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  • Penn State Scandal Fast Facts | CNN

    Penn State Scandal Fast Facts | CNN

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    CNN
     — 

    Here’s a look at the Penn State sexual abuse scandal. On November 4, 2011, a grand jury report was released containing testimony that former Penn State defensive coordinator Jerry Sandusky sexually abused eight young boys over a period of at least 15 years. Officials at Penn State purportedly failed to notify law enforcement after learning about some of these incidents. On December 7, 2011, the number of victims increased to 10. Sandusky was found guilty in 2012.

    Included is a timeline of accusations, lists of the charges against Sandusky, a list of involved parties, a post grand jury report timeline, information about The Second Mile charity and Sandusky with links to the grand jury investigation.

    Jerry Sandusky

    Birth date: January 26, 1944

    Birth place: Washington, Pennsylvania

    Birth name: Gerald Arthur Sandusky

    Marriage: Dorothy “Dottie” (Gross) Sandusky (1966-present)

    Children: (all adopted) E.J., Kara, Jon, Jeff, Ray and Matt. The Sanduskys also fostered several children.

    Occupation: Assistant football coach at Penn State for 32 years before his retirement, including 23 years as defensive coordinator.

    Initially founded by Sandusky in 1977 as a group foster home for troubled boys, but grew into a non-profit organization that “helps young people to achieve their potential as individuals and community members.”

    May 25, 2012 – The Second Mile requests court approval in Centre County, Pennsylvania, to transfer its programs to Arrow Child & Family Ministries and shut down.

    August 27, 2012 – The Second Mile requests a stay in their petition to transfer its programs to Arrow Child & Family Ministries saying, “this action will allow any pending or future claims filed by Sandusky’s victims to be resolved before key programs or assets are considered for transfer.”

    March 2016 – After years of dismantling and distributing assets to Arrow Child & Family Ministries and any remaining funds to the Pennsylvania Attorney General to hold in escrow, the organization is dissolved.

    Source: Grand Jury Report

    1994-1997 – Sandusky engages in inappropriate conduct with different boys he met separately through The Second Mile program.

    1998 – Penn State police and the Pennsylvania Department of Public Welfare investigate an incident in which the mother of an 11-year-old boy reported that Sandusky showered with her son.

    1998 – Psychologist Alycia Chambers tells Penn State police that Sandusky acted the way a pedophile might in her assessment of a case in which the mother of a young boy reported that Sandusky showered with her son and may have had inappropriate contact with him. A second psychologist, John Seasock, reported he found no indication of child abuse.

    June 1, 1998 – In an interview, Sandusky admits to showering naked with the boy, saying it was wrong and promising not to do it again. The district attorney advises investigators that no charges will be filed, and the university police chief instructs that the case be closed.

    June 1999 – Sandusky retires from Penn State after coaching there for 32 years, but receives emeritus status, with full access to the campus and football facilities.

    2000 – James Calhoun, a janitor at Penn State, tells his supervisor and another janitor that he saw Sandusky sexually abusing a young boy in the Lasch Building showers. No one reports the incident to university officials or law enforcement.

    March 2, 2002 – Graduate Assistant Mike McQueary tells Coach Joe Paterno that on March 1, he witnessed Sandusky sexually abusing a 10-year-old boy in the Lasch Building showers. On May 7, 2012, prosecutors file court documents to change the date of the assault to on or around February 9, 2001.

    March 3, 2002 – Paterno reports the incident to Athletic Director Tim Curley. Later, McQueary meets with Curley and Senior Vice President for Finance and Business Gary Schultz. McQueary testifies that he told Curley and Schultz that he saw Sandusky and the boy engage in anal sex; Curley and Schultz testify they were not told of any such allegation. No law enforcement investigation is launched.

    2005 or 2006 – Sandusky befriends another Second Mile participant whose allegations would form the foundation of the multi-year grand jury investigation.

    2006 or 2007 – Sandusky begins to spend more time with the boy, taking him to sporting events and giving him gifts. During this period, Sandusky performs oral sex on the boy more than 20 times and the boy performs oral sex on him once.

    2008 – The boy breaks off contact with Sandusky. Later, his mother calls the boy’s high school to report her son had been sexually assaulted and the principal bans Sandusky from campus and reports the incident to police. The ensuing investigation reveals 118 calls from Sandusky’s home and cell phone numbers to the boy’s home.

    November 2008 – Sandusky informs The Second Mile that he is under investigation. He is removed from all program activities involving children, according to the group.

    November 4, 2011 – The grand jury report is released.

    November 5, 2011 – Sandusky is arraigned on 40 criminal counts. He is released on $100,000 bail. Curley and Schultz are each charged with one count of felony perjury and one count of failure to report abuse allegations.

    November 7, 2011 – Curley and Schultz are both arraigned and resign from their positions.

    November 9, 2011 – Paterno announces that he intends to retire at the end of the 2011 football season. Hours later, university trustees announce that President Graham Spanier and Coach Paterno are fired, effective immediately.

    November 11, 2011 – McQueary, now a Penn State receivers’ coach, is placed on indefinite administrative leave.

