UK

Spies working from home despite fears they could be hacked by foreign states


Thu, September 14, 2023

Spies illustration

Spies are working from home, the Government has admitted, despite fears that doing so could leave them vulnerable to hacking by foreign states.

Ministers have insisted that intelligence officials will be able to continue with flexible working, even though it means they cannot access classified material.

Downing Street suggested that would-be spooks are demanding the right to log in remotely and that it faces struggles to recruit for purely office-based roles.

The revelations come amid heightened fears over Chinese espionage after a parliamentary researcher was arrested on suspicion of spying for Beijing. He denies the allegations.

Senior Tory MPs urged ministers to insist that all intelligence personnel report to their desks, arguing that working from home was undermining their effectiveness.

It came as Rishi Sunak acknowledged that China has been trying to “headhunt” British officials within the security services and Armed Forces. In a toughening of his language, the Prime Minister said Beijing posed “modern-day threats” to the UK and vowed to be “clear-eyed” about the danger.

Flexible working for spies ‘here to stay’

His comments were in the Government’s response to a landmark report on China by Parliament’s powerful intelligence and security committee.

In their findings, published in July, the group of senior MPs warned that China has successfully penetrated every sector of the British economy.

They also criticised the growing work from home culture within the security services, suggesting that it was impacting on the effectiveness of Britain’s spies, and said the intelligence services’ responses to their inquiry had “slowed dramatically as a result” of staff being out of the office.

They also pointed out that many officials dialling in remotely do not have “continual access to classified systems” needed to fulfil their duties.

“The ‘new normal’ for some organisations means deadlines have been missed or responses have been sanitised to enable them to be sent from home,” said the MPs.

In its response, the Government defended flexible working among spies and insisted it was here to stay despite concerns.

“The intelligence community learned many important lessons about the benefits of hybrid working during the pandemic, and will continue to provide opportunities for staff to work from a wider range of locations where it is still possible for them to fulfil their roles,” ministers wrote.

“Much of the work involved with running such complex organisations can be done in a variety of ways, and providing flexibility allows relevant organisations to recruit and support a wide variety of staff and build a fully diverse and inclusive set of organisations.”

‘Spooks have become spectres’

Experts have previously warned that it would be “extremely easy” for foreign security services to hack into home broadband connections.

Conservative MPs reacted with dismay to the Government’s response, suggesting ministers did not understand the implications of their stance.

Sir Iain Duncan Smith, a former Tory leader, said: “In brutal terms, you could say productivity has fallen significantly. Can they work from other locations? Yes. Can they work effectively from them, or as effectively? No. The Government response is complacent.”

Sir Jacob Rees-Mogg, a former minister for Government efficiency, added: “The spooks have become spectres. The modern spy may eschew the James Bond image, but at least he did some work.”

In a statement, Mr Sunak assured MPs that he was “acutely aware of the particular threat to our open and democratic way of life” posed by China.

Number 10 acknowledged China has taken action that “crosses the line from influence into interference” by targeting officials with “sensitive knowledge and experience”.

It said Beijing had tried to recruit people from “government, military, industry and wider society” with lucrative job offers as part of a “prolific” spying operation.

But a former head of the Foreign Office suggested that Downing Street was overreacting in the wake of the arrest of the alleged spy in Westminster.

Lord McDonald said it was a “legitimate objective” for foreign powers to monitor Westminster, and Beijing should be subject to the same standards as allies such as the US and France.

Human rights groups send COP28 demands to UAE, governments

Updated Wed, September 13, 2023 

'Cop28 UAE' logo is displayed on the screen during the opening ceremony of Abu Dhabi Sustainability Week (ADSW) under the theme of 'United on Climate Action Toward COP28', in Abu Dhabi

By Emma Farge

GENEVA (Reuters) -More than 200 civil society groups have written to the United Arab Emirates (UAE), host of this year's COP28 U.N. climate summit, and all participating governments with a series of demands concerning the Gulf nation's human rights record.

The UAE, a Gulf trading and tourism hub, big oil producer and a U.S. ally, does not allow political parties and shows little tolerance towards dissent. State and local media are tightly controlled and freedom of speech is restricted.

The UAE rejected the groups' allegations and issued a statement saying that the Gulf Arab state welcomed constructive dialogue and that all COP28 visitors will be permitted to "assemble peacefully to have their voices heard in designated areas".

