamerica.

"It's exciting to see people setting their sights on longer working lives and recognizing the potential for living longer than earlier generations," Collinson said. "But by and large, many employers just aren't getting it yet…many employers’ business practices are still aligned with what is now an outdated mindset that work and retirement are mutually exclusive."

In the end, the worker shortage may provide more job opportunities. "A steep drop in fertility rates has eviscerated working-age populations in leading economies, causing employers to seek out new sources of labor, including older workers," Bradley Schurman, a demographic strategist and the author of The Super Age, told Yahoo Finance. "And that’s pushing some leading employers to devise new retention and recruitment strategies."

Kerry Hannon is a Senior Reporter and Columnist at Yahoo Finance. She is a workplace futurist, a career and retirement strategist and the author of 14 books, including "In Control at 50+: How to Succeed in The New World of Work" and "Never Too Old To Get Rich." Follow her on Twitter @kerryhannon.

THE U$ WORKER IS THE CONSUMER
The US consumer isn't in trouble. Here are 5 stats that show Americans will be fine even amid dwindling savings and student loan payments.

Consumers are "rebalancing" spending priorities in response to inflation, says Mastercard's head of marketing and communications


Matthew Fox
Sat, July 15, 2023

A resilient consumer has helped stave off a recession so far.

The US consumer is doing just fine, and their resilient spending habits should help stave off a recession.

That's true even amid concerns of dwindling excess savings and the imminent resumption of student loan payments.

These five charts help show just how resilient the US consumer is despite fears of a recession.

The US consumer is doing just fine as they continue to spend money despite elevated inflation and ongoing fears that a recession will soon hit the economy.

Despite some commentators sounding the alarm, the US consumer isn't in imminent financial trouble because of dwindling excess savings from the COVID-19 pandemic on top of student loan payments set to kick in again later this year.

That's the big takeaway from Carson Group's chief market strategist Ryan Detrick, who highlighted just how strong the consumer really is based on various economic datasets in the firm's 2023 mid-year outlook report.

The consumer is important to track for because about 70% of the US economy is driven by consumer spending, which relies heavily on the daily spending habits of more than 300 million Americans.

And current data is pointing to stronger trends today than pre-pandemic.

These are the five key charts that show just how strong the consumer is, and why that strength should continue to shield the US economy from an imminent recession.
1. Monthly debt payments are manageable.

Carson Group

"When thinking about debt, the key question is whether households are able to service that debt," Detrick.

Enter the household debt service ratio, which measures the percentage of consumers' income that is being used to pay off all types of debts, from mortgages to credit card bills to student loans.

Based on estimates from JPMorgan, the household debt service ratio at the end of the second quarter was 9.7%. That figure is well below the 13.2% reading seen in the fourth-quarter of 2007, and it's also below the pre-pandemic average of 11.2%. That gives the consumer plenty of wiggle room to take on more debt if they need to, which would lead to more spending and help lift the economy.
2. Real income growth.

Carson Group

For much of the past two years, wage gains have failed to keep pace with quickly rising inflation. But with inflation finally falling, and wage gains holding steady, that's changed. It means consumers ultimately have more money in their pocket, another good sign that should support the economy going forward.

"Disposable income has grown at an annualized pace of 10% over the first five months of this year. Meanwhile, inflation is running just about 4%, meaning households are seeing real income gains," Detrick said.
3. A healthy balance sheet.

JPMorgan

Consumers have $168.5 trillion in total assets compared to just $19.6 trillion in debt. That's a healthy balance sheet and doesn't suggest a period of weakness ahead.
4. A strong jobs market.

Carson Group

At the end of the day, all that matters is that consumers have jobs, as that's what fuels the bulk of their spending habits. If they have a paycheck, they're spending money. So it's no surprise just how important the strength of the job market is for the consumer, and right now the job market is looking great, with plenty of open positions for those that are looking around.

"The employment-population ratio for prime-age workers (25-54 years), which accounts for labor force participation issues and an aging population, is now at 80.7%. That is higher than at any point between 2002 and 2022. This is truly remarkable, and points to a labor market that is the strongest we've seen since the late 1990s," Detrick said.
5. Strong spending trends.

