Cree expects to add 275 North Carolina jobs during 2009 to serve the expansion of LED manufacturing capacity and other staffing needs at its Durham, N.C., facility. Cree anticipates creating an additional 300 jobs by the end of 2012.
"Green jobs are a cornerstone of my vision for building a 21st century global economy in North Carolina," Gov. Bev Perdue said. "This job announcement fits perfectly with my plan to grow a world-leading green economy in North Carolina that turns green into gold for decades to come."
Cree has also begun manufacturing and assembling LED lighting products with Flextronics in Mecklenburg County, N.C. Initial products made in this facility are the ENERGY STAR(R)-qualified LR6 recessed LED downlight and award-winning LR24 LED troffer replacement.
"We are seeing tremendous growth for LED lighting," said Cree CEO Chuck Swoboda. "Energy-efficient lighting has its roots right here in North Carolina, and Cree is proud to be bringing more green jobs to our state."
Cree's industry-leading line of LED lights, including recessed downlights and troffer replacements, began North Carolina production in August 2009.
About Cree
Cree is leading the LED lighting revolution and setting the stage to obsolete the incandescent light bulb through the use of energy-efficient, environmentally friendly LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting, and semiconductor solutions for backlighting, wireless and power applications.
The Cree, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3529
Cree's product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and radio-frequency/wireless devices. Cree solutions are driving improvements in applications such as general illumination, electronic signs and signals, variable-speed motors and wireless communications.
Left unites for Super City job
The left will unite and field only one Super City mayoral candidate, giving Len Brown first chance to go for the top job ahead of rival Mike Lee.
Mr Lee has indicated he will not join the race and split the vote if Mr Brown's campaign gained traction before next year's election.
The scenario would set up what Labour insiders call their "dream team" of the pair working as mayor and deputy, with Mr Brown's wide appeal complemented by Mr Lee's technocratic grunt.
Mr Lee told the Labour conference: "I am absolutely confident there will only be one left-wing candidate".
He made the comment after being asked if the left would have the discipline to field only one candidate.
Mr Lee said this did not mean he was standing aside for Mr Brown.
Labour insiders said Mr Lee was implying that he would not enter the race if Mr Brown was doing well, but with the election still a year away did not want to rule himself out.
Insiders say Mr Lee could run for one of the ward seats, with an agreement that if he were elected Mr Brown would appoint him deputy mayor.
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Mr Lee is chairman of the Auckland Regional Council, and Mr Brown is Mayor of Manukau City.
Mr Lee has indicated he will not join the race and split the vote if Mr Brown's campaign gained traction before next year's election.
The scenario would set up what Labour insiders call their "dream team" of the pair working as mayor and deputy, with Mr Brown's wide appeal complemented by Mr Lee's technocratic grunt.
Mr Lee told the Labour conference: "I am absolutely confident there will only be one left-wing candidate".
He made the comment after being asked if the left would have the discipline to field only one candidate.
Mr Lee said this did not mean he was standing aside for Mr Brown.
Labour insiders said Mr Lee was implying that he would not enter the race if Mr Brown was doing well, but with the election still a year away did not want to rule himself out.
Insiders say Mr Lee could run for one of the ward seats, with an agreement that if he were elected Mr Brown would appoint him deputy mayor.
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www.pavlovich.co.nz
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Mr Lee is chairman of the Auckland Regional Council, and Mr Brown is Mayor of Manukau City.
PAL union official to stop attending board meetings
LABOR PROBLEMS are threatening to complicate flag carrier Philippine Airlines’ (PAL) move to cut costs and streamline operations amid financial difficulties, with rank-and-file workers protesting supposed plans to outsource jobs and flight attendants playing hardball in collective bargaining talks.
The head of the PAL Employees’ Association (PALEA) filed an indefinite leave of absence from the airline board last August 31, protesting management moves that workers claim could displace thousands.
In a letter addressed to PAL President Jaime J. Bautista, PALEA officials said their president, Edgardo C. Oredina, would not be attending board meetings "until further notice."
"While we greatly acknowledge the importance of labor representation in the PAL board, the current directions taken by the PAL management will likely compromise the integrity of the [union] ... and [will] adversely have [an] impact on the PALEA and may result in loss of jobs," the letter, dated Aug. 31, read.
It was signed by all PALEA officers and was received by the office of Mr. Bautista last Sept. 4.
The union claims PAL management has been moving to outsource and spin-off a number of services, which could affect reservation clerks, maintenance crew, caterers, cargo handlers and load controllers.
PAL has more than 8,000 employees, half of whom belong to the rank-and-file union.
Airline officials could not be reached for comment.
"We deeply lament these drastic actions by PAL management in arresting the current situation ... While we recognize that indeed the airline industry is much affected by the global financial crisis, we are much saddened that PALEA will bear the brunt of the planned manpower rationalization program," the letter stated.
