Tag Archives: employment

Business/Economics, Idaho, International, U.S.

Global Economic War, Global Food Crisis, What Economic Recovery? Big Potato producer Simplot to close plants, laying off 800 east Idaho workers (updated with pictures)

In the name of efficiency, and international competition, J.R. Simplot is building a new potato processing plant.  It will use only 250 employees.  The problem is that the new highly efficient Simplot potato factory will replace three existing plants (in Nampa, Caldwell & Aberdeen), resulting in 800 Idahoans losing their jobs.  That’s a net loss of 550 jobs.

East Idaho doesn’t have a big population so the job loses will hit hard: “It’s going to have a negative impact on Nampa and Caldwell and the whole country. We’re encouraged that they will remain in Caldwell, but certainly concerned about the overall impact of job loss.”-Steve Fultz, Caldwell Economic Development Council

J.R. Simplot officials say it’s necessary to build such an efficient factory, because global competition in the food market is getting tougher.  In fact potato prices for this years potato season have fallen to the point that Idaho farmers will be lucky to break even.

At least Simplot employees have been given a decent heads up; it’ll be at least two years before the new super efficient potato processing plant will be completed.

J.R. Simplot has been streamlining operations in Idaho since the 1990s.  Simplot’s corporate headquarters used to be in Chubbuck, Idaho.  But they closed it down and moved to Boise right after I moved to Chubbuck.

Their Chubbuck HQ was replaced with the TJ Maxx/IHOP strip mall.

Former location of J.R. Simplot Corporate HQ, Chubbuck, Idaho

The metal awnings/canopies covering the Simplot HQ entryway can now be seen in front of the Pocatello City Hall.

Ex Simplot Chubbuck HQ canopies adding charecter to the otherwise drab Pocatello City Hall

 

Business/Economics, International

What Economic Recovery? Japanese needing welfare help hits record levels: 2.05 million

The number of people in Japan, who need help with basic needs keeps going up month after month.  The Japanese Welfare Ministry reports that in July welfare recipients hit a record 2.05 million.

A big jump is in ‘working age households’ (people who’re less than 65 years of age).  That category receiving welfare is now four times higher than 10 years ago.

The Welfare Ministry says since 1995 more people are needing welfare help. However, current increases in welfare recipients are due directly to the 2007/08 credit crisis.  Japanese officials say for the past three years welfare rolls have been increasing by an average of 10,000 people per month!

Business/Economics, Idaho, U.S.

What Economic Recovery? Government Incompetence: Confusing & conflicting plans to “save” United States Postal Service, thousands will still lose their jobs

On November 2 the U.S. Senate presented a plan to “save” the USPS.

That plan would pay back U.S.$7 billion of the funds Congress stole, I mean, that Congress forced the USPS to overpay in retirement funds.  However, the $7 billion is to be used to buy out employees (a nice way of laying people off, as many as 100,000 employees will lose their jobs in the buy out).  It would also require a two year study before ending Saturday deliveries. The draconian retirement fund payment schedule would be ended as well (it’s the main reason the USPS is in financial trouble).

Then on November 7, the U.S. Postmaster General announced that he will officially present plans to “save” the USPS on November 21!

His plan will include laying off thousands of workers, closing offices and sorting facilities, and ending Saturday deliveries.  He’ll make his official announcement at the November 21, National Press Club Speakers luncheon in Washington DC.

Local Idaho postal workers told me what ever plan is official announced that it’s basically a sham, what’s going down with the USPS is a “done deal”.

 

 

Business/Economics, Idaho, U.S.

What Economic Recovery? Idaho tax revenues for October fall short

The Idaho Division of Financial Management reported that October tax revenues were $1.6 million short of what was needed.

State officials were hoping for $210.6 million.  So far for the fiscal year 2012, overall tax revenues are $10.8 million below what’s hoped for!  Amazingly officials still think they’ll finish the 2012 fiscal year with a surplus!?

The biggest drop was seen in sales tax revenues, to the tune of $4.1 million!  So far Idaho sales tax revenues are short by $14 million!  Sales taxes are a good way to gauge how well your economy is doing, and it doesn’t look too good.

 

 

 

Business/Economics, International, Technology, U.S.

What Economic Recovery? Toyota to cut production by at least 30%, blaming floods

First the March 11 disasters in Japan, now the floods in Thailand.  Toyota says they can’t get enough parts to build their cars.

Toyota and Honda are suffering major parts supply problems (Honda already cut North American production by 50%).

Toyota is cutting back on worldwide production.  November 7, according to NHK, Toyota will be forced to cut production by at least 30%.

