ExxonMobil is the world’s largest producer of polymers, the key ingredient in single-use plastics. AG Bonta says the company “has been deceiving Californians for half a century through misleading public statements and slick marketing promising that recycling would address the ever-increasing amount of plastic waste ExxonMobil produces.”

Catch our chat on California’s lawsuit against ExxonMobil for recycling fraud!

The lawsuit alleges that ExxonMobil worked to convince the public that all plastics were recyclable, when the majority are not, either because it is not technically possible or because it is not economically feasible. As a result, the lawsuit says only 5% of plastic is recycled in the US, and that figure has never gone above 9%.

More recently, ExxonMobil continues to deceive the public by touting “advanced recycling” as the solution to the plastic waste and pollution crisis. “Advanced recycling” (also known as “chemical recycling”) is an umbrella term used by the plastics industry to describe a variety of heat or solvent-based technologies that can theoretically convert certain types of plastic waste into petrochemical feedstock, which can be used to make new plastic. Under its “advanced recycling” program, ExxonMobil uses heat to break down plastic waste. ExxonMobil promotes its “advanced recycling” program as a breakthrough in technology that will make plastics sustainable but hides important truths about its technical limitations, including that:

• The vast majority—92 percent—of plastic waste processed through ExxonMobil’s “advanced recycling” technology does not become recycled plastic, but rather primarily fuels,
• The plastics that are produced through ExxonMobil’s “advanced recycling” process contain so little plastic waste that they are effectively virgin plastics deceptively marketed as “circular” (co-opting a term typically understood as a full circle of sustainable reuse, where waste becomes raw material) and sold at a premium,
• ExxonMobil’s “advanced recycling” process cannot handle large amounts of post-consumer plastic waste such as potato chip bags without risking the safety and performance of its equipment,
• Plastics produced through ExxonMobil’s “advanced recycling” program, in ExxonMobil’s best case scenario, will only account for less than one percent of ExxonMobil’s total virgin plastic production capacity, which continues to grow.

The AG’s office says ExxonMobil’s “advanced recycling” program amounts to a PR stunt designed to keep people buying single-use plastics while hiding their true impact on the environment.

“Plastics are everywhere, from the deepest parts of our oceans, the highest peaks on earth, and even in our bodies, causing irreversible damage—in ways known and unknown—to our environment and potentially our health,” said Attorney General Bonta. “For decades, ExxonMobil has been deceiving the public to convince us that plastic recycling could solve the plastic waste and pollution crisis when they clearly knew this wasn’t possible. ExxonMobil lied to further its record-breaking profits at the expense of our planet and possibly jeopardizing our health. Today’s lawsuit shows the fullest picture to date of ExxonMobil’s decades-long deception, and we are asking the court to hold ExxonMobil fully accountable for its role in actively creating and exacerbating the plastics pollution crisis through its campaign of deception.”

The lawsuit should come as no surprise, especially given ExxonMobil recently made the International Trade Union Confederation’s (ITUC) list of the top seven countries that undermine democracy worldwide. ExxonMobil was #3 on the list, specifically for its decades-long practice of hiding its own research on the true environmental impact of fossil fuels.

The offer includes a 30% wage increase over four years—up from the 25% that was previously rejected—along with a ratification bonus of $6,000, reinstatement of annual bonuses, and enhanced retirement contributions. However, the proposal fell short of the union’s demand for a 40% wage increase and the reinstatement of the traditional pension plan, which Boeing scrapped in 2014.

Tune in to Our Discussion on Boeing’s ‘Best and Final’ Offer to Striking Workers!

The union has not yet committed to a vote on the new contract, and with little sign of an imminent resolution, Boeing faces mounting financial pressures, while union members grow increasingly entrenched on the picket lines.

The Offer on the Table

Boeing’s “best and final” offer reflects a critical attempt to end a costly and protracted strike. The company’s original proposal, which included a 25% wage hike over four years, was rejected by a staggering 94.6% of union members, leading to the first strike since 2008. The current offer, which represents a slight improvement, includes a four-year wage increase of 30%, spread across an initial 12% bump followed by three annual increases of 6%. In addition, Boeing has doubled the ratification bonus from $3,000 to $6,000 and restored the Aerospace Machinists Performance Program (AMPP), which it had sought to eliminate in earlier negotiations.

We heard our IAM-represented employees and are offering bigger pay raises and more money today. This morning we presented our Best and Final Offer to IAM 751 & W24.

Learn more about the contract offer in the video below. pic.twitter.com/k1yRJEglPF

— Boeing in Washington (@BoeingWA) September 23, 2024

“Our offer reflects a genuine attempt to meet the union’s concerns while also keeping the company financially stable,” said a Boeing spokesperson. “We are committed to our workers and believe this offer is both fair and sustainable.”

Despite the enhancements, the proposal still falls short of the union’s demand for a 40% wage increase and the restoration of the pension plan. Brian Bryant, President of IAM, said, “Boeing executives have always known they could do better, and this proposal shows that the workers were right all along. However, there are still critical areas where Boeing has missed the mark.”

Union Reaction: Frustration and Defiance

For many machinists, the latest offer has failed to address their core concerns—primarily the pension and wage increases that keep pace with the rising cost of living in the Pacific Northwest.

“This is complete garbage,” said one machinist on the picket line in Everett, Washington. “They think they can throw some money at us and we’ll just take it, but they need us. If they want skilled labor, they’ll have to do better.”

Boeing’s decision not to reinstate the pension plan has been a significant sticking point. A machinist from the Renton facility noted, “We sacrificed a lot when they took away the pension in 2014. Now they expect us to accept a 401(k) match that doesn’t come close to what we used to have. That’s not going to cut it.”

The union has also expressed frustration with Boeing’s decision to bypass traditional negotiating channels by sending the offer directly to the members. “This is a non-negotiated offer from Boeing,” the union said in a statement. “They’re trying to divide our members, but it won’t work. We’re standing strong.”

Day 11 – Strike Update
September 23, 2024

Attention IAM 751 Members,

This morning, at 9 AM, Boeing notified us of what they call an "improved best and final offer." While your Negotiating Team was still reviewing the details, Boeing took it upon itself to disrespect our entire… pic.twitter.com/UMeXEjGf7c

— IAM Union District 751 (@IAM751) September 24, 2024

Financial Pressure Mounts on Both Sides

The strike, which began on September 13, has already cost Boeing nearly $1 billion, according to some estimates. The company is burning through cash at a rate of $50 million to $100 million per day, a financial strain that is likely to worsen if the strike continues. Boeing’s largest commercial plane programs, including the 737 Max, 777, and 767, have all seen production halted. Although work on the 787 continues at Boeing’s non-unionized facility in South Carolina, the strike’s impact is being felt across the company’s operations.

Breaking: @Boeing significantly boosts offer seeking to end IAM strike pic.twitter.com/IYyWm5caRb

— David Shepardson (@davidshepardson) September 23, 2024

“We’re facing significant financial challenges,” Boeing CEO Kelly Ortberg said in a memo to employees. “We’ve had to implement furloughs, freeze hiring, and make difficult decisions to preserve cash flow. This strike is costing us, and we need to resolve it quickly.”

The union, however, remains undeterred. Many machinists have turned to temporary jobs in the tight labor market to make ends meet, taking advantage of gig work and side jobs to supplement their income. “I’ve been driving for Uber and picking up warehouse shifts,” one machinist said. “We’re prepared to sit this out as long as it takes.”

What’s at Stake for Boeing?

Beyond the immediate financial hit, Boeing risks long-term damage to its reputation and credit rating. Bank of America has warned that if the strike persists, the company’s credit rating could be downgraded to junk status. “This strike is a pivotal moment for Boeing,” said Ron Epstein, an aerospace analyst. “If they can’t reach a deal soon, it will impact not just their bottom line, but also their ability to deliver planes on time, which could have a ripple effect on their relationships with airlines.”

Boeing has already implemented cost-saving measures, including temporary furloughs of non-union employees, a hiring freeze, and cuts to executive pay. Additionally, the company has halted non-essential business travel, eliminated first-class tickets for employees, and paused marketing and donations. These moves reflect the seriousness of the situation, but they also highlight the limited options Boeing has to manage its cash flow without resuming production.

The Path Forward

As the strike enters its second week, both Boeing and the union face mounting pressure to reach a resolution. Boeing has set a deadline of September 27 for the union to ratify the contract, but it remains unclear whether the membership will accept the offer or continue the strike.

“The ball is in their court,” said a Boeing executive who spoke on condition of anonymity. “We’ve put forward a fair and reasonable offer, and we’re hopeful that the union will come to the table and agree to end the strike.”

However, union leaders remain cautious. “We’re reviewing the offer carefully, and we’re going to make sure that our members have all the information they need to make an informed decision,” Bryant said.

For now, the standoff continues, with no clear end in sight. Boeing, one of the world’s largest aerospace companies, finds itself in a battle that could have profound implications for its financial future and its relationship with the workforce that builds its planes.

As one union member put it, “We’re ready to go back to work, but not until we get the contract we deserve.”

News broke Friday that Qualcomm is investigating a friendly takeover of Intel, a deal that could expand Qualcomm’s business while simultaneously bailing out the beleaguered chipmaker. While early speculation questioned if Intel would even entertain talks, a report by Bloomberg suggests that Intel is open to a deal.

Broadcom eyeing Intel? Huge potential business shift—listen now!

Interestingly, the report also indicates that Broadcom was interested, but it seems that the company is not pursuing a deal. Interestingly, a regulatory scrutiny is likely significant roadblock for Broadcom, as US authorities blocked an attempted Broadcom takeover of Qualcomm in 2018.

At the time, the Trump administration blocked Broadcom’s hostile takeover attempt of Qualcomm because the company was based in Singapore, and its ties to China were considered a national security threat for the US. The company eventually moved its headquarters to Delaware in an effort to circumvent future scrutiny, but an acquisition of the size and importance of Intel could raise old questions about Broadcom’s connections to China and whether it still poses a security risk.

Given how Broadcom has handled its acquisition of VMware, and the industry-wide discontent with the company’s decisions, it’s a safe be the industry is relieved that a Broadcom takeover of Intel is unlikely.

This article looks at the key drivers behind the strike, examines the positions of both Boeing’s leadership and its workforce, and explores the broader implications for the company, its employees, and the aerospace industry as a whole.

Worker Demands: More Than Just Pay Raises

The strike stems from a clear disconnect between Boeing’s leadership and its workforce. At the heart of the matter is the labor contract that Boeing workers, represented by the International Association of Machinists and Aerospace Workers (IAM), overwhelmingly rejected. While union leaders endorsed the contract—which offered a 25% wage increase over four years—the rank-and-file workers felt the offer fell far short of addressing their long-standing concerns.

“This strike isn’t just about wages; it’s about fairness and the future,” said Phet Bouapha, a Boeing mechanic and shop steward, reflecting a sentiment that has spread across the picket lines. Workers are demanding a 40% wage increase, citing the soaring cost of living in the Seattle area. “A 25% increase sounds good, but in reality, it barely scratches the surface when inflation is factored in,” Bouapha added. “We’ve been asked to give up too much for too long, and this is where we draw the line.”

Inflation in the region has jumped 44% since 2008, while wages for mid-level Boeing workers have not kept pace, according to Andrew Hedden, associate director of the Harry Bridges Center for Labor Studies at the University of Washington. “The workers here are feeling the effects of a Seattle economy that has outpaced their earnings. They’re under enormous pressure to maintain a basic standard of living,” Hedden explained.

But wages aren’t the only sticking point. The return of a pension plan—something Boeing ended a decade ago—has emerged as a key demand for workers, especially long-serving employees who feel betrayed by its cancellation. “Boeing used to offer long-term security, a guarantee of stability in retirement. That’s been stripped away,” said Jon Holden, president of District 751 of the IAM. “The company’s additional 401(k) contributions are not enough to fill the gap. Our members want pensions restored.”

Boeing’s Financial Struggles and Its Position

While workers are demanding more, Boeing’s leadership finds itself in an increasingly precarious financial position. The company has been grappling with production delays, regulatory scrutiny, and a heavy debt burden. The two fatal crashes of Boeing’s 737 MAX aircraft in 2018 and 2019 still cast a shadow over the company, exacerbated by the COVID-19 pandemic, which severely impacted global air travel and hurt demand for new aircraft.

“We’re already dealing with massive challenges across our production lines and in our financial health,” said Brian West, Boeing’s Chief Financial Officer. “The strike adds an additional layer of risk to our recovery, and every day of production delays further jeopardizes our ability to regain stability.”

Boeing, which reported a cash outflow of over $7 billion in the first half of this year, is under intense pressure to get back to production as soon as possible. Wall Street analysts estimate that the strike could cause a cash outflow of over $1 billion a month, pushing Boeing even closer to a credit downgrade. “A prolonged strike would likely result in Boeing’s debt being downgraded to junk status,” said Sheila Kahyaoglu, an analyst at Jefferies. “This would significantly raise borrowing costs for the company at a time when they can least afford it.”

Kelly Ortberg, Boeing’s new CEO, who took over just five weeks before the strike began, faces the daunting task of balancing the need to meet worker demands while preventing Boeing’s financial situation from further deteriorating. “His immediate focus is on resetting Boeing’s relationship with its workforce,” said West. “We have to rebuild trust and come to a solution quickly.”

However, workers remain firm in their belief that Boeing can afford to meet their demands. “Boeing isn’t a struggling company—they’re an effective duopoly with Airbus,” Holden remarked. “They’ve got $516 billion in backlog orders, and the revenue from those orders is expected to pour in over the next decade. They can afford to pay us what we’re worth.”

The Role of Federal Mediators

With both sides far apart, federal mediators have stepped in to facilitate negotiations between Boeing and the IAM. While mediation often helps resolve labor disputes, the sheer scale of the disagreements—particularly over wages and retirement benefits—may prolong the process.

Boeing’s leadership is open to resuming talks. “We’re committed to getting back to the table to reach an agreement that benefits our people and their families,” said Ortberg. Still, the path to an agreement will likely require more than incremental concessions. Workers are not willing to settle for small gains, especially after years of what they perceive as sacrifices in the wake of Boeing’s previous financial crises.

“We’ve already compromised too much in past negotiations,” said Ruben Tishchuk, a mechanic who has worked at Boeing for six years. “This time, we’re willing to stay out as long as it takes.”

Analysts like Cai von Rumohr of TD Cowen predict the strike could stretch for as long as 50 days. “The union feels empowered by Boeing’s weak financial position and believes it has leverage,” von Rumohr said. “Boeing, meanwhile, is trying to avoid further damage to its balance sheet. Neither side wants to blink first.”

Broader Implications for Boeing and the Aerospace Industry

The stakes extend far beyond the confines of Boeing’s manufacturing plants. The strike threatens to derail the company’s long-term recovery plans, further strain its supply chain, and disrupt global aerospace production.