"The UAE is one of the most tolerant and diverse nations and the right to freedom from discrimination is protected by the UAE's constitution," the statement said.

Regional and global groups such as Amnesty International made seven demands in their letter, including calls to repeal laws that they said criminalise LGBTQ individuals and to free "prisoners of conscience" including those being held past their sentences. They also want pay reparations for migrant workers who helped to build the COP facilities and made a plea not to spy on summit delegates.

The COP28 conference hosts did not immediately respond to a request for comment.

The climate summit organised by the U.N. meets annually and its host countries rotate among member states. It is set to take place between Nov. 30 and Dec. 12 in Dubai and will be headed by Sultan Ahmed al-Jaber - a controversial pick since his country is an OPEC member and a major oil exporter.

While the UAE has pledged to allow peaceful protests, some NGOs say they will not attend the summit for fear of restrictions on their freedoms or even arrest while others are calling for a boycott.

"How can you have global climate negotiations in a country where peaceful critics and activists are behind bars?" said Sunjeev Bery, executive director for climate and human rights campaign organisation Freedom Forward, who coordinated the letter and is one of 218 signatories.

"Fossil fuel lobbyists and oil executives will be free to roam the halls, while climate and human rights activists will be busy worrying that their phones are hacked by the UAE's spies while wondering if they will be thrown behind bars if they speak too loudly."

He told Reuters his organisation would not attend, citing fear of arrest.

The UAE has previously said allegations of arbitrary detentions were false and unsubstantiated.

Recent global summits in the Middle East, such as the 2022 U.N. climate summit in Egypt and the men's soccer World Cup in Qatar, have also put host nations' rights records on issues such as labour and detainees under the microscope and have been used by activists as a way of pressuring countries to improve.

The New York Times reported that COP28 had raised concerns among officials about the UAE's image, citing a leaked recording of a meeting.

(Reporting by Emma FargeAdditional reporting by Maha El DahanEditing by Mark Potter and David Goodman)

15 Countries That Contribute The Most To Climate Change

Sana Ijaz
Fri, September 15, 2023

This article will look at which countries cause the most climate change owing to their industrial footprint. If you want to skip our overview of the trends in the renewable energy sector, head straight to 8 Countries That Contribute The Most To Climate Change.

Climate change primarily results from human activities that have significantly disrupted the natural balance of our environment. With industrial growth, there was a rise in energy consumption in countries that contribute the most to climate change, leading to significant emissions of greenhouse gases (GHGs) into the atmosphere. These gases trap heat, causing the greenhouse effect.

Another agonizing aspect of climate change is deforestation, as forests are carbon sinks and work as the planet’s lungs. According to the Global Forest Watch, there was a loss of 459 Mha (mega hectare) of tree cover globally between 2001-2022, equivalent to 195 GtCO₂ (gigaton) greenhouse gas emissions. 

This large-scale deforestation, whether for timber or to clear land for agriculture, deprives the Earth of its natural carbon filters and these harmful gases reach the ozone layer. Due to such practices, the planet's health is deteriorating, making climate change an urgent threat.

The UN states that GHG emissions are anticipated to increase the planet’s temperature by 1.5°C relative to pre-industrial levels by 2030, which is a critical threshold for Earth. Surpassing this threshold could mean rise in sea levels, more frequent and severe extreme weather events, and disruptions to ecosystems and human societies. 

While countries that care about the environment the most prioritize renewable energy sources to reduce climate impact, addressing the issue thoroughly requires the collective efforts of all stakeholders.

Shift Towards Renewables For A Sustainable Future

Growing concerns about climate change, coupled with technological advancements and economies of scale, have placed renewable energy at the forefront of the energy discourse in most major carbon-emitting nations. Countries that traditionally depended on fossil fuels are now turning to renewables to mitigate environmental issues. The International Energy Agency (IEA) projects that global investment in clean energy will amount to $1.7 trillion this year. Likewise, since EVs carbon footprint is smaller (its carbon footprint is indirect because of lithium mining and manufacturing) than conventional internal combustion engines (ICEs) as per the Environmental Protection Agency (EPA), the world's leading automakers plan to invest $1.2 trillion in EV development by 2030.

The proportion of renewable energy in global power generation is consistently increasing, with nations investing in such sources to lessen their reliance on coal, oil, and gas. According to the BP Statistical Review Of World Energy, renewables accounted for almost 13% of power generation in 2021, surpassing nuclear energy (9.8%).

