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GAO REPORT DETAILS DISCRIMINATION AGAINST OLDER WORKERS / JOB SERVICE OFFICE EMPLOYEE TOLD TO SORT OUT APPLICANTS OVER AGE 40

More from the Government Accountability Office - 05/18/2012

SENATE HEARING DETAILS PLIGHT OF OLDER WORKERS SHUNNED BY EMPLOYERS

More from the Emeritus Newsroom- In testimony Tuesday before the U.S. Senate Special Committee on Aging , National Employment LawProject, Executive Director Christine Owens, explained that older workers are disproportionately represented in the ranks of the long-term unemployed – in 2011, more than half of older jobless workers were out of work for at least six months (54.3%), and those high rates have continued into 2012. The trends stem from a range of factors including age discrimination, employers refusing to consider unemployed workers, and industry shifts that require older workers to realign their skills to today’s labor market.

“The prospects are dim for older workers who lose their jobs,” said Christine Owens, Executive Director of the National Employment Law Project. “They have the highest rates of long-term unemployment of any age group. They face pointed discrimination when they go looking for work, and they are especially vulnerable to financial instability. Congress needs to take extra steps to address the difficulties that some of the most seasoned members of the workforce are experiencing.”
In the first quarter of 2012, just over half of jobless workers ages 50 and older (50.7%) were long-term unemployed. Approximately four in ten, or 39.4 percent, had been out of work for at least one year. As the testimony documents, prolonged periods of unemployment can have a severe impact on older workers’ retirement prospects and later-life wellbeing.
The NELP testimony highlights the Fair Employment Opportunity Act of 2011 and the Protecting Older Workers Against Discrimination Act as two ways Congress can intervene, prevent and remedy much of the discrimination and challenges older workers experience.
The Fair Employment Opportunity Act of 2011 (FEOA), pending in both houses of Congress and introduced in the Senate by Aging Committee Member Senator Blumenthal, would preclude employers and job recruiters from excluding the unemployed from job consideration simply because of their unemployment status. Because long-term unemployed workers are disproportionately older, older workers are more likely to be affected by exclusionary hiring practices based on employment status.
The Protecting Older Workers Against Discrimination Act (POWADA) was introduced in March by Senators Harkin and Grassley, with Senator Leahy as a co-sponsor, to preserve the rights of older job applicants.

Senate Committee video webcast of hearing, click here - Senate hearing press release and direct link to studies, click here - National Employment Law Project statement, click here - 05/17/2012

FEDERAL JUDGE HALTS NEW UNION ELECTION RULES

More from the Emeritus Newsroom - U.S. District Judge James Boasberg, of the Washington DC Federal District Court, has struck down rules passed by the National Labor Relations board that would speed up the election process when workers decide they want to be represented by a union. The NLRB made the rules effective on April 30th, but were challenged by union opponents, who claimed the rules were passed with only two members voting, missing a third needed for a quorum. The third NLRB member refused to vote, thereby preventing a quorum and a win by members supporting the rule change. President Obama has since appointed two more members to the board, but Republicans are blocking the appointments, keeping the 2-1 voting dynamic in place, allowing for Republicans to prevent a quorum, and therefore any future rule changes they find objectionable.

Judge Boasberg stated that the NLRB could reinstate the rules, once the legal quorum is reached.

05/17/2012

VIDEO: BIPARTISAN CALL TO SOLVE LONG TERM UNEMPLOYMENT

More in video from PBS NewsHour (8 Minutes), click here - 05/15/2012

CENTRAL FREIGHT LINES, GENESCO & HEALTH MANAGEMENT GROUP AMONG LATEST EEOC DISCRIMINATION CASE UPDATES

More from the Emeritus Newsroom- According to the Equal Employment Opportunity Commission (EEOC), Central Freight Lines Inc. has agreed to settle an age discrimination lawsuit  brought by the EEOC for  $400,000.00 to be paid to eight former dockworkers.

According to the EEOC’s lawsuit  (Civil Action No. 3-10-cv-1954-K in U.S. District Court for the Northern  District of Texas, Dallas Division), Central Freight Lines, Inc. discriminated  against Ricky Curry, John Bean, Paul Elwell, Richard Harris, James Thurmond,  Keith Vessels, Purvis Carter and Reynaldo Tijerina by selecting them for  termination because of their age in an August 31, 2007, reduction in  force. The EEOC charged that the company  used a reduction-in-force as a ruse to fire eight dockworkers, some of whom had  worked at the company for 20 or more years and were approximately 50 years old  and older.

A consolidated suit filed by the  EEOC and the private parties alleged that workers were called names like  “grandpa,” “old farts” and “old bastards” by their supervisor, who also had  been tasked with preparing a list of the men to be terminated. According to the  EEOC, the company also changed its attendance and disciplinary policy so that  the men, who had not had more than a few disciplinary write-ups, were suddenly put  on corrective action and eligible for termination under the new policy.

The  company then replaced the older employees with younger hires.

Discriminating against an  individual because of his or her age violates The Age Discrimination in  Employment Act (“ADEA”) of 1967. The  EEOC filed suit after first attempting to reach a pre-litigation settlement. On the first day of a scheduled eight-day  trial, the attorneys for the parties reached agreement to settle the case by  Consent Decree filed with the Court and signed by U.S. District Court Judge Ed  Kinkeade on May 9, 2012.

In the Consent Decree, the company  agreed to pay $400,000 to the claimants and to train management and supervisory  personnel at the Central Freight Dallas and Ft.Worth Terminals on equal  employment opportunity policies and procedures.  The company will also commit to enforce a written policy against age  discrimination.

"It is an injustice to  terminate these loyal workers who gave so many years of their lives to Central  Freight," said William C. Backhaus, Senior Trial Attorney for the EEOC.  "Laying people off because of their age is a violation of federal  law."

“Central Freight treated these experienced  dockworkers like they were expendable,” said Suzanne M. Anderson, Supervisory  Trial Attorney. “This case shows that EEOC will remain vigilant in our  protection of older workers.”

IN ANOTHER CASE, apparel retailer Genesco, Inc. violated federal law when it fired a female employee instead of allowing her to return to work after having a baby, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

Leah Marshall began her employment in 2005 as a sales associate for the Genesco shoe store Journeys, in a shopping mall in Newark, Calif., and had been promoted to an assistant manager before taking her maternity leave in October 2007. According to the EEOC’s investigation, she was assured she could return to work after her child was born. However, in November 2007, just a few days after her child’s birth, she received a call informing her there was no longer a position for her. Her termination was effective December 2007.

“When I talked to my manager, I could not believe what I was hearing,” said Marshall. “I now had a child to support and no job. I had been dedicated and reliable employee, and it was devastating to be tossed aside just because I was a new mom.”

Pregnancy discrimination violates Title VII of the 1964 Civil Rights Act, as amended by the Pregnancy Discrimination Act of 1978. After first attempting to reach a voluntary settlement through conciliation efforts, the EEOC filed suit (EEOC v. Genesco, Inc., Civil Action No. CV 12 2220 DMR) in U.S. District Court for the Northern District of California. The agency seeks lost wages, damages for emotional distress, and punitive damages on behalf of Marshall, as well as injunctive relief such as training for company managers and employees, and compliance monitoring by the EEOC.

“All employers need to understand that sex discrimination includes discrimination based on pregnancy, childbirth and pregnancy-related conditions,” said EEOC Regional Attorney William Tamayo. “The EEOC has seen pregnancy- and childbirth-related claims increase along with the economic crisis, and so we will vigorously defend workers’ rights in this area.”

EEOC San Francisco District Director Michael Baldonado said, “Ms. Marshall was willing to return to work, wanted to work to support her family, and had performed well in her job. Working women should not be forced to choose between motherhood and their livelihood.” He noted that in February the EEOC held a public meeting in Washington concerning discrimination against pregnant women and workers with caregiving responsibilities. Material from this Commission meeting can be found at www.eeoc.gov/eeoc/meetings/2-15-12/index.cfm.

In a classic sex discrimination pay dispute, the EEOC reports Health Management Group, Inc. (HMG) of Akron, Ohio will pay $260,000 to settle a sex discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC’s suit charged that Krishna McCollins and Donna Davidson, both directors of franchise development, were paid less than a male who performed substantially equal work for HMG. Such sex-based wage discrimination violates the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. The lawsuit, EEOC v. HMG, et al., Civil Action No. 5:09CV01762, was filed by the EEOC in U.S. District Court for the Northern District of Ohio, Eastern Division, Akron, after the agency first attempted to reach a pre-litigation settlement through its conciliation process.

In addition to monetary relief, the consent decree settling the suit provides for training for all of HMG’s employees, managers, and supervisors on employee rights and employers’ obligations under the Equal Pay Act and Title VII and requires HMG to post an anti-discrimination notice to all employees. The decree also requires that HMG revamp its non-discrimination policies; implement discrimination complaint procedures; maintain records regarding complaints of discrimination received by HMG representatives; promote manager and supervisor accountability with regard to HMG’s anti-discrimination policies; and provide annual reports to the EEOC during the decree’s 30-month term.

“The EEOC will not tolerate discriminatory pay practices,” said Debra Lawrence, regional attorney for the EEOC’s Philadelphia District. “We are proud to announce this settlement, which comes in the wake of Equal Pay Day, an annual event which promotes public awareness of the continuing gender wage gap.” Equal Pay Day, which occurs on April 17, marks the end of the extra period of time that woman must work on the average in order to earn what a man did the year before.

Full text of Central Frieght case, click here - Full text of Genesco case, click here - Full text of Health Management Group case, click here - 05/14/2012

UNEMPLOYMENT DROPS TO 8.1% / HOWEVER, LABOR FORCE DECLINES BY 342,000

More from the Emeritus Newsroom - Nonfarm payroll employment rose by 115,000 in April, and the unemployment rate was little changed at 8.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in professional and business services, retail trade, and health care, but declined in transportation and warehousing.

Both the number of unemployed persons (12.5 million) and the unemployment rate (8.1 percent) changed little in April. Among the major worker groups, the unemployment rates for adult men (7.5 percent), adult women (7.4 percent), teenagers (24.9 percent), whites (7.4 percent), and Hispanics (10.3 percent) showed little or no change in April, while the rate for blacks (13.0 percent) declined over the month. The jobless rate for Asians was 5.2 percent in April (not seasonally adjusted), little changed from a year earlier. The number of long-term unemployed (those jobless for 27 weeks and over) was little changed at 5.1 million in April. These individuals made up 41.3 percent of the unemployed. Over the year, the number of long-term unemployed has fallen by 759,000.

The civilian labor force participation rate declined in April to 63.6 percent, while the employment-population ratio, at 58.4 percent, changed little. The number of persons employed part time for economic reasons (sometimes
referred to as involuntary part-time workers) was essentially unchanged in April at 7.9 million. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.In April, 2.4 million persons were marginally attached to the labor force, essentially unchanged from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 968,000 discouraged workers in April, about the same as a year earlier. (The data are not seasonally adjusted.)
Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.4 million persons marginally attached to the labor force in April had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Full text of Labor Department statement, click here - 05/04/2012

WAGE GROWTH AND REAL VALUE OF WAGES CONTINUES DECLINE

More from the Emeritus Newsroom- A survey released by the National Employment Law Project says workers’ average hourly wages are increasing slowly, however their growth rate is far behind the pace of pre-recession growth. Additionally, the group claims, when adjusted for inflation, the real value of wages has fallen, even over the course of the last year – well into the third year of the official recovery from the Great Recession.

NELP says, these factors amplify diverging income trends, characterized by the accumulation of income gains for top earners and corporations flush with cash, while the overwhelming majority of workers are falling further behind, undermining a sustained robust economic recovery.

Average hourly wages, in nominal terms, have increased incrementally month to month, which generally is good news – an increase in wages means that workers have more money to spend, and when combined with an uptick in hours worked per week, results in more robust weekly wages and indicates that increased hiring may be on its way. However, the rate of nominal hourly wage growth remains weak, and currently lags pre-recession growth. In March 2012, for example, average hourly wages for all private sector workers increased by $0.05 from the prior month, resulting in a 2.1 percent annualized growth rate over the past year. When higher-paid workers (such as managers and supervisors) are removed from the equation, wage growth is even less: average hourly wages for production and nonsupervisory workers rose by $0.03 in March, rounding out the past year with 1.8 percent annualized growth. By comparison, average hourly wages in the year prior to the start of the Great Recession, in December 2007, grew at a rate of 3.3 percent for all private sector workers, and nearly 3.8 percent for production and nonsupervisory workers.

Not only is wage growth slowing, but the real value of hourly wages – once adjusted for inflation – is also declining when compared to the prior year. From March 2011 through March 2012, real average hourly earnings fell 0.6 percent for all private sector workers and declined by even a great degree – 1.0 percent – for nonsupervisory and production workers.3 Changes in the number of hours worked per week by both groups did not make up for the loss in wages: an uptick in the hours worked among all private sector employees left their real total weekly wages (a product of the hourly wage and hours worked per week) unchanged, while an increase in hours for production and nonsupervisory workers still resulted in 0.5 percent decline in real total weekly wages.4 In other words, in real terms workers are earning less now than a year ago.

Full text of NELP report, click here - 05/03/2012

REPORT SHOWS MORE EMPLOYERS PLAN TO HIRE THAN FIRE IN MAY

More from the Emeritus Newsroom - Hiring by U.S. companies is expected to hold steady in May 2012 on an annual basis according to a report from the Society for Human Resource Management (SHRM) that surveyed approximately 500 service-sector companies and 500 manufacturing companies.

The report shows that service-sector hiring will drop by a net of 17.1 points and manufacturing-sector hiring will drop by a net of 3.8 points, when comparing May 2012 to May 2011.The month alone, however, shows a more positive outlook—far more employers plan to hire than lay off workers. 

In the manufacturing sector, 46.6 percent of respondents said their company will hire workers while 6.1 percent will cut jobs, leaving a positive net of 40.5 percent that will offer employment.In the service sector, 35.5 percent of companies represented in the survey will hire while only 5.1 percent will trim payrolls, leaving a net of 30.4 percent expected to add workers. The findings are detailed in the SHRM Leading Indicators of National Employment® (LINE®) Report. LINE features the only national monthly employment indices capturing HR professionals’ month-ahead hiring expectations, and past-month recruiting difficulty. The report also includes a new-hire compensation index and an index of exempt and non-exempt job vacancies.“Year-over-year comparisons show employment expectations trending slightly down for May—especially in the service sector—however, overall hiring expectations continue to be fairly positive,” said Jennifer Schramm, GPHR, and manager of workplace trends and forecasting at SHRM. Where recruiting difficulty is examined, the index for April 2012—LINE’s analysis of past-month data—shows little change on an annual basis.

The number of companies reporting increased new-hire compensation also changed little, on an annual basis, remaining largely flat. The few that did report changes were more likely to increase than decrease new-hire compensation: a net of 9.1 percent in the service sector (9.3 percent increased while 0.2 percent decreased); and a net of 7.7 percent in the manufacturing sector (8.7 percent increased while one percent decreased).

Full text of SHRM report, click here - 05/03/2012

FEDS CHANGE EMPLOYMENT GUIDELINES TO PREVENT DISCRIMINATION AGAINST THOSE WITH ARRESTS AND CONVICTIONS

More from , Staff attorney, National Employment Law Project, click here - 05/01/2012

U-S BUSINESS STARTUPS DECLINING SINCE 1980 / 2010 LOWEST ON RECORD

More from the Emeritus Newsroom - Building on a long-term trend, the nation's business startup rate fell below 8 percent for the first time in 2010, marking the lowest point on record for new firm births. New firms as a percentage of all firms continued a steady downward trend in 2010 – going from a high of 13 percent (as a percentage of all firms) in the 1980s to just under 11 percent in 2006 before making a steep decline to the 8 percent in 2010 – the most current year of data available. 

This and other findings based on newly released data on U.S. firms and establishments with paid employees is included in the Census Bureau's Business Dynamics Statistics (BDS) briefing, released today. Partially funded by the Ewing Marion Kauffman Foundation, the BDS provides annual business data from 1976 to 2010.

BUSINESS STARTUPS REPORT

Reduced numbers of new firms negatively affect the U.S. economy, which relies on startups as critical contributors to job creation. From March 2009 to March 2010, U.S. private-sector firms created a net -1.8 million jobs. The 394,000 companies that began operations in 2010, however, created 2.3 million jobs, in spite of the anemic economy.

"Without the new jobs created by business startups, the Great Recession would have been even deeper, with many more jobs lost," said Robert E. Litan, vice president of Research and Policy at the Kauffman Foundation. "Unfortunately, new firm formation has waned since the 1980s, and the recession accelerated the decline. If we are to achieve and sustain a hearty recovery, policymakers, educators and organizations that help entrepreneurs commercialize their technologies must be willing to address every obstacle that stands in the way of new business formation."