Carson Group

"Consumption continues to run along the pre-pandemic trend, even after adjusting for inflation... Spending driven by rising real incomes means consumers don't feel the need to borrow to the extent they did before the pandemic," Detrick said.

 Business Insider

Americans are feeling better about the economy. But economists say not so fast

Josh Schafer
·Reporter
Sun, July 16, 2023 

American consumers haven't felt this good about the economy since September 2021.

Stocks are higher, with some strategists even suggesting a record-setting year for the S&P 500. Inflation has fallen from north of 9% to 3%, according to one metric. And all of this, while the US labor market remains tight with a historically low unemployment rate.

Friday's preliminary July reading of the University of Michigan's Consumer Sentiment Index reflected the recent positive signs, with the index's 13% jump from June marking the largest monthly increase since 2005.

But the positive vibes aren't in line with what economists believe recent data is telling us about the US economic outlook moving forward.

"It is important to avoid reading too deeply into the details of a single month's report," warned Jefferies US economist Thomas Simons on Friday.

He continued: "We remain steadfast in the view that the economy is going to take a turn for the worse within the coming months, but it seems that consumers are becoming more sanguine and buying into the soft-landing or 'no-landing' narratives, at least for now."

The narrative of a soft landing Simons references has become more prevalent as economic data has largely surprised economists to the upside recently and stocks have rallied to begin second-quarter earnings season. Last week, consumer prices increased at their slowest pace since March 2021 while producer prices showed similar signs of cooling inflation.

In the labor market, weekly jobless claims of 237,000 came in lower than expectations for 250,000 claims. Meanwhile, the recent June Jobs report showed some slowing from previous months but still revealed 209,000 jobs, the unemployment ticked lower to 3.6%, and average hourly earnings grew 4.4% from the year prior.

In reaction to the compilation of data, Wells Fargo's economics team wrote "better than expected doesn't mean all is well." The economics group at Bank of America's Global Research said it's "encouraged but not carried away."

An American flag balloon in the Fourth of July parade in downtown Washington D.C., July 4,2023. (Photo by Robb Hill for The Washington Post via Getty Images)

"Since our prior outlook in June, our expectations for the U.S. economy have not materially changed," Wells Fargo's team led by Chief economist Jay Bryson wrote in a monthly update on Thursday. "We continue to believe that the Federal Reserve's efforts to restore inflation back to 2% will slowly squeeze household and business spending, generating a mild downturn early next year."

The case that a recession still looms is based on slowing consumer spending, the lagging impacts of monetary policy and a belief that, while inflation is cooling, the path for the final one-percentage-point decline in headline inflation to meet the Fed's 2% goal will be much longer than the past year's precipitous fall.

"We think it is too early for the Fed to declare victory on inflation," BofA US economist Michael Gapen wrote. "Despite the significant softening in the CPI and PPI, our core PCE inflation forecast for June still annualizes to 2.4%, or 40bp above the Fed’s target."


Wells Fargo notes that slowing disinflation combined with the softening jobs market, will weaken disposable income in the coming months. Eventually, that will lead to slowing growth and a "mild recession" in early 2024.

"Consumers are running out of steam," the team wrote.

Josh Schafer is a reporter for Yahoo Finance.

Canada wildfires: Second firefighter dies amid record blazes

Christy Cooney - BBC News
Sun, July 16, 2023 

A wildfire raging earlier this month in British Colombia - where another firefighter lost her life in recent days

A second firefighter has been killed in Canada as the country battles its worst season of wildfires on record.

The person, who has not yet been named, died from injuries sustained while fighting a fire near Fort Liard in the Northwest Territories on Saturday.

It comes just days after 19-year-old Devyn Gale was killed while working in neighbouring British Columbia.

Nearly 900 wildfires are currently burning across Canada, about 580 of which remain out of control.

So far this season, the fires have burned more than 10m hectares (24.7m acres) of land, according to the Canadian Interagency Forest Fire Centre.

The figure is higher than for any previous year on record and more than three times the average for the previous ten years.

On Sunday, Prime Minister Justin Trudeau said he was "incredibly saddened" by the news that a second firefighter had lost their life, and sent his condolences to their family.