    November 14, 2011 – In a phone interview with NBC’s Bob Costas, Sandusky states that he is “innocent” of the charges and claims that the only thing he did wrong was “showering with those kids.”

    November 15, 2011 – The Morning Call reports that in a November 8, 2011, email to a former classmate, McQueary says he did stop the 2002 assault he witnessed and talked with police about it.

    November 16, 2011 – Representatives of Penn State’s campus police and State College police say they have no record of having received any report from McQueary about his having witnessed the rape of a boy by Sandusky.

    November 16, 2011 – A new judge is assigned to the Sandusky case after it is discovered that Leslie Dutchcot, the judge who freed Sandusky on $100,000 bail, volunteered at The Second Mile charity.

    November 21, 2011 – It is announced that former FBI Director Louis Freeh will lead an independent inquiry for Penn State into the school’s response to allegations of child sex abuse.

    November 22, 2011 – The Patriot-News reports that Children and Youth Services in Pennsylvania has two open cases of child sex abuse against Sandusky. The cases were reported less than two months ago and are in the initial stages of investigation.

    November 22, 2011 – The Administrative Office of Pennsylvania Courts announces that all Centre County Common Pleas Court judges have recused themselves from the Sandusky case. This is to avoid any conflicts of interest due to connections with Sandusky, The Second Mile charity, or Penn State.

    November 30, 2011 – The first lawsuit is filed on behalf of a person listed in the complaint as “John Doe,” who says he was 10 years-old when he met Sandusky through The Second Mile charity. His attorneys say Sandusky sexually abused the victim “over one hundred times” and threatened to harm the victim and his family if he alerted anyone to the abuse.

    December 2, 2011 – A victim’s attorneys say they have reached a settlement with The Second Mile that allows it to stay in operation but requires it to obtain court approval before transferring assets or closing.

    December 3, 2011 – In an interview with The New York Times, Sandusky says, “If I say, ‘No, I’m not attracted to young boys,’ that’s not the truth. Because I’m attracted to young people – boys, girls – I …” His lawyer speaks up at that point to note that Sandusky is not “sexually” attracted to them.

    December 7, 2011 – Sandusky is arrested on additional child rape charges, which raises the number of victims from eight to 10 people. He is charged with four counts of involuntary deviate sexual intercourse and two counts of unlawful contact with a minor. He also faces one new count of indecent assault and two counts of endangering a child’s welfare, in addition to a single new count of indecent assault and two counts of corruption of minors.

    December 8, 2011 – Sandusky is released on $250,000 bail. He is placed under house arrest and is required to wear an electronic monitoring device. He is also restricted from contacting the victims and possible witnesses, and he must be supervised during any interactions with minors.

    December 13, 2011 – Sandusky enters a plea of not guilty and waives his right to a preliminary hearing.

    December 16, 2011 – A hearing is held for Curley and Schultz. McQueary testifies he told university officials that he saw Sandusky possibly sexually assaulting a boy in 2002. Following the testimony, the judge rules that the perjury case against Curley and Schultz will go to trial. The incident is later said to have happened in 2001.

    January 13, 2012 – Curley and Schultz enter pleas of not guilty for their failure to report child sex abuse.

    January 22, 2012 – Paterno dies at the age of 85.

    February 14, 2012 – Penn State says that the Sandusky case has cost the university $3.2 million thus far in combined legal, consultant and public relations fees.

    June 11, 2012 – The Sandusky trial begins. On June 22, Sandusky is found guilty on 45 counts after jurors deliberate for almost 21 hours. His bail is immediately revoked, and he is taken to jail.

    June 30, 2012 – McQueary’s contract as assistant football coach ends.

    July 12, 2012 – Freeh announces the findings of the investigation into Penn State’s actions concerning Sandusky. The report accuses the former leaders at Penn State of showing “total and consistent disregard” for child sex abuse victims, while covering up the attacks of a longtime sexual predator.

    July 23, 2012 – The NCAA announces a $60 million fine against Penn State and bans the team from the postseason for four years. Additionally, the school must vacate all wins from 1998-2011 and will lose 20 football scholarships a year for four seasons.
    – The Big Ten Conference rules that Penn State’s share of bowl revenues for the next four seasons – roughly $13 million will be donated to charities working to prevent child abuse.

    August 24, 2012 – “Victim 1” files a lawsuit against Penn State.

    September 20, 2012 – Penn State hires Feinberg Rozen LLP (headed by Kenneth Feinberg who oversaw the 9/11 and BP oil spill victim funds).

    October 2, 2012 – McQueary files a whistleblower lawsuit against Penn State.

    October 8, 2012 – An audio statement from Sandusky airs in which he protests his innocence and says he is falsely accused.

    October 9, 2012 – Sandusky is sentenced to no less than 30 years and no more than 60 years in prison. During the hearing, Sandusky is designated a violent sexual offender.

