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TNT Tropang Giga and Bolts host foreign teams in EASL

TNT and Meralco are poised to defend Philippine turf when they host their foreign rivals in the East Asia Super League (EASL).

The TNT Tropang Giga will hit the court on Nov. 1 at the Sta. Rosa Sports Complex in Laguna in a return match with Japan’s Chiba Jets that kicks off the home outings for the two PBA ball clubs in the home-and-away regional league.

After the All Saints’ Day gig, the reigning Governors’ Cup titlist will host the Taipei Fubon Braves on Dec. 20 in a yet-to-be-determined venue and Korea’s Anyang on Jan. 24 at the PhilSports Arena.

For the Meralco Bolts, the home swing will be on Dec. 11 in a stadium to be determined against Japan’s Ryukyu Golden Kings and Dec. 27 and Jan. 3 against Korea’s Seoul SK Knights and New Taipei Kings, respectively, both at the PhilSports Arena.

TNT will be fueled by a desire to get back at the Jets, who dealt them a 75-93 loss in the Group A opener in Funabashi Arena last Oct. 11.  The Tropang Giga faded in the second half of that away assignment after keeping it close in the first.

“We’re looking forward to the rematch against Chiba and right now we’re in better shape (than the first match),” TNT assistant coach Sandy Arespacochaga said in yesterday’s Zoom presscon launching the PBA teams’ home games in the EASL.

“We also got two key players back and practicing with us. (Import) Rondae (Hollis-Jefferson) joined us in the game in Japan with no practice and Calvin Oftana is back after missing the first game (while on his post-Asian Games vacation).”

Mr. Hollis-Jefferson, TNT’s reinforcement in the PBA Commissioner’s Cup, is in tandem with Quincy Miller in the EASL.

Debutant Meralco will see action in Group B on the road first — against Ryukyu Golden Kings in Okinawa on Nov. 15 and versus New Taipei Kings in Taiwan two weeks later — before playing at home.

“A lot of challenges are coming up. We know competition is very strong but we’re excited to represent Meralco, the PBA and the Philippines in the EASL,” said Bolts team manager Paolo Trillo, whose team will be reinforced by Sulaiman Braimoh and Prince Ibeh.

EASL Chief Executive Officer Matt Beyer and PBA commissioner Willie Marcial joined the two teams in rolling out the Philippine slates of TNT and Meralco.

“We have so many great memories from last year with the Bay Area Dragons and playing in that seven-game finals series (PBA Commissioner’s Cup against Ginebra). And we’re excited to recreate that atmosphere by bringing top international opponents to play against PBA teams in the EASL,” said Mr. Beyer.

“Fans are excited, teams are excited and most especially the PBA is excited with EASL coming and playing here,” said Mr. Marcial. — Olmin Leyba

San Beda Red Lions start second round with game against Arellano Chiefs

Games Friday
(Filoil EcoOil Arena)
2 p.m. — AU vs San Beda
4 p.m. — SSC-R vs JRU

ONE of the reasons for San Beda University resurgence as an NCAA force in Season 99 is the emergence of Fil-Canadian rookie Jomel Puno.

Mr. Puno has been sensational the last two weeks when he keyed the Red Lions’ four-game win streak and flight to No. 2 after the first round of elimination and should be a marked man entering their game against the Arellano University (AU) Chiefs today (Oct. 27) at the Filoil EcoOil Arena.

In that impressive span, Mr. Puno dropped an average of 13 points and the same number of boards that catapulted San Beda, now with a 7-2 record, back not just in Final Four contention but in the title race as well.

In fact, the Red Lions will have a chance to grab a share of the lead with the Mapua Cardinals (8-2) should they hurdle the Chiefs (1-8) in their 2 p.m. showdown.

And expect the rebounding demon in Mr. Puno to serve as tree of life for San Beda again.

San Beda coach Yuri Escueta, said Mr. Puno was recommended by PBA star Jayson Castro, who has played with Mr. Puno’s dad in the past before their family migrated to Canada. And Mr. Escueta knows rebounding, as well as great shot selection, would spell the difference. — Joey Villar

MPBL North semis kick off in Pampanga today

Games Friday
(Bren Z. Guiao Convention Center, San Fernando, Pampanga)
6 p.m. — Nueva Ecija vs San Juan
8 p.m. — Pampanga vs Caloocan

REIGNING champion Nueva Ecija shifts its title defense tour to higher gear when it tangles with a familiar foe in San Juan in Game 1 of the Maharlika Pilipinas Basketball League (MPBL) North Division semifinals at the Bren Z. Guiao Convention Center in San Fernando, Pampanga.

