Continue reading Walmart Finally Coming to Chicago?

Walmart Finally Coming to Chicago? originally appeared on BloggingStocks on Wed, 23 Jun 2010 09:30:00 EST. Please see our terms for use of feeds.

Wal-Mart Stores, Inc. (WMT) will be paying $86 million as the result of a class-action lawsuit in regards to back wages owed to California employees who left the company only to see built-up benefits apparently vaporize into thin air.

The amount is a small one for the retailing behemoth, and the retailer did not admit to not paying those back wages to some 232,000 former employees. The case, filed in 2006, claimed that back wages were either delayed beyond the amount allowed by state law or weren't provided at all to these former employees. The company had already settled another lawsuit in 2008 over similar issues for a total of $640 million.

Continue reading Wal-Mart Agrees to $86 Million Settlement with Former Employees

Wal-Mart Agrees to $86 Million Settlement with Former Employees originally appeared on BloggingStocks on Thu, 13 May 2010 17:00:00 EST. Please see our terms for use of feeds.

Speaking at Bloomberg Washington Summit Friday, Steven Rattner, the former head of the government's auto task force, wasn't exactly in the mood for pulling punches.

Referring to his time overseeing the government involvement in the auto industry, he said that "They were some of the worst-run companies I've ever seen in my life," and said there was plenty of blame to go around, including unions and the companies' executives.

Continue reading Former auto task force chief calls GM one of 'worst-run companies' ever

Former auto task force chief calls GM one of 'worst-run companies' ever originally appeared on BloggingStocks on Sat, 14 Nov 2009 12:10:00 EST. Please see our terms for use of feeds.

This winter, a bit more of New York is headed to Florida. Layoffs for 2010 have already been announced for the New York Times Company(NYT). The New York Times News Service will lose 25 editorial positions next year and shift the service's editing to one of the parent company's Florida newspapers. At present, the news service has 30 editorial jobs. Some of the layoffs will occur in February, and the others will happen in May.

These layoffs are not included in the planned slashing of 100 jobs in the flagship newspaper's newsroom -- a workforce reduction of 8% that should take hold by the end of the year. The NY Times is also ceasing pension contributions for nonunion employees.

Continue reading NYT News Service migrates after cut

NYT News Service migrates after cut originally appeared on BloggingStocks on Fri, 13 Nov 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading General Motors' sale plan approved -- is it worth it?

General Motors' sale plan approved -- is it worth it? originally appeared on BloggingStocks on Mon, 06 Jul 2009 09:50:00 EST. Please see our terms for use of feeds.

Continue reading Will labor costs kill the Chrysler-Fiat partnership?

Will labor costs kill the Chrysler-Fiat partnership? originally appeared on BloggingStocks on Wed, 15 Apr 2009 08:40:00 EST. Please see our terms for use of feeds.

"We knew someone was going to have to take the proverbial `bullet,' and it would have made it a lot easier to accept that had the CEOs of the banks also been required to give up their jobs," said Jim Graham, president of a union local in Lordstown, Ohio, where GM produces the Cobalt and Pontiac G5 fuel-efficient cars.

The comparison isn't entirely unreasonable: Ken Lewis and Vikram Pandit should have been dumped out on the street too, and it's a testimony to both appallingly bad corporate governance and poor oversight by the federal government that either of them currently has a job doing anything other than dogwalking.

But why defend Wagoner? By defending Wagoner's "leadership", people like Mr. Graham are essentially admitting that GM was essentially destined to fail because of overseas competition and its uncompetitive labor costs. If they want to deflect blame from themselves, they should be embracing the Richard Wagoner as The Man Who Ruined General Motors script. Otherwise, there's nowhere to point the finger but inward.

Unions leap to Wagoner's defense: Why? originally appeared on BloggingStocks on Tue, 31 Mar 2009 16:35:00 EST. Please see our terms for use of feeds.

Continue reading IBM offers laid-off workers a job -- overseas

IBM offers laid-off workers a job -- overseas originally appeared on BloggingStocks on Fri, 06 Feb 2009 12:10:00 EST. Please see our terms for use of feeds.

