Daily Business Report: Friday, June 3, 2022
California may give fast food workers
power to bargain with their industry
By Alejandro Lazo and Jeanne Kuang | CalMatters
In Summary
Push to pass a labor-sponsored bill is a key ‘Fight for $15’ priority and a potential organizing foothold in an industry where unionization has long been elusive
For three days in April, a striking group of Jack in the Box cashiers and cooks shut down their Sacramento County store. They were calling for better schedules, more staff and for management to repair a broken ice maker.
They also called for a transformation of their industry.
Donning red T-shirts from the decade-old “Fight for $15” minimum wage campaign, the workers chanted for the passage of Assembly Bill 257.
AB 257 threatens to upend the fast food franchise business model in California. It would create a state-run council to negotiate wages, hours and working conditions for an industry that, according to federal data, employs more than 700,000 people in the state.
Under the bill, employers would be responsible for the regulations, but so would the fast food corporations that partner with franchise owners.
The measure is set to be heard in a state Senate committee next week, when organizers plan a series of coordinated strikes at fast food shops in San Diego, Los Angeles, Oakland and Sacramento.
“AB 257 will force them to change — will hold them accountable,” said Adonida Briseño, 26, a Jack in the Box worker who took part in the April strike.
The Service Employees International Union’s push to pass AB 257 is one of the most significant organizing efforts in its “Fight for $15” campaign, a chance for a foothold into a low-wage industry where unionization has long been elusive.
TOP PHOTO: Fast-food workers and other SEIU members marched to the Capitol to deliver postcards and petitions in support of Assembly Bill 257 to the governor’s office on May 31, 2022. (Photo by Fred Greaves for CalMatters)
San Diego rents increased sharply over the past month
Rents in San Diego increased 1.8 percent month-over-month in May, compared to a 1.2 percent increase nationally, according to a report by Apartment List. Month-over-month growth in San Diego ranks #24 among the nation’s 100 largest cities.
Year-over-year rent growth in San Diego currently stands at 19.2 percent, compared to 6.5 percent at this time last year. Year-over-year growth in San Diego ranks #23 among the nation’s 100 largest cities. Rents in San Diego are up by 24.4 percent since the start of the pandemic in March 2020.
Median rents in San Diego currently stand at $1912 for a 1-bedroom apartment and $2464 for a two-bedroom.
This is the fifth straight month that the city has seen rent increases after a decline in December of last year. San Diego’s year-over-year rent growth leads the state average of 14.9 percent, as well as the national average of 15.3 percent.
Check out the full report here, and for a complete look at national trends, read our national report
Other large cities nationwide show more
affordable rents compared to San Diego
As rents have increased sharply in San Diego, a few similar cities nationwide have seen rents grow more modestly, says Apartment List. Compared to most other large cities across the country, San Diego is less affordable to renters.
• San Diego’s median two-bedroom rent of $2,464 is above the national average of $1,320. Nationwide, rents have grown by 15.3 percent over the past year compared to the 19.2 percent increase in San Diego.
• While San Diego’s rents rose sharply over the past year, many cities nationwide also saw increases, including New York City (+29.5 percent), Miami (+26.5 percent), and Phoenix (+20.5 percent).
• Renters will generally find more expensive prices in San Diego than most similar cities. For example, Dallas has a median 2BR rent of $1,426, where San Diego is more than one-and-a-half times that price.
USD to make tuition free this fall for
most military-connected students
The University of San Diego is essentially making USD tuition free for most military-connected students through the Yellow Ribbon Program starting in Fall 2022.
Currently, students (excluding active-duty) receiving the 100 percent eligible Chapter 33 Post 9/11 G.I. Bill are granted additional funding for tuition through the Yellow Ribbon Program at USD.
The Yellow Ribbon Program funding has previously been capped for undergraduate, graduate, doctoral and law students. But starting in Fall 2022, the cap will be lifted. Also starting in Fall 2022, the Yellow Ribbon Program at USD will be available to active service members and spouses of active service members.
Currently, there are approximately 800 military-connected students at USD, which include active-duty, veterans, spouses, dependents and Reserve Officers Training Corps (ROTC) members.
Chula Vista firm to help maintain Navy ships
in San Diego under contracts worth $1.2 billion
GovCon Wire
Chula Vista-based Southcoast Welding and Manufacturing has won spots on a pair of multiple-award contracts worth potentially $1.19 billion combined to repair, maintain and update non-nuclear surface combatant and amphibious ships that are visiting or stationed at the U.S. Navy’s San Diego base.
Naval Sea Systems Command received seven offers for the lots I and II contracts covering support to CG, DDG and AMPHIB ship classes, the Department of Defense said Wednesday.
The service obligated $10,000 at the time of award and expects the ordering period to conclude in November 2026.
Chula Vista, California-based SCW&M was awarded positions on lots III and IV contracts in late November 2021 to perform support work on LHA, LHD, LPD and LSD vessels.
Viasat to host Veterans Transition Workshop
Carlsbad-based and SDNEDC Member Viasat Inc. will hold a Veteran’s Transition Workshop taking place on Thursday, June 23 at their Carlsbad office location. During this workshop attendees will have the opportunity to receive mentorship, resources, and tools to help support their transition out of the military and into the work force.
Veterans and spouses are welcome. Reserve your spot by June 9 to be considered for the workshop, as seating is limited. This workshop is not a hiring event, rather an opportunity for us to provide mentorship, support, and resources during your transition out of the military.
