Sunday, December 05, 2021

Use of NDAs has created 'culture of silence and fear' on UPEI campus, former prof says

Multiple sources say non-disclosure agreements used to

 silence harassment allegations

A university campus is no place for non-disclosure agreements that prevent victims of harassment from speaking out and warning others, women's advocates say. (Wayne Thibodeau/CBC)

The University of Prince Edward Island has used non-disclosure agreements to create "a culture of silence and fear" on campus, resulting in a toxic workplace where staff would sooner leave the province than speak out, says a former professor.

Kate Tilleczek, who served as the Canada Research Chair in Child/Youth Cultures and Transitions at UPEI before leaving the institution in 2018, said she supported three women who ended up signing non-disclosure agreements, or NDAs, after they came forward with complaints of sexual harassment on campus. 

For that, Tilleczek said she herself experienced retaliation from university administration.

"I don't think a post-secondary institution is any place for an NDA," said Tilleczek, who's now an instructor at York University in Toronto.

"We're there for intellectual openness and freedom and discovery and innovation… and I don't see how NDAs have any place whatever."

In 2013, the university acknowledged it had reached settlement agreements with two employees who had filed complaints of sexual harassment with the P.E.I. Human Rights Commission. Those complaints centred around the conduct of university president Alaa Abd-el-Aziz, who has held his post since 2010.

Two settlements were reached in 2013 involving allegations against University of Prince Edward Island president Alaa Abd-El-Aziz, shown in this photo as the university was planning 50th-anniversary celebrations in 2019, (Brittany Spencer/CBC)

Neither the commission nor the university would provide specifics around the complaints — but at the time the chair of the UPEI Board of Governors, Tom Cullen, told the Charlottetown Guardian they involved inappropriate comments. As part of the settlement, the university said it couldn't comment on what costs or conditions were involved.

Tilleczek said a third settlement was reached with a former university student regarding the conduct of a professor — not the president — and she said all three settlements included NDAs.

No response from UPEI

CBC News asked the university multiple times about its use of NDAs — whether they had been used and in what circumstances, whether there is a policy to direct their use, and how much money has been included in related settlement agreements

The university did not provide a response.

CBC reached out to the three people believed to have signed the agreements, which in such cases require both parties to agree not to speak to others about what happened, and could involve compensation for what a victim has been through. Two responded to say they could not provide comment. The third person did not respond.

After the issue of non-disclosure agreements was raised in the P.E.I. legislature earlier this year, another person reached out to CBC to provide information similar to that provided by Tilleczek. She described being harassed herself at UPEI. Fearing retaliation, she did not make a formal complaint. (CBC has agreed to protect her identity.)

People are afraid to speak out and the university is using public and student money to do this.- Woman who says she was harassed at UPEI

NDAs "are being used to silence victims of harassment and to protect the most senior [staff]," the woman told CBC.

She said some staff "have been workplace bullied and left and took the NDA because they needed the money. People are afraid to speak out and the university is using public and student money to do this."

While working on this story, CBC contacted more than two dozen current and former students, faculty and staff.

Some said they had no knowledge of the university signing NDAs in cases of harassment. Others said they could neither confirm nor deny the practice. Some said they had a general understanding that NDAs had been included in one or more of the settlement agreements, while some said they had specific knowledge of one or more of the NDAs referenced in this story.

One staff person did say they had signed two NDAs, pledging to not disclose financial details and human resources information to which they were privy, as is common in large organizations.

Another pointed to confidentiality requirements written into the university's fair treatment policy. That policy requires complainants in cases of harassment and sexual harassment to maintain "the degree of confidentiality necessary to ensure… congenial and collegial relations among members of the University community."

Limits placed on future deals

A new law which passed unanimously in the P.E.I. legislature in November is set to make the province the first jurisdiction in the country to limit the use of NDAs in cases of discrimination and harassment when it comes into effect in May.

Most of the restrictions will affect only future NDAs, but the bill includes measures ensuring those who have signed NDAs in past cases of alleged harassment or discrimination are always free to speak about their experiences with health care professionals, law enforcement personnel and prospective employers.

Julie Macfarlane, a retired law professor with the University of Windsor and co-founder of a global campaign to end the use of non-disclosure agreements to silence victims, said their use has become "standard practice" in Canadian universities, "much as it has been standard practice for many years in the church" when it comes to allegations of sexual misconduct.

Julie Macfarlane has been campaigning for universities to stop condoning the use of non-disclosure agreements in harassment cases, calling it 'a discredited, immoral practice.' (Submitted by Julie Macfarlane)

NDAs allow offenders to be shuffled between institutions while preventing any warning from being issued to potential victims on the receiving end, Macfarlane says.

"I mean this is something that is absolutely common sense to women who've experienced sexual harassment," she said. "You do want to be able to say to another woman who is working with the same person… 'You need to be careful around this person. You need to be careful about being alone with this person.'

"That's what NDAs are stopping us doing."

Silence interferes with healing: council

The P.E.I. Advisory Council on the Status of Women says NDAs further harm victims of harassment by silencing them.

"Any resolution that does not allow someone to continue to speak about their experience and access the help that they need continues the harm," said Jane Ledwell, the council's executive director.

'Any resolution that does not allow someone to continue to speak about their experience and access the help that they need continues the harm,' says Jane Ledwell, the executive director of the P.E.I. Advisory Council of the Status of Women, of non-disclosure agreements. (Shane Hennessey/CBC)

Ledwell said survivors should be able to decide for themselves whether to talk about their stories.

"The survivor who is cut off from their own story and unable to share it loses the opportunity for healing and restoration within the community," she said.

Ledwell said there's an imbalance of power when an institution enters into a legal agreement with an individual who may have been a victim of abuse, and it's up to institutions to ensure that imbalance of power "not be used as power over someone to silence them into the future."

Allegations of retribution

Tilleczek said she believes she faced retribution for supporting the women who filed complaints about sexual harassment on the UPEI campus.

Kate Tilleczek, shown in a 2016 file photo, provided support for three women who signed non-disclosure agreements during her time at UPEI. (CBC)

As an example, she said university administrators on two separate occasions tried to move her research lab from Dalton Hall into a basement location. The second time, she said, the decision was made without telling her, and was overturned only when the university's vice president of research intervened. 

