It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Thursday, October 03, 2024
ILA Goes On Strike for the First Time Since 1977
ILA protestors in June 2024 showing support for union leadership (ILA)
The International Longshore Association has launched its first strike in nearly 50 years. After months of warnings, the group's 45,000 members began a walkout at midnight Eastern Time, shutting down operations at 36 ports from Texas to Maine. The ILA cast the shutdown in existential terms, warning that terminal operators would cut jobs and introduce more automation if the union didn't prevent it.
“The ILA is fighting for respect, appreciation and fairness in a world in which corporations are dead set on replacing hard-working people with automation,” the ILA said in a flyer distributed to its picketers. “Robots do not pay taxes and they do not spend money in their communities.”
After pressure from the Biden administration and trade groups, word leaked out late on Monday that there had been contact between the sides raising a final glimmer of hope for progress. The employers represented by the U.S. Maritime Alliance (USMX) are reported to have raised their offer, leading to some talk between the sides - but not enough to stave off a strike.
The ILA’s stance, according to The Wall Street Journal was that it would not begin negotiations until the employers agree to a 77 percent increase in wages for the new six-year contract. The master contract will also have to tackle issues regarding automation at the ports, benefits, and work rules. The employers represented by the U.S. Maritime Alliance (USMX) were believed to be standing at an offer of an approximately 40 percent wage increase and maintaining the prior rules regarding automation.
A leaked internal memorandum from USMX appears to show the offer was increased to "nearly 50 percent" but USMX asked for an extension to complete the deal.
Union President Harold Daggett said that blame for the strike lies with the USMX, while the employers had repeatedly said they were ready to start negotiations. The union says USMX “refuses to address a half-century of wage subjugation,” while citing the profits made by carriers, especially during the surge in shipping during and after the pandemic.
“The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA longshore workers an unacceptable wage package that we reject,” the ILA said in its final statement before the strike. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”
The ILA refused media interviews on Monday. It also declined to provide details on when and where the picketing would begin only saying that members would walk off at 12:01 am on October 1.
As late as Friday in an update to customers, Maersk said it was mostly still accepting bookings as normal. The exceptions include bookings for refrigerated containers outbound from inland locations via the U.S. Atlantic and Gulf Coast. Analysts have said imports and exports of perishables would be the first to feel the impact of the strike, potentially leading to shortages of items like bananas and cherries initially.
As the strike goes on, analysts point to an impact on raw materials and industrial goods, vehicles, and later consumer goods. Some items such as imported alcohol, wine, and beer would likely first be impacted and later broader lines of consumer goods. The expectation is that retailers have stockpiled inventories ahead of the anticipated strike but some importers are already talking of flying goods at higher cost, which is likely to be passed on to the consumer.
The expectation is that carriers will initially anchor vessels. Companies such as Ocean Network Express (ONE) and Maersk have said they would anchor their ships and review their status daily. The ILA has promised not to stop military cargo and passenger shipping. Tankers and bulkers use different terminals not covered under the ILA contract.
Analysts vary on the cost of the strike to the U.S. economy. CNN cites a Michigan-based research firm, Anderson Economic Group, saying the direct costs of a one-week strike could be about $2.1 billion. Analysts at JP Morgan and Jefferies have set the total cost to the economy in the range of $3 to $4.5 billion a day. Some estimates are as high as $5 billion per day.
The Biden administration's position continues to be that it is a collective bargaining issue and that it would not invoke its power to impose a cooling-off period or mediation. After speaking with both sides last week, reports are the administration was encouraging the employers to improve their offers over the weekend while publicly calling for resuming talks and a quick resolution.
ILA Declares “Ports Are Ours” as Leaders Threaten Strike “Will Cripple You"
ILA members hit the picket lines at 12:01 a.m. on October 1 (ILA)
The leadership and rank-and-file membership of the International Longshoremen’s Association were fired up in the first hours of their first coastwide strike in nearly 50 years. An estimated 25,000 or more members hit the picket lines from Maine to Texas as carriers and shippers scrambled with their contingency plans and President Joe Biden put out a statement in support of the union calling for a quick resolution.
The ILA in its official statement said it rejected U.S. Maritime Alliance’s final proposal made on Monday, which USMX said called for a nearly 50 percent wage increase. “The USMX last offer fell far short of what ILA rank-and-file members are demanding in wages and protections against automation,” the union declared in its statement.
Union President Harold Daggett put out a video threatening to “cripple you,” lecturing on the nature of port operations. He said it is time for the carriers and their terminal companies to share their massive profits made during the pandemic with the dockworkers. He is demanding the companies “compensate the American LIA longshore workers who perform the labor that brings them their wealth.”
“We are prepared to fight as long as necessary to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” said Daggett.
Government officials sought to downplay the short-term impact saying that businesses were well stocked and prepared for the strike. They said there should be little immediate impact on consumers while others such as The Conference Board issued more dire warnings that the strike would “paralyze U.S. trade.”
Port officials varied but the executive director of the Port Authority of New York and New Jersey said nearly 100,000 containers are waiting to be offloaded in the NY/NJ port area. He said 35 ships had been scheduled to arrive in the coming week.
Broad support is being voiced for the strikers. The Teamsters union which represents drivers among others highlighted its support while reminding members “Teamsters do not cross picket lines.”
President Joe Biden issued a statement reiterating his belief in collective bargaining. He said he had urged USMX to “come to the table,” and to present a fair offer to ensure dockworkers are paid appropriately. He also said they would be monitoring the situation including looking for any price gouging activity that benefits foreign ocean carriers.
