A union declared total victory in a mass strike by about 25,000 workers at 48 assembly plants in a Mexican border city, but the movement spawned a storm of wildcat walkouts Monday at other businesses.

 

The Industrial Workers and Laborers’ Union won 20 percent wage increases at all 48 “maquiladora” factories in Matamoros, across the border from Brownsville, Texas. It also won a one-time bonus of about 32,000 pesos, about $1,685 at current exchange rates.

 

Now workers at about a dozen non-union businesses as well as factories organized by other unions have started wildcat walkouts to demand the same increases, known colloquially as “20/32.”

 

The Tridonex auto parts company said in posts on its Facebook page Monday that pickets had prevented employees from entering its Matamoros plant and it cancelled some shifts. Video showed workers outside the plant chanting “20/32!”

The local maquiladora association, known as Index, said that all the plants in the association had signed labor contracts as of last week and that none of the businesses affected by the wildcat strikes are members.

 

Javier Guerrero, a Matamoros public relations specialist who has been active in strike support work, said the example set by the first round of strikes has spread to local businesses, many of which are not maquiladoras, which assemble products for export to the United States.

 

Supermarkets, bottlers and a milk company in Matamoros were reportedly hit by walkouts.

 

“In the past week, the strike wave has spread beyond the factories to supermarkets and other employers, with all the workers demanding ’20/32,'” said the AFL-CIO, which has sent a delegation to support the striking workers.

 

The mass strike erupted after President Andres Manuel Lopez Obrador decreed a doubling of the minimum wage in Mexico’s border zones, apparently unaware that some union contracts at the maquiladora plants are indexed to minimum wage increases.

 

While other Mexican cities don’t have the same contract clauses, for workers often making less than $1 an hour, the appeal of a pay raise and bonus has proved irresistible.

 

“Just as happened in Matamoros, it (the walkouts) spread to other companies and unions. It is very probable that it will spread to other cities, at least within the border area,” Guerrero said.

 

There has been a generalized upsurge in Mexico’s long-dormant labor movement since Lopez Obrador took office Dec. 1, something the president doesn’t appear to have planned on or encouraged. Lopez Obrador has simply promised to keep the government out of unions’ internal affairs and allow for free and fair union elections.

 

For a union movement kept in check for decades by pro-company union bosses allied with the former ruling Institutional Revolutionary Party, the promise of union democracy has been enough to spark a revival.

 

But there has already been a backlash.

 

“In the past week, as many as 2,000 strike leaders have been fired and blacklisted, despite legal prohibitions and non-reprisal agreements signed by the employers,” said the U.S. union delegation, which included representatives from the AFL-CIO, United Auto Workers and United Steelworkers.

 

“The Mexican and U.S. governments must both demand that these U.S. companies honor their agreements and stop firing and blacklisting these courageous workers,” said Texas AFL-CIO Secretary-Treasurer Montserrat Garibay.

 

Meanwhile, Lopez Obrador has been struggling with the most radical and intractable union in Mexico, the CNTE teachers’ union, which has blocked railroad lines in the western state of Michoacan on and off for the last month.

 

The teachers lifted most blockades last week but on Monday they briefly re-established a protest camp on a line operated by Kansas City Southern de Mexico.

 

KCSM reported that by late Monday, the camp had been removed and the line re-opened. But the company said that during 28 days of blockages, 414 trains were prevented from running and 3.5 million tons of freight was stalled.

 

The teachers initially started the blockages to demand back pay, but they kept blocking rail lines even after they were paid.
…

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A union declared total victory in a mass strike by about 25,000 workers at 48 assembly plants in a Mexican border city, but the movement spawned a storm of wildcat walkouts Monday at other businesses.

 

The Industrial Workers and Laborers’ Union won 20 percent wage increases at all 48 “maquiladora” factories in Matamoros, across the border from Brownsville, Texas. It also won a one-time bonus of about 32,000 pesos, about $1,685 at current exchange rates.

 

Now workers at about a dozen non-union businesses as well as factories organized by other unions have started wildcat walkouts to demand the same increases, known colloquially as “20/32.”

 

The Tridonex auto parts company said in posts on its Facebook page Monday that pickets had prevented employees from entering its Matamoros plant and it cancelled some shifts. Video showed workers outside the plant chanting “20/32!”

The local maquiladora association, known as Index, said that all the plants in the association had signed labor contracts as of last week and that none of the businesses affected by the wildcat strikes are members.

 

Javier Guerrero, a Matamoros public relations specialist who has been active in strike support work, said the example set by the first round of strikes has spread to local businesses, many of which are not maquiladoras, which assemble products for export to the United States.

 

Supermarkets, bottlers and a milk company in Matamoros were reportedly hit by walkouts.

 

“In the past week, the strike wave has spread beyond the factories to supermarkets and other employers, with all the workers demanding ’20/32,'” said the AFL-CIO, which has sent a delegation to support the striking workers.

 

The mass strike erupted after President Andres Manuel Lopez Obrador decreed a doubling of the minimum wage in Mexico’s border zones, apparently unaware that some union contracts at the maquiladora plants are indexed to minimum wage increases.

 

While other Mexican cities don’t have the same contract clauses, for workers often making less than $1 an hour, the appeal of a pay raise and bonus has proved irresistible.

 

“Just as happened in Matamoros, it (the walkouts) spread to other companies and unions. It is very probable that it will spread to other cities, at least within the border area,” Guerrero said.

 

There has been a generalized upsurge in Mexico’s long-dormant labor movement since Lopez Obrador took office Dec. 1, something the president doesn’t appear to have planned on or encouraged. Lopez Obrador has simply promised to keep the government out of unions’ internal affairs and allow for free and fair union elections.

 

For a union movement kept in check for decades by pro-company union bosses allied with the former ruling Institutional Revolutionary Party, the promise of union democracy has been enough to spark a revival.

 

But there has already been a backlash.

 

“In the past week, as many as 2,000 strike leaders have been fired and blacklisted, despite legal prohibitions and non-reprisal agreements signed by the employers,” said the U.S. union delegation, which included representatives from the AFL-CIO, United Auto Workers and United Steelworkers.

