DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Owners of Hungry Pets Can Now Turn to Pet Food Stampshttp://www.dailyfinance.com/2013/05/01/pet-food-stamps/http://www.dailyfinance.com/2013/05/01/pet-food-stamps/http://www.dailyfinance.com/2013/05/01/pet-food-stamps/#commentsFiled under: , ,

Pet food stamps
Alamy
As many unemployed Americans have found, putting food on the table without a regular paycheck can be a challenge, which is why so many of them have come to rely on food stamps.

But what about their pets? There is no federal program to help feed dogs, cats or other animals kept as household pets, but one enterprising entrepreneur has stepped in to fill the void by creating Pet Food Stamps, as The Wall Street Journal reports.

Started by Marc Okon in February, the program is available to people who are already on government assistance. Okon said he was inspired to start the program after a friend in his old New York City neighborhood fell on hard times.

"She told me she sometimes fed her cat before herself," the newspaper quotes Okon as saying.
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Regardless of the reasons -- job loss, home foreclosure or health problems -- the need is real. Though some 47 million Americans receive food stamps, the benefit cannot be used to purchase pet food, which frequently results in pet owners having to give up their cherished animals.

As Okon told the Journal, "Millions of pets are surrendered to shelters each year and euthanized because their owners can't afford to feed them."

Okon says his small nonprofit, which employs about a dozen people, has received more applications for aid than it can readily process. As CBS News reports, the organization has received more than to 160,000 applications from needy families across the country.

The program is a lifeline for pet owners such as Marissa Jenkins. The Salem, Ore.-resident considers her 6-year-old Dachshund, Olivia, a part of the family.

"She's a kid to us," says Jenkins, a new mother whose husband lost his job in December. Jenkins is grateful for the help she's received from Pet Food Stamps and told CBS News that once the couple is back on their feet, they will donate to the program to help other needy families feed their pets.

Gallery: 11 Easy and Great Ways to Save Money in 2013

1. Pay down high-interest credit cards first2. Correct your tax status3. Buy the stocks of dividend-paying companies4. Buy bonds

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]]>economic recoveryEconomicRecoveryeconomyForeclosuresmarc okonMarcOkonpet food stampsPetFoodStampsunemploymentDavid ScheppWed, 01 May 2013 05:00:00 ESTGrieving Daughter Gives Bank Real Proof of Dad's Death: His Asheshttp://www.dailyfinance.com/2013/04/17/grieving-daughter-rbs-bank-dead-fathers-ashes/http://www.dailyfinance.com/2013/04/17/grieving-daughter-rbs-bank-dead-fathers-ashes/http://www.dailyfinance.com/2013/04/17/grieving-daughter-rbs-bank-dead-fathers-ashes/#commentsFiled under: , , , ,

Manchester Evening News
Anyone who's ever had a parent die knows that dealing with a loved one's financial matters afterward is one of life's less pleasant tasks. It can mean numerous letters or trips to a bank or credit card company to close accounts, have money transferred and more.

So pity poor Siobhon Peers, who lost her father, David, to cancer in October 2011, but continued to receive letters -- about 20 in all -- from the Royal Bank of Scotland, saying the deceased owed 6 pounds (about $9.14 at current exchange rates) on his account, the result of a standard overdraft charge.

As London's Telegraph newspaper reports, Peers sent a copy of her father's death certificate to the bank to close his account, but the bank demanded an original copy and continued to send letters. "I sent them a copy of the death certificate and that should have been enough," Peers told the newspaper. "I wasn't going to send them the original as I want to keep that."

Nevertheless, month after month, bank charges continued to pile up, as the outstanding overdraft amount mushroomed to 625 pounds with interest.

Fed up, Peers eventually went down to her local Royal Bank of Scotland branch and gave them what they were looking for -- and more. In addition to an original copy of her father's certificate, she also produced her father -- such as he remains -- in ashes contained within in an urn.

As the Telegraph reports:

Staff stared open-mouthed and customers looked on in shock as Peers said: "You wanted proof my dad is dead -- well, here he is. I've brought him along with me."

She later said: "I took my dad to the bank, slapped his ashes on the counter and thought that would be the end of it. There was nothing owing on the account and I'm sick of getting hassled."


Peers, who has two sons and still lives in the house she shared with her father, lost her mother, Norma, when she was just 15.
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Commenting on the matter, a spokesman for the Royal Bank of Scotland told the Telegraph: "After Ms. Peers visited the branch further information came to light which meant it was necessary to contact her again. We apologize for any distress cause and have now closed the account."

Despite her distress, we can't help wonder if Peers isn't rather grateful that her father was cremated, since a coffin is considerably more difficult to tote around.

(h/t Business Insider)



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]]>bank feesdeath certificatefinancial servicesoverdraft feesroyal bank of scotlandSiobhon PeersThe Daily TelegraphDavid ScheppWed, 17 Apr 2013 14:21:00 ESTAs Cyprus' Woes Deepen, Interest in Bitcoin Soarshttp://www.dailyfinance.com/on/cyprus-bank-crisis-bitcoin-soars/http://www.dailyfinance.com/on/cyprus-bank-crisis-bitcoin-soars/http://www.dailyfinance.com/on/cyprus-bank-crisis-bitcoin-soars/#commentsFiled under: , , , ,

Bitcoin and Cyprus Getty Images | Steve Jurvetson, Flickr.com
Getty Images | Steve Jurvetson, Flickr.com
The recent decision by the government of Cyprus to shut down the island's banks and limit the amount depositors can withdraw from their accounts reveals just how real the country's financial woes are. Yet even as Cypriots are most keen to get their hands on cold, hard cash, some investors are placing their bets on the virtual currency known as bitcoin.

Bitcoin in some senses is a financial island, operating at a safe distance from the traditional banking system.

Used primarily to buy goods and services online, bitcoin is a recent invention, created just four years ago by an Internet hacker (or group of hackers) known as Satoshi Nakamoto. As Bloomberg BusinessWeek notes, even by Web standards, bitcoin "is a strange and supergeeky phenomenon."

Bitcoins operate on a network that somewhat resembles a typical exchange on the capital markets. As CNBC reports, buyers can exchange national currencies for bitcoins and use them wherever they are accepted, and sellers can exchange bitcoins for traditional national currencies.

As the financial crisis has deepened in Cyprus, and holders of euros and Russian rubles become increasingly anxious, the value of the bitcoin has surged. As ABC News reports, the exchange rate for 1 bitcoin has soared to nearly $80 from $40 just two weeks ago.
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Bitcoin is "clearly having a breakthrough moment here, and a deeply surprising one given its novelty and nascent infrastructure," Nicholas Colas, chief market strategist at ConvergEx Group, told the network.

As DailyFinance reported last year, bitcoin in some senses is a financial island, operating at a safe distance from the traditional banking system. It's neither controlled by central banks nor governments, and thus not vulnerable to larger-scale shifts like changing interest rates, nor the rampant inflation of countries in decline.

It's that isolation from geopolitical turmoil that has been its true selling point for people in Europe.

How does it work? As Motley Fool reports, instead of relying on a central bank or other regulatory body, bitcoin transactions are verified through peer-to-peer interactions. If a user sends bitcoins to another user's "wallet" file, that transaction is verified through other users, and is written into a collective transaction log. Transactions are easy, and fees for transfers are minimal.

As with any currency, however, there are risks, including volatile swings in the value of bitcoin, which makes it difficult for businesses to accept them with any degree of confidence.

Currency analysts, however, are at least willing to give bitcoin the benefit of the doubt as a legitimate trading vehicle as situations like Cyprus continue to crop up.

