EEOC files harassment lawsuits against Caterpillar
Companies with succession plans perform better
Jobless claims remain below 400,000
UAW, Dana form partnership
Gillette files patent lawsuit against Energizer Holdings
NAM, FedEx bring shipping to association members
Tower Automotive CFO resigns
GM recalls electric cars, but consumers remain hopeful
Rubbermaid cuts 170 jobs in Freeport, Ill.
Johnson & Johnson, OSHA to reduce ergonomics injuries
Machine tool consumption increases in June
Ford issues recall on SUVs, police cars
Harrington Hoists receives A.W.R.F. safety award
Defense Department revokes janitor's security clearance

The first lawsuit, filed against the company's Joliet, Ill., factory, said that white workers whistled at black employees "as if they were dogs." When complaints were made, nothing was done, according to the lawsuit.

The second lawsuit, filed against the company's Aurora, Ill., factory, alleged that one male supervisor made inappropriate sexual advances, including propositions and touching. When the women made complaints, they were fired, according to the lawsuit.

The lawsuits ask for punitive and compensatory damages, implementation of correcting measures and injunctions barring future discrimination.

Caterpillar said it does not condone atmospheres of racial or sexual harassment, will not stand for retaliation on these matters and will fight the lawsuits.

back to top

****************************************************************************

Companies with succession plans perform better
Forty-five percent of companies with more than $500 million in sales have no real CEO succession program despite executives' praise for succession planning. 

According to a report from Cutting Edge Information, companies that emphasize leadership development outperformed others by 15 times over the past 60 years.

Succession Planning for Results features innovative practices from more than 35 companies across 20 industries. It reveals the human resources metrics, strategies and tactics top companies use to drive succession planning and build excellent leaders for the future.

"Roughly 67 percent of organizations do not actively use human resources programs that accurately identify employee competencies," said Cutting Edge Information CEO Jason Richardson. "At the same time, companies across all industries are desperately seeking proven, visionary leaders for all organizational levels."

The report shows how leading companies including General Electric, Pfizer, AT&T, Anheuser-Busch, IBM, and American Express build succession plans, review corporate bench strength and implement their plans for long-term results.

For example, one manufacturer holds a series of annual meetings to promote leadership development. The CEO holds 12- to 14-hour sessions with each business unit to align employee strengths with key strategic needs. Such efforts have transformed the company into a renowned academy company that regularly provides executives to other organizations.

The key findings of the report show how to:
• identify corporate priorities and values for leadership development;
• build a succession plan that addresses all organizational needs;
• execute the succession plan with discipline and ongoing commitment;
• focus on top officers to build talented, ethical company leadership; and
• conduct in-depth personnel reviews to promote employee development.

back to top

****************************************************************************

Jobless claims remain below 400,000
New claims for unemployment insurance increased by 2,000 to 398,000 for the week ended Aug. 9, according to the Labor Department.  This marks the fourth straight week claims have held below 400,000.

Economists generally refer to the 400,000 mark as the difference between a weak labor market and a stable one.

The four-week moving average declined by 4,250 to 394,250, also a stronger showing. The four-week average is considered more reliable because it smoothes out week-to-week volatility.

The number of continuing jobless claims -- those more than two weeks old -- declined by 6,000 to 3.66 million for the week ended Aug. 2, the latest week for which data are available.

back to top

****************************************************************************

UAW, Dana form partnership
Dana Corporation entered into a partnership agreement with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). 

The agreement is expected to benefit both Dana and the UAW by contributing to business growth, improved productivity, enhanced operational cost-efficiency, and continued workforce opportunities and options. Terms of the agreement were not disclosed by agreement of the parties.

"Both Dana and the UAW recognize that dramatic changes in the domestic automotive market have created new competitive challenges for automotive component suppliers," said Nick Cole, the company's senior executive with responsibility for labor relations. Cole is also president of Dana's Heavy Vehicle Technologies and Systems Group.

