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For Michigan’s Economy, Electric Vehicles Are Promising and Scary

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Last fall, Tiffanie Simmons, a second-generation autoworker, endured a six-week strike at the Ford Motor factory just west of Detroit where she builds Bronco S.U.V.s. That yielded a pay raise of 25 percent over the next four years, easing the pain of reductions that she and other union workers swallowed more than a decade ago.But as Ms. Simmons, 38, contemplates prospects for the American auto industry in the state that invented it, she worries about a new force: the shift toward electric vehicles. She is dismayed that the transition has been championed by President Biden, whose pro-labor credentials are at the heart of his bid for re-election, and who recently gained the endorsement of her union, the United Automobile Workers.The Biden administration has embraced electric vehicles as a means of generating high-paying jobs while cutting emissions. It has dispensed tax credits to encourage consumers to buy electric cars, while limiting the benefits to models that use American-made parts.But autoworkers fixate on the assumption that electric cars — simpler machines than their gas-powered forebears — will require fewer hands to build. They accuse Mr. Biden of jeopardizing their livelihoods.“I was disappointed,” Ms. Simmons said of the president. “We trust you to make sure that Americans are employed.”Tiffanie Simmons works in Wayne, Mich., at a Ford Motor factory that builds Broncos.Nick Hagen for The New York TimesMs. Simmons’s union has endorsed President Biden, but “I was disappointed” in him, she said.Nick Hagen for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Schumer Wields Political Heft in Bid for New York Chips Funds

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    The Senate majority leader helped deliver billions of dollars in federal funding for semiconductors. Now he’s pushing for his state to reap benefits.In a darkened hotel ballroom in San Jose, Calif., last November, the most powerful players in the semiconductor industry received a familiar sales pitch.Senator Chuck Schumer, the majority leader, appeared by video message to urge the industry titans at the Semiconductor Industry Association’s annual awards dinner to work together to strengthen American manufacturing of a critical technology — and to invest more in his home state of New York.“I ask that more of the industry consider investing in the Empire State, and if you do, you’ll find no greater champion in your corner than me, the Senate majority leader,” Mr. Schumer said, to cheers and laughs of recognition from a crowd accustomed to the senator’s solicitations.Amid growing fears about China’s dominance of technology and America’s loss of competitiveness, Mr. Schumer last year helped rally Congress to push through the biggest industrial policy programs the United States has seen a generation. The Biden administration is now preparing to invest tens of billions of dollars in the U.S. semiconductor industry in an effort to boost chip manufacturing across the country and lessen U.S. reliance on foreign factories.If Mr. Schumer gets his way, a substantial part of that funding will flow to New York.In his encounters with chip executives, Commerce Secretary Gina Raimondo and President Biden himself, Mr. Schumer has openly and aggressively drawn on his political capital as majority leader to try to channel investment to his home state. During the months where Congress was debating whether to approve that funding, industry executives who set foot in Mr. Schumer’s office or spoke to him on the flip phone he carries in his breast pocket were asked when, not if, they would invest in New York.Mr. Schumer, a longtime China critic, primarily views the investments as critical to reducing America’s reliance on Beijing for a technology that powers everything from cars and dishwashers to missiles and fighter jets. Most chip production has moved to Asia in recent decades, leaving the U.S. economy highly vulnerable to shortages, as became apparent during the pandemic.But he also saw the opportunity to fulfill a more personal goal: securing investment that could revive the factory towns of his home state, which had been hollowed out through decades of competition with China. The move would also augment his local political support, attract donations from chip companies to fill Democratic coffers and cement his legacy as a proponent of upstate New York.“I cared about upstate and I cared about competition with China,” Mr. Schumer said in an interview in Albany in June. “When I drafted the legislation, I did things with New York companies in mind.”Senate majority leaders and other legislators have long used their clout to drive federal funds back home. But Mr. Schumer is capitalizing on his position at an opportune moment, as the United States prepares to invest nearly $53 billion in the sector, including $11 billion for chip research and $39 billion in manufacturing grants.Still, some critics have cautioned that economic and strategic factors, not political influence, must determine the investment decisions that could shape the U.S. economy for decades to come.A silicone wafer at the GlobalFoundries facility.Cindy Schultz for The New York TimesIf the proposed investments are realized, New York could become one of the country’s busiest hubs for chip production. Chip makers like GlobalFoundries, IBM, Onsemi and Wolfspeed are applying for funds to build or expand facilities there. Micron Technology, a memory chip maker, is proposing to invest up to $100 billion near Syracuse over the next two decades to build what would be the largest high-tech chips facility proposed in the United States, employing up to 9,000 people.Mr. Schumer is also pushing for New York to play a leading role in semiconductor research, as the headquarters of a new federal chip research organization.Competition for federal funding is expected to be fierce. By late June, the Commerce Department — which will dole out the funds — had received nearly 400 statements of interest from companies that intended to apply for money.“I suspect there will be many disappointed companies who feel that they should have a certain amount of money,” Ms. Raimondo said in February.New York has already faced some setbacks. Taiwan Semiconductor Manufacturing Company, Samsung and Intel, makers of the most cutting-edge types of logic chips, passed over the state in recent years in favor of Arizona, Texas and Ohio, where they are now building large facilities that could absorb a significant portion of government funding.Chip industry executives say practical factors, like the cost of electricity, land and capital, the availability of workers and the proximity of their suppliers, weigh heaviest in their decisions about where to invest.But the pressure from Mr. Schumer — and from other influential lawmakers, university presidents and company executives who helped secure the funding — raises questions about the role powerful political figures will play in the next chapter of American industrial policy.“I think there is and ought to be a lot of skepticism about political players having a major say in decision making over where these funds are spent,” said Chris Miller, an associate professor at Tufts University and the author of “Chip War: The Fight for the World’s Most Critical Technology.”“If you want effective industrial policy, you have to keep it as far away as possible from pork barrel politics,” he said.The Commerce Department has been hiring experts in finance and semiconductors to review company applications, and it has set up a selection committee to chose the board for the new research center, called the National Semiconductor Technology Center. The department appears to be trying to avoid any undue influence or favoritism.