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Tesla Sued by California Over ‘Rampant Racism’ at Factory

(Bloomberg) — California’s civil rights regulator sued Tesla Inc. for racial discrimination and harassment after finding a widespread pattern of mistreatment of Black workers at the electric car-maker’s factory near San Francisco. 

During a three-year investigation, the state’s Department of Fair Employment and Housing said it received complaints from hundreds of workers and found evidence that Tesla’s Fremont plant is a “racially segregated workplace.” 

“Segregation at the Fremont factory, along with the absence of Black and/or African Americans in leadership roles, has left many complaints of rampant racism unchecked for years,” according to the complaint that became public Thursday after it was filed the day before in Alameda County Superior Court. “As early as 2012, Black and/or African American Tesla workers have complained that Tesla production leads, supervisors, and managers constantly use the n-word and other racial slurs to refer to Black workers.”

Tesla said in a Feb. 8 blog post titled “The DFEH’s Misguided Lawsuit” — before the complaint was filed — that the company “will be asking the court to pause the case and take other steps to ensure that facts and evidence will be heard.”

The agency said it tried to work with Tesla to avoid litigation but the company walked away from mediation. 

The DFEH said one Black worker told of hearing racial slurs as often as 50 to 100 times a day. Some who complained about the offensive language said supervisors and managers were active participants in the abuse or witnesses to it. On a daily basis, Black workers saw racist graffiti on restroom walls, lockers, benches, work stations, lunch tables and the break room, according to the complaint.

The agency is the state-level equivalent of the better-known U.S. Equal Employment Opportunity Commission, with a mission to protect Californians from unlawful discrimination in employment, housing and accommodations. The DFEH informed Tesla on Jan. 3 that it had grounds to file a complaint. Tesla disclosed the agency’s investigation in the annual report it filed to the U.S. Securities and Exchange Commission on Feb. 7. 

The automaker’s shares fell 3% Thursday to $904.55 in New York. The stock was little changed in aftermarket trading.

Numerous Complaints

Tesla has more than 99,000 employees globally, and the factory in Fremont employs more than 10,000 people. The car company headed by chief executive officer Elon Musk moved its corporate headquarters from Palo Alto, California, to Austin, Texas, last year.

Tesla has faced numerous complaints and lawsuits from former workers at its Fremont plant about racial discrimination and sexual harassment in recent years. Many complaints never make it to court because Tesla’s full-time employees sign agreements requiring workplace disputes to be handled in closed-door arbitration.

“The tone is set at the top,” said Kristin Hull, the founder and chief executive of Nia Impact Capital, a social impact fund in Oakland that has pushed Tesla to disclose how it uses employee arbitration agreements. “We’d like to see Elon Musk take the lead on dismantling racism throughout his factories and his company.”

In October, Owen Diaz, a Black man who previously worked as a contractor for Tesla and complained of pervasive racism at the plant, was awarded $137 million by a federal jury in San Francisco — believed to be the largest such verdict of its kind. The judge in the case signaled at a January hearing that he’ll probably reduce the award but won’t grant Tesla’s request for a new trial.

Tesla Challenges ‘Staggering’ $137 Million Award in Racism Case

The DFEH said Black workers were more quickly written up or fired for minor infractions and denied promotions.

“For many Black and/or African American workers, the stress from the severe and pervasive racial harassment, the risk of a physical altercation and escalation with harassers, the blatant discrimination, the disproportionately severe discipline” and the futility of complaining made the working conditions so intolerable that they resigned, according to the complaint.

The case is Department of Fair Employment and Housing v. Tesla Inc., 22CV006830, California Superior Court, Alameda County.

(Updates with background)

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How Trucker Protests Shut the Canadian Border and Rocked the Economy

(Bloomberg) — Canadian protests that began by championing the rights of truckers have spread into sprawling, ad-hoc anti-establishment demonstrations across the country — shuttering crucial trade links, confounding police and giving hints that the efforts could spread.