Learn more and reserve a spot.
New retail tenants arrive at The Forum in Carlsbad
A number of new retail tenants have arrived at The Forum shopping center in Carlsbad. Known for being Carlsbad’s “strongest retail market,” The Forum has made a positive comeback from the pandemic. Officials are hopeful for vacancy rates to decrease as the year continues and believes the number will soon reach its pre-COVID-19 number.
To learn more about these new North County businesses and views on the retail market click here.
Realtor.com May housing report: Inventory
stages comeback while home prices soar
New data suggests the U.S. housing market hit a turning point in its supply struggle in May, as active inventory recorded the first year-over-year increase since June 2019, according to the Realtor.com Monthly Housing Trends Report released Thursday. At the same time, the median national home price soared to an all-time high of $447,000 and buyers snatched up listings a week faster than last year.
The U.S. inventory of active listings grew year-over-year for the first time since June 2019, with this comeback driven by two key trends. First, new listings reached the highest level of any month in nearly three years, as rising numbers of sellers might be more confident in pursuing plans to list than last spring when COVID vaccines were just rolling out. Second, higher housing costs are spurring a moderation in buyer demand. This is reflected in May’s bigger year-over-year declines in pending listings – those at various stages of the selling process that are not yet sold – compared to April, a sign of softening in the turnover rate of for-sale homes.
U.S. Food and Drug Administration
extends Phexxi shelf life to four years
Evofem Biosciences Inc. announced that the U.S. Food and Drug Administration (FDA) has formally extended the shelf life of Phexxi from three to four years. Phexxi is used for the prevention of pregnancy.
“The FDA’s approval to extend Phexxi’s shelf life to four years speaks not only to the safety of our ingredients but also to the exceptional standards applied in the manufacturing of Phexxi,” said Saundra Pelletier, chief eecutive officer at Evofem. “As we continue our long-term strategy to reduce operating expenses, this shelf life extension provides a significant and valuable operational efficiency, solidifying our ability to manage inventory within the growing U.S. market and as we evaluate our strategic opportunities for the global licensing of Phexxi.”
In May 2020, the FDA approved Phexxi. The initial approval included a 30-month shelf life for Phexxi, which was extended to 36 months in April 2022 by the FDA. Earlier this week, the FDA formally approved Evofem’s ‘Prior Approval’ supplement for the shelf-life extension to 48 months.
BAE System’s Automated Flight Planning
Service deployed to the cloud
BAE Systems’ Mobility Air Forces Automated Flight Planning Service, or MAFPS, is transitioning operations to Cloud One, one of the first mission-critical applications to complete a cloud migration. BAE Systems is a pioneer for the U.S. Air Force, providing warfighters with improved capabilities for mission management and agile airspace planning.
“The cloud environment will increase the operational availability of MAFPS’ best-in-class services for our customers,” said Meg Redlin, director of Mission Systems at BAE Systems. “The system’s automation streamlines flight planning for the future of airspace operations.”
The development and production of this technology takes place in San Diego and Fairview Heights, Ill.
Atlas Ocean Voyages opens 2023-24
Antarctica Expedition Season for sale
Atlas Ocean Voyages has opened its winter 2023-24 Antarctica season, offering experienced travelers more once-in-a-lifetime expeditions to this remote and bucket-list destination for a third season.
From November 2023 through March 2024, small luxury expedition ships World Navigator and World Traveller will return to the Seventh Continent to deliver breathtaking landscapes, penguins, seals, whales, seabirds, and other wildlife that can only be witnessed there.
Travelers can choose among 23 voyages, ranging from nine to 20 nights, nearly all departing round-trip from Ushuaia, Argentina. World Navigator will offer Antarctic Peninsula voyages while World Traveller embarks on more comprehensive Antarctic regional expeditions. For more information about Atlas Ocean Voyages’ new winter 2023-24 season, visit www.AtlasOceanVoyages.com.
Sempra completes sale of non-controlling
interest in Sempra Infrastructure partners
Sempra announced that it has completed the sale of a 10 percent non-controlling interest in Sempra Infrastructure Partners (Sempra Infrastructure) for $1.73 billion in cash to a subsidiary of Abu Dhabi Investment Authority (ADIA). The transaction, previously announced in December 2021, implies an enterprise value for Sempra Infrastructure of $25.9 billion, including its proportionate ownership share of net debt of approximately $8.6 billion.
With the closing of the referenced transaction, Sempra now owns a 70 percent controlling stake in Sempra Infrastructure, and KKR and ADIA own a 20 percent and 10 percent non-controlling interest, respectively.
Clearspeed joins Guidewire Insurtech Vanguards program
Clearspeed, a leader in AI voice analytics, announced that the company has joined the Guidewire Insurtech Vanguards program, a new initiative led by property and casualty cloud platform provider Guidewire, to help insurers learn about the newest insurtechs and how to best work with them.
Through its exceptionally high level of fraud detection accuracy (97 percent), Clearspeed helps carriers decide quickly and confidently whether claims should go straight through or be flagged for further follow up.
“Clearspeed’s powerful AI-enabled technology is helping insurers identify the risk of fraud using voice analytics assessment,” said Guidewire Chief Evangelist Laura Drabik. “We are thrilled to welcome Clearspeed and its innovative early detection technology to our program.”