As Christopher Vecchio, currency analyst at DailyFX, told CNBC. "Right now, it seems safe, [though] it wouldn't be my preferred vehicle to trade money because it's unregulated."


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]]>bitcoincurrency tradingCypruscyprus banking crisisEuropean debt crisisEurozoneFinanceInternetonlineonline shoppingSatoshi Nakamotovirtual currencyWebDavid ScheppThu, 28 Mar 2013 15:23:00 ESTEmployers Caught Off Guard by 'Unfair' Health-Care Feehttp://www.dailyfinance.com/2013/03/15/employers-caught-off-guard-by-unfair-health-care-fee/http://www.dailyfinance.com/2013/03/15/employers-caught-off-guard-by-unfair-health-care-fee/http://www.dailyfinance.com/2013/03/15/employers-caught-off-guard-by-unfair-health-care-fee/#commentsFiled under: , , ,

employers health care fee
Getty Images
Employers are bracing for big fees next year for insuring their employees. The fee, equal to $63 for each worker, is a little-noticed requirement of the Patient Protection and Affordable Care Act that became law in 2010. The fee goes to create a $25 billion fund for insurance companies to offset the cost of covering patients with high medical bills.

As The Wall Street Journal reports, the fee will hit most large employers, and they're fighting back. The requirement unfair, they say, because it subsidizes individually purchased plans that won't cover their workers. Companies including Boeing Co. (BA) and a union health plan covering retirees of General Motors (GM) Ford Motor Co. (F) and Chrysler, among other groups, have asked federal regulators to exclude or shield their insurance recipients from the fee.

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The fee goes into effect next year and applies to medical plans covering millions of Americans. It applies to employers who self insure as well as private plans sold by insurers. As the Journal notes, the fee will be smaller in 2015 and 2016, but amounts for those years have yet to be determined.

Few noticed the fee when the act passed three years ago. Employers have spent recent months trying to peel it back, the Journal reports, but final regulations published Monday in the Federal Register left it largely intact.

You can read more about the controversy and learn what insurers are saying in the full story (subscription required).

Obama Speaks Out On Affordable Care Act At State Of The Union

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]]>affordable care actemployersemployers health care feefeeshealth care reformhealth insuranceinsurersobamacareregulationtaxDavid ScheppFri, 15 Mar 2013 12:08:00 ESTSamsung's Newest Smartphone Set For Splashy New York Debuthttp://www.dailyfinance.com/2013/03/14/samsung-galaxy-smartphone-debut-iphone-rival/http://www.dailyfinance.com/2013/03/14/samsung-galaxy-smartphone-debut-iphone-rival/http://www.dailyfinance.com/2013/03/14/samsung-galaxy-smartphone-debut-iphone-rival/#commentsFiled under: , , , ,

Samsung Electronics is taking to the Big Apple to reveal its next big challenge to Apple's iPhone 5 -- a successor to its top-selling Galaxy S III smartphone. (Spencer Platt/Getty Images)
Samsung Electronics is set to unveil its latest smartphone at a high-profile event Thursday evening in New York, where the company has rented New York's Radio City Music Hall to unveil the Galaxy S IV, expected to hit store shelves in April or May.

The smartphone, the successor to the wildly popular Galaxy S III, is expected to have an even larger screen than its predecessor, which sports a screen that measures 4.8 inches diagonally, much larger than the 4-inch screen on Apple Inc.'s (AAPL) iPhone 5. What's more, the Galaxy S IV is expected to unveil several novel technologies that make the phone easier to use. For more on that, check out the latest news from Engadget.

The Associated Press contributed to this report.

Gallery: 6 Ways Google Glass Will Change the Way You Shop

1. Barcode Scanning and Price Comparisons2. Budget and Account Balance Checks3. Get Better Customer Service4. Get Live Feedback on That Outfit5. Divide and Conquer at the Grocery Store

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]]>ApplecellphoneConsumer Electronicsiphonemobile phonemobile technologyradio city music hallsamsungsamsung galaxy ssmartphonessxswDavid ScheppThu, 14 Mar 2013 09:50:00 ESTJuly Jobs Report: 4 Pieces Of Good News Buried In The Gloomhttp://www.dailyfinance.com/2012/08/03/july-jobs-report-4-pieces-of-good-news-buried-in-the-gloom/http://www.dailyfinance.com/2012/08/03/july-jobs-report-4-pieces-of-good-news-buried-in-the-gloom/http://www.dailyfinance.com/2012/08/03/july-jobs-report-4-pieces-of-good-news-buried-in-the-gloom/#commentsFiled under: ,

The long, slow slog that is improvement in the labor market continued in July, the Labor Department reported Friday. For many job seekers, that means the difficulty many have experienced in landing a new position remains.

As the Labor Department reported, employers added 163,000 jobs last month -- far more than the 100,000 forecast and the biggest gain since February. But the nation's unemployment rate ticked up to 8.3 percent. Those seemingly divergent moves are caused in part by more job seekers reentering the labor market and being counted as unemployed.

Continue reading July Jobs Report: 4 Pieces Of Good News Buried In The Gloom


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]]>employersemploymenthiringjob seekersjoblessjobless numbersjobless ratejobsjulylabor marketu.s. economyunemploymentunemployment rateworkersDavid ScheppFri, 03 Aug 2012 11:15:00 ESTThe Horrorible Life Of A Hollywood Stunt Performerhttp://www.dailyfinance.com/2011/11/08/the-horror-ible-life-of-a-hollywood-stunt-performer/http://www.dailyfinance.com/2011/11/08/the-horror-ible-life-of-a-hollywood-stunt-performer/http://www.dailyfinance.com/2011/11/08/the-horror-ible-life-of-a-hollywood-stunt-performer/#commentsFans of the 1980s action TV series, "The Fall Guy," are likely familiar with the hard-luck life of the average Hollywood stunt performer. Only a relative few can eke out a living from their chosen profession, and instead rely on odd jobs to survive.

Kane Hodder (pictured at left) is well acquainted with the plight of stunt performers. Though he has worked steadily for most of the more than 30 years he's been in the business, the first few years, he'll tell you, were pretty lean. "I starved for 8 years ... because I didn't work enough," Hodder tells AOL Jobs in an interview.

Continue reading The Horrorible Life Of A Hollywood Stunt Performer


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]]>hollywood+stunthollywoodstuntkane+hodderkanehodderwork+stunt+performerworkstuntperformerDavid ScheppTue, 08 Nov 2011 13:15:00 ESTReports Show Much Improved Jobs Picture For Octoberhttp://www.dailyfinance.com/2011/11/02/reports-show-much-improved-jobs-picture-for-october/http://www.dailyfinance.com/2011/11/02/reports-show-much-improved-jobs-picture-for-october/http://www.dailyfinance.com/2011/11/02/reports-show-much-improved-jobs-picture-for-october/#commentsFiled under:

The nation's struggling jobs picture continue to improve in October, despite ongoing concern about the anemic economic recovery, two reports showed Wednesday.

Private employers in the U.S. added 110,000 jobs last month, according to the ADP National Employment Report, more than the 101,000 analysts expected, Reuters reported. Further, the ADP report showed job creation was better in September than first reported. ADP said private employers added 116,000 new jobs in September, up from a previously reported 91,000.

"It is not a huge amount better, but the fact that it was better than expected and there was a revision in the last month's number is a pretty encouraging sign," Peter Jankovskis of Oakbrook Investments in Lisle, Ill., told the wire service.