However, despite the known environmental repercussions of coal burning, it remains a significant energy source in mega industries. The coal share in power generation increased from 35% to 36% in 2021, although this was still below its 2019 pre-pandemic level. Most of the Best Coal Mining Stocks to Buy consistently offer dividends and the coal market is expected to grow to a valuation of $658.68 billion by 2027, with a CAGR of 1.4%.

The cost of Solar PV has decreased dramatically, dropping more than 80% since 2010. This reduction has made solar power more accessible. For example, despite being a major carbon emitter due to its coal-based infrastructure, China tops the list of Countries That Produce the Most Solar Energy. Bloomberg notes that China was responsible for over half of the $358 billion invested in solar power in the first half of 2023, leading to an installed capacity of 392 GW, roughly a third of the worldwide total.

Wind power is another renewable source witnessing steady growth, with both onshore and offshore installations becoming more competitive compared to traditional power generation methods in countries with the highest greenhouse gas emissions. For instance, the United States has significantly increased its wind power capacity over the years, reaching 118 GW. The European Union, on the other hand, takes lead in offshore wind installations, particularly on the North Sea coasts of the United Kingdom, Denmark, and the Netherlands. 

Prominent electricity companies emphasizing renewables include NextEra Energy, Inc. (NYSE:NEE), First Solar Inc. (NASDAQ:FSLR) and Shell Plc (NYSE:SHEL). NextEra Energy, Inc. (NYSE:NEE) has a diverse renewable energy portfolio covering onshore wind and solar power projects in the US and Canada. In 2020, NextEra Energy, Inc. (NYSE:NEE) 's electricity generation capacity was 55 GW, with over 90% originating from clean or renewable sources.

NextEra Energy's Q2, 2023 earnings call highlighted that its clean energy subsidiary, NextEra Energy Resources (previously known as FPL), saw a 14% year-on-year growth in adjusted earnings for the quarter due to new investments. Energy Resources has experienced strong renewable energy demand, bringing 1,800 megawatts into commercial operations since Q1 2023.

Additionally, the subsidiary added 1,665 megawatts of new renewable and storage projects to the company's backlog. With NextEra Energy's backlog at 20 GW, the company is on course to double its renewable energy portfolio by 2026. NextEra Energy Resources reported a net income of approximately $1.152 billion or $0.57 per share for Q2 2023, marking an increase of $0.07 year-over-year. The company emphasized that solar power remains the most cost-effective option for its customers. This is evident from the 225 megawatts of low-cost solar integrated into the grid in Q2, 2023, raising the total solar additions to 1,200 megawatts. Having commissioned almost 1600 megawatts of new solar generation, the company aims to add about 3,100 megawatts of solar by 2025.

In First Solar Inc.'s (NASDAQ:FSLR) Q2 earnings call, it was announced that the company plans to invest $1.1 billion in the construction of a new, fully vertically integrated manufacturing facility in the US, which will be its fifth facility in the country. The company's recent acquisition of Evolar, a European leader in thin film perovskite and CIGS technology (Copper Indium Gallium Selenide, a semiconductor material used in thin-film solar cells), is set to fast-track its development of next-generation PV technology. By combining Evolar's expertise with First Solar Inc (NASDAQ:FSLR)'s R&D and proficiency in scaling thin film PV, it aims to introduce high-efficiency tandem devices.

Notably, at the end of 2022, Shell Plc (NYSE:SHEL) had 2.2 GW of renewable power in operation, with another 4.2 GW under development. Shell Plc (NYSE:SHEL) 's clean energy portfolio includes onshore & offshore wind farms, solar power plants, and biomass. When other stakeholders in power, transportation, and infrastructure sectors also switch to sustainable fuel alternatives, the climate damage can be significantly curtailed within the next few decades. 

Let's now discuss countries that contribute the most to climate change
.

15 Countries That Contribute The Most To Climate Change

Our Methodology 

We ranked countries that contribute the most to climate change based on their greenhouse gas emissions from the 1990s to 2020. To find these countries, we consulted the World Research Institute's Climate Watch Database, Carbon Monitor, and Carbon Brief, focusing on emissions data from 1990 to 2020. Additional sources included the Global Forest Watch, the Climate Risk Index, and the Environmental Performance Index. We then arranged the countries in ascending order based on their greenhouse gas emissions over the past three decades.

