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McMillion & Hirtensteiner, LLP - Labor News

McMillion & Hirtensteiner, LLP's Labor News charts the latest developments in labor and legal issues with regular updates published as they are released to the media.

Friday, November 16, 2007

 

California Employment Report: Confidence Index Increases

LOS ANGELES, Nov. 16 /PRNewswire/ -- The California Employee Confidence Index increased 1.2 points to 58.6 in October, according to the latest Spherion(R) Employment Report. The recent survey of California workers, conducted by Harris Interactive(R) on behalf of Spherion Corporation, reveals that more workers are confident in their ability to find a new job and more workers are likely to look for a new job. Results from the California Employment Report:
-- Two-thirds of workers are positive about their job prospects, with 66
percent reporting that they are confident in their ability to find a
new job, an increase of ten percentage points from September.
-- Forty percent of workers are likely to look for a new job in the next
twelve months, a seven-percentage-point increase from the previous
month.
-- A quarter (25%) of employees believe that more jobs are available, a
decrease of four percentage points from September.
"With unemployment rates across the state at or near historic lows, employees are definitely in the drivers' seat when it comes to finding or changing jobs," explained Lauren Steel, territory vice president for Spherion. "The state's job market is showing continued strength. In our staffing and recruiting business, we've seen a recent pick up in manufacturing in Southern California, as well as an array of positions in accounting and finance, particularly in the San Francisco area. We are also seeing some of our clients ramping up their hiring for seasonal work, especially for retail and customer service positions." Link to full Report & Methodology:
http://spherion.mediaroom.com/pressroom/index.php?s=43&item=475
About Spherion
Spherion Corporation is a leading recruiting and staffing company that provides integrated solutions to meet the evolving needs of companies and job candidates. As an industry pioneer for 60 years, Spherion has screened and placed millions of individuals in temporary, temp-to-hire and full-time jobs. Positions range from administrative and light industrial to a host of professions that include accounting/finance, information technology, engineering, manufacturing, legal, human resources and sales/marketing.
With approximately 650 locations in the United States and Canada, Spherion delivers innovative workforce solutions that improve business performance. Spherion provides its services to more than 8,000 customers, from Fortune 500 companies to a wide range of small and mid-size organizations. Employing 375,000 people annually through its network, Spherion is one of North America's largest employers. To learn more, visit www.spherion.com. For up-to- date career tips and trends, visit Spherion's career blog, The Big Time(SM), at www.spherion.com/careerblog.

 

U.S. Department of Labor Announces Nearly $660,000 Grant for New Hampshire to Assist Dislocated Workers

Grant will assist workers affected by the closure of Wausau Paper Mill in Groveton
WASHINGTON, Nov. 16 /PRNewswire-USNewswire/ -- U.S. Secretary of Labor Elaine L. Chao today announced a $659,992 grant, with an initial release of $325,537, to assist approximately 250 workers affected by the closure of Wausau Paper Inc. in Groveton, N.H.
"This $660,000 grant is to help the workers affected by this closure find new jobs in growing industries," said Secretary Chao. "These workers will be able to take advantage of employment services focused on connecting them with new career opportunities."
In addition, Assistant Secretary of Labor for Employment and Training Emily Stover DeRocco onNov. 19 will join Senator John Sununu and state and local officials in Groveton for a roundtable discussion that addresses the impact of the Wausau Paper closure and the future of the area's economy.
"Besides providing immediate assistance to workers facing this closure, federal, state and local officials are identifying strategies to help rebuild and strengthen the region's economic future," said DeRocco. "Together, we can align and leverage the public and private resources available to foster an environment for job creation and new opportunities for Groveton workers."
On October 23, Wausau Paper issued a Worker Adjustment and Retraining Notification announcing that layoffs would begin December 31. The state soon will open a Worker Assistance Center in Groveton to provide employment and training services to affected workers.
National Emergency Grants are part of the Secretary of Labor's discretionary fund and are awarded based on a state's ability to meet specific guidelines. For more information on National Emergency Grants, please visit www.doleta.gov/NEG.
U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202-693-7828 or TTY 202-693-7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.
Source: U.S. Department of Labor
CONTACT: Jennifer Kaplan, +1-202-693-5052, or Terry Shawn,+1-202-693-4676, both for the U.S. Department of Labor
Web Site: http://www.doleta.gov/NEG