Tillleczek said the victims themselves also became targets of retaliation from university administration; one had a sabbatical denied. 

Tilleczek said all three victims left the campus, and that retaliation was a factor in her own decision to leave in 2018.

"Why would one stay in a position in a place that allows such harassment and toxicity to go unchecked?" said Tilleczek. 

"It does affect you. It affects your kind of pride in place, particularly in the institution. And you're kind of concerned that could happen to other people, to other women when there are NDAs, and this then buys silence [to protect] the persons who are harassing.

"It switches the culture in a way that for women doesn't really feel safe or welcoming at all."

'Clearing of the air' needed

Through the campaign "Can't Buy My Silence," Macfarlane is calling on UPEI and all universities "to release everybody whom they have currently given a non-disclosure agreement to."

She's also asking for universities to declare they will no longer use NDAs "when we're dealing with cases that affect the safety of our employees and students, and those in other universities where they might subsequently work."

Macfarlane says she believes that once one university "is brave enough to stand up and say: 'This is a discredited, immoral practice and we won't do it any longer,' that that will put pressure on other universities — I hope — to follow suit."

The silence and the complicity that went on, and perhaps still goes on at the University of Prince Edward Island... should be spoken about.- Kate Tilleczek

Tilleczek said UPEI should reach out to the victims who signed NDAs and make it clear it will not pursue legal action if they choose to tell their stories.

"I think there should now be a clearing of the air," she said. "This new bill provides a way forward to open up some of those discussions."

Tilleczek suggested an external third party could facilitate such a process.

"The silence and the complicity that went on, and perhaps still goes on at the University of Prince Edward Island… should be spoken about."

CEO Feels Terrible About Laying Off 900 Employees Over Video Chat, Does It Anyway

"If you’re on this call, you are part of the unlucky group that is being laid off," mortgage lender Better.com CEO Vishal Garg said.


By Jason Koebler
3.12.21
On the Clock

On the Clock is Motherboard's reporting on the organized labor movement, gig work, automation, and the future of work.

“This is the second time in my career I’m doing this and I do not want to do this. The last time I did it, I cried; this time I hope to be stronger,” Garg says early in the video, before noting that he is laying off "about" 15 percent of the company’s workforce just before the holidays. More than a minute into the call, Garg says, “If you’re on this call, you are part of the unlucky group that is being laid off. Your employment here is terminated effective immediately.”

Garg says in the video that he wishes that the company “was thriving as enthusiastically as we were at the beginning of this year, but that that’s not the case.” He then adds that he is sure that laid-off employees “will leave us and be more successful, more fortunate, and luckier in your next endeavor. I wish you all the best of luck.”

There is, of course, no good way to lay people off, but what makes this video particularly brutal is Garg's focus on his own feelings, rather than those of his employees; his repeated invoking of laid-off employees’ bad "luck"; and, most strikingly, that it has the look and feel of an “if you’re watching this, I’m already dead” video. The twist, of course, is that Garg is fine and his employees are not.



‘F—k you, dude’: Startup valued at $7B gets flack as CEO lays off hundreds over Zoom


Joshua Bote, SFGATE
Dec. 3, 2021


Just days after receiving a $750 million cash infusion, a tech startup that Forbes branded in October as a “unicorn,” valued at $7 billion, laid off hundreds of employees in a manner that some online deemed “brutal.”

Better.com, a digital mortgage lender with offices in Oakland, laid off 900 employees weeks before Christmas on a mass Zoom call. Only those being laid off were invited. It is a stark tidal shift for the company, which announced it was going public earlier this year.

“I come to you with not great news,” CEO Vishal Garg said in the video, which has since circulated on TikTok and YouTube. “The market has changed, as you know, and we have to move with it in order to survive.”

“This isn’t news you’re gonna wanna hear, but ultimately it was my decision and I wanted you to hear it from me,” Garg added. “The last time I did this, I cried. This time, I hope to be stronger.”

But he gets back to business seconds later, telling those in the Zoom call that they were the ones to be laid off. (A spokesperson for the company later clarified to SFGATE that only 9% of employees were laid off. The discrepancy between Garg's and the official company percentage remains unclear.)

“If you’re on this call, you are part of the unlucky group that is being laid off,” Garg said, citing “market efficiency, performances, productivity” among the reasons for the layoffs.

The person recording the video is seemingly furious. “F—k you, dude,” he says as Garg announces this news.


Garg also offered his hopes that those who got laid off would be “more successful, more fortunate, and luckier in your next endeavor.”

But Better.com recently received a substantial cash infusion from its backers. Chief Financial Officer Kevin Ryan said in an internal email, which TechCrunch obtained, that the firm would have “$1 billion of cash on the company’s balance sheet,” thanks to SoftBank and Aurora Acquisition. The company also hired 7,000 people during the pandemic, reported Business Insider.

Meanwhile, Ryan said in a statement sent to SFGATE, “Having to conduct layoffs is gut wrenching, especially this time of year, however a fortress balance sheet and a reduced and focused workforce together set us up to play offense going into a radically evolving homeownership market."

Better.com CEO Fires Employees In A Cold One-Way Video Announcement

Jack Kelly
Senior Contributor
FORBES
Careers
I write actionable interview, career and salary advise



Shot of a stressed businesswoman with headache in the office after hearing the bad news 

Running a business isn’t easy. Sometimes market forces work against you, and the company doesn’t do well. In trying times, you see who is a real leader. They should stand strong and show empathy towards the employees who are impacted by the unfortunate turn of events.

Vishal Garg, CEO of ‘unicorn’ mortgage lender startup Better.com—after receiving a $750 million cash infusion with a valuation of around $7 billion—bluntly informed his 900 employees that a large number of people will be fired in a cold, awkward one-way video announcement, Thursday.

Looking visibly uncomfortable, Garg said that 15% of the workforce would be laid off. In a monotone voice he said, “This is the second time in my career I’m doing this and I do not want to do this. The last time I did it, I cried; this time I hope to be stronger.”

