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Saturday, October 29, 2022

REST IN POWER

Mike Davis’s Many Contributions to Building a Better World Will Live On

No leftist writer can compare to Mike Davis — not in clarity, breadth, generosity, or ironclad commitment to the working class. Davis has died, but his ideas will continue to find life in generations of leftist activists and thinkers to come.


Madison Square Garden's interior filled with thousands of striking garment workers in 1958. A banner reads "On with the strike — on to victory!" Mike Davis remained resolute in his belief in labor's collective power. (Bettmann Archive / Getty Images)

BY  BARRY EIDLIN
10.29.2022
 Jacobin 

Our mentors are dying.


At one level, this is a banal statement — an inevitable consequence of the forward march of time. But for those of us on the Left, there are historical and political factors that give it additional weight.

One consequence of the past several decades of defeat and demoralization for the Left has been a lack of generational replacement of leftist leadership and mentorship. Not only have there been fewer people available to serve as potential new leaders and mentors, but those of us who came of age politically between the 1980s and 2000s have had fewer and smaller movements upon which we could cut our teeth and develop as leaders and mentors ourselves.

As a result, it has fallen to veterans of the movements of the 1960s and ’70s to carry much of the weight of keeping the Left alive through difficult decades. That means that, as these veterans inevitably pass from the stage, the loss is that much more painful, their absence that much more deeply felt.

While we can appreciate this sociological observation about generational replacement at an intellectual level, it doesn’t change the fact that each individual death still feels like a gut punch. Knowing the history and sociology does little to soften the blow.

That is certainly the case when speaking of a figure of the caliber of Mike Davis, who died on October 25 at age seventy-six. We all knew this moment was coming after learning that he shifted to palliative care for his cancer a few months ago. But that didn’t prepare us for living in a world deprived of his prolific and penetrating insights.

Reading the tributes and remembrances that have flowed in over the past few days, it is hard not to be awed by the scale and scope of his reach. There is of course his immense body of writing, in which he managed to speak with authority, clarity, and insight on a dizzyingly vast array of matters without slipping into dilettantism.

From droughts and pandemics to urban development and resistance to labor history and politics, socialist strategy, and so much more, few others combined his careful research, clear-eyed analysis, political commitment, and eerie clairvoyance, all wrapped in dense yet riveting prose.

It won him a devoted readership across wide swaths of the US and global left, while also commanding respect in some of the halls of academia and the more mainstream public sphere. Few other thinkers occupy such a central place in graduate seminar syllabi and socialist reading groups while also being influential enough to attract the attention of the MacArthur Foundation and the ire of real-estate developers, along with attempts at exposés from the Los Angeles Times, Salon, and the Economist, among others. (The Los Angeles Times, for its part, shifted to more appreciative profiles of Davis later on).

On its own, Davis’s writing would be more than enough to be remembered as a giant of the Left. But he combined this with a lifetime of activism, organizing, and engagement, from his early years organizing with Students for a Democratic Society to participating in wildcat strikes as a truck driver and meatpacker to mentoring new generations of socialists in recent years. He was also generous as an academic mentor, taking the time to read, comment, and inquire about the work of graduate students and junior scholars just finding their way. Again, I am hard pressed to think of others who combined these qualities to the degree that Davis did.

Unfortunately, I cannot add any personal remembrances of Davis to this piece, as I never had the good fortune of meeting him myself, though I have long been in his orbit. I was first exposed to him as an undergraduate at Oberlin College, where politics professor Chris Howell kept a copy of Prisoners of the American Dream on reserve at the library for his students. Later, when I went to work for Teamsters for a Democratic Union (TDU), Davis’s writings on labor and the Left became a critical part of my political education, which I read alongside those of Kim Moody, Mike Parker, Jane Slaughter, Bob Brenner, and others.

When I made the transition from labor organizer to labor scholar, Davis stayed with me. I assigned his work in my social movements class and my seminar on “Capitalism, Socialism, and Democracy.” This ensured that I would have the privilege of revisiting and reengaging with his writing year after year. I never ceased to be amazed at the new insights I gleaned from each additional rereading and new ideas that would come to me after sitting with his work.

It reinforced for me not just how insightful Davis was as a thinker but how generative he was. He provided a jumping-off point for countless other scholars to take our own deep dives — even if we might never get as deep as he did.

Indeed, as I posted on social media back in 2018, as I was preparing to teach “Why the US Working Class is Different” in my seminar, “I’m amazed at how [Davis] can casually toss off ideas for about five dissertations in a single paragraph.”



Many of my students had similar reactions to his work, consistently mentioning it as a highlight of the course. Likewise, for me, teaching his work has been a highlight of my life as a professor.

I did come very close to meeting Davis this past September. I had wanted to interview him about his time doing rank-and-file organizing as a Teamster and meatpacker in the 1970s for a book I’m working on with Jacobin editor Micah Uetricht about the Left’s “turn to industry” in that period, when members of socialist organizations took jobs in factories for organizing purposes. It’s a part of Davis’s life that was often mentioned in various profiles but rarely explored.

After I learned of his shift to palliative care, I figured that I had missed my opportunity, but seeing several profiles of him based on lengthy interviews published in the following months made me think that I might still have a chance. So I emailed him and was surprised to receive a reply almost immediately. He was happy to talk but could likely only handle an hour-long interview. We made plans for me to travel down to San Diego the following week, with the caveat that I should check with him the day before.

As scheduled, I wrote him the day before and received a reply: “I had a visit from my end-of-life physician this morning and she bluntly told me cancel all interviews or visits from friends. Apologies.”

While we had to cancel the visit, I was at least able to share with him how much his work influenced my own, how much my students get from reading him, and to thank him for his contributions toward building a better world.

Those contributions may now have come to an end, but they will live on in every student and organizer whose world will make a little more sense, and whose path to changing it will be a little clearer, thanks to Mike Davis.

Barry Eidlin is an associate professor of sociology at McGill University and the author of Labor and the Class Idea in the United States and Canada.





Wednesday, October 26, 2022

BLACK FARMERS CHEATED, AGAIN
U$ Federal government has given $800 million to keep indebted farmers afloat

Jared Strong, Iowa Capital Dispatch
October 19, 2022

U.S. Secretary of Agriculture Tom Vilsack. (Jared Strong / Iowa Capital Dispatch)

More than 13,000 farmers have benefited from nearly $800 million in federal debt relief, U.S. Secretary of Agriculture Tom Vilsack said Tuesday.

The assistance came from a new federal initiative to erase farmers’ loan delinquencies to the U.S. Department of Agriculture and private lenders or to resolve their remaining debts after foreclosure.

Going forward, the USDA is expected to give hundreds of millions of dollars of relief to farmers who are facing bankruptcy or foreclosure and to those who are at risk of missing payments on their loans.

“The star of the show here is the farmer,” Vilsack told reporters. “The person that really matters is the farmer, and keeping that farmer, him or her, on the land so that he or she can take care of their family and their community.”

