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L.A. County Fed joins labor groups calling for cease-fire in Gaza

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L.A. County Fed joins labor groups calling for cease-fire in Gaza

The Los Angeles County Federation of Labor has joined the growing ranks of labor groups calling for a cease-fire in the Israel-Hamas war following pressure from its rank-and-file members and staff of local Southern California unions.

“The death toll in Gaza has already been unbearable, and it threatens to spiral exponentially if the course of the war is not altered,” the federation said in a recent statement. “We cannot bomb our way to peace.”

The statement by the powerful Southern California labor group, which represents more than 300 local unions and other labor groups, reflects a shift among prominent American unions that have shown more willingness in recent months to speak out about the war.

Like the U.S. government, many major unions have long backed Israel and have been largely supportive since it declared war after Hamas militants attacked on Oct.7, killing about 1,200 people, most of them civilians, and taking more than 240 others as hostages.

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Israel’s bombardment and ground attacks have killed 33,000 Palestinians, around two-thirds of them women and children, according to Palestinian health officials. International aid officials say catastrophic hunger has gripped about one-third of Gaza’s population.

As the humanitarian crisis has deepened, labor leaders and politicians, including President Biden, have faced more pressure from activists to call for a cease-fire.

The United Auto Workers in December became among the first major union to do so, with others following suit.

In February, the L.A. Fed’s parent organization, the AFL-CIO, issued its own statement calling for a “negotiated cease-fire in Gaza” while condemning the attacks on Oct. 7 and calling for “the immediate release of all hostages and provision of desperately needed shelter, food, medicine and other humanitarian assistance to Gazans.”

In November, the 42-member executive board of the L.A. Fed declined to allow discussion among its delegates of a statement calling for a cease-fire, sources close to the union said.

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The board changed course in March, approving a cease-fire proposal brought by SEIU United Healthcare Workers West that was supported by the organization’s hundreds of delegates.

“We stand in solidarity with all workers fighting for justice and peace and join our union siblings worldwide in calling on President Joe Biden and Congress to push for an immediate cease-fire and end to the siege of Gaza,” the federation said.

Repeated attacks by Israel’s military on healthcare facilities, killing Palestinian doctors, nurses and other healthcare staff, was the impetus of the resolution, said Maky Peters, a regional political organizer at SEIU-UHW who helped to draft the statement.

“What moves the needle is the conditions,” Peters said. “There was a movement of workers that created an atmosphere that made it impossible for the organization representing the voice of workers in the largest county in the nation to ignore.”

Kristal Romero, a spokesperson for the L.A. Fed, said she could not comment on the board’s decisions, adding that meetings are confidential.

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“Numerous resolutions on any number of subjects outside of Gaza and a cease-fire are introduced to these bodies, and a lot of times just get voted up or down,” she said. “There is no one reason as to why it got voted through this time, it’s luck of the draw.”

Cliff Smith, business manager of the United Union of Roofers, Waterproofers and Allied Workers Local 36, said action by leaders at the AFL-CIO and by the L.A. Fed has overdue.

“Due to the complete destruction of [Gaza’s] infrastructure and attacks on their hospitals, it’s an absolute atrocity and an embarrassment to the AFL-CIO for not having condemned this immediately,” Smith said.

Major Hollywood unions, including SAG-AFTRA, issued statements in the fall condemning the Oct. 7 attacks by Hamas, but have remained silent on the subject of a cease-fire, reflecting divisions among members over how to respond to the war.

Members of SAG-AFTRA last month joined more than 1,000 protesters who converged on Hollywood, blocking traffic ahead of the Academy Awards ceremony to protest the war.

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“We are a union of storytellers and artists, it is amazing that we aren’t able to recognize the shared humanity of what’s going on,” said Sunil Malhotra, a voice actor who attended the rally. “I think it’s long past time to find moral courage and clarity and step up.”

“The current conflict in the Middle East is an important and sensitive issue to many of our members and SAG-AFTRA has received several requests for public statements. Those requests are currently under review by union leadership,” SAG-AFTRA spokesperson Pamela Greenwalt said in a statement.

Steve Smith, a spokesperson for the AFL-CIO, said it takes time for union leaders to consider a range of input before issuing a statement.

“We don’t make unilateral decisions,” he said. “For some folks it might not have happened soon enough; for others, they might have preferred it happened later — but that’s union democracy.”

In February, the Animation Guild — a local of the International Alliance of Theatrical Stage Employees — reportedly emerged as the first Hollywood union to publicly call for a cease-fire, citing similar stances taken by other labor organizations.

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Times staff writer Christi Carras contributed to this report.

