Biden executive order imposes new rules for AI. Here’s what they are.

Biden executive order imposes new rules for AI. Here’s what they are.
Biden executive order imposes new rules for AI. Here’s what they are.
by Marc Guitard/Getty Images

(WASHINGTON) — President Joe Biden issued a wide-ranging executive order on Monday that aims to safeguard against threats posed by artificial intelligence, ensuring that bad actors do not use the technology to develop devastating weapons or mount supercharged cyberattacks.

The move stakes out a role for the federal government in a nearly half-trillion-dollar industry at the center of fierce competition between some of the nation’s largest companies, including Google and Amazon.

The Biden administration also calls on Congress to pass data privacy legislation, an achievement that has eluded lawmakers for years despite multiple attempts.

The executive order exerts oversight over safety tests that companies use to evaluate conversation bots such as ChatGPT and introduces industry standards like watermarks for identifying AI-fueled products, among other regulations.

The batch of reforms amounts to “the strongest set of actions any government in the world has ever taken on AI safety, security, and trust,” White House deputy chief of staff Bruce Reed said in a statement.

Here’s what’s in the executive order that seeks to rein in AI:

AI companies must conduct safety tests and share the results with the federal government

A key rule established under the executive order demands that AI companies conduct tests of some of their products and share the results with government officials before the new capabilities become available to consumers.

The safety tests undertaken by developers, known as “red teaming,” ensure that new products do not pose a major threat to users or the wider public.

If a safety assessment returns concerning results, the federal government could force a company to either make product improvements or abandon a given initiative.

The new government powers are permitted under the Defense Production Act, a law enacted three-quarters of a century ago that granted the White House a broad role in overseeing industries tied to national security, the Biden administration said.

“These measures will ensure AI systems are safe, secure, and trustworthy before companies make them public,” the White House added.

A new set of standards establishes AI industry norms

The executive order lays out a sprawling set of industry standards in the hope of creating transparent products secure from dangerous outcomes, such as AI-concocted biological material or cyberattacks.

One high-profile new standard would codify the use of watermarks that alert consumers when they encounter a product enabled by AI, which could limit the threat posed by impostor content such as deepfakes.

Another rule would ensure that biotechnology firms take appropriate precautions when using AI to create or manipulate biological material.

The industry guidance will function as suggestions rather than mandates, leaving firms free to set aside the government recommendations.

The federal government will use its leverage as a key funder of scientific research to advocate for compliance on the warning around biological material, the White House said. To bolster the push for watermarks, meanwhile, the White House will require federal agencies to use the markers when deploying AI products.

Still, the executive order risks presenting an ambitious vision for the future of AI but insufficient power to bring about the industry-wide shift, Sarah Kreps, professor of government and director of the Tech Policy Institute at Cornell University, said in a statement.

“The new executive order strikes the right tone by recognizing both the promise and perils of AI,” Kreps said. “What’s missing is an enforcement and implementation mechanism. It’s calling for a lot of action that’s not likely to receive a response.”

Government agencies face strict oversight of their use of AI

The executive order instructs a wide swathe of government agencies to implement changes in their use of AI, elevating federal institutions as examples of practices that the administration ultimately hopes will be adopted by the private sector.

Federal benefits programs and contractors, for instance, will take steps to ensure that AI does not worsen racial bias in their activities, the White House said. Similarly, the Department of Justice will establish rules around how best to investigate AI-related Civil Rights abuses.

Meanwhile, the Department of Energy as well as the Department of Homeland Security will take steps to address the threat that AI poses for critical infrastructure.

Robert Weissman, the president of Washington D.C.-based consumer advocacy group Public Citizen, commended the executive order while acknowledging its limitations.

“Today’s executive order is a vital step by the Biden administration to begin the long process of regulating rapidly advancing AI technology,” Weissman said. “But it’s only a first step.”

Copyright © 2023, ABC Audio. All rights reserved.

General Motors reaches tentative deal to end strike with UAW: Sources

General Motors reaches tentative deal to end strike with UAW: Sources
General Motors reaches tentative deal to end strike with UAW: Sources
Witthaya Prasongsin/Getty Images

(NEW YORK) — General Motors has reached a tentative deal with United Auto Workers to end their strike, according to two sources familiar with the talks.

