Boeing furloughs thousands as it hunkers down for extended strike

Boeing furloughs thousands as it hunkers down for extended strike
Striking Boeing workers and their supporters picket outside the Boeing Co. manufacturing facility in Renton, Washington on September 16, 2024. (AFP)
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Updated 19 September 2024
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Boeing furloughs thousands as it hunkers down for extended strike

Boeing furloughs thousands as it hunkers down for extended strike
  • The extensive furloughs show the company is preparing to weather a prolonged strike that is not likely to be easily resolved
  • A protracted labor battle could cost Boeing several billion dollars, further straining finances and threatening its credit rating
  • The strike has halted production of Boeing’s best-selling 737 MAX jets, along with its 777 and 767 widebody aircraft, delaying deliveries to airlines

Boeing said on Wednesday it will temporarily furlough tens of thousands of employees after about 30,000 machinists went on strike on Friday, halting production of its 737 MAX and other airplanes.
“We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees,” CEO Kelly Ortberg said in an email to employees. “We are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike.”
Ortberg also said he and other Boeing leaders “will take a commensurate pay reduction for the duration of the strike.”
The extensive furloughs show Ortberg is preparing the company to weather a prolonged strike that is not likely to be easily resolved given the anger among rank-and-file workers.
The strike, Boeing’s first since 2008, adds to a tumultuous year for the planemaker which began when a door panel blew off a new 737 MAX jet in mid-air in January.
A protracted labor battle could cost Boeing several billion dollars, further straining finances and threatening its credit rating, analysts said.
“It’s unlikely that the cuts will fully offset the costs of a prolonged strike,” said Ben Tsocanos, aerospace director at S&P Global Ratings.
Boeing and the International Association of Machinists and Aerospace Workers (IAM) are talking in the presence of federal mediators. The union said Tuesday it was frustrated with the first day of mediation, which it said Boeing was not taking seriously.
The union has been pushing for a 40 percent raise over four years in its first full contract negotiations with Boeing in 16 years, well above the planemaker’s offer of 25 percent, which was resoundingly rejected.
Brian Bryant, the IAM’s international president, said actions like furloughs and the cutback in salaries amounted to “smoke and mirrors,” given earlier company spending on bonuses and compensation for top executives.
“This is just part of their plan to make it look like they’re trying to save money,” added Bryant who was in the Seattle area picketing on Wednesday with the “resilient” membership.
“The ball is in Boeing’s court. They could settle this strike tomorrow,” Bryant said, adding it would take fair pay, pension, restoring a bonus and health insurance.
In the email to employees, Ortberg said the company would not take any “actions that inhibit our ability to fully recover in the future. All activities critical to our safety, quality, customer support and key certification programs will be prioritized and continue, including 787 production.”
The company employs about 150,000 people in the United States. It is unclear exactly which employees are affected by the furloughs. A union representing Boeing’s engineers said their members were not affected.
The strike, now six days old, also carries risks for the company’s vast network of suppliers, some of whom are also considering furloughs, several told Reuters.
“Certainly suppliers are worried,” said Nikki Malcom, CEO of the Pacific Northwest Aerospace Alliance. “It’s going to have a significant impact on suppliers if it goes on a long time.”
Production halts
The strike has halted production of Boeing’s best-selling 737 MAX jets, along with its 777 and 767 widebody aircraft, delaying deliveries to airlines.
Boeing said on Monday it was freezing hiring to cut costs as its balance sheet is already burdened with $60 billion of debt.
The company has also stopped placing most orders for parts for all Boeing jet programs except the 787 Dreamliner, in a move that will hurt its suppliers.
One senior supplier dismissed the latest announcement as “panic mode” and said it underscored Boeing’s lack of room to maneuver due to its already-strained balance sheet.
“They would be better to settle; they are getting very near the precipice,” said the supplier, who asked not to be named.
Boeing shares have fallen about 40 percent so far this year.


