Business
California could require licenses for stonecutting shops amid deaths of young workers
As growing numbers of countertop cutters in California suffer from an incurable and deadly lung disease, lawmakers are seeking to clamp down on which businesses can legally perform such work.
Health officials have tied the rise in silicosis to the surging popularity of engineered stone, an artificial product that can be much higher in silica than natural slabs. The disease is caused by inhaling tiny bits of crystalline silica that scar the lungs, leaving ailing workers reliant on oxygen tanks and lung transplants to survive. More than a dozen countertop workers in California have died, some barely into middle age.
In the San Fernando Valley, outreach workers have found immigrant workers cutting the artificial material in dusty shops with scant protections. When Cal/OSHA took a closer look at the industry in 2019 and 2020, it found that 72% of shops where it conducted air sampling were in violation of silica rules. It recently estimated that out of nearly 5,000 such workers statewide, as many as 200 could die of the disease.
Despite the risks posed by cutting and grinding the material, “there is uncontrolled access in California to materials that contain silica,” said Jim Hieb, chief executive of the Natural Stone Institute, an industry group. “This means anyone can purchase materials and allow any contractor to fabricate them” — cutting and polishing a slab for countertop installation — “without regulatory control.”
That could change if lawmakers pass AB 3043, a state bill that would establish a licensing system for businesses that cut and polish slabs of engineered or natural stone.
Under the bill, no business could legally do stone “fabrication” work in California without such a state license. To obtain one, shops would need to show they were following state requirements for workplace safety and ensure employees were trained in protective measures. The bill would also bar suppliers from providing slabs to unlicensed cutters.
In addition, AB 3043 would prohibit such shops from cutting slabs without using “wet methods” to tamp down dust. Emergency rules adopted in December by state regulators already require such systems whenever risky work is being performed, but Assemblymember Luz Rivas (D-North Hollywood) argued that banning “dry cutting” in state law would strengthen the rule.
Working in this industry should not be “a death sentence,” said Rivas, who introduced the bill.
The state bill would also require Cal/OSHA to start publicly reporting on its website on any orders prohibiting activities at stonecutting shops in the previous year, as well as mandate reports to lawmakers about which parts of the state have the highest numbers of violations and how many licenses have been issued.
The legislation was sponsored by the State Building and Construction Trades Council and is also backed by the American Lung Assn. in California and the Western Occupational & Environmental Medical Assn.
The hope is that as many stonecutting businesses step forward and get licensed, Cal/OSHA “may be able to shine a light on the parts of the industry they know about that haven’t registered” and “target their resources,” said Jeremy Smith, chief of staff for the State Building and Construction Trades Council.
Business groups had bristled at an earlier version of the bill that imposed wage requirements, which were later stripped from the proposal. The Silica Safety Coalition, an industry group that argues silicosis can be prevented with the use of safety measures, said it was now backing the bill. So is the Natural Stone Institute.
“Careful implementation of the licensure program registration, coupled with strict monitoring and enforcement will be critical to the success of this program,” Hieb said in an email.
Enforcement has been a serious question in the face of high vacancy rates at Cal/OSHA. Even knowing how many stone fabrication shops exist has been a challenge for state regulators: At a UCLA conference in May, a California Department of Public Health official estimated there were more than 900 stonecutting shops across the state. In another presentation that same morning, Hieb said his group pegged the figure around 3,000.
Whenever a state bill involves Cal/OSHA, “that is in the back of everybody’s mind. … Are they going to have the wherewithal to really do what we want this bill to do?” Smith said.
Funding could be a problem: Under the bill, any stonecutting shops seeking a license would need to pay fees — $650 in total for an initial application, $450 for a renewal — which would go into a state fund used to enforce the rules. AB 3043 would also require stonecutting businesses to bear the costs of training workers.
But an Assembly Appropriations Committee analysis concluded that fees and possible penalties under the bill were unlikely to cover the costs of the regulatory structure set out by AB 3043, potentially requiring other funding from the state as it grapples with a yawning deficit. Rivas said she and other lawmakers are still assessing the fees needed to support rigorous enforcement.
Among those who have questioned the bill is Assemblymember Diane Dixon (R-Newport Beach), who voted against AB 3043 in committee. In a statement, Dixon said among her concerns was that “the worker training requirements in this bill are largely duplicative of existing training requirements under Cal/OSHA regulations.” Rivas disputed that argument.
Dr. Robert Blink, past president of the Western Occupational & Environmental Medical Assn., argued that the state needs to impose a fee on every square foot of stone slab that is sold, “producing enough money every year to actually fund the necessary training, education, registration, tracking, enforcement and so forth.”
Scofflaw shops will still try to ignore the rules if AB 3043 passes, he said. “If there is enough energy addressed to reining them in … then it will help a lot,” Blink said.
