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Workers stand in line to cast ballots for a union election at Amazon’s JFK8 distribution center, in the Staten Island borough of New York City, U.S. March 25, 2022.

Brendan Mcdermid | Reuters

For the past few months, an Amazon warehouse near Albany has hosted the latest labor battle between the retail giant and its workers.

Workers at the facility, located in the upstate town of Schodack, sought to capitalize on a successful union campaign at another Amazon warehouse, more than 150 miles away on Staten Island, which resulted in the company’s first unionized site in the U.S.

On Tuesday, those hopes were dashed.

Employees at the warehouse near Albany voted overwhelmingly against joining a union, delivering a blow to the Amazon Labor Union, the group behind the Staten Island victory. The ALU can challenge the results of the election, and it has a week to file an appeal to the National Labor Relations Board.

Workers at the ALB1 warehouse began organizing earlier this year, believing that a union could give employees more power to address their concerns about safety, inadequate paid time off and low wages. The starting wage at the facility rose to $17 an hour, up from $15.70 an hour, after Amazon raised pay for its frontline workforce nationwide.

Following the vote, an Amazon spokesperson said “Amazon as we think that this is the best arrangement for both our employees and customers. We will continue to work directly with our teammates in Albany, as we do everywhere, to keep making Amazon better every day.”

Here’s what workers on the ground told us.

‘$18 does not stretch very far’

Cari Carter, who has worked at ALB1 for two years, makes $18.20 an hour as a packer, placing items into boxes before they’re shipped out. As a single mother with three children, she said she can’t afford to manage her expenses and recently took out a loan from Amazon in order to pay her car bills.

“Some people are happy making $18 an hour because that’s enough to support themselves. They’re usually single individuals,” Carter said in an interview outside the warehouse. “I myself am a single mother of three. $18 does not stretch very far.”

Her son, Najiel Carter, works the same morning shift as her at ALB1. He said he attended meetings held by Amazon and the union and was leaning toward voting for the union because he felt it could lead to longer break times and a less stressful atmosphere at work.

Carter said she threw her support behind the union after she grew frustrated about pay and Amazon’s policies around unpaid time off. She said Amazon enforced the policy too harshly, pointing to a co-worker who was recently fired after he ran out of unpaid time off, and was absent from work for six hours while he dealt with a car emergency.

Amazon refused to let the employee use their vacation time to cover the absence, she said, adding that employees even offered to “donate their unpaid time” to help him keep his job.

“It just so happened that he had an unforeseen incident happen, he’s negative six hours, and he’s gone,” she said.

Michael Verrastro said he also feels a union is necessary to keep Amazon from unfairly disciplining its workers. In late August, Amazon fired Verrastro from ALB1 after he kicked an empty box out of frustration when tools at his workstation repeatedly malfunctioned.

Amazon said Verrastro, who joined the company in 2020, violated its workplace violence policy and claimed a box hit his co-worker after he kicked it. Verrastro said he acted out because he was concerned he wouldn’t reach his productivity goals for the day.

Verrastro said the loss of his job has created significant hardship for him, as he was diagnosed in 2020 with aggressive prostate cancer and is still undergoing treatment. Two weeks ago, he was denied unemployment benefits.

“Here I am, now 60 years old, aggressive prostate cancer, ran out of insurance, had to go short term on Medicaid, no right to an appeal to go back to work, and Amazon just refuses to acknowledge what they’re doing,” Verrastro said. “Unfortunately, I’m not the only person who something like this has happened to.”

After he was fired, Verrastro said he got a call from lead organizer Heather Goodall and was connected to the ALU’s lawyers. They filed an unfair labor practice charge with the National Labor Relations Board over his firing. Verrastro has also filed a complaint with the New York State Division of Human Rights.

“I want people to know what this company does to its people, to its employees, to the people who make the company possible,” Verrastro said.

‘A union isn’t good for Amazon’

Other employees said they voted against the union, saying they felt it was unnecessary because the pay and benefits offered by Amazon are generous.

“If anything, I’m concerned a union will take money out of my paycheck,” said Dionte Whitehead, who works as a stower at ALB1. “A union isn’t good for Amazon.”

Workers also expressed skepticism about the ALU. The organization was started by Chris Smalls last year after he was fired from his management assistant job for leading a protest at Amazon’s sprawling JFK8 warehouse on Staten Island. The victory at JFK8 turned into a lightning rod for labor organizers seeking to unionize Amazon and other companies across the country.

But the group has struggled to build momentum after a failed union drive at another Staten Island facility, and it has suffered from infighting among members. The election win has also been clouded by a months-long court battle with Amazon, which is seeking to have the results thrown out.

Amazon sought to discredit the ALU in posters and other communications broadcast at ALB1. One message displayed on a screen inside the warehouse called the union “untested and unproven,” while flyers left on a break room table said “The ALU isn’t telling the truth.”

ALB1 worker Tyrese Caldwell said he voted no because he felt the ALU is too inexperienced.