Young firms – those five years old or younger – now comprise fewer than 35 percent of all firms, down from nearly 50 percent in the early 1980s. This decrease is accompanied by a decline in the share of employment accounted for by entrepreneurial firms from 20 percent in the 1980s to 12 percent in 2010. The share of job creation also has fallen, from more than 40 percent in the 1980s to about 30 percent in recent years.

The national decline is seen in all states, although some states have fared better than others. While the report does not analyze causes for individual state activity, it shows that state-level drops ranged from 2 percent to 14 percent when changes from the 1987-1989 and 2004-2006 business cycle peaks were compared. Further, states that experienced the largest declines also were, for the most part, those in which young businesses had the highest initial shares of business activity in the 1980s. These states typically were in the West, Southwest and South – the regions hit hardest by the recession.

In a study released last month that measures annual employer and non-employer business creation in the United States, the Kauffman Index of Entrepreneurial Activity also showed a decline in the number of startups nationally and in all regions except the Northeast. In this study, founders were more likely to be sole proprietors than they were to create jobs.

Full text of study from Kauffman.org , click here - 05/02/2012

CONFERENCE BOARD SAYS MEN CONTINUE TO TAKE BIGGEST HIT IN WAGES

More from the Emeritus Newsroom- A new report released today by the Conference board says overall wage growth between 2008 and 2010 was the weakest since the 1960s. Feeling the Pain: Wage Growth in the United States examines prevailing trends in recent U.S. Bureau of Labor Statistics data, and finds workers and wages still reeling from the downtown, with significant disparities across states and demographic groups in how strongly wage pressures have been felt.

Gad Levanon, Director of Macroeconomic Research at The Conference Board and a co-author of the report says, “While there were signs of modest overall wage improvements in 2011, the severe depression of wage growth during the Great Recession — turning negative in the hardest hit regions — is likely to impact consumer spending, inflation, corporate profits, income inequality, and employee engagement for many years to come. Moreover, the uneven distribution of this pain among different groups may carry deep social and political implications for the future development of the economy.”

Women’s wages are still, on average, close to 20 percent lower than men’s, but male workers have been hit especially hard by stagnating wages in recent years; even in 2011, men’s wage growth had only rebounded to half the average rate of the previous decade, while women’s wage growth was nearly fully recovered. In previous recessions, like that of the early 2000s, no significant such disparities were found. The Great Recession, however, concentrated its direst effects on industries like housing and construction, leading to an unemployment rate that was nearly 2.7 points higher for men than women by October 2009. With this wide a gender gap in unemployment, a corresponding gap in wage growth is expected, as employers in traditionally male industries face a large supply of excess workers.  

Likewise, the report found that the wage-growth gap between less-educated workers and those with bachelor’s degrees or above ballooned from less than half a percentage point before the recession to roughly 1.5 percent in 2008-2010. In 2011, it appeared this gap was once again closing. Similarly, workers in hardest-hit states like Arizona, California, Florida, Michigan, and Nevada — which relied on industries like construction and manufacturing, and experienced the greatest output declines during the recession — also saw wage declines of about 0.1 percent in 2008-2010, compared to very slow, but still positive, wage growth of about 0.8 percent in the rest of the country. (Nationwide, annual wage growth was just under 3 percent in the decade 1998-2008.)

Serious disparities were also found within industries and companies between those who managed to hold on to their jobs through the recession and the more recently hired. In general, the phenomenon of “downward wage rigidity” keeps employers from significantly cutting the wages of existing workers even in severe downturns. For this reason, wage pressure has disproportionately fallen on the previously unemployed or underemployed, who find returning to the workforce means new jobs at lower pay. This effect was found strongest among highly educated workers, where new hires can expect to earn roughly 30% less than existing employees — suggesting that low-skill labor is more easily transferable between positions, and less prone to mismatch than roles filled by the more highly educated. Along these lines, new college graduates have been among the very hardest hit, with a total wage decline of more than 5 percent in 2008-2010, compared to those who graduated before 2008. Young workers in general have faced difficult starts to their careers, with wages for those aged 15–20 declining 0.5 percent over 2008-2010, and for those aged 21-23 declining over 1.5 percent.

New college graduates are particularly apt to settle for lower-paying jobs than they expected, often in areas outside their fields of study or expertise. But all workers, according to Feeling the Pain, are adjusting their expectations as continued high unemployment has allowed employers to hire more educated and experienced employees at wages equal to or lower than they were paying before the recession. Thus far in the recovery, stagnant wages alongside constant or growing revenue has meant a rapid rise in corporate profits, shifting income to the wealthier households that tend to be top stockholders. This effect, combined with the higher wage-growth rates of skilled positions, is likely to extend recent increases in income inequality. At the same time, continued slow wage growth will make hiring U.S. workers relatively less expensive than hiring workers abroad or investing in labor-saving machinery — which may ultimately increase overall employment.

Full text of press release, click here - 04/27/2012

GAO SAYS 40% OF UNPAID INCOME TAXES ARE LINKED TO SELF EMPLOYMENT AND NON CORPORATE BUSINESS EARNINGS

More from the Emeritus Newsroom - The Government Accountability Office issued a report today with estimates of unpaid taxes and what congress can do to fix it. The GAO says that In January 2012, IRS estimated that the gross tax gap—the difference between taxes owed and taxes paid on time—was $450 billion for tax year 2006. IRS estimated that it would collect $65 billion through enforcement actions and late payments, leaving a net tax gap of $385 billion. From 2001 to 2006, IRS estimated that the gross tax gap increased by $105 billion. However, the percentage of taxes owed that were paid on time remained relatively constant at 83.1 percent in 2006, compared to 83.7 percent in 2001.

The agency found that noncompliance does not have a single source but occurs across different types of taxes and taxpayers. For example, individual income tax accounts for the largest portion of the tax gap, but corporate income tax and employment tax are also significant. Further, misreporting by individuals involves business income, non-business income, deductions, and credits. The extent of misreporting depends on the extent to which income tax is withheld or reported to the Internal Revenue Service (IRS) by third parties. For example, nearly 40 percent, or $179 billion, of the 2006 gross tax gap is due to misreporting of non-corporate business income and related self-employment taxes. Much of this misreporting can be attributed to sole proprietors underreporting receipts or over-reporting expenses. Unlike wage and some investment income, sole proprietors’ income is not subject to withholding and only a portion is reported to IRS by third parties.

The GAO proposed solutions, which require action by congress and the IRS.

Enhancing information reporting by third parties to IRS could reduce tax evasion and help taxpayers comply voluntarily. However, identifying additional reporting opportunities can be challenging because third parties may not have accurate information available in a timely manner. Also, adding reporting requirements creates burden for both third parties and IRS.

Ensuring high-quality services to taxpayers, such as by telephone and correspondence or online, can help taxpayers who wish to comply with tax laws but do not understand their obligations. However, tax law changes and funding priorities have recently affected IRS’s ability to provide quality taxpayer services.

Devoting additional resources to enforcement would enable IRS to contact millions of potentially noncompliant taxpayers it identifies but cannot contact. To determine the appropriate level of enforcement resources, policymakers would need to consider how to balance taxpayer service and enforcement activities and how effectively and efficiently IRS currently uses its resources.

Expanding compliance checks before IRS issues refunds would involve matching information returns to tax returns during, rather than after, the tax filing season. This approach would require a major reworking of some fundamental IRS computer systems but could help address identity theft-related fraud and allow IRS to use enforcement resources on other compliance problems.

Leveraging external resources, such as paid tax return preparers and whistleblowers, can help improve tax compliance because paid preparers’ actions have an enormous impact on IRS’s ability to effectively administer tax laws, and whistleblowers provide IRS information on suspected noncompliance.

Modernizing information systems would allow IRS to post more comprehensive tax return information to its computer systems, which could facilitate the examination process and expedite taxpayer contacts for faster resolution.

Simplifying the tax code could help taxpayers understand and voluntarily comply with their tax obligations and limit opportunities for tax evasion.

Full text of GAO report, click here. 04/18/2012

 

AMERICAN INDUSTRIAL PRODUCTION BROADLY UP IN FIRST QUARTER

More from the Emeritus Newsroom - Better news from the U-S Federal Reserve. The Fed claims industrial production was unchanged in March for a second month but rose at an annual rate of 5.4 percent in the first quarter of 2012. Manufacturing output declined 0.2 percent in March but jumped 10.4 percent at an annual rate in the first quarter. The gain in manufacturing output in the first quarter was broadly based: Even excluding motor vehicles and parts, which jumped at an annual rate of nearly 40 percent, manufacturing output moved up at an annual rate of 8.3 percent and output for all but a few major industries increased 5 percent or more. In March, production at mines rose 0.2 percent and the output of utilities gained 1.5 percent. For the quarter, however, the output of utilities dropped at an annual rate of 13.8 percent, largely as a result of unseasonably warm temperatures over the past several months, while the output of mining fell 5.4 percent. At 96.6 percent of its 2007 average, total industrial production for March was 3.8 percent above its year-earlier level. The rate of capacity utilization for total industry edged down to 78.6 percent, a rate 2.1 percentage points above its level from a year earlier but 1.7 percentage points below its long-run (1972--2011) average.

Full text with graphics from Fed statement, click here - 04/17/2012

MARCH JOB CREATION WEAKER THAN EXPECTED / A-D-P SURVEY SAYS PAYROLL GROWTH UP

More from the Emeritus Newsroom- Mixed signals came this morning from different jobs reports for the month of March. First, the Labor Department claims only 120,000 jobs were created during the month. However, payroll firm ADP, which bases its report on payroll numbers, says the number of new jobs during March was 209,000.

The differing reports come a day after the Labor Department reported the lowest weekly toll for new jobless claims in four years, 357,000.

The Labor Department says, nonfarm payroll employment rose by 120,000 in March, and the unemployment
rate was little changed at 8.2 percent. Employment rose in manufacturing, food services and drinking places, and health care, but was down in retail trade.

The ADP report found, private-sector employment increased by 209,000 from February to March on a seasonally adjusted basis, according to the latest ADP National Employment Report® released todayThe ADP National Employment Report, created by Automatic Data Processing, Inc. (ADP®), in partnership with Macroeconomic Advisers, LLC, is derived from actual payroll data and measures the change in total nonfarm private employment each month.  Estimated gains for previous months were revised higher; the gain from December to January was revised up by 9,000 to 182,000, and the gain from January to February was revised up by 14,000 to 230,000.

  • Total employment:   +209,000
     
  • Small businesses:*   +100,000
  • Medium businesses:**   +87,000
  • Large businesses:***     +22,000
     
  • Goods-producing sector:   +45,000
     
  • Service-providing sector:   +164,000
     
Addendum:    
  • Manufacturing industry:       + 23,000

Full text of Labor Department report, click here - Full text of ADP report, click here - 04/06/2012

PRESIDENT OBAMA SIGNS "JOBS ACT" ALLOWING CROWDFUNDING FOR SMALL BUSINESS STARTUPS

More from the Emeritus Newsroom - Called the, Jumpstart Our Business Startups (JOBS) Act, in rare fashion congress has approved and the President today signed it to help small businesses which face tight credit markets.

According to the White House, key provisions of the act include,

• Allowing Small Businesses to Harness “Crowdfunding”:  The Internet already has been a tool for fundraising from many thousands of donors.  Subject to rulemaking by the U.S. Securities and Exchange Commission (SEC), startups and small businesses will be allowed to raise up to $1 million annually from many small-dollar investors through web-based platforms, democratizing access to capital.  Because the Senate acted on a bipartisan amendment, the bill includes key investor protections the President called for, including a requirement that all crowdfunding must occur through platforms that are registered with a self-regulatory organization and regulated by the SEC.  In addition, investors’ annual combined investments in crowdfunded securities will be limited based on an income and net worth test.

• Expanding “Mini Public Offerings”:  Prior to this legislation, the existing “Regulation A” exemption from certain SEC requirements for small businesses seeking to raise less than $5 million in a public offering was seldom used.  The JOBS Act will raise this threshold to $50 million, streamlining the process for smaller innovative companies to raise capital consistent with investor protections.

• Creating an “IPO On-Ramp”:  The JOBS Act makes it easier for young, high-growth firms to go public by providing an incubator period for a new class of “Emerging Growth Companies.” During this period, qualifying companies will have time to reach compliance with certain public company disclosure and auditing requirements after their initial public offering (IPO).  Any firm that goes public already has up to two years after its IPO to comply with certain Sarbanes-Oxley auditing requirements.  The JOBS Act extends that period to a maximum of five years, or less if during the on-ramp period a company achieves $1 billion in gross revenue, $700 million in public float, or issues more than $1 billion in non-convertible debt in the previous three years.

Additionally, the JOBS Act changes some existing limitations on how companies can solicit private investments from “accredited investors,” tasks the SEC with ensuring that companies take reasonable steps to verify that such investors are accredited, and gives companies more flexibility to plan their access to public markets and incentivize employees.

Additional Initiatives Announced Today to Promote Capital Access and Investor Protection

• Monitoring of JOBS Act Implementation:  The President is directing the Treasury Department, Small Business Administration and Department of Justice to closely monitor the implementation of this legislation to ensure that it is achieving its goals of enhancing access capital while maintaining appropriate investor protections. These agencies, consulting closely with the SEC and key non-governmental stakeholders, will report their findings to the President on a biannual basis, and will include recommendations for additional necessary steps to ensure that the legislation achieves its goals.

• Crowdfunding Platforms Commit to Investor Protections:  In a letter to President Obama, a consortium of crowdfunding companies are committing to work with the SEC to develop appropriate regulation of the industry, as required by the JOBS Act.  Members of this leadership group are committing to establish core investor protections, including an enforceable code of conduct for crowdfunding platforms, standardized methods to ensure that investors do not exceed statutory limits, thorough vetting of companies raising funds through crowdfunding, and an industry standard “Investors’ Bill of Rights.” 

Text transcript of signing, click here - Jobs Act fact sheet, click here - YouTube Video of Jobs Act signing, click here - 04/05/2012 

WEEKLY NEW UNEMPLOYMENT CLAIMS CONTINUES STRING OF FOUR YEAR LOWS

More from the Emeritus Newsroom- In the week ending March 31, the advance figure for seasonally adjusted initial claims was 357,000, a decrease of 6,000 from the previous week's revised figure of 363,000. The 4-week moving average was 361,750, a decrease of 4,250 from the previous week's revised average of 366,000.
The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending March 24, unchanged from the prior week's unrevised rate of 2.6 percent. The advance number for seasonally adjusted insured unemployment during the week ending March 24 was 3,338,000, a decrease of 16,000 from the preceding week's revised level of 3,354,000. The 4-week moving average was 3,367,250, a decrease of 24,500 from the preceding week's revised average of 3,391,750.

States reported 2,815,108 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending March 17, an increase of 2,442 from the prior week. There were 3,563,031 claimants in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending March 17 were in Alaska (6.0), Puerto Rico (4.4), Oregon (4.3), Rhode Island (4.2), Pennsylvania (4.1), Wisconsin (4.1), California (4.0), Connecticut (4.0), Montana (4.0), and New Jersey (4.0).

The largest increases in initial claims for the week ending March 24 were in Texas (+4,185), California (+2,199), Kansas (+1,555), Arkansas (+1,141), and Washington (+714), while the largest decreases were in Pennsylvania (-1,956), North Carolina (-1,656), New Jersey (-1,511), Massachusetts (-1,083), and Hawaii (-650).

Full text of Labor Department statement, click here - 04/05/2012

EEOC SUES AT&T FOR FIRING WORKER GRANTED LEAVE FOR HEPATITIS TREATMENT

More from the Emeritus Newsroom - According to investigators for the Equal Employment Opportunity Commission, Lupe Cardona, who worked for  AT&T Corp. as a customer service representative in Indianapolis from 1984, requested a  reasonable accommodation in the form of a finite leave of absence in order to  receive interferon treatment for Hepatitis C.  Without the treatment, her disease could have eventually been fatal. Upon learning of Cardona’s disability and need  for a leave of absence, AT&T granted her leave request. Thus, Cardona was on an approved, paid  medical leave of absence from June 24 to Oct. 24, 2010, when her physician  determined the treatment was successful and released her to return to work  without restriction. Two days later, AT&T  fired her, claiming her use of approved leave to receive life-saving treatment violated  its attendance policy. AT&T refused  to provide Cardona a reasonable accommodation by exempting her leave of absence  from its no-fault attendance policy.