Suppliers, who have only just started to recover from the effects of the pandemic and the grounding of the 737 MAX, are particularly vulnerable. “A prolonged strike could cripple smaller parts makers that rely heavily on Boeing,” said Ronald Epstein, an aerospace analyst at Bank of America. “Boeing has already slowed its parts orders due to production delays. Now, those suppliers are seeing orders dry up again, just as they were starting to stabilize.”

Boeing’s customers, including major airlines, are also feeling the effects. Airline executives, already frustrated with delayed deliveries, are concerned that the strike will exacerbate those delays. “We’ve been waiting months for new planes, and this strike is only going to make things worse,” said one executive who spoke anonymously.

While the strike is undoubtedly causing short-term disruptions, some labor experts argue that it could have long-term benefits for Boeing and the broader economy. “If the workers succeed in securing better wages and retirement benefits, that money will flow back into the local economy,” said Hedden. “In the long run, these gains could boost consumer spending and help stabilize the region.”

What Will It Take to End the Strike?

Reaching a resolution will likely require Boeing to make meaningful concessions on both wages and retirement benefits. The IAM has been preparing for this contract battle for years, and its members are prepared for a long fight. “We’ve saved up for this moment,” Tishchuk said. “We knew Boeing would push back, but we’re in this for the long haul.”

While analysts like Kahyaoglu predict that Boeing will eventually make the necessary concessions to avoid further financial damage, the timeline for a resolution remains uncertain. “If Boeing’s leadership is serious about restoring trust and rebuilding their relationship with the workforce, they’ll need to offer more than just incremental increases,” Kahyaoglu remarked.

Von Rumohr, however, warns that time is not on Boeing’s side. “Every day the strike drags on is another day that Boeing risks falling further behind Airbus, both in terms of production and financial stability.”

A Defining Moment for Boeing

The Boeing strike is not just a labor dispute—it’s a pivotal moment in the company’s history. As Boeing navigates its way through production delays, regulatory challenges, and financial instability, its future success depends on how it handles the strike and the broader worker unrest within its ranks.

The resolution of this strike will likely shape Boeing’s trajectory for years to come, both in terms of its financial health and its relationship with its workforce. As both sides prepare for continued negotiations, the question remains: Who will blink first?

The answer could redefine Boeing’s corporate culture, its place in the global aerospace industry, and the livelihoods of thousands of workers whose futures hang in the balance.

A Decade of Eroded Trust

The Boeing strike represents more than just a disagreement over wage increases; it is a culmination of years of perceived mistreatment and unmet promises. Workers argue that the proposed deal does not adequately address the losses and concessions made over the past decade. “It’s about clawing back ground we lost from a decade of weakness,” explained a Boeing machinist. “We’ve been living on crumbs from contract extensions, and this is the first time we’ve been able to regroup and demand a real, substantial contract.”

Many workers have felt that the company’s management has systematically eroded their benefits, compromising their long-term job security and financial stability. “The last ten years have seen constant cuts and concessions,” noted another worker. “We’re finally in a position where we can stand up and say enough is enough.”

Boeing workers go on strike for pay increase…

That is what is being told I’m betting it’s the fact the planes are complete trash now with the whole DEI BS!

pic.twitter.com/glhj2e11cU

— Mr.Action (@NewsAction24_7) September 13, 2024

The dissatisfaction extends beyond immediate financial terms. The loss of traditional pensions and a series of job transfers to non-union vendors have further fueled frustration. “The pensions were a major part of why people stayed at Boeing,” one worker emphasized. “The company promised stability and security, and now those promises have been broken.”

Examining the Proposed Deal

On the surface, the proposed contract may seem generous, but a closer examination reveals several issues that have contributed to the strike. The 25% wage increase offered over four years appears substantial, but when scrutinized in the context of inflation and real wage growth, its value diminishes. “A 25% wage increase sounds impressive until you factor in inflation,” remarked one worker. “Given the ~20% compounded inflation over recent years, a 5% increase spread over four years is far from adequate.”

Another point of contention is the removal of the annual bonus, which has been a significant part of workers’ compensation. “The deal’s highlights are misleading,” said a union representative. “Removing the yearly bonus effectively reduces the wage increase to around 11% over four years. This doesn’t account for the inflation or the increasing cost of living.”

The proposed deal also fails to address key issues such as job security and working conditions. “The offer didn’t include protections for several jobs being transferred to vendors,” highlighted a worker. “Jobs like janitorial services and forklift drivers, which are crucial to our operations, are now at risk.”

Strategic Motivations and Long-Term Goals

Beyond immediate financial concerns, the strike is also a strategic maneuver to secure a more favorable and long-lasting agreement. Workers and union leaders are using this opportunity to set a new precedent for labor negotiations, hoping to achieve a landmark deal that could benefit workers across the industry. “With all eyes on Boeing right now, the union sees this as a chance to make a significant impact,” said an industry analyst. “A successful strike could redefine labor standards and set a new benchmark for worker compensation and job security.”

The timing of the strike, coupled with the company’s current high-profile status, has led some to speculate that it is part of a broader strategic play. “This strike could be seen as an opportunity to leverage Boeing’s current vulnerabilities for a more substantial deal,” observed another commentator. “It’s about more than just the immediate terms; it’s about reshaping the industry’s approach to labor relations.”

Management’s Role and the Bigger Picture

The frustration with Boeing’s management is a central theme in the strike. Workers have criticized the company’s leadership for prioritizing cost-cutting measures and short-term profits over long-term employee welfare. “For years, Boeing leadership has treated its employees and products like commodities,” one worker stated. “The IAM 751 has sent a clear message to the board and the C-suite: the company’s offer falls far short of what workers deserve.”

Critics argue that the company’s focus on outsourcing and cost reduction has undermined its commitment to quality and employee satisfaction. “Boeing has been chasing profits at the expense of its workforce,” noted a former supplier. “The quality issues and the mistreatment of employees are a direct result of this flawed approach.”

Future Implications and Industry Impact

The outcome of this strike could have significant implications not only for Boeing but for the broader labor market. A successful resolution could lead to improved standards for worker compensation and job security, potentially influencing negotiations in other industries. “If the union can secure a favorable deal, it will send a strong message to other companies about the importance of fair labor practices,” predicted a labor expert. “It could pave the way for a new era of labor relations.”

However, the strike also raises concerns about the future direction of Boeing. Some speculate that the company may continue to shift work away from unionized facilities as part of a broader strategy to reduce costs. “The end game could be divestiture,” suggested a commentator. “As Boeing regionalizes and internationalizes, it may become easier to break up the company and sell off parts, which could benefit stockholders but harm workers and the industry.”

In conclusion, the Boeing strike is not merely about the terms of a new contract; it is a reflection of broader issues related to labor relations, management practices, and industry standards. The workers’ demands highlight deep-seated grievances and a desire for a fair and meaningful agreement. As negotiations continue, the outcome will likely have far-reaching implications for both Boeing and the broader labor market.

“We believe we are not asking for more than we deserve,” said Marcus Amador, a quality inspector who has worked for Boeing for 13 years. His sentiments were echoed by many of his fellow workers who joined him outside Boeing’s Renton, Washington, facility in the early hours of Friday. Amador, alongside thousands of machinists responsible for building Boeing’s 737, 777, and 767 jets, stood united in their call for fair compensation, demanding more than the company’s proposed offer.

This marks Boeing’s first strike since 2008, and union members overwhelmingly supported it. Approximately 96% of the 33,000-member workforce voted to walk off the job, a staggering display of dissatisfaction. Workers were clear in their message: the offer, which included wage increases and enhanced retirement and healthcare benefits, did not address the long-standing grievances that have plagued the workforce for years.

The Struggle for Fair Wages Amid Rising Costs

At the heart of the dispute is pay. While the proposed 25% wage increase might seem significant, many Boeing employees pointed out that it falls short in the face of rising living costs in the Pacific Northwest. “You can make more money flipping burgers,” said one employee, noting that the starting wage under the new contract—$21 an hour—was close to what local fast-food chains offered, without the immense responsibilities Boeing machinists shoulder.

The union had been pushing for a 40% wage increase over the same period, arguing that the company’s financial recovery depends heavily on the skills and expertise of its workers. Boeing has had its share of struggles in recent years, with production delays, safety issues, and supply chain disruptions taking a toll on the company’s reputation and financial health. However, union representatives argue that these challenges should not fall on the shoulders of the workforce.

Jon Holden, president of the IAM chapter, emphasized that while the company’s offer contained important improvements, it failed to bridge the gap caused by 16 years of stagnant wages, two contract extensions, and ongoing concerns about job security and healthcare costs. “The frustrations of the past cannot be ignored,” Holden said, adding that the union is ready to resume negotiations but will not back down from its demands.

A Financial Blow at a Critical Time for Boeing

The timing of the strike couldn’t be worse for Boeing. The company is already under immense financial pressure, having burned through $8 billion this year alone. Its supply chain has been strained, and aircraft deliveries have been delayed. The stoppage, which halts production on Boeing’s best-selling 737 Max, 777, and 767 jets, threatens to further exacerbate these problems. Boeing shares dropped 4% in premarket trading as news of the strike broke, and analysts estimate that a month-long work stoppage could cost the company as much as $1.5 billion.

“This strike will have a ripple effect throughout the industry,” said aerospace analyst Sheila Kahyaoglu. “Boeing’s suppliers, airlines awaiting jet deliveries, and even competitors like Airbus could feel the impact. Boeing’s struggle to ramp up production post-pandemic has been well-documented, and this strike will only add to those challenges.”

While Boeing is no stranger to strikes—the 2008 strike lasted 57 days and cost the company an estimated $100 million a day—the current financial climate makes this work stoppage particularly perilous. A series of high-profile safety incidents, including the blowout of a door plug on a 737 Max earlier this year, has already brought increased federal scrutiny of Boeing’s operations. The last thing the company needs now is another delay in production, especially as it works to repair relationships with regulators, customers, and investors.

CEO Ortberg’s Plea: A Call for Unity, or Too Little Too Late?

Boeing’s newly appointed CEO, Kelly Ortberg, took office just five weeks ago, inheriting a company in turmoil. On the eve of the union vote, Ortberg pleaded with workers to accept the proposed contract, arguing that a strike would jeopardize Boeing’s future. “I ask you not to sacrifice the opportunity to secure our future together because of the frustrations of the past,” he said in a message to employees. Ortberg’s leadership has been framed as a fresh start for Boeing, with promises to rebuild trust and repair strained labor relations.

Yet, for many workers, these promises feel empty after years of perceived corporate neglect. “This isn’t just about money,” said Amador, reflecting the broader sentiment among the strikers. “It’s about respect. It’s about knowing that we matter to the company and that our hard work is valued.”

Union members have expressed frustration over what they see as a widening gap between Boeing’s top executives and its workforce. “We see executives getting bonuses and pay raises, while we’re expected to tighten our belts,” said one machinist outside Boeing’s Everett plant. “It’s been years of this, and we’ve had enough.”

Ortberg’s call for unity may have come too late. The workers’ vote to strike was an emphatic rejection not only of the contract terms but also of a corporate culture that they feel has prioritized profits over people for far too long.

The Bigger Picture: Labor’s Resurgence

The Boeing strike is just the latest in a series of high-profile labor actions across various industries. The resurgence of union activity in the U.S. has been fueled by growing economic inequality and a pandemic that forced many workers to reevaluate their relationship with employers. From Hollywood writers to Detroit autoworkers, workers across sectors have shown they are willing to walk off the job to secure better wages, benefits, and working conditions.

“In the last few years, we’ve seen a shift,” said Cornell University labor expert Kate Bronfenbrenner. “Workers are more willing to flex their collective power, especially as they see corporate profits rising while their own wages stagnate. Boeing workers are part of a larger movement.”

As the Boeing strike continues, the company’s executives and union leaders will return to the negotiating table, with both sides hoping to find a solution before the financial and operational damage becomes too severe. But for now, the picket lines outside Boeing’s factories are a powerful reminder that the fight for fair compensation is far from over.

“I’ve never seen workers this fired up,” said Josh Hajek, a five-year Boeing employee in Renton. “Every hour, on the hour, we’ve been out there rallying with horns and whistles, sending a clear message: this contract isn’t good enough.” This sentiment has been echoed across all of Boeing’s plants, with machinists actively rallying and preparing for what many see as an inevitable strike. Hajek added, “We’ve discussed the contract thoroughly, and it just doesn’t meet our needs. We deserve better.”

https://www.tiktok.com/@rae.abby/video/7413461284345154858?is_from_webapp=1&sender_device=pc&web_id=7412698953894741547

Even union leaders, including District 751 President Jon Holden, who initially recommended the tentative deal to members, have conceded that it will likely be voted down. “The contract offer will be rejected, and our members will vote to strike,” Holden admitted. This stark acknowledgment from leadership underscores the growing rift between Boeing management and its workforce, with the union preparing for a walkout at 12:01 a.m. Friday.

Bitter Legacy and Worker Frustration

Part of the frustration stems from long-standing grievances. Many workers still feel the sting of a 2014 deal in which Boeing pressured the union to give up its traditional pension by threatening to move production of the 777X to another state. Boeing’s new CEO, Kelly Ortberg, acknowledged these past wounds in a message to employees, stating, “I understand the frustration from the last contract, and the reaction to this tentative agreement has been passionate. But I urge you not to let past frustrations sacrifice our shared future.”

Despite this plea, many workers, like Everett machinist Jake Reis, remain unconvinced. “Why should we sacrifice for management’s mistakes?” Reis asked. He noted that while Boeing faces serious challenges, including production delays and financial instability, workers should not bear the brunt of those consequences. “They’ve made poor decisions, and now they want us to pay for them. That’s not fair.”

Adding to the frustration is the perceived “deceptive advertising” of Boeing’s offer. While the contract includes a 25% wage increase over four years, workers point out that it also eliminates their annual bonuses, which have been a significant part of their compensation. Krystal Keefe, a six-year Boeing mechanic, called the proposal “a talking point for the public,” noting that the supposed 25% increase is misleading when factoring in the loss of bonuses. “Our wage isn’t really going up 25%,” she said, a sentiment echoed by many on the factory floor.

On Wednesday, Boeing workers met to found the new Boeing Workers Rank-and-File Committee. Their founding statement is below:

“We urge our coworkers to turn the next rallies into mass meetings, where we collectively and democratically decide what we are going to do next. We propose the following:

“A strike must take place midnight on Friday. If one is not called, we call on our coworkers to organize to enforce their decision. The strategy of the strike itself must also be under rank-and-file control. In particular, we must demand full strike pay from day one, paid out of the IAM’s $300 million assets.

“We must fan out to workplaces everywhere, in all industries, to build support and joint actions. Workers everywhere will be inspired by the stand we make. We must turn our struggle into a movement of the whole working class, who are fighting the same issues we are.

“In particular, we must reach out to the 50,000 Washington state public workers, who walked out Tuesday against inadequate pay increases. We must also reach out to the whole Boeing workforce, including nonunion workers at the plant in South Carolina.