As of Thursday, the rolling blockades had closed three U.S.-Canada border crossings, including the crucial Ambassador Bridge between Detroit and Windsor, which is responsible for $13.5 million per hour in economic activity, according to the Windsor-Essex Regional Chamber of Commerce. 

That led to U.S. and Canadian auto plants curbing production and economists warning that the unrest could deliver a powerful one-two blow to Canada’s recovery if it continues — both further fanning inflation and sapping growth. 

The standoff, hours from the epicenter in Ottawa, is emblematic of how the protest has been almost flipped on its head. It was once about defending the rights of unvaccinated truckers and warnings that vaccine requirements would worsen a supply-chain crisis; now, the Ambassador Bridge blockade almost entirely targets working truckers while upending the supply chain. 

There were signs of easing tensions Thursday in Ottawa, as some trucks cleared out and Canada’s Conservative Party — whose current leading figures had egged on the protest — reversed course, calling for the blockades to end. But Prime Minister Justin Trudeau has few clean options, as the protesters’ demands are sprawling and include his removal from office.

The demonstrations have had staying power in Canada in large part because police, wary of stoking violence, have hesitated to make arrests and clear the blockades. Ottawa police say they are planning to step up enforcement soon, but so far there is little sign of it.

Anti-Government Sentiment

At its very beginning, the convoy was prompted by border rules that took effect in mid-January, requiring truckers crossing the U.S.-Canada border to be vaccinated. But it has since become a galvanizing force to spark broader political protest.

Many of the original organizers already had a long history of loathing Covid restrictions and hating Trudeau, who has not been shy about campaigning on vaccine mandates and requirements. He goaded the convoy on its way into Ottawa, dismissing its participants as a “fringe minority” with “unacceptable views.” The protesters have adopted the insults as a badge of honor, writing it on their trucks and placards.

While there are many self-described leaders in the movement, there is no clear figurehead. Canada Unity, a group that played a significant role in the logistics of the convoy, promoted a “memorandum of understanding” that included toppling Trudeau and installing a provisional government.

Earlier this week, Tom Marazzo — a former Canadian soldier — spoke at a makeshift news conference alongside protest organizers about the convoy perhaps joining forces with Canada’s opposition parties to form a new government. (Marazzo has since walked back this claim.)

“I hate to say it — they found a weakness in our democracy and are exploiting it,” said Stephanie Carvin, an associate professor at Ottawa’s Carleton University who studies security and counter terrorism.

The prominent leaders of the movement have ties to more traditional anti-establishment movements, she said.

“These are not any individuals who have anything to do with trucking,” Carvin said, “They’re not there for the mandates; they’re there to make mayhem.”

‘Risky and Significant’

The original convoy departed Canada’s west coast on Jan. 23, snowballing as it crossed the frigid Canadian prairies. The scope was unclear, and absurd claims filled the vacuum. Former hockey legend Theoren Fleury declared on Fox News that 50,000 trucks were en route. By the time the convoy entered Ontario on Jan. 27, a police spokesperson said it included just 113 semis and 276 other personal vehicles — but by then, other convoys had been organized as well.

The trucks began trickling into Ottawa on a Friday, and by Saturday, hundreds were circulating through the city core. Ottawa Police were concerned about the convoy, with Chief Peter Sloly describing the coming demonstrations as “unique, fluid, risky and significant.” But they appear to have underestimated what they were up against. Heavy industrial equipment — including full-size tractor trailers, grain trucks, even a crane — was driven right onto the street in front of Parliament.

Some protesters filtered away after the weekend, while a hardcore element dug in, including at least 400 semis and other large vehicles. They built out an astonishing infrastructure network to keep the protest supplied. A fuel tanker was brought in to a staging area to supply diesel to the downtown semis using jerry cans. Large kitchens were erected in tents, and piles of firewood stacked up. Soon the protesters brought in all kinds of amenities: DJ booths, bouncy castles and portable saunas.

