Business news in brief - Post Register

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• Business news in brief - Post Register
• Nearly 50,000 GM workers strike: Live updates - CNN
• Ducey goes to DC to urge USMCA ratification - Chamber Business News

Business news in brief - Post Register Posted: 16 Sep 2019 08:00 PM PDT Massage Envy owner opens yoga studio and parkour training center nearby Favad Malik, owner of Massage Envy at 3047 S. 25th East, has opened two new "separate but complementary businesses" — Flip & Twist and Yoga London — nearby at 3019 S. 25th East, a company news release said. The business will host a grand opening at 11 a.m. Saturday. Flip & Twist and Yoga London will open to the public with regular class schedules beginning Monday, the release said. Flip & Twist, billed as a family agility training center, offers recreational gymnastics that focus on parkour, the release said. It also will offer "ninja warrior" classes to teach skills such as those showcased on the television program "American Ninja Warrior." Flip & Twist and Yoga London share an entrance. Yoga London will be open seven days a week with classes starting at 5:30 a.m. daily. Flip & Twist will offer classes from 8 a.m. to 10 p.m. Both businesses are offering specials related to the grand opening. For information, visit yogalondon.us and flipandtwistidahofalls.com. Idaho Falls Chamber accepting Business of Distinction nominations The Greater Idaho Falls Chamber of Commerce is accepting nominations for the Business of Distinction Gala 2019. The event will be held from 6 p.m. to 9 p.m. Nov. 1 at The Waterfront at Snake River Landing, 1220 Event Center Drive. The Gala recognizes local businesses "who have had a positive impact and contributed to the social and economic well-being of the area," the chamber's website said. The nomination deadline is Sept. 30. Self-nominations are allowed. Nominations can be made at tinyurl.com/IF-chamber-gala. Tickets start at $50 and sponsorship opportunities remain available. For information, contact Emily Slike by calling 208-523-1010, Option 3, or emailing programs@idahofallschamber.com. INL software engineer to address Young Professionals Network Kaleb Houck, an Idaho National Laboratory software engineer, will be the featured speaker at the upcoming Young Professionals Network meeting. The meeting will be held from 6 p.m. to 8 p.m. Oct. 8 at the College of Eastern Idaho, 1600 S. 25th East. The event is free to members and CEI students with an ID and $10 for nonmembers. RSVP at idahofallschamber.com/event/october-ypn/.

Nearly 50,000 GM workers strike: Live updates - CNN Posted: 16 Sep 2019 07:12 PM PDT [unable to retrieve full-text content]Nearly 50,000 GM workers strike: Live updates  CNN 46000 workers from the United Auto Workers (UAW) union went on strike against General Motors on Sunday night.

Ducey goes to DC to urge USMCA ratification - Chamber Business News Posted: 16 Sep 2019 11:35 AM PDT Arizona Governor Doug Ducey is in Washington, D.C. urging Congress to ratify the United States-Mexico-Canada Agreement (USMCA). "America and Arizona's businesses are beyond ready to ratify the USMCA," Ducey said at a U.S. Chamber of Commerce press conference on Sept. 16. "There's 44 other American states that enjoy either number one or two trading relationship[s] with Mexico and Canada. So with the USMCA our country has a once in a generation opportunity to take our North American trade relationships to an entirely new level." The USMCA was signed by President Donald Trump as well as his Mexican and Canadian counterparts in November of 2018. The trade agreement, also known as NAFTA 2.0, will update and modernize current trade agreements between the three North American countries. However, it still needs to pass through Congress in order to be ratified. "Congress should and will, in my opinion, pass the agreement this fall before the end of the year and eliminate and questions about the future with our two largest export markets and our largest trading partners," U.S. Chamber of Commerce and Industry CEO Tom Donohue said at the press conference. "We're going to keep the pressure on together until this job gets done." Ducey has been a strong proponent for the ratification of USMCA since its inception, saying it is crucial for the economies of North America, the U.S. and Arizona. In February, Ducey sent a letter to Arizona's congressional delegation urging members to vote yes on ratifying the USMCA because the state's trade with the two countries has resulted in $19 billion in combined economic impact with Mexico and Canada, $9.7 billion in Arizona exports to Canada in 2017 and more than 236,000 Arizona jobs. "While the North American Free Trade Agreement was a historic agreement and visionary for its time, it is nearly 25-years-old. The business world has evolved tremendously during that time, but our trade policies have not kept up," Ducey wrote in the letter. "As we seek to secure Arizona's economic future, a strong trade deal with Mexico and Canada is crucial. I urge you to work with your colleagues in Congress to move towards ratification of the USMCA as quickly as possible." Both of Arizona's U.S. senators have expressed support for the trade agreement as well as four of Arizona's nine U.S. representatives, including Rep. Greg Stanton (D-CD 9) who recently held a tele-town hall with Ducey regarding the USMCA. "The truth is, on this one, we're really close — that's the good news in the current situation, that I think the Democrats and the House want to get to 'yes' and are working very hard to get to 'yes,'" Stanton said during the call. "I believe that these conversations are happening very quickly, and I believe we should get a vote on this USMCA before Congress before the end of the year." Ducey and the Arizona-Mexico Commission recently created a website with resources to help people understand the USMCA as well as encourage civic engagement. "In Arizona, we launched a new website where people can visit and make their voices heard — USMCAnow.org," Ducey said. "This website has trade facts and resources for every state in the country. I also want to encourage everyone across the country to reach out to their members of Congress and urge them, in fact feel free to demand from them that they publicly support the ratification of USMCA." "Mexico has just passed China to become America's number one trading partner and Mexico is Arizona's largest trading partner," Ducey said. "If we care about Mexico and Canada, if we care about United States jobs and economic opportunity for our citizens, we will ratify the USMCA… Now is the time and with everyone's help I know we can get this done."