The partnership agreement establishes collective bargaining and representation principles for Dana's U.S. automotive assembly and manufacturing facilities serving DaimlerChrysler AG, Ford Motor Co. and General Motors Corp. The agreement also establishes a cooperative approach with the goal of ensuring that labor agreements negotiated by the parties are competitive for Dana and its people.

"This agreement is a result of lengthy discussions with the UAW, during which both parties acknowledged the positive impact our relationship can have in maximizing Dana's competitive capabilities to successfully address marketplace challenges," said Cole. "Specifically, we are focused on achieving greater productivity, improved quality, and enhanced collaboration and coordination on the behalf of Dana's customers.

UAW president Ron Gettelfinger said the union was looking forward to a positive partnership with Dana and commended the auto supplier's leadership in developing a "proactive strategy that respects the rights of employees.”

Workers at nine Dana auto parts plants are currently UAW members. Initial terms of the new partnership agreement will cover additional Dana plants throughout the United States. At those plants, the company will recognize union representation rights based on majority status. Where majority status is recognized, Dana and the UAW also agreed to binding arbitration if a first contract is not reached within six months.

“We’re going to focus on quality, productivity and adding value for Dana’s auto industry customers,” said Gettelfinger. “A cooperative relationship that respects workers’ rights can build trust and stability in the workplace. That’s a tremendous advantage in today’s rapidly changing, globally competitive business environment.”

back to top

****************************************************************************

Gillette files patent lawsuit against Energizer Holdings
Gillette Co. filed a lawsuit against Energizer Holdings Inc. in an attempt to block its release of the Schick Quattro Razor, according to a Reuters report. Gillette claims that the new razor infringes on patents it holds for its Mach3 three-bladed razor.

"Energizer is deliberately attempting to capitalize on the superior performance of Mach3, the world's No. 1 shaving product," Gillette spokesman Eric Kraus told Reuters. "It's hard to imagine that progressive blade geometry was included in the Quattro product by accident."

Schick planned to release the four-bladed Quattro razor in September. Reuters said that Energizer had not heard of the lawsuit and would not comment.

back to top

****************************************************************************

"As with all good business agreements, this one adds considerable value for both the association and FedEx," said NAM vice president for marketing and business development David Walker. "FedEx offers our member companies more economical access to its world-class air, ground and international shipping services. The NAM gives FedEx access to our roughly 14,000 members, which represent an attractive mix of small and medium-size businesses as well as global companies."

The addition of FedEx to the NAM's award-winning Freight Alliance Program fills the last significant gap in a portfolio of shipping services. NAM members will now enjoy member discounts with FedEx Express and FedEx Ground.

"Even a small company like mine stands to benefit from the NAM-FedEx deal," said Fletcher Steele, an NAM board member and president of the Pine Hall Brick Company in Winston-Salem, N.C. "We'll save an average of $4,000 to $5,000 every year by taking full advantage of this new alliance."

back to top

****************************************************************************

"We appreciate the contributions that Ernie has made during his time with us," said Tower Automotive president and CEO Dug Campbell. "He has given us a strong balance sheet focus from an operations perspective, and we wish him well in his future endeavors. We believe the depth of our current finance team is sufficient to manage during this transition."

The company has launched a search for a successor for Thomas.

back to top

****************************************************************************

He's sad, but hopes to keep driving electric cars with the help of electric vehicle pioneer ZAP.

He recently drove the EV1 about 60 miles from Oakland to Santa Rosa, Calif., to meet with ZAP CEO Steve Schneider about ordering a replacement. Established in 1994 as a manufacturer of electric bicycles and scooters, ZAP announced this year that it will enter the electric car market. 

The company expects to begin delivering neighborhood electric cars this fall and is negotiating a business plan to introduce freeway electric cars. Ferris placed an order with ZAP for one of its freeway-capable electric cars when it becomes available. To learn more about ZAP's electric cars, visit its Web site.

Last fall, GM ordered lessees of the roughly 1,100 EV1s to return their electric vehicles. The automaker said it decided to reclaim the EV1s after marketing efforts had failed, but many of its customers disagree, staging various protests to the recall. In July, 15 EV1 lessees conducted a mock funeral at a Hollywood cemetery to lament the car's demise.

