Monday, October 02, 2023

‘Looking Like a Bunch of Monkeys’: Black Employees Allegedly Forced to Relieve Themselves Outside While White Employees Used Bathrooms Indoors, EEOC Lawsuit Against Florida Asphalt Paving Company Claims

Niko Mann
Mon, October 2, 2023 

The U.S. Equal Employment Oppor­tunity Commission filed a lawsuit against Asphalt Paving Systems on Sept. 26, alleging the company created a hostile environment for Black employees in Zephyrhills, Florida.

The EEOC alleges that Asphalt Paving Systems violated Title VII of the Civil Rights Act of 1964 and 1991 by subjecting 12 Black now-former employees — Michael Cheaves, Anthony Clemons, David Cooper, Freddrick Cooper, Broderick Curney, Olusoga Davis, Kendall Gadson, Joseph Haynes, Alvin Matooram, Willie Moore III, David Whipper, and Jack Cornell Youmans to racial harassment in the workplace.

The U.S. Equal Employment Oppor­tunity Commission filed a lawsuit against Asphalt Paving Systems, citing racial harassment against Black employees. (Photo: asphaltpavingsystems.com screenshot)

The EEOC claim lays out a litany of allegations against APS, many of which are enumerated below.


According to the lawsuit, the employees were repeatedly called the “N-word” and “boy” by other employees and management. They were also subjected to demeaning working conditions, such as being forced to work in heavy rain while white employees watched. The Black employees were also forced to relieve themselves outside, while white employees were allowed to use the bathrooms indoors.

“Throughout the course of Charging Parties’ employment with APS, they were subjected to racial epithets and racially-charged verbal abuse from white supervisors and co-workers, threatening conduct by white supervisors and co-workers, and being forced to work in demeaning and humiliating working conditions,” the complaint says.

A white foreman named Anthony Buchholz was one of the supervisors who often used racial slurs to refer to Black employees, according to the EEOC.

“Buchholz would use the N-word frequently in front of Curney,” reads the lawsuit. “Curney objected to Buchholz’s use of the N-word directly, but Buchholz continued to use it. After Curney’s objections, Buchholz then came to a job site with a friend and yelled ‘I ain’t gonna ever run from a Black N—r’ at Curney.”

The lawsuit also noted that a foreman named Douglas Henry often called Black employees “boy” and that the company prevented a paving crew from finding other employment by calling a potential employer and telling them not to hire the men. The men were also called “Black boy,” “monkey,” and “Black motherf-cker” by Asphalt Paving System employees.

Supervisor Dennis Williams was overheard saying the Black paving crew “were looking like a bunch of monkeys,” and another employee, Mike Whitson, called Freddrick Cooper a monkey directly to his face “on a frequent basis.” Whitson also called the men “sissies” and “f—ggots” and referred to David Cooper as a “dumb N—r.”

The company’s mechanic, referred to in the lawsuit as “Jackie,” made comments to Black employees such as, “Black is beautiful, tan is grand, but white is the color of the big boss man” and that he was “Black from the waist down.”

By March 2022, every one of the Black employees had either resigned from APS or been fired.

EEOC Regional Attorney Robert E. Weisberg called the racial discrimination the employees faced “toxic.”

“The allegations in this case are deeply disturbing and illustrate the unfortunate reality that, 60 years after Title VII was enacted, toxic racial discrimination still plagues many workplaces in Florida,” said Weisberg. “The EEOC will continue to vigorously fight for the rights of Black employees and applicants to be free from workplace discrimination.”

The lawsuit asks Asphalt Paving Systems to “institute and carry out” policies, practices, and programs that provide Black employees with equal employment opportunities that “eradicate” their unlawful employment practices as well as provide the plaintiffs with compensation “in amounts to be determined at trial.”

The lawsuit also requests the plaintiffs be compensated for “the unlawful employment practices described herein, including emotional pain, suffering, inconvenience, loss of enjoyment of life, and humiliation,” as well as their legal costs.

‘Shameful’: Black Tesla Employee Claims White Co-Workers, Supervisor’s ‘Preferred Pronoun’ to Use Was the N-word In Startling Federal Racial Harassment Lawsuit

Yasmeen Freightman
Mon, October 2, 2023 at 7:00 AM MDT·3 min read


A new and damning civil rights lawsuit filed by the U.S. Equal Employment Opportunity Commission alleges that automotive giant Tesla did nothing to stop widespread racial harassment aimed at Black employees working at a California plant.

The EEOC states that some Black workers at a plant in Fremont, California, were often called racial slurs, including variations of the N-word, and even witnessed graffiti depicting nooses, swastikas and more racist images drawn across the facility’s high-traffic work areas and even on production lines.

Former Black workers said they were routinely called the N-word by fellow workers. (Image courtesy of AP Photos).

The plant’s supervisors and managers were also witnesses to this conduct but refused to intervene, the suit obtained by Atlanta Black Star details. To make matters worse, human resources employees and managerial personnel who were approached by workers about the “slurs, insults, graffiti, and misconduct” made no effort to address the behavior or penalize the workers responsible. Some of these employees were even terminated, transferred, or experienced a shift in their job duties for reporting the conduct.

The suit accuses the electric carmaker of violating “federal law by tolerating widespread and ongoing racial harassment of its Black employees and by subjecting some of these workers to retaliation for opposing the harassment.”

Tesla has yet to respond to requests for comment from several major outlets nor has the company released a statement on the lawsuit at this time.

This suit is just the latest in a series of civil actions taken against Musk companies over the past few years.