“We must reach out to railroad workers, who are also fighting new sellout contracts. And to East Coast dockworkers, who are pushing to strike by October 1, and where union officials are making the same bluster the IAM did over the summer. And we must appeal to UPS workers and autoworkers, who are fighting mass layoffs after contracts that their unions falsely claimed to be huge victories.

“We must also appeal for worldwide support, especially Airbus workers in Europe who are also facing huge cuts. We must reject the divide-and-conquer nationalism that pits us against workers in other countries who have the same interests as we do.

“Our committee is affiliated with others like it around the world through the International Workers Alliance of Rank-and-File Committees (IWA-RFC). This will give Boeing workers the ability to establish lines of contact and coordinate with workers internationally who are also fighting sellout contracts.

“Next, there must be rank-and-file oversight over all future talks. Last Friday the IAM said they were “far apart,” then announced a deal two days later. This shows they were lying all along.

“A new bargaining committee must be elected, chosen solely from rank-and-file workers, not union officials. Once a deal is reached, the full contract must be made available for a week to give us adequate time to review and discuss it.

“There must be full transparency over the voting itself through rank-and-file oversight, and independent monitoring and vote-counting in public. We can’t have a situation like the disorganized second vote in 2014, which was also timed to coincide with a holiday to drive down turnout.”

The Broader Economic Impact

A strike would not only disrupt Boeing’s operations but could also have far-reaching consequences for the regional economy. Boeing is a cornerstone of the Pacific Northwest, employing around 33,000 machinists in Washington state. “Any strike would be hard on workers, families, the company, and our communities,” said Snohomish County Executive Dave Somers, whose region houses many of Boeing’s workers. The ripple effects would hit not only Boeing’s supply chain but also local businesses, from restaurants to small service providers, that depend on machinist spending.

Still, many Boeing workers remain confident in their ability to weather a strike. Some have taken on second jobs or plan to turn to gig economy work, like DoorDash and Uber, to make ends meet. “I’ve been saving for this,” said Reis. “I know it will be tough, but we’re ready for the long haul.”

Boeing’s Financial and Operational Struggles

For Boeing, the timing of the potential strike is dire. The company is already under immense pressure following several turbulent years, including the 737 MAX crisis, ongoing production delays, and mounting debt. Analysts predict a strike could further erode the company’s financial position, with some estimates suggesting a work stoppage could cost Boeing up to $100 million per day. “A 50-day strike could dent Boeing’s cash flow by $3 billion to $3.5 billion,” according to analysts from TD Cowen.

Ortberg, who took over as CEO in August, is tasked with turning Boeing’s fortunes around. In a last-ditch plea to workers, he warned that a strike would jeopardize the company’s recovery. “We are in a difficult period, in part due to our own mistakes, but a strike would further erode trust with our customers and harm our ability to shape our future together,” he said.

Worker Solidarity and Union Dynamics

The unity among Boeing workers is palpable, but the growing tension between rank-and-file machinists and union leadership has sparked internal conflicts. Many workers feel betrayed by their own union, believing that the leadership has conceded too much. “They’ve sold us out,” one anonymous machinist said, referring to the union’s endorsement of the contract. “We’re fighting for our future, and they’ve backed us into a corner too many times.”

Union message to their members yesterday.

Despite these internal rifts, the machinists remain steadfast in their commitment to strike if necessary. “We’ve been backed into a corner for too long,” Hajek said. “This is our fight, and we’re ready for it.”

As the clock ticks toward the vote and a likely strike, Boeing faces the prospect of further destabilization in a time of crisis. The question remains whether the company can find a way to resolve the conflict or if the walkout will mark the beginning of a prolonged and costly standoff.

The looming strike at Boeing highlights deep-seated frustrations among its workforce. Workers feel the company’s latest offer fails to address their concerns, particularly regarding wages and lost benefits, while Boeing leadership fears that a strike could derail the company’s recovery efforts. As both sides prepare for what seems like an inevitable showdown, the outcome will shape not just Boeing’s future but the economic landscape of the entire Pacific Northwest.

https://www.tiktok.com/@marthalopez8851/video/7413594684922285358?is_from_webapp=1&sender_device=pc&web_id=7412698953894741547

Delayed Milestone: A Six-Month Setback

The delay of Boeing’s production milestone has created ripples throughout its supply chain, frustrating suppliers and heightening uncertainty in an already complex global supply chain environment. Sources familiar with the matter indicated that the revised schedule will have Boeing producing 42 737 Max jets per month by March 2025, rather than the original goal of September 2024. For many suppliers, this change presents operational challenges. One industry source close to Boeing commented, “This shift isn’t just about Boeing; it’s about the entire supply ecosystem that relies on Boeing’s projections to plan their production timelines.”

Spirit AeroSystems, Boeing’s largest fuselage supplier, has already adjusted its output to accommodate the change. In August, the company lowered its fuselage production from 31 to 21 per month, reflecting the adjusted master schedule communicated by Boeing. Joe Buccino, a spokesperson for Spirit AeroSystems, explained, “We make adjustments in accordance with our agreements with Boeing, but such changes do create complexities when it comes to managing our own supply chain.”

The need for such delays stems from ongoing safety and regulatory issues, including the well-publicized incident in January when a door panel blew off mid-flight during a 737 Max test flight. This has led to additional regulatory scrutiny, further complicating Boeing’s efforts to accelerate production. As one industry analyst noted, “Boeing is in a constant dance with regulators, and every time there’s a safety incident, the choreography becomes more intricate and challenging.”

Supply Chain Strain: Impact on Smaller Suppliers

While large suppliers like Spirit AeroSystems have the flexibility to adjust, smaller suppliers are facing more severe challenges. Many smaller firms now find themselves grappling with the financial burden of slowing production while maintaining operations. These firms often carry the costs of materials and labor as work-in-progress inventories build up. One source within a smaller supplier expressed frustration, saying, “We’re carrying costs for parts that won’t be needed for another six months. That’s tough on a small business.”

Boeing’s revised schedule is leaving suppliers with difficult decisions about how to navigate the next several months. Some are exploring options to diversify their client base, looking to competitors such as Airbus or Embraer to offset the reduced demand from Boeing. Industry insiders suggest that the extended delays may cause some suppliers to rethink their long-term relationships with Boeing, opting instead for more stable production timelines from other manufacturers. “If Boeing can’t provide predictability, some suppliers may be forced to shift their focus to other OEMs like Airbus, which has its own challenges but at least maintains consistent communication,” said Addison Schonland, an aviation analyst.

Internal Moves: Boeing’s Organizational Restructuring

In response to the ongoing production challenges, Boeing is also reorganizing its internal teams to better coordinate between operations and contracts. One source familiar with Boeing’s operations mentioned that Boeing Commercial Airplanes is consolidating its operations and contracts teams to streamline communication between the company and its suppliers. The goal is to reduce the miscommunication that has plagued production schedules in the past and improve overall supply chain management.

Boeing’s leadership acknowledges the complexity of balancing production with supplier readiness. In a statement during Boeing’s second-quarter earnings call, CFO Brian West remarked, “Our objective remains to keep the supply chain paced ahead of final assembly to support stability. But we continue to make adjustments as needed and manage supplier by supplier based on inventory levels.”

Industry Implications: A Broader Aerospace Struggle

Boeing’s production struggles aren’t happening in isolation. Its chief competitor, Airbus, is also facing supply chain issues, though it has been more optimistic about meeting revised targets. Airbus has set a goal of delivering 770 planes by the end of 2024, but CEO Guillaume Faury acknowledged that the target remains a “big challenge” due to global parts shortages. The aerospace industry as a whole is navigating a post-pandemic environment marked by surging demand but constrained by supply chain disruptions and labor shortages.

#BREAKING: Passengers onboard the terrifying midair door blowout on an Alaska Airlines flight were told by the FBI that they may be victims of a crime
⁰#UnitedStates | #USA ⁰⁰All 171 Passengers aboard the Alaska Airlines Boeing 737 Max 9, which experienced a midair door… pic.twitter.com/GctCwBGOyL

— R A W S A L E R T S (@rawsalerts) March 22, 2024

For Boeing, the stakes are high. The 737 Max remains its best-selling jet, and delays in increasing production rates threaten to erode its competitive edge. Furthermore, labor tensions are brewing, with the president of Boeing’s largest union indicating that members may reject a contract deal, potentially leading to a strike at Boeing’s facilities near Seattle. If a strike occurs, it could further delay Boeing’s production targets and exacerbate supply chain issues.

The Road Ahead: Will Boeing Recover?

As Boeing grapples with its production delays and regulatory challenges, the road to recovery looks long and uncertain. Industry insiders believe that Boeing will need to navigate not just its internal production challenges but also external pressures from suppliers, regulators, and labor unions. A strike or further safety incidents could delay the 737 Max program even further, leaving Boeing in a precarious position in the competitive aerospace market.

Boeing’s ability to maintain strong relationships with its suppliers will be critical in the coming months. As one supplier put it, “We’re all in this together, but Boeing needs to ensure that we can weather this storm alongside them. If not, they risk losing more than just time—they could lose the trust of key partners.”

In a high-stakes industry where timing and reliability are everything, Boeing must find a way to get its production back on track, or it may find itself losing ground to its European competitor. For now, all eyes remain on March 2025, the next critical milestone for the 737 Max program.

Union President Jon Holden, who leads the International Association of Machinists (IAM) District 751, expressed a grim outlook ahead of Thursday’s vote. “The response from people is it’s not good enough,” Holden told The Seattle Times. “Right now, I think it will be voted down, and our members will vote to strike.”

The Contract That Sparked the Unrest

At the heart of the discontent is the gap between worker expectations and the actual terms of the contract. The proposed wage increases — 25% over four years — are seen by many as inadequate in light of inflation and a decade of stagnant wages. Boeing employees, particularly those in Seattle and Everett, have seen the cost of living soar while their wages remained stagnant. “We deserve more than what’s being offered. After 10 years of losing ground, we’re just trying to catch up,” one 34-year Renton mechanic said.

There is no deal at #Boeing the union membership is gonna reject the new contract. 33,000 Boeing workers will go on STRIKE! This proposed contract is an insult to our members. pic.twitter.com/0nBJVVwm0F

— Ben Cruz (@WestsideXfiles) September 10, 2024

Francis King, a machinist with 37 years of experience, echoed these sentiments, stating, “Bottom line, it’s absolutely unacceptable. The inflation rate’s at 4%, and they’re offering the same for the second and third years.” Workers are particularly angered by the fact that the performance-based bonus program, known as the Aerospace Machinists Performance Program (AMPP), would be eliminated under the new contract. This bonus was often a critical part of employee compensation, providing up to 4.6% in additional annual income. “They’ve taken away our incentive bonuses, and that’s going to hurt,” Rob Davis, a mechanic in Everett, explained.

A Decade of Concessions

Much of the frustration stems from the painful concessions Boeing workers agreed to in the last decade. In 2014, the IAM negotiated a contract extension that increased healthcare costs and froze pensions, which left many workers feeling betrayed. “It’s hard to come off 10 years when you lost so many things that were critical,” Holden said in reference to the 2014 contract, acknowledging the lasting bitterness from that period.

The new vote on authorizing a strike at Boeing hasn’t even happened but many machinists say they are ready to reject the new offer and walk picket lines until they what they want. @komonews pic.twitter.com/aQBS51YL6A

— Denise Whitaker (@deniseonKOMO) September 10, 2024

Workers were particularly disappointed by the lack of a pension restoration in the new agreement. “You need to get that pension back,” King added. “Some other companies doing the same work have restored pensions, so it’s possible.” Many Boeing employees feel the pension plan was an essential part of their financial future, and its absence in this new deal leaves them uncertain about their long-term security. “If they can pay a CEO $35 million a year, that’s what, the best they can do?” lamented Alexander, another union machinist.

Boeing’s Struggles Amid Labor Tensions

Boeing itself is facing an array of internal and external challenges. The company is still recovering from the fallout of its 737 MAX crisis and is now grappling with significant production issues and regulatory scrutiny. Its credit rating teeters just above junk bond status, and a strike could spell disaster for the company’s already fragile financial state. New CEO Kelly Ortberg, who took over in August, has been tasked with steering Boeing through these challenges, but the looming threat of a strike could derail those efforts.

@GayBearRes @MacroEdgeRes @DiMartinoBooth @VladTheInflator, Boeing $BA employees getting shafted from this deal, people not happy. $3k bonus in 2008, $3k bonus in 2024 #Boeing #IAM751 pic.twitter.com/MH7igRGyxa

— LarpOsinter (@LarpDefender) September 8, 2024

Ortberg personally intervened during the labor negotiations to secure a commitment on job security, promising that Boeing’s next plane would be built in the Puget Sound region if it were launched during the contract’s four-year term. “He did give a commitment on job security,” Holden said, acknowledging Ortberg’s role in the talks. “But now we have work to do to make it worth something.”

Still, many workers remain skeptical. As Francis King pointed out, “We’re just not seeing enough in this contract to make us feel secure about our future.” Others worry that Boeing’s recent quality issues — including a door plug incident on an Alaska Air 737 MAX — are indicative of deeper problems within the company that won’t be solved by a new contract alone.

Strike Preparations Are Underway

If union members vote down the contract, a strike could begin as early as Friday, and workers are already preparing for that possibility. In Everett, Renton, and other Boeing locations, machinists have been holding break-time marches to demonstrate their dissatisfaction. “There’s a lot of frustration in the building,” said Brandon Felton, a machinist who participated in the marches. “We’re all together on this, and we’re ready to walk.”

Today in Everett: pic.twitter.com/cmTYrOQf6O

— Dominic Gates (@dominicgates) September 10, 2024

Leaflets circulating through Boeing’s factories encourage workers to reject the deal and authorize a strike. One leaflet, viewed by Bloomberg, urged machinists to “Stand strong” and push for a 40% wage increase, along with the restoration of pensions and a seat on Boeing’s board. “We deserve a fair deal,” the leaflet declared, reflecting the sentiments of many Boeing employees.

The $3,000 signing bonus offered in the current contract has also been a point of contention, with workers recalling the $15,000 bonus they received in 2014. “A $3,000 bonus in 2024 is laughable,” said one Boeing employee, comparing it to inflation and rising costs. “Every employee I’ve spoken to said they are voting NO,” added another, emphasizing the collective anger over the proposed contract terms.

The Impact of a Potential Strike

A strike at Boeing could have far-reaching consequences, not just for the company but for the broader U.S. economy. Boeing employs more than 140,000 people globally and plays a critical role in both the commercial and defense sectors. If the strike proceeds, Boeing’s production of the 737 MAX and 777X aircraft would come to a halt, causing disruptions across the entire aerospace industry. The company would also face mounting debt, exacerbating its already precarious financial situation.

A strike would also be a significant setback for CEO Kelly Ortberg, who was brought in to stabilize Boeing after years of turmoil. His ability to negotiate labor peace and keep production running smoothly is crucial to Boeing’s recovery, particularly as it faces increased scrutiny from regulators and customers. A protracted strike could delay Boeing’s plans to ramp up production of its best-selling jets and further weaken its competitive position in the global market.

