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Microsoft Pledges Neutrality in Union Campaigns at Activision

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Microsoft Pledges Neutrality in Union Campaigns at Activision

Microsoft and the Communications Staff of America union introduced an settlement on Monday that will make it simpler for workers to unionize on the online game maker Activision Blizzard, which Microsoft is buying for $70 billion.

Underneath the deal, which seems to be the primary of its variety within the expertise business, Microsoft agreed to stay impartial if any of Activision’s eligible U.S. workers need to unionize, and workers would now not must petition the Nationwide Labor Relations Board for an election. The corporate has virtually 7,000 workers in america, most of whom will probably be eligible to unionize underneath the association.

A bunch of practically 30 workers at certainly one of Activision’s studios voted to unionize via an N.L.R.B. election in Could regardless of Activision’s opposition to holding the election. However finishing such a course of may be time consuming, with unions and employers generally spending months and even years litigating the outcomes.

By way of the settlement, staff could have entry to an expedited course of for unionizing, overseen by a impartial third occasion, through which they are going to point out their assist for a union both by signing playing cards or confidentially via an digital platform.

“This course of does provides us and Microsoft a method to do that quote unquote election with out spending the time, the trouble and the controversy that goes together with an N.L.R.B. election,” Chris Shelton, the president of the Communications Staff union, mentioned in an interview.

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The union mentioned that the neutrality settlement resolved the antitrust considerations it had with the acquisition, and that it now supported the deal, which Microsoft has mentioned will shut by the top of subsequent June.

Mr. Shelton and Brad Smith, Microsoft’s president, steered that the deal may pave the way in which to wider unionization throughout the corporate and the business. “This can be a nice alternative for us to work with Chris and the C.W.A. and to study and innovate,” Mr. Smith mentioned in an interview. Microsoft mentioned it was ready to “construct on” the deal sooner or later, however didn’t particularly touch upon whether or not it deliberate to increase the phrases to different gaming staff on the firm.

Microsoft indicated that underneath the settlement, it might chorus from an aggressive anti-union marketing campaign if different Activision workers sought to unionize. “In sensible phrases, it signifies that we’re not going to attempt to soar in and put a thumb on the dimensions,” Mr. Smith mentioned within the interview. “We’ll respect the truth that our workers are able to making selections for themselves they usually have a proper to try this.”

Dealing with their very own union campaigns, corporations like Amazon and Starbucks have held frequent obligatory conferences with workers to argue {that a} union may go away them worse off.

The labor board has issued complaints in opposition to Amazon that embrace accusations of threatening staff with a lack of advantages in the event that they unionize, and in opposition to Starbucks over accusations that it fired staff who sought to type a union and successfully promised advantages to staff in the event that they selected to not unionize. Each corporations have denied the accusations. In a current case introduced by the N.L.R.B. in Arizona, a federal choose denied a request for an injunction to reinstate pro-union staff whom the labor board mentioned Starbucks had compelled out illegally.

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The settlement between Microsoft and the union would additionally shield staff’ proper to speak amongst themselves and with union officers a couple of union marketing campaign — one thing many employers search to discourage — and stipulates that disagreements between the corporate and the union will probably be resolved via an “expedited arbitration course of.” N.L.R.B. complaints can take months or years to resolve.

When Microsoft and Activision introduced their blockbuster deal in January, the sport maker was underneath stress because it confronted accusations that senior executives had ignored sexual harassment and discrimination. These considerations spurred organizing amongst Activision workers, together with staff at its Raven Software program studio in Wisconsin, which has developed video games in in style franchises like Name of Obligation.

After a bunch of roughly 30 high quality assurance, or Q.A., staff introduced that they have been looking for to unionize, Activision sought to persuade the federal labor board that their election mustn’t go ahead. The sport staff accused Activision of union-busting ways, like growing the pay of non-Raven Q.A. staff and splitting Q.A. staff up by embedding them throughout the Raven studio.

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Activision maintained that whereas some modifications on this vein had come after the union marketing campaign went public, the broader shift in strategy had already been underway — for instance, its transfer to vary the standing of a whole bunch of momentary and contingent staff to everlasting full-time workers within the fall.

In early March, the union signed a letter asking federal regulators to scrutinize the acquisition. “The potential takeover by Microsoft threatens to additional undermine staff’ rights and suppress wages,” the letter mentioned.

Microsoft has since tried to strike a conciliatory tone. It mentioned it might not cease Activision from voluntarily recognizing the union earlier than a proper election, which Activision didn’t do. After the Raven Q.A. staff voted in late Could to type the primary union at a serious North American sport writer, Phil Spencer, the top of gaming at Microsoft, informed workers that he would acknowledge the Raven union as soon as the deal between the 2 corporations closed, the gaming information web site Kotaku reported, citing a video of an worker city corridor.

Activision mentioned on Friday that it was beginning contract negotiations with the newly unionized Raven staff. “We determined to take this necessary step ahead with our 27 represented workers and C.W.A. to discover their concepts and insights for a way we would higher serve our workers, gamers and different stakeholders,” Bobby Kotick, the corporate’s chief govt, mentioned in a press release.