The Justice Department sued SpaceX for allegedly discriminating against refugees and asylum seekers in its hiring process. In 2021, the carmaker was also the target of a lawsuit filed by half a dozen women who alleged the company fostered an environment of sexual harassment. Just this year, a jury ordered Tesla to pay Owen Diaz — a Black former employee — nearly $3.2 million in damages after finding he faced racial discrimination on the job in 2015. Diaz was initially granted $137 million in 2021, but a judge tossed out that award, ruling it as excessive.

Diaz worked as an elevator operator at the Fremont facility and he sued his former employer after regularly hearing racial slurs on the factory floor and seeing racist graffiti in bathrooms.

The EEOC’s lawsuit details staggering similarities to Diaz’s case, alleging that since 2015, Black workers at the Fremont plant “have routinely endured racial abuse, pervasive stereotyping, and hostility as well as epithets such as variations of the N-word, ‘monkey,’ ‘boy,’ and ‘black b—-.’”

Managers, supervisors, line leads, and production associates engaged in this conduct, according to the legal complaint. One employee even reported that white co-workers and one supervisor’s “preferred pronoun” was the N-word.

“Every employee deserves to have their civil rights respected, and no worker should endure the kind of çracial bigotry our investigation revealed,” EEOC Chair Charlotte Burrows said. “Today’s lawsuit makes clear that no company is above the law, and the EEOC will vigorously enforce federal civil rights protections to help ensure American workplaces are free from unlawful harassment and retaliation.”

The EEOC is seeking “compensatory and punitive damages, and back pay for the affected workers, as well as injunctive relief designed to reform Tesla’s employment practices to prevent such discrimination in the future.”

Stellantis' last-minute bargaining move with the UAW saved Michigan jobs — for now


Jamie L. LaReau, Detroit Free Press
Sun, October 1, 2023

The United Auto Workers' latest escalation in its strike against General Motors and Ford Motor Co. has auto parts suppliers in Michigan relieved, for now.

For one thing, UAW President Shawn Fain stopped short of cutting the automakers off at the knees. It chose to strike midsize SUV plants at the two companies rather than target the plants where GM and Ford make their most profitable and highest-volume selling vehicles: pickups and large SUVs. So the damage remains relatively contained.

And, in a last-minute maneuver by Stellantis, the automaker saved itself from further strike action when it offered to reinstate a cost of living adjustment and meet some other union demands minutes before Fain's Friday 10 a.m. deadline. It is a move that industry observers say likely saved thousands of ancillary parts supplier jobs in the state.

UAW president Shawn Fain talks with the news media after his speech from the bed of a Ford F-150 to striking workers many of whom caravanned in Ford Broncos and Jeeps to hear him at the UAW Solidarity House on Jefferson Avenue in Detroit on Friday, Sept. 29, 2023.

"It would have been an interesting fallout in Michigan had he taken the Stellantis JNAP (Jefferson North Assembly Plant) in Detroit down, with the two other SUV plants going out,” said Laure Harbour, CEO of Harbour Results Inc.
'Good thing Stellantis came to the table'

Instead, Fain ordered some total 7,000 UAW members who work at Ford's Chicago Assembly — where Ford makes the Explorer and Lincoln Aviator SUVs — and workers at GM's Lansing Delta Township assembly — where GM makes the Buick Enclave and Chevrolet Traverse SUVs — to walk off the job at noon Friday. The strike action did not include GM Lansing Regional Stamping plant or Ford's Chicago Stamping Plant.

Members of the United Auto Workers union walk out of the Chicago Ford Assembly Plant as Lance Williams from Lansing, Ill., waves the UAW flag on Friday, Sept. 29, 2023,

Stellantis builds its Jeep Grand Cherokee and Dodge Durango SUVs at JNAP. In the second quarter, sales of the Grand Cherokee rose 19% compared with the year-ago period.

“I thought, ‘Good thing Stellantis came to the table’ because that’s their moneymaker," Harbour said. "If he had hit JNAP, it would have hurt Sterling Stamping Plant and a host of other plants.”

Pat Green sighed in relief at the news Stellantis would be skipped over, too. Green is CEO of Cascade Die Casting Group, which makes aluminum and zinc die casting for the automotive and appliance industries.

"We have content on the Jeep Grand Cherokee and content on the Ram pickup," Green said. "So far, the full-size pickups have been spared. Every time I hear one of these announcements, that’s my concern that we’ll hit the full-size pickup each week."

It means each week, Green has had to quickly assess the impact of the latest strike target on his business, react to it and communicate with his 450 employees across two plants in Grand Rapids.

Striking workers, many of whom caravanned in Ford Broncos and Jeeps, listen to UAW President Shawn Fain talk with them at the UAW Solidarity House on Jefferson Avenue in Detroit on Friday, Sept. 29, 2023.

"So far, we’re better than most, but it’s a real challenge," Green said. "We're managing by reducing overtime so everybody is still working. If this continues, we will have to have some volunteers take time off."


But, he said, come Oct. 1, as another hunting season starts in Michigan, he figures he’ll get volunteers.
'Deadline behavior'

The Stellantis last-minute intervention was also significant because it falls in with the logic of collective bargaining, said Harley Shaiken, professor emeritus at the University of California-Berkeley.

“All of a sudden the people at Stellantis said, ‘Wait a minute, what’s it going to cost to have more plants out several weeks versus sweetening the pot now?’ They did the math and that problem was solved. This indicates, not that we’re on the verge of a settlement, but that one is possible."

Stellantis, maker of Chrysler, Dodge, Jeep, Ram and Fiat brands, said it "has been intensely working with the UAW to find solutions to the issues that are of most concern to our employees while ensuring the company can remain competitive given the market’s fierce competition. We have made progress in our discussions, but gaps remain. We are committed to continue working through these issues in an expeditious manner to reach a fair and responsible agreement that gets everyone back to work as soon as possible."

