Friday, October 06, 2023

Kaiser Permanente health workers threaten more strikes if demands not met

PUBLISHED FRI, OCT 6 2023
Spencer Kimball@SPENCEKIMBALL

KEY POINTS

Kaiser Permanente workers are threatening further strikes if executives don’t meet their demands over health-care staffing and job outsourcing.

More than 75,000 workers are currently on strike in California, Colorado, Washington and Oregon.

The strike is scheduled to end at 6 a.m. Saturday local time.

Bargaining sessions between executives and workers are scheduled for next Thursday and Friday.



Striking Kaiser Permanente workers hold signs as they march in front of the Kaiser Permanente Vallejo Medical Center on October 06, 2023 in Vallejo, California.
Justin Sullivan | Getty Images

Kaiser Permanente workers on Friday threatened further strikes if executives don’t meet their demands over health-care staffing and job outsourcing.

More than 75,000 Kaiser workers are scheduled to end a three-day work stoppage in California, Colorado, Washington and Oregon at 6 a.m. Saturday local time. The current strike, which began Wednesday, is said to be the largest walkout by health-care workers in U.S. history.

Nearly 60,000 of the workers currently on strike are in California where Kaiser is headquartered.

The Coalition of Kaiser Permanente Unions said workers will provide 10 days notice before walking out again.

Bargaining sessions between workers and Kaiser executives are scheduled for next Thursday and Friday.

Disagreements over job outsourcing have become a major sticking point in recent negotiations, according to the coalition. It accuses Kaiser of refusing to limit outsourcing and subcontracting jobs.

Kaiser, the largest health-care nonprofit in the U.S., said Thursday that tentative agreements have been reached in several areas and that the company is committed to negotiating a new contract.

Workers are also demanding long-term investments to increase staffing amid a workforce shortage. The coalition of unions has said the short-staffing crisis has led to unsafe working conditions that are affecting the quality of care patients receive.

Kaiser workers are on strike. These are the issues at stake.

By Jenna Portnoy
WASHINGTON POST
October 6, 2023 


More than 75,000 Kaiser Permanente workers walked off the job this week, launching a three-day strike with direct implications for patients in what labor organizers billed as the largest health-care worker strike in U.S. history.

The organization, which serves nearly 13 million patients, said it was hopeful a compromise could be reached even as medical support workers picketed in Virginia, Colorado, Oregon and California. But a solution had not materialized nearly a week after union workers’ contracts expired Sept. 30. The strike, expected to last three days in most places, is set to end at 6 a.m. Saturday, but in a statement Friday, coalition officials said they have not ruled out issuing another 10-day strike notice after that.

Kaiser Permanente strike hits classic labor issues in post-pandemic era

The concerns protesters cited on the picket lines echo those of other health-care workers who launched strikes at hospitals and clinics across the country this year as the industry struggles to move past the burnout and staffing issues that have marked the pandemic.

Here’s what’s animating the debate:

More pay



Inflation has rocked Kaiser employees and the nation’s lowest-wage earners, effectively forcing workers to take a pay cut for doing the same jobs. And while inflation is down significantly since last summer, it began to creep back up in August, and health-care workers said jobs with Kaiser — the largest nonprofit private health-care organization in the nation — should better equip them to weather higher grocery bills and child-care costs.

The nonprofit ran a net loss of $4.5 billion in 2022 on $95.4 billion in operating revenue, marking a sharp turn from the previous year’s positive net income of $8.1 billion.

In negotiations, the coalition has requested a $25-an-hour minimum wage for workers, annual pay increases of 7 percent for the first two years of the contract and 6.25 percent increases for the latter two years.

Kaiser has said it would raise minimum starting pay to between $21 and $23 an hour, with annual raises of between 3.5 and 4 percent, officials said in a statement Friday. The coalition of unions said starting pay varies by position and region but that many Kaiser employees earn less than $20 an hour. A Kaiser spokeswoman said Friday that the average hourly rate for coalition employees is $35.75 an hour, or about $74,000 annually plus benefits.


5 things to know about the Kaiser strike if you’re a patient

Increased staffing

The pandemic exacerbated a long-standing staffing crisis in health care, further straining workers who already were white-knuckling their way through shifts that put them and their families at risk of contracting the coronavirus. The task was especially daunting before vaccines and treatments were available, when questions abounded about how the virus spread.

During that time, health-care workers retired or sought less-taxing, higher-paying jobs in droves, leaving those who remained more stressed. As patients who put off routine care returned, workers found themselves confronted with an onslaught of more work with fewer employees. They pressed the company to beef up hiring to accommodate the crush of patients and help them return to a sense of normalcy.

Kaiser officials say all health-care organizations have struggled to fill vacancies post-pandemic.


Lots of jobs at stake


Doctors and registered nurses, whom patients might think of first when they visit a medical office, are not the ones striking. Instead, critical support staff and other direct caregivers, who are just as likely to impact the flow and quality of care, are protesting for a new contract.

They include licensed vocational nurses, emergency department technicians, radiology technicians, ultrasound sonographers, teleservice representatives, respiratory therapists, X-ray technicians, certified nursing assistants, dietary services, behavioral health workers, surgical technicians, pharmacy technicians, transporters, home health aides, phlebotomists, medical assistants and housekeepers.

In Virginia and D.C., pharmacists and optometrists also were affected. Many who walked the picket line outside Springfield Medical Center said they had the support of colleagues who will be negotiating their contracts soon.

A strong moment for labor

Experts say a resurgence in the power of unions has emboldened members to form unions for the first time and exercise existing unions’ authority for the first time in decades. Work stoppages or threats of action have forced some major U.S. employers to back down at the bargaining table.

The screenwriters guild last week reached a tentative agreement with Hollywood studios to end a nearly five-month strike, and in July, 340,000 UPS workers won their strongest contract in decades on the strength of a strike threat alone.

The next in-person bargaining session is scheduled to begin Oct. 12, Kaiser and coalition officials said Friday in separate statements.

Lauren Kaori Gurley contributed to this report.

Why are thousands of Kaiser health care workers on strike?

 5 questions answered


Michael McQuarrie, Director of the Center for Work and Democracy, Arizona State University
Thu, October 5, 2023 
THE CONVERSATION

Kaiser Permanente health care workers in five states and Washington, D.C., are rallying against low wages and understaffing that they say is undermining patient care. AP Photo/Damian DovarganesMore

More than 75,000 Kaiser Permanente health care workers began a three-day strike in Virginia, California, Colorado, Washington state, Oregon and Washington, D.C., on Oct. 4, 2023, after company executives and eight unions representing aides, techs, support staff and other employees failed to agree on the terms of new contracts. This is the largest U.S. health care strike on record. In a statement it released when the walkout started, Kaiser asserted that it wanted to reach a deal soon with the striking workers.

Although hospitals and emergency rooms are still open during the strike, and Kaiser is making use of temporary workers, many of its noncritical services are temporarily closed or operating under reduced hours. The strike does not include any nurses unions or doctors.

The Conversation asked Michael McQuarrie, an Arizona State University sociologist who directs its Center for Work and Democracy, to explain why this strike is happening now and how labor actions like this can affect patient care.

1. Why is this historic strike happening now?

The two main reasons are concerns over staffing levels and practices and dissatisfaction with pay that hasn’t kept up with inflation and was too low to begin with.

Kaiser says its options are limited due to a national shortfall in all sorts of health care workers, including home health aides and nurse practitioners. Workers counter that higher pay and better working conditions would attract more applicants.

Health care workers have long worried that inadequate staffing is undercutting the quality of care for patients – this has been a central issue in contract negotiations and strikes for years. But the COVID-19 pandemic greatly exacerbated the problem.

At the same time, inflation has outstripped negotiated wage increases for Kaiser workers. Kaiser is currently offering some workers in Northern California and Washington state 4% annual raises for the four years covered by the new contract and lower raises for everyone else. The unions have rejected this offer, which they say would not make up for past inflation and would unnecessarily create different wage scales based on the region where workers are located.




2. Has Kaiser’s financial management played a role too?

Kaiser, which provides health care for 12.7 million Americans, took in US$95.4 billion in revenue in 2022 but ran a $1.2 billion operating loss that it attributed to “strong economic headwinds in the financial markets” – suggesting that its investments were to blame rather than its health care operations.

For 2021, Kaiser reported that it had about $56 billion in unrestricted cash and investments, excluding assets tied to employee and retiree pensions.

Kaiser’s profits in the first half of 2023 totaled about $3.4 billion, however. And with the exception of its losses in 2022, Kaiser has been consistently profitable for years.

Concerns over low worker pay are growing while Kaiser’s executive compensation is increasing. As of 2021, its CEO Gregory Adams was making more than $15.5 million a year in pay and “other” compensation.
3. But isn’t Kaiser a nonprofit – and does that mean it has any special obligations?

Like many health care systems, Kaiser is a nonprofit. This means it pays very little in taxes. In exchange for their special tax status, nonprofits are supposed to provide public benefits.

Nonprofits may make more money than they spend, but they can’t distribute profits to its shareholders. Nonprofit executive compensation must be “reasonable,” according to the Internal Revenue Service – although it can be hard to determine how much is too much.


4. Are there any precedents for this strike?

Health care strikes are not unusual, with more than 40 occurring in the past two years. However, the industry and the workforce are heavily fragmented, which means that these strikes tend to be relatively small.

