FORT WORTH, TEXAS
OTTAWA
The U.S. Justice Department expanded an investigatioin into Puerto Rican shipping Thursday, announcing a $14.2 million fine for a Florida-based company and a criminal charge against its former president.
Sea Star Line LLC agreed to the fine and a guilty plea to one felony count of conspiring to fix prices on cargo moving in and out of the U.S. island territory, the Justice Department said in a statement.
A federal grand jury in San Juan indicted the company’s former president and chief operating officer, Frank Peake, on a charge of conspiring to fix prices on Puerto Rico routes from late 2005 until April 2008. Peake, a New Jersey resident, is now a shipping company executive with a company affiliated with Sea Star.
Sea Star, based in Jacksonville, Florida, issued a statement apologizing to its customers, and noted the agreement provides that the Justice Department will not bring criminal charges against its parent companies, Saltchuk Resources Inc. and American Shipping Group Inc.
Sea Star employees engaged in the price-fixing scheme in violation of company policies, but the company is still responsible for the conduct under antitrust law, said Anthony Chiarello, President of American Shipping Group Inc.
“We extend sincere apologies to all of our loyal customers and the consumers who were affected by this conduct,” Chiarello said in the statement. “It was contrary to everything that Sea Star stands for and will not be tolerated in the future.”
He said by email that he was unable to answer questions because he was traveling.
David Oscar Markus, a lawyer for Peake, said his client denies wrongdoing and expressed confidence his client will be cleared of a charge that carries a maximum sentence of 10 years in prison.
“Frank is innocent. He is never going to do a day in jail because he didn’t do the things they said he did,” said Markus, based in Miami. “It’s a real shame that the government is wasting its resources on something like this.”
Peake is accused of meeting with unidentified others in his industry to allocate customers and set prices for freight services for government and commercial clients, according to the indictment.
As part of the agreement, which is subject to court approval, Sea Star admitted conspiring to set prices and rig bids between May 2002 and April 2008, according to court papers.
Last April, the investigation brought a $15 million fine for Horizon Lines LLC of Charlotte, North Carolina. Five former executives of Sea Star and Horizon have received fines and jail sentences stemming from the probe.
By day, Wade Brosz teaches American history at an A-rated Florida middle school. By night, he is a personal trainer at 24 Hour Fitness.
Brosz took the three-night a week job at the gym after his teaching salary was frozen, summer school was reduced drastically, and the state bonus for board certified teachers was cut. He figures that he and his wife, also a teacher, are making about $20,000 less teaching than expected to, combined.
“The second job was to get back what was lost through cuts,” said Brosz, a nationally board certified teacher. “It was tougher and tougher to make ends meet. I started personal training because it’s flexible hours.”
Second jobs are not a new phenomenon for teachers, who have historically been paid less than other professionals. In 1981, about 11 percent of teachers were moonlighting; the number has risen to about one in five today. They are bartenders, waitresses, tutors, school bus drivers and even lawnmowers.
Now, with the severe cuts many school districts have made, teachers like Brosz, who hadn’t considered juggling a second job before, are searching the want ads. The number of public school teachers who reported holding a second job outside school increased slightly from 2003-04 to 2007-08. While there is no national data for more recent years, reports from individual states and districts indicate the number may have climbed further since the start of the recession.
In Texas, for example, the percentage of teachers who moonlight has increased from 22 percent in 1980 to 41 percent in 2010.
“It’s the economy, primarily,” said Sam Sullivan, a professor at Sam Houston State University, which conducts the survey.
Rita Haecker, president of the Texas State Teachers Association, said cuts in education have forced many teachers to take furlough days. It’s an extra strain because, unlike in the past, many teachers are now the primary breadwinner, either because they are a single parent or their spouse is unemployed, Haecker said.
“It affects their morale in the classroom,” she said. “The last thing we want is our teachers worried about how they are going to pay their bills.”
