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Tag: labor

  • Oil company Phillips 66 says it will shut down Los Angeles-area refinery

    Oil company Phillips 66 says it will shut down Los Angeles-area refinery

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    LOS ANGELES (AP) — Oil company Phillips 66 announced Wednesday that it plans to shut down a Los Angeles-area refinery by the end of 2025, citing market concerns.

    The refinery accounts for about 8% of California’s refining capacity, according to the state’s Energy Commission. The company said it will remain operating in the state.

    “With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” CEO Mark Lashier said in a statement. “Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands.”

    The closure will impact 600 employees and 300 contractors who help operate the refinery, the company said in a news release. The refinery consists of two facilities that were built more than a century ago.

    The announcement comes days after Democratic Gov. Gavin Newsom signed a law aimed at preventing gas prices from spiking at the pump. The law authorizes energy regulators to require refineries to maintain a certain level of fuel on hand. The goal is to avoid sudden increases in gas prices when refineries go offline for maintenance.

    Phillips 66’s decision to close was not related to the new law, the company said. It said it supported the state’s efforts to keep certain levels of fuel on hand to meet consumer needs.

    The company also operates a refinery near San Francisco that accounts for about 5% of California’s refining capacity, according to the state Energy Commission. Phillips 66 Santa Maria, a refinery that was located about 62 miles (100 kilometers) northwest of Santa Barbara, shut down in 2023 after the company announced plans to convert its San Francisco-area site into “one of the world’s largest renewable fuels facilities.”

    Newsom has applied pressure on lawmakers to pass oil and gas regulations. He called the state Legislature into a special session in 2022 to pass legislation aimed at cracking down on oil companies for making too much money. The Democrat often touts California’s status as a climate leader. The state has passed policies in recent years to phase out the the sale of new fossil fuel-powered lawn mowers, cars, big rigs and trains.

    ___

    This story has been corrected to show that the Los Angeles-area refinery accounts for about 8% of California’s refining capacity, not that it produces that amount of the state’s crude oil. It has corrected the same error for the San Francisco-area refinery.

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  • Debate over pay of tipped workers rages as election nears

    Debate over pay of tipped workers rages as election nears

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    BOSTON — A union backed proposal to pay tipped workers the state’s minimum wage goes before voters in November, but critics say its passage would hurt Main Street bars and restaurants and drive up consumer costs.

    Question 5 asks voters in the November election to decide if the state should require bars, restaurants, hotels and other hospitality venues to pay tipped workers the state’s $15 per hour wage floor, in addition to gratuities.

    The plan calls for phasing out the tipped wage for workers over five years, allowing workers to earn up to $15 per hour and keep their tips. It would also allow restaurants to “pool” tips and distribute them equally among all workers, such as cooks, dishwashers and others who don’t interact with customers.

    Supporters of phasing out the tipped-wage law — which includes labor organizations and worker advocacy groups — say it would improve wages for underpaid workers who are struggling to survive with the state’s high cost of living.

    Saru Jayaraman, president of pro-Question 5 group One Fair Wage, said its passage would ensure that tipped workers “finally receive fair wages, giving them the financial stability they need to support themselves and their families.”

    “Since the pandemic, restaurant workers have left the industry in droves. Many of them are tired of barely scraping by on poverty wages and tips that are unpredictable at best,” she said. “It’s time we end the injustice of the subminimum wage and create an industry that truly values and compensates its workers with dignity.”

    But critics, like the Massachusetts Restaurant Association and “No on 5” Committee to Protect Tips, argue the plan would increase costs for bars and restaurants that already operate on narrow margins, and lead to higher prices for consumers.

    “This would put a massive increase on the costs of small businesses at a time when they are still recovering from COVID,” said Chris Keohan, a spokesman for the “No on 5” opposition group. “This would increase the costs of the average restaurant by about $300,000 a year.”

    He said the increased labor costs would push some bars and restaurants out of business or accelerate the shift away from full-service establishments, as employers hire less staff and move to automated operations like McDonald’s and Dunkin’s new self-serve kiosks.

    Municipal leaders representing communities including Newburyport, Methuen, Haverhill and Gardner also oppose the proposal, arguing it would devastate Main Street restaurants that are still recovering from the economic effects of the pandemic.

    Massachusetts law requires workers to be paid at least $15 an hour — under the “grand bargain” package the Legislature brokered to avert a proposal to cut the state’s sales tax and other proposals. But the 2018 law also allows bars and restaurants to pay tipped workers $6.75 per hour.

    The state is home to some 50,000 waiters and waitresses, 20,000 bartenders, and 5,000 manicurists and pedicurists, according to the latest labor data.

    If Question 5 is approved, Massachusetts would be the first state in decades to eliminate its tipped minimum wage, which observers say makes it hard to know how the transition will play out in the post-pandemic economy.

    The closest example is the District of Columbia, which is two years into a five-year phase-out of its tipped wage, the report noted. Some Washington, D.C., restaurants have set-service fees — ranging from 3% to 20% — to offset the higher labor costs. Critics point to data showing some restaurants have closed in the law’s wake.

    A recent report by Tufts University’s Center for State Policy Analysis said restaurants and other tip-dependent businesses will face higher costs from having to cover the full minimum wage, and will likely compensate for that with a mix of price increases, new fees, reduced hiring, and potentially lower profits.

    But phasing out the state’s tipped wage will translate into higher pay for most service employees who currently depend on the extra money, according to the report.

    In June, the state Supreme Judicial Court tossed out a challenge by restaurant groups alleging the proposal violates a requirement in the state Constitution that initiative petitions must contain only ‘related or mutually dependent’ subjects.

    The justices unanimously concluded that Attorney General Andrea Campbell’s office correctly certified the question for the November ballot.

    The Massachusetts Restaurant Association and Committee to Protect Tips filed a complaint with the state Ballot Law Commission alleging that backers of the ballot question submitted “fraudulent” signatures from people who aren’t registered to vote, among other claims.

    But the groups withdrew their objections at the last minute, citing a lack of time to conduct a thorough review and make their arguments before the panel.

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    By Christian M. Wade | Statehouse Reporter

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  • Migrants not taking jobs from Black, Hispanic people, data shows

    Migrants not taking jobs from Black, Hispanic people, data shows

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    WASHINGTON — Republican presidential nominee Donald Trump promises the biggest deportation event the U.S. has ever seen if he is elected — a promise he has predicated, in part, on the notion that immigrants in the U.S. legally and illegally are stealing what he calls “Black jobs” and “Hispanic jobs.”

    But government data show immigrant labor contributes to economic growth and provides promotional opportunities for native-born workers. And a mass deportation event would cost U.S. taxpayers up to a trillion dollars and could cause the cost of living, including food and housing, to skyrocket, economists say.

    Here’s a look at immigration and the U.S. labor market, and what Trump’s plan would mean for the U.S. economy.

    What has Trump said?

    Trump, who often uses anti-immigrant rhetoric, has referred during his campaign to immigrants he says are taking “Black jobs” and “Hispanic jobs.”

    At a recent rally in Reading, Pennsylvania, Trump said, “You have an invasion of people into our country.”

    “They’re going to be attacking — and they already are — Black population jobs, the Hispanic population jobs, and they’re attacking union jobs too,” Trump said. “So when you see the border, it’s not just the crime. Your jobs are being taken away too.”

    Trump’s rhetoric about jobs has been widely condemned by Democrats and Black leaders who have called it a racist and insulting way of implying that Black and Hispanic Americans take menial jobs.

    Janiyah Thomas, the director of Team Trump Black Media, told The Associated Press that Democrats “continue to prioritize the interests of illegal immigrants over our own Black Americans who were born in this country” and that Biden-era job gains in the labor market were primarily due to illegal immigration.

    The latest U.S. Bureau of Labor Statistics Current Population Survey data shows that as of 2023, native-born Black workers are most predominantly employed in management and financial operations, sales and office support roles, while native-born Latino workers are most often employed in management, office support, sales and service occupations.

    Foreign-born, noncitizen Black workers are most often represented in transportation and health care support roles, and foreign-born, noncitizen Hispanic workers are most often represented in construction, building and grounds cleaning.

    How has immigration contributed to U.S. growth?

    In 2023, international migrants — primarily from Latin America — accounted for more than two-thirds of the population growth in the United States, and so far this decade they have made up almost three-quarters of U.S. growth.

    After hitting a record high in December 2023, the number of migrants crossing the border has plummeted.

    The claim that immigrants are taking employment opportunities from native-born Americans is repeated by Trump’s advisers. They often cite a report produced by Steven Camarota, research director for the Center for Immigration Studies, a right-leaning think tank that seeks a reduced immigration flow into the U.S. The report combines job numbers for immigrants in the U.S. legally and illegally to reinforce the claim that foreigners are disproportionately driving U.S. labor growth and reaping most of the benefits.

    Camarota’s report states that 971,000 more U.S.-born Americans were employed in May 2024 compared to May 2019, prior to the pandemic, while the number of employed immigrants has increased by 3.2 million.

    It is true that international migrants have become a primary driver of population growth this decade, increasing their share of the overall population as fewer children are being born in the U.S. compared with years past. That’s according to the U.S. Census Bureau’s annual American Community Survey.

    Are immigrants taking native-born workers’ jobs?

    Economists who study immigrant labor’s impact on the economy say that people who are in the U.S. illegally are not taking native citizens’ jobs, because the roles that these immigrant workers take on are most often positions that native workers are unwilling to fill, such as agriculture and food processing jobs.

    Giovanni Peri, a labor economist at the University of California, Davis, conducted research that explores the impact of the 1980 influx of Cuban immigrants in Miami (the so-called Mariel Boatlift) on Black workers’ employment. The study determined that the wages of Miami’s Black and Hispanic workers moved above those in other cities that did not have a surge of immigrant workers.

    Peri told the AP that the presence of new immigrant labor often improves employment outcomes for native-born workers, who often have different language and skill sets compared to new immigrants.

    In addition, there are not a fixed number of jobs in the U.S., immigrants tend to contribute to the survival of existing firms (opening up new opportunities for native workers) and there are currently more jobs available than there are workers available to take them. U.S. natives have low interest in working in labor-intensive agriculture and food production roles.

    “We have many more vacancies than workers in this type of manual labor, in fact we need many more of them to fill these roles,” Peri said.

    Stan Marek, who employs roughly 1,000 workers at his Houston construction firm, Marek Brothers Holdings LLC, said he has seen this firsthand.

    Asked if immigrants in the U.S. illegally are taking jobs from native-born workers, he said, “Absolutely not, unequivocally.”

    “Many of my workers are retiring, and their kids are not going to come into construction and the trades,” Marek said. He added that the U.S. needs an identification system that addresses national security concerns so those who are in the country illegally can work.