In September 2022, the Minnesota Nurses Association took 15,000 members on strike over many of the same issues, such as staffing and inflation. That strike, which lasted three days, was the largest health care strike in U.S. history by that point in terms the number of workers involved.

Prior to that, the largest was probably another Minnesota strike in 2010, in which about 12,000 nurses walked off the job for 24 hours.

Kaiser has experienced much smaller strikes in the past, such as a walkout in 2015 of about 75 mental health clinicians.

5. How much are patients harmed during health care strikes?

It depends on the strike, but usually not much.

Critical care Kaiser facilities will remain open, though the strike will likely cause some delays in care due to short staffing and long lines.

Some appointments and elective procedures at the affected hospitals are being postponed, and nonessential functions like labs and radiology departments are temporarily closed or their hours are being reduced.

Nurses, who are very important bedside caregivers, are part of a different coalition of Kaiser unions. While they won’t be on strike, they may have to help cover work not being done by aides and other support staff who are on the picket lines.

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

It was written by: Michael McQuarrieArizona State University.


Read more:


Worker strikes and union elections surged in 2022 – could it mark a turning point for organized labor?


Waves of strikes rippling across the US seem big, but the total number of Americans walking off the job remains historically low

Michael McQuarrie works with and does research on unions and other organizations. The Center for Work and Democracy has received funding from United Healthcare Workers West/SEIU, which is part of the Coalition of Kaiser Permanente Unions.


Kaiser strike nears its end with no agreement — but another strike could come soon


Outside Kaiser Permanente Zion Medical Center on Friday, Luceli Boggs was among the healthcare workers who picketed on the sidewalk as part of a three-day strike coordinated by the Coalition of Kaiser Permanente Unions.
(Nelvin C. Cepeda / The San Diego Union-Tribune)

 

  

  

  

A 10-day notice of another strike may be issued after Saturday, union leaders said; bargaining will resume Thursday
OCT. 6, 2023 

The Kaiser Permanente workers’ strike continued into its third and final day on Friday, with the possibility of another strike still up in the air as both sides have yet to reach an agreement.

Bargaining won’t resume until Thursday, with another bargaining session scheduled for Friday.

Meanwhile, another strike could be announced as soon as Sunday. The Coalition of Kaiser Permanente Unions said Friday that it may issue a strike notice after the current strike ends at 6 a.m. on Saturday

However, any such strike wouldn’t begin until 10 days after a notice is issued.

Roughly 75,000 Kaiser workers in multiple states have taken part in a strike that began Wednesday, according to the union — among them licensed vocational nurses, pharmacists and pharmacy technicians, radiology technicians, ultrasound sonographers, surgical technicians, certified nursing assistants, behavioral health workers, medical assistants, optometrists, respiratory therapists, x-ray technicians and hundreds of other positions.

The strike does not include doctors or registered nurses.


Kaiser workers head into final day of three-day strike with no agreement  Oct. 5, 2023

Replacement workers have been brought in to fill in jobs. Kaiser Permanente has said the strike may cause high call volumes and longer wait times for patients.

Kaiser has said its hospitals, emergency departments and pharmacies would remain open during the strike, but some laboratories have closed, including labs in Bostonia, Carlsbad, Carmel Valley, El Cajon, Escondido, Rancho Bernardo, Rancho San Diego and Viewridge.

The coalition has said they are striking over concerns about outsourcing and staffing levels that they say are unsafe and have caused high turnover and long patient wait times.

Kaiser offered a $23-per-hour minimum wage for new hires in California starting 2024, rising to $24 in 2025 and $25 in 2026. The union has called for 3.5 percent to 3 percent pay raises for each of a proposed new contract’s four years.

A major issue in recent days, union officials said, has been outsourcing. The union coalition wants limits on outsourcing and subcontracting.

Kaiser, union reach tentative deal on some issues with others unresolved as strike heads to second day  Oct. 4, 2023

Kaiser has said it has worked to address those concerns by updating an outsourcing side letter of agreement. It also said it has offered increases in funding for employee development and education, improvements to retiree medical benefits and more.

“We look forward to reaching a new agreement that continues to provide our employees with market-leading wages and benefits, and ensures our high-quality care is affordable and available to meet our members’ needs,” said Jennifer Dailard, spokesperson for Kaiser Permanente, in an email Friday.

Kaiser has been bargaining with the national union coalition since April.

Kaiser Permanente patients and picketers share their strike stories: 'So heartbreaking'

Korin Miller
Updated Thu, October 5, 2023 

Some patients say the Kaiser Permanente strike, which started Oct. 4, has led to procedures being postponed or canceled. (Amanda Andrade-Rhoades for the Washington Post via Getty Images)


More than 75,000 employees of Kaiser Permanente started a three-day strike on Wednesday, which is being called the largest health care strike in U.S. history. The strike, which affects health care workers and patients in multiple states, is over staffing shortages and what employees say is low pay.

The Coalition of Kaiser Permanente Unions specifically calls this an "unfair labor practice strike" on its website, noting that workers will strike through Saturday morning. "This three-day strike will be the initial demonstration of our strength to Kaiser that we will not stand for their unfair labor practices," according to the site.

"Like all collective bargaining agreements, a number of people across the workforce were looking at ways to improve the work environment," Richard Ricciardi, executive director for the Center for Health Policy and Media Engagement at George Washington University, tells Yahoo Life. A lot of these workers put in extra hours while dealing with understaffing during the pandemic and have continued to do so since, he says.

"Post-pandemic, they've been giving an extra yard to serve their communities, states and country, and they're not feeling valued for that effort," Ricciardi says. "Thus, they're striking to improve working conditions and salary."

The strike is also about safety and quality of care, he says. "The health care workforce is very much concerned about safety and health," Ricciardi says. "There's a pretty direct connection between the quality of the work environment and the ability to provide safe care."

Doctors and many nurses are not involved in the strike, according to the New York Times, but support staff and other employees are. Those include X-ray technicians, receptionists, medical assistants, sanitation workers and pharmacy employees — and that's expected to lead to delays in nonurgent procedures such as cancer screenings, as well as appointment times, Ricciardi says. Some Kaiser Permanent labs have also temporarily closed, the N.Y. Times reports.

Kaiser Permanente is the country's largest private nonprofit health care organization, serving 12.7 million Americans. So what is the strike like for patients and why are workers picketing in the first place? Read a breakdown, below.
How is the strike affecting patients?

Some patients have spoken out publicly about how the strike is affecting them and their families, including having procedures postponed or canceled. Here are their stories:

Lisa Franceschi Schnaidt shared on Facebook that her husband, John, had appointments for lab work and chemotherapy that were canceled due to the Kaiser strike, noting that she was "still reeling" from a call she got about it. "In what universe would second line chemotherapy to a pancreatic cancer patient with metastasis to the lung be considered 'non-urgent appointment or procedure?!'" she wrote. "I’m appalled at this whole thing. Taking our foot off the gas pedal right now cannot be in John’s best interest." Schnaidt also posted on Caring Bridge that she was told her husband would have his appointments next week. "God, I hope so," she wrote.

California resident Walter Adams's wife Sue had her 10-year-old pacemaker replaced last week, but she's experienced complications. “She had some problems with it, her blood pressure skyrocketed, her thinness of her blood got way too thin, so they wouldn’t let her be released [from the hospital],” Adams told CBS 8. Doctors were finally able to stabilize Sue Adams's blood pressure and released her from the hospital two days later, but her follow-up appointment with her cardiologist to check the pacemaker and remove bandages was canceled due to the strike. “The whole thing was really stressful for me because the complications with the surgery, the way that ended and we were worried about what the outcome was going to be Wednesday at the follow up appointment," Adams said.

Michael Signorio told CNN that he spent half a day waiting to get care after suffering from a torn meniscus in his knee. “I spent 12 hours [in the ER]," he said. "You know, it just didn’t sit right. Now, why? Because they’re understaffed, they need more people.” Signorio said he has an appointment in two weeks and he's been trying to see a doctor for three weeks. "I’ve been off work for a little bit now and I’m not liking it, I’m sure work’s not liking it,” he said.

California mom Tiffany Young told NBC News that her son Caden's ear tube surgery, which was scheduled for this week, was postponed until December because of limited staffing. The 17-month-old has suffered from recurring ear infections. "That was really upsetting," Young said, pointing out that the surgery would help relieve Caden's pain and reduce how often he would need to take antibiotics. “We were talking about it all last week, this week, how we’re looking forward to it, how we hope that it’s going to make him feel so much better, and then just getting that call yesterday was so heartbreaking,” she said. “I know that it’s considered minor but, to a parent, when your baby is suffering, it’s super important."


Kaiser Permanente employees are on strike, with several workers saying there's a staffing crisis. (Watchara Phomicinda/Orange County Register via AP) (Watchara Phomicinda/The Orange County Register via AP)
Why are workers striking?

Workers have also spoken out about why they've temporarily walked off the job.

Charmaine Arellano, a medical assistant at the Kaiser Permanente Lakewood medical offices, told Fox 31 Denver that understaffing is a big issue. "Kaiser executives refuse to acknowledge how much patient care has deteriorated or how much the front line health care workforce and patients are suffering because of the Kaiser short-staffing crisis," she said. "We’re taking action because we can’t let this staffing crisis continue."

Many Kaiser Permanente workers are struggling with burnout, Jessica Cruz, a vocational nurse at Kaiser Los Angeles Medical Center, told CBS News. Workers are "trying to do the jobs of two or three people, and our patients suffer when they can't get the care they need due to Kaiser's short-staffing," Cruz said.