“It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well,” said Biden highlighting the record profits of the foreign-owned carriers. “Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits.”
Harold Daggett doing interviews at the start of the strike (ILA)
Daggett speaking on CNN however praised Acting Labor Secretary Julie Su saying she had “knocked down doors” and was trying to settle the contract dispute. He said she was trying to get fair negotiations.
While the administration is vowing not to act, expectations are that the pressures will mount if the strike drags on. Daggett said they would choke off vehicle deliveries, raw materials for construction, and other supply chains resulting in layoffs in other industries. He asserts people do not know what a strike is today.
“We expect the strike itself to last for five to seven days until a government intervention... but the ripple effect is likely to be felt across the whole networks into Europe, into Asia for at least into January, February," said Peter Sand, chief analyst at Xeneta.
Maersk issued an advisory last night telling customers that they should hold on to empty containers until the strike was over. They said Maersk did not have arrangements for empty storage space and advised customers to speak with the representatives about shipping alternates. More carriers have also announced additional fees. CMA CGM immediately invoked Force Majeure imposing fees on refer boxes and truck chassis but suspending D&D charges and extending free time.
USMX representing the employers responded Tuesday afternoon saying its last offer of a nearly 50 percent wage increase "demonstrated a commitment to doing our part to end the completely avoidable ILA strike." It said it was "looking forward to hearing from the union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”
Cranes stand still as US dockworkers fight for ‘future’
Shipping containers are stacked as dockworkers are on strike in Port Newark on October 1, 2024 in New Jersey - Copyright AFP Bryan R. SMITH
Elodie MAZEI
Just a short drive from the New York skyline, giant cranes, containers, and machiney stand motionless behind closed gates.
The International Longshoremen’s Association (ILA), 85,000 members strong, has launched its first strike since 1977 after weeks of deadlocked negotiations over a six-year labor agreement.
“It’s not just money, it’s our future,” declared Herbert Hall, a 76-year-old vice president of the dockworkers’ union.
Speaking from a picket line outside the APM terminal in Elizabeth, New Jersey, he raises his voice over blaring music and honking traffic.
“We’re talking about machines, artificial intelligence, and all that stuff. We want job security.”
The port, like dozens along the East Coast and Gulf of Mexico, has ground to a halt.
Around 400 strikers have gathered, some lounging in camping chairs, sipping coffee, and enjoying free burgers from a food truck.
Union logos adorn their jackets and T-shirts, while picket signs voice their concerns: “Machines don’t feed families,” “Profit over people is unacceptable,” “Automation harms families.”
Jonita Carter, a docker for 23 years with the Maher company, emphasizes their dedication: “We worked during COVID, we never stopped. We moved the world.”
“If it’s zero degrees, I’m outside. If it’s 40 degrees, I’m outside. We don’t ask for much. We’re asking for a small portion, which we rightly deserve.”
– ‘Not playing fair’ –
The strikers’ main priorities are better wages and guarantees against automation.
While some protections were included in the recently expired labor agreement, and the United States Maritime Alliance (USMX) — representing port employers — has pledged to renew them, union members find these insufficient.
“We want better protections,” insisted Hall, citing developments at the port of Mobile, Alabama, which strikers feel violate previous commitments.
Joe Losada, 57, agreed: “They’re not playing fair. These are generational jobs… We have to keep these jobs and protect them.”
His daughter represents the fourth generation of his family to work at the port.
Family ties are common among port workers. Carter joined through her godfather, and her niece followed suit.
“Most people here have family ties,” she noted.
“I want my colleagues to be able to pay for their children’s university, I want to have good health insurance. But everything is increasing, everything is automated.”
Despite USMX announcing resumed talks and offering a 50 percent pay rise, the ILA rejected it.
Losada explains, “on the face of it, it looks good, but we haven’t had a raise in a while… and when you factor in 30 percent inflation, they’re only offering us 20 percent.”
As the strike continues, workers remain resolute.
“Nobody wants a long strike… but we need what we need,” said Losada.
Carter echoes his sentiment: “I’m ready. We’re going to stay together.”
Global Schedule Reliability Remained Stable in 2024 Ahead of U.S. Strike
Schedule reliability stabilized in 2024 ahead of the U.S. port strike (file photo)
Carrier schedule reliability stabilized in 2024 after the shocks coming from the Red Sea diversions and issues at the Panama Canal. By pressing extra vessels into operation and management carriers were able to level off after significant drops from 2023 but that is before the anticipated impacts of the strike at U.S. East/Gulf Coast ports starting at midnight tonight, September 30.
“Schedule reliability in 2024 has stabilized within the 50 to 55 percent range,” highlights Alan Murphy, CEO of Sea-Intelligence. “While disappointingly low, the minimal volatility this year does give shippers a relatively good idea of what to expect month to month.”
In August 2024, global schedule reliability improved by just 0.7 percentage points month over month up to 52.8 percent. It was the smallest percentage movement of 2024 but it is down over 10 percentage points from a year ago. The average year-to-date for 2024 is just over 53 percent versus a 62 percent average for 2023.
Carriers had to manage the diversions from the Red Sea went caused schedule reliability to plunge to just over half of all vessels in January 2024 versus over 62 percent in November 2023. Now they face a similar challenge that could tie up numerous vessels along the U.S. eastern seaboard as the International Longshoremen’s Association plans to stake its strike tonight at more than 30 ports. Atlantic trades have limited options for diversions with carriers reporting they plan to initially anchor vessels.
