Message-ID: <19511364.1075853114036.JavaMail.evans@thyme> Date: Mon, 2 Jul 2001 07:24:16 -0700 (PDT) From: jordan.w.cowman@bakernet.com To: jordan.w.cowman@bakernet.com Subject: July 2001 Baker & McKenzie Global Employment Law Alert Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit X-From: Jordan.W.Cowman@BAKERNET.com@ENRON X-To: Jordan.W.Cowman@BAKERNET.com X-cc: X-bcc: X-Folder: \MCASH (Non-Privileged)\Cash, Michelle\General Research X-Origin: Cash-M X-FileName: MCASH (Non-Privileged).pst I am pleased to send you our web-based e-mail "Alert" prepared by Baker & McKenzie's Global Labour, Employment & Employee Benefits Practice Group("GLEEB"). The Alert's purpose is to provide our clients and friends with timely updates - in a short "user friendly" fashion with hyperlinks to articles with more detailed information on employment law developments from around the world. Hence, the descriptive title of Global Employment Law Alert. The July 2001 issue of the Global Employment Law Alert is included below. The Alert is organized into six sections - Global, Asia Pacific, Europe, Africa/Middle East, South America, and North America. The Alert consists of short, one-paragraph "blurbs," organized by country and region. You can quickly scan the Alert for items of particular interest, and then click on the hyperlinks provided for each blurb for additional information. Please email me back if you would like to be removed from my email list, or if you would like to receive further information. If you are not on our mailing list for our quarterly publication, The Global Employer, which summarizes cutting-edge developments in labor and employment law around the world, and would like to be, please email me your physical address and I'll be glad to send you a copy of our latest edition. If you have any questions, please feel free to contact me. Jordan W. Cowman Board Certified, Labor & Employment Law Texas Board of Legal Specialization Baker & McKenzie 2001 Ross Avenue, Suite 2300 Dallas, Texas 75201 214/978-3015 214/978-3099 fax jordan.w.cowman@bakernet.com top This email contains the latest Global Employment Law Alert! Baker & McKenzie GLOBAL EMPLOYMENT LAW ALERT Baker Events Global Asia Pacific Europe & CIS Africa/Middle East South America North America Baker_EventsBaker Events top VISIT OUR GLOBAL EMPLOYMENT LAW ALERT WEBSITE: To access our Alert program, including current and past editions of the GEL Alert, please visit our dedicated website at http://www.bakernet.com/gel. Readers can search the current GEL Alert by category, or access our complete archive search engine to review past GEL Alerts by topic, country, region, or date. In addition, readers can search our Knowledge Base (K-Base) for surveys, resources, and articles by members of our Global Labour, Employment & Employee Benefits Practice Group. Alert Date: 7/1/01 NEW PUBLICATION SCHEDULE: Based on feedback of our readership, the GEL Alert will be disseminated twice per month (on the 1st and 15th day of each month) beginning in mid-July. This will ensure that our readership receives the most timely and up-to-date information possible on breaking developments. Alert Date: 7/1/01 Baker Events: Mexico - On July 12, 2001 a seminar entitled "The Labor Environment Today: Challenges and Perspectives" will be held in Guadalajara, Mexico. For further information, contact Laura Garc?a-Cruz at laura.garcia-cruz@bakernet.com . Alert Date: 7/1/01 GlobalGlobal top ** - INCREASE IN SPENDING ON AGING POPULATIONS: The Organization for Economic Cooperation and Development recently released a report on the fiscal implications of aging. The report concludes that the world's industrialized countries may have to spend an additional 6 to 7 percent of gross domestic product on pensions and healthcare by 2050 for older workers. See " OECD Calls For Fiscal And Other Reforms To Offset Higher Spending On Aging Populations." guenther.heckelmann@bakernet.com or paul.brown@bakernet.com Alert Date: 7/1/01 ** - AFRICAN UNION LEADERS EXPRESS SOLIDARITY WITH STRIKING WORKERS: On June 5, 2001, union leaders from fourteen African countries signed a solidarity message expressing disappointment over protracted salary negotiations with their governments. The message urges