Toyota was trying to recover from the March 11 disasters, and had hoped to produce 330,000 vehicles in Indonesia, for the month of November.  Now they are hoping they can produce 230,000.

Blame it on the incompetent ‘just in time’ parts supply policy.

 

 

Business/Economics, International, Technology, U.S.

Occupy the World, Corporate Incompetence: Camera maker Olympus never reported losses, for at least a decade!

November 8, scandal for Japanese owned camera and industrial equipment maker Olympus: They deliberately kept losses off their finance books since the 1990s.

More proof that corporations can’t be trusted. The scandal wasn’t the result of Olympus officials confessing, it was the result of a third party investigation!

The losses come from securities investments.  Company officials tried to cover up the losses by blaming it on consulting fees, and the purchase of three smaller companies.

Olympus stock is now crashing on the Japanese stock market.  Olympus Vice President Hisashi Mori was fired for his involvement in the cover up.

 

Business/Economics, International, U.S.

Occupy Wall Street, Class War: Latest study says Big Corporations do not pay their fare share of taxes

Not only are many of the biggest corporations reporting big profits, they’re paying small taxes.  The official tax rate for corporations is supposed to be 35%, but the latest study shows the average effective tax paid is about 18.5%.

Some corporations pay no taxes, and a handful actually have negative taxes!

280 companies in the Fortune 500, that were profitable for all three years between 2008 and 2010, were studied.

111 companies paid effective tax rates of less than 17.5% over the three-year period.  98 paid a rate between 17.5% and 30%.

The average rate is 18.5%.  But wait, there’s more.  Some companies paid zero taxes!  30 actually owed less than nothing over the three years!

Two of those corporations are Pepco Holdings and General Electric.  Over the 2008 to 2010 period Pepco made $882 million in profits, but had a tax rate of -57.6% (yes, put a negative sign in front of that)!   But here’s a bigger shocker: GE earned $10.5 billion, with a tax rate of –45.3%!   How do you make big corporate profits, and then effectively have the government owe you money?

Lobbyists hired by Corporate America convince your elected lawmakers to create more corporate tax breaks.

The study was done by Citizens for Tax Justice, and the Institute on Taxation and Economic Policy.

Business/Economics, International, U.S.

Corporate Incompetence: WalMart refuses to pay rent in China, since 2002, gets shut down for selling bad meat. Think your U.S. WalMart stores are bad?

WalMart is in trouble in China, because it hasn’t paid rent since 2002, and it lies about what it sells.

According to Chinese media, in 2002 WalMart signed a 15 year lease contract with the Wanguo Shopping Plaza in the northeastern coastal city of Dalian.  Problems occurred with the timely development of the property, and WalMart decided to move across the street.  The problem is that they signed a 15 year contract.

Wanguo Shopping Plaza has sued WalMart for back due rent.  Chinese courts have ruled that the lease contract is still binding.

WalMart had claimed that Wanguo Shopping Plaza lost its business license, and that the contract was terminated in 2007.  WalMart also claimed they paid about two years worth of rent.  The courts found that Wanguo Shopping Plaza never lost its license, there is no evidence the contract was terminated, and that WalMart paid a little more than one year of rent.

This is just the latest in bad things happening to WalMart in China.  In October, 13 Wal-Mart stores were shut down for 15 days for selling incorrectly labelled pork products.  WalMart had previously been penalized 21 times since 2006 for false advertising and selling expired food!

Business/Economics, International, U.S.

What Economic Recovery? Federal Reserve Bank revises growth forcast downward, blames Europe

No surprise, the U.S. Federal Reserve Bank revised its economic growth forecast downward.

Back in June the bank predicted U.S. growth at 2.9% (which is still bad, it needs to be above 3% to be good).  Now they revised it downward by one percent, to 1.9%.  Can you say stagnation?

Federal Reserve Chairman Ben Bernanke said the expanding crisis in Europe has made the future of the U.S. economy increasingly unclear.

Business/Economics, International, Technology, U.S.

What Economic Recovery? Sony blames $2 billion loss on the United States & Europe, no more Sony TVs for you

On November 3, Sony announced that its television division is likely to post a record loss of about U.S.$2.2 billion for 2011.  That makes eight straight years of losses!

Sony is blaming poor sales in the United States and Europe.  This is more proof that the U.S. is no longer the market place for the World’s manufacturers.

Sony Executive Deputy President Kazuo Hirai says there is no sign of any economic recovery, and the company will revise downward its mid-term sales target by half.  Sony will also cut way back on TVs sold in Europe and the U.S.

Panasonic and Sharp say they will do the same.