The USDA’s Farm Service Agency gives direct loans to farmers and guarantees loans from banks, credit unions and others to farmers for up to 95% of their value.

The government’s farm loan obligations for the 2022 fiscal year, which ended Sept. 30, totaled about $5.8 billion, according to USDA records. States with the highest obligations included Iowa at about $484 million, Arkansas at $424 million, Oklahoma at $366 million and Nebraska at $341 million. Virginia’s overall obligations totaled over $67.5 million.

Of those with delinquent direct loans, the average farmer who has failed to make regular payments for at least two months received about $52,000 under a “distressed borrowers” initiative, which is funded with more than $3 billion by the Inflation Reduction Act. That eliminated their delinquencies.

For those with government-backed loans from private entities, the average benefit was about $172,000.

The total number of farmers in the two categories was about 11,000.

For those with direct loans who went bankrupt and still owed money — about 2,100 borrowers — the average benefit was about $101,000. Vilsack said those bankruptcies happened at least a year ago but did not say how long ago they might have occurred.

States with farmers who received the most relief included Oklahoma and Texas, Vilsack said, whereas farmers in the northeastern states of Connecticut, Delaware and Rhode Island were among those who received the least. Those northeastern states had a combined total of federal farm loan obligations of just $11 million during the 2022 fiscal year, USDA records show.

“Virtually every state in the country has a borrower or several borrowers or groups of borrowers that are impacted by this,” Vilsack said. “I think you’re probably talking about some very, very small operators, and you’re probably talking about a few that would be considered to be mid- or large-sized operators. So it’s across the board.”

The debt relief initiative is the subject of a new lawsuit by non-white farmers who claim that the government improperly reneged on its plans to forgive loan debts of “socially disadvantaged” farmers, which was part of the American Rescue Plan Act of 2021. That initial version of the plan was challenged by lawsuits that claimed it was discriminatory.


The Inflation Reduction Act of 2022 amended the debt relief program to eliminate its prescribed goal to help Asian, Black, Hispanic and Native American farmers. Vilsack described the farmers who have been aided by the amended initiative as those who “couldn’t get credit anywhere else.”


On Sept. 21, Virginia Rep. Bobby Scott, D-Newport News, sent a letter to Vilsack urging the federal government “to provide swift and equitable relief for borrowers with at-risk agricultural operations” and “take immediate action to ensure that producers with farm loans guaranteed by the USDA are protected from foreclosure.”

The letter was signed by 11 other members of Congress including Virginia Rep. Donald McEachin, D-Richmond.

The USDA suspended its foreclosures of direct loans in January 2021 because of the coronavirus pandemic, which was especially tough on livestock producers. Meatpacker closures because of the virus abruptly choked demand for the animals and led in some cases to mass euthanasia. The supply costs for farmers have also soared, notably for fertilizers.

This story originally appeared in the Iowa Capital Dispatch, a sister publication of The Virginia Mercury within the States Newsroom network


Virginia Mercury is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Sarah Vogelsong for questions: info@virginiamercury.com. Follow Virginia Mercury on Facebook and Twitter.

Saturday, July 16, 2022

CRIMINAL CAPITALI$M
EXPLAINER: Twitter, Musk and the Delaware Chancery Court


Thu, July 14, 2022 



DOVER, Del. (AP) — Twitter Inc.’s lawsuit to force billionaire Elon Musk to make good on his promise to buy the social media giant will be resolved in a small but powerful Delaware court that specializes in high-stakes business disputes.

Twitter has sued Musk in Delaware’s Court of Chancery in an effort to force him to complete a $44 billion takeover deal reached in April.

WHAT IS THE LAWSUIT ABOUT?

Musk, the world’s richest man, pledged to pay $54.20 a share for Twitter but now wants to back out of the agreement. He claims the company has failed to provide adequate information about the number of fake, or “spam bot,” Twitter accounts, and that it has breached its obligations under the deal by firing top managers and laying off a significant number of employees.

Twitter argues that Musk, CEO of electric car maker and solar energy company Tesla Inc., has operated in bad faith and is deliberately trying to tank the deal because market conditions have deteriorated and the acquisition no longer serves his interests. According to the lawsuit, the value of Musk’s shares in Tesla, which he was to draw upon to help finance the acquisition, has declined by more than $100 billion since November.

Either Musk or Twitter would be entitled to a $1 billion breakup fee if the other party is found responsible for the agreement failing. Twitter wants more, however, and is seeking a court order directing Musk to follow through with the deal.

WHEN DOES THE TRIAL START?

Twitter lawyers are asking the court to expedite the case. They have proposed a four-day trial starting Sept. 19.

WHAT IS THE COURT OF CHANCERY?

The Court of Chancery, established in 1792, traces its roots to the High Court of Chancery of Great Britain, which in turn evolved from an earlier institution in feudal England known as the King’s Chapel. The court, overseen by the lord chancellor as “keeper of the king’s conscience,” served as an alternative to the more rigid and inefficient common law courts. It held the power to offer remedies such as injunctions, estate administration, and, notably, “specific performance,” which can force a party to complete a transaction against its will.

The 230-year-old Court of Chancery typically handles civil cases where a plaintiff is seeking non-monetary damages. Such cases can include disputes over property boundaries and land purchases, guardianship appointments, and estates, trusts and wills.

More often than not, they involve business disputes pitting companies against disgruntled shareholders, or parties to failed mergers and acquisitions against one another.

HOW DOES THE COURT OF CHANCERY WORK TODAY?

The seven judges on the Delaware Court of Chancery exercise these powers today, making it a key venue for high-stakes business disputes. Delaware features a well-established and carefully nurtured body of corporate case law dating to 1899 and is the corporate home to more than 1 million business entities, including more than 60% of Fortune 500 companies. Many merger agreements, in fact, specify that any disputes will be heard by a Delaware Chancery Court judge.

“It’s not that they are necessarily more brilliant than judges in other states, they just have a lot of exposure to this stuff and are pretty sophisticated about it,” said Lawrence Hamermesh, executive director of the Institute for Law & Economics at the University of Pennsylvania.

HAS MUSK BEEN IN THIS COURT BEFORE?

Musk is no stranger to the Court of Chancery. Earlier this year, he emerged victorious in a shareholder lawsuit accusing him of a conflict of interest in Tesla’s 2016 acquisition of SolarCity, a struggling solar panel company in which Musk was the largest shareholder and also served as board chairman.

Hamermesh, a former professor of corporate and business law at Widener University Delaware Law School, noted that the specific performance sought by Twitter is a “pretty rare” remedy, and that it’s uncertain whether the court will force Musk to consummate the deal.

“There are a lot OF? instances where a judge could say, ‘Buyer, you’re in breach,’ but the remedy is a termination fee,” he said. “Given what I have seen so far, my gut instinct is that Twitter’s got the upper hand legally. Whether they’ll get the full specific performance or just the breakup fee is a little harder to say.”

HOW HAS THE COURT ACTED IN THE PAST?