During the holiday season, it's standard company practices to hold off on bad news such as mass terminations. Instead of waiting some weeks for the staff to enjoy family and friends during the holiday season, Garg dropped the bombshell announcement, “If you’re on this call, you are part of the unlucky group that is being laid off. Your employment here is terminated effective immediately.”

In a video version of the termination call, a presumed disgruntled employee cursed out the CEO saying “F*ck you, dude,” over the announcement. Garg did say, “I wish you all the best of luck,” in their new endeavors.

Kevin Ryan, Better.com's CFO, said in a statement that the company only laid off 9 percent of its employees, and “Having to conduct layoffs is gut-wrenching, especially this time of year, however a fortress balance sheet and a reduced and focused workforce together set us up to play offense going into 

This is not the first time people were let go via a one-sided or cold video announcement. Back in May, 2020, at the early stages of the Covid-19 outbreak, ridesharing app company Uber announced the layoff of 3,500 employees, representing 14% of its workforce. In a sign of the times, with employees working from home, Uber informed the job-loss casualties via an online Zoom call.

The head of Uber’s customer service office, Ruffin Chevaleau, told workers that today was their last day at the company. Chevaleau soberly shared that Uber’s business was hit hard. The company’s business dropped by over 50%. She said, "With trip volume down, the difficult and unfortunate reality is there is not enough work for many front-line customer support employees."

Chaveleau added, "As a result, we are eliminating 3,500 front-line customer support roles. Your role is impacted and today will be your last working day with Uber." Uber CEO Dara Khosrowshahi said of the downsizing, "We're focused on navigating through this crisis that absolutely leaves us in a stronger position, as the world starts to recover." Khosrowshahi announced that he will be forsaking his base salary.

Scooter-sharing startup Bird fired 406 employees in April, 2020 via a “Black Mirror” style video. The unsuspecting workers were asked to log into a one-way Zoom call, after being informed that all other appointments were cancelled. A disembodied voice read a script informing the person that they’ve been laid off. Their Slack and other accounts were shut off and given end dates.

24 Hour Fitness, a privately held national chain of about 430 gyms with 22,000 workers, fired employees via a phone call. The gym’s Chief human resources officer, Tami Majer, sent an email to workers asking them to participate in a phone call to discuss “important company updates,” indicating that they’ll be paid for their time. On the call, the employees were told that they’ve been let go. There wasn’t any in-depth discussion around severance packages, benefits or any other color provided as to what's going on.

Airbnb took a different, more enlightened approach to layoffs during the height of the virus outbreak. The company announced that it would downsize 25% of its workforce. Roughly 1,900 people out of the company’s 7,500 total workforce would lose their jobs. At the time, this was one of the largest layoffs that we’ve seen out of Silicon Valley due to the effect of the coronavirus outbreak. What’s different about Airbnb is the manner in which the company informed employees of its plans.

In a message to staff, Airbnb cofounder and CEO Brian Chesky said, “Some very sad news. Today, I must confirm that we are reducing the size of the Airbnb workforce.” Chesky then advised his employees that he will be transparent and offer details, so that everyone is fully aware of what’s happening.

He was forthright and didn't try to spin the narrative, as he stated, “We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill. Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019. In response, we raised $2 billion in capital and dramatically cut costs that touched nearly every corner of Airbnb.”

He also assured the staff that the “decisions are not a reflection of the work from people on these teams.” Chesky thanked his employees by saying, “We have great people leaving Airbnb, and other companies will be lucky to have them.” The chief executive promised that the company will take care of those that are leaving. “We have looked across severance, equity, healthcare and job support and done our best to treat everyone in a compassionate and thoughtful way,” Chesky added.

His message also said, “Employees in the U.S. will receive 14 weeks of base pay, plus one additional week for every year at Airbnb. Tenure will be rounded to the nearest year. For example, if someone has been at Airbnb for three years and seven months, they will get an additional four weeks of salary, or 18 weeks of total pay.” Twelve months of health insurance will be covered through COBRA.

It's important to demonstrate compassion and understanding, as being let go is a traumatic experience. The impacted employees are worried about their financial situation, scared about trying to quickly find a new job, concerned that companies may perceive the firing as if they did something wrong, the loss of identity that’s tied up with your job, and missing the camaraderie of close workmates.

Real leadership is needed in a time of crisis. It's important to show empathy in sharing the bad news. Have everything ready for the impacted workers such as insurance coverage, date of departure, severance packages, recommendation letters, introductions to recruiters who could help with finding new jobs. Actively listen to the staff who are part of the downsizing, and take actions to help them through this difficult transitionary period.

Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily

Post author By admin

Post date December 4, 2021

1.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily

2 days ago · Better.com, the SoftBank-backed mortgage startup with a wildly temperamental founder, laid off roughly 10 percent of its workforce today, or about 900 people in the United States and India ...

https://www.thedailybeast.com/softbank-backed-startup-bettercom-fires-900-in-brutal-cleansing


2.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily

Dec 01, 2021 · Meredith Corp. is being accused of exploiting laid off workers and stiffing them on pay for working on Ayesha Curry's quarterly Sweet July magazine.

https://nypost.com/2021/12/01/meredith-accused-of-stiffing-staffers-on-ayesha-currys-mag/
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3.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily

Nov 20, 2021 · Time’s Up CEO Exits as Most of Staff Laid Off: ‘This Is a Needed Reset, Not a Retreat’ Interim president Monifa Bandele has left the scandal-marred organization just two months after CEO ...

https://www.indiewire.com/2021/11/times-up-ceo-exits-staff-laid-off-1234680676/


4.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily

May 15, 2021 · The CEO of Kroger, America’s largest grocery store chain, has been criticised for receiving a record $22.4million in compensation after …

https://www.yahoo.com/news/kroger-ceo-blasted-22-4m-180415832.html


5.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily

Oct 17, 2021 · In 2020, Smith laid off some 1,500 of the 9,000 employees that worked across the company's roughly 100 dealerships. Now, salespeople are moving around 18 cars per month, double the 8-10 they were ...

https://www.yahoo.com/news/car-dealership-ceo-says-cut-164008693.html



1.Amazon (company)