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Equitas Holdings stock tanks after Sebi rejects listing proposal for SFB - Business Standard

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• Equitas Holdings stock tanks after Sebi rejects listing proposal for SFB - Business Standard
• Florida Bill Targets Windshield Repair Incentives - CBS Miami
• How the country's new pipeline dispute could shake up oil business - CBC News
• Bitauto Announces Receipt of Preliminary Non-Binding "Going Private" Proposal - MarTech Series

Equitas Holdings stock tanks after Sebi rejects listing proposal for SFB - Business Standard Posted: 16 Sep 2019 01:16 PM PDT The shares ended the session nearly 13 per cent lower at Rs 102 as analysts slashed price targets for the stock, citing so-called "holding company (holdco) discount". To comply with the Reserve Bank of India's (RBI's) guidelines, the company has to list Equitas Small Finance Bank by March next year. Equitas Holdings had approached the regulator with a scheme of arrangements, proposing to hive off and list the SFB, which is its fully-owned subsidiary. The proposal was turned down by the Sebi as it wasn't in compliance with a circular on 'scheme of arrangements'. Instead of re-drafting the scheme of arrangements, Equitas Holdings said it will soon initiate the IPO process and get the SFB listed before the end of the financial year. The IPO plan, analysts said, caught investors off guard; it would entail a deeper holding company (holdco) discount for Equitas Holding. Investec Securities slashed the price target on the stock from Rs 190 to Rs 140, saying the "holdco discount to be applied on a larger stake". Had Sebi approved the listing without an IPO proposal, Equitas Holding would have ended up with a 53 per cent stake in Equitas SFB. In the IPO, Equitas Holding is likely to dilute just 10 per cent as there is no immediate capital requirement. Therefore, the holdco discount will be on the 90 per cent stake, instead of the earlier projection of 53 per cent. Why holdco discount? Holdco discount essentially means that the mark-to-market value of the subsidiary doesn't get fully reflected in the valuation of the holding company. There are several listed companies with a holding company structure. Some of them are Grasim Industries, Larsen and Toubro (L&T), and Mahindra & Mahindra (M&M). To illustrate: The current market cap of Grasim Industries is only Rs 47,115 crore, even as the value of its 60 per cent stake in Ultratech Cement is valued at Rs 66,000 crore. Similarly, L&T's market cap doesn't fully reflect the value of its stake in the three listed arms — L&T Infotech, L&T Finance Holding, and L&T Technology Services. So why is there a holdo discount in the first place? Essentially, the Street applies the discount as the holding company has no direct control over the cash flows and dividends of the subsidiary. Also, the dividend paid by the subsidiary doesn't entirely reach the parent due to taxes. There is no thumb rule for the exact the holdco discount. It keeps varying on underlying factors, such as the nature of business and the dividend payout policy. Holdco discount in the case of Equitas Analysts said the Street could assign Equitas Holdings a similar holdco discount as IDFC Ltd, which is the holding company for IDFC First Bank. "There are two reasons for a holdco discount — dividend tax leakage and capital allocation concerns. None of these exists in the case of Equitas Holdings given it will own 90 per cent stake in the bank, and the bank is unlikely to distribute earnings in the near term. In the absence of any fundamental reason, the market looks to surrogates, and IDFC, with about 50 per cent holdco discount, becomes a benchmark," wrote Investec analysts Nidhesh Jain and Utsav Gogirwar in a note. Kotak Institutional Equities in a note said the concerns over holdco discount in the case of Equitas Holdings are unfounded. "In our view, the progress in resolving these issues is encouraging, though not in the most efficient way as there would be two companies listed for the same business... The recent news flow regarding the listing of the bank has been a dampener for stock performance given concerns about a possible holding company discount—we believe the concerns are not justified in view of a negligible erosion of value, if any," Kotak analysts wrote in a note.