If the court does force Musk to close the deal, it would not be without precedent.

In 2001, poultry giant Tyson Foods Inc. was ordered to complete its $3.2 billion acquisition of meatpacker IBP Inc. when a judge granted IBP’s claim for specific performance.

More recently, a Chancery judge last year ordered private equity firm Kohlberg & Co. to close its $550 million purchase of DecoPac Holdings Inc., which sells cake decorations and technology to supermarkets for in-store bakeries. Vice Chancellor Kathaleen St. Jude McCormick said Kohlberg had failed to demonstrate that a decline in DecoPac sales amid the coronavirus pandemic constituted a “material adverse effect” allowing the buyers to walk away. McCormick, who was sworn in as Chancellor, or head judge of the court, just one week after her ruling, described it as “a victory for deal certainty.”

On the flip side, Vice Chancellor J. Travis Laster declared in 2018 that a pharmaceutical company targeted for a merger had experienced such a decline in its financial condition that it amounted to a material adverse effect, allowing the proposed buyer to terminate the deal. The ruling marked the first time the court found the existence of a material adverse effect, or MAE, in a business transaction. It allowed German health care company Fresenius Kabi AG to walk away from its planned $4.3 billion acquisition of U.S. generic drugmaker Akorn Inc.

Randall Chase, The Associated Press

Wednesday, July 13, 2022

Brazil's BRF gets nod to export pork into Canada


Logos of Brazilian meatpacker BRF SA are seen in the headquarters in Curitiba

Nayara Figueiredo
Wed, July 13, 2022

SAO PAULO (Reuters) - Brazilian food company BRF received approval to ship pork to Canada, according to a statement sent to Reuters on Wednesday, as Canada opens up for more Brazilian meat imports.

The approved unit, located in Santa Catarina state, will be able to export fresh and frozen pork cuts.

It is the second Canadian authorization granted to BRF this year. In May, a Parana facility unit was cleared to export cooked poultry into Canada.

"This new certification is a milestone, as it symbolizes the opening of an important market for a new type of product, creating the possibility that new authorizations will materialize soon, and positively impact our export volume," Leonardo Dall'Orto, vice president of international market and planning, was quoted as saying in the statement.

Canada approved Brazilian meat imports in March. Since then, seven factories have received the greenlight to sell products, with BRF's being the eighth, according to meat industry group ABPA.

Seara Alimentos, controlled by the world's biggest meat company, JBS, has had two units approved by Canada so far.

ABPA said although Canada is the third largest global exporter of pork, the country is also a relevant buyer in the international market.

On average, Canada imports 250,000 tonnes of pork annually, ABPA said.

(Reporting by Nayara Figueiredo; Writing by Ana Mano; Editing by Leslie Adler)

Wednesday, May 04, 2022

PROFITEERING = INFLATION
Steak Prices Will Keep Rising, Major U.S. Meatpacker Says

Tatiana Freitas
Wed, May 4, 2022,


(Bloomberg) -- Beef will be getting even more expensive at U.S.
 grocery stores in the months ahead, according to one of the country’s biggest meatpackers.

National Beef Co., controlled by the Brazilian giant Marfrig Global Foods, sees relatively stable margins in the next two quarters, according to Tim Klein, who heads Marfrig’s U.S. operations. That means even though their costs to buy cattle are increasing, the company will ultimately be able to pass that on to consumers in the form of pricier steaks and burgers.

“Cattle prices will go up, and beef prices will go up with them,” Klein said during an earnings interview.

The cost of meat has been a focus as consumers grapple with the fastest inflation in four decades. The average price for ground beef in America grocery stores has jumped 18% from a year ago, according to the government data. American shoppers may adapt to inflation by switching to less expensive cuts, according to Klein.

Marfrig beat analysts’ estimates for earnings before items and revenue, posting a record for a first quarter. U.S. operations drove the gains, while South America’s unit started a recovery amid booming Chinese demand and improving cattle supply in Brazil, according to Miguel Gularte, who heads operations in the region. Marfrig’s slaughterings in Brazil rose 20% in the quarter, the double compared with the industry average, Gularte said.

Net income fell 61% from a year ago due to a non-cash loss on the mark-to-market of its stake in the food giant BRF SA. Starting next quarter, Marfrig will add BRF earnings to its balance sheet, according to Chief Financial Officer Tang David. Last month, Marfrig’s founder, Marcos Molina dos Santos, was elected BRF chairman.

Monday, January 03, 2022

Biden Launches Plan to Fight Meatpacker Giants on Inflation

Mike Dorning
Mon, January 3, 2022

Biden Launches Plan to Fight Meatpacker Giants on Inflation

(Bloomberg) -- President Joe Biden promised to “fight for fairer prices” for farmers and consumers Monday as he announced plans to combat the market power of the giant conglomerates that dominate meat and poultry processing.

“Capitalism without competition isn’t capitalism, it’s exploitation,”
 
Biden said. “That’s what we’re seeing in meat and poultry.”

Biden joined Agriculture Secretary Tom Vilsack and Attorney General Merrick Garland to meet virtually with ranchers and farmers to hear complaints about consolidation in the industry, ratcheting up a White House campaign blaming anti-competitive practices in the industry for contributing to surging food inflation.

Biden launched a portal that will allow producers to report unfair trade practices by meatpackers. He also highlighted initiatives the administration is taking to counter meatpackers’ economic power, including $1 billion in federal aid to assist expansion of independent processors and new competition regulations under consideration.

The announcement focuses fresh attention on Biden’s fight with the meat-processing industry and helps cast him as a president willing to take on powerful business interests over consumer prices. Many Democrats are concerned that months of negotiations over Biden’s economic plan have distanced him too much from the most pressing kitchen-table problems facing Americans.

Inflation has swiftly moved to the top of public concerns as the annual rise in consumer prices hit its highest level in almost 40 years. Meat prices, which in November were up 16% from a year earlier, have been the biggest contributor to grocery inflation. Meatpacking industry representatives blame soaring prices on labor shortages, rising fuel prices and supply-chain constraints.

Shares for meat companies were mixed. Tyson Foods Inc., the biggest U.S. meat company by sales, climbed 0.7%, reversing earlier losses. JBS SA, the world’s biggest meat supplier, fell 4%.

Scott Blubaugh, president of the Oklahoma Farmers Union, praised the initiative. “Not since Teddy Roosevelt have we had a president that’s willing to take on this big issue,” he said.

But others were skeptical it would do enough. “The Administration has not announced that it will take decisive enforcement action to protect America’s cattle producers from the harms they’ve been experiencing for the past seven years, and we remain disappointed with that omission,” Bill Bullard, chief executive officer of R-CALF USA, a group that represents independent cattle producers.

Biden didn’t answer a question on whether he would seek to break up large meat-processing companies. His efforts to inject more competition in the industry run counter to decades of consolidation since the late 1970s as the industry shifted to larger plants to cut costs and courts adopted a more permissive interpretation of antitrust law.

