Business
El Segundo Boeing workers file whistleblower lawsuits alleging retaliation
Late last year, Boeing employee Craig Garriott says a 4-ton satellite inside an El Segundo plant fell after engineers failed to properly secure a clamp.
No one was injured by the collapse of the $1 billion-plus satellite that happened over a weekend, but it could have been fatal if workers were present, Garriott claims.
The incident highlighted a raft of safety violations that were ignored by management, according to a whistleblower lawsuit that was recently transferred to federal court in Los Angeles.
In the lawsuit, the veteran Boeing employee alleges that his employer retaliated against him for speaking out about problems he saw at Boeing and Millennium Space Systems, a Boeing defense contractor that makes small satellites.
“I will say that this case is not just a case of retaliation,” said Leonard Sansanowicz, an attorney representing Garriott.
“The larger issues that we’re talking about are public safety, workplace safety and what’s being done with taxpayer dollars.”
Boeing has denied the allegations in court papers, but declined to comment on the litigation.
The lawsuits come as the Arlington, Va.-based aerospace giant’s new chief executive, Kelly Ortberg, grapples with a strike by its machinists union and ongoing controversies over its manufacturing and safety practices — including how it treats employee whistleblowers who have alleged quality control and other problems.
In June, outgoing CEO Dave Calhoun admitted at a Senate hearing that whistleblowers have faced retaliation — saying “I know it happens” — with Boeing promising to take steps to fix the problem.
“This is another black eye,” Dan Bubb, a professor of history with a focus on aviation at the University of Nevada, Las Vegas, said of the lawsuits. “The punches just keep landing one after the other.”
Boeing acquired Millennium Space Systems in 2018 for an undisclosed amount.
Garriott, 53, a technician who has worked at Boeing since 1997, alleges his problems began in 2017, when a supervisor at other Boeing operations in El Segundo asked him and others to sign off that work on a government contract had been completed, when it had not.
When he refused to do so, he said was derided by another manager for not being a “team player,” demoted and denied other work opportunities despite prior positive performance reviews, the lawsuit states.
After taking a leave from Boeing for several years to work for the Cabinet Makers, Millmen and Industrial Carpenters union, he returned to work in 2022 at Boeing and Millennium while also serving as a union steward.
He alleges that he made a series of safety complaints that lead to threats and retaliation against him, including one over thermal testing that was being done on equipment on nights and weekends, despite the danger of fire.
After speaking out, he claims he was verbally abused, physically threatened, accused of creating a hostile work environment and barred from work areas.
Garriott’s spouse, Kathy Moonitz, 55, a Boeing quality inspector since 2021, also has sued her employer, alleging in a separate whistleblower lawsuit that she was collateral damage to her husband’s efforts to stem “pay to play” nepotism at the company.
She claims that after her husband filed a complaint in 2022 that a Boeing manager purchased a $10-million propellant system from a company owned by a family friend and then hired the owner’s child, she was falsely accused of making a bad purchase of welding materials.
Garriott and Moonitz continue to work at the company, said Sansanowicz, who represents both plaintiffs in the lawsuits. Several managers also are defendants in the litigation.
The lawsuits allege the stress of the retaliation has caused the couple to separate several times since their 2021 marriage.
This summer, Boeing successfully moved to have the lawsuits, originally filed in April in Los Angeles County Superior Court, transferred to U.S. District Court, arguing that they involved federal labor issues. Sansanowicz said the company’s procedural advantages in federal court include the requirement for a unanimous verdict in the cases. The plaintiffs are seeking to have the cases returned to state court.
In April, Millennium received a U.S. Space Force contract valued at up to $414 million to build eight satellites capable of detecting advanced threats such as hypersonic missiles. The company’s CEO, Jason Kim, recently left and a successor has yet to be named.
Millennium is part of Boeing’s Defense, Space & Security unit, which saw the departure last month of its CEO, Ted Colbert. That followed challenges that included the ill-fated mission to ferry two astronauts up to the International Space Station on its new Starliner spacecraft.
After launching in June following repeated delays, the capsule returned remotely and uncrewed due to problems with its propulsion system. The mishap was particularly embarrassing since NASA decided to have Elon Musk’s Hawthorne rival SpaceX bring the astronauts back to Earth in February.
Boeing is also continuing to suffer fallout from the crashes of two of its 737 Max 8 planes several years ago, and more recently the blowout of a door plug last January on an Alaska Airlines flight to Ontario International Airport in San Bernardino County. Investigators found the plug on the 737 Max 9 aircraft was missing four bolts.
Attorney Tim Loranger, who is representing passengers on the flight who have sued Boeing, said the allegations in the Los Angeles lawsuits are consistent with union testimony at recent National Transportation Safety Board hearings on the door-plug blowout.
“Boeing’s culture does not value employees’ involvement in safety issues, in issues related to quality assurance and they feel sort of isolated — and that really speaks very loudly to why it is that these problems are happening,” he alleged.
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
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