GM joins Stellantis and Ford, which reached deals in the last week.

The tentative agreements, which must be ratified by union members at each of the respective carmakers, could end a strike against the Big 3 that began last month. The at-times contentious work stoppage thrust UAW President Shawn Fain into the national spotlight and drew support from President Joe Biden.

Tentative agreements struck with Ford and Stellantis called for a roughly 25% raise over four years as well as significant improvements on pensions and the right to strike plant closures. The details of the deal with GM have yet to be disclosed.

The automakers had expressed reluctance to meet some demands from the union that they considered ambitious, saying such moves would take investment away from a costly shift to electric vehicles. The companies have also cited the need to compete with non-union competitors.

GM, Ford and Stellantis faced pressure to reach a deal as financial losses piled up amid the strike. As of last week, the strike had cost the auto industry an estimated $9.3 billion, according to a report released on Monday by Michigan-based research firm Anderson Economic Group.

In a live-streamed address on Facebook on Sunday, Fain said the recent contract agreements would fuel the UAW’s wider ambitions to organize non-union carmakers, including Tesla, Honda and Toyota.

“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” Fain said. “When we return to the bargaining table in 2028, it won’t just be with the Big 3. It will be the Big 5 or Big 6.”

The union, which represents nearly 150,000 autoworkers, launched a work stoppage against the Big 3 carmakers more than a month ago, deploying a “stand-up” strike method to target specific plants and add to the list if a deal wasn’t reached. At the peak of the strike, 46,000 employees refused to work.

The UAW sought ambitious demands such as a 40% pay increase combined over the four-year duration of a new contract, as well as a 32-hour workweek at 40-hour pay. Tentative agreements with Ford and Stellantis appeared to fall short of those terms but delivered significant raises and job security protections.

 

Copyright © 2023, ABC Audio. All rights reserved.

Sand, gravel, snow: Latest sports cars can go off-roading too

Sand, gravel, snow: Latest sports cars can go off-roading too
Sand, gravel, snow: Latest sports cars can go off-roading too
Porsche

(NEW YORK) — It was an outlandish concept. Take a Lamborghini Huracan — a low-slung, outrageously fast coupe — and transform it into an “all-terrain super sports car.”

Lamborghinis are built for racetracks, not gravel, sand and mud. The company’s execs, however, had a hunch that enthusiasts would pay up for a limited-edition Huracan that could be driven 12 months a year — including in snow and sleet — without getting stuck, scrapped or towed.

Earlier this year, the Italian automaker started production of the Huracan Sterrato, a $279,000 sports car with serious attitude that can be slung around implausible locales. Every single unit — all 1,499 — is sold out.

“Before people would ask, ‘Who needs an off-roading Huracan?'” Rouven Mohr, chief technical officer of Lamborghini, told ABC News. “I am not surprised by the demand. I was convinced people would love it.”

The Sterrato clearly stands out from its Huracan siblings. It sits 1.7 inches higher compared to a Huracan EVO, has aluminum front underbody protection and comes with custom-engineered Bridgestone tires that are adapted for any road condition or surface. Plus, there’s a rally mode for low-grip scenarios.

Of course, Lamborghini’s definition of “off-roading” is different than Jeep’s or Toyota’s. Sadly, Sterrato drivers cannot crawl over boulders without adding some necessary upgrades. Dune bashing may be challenging, too. But the Sterrato can trample beaches, dominate dirt roads in Joshua Tree National Park and traverse slippery winter roads.

The air intakes on the rear hood and radiators make the Sterrato look as threatening as a modified Ford Bronco.

“There are limitations to the Sterrato,” Andrea Baldi, Automobili Lamborghini Americas CEO, told ABC News. “Sterrato added a lot of practical use, though. Versatility is becoming more and more relevant for super sports cars.”

