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TV and radio union approves merger plan with SAG

The Associated Press — Sun, 29 Jan 2012 07:06:07 +0000

The Associated Press

LOS ANGELES

The board of directors of the American Federation of Television and Radio Artists has approved a proposed merger with the Screen Actors Guild, a day after SAG's board made the same move.

In a statement, AFTRA says 94 percent of its board voted for the merger Saturday at a videoconference meeting of board members in Los Angeles and New York.

Referendum ballots will now be sent out for a vote by members of both unions. AFTRA leaders say ballots will be mailed in late February and counted in late March.

The merger plan comes after two years of negotiations between the groups to join forces, hoping to gain more leverage in contract negotiations with producers.

AFTRA supported a SAG merger in 1998 and 2003, but the efforts failed.

Suit claims Silicon Valley anti-poaching scheme

The Associated Press — Sat, 28 Jan 2012 17:25:01 +0000

MARCUS WOHLSEN

Associated Press

SAN JOSE, Calif.

In Silicon Valley's white-hot competition for tech talent, programmers can face a daily barrage of calls from recruiters seeking to woo them to rival companies with offers of better pay and perks.

But workers for some of the biggest names in the business claim their phones fell silent because of a conspiracy among their employers. And they claim the world's biggest tech icon was at the center.

A lawsuit filed in federal court in San Jose claims senior executives at Google Inc., Intel Corp., Adobe Systems Inc., Intuit Inc., Lucasfilm Ltd., Pixar and Apple Inc. violated antitrust laws by entering into secret anti-poaching agreements not to hire each other's best workers. In doing so, the suit contends the companies were able to keep wages artificially low by preventing bidding wars for the best employees.

The plaintiffs also claim that company e-mails show Steve Jobs himself sought and orchestrated at least some of the so-called "gentlemen's agreements" while Apple's CEO.

"I believe we have a policy of no recruiting from Apple," then-Google chief executive Eric Schmidt wrote in a 2007 email cited by the plaintiffs. The email was originally furnished to the U.S. Justice Department, which investigated similar allegations in 2010. The same email included a forwarded message from Jobs complaining that Google's recruiting department was trying to lure away an Apple engineer.

"Can you get this stopped and let me know why this is happening?" Schmidt wrote. Google's director of staffing replied that the recruiter "will be terminated within the hour."

The companies' attorneys said the facts even as presented by the plaintiffs show no evidence of a conspiracy.

Rather, they said in court filings that some companies had separate one-to-one pacts among themselves as they worked together on various business ventures.

"The obvious explanation for the existence of these agreements were the collaborations," said Apple defense attorney George Riley, as the two sides squared off Thursday in U.S. District Court in San Jose. Riley told Judge Lucy Koh that such arrangements were common.

The case hinges on a practice described in court documents as "cold-calling." Under the practice, recruiters from one company will call an employee at another company who has the skills the company needs. The practice can lead to bidding wars as workers play the companies off one another to get the highest pay.

Cold-calling, the suit contends, helps workers get a sense of what they're worth in a free market for employment in which all the companies are competing against one another for top employees. When the cold-calling stops, workers lose the knowledge and the leverage they could otherwise use to demand higher pay.

The Justice Department's 2010 investigation included all the same companies except Lucasfilm, and the plaintiffs in some ways mimic the language from the department's original case. The companies settled without admitting any wrongdoing but agreed not to enter into future agreements preventing them from cold-calling each other's employees to recruit them.

Because the Justice Department's case was settled quietly without any public dispute, court records contain little detail about any specific alleged agreements among companies.

Some of those details did come to light, however, in a recent filing by the plaintiffs, which quotes emails they obtained from the companies that had previously been given to the Justice Department.

In a 2005 email describing a purported agreement between former Adobe CEO Bruce Chizen and his then-counterpart at Apple, an Adobe human resources executive wrote: "Bruce and Steve Jobs have an agreement that we are not to solicit ANY Apple employees, and vice versa," according to court documents.

Ex-Palm Inc. CEO Ed Colligan wrote to Jobs in 2007: "Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal," the plaintiffs' filing said.

In internal company communications, Intel CEO and Google board member Paul Otellini described a gentleman's agreement between the two companies: "Let me clarify. We have nothing signed. We have a handshake 'no recruit'" between himself and then-Google CEO Schmidt. "I would not like this broadly known."

Defense attorneys contend the emails are being distorted by the plaintiffs and show nothing beyond legitimate one-to-one agreements. Apple declined to comment.

"Intel disagrees with the allegations contained in the private litigation related to recruiting practices and plans to conduct a vigorous defense," said Sumner Lemon, an Intel spokesman.

Adobe said the company does not comment on pending litigation.

The other companies named in the suit did not immediately respond to requests seeking comment.

Whichever side prevails, the case underscores the high wages talented tech workers can command in Silicon Valley, where the tech industry added thousands of jobs last year. According to federal labor statistics, mid-level tech workers in the region such as computer security specialists, web developers and network architects earn more money than anywhere else in the country, with average annual salaries topping $110,000.

Many of those workers could get thousands more if the case goes their way, lead plaintiff's attorney Joseph Saveri said. Given the potentially tens of thousands of workers affected if the plaintiffs succeed in turning the suit into a class-action case, Saveri said the combined damages for the companies could reach into the hundreds of millions of dollars if decided at trial.

Such penalties would sink many companies. But Apple recently reported cash reserves of more than $97 billion. Google also has billions in cash on hand.

One anti-trust attorney not involved in the case doubts the companies have much to worry about anyway.

Antitrust cases that revolve around hiring practices are difficult to win, said David Balto, a Washington, D.C.-based antitrust lawyer who investigated Microsoft as a staff attorney for the Federal Trade Commission in the 1990s. Among the legal challenges they face is defining who exactly makes up the class of workers harmed by the alleged violations, since people with different jobs have different employment options, he said.

"I don't think anybody at these companies is losing a nanosecond of sleep because of this lawsuit," Balto said.

