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One of California’s first labor fights over AI is playing out at Kaiser

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One of California’s first labor fights over AI is playing out at Kaiser

Workers of one of the most powerful unions in California are forming an early front in the battle against artificial intelligence, warning it could take jobs and harm people’s health.

As part of their negotiations with their employer, Kaiser Permanente workers have been pushing back against the giant healthcare provider’s use of AI. They are building demands around the issue and others, using picket lines and hunger strikes to help persuade Kaiser to use the powerful technology responsibly.

Kaiser says AI could save employees from tedious, time-consuming tasks such as taking notes and paperwork. Workers say that could be the first step down a slippery slope that leads to layoffs and damage to patient health.

“They’re sort of painting a map that would reduce their need for human workers and human clinicians,” said Ilana Marcucci-Morris, a licensed clinical social worker and part of the bargaining team for the National Union of Healthcare Workers, which is fighting for more protections against AI

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The 42-year-old Oakland-based therapist says she knows technology can be useful but warns that the consequences for patients have been “grave” when AI makes mistakes.

Kaiser says AI can help physicians and employees focus on serving members and patients.

“AI does not replace human assessment and care,” Kaiser spokesperson Candice Lee said in an email. “Artificial intelligence holds significant potential to benefit healthcare by supporting better diagnostics, enhancing patient-clinician relationships, optimizing clinicians’ time, and ensuring fairness in care experiences and health outcomes by addressing individual needs.”

AI fears are shaking up industries across the country.

Medical administrative assistants are among the most exposed to AI, according to a recent study by Brookings and the Centre for the Governance of AI. The assistants do the type of work that AI is getting better at. Meanwhile, they are less likely to have the skills or support needed to transition to new jobs, the study said.

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There are millions of other jobs that are among the most vulnerable to AI, such as office clerks, insurance sales agents and translators, according to the research released last month.

In California, labor unions this week urged Gov. Gavin Newsom and lawmakers to pass more legislation to protect workers from AI. The California Federation of Labor Unions has sponsored a package of bills to address AI’s risks, including job loss and surveillance.

The technology “threatens to eviscerate workers’ rights and cause widespread job loss,” the group said in a joint letter with AFL-CIO leaders in different states.

Kaiser Permanente is California’s largest private employer, with close to 19,000 physicians and more than 180,000 employees . It has a major presence in Washington, Colorado, Georgia, Hawaii and other states.

The National Union of Healthcare Workers, which represents Kaiser employees, has been among the earliest to recognize and respond to the encroachment of AI into the workplace. As it has negotiated for better pay and working conditions, the use of AI has also become an important new point of discussion between workers and management.

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Kaiser already uses AI software to transcribe conversations and take notes between healthcare workers and patients, but therapists have privacy concerns about recording highly sensitive remarks. The company also uses AI to predict when hospitalized patients might become more ill. It offers mental health apps for enrollees, including at least one with an AI chatbot.

Last year, Kaiser mental health workers held a hunger strike in Los Angeles to demand the healthcare provider improve its mental health services and patient care.

The union ratified a new contract covering 2,400 mental health and addiction medicine employees in Southern California last year, but negotiations continue for Marcucci-Morris and other Northern California mental health workers. They want Kaiser to pledge that AI will be used only to assist, but not replace, workers.

Kaiser said it’s still bargaining with the union.

“We don’t know what the future holds, but our proposal would commit us to bargain if there are changes to working conditions due to any new AI technologies,” Lee said.

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Healthcare providers have also faced lawsuits over the use of AI tools to record conversations between doctors and patients. A November lawsuit, filed in San Diego County Superior Court, alleged Sharp HealthCare used an AI note-taking software called Abridge to illegally record doctor-patient conversations without consent.

Sharp HealthCare said it protects patients’ privacy and does not use AI tools during therapy sessions.

Some Kaiser doctors and clinicians, including therapists, use Abridge to take notes during patient visits. Kaiser Permanente Ventures, its venture capital arm, has invested in Abridge.

The healthcare provider said, “Investment decisions are distinctly separate from other decisions made by Kaiser Permanente.”

Close to half of Kaiser behavioral health professionals in Northern California said they are uncomfortable with the introduction of AI tools, including Abridge, in their clinical practice, according to their union.

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The provider said that its workers review the AI-generated notes for accuracy and get patient consent, and that the recordings and transcripts are encrypted. Data are “stored and processed in approved, compliant environments for up to 14 days before becoming permanently deleted.”

Lawmakers and mental health professionals are exploring other ways to restrict the use of AI in mental healthcare.

The California Psychological Assn. is trying to push through legislation to protect patients from AI. It joined others to back a bill requiring clear, written consent before a client’s therapy session is recorded or transcribed.

The bill also prohibits individuals or companies, including those using AI, from offering therapy in California without a licensed professional.

State Sen. Steve Padilla (D-Chula Vista), who introduced the bill, said there need to be more rules around the use of AI.

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“This technology is powerful. It’s ubiquitous. It’s evolving quickly,” he said. “That means you have a limited window to make sure we get in there and put the right guardrails in place.”