African governments to keep promises made to union workers in prior negotiations. Chief Government spokesman and Information and Broadcasting Minister Vernon Mwaanga of Zambia described the message as "irresponsible," explaining that union leaders should not comment on matters in other countries. See " Union Solidarity In Africa ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ** - PENSION REFORM BECOMING A PRESSING GLOBAL ISSUE: On June 7, 2001, the World Bank reported that pension reform is becoming an increasingly important global issue for developing and high-income countries. Many countries have basic pension plans in place; however, most only cover 10% to 30% of the working population and impose a heavy strain on economic development. The World Bank favors a multi-pillar pension plan consisting of minimal contribution by the lifetime poor, access to various financial instruments for the large informal sector, and a diversified sector for formal workers. david.w.ellis@bakernet.com or robert.west@bakernet.com Alert Date: 7/1/01 ** - INTERNATIONAL LABOUR CONFERENCE OPENS AND SECRETARY OF LABOUR ELECTED: On June 5, 2001, the 89th session of the International Labour Conference opened and elected Ms. Patricia A. Sto. Tomas as President. Ms. Sto. Tomas is currently the Secretary of Labour and Employment for Philippines. She emphasized major agenda items of the conference, including adoption of new international standards on safety and health of workers. See " International Labor Conference Opens ." william.watson@bakernet.com or jorge.de.regil@bakernet.com Alert Date: 7/1/01 ** - ICFTU REPORT FINDS DISCRIMINATION AND RESTRICTIONS ON THE RIGHT TO STRIKE IN SIX CARIBBEAN STATES: Recently, in a report on six members of the Organisation of East Carribbean States (OCES), the International Confederation of Free Trade Unions (ICFTU) found excessive limitations on the right to strike for many employees, evident workplace discrimination, and non co-operation with the ILO. The report coincides with a review of OECS trade policy by the World Trade Organisation (WTO) and focuses on respect for internationally recognised core labour standards in Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. See " ICFTU Strike Report ." richard.tuschman@bakernet.com or neil.mcguinness@bakernet.com Alert Date: 7/1/01 ** - ICFTU LAUNCHES REPORT ON FORCED LABOUR IN PRISONS: Prison labour is one of the five exceptions stipulated in ILO Convention 29 concerning the prohibition of forced labour. The issue, which is at the top of the agenda at the current ILO annual conference, is also the subject of a new ICFTU report. The ICFTU report states that from joint ventures of private companies and public authorities to complete privatisation of the prison system, penal institutions are increasingly being managed like fully-fledged businesses to the detriment of their inmates, whose basic rights are regularly violated. See " ICFTU Prison Labour Report ." robert.p.lewis@bakernet.com or brian.s.arbetter@bakernet.com Alert Date: 7/1/01 ** - WORKWEEK IN SOUTH KOREA LONGEST, FRANCE SHORTEST: On June 5, 2001, Roper Reports Worldwide 2001 Global Consumer Study released its findings of international labour statistics. The average full-time workweek for the 32 countries surveyed is 44.6 hours, with workweeks in South Korea the longest and France with the shortest. See "International Labour Statistics." gilles.jolivet@bakernet.com or carole.a.spink@bakernet.com Alert Date: 7/1/01 ** - EUROPEAN UNION MEMBERS AGREE ON MEASURE TO REQUIRE CONSULTATION WITH WORKERS: On June 11, 2001, the European Union (EU) member states came to a political agreement requiring companies with 50 employees or less to consult with workers before implementing lay-offs, decisions related to relocation, or other economic restructuring. EU ministers also agreed on directives addressing sexual harassment in the workplace. Finally, EU member states also approved legislation to set noise limits in the workplace. See " 76/207/EEC ." christine.obrien@bakernet.com or alex.valls@bakernet.com Alert Date: 7/1/01 ** - ICFTU INSISTS THAT "CHILD LABOUR" BE RECOGNISED: On June 15, 2001, global trade union organisations condemned governments who are beginning to