Connect with us

Business

With Trump vowing deportations, workers in Los Angeles race the clock for a reprieve

Published

on

With Trump vowing deportations, workers in Los Angeles race the clock for a reprieve

A line of immigrant workers formed outside an office building in Koreatown on a recent Friday afternoon.

They followed makeshift signs to a small courtyard, where scores of volunteer lawyers, translators and other staff helped them apply for a little-known federal program that offers an unusual — and probably fleeting — reprieve from deportation.

Under the Deferred Action for Labor Enforcement program, people in the U.S. illegally who work at companies under investigation for workplace violations can receive permission to work in the country for four years. The program, which was started during the Biden administration, is intended to encourage undocumented workers to cooperate with investigations into safety violations, employment abuses and other issues without fear that their immigration status will be used against them.

Earlier registration clinics like the three-day push that the Koreatown Immigrant Workers Alliance began Nov. 8 drew little interest. But President-elect Donald Trump’s promise to deport millions of people when he returns to office has reignited fears among the millions of people living and working in the U.S. illegally. More than 500 workers turned up at the KIWA event, several hundred more than initially expected, as information about the government program and the registration clinic spread by word of mouth.

With applications averaging 60 days to be processed, the workers found themselves in a race against the clock to try to secure four years of protections before Trump takes office Jan. 20. With time running out, aid groups are ending their registration efforts. Hundreds of workers from California traveled to Las Vegas over the weekend, where Arriba, an organization that helped run the Koreatown event, held a final registration clinic.

Advertisement

Although Trump is widely expected to do away with the program, immigrant labor advocates said they don’t expect that officials in the new administration will rescind work permits that already have been granted.

Bliss Requa-Trautz, executive director of Arriba, a Las Vegas-based advocacy group, said she warns workers of the risks that come with applying to the deferred action program: Although applications are meant to be confidential, applying nonetheless makes authorities aware that a worker is in the country illegally, giving rise to the possibility that they could be targeted for deportation afterward.

“Once you’re in the system you’re visible to the agencies, whereas otherwise folks might be flying under the radar,” said Alexandra Suh, executive director of the Koreatown worker center. “It’s a certain level of visibility that comes with a risk.”

Regardless, for many workers who take odd jobs under the table or use a false Social Security number to work, a temporary job permit can mean better pay and a temporary reprieve from the fear of being deported.

A man who said he immigrated to the United States from Chihuahua, Mexico, more than 20 years ago sat in a white plastic chair waiting his turn to meet with an attorney at the Koreatown registration drive. He learned about the clinic from some of his friends whom he used to work with at Bella+Canvas, a local apparel manufacturer and wholesaler. The company has worked with BaronHR, a staffing company that has come under scrutiny from federal agencies for alleged abuses of workers it recruits for warehouses, factories and distribution center jobs in California and elsewhere.

Advertisement

A man who asked to be identified by only his first name, Hector, waits at the Koreatown Immigrant Workers Alliance for help applying for job permits under a federal program that provides deportation protection for workers involved in labor investigations.

(Suhauna Hussain / Los Angeles Times)

“I am sure my life is going to change,” said the man, who asked to be identified by only his first name, Hector. “I’m going to be able to take more work to help my family.”

During the Obama administration, authorities began granting relief to workers involved in some labor cases and the program was formalized under Biden at the beginning of 2023. As of the end of October, more than 7,700 workers had been granted protections under the program for assistance in more than 50 investigations by state and federal agencies, according to the Department of Homeland Security. Over the summer, the length of the protection was expanded to four years from two.

Advertisement

An investigation of a chemical leak that killed six workers at a Georgia poultry plant in 2021 served as an early test case of how granting protections to workers could help bolster the collection of evidence and testimony, said Jessie Hahn, senior counsel for labor and employment policy at the National Immigration Law Center. Immigrant workers had initially hesitated to come forward because they feared retaliation by the plant’s owner, including a call to local police or Immigration and Customs Enforcement, she said.

