Lower demand for electric cars dents GM’s sales


By AFP
January 5, 2026


The GMC Sierra was among the models that helped General Motors report higher auto sales in 2025 compared with the prior year - Copyright AFP/File Matthew Hatcher
John BIERS

General Motors reported a dip in fourth-quarter US auto sales Monday, reflecting a sharp decline in electric vehicle transactions amid a broader slowing car market.

But the US auto giant also achieved an annual sales increase, pointing to growth in pickups and crossovers sales as evidence of resonance with consumers despite offering lower incentives than the industry average.

The Detroit giant reported 703,000 deliveries in the final quarter of 2025, a drop from the year prior of 6.9 percent, in a period characterized by tepid consumer confidence surveys.

Other carmakers to report a drop in US sales in the fourth quarter included Honda, Nissan and Volkswagen, while Toyota and Stellantis were higher.

Analysts at Cox Automotive had estimated a 4.7 percent drop in overall US car sales in the fourth quarter, with concerns about a weakening job market, high interest rates and cost-of-living pressures weighing on sentiment.

A driver of GM’s decline was a pronounced fall in EV sales from the third quarter, when consumers raced to take advantage of a $7,500 tax credit that expired at the end of September, earlier than initially intended due to legislation championed by US President Donald Trump.

EV sales at GM were 25,219 in the October to December period, less than half the level in the third quarter of 2025.

GM’s annual sales were 2.8 million, up 5.5 percent from 2024. Among the vehicles with sizable gains were the Chevrolet Equinox, a small “crossover” sport utility vehicle and the GMC Sierra line of pickup trucks.

“Demand for our brands and products is strong at every price point, and we are well-positioned to build on this momentum in the year ahead,” said GM senior vice president Duncan Aldred.

At Toyota, fourth-quarter sales rose about eight percent to 652,195, in line with annual growth of comparable percentage. Total sales were 2.5 million for 2025.

Toyota models with significant year-over-year sales increases included the Grand Highlander SUV and Tacoma pickup.



– Tariff effect? –



Stellantis, meanwhile, scored a four percent increase in the fourth-quarter to 332,321, helping to reduce the size of its annual drop after a number of weak quarters.

Stellantis annual sales fell three percent to 1.3 million.

“With consecutive quarterly sales increases and market share growth, it’s clear that we are taking the right steps to reset our business in the US,” said Jeff Kommor, head of US retail sales, who pointed to five new vehicle launches scheduled for 2026.

Throughout 2025, automakers were faced with a fast-changing policy environment as Trump announced myriad tariff actions and moved to gut climate measures enacted under predecessor Joe Biden.

Tariff costs did not lead to significant hikes in retail prices in 2025, in part because dealers were selling autos from inventory.

However, analysts say consumers may see greater car price hikes in 2026 due to tariffs, potentially affecting demand.

Cox estimates that US sales will come in at 15.8 million in 2026, or 2.4 percent below its projection for 2025 sales.

From longest night to quiet observance: how the winter solstice is marked across the MENA region

The winter solstice fell across the Middle East on 21 December, marking the shortest day of the year.

The New Arab Staff
21 December, 2025

From this point on, daylight hours gradually begin to lengthen again, leading towards the spring equinox in March [Getty]

Across the Middle East and North Africa, Sunday 21 December marked the winter solstice, the astronomical moment when the Northern Hemisphere experiences its shortest day and longest night of the year.

The phenomenon marks the official start of winter in the Northern Hemisphere, as the Earth's axis tilts away from the sun and sunlight falls directly on the Tropic of Capricorn at 23.5 degrees south latitude.

From this point on, daylight hours gradually begin to lengthen again, leading towards the spring equinox in March.
Longest night across the Arab world

In much of the Arab world, the solstice is noted primarily as a scientific and seasonal milestone rather than a cultural one. Media outlets and meteorological or astronomical bodies across the Gulf and wider region highlighted Sunday as the day of the shortest daylight hours and the longest night of the year.
Related

In Qatar, the Qatar Calendar House announced that the winter solstice occurred at 6:04 pm local time, coinciding with the sun's apparent alignment over the Tropic of Capricorn.

Astronomical experts said the day had marked the shortest daylight hours of the year in the country, with the sun appearing at its lowest noon elevation and casting the longest shadows.

Similar explanations were shared in Saudi Arabia, where climate expert Abdullah Al Misnad said winter officially began in the evening hours, lasting around 89 days. He noted that all locations north of the equator experience their shortest day at this time, regardless of temperature fluctuations, which are governed by atmospheric conditions rather than astronomy.

In Egypt, astronomers described the solstice as the peak of winter in the Northern Hemisphere, with daylight lasting around 10 hours compared to roughly 14 hours of night. The sun’s low arc across the sky means shadows reach their greatest length at midday.
Cultural silence in the Gulf

Despite this widespread astronomical awareness, Gulf countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE do not traditionally mark the winter solstice with festivals or rituals.