Standing in the bed of a Ford F-150, UAW president Shawn Fain speaks to the crowd of strikers at the parking lot of the UAW Solidarity House on Jefferson Avenue in Detroit on Friday, Sept. 29, 2023, during a rally.

The UAW's latest move means that there are now a total of about 25,000 UAW members on strike across the nation. Fain first declared a strike as contract talks failed before the current contract expired at 11:59 p.m. Sept. 14. Fain announced the first wave of plants to strike: Ford Michigan Assembly Plant (Final Assembly and Paint only) in Wayne, Stellantis Toledo Assembly Complex in Ohio and GM's Wentzville Assembly in Missouri.

Then, last week on Sept. 22, Fain ordered union members who work at 38 parts distribution centers cross the nation belonging to GM and Stellantis to go on strike. Those facilities provide parts to dealerships to do repairs on customers' cars. Ford was spared that time because it had made "significant" bargaining progress by agreeing to reinstate cost of living adjustments (COLA), eliminate some wage tiers, give the union a right to strike over any plant closures and more.

Fain was about a half hour late in what was to be a Facebook Live presentation to members Friday. The delay turned out to be due to Stellantis making its last-minute offer.


Art Wheaton, director of Labor Studies at Cornell University in Ithaca, New York.

"It’s called deadline behavior," said Art Wheaton, director of Labor Studies at Cornell University. "A lot of times in bargaining the best contracts don’t come until the deadline's about to expire. In this case, it shows they were still bargaining right up to the last minute. It was not preordained. They were still working on it."

Wheaton said he was relieved to see Stellantis make movement because he was concerned that it was the automaker making the least progress in the negotiations with the UAW. He said given that Ford made progress the week before and was exempted from strike action on Sept. 22 and now with Stellantis doing the same this Friday, he sees a pattern that shows Fain's strategy of setting these deadlines as moving the needle.

"My crystal ball says that you will hear more on Friday next week and I think both Ford and General Motors will say, 'We’re all getting close in our three offers, maybe we should give a better offer?’ " Wheaton said. "I don’t think you’ll hear more before Friday.”

Fain listed the issues in which Stellantis has made "significant progress" as reinstating the 2009 COLA formula, allowing the right not to cross a picket line, the right to strike over product commitments and plant closures and agreeing to some outsourcing moratoriums.
Fain has 'considerable room to ramp up'

"Deadlines produce action," said Marick Masters, a labor expert and business professor at Wayne State University. "It’s noteworthy that he backed off including Stellantis in this strike wave and he’s encouraged the automakers to compete against each other.”

There is also room to ratchet things up. At Ford, the facilities the union is striking have accounted for 18% of the automaker's total North American production in the past eight months, Masters said. For GM, the facilities the union has taken down, including the Fairfax Assembly plant in Kansas, which GM had to idle due to the strike at Wentzville, Missouri, has made up 23% of GM’s production in the past eight months.

Aerial view of a car distribution center in Jessup, Maryland which, due to the United Auto Workers strike, has seen delayed to no shipments of new cars to various dealerships on the East Coast on Sept. 28, 2023.

“That’s another way of saying the UAW has considerable room to ramp up the strike activity in incremental phases if they want to nudge the parties further along toward an agreement," Masters said.

Shaiken added that it was a surprise that the union did not get a tentative agreement with Ford this past week given the UAW spared Ford's parts distribution centers from strike action last week. But the Stellantis progress indicates that negotiations are continuing and taking out the two SUV plants, is not "a huge infliction of pain. It was a costly move to the companies, but it was meant to speed the negotiations and not go back to square one.”
Another month and the fallout is fierce

But Masters warned if the strike lasts another month and broadens, the fallout will be fierce.

"You will see suppliers will be increasingly affected and more layoffs," Masters said. He said he has counted about 6,000 layoffs at suppliers, including those at GM's Fairfax, along with some associated with Ford's Wayne Assembly.


GM Lansing Delta Township UAW members, including Ryan Kosloski, right, picket, Friday, Sept. 29, 2023, near Millett Highway and Creyts Road. Koloski's shirt shows the four in his family who also work at GM.

“I think that will progress, as dealers are unable to service cars, they may be forced to lay off people due to lost revenues," Masters said, referring to the parts distribution facilities currently shut down. "You’ll see an increasing ripple effect.”

Also, the longer the UAW goes without an agreement with an automaker, the pressure will grow in the rank and file, Masters said. He noted some already feel guilt that they have income while their union colleagues on the picket line are living on $500-a-week strike pay.

"That frustration will grow over time," Masters said. "Workers will start pressuring Shawn Fain."

UAW Local 602 members picket Friday, Sept. 29, 2023, near Millett Highway and Creyts Road in Delta Township.

It has already happened to some extent as one UAW member at Lansing Delta Township Assembly told the Free Press that the week-to-week unknown of which facility will strike next is a real nail-biter among workers. The person is not being named to protect their job security.

"It’s great that (Fain's) using social media, but people are still saying he didn’t give a timeline or when the next update will be," this union member said. "So it is just a whole different strategy. It makes people uneasy."

More: ‘Let me be blunt’: UAW VP for GM has strong words about Trump’s visit to Michigan

More: UAW workers walk off the job in Lansing while supporters come out for a rally in Detroit

Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter. Become a subscriber.

This article originally appeared on Detroit Free Press: Stellantis COLA offer to UAW saved itself from more strike action
US expands, upgrades probe into 708,000 Ford SUVs, trucks over engine failures


David Shepardson
Mon, October 2, 2023

The New York International Auto Show, in Manhattan, New York City

WASHINGTON (Reuters) -The National Highway Traffic Safety Administration (NHTSA) said on Monday it was upgrading and expanding its investigation into 708,000 Ford Motor sport utility vehicles and trucks over catastrophic engine failures tied to a faulty valve.