In August, congestion backlogs also remained stable. The average delay for late vessels according to Sea-Intelligence remained at just over five and a quarter days in August largely unchanged over four months. The industry however recovered from delays well over six days in January 2024. However, it is still far below the 4.7 days reported in August 2023.
The current average delay for late vessel arrivals Murphy notes was “only surpassed by the pandemic highs of 2021-2022.” This number however will increase dramatically in October if vessels continue to wait offshore for a strike resolution.
The performance is also significantly off from the industry’s goals. Maersk was the most reliable top-13 carrier in August 2024 with schedule reliability of 54.7 percent, followed by Hapag-Lloyd with 54.3 percent. The two carriers however continue to reiterate their goal for the new network to be established with the Gemini Cooperation is for schedule reliability above 90 percent.
During August, Maersk’s schedule reliability was largely unchanged while Hapag showed a better than 5 percentage point improvement. Many of the top carriers (COSCO, HMM, ONE, OOCL, Yang Ming) all had strong month-over-month improvements. However, four carriers including MSC Mediterranean Shipping Company showed declines in August with PIL, Wan Hai, and Zim each showing the largest declines month over month.
Why an old photo of Trump, Longshoreman's president returned to prominence with strike
James Powel, Kinsey Crowley and Medora Lee, USA TODAY Tue, October 1, 2024
The images are pulled from a July post on the union's website where union President Harold Daggett asked for members to "pray" for the former president in the wake of the assassination attempt in Pennsylvania.
In the post Daggett recalled a 2023 meeting with Trump where the former president appeared to express support for the Longshoremen.
"We had a wonderful, productive 90-minute meeting where I expressed to President Trump the threat of automation to American workers," Daggett said. "President Trump promised to support the ILA in its opposition to automated terminals in the U.S. Mr. Trump also listened to my concerns about Federal 'Right To Work' laws which undermines unions and their ability to represent and fight for its membership."
The strike begins the same day as the vice-presidential debate and days after Trump, appearing at a rally in Erie, Pennsylvania, admitted to avoiding paying overtime.
“I know a lot about overtime,” the Republican candidate said Sunday. “I hated to give overtime. I hated it. I’d get other people, I shouldn’t say this, but I’d get other people in. I wouldn’t pay.” Trump administration fought unions in office
Progress for many workers' rights issues was stagnant leading into 2016, and Trump tapped into that frustration, Celine McNicholas, policy director at nonpartisan research organization Economic Policy Institute Action, previously told USA TODAY.
"He was maybe the first Republican in a long time to kind of, like actually give some voice to that outrage," she said. "But I think it stops there."
She said he proposed cuts to worker protection agencies, and Economic Policy Institute called moves under his administration to overturn worker protections "unprecedented." Harold J. Daggett, president of the International Longshoremen's Association speaks as dockworkers at the Maher Terminals in Port Newark are on strike on October 1, 2024 in New Jersey. Officials at 14 ports along the US East and Gulf Coasts were making last-minute preparations on September 30 for a likely labor strike that could drag on the US economy just ahead of a presidential election -- despite last-minute talks.More
"With the incredible flurry of activity that...came from the Trump administration, the chaos, I think, actually served to....obfuscate their actual progress on some of these anti-worker and anti-fair economy policies that they really consistently pushed forward," McNicholas said.
Despite the administration's reputation for being anti-union, the national Teamsters union withheld its endorsement from either Trump or Vice President Kamala Harris, though a slew of swing state locals independently endorsed the Democratic nominee.
The ILA has not announced an endorsement in the 2024 presidential race but put their weight behind then candidate Joe Biden in 2020. What does the ILA want?
The ILA is looking for a 61.5% pay increase over six years, according to CNBC.
It's also concerned about automation. In June, it halted talks with port operator USMX over an automation dispute. In a release then, the ILA said “ILA President (Harold) Daggett made it clear that the union will take a firm stance against any technology that threatens ILA jobs.”
On Monday, USMX said in a statement that it had offered to hike wages by nearly 50%, triple employer contributions to employee retirement plans, improve health care options, and keep its current language around automation and semi-automation.”
The dockworker strike on both coasts of the U.S. is a problem for President Joe Biden as well as Donald Trump, who is banking on Teamster support for his third run for presidency.
That is the opinion of former Sen. Claire McCaskill (D-MO) who noted that the former president may feel "boxed in" when he tries to make hay out of the labor crisis just weeks before the election.
Speaking with "Morning Joe" host Willie Geist, the Missouri Democrat noted Trump's entanglement with Teamster boss Sean O'Brien who spoke at the Republican National convention weeks ago and subsequently refused to endorse Vice President Kamala Harris, which led to a revolt among some local chapters who would subsequently offer their endorsements to the vice president.
According to panelist Andrew Ross Sorkin, "I don't know if you saw this statement from the Teamsters last night. And I think speaks to very thing about this election: It says the U.S. Government should stay the 'F' out of this fight and allow union workers to withhold their labor for the wages and benefits they have earned."
"I mention this because it is going to create a real divide and I think it is going to be interesting as we get close to the election how this administration and how Vice President Harris deals with this and labor, if you will, and what we see from former President Trump and how those things come together and how that therefore plays out on the public stage."