Game time is at 6 p.m., before the duel between No. 1 Pampanga and No. 4 Caloocan in the other pairing at 8 p.m., with the Rice Vanguards eyeing a headstart in the quick best-of-three semis series.

Seeded No. 2 in the elimination round, the Rice Vanguards took care of business against No. 7 Pasay, 2-0, in the quarterfinals for a good momentum entering a rematch with No. 6 San Juan after their division finals duel last year.

Nueva Ecija, which then swept the eliminations with an absurd 21-0 record, subdued San Juan, 2-1, to advance to the national finals and eventually won it all against Zamboanga, 3-1.

This time, the Rice Vanguards brace for a tougher duel.

“We cannot take them for granted,” warned team owner Bong Cuevas on the Knight, who scored a stunning 2-0 sweep of the third-seeded Makati.

Holding the fort against San Juan as the pressure to defend the crown mounts will not be a walk in the park, noted Mr. Cuevas, but he brims with high hopes that his wards mentored by Jerson Cabiltes are ready to weather any storm.

After all, they’re the defending champions for a reason, well-equipped with experience, maturity and poise.

“The expectations are very high for the team to defend the crown. It’s an expectation that we always. (But) Nueva Ecija is a veteran team. If ever who will be able to handle the pressure, it’s this team,” added Mr. Cuevas.

Spearheading Nueva Ecija’s march are Chris Bitoon, Michael Mabulac, Byron Villarias, Roi Sumang, Renz Palma and Michael Juico with Orlan Wamar, Michael Calisaan, Zach Huang, AC Soberano and Adrian Nocum of San Juan standing in their way. — John Bryan Ulanday

Rangers face D-Backs in unexpected 2023 World Series matchup

THE 2023 World Series will pit two gritty wild-card teams that have proved deadly on the road against each other when the Texas Rangers play host to the Arizona Diamondbacks for Game One on Friday.

Home field advantage may not mean much to the Rangers, who lost three home games but won four at Minute Maid Park in dispatching the defending champion Houston Astros in the American League Championship Series (ALCS).

The Rangers, who are seeking their first World Series championship, started the playoffs red hot, hammering the Tampa Bay Rays in two road games and emerging victorious from the wild card round.

They followed that up by sweeping the 101-win Baltimore Orioles in the Division Series before overcoming the Astros in Game Seven of the ALCS to capture the franchise’s third pennant.

Rangers manager Bruce Bochy will send ace Nathan Eovaldi to the mound for Game One.

The 33-year-old righty was dominant at the start of the year before missing more than a month with a forearm strain. He struggled upon his return but has found his form again in the playoffs.

Mr. Eovaldi will look to silence a Diamondbacks club that has had an equally stunning run to reach Major League Baseball’s biggest stage.

The “D-backs” finished the regular season 16-games behind the Dodgers in the NL West but after sweeping the Brewers in two games in Milwaukee, did the same to heavily-favored Los Angeles in the NLCS.

It appeared they might have run out of steam when they dropped their first two contests to the Philadelphia Phillies but they roared back, winning Games Six and Seven in the manic atmosphere of Citizens Bank Park for the NL pennant. — Reuters

James’ court time

The Lakers showcased their depth in their season opener the other day, and the results were far from satisfactory. Perhaps it was because they faced the vaunted Nuggets, the National Basketball Association’s defending champions and their tormentors in the 2023 Western Conference Finals. And even as the dangers of making hasty judgments with 81 games still left in their schedule cannot be overstated, there can be no glossing over the loss, and, more importantly, the contributions — or, to be more precise, relative lack thereof — of erstwhile top dog LeBron James.

Make no mistake. James was nothing short of outstanding as he began his 21st season in unprecedented fashion. He scored 21 points (on 10-of-16 shooting from the field) along with eight rebounds, five assists, and one steal as the Lakers’ best player on the floor against the Nuggets. Surprisingly, however, he burned rubber for only 29 minutes — a notable departure from his predilection to see action as much as he can. In his post-match presser, he indicated that his court time will be strictly monitored; no doubt, it’s to preserve his soon-to-be-39-year-old body for the long haul.