The average salary for a public school teacher nationwide in the 2009-10 school year was $55,350, a figure that has remained relatively flat, after being adjusted for inflation, over the last two decades. Starting teacher salaries can be significantly lower; compared to college graduates in other professions, they earn more than $10,000 less when beginning their careers.
“I think people have felt the need to supplement their teaching salaries in order to have a middle class lifestyle,” said Lawrence Mishel, president of the Economic Policy Institute, which published a study this year concluding the average weekly pay of teachers in 2010 was about 12 percent below that of workers with similar education and experience.
The Organization for Economic Cooperation and Development, which collects data on student performance across the globe, advised the United States earlier this year to work at elevating the teaching profession in order to improve student performance. The recommendations included measures like raising the bar for who is selected to become a teacher, providing better training and better pay. In many nations where students outperform the U.S. in reading, math and science, including Japan and South Korea, teachers earn more than they do in the United States.
“International comparisons show that in the countries with the highest performance, teachers are typically paid better relative to others, education credentials are valued more, and a higher share of educational spending is devoted to instructional services than is the case in the United States,” the OECD report concluded.
While moonlighting isn’t unique to teachers, they do tend to have second or third jobs at a higher rate than other professionals. One researcher estimates their moonlighting rates may be four times higher than those of other full-time, college educated salaried workers.
Eleanor Blair Hilty, an education professor at Western Carolina University, said most teachers make around $5,000 through outside work. Yet when asked if they would quit if given a raise in the equivalent amount, most said no. Her conclusion: teachers are getting something more from their second job other than an extra paycheck.
“A lot of it has to do with what I think is wrong with the teaching profession,” Hilty said, noting that teachers have little autonomy and control over what and how they teach. “They found their moonlighting jobs to be satisfying.”
Policies on moonlighting vary by district; some have no written guidelines, while others merely advise teachers to ensure any outside work doesn’t interfere with their duties at school.
In North Carolina, a survey conducted in 2007 found 72 percent of teachers moonlight, whether it’s an after-school job or summer employment.
“There’s a culture of silence,” Hilty said. “Everybody knows that moonlighting goes on and they know it’s part of what teachers do but nobody likes to talk about it very much.”
Michelle Hartman, a language arts and science teacher at a Plantation, Fla., elementary school, is balancing two other jobs, one as an organist with the local Presbyterian church, playing at church services, weddings and funerals, and another doing janitorial work twice a week at her father’s accounting firm.
The single mother has a master’s degree in educational leadership and has been a teacher 15 years. But she says she cannot afford to leave any of her extra jobs, which she said brings in about $6,000 year, in addition to her $46,000 teaching salary.
“I’m tired some days,” Hartman said. “But no matter what, it doesn’t matter because I know I need to be there for the students.”
Yet working an extra job inevitably does take a toll. On top of their work in the classroom, teachers have to grade papers and plan lessons _ work they often do at home. One study on teachers who moonlight in Texas cited the case of a teacher who ended up grading papers at the restaurant where she worked. The same study found that all the teachers interviewed reported that moonlighting had a negative effect on their health. In the Texas survey, a majority said moonlighting was detrimental to their work in the classroom.
“Yes, they go 100 percent, but they’re still tired,” said Dave Henderson, a retired professor who worked on the study for many years.
Albert Ochoa, a middle school art and publications teacher in Austin, Texas, works at least five hours a night at UPS as a shipper, a job he’s had since graduating from college in 1977. Even though he is now toward the higher end of the teacher salary schedule, he said he cannot afford to quit either job.
He said he’d have to earn another $2,000 a month in order to support his wife, who is on medical disability, and son, and not work a second job. “I’ve had opportunities to go work full time at UPS and do other things,” Ochoa said. “But I enjoy what I do. I like teaching.”
Who feels like a panini?
Sorry, this column isn’t about the panini you eat, rather the one you are — that is if you are a member of the sandwich generation with aging parents or other family members who need assistance and children, often into their mid to late 20s, still partially or completely dependent financially.
