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Thursday, June 13, 2024

"It appears to be a payoff": Expert says Kushner's Saudi cash an "egregious" national security worry

Charles R. Davis
SALON
Wed, June 12, 2024 

Jared Kushner John Lamparski/Getty Images

Based on his prior experience and demonstrated abilities, Jared Kushner never should have landed a job in the White House. Before joining the Trump administration, Kushner was best known as his father’s son — a real estate mogul and disbarred attorney who gifted his child control over the family’s portfolio after being convicted of multiple felonies — whose greatest accomplishment was purchasing a New York City skyscraper for $1.8 billion just months before the housing market crashed, slashing the property's value in half.

To be fair, Kushner made the best of his time in public service and appears to have turned it all around. Although he did not achieve peace in Israel and Palestine, Kushner was able to establish strategically important friendships with future benefactors in the Persian Gulf, a region he visited no fewer than 10 times on the taxpayer’s dime. A day before the January 6 insurrection, he was in Saudi Arabia for an event marking the restoration of relations between the kingdom and its rival, Qatar.

Out of office two weeks later, Kushner started up an investment firm, Affinity Partners, that quickly attracted big-time investors from the Middle East, despite the 43-year-old owner’s lack of experience running such an operation and a Google-able record of botching his only major investment decision.


As The New York Times reported in April, Kushner’s investment fund, valued at $3 billion, “is financed almost entirely from overseas investors with whom he worked when he served as a senior adviser in the Trump White House.”

Some two-thirds of that money has come from Saudi Arabia’s state-run Public Investment Fund, whose own advisers deemed Kushner’s fund “unsatisfactory in all aspects” only to be overruled by a board that includes Crown Prince Mohammed bin Salman, the man who ordered the killing of U.S.-Saudi journalist Jamal Khashoggi when Trump was in office and who Kushner today describes as a “visionary leader.” The other third? Much of it reportedly comes from other sovereign wealth funds run by the likes of Qatar and the United Arab Emirates.

That arrangement — Kusner receiving billions of dollars from friends he made as a government employee — has attracted scrutiny from Democrats and watchdog groups, who suspect that Charles Kushner’s son (turned Ivanka Trump’s husband) might be doing so well for reasons that are not entirely above board.

In a letter sent Wednesday, Senate Finance Chairman Ron Wyden, D-Ore., demanded that Kushner and company answer questions about their relations with foreign powers and suggested that what he knows so far points to their investments being part of an influence operation.

“Mr. Kushner’s limited track record as an investor, including his nonexistent experience in private equity or hedge funds, raise questions regarding the investment strategy behind the seeding investments and lucrative compensation that Affinity received from the Saudi PIF and other sovereign wealth funds,” Wyden wrote in the letter, addressed to Affinity Partners’ chief financial officer, Lauren Key. In addition to the investments themselves, Kushner’s firm charges a 2% fee to manage the states’ assets, generating at least $80 million from the Saudis alone.

It all adds up to “an appearance that Affinity’s investors are motivated not by commercial interests of seeking a return on investment,” Wyden wrote, “but rather by strategic considerations of foreign nationals seeking to funnel money to U.S. individuals with personal connections to former President Trump.”

Since being awarded billions by governments he worked with — Kushner arranged it so Trump’s first state visit was to Saudi Arabia — the former president’s son-in-law has used at least some of the money to pursue projects that Trump himself was interested in. Earlier this year, Kushner scored a major real estate deal in Belgrade, Serbia, under which Affinity Partners will have the exclusive rights to build a luxury compound on the site of a former army headquarters that was bombed by NATO in 1999. Trump had wanted to build a hotel on the same site, where Kushner has agreed to finance a memorial on behalf of the pro-Russia Serbian government that will mark the NATO campaign, which came as Belgrade’s forces were committing war crimes in neighboring Kosovo.

Virginia Canter, former chief ethics counsel for the Treasury Department and now an attorney with the watchdog group Citizens for Responsibility and Ethics in Washington, said an investigation of Kushner is not just “long overdue” but “vital for our national security.”

“It’s pretty apparent that he made and was involved in decisions that were unusually favorable to the Saudis and then he turned around, within weeks of leaving the White House, and was engaging in negotiations with them to obtain a $2 billion investment,” Canter told Salon. “It just raises all kinds of national security concerns for a former government official at that level – a former White House official — who never qualified, legitimately, for a security clearance.”

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Even before he left office, there were concerns about Kushner’s ties to sketchy interests. He was indeed denied a security clearance, The New York Times reported, after officials “raised questions about this and his family’s real estate business’s ties to foreign governments and investors”; he only obtained one after his father-in-law intervened. While in government, and following the murder of Khashoggi inside of Saudi Arabia’s Turkish embassy, Kushner, by then on a first-name basis with the Saudi leader who ordered the killing, “became the prince’s most important defender in side the White House,” per the Times.

“Every action he took seemed driven by what was going to come after he left office,” Canter said, noting that Kushner’s Trump-ordered security clearance granted him access to valuable, top-secret information. While he’s not the first former government official who has sought to cash in, Kushner is one of the few to completely disregard the traditional cooling off period (the other: former Trump Treasury Secretary Steven Mnuchin, whose investment firm is also backed by Riyadh).