    October 15, 2012 – Plaintiff “John Doe,” a 21-year-old male, files a lawsuit against Sandusky, Penn State, The Second Mile, Spanier, Curley and Schultz. Doe alleges that he would not have been assaulted by Sandusky if officials, who were aware he was molesting boys, had not covered up his misconduct.

    November 1, 2012 – The Commonwealth of Pennsylvania files eight charges against former Penn State President Spanier. The charges include perjury and endangering the welfare of a child. Former university Vice President Schultz and former Athletic Director Curley face the same charges, according to Attorney General Linda Kelly.

    November 15, 2012 – The Middle States Commission on Higher Education lifts its warning and reaffirms Penn State’s accreditation.

    January 30, 2013 – Judge John M. Cleland denies Sandusky’s appeal for a new trial.

    July 30, 2013 – A judge rules that Spanier, Curley and Schultz will face trial on obstruction of justice and other charges.

    August 26, 2013 – Attorneys announce Sandusky’s adopted son and six other victims have finalized settlement agreements.

    October 2, 2013 – The Superior Court of Pennsylvania denies Sandusky’s appeal.

    October 28, 2013 – Penn State announces it has reached settlements with 26 victims of Sandusky. The amount paid by the university totals $59.7 million.

    April 2, 2014 – The Supreme Court of Pennsylvania also denies Sandusky’s appeal.

    September 8, 2014 – NCAA ends Penn State’s postseason ban and scholarship limits. The $60 million fine and the 13 years of vacated wins for Paterno remain in place.

    January 16, 2015 – The NCAA agrees to restore 111 of Paterno’s wins as part of a settlement of the lawsuit brought by State Senator Jake Corman and Treasurer Rob McCord. Also, as part of the settlement, Penn State agrees to commit $60 million to the prevention and treatment of child sexual abuse.

    December 23, 2015 – A spokeswoman for the State of Pennsylvania employee retirement system says Sandusky will receive $211,000 in back payments and his regular pension payments will resume. This is the result of a November 13 court ruling that reversed a 2012 decision to terminate Sandusky’s pension under a state law that allows the termination of pensions of public employees convicted of a “disqualifying crime.” The judge said in his ruling that Sandusky was not employed at the time of the crimes he was convicted of committing.

    January 22, 2016 – A three-judge panel reverses the obstruction of justice and conspiracy charges against Spanier, Curley and Schultz, and the perjury charges against Spanier and Curley.

    May 4, 2016 – A new allegation purports Paterno knew that his assistant coach Sandusky was sexually abusing a child as early as 1976, according to a new court filing. The ongoing lawsuit, filed in 2013, seeks to determine whether Penn State or its insurance policy is liable for paying Sandusky’s victims. At least 30 men were involved in a civil settlement with Penn State, and the number of victims could be higher.

    May 6, 2016 – CNN reports the story of another alleged victim who explains how he was a troubled young kid in 1971 when Sandusky raped him in a Penn State bathroom. He says his complaint about it was ignored by Paterno.

    July 12, 2016 – Newly unsealed court documents allege that Paterno knew about Sandusky’s abuse and that he dismissed a victim’s complaint.

    August 12, 2016 – In a bid for a new trial, Sandusky testifies at a post-conviction hearing claiming his lawyers bungled his 2012 trial. On the stand, Sandusky describes what he said as bad media and legal advice given to him by his former lawyer, Joseph Amendola.

    November 3, 2016 – The Department of Education fines Penn State $2.4 million for violating the Clery Act, a law that requires universities to report crime on campuses. It’s the largest fine in the history of the act.

    March 13, 2017 – Curley and Schultz plead guilty to a misdemeanor charge of endangering the welfare of children in exchange for the dismissal of felony charges.

    March 24, 2017 – Spanier is found guilty on one misdemeanor count of endangering the welfare of a child. Spanier was acquitted of more serious allegations, including conspiracy charges and a felony count of child endangerment.

    June 2, 2017 – Spanier and two other former administrators are sentenced to jail terms for failing to report a 2001 allegation that Sandusky was molesting young boys. Spanier whose total sentence is four to 12 months incarceration, will be on probation for two years and must pay a $7,500 fine, according to Joe Grace, a spokesman for Pennsylvania’s attorney general’s office.

    – Curley is sentenced to seven to 23 months’ incarceration and two years’ probation, Grace said. He will serve three months in jail followed by house arrest and pay a $5,000 fine.

    – Schultz is sentenced to six to 23 months’ incarceration and two years’ probation. He will serve two months in jail, followed by house arrest and pay a $5,000 fine, according to Grace.

    January 9, 2018 – Penn State reports that the total amount of settlement awards paid to Sandusky’s victims is now over $109 million.

    February 5, 2019 – In response to an appeal for a new trial that also questions the validity of mandatory minimum sentencing, the Superior Court of Pennsylvania orders Sandusky to be re-sentenced. The request for a new trial is denied.

    April 30, 2019 – US Magistrate Judge Karoline Mehalchick vacates Spanier’s 2017 conviction for endangering the welfare of a child. Spanier was set to be sentenced on the one count conviction, instead, the court ordered the conviction be vacated because it was based on a criminal statute that did not go into effect until after the conduct in question. The state has 90 days to retry him, according to court documents. The following month, Pennsylvania Attorney General Josh Shapiro appeals the judge’s decision to throw out the conviction.