Companies including JBS have said that a shortage of workers is affecting operations in every developed nation, limiting production increases and raising costs.

“Labor remains the biggest challenge,” Sarah Little, a spokeswoman for the North American Meat Institute, a trade group, said in a statement. “Our members of all sizes cannot operate at capacity because they struggle to employ a long-term stable workforce. New capacity and expanded capacity created by the government will have the same problem.”

Mike Brown, president of the National Chicken Council, a poultry trade group, said levels of concentration in the sector haven’t changed much over the past 20 years.

“It’s time for the White House to stop playing chicken with our food system and stop using the meat industry as a scapegoat for the significant challenges facing our economy,” Brown said in an emailed statement.

Biden singled out the meat and poultry processing industries for scrutiny in a July executive order on promoting competition across the economy. His top economic adviser later criticized meatpackers for “pandemic profiteering.” The U.S. Agriculture Department also announced plans in June to consider three new sets of regulations on unfair trade practices in livestock and poultry markets, with officials anticipating the proposal of new rules early this year.

The president has placed critics of corporate consolidation in key positions across his administration, including Lina Khan as chair of the Federal Trade Commission and Jonathan Kanter as assistant attorney general for antitrust.

Four large meatpacking companies control 85% of U.S. beef processing capacity, according to data released by the White House. Other meat sectors are also highly concentrated, with four companies controlling 70% of the pork market and 54% of the poultry market, according to the White House.

A fact sheet the White House distributed to reporters asserts that as a result of that concentration, most livestock producers “now have little or no choice of buyer for their product and little leverage to negotiate.” Tyson Foods Inc. reported record profits on its beef processing in quarterly earnings released in November.


In November, ranchers received 36.7 cents for every dollar consumers spent on beef at the grocery store, down from 51.5 cents in 2015, according to the Agriculture Department. Fifty years ago, their share was more than 60 cents, according to the White House.

“This is a decades-long trend that we are seeing,” said Bharat Ramamurti, Deputy Director of the National Economic Council, in an interview with Bloomberg Television. “The result, based on the economic literature, is higher prices for folks, fewer options for workers, which means that there’s downward pressure on wages. It also means that there’s less innovation and productivity.”

The aid for independent meat and poultry processors, which will come from Covid relief funds, includes $375 million for gap financing grants and $100 million for guarantees of loans made through private banks, according to the fact sheet.

Ted Schroeder, a Kansas State University agricultural economics professor who specializes in livestock markets, said it’s difficult to forecast the overall impact of Biden’s efforts, but expressed doubt the federal aid for independent processors will alter the market much.

Meatpacking is a cyclical business and processors may soon be squeezed again as droughts and higher feed grain prices drive up cattle prices, he said.

“How can smaller, higher cost, highly leveraged new plants hope to survive through such a market environment in the next few years? I am concerned many will not,” Schroeder said.

Biden to meet with farmers as he seeks to cut meat prices

President Joe Biden waves as he leaves St. Ann Roman Catholic Church after attending Mass in Wilmington, Del., Saturday, Jan. 1, 2022. (AP Photo/Carolyn Kaster)

By JOSH BOAK
AP

President Joe Biden will meet virtually with independent farmers and ranchers to discuss initiatives to reduce food prices by increasing competition within the meat industry, part of a broader effort to show the administration is trying to combat inflation.

The White House event occurs Monday afternoon as higher-than-expected inflation has thwarted Biden’s agenda. Consumer prices in November rose 6.8% over the prior 12 months — a 39-year high. Inflation has hurt Biden’s public approval, become fodder for Republican attacks and prompted Sen. Joe Manchin, D-W.Va., to cite higher prices as a reason to sideline the Democratic president’s tax, social and economic programs.

Biden is building off a July executive order that directed the Agriculture Department to more aggressively look at possible violations of the 1921 Packers and Stockyards Act, which was designed to ensure fair competition and protect consumers. Meat prices have climbed 16% from a year ago, with beef prices up 20.9%.

The administration is targeting meat processing plants, which can shape the prices paid to farmers and charged to consumers. The White House issued a fact sheet saying that the top four companies control 85% of the beef market. In poultry, the biggest four processing firms control 54% of the market. And for pork, the figure is 70% for the four biggest firms

Biden plans to stress the plans to distribute $1 billion from the coronavirus relief package to help independent meat processors expand. He also plans to highlight funding to train workers in the industry and improve conditions, as well as issue new rules for meatpackers and labeling requirements for being designated a “Product of USA.”

The Justice Department and the Agriculture Department will launch a joint effort to make it easier to report anti-competitive actions to the government. The administration will also seek to improve the transparency of the cattle market.

The effort is part of a broader attempt to regain control of America’s economic narrative. Besides inflation, the repeated waves of coronavirus outbreak have dampened people’s opinions about the economy despite strong growth over the past year.

Biden will have an opportunity to highlight the economy’s strengths with the December jobs report being released Friday. Economists surveyed by FactSet expect that the United States added 362,000 jobs last month with the unemployment rate ticking down to 4.1%. Gains of that magnitude would indicate that the U.S. added roughly 6.5 million jobs last year, more than in any other previous year in a reflection of population growth and government spending.

Biden Unveils Plan to Boost Competition in US Meat Industry
January 03, 2022
Reuters
U.S. President Joe Biden, U.S. Secretary of Agriculture Tom Vilsack and U.S. Attorney General Merrick Garland attend a video conference with farmers, ranchers and meat processors to discuss meat and poultry supply chain issues, on the White House campus, Jan. 3, 2022.

The United States will issue new rules and $1 billion in funding this year to support independent meat processors and ranchers as part of a plan to address a lack of "meaningful competition" in the meat sector, President Joe Biden said on Monday.

The initiative comes amid rising concerns that a handful of big beef, pork and poultry companies have too much control over the American meat market, allowing them to dictate wholesale and retail pricing to profit at the expense of their suppliers and customers.

"Capitalism without competition isn't capitalism. It's exploitation," Biden said. "That's what we're seeing in meat and poultry industries now."

A recent White House analysis found that the top four meatpacker companies – Cargill, Tyson Foods Inc., JBS SA and National Beef Packing Co. – control between 55% and 85% of the market in the hog, cattle and chicken sectors.

U.S. Secretary of Agriculture Tom Vilsack speaks during a video conference on the White House campus in Washington, Jan. 3, 2022.

The Department of Agriculture (USDA) will spend the $1 billion from the American Rescue Plan to expand the independent meat processing sector, including funds for financing grants, guaranteed loans and worker training, said Agriculture Secretary Tom Vilsack, who was speaking at an event with Biden.

USDA will also propose rules this year to strengthen enforcement of the Packers and Stockyards Act and to clarify the meaning of "Product of USA" meat labels, which domestic ranchers have said unfairly advantage multinational companies that raise cattle abroad and only slaughter in the United States.

Attorney General Merrick Garland speaks during a virtual meeting on the White House Campus in Washington, Jan. 3, 2022.