“One thing to understand is that this program does not have a humanitarian purpose. It has a law enforcement purpose,” Hahn said. “The government is trying to facilitate investigations.”

Hahn said her organization has partnered with the United Farm Workers union to help farmworkers employed by major farms and labor brokers under investigation by California’s workplace safety agency enroll in the program.

Daniel Lopez, a spokesperson for California’s Department of Industrial Relations, said state labor agencies — including the Labor Commissioner’s office and the Division of Occupational Safety and Health — have submitted about 150 requests to the Department of Homeland Security requesting protections for workers employed by companies under investigation. Each request can cover multiple workers.

Attorney Yvonne Medrano of Los Angeles-based Bet Tzedek Legal Services, a nonprofit legal advocacy group, said the loss of the program would not only affect workers but also would create an uneven playing field for employers that follow the rules since it will become difficult to punish bad actors that are flouting minimum wage laws and other regulations.

Advertisement

“We want workers to speak out against bad employers because it benefits everybody,” she said.

To apply, a person must show a letter issued by a government agency naming the worker’s employer as the subject of an investigation and specifying the period covered by the inquiry. A worker admitted into the program is not required to cooperate with the investigation.

A worker who asked to be identified by only his first initial, “A,” because of fear of being identified as being in the country illegally, decided the day of the clinic to drive from Santa Fe Springs with his parents to the Koreatown clinic. He was among many workers at the clinic employed by BaronHR. Until the firm collapsed this year, workers whom the firm employed were often underpaid and working in unsafe conditions, according to a New York Times report published Sunday.

The 30-year-old, who immigrated to the United States from El Salvador with his family when he was 10, had been reluctant to apply to DALE over fears of reprisals if he spoke out about the staffing agency, which also employed his parents. And after so many years living in the country illegally, he also didn’t trust that the program really offered the possibility of working in the country legally.

“Growing up undocumented you grow skeptical, with a nonstop defense mechanism. Even though I’ve seen co-workers get permits, I haven’t accepted it,” A. said. “I’m protecting myself by not letting myself care too much.”

Advertisement

Around 5 p.m., as the light disappeared and the air grew chilly, Jovita Bautista, 50, stayed at her post at the check-in desk outside KIWA, where she had been stationed since 8 a.m. Bautista had applied for her work permit in early August, and received it weeks later.

She said she has been able to secure better-paying work, leaving behind her minimum-wage staffing agency job. She now does the same work, but because she is directly employed by the Intuit Dome in Inglewood, she is paid $22 per hour, she said.

Bautista said she admires Trump for what she describes as his business acumen, and said she owns three of his books. But she fears his impending presidency, because she worries about her siblings who are in the country without authorization.

“I like Donald Trump, but not as president.”

Advertisement

Business

Startup Varda Space Industries snags former Mattel plant in El Segundo

Published

on

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.

Advertisement

(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.

Advertisement

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.

Advertisement

“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.

Advertisement

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.

Continue Reading

Business

How Iran War Is Threatening Global Oil and Gas Supplies

Published

on

How Iran War Is Threatening Global Oil and Gas Supplies

Ships near the Strait of Hormuz before and after attacks began

Advertisement

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.

Advertisement

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.”

Advertisement

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.

Advertisement

Where ships and energy facilities have been damaged

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

Where tankers moving through the Strait have traveled

Advertisement

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.

Advertisement

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.

Advertisement
Continue Reading

Business

Paramount credit downgraded to ‘junk’ status over debt worries

Published

on

Paramount credit downgraded to ‘junk’ status over debt worries

Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:

Call it the deal-debt hangover.

Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.

Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.

S&P Global Ratings took similar action.

Advertisement

To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.

Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.

Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.

Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.

Advertisement

Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.

Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.

Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.

(Evan Agostini / Invision / AP)

Advertisement

Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.

Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.

Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.

Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.

Advertisement

During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.

Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”

It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.

Workers are scattered throughout the region.

HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.

Advertisement

“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”

David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.

Ellison has not announced what the combined company will be called.

Paramount shares closed down more than 6% Tuesday to $12.45.

Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.

Advertisement
Continue Reading

Trending