“It’s one of the most egregious situations I’ve ever seen in decades of working in the federal government as an ethics official,” Canter said. “It appears to be a payoff as much as a potential investment,” she said, and also something of a purchase: buying Trump’s continued support for the Saudi government, which has also paid the former president millions of dollars to host its Liv Golf events. By enriching Kushner, and consequently Trump’s daughter, Ivanka, the Saudis have increased the potential cost, personally, for ever breaking with them politically.

“That,” Canter said, “may be a way of keeping Trump, in or out of office, on the Saudi side.”

Opinion
Democrats Are Finally Coming for Jared Kushner and His Shady Firm

Talia Jane
THE NEW REPUBLIC
Wed, June 12, 2024 


Jared Kushner’s Saudi Arabia–funded investment firm is finally being seriously examined. Senate Democrats have launched an investigation into Kushner’s firm, Affinity Partners, seeking information about the company’s investments—after it received $2 billion of its $2.5 billion in investments from Saudi Arabia.

Senate Finance Committee Chair Ron Wyden is leading the investigation, noting the peculiarities of nepobaby Kushner’s involvement in business dealings he has next to no experience doing. In a letter Wednesday asking Kushner’s firm to respond to queries about its investors, Wyden wrote:

Mr. Kushner’s limited track record as an investor, including his nonexistent experience in private equity or hedge funds, raise questions regarding the investment strategy behind the seeding investments and lucrative compensation that Affinity received from the Saudi PIF and other sovereign wealth funds.

Virginia Canter, former Treasury Department chief ethics counsel, told Salon that Kushner’s shady business dealings with Saudi Arabia, so soon after he and his father-in-law left the White House, raise serious national security concerns. “It’s one of the most egregious situations I’ve ever seen in decades of working in the federal government as an ethics official,” she said. “It appears to be a payoff as much as a potential investment.”

Kushner’s firm launched in 2021 and immediately received a majority of its funds from Saudi Arabia’s crown prince, with a whopping 99 percent coming from foreign sources. Kushner defended the flood of cash by pointing out that Crown Prince Mohammed bin Salman’s fund also invests in Nintendo, Uber, and Microsoft—which is more of an insult to those companies than it is a vouch for Kushner.

“The Saudi PIF’s decision to invest $2 billion in Affinity so soon after Kushner’s departure from the Trump White House raises concerns that the investment was a reward for official actions Kushner took to benefit the Saudi government, including preventing accountability for the Saudi government ordering the brutal murder of journalist and American citizen Jamal Khashoggi,” Wyden wrote.

In 2018, MBS oversaw the brutal assassination of Washington Post journalist Jamal Khashoggi. Trump’s White House paid no mind to the murder, instead releasing a shocking statement expressing support for Saudi Arabia and sowing doubt that MBS ordered Khashoggi’s murder, despite a CIA analysis finding that was certainly the case. Trump himself has curious ties to MBS, which during his presidency raised concerns of foreign influence.

This isn’t the first time Congress has sought answers about Kushner’s firm. In 2023, the stench of corruption was so putrid, Congress subpoenaed the company over its ties to Saudi Arabia, with even Republican James Comer saying Kushner’s Saudi blood money “crossed the line of ethics.”


Senate Democrats Launch Probe Of Foreign Payments To Jared Kushner’s Firm

Arthur Delaney
HUFFPOST
Wed, June 12, 2024 


Democrats are increasing their scrutiny of Jared Kushner’s business activities.

Senate Finance Committee chair Ron Wyden (D-Ore.) asked Kushner’s firm, Affinity Partners, for details about its investors on Wednesday, including the $2 billion it received from the Saudi Arabian government’s Public Investment Fund in 2021.

“Mr. Kushner’s limited track record as an investor, including his nonexistent experience in private equity or hedge funds, raise questions regarding the investment strategy behind the seeding investments and lucrative compensation that Affinity received from the Saudi PIF and other sovereign wealth funds,” Wyden wrote.

A panel that screens investments for the Saudi sovereign wealth fund warned against investing with Kushner, given his inexperience in finance, but the full board, led by Crown Prince Mohammed bin Salman, overruled the panel, The New York Times reported in 2022.

Kushner advised Trump on foreign affairs, guided his administration to embrace Saudi Arabia as an ally, and remained in close contact with the crown prince even after he was implicated in the dismembering of American journalist Jamal Khashoggi.

“The Saudi PIF’s decision to invest $2 billion in Affinity so soon after Kushner’s departure from the Trump White House raises concerns that the investment was a reward for official actions Kushner took to benefit the Saudi government, including preventing accountability for the Saudi government ordering the brutal murder of journalist and American citizen Jamal Khashoggi,” Wyden wrote.

Wyden’s letter asked Affinity Partners for details about its seeding investments, the investments made by the firm, as well as the fees it has received, and the amount Kushner has been paid. The company did not immediately respond to requests for comment made through its website.

Wyden’s letter represents an escalation of Democratic scrutiny of Kushner’s business activities, which have been controversial from the start. Even House Oversight Committee chair James Comer (R-Ky.), an aggressive defender of Donald Trump, said last year that he thought Kushner “crossed the line of ethics” with his Saudi deal.

Comer has overseen Republicans’ impeachment inquiry against Joe Biden, which has largely focused on business deals by the president’s son. Republicans have said he improperly traded on his father’s former position as vice president during the Obama administration.

