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Trump warns US at risk if court ends his tariffs

WASHINGTON (AP) — President has warned that the United States will be rendered “defenseless” and possibly “reduced to almost Third World status” if the strikes down the he imposed this year on nearly every country on earth.

The justices sounded skeptical during oral arguments Wednesday of his sweeping claims of authority to impose tariffs as he sees fit.

The truth, though, is that Trump will still have plenty of options to keep taxing imports aggressively even if the court rules against him. He can re-use tariff powers he deployed in his first term and can reach for others, including one that dates back to the Great Depression.

“It’s hard to see any pathway here where tariffs end,” said Georgetown trade law professor Kathleen Claussen. “I am pretty convinced he could rebuild the tariff landscape he has now using other authorities.”

At Wednesday’s hearing, in fact, lawyer Neal Katyal, representing small businesses suing to get the tariffs struck down, argued that Trump didn’t need the boundless authority he’s claimed to impose tariffs under 1977 International Emergency Economic Powers Act (IEEPA). That is because Congress delegated tariff to the White House in several other statutes — though it carefully limited the ways the president could use the authority.

“Congress knows exactly how to delegate its tariff powers,” Katyal said.

Tariffs have become a cornerstone of Trump’s foreign policy in his second term, with double-digit “reciprocal” tariffs imposed on most countries, which he has justified by declaring America’s longstanding trade deficits a national emergency.

The average U.S. tariff has gone from 2.5% when Trump returned to the White House in January to 17.9%, the highest since 1934, according to calculations by Yale University’s Budget Lab.

The president acted alone even though the U.S. Constitution specifically gives the power to tax – and impose tariffs – to Congress.

Still, Trump “will have other tools that can cause pain,” said Stratos Pahis of Brooklyn Law School. Here’s a look at some of his options:

Countering unfair trade practices

The United States has long had a handy cudgel to wallop countries it accuses of engaging in “unjustifiable,” “unreasonable” or “discriminatory” trade practices. That is of the Trade Act of 1974.

And Trump has made aggressive use of it himself — especially against China. In his first term, he cited Section 301 to impose sweeping tariffs on Chinese imports in a dispute over the sharp-elbowed tactics that Beijing was using to challenge America’s technological dominance. The U.S. is also using 301 powers to counter what it calls unfair Chinese practices in the shipbuilding industry.

“You’ve had Section 301 tariffs in place against China for years,” said Ryan Majerus, a partner at King & Spalding and a trade official in Trump’s first administration and in Biden’s.

There are no limits on the size of Section 301 tariffs. They expire after four years but can be extended.

But the administration’s trade representative must conduct an investigation and typically hold a public hearing before imposing 301 tariffs.

John Veroneau, general counsel for the U.S. trade representative in the George W. Bush administration, said Section 301 is useful in taking on China. But it has drawbacks when it comes to dealing with the smaller countries that Trump has hammered with reciprocal tariffs.

“Undertaking dozens and dozens of 301 investigations of all of those countries is a laborious process,” Veroneau said.

Targeting trade deficits

In striking down Trump’s reciprocal tariffs in May, the U.S. Court of International Trade ruled that the president couldn’t use emergency powers to combat trade deficits.

That is partly because Congress had specifically given the White House limited authority to address the problem in another statute: Section 122, also of the Trade Act of 1974. That allows the president to impose tariffs of up to 15% for up to 150 days in response to unbalanced trade. The administration doesn’t even have to conduct an investigation beforehand.

But Section 122 authority has never been used to apply tariffs, and there is some uncertainty about how it would work.

Protecting national security

In both of his terms, Trump has made aggressive use of his power — under of Trade Expansion Act of 1962 — to impose tariffs on imports that he deems a threat to national security.

In 2018, he slapped tariffs on foreign steel and aluminum, levies he’s expanded since returning to the White House. He also plastered Section 232 tariffs on autos, auto parts, copper, lumber.

In September, the president even levied Section 232 tariffs on kitchen cabinets, bathroom vanities and upholstered furniture. “Even though might roll their eyes” at the notion that imported furniture poses a threat to national security, Veroneau said, “it’s difficult to get courts to second-guess a determination by a president on a national security matter.”