Will Workers Accept the Deal?

For now, all eyes are on Thursday’s vote. While union leaders, including Holden, are recommending that members accept the contract, many workers feel that the deal doesn’t go far enough to address their financial concerns and restore the benefits lost over the past decade. As machinist Francis King succinctly put it, “We need to hold strong. This deal isn’t enough, and we deserve better.”

Got to love a company full of smart people that can sift through the of @IAM751 #IAM751. Wage increases are really just 11%, basically telling Union Members to GFY $BA #Boeing cc @MorePerfectUS @krism @VladTheInflator @DiMartinoBooth pic.twitter.com/7CcMdMIxVb

— LarpOsinter (@LarpDefender) September 8, 2024

Should the workers vote to strike, Boeing will not only face the challenge of resolving the labor dispute but also the financial and operational consequences of a walkout that could cripple its production lines and stall its long-term recovery efforts.

In the words of Jon Holden, “It’s in the members’ hands now. We will use the power they give us to fight for more.”

The agreement includes a 25% wage increase over the next four years, job security guarantees, and significant improvements in healthcare benefits. Notably, Boeing has committed to building its next commercial airplane in the Puget Sound region of Washington, ensuring job security for thousands of workers. IAM District 751, representing over 33,000 Boeing employees, will vote on the proposed contract on September 12.

A Critical Moment for Boeing

The negotiations took place against the backdrop of Boeing’s wider struggles. Following the near-catastrophic January incident involving a 737 MAX and persistent production delays, Boeing’s recovery has been slow. The threat of a strike couldn’t have come at a worse time for the aerospace giant. “A strike would have been disastrous for Boeing,” said Claire Bushey of Financial Times. “It could have delayed the production of its strongest-selling aircraft, the 737 MAX, and further strained its already precarious financial situation.”

Boeing is currently ramping up production to meet a target of 38 aircraft per month by year’s end, a goal made even more critical by increasing competition from Airbus and ongoing scrutiny from regulators. A previous IAM strike in 2008 cost Boeing an estimated $2 billion, and another strike would have been equally, if not more, damaging.

What’s in the Agreement?

Union leaders fought hard for their members. The initial demand was a 40% wage increase, as well as the reinstatement of traditional pension plans. While the final wage increase fell short of those expectations, union representatives see the deal as a win. “The pay raises may not be exactly what we asked for, but securing the next airplane program for Puget Sound was a top priority,” said IAM President Jon Holden.

The proposed contract also includes a $3,000 ratification bonus and introduces a new retirement savings plan with company contributions. According to Boeing CEO Kelly Ortberg, the deal reflects Boeing’s long-term commitment to its workforce. “We have listened to what’s important to our employees, and we are ensuring that Boeing remains a strong presence in the Pacific Northwest for generations to come,” Ortberg said in a statement.

Employee Sentiment: Cautious Optimism

Although union leaders are urging their members to accept the deal, sentiment among Boeing’s workforce is mixed. Anti-management feelings have been simmering for years, especially among workers who feel betrayed by Boeing’s decision to scrap pensions a decade ago. “This contract is a step in the right direction, but we’re not forgetting the sacrifices we made in the past,” said an anonymous Boeing employee in Seattle.

IAM District 751 has long been a powerful voice in shaping Boeing’s labor policies. The union’s insistence on including the future aircraft production in the Pacific Northwest is seen as a major victory. “There is no Boeing without the IAM,” Holden emphasized, underscoring the union’s vital role in Boeing’s success.

Challenges Still Loom

Even with this tentative deal, Boeing is not out of the woods. The company is facing production delays and technical issues across its product lines, including the 737 MAX, 767 Tanker, and 777X. In addition, Boeing’s space division is struggling, particularly with its Starliner spacecraft, which failed to bring its crew back from the International Space Station as planned earlier this year.

Yet, this new agreement may provide a much-needed sense of stability for Boeing’s workforce and its future. “This deal could be the foundation for Boeing’s long-term recovery,” said Sara Samora, a reporter with Manufacturing Dive. “By securing labor peace, Boeing can now focus on solving its operational challenges and regaining the trust of its customers and regulators.”

The outcome of the IAM vote on September 12 will determine whether this fragile peace will hold, but for now, Boeing appears to have successfully averted a major labor crisis.

This landmark agreement, while not fulfilling all of the union’s initial demands, showcases the complex balance Boeing must strike between maintaining financial stability and addressing the concerns of its critical workforce. As Boeing continues its production ramp-up and navigates an evolving aerospace landscape, its relationship with the IAM will remain a key factor in its recovery.

Why the S&P 500 Inclusion Matters

The S&P 500 is one of the most influential stock indices globally, serving as a benchmark for large-cap U.S. equities. Inclusion in this index often leads to a surge in demand for a company’s shares, primarily because index funds and ETFs that track the S&P 500 must purchase shares of the newly added companies. For Dell and Palantir, this marks a significant milestone, positioning them among the elite companies in the U.S. economy.

Valérie Noël, Head of Trading at Syz Group, noted the immediate market reaction to the announcement: “Palantir shares surged 7.52% in after-hours trading, while Dell shares jumped 5%. This is a clear signal of the market’s confidence in the growth prospects of these two companies as they prepare to join the S&P 500.” Both companies have been growing their influence in the tech space, and this inclusion is expected to further solidify their market positions.

Palantir: Riding the AI Wave

Palantir, co-founded by tech billionaire Peter Thiel, has been riding the wave of artificial intelligence (AI) growth. The company, known for its big data analytics platforms like Palantir Gotham and Palantir Foundry, has been gaining momentum as governments, law enforcement, and financial institutions increasingly rely on AI and machine learning for data-driven decision-making.

Palantir’s shift towards AI and its commercial applications has bolstered its financial performance, with the company achieving consistent revenue growth and profitability since 2022. According to Bodhi Blake, a development specialist at Google, “Palantir has long been considered a key player in the AI space, and its inclusion in the S&P 500 further underscores its importance in the tech sector.”

Palantir’s expanding commercial business, particularly its AI tools, has driven its stock to new highs in 2024. As Dr. Koay, an AI advisor, noted, “Palantir’s consistent revenue growth and profitability are encouraging, but shareholders should keep an eye on the long-term risks, especially its focus on government contracts, which could face competitive challenges.”

Dell’s AI Strategy Pays Off

Dell Technologies, long known for its dominance in the hardware space, has shifted its focus toward AI infrastructure. The company has been capitalizing on the increasing demand for servers and storage solutions capable of handling AI workloads. This strategic pivot has led to stronger-than-expected revenue growth, with Dell benefiting from its AI server sales.

Dell’s AI-centric strategy has proven to be a lucrative move, with the company reporting better-than-expected earnings in recent quarters. The company’s inclusion in the S&P 500 reflects its growing importance in the tech sector, particularly in providing the hardware necessary to power AI advancements. “Dell’s re-entry into the S&P 500 after a strong performance in AI server sales highlights its growing relevance in the tech space,” said Dr. Koay.

However, as with Palantir, Dell’s success in the AI space also comes with risks. As demand for AI infrastructure fluctuates, Dell may face volatility in its revenue streams, making long-term growth a key focus for investors.

The Ripple Effect on American Airlines, Etsy, and Bio-Rad

While Dell and Palantir celebrate their inclusion in the S&P 500, the companies they are replacing—American Airlines, Etsy, and Bio-Rad Laboratories—are facing the opposite effect. Removal from the index typically leads to a decline in stock prices as index funds sell off shares to align with the new composition.

American Airlines, in particular, has been struggling with rising labor costs and delayed deliveries of new planes, which have hurt its profitability. Following the announcement, American Airlines shares dropped 0.8%, adding to a 21% year-to-date decline. Etsy, which will move to the S&P SmallCap 600, also saw a slight decline in its stock price.

At the heart of the case is the Internet Archive’s controversial practice of scanning physical books and making them available digitally, which it defended as a modern extension of traditional library lending. However, the court saw otherwise. “IA’s Free Digital Library primarily supplants the original works without adding meaningfully new or different features that avoid unduly impinging on publishers’ rights,” wrote the court in its ruling. The decision not only halts the Archive’s book-lending program but also sets a legal precedent that could reverberate across the digital landscape.

The Battle Over Controlled Digital Lending

The Internet Archive has long operated its Open Library project, a digital platform where users can “borrow” digitized copies of physical books, adhering to a one-to-one owned-to-loaned ratio. Essentially, if a library owned a physical copy of a book, the Archive made a digital copy available to a user under strict lending conditions, mirroring the practice of traditional library loans. The concept of CDL hinges on the belief that lending a digital copy of a book is the functional equivalent of lending the physical version. However, four major publishers—Hachette, Penguin Random House, Wiley, and HarperCollins—vehemently disagreed.

In 2020, these publishers filed a lawsuit, accusing the Archive of willful copyright infringement. The Archive, they argued, was unlawfully distributing exact digital replicas of their works, undercutting the market for legitimate eBook sales and licensing. The court agreed, finding that the Archive’s practices were not protected by the Copyright Act’s fair use doctrine. “This ruling reaffirms the rights of authors and publishers to license and be compensated for their works,” said Maria Pallante, president and CEO of the Association of American Publishers. “It reminds us that infringement, even under the guise of public interest, is both costly and antithetical to the protection of creative works.”

The Fair Use Debate: What Constitutes “Transformative”?

A critical component of the court’s analysis was whether the Archive’s actions qualified as “transformative” under fair use. In copyright law, a transformative use adds new meaning, expression, or value to the original work. The Archive’s argument was that digitizing books to allow broader access through lending was transformative in nature. Joe Gratz, the Internet Archive’s lawyer, contended during the hearing that the nonprofit was simply using technology to perform the same functions libraries had always done. “Libraries have been lending books for centuries. What we’re doing is no different, except that it’s more efficient and accessible.”

However, the court pushed back on this narrative. “If print and eBook formats are considered distinct, and there are separate markets for them, why shouldn’t the law recognize that converting a paper book into a digital book isn’t just the same thing as passing around a paper book?” the judges asked. They ultimately ruled that the Archive’s digital copies were not transformative because they served the same purpose as the original works—reading—and did not add new content or functionality. “IA is asking us to bless large-scale copying and distribution of copyrighted books without permission or payment to the authors. This is not an approach the Copyright Act permits,” the court concluded.

The Implications for Libraries and Digital Access

The ruling has left many in the library and academic communities dismayed. Chris Freeland, the Internet Archive’s director of library services, expressed his disappointment in the outcome. “We are reviewing the court’s opinion and will continue to defend the rights of libraries to own, lend, and preserve books,” he said, reflecting concerns over the chilling effect this decision could have on digital preservation efforts.

Advocates for the Archive argue that the decision will disproportionately harm libraries and their patrons. “Libraries are already burdened by eBook licensing fees that make it difficult to provide access to creative works,” noted Dave Hansen, executive director of the Author’s Alliance. “This ruling may benefit the largest publishers and most prominent authors, but for many others, it will do more harm than good. It could even stifle academic research and learning.”

A lingering concern is that this ruling could lead to more restrictive access to digital books, particularly as more works become available only in eBook format. “The real-world effect of this decision is that libraries will struggle to provide access to books in any meaningful way,” said Hansen. “The price of eBook licenses is already sky-high, and now libraries are being squeezed even further. It’s the public who will ultimately suffer.”

AI Training Faces New Copyright Hurdles

The implications of the ruling extend beyond libraries and digital lending, touching on the rapidly evolving field of artificial intelligence (AI). As AI systems increasingly rely on copyrighted materials for training, the precedent set by the Internet Archive case could have a chilling effect on how companies and developers access and use creative works. “The way the courts interpret fair use in the coming years will be crucial,” said James Grimmelmann, a professor of digital and internet law at Cornell University. “The Internet Archive decision shows that courts are taking a more restrictive view of fair use, which could make it harder for AI companies to use copyrighted materials without permission or compensation.”

This trend is already visible in a number of high-profile lawsuits involving AI companies. Many of these cases argue that using copyrighted works to train AI models—whether for generating text, music, or images—should be protected under fair use. However, as the Internet Archive ruling demonstrates, courts are increasingly skeptical of such claims. “If we continue down this path, we could see a legal framework where innovation is stifled by restrictive copyright interpretations,” warned Dave Hansen of the Author’s Alliance. He emphasized that while protecting creators is important, overly rigid copyright laws could impede technological advancement, particularly in AI, which thrives on vast amounts of data for training purposes.

Furthermore, some legal experts have pointed out that the parallels between digital lending and AI training are striking. The court’s dismissal of the Archive’s argument that its practices were transformative could be a bellwether for how similar defenses are treated in AI cases. As Grimmelmann noted, “There’s nothing transformative about IA’s use of the books, according to the court, and this could be a big problem for AI companies that are also trying to argue that their use of copyrighted works is transformative. It’s a significant decision to watch.”

The debate over fair use and AI will undoubtedly intensify in the coming years, especially as the technologies become more pervasive in industries ranging from entertainment to education. “It’s not just about libraries and books,” added Hansen. “The ramifications of this ruling could be felt across the entire tech ecosystem, particularly for companies developing generative AI models. Fair use is no longer a given; it’s going to be litigated and fought over case by case.”

What’s Next for the Internet Archive?

The Internet Archive is not ready to throw in the towel just yet. Freeland has hinted that the organization is considering its legal options, including further appeals. However, the nonprofit faces an uphill battle. It is also currently embroiled in a separate $400 million copyright infringement lawsuit from a group of record labels over its Great 78 Project, which aims to digitize and preserve 78rpm shellac records. The combined legal challenges are raising existential questions for the Archive’s future.

As Gratz noted after the ruling, “It’s hard to say how this case will be resolved. But what is clear is that the issues it raises—about the role of libraries, digital access, and the public’s right to information—are not going away.”

The case has drawn a sharp line in the sand between the rights of authors and publishers and the rights of the public to access information. As the debate continues, many are left wondering what the future holds for digital lending, fair use, and the very concept of libraries. Then, there is the massive AI-generated elephant in the room. Are limits coming to the scraping of content by companies like OpenAI, Google, Facebook, etc. that are fueling their AI products?

In a recent blog post, Airbnb called for an overhaul of Local Law 18 (LL18), urging New York City officials to reassess the stringent regulations. “It’s time for New York City to re-evaluate LL18 and consider amendments that would, at a minimum, allow homeowners to once again host guests,” said Theo Yedinsky, Airbnb’s vice president of public policy. He added that by loosening some restrictions, the city could “increase the supply of accommodations for consumers, support resident hosts, and revitalize local businesses that depend on tourism dollars.”

The Rise and Fall of Short-Term Rentals in NYC

Before LL18 took effect in September 2023, New York City was one of Airbnb’s largest and most lucrative markets. In 2022 alone, the company generated $85 million in net revenue from its New York listings. The city was home to tens of thousands of short-term rentals spread across all five boroughs. However, Local Law 18 sought to change this landscape by imposing severe restrictions on short-term rentals. The law requires hosts to live on the premises during rentals, limits stays to fewer than 30 days, and caps guest occupancy at two people, among other stringent conditions.

