Citadel Acquires Yellow Debt Owned by Apollo, Other Lenders

Jonathan Randles
Tue, August 15, 2023 



(Bloomberg) -- An affiliate of Ken Griffin’s Citadel has acquired roughly $485 million in Yellow Corp. debt previously owned by Apollo Global Management Inc. and other senior lenders to the bankrupt trucking firm, according to a person familiar with the matter.

The deal comes as Yellow seeks to secure a bankruptcy loan to fund its liquidation. Apollo and other senior lenders had offered to provide the company $142.5 million in new money to fund the trucking firm’s wind-down, but Yellow was approached with less expensive options after filing Chapter 11.

Apollo and other existing Yellow lenders won’t proceed with their proposed Chapter 11 loan as a result of the Citadel deal, the person said. A Yellow lawyer said last week it is considering alternative bankruptcy loans from hedge fund MFN Partners LP, the company’s largest shareholder, and rival trucking company Estes Express Lines.

A Citadel spokesman declined to comment. Lawyers representing Citadel Credit Master Fund LLC filed court papers Tuesday in Yellow’s bankruptcy. A representative for Apollo declined to comment.

The Financial Times first reported that Citadel acquired Yellow debt owned by Apollo and other lenders.

Yellow has said the alternative bankruptcy loans its considering are less expensive and will give the company more time to sell its valuable real estate portfolio and vast fleet of trucks and trailers. The Chapter 11 loan offered by funds managed by Apollo and other existing lenders carried 17% interest and higher fees.

The case is Yellow Corp. 23-11069, US Bankruptcy Court District of Delaware (Wilmington).

Apollo sells Yellow term loan to Citadel

Todd Maiden
Tue, August 15, 2023 

The provider of Yellow's bankruptcy financing could be announced on Thursday. (Photo: Jim Allen/FreightWaves)

Apollo Global Management has sold the term loan it held for Yellow Corp. and has withdrawn its proposal for bankruptcy financing, according to Financial Times.

Miami-based hedge fund Citadel has acquired Yellow’s $485 million debt from Apollo and other lenders. A Tuesday Delaware bankruptcy court filing showed counsel representing Citadel Credit Master Fund would depose representatives from Yellow on Wednesday regarding post-petition financing.

Apollo’s (NYSE: APO) debtor-in-possession (DIP) financing package was touted in bankruptcy filings as the only viable offer made to the less-than-truckload carrier in the days leading up to its Chapter 11 petition. The $142.5 million deal was expected to provide the company with the funds necessary to market and sell off its terminals and equipment.

The deal would have also provided the private equity firm with an improved lien position among secured creditors. It held first-lien position on the term loan as well as a better lien position than the U.S. Treasury, which is due $737 million from a 2020 COVID relief loan to the carrier.

However, representation for Yellow said last week that better offers came forward following the bankruptcy petition and that Apollo’s terms were too onerous. That deal carried a 17% interest rate, a $32 million closing fee and a 90-day window to liquidate the assets.

The frontrunners at the time included LTL carrier Estes Express Lines and Boston hedge fund MFN Partners, which acquired a 40% stake in Yellow’s stock in July. However, Yellow attorney Pat Nash said at a Friday hearing there had been “a number of inbounds from other parties” willing to provide new money in a junior position to existing creditors.

A Tuesday hearing, which could have potentially revealed the new DIP lender, was pushed backed to Thursday.

In recent days, company insiders have been selling restricted and other shares of Yellow ahead of the stock’s delisting on Wednesday.

MONARCHIST MILITARY JUNTA 

Court clears the way for Thai Parliament to pick a new prime minister 3 months after elections

LESE MAJESTIE

JINTAMAS SAKSORNCHAI
Wed, August 16, 2023 

 Srettha Thavisin, a real estate tycoon and advisor to the opposition Pheu Thai party, arrives at Pheu Thai Party headquater in Bangkok, Thailand, on July 17, 2023. The Pheu Thai party has since cobbled up a coalition consisting of nine parties which together holds 238 seats in the lower house, still short from the majority it needs. Pheu Thai has said it will nominate estate tycoon Srettha Thavisin, as prime minister. 

(AP Photo/Sakchai Lalit, File) 


BANGKOK (AP) — Thailand’s Constitutional Court cleared the way Wednesday for Parliament to vote for a new prime minister more than three months after national elections by declining to rule on a complaint over the rejection of the winning party's leader.

The court had been asked to decide whether Parliament had violated the constitution by refusing to allow the leader of the progressive Move Forward Party to be nominated for a second time as a prime ministerial candidate.

Party leader Pita Limjaroenrat had assembled an eight-party coalition with a majority in Parliament's lower house. But under the military-implemented constitution, a new prime minister must receive a majority of votes from both the elected House and the conservative appointed Senate, which was chosen by an earlier military government.

Pita lost a first vote in Parliament for prime minister last month, with many senators voting against him because of his party’s call for reform of a law that makes it illegal to defame Thailand’s royal family. Critics say the law, which carries a penalty of up to 15 years in prison, has been abused as a political weapon. Members of the Senate, like the army, see themselves as guardians of traditional conservative royalist values.


