Connect with us

Business News

Amidst layoffs, Pepsi throws literally everyone else under the bus #SodaTax

(BUSINESS NEWS) Philadelphia based soda manufacturer lays of mass amounts of people and then let everyone know its not their fault.

Published

on

pepsi

Soda tax is back in the spotlight

Philadelphia: the hometown of the Fresh Prince of Bel-Aire, the city of brotherly love, and it’s where your soda is taxed more than a beer. The sugary drink tax (also known as the soda tax), which was enacted in January, is in the spotlight once again as Pepsi announces 80-100 layoffs in its Philadelphia based distribution plants.

bar
Pepsi Co spokesman Deva DeCecco wasn’t shy about putting the blame on the new tax.

“Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions, including frontline and supervisory roles,” DeCecco said.

We warned you

The shade thrown at the soda tax is no surprise.

A coalition composed of store owners, beverage companies and labor unions previously warned the city of potential job loss due to the tax.

Danny Grace, Secretary Treasurer of Teamsters local 830 sent a letter to city officials soon after the tax passed. “This unfair tax that targets only one industry would be ruinous to the Teamsters, leading to the loss of thousands of family-sustaining jobs,” Grace warned.

Just the tip of the iceberg

While thousands of layoffs seems far fetched, we must consider that the layoffs at Pepsi could be the beginning of something huge.

In a statement to the Inquirer, Bob Brockway, COO of Canada Dry Delaware Valley announced plans to lay off 20% of its employees come March.

As for rival Coca-Cola, they haven’t detailed any layoff plans.

Blame it on the tax

Frank McGorry, president and general manager of Coca-Cola Refreshments Tri-State Metro Unit also put blame on the tax. “Everything we’ve said would happen by enacting this tax is proving to be true. We are evaluating how we will address the impact of this tax on our business. People are leaving the city to shop, small businesses are getting hurt, consumers are unhappy and people are losing their jobs,” McGorry tells the Philly Voice .

The potential rippling effect on Philadelphia’s distributors is due to the fact that the new tax is levied directly on distributors.

Distributors can absorb the tax themselves, or pass it on to consumers. In either case, distributors or their employees are threatened.

Soda tax supporters

Soda tax proponents are pumping the breaks on the blame.

Mayor Kenney argues that the soda industry is acting out of greed, passing the tax along to consumers and threatening layoffs, rather than lowering their own pay.

Bless his soul, did Kenney actually believe taxes wouldn’t be passed on to consumers? Mayor Kenney also believes that the soda industry may be leveraging the layoffs to scare other cities away from enacting their own version of the tax.

Old trend, new tactics

It may be too late. The soda tax trend has already taken root. Last November, three California cities- Albany, Oakland and San Francisco along with the town of Boulder, Colorado adopted their own soda tax.

Unlike California’s soda taxes, which aren’t earmarked for a specific purpose, Philadelphia’s tax funds are reserved for Pre-K services, community schools and parks renovations. Click To Tweet

Also important to note, Mayor Kenney framed the sugar tax debate as a matter of revenue, not a public health crusade.

Bold move, cotton. Let’s see how this plays out

This was a bold move and a play that other cities may adopt as budgets tighten. Sin taxes are nothing new, according to this map, they’re levied across our whole “sinful” country.

However, framing the debate so strongly around revenue rather than health benefits is a new move and a move businesses should keep an eye one, even if they aren’t selling soda. When budgets are limited, are all vices may be up for grabs.

#SodaSoDone

Staff Writer, Arra Dacquel is a San Francisco based writer. She has a bachelor’s degree in political science from UC Davis and is currently studying web development. She’s obsessed with tech news and corgis, but not in that order.

Continue Reading
Advertisement
1 Comment

1 Comment

  1. Pingback: Microsoft layoffs by the thousands announced - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

Top 15 jobs that will see hiring growth in 2020

(BUSINESS NEWS) LinkedIn releases the 2020 Emerging Jobs Reports which looks at trends and growth. A lot of changes are happening, especially in tech.