California spearheads new ‘resistance’ to Trump's plans of mass deportation, environmental protection rollback

California spearheads new ‘resistance’ to Trump's plans of mass deportation, environmental protection rollback
Updated 5 sec ago
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California spearheads new ‘resistance’ to Trump's plans of mass deportation, environmental protection rollback

California spearheads new ‘resistance’ to Trump's plans of mass deportation, environmental protection rollback
  • Trump’s sweeping election victory this week came off the back of promises to swiftly expel millions of illegal immigrants and roll back nationwide environmental protections
  • But under the US constitution, states wield significant power and any such moves will certainly be met with lawsuits

LOS ANGELES: California is spearheading a new resistance to the incoming Donald Trump administration that will test the power of Democratic states to battle mass deportation, defend reproductive rights and combat climate change.
Trump’s sweeping election victory this week came off the back of promises to swiftly expel millions of illegal immigrants and roll back nationwide environmental protections. Critics fear his allies could move to restrict access to abortion medication.
But under the US constitution, states wield significant power and any such moves will certainly be met with lawsuits.
California’s top prosecutor stood in front of San Francisco’s Golden Gate Bridge this week and vowed to “take on the challenges of a second Trump Administration — together.”
“We lived through Trump 1.0. We know what he’s capable of,” said California Attorney General Rob Bonta.
“We’ll continue to be a check on overreach and push back on abuse of power,” he promised.
Governors and attorneys general of other liberal states including New York, Illinois, Oregon and Washington have made similar proclamations.
“If you try to harm New Yorkers or roll back their rights, I will fight you every step of the way,” Governor Kathy Hochul vowed.
“You come for my people, you come through me,” Illinois Governor J.B. Pritzker said, as Democratic prosecutors across the nation coordinate their strategies.
The pre-emptive maneuvers have swiftly drawn the ire of Trump, who singled out California Governor Gavin Newsom in an angry social media riposte Friday.
“He is using the term ‘Trump-Proof’ as a way of stopping all of the GREAT things that can be done to ‘Make California Great Again,’ but I just overwhelmingly won the Election,” complained Trump.

Hindrance by litigation
State plans to disrupt his agenda will bring an unwelcome sense of deja vu for Trump, whose efforts to rescind Barack Obama’s immigration and health care policies during his first term were repeatedly stymied in court.
During the last Trump administration, California alone sued over 100 times in a variety of areas, slowing down or restricting its policies. Republican states echoed that strategy under Joe Biden’s administration.
“It was as successful as you can get,” said Julian Zelezer, professor of political history at Princeton University.
“States, especially a state as large as California, do have the power to resist some of the changes that will come from the administration, to uphold emissions regulations and other laws, including on reproductive rights.”
A benefit of litigation is that “cases move about as fast as snails,” said Kevin Johnson, a law professor at University of California, Davis.
“Some cases go around the lower courts, and by the time they hit the Supreme Court, there’s a new president,” he told AFP.

“Sanctuary states”
Immigration is expected to be a flashpoint in the looming battle.
Republican states may cooperate with the Trump administration in identifying and detaining undocumented people. But Democratic states are likely to refuse.
During Trump’s previous term California was the first to declare itself a “sanctuary state,” prohibiting local law enforcement from working with federal agents to arrest illegal immigrants.
Trump could withhold federal funding to certain states as a means of exerting pressure.
He has also floated more radical measures, including massively expanding a process called “expedited removal” to evict undocumented people without court hearings, or even using the military to arrest suspected illegal immigrants.
But “there would almost immediately be a request for a preliminary injunction,” predicted Johnson.
“If you send the military on the border” to detain or deport immigrants, “it is unprecedented in all kinds of ways, and it raises all kinds of issues.”

“As California goes, so goes the nation”
One downside for states is the enormous financial cost of countless legal battles.
“State budgets are tight, and so that money has to come from somewhere else,” said Zelezer.
With Trump having won the popular vote and increased his vote share even in most liberal states, “politically, it might be a little harder as they try to move forward with doing this again,” he said.
Still, California’s leaders’ zeal in opposing Trump appeared undaunted.
“As is so often said, as California goes, so goes the nation,” said Bonta.
“In the days and months and years to come, all eyes will look west.”