The combined Parliament then refused to allow Pita to be renominated for a second vote.

Several lawmakers from Pita's party and private citizens submitted a complaint to the state ombudsman charging that the action violated the constitution. The ombudsman relayed the complaint to the Constitutional Court, which dismissed the case on Wednesday on the grounds that the complainants had not been directly affected by Parliament’s decision and therefore were not entitled to submit the case before the court.

While the court’s decision suggested that Pita himself could file a petition seeking a ruling on the matter, Move Forward spokesperson Rangsiman Rome said Pita would not do so. He said Move Forward continues to strongly believe that Parliament can renominate a prime ministerial candidate, but that the issue should be resolved through parliamentary procedures, not the court.

After its two failed attempts, Move Forward stepped aside to allow its biggest partner in the eight-party coalition, the Pheu Thai party, to attempt to form a new government.

Pheu Thai, which finished second in the May polls, then excluded Move Forward from the coalition, saying its call to reform the royal defamation law made it impossible to gather enough support from other parties and the Senate to approve a new prime minister.

Pheu Thai has since cobbled together a coalition of nine parties with 238 seats in the 500-member lower house, still short of the majority it needs. It plans to nominate real estate tycoon Srettha Thavisin as prime minister.

Move Forward said Tuesday that its elected House members will not vote for a candidate from the Pheu Thai-led coalition. It said the coalition, which includes parties from the outgoing military-backed administration, had violated popular demand for political reform "that was clearly expressed through the election results.”

The results of May’s general election were a strong repudiation of the country’s conservative elites and reflected the disenchantment in particular of young voters who want to limit the political influence of the military, which has staged more than a dozen coups since Thailand became a constitutional monarchy in 1932.

Move Forward's stunning victory came after nearly a decade of military-controlled rule led by Prayuth Chan-ocha, who as army chief ousted a Pheu Thai-led government in a 2014 coup and returned as prime minister after 2019 elections.

Many believe that the current Pheu Thai-led coalition needs to include at least one of the two military-backed parties that were soundly rejected in the polls to achieve a House majority. Pheu Thai has not ruled out that possibility.

Pheu Thai is the latest in a string of parties affiliated with ex-Prime Minister Thaksin Shinawatra, a billionaire populist who was ousted in a 2006 military coup. Thaksin has said he plans to return to Thailand soon following years of self-imposed exile to escape a prison term in several criminal cases which he has decried as politically motivated.

Following the court’s decision, House Speaker Wan Muhamad Noor Matha told reporters on Wednesday that he plans to set the next voting for prime minister on Tuesday and will meet with parliamentary leaders on Thursday to discuss the matter.

Thai election winners reject plea to back ally's 'distorted' PM bid

Tue, August 15, 2023 

By Chayut Setboonsarng and Panarat Thepgumpanat

BANGKOK (Reuters) - Thailand's election-winning Move Forward Party declined on Tuesday to back former alliance partner Pheu Thai's bid to form the next government, calling it a distortion of the election outcome and against the will of the public.

The progressive Move Forward was the surprise winner of the May 14 election, closely followed by Pheu Thai, after the two trounced conservative parties in a resounding rejection of nine years of government led or backed by the military.

An alliance between them collapsed after a bicameral parliament over which the royalist military commands significant influence rejected Move Forward leader Pita Limjaroenrat's prime ministerial bid twice last month.

Thailand has been under a caretaker government for five months and Move Forward's refusal to back Pheu Thai could prolong months of political uncertainty exacerbated by the parliamentary deadlock.

"The formation of government now is not reflective of the people's voice ... and distorts the will of the people in the elections," Move Forward secretary general Chaithawat Tulathon told a news conference.

Political veteran Pheu Thai has been accused by critics of outmanoeuvring Move Forward to ensure it leads the government.

Pheu Thai insists it only withdrew its support when it was clear that Move Forward could not win the backing of the legislature, where it encountered resistance to its liberal, anti-establishment agenda.

Despite Pheu Thai's bitter history with the military, it has been lobbying hard for the support of parties and senators allied with generals involved in 2006 and 2014 coups against its governments.

"We do not want to have any part in the formation of government under these conditions," Move Forward's Chaithawat said.

Pheu Thai will nominate for prime minister Srettha Thavisin, a former real estate mogul with no political experience up until the election. To succeed, Srettha needs support from more than half of the joint lower and upper houses, an outcome far from certain.

Pheu Thai leader Cholnan Srikaew said he expected a prime ministerial vote between Aug. 18 and Aug. 22 and he was confident Srettha could still prevail without Move Forward's support.

"We respect Move Forward's decision and we are able to work with all parties," he said.

(Reporting by Chayut Setboonsarng and Panarat Thepgumpanat; Editing by Martin Petty)

Cops Say "Aliens" Attacking Amazonian Village Are Men With Jetpacks

Sharon Adarlo
Tue, August 15, 2023

Jet Set

Picture this: somebody has attacked an isolated indigenous village in rural Peru and tried to kidnap a 15-year-old girl. Locals claim it was aliens, as in little green men. But government officials investigating the strange incident say it's actually... drum roll... illegal miners on jetpacks.