"The EV1 is not a marketing failure," said Ferris. "From driving one for three years, I believe it is one of the most advanced, exciting automobiles to ever come off the assembly line. Contrary to what the automakers are telling us, I know now that electric transportation is a reality. For the past three years I have not needed gas, tune-ups, smog tests, muffler repairs, spark plug replacement, air filters, oil filters -- the list goes on. With electrics, the only regular maintenance that I've had to do, other than plugging in, is keep air in the tires."

back to top

****************************************************************************

Rubbermaid cuts 170 jobs in Freeport, Ill.
Newell Rubbermaid said it will cut 170 jobs from its drapery hardware manufacturing business Levolor-Kirsch and move production to Mexico over the next 12 to 18 months, according to the Associated Press.

The company said it "conducted an extensive study of all options prior to making this difficult decision, which was based on continuing to be competitive in the marketplace."

The move happened about a week after reporting a decline in second quarter profits of 17 percent. The company also had to lower its financial estimates for the remainder of the year.

back to top

****************************************************************************

Johnson & Johnson, OSHA to reduce ergonomics injuries
The Occupational Safety and Health Administration (OSHA) signed an agreement with Johnson & Johnson to help develop and identify best practices that will reduce ergonomics injuries in the workplace.

The three-year partnership will provide OSHA with first-hand knowledge of Johnson & Johnson's successful ergonomics programs.

"We know that Johnson & Johnson recognizes the seriousness of musculoskeletal disorders in their workforce," said OSHA administrator John Henshaw at the signing ceremony. "We're delighted that they want to work with us in a cooperative manner that ultimately will benefit thousands of America's workers. We look forward to the months ahead and the results that will be achieved through our new relationship."

The partnership's foundation is built upon four goals: 
• reduce the incidence and severity of musculoskeletal disorders (MSDs) at the company's operating facilities; 
• identify and communicate an effective process to develop and implement successful ergonomics programs; 
• identify at minimum three Johnson & Johnson ergonomics best practices and related training in the company's pharmaceutical, medical devices and consumer goods divisions; and 
• share the company's best practices in ergonomics with other facilities throughout the company, other industries and the public.

Under the terms of the partnership, Johnson & Johnson will develop a written process to address ergonomics hazards in the workplace, covering management commitment and employee involvement, worksite analysis, hazard prevention and control, and training.

OSHA will also work with the company to develop an ergonomics protocol for assessing compliance requirements, and for communicating best practices through various compliance assistance tools, training and other outreach programs.

Various incentives for participating worksites include maximum allowable penalty reductions for ergonomics and other violations that are abated in a timely manner, six month deferral in programmed inspections, and ergonomics technical assistance to assist and advise on specific issues.

back to top

****************************************************************************

Machine tool consumption increases in June
June U.S. machine tool consumption totaled $244.6 million, up 67.1 percent from May and up 3.3 percent from the total of $236.8 million reported for June 2002, according to the American Machine Tool Distributors' Association (AMTDA) and the Association For Manufacturing Technology (AMT).

With a year-to-date total of $952.9 million, 2003 is down 17.9 percent compared to the same period in 2002.

These numbers and all data in this report are based on the totals of actual data reported by companies participating in the United States Machine Tool Consumption (USMTC) program.

"June orders were up 3 percent from June 2002, the first growth in a monthly year-on-year comparison since November 2000," said AMT president Albert W. Moore. "A single instance does not constitute a trend but a trend must have a starting point. Thanks to the expensing provisions in President Bush's jobs and economic growth tax relief bill, this year is looking more promising."

The report, jointly compiled by the two trade associations representing the production and distribution of manufacturing technology, provides regional and national U.S. consumption data of domestic and imported machine tools and related equipment.

June machine tool consumption in the Northeast region rose to $32.4 million, up 68.4 percent compared to May's $19.2 million, and up 15.4 percent compared to June a year ago. First half 2003 consumption totaled $121.4 million, off 24.2 percent compared to 2002 at the same time.