Caroline Cochrane, premier of the Northwest Territories, said the death was a "tragic loss for the entire territory".

"I extend my heartfelt condolences to their family, friends and colleagues," she said.

"The bravery and selflessness of our firefighters is an incredible gift to us all. Thank you for your service to our territory and to our country."

Ms Gale's death was the first death on the ground since the start of Canada's wildfire season - and reportedly the first in British Columbia since 2015.

Afterwards, Mr Trudeau said Canadians "must never forget the risks these heroes take every time they run toward the danger".

"To firefighters... across the country who are doing just that to keep us safe: Thank you. We are inspired by your courage, and grateful for your service," he said.

Climate change increases the risk of the hot, dry weather that is likely to fuel wildfires. The world has already warmed by about 1.1C since the industrial era began and temperatures will keep rising unless governments around the world make steep cuts to emissions.

Canada is estimated to be warming twice as fast as the rest of the world and in recent years has seen extreme weather events of increasing frequency and intensity.

The wildfires have also sparked pollution alerts across North America as smoke is blown south along the continent's eastern coast.

Trudeau pays tribute to brave 19-year-old killed fighting wildfires

Susie Coen
Sat, July 15, 2023 

Devyn Gale was described by her brother as 'careful, considerate, hardworking'

Justin Trudeau, the Canadian prime minister, has paid tribute to a brave 19-year-old firefighter who was killed while helping to tackle the country’s worst wildfire season on record.

Devyn Gale, who was also a competitive gymnast, was hit by a falling tree while working in a remote area near the town of Revelstoke, British Columbia.

She is the first firefighter to die in Canada this year and the first in British Columbia since 2015.

Mr Trudeau described the news as heartbreaking and sent his “deepest condolences to her family, her friends, and her fellow firefighters”.

The prime minister wrote on Twitter:



Officials said a female firefighter was found caught under a tree after becoming separated from the rest of her team while clearing an area of brush.

She was airlifted to hospital but died on Thursday.

Images of the young firefighter were shared on social media

In a moving tribute identifying the victim, Nolan Gale described his sister as “careful, considerate, hardworking”.

Writing on Instagram, he said she was an “amazing sister” and thanked her “for everything she’s done for me and others, completely out of kindness with no expectation for reciprocation”.

Fuelled by drought and hot conditions, Canada is having its worst wildfire season in recorded history, having witnessed more than 10 million hectares (24.7 million acres) burn so far this year.

The prior all-time high occurred in 1989, when 7.3 million hectares of land were burned, according to national figures from the Canadian Interagency Forest Fire Centre.

With 365 active fires currently burning, British Columbia has been one of the worst-affected areas. Earlier this week, it put out a call for help from an additional 1,000 international firefighters.

The United States, Australia, Spain and France are among the 11 countries to have helped send a record 3,200 firefighters to battle the fires.

Last month, smoke from the Canadian wildfires blanketed states on the east coast. New York sporting events were cancelled and residents advised to stay at home due to poor air quality.

UK formally signs up to trans-Pacific trading bloc

UK IS AN ISLAND SO ARE THE PACIFIC NATIONS

Phil HAZLEWOOD
Sun, July 16, 2023 

UK Business and Trade Secretary Kemi Badenoch said the CTPP deal was a great opportunity

The UK government on Sunday hailed what it said was its biggest trade deal since Brexit, as it formally signed a treaty to join a major Indo-Pacific bloc.

Business and Trade Secretary Kemi Badenoch signed the accession protocol for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in New Zealand.

It makes the United Kingdom the first new member and first European nation to join the bloc since it was created in 2018.

The CPTPP comprises the UK's fellow G7 members Canada and Japan, plus long-standing allies Australia and New Zealand, alongside Brunei, Chile, Malaysia, Mexico, Peru, Singapore and Vietnam.

It has been seen as a bulwark against Chinese dominance in the region, although Beijing has applied to join.

Badenoch said in an interview with Sky News that the deal showed the UK "looking outwards towards the world".

"We have a seat at the table in the fastest-growing region, countries are queuing up (to join)," she added.

"I'm really excited that we've brought home the biggest trade deal since we left the European Union."