In an interview, Mr. Oredina said the spin-off and outsourcing of services was against a collective bargaining agreement, but expressed optimism that PALEA and the PAL management would be able to resolve the issue when they meet this Friday.
"The outsourcing and spin-off is unacceptable to us. We are going to present [options] to the PAL management if it is really in a dire financial need," he said.
Mr. Oredina said PALEA members were open to pay cuts through job rotations to reduce working hours. If a spinoff of operations was inevitable, the new management should absorb the employees to be affected and give them higher salaries while at the same retaining existing benefits, he said.
"Those are the best offers we can [give]," he said, adding that PALEA was prepared to go to the Department of Labor and Employment should the airline prove obstinate.
PAL was put in a similar situation more than a decade ago at the height of the Asian financial crisis. Suffering from financial woes, PAL was forced to cut flights and retrench thousands of employees.
Some of the job cuts involving over a thousand flight attendants were later ruled illegal by the Supreme Court, which ordered PAL to pay the employees compensation packages amounting to P2.5 billion.
PAL has appealed the decision while at the same time offering to settle the case with the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) out of court.
FASAP is said to have rejected management’s P35-million offer. The high court is expected to come out with a final ruling this month.
Late last month, FASAP issued a statement hitting PAL management for using heavy losses as an excuse to avoid obligations to workers. It said two-year-old collective bargaining talks "have turned sour."
"Sadly, despite the bitter lessons of the past, despite undergoing rehabilitation for eight years, PAL seems to once again sliding back to its old anti-labor ways," the FASAP statement said. "Why should the cabin crew pay for the company’s bungled bottomline?"
In 1998, PAL was forced go into receivership in the aftermath of the Asian crisis. It returned to profit in 2000 and was declared in financial health two years ago.
For fiscal year ending March, PAL lost $301.4 million as a result of higher expenses brought about by the cost of operating more flights and last year’s record-high fuel prices.
Revenues went up slightly to $1.6 billion but were not enough to cover operating expenses of $1.9 billion, up from $1.539 billion the previous year. Total liabilities also went up by almost a fifth to $869 million.
Burdened with debt and ballooning costs, the company is now looking at various options, including selling aircraft, reducing flights, and letting go of employees. It is also on lookout for potential white knights who can ease its financial woes. — K. J. R. Liu
The head of the PAL Employees’ Association (PALEA) filed an indefinite leave of absence from the airline board last August 31, protesting management moves that workers claim could displace thousands.
In a letter addressed to PAL President Jaime J. Bautista, PALEA officials said their president, Edgardo C. Oredina, would not be attending board meetings "until further notice."
"While we greatly acknowledge the importance of labor representation in the PAL board, the current directions taken by the PAL management will likely compromise the integrity of the [union] ... and [will] adversely have [an] impact on the PALEA and may result in loss of jobs," the letter, dated Aug. 31, read.
It was signed by all PALEA officers and was received by the office of Mr. Bautista last Sept. 4.
The union claims PAL management has been moving to outsource and spin-off a number of services, which could affect reservation clerks, maintenance crew, caterers, cargo handlers and load controllers.
PAL has more than 8,000 employees, half of whom belong to the rank-and-file union.
Airline officials could not be reached for comment.
"We deeply lament these drastic actions by PAL management in arresting the current situation ... While we recognize that indeed the airline industry is much affected by the global financial crisis, we are much saddened that PALEA will bear the brunt of the planned manpower rationalization program," the letter stated.
In an interview, Mr. Oredina said the spin-off and outsourcing of services was against a collective bargaining agreement, but expressed optimism that PALEA and the PAL management would be able to resolve the issue when they meet this Friday.
"The outsourcing and spin-off is unacceptable to us. We are going to present [options] to the PAL management if it is really in a dire financial need," he said.
Mr. Oredina said PALEA members were open to pay cuts through job rotations to reduce working hours. If a spinoff of operations was inevitable, the new management should absorb the employees to be affected and give them higher salaries while at the same retaining existing benefits, he said.
"Those are the best offers we can [give]," he said, adding that PALEA was prepared to go to the Department of Labor and Employment should the airline prove obstinate.
PAL was put in a similar situation more than a decade ago at the height of the Asian financial crisis. Suffering from financial woes, PAL was forced to cut flights and retrench thousands of employees.
Some of the job cuts involving over a thousand flight attendants were later ruled illegal by the Supreme Court, which ordered PAL to pay the employees compensation packages amounting to P2.5 billion.
PAL has appealed the decision while at the same time offering to settle the case with the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) out of court.
FASAP is said to have rejected management’s P35-million offer. The high court is expected to come out with a final ruling this month.
Late last month, FASAP issued a statement hitting PAL management for using heavy losses as an excuse to avoid obligations to workers. It said two-year-old collective bargaining talks "have turned sour."