The agency says under normal driving conditions vehicles without warning may experience a loss of power due to catastrophic engine failure related to a potentially faulty valve in 2.7 L and 3.0 L EcoBoost engines.

The investigation covers 2021 and 2022 model year Ford Bronco, Edge, Explorer, and F-150 and Lincoln Aviator and Nautilus vehicles.

NHTSA began a preliminary evaluation in July 2022 into 25,000 vehicles after opening a defect petition review in May following a request from some owners, and is now upgrading the probe to an engineering analysis, a required step before it could seek a recall.

A Ford spokeswoman said the automaker was working with NHTSA to support their investigation.

NHTSA said it had reports of 328 customer complaints and 487 warranty claims relating to the vehicles under investigation.

It said analysis of data submitted by Ford "revealed that the alleged defect is present across the 'Nano' engine family, which includes both the 2.7L and 3.0L EcoBoost engine variants."

Ford told NHTSA the defective valves were manufactured out of an alloy known as "Silchrome Lite" that can become "excessively hard and brittle if an over-temperature condition occurs during machining of the component."

Ford said a design change in October 2021 changed the intake valve material to a different alloy. Ford added it believed "defective intake valves commonly fail early in a vehicle’s life and has suggested that the majority of failures have already occurred."

(Reporting by David Shepardson, editing by Ed Osmond and Bernadette Baum)
Austin company tapped by NASA to build 3D printed houses on the moon by 2040

Chris Morris
Mon, October 2, 2023 

Courtesy of ICON

NASA’s not stopping with sending people back to the moon. It wants to give them the opportunity to live there as well.

The space agency plans to build houses on the moon by 2040, according to a report in the New York Times that interviewed several NASA scientists about the work already underway. “We’re at a pivotal moment, and in some ways it feels like a dream sequence,” Niki Werkheiser, NASA’s director of technology maturation, told the Times. “In other ways, it feels like it was inevitable that we would get here.”

A subdivision on Mars is being discussed as well.

The lunar plan is called Project Olympus. And while it’s an ambitious goal, the scientists the Times spoke with said it’s currently on track.

Austin-based ICON has partnered with NASA for the project. That company uses a 3D printer to create homes out of concrete here on earth, having built over 400 in its home city to help the homeless as well as hurricane-resistant houses for the poor in rural Mexico. The company has been working with NASA since 2020, and in 2022 received $57 million to build construction systems that used Lunar and Martian resources as building materials.

The company plans to use the dust, rocks, and mineral fragments in the moon’s surface to create the concrete-like substance that will make up the homes and other buildings. Using lunar materials, it’s theorized, would make the structures less vulnerable to the sharp, toxic dust that swirls on the planet’s surface.

The challenge is less one of materials as it is of physics, though. ICON’s printer will be tested in NASA’s Marshall Space Flight Center next February to see how it handles the vacuum conditions and radiation levels of space. Even if they do well, they won’t be able to go to the moon until a landing pad is constructed there.

Beyond the houses themselves, NASA is working with universities and private companies on other household items, ranging from doors to tiles to furniture. No word yet on how (or if) they plan to handle atmosphere.

Before any of that, NASA has to successfully send astronauts back to the moon. If all goes according to plan, the Artemis 2 mission will send astronauts into lunar orbit in 2024. In either 2025 or 2026, the Artemis 3 mission will land on the lunar South Pole, with the assistance of SpaceX’s Starship, returning humans to the surface.

This story was originally featured on Fortune.com
Michigan's 1st 3D printed home is in Detroit — and almost complete

Nushrat Rahman, Detroit Free Press
Mon, October 2, 2023 

A house that is billed to be Michigan's first 3D-printed home is nearly complete.

The two-bedroom, one-bath home, with its green stucco exterior, sits in Detroit's Islandview neighborhood. Citizen Robotics, the nonprofit behind the 1,000-square-foot single-family home, aims to wrap up construction by the end of the year and welcome a homeowner soon after. It has been in the works for about three years, and printing started last October. There are dozens of similar projects across the country, including a 100-home development in Texas.

The industry in the U.S. is new, but proponents say using 3D printing for building homes is the future of construction. The method, builders say, is less expensive at scale and can reduce energy costs in the long run for homeowners.


"It's about having a better process for how we build our homes," said Evelyn Woodman, co-founder and communications director of Citizen Robotics.

Here's what to know about Detroit's first 3D-printed home and the budding industry:
How 3D printing a home actually works

A refurbished robot from the auto industry, likely once used for welding, created the exterior walls, two curved walls inside the home and portions of the front porch in Citizen Robotics' facility in southwest Detroit. Don't picture a giant printer spitting out walls. Instead, a robotic arm extruded layer after layer of what's called "cementitious 3D printable mortar" to create the pieces. The mortar blocks were then brought over to Islandview to build out the home.

"The future is now," said Bryan Cook, of Detroit-based Develop Architecture, who is the architect of the home. "Everything else about what I do is already digital. It's already 3D. I design in 3D. I create the drawings in 3D. I have an interior rendering of the home in 3D. So, now we're just taking that and actually just printing it."



Cook said people have printed with concrete, mortar, plastics, metal and even mushrooms (specifically mycelium). The industry is flexible and ripe for innovation.

The process typically involves printing out the walls or roof of a home using a concrete-based material, said Zachary Mannheimer, founder and chairman of Alquist 3D, which has built homes in Virginia and Iowa, and partnered on projects in Florida, Texas and Winnipeg, Canada.