Their demands have also begun to sprawl. A fundraising effort through GoFundMe was shut down, but others sprung up. The convoy leaders are now pivoting to asking for cryptocurrency in an effort to skirt restrictions, with prominent Fox News personalities Tucker Carlson, Sean Hannity and Laura Ingraham cheering them on.

For the roughly 24,000 people who live in apartments in Ottawa’s downtown, life was becoming intolerable as truck drivers blared their air horns for hours on end. A judge has since issued an injunction against the horn use, meaning any driver who continued doing it risked a criminal charge.

Police have few options now that the camp is so established. One problem is the presence of children: police estimate 25% of the heavy trucks have children living in the cabs with their parents.

Offshoots Metastasizing

As Ottawa’s protest dug in, offshoot protests metastasized across the country, even further detached from the initial notion of defending truckers. Cars and buses are still flowing in an underground tunnel, leaving semis uniquely hostage to the closure.

The Ambassador bridge is owned by a company whose other major industry is in fact trucking. The company’s statement expressed support for all truckers, but called for a reopening.

“We’re all anxious to see a resolution to the issue,” Dan Stamper, president of the Detroit International Bridge Co., said Thursday. In a written statement, Chairman Matt Moroun called for the blockade to end and floated several possible solutions, including repealing the vaccine requirements for cross-border trucking, which would amount to granting to a key demand. 

The economic fallout of prolonged closures would be substantial. Toyota Motor Corp., General Motors Co., Ford Motor Co. and Stellantis NV all curtailed shifts or production, either in Michigan or Ontario. Michigan Governor Gretchen Whitmer called for the bridge to reopen, while local police cautioned that they had few swift options.

“This is a national crisis,” Windsor Mayor Drew Dilkens said. “We hope to not have to move in. We hope they will voluntarily get in their cars and go on their way.”

Border crossings have also been closed in Manitoba and Alberta — provinces that, like Ontario, have conservative premiers who’ve generally resisted overly punitive lockdown measures.

Meanwhile, law enforcement agencies across the U.S. are bracing for the possibility of a new protest that could begin this weekend and carry into March, potentially including a cross-country caravan and disruptions to cities and major transportation routes.

Neither Trudeau nor President Joe Biden have given any hint that they’d ease vaccine requirements for cross-border truckers. Biden’s homeland security adviser, Liz Sherwood-Randall, held a meeting Wednesday on the subject and planned another Thursday. U.S. officials say they’re monitoring similar protests being planned in the U.S.

In Ottawa, police are finally starting to flex their muscles. On Thursday they announced they would start charging drivers who remained in the blockade with criminal mischief, and the police chief said they intend to go further on the offensive as reinforcements arrive from outside the city this weekend. Leaders of the demonstration have warned fellow protesters that the risk of violence is growing, a report Thursday in The Guardian said, citing unverified information circulating among the encampment.

Hundreds of trucks still remain, and protest leaders are escalating their rhetoric. Friday afternoon, one woman on a microphone at the main demonstration site compared their situation to Canada’s great military victories. “This is our Vimy, our Passchendaele, our Juno Beach,” she said.

(Updates to clarify who Carvin is speaking about in 7th paragraph of second section)

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U.S. Mocks ‘Bluster’ of Pair Charged in Massive Crypto Scam

(Bloomberg) — U.S. prosecutors came out swinging against the Manhattan couple charged with trying to launder billions of dollars worth of Bitcoin stolen from the Bitfinex currency exchange, mocking the pair’s “bluster” in a request for bail and urging a judge to keep them locked up until trial.

Ilya Lichtenstein, 34, and Heather Morgan, 31, have “highly troubling” overseas ties and fraudulent identities as well as access to hundreds of millions of dollars’ worth of cryptocurrency that make them flight risks, the U.S. Justice Department said in a court filing Thursday in Washington.

