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Home Blog Page 3784

NYSC Act: A Protest for Total Overhaul

By
Stanley Alieke
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0

There is an ongoing uproar on social media against organizations (both private and public) that hire the National Youth Service Corps (NYSC) members as associates and do not pay them at all or do not pay them well. There is a strong demand that such organizations should at least pay the corp members in their employ the minimum wage. 

This online protest, I can say started from an X  (twitter) user  posting that his primary place of assignment (PPA) pays him a meagre sum of N2000 as a monthly salary and he shared the receipt of payment for the month of January which was N2000. 

The million-dollar question is, are organizations that hire corp members statutorily obligated to pay them? 

The payment of “corpers” as we all know, does come directly from the government and legally speaking, there is nowhere it is provided in any statute that places Nysc members attached for their “PPA” should pay them at the end of the month.

What the NYSC act (cited as The national youth service corps act cap n84 lfn, 2004) provided in section 18 is that organizations should provide accommodation and means of transportation for the corpers in their employ and if there is no accommodation and means of transportation available, such organization should pay the corper 250 naira as an allowance for accommodation monthly and 150 naira as an allowance for transportation monthly. 

Here are the full provisions of section 18 of the NYSC Act which provided for the statutory requirements of employers to the Nysc associates.

  1. 18: “An employer of corps members shall provide the following, that is (a) basic accommodation and where it is not available, pay the minimum sum of N250 per month in lieu of accommodation; 
  • all welfare facilities normally provided for the regular staff including Medical Service
  • transport or where it is not available, pay the minimum sum of Nl50 per month in lieu of transport”. 

Therefore, by statutory implication, employers are not statutorily obliged to pay their Nysc associates, it is a matter of personal volition that an employer can choose to pay an Nysc associate. No doubt that these laws are long due for amendments as they were passed in the 70s and have been extant till date when N250 cannot buy you a cup of rice. 

I for one no longer see the need for this mandatory one-year youth service and I have never failed to call for it to be scrapped whenever I get the opportunity, especially in my previous essays but if the government feel that the youth service corps should still be kept in operation then laws should be amended so that at least the Nysc associates should be paid, not just be paid, but be paid properly or at least paid they should be paid the minimum wage and be treated as workers (properly so called) and every rights and benefits that accrue to a Nigerian worker as provided in the labour act and other relevant statutes should be accruable to Nysc associates including right to fair wages/allowances, right to a paid leave, right to health benefits etc. 

On the other hand, organizations who apply/request for Nysc associates or accept Nysc associates should also be willing and eager to pay them. If you cannot afford to pay them, then you should not request them or accept them. Do not use corpers that you do not pay to boost your staff strength, that is wickedness, to say the least; even the holy book mandated that “a labourer deserves to be paid”.

The Population Crisis is Real

By
Paul Ugbede Godwin
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The population crisis is real, and it is affecting our planet in many ways. I will discuss some of the causes and consequences of the population crisis, as well as some possible solutions.

The population crisis refers to the situation where the human population exceeds the carrying capacity of the Earth, meaning that there are not enough resources to sustain the current and projected number of people. According to the United Nations, the world population reached 7.9 billion in 2020 and is expected to grow to 9.7 billion by 2050 and 10.9 billion by 2100. Some of the causes of the population crisis below.

Falling Mortality Rate

One of the primary causes of population growth is the decline in mortality rates, especially among infants and children. Thanks to advances in medicine, sanitation, nutrition and education, more people are surviving and living longer than ever before.

The World Health Organization (WHO) reports that the global infant mortality rate has decreased from 8.8 million deaths in 1990 to 4.1 million deaths in 2017. This is a welcome public health achievement, but it also means that more people are adding to the demand for resources and services.

Underutilized Contraception

Another cause of population growth is the lack of access to or use of contraception among women of reproductive age. According to the United Nations Population Fund (UNFPA), there are 218 million women in developing regions who want to avoid pregnancy but are not using a modern method of contraception.

This results in unintended pregnancies, high fertility rates and rapid population growth. Some of the barriers to contraceptive use include lack of availability, affordability, information, education, social norms and gender inequality.

Lack of Education for Girls

A third cause of population growth is the low level of education for girls in many parts of the world. Education is a key factor in empowering women and reducing fertility rates. Studies have shown that women with higher levels of education tend to have fewer children, marry later, have better health outcomes and contribute more to the economy and society. However, millions of girls are still out of school or drop out early due to poverty, discrimination, violence and cultural practices.

Migration

People move from rural to urban areas or from poorer to richer countries in search of better opportunities, services, and living conditions.

