March 20 – AIG bonus fiasco continues – FedEx to chop 1,000 more jobs – Rio Tinto Alcan to can 1,100 – ThyssenKrupp to cut > 3,000 – Shut down begins and 1400 jobs ending at New Process Gear

Mike: Today is shaping up to be a quiet day on the economic report front, but layoff announcements are numerous and large this Friday.

Mike: A family emergency will prohibit me from adding any more posts until Sunday. There’s still plenty of news to digest that has occurred over the past week

 

Mike: The following story illustrates one of the reasons why so many are upset at the AIG bonuses. The union rejected a contract offer for further lowering of wages, which may or may not be a good idea (in this economy, I personally think it’s a bad idea, since you can demand higher wages when the economy improves in a couple years). These workers were being asked to rewrite a contract, so why can’t the financial destruction wizards at AIG rewrite their contracts? If they don’t want to rewrite their contracts, then they can take the same course as the union members at New Process Gear by saying no and moving on. I am constantly amazed that the financial destruction wizards feel that they need to be treated differently than other workers. With tens of thousands of Wall Street layoffs occurring over the past six months, there is certainly going to be a talent pool to choose from if those AIG wizards decide to pack their bags and move on because their bonuses were withheld

 

Union leaders spent last week explaining the agreement, which hinged on the plant’s ability to break even in operations by July, in the midst of a recession. If it did, workers would keep their wages of $20.16 per hour. If it came close to break-even, their wages would be cut to $16 per hour, and if the plant missed the mark altogether, the company would close it.

“It’s a terrible contract. I couldn’t vote for that,” said Mike Capriotti, 53, of Lyncourt, who has worked at the plant for 15 years. Capriotti was so intent on the vote that he waited at the union hall for almost three hours Tuesday evening to learn the result.

Rejecting the agreement sealed the fate of the plant’s 1,400 union and nonunion workers.

via Union workers reject contract offer; New Process Gear to wind down DeWitt operations – syracuse.com.

 

Mike: Crooks tend to keep a low profile. As you can see, there are plenty of holes in the AIG argument that the bonuses are obligated

* AIG’s initial arguments that the bonuses were contractually obligated didn’t wash with New York Attorney Bruce Blakeman, who said bonuses, by nature, are discretionary and not ironclad obligations. He said AIG should make public the terms of the contract and the names of those being employed, especially because the public is funding those bonuses.

AIG also is facing the wrath of state governments. New York Attorney General Andrew Cuomo has subpoenaed the company for documents related to the bonuses and actions in Connecticut.

via AIG bonus earners have large homes, now keep low profile.

 

Mike: And what may be the most disturbing aspect of this bonus fiasco is that so many people knew about the bonus package, but were clueless to the potential public outrage. This shows that those in government and in the financial kingdom are completely disconnected from the plight of the person on the street. They sit in their comfortable lairs and blissfully ignore those that they work for; the taxpayer.

 

 

Interviews with senior Federal Reserve and Treasury officials, as well as members of Congress, leave little doubt that the bonus program was a disaster hiding in plain sight. Mr. Geithner is not the only one who appears not to have understood the populist fury the bonuses would set off.

Career staff officials at the Treasury, Fed and Federal Reserve Bank of New York exchanged e-mail messages about the A.I.G. bonus program as early as late February, according to a person familiar with the matter. A.I.G. itself revealed the bonus plan in regulatory filings last September.

via Many in Government Knew Weeks Ago About A.I.G. Bonuses – NYTimes.com.

 

Mike: You know that your congressional representative is getting plenty of heat on an issue when they can move this fast to address an issue. We have to keepthe heat on this crowd of civil servants and make certain that they are working for the people and not just the large campaign contributors.

The second paragraph below is even more bizarre than the bonus issue. The same companies that have stolen billions of taxpayer dollars aren’t even paying their fair share of taxes! You would think that they would at least have the courtesy to pay their taxes with some of the billions they’ve been given, but then again, they feel as if they don’t need to follow the rules; only those silly people on the street below need to do that.