Cultural calendars in the Gulf are centred on Islamic lunar events such as Ramadan, Eid al-Fitr and Eid al-Adha, as well as national days. Pre-Islamic seasonal observances linked to solar cycles were largely replaced after the spread of Islam, leaving the solstice without deep cultural roots in Arab or Bedouin traditions.

Shab-e-Yalda: Afghans in US mark year's longest night
Afghans
Brooke Anderson

Any modern acknowledgement tends to be educational rather than celebratory, appearing in science columns, weather apps or social media posts by observatories and astronomy enthusiasts.

In cities such as Dubai or Doha, hotels or expat communities may occasionally reference the solstice, but it is not marked as a shared public or family tradition.
Yalda night and the Persian cultural sphere

Further east, however, the longest night carries powerful cultural meaning. In Iran and across parts of the wider Persian cultural world, the winter solstice is marked by Shab-e Yalda, an ancient celebration dating back more than two thousand years.

Yalda, whose name is derived from a Syriac word meaning "birth", symbolises the rebirth of the sun and the victory of light over darkness as days begin to lengthen.

Families gather on the solstice night to stay awake together, sharing food, poetry and stories until after midnight or dawn.

The celebration is deeply rooted in pre-Islamic Iranian traditions, including Zoroastrian and Mithraic beliefs, and remains a central cultural event in Iran today.

Rituals often include reading poetry by Hafez, storytelling from classical texts such as the Shahnameh, and eating symbolic red fruits such as pomegranates and watermelon, representing life, warmth and the promise of brighter days.

hab-e Yalda is also observed in Afghanistan, Tajikistan, parts of Azerbaijan and Turkmenistan, and among Kurdish communities, reflecting the reach of Persianate culture across the region.

More mines, more ounces: A decade of gold gains turned Canada into a mining powerhouse

By Anam Khan

October 22, 2025

A contractor works at the underground at LaRonde mine in the Abitibi-Témiscamingue region, Quebec, Canada.

Gold keeps setting records and Canada is producing a lot more of it.

High gold prices over the past decade have driven new mine openings and expansions pushing Canada’s gold output up 31 per cent, according to the Mining Association of Canada.

It pushed Canada past the U.S. into number four in the world two years ago, and Canada is still climbing with fresh projects, producing about 198 tonnes of gold in 2023, worth roughly $16 billion, according to Natural Resources Canada.

“All we’ve been opening up is gold mines,” Pierre Gratton, president and CEO of the Mining Association of Canada told BNN Bloomberg in an interview.

He said in the last 15 years, mining for base critical minerals haven’t grown as much because their prices have stayed low.


But gold has been the bright spot, he said, with global prices up nearly 150 per cent over the past decade and surpassing US$4,300 an ounce this week.

“Gold just has continued to grow,” said Gratton.

Gratton said permits for gold mines are often quick and take three to five years to get approved because they’re smaller than big open-pit or base-metal projects and they tend to be easier and faster to assess.
A decade of expansion

Ontario and Québec have represented more than 70 per cent of Canada’s gold output in recent years according to Natural Resources of Canada.

Gratton confirms several new mines have entered production, including B2Gold’s Goose mine in Nunavut, Agnico Eagle’s Odyssey mine in Quebec, Equinox’s Valentine mine in Newfoundland and Labrador, Artemis Gold’s Blackwater project in British Columbia, and Osisko’s Cariboo Gold, now under construction in British Columbia.

Kinross is advancing its Great Bear project in Ontario’s Red Lake region, while Agnico is expanding Upper Beaver in Ontario

.  

IAMGOLD’s Cote Gold open pit mine, located off Highway 144 between Timmins and Sudbury, had its official ribbon-cutting ceremony as production ramps up. (Lydia Chubak/CTV News Northern Ontario)

IamGold’s Coté Gold began operations last year in Ontario, and Equinox’s Greenstone mine has entered production in Ontario.

Copper expansions such as Newmont’s Red Chris project in British Columbia is expected to add to national gold output.

This week, IAMGOLD announced deals to acquire Northern Superior Resources Inc. and Mines d’Or Orbec Inc. in Quebec, a combined transaction worth roughly C$392 million.


“That’s a lot of new activity,” Gratton said.

High prices, high performance

A surge in gold prices is fueling record profits for producers.

Agnico Eagle, Canada’s largest gold miner, said it’s staying disciplined despite soaring prices, posting record free cash flow and reaching $1 billion in net cash by June.

“With the higher gold prices and solid operational results, we have achieved record financial performance and generated record free cash flows in the first half of 2025,” Jean-Marie Clouet, Vice President of Investor Relations at Agnico Eagle Mines Limited, told BNN Bloomberg in an email.

The company said it is exploring ways to boost value, from extending the life of aging mines to using idle plant capacity and reviving projects made profitable by higher gold prices.
What’s next if prices stay high?

