Chuck E. Cheese's restaurants fined for child labor law violations

Nine San Francisco Bay Area pizza parlors that specialize in hosting children's birthday parties were fined a combined $28,000 by the U.S. Department of Labor for violating federal child labor laws.

The Chuck E. Cheese's put 16 young workers at risk by allowing them to load and operate on-site trash compactors. Two minors also illegally ran a dough mixing machine, the agency said in a Monday press release.

"We all want young workers to develop the skills and experience necessary to compete in the marketplace, but safety must never be sacrificed in the process," said Ruben Rosalez, acting administrator of the Labor Department's western Wage and Hour Division.

"Employers have an obligation to ensure that minors are not performing tasks that could be harmful, which is why these child labor rules were established."

CEC Entertainment, the Irving, Texas, company that operates 497 Chuck E. Cheese's locations, did not respond to requests for comment. However, the Labor Department said that the company agreed to comply with federal regulations and paid the civil penalties. Chuck E. Cheese's managers removed keys from trash compactors, instructed minors under 18 not to operate them and put warning signs on equipment, the department said.

The Fair Labor Standards Act bans all underage employees in nonagricultural occupations from engaging in certain hazardous activities, including scrap paper balers, paper box compactors and mixers for  dough, batter and other foods.

RELATED:

Mitt Romney, Newt Gingrich spar over moon mining, child labor

Newt Gingrich expands on his support for child labor

Postscript: Defending laws on child labor

-- Marc Lifsher

Photo: A child at a Chuck E. Cheese's restaurant in San Bernardino. Credit: Anacleto Rapping/Los Angeles Times

Consumer Confidential: Highest minimum wage, generational income

Here's your rainy-days-and-Mondays Monday roundup of consumer news from around the Web:

--Our friends up north in San Francisco are making history with the first minimum wage to top $10 an hour. Come New Year's Day, the city's hourly wage for its lowest-paid workers will hit $10.24, more than $2 above the California minimum wage and nearly $3 more than the working wage set by the federal government. San Franciscans passed a proposition in 2003 that requires the city to increase the minimum wage each year, using a formula tied to inflation and the cost of living. And even though some businesses may see this as a burden, they should remember what Henry Ford said when he boosted his employees' wages back in the day: A well-paid worker is simply another customer for his products. Smart. (Associated Press)

--Speaking of having more cash on hand, here's a topical question: Are young people today better off than their parents? At least when it comes to income, the answer depends on gender. Today's young women make $1.17 for every $1 their moms earned back in 1980. Young men, however, are earning 10 cents per dollar less than their fathers did 30 years ago, new research shows. The study, compiled by the nonprofit Young Invincibles and the think tank Demos, looked at wage data for 25- to 34-year-olds in 2010 and compared it with the wages of that same age group in 1980. What they found is that young women are faring slightly better than their mothers did at the beginning of their careers, mainly because of advances for women in the workplace. Meanwhile, young men have fewer opportunities overall, due to the decline of manufacturing, construction and other male-dominated industries. (CNN Money)

-- David Lazarus

Photo: As far as minimum wages go, San Francisco is tops. Credit: Justin Sullivan/Getty Images

 

Southern California Food 4 Less workers authorize Kroger strike [Updated]

Inspired by strike threats from workers at Ralphs, Albertsons and Vons earlier this year, Food 4 Less employees voted Thursday to authorize a strike if parent company Kroger Co. does not offer them better wages and benefits.

Members of United Food and Commercial Workers (UFCW) from seven Southern California unions said workers at Food 4 Less sometimes make as much as $3 less than comparable employees at Ralphs, another Kroger chain.

The UFCW said in a statement that Cincinnati-based Kroger is “deliberately stalling progress” on negotiations as a way to “weaken union resolve.” Bargaining, the unions said, is expected to resume later this month.

UFCW finalized a three-year labor contract with Ralphs, Vons and Albertsons in September after months of negotiations, calling the final deal a “win-win” for both sides.

“We have seen what staying united can do when you are in a fight with mega-corporations,” said UFCW member Beatrice Lopez in a statement Friday. “UFCW members at Ralphs stuck together and ended up with a contract that shows them respect. We are going to do the same.”

Kroger could not be reached for comment. Other Kroger chains include Fred Meyer and City Market.

[Updated 1:30 p.m.: “Food 4 Less remains committed to reaching an agreement that is good for our employees and helps keep union jobs sustainable for the future,” said Kendra Doyel, a spokeswoman for the chain, in a statement. “We will continue to work with union leadership to negotiate a contract. Our employees do not want to strike and they look forwrad to serving customers in our stores throughout the holiday season.”]