“Our awards will be entirely dependent upon the strength of applications and which projects will advance U.S. economic and national security interests,” the Commerce Department said in a statement.Mr. Schumer insists that New York will win federal dollars on its own merits, but he is also explicit about the benefit his position brings. In June, as he walked the sunlit halls of the Albany NanoTech Complex, a long-running chip research and educational facility, Mr. Schumer said he “did not close out a single discussion” with a semiconductor company without encouraging them to invest in New York.GlobalFoundries is among the chip makers that stand to benefit from the CHIPS act.Cindy Schultz for The New York TimesNew York has five main advantages, he told executives: Skilled workers, stemming from New York’s history of manufacturing. Cheap and plentiful water. Cheap hydropower. Shovel-ready sites for companies to build on.“And fifth, they had the majority leader,” he said.In a yellow-lit clean room behind Mr. Schumer, workers in white protective suits were tending to hundreds of millions of dollars of advanced machinery. On tracks overhead, mechanized metal pails whizzed by carrying silicon wafers, each roughly the size of a record, to and from the machines, where they would be imprinted with layers of intricate circuitry.Mr. Schumer paused to peer over his reading glasses at a smooth, white box the size of a mobile home: an extreme ultraviolet lithography machine, made by the Dutch firm ASML, arguably the most advanced piece of machinery ever developed.Albany NanoTech is the only public research facility in the United States with such a machine. The facility is applying for federal funding to build a new clean room in an adjacent parking lot, and it hopes to become home to part of the government’s new research center.“This is the perfect place,” Mr. Schumer said. “When we wrote the CHIPS and Science bill to set up a National Semiconductor Technology Center, I had Albany in mind. And I’m pushing to get it.”Mr. Schumer said he had personally made that case to a parade of administration officials he brought through the state. That included Mr. Biden, who was pitched on New York’s potential as the two men rode in a motorcade to hear Micron’s investment announcement last October.By his telling, Mr. Schumer’s efforts on behalf of upstate New York are a personal mission, stemming in part from an early challenge from a political opponent who told voters they would never see Mr. Schumer, a Brooklyn native, west of the Hudson River. As Mr. Schumer watched companies like General Motors, General Electric and Carrier shutter their New York facilities, he said, he vowed to do something to stop the flow of young people out of the state.Mr. Schumer had also been one of Congress’ earliest China hawks, particularly on the issue of Chinese currency manipulation. During a workout in 2019 in the Senate gym, Mr. Schumer began forming a plan with Senator Todd Young, Republican of Indiana, to bolster the U.S. economy by dedicating over $100 billion to technology research.It took two years — and an aggressive, coordinated lobbying effort between government and industry — to amass the support and momentum to turn that bill into law. Mr. Schumer and other key Republican and Democratic lawmakers enlisted company executives, university presidents and state officials to talk publicly about the importance of the funding, and put pressure on reluctant members of Congress.Mr. Schumer also worked closely with Ms. Raimondo to push the bill forward. He called her frequently as obstacles arose, including during Sunday Mass and her daughter’s 18th birthday party, she said in an interview in July 2022.As the bill progressed, the prospect of funding for new U.S. factories touched off an elaborate game of courtship among legislators, state officials and companies.The number of chip lobbyists in Washington multiplied. Companies like GlobalFoundries and Intel, which stood to benefit enormously from the legislation, hosted or attended fund-raisers and virtual events for Mr. Schumer in the months before the CHIPS Act was passed. From the beginning of 2021 through June 2023, political action committees linked with Mr. Schumer received more than $350,000 in donations from executives at chip companies and their suppliers, including a $5,000 donation from Intel’s chief executive, Pat Gelsinger, data from the Federal Election Commission shows.Mr. Schumer, right, viewed a model of a Micron facility with President Biden in Syracuse, N.Y. Micron has projected that the facility will employ up to 9,000 people.Kenny Holston for The New York TimesNew York played host to a series of chip companies considering potential investments, particularly for the plot that Micron now plans to build on. TSMC looked at the site in 2019 before it chose Arizona, and Intel considered the same location but ultimately chose Ohio.Micron was ready to write off New York because the state did not have a big enough site, Ryan McMahon, the local county executive, said. To win the final bid, the county spent tens of millions of dollars acquiring land, including buying out a street of homeowners, and running gas and electricity to the site, he said.“If Schumer didn’t introduce us, it’s one of those things, you wonder if it ever would have happened,” Mr. McMahon, a Republican, said.Mr. Schumer, along with other proponents, secured an investment tax credit in the chips legislation that Micron saw as key to making the economics of the project work. And at the urging of Gov. Kathy Hochul, New York state lawmakers passed their own chips subsidy bill to complement the federal one, approving up to $500 million a year in tax abatements to chip manufacturers.Micron has said it plans to start construction next year and complete the first $20 billion phrase of the factory by 2030. New York State has promised to give Micron $5.5 billion in tax credits over the life of the project if the company meets certain employment targets.As the biggest maker of memory chips with headquarters in the United States, Micron is seen as a likely candidate for a federal grant. But other developments have thrown the project into question: Micron has recently become the subject of a crackdown in China that could cost the company an eighth of its global revenues, potentially undercutting its ability to make ambitious investments.The deal has also been met with skepticism from local government watchdogs, who fear that Micron will become the latest firm to be offered taxpayer subsidies but fail to deliver the promised economic impact.“It might be good geostrategic policy for the United States,” said John Kaehny, executive director of Reinvent Albany, a watchdog focused on the New York government. “But for New York, it’s an incredibly low return on the investment of subsidy dollars.”For both Mr. Schumer and Governor Hochul, the Micron investment became a centerpiece of their electoral strategy last fall. With Republicans on their way to the best statewide showing in two decades, both Democrats packaged clips of themselves with Micron’s chief executive into TV ads that blanketed parts of the state otherwise wary of Democrats’ economic agenda.“Transformational for upstate New York, transformational for America,” Mr. Schumer said in one.Nicholas Fandos More

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    To Tap Federal Funds, Chip Makers Will Need to Provide Child Care