"Sadly, despite the bitter lessons of the past, despite undergoing rehabilitation for eight years, PAL seems to once again sliding back to its old anti-labor ways," the FASAP statement said. "Why should the cabin crew pay for the company’s bungled bottomline?"
In 1998, PAL was forced go into receivership in the aftermath of the Asian crisis. It returned to profit in 2000 and was declared in financial health two years ago.
For fiscal year ending March, PAL lost $301.4 million as a result of higher expenses brought about by the cost of operating more flights and last year’s record-high fuel prices.
Revenues went up slightly to $1.6 billion but were not enough to cover operating expenses of $1.9 billion, up from $1.539 billion the previous year. Total liabilities also went up by almost a fifth to $869 million.
Burdened with debt and ballooning costs, the company is now looking at various options, including selling aircraft, reducing flights, and letting go of employees. It is also on lookout for potential white knights who can ease its financial woes. — K. J. R. Liu
Election trouble brewing for House Dems in 2010
Despite sweeping Democratic successes in the past two national elections, continuing job losses and President Barack Obama's slipping support could lead to double-digit losses for the party in next year's congressional races and may even threaten their House control.
Fifty-four new Democrats were swept into the House in 2006 and 2008, helping the party claim a decisive majority as voters soured on a Republican president and embraced Obama's message of hope and change. Many of the new Democrats are in districts carried by Republican John McCain in last year's presidential contest; others are in traditional swing districts that have proved tough for either party to hold.
From New Hampshire to Nevada, House Democrats also will be forced to defend votes on Obama's $787 billion economic recovery package and on energy legislation viewed by many as a job killer in an already weak economy.
Add to that the absence of Obama from the top of the ticket, which could reduce turnout among blacks, liberals and young people, and the likelihood of a highly motivated GOP base confused by the president's proposed health care plan and angry at what they consider reckless spending and high debt.
Taken together, it could be the most toxic environment for Democrats since 1994, when the party lost 34 House incumbents and 54 seats altogether. Democrats currently have a 256-178 edge in the House, with one vacancy. Republicans would have to pick up 40 seats to regain control.
"When you have big sweeps as Democrats did in 2006 and 2008, inevitably some weak candidates get elected. And when the environment gets even moderately challenging, a number of them are going to lose," said Jack Pitney, a political science professor at Claremont McKenna College in California.
Since the mid-19th century, the party that controls the White House has lost seats in virtually every midterm election. The exceptions were in 1934, when President Franklin D. Roosevelt navigated the Great Depression, and in 2002, after the attacks of Sept. 11, 2001, strengthened George W. Bush's image as a leader.
With history as a guide, Rep. Chris Van Hollen, D-Md., who heads the party's House campaign committee, said he has warned colleagues to be prepared for an exceptionally challenging environment going into 2010.
But Van Hollen said voters will make their choices on the strength of the national economy and will reward Democrats for working aggressively to improve it.
"We passed an economic recovery bill with zero help from Republican colleagues," he said. "I think voters will see that and will ask themselves, 'Who was there to get the economy moving again, and who was standing in the way?'"
Democrats have gotten off to a much faster start than Republicans in fundraising for 2010. The Democratic Congressional Campaign Committee had $10.2 million in the bank at the end of July, with debts of $5.3 million. The National Republican Congressional Committee had just $4 million in cash and owed $2.75 million.
The economy poses the biggest problem for Democrats, with job losses of 2.4 million nationwide since Obama took office. Despite recent signs the country is pulling out of the recession, the unemployment rate in 15 states still was in double digits in July, led by Michigan at 15 percent.
Democrats must defend as many as 60 marginal seats next year, as opposed to about 40 for Republicans. Among those, about 27 Democratic and just 13 Republican seats are seen as especially ripe for a party switch.
Some involve incumbents stepping down to run for higher office.
For example, Rep. Joe Sestak, D-Penn., is mounting a primary challenge to Sen. Arlen Specter. Sestack's seat, until then safely Democratic, now becomes a top GOP target. The same goes for Louisiana Rep. Charlie Melancon, a Democrat in a GOP-leaning district who also is seeking a Senate seat.
But Republicans are on the losing side of that equation as well. Two Republicans in heavily Democratic districts — Reps. Mark Kirk of Illinois and Joe Gerlach of Pennsylvania — are vacating their seats to run for Senate and governor, respectively.
At least one Republican is considered extremely vulnerable: Joseph Cao of Louisiana, who defeated Democrat William Jefferson after the nine-term incumbent was indicted on corruption charges. The district, which includes most of New Orleans, is considered one of the most Democratic in the country.
Beyond that, most of the closest races involve Democrats who rode the Obama tide in 2008.