The grocery chain’s same-store sales without fuel were up 5% in the third quarter ending Nov. 5 compared to the same period last year -- making for 32 straight quarterly increases, Kroger said.

Earnings were down to $195.9 million, or $0.33 per diluted share, from $202 million, or $0.32 per diluted share in the same period last year.

In a conference call with analysts this month, Kroger President W. Rodney McMullen said the company had closed labor negotiations in Southern California, Ohio, West Virginia and Washington.

“Our objective in every negotiation is to find a fair and reasonable balance between competitive costs and compensation packages that provide good wages, high-quality affordable healthcare and retirement benefits for our associates,” he said.

RELATED:

Grocery strike averted with Ralphs, Vons and Albertsons

Grocery strike avoided; deal called 'win-win' for both sides

-- Tiffany Hsu

Photo credit: Kiichiro Sato / Associated Press

Disneyland and union settle long labor dispute

Ending a four-year dispute, the Disneyland Resort in Anaheim reached a five-year contract agreement with 2,100 hotel workers.

The dispute had bogged down recently over healthcare cost increases in Disneyland's proposed contracts.

The labor union, Unite Here Local 11, claimed the workers could not afford the increases and organized several protests at the theme park and at Disney's Burbank studios.

"We’re extremely pleased that the Disneyland Resort hotel cast members represented by Unite Here Local 11 have overwhelmingly supported this fair and comprehensive agreement,” Tony Bruno, vice president of Disneyland Resort Hotels and Downtown Disney, said in a statement.

The new contract, which extends through January 2017, includes wage increases and a decreased workload for housekeepers. It also gives workers a choice to remain in the union healthcare plan, with employee contributions of $7 to $10 per week, or transition to one of Disney's healthcare programs and be eligible for a one-time bonus.

The new contract also provides job security and seniority protection for both full-time and part-time workers.

The contract covers housekeepers, food and beverage workers, front-desk staff and other hourly workers at the Disneyland Hotel, the Grand Californian Hotel and the Paradise Pier Hotel.

RELATED:

Cars Land ready to roll next summer

Long-running labor dispute heats up at ports of L.A., Long Beach

Jobless rate falls to 8.6%, sending mixed message on economy

-- Hugo Martin

Photo: Unite Here members protesting at Disneyland. Credit: DisZine.com

Ask Laz: Can your boss put your vacation requests on hold? [Video]

OK, worker bee, an island getaway is calling your name, but your boss won't let you answer. Is that kosher? 

KTLA viewer Veronica is asking. Her mom works for a hotel in downtown Los Angeles. When she puts in for time off, hotel management tells her whether she can get the break depends on how many guests they have at the time.   

She wants to know whether they can legally do that.

Laz's reply? Well, that depends.

Click the video to find out more. 

 

 

 

You can catch David Lazarus on KTLA-TV Channel 5 weekday mornings and during the 1 p.m. newscast. 

If you have a question, write or send a video to asklaz@ktla.com. You might just get the answer on KTLA. 

 

RELATED: 

Women a century away from breaking California glass ceiling, study says

Most companies plan on having holiday parties: report 

60% of workplaces surveyed block online shopping at the office

 

 

-- Michelle Maltais

 

Long-running labor dispute heats up at ports of L.A., Long Beach

Picket lines went up outside four of the 14 cargo terminals at the nation's busiest seaport this afternoon after long-running contract negotiations between union and management representatives took a turn for the worse.

The dispute shut down operations at the four terminals when dockworkers honored the picket lines, but an independent arbitrator ruled at 4:30 p.m. that the dockworkers were to report back to work for the shift change at the terminals at 6 p.m.

The picket signs were hoisted by members of the International Longshore and Warehouse Union's office clerical unit Local 63, a little-known group of about 900 workers who, in spite of their small numbers, could have the strength to shut down San Pedro Harbor's cargo business.

The facilities affected included Total Terminals International, used by the South Korean line Hanjin Shipping, at the Port of Long Beach. Also affected were three terminals at the Port of Los Angeles that are used by NYK Line, a Japanese carrier; the Taiwanese Evergreen Line; and China Shipping Container Lines, which is based in Shanghai.

About 10 people were on the picket line in Long Beach and an additional 25 were on the picket line at the Port of Los Angeles. The lines went up during a lunch break for longshore workers. The office clerical unit handles much of the paperwork associated with cargo movement at the ports.