The end result of a 3D-printed wall is similar to the more traditional method of pouring concreate into a form, but 3D printing requires fewer people, less time and is less expensive, he said.

"We can typically do it quicker than a normal concrete or stick built-home would be," Mannheimer said. "We can do it with less labor. We can do it with less expensive material, and the material that we're using tends to be more sustainable. It's stronger than traditional concrete by at least two or three times, which means it can stand up to most major storms. It doesn't burn."


Citizen Robotics sees 3D printing as a "lever for change," Woodman said. The method replaces the exterior framing of a home, which is one of many steps, she said. The nonprofit is thinking of ways to make the entire homebuilding process — from working with construction trades and the city — more efficient.

"There are so many robots sitting in warehouses right now not doing a single thing. ... Why can't those robots be helping to build more homes for Detroiters," said Fernando Bales, build lab manager for Citizen Robotics.

It's a pilot, but builders tout some benefits

One of the main advantages of 3D printing is long-term affordability, Woodman said. The homeowner would save on energy bills each month and likely need fewer repairs. Citizen Robotics estimates heating and cooling costs for the home will be about $30 a month, compared with $150 in a traditionally built home, she said.



"If you're printing one home, and you compare it to a stick-built home, in many cases, that cost is going to be comparable," Mannheimer said. "When you're doing it at scale, meaning 10 or more at one time, that's when we're seeing more significant savings of anywhere from 5 to 20%, depending on the scale of the project. What we're predicting is over the next two to three years, we're going to see those costs drop dramatically."

The biggest benefit, he said, is going to be workforce development. The industry will create thousands of jobs for people globally who don't want to get a four-year degree, Mannheimer predicted.

Citizen Robotics also sees the workforce advantage. The nonprofit is interested in helping to solve the labor shortage and teach people how to build with robots.
3D-printed home price tag: $224,500

Construction of the house is expected to cost $265,000. That's on par, if not a bit more expensive, than building a conventionally framed home because it's one home and not multiple projects that take advantage of scale, according to Citizen Robotics. The organization spent $80,000 on site preparation, city water and sewer and repairing the street, Woodman said. The home is expected to be sold for $224,500. It is capped at that price.



That's about four times higher than the median sale price of a home in Detroit — $55,000 — according to a Free Press analysis of 1,000 deed records. The average price, the analysis found, was $82,000.

The value of most home sales was under $100,000, according to a Detroit Future City report. Median sale prices have gone up in Detroit. Researchers found that from 2020 to 2021, the median sales price was $30,000, compared with $15,000 from 2012 to 2013.

More: Delay, decay, repeat. How Develop Detroit's Hive project turned into a rat's nest

More: Oakland County Sheriff Michael Bouchard warns against burglary gangs from 'south of the border'

The development process is what makes building difficult, Cook said. It's not affordable right now to build one-off 3D printed homes, he said.

"We can make and design a bunch of homes," he said. "That's not the issue. It's finding the land, making it affordable for people, making it available to people and being able to continue to do the work."

The Michigan State Housing Development Authority (MSHDA), which is funding the project, requires the home to be sold to a buyer at 80% of the area median income (AMI). That translates to a family of three making $68,240. AMI is regional measurement set by the federal government.

MSHDA provided a $143,000 grant and $130,000 construction loan for the project. The authority will evaluate the results of the pilot and "continue to explore innovative opportunities to address the statewide housing shortage," MSHDA Communications Director Katie Bach said in an email. MSHDA does not foresee funding more 3D-printed home projects at this time.


The Detroit project is believed to be the first 3D-printed single-family home in Detroit and Michigan, according to MSHDA.

What's going on across the country?

There are nearly 100 3D-printed homes across the country, Mannheimer estimated. He expects the numbers to increase every year. His company has completed four homes with families either living in them or slated to move in, and is in the process of completing several houses in Iowa.

"The housing industry has not changed the way we built a house in over 100 years. It's due for advancement. So 3D creates a home that's more sustainable, that uses less carbon and is more environmentally friendly," Mannheimer said. Traditional builds face three major problems, he said: the rising cost of materials, labor shortages and increasing natural disasters.


In 2021, Habitat for Humanity, in partnership with Alquist 3D, completed the nonprofit's first 3D printed home in Virginia and a family has moved in.

"We're only five years into the industry and we're already matching costs," Mannheimer said. "Two years from now, these homes are going to be significantly less expensive."
When will the home be available?

Citizen Robotics aims to finish the home by the end of the year, Bales said. The nonprofit expected to build the home in six to nine months, but faced delays as it sought to get permits and fulfill city requirements. Citizen Robotics printed the wall in five days but other parts of the process took longer.



"From applying for permits, acquiring those permits, excavating the site, not to mention removing all the refuse that was on this site, pouring the foundation, waiting for concrete — there was a concrete shortage at the time — so we were waiting, waiting, waiting for concrete to show up. All of that slowed the process back down," Bales said.

Still, Citizen Robotics wants to build more 3D-printed homes in Detroit and other cities across the state.

"I don't think it's a fad that more and more construction people are adopting tech, especially younger people," Bales said.

Contact Nushrat: nrahman@freepress.com
Follow her on Twitter: @NushratR





















Detroit casino workers vote to authorize strike, if necessary

JC Reindl, Detroit Free Press
Mon, October 2, 2023 

Detroit casino workers have voted to authorize a potential strike, if necessary, for when their labor contracts expire later this month.

The Detroit Casino Council said 99% of voting casino workers at MGM Grand Detroit, MotorCity and Hollywood Casino at Greektown were in favor of a potential strike. The voting took place Friday.



Workers' current contracts expire in mid-October, and negotiations with the casinos have been under way since September.