Florida Bill Targets Windshield Repair Incentives - CBS Miami Posted: 16 Sep 2019 09:30 AM PDT TALLAHASSEE (CBsMiami/NSF) – A South Florida lawmaker has filed a proposal that would prevent auto-glass shops from offering cash, gift cards and other incentives to motorists to attract windshield-repair work. The bill, filed by Rep. Richard Stark, D-Weston, could be an opening salvo in a renewed debate about the controversial insurance practice known as assignment of benefits. In assignment of benefits, policyholders sign over claims to contractors who then pursue payment from insurers. Lawmakers during the 2019 session placed restrictions on assignment of benefits for property-insurance claims and debated restrictions for windshield claims. Ultimately, lawmakers did not address the windshield issue, but state Chief Financial Officer Jimmy Patronis has already said he will pursue it during the 2020 legislative session, which starts January 14th. Insurance companies contend the so-called AOB process is riddled with fraud and excessive litigation, while contractors say it helps ensure that claims are paid properly. Stark, an insurance broker, pushed a similar bill during the 2019 session to try to prevent windshield-repair firms from providing incentives to attract business. The proposal was approved by the House Insurance & Banking Subcommittee but did not advance further. Supporters of the bill pointed to concerns about unnecessary windshield claims that could lead to higher premiums for motorists. But opponents said the bill would hurt small windshield-repair businesses that compete with larger corporations that have arrangements with insurance companies. (©2019 CBS Local Media. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The News Service of Florida contributed to this report.)

How the country's new pipeline dispute could shake up oil business - CBC News Posted: 16 Sep 2019 09:57 AM PDT Think "pipeline dispute" and the mind may conjure up images of environmental protest, pro-oil rallies and bickering politicians. But there's another kind of dispute simmering over pipelines these days — one that could shake-up the sector for years to come and is dividing opinions in the Canadian oilpatch.  It may also offer an early test of the new Canada Energy Regulator (CER), which replaced the National Energy Board only a few weeks ago. "This could be a market-altering event," said Jackie Forrest, senior director at the ARC Energy Research Institute. "We have to tread very carefully in terms of understanding what the implications of this massive change will be for the industry and the markets." At issue is a proposal by Calgary-based Enbridge to revamp its Mainline system, changing how it assigns space on the pipeline network responsible for most of Canada's oil transportation. Enbridge says the proposed changes to the Mainline system are in response to what it's hearing from stakeholders, including shippers, producers, refiners and marketers in both Canada and the United States. (Jim Mone, File/The Associated Press) For decades, the Mainline has operated as a 100 per cent common carrier.  "Every month, anyone that wants to ship on the line can say that they want to ship and how much they want to ship and that space gets divvied up," Forest said. "It's open for everyone." Enbridge's new proposal is to reduce the common-carrier portion of the Mainline to 10 per cent, while 90 per cent would be designated for companies signed up for longer contracts of up to 20 years. The company says it's responding to what it's heard from its many stakeholders, including shippers, producers, refiners and marketers in both Canada and the United States. "They want to be able access the same services from Enbridge that are currently available on competing pipelines," said Guy Jarvis, the company's executive vice president of liquids pipelines. "Priority access, toll certainty and the potential to contract for terms of up to 20 years." It's not a plan that sits well with everyone, though. In August, Enbridge announced a two-month "open season," a period when it will accept bids from shippers who want to sign longer-term contracts for priority transport on the Mainline. Several companies have spoken out in opposition to the Enbridge plan, including Suncor, Shell Canada and MEG Energy, as well as the Explorers and Producers Association of Canada (EPAC). (John Woods/Canadian Press) This spurred several companies to stake out their opposition, including Suncor, Shell Canada and MEG Energy, as well as the Explorers and Producers Association of Canada (EPAC). Suncor, the country's largest oil and gas producer by market capitalization, wants the Canada Energy Regulator (CER) to put the brakes on the open-season process. In its submission to the federal regulator, Suncor says the open season effectively compels shippers to bid for contracted space even if they consider the terms and conditions of service and tolls to be "unclear, uncertain, inappropriate, unfair or unjust and unreasonable." It asks the regulator to declare that Enbridge cannot offer contract carriage, or require binding contracts be signed, until the terms and conditions of the new system, including tolls, receive regulatory approval. EPAC, whose members represent about 20 per cent of Canadian oil and gas production, is concerned about the timing of the Enbridge proposal when some producers are already facing struggles getting oil to market. "There is a severe shortage of pipeline capacity, a high level of apportionment, and no certainty as to future capacity additions," association president Tristan Goodman wrote in a submission to the CER. "There are no other alternatives for the captured shippers. This puts our members in an untenable position of having to contract for firm service for fear of being blocked out of capacity, and not because it is in their best interest to do so." Still, there are other businesses that support a revamp, including oilsands giant Cenovus Energy. Jackie Forrest, senior director of research with the Arc Energy Research Institute, says the Enbridge proposal 'could be a market-altering event.' (Colleen Underwood/CBC) Cenovus told the regulator it believes the changes will provide certainty for shippers moving volumes of oil to downstream markets, which includes refineries. It also agrees with Enbridge that the regulator should not interrupt the established open-season process, used to gauge whether there is shipper interest in the service. "The harm that will arise from upending the established practice will be yet another indication to companies and investors that the regulatory process in Canada is uncertain and may be adjusted on an ad hoc basis," Cenovus wrote. Enbridge fired back in its own submissions it would be "unjust and unreasonable" to be required to obtain regulatory approval of its proposed Mainline changes before it had the chance to gauge shipper interest in the service. No other pipeline in Canada has been required to follow such a process, Enbridge says. Opponents of the Enbridge proposal hope the CER will make the decision to pause the project in the coming days. But first the regulator's six-member commission may have to decide whether it has the jurisdiction to take such action. With the open season set to end on Oct. 2, the clock is ticking. It's a decision the industry will be watching closely.