Note: The unit MtCO₂e stands for "megatons of carbon dioxide equivalent," a measure of greenhouse gas emissions. Simply put, 1 megaton (Mt) = 100,000 metric tons. 

Based on our findings, here are the major climate change contributors:

15. South Korea

Greenhouse Gas Emissions Between 1990-2020: 15305 megatons 

South Korea's carbon footprint largely results from emissions during vehicle production and usage, given its status as one of the world's top automobile manufacturers. Hyundai and Kia, industry giants, account for a significant portion of global vehicle sales and rank among the most profitable car companies in the world. Additionally, South Korea's reliance on coal-fired power plants worsens its greenhouse gas emissions; in 2019, coal was the source of approximately 40% of its electricity generation, becoming a primary source of its carbon emissions.

14. Democratic Republic Of Congo

Greenhouse Gas Emissions Between 1990-2020: 16062 megatons 

The Democratic Republic of the Congo (DRC) is rich in mineral resources, especially coltan and cobalt, crucial for electronics and electric vehicles. Intensive mining leads to deforestation and habitat loss, which, in turn, releases stored carbon and gives DR Congo a place among countries that produce the most carbon dioxide emissions. Moreover, illegal artisanal mining, often unregulated, intensifies environmental degradation, placing the DRC among countries that contribute the most to climate change. 

13. Mexico

Greenhouse Gas Emissions Between 1990-2020: 17660 megatons 

Mexico heavily depends on fossil fuels in its energy sector, with oil and gas contributing to over 50% of its primary energy supply. This dependence places Mexico among the major greenhouse gas emitters in Latin America. Although the country possesses vast renewable energy potential, barriers in investment and policy have hampered its transition, perpetuating its considerable carbon footprint.

12. Iran

Greenhouse Gas Emissions Between 1990-2020: 18756 megatons 

Iran, one of the top global oil producers, derives its influence from vast oil and natural gas reserves. Although sanctions have affected the country's exports, internal consumption for electricity and heating remains high, leading to substantial greenhouse gas emissions. Additionally, flaring, or burning off excess gas during oil extraction, emits large quantities of CO2 and methane, presenting a pressing environmental concern.

11. Australia

Greenhouse Gas Emissions Between 1990-2020: 18906 megatons 

Australia is among the world's leading coal exporters. Its heavy dependence on coal for both domestic electricity production and export makes it a substantial source of global greenhouse gas emissions. Currently, coal accounts for over 50% of Australia's electricity generation, overshadowing gas and oil. The nation's continued coal mining expansion, despite the global shift toward renewables, positions it among the top polluters. Additionally, intensified bushfires due to climate change release significant carbon, creating a feedback loop of environmental degradation.

10. United Kingdom

Greenhouse Gas Emissions Between 1990-2020: 19839 megatons 

The United Kingdom, the birthplace of the Industrial Revolution, historically relied heavily on coal for its energy production. This dependence resulted in a significant accumulation of greenhouse gas (GHG) emissions. Although the UK has made commendable progress in reducing its GHG emissions by swiftly transitioning to renewables, the environmental impact of its historical emissions persists. By 2019, the country had substantially decreased coal's role in its energy mix, but the long-lasting consequences of its coal-centric past remain evident.

9. Canada

Greenhouse Gas Emissions Between 1990-2020: 25494 megatons 

Given Canada's vast geography and frequently harsh climate, there is a high demand in the transportation and heating sectors, which add significantly to its GHG emissions. While Canada benefits from its abundant hydroelectric resources, it also maintains a vast oil sands industry in Alberta. Extracting from oil sands is notably energy-intensive, leading to higher carbon emissions than conventional oil drilling.

Click to continue reading 8 Countries That Contribute The Most To Climate Change.

Offshore wind: a blow to UK policy

The Week Staff
Thu, September 14, 2023 

Clouds gather over a UK wind farm

It can feel as if Britain isn't much good at anything any more, but when it comes to the offshore wind industry, this country is a true "global powerhouse", said Ben Marlow in The Daily Telegraph.

The UK's 44 offshore sites – made up of over 2,500 vast turbines up to 260 metres high – accounted for 27% of its electricity generation last year. In terms of installed capacity, Britain, with its long coastline, shallow sea beds and good wind speeds, is second only to China. But this leading position is now under threat, "thanks to the absolute shambles that was the latest auction for renewable contracts".