    November 22, 2019 – Sandusky is resentenced to 30 to 60 years in prison, the same penalty that was previously overturned. The initial sentence of at least 30 years in prison was overturned by the Pennsylvania Superior Court, which found that mandatory minimum sentences were illegally imposed.

    March 26, 2020 – The US Office for Civil Rights finds that Penn State failed to protect students who filed sexual harassment complaints. OCR completed the compliance review after it was initially launched in 2014, and found that the University violated Title IX for several years, in various ways. Secretary of Education Betsy DeVos announces that the US Department of Education and the university have entered into a resolution agreement that compels Penn State to address deficiencies in their complaint process, reporting policy requirements, record keeping, and training of staff, university police and other persons who work with students.

    December 1, 2020 – Spanier’s conviction is restored by a federal appeals court.

    May 26, 2021 – A judge rules that Spanier will start his two month prison sentence on July 9. Spanier reports to jail early and is released on August 4 after serving 58 days.

    Sandusky Verdict

    Victim 1
    Count 1 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 2 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 3 – guilty: Indecent Assault (Felony 3)
    Count 4 – guilty: Unlawful Contact with Minors (Felony 1)
    Count 5 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 6 – guilty: Endangering Welfare of Children (Felony 3)

    Victim 2
    Count 7 – not guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 8 – guilty: Indecent Assault (Misdemeanor 2)
    Count 9 – guilty: Unlawful Contact with Minors (Felony 1)
    Count 10 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 11 – guilty: Endangering Welfare of Children (Misdemeanor 1)

    Victim 3
    Count 12 – guilty: Indecent Assault (Misdemeanor 2)
    Count 13 – guilty: Unlawful Contact with Minors (Felony 3)
    Count 14 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 15 – guilty: Endangering Welfare of Children (Felony 3)

    Victim 4
    Count 16 – ****DROPPED****: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 17 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 18 – ****DROPPED*****: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 19 – ****DROPPED*****: Aggravated Indecent Assault (Felony 2)
    Count 20 – guilty: Indecent Assault (Misdemeanor 2)
    Count 21 – guilty: Unlawful Contact with Minors (Felony 1)
    Count 22 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 23 – guilty” Endangering Welfare of Children (Felony 3)

    Victim 5
    Count 24 – not guilty: Indecent Assault (Misdemeanor 1)
    Count 25 – guilty: Unlawful Contact with Minors (Felony 3)
    Count 26 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 27 – guilty: Endangering Welfare of Children (Felony 3)

    Victim 6
    Count 28 – not guilty: Indecent Assault (Misdemeanor 1)
    Count 29 – guilty: Unlawful Contact with Minors (Felony 3)
    Count 30 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 31 – guilty: Endangering Welfare of Children (Misdemeanor 1)

    Victim 7
    Count 32 – guilty: Criminal Attempt to Commit Indecent Assault (Misdemeanor 2)
    Count 33 – ****DROPPED****: WITHDRAWN BY PROSECUTORS (unlawful contact with minors)
    Count 34 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 35 – guilty: Endangering Welfare of Children (Misdemeanor 1)

    Victim 8
    Count 36 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 37 – guilty: Indecent Assault (Misdemeanor 2)
    Count 38 – guilty: Unlawful Contact with Minors (Felony 1)
    Count 39 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 40 – guilty: Endangering Welfare of Children (Misdemeanor 1)

    (Due to 2nd indictment, counts start over with Victims 9 and 10)

    Victim 9
    Count 1 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 2 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 3 – guilty: Indecent Assault (Felony 3)
    Count 4 – guilty: Unlawful Contact with Minors (Felony 1)
    Count 5 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 6 – guilty: Endangering Welfare of Children (Felony 3)

    Victim 10
    Count 7 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 8 – guilty: Involuntary Deviate Sexual Intercourse (Felony 1)
    Count 9 – guilty: Indecent Assault (Misdemeanor 1)
    Count 10 – guilty: Unlawful Contact with Minors (Felony 1)
    Count 11 – guilty: Corruption of Minors (Misdemeanor 1)
    Count 12 – guilty: Endangering Welfare of Children (Felony 3)

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  • Autoworkers strike deadline nears as negotiators rush to avoid historic walkout | CNN Business

    Autoworkers strike deadline nears as negotiators rush to avoid historic walkout | CNN Business

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    Detroit
    CNN
     — 

    With just hours to go before labor contracts expire at America’s three unionized automakers, thousands of autoworkers could walk off the job.

    Those limited, targeted strikes could be enough to grind production to a halt at General Motors, Ford and Stellantis, which builds vehicles under the Jeep, Ram, Dodge and Chrysler brands for North America.

    But the uncertainty and confusion underscore the high stakes, with a possible historic strike at all three major automakers, disruptions to the local and national economies, and, perhaps more than anything, a hint at the future of manufacturing jobs in America.