accept the exploitation of child labour. Activitsts complain that governments have become increasingly supportive of weakening international commitments to eliminate child labour, by leaving millions of children in the workforce and seeking trivial improvements in their working lives. The global union movement is now urging all governments to recognize the importance of child labour. See " Global Unions Group ." stewart.saxe@bakernet.com or alex.valls@bakernet.com Alert Date: 7/1/01 ** - EU COMMITTEE COMPROMISES ON PENSION PROPOSALS: On June 19, 2001, the European Commission's Committee on Economic and Monetary Affairs agreed to a series of amendments to open up pan-European occupational pension markets to "pay as you go" schemes. The compromise was reached between those who prefer to guarantee the security of pensions and those who support opening up national markets and offering consumers more freedom of choice. See " Compromise On Pension Proposals ." maura.ann.mcbreen@bakernet.com or robert.west@bakernet.com Alert Date: 7/1/01 ** - EXXONMOBIL SUED OVER ACEH RIGHTS ABUSES: On June 20, 2001, human rights groups accused ExxonMobil, the world's largest oil company, of human rights abuses allegedly committed by security forces in Indonesia. Eleven villagers allege that ExxonMobil was complicit in murders, rape, torture, and kidnapping. See " ExxonMobil Sued Over Human Rights Abuses ." william.r.watson@bakernet.com or duane.gingerich@bakernet.com Alert Date: 7/1/01 ** - IUF/COLSIBA AND CHIQUITA BRANDS INTERNATIONAL SIGN AGREEMENT ON TRADE UNION RIGHTS FOR BANANA WORKERS: On June 14, 2001, an agreement on "Freedom of Association, Minimum Labour Standards and Employment in Latin American Banana Operations" was signed at the International Labour Organisation (ILO) in Switzerland. The agreement, signed by representatives from the International Union of Food (IUF), the Latin American Coordinating Committee of Banana Workers Unions (COLSIBA), and Chiquita Brands International, addresses worker health issues, environmental issues, and minimal labour standards. See " Freedom Agreement." brian.s.arbetter@bakernet.com or kevin.coon@bakernet.com Alert Date: 7/1/01 ** - ILO REPORTS ON CHILD TRAFFICKING IN WEST AND CENTRAL AFRICA: On June 15, 2001, the International Labour Organisation released a report focusing on the rising concerns of child trafficking in West and Central Africa. The report is the result of the first phase of a project to combat trafficking in children for labour exploitation in nine countries of West and Central Africa. See " Child Trafficking Report ." andrew.b.cripe@bakernet.com or carole.a.spink@bakernet.com Alert Date: 7/1/01 ** - BUSINESSES WAKE UP TO THE THREAT OF HIV/AIDS: On June 23, 2001, the United Nations Integrated Regional Information Network (IRIN) published a third report in a series of five special features to coincide with the UN General Assembly's Special Session on HIV/AIDS. The report reveals that HIV/AIDS threatens to adversely affect the economic and social progress achieved to date in Southern Africa. Several large employers have initiated responses to the issue through programs of prevention and care in Africa. See " HIV/AIDS Threat ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ** - ILO APPROVES GLOBAL SAFETY AND HEALTH AGRICULTURAL STANDARDS: On June 21, 2001, the International Labour Organisation (ILO) approved a new international convention setting out the first global standards on safety and health for agricultural workers. The convention sets out certain rights for agricultural workers, including the rights to be informed on safety and health matters, select safety and health representatives, and participate in workplace inspections through the selected representatives. The standards also address the handling and transport of materials and the sound management of chemicals. The convention will take effect once it has been adopted by two ILO member states. See " Proposed Convention Concerning Safety & Health In Agriculture." gina.l.knight@bakernet.com or mary.maher@bakernet.com Alert Date: 7/1/01 ** - EMPLOYER SUED IN WRONGFUL DEATH ACTION WITH INTERNATIONAL IMPLICATIONS: In a recent wrongful death suit filed in the United States, an employer