Democrats on Comer’s committee have highlighted the millions Trump’s business received from foreign governments while he was president and also questioned Kushner’s Saudi payday. Unlike Wyden, however, House Democrats don’t have subpoena power because Democrats don’t have a majority in the chamber.
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Wyden probes Kushner firm for investment details

Lauren Irwin
THE HILL
Wed, June 12, 2024

Wyden probes Kushner firm for investment details


Senate Finance Committee Chair Ron Wyden (D-Ore.) launched an investigation Wednesday into former President Trump’s son-in-law, Jared Kushner, and his investment firm, Affinity Partners, over details regarding its investments in Saudi Arabia.

In a letter to Affinity Partners Chief Financial Officer Lauren Key, Wyden said its concerning that several Middle Eastern governments, including Saudi Arabia, the United Arab Emirates and Qatar, are using funds managed by the company and creating “significant conflicts of interest and potential counterintelligence risks.”

“These arrangements also raise concerns that Affinity’s exclusively foreign funded private investment funds are being exploited as a loophole by Mr. Kushner and other former U.S. government officials as a means to avoid complying with the Foreign Agents Registration Act and other U.S. laws requiring U.S. persons to disclose payments form foreign governments,” Wyden wrote in the letter.

The chair is asking for the company to provide a list of all investors in funds managed by Affinity since its inception in 2021. For each investor, Wyden asked for Affinity to disclose the amount invested in funds it manages, total amount of fees the investment firm has been paid, and the annual rates of return, as well.

Building off a report by The New York Times that found Affinity disclosed that 99 percent of its assets were attributable to non-U.S. people or entities, Wyden is asking why that is the case.

One of Wyden’s asks specifically names Kushner, requesting the company detail how much Affinity paid him from 2021 to 2023, in not only salary but bonuses, other compensation, dividends and other distributions associated with the company.

The senator also asked for a list of all the shareholders and the number of shares each person owns, among several other requests he made.

During his time in the Trump administration, Kushner oversaw Middle East policy. He secured a $2 billion investment from Saudi Arabia six months after leaving the White House and has come under criticism for the potential political influence.

Kushner has defended himself and his firm’s action about the allegations of conflict of interest.

The Hill has reached out to Affinity and the attorneys representing Kushner for comment.

Tuesday, June 11, 2024

The Next Front in Palestine Solidarity: Worker Strikes
June 5, 2024
Source: Socialist Project


This spring’s university encampment protests represented a welcome step up in the Palestine solidarity movement. Now, as students leave campus for the summer, their activism is spawning a further escalation – one that holds tremendous promise for the US anti-war movement: worker strikes.

This week, 48,000 University of California (UC) workers – postdocs, graduate student researchers, and teaching assistants – began a rolling strike in response to the violent police crackdown on pro-Palestinian campus students and workers. On Monday, 3,000 union members at UC Santa Cruz walked out of classrooms and research laboratories and onto picket lines. Today, May 23, Union leaders announced that beginning next Tuesday, more than 10,000 workers at UCLA and UC Davis will begin to strike as well, and other workers in the 11-campus UC system will soon follow.

Mass anti-war street demonstrations seek to disrupt political discourse. But there are very few instances – at least in the United States – of workers wielding the strike weapon to disrupt the war economy. The UC strike could introduce a powerful new strategy to not just resist today’s US support for the Israeli war on the Palestinians but also challenge the US imperialist war machine in the years ahead.


Expanding the Strikes

Two factors will determine whether this new anti-war front succeeds: First, whether UC workers can persuade others to expand the strike strategy to more universities – and even other industries; and second, whether the workers can sustain strikes through the inevitable backlash, which will be particularly brutal precisely because opponents will properly see widespread strike action as a significant threat to their war plans.

The UC workers – members of UAW 4811 – credit the student-led protests for inspiring their union to go on strike. Along with their peers across the country, UC students this spring began building encampments in solidarity with Palestine. The backlash from UC administrators mirrored the repression at Columbia University and elsewhere: mass, often violent arrests of students, graduate workers, and faculty at UC campuses in San DiegoBerkeleyIrvine, and most notoriously, in Los Angeles, where on April 30 police stood aside while a far-right mob attacked the peaceful encampment, shooting fireworks and pepper spray and beating pro-Palestinian students and workers with sticks. Just 24 hours later, as the protesters were recovering from the assault, police swept in and violently broke up the encampment, arresting 209 people.

“We watched our union siblings beaten by Zionist mobs while the university did nothing, at first,” said Jake Orbison, an English Department graduate student worker at UC Berkeley. Then, by “calling the cops to beat their students a second time,” the UC administration “politicized every UC campus,” Orbison said.

Last Wednesday, police from at least 23 different Orange County police departments assaulted the UC Irvine pro-Palestine encampment. They beat dozens of protesters, including History Department graduate student worker Mark Gradoni, who spent the night in jail alongside National Lawyers Guild legal observers, a journalist, faculty, and others who had been seized in the police riot. “It’s surreal to be at @UCIrvine, my workplace & intellectual home, to attend my friend’s dissertation defense and then be attacked, beaten, and jailed because members of our academic community hung a banner in the memory of the late [assassinated Palestinian human rights activist] Alex Odeh,” he tweeted the next day.

In the wake of the police crackdown, the UAW filed a series of unfair-labor-practice charges against the university, detailing how it violated the members’ legal and contractual rights when it attacked and arrested union members alongside others protesting peacefully.