Which is well and good. Unfortunately, the Lakers did little to prove their capacity to contend in his absence. Per the stat sheet, he was the only starter to have a positive plus-minus; per the eye test, the offense cratered without his direction. They will improve over time, to be sure, but they would need to win as well in the interim. Else, they could succumb to the temptation of chucking their plan to monitor his minutes — developed with his imprimatur and upon the recommendation of personal trainer Mike Mancias.

James loves to win. More importantly, he hates losing. He’s all in on the aim to lessen his load with one contest in the past, but if the setbacks pile up, he will have to resist the urge to do more until the matches really count. After all, he will not want a repeat of his immediate past campaign, when he nursed an injury and ran on fumes as the Lakers got swept from the playoffs. Move one step back now, take two steps forward when it matters. Patience is key, and how much he has may well determine his future.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Israel bombards Gaza as Putin warns conflict could spread beyond Middle East

PEOPLE react as Palestinians search for casualties at the site of an Israeli strike on a residential building in Gaza City, Oct. 25, 2023. — REUTERS

GAZA/JERUSALEM — Israel bombarded the Gaza Strip as it prepared for a ground invasion it says is aimed at annihilating the Palestinian militant group Hamas as Russia warned the conflict could spread beyond the Middle East.

In besieged Gaza humanitarian supplies were critically low, as world powers failed to agree on a lull to the fighting to deliver aid, and residents buried the dead in mass graves as the civilian toll mounted.

In an indication Israel was widening assaults into Gaza that began at the weekend, the military said ground forces attacked multiple targets in the Hamas-ruled enclave on Thursday before withdrawing, in what Army Radio described as the biggest incursion of the current war.

US President Joseph R. Biden, in remarks looking beyond the war, said on Wednesday that the future should include Israeli and Palestinian states side by side.

“Israelis and Palestinians equally deserve to live side by side in safety, dignity and in peace,” Mr. Biden said at a joint press conference in Washington with visiting Australian Prime Minister Anthony Albanese.

Mr. Biden said he believed one reason Iranian-backed Hamas attacked southern Israel on Oct. 7, killing at least 1,400 people and taking scores of hostages, was to prevent normalizing relations between Israel and Saudi Arabia.

Russian President Vladimir Putin warned the conflict could spread beyond the Middle East and said it was wrong that innocent women, children and old people in Gaza were being punished for other people’s crimes.

“Our task today, our main task, is to stop the bloodshed and violence,” said Mr. Putin in a meeting with Russian religious leaders of different faiths, according to a Kremlin transcript.

“Otherwise, further escalation of the crisis is fraught with grave and extremely dangerous and destructive consequences. And not only for the Middle East region. It could spill over far beyond the borders of the Middle East.”

Reflecting concerns the Gaza war may spread, the Wall Street Journal reported that Israel had agreed to delay invading Gaza until US air defence systems can be placed in the region, as early as this week, to protect American forces.

Asked about the report, US officials told Reuters that Washington has raised its concerns with Israel that Iran and Iranian-backed Islamist groups could escalate the conflict by attacking US troops in the Middle East. An Israeli incursion into Gaza could be a trigger for Iranian proxies, they said.

Gaza’s war has already sparked conflict beyond the Palestinian territories. Israeli warplanes struck Syrian army infrastructure on Wednesday in response to rockets fired from Syria, an ally of Iran. Israel has also targeted Syria’s Aleppo airport and Iranian-backed Hezbollah in Lebanon.

Iran, Israel’s arch-enemy, has sought regional ascendancy for decades and backs armed groups in Syria, Lebanon and elsewhere as well as Hamas. It has warned Israel to stop its onslaught on Gaza.

AID PROPOSALS FAIL IN UN SECURITY COUNCIL VOTES
At the United Nations (UN), Russia and China vetoed a US-drafted Security Council resolution calling for pauses in hostilities to allow food, water and medicine to be delivered to Palestinian civilians. The United Arab Emirates also voted no, while 10 members voted in favour and two abstained.

Russia made a rival proposal that advocated a wider ceasefire, but failed to win the minimum number of votes. Israel has resisted both, arguing that Hamas would only take advantage and create new threats to Gaza civilians.

