Gasoline, auto retailing boost U.S. producer prices

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. producer prices increased solidly in October, driven by surging costs for gasoline and motor vehicle retailing, suggesting that high inflation could persist for a while amid tight global supply chains related to the pandemic.

The Federal Reserve last week restated its belief that current high inflation is “expected to be transitory.” A tightening labor market as millions remain at home is adding to price pressures, which together with shortages of goods sharply restrained economic growth in the third quarter.

The Fed this month started reducing the amount of money it is injecting into the economy through monthly bond purchases.

“The acceleration in inflation may not fade as quickly as previously thought, particularly for businesses because of the global supply-chain issues,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Elevated inflation is turning up the heat on the Fed but they haven’t shown signs of buckling as they will stomach higher inflation to get the labor market back to full employment quickly.”

The producer price index for final demand rose 0.6% last month after climbing 0.5% in September, the Labor Department said on Tuesday. That reversed the slowing trend in the monthly PPI since spring. In the 12 months through October, the PPI increased 8.6% after a similar gain in September.

Economists polled by Reuters had forecast the PPI advancing 0.6% on a monthly basis and rising 8.7% year-on-year.

More than 60% of the increase in the PPI last month was due to a 1.2% rise in the prices of goods, which followed a 1.3% jump in September. A 6.7% surge in gasoline prices accounted for a third of the rise in goods prices. There were increases in the prices of diesel, gas and jet fuel as well as plastic resins.

Wholesale food prices dipped 0.1% as the cost of beef and veal tumbled 10.3%. Prices for light motor trucks fell as the government introduced new-model-year passenger cars and light motor trucks into the PPI.

Exorbitant motor vehicle prices have accounted for much of the surge in inflation as a global semiconductor shortage linked to the nearly two-year long COVID-19 pandemic has forced manufactures to cut production, leaving virtually no inventory.

Services gained 0.2% last month after a similar rise in September. An 8.9% jump in margins for automobiles and parts retailing accounted for more than 80% of the increase in services. The cost of transportation and warehousing services jumped 1.7%, also reflecting snarled supply chains.

Surveys from the Institute for Supply Management this month showed measures of prices paid by manufacturers and services industries accelerating in October. Manufacturers complained about “record-long raw materials lead times, continued shortages of critical materials, rising commodities prices and difficulties in transporting products.”

Data on Wednesday is expected to showed strong gains in consumer prices in October, according to a Reuters survey of economists. Stocks on Wall Street retreated from record highs. The dollar was steady against a basket of currencies. U.S. Treasury prices rose.

PORT CONGESTION

There is congestion at ports and widespread shortages of workers at docks and warehouses. There were 10.4 million job openings as of the end of August. The workforce is down 3 million from its pre-pandemic level.

Worker shortages were underscored by a report from the NFIB on Tuesday showing almost 50% of small businesses reported job openings they could not fill in October.

Also on Tuesday, Fed Chair Jerome Powell emphasized the U.S. central bank’s commitment to maximum employment, telling a virtual conference on diversity and inclusion in economics, finance and central banking that “an economy is healthier and stronger when as many people as possible are able to work.”

Wholesale prices of apparel, footwear and truck transportation of freight also rose last month as did the costs of food and alcohol retailing, hospital outpatient care as well as machinery, equipment parts and supplies.

Excluding the volatile food, energy and trade services components, producer prices shot up 0.4%. The so-called core PPI gained 0.1% in September. In the 12 months through October, the core PPI rose 6.2%. That followed a 5.9% advance in September.

Construction prices surged 6.6%, the largest gain since the series was incorporated into the PPI data in 2009.

“As companies feel the squeeze from higher energy and labor costs, as well as persistent logistics issues, producer price increases should be robust in the coming months,” said Will Compernolle, a senior economist at FHN Financial in New York.