The union demanded that the university provide amnesty for all protesting UC workers, students, and faculty; commit to the right to free speech and political expression on campus; divest from weapons manufacturers, military contractors, and companies profiting from Israel’s war on Gaza; disclose all funding sources and investments; and, most ambitiously, give research workers transitional funding to opt out of projects tied to the US military or oppression of Palestinians.

In a series of strike authorization votes last week, nearly 20,000 UAW 4811 members statewide voted 79-21 percent in favor of striking.

Contemporary strikes in America usually focus on the traditional union contract topics of “wages, hours, and working conditions.” In this strike, the UAW members are pointing out that police violence, the suppression of speech, and the university’s role in the war economy are integrally tied to working conditions; solidarity with Palestinians half a world away starts with defending your own rights at work.

“When we’re fighting for wages, it’s about who has access to the university. Right now, our fight is about our right to political speech and protest, which goes to the heart of our rights as workers,” said UAW 4811 President Rafael Jaime, a graduate worker in the UCLA English Department. Workers elsewhere should take note of this expansive understanding of union rights.

UC leaders were quick to call the action “illegal.” But the UAW members appear undeterred by these employer threats. As education workers in the #RedForEd movement of recent years know well, the go-to union-busting move for employers facing a powerful strike is to declare it outside the law. Indeed, the declaration of illegality by employers is simply proof of workers’ tremendous strike power.

Observers outside the university setting may be skeptical that graduate student workers and postdocs striking for Palestine will have much economic impact. What does the ivory tower have to do with the Pentagon or the Israeli assault on Gaza? Quite a lot, as it turns out.

Department of Defense


In 2021, the Department of Defense (DoD) gave a staggering $7.36-billion in research grants to 454 different colleges and universities. Last year, the University of California accepted $333-million from the DoD; the University of Texas at Austin, $191-million; the University of Southern California, $126 million; Columbia University, $49 million; Northeastern University, $33-million. These grants weren’t just for engineering programs and the hard sciences. Hundreds of millions of dollars in DoD grants went to math, psychology, and other social science departments. And those figures are likely a vast understatement of the war economy’s iron grip on higher education – they do not include grants from other federal agencies, outside of the Pentagon, that have military applications.

“People think about academic workers as somehow being removed from the supply chain of war production,” said Sarah Mason, a UC Santa Cruz graduate student worker. “The reality is that universities are a research arm of the defense industry. Millions and millions of dollars flow into laboratories on campuses across the UC, across the country. And this money is directly funding research that supports the war and occupation, not just in Palestine, but US imperialism around the world.”

Much of this military grant money gets obscured in “dual-use research,” which Isabel Kain, a graduate student worker in the UC Santa Cruz Astronomy Department, described as “research that has an obviously weaponizable threat, but also could be put to positive use in society,” such as medical and biological research. In the past, Kain said, many university researchers avoided confronting basic questions about their role in the war economy: “My research is my research and what other people do with it is not my problem.”

But the Israeli mass killings of Palestinians and universities’ violent reaction to the anti-war movement have changed the calculus for thousands of UC scientists, Kain said. “The brutal police crackdown is the thing that’s pushing them over the edge to take collective action,” she said.

This symbiotic relationship between universities and the military puts higher-education workers in a position of significant structural power. A strike by university workers won’t have the immediate impact of, say, longshore workers blocking a weapons shipment. But over time, and enacted across many campuses, a university workers’ strike could challenge the imperial war machine.

“We have a unique opportunity – we are workers at an institution that hides its financial interests behind a veil of the pursuit of knowledge, while maintaining its position as a key node in the military industrial complex’s knowledge production,” said Tara Plath, a graduate student researcher in Film and Media Studies at UC Santa Barbara. “We have a role to expose and condemn how business is conducted at the UC, and how its bottom line is prioritized over the safety of academic workers and students alike.”

Two important developments in recent decades have made this strike moment possible. First is the changing composition of the university workforce. Fifty years ago, more than three-quarters of university faculty were tenure or tenure-track. Today, under the influence of increasing corporate control, universities have flipped those numbers: Some 75 percent of college classroom teachers are precariously employed as “adjuncts” – lecturers or graduate teaching assistants with no long-term job security. Laboratories, too, are dominated by graduate student workers and postdoctoral scholars. And increasingly, universities are turning to undergraduate workers to teach their peers, lead course sections, and do lab work.

The second development is that these workers – very highly trained, but just as precariously employed as Uber drivers or Amazon warehouse workers – did what comes natural to workers in exploitative circumstances: They banded together for self-defense.

In the last decade, more than 120,000 graduate and undergraduate workers across the US organized into unions, with more than 100,000 of those workers organizing in just the last three years, according to Joseph van der Naald at the City University of New York. Thousands more faculty – more than 8,200 last year alone – also formed unions during this period. In these new unions, workers have wasted little time in exercising their strike muscles. In the last year, there have been at least 18 higher education strikes, involving as many as 29,000 workers at a time, according to Cornell University’s Labor Action Tracker project. The UC workers now on a rolling strike know what it takes to run a picket line, having struck for six weeks in 2022.

None of this potential for worker strikes would have been possible during the last major anti-war upsurge, following the 2003 US-led invasion of Iraq. Veteran union organizer Gene Bruskin, one of the founders of US Labor Against the War, recalled the uphill battle just to get unions on record opposing the war. “We had to crank it out local by local, resolution by resolution, taking it into the national unions, organizing all the different entities to bring things to the floor. And that took months and months, and in some cases years,” he said.