Published

on

jobs in tech

While many are hanging their stockings by the chimney with care, we’re digging into the end-of-year data that runs rampant at this time of year – and we love it. Such data has been released from LinkedIn in the form of its 2020 Emerging Jobs Report.

LinkedIn explains this report as: “The Emerging Jobs analysis is based on all LinkedIn members with a public profile that have held a full-time position within the U.S. during the past five years. Once the talent pool has been identified, we then calculate the share of hiring and Compound Annual Growth Rate for each occupation between 2015 and 2019 to identify the roles with the largest rate of hiring growth. These become our Emerging Jobs.”

The report finds that trends for U.S. jobs in 2020 will see data and artificial intelligence continue to grow as time marches on. Additionally, data science is booming and is starting to replace legacy roles.

The trends also state that increased insurance for mental health is driving up demands for behavioral health professionals. Lastly, the report finds that it’s never a bad time to be an engineer.
As for overall industry trends, it was found that online learning is here to stay while more smart cars are coming our way. Also, the future of tech will rely heavily on people skills.

Location trends found that secondary cities have the jobs (like Austin, hollaaaa!) and tech is taking over Washington D.C. And, as pointed out in many of my articles this year, remote work will continue to become more and more mainstream.

The report then listed the top 15 emerging jobs in the U.S. These include:

1. Artificial Intelligence Specialist (74% annual growth)
2. Robotics Engineer (40% annual growth)
3. Data Scientist (37% annual growth)
4. Full Stack Engineer (35% annual growth)
5. Site Reliability Engineer (34% annual growth)
6. Customer Success Specialist (34% annual growth)
7. Sales Development Representative (34% annual growth)
8. Data Engineer (33% annual growth)
9. Behavioral Health Technician (32% annual growth)
10. Cybersecurity Specialist (30% annual growth)
11. Back End Developer (30% annual growth)
12. Chief Revenue Officer (28% annual growth)
13. Cloud Engineer (27% annual growth)
14. JavaScript Developer (25% annual growth)
15. Product Owner (24% annual growth)

When looking at how your company is growing, it is worthwhile to look at how the world around you is expanding, and if you’re job hunting, this list shows job titles that are quickly getting more competitive!

Continue Reading

Business News

Unicorn goes extinct – is the scooter movement in trouble?

(BUSINESS NEWS) The scooter war may be coming to an end with many companies, like Unicorn, closing their doors and refusing to fulfill orders and/or refund customers.

Published

on

unicorn scooters

Scooters, scooters, scooters – it seems like that’s all us city-dwellers have heard about these past 3 years.

Since the inception of rental scooters in Santa Monica in 2017, more and more companies have thrown their hats into the ring, resulting in intense competition. Through this brand rivalry, many of the scooter-centric companies have gone bust, including the most recent shut-down, Unicorn.

Unicorn is a newer brand of electric scooters, under the brand name Unicorn Rides. The supposed up-and-coming scooter company was created by well-known tech CEO, Nick Evans, the maker of the ever-popular tracking device, Tile.

Unicorn was meant to be a product that wowed customers, with special bells and whistles not seen before with other scooter brands. The company boasted a unique, rugged and waterproof battery, enhanced motor output for riding through hilly areas, an integrated smartphone app, and even extra storage for grocery shopping and other errands.

But when Unicorn sent a very worrisome email to a large portion of its customers last week (350 paid-up, un-served customers), it quickly became clear that the company wasn’t going to live up to the hype. In fact, it was obvious that the company wouldn’t live any longer at all.

The gist of the email included an announcement that the company would be shutting down, strictly due to finances. Apparently, the company spent the majority of it’s money on Google and Facebook ads, as well as loan repayments which, they explained, resulted in their inability to fulfill existing orders or refund anyone who had already purchased the $699 device – a huge blow to customers.

In the email, Evans stated that they actually could have continued to press forward with production and fulfillment, and that it may have been enough to fund the business, but they ended up opting against this route as a lack of sales could have resulted in future customer upsets.