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    The move seeks to help more women join the work force as industry leaders complain of labor shortages.WASHINGTON — The Biden administration plans to leverage the federal government’s expansive investment in the semiconductor industry to make progress on another goal: affordable child care.On Tuesday, the Commerce Department will announce that any semiconductor manufacturer seeking a slice of nearly $40 billion in new federal subsidies will need to essentially guarantee affordable, high-quality child care for workers who build or operate a plant.Last year, a bipartisan group of lawmakers passed the CHIPS Act, which devoted $39 billion to directly boost U.S. semiconductor factories as part of $52 billion in subsidies for the industry, in hopes of making the nation less reliant on foreign suppliers for critical chips that power computers, video games, cars and more.Companies that receive the subsidies to build new plants will be able to use some of the government money to meet the new child care requirement. They could do that in a number of ways, in consultation with Commerce officials, who will set basic guidelines but not dictate how companies ensure workers have access to care they can afford.That could include building company child-care centers near construction sites or new plants, paying local child-care providers to add capacity at an affordable cost for workers, directly subsidizing workers’ care costs or other, similar steps that would ensure workers have access to care for their children.American employers, including manufacturers, are increasingly raising concerns that a lack of access to affordable child care is blocking millions of Americans from looking for work, particularly women. President Biden pushed Congress to address those concerns over the last two years, proposing hundreds of billions of dollars for new child care programs, but he was unable to corral support from even a majority of Senate Democrats.But Mr. Biden did convince lawmakers to approve a range of new spending programs seeking to boost American manufacturing. Now, Commerce is trying to utilize a centerpiece of those efforts, which aims to expand American semiconductor manufacturing, to make at least a small dent in his large goals for the so-called care economy.The Global Race for Computer ChipsA Ramp-Up in Spending: Amid a tech cold war with China, U.S. companies have pledged nearly $200 billion for chip manufacturing projects since early 2020. But the investments have limits.Crackdown on China: The United States has been aiming to prevent China from becoming an advanced power in chips, issuing sweeping restrictions on the country’s access to advanced technology.Arizona Factory: Internal doubts are mounting at Taiwan Semiconductor Manufacturing Company, the world’s biggest maker of advanced chips, over its investment in a new factory in Phoenix.CHIPS Act: Semiconductor companies, which united to get the sprawling $280 billion bill approved last year, have set off a lobbying frenzy as they argue for more cash than their competitors.It joins a growing list of administration efforts to expand the reach of Mr. Biden’s economic policies beyond their primary intent. For instance, administration officials have attached stringent labor standards and “Buy America” provisions to money from a bipartisan infrastructure law. The child care requirement will be flexible for chip makers, but it will almost certainly divert some subsidy dollars that are meant to expand factory capacity and create jobs.The Commerce Department is expected to release its application on Tuesday, allowing companies to begin making a case for federal subsidies that the industry lobbied hard to secure from Congress.The prospect of accessing those funds has already enticed domestic and foreign-owned chip makers to announce billions of dollars in plans for new investments in Arizona, central New York and elsewhere.But even as they ramp up investments, companies are complaining of difficulties in finding workers to build and operate manufacturing facilities.America’s child care industry has not fully rebounded from the pandemic recession. It is still about 58,000 workers, or 5 percentage points, short of its prepandemic peak, according to an analysis of Labor Department data by the Center for the Study of Childcare Employment at the University of California-Berkeley.Shortly before the pandemic, the Bipartisan Policy Center in Washington surveyed 35 states and found more than 11 million children had a potential need for child care — yet fewer than 8 million slots were available.That shortage is particularly acute in some of the areas where manufacturers are set to begin building new chip plants spurred by the new legislation. Commerce Department officials calculate that in the Syracuse area, where Micron announced a $100 billion chip making investment last year after Mr. Biden signed the new law, the need for slots in child care facilities is nearly three times the size of the actual care capacity in the region.In Phoenix, where semiconductor manufacturing is booming, child care costs consume about 18 percent of a typical construction or manufacturing worker’s salary. That share is higher than the national average.Commerce Secretary Gina Raimondo, center, with Gov. Kathy Hochul of New York, said that the child care requirements should help companies hire mothers, easing a labor shortage.Sarah Silbiger for The New York TimesGina Raimondo, the Commerce secretary, said in an interview that the child-care requirements should help companies cope with a tight labor market by making it easier for them to attract and retain caregivers who have been kept from working by difficulties finding care for their children.In a speech last week, Ms. Raimondo called efforts to attract more women to the work force “a simple question of math” for industries complaining of labor shortages. “We need chip manufacturers, construction companies and unions to work with us toward the national goal of hiring and training another million women in construction over the next decade to meet the demand not just in chips, but other industries and infrastructure projects as well,” she said.Only about 3 in 10 U.S. manufacturing workers are women. Ms. Raimondo said the CHIPS Act would fail if the administration did not help companies change those numbers, by bringing in women who have children.“You will not be successful unless you find a way to attract, train, put to work and retain women, and you won’t do that without child care,” Ms. Raimondo said in an interview.The Commerce requirement would represent a relatively small step toward Mr. Biden’s much larger, and as-yet unfulfilled, child care ambitions.Mr. Biden unveiled a $4 trillion economic agenda in the months after he took office. It was split into two parts. One focused on physical investments: repairing bridges and water pipes, laying broadband cable, spurring a shift to low-emission sources of energy and catalyzing new manufacturing capacity to compete on a global stage. It was a source of repeated legislative success for the president, who signed a bipartisan infrastructure bill, the CHIPS bill and a climate, health and tax bill that passed with only Democratic votes.But Mr. Biden failed to persuade centrist holdouts in his party, like Senators Kyrsten Sinema of Arizona and Joe Manchin III of West Virginia, to back most of the provisions in the second half of his agenda. Those were largely the president’s plans to invest in people: federally guaranteed paid leave; subsidized care for children, the disabled and older Americans; universal prekindergarten; free community college for all, and more.The lopsided nature of Mr. Biden’s success threatens to exacerbate existing gender disparities in the economy. Some economists warn they could hinder future economic growth. Many of Mr. Biden’s people-focused programs were deliberately aimed at boosting female