The casino workers' vote comes at a time when more than 25,000 UAW members are on strike in Michigan and other states across the nation, as well as another 1,000-plus UAW members employed with Blue Cross Blue Shield of Michigan.

The Detroit Casino Council is composed of five unions representing workers at the three casinos: UNITE HERE Local 24, UAW, Teamsters Local 1038, Operating Engineers Local 324, and the Michigan Regional Council of Carpenters.

The workers are under a three-year extension to a five-year contract that started in 2015. The casino council said they agreed to minimal wage increases back in 2020 for the three-year extension to help the casinos during the COVID-19 pandemic and shutdowns.

"Following the end of COVID restrictions and the legalization of online gaming, industry gaming revenues have now surpassed pre-pandemic levels to a new record high, but Detroit’s casino workers are getting left behind," the casino council said in a news release.
Corporate subsidy spending spree creates discomfort for some Michigan Democrats

Clara Hendrickson, Detroit Free Press
Mon, October 2, 2023 

There's a number Michigan Democrats may not shout out when they hit the campaign trail in their quest to preserve their newfound legislative power: $4.1 billion.

That's the total spending on business subsidies they've approved so far this year, according to an analysis from the Mackinac Center for Public Policy, a self-described "free market" research organization. Many of those dollars were diverted to a state fund that has helped automakers transition to electric vehicle production.

For some, the money fits uncomfortably in Democrats' legacy in Michigan where the party holds a slim majority and has a chance to pursue policy ideas after 40 years relegated to the minority. Scrutiny of the spending has also made its way to the negotiating table. UAW President Shawn Fain has said that if the public helps foot the bill for auto companies transitioning to electric vehicles, workers should also benefit. "As it stands right now, the workers are being left behind," he said on CBS last month.


While some Democratic lawmakers have touted the spending, it puzzles others who see it as hard to square with the party's rhetoric of putting people over profits. The funds haven't flowed without controversy. It's spurred infighting among Michigan Democrats, according to a person familiar with internal discussions who didn't want to speak on the record due to the contentious nature of the conversations. Even as they approved large sums for corporations, some Democratic lawmakers vowed to re-evaluate the state's economic development approach.

"I don't think anyone would have guessed that money for Ford or whatever would have been the first thing that they tried to do," said former Democratic staffer MoReno Taylor II, now executive director for Fund MI Future, a coalition focused on securing funding for public services from roads to schools.


Private investments backed by public dollars are just one part of Democrats' economic agenda, House Speaker Joe Tate, D-Detroit, emphasized in an interview with the Free Press. Democrats have also delivered economic relief for Michiganders such as with a tax cut for retirees and low-income earners. Tate defended the big spending on corporate subsidies as key to maintaining Michigan's competitive edge in a changing auto industry and supporting Democrats' climate goals.

Gov. Gretchen Whitmer has championed electric vehicle plants in Michigan backed by state funds, a key pillar of her economic agenda. Michigan's economic development officials note that companies must follow through on their investment promises and create new jobs in order to receive any state funds. But to land those jobs, the state needs to move quickly, Whitmer has repeatedly said. She joins economic development officials and corporate executives to announce deals before lawmakers have a chance to vet or approve the state funds to support them.

While some Democratic lawmakers want to change this process, one freshman lawmaker wants Democrats to abandon their support for such deals wholesale. "I personally feel like it is a betrayal of the working class. I think it's a big mistake," said state Rep. Dylan Wegela, D-Garden City, of corporate subsidy spending approved by Democratic lawmakers this year. "We're not supposed to be the party that believes in trickle down economics."

A record for the decade, conflicting views


The last time lawmakers reached this session's level of business subsidy spending was in the 2007-2008 session when control of the Legislature was split and Democratic Gov. Jennifer Granholm was signing bills.

While Democrats have touted their investments in families, business subsidies approved so far this year amount to more than 25 times the amount lawmakers approved to fund free school meals for all public school children in the state, and it's almost twice as large as the higher education budget for public universities.

Democrats disagree on the scale and necessity of the spending.

State Rep. Angela Witwer, D-Delta Township, has celebrated the spending as a boon for state's economy. "Until there is a national call to stop doing this, why would we stop competing?" she said in a podcast interview with MIRS in May. Witwer did not respond to a request from the Free Press for an interview.

Other Democratic lawmakers have expressed tepid support for the spending while harboring questions about its return on investment and expressing reluctance to commit more funds.

"I've been okay with what we've spent so far but have had some concerns about the volume and would be hesitant to support future investments in this one priority," said state Rep. Jason Morgan, D-Ann Arbor.



Some see an opening for what they call a long overdue need to reevaluate Michigan’s willingness to hand over taxpayer dollars to large companies.

One deal in particular has raised eyebrows: a Ford battery plant set to receive about $1.8 billion in subsidies put on hold amid the UAW strike.

"The people of Michigan and our elected officials have done so much for this corporation over the course of their time," Taylor said before Ford's construction pause. "The fact that we have to beg and f***ing bribe them to just do business here and do business in a good way, it's f***ing insane. It's really sad." Taylor said it's time to reevaluate Michigan's approach to economic development.

Some Democrats say they're doing just that. While business subsidies mark a key part of their economic agenda since taking power, it’s also prompted a Democratic-led effort to scrutinize the state's approach to spur job creation by giving cash directly to companies.
Where Michigan's corporate subsidy dollars went

James Hohman, the director of fiscal policy for the Mackinac Center, doubts that the spending will create new jobs and suggested lawmakers should share his misgivings. "Our lawmakers should be a lot more skeptical of their ability to influence the state economies by writing big checks to big companies," he said.

