Connect with us

Published

on

The US Senate is now discussing the Build Back Better Act, which includes a much-needed reform of the federal EV incentive. Tesla fans are furious about the $4,500 additional incentive for electric cars made by unions.

They see it as one more attack by the Biden administration on Tesla, but they should reframe the issue to highlight the fundamental problem with the new policy.

Over the last year, Tesla fans have complained that the Biden administration has been unfairly treating Tesla.

It started when Tesla wasn’t invited to an EV announcement at the White House earlier this year.

But the true perceived slight was the new reform to the federal EV tax credit.

Tesla fans and the EV community in general have been calling for a reform for a long time since the incentive was poorly designed in the first place.

The limit of 200,000 US deliveries per manufacturer put companies who invested early in volume production of electric cars at a disadvantage.

Tesla and GM were the first to hit the limit, and now EV buyers don’t have access to the incentive when they buy their electric vehicles.

The main goal of reforming the program was to remove the limit, and that’s what they did in the Build Back Better Act.

The section about the federal EV incentive replaces the limit of deliveries per manufacturer with an industry-wide timeline of 10 years to take advantage of the incentive.

This is especially good for Tesla and GM electric vehicle buyers who regain access to the $7,500 tax credit. However, lawmakers made a few, more controversial changes in the version that has now passed the House.

The main change is that they are adding a $4,500 incentive for electric vehicles built at factories where workers are unionized, on top of the $7,500.

Here’s the exact language in the bill:

The amount credit allowed for a qualified vehicle is increased by $4,500 if the final assembly of the vehicle is at a facility in the United States which operates under a union-negotiated collective bargaining agreement.

Tesla fans have perceived this as another “attack” on the automaker by the administration since Tesla is currently the only automaker producing EVs in volume in the US at a non-unionized factory.

The bill is now being discussed in the Senate, and the additional incentive to unions is expected to be a controversial point that might change by the time the bill becomes law.

Reframing the problem

Tesla fans have been pushing back hard against the union clause in the bill, which they see as unfair.

I think they are right, but I think they should move away from focusing on it being a slight against Tesla by the Biden administration, and instead, focus on what makes it fundamentally wrong. The main problem is that the clause doesn’t really do what it aims to do.

In a speech about the reform, President Joe Biden said that the goal was to “grow auto jobs with good pay and benefits.”

By introducing the $4,500 extra incentive for EVs coming out of union factories, Biden assumes that it will incentivize the market to buy vehicles from automakers who have factories staffed with workers with “good pay and benefits.”

But that’s not the requirement in the legislation. Being unionized is the requirement, and that doesn’t necessarily accomplish that.

Here’s a simple hypothetical situation that shows how the incentive is flawed.

Let’s say you have automaker A making electric vehicles out of a unionized factory. The buyers of those electric vehicles have access to the $4,500 additional incentive as per the current version of the bill.

Now you have automaker B making electric vehicles out of a factory where workers are not unionized, but they have comparable pay and benefits to employees working in automaker A’s unionized factory.

Under the current version of the bill, automaker B achieves the actual goal of having auto jobs with good pay and benefits, but buyers of the vehicles made by those workers are being penalized simply because the workers didn’t achieve those conditions through a union.

Now let’s say that the workers at automaker B’s factory are presented with an opportunity to unionize, and because of their situation, they decide to vote against it since they are satisfied with their situation and they don’t want to pay union dues.

In this very plausible situation, which many of Tesla proponents argue is the automaker’s situation, the clause is actually failing to incentivize good-paying auto jobs and actually penalizes them.

What’s the solution?

Now, this is not an anti-union argument. Unions, if well-organized and led by honest people wanting to do good, can have a positive impact.

However, the way this legislation is worded fails to achieve what the Biden administration claims that they want to achieve.

That should be the focus of the opposition of the union clause, and not it being an attack on Tesla or anyone else.

Personally, I think the clause could be removed altogether since $7,500 is a big-enough incentive to accelerate EV adoption, especially if it becomes a point-of-sale incentive in 2023 as it is currently supposed to become.

But if you absolutely want an extra incentive for good-paying auto jobs with good benefits, you can make a clause that achieves just that.

You simply have to replace the language about the electric vehicles “being assembled at a factory operating under a union-negotiated collective bargaining agreement” with “being assembled at a factory where workers receive pay and benefits at or above the industry average.”

It would be up to the companies and workers to see if they can achieve that by themselves or with the help of a union.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Continue Reading

Entertainment

Robin Kaye: American Idol TV executive and her husband shot dead inside their Los Angeles home

Published

on

By

Robin Kaye: American Idol TV executive and her husband shot dead inside their Los Angeles home

An American Idol TV executive and her husband have been found dead in their LA home.

Robin Kaye was a music supervisor on the long-running reality TV series.

The bodies of the 70-year-old and her husband Thomas were discovered after officers conducted a welfare check at their home.

Both had died from gunshot wounds.

Robin Kaye and her husband Thomas. Pic: Facebook
Image:
Robin Kaye and her husband Thomas. Pic: Facebook

Detectives say Raymond Boodarian has been arrested in connection with their deaths.

It is alleged the 22-year-old had burgled their property while they were away on 10 July – killing the couple upon their return.

According to Los Angeles Police, there were “no signs of forced entry or trouble” at the property.

More from US

Ms Kaye was an industry veteran – and had previously worked on shows including Lip Sync Battle and The Singing Bee, as well as several Miss USA and Miss Universe pageants.