participation in the work force.It could be years before Democrats have another opportunity to pass those programs. Republicans won control of the House of Representatives last fall and roundly oppose Mr. Biden on new spending proposals and the tax increases on corporations and high earners that he has called for to cover that spending. Progressive groups and liberal lawmakers largely concede there is little chance of a child care bill making its way to Mr. Biden’s desk before the 2024 election.When it became clear last year that sweeping plans to expand and subsidize child care would not make it into the climate, health and tax bill that marked the culmination of Mr. Biden’s economic efforts in Congress, Ms. Raimondo gathered aides around a conference table. She told them, she said, that “if Congress wasn’t going to do what they should have done, we’re going to do it in implementation” of the bills that did pass.Some American manufacturers have already turned to on-site care facilities to help meet workers needs. The automaker Toyota has provided 24-hour care at a factory in Kentucky since 1993 and one in Indiana since 2004.Chad Moutray, director of the Center for Manufacturing Research at the Manufacturing Institute, which is affiliated with the National Association of Manufacturers, wrote in a report late last year that child care availability is part of the reason women do not seek more jobs in manufacturing.“Women represent a sizable talent pool that manufacturers cannot ignore,” he wrote. More

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    Amazon Labor Union, With Renewed Momentum, Faces Next Test

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    The Amazon Labor Union has built momentum leading up to an election this week at an 800-person warehouse near Albany, N.Y.A federal labor official recently endorsed the union’s election victory at a Staten Island warehouse in April, which Amazon has challenged, while workers’ frustrations over pay and safety have created an opportunity to add supporters and pressure the company to bargain.But the union faces questions about whether it can translate such opportunities into lasting gains. For months after its victory at the 8,000-person warehouse on Staten Island, the union appeared to be out of its depths. It nearly buckled under a crush of international media attention and lost a vote at a second Staten Island warehouse in May.At times, it has neglected organizing inside the original warehouse, known as JFK8, where high turnover means the union must do constant outreach just to maintain support — to say nothing of expanding. Christian Smalls, the union’s president and a former JFK8 employee, seemed distracted as he traveled widely. There was burnout and infighting in the group, and several core members left or were pushed out.“It wasn’t clear what goal we should be working towards,” said Cassio Mendoza, a JFK8 worker and the union’s communications director, alluding to the sometimes competing priorities of pushing for a contract and organizing more warehouses.The election near Albany, to be spread out over four days between Wednesday and Monday in Castleton-on-Hudson, could help determine whether the earlier problems were natural growing pains or a sign of deeper dysfunction.Amazon employees at the barbecue signed a petition calling on the company to negotiate with the union. DeSean McClinton–Holland for The New York TimesAmazon has cast doubt on the Amazon Labor Union’s experience and says it doesn’t believe that the union represents workers’ views. The company said it was investing $1 billion over the next year to permanently raise hourly pay.Among the union’s biggest diversions in recent months was countering Amazon’s attempt to overturn its victory, which consumed time and resources, as supporters and leaders testified in hearings that dragged across 24 business days beginning in mid-June. The union delayed plans to train more workers as organizers. A national organizing call was put on hold.Just before Labor Day, the National Labor Relations Board official running the hearings recommended rejecting Amazon’s challenge and certifying the union. A regional official must still weigh in.More on Big TechInside Meta’s Struggles: After a rocky year, employees at Meta are expressing skepticism, confusion and frustration over Mark Zuckerberg’s vision for the metaverse.A Deal for Twitter?: In a surprise move, Elon Musk has offered to acquire Twitter at his original price of $44 billion, which could bring to an end the acrimonious legal fight between the billionaire and the company.Hiring Freezes: Amazon is halting corporate hiring in its retail business for the rest of the year, joining Meta as the latest tech companies to pull back amid the economic uncertainty.TikTok Nears Deal with U.S.: The Biden administration and the Chinese-owned video app have drafted a preliminary agreement to resolve national security concerns over the platform, but hurdles remain over the terms.The finding appeared to bolster the union within the Staten Island warehouse, though management responded by sending workers a message saying the company intended to appeal. “We believe a direct relationship with you is best,” the message said.Around the same time, the union began to refocus. It opened an office on Staten Island in late August, hired two full-time staff members and set up a database tracking worker support. “I feel we are in a better place than we have ever been,” Mr. Mendoza said.The union brought in prominent labor organizers to lead regular in-person training on how to push for a contract. It finally held two calls in an effort to recruit and train leaders for organizing drives nationwide.“Your building could be next, and that is why we are having this call,” Madeline Wesley, an Amazon employee who is a lead Amazon Labor Union organizer for the second Staten Island warehouse, said on one call. Workers who indicated they were from facilities in Kentucky, New Jersey, Ohio and Washington took part.The union, which says it has set aside about one-fifth of its more than half-million-dollar budget for expansion, is already backing other organizing campaigns, including the one in Castleton-on-Hudson and another at a warehouse east of Los Angeles. Nannette Plascencia, a self-described “soccer mom” who is the California facility’s lead organizer, met Mr. Smalls at a party in Hollywood and decided that the Amazon Labor Union “understood where we were coming from,” she recalled in an interview.On Tuesday, the union submitted a petition for an election to represent workers at Ms. Plascencia’s warehouse, according to the N.L.R.B. Officials have yet to verify whether the union demonstrated enough support to warrant an election.“Check out the Amazon 25-cent raise — we’re not falling for that,” Christian Smalls, the union’s president, said at the barbecue.DeSean McClinton–Holland for The New York TimesIn late September, Amazon told workers that it was increasing hourly wages to reflect local market conditions, pledging to raise them by more than $1 in many warehouses. But at JFK8, where pay started at $18.25 an hour, the raise was between 25 cents and 75 cents an hour, depending on level and tenure.