Seven projects were eligible, with potential to power an estimated eight million homes; but in the event, not a single bid was submitted, for the simple reason that the price cap for the auction was set too low, at £44/MWh in the 2012 prices that are used in such contracts. (This represents the maximum unit price the developers could bid to receive for the electricity they produce.) Given the soaring cost of everything from steel and labour to debt, that just wasn't feasible.

A real embarrassment

The botched auction is a real embarrassment for a government that has made offshore wind the backbone of its green energy policy, said Max Mitchell on Reaction. Ministers have committed to increasing the amount of electricity the grid receives from offshore sites from 14GW now to 50GW in 2030; and this is central to its target of decarbonising electricity production by 2035.

Even if a better deal can be agreed for the next auction, the zero bids represent a "significant setback" for that timeline. Ministers can't even say they weren't warned: the Swedish company Vattenfall recently cancelled work on a new windfarm off Norfolk, citing its 40% increased costs. Industry leaders had stressed before the auction that they'd need higher subsidies to offset the impact of inflation.

An inconvenient truth

We've been sold the idea that offshore wind energy is cheap and secure as well as green; but this debacle "highlights an inconvenient truth", said The Daily Telegraph: building the farms and getting the energy to the grid is very expensive, and reliant on subsidies (funded via energy bills). Consumers are entitled to ask if they're getting good value for money.

True, wind power is not cheap, but it is still cheaper than gas, said Will Dunn in The New Statesman, and likely to remain so for some years. And if voters baulk at the idea of foreign-owned operators receiving ever-larger subsidies, there are ways of assuaging this, said Nathalie Thomas in the FT. The firms could, for instance, be obliged to source more components in the UK. The bottom line, though, is that if it is to hit its renewables targets, the Government will have to move on price.

BMW to invest $750 million in UK plants to take Mini fully electric

Nick Carey
 Mon, September 11, 2023 

The MINI Concept Aceman is unveiled during an event at the Auto Shanghai show, in Shanghai

LONDON (Reuters) -BMW said on Monday it will invest 600 million pounds ($750 million) in its UK plants to take its Mini brand all-electric by 2030, giving a fresh boost to Britain's car industry after years of Brexit-related uncertainty.

From 2026, the German premium carmaker will make two electric models at its Mini plant in Oxford - the Mini Cooper 3-door and the compact crossover Mini Aceman.

The plant will make only electric models as of 2030 and many of those cars will be exported to markets around the world, BMW production chief Milan Nedeljkovic said.

Speaking to journalists in Oxford, Nedeljkovic said the company wants to use batteries made in Europe in the new models made in Oxford, but did not specify whether they would come from the UK, saying it depending on the attractiveness of the market for its suppliers.

The same two models will also be made in China and exports of those cars will begin in 2024.

Also speaking in Oxford, British business minister Kemi Badenoch said: "We want auto manufacturing not just to stay in the UK, but to be the best in the world, and this is part of that story".

Badenoch declined to comment on the level of subsidy to be received by BMW for Mini production, reported by British media to be 75 million pounds.

BMW will also invest in its plant in Swindon which makes parts for Mini models. It was too soon to say what would happen to the engine plant in Hams Hall, near Birmingham, Nedeljkovic said.

The small, fast and affordable original Mini went on sale in 1959 and has remained popular under BMW since it revived the brand in 2001, but its future in Britain has been uncertain for years, exacerbated by fears that Brexit would prompt the company to relocate production to Germany, China or elsewhere.

Still, the industry remains on edge with both Britain and Europe's carmakers calling for a delay in the implementation of post-Brexit "rules of origin", under which 45% of the value of an EV being sold in the European Union must come from Britain or the EU from 2024 to avoid tariffs.

"The [auto] industry is screaming at the EU," Badenoch said in Oxford, arguing that tariffs on EU and UK-made cars would only help Chinese manufacturers and that more time was needed to build local capacity.

($1 = 0.8023 pounds)

(Reporting by Alistair Smout, Nick Carey and Victoria Waldersee; Editing by Friederike Heine and David Holmes)

Unions call for one-day strike at Stellantis' Melfi plant in Italy over new models

Reuters
Fri, September 15, 2023

FILE PHOTO: A Stellantis sign at the entrance of the carmaker's factory in Hordain, France

MILAN (Reuters) -Unions called for a one-day strike at Stellantis' Melfi plant in southern Italy on Sept. 18 over lack of new details by the carmaker about its future production there, UILM, FIM-CISL, Fismic and Uglm said on Friday.