Today, with university workers organized into unions, the opportunities are much greater. Yet none of the UC workers I spoke with in the last week seemed to be under any illusion about the scale of the challenge. They are going up against not just hostile university administrations but also big business leaders who are lobbying for severe crackdowns on the movement, a Biden White House that shamefully has denounced the protesters, and Israeli government leaders who are pledging to bring a new McCarthyism to US college campuses.

The student-led encampments have been organized admirably, but “organizing a strike is something of a different prospect,” said Jack Davies, a graduate worker at UC Santa Cruz. “A relatively small and coherent portion of the student body can drive a successful encampment and reach advanced positions on messaging, demands, platforms, etc. When you’re trying to organize a strike, you need a far broader commitment from the body of workers.”

Yet, Davies said, UAW 4811 members on the UC campuses seem determined to accept that challenge. “It’s crucial that we punch back right now, that we actually fight back, because workers across this country are getting the shit kicked out of them on this issue,” he said. “They’re getting fired, they’re getting arrested, even beaten. We’re seeing this in all kinds of sectors. And I think an example of a genuine fightback by organized labor in any sector is critical now, one that shows workers everywhere, in this moment, that the boss can’t have it all their way. What exactly is possible in our strike, and where it might lead in terms of winning real demands and setting precedents over disclosure, divestment, and transitional funding, is hard for anyone to say right now. I only know we have to hit back.” •

The Labor Movement Is Being Strengthened by the Fight for Palestine

Labor’s increasing support of the movement for Palestine is one of the most important developments in decades, and it is making our unions stronger.


June 6, 2024
Source: Left Voice


United Auto Workers members at the University of California marched in Oakland. Attacks on campus occupations have led to unfair labor practice charges and even a strike vote. Photo: UAW Local 2865.



On May 23, every single member of the 27-member executive board of the PSC CUNY union — which represents more than 30,000 staff, faculty, and graduate students at the City University of New York (CUNY) — unanimously stood against a resolution in support of the CUNY Gaza solidarity encampment and its demands, including full divestment from and academic boycott of Israel. The board’s argument: supporting these demands would weaken the union and hurt their ability to win a good contract.

This same argument — that the question of the genocide in Gaza is a divisive one that unions should avoid taking sides on — has been used by the leaders of several education unions to apologize for their lack of action since the first encampment at Columbia University was established on April 17. Sadly, many unions have continued to refrain from taking any direct action in support of the students or the calls from Palestinian organized labor to divest from Israel. Although many unions, including the PSC and the United Auto Workers (UAW), have called for a cease-fire, and some have even criticized the violence against the student encampments, few have actually backed up such statements with any kind of action. The leadership of the PSC, for instance, did not organize a single union member to attend the CUNY Gaza solidarity encampment in defense of the students, or to mobilize on May Day to defend the movement for Palestine in New York City. In the absence of such actions, calls for a ceasefire and statements about the right to protest issued by our union leaders are meaningless. Such statements, after all, should be the beginning, not the end, of action.

Thankfully, not every union has been so reticent to stand up for Palestine. Across the United States and Canada, rank-and-file union members have been stepping up to show their support for Palestine and to push their unions to do the same. And it’s working. Despite the failure of the bureaucratic leaderships of academic unions like the American Federation of Teachers and the American Association of University Professors, other unions have heeded the call raised by their members to use their power to take real action to fight for Palestine and to end the genocide in Gaza. In doing so, they are not only building and strengthening the kinds of rank-and-file organizational infrastructures needed to take collective action, they are also building trust within the communities where they work, inspiring their members to become more involved, and expanding the horizons of what is possible for organized labor as a whole.

In Canada, for example, the Ontario Federation of Labor (OFL), which represents 54 unions and over a million workers, did not sit idly by while university officials threatened to dismantle the biggest Gaza solidarity encampment in North America at the University of Toronto. Instead, they called on all of their members to turn out in defense of the encampment, telling the university President, “[If] you decide to move against the students, you’ll have to go through the workers first.” In response to this fundamental act of solidarity, thousands of union members and workers joined an emergency meeting on May 27 to defend the encampment and show their support for the students and for Palestine. This display of power and worker organization may have been a pivotal moment for the movement, since just two days later a Canadian court ruled against the university’s request to disband the encampment, thus ensuring that it would be allowed to remain until at least the middle of June, after graduation ceremonies had ended. This action, however, was a victory not only for the encampment but also for the workers and their unions. Every time workers take action like this, every time they refuse to play by the rules and win, every time they expand their struggle beyond their own immediate interests, they become stronger, bolder, more organized, and more connected to the struggle and the rest of the working class. Thanks to this action, the OFL’s 1 million members can learn lessons from this victory, and take this energy and enthusiasm into their various contract struggles and their ongoing fight against Ontario premier Doug Ford’s cuts to public health care.

Meanwhile, in California, academic workers have begun what can only be called an historic strike in support of the student movement for Palestine. UAW 4811, which represents 48,000 workers across the University of California (UC), has launched what could be one of the biggest political strikes in the United States since the Taft Hartley Act outlawed such strikes in 1947. In response to the repression of the student movement and the ongoing genocide in Gaza, 4,811 members are now striking on five different UC campuses across the state, with plans to strike at more campuses this week if the university does not meet its demands. These demands include amnesty for all pro-Palestine protesters, divestment from weapons manufacturers “profiting from Israel’s war on Gaza,” and full disclosure of all university funding and investments.