A second report showed planned layoffs in October fell to their lowest levels since June. After reaching a 28-month high in September, the number of planned job cuts announced by U.S.-based employers fell 63 percent in October to 42,759, according to employment-services firm Challenger, Gray & Christmas.

In September, employers announced 115,730 job cuts, the highest total since 132,590 in April 2009, Challenger noted.

The Challenger report also showed that companies announced plans last month to boost their staffs by 160,000, helped in part by seasonal hiring ahead of the upcoming holiday season.

The biggest declines in planned job cuts were in the financial and government sectors, the report said. After announcing 54,182 cuts to personnel levels in September, the government announced just 2,785 job cuts in October, a drop of 95 percent.

The financial sector, meanwhile, reported planned cuts of 497 jobs last month, a 98 percent decline from the more than 31,000 announced in September.

Despite the dramatic declines, Challenger CEO John Challenger said neither sector is "out of the woods" yet and the potential for more mass layoffs remains.

Most cuts in government jobs have been at the state level, Challenger said in a statement. "We have yet to see the full impact of mandated federal spending cuts," he said, noting that the U.S. Postal Service alone is expected to cut 200,000 jobs.

The Challenger report also revealed other areas of continued weakness in the labor market.

Though lower than in September, planned layoffs last month were up nearly 13 percent compared to a year ago, and employers so far this year have announced more than 520,000 job cuts. That compares with about 450,000 during the same 10-month period last year.

Still, Challenger noted, job cuts so far this year remain "well below" levels two years ago. By this point in 2009, the reports said, planned layoffs totaled nearly 1.2 million.

Both reports were released in advance of the Labor Department's month employment report, due out Friday. Analysts expect the government report will show the U.S. economy added 103,000 jobs last month, according to consensus estimates compiled by Bloomberg.

Analysts also expect the nation's unemployment rate to remain at 9.1 percent -- marking the fourth consecutive month in which joblessness remained at that level.


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]]>ADP National Employment ReportAdpNationalEmploymentReportjob creationJobCreationDavid ScheppWed, 02 Nov 2011 11:02:00 ESTFord Expands Recall of F-Series Trucks Over Faulty Airbagshttp://www.dailyfinance.com/2011/04/14/ford-f-series-pickup-truck-recall-expands-faulty-airbags/http://www.dailyfinance.com/2011/04/14/ford-f-series-pickup-truck-recall-expands-faulty-airbags/http://www.dailyfinance.com/2011/04/14/ford-f-series-pickup-truck-recall-expands-faulty-airbags/#commentsFiled under: , ,

Ford Expands Recall of F-Series Trucks Over Faulty Airbags Ford Motor (F) is expanding a recall of its popular F-Series truck line because of faulty airbags that can deploy unexpectedly and possibly lead to injuries, federal regulators said Thursday.

The expanded action now includes some 1.2 million trucks from the 2004 through 2006 model years, substantially more than the 135,000 pickups Ford agreed to in its first U.S. recall related to the problem in February.

The F-Series pickup has perennially been the nation's top-selling vehicle.

Speculation that Ford would expand the recall heightened last week after National Highway Traffic Safety Administration chief David Strickland said that talks between his agency and the Dearborn, Mich.-based company remained ongoing after more than a month of negotiations, The Detroit News reported.

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Though he praised the automaker for recalling 135,000 vehicles, Strickland added, "Our folks think that we would like to see something larger than that."

NHTSA said it has reports of 269 air bag deployments and 98 injuries from 2004 to 2006 F-150 vehicles. Injuries include chipped teeth, fractured arms and burns.

Ford had resisted adding more vehicles to the recall, it said in February, because the number of incidents was low, the injuries were minor and "consumers received adequate warning" as a result of an illuminated air-bag warning light that alerts drivers that their vehicles need to be serviced.

Thursday's recall is the latest in a string of recalls for the nation's No. 2 automaker. In late January, Ford recalled about 525,000 Windstar minivans for steering and handling problems that may result from corroded suspension parts caused by road salt. Many of those vehicles had been recalled under a previous action last August to repair corroded rear axles.

In early February, Ford recalled 360,000 F-Series trucks to repair faulty interior door handles. And last month, the automaker called back about 24,000 Ford Ranger pickups from the 2010 model year and 8,000 F-Series pickups and crossover vehicles from the 2011 model year to fix problems related to fuel leaks and electrical shorts.



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]]>accidentairbagsDavid Stricklanddearbornf-150F-Seriesf-series recallfordford recallNational Highway Traffic Safety AdministrationNHTSAPickuppickup truckrecallsafetytechnologyDavid ScheppThu, 14 Apr 2011 10:45:00 ESTThe Tax Deadline Looms: Advice for Last-Minute Filershttp://www.dailyfinance.com/2011/04/13/tax-deadline-advice-for-last-minute-filers/http://www.dailyfinance.com/2011/04/13/tax-deadline-advice-for-last-minute-filers/http://www.dailyfinance.com/2011/04/13/tax-deadline-advice-for-last-minute-filers/#commentsFiled under: , ,

Tax Deadline Time: Advice for Last-Minute Filers Americans get three extra days this year beyond the typical April 15 deadline to file their income tax returns. But those who have put off preparing their returns until the last minute may still find that they'll need to file an extension to avoid penalties if they can't get their returns in the mail by midnight Monday.

With just days to go before taxes are due, last-minute filers need to be prepared and focused to ensure their tax returns are accurate and contain all the necessary information, advises Jackson Hewitt Tax Service (JTX), which is extending its business hours nationwide to deal with the crush of last-minute questions.

"We know as the deadline approaches, many taxpayers will feel overwhelmed and won't know where to begin," says Mark Steber, Jackson Hewitt's chief tax officer. The company's staff is ready to deal with all the questions that last-minute filers so often ask, including how to determine whether they need to file an extension, and how to file one if they do.

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An experienced tax preparer can be key in helping you determine whether you owe taxes, and whether or not you need to file for a six-month extension, which gives you until Oct. 17 to file your return. It's important to note, though, that filing for an extension doesn't mean taxpayers can put off paying taxes, says William P. Miller, a certified public accountant based in suburban Minneapolis.

"A late filer must estimate both state and federal taxes owed and pay them by the return due date," he says. Taxpayers will be charged interest as well as a late-filing penalty on any remaining balance that's not paid by the April 18 deadline.

For taxpayers who find themselves making a last-minute dash to an accountant or tax preparer, Jackson Hewitt offers this partial checklist of documents necessary to compile a complete return:
  • Wage Statements (Form W-2)
  • Form 1099
  • All other income amounts
  • Unemployment compensation received (Form W-2G)
  • Social Security Card(s)
  • Driver's License(s)
  • Dependents' social security numbers and dates of birth
  • Last year's federal and state tax returns; last year's state refund amount (if applicable)
  • Mortgage interest paid and real estate taxes (Form 1098)
  • Total of all cash and non-cash charitable contributions
  • Any records to support your deductions
  • Form HUD-1 or its equivalent if filing for a First-Time Homeowner Credit



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]]>10401040 formsaccountantestimated taxfederalfederal governmentinternal revenue serviceirsJackson Hewitttax extensiontax preparertax refundTax Returnstax tipstaxesU.S. TreasuryDavid ScheppWed, 13 Apr 2011 12:00:00 ESTWalmart Woos Customers With Revived 'Low Prices, Every Day' Campaignhttp://www.dailyfinance.com/2011/04/11/walmart-woos-customers-low-prices-every-day-campaign/http://www.dailyfinance.com/2011/04/11/walmart-woos-customers-low-prices-every-day-campaign/http://www.dailyfinance.com/2011/04/11/walmart-woos-customers-low-prices-every-day-campaign/#commentsFiled under: , , , ,

Walmart Woos Customers With Revived 'Low Prices, Every Day' Campaign In this economy, retailers have to fight for every dollar that consumers are willing to spend. One way to do that, of course, is to offer weekly sales. A great deal, whether it's on paper towels or the latest seasonal fashions, helps drive traffic through the front door or to a website.