Bitauto Announces Receipt of Preliminary Non-Binding "Going Private" Proposal - MarTech Series Posted: 16 Sep 2019 12:16 AM PDT Bitauto Holdings Limited, a leading provider of internet content & marketing services, and transaction services for China's fast-growing automotive industry, announced that its Board of Directors (the "Board") has received a preliminary non-binding proposal letter, dated September 12, 2019, from Tencent Holdings Limited and Hammer Capital (together, the "Buyer Group"), proposing to acquire all of the outstanding ordinary shares of Bitauto not already owned by the Buyer Group or their affiliates for US$16 in cash per American depositary share ("ADS") in a going private transaction (the "Transaction"). A copy of the proposal letter is attached as Annex A to this press release. The Board will form an independent special committee to consider the Transaction. Marketing Technology News: Tata Elxsi to Demonstrate Streaming Services on Microsoft Azure at IBC 2019 The Board cautions the Company's shareholders and others considering trading in its securities that the Board just received the non-binding proposal letter from the Buyer Group and no decisions have been made with respect to the Company's response to the Transaction. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.  The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law. Bitauto Holdings Limited is a leading provider of internet content & marketing services, and transaction services for China's fast-growing automotive industry. Bitauto's business consists of three segments: advertising and subscription business, transaction services business and digital marketing solutions business. Marketing Technology News: Renowned Leaders of Evolving Tech Industry Join Act-On Executive Team Bitauto's advertising and subscription business provides a variety of advertising services to automakers through the bitauto.com website and corresponding mobile apps which provide consumers with up-to-date automobile pricing and promotional information, specifications, reviews and consumer feedback. Bitauto also provides transaction-focused online advertisements and services for promotional activities to its business partners, including automakers, automobile dealers, auto finance partners and insurance companies. Bitauto offers subscription services via its SaaS platform, which provides web-based and mobile-based integrated digital marketing solutions to new car automobile dealers in China. The SaaS platform enables automobile dealer subscribers to create their own online showrooms, list pricing and promotional information, provide automobile dealer contact information, place advertisements and manage customer relationships to help them reach a broad set of purchase-minded customers and effectively market their automobiles to consumers online. Marketing Technology News: Showpad Brings TRANSFORM 2019, the World's Largest Sales Enablement Conference to London and Chicago