Kaiser Permanente health care worker Rocio Chacon told CNN that workers are "exhausted," noting that the facility that she works at reminds her of the poor health care people received when she was growing up in Mexico. "I’m having flashbacks of what it was back home, me growing up," she said. "Coming into the emergency room and waiting to be seen for hours. Or even being left tied in a room waiting for an X-ray or for lab work. You might have a condition that might not be critical, but because you have not been seen within that period of time that could potentially save your life, it can be something very simple that can turn onto a bigger issue.” Chacon also said that some nurses will sleep in their cars because they have to travel two hours to get home because they can't afford the cost of living in California. "As we speak, there are nurses that are sleeping in their cars because of two reasons," she said. "One, they can’t afford cost of living here so they have to move two, three hours [away] and then because of short staff they’re working 14, 16 hours so they’re tired. So their best choice is to be Monday through Friday in their cars."

Ultrasound technician Michael Ramey, who has worked for Kaiser Permanente for 27 years, told CBS News that his job is now stressful due to staffing shortages. "You don't have the ability to care for patients in the manner they deserve," he said. "People are working more hours than they want to be working, and even that creates a problem with patient care — if you know you're going to miss your kid's soccer game," he said. Ramey said he regularly fields complaints from patients about wait times and how long it takes to even get an appointment. "They are telling you how long it took to get the appointment, and then you have to tell them how long it will be to get results," Ramey said. "There's a breakdown in the quality of care. These are people in our communities."

Mikki Fletchall, a licensed vocational nurse based in a Kaiser medical office in Camarillo, Calif., told Fox 5 that workers feel unheard by officials at Kaiser Permanente. "They're not listening to the front line health care workers," she said. "We're striking because of our patients. We don't want to have to do it."

Pamela Reid, an optometrist at Kaiser's Marlow Heights Medical Center in Maryland, told NPR that wait times for an appointment in her clinic were up to 10 business days before the COVID-19 pandemic hit. Now, patients typically have to wait two months to be seen, and the number of optometrists across Kaiser's service regions has dropped from about 70 to fewer than 50, she said. Patients are "really already being affected," Reid said, adding, "Our goal with the strike is to hopefully change that."
Ricciardi says that there has been some misconception about why workers are striking. "There's this idea that people are going on strike because they're greedy," he says. "But in reality, only a very small percentage of money that goes into health care is actually going to health care professionals."

The strike is expected to end on Saturday. Negotiations have hit a stalemate, according to Reuters.

Kaiser Health Care Workers Enter Third Day of Strike

October 6, 2023

Thousands of Kaiser Permanente health care workers in Southern California and beyond returned to the picket lines Friday for the final day of a three-day strike billed as the largest of its type in U.S. history.

According to the Coalition of Kaiser Permanente Unions, striking workers are planning to return to work at 6 a.m. Saturday.

However, union officials said they may issue a 10-day strike notice on Saturday, potentially setting the stage for further walkouts if a contract agreement is not reached

Kaiser officials said the next “large, in-person bargaining session” is scheduled for Thursday, although in the meantime, “committees and local bargaining teams representing both sides will continue to meet.”

“As frontline healthcare workers conclude the current strike action on Saturday morning, our resolve to advocate for the safe staffing that our patients need has never been stronger,” Georgette Bradford, an ultrasound technician from Sacramento who is a member of the union’s bargaining team, said in a statement released by the union Friday.

“Following this historic work action by tens of thousands of frontline healthcare workers in response to unfair labor practices by Kaiser executives, we are hopeful that the company will refrain from any further violations of federal labor laws as we resume formal talks on Thursday.

“Frontline healthcare workers remain ready to continue taking the necessary steps to protect our patients from the dangers of the Kaiser short staffing crisis and to defend our rights.*

A representative for Kaiser said in a statement Friday morning that most procedures were not delayed by the strike, and contingency plans were in place to minimize disruptions.

“We are fortunate that most procedures were not delayed or deferred, most routine surgeries were not rescheduled and our ambulatory appointment access has been close to normal, in part because we expanded access just prior to the visit and converted many appointments to phone and video.

“Kaiser Permanente remains committed to reaching an agreement that is good for our employees, our members, and our organization, and we will continue to bargain in good faith with our Coalition partners,” according to Kaiser.

The workers’ contract expired Saturday, but bargaining continued over the weekend and again Monday, Tuesday and through the night into Wednesday, to no avail. The strike began at 6 a.m. Wednesday.

“Now more than ever Kaiser Permanente needs to retain and attract qualified healthcare professionals. Outsourcing and subcontracting would have the opposite effect,” Kathleen Coleman, a medical assistant at Arapahoe Primary Care in Colorado, said in a statement released by the union Friday.


An estimated 75,000 Kaiser workers were taking part in the strike, according to the Coalition of Kaiser Permanente Unions. In addition to California, picketing took place in Colorado, Washington, Oregon, Virginia and Washington, D.C.

The coalition has been pushing for higher wages commensurate with inflation, increased staffing and working conditions. The unions have also repeatedly accused Kaiser of bad-faith negotiating, an allegation Kaiser has denied.

“At issue, health care workers say, are a series of unfair labor practices related to bargaining in bad faith, along with simmering staff concerns related to unsafe staffing levels that can lead to dangerously long wait times, mistaken diagnosis, and neglect,” according to an earlier union statement

“After years of the COVID pandemic and chronic understaffing, Kaiser healthcare workers are calling on management to provide safe staffing levels.”

The union has also accused Kaiser of cutting performance bonuses for employees, failing to protect employees against subcontracting and offering wages that fail to keep pace with inflation — all issues that Kaiser has refuted.

“Frontline health care workers are awaiting a meaningful response from Kaiser executives regarding some of our key priorities including safe staffing, outsourcing protections for incumbent healthcare workers, and fair wages to reduce turnover,” Caroline Lucas of the Coalition of Kaiser Permanente Unions said in a statement.

“Health care workers within the coalition remain ready to meet at any time. Currently, the strike continues, and there are no sessions scheduled at this hour.”

Kaiser officials said the most recent bargaining sessions did result in a “number of tentative agreements,” and they insisted the health care system’s latest offers address the union’s demands. Kaiser officials said the company is offering:

— “across-the-board” wage increases in all markets over four years;

— an improved Performance Sharing Plan with the potential for payouts of up to $3,750;

— minimum wages of $23 an hour in California and $21 an hour in other markets; and

— renewal of tuition assistance and training programs.

“We remain committed to reaching a new agreement that continues to provide our employees with market-leading wages, excellent benefits, generous retirement income plans, and valuable professional development opportunities,” according to Kaiser.

The company also affirmed its commitment to hiring, confirming that it has already reached a goal of hiring 10,000 new union-represented employees before the end of the year.

“In total over the past two years, Kaiser Permanente has hired more than 50,000 people to join our teams,” according to the company.

On Wednesday, Kaiser officials issued a statement saying rising inflation has led to a “massive surge” in expenses, and has made it tough for the company to balance taking care of its employees with being affordable to patients.

“As noted in a recent report from the American Hospital Association, rising inflation has led to health care experiencing a `massive surge’ in expenses driven by drugs and supplies, equipment shortages, staffing costs and supply chain disruptions,” Kaiser officials said.

“At the same time, in the wake of the pandemic, demand for care has increased dramatically, as people come in for care that has been delayed. Kaiser Permanente is not immune to these inflationary pressures.”

Among the workers involved in the strike are licensed vocational nurses, emergency department technicians, radiology technicians, ultrasound sonographers, teleservice representatives, respiratory therapists, X-ray technicians, certified nursing assistants, dietary services, behavioral health workers, surgical technicians, pharmacy technicians, transporters, home health aides, phlebotomists and medical assistants, union officials said.




UAW president announces last-minute major contract breakthrough with GM, no expanded strikes

FOX 2 Staff
Fri, October 6, 2023

DETROIT (FOX 2) - The united autoworkers union said it would not expand any strikes Friday after announcing a major breakthrough in negotiations with General Motors at the last minute.

President Shawn Fain said GM would write the UAW into its National Master Agreement as it relates to electric vehicle manufacturing and battery plants.

"We've been told for months this is impossible. We've been told the EV future was a race to the bottom. We called their bluff. This cannot be understated," said Fain.

Fain said the breakthrough came minutes before the UAW was prepared to strike major engine plants owned by GM. The UAW's update is the first to come without a major targeted strike - a sign that labor talks between the Detroit 3 and the union are progressing.

Fain said there was still gaps in wages and cost-of-living-adjustments between the two parties, but both were moving in the right direction.

MORE: A look at the UAW's ‘transformative win’ in contract GM negotiations

Wearing an "Eat The Rich" shirt, Fain touted gains its made with Ford, Stellantis, and GM Friday, praising wage increase proposals up to at least 20%, a restoration of COLA protections previously set in 2007 from two of the automakers, and a reduced timeline of reaching full pay status.

"We are making significant progress," Fain said. "In three weeks, we've moved these companies further than anyone thought possible."

The effects from the United Autoworkers Union strike are trickling down into the suppliers, affecting dozens of companies and prompting layoffs from dozens of suppliers and thousands of workers from automaker-owned plants.

But while immediate concerns from the automakers point toward hopes of getting back to building cars and trucks, the union has continually expressed concern about it being left behind as the industry pivots to battery-powered vehicles.

