Labor Day 2025: Reflecting on a Year of Labor Challenges and Progress

This Labor Day, we take a moment to celebrate the contributions of workers worldwide and reflect on the critical labor issues and milestones that have shaped the past year. From corporate controversies to strides in workplace wellbeing, 2024–2025 underscored the ongoing importance of protecting fair, dignified work across industries.

Key Trends Shaping Labor Risks

Data from the past year shows that labor-related risks remain a significant and rising concern within the broader landscape of social risks affecting businesses and the global workforce.

• • • Working conditions overwhelmingly dominate the labor risk landscape, reflecting widespread worker actions, negotiations, and demands for higher standards.
    • Workplace diversity and inclusion continues to be a significant area of focus, as organizations navigate evolving expectations around equity, representation, and belonging.
    • Although smaller in proportion, forced labor and child labor risks remain critical concerns, attracting heightened regulatory scrutiny and public attention.

Real-world examples from the past year illustrate how companies have confronted—and, in some cases, exacerbated—these challenges.

Labor Controversies: A Year of Struggle and Advocacy

Several major companies faced notable labor controversies over the past year, revealing systemic issues and prompting calls for change:

• • • Starbucks Corp weathered a turbulent year, battling union disputes and a lawsuit alleging the company sourced coffee from a Brazilian supplier linked to slave-like working conditions. Domestically, tensions escalated with Starbucks Workers United amid widespread strikes across nine states, unlawful store closures, and stalled contract negotiations. Meanwhile, the company announced over 1,000 corporate layoffs as part of broader restructuring efforts.
    • Volkswagen AG grappled with deep unrest, both at home and abroad. Mass strikes erupted over layoffs and wage cuts in Germany following the company’s decision to scrap its historic no-layoffs policy. Internationally, Volkswagen’s sale of its Xinjiang plant, under scrutiny for alleged human rights violations, highlighted the persistent pressure to address ethical concerns in global supply chains.
      
    • Glovo faced intensifying scrutiny in Europe. Labor inspections and court rulings in Spain and Italy found the company had misclassified thousands of workers, evaded Social Security contributions, and skirted labor laws through subcontracting. Substantial fines, criminal complaints, and penalties for illegal worker surveillance have kept Glovo in the labor rights spotlight.
      

Other companies also faced investigations over child and forced labor violations. To mention a few, HelloFresh faced an investigation in the U.S. regarding allegations of migrant child labor at its Illinois facility, which has led to lawsuits from shareholders. Similarly, JBS USA reached a $4 million settlement related to child labor violations identified in its meatpacking plants. Additionally, Temu, managed by PDD Holdings, is being investigated in both the U.S. and Europe for purported connections to forced labor in China, highlighting ethical issues in global e-commerce supply chains.

Positive Highlights: Advancing Workplace Excellence

Despite these challenges, 2024–2025 also featured companies making meaningful strides in promoting employee well-being and ethical labor practices.

The steady engagement around Sustainable Development Goal 8—promoting decent work and sustained economic growth—remains a bright spot. While progress is ongoing, consistent attention to this goal underscores its critical role in shaping future business and social outcomes.
Several companies stood out for their positive contributions:

• • • Alight Solutions was recognized by Newsweek as one of America’s Greatest Workplaces for Mental Wellbeing 2025. Initiatives like Mindful Mondays, peer mentoring, and partnerships with organizations such as NAMI-NYC demonstrate Alight’s commitment to fostering a thriving, mentally healthy workforce.
      
    • KnowBe4, a cybersecurity training leader, was named one of the Best Workplaces in Technology for the GCC region. Its culture of transparency, ownership, and continuous professional growth has positioned it as an exemplary employer.
      
      
    • Cushman & Wakefield earned dual accolades: inclusion in the 2025 Global Outsourcing 100 by IAOP and a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index. These honors reflect the firm’s dedication to operational excellence and workplace inclusivity.
      

Looking Ahead: Progress and Persistence

As we mark Labor Day 2025, one truth stands out: while important progress has been made, much work remains. Workers continue to push for safer conditions, fair treatment, and respect across industries, prompting organizations to adapt and evolve.

Happy Labor Day!