    “There’s not enough blue-collar labor here,” he said.

    Data also shows when there are not enough workers to fill these roles, firms will automate their jobs with machines and technology investments, rather than turn to native workers.

    Dartmouth College economist Ethan Lewis said, “There is a vast amount of research on the labor market impact of immigration in the U.S., most of which concludes the impact on less-skilled workers is fairly small and, if anything, jobs for U.S.-born workers might by created rather than ‘taken’ by immigrants.”

    How would mass deportations affect the economy?

    Trump has said he would focus on rounding up migrants by deploying the National Guard, whose troops can be activated on orders of a governor.

    Peri says a deportation program would cost the U.S. up to a trillion dollars and would result in massive losses to the U.S. economy. The cost of food and other basic items would soar.

    “They are massive contributors to our economy and we wouldn’t have fruits and vegetables, we wouldn’t have our gardens,” he said, if the deportation effort comes to fruition.

    Since the labor force made up of people in the U.S. illegally makes up roughly 4% of U.S. GDP annually, he estimates that mass deportation would result in a roughly $1 trillion loss.

    “It’s a cost that is mind-boggling in terms of income loss, production loss and there will be a logistical cost to organize this,” he said.

    Treasury Secretary Janet Yellen said this month in a podcast interview with David Axelrod that immigrant labor “is an important source of labor force growth.”

    “On balance, it helps the economy grow without actually depriving other people of jobs,” she said. “It’s not in any way a zero-sum game.”

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  • Should California’s minimum wage be $18? Voters will soon decide

    Should California’s minimum wage be $18? Voters will soon decide

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    LOS ANGELES — Voters will decide in November whether California should raise its hourly minimum wage to $18 by 2026 and pay workers what would be the highest statewide minimum wage in the country.

    That would be on par with Hawaii, where workers are on track to get paid at least $18 per hour by 2028 under a law passed two years ago.

    Five states — including Alabama, South Carolina and Tennessee — do not have a minimum wage, though they are subject to the federal hourly minimum wage of $7.25.

    California’s ballot measure, Proposition 32, would raise the state’s current minimum wage of $16 to $17 for the remainder of 2024 for employers with at least 26 employees, increasing to $18 per hour starting in January 2025. Without it, the state’s minimum wage is set to increase to $16.50 per hour next year.

    Small businesses with fewer than 26 employees would be required to start paying employees $17 an hour in January 2025 and $18 per hour in 2026.

    Proponents of the measure say it will help low-wage workers to support their families in one of the most expensive states to live in in the country. Joe Sanberg, a wealthy investor and anti-poverty advocate, said the increase would give a raise of $3,000 a year to more than 2 million Californians who earn minimum wage.

    He called the current situation happening in California “corporate welfare” because minimum-wage workers who work full-time don’t make enough to survive without government help.

    “If someone who’s working full-time needs food stamps, doesn’t that mean that we as taxpayers are subsidizing the difference between what their employer should be paying them so that they could afford food and what they actually are paying them?” Sanberg said.

    Opponents of the California measure say it would be hard for businesses to implement, particularly small employers with thin profit margins. They argue the cost would be passed onto consumers and could lead to job cuts.

    “This increase, and the significance of how quickly it’s going to increase will really have a huge impact on them and their ability to maintain their business operations,” said Jennifer Barrera, president of the California Chamber of Commerce.

    Nearly 40 California cities — including San Francisco, Berkeley, and Emeryville in Northern California — already have local minimum wages higher than the state’s. Since July, workers in Los Angeles have been paid an hourly minimum of $17.28.

    West Hollywood has an hourly minimum wage of $19.08, but business owners there aren’t happy either. A survey of 142 businesses commissioned by the city council found 42% of them said they had to lay off employees or reduce their hours because of the ordinance.

    Fast food workers across the state received a bump to $20 an hour in April under a law signed by Gov. Gavin Newsom. The Democrat also approved legislation gradually raising wages for health care workers to $25 an hour by July 2026.

    Fast food prices increased 3.7% after the law took effect while employment stayed relatively stable, according to a working paper from the University of California, Berkeley. But franchises in Southern California reported having to cut hours for workers as a result of the wage increase.

    University of Pennsylvania professor Ioana Marinescu, who studies the labor market and wage determination, said increasing the minimum wage has not shown to have any net effect on the overall employment rate.

    “There’s some positive, some negative, but on average the effect on employment is close to zero and that’s quite consistent across many studies,” Marinescu said.

    Another common argument against raising the minimum wage is that those low-paying jobs are often filled by students or younger workers used as stepping stones to higher paying jobs.

    But a report from the California Legislative Analyst’s Office found roughly half of low-wage workers were over the age of 35 and more than a quarter were over 50. The state’s largest low-wage occupation is home health and personal care aides and more than half of low-wage workers are Latino.

    Small businesses already have been grappling with inflation impacting their bottom line, said Juliette Kunin, who owns a gift store in Sacramento called Garden of Enchantment. The business employs about six workers.

    “I don’t want to see anybody not being able to support themselves and working full time,” said Kunin, who has mixed feelings about the measure. “But, yeah, if it doesn’t pencil out for us, then we aren’t going to be able to survive.”

    Workers picketed outside the Sheraton Grand Sacramento Hotel this week to demand higher pay and better benefits. Across the U.S. this year, thousands of hotel workers have gone on strike to fight for fair pay and workloads in the wake of COVID-era cuts.

    Christian Medina makes $16 an hour in addition to tips as a banquet captain at the Sheraton Grand. He supports the proposition and hopes it helps workers better provide for their families.

    “It’s hard getting paid $16 an hour,” he said. “I want to be able to save money for my daughter so she can go to school, go to a good college.”

    Some say that even if the measure passes, it wouldn’t go far enough.

    Carmen Riestra, a uniform attendant at the hotel who makes $19 an hour, said an $18 minimum wage would still not be enough to afford living in Sacramento.

    Riestra loves her job and has worked at the Sheraton Grand for 11 years, but the employees’ workloads have increased in recent years due to job cuts, she said.

    “And the payment’s only $19?” she said. “That’s not fair.”

    ___

    Austin reported from Sacramento, Calif. She is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on Twitter: @ sophieadanna

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  • NLRB accuses Apple of illegally restricting employee Slack and social media use

    NLRB accuses Apple of illegally restricting employee Slack and social media use

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    The National Labor Relations Board has accused Apple of infringing on its employees’ rights to advocate for better working conditions. In a complaint spotted by Reuters, the agency alleges Apple illegally fired an employee who had used Slack to advocate for workplace changes at the company. Separately, the NLRB accuses Apple of forcing another worker to delete a social media post.

    The case stems from a 2021 complaint filed by #AppleToo co-organizer Janneke Parrish. In October of that year, Apple fired Parrish for allegedly sharing confidential information, a claim she denies. Per the complaint, Parrish used Slack and public social media posts to advocate for permanent remote work.

    She also shared open letters critical of the tech giant, distributed a pay equity survey, and recounted instances of sexual and racial discrimination at Apple. According to the labor board, Apple’s policies bars employees from creating Slack channels without first obtaining permission from a manager. Instead, workers must direct their workplace concerns to either management or a “People Support” group the company maintains. An example of the type of concerns some employees used Slack to voice can be seen in a 2021 tweet from former Apple employee Ashley Gjøvik.

    “We look forward to holding Apple accountable at trial for implementing facially unlawful rules and terminating employees for engaging in the core protected activity of calling out gender discrimination and other civil rights violations that permeated the workplace,” Parrish’s lawyer, Laurie Burgess, told Reuters.

    Apple disputes Parrish’s claims. “We are and have always been deeply committed to creating and maintaining a positive and inclusive workplace. We take all concerns seriously and we thoroughly investigate whenever a concern is raised and, out of respect for the privacy of any individuals involved, we do not discuss specific employee matters,” an Apple spokesperson told Engadget. “We strongly disagree with these claims and will continue to share the facts at the hearing.”

    Provided Apple does not settle with the agency, an initial hearing is scheduled for February with an administrative judge. The NLRB is looking to force the company to change its policy and reimburse Parrish for the financial hardships she suffered due to her firing. Last week, the NLRB accused Apple of forcing employees to sign illegal and overly broad confidentially, non-disclosure and non-compete agreements.

    Update 7:09PM ET: Added comment from Apple.

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    Igor Bonifacic

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  • Question 5: Should tipped workers be paid minimum wage?

    Question 5: Should tipped workers be paid minimum wage?

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    BOSTON — A union-backed proposal to pay tipped workers the state’s minimum wage goes before voters in November, but critics say its passage would hurt Main Street bars and restaurants and drive up consumer costs.

    Question 5 asks voters to decide if the state should require bars, restaurants, hotels and other hospitality venues to pay tipped workers the state’s wage floor of $15 per hour, in addition to gratuities.

    The plan calls for phasing out the tipped wage for workers over five years, allowing workers to earn up to $15 per hour and keep their tips. It would also allow restaurants to “pool” tips and distribute them equally among all workers, such as cooks, dishwashers and others who don’t interact with customers.

    Supporters of phasing out the tipped-wage law — which includes labor organizations and worker advocacy groups — say it would improve wages for underpaid workers who are struggling to survive with the state’s high cost of living.

    Saru Jayaraman, president of pro-Question 5 group One Fair Wage, said its passage would ensure that tipped workers “finally receive fair wages, giving them the financial stability they need to support themselves and their families.”

    “Since the pandemic, restaurant workers have left the industry in droves. Many of them are tired of barely scraping by on poverty wages and tips that are unpredictable at best,” Jayaraman said. “It’s time we end the injustice of the subminimum wage and create an industry that truly values and compensates its workers with dignity.”

    But critics, like the Massachusetts Restaurant Association and “No on 5” Committee to Protect Tips, argue the plan would increase costs for bars and restaurants that already operate on narrow margins, and lead to higher prices for consumers.

    “This would put a massive increase on the costs of small businesses at a time when they are still recovering from COVID,” said Chris Keohan, a spokesman for the “No on 5” opposition group. “This would increase the costs of the average restaurant by about $300,000 a year.”

    He said the increased labor costs would push some bars and restaurants out of business or accelerate the shift away from full-service establishments, as employers hire less staff and move to automated operations like McDonald’s and Dunkin’s new self-serve kiosks.

    Municipal leaders representing communities including Newburyport, Methuen, Haverhill and Gardner also oppose the proposal, arguing it would devastate Main Street restaurants that are still recovering from the economic effects of the pandemic.

    Massachusetts law requires workers to be paid at least $15 an hour — under the “grand bargain” package the Legislature brokered to avert a proposal to cut the state’s sales tax and other proposals. But the 2018 law also allows bars and restaurants to pay tipped workers $6.75 per hour.