 

U.S. Labor Department Obtains $20 Million Settlement With Union Labor Life Over Retirement Plan Fees

U.S. Labor Department Obtains $20 Million Settlement With Union Labor Life Over Retirement Plan Fees
WASHINGTON, Nov. 16 /PRNewswire-USNewswire/ -- The U.S. Department of Labor today announced a settlement requiring Union Labor Life Insurance Co. (ULLICO) of Washington, D.C., to pay back nearly $16.7 million in fees and compensation to benefit plans that invested in Separate Account J (J for Jobs), a pooled separate account holding plan assets for the benefit of employee benefit plan investors. In addition, the insurer must pay $3.3 million to an escrow account to cover additional civil penalties and excise taxes resulting from alleged violations of federal employee benefits law.
"Self-dealing by pension fiduciaries at the expense of workers' retirement plans cannot be tolerated," said Secretary of Labor Elaine L. Chao. "This $20 million settlement is a loud and clear message to all plan fiduciaries that they will be held accountable when their actions are detrimental to workers' benefit plans."
The settlement, if approved by the court, successfully resolves a department investigation concluding that Union Labor Life had used its authority over the separate account to unilaterally set its own compensation in violation of the Employee Retirement Income Security Act (ERISA).
In addition to the monetary recovery, the settlement permanently bars Union Labor Life from retaining compensation from any source in connection with Separate Account J without advance disclosure of the compensation and approval by appropriate independent plan fiduciaries. The order broadly prohibits the insurer from exercising any unilateral discretionary authority over the compensation it receives as a fiduciary or service provider to ERISA-covered benefit plans.
The Labor Department filed the lawsuit simultaneously with the settlement, which is subject to court approval. The lawsuit alleges that Union Labor Life violated ERISA when it failed to properly disclose its compensation and receive approval from plan fiduciaries independent of Union Labor Life for funds taken directly from the investment account, as well as payments received from third-party borrowers, such as loan commitment fees, construction administration fees and lender inspection fees. The insurer allegedly kept, among other fees, millions of dollars from loan applicants who failed to go forward with loans even though the plans assumed virtually all the risk of funding those loans.
Separate Account J invests in secured mortgages on real estate development projects constructed with union labor. The sole investors are ERISA-covered plans.
The Labor Department's legal action resulted from a comprehensive investigation conducted by the Philadelphia Regional Office of the department's Employee Benefits Security Administration and the department's Office of the Solicitor. Chao v. ULLICO
Civil Action Number 1:07-cv-02089
U.S. Department of Labor releases are accessible on the Internet at www.dol.gov. The information in this news release will be made available in alternate format (large print, Braille, audio tape or disc) from the COAST office upon request. Please specify which news release when placing your request at 202-693-7828 or TTY 202-693-7755. The Labor Department is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit www.dol.gov/compliance.
Source: U.S. Department of Labor
CONTACT: Gloria Della, +1-202-693-8664 or Richard Manning,+1-202-693-4676, both of the U.S. Department of Labor
Web Site: www.dol.gov

 

Battle over Access to Fisher Island Beaches Escalates; Access to Florida Beaches on the Line