    The union and the automakers continued to negotiate down to the wire on Thursday. GM made a new offer on Thursday afternoon, including a 20% raise, matching Ford’s offer.

    “We don’t want there to be a strike. We’re ready to work until the deadline,” Ford CEO Jim Farley told CNN. “We’d like to make history by making a historic deal, not having a historic strike,” he said.

    And President Joe Biden himself spoke to leaders of the union and the automakers, as a strike could be politically costly for him, as well.

    UAW President Shawn Fain on Wednesday evening announced plans for those targeted strikes at any company that fails to reach a labor deal with the union before contracts expire at 11:59 pm Thursday. Fain suggested the strategy, including the possibility of ramping up strikes as negotiating continues, would give the UAW more leverage. “We have the power to keep escalating and keep taking plants out,” he said.

    But Farley said on CNN Thursday that striking plants that make critical parts could affect workers at downstream assembly plants.

    “We can’t make a vehicle without an engine or transmission or stamping. So those people will, you know, basically be furloughed,” Farley said.

    Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts.

    One engine or transmission location per company might be enough to shut down nearly three-quarters of the US assembly plants, said Jeff Schuster, global head of automotive for GlobalData, an industry consultant.

    “Two plants per company, you can pretty much idle North America,” he said.

    Halting the companies’ assembly lines would likely happen in less than a week that way, Schuster said.

    One advantage for the union of a targeted strike is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund.

    If all 145,000 UAW members among the three automakers were to strike at the same time, it could cost the fund more than $70 million a week, draining the $825 million fund.

    If the companies shut down operations and lay off members who are not technically on strike, those workers could be eligible to receive state unemployment benefits rather than strike benefits, which could preserve the union’s resources.

    Strikers are not eligible for unemployment benefits, but workers on temporary layoff can receive the benefits, which differ by state but would be less than the union’s $500 strike pay. There also are legal questions in different states about qualifying for unemployment.

    An official with Ford told reporters Thursday that under state law, workers in Michigan and Ohio were not eligible to receive unemployment benefits if they were laid off due to lack of parts at their plant caused by a strike. There are some other states, such as Kentucky and Tennessee, where they would be able to receive unemployment benefits, according to the officials.

    But they said none of the Ford UAW members would be eligible for so-called “sub-pay,” which they typically receive during temporary layoffs. Sub pay is far more lucrative, covering most of the gap between unemployment benefits, typically less than $300 a week, and normal company pay, which can be close to $1,300 a week.

    GM CEO Mary Barra sent a letter to employees Thursday saying the company’s latest offer now includes a 20% raise, with an immediate 10% pay hike. The lower paid temporary employees would get $20 an hour, which represents a 20% raise from the current $16.67 an hour they receive. She called the offer “historic.”

    “We are working with urgency and have proposed yet another increasingly strong offer with the goal of reaching an agreement tonight. Remember: we had a strike in 2019 and nobody won,” she said in the letter.

    Farley told CNN the offer from Ford of a 20% raise over the life of the contract is the most lucrative offer the company has made to the union in the 80 years it has been there. But he said meeting the union’s demands of close to a 40% raise, along with a four-day work week and other benefit improvements, would have been unaffordable.

    Farley blamed the union for the lack of progress in negotiations. But the union has blamed the companies for waiting until the end of August or early September to make their first counteroffers.

    The union came up with the 40% raise request based on the increase in the pay of CEOs at the three automakers over the last four years. Ford CEO pay rose 21%, from $17 million for Farley’s predecessor Jim Hackett in 2019, to $21 million for Farley last year. (Farley is the lowest compensated of the three CEOs.)

    Asked why the union workers shouldn’t get the same increases, Farley responded, “We’re really open to huge increases.” As to the 40% increases for CEOs, Farley responded, “I wasn’t CEO four years ago, but we have put on the table huge increases, double digit increases.”

    Ford has not had a strike since 1978; it has more UAW workers than the other two automakers.

    President Joe Biden spoke with Fain and leaders of the major auto companies “to discuss the status of ongoing negotiations,” the White House said Thursday.

    The White House declined to say Wednesday that Biden would support UAW workers if they chose to strike.

    “I’m gonna leave it at, [Biden] believes the auto workers deserve a contract that sustains middle class jobs and wants the parties to stay at the table, to work round the clock to get a win-win agreement,” Council of Economic Advisors Chair Jared Bernstein told reporters during Wednesday’s White House press briefing.

    Biden became directly involved in 11th hour negotiations a year ago to stop engineers and conductors at the nation’s major freight railroad from going on strike and was credited by both sides with a deal being reached at that time. But Biden and Congress had power under a different labor law to keep workers on the job by imposing a contract, a power he used later in the year when rank-and-file rail workers rejected the deal he brokered and again threatened to strike

    The autoworkers fall under a different labor law, one that leaves Biden with no power to stop a walkout. And he has limited influence with the UAW, which has been critical of his push to have the industry convert to electric vehicles, a move that could cost members jobs in the long run.