Attorney General Merrick Garland, also speaking at the event, said "too many industries have become too consolidated over time," and that the antitrust division of the Department of Justice has been chronically underfunded.

The Biden administration issued an executive order last year that advocated a whole of government approach to antitrust issues.

A central concern in agriculture has been meat prices, which have risen at a time when the White House is fighting inflation. An analysis in December by the White House economic council found a 120% jump in the gross profits of four top meatpackers since the pandemic began.

Reaction to plan

The meat industry has said the White House analysis was inaccurate and criticized the new plan.

National Chicken Council President Mike Brown called the plan "a solution in search of a problem."

North American Meat Institute spokesperson Sarah Little said staffing plants remains the biggest issue for meatpackers and that the White House plan would not address it.

"Our members of all sizes cannot operate at capacity because they struggle to employ a long-term stable workforce," she said. "New capacity and expanded capacity created by the government will have the same problem."

Eric Deeble, policy director at the National Sustainable Agriculture Coalition, cheered the plan, calling it a "very positive step to ensure farmers and ranchers receive fair prices."

The anticipated rulemaking under the Packers and Stockyards Act "could have a significant impact," said Peter Carstensen, emeritus professor of law at University of Wisconsin-Madison and former antitrust attorney at the Department of Justice. But he noted that investment in independent processing itself would not address market concentration.

Austin Frerick, deputy director of the Thurman Arnold Project at Yale University, an antitrust research center, said the plan does not go far enough to tackle the power of the top meatpackers.

"I do not believe this (plan) will meaningfully change the concentration numbers," he said.

Monday, October 04, 2021

JBS Foods cited after worker dies in Colorado chemical vat

 In this Oct. 12, 2020 file photo, a worker heads into the JBS meatpacking plant in Greeley, Colo. Meatpacker JBS Foods Inc. faces about $59,000 in fines after a worker fell into vat of chemicals used to process animal hides and died at one of the company's meat processing facilities in northern Colorado, officials said. (AP Photo/David Zalubowski, File)


GREELEY, Colo. (AP) — Meatpacker JBS Foods Inc. faces about $59,000 in fines after a worker fell into vat of chemicals used to process animal hides and died at one of the company’s meat processing facilities in northern Colorado, officials said.

The employee at the plant in Greeley fell into the vat March 27 while trying to install a paddlewheel used to churn the chemicals, according to the Occupational Safety and Health Administration. Investigators determined that JBS failed to adequately secure a trolley and hoist that were being used to lift the paddlewheel.

JBS and its Swift Beef Co. operations were cited for eight safety violations related to the accident, The Greeley Tribune reported on Wednesday.

“The employees at this facility deserve better than to fear for their lives and their safety when they come to work,” OSHA Area Director Amanda Kupper in Denver said in a news release.

JBS said in a statement that employee “health and safety is at the core of all our decisions,” and that the company is committed to providing a safe environment at its facilities.

The company has 15 business days from receipt of the citations, sent Monday, to comply with or contest them, or to ask to meet with Kupper.

OSHA fined JBS $15,615 in September 2020 for failing to protect its employees in Greeley from COVID-19. Six workers there died and nearly 300 were infected.

Monday, September 06, 2021

A Salute to All the Workers Who’ve Kept Us Going

They feed us, rescue us, lend a needed touch. They make our lives possible. A photo essay.



Joshua Berson Today | TheTyee.ca

Joshua Berson is a Vancouver-based photographer who partners with a range of clients who share values of social justice, equality and diversity. These include progressive political parties, unions, women’s groups, environmental organizations, and international and community-based non-profits.

Megan Lawrence is an ambulance paramedic in Vancouver. All photos by Joshua Berson.


During this pandemic, people crucial to the core functioning of our society masked-up, sanitized and risked their family’s health to do their jobs. Today The Tyee salutes all the workers who’ve kept us going.

I’ve had a front-row seat, as a photographer who often chronicles union members at their work sites. Presented here are some pictures of the everyday heroes I’ve met, people like barber Guy Quesnel. His grandfather, father and uncle were all barbers. Guy took over the business in 1995 and it’s provided him a solid livelihood and many warm relationships with his customers.

Then, in the early part of the pandemic, all personal service establishments, including barbers, were closed. “I assumed it would only last a couple of weeks,” Guy told me. “Maybe a month.” He thought that it might make for some time off. But as he learned, “It was no holiday!” Until restrictions were lifted, the shop was shut for ten weeks.

Customers who’ve returned to sit for a haircut and bask in the memorabilia of the Vancouver Canucks and the New Westminster Salmonbellies that cover the walls of Elk’s Barber Shop may not be aware that this is now B.C.’s only unionized barbershop. Guy Quesnel has been a member of UFCW Local 1518 for 30 years.

F
rom top: Guy Quesnel is a third-generation barber in New Westminster. Home health-care workers like this one in Prince George forged on despite risks posed by COVID-19. Photos by Joshua Berson.

Labour Day — or International Workers’ Day as it is known as in most countries — is a time for unions to celebrate the achievements of the labour movement. The eight-hour workday, weekends, health and safety rights, gay and trans rights, collective bargaining rights, women’s rights, pensions, benefits… it’s a long and growing list. Unions, which have long served to reduce inequality and create pathways out of poverty, during COVID times have been called upon to support their members in new and crucial ways.

And yet, despite the increasing rates of unionization during the pandemic, and despite a more worker-friendly NDP provincial government, the majority of workers do not have the protection of a union.

From top: Assisting a resident at a single residency occupancy building in Vancouver’s Downtown Eastside. Delivering crew and supplies to container ships in the Port of Vancouver. Disinfecting showers in a Courtenay community centre. 
Photos by Joshua Berson.

Organizing the unorganized is still a major priority for the union movement. As the great Canadian labour activist and politician J.S. Woodsworth famously said in rallying the movement, “What we desire for ourselves, we wish for all.” This rings especially true now as COVID exposes inequities. During this crisis, unionized workers have enjoyed a level of protection and security only dreamed of by their unorganized (non-union) siblings.

“Most of our 700,000 members have solid contract language that has protected their jobs during the pandemic” says Mark Hancock, national president of Canadian Union of Public Employees

.
From top: HEU members at Vancouver General Hospital celebrate winning their 19-year fight to end privatized outsourcing of housekeeping and dietary workers. Members of Unite Here Local 40 protest at Hilton Vancouver Metrotown, where 97 were fired, the rest locked out. ‘The hotel was always like a family to me, so I didn’t see this coming,’ said Sophea Kong, a banquet server let go after 13 years. Photos by Joshua Berson.

Good news: The provincial government is reversing an injustice done by the B.C. Liberal government in 2002 when it tore up contracts with public health workers, driving down their pay by laying off many and forcing them to be rehired into out-sourced jobs. Health Minister Adrian Dix recently announced that some 4,000 such workers with be brought back in-house as public sector employees. Most are women, many are workers of colour. Today, they earn less than they did during the SARS epidemic 18 years ago. “This is a significant act of solidarity with a group of workers who’ve been pushed to the margins by two decades of privatization,” said HEU secretary-business manager Meena Brisard.