Details of the PPI components, which feed into the personal consumption expenditures (PCE) price index, excluding the volatile food and energy component, were mixed. The core PCE price index is the Fed’s preferred measure for its flexible 2% target. Healthcare costs increased 0.4%. Airline tickets rebounded 0.3%, but portfolio management fees dropped 2.2%.

Though the October CPI data is still pending, economists believed that the core PCE price index moved higher last month after increasing 3.6% year-on-year in September.

“For now, we think the core PCE price index will be up 3.8% year-on-year in October,” said Daniel Silver, an economist at JPMorgan in New York.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

U.S. says worried about increase in attacks by ISIS-K in Afghanistan

WASHINGTON (Reuters) -The United States is worried about an uptick in attacks by Islamic State’s affiliate in Afghanistan and remains deeply concerned about al Qaeda’s ongoing presence there, U.S. Special Representative for Afghanistan Tom West said on Monday.

He spoke to reporters by telephone from Brussels, where he briefed NATO allies on U.S. talks with the Taliban and held consultations on stabilizing Afghanistan following the Islamist militants’ takeover in August and the U.S. troop withdrawal.

West, who is due to travel on to Pakistan, India and Russia for more consultations, said the United States is preparing for the next round of talks with the Taliban in Doha, but he did not give a date.

With winter approaching, impoverished Afghanistan has emerged from all-out war into a humanitarian crisis as millions face growing hunger amid soaring food prices, a drought and an economy in freefall, fueled by a shortage of hard cash.

The Taliban also are confronting increasing attacks by its ideological foe, Islamic State-Khorasan Province, or ISIS-K, the regional Islamic State affiliate.

West said Washington is “worried about the uptick in ISIS-K attacks, and we want the Taliban to be successful against them. When it comes to other (militant) groups, look, al Qaeda continues to have a presence there that we’re very concerned about.”

Al Qaeda’s presence “is an issue of ongoing concern for us in our dialogue with the Taliban,” he continued.

U.S. officials believe that ISIS-K could develop the ability to stage attacks outside of Afghanistan within six to 12 months and that al Qaeda could do the same within one to two years.

On other issues, West said that Washington is not seriously considering reopening its Kabul embassy for now, and wants to see the Taliban “establish a record of responsible conduct” before assessing that option.

(Reporting by Humeyra Pamuk and Jonathan Landay; editing by Jonathan Oatis)

U.S. calls on nations to set bold targets for offshore wind

(Reuters) – A top Biden administration official on Thursday challenged nations to join the United States in setting aggressive goals to expand electricity production from offshore wind.

Interior Secretary Deb Haaland issued the call during an appearance at the United Nations climate change conference in Glasgow.

The administration of President Joe Biden has moved swiftly this year to support a nascent offshore wind industry in the United States, a key part of its plan to decarbonize the power sector by 2035 and address global warming.

But it has stumbled in its effort to restrict fossil fuel development on federal lands after a court in June ordered the government to resume drilling auctions that were paused by Biden in January.

“We are in an exciting time – and the Biden-Harris administration is taking bold action to advance clean energy to make people’s lives better and build a more sustainable future,” Haaland said. “Together, we need to set ambitious goals and commit the resources to get it done.”

The White House earlier this year set a target of deploying 30 gigawatts of offshore wind energy along every U.S. coastline by 2030. That would be enough electricity to power 10 million homes.

The 30-GW goal is roughly the amount that already exists in Europe’s two-decade old industry, but is a tall order for a nation that currently has just two small offshore wind farms.

Interior permitted what is expected to be the first major U.S. offshore wind farm, the 800 megawatt Vineyard Wind project off the coast of Massachusetts, in May.

(Reporting by Nichola Groom; Editing by Marguerita Choy)

FBI believes U.S. faces equal threats from domestic extremists and Islamic State -official

By Mark Hosenball

WASHINGTON (Reuters) – U.S. law enforcement and security agencies believe domestic extremists, notably white supremacists, pose a violent threat in the United States similar to that of Islamic State militants, top U.S. security officials told Congress on Wednesday.

