The World of Labor - January 10, 2009



	THE WORLD OF LABOR — January 10, 2009 By Harry Kelber U.S. Lost 2.6 million jobs in 2008; 11 million now unemployed Americans lost 524,000 jobs in December, with a total of 2.6 million for the year, the worst annual job loss since 1945, according to the U.S. Bureau of Labor Statistics. The jobless rate rose to 7.2 percent, and the BLS reported that 11.1 million workers were unemployed, far more than economists had expected. The depressing impact of the recession showed up everywhere. Manufacturing, which accounts for 12 percent of the economy, shrank in December at the fastest pace in 28 years. Payrolls at construction sites dropped by 101,000 after previously decreasing by 85,000. Financial firms reduced payrolls by 14,000, after a 28,000 loss the previous month. Service industries, which include banks, insurance companies, restaurants and retailers eliminated 273,000 jobs after a decline of 402,000. President-Elect Barack Obama has urged Congress to act quickly on his proposed stimulus package, stating that if no action is taken immediately, the “recession may linger for years.” But some Senators, who don’t agree with aspects of Obama’s budget proposals, are insisting on fuller discussion and debate, so that passage of the legislation would be held up until mid- or late February. Venezuelan Law to Protect Workers from Economic Crisis The Venezuelan government said on Jan. 6 that under an extended labor protection decree, the nation’s workers in both state-run and private sectors will be spared the mass layoffs that workers in other countries are enduring because of the global economic crisis. The decree, to be in force until December 31, 2009, states Venezuelan workers cannot be fired, downgraded or transferred without a fair cause. The decree excludes executives, temporary workers and those whose basic salary is three times the minimum wage of $371.60. Labor and Social Security Minister Roberto Hernandez recalled that the Venezuelan government withdrew its reserves from U.S. banks, preventing a financial disaster. With over $40 billions of hard currency reserves, the government claims it can face the global crisis, even if oil prices drop to their lowest level ever. Chilean Unions Threaten Boycott if Wal-Mart Violates Labor Law Unions representing employees of Distribucion y Service, Chile’s biggest grocer, said they will take action if Wal-Mart fails to respect current labor conditions after it buys the company. “We know about Wal-Mart’s anti-union conduct,” said Christian Cuevas, a negotiator for Chile’s central trade union organization. “If they try to impose policies they have in other countries, we have to apply a boycott to this company.” Cuevas accompanied leaders of unions representing 5,000 employees of D&S’s Linder supermarkets at a media conference in Santiago. Wal-Mart, the world’s biggest retailer, last week began to offer to buy D&S in a deal valued at $2.66 billion in what would be the biggest acquisition in Latin America. Wal-Mart has been expanding its presence in Latin America in recent years. It owns 51 percent of CARHCO, which has 375 stores in El Salvador, Honduras, Nicaragua and Costa Rica, with about 23,000 employees and sales of $2.2 billion in 2005. Hong Kong Airport’s Ground Crew Bans Strikes After Pay Deal Ground staff at Hong Kong’s International Airport on Jan. 6 ruled out further strikes after their employer consented to drop a proposal to scrap their annual bonus. After a 15-hour negotiating session, staff representatives at Hong Kong Airport Services and the airline agreed that each full-time employee would receive a bonus equal to 18 days’ pay. On top of that, the company will give a one-time additional payment of 1,000 Hong Kong dollars ($130) to all staff. “Although we cannot say we are 100 percent happy about the company’s final decision, their offer is acceptable,” said Ng Wee-wee, spokeswoman for the 3,000 employees, adding there would be no more strikes. The company is the largest of the three main services providers at the airport. The negotiations took place after more than 500 employees went on strike on Dec. 27 to protest the company’s plan to drop the annual performance-based bonus. The three-hour stoppage resulted in major departures and baggage claims for more than 80 flights. Toyota Asks for Pay Cuts During Halt in Production Japan’s biggest automaker, Toyota, is asking its workers to accept lower pay while it extends a halt in domestic production to cope with plummeting demand for new cars. “The management and the union are in negotiations on the size of the wage cut,” said Toyota spokesman Keisuke Kirimoto. The company needs to pay at least 60 percent of the average full-time salary, as provided in the labor law. Toyota, which expects its first operating loss in 71 years, is cutting production as its sales last month plunged 37 percent in the U.S. and 18 percent in Japan. The company announced it will suspend production at 12 domestic factories for 11 days in February and March as the global recession weakens car demand. In contrast with the Big Three auto companies, Toyota has always taken a long-term strategic view of their employees. Toyota understands that laying off thousands of employees for slowdowns or retooling is counterproductive, It wisely uses the time to train its workers for the skills that will be needed for new products. The workers appreciate Toyota’s “no layoff” policy and it strengthens their loyalty to the company. Ban on French TV Advertising Sparks Wave of Strikes The partial suppression of advertising on five French government-owned television stations, which took effect Jan. 5, has mobilized the opposition and infuriated television journalists. Journalists at France 3, the national network of regional channels, went on strike to protest against the reform, followed a day later by their colleagues at France 2, the main public-owned national channel. From now until November 2011, advertising is banned from public television from 8 pm to 6 am. Daytime advertising will continue until 2011. “They are getting rid of ads for parents at night and keeping it for kids in the morning,” commented the newspaper Libération. Some 40 percent of French people eat dinner while watching the 8 pm news, a poll shows. The government will reimburse some 450 million euros in lost advertising revenue to the public channels by levying a 1.5 percent tax on the advertising earnings of private channels, and a small tax on mobile phone and Internet operators, An opinion poll published by Le Parisian on Dec. 14 showed 70 percent of the French public approve of the advertising ban. Check our web site: http://www.laboreducator.org

THE WORLD OF LABOR — January 10, 2009

By Harry Kelber

U.S. Lost 2.6 million jobs in 2008; 11 million now unemployed

Americans lost 524,000 jobs in December, with a total of 2.6 million for the year, the worst annual job loss since 1945, according to the U.S. Bureau of Labor Statistics. The jobless rate rose to 7.2 percent, and the BLS reported that 11.1 million workers were unemployed, far more than economists had expected.