It is affiliated with, but negotiates its contracts separately from, the larger, 15,000-strong West Coast-wide International Longshore Warehouse Union. But it is that affiliation with the larger group of dockworkers and marine clerks that gives the smaller union clout far beyond its size.

If the arbitrator had ruled that the smaller union's picket were "bona fide," in labor relations parlance, the parent union would have been bound to honor them.

So far, there were no picket lines at any of the other 10 terminals at the two ports, which together make up the world's sixth-busiest harbor. Work at those terminals was proceeding as usual.

The two sides have been negotiating off and on since before the last contract expired June 30, 2010. They appeared to be far apart in terms of a deal.

“We’re sick and tired of seeing these wealthy companies outsource good jobs that our communities desperately need now,” said John Fageaux, president of the clerical workers union. "We’re taking this action to help our communities stand up against the corporate greed that’s been wrecking America."

The companies painted a much different picture, accusing the union of "pressing demands that would weaken the competitiveness of the Los Angeles and Long Beach ports while rewarding and sustaining absenteeism and inefficiency."

RELATED:

Railroads, unions stave off a strike

British workers fear pension overhaul

Labor relations board may be put out of work

-- Ronald D. White

Photo: Shipping containers at the Port of Long Beach await loading onto ocean vessels for the long trip back to Asia. Work here and at the neighboring Port of Los Angeles could be shut down if an escalating labor fight spirals out of control. Credit: Allen J. Schaben / Los Angeles Times

Railroads, unions avoid a possibly crippling national strike

Negotiators for 30 of the nation's railroads and labor representatives backed away from a strike that might have crippled the nation's fragile economic recovery. Two more tentative agreements were reached and the only remaining union without a deal agreed to keep talking at least through Feb. 8.

The National Carriers’ Conference Committee (NCCC), which represents the railroads, and 13 unions representing 132,000 workers have been trying to hammer out differences over wages, benefits and job protection since talks began way back in January 2010.

As of Thursday, tentative agreements had been reached with only 10 of the 13 unions and a 30-day cooling off period was set to expire on Dec. 6. No strike can be called during a cooling off period.

But the NCCC announced Friday that representatives shook hands over a tentative deal with two more unions--the Brotherhood of Locomotive Engineers and Trainmen and the American Train Dispatchers Assn. The third union still without a contract, the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters, agreed to extend the cooling off period until Feb. 8.

Complete details were not disclosed pending ratification by a vote of union members, but the chairman of the railroad bargaining committee talked about what had been achieved.

A. Kenneth Gradia, chairman of the National Carriers’ Conference Committee, said, “In a tough economy, these agreements offer a terrific deal for rail employees. They lock in well-above market wage increases of more than 20% over six years, far exceeding recent union settlements in other industries.”

The president for the last union without a deal said that his members had not agreed to extend the talks because they were afraid to call a strike.

"We took this action because we believe it gives our members the best opportunity to resolve this issue quickly and fairly and avoid an interruption to commerce and avoid a wage loss to our members and other union members who would honor our picket lines," said the union's president, Freddie Simpson.

Railroad negotiations are always complicated because a strike that can shut down the nation's freight and commuter railroads can be set off by just one union walking off the job. The last national railroad shutdown took place in June 1992. The rail closures were so devastating that they were costing the economy an estimated $1 billion a day in lost jobs and economic output.

In Southern California, the shutdown caused two days of traffic congestion nightmares as trucks were forced to haul freight that was normally carried by rail. Commuter trains were also idled, forcing even more drivers onto already gridlocked freeways and surface streets.

After only 48 hours of those and similar problems around the nation, Congress intervened with emergency legislation that was quickly signed by then President Bush, ordering the rails to be reopened and specifying that talks had to resume.

Today, with the U.S. economy even more dependent on consumer spending and international trade, the American Assn. of Railroads had estimated that a rail shutdown would be twice as costly--at about $2 billion a day.

ALSO:

Boeing, machinists union reach deal

British workers protest plans for pension overhaul 

Labor relations board may be put out of work

-- Ronald D. White

Photo: A Union Pacific freight train hauling cargo through Omaha, Neb. Experts said that a national railroad strike would be twice as costly as the one that took $1 billion a day out of the U.S. economy in 1992. Credit: Nati Harnik / Associated Press

Jobless rate falls to 8.6%, sending mixed message on economy

The U.S. jobless rate fell sharply last month to its lowest level since March 2009 as employers stepped up their hiring in the latest sign of a steadily improving economy.