Germany marks 1989 Berlin Wall fall with ‘Preserve Freedom’ party

Germany marks 1989 Berlin Wall fall with ‘Preserve Freedom’ party
Updated 11 min 28 sec ago
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Germany marks 1989 Berlin Wall fall with ‘Preserve Freedom’ party

Germany marks 1989 Berlin Wall fall with ‘Preserve Freedom’ party

BERLIN: Germany marks 35 years since the Berlin Wall fell with festivities from Saturday under the theme “Preserve Freedom!” as Russia’s war rages in Ukraine and many fear democracy is under attack.
Chancellor Olaf Scholz — whose coalition dramatically collapsed this week — said in a message to the nation that the liberal ideals of 1989 “are not something we can take for granted.”
“A look at our history and at the world around us shows this,” added Scholz, whose three-party ruling alliance imploded on the day Donald Trump was reelected, plunging Germany into political turmoil and toward new elections.
November 9, 1989 is celebrated as the day East Germany’s dictatorship opened the borders to the West after months of peaceful mass protests, paving the way for German reunification and the collapse of Soviet communism.
One Berliner who remembers those momentous events, retiree Jutta Krueger, 75, said about the political crisis hitting just ahead of the anniversary weekend: “It’s a shame that it’s coinciding like this now.”
“But we should still really celebrate the fall of the Wall,” she said, hailing it as the moment East Germans could travel and “freedom had arrived throughout Germany.”
President Frank-Walter Steinmeier will kick off events on Saturday at the Berlin Wall Memorial, honoring the at least 140 people killed trying to flee the Moscow-backed German Democratic Republic (GDR) during the Cold War.
In the evening, a “freedom party” with a music and light show will be held at Berlin’s iconic Brandenburg Gate, on the former path of the concrete barrier that had cut the city in two since 1961.
On Sunday, the Russian protest punk band Pussy Riot will perform in front of the former headquarters of the Stasi, former East Germany’s feared secret police.
Pro-democracy activists from around the world have been invited for the commemorations — among them Belarusian opposition leader Svetlana Tikhanovskaya and Iranian dissident Masih Alinejad.
Talks, performances and a large-scale open-air art exhibition will also mark what culture minister Claudia Roth called “one of the most joyous moments in world history.”
Replica placards from the 1989 protests will be on display along four kilometers of the Wall’s route, past the historic Reichstag building and the famous Checkpoint Charlie.
Also among the art installations will be thousands of images created by citizens on the theme of “freedom,” to drive home the enduring relevance of the historical event.
Berlin’s top cultural affairs official Joe Chialo said the theme was crucial “at a time when we are confronted by rising populism, disinformation and social division.”
Axel Klausmeier, head of the Berlin Wall foundation, said the values of the 1989 protests “are the power-bank for the defense of our democracy, which today is being gnawed at from the left and the right.”
Most East Germans are grateful the GDR regime ended but many also have unhappy memories of the perceived arrogance of West Germans, and resentment lingers about a remaining gap in incomes and pensions.
These sentiments have been cited to explain the strong support for the far-right Alternative for Germany (AfD) in eastern Germany, as well as for the Russia-friendly and anti-capitalist BSW.
Strong gains for both at three state elections in the east in September highlighted the enduring political divisions between eastern and western Germany over three decades since reunification.
While the troubled government led by Scholz’s Social Democrats and the opposition CDU strongly supports Ukraine’s fightback against Russia, the anti-establishment AfD and BSW oppose it.
The AfD, which rails against immigration, was embarrassed this week when several of its members were arrested as suspected members of a racist paramilitary group that had practiced urban warfare drills.
On the eve of the anniversary of the Berlin Wall’s fall, government spokeswoman Christiane Hoffmann recalled that the weekend will also mark another, far darker chapter in German history.
During the Nazis’ Kristallnacht or Night of Broken Glass pogrom of November 9-10, 1938, at least 90 Jews were murdered, countless properties destroyed and 1,400 synagogues torched in Germany and Austria.
Hoffmann said that “it is very important for our society to remember the victims... and learn the correct lessons from those events for our conduct today.”