While the union is arguing that the university engaged in an unfair labor practice (ULP) when it used police to break up encampments on several campuses, including UC Irvine and UC Los Angeles, where more than 210 students and workers were arrested after a violent raid by the Los Angeles Police Department, this strike isn’t only about the safety of the union members or their right to protest. It is fundamentally a political strike in support of the student movement for Palestine. And this is why it is so important. While the strategic move to strike in response to the ULP has so far protected the union from legal consequences, the members who are on strike know that they are defying the no-strike clause in their contract as well as the federal Taft Hartley Act, which explicitly outlaws political strikes.

As UAW 4811 member and UCLA PhD student Desmond Fonseca told the podcast On The Line last week,


We are going out on strike as part of this movement, to defend our right to be a part of this movement, to defend organized labor’s right to fight for a free Palestine, and it’s such a historic step that I know all of our workers are very conscious of. … We are expanding the horizons of what is possible. And as long as we show organized labor and the country as a whole that unions can be in this fight and can be in this fight seriously, and our members can be active and participate and can grow in their political consciousness about what side we’re on — we’re on the side of workers wherever they are oppressed and exploited across the world — and that to me is a victory … and it doesn’t end when our strike ends.

In other words, these workers know, whether they win their demands or not, that they are standing against the decades-long repression of political strikes in the United States, a struggle that makes us all stronger, and which can embolden other unions to do the same. Indeed, like New York State’s Taylor Law, which prohibits strikes by state employees, laws that limit the power of working people are only as powerful as we allow them to be, and the strike at the University of California is a perfect example of how to fight such laws by breaking them.

As the summer approaches and students head home, it is more and more important than ever that organized labor follow the lead of these workers and take the fight for Palestine into our workplaces everywhere, because solidarity makes us all stronger. But, of course, we cannot expect our leaders to do this for us. If we want to build fighting unions that can win real political demands, we must begin by organizing ourselves as the rank and file in opposition to the fake progressivism of our bureaucratic leaderships, which remain loyal to the Democratic Party and the state.

Friday, June 07, 2024

Ultra-cheap meals from China’s delivery giant are hugely popular. Drivers are bearing the costs

Meituan’s group order program boomed amid China’s post-Covid-19 thrift economy, but delivery drivers say they’re working longer for less pay.
By VIOLA ZHOU
7 JUNE 2024

China’s food delivery giant, Meituan, is attracting lower-income consumers by offering discounted meals if multiple people order from the same restaurant.
The program is part of the country’s post-Covid-19 thrift economy, as consumers seek discounted goods amid economic uncertainties.
Gig riders say they are working more for less pay while delivering batched orders.


On a rainy day in November, food delivery worker KX Wu loaded 16 packages of rice bowls, noodles, and bubble tea onto his scooter, balancing some items on the handles, and began going door-to-door in a dense neighborhood in the southern Chinese city of Nanning. Some customers lived in high-rises with elevators, and others in walk-ups. As time went on, Wu grew worried that the customers would complain because the noodles were already cold.

He spent more than an hour delivering to nine different locations. For those deliveries, Wu earned just about 30 yuan ($4.15).

To many customers, however, the risk of cold noodles is worth the money saved on “group” orders from China’s leading on-demand delivery company, Meituan. Under the Pinhaofan program (which means “grouping for good meals”), Meituan users place group orders by sharing links with people who live nearby, and enjoy a big discount if two to four people end up ordering the same things together. The goal is to make delivery so cheap that even frugal or low-income buyers could afford frequent orders. “Eat well for 9.9 yuan ($1.4) and no delivery fee,” the program’s tagline reads.

Meituan is offering ultra-cheap meals under its group delivery program, including noodle bowls, dumplings and peking duck, priced at as low as 52 cents each. Meituan

But the program is a headache for delivery workers. They usually need to travel to multiple locations to deliver one group order, and the pay is often not worth it, five current and former workers told Rest of World. By adding to delivery riders’ workload, Meituan is able to offer steep discounts and attract new users in the low-income population, experts said. Workers’ grievances have led to an increase in customer complaints and arguments erupting between drivers and customers.

First introduced in one city in 2020, Meituan has gradually rolled out Pinhaofan across China, hitting almost 5 million orders per day in 2024, according to Chinese business news outlet LatePost.

Its success is another sign of China’s post-Covid-19 thrift economy, as consumers seek discounted goods to counteract the impact of economic uncertainties. On Pinhaofan, users often get meals for under $3 if they join group orders. “They are pretty tasty and very cheap,” Fandara Cao, a 21-year-old engineering major in Ganzhou, Jiangxi province, told Rest of World. Cao has been ordering dinner on Meituan almost every day since she discovered the app’s group-order feature. Her go-to options include a 10.4-yuan ($1.44) wrap-and-congee set and a 7-yuan (97 cents) bubble tea.