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Olathe native grows dog service business through Instagram - KSHB

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• Olathe native grows dog service business through Instagram - KSHB
• Crack in chlorine tank forces business evacuations in Chandler - AZCentral
• Uber’s AB 5 defense that its drivers aren’t core to its business is “preposterous,” experts say - Vox.com
• Business Briefs September 17, 2019 - Glenwood Springs Post Independent
• How Do You Get Ahead In The Airport Business? Easy — Start Out Ahead, New Report Says - Forbes

Olathe native grows dog service business through Instagram - KSHB Posted: 16 Sep 2019 02:29 PM PDT KANSAS CITY, Mo. — Olathe native Katie Kenton is a full-fledged dog lover. She loves spending time with her furry friends, but when it came to leaving them, it became a problem. "We took a long vacation and ended up boarding my dog, Ghost," Kenton said. "I think it was more traumatizing for me than him — not being able to check in and get pictures and updates." Kenton took matters into her own hands and quit her 9-to-5 job to start her own dog service business, Katie's Kennel. "I wanted to create something that I would want to use if I went on vacation," Kenton said. Her first task as a business owner was to create an Instagram account as a way to update dog owners on their dogs walks or stays. Her social media efforts paid off: In just one year since launching her business, Kenton is now in charge of 14 walkers and has thousands of followers on her account. She says she owes a big part of her success to Instagram. "I always say a picture is worth a thousand words, and they love to see what we are doing," Kenton said. "I think being visual has helped our business because they can kind of relate." Business experts said the social media platform is growing businesses across the nation. "Whenever you put yourself out there and you share stories where people can connect to you, they purchase from you because they like you," said Jessica Powell, director of experiences at Kansas City Startup Foundation. Powell also recommends more business owners to take advantage of the social media tool. "You are going to learn where your customer is at and you are going to perfect your voice and be able to hone in on who brings you the money," Powell said. Kenton said her one piece of advice to other business owners is to build a good brand, and success will come along with it. "Your branding will set you apart from other people," Kenton said. "Just being able to advertise what you do is important."

Crack in chlorine tank forces business evacuations in Chandler - AZCentral Posted: 16 Sep 2019 03:08 PM PDT Share This Story! Let friends in your social network know what you are reading about Crack in chlorine tank forces business evacuations in Chandler Incident occurred in area of Elliot Road and Arizona Avenue, officials said. Post to Facebook Sent! A link has been sent to your friend's email address. Posted! A link has been posted to your Facebook feed. CLOSE Gas leak  (Photo: The Republic) Several Chandler businesses were forced to evacuate Monday afternoon when a 1,500-pound container of chlorine cracked and began leaking gas, according to authorities. The tank was being delivered to a business in the 2900 block of North Nevada Street, which is southeast of Elliot Road and Arizona Avenue, Chandler police said. Chandler Fire Department hazardous materials crews were called to control the leak. The incident also restricted traffic in the area along Elliot Road, but that was lifted by 3:30 p.m. There were no reports of injuries. Further details were not available. Chemical leak spawns hazmat evacuations in Chandler | Arizona News | https://t.co/7gPO8C1YW3https://t.co/U0F2yvsjQh — Keely Eyal-Blackburn 💋 (@FlaRhps) September 16, 2019 Read or Share this story: https://www.azcentral.com/story/news/local/chandler-breaking/2019/09/16/crack-chlorine-tank-forces-business-evacuations-chandler/2347008001/ More Stories Phoenix artists don't have to make LGBTQ wedding invitations, court rules Sept. 16, 2019, 3:51 p.m. 2 Scottsdale buildings to face the wrecking ball this fall Sept. 16, 2019, 10 a.m. Phoenix likely done with 110-plus temperatures Sept. 16, 2019, 9:12 a.m. Brothers, 13 and 11, found safe after going missing 2 days ago, say Phoenix police Sept. 16, 2019, 10:37 a.m. Phoenix police searching for 2 missing brothers Sept. 15, 2019, 8:45 p.m. Arizona lawmaker apologizes for remarks about minorities and guns Sept. 16, 2019, 11:15 a.m.

