International

Why the U.S. is experiencing the largest strike and unionization boom in 50 years and its economic consequences

Photo: Reuters

August 17|

The Hollywood strike is the most obvious (and glamorous) face of a union movement that has been gaining strength in the U.S., and which this summer has produced the largest number of workers willing to fold their arms in the country in the last 50 years.

Between screenwriters, actors and unionized Hollywood workers, some 175,000 people have joined the strike since mid-July, even refraining from promoting the two biggest films of the moment, “Barbie” and “Oppenheimer.”

On the other hand, the 340,000 employees of the U.S. postal company UPS came close to declaring a total strike on August 1, which was averted thanks to a preliminary labor agreement.

Pre-settlement estimates had established that just ten days of service disruption would have cost UPS close to US$7 billion.

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In July, the United Auto Workers announced that its 150,000 members are preparing to go on strike if the so-called Detroit Big Three (Ford, Stellantis and General Motors) do not comply with agreed terms for contract renewals in September. Negotiations are still ongoing.

According to an analysis by Cornell University’s school of labor relations, as of early August, 900 strikes were ongoing in the U.S.-more than 300 of them in the United States. -more than 300 of them in California, the state responsible for 15% of the nation’s GDP.

According to U.S. labor market specialists who spoke to the BBC, 2023 represents a recent historic milestone for the revival of unionism in the country.

The trend had already been recorded as far back as 2022. A February study by the Economic Policy Institute think tank reported a nearly 50% increase in the number of workers involved in major strikes between 2021 and last year.

In 2023, a similar jump should be recorded. While the country reported 23 large mobilizations in 2021 (involving at least a few thousand employees), 2023 has so far reported 44 strikes with that same profile.

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The vigor of the workers’ movements – and the fear produced by their effects – led U.S. President Joe Biden, who calls himself “proudly pro-worker,” to appeal to Congress to disarm a movement that threatened to paralyze 115,000 railroad workers in December.

In the U.S., Congress has the power to impose labor agreements and prevent strikes in some essential services. Biden argued that a rail strike could be catastrophic for the country’s economy.

International

Paraguay summons Brazilian ambassador over Itaipú espionage scandal

Paraguay summoned the Brazilian ambassador in Asunción on Tuesday to demand “explanations” and called its own representative in Brasília for consultations following Brazil’s acknowledgment of an espionage operation. The Brazilian government, led by President Luiz Inácio Lula da Silva, attributed the operation to the previous administration.

The surveillance effort aimed to uncover Paraguay’s position in now-suspended negotiations with Brazil regarding the pricing of electricity from the binational Itaipú hydroelectric plant, according to reports in the Brazilian press.

The Brazilian government “categorically denied any involvement in the intelligence operation,” stating in a Foreign Ministry communiqué on Monday that the espionage was carried out under former President Jair Bolsonaro’s administration (2019-2023).

“The operation was authorized by the previous government in June 2022 and was annulled by the interim director of the (state intelligence agency) ABIN on March 27, 2023, as soon as the current administration became aware of it,” Brazil’s government asserted.

Paraguay’s Foreign Minister Rubén Ramírez announced that Brazilian Ambassador José Antonio Marcondes de Carvalho was summoned “to provide detailed explanations” regarding the operation. Additionally, Paraguay recalled its diplomatic representative in Brasília “to report on aspects related to the intelligence activity conducted by Brazil regarding Paraguay’s government affairs.”

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International

Elon Musk to step down as government advisor, per Trump insiders

President Donald Trump has informed his inner circle that Elon Musk will be stepping down from his role as a government advisor, according to a report by Politico today.

Citing three individuals close to Trump, Politico states that the president is pleased with Musk’s leadership at the Department of Government Efficiency (DOGE), where he has implemented significant budget cuts. However, both have agreed that it is time for Musk to return to his businesses and support Trump from a different position outside the government.

A senior administration official told Politico that Musk will likely maintain an informal advisory role and continue to be an occasional visitor to the White House. Another source warned that anyone thinking Musk will completely disappear from Trump’s circle is “deluding themselves.”

According to the sources, this transition is expected to coincide with the end of Musk’s tenure as a “special government employee,” a temporary status that exempts him from certain ethics and conflict-of-interest regulations. This 130-day period is set to expire in late May or early June.

International

Milei vows to make Argentina so strong that Falkland Islanders “choose” to join

Argentine President Javier Milei reaffirmed his country’s claim over the Falkland Islands (known as the Islas Malvinas in Argentina) and praised the role of the nation’s armed forces during a ceremony marking the “Veterans and Fallen Soldiers of the Malvinas War Day,” commemorating 43 years since the 1982 conflict with the United Kingdom.

Argentina continues to assert sovereignty over the islands, arguing that Britain unlawfully seized them in 1833.

“If sovereignty over the Malvinas is the issue, we have always made it clear that the most important vote is the one cast with one’s feet. We hope that one day, the Malvinas residents will choose to vote with their feet and join us,” Milei stated.

“That is why we aim to become a global power—so much so that they would prefer to be Argentine, making deterrence or persuasion unnecessary. This is why we have embarked on a path of liberation, working to make Argentina the freest country in the world and once again the nation with the highest GDP per capita on the planet,” he added.