Totaling $79.8 million, June machine tool consumption in the Southern region was 241 percent higher than May's $23.4 million, and up 43.5 percent from June 2002. Machine tool consumption for the first half of 2003 rose to $218.4 million, 5.9 percent higher than the comparable figure for 2002.

Midwestern machine tool consumption in June totaled $81.6 million, 37 percent more than May's $59.5 million but 5.8 percent less than the total for June a year ago. With a first half total of $367.1 million, 2003 is 20.3 percent behind first half 2002.

At $32.3 million, Central region June machine tool consumption was up 10.4 percent compared to May's $29.3 million, but off 21.5 percent compared to last June. With a total of $153.9 million, 2003 consumption lags 2002 at the same time by 21.1 percent.

June machine tool consumption in the Western region rose to $18.5 million, up 24 percent from May's $14.9 million, but down 27.1 percent from June a year ago. A first-half total of $92.1 million falls 33.5 percent short of the comparable figure last year.

back to top

****************************************************************************

Ford issues recall on SUVs, police cars
Ford Motor Co. recalled more than 1.7 million vehicles in the United States because of safety concerns, according to a Reuters report.

The automaker said it is recalling 1.68 million Ford Explorers and Mercury Mountaineers, model years 1998-2001, and Explorer Sport and Sport-Tracs, model years 2001-2002. Ford said the high seat-backs could fracture a bolt in the seat due to pressure, causing the seat to suddenly recline.

About half a million of those autos are also being recalled for problems with their cruise control. Apparently, a bad cable makes it difficult to shut the cruise control off once in operation.

Both problems will be repaired for free.

Ford also recalled more than 37,000 model year 2003 Crown Victoria police cars and taxis. A problem with the steel wheels on the cars may cause the tires to lose air rapidly under heavy-duty stress.

None of the problems with any of the autos under recall caused injuries.

back to top

****************************************************************************

Harrington Hoists receives A.W.R.F. safety award
Harrington Hoists vice president of sales Carlo Lonardi accepted the Associated Wire Rope Fabricators 2003 Safety Award at the A.W.R.F. annual spring convention in Washington, D.C.

Harrington Hoists was recognized as winner of this year's award for offering multiple safety training classes to its employees and for having limited OSHA reportable injuries.

The training classes included:
• personal protective equipment;
• lock-out/tag-out procedures;
• lift truck operators safety course;
• posture and body mechanics;
• basic preventative disease control;
• hazardous communication;
• indoor crane class;
• ladder safety class;
• basic fire extinguisher training;
• OSHA 200 reporting accidents; and
• walking and working surfaces.

back to top

****************************************************************************

Defense Department revokes janitor's security clearance
The Defense Department revoked security clearance from Lockheed Martin janitor Michael Lynch because of his financial struggles, according to a report on FoxNews.com.

Though his coworkers and bosses regard him as a dedicated employee, honest and conscientious, the 19-year Lockheed veteran is now regarded as a security risk in the eyes of the Defense Department.

The department's policy says that "an individual who is financially overextended is at risk of having to engage in illegal acts to generate funds." Due to a streak of back luck and what Lynch's lawyer James Katz calls a bad decision, Lynch was defined by those standards.

In 1981, he had surgery to remove a brain tumor, leaving him unemployed. After he recovered, he went to work for the company which was purchased by Lockheed Martin and has been there ever since.

But, in the early '90s, Lynch's wife quit working to help their blind daughter, Christy, with schoolwork. Shortly thereafter, the family filed for bankruptcy. Lynch's wife quit work again when their daughter went to college at Temple University. Lynch decided to pay their daughter's tuition instead of paying city wage taxes. Lynch is also being investigated for lying about the bankruptcy on his security clearance application.

In the face of all this trouble, Lynch paid almost $7,000 toward his tax debt and according to his attorney, "is in better financial shape than he's ever been."

Lynch decided to fight his battle in court. Though Lockheed promised him a job at the factory, he wants to keep his security clearance as a matter of pride.

back to top

****************************************************************************

Industry News archives
Industry News for this week

Copyright 2002 Pfingsten Publishing L.L.C. All rights reserved.