 

“The Mexican and U.S. governments must both demand that these U.S. companies honor their agreements and stop firing and blacklisting these courageous workers,” said Texas AFL-CIO Secretary-Treasurer Montserrat Garibay.

 

Meanwhile, Lopez Obrador has been struggling with the most radical and intractable union in Mexico, the CNTE teachers’ union, which has blocked railroad lines in the western state of Michoacan on and off for the last month.

 

The teachers lifted most blockades last week but on Monday they briefly re-established a protest camp on a line operated by Kansas City Southern de Mexico.

 

KCSM reported that by late Monday, the camp had been removed and the line re-opened. But the company said that during 28 days of blockages, 414 trains were prevented from running and 3.5 million tons of freight was stalled.

 

The teachers initially started the blockages to demand back pay, but they kept blocking rail lines even after they were paid.
…

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Vale SA, the world’s largest iron ore miner, knew last year that the dam in Brazil that collapsed in January and killed at least 165 people had a heightened risk of rupturing, according to an internal document seen by Reuters on Monday.

The report, dated Oct. 3, 2018, shows that Vale classified Dam 1 at the Córrego do Feijão mine in Brumadinho as being two times more likely to fail than the maximum level of risk tolerated under the company’s own dam safety policy.

Vale did not immediately respond to a request for comment.

It has previously cited an independent audit last year declaring the dam safe and said that equipment showed the structure was stable just weeks before the collapse.

First evidence of concern

The previously unreported document is the first evidence that Vale itself was concerned about the safety of the dam. It raises questions as to why the audit around the same time guaranteed the dam’s stability and why the miner did not take precautions, such as moving a company canteen that was just downhill from the structure.

U.S.-listed shares of Vale extended losses following the Reuters story, dropping as much as 2.6 percent to $11.10.

The company has lost a quarter of its market capitalization — or nearly $19 billion — since the Jan. 25 dam collapse, Brazil’s most deadly mining accident.

The disaster in the mineral-rich state of Minas Gerais was the second major collapse of a mining dam in the region in about three years.

‘Attention zone’

Entitled “Geotechnical Risk Management Results,” Vale’s internal October report placed the Brumadinho dam within an “attention zone,” saying that “all prevention and mitigation controls” should be applied.

A failure could cost the company $1.5 billion and had the potential to kill more than a hundred people, the report said.

The dam was marked for decommissioning.

Nine other dams in Brazil, out of 57 that were studied, were also placed in the “attention zone,” according to the report.

A separate Vale report dated Nov. 15, 2017, also seen by Reuters, states that any structure with an annual chance of failure above 1 in 10,000 should be brought to the attention of the chief executive and the board.

The dam’s annual chance of collapse was registered as 1 in 5,000, or twice the tolerable “maximum level of individual risk,” according to the report.

“That’s not good in my book, especially if you consider that these are meant to be long-term structures,” said David Chambers, a geophysicist at the Center for Science in Public Participation and a specialist in tailings dams.

Reuters was unable to confirm whether the board or CEO Fabio Schwartzman were made aware of the risk associated with the dam.

Vale has consistently said the collapsed dam was declared sound by an independent auditor in September.

The audit by Germany-based TÜV SÜD, which was seen by Reuters, said the dam adhered to the minimum legal requirements for stability but it raised a number of concerns, particularly about the dam’s drainage and monitoring systems.

The auditor made 17 recommendations to improve the dam’s safety.

Vale said the recommendations were routine and that the company attended to them all.

Its internal report identified static liquefaction and internal erosion as the most likely causes of a potential failure at the dam in Brumadinho.

‘Liquefaction’ to blame?

It is still not known what was behind the collapse, but a state environmental official told Reuters this month that all evidence pointed to liquefaction.

Liquefaction is a process whereby a solid material such as sand loses strength and stiffness and behaves more like a liquid. It was the cause of the 2015 dam collapse, at a nearby mine co-owned by Vale, which resulted in Brazil’s worst-ever environmental disaster.

“We used to say these kinds of mining incidents were acts of God, but now … we consider them failures in engineering,” said Dermot Ross-Brown, a mining industry engineer who teaches at the Colorado School of Mines.

Vale has said it will invest some $400 million from 2020 to reduce its reliance on tailings dams, which store muddy detritus from mining.
…

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Vale SA, the world’s largest iron ore miner, knew last year that the dam in Brazil that collapsed in January and killed at least 165 people had a heightened risk of rupturing, according to an internal document seen by Reuters on Monday.

The report, dated Oct. 3, 2018, shows that Vale classified Dam 1 at the Córrego do Feijão mine in Brumadinho as being two times more likely to fail than the maximum level of risk tolerated under the company’s own dam safety policy.

Vale did not immediately respond to a request for comment.

It has previously cited an independent audit last year declaring the dam safe and said that equipment showed the structure was stable just weeks before the collapse.

First evidence of concern

The previously unreported document is the first evidence that Vale itself was concerned about the safety of the dam. It raises questions as to why the audit around the same time guaranteed the dam’s stability and why the miner did not take precautions, such as moving a company canteen that was just downhill from the structure.

U.S.-listed shares of Vale extended losses following the Reuters story, dropping as much as 2.6 percent to $11.10.

The company has lost a quarter of its market capitalization — or nearly $19 billion — since the Jan. 25 dam collapse, Brazil’s most deadly mining accident.

The disaster in the mineral-rich state of Minas Gerais was the second major collapse of a mining dam in the region in about three years.

‘Attention zone’

Entitled “Geotechnical Risk Management Results,” Vale’s internal October report placed the Brumadinho dam within an “attention zone,” saying that “all prevention and mitigation controls” should be applied.

A failure could cost the company $1.5 billion and had the potential to kill more than a hundred people, the report said.

The dam was marked for decommissioning.

Nine other dams in Brazil, out of 57 that were studied, were also placed in the “attention zone,” according to the report.

A separate Vale report dated Nov. 15, 2017, also seen by Reuters, states that any structure with an annual chance of failure above 1 in 10,000 should be brought to the attention of the chief executive and the board.

The dam’s annual chance of collapse was registered as 1 in 5,000, or twice the tolerable “maximum level of individual risk,” according to the report.

“That’s not good in my book, especially if you consider that these are meant to be long-term structures,” said David Chambers, a geophysicist at the Center for Science in Public Participation and a specialist in tailings dams.