Kingdom. In 2001, 850 employees in Seattle were laid off by Amazon.com after a unionization drive. The Washington Alliance of Technological Workers (WashTech)

https://en.wikipedia.org/Amazon (company)
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2.GameStop

pandemic in North America, with employees and social media users accusing the company of placing its business ahead of the safety of its staff and customers,

https://en.wikipedia.org/GameStop


3.JPMorgan Chase

how their CEOs are compensated in comparison with their employees. In public filings, companies have to disclose their "Pay Ratios," or the CEO's compensation

https://en.wikipedia.org/JPMorgan Chase

IWGB union says Lockwood Publishing layoffs are illegal

Worker's group says management did not provide adequate consultation for cuts to 33 positions

Jeffrey Rousseau
Staff Writer
Friday 3rd December 2021
COMPANIES IN THIS ARTICLE
Lockwood Publishing

Today the Independent Workers' Union of Great Britain called recent layoffs at Lockwood Publishing unlawful.

The IWGB said workers have negotiated with management for weeks about layoffs of about 17% of the company (33 of 200 positions placed at risk) and are going public as "management refuses to engage with the workers seriously."

The IWGB says that with layoffs of this scope employers are required to have collective consultations before proceeding, and it alleges that Lockwood has not done that.

In a press release the employee group said, "Mobile games developer Lockwood Publishing has been conducting an unlawful redundancy process, repeatedly flouting employment law."

It added, "When placing this number of employees at risk of redundancy, a corporation is obligated by law to conduct collective consultations as laid out in the legislation, which Lockwood has failed to do, disregarding the basic rights of its employees."

The IWGB has demanded Lockwood Publishing "abide by employment law, recognize their union and initiate a fair process."

The press release also calls attention to the company's finances, specifically $25 million in funding it secured from Tencent just last year.

GamesIndustry.biz has reached out to Lockwood for comment.

Mobile Game Publisher Lockwood Accused Of "Flouting Employment Law"











BY RHIANNON BEVAN
PUBLISHED 2 DAYS AGO

The studio behind mobile game Avakin is said to be secretly laying off its staff, and not even letting them say goodbye to coworkers.

Lockwood Publishing, best known for the popular mobile game Avakin Life, is facing accusations of breaching employment law. This comes from the Independent Workers' Union of Great Britain (IWGB), a trade union that represents game workers. This comes despite a big Tencent partnership, and the CEO making over $300,000 a year.

According to the allegations, Lockwood is trying to lay off 33 out of a workforce of 200. Employees are said to have their workplace IT accounts suddenly disabled without warning, before being told they are at risk of redundancy. IWGB says the workforce has not been consulted about this high number of layoffs, which would be a breach of employment law.

RELATED:"Change Will Not Come From The Goodness Of CEO's Hearts", Unions Blast Abusive Conditions In The Gaming Industry

"One day without any previous notice, HR called us into an agendaless meeting", said one anonymous employee. "We were told we were at risk of redundancy but not given any real explanation as to why. Some people had their work accounts deactivated within minutes and were told they couldn’t say goodbye to their co-workers".

This all comes despite a $25 million cash injection last year, courtesy of Tencent. The redundancies are also bizarre given the popularity of metaverse games like Avakin Life over lockdown, which has seen the game reach seven million monthly users, across 250 million accounts.

It was also found that the company's CEO makes £360k, leading many to question if these redundancies are truly necessary.



In response to the lack of transparency regarding such a high amount of employees facing job loss over the holidays, Lockwood workers formed their own union and affiliated with IWGB.

"We are asking management at Lockwood Publishing to halt this unlawful and illegitimate process of redundancies and avoid costly legal and reputational damage in the process", said a representative of The Lockwood Union. "No one should be sacked at Christmas, especially when there are clear alternatives available. Ultimately, we all want the same thing: we want a flourishing organisation that we are proud to work for. To do that, senior management at Lockwood have to start listening to their workers". The union goes on to compare the case to that of Activision Blizzard and Ubisoft, who face their own workplace abuse allegations.

Lockwood Publishing is yet to respond to the allegations.

TECHNO-MYTH
JIMCO Technology Fund joins a $1.8bn funding round for fusion energy


Updated 02 December 2021
ARAB NEWS
https://arab.news/bg6py

The Saudi-based Jameel Investment Management Co. has participated in a $1.8billion funding round for a US fusion energy company, it has been announced.

JIMCO has invested an undeclared amount in Commonwealth Fusion Systems, a company founded in 2018 that is building the world’s first net-energy-giant fusion system.


“The world is ready to make big investments in commercial fusion as a key part of the global energy transition,” the chief executive officer of CFS, Bob Mumgaard, said.

The High-Temperature Superconducting magnet technology will be used in SPARC, a fusion device that is currently being constructed in Massachusetts and expected to demonstrate net energy from fusion by 2025.

This comes amid the parties’ steps towards a more sustainable future to mitigate climate change.

Bill Gates-Backed Commonwealth Fusion Systems IPO—Anticipation Grows


SOURCE: COMMONWEALTH FUSION SYSTEMS TWITTER

BY RUCHI GUPTA
DEC. 2 2021

Commonwealth Fusion Systems (CFS) recently raised $1.8 billion from a group of prominent investors including Bill Gates and Salesforce CEO Marc Benioff. Many prospective investors want to know whether CFS stock is publicly traded and how to buy it before the Commonwealth Fusion Systems IPO.

The efforts to combat climate change have created many opportunities for investors. Some investors are picking up EV stocks like Tesla while others are investing in companies that build systems that produce renewable energy from wind, solar, or other clean sources. CFS belongs to the renewable energy producer category.

What does Commonwealth Fusion Systems do?

CFS is developing high-tech machines that can produce clean and renewable electricity through a nuclear fusion process. Its approach contrasts with the fission process used in current nuclear power plants.

Fusion power plants promise many benefits over existing fission nuclear reactors. For example, fusion plants will be more efficient in converting fuel to electricity and won't produce radioactive wastes


SOURCE: COMMONWEALTH FUSION SYSTEMS

What other companies are building fusion power reactors?