Canada’s production base is set to expand into the 2030s if today’s prices hold.

Agnico outlined five internal projects it believes could lift its output to 4.0 to 4.3 million ounces annually in that decade.

Plans include growing Detour Lake toward one million ounces a year, expanding Canadian Malartic with a second shaft and satellite deposits, building Upper Beaver in Ontario and Hope Bay in Nunavut.

The company is also developing the San Nicolás copper-zinc project in Mexico. All five projects are being internally funded.

Gold industry-wide, Gratton expects “next year’s numbers to be better than this year’s” as new Canadian capacity ramps.

The only issue is a worker shortage. Gratton said the industry needs mining engineers and skilled trade workers across the board.

“We need to attract more young people into this industry.”
Beyond the surge, Canada’s clean reputation

Canadian miners are recognized globally for clean, responsible operations.

TD Securities’ Bart Melek noted that Canadian producers are “among the most ethical and environmentally responsible in the world,” a factor that boosts their reputation with investors and governments alike.

Gratton said Canada also has a competitive edge because of the Royal Canadian Mint. It plays a key role in Canada’s gold sector, because it is a trusted national institution that helps Canadian gold reach global markets.

In this file photo, the Royal Canadian Mints' world's first 100-kg 99999 pure gold bullion coin with a $1 million face value sits among much smaller 1oz gold coins at its unveiling, in Ottawa Thursday May 3, 2007.(CP PHOTO/Tom Hanson) CANADA

“Most of the mines send their gold to the Mint., and the Mint is also the minter of currencies all over the world, not just Canada’s,” said Gratton.

He explained, the Royal Canadian Mint sells gold to the London Bullion Exchange, where it enters global circulation, and reinforces Canada’s reputation for responsible, high-quality production.

“It’s one of the lesser known jewels in Canada’s crown,” said Gratton.

Anam Khan
Journalist, BNNBloomberg.ca

GM cuts EV production in Canada, cites Trump backpedal

NATIONALIZE GM UNDER WORKERS CONTROL

By AFP
October 21, 2025


General Motors is ending production of electric vehicles at one of its plants in Canada - Copyright AFP/File Jorge Uzon

General Motors said Tuesday it was ending production of an electric vehicle at a plant in Canada, a further blow to the country’s auto sector tied to President Donald Trump’s opposition to EVs.

Canada’s auto industry has been battered by Trump’s global tariffs on foreign-made vehicles, but GM’s decision to stop production of an EV van in Ingersoll — about 160 kilometers (99 miles) west of Toronto — was not directly linked to the trade war.

GM made a specialized zero-emission delivery van at the Ingersoll plant, used by companies like FedEx for urban deliveries, but the company said demand for the vehicles “developed much slower than expected.”

“The elimination of tax credits in the United States (for EVs) has made the business even more challenging,” GM said.

Trump has slashed support for EVs, ending a tax credit of up to $7,500 for vehicle purchases.

That has forced a pivot by automakers like GM, which had aggressively invested in EV capacity throughout the presidency of Trump’s predecessor, Joe Biden.

Canadian autoworker union Unifor said GM’s announcement will impact more than 1,000 jobs.

“After billions of dollars in public support to build an EV future, Canada cannot allow companies to simply walk away the moment there is pressure from Washington or turbulence in the market,” said Unifor national president Lana Payne.

Canada has hoped to become a major player in the auto industry’s shift to EVs, given its substantial deposits of the critical minerals essential for EV batteries.

The country has pitched itself as an ideal location for end-to-end EV production, where the minerals could be extracted, processed, and then brought to plants for battery-making.

But that bet appears to have been badly timed.

Experts from Western University said last month that eight EV manufacturing plants in Ontario had received a combined Canadian $43.6 billion ($31 billion) in government subsidies.

Five have already been forced to suspend or delay their activities amid a softening in EV demand.

General Motors ending BrightDrop production in Ingersoll, Ont.

By The Canadian Press
Updated: October 21, 2025 

‘We need to make sure that we fight for these jobs’: Joly on Brightdrop production ending

‘It’s devastating’: Ingersoll, Ont. mayor on GM ending BrightDrop production at town's plant

General Motors has announced an end to production of its electric delivery van at its Ingersoll, Ont., plant just a week after Stellantis said it would be moving production planned for its Brampton, Ont. plant to Illinois.

The two automakers cutting planned production in the province in as many weeks has labour leaders and politicians signalling more aggressive efforts to push back against the companies in an effort to save the industry.

“We have to stand up and say enough is enough, we’re fighting back,” said Unifor national president Lana Payne.

She wants government to be ready to use counter-tariffs against automakers, which companies currently have a reprieve from as long as they keep their footprint and employment in Canada.

While there’s a balance to strike between courting companies and punishing them, Payne said the current approach clearly isn’t working as the roughly 3,000 workers in Brampton and more than 1,000 in Ingersoll no longer have a clear future ahead.