The problem is that offering good deals on select sale items doesn't always translate into purchases of other items at regular prices with better profit margins. And that can pinch retailers' bottom lines.

So leave it to Walmart Stores (WMT), the nation's largest retailer, to revisit a marketing gimmick it used to great effect once before: "Low prices, every day." The company, which is rolling out a new ad campaign Monday, says it also plans to bring back some 8,500 items that have disappeared from its shelves in recent years.

The so-called "assortment changes" will bring back customers' favorite local food and other products, Walmart said in a statement. The company also plans to conduct more frequent surveys of other retailers' prices on similar goods to ensure its stores offer lower prices on the right mix of items.

"Our company is determined to create the best one-stop shopping experience and low prices on the right products backed by a clear, consistent ad match policy," Duncan Mac Naughton, Walmart's chief merchandising officer in the U.S., said in a statement.

"Walmart is making progress with their re-merchandising, and the launch of the ad campaign shows that most items to be returned are now back in the stores," Sanford C. Bernstein retail analyst Colin McGranahan told Bloomberg News. "Whether that will be enough to lure disenchanted customers back remains to be seen."

Reversing a Failed Strategy

The retailer's prior advertising campaign -- "Save Money, Live Better" -- failed to drive more consumers through the door. Despite its dominance in the U.S. market, the Bentonville, Ark.-based retailer has endured seven straight quarters of falling sales at its stores.

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That previous campaign involved neatening stores and reducing the number of items for sale. While that may have seemed a good strategy, it defined shopping at Walmart a lifestyle choice, causing consumers to perceive the popular retailer as moving away from the low prices and variety they had come to expect, says Paul Kurnit, clinical professor of marketing at Pace University.

"The Walmart that we knew three and five years ago was a pretty messy shopping experience, but that was kind of OK, because we knew we were getting the lowest possible prices," Kurnit says. He adds that research shows that more items on retail-store shelves translates into bigger totals at the check-out counter.

Offering customers a one-stop shopping experience that assures customers of low prices on a variety of goods is good strategy in these days of steadily rising fuel costs and economic uncertainty, Kurnit says.

With gas prices at $4 a gallon and higher prices expected, he says, "People are really feeling the crunch."


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]]>advertisingBargain Shoppinglow prices every daymarketingrecessionretailretailerssalessave money live bettersloganwal-martwalmartDavid ScheppMon, 11 Apr 2011 11:00:00 ESTToyota Prius Hits Million-Sale Milestone in U.S.http://www.dailyfinance.com/2011/04/06/toyota-prius-hits-million-sale-milestone-us/http://www.dailyfinance.com/2011/04/06/toyota-prius-hits-million-sale-milestone-us/http://www.dailyfinance.com/2011/04/06/toyota-prius-hits-million-sale-milestone-us/#commentsFiled under: , , , ,

Toyota Motor's (TM) recall woes may have pushed U.S. sales of Toyota and Lexus vehicles lower during the past year, but they haven't stopped one popular model from setting a new milestone.

Propelled in part by higher prices at the gas pump, the fuel-efficient Toyota Prius hybrid recently surpassed 1 million sales in the U.S., Toyota said Wednesday in a statement.

Since it first went on sale in the U.S. sales over a decade ago, "[the] Prius has become synonymous with the word hybrid and as we see fuel prices starting to rise again, it has accounted for more than 60% of hybrid passenger car sales so far this year," says Bob Carter, general manager of the company's Toyota division.

Worldwide, Prius sales topped the 2 million mark in October, and global sales of all Toyota and Lexus brand hybrids exceeded 3 million last month, Toyota says. The Japanese automaker's closest competitor, Honda Motor (HMC), has sold roughly a fifth as many hybrid vehicles.

Setting the Standard for Hybrids

"It's an achievement to sell a million units of a somewhat unusual looking car with a very different power train in North America," says John Voelcker, editor at GreenCarReports.com.

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For better or worse, the Prius has become both an automotive and cultural touchstone, says Voelcker. Its appeal crosses ideological divides, from environmentally conscious liberals who want to reduce their carbon footprints to conservatives who want to lessen the nation's dependence on imported oil.

Unlike cars with conventional power trains, the standard-setting Prius uses both electricity- and gas-powered engines that work in tandem to optimize fuel economy. When stopped at a traffic light, for example, the gas motor shuts down to save fuel, but quickly and quietly resumes operating as soon as the gas pedal is pressed. It's this technology that allows the Prius to achieve around 50 mpg in both city and highway driving -- impressive for a mid-sized car.

Still a Niche Seller

Beyond its enviable fuel economy, demand for the Prius has been stoked by government subsidies in several nations keen on reducing greenhouse gas emissions, among them Japan and the U.S., notes Arthur Wheaton, an auto industry analyst at Cornell University's ILR School. Generous tax credits in Japan, for example, helped propel demand for the Prius higher than for Toyota's more traditional Corolla compact, itself a huge seller.

Wheaton says that while the Prius may be popular, it hasn't sparked demand for hybrids across the industry. "It at least made the technology seem feasible," he says, "but no other car has actually been able to duplicate its success."

Still, a million-car milestone isn't all that remarkable compared to other vehicles sold in the U.S. Ford Motor (F), for example, sold more than half a million copies of its F-Series pickup line last year alone.

A good run for an automotive assembly plant is 250,000 cars a year, says Philip Gott, director of automotive solutions at IHS (IHS). But the million-Prius milestone is significant for a vehicle that set the market expectations of how a hybrid vehicle should look, feel and perform.

"To that extent, you can't take anything away from Toyota," Gott says. "They put the stake in the ground that everyone else is now scrambling around." The Prius is the car of choice for consumers who looking for a fuel-efficient vehicle and don't mind paying a bit more for it.

Toyota's Post-Earthquake Outlook

Now, Toyota's fortunes are tied in large part to the Japanese government's ability to recover from the devastating 9.0 earthquake and tsunami that struck the northeast part of the country last month, says Cornell's Wheaton. All the Japanese automakers will likely face a growing wave of parts shortages at their U.S. plants in the coming weeks -- shortages that will likely lead to shutdowns, he says.

As for production of the Prius, which is manufactured solely in Japan, Toyota's biggest issue is anticipated blackouts caused by the loss of power generation from damaged nuclear plants, Wheaton says.

For its part, Toyota said in a statement Wednesday that production of the Prius and two Lexus hybrid models -- the CT 200h and HS 250h -- continues at two plants, although at less than capacity. The automaker also said it will continue to manufacture replacement parts and parts for overseas production in Japan.

Toyota said its 13 North America vehicle plants continue to operate on normal two-shift schedules, but overtime and Saturday shifts have been canceled.