    In a statement midday Thursday, GM said it remains in “good faith negotiations” with the UAW but cautioned that a strike would be disruptive to its business.

    “Any disruption would negatively impact our employees and customers, and would have an immediate ripple effect across our communities,” a company spokesperson said.

    One sticking point in negotiations is that wages are only part of the gap between the two sides. In some ways it might be the least difficult problem to solve, said Patrick Anderson, CEO of Anderson Economic Group, a Michigan research firm.

    “The difference between the automakers and the unions on wages is a gap that could be closed,” said Anderson. “The differences involving non-wage demands are a gulf, not a gap.”

    The union is attempting to reverse deep concessions that go back as far as 2007. At the time, years of losses had left Ford nearly out of cash, and GM and Chrysler were on their way to bankruptcy and federal bailouts.

    The number one concession the union wants to end is a lower tier of wages and benefits for workers hired since 2007. While top pay for those newer hires, who today make up a majority of membership, is the same as the $32.32 paid to more senior members, it takes many more years to reach that level.

    The union also wants to restore traditional pension plans for those hired since 2007, as the more senior workers now receive, as well as the same retiree health care coverage. And to protect members from rising prices, it wants a return of the cost-of-living adjustments to pay that all employees lost in 2007.

    Even Fain calls those demands “ambitious,” but he said they’re driven by record or near record profits at the automakers.

    Pandemic supply chain disruptions and shortages of some parts, particularly computer chips, have led to record car prices. The average purchase price of a new car in August was nearly $48,000, according to Edmunds. That’s up 30% from August of 2019.

    Automakers have used their limited supply of parts to build vehicles loaded with options to maximize profits. That’s produced a strong bottom line. General Motors reported record profits in 2022, and Ford posted near-record profits as well. Stellantis, a European-based automaker formed in 2021 by the merger of Fiat Chrysler and PSA Group, had 2022 profits up 26% compared to its first year of combined operations.

    A strike that halts production nationwide could also be costly for the automakers at a time of strong demand by car buyers and strong competition from nonunion automakers such as Tesla and foreign brands. GM said it lost $2.9 billion during its 2019 strike.

    While the automakers have done their best to build up inventory at dealerships, car buyers could have trouble finding some of the models they want and could have to wait longer for their choice of colors and options. And limited supplies could put upward pressure on some vehicle prices.

    – CNN’s DJ Judd contributed to this report

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  • Watchdog agency increases its pandemic unemployment benefits fraud estimate to as much as $135 billion | CNN Politics

    Watchdog agency increases its pandemic unemployment benefits fraud estimate to as much as $135 billion | CNN Politics

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    Washington
    CNN
     — 

    As much as $135 billion in fraudulent Covid-19 pandemic unemployment insurance claims were likely paid out, according to a report released Tuesday by the US Government Accountability Office.

    The whopping figure, which equates to as much as 15% of total unemployment benefits distributed during the pandemic, is a notable bump up from the $60 billion the watchdog agency had previously estimated in January.

    In comments on a draft of the GAO report, the Department of Labor said the office is likely overestimating the actual amount of fraud. However, the department’s Office of Inspector General in February said in testimony before a House committee that at least $191 billion in pandemic unemployment benefits payments could have been improper, with “a significant portion attributable to fraud.”

    The GAO pushed back on the department’s assertions in its report and stood by the methodology used.

    “Given that not all potential fraud will be investigated and adjudicated through judicial or other systems, the full extent of UI fraud during the pandemic will likely never be known with certainty,” the GAO report said. “Therefore, it is appropriate to rely on estimates, such as ours, to make more comprehensive conclusions about the extent of fraud in the UI programs during the pandemic.”

    The findings released on Tuesday shed light on the numerous schemes to steal money from a range of hastily implemented pandemic relief programs, which have drawn the attention of congressional lawmakers and prompted legislative action. Last year, President Joe Biden signed two bipartisan bills into law aimed at holding individuals who commit fraud under pandemic relief programs accountable.

    “My message to those cheats out there is this: You can’t hide. We’re going to find you. We’re going to make you pay back what you stole and hold you accountable under the law,” the president said at the time.

    The House of Representatives also passed a bill in May that would help recover fraudulent unemployment insurance benefits paid out during the pandemic. The bill, however, has not been brought to a vote in the Senate.

    Fraud within the nation’s unemployment system skyrocketed after Congress enacted a historic expansion of the program in March 2020. State unemployment agencies were overwhelmed with record numbers of claims and relaxed some requirements in an effort to get the money out the door quickly to those who had lost their jobs.

    But the enhanced payments and lax controls quickly attracted criminals from around the world. States and Congress subsequently tightened their verification requirements in an attempt to combat the fraud, particularly in the Pandemic Unemployment Assistance program, which allowed freelancers, gig workers and others to collect benefits for the first time.

    More than $888 billion in federal and state unemployment benefits were paid from the end of March 2020 through early September 2021, when all the pandemic enhancements ended nationwide, according to the Labor Department Office of Inspector General.

    The GAO report said the “unprecedented demand for benefits and need to quickly implement the new programs increased the risk of fraud.”