“It’s not enough to buy groceries,” said Celia Camasca, an employee of the warehouse there. “It would be better if they would have said nothing.”The union emphasized the slim raise at a barbecue outside the warehouse that had been coincidentally planned for an afternoon shortly after workers learned about it. “Check out the Amazon 25-cent raise — we’re not falling for that,” said Mr. Smalls, the union’s president and the event’s M.C.Union officials circulated a petition demanding that Amazon come to the bargaining table and that it give workers on Staten Island an immediate cost-of-living wage increase. Brandon Wagner, a packer who said that he had worked at the warehouse for about a month and that he previously made $17 an hour at a Wendy’s, signed the petition while waiting in line for food because, he said, workers are underpaid.Paul Flaningan, an Amazon spokesman, said that the national average pay for most frontline jobs was more than $19 an hour and that the company offered “comprehensive benefits” for full-time employees, including health insurance from Day 1, paid parental leave and 401(k) matching.The union still faces numerous obstacles. Amazon could spend years appealing the election result on Staten Island, and the company still has enormous power over JFK8 workers. After workers protested Amazon’s response to a fire at the site last week, the company suspended more than 60 of them with pay while, it said, it investigated what had occurred. The union filed unfair-labor-practice charges over the suspensions; Amazon said most of the workers had returned to work.The voting near Albany presents the union with its most visible immediate test.In interviews outside the warehouse, which handles oversize items like lawn mowers and televisions, many workers cited safety concerns and said pay was too low given the difficulty of the work. New workers made a base wage of $15.70 an hour before an increase of $1.30 this month.Heather Goodall is a leader of the union effort at Amazon’s warehouse in Castleton-on-Hudson, N.Y.DeSean McClinton–Holland for The New York TimesSome also complained that Amazon was too quick to discipline workers for minor infractions.David Bornt, who scans in merchandise before placing it in bins, said a misunderstanding over a quota had recently led to his being written up. He argued that a union could ease such stresses.“It’s someone to have your back,” Mr. Bornt said. “I have four kids, one on the way. I can’t be worried about losing my job at any minute.”Other employees said they opposed the union because they were satisfied with their pay and benefits and didn’t see how a union could improve the situation.“There’s just no need for it,” said Anthony Hough, one of those workers. “We just got a raise.”According to government data, Albany is one of the most unionized metropolitan areas in the country, and many employees expressed positive views about unions. But some said past experience at unionized workplaces made them less eager to join another one. Some also said they distrusted the Amazon Labor Union in particular.“The A.L.U. is new,” said Jacob Carpenter, another employee. “They’re not giving us any information.”The election outcome is likely to shape perceptions of the union. Heather Goodall, the lead organizer at the warehouse, is a member of the Amazon Labor Union’s board, and leaders of the union like Connor Spence, its treasurer, have visited the Albany area regularly. Mr. Smalls has traveled there as well.Ms. Goodall said she was concerned about safety at the warehouse. An Amazon spokesman said the company had a better overall safety record than other retailers. DeSean McClinton–Holland for The New York TimesMs. Goodall said she joined Amazon in February to help unionize the warehouse because she was concerned about unusually high injury rates, among other safety issues. The facility was evacuated after a cardboard compactor caught fire last week, two days after the JFK8 fire, which was similar.“The timeline to fix things is before something tragic happens,” Ms. Goodall said.She accused Amazon of running an aggressive anti-union campaign, including regular meetings with employees in which it questions the union’s credibility and suggests that workers could end up worse off if they unionize.Mr. Flaningan, the company spokesman, said that while injuries increased as Amazon trained hundreds of thousands of new workers in 2021, the company believed that its safety record surpassed that of other retailers over a broader period.“Like many other companies, we hold these meetings because it’s important that everyone understands the facts about joining a union and the election process itself,” he said, adding that the decision to unionize is up to employees. More

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    States Turn to Tax Cuts as Inflation Stays Hot

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    WASHINGTON — In Kansas, the Democratic governor has been pushing to slash the state’s grocery sales tax. Last month, New Mexico lawmakers provided $1,000 tax rebates to households hobbled by high gas prices. Legislatures in Iowa, Indiana and Idaho have all cut state income taxes this year.A combination of flush state budget coffers and rapid inflation has lawmakers across the country looking for ways to ease the pain of rising prices, with nearly three dozen states enacting or considering some form of tax relief, according to the Tax Foundation, a right-leaning think tank.The efforts are blurring typical party lines when it comes to tax policy. In many cases, Democrats are joining Republicans in supporting permanently lower taxes or temporary cuts, including for high earners.But while the policies are aimed at helping Americans weather the fastest pace of inflation in 40 years, economists warn that, paradoxically, cutting taxes could exacerbate the very problem lawmakers are trying to address. By putting more money in people’s pockets, policymakers risk further stimulating already rampant consumer demand, pushing prices higher nationally.Jason Furman, an economist at Harvard University who was an economic adviser under the Obama administration, said that the United States economy was producing at full capacity right now and that any additional spending power would only drive up demand and prices. But when it comes to cutting taxes, he acknowledged, the incentives for states do not always appear to be aligned with what is best for the national economy.“I think all these tax cuts in states are adding to inflation,” Mr. Furman said. “The problem is, from any governor’s perspective, a lot of the inflation it is adding is nationwide and a lot of the benefits of the tax cuts are to the states.”States are awash in cash after a faster-than-expected economic rebound in 2021 and a $350 billion infusion of stimulus funds that Congress allocated to states and cities last year. While the Biden administration has restricted states from using relief money to directly subsidize tax cuts, many governments have been able to find budgetary workarounds to do just that without violating the rules.Last week, Gov. Ron DeSantis of Florida signed a $1.2 billion tax cut that was made possible by budget surpluses. The state’s coffers were bolstered by $8.8 billion in federal pandemic relief money. Mr. DeSantis, a Republican, hailed the tax cuts as the largest in the state’s history.“Florida’s economy has consistently outpaced the nation, but we are still fighting against inflationary policies imposed on us by the Biden administration,” he said.Adding to the urgency is the political calendar: Many governors and state legislators face elections in November, and voters have made clear they are concerned about rising prices for gas, food and rent.