MORE: Here's Stellantis' latest offer to the UAW

GM's breakthrough Friday, which the UAW said came minutes before Fain's announcement that they would call on workers at one of the companies major engine plants, is the first development that involves battery plants.

Ford previously said the UAW was holding a deal hostage over them.
Where negotiations stand

Fain gave general updates about where things stand on negotiations Friday.

Wages

Ford has offered a 23% wage increase to the UAW. They also agreed to a progression to the highest wage of 3 yearsGM and Stellantis are both around 20% wage increases. Both agreed to a wage progression of 4 years


GM and Stellantis are both around 20% wage increases. Both agreed to a wage progression of 4 years
COLA

Both Stellantis and Ford have committed to returning to the 2007 cost-of-living-adjustment formula


GM hasn't yes guaranteed that

Temporary workers

Temporary workers at Ford will make $21 an hour


GM and Stellantis have agreed to pay temps $20 an hour


GM agrees to add EV plant to UAW contract


WLNS Lansing
Fri, October 6, 2023 

UAW holds off on expanding strikes against Detroit's Big Three, cites progress with automakers


Breck Dumas
Fri, October 6, 2023 at 12:58 PM MDT·3 min read
4

United Auto Workers President Shawn Fain touted the union's progress in contract negotiations with Detroit's Big Three automakers on Friday in an address to members, and did not name any new targets in its ongoing strike against Ford, General Motors and Stellantis.

Fain was expected to lay out the UAW's next moves in his latest announcement on Facebook, after escalating the strike during his past two weekly addresses.

United Automobile Workers (UAW) President Shawn Fain speaks as members and their supporters gather in Warren, Michigan, on August 20, 2023. The union ramped up its incremental strike against the Big Three again on Friday.

The UAW launched a simultaneous but limited strike against all three automakers on Sept. 15, and has vowed to increase strike targets at any automaker that is not making sufficient progress in contract talks from the union's perspective.

STEEL INDUSTRY DENTED BY UAW STRIKE AGAINST DETROIT'S BIG THREE

The union named new facilities to strike at against GM in both prior updates, but spared Ford in the first escalation and Stellantis dodged the second.

Fain signaled Wednesday that a single automaker would be spared from strike escalation this week, once again. In a message on X, formerly known as Twitter, he likened the Big Three's CEOs to contestants on "The Bachelor," teasing his Friday announcement and telling people to tune in and "see who gets the rose!"

Fain said Friday the UAW threatened GM this week with adding one of the company's "biggest and most important plants" to the strike, and it "was that threat that brought GM to the table."

He said GM has now agreed to include electric vehicle battery manufacturing facilities under its national master agreement with the union, saying with the move that the company has "leapfrogged the pack in terms of a just transition" to EVs.

GM ESTIMATES A $200M LOSS SINCE UAW STRIKE BEGAN

The UAW president pointed to progress at other automakers, too. He said Ford has boosted their wage increase offer to 23% over the life the four-year contract, while Stellantis and GM's proposals are around 20%. The union is asking for raises of 40%.

"I wish I were here to announce a tentative agreement with one or more of these companies, but I do want to be really clear: We are making significant progress in just three weeks," Fain said. "We have moved these companies further than anyone thought was possible."

United Auto Workers (UAW) members and supporters on a picket line outside the Ford Motor Co. Chicago Assembly Plant in Chicago, Illinois, US, on Saturday, Sept. 30, 2023.

Currently, around 25,000 of the 150,000 UAW members employed by the Big Three are on strike, and Fain reiterated that the union is willing to expand the strike nationwide if talks drag on.

"The Big Three know we're not messing around and they know if they want to avoid further strikes, then they'll have to pony up," Fain said.

"I've heard members who want to bring down the hammer, strike all the truck plants, hit the Big Three where it hurts – and there is a time and place for that," he continued. "And believe me, if the Big Three don't continue to make progress, that time's going to be coming and real soon. We're not going to wait around forever."


UAW strike: GM agrees to battery plant contract concession

Nicholas Jacobino and Josh Lipton
Fri, October 6, 2023

Auto workers have scored what UAW President Shawn Fain called a "transformative win" in its ongoing negotiations with the big three auto makers - Ford (F), General Motors (GM) and Stellantis (STLA). GM agreed to place their electric battery manufacturing under the union's national master agreement, according to the UAW. The agreement is significant in the negotiations, given that the shift to EV production is one of the big concerns for auto workers.

Arun Kumar, Alix Partners Managing Director in Automotive & Industrial Practice, joins Yahoo Finance to break down the agreement and what it means for the auto industry at large.

When asked about the significance of the agreement Kumar said "we've been importing [EV] batteries from China. I think having those manufacturing plants into the UAW mix allows expansion of jobs that could've been lost because you have less labor hours required to produce EVs".

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

JOSH LIPTON: Major developments in the negotiations between autoworkers and the United Auto Workers union. UAW president Shawn Fain announced a breakthrough in what he says will dramatically change negotiations. Take a listen.

SHAWN FAIN: We were about to shut down GM'S largest moneymaker in Arlington, Texas. The company knew those members were ready to walk immediately. And just that threat has provided a transformative win. GM has now agreed in writing to place their electric battery manufacturing under our national master agreement.

JOSH LIPTON: And because of the developments, there is no expansion of the strike this week. Automaker stocks trading near the highs of the day. And joining us now to talk about this is Arun Kumar, AlixPartner's managing director in the automotive and industrial practice. So Arun, let me get your take on the news here. Listen, UAW Shawn Fain, you heard him there saying there's been progress, no new strikes this week. Is this maybe a some ray of hope here, Arun, for getting an actual deal done?

ARUN KUMAR: Thanks, Julie and Josh. Great to be on the show. I agree. I think this is a great development for both the auto OEMs, the automakers, as well as the UAW because it allows towards a path where we can actually get back to doing business, which is to produce cars and sell great vehicles that consumers are looking for, which is in great demand.

JULIE HYMAN: I had to laugh-- Josh and I both had to laugh when we saw Shawn Fain's T-shirt that he was wearing as he was making this latest account announcement-- eat the rich. And obviously, his rhetoric has been sort of anti, quote, unquote, "fat cats" or what have you at the top of the automakers. You know, there he is.

We're showing the picture of him in that shirt again. You know, how does that factor? I know a lot of this is performance, Arun, but how does that factor into how this all gets gamed out when all is said and done?

ARUN KUMAR: Well, Julie, at the end of the day, you know, what you say in public is one thing, but what you do in private negotiations is a completely different thing. I think when you look at private negotiations, you're looking at basic facts and data to make decisions. And I think the crux of the matter, if you think about it, is that you know EVs require less labor hours to produce, which means that, you know, the UAW is concerned about how they're going to keep up with that transition to electric vehicles. And you know, the one way of looking at this is if you bring in more manufacturing back into the UAW and into North America, it's going to help them both from producing great vehicles as well as making sure that their labor force is fully participating and is able to earn a living like they've done in the last 30, 40, 50 years.

JOSH LIPTON: And I did want to ask you, Arun, there was some news here today. UAW Shawn Fain saying apparently that they did reach a deal with GM to include workers at a new battery joint venture in a new labor contract. What's the significance of that to you, Arun? Is it meaningful?

ARUN KUMAR: It's pretty meaningful because when you look at a battery electric vehicle, you know, 30% to 40% of the cost is in batteries, you know, cells, modules, and then you have the entire battery pack that goes into the vehicle. It's like an engine and a transmission in an internal combustion engine. So till now most of those battery production has been with a joint venture with other companies like Korean companies, or some Chinese companies, or we've been importing batteries from China.

So I think, you know, having those manufacturing plants into the UAW mix allows expansion of jobs that could have been lost because you have less labor hours required to produce EVs. Now, if you want to make sure that you're not losing more of that, you know, with batteries because if those are outside the master services agreement, as Shawn put it, then you have less and less labor that's required to assemble the rest of the vehicle. So that's been a big concern and a crux that, you know, had to be sorted out. And I think that's a great sign of progress that we have seen with this announcement.


UAW president says GM agreed to put battery plants under national agreement; No new targets announced

WXYZ-Detroit Videos
Fri, October 6, 2023 

United Auto Workers union President Shawn Fain detailed the latest in the negotiations between the union and the Big Three automakers on Friday, citing breaking developments shortly before his 2 p.m. Facebook Live. Fain said after threatening a possible strike at GM's Arlington Assembly, the automaker reportedly agreed to place electric battery manufacturing under the national agreement.

 

Battery plants have become a major sticking point in the UAW strike against the Detroit automakers
Associated Press Videos
Fri, October 6, 2023

Battery cell plants proposed by General Motors, Ford, and Jeep maker Stellantis have become a major sticking point in the 3-week-old strike by the UAW against Detroit automakers (Oct. 6)(AP video: Mike Householder)


UAW says its 'strike is working,' holds off on more walkouts

Updated Fri, October 6, 2023 



UAW members from the General Motors Lansing Delta Plant picket in Delta Township

By Joseph White and David Shepardson

DETROIT (Reuters) -The United Auto Workers held off on additional strikes against Detroit Three auto plants on Friday, citing General Motors' unexpected willingness to allow workers at joint-venture battery plants to be covered by union contracts.

GM's concession could be critical if rivals Ford Motor and Chrysler parent Stellantis follow suit, potentially clearing the way for final agreements that would shore up the union's position as the industry switches to making electric vehicles.

"Our strike is working, but we’re not there yet," UAW President Shawn Fain said in a livestreamed update on negotiations with the three automakers.