A growing number of startups are joining the fusion electricity efforts and many deep-pocketed investors are coming out to back them. In addition to Commonwealth Fusion Systems, the other fusion startups are Helion Energy, Zap Energy, and Canada-based General Fusion.

Helion raised $500 million in November 2021 and might access an additional $1.7 billion if it meets certain targets. General Fusion recently raised $130 million from investors including Jeff Bezos. General Fusion is preparing for another fundraising in 2022 that could bring it even more money.

CFS has raised more than $2 billion since its founding in 2018. It plans to use the $1.8 billion fund raised recently to develop and operate a pilot fusion plant and start the work on a commercial plant.

Who owns Commonwealth Fusion Systems?

CFS started as a project of the Massachusetts Institute of Technology before it branched out. But it continues to collaborate with MIT on the fusion electricity program. After separating from MIT, the startup received $50 million in initial funding from Italian energy company Eni. The Italian multinational is excited about fusion energy prospects and it’s willing to put more money on promising projects.


In 2019, CFS raised $115 million in an investment round that also included Eni and investors like Bill Gates and Vinod Khosla. The startup is also backed by George Soros and John Doerr. The other investors are Singapore's Temasek, Google, Norway's Equinor, and JIMCO Technology.

Is Commonwealth Fusion Systems a publicly traded company?

Massachusetts-based Commonwealth Fusion Systems is a private company. The business is led by CEO Bob Mumgaard. The executive has said that the world is ready to invest in fusion electricity, which has a huge potential in accelerating the global energy shift.


SOURCE: COMMONWEALTH FUSION SYSTEMS FACEBOOK


Does Commonwealth Fusion Systems have an IPO plan?

CFS joins Elon Musk-led SpaceX as another highly anticipated IPO. Many investors think that they could be lucrative investments. Until now, neither Mumgaard nor investors like Gates have publicly discussed IPO plans for the startup.

However, sooner or later Commonwealth Fusion Systems might want to go public to raise more money as its cash need grows. The startup might need about $3 billion to set up the first commercial fusion reactor that it aims to get ready to start generating electricity by the early 2030s. CFS also plans to build more power plants in the future and even sell its fusion machines.

Investors can buy Commonwealth Fusion Systems stock before the IPO.

If you can’t wait for the Commonwealth Fusion Systems IPO, you can try to buy the stock in the private capital market. However, that might be a tall order for retail investors with small money. To participate in the private capital market, you might need to have $1 million in net worth or meet accredited investor requirements outlined in the SEC regulations.

A Massachusetts company leads as the race for fusion energy heats up

December 02, 2021
Bruce Gellerman
WBUR
Construction under way at the Commonwealth Fusion Systems campus in Devens. (Courtesy Commonwealth Fusion Systems)

Some of the same billionaires who pioneered the commercialization of space are now using their fortunes to fund companies to create the energy source of the stars on earth. And a new round of funding is sending MIT spin-off Commonwealth Fusion Systems into orbit.

The start-up company just closed on a $1.8 billion funding round making it the largest in Massachusetts history. Among the backers were billionaire Bill Gates, George Soros and venture capitalist John Doerr.

WBUR is a nonprofit news organization and our coverage relies on your financial support. Please give today.

Commonwealth Fusion predicts it will have the world’s first net-energy fusion device by 2025 and is already building a factory in Devens to make the machine.

Work is in high gear as Richard Holcomb, director of construction and facilities, walks the 47 acre site in Devens.

"Careful," he says, stepping over a just poured foundation wall.

Holcomb has worked on a lot of big projects, but he’s never built anything like this. The concrete walls? They’re 8 feet thick.

"All of it screamed at me like … wow, this is going to be amazing," Holcomb says. "So if there was an opportunity I had to be a part of it."

Holcomb works for Cambridge-based Commonwealth Fusion Systems. The campus he's building will be home to a factory producing devices that do what the stars do: convert mass into energy.

The first two buildings at Devens will house the company's headquarters and magnet manufacturing operation.

The second building will be home to its SPARC device, designed to be the world’s first net-positive fusion machine. It's a half-size prototype of a commercial device the company predicts will generate low cost, carbon-free electricity to the grid.

SPARC uses hydrogen, the most abundant element in the universe. With one proton, one electron and no neutrons, it's the simplest element found in the universe.

But fusing atoms isn't easy and harnessing the power released from the process has eluded scientists for 70 years. But now, using a variety of technologies, they are closer than ever to making a fusion device that can produce more energy than it took to start the reaction.
An MIT breakthrough and spinoff

The technology behind SPARC was created and tested in a cavernous lab on the campus of MIT in a building that was once a Nabisco cookie warehouse.

"We needed to be a fairly large room because we built the world’s largest fusion magnet in this room," says Bob Mumgaard, CEO and founder of Commonwealth Fusion Systems. Mumgaard got his Ph.D at MIT’s Plasma Science and Fusion Center.Commonwealth Fusion Systems' magnet test container and support systems, at MIT. (Robin Lubbock/WBUR)

The research center and Mumgaard’s company are collaborating to build a device that replicates on earth what intense gravity does in the center of stars. In stars, gravity compresses and heats hydrogen atoms into a plasma. The super hot conditions rip the atoms apart, releasing their protons and electrons, which under the intense stellar gravity, fuse together creating a tiny amount of helium and a huge amount of energy. Think the stuff that is used in balloons and Einstein's famous equation: E=MC2. Energy equals Mass times the speed of light (186,000 miles a second) squared. That's a lot of energy from a small amount of mass.

Theoretically, a fusion reactor fueled with a quart of hydrogen derived from seawater could heat 10,000 homes for a year. It's estimated that just 70 tons of hydrogren in a fusion plant could replace the energy produced by all of India's coal power plants.

The key to making fusion working on earth is controlling the super-hot hydrogen plasma in a device known as a tokamak, a bagel-shaped machine that uses super-powerful magnets to compress the plasma.

An effort by 35 nations has spent more than $20 billion building an experimental tokamak in the south of France. Known as ITER, it will weigh four times as much as the Eiffel Tower, but is not designed to produce net energy. It's a research device.

Building a better bagel magnet

Commonwealth Fusion Systems took different approach.