___

Marcus Wohlsen can be reached on Twitter: http://twitter.com/marcuswohlsen

Some of the tech companies that have gone public

The Associated Press — Fri, 27 Jan 2012 23:56:12 +0000

The Associated Press

Some of the tech companies that have gone public recently:

Demand Media Inc., online content publisher, Jan. 26, 2011

Zipcar Inc., online car rental company, April 14

LinkedIn Corp., online professional network, May 19

Pandora Media Inc., Internet radio company, June 15

Zillow Inc., real estate website, July 20

Groupon Inc., online deals company, Nov. 4

Angie's List Inc., consumer-reviews site, Nov. 17

Jive Software Inc., creator of tools to run social networks for businesses, Dec. 13

Zynga Inc., developer of online games, Dec. 16

Coming Up:

Yelp Inc., online reviews site

Facebook Inc. (expected), social-networking service

Viacom CEO Dauman's pay drops to $43M in 2011

The Associated Press — Fri, 27 Jan 2012 23:54:29 +0000

The Associated Press

NEW YORK

Viacom's Philippe Dauman led the list of America's top-paid CEOs in 2010 with an $84.5 million package, but that included stock bonuses for renewing his contract and he got just half as much in 2011.

Still, an Associated Press tally values Dauman's pay package for 2011 at $43 million.

That's based on figures from a document the company filed Friday with the Securities and Exchange Commission.

Another reason Dauman won't be the highest paid CEO for 2011: Tim Cook was awarded a whopping $378 million package when he replaced the late Steve Jobs at the helm of Apple Inc.

The AP's calculation counts salary, bonuses, perks, stock and options awarded to the executive during the year.

A look at how some IPO stocks have fared

The Associated Press — Fri, 27 Jan 2012 23:43:17 +0000

The Associated Press

Facebook is preparing to file paperwork as early as Wednesday for an initial public offering of stock, according to The Wall Street Journal. Its public debut will be the most anticipated tech IPO since Google went public in August 2004.

Below is a look at how the stocks of some recently public companies are faring. The companies are all loosely Internet-related, though their businesses vary widely.

— Zynga Inc., developer of online games, first day of trading on Dec. 16, 2011

Pricing: $10 per share

First-day close: $9.50, down 5 percent from IPO price

Friday's close: $10.05, up 1 percent from IPO price

Trading range since IPO: $7.97 to $11.50

— Jive Software Inc., creator of tools to run social networks for businesses, first day of trading on Dec. 13

Pricing: $12 per share

First-day close: $15.05, up 25 percent from IPO price

Friday's close: $14.92, up 24 percent from IPO price

Trading range since IPO: $14.18 to $16.86

— Angie's List Inc., consumer-reviews site, first day of trading on Nov. 17

Pricing: $13

First-day close: $16.26, up 25 percent from IPO price

Friday's close: $15.20, up 17 percent from IPO price

Trading range since IPO: $10.77 to $18.75

— Groupon Inc., online deals company, first day of trading on Nov. 4

Pricing: $20

First-day close: $26.11, up 31 percent from IPO price

Friday's close: $20.04, relatively flat

Trading range since IPO: $14.85 to $31.14

— Zillow Inc., real estate website, first day of trading on July 20

Pricing: $20

First-day close: $35.77, up 79 percent from IPO price

Friday's close: $29.35, up 47 percent from IPO price

Trading range since IPO: $23.43 to $60

— Pandora Media Inc., Internet radio company, first day of trading on June 15

Pricing: $16

First-day close: $17.42, up 9 percent from IPO price

Friday's close: $13.91, down 13 percent from IPO price

Trading range since IPO: $9.15 to $26

— LinkedIn Corp., online professional network, first day of trading on May 19

Pricing: $45

First-day close: $94.25, more than double IPO price

Friday's close: $76.64, up 70 percent from IPO price

Trading range since IPO: $60.14 to $122.70

— Zipcar Inc., online car rental company, first day of trading on April 14

Pricing: $18

First-day close: $28, up 56 percent from IPO price

Friday's close: $16.13, down 10 percent from IPO price

Trading range since IPO: $16.50 to $31.50

— Demand Media Inc., online content publisher, first day of trading on Jan. 26

Pricing: $17

First-day close: $22.65, up 33 percent

Friday's close: $6.82, down 60 percent from IPO price

Trading range since IPO: $5.24 to $27.38

Some of the tech companies that have gone public

The Associated Press — Fri, 27 Jan 2012 23:21:33 +0000

The Associated Press

Some of the tech companies that have gone public recently:

Demand Media Inc., online content publisher, Jan. 26, 2011

Zipcar Inc., online car rental company, April 14

LinkedIn Corp., online professional network, May 19

Pandora Media Inc., Internet radio company, June 15

Zillow Inc., real estate website, July 20

Groupon Inc., online deals company, Nov. 4

Angie's List Inc., consumer-reviews site, Nov. 17

Jive Software Inc., creator of tools to run social networks for businesses, Dec. 13

Zynga Inc., developer of online games, Dec. 16

Coming Up:

Yelp Inc., online reviews site

Facebook Inc. (expected), social-networking service

Retirees may find their benefits targeted for cuts

The Associated Press — Fri, 27 Jan 2012 21:59:40 +0000

DAVID PITT

AP Personal Finance Writer

DES MOINES, Iowa

It's a case of broken promises. A growing number of companies are reneging on health insurance and other retirement benefits, leaving retirees scrambling and sometimes uninsured.

In some cases the companies have few options. They cut benefits programs because they're in bankruptcy and must reduce costs to survive. In other cases, however, retirees have to fend for themselves even as corporate profits soar.

It's happening all across the country to the men and women who built cars in Michigan, assembled washing machines in Iowa, rolled out aluminum in West Virginia and fixed faulty telephone lines in North Carolina.

Retirees from General Motors, Maytag, AT&T, Chrysler, and Delta Airlines to name a few have seen benefits reduced or eliminated in recent years.