Automakers have more than doubled initial wage hike offers, agreed to raise wages along with inflation, and improved pay for temps, but the union wants higher wages still, the abolishment of a two-tier wage system and the expansion of unions to battery shops at all three companies.

Until Friday, the UAW had ratcheted up action against different automakers weekly to try to get its demands met. Threatening to strike against GM's Arlington, Texas, plant that makes cash-cow SUVs like the Cadillac Escalade spurred GM to agree that EV battery factories would become union plants with UAW contracts, Fain said.

Sales of electric vehicles are growing thanks in part to federal subsidies meant to support a U.S. transition to lower carbon emissions, and the union wants those workers to obtain the same pay and job protections granted other members.

"This is absolutely a big step for all the vehicle manufacturers to get a contract done," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions. "This was the last major hurdle."

Fain did not say, however, whether workers at GM's battery plants would earn the same pay as union members at other plants.

GM is building three Ultium joint-venture battery plants with South Korea's LG Energy Solution. In August, Ultium said it did not see any path for workers at its Ohio plant to be covered under a national labor agreement, rejecting a push by Democratic U.S. senators.

GM is building a fourth U.S. battery plant with Samsung SDI in Indiana.

"This defines the transition to EVs," said Harley Shaiken, labor professor at the University of California, Berkeley. "Clearly, GM's concession on the master agreement will positively be matched by Ford and Stellantis."

The fate of battery plant workers was seen as a major sticking point, with Ford CEO Jim Farley on Sept. 29 saying that Fain was holding the deal "hostage" because of that aspect of the talks.

Separately, Ford said on Friday it will lay off another 495 workers in Ohio and Michigan because of the strike's impact on two of its assembly plants.

The companies up to now have resisted including the battery plants they are building under the master agreement, arguing most were joint-venture factories with other majority owners that have to sign off on such an agreement.

"GM has agreed to lay the foundation for a just transition," Fain said in his live broadcast, adding the Detroit company had "leapfrogged" the pack in negotiations with the UAW.

GM declined to confirm Fain's news, saying only that negotiations continue. "We will continue to work towards finding solutions to address outstanding issues," the company said in statement.

Officials with LG and Samsung could not immediately be reached to comment.

Stellantis' North American chief operating officer, Mark Stewart, said in a letter to employees that the automaker is making progress in the talks, "but there are gaps that still need to be closed." Ford declined to comment.

The pressure is only rising on the three automakers as EV market leader Tesla cut U.S. prices of its Model 3 sedan and Model Y SUV, intensifying its price war and further pressuring profit on all EV models that are forced to match CEO Elon Musk's aggressiveness.

Fain also said on Friday that the UAW could still strike against highly profitable pickup truck plants if progress stalls. So far, the union has avoided walking off the job at those plants.

"We know their pain points, we know their moneymakers and we know the plants they really don't want struck," Fain said. "And they know we've got more cards left to play."

Fain has kept automakers in suspense as to whether he would order additional plants shut down, or give an automaker a pass because they had offered concessions. So far, the union has ordered walkouts at five assembly plants at the three companies and 38 parts depots operated by GM and Stellantis.

Fain said on Friday that Ford had upped its proposed wage hike to 23% through early 2028. Combined with proposed cost-of-living-adjustments, workers could receive pay increases of close to 30%, people familiar with the proposal said.

Fain's Friday video addresses have become must-see events since he launched coordinated strikes at GM, Ford and Stellantis plants shortly after midnight on Sept. 15.

GM shares ended nearly 2% higher on Friday and Ford shares gained 0.8%. Stellantis shares in Milan ended up 1%.

(Reporting by Joe White in Detroit and David Shepardson in Washington, additional reporting by Abhirup Roy, Dan Burns, Ben Klayman, Abhijith Ganapavaram and Shivansh Tiwary Writing by David GaffenEditing by Peter Henderson, Nick Zieminski and Matthew Lewis)

Car workers strike not expanded as concession made

Michael Race - Business reporter, BBC News
Fri, October 6, 2023 

The UAW started a strike targeting Detroit's Big Three on 15 September

The United Auto Workers (UAW) union has not expanded its strike action against three of America's biggest car firms, citing "significant" progress in talks.

Union boss Shawn Fain said it would hold off after General Motors had agreed that workers at its electric vehicle battery factories would automatically become union members.

But while it will not stage walk outs at new locations, the strike continues.

"Our strike is working but we're not there yet," said Mr Fain.

Roughly 25,000 car workers at GM, Ford Motor and Chrysler parent Stellantis are currently on the picket line.

The union, which represents roughly 146,000 people at the firms, declared a strike in mid-September, after contracts between the two parties expired.

It is the first industrial action by the UAW to target all three companies at once, but it has remained limited in scope, as the union calls on select locations to participate, wielding the threat of more to try to pressure the companies to agree a deal.

So far, the union has ordered walkouts at five factories and 38 parts depots operated by GM and Stellantis.

This week, the UAW considered a strike at GM's SUV manufacturing plant in Arlington, Texas, but Mr Fain said the company had "leapfrogged" the pack in talks.

GM said in a statement that negotiations were "ongoing", adding the company would "continue to work toward finding solutions to address outstanding issues".

"Our goal remains to reach an agreement that rewards our employees and allows GM to be successful into the future," the car maker said.

Why are US car workers on strike?

The union opened negotiations calling for pay rise of roughly 40% over four years and an end to practices that give newer hires lower pay and fewer benefits, among other demands.

The companies have maintained that the union's requests would impact their ability to invest in the long term. They have countered with pay increase of about 20% and some other concessions.

How workers at battery plants, formed by joint ventures, would be treated had loomed over the talks, as the industry prepares to ramp up electric vehicle production.

US President Joe Biden and former President Donald Trump, who is running for re-election, have both visited Detroit area to address the strikes, which comes as labour tensions simmer across the country.

Mr Fain said the fight for better contracts was about more than workers, saying: "This is the entire working class," at an event in Detroit.

"It's shameful where we are as a nation," he added.

UAW strike talks show progress with Ford, Stellantis. A deal may be closer than we think.

Marick Masters
Fri, October 6, 2023 

Believe it or not, the United Auto Workers and the Detroit Three automakers are making progress toward a deal.

This year's unconventional, contentious bargaining, the parties' public statements and postures and the UAW's ongoing strike – last Friday, UAW President Shawn Fain announced a third wave of strikes, now encompassing 25,000 workers across 41 Ford Motor Co., GM and Stellantis sites – can obscure that.

Fain’s announcement came at the end of a week filled with heightened tensions. Ford had paused construction of its battery production plant in Marshall, while two presidential visits had interjected politics into bargaining. As if this were not enough, violence directed at strikers occurred at several sites across the country.


Both sides have grown testy in their public statements. General Motors CEO Mary Barra laid it on the line, saying that the UAW leadership's "plan from the beginning has been to drag their membership into a long, unnecessary strike to further their own personal and political agendas." The UAW retorted on X that "Mary Barra did not show up to bargaining this week."

Despite all of that, the parties aren't that far apart on key issues, particularly at Ford and Stellantis. And reviewing the progress the parties have made provides insight into the path to a final settlement.

Biden says he's the pro-union president. But his policies hurt striking UAW workers.
The UAW and the Detroit 3 automakers have common interests

The United Auto Workers and the Detroit Three bring competing perspectives to the bargaining table.

Autoworkers seek record contracts that reflect record profits and a "fair and just" transition to electric vehicles. Automakers emphasize competitiveness and managerial flexibility. From these vantage points, the parties take specific positions on economic and noneconomic issues.

The union members’ demands fall into three categories.

Job and income security: proposals granting the right to strike plant closures; limitations on outsourcing and income and healthcare for laid off workers.


Increased compensation and pay equity: wage increases (initially 46% over four years), restoration of cost of living, elimination of tiers and expedited paths for temporary employees to transition to full-time status.


Work-life balance: paid time off and a four-day work week.

The UAW has a fourth overarching objective: The union wants the companies to bring planned electric vehicle production, like assembly plants and battery-producing joint ventures, under the union's national master contracts.

For those jobs to become part of the UAW contract would require retooling existing plants to produce electric vehicles and parts, and facilitating union recognition of new assembly and battery sites, including those operating under joint ownership with foreign-based companies. New plants would become a point of contention, with the UAW seeking that union contracts carry over to the new sites, and automakers saying the UAW has to organize those workers.


The Big Three’s proposals have largely responded to the union’s demands, plus the companies' own performance-related considerations, such as Stellantis’ well-publicized efforts to reduce absenteeism on the shop floor.

Analysts estimate that the full cost of the union’s demands would more than double the average hourly labor costs of the companies, which now hover around $65, compared to $55 for the foreign automakers and $45 to $50 an hour for Tesla. Investors flinch at the prospect of such a steep climb, fearing such largesse would return the automakers to the financial precarity of 15 years prior.

UAW to GM president: Show me a Big 3 auto executive who'd work for our union pay

The companies – eager to placate investors by preserving what they view as competitiveness and flexibility – have balked at restoring retiree healthcare and defined benefit pension plans, resisted a 32-hour work week and viewed union representation of joint ventures as a matter for the union to take up with the management at specific sites. In certain cases, the automakers want to keep using temporary employees to maintain staffing flexibility.
Ford, Stellantis are making progress on union's demands

Ford and Stellantis have made offers narrowing the gap on key items. Based on what we know, the greatest divide is between the UAW and GM.