Reuters was unable to confirm whether the board or CEO Fabio Schwartzman were made aware of the risk associated with the dam.

Vale has consistently said the collapsed dam was declared sound by an independent auditor in September.

The audit by Germany-based TÜV SÜD, which was seen by Reuters, said the dam adhered to the minimum legal requirements for stability but it raised a number of concerns, particularly about the dam’s drainage and monitoring systems.

The auditor made 17 recommendations to improve the dam’s safety.

Vale said the recommendations were routine and that the company attended to them all.

Its internal report identified static liquefaction and internal erosion as the most likely causes of a potential failure at the dam in Brumadinho.

‘Liquefaction’ to blame?

It is still not known what was behind the collapse, but a state environmental official told Reuters this month that all evidence pointed to liquefaction.

Liquefaction is a process whereby a solid material such as sand loses strength and stiffness and behaves more like a liquid. It was the cause of the 2015 dam collapse, at a nearby mine co-owned by Vale, which resulted in Brazil’s worst-ever environmental disaster.

“We used to say these kinds of mining incidents were acts of God, but now … we consider them failures in engineering,” said Dermot Ross-Brown, a mining industry engineer who teaches at the Colorado School of Mines.

Vale has said it will invest some $400 million from 2020 to reduce its reliance on tailings dams, which store muddy detritus from mining.
…

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U.S. Secretary of State Mike Pompeo is warning Hungary the presence of Chinese telecommunication manufacturer Huawei in the European country is complicating Budapest’s partnership with Washington. 

The chief American diplomat Monday arrived in Budapest on Monday, the first leg of his European trip. Huawei has established Hungary as a European hub, where it can develop its fifth-generation mobile networks.

“If that equipment is co-located in places where we have important American systems, it makes it more difficult for us to partner alongside them. We want to make sure we identify [to] them the opportunities and the risks associated with using that equipment,” said Pompeo.

While noting sovereign nations such as Hungary will “make their own decisions,” Pompeo said it’s imperative the United States shares potential risks from Huawei with its NATO allies.

American officials are increasingly troubled by Huawei’s expansion in Europe, especially in NATO member states where Washington believes the Chinese telecom manufacturer poses significant information security threats.

At a joint press conference with Hungarian Foreign minister Peter Szijjarto, Pompeo said he has raised with Szijjarto “the dangers of allowing China to gain a bridgehead in Hungary.”

But the U.S. pressure campaign against Huawei faces challenges. Hungary has said it has no plans to reconsider the decision to award the 5G networks contract to Huawei. 

Many in China believe that the U.S. government concerns over Huawei’s security are at least in part aimed at helping American companies better compete against foreign rivals. But U.S. officials reject that notion.

“That sounds like a lot of mirror imaging to me,” said U.S. Assistant Secretary of State for International Security and Nonproliferation Christopher Ford in an interview with VOA, noting “the Chinese government has actually been extraordinarily grand in its ambitions to do just that sort of thing with Chinese companies.”

Ford pointed to numerous public reports in recent years that have blamed Chinese government-backed hackers with cyber campaigns stealing corporate secrets and financial data. 

“Cyber-facilitated theft of intellectual property, for example, has become notorious around the world. But the Chinese government has been doing that very systematically in order to advantage its own national champion industries in particular sectors,” Ford added.

Social media threats?

Weary of data collection and Chinese technology transfer for military purposes, the U.S. government is considering tighter restrictions on the use of social media apps that have geolocation features within diplomatic and military facilities.

While the State Department does not expressly prohibit the use of commercial geolocation applications on smartphones and other personal electronic devices by employees serving internationally, measures are taken to address the potential security risks.

The State Department has issued guidance requiring each post to develop a policy regarding the restrictions placed on using personal electronic devices.

“We obviously need to continue to be mindful of that, and to update and improve our understanding of best practices,” said Assistant Secretary of State Ford.

Last year, the Pentagon started prohibiting personnel from using geolocation features on electronic devices while in locations designated as operational areas.

Those restrictions could impact popular social media applications like TikTok, a Chinese-made app for sharing short videos that is popular among young adults.

All social media companies gather data on their users, but experts warn that Chinese companies in particular pose unique challenges because the Beijing government has absolute authority to request private user data. 

“The user in Western countries might not be aware that in China, the government has a far broader reach compared to over here, so they can request data out from a private company on national security grounds,” Claudia Biancotti, visiting fellow at the Peterson Institute for International Economics (PIIE), told VOA in a recent interview.

Biancotti added in China, “they don’t really have independent courts to oversee the process.”

“If this information is sent to China, it can be easily accessed by the government and leveraged, say, to make Beijing’s surveillance software better at recognizing Western faces, or at extracting intelligence on Western military activities,” warned Biancotti in a recent report.

TikTok, launched as Douyin in China in 2016, is owned by Chinese internet technology company ByteDance who later acquired Musical.ly, a popular lip-sync app among American teenagers. ByteDance merged Musical.ly with TikTok in 2018 as a means of entering the U.S. market. 

Last October, TikTok surpassed Facebook, Instagram, YouTube and Snapchat in monthly installations. 

TikTok recently updated its privacy policy for U.S. residents, removing all references about storing data in China. 

Last August, TikTok stated in the privacy policy: “We will also share your information with any member or affiliate of our group, in China,” but the latest update in January of 2019 deleted the word “China.”

The company wrote an email to VOA’s Mandarin service that they regularly update their privacy policies while noting that TikTok does not operate in China.

TikTok’s current privacy policy stated it automatically collects technically and behavioral information from users, including IP address, location-related data or other unique device identifiers. 

“We may also collect Global Positioning System (GPS) data and mobile device location information.” But users can switch off location information functionality on their mobile device if they do not wish to share such data.

“We will share your information with law enforcement agencies, public authorities or other organizations if legally required to do so,” TikTok stated. 

VOA’s Mandarin Service, Jeff Seldin and Mo Yu contributed to this report.
…

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U.S. Secretary of State Mike Pompeo is warning Hungary the presence of Chinese telecommunication manufacturer Huawei in the European country is complicating Budapest’s partnership with Washington. 

The chief American diplomat Monday arrived in Budapest on Monday, the first leg of his European trip. Huawei has established Hungary as a European hub, where it can develop its fifth-generation mobile networks.