Some of the consequences of the population crisis are:

Environmental degradation: More people mean more demand for natural resources such as land, water, energy, and food, which leads to deforestation, soil erosion, water pollution, greenhouse gas emissions, and biodiversity loss.

Social problems: More people mean more competition for scarce resources such as jobs, housing, education, and health care, which leads to poverty, inequality, conflict, crime, and violence.

Economic challenges: More people mean more pressure on the infrastructure, public services, and social security systems, which requires more investment and expenditure from governments and individuals.

Some of the possible solutions to the population crisis are:

Family planning: Providing access to contraception, information, and education to enable people to make informed choices about their reproductive health and rights.

Empowering women: Promoting gender equality, education, employment, and political participation for women to reduce their vulnerability and dependency on men and enhance their autonomy and decision-making power.

Sustainable development: Adopting policies and practices that balance the economic, social, and environmental needs of the present and future generations without compromising the well-being of either.

Population control: Implementing measures to limit or reduce the growth rate of the human population such as incentives or disincentives for having children, voluntary or compulsory sterilization, or one-child policies.

Technological innovation: Developing and applying new technologies that can increase the efficiency and productivity of resource use, reduce waste and pollution, and improve the quality of life for people.

Implication of PayPal firing 9% of its staff, approximately 2,500 employees

By
Paul Ugbede Godwin
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0

PayPal, the online payment giant, announced on Tuesday that it has laid off 9% of its global workforce, affecting around 2,500 employees. The company said the move was part of a restructuring plan to streamline its operations and focus on its core business.

The layoffs come as PayPal faces increasing competition from rivals such as Stripe, Square, and Apple Pay, as well as regulatory challenges in some markets. PayPal also reported lower-than-expected earnings for the fourth quarter of 2020, with revenue of $6.12 billion and earnings per share of $0.86, missing analysts’ estimates of $6.17 billion and $0.88, respectively.

PayPal CEO Dan Schulman said in a statement that the company is “making significant changes to position PayPal for future growth and success”. He added that the company is “grateful for the contributions of the impacted employees and will support them through this transition”.

PayPal said it expects to incur pre-tax restructuring charges of approximately $70 million in the first quarter of 2021, related to severance and other employee-related costs. The company also said it expects to save about $300 million annually from the layoffs.

PayPal has more than 28,000 employees worldwide and serves over 375 million customers and merchants in more than 200 markets. The company said it will continue to invest in new products and services, such as cryptocurrency, buy now pay later, and QR code payments, to enhance its value proposition and drive growth.

The decision came as a shock to many PayPal workers, who were notified of their termination via email or phone calls. Some of them took to social media to express their anger and frustration, while others shared their stories of working at PayPal and thanked their colleagues for their support.

Many customers also reacted to the news, with some expressing sympathy for the laid-off workers and others questioning how the layoffs will affect the quality and security of PayPal’s services.

PayPal CEO Dan Schulman said in a statement that the layoffs are necessary to “align our resources with our long-term strategic vision” and to “create a more agile and efficient organization”. He added that the company will provide “generous” severance packages and outplacement services to the affected employees, and that it will continue to invest in its core businesses and growth opportunities.

However, some analysts and industry experts are skeptical about the rationale and impact of PayPal’s move. They argue that the company is facing increasing competition from rivals such as Stripe, Square, Venmo, and Apple Pay, and that it needs to innovate and improve its customer experience rather than cut its workforce.

They also point out that PayPal has been profitable for years, and that it generated $6.1 billion in revenue and $1.2 billion in net income in the third quarter of 2023.

Some critics also accuse PayPal of being insensitive and irresponsible in handling the layoffs, especially amid the ongoing Covid-19 pandemic and the economic downturn. They say that the company should have communicated better with its employees and customers, and that it should have explored other alternatives to reduce costs, such as voluntary buyouts, salary cuts, or furloughs.

PayPal’s stock price dropped by 4% after the announcement, reflecting the negative sentiment among investors and analysts. The company is expected to face more challenges and scrutiny in the coming months, as it tries to execute its restructuring plan and maintain its market position.

Tesla’s $55.8 Billion Compensation Package for Elon Musk Voided by Delaware Court

By
Samuel Nwite
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0

Delaware Chancery Court Chief Judge, Kathaleen McCormick, has ruled to void Tesla CEO Elon Musk’s extravagant $55.8 billion compensation package, stating that it was excessive and marred by an insufficiently independent process. 

The court found that Musk’s significant influence over Tesla, combined with the lack of independence in the decision-making process, rendered the compensation plan invalid.

“This decision dares to boldly go where no man has gone before, or at least where no Delaware court has tread. The collection of features characterizing Musk’s relationship with Tesla and its directors gave him enormous influence over Tesla,” Judge McCormick remarked in her ruling.