    Other pandemic relief programs were also the target of criminals. The GAO in May flagged 3.7 million recipients of Small Business Administration funds as having “warning signs consistent with potential fraud.” The SBA doled out $1 trillion to help small businesses during the pandemic through measures including the Paycheck Protection Program and Covid-19 Economic Injury Disaster Loan program. More than 10 million small businesses were assisted.

    Some of the fraudulent claims have been recouped. States identified $5.3 billion in fraudulent unemployment benefits overpayments and has recovered $1.2 billion, according to the GAO.

    A Justice Department spokesperson told CNN on Tuesday that as of August 30, the department has charged more than 3,000 people for pandemic related fraud.

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  • Here’s what’s in the $1.7 trillion federal spending bill | CNN Politics

    Here’s what’s in the $1.7 trillion federal spending bill | CNN Politics

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    CNN
     — 

    Senate leaders unveiled a $1.7 trillion year-long federal government funding bill early Tuesday morning.

    The legislation includes $772.5 billion for non-defense discretionary programs and $858 billion in defense funding, according to a bill summary from Democratic Sen. Patrick Leahy, chair of the Senate Committee on Appropriations.

    The sweeping package includes roughly $45 billion in emergency assistance to Ukraine and NATO allies, boosts in spending for disaster aid, college access, child care, mental health and food assistance, more support for the military and veterans and additional funds for the US Capitol Police, according to Leahy’s summary and one from Sen. Richard Shelby of Alabama, the top Republican on the Senate Appropriations Committee.

    However, the bill, which runs more than 4,000 pages, left out several measures that some lawmakers had fought to include. An expansion of the child tax credit, as well as multiple other corporate and individual tax breaks, did not make it into the final bill. Neither did legislation to allow cannabis companies to bank their cash reserves – known as the Safe Banking Act. Also, there was also no final resolution on where the new FBI headquarters will be located.

    The spending bill is the product of lengthy negotiations between top congressional Democrats and Republicans. Lawmakers reached a “bipartisan, bicameral framework” last week following a dispute between the two parties over how much money should be spent on non-defense domestic priorities. They worked through the weekend to craft the legislation.

    The Senate is expected to vote first to approve the deal this week and then send it to the House for approval before government funding runs out on December 23. The bill would keep the government operating through September, the end of the fiscal year.

    Congress originally passed a continuing resolution on September 30 to temporarily fund the government in fiscal year 2023, which began October 1.

    More aid for Ukraine: The spending bill would provide roughly $45 billion to help support Ukraine’s efforts to defend itself against Russia’s attack.

    About $9 billion of the funding would go to Ukraine’s military to pay for a variety of things including training, weapons, logistics support and salaries. Nearly $12 billion would be used to replenish US stocks of equipment sent to Ukraine through presidential drawdown authority.

    Also, it would provide $13 billion for economic support to the Ukrainian government.

    Other funds would address humanitarian and infrastructure needs, as well as support European Command operations.

    Emergency disaster assistance: The bill would appropriate more than $38 billion in emergency funding to help Americans in the west and southeast affected by recent natural disasters, including tornadoes, hurricanes, flooding and wildfires. It would aid farmers, provide economic development assistance for communities, repair and reconstruct federal facilities and direct money to the Federal Emergency Management Agency’s Disaster Relief Fund, among other initiatives.

    Overhaul of the electoral vote counting law: A provision in the legislation aims at making it harder to overturn a certified presidential election, in a direct response to the January 6 attack on the US Capitol.

    The changes would overhaul the 1887 Electoral Count Act, which then-President Donald Trump tried to use to overturn the 2020 election.

    The legislation would clarify the vice president’s role while overseeing the certification of the electoral result to be completely ceremonial. It also would create a set of stipulations designed to make it harder for there to be any confusion over the accurate slate of electors from each state.

    Higher maximum Pell grant awards: The bill would increase the maximum Pell grant award by $500 to $7,395 for the coming school year. This would be the largest boost since the 2009-2010 school year. About 7 million students, many from lower-income families, receive Pell grants every year to help them afford college.

    Increased support for the military and veterans: The package would fund a 4.6% pay raise for troops and a 22.4% increase in support for Veteran Administration medical care, which provides health services for 7.3 million veterans.

    It would include nearly $53 billion to address higher inflation and $2.7 billion – a 25% increase – to support critical services and housing assistance for veterans and their families.

    The bill also would allocate $5 billion for the Cost of War Toxic Exposures Fund, which provides additional funding to implement the landmark PACT Act that expands eligibility for health care services and benefits to veterans with conditions related to toxic exposure during their service.

    Beefing up nutrition assistance: The legislation would establish a permanent nationwide Summer EBT program, starting in the summer of 2024, according to Share Our Strength, an anti-hunger advocacy group. It would provide families whose children are eligible for free or reduced-price school meal with a $40 grocery benefit per child per month, indexed to inflation.

    It would also change the rules governing summer meals programs in rural areas. Children would be able to take home or receive delivery of up to 10 days worth of meals, rather than have to consume the food at a specific site and time.