As the death toll mounts in Gaza, Palestinians are burying the unidentified dead in mass graves, with a number instead of a name, residents say. Some families are using bracelets in the hope of finding their loved ones should they be killed.

Israeli retaliatory strikes have killed over 6,500 people, the health ministry in the Hamas-run strip said on Wednesday. Reuters has been unable to independently verify the casualty figures of either side.

Mr. Biden said on Wednesday he had “no confidence in the number that the Palestinians are using” for the death toll, but he did not say why he was skeptical.

In the US, the Council on American-Islamic Relations (CAIR) said it was “deeply disturbed” by Mr. Biden’s comments on the Gaza figures, and called on the president to apologize.

INVASION PREPARATIONS
Israel has vowed to wipe out Hamas, which rules Gaza.

Prime Minister Benjamin Netanyahu said in a televised statement that Israel was “preparing for a ground invasion. I will not elaborate on when, how or how many.”

Israeli tanks and troops are massed on the border with Gaza awaiting orders. Israel has called up 360,000 reservists.

International pressure is growing to delay any invasion of Gaza, not least because of hostages. More than half the estimated 220 hostages held by Hamas have foreign passports from 25 different countries, the Israeli government said. Many were believed to have had dual Israeli nationality. — Reuters

South Korea Halloween crush: Seoul tests crowd safety plan

POLICE OFFICERS walk at the scene where many people died and were injured in a stampede during a Halloween festival in Seoul, South Korea, Oct. 30, 2022. — REUTERS

SEOUL — A knot of people jostled and shoved each other on Wednesday in a narrow alleyway in Seoul, before filing patiently past a barricade of police officers in a crowd control drill held ahead of the one-year anniversary of a deadly Halloween crush.

The exercise, showcasing an artificial intelligence-backed network of nearly 1,000 closed-circuit TV cameras designed to detect and alert against dangerous crowding, was displayed on banks of large screens watched by officials ready to swing into action.

The effort comes after a crowd surge last year led to a crush in a narrow alley in the Itaewon nightlife district, killing 159 people in a disaster blamed on a lack of preparation and crowd control measures, with early calls for help going unanswered.

This year, officials in the South Korean capital said they would work with police, emergency services and local officials to ensure “not a single person gets hurt” during Halloween celebrations.

“The drill focused on how to ensure the safety of citizens by monitoring the situation in real time with the help of cutting-edge science and technology,” said the city’s mayor, Oh Se-hoon.

About 150 volunteers participated in the dry run of an early warning system that will include 909 CCTV cameras in 71 locations by yearend, aiming to analyze crowd movement and density before alerting authorities to signs of danger.

Sixteen areas will be specially monitored by officials ready to intervene and disperse people in response to warnings triggered when three or more individuals are counted in every square meter of any given space.

“It used to be visual assessment in the past, but now we’re operating CCTV… which enables video analysis,” said city safety official Ahn Hyoung-jun, adding that the information gathered would compensate for human error.

The effort was “positive,” said Paek Seung-joo, a specialist in fire and disaster protection at the Open Cyber University of Korea, while warning that preventing large gatherings was critical.

“The fundamental solution is to prevent it from happening in the first place.”

The plan unveiled this week covers just Seoul, rather than the entire nation, he added.

“For that, the central government, not a local government, has to take the lead and come up with a plan to anticipate crowding, manage it, and respond in the event of an emergency.”

Many families of the victims of last year’s disaster say the police investigation left many questions unanswered, while deploring that nobody had been held responsible for the deaths.

The government, which rejected calls to dismiss top officials, has said it had worked hard to set up a system to prevent such disasters and which needed to be properly implemented.

The Seoul anniversary has unnerved authorities elsewhere in the run-up to this year’s celebrations.

In Tokyo, foreign tourists and locals have been urged not to gather at the famed Shibuya scramble crossing in the Japanese capital, which had been a popular spot for Halloween revelers to meet up prior to the COVID-19 pandemic.

“Officials have grown fearful of a disastrous crowd crush similar to the one in the Itaewon district in Seoul, South Korea,” Shibuya city officials said in a statement.

The safety campaign has involved a ban on street drinking over the Halloween weekend, while videos posted on social media urge: “On Halloween night, everyone should stay away from Shibuya.” — Reuters

Police scour Maine for man sought in Maine mass shootings

STOCK PHOTO | Image by kjpargeter from Freepik

HUNDREDS of police fanned out across the state of Maine hunting for a man wanted in connection with mass shootings at a bar and a bowling alley in the town of Lewiston, as news outlets reported a death toll ranging from 16 to 22, with dozens more wounded.