Concern about racially motivated domestic extremists had prompted the FBI to elevate the threat to a level equal with that posed by the Islamist militants, said Timothy Langan, the assistant director who heads the counterintelligence division.

Langan told a House Intelligence subcommittee the Federal Bureau of Investigation had detected a significant increase in the threat of violence from domestic extremists over the last 18 months.

He said the bureau was conducting around 2,700 investigations related to domestic violent extremism, and there had been 18 lethal attacks targeting U.S. religious institutions in which 70 people had died in recent years.

The FBI has engaged with tech companies regarding their role in fueling extremism, has successfully disrupted planned acts of violence and will continue to “try to close the gap” on its inability to legally decode encryptions on mobile phones.

John Cohen, acting undersecretary for Intelligence and Analysis in the Department of Homeland Security, told the subcommittee that racial superiority and “hatred of immigrants” were major threat concerns.

He said his department believes the biggest domestic threat is posed by lone offenders and small groups indoctrinated in extremist ideology. The threat is fueled by a blend of extremist beliefs and personal grievances, he said.

Cohen noted that domestic extremists conduct so much discussion openly on social media that covert collection of intelligence on the threats they pose may often not be necessary to spot the threats.

Some Republican members of the House subcommittee suggested U.S. spy agencies should not be collecting information on U.S. political activity unless there is a connection to foreign actors.

(Reporting by Mark Hosenball; Editing by Howard Goller)

U.S. begins effort to vaccinate young children against COVID-19

By Carl O’Donnell and Maria Caspani

(Reuters) -The United States on Wednesday began administering the COVID-19 vaccine to children ages 5 to 11, the latest group to become eligible for the shots that provide protection against the illness to recipients and those around them.

On Tuesday, the U.S. Centers for Disease Control and Prevention recommended the Pfizer Inc/BioNTech SE shot for broad use in that age group.

Only a limited number of the 15 million shots being distributed now will be available on Wednesday. They are expected to be more widely accessible at pediatrician’s offices, children’s hospitals and pharmacies next week.

The big national pharmacy chains, Walgreens Boots Alliance, CVS Health and Rite Aid are among those offering appointments for this weekend.

Virginia Commonwealth University Health received the vaccine on Tuesday but will probably not start administering it until next week because of logistics and safety protocols, Director of Pharmacy Services Rodney Stilner told Reuters.

“For us to be able to receive the vaccine and even start today would just be like, almost impossible,” he said.

While about 58% of Americans are fully vaccinated against COVID-19, some 28 million children under 12 have not been eligible until now.

The 10-microgram shot of the Pfizer/BioNTech vaccine authorized for school-age kids – a third the strength given to adolescents and adults – offers protection from the Delta variant of the virus that has led to thousands of pediatric hospitalizations.

‘MUCH EASIER, MUCH SAFER’

The vaccine, shown to be more than 90% effective at preventing symptomatic infection in children, also provides an avenue for fewer quarantines or school closures and more normal activities and freedoms.

“I think it’s going to make the issue of schools much easier, much safer,” White House chief medical adviser Dr. Anthony Fauci said in an interview with CNN on Wednesday.

Still, it remains unclear how many parents will jump at the chance. Even many who have been vaccinated themselves are more divided over whether to vaccinate their own younger children, given that severe COVID-19 is much less common for them.

There were no new safety issues in Pfizer’s study of the vaccine in thousands of children, but there is also no long-term data for its use.

The U.S. Food and Drug Administration authorized the Pfizer/ BioNTech vaccine for children aged 5 to 11 years on Friday. A few other countries, including China, are already vaccinating children. The European Union and Canadian regulators are currently considering Pfizer’s application for the vaccine in this younger age group.

So far, only Pfizer’s shot has been authorized for use in the United States for those under age 16.

