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Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger.
Hi, I’m Dieter!
And I’m Maitane! We’re both reporters who cover environmental and social issues for The Wall Street Journal. We're always talking about how these topics shape the choices people make every day, and we’d like to bring you into our discussion!
This week, we talk about how companies are treating essential workers on the frontlines of the coronavirus crisis.
I’ve noticed some companies are paying their workers a bonus to recognize them for serving customers when most people are staying home. Companies call it “hero pay” and critics call it “hazard pay” and it’s temporary. Amazon, Kroger and Target are among those paying their workers a bonus of $2 or $3 an hour.
Other big companies like UPS, Walmart and Starbucks have also expanded paid sick leave during the pandemic. Nonprofit JUST Capital says that 42 of America’s 100 largest publicly-traded employers are providing additional paid sick leave on top of existing benefits, but 12 have set barriers like a positive Covid-19 test. I wonder whether businesses will make these benefits permanent for future global emergencies.
You mentioned Kroger and Amazon earlier, but how long can we expect them to keep paying the extra cash?
Companies are rethinking the bonuses as states reopen and people return to stores. Many employees and unions disagree with the decisions because there’s still a risk of infection. Amazon plans to end its $2 bonus and double overtime pay in the U.S. and Canada at the end of the month. It says it has spent nearly $800 million in pay for hourly employees and partners and is providing flexibility with leave of absence options.
Kroger, whose sales in March were 30% higher than a year ago, paid its workers the $2 hourly bonus from April through mid-May and last Friday said it would give is full-time workers a $400 “thank you” bonus.
We’ll definitely look out for how those bonuses play out. On the finance side, this year $45.7 billion has already poured into sustainable funds that invest in firms with stronger labor and environmental practices than their peers. You also wrote about how those funds took a lighter hit during the coronavirus market crash. The resilience of sustainable funds makes me think investing around social and environmental issues is here to stay.
What am I looking at? Investors either take out or put money into funds that hold various companies’ stocks. These are known as inflows and outflows. The chart above shows the global flows of sustainable funds versus all funds in the first quarter of 2020, ended March 31.
What else have you got your eye on, Maitane?
Misinformation about the coronavirus is rapidly spreading across social media, an issue 78% of Americans are worried about according to the Knight Foundation. We should look out for the role social media companies are going to play in stopping it. That’s why Twitter is adding labels to tweets that have disputed or misleading information about the virus.
Good point! Let’s open it up to our readers: What do you think companies should do to support their workers during the pandemic?
Share your thoughts below or catch us on Twitter. Your words could appear in our next edition! Have a great weekend and remember to wash your hands. 👋
Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music, skateboarding and yoga (but I’m bad at both). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardomaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com; Instagram: @violian.tammy