Asked for her opinion by host Geist, who observed Trump thinks of himself as a "big union guy," McCaskill replied, "It's messy and it could become a big problem in the election."
"Having said that though, Trump is kind of boxed here," she continued. "Because if Trump tries to take the side of big business and the shippers, he's got a whole bunch of rank-and-file guys in unions that are going to remain loyal to him, but if he comes out against the workers and say the government should stop the workers' ability to bargain, it's going to cause him real trouble."
"And the reason that the Teamsters are speaking up is because the Teamster leader is in trouble; he's in big trouble, because he didn't endorse Harris and he's got all these locals abandoning the national, which is unprecedented," she elaborated. "In my time in politics I've never seen locals abandon a national like they have in Teamsters. So this is messy and complicated."
Tetley tea owner launches legal action against its own staff
tetley tea
Lucy Burton Wed, October 2, 2024
Tetley tea’s owner has launched legal action against striking factory workers who allegedly trespassed during a pay dispute.
Tata Consumer Products, which has owned Tetley for the past two decades, has applied for a trespass injunction after some striking workers allegedly went on to its Teesside production site in County Durham and started “intimidating” managers.
A rule requiring strikers to stay away from the factory was broken during the industrial action – the first in Tetley’s history – and resulted in “unacceptable” behaviour, according to one source.
The Teesside factory is Tetley’s largest production facility in the world and makes 30pc of all the tea consumed in the UK.
Almost 150 GMB Union members walked out last month after claiming that they have suffered years of real term pay cuts. The GMB, which warned the strikes could lead to tea shortages, is planning more industrial action later this week.
GMB has warned that Tetley staff strikes could lead to tea shortages - ITV Tyne Tees
A hearing on whether the trespass injunction can be granted will take place on Wednesday.
A spokesman for Tata said that strike action must be “peaceful and lawful” with pickets “sited at the agreed locations away from Tata Consumer Products land and premises”.
“Striking guidelines are communicated clearly and striking employees are aware that they are not permitted access to the premises which includes the car park, canteen and toilet facilities on strike days. Any breach of this is considered an act of trespass”.
Tetley tea is one of Britain’s most famous brands having been formed in 1837 by the Tetley brothers in Yorkshire. It is today best known for its cartoon advertising campaign featuring the Tetley Tea Folk characters, Gaffer and Sydney.
Paul Clark, a GMB organiser, warned last month that Britons faced a “shortage of the UK’s favourite cup of tea this autumn” unless bosses agreed to a pay deal at the factory.
Sales of Tetley tea bags grew 250pc the following week as customers panicked about a shortage, according to recent reports.
Tetley narrowly avoided a tea shortage crisis last summer after workers in the GMB accepted a new pay deal that called off planned strike action for 200 workers at the Teesside factory.
At the time, Mr Clark argued that GMB members were “being intimidated by management not to go on strike – they are trying to bully workers rather than listen to their concerns”.
Tata has previously said that it was disappointed by the workers’ decision to strike and has tabled two pay offers. It said “contingency plans” had been put in place to ensure “minimum disruption to supply”.
The group added that although it is committed to its UK manufacturing base it must “remain competitive to support the best interests of the factory and our aspirations to grow our tea presence in the UK and overseas”.
Paul Clark, GMB organiser, said: “This injunction is yet another attempt by bosses to intimate workers.
“Instead of dealing with the issue of poverty pay, they’re wasting cash on trumped up claims. GMB members were exercising their legal right to strike and no action was taken by police.”
Striking Boeing union asks CEO to 'truly engage' after workers' health coverage cut
The Boeing logo is displayed on a screen at the NYSE in New York · Reuters
Updated Tue, October 1, 2024 By Allison Lampert and David Shepardson
(Reuters) -Boeing's largest union urged new CEO Kelly Ortberg on Tuesday to get more involved in contract negotiations to end a strike by around 33,000 U.S. West Coast workers, after the U.S. planemaker cut off their healthcare benefits.
In August, the former Rockwell Collins boss took over the reins of Boeing, which has been rocked by multiple crises this year, including the strike that has hit production of Boeing's strongest-selling 737 MAX jets.
"It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers.
"There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table," Bryant added in a statement.
The Sept. 30 limit for striking workers to access their Boeing health insurance plans was long known, with the union urging workers on Monday to find alternatives.
Talks between Boeing and the IAM's District 751, which is negotiating the deal, broke off last week and it is not clear when discussions will resume.
"We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible," Boeing said in a statement.
Boeing workers in the Seattle area and Portland, Oregon, walked off the job on Sept. 13 in the union's first strike since 2008, halting production of three commercial airplane models and adding financial strain to the planemaker.
The union is seeking a 40% pay rise and the restoration of a defined-benefit pension that was taken away in the contract a decade ago.
Boeing made an improved offer last week to the striking workers that it described as its "best and final", which would give workers a 30% raise over four years and restore a performance bonus, but the union said a survey of its members found that was not enough.
(Reporting by Allison Lampert in Montreal and David Shepardson in Washington; Editing by Muralikumar Anantharaman)
How much do dockworkers make? What to know about wages amid ILA port strike
Fernando Cervantes Jr. Wed, October 2, 2024
Almost 25,000 dockworkers at various ports along the East and Gulf Coasts are striking to ask for higher pay and protections from having their jobs automated out of existence.
Marking the first such strike in almost 50 years, members of the International Longshoremen’s Association walked off the job on Tuesday. In a social media post, the union's president Harold Daggett said the union was fighting for “the kind of wages we deserve.”
