Nationwide US pharmacist walk-out looms | eBay faces $2B in fines over rolling coal devices | Video game workers allege union busting

In today's Portfolio Intelligence Daily, where we highlight under the radar investment themes and idiosyncratic company risks:

• Nationwide US pharmacist walk-out looms
• eBay faces $2B in fines over rolling coal devices
• Video game workers accuse Keywords Studios of union busting?

Auquan’s analyst team curates these summaries from our intelligence engine, which uses retrieval augmented generation (RAG AI) to uncover unique insights at scale, typically involving emerging markets, supply chains, financially-material ESG risks, and the impact of regulatory changes.

Nationwide US pharmacist walk-out looms

Walgreens pharmacy staff are currently organizing a nationwide walkout and planning multiple rallies at the end of October to express their dissatisfaction with the existing working conditions.

• Pharmacy staff at certain Walgreens stores in Arizona, Washington, Massachusetts, and Oregon locked their gates and walked out last week due to challenging working conditions that jeopardize the safe filling of prescriptions. CNN has verified pharmacy closures at Walgreens locations.?
• Some CVS employees are considering joining potential plans for nationwide walkouts, a result of growing discontent among retail pharmacy staff.?
• An organizer believes that these walkouts are the next step in improving working conditions for pharmacists, pharmacy technicians, and support staff in multiple retail pharmacy chains.
• There is a growing discontent among retail pharmacy staff. They have been complaining for years about understaffed teams and increasing work expectations imposed by corporate management. The Covid pandemic worsened these issues. New duties like testing and vaccination stretched pharmacists and technicians even thinner.

Select timeline

• October 13, 2023 | Pharmacy staff from Walgreens, other chains could stage nationwide walkout and rallies in coming weeks (CNBC)
• October 9, 2023 | Walgreens walkout: 5 things you need to know (CNN)
• October 9, 2023 |? |‘Pharmageddon’: Walgreens walkout this week could make your prescriptions hard to get (Fast Company)

eBay faces $2B in fines over rolling coal devices

eBay may face significant fines in the billions for selling devices that enable pickup trucks to emit large gas clouds.?

• The Department of Justice has filed a lawsuit against the online retailer, claiming that eBay allowed the sale of over 343,000 "defeat devices” designed to disable vehicle emission controls, which violates the Clean Air Act as stated by the DOJ.
• According to the DOJ, eBay is now subject to a $5,580 fine for each of the 343,000 transactions that occurred between November 2015 and January 2023.
• Rolling coal is when a truck engine is revved to release a dense cloud of gas from the tailpipe.

"Aftermarket defeat devices significantly increase pollution emissions — including carbon monoxide, nitrogen oxides, particulate matter, and nonmethane hydrocarbons — that harm public health and impede efforts by the EPA, states, Tribes, and local agencies to plan for and attain air quality standards." — DOJ statement (source)

Select timeline

• October 16, 2023 | eBay faces fines of up to $2 billion for unlawfully selling 'rolling coal' devices (Chemistry World)
• October 15, 2023 | eBay could face $2 billion in fines after feds sue over the sale of 'rolling coal' devices (Insider)
• October 12, 2023 | Ebay faces $2 billion fine for 'rolling coal' sales (The Independent UK)

Video game workers accuse Keywords Studios of union busting?

Video game workers represented by Local 401 of the United Food and Commercial Workers in Alberta, Canada are alleging union busting by Keywords Studios, an Irish video game company.?

• The workers unanimously voted to join UFCW, making them the first unionized workers in the videogame industry.
• The workers decided to unionize due to a variety of issues, including low wages, lack of benefits such as sick pay, and concerns regarding health and safety.?
• Keyword Studios had contracted these workers to provide quality assurance and testing services for BioWare, which unexpectedly terminated the contract, and Keyword Studios laid them off.
• UFCW accuses Keywords Studios of insincere negotiating, specifically "surface bargaining", which involves going through the motions without any intention of reaching a serious contract. The union also claims that Keywords Studios discriminated, intimidated, and treated some workers unfairly for their union affiliation.

Select timeline

• October 13, 2023 | Video game testers accuse employer of unionbusting (Alberta Worker)
• October 10, 2023 |? Keywords Studios lays off 13 unionized QA testers working on BioWare games (Game World Observer)
• October 5, 2023 | Keywords lays off unionized devs after concluding BioWare contract (Game Developer)

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