    The state is home to some 50,000 waiters and waitresses, 20,000 bartenders, and 5,000 manicurists and pedicurists, according to the latest labor data.

    If Question 5 is approved, Massachusetts would be the first state in decades to eliminate its tipped minimum wage, which observers say makes it hard to know how the transition will play out in the post-pandemic economy.

    The closest example is the District of Columbia, which is two years into a five-year phase-out of its tipped wage, the report noted. Some Washington, D.C., restaurants have set-service fees — ranging from 3% to 20% — to offset the higher labor costs. Critics point to data showing some restaurants have closed in the law’s wake.

    A recent report by Tufts University’s Center for State Policy Analysis said restaurants and other tip-dependent businesses will face higher costs from having to cover the full minimum wage, and will likely compensate for that with a mix of price increases, new fees, reduced hiring, and potentially lower profits.

    But phasing out the state’s tipped wage will translate into higher pay for most service employees who currently depend on the extra money, according to the report.

    In June, the state Supreme Judicial Court tossed out a challenge by restaurant groups alleging the proposal violates a requirement in the state Constitution that initiative petitions must contain only ‘related or mutually dependent’ subjects.

    The justices unanimously concluded that Attorney General Andrea Campbell’s office correctly certified the question for the November ballot.

    The Massachusetts Restaurant Association and Committee to Protect Tips filed a complaint with the state Ballot Law Commission alleging that backers of the ballot question submitted “fraudulent” signatures from people who aren’t registered to vote, among other claims.

    But the groups withdrew their objections at the last minute, citing a lack of time to conduct a thorough review and make their arguments before the panel.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • US filings for jobless benefits jump to 258,000, the most in more than a year

    US filings for jobless benefits jump to 258,000, the most in more than a year

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    The number of Americans filing for unemployment benefits last week jumped to its highest level in a year, which analysts are saying is more likely a result of Hurricane Helene — and the Boeing machinist strike — than a broader softening in the labor market.

    The Labor Department reported Thursday that applications for jobless claims jumped by by 33,000 to 258,000 for the week of Oct. 3. That’s the most since Aug. 5, 2023 and well above the 229,000 analysts were expecting.

    Analysts highlighted big jumps in jobless benefit applications last week across states that were most affected by Hurricane Helene, including Florida, North Carolina, South Carolina and Tennessee.

    “Claims will likely continue to be elevated in states affected by Helene and Hurricane Milton as well as the Boeing strike until it is resolved,” said Nancy Vanden Houten, lead U.S. economist of Oxford Economics. “We think, though, that the Fed will view these impacts as temporary and still expect it to lower rates by (25 basis points) at the November meeting.”

    Venden Houten said that Washington state was the most impacted by the Boeing strike and accounted for a disproportionate share of the increase.

    Applications for jobless benefits are widely considered representative of U.S. layoffs in a given week, however they can be volatile and prone to revision.

    The four-week average of claims, which evens out some of that weekly volatility, rose by 6,750 to 231,000.

    The total number of Americans collecting jobless benefits rose by 42,000 to about 1.86 million for the week of Sept. 28, the most since late July.

    Outside of the weather and labor strife, some recent labor market data has suggested that high interest rates may finally be taking a toll on the labor market.

    In response to weakening employment data and receding consumer prices, the Federal Reserve last month cut its benchmark interest rate by a half of a percentage point as the central bank shifts its focus from taming inflation toward supporting the job market. The Fed’s goal is to achieve a rare “soft landing,” whereby it brings down inflation without causing a recession.

    It was the Fed’s first rate cut in four years after a series of rate hikes in 2022 and 2023 pushed the federal funds rate to a two-decade high of 5.3%.

    Inflation has retreated steadily, approaching the Fed’s 2% target and leading Chair Jerome Powell to declare recently that it was largely under control.

    In a separate report Thursday, the government reported that U.S. inflation reached its lowest point since February 2021.

    During the first four months of 2024, applications for jobless benefits averaged just 213,000 a week before rising in May. They hit 250,000 in late July, supporting the notion that high interest rates were finally cooling a red-hot U.S. job market.

    In August, the Labor Department reported that the U.S. economy added 818,000 fewer jobs from April 2023 through March this year than were originally reported. The revised total was also considered evidence that the job market has been slowing steadily, compelling the Fed to start cutting interest rates.

    Despite some signs of labor market slowing, America’s employers added a surprisingly strong 254,000 jobs in September, easing some concerns about a weakening job market and suggesting that the pace of hiring is still solid enough to support a growing economy.

    Last month’s gain was far more than economists had expected, and it was up sharply from the 159,000 jobs that were added in August. After rising for most of 2024, the unemployment rate dropped for a second straight month, from 4.2% in August to 4.1% in September.

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  • Africans recruited to work in Russia say they were duped into building drones for use in Ukraine

    Africans recruited to work in Russia say they were duped into building drones for use in Ukraine

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    The social media ads promised the young African women a free plane ticket, money and a faraway adventure in Europe. Just complete a computer game and a 100-word Russian vocabulary test.

    But instead of a work-study program in fields like hospitality and catering, some of them learned only after arriving on the steppes of Russia’s Tatarstan region that they would be toiling in a factory to make weapons of war, assembling thousands of Iranian-designed attack drones to be launched into Ukraine.

    In interviews with The Associated Press, some of the women complained of long hours under constant surveillance, of broken promises about wages and areas of study, and of working with caustic chemicals that left their skin pockmarked and itching.

    To fill an urgent labor shortage in wartime Russia, the Kremlin has been recruiting women aged 18-22 from places like Uganda, Rwanda, Kenya, South Sudan, Sierra Leone and Nigeria, as well as the South Asian country of Sri Lanka. The drive is expanding to elsewhere in Asia as well as Latin America.

    That has put some of Moscow’s key weapons production in the inexperienced hands of about 200 African women who are working alongside Russian vocational students as young as 16 in the plant in Tatarstan’s Alabuga Special Economic Zone, about 1,000 kilometers (600 miles) east of Moscow, according to an AP investigation of the industrial complex.

    “I don’t really know how to make drones,” said one African woman who had abandoned a job at home and took the Russian offer.

    The AP analyzed satellite images of the complex and its internal documents, spoke to a half-dozen African women who ended up there, and tracked down hundreds of videos in the online recruiting program dubbed “Alabuga Start” to piece together life at the plant.

    The woman who agreed to work in Russia excitedly documented her journey, taking selfies at the airport and shooting video of her airline meal and of the in-flight map, focusing on the word “Europe” and pointing to it with her long, manicured nails.

    When she arrived in Alabuga, however, she soon learned what she would be doing and realized it was “a trap.”

    “The company is all about making drones. Nothing else,” said the woman, who assembled airframes. “I regret and I curse the day I started making all those things.”

    One possible clue about what was in store for the applicants was their vocabulary test that included words like “factory” and the verbs “to hook” and “to unhook.”

    The workers were under constant surveillance in their dorms and at work, the hours were long and the pay was less than she expected — details corroborated by three other women interviewed by AP, which is not identifying them by name or nationality out of concern for their safety.

    Factory management apparently tries to discourage the African women from leaving, and although some reportedly have left or found work elsewhere in Russia, AP was unable to verify that independently.

    Russia and Iran signed a $1.7 billion deal in 2022, after President Vladimir Putin invaded neighboring Ukraine, and Moscow began using Iranian imports of the unmanned aerial vehicles, or UAVs, in battle later that year.

    The Alabuga Special Economic Zone was set up in 2006 to attract businesses and investment to Tatarstan. It expanded rapidly after the invasion and parts switched to military production, adding or renovating new buildings, according to satellite images.

    Although some private companies still operate there, the plant is referred to as “Alabuga” in leaked documents that detail contracts between Russia and Iran.

    The Shahed-136 drones were first shipped disassembled to Russia, but production has shifted to Alabuga and possibly another factory. Alabuga now is Russia’s main plant for making the one-way, exploding drones, with plans to produce 6,000 of them a year by 2025, according to the leaked documents and the Washington-based Institute for Science and International Security.

    That target is now ahead of schedule, with Alabuga building 4,500, said David Albright, a former U.N. weapons inspector who works at the institute.

    Finding workers was a problem. With unemployment at record lows and many Russians already working in military industries, fighting in Ukraine or having fled abroad, plant officials turned to using vocational students and cheap foreign labor.

    Alabuga is the only Russian production facility that recruits women from Africa, Asia and South America to make weapons according to experts and the AP investigation.

    About 90% of the foreign women recruited via the Alabuga Start program work on making drones, particularly the parts “that don’t require much skill,” he said.

    Documents leaked last year and verified by Albright and another drone expert detail the workforce growing from just under 900 people in 2023 to plans for over 2,600 in 2025. They show that foreign women largely assemble the drones, use chemicals and paint them.

    In the first half of this year, 182 women were recruited, largely from Central and East African countries, according to a Facebook page promoting the Alabuga Start program. It also recruits in South America and Asia “to help ladies to start their career.”

    Officials held recruiting events in Uganda, and tried to recruit from its orphanages, according to messages on Alabuga’s Telegram channel. Russian officials have also visited more than 26 embassies in Moscow to push the program.

    The campaign gave no reasons why it doesn’t seek older women or men, but some analysts suggest officials could believe young women are easier to control. One of the leaked documents shows the assembly lines are segregated and uses a derogatory term referring to the African workers.

    The factory also draws workers from Alabuga Polytechnic, a nearby vocational boarding school for Russians age 16-18 and Central Asians age 18-22 that bills its graduates as experts in drone production. According to investigative outlets Protokol and Razvorot, some are as young as 15 and have complained of poor working conditions.

    The foreign workers travel by bus from their living quarters to the factory, passing multiple security checkpoints after a license plate scan, while other vehicles are stopped for more stringent checks, according to the woman who assembles drones.

    They share dormitories and kitchens that are “guarded around the clock,” social media posts say. Entry is controlled via facial recognition, and recruits are watched on surveillance cameras. Pets, alcohol and drugs are not allowed.

    The foreigners receive local SIM cards for their phones upon arrival but are forbidden from bringing them into the factory, which is considered a sensitive military site.

    One woman said she could only talk to an AP reporter with her manager’s permission, another said her “messages are monitored,” a third said workers are told not to talk to outsiders about their work, and a fourth said managers encouraged them to inform on co-workers.

    The airframe worker told AP the recruits are taught how to assemble the drones and coat them with a caustic substance with the consistency of yogurt.

    Many workers lack protective gear, she said, adding that the chemicals made her face feel like it was being pricked with tiny needles, and “small holes” appeared on her cheeks, making them itch severely.