UK government appoints former Blair negotiator Jonathan Powell as national security adviser

UK government appoints former Blair negotiator Jonathan Powell as national security adviser
Updated 09 November 2024
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UK government appoints former Blair negotiator Jonathan Powell as national security adviser

UK government appoints former Blair negotiator Jonathan Powell as national security adviser
  • Powell, who was chief of staff to former PM Tony Blair from 1997 to 2007, was an architect of the Northern Ireland peace process
  • He faced criticism for his part in the UK’s decision to participate in the 2003 US-led invasion of Iraq

LONDON: The UK’s Labour government has appointed Jonathan Powell, an architect of the Northern Ireland peace process, as its new national security adviser.

Powell, who served as chief of staff to former Labour Prime Minister Tony Blair for a decade between 1997 and 2007, was deeply involved in the UK’s decision to participate in the 2003 US-led invasion of Iraq.

In 2014, Conservative Prime Minister David Cameron appointed him the UK’s special envoy to Libya, in an attempt to promote dialogue between rival factions embroiled in the nation’s civil war.

Many political figures in the UK welcomed Powell’s latest appointment at a time of escalating international conflicts. Some expressed hopes that he will be able to help British authorities forge a positive relationship with Donald Trump when he takes over as US president in January.

However, Powell faced criticism for his role in the UK government’s decision to join the invasion of Iraq two decades ago, and for later promoting the need to engage in dialogue with extremist groups. In 2014, at the height of Daesh’s bloody occupation of large swaths of Iraq and Syria, he argued that UK authorities should open channels of communication with them.

Prime Minister Keir Starmer said Powell’s experience of negotiating the Northern Ireland peace agreement and his other work related to some of the world’s most complex conflicts make him “uniquely qualified to advise the government on tackling the challenges ahead, and engage with counterparts across the globe to protect and advance UK interests.”

Powell said he was honored to be given the role at a time when “national security, international relations and domestic policies are so interconnected.”


Trump’s shunning of transition planning may have severe consequences, governance group says

Trump’s shunning of transition planning may have severe consequences, governance group says
Updated 09 November 2024
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Trump’s shunning of transition planning may have severe consequences, governance group says

Trump’s shunning of transition planning may have severe consequences, governance group says
  • Trump's transition team have yet to sign agreements required by the Presidential Transition Act, which mandates that the president-elect’s team agree to an ethics plan and to limit and disclose private donations
  • The delay is holding up the federal government’s ability to begin processing security clearances for potentially hundreds of Trump administration national security appointees