The impact was immediate, according to data from AirDNA, the number of Airbnb listings for stays of fewer than 30 days plummeted by 83% in the first year of the law’s enforcement. In July 2024, there were just 3,700 short-term listings on Airbnb in New York City, down from 21,900 in July 2023. “Many hosts were forced to switch to mid- or long-term rentals, but those who relied on short-term rentals as a primary source of income were hit hard,” said Jamie Lane, chief economist at AirDNA.

For hosts like Malaika, who rented out the downstairs apartment of her two-family home in Brooklyn, the new law has been financially devastating. “I’ve lost about $2,400 in monthly income, nearly a 30% drop,” she said. Malaika, who bought her home in Ocean Hill, Brooklyn, with her sisters, relied on short-term rentals to help pay her mortgage. “I prided myself on offering affordable stays in a place filled with African art and culture,” she said. “But the new rules make it impossible to continue hosting as I did.”

A Blow to Small-Time Hosts

Many small-time hosts like Malaika have been disproportionately affected by the city’s regulations. Hosts who once used platforms like Airbnb to supplement their income now find themselves struggling to make ends meet. Gia Sharp, a homeowner and co-founder of RHOAR (Residents for Homeowner Air Rights), has been leading a campaign to pause the enforcement of LL18 and exempt one- and two-family homeowners from the registration requirement. “Some of our members are doing even worse,” she said. “One homeowner lived in his car over the summer because he had to rent out his place so he wouldn’t lose it.”

Sharp also shared her personal challenges, recounting how the new regulations have disrupted her income and prevented her from making essential repairs to her home. “There’s definitely a few mortgage payments for income that I’m doing without, which is insane. I definitely can’t afford to replace my windows, which is thousands of dollars,” she said. Sharp and other members of RHOAR argue that the regulations have been too broad, catching small-time hosts in a net designed to target larger, illegal hotel operations.

In an interview, a retired FEMA employee, Stanley McIntosh, explained how the complexities of registering under the new law forced him out of the short-term rental market. McIntosh, who had been renting a garden-level apartment in his Harlem brownstone on Vrbo since 2017, said, “The application process was too complicated. The changes and the stuff you had to do just wouldn’t have worked at all.” Stanley and his wife, Rosalinda, initially shifted to longer-term rentals but are now uncertain about their next steps. “We can pay the mortgage, but we can’t save like we used to,” he said.

Outer Boroughs Hit the Hardest

The economic impact of LL18 has been particularly harsh on neighborhoods outside of Manhattan. Brooklyn and Queens, which had significant numbers of Airbnb listings before the law went into effect, have seen tourism and associated spending evaporate. Airbnb listings in the outer boroughs provided tourists with an affordable alternative to expensive Manhattan hotels, while also dispersing visitor dollars across different communities.

According to data from AirDNA, 37% of Airbnb listings in New York City were located in Brooklyn, and 13% were in Queens before the law. But LL18 has dramatically reduced the number of listings in these areas. As a result, tourism dollars that once flowed into local businesses in Brooklyn and Queens have dried up. “The unintended consequences of this legislation, especially the steep decline in places for tourists to stay, are hindering Brooklyn’s potential to attract visitors and is hurting its residents, small businesses, and local economy,” said Randy Peers, CEO of the Brooklyn Chamber of Commerce, in a scathing op-ed.

Peers isn’t the only one sounding the alarm. The Dominican American Chamber of Commerce has also criticized LL18 for favoring large corporations at the expense of middle-class residents and local small businesses. “With rent prices surging and many families relying on short-term rentals for supplemental income, the law has created financial strain for individual hosts and a decline in revenue for local businesses that thrive on tourism,” said Manuel Lebron, CEO of the Dominican American Chamber of Commerce.

Hotels Reap the Benefits

While small hosts and outer-borough communities have struggled, New York City’s hotel industry has experienced a remarkable boom. Since the introduction of LL18, hotel prices have surged, making New York City one of the most expensive destinations for travelers. Data from CoStar shows that New York City hotels posted the highest revenue per available room (RevPAR) increase among the top 25 U.S. hotel markets during the first half of 2024, jumping 10.1%.

Jan Freitag, national director of hospitality analytics at CoStar, confirmed the trend: “New York has certainly outperformed. While other top markets are recovering, none are seeing the jump that New York is experiencing.” However, Freitag also noted that the city’s hotel supply has actually decreased by 0.8% because many hotel rooms are now being used to house migrants and the homeless, adding further pressure on available accommodations. “The surge in demand, combined with the constraints on hotel capacity, has led to record-breaking prices,” he said.

But while Manhattan’s hotels are thriving, the story is different in the outer boroughs, where the hotel infrastructure is far less developed. “The impact on the city hasn’t been even,” said Jamie Lane of AirDNA. “Submarkets in the Bronx, Brooklyn, and Queens have seen short-term rental listings for stays of less than 30 nights drop by more than 90% year-over-year.”

The Black Market for Rentals

As legitimate short-term rentals have disappeared, an underground market has emerged to fill the void. Hosts unable or unwilling to register with the city have turned to alternative platforms, including Craigslist, Facebook groups, and even encrypted messaging apps like Telegram and Discord. These black-market listings operate outside the legal framework, offering few protections for guests.

“We go on there and individuals take risks in times of need if it’s a personal referral to the group,” said Malaika, referring to a group chat for hosts in her neighborhood. “It definitely happens. People are desperate.” She admitted that she once broke the law by renting out her apartment illegally for a week to avoid missing a mortgage payment. “I was crapping the entire time because the Office of Special Enforcement sends people around, and they could have been knocking on my door any day,” she said.

Marcus Räder, CEO of short-term rental software provider Hostaway, has also witnessed the rise of the black market. Speaking on the Alex & Annie Vacation Rental Podcast, he recounted his experience staying at an illegal Airbnb in New York. “Originally, I booked it on Airbnb, but then the listing got shut down. The host reached out to me and said, ‘Yo, just send the money. I’m still doing it.’” Räder suggested that while the law has made Airbnb and other platforms more accountable, it has also driven many rentals underground. “We need more Craigslist and no photos. That’s OK,” he quipped.

Airbnb’s Push for Reform

Airbnb’s leadership continues to argue that the broad scope of LL18 is hurting more than it’s helping. Theo Yedinsky pointed out that removing Airbnb listings from the market hasn’t translated into a meaningful increase in long-term rental housing. “It’s a misconception to think that if you remove a short-term rental from Airbnb, it automatically turns into long-term housing,” Yedinsky said. He emphasized that many Airbnb listings are lived-in homes where the owners rent out a room or the entire house while they are away. “It assumes every Airbnb that is listed is not lived in, is not a primary residence, and that’s fundamentally not true,” he added.

Former City Council Member Ben Kallos, the architect of LL18, stands by the law but acknowledges that some of its provisions may need reevaluation. “It’s good to see evidence that the number of short-term rentals in NYC has decreased,” Kallos said. “But I’m puzzled by how few hosts have been able to register. We need to close loopholes that allow condo owners in Class B buildings to keep renting out their units without the same limitations.”

Yedinsky, however, remains firm in his belief that the law’s current form is unsustainable. “We’re seeing the data now. The regulations haven’t reduced rents, and they haven’t increased vacancy rates. Instead, they’ve moved the activity underground,” he said.

A Call for Balance

As the debate over short-term rentals continues, Airbnb and its supporters are calling for a more balanced approach to regulation. They argue that while the city’s housing crisis needs to be addressed, LL18 has gone too far in penalizing small-time hosts who rely on short-term rentals for financial stability. “We’re not against regulation,” Yedinsky said. “We want to work with the city to create a system that works for everyone—one that addresses concerns about affordable housing while still allowing responsible hosts to operate legally.”

For homeowners like Gia Sharp and Malaika, the stakes couldn’t be higher. “This law has taken away our ability to make a living,” Sharp said. “We need relief, and we need it soon.” Malaika echoed the sentiment: “I don’t know how much longer I can hold on. My savings are gone, and I’m struggling every month. This isn’t what I signed up for when I bought my home.”

Airbnb’s blog post suggests that the solution lies in amending LL18 to allow more flexibility for homeowners, especially those in the outer boroughs. By rolling back parts of the law, the city could increase the supply of accommodations for visitors, support local businesses, and provide financial stability to resident hosts. “A more sustainable, sensible, and equitable model benefits residents, visitors, and the broader community,” Yedinsky said.

No Clear Resolution in Sight

New York City’s housing and tourism sectors are at a crossroads, with the future of short-term rentals hanging in the balance. As Local Law 18 enters its second year of enforcement, the city’s leadership faces increasing pressure to reevaluate the law’s effectiveness. With rents still rising, tourism booming, and small hosts struggling, it’s clear that the law has created unintended consequences that may require a different approach.

“The housing crisis isn’t going away,” said Randy Peers. “But we can’t ignore the economic realities facing small-time hosts and local businesses. We need a balanced solution that addresses both sides of the issue.” As Airbnb and its supporters continue their push for reform, the city will have to decide whether to stick with its hardline stance or find a compromise that works for everyone.

In the meantime, the debate over short-term rentals rages on with no clear resolution in sight. As Airbnb CEO Brian Chesky prepares to speak at the upcoming Skift Global Forum, the company’s future in New York City remains uncertain. But one thing is clear: Airbnb is not giving up its fight to stay in the Big Apple.

Recently, angel investor Ben Lang curated a list of 27 startups that have each raised between $10M and $50M from top-tier venture capital funds. These companies are not only growing at a rapid pace but are also actively hiring, making them the ones to watch in 2024.

Here’s a deep dive into these promising startups that are shaping the future across various industries.

1. Attio – Next-Generation CRM (US Remote / EU Remote)

Attio is revolutionizing the CRM landscape by offering a tool that is as dynamic as the teams that use it. Attio’s CRM is designed to adapt to the unique workflows of modern businesses, providing unparalleled flexibility and power. “Our mission is to redefine how businesses interact with their data, making CRMs more intuitive and actionable,” says the Attio team. With remote opportunities available, Attio is a top choice for professionals seeking to work in a cutting-edge environment.

2. Consensus – AI Search Engine for Scientific Research (US Remote)

Consensus is bringing AI to the forefront of scientific research with a search engine that leverages AI to provide researchers with precise and relevant results. “We are here to enhance the scientific discovery process by making research more accessible and efficient,” says the company’s leadership. This startup is ideal for those passionate about AI and its applications in academia and industry.

3. Slingshot AI – Mental Health AI Research (NYC / London)

Mental health is one of the most pressing issues today, and Slingshot AI is addressing it head-on with AI-powered research tools designed to understand and improve mental health outcomes. “We believe in the power of AI to revolutionize mental health research and treatment,” the founders explain. Their mission-driven approach is attracting top talent in both New York City and London.

4. OpusClip – AI Video Repurposing (Canada / Bay Area)

OpusClip offers a groundbreaking solution for content creators, allowing them to repurpose videos effortlessly using AI. “Our technology enables creators to maximize their content’s value by making it easy to create new clips from existing material,” says OpusClip’s team. This startup is a haven for those interested in video technology and AI.

5. Comun – Bank for Immigrants in the U.S. (NYC)

Comun is redefining banking for immigrants in the U.S. by providing tailored financial services that meet their unique needs. “We’re building a financial platform that empowers immigrants to achieve their American dream,” says Comun’s leadership. This NYC-based startup is perfect for those passionate about fintech and social impact.

6. Bland AI – Automated Phone Calls with AI (Bay Area)

Bland AI is automating one of the most time-consuming tasks in customer service: phone calls. By leveraging AI, Bland AI ensures that customers receive timely and accurate information without the wait times. “Our goal is to make customer interactions smoother and more efficient,” the team says. Professionals in AI and customer experience will find exciting opportunities here.

7. Viggle – AI Video Generation (London)

Viggle is at the cutting edge of AI-driven video generation, offering tools that allow businesses and creators to produce high-quality videos quickly and easily. “We’re pushing the boundaries of what’s possible with AI in video production,” says Viggle’s founders. Based in London, this startup is perfect for those interested in AI, video technology, and creative industries.

8. Tilt – Real-Time Fashion Shopping (Toronto)

Tilt is changing the way we shop for fashion by offering a real-time shopping experience that connects users with the latest trends as they happen. “We believe shopping should be as dynamic and exciting as the fashion world itself,” the team shares. Tilt is a great fit for those with a passion for fashion and e-commerce.

9. Solace – Platform to Empower Patients (US / Remote)

Solace is empowering patients by providing them with tools and resources to take control of their health. “We’re creating a platform that puts patients at the center of their healthcare journey,” says Solace’s leadership. This remote-friendly startup is ideal for professionals in health tech and patient advocacy.

10. Lettuce Financial – Accounting and Tax Solution for Solopreneurs (US Remote)

Lettuce Financial is simplifying accounting and tax management for solopreneurs, offering a platform that automates these processes. “Our goal is to take the headache out of finances for solopreneurs so they can focus on growing their businesses,” the team explains. This startup offers remote opportunities in the booming fintech sector.

11. AstroForge – Asteroid Mining (Seal Beach, CA)

AstroForge is turning science fiction into reality with its asteroid mining ventures. “We’re unlocking the potential of space resources to fuel the next wave of technological advancement,” says AstroForge’s leadership. This ambitious startup is for those who dream big and are excited about space exploration.

12. Onebrief – Military Planning and Collaboration Software (Remote / San Diego)

Onebrief provides cutting-edge software for military planning and collaboration, ensuring that teams can work together effectively even in the most challenging environments. “Our software is designed to support the critical work of military planners, providing the tools they need to succeed,” the team shares. This startup offers remote and San Diego-based roles for those interested in defense technology.

13. DEFCON AI – Modeling, Simulation, Analysis Software for the Military (Washington DC / Remote)

DEFCON AI is enhancing military preparedness through advanced modeling, simulation, and analysis software. “We’re helping the military make better decisions faster,” says DEFCON AI’s leadership. With opportunities in Washington DC and remotely, this startup is a prime destination for those interested in AI and defense.

14. Eppo – Experimentation and Feature Management Platform (Remote US / EMEA)

Eppo provides a platform that allows companies to run experiments and manage features more effectively, driving better business outcomes. “We’re enabling companies to innovate faster and with greater confidence,” says the Eppo team. With roles available remotely, Eppo is perfect for those interested in product management and data-driven decision-making.

15. Trunk Tools – AI for the Construction Industry (Remote US)

Trunk Tools is bringing AI to the construction industry, offering solutions that improve efficiency and safety on job sites. “We’re transforming construction with the power of AI,” the team states. This remote-friendly startup is ideal for professionals interested in AI and construction technology.

16. CodeRabbit – AI Code Reviews (Bay Area / Remote / Bangalore)

CodeRabbit is revolutionizing the code review process with AI, making it faster and more accurate. “Our platform is the most installed AI app on GitHub and GitLab, and we’re just getting started,” says CodeRabbit’s leadership. With opportunities in the Bay Area, remotely, and in Bangalore, this startup is a great fit for developers and AI enthusiasts.