Uber’s AB 5 defense that its drivers aren’t core to its business is “preposterous,” experts say - Vox.com Posted: 16 Sep 2019 01:40 PM PDT Last week, California lawmakers passed AB 5, a bill that's expected to upend the business models of gig economy companies like Uber and Lyft that depend on the cheap, relatively unregulated labor of a contractor workforce. Experts predict that the law could cost Uber an additional $500 million in annual operating costs alone if it ends up compelling the company to reclassify its workers as employees, who would be eligible for minimum wage, health care, and overtime protection. But Uber and Lyft say they're not worried. In fact, both ride-hailing companies say the new law doesn't force them to make the costly change of turning their drivers into employees. That's because to do so they would have to consider drivers as part of their "usual course" of business. Uber has said its drivers aren't because the app is really a tech platform for "digital marketplaces" and not primarily an employer of drivers. Labor groups and politicians are seething over Uber's argument. In interviews with Recode, they said they see it as another way that Uber and Lyft (which also said it won't change its business) are trying to get out of providing basic employment protections to their hundreds of thousands of drivers in California. "They're digging in their heels like a child would and saying, 'we refuse to change,'" said Veena Dubal, a law professor at UC Hastings who researches the gig economy. "[Uber's chief legal officer] Tony West on some level probably realizes how preposterous it is, but that's the line they've taken, and they have to be consistent with it." [Uber] "on some level probably realizes how preposterous it is, but that's the line they've taken, and they have to be consistent with it" Uber declined to expand on its legal reasoning to Recode, but it's made this argument before. It goes something like this: Uber's core business is providing technology that connects people to each other. Drivers are free to accept or decline rides as they please, so they are not employees of Uber but rather customers of its marketplace, just like the people who take rides. Despite how nonplussed Uber and Lyft might seem, the stakes for both companies are high. The political battle over AB 5 comes at the same time that both Uber and Lyft have been struggling in the stock market since going public. Two weeks ago, shares of both firms were trading at an all-time low. And meanwhile, both firms have been bleeding cash: Uber lost more than $5.2 billion last quarter and Lyft lost almost $650 million. Both ride-hailing giants have met with politicians, the governor, and union leaders to try to negotiate on AB 5, and they launched aggressive campaigns against the bill (which some drivers say have been misleading) that threatened that drivers could lose the ability to work flexible hours if they indeed became employees. A few weeks ago, Uber, Lyft, and DoorDash announced they're pouring $90 million into a 2020 California ballot initiative that would directly appeal to voters to undo the legislation. So, does Uber have a case when it says its drivers aren't a core part of its business? Or is it just delaying the inevitable regulation that will fundamentally change its business and add to its financial woes? Several legal and labor experts told Recode that Uber's AB 5 defense isn't going to work. But even though the argument may not hold up in court, it's a savvy political move to buy time as the company deals with public pressure over its labor practices. "If nothing else — whether or not it passes the smell test — it buys them the time and buys them leverage," said Bradley Tusk, an early Uber investor and regulatory adviser who has worked with the company in the past. "If you say, 'Yep, we're gonna sue the hell out of Uber,' that could take three, four, [or] five years to take place." The legal challenge ahead Regardless of the timeline, Uber and Lyft are facing an uphill legal battle against AB 5. "[Uber and Lyft] are making the claim — which is preposterous — that they're more like Craigslist, that they provide a space for buyers and sellers to meet," said Rebecca Givan, a professor of labor relations at Rutgers University. "But in fact, they set the prices, what car you can use, all kinds of things. They're not more like Craigslist; they're an employer," she said. A prominent gig worker rights labor lawyer, Shannon Liss-Riordan, who has been battling Uber around employee misclassification since 2013, has already filed a class action lawsuit against Uber for misclassifying drivers as workers instead of employees, including a request for an injunction that would force Uber to reclassify its workforce right away. "Uber and other gig economy companies are thumbing their nose at the law and refusing to do it," said Liss-Riordan. "So we are asking the court to immediately require these companies to reclassify their drivers." And thanks to a last-minute addition by legislators, city and state attorneys can also