Rivas said that she would have tried to ban engineered stone — a decision soon to go into effect in Australia — if she thought such a bill would have a chance at passing. In Australia, workplace safety regulators concluded that “the only way to ensure that another generation of Australian workers do not contract silicosis from such work is to prohibit its use” entirely.
Short of such a ban, Rivas said, “we’re trying to create a way that workers will be safe.”
Business
MrBeast company sued over claims of sexual harassment, firing a new mom
A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.
The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.
“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.
Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.
Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.
In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”
When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”
Paez refuted the claim.
“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.
Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”
“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.
When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”
At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”
In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.
In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”
In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.
Mavromatis alleges that she was demoted and then fired.
Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.
Business
Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO
Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.
Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.
The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.
“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.
Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.
Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.
The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.
“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”
Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.
Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.
Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.
“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”
Business
Angry Altadena residents ask officials to halt Edison’s undergrounding work
Eaton wildfire survivors’ anger about Southern California Edison’s burying of electric wires in Altadena boiled over Tuesday with residents calling on government officials to temporarily halt the work.
In a letter to the Los Angeles County Board of Supervisors, more than 120 Altadena residents and the town’s council wrote that they had witnessed “manifest failures” by Edison in recent months as it has been tearing up streets and digging trenches to bury the wires.
The residents cited the unexpected financial cost of the work to homeowners and possible harm to the town’s remaining trees. They also pointed out how the work will leave telecommunication wires above ground on poles.
“The current lack of coordination is compounding the stress of a community still reeling from the Eaton Fire, and risks causing further irreparable harm,” the residents wrote.
The council voted unanimously Tuesday night to send the letter.
Scott Johnson, an Edison spokesman, said Wednesday that the company has been working to address the concerns, including by looking for other sources of funds to help pay for the homeowners’ costs.
“We recognize this community has already faced a number of challenges,” he said.
Johnson said the company will allow homeowners to keep existing overhead lines connecting their homes to the grid if they are worried about the cost.
Edison’s crews, Johnson said, have also been trained to use equipment that avoids roots and preserves the health of trees.
The utility has said that burying the wires as the town rebuilds thousands of homes destroyed in the fire will make the electrical grid safer and more reliable.
But anger has grown as work crews have shown up unexpectedly and residents learned they’re on the hook to pay tens of thousands of dollars to connect their homes to the buried lines.
Residents have also found the crews digging under the town’s oak and pine trees that survived last year’s fire. Arborists say the trenches could destroy the roots of some of the last remaining trees and kill them.
Amy Bodek, the county’s regional planning director, recently warned Edison that a government ordinance protects oak trees and that “utility trenching is not exempt from these requirements.”
Residents have also pointed out that in much of Altadena, the telecom companies, including Spectrum and AT&T, have not agreed to bury their wires in Edison’s trenches. That means the telecom wires will remain on poles above ground, which residents say is visually unappealing.
“While our community supports the long-term benefits of moving utilities underground, the current execution by SCE is placing undue financial and planning burdens on homeowners, causing irreparable harm to our heritage tree canopy, and proceeding without adequate local oversight,” the residents wrote.
They want the project halted until the problems are addressed.
Edison announced last year that it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation.
The work — which costs an estimated $4 million per mile — will earn the utility millions of dollars in profits as its electric customers pay for it over the next decades.
Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom last year that state utility rules would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. Pizarro estimated it would cost $8,000 to $10,000 for each home.
But some residents, who need to dig long trenches, say it will cost them much more.
“We are rebuilding and with the insurance shortfall, our finances are stretched already,” Marilyn Chong, an Altadena resident, wrote in a comment attached to the letter. “Incurring the additional burden of financing SCE’s infrastructure is not something we can or should have to do.”
Other fire survivors complained of Edison’s lack of planning and coordination with residents.
“I’ve started rebuilding, and apparently there won’t be underground power lines for me to connect with in time when my house will be done,” wrote Gail Murphy. “So apparently I’m supposed to be using a generator, and for how long!?”
Johnson said the company has set up a phone line for people with concerns or questions. That line — 1-800-250-7339 — is answered Monday through Saturday, he said.
Residents can also go to Edison’s office in Altadena at 2680 Fair Oaks Avenue. The office is open Monday to Friday from 8 to 4:30.
It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried.
The blaze ignited under Edison’s towering transmission lines that run through Eaton Canyon. Those lines carry bulk power through the company’s territory. In Altadena, Edison is burying the smaller distribution lines, which carry power to homes.
The government investigation into the cause of the fire has not yet been released. Pizarro has said that a leading theory is that a century-old transmission line, which had not carried power for 50 years, somehow re-energized to spark the blaze.
The fire killed at least 19 people and destroyed more than 9,400 homes and other structures.
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