To stop the trend, companies need to feel pressure from more than just the Trump administration, she said.

“The only way that we can keep production in Canada, and make sure we’re keeping these jobs here and saving the auto industry, is these companies have to feel pressure from us too. That is critically important.”

Provincial and federal leaders have also signalled a shift to a stronger response, including the federal government last week threatening to sue Stellantis for breach of contract by cutting its Canadian footprint.

Federal Industry Minister Mélanie Joly said Tuesday that after speaking with Unifor and Ontario leaders they had agreed to create a response group to make a more co-ordinated fight for the auto industry.

“We need to make sure that we fight for these jobs, that there are new models coming back to Ingersoll, and that GM has a bright future here in Canada,” said Joly before heading into a cabinet meeting.

Ontario Economic Development Minister Vic Fedeli said he’s already expressed to GM his disappointment.

“The message was very clear, this is not acceptable,” he said. “But the real point is this assault on the Canadian auto sector has to stop.”

He said the province is reviewing contracts in place with both GM and Stellantis after both it and the federal government provided funding to the companies to invest in the auto plants they’ve now left in limbo.

All three parties met with Stellantis on Monday, and Payne said she was encouraged to see both governments backing up labour.

“We’re going to be working together with both levels of government to hold the feet of these companies to the fire and to say you made commitments here, we expect you to live up to them,” said Payne.

General Motors said the decision to end production of the BrightDrop vehicle was demand-related, and it wasn’t moving production elsewhere.


The company had already temporarily cut production in April before fully idling the plant in May, leaving more than 1,200 unionized workers temporarily laid off. The plant was supposed to restart operations in November with a single shift that would have meant around half that number heading back to work.

Kristian Aquilina, president of GM Canada, said in an interview that there are no firm plans in place for the plant.

“With this news just fresh, we’ll now assess the future opportunities for the plant,” Aquilina said.

“We’re very energized now as a result of this news to find other solutions, but we don’t want to get ahead of ourselves. We’re looking at various opportunities.”

Aquilina said the decision to end production of the BrightDrop had nothing to do with tariffs, but others say the trade war is having an effect on the company’s decisions.

Payne said the plant was hit both by Trump’s decision to hit Canada with tariffs and to dismantle EV supports.

Flavio Volpe, president of the Automotive Parts Manufacturers’​ Association, said that the uncertainty caused by tariffs has likely contributed to the decision to simply end production, rather than replace it with another product.

“They could have put that Equinox production back where they took it from,” said Volpe.

“They chose not to because the uncertainty around this Trump tariff war.”

The plant previously produced the popular Chevy Equinox model before shutting production in 2022 to retool the plant for the BrightDrop.

He said he’s encouraged that the company has idled the plant, rather than formally closed it, but that the federal government also needs to be prepared to use what means it has to ensure automakers to stay in Canada.

That includes both incentives like the $5 billion restructuring fund to help companies produce for the Canadian market, as well as sticks like tariffs.

“You have to use every lever that you think you have.”

By Ian Bickis
With a file from Nick Murray in Ottawa.
This report by The Canadian Press was first published Oct. 21, 2025.

GM shares soar on better tariff outlook and EV backpedal


By AFP
October 21, 2025


General Motors CEO Mary Barra has shifted investment away from electric vehicles in response to the policies under President Donald Trump - Copyright GETTY IMAGES NORTH AMERICA/AFP/File CHIP SOMODEVILLA

John BIERS

General Motors shares soared Tuesday after reporting strong results as it adjusts strategy over US President Donald Trump’s tariffs and slashing of economic support for electric vehicles.

The giant US automaker — which has faced tough questions over the impact of Trump’s policy pivots — reported better than expected third-quarter profits and boosted some full-year projections.

The good results came despite a $1.6 billion hit to write down EV investments and $1.1 billion in tariff costs in the third quarter.

Profits fell 56.6 percent to $1.3 billion, while revenues dipped 0.3 percent to $48.6 billion.

But shares rocketed up more than 15 percent in a sign investors believe better profitability lies ahead after GM’s heavy lifting in recent months to reposition the company.

“When we have a clear challenge in front of us, that’s when the team does their best work,” Chief Executive Mary Barra said on a conference call.

“We don’t sit around and you know look to blame others. We just say, ‘Okay, here’s the situation, how are we going to adjust to it and how quickly can we do it?”


– Pivot away from EVs –


GM reported increased deliveries in the United States and China compared with the prior-year period, while vehicle pricing remained solid, with dealer inventories below year-ago levels.

Executives described the US market as “resilient” with still-healthy demand for GM’s fleet of gasoline-powered vehicles, which is dominated by sport utility vehicles and trucks.

GM also scored a jump in EV sales in the United States in a quarter that culminated with the September 30 expiration of a US tax credit of up to $7,500 for vehicle purchases. Executives said EV sales are on track for a drop in the fourth quarter but are expected to stabilize in 2026.