“If that equipment is co-located in places where we have important American systems, it makes it more difficult for us to partner alongside them. We want to make sure we identify [to] them the opportunities and the risks associated with using that equipment,” said Pompeo.

While noting sovereign nations such as Hungary will “make their own decisions,” Pompeo said it’s imperative the United States shares potential risks from Huawei with its NATO allies.

American officials are increasingly troubled by Huawei’s expansion in Europe, especially in NATO member states where Washington believes the Chinese telecom manufacturer poses significant information security threats.

At a joint press conference with Hungarian Foreign minister Peter Szijjarto, Pompeo said he has raised with Szijjarto “the dangers of allowing China to gain a bridgehead in Hungary.”

But the U.S. pressure campaign against Huawei faces challenges. Hungary has said it has no plans to reconsider the decision to award the 5G networks contract to Huawei. 

Many in China believe that the U.S. government concerns over Huawei’s security are at least in part aimed at helping American companies better compete against foreign rivals. But U.S. officials reject that notion.

“That sounds like a lot of mirror imaging to me,” said U.S. Assistant Secretary of State for International Security and Nonproliferation Christopher Ford in an interview with VOA, noting “the Chinese government has actually been extraordinarily grand in its ambitions to do just that sort of thing with Chinese companies.”

Ford pointed to numerous public reports in recent years that have blamed Chinese government-backed hackers with cyber campaigns stealing corporate secrets and financial data. 

“Cyber-facilitated theft of intellectual property, for example, has become notorious around the world. But the Chinese government has been doing that very systematically in order to advantage its own national champion industries in particular sectors,” Ford added.

Social media threats?

Weary of data collection and Chinese technology transfer for military purposes, the U.S. government is considering tighter restrictions on the use of social media apps that have geolocation features within diplomatic and military facilities.

While the State Department does not expressly prohibit the use of commercial geolocation applications on smartphones and other personal electronic devices by employees serving internationally, measures are taken to address the potential security risks.

The State Department has issued guidance requiring each post to develop a policy regarding the restrictions placed on using personal electronic devices.

“We obviously need to continue to be mindful of that, and to update and improve our understanding of best practices,” said Assistant Secretary of State Ford.

Last year, the Pentagon started prohibiting personnel from using geolocation features on electronic devices while in locations designated as operational areas.

Those restrictions could impact popular social media applications like TikTok, a Chinese-made app for sharing short videos that is popular among young adults.

All social media companies gather data on their users, but experts warn that Chinese companies in particular pose unique challenges because the Beijing government has absolute authority to request private user data. 

“The user in Western countries might not be aware that in China, the government has a far broader reach compared to over here, so they can request data out from a private company on national security grounds,” Claudia Biancotti, visiting fellow at the Peterson Institute for International Economics (PIIE), told VOA in a recent interview.

Biancotti added in China, “they don’t really have independent courts to oversee the process.”

“If this information is sent to China, it can be easily accessed by the government and leveraged, say, to make Beijing’s surveillance software better at recognizing Western faces, or at extracting intelligence on Western military activities,” warned Biancotti in a recent report.

TikTok, launched as Douyin in China in 2016, is owned by Chinese internet technology company ByteDance who later acquired Musical.ly, a popular lip-sync app among American teenagers. ByteDance merged Musical.ly with TikTok in 2018 as a means of entering the U.S. market. 

Last October, TikTok surpassed Facebook, Instagram, YouTube and Snapchat in monthly installations. 

TikTok recently updated its privacy policy for U.S. residents, removing all references about storing data in China. 

Last August, TikTok stated in the privacy policy: “We will also share your information with any member or affiliate of our group, in China,” but the latest update in January of 2019 deleted the word “China.”

The company wrote an email to VOA’s Mandarin service that they regularly update their privacy policies while noting that TikTok does not operate in China.

TikTok’s current privacy policy stated it automatically collects technically and behavioral information from users, including IP address, location-related data or other unique device identifiers. 

“We may also collect Global Positioning System (GPS) data and mobile device location information.” But users can switch off location information functionality on their mobile device if they do not wish to share such data.

“We will share your information with law enforcement agencies, public authorities or other organizations if legally required to do so,” TikTok stated. 

VOA’s Mandarin Service, Jeff Seldin and Mo Yu contributed to this report.
…

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Battling a sharp rise in food costs, Turkish authorities opened their own markets on Monday to sell cheap vegetables directly to shoppers, cutting out retailers who the government has accused of jacking up prices.

Crowds queued outside municipality tents to buy tomatoes, onions and peppers in Istanbul’s Bayrampasa district, waiting for an hour for items selling at half the regular shop prices.

The move to set up state markets follows a 31 percent year-on-year surge in food prices in January and precedes local elections next month in which President Tayyip Erdogan’s AK Party faces a tough challenge to maintain support.

Traders blamed storms in southern Turkey’s farming region for food price inflation, as well as rising costs of labor and transport. Authorities called it “food terror” and said they would punish anyone trying to keep prices artificially high.

“This was a game. They started manipulating prices, they tried to make prices skyrocket,” President Tayyip Erdogan said in a campaign speech on Monday.

“This was an attempt to terrorize (society),” Erdogan said.

Under the government initiative, municipalities are selling vegetables at around 50 percent of prices recorded by the Turkish Statistical Institute in January. A maximum of three kilos of goods per person is allowed.

The move will be extended to rice and pulses such as lentils, as well as cleaning products, Erdogan said.

The project is currently taking place only in Istanbul, where around 50 sites are selling the cut-price goods, and in the capital Ankara. That means it is unlikely to have a direct impact on national inflation figures, but could mitigate the price rises for residents of Turkey’s two largest cities.

Barely managing

Mustafa Dilli, 55, said he was struggling to make ends meet and hoped shops would follow suit by lowering their prices. “I think I can only shop here from now on,” he said. “We barely make it through to the end of the month.”

Several shoppers in Bayrampasa said they hoped the sales would carry on after next month’s vote. “I am curious whether this will continue after the elections,” 43-year-old housewife Nebahat Deniz said as she bought spinach and eggplants.

Agriculture Minister Bekir Pakdemirli, visiting a tent set up by the Ankara municipality, said the project would continue as long as it is needed, and could become permanent.