 

* Reporting from Washington — Struggling to keep ahead of public outrage, the House of Representatives on Thursday passed a bill to recoup the lion’s share of the $165 million in bonuses paid to executives of American International Group Inc.

But the infuriating news just kept coming. A prominent congressman said 13 financial firms that had received an injection of government money owed more than $220 million in unpaid taxes. And Citigroup Inc., which has received $45 billion in federal money, planned to spend $10 million for new offices for its top executives, Bloomberg News reported.

via House passes bill to tax AIG bonuses – Los Angeles Times.

 

 

Jerry Holbert - Mar 18

Jerry Holbert - Mar 18

 

 

* Larger layoff announcements and important economic reports:
US/Canada


International:
       

 

Microsoft/Google/IBM and other Rumors & News

 

* Microsoft Corp. (MSFT) Chief Executive Steve Ballmer said Thursday he expects less acquisition activity in the economic downturn since targets will be less likely to sell at depressed valuations.

General Economic News

 

* WASHINGTON (AP) — Unemployment rose in all but one of the 372 metropolitan areas tracked by the Labor Department at the start of 2009 and areas of California were among the hardest hit, according to government data released Thursday.

That means jobless rates rose in January in 99.7 percent of the cities compared with a year ago. By comparison, in January 2008, one month into the current recession, unemployment increased in only 234 metro areas, or 63 percent.

Waterloo-Cedar Falls, Iowa, where the unemployment rate was unchanged at 4.4 percent, was the only metro area that didn’t see an increase. All 49 metro areas with more than 1 million people saw their rates rise in the past year, the department said.

via The Associated Press: Unemployment rises in 99.7 percent of metro areas.

 

Municipal News

 

* The city of West Linn laid off one employee last week to offset declining revenues in the building department.

US and some Canada News

 

federal-express1* MEMPHIS — FedEx’s profits have nose-dived 75 percent from year-ago levels, prompting the company to slash 1,000 more jobs and cut $1 billion in expenses.

The Memphis-based express delivery giant on Thursday reported fiscal third-quarter earnings of 31 cents per share — significantly worse than the 48 cents per share analysts predicted.

via FedEx to cut 1,000 jobs, $1 billion in expenses | www.tennessean.com | The Tennessean.

 

riotinto* Rio Tinto Limited (RIO) said its aluminium production subsidiary Rio Tinto Alcan would slash around 1,100 jobs. The measure was one of a raft of cost-cutting programmes announced by the company as the mining giant struggles with the global economic downturn.

 

magna-international* The latest closing will cost 1,400 jobs at New Process and hundreds more in companies that depend on the plant.

“Today is a very difficult morning after, after what is certainly very big news and very difficult news, not only for our employees, but for the central New York community,” D’Angelo said.

via News 10 Now | 24 Hour Local News | TOP STORIES | Shut down begins for New Process Gear .

 

magna-international1* Union leaders spent last week explaining the agreement, which hinged on the plant’s ability to break even in operations by July, in the midst of a recession. If it did, workers would keep their wages of $20.16 per hour. If it came close to break-even, their wages would be cut to $16 per hour, and if the plant missed the mark altogether, the company would close it.

“It’s a terrible contract. I couldn’t vote for that,” said Mike Capriotti, 53, of Lyncourt, who has worked at the plant for 15 years. Capriotti was so intent on the vote that he waited at the union hall for almost three hours Tuesday evening to learn the result.

Rejecting the agreement sealed the fate of the plant’s 1,400 union and nonunion workers.

via Union workers reject contract offer; New Process Gear to wind down DeWitt operations – syracuse.com.

 

boe3* Boeing is set to issue 60-day layoff notices today to about 900 employees, about 700 of them in the Puget Sound region. About 650 of the total work in the Commercial Airplanes unit.

 

* SAN FRANCISCO—Chip gear vendor Lam Research Corp. will eliminate 375 jobs, or 10 percent of the company’s workforce, as a cost-cutting measure, the company said Thursday (March 19).