“Having now been charged and seeing the strength of the case, the defendants’ incentive to flee is dramatically increased,” prosecutors said in the filing.

Hours later, Chief Judge Beryl Howell granted a government request to transfer Lichtenstein and Morgan to Washington from New York and rescheduled a hearing on the bail dispute to Feb. 14 from Feb. 11, so the defendants can attend in person.

The U.S. filing was a response to the couple’s argument Wednesday that they should be released on bail because the case has “significant holes” and is based on circumstantial evidence that doesn’t include supporting emails or text messages about the alleged conspiracy.

“The defense bluster in the letter brief notwithstanding, the evidence of the offense is strong,” the U.S. said. “The government seized stolen cryptocurrency valued at the time at $3.6 billion from defendant Lichtenstein’s own account, an account which directly received the proceeds of the hack — a point that the defendants’ letter brief conveniently glosses over.”

The bail dispute is an early test for the government following the largest financial seizure ever. Lichtenstein and Morgan are accused of conspiring to launder 119,754 Bitcoin stolen during the 2016 Bitfinex heist. The couple’s bail was temporarily put on hold by a Washington judge after the U.S. filed an emergency request to review a New York judge’s decision allowing them to remain at home with electronic monitoring and bonds totaling $8 million.

Read More: ‘Crocodile of Wall Street’ Arrested in $4.5 Billion Crypto Crime

“This would seem to me to be a pretty strong case for denial of bail,” said Matthew L. Schwartz, a former federal prosecutor in Manhattan who’s now a white-collar criminal defense attorney and isn’t involved in the matter. “It’s a crime that involves billions of dollars and therefore the sentencing exposure is really, really high, which creates an incentive to flee.”

Prosecutors also criticized the couple’s letter for downplaying Morgan’s alleged role in the money laundering scheme by portraying her “as an unwitting bystander to any alleged wrongdoing, when she in fact played an integral role in the money laundering and fraud scheme.”

The couple argued in their earlier filing that they have already shown they’ll participate in the case by staying put even after finding out months ago that they were under investigation. 

“Access to wealth, while knowing the government was zeroing in on them, did not prompt them to flee at those times, and there is no credible reason to believe that it would cause them to flee now,” their lawyer wrote.

The 2016 theft of Bitcoin currently valued at about $4.5 billion hasn’t been fully explained by U.S. prosecutors, whose filings in the criminal case do not say who was responsible for the hack.

The case is U.S. v. Lichtenstein, 1:22-mj-00022, U.S. District Court, District of Columbia (Washington).

(Updates with couple’s transfer to Washington jail from New York.)

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Zillow Shares Surge on Faster Home-Flipping Wind-Down, ‘Super App’ Plans

(Bloomberg) — Zillow Group Inc. investors got a glimmer of hope after the company set ambitious new revenue goals and said it was winding down its home-flipping business faster than expected. 

Shares surged as much as 19% in late trading after the company beat estimates for fourth-quarter results. Zillow’s success selling homes pared expected writedowns and helped the company post an adjusted loss before interest, taxes, depreciation and amortization of $400,000. The average analyst estimate was for a loss of $177 million.

The rapid wind-down enables Zillow to move onto its next task, which Chief Executive Officer Rich Barton said would entail building a “housing super app” to integrate the currently fragmented process of buying or selling a house. That project, which includes helping house-hunters schedule tours and get mortgages, will translate into $5 billion in annual revenue and 45% margins on Ebitda by the end of 2025, according to Barton.

“People are asking us, how are you going to grow?” Barton said in an interview. “We put a stake in the ground. If people don’t believe it, at least they’re going to hear that I believe it.”

Zillow’s fourth-quarter results bring the company nearer to the end of a difficult chapter, in which it undertook an ambitious effort to build a tech-driven home-flipping operation. The business turned out to be more volatile than Barton had expected, and Zillow announced it was getting out of the operation in November. That move accelerated a stock market selloff that wiped out more than $35 billion of value. 