Last week, authorities inspected fresh produce wholesalers and imposed fines totaling 2 million lira ($380,000) on 88 firms for setting unreasonably high prices, according to the Trade Ministry.

At an Istanbul food market in a covered parking lot, traders complained that they could not compete with municipality stalls they said were subsidized by taxpayers and had been set up to win votes.

Standing behind an array of peppers, tomatoes and fresh greens, one trader said he was being hit by rising costs across the board.

“Prices in the food market are affected by the price of plastic bags, employee wages, stall fees, taxes, fuel prices.

All of them are increasing the cost of the goods,” said the trader, who only gave his first name, Yusuf.

“The government does not have these costs,” Yusuf said. “All of their costs are paid from the money out of our pockets.”

Another vendor, Erkan, said municipality sales were aimed purely at maximizing votes. “After the election, municipality sales will halt,” he said.

Erkan said the profit margin at his own stall, which supports three or four families, was very tight. “If we buy for 8 liras per kilo from the wholesaler we sell with little profit. We sell the goods for 9 liras for example,” Erkan said.
…

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Battling a sharp rise in food costs, Turkish authorities opened their own markets on Monday to sell cheap vegetables directly to shoppers, cutting out retailers who the government has accused of jacking up prices.

Crowds queued outside municipality tents to buy tomatoes, onions and peppers in Istanbul’s Bayrampasa district, waiting for an hour for items selling at half the regular shop prices.

The move to set up state markets follows a 31 percent year-on-year surge in food prices in January and precedes local elections next month in which President Tayyip Erdogan’s AK Party faces a tough challenge to maintain support.

Traders blamed storms in southern Turkey’s farming region for food price inflation, as well as rising costs of labor and transport. Authorities called it “food terror” and said they would punish anyone trying to keep prices artificially high.

“This was a game. They started manipulating prices, they tried to make prices skyrocket,” President Tayyip Erdogan said in a campaign speech on Monday.

“This was an attempt to terrorize (society),” Erdogan said.

Under the government initiative, municipalities are selling vegetables at around 50 percent of prices recorded by the Turkish Statistical Institute in January. A maximum of three kilos of goods per person is allowed.

The move will be extended to rice and pulses such as lentils, as well as cleaning products, Erdogan said.

The project is currently taking place only in Istanbul, where around 50 sites are selling the cut-price goods, and in the capital Ankara. That means it is unlikely to have a direct impact on national inflation figures, but could mitigate the price rises for residents of Turkey’s two largest cities.

Barely managing

Mustafa Dilli, 55, said he was struggling to make ends meet and hoped shops would follow suit by lowering their prices. “I think I can only shop here from now on,” he said. “We barely make it through to the end of the month.”

Several shoppers in Bayrampasa said they hoped the sales would carry on after next month’s vote. “I am curious whether this will continue after the elections,” 43-year-old housewife Nebahat Deniz said as she bought spinach and eggplants.

Agriculture Minister Bekir Pakdemirli, visiting a tent set up by the Ankara municipality, said the project would continue as long as it is needed, and could become permanent.

Last week, authorities inspected fresh produce wholesalers and imposed fines totaling 2 million lira ($380,000) on 88 firms for setting unreasonably high prices, according to the Trade Ministry.

At an Istanbul food market in a covered parking lot, traders complained that they could not compete with municipality stalls they said were subsidized by taxpayers and had been set up to win votes.

Standing behind an array of peppers, tomatoes and fresh greens, one trader said he was being hit by rising costs across the board.

“Prices in the food market are affected by the price of plastic bags, employee wages, stall fees, taxes, fuel prices.

All of them are increasing the cost of the goods,” said the trader, who only gave his first name, Yusuf.

“The government does not have these costs,” Yusuf said. “All of their costs are paid from the money out of our pockets.”

Another vendor, Erkan, said municipality sales were aimed purely at maximizing votes. “After the election, municipality sales will halt,” he said.

Erkan said the profit margin at his own stall, which supports three or four families, was very tight. “If we buy for 8 liras per kilo from the wholesaler we sell with little profit. We sell the goods for 9 liras for example,” Erkan said.
…

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U.S. Steel Corp. will restart construction on an idled manufacturing facility in Alabama, and it gave some of the credit to President Donald Trump’s trade policies in an announcement Monday.

Trump’s “strong trade actions” are partly responsible for the resumption of work on an advanced plant near Birmingham, the Pittsburgh-based company said in a statement. The administration’s tariffs have raised prices on imported steel and aluminum.

The manufacturer also cited improving market conditions, union support and government incentives for the decision.

Work will resume immediately, the company said, and the facility will have an annual capacity of 1.6 million tons (1.5 million metric tons).

U.S. Steel said it also will update other equipment and plans to spend about $215 million, adding about 150 full-time workers. The furnace is expected to begin producing steel in late 2020.

The 16,000-member United Steelworkers praised the decision to resume work, which followed an agreement with the union reached last fall.

“This decision paves the way for a solid future in continuing to make steel in Alabama and the Birmingham region,” Leo W. Gerard, the president of the international union, said in a statement.

U.S. Steel shut down its decades-old blast furnace at Fairfield Works in 2015, idling about 1,100 employees, and said it would replace the operation with an electric furnace.

The company then blamed conditions in the steel, oil and gas industries as it suspended work in December 2015 on an electric arc furnace at its mill in Fairfield, located just west of Birmingham. The project stalled until the announcement Monday.

Trump imposed tariffs of 25 percent on steel imports and 10 percent on imported aluminum on June 1, 2018. The move was to protect U.S. national security interests, he said, but other countries said the taxes break global trade rules, and some have imposed tariffs of their own.

 
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U.S. Steel Corp. will restart construction on an idled manufacturing facility in Alabama, and it gave some of the credit to President Donald Trump’s trade policies in an announcement Monday.

Trump’s “strong trade actions” are partly responsible for the resumption of work on an advanced plant near Birmingham, the Pittsburgh-based company said in a statement. The administration’s tariffs have raised prices on imported steel and aluminum.

The manufacturer also cited improving market conditions, union support and government incentives for the decision.

Work will resume immediately, the company said, and the facility will have an annual capacity of 1.6 million tons (1.5 million metric tons).