    “My God, I could scratch myself! I could never get tired of scratching myself,” she said.

    “A lot of girls are suffering,” she added. A video shared with AP showed another woman wearing an Alabuga uniform with her face similarly affected.

    Although AP could not determine what the chemicals were, drone expert Fabian Hinz of the International Institute for Strategic Studies confirmed that caustic substances are used in their manufacture.

    In addition to dangers from chemicals, the complex itself was hit by a Ukrainian drone in April, injuring at least 12 people. A video it posted on social media showed a Kenyan woman calling the attackers “barbarians” who “wanted to intimidate us.”

    “They did not succeed,” she said.

    Although one woman said she loved working at Alabuga because she was well-paid and enjoyed meeting new people and experiencing a different culture, most interviewed by AP disagreed about the size of the compensation and suggested that life there did not meet their expectations.

    The program initially promised recruits $700 a month, but later social media posts put it at “over $500.”

    The airframe assembly worker said the cost of their accommodation, airfare, medical care and Russian-language classes were deducted from her salary, and she struggled to pay for basics like bus fare with the remainder.

    The African women are “maltreated like donkeys, being slaved,” she said, indicating banking sanctions on Russia made it difficult to send money home. But another factory worker said she was able to send up to $150 a month to her family.

    Four of the women described long shifts of up to 12 hours, with haphazard days off. Still, two of these who said they worked in the kitchen added they were willing to tolerate the pay if they could support their families.

    The wages apparently are affecting morale, according to plant documents, with managers urging that the foreign workers be replaced with Russian-speaking staff because “candidates are refusing the low salary.”

    Russian and Central Asian students at Alabuga Polytechnic are allowed visits home, social media posts suggest. Independent Russian media reported that these vocational students who want to quit the program have been told they must repay tuition costs.

    AP contacted the Russian Foreign Ministry and the offices of Tatarstan Gov. Rustam Minnikhanov and Alabuga Special Economic Zone Director General Timur Shagivaleev for a response to the women’s complaints but received no reply.

    Human rights organizations contacted by AP said they were unaware of what was happening at the factory, although it sounded consistent with other actions by Russia. Human Rights Watch said Russia is actively recruiting foreigners from Africa and India to support its war in Ukraine by promising lucrative jobs without fully explaining the nature of the work.

    Russia’s actions “could potentially fulfill the criteria of trafficking if the recruitment is fraudulent and the purpose is exploitation,” said Ravina Shamdasani, a spokesperson for the U.N. High Commissioner for Human Rights, noting that Moscow is a party to the U.N. Convention Against Transnational Organized Crime.

    The AP contacted governments of 22 countries whose citizens Alabuga said it had recruited for the program. Most didn’t answer or said they would look into it.

    Betty Amongi, Uganda’s Minister for Gender, Labour and Social Development, told AP that her ministry raised concerns with its embassy in Moscow about the Alabuga recruiting effort, particularly over the age of the women, because “female migrant workers are the most vulnerable category.”

    The ministry said it wanted to ensure the women “do not end up in exploitative employment,” and needed to know who would be responsible for the welfare of the Ugandan women while in Russia. Alabuga’s Facebook page said 46 Ugandan women were at the complex, although Amongi had said there were none.

    Bolstered by the foreign recruits, Russia has vastly increased the number of drones it can fire at Ukraine.

    Nearly 4,000 were launched at Ukraine from the start of the war in February 2022 through 2023, Albright’s organization said. In the first seven months of this year, Russia launched nearly twice that.

    Although the Alabuga plant’s production target is ahead of schedule, there are questions about the quality of the drones and whether manufacturing problems due to the unskilled labor force are causing malfunctions. Some experts also point to Russia’s switching to other materials from the original Iranian design as a sign of problems.

    An AP analysis of about 2,000 Shahed attacks documented by Ukraine’s military since July 29 shows that about 95% of the drones hit no discernible target. Instead, they fall into Ukraine’s rivers and fields, stray into NATO-member Latvia and come down in Russia or ally Belarus.

    Before July, about 14% of Shaheds hit their targets in Ukraine, according to data analyzed by Albright’s team.

    The large failure rate could be due to Ukraine’s improved air defenses, although Albright said it also could be because of the low-skilled workforce in which “poor craftsmanship is seeping in,” he said.

    Another factor could be because Russia is using a Shahed variant that doesn’t carry a warhead of 50 kilograms (110 pounds) of explosives. Moscow could be launching these dummy drones to overwhelm air defenses and force Ukraine to waste ammunition, allowing other UAVs to hit targets.

    The Alabuga Start recruiting drive relies on a robust social media campaign of slickly edited videos with upbeat music that show African women visiting Tatarstan’s cultural sites or playing sports.

    The videos show them working — smiling while cleaning floors, wearing hard hats while directing cranes, and donning protective equipment to apply paint or chemicals.

    One video depicts the Polytechnic school students in team-building exercises such as paintball matches, even showing the losing side — labeled as “fascists” — digging trenches or being shot with the recreational weapons at close range.

    “We are taught patriotism. This unites us. We are ready to repel any provocation,” one student says.

    The videos on Alabuga’s social media pages don’t mention the plant’s role at the heart of Russian drone production, but the Special Economic Zone is more open with Russian media.

    Konstantin Spiridonov, deputy director of a company that made drones for civilian use before the war, gave a video tour of an Alabuga assembly line in March to a Russian blogger. Pointing out young African women, he did not explicitly link the drones to the war but noted their production is now “very relevant” for Russia.

    Alabuga Start’s social media pages are filled with comments from Africans begging for work and saying they applied but have yet to receive an answer.

    The program was promoted by education ministries in Uganda and Ethiopia, as well as in African media that portrays it as a way to make money and learn new skills.

    Initially advertised as a work-study program, Alabuga Start in recent months is more direct about what it offers foreigners, insisting on newer posts that “is NOT an educational programme,” although one of them still shows young women in plaid school uniforms.

    When Sierra Leone Ambassador Mohamed Yongawo visited in May and met with five participants from his country, he appeared to believe it was a study program.

    “It would be great if we had 30 students from Sierra Leone studying at Alabuga,” he said afterward.

    Last month, the Alabuga Start social media site said it was “excited to announce that our audience has grown significantly!”

    That could be due to its hiring of influencers, including Bassie, a South African with almost 800,000 TikTok and Instagram followers. She did not respond to an AP request for comment.

    The program, she said, was an easy way to make money, encouraging followers to share her post with job-seeking friends so they could contact Alabuga.

    “Where they lack in labor,” she said, “that’s where you come in.”

    ___

    Associated Press writers Michael Biesecker in Washington and Jamey Keaten in Geneva contributed to this report.

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  • Question 3: Should ride-hailing drivers be allowed to unionize?

    Question 3: Should ride-hailing drivers be allowed to unionize?

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    BOSTON — Voters in November will get a chance to resolve a fight over unionizing Uber and Lyft workers with a proposal that calls for reshaping the employment status of ride-hailing drivers who work now as independent contractors.

    Question 3, which appears on the Nov. 5 ballot, would authorize ride-hailing drivers to form unions to collectively bargain with so-called transportation network companies for better wages, benefits, and improved terms and conditions of work.

    A yes vote would create an exemption to the state’s collective bargaining laws and set up a system allowing drivers unionize. A no vote would keep the status quo, where ride-hailing drivers are considered independent contractors with a limited wage and benefit guarantees.

    Backers of the measure say while pay and benefits for the job have increased under a settlement in June with the Attorney General’s Office – including a guaranteed $32.50 minimum wage and other new driver benefits, such as earned sick pay – they want the security of unionization.

    “We help our neighbors get to work and school and bring them home to their families, and we deserve the pay and treatment on the job that will let us support our families and keep a roof over our heads,” Betania Gonell, an Uber and Lyft driver from North Andover, said at a rally at the Statehouse last month.

    “We want a union to help us negotiate for better pay, working conditions and job protections, just like nurses, bus drivers and millions of other workers in Massachusetts.”

    Over the past year, supporters of the measure collected tens of thousands of signatures to put the question before voters in November and survived a legal challenge seeking to strike it from the ballot.

    Among those backing the changes are the Service Employees International Union Local 32BJ and International Association of Machinists, which formed a coalition with progressive and social justice groups earlier this year to push for its approval.

    The outcome of the ballot question could have far-reaching impacts. Massachusetts has seen the number of ride-hailing trips rise from 39.7 million in 2021 to 60.6 million in 2022 – a more than 52% increase, according to state data. There are more than 200,000 approved ride-hailing drivers in the state, but it is not clear if all of them are now working.

    Like most states, Massachusetts has wrestled for years with the issue of how to classify ride hailing drivers. Uber, Lyft and other companies have long argued that their drivers prefer the flexibility of working as independent contractors, not employees. They have cited surveys of drivers saying they prefer contractual work.

    In June, Uber and Lyft dropped plans for a separate ballot question to classify their drivers’ employment status after reaching a deal with the state Attorney General’s Office to boost wages and benefits. The companies also agreed to pay $175 million to the state to resolve the AG’s allegations that they violated the state’s wage and hour laws.

    The agreement requires the companies to pay drivers a minimum wage of $32.50 per hour. Drivers also receive expanded benefits, including paid sick leave and a stipend to buy into the Massachusetts paid family and medical leave program.

    The settlement stems from a lawsuit originally filed in July 2020 by then-Attorney General Maura Healey, who is now the state’s governor.

    But drivers who support Question 3 argue that the proposal would provide more job security and the ability to bargain collectively for better pay and benefits in the future.

    While there is no organized opposition to Question 3, critics argue the move could lead to higher prices for Uber and Lyft rides if the companies pass along the added labor costs to consumers.

    That includes the state’s Republican Party, which says approval of the referendum “threatens the flexibility and affordability” that make ride-hailing services so popular for drivers and those who use the services.

    “It would also set an unfairly low threshold for unionization votes, potentially violating federal labor laws,” MassGOP Chairwoman Amy Carnevale said in a recent statement. “With Massachusetts already being one of the most expensive states to live and do business in, adding more red tape and higher costs is the wrong approach.”

    The conservative Massachusetts Fiscal Alliance, which also opposes Question 3, argues that its approval would not improve the situation for most ride-haling drivers because they will “have no control over leadership of the union and will pay significant dues without real representation.”

    Recent polls have shown a slim majority of voters support approval of Question 3, one of five questions before voters in the November elections.

