Blog

The nationwide labor shortage has gotten so bad that a desperate McDonald’s location in Illinois is offering a free iPhone after six months of work to try to lure new employees.

A photo of a window display advertising the promotion, which read “free iPhone after 6 months employment & meet employment criteria,” went viral on Twitter after it was shared over the weekend.

While users joked about all of the potential loopholes to the offer, it shows how hard a time business owners are having attracting employees into the workforce just as the economy is emerging from the pandemic. Restaurants, in particular, are also preparing for the busy summer season.

The location offering the deal is in Altamont, Illinois, a staff member at the location confirmed to The Post.

A McDonald’s spokesperson added that, “franchisees around the country are offering various incentives around hiring but this is not a corporate backed initiative.”

Mark Salebra, chair of the National Franchisee Leadership Alliance, said that McDonald’s franchisees “offer a variety of unique employee programs and benefits locally” to attract and retain workers.

“To remain employers of choice and further differentiate what we have to offer, owner/operators are leading an effort to implement an enhanced Employee Value Proposition,” he added. “This platform includes a set of industry-leading best practices on pay and benefits that independent owner/operators can implement however they deem appropriate to stay competitive in their local markets.”

The promotion prompted some Twitter users to ridicule the company, joking that it would probably give employees an older model iPhone. Others questioned why the company doesn’t raise wages to attract new workers. 

The promotion comes as the fast-food industry faces a nationwide labor crunch that’s even forced some chains to cut hours. Fewer employees are returning to the workforce than expected, and restaurants, in particular, are trying to meet demand as it comes roaring back.

Chipotle, Taco Bell and other companies have announced new perks and raises in an effort to attract new workers. McDonald’s has announced massive hiring efforts across the country, including an effort to hire 25,000 new workers just in Texas.

McDonald’s announced earlier this month that it’s raising the hourly wage of its employees at company-owned locations by an average of 10 percent over the next several months. But that leaves out stores owned by franchisees, the overwhelming majority of its restaurants. 

McDonald’s announced that it’s raising the hourly wage of its employees — but only at company-owned locations — not those owned by franchisees.REUTERS/Andrew Boyers

“If you want to look like you’re raising wages to $15 an hour, then you should actually raise wages to $15 an hour, for every McDonald’s worker in this country, minimum,” Rep. Alexandria Ocasio-Cortez said at a virtual event last week. “We’re not buying it. We’re not falling for it.”

Some economists and politicians have blamed pandemic-boosted unemployment benefits for the labor shortage. They say that the extra extra $300 in additional unemployment benefits every week add up to more than what businesses can afford to pay people, particularly for entry level jobs.

At least 23 states with Republican governors are now looking to lure workers back into the labor market by withdrawing from the federal program that provides the extra benefits.

Various states, including Texas, Oklahoma, Indiana and Florida have moved to end the benefits this summer. They were set to expire in early September. 

The White House, however, has defended the extra benefits, saying that businesses should pay people more. President Biden has added that, “If you’re receiving unemployment benefits and you’re offered a suitable job, you can’t refuse that job and just keep getting the unemployment benefits.”

Proponents of keeping the extra benefits say that employers should offer higher pay to attract workers. 

Abercrombie & Fitch reported a bigger-than-expected 61 percent jump in first-quarter sales on Wednesday, as the apparel retailer benefited from shoppers returning to its stores and using its beefed-up online business.

Shares of the Hollister and Gilly Hicks owner rose 11 percent as it also posted a surprise quarterly profit and predicted second-quarter net sales to be at or above the pre-pandemic levels recorded in 2019.

The company, largely reliant on younger customers, also said it expected a more normal back-to-school selling season this year as physical classes restart after a pandemic-induced halt.

The retailer’s first-quarter sales were already 6 percent higher than 2019 levels, thanks to strong growth in its US business after the lifting of COVID-19 restrictions.

Its digital sales soared 45 percent in the quarter to account for more than half of the total, as the company’s investments to offer services such as curbside pickup during the health crisis paid off.

New Albany, Ohio-based Abercrombie, which earlier this month launched its Social Tourist brand in partnership with TikTok influencers Charli and Dixie D’Amelio, said it planned on investing more than $50 million in its digital channel this year.

The retailer reports a 61 percent jump in first-quarter sales on shoppers’ returning as stores begin to reopen as pandemic restrictions ease.SOPA Images/LightRocket via Getty Images

“As we evolve our model, the line between stores and digital continues to blur,” Chief Financial Officer Scott Lipesky said.

Overall net sales rose 61 percent to $781.4 million, beating a Refinitiv IBES estimate of $687.4 million.

Excluding items, the company earned 67 cents per share, compared with estimates of a 38 cents loss, helped by lesser discounting.

German police are investigating whether a fire that broke out overnight at the construction site of Tesla’s first European gigafactory had a political motive, after far-left activists claimed responsibility.

The fire at Gruenheide in the eastern state of Brandenburg early Wednesday morning damaged several power cables leading to the Tesla site and an area of around 3 square meters, said a spokesman for the LKA state criminal investigation office.