London has been pushing a "Global Britain" strategy since formally severing nearly 50 years of ties with its nearest neighbours in the European Union three years ago.

Sunday's signing at a CPTPP meeting in Auckland was the formal confirmation of the agreement for UK membership after nearly two years of talks.

The government said it will cut tariffs for UK exports to CPTPP countries, which with UK membership will have a combined GDP of £12 trillion ($15.7 trillion), and account for 15 percent of global GDP.

It will give British businesses trade access to a market of more than 500 million people and access to the wider region, it added.

The agreement is expected to come into force in the second half of next year, after parliamentary scrutiny and legislation.

- Mixed reception -

UK accession to the CPTPP -- the successor to a previous trans-Pacific trade pact that the United States withdrew from in 2017 under president Donald Trump -- has, however, been met with a mixed reception.

For Brexit supporters, it has been seen as a chance for the UK to join other trading blocs with faster-growing economies than those closer to home -- and boost the country's international geopolitical and economic clout.

But critics say it will struggle to compensate for the economic damage sustained by leaving the 27-member EU -- the world's largest trading bloc and collective economy.

The UK already has trade deals with 10 of the 11 other CPTPP members, and analysts estimate the eventual economic boost to the country is £1.8 billion ($2.2 billion) -- a 0.08 percent annual GDP increase.

The government's spending watchdog, the Office for Budget Responsibility, in April forecast that London's Brexit deal with Brussels will reduce long-term productivity by 4.0 percent compared to when the UK was a member.

A key UK government pledge to sign a prized free-trade deal with the United States remains elusive, and Badenoch assessed the chances of securing one currently were "very low".

"It all depends on the administration... Lots of countries have been looking to have a free trade agreement with the US, including us, but for now, they've said that's not something that they want to do," she added.

In the absence of a deal, the UK has signed trade agreements with US states North Carolina, South Carolina and Indiana.

It is also seeking closer trading partnerships with US powerhouses California and Texas, and is in discussions with Utah and Oklahoma.

LA REVUE GAUCHE - Left Comment: Search results for CPTPP 

UK

London Workers More Gloomy About Prospects of Finding a New Job




Jill Namatsi and Jack Ryan
Sat, July 15, 2023 

(Bloomberg) -- London workers are more uneasy about finding a new job than in any other region of England, according to a poll that indicates gloom about the outlook for the economy.

About 38% of people in London said they were “not confident” about their ability to find another job in three months if they lost the one they had, according to a survey by Deltapoll commissioned by Bloomberg. That was 11 points higher than those in the rest of South, 6 points above the Midlands and 5 points higher than those in the North. Only people in Scotland were more pessimistic.

It’s an indication that London, which has driven UK economic prosperity for decades, has lost momentum after the soaring cost of living and the trend toward working remotely left less of a need for people to commute into city centers.

It also may indicate growing concerns about the jobs market after the national unemployment rate rose unexpectedly to 4%. London and the West Midlands have the highest levels of joblessness in England, according to official data published this week.

London’s relative gloom may reflect the difference between living in the city and working there, Tony Wilson, director of the Institute for Employment Studies. Compared to people living elsewhere, Londoners are more likely to be unemployed and less likely to be in work.

“Lots of people who work in higher paid jobs in London commute from the wider South East and will probably feel that they’d have a decent chance of finding another job if their current one ended,” Wilson said.

“Londoners work in those jobs too, but they also work in the visitor economy, hospitality and retail, which are all pretty exposed if there’s a wider slowdown,” he said. “They may feel like they would struggle to find other jobs in those industries if they lost their current job.”

While London still is generating jobs, remote working and a shift toward moving jobs to cheaper nations outside the UK may have left workers with a sharper sense of competition, according to Dan Harris, director of the recruitment company Robert Walters.

“In the tech space, there has been off-shoring to Poland, both for the cost savings and because of the talent that is available there,” he said, adding that banks that traditionally focused in London are building a hub in Manchester. “In the current financial climate, those cost savings are going to look attractive to businesses.”

Overall, 48% of workers in the UK said they were confident about finding jobs under similar circumstances, compared with 32% who were not.