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Pro-Palestinian activists protest at Google developer conference amid Israel-Hamas war

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Pro-Palestinian activists protest at Google developer conference amid Israel-Hamas war

Dozens of protesters blocked the entrance of Google’s developer conference in Mountain View, Calif., for roughly 90 minutes on Tuesday, demanding that the tech giant drop its work with the Israeli government amid the country’s war with Hamas in the Gaza Strip.

The protest group, which accuses Israel of committing genocide against Palestinians in Gaza, held two events on Tuesday that it said involved hundreds of participants.

A group chanted “Shame on Google” and “Google Cloud rains blood” in the front of the entrance to the conference at Shoreline Amphitheatre, where the tech giant was expected to announce updates to business including its Android and Gemini AI systems. Separately, the protesters held a rally at a nearby park.

The protesters, who call themselves No Tech for Genocide, have been demanding that Google end its cloud computing contract with the Israeli government, known as Project Nimbus.

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The latest Israel-Hamas war began when Hamas militants attacked southern Israel on Oct. 7, killing about 1,200 people and taking an additional 250 hostage, according to the Israeli government. Palestinian militants still hold about 100 captives, and Israel’s military has killed more than 35,000 people in Gaza, according to Gaza’s Health Ministry, which doesn’t distinguish between civilians and combatants.

Protesters at the Google event said they believe the company’s technology is being used by the Israeli military for surveillance of people in Gaza through facial recognition, leading to the arrest and detention of Palestinians.

Google did not immediately respond to a request for comment.

The company has said that its technology is used to support numerous governments around the world, including Israel’s, and that the Nimbus contract is for work running on its commercial cloud network, with the Israeli government ministries agreeing to comply with Google’s terms of service and acceptable use policy.

“This work is not directed at highly sensitive, classified, or military workloads relevant to weapons or intelligence services,” Google said in an April statement.

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One of the protesters at the Tuesday conference was Ariel Koren, a former Google employee who alleges the company retaliated against her in 2021 after she raised concerns about the contract. Google said at the time that it had investigated the case and found no evidence of retaliation.

“We want to make sure that every single person who comes here and who might think that today’s a day about celebrating technological advancements — every single one of those people needs to understand that the reality is much darker than what Google has painted,” Koren said.

Organizers estimated that 50 people participated in the demonstration in front of the conference. The rally at the park drew a bigger crowd.

One of the participants objected to Google holding its conference the day before Palestinians commemorate 76 years since their mass expulsion from what is now Israel. Palestinians refer to their displacement during the 1948 Israeli-Arab war as the Nakba, which is Arabic for catastrophe.

The protest in front of the Google I/O conference began at around 9:30 a.m., with protesters moving toward a bag checkpoint. Conference attendees had been asked to take out their laptops and have their bags searched.

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The event’s security closed the entrance as protesters moved to stand in front, leaving a large line of attendees who were later directed to another area to proceed to the conference. A line of protesters held a red sign that proclaimed “Google Stop Fueling Genocide.” The demonstration ended at about 11 a.m.

Google’s developer conference draws thousands of people each year, many of whom are developers eager to learn about the company’s latest technology.

After witnessing the protest, several attendees said they planned to do more research on Project Nimbus.

“I feel that it is worth a shot to listen to others when they have a point of view,” said Andres Haro, a 30-year-old software security engineer from Utah, as he waited in a long redirected line into Google I/O’s entrance.

The protest comes after more than 50 Google employees were fired following sit-ins and protests that took place at Google office locations last month protesting Project Nimbus. Google said it terminated those workers after an investigation determined they were involved in disruptive activity that violated its policies governing employee conduct.

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A spokesperson for the group behind the sit-ins, called No Tech for Apartheid, said they were not involved with Tuesday’s protest.

“We’re asking more questions about what role we and our employers are playing in the world,” said Roni Zeiger, a product developer who participated in the rally on Tuesday at Charleston Park, near the Google event. “World events have continued to evolve and … people, including employees, are asking harder questions and wanting to work at places that are consistent with their values.”

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Red Lobster offered customers all-you-can-eat shrimp. That was a mistake

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Red Lobster offered customers all-you-can-eat shrimp.  That was a mistake

Red Lobster promised customers an endless supply of shrimp for $20 — a gamble the struggling restaurant chain hoped would help pull it out of its pandemic doldrums.

But Americans, and their appetites, had other plans.

The beloved yet beleaguered pillar of casual dining abruptly shuttered dozens of locations this week, heightening speculation that the chain is careening toward bankruptcy.