GM earlier this month announced the $1.6 billion cost hit from the changes in EVs.

The automaker had been aggressively investing in EV capacity throughout the presidency of Trump’s predecessor, Joe Biden. It announced in 2021 a target of having its cars and trucks emissions-free by 2035.

Barra, in a letter to shareholders, said EVs “remain our North Star,” but that the company’s pivot was needed in recognition that the transition in the United States will take longer.

“By acting swiftly and decisively to address overcapacity, we expect to reduce EV losses in 2026 and beyond,” Barra said.

At the same time GM has pulled back some EV capacity, it has bolstered investments in US plants in response to the tariffs.

In June, GM announced $4 billion in investments to expand production of plants in Michigan, Kansas and Tennessee in a plan that also shifts towards a greater mix of vehicles with internal combustion engines.

– Tariff policy tweaks –

Barra had a trying relationship with the White House during Trump’s first term. On Tuesday, she thanked “the President and his team” for adjusting tariff policies, including a shift on Friday that lets the company offset some of the costs of tariffs on imported parts through 2030.

GM now sees its 2025 tariff cost hit at between $3.5-$4.5 billion, down $500 million from an earlier forecast.

The company projected full-year adjusted profits of between $12 billion and $13 billion, up from the prior range of $10-$12.5 billion.

Executives declined to go into detail on their outlook for next year, but Chief Financial Officer Paul Jacobson said “we do expect that 2026 can be better than 2025.”

Analysts at JPMorgan Chase have estimated that GM’s 2026 results could benefit $1 billion from a US-South Korea trade agreement that has yet to be finalized and another $1 billion annually from Trump’s watered down fuel economy rules.

“The overall impression is of a company firing on all cylinders within the context of those factors that management can control, and with improving visibility with regard to those factors outside management’s control,” said the JPMorgan note.

 

GM Faces $1.6 Billion Loss as EV Demand Slows

By ZeroHedge - Oct 15, 2025

• General Motors will incur a $1.6 billion loss to scale back its electric vehicle (EV) operations, citing weaker expected demand due to recent U.S. policy changes, including the end of federal EV tax credits and loosened emissions rules.
• 
  
• The decision follows the expiration of the $7,500 federal EV tax credit on September 30, which was a key driver of EV sales and was terminated as part of a broader policy rollback under President Trump.
• 
  
• Despite the planned cutbacks in EV investments, GM reported strong overall U.S. vehicle sales through the first three quarters of 2025, with certain electric models like the Chevrolet Equinox EV and Cadillac Lyriq performing well.
• 
  

General Motors said on Oct. 14 that it will bear a $1.6 billion loss to scale back its electric vehicle (EV) operations, citing weaker expected demand following recent U.S. policy changes that ended federal EV tax credits and loosened emissions rules.

The Detroit-based automaker said its Audit Committee approved the loss on Oct. 7, covering the three months ended Sept. 30.

The company noted that the loss is part of its plan to realign EV production and factory operations to better match customer demand.

The decision was made after the expiration of the $7,500 federal EV tax credit on Sept. 30, part of a broader policy rollback under President Trump.

The credit, officially started under the Energy Improvement and Extension Act of 2008, revised under The American Recovery and Reinvestment Act of 2009, and expanded under former President Biden’s 2022 Inflation Reduction Act, had been a key driver of EV sales in the United States. Trump signed the One Big Beautiful Bill Act on July 4, which set Sept. 30 as the final date for receiving EV purchase credits, effectively terminating the benefit.

“Following recent U.S. government policy changes, including the termination of certain consumer tax incentives for EV purchases and the reduction in the stringency of emissions regulations, we expect the adoption rate of EVs to slow,” GM said in a filing.

GM shares fell 2.5% in premarket trading, but have rebounded since as the broad market recovered...

As Evgenia Filimianova details below for The Epoch Times, according to the filing, $1.2 billion of the loss is related to non-cash impairments, mostly write-downs of EV assets.

The remaining $400 million will be paid in cash for contract cancellations and commercial settlements tied to EV investments.

The company said its review of EV manufacturing and battery component investments is ongoing.

“It is reasonably possible that we will recognize additional future material cash and non-cash charges that may adversely affect our results of operations and cash flows in the period in which they are recognized,” GM added.

GM noted that the costs, along with several smaller ones this quarter, will be recorded as adjustments in its non-GAAP results, which exclude one-time items from the company’s official earnings reported under generally accepted accounting principles (GAAP).

The automaker also said its EV realignment will not affect current Chevrolet, GMC, and Cadillac electric models, which “remain available to consumers.”

The all-electric F-150 Lightning from Ford is displayed at the Los Angeles Auto Show in Los Angeles on November 18, 2021. Frederic J. Brown/AFP via Getty Images

Industry Changes

GM had previously pledged to invest up to $35 billion in electric and autonomous vehicles through 2025, aiming to transition most of its portfolio to zero-emission models later in the decade.