U.S. Steel said it also will update other equipment and plans to spend about $215 million, adding about 150 full-time workers. The furnace is expected to begin producing steel in late 2020.

The 16,000-member United Steelworkers praised the decision to resume work, which followed an agreement with the union reached last fall.

“This decision paves the way for a solid future in continuing to make steel in Alabama and the Birmingham region,” Leo W. Gerard, the president of the international union, said in a statement.

U.S. Steel shut down its decades-old blast furnace at Fairfield Works in 2015, idling about 1,100 employees, and said it would replace the operation with an electric furnace.

The company then blamed conditions in the steel, oil and gas industries as it suspended work in December 2015 on an electric arc furnace at its mill in Fairfield, located just west of Birmingham. The project stalled until the announcement Monday.

Trump imposed tariffs of 25 percent on steel imports and 10 percent on imported aluminum on June 1, 2018. The move was to protect U.S. national security interests, he said, but other countries said the taxes break global trade rules, and some have imposed tariffs of their own.

 
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China struck an upbeat note on Monday as trade talks resumed with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved Beijing-Washington ties.

White House senior counselor Kellyanne Conway on Monday also expressed confidence in a possible deal. Asked if the two countries were getting close to a trade agreement, she told Fox News in an interview, “It looks that way, absolutely.”

The United States is expected to keep pressing China on longstanding demands that it reform how it treats American companies’ intellectual property in order to seal a trade deal that could prevent tariffs from rising on Chinese imports.

The latest talks kick off with working level discussions on Monday before high-level discussions later in the week.

Negotiations in Washington last month ended without a deal and with the top U.S. negotiator declaring work was needed.

“We, of course, hope, and the people of the world want to see, a good result,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a news briefing in Beijing.

The two sides are trying to hammer out a deal before the March 1 deadline when U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

Trump said last week he did not plan to meet with Chinese President Xi Jinping before that deadline, dampening hopes that a trade pact could be reached quickly. But the White House’s Conway said a meeting was still possible soon.

Escalating tensions between the United States and China have cost both countries billions of dollars and disrupted global trade and business flows, roiling financial markets.

The same day the latest talks began, two U.S. warships sailed near islands claimed by China in the disputed South China Sea, a U.S. official told Reuters.

Asked if the ships’ passage would impact trade talks, Hua said that “a series of U.S. tricks” showed what Washington was thinking. But Hua added that China believed resolving trade frictions through dialog was in the interests of both countries’ people, and of global economic growth.

China claims a large part of the South China Sea, and has built artificial islands and air bases there, prompting concern around the region and in Washington.
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Since November, tens of thousands of angry French have taken to the streets, first against a fuel tax hike and now with myriad demands including better pay, fewer taxes, greater equality and citizens’ participation in governing. More than 50,000 protesters were on the streets Saturday, February 9. How and when the protests will end is still in question. From Paris, Lisa Bryant reports for VOA.
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International Monetary Fund chief Christine Lagarde on Sunday met Pakistani Prime Minister Imran Khan and assured him that IMF stands ready to support his country.

The meeting took place on the sidelines of the World Government Summit in Dubai, hosted by the United Arab Emirates, both IMF and prime minister Imran Khan’s office said.

“I reiterated that the IMF stands ready to support Pakistan,” Lagarde said in a statement following meeting Khan.

A team from the International Monetary Fund visited Pakistan in November to discuss a possible bailout with officials, though the talks ended without agreement, but since then the government official said talks were still ongoing on a possible bailout.

Pakistan — which has gone to the IMF repeatedly since the late 1980s — is facing a balance of payments crisis.

“I also highlighted that decisive policies and a strong package of economic reforms would enable Pakistan to restore the resilience of its economy and lay the foundations for stronger and more inclusive growth,” said Lagarde, calling the meeting “good and constructive”.

Pakistan — a regular borrower from the IMF since the 1980s — last received an IMF bailout in 2013 to the tune of $6.6 billion.

Forecasts by the IMF and World Bank suggest the Pakistani economy is likely to grow between 4.0 and 4.5 percent for the fiscal year ending June 2019, compared to 5.8 percent growth in the last fiscal year.

Addressing the World Government Summit, prime minister Khan said his government has started a reform program and was trying to improve its economic policies.

“Reforms are painful but it is essential if we have to get out of our current problems,” Khan told the summit and said his government was making efforts to cut down the fiscal and current account deficit.

Khan hoped that the time has come that “Pakistan will take off”.

Khan has launched a highly publicized austerity drive since being sworn in, including auctioning off government-owned luxury vehicles and buffaloes, in addition to seeking loans from “friendly countries” and making overtures to the IMF.

The United Arab Emirates, Pakistan’s largest trading partner in the Middle East and a major investment sources, recently offered $3 billion to support Pakistan’s battered economy.

Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan’s visit to the kingdom in October.

It has also received billions of dollars in Chinese loans to finance ambitious infrastructure projects.

Despite the pledges, the ministry of finance said Pakistan would still seek broader IMF support for the government’s long-term economic planning.

In January, Pakistan launched a new investment certificate for overseas citizens, aimed at easing the country’s balance of payments crisis.

 

 

 
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International Monetary Fund chief Christine Lagarde on Sunday met Pakistani Prime Minister Imran Khan and assured him that IMF stands ready to support his country.

The meeting took place on the sidelines of the World Government Summit in Dubai, hosted by the United Arab Emirates, both IMF and prime minister Imran Khan’s office said.

“I reiterated that the IMF stands ready to support Pakistan,” Lagarde said in a statement following meeting Khan.

A team from the International Monetary Fund visited Pakistan in November to discuss a possible bailout with officials, though the talks ended without agreement, but since then the government official said talks were still ongoing on a possible bailout.

Pakistan — which has gone to the IMF repeatedly since the late 1980s — is facing a balance of payments crisis.

“I also highlighted that decisive policies and a strong package of economic reforms would enable Pakistan to restore the resilience of its economy and lay the foundations for stronger and more inclusive growth,” said Lagarde, calling the meeting “good and constructive”.

Pakistan — a regular borrower from the IMF since the 1980s — last received an IMF bailout in 2013 to the tune of $6.6 billion.