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]]>auto industryauto salesautomobileautomobile industryAutomobile manufacturingcargas electric hybridhondahybridplug-in hybridpriussuvtechnologytoyotatransportationtruckvehicleDavid ScheppWed, 06 Apr 2011 16:15:00 ESTGas Prices Around the Globe: Who Feels the Most -- and Least -- Pain at the Pumphttp://www.dailyfinance.com/2011/03/29/gas-prices-world-high-low-country-pain-pump/http://www.dailyfinance.com/2011/03/29/gas-prices-world-high-low-country-pain-pump/http://www.dailyfinance.com/2011/03/29/gas-prices-world-high-low-country-pain-pump/#commentsFiled under: ,

Gas Prices Around the Globe With average U.S. gas prices hovering at historic highs, plenty of Americans are anxious about the cost of filling up. Analysts blame the recent steady rise in oil prices on unease about the Middle East and anticipation of increased global demand as the world economy continues to recover from the recession.

According to AAA's Daily Fuel Gauge Report on Tuesday, the nationwide average for self-serve unleaded regular gasoline was $3.59 a gallon. That's about 80 cents a gallon more than a year ago and 30 cents a gallon higher than on the same day in 2008, when gasoline prices were rising toward their all-time record high of $4.11 a gallon, which they hit four months later.

Despite the pain Americans are feeling at the pump, we still pay much less than the drivers in many other developed nations in the world. Canadians, for example, pay about a third more than U.S. consumers, even though Canada is the biggest foreign supplier of oil to the U.S.

According to a survey this month of worldwide gasoline prices by AIRINC, a Cambridge, Mass.-based consulting firm, the price per gallon in Toronto averaged $4.96 for regular grade fuel, while in New York City, prices at the pump averaged $3.82.

Even Canadian prices are bargains compared to those in several European nations, as well as some in Africa and Asia. Among the nations with the highest gas prices: Turkey, Eritrea and Norway. Residents of Istanbul pay the equivalent of $9.63 a gallon, according to AIRINC's survey, while those in Eritrea's capital, Asmara, and Oslo aren't far behind with per-gallon prices of $9.59 and $9.27, respectively.

Greece, Denmark, Sweden, Belgium, the United Kingdom and the Netherlands are also among countries with some of the world's highest gasoline prices, with drivers paying at least $8 a gallon.

In Libya, Low Prices (But High Risk) at the Pump

Still, it isn't likely that many U.S. consumers will take much solace in knowing that they spend far less on gasoline than their counterparts elsewhere.

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"I doubt many Americans are concerned about what others are paying overseas or outside of the United States," says AAA spokesman Troy Green. That's especially true for those living paycheck to paycheck, or on fixed incomes, or who have been unemployed long term, he says. "When you look at those three groups, it's really tough on them right now."

Despite ample supplies of crude oil, prices have risen steadily since last summer. Civil unrest in the Middle East is one reason some traders have been bidding up the price of oil. On Tuesday, crude prices remained above $104 a barrel in trading on the New York Mercantile Exchange.

Yet while gas prices in the U.S. and many other countries continue to rise, prices in Libya, which has been the scene of some of the region's bloodiest chaos recently, have remained relatively stable at around 54 cents a gallon, according to AIRINC spokesman Scott Sutton. Libya, like many of its fellow OPEC nations, has among of the lowest gas prices in the world, thanks to government subsidies.

Sutton noted, however, that amid the current upheaval in their country, many Libyans are too fearful to fill up for fear of being shot. Other countries where gas prices remain at bargain-basement levels include Venezuela, Saudi Arabia, Turkmenistan, Bahrain, Kuwait and Qatar. In cities in each of those countries, pump prices were well below $1 a gallon, according to AIRINC's survey. In the Venezuela capital of Caracas, heavily subsidized gasoline was selling for a mere 6 cents a gallon.

Whether gas prices in the U.S. will head lower or creep even higher in coming weeks in advance of the summer driving season remains unknown. After prices hit record highs in the summer of 2008, few analysts predicted that they would rapidly plummet to their lowest levels in years -- but they fell to a national average of $1.62 a gallon on Dec. 30, 2008, according to AAA.

"It's a foolhardy practice to try to predict long term what gasoline prices are going to be with a measure of accuracy," says the AAA's Green. "You just don't know."

Cities Worldwide with the Highest and Lowest Prices for Gasoline (March 2011)


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]]>aaaAfricaAsiabest gas pricescheap gascrudedaily fuel gauge reporteconomyenergyeritreaEuropefuel costsgas pricesgasolinelibyamideast unrestNorwayoilOil Speculationprice per gallonrecord high gasoline pricesrecoveryTurkeyunleaded regular gasolinevenezuelaWorld gas pricesDavid ScheppTue, 29 Mar 2011 15:30:00 ESTGM's Stock Price Falters as Company Revisits Failed Strategieshttp://www.dailyfinance.com/2011/03/28/gms-stock-price-falters-as-company-revisits-failed-strategies/http://www.dailyfinance.com/2011/03/28/gms-stock-price-falters-as-company-revisits-failed-strategies/http://www.dailyfinance.com/2011/03/28/gms-stock-price-falters-as-company-revisits-failed-strategies/#commentsFiled under: , , , , , ,

For shareholders in General Motors (GM), March has been more bear than lion. The automaker's stock has consistently traded below $33 a share -- the price stipulated in its initial public offering last November.

Over the past month, GM shares have lost nearly 8% of their value. To be sure, some of the drop in value is related to events outside of GM's control: soaring fuel prices, instability in the Middle East and Japan's earthquake.

But there is likely one other source for the current spate of investor angst: Chief Executive Daniel Akerson. On more than one occasion, Akerson has expressed frustration that GM engineers aren't able to more quickly churn out fresh products -- something the automaker needs to do to keep pace with crosstown rival Ford Motor (F) and Asian automakers, including South Korea's Hyundai Motor.

'Like a Can of Diet Coke'

Akerson's discontent is driven by his perception that GM is no different from any other consumer-products company. Citing Coca-Cola (KO) as an example, Akerson recently told The Wall Street Journal that a GM car was just like the can of Diet Coke he was drinking during the interview.

"GM has to start acting like a consumer-driven -- not [an] engineering-driven -- company," Akerson said. "We sell a consumer product -- our can just costs $30,000."

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To analysts (and no doubt GM employees who have been down this road before), Akerson's comments are dispiriting. Believing that cars are no different from beverages, neckties or nail polish is what caused GM's downfall and subsequent bankruptcy in 2009. It was the source of the company's bland product offerings in the 1990s, which eventually led the company to hire auto-design guru Bob Lutz in 2001 to turn things around.

Akerson isn't the first CEO of a Detroit automaker to make the same wrongheaded assumption. Jacques Nasser, who led Ford for nearly three years before being fired in 2001, sought to rearrange the Dearborn, Mich.-based company into autonomous consumer business groups. He also, as with GM in recent years, pushed out people who knew the car business and hired from outside the industry.

Nasser's belief was that Ford was a consumer-products company that happened to sell cars, says Arthur Wheaton, who analyzes the auto industry for Cornell University's school of industrial and labor relations. "It was a huge flop."

More in Common with Tech Companies

Car companies have more in common with technology companies, such as Apple (AAPL), a company that views innovation and engineering as key, Wheaton says. Unlike beverages or hand cream, automobiles are constantly evolving technologies. Just as you wouldn't hire someone whose expertise is in shampoo or razor blades to develop the next generation iPhone or iPad, it makes as little sense to expect the same people to develop new cars, trucks and utility vehicles.

By adhering to its principles, Apple hasn't only become an iconic brand known for innovation, its reputation has allowed the company to ask for and get a premium price for the products its sells, which raises another concern among GM shareholders.

In the months after GM exited bankruptcy in 2009, the revived automaker stuck to its guns by not deeply discounting cars to spur sales, instead relying on a formula that produced hefty profits from each vehicle sold. But the automaker has since backtracked in a bid to boost its share of the U.S. car market by offering generous incentives.