"It's very devastating to retirees," said Ed Beltram, spokesman for the National Retiree Legislative Network, a Washington-based retiree advocacy group. "Many of them have counted on the promises from their companies for a secure retirement and suddenly they find themselves in dire financial straits."

The advocacy group is pushing for federal legislation that protects retiree benefits. For example, it would like for retirees to be given automatic status on bankruptcy committees — which are set up to help guide the bankruptcy court through the reorganization process. A company's largest creditors usually sit on the committee and a seat at the table would give retirees a stronger voice.

The most recent case in point is Eastman Kodak Co. The iconic company filed for bankruptcy protection last week. Now its employees and retirees can only stand by and watch as the company works its way through bankruptcy protection and hope that their benefits aren't severely cut.

Kodak's payroll, now around 19,000, was 70,000 a decade ago and exceeded 145,000 at its peak in the late 1980s.

"It's a much smaller company. It's pretty clear that retiree costs are going to be in the bull's-eye," said Bob Volpe, who retired in 1998 after 32 years.

Over the past decade Kodak tried to retool itself to keep up with changing technology that saw digital photography nearly eliminate the need for film. In the Jan. 19 bankruptcy filing the company said its efforts have been undermined by a sluggish economy and high restructuring costs.

Many Kodak retirees have already seen dental and life insurance benefits cut in the last few years. Currently, the company pays for a portion of retiree health care insurance premiums at a cost of about $146 million a year. In a letter to retirees that accompanied the bankruptcy filing, management made it clear that retirees should expect changes.

The company's pension, at least for now, is not at risk. It covers about 63,000 retirees, dependents and beneficiaries. The Pension Benefits Guarantee Corp. was named this week to the Kodak creditors' committee and has said it will actively participate in the bankruptcy to protect the pension plan.

Although pension plans are afforded a certain level of protection through the PBGC, health care benefits are another matter. And it's not just bankruptcy that leads to retiree benefit cuts. Since the early 1990s retiree health care benefits have been trimmed because new accounting standards began to require companies to report retiree medical benefit obligations on their balance sheets as debt. In part so that they didn't appear over burdened by debt, some companies began cutting or reducing the benefits.

Often labor unions play a central role in fighting cutbacks. However, several federal court cases have upheld the right of companies to cut benefits. The cases frequently focus on whether the language in the union contract explicitly grants the benefits for the life of the worker. Often the language is vague and, when it is, retirees usually lose.

In rural West Virginia more than 400 retirees are fighting to get their health insurance benefits back. Century Aluminum Co. closed an aluminum plant in Ravenswood — about 50 miles north of Charleston — in 2009 citing poor economic conditions and high operating costs. That December retirees received a letter:

"We regret to inform you that your retiree health benefits program will cease on Dec. 31, 2010," it said. "Coverage for medical and prescription drugs will terminate for you and your spouse and covered dependents."

For nearly 50 years the company provided retirees health care. It had been negotiated in union contracts. Retirees say they gave up vacation time, pay increases or other provisions to keep the retirement benefits.

"These benefits weren't a gift," said Karen Gorrell, whose husband, Michael worked at the plant for more than 33 years. They're both in their 60's and don't have health insurance. To buy a policy, they'd have to pay nearly $3,000 a month, more than what they bring in from their pension income and Social Security.

"My husband and I are sitting ducks to lose everything we've worked for all our lives," she said. "The first catastrophic diagnosis and we'll lose everything."

With the help of the United Steelworkers union, the Century Aluminum retirees filed a lawsuit seeking to stop the benefit cuts. But so far they've been unsuccessful. Most recently the case was sent back to the U.S. District Court in West Virginia. The company is seeking dismissal.

Michael Gorrell, who has seen fellow uninsured retirees battle illness and a few die, said if the government and the courts continue to allow companies to back out of retirement promises, there's little hope for workers.

"If the system lets that happen every working man in the U.S. is screwed," he said.

Their situation has spurred Karen Gorrell to become an activist, writing congressmen and legislators, and arranging "Occupy Century" events this month to publicly protest the company's move. She said she's angered that the cuts weren't made because the company was filing bankruptcy or unprofitable.

The company posted a profit of nearly $60 million in 2010 and a profit of $42.4 million for the first nine months of 2011. Those figures include gains of more than $75 million from eliminating the retiree medical benefits, according to documents filed with the Securities and Exchange Commission.

Former CEO Logan Kruger was rewarded for cutting costs at several of the company's plants. In addition to his $875,000 salary in 2010, he was paid more than $1.8 million in bonuses, including rewards for cost savings at Ravenswood.

Century Aluminum did not respond to a request for comment.

Indeed, retirees have reason to be concerned as the economic recovery continues to languish. Hostess Brands Inc., the maker of Wonder Bread and Twinkies, is asking a bankruptcy court to amend union agreements to reduce its pension and medical benefit costs.

The company filed for bankruptcy protection in New York earlier this month. Among the top 40 creditors listed in the bankruptcy filing, 16 are union pension and health benefit plans. Although Hostess emerged from bankruptcy reorganization in February 2009, it said that plan did not adequately address the cost of retirement benefits.

The Teamster's union says Hostess is trying to "bully" its way out of its obligations to employees by using the bankruptcy process.

Currently retirees 65 or older are usually covered by Medicare and some continue to receive benefits from their former employers to buy group insurance to fill gaps in that coverage.

Most hurt when a company cuts back are retirees younger than 65, who must pay for insurance at very high premiums and deductibles.

But, the landscape for securing retiree health care benefits is changing.

In 2014 the government's controversial Affordable Care Act, the much discussed health care reform law, will begin to guarantee coverage for the under 65 group. It sets up exchanges that would enable retirees at that age to buy insurance at much more affordable prices than they pay now.

Poles keep up protests against copyright treaty

The Associated Press — Fri, 27 Jan 2012 21:57:42 +0000

The Associated Press

WARSAW, Poland

Hundreds of Poles have demonstrated in Warsaw against a copyright treaty that Poland signed this week, continuing days of protests over an issue that has sparked social anger.

