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(DETROIT) — A four-day workweek at full-time pay, a 46% wage increase and a share of company profits are among the demands of the union representing approximately 150,000 workers at the Big 3 U.S. automakers — General Motors, Ford and Stellantis.

The United Auto Workers, or UAW, has vowed to launch a strike on Sept. 14 if the union and the automakers fail to reach an agreement by then.

Even UAW President Shawn Fain last month described the workers’ set of demands as “audacious.” He has defended the ambitious agenda in a series of public statements, citing billions in profits enjoyed by the Big 3.

The automakers, meanwhile, have largely rejected the demands. Only Ford has presented a contract proposal, offering a 9% wage increase over the term of the contract, plus a one-time payout that brings the total raise to 15%.

“Overall, this offer is significantly better than what we estimate workers earn at Tesla and foreign automakers operating in the U.S.,” Ford President and CEO Jim Farley said in a statement on Thursday.

Ford and General Motors declined to respond to ABC News’ request for comment.

In a statement, Stellantis told ABC News that discussions with the union’s bargaining team “continue to be constructive and collaborative with a focus on reaching a new agreement that balances the concerns of our 43,000 employees with our vision for the future — one that better positions the business to meet the challenges of the U.S. marketplace and secures the future for all of our employees, their families and our company.”

Meanwhile, Ford said it looks “forward to working with the UAW on creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever.”

In a statement on Thursday, General Motors Executive Vice President, Global Manufacturing, Gerald Johnson said: “The pace of negotiations is based on how quickly both parties resolve nearly 1,000 UAW demands, including more than 90 presented this week. Our goal remains the same — to achieve an agreement without a disruption that rewards our team members and protects the future of the entire GM team.”

As a potential strike approaches, here are some key UAW demands and what to know about them:

46% wage increase

The UAW has called for a 46% pay increase over the duration of a four-year contract, increasing top hourly wages to about $47 per hour.

Offering context for the extent of the pay increase, Fain has cited recent compensation increases for CEOs at the Big 3 as well as elevated inflation that has cut into purchasing power of workers.

“We went to Ford and proposed a double-digit wage increase, just like the Big 3 CEOs have received over the last four years,” Fain said on Facebook Live on Thursday. “Because we know our members are worth the same and more.”

“We also have a lot to make up for. In inflation adjusted dollars, our starting pay today is $10 an hour less than what it was in 2007,” Fain added.

In response, Ford said that full-time employees would be well-compensated under its offer of a 9% wage increase over the term of the contract, plus a one-time payout that brings the total raise to 15%.

“Full-time permanent Ford employees at the top wage rate could be paid $98,000 – from wages, cost-of-living adjustment bonus, ratification bonus, profit sharing and overtime – in the first year alone,” Farley said in a statement on Thursday.

32-hour workweek

One of the most eye-catching demands put forward by the UAW is a call for a 32-hour workweek at full-time pay.

The request arrives at a time when a growing roster of companies use a four-day workweek, fueling a movement that has accelerated amid a pandemic-era reconsideration of the workplace, experts previously told ABC News.

“We need to get back to fighting for a vision of society in which everyone earns family-sustaining wages and everyone has enough free time to enjoy their lives and see their kids grow up and their parents grow old,” Fain said.

The counteroffer from Ford appears to preserve a five-day workweek. In addition, it keeps benefits such as paid vacation and family days at current levels set under a contract reached in 2019.

Under that deal, full-time permanent employees could reach a maximum of five weeks of paid vacation annually as well as two family days.

“We are committed to creating opportunity for every UAW worker to build a great career at Ford and to become a full-time permanent Ford employee with the good middle-class wages and benefits that come with it,” Farley said.

Protections for workers if their plant closes

In addition to other reforms, the UAW has sought assurance that workers will keep getting paid if their manufacturing plant gets closed.

On top of that, the union has sought the right to strike in the event of a plant closure, giving such workers a source of leverage as the company winds down production.

“The Big 3 want the power to take our jobs and the products we build and move them to other countries where they can more easily exploit workers,” Fain said. “That results in massive job loss that guts local economies and rips apart families as workers uproot themselves from their lives and homes to travel across the country to get another job.”

Farley did not address this specific issue in a statement on Thursday but he emphasized the importance of Ford remaining competitive with other automakers.

“We will not make a deal that endangers our ability to invest, grow and share profits with our employees,” Farley said. “That would mortgage our future and would be harmful to everyone with a stake in Ford, including our valued UAW workers.”

ABC News’ Meredith Deliso contributed reporting.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Nearly 15 million cable viewers lost access to ESPN, ABC and other Disney-owned channels over Labor Day weekend when the global entertainment company and cable giant Charter Communications failed to renew a distribution deal.