WASHINGTON: A good-governance group is warning of severe consequences if President-elect Donald Trump continues to steer clear of formal transition planning with the Biden administration — inaction that it says is already limiting the federal government’s ability to provide security clearances and briefings to the incoming administration.
Without the planning, says Max Stier, president and CEO of the nonprofit Partnership for Public Service, “it would not be possible” to “be ready to govern on day one.”
The president-elect’s transition is being led by Cantor Fitzgerald CEO Howard Lutnick and Linda McMahon, the former wrestling executive who led the Small Business Administration during Trump’s first term. They said last month that they expected to sign agreements beginning the formal transition process with the Biden White House and the General Services Administration, which acts essentially as the federal government’s landlord.
But those agreements are still unsigned, and the pressure is beginning to mount.
The delay is holding up the federal government’s ability to begin processing security clearances for potentially hundreds of Trump administration national security appointees. That could limit the staff who could work on sensitive information by Inauguration Day on Jan. 20.
It also means Trump appointees can’t yet access federal facilities, documents and personnel to prepare for taking office.
The agreements are required by the Presidential Transition Act, which was enacted in 2022. They mandate that the president-elect’s team agree to an ethics plan and to limit and disclose private donations.
In that act, Congress set deadlines of Sept. 1 for the GSA agreement and Oct. 1 for the White House agreement, in an effort to ensure that incoming administrations are prepared to govern when they enter office. Both deadlines have long since come and gone.
Stier, whose organization works with candidates and incumbents on transitions, said on a call with reporters on Friday that a new administration “walks in with the responsibility of taking over the most complex operation on the planet.”
“In order to do that effectively, they absolutely need to have done a lot of prework,” he said, adding that Trump’s team “has approached this in a, frankly, different way than any other prior transition has.”
“They have, up until now, walked past all of the tradition and, we believe, vital agreements with the federal government,” Stier said.
In a statement this week, Lutnick and McMahon said Trump was “selecting personnel to serve our nation under his leadership and enact policies that make the life of Americans affordable, safe, and secure.” They didn’t mention signing agreements to begin the transition.
A person familiar with the matter said that the congressionally mandated ethics disclosures and contribution limits were factors in the hesitance to sign the agreements.
Trump transition spokesperson Brian Hughes said Friday that the team’s “lawyers continue to constructively engage with the Biden-Harris Administration lawyers regarding all agreements contemplated by the Presidential Transition Act.”
“We will update you once a decision is made,” Hughes said.
The Trump team’s reluctance has persisted despite Biden’s White House chief of staff, Jeff Zients, reaching out to Lutnick and McMahon to reiterate the important role the agreements with the Biden administration and GSA play in beginning a presidential transition.
“We’re here to assist. We want to have a peaceful transition of power,” said White House press secretary Karine Jean-Pierre. “We want to make sure they have what they need.”
The unorthodox approach to the presidential transition process recalls the period immediately after Trump’s Election Day victory in 2016. Days later, the president-elect fired the head of his transition team, former New Jersey Gov. Chris Christie, and tossed out a transition playbook he’d been compiling.
But Stier said that, even then, Trump’s team had signed the initial agreements that allowed the transition to get started — something that hasn’t happened this time.
“The story’s not finished. But they’re late,” he said. “And even if they manage to get these agreements in now, they’re late in getting those done.”


50 countries warn UN of ransomware attacks on hospitals

50 countries warn UN of ransomware attacks on hospitals
Updated 09 November 2024
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50 countries warn UN of ransomware attacks on hospitals

50 countries warn UN of ransomware attacks on hospitals
  • The statement also condemned nations which “knowingly” allow those responsible for ransomware attacks to operate from

UN: The World Health Organization and some 50 countries issued a warning Friday at the United Nations about the rise of ransomware attacks against hospitals, with the United States specifically blaming Russia.
Ransomware is a type of digital blackmail in which hackers encrypt the data of victims — individuals, companies or institutions — and demand money as a “ransom” in order to restore it.
Such attacks on hospitals “can be issues of life and death,” according to WHO head Tedros Adhanom Ghebreyesus, who addressed the UN Security Council during a meeting Friday called by the United States.
“Surveys have shown that attacks on the health care sector have increased in both scale and frequency,” Ghebreyesus said, emphasizing the importance of international cooperation to combat them.
“Cybercrime, including ransomware, poses a serious threat to international security,” he added, calling on the Security Council to consider it as such.
A joint statement co-signed by over 50 countries — including South Korea, Ukraine, Japan, Argentina, France, Germany and the United Kingdom — offered a similar warning.
“These attacks pose direct threats to public safety and endanger human lives by delaying critical health care services, cause significant economic harm, and can pose a threat to international peace and security,” read the statement, shared by US Deputy National Security Adviser Anne Neuberger.
The statement also condemned nations which “knowingly” allow those responsible for ransomware attacks to operate from.
At the meeting, Neuberger directly called out Moscow, saying: “Some states — most notably Russia — continue to allow ransomware actors to operate from their territory with impunity.”
France and South Korea also pointed the finger at North Korea.
Russia defended itself by claiming the Security Council was not the appropriate forum to address cybercrime.
“We believe that today’s meeting can hardly be deemed a reasonable use of the Council’s time and resources,” said Russian ambassador Vassili Nebenzia.
“If our Western colleagues wish to discuss the security of health care facilities,” he continued, “they should agree in the Security Council upon specific steps to stop the horrific... attacks by Israel on hospitals in the Gaza Strip.”