Just last week most Poles had never heard of the treaty in question, the Anti-Counterfeiting Trade Agreement, or ACTA. Since Sunday it has become the most-discussed problem in the country. It has sparked street protests in many cities nationwide and prompted attacks on government websites that left several paralyzed earlier in the week.

On Friday evening about 1,000 gathered in front of the presidential palace in Warsaw, shouting "Democracy!" and "No to ACTA!"

The agreement aims to protect intellectual property rights. Opponents say it will lead to online censorship.

Emulex shares rise after company turns profit

The Associated Press — Fri, 27 Jan 2012 21:42:12 +0000

The Associated Press

NEW YORK

Shares of Emulex Corp. surged in trading Friday, a day after the data-storage equipment and network equipment maker reported that it reversed a year-ago loss to post a profit in its fiscal second quarter.

THE SPARK: On Thursday, the company said it earned $15 million, or 17 cents per share, in the quarter ended Jan. 1. That compared with a year-ago loss of $41 million, or 47 cents per share, when it took major write-downs.

The company said it would have earned 26 cents per share excluding items such as stock-based compensation expenses.

Revenue rose 13 percent, to $128.7 million.

Analysts surveyed by FactSet had expected adjusted profit of 21 cents per share on revenue of $126.4 million.

The company also said it expects third-quarter adjusted earnings of 17 to 19 cents per share on revenue of $121 million to $125 million. Analysts were expecting 14 cents per share on revenue of $120.5 million.

THE BIG PICTURE: Earlier this month, Emulex said that its second-quarter earnings would be above its earlier guidance as it recovered production after Thailand flooding and overcame supply issues. Thursday's results topped the updated guidance.

THE ANALYSIS: Morgan Keegan analyst Harsh Kumar reiterated his "outperform" rating on Emulex, saying the company is "favorably positioned" to take advantage of Intel Corp.'s Romley launch.

THE SHARES: The shares rose $1.39, or 15 percent, to end at $10.66. That's near the top of their 52-week range of $5.86 to $12.38.

Behind Obama's financial aid 'shopping sheets'

The Associated Press — Fri, 27 Jan 2012 21:31:23 +0000

CANDICE CHOI

AP Personal Finance Writer

NEW YORK

President Barack Obama wants to make it easier to size up the cost of college.

As part of his broad plans to make college more affordable, Obama said Friday that he would push for financial aid "shopping sheets" that make it easier for families to comparison shop between schools.

Federal education officials say the goal is make adoption of the form mandatory for schools to maintain access to federal aid. That would be a powerful incentive, as the federal government issued more than $140 billion in grants and loans last year.

As it stands, officials say the financial aid award letters that schools mail out to students in the spring can be unclear or even misleading. That can result in students signing up for more debt than they realize.

For example, schools usually state an "out of pocket" cost in award letters after subtracting aid such as grants and scholarships. But some schools also subtract loans from the out-of-pocket cost. That's despite the fact that loans actually push up costs because of interest charges.

Schools also may not spell out the type of loans that's included in the aid package, even though the terms on federal and private loans can differ significantly.

To address the issue, the Department of Education and the newly created Consumer Financial Protection Bureau rolled out a model financial aid form in October and asked for the public's comments on how it could be improved. On Friday, the CFPB said feedback indicated the most important figure for students is the amount of debt they would have upon graduation.

The Department of Education was required to develop the model form as part of federal education reforms in 2008. The adoption of such a form has also been widely supported by student advocates.

The push to standardize financial aid award letters comes at a time when students are graduating with more debt than ever before. The Institute for College Access & Success estimates that two-thirds of graduates have student loans, with an average debt of about $24,000.

___

Follow Candice Choi at www.twitter.com/candicechoi

Q&A: How secure are your retiree benefits?

The Associated Press — Fri, 27 Jan 2012 21:13:42 +0000

DAVE CARPENTER

AP Personal Finance Writer

Retiree benefits aren't as secure as they used to be, as auto and airline workers and others have learned in recent years.

Kodak workers are among those about to experience the changes. Their company is expected to make steep cuts to its so-called legacy costs -- health benefits in particular -- in a bankruptcy restructuring. Other companies are doing the same, either in or out of bankruptcy.

The biggest pain is likely to be felt by baby boomers, who are mostly still in the workforce but facing increasing prospects that their employers may freeze their pensions, reduce or eliminate company matches in their 401(k) plans and shrink health benefits.

"Baby boomers would do well to recognize that they're not going to be looking ahead to as comfortable a retirement as their parents had," says Olivia Mitchell, head of the Boettner Center for Pensions and Retirement Security at the University of Pennsylvania's Wharton School. "Their parents had a secure Social Security system, generous Medicare system, defined-benefit pensions and retiree medical benefits."

Traditional pensions are fast vanishing and the other areas all are considered fodder for potential cuts in the years ahead.

But workers who have been retired for 10, 20 or 30 years are feeling it, too, because some also are losing health and life insurance benefits.

With Kodak's much-publicized situation still evolving, here is an overview of key concerns for retirees and near-retirees concerning benefits:

Q: How can a company promise benefits and then renege on them years later? Are there no protections for workers?

A: It's perfectly legal for companies to eliminate benefits that have not yet been earned.

Pensions, medical benefits and even vacations all are considered to be voluntarily provided benefits. It's more common in other countries to have mandatory insurance and vacations, says Rebecca Davis, legal director of the Pension Rights Center in Washington.

So-called anti-cutback rules in the federal tax code offer some protection. They generally prohibit a company from taking away any accrued benefits. But that's not the case with future benefits. And the precedents set by companies since the early 2000s point toward increasing reductions.

Q: How vulnerable are pensions?

A: Pension assets generally are not at risk in a company bankruptcy because pension cash must by law be kept separate from business accounts. But some retirees with higher paying pensions may not get the full amounts.