Moderna Inc has delayed its request for authorization for its vaccine for children aged 6 to 11 and is waiting on an FDA review of safety data in connection with its application for 12- to 17-year old’s.

The states with the highest adult COVID-19 vaccination rates are preparing bigger pushes to get children inoculated than states where hesitancy remains strong, potentially widening the gaps in protection nationwide, public health officials and experts said.

COVID-19 vaccines have emerged as yet another issue exposing deep political fault lines in the United States that led to opposing stances on vaccinations, face covering and other pandemic restrictions in various parts of the country.

California, New York and Washington state, all led by Democratic governors who have promoted vaccination and mask-wearing, are setting up mobile sites and high-volume vaccination clinics for children, spokespeople for the public health departments of those states said.

California has also mandated that school-age children get a COVID-19 vaccine once their age group is eligible, a measure being considered in New York and Washington.

Republican state governors have largely resisted measures such as mask mandates or vaccine requirements in workplaces, schools and public venues. More than a dozen states, including Florida and Texas, have tried to block schools from imposing such requirements themselves.

(Reporting by Carl O’Donnell; additional reporting and writing by Maria Caspani; Editing by Caroline Humer, Jonathan Oatis and Bill Berkrot)

U.S. CDC advisers recommend COVID-19 vaccine for young children

By Michael Erman

(Reuters) -Advisers to the U.S. Centers for Disease Control and Prevention (CDC) on Tuesday unanimously supported broad use of Pfizer and BioNTech’s COVID-19 vaccine in children ages 5 to 11, with shots potentially going into young arms as soon as Wednesday.

They said the benefits of vaccination outweigh the risks of the vaccine. Much of their discussion stemmed from rare cases of heart inflammation that have been linked to the vaccine, particularly young men.

CDC Director Rochelle Walensky must sign off on recommendations before the United States can begin administering the vaccine to children in the age group. The U.S. Food and Drug Administration granted emergency use authorization of the vaccine in 5-11 year old’s on Friday.

The FDA authorized a 10-microgram dose of Pfizer’s vaccine in young children. The original shot given to those age 12 and older is 30 micrograms.

At the outset of the meeting Walensky said that pediatric hospitalizations had surged during the recent wave driven by the Delta variant of the coronavirus.

The risk from COVID-19 “is too high and too devastating to our children and far higher than for many other diseases for which we vaccinate children,” she said.

Walensky said school closures have had detrimental social and mental health impacts on children.

“Pediatric vaccination has the power to help us change all of that,” she said.

The U.S. government and Pfizer have already begun distributing the vaccine in preparation for a widespread rollout for children, many of whom are back in school for in-person learning.

Earlier this week, the White House said the United States has enough supply of the Pfizer/BioNTech vaccine for all 28 million children aged 5 to 11. While some children may be able to get their first shots as soon as Wednesday, the plans is for the U.S. pediatric vaccine program to be running at full strength by next week, a Biden administration official said.

Only a few other countries, including China, Cuba and the United Arab Emirates, have so far cleared COVID-19 vaccines for children in this age group and younger.

(Reporting by Michael Erman in New Jersey, Julie Steenhuysen in Chicago and Manas Mishra, Manojna Maddipatla in Bengaluru; Editing by Bill Berkrot)

COVID-19 still rages, but some U.S. states reject federal funds to help

By Andy Sullivan

(Reuters) – As the resurgent COVID-19 pandemic burns through the rural U.S. state of Idaho, health officials say they don’t have enough tests to track the disease’s spread or sufficient medical workers to help the sick.

It’s not for want of funding.

The state’s Republican-led legislature this year voted down $40 million in federal aid available for COVID-19 testing in schools. Another $1.8 billion in pandemic-related federal assistance is sitting idle in the state treasury, waiting for lawmakers to deploy it.

Some Idaho legislators have accused Washington of overreach and reckless spending. Others see testing as disruptive and unnecessary, particularly in schools, since relatively few children have died from the disease.