Officials said there were multiple casualties but declined to provide figures.

State and local police identified Robert R. Card, 40, who reportedly had been committed to a mental health facility over the summer, as a person of interest in the case. Earlier, they posted on Facebook photographs of a bearded man in a brown hoodie and jeans at one of the crime scenes, holding what appeared to be a semi-automatic rifle in the firing position.

“We have literally hundreds of police officers working around the state of Maine to investigate this case to locate Mr. Card, who is a person of interest,” Maine Public Safety Commissioner Mike Sauschuck told a news conference.

Police found a white SUV they believe Robert R. Card drove to the town of Lisbon, about 7 miles (11 km) to the southeast, and Mr. Sauschuck said people were asked to remain indoors in both Lewiston and Lisbon.

Several media reported that a Maine law enforcement bulletin identified Mr. Card as a trained firearms instructor and member of the US Army reserve who recently reported that he had mental health issues, including hearing voices. It also said he threatened to shoot up a National Guard base. “Card was also reported to have been committed to mental health facility for two weeks during summer 2023 and subsequently released,” said the notice from the Maine Information & Analysis Center.

Reuters could not authenticate the bulletin. The Associated Press reported it was circulated to law enforcement officials.

The army did not immediately respond to requests for information about Mr. Card, including details on his service record.

The bloodshed rocked the largely rural state of Maine in the northeastern corner of the US bordering Canada.

Police said gunfire first broke out shortly before 7 p.m. local time. The bar and the bowling alley are about four miles (6.5 km) apart.

Lewiston is a former textile hub and town of 38,000 people in Androscoggin County about 35 miles (56 km) north of Maine’s largest city, Portland.

“A recreation center. A bowling alley. A neighborhood bar. Places Americans frequent and should feel safe… these are the crime scenes of multiple shootings tonight in Maine,” said Kris Brown, president of Brady, a gun safety advocacy group, in a statement.

Maine lacks several major types of gun safety laws, including assault weapons regulation, universal background checks, and “red flag” laws that allow law enforcement to temporarily disarm people legally deemed dangerous, according to Brady.

At a reunification center in Lewiston’s “sister city” Auburn, just across the Androscoggin River, some families were discovering that relatives who had been at the bar and bowling alley had been killed in the shooting, Auburn Mayor Jason Levesque told reporters.

Officials were interviewing witnesses of the shooting “of all ages” at an undisclosed safe location on Wednesday night, Levesque said.

President Joseph R. Biden was been briefed and will continue to receive updates, a US official said in Washington.

The president spoke by phone individually to Maine Governor Janet Mills, Senators Angus King and Susan Collins, and Congressman Jared Golden about the shooting in Lewiston and offered full federal support in the wake of the attack, the White House said.

The range of estimated fatalities would be on par with the number of homicides that normally occur in Maine in any given year. The number of annual homicides in the state has fluctuated between 16 and 29 since 2012, according to Maine State Police.

The number of US shootings in which four or more people were shot has surged since the COVID-19 pandemic began in 2020, with 647 occurring in 2022 and 679 projected to occur in 2023, based on trends as of July, according to data from the Gun Violence Archive.

The deadliest modern US mass shooting on record is the massacre of 58 people by a gunman firing on a Las Vegas country music festival from a high-rise hotel perch in 2017. — Reuters

China says US has no right to get involved in problems between it and Philippines 

PRESIDENT Ferdinand R. Marcos, Jr. and US President Joseph R. Biden hold a bilateral meeting on September 22, 2022 in New York, USA. — OFFICE OF THE PRESS SECRETARY

BEIJING — The United States does not have the right to get involved in problems between China and the Philippines, the Chinese foreign ministry said on Thursday at a regular press briefing.

“The US is not party to the South China Sea issue, it has no right to get involved in a problem between China and the Philippines,” said ministry spokesperson Mao Ning in addressing a question on the US saying it will defend the Philippines.

“The US promise of defending the Philippines must not hurt China’s sovereignty and maritime interests in the South China Sea, and it also must not enable and encourage the illegal claims of the Philippines,” Ms. Mao said.

