U.S. DOL AWARDS $5 MILLION TO REDUCE CHILD DOMESTIC WORK IN INDONESIA

 

The Sea Temple of Pura Luhur at Uluwatu in south Bali dates back to the 11th century.

FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor awards $5 million to reduce child domestic work and promote decent work for domestic workers in Indonesia

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs awarded a $5 million cooperative agreement to the International Labor Organization for a project to support efforts to reduce child domestic work by building the capacity of domestic worker organizations and promoting decent work for domestic workers in four provinces of Indonesia.

Under the agreement, the International Labor Organization's International Program on the Elimination of Child Labor will partner with the National Network for Domestic Workers Advocacy in Indonesia, the Network of Indonesian Child Labor NGOs, and the Action Committee for Protection of Domestic Workers and Migrant Workers. The project will draw on the proven strengths of different organizations, associations, agencies and government institutions at the local, national and international levels.

The organizations will focus on: expanding legal protection to child and adult domestic workers; broadening the outreach and responsiveness of domestic worker organizations at the national and regional levels to combat the problem of child domestic work and improve decent work of domestic workers through targeted capacity building; promoting in-country and regional knowledge sharing; raising awareness using non-traditional media and innovative partnerships; and analyzing and documenting project outcomes.

Since 1995, the Labor Department has funded 260 projects implemented by more than 65 organizations in 91 countries, which have resulted in the rescue of approximately 1.5 million children from exploitative child labor. ILAB currently oversees more than $210 million of active programming to combat exploitative child labor.

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

FROM: U.S. DEPARTMENT OF LABOR

SEASONALLY ADJUSTED DATA

In the week ending December 15, the advance figure for seasonally adjusted initial claims was 361,000, an increase of 17,000 from the previous week's revised figure of 344,000. The 4-week moving average was 367,750, a decrease of 13,750 from the previous week's unrevised average of 381,500.

The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending December 8, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 8 was 3,225,000, an increase of 12,000 from the preceding week's revised level of 3,213,000. The 4-week moving average was 3,240,500, a decrease of 33,500 from the preceding week's revised average of 3,274,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 400,422 in the week ending December 15, a decrease of 28,766 from the previous week. There were 421,103 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 8, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,231,115, an increase of 56,406 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,628,343.

The total number of people claiming benefits in all programs for the week ending December 1 was 5,402,429, a decrease of 238,637 from the previous week. There were 7,152,130 persons claiming benefits in all programs in the comparable week in 2011.

Extended Benefits were only available in New York during the week ending December 1.

Initial claims for UI benefits filed by former Federal civilian employees totaled 2,054 in the week ending December 8, an increase of 28 from the prior week. There were 2,831 initial claims filed by newly discharged veterans, a decrease of 125 from the preceding week.

There were 21,340 former Federal civilian employees claiming UI benefits for the week ending December 1, an increase of 562 from the previous week. Newly discharged veterans claiming benefits totaled 39,480, a decrease of 2,017 from the prior week.

States reported 2,096,545 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending December 1, a decrease of 97,708 from the prior week. There were 2,941,157 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending December1 were in Alaska (6.2), New Jersey (3.9), Pennsylvania (3.9), Puerto Rico (3.7), Montana (3.4), California (3.3), Nevada (3.3), Oregon (3.3), Connecticut (3.2), and Wisconsin (3.1).

The largest increases in initial claims for the week ending December 8 were in California (+5,952), Florida (+749), Ohio (+743), Rhode Island (+197), and Colorado (+161), while the largest decreases were in New York (-11,295), Pennsylvania (-11,247), North Carolina (-8,564), Wisconsin (-5,726) and Georgia (-5,317).

U.S. DOL AWARDS $10 MILLION TO COMBAT CHILD LABOR IN TANZANIA

Photo:  Site of former slave market, south of Stone Town.  From:  CIA World Factbook.

　
FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor awards $10 million to International Rescue Committee to combat child labor in Tanzania

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today awarded $10 million for a cooperative agreement with the International Rescue Committee to combat child labor in Tanzania. The project will target regions where there is a prevalence of child labor in agriculture and domestic service.

The International Rescue Committee will partner on this project with World Vision, the Foundation for Civil Society, Kiota Women's Health Development, the Tanga Youth Development Association and The Institute for Development Studies at the University of Dar es Salaam.

These organizations will help provide services to protect children from the worst forms of child labor. The project will get children into school, train youths in business and entrepreneurial skills, help raise household income, and link families to existing village community banks and social protection services. It also will work with local and national government to build their capacity to implement policies to eliminate child labor.

Since 1995, ILAB projects have rescued approximately 1.5 million children from exploitive child labor. The Labor Department has funded 260 such projects implemented by more than 65 organizations in 91 countries. ILAB currently oversees more than $210 million of active programming to combat the worst forms of child labor.

 

U.S. DEPARTMENT OF LABOR FINDS VIOLATIONS OF LAW AT LOS ANGELES FASHION DISTRICT LOCATION



Credit:  Wikmedia Commons. 

FROM: U.S. DEPARTMENT OF LABOR

Extensive violations of federal, state laws found among garment contractors at Los Angeles Fashion District location

Shops producing garments sold by major retailers underpaid 185 workers by $326,000

LOS ANGELES — The U.S. Department of Labor's Wage and Hour Division and the California Division of Labor Standards Enforcement found serious violations of federal and state labor laws by each of 10 garment contractors inspected during a sweep of a single building in the Los Angeles Fashion District earlier this year. Division investigators found widespread violations of the Fair Labor Standards Act's minimum wage, overtime and record-keeping provisions, resulting in the recovery of more than $326,200 in back wages for 185 employees.