Ford has offered to raise pay by 20% (not compounded); restore the cost of living allowance; eliminate tiers at plants in Rawlinson and Sterling Heights; transition temps to full-time status within three months of continuous service; reduce the time required for employees to move to the top wage rate from eight to four years; grant workers the right to strike over plant closures; increase company contributions to defined contribution plans; grant laid off workers two years of pay with health care; make capital investments in all North American facilities; increase profit-sharing payments by more than 13%; add a paid holiday (Juneteenth); provide two weeks paid parental leave.

Stellantis has offered to raise pay by 20% (not compounded); provide for a cost of living allowance if the Consumer Price Index, the government's measure of inflation, exceeds 3%; eliminate tiers at MOPAR (the company's parts, service, and customer care division); grant workers the right to strike over plant closures and impose moratoriums on outsourcing; grant workers the right to not cross picket lines; give workers the ability to purchase an annuity guaranteeing lifetime income payments; add the Juneteenth paid holiday; allow employees to contribute up to 6% (on top of the company’s 6%) to defined contribution plans that would be matched by the company at 50%; contribute $1 per hour for healthcare to defined contribution plans.

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GM has offered to eliminate tiers at its Customer Service and Aftersales and Components Holding units; shorten the move from the bottom to top wage tier from eight to four years; raise wages by 20% (not compounded); provide for cost of living adjustments if inflation exceeds workers’ wage increases; provide majority pay for limited time for laid off workers; raise temp wages to $20 per hour; make a $1,000 additional contribution to defined contribution plans; provide a 25% increase in retirement healthcare contribution to defined contribution plans; provide two weeks parental paid leave; add the Juneteenth holiday; make a $500 payment to retirees. The expanded right to strike, cost of living adjustments, job security protections and a path to full employment for temporary workers remain points of contention.

Getting to a deal

How can the parties now close the deal?

By focusing on their common interest: Ensuring the businesses are successful enough to invest plentifully in the future.

There are options to close the gaps.

These include making multiple offers with evident tradeoffs between them to reveal the other side’s preferences for an overall package. The parties might also consider contingency contracts that tie increasing retirement funds to earned profits. In addition, they may agree that the companies would recognize the UAW at planned EV plants operated by the companies. Finally, both sides may agree to pilot programs to experiment with alternative work weeks.

In other words, to succeed, the parties must exhibit a certain degree of flexibility, and give-and-take. But such is the nature of collective bargaining – and despite each side's fiery rhetoric, compromise remains possible.

Marick F. Masters is a professor of business at Wayne State University in Michigan. This column first published in the Detroit Free Press.

United Auto Workers union boss set to announce next moves in strike against Ford, GM, Stellantis

Breck Dumas
Fri, October 6, 2023 

United Auto Workers President Sean Fain is set to deliver his weekly address to members via Facebook live on Friday at 2 p.m. ET, at which time he is expected to announce the union's next moves in its ongoing simultaneous strike against Ford, General Motors and Stellantis.

The union's strategy of striking at certain plants and incrementally adding more targets against any of Detroit's Big Three as negotiations continue comes with an element of surprise and is designed to put pressure against the automakers and play them against each other.

Shawn Fain, president of the United Auto Workers (UAW), speaks during a UAW rally in Detroit on Sept. 15, 2023. Fain is slated to make his next address to members on Oct. 6, 2023, at 2 p.m. ET.

Since the strike began on Sept. 15 at one facility owned by each manufacturer, the UAW has expanded the strike twice, with Fain delivering the updates in his Friday video messages. GM was hit harder by the union both times while Ford was spared from the first escalation and Stellantis dodged the second.

Fain has vowed to increase strike targets at any automaker that is not making sufficient progress in contract talks from the UAW's perspective.

GM ESTIMATES $200M LOSS SINCE UAW STRIKE BEGAN

GM said Thursday it had delivered its sixth proposal to the UAW, marking its second offer this week after saying that "significant gaps remain" between the two sides as of Monday.


With the General Motors world headquarters in the background, United Auto Workers members attend a solidarity rally as the union strikes against the Big Three automakers on Sept. 15, 2023, in Detroit.

Sources told Reuters that progress was made this week in the UAW's negotiations with both Ford and Stellantis.

Currently, around 25,000 of the 150,000 UAW members employed by the Big Three are on strike, and the union has not ruled out expanding the strike nationwide if talks drag on.

Striking United Auto Workers members from the General Motors Lansing Delta Plant picket in Delta Township, Michigan, on Sept. 29, 2023.

GM said Thursday that the strike has cost the automaker around $200 million so far, and the company confirmed it secured a $6 billion line of credit the day before. Ford and Stellantis declined to provide estimates of losses when asked by FOX Business.

Data from Michigan economic consulting firm Anderson Economic Group show the UAW's strike against the Big Three cost the U.S. economy $3.95 billion in its first two weeks.

FOX Business' Joe Toppe and Reuters contributed to this report.

UAW Strike Against Detroit 3 Enters Day 21: Impact & Insights

Rimmi Singhi
ZACKS
Thu, October 5, 2023 

The ongoing strike by the United Auto Workers (UAW) union continues to draw attention as it enters its 21st day. The UAW had initiated an unprecedented simultaneous strike against the Detroit 3 automakers — General Motors GM, Ford F and Stellantis STLA — after the contract expired on Sep 14 at midnight.

The Intensifying Strike

The strike had initially affected three plants—GM's Wentzville Assembly plant in Missouri, Ford's Michigan Assembly plant in Wayne and Stellantis' Toledo Assembly Complex in Ohio. A week later, with no new labor contract in place, the UAW extended strikes to 38 parts and distribution centers across 20 states, primarily focusing on General Motors and Stellantis. Last Friday, UAW president Shawn Fain further expanded the historic strike to include a GM facility in Lansing, MI (which manufactures the Chevrolet Traverse and Buick Enclave) and a Ford assembly plant in Chicago (where Explorer and Lincoln Aviator models are built).

The historic strike began with around 13,000 autoworkers walking off initially. Another 5,600 workers at 38 GM and Stellantis-owned parts distribution centers in 20 states left their jobs last month. The union expanded its work stoppage last Friday, bringing the total number of striking autoworkers to 25,000, or 17% of the UAW's roughly 146,000 members.

Increasing Layoffs

Amid a tense standoff, the Big 3 Detroit automakers are also laying off thousands of workers.

On Tuesday, GM disclosed that it had furloughed 163 UAW workers at its Toledo Propulsion Systems plant, responsible for manufacturing transmissions for GM's Missouri and Lansing Delta Township assembly plants, which are currently impacted by the strike. In total, GM has been compelled to lay off 2,100 workers at five facilities across four states. Stellantis, the parent organization encompassing Chrysler, Dodge, Jeep, and Ram, has furloughed approximately 370 employees.

On Monday, Ford furloughed 330 employees in Chicago and Lima, OH. This is in addition to the 600 layoffs that the company executed just last month at an assembly plant in Wayne, MI. Yesterday, Ford announced an additional round of layoffs affecting 400 employees in the Detroit area, per Automotive News. The auto biggie specified that approximately 350 workers at Livonia Transmission and 50 workers at Sterling Axle have been informed not to report to work starting Thursday. In total, Ford has now laid off a total of 1,330 employees due to the strike.

Demands & Proposals

The UAW’s list of demands is extensive, including a 36% pay increase over four years, annual cost-of-living adjustments, pension benefits for all employees, enhanced job security measures, constraints on the use of temporary workers and a transition to a four-day work week among others. They also call for the elimination of the two-tiered wage system, which was adopted post the 2008 financial crisis.

The automakers, while acknowledging workers' concerns, argue that the UAW’s demands could potentially hamper their competitiveness in the global market. They have expressed their willingness to negotiate further to resolve the issues at hand.

This week, Ford presented its seventh and most robust offer to the union aiming to resolve crucial economic matters. In this offer, Ford has outlined remarkable enhancements in terms of wages, positioning its employees among the top 25% in the United States, encompassing both hourly and salaried positions, while also providing substantial benefits, product commitments for all UAW factories, and a strong commitment to job security. Simultaneously, the proposal ensures Ford's capability to invest and expand its operations.

The offer includes a notable wage increase to $21 per hour, a significant 26% raise for temporary workers, and the conversion of all temporary employees with at least three months of service to permanent status upon ratification. However, the UAW is yet to respond to this latest proposition.

On Monday, after an 11-day interval, the union presented its first comprehensive counteroffer to GM. Additionally, the UAW engaged in a fresh round of negotiations with Stellantis.

The High Stakes of UAW Strike

As the deadlock prolongs, the repercussions are being felt deeply across the industry.

The strike cost the auto industry $3.9 billion in the first two weeks, according to an assessment by the Michigan-based consulting firm Anderson Economic Group. This financial toll encompasses $325 million in worker wages, $1.12 billion in losses incurred by the automakers, $1.29 billion for parts suppliers, and $1.2 billion in dealer and customer losses. Such a financial strain in an already competitive market puts a significant burden on the auto industry.

The ripple effects are being felt across the auto parts manufacturers. Nearly 30% of auto parts manufacturers surveyed by the Motor Equipment Manufacturers Association have reported laying off some employees. An additional 60% anticipate further layoffs by mid-October if the strikes persist.