US President Joe Biden said on Wednesday at the White House that America’s commitment to Philippines defense remains “iron-clad,” after accusing China of acting “dangerously and unlawfully” in the South China Sea.

“Any attack on the Filipino aircraft, vessels, or armed forces will invoke … our Mutual Defense Treaty with the Philippines,” Mr. Biden said in remarks during a joint meeting with Australia’s prime minister.

China and the Philippines recently have had several high-profile skirmishes in the South China Sea, most notably in disputed waters around the Second Thomas Shoal, part of the Spratly Islands.

Last Sunday, a Chinese vessel collided with a Philippine boat, with Manila condemning “in the strongest degree” the “dangerous blocking maneuvers” of the vessel. — Reuters

BSP delivers off-cycle 25-bps rate hike

BANGKO SENTRAL ng Pilipinas Governor Eli M. Remolona, Jr. — BANGKO SENTRAL NG PILIPINAS

The Bangko Sentral ng Pilipinas (BSP) took off-cycle action today, hiking benchmark interest rates by 25 basis points (bps) to 6.5% to re-anchor inflation expectations.

BSP Governor Eli M. Remolona Jr. said the Monetary Board raised its target repurchase rate to 6.50%, effective immediately, from 6.25%.

Rates on the overnight deposit and lending facilities were also hiked by 25 bps to 6% (from 5.75%) and 7% (from 6.75%), respectively.

The BSP’s off-cycle rate hike came ahead of its regular policy meeting scheduled on Nov. 16.

With the latest hike, the Monetary Board has raised benchmark interest rates by a total of 450 bps since May 2022.

This was also the central bank’s second unscheduled policy move during this tightening cycle.

Under the leadership of then-BSP Governor Felipe M. Medalla, the Monetary Board surprised markets by raising rates by 75 bps to 3.25% on July 14, 2022. — Keisha B. Ta-asan

Emerging markets need $1.5 trillion to make buildings greener — IFC

VICTOR-UNSPLASH

LONDON — Emerging markets will need $1.5 trillion in investment before 2035 to make new and existing buildings environmentally friendly and avoid a jump in climate-damaging emissions, a top economist at the World Bank’s private finance arm told Reuters.

Of that $1.5 trillion, China accounts for $1.33 trillion, reflecting its size and urbanisation, and Latin America and the Caribbean, Asia, Europe and Africa most of the rest, the International Finance Corporation said in a new report.

The funds would be used for investments in electrification of older inefficient buildings with cleaner energy, and the construction of energy-efficient new buildings, with low- emission material.

The construction industry globally generates about two-fifths of all carbon emissions and that number is rising amid a building boom, making it central to efforts to curb carbon emissions and limit global warming to 1.5 degrees Celsius. 

Speaking ahead of the release of the IFC’s report on Wednesday suggesting ways to accelerate efforts, Susan Lund, Vice President for Economics and Private Sector Development, said there were “low-hanging fruit” technologies to cut emissions. 

Adopting them could reduce construction-related emissions 13% from current levels, or 23% below where they would otherwise be, IFC said the report.

More than half the reductions would come from emerging markets, through solutions such as powering buildings using cleaner energy, making them more energy-efficient and using low-emission materials in their construction. 

While many technologies exist to slash construction-related emissions, Lund said weak policy incentives, limited finance and poor information about energy efficiency have prevented broader adoption in developing countries.

“They are in the midst of a massive construction boom that is only going to get bigger in the next 10 to 15 years,” Lund told Reuters.

“Here is an opportunity to do things differently,” she said, noting that it was better to build greener buildings today than retrofit later, as happens in richer countries.

Limited information about the efficiency of buildings is a major problem, she said, pointing to 110 countries without energy efficiency building codes.

Unlike other hard-to-abate activities, however, building more responsibly was “achievable” and required “very negligible” costs to GDP, Lund added, although decarbonizing construction value chains fully would be much tougher.

IFC has invested $10 billion into construction projects in the developing world that meet its energy efficiency criteria, while leveraging another $60 billion from investors including development finance institutions and project developers, Lund said. — Reuters

Ford, UAW reach tentative deal to end strike including record pay raise

New vehicle sales climbed by 22% in August. — REUTERS

The United Auto Workers (UAW) union reached a tentative labor deal on Wednesday with Ford Motor, the first of Detroit’s Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September.