It sounds like a game of Mad Libs gone awry, but this is an actual saga that's been unfolding since July in the Amazon in Northern Peru, according to Spanish-language news outfit RPP Noticias. 

Members of the Ikitu, an indigenous tribe, claim they've been beset by strange, levitating figures that are more than six feet in height and appear to easily deflect their weapons.

"These gentlemen are aliens," local leader Jairo Reátegui Ávila told the outlet. "They seem armored like the Green Goblin from Spider-Man. I have shot him twice and he does not fall, but rises and disappears. We are frightened by what is happening in the community,"

After the locals called for police protection, law enforcement investigators descended on the isolated area and concluded in Early August that it was in fact illegal miners using "high-tech equipment" — jet packs, which they say were intended to intimidate the locals — according to a followup report from RPP Noticias.

Really Though

The reality is that jetpacks are wildly loud, expensive, and impractical — oh, and they're incredible fuel hogs as well. We've never heard of them being used in legal mining operations, nevermind an illegal one.

And yet eyewitnesses insist they saw something. The jetpack story becomes more plausible when you read the eyewitness accounts of a teacher who saw the "aliens" try to kidnap a teenager on July 29.

"They would be using state-of-the-art technology, such as the thrusters that allow people to fly," local teacher Cristian Caleb Pacaya told RPP Noticias. "In this case too, according to Google, they are called 'jetpacks' (jetpacks). We have investigated that these gentlemen would be using this suit to reach those places."

It is true that the area attracts miners intent on extracting gold and other resources illegally, often resulting in terrible environmental damage and even violence. Is it theoretically possible they're using jetpacks? Sure. But it seems unlikely.

No matter the explanation, though, these incidents in the jungle — sounds like 1987's "Predator," right? — are sure to fuel even more speculation during a year when alien conspiracy theories have made the mainstream.

More on aliens: Harvard Professor Says Godlike Aliens May Be Creating Universes in Labs

Green investors are learning to live with carbon in a new ‘energy transition 2.0’ strategy that comes with caveats

Peter Vanham, Nicholas Gordon
Tue, August 15, 2023 at 4:31 AM MDT·2 min read

Dane Rhys—Bloomberg via Getty Images


Good morning, Peter Vanham here in Geneva.

Far away from the political gridlock in Washington, D.C., a new energy consensus is brewing in the U.S., including in its reddest and most fossil fuel-reliant states. It is one where all agree that “energy is energy, whether it is generated by wind, steam or whatever it might be,” as Dewey F. Bartlett Jr., a former oil and gas executive and former mayor of Tulsa, Oklahoma, told the New York Times recently.

The emerging middle ground looks something like this: advocates of renewable energy acknowledge that fossil fuels will remain in the mix for decades to come to allow for an orderly and affordable transition to cleaner sources of energy. Companies that are very carbon-intensive, meanwhile, do their part to get on a pathway to “net zero” by 2050, but in the meantime can bank on techniques such as carbon capture and storage, which allow for the continued use of fossil fuels.

“The early days of the green transition being focused on green solutions and renewables—I very much believe that was energy transition 1.0,” Megan Starr, global head of impact at Carlyle, told me in an interview yesterday. “Energy transition 2.0 is a recognition that we need all of the clean solutions, but we also need to decarbonize the rest of the economy at the same time.”

At Carlyle, one of America’s largest private equity companies, this “2.0” approach to decarbonization means that the company still invests in businesses that are carbon intensive. But these companies must do two things: first, set long-term emissions targets in line with the international Paris climate accord. And second, find new avenues of business growth in a decarbonized economy.

One beneficial outcome of that approach, Starr told me, is that it allows for a world where “energy security and transition are not in conflict.” Another is that it prevents entire industries and human capital from becoming obsolete. Since embarking on its new strategy, Starr said, Carlyle worked with 22 carbon-intensive businesses to set “Paris-aligned” goals. “They’re investing in hydrogen, carbon capture and storage, and sustainable aviation fuels. They use the infrastructure that they have, and see how it can become part of new-age energy solutions.”

But perhaps the greatest benefit is that the approach is a solution to both the political division around the energy question and the emergency of the climate crisis. That is, of course, if it works.

Invasive yellow-legged hornet spotted in continental U.S. for first time

Simrin Singh
Updated Wed, August 16, 2023

A new invasive species has been spotted in the U.S. for the first time. A living yellow-legged hornet, also known as an Asian hornet, was detected in Georgia, which state officials say could cause damage to its agricultural industry if left uncontrolled.

The Georgia Department of Agriculture said Tuesday the discovery has the potential to threaten honey production and native pollinators.

Earlier this month, a Georgian beekeeper discovered and reported the insect to the state. The yellow-legged hornet's identity was then confirmed by the U.S. Department of Agriculture's Animal and Plant Health Inspection Service.