In a weblog publish this month that appeared to foreshadow the deal, Mr. Smith introduced a set of rules to information Microsoft’s response to labor organizing, a sign that it was taking a extra open strategy throughout the corporate’s companies.

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He wrote that he had noticed Microsoft’s profitable “collaborative experiences with works councils and unions” whereas working in Europe and mentioned that in america the corporate would pursue “collaborative approaches that can make it easier, moderately than harder, for our workers to make knowledgeable selections and to train their authorized proper to decide on whether or not to type or be part of a union.”

Within the interview, Mr. Smith known as the neutrality settlement “our first alternative to place these rules into observe.”

The Communications Staff of America, which represents workers at corporations like AT&T Mobility, Verizon and The New York Occasions, has sought to arrange tech business staff lately. It has begun organizing retail staff at Apple Shops and helped staff at Google type a so-called minority union, which permits them to behave collectively on office points with out having to win a union election.

A couple of dozen retail workers at Google Fiber shops in Kansas Metropolis, Mo., who’re formally employed by a Google contractor, not too long ago voted to hitch the union.

Kellen Browning contributed reporting.

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Cookies, Cocktails and Mushrooms on the Menu as Justices Hear Bank Fraud Case

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Cookies, Cocktails and Mushrooms on the Menu as Justices Hear Bank Fraud Case

In a lively Supreme Court argument on Tuesday that included references to cookies, cocktails and toxic mushrooms, the justices tried to find the line between misleading statements and outright lies in the case of a Chicago politician convicted of making false statements to bank regulators.

The case concerned Patrick Daley Thompson, a former Chicago alderman who is the grandson of one former mayor, Richard J. Daley, and the nephew of another, Richard M. Daley. He conceded that he had misled the regulators but said his statements fell short of the outright falsehoods he said were required to make them criminal.

The justices peppered the lawyers with colorful questions that tried to tease out the difference between false and misleading statements.

Chief Justice John G. Roberts Jr. asked whether a motorist pulled over on suspicion of driving while impaired said something false by stating that he had had one cocktail while omitting that he had also drunk four glasses of wine.

Caroline A. Flynn, a lawyer for the federal government, said that a jury could find the statement to be false because “the officer was asking for a complete account of how much the person had had to drink.”

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Justice Ketanji Brown Jackson asked about a child who admitted to eating three cookies when she had consumed 10.

Ms. Flynn said context mattered.

“If the mom had said, ‘Did you eat all the cookies,’ or ‘how many cookies did you eat,’ and the child says, ‘I ate three cookies’ when she ate 10, that’s a false statement,” Ms. Flynn said. “But, if the mom says, ‘Did you eat any cookies,’ and the child says three, that’s not an understatement in response to a specific numerical inquiry.”

Justice Sonia Sotomayor asked whether it was false to label toxic mushrooms as “a hundred percent natural.” Ms. Flynn did not give a direct response.

The case before the court, Thompson v. United States, No. 23-1095, started when Mr. Thompson took out three loans from Washington Federal Bank for Savings between 2011 and 2014. He used the first, for $110,000, to finance a law firm. He used the next loan, for $20,000, to pay a tax bill. He used the third, for $89,000, to repay a debt to another bank.

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He made a single payment on the loans, for $390 in 2012. The bank, which did not press him for further payments, went under in 2017.

When the Federal Deposit Insurance Corporation and a loan servicer it had hired sought repayment of the loans plus interest, amounting to about $270,000, Mr. Thompson told them he had borrowed $110,000, which was true in a narrow sense but incomplete.

After negotiations, Mr. Thompson in 2018 paid back the principal but not the interest. More than two years later, federal prosecutors charged him with violating a law making it a crime to give “any false statement or report” to influence the F.D.I.C.

He was convicted and ordered to repay the interest, amounting to about $50,000. He served four months in prison.

Chris C. Gair, a lawyer for Mr. Thompson, said his client’s statements were accurate in context, an assertion that met with skepticism. Justice Elena Kagan noted that the jury had found the statements were false and that a ruling in Mr. Thompson’s favor would require a court to rule that no reasonable juror could have come to that conclusion.

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Justices Neil M. Gorsuch and Brett M. Kavanaugh said that issue was not before the court, which had agreed to decide the legal question of whether the federal law, as a general matter, covered misleading statements. Lower courts, they said, could decide whether Mr. Thompson had been properly convicted.

Justice Samuel A. Alito Jr. asked for an example of a misleading statement that was not false. Mr. Gair, who was presenting his first Supreme Court argument, responded by talking about himself.

“If I go back and change my website and say ‘40 years of litigation experience’ and then in bold caps say ‘Supreme Court advocate,’” he said, “that would be, after today, a true statement. It would be misleading to anybody who was thinking about whether to hire me.”

Justice Alito said such a statement was, at most, mildly misleading. But Justice Kagan was impressed.

“Well, it is, though, the humblest answer I’ve ever heard from the Supreme Court podium,” she said, to laughter. “So good show on that one.”