Section 232 tariffs are not limited by law but do require an investigation by the U.S. Commerce Department. It’s the administration itself that does the investigating – also true for Section 301 cases — “so they have a lot of control over the outcome,” Veroneau said.

Reviving Depression-era tariffs

Nearly a century ago, with the U.S. and world economies in collapse, Congress passed the Tariff Act of 1930, imposing hefty taxes on imports. Known as the Smoot-Hawley tariffs (for their congressional sponsors), these levies have been widely condemned by economists and historians for limiting world commerce and making the Great Depression worse. They also got a memorable pop culture shoutout in the 1986 movie “Ferris Bueller’s Day Off.”

Section 338 of the law authorizes the president to impose tariffs of up to 50% on imports from countries that have discriminated against U.S. businesses. No investigation is required, and there’s no limit on how long the tariffs can stay in place.

Those tariffs have never been imposed — U.S. trade negotiators traditionally have favored Section 301 sanctions instead — though the United States used the threat of them as a bargaining chip in trade talks in the 1930s.

In September, Treasury Secretary Scott Bessent told Reuters that the administration was considering Section 338 as a Plan B if the Supreme Court ruled against Trump’s use of emergency powers tariffs.

The Smoot-Hawley legislation has a bad reputation, Veroneau said, but Trump might find it appealing. “To be the first president to ever use it could have some cache.”

Key executive convicted of defrauding JPMorgan Chase is sentenced to over 5 years in prison

NEW YORK (AP) — A top executive at a startup company that eased the process for college students applying for financial aid was sentenced Wednesday to over five years in prison for cheating JPMorgan Chase in a $175 million acquisition of the company four years ago.

The Manhattan federal court sentencing of Olivier Amar came a month after Charlie Javice, the founder of the startup known as Frank, was sentenced to seven years in prison.

In sentencing Amar to five years and eight months in prison, Judge Alvin K. Hellerstein said Amar was “intimately involved in the fraud,” including the creation of documents that falsely claimed the company had over 4 million young customers when it actually had fewer than 400,000.

“Although you were not the instigator of the fraud or the person who made the most misrepresentations, you were a key part of it,” he said.

The pair was convicted by a jury in March of presenting fake records to the bank to convince it that Frank had millions of customers when the deal was being negotiated in the summer of 2021. At the trial, witnesses including bank employees testified that the number of customers was important because JPMorgan Chase hoped they would begin using the bank’s financial services.

Before the sentence was announced, Amar got choked up as he spoke about the harm the scandal had caused his family, saying it was pain “that will haunt me forever.”

He said he was “deeply saddened” that the company created to make it easier for students to apply for and obtain financial aid was no longer operating, especially since it helped students get to college and stay there.

“I’m heartbroken by the suffering caused in the aftermath of Frank’s downfall,” Amar said.

Besides the prison sentence, the judge also ordered Amar to pay $223 million in restitution. That number includes $54 million in legal fees that prosecutors said the bank was contractually required to pay on Amar’s behalf because he and Javice worked for the company after the acquisition occurred.

Starbucks union to strike on Red Cup Day over contract

Summary

 

Starbucks’ union members have voted to strike at the company’s U.S. stores next week unless it finalizes a contract agreement, the union said Wednesday.

The strike would begin on Nov. 13, which is the day Starbucks plans to distribute free, reusable red cups. Red Cup Day, a Starbucks tradition since 2018, is typically one of the company’s busiest days of the year.

Starbucks Workers United, the union organizing baristas, didn’t say how many stores would be impacted. But it said workers in at least 25 cities planned to strike and more locations could be added if the union doesn’t see “substantial progress” toward finalizing a contract.

Around 550 of Starbucks’ 10,000 company-operated U.S. stores are currently unionized. More stores have voted to unionize since 2021, but Starbucks closed 59 unionized stores in September as part of a larger restructuring.

The union and the company have yet to agree to a labor contract. In December 2023, Starbucks vowed to finalize an agreement by the end of 2024. But the company ousted Laxman Narasimhan, the CEO who made that promise, last fall. The union said progress has stalled under , the company’s new chairman and CEO.

Starbucks said Wednesday that it’s disappointed the union plans to strike instead of returning to the bargaining table.