"You basically have to put a sun in a bottle," says Mumgaard, "It turns out, if you build a magnetic bottle that can actually hold the fuel at the same conditions stars get to, you can create and sustain fusion."

The philosophy at Commonwealth Fusion Systems is that, by building a smaller device, they can make commercially fusion plants sooner and cheaper. SPARC will be just 1/40th the size ITER
.
Bob Mumgaard, CEO of Commonwealth Fusion Systems, at MIT's Plasma Science and Fusion Center. (Robin Lubbock/WBUR)

The critical component MIT and Commonwealth Fusion built was the world’s most powerful superconducting magnet. It's encased in a stainless steel vacuum chamber, surrounded by tanks of liquid nitrogen.

"Buried inside there," says Mumgaard, "is a magnet that’s 10 tons, about 10 feet tall and it has the distinction of being made out of a material that allows it to go to a very high magnetic field."

The material is called high temperature superconducting wire. Actually, it's flat like a ribbon and the company is the largest buyer of the material in the world.

In a recent test, the new magnet was 400,000 times stronger than the earth’s magnetic field. Seven peer-reviewed research papers found if you could build magnets this powerful, it should be possible to build a working tokamak that produces net energy.
When you're hot you're hot. When you're not you're not.

"So the magnets will operate at 20 kelvin, roughly minus 400 degrees Fahrenheit," says Joy Dunn, head of operations for the company. That's relatively warm by superconducting standards. At this temperature the superconducting wires lose all resistance to the flow of electrons. This enables the magnets to compress the plasma to superhot temperatures and pressure, creating the conditions to make fusion energy inside the tokama.

"On the other side of the wall of the vacuum vessel, we’re operating the plasma at about 100 million degrees celsius, so it’s going to be largest thermal gradient in the world in just a matter of inches," Dunn says.


"If you look at what needs to be done for climate, to keep the planet in a livable range, we will not be able to build these things fast enough."BOB MUMGAARD

Inside the tokamak, the plasma fuel will be five times hotter than the center of the sun. But it's delicate, so there's nothing to be afraid of, says Mumgaard.

"Some people think of fusion as like lava … you know, hot like lava ... but that’s actually not what it is," he says. "It’s actually closer like a candle in the wind."

The conditions to make fusion in a tokamak are so difficult to create and sustain, which makes the devices inherently safe, says Mumgaard. They can't melt down.

"If you think about it, stars are out in space, they don’t touch anything," he says. "And that’s what you have to basically build in a fusion machine. And the minute it touches something, it doesn’t melt through like lava. It extinguishes like a flame."

Five years ago a tokamak at MIT's Plasma Science and Fusion Center produced, for a few milliseconds, the intense pressure and temperature needed to make fusion. The Center's director, Dennis Whyte, says the magnets used in that device, were made with ordinary copper wire.

"And when that turned on to produce that confining magnetic field, it consumed over 200 million watts of electrical power," he says. "So you say, 'Well, what a great scientific achievement; hotter than the center of the sun' ... but it's hard to imagine it as a practical power source because you're using so much electricity to generate the magnetic field."

Dennis Whyte, Director of the Plasma Science and Fusion Center at MIT. (Robin Lubbock/WBUR)

But the new high temperature superconducting magnet, like those that will be used in Commonwealth Fusion’s SPARC device, will consume just 20 watts,1/10,000,000th the amount of energy as the copper wire magnets. It means far lower costs to operate the company's device, making commercial fusion financially feasible.

"The idea is you get one major disruptive technological breakthrough and it speeds everything else up," Whyte says. "But the technology didn’t exist until it did a few weeks ago ... here."

MIT and Commonwealth Fusion Systems have formed a unique corporate-academic collaboration. They share a common agenda — making fusion energy viable — but have separate agendas. The company wants to make money; the University wants discoveries about the fundamental energy that powers the universe.

"Fusion is the greatest technological challenge that I think humanity has ever undertaken," says British plasma physicist Arthur Turrell. In his new book, “The Star Builders and The Race to Power the Planet,” he says we are closer than ever in achieving net energy from fusion devices and credits the emergence of private sector funding. "It’s not really about time," he said in a recent interview. "It’s about the investment that we’re putting into it as a society and the kind of priority that we give it and the number of people who are working on it."

The race to make commercial fusion heats up

There are about two dozen companies competing to produce fusion energy devices, promising unlimited safe power, free of carbon emissions.

Helion in Everett, Washington is backed by tech billionaire Peter Theil. Jeff Bezos is behind General Fusion in British Columbia, Canada, and Bill Gates has invested in Commonwealth Fusion Systems, which will have 300 workers when the Devens is

Mumgaard predicts that, by 2025, SPARC will produce ten times more energy than it consumes, and the company will have a commercial fusion device, capable of powering a town, in the early 2030s. He says the company will be selling them around the world.

"If you look at what needs to be done for climate, to keep the planet in a livable range, we will not be able to build these things fast enough," he says.

It’s a hopeful story, says Mumgaard. One that is unfolding in Devens, 35 miles west of MIT and 93 million miles from the sun.

This segment aired on December 2, 2021.


Bruce Gellerman Senior Reporter
Bruce Gellerman is an award-winning journalist and senior correspondent, frequently covering science, business, technology and the environment.
Nitrogen fertilizer shortage expected to drive down yields worldwide

By Sean Pratt
WEWSTERN PRODUCER
Published: December 2, 2021

The problem is particularly acute in Europe due to curtailed fertilizer production caused by the meteoric rise in natural gas prices. | File photo

A shortage of nitrogen fertilizer will likely result in reduced world production of crops like wheat and corn, says an industry executive.

“We do think yield on a global basis is going to be off next year, not because of demand destruction but just because there’s not going to be enough tons available,” said CF Industries president Tony Will.

He told investment analysts listening to the company’s third quarter 2021 earnings results conference call that farmers in countries like India and other places that rely on government subsidies won’t be able to compete for limited supplies of products like urea.

Isaure Perrot, agriculture consultant with Agritel, had a similar message at a recent webinar.

She expects wheat production costs in France to increase by 21 percent to US$241 per tonne in 2022 due to sky-high nitrogen fertilizer prices.