In anticipation of a prolonged strike, GM has secured a new $6 billion line of credit extending through October 2024. This move is seen as a strategic step to ensure financial stability amid the uncertainty surrounding the strike’s resolution. GM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The industry awaits the UAW’s update on the negotiation status tomorrow, with the union either expanding the strike further (as it has done on the previous two Fridays) or announcing significant progress in the talks.

Conclusion

The UAW strike against the Detroit 3 automakers has evolved into a significant labor dispute with far-reaching implications for the industry and economy. As both sides stand their ground, the financial toll continues to mount, affecting not only automakers and workers but also parts suppliers and others in the automotive ecosystem.

Complex dynamics are at play as both parties navigate through the negotiations, striving to find a common ground amid contrasting economic and operational aspirations. The outcome of these negotiations will not only determine the fate of thousands of autoworkers but also shape the future of the American auto industry.

UAW strike leading to car parts shortage

Shaun Rabb
Fri, October 6, 2023 

FORT WORTH, Texas - Car dealers across Dallas-Fort Worth are feeling the impact of the United Auto Workers strike as they deal with a parts shortage.

UAW President Shawn Fain said on Friday that he started to call the Arlington GM plant to strike, but the automaker agreed to some concessions.

While the plant in Arlington is still running, dealerships say they are struggling to find much needed parts.

Jim Hardick, the general manager at Moritz Chevrolet in Fort Worth, says he's been talking to other dealers with the same problem.


"We're all affected, you know. Our daily parts orders, we're not getting those in," he said.

A week ago two North Texas parts distribution plants along with 18 others nationwide took to the picket line.

"We took these cars in the last couple of three days. We have a lot back in the back and those are all cars waiting on parts a lot of them," said Hardick. "We got customers that come in, their car is under warranty, and you need parts and a lot of these parts we're not able to get. So, you know, we park their cars until we get that part is in."

The strategic strike by UAW against the Big Three, GM, Ford and Stellantis, has caused more than 30 percent of parts suppliers to make some layoffs.

"If we see this continue in the manner it has already started in, we expect that over 60 percent of suppliers will have some form of layoffs occur by mid-October," said Julie Fream from MEMA, the Vehicle Suppliers Association.

Moritz's new vehicle inventory has not seen a drop since the strike started.

"Because we had a build up a little bit of inventory prior to the strike, but as we get deeper into it, yeah, and again it's going to be every dealer," Hardick said.



Once the strike is over Hardick says parts delivery will pick up again.

"Because I'm sure they would do things to try to expedite parts," he said.

Every day the strike goes on the backlog builds for vehicles needing repairs.

"We need that strike to end," Hardick said.

It is not just dealerships being impacted, after-market locations are having a hard time finding parts people need as well.

As for the strike, both sides are coming together, but have not reached a deal.


UAW Strike map: Here's where autoworkers have walked out
FOX 2 Staff
Fri, October 6, 2023 



DETROIT (FOX 2) - The UAW strike is in its third week with no end in sight and, on Friday, union President Shawn Fain is expected to announce more striking locations. But which of the Big Three will be targeted remains to be seen.

Fain called a 2 p.m. update which will be streamed live on social media and in the player at the top of this page.

The UAW called the update but said little else about the nature of the update. Around 4:45 p.m. on Thursday, Fain indicated that more locations could one strike while perhaps one could be spared. Fain posted a meme on X that featured an edited photo from The Bachelor that replaced faces with the names of General Motors, Ford, and Stellantis with the caption "'Tune into @UAW's Facebook page at 2pm on Friday, October 6th to see who gets the rose!"

UAW members have made it clear through picketing: They're not giving in. Their requests for higher pay and the end of tiers have rung out through the U.S. over the past three weeks as union President Shawn Fain's multi-pronged approach to slowly call on local union chapters to strike against Ford, GM, and Stellantis is starting to affect the big three.

So far, there are 43 facilities on strike across the country. These strikes been slowly rolled out starting on Sept. 15 as part of the UAW's ‘stand-up strike’ strategy. Rather than strike all 150,000 members at once, Fain and the UAW have slowly called on members to strike.

It started with three factories in Michigan, Missouri, and Ohio on the day the strike expired, at midnight on Sept. 15. Each company had a plant affected in the first strike.

A week later, the strike expanded to 38 facilities – all of which were either GM or Stellantis as Fain cited significant progress with Ford. However, a week after that, he announced strikes against Ford's Chicago Assembly plant and GM's Lansing Delta Assembly.

We're keeping track of every plant that's on strike with the map below. Click into each bubble to see which plants are on strike. News app users, if you can't see the map below, tap here.
Plants on strike
Michigan UAW plants striking

Pontiac Redistribution in Pontiac

Willow Run Redistribution in Belleville

Ypsilanti Processing Center in Ypsilanti

Davidson Rd. Processing Center in Burton

Flint Processing Center in Swartz Creek

Lansing Redistribution in Lansing

Stellantis Marysville

Centerline Packaging in Center Line

Centerline Warehouse in Center Line

Sherwood in Warren

Warren Parts in Warren

Wayne Local 900

QEC in Auburn Hills

Stellantis Romulus

GM Lansing Delta Assembly
California

Rancho Cucamonga Parts Distribution

Stellantis Los Angeles in Ontario
Colorado

Denver Parts Distribution

Stellantis Denver in Commerce City
Florida

Stellantis Orlando
Georgia

Stellantis Atlanta in morrow
Illinois

Chicago Parts Distribution

Stellantis Chicago in Naperville

Ford Chicago Assembly Plant
Massachusets

Stellantis Boston
Minnesota

Stellantis Minneapolis
Mississippi

Jackson Parts Dist.
Missouri

Wentzville GM plant
Nevada

Reno Parts Distribution
New York

Stellantis New York
North Carolina

Charlotte Parts Dist.
Ohio

Cincinnati Parts Dist. in Westchester

Stellantis Cleveland in Streetsboro

Local 12 in Toledo
Oregon

Stellantis Portland in Beaverton
Pennsylvania

Philadelphia Parts Dist.
Tennessee

Memphis AC Delco Parts Dist.
Texas

Fort Worth Parts Dist.

Stellantis Dallas
Virginia

Stellantis Winchester
West Virginia

Martinsburg Parts Dist.
Wisconsin

Hudson parts Distribution

Stellantis Milwaukee
Sluggish, confusing disaster relief programs aren't just a B.C. problem, experts say

Story by Rhianna Schmunk • CBC

For six months after losing her Newfoundland home to post-tropical storm Fiona last September, Peggy Savery spent most of her evenings hunched over a borrowed laptop in her niece's unfinished basement.

She deciphered application criteria and waded through mounds of paperwork to figure out whether she was eligible for money from the provincial government's financial aid program as a result of the storm.

At no point, she said, did anyone from the program contact her to guide her through the process.

"I wouldn't wish it on anybody," said Savery, now 60, whose home in Port aux Basques, N.L., was levelled by the storm.

"[The application] was a nightmare from start to finish."

Savery's experience applying for provincial financial aid rings true for many residents who live through natural disasters across Canada, experts say.



Peggy Savery, now 60, takes in the scene at the site of her old home in Channel-Port aux Basques in September. (Brianna Gosse/CBC)© Provided by cbc.ca

A watchdog report released in British Columbia this week said that the province's programs were outdated, under-resourced, inaccessible and poorly communicated at the time of extreme flooding and fires in 2021. Unclear and confusing communication, unreasonable delays and a lack of flexibility about how help was delivered left residents navigating an uphill battle at a time when they were already at the end of their emotional rope.

"That's not just a B.C. problem," said Blair Feltmate, head of the Intact Centre on Climate Adaptation at the University of Waterloo.

"You could take out B.C. and put pretty much any province's name in that report and it would work."
Programs unclear and slow, report says

The report in B.C. looked at two specific emergency assistance programs: Emergency Support Services and the Disaster Financial Assistance Program. The first gives families short-term support within 72 hours and the second provides money toward rebuilding for people who don't have enough insurance to cover their losses.

Ombudsperson Jay Chalke said the programs weren't designed to deal with the scale of modern-day extreme weather fuelled by climate change. The programs aren't staffed properly to provide quick help to the sheer number of evacuees and, even if they had enough workers, most people need help well beyond the three-day window.

The report said people who were Indigenous, elderly or living with disabilities had particular trouble managing applications.

Related video: 'One-size-fits-all' approach to emergency relief not working, ombudsperson says (cbc.ca)
Duration 2:18
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In his work, Feltmate has run two analyses ranking how prepared Canadian provinces are for extreme flooding, in particular. In the most recent, released in 2020, most provinces improved from the first study in 2016, but the country's average grade was set at a "C". (At B-, Yukon and Prince Edward Island had the highest score.)

"It's monumentally frustrating.… It does not seem to be that difficult to figure out, to develop a system that can increase efficiency, but we're simply not doing it," he said.

"For reasons that are beyond me, we don't seem to learn from one incident to the next."

The provincial government in B.C. accepted all 20 recommendations from the Ombudsperson's report.



Public Safety Minister Mike Farnworth addresses an emergency operations centre in Princeton, B.C., on Dec. 3, 2021, following devastating floods and mudslides in the area. (Jonathan Hayward/The Canadian Press)© Provided by cbc.ca


Help should be proactive, not reactive: experts

On the same day Chalke released his findings, the B.C. government introduced new disaster management legislation to deliver a modernized approach aligned with international best practices to ensure communities are safer and more resilient.

Emergency Management Minister Bowinn Ma said the legislation looks to update what constitutes an emergency to reflect current realities and risks, while providing better tools for response and recovery.