Attempting to watch the U.S. Open or games from the first weekend of the college football season, subscribers to Charter’s cable TV service, Spectrum, instead encountered blackouts.

The impasse arrives at a moment of transition for the industry as a significant decline in viewership for linear television coincides with the rise of streaming.

Both Disney and Charter Communications declined to comment in response to an ABC News request.

Here’s what to know about the dispute between Disney, parent company of ABC News, and Charter Communications.

What is the consumer impact of the impasse between Disney and Charter Communications?

Access to the channels remains disabled for millions of Spectrum subscribers, as Disney and Charter Communications volley public statements blaming the other for the impasse.

The dispute persists less than one week before the regular-season debut of “Monday Night Football” on ESPN, ESPN2 and ABC, typically one of the most-watched TV programs on the nights when it is broadcast.

Some subscribers faced hold times of up to three hours over the weekend as they attempted to cancel their Spectrum subscriptions, Disney said in an online post.

During a Friday conference call with investors, Charter Communications President and CEO Christopher Winfrey criticized Disney for the timing and duration of the impasse.

“Programmers choose expiration dates that drive the most leverage for them by inconveniencing our collective customers,” Winfrey said during the call, which was reviewed by ABC News.

“We respect the quality of product that Disney produces, and its management team, but the video ecosystem is broken,” Winfrey further said. “I’m disappointed that Disney so far has insisted on higher prices, forcing customers to take on their products when they don’t want them or can’t afford them and asking to require customers to pay for direct-to-consumer apps that their linear fees already pay for.”

Disney, meanwhile, faulted Charter Communications for the inconvenience its customers are facing.

“Labor Day weekend is supposed to be one of the more relaxing holidays of the year in the U.S.,” Disney said in its online post on Sunday. “Unfortunately, Charter has made it a stressful one for its customers.”

What caused the dispute between Disney and Charter Communications?

Typically, cable providers pay a fee to content creators like Disney to make their channels part of the package accessed by cable customers.

On Thursday, Disney pulled its programming from Spectrum after, according to Charter, “Charter proposed a model that creates a better value for consumers and the industry,” which “Disney declined.” Under the terms of the current deal, Spectrum paid Disney $2.2 billion each year in programming costs, excluding revenue generated by advertising, Charter Communications said in a presentation to investors on Friday.

The two sides have thus far failed to agree on a new distribution deal.

Over the past five years, the linear TV industry has lost roughly 25 million viewers, or about 25% of its audience, said Charter Communications’ Winfrey during Friday’s conference call, adding, “It’s staggering.”

“We’re on the edge of a precipice,” Winfrey added. “We’re either moving forward with a new collaborative video model or we’re moving on.”

However, Disney has downplayed anything out of the ordinary in the dispute with Charter Communications, and instead highlighted the popularity of its channels with Charter customers.

“Disputes between cable companies and content providers aren’t new,” Disney said in their online post. “However, millions of consumers may find themselves perplexed and frustrated by what’s going on.”

ESPN aired more than half of the top cable 100 telecasts in Charter homes during the past year, Disney added, citing data from Nielsen.

“Disney deeply values its relationship with its viewers and is hopeful Charter is ready to have more conversations that will restore access to its content to Spectrum customers as quickly as possible,” Disney declared.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — The all-new Disney Treasure is the sixth ship to join the magical Disney Cruise Line fleet, and while it doesn’t officially set sail until December 2024, ABC News’ Good Morning America got a sneak peek at what’s on deck.

In a virtual grand reveal event on Tuesday morning, Disney Cruise Line shared never-before-seen renderings and details about the new Disney Treasure that guests can expect aboard the sister ship of the Disney Wish.

What to expect aboard the new Disney Treasure

The ship’s overall design was “inspired by Walt Disney’s love of exploration” and the theme of the ship is adventure, complete with Peter Pan and Captain Hook as the star stern characters.

Guests will be surrounded by the motif throughout their experience and even Captain Minnie Mouse will sport a new adventure-ready ensemble that was created exclusively for the new ship.

The ship will feature all-new themed venues and live experiences with touches that bring Walt Disney Animation Studios, Pixar and Disney Parks to life like never before, from the colorful plazas of Mexico as seen in Coco to diving 20,000 Leagues Under the Sea within the iconic Nautilus.

The Disney Treasure embarks on its maiden voyage, a seven-night Eastern Caribbean cruise from Port Canaveral, Florida, on Dec. 21, 2024, followed by an inaugural season of seven-night itineraries to the Eastern and Western Caribbean from Port Canaveral. Disney Cruise Line Castaway Club members can book a Disney Treasure cruise as early as Sept. 12, 2023, and bookings will open to all guests on Sept. 20, 2023.