The proposed accord, which UAW‘s leadership must still approve, provides a 25% wage hike over the 4-1/2-year contract, starting with an initial increase of 11%.

The Ford deal, which could help create a template for settlements of parallel UAW strikes against General Motors and Chrysler parent Stellantis, would amount to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW said.

“We told Ford to pony up and they did,” Fain said in a video post on Facebook, adding that the strike at Ford “has delivered”.

In addition to the general wage hike, Fain said the lowest-paid temporary workers would see raises of more than 150% over the contract term and employees would reach top pay after three years. The union also won the right to strike over future plant closures, he said.

The UAW also succeeded in eliminating lower-pay tiers for workers in certain parts operations at Ford – an issue Fain highlighted from the start of the bargaining process, wearing T-shirts with the slogan “End Tiers.”

The Ford contract would reverse concessions the union agreed to in a series of contracts since 2007, when GM and the former Chrysler were skidding toward bankruptcy, and Ford was mortgaging assets to stay afloat.

“We know it breaks records,” Fain said in a video address Wednesday night. “We know it will change lives. But what happens next is up to you all.”

The Detroit automakers have argued that the UAW‘s demands will significantly raise costs and hobble their electric vehicle ambitions, putting them at a disadvantage when compared to EV leader Tesla and foreign brands such as Toyota Motor, which are non-unionized.

The UAW was preparing to strike at a key Ford facility in Dearborn this week if it had not reached agreement after striking at additional GM and Stellantis facilities this week.

But in an unexpected move that adds pressure on GM and Stellantis, the UAW told Ford workers now on strike to return to their jobs during the ratification process. That means production of Ford Super Duty pickups, Ford Bronco and Explorer SUVs and Ranger trucks could restart this week.

Ford, confirmed the news. “We are pleased to have reached a tentative agreement on a new labor contract with the UAW covering our U.S. operations,” Ford CEO and President Jim Farley said in a statement. Ford shares rose 2% in after-hours trade.

In statements, GM and Stellantis said Wednesday they are working to secure agreements as soon as possible.

“This lays the groundwork for the next two contracts and they should fall in line fairly quickly because all three were within a narrow gap of each other,” Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions.

The UAW ratcheted up pressure on the automakers by striking at each company’s most profitable plant – GM’s Arlington, Texas assembly plant, Ford‘s Kentucky heavy-duty pickup factory and Stellantis’ Ram pickup plant in Sterling Heights, Michigan.

The total economic loss from the auto workers’ strike has reached $9.3 billon, the Anderson Economic Group said earlier this week.

“I think this will be a positive for the stocks,” said portfolio manager Tim Piechowski at ACR Alpine Capital Research, which has $250 million in investment in GM. Detroit Three shares currently reflect a scenario worse than the terms of the tentative agreement, he said.

 

BARGAINING TABLE

The UAW‘s campaign for a record contract converged with union efforts in Hollywood and at delivery giant UPS to win big pay increases. It also became the focus of attention by U.S. President Joe Biden and Republican rivals who see Michigan and other auto states as pivotal to their 2024 campaign strategies.

Biden joined Fain on a picket line last month, and praised the tentative agreement in a statement Wednesday night as a “testament to the power of employers and employees coming together to work out their differences at the bargaining table.”

Absent from Fain and Browning’s summary of the contract terms Wednesday was mention of future pay and unionization at new joint-venture electric vehicle battery factories the Detroit Three are building with Asian partners.

Because they are owned by separate corporate entities, the automakers did not have to include those factories in this round of bargaining. Fain had pushed for assurances that battery plant wages would be comparable to wages at assembly plants, and expressed concern that UAW jobs at Detroit Three combustion powertrain plants would be lost over time to non-union battery operations.

Nonetheless, Harley Shaiken, labor professor at the University of California, Berkeley, saw the deal as one with far-reaching implications. “This is a set of negotiations, historically, where gains made in Detroit would be viewed and adapted by many other industries across the economy,” he said.

Former GM shareholder Jeffrey Scharf of Act Two Investors said the bottom line for union chief Fain depended on his ability to expand the union.

“If they can use this as a lever to organize Tesla and companies like that, he’s brilliant. If they fail to organize the other companies and the differential causes jobs to go out of Detroit and to the other companies, then he’s a failure,” Mr. Scharf said. – Reuters