17. Pylon – Support Platform for B2B Companies (Bay Area)

Pylon offers a comprehensive support platform for B2B companies, helping them manage customer interactions and service delivery more effectively. “We’re building the infrastructure that B2B companies need to succeed,” says Pylon’s team. Based in the Bay Area, Pylon is a top choice for those interested in B2B technology and customer support.

18. Capitalize – Platform to Find and Transfer Retirement Assets (NYC)

Capitalize is simplifying the process of finding and transferring retirement assets, helping users take control of their financial future. “We’re making it easier for people to manage their retirement savings,” says the Capitalize team. This NYC-based startup is perfect for professionals in fintech and financial planning.

19. Encord – Data Engine for AI Model Development (London / Bay Area)

Encord provides the data engine that powers AI model development, offering tools that streamline the data preparation process. “We’re accelerating AI innovation by making data more accessible and actionable,” the team explains. With offices in London and the Bay Area, Encord is a great destination for those passionate about AI and data science.

20. Setpoint – Operating System for Capital Markets (US Remote)

Setpoint is building the operating system for capital markets, providing the infrastructure needed for efficient trading and investment management. “We’re redefining how capital markets operate, making them more transparent and accessible,” says Setpoint’s leadership. This remote-friendly startup is ideal for those interested in fintech and financial markets.

21. MD Ally | 911 Network Navigation – 911 Diversion, Care, and Navigation Solutions (US Remote)

MD Ally offers innovative solutions for 911 diversion, care, and navigation, helping to improve emergency response outcomes. “We’re transforming how emergency services are delivered, making them more effective and efficient,” the team shares. With remote opportunities available, MD Ally is perfect for those passionate about healthcare and public safety.

22. Bridge – Stablecoin Payment Network (Bay Area)

Bridge is building a stablecoin payment network that promises to revolutionize how we transact in the digital age. “We’re creating a more stable and secure way to handle digital payments,” says Bridge’s founders. Based in the Bay Area, this startup is ideal for professionals interested in blockchain and fintech.

23. Supio – AI Platform for Law Firms (Seattle)

Supio is bringing AI to the legal industry, offering a platform that helps law firms manage cases and client interactions more effectively. “We’re empowering law firms with the tools they need to succeed in a digital world,” says the Supio team. This Seattle-based startup is a great fit for those interested in legal tech and AI.

24. Ema Unlimited – Gen AI Platform for Enterprises (US / Canada / India Remote)

Ema Unlimited is harnessing the power of generative AI to create solutions tailored for enterprise needs. “We’re pushing the boundaries of what generative AI can do for businesses,” says Ema Unlimited’s leadership. With remote roles available across the US, Canada, and India, this startup is perfect for AI enthusiasts looking to make a big impact.

25. The Rounds – Sustainable Household Essentials (NYC / Philly)

The Rounds is making sustainability simple by offering household essentials that are both eco-friendly and convenient. “We’re helping people live more sustainably without sacrificing convenience,” says the team at The Rounds. Based in NYC and Philly, this startup is ideal for those passionate about sustainability and consumer goods.

26. PayZen – OS for Healthcare Affordability (Remote US / Bay Area / Tel Aviv)

PayZen is tackling the challenge of healthcare affordability with an operating system that helps patients manage their medical expenses. “We’re making healthcare more affordable and accessible for everyone,” says the PayZen team. With roles available remotely, in the Bay Area, and Tel Aviv, this startup is perfect for those interested in healthcare and fintech.

27. Starpath – Propellant for the Space Economy (Hawthorne, CA)

Starpath is fueling the space economy with its advanced propellant technologies, pushing the boundaries of space exploration. “We’re providing the propellants that will power the next generation of space missions,” says Starpath’s leadership. Based in Hawthorne, CA, this startup is ideal for those passionate about space technology and innovation.

Ben Lang provided the list with all the links here:

Final Thoughts

These 27 startups represent some of the most exciting opportunities in the tech world today. Whether you’re looking to invest, join a groundbreaking company, or simply stay informed about the latest trends, these companies are worth keeping an eye on.

As Ben Lang, the angel investor who compiled this list, aptly puts it, “These startups are not just building the future; they’re also looking for the people who will help them create it.” With many of these companies actively hiring, now is the perfect time to explore new opportunities and become part of the next wave of innovation.

The timing of the blackout couldn’t have been worse for DirecTV customers. The channels went dark just before the highly anticipated USC-LSU football game on ABC and during ESPN2’s coverage of the U.S. Open. With the NFL season kickoff only days away, the disruption has left subscribers scrambling for alternatives, and many are questioning the rationale behind the impasse.

The Root of the Dispute

At the heart of the dispute is money—specifically, the fees Disney is demanding from DirecTV to carry its popular channels. According to Rob Thun, DirecTV’s Chief Content Officer, “Disney is seeking too much money for what they are granting us.” Thun’s frustration is evident as he criticizes Disney for what he sees as unreasonable demands, particularly as the satellite broadcaster grapples with the ongoing challenges of a shrinking pay-TV market.

Disney, on the other hand, counters that it is merely seeking rates consistent with what other major distributors are already paying. “DirecTV is seeking rates that aren’t in line with what other major distributors pay to carry our networks,” stated Justin Connolly, President of Disney Platform Distribution. The crux of Disney’s argument is that as the cost of producing high-quality content—especially live sports—continues to rise, they must secure appropriate compensation to maintain their robust programming lineup.

But the financial disagreement is just one piece of the puzzle. DirecTV has been pushing for more flexibility in how it packages and sells Disney’s channels to its customers. The traditional pay-TV model, which bundles a large number of channels into a single package, has been losing favor with consumers who increasingly prefer more customizable options. DirecTV’s proposal to offer genre-specific bundles, such as a sports-centric package including ESPN and ABC, has met resistance from Disney, particularly over the issue of “minimum penetration levels,” which dictate how many households must subscribe to each channel package.

A History of Contentious Negotiations

This isn’t the first time Disney has found itself in a carriage dispute with a major distributor. Just last year, Disney’s channels went dark on Charter Communications’ Spectrum service for over a week before a last-minute agreement was reached. That blackout, much like the current one, occurred at a critical time—just before the first “Monday Night Football” game of the season—highlighting the recurring nature of these disputes as content providers and distributors clash over the future of television.

DirecTV, the third-largest video provider in the U.S., has been vocal about the need for a new distribution model. In a recent company blog post, Thun criticized programmers like Disney for “eroding the price-value proposition for pay-TV customers by shifting the best programming to direct-to-consumer services while raising programming fees on pay TV.” The frustration among distributors like DirecTV is palpable as they struggle to adapt to a rapidly changing media landscape where streaming services like Netflix, Disney+, and ESPN+ are increasingly taking center stage.

Public Outcry and Corporate Blame Game

The public reaction to the blackout has been swift and fierce, with many DirecTV subscribers taking to social media to express their anger. Comments like “WTF DirecTV and ESPN” and “There’s no way DirecTV just shut off all ESPN/Disney/ABC services…” flooded platforms like X (formerly Twitter), with some users threatening to cancel their subscriptions altogether. “ESPN or DirecTV needs to die .. who does this in the middle of a program .. do this at 2am,” tweeted one frustrated viewer, capturing the sentiment of many who feel caught in the crossfire of a corporate battle.

In response to the outcry, both Disney and DirecTV have issued statements defending their positions. “DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the U.S. Open and gear up for college football and the opening of the NFL season,” said Disney in a joint statement from Dana Walden and Alan Bergman, Co-Chairmen of Disney Entertainment, and Jimmy Pitaro, Chairman of ESPN. The statement emphasized Disney’s commitment to delivering top-tier content and urged DirecTV to “finalize a deal that would immediately restore our programming.”

DirecTV’s Thun fired back, accusing Disney of refusing to be accountable to consumers and prioritizing profit over customer satisfaction. “Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers,” Thun asserted.

Impact on Sports Fans and the Broader Industry

The blackout has been particularly devastating for sports fans, who rely on ESPN for comprehensive coverage of major events like college football, the U.S. Open, and the NFL. The U.S. Tennis Association expressed disappointment, stating, “It is disappointing that fans and viewers around the country will not have the opportunity to watch the greatest athletes in our sport take part in the 2024 U.S. Open due to an unresolved negotiation between DirecTV and Disney.”

The broader implications of the dispute extend beyond just the inconvenience to viewers. The ongoing battle between content providers and distributors reflects the larger struggles facing the traditional pay-TV industry. As consumers increasingly cut the cord in favor of streaming services, the pressure on both sides to innovate and adapt has intensified. For Disney, this means finding a balance between maximizing revenue from its traditional channels while continuing to invest in its streaming platforms. For DirecTV, it means fighting for the flexibility to offer customers what they want without being held hostage to rising content costs.

What’s Next?

As negotiations between DirecTV and Disney continue, millions of subscribers are left in limbo, hoping for a resolution before the NFL season kicks off and more marquee sports events are missed. Industry analysts predict that a deal will eventually be struck, likely just before the start of the NFL season, when the pressure on both sides will be at its peak. However, the outcome of this dispute could set a precedent for future negotiations, particularly as the media landscape continues to evolve.

For now, DirecTV customers will have to make do without some of their favorite channels, and both companies will need to weigh the long-term costs of their standoff. As one frustrated subscriber put it, “This happens every year, right about the start of football season. When will they learn?”

The ongoing saga between DirecTV and Disney is a stark reminder of the complexities and challenges facing the television industry in the streaming era. Whether this dispute will lead to meaningful change in how content is packaged and distributed remains to be seen, but one thing is clear: the days of the traditional TV bundle are numbered, and both providers and programmers must adapt—or risk being left behind.

Police have increasingly used laws allowing for the seizure of property at the time of an arrest as justification for holding on to such property indefinitely. Individuals traveling with cash, electronics, or other valuables have effectively lost ownership of them simply as a result of being arrested—regardless of whether they were found guilty or innocent of any alleged crime, in some cases absent any charges at all.

In a case that made its way to United States Court of Appeals for the District of Columbia Circuit, Circuit Judges Gregory G. Katsas and Karen L. Henderson, as well as Senior Circuit Judge Harry T. Edwards, acknowledged that police are entitled to seize property in the course of an arrest.

The Fourth Amendment provides that “[t]he right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.” U.S. Const. Amend. IV. Under settled law, a seizure of personal effects incident to a lawful arrest is reasonable.

The judges then addressed whether the Fourth Amendment’s protections also applied to the length of time police could hold seized property.

This case presents the question whether the Fourth Amendment requires that any continued retention of such personal property—even after release of the arrested individuals—must also be reasonable. We hold that it does.

The Cases In Question

The judges then went on to highlight what has become an all-too common refrain, namely police continuing to hold on to seized property for months or years after seizure, despite no charges being filed.

In Cameron v. District of Columbia, five plaintiffs allege that they were among some 40 individuals arrested in a protest on August 13, 2020. Upon arresting them, the Metropolitan Police Department seized their personal effects, including their cell phones. The plaintiffs were quickly released, and the MPD neither pressed charges nor sought warrants to search or continue to possess the phones. Despite many phone calls and emails to the MPD and the U.S. Attorney’s Office, the plaintiffs were unable to get their phones back.

After more than a year of trying to have their property returned, the plaintiffs sued the District in federal court, a case that was ultimately dismissed. The soonest the plaintiffs were able to recover their phones was after 285 days. Others were able to do so after 312 days, and some more than a year and two months after they were arrested.

In yet another cited case, which was also dismissed by the district court, a journalist was arrested for photographing the protests. Like the original plaintiffs, hi was not charged, yet his cell phone was kept for nearly a year.

The judges again separate the validity of the initial arrest and seizure, versus the length of time the property remained in police custody.

All agree that the MPD’s arrest of the plaintiffs was reasonable under the Fourth Amendment. And it is blackletter aw that, during an arrest, police may seize personal property held by the arrestee without a warrant….So the District’s initial seizure of the plaintiffs’ effects did not violate the Fourth Amendment.

The question before us is whether the Fourth Amendment has anything to say about the many months in which the MPD allegedly continued to hold the plaintiffs’ effects with no legitimate investigatory or protective purpose. The District answers no. It contends that the Fourth Amendment governs the government’s taking of possession of an individual’s personal property, but not the government’s continued possession of the property.

We disagree. When the government seizes property incident to a lawful arrest, the Fourth Amendment requires that any continued possession of the property must be reasonable. We reach this conclusion based on the Fourth Amendment’s text and history, as well as modern Supreme Court precedents regarding the constitutionally permissible duration of seizures, whether of property or persons.

Supreme Court Precedent

Throughout their decision, the D.C. Circuit judges relied heavily on a 1984 decision by the Supreme Court in United States v. Jacobsen.

In United States v. Jacobsen, 466 U.S. 109 (1984), the government seized white powder, tested it, and determined that it was cocaine. Id. at 111. The Court had no trouble holding that the initial seizure was lawful because it was supported by probable cause. Id. at 120–22. But the Court was not finished; it also analyzed whether the field test was reasonable, because “a seizure lawful at its inception can nevertheless violate the Fourth Amendment because its manner of execution unreasonably infringes possessory interests protected by the Fourth Amendment’s prohibition on ‘unreasonable seizures.’” Id. at 124. The Court further explained that a seizure could become “unreasonable because its length unduly intruded upon constitutionally protected interests.”

The judges make the case that the seizure crossed into similar territory because of the length of time the MPD retained the plaintiffs’ phones, as well as the harm the plaintiffs suffered as a result.

These principles govern this case. The MPD’s initial seizure of the plaintiffs’ effects was lawful because it was incident to their arrests. Such seizures are reasonable to protect the safety of arresting officers and to prevent any destruction of evidence. See Riley, 573 U.S. at 381–85. But here, the plaintiffs allege that the government continued to possess their property for many months after it lacked any legitimate interest in protecting officers or investigating possible criminal behavior. And after the government’s legitimate interests dissipated, harm to the plaintiffs continued to accrue: It is one thing not to have access to a cell phone while spending a night in jail. It is quite another not to have access to it for the following year. Some plaintiffs allege that they had to replace their phones, a significant financial harm. And some allege that they lost access to important information like passwords, photographs, and contact information for friends and family. So the plaintiffs have alleged that the seizures at issue, though lawful at their inception, later came to unreasonably interfere with their protected possessory interests in their own property

Historical Context

The Judges also go into a lengthy analysis of whether the Fourth Amendment protection against “unreasonable searches and seizures” applies only to the moment of seizure—in which case the original district court’s decision was correct—or if it applies to the entire time a person’s property remains seized.

While the Fourth Amendment does not explicitly spell out which scenario is meant, the court was able to apply historical context in their decision.