New dining and entertainment inspired by Pixar and Walt Disney Animation Studios

Two venues onboard the Disney Treasure will pull from the worlds of Disney and Pixar.

First up, the Plaza de Coco, a theatrical dining experience themed to the hit 2017 animated film Coco, complete with the story of Miguel and vibrant mariachi performances, his family’s history and the famed magic guitar.

The second is Jumbeaux’s Sweets, reminiscent of the popular ice cream parlor Jumbeaux’s Café from Zootopia. The pink Victorian-style shop will serve 20 flavors of handmade gelato and 16 flavors of ice cream, as well as sorbets, specialty treats, candies and more.

Theme park adventures onboard the new Disney Treasure

Another first for Disney Cruises is the addition of a few beloved Disney Parks attraction-inspired venues.

The Skipper Society, located near the Grand Hall, will take guests into the world of the Jungle Cruise on the high seas. The lounge with poker and other games will be filled with tributes to the trusty, dry-witted skippers, references like a monkey-shaped chandelier, postcards, luggage tags and a canopy of jungle foliage, plus themed cocktails, light snacks and live entertainment.

The Periscope Pub will be Disney Cruise Line’s first venue inspired by the spellbinding 1954 adventure film and former ride, 20,000 Leagues Under the Sea, designed with submarine-style interiors and 19th century steampunk influences to make passengers feel like Captain Nemo on the Nautilus, and a decorative statement rug featuring his fabled nemesis, the giant squid.

The pub will be more of a casual venue ideal for guests looking to unwind, watch live sports or news and enjoy a menu of craft brews and light bites.

Finally, the Tomorrow Tower Suite was designed to capture the forward-thinking design of EPCOT. The nearly 2,000-square-foot accommodation, set high in the ship’s forward funnel, is a one-of-a-kind suite that comfortably sleeps eight people and overlooks the top deck of the ship with an expansive two-story window. The suite is full of dynamic art pieces, molten metal accents and futuristic, colorful glass accents that will evoke the distinct atmosphere of EPCOT’s World Discovery neighborhood.

More magical details about the Disney Treasure

Since construction first began in January at Meyer Werft shipyard in Papenburg, Germany, Disney Parks Blog has revealed a handful of details about the new ship, including the stern character sculptures of Peter Pan and Captain Hook to honor the adventure theme.

“Harnessing the power of Tinker Bell’s pixie dust, Peter Pan will levitate next to the Disney Treasure to add the finishing touch to the ship’s stern filigree,” Disney Parks Blog announced last month. “Meanwhile, Peter Pan’s longtime rival, Captain Hook can be seen leaning out a porthole with a vengeful expression on his face. Paintbrush and paint bucket in hand, Peter Pan sports a mischievous grin as he glances back at Captain Hook, who is dripping in yellow paint.”

The Grand Hall is “inspired by the mystery and grandeur of a gilded palace” with real-world influences from Asia and Africa, and statues of Aladdin and Princess Jasmine to pay homage to the fictional land of Agrabah.

In the video reveal, Disney showed off how the ship blends “one-of-a-kind offerings with unparalleled hospitality that distinguishes every Disney Cruise line vacation.”

Disney is the parent company of ABC News and Good Morning America.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — America has range anxiety. Lucid Motors CEO Peter Rawlinson may have an answer.

Rawlinson, an industry veteran who previously engineered cars for Tesla, Lotus and Jaguar, built the Lucid Air all-electric sedan to quell range fears and transform how motorists drive.

The sleek and futuristic Lucid Air ($82,400) can travel up to 516 miles without needing a charge, making it the longest-range EV currently on the market. The young company manufactures its vehicles in Arizona and production of its halo car, the $249,000 Lucid Air Sapphire (1,234 horsepower, 1,430 lb-ft of torque), begins this month. The company’s first SUV, the Lucid Gravity, will be unveiled in November.

Rawlinson, who is also Lucid’s chief technology officer, said cheap electric vehicles with small, efficient batteries will get Americans to permanently trade in their gasoline-powered vehicles for electrics.

“The feeling of the road, the feedback through the steering, the instantaneous torque — there is romance with an electric car,” he said.

Rawlinson recently sat down with ABC News to address Americans’ attitudes toward EVs, how to reduce the mining of core materials for batteries and why he does not miss the exhaust note on a Lotus sports car.

The interview below has been edited and condensed for clarity.

Q: How can you convince Americans to give up their internal combustion cars? Range is a serious concern for many people.

A: Most people still haven’t gotten behind the wheel of an electric car. They’re unaware that it’s actually a better, more pleasurable, more responsive and more engaging driving experience.

If we wind back a few years, the fundamental obstacle was range anxiety. And it still is to a certain degree. But I think we assuaged that concern with Lucid Air having 516 miles of range [for the Grand Touring model]. The key obstacle to widespread adoption in the U.S. and worldwide is the entry price point of an electric car. I am profoundly aware that we need to push the price down so more people can afford electric cars. This is critically important.