Pensions offered by private employers are typically secured by the Pension Benefit Guaranty Corp., which takes over failed pension plans to continue paying retirees. But the federal agency caps the benefits it pays out to retirees annually. The maximum for 2012 is $55,841, so if your employer goes under your pension benefit is capped at that amount.

Outside of bankruptcy, the bigger risk for retirees is having their pensions frozen, meaning the amounts handed out in retirement will be thousands of dollars less per year than they were told. "The law gives companies the opportunity to break promises to their workers," says Davis.

And almost no company still offers pensions to new employees. Only 14 percent of private sector workers still had traditional, defined-benefit pensions in 2010, according to the Employee Benefits Research Institute. That's down from 28 percent in 1990.

Q: What benefits are the likeliest to be cut?

A: Health benefits. Unlike with pensions, retiree health care benefits are not protected by law, says Ed Beltram of the nonprofit National Retiree Legislative Network.

Most companies have "reservation of rights" clauses that effectively say they reserve the right to change or eliminate benefits such as health care and life insurance. Hundreds of companies have taken advantage of them to reduce or eliminate those benefits in the past decade.

In bankruptcy, benefits can be reduced or wiped out with a judge's approval.

One typical reduction that particularly hurts retirees is when companies reduce life insurance from a year's salary to $10,000 or less, Beltram says. Retirees who wish to have more life insurance can find it unaffordable or impossible to secure new policies in their 60s, 70s or 80s.

Q: What about company-sponsored 401(k) retirement plans?

A: Your 401(k) or other defined-contribution account, if you have one, is protected by law. The assets in the plan are yours and are managed for you by a service provider hired by your employer.

Many companies froze the matching contributions to 401(k)s after the financial meltdown of 2008. The good news: In one recent study by business consultant Towers Watson, 75 percent of the mid- to large-sized companies that had lowered or suspended their 401(k) contributions have resumed them -- three-quarters at the same level as before.

The big 401(k) danger for retirees and workers alike is having their accounts heavily dependent on their employer's stock. If the company gets into financial trouble or files for bankruptcy, the collapse of the stock can devastate savings. The prime example: Enron Corp. Enron employees held nearly 60 percent of their retirement assets in company stock when the shares went from $90 to nothing.

____

Personal Finance Writer Dave Carpenter can be reached at http://twitter.com/scribblerdave .

Business events scheduled for the coming month

The Associated Press — Fri, 27 Jan 2012 20:22:49 +0000

The Associated Press

WEDNESDAY, Feb. 1
WASHINGTON — Institute for Supply Management releases its manufacturing index for January, 10 a.m.; Commerce Department releases construction spending for December, 10 a.m.; House Budget Committee hearing on the budget and the economy, with Douglas Elmendorf, director of the Congressional Budget Office.; Senate Budget Committee hearing on the outlook for countries that share the euro as their currency.
DETROIT — Automakers release vehicle sales for January.
THURSDAY, Feb. 2
WASHINGTON — Labor Department releases weekly jobless claims, 8:30 a.m.; Freddie Mac, the mortgage company, releases weekly mortgage rates, 10 a.m.; Labor Department releases fourth-quarter productivity data, 8:30 a.m.; Federal Reserve chairman Ben Bernanke testifies before the House Budget Committee about the state of the economy.; House Financial Services subcommittee hearing on the collapse of the MF Global financial firm.
NEW YORK — Selected chain retailers release January sales comparisons.
BEIJING — German Chancellor Dr. Angela Merkel speaks on international economic and financial policy.
FRIDAY, Feb. 3
WASHINGTON — Labor Department releases employment data for January, 8:30 a.m.; Institute for Supply Management releases its service sector index for January, 10 a.m.; Commerce Department releases factory orders for December, 10 a.m.
MONDAY, Feb. 6
TUESDAY, Feb. 7
WASHINGTON — Labor Department releases job openings and labor turnover survey for December, 10 a.m.; Federal Reserve releases consumer credit data for December, 3 p.m.
WEDNESDAY, Feb. 8
THURSDAY, Feb. 9
WASHINGTON — Labor Department releases weekly jobless claims, 8:30 a.m.; Freddie Mac, the mortgage company, releases weekly mortgage rates, 10 a.m.; Commerce Department releases wholesale trade inventories for December, 10 a.m.
FRIDAY, Feb. 10
WASHINGTON — Commerce Department releases international trade data for December, 8:30 a.m.; Treasury releases federal budget for January, 2 p.m.
MONDAY, Feb. 13
WASHINGTON — President Barack Obama releases his budget for the fiscal year that begins Oct. 1.
TUESDAY, Feb. 14
WASHINGTON — Commerce Department releases retail sales data for January, 8:30 a.m.; Commerce Department releases business inventories for December, 10 a.m.
WEDNESDAY, Feb. 15
WASHINGTON — Treasury releases international money flows data for December, 9 a.m.; Federal Reserve releases industrial production for January, 9:15 a.m.; National Association of Home Builders releases housing market index for February, 10 a.m.; Federal Reserve releases minutes from January interest-rate meeting.
THURSDAY, Feb. 16
WASHINGTON — Labor Department releases weekly jobless claims, 8:30 a.m.; Labor Department releases the Producer Price Index for January, 8:30 a.m.; Commerce Department releases housing starts for January, 8:30 a.m.; Freddie Mac, the mortgage company, releases weekly mortgage rates, 10 a.m.
FRIDAY, Feb. 17
WASHINGTON — Labor Department releases Consumer Price Index for January, 8:30 a.m.; Conference Board releases leading indicators for January, 10 a.m.
MONDAY, Feb. 20
U.S. stock and bond markets are closed for Washington's Birthday.
BRUSSELS — European Union finance ministers meet in Brussels.
TUESDAY, Feb. 21
WEDNESDAY, Feb. 22
WASHINGTON — National Association of Realtors releases existing home sales for January, 10 a.m.
THURSDAY, Feb. 23
WASHINGTON — Labor Department releases weekly jobless claims, 8:30 a.m.; Freddie Mac, the mortgage company, releases weekly mortgage rates, 10 a.m.
FRIDAY, Feb. 24
WASHINGTON — Commerce Department releases new home sales for January, 10 a.m.
MONDAY, Feb. 27
WASHINGTON — National Association of Realtors releases pending home sales index for January, 10 a.m.
TUESDAY, Feb. 28
WASHINGTON — Commerce Department releases durable goods for January, 8:30 a.m.; Standard & Poor's releases S&P/Case-Shiller index of home prices for December and the fourth quarter, 9 a.m.; The Conference Board releases the Consumer Confidence Index for February, 10 a.m.
WEDNESDAY, Feb. 29
WASHINGTON — Commerce Department releases fourth-quarter gross domestic product, 8:30 a.m.; Federal Reserve releases Beige Book, 2 p.m.