In the same email, Evans went on to more deeply explain their money trouble: “Unfortunately, the cost of the ads were just too expensive to build a sustainable business. And as the weather continued to get colder throughout the US and more scooters from other companies came on to the market, it became harder and harder to sell Unicorns, leading to a higher cost for ads and fewer customers.”

This explanation isn’t leaving a better taste in their customers’ mouths though. Buyers like Rebecca Buchholtz are very unhappy, and rightfully so. Buchholtz told The Verge “I am upset he basically robbed everyone of his customers and is closing without delivering any scooters.”

It’s important to mention that Unicorn did not go the typical funding route for its product, either. Instead of just using angel investors and investment firms, Unicorn chose to go a different route – scooter pre-orders. Crowd-funding through pre-orers is not a completely unheard of avenue, though. Unagi Scooters, for example, successfully funded its first campaign for its new scooter (appropriately named Unagi) on Kickstater in 2018, raising over $242K. The main difference here is that Unicorn’s “pre-order” was not through a platform such as Kickstarter, which actually protects buyers from incidents like this.

In his email, Evans alludes that they’re still trying to refund (at least partially) their customers, but he also specifically said that it “looks unlikely”. Their website is still working, but pages like their shipping update and pre-order cancelation pages, which still show up in Google’s search results, are now dead links, resulting in 404 errors. This makes for a pretty clear statement on what’s to happen with the company’s existing customers.

unicorn 404

But it’s not over yet! If you are an affected customer of Unicorn’s, don’t fret. Most banks have fraud-protection and buyer-protection, so if you pre-ordered using a credit or debit card, we recommend contacting your bank.

Continue Reading

Business News

Court green lights demoting an employee for physical disabilities

(BUSINESS NEWS) Court rules the Americans with Disability Act doesn’t fully cover employees – but is the law actually open to some interpretation?

Published

on

disabilities wheelchair

Wrongful termination is a hot topic these days, especially in relation to employees with disabilities. It’s commonly thought that if you have a disability, you’re safe and that no one can fire you for simply being disabled. But did you know that’s actually a myth?

When ex-Sheriffs Deputy Brigid Ford injured herself on the job, she was faced with the hard truth about the law surrounding disabilities.

Ford, who worked 12 years as a Sheriff’s Deputy, was injured when a car ran a red light and ran into her patrol car, smashing her hand. This resulted in constant pain and an inability to use her right hand. She spent the next few months working in alternative, lighter-duty areas of the department. But even after a year, she was unable to return to her initial post.

Because of this, the Sheriff’s department offered her 3 options:

1. She could move to a civilian job, with a cut in pay. This would include any associated accommodations she may need.

2. She could resign.

3. If she didn’t choose either of the above, they claimed she could be terminated.

Ford ended up choosing a demotion, and then elected to sue the department for violating the Americans with Disability Act (ADA). At the end of these proceedings, the court found that the demotion was reasonable.

But is this really the standard application for the law?

Although there are many myths associated with the ADA, the law clearly states that in order to provide reasonable accommodation for an employee, you must go through an “interactive process”, which means there must be some back and forth to accommodate the employee.

In Ford’s case, she was unable to continue her initial job as she was not provided with all the accommodations she requested and therefore, only had enough accommodations to continue with a civilian job.

What’s strange about this situation is that she was provided with a few in-depth provisions that would meet her needs, such as training for her supervisors, extra breaks when needed, so she could deal with her pain, and a more ergonomic work station. However, when she requested a voice-activated software for her computer, which would limit her need to use her right hand, she was denied.

The court stated that if there had been a lateral position available, with no decrease in pay, and Ford was qualified for the job, the ADA would have protected Ford a bit better, favoring this option over demotion.

Nevertheless, with the rise of documented disabilities in America, the lines the ADA draws for employees and employers-alike continue to seem blurred. Just like many other laws, the act seems to be open to some interpretation, but at the end of the day, when something like this is brought to the court system, American citizens are truly at the mercy of our court’s Judges and how they translate the laws.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!