While investors are still waiting for Barton to outline concrete steps needed to realize the new goals, they were pleased by Zillow’s wind-down efforts. The company sold 8,300 homes in the fourth quarter, topping a previous expectation for about 5,000. 

The company said its total writedowns on Zillow Offers were $405 million, roughly $160 million less than it expected when it said it was exiting the business.

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Ex-Consultant Gets Temasek to Help It Build the TSMC of Chip Design

(Bloomberg) — One startup aims to become the go-to provider of chip design solutions for companies as more tech firms like Apple Inc. start to develop their own custom processors for PCs and servers to challenge industry mainstay Intel Corp.  

Bundang, South Korea-based SemiFive Inc. offers system-on-a-chip design solutions that can help companies cut development costs and time in half, a strategy similar to the foundry model Taiwan Semiconductor Manufacturing Co. pioneered for chip production. 

To realize its ambitions, SemiFive has raised 130 billion won ($109 million) at a $326 million value, said Brandon Cho, who founded the startup in 2018 with backing from SiFive Inc. The latest round drew Temasek Holdings Pte’s Pavilion Capital and several local asset management firms as new investors, joining previous backers SoftBank Ventures Asia and LB Investment. 

Following the round, SiFive holds a stake of about 20% in the startup. Cho, who spent five years leading semiconductor-related projects at Boston Consulting Group in Seoul after earning a PhD in computer engineering at Massachusetts Institute of Technology, and a group of fellow founders have more than 10%.

“If chip clients bring 30% of the ideas needed for custom chip designs, we, as a platform provider, can offer 70-80% of modules, like what Android is offering for software developers,” Cho said. “Big tech companies like Tesla, Apple, and Meta are strengthening their own chip capabilities and there’s an urgency that the current fabless value chain may not be sustainable. I think chip design houses will collapse and the fundamentals of the fabless industry will change.” 

SemiFive has integrated chip architectures for edge servers, high performance computing (HPC) and Internet of Things (IoT) products and aims to expand its portfolio to autos and microcontrollers. It’s currently working on eight projects from Korean companies including artificial intelligence chip startup FuriosaAI and Rebellions. The chips under SemiFive’s projects will be produced by Samsung Electronics Co.’s foundry fab.

Its competitors include China’s Verisilicon Microelectronics (Shanghai) Co., which provides one-stop custom silicon services and chip IP licensing, and Taiwan’s Global Unichip Corp., a full-service SoC design foundry. SOCs, the basic building block of modern smartphones, consolidate processing, graphics and memory into a single module, unlike the discrete components of desktop PCs and most laptops.

Total orders last year reached 30 billion won, generating revenue of 10 billion won, Cho said. The company targets to double its orders and grow sales five times this year, he said. 

The Korean chip startup, which runs global operations in India and Vietnam, aims to draw clients in the U.S. and China this year, though the pandemic is making it more challenging to break into new markets, Cho said. 

“We will pursue one more funding round at the end of this year if we need another acquisition,” Cho said. “If not, we’d skip another funding round and go for pre-IPO in 2023. Our target is to list shares as early as in 2024, hopefully in the U.S.”  

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Singapore Blue-Chip Veteran’s Firm Raises $130 Million Tech Fund

(Bloomberg) — The venture capital firm co-founded by former Singapore Airlines Ltd. Chairman Koh Boon Hwee closed its first fund at $130 million to back startups in Southeast Asia’s fast-growing technology industry.

The firm, Altara Ventures, drew in investors including Singaporean and South Korean sovereign wealth funds, Razer Inc., and a Europe-based fund of funds, Dave Ng, one of the firm’s five general partners, said in a phone interview. It exceeded its initial target of $100 million, he said.