The report Friday from the Labor Department wasn’t entirely positive. The unexpectedly big fall in the unemployment rate, to 8.6% from 9% in October, was partly due to droves of workers, mostly women, who dropped out of the labor force, many probably because they saw weak job prospects.

A separate survey of employers in the U.S. showed they added 120,000 net new jobs in November, a relatively modest number given the economy’s needs, but Labor officials said there was more hiring under the radar at start-ups and family enterprises than these data captured.

Still, both worker and employer surveys pointed to a job market that is continuing to make strides since summer, despite ongoing concerns over the European debt crisis, the still-depressed U.S. housing market and the looming budget and fiscal cuts in the U.S.

The Labor Department revised higher the job growth in September and October by a total of 72,000 jobs, meaning job creation over the last three months averaged 143,000 a month. That’s almost double the monthly average from May to August when the debt-ceiling turmoil in Washington and the supply chain disruptions from Japan’s natural disasters took a toll on stock markets, manufacturing and overall confidence.

“The data shows the economy is still not robust but improving at a faster clip,” said Patrick O’Keefe, an economist for the advisory firm J.H. Cohn and a former Labor Department official.

The November job tally got a big lift from retailers, which boosted their head counts by 50,000 -– the second largest holiday hiring in November in a decade. Consumer spending has been surprisingly resilient in recent months, and strong retail sales during the long Thanksgiving weekend will boost confidence if the spending is sustained.

Temporary-help firms and the leisure industry -– hotels and restaurants -– also boosted their payrolls last month by about 20,000 each. Better-paying professional services, such as computer engineers and accountants, added several thousand jobs. Manufacturing payrolls were flat.

Some economists saw little to cheer about in the jobs report, saying the big drop in unemployment was likely to be reversed in the coming months. The jobless rate fell in one month by a similar magnitude last December, to 9.4%, and then again the next month to 9%. The rate went back up to as high as 9.2% this June.

“When you see the unemployment rate fall because people drop out of the labor force, you can’t be too happy about that,” said Dean Baker, co-director of the Center for Economic and Policy Research in Washington. He called the big rate drop a “statistical quirk.”

Concerns grow over possible national railroad strike

Concerns about the possibility of a national railroad strike that may be called as early as Dec. 6 are growing all along the goods movement supply chain.

On Thursday, organizations representing American seaports and retail executives sent letters to the Obama administration and to Congress imploring them to take action to avert a railroad strike that could cost the U.S. economy as much as $2 billion a day.

A strike in the coming days would come at the worst possible time, said Sandra L. Kennedy, president of the Retail Industry Leaders Assn., in a letter to President Obama.

A work stoppage "would disrupt the flow of goods during this critical time, resulting in lost sales, outraged customers," Kennedy said, later adding that it would undermine "what appears to be the strongest holiday shopping season since the recession began."

American Assn. of Port Authorities President and Chief Executive Kurt J. Nagel wrote to congressional leaders, saying, "The National Carriers' Conference Committee estimates that a disruption of rail service could potentially cost our country $2 billion a day. Given the fragility of our current economy and job recovery, this simply cannot be allowed to occur."

The AAPA represents 160 seaports in the United States, Canada, Latin America and the Caribbean. The retail leaders group represents more than 200 retailers, manufacturers and service suppliers.

They were expressing concern over the 22-month-long contract negotiations between 30 of the nation's railroads and a total of about 132,000 union workers.

A bargaining committee representing the railroads, including the two that serve Southern California, have reached tentative contract agreements with 10 unions that represent about 60% of the workers.

But a strike remains a possibility with ongoing talks stalled with three remaining unions: the Brotherhood of Locomotive Engineers and Trainmen, the American Train Dispatchers Assn. and the Brotherhood of Maintenance of Way Employees.

The railroads involved in the talks include the western lines BNSF Railway and Union Pacific. On Tuesday, the National Carriers’ Conference Committee, which represents the railroads, failed to reach an agreement with the three remaining unions that would have extended the current cooling-off period that is set to expire Dec. 6.

No strike can be called during the cooling-off period.

ALSO:

Boeing, machinists union reach deal

British workers protest pension overhaul

NLRB, split along party lines, may be put out of work

-- Ronald D. White

Photo:  A BNSF Railway train hauls cargo from the Port of Long Beach on the first leg of a trip that will eventually take it to the American Midwest. A strike that would halt rail goods movement could cost the U.S. economy as much as $2 billion a day. Credit: Don Bartletti / Los Angeles Times

Does Boeing settlement mean NLRB's actions were for naught?