“If you want your kids in school, you can’t be testing,” said state Representative Ben Adams, a Republican who represents Nampa, a city of about 100,000 people in southwestern Idaho.

Meanwhile, the state is reporting the fifth-highest infection rate in the United States, at 369 confirmed cases per 100,000 people, according to the U.S. Centers for Disease Control and Prevention.

Schools in at least 14 of Idaho’s 115 districts, including Nampa, have had to close temporarily due to COVID-19 outbreaks since the start of the year, according to Burbio, a digital platform that tracks U.S. school activity.

Idaho’s experience illustrates how political ideology and polarization around the COVID-19 epidemic have played a role in the decision of mostly conservative states to reject some federal funding meant to help locals officials battle the virus and its economic fallout.

For example, Idaho was one of 26 Republican-led states that ended enhanced federally funded unemployment benefits before they were due to expire in September. Gov. Brad Little claimed that money was discouraging the jobless from returning to work. At least six studies have found that the extra benefits have had little to no impact on the U.S. labor market.

Idaho has also rebuffed $6 million for early-childhood education, as some Republicans in the state said mothers should be the primary caretakers of their children.

The state also did not apply for $6 million that would have bolstered two safety-net programs that aid mothers of young children and working families. Little’s administration said it had enough money already for those programs.

Idaho has accepted some federal COVID-19 help. In fact, the rejected funds are just a small portion of the nearly $2 billion in federal relief Idaho has spent since March 2020 to fight the virus and shore up businesses and families, state figures show.

But hundreds of millions more remain untouched. Idaho has deployed just $780 million, or 30%, of the $2.6 billion it received under the federal American Rescue Plan Act, signed into law in March.

Neighboring Washington state, by contrast, has parceled out nearly three-quarters of the $7.8 billion it received under that legislation. Washington has recorded roughly 60% as many cases per capita as Idaho since the start of the pandemic, according to the U.S. Centers for Disease Control and Prevention.

Some in Idaho are exasperated that a state of just 1.8 million people would turn down a dime of assistance when it’s struggling to tame the pandemic.

With no testing in place, nurses in Nampa schools rely mainly on parents to let them know when a child is infected, the district’s top nurse, Rebekah Burley, told the school board in September. She said she needed three or four more staffers to track existing cases and attempt to keep people quarantined.

“We’re tired, we are stressed, and something needs to change,” she said.

REJECTING FEDERAL MONEY

The refusal by red states to accept some types of federal aid that would benefit their constituents isn’t new.

For example, a dozen Republican-controlled states have rejected billions of dollars available through the landmark 2010 Affordable Health Care Act to cover more people under the Medicaid health program for the poor, which is jointly funded by the federal government and the states. Lawmakers from these places contended their states couldn’t afford to pay their share of an expansion. (Idaho initially was among them, but its voters opted in to the Medicaid expansion through a 2018 ballot referendum, bypassing state leaders.)

That same dynamic has played out during the coronavirus crisis. Since March 2020, Congress has approved six aid packages totaling $4.7 trillion under Republican and Democratic administrations, including the bipartisan CARES Act in March 2020 and the Democratic-backed American Rescue Plan Act this year.

Florida and Mississippi didn’t apply for benefits that would give more money to low-income mothers of young children. Four states, including Idaho, North Dakota and Oklahoma, opted not to extend a program that provided grocery money to low-income families with school-age kids in summer months.

Iowa, like Idaho, turned down federal money for COVID-19 testing in schools. New Hampshire rejected money for vaccinations.

Republican lawmakers in Idaho, like those elsewhere, cite concerns about local control, restrictive terms attached to some of the aid, and the skyrocketing national debt.

“We are chaining future generations to a lifetime of financial slavery,” said Adams, the Idaho legislator.