Koh, 71, also the former chairman of DBS Group Holdings Ltd. and Singapore Telecommunications Ltd., founded Altara in 2020 with four fellow investors to tap Southeast Asia’s tech boom. About 70% of the fund has been earmarked for the region, with the firm focusing on areas including fintech, consumer internet, health care, logistics, enterprise software and education.

“We saw many consumer-focused fintech and logistics startups chart the way during the first decade,” Ng said. “As the region matures, we’re also looking to help build the next wave of tech companies.”

Ng and fellow partner Gavin Teo previously worked at B Capital, Facebook Inc. co-founder Eduardo Saverin’s venture capital house. The other three partners are Koh, Tan Chow Boon and Seow Kiat Wang, who founded Omni Industries, an electronics components maker acquired by Celestica Inc. in 2001.

Altara’s portfolio companies include Vietnam-based education technology startup Clevai, Malaysia digital insurtech platform PolicyStreet and Philippine digital bank Tonik. Together, the quintet has backed more than 100 companies, including Razer, Ninja Van and Twitch.

Southeast Asia, a region with about 650 million people, is seeing rising interest from investors scouting for companies that can capture the surge of online activity amid the pandemic.

“The venture and startup ecosystem really started gaining traction in Southeast Asia only within the last decade, so we have a long runway ahead of us,” Koh said via email. “Today, the debate has shifted from ‘do we need entrepreneurship and technology transformation?’ to ‘how do we do it?’”

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Debt Fears Swirl Around Logan as China Property Woes Deepen

(Bloomberg) — Concerns over the financial health of Logan Group Co. have shaken investor confidence in what was seen as one of China’s stronger developers, deepening the turmoil faced by the crisis-hit industry.  

Fitch Ratings downgraded the firm this week, citing a “recent disclosure of a private debt arrangement that is off its balance sheet.” Questions about the possible scale of Logan’s undisclosed debt had swirled in the weeks prior, pushing its dollar bonds to record declines and sending its shares to the lowest since 2017.

The builder’s debt had remained relatively resilient to the credit crunch engulfing the nation’s real estate sector, even as a record wave of downgrades hit its peers. But uncertainty remains over its private debt guarantees, and credit assessors have called for more clarity, as investors scrutinize the liquidity of firms whose finances were long considered more sound than the likes of China Evergrande Group. 

What’s the company?

Founded in 1996, Shenzhen-based Logan focuses on residential property development. It has projects in the Greater Bay Area comprising Guangdong, Hong Kong and Macau. The company ranked 20th among Chinese developers by contracted sales last year, according to data compiled by China Real Estate Information Corp.

 

What’s happening?

As recently as December, Logan’s dollar bonds traded close to par. But concerns over potential undisclosed debt last month triggered a record selloff in some of the notes to around 60 cents on the dollar. 

A drumbeat of reports that Logan provided guarantees to loans backing private notes have heightened transparency concerns, just as the nation’s builders are preparing to open their books for the first time since the liquidity crisis erupted.

While the company’s borrowings did not overstep Beijing’s “three red lines” metrics as of mid-2021, a 98% slump in land purchases in the second half of last year compared to the first six months raised concerns about its liquidity. Its contracted sales plunged 44% year-over-year in January.

Why does it matter?

Investors are growing increasingly wary of hidden surprises in China’s embattled property sector. More debt would mean more creditors, some of whom could demand early repayment. There’s also the risk that any undisclosed liabilities like trust loans, private bonds or high-yield consumer products would receive preferential treatment over money owed to offshore creditors. Evergrande, Kaisa Group Holdings Ltd. and Shimao Group Holdings Ltd. have all faced such obligations.

If Logan runs into liquidity trouble, it may spread a credit crisis sparked by Beijing’s clampdown on borrowing further into what were once perceived as safer areas. In doing so, it would potentially further restrict refinancing channels even for stronger developers. A prolonged and deepening liquidity crisis among Chinese builders is impacting property investment and dragging on the economy.

What does the company say?