“They’re a fresh union, and they’re trying to tackle something as big as Amazon,” Caldwell said.

Michael Oakes, another ALB1 employee, agreed. “If it were an established union, not the ALU, I might be behind it,” he said.

Plan B: A more experienced union?

Carson, the packer, said ahead of the vote on Tuesday that ALB1 organizers had discussed other strategies if they lost the election, including asking workers if they’d prefer to be represented by a well-established union.

“There are a lot of people who were opposed because it was a startup union,” she added.

Major national unions have tried to unionize Amazon workers for years to no avail. The Retail, Wholesale and Department Store Union is seeking to represent workers at a Bessemer, Alabama, warehouse, but a vote there last spring did not have a clear outcome and is currently in court as both sides challenge some votes. Meanwhile, the International Brotherhood of Teamsters last year announced a renewed push to scale up efforts to organize Amazon workers.

Even if some workers question the fledgling Amazon Labor Union’s ability to organize ALB1, Smalls signaled he remains committed to the effort.

“This won’t be the end of ALU at ALB1,” Smalls said in an emailed statement on Tuesday.

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Inside one of the first all-female hacker houses in San Francisco

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Inside one of the first all-female hacker houses in San Francisco

For Molly Cantillon, living in a hacker house wasn’t just a dream, but a necessity.

“I had lived in a few hacker houses before and wanted to replicate that energy,” said Cantillon, 20, co-founder of HackHer House and founder of the startup NOX. “A place where really energetic, hardcore people came together to solve problems. But every house I lived in was mostly male. It was obvious to me that I wanted to do the inverse and build an all-female hacker house that created the same dynamic but with women.”

Cantillon, who has lived in several hacker houses over the years, saw a need for a space dedicated exclusively to women. That’s why she co-founded HackHer House, the first all-female hacker house in the San Francisco Bay Area.

“A hacker house is a shared living space where builders and innovators come together to work on their own projects while collaborating with others,” said Jennifer Li, General Partner at Andreessen Horowitz and sponsor of the HackHer House. “It’s a community that thrives on creativity and resource sharing, making it a cost-effective solution for those in high-rent areas like Silicon Valley, where talented founders and engineers can easily connect and support each other.”

Founded by Cantillon, Zoya Garg, Anna Monaco and Anne Brandes, this house was designed to empower women in a tech world traditionally dominated by men. 

“We’re trying to break stereotypes here,” said Garg, 21, a rising senior at Stanford University. “This house isn’t just about living together; it’s about creating a community where women can thrive in tech.”

Located in North Beach, HackHer House was home this summer to seven women, all of whom share the goal of launching successful ventures in tech. 

Venture capital played a key role in making HackHer House possible. With financial backing, the house offered subsidized rent, allowing the women to focus on their projects instead of struggling with the Bay Area’s notoriously high living costs.

“New grad students face daunting living expenses, with campus costs reaching the high hundreds to over a thousand dollars a month,” said Li. “In the Bay Area, finding a comfortable room typically starts at $2,000, and while prices may have eased slightly, they remain significantly higher than the rest of the U.S. This reality forces many, including founders, to share rooms or crash on friends’ couches just to make ends meet.” 

Hacker houses aren’t new to the Bay Area or cities like New York and London. These live-in incubators serve as homes and workspaces, offering a collaborative environment where tech founders and innovators can share ideas and resources. In a city renowned for tech advancements, hacker houses are viewed as critical for driving the next wave of innovation. By providing affordable housing and a vibrant community, these spaces enable entrepreneurs to thrive in an otherwise cutthroat and expensive market.

Watch this video to see how Hacker House is shaping the future of women in tech.

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Elon Musk’s X will be allowed back online in Brazil after paying one more fine

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Elon Musk's X will be allowed back online in Brazil after paying one more fine

The Federal Supreme Court (STF) in Brazil suspends Elon Musk’s social network after it fails to comply with orders from Minister Alexandre de Moraes to block accounts of those being investigated by the Brazilian justice system. 

Cris Faga | Nurphoto | Getty Images

X has to pay one last fine before the social network owned by Elon Musk is allowed back online in Brazil, according to a decision out Friday from the country’s top justice, Alexandre de Moraes.

The platform was suspended nationwide at the end of August, a decision upheld by a panel of judges on Sept. 2. Earlier this month, X filed paperwork informing Brazil’s supreme court that it is now in compliance with orders, which it previously defied.

As Brazil’s G1 Globo reported, X must now pay a new fine of 10 million reals (about $2 million) for two additional days of non-compliance with the court’s orders. X’s legal representative in Brazil, Rachel de Oliveira, is also required to pay a fine of 300,000 reals.

The case dates back to April, when de Moraes, the minister of Brazil’s supreme court, known as Supremo Tribunal Federal (STF), initiated a probe into Musk and X over alleged obstruction of justice.

Musk had vowed to defy the court’s orders to take down certain accounts in Brazil. He called the court’s actions “censorship,” and railed online against de Moraes, describing the judge as a “criminal” and encouraging the U.S. to end foreign aid to Brazil.