 

* Bassett Furniture says in a news release that it plans to cut 50 additional jobs this year, as part of a plan to help the company save between seven and eight million dollars.

via Bassett Furniture to cut 50 jobs | WSLS 10.

 

newspaper23* The Daily News will eliminate 45 positions and cut wages for others, Publisher Patrick Doyle announced in a letter to employees.

via Anchorage Daily News to cut 45 positions – Forbes.com.

 

newspaper24* The Commercial Appeal has begun a series of layoffs delayed from earlier this month.

 

* CLEVELAND — KeyCorp this week cut 120 technology jobs, 100 of them in Greater Cleveland.

via KeyCorp cut 120 technology jobs, 100 of them in Greater Cleveland. – Business – cleveland.com.

 

gavel17* Jenner & Block said Thursday it has eliminated 34 support staff in its Chicago and Washington offices.

via Jenner & Block cuts 34 staffers — chicagotribune.com.

 

gavel18* Katten Muchin Rosenman announced today that they have laid off a total of 23 lawyers and 46 staffers, but what’s more interesting are the steps the firm says it’s taking to avoid further layoffs: namely, cutting salaries by 20 percent for associates who did not bill within 200 hours of their billable hours target (2000) in 2008.

via BREAKING: Katten Announces Layoffs, Salary Cuts.

 

gavel19* Since October 2008, Manatt Phelps laid off a total of 12 attorneys, 3 paralegals and 32 administrative staff nationwide, the firm says in a written statement provided to Above the Law.

 

* BP Amoco has announced plans to lay off 52 employees at its Naperville location beginning May 11. Employees were notified as of March 12, while Naperville City Council members learned of the layoffs in a packet that was distributed this week.

via BP Amoco to lay off 52 at Naperville plant :: Naperville Sun :: Local News.

 

* Fifty-eight people will be laid off in Sacramento, and 142 will lose their jobs in Hayward. All will receive a severance package of two months’ pay and benefits, Bernheimer said.

 

* SASKATOON — Areva Resources Canada Inc. is laying off about 100 employees after the company decided it was not economical to move ahead with mining a specific deposit at its McClean Lake property.

via Areva laying off 100 employees .

 

* MANITOWOC – Koenig & Vits, operators of the aluminum rolling mill on Mirro Drive, will begin a permanent elimination of 23 salaried and 63 hourly production employees beginning in May and continuing through July.

via Koenig & Vits to conduct ‘mass layoff’ | htrnews.com | Manitowoc Herald Times Reporter.

 

* CEDAR RAPIDS — Changes in St. Luke’s Home Care and Women’s Health Spa will affect 43 positions and leave 120 home patients needing to find alternative care.

via Service changes affecting 43 jobs at St. Luke’s | GazetteOnline.com – Cedar Rapids, Iowa City.

 

* Rourke said he couldn’t discuss a specific number of layoffs but said “the reductions have been across the board in all our businesses,” including the Marysville and Port Huron plants.

via Mueller Brass layoffs leave workers reeling | thetimesherald.com | The Times Herald.

 

* The work force reduction affects approximately 40 production workers, and was prompted by a downturn in business for the plant that produces wiring harnesses and performs cable manufacturing and custom assembly operations.

via More layoffs for Kirby Risk | www.jconline.com | Journal and Courier.

 

casino1* A total of 77 workers lost their jobs as a result of eliminating the third shift on Sundays at the Golden Moon Casino, according to Warren Strain, communications director for Pearl River Resort.

via Resort layoffs total 77.

 

* Motorsports Authentics, a joint merchandising venture by the country’s two largest speedway owners, laid off 40 employees Wednesday, said Joe Mattes, the company’s new interim president.

via Motorsports Authentics cuts 40 | www.thatsracin.com.

 

* International Paper Co. will lay off 58 at its Mount Vernon container plant as it shifts from a four-shift, seven-day-a-week operation to a three-shift, five-day operation, it has announced.

via The Columbus Dispatch : International Paper to lay off 58 at Mount Vernon plant.