In 2002, Statistics Canada estimated that 2.6 million Canadians between the ages of 45 and 64 had children under 25 living with them and approximately 27 per cent of them were also providing some kind of elder care. After the financial collapse and recession the trend has accelerated.
Many of my friends are being sandwiched, as am I. My youngest daughter, nearly 26, is deaf. She’s still at college and may require financial help for some time to come. Until recently, my parents also needed considerable care. My mother died in 2009 and, fortunately, my father is relatively healthy and able to live in a nice retirement home. But now and then, the needs of daughter and father collide with my own busy life and I feel pulled in a dozen directions.
Most of those sandwiched between two generations are baby boomers, the first of whom started collecting their old-age pension in 2011. The advancing wave of this group is bringing with it a whole set of new financial challenges. “My daughter and son have student loans of $42,000 between the two of them. Despite their best efforts they’re semi-employed and living in an expensive city (Toronto),” Helen, 59, emailed recently. Helen is widowed and lives in a small northern Ontario town where jobs are limited. “I have enough to retire in a couple of years but not if I help them, especially if their situations don’t improve pretty fast. But I can’t see turning my back on them.”
The choices being forced on the sandwich generation often leave the caregivers feeling damned if they do or don’t. Should I stop RRSP contributions to help my family? Do I postpone my retirement? Will my employer let me go if I take time off to care for my parents? Should I withdraw from my savings? Do I kick out my kids so I can downsize?
Many of the difficulties facing sandwiched boomers are magnified for entrepreneurs. Even with great employees the buck stops with the boss and stepping away is rarely a satisfactory option.
Winnipeg-based bestselling tax author and president of the Knowledge Bureau, Evelyn Jacks juggled a successful business while being the primary caregiver of two ailing family members and also involved with the care of two others. All four died over an 18-month period. “Caring for the sick and the dying is difficult and exhausting and so sharing the journey with your support network is very important,” she says in retrospect.
“A strategic, consistent and all-inclusive communications plan within the family is very important. When everyone stays in the loop in an orderly way — we used email a lot to cover all the time zones — everyone can seamlessly step in as required. It also means everyone needs to work hard to stay healthy — physically and emotionally — in very stressful times.”
Being sandwiched between the needs of two and sometimes three generations isn’t a new phenomenon. My parents brought “the grannies,” as we called them, from England while I was young. One drank like a fish and gave away money to whomever asked and the other frequently wandered off only to be found settled on someone’s porch happily singing “It’s a Long Way to Tipperary”.
But the extended care-giving facing the boomers is unique because this generation is so large, our parents are living longer and our children carry a far higher student debt load than past generations. According to a 2010 Vanier Institute of the Family Study, university graduates have $18,000 in student loans, not including family debt or lines of credit.
To compound the problem young adults are also earning less relatively. Statistics Canada figures show that the wages of those 20 to 34, across all levels of education levels declined significantly in the 1980s and the trend has continued to present day, though at a slower pace.
These financial and emotional stresses prompted Credit Canada, the country’s leading not-for-profit credit counselling charity, to choose the sandwich generation as the theme for its fifth Credit Education Week — part of November’s Financial Literacy Money, which kicks off on Nov. 14.
“Credit Canada has seen more and more people trying to support their children and aging parents who don’t have the income to support themselves while struggling to pay their own bills including their children’s education,” notes executive director Laurie Campbell.
Credit Education Week Canada has published a very useful magazine, The Sandwich Generation. Among some of the do’s and don’ts to avoid being crippled emotionally and financially:
1. Set up a power of attorney
2. Update wills and ensure health-care directives are in place
3. Consolidate the debts and assets of the elderly to make management simpler
4. Don’t bleed your own savings, especially RRSPs, or increase your debt load (except in the direst circumstances) for the young or the old
5. Don’t allow unemployed kids to hang out at home doing nothing.
6. Don’t excuse siblings or other relatives from their responsibility
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PetroChina Ltd., China’s biggest oil and gas company, saw its third-quarter profit jump 7.8 percent as higher crude oil prices and output helped to offset losses in its refining business.