Yet even before the pandemic, Idaho long relied on Washington for much of its budget. Federal funds account for 36% of state spending in Idaho, according to the National Association of State Budget Officers, above the national average of 32%.

State officials say they have enough money to handle the COVID-19 crisis for now.

Critics say Idaho’s reluctance to use more federal aid is a symptom of its hands-off approach to COVID-19 safety. Few public schools require masks, and local leaders have refused to impose mask mandates, limits on indoor gatherings and other steps to contain the virus.

“There’s a lot of people in our legislature and some local officials who really have not taken this seriously,” said David Pate, the former head of St. Luke’s Health System, the state’s largest hospital network.

Idaho has one of the lowest vaccination rates in the nation, with only 55% of adults and teens fully immunized, compared to 67% nationally.

HOSPITALS FULL

COVID-19 is pummeling Idaho even as cases have plunged in much of the nation. Intensive-care units statewide are full, forcing hospitals to turn away non-COVID patients. At least 627 residents died of the disease in October, well above the previous monthly death toll of last winter, records show.

Idaho received $18 million through the American Rescue Plan to hire more public-health workers, but lawmakers did nothing with that money this year.

Some local public health departments say they do not have enough staff to track the virus. “We have a lot of people doing two or three jobs right now,” said Brianna Bodily, a spokesperson for the public-health agency serving Twin Falls, a southern Idaho city of 50,000. The department is working with a 12% smaller budget than last year.

Such staff shortages have contributed to a backlog of test results statewide, which the Idaho Department of Health and Welfare says is hurting its ability to provide an up-to-date picture of the disease’s prevalence.

With funding bottled up in the state capitol, Little, the governor, announced in August that he would steer $30 million from a previous round of COVID-19 aid to school testing.

The Nampa school district has requested some of that money but has yet to set up a testing program, spokeswoman Kathleen Tuck said. Roughly 20% of the district’s students were not attending class regularly in the first weeks of the school year due to outbreaks, according to superintendent Paula Kellerer.

Nampa resident Jaci Johnson, a mother of two children, ages 10 and 13, said she and other parents have been torn over whether to send their children to class, due to the potential risk.

“Do we feed our kids to the lions, or do we keep them home and make them miserable?” Johnson said.

(Reporting by Andy Sullivan; Editing by Scott Malone and Marla Dickerson)

U.S. administers 423.9 million doses of COVID-19 vaccines – CDC

(Reuters) – The United States has administered 423,942,794 doses of COVID-19 vaccines in the country as of Tuesday morning and distributed 521,502,845 doses, the U.S. Centers for Disease Control and Prevention said.

Those figures are up from the 423,005,384 vaccine doses the CDC said had gone into arms by Nov. 1 out of 518,561,375 doses delivered.

The agency said 221,961,370 people had received at least one dose while 192,726,406 people were fully vaccinated as of 6:00 a.m. ET on Tuesday.

The CDC tally includes two-dose vaccines from Moderna and Pfizer/BioNTech, as well as Johnson & Johnson’s one-shot vaccine.

About 19.8 million people have received a booster dose of either Pfizer, Moderna or Johnson & Johnson’s COVID-19 vaccine. Booster doses from Moderna and Johnson & Johnson were authorized by the U.S. health regulator on Oct. 20.

(Reporting by Mrinalika Roy in Bengaluru)

From Boeing to Mercedes, a U.S. worker rebellion swells over vaccine mandates

By Tina Bellon and Eric M. Johnson

AUSTIN/SEATTLE (Reuters) – In Wichita, Kansas, nearly half of the roughly 10,000 employees at aircraft companies Textron Inc and Spirit AeroSystems remain unvaccinated against COVID-19, risking their jobs in defiance of a federal mandate, according to a union official.

“We’re going to lose a lot of employees over this,” said Cornell Beard, head of the local Machinists union district. Many workers did not object to the vaccines as such, he said, but were staunchly opposed to what they see as government meddling in personal health decisions.