The garments being produced by violators were destined for sale at more than 30 retailers nationwide, including Aldo Group Inc., Burlington Coat Factory Warehouse Corp., Charlotte Russe Holding Inc., Dillard's Inc., Forever 21 Inc., Frasier Clothing Co. (Susan Lawrence), HSN Inc. (Home Shopping Network), Rainbow Apparel Inc., Ross Stores Inc., TJX Cos. Inc. (TJ Maxx and Marshall's), Urban Outfitters Inc. and Wet Seal Inc.

"The extent of the violations discovered by these investigations was disappointing. Retailers need to actively ensure that clothes produced in the U.S. for sale to the American public are made by workers who are paid at least the U.S. minimum wage and proper overtime," said Secretary of Labor Hilda L. Solis. "Federal, state, local and industry stakeholders can work together to foster a vibrant, and compliant, domestic fashion industry."

"The garment industry is a vital part of the economy of Los Angeles and California," said Julie Su, California's labor commissioner. "State law prohibits garment manufacturers from operating without a proper license, from violating state minimum wage and overtime laws, and from playing shell games to avoid paying workers properly. We are intent on making sure that sweatshop practices are eliminated so that consumers can proudly purchase garments made in L.A., honest companies can compete and garment workers can thrive."

Teams of federal and state investigators conducted unannounced investigations of employers operating out a large garment building at 830 S. Hill St. in downtown Los Angeles, where previous investigations had revealed significant labor violations and sweatshop-like employment conditions.

Investigators found many garment employees were paid a piece rate — that is, paid for each piece they sewed or cut —without regard to minimum wage or overtime pay requirements. On average, workers' wages amounted to less than $6.50 per hour — well below the federal minimum wage of $7.25 per hour and the California minimum wage of $8 per hour. None of these employees received the overtime premium of time and one-half their regular rates of pay for hours worked over 40 per week, as required under the FLSA. Significant record-keeping violations also were disclosed, including falsified time cards and under-reporting or failing to maintain accurate records of actual hours worked by garment employees.

The "hot goods" provision of the FLSA prohibits the shipment in interstate commerce of goods that were produced in violation of the act's minimum wage, overtime or child labor provisions. Upon determining that garments were produced in violation of the FLSA, the division requested that the garment contractors voluntarily not ship the goods until the violations were resolved. Several manufacturers, for whom the violators were producing goods, paid a portion of the back wages due, after which the division lifted its objection to the shipment of the goods.

State investigators issued citations to three establishments not registered as garment contractors and cited the shops for failing to provide itemized deductions, pay the state minimum wage or comply with state overtime pay requirements.

The investigations conducted at this location are part of the Wage and Hour Division's multi-year enforcement initiative focused on Southern California's garment industry, in which it historically has found consistent and widespread violations of the FLSA's minimum wage, overtime and record-keeping provisions. The initiative is concentrating on employers in Los Angeles and Orange counties, including those operating out of large garment buildings in the city's Fashion District.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for hours worked over 40 per week. In general, "hours worked" includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employees' wages, hours and other conditions of employment be maintained. California's minimum wage is $8 per hour, higher than the U.S. minimum wage, and overtime pay is required after eight hours worked in a day under state law. California employers are subject to both standards.

U.S. LABOR DEPT. RELEASES TOOLKIT TO BATTLE CHILD AND FORCED LABOR

Where Are The Kids?  Credit:  U.S. EPA. 

FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor releases toolkit to help businesses combat child and forced labor in global supply chains

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today introduced Reducing Child Labor and Forced Labor: A Toolkit for Responsible Businesses, the first guide developed by the U.S. government to help businesses combat child labor and forced labor in their global supply chains.

"Encouraging businesses to reduce child and forced labor in their supply chains helps advance fundamental human rights that are at the core of worker dignity, whether here in the U.S. or abroad," Secretary of Labor Hilda L. Solis said in a video message announcing the toolkit.

The free, easy-to-use toolkit was unveiled during an event at Labor Department headquarters for representatives of government, industry, labor and civil society organizations that are at the forefront of efforts to prevent labor abuses in the production of goods. Speakers included Carol Pier, acting deputy undersecretary of ILAB; Eric Biel, acting associate deputy undersecretary of ILAB; and David Abramowitz, vice president of policy and government relations at Humanity United.

The toolkit highlights the need for a social compliance program that integrates a company's policies and practices to ensure that the company addresses child labor and forced labor throughout its supply chain. It provides practical, step-by-step guidance on eight critical elements that will be helpful for companies that do not have a social compliance system in place or those needing to strengthen existing systems. An integrated social compliance system includes: engaging stakeholders and partners, assessing risks and impacts, developing a code of conduct, communicating and training across the supply chain, monitoring compliance, remediating violations, independent review and reporting performance.

U.S. UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING DECEMBER 8, 2012

FROM: U.S. DEPARTMENT OF LABOR
 
SEASONALLY ADJUSTED DATA

In the week ending December 8, the advance figure for seasonally adjusted initial claims was 343,000, a decrease of 29,000 from the previous week's revised figure of 372,000. The 4-week moving average was 381,500, a decrease of 27,000 from the previous week's revised average of 408,500.

