Alabama Republican Introduces Bill to Eliminate Overtime Pay

I wouldn’t have believed it had I not read it for myself from the official Congressional website.

U.S. Representative Martha Roby, a Republican from Alabama’s 2d Congressional District has introduced H.R. 1406, officially named the “Working Families Flexibility Act of 2013″ which would END the requirement of the Fair Labor Standards Act for employers to pay Time-and-a-Half to employees for every hour worked over 40 in one week.

http://beta.congress.gov/bill/113th-congress/house-bill/1406

The Congressional Budget Office has reported on the bill, and in part wrote that:

Big Business Profit Model Harms Long Term Profitability

Perhaps the most telling rationale, or motivation for the course upon which corporations have set is explained in this statement by ANDREW SMITHERS: Yes, the current way in which managements are rewarded is perverse from an economic viewpoint. Adam Smith pointed out that some characteristics of human beings such as greed, which are often unpleasant at a personal level, can nonetheless bring social benefits. But this is not necessarily the case under current remuneration systems; greed is increasingly the cause of harm rather than help to the economy.

The long and short of it, is greed. And in that paragraph is the solitary mention of the word or practice.

Philosophically, this time, this period in our nation’s history – and in the history of the world, and in the greater, long term picture of humanity – is yet another prime example, and case in point illustrating why and how the selfishness of greed is unsustainable and genuinely evil.

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Capital Wins, Labor Loses, But Andrew Smithers Says It Can’t Go On

MAKING SENSE — December 26, 2012 at 4:48 PM EDT

BY: PAUL SOLMAN

Warehouse manager at operations desk on computer. Photo courtesy of John McBride & Company Inc.

Paul Solman: Jon Shayne is not just the world’s No. 1 econo-crooner, belting out economics tunes of his own invention under the stage name Merle Hazard at his own website and for the PBS NewsHour audience on inflation, on the Greek debt crisis, on the euro crisis in general, on too-big-to-fail banks, and most recently, on the fiscal cliff.

No, Shayne/Hazard is no one-trick pony. He is also a noted money manager, recently highlighted by Forbes magazine for his perspicacity in stock-picking. Wrote Forbes: “If you follow the stock market, Jon Shayne is worth a good, long listen. Especially now.”

Having listened to Jon plenty over the past few years, I agree, especially with his emphasis on the increasing share of national income commanded by the owners of capital, in contrast to labor. This angle is the focus of Forbes’ story as well.

So I asked Jon to elaborate for the Making Sen$e audience. He has done so by interviewing the person who inspired his thoughts on the subject, British economist Andrew Smithers, who formerly ran the asset management business of S.G. Warburg, and now

Record-setting White Tail Buck harvested by 13 Year-Old Minnesota Hunter

13-Year-Old Hunter Tags 28-Point, 250-Inch Minnesota Whitetail

This buck has been teasing area hunters for years. Find out how a young hunter was the one to finally tag him.

Article by Ben Romans. Uploaded on November 15, 2012

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13-year-old Dylan Beach of Motley, MN harvested a colossal 28-point whitetail buck with a single shot from his Remington .270. The deer had enough mass to make it one of the largest ever taken by a hunter in the state.

 On Sunday, Nov. 4, 2012, 13-year-old Dylan Beach of Motley, Minn. squeezed off a single shot from his Remington .270 and harvested a colossal 28-point whitetail buck—a deer with enough mass to make it one of the largest ever taken by a hunter in the state.

Sitting with his stepfather, Wilbur Verbeck, in a deer blind on his aunt’s farm, Dylan says the day started like any other and he wasn’t sure what they’d see, though never in his wildest dreams did he think they’d encounter the buck of a lifetime.

“I was hunting with my stepdad, and we got in the stand around 7:15 a.m. I was facing a field and my stepdad was facing a swamp. I first saw the deer around 7:40 about 100 yards away, and he turned and started walking towards us, but I couldn’t tell it was such a large deer. At 50 yards, he turned broadside so I shot him,” Dylan says. “I didn’t know his rack was that big because I was focusing on where I was going to shoot, not on the antlers.

After Dylan’s shot hit, the buck fell over, got up again taking a few more steps before going down for good.

Climbing out of their blind and walking towards the deer, Dylan said he didn’t comprehend the magnitude of the moment until he finally stood next to the animal.

“When we got out of the stand and walked up to it, we were

Hostess with the mostess? Try CEO with the mostess. Hostess executives attempted to deceive investors, creditors & legal system before filing bankruptcy.

As the saying goes, “It ain’t over ’til the fat lady sings.”

At this point, apparently, she’s not yet begun, although she is “in the house.”

And, from our “WTF?!?” files, comes this item:

In early February, Hostess had asked the bankruptcy judge to approve a sweet new employment deal for Driscoll. Its terms guaranteed him a base annual salary of $1.5 million, plus cash incentives and “long-term incentive” compensation of up to $2 million. If Hostess liquidated or Driscoll were fired without cause, he’d still get severance pay of $1.95 million as long as he honored a noncompete agreement.