They include at least four in Ohio, a perennial presidential swing state that has been battered for years by a persistently weak economy. Two represent bellwether areas: Rep. Mary Jo Kilroy, whose district covers most of Columbus and its suburbs, and Rep. Steve Driehaus, whose district includes much of Cincinnati and its suburbs.
Each won with the help of a strong showing among Obama supporters, and each faces face a rematch with the candidate who narrowly lost last year.
"I don't know if Kilroy or Driehaus have any particular problems, but we have a bad economy, the president's popularity has gone down, and conservatives are aroused and angry about government spending, cap and trade and the health care plan," said John Green, a political science professor at the University of Akron.
Indeed, the "cap and trade" bill that narrowly passed the House last spring is creating headaches for several Democrats. The legislation, which would cap carbon emissions and tax industries that exceed the cap as a way to reduce global warming, is largely unpopular in areas of the country where jobs rely on oil, gas or coal production.
One Democrat most affected is New Mexico Democrat Harry Teague. His district, which McCain carried last year, is one of the largest oil and gas producing areas in the country, and Teague has faced angry crowds back home ever since voting yes.
Teague will face Republican Steve Pearce, who held the seat for three terms before giving it up to run unsuccessfully for the Senate last year.
Without Obama on the ticket, a lower predicted black turnout in 2010 could also affect Democrats in several tight races in the South. These include Reps. Bobby Bright and Parker Griffith of Alabama, Travis Childers of Mississippi, and Tom Perriello of Virginia, who won by just 745 votes last year in a district that is 24 percent black.
Concerns about Obama's health care plan and the mounting federal debt could ensnare two first-term Florida Democrats, Alan Grayson and Suzanne Kosmas. Both represent districts along the state's competitive I-4 corridor, which is heavily populated by independent voters and retirees. Polls show Obama has lost ground among both of those demographic groups nationwide.
Fifty-four new Democrats were swept into the House in 2006 and 2008, helping the party claim a decisive majority as voters soured on a Republican president and embraced Obama's message of hope and change. Many of the new Democrats are in districts carried by Republican John McCain in last year's presidential contest; others are in traditional swing districts that have proved tough for either party to hold.
From New Hampshire to Nevada, House Democrats also will be forced to defend votes on Obama's $787 billion economic recovery package and on energy legislation viewed by many as a job killer in an already weak economy.
Add to that the absence of Obama from the top of the ticket, which could reduce turnout among blacks, liberals and young people, and the likelihood of a highly motivated GOP base confused by the president's proposed health care plan and angry at what they consider reckless spending and high debt.
Taken together, it could be the most toxic environment for Democrats since 1994, when the party lost 34 House incumbents and 54 seats altogether. Democrats currently have a 256-178 edge in the House, with one vacancy. Republicans would have to pick up 40 seats to regain control.
"When you have big sweeps as Democrats did in 2006 and 2008, inevitably some weak candidates get elected. And when the environment gets even moderately challenging, a number of them are going to lose," said Jack Pitney, a political science professor at Claremont McKenna College in California.
Since the mid-19th century, the party that controls the White House has lost seats in virtually every midterm election. The exceptions were in 1934, when President Franklin D. Roosevelt navigated the Great Depression, and in 2002, after the attacks of Sept. 11, 2001, strengthened George W. Bush's image as a leader.
With history as a guide, Rep. Chris Van Hollen, D-Md., who heads the party's House campaign committee, said he has warned colleagues to be prepared for an exceptionally challenging environment going into 2010.
But Van Hollen said voters will make their choices on the strength of the national economy and will reward Democrats for working aggressively to improve it.
"We passed an economic recovery bill with zero help from Republican colleagues," he said. "I think voters will see that and will ask themselves, 'Who was there to get the economy moving again, and who was standing in the way?'"
Democrats have gotten off to a much faster start than Republicans in fundraising for 2010. The Democratic Congressional Campaign Committee had $10.2 million in the bank at the end of July, with debts of $5.3 million. The National Republican Congressional Committee had just $4 million in cash and owed $2.75 million.
The economy poses the biggest problem for Democrats, with job losses of 2.4 million nationwide since Obama took office. Despite recent signs the country is pulling out of the recession, the unemployment rate in 15 states still was in double digits in July, led by Michigan at 15 percent.
Democrats must defend as many as 60 marginal seats next year, as opposed to about 40 for Republicans. Among those, about 27 Democratic and just 13 Republican seats are seen as especially ripe for a party switch.
Some involve incumbents stepping down to run for higher office.
For example, Rep. Joe Sestak, D-Penn., is mounting a primary challenge to Sen. Arlen Specter. Sestack's seat, until then safely Democratic, now becomes a top GOP target. The same goes for Louisiana Rep. Charlie Melancon, a Democrat in a GOP-leaning district who also is seeking a Senate seat.