The judge highlighted Musk’s multi-faceted role as the CEO, Chairman, and founder, coupled with his substantial equity stake of 21.9%, as factors that contributed to his dominance in the decision-making process. She noted that Musk controlled the Board of Directors (BOD), and the directors who approved the compensation plan were not truly independent. Importantly, shareholders were not adequately informed of this controlled relationship.

“The primary consequence of this finding is that the defendants bore the burden of proving at trial that the compensation plan was entirely fair. Delaware law allows defendants to shift the burden of proof under the entire fairness standard where the transaction was approved by a fully informed vote of the majority of the minority stockholders,” Judge McCormick explained.

However, the defendants failed to prove the stockholder vote was fully informed, as the proxy statement inaccurately described key directors as independent and omitted crucial details about the process. This left the defendants attempting to justify the fairness of the largest potential compensation plan in the history of public markets.

“Further, the shareholders who approved the compensation plan weren’t made aware of this controlled relationship. Hence, the $55.8B comp plan is voided,” McCormick ruled.

Musk’s compensation package, approved by around 80% of Tesla shareholders in 2018 when the company’s valuation was approximately $60 billion, required him to achieve significant market cap growth and meet ambitious revenue and profit targets. The milestones ranged from a $100 billion valuation to a final milestone of $650 billion. If Musk successfully reached these milestones, he would be entitled to the full $55 billion compensation package.

Remarkably, Musk achieved all the milestones, contributing to a substantial increase in Tesla’s market valuation, which currently stands at around $600 billion. The company’s financial success during this period has been characterized by robust revenue growth, profitability, and the creation of significant shareholder value.

However, shareholder Richard Tornetta filed a lawsuit in 2019, claiming that the compensation package was excessive and the board had not acted in the best interest of shareholders. 

In the broader context of Musk’s compensation, it’s essential to note that his controversial compensation plan raised eyebrows when it was first proposed. Approved by the majority of shareholders in 2018, the plan set ambitious targets, tying Musk’s compensation directly to the company’s market valuation and financial performance.

However, the result of this legal challenge mounted by Tornetta, who held a mere 9 shares of Tesla, has held many in bewilderment.

“Rarely, if ever, does a Delaware court rescind a compensation agreement,” said Charles Elson, a corporate governance expert at the University of Delaware. “To my memory, it hasn’t happened.”

Now, Tesla finds itself at a crossroads. The company can choose to appeal the court’s decision, potentially escalating the legal battle to higher courts, including the Delaware Supreme Court and even the U.S. Supreme Court. Alternatively, Tesla may opt to develop an alternative compensation package for the contentious 2018 agreement.

Dan Ives, a Wedbush Tech analyst, views the court ruling as a potential turning point.

“Delaware Court ruling a shocker ruled against Musk/Tesla BUT this now clears the path for the Board to create a new pay package and incentives that could supersede this and could solve a lot of the Musk ongoing frustrations. Also could further lock Musk into Tesla,” he said.

Musk’s response to the court ruling included a recommendation to fellow entrepreneurs. He posted on Twitter, “Never incorporate your company in the state of Delaware,” emphasizing a dissatisfaction with the legal implications of the state’s jurisdiction. He followed up with a suggestion to incorporate in Nevada or Texas, especially if one prefers shareholders to have a more decisive role in company matters.

Musk even conducted a poll on his social media platform X, asking users whether Tesla should change its state of incorporation to Texas, where the company’s physical headquarters are located. An overwhelming 87% of respondents voted in favor of the move. Musk promptly declared that Tesla would initiate a shareholder vote to transfer the state of incorporation to Texas. 

The court’s ruling has cast a shadow over Musk’s fortune, threatening his position in the centi-billionaire league. Musk was recently dethroned as the world’s richest man by the French Businessman and CEO of LVMH, the world’s largest luxury goods company, Bernard Arnault. 

Arnault’s fortune now stands at $207.8 billion, following a substantial increase of $23.6 billion on Friday, surpassing Musk’s $204.5 billion, per Forbes’ real-time billionaires list.

Okta Announces Job Cuts of 400 Employees, As Zoom Fires About 150 Workers

By
Ojukwu Emmanuel
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0
Virtual event or meeting has gone mainstream, benefiting Zoom

American identity and access management company Okta has announced plans to lay off approximately 400 employees, which is about 7% of its global headcount.

The layoff is coming a year after the company announced plans to downsize its workforce by 5%, which is about 300 employees.

In an email sent to employees Chief Executive Officer (CEO) of Okta, Todd McKinnon said the decision was necessary for the company to grow profitably, adding that costs are still too high. He further added that the firm needed to be more thoughtful about where it was investing in order to achieve long-term success.