There are a number of factors that are going to drive that. One is economy of scale of the battery itself, which is the most expensive part of an electric car. There is another factor that almost no one is taking about: vehicle efficiency. And that’s not battery efficiency — battery efficiency is a misnomer. There is almost no such thing as battery efficiency. The best analogy I can make is miles per gallon in a gasoline car. Mpg is not a function of the size of the gas tank. It’s a function of the efficiency of the vehicle’s gasoline engine.

Right now there is this sense that it’s binary — that all gasoline cars are bad. And there’s this perspective that all electric cars are good for the environment. There are inefficient electric cars. What we’re trying to do at Lucid is advance the technology to make the most efficient cars in the world. This is fundamentally important to mankind because we need to go further with less battery pack.

If we can go further with a smaller battery we can address the entry cost of an electric vehicle. Affordable electric cars will really accelerate the widespread adoption both here in the U.S. and internationally.

Q: Right now your least expensive model is $82,400. Are you eventually going to build a car that is $60,000, $50,000 or $40,000?

A: That is exactly why I go to work. I am not here to build an expensive car that only rich people can afford.

We had to start with a high-end product, that’s the only way I could make [the company] work commercially, the only way I could make the business work financially to attract investment.

But the technology we’re able to develop today — and the future technology — that is the key to unlocking greater efficiency. I would love to be able to license our technology that others can manufacture at scale.

We are targeting a price — and don’t hold me to this — around $50,000. That’s the vision. Right in the heart of Tesla Model 3, Model Y territory. I wish I could go to a lower-price car but it’s the best this company can do in this mid- to late decade time frame. What the world needs of course is the $25,000 electric car. I think that can come as a consequence of the technology we’re developing today. And we’re doing that with a sense of utmost urgency.

Q: It’s not just price, people are also concerned about the national charging infrastructure.

A: About 86% of Lucid customers charge at home overnight. Relatively slow charging is the kindest for the environment, for the grid, for your pocket and for the car.

Overnight charging puts less strain on the grid in the U.S, which is overstretched as it is. Cranking power stations up and down in a 24-hour cycle is very bad for the environment. Now, if it’s wind and solar, that’s great. For now, there will be that carbon content in energy generation.

I think policymakers have a role here. It’s really important to get more overnight AC [alternating-current charging, also known as Level 2] infrastructure for those who live in apartment complexes or street park. There’s too much emphasis on DC fast charging.

It’s very rare for most people to drive more than 500 miles in a day. So 99 times out of 100 you can leave your home fully charged and never have to fast charge — which is worse for the environment, worse for the grid, it’s worse for your car battery. When we look at infrastructure, please let’s have more emphasis on AC overnight charging. That will certainly broaden the appeal for all those people in apartments who do not have access to garage spaces. Personally, I would prefer reliable, slower charging over less reliable, super fast charging.

I don’t get range anxiety, I get charging anxiety. Will the public infrastructure work? As we know it’s not reliable enough now. The less range you’ve got in your car, the more anxiety.

Q: A lot of automakers are choosing to use Tesla’s NACS charging plug for their vehicles. Will Lucid do the same?

A: We are very open-minded. We consider everything. I am a proponent of having a unified standard — but it has to be future proof. That means it should be high voltage, a thousand volts. The lions share of the Tesla grid today is not high voltage. If the U.S. public is going to pay with tax dollars we should have a standard. And I am fine with the NACS plug, I led the team that designed that plug when I was at Tesla.

Q: You were the chief engineer of the Tesla Model S. Who or what will dethrone Tesla from its perch?

A: Everyone is obsessing with dethroning Tesla. I am not trying to dethrone Tesla. I am not! When the Model S came out, the thesis was there is no market for electric cars. Guess what? There wasn’t because no one had done a good electric car. So there wasn’t a market because no one could buy one. Now there’s this perception that Tesla is the market for electric cars. No — there’s a market for great cars. The more people who get behind the wheel in our cars will ditch their gasoline car and move to a Lucid Air because it’s better.

Q: How do we reduce the mining of nickel, lithium and cobalt for EV batteries?

A: If we double battery efficiency, we’ll halve the number of mines for cobalt, nickel and lithium. We can make more efficient cars with smaller batteries.That’s what I am trying to do.

We don’t need 500 miles of range in the future. I think the electric car of the future will be more like 150 miles of range — if we have mature infrastructure.

You need to adopt a top-and-go mentality with EVs. Get a cup of coffee, use the restroom, plug in for eight minutes, top and go. The car’s battery is not like a nickel cadmium battery where topping off is bad.