The EEOC says such alleged conduct violates the Americans With Disabilities  Act (ADA). The EEOC filed suit after  first attempting to reach a pre-litigation settlement through its conciliation  process. The EEOC filed its lawsuit in  U.S. District Court for the Southern District of Indiana (EEOC v. AT&T Corp., Civil Case No.: 1:12-cv-0402-TWP-DKL) after  first attempting to reach a pre-litigation settlement through its conciliation  process. The EEOC’s lawsuit seeksback pay, compensatory and punitive  damages and reinstatement or front pay for Cardona as well as injunctive relief,  including a court order prohibiting AT&T from failing to provide reasonable  accommodation to disabled employees by counting absences caused by their  disability as “chargeable,” or unprotected, absences under its attendance  policy.

“The refusal of AT&T to make a perfectly reasonable  exception to its draconian attendance policy to accommodate the known  disability of an employee violated federal law as well as common sense and  common decency,” said EEOC trial attorney Patrick Holman.

Barbara A. Seely, regional attorney of the EEOC’s St.  Louis District Office, added, “This employer’s conduct is precisely what  Congress had in mind when enacting the ADA. The very essence of reasonable accommodation  is making exceptions to hard-and-fast rules in circumstances like this when to  do so causes no undue hardship to the employer – and failing to do so might  cause grave harm. AT&T’s actions here  were not only baffling, but downright cruel.”

Full text of EEOC press release, click here - 04/02/2012

 

SUPERVISOR AT DEADLY WEST VIRGINIA MINE PLEADS GUILTY TO HIDING SAFETY VIOLATIONS

More from the LA Times, click here - 03/30/2012

H-I-V POSITIVE MAN LOSES JOB TERMINATION CASE IN SUPREME COURT / FEDS SHARED CONFIDENTIAL INFORMATION ABOUT HIS CONDITION

More from the Emeritus Newsroom - Stanmore Cawthon Cooper, a licensed pilot who had kept his H-I-V positive status confidential while applying for re certifications to perform his duties, lost a 5-3 decision before the Supreme Court, which claimed he was not entitled to damages because the Social Security Administration wrongfully leaked his status to the FAA.

According to the court, Cooper failed to disclose his human immunodeficiency virus (HIV) diagnosis to the Federal Aviation Administration (FAA) at a time when the agency did not issue medical certificates, which are required to operate an aircraft, to persons with HIV. Subsequently, respondent applied to the Social Security Administration (SSA) and received long-term disability benefits on the basis of his HIV status. Thereafter, he renewed his certificate with the FAA on several occasions, each time intentionally withholding information about his condition. The Department of Transportation(DOT), the FAA’s parent agency, launched a joint criminal investigation with the SSA to identify medically unfit individuals who had obtained FAA certifications. The DOT provided the SSA with the names of licensed pilots, and the SSA, in turn, provided the DOT with a spreadsheet containing information on those pilots who had also received disability benefits. Respondent’s name appeared on the spreadsheet, and an investigation led to his admission that he had intentionally withheld information about his HIV status from the FAA. His pilot certificate was revoked, and he was indicted for making false statements to a Government agency. He pleaded guilty and was fined and sentenced to probation. He then filed suit, alleging that the FAA, DOT, and SSA violated the Privacy Act of 1974, which contains a detailed set of requirements for the management of records held by Executive Branch agencies. The Act allows an aggrieved individual to sue for “actual damages,” 5 U. S. C. §552a(g)(4)(A), if the Government intentionally or willfully violates the Act’s requirements in such a way as to adversely affect the individual. Specifically, respondent claimed that the unlawful disclosure to the DOT of histional distress. The District Court concluded that the Government had violated the Act. But, finding the term “actual damages” ambiguous, the court relied on the sovereign immunity canon, which provides that sovereign immunity waivers must be strictly construed in the Government’s favor, to hold that the Act does not authorize the recovery of non pecuniary damages. Reversing the District Court, the Ninth Circuit concluded that “actual damages” in the Act is not ambiguous and includes damages for mental and emotional distress.
The Supreme Court, in its decision written by Justice Alito, found that The Privacy Act does not unequivocally authorize damages for mental or emotional distress and therefore does not waive the Government’s sovereign immunity from liability for such harms. the court ruling stated that Congress intended the term “actual damages” to mean “special damages,” thus barring Privacy Act victims from any recovery unless they can first show some actual pecuniary harm. That Congress would choose “actual damages” instead of “special damages” is not without precedent, as the terms have occasionally been used interchangeably. Furthermore, any doubt about the plausibility of construing “actual damages” as special damages in the Privacy Act is put to rest by Congress’ deliberate refusal to allow recovery for “general damages.” In common-law defamation and privacy cases, special damages is the only category of compensatory damages other than general damages. Because Congress declined to authorize general damages, it is reasonable to infer that Congress intended the term “actual damages” in the Act to mean special damages for proven pecuniary loss. Because Congress did not speak unequivocally, the Court adopts an interpretation of “actual damages” limited to proven pecuniary harm. To do otherwise would expand the scope of Congress’ sovereign immunity waiver beyond what the statutory text clearly requires.

Full text of actual Supreme Court decision, click here - 03/29/2012

FEDERAL COURT BLASTS PAYDAY LENDER FOR FIRING EMPLOYEE WITH BIPOLAR DISORDER

More from the Emeritus Newsroom- The U.S. Equal Employment  Opportunity Commission (EEOC) has announced a victory in one of its first  disability discrimination lawsuits taken to trial concerning bipolar disorder. Following a four-day bench trial, a federal  district court entered judgment for $56,500 against Irving, Tex.-based Cottonwood  Financial. The court found that the company  violated the Americans with Disabilities Act (ADA) and the Washington Law Against  Discrimination (WLAD) when it fired an employee from its Walla Walla, Wash.,  store.

After hearing the evidence  presented at trial in EEOC v. Cottonwood  Financial, Ltd. (No. CV-09-5073-EFS, E. D. Wash.), U.S. District Judge  Edward F. Shea noted “Cottonwood’s deficient ADA policies and practices” and found  that the company’s half-dozen different rationales for terminating store manager  Sean Reilly were a pretext for discrimination and that the company had in fact  fired Reilly because it regarded him as too disabled to work due to his bipolar  disorder.

The court also commended Reilly’s  efforts to cope with his disability, achieve academic success and get a job. Reilly was an honor student in high school  who attended college in Portland,  Ore. on an academic  scholarship. While in college, he was  diagnosed with bipolar disorder. When his  symptoms forced him to leave school, he returned home to Walla  Walla and found employment at Cottonwood,  which does business as The Cash Store.

Hired as an  assistant manager in June 2006, Reilly was swiftly promoted to store manager in  October and received an award for the success of his store in November  2006. However, in late January 2007, Reilly,  through a health care representative, requested a short leave to adjust to new  medication prescribed by his doctor to treat his condition. Reilly alleged that the company denied this  request, forcing him to return to work too soon. The Cash Store fired Reilly in February 2007 –  just days after his need for sick leave first arose.

The ADA and WLAD outlaw firing an employee due to  disability and prohibit adverse employment decisions motivated, even in part,  by ill will toward an employee’s real or perceived disability or request for an  accommodation. After first trying to  reach a voluntary settlement with Cottonwood through the EEOC’s conciliation  process, the agency filed suit and was joined by Reilly, through his private  counsel, Keller W. Allen of Spokane.

Judge Shea found that The Cash Store broke the  law by firing Reilly and awarded him $6,500 in back wages and $50,000 for  emotional pain and suffering. The court  also issued a three-year injunction, requiring The Cash Store to train its  managers and human resources personnel on anti-discrimination and  anti-retaliation laws.

After the final order was announced,  Reilly said, “It felt as if several years of emotional damage had suddenly been  healed. After my diagnosis, I really  challenged myself to beat the odds and do well at work. To have my disability outweigh my performance  in my employer’s eyes was crushing.”

Reilly continued, “This case was  never about money or any sort of payback -- it was always about doing the right  thing to help protect the rights of people with disabilities. I hope this verdict enables other people with  bipolar disorder to have an equal chance at obtaining and maintaining  successful and fulfilling careers and to prevent future discrimination. It makes me very happy and proud to know that  justice prevailed in this case.”

William Tamayo, the EEOC’s regional  attorney in San Francisco,  said, “The court sent an important message today that employers can’t  substitute fiction for facts when making employment decisions about disabled  workers. Employers acting on outdated  myths and fears about disabilities need to know that the EEOC will not shy away  from taking ADA  cases to trial to bring them into the 21st century.”

Tamayo  recognized EEOC Supervisory Trial Attorney John Stanley for overseeing the  litigation, Senior Trial Attorneys Damien Lee and Jamal Whitehead for  representing the EEOC at trial, and Investigator Annalie Greer for investigating  the case allegations.

Reilly’s private counsel Keller  Allen added, "The court saw through the multiple and changing excuses  offered by Cottonwood for firing Sean Reilly. This is a well-deserved victory for a  hard-working individual who refused to allow his disability to be used to set a  limit on his achievements.”

According to its website, www.cashstore.com, Cottonwood Financial  owns and operates payday lending stores in over a half-dozen states and  maintains over 500 employees.

Full text of EEOC announcement, click here - 03/29/2012

SUPREME COURT SAYS STATES ARE IMMUNE TO SOME LAWSUITS OVER MEDICAL LEAVE

More from the Emeritus Newsroom- In another of the string of 5-4 decisions, the U-S Supreme Court has decided states are immune from lawsuits involving some sections of the Family and Medical Leave Act.

The ruling, issued Tuesday, effectively casts a cloud over the rights of men, and potentially women, working for state and local governments, to be granted full protection of the federal Family and Medical Leave Act.

The case before the court, involved Daniel Coleman, an employee of the Maryland Court of Appeals, who had applied for a ten day medical leave for issues related to his condition of hypertension and diabetes. His employer refused and fired Coleman. Coleman claimed he was entitled to protection under the FMLA. The conservative court majority prevailed saying the act was never intended to protect males in Coleman's circumstances. However, dissenting justices raised concerns that the majority opinion weakens protection for pregnant women as well.

The court found that The Family and Medical Leave Act of 1993 (FMLA) entitles an employee to take up to 12 work weeks of unpaid leave per year for (A) the care of a newborn son or daughter; (B) the adoption or foster-care
placement of a child; (C) the care of a spouse, son, daughter, or parent with a serious medical condition; and (D) the employee’s own serious health condition when the condition interferes with the employee’s ability to perform at work.

The court also found that," As a consequence of our constitutional design, money damages are the exception when sovereigns (states) are defendants. Subjecting States to suits for damages requires more than a theory for why abrogating the States’ immunity aids in, or advances, a stated congressional purpose. To abrogate the States’ immunity from suits for damages, Congress must identify a pattern of constitutional violations and tailor a remedy congruent and proportional to the documented violations. It failed to do so when it allowed employees to sue States for violations of the FMLA’s self care provision. The judgment of the Court of Appeals is affirmed".

In her dissent with the majority Opinion, written by Justice Kennedy, Justice Ruth Bader Ginsberg stated, "Congress made plain its rationale for the prescription’s broader compass: Congress sought to ward off the unconstitutional discrimination it believed would attend a pregnancy-onlyleave requirement. Under the caption “Equal protection and non-discrimination,” Congress explained: “The FMLA addresses the basic leave needs of all employees. . . . This is an important principle reflected in the bill. “A law providing special protection to women . . . , in addition to being inequitable, runs the risk of causing discriminatory treatment. Employers might be less inclined to hire women . . . . For example, legislation addressing the needs of pregnant women only might encourage discriminatory hiring practices against women of child bearing age. Legislation addressing the needs of all workers equally does not have this effect. By addressing the serious leave needs of all employees, the FMLA avoids providing employers the temptation to discriminate [against women]. . . . . . “The legislation is [thus] based not only on the Commerce Clause, but also on the guarantees of equal protection . . . embodied in the Fourteenth Amendment.”
H. R. Rep. No. 102–135, pt. 1, pp. 27–28 (1991) (hereinafter 1991 House Report). Congress’ concern was solidly grounded in workplace realities. After this Court upheld California’s pregnancy only leave policy in California Fed., Don Butler, President of the Merchants and Manufacturers Association, one of the plaintiffs in that case, told National Public Radio reporter Nina Totenberg that, as a result of the decision,“many employers will be prone to discriminate against women in hiring and hire males instead.” 1987 House Hearing 36. Totenberg replied, “But that is illegal, too”—to which Butler responded, “Well, that is illegal, but try to prove it.”

Full text of actual U-S Supreme Court decision (Coleman v. Maryland Court of Appeals) , click here. 03/21/2012

IOWA FIRM NAILED BY LABOR DEPARTMENT FOR DISCRIMINATION AGAINST ASIAN JOB APPLICANTS

More from the Emeritus Newsroom- The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that federal government contractor NCS Pearson Inc. has agreed to settle allegations of hiring discrimination on the basis of race involving 67 Asian job applicants who were rejected for associate software developer positions at the company's Iowa City, Iowa, facility.

"All workers deserve a fair shot to compete for and secure good jobs, and it is incumbent upon companies that do business with taxpayer dollars to make sure that the doors of opportunity are truly open to everyone," said OFCCP Director Patricia A. Shiu, a member of the federal Interagency Working Group on Asian Americans and Pacific Islanders. "President Obama has articulated his commitment to protecting the civil rights of our nation's rapidly growing Asian American communities, and I'm pleased that we were able to work out a settlement which will provide financial relief and jobs for workers who were denied their fair shot."

During a scheduled compliance review, OFCCP determined that NCS Pearson violated Executive Order 11246 in 2009 by using a hiring process that resulted in systemic discrimination against Asian job applicants at its Iowa City facility. Under the terms of a conciliation agreement signed by NCS Pearson and OFCCP, the contractor will pay $100,000 in back wages and interest to the 67 affected job seekers, and will offer associate software developer positions and retroactive seniority to at least four class members as positions become available. Additionally, the company will revise its selection policies and procedures to ensure equal employment opportunities for future applicants.

Full text of Labor Department press release, click here - 03/16/2012

NEW YORK CITY FIRE DEPARTMENT MUST PAY $128 MILLION IN HIRING DISCRIMINATION CASE

More from the Emeritus Newsroom- The U.S. District Court for the Eastern District of New York has odered the New York City Fire Department to pay $128,696,803. The damages amount to what the court calculated as back pay owed to African-American and Hispanic applicants who were discriminated against in the hiring of entry-level firefighters for the Fire Department of New York (FDNY).  The city’s actions were found by the court to be a violation of Title VII of the Civil Rights Act of 1964.

“FDNY’s hiring practices have deprived many qualified African-Americans and Hispanics of the opportunity to serve the people of New York City as firefighters,” said Loretta E. Lynch,  U.S. Attorney for the Eastern District of New York.  “The court’s order sends a strong message to FDNY and to all other employers, public and private, that they must comply with the requirements of Title VII.”

According to the court’s order, a process for distributing monetary damages to individuals harmed by the city’s discriminatory practices will be established in a future order.  The Department of Justice has established a website with information about the lawsuit for individuals who believe that they may have been victims of the city’s discriminatory practices, which is available at www.usdoj.gov/fdnycase.

Full text of statement from US Attorney's Office, click here. 03/13/2012

OBAMA ANNOUNCES U-S TRADE CASE FILED AGAINST CHINA - INVOLVES RARE EARTH MATERIALS (6 Minutes)

Click here for YouTube playback of Obama speech - More in this story from the LA Times, click here - 03/13/2012

U-S ECONOMY ADDS 226,000 JOBS IN FEBRUARY

More from the Emeritus Newsroom- Nonfarm payroll employment rose by 227,000 in February, and the unemployment rate was unchanged at 8.3 percent, the U.S. Bureau of Labor Statistics reported today.
Employment rose in professional and businesses services, health care and social assistance, leisure and hospitality, manufacturing, and mining.

The number of unemployed persons, at 12.8 million, was essentially unchanged in February. The unemployment rate held at 8.3 percent, 0.8 percentage point below the August 2011 rate. Among the major worker groups, the unemployment rates for adult men (7.7 percent), adult women (7.7 percent), teenagers (23.8 percent), whites (7.3 percent), blacks (14.1 percent), and Hispanics (10.7 percent) showed little or no change in February. The jobless rate for Asians was 6.3 percent, not seasonally adjusted. The number of long-term unemployed (those jobless for 27 weeks and over) was little changed at 5.4 million in February. These individuals accounted for 42.6 percent of
the unemployed. Both the labor force and employment rose in February. The civilian labor force
participation rate, at 63.9 percent, and the employment-population ratio, at 58.6
percent, edged up over the month.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) was essentially unchanged at 8.1 million in February. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.In February, 2.6 million persons were marginally attached to the labor force, essentially unchanged from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 1.0 million discouraged workers in
February, about the same as a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.6 million persons marginally attached to the labor force in February had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Professional and business services added 82,000 jobs in February. Just over half of the increase occurred in temporary help services (+45,000). Job gains also occurred in computer systems design (+10,000) and in management and technical consulting services(+7,000). Employment in professional and business services has grown by 1.4 million since a recent low point in September 2009. Health care and social assistance employment rose by 61,000 over the month. Within health care, ambulatory care services added 28,000 jobs, and hospital employment increased by 15,000. Over the past 12 months, health care employment has risen by360,000. In February, social assistance employment edged up (+12,000).In February, employment in leisure and hospitality increased by 44,000, with nearly aloof the increase in food services and drinking places (+41,000). Since a recent low in February 2010, food services has added 531,000 jobs .Manufacturing employment rose by 31,000 in February. All of the increase occurred in durable goods manufacturing, with job gains in fabricated metal products (+11,000),transportation equipment (+8,000), machinery (+5,000), and furniture and related products (+3,000). Durable goods manufacturing has added 444,000 jobs since a recent trough in January 2010.