The advance seasonally adjusted insured unemployment rate was 2.5 percent for the week ending December 1, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending December 1 was 3,198,000, a decrease of 23,000 from the preceding week's revised level of 3,221,000. The 4-week moving average was 3,270,750, a decrease of 42,250 from the preceding week's revised average of 3,313,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 428,814 in the week ending December 8, a decrease of 72,117 from the previous week. There were 435,863 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.5 percent during the week ending December 1, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,159,199, a decrease of 158,195 from the preceding week. A year earlier, the rate was 2.8 percent and the volume was 3,540,663.

The total number of people claiming benefits in all programs for the week ending November 24 was 5,642,678, an increase of 683,477 from the previous week. There were 7,449,508 persons claiming benefits in all programs in the comparable week in 2011.

Extended Benefits were only available in New York during the week ending November 24.

Initial claims for UI benefits filed by former Federal civilian employees totaled 2,017 in the week ending December 1, an increase of 389 from the prior week. There were 2,910 initial claims filed by newly discharged veterans, an increase of 1,047 from the preceding week.

There were 20,778 former Federal civilian employees claiming UI benefits for the week ending November 24, an increase of 1,930 from the previous week. Newly discharged veterans claiming benefits totaled 41,391, an increase of 4,501 from the prior week.

States reported 2,194,253 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending November 24, an increase of 185,645 from the prior week. There were 3,048,926 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending November 24 were in Alaska (5.8), New Jersey (4.5), Puerto Rico (4.0), Oregon (3.8), Pennsylvania (3.7), California (3.5), Wisconsin (3.5), Montana (3.4), Connecticut (3.3), Nevada (3.2), and West Virginia (3.2).

The largest increases in initial claims for the week ending December 1 were in California (+24,411), Pennsylvania (+14,636), North Carolina (+13,961), New York (+11,025), and Texas (+10,435), while the largest decreases were in Kentucky (-615), Idaho (-481), Vermont (-402), Florida (-348) and Wisconsin (-91).

　

NEW RULE MAKES DISTRIBUTION OF BANKRUPT COMPANY RETIREMENT FUNDS, EASIER

FROM: U.S. DEPARTMENT OF LABOR

US Department of Labor proposes rule to help retirees, workers of bankrupt companies get retirement money sooner

Rule makes it easier for bankruptcy trustees to distribute benefits to 401(k) plan participants

WASHINGTON — The U.S Department of Labor's Employee Benefits Security Administration today announced a proposed rule and related class exemption that will make it easier for Chapter 7 bankruptcy trustees to distribute assets from bankrupt companies' retirement plans. The proposal would allow such trustees to use EBSA's existing Abandoned Plan Program to terminate, wind up and distribute benefits from such plans.

The existing Abandoned Plan Program provides streamlined termination and distribution procedures for abandoned individual account plans, including 401(k) plans, under which benefits may be distributed in a manner that can substantially reduce fees charged to participants' accounts for, among other things, annual reporting, legal compliance and other administrative services, including termination costs. By making this streamlined process available to Chapter 7 bankruptcy trustees, the time and resources required to "wind up" a bankrupt company's retirement plan can be significantly reduced. As a result, plan participants likely will see fewer administrative and termination fees charged to their accounts and should have access to their money sooner.

"The rule we're proposing today is designed to help workers and retirees of bankrupt companies gain access to their retirement money sooner. Far too often, the retired workers of these companies are unable to obtain their hard-earned retirement savings in a timely way. The legal status of a former employer should not impede retirees' access to their own funds, especially at the very time they need them most," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "The proposed rule would extend the department's current Abandoned Plan Program to these retirement plans, and enable Chapter 7 bankruptcy trustees to more quickly and efficiently distribute retirement benefits to participants. The rule also would reduce the possibility of participants' accounts being eroded by excessive and unnecessary fees."

Under amendments in 2005 to federal bankruptcy law, if a company in liquidation administered an individual account retirement plan, the company's Chapter 7 bankruptcy trustee must perform those functions. The Abandoned Plan Program, established in 2006, provides specific guidance on when a plan may be considered abandoned, who may make that determination, and exactly how to terminate the affairs of the plan and make benefit distributions. The program also limits potential fiduciary liability of financial institutions that step in to terminate and wind up plans that have been abandoned by their sponsors.

U.S. DOL SUES TO RECOVER EMPLOYEE LOSSES IN STOCK OWNERSHIP PLAN

FROM: U.S. DEPARTMENT OF LABOR

US Labor Department sues to recover losses to employee stock ownership plan of Rembar Inc.

NEW YORK — The U.S. Department of Labor has filed a lawsuit to recover losses suffered by participants in the Rembar Inc. Employee Stock Ownership Plan after the plan allegedly was allowed to purchase overvalued company stock. The suit names as defendants Rembar owner and CEO Frank Firor and First Bankers Trust Services Inc., which was hired as an independent fiduciary and trustee in connection with the company's newly formed plan. The plan is also a defendant.

"Employee Retirement Income Security Act fiduciary duties are the highest standard of care known to the law and apply to those who manage employee benefit plans," said Jonathan Kay, regional director of the Labor Department's Employee Benefits Security Administration's New York Regional Office. "The department remains committed to ensuring that fiduciaries work solely in the interest of plan participants and beneficiaries."

The suit alleges that, in June 2005, First Bankers Trust Services allowed the plan to purchase 100 percent of the company's stock from Firor and Firor's relatives for $15.5 million. An investigation by EBSA determined that First Bankers Trust Services failed to comply with its duty to understand the valuation report that set the purchase price, identify and question assumptions in the report, and verify that the conclusions in the report were consistent with the company's financial data. As a result of First Bankers Trust Services' failure to comply with its fiduciary duties, the plan overpaid for the stock and suffered losses.