Read more US news:
Trump to ‘refine trade deal’ with UK
Unreleased Beyonce music stolen

Pic: ABC7 Los Angeles
Image:
Pic: ABC7 Los Angeles

In a statement, an American Idol spokesperson said: “Robin has been a cornerstone of the Idol family since 2009 and was truly loved and respected by all who came in contact with her.

“Robin will remain in our hearts forever and we share our deepest sympathy with her family and friends during this difficult time.”

Continue Reading

Entertainment

Action taken to stop ticketless Oasis fans from watching this week’s shows in Manchester

Published

on

By

Action taken to stop ticketless Oasis fans from watching this week's shows in Manchester

Huge steel fences have been erected to prevent ticketless fans from watching the Oasis reunion tour in Manchester.

Liam and Noel Gallagher will resume their sold-out run of shows – their first since 2009 – with a performance at Heaton Park tonight, and two more on Saturday and Sunday.

While tens of thousands bought tickets for Oasis’s first two shows last weekend, crowds gathered to glimpse the large screens above the stage in the distance – in an area dubbed “Gallagher Hill” by some on social media.

People walk past a temporary security fence erected ahead of concerts by Oasis in Heaton Park on 1 July. File pic: Reuters
Image:
People walk past a temporary security fence erected ahead of concerts by Oasis in Heaton Park on 1 July. Reuters file pic

Manchester City Council has now said more steel fences have been erected around parts of the park to prevent ticketless fans from watching the gigs, and to protect nature in the park.

“After taking stock of how the first two nights went, additional measures have now been deemed necessary and will be in place for the next three concerts,” it said.

“The erection of the fencing has a dual purpose – both to protect the environment from further damage and to dissuade people from gathering there.

“The necessary measure means the concert will no longer be visible from this area.”

More on Manchester

Please use Chrome browser for a more accessible video player

Friday: Excited fans at Oasis homecoming gig

The fences will cover a large area of the hill within the park’s cattle field, which is being developed as a new woodland area with around 300 young trees planted.

The council added that there would be no facilities for people without a ticket, and said the event area is “double-walled with solid high security fencing all the way round”.

More than 2,000 event security staff and police officers will also be on duty around the site “to ensure both the safety and wellbeing of ticket-holders and that only those who have tickets access the concert”, it said.

Read more:
What was Oasis’s first show in 16 years like?
Fans queue all day for Manchester homecoming gig

John Hacking, the council’s executive member for employment, skills and leisure, also said in a statement that “unfortunately our hand has been forced in having to put these additional measures in place”.

He added: “Our advice to music fans who don’t have tickets for the concerts is to head into the city centre instead.

“The whole city is going all out to celebrate and help everyone have a good time.

“We’ve got some fantastic things going on with a real party atmosphere for everyone to enjoy, whether they’ve got tickets for the Oasis gigs or not.”

Continue Reading

Entertainment

MasterChef presenter John Torode sacked

Published

on

By

MasterChef presenter John Torode sacked

MasterChef presenter John Torode will no longer work on the show after an allegation he used an “extremely offensive racist term” was upheld, the BBC has said.

His co-host Gregg Wallace was also sacked last week after claims of inappropriate behaviour.

On Monday, Torode said an allegation he used racist language was upheld in a report into the behaviour of Wallace. The report found more than half of 83 allegations against Wallace were substantiated.

Torode, 59, insisted he had “absolutely no recollection” of the alleged incident involving him and he “did not believe that it happened,” adding “racial language is wholly unacceptable in any environment”.

John Torode and Gregg Wallace in 2008. Pic:PA
Image:
John Torode and Gregg Wallace in 2008. Pic: PA

In a statement on Tuesday, a BBC spokesperson said the allegation “involves an extremely offensive racist term being used in the workplace”.

The claim was “investigated and substantiated by the independent investigation led by the law firm Lewis Silkin”, they added.

“The BBC takes this upheld finding extremely seriously,” the spokesperson said.

“We will not tolerate racist language of any kind… we told Banijay UK, the makers of MasterChef, that action must be taken.

“John Torode’s contract on MasterChef will not be renewed.”

Australian-born Torode started presenting MasterChef alongside Wallace, 60, in 2005.

Please use Chrome browser for a more accessible video player

Why Gregg Wallace says he ‘will not go quietly’

A statement from Banijay UK said it “takes this matter incredibly seriously” and Lewis Silkin “substantiated an accusation of highly offensive racist language against John Torode which occurred in 2018”.

“This matter has been formally discussed with John Torode by Banijay UK, and whilst we note that John says he does not recall the incident, Lewis Silkin have upheld the very serious complaint,” the TV production company added.

“Banijay UK and the BBC are agreed that we will not renew his contract on MasterChef.”

Read more from Sky News:
BBC reveals highest-earning stars
Men who cut down Sycamore Gap tree locked up
Couple murdered two-year-old grandson

Earlier, as the BBC released its annual report, its director-general Tim Davie addressed MasterChef’s future, saying it can survive as it is “much bigger than individuals”.

Please use Chrome browser for a more accessible video player

BBC annual report findings

Speaking to BBC News after Torode was sacked, Mr Davie said a decision is yet to be taken over whether an unseen MasterChef series – filmed with both Wallace and Torode last year – will be aired.

“It’s a difficult one because… those amateur chefs gave a lot to take part – it means a lot, it can be an enormous break if you come through the show,” he added.

“I want to just reflect on that with the team and make a decision, and we’ll communicate that in due course.”

Mr Davie refused to say what the “seriously racist term” Torode was alleged to have used but said: “I certainly think we’ve drawn a line in the sand.”

In 2022, Torode was made an MBE in the Queen’s Birthday Honours, for services to food and charity.

Continue Reading

Trending