Full text of Bureau of Labor Statistics report, click here. 03/09/2012

FRAUDLENT PROGRAM PROMISING FEDERAL JOBS HALTED BY FEDS AND ARIZONA

More from the Emeritus Newsroom- The Federal Trade Commission and the State of Arizona have announced they halted an operation that took consumers' money, by allegedly holding out false claims that it could help them get a job with the federal government. A settlement, reached as part of the FTC's ongoing efforts to protect consumers in financial distress, permanently bans the defendants from selling employment-related products or services.

According to the complaint against Government Careers Inc., Richard Friedberg, and Rimona Friedberg, the defendants falsely told people they could get federal jobs if they paid $119 for study materials that would help them pass an exam, even though in many cases there were no exams for the jobs or there were no jobs. The defendants also charged consumers $965 for career counseling services, such as resume editing and employment exam preparation, and demanded advance payment, even after stating that consumers would not have to pay the fee until they got a government job.

The complaint further alleged that Government Careers marketed its services by advertising on job search websites such as Careerbuilder.com or Yahoo! Hot Jobs and in local newspapers. Its ads looked like postings for "Postal Jobs," "Wildlife Jobs," "Border Patrol [agents]," or "Administrative Support and Clerical" jobs. The court temporarily halted the operation, pending resolution of the case.

The settlement order's ban on selling employment-related services will take effect six months after all parties have signed it, allowing time for a possible sale of a separate business owned by Richard Friedberg and Rimona Friedberg, Career Systems LLC, also known as Job Search Network LLC. In addition to banning the defendants from marketing employment products or services, the order permanently prohibits them from misrepresenting any goods or services, failing to disclose material facts about any goods or services, and violating the Arizona Consumer Fraud Act. It also bars them from selling or otherwise benefitting from customers' personal information, and from failing to properly dispose of such information as provided in the order. The order imposes a $363,761 judgment that will be suspended. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.

The Commission vote approving the proposed settlement order was 4-0. It is subject to court approval. The FTC filed the proposed order in the U.S. District Court for the District of Arizona.

Full text of Press release from the Federal Trade Commission, click here. 03/08/2012

PAYROLL GIANT A-D-P SAYS ECONOMY ADDED 216,000 JOBS IN FEBRUARY

More from the Emeritus Newsroom- According to A-D-P, employment in the U.S. nonfarm private business sector increased by 216,000 from January to February on a seasonally adjusted basis. The estimated advance in employment from December to January was revised slightly upwards to 173,000 from the initially reported 170,000.
Employment in the private, service-providing sector rose 170,000 in February, and employment
in the private, goods-producing sector increased 46,000 in February. Manufacturing
employment increased 21,000.
Employment on large payrolls—those with 500 or more workers—increased 20,000, and
employment on medium payrolls—those with 50 to 499 workers—rose 88,000 in February.
Employment on small payrolls—those with up to 49 workers—rose 108,000 that same period.
Of the 108,000 jobs created by small businesses, 18,000 jobs were created by the goodsproducing
sector and 90,000 jobs were created by the service-producing sector.
Employment in the construction industry grew by 16,000 in February, marking the fifth
consecutive monthly gain in this sector. Employment in the financial services sector increased
14,000 in February, marking the seventh consecutive and largest monthly gain over the last two
years.

Full text of ADP statement, click here. 03/07/2012

FIRST TIME JOBLESS CLAIMS CONTINUE DOWNWARD TREND

More from the Emeritus Newsroom- The Bureau of Labor Statistics reports, in the week ending February 25, the advance figure for seasonally adjusted initial claims was 351,000, a decrease of 2,000 from the previous week's revised figure of 353,000. The 4-week moving average was 354,000, a decrease of 5,500 from the previous week's revised average of 359,500.
The advance seasonally adjusted insured unemployment rate was 2.7 percent for the week ending February 18, unchanged from the prior week's unrevised rate.
The advance number for seasonally adjusted insured unemployment during the week ending February 18, was 3,402,000, a decrease of 2,000 from the preceding week's revised level of 3,404,000. The 4-week moving average was 3,444,000, a decrease of 12,250 from the preceding week's revised average of 3,456,250.
The advance number of actual initial claims under state programs, unadjusted, totaled 331,906 in the week ending February 25, a decrease of 14,717 from the previous week. There were 353,797 initial claims in the comparable week in 2011.
The advance unadjusted insured unemployment rate was 3.1 percent during the week ending February 18, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,878,695, a decrease of 131,789 from the preceding week. A year earlier, the rate was 3.5 percent and the volume was 4,344,862.

The U-S Department of Labor stats for February are due Friday morning.

Full text of BLS statement, click here. 03/01/2012

PRESIDENT OBAMA SPEAKS ON THE RESURGENCE OF THE AMERICAN AUTO INDUSTRY - CHIDES THOSE WHO OPPOSED AUTO BAILOUT

Click here for YouTube playback of Obama speech (25 Minutes) - 02/29/2012

VIDEO: PLAY WRITER LAMPOONS CHINESE ABUSE OF LABOR LAWS WHILE PRODUCING APPLE PRODUCTS

More in this YouTube video from Voice of America, click here (3 Minutes) - 02/29/2012

POSTAL SERVICE TO CLOSE 223 MAIL SORTING FACILITIES

More from the Emeritus Newsroom - With the Postal Service losing $3.3 billion in the last quarter, it hopes to save at least $2.1 billion annually by cutting 223 mail sorting facilities throughout the U-S.

Because the postal service projects it will handle about half as many pieces of mail by 2015, than it did in 2010, the closing mail sorting facilities will be consolidated with other sorting facilities.

A total of 264 facilities were studied for possible closure. Thirty-five of them will remain open. Decisions on six are still pending.

Click here for location list of facilities to close. Fact sheet and other information on closures, click here. 02/24/2012

SUPERVISOR IN DEADLY WEST VIRGINIA MINE DISASTER INDICTED IN FEDERAL COURT

More from the Emeritus Newsroom -The U-S District Attorney for the Southern District of West Virginia has filed an indictment against a supervisor accused of misleading federal inspectors, leading up to the April 2010 disaster at the Upper Big Branch Mine that claimed 20 miners. The indictment claims that beginning no later than February, 2008 and continuing through and including April 5, 2010, supervisor Gary May, together with others known and unknown, unlawfully, willfully, and knowingly combined, conspired, confederated, and agreed together with each other to defraud the United States and an agency thereof, to wit, to hamper, hinder, impede, and obstruct by trickery, deceit, and dishonest means, the lawful and legitimate functions of the Department of Labor and its agency, the Mine Safety and Health Administration, in the administration and enforcement of mine health and safety laws at the Upper Big Branch Mine. The investigation following the disaster found, among other things, that the explosion at the mine was caused by a gas buildup, which May and other in the company knew about, but did not take the required action.

May, 43, of Bloomingrose, West Virginia, is accused of conspiring to defraud the United States by impeding MSHA in carrying out its lawful functions, a felony violation of 18 U.S.C. § 371. The offense carries a potential penalty of up to five years' imprisonment.

"Today's charge is a significant step in the investigation of events at the Upper Big Branch mine," said District Attorney R. Booth Goodwin II."Our investigation of those events remains ongoing."

The Federal Bureau of Investigation and the United States Department of Labor's Office of Inspector General are handling the investigation.

Full text of District Attorney filing, click here. District Attorney press release and audio of statement, click here. 02/22/2012

CONGRESS PASSES EXTENDED UNEMPLOYMENT BENEFITS AND PAYROLL TAX CUT / MEASURE ALSO PREVENTS CUTS IN MEDICARE PAY TO DOCTORS / PRESIDENT WILL SIGN ASAP

More from the Emeritus Newsroom- The U-S House and Senate today passed the extension of jobless benefits and payroll tax cuts. It was sent to President Obama for his signature. Called, "Middle Class Tax Relief and Job Creation Act of 2012", the bill passed the Senate 60-36 and the House 293-132 .

It extends emergency unemployment compensation up to 99 weeks until August 15, 2012 and continues the Social Security Payroll Tax deduction rate at 4.2%. Stops the reduction in Medicare, Medicaid and SCHIP reimbursement fees to doctors. Grants a permit to build the controversial Keystone XL pipeline.

Thomas summary of "Middle Class Tax Relief and Job Creation Act of 2012", click here - 02/17/2012

WEEKLY JOBLESS CLAIMS LOWEST IN THREE YEARS

More from the Emeritus Newsroom- In the week ending February 11, the advance figure for seasonally adjusted initial claims was 348,000, a decrease of 13,000 from the previous week's revised figure of 361,000. The 4-week moving average was 365,250, a decrease of 1,750 from the previous week's revised average of 367,000.
The advance seasonally adjusted insured unemployment rate was 2.7 percent for the week ending February 4, a decrease of 0.1 percentage point from the prior week's unrevised rate.
The advance number for seasonally adjusted insured unemployment during the week ending February 4, was 3,426,000, a decrease of 100,000 from the preceding week's revised level of 3,526,000. The 4-week moving average was 3,492,500, a decrease of 8,250 from the preceding week's revised average of 3,500,750.

Full text of Bureau of Labor Statistics press release, click here. 02/16/2012

NEW RULES TO PROTECT AMERICAN WORKERS FROM ABUSE OF FOREIGN WORKER VISAS

More from the Emeritus Newsroom- New rules announced by the U-S Department of Labor on Friday , which will take effect within the next 60 days, require employers to prove they can't find an American worker with the skills for a job before they can get a work visas for a worker form overseas.

The rules state, "The regulations of the U.S. Citizenship and Immigration Services (USCIS), the agency within DHS (Department of Homeland Security), which adjudicates requests for H-2B status, require that an intending employer first apply for a temporary labor certification from the Secretary of Labor (the Secretary). That certification informs USCIS that U.S. workers capable of performing the services or
labor are not available, and that the employment of the foreign worker(s) will not adversely affect the wages and working conditions of similarly employed U.S. workers.

Visa enforcement loopholes were created due to a court ruling that invalidated much of a similar 2008 work visa rulemaking. According to the Labor Department, on August 30, 2010, the U.S. District Court for the Eastern District of Pennsylvania in, Comité de Apoyo a los Trabajadores Agricolas (CATA) v. Solis, invalidated various provisions of the 2008 Final Rule and remanded the rule to the Department to correct its errors. In the Notice of Proposed Rulemaking (NPRM) published March 18, 2011 (76 FR 15130), the Labor Department proposed to amend the particular provisions that were invalidated by the Court, including specifying when H-2B employers must contact unions as a potential source of labor and providing a new definition of full-time and a slightly modified definition of job contractor.

Under the new rules, an employer employing H-2B workers and/or workers in corresponding employment under an Application for Temporary Employment Certification has agreed as part of the Application for Temporary Employment Certification that it will abide by the following conditions with respect to its H-2B workers and any workers in corresponding employment:
(a) Rate of pay. (1) The offered wage in the job order equals or exceeds the highest
of the prevailing wage or Federal minimum wage, State minimum wage, or local
minimum wage. The employer must pay at least the offered wage, free and clear, during
the entire period of the Application for Temporary Employment Certification granted by
OFLC.
(2) The offered wage is not based on commissions, bonuses, or other incentives,
including paying on a piece-rate basis, unless the employer guarantees a wage earned
every workweek that equals or exceeds the offered wage.
(3) If the employer requires one or more minimum productivity standards of workers
as a condition of job retention, the standards must be specified in the job order and the
employer must demonstrate that they are normal and usual for non-H-2B employers for
the same occupation in the area of intended employment.
(4) An employer that pays on a piece-rate basis must demonstrate that the piece rate is
no less than the normal rate paid by non-H-2B employers to workers performing the same occupation
and area of intended employment. there are additional rules governing how these jobs can be advertised by the employer. Full text of Department of Labor Rulemaking, click here. 02/13/2012

4TH QUARTER 2011 PRIVATE SECTOR LAYOFFS DOWN

More from the Emeritus Newsroom- Employers in the private nonfarm sector initiated 1,638 mass layoff
events in the fourth quarter of 2011 that resulted in the separation of 266,971 workers from their jobs for at least 31 days, the U.S. Bureau of Labor Statistics reported today. Over the year, total extended mass layoff events and associated worker separations were down from 1,999 and 338,643, respectively. Total events and separations reached their lowest fourth quarter levels since 2005, while manufacturing sector events and separations declined to their lowest fourth quarter levels in program history.

Permanent work site closures accounted for only 5 percent of extended mass layoff events in the fourth quarter of 2011, the lowest proportion of events due to closure for any quarter in program history (with data available back to 1995). Sixty-four percent of private nonfarm employers indicated they anticipated some type of worker recall--the highest percentage in six years.

Full text of Department of Labor press release, click here. 02/10/2012

JOB OPENINGS AND TURNOVER UP / MORE HOPE FOR UNEMPLOYED AND UNDEREMPLOYED

More from the Emeritus Newsroom- There were 3.4 million job openings on the last business day of
December, up from 3.1 million in November, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.1 percent) and separations rate (3.0 percent) were unchanged over the month. The job
openings rate has trended upward since the end of the recession in June 2009. (Recession dates are determined by the National Bureau of Economic Research.) This release includes estimates of the number and rate of job openings, hires, and separations for the nonfarm sector by industry and by geographic region.

The number of job openings in December was 3.4 million, up from 3.1 million in November. (See table 1.) Although the number of job openings remained below the 4.4 million openings when the recession began in December 2007, the number of job openings has increased 39 percent since the end of the recession in June 2009.

The number of job openings in December (not seasonally adjusted) increased over the year for total nonfarm and total private; the level was little changed for government. Several industries saw increases in the number of job openings over the year, while the number of job openings decreased for federal government. The South region experienced an increase in the number of job openings over the year.

The survey may prove relief for an increasing number of American and Canadian workers who want to move on. According to ManPower subsidiary, Right Management, four out of five workers say their current job unrewarding and not satisfying. The conclusion of the survey stated, “Employees are clearly in a grumpy mood, a trend we’ve tracked for more than a year. In better times we probably would have found just a minority complain that their energy is being sapped and so forth, but now it is almost a majority of employed North Americans who seem to be unhappy”.

Another survey by Right Management, released today, found, an increasing number of employers saying they are having a hard time finding qualified employees.

Full text of Job Turnover report from the Labor Department, click here. Right Management Survey on job satisfaction, click here. Right Management survey of Employers, click here. 02/07/2012

FAA GETS GPS NAVIGATION UPGRADE WITH BITTER PILL RESTRICTING UNION ORGANIZING OF MERGED AIRLINES

More from the Emeritus Newsroom- Congress has passed a permanent, $63.4 billion funding bill, H.R. 658, to find the Federal Aviation Administration through 2015. It includes $11 billion for a conversion of the nation's navigation control system to satellite GPS technology. The system currently functions on radar, which is 6 to 12 seconds behind the almost real time advantages with GPS. President Obama is expected to sign the bill.

It had been held up by House Republicans who demanded tougher restrictions on union organizing at merged airlines. Because of this, unions had opposed the final language of the bill. Unions were also concerned about in impact that the GPS system would have on union air controllers, which remains unclear.

Democrats who approved of the compromise say they will be keeping watch on the effect it may have when employees are voting on union representation. Under the new rules of H.R. 658, 50 percent of airline workers must favor a vote on unionization before that vote can take place, up from 35 percent.The FAA had been hindered by eight years of short term funding due to backroom battles over unions and funding cuts.

Consumer protections and consumer complaint investigations will also be expanded under the new funding bill. It also provides more money for passenger air service in smaller cities which don't qualify for current subsidy programs.