    A report by Tufts University’s Center for State Policy Analysis found that Question 3, if approved, will likely face significant legal challenges, but it could give workers new power to bargain for better wages and benefits.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Top US trade official sees progress in helping workers. Voters will decide if her approach continues

    Top US trade official sees progress in helping workers. Voters will decide if her approach continues

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    WASHINGTON (AP) — As the U.S. trade representative, Katherine Tai is legally required to avoid discussing the presidential election. But her ideas about fair trade are on the ballot in November.

    Voters are essentially being asked to decide whether it is best to work with the rest of the world or threaten it. Do they favor pursuing worker protections in trade talks, as Tai has done on behalf of the Biden-Harris administration? Or should the United States jack up taxes on almost everything it imports as Donald Trump has pledged to do?

    After nearly four years in her job, Tai feels she is making progress on getting the U.S. and its trade partners to focus more on workers’ rights. Decades of trade deals often prioritized keeping costs low by finding cheap labor that could, in some cases, be exploited.

    “You can’t do trade policy by yourself,” Tai said in an interview with The Associated Press. “I am confident that the path that we are on is the right path to be on. I think the only question is how much progress we are able to make in these next years.”

    It is an approach that has drawn criticism from business leaders, economists and Republicans who say that the U.S. has not made enough progress on new trade partnerships and countering China’s rise.

    “There have been no trade deals, no talks to expand free trade agreements,” Rep. Carol Miller, R-W.Va., said in an April congressional hearing with Tai. “Compared to China’s ambitious agenda, the United States is falling behind in every region in the world.”

    Trump says that broad tariffs of at least 20% on all imports -– and possibly even higher on some products from China and Mexico -– would bring back American factory jobs. Most economists say they would hurt economic growth and raise inflation, though the former president has dismissed those concerns.

    “If you’re a foreign country and you don’t make your product here, then you will have to pay a tariff, a fairly substantial one, which will go into our treasury, will reduce taxes,” Trump, the Republican presidential nominee this year, said at a recent rally in Erie, Pennsylvania.

    An Ivy League background and a blue-collar perspective

    Tai has degrees from Yale University and Harvard Law School, but strives for a blue-collar perspective on trade. She said that she has injected once-excluded labor union voices into the trade process.

    The Biden-Harris administration has not rejected tariffs. It kept the ones on China from Trump’s presidency. It has imposed a 100% tariff on Chinese electric vehicles, even though there is not much of a U.S. market for these vehicles that can cost, without tariffs, as little as $12,000. Tai sees that as a way to shield an emerging industry against subsidized and unfair competition.

    But the administration also is looking to bolster U.S. workers in the face of competition from China through other industrial policies, such as funding for computer chip factories and tax breaks for technology in renewable energy sources.

    The reality, according to some economists, is that domestic factories did not simply lose jobs to China. There were productivity gains that meant some manufacturers needed fewer employers and there was a broader shift as more workers moved away from manufacturing and into the services sector. Those factors often get less emphasis from Tai, said Mary Lovely, a senior fellow at the Peterson Institute for International Economics.

    “It seems to me that she’s focusing on the easy one — the one where you can blame the ’bad guy,’ China,” Lovely said.

    What to know about the 2024 Election

    There is unfinished work.

    The trade pillar of the Indo-Pacific Economic Framework spearheaded by Tai remains incomplete. That effort by Washington and its allies in Asia is meant to counterbalance China’s ascendance without needing a trade deal, but it puts more of a focus on workers’ rights and environmental protections than past proposals.

    “What I have discovered is that we actually all want the same thing,” Tai said. “Fundamentally, what we’re doing is innovating the way you do trade policy, innovating the way globalization is going to play out into the future.”

    Tai said she is trying to foster a trade policy with other countries that “allows for us to build our middle class together and to stop pitting them against each other, because that’s been the model we’ve been pursuing for the last several decades.”

    William Reinsch at the Center for Strategic and International Studies said it is not surprising that Asian countries involved in the initiative would say they support their middle-class workers. But he saidt Democrats have not provided the access to U.S. markets that trade partners want in return for the focus on workers.

    “The consistent message we have gotten from the Asian partners is that they are looking for tangible benefits, and the U.S. is not providing any,” he said. “Trying to rearrange the traditional social order, however meritorious that would be, can be an uphill battle.”

    The revised North American trade agreement is a model

    Tai sees herself as having a proof of concept that her approach to trade can thrive. It just happens to come from the U.S.-Mexico-Canada Agreement, the revised North American trade deal signed during the Trump administration and cited by Trump as evidence that he knows how to negotiate with the rest of the world.

    In her interview, Tai said the agreement includes a “rapid response mechanism” that enables the government to penalize factories that violate workers’ rights. Tai said that as of late September, the U.S. government has invoked the mechanism 28 times and concluded 25 of those efforts.

    Tai said that has directly benefited 30,000 Mexican workers who could elect their own union representation, allowing them to receive higher wages, back pay and other benefits.

    “We are empowering workers through trade,” she said. “And by empowering Mexico’s workers, we are ensuring that America’s workers do not have to compete with workers in our neighboring country who are being exploited and who are being deprived of rights.”

    Praise for the agreement appears to be a rare point of convergence on trade between Trump and the Biden-Harris administration. But their perspectives are different. Trump tells voters that his threats of massive tariffs can cause foreign governments to accept America’s terms on trade and immigration.

    “I ended NAFTA, the worst trade deal ever made and replaced it with the USMCA, the best trade deal ever made,” he said Monday, referring to the North America Free Trade Agreement signed by Democratic President Bill Clinton.

    Tai, barred by the federal Hatch Act from weighing in on the presidential campaign from her office, is cautious in her remarks. But she disputes Trump’s claim.

    She notes that there were actually two negotiations on trade with Canada and Mexico. The first negotiation was among the Trump administration and the other two nations. But the second was between Trump’s team and congressional Democrats who needed to ratify the deal and that led to worker protections, a component Tai worked on when she was a congressional staffer.

    But then, she added, just getting a written deal on trade protections and rights is never enough. The text needs to be backed up by action.

    “They’re just words on the page unless it’s implemented,” she said.

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  • Gloucester educators start work-to-rule with standout

    Gloucester educators start work-to-rule with standout

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    Instead of heading straight to their classrooms Friday morning, about 60 teachers and paraprofessionals at West Parish Elementary School on Concord Street gathered by the front entrance in a show of solidarity as they and educators in three other North Shore communities signaled the start of a work–to-rule job action.

    Standouts were held at all of Gloucester’s public schools Friday, Gloucester Teachers Association Vice President Matt Lewis said in an email.

    With the teachers union and the School Committee failing to reach a new contract by the end of August when the old deal expired, the teachers union voted Sept. 30 for work-to-rule at all of the city’s public schools for the foreseeable future, but not every day.

    To ease the burden on families and educators, the Gloucester Teachers Association staggered the days when work-to-rule will be in place, Lewis said. The schedule is:

    Monday: Preschool.

    Tuesday: O’Maley Innovation Middle School.

    Wednesday: Beeman Memorial and West Parish elementary schools.

    Thursday: Gloucester High School.

    Friday: Plum Cove and East Veterans elementary schools.

    Friday’s standout as a kickoff to work-to-rule. Educators wore crimson union T-shirts and stood out to the strains of Neil Diamond’s “Sweet Caroline,” Dolly Parton’s “9 to 5” and Twisted Sister’s “We’re Not Gonna to Take It” playing over loudspeakers.

    “When we fight, we win,” they chanted.

    They lined up for a photo and at 8:30 a.m., as paraprofessionals were scheduled to report, the educators filed into the school.

    “Work-to-rule is to show solidarity and to show the public and some administrators exactly what it is that we do outside of our contractual hours,” said West Parish fifth-grade teacher Beth Parkhurst. She is the school building’s representative for the Gloucester Teachers Association and serves on the union’s negotiations team. “Normally we are in the building now getting ready for school but we are staying outside to show people that these are the extra times and hours that we give the school district and our students.”

    Ongoing negotiations

    Teachers are working under the terms of a three-year agreement that expired in August. Work-to-rule means educators will withhold or refuse to perform voluntary activities not set forth in their collective bargaining agreements according to a schedule.

    In a statement Thursday, the School Committee said it was “blindsided by this GTA and MTA’s decision because negotiations are proceeding at a pace very similar to all prior teacher contract negotiations.” The School Committee disputed the claim by the teachers unions “that negotiations recently stalled.”

    A negotiation session is scheduled for Tuesday at 4:30 p.m. at Gloucester High in a meeting that is open to the public with negotiations sessions scheduled through December, according to the School Committee.

    The School Committee’s statement said that work-to-rule “means that teachers will withhold or refuse to perform activities that are not set forth in their collective bargaining agreement such as answering family emails after the end of the school day, or grading papers and exams.”

    In an email, Lewis rebutted the School Committee assertion regarding grading papers and exams.

    “That is totally false and they know it,” Lewis said.

    The Massachusetts Teachers Association said in a statement Friday “grading, lesson planning, and emailing families” are customary responsibilities that fall within teachers’ contractual responsibilities.

    “Entering work-to-rule, educators will cease performing non-customary duties outside contractual responsibilities,” the statement said. “Educators plan to cease non-customary duties one day a week, which may include offering extra help outside of required hours, chaperoning, writing letters of recommendation, and other additional voluntary responsibilities outside of the contractual day. The action demonstrates how much educators routinely give beyond what is required of them.”

    “To set the record straight, we are fighting for a fair contract to improve our students’ learning environment, which is our educators’ working environment,” Rachel Rex, a Gloucester High teacher and Gloucester Teachers Association president, said in a prepared statement.

    “When our veteran educators leave for better pay and better working conditions at neighboring school districts, it harms students,” Rex said. Unfilled “paraprofessional positions harm our students and create unsafe schools. Educators are at a breaking point, and our work-to-rule action is us collectively saying: enough is enough!”

    North Shore Educators United said 99% of educator unions in Beverly, Gloucester, Marblehead and Revere voted to enter into work-to-rule.

    Paras fighting too

    In addition, the Gloucester Association of Educational Paraprofessionals have been working under the terms of an expired contract for more than 400 days. Negotiations started in March 2023 and the contract ran out in July 1, 2023. Paraprofessionals are seeking a “living wage” among other things, and talks have gone to mediation.

    In April, teachers’ and paraprofessionals’ unions voted to combine.

    “So we are now negotiating on everyone’s behalf,” Parkhurst said, “and trying to streamline this process so that we can get this done.”

    Both unions are affiliates of the Massachusetts Teachers Association and represent more than 400 educators in Gloucester Public Schools.

    Contractual hours vary from school to school, Parkhurst said. At West Parish, teachers report at 8:48 a.m., and paraprofessionals at 8:30 a.m. “so we are going in with the paras,” Parkhurst said about when teachers would enter the building.