"Many big businesses aren't interested in getting the economy back on track by creating jobs. They've shown during the past 30 years that they're more interested in rewarding shareholders by cutting jobs."

The above quote comes from James P. Hoffa. These words, and other of Hoffa's rhetorical quips, appeared Friday, November 14, 2008, in The Detroit News. In his blog post there, Hoffa raises the banner of change, though perhaps not the typical organized labor banner that we're used to seeing. For the most part, Hoffa's words show me just how out of touch with the rank and file he really is. They also show how tightly tied to liberal fiscal politics he is.

On the one hand, James P. Hoffa claims that big businesses reward shareholders by cutting jobs. However, he neglects to acknowledge that in today's economic climate, cutting jobs is sometimes an essential ingredient in a business's very survival. He also seems to overlook the fact that those shareholders he's talking about are the exact same people he is talking to. I'd think that the president of the Teamsters would understand where pension funds and retirement portfolios tend to keep their money invested. The fiscal health of American retirement strategy is directly reflected in the fiscal health of Wall Street. You can tell J.P. Hoffa, that I said so.

Now, Hoffa is calling for the government to step in to save the auto makers. The implication here is that a government bailout will help to save auto industry jobs. What I believe he's really saying is that he'd like the reins of our auto industry handed over to the government. How convenient that would be for Hoffa and his organization. It would be especially convenient, when given how cozy Hoffa has become with the incoming administration.

Continue reading James P. Hoffa voices contempt for Wall Street

James P. Hoffa voices contempt for Wall Street originally appeared on BloggingStocks on Sat, 15 Nov 2008 16:40:00 EST. Please see our terms for use of feeds.

Doing business in China was supposed to be cheap. As the old saying goes "cheap gets expensive." The central government wants all of the foreign companies with local operations to have unions. All of those workers will be able to stage stop strikes if they like. They can ask for more cash. They can demand more benefits.

China does not say this, but getting U.S. companies to take on unions means that there is a good chance insurance and other services, which the government might pay for, can come out of the pockets of firms like Wal-Mart (NYSE: WMT) and McDonald's (NYSE: MCD).

According to The New York Times, "The union push is coming at a time when global corporations are already facing rising labor and commodity costs in China." Of course, the communist government probably forgot to mention the labor issue when corporations from the U.S. started moving into China to get cheap manufacturing and access to the rapidly increasing consumer base. A classic bait and switch move.

China is putting the screws to foreign companies and that may backfire. The temptation to move manufacturing to other countries like Vietnam and Mexico is likely to grow. China may see some of its best employers begin to leave.

The Chinese may want to see conditions improve for its workers who are employed by outside companies, but the push could put a lot of local workers out on the streets. Doing business in China isn't what it used to be.

Douglas A. McIntyre is an editor at 247wallst.com.

Pity U.S. companies in China, the union is moving in originally appeared on BloggingStocks on Fri, 12 Sep 2008 09:27:00 EST. Please see our terms for use of feeds.

Welcome to the 74th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.

This week, I'll be taking a look at whether Wal-Mart Stores Inc.'s (NYSE: WMT) attempts to fend off unions in its stores can continue succeeding. With Labor Day occurring in the U.S. tomorrow, it seemed appropriate to delve a little into Wal-Mart's potential labor union situation in its U.S. stores based on small gains being made in Canadian Wal-Mart locations.

North of the U.S. border, there has been a successful attempt to unionize Wal-Mart workers in the province of Quebec. Although the location is small, the United Food and Commercial Workers (UFCW) union sees it as an entry point into unionizing more Wal-Mart Supercenters in Canada.

With critics saying that the entry of Wal-Mart into many markets (if not all) has caused wages to go down and competition to deteriorate, the heat won't go down on Wal-Mart's fending off collective unions in its Canadian stores. And, when the heat gets hot enough, the UFCW and others will set their sights on U.S. locations -- the holy grail of organized labor potential if there ever was one. Wal-Mart isn't taking those threats lying down, and has even called meetings with U.S. managers to bring the upcoming Presidential election into the fray.