To be sure, rebates, and cheap financing and lease rates have helped GM move more vehicles off dealers' lots, as last month's sales figures showed. February sales surged 46%, exceeding analyst estimates as well as those of GM itself.

But analysts warn those sales come at a cost -- reduced trade-in values, as one example. "We don't see any upside to incentives," Eric Lyman of Automotive Lease Guide told MSNBC.com. "It is manipulating the market and lowering the cost of your vehicles, which lowers the resale value of your used vehicle in the market."

GM so far has done a remarkable job at turning itself around. With the two-year anniversary of its bankruptcy looming, however, it's unclear whether reshaping its identity and selling cars on the cheap can help the company stay on the road to recovery.


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]]>daniel akersongeneral motorsGeneral Motors IPOGM CEOgm stock priceDavid ScheppMon, 28 Mar 2011 08:00:00 ESTUAW Head Uses Ford CEO's $50 Million Payday to Rally Union for Talkshttp://www.dailyfinance.com/2011/03/22/uaw-head-uses-ford-ceos-50-million-payday-to-rally-union-for-t/http://www.dailyfinance.com/2011/03/22/uaw-head-uses-ford-ceos-50-million-payday-to-rally-union-for-t/http://www.dailyfinance.com/2011/03/22/uaw-head-uses-ford-ceos-50-million-payday-to-rally-union-for-t/#commentsFiled under: , , , , , ,

UAW Head Bob King Uses Ford CEO's $50 Million Payday to Rally Union for Talks Ford Motor's (F) recent decision to award its star CEO, Alan Mulally, more than $50 million in compensation for last year's record $6.6 billion profit caused more than a few eyebrows to be raised around Detroit.

Among those reacting unhappily to the pay package were members of the United Auto Workers. The Dearborn, Mich.-based automaker sought and received millions of dollars in contract modifications from unionized workers in 2009 to help the company weather the financial crisis.

Now, with Ford once again profitable, the UAW wants back some of what it gave up, and it's showcasing Mulally's paycheck as proof the automaker can afford to do it. The union will begin negotiating a new four-year pact with Ford, as well as General Motors (GM) and Chrysler Group later this year.

Speaking Tuesday, at a three-day delegates' meeting in the Motor City, UAW President Bob King (pictured) said Ford, which has in recent years only hired temporary workers at entry-level wages, should make them full-time employees, the Detroit Free Press reported.

"When Alan Mulally can make over $50 million in a bonus, temporary workers have a right to a decent job and benefits," King said.

Next Goal: Organizing Foreign-Owned Factories

In addition to concessions granted two years ago, Ford's unionized workforce, along with those of GM and Chrysler, agreed to a two-tiered wage scale that pays entry-level workers about half the rate paid to more senior workers. Ford has hired about 2,100 workers as temporary employees at an entry level wage of about $14 an hour, according to the Free Press.

King, 64, said he isn't opposed to entry-level wage jobs because it may help build the union's ranks. But he's also eager to get the best deal he can for his membership, and remains committed to increasing union representation within the overall auto industry.

The UAW president has his sights set on organizing American factories run by foreign-based automakers, including Japan's Toyota Motor (TM) and Germany's Daimler, parent of Mercedes-Benz. King says he expects to organize at least one non-union automaker this year.

He also urged UAW delegates Tuesday to be realistic as it sets a bargaining strategy for all of the industries where it represents workers.

Union members have to honest with themselves, King said. "If we don't have a plan to build the power to win these goals, then they become irrelevant."

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]]>alan mulallyauto industryauto salesautomakersautomobilebill ford jr.bob kingcarcontractcrossoverdearbornDetroitfordlabormanufacturingnegotiationspickupsuvtransportationtruckuawunionUnited Auto Workersvehiclevehicle salesDavid ScheppTue, 22 Mar 2011 16:50:00 ESTMost Toyota Plants in Japan Remain Idlehttp://www.dailyfinance.com/2011/03/21/toyotas-factories-in-japan-remain-largely-idle/http://www.dailyfinance.com/2011/03/21/toyotas-factories-in-japan-remain-largely-idle/http://www.dailyfinance.com/2011/03/21/toyotas-factories-in-japan-remain-largely-idle/#commentsFiled under: , , , , , ,

Toyota Motor (TM) reportedly won't resume vehicle production at any of its plants in Japan on Tuesday, as the automaker had planned. The continued stoppage leaves in question just how soon the world's largest automaker will be able to resume operations in its home market, following the March 11 earthquake and tsunami.

As Japan continues to struggle with rescue and cleanup efforts, Toyota's car manufacturing resumption efforts are on hold, the company told BBC News on Monday. The company plans to issue a statement Tuesday about whether it will resume production Wednesday.

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In a statement last week, Toyota said it was halting production at all plants in Japan through March 22, following the quake that resulted in massive devastation and likely killed more than 10,000 people in northeast Japan.

But the company added, "A decision on when vehicle production will resume in Japan has yet to be made."

Toyota is, however, going ahead with its plan to resume some parts production, Bloomberg News reported. A spokesman for Toyota's European operations told the news agency that that car maker is producing parts for its home replacement market and overseas vehicle assembly, and is working to anticipate and avoid parts shortages at its European production lines.

Factories Across Nation Closed by Widespread Power Outages

Toyota isn't alone in its efforts to bring plants back online. Other Japanese manufacturers are struggling to restart factories following the quake, which led to widespread power outages caused in part by crippled nuclear reactors.

Electronics-maker Sony (SNE) has shut eight plants as workers inspect equipment and facilities. As with Toyota, Sony efforts to restart production are hamstrung by the disruption of the arrival of hundreds of different components from a variety of suppliers.

"This will be played out not in days, but in weeks," John Hoffecker, head of the automotive practice at Detroit consultancy AlixPartners told Bloomberg. "Nothing on this scale has really occurred before."

Honda Motor (HMC), Japan's third-largest automakers has halted operations at six plants, including three automobile factories. Nissan Motors (NSANY), which has also closed six plants, said Sunday it plans to restart production at five of them this week.

The continued shutdown of Honda and Toyota plants has lead to local shortages of certain car models in the U.S., such as the Toyota Prius hybrid and subcompact Honda Fit, both of which are manufactured solely in Japan.

Honda, which builds more than 80% of its vehicles for the U.S. market in North American plants, told U.S. dealers last week that the company has suspended orders for models built in Japan.

U.S. Plants Affected by Parts Shortages

The shutdown of Japanese plants has halted production at a General Motors (GM) plant in Louisiana that relies on transmissions made in Japan. The Shreveport Assembly plant employs nearly 1,000 workers who build Chevrolet Colorado and GMC Canyon compact pickups.

GM said it would resume production as soon as possible and had sufficient vehicles on hand to meet customer demand, Reuters reported. No other GM plants in North America have been affected.

Update: GM is halting some production at a plant in Buffalo, N.Y., that supplies engines for the pickup trucks built at Shreveport, the Associated Press reported Monday. The action will result in 59 workers being furloughed at the Buffalo plant, in addition to 800 job cuts in Shreveport. GM doesn't know when production will resume in Buffalo, AP said.

Other Japanese electronics companies, including Panasonic (PC), Fujitsu and Nikon, have also shuttered plants and don't yet know when they will be able to resume production.