take legal action against Uber and Lyft for not following AB 5's classification rules. San Francisco City Attorney Dennis Herrera has signaled that he's willing to do that. But these new legal threats are just part of such challenges for Uber and Lyft, which have both faced class action lawsuits from drivers over their labor practices. (As Uber's Tony West said during a recent press call, "Uber is no stranger to legal battles.") So far, there is some precedent to suggest Uber's case isn't entirely preposterous, at least based on several decisions in arbitration, a form of private court often used by companies to resolve employment disputes. In one case from 2018 that Uber specifically pointed to, an arbitrator ruled that an Uber driver was not entitled to employee pay and benefits. "Uber was not, precisely speaking, in the business of providing rides, any more than a broker is in the business of providing property," wrote the arbitrator in his ruling. "It provided, instead, only exposure (albeit, very effective exposure) to the possibility that a rider will find a driver willing to provide a ride, and a driver will find a rider willing to be driven. The distinction is material." Uber noted in its S-1 filing back in April that it faces over 60,000 arbitration cases from drivers over employment classification issues. Since the rulings around those cases are largely private, it's hard to say if there's a true legal consensus or if Uber has chosen to highlight a few cases where it's been successful. But in public court rulings, judges have been less than favorable to Uber. A judge in California stated in 2015 that Uber's argument that drivers aren't a central part of its business "strains credulity," and another in New York expressed similar skepticism, according to the New York Times. Regardless of how the courts end up ruling, whether for or against Uber and Lyft, this could be a drawn-out legal battle. And that leaves plenty of time for the ride-hail companies to play politics in the meantime. Why it may be a bold political move While Uber's argument may not end up be a winning one, it is strategic in the short term. "I think from a political and practical standpoint, the path Uber is taking is smart," said Tusk. "While [Uber] ultimately may lose in court by saying our drivers are not a normal part of our business, they may forestall having to deal with this issue for a couple of years, at a time when their share prices are really suffering. More importantly, I think it gives them leverage to reopen legislation negotiations with California politicians." Tusk has openly criticized Uber's CEO Dara Khosrowshahi, who has taken a more outwardly cautious approach to leading the company, as compared to the "act first and beg for forgiveness later" strategy of the company's former CEO and founder Travis Kalanick. (Kalanick resigned in 2017 under pressure from investors.) "It's the first time we've seen Uber be aggressive about anything in a while," said Tusk. "I'm happy to see that side of the company coming out for once." "While [Uber] ultimately may lose in court by saying our drivers are not a normal part of our business, they may forestall having to deal with this issue for a couple of years" In the meantime, Uber and Lyft are actively trying to work with politicians and labor groups to write a follow-up piece of legislation that would undo or modify AB 5 by giving drivers some protections, such as the right to bargain collectively (although not necessarily as a union), and a minimum wage — in exchange for not being considered employees. That's in addition to the $90 million dollar ballot initiative that the companies are funding with DoorDash, which they characterize as a last resort if the companies can't reach a legislative deal with politicians. It makes sense that Uber's showing its teeth again — even if part of that strategy is downplaying the potential impact of AB 5. The law is expected to be game-changing for Uber and Lyft, as well as other gig economy companies like DoorDash and Postmates. It could allow millions of workers across industries (not just the app-based gig economy) to get the benefits they say they've been cheated out of for years, and the precedents it sets could spread to other states that are closely watching California's leadership on labor rights. If companies like Uber and Lyft are forced to treat hundreds of thousands of workers as full-time employees, they'll have to do the opposite of what their investors are calling for. Instead of cutting labor costs, companies will have to drastically add to these expenses as they try to become profitable. That might explain why Uber is pushing the limits of reason to avoid a radical restructuring of its business model. Another potential side effect of Uber's bold argument against AB 5 is that it risks further alienating labor leaders, politicians, and the general public, especially at a time when the company is trying to improve its favorability and regain trust with customers after the string of public scandals that have tainted its past.