The Beijing-based company reported Thursday a profit of 37.4 billion yuan ($5.9 billion) in July-September, compared with 34.7 billion yuan a year earlier.
PetroChina reported a refining loss of 41.5 billion yuan ($6.5 billion) as higher costs for imported crude oil outpaced the gains in prices for its products.
But weakness in the refining sector was offset by a 45 percent increase in crude oil prices over the same period a year earlier, to $103.78 per barrel. The company’s output in the first nine months of the year rose 5.1 percent, to 959 free credit score.3 million barrels of oil equivalent.
Like other Chinese energy and resource companies, it has actively sought access to resources overseas to help diversify its risks and ensure a steady supply of oil and gas needed to power China’s fast-growing economy.
PetroChina increased its refining by 10 percent in January-September, or about 2.7 million barrels a day. But it derives a larger share of its revenues from oil and gas production than rival Sinopec, which is mainly a refiner, helping to shield it from losses due to government controls on fuel prices.
President Barack Obama is targeting vital North Carolina and Virginia this week, as he kicks off a three-day bus tour that is as much about campaigning for his jobs bill as it is shoring up support in two southern states he wrested from Republican control when he won the White House.
Obama’s 2008 victories in North Carolina and Virginia were due in large part to the states’ changing demographics and his campaign’s ability to boost voter turnout among young people and African-Americans. But nearly three years after his historic election, the president’s approval ratings in both states are sagging, in line with the national trend.
A Quinnipiac University poll out earlier this month put Obama’s approval rating in Virginia at 45 percent, with 52 percent disapproving. The same poll showed 83 percent of Virginians were dissatisfied with the direction of the country. In North Carolina, Obama has a 42 percent approval rating, according to an Elon University poll conducted this month. Most national polls put Obama’s approval rating in the mid- to low-forties.
The president’s bus tour comes as the battle in Washington over his jobs plan enters a new phase. While Obama had demanded lawmakers pass the $447 billion measure in its entirety, Senate Republicans have blocked those efforts, leaving the president and his Democratic allies to fight for the bill’s proposals piece by piece.
Since announcing his plan for putting Americans back to work last month, Obama has been traveling the country trying to build public support for his initiatives. The president’s itinerary has focused heavily on swing states, underscoring the degree to which what happens with his job bill is linked to his re-election prospects.
Obama starts his bus tour with a speech in Asheville, N.C., Monday morning and he will speak again later that day at a high school in Millers Creek, N.C. He’ll also speak Tuesday at a community college in Jamestown, N.C., and make stops in the southern Virginia cites of Emporia and Hampton, before wrapping up the bus tour Wednesday at a firehouse in North Chesterfield, Va.
While Obama won handily in Virginia in 2008, he barely squeaked out a victory in North Carolina, winning the state by less than a percentage point. John Davis, a longtime political analyst in North Carolina, said Obama won there in part because his campaign identified the state as a potential battleground early and established a dominant ground game, while the Republican nominee, Sen. John McCain, was focused elsewhere.
But with North Carolina now firmly on the political establishment’s radar, Davis said thinks Obama will have a much harder time holding the state next November.
“This time I think Obama loses the advantage of a surprise like he pulled off in 2008,” he said.
The president faces significant obstacles in Virginia as well. While Democrats had hoped Obama’s victory signaled Virginia’s shift to a blue state, momentum has since strongly turned back in favor of Republicans, most notably with Gov. Bob McDonald’s win in 2009.
That shift has some Virginia Democrats, especially state legislators running in next month’s General Assembly elections, less than thrilled about Obama heading to their state this week. In coal-mining southwestern Virginia, Democratic state Sen. Phil Puckett has flatly renounced the president. With Republicans running television ads and erecting billboards showing Puckett campaigning for Obama in 2008, Puckett said in a television interview he would not support Obama in 2012.
The White House insists the president is focused more on the economy than elections. With the nation’s unemployment rate stuck at 9.1 percent, Obama’s goal this week will be to convince the public that his jobs plan will put out-of-work teachers, police officers and firefighters back on the job, while also repairing crumbling roads and bridges.