In a statement on Monday, the union blamed the United States Maritime Alliance, which represents docks and ocean carriers, for continuing to block an agreement that would end the strike.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject," the statement said.
While 14 ports in the East and Gulf Coast are seeing striking workers, West Coast ports have not been affected as a different union represents its workers. Back in 2023, the West Coast union negotiated wage increases for its workers. What do dockworkers make? What wages are they proposing?
The wages negotiated by the West Coast dockworkers union is one of the reasons for the current strike. ILA workers make significantly less than their counterparts.
The ILA contract that expired on Monday shows that the starting pay for dockworkers was $20 per hour. Pay rises to $24.75 after two years, $31.90 after three and tops out at $39 for workers with at least six years on the job.
Meanwhile, the ILA is demanding a 77% increase over the duration of the contract, with a $5 increase each year of the contract. Workers would make $44 the first year, $49 the second and up to $69 in the final year.
"They might claim a significant increase, but they conveniently omit that many of our members are operating multi-million-dollar container-handling equipment for a mere $20 an hour. In some states, the minimum wage is already $15," the ILA said. An International Longshoremen's Association (ILA) member holds an American Flag on the picket line on Tuesday, Oct. 1, 2024 as the ILA went on strike at the Georgia Ports Authority in Garden City, Ga.
The current top wage amounts to about $81,000 per year, but according to a Waterfront Commission of New York Harbor report about a third of local longshoremen made $200,000 or more a year.
However, that pay may come with extreme hours. The ILA president, Harold Daggett, told the Associated Press that many of the workers earning high wages work up to 100 hours a week.
“Our members don’t work typical 9-to-5 jobs; they work extraordinary hours, sacrificing time with their families. Our position is firm: we believe in the value our incredible rank-and-file members bring to this industry and to our great nation,” the ILA said in a statement.
Textron Aviation employee on strike with coworkers is arrested by Wichita police
FOR STOPPING SCABS
Michael Stavola Wed, October 2, 2024
A Textron Aviation worker was arrested by Wichita police Wednesday morning while striking with coworkers, according to police and the union representing the aviation workers.
The woman was arrested at Textron’s site in east Wichita after “she was warned by officers on two separate occasions not to block or impede the roadway and to take very small steps while crossing,” Wichita police spokesperson Andrew Ford said in an email.
The offense listed on the police report was “miscellaneous offenses/other.” The incident at 300 N. Webb Road was reported at 7 a.m.
IAM District 70 president Lisa Whitley said she didn’t believe the woman should be arrested. She did not see the arrest but based that on what other workers told her.
“They must of arrested her for something. ... We want to follow the rules,” she said.
Textron, which makes Beechcraft, Cessna and Hawker planes and jets, is one of the largest employers in Wichita.
Workers are now on their 10th day of striking. The union represents roughly 5,000 workers.
Wichita company furloughs 20% of workers due to strikes
Laura McMillan
·1 min read
Scroll back up to restore default view.
WICHITA, Kan. (KSNW) — A Wichita manufacturing company that does work for several large aviation companies is furloughing 20% of its workforce.
As a result of the multiple strikes affecting our industry, Cox Machine is furloughing approximately 56 employees, about 20% or our workforce. Many of the employees remaining will participate in a shared work program. We anticipate the return of these employees as industry conditions improve.”
The company specializes in making precision parts and components for several companies, including Textron Aviation, which operates Cessna and Beechcraft in Wichita, and Boeing. Workers are striking for better contracts at Boeing and Textron Aviation.
A worker at Cox Machine in 2020. (KSN File Photo)
A worker at Cox Machine in 2020. (KSN File Photo)
Work being done at Cox Machine in 2020. (KSN File Photo)
A worker at Cox Machine in 2020. (KSN File Photo)
Cox Machine (KSN 2020 Photo)
Cox said some furloughs are in Wichita, and some are in Harper.
Wednesday, October 02, 2024
CRIMINAL CAPITALI$M
SAP, Carahsoft Probe Expanded to Work With Nearly 100 Agencies
Jake Bleiberg and Christina Kyriasoglou Wed, October 2, 2024 at 3:43 PM MDT 4 min read
(Bloomberg) -- US prosecutors are broadening a probe of potential price-fixing by German software maker SAP SE and tech reseller Carahsoft Technology Corp., seeking to examine the companies’ work with almost 100 government agencies, according to new court records that show the scope of the investigation is far greater than previously known.
The Justice Department sent Carahsoft a legal demand for documents and information on 94 civilian government agencies with which it has done business for SAP products, according to a document filed in Baltimore federal court Tuesday. In it, the company characterized the prosecutors’ demand as “dramatically expanding” a civil probe that was already examining whether the companies overcharged the military and some other parts of government on purchases of more than $2 billion worth of SAP technology since 2014.
The investigation’s expanded reach across the US government, which hasn’t been previously reported, signals the depth of legal risk it poses to a top technology vendor and to Germany’s most valuable company. Many investigations end without any formal accusations of wrongdoing.
An SAP spokesperson, Joellen Perry, said the company and its US-based unit, SAP National Security Services, Inc., each received document demands from the Justice Department in August 2022 and have been cooperating with the civil investigation. The demands were “broad and seek documents relating to bidding and pricing practices by SAP and its resellers (including Carahsoft), but the information SAP has produced to date has been more narrowly focused,” Perry said.