Business Briefs September 17, 2019 - Glenwood Springs Post Independent Posted: 16 Sep 2019 08:03 PM PDT Giving for Good helps Ascendigo Opening a third branch in the Roaring Fork Valley, FirstBank announces "Giving for Good," an outreach program partnering with both the Carbondale Creamery and Café and Ascendigo Autism Services. During the month of September FirstBank will donate $5 to Ascendigo for every latte or cupcake purchased.  Ascendigo is celebrating its 15th anniversary this year and continues to empower those with Autism Spectrum Disorder (ASD) through adventure in the outdoors, skills development and coaching and in-home behavioral therapy for those with ASD.

How Do You Get Ahead In The Airport Business? Easy — Start Out Ahead, New Report Says - Forbes Posted: 16 Sep 2019 10:56 AM PDT Traffic at Fort Lauderale/Hollywood International Airport grew 60% since 2008, highest among major airports (Photo by: Jeff Greenberg/Universal Images Group via Getty Images) Universal Images Group via Getty Images How do you get ahead in the airport business?  The best way is to start out ahead, as a large hub airport, and then grow. The second-best way, according to a new report by Fitch, is to align with one of the newer, lower cost carriers – Spirit, Frontier or Allegiant – and hope to grow along with them. Unfortunately, the report says, the second course comes with risk, because the trio of ULCCs – for "Ultra low-cost carriers" — are more willing to abandon airports if they cannot profit or if business conditions change. Still, for now, during a period of record air travel, both approaches are working. Between 2008 and 2018, enplanements at large airports have grown 25.2 %s, while growing 16.5% at medium sized airports and 9.1% at small airports, according to the Fitch report, entitled 'Enplanement Growth Across All U.S. Hub Sizes,' which was released Monday The report said 2018 U.S. enplanements reached a record 1.0 billion, up 4.8% from 965 million in 2017, according to U.S. Department of Transportation figures. As air travel has recovered from the 2008-2009 recession, the report said, "Large hubs have enjoyed steady year-over-year growth, with only two years of traffic declines since 2005." Performance at small hubs (defined as having 500,000 to 2 million annual enplanements) and medium hub airports (between 2 million and 10 million enplanements) has been more volatile, particularly between 2010 and 2014. For now, however, "nearly all small and medium hub airports are now growing beyond pre-recession levels," the report said. "Only a few outlier smaller airports are not realizing these positive trends." In particular, "Since 2016-2018 and YTD 2019 data indicates that small and medium-hub airports are experiencing growth at or above many large hubs on a percentage change basis." The report says large hub airports experienced a less severe downturn following the 2008-2009 recession, with their expansion exceeding U.S. GDP growth by a multiplier of 1.3X. The correlation with GDP is easily explained because large hubs account for 73% of all enplanements. Large hubs include those with more than 10 million annual enplanements. Among the top 30 airports, the growth leaders between 2008 and 2018 were Fort Lauderdale Hollywood, 60%; Boston Logan, 56%; San Francisco, 53%; Seattle-Tacoma, 52% and LAX, 48%. Among the top five airports, Atlanta Hartsfield grew 19%; LAX, 48%; Chicago O'Hare, 18%; Dallas-Fort Worth 21% and Denver, 29%. The slowest growth among the top 30 was at Philadelphia, down 1%; Washington Dulles, up 2.5%; Detroit Metro, up 2.6%; Houston Intercontinental, up 5.6%, and Honolulu, up 6.3%.   Meanwhile, "Small and medium sized hubs exhibited lower correlation with GDP growth, suggesting they are more susceptible to local market trends and air carrier decisions," and more volatile in times of overall economic weakness or strength. Still, 'Sustainability of operations for these low-cost carriers is more uncertain than for legacy carriers and potentially more dependent on yield and route profitability,' said Fitch director Jeffrey Lack, in a prepared statement. New service may not be permanent, Lack warned. 'Small airports will need to plan very cautiously once airport incentives are eliminated, though the smaller market share for these low-cost carriers nationwide limits this risk for airports,' he said. Often, the report said, "ULCCs will initiate service as non-signatory to the airline use agreement, meaning that they could stop serving the airport at any time in exchange for paying rates and charges that are typically 10%-25% higher than rates paid by signatory airlines. The report listed a half dozen airports that have not been in the top level of beneficiaries from growing air travel. One category is former hub airports that lost connections when their principal carriers shrunk operations due to consolidation or bankruptcy or both. Examples include Cleveland, Cincinnati, and Memphis airports. Additionally, secondary hubs for legacy carriers at Detroit, Dulles and Philadelphia "have experienced the slowest recovery among large hub airports, and by 2018 had not recovered to 2007 peak levels," the report said. Philadelphia, a hub for American, "experienced at worst a 12% cumulative peak-to-trough decline, though the recovery has been slower than typical for large hub airports, reflecting the degree to which carrier decisions can impact enplanement growth," the report said. Cincinnati "fell victim to Delta's de-hubbing, which exacerbated the impact of the Great Recession, and left enplanements on a downward spiral through 2013." Still, Cincinnati, though still 45% below its recessionary enplanement level, is now growing. the report said. Enplanements have grown 46% over the last five years due to Southwest's entry and local market strength. Cleveland" is another medium-sized airport that stands at just 80% of its pre-recessionary peak" due to United's de-hubbing, the report said. However, Cleveland, now focused on local traffic, has grown 25% in four years. Among smaller airports, Long Beach has been the biggest winner. Its 2018 enplanement base of 1.9 million is about 33% above its recessionary low.  In 2016, the airport added nine flight slots, bringing the total to 50, and airlines took advantage. Other winners: Boise International, after losing 18% of its traffic in the recession, is now 15% above its pre-recessionary peak. Pensacola grew 16% in 2018 after growing 6% in 2017.

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