An Asian hornet (Vespa velutina) flies on Sept. 14, 2019, in Loue, France. / Credit: JEAN-FRANCOIS MONIER/AFP via Getty Images

"Georgians play an important role helping GDA identify unwanted, non-native pests, and I want to thank the beekeeper who reported his sighting to us," said Georgia Agriculture Commissioner Tyler Harper in a statement. "Our experienced team of professionals will continue to assess the situation and are working directly with USDA APHIS and UGA to trap, track, and eradicate the yellow-legged hornet in Georgia. "

The next step for officials will be to set up traps to find out if there are more of these pests in the area. If they are able to find a colony, it will be destroyed, Georgia agriculture officials said. The hornet that has already been identified will be DNA tested so that scientists can determine whether the insect originated from Europe of Asia.

The yellow-legged hornet, which is identified as a social wasp species, is native to tropical and subtropical areas of Southeast Asia, and is also established in much of Europe, parts of the Middle East, and parts of Asia where it is not native.

The insect builds egg-shaped nests, often in trees, and can host up to 6,000 worker hornets.

The press release emphasized how important public reports of the insect will be in its eradication efforts. The GDA encourages people to take photos of any insects they believe to be yellow-legged hornets and file a report here. However, it is important to exercise caution around the hornets as they can be dangerous, the department said.

In 2019, a relative of the yellow-legged hornet — the "murder hornet," or Asian giant hornet — caused alarm after being found in Washington state. The invasive insects, which are now called northern giant hornets, were feared also because of their ability to rapidly kill domestic honeybee and hornet species. Washington state eradicated a giant nest of nearly 1,500 murder hornets in 2021.

California Democrats urge Gavin Newsom to give state worker union a contract and raises

Maya Miller
Tue, August 15, 2023 

Hector Amezcua/hamezcua@sacbee.com


As contract bargaining heats up across the state, the chairs of California’s statehouse committees on labor and public employment have called on Gov. Gavin Newsom to bargain fairly with the largest public employee union in state government.

Assembly Labor and Employment Committee Chair Ash Kalra, along with the chairs of the Assembly and Senate committees on public employment and retirement, wrote to Newsom urging his administration to reach a contract agreement with SEIU Local 1000 this week.

The union represents more than 96,000 state employees in positions as diverse as business analysts, nursing home evaluators, prison librarians and teachers at the state schools for the deaf and the blind. They’ve been bargaining with the state since April, and their previous contract expired at the end of June.

“It is unacceptable that the state workers who make up the backbone of our departments, providing crucial public services to millions of Californians, are struggling to pay their bills as they are offered pre-pandemic wages in contract negotiations,” said Kalra in a statement Monday. The San Jose Democrat criticized the state for “needless delays” and said the lengthy bargaining timeline could increase the risk of workers “falling into dire financial situations.”

The California Department of Human Resources, which represents Newsom’s administration at the bargaining table, cannot comment on contract negotiations while talks are still underway, said department spokesperson Camille Travis.

“CalHR is working in good faith with SEIU Local 1000 at the bargaining table to reach an agreement that meets both the union’s interests and the State’s priorities,” Travis wrote in an emailed statement.

The letter was co-authored by Assemblymember Tina McKinnor, an Inglewood Democrat who chairs the Assembly committee on public employment and retirement, and Sen. Dave Cortese, a Santa Clara Democrat who chairs the same committee in the Senate. It urged Newsom to quickly reach a deal that would give adequate raises to public workers who play crucial roles in implementing his administration’s goals, such as combating climate change, providing health care and improving transportation infrastructure.

The union originally asked for a 30% raise over a three-year contract. State negotiators initially countered with 6% over that same time frame, which union leaders called “offensive” and “disrespectful” to members. Late last week, the state bumped the offer up to 8%, according to a Local 1000 update.

State workers have repeatedly said that stagnant wages are eroding the sense of security and stability that used to come with careers in state civil service. A recent study commissioned by Local 1000 and conducted by the UC Berkeley Labor Center showed many members were struggling financially, particularly women, Black and Latino employees. Workers also say they’re worried about how they’ll cover the planned increase in CalPERS health premiums next year.

“The small cost of living adjustments your Administration has offered as a salary increase per year fails to cover workers’ basic needs and would roll back wages to pre-pandemic status,” the letter stated.

Lawmakers have until early September to approve deal

The call to action, co-signed by 21 assemblymembers and five senators, came as lawmakers returned from recess for the last stretch of the legislative session.

The authors argue that if the administration doesn’t deliver a deal before the Legislature’s Sept. 1 deadline for fiscal committees to meet and report bills to the floor, then union members could be left without raises until lawmakers reconvene in January and vote to fund the contract.

In 2019, the last time Local 1000 negotiated a contract, the union and the state reached an agreement on Aug. 29 — two days before the fiscal committee deadline on Aug. 31. Negotiations in 2016 extended well into the fall and led to a planned one-day strike in December. The work stoppage was eventually called off after union leaders reached a deal that workers approved in mid-January.

Teamsters add their heft to dozens of Amazon delivery drivers picketing around the country

Workers picket outside an Amazon distribution center on Monday, July 24, 2023, in Palmdale, Calif. Dozens of Amazon drivers and dispatchers who work for a California-based delivery firm the Teamsters unionized in April have been picketing company warehouses, calling on the e-commerce behemoth to come to the table and bargain over pay and working conditions. 