The union district has hired a Texas-based lawyer to assist employees and prepare potential lawsuits against the companies should requests for medical or religious exemptions to vaccination be denied.

A life-long Democrat, Beard said he would no longer vote for the party. “They’ll never get another vote from me and I’m telling the workers here the same thing.”

The clock is ticking for companies that want to continue gaining federal contracts under an executive order by Democratic President Joe Biden, which requires all contractor employees be fully vaccinated against COVID-19 by Dec. 8.

That means federal contract workers need to have received their last COVID-19 shot at least two weeks before the deadline to gain maximum protection, according to U.S. government guidance.

With a three-week gap between shots of the Pfizer/BioNTech vaccine, workers must get the first jab by Wednesday. If the government holds fast to its deadline, it is already too late to choose Moderna’s vaccine, which is given in two doses four weeks apart. Workers could opt to get Johnson & Johnson’s single-shot vaccine until Nov. 24 to meet the deadline.

Vaccines remain by far the most effective way to prevent COVID-19 hospitalizations and deaths, particularly faced with the extremely contagious Delta variant of the virus that can cause infections even among those fully vaccinated.

Despite vocal opposition from some, vaccine mandates have been effective at shrinking the rates of the unvaccinated and convincing the reluctant to roll up their sleeves.

Several big employers such as Procter & Gamble, 3M and airlines including American Airlines and JetBlue have imposed mandates. In some industries, including among food workers, unions have supported vaccine requirements.

But the mandate has stirred protests from workers in industries across the country, as well as from Republican state officials.

Opposition to the mandate could potentially lead to thousands of U.S. workers losing their jobs and imperil an already sluggish economic recovery, union leaders, workers and company executives said.

More legal clashes are likely over how companies decide requests for vaccination exemptions.

For the companies, time is getting tight, though the Biden administration has signaled federal contractors will not have to immediately lay off unvaccinated workers who miss the Dec. 8 deadline.

Under government guidance published on Monday, companies will have flexibility over how to implement the mandate, which may allow them to avoid mass firings.

“A covered contractor should determine the appropriate means of enforcement with respect to its employee,” the guidance said.

For Boeing Co in the United States, more than 7,000 workers have applied for religious exemptions and around 1,000 are seeking medical exemptions, people familiar with the matter told Reuters. That amounts to some 6% of the plane maker’s roughly 125,000 U.S employees.

‘ILLEGAL, IMMORAL AND IMPRACTICAL’

At a rally last week outside Boeing property in Auburn, south of Seattle, many of the three dozen workers gathered in driving rain said they would rather be escorted off Boeing property on Dec. 8 than take a vaccine. Others said they would pursue early retirement.

“The mandate is illegal, immoral and impractical,” said one veteran Boeing program analyst who attended the rally. “We are standing together against a company and government trampling on our rights.”

Many legal experts have said vaccine mandates in the interest of public health are legal. The U.S. Supreme Court has rejected several challenges to mandates, with the high court last week turning away a healthcare worker who sought a religious exemption to a COVID-19 vaccine mandate.

The rebellion has put Boeing executives in a bind. The company could lose skilled staff, but must comply with a presidential order.

A Boeing spokesperson said the company was committed to maintaining a safe working environment for its employees.

The order’s provision for religious and medical exemptions is causing more tension.

Two Textron workers who requested religious exemptions told Reuters the company’s human resources representatives quizzed them on the name of their church leaders and asked detailed questions about their faith.

Textron declined to respond to questions, but in a statement said it was obligated to comply with Biden’s order and was taking steps to do so.

“Employees who are unable to receive the COVID-19 vaccination due to a medical condition or sincerely held religious belief are being provided an opportunity to request an accommodation from this requirement,” Textron said.

Spirit AeroSystems did not respond to a request for comment.

Raytheon Technologies’ CEO Greg Hayes last week warned the U.S. defense firm will lose “several thousand” employees because of the mandate.