“It’s very difficult for policymakers to see the inflationary pressures that taxpayers are burdened by right now while sitting on significant cash reserves without some desire to return that,” said Jared Walczak, vice president of state projects with the Center for State Tax Policy at the Tax Foundation. “The challenge for policymakers is that simply cutting checks to taxpayers can feed the inflationary environment rather than offsetting it.”The tax cuts are coming in a variety of forms and sizes. According to the Tax Foundation, which has been tracking proposals this year, some would be phased in, some would be permanent and others would be temporary “holidays.”Next month, New York will suspend some of its state gas taxes through the end of the year, a move that Gov. Kathy Hochul, a Democrat, said would save families and businesses an estimated $585 million.In Pennsylvania, Gov. Tom Wolf, a Democrat, has called for gradually lowering the state’s corporate tax rate to 5 percent from 10 percent — taking a decidedly different stance from many of his political peers in Congress, who have called for raising corporate taxes. Mr. Wolf said in April that the proposal was intended to make Pennsylvania more business friendly.States are acting on a fresh appetite for tax cuts as inflation is running at a 40-year high.OK McCausland for The New York TimesMr. Furman pointed to the budget surpluses as evidence that the $1.9 trillion pandemic relief package handed too much money to local governments. “The problem was there was just too much money for states and localities.”A new report from the Tax Policy Center, a left-leaning think tank, said total state revenues rose by about 17.6 percent last year. State rainy day funds — money that is set aside to cover unexpected costs — have reached “new record levels,” according to the National Association of State Budget Officers.Yet those rosy budget balances may not last if the economy slows, as expected. The Federal Reserve has begun raising interest rates in an attempt to cool economic growth, and there are growing concerns about the potential for another recession. Stocks fell for another session on Monday, with the S&P 500 down 3.2 percent, as investors fretted about a slowdown in global growth, high inflation and other economic woes.Cutting taxes too deeply now could put states on weaker financial footing.The Tax Policy Center said its state tax revenue forecasts for the rest of this year and next year were “alarmingly weak” as states enacted tax cuts and spending plans. Fitch, the credit rating agency, said recently that immediate and permanent tax cuts could be risky in light of evolving economic conditions.“Substantial tax policy changes can negatively affect revenues and lead to long-term structural budget challenges, especially when enacted all at once in an uncertain economic environment,” Fitch said.The state tax cuts are taking place as the Biden administration struggles to respond to rising prices. So far, the White House has resisted calls for a gas tax holiday, though Jen Psaki, the White House press secretary, said in April that President Biden was open to the idea. The administration has responded by primarily trying to ease supply chain logjams that have created shortages of goods and cracking down on price gouging, but taming inflation falls largely to the Fed.The White House declined to assess the merits of states’ cutting taxes but pointed to the administration’s measures to expand fuel supplies and proposals for strengthening supply chains and lowering health and child care costs as evidence that Mr. Biden was taking inflation seriously.“President Biden is taking aggressive action to lower costs for American families and address inflation,” Emilie Simons, a White House spokeswoman, said.The degree to which state tax relief fuels inflation depends in large part on how quickly the moves go into effect.Gov. Laura Kelly backed a bill last month that would phase out the 6.5 percent grocery sales tax in Kansas, lowering it next January and bringing it to zero by 2025. Republicans in the state pushed for the gradual reduction despite calls from Democrats to cut the tax to zero by July.Understand the 2022 Midterm ElectionsCard 1 of 6Why are these midterms so important? More

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    Democrats Push for Agreement on Tax Deduction That Benefits the Rich

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    Lawmakers are coalescing around a deal to suspend a $10,000 cap on state and local tax deductions that was imposed during the Trump administration.WASHINGTON — Democrats were readying an agreement on Tuesday that would repeal a cap on the amount of state and local taxes that homeowners can deduct as part of a broader $1.85 trillion spending bill, a move that could amount to a significant tax cut for wealthy Americans in liberal states.But some liberals quickly balked at the emerging agreement, which would suspend a $10,000 cap on the so-called SALT deduction for five years, removing a limit that Republicans included in their 2017 tax package as a way to pay for cuts for corporations and the rich. The suspension would kick in for deductions related to property taxes and state and local income taxes accrued in 2021 and would run through 2025.If it passes, the deal would be a major concession to a handful of Democrats from high-income states like New York and New Jersey who have insisted on lifting the cap, in order to win their votes for President Biden’s social policy and climate change package.But liberal Democrats have scoffed at the push to include the costly proposal in the domestic policy package, particularly as party leaders have curtailed or eliminated other spending priorities as they pare down a $3.5 trillion blueprint to appease moderate and conservative-leaning Democrats.Senator Bernie Sanders of Vermont, the chairman of the Budget Committee, blasted the repeal on Tuesday as a giveaway to the rich that went against the Democrats’ priorities.“I think there is a compromise to be reached here, a middle ground, which says that for families earning less than $400,000, they can take a complete exemption, but not families earning more than that,” said Mr. Sanders, who had released a blistering statement criticizing the agreement. “What exists is unacceptable, and one way or another it will be dealt with.”It remains unclear whether the agreement would apply broadly or if Democrats planned to impose an income cap to prevent the wealthiest Americans from receiving what amounts to a tax cut.A straight repeal of the cap for every household that claims the deduction would siphon huge amounts of revenue from the federal government: about $90 billion per year, according to budget experts.To get around that, the five-year suspension assumes that the cap is reinstated in 2026 for another five years, allowing Democrats to use a budget sleight of hand to show its removal as revenue neutral in the traditional 10-year window that lawmakers look to when considering a bill’s impact on the federal deficit.Three people with knowledge of the emerging agreement described it on the condition of anonymity and cautioned that discussions were continuing. Details of the talks were first reported by Punchbowl News.With Republicans opposed to Mr. Biden’s domestic policy plan, Democrats must win the support of all 50 senators who caucus with the party and all but three House lawmakers for the plan to become law. That effort is further complicated because Democrats are using an arcane process known as budget reconciliation, which shields fiscal legislation from the 60-vote filibuster threshold in the Senate.Those restrictions mean that any lawmaker, particularly in the Senate, could effectively tank the legislation over his or her priorities, including insisting that the bill repeal SALT. Democrats from the high-income states that have been most affected by the limit have spent the past five years searching for an opportunity to roll it back for their constituents, despite complaints that it would largely benefit the wealthy.House Democrats including Representatives Tom Suozzi of New York, Mikie Sherrill of New Jersey and Josh Gottheimer of New Jersey have made clear that they will not support the broader spending package without a SALT repeal. Mr. Gottheimer wore a large button emblazoned with the words “no SALT, no dice” to votes on Capitol Hill on Tuesday. Senator Chuck Schumer of New York, the majority leader, has also voiced support for getting rid of the cap.