Porsche, like Lamborghini, joined the red-hot off-roading space with the 911 Dakar. Built specifically for ice, deserts and challenging road conditions, the car’s hydraulic lift system, suspension and Pirelli all-terrain tires raise it a maximum 7.52 inches off the ground — identical to some SUVs.

“Porsche has a history of building rally cars. There is a precedent,” Matt Farah, host of the popular podcast “The Smoking Tire,” told ABC News. “It’s been building rally cars since the 1970s.”

He added, “Demand is strong for the Dakar. All special Porsches are hard to get.”

Tony Quiroga, editor-in-chief of Car and Driver, said cars like the Sterrato and 911 Dakar give owners more flexibility and, more importantly, peace of mind.

“When you drive an exotic car, you’re thinking, “Am I going to scrape it? Am I too close to the curb? It’s heartbreaking when you hear that scrape,” he told ABC News. “These worries are sort of gone by adding just a little bit of ground clearance.”

He went on, “The 911 Dakar and Sterrato are an extension of wanting to drive a sports car year-round. A lot of people are not interested in setting lap times.”

Added Farah: “People who buy expensive cars are worried about taking them to the track. The Sterrato and 911 Dakar can be driven on sand and dirt confidently.”

Enthusiasts have been clamoring for off-roading sports cars. In 2021, German company Singer Vehicle Design transformed a 1990 911 into an off-roading savage that could easily shred pavement or win the Baja 1000. The car, designed in partnership with rally expert Richard Tuthill, was named “All-terrain Competition Study” and commissioned by a client.

Farah, who once converted a 1987 911 Safari into a rally car, got to test the 911 Dakar’s capabilities in the Sahara Desert.

“We drove it on the sand dunes … it was very fun to fling around and do big slides on,” he said.

Now he’s campaigning to get other sports car makers to take a leap of faith and follow in Lamborghini’s and Porsche’s tracks.

“I told the Corvette team they should do an off-roading sports car. They were curious about my ideas,” Farah said. “This is a new genre that has a lot of promise.”

Copyright © 2023, ABC Audio. All rights reserved.

UAW and Stellantis reach tentative contract agreement

UAW and Stellantis reach tentative contract agreement
UAW and Stellantis reach tentative contract agreement
Emily Elconin/Bloomberg via Getty Images

(DETROIT) — The United Auto Workers union and Stellantis announced Saturday they have reached a tentative agreement, more than 40 days after the union launched a strike against the big three U.S. automakers.

The development comes days after the UAW and Ford reached a tentative agreement.

“Once again, we have achieved what just weeks ago we were told was impossible,” UAW President Shawn Fain said in a statement.

According to the UAW, the tentative agreement includes 25% in base wage increases through April 2028 and will raise the starting wage to more than $30 an hour compounded with estimated cost-of-living allowances.

Stellantis North America COO Mark Stewart in a statement thanked “all the negotiating teams who have worked tirelessly for many weeks to get to this point.”

The UAW said its members will return to work at Stellantis while the agreement goes through the ratification process.

UAW represents nearly 44,000 workers at Stellantis, according to the union.

President Joe Biden called it a “groundbreaking contract” that offers “record raises, more paid leave, greater retirement security, and more rights and respect at work.”

“I applaud the UAW and Stellantis for coming together after hard fought, good faith negotiations to reach a historic agreement that will guarantee workers the pay, benefits, dignity and respect they deserve,” he said in a statement. “I want to applaud the UAW and Stellantis for agreeing to immediately bring back all of the Stellantis workers who have been walking the picket line on behalf of their UAW brothers and sisters.”

On Sept. 15, UAW members launched their strike against Ford, Stellantis and General Motors after they failed to reach a new contract agreement for plants in Michigan, Ohio and Missouri.

The so-called stand-up strike is still ongoing at GM, the UAW said.

The union represents approximately 150,000 workers across the big three automakers.

Copyright © 2023, ABC Audio. All rights reserved.

Online retailer Shein has catapulted to the top of fast fashion — but not without controversy

Online retailer Shein has catapulted to the top of fast fashion — but not without controversy
Online retailer Shein has catapulted to the top of fast fashion — but not without controversy
Allen J. Schaben/Los Angeles Times via Getty Images

(NEW YORK) — Online retailer Shein has become well-known for its massive inventory of trendy clothing produced and sold to consumers on the cheap.