Among this year's big-ticket business subsidies signed into law included in the Mackinac Center's analysis:

More than $1.8 billion for the Strategic Outreach and Attraction Reserve fund, which provides grants to companies that create new jobs and subsidizes their site preparation;


$800 million to lift the cap on the brownfield program, which reimburses costs associated with redeveloping contaminated, blighted or historic properties. It was part of a Democratic-led bill package that obtained bipartisan support to expand the brownfield program with the intent of increasing the supply of affordable housing;


$629.7 million for site readiness as well as road and infrastructure improvements at a Ford electric vehicle battery plant near Marshall;


$400 million for revitalization and placemaking grants which can be used for business subsidies, although some grants have gone to cities and non-profit groups in the past;


More than $286.8 million for the Make It In Michigan Fund to leverage federal funding opportunities, including in economic development;


$200 million to retain jobs at a paper mill near Escanaba;


$100 million in business attraction and community revitalization funds.

Just last session, bipartisan fanfare accompanied announcements for major economic development projects receiving state support. But now in the legislative minority, Republican leaders this session have railed against the spending.

"I'm not a crony capitalist," Senate Minority Leader Aric Nesbitt, R-Porter Township, said earlier this year when asked to explain his opposition to the spending.
Corporate subsidies attached to Whitmer tax promise

Committing taxpayer dollars to business subsidies became a key part of Whitmer's long-promised tax overhaul.

When Gov. Rick Snyder, a Republican, overhauled Michigan's tax system, Democrats − including Whitmer − railed against it as a business tax cut paid for on the backs of retirees and low-income workers. During Whitmer's first run for governor, she campaigned on reversing Republican tax hikes for seniors in Michigan and increasing a tax credit for working families.


Whitmer's first budget proposed restoring tax breaks for retirees by creating a new business tax for pass-through entities. Repeated attempts to repeal Snyder's so-called retirement tax went nowhere under GOP control.

New Democratic majorities in Lansing finally gave Whitmer her opening to make good on her campaign promise. But she didn't resurface her earlier proposal to expand the corporate income tax to more businesses in the state, citing the state's strong financial position at the start of this yea

Instead of touching the corporate income tax, the legislation she signed diverted up to $1.5 billion to subsidize companies looking to grow their business in Michigan.

Wegela was the lone Democratic lawmaker to vote against the legislation because of the business subsidy spending. The tax legislation was among the votes that caused a stir within the Democratic caucus, one source said.

While Wegela was the only Democrat to speak out against the spending at the time, behind closed doors, other Democrats expressed their displeasure over attaching the corporate subsidies to the tax overhaul.

A person familiar with the discussions described them as incredibly fraught. "I mean starting the year off with this, not ideal," the source said. "I mean it got really hot." In addition to the tax overhaul, votes on funding for the Ford electric vehicle battery plant near Marshall also prompted tough conversations within the caucus. "Those two were not pretty," the source said.



An opportunity cost in corporate subsidies?

In the spending, some see the opportunity cost that comes with decisions to spend taxpayers’ dollars on business subsidies versus any number of public needs.

State Rep. Joey Andrews, D-St. Joseph, said it's hard not to look at the money lawmakers approved for business attraction projects and not see funding for mental health and roads.

"I mean even with the size that the budget was, there was stuff that got left on the cutting room floor," he said. "There's certainly things that I think a lot of us wish we could have done more on."



Morgan – another a freshman Democratic lawmaker – said there are multi-billion dollar needs in housing, infrastructure and education that lawmakers should prioritize moving forward.

Michigan entered the year with an estimated $9 billion surplus largely driven by a one-time influx of federal dollars. Without a similar sum in the state's coffers next year, lawmakers face more limits on how to spend taxpayer dollars and which funding needs to prioritize.

While another budget cycle might prompt some tough calls on spending priorities, some see an ongoing reckoning within the party as it wrestles with its changing base and the shift in party platforms that follow.

Andrews said that since Donald Trump's election in 2016, the two major parties have realigned economically, with well-off suburban communities where Republicans used to dominate turning bluer while Democrats' strength in blue-collar communities faded.

"I think with that realignment of the electorate also comes some realignments in values," he said. "So I think something that's concerned me is seeing the Democratic Party kind of very slowly over the last six years become a little more corporate, a little more ok with this sort of thing."

Contact Clara Hendrickson at chendrickson@freepress.com
Follow her on X, previously called Twitter, @clarajanehen

This article originally appeared on Detroit Free Press: Michigan Democrats wrestle with corporate spending legacy
Hungarian Economic Woes Prompt Call for Euro by Business Leader

Zoltan Simon
Mon, October 2, 2023 


(Bloomberg) -- The head of one of Hungary’s biggest manufacturers called for euro adoption after policies under Prime Minister Viktor Orban produced one of the worst economic crises in the European Union in the past year.

After a year-long recession, a brush with a currency crisis, the bloc’s fastest inflation and the suspension of crucial EU funding over democratic concerns, Hungary should waste no time committing to joining the euro and embracing the EU’s values, according to Otto Sinko, the co-chief executive officer of contract manufacturer Videoton Zrt.

“A timetable for euro adoption would by itself have a stabilizing factor, especially if it’s coupled with political steps that would make peace with the EU,” Sinko said in a written response to Bloomberg questions.

Brussels and Budapest have been in a standoff over democratic values after more than a decade of power consolidation by Orban, with graft and rule-of-law concerns paving the way for a halt in more than $30 billion in EU financing.

At the same time, Orban’s government has grown closer to Russia and China even as much of the rest of the EU takes measures to curb their influence.

“I don’t approve of the maverick, eastern-oriented steps,” Sinko said. “Hungary’s path is toward the West, not the East.”

While Sinko said his call for the euro was his personal opinion rather than the position of Videoton, which he co-owns, the comments are notable coming from the head of a company that’s one of Hungary’s biggest employers and one that may benefit from a weaker forint.

