Employment Stats 1/17/09

This Week in HR: Obama's first day: Pay freeze By Vault

In a first-day flurry of activity, President Barack Obama on Wednesday set up shop in the Oval Office, summoned advisers to begin dealing with war and recession and ordered new lobbying rules for "a clean break from business as usual." He also froze salaries for top White House staff members, placed phone calls to Mideast leaders and had aides circulate a draft executive order that would close the detention center at Guantanamo Bay within a year. [MSNBC]

Citigroup's top-three execs decline bonuses
Citigroup's top three executives have passed up bonuses, as the banking giant works to return to profitability after five straight quarters of losses. [MSNBC]

Subsidy for COBRA coverage part of economic recovery proposal
Lawmakers in the U.S. House of Representatives have proposed an economic recovery package that would provide temporary subsidies for health insurance coverage to workers who have lost their jobs. The legislation would provide a 65 percent subsidy for COBRA continuation premiums for up to 12 months for workers who lose their jobs. The legislation would also extend the availability of unsubsidized COBRA coverage for older and tenured workers. synopsis. [HR.BLR.com]

Hirings and Firings: Obama picks new EEOC chair By Vault

Former Merrill CEO Thain resigns from Bank of America
Though short-lived, the marriage between Ken Lewis' BofA and John Thain's Merrill Lynch turned out to be compelling drama. To bring you up to date, last September BofA agreed to acquire (and, in effect, save) an ailing Merrill Lynch. A few months later, in December, the deal was officially approved. Three days prior to the deal closing, it was discovered later, some checks were signed - bonus checks for Merrill's big hitters - and they were signed more than a month earlier than customary. Not long after these payouts (sanctioned by Merrill CEO John Thain) were made, BofA went back to Uncle Sam to ask for even more bailout money. All this happened while accountants were tallying Merrill's 2008 financial results (that included a $15 billion loss in the fourth quarter alone), which ultimately came out well below anyone's wildest expectations. Now, Thain is officially out, and predictably trying to save face, but at the very least he should be able to score some nice cash on eBay for his $1.22 million office furnishings.

President Obama picks new EEOC chair
President Barack Obama has appointed Stuart J. Ishimaru as acting chairman of the U.S. Equal Employment Opportunity Commission and Christine M. Griffin as acting vice chair. [HR.BLR.com]

Company News: Layoffs, layoffs everywhere By Vault

Layoffs abound at major U.S. companies
Some of the biggest companies in the nation announced plans for large-scale workforce reductions this week, as the deepening recession continues to take its toll. Here's a brief rundown of some of the big stories:

Heavy machinery maker Caterpillar Inc. is projecting 2009 earnings well below analysts' estimates and plans to cut 20,000 jobs - about 18 percent of its workforce - to reflect the lower demand. This announcement comes after the company's fourth-quarter net income experienced a steep 32% drop at the end of last year. Caterpillar is currently the world's largest maker of construction and mining machines, but could be headed for its worst year of business since WWII. [New York Times]

Home Depot also announced an upcoming reduction in force Monday. The No. 1 home improvement retailer will be shutting down its high-end EXPO business, which has underperformed financially and is not expected to in the future. Additionally, support staff will be decreased, with both moves resulting in the elimination of 7,000 jobs, or about 2 percent of Home Depot's total workforce. Customer service positions in the company's Home Depot stores will not be impacted, the company said. [CNNMoney.com]

The Sprint Nextel Corporation announced plans Monday to slash 8,000 jobs, or 14 percent of its workforce, by March 31. The wireless provider will seek to cut its annual costs by $1.2 billion. About 850 of the cuts are voluntary and the company expects to pay over $300 million for severance and other costs. Sprint Nextel is not the only wireless provider to feel the recession sting, as you may recall rival AT&T's plan to cut 12,000 jobs, or roughly 4 percent of its staff, announced last month. [New York Times]

While the scope of layoffs is not quite as vast as at the aforementioned heavyweight companies, farm equipment maker Deere & Co. is also being forced to lay off workers - nearly 700 of them between factories in Brazil and Iowa - with projections of flagging sales of construction and forestry equipment worldwide. One single agricultural harvesting plant in Horizontina, Brazil will lose 502 workers, while another 190 employees at a plant in Davenport, Iowa, will be laid off or temporarily assigned as of February 16th. [International Herald Tribune]

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