Continue reading The Wal-Mart Weekly: Taking a look at unionization within Wal-Mart

The Wal-Mart Weekly: Taking a look at unionization within Wal-Mart originally appeared on BloggingStocks on Sun, 31 Aug 2008 12:03:00 EST. Please see our terms for use of feeds.

Continue reading Boeing could lose $3.5 billion per month if machinists strike

Boeing could lose $3.5 billion per month if machinists strike originally appeared on BloggingStocks on Fri, 29 Aug 2008 09:25:00 EST. Please see our terms for use of feeds.

What do labor unions have against private equity? originally appeared on BloggingStocks on Tue, 26 Aug 2008 15:55:00 EST. Please see our terms for use of feeds.

Disney faces costumed employees in labor dispute originally appeared on BloggingStocks on Mon, 18 Aug 2008 06:30:00 EST. Please see our terms for use of feeds.

Unions strike back at Wal-Mart originally appeared on BloggingStocks on Thu, 14 Aug 2008 14:56:00 EST. Please see our terms for use of feeds.

Wal-Mart (NYSE: WMT) has never been union-friendly, but China has a lot of leverage with the big retailer. It has pushed a union into Wal-Mart, and now organized labor wants some changes.

According to the FT, all China Federation of Trade Unions has been able to get 8% wage increases in two regions for this year and next. Inflation in China is currently running just under 10%.

The news is not especially good for Wal-Mart, which prides itself on controlling employment costs and running lean operations. The settlement is almost certain to spread to all Wal-Mart locations in the big Asian country.

Wal-Mart is beginning to pay the price for wanting to be in China's huge and fast-growing economy. The central government controls unions, giving them extraordinary power.

Wal-Mart will not be not the last U.S. company doing business on the mainland to come up against wage issues. China will make sure its citizens are taken care of. It could hardly be called capitalism.

Douglas A. McIntyre is an editor at 247wallst.com.

Wal-Mart bows to union in China originally appeared on BloggingStocks on Fri, 25 Jul 2008 09:15:00 EST. Please see our terms for use of feeds.

Coming soon to investor email and mail boxes will be annual reports and proxy voting materials, complete with this year's shareholder resolutions. Hot topics this annual meeting season include the ever popular "say-on-pay." Shareholders are incensed that average or even sub-par executive performance and decision making is being handsomely rewarded with gigantic salaries and perks while they make due with crumbs. According to a recent article in CFO Magazine, 76 shareholder proposals dealing with executive compensation have made it onto the ballot.

Also on many ballots are shareholder resolutions dealing with socially responsible investing, particularly on matters revolving around the issue of global warming and/or climate change. So far, 56 shareholder resolutions have made it onto ballots. At least nine companies have taken steps to negate the need for such shareholder resolutions by rolling out policies addressing how the companies will cut back on greenhouses emissions and otherwise "go green."

As this is a presidential election year, there are at least 50 shareholder resolutions to force companies to disclose political contributions. These resolutions probably won't gain the necessary traction to force any action, but any resolution favoring greater corporate transparency is to shareholders' advantage.

New this year are numerous resolutions requesting senior management to disclose a company's exposure to subprime mortgage losses and secondary purchases in the mortgage market. This is a hot topic among investors right now, and many pension fund investors have taken hits. Look for union members to pressure their pension funds manangers on this one.

How will you vote on these subjects?

It's shareholder resolution time -- what is your say on pay? originally appeared on BloggingStocks on Wed, 02 Apr 2008 16:59:00 EST. Please see our terms for use of feeds.

Performances of Dr. Seuss's How the Grinch Stole Christmas resumed today at 11 A.M. after a Manhattan judge ordered that the show must go on! The show is strictly a holiday affair, with performances set to end January 6. Producers cited a special contract between the show and Jujamcyn Theaters, and argued that the strike didn't effect their production.

But this is just a single victory for producers, who are still losing millions in revenue from the strike that centers on how many stagehands a show must hire. While the stagehands union is certainly not the blue collar, middle American union that most of us think of when we hear "organized labor," this is an interesting case. To some, the efforts by the union to require that producers hire more stagehands than they feel is necessary is indicative of how unions hinder business.