Brandi Diaz pickets outside one of the Amazon's distribution centers Monday, July 24, 2023, in Palmdale, Calif. Dozens of Amazon drivers and dispatchers who work for a California-based delivery firm the Teamsters unionized in April have been picketing company warehouses, calling on the e-commerce behemoth to come to the table and bargain over pay and working conditions. 

Workers who unionized with the Teamsters picket outside one of the Amazon's distribution centers Monday, July 24, 2023, in Palmdale, Calif. Dozens of Amazon drivers and dispatchers who work for a California-based delivery firm the Teamsters unionized in April have been picketing company warehouses, calling on the e-commerce behemoth to come to the table and bargain over pay and working conditions.
Workers picket outside one of the Amazon's distribution centers on Monday, July 24, 2023, in Palmdale, Calif. Dozens of Amazon drivers and dispatchers who work for a California-based delivery firm the Teamsters unionized in April have been picketing company warehouses, calling on the e-commerce behemoth to come to the table and bargain over pay and working conditions. 

A sign rests on a chair as workers who unionized with the Teamsters picket outside one of the Amazon's distribution centers on Monday, July 24, 2023, in Palmdale, Calif. Dozens of Amazon drivers and dispatchers who work for a California-based delivery firm the Teamsters unionized in April have been picketing company warehouses, calling on the e-commerce behemoth to come to the table and bargain over pay and working conditions.

AP Photos/Marcio Jose Sanchez

HALELUYA HADERO
Wed, August 16, 2023 

NEW YORK (AP) — The Teamsters flexed their muscles during contract negotiations with UPS last month, securing pay hikes for drivers and scoring other wins.

But at Amazon, the picture looks much different.

Since late June, dozens of Amazon drivers and dispatchers who work for a California-based delivery firm that the Teamsters unionized in April have been picketing company warehouses as far out as Michigan and Massachusetts, calling on the e-commerce behemoth to come to the table and bargain over pay and working conditions.

Amazon has essentially said no. Teamsters say the strike will continue until Amazon reinstates the employees and comes to the bargaining table.

Though small, the dispute in California signals what’s poised to be the next battlefront in Amazon’s efforts to fend off organized labor and the Teamsters’ years-long aim to take on one of their most formidable opponents.

During speeches and interviews in recent months, Teamsters General President Sean O’Brien has aired his belief that a strong UPS contract would also bolster the union’s organizing prospects at Amazon, where the sole labor group — made up of current and former warehouse workers who won a union election last year — is still without a contract amid objections and appeals from the company.

“Workers at Amazon are paying attention to the workers at UPS right now,” said Randy Korgan, who was appointed by O’Brien last year to lead the union’s recently launched Amazon division. “These are similar workers that look just like them — doing very similar work to what they’re doing.”

The set-up at Amazon, however, is much different. Though the delivery drivers are clothed in the ubiquitous gray-blue Amazon vests and drive similarly colored vans, they’re not directly employed by the company. Instead, they work for the more than 3,000 delivery service partners, or DSPs, that Amazon has recruited to drop off packages to customers.

Amazon’s business model originally relied heavily on other carriers, including UPS and the U.S. Postal Service where unions had major sway on pay and working conditions. But in the past few years, it has been reducing its dependence on other shippers and expanding its own logistics capability.

Most Amazon shipments these days go through the company’s own last-mile network, the final leg of a delivery that relies on DSPs that handle more than 10 million Amazon packages everyday. Outsourcing the work allows Amazon to eschew financial and legal liability that might come from directly employing hundreds of thousands of drivers. It also gives the retailer more cover from unionization attempts since the workers aren’t classified as Amazon employees under existing labor law.

The Teamsters are seeking to challenge that in California. In a complaint filed in May with the National Labor Relations Board, the union argued Amazon should be considered a single or joint employer with Battle Tested Strategies, a DSP that employs more than 80 delivery drivers and dispatchers. The Teamsters maintain that Battle Tested Strategies belongs to a system that’s “owned and controlled” by Amazon.


Amazon claims the union is spreading a false narrative about how its business works. The company also said that it terminated Battle Tested Strategies even before its workers unionized, accusing it of six breaches of contract, including failing to pay for insurance. Battle Tested Strategies — one of many DSPs that operate in California — stopped delivering for Amazon in late June.

Johnathon Ervin, an Air Force veteran who owns Battle Tested Strategies, said he applied for Amazon’s delivery program in 2018 and launched his business the next year after months of training. Initially, he got five vans from the company and began deliveries in El Monte, a city in Los Angeles roughly 60 miles south of Palmdale, where the firm is located.

Ervin said it was exciting at first, but it soon became challenging as his business grew and costs crept up for vehicle maintenance, insurance and other things like overtime pay during peak seasons. Amazon gives delivery firms a pot of money to cover expenses for every route they’re given, but he said it didn’t cover everything, like all overtime expenses for workers.