I think we can get to a car with a 25-kilowatt hour battery pack. If it does 6 miles per kilowatt hour — that’s the magic number, the holy grail — it will save the planet. We’re trying to get 5 with Lucid Air. Right now we’re at 4.74.

Q: You said earlier that electric cars are more enjoyable to drive. Enthusiasts complain that EVs drive like appliances … you can go fast in a straight line but something is missing.

A: I don’t ascribe to that thesis at all. I had a Lotus when I was 21 and I don’t miss the exhaust note at all. The engagement with the road, the feedback through the steering, the instantaneous torque — there is romance with an electric car.

There’s a perception that electrics are appliances because many of them are. The Lucid Air is not an appliance. It’s a love affair with the road. No one would describe it as an appliance.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW  YORK) — The U.S. hiring spree slowed in recent months as employers took on fewer workers and provided smaller wage increases, government data released on Friday showed.

Hiring held steady in August as the U.S. economy added 187,000 jobs, according to a report from the Bureau of Labor Statistics.

While the unemployment rate remains historically low, it ticked up to 3.8% last month. A sharp downward revision of job growth estimates in June and July lowered those totals by a combined 110,000 jobs.

The mildly bad news for workers bodes well for the nation’s fight against inflation, since in theory the looser jobs market and slower pay hikes take pressure off of companies that may otherwise need to charge higher prices as means of addressing ballooning labor costs, economists said.

“The labor market overall is continuing to soar at an ideal cruising altitude — high enough to keep the unemployment rate low while creating more opportunities for workers to come in off the sidelines, but low enough so as not to cause a resurgence of inflation,” Julia Pollak, chief economist at ZipRecruiter, said in a statement on Friday.

The fresh hiring data arrived more than a month after the Federal Reserve raised its benchmark interest rate another quarter of a percentage point, reviving its aggressive inflation fight despite a slowdown of price hikes.

Inflation stands well below its peak last summer of over 9% but remains more than a percentage point higher than the Federal Reserve’s target rate. Price increases accelerated slightly in July, suggesting a bumpy road toward bringing costs down to normal levels.

The jobs report released on Friday “will likely be welcomed by Fed officials,” Gregory Daco, chief economist at global consulting firm EY, said in a statement.

In remarks made at an economic conference in Jackson Hole, Wyoming, last week, Fed Chair Jerome Powell said bringing inflation down to normal levels would require a loosening of the labor market.

Powell described the recent slowdown in hiring as a “rebalancing” of supply and demand for workers, which allows businesses to ease pay increases and in turn soften price hikes.

“We expect this labor market rebalancing to continue,” Powell said.

Over a yearlong period ending in August, average hourly earnings increased 4.3%, which remains robust but marks a slight slowdown from year-over-year wage gains in the previous month, the latest jobs report showed. Pay increases continue to exceed the inflation rate.

Speaking at the White House on Friday, President Joe Biden touted the solid wage increases, saying he believes price hikes can slow without a decline in pay or an increase in unemployment.

“Remember, some experts said to get inflation under control, we needed higher unemployment and lower wages,” Biden said. “But I’ve never thought that it was the problem that too many people have a job or that working people are making too much money.”

Still, the mild cooldown of pay increases could help the U.S. bring down inflation while averting a recession — an outcome known as a “soft landing,” Aaron Terrazas, chief economist at Glassdoor, said in a statement. But the declining wage gains could hurt some household budgets, he added.

“The economy may still be on a glide path to a soft landing, but it may not feel cushy to communities accustomed to more,” Terrazas said.

The next decision from the Federal Reserve about a possible rate increase will take place in roughly three weeks.

An additional rate hike could help bring down prices by further slowing the economy and reducing demand, but the move risks ultimately tipping the U.S. into a recession.

The August jobs report should nudge the Fed toward a decision that leaves its benchmark interest rate unchanged, since the loosening labor market suggests that an economic slowdown has already taken hold, said Daco.

Jeffrey Roach, chief economist at LPL Financial, offered a similar observation, noting that data released earlier this month showed a decline in job openings in keeping with a labor market slowdown.

Taken together, the recent jobs data “gives the Fed some leeway to take a pause later this month,” Roach said.

Last week, Powell said a mixture of economic data will inform its next rate-hike decision, noting that economic trends can prove difficult to assess.

“As is often the case, we are navigating by the stars under cloudy skies,” Powell said. “We will proceed carefully.”

 

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — As the summer winds down, Labor Day weekend travel is about to get underway. Here’s what you need to know before hitting the road or heading to the airport.

The skies

Labor Day weekend is projected to be the third-busiest travel weekend of the year, according to the Federal Aviation Administration.

Expedia expects Friday, Sept. 1 and Monday, Sept. 4 to be the weekend’s busiest days to fly.