The depressing impact of the recession showed up everywhere. Manufacturing, which accounts for 12 percent of the economy, shrank in December at the fastest pace in 28 years. Payrolls at construction sites dropped by 101,000 after previously decreasing by 85,000. Financial firms reduced payrolls by 14,000, after a 28,000 loss the previous month. Service industries, which include banks, insurance companies, restaurants and retailers eliminated 273,000 jobs after a decline of 402,000.

President-Elect Barack Obama has urged Congress to act quickly on his proposed stimulus package, stating that if no action is taken immediately, the “recession may linger for years.” But some Senators, who don’t agree with aspects of Obama’s budget proposals, are insisting on fuller discussion and debate, so that passage of the legislation would be held up until mid- or late February.

Venezuelan Law to Protect Workers from Economic Crisis

The Venezuelan government said on Jan. 6 that under an extended labor protection decree, the nation’s workers in both state-run and private sectors will be spared the mass layoffs that workers in other countries are enduring because of the global economic crisis.

The decree, to be in force until December 31, 2009, states Venezuelan workers cannot be fired, downgraded or transferred without a fair cause. The decree excludes executives, temporary workers and those whose basic salary is three times the minimum wage of $371.60.

Labor and Social Security Minister Roberto Hernandez recalled that the Venezuelan government withdrew its reserves from U.S. banks, preventing a financial disaster. With over $40 billions of hard currency reserves, the government claims it can face the global crisis, even if oil prices drop to their lowest level ever.

Chilean Unions Threaten Boycott if Wal-Mart Violates Labor Law

Unions representing employees of Distribucion y Service, Chile’s biggest grocer, said they will take action if Wal-Mart fails to respect current labor conditions after it buys the company. “We know about Wal-Mart’s anti-union conduct,” said Christian Cuevas, a negotiator for Chile’s central trade union organization. “If they try to impose policies they have in other countries, we have to apply a boycott to this company.”

Cuevas accompanied leaders of unions representing 5,000 employees of D&S’s Linder supermarkets at a media conference in Santiago. Wal-Mart, the world’s biggest retailer, last week began to offer to buy D&S in a deal valued at $2.66 billion in what would be the biggest acquisition in Latin America.

Wal-Mart has been expanding its presence in Latin America in recent years. It owns 51 percent of CARHCO, which has 375 stores in El Salvador, Honduras, Nicaragua and Costa Rica, with about 23,000 employees and sales of $2.2 billion in 2005.

Hong Kong Airport’s Ground Crew Bans Strikes After Pay Deal

Ground staff at Hong Kong’s International Airport on Jan. 6 ruled out further strikes after their employer consented to drop a proposal to scrap their annual bonus. After a 15-hour negotiating session, staff representatives at Hong Kong Airport Services and the airline agreed that each full-time employee would receive a bonus equal to 18 days’ pay. On top of that, the company will give a one-time additional payment of 1,000 Hong Kong dollars ($130) to all staff.

“Although we cannot say we are 100 percent happy about the company’s final decision, their offer is acceptable,” said Ng Wee-wee, spokeswoman for the 3,000 employees, adding there would be no more strikes. The company is the largest of the three main services providers at the airport.

The negotiations took place after more than 500 employees went on strike on Dec. 27 to protest the company’s plan to drop the annual performance-based bonus. The three-hour stoppage resulted in major departures and baggage claims for more than 80 flights.

Toyota Asks for Pay Cuts During Halt in Production

Japan’s biggest automaker, Toyota, is asking its workers to accept lower pay while it extends a halt in domestic production to cope with plummeting demand for new cars. “The management and the union are in negotiations on the size of the wage cut,” said Toyota spokesman Keisuke Kirimoto. The company needs to pay at least 60 percent of the average full-time salary, as provided in the labor law.

Toyota, which expects its first operating loss in 71 years, is cutting production as its sales last month plunged 37 percent in the U.S. and 18 percent in Japan. The company announced it will suspend production at 12 domestic factories for 11 days in February and March as the global recession weakens car demand.

In contrast with the Big Three auto companies, Toyota has always taken a long-term strategic view of their employees. Toyota understands that laying off thousands of employees for slowdowns or retooling is counterproductive, It wisely uses the time to train its workers for the skills that will be needed for new products. The workers appreciate Toyota’s “no layoff” policy and it strengthens their loyalty to the company.

Ban on French TV Advertising Sparks Wave of Strikes

The partial suppression of advertising on five French government-owned television stations, which took effect Jan. 5, has mobilized the opposition and infuriated television journalists. Journalists at France 3, the national network of regional channels, went on strike to protest against the reform, followed a day later by their colleagues at France 2, the main public-owned national channel.

From now until November 2011, advertising is banned from public television from 8 pm to 6 am. Daytime advertising will continue until 2011. “They are getting rid of ads for parents at night and keeping it for kids in the morning,” commented the newspaper Libération. Some 40 percent of French people eat dinner while watching the 8 pm news, a poll shows.

The government will reimburse some 450 million euros in lost advertising revenue to the public channels by levying a 1.5 percent tax on the advertising earnings of private channels, and a small tax on mobile phone and Internet operators, An opinion poll published by Le Parisian on Dec. 14 showed 70 percent of the French public approve of the advertising ban.

Check our web site: http://www.laboreducator.org