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U.S. opens $3 billion aviation manufacturing wage subsidy program


A United Airlines passenger jet takes off with New York City as a backdrop, at Newark Liberty International Airport, New Jersey, U.S. December 6, 2019. REUTERS/Chris Helgren/File Photo

WASHINGTON, June 15 (Reuters) – The U.S. Transportation Department said Tuesday it had launched a $3 billion aviation manufacturing payroll subsidy program that will cover up to half of eligible companies’ compensation costs for as long as six months.

The program, funded by Congress, requires companies to commit to not conducting furloughs without employee consent or laying off employees covered by subsidies during the six-month period. Applications must be filed by July 13.

Companies eligible include aircraft, engine, propeller or component manufacturers and companies that repair or overhaul airplanes and parts.

The subsidy program cannot cover more than 25% of an employer’s total U.S. workforce as of April 2020 and can only cover employees with total annual compensation of $200,000 or less.

To qualify, a company must have involuntarily furloughed or laid off at least 10% of its total workforce, or have experienced at least a 15% decline in 2020 total operating revenues.

More than 100,000 jobs have been lost in the aerospace industry since the start of the COVID-19 pandemic, according to the Transportation Department. Before then, the U.S. aerospace industry was estimated to employ approximately 2.2 million workers, including 1.2 million who worked in various parts of the supply chain nationwide.

Boeing Co (BA.N), which has had extensive job cuts, Raytheon Technologies (RTX.N) and Spirit Aerosystems (SPR.N) did not immediately respond to questions about whether they are considering applying. General Electric’s (GE.N) aviation unit said it would not seek assistance from the program.

The International Association of Machinists and Aerospace Workers had strongly urged Congress to fund the program.

Congress has provided assistance to other aviation industry firms, including giving U.S. airlines $54 billion for payroll since March 2020 and that funding will continue to pay much of airline workers’ salaries through Sept. 30.

Reporting by David Shepardson
Editing by Chizu Nomiyama

Our Standards: The Thomson Reuters Trust Principles.



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Categories
Future

U.S. judge rejects Bayer’s $2 bln deal to resolve future Roundup lawsuits


Monsanto Co’s Roundup is shown for sale in Encinitas, California, U.S., June 26, 2017. REUTERS/Mike Blake

A U.S. judge rejected Bayer’s $2 billion class action proposal to resolve future lawsuits alleging its Roundup weedkiller causes cancer, saying in a Wednesday order that parts of the plan were “clearly unreasonable.”

Bayer (BAYGn.DE) has committed up to $9.6 billion to resolve some 125,000 existing claims linking Roundup to non-Hodgkin lymphoma, a type of blood cancer. The proposed class action settlement was aimed at claims by people who have been exposed to the weedkiller and who become sick in the future.

Bayer has said that decades of studies have shown that Roundup and its main active ingredient glyphosate are safe for human use. Bayer did not immediately respond to a request for comment.

U.S. District Court Judge Vince Chhabria in San Francisco said the proposal “would accomplish a lot for Monsanto,” which Bayer acquired for $63 billion in 2018, and “would accomplish far less for the Roundup users” who are currently healthy.

Chhabria had outlined his doubts about the plan in a hearing last week. read more

The plan would have grouped potentially millions of residential users and farm laborers in a class and provided them free medical exams for four years and up to $200,000 if they were diagnosed with non-Hodgkin lymphoma.

Our Standards: The Thomson Reuters Trust Principles.



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