“Any agreement needs to reflect the reality that Starbucks already offers the best job in retail, including more than $30 an hour on average in pay and benefits for hourly partners,” Starbucks spokeswoman Jaci Anderson said Wednesday.

In a letter to Starbucks employees released Wednesday, Starbucks’ Chief Partner Officer Sara Kelly said the union has proposed a 65% pay increase immediately and a 77% increase over three years, with additional payments for things like weekends or days when Starbucks runs promotions. Kelly also said some proposals would significantly alter Starbucks’ operations, such as giving workers the ability to shut down mobile ordering if a store has more than five orders in the queue.

“These aren’t serious, evidence-based proposals,” Kelly said.

The union said Starbucks is unfairly lumping together various economic proposals from the union to arrive at those pay raise figures.

Unionized baristas also said they don’t always get the 20 hours per week they need to be eligible for Starbucks’ benefits. They point to Starbucks’ generous pay package for Niccol, which saw him make $95.8 million in 2024. The package included $75 million in equity to make up for what he forfeited by his abrupt departure from Chipotle, his previous employer.

“Our fight is about actually making Starbucks jobs the best jobs in retail. Right now, it’s only the best job in retail for Brian Niccol,” said Jasmine Leli, a three-year Starbucks barista and strike captain from Buffalo, New York. Leli said starting pay for baristas in most states is $15.25 per hour.

The strike would echo previous labor actions against the company. In 2023, thousands of Starbucks workers at more than 200 stores walked off the job on Red Cup Day. Last year, a five-day strike ahead of Christmas closed 59 U.S. stores.

In her letter, Kelly emphasized that most company-owned stores as well as 7,000 licensed locations in places like will remain open if there is a strike.

Starbucks shares rose nearly 4% in Wednesday trading.

US flight cancellations accelerate as airlines comply with government shutdown order

Summary

  • to reduce air traffic by 10% at 40 major U.S.
  • Cuts include airports in New York, Los Angeles and Chicago
  • Move aims to maintain safety during strain
  • plan to limit disruptions, focusing cuts on smaller routes

U.S. airlines began canceling hundreds of flights Thursday due to the Federal Administration’s order to reduce traffic at the country’s busiest airports starting Friday because of the government shutdown.

Nearly 500 flights scheduled for Friday were already cut nationwide, and the number of cancellations climbed throughout Thursday afternoon, according to FlightAware, a website that tracks flight disruptions.

That’s more than four times the number of flights canceled on Thursday.

The FAA has ordered airlines to phase in a 10% reduction in their flight schedules at 40 of the busiest airports across more than two dozen states. The disruptions will affect service at many smaller airports, too, and on Thursday some travelers began changing or canceling their itineraries preemptively.

Airlines were scrambling to figure out where to cut, and travelers with plans for the weekend and beyond waited nervously to see if their flights would take off as scheduled.

The affected airports include busy connecting hubs and those in popular tourist destinations, including Atlanta, Denver, Orlando, Miami, and San Francisco. In some of the biggest cities — such as New York, Houston and Chicago — multiple airports will be affected.

Airlines will phase in the cuts at the direction of the FAA, starting with eliminating 4% of flights at the 40 airports on Friday and working up to 10%, according to three people familiar with what the agency said, but who were not authorized to discuss it publicly.

will cut 4% of its flights over the weekend based on FAA guidance, said company spokesperson Josh Freed.

The FAA had not yet published an official order as of midday Thursday and didn’t immediately respond to questions about implementation details.

Some airlines plan to focus on slashing routes to and from small and medium-sized cities.

“This is going to have a noticeable impact across the U.S. air system,” industry analyst Henry Harteveldt said.

The flight reductions coming just weeks before the busy holiday season have travelers already changing their plans or looking at other options.

Fallon Carter canceled her Friday flight from New York to Tampa, Florida, where she planned to spend the weekend at the beach. She was worried about making it back to Long Island for her best friend’s wedding where she’ll be a bridesmaid.

“I don’t know if I get there, will I get home?” Carter said.

The FAA said Wednesday it would reduce air traffic by 10% across “high-volume” markets to maintain travel safety as exhibit signs of strain during the shutdown.