However, slower-than-expected consumer adoption, high production costs, and uncertain government policy have made that goal more difficult to achieve.

GM joins other automakers reassessing the EV market, including rival Ford Motor Co. Last year, Ford said it would take a $1.9 billion hit from plans that included canceling an all-electric SUV and delaying an electric pickup truck.

Despite the planned cutbacks, GM said this month that its overall sales remain strong. The automaker reported total U.S. vehicle sales of 2.2 million through the first three quarters of 2025, its fastest pace in a decade.

GM said the Chevrolet Equinox EV was the best-selling electric model outside Tesla, while its Cadillac Lyriq, Optiq, and Vistiq models all ranked among the top 10 in U.S. EV sales.

Analysts have said that the end of the federal EV tax credit “will test whether the electric vehicle market is mature enough to thrive on its own fundamentals or still needs support to expand further.”

In a Sept. 2 report, Duncan Aldred, GM’s North America president, said the company expects lower EV sales next quarter after the tax credits end on Sept. 30. He added that it may take a few months for the market to steady.

“Still, we believe GM can continue to grow EV market share,” he wrote. “We are seeing marginal competitors dramatically scale back their products and plans, which should end much of the overproduction and irrational discounts we’ve seen in the marketplace.”

By Zerohedge

‘Willingly Forgoing Paychecks’: Federal

Workers Support Shutdown Fight

By Jenny Brown

October 2, 2025

Source: Labor Notes

Federal workers marched May 1 in New York City against drastic cuts to their agencies. Over 200,000 federal workers are now gone. Photo: Jenny Brown


A coalition of unions in the federal sector signed on to an extraordinary Federal Unionists Network letter September 29 urging the Democrats to fight Trump administration cuts, even at the price of a government shutdown. It was titled “No Bad Budget in Our Name,” and signers represent tens of thousands of federal workers.

Now that the shutdown has started, FUN is organizing a response among federal unionists, stating: “This is much more than a fight between branches of government or political parties. This government shutdown is a showdown between the public and the billionaires.”

“[They’re] using a shutdown as a threat to pressure Congress to pass a budget that impacts our most vulnerable, including seniors, rural communities, hungry children and cuts out access to healthcare for millions of Americans,” said FUN Co-Executive Director Alyssa Tafti in a statement. “Federal workers took an oath to serve the American people, and our veterans, our seniors, and our families deserve better than to have these important services and protections taken away from them,” she said.

Health care workers agreed. “It is completely reckless and morally bankrupt for Trump and Republican leaders to use a government shutdown as leverage to enact massive Medicaid cuts that will harm millions of Americans,” said Yvonne Armstrong, president of 1199 SEIU United Healthcare Workers East, which represents 450,000 public and private health care workers from Massachusetts to Florida.
SAVE OUR SERVICES

“A government shutdown is never Plan A. Federal workers and the communities we serve will face severe hardship,” the FUN letter to Democratic leaders said. “But federal workers will willingly forego paychecks in the hopes of preserving the programs we have devoted our lives to administering.

“In order to save our services today, we need to send a message to this Administration that enough is enough,” the letter concluded.

Democrats are demanding that Congress extend Affordable Care Act subsidies, which Republicans are allowing to expire. Health care costs for 22 million people will rise by an average of 75 percent. Millions would pay thousands more per year, and many will be priced out of health insurance.

Democrats are also trying to stop Trump from unilaterally canceling federal funding, and to restore cuts to Medicaid that are projected to immediately close 300 rural hospitals. But Republicans have refused. By law, Congress controls funding, but the law is not being enforced.

The Republicans passed Trump’s “One Big Beautiful Bill” in July to give the rich more tax breaks. It cut $1 trillion from Medicaid, which many hospitals depend on.

“Trump’s and the Republicans’ track record show they have zero interest in maintaining a government to serve its people,” wrote National Nurses United. “The [Democrats’ proposed bill] would not only restart the government, but also save lives by restoring health care funding and assistance, while ending the Trump administration’s unprecedented power over government spending.” NNU has 225,000 members across the country.

During past government shutdowns, non-essential workers have been furloughed, while essential workers were expected to show up without pay. They eventually received back-pay. This time, however, Trump’s budget director, Russell Vought, has threatened to lay off workers permanently instead. Unions have filed suit in California, charging that he does not have that authority.
HORROR SHOW

Federal workers have been put in this paradoxical position because Trump administration actions since February have already shut down vital government services and safeguards, with no end in sight.

Government workers have experienced eight months of horror, with mass layoffs of probationary employees, data theft by DOGE, and orders that have prevented them from doing their jobs.