Full text of H.R. 658 Summary, click here. 02/07/2012

OBAMA ANNOUNCES VETERANS JOB CORP TO HIRE 20,000 VETERANS OVER THE NEXT 5 YEARS / ALSO PROPOSES MONEY FOR ADDITIONAL POLICE AND FIRE HIRING THIS YEAR

More from the Emeritus Newsroom- President Obama wants a Veterans Job Corp initiative to find jobs for thousands of veterans over the next five years. Obama proposes:

• New incentives to hire veterans as first responders: The President will announce $166 million in 2012 Community Oriented Policing Services (COPS) Hiring Grant funding and $320 million in 2012 Staffing for Adequate Fire and Emergency Response (SAFER) grants. The President will also announce that preference for these grants will now be given to communities that recruit and hire post-9/11 veterans to serve as police officers and firefighters. The COPS funding preserves law enforcement jobs and spurs new ones by making grant awards to communities across the country.  SAFER grants provide funding directly to fire departments and volunteer firefighter interest organizations in order to help them increase and retain the number of trained firefighters available in their communities, enhancing the local fire departments' abilities to comply with staffing, response, and operational standards.

• Hiring veterans to protect Americans as first responders and law enforcement officers:  Today, the President announced he will include in his FY13 Budget the $4 billion in COPS funding first proposed in the American Jobs Act to spur police officer hiring in 2012. The Budget will also include $1 billion for SAFER grants, as proposed in the American Jobs Act, to encourage firefighter hiring.  Preference for these grants will also be given to communities that hire post-9/11 veterans.

• Putting veterans to work preserving and restoring America’s land and resources: The President will propose $1 billion to develop a Veterans Job Corps conservation program that will put up to 20,000 veterans back to work over the next five years protecting and rebuilding America. Veterans will restore our great outdoors by providing visitor programs, restoring habitat, protecting cultural resources, eradicating invasive species, and operating facilities. Additionally, our veterans will help make a significant dent in the deferred maintenance of our Federal, State, local, and tribal lands including jobs that will repair and rehabilitate trails, roads, levees, recreation facilities and other assets.  The program will serve all veterans, but will have a particular focus on post-9/11 veterans.

• Supporting veteran entrepreneurship by building our next generation of small business leaders:  The President will propose an expansion of entrepreneurship training opportunities for separating service members and veterans. As part of the VA-DOD Task Force for a Career Ready Military that the President established in August of last year, the Departments of Defense and Veteran Affairs, working with the Small Business Administration, are developing a two-day entrepreneurship program as part of the Transition Assistance Program that will be available to all service members.  In addition, once service members separate, SBA will offer veterans more in-depth entrepreneurial training through an 8-week online training program that will teach the fundamentals of small business ownership to over 10,000 veterans annually, as well as an expansion of the existing suite of programs and public-private partnerships supporting entrepreneurship and small business development opportunities for veterans and veterans’ families, including an intensive entrepreneurship boot camp.

Being as the President is proposing the initiatives as part of his his budget for the 2012/2013 fiscal year (FY 2013), congress will decide whether to approve . Bi-Partisan support is expected as thousands of service members will be hunting for work after their deployments.

Full text of President Obama's Jobs Corps proposal, click here. Defense Department press release, click here. 02/03/2012

ECONOMY ADDS MORE JOBS THAN EXPECTED IN JANUARY

More from the Emeritus Newsroom- The Department of Labor's Bureau of Labor Statistics today announced much better jobs statistics for January than expected. Expert had projected 150,000 jobs created in January, however, the BLS says Total nonfarm payroll employment rose by 243,000 in January, and he unemployment rate decreased to 8.3 percent. Job growth was widespread in the private sector, with large employment gains in professional and business services, leisure and hospitality, and manufacturing. Government employment changed little over the month. The unemployment rate declined by 0.2 percentage point in January to 8.3 percent; the rate has fallen by 0.8 point since August The number of unemployed persons declined to 12.8 million in January. Among the major worker groups, the unemployment rates for adult men (7.7 percent) and blacks (13.6 percent) declined in January. The unemployment rates for adult women (7.7 percent), teenagers (23.2 percent), whites (7.4 percent), and Hispanics (10.5 percent) were little changed. The jobless rate for Asians was 6.7 percent, not seasonally adjusted. In January, the number of job losers and persons who completed temporary jobs fell to 7.3 million. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.5 million and accounted for 42.9 percent of the unemployed. After accounting for the annual adjustments to the population controls, the employment-population ratio (58.5 percent) rose in January, while the civilian labor force participation rate held at 63.7 percent. The number of persons employed part time for economic reasons, at 8.2 million, changed little in January. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job. In January, 2.8 million persons were marginally attached to the labor force, essentially unchanged from a year earlier. These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 1.1 million discouraged workers in January, little different from a year earlier. Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.7 million persons marginally attached to the labor force in January had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Full text of BLS press release, click here. 02/03/2012

AMERICAN AIRLINES PLANS TO CUT 13,000 JOBS / PART OF BANKRUPTCY RESTRUCTURING

More from the Emeritus Newsroom- American Airlines announced today it plans to shed 13,000 jobs, terminate its defined pension plan and cut payments for retirees medical plans.

American informed employees earlier today that all groups, including management, must reduce their total costs by 20 percent. While the savings from each work group will be achieved somewhat differently, the plan provides that each will experience the same percentage reduction. These reductions would result in average annual employee-related savings of $1.25 billion from 2012 through 2017.

As described in its internal announcements today, American's business plan and proposals encompass a total reduction of approximately 13,000 employees. Included in the total employee impact is the expected result of a previously launched redesign of American's management and support staff structure that will reduce 15 percent of management positions. Consistent with the approach taken by other major airlines in their restructurings, American's plan also includes:

  • Outsourcing a portion of American's aircraft maintenance work, including seeking closure of the Fort Worth Alliance Airport (AFW) maintenance base, and certain airport fleet service clerk work;
  • Removing major structural barriers to operational flexibility, such as restrictions on code sharing and regional flying
  • Introducing work rule changes to increase productivity.

 American also said it will seek Bankruptcy Court approval to terminate its defined benefit pension plans. If the plans are terminated, American will contribute matching payments in a 401(k) plan. American also will seek to discontinue subsidizing future retiree medical coverage for current employees, but will offer access to these plans if employees choose to pay for them. American also proposes to implement common medical plans and contribution structures across all active employee groups.

The Pension Benefit Guaranty Corporation, which insures private defined pension plans, is battling American over its past payments due their plan, which were never made.

The PBGC said today, the American Airlines pensions are under funded by about $10 billion, and Americans' retirees would lose at least $1 billion in benefits if the plans end. Under federal law, if a company in bankruptcy wants to end its pensions, it must demonstrate that doing so is the only way it can reorganize.

PBGC Director Josh Gotbaum had this to say:

"Before American takes such a drastic action as killing the pension plans of 130,000 employees and retirees, it needs to show there is no better alternative. Thus far, they have failed to provide even the most basic information to decide that."

PBGC statement on American plan, click here. Earlier PBGC statement challenging American Airlines statements to employees, click here.

American Airlines statement on layoffs and cutbacks, click here. 02/01/2012

CONGRESSIONAL BUDGET OFFICE SAYS FEDERAL GOVERNMENT PAYS MORE THAN PRIVATE SECTOR FOR WORKERS WITH HIGH SCHOOL THROUGH MASTERS / PAYS LESS FOR WORKERS WITH DOCTORATE

More from the Emeritus Newsroom- It's no wonder there is animosity in the private sector over the money and benefits paid federal workers with high school diplomas up through those with master's degrees. To the outrage of private sector employers, the federal government is making the private sector compete for good workers, and keeps wages up.

A report just released from the Congressional Budget Office says the federal government employs about 2.3 million civilian workers—1.7 percent of the U.S. workforce— spread among more than 100 agencies in jobs that represent over 700 occupations. As a result, the government employs workers with a broad complement of talents, skills, and experience, and it competes with other employers for people who possess the mix of attributes needed to do the work of its agencies.

The difference between the wages of federal civilian employees during the 2005–2010 period and those of
similar private-sector employees varied widely depending on the employees’ educational attainment.

 Workers whose highest level of education was a bachelor’s degree earned roughly the same hourly wages, on average, in both the federal government and the private sector. However, federal civilian workers with no more than a high school education earned about 21 percent more, on average, than similar workers in the private sector, whereas federal workers with a professional degree or doctorate earned about 23 percent less, on average, than their private sector counterparts.
 Overall, the federal government paid 2 percent more in total wages than it would have if average wages had been comparable with those in the private sector, after accounting for certain observable characteristics of workers.

During the 2005–2010 period, the federal and private sectors differed much more with regard to the costs that employers incurred in providing current and future benefits—including health insurance, retirement benefits, and paid vacation—than they did with regard to wages. Again, the extent of that difference varied according to workers’ educational attainment.
 Average benefits were 46 percent higher for federal employees whose highest level of education was a
bachelor’s degree than for similar private-sector employees and 72 percent higher for federal employees
with no more than a high school education than for their private-sector counterparts. Among employees with a doctorate or professional degree, by contrast, average benefits were about the same in the two sectors.

A REPORT USING BUREAU OF LABOR STATISTICS DATA TAKES A DIFFERENT VIEW. The report, issued by the Federal Salary Council last November, states, private sector pay increased about 1.6 percent between March 2010 and March 2011 as measured by the Employment Cost Index (ECI) for wages and salaries, private sector workers, while Federal employees did not receive statutory pay increases in 2011 due to the 2-year statutory pay freeze. While GS (federal general services employees) pay gaps are affected by many factors, an average pay gap of approximately 49 percent in 2010 could be expected to grow to about 51 percent due to the private sector's 1.6 percent pay growth rate, given that GS employees did not receive a base pay increase in 2011. Note that these pay gaps exclude current locality pay rates received by GS employees. Since locality pay is paid on base GS rates, we exclude locality pay when measuring pay gaps. Factoring in the current average locality pay rate of 19.85 percent would reduce the average 2011 pay gap to about 26.3 percent, compared to 24.05 percent for 2010.

Full text of CBO report (PDF download 28 pages), click here. Federal Salary Council Report from November 2011, click here. Must read article from Washington Post, click here. 01/31/2012

NOVARTIS SUBSIDIARY MUST PAY $99 MILLION FOR CHEATING ON SALES REPS OVERTIME

More from the Emeritus Newsroom- A federal judge has approved a $99 million settlement of a class action lawsuit filed by sales representatives against Novartis and a subsidiary. The settlement, which was filed in the U-S District Court for the Southern District of New York, was granted preliminary approval this week.

The sales reps claimed their jobs were not exempt from wage and hourly laws. The district court ruled they were not exempt from overtime pay and an appeals court upheld the decision, then sent the case back to the district court to settle compensation. Two MUST READ links. Statement from Sanford Wittels & Heisler, attorneys for the sales reps click here , and an article on the case and a similar case pending in the U-S Supreme Court involving GalxoSmithKline and its sales reps. 01/27/2012

NEW UNEMPLOYMENT FILINGS DOWN 50,000 / REAL EARNINGS DOWN

More from the Emeritus Newsroom- In the week ending January 14, the advance figure for seasonally adjusted initial claims was 352,000, a decrease of 50,000 from the previous week's revised figure of 402,000. The 4-week moving average was 379,000, a decrease of 3,500 from the previous week's revised average of 382,500.

States reported 3,026,855 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending December 31, an increase of 100,179 from the prior week. There were 3,719,607 claimants in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending December 31 were in Alaska (6.9), Connecticut (6.6), Oregon (5.0), Wisconsin (4.9), Pennsylvania (4.7), Idaho (4.5), Rhode Island (4.5), Montana (4.3), New Jersey (4.2), Arkansas (4.0), Illinois (4.0), and Washington (4.0).

The largest increases in initial claims for the week ending January 7 were in New York (+29,389), California (+22,168), Texas (+13,946), North Carolina (+7,865), and Georgia (+7,225) while the largest decreases were in Wisconsin (-7,657), Michigan (-5,208), Iowa (-4,675), New Jersey (-4,667), and Kentucky (-3,577).

Real average hourly earnings for all employees rose 0.2 percent from November to December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This change stems from a 0.2 percent increase in average hourly earnings, while the Consumer Price Index for All Urban Consumers (CPI-U) remained unchanged.Real average weekly earnings rose 0.5 percent over the month, as a result of the increase in real average hourly earnings and a 0.3 percent rise in the average workweek. Since reaching a peak in October 2010, real average weekly earnings have fallen 1.1 percent. However, real average hourly earnings fell 0.9 percent, seasonally adjusted, from December 2010 to December 2011. A 0.6 percent increase in the average workweek, combined with the decline in real average hourlyearnings, resulted in a 0.3 percent decrease in real average weekly earnings during the same period.

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment. Similar to last month, the energy index declined in December and offset increases in other indexes. The gasoline index declined for the third month in a row and the household energy index declined as well. The food index rose in December, with the index for food at home turning up after declining last month.

The index for all items less food and energy increased 0.1 percent in December after rising 0.2 percent in November. The indexes for shelter, recreation, medical care, and tobacco all posted increases, while the indexes for used cars and trucks, new vehicles, and apparel all declined.

The all items index has risen 3.0 percent over the last 12 months, a decline from last month's 3.4 percent figure. Recent declines in the energy index have brought its 12-month change down to 6.6 percent from 19.3 percent in September. The 12-month change in the index for all items less food and energy held at 2.2 percent, while the 12-
month change in the food index edged up from 4.6 percent to 4.7percent.

Full text of Department of Labor initial claims press release, click here. Full text of Real Earnings press release, click here. Full text of Consumer Price Index press release, click here. 01/19/2012

OBAMA SAYS "NO" TO KEYSTONE PIPELINE / ALTERNATIVE PROPOSALS STILL POSSIBLE

More from the Emeritus Newsroom- The petroleum industry claimed the Keystone Pipeline, which would bring oil from Canadian oil sand pits, to the U-S was a shovel ready jobs project that could help the country free it self from tenuous middle eastern countries. Environmentalists panned the idea saying it did nothing to promote energy alternatives to fossil fuels. Some businesses and unions, involving railroads and petroleum trucking companies that already haul the bulk of supplies in this country, saw it as an expensive end run around them, with no benefit for consumers, and no help for the county's current crumbling infrastructure. Congressional Republicans had hoped to force Obama into approving the project before the end of the year as the President had hoped. The President gave him his decision today. It was a decisive, "No". In a statement outlining administration concerns, White House officials claim that since 2008 U-S oil production has increased while imports have decreased. And that,

  • In 2011, U.S. crude oil production reached its highest level since 2003, increasing by an estimated 90,000 barrels per day (bbl/d) over 2010 levels to 5.57 million bbl/d.   
  • U.S. natural gas production grew by an estimated 7.4 percent in 2011– the largest year-over-year volumetric increase – and easily eclipsed the previous all-time production record set in 1973. 
  • Overall, oil imports have been falling since 2008, and net imports as a share of total consumption declined from 57 percent in 2008 to 45 percent in 2011 – the lowest level since 1995.

In his own statement rejecting the proposal, President Obama wrote,

"Earlier today, I received the Secretary of State’s recommendation on the pending application for the construction of the Keystone XL Pipeline.  As the State Department made clear last month, the rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline’s impact, especially the health and safety of the American people, as well as our environment.  As a result, the Secretary of State has recommended that the application be denied.  And after reviewing the State Department’s report, I agree.  This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people.  I’m disappointed that Republicans in Congress forced this decision, but it does not change my Administration’s commitment to American-made energy that creates jobs and reduces our dependence on oil.  Under my Administration, domestic oil and natural gas production is up, while imports of foreign oil are down.  In the months ahead, we will continue to look for new ways to partner with the oil and gas industry to increase our energy security –including the potential development of an oil pipeline from Cushing, Oklahoma to the Gulf of Mexico – even as we set higher efficiency standards for cars and trucks and invest in alternatives like biofuels and natural gas.  And we will do so in a way that benefits American workers and businesses without risking the health and safety of the American people and the environment". Full text of President Obama's statement, click here. Additional White House statement, click here . MUST SEE YOUTUBE VIDEO OF STORY FROM PBS NEWSHOUR, CLICK HERE. 01/18/2012

Proposed Keystone Pipeline

FEDERAL RESERVE SAYS 4TH QUARTER 2011 INDUSTRIAL PRODUCTION UP

More from the Emeritus Newsroom- The Federal Reserve today reported industrial production increased 0.4 percent in December after having fallen 0.3 percent in November. For the fourth quarter as a whole, industrial production rose at an annual rate of 3.1 percent, its 10th consecutive quarterly gain. In the manufacturing sector, output advanced 0.9 percent in December with similarly sized gains for both durables and nondurables. The output of utilities fell 2.7 percent, as unseasonably warm weather reduced the demand for heating; the output of mines moved up 0.3 percent. At 95.3 percent of its 2007 average, total industrial production in December was 2.9 percent above its level of a year earlier. The capacity utilization rate for total industry rose to 78.1 percent, a rate 2.3 percentage points below its long-run (1972--2010) average.