Although its dire financial situation isn’t the result of a single misstep, executives at the company that owns a large stake in the chain, as well as industry experts, said that miscalculations over the popularity of the all-you-can-eat shrimp special accelerated the company’s downward spiral.

The closures, including at least five locations in California, were announced in a LinkedIn post Monday by Neal Sherman, the chief executive of a liquidation firm called TAGeX Brands, which is auctioning off surplus restaurant equipment from the shuttered locations.

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Representatives for Red Lobster did not respond to a request for comment about the closures, which were listed on its website as temporary, or whether it planned to file for bankruptcy.

But company executives have been vocal about the misguided gamble with shrimp and how they misjudged just how hungry Americans would be for a deal on the crustaceans.

In an effort to boost foot traffic and ease the sales slump that swept through the restaurant industry during the pandemic, Red Lobster executives last year decided to relaunch a popular marketing ploy from years past to lure customers: For $20 they could eat as much shrimp as they wanted.

Eager for a deal during an era of stubbornly high inflation, many consumers eagerly embraced the offer as a challenge. People took to TikTok to brag about how many of the pink morsels they could put down in a single sitting — one woman boasted she’d consumed 108 shrimp over the course of a 4-hour meal.

“In the current environment, consumers are looking to find value and stretch budgets where they can,” said Jim Salera, a research analyst at Stephens, who tracks the restaurant industry. “At $20, it’s very possible for a consumer to eat well past the very thin profit margin.”

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During a presentation about sales from the third quarter of last year, Ludovic Garnier, the chief financial officer of Thai Union Group, a seafood conglomerate that has been Red Lobster’s largest shareholder since 2020, cited the endless shrimp deal as a key reason the chain had an operating loss of about $11 million during that time frame.

“The price point was $20,” Garnier said.

He paused.

“Twenty dollars,” he repeated with a tinge of regret in his voice. “And you can eat as much as you want.”

Although the promotion boosted traffic by a few percentage points, Garnier said, the number of people taking advantage of the all-you-can-eat offer far exceeded the company’s projections. In response, they adjusted the price to $22 and then $25.

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All-you-can-eat offers can be effective marketing strategies to get people in the door in the competitive world of casual dining — Applebee’s offers $1 margaritas dubbed the Dollarita, buffet chains such as Golden Corral and Sizzler promise abundance at a flat rate, and Olive Garden, one of Red Lobster’s main competitors, has long lured customers with unlimited salad and bread sticks.

But Red Lobster made a few crucial missteps with the shrimp deal, said Eric Chiang, an economics professor at University of Nevada, Las Vegas, and a self-proclaimed buffet aficionado.

The company not only started with a low price point, but offered a prized and pricey menu item that can serve as an entire meal — not many customers at Olive Garden, he noted, are going to stock up on bread sticks and salad alone.

“Most people will also order the Taste of Italy,” he said, “or something that gives you meat and pasta.”

Chiang said the most effective loss leaders, a term for products that aren’t profitable but bring in enough new customers or lead to the sale of enough other items to make the offer worthwhile, use cheap ingredients. A good example is 7-Eleven’s Free Slurpee Day, he said, as the company gives away about 15 cents of ice and syrup to customers who then pay to fill up their gas tanks.

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Consumers are especially drawn to all-you-can-eat deals and buffets during tighter economic times, Chiang said.

“This is a story of inflation,” he said. “All you can eat for $15? That gives customers a sense of control. Like we’re not being gouged, not being nickel and dimed for every dessert.”

Red Lobster, it turns out, has been in trouble for a while.

In 2003, the chain, which at the time was owned by Darden Restaurants, the company that owns Olive Garden, offered a similarly disastrous all-you-eat crab special for around $23.

So many people came back for seconds, thirds and even fourths, executives said at the time, that it cut into profit margins. Before long, the company’s then-president stepped down.

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In 2014, after a period of disappointing sales and less foot traffic, Darden sold Red Lobster to San Francisco private equity firm Golden Gate Capital for more than $2 billion, a stake that was eventually taken over by Thai Union.

Despite the turmoil, the company, which until this week touted about 700 locations, remained a brand so beloved that it earned a reference in Beyonce’s song “Formation,” in which she describes post-coital trips to Red Lobster.

After the song’s release, the company said it saw a 33% jump in sales, but that glow was short lived and had faded long before the ill-fated shrimp deal was brought back last year.

“You have to be pretty close to the edge for one promotion to tip you over the edge,” said Sara Senatore, a senior analyst at Bank of America, who follows the restaurant industry.