Domestic flights are averaging $226 per ticket this Labor Day weekend, down 11% from last year and down 20% from 2019, according to Hopper.

American Airlines and United Airlines both said their busiest travel days of the weekend will be Thursday, Aug. 31 and Friday, Sept. 1.

The Transportation Security Administration said it expects an 11% increase in passengers this Labor Day weekend compared to last year. The agency projects its busiest day to be Friday, Sept 1.

The TSA added that this summer has been the busiest summer travel period on record

The roads

The busiest time on the roads over Labor Day weekend will be between 2 p.m. and 6 p.m. on Thursday, Aug. 31, according to transportation analytics company INRIX. But on Sept. 1, drivers should still expect worse-than-normal traffic between 11 a.m. and 9 p.m.

Car rentals are averaging $41 per day, down 14.5% from this time last year, according to Hopper. The most popular cities for rental car pickups are Orlando, Florida; Las Vegas; and Los Angeles.

Copyright © 2023, ABC Audio. All rights reserved.

(NEW YORK) — Low water levels at the Panama Canal are causing a traffic jam at the historic trading route that connects the Atlantic and Pacific Oceans, threatening to ensnarl the holiday shipping season and raising alarm among canal officials.

The 109-year-old canal works through a water lock system that move ships up or down as they make it to the other side. Each ship that goes through the canal uses millions of gallons of water that gets sucked in from nearby lakes. Without this fresh water, the canal can’t operate.

There’s always been enough rainfall flowing to these lakes, but this year a longer dry season and a shorter rainy season have led to a shortage of freshwater to feed the canal, according to canal officials.

ABC News foreign correspondent Matt Rivers spoke to “START HERE” about his visit to the canal, how authorities are instituting new rules to help conserve water and concerns about the potential impact on supply chains and consumer prices.

BRAD MIELKE: Remember when the Suez Canal in Egypt backed up because of a boat accident, basically? Hundreds of ships patiently lined up for days while the world’s freight traffic just stopped?

Well now, a similar situation is playing out closer to home. The famed Panama Canal is now home to the planet’s biggest traffic jam, but this time it’s not because of a ship, but because of the water.

ABC’s foreign correspondent Matt Rivers is on the ground in Panama right now. Matt ,maybe I should have said not water, it’s a lack of water, right? What’s happening?

MATT RIVERS: Yeah, that’s exactly right. So basically, you have the Panama Canal. Everyone knows that it connects the Pacific Ocean to the Atlantic Ocean. And right now, there are huge delays. You can enter the canal from either the Atlantic or the Pacific, and we took a boat out on to the Pacific the other day and there are just ship after ship after ship stuck waiting.

And the reason why has to do with the way this canal is structured. So, basically, the way this works is that as you enter one side, a series of locks, so think of them as like water elevators – they have to move ships either up or down as they make it to the other side.

In order to do that, the canal sucks water in from nearby lakes. These are freshwater sources. So basically, it’s rainfall that comes down, feeds the rivers, the rivers feed down into the canal.

Each ship that goes through the canal uses about 55 million gallons of water, most of which then gets flushed out to sea as the ship makes its way through the canal. In a place like Panama, which is one of the wettest countries in the world, that has never really been a problem – until now, because when you think about what I just said, you have to have a lot of fresh water.

Well, what happens this year? From January to about March, April, I would say, is typically the dry season in Panama. But that dry season was extended by a few months this year where they didn’t get the amount of rain they needed. It was hotter, a more extended dry season. And when the wet season started, let’s say around June until now, it’s been a less wet than usual wet season.

Basically, with all that adds up to is that there’s less fresh water. The levels in the canal are much lower than where they need to be, and so as a result, canal authorities have less water to work with when they’re moving each one of these ships through.

They’ve had to implement water saving, water conserving measures. So what that’s meant is that not only are they allowing less ships to go through the canal every day, from 36 on average down to about 32 on average, but each ship also has weight restrictions now.

They have to actually have less cargo on board. So what that means is delays. The number of ships that are going through each day is less, but the number of ships arriving same as ever before, and so that’s why on both sides, in the Atlantic and the Pacific, you’ve got ships waiting. Right now, we’re approaching about 150 ships, more or less waiting to transit through.

MIELKE: So how bad is that? Like, what does that mean for consumers, I guess? Like, how bad is it getting as far as the shipments?

RIVERS: Sure. So, basically, think about what these ships carry through. It’s everything from consumer electronics to raw materials used to make other goods. The shipping companies, the companies that are paying for these shipments, they incur more fees. The longer these delays go on, ultimately, their costs go up. And as we saw during the pandemic, what happens when companies incur more costs? Do they eat it in the public good? No.