Forecasts by the IMF and World Bank suggest the Pakistani economy is likely to grow between 4.0 and 4.5 percent for the fiscal year ending June 2019, compared to 5.8 percent growth in the last fiscal year.

Addressing the World Government Summit, prime minister Khan said his government has started a reform program and was trying to improve its economic policies.

“Reforms are painful but it is essential if we have to get out of our current problems,” Khan told the summit and said his government was making efforts to cut down the fiscal and current account deficit.

Khan hoped that the time has come that “Pakistan will take off”.

Khan has launched a highly publicized austerity drive since being sworn in, including auctioning off government-owned luxury vehicles and buffaloes, in addition to seeking loans from “friendly countries” and making overtures to the IMF.

The United Arab Emirates, Pakistan’s largest trading partner in the Middle East and a major investment sources, recently offered $3 billion to support Pakistan’s battered economy.

Islamabad also secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Khan’s visit to the kingdom in October.

It has also received billions of dollars in Chinese loans to finance ambitious infrastructure projects.

Despite the pledges, the ministry of finance said Pakistan would still seek broader IMF support for the government’s long-term economic planning.

In January, Pakistan launched a new investment certificate for overseas citizens, aimed at easing the country’s balance of payments crisis.

 

 

 
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A joint study by the International Labor Organization and U.N. Children’s Fund finds the vast majority of the world’s children lack effective social protection coverage. It says this dooms them to a life of extreme poverty, with negative implications for society.

The study finds only one third of children between zero and 14 years of age have any social protection. That means two-thirds, or 1.3 billion children live without a social safety net.

International Labor Organization Social Protection Department Director Isabel Ortiz says just slightly more than one percent of GDP is allocated to social protection for children. She says this huge under-investment gap needs to be covered.

“And, of course, the numbers worsen as we go by region. In Africa, for instance, children represent 40 percent of the African population overall. However, only 0.6 percent is actually invested in social protection for children,” she said.

The report finds children fare best in Europe and Central Asia where 87 percent have social protection coverage, followed by children in the Americas with 66 percent. Asia and Africa have the worst records. The report says no data is available on the Arab States.

The report highlights the impact extreme poverty has upon the lives of children and the societies in which they live. Chief of the U.N. Children’s Fund Child Poverty and Social Protection Unit, David Stewart, says 385 million children are living on under $1.90 a day.

“I think one of the most striking statistics, which emerges is that children are two times as likely to be living in poverty as adults,” he said. “Now, for children it is particularly concerning because poverty can have a lifetime implication for children. You do not have a second chance at nutrition, at health care, and education.”

Stewart says this has negative implications for children, and for societies and economies as well.

The ILO and UNICEF recommend the rapid expansion of social protection for children including the consideration of universal cash grants to children. Authors of the report say evidence clearly shows cash transfers play a vital role in breaking the vicious cycle of poverty and vulnerability.

 

 
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A joint study by the International Labor Organization and U.N. Children’s Fund finds the vast majority of the world’s children lack effective social protection coverage. It says this dooms them to a life of extreme poverty, with negative implications for society.

The study finds only one third of children between zero and 14 years of age have any social protection. That means two-thirds, or 1.3 billion children live without a social safety net.

International Labor Organization Social Protection Department Director Isabel Ortiz says just slightly more than one percent of GDP is allocated to social protection for children. She says this huge under-investment gap needs to be covered.

“And, of course, the numbers worsen as we go by region. In Africa, for instance, children represent 40 percent of the African population overall. However, only 0.6 percent is actually invested in social protection for children,” she said.

The report finds children fare best in Europe and Central Asia where 87 percent have social protection coverage, followed by children in the Americas with 66 percent. Asia and Africa have the worst records. The report says no data is available on the Arab States.

The report highlights the impact extreme poverty has upon the lives of children and the societies in which they live. Chief of the U.N. Children’s Fund Child Poverty and Social Protection Unit, David Stewart, says 385 million children are living on under $1.90 a day.

“I think one of the most striking statistics, which emerges is that children are two times as likely to be living in poverty as adults,” he said. “Now, for children it is particularly concerning because poverty can have a lifetime implication for children. You do not have a second chance at nutrition, at health care, and education.”

Stewart says this has negative implications for children, and for societies and economies as well.

The ILO and UNICEF recommend the rapid expansion of social protection for children including the consideration of universal cash grants to children. Authors of the report say evidence clearly shows cash transfers play a vital role in breaking the vicious cycle of poverty and vulnerability.

 

 
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A portion of TransCanada Corp’s Keystone oil pipeline remained shut on Thursday for investigation of a possible leak on its right-of-way near St. Louis, Missouri, a company spokesman said.

TransCanada shut the pipeline on Wednesday between Steele City, Nebraska and Patoka, Illinois and sent crews to assess the situation, spokesman Terry Cunha said in an email.

The 590,000 barrels-per-day Keystone pipeline is a critical artery taking Canadian crude from northern Alberta to U.S. refineries.

Two pipelines operating near the release site will be excavated on Friday to determine the source of the leak, said Darius Kirkwood, a spokesman for the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration. The agency is monitoring the response to the reported leak, he said.

Canadian pipelines are already congested because of expanding production in recent years, forcing the Alberta provincial government to order production cuts starting last month. Canadian heavy oil has attracted greater demand following U.S. sanctions against Venezuela’s state oil company.

The discount on Canadian heavy crude compared to U.S. light oil widened to $10.15 per barrel on Thursday morning from $9.40 earlier, according to Net Energy Exchange.

TransCanada shares eased 0.2 percent to C$55.98 in Toronto.

An official with the Missouri Department of Natural Resources said on Wednesday that the release of oil had stopped and it planned to find the leak on Thursday.

The Missouri Department of Natural Resources did not immediately respond to a request for comment on Thursday.

 
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A portion of TransCanada Corp’s Keystone oil pipeline remained shut on Thursday for investigation of a possible leak on its right-of-way near St. Louis, Missouri, a company spokesman said.

TransCanada shut the pipeline on Wednesday between Steele City, Nebraska and Patoka, Illinois and sent crews to assess the situation, spokesman Terry Cunha said in an email.

The 590,000 barrels-per-day Keystone pipeline is a critical artery taking Canadian crude from northern Alberta to U.S. refineries.