But Republicans are on the losing side of that equation as well. Two Republicans in heavily Democratic districts — Reps. Mark Kirk of Illinois and Joe Gerlach of Pennsylvania — are vacating their seats to run for Senate and governor, respectively.
At least one Republican is considered extremely vulnerable: Joseph Cao of Louisiana, who defeated Democrat William Jefferson after the nine-term incumbent was indicted on corruption charges. The district, which includes most of New Orleans, is considered one of the most Democratic in the country.
Beyond that, most of the closest races involve Democrats who rode the Obama tide in 2008.
They include at least four in Ohio, a perennial presidential swing state that has been battered for years by a persistently weak economy. Two represent bellwether areas: Rep. Mary Jo Kilroy, whose district covers most of Columbus and its suburbs, and Rep. Steve Driehaus, whose district includes much of Cincinnati and its suburbs.
Each won with the help of a strong showing among Obama supporters, and each faces face a rematch with the candidate who narrowly lost last year.
"I don't know if Kilroy or Driehaus have any particular problems, but we have a bad economy, the president's popularity has gone down, and conservatives are aroused and angry about government spending, cap and trade and the health care plan," said John Green, a political science professor at the University of Akron.
Indeed, the "cap and trade" bill that narrowly passed the House last spring is creating headaches for several Democrats. The legislation, which would cap carbon emissions and tax industries that exceed the cap as a way to reduce global warming, is largely unpopular in areas of the country where jobs rely on oil, gas or coal production.
One Democrat most affected is New Mexico Democrat Harry Teague. His district, which McCain carried last year, is one of the largest oil and gas producing areas in the country, and Teague has faced angry crowds back home ever since voting yes.
Teague will face Republican Steve Pearce, who held the seat for three terms before giving it up to run unsuccessfully for the Senate last year.
Without Obama on the ticket, a lower predicted black turnout in 2010 could also affect Democrats in several tight races in the South. These include Reps. Bobby Bright and Parker Griffith of Alabama, Travis Childers of Mississippi, and Tom Perriello of Virginia, who won by just 745 votes last year in a district that is 24 percent black.
Concerns about Obama's health care plan and the mounting federal debt could ensnare two first-term Florida Democrats, Alan Grayson and Suzanne Kosmas. Both represent districts along the state's competitive I-4 corridor, which is heavily populated by independent voters and retirees. Polls show Obama has lost ground among both of those demographic groups nationwide.
Jobs, Plants In Focus as Opel Cuts Loom Under Magna
Moves to save jobs and sites at carmaker Opel when a group led by Canada's Magna International takes control continued on Sunday.
U.S. carmaker General Motors agreed on Thursday to sell a 55 percent stake in its European arm, Opel, to Magna and Russia's Sberbank, finally bowing to Germany's wishes after months of intense talks. Final details are supposed to be worked out by the end of November.
The debate about which countries will suffer most job cuts has put German vows to provide 4.5 billion euros ($6.6 billion) of immediate state aid for the deal under scrutiny across Europe amid fears that workers in Germany may get preferred treatment.
The issue will be debated on Monday in the European Parliament at the request of former Belgian Prime Minister Guy Verhofstadt, now leader of the Liberals who make up the third-largest group in the EU assembly.
EU Competition Commissioner Neelie Kroes and Industry Commissioner Guenter Verheugen will attend.
Magna and its Russian partners had proposed cutting around 10,000 jobs in Europe in a drive to restore the company to profit from 2011. Half of Opel's 50,000 staff work in Germany.
The Frankfurter Allgemeine Sonntagszeitung quoted a Magna spokesman as saying around 10,500 jobs would now go in all, of which 4,500 would be in Germany. Two thirds of the cuts would target assembly-line workers and the rest would be white-collar staff, it said.
Magna would not comment on the report.
Opel chairman Carl-Peter Forster told the Welt am Sonntag weekly that downsizing details still needed to be worked out.
"We tend to ask ourselves now whether we should reduce the size of plants or close more factories," he said.
"In the end we will be able to build around 1.5-1.7 million cars with 40-45,000 staff in Europe. Opel will be better positioned than many rivals after the restructuring."
He said the German plant in Bochum -- often seen as a candidate for closing even though Magna has proposed keeping all four German Opel factories open -- was "absolutely safe".
German magazine Der Spiegel said the European Commission has discovered the Antwerp plant works more efficiently than the Bochum factory in Germany, which would make it hard to justify saving the German plant if Antwerp is closed down.
Questions about state aid and labor leaders' demand for a veto over job cuts pose headaches for Magna and its Russian allies in what has become a politically fraught transaction to build loss-making Opel into a power on global car markets.
Verhofstadt told Reuters he had asked European Commission President Jose Manuel Barroso to ensure the deal did not favor Germany over other countries, such as Belgium and Britain, that also host plants GM plants.
WHO PAYS?