Manufacturing production climbed 0.9 percent in December to a level 3.7 percent above that of 12 months earlier; gains in December were widespread among the major industry groups. The factory operating rate moved up 0.6 percentage point to 75.9 percent, but it was still 3.1 percentage points below its long-run average of 79.0 percent. For the fourth quarter, manufacturing production increased at an annual rate of 3.9 percent.

The output of durable goods rose 0.9 percent in December. The indexes for wood products, primary metals, and machinery registered gains of more than 2 percent; the only major industries that recorded substantial decreases were nonmetallic mineral products, aerospace and miscellaneous transportation equipment, and furniture. For the fourth quarter, the output of durables moved up at an annual rate of 6.3 percent, with gains of nearly 10 percent or more in wood products; primary metals; electrical equipment, appliances, and components; motor vehicles and parts; and aerospace and miscellaneous transportation equipment.

The production of nondurable goods advanced 0.8 percent in December. The indexes for textile and product mills, for petroleum and coal products, for chemicals, and for plastics and rubber products all gained 1.0 percent or more, while the indexes both for paper and for apparel and leather fell. The output of nondurables increased at an annual rate of 1.5 percent in the fourth quarter. The index for other manufacturing (non-NAICS), which consists of publishing and logging, jumped 2.3 percent in December after having dropped 1.9 percent in November.

Full text of Federal Reserve press release, click here. 01/18/2012

FEDERAL RESERVE SAYS ECONOMY REGISTERED MODEST TO MODERATE GROWTH DURING END OF 2011 / MOODY'S PROJECTS IMPROVING JOB CREATION

More from the Emeritus Newsroom- Today's Beige Book report on the U-S economy from the Federal Reserve shows national economic activity expanded at a modest to moderate pace during the reporting period of late November through the end of December. Seven districts characterized growth as modest; of the remaining five, New York and Chicago noted a pickup in the pace of growth, Dallas and San Francisco reported moderate growth, and Richmond indicated that activity flattened or improved slightly. Compared with prior summaries, the reports on balance suggest ongoing improvement in economic conditions in recent months, with most Districts highlighting more favorable conditions than identified in reports from the late spring through early fall. Consumer spending picked up in most Districts, reflecting significant gains in holiday retail sales compared with last year’s season, and activity in the travel and tourism sector expanded in most areas.
Demand strengthened further for non financial services, including professional and transportation services.
Manufacturing activity generally continued to expand, although the pace of growth has slowed for
selected sub sectors such as technology products. Agricultural producers and extractors of natural
resources reported generally robust conditions. Activity stayed sluggish in residential real estate markets,
and conditions in commercial real estate markets remained somewhat soft overall but showed signs of
ongoing improvement in several Districts. Reports from financial institutions generally indicated a slight
up tick in loan demand by businesses, along with improvements in overall credit quality.
Upward price pressures and price increases remained quite limited for most categories of final
goods and services, as the effects of prior increases in the costs of selected inputs have eased. Upward
wage pressures were modest overall, although a few Districts noted substantial compensation increases
for workers with specialized skills in selected sectors and regions. Also today, Moody's analyst Mark Zandi issued a jobs forecast for 2012. Although he doesn't expect 2012 to be a breakout year, Zandi projects job gains of about 130,000 a month — about 1.6 million for the year — in line with 2011.

Moody's also predicts:

•Three categories — professional and business services, education and health care, and leisure and hospitality — will lead job gains, collectively producing more than 1 million. The booming energy sector will also continue to hire.

Sun Belt states hammered by the recession — Florida, Arizona, Georgia and Nevada — will rebound some as an easing of the foreclosure crisis lets homeowners move more easily. All four are projected to be among the 10 fastest-growing job markets.

Rust Belt manufacturing bastions such as Illinois, Ohio and Indiana will generate jobs more slowly as the European financial crisis hampers exports.

Driving the improvement in overall job growth is a pickup in hiring and confidence among small businesses as banks modestly ease credit standards. Small firms, particularly start-ups, typically account for two-thirds of the new jobs created in a recovery. Also, productivity gains that have allowed companies to do more with fewer workers are slowing, government reports show.

Full text of Federal Reserve Beige Book report , click here. Zandi and Moody's article, click here. 01/12/2012

JOB OPENINGS AND LABOR TURNOVER IMPROVING CHANCES FOR JOB SEEKERS

More from the Emeritus Newsroom- The number of job openings in November was 3.2 million, unchanged from October. Although the number of job openings remained below the 4.4 million openings when the recession began in December 2007, the level in November was 1.0 million higher than in July 2009 (the most recent trough for the series). The number of job openings has increased 30 percent since the end of the recession in June 2009.The number of job openings in November (not seasonally adjusted) was little changed over the year for total nonfarm, total private, and government. Several industries saw increases in the number of job openings over the year, while the number of job openings decreased for finance and insurance, professional and business services, and federal government. The Midwest and South regions had increases in the number of job openings and the West experienced a decline over the year.

In November, the hires rate was little changed at 3.2 percent for total nonfarm. The hires rate was essentially unchanged over the monthin all industries and regions. The number of hires in November was 4.1 million, up from 3.6 million in October 2009 (the most recent trough) but below the 5.0 million hires recorded when the recession began in December 2007. The number of hires has increased by 15 percent since the end of the recession in June 2009. Over the past 12 months, the hires rate (not seasonally adjusted) was little changed for total nonfarm, total private, and government. The hires rate increased over the year in arts, entertainment, and recreation and was essentially unchanged in every other industry. The hires rate was essentially unchanged in all four regions.

The number of layoffs and discharges for total nonfarm was 1.7 million in November, down from a peak of 2.5 million in February 2009. For the 16 months ending in November 2011, the number of layoffs and discharges has been at or below 1.8 million—the level at the start of the recession.

Full text of Bureau of Labor Statistics press release, click here. 01/10/2012

ANOTHER SLIGHT IMPROVEMENT FOR UNEMPLOYMENT RATE

More from the Emeritus Newsroom- Both the number of unemployed persons (13.1 million) and the unemployment rate (8.5 percent) continued to trend down in December. The unemployment rate has declined by 0.6 percentage point since August.
Among the major worker groups, the unemployment rate for adult men decreased to 8.0 percent in December. The jobless rates for adult women (7.9 percent), teenagers (23.1 percent), whites (7.5 percent), blacks (15.8 percent), and Hispanics (11.0 percent) showed little change. The jobless rate for Asians was 6.8 percent, not seasonally adjusted. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.6 million and accounted for 42.5 percent of the unemployed. The civilian labor force participation rate (64.0 percent) and the employment-population ratio (58.5 percent) were both unchanged over the month. The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) declined by 371,000 to 8.1 million in December. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job. About 2.5 million persons were marginally attached to the labor force in December, little different from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were 945,000 discouraged workers in December, a decrease of 373,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.6 million persons marginally attached to the labor force in December had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Full text of BLS press release, click here. 01/06/2012

BOEING TO CLOSE WICHITA KANSAS PLANT / LOSS OF 2,160 EMPLOYEES

More from the Emeritus Newsroom - Boeing has announced it is closing the Wichita, Kansas plant which will bring an end to an estimated 2,160 jobs there. Operations at the plant will be taken over by other plants in San Antonio, Texas, Everett, Washington and Oklahoma City. That will mean additional hiring in those cities.

In a statement released by the company, Boeing Defense, Space & Security, Vice President and General Manager Mark Bass said, "In this time of defense budget reductions, as well as shifting customer priorities, Boeing has decided to close its operations in Wichita to reduce costs, increase efficiencies, and drive competitiveness," said Bass. "We will begin program transitions in the coming months, with the complete closure of the site scheduled for the end of 2013. We do not anticipate job reductions as a result of this decision until early in the third quarter of 2012".

Boeing Wichita is the base for the company's Global Transport & Executive Systems business and its B-52 and 767 International Tanker programs. The facility also provides support for flight mission planning and integrated logistics.

Future aircraft maintenance, modification and support work will be placed at the Boeing facility in San Antonio. Engineering work will be placed at the Boeing facility in Oklahoma City. Although work on the KC-46 tanker will now be performed in Puget Sound, Wash., the 24 Kansas suppliers on the program will be providing vital elements of the aircraft as originally planned.

"The company spent more than $3.2 billion with approximately 475 Kansas suppliers in 2011, spanning its commercial and defense businesses, making it the fourth largest state in Boeing's supplier network," said Bass. "Based on Boeing Commercial Airplanes growth projections for the next few years, Boeing anticipates even more growth for suppliers in Kansas. Boeing values its long-term partnership with Kansas,
and we will continue to work with all of our stakeholders in Kansas in support of a robust aerospace industry in the state".

Full text of Boeing statement, click here . Wichita Eagle story on community impact, click here. 01/05/2012

351 OF 372 METRO AREAS HAVE LOWER JOBLESS RATES OVER 2010

More from the Emeritus Newsroom-Unemployment rates were lower in November than a year earlier in 351 of the 372 metropolitan areas, higher in 16 areas, and unchanged in 5 areas, the U.S. Bureau of Labor Statistics reported today. Eight areas recorded jobless rates of at least 15.0 percent, while 25 areas registered rates of less than 5.0 percent. Two hundred thirty-nine metropolitan areas reported over-the-year increases in non farm payroll employment, 127 reported decreases, and 6 had no change. The national unemployment rate in November was 8.2 percent, not seasonally adjusted, down from9.3 percent a year earlier. In November, 58 metropolitan areas reported jobless rates of at least 10.0 percent, down from 112 areas a year earlier, while 129 areas posted rates below 7.0 percent, up from65 areas in November 2010. El Centro, Calif., and Yuma, Ariz., recorded the highest unemployment rates in November 2011, 27.2 and 23.7 percent, respectively. The six remaining areas with jobless rates of at least 15.0 percent were located in California. Bismarck, N.D., registered the lowest unemployment rate, 2.8 percent. The areas with the next lowest rates were Fargo, N.D.-Minn., and Lincoln, Neb., 3.1 and 3.2 percent,respectively. A total of 224 areas recorded November unemployment rates below the U.S. figure of 8.2 percent, 137 areas reported rates above it, and 11 areas had rates equal to that of the nation.

Full text of Labor Department press release, click here. 01/03/2012

VIDEO: THE PROMISE AND PITFALLS OF JOB RETRAINING / JOB LOSS AMONG THE LONG TERM EMPLOYED

More in this YouTube video from the Brookings Institution (7 Minutes), click here- 12/18/2011

OBAMA EXTENDS OVERTIME AND MINIMUM WAGE RULES FOR HOME CARE WORKERS

More from the Emeritus Newsroom- The White House announced today proposed rule changes that would provide minimum wage and overtime protections for nearly two million workers who provide in-home care services for the elderly and infirmed.

According to a statement from the White House, many of these workers provide critical in-home health care services such as tube feeding, wound care, or assistance with physical therapy, and deserve the protections provided under the Fair Labor Standards Act (FLSA). Today’s announcement is the latest in a series of executive actions the Obama Administration is taking to strengthen the economy and move the country forward because we can’t wait for Congress to act. 

Currently, workers classified as ‘companions’ are exempt from the FLSA’s minimum wage and overtime pay requirements. When established in 1974, such exemptions were meant to apply to casual babysitters and companions for the elderly and infirm, not workers whose vocation was in-home care service, and who were responsible for their families’ support. With an aging American population, there has been increased demand for long-term in-home care, and as a result the in-home care industry has grown substantially.  Today’s 1.79 million home care workers are professional caregivers, not mere companions.  In view of this changed landscape, the proposed regulation reconsiders whether the current exemption is now too broad. Of the 1.79 million home care workers, 1.59 million are employed by staffing agencies of which over 92% are women, nearly 30% are African American, 12% are Hispanic and close to 40% rely on public benefits such as Medicaid and food stamps.

Today’s proposed rule would expand minimum wage and overtime protections by ensuring that all home care workers employed by third parties, like staffing agencies, will receive protections. It would also ensure that those employed by families and performing skilled in-home care work, such as medically related tasks for which training is typically a prerequisite, are covered. However, those employed by families and truly engaged in tasks related to fellowship and protection- such as visiting with friends and neighbors or engaging in hobbies- would still be considered ‘companions’ and will not be subject to wage protections.

This issue gained national attention when, in 2007, the Supreme Court ruled that Evelyn Coke, a home care worker who worked as much as 70 hours a week, was not entitled to overtime pay under existing regulations. Thus, any change to these rules requires action by Congress or the Department of Labor. There have been bills introduced in numerous Congresses to address this issue (including legislation that then-Senator Obama co-sponsored in the 110th Congress) but these bills have not moved forward. The Department of Labor is therefore now proposing regulations to change these rules and ensure that home care workers like Evelyn Coke will have basic wage protections.

The Labor Department's Wage and Hour Division is responsible for enforcing the Fair Labor Standards Act that was passed in 1938 to provide minimum wage and overtime protections for workers, to prevent unfair competition among businesses based on subminimum wages, and to spread employment by requiring employers whose employees work excessive hours to pay employees at one-and-one-half times the regular rate of pay for all hours worked over 40 in a week. Upon publication of the proposed rule, interested parties will be invited to submit comments at www.regulations.gov. More information, including the proposed rule and fact sheet is available on the Department's Companionship Webpage at www.dol.gov/whd/flsa/companionNPRM.htm.

Full text of White House statement, click here- 12/15/2011

ACTIVISTS FOR POOR PUSH BACK AGAINST REPUBLICAN PROPOSALS TO CUT UNEMPLOYMENT BENEFITS / VIDEO: STATES CONTINUE TO BORROW MONEY TO PAY BENEFITS

More from the Emeritus Newsroom- According to legislative experts at the National Employment Law Project, the leadership of the House of Representatives wants to slash the federal UI programs and also do substantial harm to the basic state UI system. The current benefits run out December 31st.

The statement from NELP explains,

"These misguided and mean-spirited proposals are contained in a bill sponsored by the Chairman of the Ways and Means Committee, Representative Dave Camp (R-MI). The Camp bill (H.R. 3630) abandons millions of U.S. workers and those communities hardest hit by the most severe jobs crisis since the Great Depression, including Rep. Camp’s own constituents in Michigan, while inflicting irreparable damage on the nation’s UI safety net. Rather than negotiate across party lines to forge consensus to maintain the critical lifeline of benefits that now serves more than six-and-a-half million U.S. workers and their families, the Camp bill cuts the federal UI program by more than half in 2012, eliminating 40 weeks of benefits. Perversely, the most severe and immediate cuts are directed at those states with the highest rates of unemployment. Cutting benefits so drastically for those workers and communities who have been impacted the worst by the recession and slow recovery is a draconian measure, even to the most jaded observer of politics in today’s Congress. Taking into account the documented impact of UI, which has generated up to $2 in economic activity for every $1 the federal government has spent on UI during this recession,1 NELP estimates that the House leadership’s proposal would result in as much as $22 billion in lost economic growth to the nation’s economy, which also translates into a loss of at least 140,000 jobs next year. The reduced level of income support provided by federally-funded unemployment benefits will, in turn, further strain state and local budgets due to the loss of payroll taxes, sales taxes and other revenue generated by spending on local goods and services. At a time when more than a third of the nation’s unemployed have been jobless for a year or more, eliminating over half of the unemployment benefits available for the long-term unemployed will also drive these workers and their families to greater reliance on dwindling state, local and community resources like food pantries and shelters. In addition to slashing the federal jobless benefit programs, H.R. 3630 also takes direct aim at the core principles of the basic state UI program, which have been honored by every Congress since the program was created in response to the Great Depression. Without providing any additional funding, except out of the pockets of the unemployed, the bill imposes extreme burdens and requirements on the state agencies that administer the UI programs and undermines the primary authority delegated to the states by the Social Security Act of 1935 to determine eligibility for unemployment benefits. Of special significance, H.R. 3630 imposes a high school diploma or GED requirement as a condition of eligibility on all recipients of state unemployment benefits, which unfairly penalizes workers in those communities that already have the least access to quality education and training. In addition, the bill opens the door to “means testing” in the UI program by imposing income limits on the benefits. Perhaps most disturbing, the Camp bill promotes state drug testing for workers to qualify for unemployment benefits—a deep affront to the character of millions of Americans who desperately want get back to work. Devising new ways to insult the unemployed only distracts from the current debate over how to best restore the nation’s economy to strong footing and the discussion over how to best support the unemployed and get them back to work. H.R. 3630 takes partisan politics to a new level, while sacrificing the critical needs of today’s unemployed families and the struggling economy.Full text of NELP statement, click here. 12/13/2011

NATIONAL EMPLOYMENT LAW PROJECT PROMOTES FUNDRAISING DRIVE, VIDEO TO FIGHT BACK AGAINST WORKER RIGHTS EROSION

More from the Emeritus Newsroom- The National Employment Law Project is undertaking a large scale fund raising campaign to save unemployment benefits and create jobs. NELP has completed and uploaded a video explaining their goals. The link is available at end of this article. The video tells the stories of two workers—Melissa from Michigan, and Debra from Brooklyn—and how NELP is making a difference for them and for millions of other workers across America.   