At Housing and Urban Development, fair housing lawyers were prohibited from contacting their clients. At the National Institute for Occupational Safety and Health, 90 percent of staff were laid off. At NASA, perfectly good weather satellites were ordered abandoned because they record carbon in the atmosphere. EPA workers charge that administrators are “directly contradicting EPA’s own scientific assessments on human health risks, most notably regarding asbestos, mercury, and greenhouse gases.”

Over 200,000 federal workers have been axed and by December, 300,000 federal workers (one in eight) are expected to be gone.

“Congress must draw the line,” said James Kirwan, a FUN organizer. “Public service and public programs are not bargaining chips in a billionaire power grab.”
BENT ON DESTRUCTION

New Trump-appointed administrators seem bent on the destruction of their agencies. Trump even fired a FEMA head after he told Congress he wasn’t in favor of eliminating the agency entirely.

In the worst union-busting in memory, the administration has claimed that union contracts for most federal workers are void and stopped agencies from collecting union dues. Administrators in many agencies are ignoring contracts and acting like their unions don’t exist.

Lawsuits by the American Federation of Government Employees and the National Treasury Employees Union have had mixed results, but the courts have mostly declined to stop the administration’s actions.

Public protest and the unworkability of the cuts have meant that at a few agencies, notably Veterans Affairs, the IRS, and the General Services Administration, managers have backed off from the more extreme projected reductions in force.

At many agencies, including the VA, FEMA, EPA, and NASA, workers have signed public declarations sounding the alarm that their work was being undermined. Congress, which is controlled by Republicans, has taken no action, however.

“The Continuing Resolution we are currently operating under has given President Trump extraordinary powers over government spending, which he has used to slash public services,” FUN wrote. “As a result, the American people are already experiencing unprecedented harms.”

Addressing the Democrats, FUN wrote: “We ask that you refuse to support any budget that does not rightfully return the power of the purse to Congress and ensure any and all appropriated funds are spent on our critical public services.”

The Federal Unionists Network is holding a call on October 2 called “Federal Worker Showdown: Now is the Time to Fight.” You can sign up at the link.

Jenny Brown is an assistant editor at Labor Notes.

Thoughts From the Shutdown

Dean Baker

 October 3, 2025

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As we go through Trump Shutdown IV, I had a few thoughts to share.

Montana Senator Steve Daines – Truth Telling Republican

At a time when Vice President Vance is running around saying that the shutdown is because Democrats want to give free health care to “illegals” and Trump is saying that the Democrats want “trans for everyone” (whatever the hell that is supposed to mean), it is refreshing to see a Republican Senator being honest about the key issue.

Senator Daines said that the Democrats want to keep the expanded Obamacare subsidies in place, keeping premiums from soaring for 15 million people, and he is opposed to continuing these subsidies. While I completely disagree with his position, at least Senator Daines was honest about what is at issue. There is no way forward unless we can talk seriously about the issues separating the parties. Unfortunately, Trump, Vance, and Speaker Johnson are instead determined to spew lies and nonsense.

Trump’s New MAGA Slogan is “America Fourth”

Trump’s ambassador to Israel, Mike Huckabee, recently explained that if he seemed to be working as much for Israel as for the United States, it’s because the two countries are like husband and wife. That makes America second.

But then we got pushed back to third when Treasury Secretary Scott Bessent decided to lend Argentina $20 billion to help get Argentina’s president and Trump friend Javier Milei get through elections this month. The loan is especially embarrassing from the “America First” perspective since Argentina has largely replaced US farmers as a source of soybean exports to China.

But America didn’t last long in third place in the Trump administration. Trump signed an executive order committing the United States to defend Qatar after an Israeli strike there last month. The commitment is similar to NATO’s Article 5 provision that an attack on one would be seen as an attack on all.

Those unhappy about seeing the interests of the United States fall to fourth place on the Trump agenda can take solace from the fact that a commitment from Donald Trump is pretty much worthless. Also, does anyone really think that we would go to war with Israel to defend Qatar?

Trump’s Shutdown Threats are Just Stupid

Trump is saying that he is cancelling spending in blue states and firing Democratic workers because of the shutdown. Trump doesn’t have legal authority to do either, even if the SCOTUS may allow it. As Chief Justice Roberts always says, “Ain’t no law with Donald Trump in the White House.”

Anyhow if Trump is allowed to cancel appropriations for states because they vote Democratic and fire government workers for the same reason, we should assume that he would do it anyhow. The shutdown might give him a convenient excuse, but so would the autumn equinox. Trump can always find some excuse to attack the people he perceives as his enemies. The shutdown is irrelevant, as anyone sharper than a political reporter for major media outlets can easily see.

It’s also clear that Trump wanted this shutdown. He prevented all negotiations through the summer and up until the very last day before the end of the fiscal year. That is not the behavior of someone interested in striking a deal.

ADP Jobs Report Was Bad Enough to Get the ADP CEO Fired

With the BLS jobs report for September being delayed by the shutdown, all of us data nerd types are turning to alternatives. The report published by the payroll processing company ADP is the next best available. This doesn’t track the monthly jobs report closely, but taken over a year, the two are generally reasonably close.