GM's decision to pick Magna over rival RHJ, a Belgian financial investor, was a political boon to Chancellor Angela Merkel ahead of an election on September 27. Merkel had loudly backed Magna's bid and promised state aid to clinch it.
Other countries including Britain, Belgium and Spain are expected to contribute later to the aid, but amounts are not set while they await detail of where plants and jobs will go.
Roland Koch, premier of the German state of Hesse that hosts Opel's main plant and headquarters, told the Frankfurter Allgemeine Sonntagszeitung he expected no problems in Europe.
"I am very confident that the British and Spanish will take part in the financing," he said. "There are no differences at all with other EU countries even though of course everyone has his own interests."
Magna has said it could close the Antwerp plant in Belgium and the Luton factory in Britain if it has no luck in luring new contracts to make use of their capacity.
Opel labor opposes any forced layoffs or plant closures.
Bochum works council head Rainer Einenkel told the Welt am Sonntag paper that Opel workers, set to take a 10 percent stake in the new Opel, would insist on a big say in how things run.
"We are prepared to make a contribution worth more than a billion euros. We are demanding in return a veto right over job cuts, transfer of production or plant closures," he said.
This stance had been agreed with other Opel labor leaders and would be in line with the influence labor has at Germany's Volkswagen, Europe's biggest carmaker, he said.
U.S. carmaker General Motors agreed on Thursday to sell a 55 percent stake in its European arm, Opel, to Magna and Russia's Sberbank
The debate about which countries will suffer most job cuts has put German vows to provide 4.5 billion euros ($6.6 billion) of immediate state aid for the deal under scrutiny across Europe amid fears that workers in Germany may get preferred treatment.
The issue will be debated on Monday in the European Parliament at the request of former Belgian Prime Minister Guy Verhofstadt, now leader of the Liberals who make up the third-largest group in the EU assembly.
EU Competition Commissioner Neelie Kroes and Industry Commissioner Guenter Verheugen will attend.
Magna and its Russian partners had proposed cutting around 10,000 jobs in Europe in a drive to restore the company to profit from 2011. Half of Opel's 50,000 staff work in Germany.
The Frankfurter Allgemeine Sonntagszeitung quoted a Magna spokesman as saying around 10,500 jobs would now go in all, of which 4,500 would be in Germany. Two thirds of the cuts would target assembly-line workers and the rest would be white-collar staff, it said.
Magna would not comment on the report.
Opel chairman Carl-Peter Forster told the Welt am Sonntag weekly that downsizing details still needed to be worked out.
"We tend to ask ourselves now whether we should reduce the size of plants or close more factories," he said.
"In the end we will be able to build around 1.5-1.7 million cars with 40-45,000 staff in Europe. Opel will be better positioned than many rivals after the restructuring."
He said the German plant in Bochum -- often seen as a candidate for closing even though Magna has proposed keeping all four German Opel factories open -- was "absolutely safe".
German magazine Der Spiegel said the European Commission has discovered the Antwerp plant works more efficiently than the Bochum factory in Germany, which would make it hard to justify saving the German plant if Antwerp is closed down.
Questions about state aid and labor leaders' demand for a veto over job cuts pose headaches for Magna and its Russian allies in what has become a politically fraught transaction to build loss-making Opel into a power on global car markets.
Verhofstadt told Reuters he had asked European Commission President Jose Manuel Barroso to ensure the deal did not favor Germany over other countries, such as Belgium and Britain, that also host plants GM plants.
WHO PAYS?
GM's decision to pick Magna over rival RHJ
Other countries including Britain, Belgium and Spain are expected to contribute later to the aid, but amounts are not set while they await detail of where plants and jobs will go.
Roland Koch, premier of the German state of Hesse that hosts Opel's main plant and headquarters, told the Frankfurter Allgemeine Sonntagszeitung he expected no problems in Europe.
"I am very confident that the British and Spanish will take part in the financing," he said. "There are no differences at all with other EU countries even though of course everyone has his own interests."
Magna has said it could close the Antwerp plant in Belgium and the Luton factory in Britain if it has no luck in luring new contracts to make use of their capacity.
Opel labor opposes any forced layoffs or plant closures.
Bochum works council head Rainer Einenkel told the Welt am Sonntag paper that Opel workers, set to take a 10 percent stake in the new Opel, would insist on a big say in how things run.
"We are prepared to make a contribution worth more than a billion euros. We are demanding in return a veto right over job cuts, transfer of production or plant closures," he said.
This stance had been agreed with other Opel labor leaders and would be in line with the influence labor has at Germany's Volkswagen
300,000 Pinoys get jobs from CLEEP
More than 300,000 Filipinos have been given jobs since the government’s emergency employment program was launched in October last year, Malacañang said yesterday.