Uncertainty over Logan’s private debt has challenged investor confidence. The company last month denied it had any privately placed debt before reportedly telling investors its guarantees on such notes didn’t exceed $1 billion. 

The developer this week responded to recent reports that it was considering a change in auditor, while stressing that “the current productions and operations of the company are normal.” A recent wave of auditor resignations at peers triggered worries of a new set of risks heading into the upcoming earnings season.

Logan didn’t respond to a request for comment from Bloomberg on Thursday.

What do the ratings firms say?

Fitch downgraded Logan one notch to BB- after its disclosure of an off-balance-sheet “private debt arrangement.” The builder has the equivalent of a BB credit rating from S&P Global Ratings and Moody’s Investor Services — slightly below investment-grade territory. 

Fitch said Tuesday that Logan “faces rising refinancing risk as its access to onshore and offshore bond markets appears limited.” The credit risk assessor warned that a further downgrade is possible “if Logan’s guarantee of the off-balance-sheet private debt is higher than previously disclosed or market confidence in the company worsens.” The firm’s private debt arrangement wasn’t included in audited financial statements, Fitch added.

S&P expressed similar concerns when it placed Logan on watch for downgrade last month. The ratings firm said it needed clarity on potential previously unreported debt guaranteed by the builder, and warned of the potential negative impact on its credit profile and liquidity if confirmed.

What are traders watching for next?

Investors are still searching for clarity over the true scale of Logan’s unreported debt. Two other key issues are whether the company can revive slumping sales and make more progress in raising cash. Logan and its subsidiaries face a 2 billion yuan ($314 million) bond due March 22 and a $300 million note that matures in August, Bloomberg-compiled data show. 

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Google Fiber Workers to Vote Next Month on Unionization

(Bloomberg) — Alphabet Inc. sub-contracted workers at a Google Fiber retail store in Missouri will vote next month on whether to unionize, the U.S. labor board announced Thursday.

Ballots will be mailed March 4, the National Labor Relations Board said. The original petition last month from the Alphabet Workers Union asked the labor board to deem Alphabet a “joint employer” of the roughly dozen Google Fiber staff the union seeks to represent. 

If the union had prevailed the internet giant would have been legally required to collectively bargain over those workers’ conditions. But the union withdrew that petition to speed up the process and filed a new one seeking negotiations only with BDS Solutions Group, the vendor that officially employs them, Beth Allen, a spokesperson for the Communications Workers of America, said last month.

“We have many contracts with both unionized and non-union suppliers, and respect their employees’ right to choose whether or not to join a union, just as we do for these employees,” Alphabet said in a statement, adding that the vote is “a matter between” BDS and CWA. “We expect all our suppliers to treat and pay their employees fairly, whether they are unionized or not,” Alphabet said.

The treatment of contract workers, who in 2018 became the majority of Alphabet’s global workforce, has been a persistent flashpoint for worker activism at the company and a focus of AWU, a CWA affiliate that launched publicly a year ago. Some of Alphabet’s contract workers have formally organized with other unions in recent years and won collective bargaining agreements with the vendors they worked for, including Google Shopping analysts in Pennsylvania and cafeteria workers in California.

“We provide a vital service to Alphabet and deserve a protected voice on the job in order to negotiate the fair wages, benefits and protections we deserve,” employee Jason Guffey said in a statement from the union. The group urged Alphabet to instruct BDS “to commit to a fair election in order to ensure that workers can freely exercise their rights.”

The Google Fiber workers are the first to petition to be formally represented by the AWU, which has been focusing on tackling issues via collective action, advocacy campaigns and legal complaints rather than seeking collective bargaining.

BDS didn’t immediately respond to an inquiry. In a message to employees from BDS management that AWU shared on Twitter this week, the company said, “We do not believe that it is in the best interest of our employees to unionize at this time.”

Alphabet once invested heavily in Google Fiber, which competes with major cable providers, but the company cut that spending around 2018 and has largely halted the service’s expansion into new markets. The division doesn’t share its sales.