In January, Thai Union Group — citing a combination of financial struggles it pinned to the pandemic, high labor and material costs and the oft-cited buzzword of industry “headwinds” — announced plans to dump its stake in the company, which was founded in 1968 in Lakeland, Fla. The closures this week hit at least five California locations — Redding, Rohnert Park, Sacramento, San Diego and Torrance — according to the website of the liquidation company, which posted images of available items, including a lobster tank, seating booths, refrigerators and a coffee maker.

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During a presentation to investors in February, Thiraphong Chansiri, the chief executive of Thai Union, expressed frustration with the situation surrounding Red Lobster, saying it had left a “big scar” on him.

“Other people stop eating beef,” he said. “I’m going to stop eating lobster.”

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Column: Exxon Mobil is suing its shareholders to silence them about global warming

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Column: Exxon Mobil is suing its shareholders to silence them about global warming

You wouldn’t think that Exxon Mobil has to worry much about being harried by a couple of shareholder groups owning a few thousand dollars worth of shares between them — not with its $529-billion market value and its stature as the world’s biggest oil company.

But then you might not have factored in the company’s stature as the world’s biggest corporate bully.

In February, Exxon Mobil sued the U.S. investment firm Arjuna Capital and Netherlands-based green shareholder firm Follow This to keep a shareholder resolution they sponsored from appearing on the agenda of its May 29 annual meeting. The resolution urged Exxon Mobil to work harder to reduce the greenhouse gas emissions of its products.

Exxon has more resources than just about anybody; ‘overkill’ doesn’t begin to describe the imbalance of power.

— Shareholder advocate Nell Minow

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The company’s legal threat worked: Days after the lawsuit was filed, the shareholder groups, weighing their relative strength against an oil behemoth, withdrew the proposal and pledged not to refile it in the future.

Yet even though the proposal no longer exists, the company is still pursuing the lawsuit, running up its own and its adversaries’ legal bills. Its goal isn’t hard to fathom.

“What purpose does this have other than sending a chill down the spines of other investors to keep them from speaking up and filing resolutions?” asks Illinois State Treasurer Michael W. Frerichs, who oversees public investment portfolios, including the state’s retirement and college savings funds, worth more than $35 billion.

In response to the lawsuit, Frerichs has urged Exxon Mobil shareholders to vote against the reelection to the board of Chairman and Chief Executive Darren W. Woods and lead independent director Joseph L. Hooley at the annual meeting.

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He’s not alone. The $496-billion California Public Employees’ Retirement System, or CalPERS, the nation’s largest public pension fund, is considering a vote against Woods, according to the fund’s chief operating investment officer, Michael Cohen.

“Exxon has gone well beyond any other company that we’re aware of in terms of suing shareholders for trying to bring forward a proposal,” Cohen told the Financial Times. “There doesn’t seem to be anything other than an agenda of sending a message of shutting down shareholders’ ability to speak their mind.”

California Treasurer Fiona Ma, a CalPERS board member, backs a vote against Woods. “As the largest public pension fund in the country, we have a responsibility to lead on issues that threaten to undermine shareowners,” she says.

The proxy advisory firm Glass Lewis & Co., which helps institutional investors decide how to vote on shareholder proposals and board elections, has counseled a vote against Hooley, citing Exxon Mobil’s “unusual and aggressive tactics” in fighting activist investors.

Exxon Mobil’s action against Arjuna and Follow This opens a new chapter in the long battle between corporate managements and shareholder gadflies.

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Fossil fuel companies have been especially touchy about shareholder resolutions calling on them to take firmer action on global warming and to be more transparent about the effects their products have on climate.

In part that may be the result of some significant victories by activist shareholders. In 2021, nearly 61% of Chevron shareholders voted for the company to “substantially” reduce its greenhouse gas emissions — a shockingly large majority for a shareholder vote on any issue. That same year, the activist hedge fund Engine No. 1 led a campaign that unseated three Exxon Mobil board members and replaced them with directors more sensitive to climate risk.

Exxon Mobil also subjected the San Diego County community of Imperial Beach to a campaign of legal harassment over the city’s participation in a lawsuit aimed at forcing the company and others in the oil industry to pay compensation for the cost of global warming, which stems from the burning of the companies’ products.

Even in that context, Exxon Mobil’s campaign against Arjuna and Follow This represents a high-water mark in corporate cynicism.

The lawsuit asserts that the investment funds’ proposed resolution violated standards set forth by the Securities and Exchange Commission governing the propriety of such resolutions — it was related to “the company’s ordinary business operations” and closely resembled resolutions on similar topics that had failed to exceed threshold votes at the company’s 2022 and 2023 annual meetings. Both standards allow a company to block a resolution from the meeting agenda, or proxy.

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That may be so, but the conventional practice is for managements to seek approval from the SEC to exclude such resolutions through the issuance of what’s known as an agency “no action” letter.