It’s imposing the reductions to relieve pressure on air traffic controllers who are working without pay during the shutdown and have been increasingly calling off work. The move also comes as the Trump administration is ramping up pressure on Democrats in Congress to end the shutdown.

Air traffic controllers have been working unpaid since the shutdown began Oct. 1. Most work mandatory overtime six days a week, leaving little time for side to help cover bills unless they call out.

The FAA in recent weeks has delayed flights when airports or its other facilities are short on controllers.

Airlines shuffling schedules

Passengers should start to be notified about cancellations Thursday. Airlines said they would try to minimize impact on customers, some of whom will see weekend travel plans disrupted with little notice.

United, Delta Air Lines and American Airlines said they would offer refunds to passengers who opt not to fly, even if they purchased non-refundable tickets.

The head of Frontier Airlines recommended that travelers buy backup tickets with another airline to avoid being stranded.

The cuts also could disrupt package deliveries because two airports with major distribution centers are on the list — FedEx operates at the airport in Memphis, Tennessee, and UPS in Louisville, Kentucky, the site of this week’s deadly cargo plane crash.

The cuts could affect as many as 1,800 flights, or upward of 268,000 passengers, per day, according to an estimate by aviation analytics firm Cirium.

Airlines are used to dealing with canceling thousands of flights on short notice during severe weather, but the difference now is that these cuts during the shutdown will last indefinitely until safety data improves.

“I’m not aware in my 35-year history in the aviation market where we’ve had a situation where we’re taking these kinds of measures,” FAA administrator Bryan Bedford said Wednesday. “We’re in new territory in terms of government shutdowns.”

Shutdown already straining travel
The shutdown is putting unnecessary strain on the system and damaging confidence in the U.S. air travel experience,” said U.S. Travel Association President and CEO Geoff Freeman.

Kelly Matthews, who lives in Flat Rock, Michigan and frequently flies for work, said she has canceled most of her upcoming trips and understands why federal airport employees have stopped showing up.

“You can’t expect people to go into work when they’re not getting a paycheck for the continuation of over a month now,” she said. “I mean, it’s not a matter of them not wanting to do the job — but you can’t afford to pay for gas, your day care and everything else.”

Controller staffing worsening

The past weekend brought some of the worst staffing issues since the start of the shutdown.

From Friday to Sunday evening, at least 39 facilities reported potential staffing limits, according to an AP analysis of operations plans shared through the Air Traffic Control System Command Center system. The figure, which is likely an undercount, is well above the average for weekends before the shutdown.

Scale AI to open Crystal City office in December

Scale , a San Francisco-based provider of data and full-stack technologies for applications, is saying goodbye to its Washington, D.C., office for greener pastures in , according to a Tuesday announcement.

In December, plans to open a new 22,000-square-foot office at 2231 Crystal Drive, which the company described in a news release as “a growing technology and innovation corridor.”

Previously, about 30 team members worked out of a 5,500-square-foot office at 2121 K Street NW in Washington, D.C., according to a spokesperson.

The new office has capacity for 100 team members. “It will enable closer collaboration with our federal and defense partners featuring upgraded collaboration spaces for customer engagements,” Scale AI stated in the announcement.

The company, founded in 2016, currently has 1,000 employees and plans to add 200 positions “across all areas of the business,” the news release stated.

invested $14.3 billion in Scale AI for a 49% stake this summer, according to multiple news reports. Scale AI’s founder Alexandr Wang has joined Meta to work on its AI efforts.

FAA reducing air traffic by 10% across 40 ‘high-volume’ markets during government shutdown

Summary:

WASHINGTON (AP) — The Federal Aviation Administration said Wednesday that it would reduce air traffic by 10% across 40 “high-volume” markets beginning Friday morning to maintain during the ongoing government shutdown.

The reduction stands to impact thousands of flights nationwide because the FAA directs more than 44,000 flights daily, including commercial passenger flights, cargo planes and private aircraft.

Air traffic controllers have been working unpaid since the shutdown began Oct. 1. With some calling out of work, staffing shortages during some shifts have led to flight delays at a number of U.S. airports.