The September report showed a pretty bleak picture. The economy lost 32,000 private sector jobs. With the impact of Elon Musk’s deferred firings hitting in September, we likely lost at least 20,000 public sector jobs, for a total job loss of over 50,000. There were also downward revisions to the August data. The report also showed slowing wage growth, as have the recent BLS jobs report.

All in all, the report was bad enough that Donald Trump is probably looking to fire ADP’s CEO, like he did BLS Commissioner Erika McEntarfer after the bad July numbers were released. It looks like jobs are getting harder to find in Donald Trump’s America and the ones people do find are paying less.

There was one other very interesting aspect to the ADP report. The job losses all came from small and mid-size firms. The larger ones were doing fine.

Interestingly, this is the textbook story of what we would expect to see from a high tariff regime. The logic is that the big firms are well-connected. They can go to Mar-a-Lago and give Donald Trump big gold medals and get tariff relief. Small and mid-size firms don’t have the connections and the resources for these sorts of payoffs. For that reason, smaller and more dynamic firms are the ones that would be expected to suffer most in Donald Trump’s economy.

This is just one report, so it would be wrong to make too much of the story here. But it is worth noting. The stock market tells us that the larger firms are doing just fine, at least until the AI bubble collapses, but the story may not be as good lower down the corporate food chain.

This originally appeared on Dean Baker’s Beat the Press blog.

Dean Baker is the senior economist at the Center for Economic and Policy Research in Washington, DC. 

Private Equity and 401(k)s: Plan Administrators Still Not Ready to Dive In

Eileen Appelbaum

 October 3, 2025

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In our August 19 Expose the Heist piece, I raised questions about the willingness of 401(k) plan sponsors to rush into private equity (PE) in the wake of President Trump’s executive order (EO), Democratizing Access to Alternative Assets. New evidence bolsters the argument that the order may not do what it intends to do anytime soon.

Trump’s EO directed the Department of Labor and the Securities and Exchange Commission to open the $9 trillion in workers’ 401(k) accounts to the private equity industry, money that industry believes could bail out struggling private equity funds.  Access to workers’ nest eggs has long been the goal of the PE industry, and it has lobbied hard for this change. It is more important now than ever.

Private equity’s performance has been mediocre since the financial crisis and has deteriorated notably since mid-2022. The reason? PE funds failed to mark their portfolio companies to market when the S&P 500 fell 20 percent that year, saddling them with overvalued assets that have proved difficult to sell. At about the same time, the Federal Reserve raised interest rates from near zero to over 5 percent to fight the pandemic-related inflation. High interest rates have made it harder for the unsold portfolio companies to refinance their debts as they mature. The PE industry is looking to Trump’s EO to make workers’ retirement savings available to bail them out. This is a huge pool of capital that PE has had very little access to in the past.

But do the people who manage retirement plans want any part of it? Earlier this month, the Plan Sponsor Council of America (PSCA) put that question to its members, asking them if the president’s executive order had affected their thinking about adding private market investments to their retirement plans. Ninety members responded. The results, published September 19, indicate that the EO will likely disappoint the PE industry. In line with larger surveys, a little over 2 percent of poll respondents reported that they already offer plans that include private market investments. Just an additional 3 percent report they are considering it. Thirteen percent said they are unsure at this time, and 80 percent stated that they haven’t changed their minds and will not be offering private market investments in 401(k) and other employer-sponsored retirement savings plans.

There are plenty of reasons to explain their reticence. Private market investments typically carry high fees, and this could expose employers to being sued by their employees under the Employee Retirement Income Security Act (ERISA) for offering high-fee plans. While it was still below the 2020 peak for such cases, excessive fee cases brought against employers spiked in the second half of 2024.

Indeed, some respondents to the PSCA survey cited employers’ concerns about exposure to liability as fiduciaries if returns on these typically high fee investments fail to produce good returns. Comments included “We are not willing to take the fiduciary risk,” and “Introducing private market investments into our 401(k) plan would significantly increase the complexity of plan administration and potentially expose us to greater fiduciary liability.”

A second theme was the complexity of private market investments and the need for employee education. As one respondent put it, “We have enough offerings that confuse our employees already.”

The Department of Labor and the SEC have until February to respond to the President’s EO and provide reassurance to employers that their employees will not be able to sue them for offering plans that, in addition to their high fees, lack transparency, are illiquid and have limited opportunities for withdrawals, and – in the case of private equity investments – have underperformed the S&P 500 in recent years.

President Trump would like the DOL or SEC to take away workers’ right to sue their employer for investing their retirement savings in expensive and risky assets that do not belong in 401(k)s. In view of the guardrails ERISA provides to protect workers’ retirement savings, this will not be easy.

This first appeared on CEPR.