Bad news: Hilton Vancouver Metrotown fired 97 Unite Here Local 40 members and locked out the rest. “Women who clean rooms and serve guests are the backbone of the hotel industry. Hotel workers deserve the right to get their jobs back when business returns. Hilton Metrotown is proving itself to be on the wrong side of history,” said Burnaby Mayor Mike Hurley.

In Castlegar, members of the building trades exit an access shaft at the Hugh Keenleyside Dam that spans the Columbia River. Photo by Joshua Berson.

Today, although we celebrate the achievements of the labour movement, we also recognize that each gain has come at a huge cost and with an even larger struggle.

The ongoing push includes insuring support for workers when health measures close operations, or making sure the transition to work at home is fair and just. “The impact of the pandemic was felt across our entire union,” said David Black, president MoveUP, a union with more than 12,000 members at public and private sector companies.

From top: Kyle McNeil, a supervisor at ICBC, has been working from home for most of the pandemic. Tamara Derby drives a forklift at the ICBC Central Estimating Facility in Coquitlam. Canada Line’s Stephen Rayson is among the many workers who have kept transit running during the pandemic. Photos by Joshua Berson.

“Many of our members, sadly, saw their industries shut down for prolonged periods of time. Those who were fortunate to work in essential services had to shift from their familiar work environment to a very new reality, whether that meant new guidelines in the office or to a work-from-home setup,” Back continued.

“Our union worked closely with our members and their employers to accommodate and ensure that workers felt safe in their new environments and could continue to do the work they are passionate about and provide critical services the public relies upon. Our members deserve a lot of credit for how quickly they managed to adjust to their new environments, keeping themselves and those around them safe.”
From top: A meatpacker in Richmond. Surrey hospital workers stand ready to admit COVID-19 patients at the outset of the pandemic. Photos by Joshua Berson.

But of course, many workers stayed at their posts, their efforts deemed essential to keep society from grinding to a halt.

“Collecting garbage, keeping the water running, staffing hospitals, sanitizing schools and driving buses. CUPE members have shown up every day of this pandemic,” said Hancock of the Canadian Union of Public Employees.

“We have played an outsized role during the COVID crisis in keeping our communities healthy, clean and safe. I could not be more proud of our members.”

From top: Construction was halted early in the pandemic. When it resumed, this ironworker at Olympic Village helped get projects moving again. Among the legion of retail workers who’ve shared smiles and service in anxious times is this meat shop employee on Vancouver’s Granville Island. Her name is Grace. Photos by Joshua Berson.

As the virus has upped anxieties and many resist even basic public health measures such as wearing a mask, frontline workers often bear the brunt. As UFCW 1518 president Kim Novak said in an accompanying Tyee interview today, union members doing their jobs “not only dealt with an increased risk of COVID exposure, they dealt with angry customers, anti-maskers and now anti-vaxxers. They never signed up for that, and it’s completely unacceptable that they should have to deal with that kind of behaviour.”



‘Hope, Pray and Keep Clean’: Driving Taxis in a Pandemic
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“Workers are getting B.C. through the pandemic, we’re driving the recovery — and a lot of us have paid a heavy price along the way,” said Sussanne Skidmore, secretary-treasurer of the BC Federation of Labour, an umbrella organization for 500,000 unionized workers in the province. “But where we’ve had unions, workers have been safer, better paid and better able to weather the storm. No wonder there’s such a surge in organizing. We’re stronger when we stand together.”

Looking to join a union? Here is a good starting place.

Joshua Berson is a member of UFCW 1518 and Unifor 780G. In a past life, he was an HEU member working at the VGH laundry.

Monday, July 12, 2021

REWARDING MEAT INDUSTRY THAT KILLED ITS WORKERS DURING COVID




US pledges $500 million to boost meat processing capacity

12 July 2021

The US government will invest at least $500 million to expand beef, pork and poultry processing capacity, Agriculture Secretary Tom Vilsack said on Friday, after consumers faced limits on meat purchases during the COVID-19 pandemic last year.

According to a report from Reuters, the money from a $1.9 trillion pandemic relief package approved in March will be awarded to meat processors in grants and loans to make the supply chain more resilient and increase competition in the sector, Vilsack said at a news conference in Council Bluffs, Iowa.

President Joe Biden signed a sweeping executive order that pushes the US Department of Agriculture to crack down on "abusive practices of some meat processors" and promote more competition in the US economy.

Cattle ranchers say there are too few processing companies that buy livestock to turn into beef, sometimes forcing farmers to accept the one and only bid they receive for animals.

Ranchers are now selling cattle for a loss even though meat companies make profits selling beef to consumers, Vilsack said.

"It seems to me in fairness profit ought to go both ways," he added.

The meatpacking sector came under increased scrutiny after slaughterhouses closed temporarily during the start of the COVID-19 pandemic as workers fell sick.

When large meat plants close, meat supplies tighten while ranchers get stuck with cattle that would otherwise have been slaughtered. That means the price of cattle generally falls, while the price of meat in supermarkets rises.

A cyberattack against the North American arm of Brazilian meatpacker JBS SA that shut US beef plants last month highlighted concerns about concentration in the sector.

Biden's order directs USDA to consider new rules to make it easier for farmers to bring and win legal claims against big processors.

The USDA said in June it would pursue three rules to strengthen enforcement of the Packers and Stockyards Act, passed 100 years ago to protect farmers from unfair trade practices.

The North American Meat Institute, which represents meat companies, said on Friday that Biden's order will "open the floodgates for litigation."

"Government intervention in the market will increase the cost of food for consumers at a time when many are still suffering from the economic consequences of the pandemic," said Meat Institute President Julie Anna Potts.

TheCattleSite News Desk

Saturday, July 03, 2021

Russia-based hackers breach more than 1,000 businesses

Erin Doherty, Jacob Knutson, Gigi Sukin


Illustration: Aïda Amer/Axios

A Russia-based hacking group known as REvil has compromised the computer systems of at least 1,000 businesses by targeting managed service providers, according to to the cybersecurity firm Huntress Labs Inc.

Why it matters: It's a large-scale ransomware campaign — the full scope of which is not yet known — and comes on the heels of several other high-profile ransomware attacks this year.

Of note via Bloomberg: "Such attacks can have a multiplying effect, since the hackers may then gain access and infiltrate the MSPs’ customers too."
The affected MSPs, platforms that provide IT management and other core network functions for businesses, and companies have not yet been named.

The latest: President Biden said Saturday that the U.S. government is still not certain who is behind the hack, according to Reuters.
"The initial thinking was it was not the Russian government but we're not sure yet," Biden said. Biden said he directed U.S. intelligences agencies to investigate.
Victims have emerged in 11 countries so far, per cybersecurity firm ESET.
Grocery chain Coop’s 800+ stores in Sweden couldn’t open Saturday after the hack led cash registers to malfunction, spokesperson Therese Knapp told Bloomberg.