A lawyer for Carahsoft, William Lawler III, declined to comment. On Tuesday, Lawler asked a judge to seal the records describing the expanded scope of the civil investigation, saying it included “several unsupported substantive allegations about Carahsoft and its business partners.”
A Justice Department spokesperson also declined to comment.
In June 2022, the Justice Department demanded information from Carahsoft about whether the company and SAP overcharged the US government by making false statements to the Department of Defense, according to court records. Investigators later asked Carahsoft to hand over records related to the Department of Agriculture, Department of Labor, Office of Personnel Management and the Centers for Disease Control and Prevention, Lawler wrote in the Tuesday court filing. The company declined because doing so would cause it to miss a deadline to produce the other records, he said.
Japan’s New Economy Minister Seeks to Maximize Nuclear Restarts
Shoko Oda and Yoshiaki Nohara Tue, October 1, 2024
(Bloomberg) -- Japan’s new economy minister said the country will need to maximize the use of existing nuclear power plants as artificial intelligence and data centers are expected to boost electricity demand.
It’s “natural” for Japan to pursue both atomic and renewable energy in order to meet the growing needs without increasing carbon emissions, said Yoji Muto, who was appointed to the role on Tuesday. The new administration will eye restarting as many reactors as possible so long as they are safe, he said Wednesday.
Muto’s comments point to a continuation of former Prime Minister Fumio Kishida’s work that shifted Japan back toward nuclear energy as a major power source, with many reactors still offline in the wake of the 2011 Fukushima disaster. His successor, Shigeru Ishiba, had said during his campaign that Japan should reduce its dependence on the energy source but later said that he would support the restart of existing plants.
Ishiba’s comments led to a decline in utility shares earlier this week, as investors speculated that the new government would negatively impact the push to embrace nuclear. That move is part of a global revival as countries turn to fission for stable and emissions-free electricity to meet demand.
Muto also said that Japan will need to protect its atomic industry by developing next-generation reactors. The nation is in the process of revising its strategic energy plan that will dictate the power mix, which is currently 70% fossil fuels such as natural gas and coal, beyond 2030.
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Mississippi lawmakers, energy experts agree more nuclear power is in state's future. See why
Grant McLaughlin, Mississippi Clarion Ledger Wed, October 2, 2024
Energy sector experts and representatives from some of Mississippi's largest energy providers want to increase nuclear energy production in and around the state, and they aren't the only ones.
During a meeting with the Mississippi Senate Energy Committee Tuesday at the State Capitol, representatives from Entergy and the Tennessee Valley Authority spoke with lawmakers about the importance and utility of new nuclear power technology to meet demands from various industries in and out of Mississippi such as steel manufacturing and data centers.
Lawmakers also wanted to know what they can do now to entice developments of small nuclear reactor plants, which are essentially more compact reactors that can produce more power.
"Obviously, nuclear is the future," Senate Energy Committee Chairman Joel Carter, R-Gulfport, said. "I thinkMississippi has decided to say, 'Hey, y'all watch this,' and now we'll see what happens."
Experts from Nuscale Power said more modern energy production sites can have as many as 12 small reactors to a plant and produce more than 1,000 megawatts of power while only using a portion of the land a traditional nuclear power plant would need.
From a cost-to-build perspective, these types of nuclear power plant would take about three years to build at a significantly reduced overall price tag, Nuscale Power Executive Vice President of Business Development Clayton Scott said.
"Mississippi is a great state to build something, and so we think we're open minded to working with you guys to figure out what (projects) make sense," Scott said.
As for what the state can do now to attract these projects, Scott and others said tax incentives, supportive state policy and investment, Nuclear Regulatory Commission approved build sites, land with access to rivers, waterways, rail and highways are essential.
Scott said his company is actively looking at 12 sites throughout the United States.
Currently, there are 93 nuclear power plants in the United States and one, the Grand Gulf Nuclear Station, which is owned by Entergy, is located near Port Gibson. The plant has an operation license ending in 2044 and an option to extend it to 2066.
According to the United States Department of Energy, nuclear energy is the second largest form of clean energy production. Nuclear power also does not produce carbon emissions, uses less land as compared to other plants such as coal or gas plants and leaves little waste product.
The power itself is created traditionally by fission, a process for splitting atoms. The heat from that atomic reaction is then used to create steam, which then spins a turbine that creates electricity.
Jim Smiley, of Entergy, told lawmakers the company doesn't want to pioneer new nuclear technology in the state, but it already has a federally approved nuclear plant site in addition to Grand Gulf Nuclear Station, and would greenlight a plant project if it doesn't cost its customers more on their monthly bills and is a benefit to the region.
"We firmly believe that nuclear is our future and new nuclear specifically is in our future," Smiley said. "It's not really a matter of if, it's a matter of when and how do we get there."
TVA representative Dan Pratt also showed a chart showing that as of 2023, nuclear power accounted for 42% of its grid, which encompasses Northeast Mississippi. Pratt said the future of nuclear power should not be ignored as TVA looks to significantly decrease its carbon footprint by 2050.
"We do believe that ultimately to get to 2050 and truly be able to get to extreme decarbonization, nuclear has got to be part of that," Pratt said. "That's got to be part of the national energy strategy, and TVA is part of that, obviously, as an advocate and an operator of nuclear power."