About 53% of men were confident about their prospects, 10 points higher than the reading for women. People aged 18-34 were the most confident, while people aged 35-54 were the least confident.

Deltapoll interviewed 1,617 British adults online from July 7-10. The data was weighted to be representative of the adult British population. The margin of error for the whole survey was plus or minus 2.4%, though in London, where the sample size was smaller, it was 7.4%.

Firefighters are leaving the U.S. Forest Service for better pay and benefits



Alicia Victoria Lozano
Updated Sun, July 16, 2023

LOS ANGELES — Thousands of federal wildland firefighters could walk off the job if Congress fails to pass a permanent pay increase, officials and advocates warned amid an already scorching summer that could lead to an explosion of wildfires later in the year.

From 30% to 50% of the roughly 11,000 firefighters who combat wildfires across millions of acres of land managed by the U.S. Forest Service could resign in coming seasons without a longterm solution to persistently low wages and poor benefits, according to the National Federation of Federal Employees.

“This is an absolute crisis,” said Max Alonzo, an organizer with the federation. “The majority of people I know already have their applications out for other jobs and they’re just waiting.”

The situation has grown so dire that the San Bernardino National Forest in Southern California saw 42 resignations in 48 hours in May, officials said.

Many of those firefighters left for the California Department of Forestry and Fire Protection, or Cal Fire, which is viewed as a prime gig thanks to its generous salaries, robust benefits and manageable work schedule that was recently negotiated down to a 66-hour work week from 72 hours.

“Soon there won’t be anybody left,” said Steve Gutierrez, a former hotshot who recently left the Forest Service after 15 years to advocate on behalf of firefighters through the federation. “We train them and Cal Fire takes them.”

Aaron Foye, who resigned from the San Bernardino National Forest last September for a job as an engineer with Cal Fire, estimated staff shortages were so high when he left that only one out of four fire engine crews was staffed seven days a week.

“I felt like I was being selfish working at the Forest Service because I wasn’t really providing enough for my family,” Foye said. “All of our best talent with the Forest Service has bled out in the last two years."

Lawmakers have introduced bills this year in the House and the Senate that would codify an existing pay increase under President Joe's Biden's infrastructure bill, which temporarily bumped salaries for wildland firefighters by up to $20,000.

Without a permanent fix, that increase is set to expire at the end of September and roll back salaries for thousands of federal firefighters.

“We absolutely need Congress to take action and put in place a permanent pay fix,” said Forest Service Deputy Chief Jaelith Hall-Rivera. “If we’re not able to do that and we’re not able to give them that certainty going into the future, they are going to need to look elsewhere for a position that does provide that certainty.”

Earlier this week, a bipartisan group of six senators introduced the Wildland Firefighter Paycheck Protection Act, which would keep the current pay raise and help to ensure the federal government can recruit and retain a sufficient firefighting workforce for years to come.

In May, a bipartisan bill was reintroduced in the House that would similarly increase pay and address firefighters' mental and physical health, housing, retirement and tuition assistance benefits. It was referred to the forestry subcommittee in June.

Federal wildland firefighters have long warned that without a permanent pay raise, their ranks would dwindle even as wildfires continue to increase in both intensity and frequency across the country and beyond.

The expertise of federal firefighters is unrivaled when compared with the experience of those who work for municipal and state agencies, which might not include hiking through rugged and dangerous terrain or dropping from helicopters into the middle of a forest. Federal firefighters are also able to traverse state and international borders, including joining Canadian forces this year to battle historic blazes north of the United States.

Still, the Forest Service has struggled in recent years to fill vacancies amid rising inflation and severe drought, officials said. In 2021, during one of the most destructive fire seasons in history, the agency also faced shrinking water, food and communications supplies in addition to low staffing levels.

This year, the Forest Service has 11,150 wildland firefighters onboard nationwide, or 99% of its goal of 11,300, the agency said.

For many men and women on the front lines of fighting fires, the high cost of living means more stress for them and their families, and they begin looking for some relief.

At Cal Fire, the state added 37 fire crews to its staff in 2022 after adding 16 in 2021. An additional $671.4 million in the 2022-2023 fiscal year will pay for 1,265 new positions and expand fire crews, air attack operations and additional staff relief, according to Gov. Gavin Newsom's office.