The Franco-Italian group in June said it planned to produce five new models in Melfi - where it employs more than 5,000 workers - with the fifth one "subject to performance improvement".

Unions said in a statement that Stellantis, in a meeting held on Friday, declined to give them updates on the fifth model and on which models it will assemble at the facility, pending talks with the Italian government over a wider deal.

Marco Lomio, the local head of UILM, said Melfi workers are called to an 8 hour strike on each of Monday's three scheduled shifts, with a total halt of the facility on that day.

-

The strike is not related to the ongoing action by United Auto Workers in the U.S. at three factories owned by General Motors, Ford Motor and Chrysler parent Stellantis.

Stellantis was not available for comment.

(Reporting by Giulio Piovaccari, editing Federico Maccioni and Louise Heavens)

How much does an average UAW autoworker make?




Khristopher J. Brooks
Thu, September 14, 2023 

When their existing labor contract expired at midnight Thursday, United Auto Workers began a strike against Detroit's Big Three automakers after being unable to navigate a major speed bump in what have been contentious negotiations: pay.

Ford, General Motors and Stellantis (formerly Fiat Chrysler) have spent weeks in talks with the UAW, mulling over details of a new labor contract that also has major implications for the U.S. automotive industry. UAW President Shawn Fain said members deserve hefty pay raises, emphasizing that the auto companies have brought in billions of dollars in profit and boosted CEO pay in recent years.

What is the average U.S. autoworker's wage?

In general, factory workers are not salaried, but receive an hourly wage. On average, U.S. autoworkers on manufacturing production lines earned about $28 an hour in August, up $1 from the previous year, according to data from the Bureau of Labor Statistics.

Individual auto workers' pay varies depending on their tenure at a car manufacturer. Under the industry's tiered wage system, more recent hires start at lower rates of pay than longer-tenured workers.

Top-tier workers — meaning anyone who joined the company in 2007 or earlier — make roughly $33 an hour on average, contract summaries for the Big Three show. Those hired after 2007 are part of the lower tier and earn up to $17 an hour based on a buildup of 6% annual raises under the last contract.

Unlike top-tier employees, lower-tier employees don't receive defined benefit pensions, and their health benefits are less generous. UAW members want the two-tiered pay system abolished, arguing that it reduces lower-tier coworkers to the equivalent of second-class citizens.

Adjusting for inflation, autoworkers have seen their average wages fall 19.3% since 2008, according to Adam Hersh, senior economist at the left-leaning Economic Policy Institute. That's because autoworker "concessions made following the 2008 auto industry crisis were never reinstated," Hersh said in a recent blog post, "including a suspension of cost-of-living adjustments."

How much money do the Big Three automaker CEOs make?

Ford CEO Jim Farley earned $21 million in total compensation last year, the Detroit News reported, while Stellantis CEO Carlos Tavares made $24.8 million, according to the Detroit Free Press. GM CEO Mary Barras tallied nearly $29 million in 2022 pay, Automotive News reported.

Overall CEO pay at the Big Three companies rose 40% from 2013 to 2022, according to EPI.

Barras makes 362 times more than the typical GM worker, while Tavares makes 365 times more, according to company filings with the Securities and Exchange Commission. Farley at Ford makes 281 times more, filings show.

UAW Chief Shawn Fain disrupts Detroit's labor tradition

Joseph White
Thu, September 14, 2023 

FILE PHOTO: United Auto Workers President Shawn Fain greets workers at Ford Motor Michigan Assembly Plant

(Reuters) - He's known to quote the Bible and Nation of Islam civil rights leader Malcolm X. He's a social media fanatic who keeps the pay stubs of his union member grandfather in his wallet. And now, Shawn Fain is representing nearly 150,000 auto workers in one of the biggest labor strikes in decades.

In taking action against all three Detroit carmakers, Fain, the head of the United Auto Workers, has remade the strategy of the union he leads, choosing a bolder, much riskier path than his predecessors after he won office by a narrow margin in a first-ever direct election earlier this year.

The strike started as the clock hit midnight on Friday, and followed Fain's decision to open negotiations with Ford Motor, General Motors and Stellantis simultaneously and eschew public niceties involving choreographed handshakes that famously kicked off previous negotiating efforts.

The strategy is not without risk. A weeks-long strike would hit workers who live paycheck to paycheck, while the Detroit Three automakers have billions in cash to withstand the walkout.