In mid-August, Musk closed down X offices in Brazil. That left his company without a legal representative in the country, a federal requirement for all tech platforms to do business there.

By Aug. 28, de Moraes’ court threatened a ban and fines if X didn’t appoint a legal representative within 24 hours, and if it didn’t comply with takedown requests for accounts the court said had engaged in plots to dox or harm federal agents, among other things.

Earlier this month, the STF froze the business assets of Musk companies, including both X and satellite internet business Starlink, operating in Brazil. The STF said in court filings that it viewed Starlink parent SpaceX and X as companies that worked together as related parties.

Musk wrote in a post on X at that time that, “Unless the Brazilian government returns the illegally seized property of and SpaceX, we will seek reciprocal seizure of government assets too.”

On August 29, 2024, in Brazil, the Minister of the Supreme Court, STF Minister Alexandre de Moraes, orders the blocking of the accounts of another company, Starlink, of Elon Musk, to guarantee the payment of fines imposed by the STF due to the lack of representatives of X in Brazil. 

Ton Molina | Nurphoto | Getty Images

As head of the STF, de Moraes has long supported federal regulations to rein in hate speech and misinformation online. His views have garnered pushback from tech companies and far-right officials in the country, along with former President Jair Bolsonaro and his supporters.

Bolsonaro is under investigation, suspected of orchestrating a coup in Brazil after losing the 2022 presidential election to current President Luiz Inacio Lula da Silva.

While Musk has called for retribution against de Moraes and Lula, he has worked with and praised Bolsonaro for years. The former president of Brazil authorized SpaceX to deliver satellite internet services commercially in Brazil in 2022.

Musk bills himself as a free speech defender, but his track record suggests otherwise. Under his management, X removed content critical of ruling parties in Turkey and India at the government’s insistence. X agreed to more than 80% of government take-down requests in 2023 over a comparable period the prior year, according to analysis by the tech news site Rest of World.

X faces increased competition in Brazil from social apps like Meta-owned Threads, and Bluesky, which have attracted users during its suspension.

Starlink also faces competition in Brazil from eSpace, a French-American firm that gained permission this year from the National Telecommunications Agency (Anatel) to deliver satellite internet services in the country.

Lukas Darien, an attorney and law professor at Brazil’s Facex University Center, told CNBC that the STF’s enforcement actions against X are likely to change the way large technology companies will view the court.

“There is no change to the law here,” Darien wrote in a message. “But specifically, big tech companies are now aware that the laws will be applied regardless of the size of a business and the magnitude of its reach in the country.”

Musk and representatives for X didn’t immediately respond to a request for comment on Friday.

Late Thursday, X Global Government Affairs posted the following statement:

“X is committed to protecting free speech within the boundaries of the law and we recognize and respect the sovereignty of the countries in which we operate. We believe that the people of Brazil having access to X is essential for a thriving democracy, and we will continue to defend freedom of expression and due process of law through legal processes.”

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OpenAI sees roughly $5 billion loss this year on $3.7 billion in revenue

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OpenAI sees roughly  billion loss this year on .7 billion in revenue

Sam Altman, CEO of OpenAI, at the Hope Global Forums annual meeting in Atlanta on Dec. 11, 2023.

Dustin Chambers | Bloomberg | Getty Images

OpenAI, the creator of ChatGPT, expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC has confirmed.

The company generated $300 million in revenue last month, up 1,700% since the beginning of last year, and expects to bring in $11.6 billion in sales next year, according to a person close to OpenAI who asked not to be named because the numbers are confidential.

The New York Times was first to report on OpenAI’s financials earlier on Friday after viewing company documents. CNBC hasn’t seen the financials.

OpenAI, which is backed by Microsoft, is currently pursuing a funding round that would value the company at more than $150 billion, people familiar with the matter have told CNBC. Thrive Capital is leading the round and plans to invest $1 billion, with Tiger Global planning to join as well.

OpenAI CFO Sarah Friar told investors in an email Thursday that the funding round is oversubscribed and will close by next week. Her note followed a number of key departures, most notably technology chief Mira Murati, who announced the previous day that she was leaving OpenAI after six and a half years.

Also this week, news surfaced that OpenAI’s board is considering plans to restructure the firm to a for-profit business. The company will retain its nonprofit segment as a separate entity, a person familiar with the matter told CNBC. The structure would be more straightforward for investors and make it easier for OpenAI employees to realize liquidity, the source said.

OpenAI’s services have exploded in popularity since the company launched ChatGPT in late 2022. The company sells subscriptions to various tools and licenses its GPT family of large language models, which are powering much of the generative AI boom. Running those models requires a massive investment in Nvidia’s graphics processing units.

The Times, citing an analysis by a financial professional who reviewed OpenAI’s documents, reported that the roughly $5 billion in loses this year are tied to costs for running its services as well as employee salaries and office rent. The costs don’t include equity-based compensation, “among several large expenses not fully explained in the documents,” the paper said.

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