Figuring out how to be profitable also became a headache. The company installs devices in vans that monitor drivers’ habits, and issues a weekly scorecard rating their performance on things like delivery completion from a scale from poor to “fantastic plus.” Those ratings determine how much DSPs make per package, but Ervin said the way Amazon assess drivers and the way delivery firms do might not always line up.

“It’s a really insidiously data driven-control that they use to manipulate and move folks in the direction that they want them to go,” he said.

Amazon spokesperson Mary Kate Paradis countered DSP rates vary by location across the country and the vast majority or those surveyed “say they’re within or above the projected profitability range of $75,000 and $300,000 per year.” In response to Ervin’s claims about failing to pay for overtime expenses, Paradis said DSPs are responsible for paying their employees.

The Teamsters seem to be taking a long-term approach to organizing at Amazon. In the past few years, the union has been pushing back on Amazon projects in local communities and questioning the company’s federal contracts, among other things.

John Logan, director of labor and employment studies at San Francisco State University, said focusing on subcontractors is also a good starting point for the Teamsters because its easier to organize those firms compared to larger Amazon warehouses.

But he also noted the union’s campaign still seems somewhat underdeveloped because it's been focused on getting a good contract at UPS. The Teamsters' only other Amazon union victory was short-lived: In 2017, delivery drivers in Michigan who worked at a company that contracts with Amazon voted to organize. But Amazon dissolved their contract shortly thereafter.

“Amongst other groups and younger people in the labor movement... they are very enthusiastic about the idea about not only organizing Amazon, but that there’s a very powerful union that’s prepared to put resources into that,” Logan said. “But it hasn’t happened yet. So we don’t really know.”

Michigan pipeline standoff could affect water protection and Indigenous rights across the US

Mike Shriberg, Professor of Practice & Engagement, School for Environment & Sustainability, University of Michigan
Wed, August 16, 2023 

THE CONVERSATION

A ferry arrives at Mackinac Island in the Straits of Mackinac, Michigan's largest tourist draw. AP Photo/Anick Jesdanun

Should states and Indigenous nations be able to influence energy projects they view as harmful or contrary to their laws and values? This question lies at the center of a heated debate over Enbridge Energy’s Line 5 pipeline, which carries oil and natural gas across Wisconsin and Michigan.

Courts, regulatory agencies and political leaders are deciding whether Enbridge should be allowed to keep its pipeline in place for another 99 years, with upgrades. The state of Michigan and the Bad River Tribe in Wisconsin want to close the pipeline down immediately.

My expertise is in Great Lakes water and energy policy, environmental protection and sustainability leadership. I have analyzed and taught these issues as a sustainability scholar, and I have worked on them as the National Wildlife Federation’s Great Lakes regional executive director from 2015 until early 2023.

In my view, the future of Line 5 has become a defining issue for the future of the Great Lakes region. It also could set an important precedent for reconciling energy choices with state regulatory authority and Native American rights.

A Canadian pipeline through the US Midwest

Line 5, built in 1953, runs 643 miles from Superior, Wisconsin, to Sarnia, Ontario. It carries up to 23 million gallons of oil and natural gas liquids daily, produced mainly from Canadian tar sands in Alberta.

Most of this oil and gas goes to refineries in Ontario and Quebec. Some remains in the U.S. for propane production or processing at refineries in Michigan and Ohio.

Controversy over Line 5 centers mainly on two locations: the Bad River Band Reservation in Wisconsin, where the pipeline crosses tribal land, and the Straits of Mackinac (pronounced “Mackinaw”) in Michigan. This channel between Michigan’s upper and lower peninsulas connects Lake Michigan and Lake Huron.

Enbridge’s Line 5 pipeline from Superior, Wisconsin, to Sarnia, Ontario, is part of a larger regional pipeline network. Enbridge, CC BY-ND

Line 5 crosses through the open water of the straits in twin pipelines that rest on the lake bottom in some stretches and are suspended above it in others. The route lies within an easement granted by the state of Michigan in 1953.

The Straits of Mackinac are one of the most iconic settings in the Great Lakes. They include hundreds of islands and miles of shorelines rimmed with forests and wetlands. Scenic Mackinac Island in Lake Huron, a popular resort area since the mid-1800s, is Michigan’s top tourist destination.

The straits also have long been spiritually important for Great Lakes tribes. Michigan acknowledges that the Chippewa and Ottawa peoples hold treaty-protected fishing rights that center on the Mackinac region.
The Line 6b spill

In 2010, another Enbridge pipeline, Line 6b, ruptured near the Kalamazoo River in southern Michigan, spilling over 1 million gallons of heavy crude. Line 6b is part of a parallel route to Line 5, and the cleanup continues more than a decade later.

The spill, and Enbridge’s slow, bungled response and lack of transparency, led to scrutiny of other Enbridge pipelines, including Line 5.

In a 2014 analysis, University of Michigan oceanographer David J. Schwab concluded that the Straits of Mackinac were the “worst possible place” for a Great Lakes oil spill because of high-speed currents that were unpredictable and reversed frequently. Within 20 days of a spill, Schwab estimated, oil could be carried up to 50 miles (80 kilometers) from the site into Lakes Michigan and Huron, fouling drinking water intakes, beaches and other critical areas.