Out of all of the Obama administration's appointees, those on the National Labor Relations Board have been among the most productive -- and controversial. Two Obama appointees last year introduced a rule to speed up union elections, which awakened the ire of Republicans. The NLRB also launched an investigation into Boeing Co. for transferring airline assembly jobs from Seattle to a non-union shop in South Carolina, whch had become a hot-button issue on the campaign trail as business and labor interests butted heads.

The Boeing investigation could have had profound consequences for companies that are trying to avoid hiring union workers, economists say. But Boeing and the machinists union have reached a deal that creates new union jobs in the Seattle area in exchange for the machinists dropping any opposition to the South Carolina plant.

The reversal may be a disappointment for some labor activists who had hoped that the NLRB's actions would help labor stand up to business interests -- but it was probably the only way the issue could be resolved, said Harley Shaiken, a labor relations professor at Berkeley.

Though the NLRB issued the investigation because it thought Boeing's actions were potentially illegal, the political repercussions made the board's job more difficult than it had hoped, Shaiken said.

"The firestorm that was created was greater than anyone there would have imagined," he said.

A congressional subcommitee led by Rep. Darrell Issa (R-Vista) served the NLRB with its first subpeona since 1940; the U.S. Chamber of Commerce expressed "grave concern" over the investigation; the Obama administration, which is trying to court business leaders such as Boeing's chief executive, was put in a bind and avoided commenting.

"In the larger context, this is the best that could be done," said Shaiken, about the deal. "It does leave some questions unanswered -- but those are for the larger political process, not for the bargaining table."

A statement from the International Assn. of Machinists and Aerospace Workers lauded the jobs the agreement created, but did not mention the compromise about the South Carolina plant.

Expect these issues to come to the fore during the 2012 campaign. In the meantime, there may be one more immediate result: Companies have learned to be more circumspect when relocating jobs to non-union shops. Businesses will bring their legal teams in earlier when relocating employees, and be more cautious about the reasons they give when asked about relocating (a Boeing executive vice president had told the Seattle Times that the company couldn't put up with so many union-related work stoppages).

"The fight that took place won't make [companies] change their behavior," Shaiken said. "It will make them far more cautious about the reasons they give about moving, but it won't make them change behavior in one way or another."

There are signs that the NLRB's burst of activity won't last long. As David G. Savage reports in Thursday's Los Angeles Times, one of the board's three members is serving under a recess apppointment due to run out at the end of the year. If Republicans block the next appointees nominated by Obama, the board will lack a quorum and will be unable to adopt any rules.

RELATED:

Boeing, machinists union reach deal

NLRB, split along party lines, may be put out of work

Congressional Republicans meddle with NLRB case that involves Boeing

-- Alana Semuels

 Photo: Scott Olson / Getty Images

Unions survive anti-labor push in New Hampshire

Legislators in New Hampshire voted to sustain Gov. John Lynch's veto of a right-to-work bill in New Hampshire that would have prevented unions from collecting dues from non-members. It was a victory for unions in a Republican-dominated state that plays host to the first primary of the presidential election season.

Republican presidential candidates Rick Perry and Mitt Romney had spoken in support of the measure, which was passed in the New Hampshire legislature and then vetoed by the governor. The House sustained the veto by a margin of 240-139 this morning.

"Their vote is a clear signal to all of our elected leaders, in New Hampshire and elsewhere, that attacking the rights of everyday Americans isn’t the key to economic prosperity," said Mark MacKenzie, the president of the New Hampshire AFL-CIO, in a statement. 

The New Hampshire vote was the second victory in as many months for the AFL-CIO, which also rallied to get Ohioans to vote down Senate Bill 5, which would have dramatically curtailed collective bargaining for public sector employees in the state. In November, voters approved the ballot initiative striking down the bill by a margin of 61% to 39%.

Still, conservatives worry these small union victories could have a detrimental effect on the economy. According to the National Right to Legal Work Defense Foundation, right-to-work states -- those that prohibit agreements between employers and labor unions that make due-paying or union membership a condition of employment -- fare better economically.

Jobs in the private sector grew 0.3% in right-to-work states from 2000 to 2010, compared to shrinking 5.5% in non-right-to-work states, the foundation says. Right-to-work states are primarily concentrated in the Southeast and the Great Plains.

RELATED:

Unions hold Troublemaking School for recruiting labor activists

Ohio votes to overturn new collective bargaining law

-- Alana Semuels

Photo: Republican presidential candidate and Texas Gov. Rick Perry, who is from a right-to-work state, addresses the New Hampshire legislature. Credit: Jim Cole / Associated Press