A group representing FedEx Corp, United Parcel Service Inc and other cargo carriers said it would be virtually impossible to have all their workforces vaccinated by the deadline.

Some companies have imposed vaccine mandates even absent immediate government regulation.

Mercedes-Benz USA, the U.S. unit of German carmaker Daimler AG which is not a U.S. government contractor, told employees in an October email seen by Reuters that proof of vaccination against COVID-19 would become a condition of employment beginning Jan. 4.

The carmaker said it implemented the move in anticipation of a separate U.S. government vaccine mandate that would apply to businesses with at least 100 employees, affecting some 80 million workers nationwide.

Less than half of the company’s workers at U.S. import processing centers are vaccinated and many refuse to get a shot, according to a source familiar with the matter.

Mercedes USA in a statement said it had given employees 90-day notice to fulfill the requirement, adding that two thirds of its U.S. employees – not including factory workers in Alabama – have provided proof of vaccination to date.

“We expect that the vast majority of our employees will provide proof of vaccination before the deadline,” the company said.

(Reporting by Tina Bellon in Austin, Texas and Eric M. Johnson in Seattle, Washington; Editing by Joe White and Bill Berkrot)

With prayers and signs, abortion demonstrators converge on U.S. Supreme Court

By Jan Wolfe

WASHINGTON (Reuters) – Shortly before the U.S. Supreme Court began heard arguments in a major abortion dispute out of Texas, a group of demonstrators who oppose abortion joined together outside the stately white marble neoclassical building to pray for the nine justices, listing each one by name.

Hundreds of people in support and opposition to a restrictive Texas abortion law gathered on Monday outside the courthouse on a mild autumn day in the U.S. capital. The justices heard arguments in challenges by President Joe Biden’s administration and abortion providers to the measure, which imposes a near-total abortion ban – prohibiting it after six weeks of pregnancy – and empowers private citizens enforce it.

Abortion opponents held signs saying, “Let their hearts beat,” and played Christian music. Abortion rights supporters held signs saying “Bans off our bodies” and “Abortion is essential.”

Some of the law’s supporters cast the debate in religious terms.

The Reverend Patrick Mahoney, chief strategy officer for the anti-abortion group Stanton Public Policy Center, said, “Our strength is local. You can go to every community in the country right now and find grandmas in church basements knitting baby booties or doing bake sales. There’s this collective energy bubbling in our movement right now.”

Regarding the law’s private-enforcement mechanism, Mahoney said, “Is that the way I would have gone? Probably not. But it’s saving innocent lives. Overall I think it’s innovative and creative.”

The law puts enforcement in the hands of private citizens, empowering them to sue anyone who performs or assists a woman in getting an abortion after cardiac activity is detected in the embryo. Individual citizens can be awarded a minimum of $10,000 in successful lawsuits.

Julia Deluce, a coordinator with the group Students for Life, said she was advocating for the rights of “pre-born children,” adding, “They are human. They are part of our species. And they deserve our protection.”

Abortion rights demonstrators voiced alarm over the Texas law, which bans abortion at a point in time when many women do not yet realize they are pregnant. Abortion was legalized nationwide in the Supreme Court’s Roe. v. Wade decision. A series of restrictive Republican-backed abortion laws have been passed by states in recent years.

Washington resident Martha Dickey said she has been advocating for abortion rights since the 1970s.

“I found out what happened in Texas and I was really upset,” Dickey said. “… It stops the chance for a woman to be free to decide what happens to her own body.”

Amy Hagstrom Miller, founder of the Whole Women’s Health Clinic abortion provider that challenged the Texas law, said, “A ban like this doesn’t change the fact that people need abortions. It just changes the kind of abortions they can have.” She said she hopes the justices understand the impact of their decisions “on real people’s lives.”

(Writing by Jan Wolfe; Editing by Will Dunham)