Fain, 54, has made creative use of social media, appearances on network and cable news programs and alliances with high-profile progressive politicians such as U.S. Senator Bernie Sanders, to reframe the UAW's contract bargaining as a battle to re-set the balance of power between workers and global corporations.

He has rebutted automakers' concerns about labor costs by pointing out that they have poured billions into share buybacks to benefit investors. "If they’ve got money for Wall Street they sure as hell have money for the workers making the product," he said. “We fight for the good of the entire working class and the poor."

In lengthy social media talks to UAW members, Fain alternates quoting Bible verses with the use of charts and graphs to dissect wage and benefit offers from the automakers - details his predecessors kept behind closed doors during bargaining crunch time.

Fain, in his unorthodox approach, ran what amounted to a public auction among the companies to push each one to top the other to avoid a costly walkout. Prior UAW presidents picked just one automaker to set a pattern for the other two.

Over and over, Fain has told UAW members at the Detroit Three that they can reverse 20 years of wage and retiree benefit concessions, stop further plant closures and end a seniority-based, tiered compensation system that pays new hires as much as 44% less than veteran workers.

"He's basically showing me who he is and where he comes from every time he presents himself. So, when he shows the plan, I can follow it. I understand that it’s a new way of going about things and I think he’s really shaking them up,” said Darwin Segers, 49, a UAW member who works at the Stellantis Mack Plant in Detroit.

Achieving any one of those goals in one bargaining round would be a significant achievement. UAW-Detroit Three contracts have tended toward incremental change, with worker gains offset by provisions that allowed the companies to drive costs down with automation and process efficiency.

Referring to Biblical scripture, Fain asked union members: "Are you willing to have faith and move that mountain? Nobody’s coming to save us."

Fain, whose grandfather was a UAW member, has escalated his rhetoric - and his stagecraft - since bargaining kicked off in July.

In one of his early Facebook Live videos, he delivered his message wearing a black T-shirt with a quotation from Malcolm X on the back. The Wednesday before contract expiration, he said UAW members must fight for a better contract "by any means necessary" - one of Malcolm X's most quoted phrases.

LONG-TERM TECHNOLOGY THREATS

The crucial test for Fain's strategy comes as the current contracts with the Detroit Three expire. In 2019, the union launched a strike against GM when the company refused to agree to a contract by the deadline. That six-week strike cost GM $3.6 billion and stressed the finances of UAW members.

The union has since beefed up its strike fund to $825 million, but the automakers have much more in cash and weeks of inventory they can run down.

"The UAW needs to be careful not to overplay their hand, as the balance sheets of The Detroit Three are flush with cash and they can probably wait things out longer than the workers can," wrote CFRA Research analyst Garrett Nelson.

Other unions, including Teamsters at delivery giant United Parcel Service and writers and actors in Hollywood, have also been emboldened, and some including UPS have won substantial raises. The actors and writers have been on strike for more than 100 days.

Like the Hollywood unions, the UAW members at the Detroit Three face threats from new technology that a richer contract will not resolve.

Company executives have said the UAW's demands will make them uncompetitive as the shift to EVs offsets the profits delivered by the combustion trucks UAW members build. Ford CEO Jim Farley went even further in a CNBC interview on the day of contract expiration: "You want us to choose bankruptcy over supporting our workers," he said.

Fain dismisses those warnings.

"They pretend the sky will fall if we get our fair share of the quarter of a trillion dollars the Big Three have made over the past decade," Fain said. "It’s the billionaire economy - that's what they are worried about."

(Reporting by Joe White and Ben Klayman in Detroit; additional reporting by Eric Cox in Detroit, Bianca Flowers in Chicago and David Shepardson in Washington; editing by Matthew Lewis and Diane Craft)

'We're not asking to be millionaires': workers strike at US car giants

Car workers have launched a series of strikes after their union failed to reach agreement on a new contract with the three largest US vehicle manufacturers, kicking off the country's most ambitious industrial action in decades.

‘Biggest auto strike in generations’ is here – but why is it happening?

Michael Sainato
Fri, September 15, 2023 

Photograph: Jeremy Wadsworth/AP

Industrial action billed as “the biggest auto strike in generations” got under way late on Thursday night for 150,000 US autoworkers, with employees at Ford, Stellantis and General Motors walking off the job at 11.59pm after contract negotiations failed to reach a deal.