The suit seeks, among other things, to recover jointly from First Bankers Trust Services and Firor all losses suffered by the plan.

Rembar Inc. is engaged in the distribution and manufacturing of precision parts made from refractory metals. The suit was filed in the U.S. Court for the Southern District of New York and is being litigated by the department's Regional Office of the Solicitor in Manhattan. The suit is based on an investigation conducted by EBSA's New York Regional Office.

U.S. LABOR DEPARTMENT SUES FRUIT AND VEGITABLE GROWERS FOR NOT PAYING FEDERAL MINIMUM WAGE

Photo Credit:   Wikimedia Commons.

FROM: U.S. DEPARTMENT OF LABOR

US Labor Department sues Sabana Grande fruit and vegetable growers for not paying workers minimum wage

Suit seeks back wages, liquidated damages from Bananera Fabre, Finca La Platas

SAN JUAN, Puerto Rico — The U.S. Department of Labor has filed a lawsuit against agricultural employers Jose V. Fabre Laboy, doing business as Bananera Fabre, and his son, Jose V. Fabre Santiago, doing business as Finca La Plata, for failing to pay their workers the minimum wage as required by the Fair Labor Standards Act. The defendants cultivate and package bananas, tomatoes, and other fruits and vegetables for wholesale at contiguous locations on Rte. 117 in Sabana Grande.

An investigation by the department's Wage and Hour Division found that the defendants willfully and repeatedly violated the law. The federal minimum wage is $7.25 per hour, but the defendants paid many employees only $6.25 or $6.50 per hour. The division estimates that a total of $191,402 is owed to 174 employees between the two employers.

"These agricultural employers willfully and repeatedly violated the law, and they continue to withhold payments of unpaid wages due to their employees," said Jose R. Vazquez, the director of the division's district office in Guaynabo, which conducted the investigation. "We will not tolerate these actions and, as demonstrated by the filing of this lawsuit, the Labor Department will use all enforcement tools available to recover workers' wages and hold accountable employers who demonstrate a clear disregard for the law."

The department's Regional Office of the Solicitor filed the suit in the U.S. District Court for the District of Puerto Rico in San Juan. The suit asks the court to order the defendants to pay the full amount of back wages due plus an equal amount in liquidated damages to the affected workers. The suit also seeks to permanently prohibit the defendants from future violations of the FLSA.

Fabre Laboy has been the subject of several Wage and Hour Division investigations in the past. As a result of the most recent prior inspection, Fabre Laboy paid $38,098 in back wages as well as $6,381 in civil money penalties.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees' wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.

U.S. SECRETARY OF LABOR SOLIS MAKES STATEMENT ON 2012 INTERNATIONAL DAY OF PERSONS WITH DISABILITIES

U.S. Secretary Of Labor Hilda L. Solis

FROM: U.S. DEPARTMENT OF LABOR

Statement by Secretary of Labor Hilda L. Solis on 2012 International Day of Persons with Disabilities

WASHINGTON —December 3, 2012
Secretary of Labor Hilda L. Solis issued the following statement to mark the 2012 International Day of Persons with Disabilities:

"Today is an important opportunity to celebrate the diversity and innovation that people with disabilities bring to businesses of all sizes in all industries every day. Through their talents and skills, they are contributing to global economic growth and making the United States a stronger nation.

"More countries are coming to recognize the importance of giving all qualified job seekers equal opportunity to compete. However, in both good economic times and in bad, people with disabilities continue to have fewer opportunities in our educational institutions and workplaces than those without disabilities. This must change. We know that there’s a strong business case for why companies should hire people with disabilities. These Americans want to work, and they’re highly capable of success if proper accommodations are made. In fact, there’s a growing body of evidence proving that workers with disabilities often meet or exceed the job performance of those without them.

"Here at home, we’ve made tremendous advances since the passage of the Americans with Disabilities Act in combating discrimination against those who may have a disability. With this progress domestically comes a greater responsibility on the world stage to work with other nations so that they embrace policies to help the world’s 1 billion persons with disabilities access good jobs, educational opportunities and critical medical care.

"Today, I join President Obama in calling on foreign nations to recognize the dignity and extraordinary talents of persons with disabilities everywhere. The Department of Labor is committed to providing our partners at home and abroad with information about the most effective strategies for employing persons with disabilities."

 

U.S. LABOR DEPARTMENT SUES DALLAS-BASED COMPANY FOR BACK MINIMUM AND OVERTIME WAGES

FROM: U.S. DEPARTMENT OF LABOR

US Labor Department sues Dallas-based The Christmas Light Co. to secure more than $240,000 in minimum and overtime back wages

DALLAS — The U.S. Department of Labor has filed a lawsuit against The Christmas Light Co. Inc. and owner William F. Rathburn to recover approximately $240,881 in wages and an additional amount in liquidated damages on behalf of 233 employers who installed and removed lights for the company. An investigation in Dallas by the department's Wage and Hour Division found that the company violated the Fair Labor Standards Act by failing to pay 233 installers and removers the minimum and overtime wages required by law.

"The Labor Department holds employers accountable when they do not properly pay their workers," said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. "Failing to pay minimum and overtime wages is unacceptable. Such behavior robs workers of their rightful wages and undercuts those hardworking and conscientious employers who obey the law. This lawsuit demonstrates that the department will use all enforcement tools available, including litigation, to recover workers' wages and ensure a level playing field for law-abiding employers."

The complaint was filed in the Northern District of Texas, Dallas Division seeking back wages, liquidated damages and an injunction against future violations of the FLSA, which provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.