In his latest twice-a-week report to President Arroyo, Secretary Domingo Panganiban of the National Anti-Poverty Commission, said CLEEP (Comprehensive Livelihood and Emergency Employment Program) had generated 153,887 new jobs or 60.69 percent of the targeted 253,550 jobs for 304,933 individuals or 66.25 percent of the targeted 460,280 individuals nationwide.
The CLEEP used P7.3 billion of the P13.7 billion allocated by national agencies for the program, he added.
Panganiban said the Department of Agriculture generated the most number of new jobs at 89,518, followed by the Department of Environment and Natural Resources at 65,377.
“The DA has so far been the biggest investor, obligating more than P5 million to the effort, followed by the Department of Public Works and Highways with P838 million,” he said.
In a statement, Malacañang said at the height of the global economic slump, Mrs. Arroyo assigned each cabinet secretary as steward to a specific region to ensure and oversee an emergency jobs program.
“Intended beneficiaries were the poor, returning expatriates, workers in the export industry, and out-of-school youths threatened or hurt by reduced or lost income as a consequence of the economic crisis,” read the statement.
“As implemented, CLEEP has created as many jobs as possible in the least possible amount of time for the poor through investments in public works and enterprise development.
“These has included ‘green jobs’ such as forest patrolling, rehabilitating areas prone to or damaged by flood, and replanting denuded areas.”
Malacañang said the new jobs have helped improve the country’s infrastructure, pushed the growth of rural enterprise, improved public health care and food security, and stimulated private investments.
“Through CLEEP, marginalized people have also been able to engage in livelihood activities like raising and dispersing swine and other farm animals, producing fishnets, culturing fish and seaweeds, growing vegetables and operating sari-sari stores,” read the statement.
In his latest twice-a-week report to President Arroyo, Secretary Domingo Panganiban of the National Anti-Poverty Commission, said CLEEP (Comprehensive Livelihood and Emergency Employment Program) had generated 153,887 new jobs or 60.69 percent of the targeted 253,550 jobs for 304,933 individuals or 66.25 percent of the targeted 460,280 individuals nationwide.
The CLEEP used P7.3 billion of the P13.7 billion allocated by national agencies for the program, he added.
Panganiban said the Department of Agriculture generated the most number of new jobs at 89,518, followed by the Department of Environment and Natural Resources at 65,377.
“The DA has so far been the biggest investor, obligating more than P5 million to the effort, followed by the Department of Public Works and Highways with P838 million,” he said.
In a statement, Malacañang said at the height of the global economic slump, Mrs. Arroyo assigned each cabinet secretary as steward to a specific region to ensure and oversee an emergency jobs program.
“Intended beneficiaries were the poor, returning expatriates, workers in the export industry, and out-of-school youths threatened or hurt by reduced or lost income as a consequence of the economic crisis,” read the statement.
“As implemented, CLEEP has created as many jobs as possible in the least possible amount of time for the poor through investments in public works and enterprise development.
“These has included ‘green jobs’ such as forest patrolling, rehabilitating areas prone to or damaged by flood, and replanting denuded areas.”
Malacañang said the new jobs have helped improve the country’s infrastructure, pushed the growth of rural enterprise, improved public health care and food security, and stimulated private investments.
“Through CLEEP, marginalized people have also been able to engage in livelihood activities like raising and dispersing swine and other farm animals, producing fishnets, culturing fish and seaweeds, growing vegetables and operating sari-sari stores,” read the statement.
Job hunting? This week’s most intriguing offers
Labor Day was fun, but many of us now prefer workdays to days off – especially if we get a few too many extra.
That’s because the US unemployment rate is now creeping uncomfortably close to double-digits. Since we’d like to see that turn around, Monitor staffers search the job listings looking for interesting places to work. The most intriguing jobs we found this week are in Fort Smith, Ark.; Seattle; Long Island, Kan.; Edinburg, Texas; Clinton, Ill.; and Salt Lake City.
Like bugs? Read on.
1. All-purpose cowboy
Employer: Valley Feeds
Wages/salary: Not listed.
Details: Needed for cow/calf work; horses provided, or can bring own. (For more information click here.)
Location: In Long Island, Kan., (pop. 155, median family income $32,321) the library offers children’s books, periodicals, and cake pan rentals.
2. Fish-hatchery technician
Employer: University of Washington
Wages/salary: $11.13 to $14.32 an hour.
Details: Capture and handle adult salmon; prior fish handling experience desired, preferably a student of aquatic and fishery sciences, oceanography, or similar background; must be able to get wet and be covered with fish slime. (For more information click here.)
Location: Seattle (pop. 565,809, median family income $81,355) and Minneapolis were America’s most literate cities in 2008, according to a survey by Central Connecticut State University.
3. Freelance gold designer
Employer: JBSstyle
Wages/salary: $30 to $45 an hour
Details: Bachelor’s degree and minimum of three years of fine jewelry design experience required. (For more information click here.)