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SEC probes B. Riley loan to founder, deals with franchise group

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SEC probes B. Riley loan to founder, deals with franchise group

B. Riley Financial Inc. received more demands for information from federal regulators about its dealings with now-bankrupt Franchise Group as well as a personal loan for Chairman and co-founder Bryant Riley.

The Los Angeles-based investment firm and Riley each received additional subpoenas in November from the U.S. Securities and Exchange Commission seeking documents and information about Franchise Group, or FRG, the retail company that was once one of its biggest investments before its collapse last year, according to a long-delayed quarterly filing. The agency also wants to know more about Riley’s pledge of B. Riley shares as collateral for a personal loan, the filing shows.

B. Riley previously received SEC subpoenas in July for information about its dealings with ex-FRG chief executive Brian Kahn, part of a long-running probe that has rocked B. Riley and helped push its shares to their lowest in more than a decade. Bryant Riley, who founded the company in 1997 and built it into one of the biggest U.S. investment firms beyond Wall Street, has been forced to sell assets and raise cash to ease creditors’ concerns.

The firm and Riley “are responding to the subpoenas and are fully cooperating with the SEC,” according to the filing. The company said the subpoenas don’t mean the SEC has determined any violations of law have occurred.

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Shares in B. Riley jumped more than 25% in New York trading after the company’s overdue quarterly filing gave investors their first formal look at the firm’s performance in more than half a year. The data included a net loss of more than $435 million for the three months ended June 30. The shares through Monday had plunged more than 80% in the past 12 months, trading for less than $4 each.

B. Riley and Kahn — a longstanding client and friend of Riley’s — teamed up in 2023 to take FRG private in a $2.8-billion deal. The transaction soon came under pressure when Kahn was tagged as an unindicted co-conspirator by authorities in the collapse of an unrelated hedge fund called Prophecy Asset Management, which led to a fraud conviction for one of the fund’s executives.

Kahn has said he didn’t do anything wrong, that he wasn’t aware of any fraud at Prophecy and that he was among those who lost money in the collapse. But federal investigations into his role have spilled over into his dealings with B. Riley and its chairman, who have said internal probes found they “had no involvement with, or knowledge of, any alleged misconduct concerning Mr. Kahn or any of his affiliates.”

FRG filed for Chapter 11 bankruptcy in November, a move that led to hundreds of millions of dollars of losses for B. Riley. The collapse made Riley “personally sick,” he said at the time.

One of the biggest financial problems to arise from the FRG deal was a loan that B. Riley made to Kahn for about $200 million, which was secured against FRG shares. With that company’s collapse into bankruptcy in November wiping out equity holders, the value of the remaining collateral for this debt has now dwindled to only about $2 million, the filing shows.

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Griffin writes for Bloomberg.

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Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging

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Starbucks Reverses Its Open-Door Policy for Bathroom Use and Lounging

Starbucks will require people visiting its coffee shops to buy something in order to stay or to use its bathrooms, the company announced in a letter sent to store managers on Monday.

The new policy, outlined in a Code of Conduct, will be enacted later this month and applies to the company’s cafes, patios and bathrooms.

“Implementing a Coffeehouse Code of Conduct is something most retailers already have and is a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit,” Jaci Anderson, a Starbucks spokeswoman, said in an emailed statement.

Ms. Anderson said that by outlining expectations for customers the company “can create a better environment for everyone.”

The Code of Conduct will be displayed in every store and prohibit behaviors including discrimination, harassment, smoking and panhandling.

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People who violate the rules will be asked to leave the store, and employees may call law enforcement, the policy says.

Before implementation of the new policy begins on Jan. 27, store managers will be given 40 hours to prepare stores and workers, according to the company. There will also be training sessions for staff.

This training time will be used to prepare for other new practices, too, including asking customers if they want their drink to stay or to go and offering unlimited free refills of hot or iced coffee to customers who order a drink to stay.

The changes are part of an attempt by the company to prioritize customers and make the stores more inviting, Sara Trilling, the president of Starbucks North America, said in a letter to store managers.

“We know from customers that access to comfortable seating and a clean, safe environment is critical to the Starbucks experience they love,” she wrote. “We’ve also heard from you, our partners, that there is a need to reset expectations for how our spaces should be used, and who uses them.”

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The changes come as the company responds to declining sales, falling stock prices and grumbling from activist investors. In August, the company appointed a new chief executive, Brian Niccol.

Mr. Niccol outlined changes the company needed to make in a video in October. “We will simplify our overly complex menu, fix our pricing architecture and ensure that every customer feels Starbucks is worth it every single time they visit,” he said.

The new purchase requirement reverses a policy Starbucks instituted in 2018 that said people could use its cafes and bathrooms even if they had not bought something.

The earlier policy was introduced a month after two Black men were arrested in a Philadelphia Starbucks while waiting to meet another man for a business meeting.

Officials said that the men had asked to use the bathroom, but that an employee had refused the request because they had not purchased anything. An employee then called the police, and part of the ensuing encounter was recorded on video and viewed by millions of people online, prompting boycotts and protests.

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In 2022, Howard Schultz, the Starbucks chief executive at the time, said that the company was reconsidering the open-bathroom policy.

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