History helps resolve this semantic ambiguity. Because the Fourth Amendment codified a “pre-existing right,” District of Columbia v. Heller, 554 U.S. 570, 592 (2008), it “must be read in light of” its history, Chimel v. California, 395 U.S. 752, 760–61 (1969). And history favors the plaintiffs. As explained below, the Fourth Amendment protects possessory interests against government infringement in the same way that Founding-era common law protected possessory interests against private infringement. And the common law authorized actions for damages and recovery of property that was lawfully taken, but then unlawfully possessed. History thus indicates that the government’s continued possession of the plaintiffs’ property must be reasonable.

The Fourth Amendment grew out of Antifederalist criticism of the original Constitution. Patrick Henry opposed ratification in part because “any man may be seized, any property may be taken, in the most arbitrary manner, without any evidence or reason.” 3 Debates in the Several State Conventions on the Adoption of the Federal Constitution 588 (Jonathan Elliott ed., 1891). This criticism was especially salient to the many who considered the Crown’s seizures of personal property to be among the grievances justifying the Revolutionary War—with some colonists comparing British officers to “thieves” or lamenting that they would “take and carry away” their property without cause.

Taking that historical context into account, the court came to the conclusion that the Fourth Amendment must apply to the length of the seizure.

In other words, the common law recognized that property interests are impaired not only at the instant when an owner loses possession, but also for as long as the owner cannot get the property back. And it provided remedies for wrongful interference with possessory rights regardless of whether the interference became wrongful at the moment of the initial seizure or only later. This history indicates that the Fourth Amendment governs the MPD’s continued retention, as well as its taking possession, of the plaintiffs’ property.

Mixed Legal Precedent

Despite the well-reasoned explanation, the D.C. Circuit is someone unique in its decision. In a concurring opinion, Judge Henderson acknowledged that five other circuit courts―the First, Second, Sixth, Seventh and Eleventh—have arrived at different decisions. As Judge Henderson points out, however, the other courts failed to take into account the Supreme Court precedent.

Granted, we should hesitate before rejecting a robust consensus from our sister circuits but here, I believe, their reasoning lacks the power to persuade because they fail to discuss the key Supreme Court precedent, United States v. Jacobsen, 466 U.S. 109 (1984).

The D.C. Circuit’s decision will likely have a profound impact on police seizures moving forward, providing citizens a level of protection imagined by the Founding Fathers.

The decision comes on the heels of two other decisions strengthening citizens’ rights, one that ruled ruled the Fourth Amendment applies at the US border, and the other ruling that geofence warrants are “categorically prohibited by the Fourth Amendment.”

The Pixel 9 Pro Fold is Google’s second-gen foldable phone, and early reports indicate that it is a major improvement over the first-gen model. The original Pixel Fold was widely considered to be a very good first attempt at a foldable, but fell behind popular models made by more established players in the foldable market, like Samsung.

With the second-gen model improving many of the complaints about the first one, users will no doubt be looking forward to upgrading to the new model, or switching to it from a non-foldable. Unfortunately for AT&T users, the company has told CNET that it does not plan to carry the model.

At this point, it is not clear why AT&T has no plans to carry the phone, especially since it will carry the rest of the Pixel 9 lineup. What’s more, the carrier also carried the original Fold.

As of the time of writing, CNET says it has reached out to AT&T to confirm that an unlocked Pixel 9 Pro Fold will work on the carrier’s network, but there has been no confirmation yet.

Ortberg’s Message to Boeing Employees

Kelly Ortberg began his tenure with a heartfelt and motivational message to Boeing employees, highlighting his commitment to restoring trust and emphasizing the importance of teamwork. “Restoring trust starts with meeting our commitments—whether that’s building high-quality, safe commercial aircraft, delivering on defense and space products, or servicing our products to keep our customers running 24/7,” Ortberg wrote. “It also means meeting our commitments to each other and working collaboratively across Boeing to meet our goals.”

Ortberg’s emphasis on quality and safety is a direct response to the issues Boeing has faced in recent years. The company has been under intense scrutiny due to production delays and safety concerns, particularly surrounding the 737 MAX. “People’s lives depend on what we do every day, and we must keep that top of mind with every decision we make,” Ortberg stressed, underscoring the critical nature of their work.

In his message, Ortberg also shared his plans to be hands-on and visible within the company. “Because what we do is complex, I firmly believe that we need to get closer to the production lines and development programs across the company. I plan to be based in Seattle so that I can be close to the commercial airplane programs,” he stated. This approach is reminiscent of Ortberg’s tenure at Rockwell Collins, where he was known for removing VIP parking spots to promote equality and often parking far from the building himself to set an example. Brad Neilly, a former employee, recalled how Ortberg’s actions made a big impact on him and other employees​.

Ortberg’s message also highlighted his intention to engage directly with employees and stakeholders. “In fact, I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans. Soon I’ll be visiting many of our sites and I look forward to meeting with teammates around the world,” he said. This commitment to being present and involved is expected to foster a stronger connection between leadership and the workforce, a critical step in addressing the cultural and operational issues that have plagued Boeing.

The new CEO’s approach has already garnered positive reactions from within the company. “Ortberg’s willingness to be on the ground and listen to employees is exactly what Boeing needs right now,” said an anonymous Boeing employee on X (formerly Twitter). “It’s a sign that he’s serious about making real changes and addressing the issues we’ve been facing head-on.”

Ortberg concluded his message with a pledge for transparency and regular communication. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better. You’ll begin to see routine reports from me through email and our BNN channel, giving you timely updates of what I’m seeing and hearing on the ground from our teammates and our stakeholders.” This promise of open communication is seen as a crucial element in rebuilding trust and fostering a collaborative environment within Boeing​ .

A Hands-On Leader for Troubled Times

Kelly Ortberg’s appointment as Boeing’s CEO is seen as a strategic move to steer the company through a period of significant turbulence. Known for his hands-on approach, Ortberg is expected to bring much-needed stability and a renewed focus on quality and safety. His tenure at Rockwell Collins demonstrated his ability to address both strategic and operational challenges effectively, a trait that Boeing desperately needs as it navigates its current crises.

Ortberg’s reputation for being on the factory floor and engaging directly with employees has already started to instill confidence within Boeing. “Kelly is a person who will do that,” said Don Beall, former CEO of Rockwell International. “He’s a very hands-on guy. He’ll get out on the shop floor.” This approach is crucial for Boeing, as it has faced significant issues with production delays and quality control that have tarnished its reputation and strained its finances.

His immediate predecessor, David Calhoun, also emphasized Ortberg’s suitability for the role. “Kelly’s leadership style and industry expertise make him uniquely qualified to lead Boeing during this critical time,” Calhoun stated. Ortberg’s focus on building strong teams and running complex engineering and manufacturing companies aligns with the needs of Boeing as it seeks to restore its standing in the aerospace industry.

Ortberg’s background in engineering and deep understanding of aerospace manufacturing processes position him well to address the intricate challenges Boeing faces. Alan Mulally, former head of Boeing’s commercial business, highlighted Ortberg’s experience: “Kelly was key in developing the cockpit for the 777 and 787 jetliners—from flight control to vision systems to maps. This required him to navigate the needs of Boeing, suppliers, pilots, regulators, and air traffic officials.”

Moreover, Ortberg’s commitment to a hands-on leadership style extends beyond his interactions with employees. His strategic vision includes leveraging his deep industry relationships to rebuild trust with customers and regulators. “In speaking with our customers and industry partners leading up to today, I can tell you that without exception, everyone wants us to succeed. In many cases, they need us to succeed,” Ortberg emphasized in his message to employees. This network of support is critical as Boeing works to overcome its current challenges and position itself for future success.

Industry analysts have also noted Ortberg’s potential to bring about meaningful change at Boeing. “You couldn’t ask for a better selection,” aviation analyst Richard Aboulafia told Flightglobal. “His experience and leadership style are exactly what Boeing needs to navigate through these troubled times and emerge stronger.”

Ortberg’s early decisions, such as choosing to base himself in Seattle to be closer to the production lines, signal his commitment to understanding and addressing the company’s core issues firsthand. This decision is seen as a move to bridge the gap between Boeing’s leadership and its manufacturing workforce, fostering a culture of collaboration and accountability.

Kelly Ortberg’s hands-on leadership and deep industry expertise are critical assets in Boeing’s effort to navigate its current challenges and rebuild its reputation as an industry leader. His approach is expected to drive the company towards a more stable and prosperous future, focusing on quality, safety, and operational excellence.

Strategic Vision and Commitment to Quality

Kelly Ortberg’s strategic vision for Boeing is rooted in his commitment to restoring the company’s reputation for quality and safety. His message to employees underscored the importance of these values, emphasizing that Boeing’s success hinges on its ability to deliver high-quality, safe products. “Restoring trust starts with meeting our commitments—whether that’s building high-quality, safe commercial aircraft, delivering on defense and space products, or servicing our products to keep our customers running 24/7,” Ortberg wrote.

Ortberg’s strategic vision also includes a renewed focus on collaboration and transparency. He has pledged to keep employees informed through regular updates, sharing progress and improvement areas. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better,” he stated. This approach is expected to foster a culture of accountability and continuous improvement, which is crucial for Boeing as it addresses its current challenges.

In addition to improving internal processes, Ortberg is focused on strengthening relationships with customers and industry partners. “In speaking with our customers and industry partners leading up to today, I can tell you that everyone wants us to succeed without exception. In many cases, they need us to succeed,” he emphasized. This support network is critical as Boeing works to overcome its current issues and rebuild trust within the industry.

Ortberg’s commitment to quality is further demonstrated by his decision to be based in Seattle, close to the commercial airplane programs. “I plan to be based in Seattle near the commercial airplane programs. I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome,” he mentioned in his message. This hands-on approach is expected to help identify and resolve production issues more effectively, ensuring that Boeing’s products meet the highest quality and safety standards.

Former colleagues and industry analysts have praised Ortberg’s focus on quality and strategic vision. “Kelly is not the kind of person to shoot from the hip. He’s deliberate and thorough, which is exactly what Boeing needs right now,” said Andrew Policano, a former business-school dean who worked closely with Ortberg at Rockwell Collins. Aviation analyst Richard Aboulafia echoed this sentiment, stating, “His experience and leadership style are exactly what Boeing needs to navigate through these troubled times and emerge stronger.”

By prioritizing quality, transparency, and collaboration, Ortberg aims to steer Boeing towards a more stable and prosperous future. His strategic vision and hands-on leadership are expected to drive meaningful change within the company, restoring its reputation as a leader in the aerospace industry.

Addressing Cultural and Operational Challenges

Kelly Ortberg’s appointment as Boeing’s CEO comes at a time when the company faces significant cultural and operational challenges. One of the most pressing issues is Boeing’s internal culture, which has been described as overly focused on production at the expense of quality and safety. This “push, push, push, go, go, go” mentality has been identified as a contributing factor to the company’s recent problems, including the two fatal 737 MAX crashes. Ortberg acknowledges these challenges and is determined to address them head-on.

“Our culture must evolve to prioritize safety and quality above all else,” Ortberg wrote in his message to employees. “We must create an environment where employees feel empowered to speak up about potential issues without fear of retribution.” This commitment to fostering an open and transparent culture is seen as a crucial step in rebuilding trust both within the company and with external stakeholders.

To facilitate this cultural shift, Ortberg plans to spend significant time on the factory floors, engaging directly with employees. “I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans,” he stated. This approach is reminiscent of his time at Rockwell Collins, where he was known for his hands-on leadership style and for being deeply involved in the day-to-day operations.

Former colleagues have expressed confidence in Ortberg’s ability to transform Boeing’s culture. “Kelly is a very hands-on guy. He’ll get out on the shop floor and work directly with employees to understand their challenges and find solutions,” said Don Beall, former CEO of Rockwell International. This leadership style is expected to help bridge the gap between management and the workforce, fostering a more collaborative and supportive environment.

In addition to cultural changes, Ortberg is also focused on operational improvements. Boeing has been grappling with production delays, quality lapses, and increased scrutiny from regulators. “We need to get back to basics,” Ortberg emphasized. “This means ensuring that our production processes are efficient and that our products meet the highest standards of quality and safety.” He has already begun reviewing the company’s safety and quality plans, with a particular focus on addressing the issues that have led to recent production mishaps.

Industry experts believe that Ortberg’s experience and approach will be instrumental in driving these operational improvements. “Kelly’s deep understanding of the aerospace industry and his commitment to quality make him well-suited to tackle Boeing’s current challenges,” said Alan Mulally, former head of Boeing’s commercial business. By focusing on both cultural and operational changes, Ortberg aims to steer Boeing through its current crisis and set the company on a path to long-term success.

Overall, Kelly Ortberg’s comprehensive strategy to address Boeing’s cultural and operational challenges reflects his commitment to restoring the company’s reputation and ensuring its future stability. With his hands-on leadership and focus on transparency, safety, and quality, Ortberg is poised to lead Boeing through this critical period in its history.

Union and Workforce Impact

Kelly Ortberg’s leadership at Boeing is set to have a significant impact on the company’s unionized workforce. Boeing’s labor relations have been strained in recent years, particularly with the International Association of Machinists and Aerospace Workers (IAM), which represents a large portion of the company’s employees. The union has raised concerns about job security, working conditions, and the company’s approach to production and safety standards.

Ortberg’s message to employees highlighted his commitment to improving these relations. “I plan to engage directly with our union representatives to ensure that we are addressing their concerns and working collaboratively towards our common goals,” Ortberg wrote. This direct engagement is seen as a positive step towards rebuilding trust and fostering a more cooperative relationship between Boeing’s management and its workforce.

Union leaders have expressed cautious optimism about Ortberg’s appointment. “We are hopeful that Kelly Ortberg’s hands-on approach and his focus on safety and quality will lead to meaningful improvements in our working conditions,” said John Holden, President of IAM District 751. “We look forward to working with him to address the issues that have been affecting our members.”

One of the immediate challenges Ortberg faces is addressing the potential for a strike by IAM members. The union has been vocal about its demands for better job security and a commitment from Boeing to maintain production in the Seattle area. “Our members are prepared to take action if necessary, but we are optimistic that we can reach an agreement with the new leadership,” Holden added.

Ortberg’s decision to be based in Seattle and his plans to spend significant time on the factory floors have been well received by the union. “Having the CEO close to the production lines and understanding our day-to-day challenges is crucial,” said Mike Mulligan, a machinist at Boeing’s Renton facility. “It shows that he is serious about addressing our concerns and making improvements.”

The impact of Ortberg’s leadership on Boeing’s workforce extends beyond the unionized employees. His focus on transparency and open communication is expected to foster a more inclusive and supportive workplace culture. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better,” Ortberg promised in his message to employees. This commitment to transparency is aimed at building trust and ensuring that all employees feel valued and heard.

Kelly Ortberg’s approach to labor relations and workforce engagement is set to play a crucial role in Boeing’s turnaround. By prioritizing direct engagement with union representatives, addressing key concerns, and fostering a culture of transparency and collaboration, Ortberg aims to rebuild trust and create a more positive working environment for all Boeing employees.