Executive Director Christine Owens, in an e-mail sent to supporters, states, "Our nation has overcome enormous challenges before, in ways that made us stronger, fairer, and more prosperous.  NELP believes that today, as well, we can restore the promise of economic opportunity for all who work in America—and to ensure a brighter future for our nation, we must do so".   

MUST See YouTube video of NELP campaign, click here - NELP Campaign donation page, click here- 12/10/2011

UNEMPLOYMENT DROPS .4 PER CENT IN NOVEMBER / POTENTIAL TROUBLE STILL LIES BELOW SURFACE

More from the Emeritus Newsroom- Employment improved more than expected in November with signals job market is still far from settled. According to the U-S Labor Department's Bureau of Labor Statistics, the unemployment rate fell by 0.4 percentage point to 8.6 percent in November, and nonfarm payroll employment rose by 120,000, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in retail trade, leisure and hospitality, professional and business services, and health care. Government employment continued to trend down.

In November, the unemployment rate declined by 0.4 percentage point to 8.6 percent. From April through October, the rate held in a narrow range from 9.0 to 9.2 percent. The number of unemployed persons, at 13.3 million, was down by 594,000 in November. The labor force, which is the sum of the unemployed and employed, was down by a little more than half that amount.

Among the major worker groups, the unemployment rate for adult men fell by 0.5 percentage point to 8.3 percent in November. The jobless rate for whites (7.6 percent) also declined, while the rates for adult women (7.8 percent), teenagers (23.7 percent), blacks (15.5 percent), and Hispanics (11.4 percent) showed little or no change. The jobless rate for Asians was 6.5 percent, not seasonally adjusted.

In November, the number of job losers and persons who completed temporary jobs declined by 432,000 to 7.6 million. The number of long-term unemployed (those jobless for 27 weeks and over) was little changed at 5.7 million and accounted for 43.0 percent of the unemployed.

The civilian labor force participation rate declined by 0.2 percentage point to 64.0 percent. The employment-population ratio, at 58.5 percent, changed little.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) dropped by 378,000 over the month to 8.5 million. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

In November, 2.6 million persons were marginally attached to the labor force, about the same as a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 1.1 million discouraged workers in November, a decrease of 186,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.5 million persons marginally attached to the labor force in November had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Analysis of today's announcement seemed largely cautious. Gary Burtless, Senior Fellow, Economic Studies , The Brookings Institution, concluded, "The drop in the size of the labor force, even if it is only temporary, should serve as a reminder that there are millions of adults who would be looking for work or gainfully employed if we were nearer to full employment. Since the end of the last economic expansion the labor force participation rate has fallen 2.0 percentage points; it now stands at 64%. The current participation rate is only 0.1% above a 27-year low, one that was attained in July of this year. In a healthier job market the participation rate would be at least 1.5% higher. Even though the job market is healthier than it was earlier this year, it is still a long way away from robust health".

Full text of Bureau of Labor Statistics press release, click here- Gary Burtless online analysis, click here- More in this YouTube video from Voice of America, click here- More in this YouTube video from PBS News Hour- MUST SEE youTube video of News Hour interview with former President Bill Clinton on his book, "Back to Work"- 12/02/2011

PRESIDENT SIGNS VETERANS JOBS BILL

More from the Emeritus Newsroom- One of the few bi-partisan legislative actions of this congress is the recent passage of , "The VOW to Hire Heroes Act of 2011". Today President Obama signed the act into law, saying,

"While we've added more than 350,000 private sector jobs over the last three months, we've got 850,000 veterans who can't find work.  And even though the overall unemployment rate came down just a little bit last month, unemployment for veterans of Iraq and Afghanistan continued to rise.  And that isn’t right.  These men and women are the best that America has to offer.  They are some of the most highly trained, highly educated, highly skilled workers that we have.  If they can save lives on the battlefield, then they can save a life in an ambulance.  If they can manage convoys moving tons of equipment over dangerous terrain, they can manage a company’s supply chain.  If they can track millions of dollars of assets in Iraq, they can balance the books of any company here in the United States".

The House approved the act last month, the Senate passed it earlier this month and the House approved changes made in the Senate. Specifics of the act can be seen in the story below from November 10, 2011 (Senate passes Veterans Jobs Bill).

Click here for YouTube video of President Obama's speech and bill signing today- Text of President's speech, click here- 11/21/2011

VIDEO: START UPS ARE THE KEY TO JOB GROWTH- BROOKINGS INSTITUTION (6 MINUTES), CLICK HERE FOR YOUTUBE PLAYBACK - 11/21/2011

WORKERS REAL EARNINGS DROP 1.6% FROM OCTOBER 2010 TO OCTOBER 2011

More from the Emeritus Newsroom- Real average hourly earnings for all employees rose 0.3 percent from September to October, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This increase stems from a 0.2 percent increase in average hourly earnings and a 0.1 percent decline in the Consumer Price Index for All Urban Consumers (CPI-U). Real average weekly earnings rose 0.3 percent over the month, as a result of the increase in real average hourly earnings combined with the unchanged average workweek.

Real average hourly earnings fell 1.6 percent, seasonally adjusted, from October 2010 to October 2011.
An unchanged average workweek combined with the decline in real average hourly earnings resulted in a
1.7 percent decrease in real average weekly earnings during the same period.

Full text of Bureau of Labor Statistics press release and more detailed analysis, click here. 11/15/2011

WHY THERE ARE TWO AMERICAS - VIDEO FROM THE CENTER FOR AMERICAN PROGRESS (3 MINUTES)

More in this YouTube video from the Center for American Progress, click here- 11/15/2011

DOES U-S MANUFACTURING STAND A CHANCE IN THE GLOBAL MARKETPLACE? BROOKINGS INSTITUTION VIDEO (7 MINUTES)

More in this YouTube video from the Brookings Instituttion, click here- 11/15/2011

SENATE PASSES VETERANS JOBS BILL

More from the Emeritus News Employment Page- The VOW to Hire Heroes Act of 2011 passed the Senate today on a vote of 95-0, in a rare show of bipartisanship. The House passed it last month 405-16, but needed to approve changes made in the Senate. The act provides tax credits to businesses that hire veterans who are out of work — $5,600 for each veteran and $9,600 for each disabled veteran. According to proponents of the measure, provisions of the VOW to Hire Heroes Act, once signed into law, will include:

•Tax credit of up to $5,600 for hiring veterans who have been looking for a job for more than six months, as well as a $2,400 credit for veterans who are unemployed for more than four weeks, but less than six months.

• Tax credit of up to $9,600 for hiring veterans with service-connected disabilities who have been looking for a job for more than six months.

• Makes the Transition Assistance Program (TAP) — an interagency workshop coordinated by the departments of Defense, Labor and Veterans Affairs — mandatory for service members moving on to civilian life to help them secure meaningful jobs through resume-writing workshops and career counseling.

• Expands education and training opportunities for older veterans by providing 100,000 unemployed veterans of past eras and wars with up to one year of additional Montgomery GI Bill benefits for education or training programs at community colleges and technical schools.

• Provides disabled veterans up to one year of additional vocational rehabilitation and employment benefits.

• Allows service members to start looking for federal jobs before separating from active duty in order to facilitate a truly seamless transition from the military to jobs at federal agencies.

The Department of Veterans Affairs says the unemployment rate for about a quarter-million veterans who have returned from Iraq and Afghanistan stands at 12.1 percent. Of the estimated one million jobless veterans in America, two-thirds of them fall within the 35-64 age group. Details of VOW Act from Thomas bill summary, click here. 11/10/2011

IS OVER REGULATION DRIVING U-S COMPANIES OFF SHORE? NO, SAYS ECONOMIC ANALYSIS

More in this business article from the New York Times, click here. Rankings by country of business competitiveness for 2011-2012 from the World Economic forum, click here. . World Bank PDF report, click here. YouTube video summary of report, click here. 11/07/2011

UNEMPLOYMENT RATE DROPS SLIGHTLY / 80,000 JOBS ADDED IN OCTOBER

More from the Emeritus Newsroom- Nonfarm payroll employment continued to trend up in October (+80,000), and the unemployment rate was little changed at 9.0 percent, the U.S. Bureau of Labor Statistics reported today. Employment in the private sector rose, with modest job growth continuing in professional and businesses services, leisure and hospitality, health care, and mining. Government employment continued to trend down. Household Survey Data. Both the number of unemployed persons (13.9 million) and the unemployment rate (9.0 percent) changed little over the month. The unemployment rate has remained in a narrow range from 9.0 to 9.2 percent since April. Among the major worker groups, the unemployment rate declined for blacks (15.1 percent) in October, while the rates for adult men (8.8 percent), adult women (8.0 percent), teenagers (24.1 percent), whites (8.0 percent), and Hispanics (11.4 percent) showed little or no change. The jobless rate for Asians was 7.3 percent, not seasonally
adjusted. In October, the number of long-term unemployed (those jobless for 27 weeks and over) declined by 366,000 to 5.9 million, or 42.4 percent of total unemployment. The civilian labor force participation rate remained at 64.2 percent in October, and the employment-population ratio was little changed at 58.4 percent.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) decreased by 374,000 to 8.9 million in October. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

In October, 2.6 million persons were marginally attached to the labor force, about the same as a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had
not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 967,000 discouraged workers in October, a decrease of 252,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.6 million persons marginally attached to the
labor force in October had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Employment in professional and business services continued to trend up in October (+32,000) and has grown by 562,000 over the past 12 months. Within the industry, there have been modest job gains in recent months
in temporary help services and in management and technical consulting services.

Government employment continued to trend down over the month (-24,000), with most of the October decline in the non-educational component of state government. Employment in both state government and local
government has been trending down since the second half of 2008.

Full text of Labor Department press release, click here. 11/04/2011

DOES U-S MANUFACTURING STAND A CHANCE IN THE GLOBAL MARKETPLACE?

More in this YouTube video ( 7 Minutes) from the Brookings Institution, click here. 11/04/2011

WHY RECENT GOVERNMENT REPORTS OFFER FUEL FOR THE "OCCUPY WALL STREET" MOVEMENT

More in this MUST READ article from the Economic Policy Institute, click here- Congressional Budget Office October 2011 report on distribution of income, click here- Census Bureau October 2011 report on income inequality, click here- 11/01/2011

WHIRLPOOL TO CUT 5,000 JOBS WORLDWIDE / TO CLOSE FT. SMITH ARK. PLANT

More from the Emeritus Newsroom- About 10% of the total workforce at Whirlpool Corporation will be eliminated due to weak demand for the company's products. In a statement today, the company said, "Third-quarter operating profit totaled $136 million compared with $234 million in the prior year.  Weaker global demand and higher raw material and oil-related costs during the quarter offset the benefits of ongoing productivity, cost reduction initiatives and previously announced price increases.

To compensate for those conditions, the company announced:

  • The company's cost and capacity reduction plans include a workforce reduction of more than 5,000 positions primarily within North America and Europe (approximately a 10 percent workforce reduction in those regions). These plans include:
    • Reduction of approximately 1,200 salaried positions.
    • Closure of the refrigeration manufacturing facility in Fort Smith, Ark. by mid-2012. Production from Fort Smith will be consolidated into current North American sites to leverage existing resources and capacity.
    • Relocation of dishwasher production from Neunkirchen, Germany to Poland in January 2012.
    • Additional organizational efficiency actions in North America and Europe.
  • Overall capacity is expected to be reduced by approximately 6 million units based on today's announcement and other actions.

These actions are expected to result in $400 million in annual cost savings by the end of 2013. The combination of these plans with announced price increases are expected to accelerate margin growth beginning in 2012. Restructuring expenses totaling approximately $500 million will be incurred over the period beginning in the fourth quarter of 2011 through 2013. The company now anticipates recording restructuring expenses of approximately $160 million in 2011 compared with its previous estimate of $75 million to $100 million.

Whirlpool received $19 million as part of the stimulus legislation passed by congress in 2008-2009.

Full text of Whirlpool statement, click here. 10/28/2011

JOB SEEKERS, FEDS, UPSET OVER USA-JOBS WEBSITE CRASH

More in this article from the Washington Post, click here- 10/27/2011

OBAMA SAYS JOBS ACT AND COMPANIES PROMISE 25,000 JOBS FOR VETS AND FAMILIES / STUMPS ON BUS TOUR IN VIRGINIA

More from the Associated Press, click here - Click here for YouTube video (25 Minutes) of Michelle and President Obama on vet jobs announcement. 10/19/2011

REPORT SAYS RECOVERY DEPENDS ON REVERSING TREND FOR LOW WAGE JOBS

More from the Emeritus Newsroom- Research for the National Employment Law Project shows recovery depends not only on jobs, but a path away from the low paying jobs, which are the majority of the new jobs produced, during and since the recession.

The report says states are suffering from deficits of good jobs as unemployment combines with population growth to create ever-deeper needs for quick job creation. Every month without job creation is another month that residents fall further behind, as states like Massachusetts (with a deficit of more than 167,000 jobs since December 2007), California (with a jobs shortage of more than 1.8 million), Washington (with a shortfall of nearly 302,000 jobs) and Florida (with a deficit of 986,000 jobs) are all too aware. The U.S. Conference of Mayors also warns that many cities may not return to full employment until well into the latter half of the decade.

“Even as they look for federal support, cities and states are doing everything they can to create jobs and reverse a downturn that is still clawing away at communities,” said Christine Owens, executive director of the National Employment Law Project. “Federal funding is essential to help states withstand the continuing drains on their budgets, leading to cuts in services and jobs. But there are also innovative steps local governments can and are taking to combat stagnant wages and tentative hiring, while creating good jobs with lasting positive impacts.”

The NELP report offers a menu of options for putting local residents to work in quality jobs that will create lasting value to their communities.
 In Michigan, improved public transit freed up nearly $350 million in discretionary spending for public transit riders in 2008, yielding $1.46 of economic value for each dollar spent on transit services.
 In California, clean energy standards require as much as 33 percent of energy to come from renewable sources within the next decade, which reduces energy costs and drives job creation in alternative energy industries. Twenty-nine states and the District of Columbia currently have similar policies, known as Renewable Portfolio Standards (RPS).
 In 2011, New York became the first state to incorporate living wages into its state Medicaid home care program as part of a comprehensive initiative to modernize the program and improve the jobs while controlling costs through new policies aimed at cracking down on questionable billing of the program by certain providers.

Meanwhile, the the jobs bill proposed by President Obama lost in the Senate yesterday after Democrats were not able to get 60 votes to beat a Republican filibuster. Parts of the proposal are more likely to pass in the Senate, with the House more likely to come up with their own version. Still unresolved are unemployment benefits which are set to run out the end of this year.

Full text of NELP report, click here. 10/12/2011

RISING RATIO OF APPLICANTS FOR FEWER JOBS

More from the Emeritus Newsroom- Economic Policy Institute employment analyst Heidi Shierholz says the number of jobs available for those unemployed has remained basically the same for the last three years.

According to Shierholz, the total number of unemployed workers in August was 14.0 million. The ratio of unemployed workers to job openings was thus 4.6-to-1 in August, a deterioration from the July ratio of 4.3-to-1. By comparison, in December 2000 the job seeker’s ratio was 1.1-to-1. Furthermore, the highest this ratio ever got in the early 2000s downturn was 2.8-to-1. August marks three years straight that the job seeker’s ratio has been at or above 3-to-1. Put another way: we’ve exceeded the highest level reached in the early 2000s recession for the last three years straight. And we’ve been substantially above 4-to-1 for the last two years and eight months.  A job seeker’s ratio of more than 4-to-1 means that for more than three out of four unemployed workers, there simply are no jobs. Two years and eight months—139 weeks—of a job seeker’s ratio above 4-to-1 is why the current extended unemployment insurance benefits, which last a maximum of 99 weeks, remain crucial.

Must read full text of Shierholz report, click here. 10/12/2011

U-S ECONOMY NETS 1.2 MILLION MORE JOBS SINCE AUGUST 2010

More from the Emeritus Newsroom- A comparison of August 2010 to August 2011 shows a NET gain of 1.2 million jobs in the U-S over a twelve month period.

Results from the Bureau of Labor Statistics indicate the economy continues a slow recovery, though not fast enough to improve the nation's unemployment rate. BLS reports there were 3.1 million job openings on the last business day of August, the U.S. Bureau of Labor Statistics reported today. The hires rate (3.1 percent) and separations rate (3.0 percent) were essentially unchanged over the month. The job openings rate has trended upward slowly since the end of the recession in June 2009 (as determined by the National Bureau of Economic Research).