By breaking up elements of the plan into individual bills, the White House wants to force Republicans to voice their opposition one by one _ part of the Obama administration’s strategy of hanging blame for any eventual failure of the president’s economic policies on GOP obstructionism.
“Each time we’re going to ask Republicans to support the bill,” Obama said last week. “And if they don’t want to support the bill, they’ve got to answer not just to us, but also the American people as to why they wouldn’t.”
White House spokesman Josh Earnest said Obama would use his stops this week to challenge Congress to get to work this week passing proposals in the bill, starting with initiatives that the administration says would prevent teacher layoffs. Obama will also call for lawmakers to prioritize his call for $50 billion in infrastructure spending.
Despite the president’s call for urgency, it could be November at the earliest before lawmakers take up the proposals in the bill, due to debate scheduled this week on appropriations bills and a planned vacation at the end of this month.
The president will be ditching Air Force One for much of his trip this week, traveling instead on a $1.1 million bus purchased by the Secret Service. The impenetrable-looking bus is painted all black, with dark tinted windows and flashing red and blue lights. Obama first used the custom-made bus during a similar road trip in August, when he traveled through Minnesota, Iowa and Illinois.
Obama’s time on the road will take him through small towns and rural swaths of both Virginia and North Carolina. In addition to his scheduled speeches, the president is sure to make unannounced visits to local restaurants or stop to greet supporters gathered along the road to watch his motorcade pass.
The effect is a campaign-style trip that allows the president to engage in a little retail politics, while also garnering the national media coverage typically afforded only to a sitting president.
Sony said Wednesday it has detected a large number of unauthorized attempts to access user accounts on its PlayStation Network and other online entertainment services.
The Tokyo-based company temporarily locked about 93,000 accounts whose IDs and passwords were successfully verified by the intruders. Sony has sent email notifications and password reset procedures to affected customers on the PlayStation Network, Sony Entertainment Network and Sony Online Entertainment services.
Sony said credit card numbers linked to the compromised accounts are not at risk. It has “taken steps to mitigate the activity” and is investigating any wrongful use of the accounts themselves.
The announcement follows an embarrassing data breach in April, which compromised personal data from more than 100 million online gaming and entertainment accounts and forced PlayStation Network to be shut for a month.
Sony confirmed the latest incidents after its security systems detected an unusually high number of log-in attempts that failed, said Sony spokesman Sean Yoneda. The company suspects that those responsible obtained large data sets from other companies or sources, which were then used to try to access Sony accounts.
“What happened in April was a breach on our servers as we said in our announcements,” Yoneda said. “But this time around, there was no intrusion on our servers. This was … taking someone else’s identity and trying to use that to access our services.”
The access attempts occurred between Oct. 7 and Oct. 10 and targeted accounts globally.
Sony’s customer service centers around the world have not seen a spike in user calls related to the incidents, Yoneda said.
Hurricane Jova roared toward a collision Tuesday night with a vulnerable Mexican coastline dotted with tourist resorts and flood-prone mountain villages, prompting evacuations and shutting down one of the country’s top cargo ports.
Jova weakened some as its center drew to within 78 miles (125 kilometers) of shore, but it still had maximum sustained winds of 100 mph (160 kph), the U.S. National Hurricane Center reported. The forecast path pointed to landfall between Barra de Navidad and the larger resort of Puerto Vallarta to the north around midnight.
As the storm’s outer bands of rain began hitting the coast, some vowed to ride out the storm, while others took refuge at shelters in towns like Jaluco, just inland from the beach community of Barra de Navidad.
“My house has a thatch roof, and it’s not safe,” said Maria de Jesus Palomera Delgado, 44, a farmworker’s wife who went to an improvised shelter at a grade school in Jaluco, along with her 17 children and grandchildren.
“The neighbors told us the house was going to collapse” if hit by the hurricane, she added as the children slept nearby on folding cots packed into a classroom.