In just a few short years, the company catapulted to the top of the fast fashion world by harnessing influencer culture and outperforming rivals – all while staying secretive about their operations.

“This company just seemed to kind of come out of nowhere. There are so many fashion companies out there. But we’ve never really seen one grow this quickly and take this much market share as quickly as Shein did,” said Elizabeth Cline, author of Overdressed and The Conscious Closet.

It’s now the most-visited clothing website in the world, with customers spending twice as much time on the site than Nike.com, which is the next most popular site, according to Similarweb Digital Data.

The idea behind fast fashion is to get the newest styles on the market as quickly and cheaply as possible, so consumers can snap them up while they’re the most popular, according to experts who spoke to ABC News in a new episode of Impact x Nightline streaming now on Hulu.

Other top fast fashion retailers, like Zara and H&M, normally get runway styles to customers in a few weeks to a few months at a fraction of the luxury price. They try to predict trends for the season and fill stores with clothing they predict consumers will want to buy.

But Shein’s business model is breaking that mold, according to Cline.

“What they do is they use data and algorithms to track trends. And when a trend emerges, they place an order. And then they wait to see which product is going to take off. And only then do they go back to their factories and say, ‘This is selling. We need to make more of it,’” Cline said.

This allows Shein to sell trends to consumers while they are at the height of their popularity.

Shein says the company keeps customer data only for as long as is necessary for compliance and legal purposes.

American companies like Amazon or Meta are similar in this way, but lawmakers and watchdogs are nervous because of Shein’s alleged ties to China. The company was founded in China in 2008 and, according to Shein, they source their products mostly from China.

Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware, has been researching Shein for the last few years and has been trying to pin down just how many different styles of clothing Shein sells in a year.

Lu estimates they can offer over 1 million different kinds of products in a single year, “far exceeding any retailer currently available in a market,” he said.

That massive churn of products may not cost consumers a lot of money, but some critics say it does come with a price. Some consumers have started pushing back on the company and designers who have collaborated with the brand.

Shein said in a statement to ABC News, “We 100% believe in ethical practices in all capacities and in doing our due diligence have not seen any substantive evidence definitively showing unethical practices.”

In the summer of 2023, a group of designers filed a RICO lawsuit accusing Shein of numerous violations.

“They allegedly are taking the artwork from the designer without paying any kind of a royalty to the designer, and they’re putting it on their own products, and they’re selling it as if it’s their own designs,” attorney Dyan Finguerra-Ducharme, co-chair of Pryor Cashman’s Trademark Practice, told ABC News. “And that is copyright infringement if those allegations are proven.”

In a statement to “Impact,” Shein said, “This claim is built on nothing but conjecture and conveniently placed buzzwords. We have asked the court to dismiss the lawsuit and we will continue to defend ourselves against these claims that are without merit.

ABC News found at least 53 lawsuits alleging copyright infringement against Shein and its related companies. Most of the cases were settled or dismissed, but over a dozen are still ongoing.

Cline says she is also concerned about the lack of transparency of Shein’s suppliers, many of which are in the manufacturing hub of Guangzhou, China.

“They don’t have a close relationship with these factories. They don’t provide their customers with really any information about who their factories are, and what life is like inside of those factories,” Cline said.

Shein has repeatedly declined requests for an interview. Dozens of manufacturers in the area working with Shein also turned down requests for comment, citing confidentiality agreements.

Meanwhile, social media influencers show off their merchandise to their followers in what has come to be known as “#SheinHauls,” linking directly to the retailer for people who want to purchase the same items.

Madison Toth, one of Lu’s students, points to the role of social media in the success of brands like Shein.

“You see somebody wearing it, you like it…and you can just immediately click it and buy it and it’s at your door the next day,” Toth said.

ABC News’ Allie Weintraub contributed to this report.

Copyright © 2023, ABC Audio. All rights reserved.