Generally speaking, they say let’s just pass those costs right along to the consumer. And that is the fear here. We’re not really seeing that yet, but this is the start of the peak season for shipping. And it might I mean, don’t get mad at me for talking about Christmas this early. I’m not someone who likes to see Christmas trees in Target this early, but these shipping companies are thinking about Christmas.

So there could be delays in those goods getting to stores, and you could see prices go up a little bit as a result. Again, we’re not seeing that now, but if these companies decide to pass costs incurred here at the Panama Canal on to your average American, then you could see prices go up.

That said, let me just say, this is not going to be, at least for now, as bad as the kind of supply chain issues that we saw during the global pandemic.
MORE: Drought monitor spells good news for California, but ‘not out of the woods’ on megadrought

MIELKE: Well, and I guess this raises this larger worry, which is like, if there’s a boat accident there, that can get fixed in a day. If there’s part of the canal is destroyed, you could reconstruct that in a week or a month or whatever. Droughts can last for years, Matt. So what happens going forward if the problem is just how much it rains in a country?

RIVERS: Yeah, and those are the questions that we posed to Panama Canal authorities, and they’re taking it one step at a time.

During the wet season, which is where we are now, that’s when normally the feeder system for this canal fills back up. So when dry season comes around again in the early part of next year, they’ve got enough water to work with, they get through the dry season, then the wet season comes again and everything is OK. But if the wet season doesn’t fill back up their supplies enough, then they’re going to be starting off next year on the back foot.

Without fresh water, this canal cannot operate. It’s that simple. So what keeps the authorities here at the Panama Canal up? The long-term viability of the canal. If they don’t get more fresh water, then they can’t operate the canal the same way they have since it opened more than a century ago.

We’re not there yet. We don’t hope, no one hopes, we get to that point. But these are the kinds of conversations that are being had here at the Panama Canal within the official community that have literally never happened before.

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(MIAMI) — Fast food chain Burger King is facing a lawsuit that claims its signature Whopper is marketed on restaurant menu boards as a bigger sandwich than it is in reality.

Consumers in the proposed class-action lawsuit claim Burger King misleads customers and has allegedly committed a breach of contract by showing its bestselling burger with ingredients that “overflow over the bun,” which make the sandwich appear 35% larger, and with more than double the amount of meat than what it actually serves customers.

“These people aren’t looking to get $5 million dollars because they bought a hamburger that didn’t look like what they were advertised. The consumers really want to bring about change. They have a lot of choices. They just want to just be told truthfully what their choices are,” Anthony Russo, an attorney for the plaintiffs, told Good Morning America.

A Burger King spokesperson told ABC News in a statement, “The plaintiffs’ claims are false. The flame-grilled beef patties portrayed in our advertising are the same patties used in the millions of Whopper sandwiches we serve to Guests nationwide.”

ABC News legal analyst and The Cochran Firm managing partner Channa Lloyd explained, “Essentially, this lawsuit boils down to, ‘You sold me something that wasn’t exactly what I got.’ Burger King is just gonna have to show that they were not in a contractual agreement and that what they advertised was what they gave to consumers, and that any hyperbole on their part or exaggeration was what a reasonable consumer would expect.”

Past efforts to mediate a settlement between the plaintiffs and Burger King on this issue have been unsuccessful.

Burger King isn’t the only fast food giant facing such legal trouble.

Taco Bell was sued last month in New York for allegedly selling Crunchwrap Supremes and Mexican Pizzas with half as much filling as its promotions suggest. The chain has not responded to ABC News’ request for comment.

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(NEW YORK) — As Hurricane Idalia slams parts of Florida, the state’s huge tourism industry is also being impacted.

The storm made landfall in Florida’s Big Bend region, north of Tampa, on Wednesday morning as an “extremely dangerous” Category 3 storm, according to the National Weather Service.

Idalia is the strongest hurricane to make landfall in the Big Bend region since 1896.

Here is what to know about how the storm is impacting Florida’s major theme parks and airports.

Orlando International Airport remains open

Orlando International Airport, the state’s busiest airport, is open as of Wednesday morning.

The airport tweeted Wednesday that it remains “open and operational,” but noted that flight disruptions “are expected.”

Tampa International Airport closes ahead of storm

On the other side of the state, Tampa International Airport closed its operations as of 12:01 a.m. local time Tuesday due to Idalia.

The airport tweeted Wednesday morning that it hopes to announce reopening plans later in the day.

Walt Disney World remains open amid Idalia

Walt Disney World Resort, located near Orlando, said its resorts and theme parks are open and “operating under normal conditions” while they are “closely monitoring the path of the projected weather.”

Due to rain in the Orlando area, Disney’s Typhoon Lagoon water park and its two outdoor miniature golf courses were closed Wednesday.

The company also asked guests staying at Fort Wilderness Resort & Campground to “remove and stow” outside items like decor, tents and camper awnings by 6 p.m. local time on Tuesday.