Business events scheduled for the coming week

The Associated Press — Fri, 27 Jan 2012 20:22:24 +0000

The Associated Press

MONDAY, Jan. 30
WASHINGTON — Commerce Department releases personal income and spending for December, 8:30 a.m.
Wendy's Co. reports quarterly financial results.
MADRID — Spain releases fourth-quarter economic growth figures.
TUESDAY, Jan. 31
WASHINGTON — Labor Department releases the fourth-quarter employment cost index, 8:30 a.m.; Standard & Poor's releases S&P/Case-Shiller index of home prices for November, 9 a.m.; The Conference Board releases the Consumer Confidence Index for January, 10 a.m.; Senate Banking, Housing and Urban Affairs Committee hearing on the Consumer Financial Protection Bureau, with the director, Richard Cordray.
Amazon.com Inc. reports quarterly financial results.
Exxon Mobil Corp. reports quarterly financial results.
Mattel Inc. reports quarterly financial results.
Pfizer Inc. reports quarterly financial results.
United Parcel Service Inc. reports quarterly financial results.
United States Steel Corp. reports quarterly financial results.
Japanese automaker Honda reports quarterly financial results.
BERLIN — Germany releases January unemployment figures.
WEDNESDAY, Feb. 1
WASHINGTON — Institute for Supply Management releases its manufacturing index for January, 10 a.m.; Commerce Department releases construction spending for December, 10 a.m.; House Budget Committee hearing on the budget and the economy, with Douglas Elmendorf, director of the Congressional Budget Office.; Senate Budget Committee hearing on the outlook for countries that share the euro as their currency.
DETROIT — Automakers release vehicle sales for January.
Aetna Inc. reports quarterly financial results.
Chrysler reports quarterly financial results.
Swiss pharmaceutical company Roche Group reports quarterly financial results.
DUBLIN — Ireland reports its latest unemployment figures,
THURSDAY, Feb. 2
WASHINGTON — Labor Department releases weekly jobless claims, 8:30 a.m.; Freddie Mac, the mortgage company, releases weekly mortgage rates, 10 a.m.; Labor Department releases fourth-quarter productivity data, 8:30 a.m.; Federal Reserve chairman Ben Bernanke testifies before the House Budget Committee about the state of the economy.; House Financial Services subcommittee hearing on the collapse of the MF Global financial firm.
NEW YORK — Selected chain retailers release January sales comparisons.
Dow Chemical Co. reports quarterly financial results.
Kellogg Co. reports quarterly financial results.
Mastercard Inc. reports quarterly financial results.
Merck & Co. Inc. reports quarterly financial results.
Starwood Hotels & Resorts Worldwide Inc. reports quarterly financial results.
Viacom Inc. reports quarterly financial results.
European oil company Royal Dutch Shell PLC reports quarterly financial results.
European consumer goods company Unilever NV reports quarterly financial results.
German bank Deutsche Bank reports quarterly financial results.
Luxury goods maker LVMH reports quarterly financial results.
Japanese electronics and entertainment company Sony Corp. reports quarterly financial results.
Japanese automaker Mazda reports quarterly financial results.
BEIJING — German Chancellor Angela Merkel speaks on international economic and financial policy.
FRIDAY, Feb. 3
WASHINGTON — Labor Department releases employment data for January, 8:30 a.m.; Institute for Supply Management releases its service sector index for January, 10 a.m.; Commerce Department releases factory orders for December, 10 a.m.

US gov't to extend and expand foreclosure program

The Associated Press — Fri, 27 Jan 2012 20:17:02 +0000

DEREK KRAVITZ

AP Economics Writer

WASHINGTON

The Obama administration said Friday that will expand its signature foreclosure-prevention program to try to help those with heavy debt loads avoid losing their homes.

The Home Affordable Modification Program will also be extended through 2013.

The government will triple the financial incentives for private lenders to reduce the principal amount of mortgages for homeowners at risk of losing their homes. And for the first time, the government will offer incentives for principal reductions to government-controlled mortgage giants Fannie Mae and Freddie Mac.

The three-year old program has strived to help those at risk of foreclosure lower their monthly payments. But it has failed to help more than half of those who have applied lower their payments on a permanent basis. Many have complained that the program is a bureaucratic nightmare.

The government has tried several different approaches to help struggling homeowners.

In his State of the Union address Tuesday, President Barack Obama said many Americans have suffered steep losses because of the housing crisis. And while he didn't address the criticism of his administration's efforts, Obama suggested the government could do a better job.

"While government can't fix the problem on its own, responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief," Obama said in his speech.

His administration has promised to unveil new legislation in the coming days to allow more homeowners to refinance their mortgages under a separate program, the Home Affordable Refinance Program.

Throughout the history of the $29 billion mortgage modification program, homeowners have complained that they were disqualified after banks lost their documents and failed to return phone calls. Banks have blamed homeowners for failing to submit needed paperwork.

Homeowners who are accepted into the program receive interest rates as low as 2 percent for five years. They can repay their loans over a longer period. The average savings for those who remain in the program is about $500 per month.

More than 1.7 million troubled homeowners received trial modifications over the past two years. Less than half of those who applied, or more than 900,000, have had their mortgage permanently lowered. A majority of the applicants have dropped out of the program altogether.