    When asked about sticking points, Parkhurst said: “They have rejected almost every proposal that we’ve given them and many of them without any discussion. Many of them without any research and a lot of it has to do with school safety, hours for teachers to prep … and that’s all we are asking for is time to do our jobs on our own.”

    When asked if wages were the major sticking point, Parkhurst said they had not discussed wages until their most recent negotiations on Sept. 23.

    “They didn’t give us a wage proposal until our last negotiations,” she said.

    “We are in mediation,” said Margaret Rudolph, a veteran special education paraprofessional at West Parish. She said there were a variety of reasons for the impasse “but really living wage is a big one for us because we really make very little money.”

    “My message is that we want a fair contract and we want to be treated as educators just like the teachers and we do as much as they do,” she said.

    Salary proposals

    According to an update on the School Committee’s website on the exchange of opening salary proposals by the negotiations teams, “GTA leadership is proposing that teacher salaries increase by a minimum of 28% and a maximum of more than 50% over four years.”

    The School Committee said the Gloucester Teachers Association/Massachusetts Teachers Association proposal would raise the top salary from $97,500 to $125,000 annually and increase other teachers’ salaries from $80,000 to $125,000.

    The School Committee’s opening salary offer would increase the top teacher pay to $104,800 in three years while less veteran teachers would receive increases of 15% to 25%.

    The School Committee team said it “is committed to working with the GTA to come to agreement on important and complex issues such as increasing teacher salaries, expanding leave benefits, and ensuring we agree to a contract that helps improve student learning, engagement, and achievement.” 

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    By Ethan Forman | Staff Writer

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  • Jobs report stokes Wall Street rally that erases the week’s earlier losses

    Jobs report stokes Wall Street rally that erases the week’s earlier losses

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    Wall Street soared Friday on news that employers are still hiring in strong numbers, recovering from slumps caused by fears that escalating Middle East tensions could impact global energy supply.

    • S&P 500: 5,751.07 ⬆️ up 0.90%
    • Nasdaq Composite: 18,137.85 ⬆️ up 1.22%
    • Dow Jones Industrial Average: 42,352.75 ⬆️ up 0.81% 
    • STOXX Europe 600: 518.56 ⬆️ up 0.44%
    • Hang Seng Index: 22,736.87 ⬆️ up 2.82%
    • Nikkei 225: 38,635.62 ⬆️ up 0.22%
    • Bitcoin: $62,336.70 ⬆️ up 2.62%

    US: Wall Street gains on stellar jobs report
    US employers added 254,000 jobs in September, surpassing estimates and signaling continued economic strength. The S&P 500 closed up 0.90%, and the Dow neared its record, up 0.81%. Meanwhile, the tech-heavy Nasdaq climbed 1.22% with big gains for Nvidia, Broadcom Corp. and Advanced Micro Devices.

    The news erased losses from earlier in the week, as S&P 500 finished with a 0.22% weekly gain, while the Dow added 0.09%, and the Nasdaq ticked up 0.1%.

    Europe: US jobs report lifts markets abroad
    Europe markets were mixed in early trading but gained on the U.S. jobs report. The Stoxx Europe 600 closed up 0.44% and the U.K.’s FTSE made up for losses early in the day, hovering near its Thursday close.

    China: Hong Kong rally resumes after holiday
    Hong Kong shares resumed their rally on the back of China’s stimulus measures, jumping 2.82% a day after traders took profits following a three-week rise of some 30%.

    Japan: Markets end week near where they started
    The Nikkei 225 ended a yo-yo week with a slight 0.22% gain after new Prime Minister Shigeru Ishiba outlined his economic agenda, which includes above-inflation pay raises and assistance for low-income households.

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    Brooke Seipel

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  • Teachers, union leaders join Harris-Walz campaign in Orlando to slam Project 2025

    Teachers, union leaders join Harris-Walz campaign in Orlando to slam Project 2025

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    click to enlarge

    photo by McKenna Schueler

    In a second term, Trump ‘would slash funding for our K-12 schools,’ predicted Dr. Robert Cassanello (Oct. 4, 2024)

    Just ahead of World Teachers Day, local teachers and leaders of unions that represent staff in Orange County public schools gathered at the teachers’ union hall Friday with the Harris-Walz campaign to slam Project 2025, the right-wing policy playbook tied to members of the former Trump administration.

    At the Orange County Classroom Teachers Association union hall, University of Central Florida professor Dr. Robert Cassanello and other local educators slammed parts of Project 2025 that could decimate the public education system as we know it, and undercut the labor unions that fight to preserve it.

    “[Trump’s] extreme Project 2025 has a blueprint of getting rid of the Department of Education if he’s re-elected,” Cassanello, who teaches history at UCF and sits as vice chair of the statewide United Faculty of Florida labor union, pointed out.

    A vocal critic of the GOP’s war on what they see as “ideological indoctrination” in higher education, and faculty like himself, Cassanello painted a grim picture for what he believes would occur under a second Trump administration, should the former President be victorious in the Nov. 5 election.

    “He would slash funding for our K-12 schools,” Cassanello predicted, “all the while giving massive tax cuts to the billionaires and big corporations.”

    click to enlarge Ron Pollard, president of OESPA, and local educators speak out against Project 2025 (Oct. 4, 2024) - photo by McKenna Schueler

    photo by McKenna Schueler

    Ron Pollard, president of OESPA, and local educators speak out against Project 2025 (Oct. 4, 2024)

    Project 2025, a manifesto published by the right-wing Heritage Foundation, is a 922-page policy playbook developed for the next Republican administration that reaches the White House. Based on the outcome of this November’s election, that could be an administration led by former President and billionaire Donald Trump.

    While Trump has repeatedly denied any ties to Project 2025 and continues to claim he hasn’t read it, a number of his close allies directly contributed to it. A review by CNN identified at least 140 people who worked in the former Trump administration involved in the book’s policy proposals, including longtime adviser and notorious xenophobe Stephen Miller.

    The Project 2025 playbook has been highlighted by Democratic presidential candidate Vice President Kamala Harris on the campaign trail as a preview of what Americans could expect if Trump is re-elected to the White House.

    Critical for educators is the part of the manifesto that directly tackles issues regarding education — by in part promoting policies unpopular with public school advocates, some of which have already started to play out in Florida — from efforts to undermine public employee unions to the deregulation of child labor laws and the expansion of school voucher programs that generally don’t improve educational outcomes, even as they divert funds away for public schools and worsen inequality.

    “Florida has been a testing ground for Project 2025 ideas,” said Ron Pollard, president of the Orange Education Support Professionals Association, a labor union that represents thousands of non-instructional staff in schools, from custodial workers to bus drivers, cafeteria workers and paraprofessionals. “I want everyone who is listening today to hear this when we say we will never stop fighting against those who think of our children’’s education and safety as just a means to an end.”

    Pollard, a former custodian for Orange County Public Schools and former member of the U.S. Steelworkers union, described Harris and her VP pick, Gov. Tim Walz of Minnesota, as leaders “who understand that our country is only as strong as its students.”

    Maira Rivera, a local teacher and vice president of the Orange County Classroom Teachers Association, agreed. “They believe that education is a key to the middle class, and they know that when our middle class is strong, America is strong,” said Rivera, a grandmother of three OCPS students and mother of a daughter who also teaches in the public school system.

    click to enlarge Teachers, union leaders join Harris-Walz campaign in Orlando to slam Project 2025

    photo by McKenna Schueler

    Rivera noted several pillars of Harris’ platform that directly touch on issues important to many parents, students and teachers, including access to affordable childcare, advancing the Biden administration’s efforts on student debt relief, and investing in financial aid programs to help make higher education more affordable for families with fewer means.

    “I don’t need to remind anyone that Gov. Tim Walz is a teacher and a coach. He knows firsthand what our educators are facing. Or that Vice President Kamala is a staunch supporter of unions and their right to collectively bargain,” Rivera said.

    As a result of a controversial law (SB 256) approved by Florida Gov. Ron DeSantis last year, more than 68,000 public employees in Florida have lost their union representation and thus the protections and benefits they received under their union contracts. Some of those unions were first established decades ago, but due to stringent new mandates for unions, have been decertified.

    Several groups affiliated with Project 2025 contributors or that otherwise sit on its advisory board directly lobbied or otherwise proudly advocated for that Florida legislation, including lobbying arms for the Florida-based Foundation for Government Accountability, the Mackinac Center for Public Policy, and the out-of-state James Madison Institute.

    The bill was also a priority of the Florida chapter of Americans for Prosperity, a Koch-affiliated think tank that seeks to defund the public education system and drain it of resources.

    Pollard, whose union is facing a recertification election as a result of the new regulations (essentially, a vote by members on whether to keep the union or dissolve it), argued Friday that unions are “vital” to the middle class. Research shows public employee unions in particular can help shrink the pay gap between the private and public sectors — a problem that disproportionately affects women and Black workers.

    Unions, said Pollard, provide “an avenue for better raises, for better benefits, for the very things that we strive for as family members to feed our children.” Without a union, individual workers lack the power of that collective voice, and the opportunity to demand meaningful change to wages and working conditions at the bargaining table.

    “This Project 2025 stuff is designed to take us back to a time when we fought for everything, and had nothing,” he continued. “This country was built on the back of unions.”

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    McKenna Schueler

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  • Jobs report is likely to show another month of modest but steady hiring gains

    Jobs report is likely to show another month of modest but steady hiring gains

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    WASHINGTON — The U.S. labor market is still reliably cranking out jobs each month, enough to give Americans the confidence and paychecks to keep spending and sustaining the economy. Yet the pace of hiring has lost momentum over the past several months, evidence that employers have become more cautious.

    September likely brought more of the same. The Labor Department is expected to report Friday that employers added a decent but hardly spectacular 140,000 jobs last month, roughly matching August’s 142,000 gain, according to forecasters surveyed by the data firm FactSet.

    “We’ll get modest employment gains, not all that great, but enough to keep the economy moving forward,’’ said Brian Bethune, an economist at Boston College.

    The economy’s resilience has come as a relief. Economists had expected that the Federal Reserve’s aggressive campaign to subdue inflation — it jacked up interest rates 11 times in 2022 and 2023 — would cause a recession. It didn’t. The economy kept growing even in the face of ever-higher borrowing costs for consumers and businesses.

    Last month, the Fed began cutting rates, in part to try to bolster the slowing job market. And, as Bethune noted, the once unlikely prospect of a “soft landing’’ — in which high interest rates help vanquish inflation without triggering a recession — “is already secure.’’

    The economy is weighing heavily on voters as the Nov. 5 presidential election nears. Many Americans are unimpressed by the job market’s durability and are still frustrated by high prices, which remain on average 19% above where they were in February 2021. That was when inflation began surging as the economy rebounded with unexpected speed and strength from the pandemic recession, causing severe shortages of goods and labor.