Guests may go online to modify or cancel their Disney Resort hotel reservations.

The company said it is currently waiving its change and cancellation fees for reservations with check-in dates between Aug. 28 and Sept. 4.

Under its hurricane cancellation policies, Walt Disney World states that if the National Hurricane Center issues a hurricane warning for either the Orlando area or where you live within seven days of your planned arrival date, you may reschedule or cancel most hotel room reservations without any change or cancellation fees.

Busch Gardens closes early due to Idalia

Busch Gardens, a Tampa-based theme park, closed at 12 p.m. local time Tuesday ahead of Idalia.

The theme park said it would remain closed Wednesday and planned to reopen Thursday.

Universal Studios remains open

Universal Studios in Orlando said it is staying open as it continues to monitor the path of Hurricane Idalia.

“Universal Orlando Resort theme parks including Universal Studios Florida, Universal Islands of Adventure and Universal Volcano Bay are planning to open and operate as normal at 9:00 am on Wednesday, Aug. 30,” the company said in a statement Tuesday. “However, we will not offer our usual Early Park Admission benefit for on-site hotel guests, select Annual Passholders and other select travel trade clients on this day while our teams prepare the parks for opening after the storm. Our hotels remain operational as they focus on taking care of our guests.”

Like Disney, Universal Orlando Resort’s severe weather policy states that if a state of emergency or a hurricane or tropical storm warning is issued by the National Hurricane Center for the Orlando area or your place of residence, you can reschedule or cancel your Universal reservations with “no cancellation or change fees imposed.”

The Walt Disney Co. is the parent company of ABC News.

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(NEW YORK) — Dozens of the nation’s most prominent business leaders called for federal aid and speedy processing of work permits to address an influx of asylum seekers in New York City.

The arrival of more than 100,000 migrants from the Southern border has pitted some local and state officials against President Joe Biden, setting off a high-profile dispute over proper treatment of the asylum seekers and who should pay for it.

More than 120 executives — including JPMorgan Chase CEO Jamie Dimon, Pfizer CEO Albert Bourla and BlackRock CEO Larry Fink — signed a letter to Biden and Congressional leaders that characterized the New York business community as “deeply concerned” over the “humanitarian crisis.”

The business leaders backed a request made by Democratic New York Gov. Kathy Hochul on Thursday calling on Biden to provide funds for the migrants’ healthcare, transportation, education and housing costs as well as expedited work authorizations.

Government support for migrants will cost $12 billion over the next three years, New York City Mayor Eric Adams, who has also called for federal aid, said earlier this month.

The estimate came days after a line of migrants formed on the sidewalk outside of an intake center in midtown Manhattan at the Roosevelt Hotel. The migrants slept outside for days before they gained temporary shelter elsewhere.

In the letter published on Monday, top executives said responsibility for addressing the migrant crisis should fall entirely on the federal government.

“Immigration policies and control of our country’s border are clearly a federal responsibility; state and local governments have no standing in this matter,” the executives said.

Citing a persistent labor shortage, the executives said migrants bearing expedited work permits could access jobs in a host of industries.

The U.S. economy held 8.8 million job openings last month, data released by the Bureau of Labor Statistics on Tuesday showed.

“Employers are prepared to offer training and jobs to individuals who are authorized to work in the United States,” the executives said.

The call from executives arrived on the same day that reports surfaced of letters sent by the Biden administration to Adams and Hochul rebuking criticism that the federal government had fallen short in efforts to help address the crisis. Politico first reported on the letters.

Rather, the struggle to accommodate the asylum seekers owes primarily to “structural issues” of “governance and organization” in the day-to-day operations within the city and state, Homeland Security Secretary Alejandro Mayorkas reportedly said.

Aiming for a comprehensive resolution, the executives on Monday called for “bipartisan action” in Washington D.C. but acknowledged that such a solution would “take time.”

“In the interim, we urge you to take immediate action to better control the border and the process of asylum and provide relief to the cities and states that are bearing the burdens posed by the influx of asylum seekers,” the executives said.

The letter drew backing from additional high-profile CEOs, such as Blackstone CEO Stephen Schwarzman, Ernst & Young CEO Carmine Di Sibio and Citi CEO Jane Fraser.

It comes as business leaders face an increasingly fraught political environment as they weather Republican-led attacks over issues like socially conscious investing and diversity, equity and inclusion programs, former company executives and advocacy group leaders previously told ABC News, drawing on conversations with C-suite officials at large companies.

This month, a rating agency downgraded U.S. credit for the second time in the nation’s history. Fitch Ratings cited the ballooning U.S. debt load and a weakening of governance, as well as the Jan. 6 attack on the U.S. Capitol, as considerations in their decision.

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