Scholastic removes optional diverse book section after controversy

Scholastic removes optional diverse book section after controversy
Scholastic removes optional diverse book section after controversy
Universal Images Group via Getty Images

(TALLAHASSEE, FLORIDA) — Children’s book publisher Scholastic has reversed its decision to create a separate, optional section for its elementary school book fairs for titles written predominantly by and about people of color and LGBTQ people.

Scholastic’s initial decision to make some books optional came as nationwide attempts to ban books spike across the country and as dozens of states continue to implement policies that restrict how the subjects of race, gender and sexual orientation are discussed in schools.

“We understand now that the separate nature of the collection has caused confusion and feelings of exclusion,” said Scholastic in a Wednesday press release. “We are working across Scholastic to find a better way. The Share Every Story, Celebrate Every Voice collection will not be offered with our next season in January.”

Scholastic’s “Share Every Story, Celebrate Every Voice” was made up of 64 titles, according to a preview of the list provided to EdWeek. The list includes books such as “I Am Ruby Bridges” by Ruby Bridges, “I Color Myself Different” by Colin Kaepernick and “She Dared: Malala Yousafzai” by Jenni L. Walsh.

“Because Scholastic Book Fairs are invited into schools, where books can be purchased by kids on their own, these laws create an almost impossible dilemma: back away from these titles or risk making teachers, librarians, and volunteers vulnerable to being fired, sued, or prosecuted,” Scholastic said about its original decision to create a book section that schools can opt out of.

The decision was criticized as censorship, with advocacy groups claiming the move will encourage those behind book bans and restrictive laws.

In the first eight months of the year, the American Library Association (ALA) recorded 695 attempts to censor library materials, impacting 1,915 unique book titles.

The vast majority of challenges were to books written by or about a person of color or LGBTQ authors, according to the ALA.

“Censorship is anti-democratic and undermines one’s freedom to learn,” said the National Black Justice Coalition in a statement. “We condemn Scholastic for its decision to segregate books on race, gender, and sexuality at book fairs in a disappointing effort to appease a loud minority using politics to attack children and public schools to turn out voters using ignorance, fear, and hate.”

Color Of Change, a racial justice advocacy group, said in a penned letter to Scholastic leadership: “The inclusion of Black and queer characters, authors, and stories in school book fairs is not optional. We call on Scholastic’s leadership to remove this exclusionary feature and commit to taking meaningful action to protect Black and LGBTQ books.”

It applauded the decision to not offer a separate section.

Scholastic, alongside several other advocacy groups, recently signed an open letter against book bans. Several of the co-signers on that letter denounced Scholastic’s decision to create a separate section for such stories.

“Sequestering books on these topics risks depriving students and families of books that speak to them,” said PEN America, a nonprofit organization focused on free expression, arguing that book bans “deny the opportunity for all students to encounter diverse stories that increase empathy, understanding, and reflect the range of human experiences.”

 

Copyright © 2023, ABC Audio. All rights reserved.

US economy grew at blistering pace in third quarter

US economy grew at blistering pace in third quarter
US economy grew at blistering pace in third quarter
Javier Ghersi/Getty Images

(NEW YORK) — The U.S. economy grew at a blistering pace over three months ending in September, more than doubling growth in the previous quarter and rebuking worries about a possible recession. The robust performance, however, complicates the fight to dial back inflation.

Fresh GDP data released on Thursday, which exceeded economist expectations, reinforces other recent indicators of a strong economy resisting the Federal Reserve’s effort to cool price increases with a slowdown.

A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.

U.S. GDP grew at a 4.9% annualized rate over the three-month period ending in September, accelerating from a 2.1% annualized rate over the previous quarter.

Such sturdy performance could nudge the Fed to hike rates at its meeting next week, as it tries to combat persistently high inflation.

Speaking at a luncheon in New York City last week, Fed Chair Jerome Powell noted the unexpectedly strong economic performance in recent months.

“We are attentive to recent data showing the resilience of economic growth and demand for labor,” Powell said, adding that such growth could “put further progress on inflation at risk.”

Inflation stands well below its peak last year of over 9%, but progress has stalled in recent months and price growth remains more than a percentage point higher than the central bank’s target rate.