The TVA operates three nuclear power plants already, with one in Alabama and two in Tennessee. Grant McLaughlin covers state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com
Corrosion exceeds estimates at Michigan nuclear plant US wants to restart, regulator says
Timothy Gardner Wed, October 2, 2024
By Timothy Gardner
WASHINGTON (Reuters) -Holtec, the company wanting to reopen the Palisades nuclear reactor in Michigan, found corrosion cracking in steam generators "far exceeded" estimates, the U.S. nuclear power regulator said in a document published on Wednesday.
President Joe Biden's administration this week finalized a $1.52 billion conditional loan guarantee to the Palisades plant. It is part of an effort to support nuclear energy, which generates virtually emissions-free power, to curb climate change and to help satisfy rising electricity demand from artificial intelligence, electric vehicles and digital currency.
Palisades, which shut under a different owner in 2022, is seeking to be the first modern U.S. nuclear power plant to reopen after being fully shut.
A summary of an early September call between the U.S. Nuclear Regulatory Commission and Holtec published on Wednesday said indications of stress corrosion cracking in tubes in both of Palisade's steam generators "far exceeded estimates based on previous operating history." It found 1,163 steam generator tubes had indications of the stress cracking. There are more than 16,000 tubes in the units.
Steam generators are sensitive components that require meticulous maintenance and are among the most expensive units at a nuclear power station.
Holtec wants to return the plant to operation late next year. Patrick O'Brien, a company spokesperson, said the results of the inspections "were not entirely unpredicted" as the standard system "layup process", or procedure for maintaining the units, was not followed when the plant went into shutdown.
But he said the return of Palisades is still on schedule and that Holtec wants to fix, and not replace, the steam generators, which he said would last for 30 years after repairs.
"We expect the repair strategy will be to 'unplug' approximately 300 tubes per steam generator that were plugged at original installation, and then address the tubes found during the inspections by plugging approximately 20% of the tubes that cannot be repaired easily and repairing the remaining 80% with sleeving, which is a common and proven repair strategy," O'Brien said.
Holtec still needs permits from the NRC. "Holtec must ensure the generators will meet NRC requirements if the agency authorizes returning Palisades to operational status," an NRC spokesperson said.
The NRC said last month that preliminary results from inspections "identified a large number of steam generator tubes with indications that require further analysis and/or repair."
Steam generator issues can pose problems for nuclear power plants. Parts of the San Onofre Nuclear Generating Station in California were shut in 2012 after steam generators that had a design flaw leaked. Problems with new generators led to the closure of the plant in 2013.
(Reporting by Timothy Gardner; Editing by Andrea Ricci and David Gregorio)
First nuclear plant recommissioned in US history as part of $2.8bn funding
The Biden-Harris Administration, through the US Department of Energy (DOE) and Department of Agriculture (USDA), has announced more than $2.8bn in funding to support clean power in the Midwest.
As part of the plan, the DOE has closed a loan guarantee of up to $1.52bn to finance the restoration and resumption of a 800MW nuclear generating station in Michigan.
This marks the first recommissioning of a retired nuclear power plant in US history.
The Palisades Nuclear Plant, which ceased operations in May 2022, will be brought back online and upgraded to produce clean baseload power until at least 2051, subject to US Nuclear Regulatory Commission licensing approvals.
The plant’s restart is expected to protect 600 union jobs at the plant and 1,100 in the community and provide access to reliable power for 800,000 homes in the Midwest, covering Michigan, Wisconsin, Indiana and Illinois.
Palisades is also anticipated to reduce greenhouse gas emissions by 4.47 million tonnes (mt) per year for a total of 111mt during the projected 25 years of operations.
The project is managed by energy company Holtec International and Wolverine Power Cooperative, a not-for-profit energy provider to rural communities in Michigan. The organisations signed long-term power purchase agreements in 2023.
The USDA has also allocated more than $1.3bn for Wolverine Power Cooperative and Hoosier Energy to reduce the cost of electricity passed on to the community from the Palisades plant and other clean energy sources.
According to the White House, the Palisades plant is located in a disadvantaged community where residents face higher energy costs than 97% of communities in the country.
US Secretary of Energy Jennifer M Granholm commented: “Nuclear power is America’s largest source of carbon-free of electricity, supporting hundreds of thousands of direct and indirect jobs across the country, and will play a critical role in tackling the climate crisis and protecting public health and the environment from its impacts.”
The US aims for a carbon-free power sector by 2035. Nuclear power has been spotlighted as a solution for providing uninterrupted carbon-free power amid rising electricity demand.
"First nuclear plant recommissioned in US history as part of $2.8bn funding " was originally created and published by Power Technology, a GlobalData owned brand. Energy Department finalizes loan for Michigan nuclear plant revival
Zack Budryk Mon, September 30, 2024
The Energy Department on Monday announced it has finalized a $1.5 billion loan to restart a shuttered Michigan nuclear power plant.
The loan guarantee will restart the Holtec Palisades nuclear plant in Covert Township, which shut down in 2022 after five decades of operation. The reboot will mark the first for a nuclear reactor after the removal of its fuel.
The Biden administration is also awarding $1.3 billion through the Department of Agriculture’s Empowering Rural America program to two rural electric cooperatives, which will discount electricity passed on to their members through emissions-free sources, such as the Holtec plant.
The administration projected the restarted Palisades plant, which still must go through the Nuclear Regulatory Commission licensing approval process, will provide power until at least 2051 once brought back online. The administration estimated it will create or keep up to 600 local jobs, and the company has signed an agreement with 15 trade unions, according to the department.