In an another classroom, migrant farmworker Rufina Francisco Ventura, 27, fed her 2-month-old son. She said she had left the ranch where she plants chilies and tomatoes planning only to pick up some free blankets, but shelter workers “told me I shouldn’t leave here, because it’s going to hit hard.”
Jalisco state authorities evacuated about 200 people to shelters by Tuesday and was issuing alerts over loudspeakers placed in communities long the coast, telling people to take precautions as the hurricane approached, state civil defense spokesman Juan Pablo Vigueras said. The state had 69 shelters ready, he said.
Authorities also set up shelters for residents of inland towns, where the mountainous terrain could cause flash floods and mudslides, which often pose the greatest dangers in hurricanes
“We have about 100 officials working in these communities, telling people they should evacuate,” said Francisco Garnica, the duty officer at the Jalisco state civil defense office. But many were reluctant to leave their homes for fear they would be robbed. “They are worried about their possessions,” he said.
The Mexican army said it had assigned about 1,500 soldiers to hurricane preparedness and relief efforts.
Jova was expected to hit the states of Jalisco, Colima and Nayarit the hardest. About 183,000 people live in the center of the storm’s projected path, said Laura Gurza, chief of the federal Civil Protection emergency response agency.
The U.S. hurricane center in Miami warned that storm surge was expected to produce significant coastal flooding between the major seaport of Manzanillo, east of Barra de Navidad, and Cabo Corrientes, southwest of Puerto Vallarta Internet Payday loans.
Jova could unleash as much as 20 inches (50 centimeters) in isolated areas as it moved inland.
Hotels in Barra de Navidad and the neighboring beach town of Melaque dragged in beach furniture and advised their guests to leave the towns.
But some tourists seemed unfazed.
Bill Clark, a 59-year-old traveler from Santa Rosa, California, ate tacos at a street stand while enjoying a balmy Monday night.
“Some people are going out of town but I’m not really worried,” said Clark, who has been coming to the town of about 3,000 people since 1994. “I’m from California, I have been through earthquakes.”
Christoph Dietschi, 42, and his wife, four children and mother-in-law had checked in to a small beachside hotel in Melaque for a family wedding, but left Monday after the manager told them he couldn’t guarantee their safety or service when the hurricane hit. They rented an apartment in Manzanillo.
“It was better to leave because they can’t guarantee that everything would be OK for us. Maybe there is no electricity, no water, so it’s better to leave,” Dietschi said.
Dietschi walked Manzanillo’s cobblestone streets with his family under just one umbrella to the beach of La Audiencia on Tuesday afternoon to watch the gray sky and choppy sea before the hurricane.
“We still hope that Saturday everything is all right,” said Diestschi. His brother-in-law is scheduled to get married at a church in Barra de Navidad on Saturday.
Heavy rains in Manzanillo forced restaurants and stores to close Tuesday afternoon. Employees at convenience stores boarded up or taped their windows. Soldiers patrolled the main seaside avenue.
Authorities shut down Manzanillo’s port, the biggest cargo center on Mexico’s Pacific coast, and the nearby port of Nuevo Vallarta.
A hurricane warning was in effect for a 100-mile (160-kilometer) stretch of coast from just south of Puerto Vallarta to a point south of Manzanillo. A tropical storm warning was in effect farther south, to the port of Lazaro Cardenas.
At midafternoon, Jova was centered about 85 miles (140 kilometers) southwest of Manzanillo and was moving north-northeast at 6 mph (9 kph), the Hurricane Center said.
In 1959, an unnamed hurricane struck near Manzanillo, reportedly killing 1,000 people. Detailed reports on hurricanes were not available at the time.
The hurricane was expected to be dissipating by the time the Pan American Games start Friday in nearby Guadalajara.
Meanwhile, Tropical Storm Irwin regained some strength farther out in the Pacific with winds near 45 mph (72 kph). While it was expected to move eastward toward land, forecasts indicated it probably wouldn’t make landfall.
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