The problem is particularly acute in Europe due to curtailed fertilizer production caused by the meteoric rise in natural gas prices.

It’s going to be an issue elsewhere and not just for wheat. Corn production costs are expected to rise by 19 percent in Ukraine and 14.5 percent in the United States.

The upshot is there will likely be a reduction in corn, wheat and canola/rapeseed acres around the world in 2022 because those crops are heavy users of nitrogen. Crops such as pulses, soybeans and spring barley will likely get an acreage bump because they don’t need nearly as much.

The one exception will be European rapeseed because it was already planted before the run-up in nitrogen prices.


Perrot also anticipates a yield drag for crops like wheat and corn as farmers cut back on the nitrogen they apply.

There could also be quality problems. Low protein means less milling and more feed wheat.

She is forecasting a sharp reduction in wheat production among the world’s leading exporters.

“This nitrogen fertilizer story could have an impact on production of more than 10 million tonnes,” said Perrot.

That would result in tight supply for the main exporters of the crop.

She believes the market has already partially factored this into prices but if the situation unfolds the way she thinks, a further price hike is likely in the cards.

Mike Nash, senior editor of fertilizers with Argus Media, said a perfect storm of events has led to the supply shortfall, including Hurricane Ida that caused CF Industries to close its huge production plant in Donaldsonville, Louisiana.

That prompted unusually early spot imports into the U.S. market with January through August urea imports running 800,000 tons ahead of last year’s pace.

Sky-high natural gas prices forced Ukraine to shutter half of its production capacity and there have been serious curtailments in the Netherlands and the United Kingdom.

Production is just starting to trickle back in Europe after serious cutbacks this fall.

More than 11 million tonnes of ammonia in Europe was not being upgraded into products like ammonium nitrate, urea and UAN, so Europe was forced to import granular urea from Egypt and other suppliers.

But urea is hard to find. Chinese production is limited by environmental controls, flooding, electrical blackouts and high coal costs.

On top of that, the Chinese are curtailing exports of urea through mid-2022, a big deal since it typically supplies about 5.5 million tonnes of the product annually or 10 percent of global trade.

India typically buys half of this. The restrictions couldn’t come at a worse time for them because September through January is their peak importing season.

Export restrictions have also been implemented in Russia and Egypt, but those are not as significant as China’s, said Nash.

The upshot is nitrogen fertilizer will be in short supply for the foreseeable future, said Bert Frost, senior vice-president of sales for CF Industries.

“We believe global supply will remain constrained in the near-term, with relief unlikely to appear anytime soon,” he said.

That means higher prices. Urea is three to four times what it was a year ago in markets like Egypt, France, Brazil and the U.S.

Will was asked if the high prices will lead to demand destruction but he said that is not the case.

“This is more of a supply constrained market. The demand is definitely there,” he said.

India is desperately trying to pull in product. Brazil’s imports are up 10 percent. CF Industries is reporting that orders for the first quarter of 2022 are generally very strong.

Will said new capacity coming on line in Russia and Nigeria won’t be enough to cover the current deficit and it won’t hit the market for a couple years.

However, Frost said there should be enough product to satisfy the needs of North American farmers who can afford to “bid away” tons from other regions of the world.

The company is anticipating the largest fall application program in the U.S. since 2012 followed by a strong spring, since current economics favour corn over soybeans.

Matt Conacher, senior manager of fertilizer with Federated Co-operatives Limited, disagrees with Frost’s assessment.

He offered up different advice for growers in Western Canada.

“Over the next few months, buy a good portion of your fertilizer needs and, if you can, bring it to farm to assure your supply,” he said.

Conacher said retailers are not going to want to be long on product heading into spring because they realize there is a very good chance prices will tumble during the summer reset period.

Op-Ed: What’s Driving Fertilizer Prices and What Can Be Done


"In recent months, higher global natural gas prices have had an impact on fertilizer prices. The greatest challenge to global fertilizer production now is in Europe, where natural gas prices have quadrupled this year," says TFI.
(Margy Eckelkamp)

This guest commentary was provided by The Fertilizer Institute: 

Today’s high fertilizer prices are hardly a secret. The underlying reasons for the cost of these critical products, however, are multiple, and ultimately determined by a complex interplay of domestic and international political and economic factors. In fact, fertilizer prices are generally set by supply and demand dynamics just like other globally traded commodities, such as corn, soybeans, and wheat. The recent increases are even more pronounced given that many fertilizer prices were near 10-year lows from mid-2019 to mid-2020. To say that farmers have noticed would be an understatement, even though fertilizer prices in the United States are in many cases among the lowest in the world.

Fertilizer is essential to growing the food, fuel, and fiber our world relies upon. Because fertilizer is often a farmer’s largest input expense, any increase is going to be felt. Going without fertilizer is not an option, so farmers are left with tough choices. Do they stay the course hoping crop prices remain high and help buoy farm profitability? Do they plant a less fertilizer-intensive crop in the spring? Do they use less product and hope their yields don’t suffer? No matter the decision made, it is understandable that farmers are left uncertain, fearful, and even angry about how to handle the current rise in prices.

This year has also seen several unique situations that, taken together, have negatively affected the global fertilizer industry. This was a record year for fertilizer production facility maintenance “turnaround” activity. These scheduled events typically last several weeks and are required every few years. Due to COVID-19 restrictions last year, maintenance was deferred on a global scale. Through mid-year, the International Fertilizer Association reported production was down 3 percent for ammonia, owing to this combination of factors. Weather disruptions have impacted global supply availability and the United States was one of the hardest hit, where U.S. fertilizer producers also faced production disruptions this year from the impact of ice storms in February and Hurricane Ida in August. 
 
In recent months, higher global natural gas prices have had an impact on fertilizer prices. The greatest challenge to global fertilizer production now is in Europe, where natural gas prices have quadrupled this year. These costs led many facilities to idle as production costs exceed market prices. In addition to rising natural gas costs, shortages of coal in Asia, which this region uses to manufacture nitrogen, have contributed to rising fertilizer prices, as well. 