The spokesman said arson was not being ruled out and investigators were examining a letter that circulated on social media Wednesday and claimed responsibility.

The letter, which was published on a radical left platform, said it had cut the power supply to the Tesla site by setting fire to six high-voltage cables above ground.

“Tesla is neither green, ecological nor social,” said the letter, according to the LKA spokeman.

A road sign reading “Tesla Street” standing at the edge of the Tesla factory construction outside Berlin, where authorities are now probing a possible arson fire set by far-left activists.Patrick Pleul/picture alliance via Getty Images

Tesla, which has said it could produce up to 500,000 Model Y cars at the site annually, delayed the opening of its gigafactory to late 2021 from an initial July 1 date after adding plans to set up a battery cell plant there.

Tesla Chief Executive Elon Musk has complained about German red tape needed for lengthy approval processes after construction of the factory was held up by environmentalists concerned about local wildlife and water resources.

Federal and state officials have announced plans to develop two wind farm sites off the coast of California.

The projects could ultimately generate enough electricity to power about 1.6 million homes, the White House said Tuesday.

Wind power is a key part of President Biden’s plan to shift toward renewable energy and reduce greenhouse gas emissions. The two announced projects are a major step toward the White House’s goal of doubling US offshore wind production by 2030.

“The offshore wind industry has the potential to create tens of thousands of good-paying union jobs across the nation, while combating the negative effects of climate change,” Secretary of the Interior Deb Haaland said in a statement.

One of the project sites would be off the central coast of California while the other would be off Northern California, near the Oregon border. The White House said they would be the first US commercial-scale wind projects off the Pacific Coast.

One goal of the Biden administration is to double US offshore wind production by 2030.Stefani Reynolds-Pool/Getty Images

“Developing offshore wind to produce clean, renewable energy could be a game changer to achieving California’s clean energy goals and addressing climate change — all while bolstering the economy and creating new jobs,” Gov. Gavin Newsom said in a statement.

The announcement came just weeks after the White House approved the first commercial-scale offshore wind project in US waters off the coast of Massachusetts. 

The Massachusetts site will use General Electric’s massive Haliade-X wind turbines. It’s not yet known what company will provide and maintain the turbines for the two sites off California. 

General Motors and Lockheed Martin will develop a vehicle to drive NASA astronauts around on the moon’s surface, they said Wednesday, competing for a space project that could also promote their brands on Earth.

GM and Lockheed said they would collaborate to make a battery-powered, autonomous Lunar Terrain Vehicle for NASA’s Artemis lunar landing program, which aims to return US astronauts to the moon as early as 2024.

NASA is expected to launch a competition to develop lunar vehicles in its Artemis moon landing program. The agency has outlined plans for a variety of lunar vehicles that can carry human explorers, haul commercial payloads or traverse remote regions of the moon on missions lasting as long as 100 days.

Elon Musk’s rocket launch company, SpaceX, won a $2.9 billion contract last month to build the spacecraft to carry NASA astronauts to the moon. That award is being challenged by Jeff Bezos’ BlueOrigin and defense contractor Dynetics.

Lockheed and GM have a history in space. Lockheed has worked on NASA space projects for 50 years and GM helped develop the original NASA lunar rover, which ferried NASA astronauts on the surface of the moon in the early 1970s.

The NASA lunar rover that was developed by General Motors and first used during 1971’s Apollo 15 mission. GM and Lockheed Martin are now working on a new vehicle to drive astronauts around the moon.Getty Images

For GM, getting back into the space business offers a fresh way to compete with Musk’s Tesla and SpaceX for the attention of investors, customers and future employees.

Musk has used SpaceX to promote Tesla’s electric vehicles, including launching a Tesla Roadster into deep space.

Lockheed and GM said their proposed lunar vehicle would use GM battery technology to travel “significantly farther distances” than the Apollo mission vehicles, which ventured just 4.7 miles from the landers.

One goal for the new vehicle is to allow for exploration of the moon’s dark, rugged south pole, and other areas humans have not gone before, GM and Lockheed said.

GM and Lockheed said their vehicle would be designed to provide “commercial payload services” and prepare for human landings.

The feds have a clear message for cryptocurrency users: A crackdown is coming. 

Federal Reserve vice chair of supervision Randal Quarles told the Senate Banking Committee on Tuesday that the agency is in a “sprint” alongside other US financial regulators to tighten supervision of cryptocurrencies like bitcoin and ethereum, according to Reuters. 

“We along with the OCC and the FDIC are engaged right now in what we are calling a sprint in seeking to pull together views on exactly that,” Quarles said. 

While the vice chair did not provide details on the Fed’s plan, he said the matter was “high priority.” 

The comments come just days after Fed Chairman Jerome Powell told lawmakers that cryptocurrencies, which have fluctuated wildly in value in recent months, pose risks to the stability of the global financial system. 

Fed Chairman Jerome PowellREUTERS

Bitcoin has traded below $32,000 this month after reaching a high of more than $60,000 in April. It was trading for around $39,000 Wednesday morning. Other cryptocurrencies like DogeCoin and SafeMoon have experienced even greater price swings. 