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]]>auto industryauto salesautomakersautomobileautomobile industryAutomotiveXPrizecanyoncarchevroletcoloradofitgeneral motorsgmgmchondahybridjapanjapan earthquakejapan quakemanufacturingmarch 11nissanpriusshreveporttoyotatransportationtruckvehicleDavid ScheppMon, 21 Mar 2011 12:00:00 ESTPeople@Work: The Sorry State of America's Wage Earnershttp://www.dailyfinance.com/2011/03/21/people-work-the-sorry-state-of-americas-wage-earners/http://www.dailyfinance.com/2011/03/21/people-work-the-sorry-state-of-americas-wage-earners/http://www.dailyfinance.com/2011/03/21/people-work-the-sorry-state-of-americas-wage-earners/#commentsFiled under: , ,

It's well known that the typical American household has essentially been running in place or falling behind financially for some time. Sapped by greater outlays for everything from energy and health care to transportation and education, workers' wages have failed to keep up with the cost of living.

What is news, however, is that stagnant wages have been a problem for far longer than anyone heretofore supposed, according to a new report released last week by the Economic Policy Institute, a nonprofit think tank focused on the poor and middle class.

Titled The Sad But True Story of Wages in America, the study found that all workers, regardless of whether they work in the private or public sector, have endured decades of stagnating wages despite significant gains in productivity.

"The EPI study confirmed and elucidated a trend that economists have been tracking for some time," says Matthew Freedman, professor of labor economics at Cornell University's ILR School. "Wages have been relatively flat for the bulk of the U.S. population, not only for the last 20 years, but, in fact, even further back -- well into the '70s."

Demonizing the Public Worker

Freedman says that what gains American workers have seen in earnings "have accrued almost entirely to those at the very top of earnings distribution." That is to say: the rich have gotten richer, while the middle class has been treading water. As a result, the nation has experienced an increasing disparity between haves and have-nots during the last few decades.

The findings throw into sharp relief the current debate about whether public-sector employees -- particularly those who belong to unions -- are paid too much.

As the EPI study puts it:
The current public discussion illogically pits state and local government employees against private workers, when both groups have failed to sufficiently benefit from the economic fruits of their labors.
The tactic of demonizing state workers has been used in Wisconsin, Ohio, and other states where Republican governors and legislators have sought to take away public-sector workers' collective bargaining rights.
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These elected officials, most notably Wisconsin Gov. Scott Walker, argue that state budgets can't afford the largess paid to public-sector employees, despite concessions willingly made by state workers.

The perception that public employees are getting a better deal has stirred up resentment among some in the private sector who, in these austere times, feel they shouldn't be the only ones making sacrifices such as paying more for health care or forgoing raises.

But even if public employees were indeed paid better, the problem with that argument is that it's akin to asking the lone healthy person in a roomful of sick people why he, too, hasn't fallen ill.

A Love-Hate Relationship with Teachers

In the furor that has erupted over state budget deficits, "we've lost sight of the more important aspects of things," Freedman says. It's a classic example of taxpayers' reaction to the conundrum of either paying more in taxes or asking government to cut public workers' salaries.

"When the option is raise my own taxes versus [cut] somebody else's salary," he says, "it's always, 'I'd rather reduce somebody else's salary.'"

It's interesting to think of teachers in this scenario, Freedman says. "On one hand, we spend a lot of time complaining how teachers aren't valued enough, and then on the flip side suddenly now everybody thinks that teachers are greedy and are perhaps overcompensated."

The Only Real Winners: the Wealthy and the Corporations

Of course, the one issue missing from the public debate is that employers have benefited mightily from the fruits of workers' labor in the last couple of decades. According to the EPI study, productivity among American workers grew by 62.5% in the 20 years ending in 2010. Increased productivity benefits companies by reducing their need to hire and train more workers, among other savings.

The rise in productivity is far greater than the increase in real hourly wages for both private-sector, and state and local government workers, which grew 12% in the same period. (EPI notes that overall compensation, which includes health care and other benefits, grew a bit more for both groups, but still lagged well behind productivity growth.)



What's worse is that for workers without college degrees, wage gains have been even more meager. During the same 20-year period, private-sector wages for high-school educated workers grew by just 4.8% -- and a mere 2.6% for state employees. By contrast, real wages for college graduates in the private sector grew 19.4%, compared with 9.5% for those in state government jobs.

Government Policies Put Workers Last

Why have workers, regardless of their education or place of employment, fared so badly in the last few decades? The cause lies in the nation's economic policies, which have not supported good jobs during the last 30 years or so. Rather, EPI's study finds:
The focus has been on policies that were thought to make consumers better off through lower prices: deregulation of industries, privatization of public services, the weakening of labor standards including the minimum wage, erosion of the social safety net, expanding globalization, and the move toward fewer and weaker unions.
Such policies, the group says, have eroded most workers' bargaining power, widened income inequality and reduced access to good jobs.

It's not at all clear how to solve the problem of stagnant wages. Still, Freedman says, "It doesn't seem to me that the solution is an extreme one like policymakers in Wisconsin would like to pursue."

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]]>ColumnscornellCornell UniversityCorporate profitsearningseconomic policyEconomic Policy InstituteemployeesemployersemploymentEPIGOPjobsNew Jerseynonunionohiopayprivate sectorpublic sectorrepublicansscott walkerstaffstagnant wagesunionunion bashingwage disparitywage earnerswageswealthywisconsinwisconsin protestsworkersDavid ScheppMon, 21 Mar 2011 08:30:00 ESTUAW Seeks to Regain Concessions as Contract Talks Loomhttp://www.dailyfinance.com/2011/03/17/uaw-seeks-to-regain-concessions-as-contract-talks-loom/http://www.dailyfinance.com/2011/03/17/uaw-seeks-to-regain-concessions-as-contract-talks-loom/http://www.dailyfinance.com/2011/03/17/uaw-seeks-to-regain-concessions-as-contract-talks-loom/#commentsFiled under: , , , , , ,

Delegates from the United Auto Workers (UAW) will gather next week in Detroit, as the union works out its strategy to negotiate with domestic automakers for a new four-year contract. The current pact expires in September.

With auto sales firmly rebounding, the UAW is eager to win back the concessions it granted General Motors (GM), Ford Motor (F) and Chrysler over the past decade -- in an effort to help the Detroit Three better compete against increased overseas competition and combat eroding market share.

Wanting a Share of the Profits

The union's president, Bob King, elected last June, says union workers deserve a share of the profits from the car makers, now that industry is slowly recovering from the effects of the financial crisis and subsequent recession.

UAW members have given $7,000 to $30,000 each in concessions since 2005, King says. "All the sacrifices that our members made to turn these companies around were part of the process that's really led to this amazing turnaround," the union leader said in an interview earlier this year with Bloomberg News. "We want our membership to share in a very meaningful way in the upside of these companies."

This Year's Negotiations Will Be Different

Last year, both Ford and GM both posted their biggest profits in more than a decade.And though still unprofitable, Chrysler Group is on much stronger financial footing than it was just a few months ago.

Several factors, not the least of which are GM and Ford's new-found profitability, will make this year's negotiations different from previous years. For one, the Detroit Free Press notes, the union won't be negotiating nearly identical agreements with all three automakers.

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Ford renegotiated contract modifications in 2009, as it sought to trim more than $500 million in annual costs. GM and Chrysler were also granted concessions as part of the companies' government-backed bankruptcies later that year. They included a clause that bars workers from striking over wages and benefits until 2015.

Union workers also agreed to a two-tier wage scale, that allows newly hired workers to paid about $14 an hour, or about half the amount earned by workers with more seniority.