Location: N/A
4. Inserter
Employer: Not listed
Wages/salary: Not listed.
Details: Must be able to lift 30 pounds, stand, and bend in loud environment. (For more information click here.)
Location: Fort Smith, Ark., (pop. 85,716, median family income $ 45,466) is the second biggest city in the state.
5. Insect production worker
Employer: USDA Animal and Plant Health Inspection Service
Wages/salary: $14 to $16 an hour
Details: Place insect food and eggs into larval rearing containers; collect emerging adults from emergence traps; chill and measure desired numbers of insects for culture maintenance and shipment of irradiated adults. (For more information click here.)
Location: Edinburg, Texas (pop. 48,465, median family income $30,634) has 40 acres of wetlands and boasts of some of the best bird-watching in the US.
6. Soy data analyst
Employer: Syngenta
Wages/salary: Not listed
Details: Work under direction of Soybean Data Manager; periods of intense work at critical times of year (planting, pollinating, and harvesting). (For more information click here.)
Location: Clinton, Ill., (pop. 7,485, median family income $48,024) is in DeWitt County and is named for DeWitt Clinton, a 19th century governor of New York.
7. Tire buster
Employer: Not listed.
Wages/salary: $9 to $12 an hour
Details: Bust tires, assist mechanics; must be able to lift 50 pounds; bilingual English and Spanish preferred. (For more information click here.)
Location: Salt Lake City (pop. 181,743, median family income $45,140) was originally “Great Salt Lake City.” It was shortened in 1868.
8. Hog buyer
Employer: Southern Minnesota-based company
Wages/salary: $28,000
Details: Must have hog production experience and know appropriate hog handling. (For more information click here.)
Location: Not listed.
That’s because the US unemployment rate is now creeping uncomfortably close to double-digits. Since we’d like to see that turn around, Monitor staffers search the job listings looking for interesting places to work. The most intriguing jobs we found this week are in Fort Smith, Ark.; Seattle; Long Island, Kan.; Edinburg, Texas; Clinton, Ill.; and Salt Lake City.
Like bugs? Read on.
1. All-purpose cowboy
Employer: Valley Feeds
Wages/salary: Not listed.
Details: Needed for cow/calf work; horses provided, or can bring own. (For more information click here.)
Location: In Long Island, Kan., (pop. 155, median family income $32,321) the library offers children’s books, periodicals, and cake pan rentals.
2. Fish-hatchery technician
Employer: University of Washington
Wages/salary: $11.13 to $14.32 an hour.
Details: Capture and handle adult salmon; prior fish handling experience desired, preferably a student of aquatic and fishery sciences, oceanography, or similar background; must be able to get wet and be covered with fish slime. (For more information click here.)
Location: Seattle (pop. 565,809, median family income $81,355) and Minneapolis were America’s most literate cities in 2008, according to a survey by Central Connecticut State University.
3. Freelance gold designer
Employer: JBSstyle
Wages/salary: $30 to $45 an hour
Details: Bachelor’s degree and minimum of three years of fine jewelry design experience required. (For more information click here.)
Location: N/A
4. Inserter
Employer: Not listed
Wages/salary: Not listed.
Details: Must be able to lift 30 pounds, stand, and bend in loud environment. (For more information click here.)
Location: Fort Smith, Ark., (pop. 85,716, median family income $ 45,466) is the second biggest city in the state.
5. Insect production worker
Employer: USDA Animal and Plant Health Inspection Service
Wages/salary: $14 to $16 an hour
Details: Place insect food and eggs into larval rearing containers; collect emerging adults from emergence traps; chill and measure desired numbers of insects for culture maintenance and shipment of irradiated adults. (For more information click here.)
Location: Edinburg, Texas (pop. 48,465, median family income $30,634) has 40 acres of wetlands and boasts of some of the best bird-watching in the US.
6. Soy data analyst
Employer: Syngenta
Wages/salary: Not listed
Details: Work under direction of Soybean Data Manager; periods of intense work at critical times of year (planting, pollinating, and harvesting). (For more information click here.)
Location: Clinton, Ill., (pop. 7,485, median family income $48,024) is in DeWitt County and is named for DeWitt Clinton, a 19th century governor of New York.
7. Tire buster
Employer: Not listed.
Wages/salary: $9 to $12 an hour
Details: Bust tires, assist mechanics; must be able to lift 50 pounds; bilingual English and Spanish preferred. (For more information click here.)
Location: Salt Lake City (pop. 181,743, median family income $45,140) was originally “Great Salt Lake City.” It was shortened in 1868.
8. Hog buyer
Employer: Southern Minnesota-based company
Wages/salary: $28,000
Details: Must have hog production experience and know appropriate hog handling. (For more information click here.)
Location: Not listed.
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