Related: The United Auto Workers may soon strike. Every American should support them | Bernie Sanders

It’s the latest in a series of strikes called or threatened by workers in industries including shipping and logistics, TV and movie production and hotel and leisure. Given its scale, the strike could deal a significant blow to the US economy as well as the auto industry.

Why is it happening?

The United Auto Workers union says workers have never been fully compensated for the sacrifices they made after the 2008-09 financial crisis, when they agreed to a raft of cuts to save the industry. The carmakers received huge bailouts and soon returned to record profits.

Workers are pushing for at least a 40% wage increase over four years in a new contract; an end to two-tier wage systems in which new hires are paid significantly less for doing the same work; an increase to benefits for retirees and return of a defined pension instead of a 401k; reinstatement of cost-of-living adjustment raises; a 32-hour working week; job security protections; and protections for workers affected by plant closures.

Who’s leading the charge?

The UAW president, Shawn Fain, was elected to head the union as part of a reform campaign within its ranks, aimed at taking a more aggressive approach towards bargaining after workers had accepted concessions amid bankruptcies during the 2008 economic recession. Workers have yet to regain those concessions, or a share in the $250bn profits the big three automakers have raked in over the past decade.

How did the strike begin?

In late August, the UAW announced members voted about 97% in favor of the strike authorization. The union has never gone on strike at the big three automakers simultaneously.

A minute before midnight on Thursday, after their contracts expired, UAW members walked out at three assembly plants in Michigan, Missouri and Ohio. The union said that about 13,000 workers were affected.

The Detroit Free Press reported that the Stellantis complex in Toledo, Ohio, erupted in cheering and honking of horns as the strike began.

When did the UAW last strike?

Workers at General Motors last went on strike in 2019. It lasted 40 days and cost the carmaker $3.6bn. In 2019, contracts were reached with Fiat-Chrysler, now Stellantis, and Ford without a strike occurring.

What happened to talks?

Talks are going on, “in good faith”, General Motors chief executive Mary Barra said on Friday morning. But management and workers failed to reach an agreement by the midnight deadline when current contracts expired and so the strike began. Fain has previously posted video updates on negotiations in which he has thrown copies of proposals from the automakers in the bin, criticizing the companies’ offers.

In the UAW’s most recent negotiation update, Fain criticized the counteroffers from Ford, Stellantis and GM, saying they keep in place two-tiered wages for workers; rejected their retirement and pension proposals; called wage proposals from Ford and GM “shameful and insulting”; and characterized Stellantis’s offer as “deeply inadequate”. The union has called for significant wage increases that reflect the salary increases of the companies’ CEOs.

“It doesn’t make up for inflation, it doesn’t make up for decades of falling wages and it doesn’t reflect the massive profits we generated for this company,” said Fain.

The automakers have criticized the union’s proposals and claimed they are not “feasible”.

How serious could it get?

In the first instance, the UAW planned “standup” strikes aimed at individual auto plants, with members from three plants walking out overnight after talks failed.

Under this strategy, a strike flares without warning at targeted, individual plants. Then additional locations follow – ramping up the pressure on the companies. UAW says as time goes on, more locals may be called on to join the strike.

“This gives us maximum leverage and maximum flexibility in our fight to win a fair contract at each of the big three automakers.” The option to strike across all facilities is “still on the table”.

What are the costs?

The automotive industry contributes about 3-3.5% of the US gross domestic product (GDP), the broadest measure of the economy.

Vehicle supply – just recovering from pandemic shortages – would be hit hard. A month-long strike at the three automakers could cut output by as many as 500,000 vehicles, according to Sam Fiorani, vice-president of global vehicle forecasting for AutoForecast Solutions.

Ten-day strikes at all three automakers could cost manufacturers, workers, suppliers and dealers more than $5bn, according to economic consulting firm Anderson Economic Group.

Is the White House getting involved?

Biden appeared to support the strikers when he spoke at a press briefing hours after the strike began on Friday. The president said in his White House address: “Record corporate profits … should be shared by record contracts for the UAW.”

He also expressed regret that the strike had not been averted but urged both parties to return to the negotiating table. “No one wants a strike but I respect workers’ rights to use their options under the collective bargaining system and understand their frustrations,” Biden said.

“I do appreciate that the parties have been working around the clock. It is my hope that the parties can return to the negotiating table to forge a win-win agreement.”

His comments came after business groups had been pushing the White House to intervene to avert a strike. Hours after the strike began, the president also reportedly said he would send aides to Detroit to mediate.