King, 64, also has his sights set on organizing factories in Southern states run by foreign-based automakers, including Toyota Motor (TM) and Daimler, parent of Mercedes-Benz. The union president says he also expects to organize at least one non-union automaker this year.

Unions Back in the Public Spotlight

The UAW's three-day meeting, which begins on Tuesday, comes on the heels of weeks of protests by public-sector workers in Wisconsin, Ohio and other states, where Republican legislators have sought to limit collective-bargaining rights.

The lawmakers have argued the concessions are necessary to close budget shortfalls. But they have apparently lost the public relations battle, leading to more favorable views of union workers. Voters in Wisconsin, upset by efforts led by Gov. Scott Walker to strip state workers of their collective-bargaining rights, are gaining momentum in an effort to recall Walker along with some members of the state Assembly and Senate.

In Ohio, a recent poll showed voters backed state workers' right to collective bargaining, with 65% of them saying public-sector workers should keep the same rights they have now. The poll also showed that newly elected Gov. John Kasich, a Republican, wouldn't win a rematch against his Democratic opponent, Ted Strickland.

Rejecting 'Business as Usual'

The fallout from such much-publicized fights will likely embolden UAW members at next week's meeting to take stronger stands in winning back concessions from automakers -- and take a tougher stance with private and public employers.

For some, the effort has already begun.

"We must reject a 'business as usual' convention," union activists wrote in a recent letter to the UAW, "and use this important gathering to unite across every sector of our union in defense of our collective bargaining rights."


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]]>autoauto bailoutauto industryauto manufacturersautomakersAutomobile manufacturingautomotive industrycarchryslerdetroitfordgeneral motorsgmtarptransporationTroubled Asset Relief ProgramtruckunionvehicleDavid ScheppThu, 17 Mar 2011 15:00:00 ESTSummer Job Prospects for Teens See Few Gains from Last Yearhttp://www.dailyfinance.com/2011/03/17/summer-job-prospects-for-teens-see-few-gains-from-last-year/http://www.dailyfinance.com/2011/03/17/summer-job-prospects-for-teens-see-few-gains-from-last-year/http://www.dailyfinance.com/2011/03/17/summer-job-prospects-for-teens-see-few-gains-from-last-year/#commentsFiled under: , ,

Teens looking to find seasonal employment aren't likely to find landing that job is any easier this summer than it was a year ago, when teen hiring hit historic lows, a new report shows.

Lackluster improvements in the labor market, combined with cutbacks in government spending at local, state and federal levels, will make finding a summer job this year as challenging as it was in 2010, according to the latest annual teen summer outlook, released Thursday by job-services firm Challenger, Gray & Christmas.

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Last year, teenage job seekers experienced the weakest seasonal job market in decades. Data from the Bureau of Labor Statistics show that from May through July 2010, employment among 16 to 19 year olds increased by just 960,000 jobs, the lowest level since 1949. Further, teen employment last year in July, considered the peak month for teen employment, was at its lowest level since 1959.

"Any teen hiring gains achieved in the slowly improving private sector could be offset by losses in the public sector, where teenagers often find summer employment as camp counselors, lifeguards, office assistants, laborers and clerks," says Challenger CEO John Challenger.

One city targeting teen jobs for cuts is Chicago, where Challenger's firm is based. The city said this week it is reducing the number of summer jobs by 22% because of cuts in federal stimulus money.

Beyond fiscal woes, gas prices, should they continue on their upward trajectory, are expected to result in less teen hiring by amusement parks, landscapers and other businesses that are hit hard when energy costs soar.

Still, Challenger says, not all is lost. He notes, for example, Chicago is still looking to offer 14,000 jobs to teens this summer, despite its cuts.

Stuck in Low Gear

"Even at its worst, employment among teenagers experienced a net gain of nearly 1 million jobs last year," he says. "But in the current environment it will be more important than ever for teens to begin their summer job searches early."

The expected slack in teen summer employment is just one more bit of news that shows the nation's job-creation engine is stuck in low gear. A poll released Thursday by Gallup showed the U.S. unemployment rate stood at 10.2% in mid-March, that's 1.3 percentage points higher than the 8.9% rate calculated by the Labor Department in February.

Gallup says the gap between its unemployment number and that of the federal government can be explained in part by the way in which the Labor Department calculates its numbers, adjusting them for seasonal variations in hiring. That's something that Gallup doesn't do.

Further, the polling group says, its unemployment rate is more up-to-date. Gallup's mid-March data include jobless figures for much of March, whereas the government's latest unemployment rate is based on the employment situation in mid-February.

Most importantly, a key reason the federal government's unemployment rate is dropping has to do with the so-called participation rate, the percentage of working-age Americans counted as being in the workforce. In February, the Labor Department recorded its lowest participation rate since 1984.

In essence, Gallup says, the low participation rate suggests that the unemployment rate as calculated by the government is falling because of a rise in the number of discouraged workers who have stopped looking for work -- not because they are getting new jobs.



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]]>careerchallengerChallenger Gray Christmaschicagoeconomyemployeremploymentjob creationjobless recoveryjobsjohn challengerlaborlabor marketseasonal employmentsummer jobsteen employmentteen jobsteenage workforceteensunemploymentDavid ScheppThu, 17 Mar 2011 13:00:00 ESTToyota to Keep Japanese Plants Idle Into Next Weekhttp://www.dailyfinance.com/2011/03/16/toyota-japan-earthquake/http://www.dailyfinance.com/2011/03/16/toyota-japan-earthquake/http://www.dailyfinance.com/2011/03/16/toyota-japan-earthquake/#commentsFiled under: , , , ,

Toyota Motor (TM) said Wednesday it has extended its halt on vehicle production at its plants in Japan through March 22, as the country continues to reel from the devastation of last week's massive 9.0 earthquake and ensuing tsunami.

A decision on when vehicle production will resume in Japan has yet to be made, Toyota said in a written statement. The disaster damaged nuclear power plants north of Tokyo and is believed to have killed at least 10,000 people.

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The company said it will resume replacement parts production for vehicles already on the road beginning Thursday. Further, the world's largest automaker said it plans to restart production of parts for its plants overseas on Monday.

Earlier in the week, Toyota said it would halt Japanese production through March 16. But the severity of the destruction caused by the quake and tsunami has strained relief efforts in the northeast region of the country, where the damage is most severe.

The halt in production comes at a difficult time for Toyota, which has seen its sales fall in the U.S., following massive recalls of its vehicles that began in late 2009 and have continued into this year.

Toyota stands to lose $73 million a day as long as its Japanese plants remain idle. Further, a rise in the value of the yen has made it more expensive for Japanese manufacturers to sell their goods overseas, putting a pinch on profits, including those at Toyota.

"The direction of the Japanese yen over the next three to six months as a result of this catastrophe will also affect the profitability of Japanese automakers," according to a report by Fitch Ratings, cited by the Reuters news agency.

Toyota's largest domestic rival, Nissan Motor (NSANY), said it would restart two plants on Thursday and Friday, but production beyond that remained uncertain, Reuters said. Other plants would take longer to get back on line.

Japan's third largest automaker, Honda Motor (HMC), has also idled plants, according to Reuters. On Wednesday the company reiterated its plans to suspend all production in Japan until at least Sunday.


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]]>autoauto industryauto manufacturersauto manufacturingauto productionautomakersautomobileautomobile productioncarhondaJapanjapan earthquakejapanesemeltdownnatural disastersnissannuclear powertoyotatransportationtrucktsunamivehiclevehicle productionDavid ScheppWed, 16 Mar 2011 09:40:00 EST