Part of his message reads,

“After a thoughtful FY25 business planning process, the leadership team and I have made the difficult decision to implement a workforce reduction impacting about 7% of our company, or approximately 400 people. In order to grow profitably, we need to run the business with greater efficiency. While we’ve taken steps in the right direction, the reality is that costs are still too high.

“We need to be mindful of our overall spend so we can continue to invest in the areas, products, and routes to market with the most opportunity. To capture our massive potential and build an iconic company, we must be thoughtful about where we place our bets. This action is a proactive measure to help set the company up for long-term success”.

The company has promised to support all affected employees during this transition to provide them with all resources to help them through this period. Impacted employees in the U.S. will receive transition support that includes additional time on payroll, the March RSU vest, cash severance, extended healthcare coverage, job placement resources, and support for anyone on a company-sponsored visa.

Following the recent downsizing of its workforce, Okta disclosed that it expects to record an insignificant adjustment to its stock-based compensation expense in the first quarter of fiscal 2025 related to equity compensation for employees who are terminated.

Recall that last year October, after Okta announced its Third Quarter Q3 revenue which grew 21% year-over-year, the company forecasted for the full year fiscal 2024, total revenue of $2.243 billion to $2.245 billion, representing a growth rate of 21% year-over-year

Non-GAAP operating income of $283 million to $285 million, which yields a non-GAAP operating margin of 13% and Non-GAAP diluted net income per share of $1.47 to $1.48.

The San Francisco-based company joins the likes of other tech companies such as Google, Amazon, and PayPal, amongst others, that have announced layoffs since the start of the year. Reports reveal that nearly 24,000 tech workers lost their jobs in January alone, even as many tech companies saw their stock prices continue to grow.

Zoom Cut About 150 Jobs, Announces Plans to Hire in Critical Areas For Year 2024

Video conferencing app Zoom has announced the latest job cuts of 150 employees, as it plans to hire in critical key areas for the year 2024.

Bloomberg reports that the number of employees leaving the company is less than 2% of its workforce.

The report further states that the job cuts aren’t across the entire company, as Zoom plans to hire in 2024, particularly in areas like Artificial Intelligence, Sales, and Engineering.

Speaking on the recent job cuts, a spokesperson at the company said,

“We regularly evaluate our teams to ensure alignment with our strategy. As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future”.

Recall that Zoom exploded in popularity at the start of the COVID-19 pandemic as workers turned to the video-conferencing platform to stay in touch with colleagues, friends, and family. This forced the platform to increase recruitment of workers during the pandemic to keep up with the high demand. But as the pandemic subsided and many workers returned to the office, Zoom stock stumbled.

Post-lockdown, the company’s shares fell about 90% as the company’s investors struggled to adapt to a post-COVID world. Furthermore, Zoom’s stock dropped 10%, after the company slashed its annual sales forecast and reported its slowest quarterly growth.

Last Year February, Zoom cut around 1,300 workers, or about 15% of its workforce, as the company braced for the uncertainty of the global economy.

To deal with the tumbling revenue growth, the company has been making strategies to reinvest in new businesses. Also, it has been spending more on product development and marketing activities to develop products like the cloud-calling service Zoom phone and conference-hosting offering Zoom rooms.

This year 2024, a new wave of job cuts has hit several tech companies, which has seen companies such as Amazon, Microsoft, and Salesforce have announced workforce reductions.

Last month, Microsoft cut1,900 positions in its gaming division, Google announced the elimination of hundreds roles across the company; and Amazon laid off employees across its Prime Video, MGM Studios, Twitch and Audible divisions.

According to layoffs.fyi, more than 100 tech companies have laid off about 30,000 employees since the start of the year.

One explanation for the January surge as companies budget for the year ahead, is that they have learned that they can do more with less. Also, the AI hype has raised concerns in many corners of the economy about the declining need for human labor as technology gets smarter.

It is already having a significant impact on the workforce, as AI demand has intensified, that some tech companies are cutting headcount in parts of the business to invest more heavily in developing AI product.

Okta is the latest tech company to register layoffs, letting go of roughly 400 employees globally, or 7% of its staff, the company said on Thursday. In an email sent to employees, CEO Todd McKinnon said costs were “still too high.” The layoffs at the San Francisco-based identity management giant come just a year after it cut about 300 jobs due to “overhiring.” It comes as big firms including Amazon and Google have announced rounds of job reductions this year, continuing to reverse some of their pandemic hiring sprees.

  • Videoconferencing company Zoom cut roughly 150 jobs this week, or less than 2% of its workforce as they evaluate teams “to ensure alignment” with their strategy, Bloomberg reports, citing anonymous sources. (LinkedIn News)

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