Citing growing staffing pressures, FAA Administrator Bryan Bedford said the agency would not wait for a crisis to act

“We can’t ignore it,” he said.

Bedford and Secretary said they would meet with airline executives later Wednesday to determine how to safely implement the reduction in flights. Until then, both declined to name the affected markets. Bedford said a list would be released sometime Thursday.

“If the pressures continue to build even after we take these measures,” Bedford said, “we’ll come back and take additional measures.”

The Associated Press on Wednesday sent requests for comment on the FAA’s decision to major U.S. airlines, including Delta, United and American Airlines.

Southwest Airlines said it was evaluating potential impacts to its schedule and would reach out as soon as possible to customers whose travel plans may be impacted.

“We continue to urge Congress to immediately resolve its impasse and restore the National Airspace System to its full capacity,” the carrier said.

The FAA sometimes slows down or stops flights from taking off toward an airport due to weather conditions or when there aren’t enough controllers and other personnel or facilities are unable to pick up the slack. Last weekend saw some of the worst staffing shortages of the shutdown, which became the longest on record early Wednesday.

From Friday to Sunday evening, at least 39 different facilities announced there was some potential for limited staffing, according to an Associated Press analysis of operations plans sent through the Air Traffic Control System Command Center system. The figure, which is likely an undercount, is well above the average for weekends before the shutdown

During weekend periods from Jan. 1 to Sept. 30, the average number of airport towers, regional centers that oversee multiple airports and facilities that monitor traffic at higher altitudes announced the potential for staffing issues was 8.3, according to the AP analysis. But during the five weekend periods since the shutdown began on Oct. 1, the average more than tripled to 26.2 facilities.

Most controllers have continued to work mandatory overtime six days a week during the shutdown. That leaves little time for a side job to help cover bills, mortgage payments and other expenses unless controllers call out.

Major airlines, unions and the wider travel industry have urged Congress to end the shutdown.

Wednesday’s announcement came on the heels of Duffy warning a day earlier that there could be chaos in the skies next week if the shutdown drags on long enough for air traffic controllers to miss their second full paychecks next Tuesday.

Duffy said the FAA wanted to take a proactive approach instead of reacting after a disaster. He pointed to the deadly mid-air collision in January between a commercial jet and a military helicopter near Ronald Reagan Washington National Airport.

“We learned from that. And so now we look at data, and before it would become an issue, we try to assess the pressure and try to make moves before there could be adverse consequences,” Duffy said. “And that’s what’s happening here today.”

___

By MATTHEW DALY, JOSH FUNK and RIO YAMAT Associated Press; Associated Press journalist Christopher L. Keller contributed from Albuquerque, New Mexico.

Irish data center power manufacturer opens first US plant in James City County

An Irish energy infrastructure manufacturer focused on has established its first U.S. plant in , a $5.225 million investment expected to create 250 within the next year, announced Wednesday.

Dublin, Ireland-based ‘s new 400,000-square-foot facility will produce power systems that will serve data centers throughout the United States. CEL already has 50 employees at its new facility across engineering, research and development, finance, management and sales. The number of jobs is expected to rise to 500 by 2030, Youngkin said.

“We are thrilled to welcome CEL to Virginia as they establish their first-ever American site right here in the commonwealth,” Youngkin said in a statement. “Everyone involved in this project moved at the speed of Virginia to make this possible, and the impact is already being felt on the ground.”

The company has signed a long-term on a recently constructed manufacturing facility for the project. According to a company spokesperson, CEL’s news facility has been operational since June this year and has been shipping finished products to its US customers since July.

Right now, CEL is manufacturing from just 165,000 square feet of space but it expects to expand into the rest of the facility over the coming years as demand grows.

In a statement, Secretary of Commerce and Trade Juan Pablo Segura said the facility’s location shows “the positive ripple effects” of data center growth.

“With this new plant, we are ensuring every dollar invested in Virginia data centers stays in Virginia,” he said. “For data centers in other parts of the country or the world, Virginia is uniquely positioned to provide fast, reliable transportation of the products they need.”

CEL Managing Director Niall McFadden, an Irish investor, thanked Youngkin for his support of the project in a statement.