Battle over Access to Fisher Island Beaches Escalates; Access to Florida Beaches on the Line
Hundred-plus to Land on Fisher Island Saturday Morning, November 17th
View documentary about island at http://www.youtube.com/watch?v=HuW-lp4eHkI
MIAMI, Nov. 16 /PRNewswire-USNewswire/ -- In a letter to the Fisher Island Community Association today, SEIU gave Fisher Island until 5:00 p.m. tonight to allow access to the public slip at the Marina and to the public beaches and ferry terminal allowing access to those beaches, or face legal action. The letter states "If Fisher Island maintains its current position, an action for an injunction will be commenced to protect the right of the public to reasonable access to the island's beaches."
"Fisher Island's attempt to hinder public use of its beaches has statewide implications, undermining the State's public policy that "beaches below mean high water lines" --- are held by the State "in trust for all the people" (Article X, Section 11 of the Florida Constitution.) Significantly, Florida has spent substantial funds to purchase land to enable the public to access the State's beaches, with beach tourism contributing billions of dollars per year to the Florida economy."
More than a hundred community activists will land on Fisher Island beaches tomorrow to put a public face on Fisher Island's "separate, but equal" mentality regarding the workers who service the island and the public. "Because they are so isolated, Fisher Island residents think they can wall themselves off from the poverty they create," said SEIU 11 Political Director Hiram Ruiz, "We set out to make a point, that there should be only one Miami, not one Miami for the wealthy and another for the rest of us. Now, however, it has mushroomed into something much bigger: Can the very rich write their own laws, roll over public officials and bar Floridians and tourists from accessing our beautiful -- and public -- beaches?"
The exclusive, white beaches of Fisher Island --- long kept off limits to the public --- will be the destination of an innovative action by SEIU Local 11 to expose the layers of discrimination, unfair treatment and abuse directed at the workers who maintain the island's grounds, clean up after the wealthy residents, and keep the island safe.
The only way on to the island is by invite-only ferry, boat, or helicopter. The island promotes its exclusive reputation by refusing to allow members of the general public to ride the ferry to the island unless they have been personally invited. However, a stretch of the beach on Fisher Island is public. WHAT: Boat launch to take "private" Fisher Island beach public
WHO: More than a hundred community activists
WHEN: Saturday, November 17, 12:30 p.m.
First wave of boats will leave promptly at 1:00 p.m.
WHERE: Jimbo's on Virginia Key to Fisher Island
Directions to Jimbo's: Take the Rickenbacker Causeway to
Virginia Key.
Take the first left after the light at Mast Academy, and follow
the signs.
BACKGROUND:
Named the richest ZIP code in the nation by Forbes magazine and profiled this past June in The New York Times Magazine as "Fantasy Island," Fisher Island is known for its extravagance --- including bird-walkers, separate million-dollar condominiums for pets, lush surroundings, and imported sand.
Despite being the wealthiest ZIP code in the nation, the service workers who tend the island make as little as $8.60 an hour, and never know if they will be offered enough hours a week to pay their rent and other bills. Other cities with similar luxury condominiums that cater to the wealthiest Americans pay the workers who clean and maintain their buildings considerably higher wages. In San Francisco and New York City, housekeepers make more than $16 an hour and have fully paid health insurance and standardized hours.
While workers are struggling to form a union to combat low wages and uncertain work hours, they are also drawing attention to serious issues of discrimination the workers are subjected to on the island and the ferry that takes them to the island.
A recent New York Times Magazine piece wrote, "Indeed, what becomes obvious on the island is first apparent on the ferry: there are only two kinds of people boarding. Rich people, many in expensive cars, and servants, who board on foot and take their spots on benches for the seven-minute ride."
In a case that harkens back to the civil rights lawsuits of the 1950s that ended racial segregation, 19 workers filed a class action complaint against Fisher Island Holdings, Inc., Fisher Island Community Association Inc., Fisher Island Club Inc., and Fisher Island Community Association LLC with the Miami-Dade County Equal Opportunity Board charging that policies and practices in effect on the Fisher Island Ferry Service that operates between the exclusive island to the mainland segregates Haitian, Hispanic, and African American workers. The complaint questions policies on the island-owned ferry that the workers must take to get to the island.
The island is only accessible by ferry, excluding the few residents who arrive by helicopter or private yacht. Billed as a paradise for residents and guests, the island attracts some of the world's wealthiest people, such as Mel Brooks, Sharon Gless, Janis Wackenhut (the daughter of the founder of the Wackenhut Corp.), and former Kohlberg Kravis Roberts (KKR) executive Michael Tokarz.
The workers have repeatedly reached out to the Fisher Island corporations and Somerset --- the New York City-based private equity firm that has pledged $300 million to make the island "one of the most exclusive addresses in the world"--to commit to high quality jobs on the island and to end discrimination against the island's service workers.
Source: SEIU Local 11
CONTACT: Tanya Aquino, +1-321-960-3802, or Renee Asher, +1-202-255-4251,both of SEIU Local 11
Web Site: http://www.seiu11.org/ http://www.youtube.com/watch?v=HuW-lp4eHkI

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