International events have also driven up costs. For example, sanctions on Belarus have affected the availability and price of potash. Additionally, China, which accounts for 25 percent of global phosphate exports and 10 percent of global urea exports, has placed an export ban on phosphate and nitrogen fertilizer materials, further tightening the global market. Other countries have also announced restrictions on fertilizer exports to ensure their own domestic supply. 
 
All these factors matter because farmers cannot just skip fertilizer applications. Manufactured and mined fertilizer of three elements – nitrogen, phosphorous, and potassium – are all necessary ingredients for the success of the world’s food supply. In fact, fertilizer is essential to feeding about 40 percent of the world’s population and preventing significant deforestation by improving soil yield. Simply, fertilizer is critical to our collective ability to grow enough food to feed the world.

So, what can be done?
 
The entire fertilizer industry value chain, from producers to wholesalers to importers to retailers, is working hard to address these issues. U.S. manufacturers and importers are working closely with wholesalers and retailers to help U.S. farmers continue to have access to reliable sources of fertilizer. Domestic fertilizer manufacturers are producing at capacity and have invested in new and upgraded production and storage facilities over the last decade to provide a reliable source of fertilizer supply to the American farmer, while also creating thousands of good-paying jobs and supporting local communities. 

Government policy in several areas can support the industry and its customers. The current supply chain crisis is a stark reminder that infrastructure is of the utmost importance to all businesses, including the movement of domestically produced and imported fertilizer. Trucking capacity and the shortage of drivers need to be addressed, as do rail shipping rates and other modernization of rail oversight. In the medium-to-long term, the new investment in American’s road, inland waterway, and other core infrastructure that will come from the Infrastructure Investment and Jobs Act will enable the industry to move product more efficiently and cost-effectively. 

Another area of policy focus must be ensuring we do not exclude ourselves from our own essential resources. It is vital that fertilizer producers have access to affordable natural gas and other energy supplies, which also includes the pipelines that move these materials. As well, there needs to be improvements in the permitting process, which is unpredictable and often delayed. For potash and phosphate mining operations, for example, acquiring the proper mining permit can take years and often costs more than $10 million. 

Weathering the storm of the global supply and demand challenges will be best accomplished through strong collaboration between suppliers and customers. Growers should know that the U.S. fertilizer industry is committed to keeping the lines of communication open in anticipation of the spring planting season.








MANURE PROVIDES FARMERS AN ALTERNATIVE NUTRIENT SOURCE AMID VOLATILE FERTILIZER MARKET

In the past year, the cost for urea and diammonium phosphate have more than doubled. With no end in sight, some producers are looking at alternatives like manure.

Daniel Andersen, Associate Professor at Iowa State University, says that farmers interested in integrating manure as a fertilizer have the possibility for great outcomes in terms of improved soil health and crop nutrition.

“One of the things I like to say is that manure is a complete fertilizer, but it isn't always a balanced fertilizer,” says Andersen.

Andersen says that some manure will have more phosphate or excess nitrogen, when what the crop really needs is potassium. When deciding whether or not to spread manure, it's important to determine the type of manure necessary for the particular crop type and current soil nutrient makeup. For example, if a farmer has planted a crop that needs a lot of phosphorus, but has soil that is low in phosphorus, they should shop around for nitrogen-rich manure, like poultry.

“Oftentimes manures can be only transported a few miles to keep price competitive with synthetic fertilizers and with a liquid manure that application distance is probably somewhere in the neighborhood of one to five miles that we're willing to move it and still have it be cost competitive with purchasing other synthetic fertilizers,” says Andersen. 
 
Dan Luepkes, a farmer in Oregon, Illinois, has been using chicken manure on his farm for almost four years. Luepkes is part of a few groups that focus on high-yield crops, including XtremeAg, and says some of the members from the south— where the use of chicken manure is more predominant—had been discussing how effective it was on their fields and he decided to give it a shot. 

“It's natural versus synthetic fertilizers,” says Luepkes. “Natural fertilizers have no added salt, so it's more usable for the plant. It also contains some additional micronutrients and calcium that you're not getting in synthetic fertilizers unless you buy all those additional micronutrients.”

Luepkes travels up to 100 miles to bring chicken manure to his farm. Because of the distance he has to haul it, he says it is almost as expensive as using synthetic fertilizer. Luepkes brings the manure in and works it into the soil in the fall, partially out of preference and partially because of the manure regulations in Illinois. While the process is expensive, due to the travel distance and equipment–he owns nearly $250,000 of spreading equipment–Luepkas has seen a definite improvement of micronutrients in his field.

Luepkes says that as he has run soil tests after using manure on his fields, he is seeing an increase in microbiology and insect presence, which brings additional carbon to the soil and increases the overall soil health, something Andersen recommends before purchasing manure. As the nutritional value of manure can change from farm to farm and from season to season, a soil test allows farmers to know exactly what nutrients their soil needs and what kind of manure to look for. Andersen also recommends requesting a manure sample from the farm before you buy.    

As the use of manure gains in popularity, Andersen is noticing a trend. While producers are using the manure being generated on their farmers or purchasing to spread, they are also exploring other sources to rebuild and maintain soil health, not just to bolster crop growth. Sometimes, a producer's field is in need of extra nitrogen, and the manure they are producing is not nitrogen rich. In these cases, choosing to apply purchased manure that is nitrogen rich, such as poultry, would be a good option. 

“I’ve seen some swine producers choose not to put their own manure in portions of their fields and instead use poultry litter to try and build soil health,” Andersen says.

Luepkes says that as he has run soil tests after using manure on his fields, he is seeing an increase in microbiology and insect presence, which brings additional carbon to the soil and increases the overall soil health. 

More farmers are asking questions about manure as a source of nutrients for their crops. Luepkes says that while manure is a good way to get nutrients into the soil, it isn’t as simple as just deciding to go out and spread. 

“It’s a lot more labor and management intensive,” says Luepkes. “You have to truck it to the farm, spread it. It's pretty hard to hire someone to do that. It's not as readily available as your commercial fertilizers.”

Andersen says when it comes to manure, hitting the right application rate is critical to making more money per bushel. Finding the right application method and the right system are all key to turning a profit in the first few years.