Meituan customers spent an average of 48.2 yuan ($6.7) per order in 2021, the last time the company disclosed the data. As the dominant delivery platform, Meituan needs to offer something cheaper if it wants to grow its user base, especially in the lower-income populations, Li Chengdong, head of Chinese tech think tank Haitun, told Rest of World. Having users from the same area order as a group allows each person to save on delivery costs, he said. The rider Wu, for example, was paid 1.8 to 2.5 yuan (25 to 35 cents) for delivering each Pinhaofan meal in late 2023, compared with 5 yuan (69 cents) for a regular order.

Alibaba’s Ele.me, China’s second-biggest delivery platform, has launched a similar group-ordering feature. But Li said it would be hard for Ele.me to compete, given its smaller user base.

Meituan did not respond to a Rest of World request for comment.

Millions of people work for Meituan. Chinese food delivery apps’ evolving algorithms that squeeze workers’ income while making deliveries faster have come under public criticism over the past few years. To earn the highest possible income, workers have to take as many orders as possible, meet all individual deadlines plus earn positive customer reviews.

Riders said they occasionally make good money from Pinhaofan: If people from the same school or office join a group order, workers deliver only to one location. But in many cases, they are picking up from one restaurant and delivering to customers living in different buildings. On social media and in Chinese media reports, riders have spoken of long elevator wait times and sprawling apartment complexes as reasons why they struggle to deliver orders on time.

“The rate was too low,” a 27-year-old former delivery rider from Sichuan province, who requested anonymity for privacy reasons, told Rest of World. “I could accept it if I didn’t have to climb up buildings. The walk-ups were brutal.” The single mother spent three months delivering Pinhaofan orders before quitting.


“It’s a way that the platform as a technological system takes the autonomy away from the workers.”

In 2021, Chinese regulators ordered delivery and ride-hailing platforms to compensate workers fairly. But a subsequent slowdown in economic growth and high youth unemployment have sent a steady supply of young workers to the gig economy, giving platforms little incentive to raise wages, according to Julie Yujie Chen, an assistant professor at the University of Toronto who has studied China’s food delivery industry.

Disputes have erupted between disgruntled delivery workers and price-sensitive consumers. On social network Xiaohongshu and consumer complaint platform Black Cat, Pinhaofan users have complained about delivery workers displaying sour attitudes, arriving too slowly, or refusing to deliver food to their doors. Unlike regular orders, Pinhaofan does not set deadlines for riders and this often leads to longer waiting times.

A Xiaohongshu user posted a chat record showing a delivery rider calling them a “Pin dog” after the user requested the food be brought up to their apartment rather than handed over by the elevator, as the rider intended. A food stall owner in the southern city of Guangzhou told Rest of World that Pinhaofan had brought more business to her small noodle shop, but the “poor attitude” of riders had led to an increase in negative reviews for the shop as well as refund requests.

Chen said that in the past, Chinese delivery workers could choose to take on multiple orders if they found the payment, route, and deadlines acceptable — similar to how batched orders work on Uber Eats and DoorDash. But with the group-order feature, customers and the platform decide which orders should be delivered together. “It’s a way that the platform as a technological system takes the autonomy away from the workers,” Chen said. “[Customers] wouldn’t really think about the decrease in [pay] that would affect workers and, in turn, affect their customer experiences.”

While many delivery workers resent Pinhaofan, Wu said, they order the cheap meals themselves. Wu, who quit his Meituan gig in April, said he understands if the food takes a long time to arrive.

“We have worked as riders,” Wu said. “So we know how hard it is to deliver Pinhaofan.”


Viola Zhou is a Rest of World reporter based in New York City.

Sunday, June 02, 2024

Lethal Workplaces: Deaths on the Job Continue

 
MAY 31, 2024
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Photograph by Nathaniel St. Clair

The National Council for Occupational Safety and Health (National COSH) announced “The Dirty Dozen” employers of 2024 recently. Who are the Dirty Dozen? They are members of an employer class, a tiny minority of the population, which put the vast majority of workers and communities at-risk due to unsafe practices, leading to preventable illnesses, injuries and fatalities.

That is not all. Several of the Dirty Dozen also harass and retaliate workers who demand in deeds and words more safety on the job.

Jessica E. Martinez, MPH, is co-executive director of National COSH. “This is an exciting and challenging time for US workers,” she said in a statement. “It’s exciting to see a renewed interest in joining labor unions, participating in workers’ centers and connecting with advocacy campaigns. The challenge facing workers who are fighting for something better is that conditions in US workplaces are getting worse.

“The latest data show an increase in workplace fatalities, injuries and illnesses,” according to her. “An increasing number of children are being assigned to dangerous jobs, and the reality of climate change is bringing the risk of extreme heat to both indoor and outdoor workplaces.”

Consider this. Regular shade and water breaks for agricultural workers who harvest the food we eat is a labor standard that some employers neglect. The impacts of such maltreatment can and do result in death and illness among workers.

National COSH releases the “Dirty Dozen” each year to spotlight the real conditions in US workplaces. That is a direct way to back workers coming together to improve their lives and those of other working families.

The Dirty Dozen report comes out in observance of Workers’ Memorial Week, which took place this year from April 21 through April 28. This global event recalls workers who lost their lives on the job and their families and recognizes those suffering from occupational injuries and illnesses.

Worker victims of death on the job are born in and out of the US. For example, when a container ship, the Dali, hit Baltimore’s Francis Scott Key Bridge, the collision killed immigrant workers who were repairing the roads upon which businesses and households depend.