The Obama administration has blamed some of the nation's biggest mortgage lenders for not doing enough to help Americans avoid foreclosures. In June, the Treasury Department criticized four lenders — JPMorgan Chase, Bank of America, Wells Fargo and Ocwen Loan Servicing — and began withholding financial incentives of up to $1,000 per modification.

Wells Fargo, Ocwen and Bank of America got off the list in September and December. JPMorgan Chase has still been cited for rejecting people who were eligible for mortgage modifications.

Weekly US oil, gas rig count unchanged at 2,008

The Associated Press — Fri, 27 Jan 2012 19:05:53 +0000

The Associated Press

HOUSTON

The number of rigs actively exploring for oil and natural gas in the U.S. held steady this week at 2,008.

The Houston-based oilfield services company Baker Hughes Inc. reported Friday that 1,225 rigs were exploring for oil and 777 for natural gas. Six were listed as miscellaneous. A year ago this week Baker Hughes reported 1,732 active rigs.

Of the major oil- and gas-producing states, Oklahoma gained six rigs and Alaska picked up four. New Mexico was up by three, and Arkansas gained one.

Texas lost six rigs, while Louisiana and North Dakota were down four apiece. Colorado and Pennsylvania dropped by two each. California fell by one.

West Virginia was unchanged.

The rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999.

Newark, NJ, told to produce Facebook pledge log

The Associated Press — Fri, 27 Jan 2012 17:58:46 +0000

DAVID PORTER

Associated Press

NEWARK, N.J.

The state's largest city must produce a list of documents related to a $100 million pledge to its public schools from Facebook founder Mark Zuckerberg, a judge ruled Friday.

The ruling stemmed from of a lawsuit brought by the American Civil Liberties Union on behalf of a group representing Newark schoolchildren that is seeking more transparency about the donation. The Associated Press and other news outlets also have made such requests.

State Superior Court Judge Rachel Davidson's ruling requires the city to produce the list, believed to enumerate about 50 pages of emails pertaining to the donation, by Feb. 10. The city could seek to block the publishing of some of the emails on the list, according to ACLU New Jersey attorney Ed Barocas.

The city, in a response letter to an AP request for the documents in 2010, said that any conversations between Democratic Mayor Cory Booker and Zuckerberg were "not made in the course of the Mayor's official duties" and therefore were exempt from open-records laws.

Were Booker found to have been acting in his capacity as mayor, the letter continued, the city didn't have the records requested. But it added that if the records were found, their release was barred under executive privilege.

The ACLU, in its lawsuit, argued that privilege can be claimed only by the governor, not by a sitting mayor. It argued that the public has a right to know how the grant funds are to be used and who is making the decisions on their allocation.

"We don't want to make it seem that there was necessarily something nefarious going on," Barocas said Friday. "All we ask is for this to be transparent. The public should be aware what, if any, agreements were made prior to or as part of the grant of the money."

City attorney Anna Pereira declined to comment Friday, citing the ongoing litigation.

In court filings, the city has said that the Facebook grant is being administered not by the city but by two not-for-profits that it doesn't fund, operate or exercise any control over. The city's schools were placed under state control in 1995 after instances of waste and mismanagement, including the spending of taxpayer money by school board members on cars and restaurant meals.

Newark's public school system is the state's largest, with 75 schools and a student population of about 40,000, according to its website. The schools have been plagued for years by low test scores, poor graduation rates and crumbling buildings.

The $100 million pledge to the schools was announced in the fall of 2010 by Booker, Zuckerberg and Republican Gov. Chris Christie as they appeared together on Oprah Winfrey's syndicated talk show.

Zuckerberg described the gift as a "challenge grant" to Booker, who has sought to raise $100 million more to match what Zuckerberg promised to contribute over five years. Zuckerberg's social networking website, based in Palo Alto, Calif., is estimated to be worth more than $50 billion.

Recalls this week: Gel packs, flashlights, rattles

The Associated Press — Fri, 27 Jan 2012 17:43:30 +0000

The Associated Press

Freezer gel packs can help keep food at a safe temperature when on the go. But be careful if a pack bursts and the substance inside oozes out. It may be toxic and anyone ingesting it could be poisoned. The week's list of recalls includes two food carriers with gel packs that could put users at risk.

Here's a list of this week's recalls:

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INSULATED LUNCH BOXES

DETAILS: Expandable insulated lunch boxes, sold as sets with freezer gel packs and aluminum bottles, imported by California Innovations Inc., of Toronto, Canada. The sets were made in China and sold at Costco Wholesale Clubs, Leon Korol and Cost U Less stores from May 2007 through September 2008. The lunch box is made of vinyl, polyester nylon and crushed nylon and has a logo with the words "Ci Sport" attached to the upper left corner. It has a carrying handle on the top and a mesh carrying pouch for the aluminum bottle on the side. The gel pack is a 6-inch by 4-inch transparent plastic pouch filled with blue liquid gel and the words "Cryofreeze" and "Ice Pack/Hot Pack" are printed in white letters on the front of it.

WHY: Gel that contains diethylene glycol and ethylene glycol can leak out of damaged freezer gel packs. Anyone ingesting the substances could be poisoned.

INCIDENTS: California Innovations has received two reports of dogs chewing and ingesting gel from the gel pack. One dog reportedly died from ingestion of the gel. The other received treatment and has recovered.

HOW MANY: About 248,000

FOR MORE: Call 800-722-2545; visit www.californiainnovations.com .

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INSULATED FOOD CARRIERS

DETAILS: Travelin' Chef expandable insulated food carriers, sold as four-piece sets at Walmart stores from August 2008 through December 2011. The Chinese-made carriers were imported by California Innovations Inc., of Toronto, Canada. The sets include a light blue thermal carrier with black carrying handles, a freezer gel pack, a medium plastic food container and a large plastic food container. The gel pack is an 8.5-inch by 8-inch, opaque blue plastic pouch filled with liquid gel and the words "Cryofreeze" and "Ice Pack/Hot Pack" are printed in white letters on the front of it.