(Updates with statement from union in the sixth paragraph.)

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SEC Climate-Rule Delay ‘Unacceptable,’ Senator Warren Says

(Bloomberg) — Senator Elizabeth Warren demanded the Securities and Exchange Commission speed up its push for new climate-change rules, saying its lack of progress is “unwarranted and unacceptable.”

In a letter sent Feb. 9, the Massachusetts Democrat told SEC Chair Gary Gensler that investors are being “left in the dark” about companies’ exposure to global-warming risks while the commission labors to craft a regulation. Disagreements between the agency’s three Democrats over the scope of the rule has bogged down the process, Bloomberg News reported Tuesday.

“These delays are unwarranted and unacceptable,” Warren wrote. “Every day of continued delay means that the SEC is failing to meet its mission.”

The missive is a rare rebuke of the SEC from a Democrat on Capitol Hill, where progressives have cheered Gensler’s expansive agenda to clamp down on cryptocurrencies, boost oversight of Wall Street and levy steep fines on corporations accused of wrongdoing. Pressure on the SEC to act quickly on climate change has become a focus for activists after another centerpiece of President Joe Biden’s climate policy, some $550 billion in tax credits and spending for clean energy, collapsed last year in the Senate.

Last July, Gensler said he’d “asked SEC staff to develop a mandatory climate risk disclosure rule proposal for the commission’s consideration by the end of the year.” That timeline has now slipped until at least March. The rule is expected to direct corporations to disclose details about their emissions and exposure to rising global temperatures. A spokesperson for Gensler declined to comment. 

The conflict between Gensler and his fellow Democratic commissioners, Allison Herren Lee and Caroline Crenshaw, centers on how much information the agency can force companies to divulge without losing an almost certain legal challenge from the business lobby. 

In her letter to Gensler, Warren said the SEC has “a responsibility to put in place the strongest rule to ensure that investors are adequately informed about the threats the climate crisis poses to their investments and the broader economy.” She asked Gensler to send her by Feb. 23 a “clear timeline” for when the rule proposal would be introduced and advanced, as well as a summary of any concerns around the agency’s powers to impose the new requirements. 

(Updates with Gensler spokesperson declining to comment in fifth paragraph.)

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Affirm Posts Wider Quarterly Loss Early After Twitter Posting

(Bloomberg) — Affirm Holdings Inc. tumbled after the buy-now, pay-later firm whipsawed investors with an errant, early release of partial financial results and then forecast quarterly revenue that missed analyst estimates.

The company’s shares plunged as much as 33% on Thursday afternoon after it reported results with a third-quarter revenue forecast that missed some analyst estimates, and a widened net loss. Just hours earlier, investors were given a snapshot of what the company called “another great quarter” via an accidental Tweet, which was enough of a glimpse to send the shares surging.

The afternoon volatility caused a halt in trading — and prompted the company to explain itself — again on Twitter. Some results had leaked earlier than the official earnings release time, scheduled for after the market closed, “due to human error,” it said.

The second-quarter results, which it went on to release ahead of schedule anyway, showed a 77% gain in revenue. Its net loss of $159.7 million widened from $26.6 million a year earlier, missing the $100.3 million average estimate of six analysts in a Bloomberg survey. 

In the accidental Tweet posted at about 1:15 p.m., the company had referenced the revenue surge, before deleting the post. The stock had fallen 26% this year through Wednesday’s close. 

“Affirm’s strong growth accelerated this quarter, reflecting the key advantages of our superior technology, and commitment to putting people first,” Max Levchin, founder and chief executive officer, said in the statement. “We more than doubled gross merchandise volume year over year. Over the last 12 months, we have added nearly seven million active consumers to our network, while enabling 168,000 merchant partners to better serve their customers.”

The San Francisco-based firm offers “buy now, pay later” loans to consumers through its online platform.

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