The investigation determined that the company paid employees a flat rate for installing and removing Christmas lights without regard to the number of hours the employees had worked. Investigators also found that in most cases employees were paid "straight time" rather than overtime at time and one-half their regular rates for hours worked over 40 in a week, as required. Additionally, records required by the FLSA were not maintained.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked. An overtime premium rate takes into account commissions, bonuses and incentive pay. Additionally, employers must maintain accurate time and payroll records.

U.S. SECRETARY OF LABOR SOLIS COMMENTS ON THE INDUSTRIAL FIRE IN BANGLADESH

Map:  Bangladesh. Credit:  CIA World Factbook 

FROM: U.S. DEPARTMENT OF LABOR
Secretary of Labor Hilda L. Solis today issued the following statement regarding the tragic fire in Bangladesh:"This past Saturday, Bangladesh suffered one of the worst industrial accidents in its history. A devastating fire swept through the Tazreen Fashion garment factory, killing more than 100 and injuring many more. I join U.S. Ambassador to Bangladesh Dan Mozena in extending heartfelt condolences to the people of Bangladesh and the many families who lost their loved ones. "Just over a century ago, in March 1911, the Triangle Shirtwaist factory in New York City burned to the ground, killing 146 people, mainly young women. That fire was our call to action. It galvanized support for stronger worker protections and institutions to enforce them, from workplace health and safety to workers' right to organize and bargain collectively.

"The Tazreen Fashion factory fire is a similar call to action for Bangladesh and also for the many international buyers supplied by the country's garment factories. Investigations should be conducted and the perpetrators punished, but things cannot then return to business as usual. I know that change is not easy. The U.S. Department of Labor stands ready to help, with technical assistance and expertise, to work with the government of Bangladesh to ensure that this horrific tragedy becomes a watershed moment for Bangladeshi workers' rights."

U.S. UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING NOVEMBER 24, 2012



Photo Credit:  Wikimedia.

FROM: U.S. DEPARTMENT OF LABOR

 
SEASONALLY ADJUSTED DATA

In the week ending November 24, the advance figure for seasonally adjusted initial claims was 393,000, a decrease of 23,000 from the previous week's revised figure of 416,000. The 4-week moving average was 405,250, an increase of 7,500 from the previous week's revised average of 397,750.
The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending November 17, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 17 was 3,287,000, a decrease of 70,000 from the preceding week's revised level of 3,357,000. The 4-week moving average was 3,296,250, an increase of 6,250 from the preceding week's revised average of 3,290,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 357,015 in the week ending November 24, a decrease of 46,541 from the previous week. There were 372,640 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.2 percent during the week ending November 17, a decrease of 0.1 percentage point from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,820,064, a decrease of 124,308 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,167,053.

The total number of people claiming benefits in all programs for the week ending November 10 was 5,182,815, a decrease of 58,623 from the previous week. There were 7,004,413 persons claiming benefits in all programs in the comparable week in 2011.

Extended Benefits were only available in New York during the week ending November 10.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,629 in the week ending November 17, a decrease of 447 from the prior week. There were 2,385 initial claims filed by newly discharged veterans, a decrease of 416 from the preceding week.

There were 18,606 former Federal civilian employees claiming UI benefits for the week ending November 10, a decrease of 762 from the previous week. Newly discharged veterans claiming benefits totaled 39,318, a decrease of 285 from the prior week.

States reported 2,119,054 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending November 10, a decrease of 37,451 from the prior week. There were 2,972,894 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending November 3 were in Alaska (5.1), New Jersey (4.1), Puerto Rico (3.8), Pennsylvania (3.6), Connecticut (3.2), Oregon (3.1), California (3.0), New York (2.9), Nevada (2.8), Virgin Islands (2.8), and West Virginia (2.8).

The largest increases in initial claims for the week ending November 17 were in Florida (+1,534), Michigan (+1,427), Massachusetts (+1,189), Kentucky (+945), and Minnesota (+872), while the largest decreases were in New York (-30,603), California (-26,337), Pennsylvania (-11,451), Oregon (-1,997) and North Carolina (-1,851).

U.S. DEPARTMENT OF LABOR AWARDS $6 MILLION TO WINROCK INTERNATIONAL TO COMBAT CHILD LABOR IN LIBERIA

Map:  Liberia.  Credit:  CIA World Factbook

FROM: U.S. DEPARTMENT OF LABOR
US Department of Labor awards $6 million to Winrock International to combat child labor in rubber-producing areas of Liberia

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced a $6 million cooperative agreement award to Winrock International for a project to combat child labor in geographic areas of Liberia that produce rubber.

Under the agreement, Winrock International will partner with local rubber-producing companies Liberian Co./LIBCO and Morris-American Rubber Co.; the General Agriculture and Allied Workers Union of Liberia; and nongovernmental organizations Forum for African Women Educationalists, and African Network for Prevention and Protection Against Child Labor.

The project is designed to support the direct delivery of services to children engaged in or at risk of child labor. It will assist households in Liberian communities where families are largely dependent on smallholder rubber plantations by providing education, livelihood and youth employment services. In addition, the project will promote improved policies to address child labor on company plantations, and enhance the monitoring and enforcement of these policies. Finally, the project will help vulnerable children and their families to access existing social protection programs such as school feeding and direct cash transfer programs that are supported by the government of Liberia.

Since 1995, the Labor Department has funded 260 projects implemented by more than 65 organizations in 91 countries, which have resulted in the rescue of approximately 1.5 million children from exploitative child labor. ILAB currently oversees more than $210 million of active programming to combat exploitative child labor.
　