Large numbers of hires and separations occur every month. Over the 12months ending in August 2011, hires totaled 47.9 million and separations totaled 46.7 million, yielding a net employment gain of 1.2 million based on not seasonally adjusted data. These figures include workers who may have been hired and separated more than once during the year.

Full text Bureau of Labor Statistics report, click here. 10/12/2011

10,000 WALL STREET JOBS MAY BE LOST BY END OF 2012

More from the Emeritus Newsroom- A projection released today by New York State Controller Thomas DiNapoli expects thousands of jobs to be lost between now and the end of 2012, due to profit losses. According to a statement from DiNapoli,

  • The member firms of the New York Stock Exchange earned $9.3 billion in the first quarter of 2011 (almost half of the City’s $20 billion target for the entire year), but profits declined sharply in the second quarter. The Office of the State Comptroller forecasts that profits are unlikely to reach $18 billion for all of 2011, which is one-third less than in 2010.
  • After adding 9,900 jobs between January 2010 and April 2011, the securities industry has lost 4,100 jobs through August 2011. Job losses are likely to continue given declines in profitability and recent layoff announcements. OSC estimates that the securities industry could lose nearly 10,000 additional jobs by the end of 2012, which would bring total industry job losses to 32,000 since January 2008.
  • Cash bonuses are likely to be smaller in 2011, the second year in a row in which they have declined.
  • The average salary in the securities industry in 2010 grew by 16.1 percent to $361,330, 5.5 times higher than the average salary in the private sector of $66,120. The disparity between average salaries in the securities industry and the rest of the private sector narrowed in 2008 and 2009, but widened in 2010.
  • In 2010, the securities industry accounted for 23.5 percent of all wages paid in the private sector despite accounting for only 5.3 percent of all private sector jobs.
  • The State Comptroller’s Office estimates that each job gained (or lost) in the securities industry leads to the creation (or loss) of almost two additional jobs in other industries in the New York City and another job elsewhere in New York State.

“Excessive risk-taking on Wall Street was a major factor leading to the financial crisis and the recession,” DiNapoli said. “Regulatory changes that reduce risk and focus attention on long-term profitability rather than short-term gains will enhance stability. Despite the weaknesses we are seeing, the securities industry remains profitable and is a key component of the economies of New York City and New York State.”

Full text of statement to DiNapoli, click here. 10/11/2011

NEW "MADE IN AMERICA" TV SERIES STARTS

More in this article from American Rights at Work, click here- 10/11/2011

NATION'S UNEMPLOYMENT RATE STAYS AT 9.1%

More from the Emeritus Newsroom- The Labor Department reports nonfarm payroll employment edged up by 103,000 in September, and the unemployment rate held at 9.1 percent, the U.S. Bureau of Labor Statistics reported today. The increase in employment partially reflected the return to payrolls of about 45,000 telecommunications workers who had been on strike in August. In September, job gains occurred in professional and business services, health care, and construction. Government employment continued to trend down.

The number of unemployed persons, at 14.0 million, was essentially unchanged in September, and the unemployment rate was 9.1 percent. Since April, the rate has held in a narrow range from 9.0 to 9.2 percent. Among the major worker groups, the unemployment rates for adult men (8.8 percent),
adult women (8.1 percent), teenagers (24.6 percent), whites (8.0 percent), blacks
(16.0 percent), and Hispanics (11.3 percent) showed little or no change in September.
The jobless rate for Asians was 7.8 percent, not seasonally adjusted.

The number of long-term unemployed (those jobless for 27 weeks and over) was 6.2
million in September. These individuals accounted for 44.6 percent of the unemployed.

Both the labor force and employment increased in September. However, the civilian
labor force participation rate, at 64.2 percent, and the employment-population ratio,
at 58.3 percent, were little changed.

The number of persons employed part time for economic reasons (sometimes referred to
as involuntary part-time workers) rose to 9.3 million in September. These individuals
were working part time because their hours had been cut back or because they were
unable to find a full-time job.

In September, about 2.5 million persons were marginally attached to the labor force,
about the same as a year earlier. (The data are not seasonally adjusted.) These
individuals were not in the labor force, wanted and were available for work, and had
looked for a job sometime in the prior 12 months. They were not counted as unemployed
because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 1.0 million discouraged workers in September,
down by 172,000 from a year earlier. (The data are not seasonally adjusted.)
Discouraged workers are persons not currently looking for work because they believe
no jobs are available for them. The remaining 1.5 million persons marginally attached
to the labor force in September had not searched for work in the 4 weeks preceding the
survey for reasons such as school attendance or family responsibilities.

Full text of Department of Labor statement, click here. 10/07/2011

OBAMA SAYS JOBS BILL NEEDED NOW TO STABILIZE NATIONAL AND WORLD ECONOMY

More in this YouTube video from Voice of America, click here - 10/06/2011

FORD PLANS 12,000 MORE U-S JOBS / $6.2 BILLION INVESTMENT IN AMERICAN PRODUCTION

More from the Emeritus Newsroom- Ford has announced it has reached agreement with the United Auto Workers on a new contract that boosts pay, provides $5,000- $6,000 in ratification bonuses, if the rank and file approves, and boosts by 12,000, the number of jobs the company is planning to create or move from international plants to the U-S.

In a statement released by Ford today, the company says the tentative four year agreement affects approximately 41,000 UAW-represented employees in the United States. It calls for the 12,000 hourly jobs to be added in Ford's U.S. manufacturing facilities through the term of the contract in 2015.

The new jobs commitment includes additional IN-sourcing from Mexico, China and Japan, and is nearly double the company's previous commitment to add jobs in the U.S..

The agreement includes $16 billion in U.S. investments -- including $6.2 billion for Ford plants in the U.S. -- all to design, engineer and produce more new and upgraded vehicles and components by 2015.

"We are pleased that, by working together with the UAW, we reached a deal that is fair to our employees and that improves Ford's competitiveness in the U.S.," said John Fleming, Ford's executive vice president of Global Manufacturing and Labor Affairs. "This agreement allows us to make even more progress on our One Ford plan and our focus on the great products, stronger business and better world that will deliver continued profitable growth for all."

The UAW will share details of the agreement with its local leaders and members in the coming days as part of the ratification process. Ford will discuss more specifics once the agreement becomes final.

News of the announcement left the UAW home page so flooded with hits that it would not load on most browsers this afternoon.

Ford announcement from PR Newswire , click here. 10/04/2011

BERNANKE WARNS MORE SLUGGISH JOB GROWTH AHEAD / SUGGESTS MORE STIMULUS MIGHT BE NEEDED IN VIEW OF WORLD ECONOMIC ISSUES

More from the Emeritus Newsroom- As Greece and the European Union deal with critical fiscal and monetary issues, U-S Federal Reserve Chairman Ben Bernanke has come out with his strongest words yet, that the U-S should consider additional stimulus measures. While Bernanke admits the country's debt and long term fiscal picture must change, in stronger terms, he made it clear congress and President Obama must do more to stabilize our economy.

During a speech today before the Joint Economic Committee at the Capitol, Bernanke offered some encouragement that, "...the functioning of financial markets and the banking system in the United States has improved significantly. Manufacturing production in the United States has risen nearly 15 percent since its trough, driven substantially by growth in exports; indeed, the U.S. trade deficit has been notably lower recently than it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services. Business investment in equipment and software has continued to expand, and productivity gains in some industries have been impressive. Nevertheless, it is clear that, overall, the recovery from the crisis has been much less robust than we had hoped. Recent revisions of government economic data show the recession as having been even deeper, and the recovery weaker, than previously estimated; indeed, by the second quarter of this year--the latest quarter for which official estimates are available--aggregate output in the United States still had not returned to the level that it had attained before the crisis. Slow economic growth has in turn led to slow rates of increase in jobs and household incomes".

Bernanke pointed to more recent international factors affecting the U-S economy, "... political unrest in the Middle East and North Africa, strong growth in emerging market economies, and other developments contributed to significant increases in the prices of oil and other commodities, which dampened consumer purchasing power and spending; and the disaster in Japan disrupted global supply chains and production, particularly in the automobile industry".

Overall, Bernanke said, "Probably the most significant factor depressing consumer confidence, however, has been the poor performance of the job market. Over the summer, private payrolls rose by only about 100,000 jobs per month on average--half of the rate posted earlier in the year. Meanwhile, state and local governments have continued to shed jobs, as they have been doing for more than two years. With these weak gains in employment, the unemployment rate has held close to 9 percent since early this year. Moreover, recent indicators, including new claims for unemployment insurance and surveys of hiring plans, point to the likelihood of more sluggish job growth in the period ahead. Other sectors of the economy are also contributing to the slower-than-expected rate of expansion. The housing sector has been a significant driver of recovery from most recessions in the United States since World War II. This time, however, a number of factors--including the overhang of distressed and foreclosed properties, tight credit conditions for builders and potential home buyers, and the large number of "underwater" mortgages (on which homeowners owe more than their homes are worth)--have left the rate of new home construction at only about one-third of its average level in recent decades".

Full text of Bernanke Speech, click here. 10/04/2011

EEOC ACTIONS IN THREE CASES / CHARGES INCLUDE DISCRIMINATION AGAINST OLDER WORKERS, HISPANICS AND WHITE EMPLOYEES

More from the Emeritus Newsroom- In an unusual case involving reverse discrimination, The EEOC has filed a lawsuit against a suburban Denver Hampton Inn franchisee for holding stereotypical views of caucasian and non hispanic employees.

According to the EEOC filing, Century Shree Corporation and Century Rama, Inc. illegally terminated employees beginning in August onwards because of their race.

The agency says employees, including Wendy Buckley, Ashlee Flannery, and Dewetta McKnight, were discharged from the Hampton Inn at Craig, Colorado, because the owners of the companies believe that White or non-Hispanic workers were indolent (lazy or reluctant to work hard). Employers are prohibited from discharging employees because of their race or national origin, including if the action is informed by negative myths and stereotypes, as this action violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit, Case No. 11-cv-2558-REB-CBS, in the U.S. District Court for the District of Colorado after the agency first attempted to reach a pre-litigation settlement with the companies.

“An employer cannot discharge or refuse to hire an individual based on derogatory beliefs about that person’s race or national origin,” said Mary Jo O’Neill, regional attorney for the EEOC’s Phoenix District Office. “Employers cannot choose employees based on the color of their skin or their ancestry. This form of blatant discrimination clearly violates federal law.”

The Commission is pursuing back pay and compensatory damages on behalf of Buckley, Flannery, McKnight, and all other employees adversely affected by Century Shree Corp. and Century Rama, Inc.’s conduct. The EEOC is also prioritizing non-economic relief in the lawsuit, including seeking a permanent injunction against the employers that will prohibit them from discriminating in the future, and requiring the owners, managers, and supervisors of the two companies to undergo training on federal antidiscrimination laws.

Denver EEOC Field Director Nancy Sienko explained, “Non-economic relief is central to the Commission’s mission. The EEOC seeks to eradicate discrimination from the workplace so that individuals can find and maintain work based on their skills and performance and not on their race and national origin.”

ANOTHER CASE ANNOUNCED TODAY involves a lawsuit against Texas Roadhouse, a national, Kentucky-based restaurant chain, for allegedly engaging in a nationwide pattern or practice of age discrimination in hiring hourly, “front of the house” employees.The EEOC alleged that Texas Roadhouse has hired significantly few “front of the house” employees 40 or older in age. In addition, Texas Roadhouse allegedly instructed its managers to hire younger job applicants. For example, Texas Roadhouse emphasized youth when training managers about hiring employees for its restaurants. All of the images of employees in its training and employment manuals are of young people.

The Commission also alleged that Texas Roadhouse’s hiring officials have told older unsuccessful applicants across the nation that “there are younger people here who can grow with the company;” “you seem older to be applying for this job” and “do you think you would fit in?” Officials also said that the restaurant was “a younger set environment;” “we are looking for people on the younger side... but you have a lot of experience;” and “how do you feel about working with younger people?”

Age discrimination violates the Age Discrimination in Employment Act. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its conciliation process. The agency seeks monetary relief for all applicants denied employment because of their age, the adoption of strong policies and procedures to remedy and prevent age discrimination by Texas Roadhouse, training on discrimination for its managers and employees, and more.

“Restaurants may not refuse to consider older workers as applicants merely because of their age,” said Elizabeth Grossman, Regional Attorney for the New York District Office.

The third case involves an EEOC lawsuit filed against logistics company, DHL Global. The agency says Hispanic employees at DHL’s Dallas warehouse were constantly subjected to taunts and derogatory names such as “wetback”, “beaner,” “stupid Mexican” and “Puerto Rican b---h”. According to the EEOC, Hispanic workers, who included persons of Mexican, Salvadoran and Puerto Rican heritage, were often ridiculed by DHL personnel with demeaning slurs which included referring to the Salvadoran worker as a “salvatrucha,” a term referring to a gangster. Other workers were identified with derogatory stereotypes by being told they should be outside the facility “mowing the grass” or that their “homies” were on a television show about prison. The EEOC further asserts that harsh admonitions to bilingual employees about use of their Spanish language were motivated by prejudice, unnecessary and unrelated to the effective performance of the job duties. 

DHL Global officials ignored the complaints of employees even after the discriminatory conduct was reported to management. The suit also alleges that DHL retaliated against Troy Petty, a union steward, by terminating his employment after he reported the mistreatment of Hispanic employees to DHL officials on several occasions.

National origin discrimination in the workplace, including national origin harassment, and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.

Full test of Hampton Inn case press release, click here. Full text of Texas Roadhouse case press release, click here. Full text of DHL case press release, click here. 10/03/2011

WHISTLE BLOWERS PREVAIL IN DEPARTMENT OF LABOR CASES AGAINST EMPLOYERS

More from the Emeritus Newsroom- Bank of America and the CEO of Bond Laboratories have been cited by the U-S Department of Labor for violation of the Sarbanes-Oxley Whistle Blower Protection Act.

According to the DOL, Charlotte, N.C.-based Bank of America Corp. was found in violation of the whistle blower protection provisions of the Sarbanes-Oxley Act for improperly firing an employee. The bank has been ordered to reinstate and pay the employee approximately $930,000, which includes back wages, interest, compensatory damages and attorney fees. The findings follow an investigation by OSHA's San Francisco Regional Office, which was initiated after receiving a complaint from the Los Angeles-area employee.

"It's clear from our investigation that Bank of America used illegal retaliatory tactics against this employee," said OSHA Assistant Secretary Dr. David Michaels. "This employee showed great courage reporting potential fraud and standing up for the rights of other employees to do the same."

The employee originally worked for Countrywide Financial Corp., which merged with Bank of America in July 2008. The employee led internal investigations that revealed widespread and pervasive wire, mail and bank fraud involving Countrywide employees. The employee alleged that those who attempted to report fraud to Countrywide's Employee Relations Department suffered persistent retaliation. The employee was fired shortly after the merger.

"Whistle blowers play a vital role in ensuring the integrity of our financial system, as well as the safety of our food, air, water, workplaces and transportation systems," added Michaels. "This case highlights the importance of defending employees against retaliation when they try to protect the public from the consequences of an employer's illegal activities."

Both the complainant and Bank of America can appeal the monetary damages to the Labor Department's Office of Administrative Law Judges within 30 days of receiving the findings.

OSHA enforces the whistle blower provisions of the Sarbanes-Oxley Act and 20 other statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, public transportation agency, railroad and maritime laws. Under these laws enacted by Congress, employers are prohibited from retaliating against employees who raise various protected concerns or provide protected information to the employer or to the government.

The DOL also found that Bond Laboratories Inc. and former CEO Scott Landow were in violation of the whistle blower protection provisions of the Sarbanes-Oxley Act for improperly firing an employee. The company and Landow have been ordered to re-hire the employee and pay approximately $500,000 in back wages, interest and compensatory damages. The findings follow an investigation by OSHA's San Francisco Regional Office, which was initiated after receiving a complaint from the employee.

Landow and Bond Laboratories, formerly based in Solana Beach, allegedly terminated the complainant, an officer, for objecting to the manipulation of sales figures that misrepresented the company's value to potential investors. OSHA determined that the complainant repeatedly objected to this practice between March and October 2008, and that the objections contributed to the decision to terminate the complainant.

"This corporate officer tried to do the right thing when asked to break the law," said Assistant Secretary of Labor for OSHA Dr. David Michaels. "It is essential that America's workers do not have to fear retaliation when reporting wrongdoing. The Labor Department will continue to protect whistle blowers from retaliation by holding corporations, and when appropriate, CEOs, accountable."

DOL press release on Bank of America case, click here. DOL press release on Bond Laboratories case, click here. 09/20/2011

 

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