This and other research intensified a burgeoning advocacy campaign by pipeline opponents, including regional and national environmental organizations, Indigenous leaders and advocates, and a newly formed network of local and regional businesses.

Pipeline supporters include the American Petroleum Institute and others in the fossil fuel industry, many conservative lawmakers, several key labor unions and the government of Canada. They argue that the current pipeline is safe, violates no federal laws and is a key piece of infrastructure that helps keep energy costs low.
Michigan revokes its easement

After years of scrutiny, including the formation of the Michigan Pipeline Safety Advisory Board and two expert reports commissioned by the state, analyses showed that Enbridge was violating provisions of its easement. Most notably, the section of Line 5 that ran under the straits lacked proper anchors and coating, increasing the threat of a rupture. The state concluded that the easement violated the public trust doctrine – the idea that government should protect certain natural resources, including waterways, for public use.

State reports concluded that the highest risk for rupture was from anchor strikes. Environmental nongovernment organizations found that Line 5 had already leaked more than 1 million gallons of oil and natural gas liquids. On April 1, 2018, a boat anchor struck the pipeline and nearly ruptured it, temporarily shutting it down.

In 2019, Gov. Rick Snyder was succeeded by Gretchen Whitmer, who pledged in her campaign to close Line 5. Seeking to avert a shutdown, Enbridge proposed building a tunnel beneath the lake bed to protect the pipeline.

But after more analysis and another anchor strike that temporarily shut down the pipeline again, Whitmer issued an order in November 2020 revoking Enbridge’s easement and giving the company six months to close Line 5. The state sought a court order to support its decision.
Challenging state and tribal authority

Instead of accepting state orders, Enbridge resisted. The company argued that Michigan lacked authority to tell it how to manage the pipeline; that the project had not required an easement in 1953; and that building the tunnel would mitigate any risks.

Enbridge sued Michigan in federal court, arguing that pipeline safety regulation was a federal issue and that the state had no authority to intervene in what was essentially international commerce.

Enbridge also faced pressure from the Bad River Tribe in Wisconsin, where some 12 miles of the pipeline runs through the Bad River Band reservation and across the Bad River. Enbridge’s easement on parts of the reservation expired in 2013, and in 2017 the tribal council voted to evict Enbridge from their land, calling the pipeline a threat to the river and their culture.

When Enbridge continued operating Line 5, the tribe sued the company in federal court in 2019, charging it with trespass, unjust enrichment and other offenses, and sought to get the pipeline closed.

Today, Michigan’s case against Enbridge is bogged down in jurisdictional battles. But on June 16, 2023, the federal judge overseeing the Bad River case ruled largely in favor of the tribe and ordered Enbridge to stop operating the pipeline on tribal land within three years. Enbridge vowed to appeal the ruling, but is also seeking permits for a 41-mile reroute of Line 5 around the reservation.

Canada’s prime minister, Justin Trudeau, shown welcoming U.S. President Joe Biden to Ottawa on March 24, 2023, strongly supports Line 5, which carries Canadian oil and gas. AP Photo/Andrew Harnik

A national precedent

Line 5 is more than a Midwest issue. It has become a focus for national activism and is a major diplomatic issue between Canada and the U.S. President Joe Biden, who has worked to balance his ties with organized labor and his support for a clean energy transition, has avoided taking a side to date.

To continue operating Line 5, Enbridge will have to convince the courts that its interests and legal arguments outweigh those of an Indigenous nation and the state of Michigan. Never before has an active fossil fuel pipeline been closed due to potential environmental and cultural damage.

The outcome could set a precedent for other pipeline and fossil fuel infrastructure battles, from the mid-Atlantic to the Pacific Coast. Ultimately, in my view, Line 5 is an under-the-radar but critical proxy battle for how, when and under what authority the phasing out of fossil fuels will proceed.

This article is republished from The Conversation, an independent nonprofit news site dedicated to sharing ideas from academic experts. 

It was written by: Mike Shriberg, University of Michigan.

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Mike Shriberg previously served from 2015-2022 as the Great Lakes Regional Executive Director for the National Wildlife Federation, where his position included grant and donor funding to work on issues related to the Line 5 pipeline. He also served as a gubernatorial appointee under former Gov. Rick Snyder to the Michigan Pipeline Safety Advisory Board.

Scientists recreate an iconic Pink Floyd song by scanning listeners' brains

The research looked at how brains interact with music.

Sarah Fielding
Wed, August 16, 2023 

BlackJack3D via Getty Images

You know when a certain song comes on and it encompasses your whole being for a few minutes? Music has a way of causing a unique and engaging stimulation in your brain, one that scientists are working to understand and mimic. Such was the case in a recent study published in PLOS Biology in which researchers successfully implemented technology that recreated Pink Floyd’s Another Brick in the Wall, Part 1 solely using brain activity. It utilized a technique known as stimulus reconstruction and built on previous innovations allowing researchers to recreate a song akin to the one a person had heard.