A recent report by Grassroots Wildland Firefighters, an advocacy organization, found that federal firefighters were paid on average 32.51% below their state counterparts. In California, the disparity is just above 56%.

"I wish I had done it sooner," Foye said of joining Cal Fire. "Best decision I ever made."

Still, when asked if he would return to the federal agency should conditions improve, he said: “I would return in a heartbeat.”

As federal firefighters wait for Congress to act, their families say they are held hostage to the whims of lawmakers.

Janelle Valentine feels nothing but admiration and pride for her husband, who is a federal firefighter in the Gila National Forest.

She gave up her own career in early childhood education to move from Arizona to New Mexico when her husband was placed there, and now lives an hour away from the nearest grocery store while her husband spends nearly half the year fighting fires.

She said the sacrifice was worth it because they are both passionate about the Forest Service's mission, but she wonders how much longer they can hold on.

"We’ve been hanging on by the skin of our teeth and wanting it to work out, but we can’t afford it at this point," she said.

Valentine said they were forced to buy a trailer home for her husband to live in while on assignment because the government housing that was offered was dilapidated and moldy. They are barely able to cover the trailer's cost and their mortgage while Valentine works on earning a master's degree in social work.

"It’s such a low cost of living here, and we’re still drowning," she said. "At what point do you just jump ship with something you love?"

This article was originally published on NBCNews.com

U$A
Chemical giant 3M agrees to pay $12.5 billion after allegedly letting toxic ‘forever chemicals’ seep into our drinking water



Sara Klimek
Fri, July 14, 2023 

3M, a conglomerate allegedly responsible for releasing harmful chemicals into drinking water, recently agreed to a settlement of at least $10.3 billion and up to $12.5 billion paid over 13 years. The funds would be appropriated for testing water for per- and polyfluoroalkyl substances (PFAS) and abating the chemicals in affected water.

“This settlement with 3M is a significant step forward in what has been many years of work to make sure that those responsible for the contamination of our nation’s drinking water supply with PFAS ‘forever chemicals’ pay for the damage — not the victims of the contamination,” Rob Bilott, a member of the plaintiff’s court-appointed advisory council, said.

Despite the payout, some folks are concerned that the settlement money will not cover the injuries and damages perpetuated by 3M.

“The agreement does not resolve hundreds of cases that seek compensation for personal injuries and property damage,” University of Richmond law professor Carl Tobias commented.

PFAS are a class of chemicals deemed “forever chemicals” because they do not easily break down in the environment. Because the chemicals hold up well to oil, water, and heat, they have been used to manufacture consumer items like raincoats and non-stick cookware.

Scientific research has revealed that the impacts of PFAS on the human body are troubling and include kidney disease, decreased fertility, and congenital disabilities.

The cases against 3M allege that the company knew that the two classes of PFAS — PFOA and PFOS — threatened human and environmental health, yet chose to manufacture them, reports The New Lede.

A statement from 3M chairman and CEO Mike Roman claimed that the company has invested in “state-of-the-art water filtration technology” in its chemical manufacturing process in the past few years and plans to cease all PFAS manufacturing by 2025.

The settlement is a victory in the fight against companies like 3M and may suggest a turning point for other corporate cases.

“This settlement will go a long way toward cleaning up drinking water for millions of Americans, but the costs to our health and our environment are likely far larger,” Emily Scarr, director of the Maryland Public Interest Research Group (PIRG), said, per Environment America. “We need to keep holding polluting industries accountable so taxpayers don’t have to foot the bill.”

THE BEST LAID PLANS...

Costly Deep Tunnel flooding project can’t handle Chicago area’s severe storms fueled by climate change






Costly Deep Tunnel flooding project can’t handle Chicago area’s severe storms fueled by climate change
E. Jason Wambsgans/Chicago Tribune/TNS

Michael Hawthorne, Adriana Pérez, Chicago Tribune
Sun, July 16, 2023 

Hours before heavy rains swamped Chicago and Cook County suburbs on July 2, the region’s $3.8 billion flood-control project appeared ready as can be to bottle up storm runoff.