Dr. John Torous, director of digital psychiatry at Beth Israel Deaconess Medical Center, said that people are using AI chatbots for advice on how to approach difficult conversations, not necessarily to replace therapy, but that more research is still needed.

He’s working with the National Alliance on Mental Illness to develop benchmarks so people understand how different AI tools respond to mental health.

Healthcare workers say they are worried about what they are already seeing can happen when people struggling with mental health issues interact too much with AI chatbots.

AI chatbots such as OpenAI’s ChatGPT aren’t licensed or designed to be therapists and can’t replace professional mental healthcare. Still, some teenagers and adults have been turning to chatbots to share their personal struggles. People have long been using Google to deal with physical and mental health issues, but AI can seem more powerful because it delivers what looks like a diagnosis and a solution with confidence in a conversation.

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Parents whose children died by suicide after talking to chatbots have sued California AI companies Character.AI and OpenAI, alleging the platforms provided content that harmed the mental health of young people and discussed suicide methods.

“They are not trained to respond as a human would respond,” said Dr. Dustin Weissman, president of the California Psychological Assn. “A lot of those nuances can fall through the cracks, and because of that, it could lead to catastrophic outcomes.”

To be sure, some users are finding value and even what feels like companionship in conversations with chatbots about their mental health and other issues.

Indeed, some say the AI bots have given them easier access to mental health tips and help them work through thoughts and feelings in a conversational style that might otherwise require an appointment with a therapist and hundreds of dollars.

Roughly 12% of adults are likely to use AI chatbots for mental healthcare in the next six months and 1% already do, according to a NAMI/Ipsos survey conducted in November.

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But for mental health workers like Marcucci-Morris, AI by itself is not enough.

“AI is not the savior,” she said.

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iPic movie theater chain files for bankruptcy

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iPic movie theater chain files for bankruptcy

The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.

The Boca Raton, Fla.-based company has 13 locations across the U.S., including in Pasadena and Westwood, according to a Feb. 25 filing in U.S. Bankruptcy Court in the Southern District of Florida, West Palm Beach division.

As part of the bankruptcy process, the Pasadena and Westwood theaters will be permanently closed, according to WARN Act notices filed with the state of California’s Employment Development Department.

The company came to its conclusion after “exploring a range of possible alternatives,” iPic Chief Executive Patrick Quinn said in a statement.

“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” he said.

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The company will keep its current management to maintain day-to-day operations while it goes through the bankruptcy process, iPic said in the statement. The last day of employment for workers in its Pasadena and Westwood locations is April 28, according to a state WARN Act notice. The chain has 1,300 full- and part-time employees, with 193 workers in California.

The theatrical business, including the exhibition industry, still has not recovered from the pandemic’s effect on consumer behavior. Last year, overall box office revenue in the U.S. and Canada totaled about $8.8 billion, up just 1.6% compared with 2024. Even more troubling is that industry revenue in 2025 was down 22.1% compared with pre-pandemic 2019’s totals.

IPic noted those trends in its bankruptcy filing, describing the changes in consumer behavior as “lasting” and blaming the rise of streaming for “fundamentally” altering the movie theater business.

“These industry shifts have directly reduced box office revenues and related ancillary revenues, including food and beverage sales,” the company stated in its bankruptcy filing.

IPic also attributed its decision to rising rents and labor costs.

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The company estimated it owed about $141,000 in taxes and about $2.7 million in total unsecured claims. The company’s assets were valued at about $155.3 million, the majority of which coming from theater equipment and furniture. Its liabilities totaled $113.9 million.

The chain had previously filed for bankruptcy protection in 2019.

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Startup Varda Space Industries snags former Mattel plant in El Segundo

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Startup Varda Space Industries snags former Mattel plant in El Segundo

In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.

The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.

Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.

Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.

Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.

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(Varda Space Industries)

Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.

Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.

Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.

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Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.

It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.

Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.

For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.

The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.

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“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.

As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.

Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.

Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.

Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.

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In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.

“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.

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How Iran War Is Threatening Global Oil and Gas Supplies

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How Iran War Is Threatening Global Oil and Gas Supplies

Ships near the Strait of Hormuz before and after attacks began

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Note: Times shown are in Iran Standard Time. Some ships in the region transmit false positions and others sometimes stop broadcasting their locations, and may not be reflected in the animation. Ships with sparse location data are shown in a lighter shade. Source: Kpler and Spire.

Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.

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On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.

“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”

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Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.

International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.

A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.

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Where ships and energy facilities have been damaged

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Note: Damage as of 2 p.m. Eastern time Tuesday. Source: Kpler, Kuwait National Petroleum Company, Saudi Arabian Ministry of Energy, Planet Labs, QatarEnergy, United Kingdom Maritime Trade Operations and Vanguard Tech.

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A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.

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Facilities at Ras Tanura oil refinery in Saudi Arabia were on fire on Monday after two Iranian drones were intercepted, according to Saudi Arabia’s Ministry of Energy, causing fragments to fall. Vantor

The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.

Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.

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On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.

In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.

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Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.

The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.

The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.

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Where tankers moving through the Strait have traveled

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Note: Tanker paths are since Jan. 1 and include all tankers and gas carriers. Source: Kpler and Spire.

In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.

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Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.

Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.

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