Local COSH groups, worker centers, unions, and worker leaders and advocates from across the country nominate employers for the Dirty Dozen list. Criteria range from the severity of safety risks to workers, to repeat and serious employer violations of safety standards and applicable laws.

The Dirty Dozen employers for 2024, are, listed alphabetically: Alabama Department of Corrections; Ascension; Black Iron/XL Concrete; Costa Farms; Florence Hardwoods, Mar-Jac Poultry and Onin Staffing; Space X and the Boring Company; Tyson Foods; Valor Security and Investigations; Uber and Lyft; Waffle House and Walmart, Inc.

For more information, please visit coshnetwork.org. Follow National Council for Occupational Safety and Health on Facebook, @NationalCOSH on Twitter and @NationalCOSH on Instagram.

Seth Sandronsky is a Sacramento journalist and member of the freelancers unit of the Pacific Media Workers Guild. Email sethsandronsky@gmail.com

Monday, May 20, 2024

Uber and Lyft say they’ll stay in Minnesota after Legislature passes driver pay compromise


Supporters of Minnesota legislation -- which would require ride-hailing companies to increase pay for drivers -- walk through the State Capitol building, holding signs that say “WE ARE COUNTING ON YOU” and shirts that say “MULDA Minnesota Uber/Lyft Driver Association,” in St. Paul, Minn.,, May 17, 2024. Uber and Lyft have said they will leave the state if Minnesota lawmakers pass legislation that requires the companies to raise driver pay by more than they want to. (AP Photo/Trisha Ahmed)


Dozens of protesters descend a staircase in the Minnesota State Capitol building in St. Paul, Minn., Friday, May 17, 2024, while holding signs and pushing for a law that would require ride-hailing companies – including Uber and Lyft -- to increase pay for drivers in the state. Uber and Lyft have said they will leave the state if Minnesota lawmakers pass legislation requiring the companies to raise driver pay by more than the companies want to. (AP Photo/Trisha Ahmed)

 May 20, 2024

ST. PAUL, Minn. (AP) — Uber and Lyft plan to keep operating in Minnesota after the state Legislature passed a compromise driver pay package, the companies said Monday.

The House passed the compensation bill but the measure was held up in the Senate before winning approval prior to the midnight Sunday deadline for lawmakers to pass bills before they adjourned. The bill now moves to Gov. Tim Walz to be signed into law, the Star Tribune reported.

The proposal was crafted by Democrats to replace a minimum pay measure the Minneapolis City Council passed that prompted Uber and Lyft to threaten to leave the state’s biggest city and the entire state.

The House agreement announced Saturday after weeks of negotiations would set a minimum pay rate at $1.28 per mile and 31 cents per minute. Uber and Lyft say they will keep operating in the state under those rates. The bill will take effect next January.

“While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor,” Uber spokesperson Josh Gold said in a statement.


A passerby walks past a sign offering directions to an Uber and Lyft ride pickup location at an airport, Feb. 9, 2021. (AP Photo/Steven Senne, File)

Minnesota Uber and Lyft driver pay package beats deadline to win approval in Legislature

Lyft said in a statement that Twin Cities rideshare drivers were already earning higher than the national median, something drivers have disputed, saying many earn less than the minimum wage. Lyft said the legislation balances “a new pay increase for drivers with what riders can afford to pay and preserve the service.”

The city’s plan that raised objections from the companies would have required them to pay drivers at least $1.40 per mile and 51 cents per minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporting passengers in Minneapolis.

Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that even though the pay rates are lower than drivers sought, they were happy to see the deal come together.

The governor said in a post on social media platform X that the deal “gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota.”

Sunday, May 19, 2024

Plan to boost Uber and Lyft driver pay in Minnesota advances in state Legislature

20 May 2024

Plan to boost Uber and Lyft driver pay in Minnesota advances in state LegislaturePlan to boost Uber and Lyft driver pay in Minnesota advances in state Legislature

ST. PAUL, Minn. (AP) — A plan to boost pay for Uber and Lyft drivers in Minnesota that lawmakers believe would prevent the companies from leaving the market advanced in the state Legislature on Sunday, hours before the deadline for lawmakers to pass bills before they adjourn.

The plan that gained approval in the House was crafted by Democrats to replace a minimum pay measure the Minneapolis City Council passed that prompted Uber and Lyft to threaten to leave the state's biggest city.

The agreement announced Saturday after a day of negotiations would set a minimum pay rate at $1.28 per mile and 31 cents per minute. Uber has said it will keep operating in the state under those rates. The bill would take effect next January if passed.

“While the coming price increases may hurt riders and drivers alike, we will be able to continue to operate across the State under the compromise brokered by the Governor," Uber spokesperson Josh Gold said in an email to the Star Tribune.

Lyft representatives didn't immediately respond to emailed questions from The Associated Press about the deal.

The measure the companies objected to would have required them to pay drivers at least $1.40 per mile and 51 cents per minute — or $5 per ride, whichever is greater — excluding tips, for the time spent transporting passengers in Minneapolis.

Marianna Brown, vice president of the Minnesota Uber/Lyft Drivers Association, told the Star Tribune that even though the pay rates are lower than drivers hoped for, they were happy to see the deal come together.

Minnesota Gov. Tim Walz said in a post on the social platform X that the deal “gives rideshare drivers a 20% raise and keeps these important services operating in Minnesota. I’m grateful to our partners in the House and Senate DFL for coming together to get this done."