“We’ve been fighting for this for years,” Mr. Gottheimer said on Tuesday, adding that reinstating the full deduction would amount to giving “tax relief to families that deserve it and who got hosed in 2017.”Delaying the cap for five years in a 10-year window could effectively allow lawmakers to claim that the proposal would not have an impact on the package’s cost. Yet some Democrats appeared confident that lawmakers would act again in five years to prevent the cap from going back into effect.“It’ll be pretty clear when they get tax relief, it’s going to be hard to take that back,” Mr. Gottheimer said, referring to families in his district.The SALT limit resulted in tax increases for wealthier Americans beginning in 2018, particularly higher earners from high-tax states, and helped Democrats capture some House seats that Republicans previously held in New Jersey, California and elsewhere.The deduction is largely used by wealthy homeowners who itemize their deductions and live in states and cities with high taxes, which tend to be led by Democrats. Democrats accused Republicans of using the cap to pay for other tax cuts for the rich and to penalize liberal states.“My guess is the majority of Americans with a net worth of $50 to $300 million would get a tax cut under the Build Back Better plan with a full repeal of SALT,” Jason Furman, an economist at Harvard who was the chairman of the White House Council of Economic Advisers under President Barack Obama, said on Twitter on Tuesday. “The bill would do more for the super-rich than it does for climate change, childcare or preschool. That’s obscene.”But several lawmakers in the New York and New Jersey delegations have warned that their votes for the domestic policy package hinged on the inclusion of the provision, and Democrats have haggled for months over a possible solution.“We’re still going at it over it,” said Representative Richard E. Neal of Massachusetts, the Democratic chairman of the Ways and Means Committee, who joked on Tuesday that he had earned “a Ph.D. in the SALT deduction because it’s been argued from every perspective I can think of.”The Committee for a Responsible Federal Budget described the repeal of the SALT cap as a “regressive” tax cut, estimating that it would cost $90 billion a year in lost government revenue. The wealthiest would make out the best, with a SALT cap repeal distributing more than $300,000 per household in the top 0.1 percent of earners and only $40 for a middle-income family over the first two years.“With the SALT cap repealed and current tax rates retained, in fact, the reconciliation package might actually offer a net tax cut for most high-income households,” the group said.The right-leaning Tax Foundation estimated that repealing the cap would increase after-tax income of the top 1 percent of earners by 2.8 percent, while the bottom 80 percent would get minimal benefit.Republicans seized on the agreement on Tuesday, accusing Democrats of hypocrisy for backing an “anti-progressive” handout.“First Democrats cut out paid leave,” J.P. Freire, a spokesman for Republicans on the House Ways and Means Committee, said on Twitter. “Now they’re shoveling money to the rich.” More

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    Uber and Lyft Ramp Up Efforts to Shield Business Model

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    Gig economy companies are backing state laws in New York and elsewhere that would cement drivers’ status as contractors in exchange for a union.After California passed a law in 2019 that effectively gave gig workers the legal standing of employees, companies like Uber and Lyft spent some $200 million on a ballot initiative exempting their drivers. More

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    For Clean Energy, Buy American or Buy It Quick and Cheap?

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    President Biden says slowing climate change will create jobs. Tension between unions and environmentalists shows it’s not so simple.Patricia Fahy, a New York State legislator, celebrated when a new development project for the Port of Albany — the country’s first assembly plant dedicated to building offshore wind towers — was approved in January.“I was doing cartwheels,” said Ms. Fahy, who represents the area. But she was soon caught in a political bind.A powerful union informed her that most of the equipment for New York’s big investment in offshore windmills would not be built by American workers but would come from abroad. Yet when Ms. Fahy proposed legislation to press developers to use locally made parts, she met opposition from environmentalists and wind industry officials. “They were like, ‘Oh, God, don’t cause us any problems,’” she recalled.Since President Biden’s election, Democrats have extolled the win-win allure of the transition from fossil fuels, saying it can help avert a climate crisis while putting millions to work. “For too long we’ve failed to use the most important word when it comes to meeting the climate crisis: jobs, jobs, jobs,” Mr. Biden told Congress last month.On Tuesday, his administration gave final approval to the nation’s first large-scale offshore wind project, off Martha’s Vineyard in Massachusetts, again emphasizing the jobs potential.But there is a tension between the goals of industrial workers and those of environmentalists — groups that Democrats count as politically crucial. The greater the emphasis on domestic manufacturing, the more expensive renewable energy will be, at least initially, and the longer it could take to meet renewable-energy targets.That tension could become apparent as the White House fleshes out its climate agenda.“It’s a classic trade-off,” said Anne Reynolds, who heads the Alliance for Clean Energy New York, a coalition of environmental and industry groups. “It would be better if we manufactured more solar panels in the U.S. But other countries invested public money for a decade. That’s why it’s cheaper to build them there.”There is some data to support the contention that climate goals can create jobs. The consulting firm Wood Mackenzie expects tens of thousands of new jobs per year later this decade just in offshore wind, an industry that barely exists in the United States today.And labor unions — even those whose members are most threatened by the shift to green energy, like mineworkers — increasingly accept this logic. In recent years, many unions have joined forces with supporters of renewable energy to create groups with names like the BlueGreen Alliance that press for ambitious jobs and climate legislation, in the vein of the $2.3 trillion proposal that Mr. Biden is calling the American Jobs Plan.But much of the supply chain for renewable energy and other clean technologies is in fact abroad. Nearly 70 percent of the value of a typical solar panel assembled in the United States accrues to firms in China or Chinese firms operating across Southeast Asia, according to a recent report by the Center for Strategic and International Studies and BloombergNEF, an energy research group.Batteries for electric vehicles, their most valuable component, follow a similar pattern, the report found. And there is virtually no domestic supply chain specifically for offshore wind, an industry that Mr. Biden hopes to see grow from roughly a half-dozen turbines in the water today to thousands over the next decade. That supply chain is largely in Europe.Many proponents of a greener economy say that importing equipment is not a problem but a benefit — and that insisting on domestic production could raise the price of renewable energy and slow the transition from fossil fuels.