The committee representing Hostess’s unsecured creditors alleges that information it has gathered suggests “the possibility” that the company converted a chunk of its top executives’ pay from performance-based bonuses to salary, “at least in part to sidestep” rules designed to ensure that companies in bankruptcy aren’t enticing their employees to stay on board with the promise of cash, according to documents filed with the U.S. Bankruptcy Court in White Plains, N.Y.

This solitary example is a wonderful one for illustrating what is WRONG with corporate governance and corporate operations in the United States. It’s an even more sad commentary that laws must be enacted to require people to do the right thing. At this juncture, the judge overseeing the Hostess Brands Inc. bankruptcy is doing precisely that.

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Hostess and Bakers Union Asked Accept Strike Mediation

The judge overseeing Hostess Brands Inc. declined to approve the company’s liquidation today and asked management and the bakers’ union to enter mediation tomorrow to resolve the strike that the maker of Twinkies and Wonder bread said forced it to shut.

U.S. Bankruptcy Judge Robert Drain said at a hearing in White Plains, New York, that there are “serious questions as to the logic behind the decision to strike.” Hostess and the bakers’ union agreed to Drain’s request to enter confidential mediation under his supervision.

“To me, not to have gone through that step leaves a huge question mark over this case which I think will only be answered in litigation,” Drain said. “My desire to do this is prompted primarily by the potential loss of over 18,000 jobs, as well as my belief that there is a possibility to resolve this matter, notwithstanding the losses the debtors have incurred over the last week or so.”

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Hostess hasn’t spoken with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union since August, said Heather Lennox, a lawyer for the company. Hostess is seeking permission from Drain to pay bonuses to key managers while closing operations that will leave most of its 18,500 workers unemployed. Any agreement arising from the mediation would probably come too late to save the company, Lennox said.

“Things have gone too far to repair themselves under the current form,” Lennox, a partner at Jones Day, told Drain. “It would be very hard for us to recover from this damage even if there were to be an agreement in the near term.”

‘Best Shot’

“Our best shot is to see what we can sell as going concerns and have the company continue that way,” she said. The hearing to consider Hostess’s request to wind down was postponed until Nov. 21.

Hostess said Nov. 16 that it would shut, claiming that a weeklong strike by the bakers’ union forced liquidation. The union blamed management’s concession demands, while some employees blamed both sides. Strikers were still outside the company’s facilities today, Hostess’s lawyers said.

Corrina Christensen, a spokeswoman for the bakers’ union, didn’t immediately respond to an e-mail seeking comment on the mediation.

Teamsters

The International Brotherhood of Teamsters, whose members distribute Hostess products, had ratified a new contract with 8 percent in wage concessions and 17 percent in benefit reductions.

“The Teamsters will closely monitor the mediation between the BCTGM and Hostess management and assist in any way we can to help the two sides reach an agreement that keeps the company’s doors open,” Ken Hall, the Teamsters general secretary- treasurer, said today in a statement.

The judge may be creating risk for both sides that encourages them to reach a deal, Ken Russak, a bankruptcy attorney at Frandzel Robins Bloom & Csato in Los Angeles, said today in an interview. “The bankruptcy judge would much prefer to have the parties work something out than having to

Warren Buffett Blasts American Corporate Practices

As the saying goes, “There’s no news like old news.”

And so, that’s the case with this entry.

I have little doubt that you – indeed that very few Americans – have read the 2003 Report to Shareholders of Berkshire Hathaway.

However, I have – and I read it when it was published in 2004.

In it, one of the world’s wealthiest men opines about corporate practices that have grieved Americans, the excesses of which have outraged many, if not most.

The report is available here, in its entirety, from the Berkshire Hathaway website.

Excerpted here below, for your convenience, are Warren Buffett’s thoughts from his 2003 Report to Shareholders.

I can understand why the Treasury is now frustrated with Corporate America and prone to outbursts. But it should look to Congress and the Administration for redress, not to Berkshire.

Corporate income taxes in fiscal 2003 accounted for 7.4% of all federal tax receipts, down from a post-war peak of 32% in 1952. With one exception (1983), last year’s percentage is the lowest recorded since data was first published in 1934.

Even so, tax breaks for corporations (and their investors, particularly large ones) were a major part of the Administration’s 2002 and 2003 initiatives. If class warfare is being waged in America, my class is clearly winning. Today, many large corporations – run by CEOs whose fiddle-playing talents make your Chairman look like he is all thumbs – pay nothing close to the stated federal tax rate of 35%.

In 1985, Berkshire paid

Godly Social Values

You know, Jim, as I continue to reflect upon the issues about which we spoke this evening, I – being an ardent observer of