    Across the economy, most indicators look solid. The U.S. economy, the world’s largest, grew at a vigorous 3% annual pace from April through June, boosted by consumer spending and business investment. A forecasting tool from the Federal Reserve Bank of Atlanta points to slower but still healthy 2.5% annual growth in the just-ended July-September quarter.

    On Thursday, the Institute for Supply Management, an association of purchasing managers, reported that America’s services businesses grew for a third straight month in September and at an unexpectedly fast pace. The economy’s service sector is closely watched because it represents more than 70% of U.S. jobs.

    Last month, the nation’s households increased their spending at retailers. And even with hiring having slowed, Americans are enjoying extraordinary job security. Layoffs are near a record low as a percentage of employment. The number of people filing for unemployment benefits also remains near historically low levels.

    Companies seem generally reluctant to let workers go even though they are also hesitant to expand their payrolls. That unusual dynamic may stem from many employers having been caught flat-footed and short of staff after the economy began roaring back from the pandemic recession.

    Employers added an average of just 116,000 jobs a month from June through August, including a dismal 89,000 in July. That marked the weakest three months of hiring since mid-2020. Hiring has plummeted from a record average of 604,000 a month in 2021 at the end of COVID recession and 377,000 in 2022.

    Posted job openings, too, have declined steadily, to 8 million in August, after having peaked at 12.2 million in March 2022.

    Workers have noticed the chillier environment for jobseekers. Far fewer feel confident enough to leave their jobs to seek a better position. The Labor Department reported this week that the number of Americans who are quitting their jobs fell to its lowest level since August 2020, when the economy was still reeling from COVID.

    Job-hopping isn’t as lucrative as it had been, either. Last month, those who changed jobs were earning 6.6% more than they had earned a year earlier — a 1.9 percentage point premium over the 4.7% median pay gain of those who stayed put. The job-hopping premium used to be far higher — a peak of 8.8 percentage points in April 2022, according to Liv Wang, lead data scientist at ADP Research.

    Two and a half years of high interest rates, it seems, have taken a toll on the job market. But relief might be coming.

    The Fed last month slashed its benchmark interest rate by a hefty half-percentage point — its first and biggest rate cut since the 2020 recession. The central bank said it was encouraged by progress in its fight against inflation. Consumer prices were up 2.5% from a year earlier in August, barely above the Fed’s 2% inflation target and down dramatically from a year-over-year peak of 9.1% in June 2022.

    Friday’s jobs report may bring more good news on inflation. Diane Swonk, chief economist at the tax and consulting firm KPMG, said she expects that average hourly wages rose 0.2% last month, down from a 0.4% increase in August. That would translate, she says, into a 3.7% gain from a year earlier. That’s close to the 3.5% that many economists regard as consistent with the Fed’s inflation target. Such a drop would ease pressure on employers to pass along the cost of higher wages by raising their prices and thereby feeding inflation.

    The Fed’s focus shifted to supporting the job market as hiring slowed this summer and unemployment rose, even while remaining relatively low. The central bank has signaled that it expects to cut its key rate twice more this year — likely by modest quarter-points — and four additional times in 2025.

    The expectation of lower borrowing costs could encourage employers to pick up the pace of hiring.

    “They see light at the end of the tunnel of this monetary tightening that’s been going on a couple of years,’’ Bethune said.

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  • U.S. Dockworkers End Strike Over Automation in Temporary Agreement

    U.S. Dockworkers End Strike Over Automation in Temporary Agreement

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    And just like that, the strike was over. At least for now.

    The 47,000 members of the International Longshoremen’s Association (ILA), who have been on strike since Tuesday, will reportedly go back to work Friday after an interim deal was reached, according to a new report from CNN. The news outlet cites two unnamed sources who stressed that “there is not yet a final agreement on the complete contract,” but that there’s a “tentative deal” on wages.

    The strike, which impacted 36 ports on the East Coast and Gulf Coast, was instigated over terms involving both pay and the role of automation in international shipping. And there were major concerns that a prolonged strike could impact the availability of consumer goods in the U.S. Workers have been walking picket lines holding signs that read “Automation threatens our future: Stand with the ILA” and “Machines don’t feed families: Support the ILA.”

    The tentative deal will need to be ratified by the union members and the deal, also reported by the Associated Press, only suspends the strike until January 15. The union reached the temporary agreement with the United States Maritime Alliance, which represents the shipping companies, terminal operators, and the port authorities.

    The agreement will allow people to get back to work while a longer six-year contract is negotiated and includes a temporary wage hike of 62%, according to Reuters. The union had asked for a 77% increase and the Maritime Alliance offered a 50% increase.

    Business owners have been upset with the White House and have called for President Joe Biden to invoke the 1947 Taft-Hartley Act, which can be used by presidents to order workers back to work. But Biden declined to use that power, instead urging both sides to get together in the interest of helping keep goods flowing after the devastation of Hurricane Helene.

    “This natural disaster is incredibly consequential,” Biden said Wednesday, according to the Associated Press. “The last thing we need on top of that is a man-made disaster—what’s going on at the ports.”

    Gov. Ron DeSantis invoked the hurricane relief efforts when he threatened to break the strike on Thursday, calling the workers’ actions “unacceptable.”

    “At my direction, the Florida National Guard and the Florida State Guard will be deployed to critical ports affected to maintain order, and if possible, resume operations that would otherwise be shut down during this interruption,” DeSantis said, according to NBC6 in South Florida.

    The strike has been contentious, to say the least. ILA president Harold J. Daggett complained Wednesday that he had been subjected to death threats and was upset that some news outlets were reporting personal details about his life.

    “The New York Post newspaper this week published aerial photographs of his New Jersey home, including posting his address in an article,” the union said in a press release. “They printed other details of his personal life, full of false accusations against him, with the sole intent on destroying his character and disparaging his 68-year ILA career, with the intention of weakening his ability to negotiate a new Master Contract for ILA members.”

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  • US job openings rise to 8 million as labor market remains sturdy

    US job openings rise to 8 million as labor market remains sturdy

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    WASHINGTON — U.S. job openings rose unexpectedly in August as the American labor market continued to show resilience.

    The Labor Department reported Tuesday that employers posted 8 million vacancies in August, up from 7.7 million in July. Economists had expected openings to be virtually unchanged. Openings were up in construction and in state and local government.

    Layoffs fell in August. But the number of Americans quitting their jobs — a sign of confidence in their job prospects — slid to the lowest level since August 2020 when the economy was reeling from COVID-19 lockdowns.

    Job openings have come down steadily since peaking at 12.2 million in March 2022, but they remain above where they stood before the coronavirus pandemic hit the American economy in early 2020. When the economy roared back with unexpected strength from COVID-19 lockdowns, companies scrambled to find enough workers to keep up with customer orders.

    The overheating economy caused an outburst of inflation, and the Federal Reserve responded by raising its benchmark interest rate 11 times in 2022 and 2023. Inflation has come down — from a peak of 9.1% in June 2022 to 2.5% in August.

    The economy proved surprisingly resilient in the face of the Fed hikes, averting a widely forecast recession. But the job market has gradually lost momentum. Hiring averaged just 116,000 net new jobs a month from June through August — the weakest three-month average since mid-2020.

    When the Labor Department releases its jobs report for September on Friday, it is expected to show that employers added 143,000 jobs last month and that the unemployment rate remained at a low 4.2%, according to a survey of forecasters by the data firm FactSet.

    The Fed, satisfied with the progress against inflation and worried about the cooling job market, last month cut its benchmark rate by a hefty half percentage point, the central bank’s first and biggest rate cut since March 2020.

    “Job openings had a big gain, and while these numbers are volatile, it’s likely employers see falling interest rates spurring the economy and may want to staff up,” said Robert Frick, economist with the Navy Federal Credit Union.

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  • Florida Democrats voice support for Brightline workers’ right to organize

    Florida Democrats voice support for Brightline workers’ right to organize

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    click to enlarge

    U.S. House Rep. Debbie Wasserman Schultz

    Florida’s entire Democratic U.S. House delegation, including local Congressmen Maxwell Frost (D-10) and Darren Soto (D-9), have voiced support for Brightline workers’ right to organize, following allegations from the Transport Workers Union of union-busting behavior by the rail company.

    “Since 1926, the Railway Labor Act has protected rail workers and their right to form a union and collective bargain — a core principle we all unequivocally support,” the U.S. House delegation of eight Congressional members, led by U.S. House Rep. Debbie Wasserman-Schultz, shared in a statement. “With the news of employees working onboard Brightline trains from Miami to Orlando seeking to organize with the Transport Workers Union (TWU), we reaffirm and publicly support the right and ability to organize with the National Mediation Board as intended under the Railway Labor Act.”

    The statement, pretty uncontroversial on its face, comes shortly after TWU president John Samuelsen sent a letter to U.S. Department of Transportation Secretary Pete Buttigieg this month, urging him to direct the DOT to deny additional federal funds to Brightline and to investigate the for-profit passenger train’s “compliance with its obligations” under previously-awarded grants.

    “Faced with workers’ desires to unionize, Brightline and its president, Patrick Goddard, have deliberately chosen the path of confrontation and acrimony,” Samuelsen wrote in a letter to Buttigieg dated Sept. 19. “Although Brightline bosses are anti-worker, President Joe Biden is not.” The U.S. DOT, he continued, “must give funding priority to companies that don’t interfere with workers seeking to unionize.”

    The statement from the Congressional delegation notably does not directly reference union-busting allegations, nor condemn such behavior.

    The Transport Workers Union, representing some 155,000 workers in the transportation industry nationwide, first announced a historic organizing drive among onboard attendants for Brightline in early August. The company, which has been friendly to labor unions out west, runs a high-speed rail line in Florida, from Miami up to its new station in Orlando. The company does not have other union-represented workers in Florida.

    Shortly after the Florida workers filed cards of support for unionization with the National Mediation Board, however (as part of the standard process to request a union election in the rail industry), Brightline hired on attorneys from Littler Mendelson, a firm notorious for its “union avoidance” services, to represent them. An archived list of “do”s and “don’t”s from the firm, for instance, encourages employers to“[t]ell workers that they are free to support the union or not, as they see fit, but you hope they vote against it.” 

    Brightline president Goddard sent an email to Brightline employees last month, according to screenshots shared with Orlando Weekly, where he basically did just that. In his email, Goddard wrote that, while he can now see that some employees feel “unheard,” he’d prefer to approach such discontent “by working together, without a third party involved.”

    “There is a legal process that is currently playing out and we will keep the team updated as more information becomes available,” Goddard wrote.