“It is valuable to have flexible global supply chains that let us move fast,” said Craig Cornelius, who once managed the Energy Department’s solar program and is now chief executive of Clearway Energy Group, which develops solar and wind projects.Those emphasizing speed over sourcing argue that most of the jobs in renewable energy will be in the construction of solar and wind plants, not making equipment, because the manufacturing is increasingly automated.But labor groups worry that construction and installation jobs will be low paying and temporary. They say only manufacturing has traditionally offered higher pay and benefits and can sustain a work force for years.Partisans of manufacturing also point out that it often leads to jobs in new industries. Researchers have shown that the migration of consumer electronics to Asia in the 1960s and ’70s helped those countries become hubs for future technologies, like advanced batteries.As a result, labor leaders are pressing the administration to attach strict conditions to the subsidies it provides for green equipment. “We’re going to be demanding that the domestic content on this stuff has to be really high,” said Thomas M. Conway, the president of the United Steelworkers union and a close Biden ally.The experience of New York reveals how delicate these debates can be once specific jobs and projects are at stake.Patricia Fahy, a New York State legislator, met opposition from environmentalists and wind industry officials over efforts to press developers to use locally made parts.Mohamed Sadek for The New York TimesA slip at the Port of Albany was created for ships with oversize cargo from overseas, including components for the wind industry.Mohamed Sadek for The New York TimesLate last year, the Communications Workers of America began considering ways to revive employment at a General Electric factory that the union represents in Schenectady, N.Y., near Albany. The factory has shed thousands of employees in recent decades.Around the same time, the state was close to approving bids for two major offshore wind projects. The eventual winner, a Norwegian developer, Equinor, promised to help bring a wind-tower assembly plant to New York and upgrade a port in Brooklyn.“All of a sudden I focus on the fact that we’re talking about wind manufacturing,” said Bob Master, the communications workers official who contacted Ms. Fahy, the state legislator. “G.E. makes turbines — there could be a New York supply chain. Let’s give it a try.”In early February, the union produced a draft of a bill that would ask developers like Equinor to buy their wind equipment from manufacturers in New York State “to the maximum extent feasible” — not just towers but other components, like blades and nacelles, which house the mechanical guts of a turbine. Ms. Fahy, a member of the Assembly, and State Senator Neil Breslin, a fellow Democrat from the Albany area, signed on as sponsors.Environmentalists and industry officials quickly raised concerns that the measure could discourage developers from coming to the state.“So far, Equinor has gone above and beyond what any other company has done,” said Lisa Dix, who led the Sierra Club’s campaign for renewable energy in New York until recently. “Why do we need more onerous requirements on companies given what we got?”Ms. Dix and other clean-energy advocates had worked with labor unions to persuade the state that construction jobs in offshore wind should offer union-scale wages and representation. And New York’s system for evaluating clean-energy bids already awarded points to developers that promised local economic benefits.Ms. Reynolds, the head of the environmental and industry coalition in New York, worried that going beyond the existing arrangement could make the cost of renewable energy unsustainable.“If it became bigger and more noticeable on electric bills, the common expectation is that political support for New York’s clean-energy programs would erode,” she said.The communications workers sought to offer reassurance, not entirely successfully. “I said to them, ‘We’re trade unionists: We ask for everything, the boss offers us nothing, and then we make a deal,’” Mr. Master said. “‘But I do think there’s no reason why turbines should be coming from France as opposed to Schenectady.’”The final language, a compromise negotiated with the state’s building trades council and passed by the Legislature in April, allows the state to award additional points in the bidding process to developers that pledge to create manufacturing jobs in the state, a slight refinement of the current approach. (It also effectively requires that workers who build, operate or maintain wind and solar plants either receive union-scale wages or can benefit from union representation.)While the law included a “buy American” provision for iron and steel, the state’s energy research and development agency, known as NYSERDA, can waive the requirement.The agency’s chief executive, Doreen Harris, said she was generally pleased that the existing approach remained intact and predicted that the state would have blade and nacelle factories within a few years.Some analysts agreed, arguing that most offshore wind equipment is so bulky — often hundreds of feet long — that it becomes impractical to ship across the Atlantic.“There’s a point at which importation of all goods and services doesn’t make economic sense,” said Jeff Tingley, an expert on the offshore wind supply chain at the consulting firm Xodus.Importing parts has made economic sense for Britain, which had installed more offshore wind turbines than any other country by the start of this year but had made little of the equipment.Suzie Howell for The New York TimesBut that has not always reflected the experience of the United Kingdom, which had installed more offshore wind turbines than any other country by the start of this year but had manufactured only a small portion of the equipment.“Even with the U.K. being the biggest market, the logistics costs weren’t big enough to justify new factories,” said Alun Roberts, an expert on offshore wind with the British-based consulting firm BVG Associates.A 2017 report indicated that the country manufactured well below 30 percent of its offshore wind equipment, and Mr. Roberts said the percentage had probably increased slightly since then. The country currently manufactures blades but no nacelles.All of which leaves the Biden administration with a difficult choice: If it genuinely wants to shift manufacturing to the United States, doing so could require some aggressive prodding. A senior White House official said the administration was exploring ways of requiring that a portion of wind and solar equipment be American-made when federal money was involved.But some current and former Democratic economic officials are skeptical of the idea, as are clean-energy advocates.“I worry about local content requirements for offshore wind from the federal government right now,” said Kathleen Theoharides, the Massachusetts secretary of energy and environmental affairs. “I don’t think adding anything that could potentially raise the cost of clean energy to the ratepayer is necessarily the right strategy.”Mr. Master said the recent legislation in New York was a victory given the difficulty of enacting stronger domestic content policies at the state level, but acknowledged that it fell short of his union’s goals. Both he and Ms. Fahy vowed to keep pressing to bring more offshore wind manufacturing jobs to New York.“I could be the queen of lost causes, but we want to get some energy around this,” Ms. Fahy said. “We need this here. I’m not just saying New York. This is a national conversation.” More