Founded in 1982, CEL Critical Power designs and manufactures power solutions for the global and cloud industry. Products include low-voltage power distribution systems, switchgear equipment and remote power panels.

The company says its products are able to handle increased workloads of the next generation of AI microchips, such as those designed by Nvidia.

The topic of increased energy demands driven by the development of more data centers and increased use of AI has become a major source of controversy in Virginia, as some localities have rejected such projects. According to Dominion Energy, the state’s energy demand is expected to increase 5% each year over the next 20 years and double by 2045, leaving the utility and state lawmakers grappling with how best to produce  needed electricity.

worked with James City County and the Alliance to secure the project for Virginia. CEL will also be supported through the Virginia Jobs Investment Program, which provides consulting services and funding to companies creating jobs at no cost to the businesses.

Spanberger names transition team leaders

Virginia Gov.-elect Abigail announced her Wednesday, as she prepares to take office in January 2026.

The Democratic , who will be Virginia’s first female governor, named seven transition team co-chairs. They include:

  • Yohannes Abraham, former executive director for the Biden-Harris transition team, former U.S. ambassador to the Association of Southeast Asian Nations (ASEAN) and a visiting professor at the University of Virginia;
  • Kelly Cannon, CEO of Virginia Hospital & Healthcare Association Foundation;
  • Marvin Figueroa, vice president of health and life sciences for BGR Group, and former state deputy secretary of health and human resources under former Gov. Ralph Northam;
  • Daun Hester, City of Norfolk treasurer and former Virginia delegate;
  • Laura Lafayette, CEO of the Richmond Association of Realtors and the Central Virginia Regional Multiple Listing Service;
  • Chris Lu, former executive director for the Obama-Biden transition team, former U.S. deputy secretary of labor and James R. Schlesinger Distinguished Professor at U.Va.’s Miller Center;
  • Samson Signori, campaign manager for Spanberger’s gubernatorial campaign and former manager of her 2022 congressional campaign.

Spanberger’s transitional chief of staff will be Bonnie Krenz-Schnurman, who previously was her chief of staff for five years in the U.S. House of Representatives, and her transition director will be Karen Mask, Spanberger’s former district director. Mask will serve as deputy chief of staff for operations once Spanberger takes office, according to the announcement.

Krenz-Schnurman was a senior policy adviser during the Obama administration, focusing on energy and climate change policy. Mask was a senior policy analyst for the Virginia Department of Health and led the state’s K-12 schools pandemic response. In the private sector, she was in senior leadership at Toys”R”Us, and later worked in pediatric health and clinical research.

Five current and former elected officials also will serve as honorary co-chairs. They include: Virginia State Senate President Pro Tempore Louise Lucas; House of Delegates Speaker Don Scott; Del. Candi Mundon King; former U.S. Rep. Jennifer Wexton and former U.S. Rep. Rick Boucher, a Democrat who represented Southwest Virginia from 1983 to 2011. Wexton, a Democrat who represented parts of Fairfax and Loudoun counties from 2019 until January, did not seek re-election due to her diagnosis of progressive supranuclear palsy.

Spanberger will take office Jan. 17, 2026, along with fellow Democrats Lt. Gov.-elect Ghazala Hashmi and Attorney General-elect Jay Jones. Democrats also increased their majority in the 100-seat House by 13 seats and will be coming in with a 64-seat majority.

Rivers Casino Portsmouth workers win Virginia’s first casino union contract

SUMMARY:

  • Rivers Casino ‘s 29 slot attendants voted 95% to approve Virginia’s first casino contract
  • Union leaders say the deal will set a precedent as more open across the state
  • The three-year agreement includes wage increases, employer-paid health care, job protections and added paid time off

In a first for Virginia’s industry, workers at have approved a three-year union contract with a 95% yes vote.

Represented by Local 822, 29 slot attendants at the casino are now the first casino workforce in the state to ratify a agreement. Union leaders say the deal will set a precedent for wages and workplace protections as casinos continue to expand across Virginia.

The contract covers pay, locks in employer-paid health care coverage, provides protections from at-will employment and grants additional paid time off.

“This is history in the making,” Local 822 President James Wright said in a statement. “For the first time, Virginia gaming workers have a legally binding union contract that delivers guaranteed raises, strong benefits and just cause protections. This agreement proves that when workers stand together, they can transform their industry.”

