February 13, 2009
Weekly Labor Report--February 13, 2009
1. December Unemployment Rises to 7.6%
Illinois state officials reported that the state's unemployment rate in December was 7.6%, the highest in over 15 years and a significant rise over November's 7.3% unemployment figures. It also represents a sizable increase in the last year, with the jobless rate in December 2007 significantly lower at 5.3%. The Chicago Tribune reports, "The state's construction sector took the biggest hit, shedding 13,400 workers and lowering construction employment to 233,700." Also hard hit was the manufacturing sector, which shed 5,200 jobs to close 2007. The state's unemployment rate ranked higher than the national average, which was 7.2% in December. Despite strong exports among some of the largest manufacturing companies, the spreading recession and credit crunch around the globe have weakened overseas markets. -Chicago Tribune (24 January 2009) http://www.chicagotribune.com/business/chi-sat-illinois-unemployment-jan24,0,6034347.story
2. Cat CEO Jim Owens forecasts further layoffs
Despite comments from President Barack Obama that passage of the stimulus bill would mean that earth-moving equipment manufacturer Caterpillar would be able to bring back some laid-off workers, company CEO Jim Owens expressed skepticism about that occurring. "The reality is we'll probably have to have more layoffs before we can start hiring again," Owens said without elaborating on a time frame or how many layoffs might be involved. 20,000 hourly and salaried employees have been laid off as a result of the recent recession. Speaking at Caterpillar's East Peoria complex, President Obama told company employees and executives in attendance that the $800 billion stimulus package would result in widespread infrastructure investments that would benefit the Peoria-based manufacturer. However, Owens stated that the stimulus would not bring about recovery for nearly a year, delaying recovery for Cat and other companies. Since more than half of Cat's sales comes from overseas, Owens believes that a $600 billion economic package in China might assist the company sooner than the US stimulus bill. --Chicago Tribune (12 February 2009) http://www.chicagotribune.com/news/chi-ap-il-obama-caterpillar,0,5924906.story
3. Szabo of Illinois in Running for Rail-Safety Position
Joseph Szabo, former state director for the United Transportation Union (UTU) in Illinois, is apparently being vetted by the Obama administration to lead the US Federal Railroad Administration, Bloomberg News reports. The FRA oversees various railroad issues such as health and safety, employees' hours worked, and the transportation of hazardous materials, Before working for the UTU, Szabo had worked as a freight-rail worker and a passenger-rail conductor. --Bloomberg News (9 February 2009) http://www.bloomberg.com/apps/news?pid=20601103&sid=af2IHis6ewIg&refer=us
4. 5,000 Workers, Supporters Rally in Granite City
Roughly 5,000 workers and their supporters rallied on behalf of laid-off steelworkers through the streets of Granite City, in a "Put America back to Work" march sponsored by the United Steelworkers of America (USWA) and many other unions. Beginning at a US Steel factory and continuing for a mile to the Amstead Rail foundry, the march drew many working, laid-off, and retired union members. According to the Alton Telegraph, "Various signs proclaimed 'Job One is Job Creation' and pleaded 'Re-open the mill so my dad can pay the bills.' Marchers chanted loudly, 'We are union!' Others answered, 'What do we want?' 'Jobs!' 'When do we want them?' 'Now!' --Alton Telegraph (10 February 2009) http://www.thetelegraph.com/news/steelworkers_23329___article.html/support_city.html
5. University of Illinois Considering Tuition Waiver Changes
The University of Illinois is currently mulling changes in its tuition waiver policy for graduate students, the Champaign-Urbana News Gazette reports. Currently, graduate students with at least a 25% teaching appointment receive a tuition waiver from the University. A recent proposal that the University of reviewing would raise the level at which graduate students would receive such a waiver to 33%. According to the News-Gazette, "Current graduate students have no need to worry, [Vice Provost Richard) Wheeler said. The UI would not put anything in place that would disrupt current students." Yet the Graduate Employees Organization (GEO) that represents graduate student employees, opposes the proposal. "From an academic perspective, it will have a big effect on the quality of education" at the university, said Michael Simeone, graduate student in English and member of the GEO. The proposal under debate is akin to "torpedoing quality departments" and could affect about 600 graduate employees, according to the organization. --Champaign-Urbana News Gazette (5 February 2009) http://www.news-gazette.com/news/education/2009/02/04/ui_considers_changes_to_tuition_waiver_policy
6. SEIU Official Resigns Amidst Improper Billing Charges
Byron Hobbs, executive vice-president of the Service Employees International Union (SEIU) Illinois-Indiana healthcare local union, has resigned amidst accusations that he improperly billed the International with over $9,000 in personal expenses. Hobbs is one of several SEIU officials around the country who have recently faced allegations of financial improprieties. According to the Los Angeles Times, "a spokeswoman for the Illinois-Indiana local, Brynn Seibert, said the union's handling of the allegedly improper charges showed "the system works." --Los Angeles Times (11 February 2009) http://www.latimes.com/news/local/la-na-union12-2009feb12,0,2653505.story
Posted on February 13, 2009 1:07 AM
