Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

An employee at a Michigan-based manufacturing company has been charged with stabbing the company president in an assault during a morning staff meeting. Police are still investigating the motive behind the attack. According to US media reports, Nathan Mahoney allegedly entered a conference room at Anderson Express on Tuesday and stabbed company president Erik Denslow. Following the assault, Mahoney fled the scene in a vehicle but was apprehended less than an hour later. Authorities are exploring whether the stabbing was inspired by the recent murder of UnitedHealthcare CEO Brian Thompson in New York City. “We haven't ruled out a copycat motive,” Deputy Police Chief Greg Poulson said, adding that police are reviewing Mahoney's social media and electronic records for potential leads.

 

Inc.

House Republicans’ slimmed-down plan to try to avert a government shutdown was defeated in a hastily called vote Thursday, as several dozen GOP lawmakers joined with Democrats in rejecting the proposal endorsed by President-elect Donald Trump. The package failed by a vote of 174-235 just hours after it was hastily assembled by Republican leaders seeking to comply with Trump's demands. A prior bipartisan deal was scuttled after Trump and the world's richest person Elon Musk came out against it on Wednesday. Government funding is due to expire at midnight, triggering a partial shutdown. Millions of federal and military employees could be hit with paycheck delays, though that depends on how long a shutdown lasts. The IRS says it will furlough more than half of its nearly 90,000 employees if a shutdown happens. National Park Service sites will also be closed. However, entitlements such as Social Security and Medicare have their own funding vehicles that are separate from the appropriations currently in question. The Social Security Administration’s latest contingency plan for a lapse in funding says it will maintain activities “needed to ensure accurate and timely payment of benefits.” Additionally, the U.S. Transportation Security Administration warned that travelers during the busy holiday season could face long lines at airports.

 

AP News

Reuters

Washington Post

Wall Street Journal

The FT reports on “synthetic risk transfers”, whereby a bank offloads the risks of some loans to ease how much capital it has to set aside for regulatory purposes.

 

Financial Times

In anticipation of the incoming Trump administration, federal civil servants and their allies have initiated preparations to safeguard their rights and positions. A new online resource centre, "Civil Society Strong," aims to provide essential information on employee rights and legal representation. Skye Perryman, CEO of Democracy Forward, said: "We know people are going into the holidays with a lot of anxiety about the future." The efforts come as Trump’s administration is expected to intensify attacks on public servants, including potential job reclassifications that could strip protections from civil servants. The initiative is backed by major government employee unions and watchdog groups, and plans to offer legal support to those targeted. Everett Kelley, President of the American Federation of Government Employees, highlighted the importance of civil servants, saying: "Federal employees are the backbone of our society." The website is set to launch at civilservicestrong.org, providing resources for civil servants facing harassment or retaliation.

 

Washingtonpost.com

Starbucks Workers United said late Thursday that its members will this morning launch five days of strikes at outlets in Los Angeles, Chicago, and Seattle. The strikes, over pay and other benefits, are expected to expand each subsequent day through Christmas Eve, reaching hundreds of locations from coast to coast. “Starbucks proposed an economic package with no new wage increases for union baristas now and a guarantee of only 1.5% in future years,” the union said in a statement. Andrew Trull, a Starbucks spokesman, said union delegates “prematurely ended” this weeks’ negotiations. “It is disappointing they didn’t return to the table given the progress we’ve made to date,” he added.

 

CNN

New York Times

Reuters

Washington Post

The Consumer Financial Protection Bureau (CFPB) has raised concerns that major credit card issuers may be unlawfully devaluing rewards such as points and airline miles. CFPB Director Rohit Chopra said: “Large credit card issuers too often play a shell game to lure people into high-cost cards, boosting their own profits while denying consumers the rewards they've earned”. The agency's guidance highlights potential violations of federal law, including misleading promotional language and vague terms that hinder reward redemption. As of late 2022, 75% of general-purpose credit cards were reward cards, with complaints from consumers about increased point requirements and technical issues in redeeming rewards. Additionally, the CFPB noted that retail credit cards often charge higher interest rates than general-purpose cards, with 90% of retail cards reporting rates above 30%.