Recent economic growth, however, belies an alarm sounded by one of the most important economic indicators: the 10-year treasury yield.

A rapid rise in U.S. government bond yields over recent weeks has elevated borrowing costs for consumers seeking mortgage loans and corporations pursuing funds to expand their business.

The jump in borrowing expenses threatens to slow economic activity in the coming months. Economists expect GDP growth to slow later this year.

The onset of some financial pain is exemplified by the housing market, where the average interest rate for a 30-year fixed mortgage reached 8% last week, Mortgage News Daily data shows.

High mortgage rates have dramatically slowed the housing market, since homebuyers have balked at the stiff borrowing costs, and home sellers have opted to stay put with mortgages that lock them into comparatively low rates.

Mortgage applications have fallen to their lowest level since 1996, the Mortgage Brokers Association said earlier this month.

Major housing industry groups voiced “profound concern” about rising mortgage rates in a letter last week that urged the Federal Reserve to stop hiking its benchmark interest rate.

Business leaders and policymakers will closely watch when the Fed announces its latest rate-hike decision on Nov. 1.

The central bank expects to raise rates one more time this year, according to projections included alongside a statement last month from the Federal Open Market Committee, or FOMC, the Fed’s decision-making body on interest rates.

The benchmark interest rate currently stands at a range 5.25% to 5.5%, as a result of a near-historic series of rate increases, also known as credit tightening,

“Given the fast pace of the tightening, there may still be meaningful tightening in the pipeline,” Powell said last week.

Copyright © 2023, ABC Audio. All rights reserved.

US economy expected to have grown at blistering pace in third quarter

US economy grew at blistering pace in third quarter
US economy grew at blistering pace in third quarter
Javier Ghersi/Getty Images

(NEW YORK) — The U.S. economy is expected to have grown at a blistering pace over the three months ending in September, fueling optimism about the nation’s outlook but complicating the fight to dial back inflation.

Fresh GDP data to be released on Thursday is expected to reinforce other recent indicators of a strong economy resisting the Federal Reserve’s effort to cool prices increases with a slowdown.

A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.

Economists expect GDP to have grown at 4.3% annualized rate over the three-month period ending in September — a rate nearly twice as fast as the previous quarter.

U.S. GDP grew at a 2.4% annualized rate over three months ending in June, which marked an advance from the rate recorded over the previous quarter.

Such robust indicators could nudge the Fed to hike rates at its meeting next week, as it tries to combat persistently high inflation.

Speaking at a luncheon in New York City last week, Fed Chair Jerome Powell noted the unexpectedly strong economic performance in recent months.

“We are attentive to recent data showing the resilience of economic growth and demand for labor,” Powell said, adding that such growth could “put further progress on inflation at risk.”

Inflation stands well below its peak last year of over 9%, but progress has stalled in recent months and price growth remains more than a percentage point higher than the central bank’s target rate.

Recent economic growth, however, belies an alarm sounded by one of the most important economic indicators: the 10-year treasury yield.

A rapid rise in U.S. government bond yields over recent weeks has elevated borrowing costs for consumers seeking mortgage loans and corporations pursuing funds to expand their business.

The jump in borrowing expenses threatens to slow economic activity in the coming months. Economists expect GDP growth to slow later this year.

The onset of some financial pain is exemplified by the housing market, where the average interest rate for a 30-year fixed mortgage reached 8% last week, Mortgage News Daily data shows.

High mortgage rates have dramatically slowed the housing market, since homebuyers have balked at the stiff borrowing costs, and home sellers have opted to stay put with mortgages that lock them into comparatively low rates.

Mortgage applications have fallen to their lowest level since 1996, the Mortgage Brokers Association said earlier this month.

Major housing industry groups voiced “profound concern” about rising mortgage rates in a letter last week that urged the Federal Reserve to stop hiking its benchmark interest rate.

Business leaders and policymakers will closely watch when the Fed announces its latest rate-hike decision on Nov. 1.

The central bank expects to raise rates one more time this year, according to projections included alongside a statement last month from the Federal Open Market Committee, or FOMC, the Fed’s decision-making body on interest rates.