WHY: Gel that contains diethylene glycol and ethylene glycol can leak out of damaged freezer gel packs. Anyone ingesting the substances could be poisoned.

INCIDENTS: None reported

HOW MANY: About 55,000

FOR MORE: Call 800-722-2545; visit www.californiainnovations.com .

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LED FLASHLIGHT SETS

DETAILS: Sets of five LED flashlights of varying sizes with batteries, sold under the Superex SAFETO GO brand name. The Chinese-made sets were sold at BJ's Wholesale Club from July 2011 through December 2011, and imported by BJ's. The sets include one 9.5-inch flashlight, two 7.5-inch flashlights and two 6-inch flashlights, along with seven "D'' size batteries and four "AA" batteries. The flashlights in the sets are made of either red or black plastic with black or gray rubber around the handles and light bases.

WHY: The flashlights can heat up, smoke or melt when turned on, posing fire and burn hazards.

INCIDENTS: BJ's has received two reports of incidents, including flashlight overheating, and one burning and making a loud noise. One minor injury to a consumer's hand has been reported.

HOW MANY: About 41,000

FOR MORE: Call 800-BJS-CLUB (800-257-2582); visit www.bjs.com/contact .

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BABY RATTLE

DETAILS: Infant rattles imported by Lee Carter Co., of San Francisco. The rattles were sold at various Mexican specialty craft stores nationwide from February 2001 through October 2011. The rattles are made out of multi-colored, woven plastic and have a bell inside. They measure about 4 1/2 inches long. "Made in Mexico" and "Lee Carter Company" are printed on a tag on a purple plastic loop at the end of the rattle's handle. The rattles were manufactured in Mexico.

WHY: The rattle's handle is small enough to fit into a child's throat, posing a choking hazard and violating federal rattle standards.

INCIDENTS: None reported

HOW MANY: About 25,000

FOR MORE: Call 415-824-2004; visit www.leecartercompany.com .

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ACTION FIGURES

DETAILS: Super Luchamania Action Figures, depicting Mexican wrestlers wearing capes and masks, were imported by Lee Carter Co., of San Francisco and sold at various Mexican specialty craft stores nationwide from June 2000 through October 2011. The multi-colored plastic figures were sold in packs of 12, with each figure about four inches tall. "Super Luchamania" is printed on the packaging. The action figures were manufactured in Mexico.

WHY: Surface paint on the action figures contains excessive levels of lead, which is prohibited under federal law.

INCIDENTS: None reported

HOW MANY: About 7,000 packs

FOR MORE: Call 415-824-2004; visit www.leecartercompany.com .

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BICYCLE HANDLEBARS

DETAILS: Bicycle handlebars imported by Euro Asia Imports, of La Crescenta, Calif., The Merry Sales Co., of South San Francisco, Calif. and Bicycle Technologies Intl., of Santa Fe, N.M. The bars were manufactured by Japan-based Nitto Co Ltd., and sold at bicycle specialty stores and dealers nationwide from January 2008 through July 2011. The Nitto aluminum bicycle handlebars were sold in red, blue, black, gold, green, pink and silver. "NITTO" and "B259" are printed at the end of the handlebars.

WHY: The recalled handlebars can break while the user is riding a bike, resulting in loss of control and the risk of a fall.

INCIDENTS: Two incidents of the handlebars breaking have been reported, including one involving a fall and a cut to the rider's leg.

HOW MANY: About 2,000 in the United States and 70 in Canada

FOR MORE: Call 888-662-1814; visit http://www.euroasiaimports.com .

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LAWN MOWER BLADES

DETAILS: Replacement blades for Ariens 48-inch lawn mowers manufactured by Blount International Inc., of Kansas City, Mo. The blades were sold at independent lawn and garden sales and service stores nationwide from January 2010 through September 2011. The U.S.-manufactured blades are sold under the "Oregon" brand name, which is printed on the surface of the blades.

WHY: The replacement blades can break during normal use, posing a risk that someone using the mower or a bystander could be hit by a sharp blade.

INCIDENTS: Blount has received seven reports of replacement blades breaking during use. No injuries have been reported.

HOW MANY: About 950

FOR MORE: Call 866-685-5449; visit www.blount.com .

Detroit Symphony offering series of free webcasts

The Associated Press — Fri, 27 Jan 2012 17:34:20 +0000

The Associated Press

DETROIT

The Detroit Symphony Orchestra has launched a webcast player that will allow music lovers to enjoy an upcoming performance of Mozart's Horn Concerto No. 4 and other concerts online for free in the comfort of their homes.

People in about 40 countries are expected to view Saturday's high-definition "Live from Orchestra Hall" webcast, and the orchestra expects its webcast series to surpass 30,000 views with this weekend's episode.

The orchestra said the webcast player will make online viewers feel as if they are sitting in Detroit's Orchestra Hall.

The Symphony said it is the only U.S. orchestra to offer a free series of webcasts, which are made possible through contributions from the John S. and James L. Knight Foundation and the Ford Motor Co. Fund.

The new viewing environment mimics the interior of Orchestra Hall, giving audiences across the world the same view as local music lovers.

The webcast player also features dimming controls so that viewers at home can control their own version of the house lights.

Audience members now will be able to view a full schedule of upcoming webcasts and add them their online calendars. Viewers also can tweet directly from the webcast player page and follow the feed in the same browser window, allowing audience members to interact with fellow concertgoers while watching the concert at the same time.

The piece being played at any moment will be highlighted on a live repertoire tracker, and live program notes will post below the viewing window with trivia about the piece and the artists.

The "Live From Orchestra Hall" series is one of three new digital initiatives the DSO is introducing this season. Also new to the orchestra's digital repertoire are DSO To Go, a free mobile app, and the Symphony's first downloadable, digital album produced in-house.

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Online:

Detroit Symphony Orchestra: http://www.dso.org/