In addition to crypto’s volatility posing risk to individual investors, cryptocurrency critics say the assets’ decentralized and hard-to-trace nature can help groups like terrorists and drug traffickers more easily transfer money.

In response to such concerns, the Treasury said last week it will start requiring any cryptocurrency transfers worth $10,000 or more to be reported to the Internal Revenue Service. 

“I think many are used, at least in a transactions sense, mainly for illicit financing,” Treasury Secretary Janet Yellen said in January. 

Bitcoin has had a bumpy ride in recent sessions amid reports of tighter scrutiny coming from regulators in the US and China.Coindesk

And in May, Securities and Exchange Commission Chairman Gary Gensler said the crypto market “could benefit from greater investor protection,” calling on Congress to consider a “regulatory framework.” 

Tesla said it is dropping radar systems in its lower-priced electric cars in favor of cameras and other AI equipment — even as the company faces growing scrutiny over its “autonomous driving” features. 

Starting in May, Model 3 and Model Y Teslas sold in North America will no longer feature radar, which until now has been an important component of the vehicles’ “self-driving” and “autopilot” features, the company revealed Tuesday.

“These will be the first Tesla vehicles to rely on camera vision and neural net processing to deliver Autopilot, Full-Self Driving and certain active safety features,” the company said on its website. 

New, radar-less Tesla vehicles may temporarily have at least three features disabled “for a short period during this transition,” according to the company. 

Tesla is dropping radar to power its “Autopilot” and other “self-driving” features in its Model 3 and Model Y cars.Nicolas Asfouri/AFP/Getty Images

The automatic steering feature may be limited to a maximum speed of 75 miles per hour and will require a longer distance between vehicles. “Smart Summon,” which retrieves vehicles from parking lots without requiring drivers to be behind the wheel, may also be disabled — as may a feature that prevents cars from swerving out of lanes in emergencies.

CEO Elon Musk first hinted at the change on Twitter in March when he said the company was “going with pure vision — not even using radar.” 

The switch-up comes as Tesla faces heat from regulators over its autonomous driving features, which allow cars to stop at traffic lights, switch lanes and exit highways as long as drivers remain awake and alert at the wheel. The California Department of Motor Vehicles is currently reviewing whether such claims mislead consumers under the state’s laws. 

Elon MuskChristophe Gateau/AP

Several recent fatal crashes may be linked to autopilot, investigators say. The California Highway Patrol is probing whether Tesla’s autopilot mode was a “contributing factor” in a fatal crash earlier this month, after a Tesla owner who was killed east of Los Angeles posted videos of himself driving without his hands on the wheel. Federal regulators are also investigating a separate, potentially autopilot-linked crash that occurred outside San Francisco in March.  

It’s unclear how Tesla eliminating radar from its vehicles may impact regulators’ views of the company. Tesla did not immediately reply to a request for comment. 

Officials in San Jose, California, have approved Google’s plans to build a massive, multi-billion dollar campus in the heart of the city.

The tech giant will develop 80 acres of land on the western edge of downtown San Jose, which will undergo an estimated $1 billion in infrastructure improvements.

Google will own all of the land, but most of the project will be allocated for residential and public space.

That includes 15 acres of parks, plazas, and green spaces, new walking and biking paths, storefronts and more, city council staff said.

The development, which will house Google’s first mixed-use campus, will also include up to 7.3 million square feet of office space for 20,000 workers and the construction of 1,000 affordable housing units, at least a quarter of all residential space in the development, according to the plan.

A sketch view of the Meander, an urban promenade full of life and activity that is closed to cars.SITELAB Urban Studio

A sketch view of the Creekside Walk along South Autumn Street: approximately 1.51 acres of open space that offers a variety of experiences inspired and framed by Los Gatos Creek.SITELAB Urban Studio

Construction is expected to take between 10 and 30 years.

The San Jose city council unanimously approved the plans Tuesday evening.

“I want to thank everyone at Google for seeing this possibility,” Mayor Sam Liccardo said during the meeting. “Google has done far more than follow the rules, they’ve made massive commitment to our community.”

[embedded content]

City officials said the plan includes steps to preserve and create more affordable housing and other opportunities such as scholarships and career training for residents in order to prevent gentrification of the area. As part of the agreement with San Jose, the tech titan is creating a $154.8 million community fund to that effect.

The mixed-use development is Google’s answer to community backlash against isolated tech headquarters that critics say have alienated locals and driven up the cost of living in Silicon Valley and other tech-heavy towns. 

The campus will include 7.3 million square feet of office space for 20,000 workers.SITELAB Urban Studio

Google’s campus will be an integration of offices and residential spaces.SITELAB Urban Studio

An artist’s rendering of Google’s proposed megaproject in San Jose, California.SITELAB Urban Studio

“This is about the long haul,” Alexa Arena, Google’s San Jose development director, said during Tuesday night’s meeting where the plan won approval. “We are not a developer who is just coming in for five years, but we’re really thinking about how we can become an integrated part of the neighborhood.”