The benchmark interest rate currently stands at a range 5.25% to 5.5%, as a result of a near-historic series of rate increases, also known as credit tightening,

“Given the fast pace of the tightening, there may still be meaningful tightening in the pipeline,” Powell said last week.

Copyright © 2023, ABC Audio. All rights reserved.

UAW reaches tentative deal with Ford

UAW reaches tentative deal with Ford
UAW reaches tentative deal with Ford
fredrocko/Getty Images

(NEW YORK) — Ford Motor and United Auto Workers union (UAW) have reached a tentative agreement that would end the strike at Ford, both parties confirmed Wednesday night.

“Record profits mean record contracts. We have a tentative agreement at Ford,” the UAW wrote in a post on X (formerly Twitter).

Ford also issued a statement saying the company was “pleased to have reached a tentative agreement on a new labor contract with the UAW covering” operations in the U.S.

“Ford is proud to assemble the most vehicles in America and employ the most hourly autoworkers. We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant, calling 20,000 Ford employees back to work and shipping our full lineup to our customers again. The agreement is subject to ratification by Ford’s UAW-represented employees. Consistent with the ratification process, the UAW will share details with its membership,” Ford’s statement concluded.

This deal would still need to be ratified by a majority of Ford’s 57,000 UAW members.

On Sept. 15, UAW members launched their strike against Ford, General Motors and Stellantis after they failed to reach a new contract agreement for plants in Michigan, Ohio and Missouri.

The union, which represents nearly 150,000 workers, demanded a 40% pay increase combined over the four-year duration of a new contract, as well as a 32-hour workweek at 40-hour pay.

Over the last few weeks, workers from other plants also began strikes, with nearly 45,000 UAW members walking off the job.

Copyright © 2023, ABC Audio. All rights reserved.

Changes to frequent flyer programs hit budget carriers like Frontier Airlines

Changes to frequent flyer programs hit budget carriers like Frontier Airlines
Changes to frequent flyer programs hit budget carriers like Frontier Airlines
Greg Bajor/Getty Images

(NEW YORK) — Being a frequent flyer has gotten crowded and the rewards for being a repeat customer are seeing major changes.

Frontier Airlines is the latest to join the growing list of airlines making a massive overhaul to its frequent flyer programs that will make it much harder to get elite status.

“I can’t afford to earn elite status on any of the big three carriers,” traveler Jacob Brown told ABC News’ Good Morning America. “And now I can’t even afford to earn status on the budget carrier.”

The biggest change to Frontier’s mileage program — formerly known as EarlyReturns, now called FRONTIER Miles — has moved from a point system based on how many miles you fly to how much you spend.

As stated on the carrier’s website about the new mileage program, flyers “can still earn Elite Status with only 20,000 Status Miles or 25 flight segments.”

“Loyalty is when you are a returning customer. Not when you’re a customer once or twice and spend a lot of money,” Brown said.

These new changes are set to start in January 2024.

TPG’s senior aviation editor Ben Mutzabaugh explained to GMA that “if you fly a 2,000 mile flight you used to get 2,000 miles. Now you’ll get [miles] depending on how much your fare is.”

Frontier is the first budget-airline to roll out new rules for its loyalty program, falling in line with Delta and American both of which announced similar changes based on how much travelers spend.

These changes also come as airlines continue to grapple with long lines for airport lounges that have been filled to capacity creating longer waits, including for credit card holders with special rewards.

Delta faced major backlash after first announcing its changes, that CEO Ed Bastian later walked back.

“The uproar that Delta had with their latest changes — was intense. I have never seen anything like that in more than a decade of covering the airline industry,” Mutzabaugh said.

Delta has since reduced the dollar amount flyers need to spend to reach elite status and will allow slightly more lounge access than its original rolled out plan, according to the updated policy.

Southwest has bucked the trend, actually opting to make it easier for its frequent flyers to earn higher status.

“If you’re a free agent for airlines at this point. Just see which airline you like the best,” Mutzabaugh recommended.

Copyright © 2023, ABC Audio. All rights reserved.