The Deep Tunnel’s massive sewers, capable of holding 2.3 billion gallons, were almost empty, according to Metropolitan Water Reclamation District records.

At the end of tunnels hundreds of feet below the Chicago River, Des Plaines River and North Shore Channel, the McCook Reservoir — more than 20 times larger than Soldier Field — was just 17% full of raw sewage and runoff being stored until it could be safely treated.

But the first sign of trouble came before 8:30 a.m., when runoff mixed with human and industrial waste began pouring into the Des Plaines from an overflow pipe at 40th Street in southwest suburban Lyons, district records show.

Two hours later, the same thing happened at a pump station in north suburban Wilmette and another, much larger facility off Lawrence Avenue in Chicago, where fetid gunk flowed into the North Branch of the Chicago River for nearly a day. Waste and runoff would end up pouring out of 19 other overflow pipes across the county, from Evanston to Westchester, many for hours at a time.

“When you have a slow-moving storm that’s dumping a large amount of rainfall, it doesn’t take much to cause problems,” said Zachary Yack, a National Weather Service meteorologist who noted that up to 8 inches of rain fell in the western suburbs during the day. “That’s a lot of water to contend with in a very short period of time.”

Sewage overflows are an indicator that basements are flooding, effectively turning scores of homes into mini stormwater reservoirs.

By 2:27 p.m., local sewers and the Deep Tunnel were so saturated that district officials turned to their outlets of last resort. First they opened a sluice gate separating the North Shore Channel from Lake Michigan in Wilmette, and then they opened locks near Navy Pier, relieving pressure on the system by allowing more than 1.1 billion gallons of murky, bacteria-laden waste to flow into the region’s chief source of drinking water.

Suburban leaders fielding complaints about standing water and basement backups attempted to pin the blame on district officials for not opening the gate and locks earlier. Several reminded their constituents that the Deep Tunnel, one of the nation’s most expensive public works projects, was designed to prevent flooding and reduce the amount of stomach-churning sewage and runoff gushing into basements and local waterways.

“They’ve been talking about the Deep Tunnel, and that it’s not ready. And that even when it is completed, it still won’t be enough,” said Shapearl Wells, who watched water in her west suburban Cicero basement reach waist high within an hour. “It is still not going to be sufficient to prevent this type of catastrophic disaster in the future — even if they finished it all today.”

When construction of the Deep Tunnel began in 1975, leaders of what then was called the Metropolitan Sanitary District vowed their subterranean labyrinth of tunnels alone would keep pollution out of the Chicago River, and in particular, Lake Michigan.

Our changing climate is scrambling weather patterns, though. Recent storms suggest rain can now fall so quickly that stormwater tunnels can’t move runoff to the reservoir fast enough to prevent sewage overflows and basement backups in the 252 square miles of Chicago and County served by the main part of the system.

“Mother Nature continues to be in the driver’s seat and the main issue is the rain: too much, too intense and too frequent,” said Marcelo Garcia, a University of Illinois hydrological engineer who studies the Deep Tunnel.

Scientists are finding the world is warmer than it has been in thousands of years. All of that hot air sucks moisture out of plants and soil, fueling droughts and wildfires. More moisture in the atmosphere also increases the amount of rain (or snow) that can fall during a particular storm.

“Essentially we find that every storm is now being affected by climate change,” said Don Wuebbles, an emeritus professor of atmospheric sciences at the University of Illinois who was a science adviser to former President Barack Obama.

In 2010, Wuebbles and other scientists hired by former Mayor Richard M. Daley concluded that rains of more than 2.5 inches a day, the amount that can trigger sewage dumping into Lake Michigan, were expected to increase by 50% by 2039. By the end of the century, the number of big storms could jump by a whopping 160%.

Several monsoon-like storms in recent years highlight how challenging it is to manage stormwater in Chicago and the Cook County suburbs. Since 2008, district records show, nearly 40 billion gallons of runoff and waste have been released into the lake — three times more than during the previous two decades.

Officials at the Water Reclamation District, a taxpayer-financed agency that operates separately from City Hall and Cook County government, declined to speak with the Chicago Tribune about how the Deep Tunnel performed during the most recent storms.