Feltmate and other experts said existing programs should be improved, but said governments need to spend more on prevention and mitigation. Studies, they said, have shown prevention to be a worthwhile investment with more severe weather in the forecast as a result of climate change.

"What we need to do in light of increasing risk of these extreme events is think about how to reduce the impact of these events on the communities moving forward in an anticipatory way," said Maryam Golnaraghi, director of Climate Change and Environment at the Geneva Association.

In 2019, Public Safety Canada estimated every dollar spent on mitigating future disasters could save roughly $6 in recovery costs down the road.

Canada launched its National Adaptation Strategy in June, with more than two dozen steps to mitigate the effects of extreme fire, flooding and heat. The plan has a goal to modernize the federal financial aid program by 2025 to improve recovery after large-scale disasters.

The plan also aims to create a national recovery strategy for resettling evacuees faster by 2028.

Insurance key piece of puzzle

Golnaraghi also said the industry has seen hesitancy about the idea of improving provincial programs out of concern people might be encouraged to skip insurance and cross their fingers for a government bailout when trouble comes.

She said governments need to support residents in getting proper insurance, particularly because those rates are linked to risk; as disasters become more common, insurance rates move further and further out of reach.

"In reality, the amount of funding that becomes available through government post-disaster aid funds will never meet the needs of the population if they don't have insurance," said Golnaraghi, who lives in Vancouver.

In Newfoundland, Savery and her family received several hundred thousand dollars in financial aid to go towards the construction of a new home this April – money that came as a surprise in the form of a lump-sum cheque sent by unregistered mail.

By then, Savery and her husband had purchased a home from a sympathetic builder who offered to sell them the house — at cost — after hearing their story.

"If not for them, I don't know what would have happened to us," Savery said.
Citing humanitarian crisis in Azerbaijan, Canadian Space Agency avoids international space congress

Story by Raffy Boudjikanian • CBC


The Canadian Space Agency did not participate in the 2023 International Astronautical Congress, citing concerns over a "humanitarian crisis" in the annual event's host country this year, Azerbaijan.

The move comes after Azerbaijan launched what it called an "anti-terror" operation, shelling and taking military control of the long-disputed enclave of Nagorno-Karabakh, prompting more than 100,000 ethnic Armenians to flee their homeland and take refuge in neighbouring Armenia.

"The Canadian Space Agency will continue to promote the peaceful and sustainable exploration of space for the benefit of humanity," the federal government agency said in a brief media statement.

"I think it's the right decision," Industry Minister François-Philippe Champagne told CBC News. "The Canadian Space Agency is an independent agency of government, but as the minister responsible, I can understand the choice they made."

"That's what we need to do as Canada."


Innovation, Science and Industry Minister Francois-Philippe Champagne speaks at at an event in Ottawa on Thursday. Champagne called the CSA's move to avoid an event in Azerbaijan over humanitarian concerns the right decision. (Sean Kilpatrick/The Canadian Press)© Provided by cbc.ca

The congress annually gathers some 6,000 participants, according to the International Astronautical Federation, to "offer everyone the latest space information and developments in academia and industry, networking opportunities, contacts and potential partnerships."

The Calgary-based specialized online publication SpaceQ first reported the CSA would not be participating this year. SpaceQ also reported it had spotted only a single participating official from the Canadian agency in the event's online program, but that person did not attend.

At its opening ceremony for the congress on Monday, Azerbaijan President Ilham Aliyev alluded to both the 2020 war between Azerbaijan and Armenia and Sept. 19's incursion.

"We used our right for self-defence," Aliyev said. "We fully restored our sovereignty over the country, all over the country."

The CSA's snub comes in the wake of international condemnation over Azerbaijan's military operation, from the governments of Canada, the U.S., France, Armenia and others.

On Thursday, the European Parliament voted overwhelmingly in favour of sanctions against Azerbaijan government officials in a non-binding resolution, over what it called a "pre-planned and unjustified military attack," adding "the current situation amounts to ethnic cleansing."

In a post on social media platform X, formerly Twitter, Canada's ambassador to the United Nations, Bob Rae, called the exodus "a complete failure of global diplomacy in the face of ethnic cleansing" last month.

Both the Bloc Québécois and NDP have asked the Canadian government to sanction Azerbaijan as well. Foreign Affairs Minister Mélanie Joly has said "everything is on the table," but has made no announcements on that front. The Canadian government said it did send $2.5 million in humanitarian aid for the growing refugee crisis in Armenia.



Armenian refugees wait in a square of Goris city centre on Sept. 29 before being evacuated to various Armenian cities, as the exodus from the Nagorno-Karabakh ethnic Armenian enclave continued unabated. (Alain Jocard/AFP/Getty Images)© Provided by cbc.ca

A hastily called mission of the United Nations into Nagorno-Karabakh last weekend found no traces of damage to civilian infrastructure, and no reports of civilians being harmed. But it also noted most residents had fled and it was limited in where it was allowed to go.


The attack on Sept. 19 also came after a nine-month blockade of food and medical supplies into Nagorno-Karabakh by Azerbaijan.

Many local journalists interviewed civilians who lost family in the bombings in September, and documented civilian infrastructure being damaged.

Before last month's attack, Armenia and Azerbaijan had fought over Nagorno-Karabakh twice since the fall of the Soviet Union. The region is internationally recognized as part of Azerbaijan but had a historically majority Armenian population.

Following a ceasefire agreement, the region's de-facto ethnic Armenian government, which installed itself decades ago but is not recognized by any country, said it would dissolve by the end of this year. Its defence forces gave up their weapons. The local authorities also reported at least 200 people were killed in the September attack.

Azerbaijan has said it wants to peacefully reintegrate Armenians who wish to return to Nagorno-Karabakh, and guarantee their rights. It has also arrested several officials of the de-facto government.

 

Mobile positioning-based population statistics make crisis management more effective


Peer-Reviewed Publication

ESTONIAN RESEARCH COUNCIL

Map of population 

IMAGE: 

ORANGE COLORS INDICATE THAT ANNUAL AVERAGE POPULATION PRESENCE BASED ON MOBILE POSITIONING DATA IS HIGHER THAN BASED ON POPULATION REGISTRY, WHEREAS PURPLE COLORS INDICATE THAT AVERAGE POPULATION PRESENCE IS LOWER. IN GREY AREAS MOBILE POSITIONING AND POPULATION REGISTRY SHOW SIMILAR POPULATIONS. AUTHOR: AGO TOMINGA

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CREDIT: AUTHOR: AGO TOMINGA




Human and economic losses inflicted by disasters are still growing in the world in spite of technological advances. A recent case study from Estonia shows that mobile positioning data can play a key role in improving the availability of emergency assistance, reducing the risk to human life and health in crisis situations.

Researchers from the University of Tartu together with private company Positium and the Estonian Rescue Board have developed a novel method for using mobile phone data to estimate the de facto population and population groups in potential disaster areas, and to assess population groups' spatio-temporal variation and vulnerability. Even though the case study is conducted on Estonian data, researchers are convinced that their methodology can be applied to other countries and regions, and that these findings can inform policymakers and emergency managers in planning and implementing disaster prevention and response measures more effectively.

Mobile positioning data has been used in both scientific and applied research in Estonia for more than 15 years. The mobile positioning data based on mobile network operators includes anonymized information about the location and time of mobile phone use. The location is based on the network antenna that provided the network signal the phone was connected to. Researchers have developed a methodology to identify how many local and temporary residents, workers, domestic and foreign tourists and random visitors there are in different places at different times. The methodology uses historical passive mobile positioning data to identify these population groups based on their mobility patterns.

Registry-based information is not enough in a crisis

Traditional, registry-based methods have limitations when it comes to tracking people's whereabouts during disasters. "Mobile positioning data can offer a timely solution that improves evacuation planning, resource allocation, and emergency communication, "said Ago Tominga, Junior Research Fellow of Human Geography at the University of Tartu and the leading author of the study.

The study showed that variability of within-area population presence is high, but can be well-explained by daily, weekly, seasonal and locational factors, as well as national-level cultural events. "The variability highlights the need to estimate the presence of the population more accurately over time and to include information on temporary populations as part of disaster management, "explained Tominga. People can become vulnerable in various ways based on their role: a local resident may be at risk of losing a house or having nowhere to go, whereas tourists and transit visitors may not be familiar with local context or information sources.

Study designed together with the rescue board

The study stands out among others in the field because rescue workers were involved already in the planning phase of the study to make sure that it answers their needs in the best way. According to Tominga, this helps to ensure that the application is validated based on scenarios displaying how crisis managers will actually use it. Moreover, having sufficient time to familiarize themselves with a new information source is of vital importance for rescuers in order to make quick decisions in an acute crisis.

The rescue workers involved in this research stated that dynamic information on population placement would help them fill information gaps in disaster preparation and response activities. Moreover, both authors and rescue workers agree that the early inclusion of emergency managers in the research and development process is one of the keys to the effective adoption of novel methodologies.

Similar methodologies and statistics for spatial and temporal distribution of distinct population groups are also useful in other areas where it is necessary to know where, when and which people are in certain places, e.g. in urban and regional planning or transport planning.

Now, the research group is looking more specifically at how mobile positioning-based population statistics can improve decision-making processes in crisis management in both national and international settings.

The study demonstrates the potential of using mobile phone data as a dynamic source of information for disaster risk reduction. The study was published in the International Journal of Disaster Risk Reduction.