Financial Outlook and Market Response

The appointment of Kelly Ortberg as Boeing’s new CEO has had a notable impact on the company’s financial outlook and the market’s response. Ortberg’s reputation as a strategic thinker with a hands-on approach has instilled confidence among investors and industry analysts alike. As Boeing navigates through its turbulent times, Ortberg’s leadership is seen as a potential catalyst for the company’s recovery.

In the immediate aftermath of the announcement on July 31, 2024, Boeing’s stock saw a modest uptick. Market analysts attribute this rise to Ortberg’s track record at Rockwell Collins, where he successfully led the company through significant growth and transformation. “Ortberg’s experience in turning around Rockwell Collins makes him an ideal candidate to steer Boeing through its current challenges,” said Richard Aboulafia, an aviation analyst at Teal Group. “Investors are cautiously optimistic about his ability to replicate that success at Boeing.”

Financial experts are closely monitoring Ortberg’s strategy to address Boeing’s ongoing issues, including production delays and quality control problems. “Boeing’s financial performance has been underwhelming, with substantial operating losses in recent quarters,” noted Sheila Kahyaoglu, an aerospace and defense analyst at Jefferies. “However, Ortberg’s commitment to quality and operational efficiency could help reverse this trend.”

In his initial message to Boeing employees, Ortberg emphasized the importance of meeting commitments and restoring trust. “Restoring trust starts with meeting our commitments,” Ortberg wrote. “Whether that’s building high-quality, safe commercial aircraft or delivering on defense and space products, our success depends on our ability to deliver what we promise.” This focus on reliability and customer satisfaction is expected to resonate well with Boeing’s clients and stakeholders, potentially leading to improved financial performance in the coming quarters.

The market response has been tempered by the acknowledgment of the significant challenges ahead. Boeing’s recent financial results have highlighted the depth of the company’s issues, with an operating loss of $1.4 billion in the second quarter of 2024. “The financial recovery of Boeing will be a marathon, not a sprint,” said Peter Arment, an analyst at Baird. “Ortberg’s leadership is a positive step, but it will take time for the company to regain its footing and achieve sustainable profitability.”

Ortberg’s decision to relocate to Seattle and focus on the commercial airplane programs is also seen as a strategic move to be closer to Boeing’s core operations. “Being based in Seattle allows Ortberg to have a direct line of sight into the production challenges and to engage with the workforce more effectively,” said Ron Epstein, an aerospace analyst at Bank of America Merrill Lynch. “This hands-on approach is crucial for addressing the issues that have plagued Boeing’s production lines.”

While the road to recovery for Boeing is fraught with challenges, the appointment of Kelly Ortberg as CEO has injected a sense of cautious optimism among investors and industry stakeholders. His focus on transparency, quality, and operational efficiency, coupled with his hands-on leadership style, is expected to drive positive changes within the company. “We have what it takes to win, and I’m committed to working with you to focus the company in a way that makes us all proud to be a part of Boeing,” Ortberg stated in his message to employees. As Boeing embarks on this new chapter under Ortberg’s leadership, the market will be watching closely to see how his strategies unfold and impact the company’s financial trajectory.

Dimon’s Recession Prediction: Key Takeaways

Jamie Dimon, renowned for his economic foresight, expressed his belief that the U.S. economy is not out of the woods yet and could be heading toward a recession. “There’s still a chance of a recession,” Dimon stated, emphasizing the need for vigilance despite some positive economic signs. This sentiment aligns with his previous warnings, underscoring the persistent risks in the current economic landscape.

Economic Indicators and Warning Signs

Dimon pointed to several key factors contributing to his recession prediction:

1. Interest Rates and Inflation: The Federal Reserve’s aggressive interest rate hikes to combat inflation have been a double-edged sword. While inflation has shown signs of cooling, the high borrowing costs are beginning to strain consumer spending and business investments. “The interest rate hikes are necessary, but they come with significant economic side effects,” Dimon noted.
2. Geopolitical Uncertainty: Global tensions, particularly the ongoing conflict in Ukraine and its ramifications on energy markets, continue to pose significant risks. Dimon highlighted that geopolitical instability could exacerbate economic volatility, leading to further market disruptions.
3. Corporate Earnings Pressure: Many companies, including those within JPMorgan’s portfolio, are experiencing squeezed profit margins due to rising input costs and supply chain challenges. Dimon mentioned, “Corporate earnings are under pressure, and this could lead to broader economic consequences if the trend continues.”

Consumer Sentiment and Spending

Dimon also touched upon consumer sentiment, which has shown signs of weakening. Despite a robust labor market, consumers are becoming increasingly cautious. “The consumer is still spending, but there’s a noticeable pullback in discretionary spending,” Dimon said, reflecting concerns over future economic stability.

Market Reaction and Economic Strategies

Following Dimon’s comments, financial markets responded with heightened caution. Investors are now grappling with mixed signals—solid corporate earnings in some sectors juxtaposed with Dimon’s recession warnings. This has led to increased market volatility as stakeholders try to navigate the uncertain terrain.

Policy Recommendations and Forward Guidance

Dimon offered several policy recommendations to mitigate the recession risks. He emphasized the importance of targeted fiscal policies to support vulnerable sectors and sustain consumer confidence. Additionally, he advocated for continued investment in infrastructure and technology to bolster long-term economic resilience.

Financial Sector Resilience

Dimon highlighted the resilience of the financial sector, emphasizing that banks, including JPMorgan, are well-capitalized and prepared to withstand economic shocks. “Our balance sheet is strong, and we are prepared for various economic scenarios,” Dimon assured. He also pointed out that regulatory reforms implemented after the 2008 financial crisis have strengthened the banking system.

Technological Investments and Innovations

In discussing the future, Dimon underscored the importance of technological investments. “Innovation in financial technology is crucial for maintaining competitiveness and enhancing customer experiences,” he said. JPMorgan has been at the forefront of adopting new technologies, from blockchain to artificial intelligence, to streamline operations and offer innovative services.

Global Economic Outlook

Dimon also addressed the broader global economic outlook, noting that while the U.S. faces significant challenges, it is not isolated. “Global economies are interconnected, and what happens in one part of the world can have ripple effects elsewhere,” he said. He emphasized the need for international cooperation to address global economic issues, particularly in trade and investment.

Navigating Uncertainty

As the economy stands at a potential crossroads, Jamie Dimon’s insights are a critical reminder of the complex interplay between monetary policy, geopolitical factors, and consumer behavior. While the path remains uncertain, Dimon’s prudent warnings and strategic recommendations provide a roadmap for navigating the potential economic turbulence.

Jamie Dimon’s outlook underscores the need for vigilance and strategic planning as the U.S. economy faces potential challenges. By understanding and addressing the underlying factors, policymakers, businesses, and consumers can better prepare for the future.

Streaming Profit Milestone

Disney’s streaming unit achieved a significant milestone this quarter, marking its first-ever profitability with an operating income of $47 million on $6.38 billion in revenue. This achievement came a quarter earlier than expected and demonstrates the success of Disney’s strategic focus on content and pricing. “We were losing $1 billion a quarter not that long ago,” said Chief Financial Officer Hugh Johnston. “This is a testament to our efforts in enhancing content quality and managing costs effectively.”

The company attributes much of this success to its premium content strategy. CEO Bob Iger emphasized, “The rise in the quality of Disney’s content justifies our price increases.” Notable releases such as “Inside Out 2” and “Deadpool & Wolverine” have driven substantial subscriber growth and engagement. Since its release, “Inside Out 2” has sold nearly $1.6 billion in tickets globally, while “Deadpool & Wolverine” has generated $824 million in global ticket sales.

Disney has also been proactive in adjusting its pricing strategy to reflect the enhanced value of its offerings. Recent price hikes for nearly all its streaming plans, effective in October, have been well-received by the market. “Every time we’ve taken a price increase, we’ve had only modest churn,” Iger noted, indicating strong consumer loyalty and satisfaction with the service.

Looking ahead, Disney expects continued growth in its streaming segment. The addition of high-quality content and innovative features, such as playlists and an improved recommendation engine, are aimed at increasing user engagement and reducing churn. The company forecasts further increases in both subscription numbers and revenue, positioning its streaming services for sustained profitability.

Theme Parks Face Pressures

Despite Disney’s overall strong financial performance, its Experiences segment, which includes theme parks, has shown signs of strain. Operating income for this unit fell by 3.3% to $2.22 billion, despite a slight revenue increase to $8.39 billion. CFO Hugh Johnston acknowledged the challenges, noting, “While attendance was flat, per-visitor spending rose slightly. However, increased costs and soft consumer demand have impacted our profitability.”

The decline in operating income has raised concerns among analysts. “We are seeing some normalization of post-COVID demand,” Johnston explained, emphasizing that the slight moderation in demand isn’t significant but noteworthy. This trend is particularly evident at U.S. theme parks, where competition for tourist dollars has intensified, especially with the Summer Olympics drawing visitors away from Disneyland Paris.

Looking ahead, Disney forecasts continued pressures in the theme parks business for the fourth quarter, expecting operating income to fall by mid-single-digit percentage points. CEO Bob Iger expressed cautious optimism, “With our diversified portfolio of businesses, we are confident in our ability to navigate these challenges.” He highlighted ongoing investments in new attractions and experiences, such as the DisneylandForward initiative and the upcoming Disney Treasure cruise ship, as key strategies to bolster long-term growth.

Johnston also noted the importance of technology and data analytics in managing guest demand and optimizing operations. “Our recent investments enable us to better manage fluctuations in demand while prioritizing the guest experience,” he said. Despite the near-term challenges, Disney remains committed to enhancing its theme park offerings and maintaining its position as a leader in the global entertainment industry.

Box Office and Content Success

Disney’s box office and content divisions have been a beacon of success this quarter, significantly contributing to the company’s overall positive performance. The entertainment giant’s theatrical releases, particularly “Inside Out 2” and “Deadpool & Wolverine,” have driven substantial revenue growth. “Inside Out 2” has become the highest-grossing animated film of all time, selling nearly $1.6 billion in tickets globally since its release. This success has not only bolstered Disney’s financials but also reinforced its dominance in the animation sector.

“The success of ‘Inside Out 2’ is a testament to our commitment to delivering high-quality content that resonates with audiences globally,” said CEO Bob Iger. This animated sequel’s strong performance helped the company’s theatrical film division report an income of $254 million, a significant turnaround from the $112 million loss recorded a year earlier. Moreover, “Deadpool & Wolverine” generated the highest-ever box office gross for an R-rated movie, earning $824 million in global ticket sales to date.

The synergy between Disney’s film releases and its streaming platforms has also been noteworthy. “With the release of major titles like ‘Inside Out 2,’ we’ve seen a surge in Disney+ subscriptions and viewership,” added Iger. This interplay between theatrical releases and streaming engagement highlights Disney’s effective multi-platform content strategy. Johnston further elaborated, “Our powerful franchises not only drive box office success but also enhance engagement across our streaming and consumer products divisions.”

Disney’s strategic focus on fewer but higher-quality films is paying off, as evidenced by the success of its recent releases and the anticipation for upcoming titles. “We are committed to maintaining the high standards of our content, which is evident in our future lineup including ‘Moana 2,’ ‘Mufasa: The Lion King,’ and ‘Avatar 3,’” Iger said. This focus on quality over quantity aims to ensure sustained profitability and audience engagement across all of Disney’s entertainment platforms.

Strategic Focus and Technological Advancements

Disney’s strategic focus on leveraging technological advancements continues to play a pivotal role in driving its success across various segments. The integration of advanced technologies into their operations is helping the company optimize its services and enhance the consumer experience. “Our investment in technology is a cornerstone of our strategy,” said CFO Hugh Johnston. “It allows us to manage guest demand, improve cost efficiency, and provide unparalleled experiences to our customers.”

The introduction of new features and updates on Disney’s streaming platforms is a key example of this technological integration. Disney’s CEO Bob Iger highlighted the ongoing efforts to enhance their streaming services, stating, “We’ve started our password-sharing initiative and are making significant improvements to our recommendation engines. These technological enhancements are essential for increasing engagement and reducing churn.” The company’s focus on technology extends to their advertising model as well, with innovative solutions such as the Disney Streaming Entertainment (DSE) ad offering, which optimizes advertising opportunities across their family of streaming apps.

Moreover, Disney’s use of data analytics to monitor and respond to market dynamics is a critical aspect of their strategy. “Our recent investments in technology and data analytics enable us to better manage fluctuations in guest demand while also continuing to prioritize the guest experience,” Johnston added. This capability is particularly beneficial for Disney’s theme parks and cruise lines, allowing the company to adapt to changing consumer behaviors and preferences effectively.

Disney’s technological advancements are also evident in their sports broadcasting strategy. The company’s commitment to enhancing ESPN’s digital presence is aimed at maintaining its leadership in sports entertainment. “Our strategy at ESPN has long prioritized giving sports fans increased options for how they consume content,” Iger explained. The upcoming launch of an ESPN tile on Disney+ is part of this strategy, offering subscribers seamless access to sports content alongside other Disney offerings.

These technological investments and strategic initiatives are designed to ensure Disney remains at the forefront of the entertainment industry. As Iger succinctly put it, “Our focus on quality, technological innovation, and strategic partnerships positions us well for long-term growth and success.”

Financial Outlook and Market Response

Disney’s Q3 2024 financial performance has generated a complex market response. Despite achieving a notable profit milestone in its streaming segment and strong box office successes, the company faces pressures in its theme parks division, influencing its overall market position. The company’s quarterly profit surged to $2.62 billion from a $460 million loss a year earlier, with revenue rising 3.7% to $23.16 billion. However, Disney’s shares were down 2.9% following the earnings announcement, reflecting investor concerns about future challenges.

CFO Hugh Johnston provided insights into Disney’s strategic financial management. “Our consolidated financial performance was strong this quarter. In fiscal Q3, revenue grew 4%, total segment operating income grew 19%, and diluted earnings per share excluding certain items grew 35%,” Johnston noted. This performance underscores Disney’s ability to leverage its diverse portfolio and strategic initiatives effectively.

Looking ahead, Disney has raised its forecast for full-year growth in adjusted earnings per share to 30% from 25%, signaling confidence in its strategic direction. Johnston emphasized the company’s commitment to cost management and operational efficiency: “We continue to focus on driving incremental cost savings above and beyond our previously stated target as we deliver on our strategic priorities.”

CEO Bob Iger also expressed optimism about Disney’s future growth, highlighting the company’s strong pipeline of content and technological advancements. “With our complementary and balanced portfolio of businesses, we are confident in our ability to continue driving earnings growth,” Iger said. He pointed to upcoming releases such as “Moana 2,” “Mufasa: The Lion King,” and “Avatar 3” as key drivers of future revenue and profitability.

Disney’s Q3 2024 results demonstrate the company’s resilience and strategic agility in navigating a challenging market environment. While pressures in the theme parks segment persist, the success of the streaming division and robust content slate provide a strong foundation for future growth. As Johnston summarized, “Our progress in the quarter is a result of the strength of our portfolio, which best positions us to achieve even greater success over the long term.”