They’ve previously said the region’s flooding would be far worse without the project, technically known as the Tunnel and Reservoir Plan or TARP.

“TARP continues to operate as designed,” the district said Thursday in a statement noting the system was holding more than 8 billion gallons that otherwise would be in basements, waterways and Lake Michigan. By then sewage and runoff was spilling out of only one spot: a pump station off Racine Avenue in McKinley Park that handles waste and runoff from a wide swath of Chicago’s South and West sides.

In another statement, district officials said it would have been too dangerous to open the Wilmette sluice gate and Navy Pier locks any earlier on July 2. They waited until the North Shore Channel and Chicago River were higher than the lake, the statement explained, because otherwise a torrent of lake water would have overwhelmed the system.

Under a legal settlement with environmental groups, the district is obligated to expand the McCook Reservoir. A neighboring hard-rock quarry will be added to the existing retention basin by 2029, increasing storage to 10 billion gallons, up from 3.5 billion gallons today.

Just before noon on July 2 there still was room to spare in the reservoir, according to a screenshot the Tribune took from the district’s livestream. At the same time, Chicago’s 311 system had already logged hundreds of calls reporting basement backups and the district’s own records show sewage and runoff had been pouring into local waterways for hours.

Kathryn Taylor was getting ready to meet her sister visiting from New York when she noticed a puddle in her North Lawndale basement apartment, where she lives with her two sons, 32 and 20, her daughter, 24, and her daughter’s 3-year-old.

She decided she could mop up the water later. But soon after she left one of Taylor’s sons called to tell her the miasma was 3 feet high and rising.

Taylor returned to find food from the refrigerator floating in sewer water. Furniture, beds and clothes were irreparably damaged. Since the water receded the family has been constantly bleaching and washing their walls and floors.

“I basically lost everything,” said Taylor, the family’s sole provider. “It’s just exhausting.”

Flood losses in the city and suburbs cost taxpayers $1.8 billion in subsidized grants, loans and insurance payments between 2004 and 2014, according to a 2019 report from the National Academy of Sciences. Only hurricane-ravaged areas of coastal Louisiana, New York and Texas received more federal flood aid during the decade.

Scientists who study flooding say the costs likely were significantly higher.

Computer models developed by the city can track down to the block level which neighborhoods are most at risk. Like so many other societal ills, the consequences hit the poorest Chicagoans the hardest. After a major storm in 2013, city officials determined the damages were concentrated in low- and middle-income census tracts on the West and South sides, similar to where many 311 calls originated after the more recent storms.

The region’s struggle with chronic flooding begins with its location. Chicago and many of its suburbs were built on swamps, and storm runoff has become more difficult to manage as the region has been paved over.

To make matters worse, sewers in Chicago and older suburbs were designed to handle runoff as well as waste from homes and factories. The combined sewers are quickly overwhelmed when rainfall exceeds two-thirds of an inch, according to modeling by the Chicago Department of Water Management.

To supplement the Deep Tunnel, the Water Reclamation District has partnered with several flood-prone suburbs to build smaller retention basins, including some on land where frequently soaked property owners have sold their homes to make room for storm deluges.

Environmental groups have been calling for more “green infrastructure” solutions for years, including during the 1970s when district officials struggled to persuade Congress to bankroll a massive public works project.

Other cities, including Milwaukee and Philadelphia, are moving away from big construction projects and embracing smaller, neighborhood-scale improvements such as installing permeable pavement in parking lanes, creating rain gardens around gutters to slow runoff and disconnecting household downspouts from sewers.

Some of those smaller measures are underway in the Chicago area, just not at the pace necessary to reduce flooding.

“The devastation around the neighborhood — it was just unbelievable,” said Wells, the Cicero resident who on July 2 lost furniture, appliances and, most painfully, basketball trophies and other belongings of her son, Courtney Copeland, who was shot and killed in 2016 while on his way to visit a friend on the Northwest Side of Chicago.

“People were actually on boats. Elderly people,” Wells said about the recent storm. “Until we have investment in (green) infrastructure, this is going to continue to happen and we’re going to continue to get flooded out.”

mhawthorne@chicagotribune.com

adperez@chicagotribune.com