What they're saying: John Hammond, a cybersecurity researcher at Huntress Labs, said more than 20 MSPs have been impacted. He noted the criminals targeted software supplier Kaseya, using its network-management package to spread the ransomware.
“What makes this attack stand out is the trickle-down effect, from the managed service provider to the small business,” Hammond said. “Kaseya handles large enterprise all the way to small businesses globally, so ultimately, it has the potential to spread to any size or scale business.”

Cybersecurity researcher Jake Williams, president of Rendition Infosec, told AP it's no accident that this happened before a holiday weekend, when IT staffing is generally thin.
Hackers frequently infiltrate widely used software, then spread malware as the software automatically updates.

The privately held Kaseya is based in Dublin, with a U.S. headquarters in Miami. The Miami Herald reported Kaseya's plans to hire as many as 500 workers by 2022 to staff a recently acquired cybersecurity platform.

The big picture: The breach comes after a summit between President Biden and Russian President Vladimir Putin, during which Biden threatened to use the U.S.' "significant" cyber capabilities to respond if critical infrastructure entities are targeted by Russian hackers.
FBI Director Christopher Wray told Congress in June that cyber threats against U.S. businesses are increasing "almost exponentially."

Go deeper: FBI: Russia-linked REvil behind ransomware attack on meatpacker JBS

Editor's note: This story will be updated as new information is released.

Cyber attack on US businesses through Kaseya software to be investigated for Russia links

Mr Biden has ordered an investigation into the cyber attack.(Reuters: Carlos Barria)


A cyber attack that immobilised US businesses ahead of the nation's July 4 holiday weekend will be investigated for links to Russia.

Key points:

US President Joe Biden says authorities are "not sure" whether Russia is behind the attack

Scores of businesses were affected by the attack, but estimates of how many vary

Cyber security experts say the attack is one of the largest of its kind


Security firm Huntress Labs suspects the so-called supply chain attack was carried out by a Russian gang called REvil, which has also been blamed for last month's attack on global meat packer JBS.

US President Joe Biden said authorities were "not certain" who was behind the attack, which experts say is one of the largest of its kind.

"The initial thinking was it was not the Russian government but we're not sure yet," he said.

Mr Biden said he had directed US intelligence agencies to investigate, and the United States would respond if it determined Russia was to blame.
Cybersecurity was a topic of discussion when Mr Biden met
 Russian leader Vladimir Putin last month.(AP: Patrick Semansky)

The hackers who struck on Friday US time hijacked widely used technology management software from a supplier called Kaseya.

They changed a Kaseya tool used by companies that manage technology at smaller businesses. They then encrypted the files of those providers' customers.

Kaseya said on its own website on Friday that it was investigating a "potential attack".

It also said it had limited the attack to "a very small percentage of our customers … currently estimated at fewer than 40 worldwide".

But Huntress Labs said it was working with partners targeted in the attack, and the software was manipulated "to encrypt more than 1,000 companies".

"This is a colossal and devastating supply-chain attack," John Hammond from Huntress said.

Gerome Billois, a cybersecurity expert with Wavestone consultancy, said ransomware attacks typically only affected one business at a time.

"In this case, they attacked a company that provides software for managing data systems, allowing them to simultaneously target several dozen — possibly even hundreds — of companies," he said.

Supply chain attacks have crept to the top of the cybersecurity agenda in the wake of the United States accusing hackers of operating at the Russian government's direction and tampering with a network-monitoring tool built by Texas software firm SolarWinds.

While the attack appeared directed at the US, Swedish supermarket chain Coop revealed it had to close more than half of its stores due to outages linked to the attack.

The company said it lost control of its checkouts after a subcontractor was hacked.

ABC/wires


IT management biz Kaseya pwned by miscreants to infect businesses with ransomware

Plus: Cops seize 3D printers 'used to print guns', and more bits and bytes
Sat 3 Jul 2021 

IN BRIEF In what's looking like a nasty supply-chain attack, IT systems management biz Kaseya was compromised by miscreants, which then used its VSA product to infect its own customers and then their customers with ransomware.

At least 200 businesses were hit, according to infosec biz Huntress. Kaseya meanwhile initially estimated 40 worldwide were infected. It also told its clients to switch off their VSA data management and remote monitoring services immediately.

"We are experiencing a potential attack against the VSA that has been limited to a small number of on-premise customers only as of 1400 EDT today," it said in a Friday advisory.

"We are in the process of investigating the root cause of the incident with an abundance of caution but we recommend that you IMMEDIATELY shutdown your VSA server until you receive further notice from us. Its (sic) critical that you do this immediately, because one of the first things the attacker does is shut off administrative access to the VSA."

It appears that attackers got onto Kaseya's servers and included a copy of the REvil ransomware in a software update for customers that went out on Friday. It has also taken offline its software-as-a-service platform as a precaution.

"We have been advised by our outside experts that customers who experienced ransomware and receive a communication from the attackers should not click on any links – they may be weaponized," Kaseya's advisory added.

The Florida-based company told The Register it was working with the FBI. It's reported that among the victims is Sweden's grocery store chain Coop, a customer of one of Kaseya's customers, causing 500 stores to remain closed.
The Linkedin breach that wasn't

Earlier this week there were some reports that someone had put 700 million Linkedin records up for sale on the dark web. Rather than intrusion, LinkedIn said, someone who had scraped publicly available information, combined it with other available data, and was trying to make a buck or ten out of it.

"We want to be clear that this is not a data breach and no private LinkedIn member data was exposed," Linkedin said. "Our initial investigation has found that this data was scraped from LinkedIn and other various websites and includes the same data reported earlier this year in our April 2021 scraping update."

Scraping is a serious problem for Linkedin, one it has taken to the US Supreme Court over.
Western Digital devices caught in crossfire?

Last week, users of Western Digital's My Book Live found they had lost a lot of data after devices were remotely wiped via a security vulnerability.

At the time, the manufacturer said this was due to a malware attack. Having looked at the IP addresses and network traffic involved, security shop Censys suggested it looked likely that one criminal infected My Book kit and then a separate individual initiated the factory reset command, suggesting someone could be trying to take out a rival.

Western Digital, however, disagrees. "Our investigation shows that in some cases, the same attacker exploited both vulnerabilities on the device, as evidenced by the source IP," it said. "The first vulnerability was exploited to install a malicious binary on the device, and the second vulnerability was later exploited to reset the device."

In the meantime the firm is offering data recovery services to affected folks and promising My Book Live customers a trade-in service for My Cloud accounts.
Google tidies up Nest security

Google has announced that it's beefing up the security of devices in its smart home biz Nest, and made a five-year commitment to support existing products. This comes after it discontinued its Nest Secure home security system.

The Chocolate Factory said all devices sold since 2019 will adhere to the standards of the Internet of Secure Things Alliance (ioXt) on patching and security. In addition Google will publish the ioXt validation results for all of its kit so buyers can make an informed choice.