The 29 participants had pharmacoresistant epilepsy and intracranial grids or strips of electrodes which had been surgically implanted to aid in their treatment. Researchers utilized these electrodes to record activity across multiple auditory regions of the individuals’ brains that process aspects of music like lyrics and harmony — while the participants actively listened to Another Brick in the Wall, Part 1. The entirety of the recordings took place at Albany Medical Center, in upstate New York.

Scientists used AI to analyze then create a copy of the words and sounds participants had heard. Though the final product was quite muffled, but the song is clear to anyone listening so you can check it out for yourselfa. The researchers are also confident that they could increase its quality in future attempts.

The listening experience primarily engaged the right side of participants’ brains, mostly in the superior temporal gyrus and especially when absorbing unique music. There was also a small level of stimulation in the left side of the brain. Researchers further found that a point in the brain’s temporal lobe ignited when the 16th notes of the rhythm guitar played while the song played at 99 beats per minute.

This finding could provide more insight into the part that area plays in processing rhythm. It could also aid in restoring people who have lost their speech ability, through conditions like amyotrophic lateral sclerosis (ALS). Instead of creating a monotone, almost robot-like response, better understanding the way a brain processes and responds to music might lead to more fluid prosthetics for speech.

US Jews urged to condemn Israeli occupation amid Netanyahu censure

Chris McGreal in New York
Tue, August 15, 2023 

Photograph: Reuters

Hundreds of Israeli and American public figures have called on US Jewish groups to speak out against the occupation of the Palestinian territories as “the elephant in the room” of Prime Minister Benjamin Netanyahu’s deeply divisive judicial reforms.

The statement has drawn international attention because of the prominent Israelis who have signed its forthright declaration that “Palestinians live under a regime of apartheid”, including the renowned Israeli historian Benny Morris, and the former speaker of the Israeli parliament, Avraham Burg.

The open letter, which has gathered more than 1,500 signatories since it was released a week ago, comes amid months of mass demonstrations in Israel against Netanyahu’s legislation to weaken the power of the judiciary, widely seen as a battle for the country’s soul. Israeli protesters have drawn support from several major Jewish groups in the US, which have criticised the legal changes as designed to help Netanyahu evade prosecution for corruption – and for rightwing members of his government to weaken individual rights, particularly for women, Arabs, and secular or religiously liberal Jews.

But the statement said Jewish American leaders have failed to speak out on “the ultimate purpose” of the judicial overhaul to “annex more land, and ethnically cleanse all territories under Israeli rule of their Palestinian population”.

“American Jews have long been at the forefront of social justice causes, from racial equality to abortion rights, but have paid insufficient attention to the elephant in the room: Israel’s longstanding occupation that … has yielded a regime of apartheid,” the statement says.

The open letter urges “leaders of North American Jewry” to support the Israeli protest movement while embracing equality for Palestinians who “lack almost all basic rights, including the right to vote and protest”.

“There cannot be democracy for Jews in Israel as long as Palestinians live under a regime of apartheid, as Israeli legal experts have described it,” it says.

The signatories include Israelis, Palestinians, Jewish American academics, religious leaders, musicians and lawyers.

Related: ‘Apartheid state’: Israel’s fears over image in US are coming to pass

The statement in part reflects a concern among some protesters that if they are successful in blocking the judicial changes, Israel will return to the cycle of governments maintaining occupation without end and expanding annexation by stealth, including settlement expansion.

“The problems did not start with the current radical government: Jewish supremacism has been growing for years and was enshrined in law by the 2018 Nation State Law,” it says.

The statement notes that the controversial judicial reforms are being driven in part by “American Jewish billionaire funders” supporting the Israeli far right. In March, a Labour party member of the Israeli parliament, Rabbi Gilad Kariv, travelled to New York to call on Jewish groups to stand up to “rightwing forces in the Jewish community in America and ultra-right players” who, he said, were driving a political coup in Israel.

The judicial reforms were designed by an ultra-conservative thinktank, the Kohelet Policy Forum. Two American billionaires, Arthur Dantchik and Jeffrey Yass, who made their fortunes in part by investing in TikTok, were major funders. Earlier this month, Dantchik said he would no longer donate to Kohelet because Israel has become “dangerously fragmented”.

The statement calls on American Jewish groups to “support human rights organisations which defend Palestinians” and to back an overhaul of the Israeli education system “to provide a more honest appraisal of Israel’s past and present”.

It says they should also “demand from elected leaders in the United States that they help end the occupation, restrict American military aid from being used in the Occupied Palestinian Territories, and end Israeli impunity in the UN and other international organisations”.

The letter echoes calls made by a growing number of politicians and former diplomats, including Democratic senator Chris Van Hollen, who told the Guardian earlier this month that Biden should reassess US assistance to prevent it from being used to facilitate annexation of the West Bank and oppression of the Palestinians.

The open letter adds: “No more silence. The time to act is now.”

Another group of Israelis, including two former military chiefs of staff, an ex-director of military intelligence and a former member of parliament, placed an advertisement in the New York Times on Sunday warning the US-based World Jewish Congress that it is being “misled” by Netanyahu.