Exxon Mobil hasn’t taken that step. Instead, it filed its lawsuit in federal court in Forth Worth, where the case was certain to be heard by one of the only two judges in that courthouse, both conservatives appointed by Republican presidents — a crystalline example of partisan “judge shopping.” The case came before Trump appointee Mark T. Pittman, who has allowed it to proceed.

The company hasn’t said why it followed that course. “The U.S. system for shareholder access is the best in the world,” company spokeswoman Elise Otten told me by email. “To make sure it stays that way, the rules must be enforced or the abuse by activists masquerading as shareholders will continue threatening the system.”

In practice, however, the SEC has been quite strict about requiring that shareholder proposals meet its standards. “There can only be one reason” for the lawsuit, says shareholder advocate Nell Minow — “it’s to crush the shareholder. Exxon has more resources than just about anybody; ‘overkill’ doesn’t begin to describe the imbalance of power.”

The company accused Arjuna and Follow This of aiming not “to improve ExxonMobil’s business performance or increase shareholder value,” but of pursuing the goal of “disrupting ExxonMobil’s investments and development of fossil fuel assets and causing ExxonMobil to change its business model, regardless of the benefits, costs, or the world’s needs.”

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The company maintained that the shareholder groups aimed to “force ExxonMobil to change the nature of its ordinary business or to go out of business entirely.”

That’s flatly untrue. The resolution observed that the company’s “cost of capital may substantially increase if it fails to control transition risks by significantly reducing absolute emissions.”

That judgment is shared by many institutional investors and government regulators, and points to a path for preserving Exxon Mobil’s business prospects, not destroying them.

In any case, what Exxon Mobil failed to note is that shareholder resolutions are always advisory — they can’t require management to do anything.

In its lawsuit, the company whined about the sheer burden of handling an increase in shareholder resolutions, especially those on fraught topics such as the environment and social issues. Using what it described as an SEC estimate that it costs corporations $150,000 to deal with every submitted resolution, its annual meeting statement calculated that it has spent $21 million to manage 140 submitted resolutions.

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A couple of points about that. First, the SEC didn’t estimate that every resolution costs $150,000 to manage. The SEC actually cites a range of $20,000 to $150,000 each.

Second, a quick look at the company’s financial statements gives the lie to its claim that shareholder resolutions are some sort of cataclysmic burden. Its statistics applied to the entire 10-year period from 2014 through 2023, not just a single year.

Over that decade, Exxon Mobil reported total profits of $204.3 billion. In other words, processing those 140 proposals — using the SEC’s highest estimate to arrive at $21 million — cost Exxon Mobil one one-hundredth of a percent of its profits, at most, to deal with shareholder proposals.

And it’s not as if those proposals clog up the annual meeting proxy — for this year’s meeting, only four proposals will be submitted to shareholder votes. Management opposes all four, big surprise.

As for whether companies such as Exxon Mobil have better uses for their money, the proxy statement doesn’t make a great case for every expenditure.

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Last year, for instance, the company paid nearly $1.5 million in relocation expenses for its top executives, including about $500,000 for Woods, in connection with the move of its headquarters from the Dallas suburbs to the Houston suburbs, about a three-hour drive away. Over the last three years, Woods collected more than $81 million in compensation, so one can see why moving house would leave him strapped.

“As a shareholder, the one thing you ask for is to look at every expenditure in terms of its return on investment,” Minow told me. “It’s unfathomable that the return on investment of this lawsuit is in any way beneficial to the company.” She’s right: It’s certain that Exxon’s legal fees on this case already exceed the putative $150,000 expense it incurred dealing with the withdrawn proposal.

Exxon Mobil’s punitive lawsuit only hints at the lengths that the fossil fuel industry will go to preserve a business model facing an inexorable decline. The companies haven’t been shy about enlisting politicians to rid them of their turbulent shareholders (to paraphrase the medieval King Henry II).

In February, Sen. Bill Hagerty (R-Tenn.) introduced a measure dubbed the “Rejecting Extremist Shareholder Proposals that Inhibit and Thwart Enterprise for Businesses Act, or “RESPITE.” The act would overturn an SEC rule stating that resolutions dealing with “significant social policy issues” can’t be excluded from the annual proxy under the traditional “ordinary business” limitation.

Don’t expect them to be shy about demanding more latitude from a reelected President Trump. The Washington Post reported last week that Trump pledged to roll back Biden administration environmental policies if the oil executives meeting with him at Mar-a-Lago would raise $1 billion for his campaign. An Exxon Mobil executive was present, the Post reported.

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