Negotiations lasted about two years, according to Veronica Sawyer, assistant director of convention trade show and casino division for the International Brotherhood of Teamsters, who said health care was a top priority. Union coverage is saving some workers as much as $100 or more a month.

In a statement, slot attendant and Local 822 member Natasha O’Guinn said the contract meant stability for her and her family.

“I know my job is protected, my health care is covered and my wages and tips together give me the security to plan for the future,” she said. “We finally have a voice and a fair contract that respects what we do every day.”

According to Sawyer, the agreement only applies to the casino’s 29 slot attendants, as employees with other roles at the casino are not yet represented by the union. Since opening in 2023, the casino employs about 1,200 .

However, Sawyer says the contract will have broad implications for the state’s casino industry, likely influencing others to advocate for similar agreements.

“I think it’s going to play a big part in the gaming industry,” she said. “A new casino is coming in Norfolk. And you know, people are paying attention. Health care is a big issue with workers having to pay a lot of money for company health insurance, and the employer has control over how much they pay. And so I think when people see the health care that the slot attendants have, others are going to be reaching out and wanting to get on board, just for that alone.”

Virginia has three casinos operating in Bristol, Danville and Portsmouth, and temporary casinos are set to open soon in Norfolk and Petersburg, with permanent casinos to follow.

Rivers Casino Portsmouth did not comment about the precedent this agreement may set or how it might impact employee recruitment and retention or whether these types of agreements are common across properties. However, the company said it valued its workers and remains committed to “providing a supportive and rewarding workplace for all our team members while furthering our investment in Portsmouth.”

“We look forward to continuing our positive relationship with the Teamsters and are pleased that, through recent negotiations, we were able to bring wages for the individual work group they represent in line with the increases achieved by our other team members,” the casino said in a statement.

In May, Rush Street, a Chicago-based casino developer, and Rivers Casino Portsmouth announced plans to build a $65 million hotel adjacent to the casino, with an estimated opening in early 2027. To be known as the Landing Hotel, the eight-story property will feature 106 guest rooms, including 32 suites. S.B. Ballard Construction was announced as the hotel’s general contractor in July. A casino spokesperson previously said construction began in the summer.

Based in Norfolk, Teamsters Local 822 represents over 3,000 workers across the area working in a variety of industries.

US Steel details plans to invest $11B by 2028

SUMMARY:

  • Nippon to invest $11B to modernize by 2028
  • Company targets $3B in savings through upgrades and efficiencies
  • Plan aims to protect or create more than 100,000 U.S.

 

NEW YORK (AP) — United States Steel on Tuesday detailed its billion-dollar multiyear growth plan with new owner that includes modernizing the century-old steelmaker.

The announcement comes just five months after Nippon Steel finalized a “ historic partnership ” with the Pittsburgh steelmaker in a deal worth nearly $15 billion. That deal included a “golden share” provision that gave the the to appoint a board member and a say in some company decisions.

The combined company became the world’s fourth-largest steelmaker, and Nippon agreed to invest $11 billion to upgrade U.S. Steel’s facilities.

Tuesday the company said it will make the investments by the end of 2028. The plan targets unlocking $2.5 billion in savings from capital investments and another $500 million from operational efficiencies.

U.S. Steel says it has identified more than 200 initiatives to save money across all business segments, assisted by nearly 50 professionals from Nippon Steel. The company is modernizing and expanding its operations and expanding research and development to feature “higher value, lower emission steel.”

CEO Dave Burritt said, “We have a robust pipeline of growth projects, ranging from the of our Gary (Indiana) Works Hot Strip Mill to the new slag recycler at Mon Valley Works (Pennsylvania) and the development of new product capabilities.”

The plan is designed to “protect and create more than 100,000 jobs nationwide in the United States,” although U.S. Steel did not provide more specifics.

David McCall, president of United Steelworkers International, said in a statement, “Since our first engagement with Nippon, we’ve been clear that investing in these workers and their facilities is the best use of the company’s resources. As Nippon and U.S. Steel begin to lay out their vision, we encourage them to prioritize this skilled, workforce – now and well into the future.”