UAW workers pump the breaks
UAW workers pump the breaks: The United Automobile Workers union has gone on strike at General Motors, causing nearly 50,000 employees to protest the terms of its agreement with the company, according to the New York Times. The regional leaders, stationed in Detroit, authorized the strike after its bargaining agreement expired on Saturday. The walkout is the first since 2007. G.M. said it offered to make more than $7 billion in new investments in plants across the US, adding more than 5,000 new jobs and increasing pay and benefits for employees. But union representatives were having none of it.
“Today, we stand strong and say with one voice, we are standing up for our members and for
the fundamental rights of working-class people in this nation” said Terry Dittes, a union vice president.
The start of financial planning: While financial planning seems like one of those very necessary professions that would (and should) have been around for ages, it’s still relatively new to the broader financial industry. Investment News looks at the 50th anniversary of the profession, full of history, successes, failures, legal battles and colorful characters.
An education in municipal bonds: Public schools and municipalities will often hire Wall Street pros to sell their municipal bonds when they’re in need of cash for projects like infrastructure upgrades, building extensions and classroom repairs. However, traders will often “flip” these bonds, turning a profit to then be bought back and re-sold, signaling the bonds were initially underpriced, reports the Wall Street Journal. Districts and municipalities wind up paying more interest over the life of the bond than if they’d been priced closer to what investors actually paid, putting more money back in traders’ pockets and ultimately costing taxpayers more.
California reshapes the gig economy: California has passed a landmark bill, AB5, that will now require employers like Lyft and Uber to classify independent contractors as employees. The bill will require firms to pay for things like medical benefits, unemployment insurance and paid sick days, according to The Economist. New York could be next. Governor Andrew Cuomo said the bill got his “competitive juices flowing” the day before the bill passed.
Long-term mortgages create massive debt: For those who can’t stand to rent anymore and desperate to buy a home, a long-term mortgage has some appeal. Thirty-five-year payment terms mean smaller monthly mortgage payments but it also means much larger interest accrual. The Telegraph looks at the effects of these investments and how they can be avoided.