Liberia Locator Map.  Credit:  CIA World Factbook 

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK
Liberia is a low income country heavily reliant on foreign assistance for revenue. Civil war and government mismanagement destroyed much of Liberia's economy, especially the infrastructure in and around the capital, Monrovia. Many businesses fled the country, taking capital and expertise with them, but with the conclusion of fighting and the installation of a democratically-elected government in 2006, several have returned. Liberia has the distinction of having the highest ratio of direct foreign investment to GDP in the world. Richly endowed with water, mineral resources, forests, and a climate favorable to agriculture, Liberia had been a producer and exporter of basic products, primarily raw timber and rubber and is reviving those sectors. Local manufacturing, mainly foreign owned, had been small in scope. President JOHNSON SIRLEAF, a Harvard-trained banker and administrator, has taken steps to reduce corruption, build support from international donors, and encourage private investment. Embargos on timber and diamond exports have been lifted, opening new sources of revenue for the government and Liberia shipped its first major timber exports to Europe in 2010. The country reached its Heavily Indebted Poor Countries initiative completion point in 2010 and nearly $5 billion of international debt was permanently eliminated. This new status will enable Liberia to establish a sovereign credit rating and issue bonds. Liberia''s Paris Club creditors agreed to cancel Liberia''s debt as well. The IMF has completed the sixth review of Liberia''s extended credit facility, bringing total disbursements to over $379 million. The African Development Bank approved a grant of $48 million in 2011 to support economic governance and competitiveness. Rebuilding infrastructure and raising incomes will depend on generous financial and technical assistance from donor countries and foreign investment in key sectors, such as infrastructure and power generation.

U.S. DEPARTMENT OF LABOR AWARDS $10 MILLION TO WORLD VISON TO COMBAT CHILD LABOR IN CAMBODIA

Face at the Bayon temple at Angko.  From CIA World Factbook.

FROM: U.S. DEPARTMENT OF LABOR 

US Department of Labor awards $10 million agreement to World Vision to combat child labor in Cambodia

WASHINGTON — The U.S. Department of Labor's Bureau of International Labor Affairs today announced a $10 million cooperative agreement to World Vision for a project to combat child labor in Cambodia's agriculture, fishing, fisheries, aquaculture and domestic service sectors.

World Vision will partner with local nongovernmental organizations Wathnakpheap, Farmer Livelihood Development, Vulnerable Children Association Organization, and Cambodia Development Resource Institute. The project will provide education, sustainable livelihood and youth employment services to children engaged in or at risk of child labor, and other members of their households. It also will help households and vulnerable children to access social protection programs that are supported by the Royal Government of Cambodia.

Since 1995, the Labor Department has funded 260 projects implemented by more than 65 organizations in 91 countries, which have resulted in the rescue of approximately 1.5 million children from exploitative child labor.

THE FIGHT TO END HUMAN TRAFFICKING

Jada Pinkett Smith meets with Deputy AG Cole.

FROM: U.S. DEPARTMENT OF JUSTICE

The Fight to End Human Trafficking Contineus
November 21st, 2012
Posted by Tracy Russo
Deputy Attorney General James Cole met with Jada Pinkett Smith last week to discuss the department’s extensive efforts to end human trafficking. Ms. Pinkett Smith founded the organization, Don’t Sell Bodies, to raise awareness about this global epidemic and advocate for victims of trafficking. Ms. Pinkett Smith was joined by former trafficking victims who now work to raise awareness and eliminate human trafficking, including Minh Dang and Withelma "T" Ortiz-Macey, Glamour magazine’s 2011 Woman of the Year.

During the meeting the group discussed remarks made by Deputy Cole before the INTERPOL General Assembly in Italy earlier this month, which largely focused on the department’s myriad of efforts to combat trafficking, including the links between transnational organized crime and human trafficking and the department’s prosecution and training efforts in this area.

Human trafficking cases are prosecuted by several Department of Justice components, including the Civil Rights Division and its specialized Human Trafficking Prosecution Unit, the Criminal Division through the Child Exploitation and Obscenity Section, and individual U.S. Attorney’s Offices. These cases are investigated by the Federal Bureau of Investigation, the Department of Homeland Security’s Immigration and Customs Enforcement/Homeland Security Investigations, and partners at the Departments of Labor and State.

In recent years we have demonstrated unprecedented success in fighting both labor and sex trafficking. We are bringing a record number of federal cases, while at the same time, more states than ever before have passed their own anti-trafficking laws. The department has increased the number of human trafficking prosecutions by more than 30 percent in forced labor and adult sex trafficking cases, while also increasing the number of convictions in Innocence Lost National Initiative cases by 30 percent.

Working with federal, state, local, and international law enforcement agencies, we recently secured the longest sentence ever imposed in a forced labor case. In United States v. Botsvynyuk, the lead defendant was sentenced to life in prison plus twenty years, and his co-conspirator was sentenced to twenty years, for their respective roles in an organized human trafficking scheme that held its victims in forced labor on cleaning crews in and around Philadelphia, Pennsylvania.

Just over a year ago, we initiated a pilot project of multi-agency Anti-Trafficking Coordination Teams (ACTeams) in six judicial districts in the United States. These task forces will prove the value of interagency coordination to address the scourge of human trafficking. In addition to the ACTeams, each U.S. Attorney now participates in some form of anti-trafficking task force.

In addition to our own federal prosecutions, the department’s grant making components are funding state and local law enforcement agencies and victim services organizations to support multidisciplinary, victim-centered task forces dedicated to investigating trafficking crimes and providing culturally-competent assistance to victims.