The forint has dropped more than 30% against the euro since Orban returned to power in 2010. Its weakening accelerated last year as record pre-election spending turbo-charged an EU-wide surge in prices while emergency monetary policy moves undermined investor confidence. The forint fell near a six-month low last week.

“It’s not true that a weak forint is the sole focus for exporters,” said Sinko, whose company’s 9,200 workers assemble everything from car parts to household appliances for export to EU markets. “That only makes sense if there’s economic stability.”

Central bankers were forced to hike interest rates to 18% last October to stabilize local assets in an emergency that took until last week to unwind. The move halted a “creeping euroization” that saw almost half of new savings made in euros rather than forint at one point, Deputy Governor Barnabas Virag said in April.

While inflation is expected to slow to single-digit territory before year-end and the government sees the economy growing from the third quarter, the question of how to cement those gains while shoring up the budget has revealed fault lines among top policymakers.

Last month, key Orban ministers clashed with the central bank over monetary policy and inflation, while divisions emerged inside the cabinet over ways to rein in the record budget shortfall and whether the euro could help.

Finance Minister Mihaly Varga even raised the possibility of pegging the forint to the euro under a mechanism that precedes the currency switch. Orban’s cabinet minister, Gergely Gulyas, said Thursday that it’s too early to talk about euro adoption.

Sinko said the seven eastern European nations that adopted the euro since they joined the EU were better off during times of economic turbulence, as they didn’t suffer steep currency depreciations or need to maintain high foreign-currency reserves. They also reduced the chance for “monetary-policy errors,” he said.

“When we talk about euro adoption many only talk about the the disadvantages, such as losing monetary-policy independence,” Sinko said. “But why don’t we list its advantages?”

 Bloomberg Businessweek

Ukraine Recap: EU Convenes in Kyiv in First Meeting Outside Bloc

Bloomberg News
Mon, October 2, 2023 



(Bloomberg) -- European Union foreign ministers gathered in Kyiv to renew their commitment to Ukraine’s defense against Russia’s invasion, the first time the bloc has held a meeting outside its territory and in a country at war.

Before talks with Ukrainian Foreign Minister Dmytro Kuleba, EU foreign-policy chief Josep Borrell said member states “deeply and thoroughly” regretted Saturday’s decision by US lawmakers to pass a spending bill without $6 billion in additional funding for Ukraine, part of an effort to avoid a government shutdown in Washington. Kuleba dismissed the move by the US Congress as an “incident” rather than a lasting shift in policy, while Borrell said he’s certain it will be “reconsidered.”

“We don’t feel that the US support has been shattered because the United States understands that what is at stake in Ukraine is much bigger than just Ukraine,” Kuleba told reporters. “It’s about the stability and predictability of the world and therefore I believe that we will be able to find the necessary solutions.”

Markets

Saudi Arabia and Russia, the two nations leading OPEC+ oil cuts, boosted their crude exports last month, offering solace to a global market where supply is getting increasingly tight. The two lifted their combined crude exports by about 1 million barrels a day in September, though their collective flows remained well down on where they were as recently as July.

Chile’s Economy Nears Recession After Surprise Activity Drop

Matthew Malinowski
Mon, October 2, 2023 


(Bloomberg) -- Chile’s economic activity posted its biggest monthly drop since May as services declined, pushing one of Latin America’s richest nations toward recession and paving the way for more big interest rate cuts.

The Imacec index, a proxy for gross domestic product, fell 0.5% in August from July, compared to the median estimate for a 0.2% gain from analysts in a Bloomberg survey. It matched the 0.5% decline recorded in May. From a year prior, the index dropped 0.9%, the central bank reported on Monday.

Chile has been battered this year by high interest rates, above-target inflation and uncertainty among top trading partners like China. Today’s figures indicate the country is heading back into recession after GDP contracted in the second quarter. Still, the economy is expected to gradually bounce back, expanding 2% in 2024 after posting one of the region’s worst performances this year.

“A technical recession in the third quarter is very probable, as it only requires a 0.3% month-on-month drop in September,” Jorge Selaive, chief economist at Scotiabank Chile, posted on X, the platform formally known as Twitter.

The peso fell as much as 0.5% against the dollar in morning trading. Two-year swap rates, a measure of key rate expectations, dropped 6 basis points to 6.39%.

Education Services

Services declined 0.9% on the month in August with the sector dragged down by eduction, while mining slipped 0.3%, according to the central bank. On the other hand, commerce gained 0.6% on the back of automobile sales.

What Bloomberg Economics Says

“August activity data added evidence that domestic demand is cooling in Chile. Activity figures support decelerating inflation and back our expectations for the central bank to continue cutting interest rates into 2024. They are likely to keep weakening pressure on the currency.”
— Felipe Hernandez, Latin America economist

Policymakers cut borrowing costs by a total of 175 basis points in their last two meetings, lowering the key rate to 9.5%, and economists expect it to hit 5% in a year. Central bankers have room to ease as inflation slows toward target.

Next year will be marked by low inflation and a revival of the local economy, President Gabriel Boric said in a televised speech late on Thursday. His words echoed comments from Finance Minister Mario Marcel, who said in an interview last month that the economy is stabilizing after a series of shocks.

Still, many analysts are not as up-beat. Unemployment rose more than expected in August as thousands of jobs were destroyed, according to official data published on Friday, while local political uncertainty is rising again.

“We will see slightly negative readings in coming Imacec reports,” analysts at Bice Inversiones wrote in a note. “As a result, for 2023 we expect activity to contract by about 0.5%”

--With assistance from Rafael Gayol and Giovanna Serafim.

 Bloomberg Businessweek