 

* The release said about 60 hourly and 11 salary employees will be impacted. At its peak, the plant had more than 200 employees.

via Commercial Vehicle Grp to close Wash. state plant: Associated Press Business News – MSN Money.

 

* TERRE HAUTE, Ind. (WTHI) – Direct Brands, formerly known as Columbia House, decided to consolidate their DVD and Music Club services to a plant in Pennsylvania, resulting in layoffs.

The closing means 147 more jobs will be lost in Terre Haute.

via Former Columbia House makes layoffs.

 

* ROTHSCHILD — Wausau Homes has eliminated 79 more jobs, and its sister company WH Transportation will cut 49 positions, the company confirmed Thursday.

via Wausau Homes trims jobs | wausaudailyherald.com | Wausau Daily Herald.

 

* Tri-Rivers is telling 15 employees their jobs will be cut in an effort to cut costs. Superintendent Chuck Speelman said on Thursday that 8 non-certified and 7 certified employees would be informed Friday that their job will be cut.

 

International News

 

thyssenkrupp* FRANKFURT (AFP) — ThyssenKrupp plans to shed more than 3,000 jobs, a press report said on Friday, the first time a German industrial group would slash permanent posts as a result of the country’s recession.

via AFP: ThyssenKrupp to cut 3,000 jobs.

 

thyssenkrupp1* German industrial conglomerate ThyssenKrupp (TKAG.DE) plans to cut more than 3,000 jobs or about 1.5 percent of its total staff amid a slump in demand, the Financial Times reported on Friday.

The cutbacks will affect the group’s steel and car parts unit as well as its shipyards, the newspaper cited people close to the situation as saying.

via ThyssenKrupp to cut more than 3,000 jobs: report | Reuters .

 

dell7* It has been reported this morning that Dell are to cut a further 230 jobs in Ireland representing 10% of its workforce.

 

* In an interim management statement published this morning, the Cambridge-based firm said that 20 redundancies had been made in the first four months of its financial year, which began on 1 November, on top of the 200 redundancies announced at the end of October. 

via Domino announces more redundancies as sales decline | Business | packagingnews.co.uk.

 

* Says plan will lead to net reduction of 91 jobs

via BRIEF-Rhodia sheds jobs to cut costs – Forbes.com.

 

* Finnish wiring maker PKC said in a statement Thursday it would launch a round of statutory cooperation procedure talks with the aim of closing a wiring harness factory in Kempele in Finland with the loss of up to 226 jobs.

via NewsRoom Finland.

 

gavel20* Mayer Brown has begun a second redundancy consultation which will lead to the loss of up to 55 jobs in London while associate pay will be frozen.

 

Hiring News

 

* The FBI announced a hiring blitz in January to fill more than 2,100 professional staff positions. The job postings run the gamut from scientists to accountants to auto mechanics. In addition, the bureau said it wants to hire 850 FBI agents.

What happened next caught many at the FBI by surprise. More than 270,000 people applied over about six weeks. The FBI said about 70,000 people seek positions in a normal year.

via FBI gets 270,000 applications for 3,000 jobs – CNN.com.

 

* Another Columbia Falls lumber mill plans to resume operations after a layoff.

Officials with F.H. Stoltze Land & Lumber Co. plan to restart its sawmill next Monday, after a seven-week shutdown.

via Business & Technology | Another Columbia Falls lumber mill to restart after layoff | Seattle Times Newspaper.

 

 

Mike: A  family emergency will prohibit me from adding any more posts until Sunday. There’s still plenty of news to digest that has occurred over the past week. …………….

 

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1 Response to “March 20 – AIG bonus fiasco continues – FedEx to chop 1,000 more jobs – Rio Tinto Alcan to can 1,100 – ThyssenKrupp to cut > 3,000 – Shut down begins and 1400 jobs ending at New Process Gear”


  1. 1 jeff August 1, 2011 at 6:12 pm

    Another 1509-2000 cuts coming to fedex in sept 2011


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