By taking a multi-disciplinary approach to combating human trafficking and working with our federal, state local and nonprofit partners we can ensure that victims obtain the services that they need and that offenders are prosecuted and sentenced to lengthy jail sentences.

HUMAN TRAFFICKING IN CALIFORNIA

FROM: U.S. DEPARTMENT OF LABOR

Cracking Down on Traffickers

With California stakeholders convening Nov. 16 to discuss a sobering new report about the problem of human trafficking in the state, Secretary Solis appeared with state Attorney General Kamala Harris to discuss the administration's commitment to fight what President Obama has called "modern-day" slavery. In a keynote address at the University of Southern California, Solis outlined department-led efforts to train wage and hour investigators to spot warning signs of trafficking and help survivors recover lost wages and find employment to get back on their feet. She also reviewed efforts by the Bureau of International Labor Affairs to combat forced labor and the trafficking of children around the world. She noted that the department is part of a multi-agency anti-trafficking coordination team in Los Angeles and shared stories of efforts to partner with law enforcement to put traffickers behind bars. "We have to change the perverse calculus of gangs and smugglers who believe the rewards of trafficking outweigh the criminal risks," Solis said. "Only by working together can we bring these criminals to justice. Only by working together can we give their innocent victims the courage to escape and start over."

HOLIDAY RETAIL CROWD CONTROL AND WORKER SAFETY

Shopping Mall Photo Credit:  Wikimedia Commons

FROM: U.S. DEPARTMENT OF LABOR

US Labor Department's OSHA encourages retailers to provide crowd management measures to protect workers during major sales events

WASHINGTON — The U.S. Department of Labor's Occupational Safety and Health Administration is encouraging retail employers to take precautions to prevent worker injuries during Black Friday and other major sales events during the holiday season.

In 2008, a worker was trampled to death while a mob of shoppers rushed through the doors of a large store to take advantage of an after-Thanksgiving Day Black Friday sales event. OSHA recommends that retailers follow certain safeguards against this type of tragedy.

"Crowd control and proper planning are critical to preventing injuries and deaths," said Dr. David Michaels, assistant secretary of labor for occupational safety and health. "OSHA urges retailers to adopt a crowd management plan during the holiday shopping season that includes a few simple guidelines."

Crowd management plans should include:
On-site trained security personnel or police officers.
Barricades or rope lines for pedestrians that do not start right in front of the store’s entrance.
Implementing crowd control measures well in advance of customers arriving at the store.
Emergency procedures in place to address potential dangers.
Explaining approach and entrance procedures to the arriving public.
Not allowing additional customers to enter the store when it reaches its maximum occupancy level.
Not blocking or locking exit doors.

U.S. UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING NOVEMBER 10, 2012

Fire Sation Coat Rack.  Credit:  U.S. General Services Administration.

FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA

In the week ending November 10, the advance figure for seasonally adjusted initial claims was 439,000, an increase of 78,000 from the previous week's revised figure of 361,000. The 4-week moving average was 383,750, an increase of 11,750 from the previous week's revised average of 372,000.

The advance seasonally adjusted insured unemployment rate was 2.6 percent for the week ending November 3, an increase of 0.1 percentage point from the prior week's revised rate. The advance number for seasonally adjusted insured unemployment during the week ending November 3 was 3,334,000, an increase of 171,000 from the preceding week's revised level of 3,163,000. The 4-week moving average was 3,254,500, an increase of 17,750 from the preceding week's revised average of 3,236,750.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 466,348 in the week ending November 10, an increase of 104,548 from the previous week. There were 363,016 initial claims in the comparable week in 2011.

The advance unadjusted insured unemployment rate was 2.3 percent during the week ending November 3, an increase of 0.1 percentage point from the prior week's revised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,933,855, an increase of 159,551 from the preceding week. A year earlier, the rate was 2.5 percent and the volume was 3,177,477.

The total number of people claiming benefits in all programs for the week ending October 27 was 4,977,808, a decrease of 100,423 from the previous week. There were 6,773,260 persons claiming benefits in all programs in the comparable week in 2011.

Extended Benefits were only available in New York during the week ending October 27.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,544 in the week ending November 3, a decrease of 415 from the prior week. There were 2,649 initial claims filed by newly discharged veterans, a decrease of 7 from the preceding week.

There were 18,400 former Federal civilian employees claiming UI benefits for the week ending October 27, a decrease of 1 from the previous week. Newly discharged veterans claiming benefits totaled 38,932, a decrease of 609 from the prior week.

States reported 2,085,605 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending October 27, a decrease of 32,570 from the prior week. There were 2,935,466 persons claiming EUC in the comparable week in 2011. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending October 27 were in Alaska (4.5), Puerto Rico (3.9), California (3.0), Oregon (3.0), Pennsylvania (3.0), Virgin Islands (2.9), Arkansas (2.7), Nevada (2.7), New Jersey (2.7), Illinois (2.6), New York (2.6), and North Carolina (2.6).

The largest increases in initial claims for the week ending November 3 were in Pennsylvania (+7,766), Ohio (+6,450), New Jersey (+5,675), Michigan (+2,373), and Connecticut (+1,783), while the largest decreases were in California (-8,149), New York (-2,241), Florida (-939), Georgia (-913), and Indiana (-603).