 

The Hill

Washington Post

Montana's Supreme Court has upheld a lower court's decision that had sided with 16 young activists who argued that the state violated their right to a clean environment. The lawsuit was brought by students arguing that a state law banning the consideration of climate when choosing energy policy was unconstitutional. In a 6-to-1 ruling, the top court found that the plaintiffs, between ages five and 22, had a "fundamental constitutional right to a clean and healthful environment." Only a handful of states, including Hawaii, Illinois, Pennsylvania, Massachusetts and New York, have similar environmental protections enshrined in their constitutions. Montana must from now on “carefully assess the greenhouse gas emissions and climate impacts of all future fossil fuel permits,” said Melissa Hornbein, an attorney with the Western Environmental Law Center and attorney for the plaintiffs. Republican Gov. Greg Gianforte warned of “perpetual lawsuits that will waste taxpayer dollars and drive up energy bills for hardworking Montanans,” adding “This decision does nothing more than declare open season on Montana’s all-of-the-above approach to energy.” 

 

AP News

BBC News

Grubhub has agreed to pay $25m to settle allegations of misleading customers regarding delivery costs. Federal Trade Commission (FTC) Chair Lina Khan remarked: “Rather than growing organically through honest tactics, Grubhub decided to take shortcuts and lure customers by deceiving them.” The complaint, filed in the U.S. District Court for the Northern District of Illinois, claims that Grubhub engaged in a “pricing shell game” since 2019, advertising low delivery fees while adding hidden charges that often doubled the final cost. Illinois Attorney General Kwame Raoul noted that the settlement mandates the immediate cessation of illegal practices and offers direct relief to consumers. Grubhub, while denying the allegations, said that settling was in the company's best interest to move forward.

 

USA Today

Bloomberg Law

Wall Street Journal

Former moderators at Samasource, an outsourcing company for Facebook, have come forward with harrowing accounts of their experiences vetting graphic content. Many, including a young mother, have been diagnosed with severe post-traumatic stress disorder (PTSD) after enduring extreme material such as child abuse and murder. Despite claims of support from Meta, the parent company of Facebook, many moderators reported inadequate mental health care. The ongoing legal action by 185 workers alleges violations of Kenyan laws against forced labor and human trafficking, as well as intentional infliction of mental health harm.

 

The Guardian

Employees at Amazon's warehouses have raised concerns about unsafe working conditions and job security amid increasing automation, but Tye Brady, Amazon's chief technologist, argues that the company's investment in robotics is enhancing worker safety and efficiency. "We put people at the center of our robotics universe", he said, highlighting the collaboration between humans and machines. The new systems, such as the Sequoia storage cell and Proteus robots, aim to reduce repetitive strain injuries and improve order fulfilment speed. Despite criticisms, Brady insists that automation is not about eliminating jobs but transforming them, with Amazon committing over $1.2bn to upskill its workforce. The company has created hundreds of thousands of new roles, demonstrating that "more robots, more jobs" is a viable approach, Brady maintains.

 

Fast Company

Big Lots is set to begin selling its stores as it can no longer complete its asset sale to Nexus Capital Management. The discount retailer, which employs over 27,000 people, is exploring alternative transactions to remain operational by the end of January. Big Lots president and chief executive Bruce Thorn said: "We all have worked extremely hard and have taken every step to complete a going concern sale". However, a recent valuation appraisal of the company's inventory fell short of expectations, making the sale to Nexus unfeasible. The company will initiate going-out-of-business sales at approximately 870 locations, while still negotiating with Nexus and another firm to save “several hundred” stores. Bankruptcy Judge J. Kate Stickles warned that time is running out, characterising the situation as a “melting ice cube”.

 

The Columbus Dispatch

Los Angeles Times

According to a joint paper by the European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA), Europe must enhance its insurance coverage to better manage the increasing risks posed by climate change. Currently, only 25% of natural catastrophe losses are insured, and this gap is expected to widen as climate-related disasters become more frequent. ECB Vice-President Luis de Guindos said: "We need to increase the uptake of climate catastrophe insurance to limit the growing impact of natural disasters on the economy and the financial system." The proposed solution includes a bloc-wide public-private reinsurance scheme to pool risks and a new EU fund to support infrastructure rebuilding after disasters.

 

Reuters

The National Labor Relations Board (NLRB) has found that the producers of the Netflix reality series Love Is Blind - which sees singles match up after days of dating while separated by a wall - had misclassified the contestants as "participants," and calls for them to be reclassified as employees and receive back pay for any lost wages while they were on the show. The NLRB's recognition comes after several former contestants described the poor treatment they faced while filming the show, including claims that their physical safety was at risk. NPR's Emma Bowman says it is the first major labor action filed on behalf of unscripted TV cast members, "and could lead to big changes to reality shows behind the scenes . . . and even what we see on our screens."

 

NPR / National Public Radio