"A helpful home is a safe home, and Nest’s new safety center is part of making sure Nest products help take care of the people in your life and the world around you," Google said in a blog post.

US police seize 3D printers over gun charges

An unusual case of physical security came up this week after the Pennsylvania police took custody of two 3D printers that allegedly were used to manufacture parts for so-called ghost guns – unregulated firearms American cops and prosecutors aren't too keen on.

“Kenneth Wilson was caught manufacturing untrackable and untraceable firearms out of his home. Once assembled, these fully functional firearms often become a tool for senseless violence,” said the state's Attorney General Josh Shapiro.

“Ghost guns are quickly becoming the weapon of choice for criminals that take the lives of too many Pennsylvanians. My office is working overtime to target these gun traffickers and get illegal guns off our streets.”

In addition to the 3D printers, police also said they seized three ghost gun frames, three firearms, a small amount of methamphetamine, $1,140 in cash, and drug packaging equipment from the suspect's house. ®


REvil ransomware hits 1,000+ companies in MSP supply-chain attack


By Lawrence Abrams
July 2, 2021



A massive REvil ransomware attack affects multiple managed service providers and over a thousand of their customers through a reported Kaseya supply-chain attack.

Starting this afternoon, the REvil ransomware gang, aka Sodinokibi, targeted MSPs with thousands of customers, through what appears to be a Kaseya VSA supply-chain attack.

At this time, there eight known large MSPs that have been hit as part of this supply-chain attack.



Kaseya VSA is a cloud-based MSP platform that allows providers to perform patch management and client monitoring for their customers.

Huntress Labs' John Hammond has told BleepingComputer that all of the affected MSPs are using Kaseya VSA and that they have proof that their customers are being encrypted as well.


"We are tracking 20 MSPs where Kaseya VSA was used to encrypt over 1,000 business and are working in close collaboration with six of them," Hammond shared in blog post about the attack.

Kaseya issued a security advisory on their help desk site, warning all VSA customers to immediately shut down their VSA server to prevent the attack's spread while investigating.


"We are experiencing a potential attack against the VSA that has been limited to a small number of on-premise customers only as of 2:00 PM EDT today.

We are in the process of investigating the root cause of the incident with an abundance of caution but we recommend that you IMMEDIATELY shutdown your VSA server until you receive further notice from us.

Its critical that you do this immediately, because one of the first things the attacker does is shutoff administrative access to the VSA."

In a statement to BleepingComputer, Kaseya stated that they have shut down their SaaS servers and are working with other security firms to investigate the incident.

Most large-scale ransomware attacks are conducted late at night over the weekend when there is less staff to monitor the network.

As this attack happened midday on a Friday, the threat actors likely planned the time to coincide with the July 4th weekend in the USA, where it is common for staff to have a shorter workday before the holidays.

If you have first-hand information about this attack or information about affected companies, we would love to hear about it. You can confidentially contact us on Signal at +16469613731 or on Wire at @lawrenceabrams-bc.
REvil attack spread through auto-update


BleepingComputer has been told by both Huntress' John Hammond and Sophos' Mark Loman that the attacks on MSPs appear to be a supply chain attack through Kaseya VSA.

According to Hammond, Kaseya VSA will drop an agent.crt file to the c:\kworking folder, which is being distributed as an update called 'Kaseya VSA Agent Hot-fix.'

A PowerShell command is then launched that first disables various Microsoft Defender security features, such as real-time monitoring, Controlled Folder Access, script scanning, and network protection.

It will then decode the agent.crt file using the legitimate Windows certutil.exe command to extract an agent.exe file to the same folder, which is then launched to begin the encryption process.

PowerShell command to execute the REvil ransomware
Source: Reddit

The agent.exe is signed using a certificate from "PB03 TRANSPORT LTD" and includes an embedded 'MsMpEng.exe' and 'mpsvc.dll,' with the DLL being the REvil encryptor. When extracted, the 'MsMpEng.exe' and 'mpsvc.dll' are placed in the C:\Windows folder.

Signed agent.exe file

The MsMPEng.exe is an older version of the legitimate Microsoft Defender executable used as a LOLBin to launch the DLL and encrypt the device through a trusted executable.

The agent.exe extracting and launching embedded resources

Some of the samples add politically charged Windows Registry keys and configurations changes to infected computers.

For example, a sample [VirusTotal] installed by BleepingComputer adds the HKLM\SOFTWARE\Wow6432Node\BlackLivesMatter key to store configuration information from the attack.

Advanced Intel's Vitali Kremez told BleepingComputer that another sample configures the device to launch REvil Safe Mode with a default password of 'DTrump4ever.'

[HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Winlogon]
"AutoAdminLogon"="1"
"DefaultUserName"="[account_name]"
"DefaultPassword"="DTrump4ever"

Kaseya CEO Fred Voccola told BleepingComputer in an email late Friday night that a vulnerability in Kaseya VSA was used during the attack and that a patch will be released as soon as possibly.

"While our investigation is ongoing, to date we believe that:

Our SaaS customers were never at-risk. We expect to restore service to those customers once we have confirmed that they are not at risk, which we expect will be within the next 24 hours;

Only a very small percentage of our customers were affected – currently estimated at fewer than 40 worldwide.

We believe that we have identified the source of the vulnerability and are preparing a patch to mitigate it for our on-premises customers that will be tested thoroughly. We will release that patch as quickly as possible to get our customers back up and running." - Kaseya.

BleepingComputer has sent followup questions regarding the vulnerability and was told a comprehensive update would be released Saturday afternoon.

Huntress continues to provide more info about the attack in a Reddit thread and we have added IOCs to the bottom of this article.
Ransomware gang demands a $5 million ransom

A sample of the REvil ransomware used in one of these attacks has been shared with BleepingComputer. However, it is unknown if this is the sample used for every victim or if each MSP received its own ransom demand.

The ransomware gang is demanding a $5,000,000 ransom to receive a decryptor from one of the samples.


Ransom demand

According to Emsisoft CTO Fabian Wosar, MSP customers who were affected by the attack received a much smaller $44,999 ransom demand.

While REvil is known to steal data before deploying the ransomware and encrypting devices, it is unknown if the attackers exfiltrated any files.

MSPs are a high-value target for ransomware gangs as they offer an easy channel to infecting many companies through a single breach, yet the attacks require intimate knowledge about MSPs and the software they use.

REvil has an affiliate well versed in the technology used by MSPs as they have a long history of targeting these companies and the software commonly used by them.

In June 2019, an REvil affiliate targeted MSPs via Remote Desktop and then used their management software to push ransomware installers to all of the endpoints that they manage.

This affiliate is believed to have previously worked with GandCrab, who also successfully conducted attacks against MSPs in January 2019.

This is a developing story and will continue to be updated.

Update 7/1/21 10:30 PM EST: Added updated statement about vulnerability.
Update 7/3/21 5:37 PM EST: Updated title and added information on how over 1,000 businesses have been affected this attack.