But to others, millionaire producers depriving stagehands of their jobs is Scrooge-like.

How a judge saved The Grinch originally appeared on BloggingStocks on Fri, 23 Nov 2007 15:20:00 EST. Please see our terms for use of feeds.

The approval of the UAW contract with Chrysler is going badly. Several local chapters of the UAW have voted it down. The workers at these plants are upset that the car company will continue to produce cars in Mexico and lacks concrete product plans for some of the manufacturing locations in the U.S.

If workers are going to give concessions on pay, they expect more from Chrysler in terms of future car-building in the U.S.

Chrysler wants to rescue the contract and avoid a strike. It appears to be willing to go to great lengths to do so.

Reuters writes that "Chrysler has guaranteed that it would keep some U.S. factories running well beyond the 2011 expiration of a proposed contract with the United Auto Workers union if the deal was approved." That is a big concession to get the union to vote in favor of the contract on the table.

While this maneuver may work for Chrysler, it will put Ford (NYSE: F) in a tough position. Ford may now be the weakest of the Big Three. Its unit sales have dropped about 20% each of the last two months. If the UAW thinks it can get Chrysler to buckle under on promises for the future of certain large plants, it is likely to ask Ford to make the same expensive pledges.

Being the last of the U.S. car companies to cut a deal with the UAW may cost Ford more than it wanted to give.

Douglas A. McIntyre is an editor at 247wallst.com.

Chrysler's secret deal to win UAW vote originally appeared on BloggingStocks on Tue, 23 Oct 2007 12:32:00 EST. Please see our terms for use of feeds.

The markets were in the green through much of the session and then the European Central banks indicated concerns about inflation and US markets fell.

The NYSE had volume of 3.9 billion shares with 1,251 shares advancing while 2,036 declined for a loss of 19.25 points to close at 10,245.25. On the NASDAQ, 2.5 billion shares traded, 902 advanced and 2,083 declined for a loss of 39.41 to 2,772.2.

Nordstrom, Inc. (NYSE: JWN) fell $3.64 (-7%) to $44.97 on weak sales. J.C. Penney Company, Inc. (NYSE: JCP) fell $4.73 (-7%) to $63.27 on lowered guidance. Ford Motor Company (NYSE: F) rose $.53 (6%) to $8.76 after Chrysler ended its strike and set sights on Ford. Amazon.com (NASDAQ: AMZN) fell $5.32 (-6%) to $89.34. Research in Motion Limited (NASDAQ: RIMM) fell $5.88 (-5%) to $111.

In options there were 7.2 million puts and 9.2 million calls traded for a put/call open interest ratio of 0.78. The options on the QQQQ were active as investors hedged general market positions. PowerShares QQQ Trust ETF (NASDAQ: QQQQ) saw heavy volume on the October 53 calls (QQQJA) with over 145,600 options trading. On the pit side the October 53 puts (QQQVA) traded over 148,200 contracts.

Other stock that had high volume of options contract include General Motors Corporation (NYSE: GM) saw heavy volume on the November 40 calls (GMKH) with over 39,700 contracts and on the October 40 calls (GMJH) moved 34,300 options. EMC Corporation (NYSE: EMC) saw heavy volume on the October 22.50 calls (EMCJX) with over 36,200 options trading as its subsidiary VMware, Inc. (NYSE:VMW) has taken off. Ford Motor Company (NYSE: F) saw heavy volume on the November 9 calls (FKL) with over 33,500 options trading ahead of a potential deal. Research In Motion Limited (NASDAQ: RIMM) saw heavy volume on the October 120 calls (RULJD) with over 29,800 options trading.

The best potential trade idea here may be the Ford Motor Company (NYSE: F) calls. If Ford is the next stock to be get a deal with the union; the stock could rise. That could make the Ford calls a real deal.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

Thursday Market Rap: Ford, JWN, GM, JCP and RIMM originally appeared on BloggingStocks on Thu, 11 Oct 2007 18:25:00 EST. Please see our terms for use of feeds.