    The bill would also help families who have had their food stamp benefits stolen since October 1 through what’s known as “SNAP skimming.” It would provide them with retroactive federal reimbursement of the funds, which criminals steal by attaching devices to point-of-sale machines or PIN pads to get card numbers and other information from electronic benefits transfer cards.

    More money for child care: The legislation would provide $8 billion for the Child Care and Development Block Grant, a 30% increase in funding. The grant gives financial assistance to low-income families to afford child care.

    Also, Head Start would receive nearly $12 billion, an 8.6% boost. The program helps young children from low-income families prepare for school.

    Help to pay utility bills: The bill would provide $5 billion for the Low Income Home Energy Assistance Program. Combined with the $1 billion contained in the earlier continuing resolution, this would be the largest regular appropriation for the program, according to the National Energy Assistance Directors Association. Home heating and cooling costs – and the applications for federal aid in paying the bills – have soared this year.

    Enhance retirement savings: The bill contains new retirement rules that could make it easier for Americans to accumulate retirement savings – and less costly to withdraw them. Among other things, the provisions would allow penalty-free withdrawals for some emergency expenses, let employers offer matching retirement contributions for a worker’s student loan payments and increase how much older workers may save in employer retirement plans.

    More support for the environment: The package would provide an additional $576 million for the Environmental Protection Agency, bringing its funding up to $10.1 billion. It would increase support for enforcement and compliance, as well as clean air, water and toxic chemical programs, after years of flat funding.

    It also would boost funding for the National Park Service by 6.4%, restoring 500 of the 3,000 staff positions lost over the past decade. This would be intended to help the agency handle substantial increases in visitation.

    Plus, the legislation would provide an additional 14% in funding for wildland firefighting.

    Additional funding for the US Capitol Police: The bill would provide an additional $132 million for the Capitol Police for a total of nearly $735 million. It would allow the department to hire up to 137 sworn officers and 123 support and civilian personnel, bringing the force to a projected level of 2,126 sworn officers and 567 civilians.

    It would also give $2 million to provide off-campus security for lawmakers in response to evolving and growing threats.

    Investments in homelessness prevention and affordable housing: The legislation would provide $3.6 billion for homeless assistance grants, a 13% increase. It would serve more than 1 million people experiencing homelessness.

    The package also would funnel nearly $6.4 billion to the Community Development Block Grant formula program and related local economic and community development projects that benefit low- and moderate income areas and people, an increase of almost $1.6 billion.

    Plus, it would provide $1.5 billion for the HOME Investment Partnerships Program, which would lead to the construction of nearly 10,000 new rental and homebuyer units and maintain the record investment from the last fiscal year.

    Increased health care funding: The package would provide more money for National Institutes of Health, the Centers for Disease Control and Prevention and the Assistant Secretary for Preparedness and Response. The funds are intended to speed the development of new therapies, diagnostics and preventive measures, beef up public health activities and strengthen the nation’s biosecurity by accelerating development of medical countermeasures for pandemic threats and fortifying stockpiles and supply chains for drugs, masks and other supplies.

    More resources for children’s mental health and for substance abuse: The bill would provide more funds to increase access to mental health services for children and schools. It also would invest more money to address the opioid epidemic and substance use disorder.

    Tiktok ban from federal devices: The legislation would ban TikTok, the Chinese-owned short-form video app, from federal government devices.

    Some lawmakers have raised bipartisan concerns that China’s national security laws could force TikTok – or its parent, ByteDance – to hand over the personal data of its US users. Recently, a wave of states led by Republican governors have introduced state-level restrictions on the use of TikTok on government-owned devices.

    Enhanced child tax credit: A coalition of Democratic lawmakers and consumer advocates pushed hard to extend at least one provision of the enhanced child tax credit, which was in effect last year thanks to the Democrats’ $1.9 trillion American Rescue Plan. Their priority was to make the credit more refundable so more of the lowest-income families can qualify. Nearly 19 million kids won’t receive the full $2,000 benefit this year because their parents earn too little, according to a Tax Policy Center estimate.

    New cannabis banking rules: Lawmakers considered including a provision in the spending bill that would make it easier for licensed cannabis businesses to accept credit cards – but it was left out of the legislation. Known as the Safe Banking Act, which previously passed the House, the provision would prohibit federal regulators from taking punitive measures against banks for providing services to legitimate cannabis businesses.

    Even though 47 states have legalized some form of marijuana, cannabis remains illegal on the federal level. That means financial institutions providing banking services to cannabis businesses are subject to criminal prosecution – leaving many legal growers and sellers locked out of the banking system.

    FBI headquarters: There was also no final resolution on where the new FBI headquarters will be located, a major point of contention as lawmakers from Maryland – namely House Majority Leader Steny Hoyer – pushed to bring the law enforcement agency into their state. In a deal worked through by Senate Majority Leader Chuck Schumer, the General Services Administration would be required to conduct “separate and detailed consultations” with Maryland and Virginia representatives about potential sites in each of the states, according to a Senate Democratic aide.

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