    Brightline, a private company, has already been awarded billions of dollars in federal grants to construct its high-speed rail line out west — a connection from Las Vegas to Southern California — and has similarly sought out government funds for expansion plans in Florida.

    “Elected officials in Florida are sending a clear message to Brightline — stop interfering with Brightline’s onboard workers’ efforts to form a union,” wrote union president Samuelsen in a statement responding to the congressional delegation’s show of support. “Brightline must stop delaying an election so workers can join the TWU and begin collective bargaining.”

    In addition to anti-union messaging, the TWU has said that Brightline is also trying to delay a union election by claiming it does not fall under the jurisdiction of the National Mediation Board, which oversees union elections in the rail and airline industries.

    Instead, Brightline has argued that a union election should take place through the National Labor Relations Board, which oversee private sector labor relations in all other industries. The union, however, has claimed this argument is meant to drag out the organizing process, thus giving Brightline (and their lawyers) more time to intimidate employees against unionization.

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    McKenna Schueler

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  • Mexico’s president touts austerity on his way out of office but lavishes largesse on friends

    Mexico’s president touts austerity on his way out of office but lavishes largesse on friends

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    MEXICO CITY (AP) — Mexico’s outgoing president has always taken pride in his reputation as a penny-pincher but on Friday, three days before leaving office, Andrés Manuel López Obrador announced generous cash giveaways for his allies in a radical union movement.

    It was part of what analysts call López Obrador’s contradictory policies of cutting some government services to the bone while handing out vast amounts for his own pet projects and to political supporters.

    He granted an electrical workers’ union about $95 million a year in unearned pension benefits, describing it as “an act of justice.”

    In 2009, some 7,000 of the unionized workers from the debt-ridden, corrupt and overstaffed government power company were laid off. Still, they spent the next decade supporting López Obrador’s two subsequent presidential campaigns.

    At the time they were sacked, the workers had not accumulated enough years to retire, under policies allowing retirement after 25 years of service. On Friday, López Obrador gave them pensions anyway.

    The action was in line with his generosity to those who support him.

    Last year, he gave about $45 million to former workers of a defunct government-owned airline, Mexicana, in order to acquire the trademark rights to the airline’s name, Mexicana de Aviacion.

    Experts say the name had essentially no commercial value after the airline went bankrupt in 2010, but the workers — whose pensions were wiped out by the company’s collapse — had been been strong supporters of López Obrador in his presidential bids. He has since spent hundreds of millions of dollars more to revive a smaller version of the government airline.

    The lavish giveaways contrast sharply with the image of extreme austerity that López Obrador has sought to project since taking office in 2018 — he sold off the presidential jet and flew around the country on commercial airline flights, in tourist class. Later, he switched to using military aircraft for trips.

    He largely eliminated federal oversight and regulatory agencies, claiming they cost too much and arguing that one “cannot have a rich government with poor people.” Federal revenues sharing for state governments and funding local police forces has been slashed to the bone.

    That austerity has meant less money for basic projects, including building infrastructure, road construction and maintenance and policing.

    Meanwhile, in a rush to finish López Obrador’s pet projects — mostly rail and refinery projects of questionable profitability — the government went on a borrowing spree, running a deficit equivalent to 5% of GDP. That has undermined the central bank’s attempts to control the 5% annual inflation with domestic interest rates of 10.5%.

    Gabriela Siller, director of economic analysis of the local financial group Banco Base, said the contradictory policies have hurt Mexico.

    There has been less “physical investment,” Siller said. “Paradoxically, this administration is ending up with more debt and a very high budget deficit.”

    In his final days in office, López Obrador has been harsh to his enemies.

    Late on Monday, he essentially expropriated the $1.9 billion property on the Caribbean coast owned by a U.S. firm that operates a stone quarry and seaport just south of the resort of Playa del Carmen. He declared the land a nature reserve — despite previously granted permits for a quarry and a dock there.

    López Obrador had previously threatened to expropriate the property and later offered to buy it for about $385 million, saying at the time he wanted to turn it into a tourist attraction. The company has estimated the land’s value at about $1.9 billion.

    The U.S. company that owned the property — Alabama-based Vulcan Materials — said Tuesday the expropriation violates the U.S.-Mexico-Canada free trade agreement and was part of “a series of threats and actions by the current administration against our operations.”

    The outgoing Mexican leader has also engaged in very public and nasty disputes with retail, TV and banking magnate Ricardo Salinas Pliego, claiming the tycoon owes over $1 billion in back taxes.

    Then, López Obrador claimed he had tried to offer Salinas Pliego a deal to forgive late charges on the back taxes but met with the magnate’s refusal out of “arrogance.”

    Salinas Pliego punched back, accusing allies of López Obrador’s son Andy — a top leader in the president’s Morena party — of trying to extort money from businessmen with back tax audits against them.

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  • Union urges U.S. Department of Transportation to deny Brightline federal funds over alleged anti-union tactics

    Union urges U.S. Department of Transportation to deny Brightline federal funds over alleged anti-union tactics

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    Photo via Brightline/Twitter

    A labor union seeking to represent onboard attendants for Brightline in Florida is urging the U.S. Department of Transportation to deny the for-profit passenger train company federal funds over Brightline’s alleged anti-union tactics.

    The president of the Transport Workers Union, representing 155,000 U.S. workers in the rail, transportation and airline industries, wrote a letter to Department of Transportation Secretary Pete Buttigieg on Sept. 19 accusing Brightline of “abusing the public coffers and denying workers their fundamental labor rights.” Union president John Samuelsen, in his letter, also urged the DOT to investigate whether funds previously awarded to Brightline “should be clawed back due to the railroad’s non-compliance with federal law.”

    “Faced with workers’ desires to unionize, Brightline and its president, Patrick Goddard, have deliberately chosen the path of confrontation and acrimony,” Samuelsen declared.

    “Although Brightline bosses are anti-worker, President Joe Biden is not,” Samuelsen continued. “The U.S. DOT now must give funding priority to companies that don’t interfere with workers seeking to unionize.”

    A majority of the roughly 100 attendants for Brightline Florida who serve food and drinks to passengers onboard the company’s high-speed rail line filed a petition last month with the National Mediation Board, seeking to unionize with the TWU. Filing such a petition requires signed cards of support from at least 30 percent of employees, although the union says more than 50 percent have filed cards. Since then, Brighltine has retained legal counsel through the notoriously anti-union law firm Littler Mendselson, who have allegedly sought to delay workers’ vote on forming a union and are “actively pressuring” workers against unionization according to union representatives. Such behavior, the union argues, stands in clear conflict with pro-labor stances taken by the Biden administration.

    An executive order from President Joe Biden, released Sept. 4, called on federal departments, including the DOT, to specifically prioritize awarding federal funds to companies that demonstrate high labor standards such as paying competitive wages, ensuring worker safety, and demonstrating pro-union policies such as “voluntary union recognition and neutrality by the employer with respect to union organizing.”

    Brightline Florida has already received or benefited from $36 million in grants through the Consolidated Rail Infrastructure and Safety Improvements program, according to the union, while the affiliated Brightline West — a high-speed rail project that will run from Las Vegas to Southern California — has received at least $3.5 billion in federal funds. Local governments in Florida, including Brevard County, have also dedicated public funds for Brightline projects.

    In Florida, Brightline runs a high-speed passenger train from Miami up through Aventura, Fort Lauderdale, Boca Raton, West Palm Beach and Orlando, where its higher-fare service has been especially popular. The rail system is expected to further expand to Tampa, the Treasure Coast (if local government officials can reach a deal with Brightline) and Cocoa.

    Onboard attendants for Brightline Florida are the first to seek unionization, but union president Samuelsen previously told Orlando Weekly that other Brightline employees have also reached out to the union to discuss joining. The Transport Workers Union also represents employees of other rail companies, including Amtrak, whose onboard attendants recently won a union contract delivering a 34 percent compounded wage increase over seven years, plus paid parental leave and stable healthcare costs.

    President Biden has declared himself the “most pro-union president” ever, and secured endorsements from many major labor unions — including the TWU — before he dropped his bid for re-election earlier this year. The union has since endorsed Democratic Vice President Kamala Harris, along with other major unions that include Unite Here, the Service Employees International Union and the United Auto Workers, among others.

    The union’s letter to the DOT calls for further investigation into funds Brightline has received so far. It states that while Brightline has benefited from federal funds allocated specifically for rail projects, the company is now claiming it is not a rail carrier under the Railway Labor Act (RLA) and therefore does not fall under the jurisdiction of the National Mediation Board, which governs labor relations specifically in the rail and airline industries.

    Brightline’s lawyers have used this argument to dismiss the workers’ petition to unionize with the NMB, arguing such a petition should instead be filed with the National Labor Relations Board, which oversees the rest of the private sector. The union has decried this argument as a targeted delay tactic.

    “If the company sincerely believes these arguments, it should be obligated to repay the more than $36 million it has inappropriately received or benefited from out of monies reserved for use by or for RLA-covered carriers,” the letter reads.

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  • Strike by more than 1,000 Samsung workers enters a third week in India

    Strike by more than 1,000 Samsung workers enters a third week in India

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    NEW DELHI (AP) — A strike by more than 1,000 workers at a Samsung India Electronics plant has entered its third week, and management is at an impasse over their demands for recognition of the employees’ union and higher pay, a workers union spokesman said on Wednesday,

    The employees strike in the plant near Chennai, the capital of the southern state of Tamil Nadu, started on Sept. 9 with a key demand for a 25-30% pay hike in the average monthly salary of 30,000-35,000 rupees ($425), said K.C. Gopi Kumar, the spokesman for the Samsung India Electronics workers union.

    “Our foremost demand is recognition of the union and its rights by the management,” Kumar said.

    A Samsung official said that management was prepared to discuss the workers’ demands.

    The official, who spoke on condition of anonymity because he wasn’t authorized to talk to reporters, said the company wanted to negotiate directly with the employees’ representatives rather than through the Center of Indian Trade Unions, or CITU.

    The CITU is an Indian trade union aligned with a communist party.

    Samsung said that it paid 1.8 times more in India than the average salary of similar workers employed at other regional companies.

    The workers’ union says that up to 70% of production has been disrupted at the Sriperumbudur facility in southern India, which produces televisions, refrigerators and washing machines.

    However, the Samsung official said that after an initial disruption of 50% production, the plant was running at near average capacity with nonstriking workers, apprentices and newly hired staff on the job.

    The electronics company appealed to striking workers to resume their jobs.

    In a communication with the workers, Samsung assured them that it wouldn’t take action against those employees who wished to resume work, but warned them of termination if they continued with their protest, the Press Trust of India news agency reported.

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