A $220 MILLION PAYMENT GOING TO SETTLE EMPLOYEE BENFIT PLAN CLAIMS INVOLVING MADOFF PONZI SCHEME

FROM: U.S. DEPARTMENT OF LABOR
NEW YORK — The U.S. Department of Labor today announced a settlement that includes the payment of nearly $220 million to compensate employee benefit plans and other investors that suffered losses through investments in Bernard L. Madoff's Ponzi scheme. The settlement is pending approval by the U.S. District Court for the Southern District of New York and resolves department litigation, actions brought by New York's attorney general, and several private lawsuits and class actions brought on behalf of plans and other investors that invested with Madoff. The settlement was reached with Ivy Asset Management LLC, J.P. Jeanneret Associates Inc., Beacon Associates Management Corp., Andover Associates Management Corp., and their current and former owners and officers.

"The settlement agreement we're announcing today provides a measure of justice for those Americans who worked hard to prepare for their retirement and then saw hoped-for stability disappear," said Secretary of Labor Hilda L. Solis. "My department is committed to ensuring that workers and retirees receive the benefits they've earned and deserve. If approved by the court, this settlement, combined with expected payments from the Madoff bankruptcy estate, will allow worker benefit plans impacted by Bernard Madoff's illegal and reprehensible scheme to recover all, or nearly all, of the money they invested with him."

"Today's settlement brings accountability for one of the greatest financial frauds in American history and justice to defrauded investors. We have recovered over $210 million for the victims who were harmed as a result of the world's most notorious Ponzi scheme," said New York Attorney General Eric Schneiderman. "Ivy Asset Management violated its fundamental responsibility as an investment adviser by putting its own pecuniary interests ahead of the interests of its clients. An investment adviser should apprise its clients of risks, but Ivy deliberately concealed negative facts it uncovered in its due diligence of Madoff in order to keep earning millions of dollars in fees. As a result, its clients suffered massive and avoidable losses."

The department sued Ivy, Jeanneret, Beacon, Andover and their owners and officers Oct. 21, 2010, for alleged violations of the Employee Retirement Income Security Act. The suit alleged that they breached their fiduciary duties to a number of benefit plans by recommending, making and maintaining investments with Madoff, thus losing hundreds of millions of dollars in assets needed for the pension and health benefits of thousands of workers.

"Nothing can make up for the years-long agony that plan administrators and participants, and individual investors were put through by these defendants and Madoff," said Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi. "But this settlement should go a long way toward making victims financially whole and, hopefully, closing a painful chapter for many workers and families."

Ivy served as the investment adviser for Jeanneret, Beacon and Andover, and introduced those parties to Madoff. The suit alleged that Ivy misrepresented and concealed doubts and suspicions about Madoff, including the belief that no investment with Madoff was justified. The suit further alleged that Ivy concealed its suspicions because the investments made by Jeanneret, Beacon, and their plan clients and other investors generated enormous fees for Ivy and contributed significantly to the assets under Ivy's management. The department alleged that Ivy made the decision not to sacrifice those financial benefits by disclosing the true nature of its doubts about Madoff, especially because management did not think the company could escape legal liability for those investments.

Jeanneret served as the investment manager for more than 70 plans that invested with Madoff through several methods, including its own fund of funds, starting in 1991. The department's suit alleged that the company and its principals made material misrepresentations and failed to disclose material facts to their ERISA-covered plan clients that invested with Madoff. These included failing to disclose that Ivy had informed Jeanneret that it was unable to perform due diligence on Madoff. Jeanneret also allegedly failed to disclose to its clients that it had entered into a new agreement with Ivy in 2007 that eliminated Madoff from Ivy's due diligence responsibilities, and failed to disclose that Ivy recommended Jeanneret reduce plan client and investor exposure to Madoff.

Additionally, the suit alleged that Jeanneret largely ignored Ivy's recommendations to reduce its clients' Madoff investments and failed to take prudent steps to investigate irregularities about Madoff and his purported trading, while taking substantial amounts in fees as the investment manager for the plans. Finally, Jeanneret and its owners and officers allegedly violated ERISA based on their fee arrangement, which provided for higher fees for Madoff investments than for other types of investments. This arrangement gave them the ability to set their own compensation by exercising their discretion to recommend and make Madoff investments for plans.

Beacon and Andover were the investment managers for the Beacon and Andover funds, which invested heavily with Madoff starting in the early 1990s. Many employee benefit plans, including Jeanneret's clients, invested in the Beacon and Andover funds. Like Jeanneret, the department alleged that the two fund companies and their owners and officers largely ignored Ivy's recommendations to reduce their Madoff investments and failed to take prudent steps to investigate Madoff, while still taking substantial amounts in fees as the investment managers for the Beacon and Andover funds. The suit also charged Beacon, Andover and their principals with making misrepresentations and failing to disclose to their plan investors that Ivy had informed them it was unable to perform due diligence on Madoff, and that Beacon and Andover had entered into agreements with Ivy that eliminated Madoff from Ivy's due diligence responsibilities.

Under the settlement agreement, Ivy and its principals have agreed to pay a total of $210 million. Jeanneret and its owners, John P. Jeanneret and Paul Perry, have agreed to pay $3 million. Beacon and Andover and their owners, Joel Danziger and Harris Markhoff, have agreed to pay $3.5 million and relinquish a claim of more than $3.3 million for management fees.

The settlements resulted from investigations conducted by the New York and Boston regional offices of the Employee Benefits Security Administration, an agency of the Labor Department. Litigation was conducted by the Plan Benefits Security Division of the department's Office of the Solicitor in Washington, D.C.

Workers in employer-sponsored health and retirement benefit plans who feel that they have been denied a benefit inappropriately, or have questions about benefits laws, can contact an EBSA benefits adviser by visiting http://www.askebsa.dol.gov or calling 866-444-EBSA (3272).