“Nuclear power is America’s largest source of carbon-free of electricity, supporting hundreds of thousands of direct and indirect jobs across the country and will play a critical role in tackling the climate crisis and protecting public health and the environment from its impacts,” said Energy Secretary Jennifer Granholm, a former Michigan governor, in a statement. “Under President Biden and Vice President Harris’ leadership, DOE and our partners across the federal government are working around the clock to ensure this vital source of clean electricity—and the vibrant workforce it supports— continues to power our nation for generations to come.”
Nuclear power largely fell out of favor during the Cold War amid anxieties about the potential for accidents, but policymakers in recent years have revisited it as a renewable and emissions-free power source. The announcement comes shortly after the news that the Three Mile Island plant in Pennsylvania, the site of a partial meltdown in 1979, will reopen to power Microsoft data centers.
Copyright 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. DOE, USDA announce over $2.8B for Palisades nuclear plant restart
Two regional electric cooperatives, Hoosier Energy and Wolverine Power Supply Cooperative, will receive about $1.3 billion from the U.S. Department of Agriculture to partially offset power purchases from the reopened facility, the administration said.
Holtec remains on track to restart Palisades in October 2025, company spokesperson Patrick O’Brien told Utility Dive earlier this month. It would be the first U.S. n Dive Insight:
DOE in March announced a conditional loan guarantee of up to $1.52 billion for the Palisades restart. Monday’s announcement solidifies DOE’s commitment and, along with the USDA’s awards, represents crucial financing for Holtec’s effort.
The federal funding announcements for Palisades come less than two weeks after Constellation Energy said it would spend $1.6 billion to restart the idled 835-MW reactor at Three Mile Island unit 1 in 2028.
Constellation’s TMI-1 restart is supported by a 20-year PPA with Microsoft, which will use the electricity to run data centers in PJM Interconnection territory. Constellation declined to discuss the terms of the PPA, but the company’s investor presentation on the restart suggests it places a substantial premium on power generated by TMI-1, Studsvik Scandpower Chief Commercial Officer Keith Drudy told Utility Dive last month.
Morgan Stanley analysts estimate Constellation will sell power to Microsoft for $98/MWh compared to market power prices of around $50/MWh. Constellation also expects the unit’s output will receive a roughly $30/MWh clean energy tax credit.
The USDA awards to Hoosier Energy and Wolverine Power Supply Cooperative “will help reduce wholesale power costs, provide community benefits and keep electricity reliable and affordable” for the cooperatives’ residential and commercial members, Deputy Secretary of Agriculture Xochitl Torres Small said in a press briefing.
Under their respective PPAs, Wolverine Power Supply Cooperative will procure 435 MW and Hoosier Energy 369 MW of Palisades’ generation, USDA said earlier this month.
Hoosier Energy will also use a portion of its award to procure 250 MW of renewable energy annually, USDA said.
The USDA award to Wolverine Power Supply Cooperative will help it reach its goal of procuring 100% carbon-free power by 2030, 10 years ahead of Michigan’s 2040 target, Torres Small said. The Palisades PPA is “a key component” of that plan, along with some 400 MW of solar capacity under development across Michigan, the cooperative said in March.
The USDA awards represent about one-quarter of the value of the cooperatives’ PPAs, a senior administration official said in the press briefing.
The DOE loan will fund inspection, testing, restoration, rebuilding and replacement of existing equipment at Palisades, another senior administration official said in the briefing. LPO has received nuclear-related loan requests worth more than $65 billion, the senior administration official added.
“To dominate the industries of the future, we need to supply abundant, affordable, clean power,” National Climate Advisor Ali Zaidi said in the briefing. “Palisades represents that potential.
PITIFUL
Biden to keep target of accepting 125,000 refugees next year, memo says
Reuters Mon, September 30, 2024 U.S. President Biden provides an update on the Hurricane Helene response and recovery efforts, at the White House
(Reuters) - President Joe Biden will keep the administration's target of accepting 125,000 refugees next year, according to a memo delivered to the U.S. State Department on Monday.
The Biden administration is on pace to bring in 100,000 people through the U.S. Refugee Admissions Program in fiscal year 2024, which ends on Sept. 30, according to an internal report to U.S. lawmakers, Reuters has reported.
If successful, that would be the highest level in three decades.
"The admission of up to 125,000 refugees to the United States during Fiscal Year (FY) 2025 is justified by humanitarian concerns or is otherwise in the national interest," Biden wrote in the memo.
Immigration is a top voter concern in the run-up to the Nov. 5 elections that will pit Kamala Harris, a Democrat and Biden's vice president, against Republican Donald Trump. Trump greatly curtailed refugee admissions during his 2017-2021 presidency and has pledged a wide-ranging immigration crackdown if re-elected.
The U.S. Refugee Admissions Program typically is available to people outside of their home countries who face persecution based on race, religion, nationality, membership in a particular social group, or political opinion. Applicants must be outside the U.S. to qualify for the status.
Biden first aimed for 125,000 refugee admissions in fiscal year 2022, an ambitious target that has remained elusive even after years of stepping up refugee processing.
(Reporting By Jarrett Renshaw; Editing by Chris Reese and Muralikumar Anantharaman)
An International Longshoremen's Association (ILA) member holds an American Flag on the picket line on Tuesday, Oct. 1, 2024 as the ILA went on strike at the Georgia Ports Authority in Garden City, Ga.