Two pipelines operating near the release site will be excavated on Friday to determine the source of the leak, said Darius Kirkwood, a spokesman for the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration. The agency is monitoring the response to the reported leak, he said.

Canadian pipelines are already congested because of expanding production in recent years, forcing the Alberta provincial government to order production cuts starting last month. Canadian heavy oil has attracted greater demand following U.S. sanctions against Venezuela’s state oil company.

The discount on Canadian heavy crude compared to U.S. light oil widened to $10.15 per barrel on Thursday morning from $9.40 earlier, according to Net Energy Exchange.

TransCanada shares eased 0.2 percent to C$55.98 in Toronto.

An official with the Missouri Department of Natural Resources said on Wednesday that the release of oil had stopped and it planned to find the leak on Thursday.

The Missouri Department of Natural Resources did not immediately respond to a request for comment on Thursday.

 
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Fiat Chrysler Automobiles NV and Robert Bosch have agreed to pay lawyers representing owners of U.S. diesel vehicles $66 million in fees and costs, according to court filing on Wednesday and people briefed on the matter.

In a court filing late on Wednesday in U.S. District Court in San Francisco, lawyer Elizabeth Cabraser said after negotiations overseen by court-appointed settlement master Ken Feinberg, the companies agreed not to oppose an award of $59 million in attorney’s fees and $7 million in costs.

The lawyers had originally sought up to $106.5 million in fees and costs.

Under a settlement announced last month, Fiat Chrysler and Bosch, which provided emissions control software for the Fiat Chrysler vehicles, will give 104,000 diesel owners up to $307.5 million or about $2,800 per vehicle for diesel software updates.

The legal fees are on top of those costs. Fiat Chrysler and Bosch did not immediately comment late Wednesday.

Fiat Chrysler is paying up to $280 million, or 90 percent of the settlement costs, and Bosch is paying $27.5 million, or 10 percent. The companies are expected to divide the attorney costs under the same formula, meaning Fiat Chrysler will pay $60 million and Bosch $6 million, the people briefed on the settlement said.

U.S. District Judge Edward Chen must still approve the legal fees. He has set a May 3 hearing on a motion to grant final approval.

The Italian-American automaker on Jan. 10 announced it settled with the U.S. Justice Department, California and diesel owners over civil claims that it used illegal software that produced false results on diesel-emissions tests.

Fiat Chrysler previously estimated the value of the settlements at about $800 million.

Fiat Chrysler is also paying $311 million in total civil penalties and issuing extended warranties worth $105 million, among other costs.

The settlement covers 104,000 Ram 1500 and Jeep Grand Cherokee diesels from the model years 2014 to 2016. In addition, Fiat Chrysler will pay $72.5 million for state civil penalties and $33.5 million to California to offset excess emissions and consumer claims.

The hefty penalty was the latest fallout from the U.S. government’s stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules.

The Justice Department has a pending criminal investigation against Fiat Chrysler.
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Fiat Chrysler Automobiles NV and Robert Bosch have agreed to pay lawyers representing owners of U.S. diesel vehicles $66 million in fees and costs, according to court filing on Wednesday and people briefed on the matter.

In a court filing late on Wednesday in U.S. District Court in San Francisco, lawyer Elizabeth Cabraser said after negotiations overseen by court-appointed settlement master Ken Feinberg, the companies agreed not to oppose an award of $59 million in attorney’s fees and $7 million in costs.

The lawyers had originally sought up to $106.5 million in fees and costs.

Under a settlement announced last month, Fiat Chrysler and Bosch, which provided emissions control software for the Fiat Chrysler vehicles, will give 104,000 diesel owners up to $307.5 million or about $2,800 per vehicle for diesel software updates.

The legal fees are on top of those costs. Fiat Chrysler and Bosch did not immediately comment late Wednesday.

Fiat Chrysler is paying up to $280 million, or 90 percent of the settlement costs, and Bosch is paying $27.5 million, or 10 percent. The companies are expected to divide the attorney costs under the same formula, meaning Fiat Chrysler will pay $60 million and Bosch $6 million, the people briefed on the settlement said.

U.S. District Judge Edward Chen must still approve the legal fees. He has set a May 3 hearing on a motion to grant final approval.

The Italian-American automaker on Jan. 10 announced it settled with the U.S. Justice Department, California and diesel owners over civil claims that it used illegal software that produced false results on diesel-emissions tests.

Fiat Chrysler previously estimated the value of the settlements at about $800 million.

Fiat Chrysler is also paying $311 million in total civil penalties and issuing extended warranties worth $105 million, among other costs.

The settlement covers 104,000 Ram 1500 and Jeep Grand Cherokee diesels from the model years 2014 to 2016. In addition, Fiat Chrysler will pay $72.5 million for state civil penalties and $33.5 million to California to offset excess emissions and consumer claims.

The hefty penalty was the latest fallout from the U.S. government’s stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules.

The Justice Department has a pending criminal investigation against Fiat Chrysler.
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President Donald Trump says Treasury Department official David Malpass is his choice to lead the World Bank.

Trump introduced Malpass on Wednesday as the “right person to take on this incredibly important job.” Malpass is a sharp critic of the 189-nation lending institution.

Malpass says he’s honored by the nomination. He says a key goal will be to implement changes to the bank that he and Treasury Secretary Steven Mnuchin helped negotiate, and to ensure that women achieve full participation in developing economies.

Malpass would succeed Jim Yong Kim, who departed in January three years before his term was to end.

Other candidates will likely be nominated for the post by the bank’s member countries. A final decision on a new president will be up to the bank’s board.
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President Donald Trump says Treasury Department official David Malpass is his choice to lead the World Bank.

Trump introduced Malpass on Wednesday as the “right person to take on this incredibly important job.” Malpass is a sharp critic of the 189-nation lending institution.

Malpass says he’s honored by the nomination. He says a key goal will be to implement changes to the bank that he and Treasury Secretary Steven Mnuchin helped negotiate, and to ensure that women achieve full participation in developing economies.

Malpass would succeed Jim Yong Kim, who departed in January three years before his term was to end.

Other candidates will likely be nominated for the post by the bank’s member countries. A final decision on a new president will be up to the bank’s board.
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