has been joined in an action against its employee who allegedly struck and killed a teenager while driving and making cell phone calls on company business. In the first case of its kind, the victim's family sought to extend an employer's liability to the actions of its employees while talking on a cell phone about company business after business hours. The employer in this case did not have a internal policy on cell-phone use. Cases such as this and increased reliance on cell-phones and other remote technology are prompting many employers to address this issue on an international basis. See " Wrongful Death Suit Over Cell Phone Use ." gerald.l.maatman@bakernet.com or andrew.j.boling@bakernet.com Alert Date: 7/1/01 ** - ILO ADOPTS CODE ON PREVENTING DISCRIMINATION AGAINST WORKERS WITH HIV/AIDS: On June 22, 2001, the International Labour Organisation adopted a new voluntary global code aimed at stopping discrimination in the workplace against employees infected with HIV/AIDS. The code sets out guidelines on the prevention of HIV/AIDS and managing and mitigating the impact of the disease in the workplace. Additionally, the code addresses the support of HIV/AIDS infected employees. See " ILO To Launch New Code Of Practice On HIV/AIDS And The World Of Work." carlos.dodds@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 ** - U.S. DEPARTMENT OF LABOR OFFERING US$9 MILLION IN GRANTS TO FUND HIV/AIDS WORKPLACE EDUCATION EFFORT ABROAD: On June 27, 2001, the U.S. Department of Labor announced that it was making available approximately US$9 million to fund HIV/AIDS workplace education programs in other countries. The DOL plans to award grants to qualified organizations in up to 10 countries. See " Global Workplace Prevention And Education Program ." gerald.l.maatman@bakernet.com or abby.b.silverman@bakernet.com Alert Date: 7/1/01 ** - ADEQUATE SAFEGUARDS FOR PERSONAL DATA TRANSFER: The European Commission recently adopted a decision outlining contractual clauses to ensure adequate safeguards for personal data transferred from the European Union to countries outside the EU. The decision requires Member States to recognise that companies or organisations using standard clauses in contracts concerning personal data transfers to countries outside the EU are offering protection to the data in compliance with the Data Protection Directive. See " Safeguard For Personal Data ." andrew.j.boling@bakernet.com or michael.j.wagner@bakernet.com Alert Date: 7/1/01 ** - HARMONIZING PENSION SYSTEMS: Commissioner Bolkenstein of the European Commission recently announced several measures to harmonize the different pension systems of the 15 Member States of the European Union. Currently 11 Member States apply the fiscal "omkeer-regel," a tax rule meaning that pension premiums are tax deductible, whilst pension benefits are taxed at the time of payment. Bolkenstein argues that the Member States that apply other fiscal rules (Germany, Italy, Sweden, Denmark, and Luxembourg) should also apply the "omkeer-regel" rule in order to harmonize the different European pension systems. joseph.f.van.vlijmen@bakernet.com or mirjana.maric@bakernet.com Alert Date: 7/1/01 ** - GYPSIES PLAN SUIT AGAINST IBM: On June 21, 2001, an attorney for the Gypsy International Recognition and Compensation Action (GIRCA) announced that GIRCA is planning to file a civil suit against IBM, alleging that its machines helped Hitler identify and send 600,000 members of the group to their death in slave labour camps during the Holocaust. See " Gypsies Plan Suit ." markus.berni@bakernet.com or alain.stehle@bakernet.com Alert Date: 7/1/01 Asia_PacificAsia Pacific top AU - LABOUR ASKED TO OUTLINE IMMIGRATION DETENTION POLICY: Phillip Ruddock, the Minister for Immigration and Multicultural Affairs recently announced that the Labour Government was compelled to outline plans for housing illegal boat arrivals. Labour is trying to be firm on illegal workers and those over-staying their visas, but they are sending mixed messages in planning facilities to detain these over-stayers. See " Labor Outlines Detention Policy ." spiro.mellos@bakernet.com or michael.michalandos@bakernet.com Alert Date: 7/1/01 AU - LABOUR PARTY OFFICIALS INTERFERE WITH UNION BUSINESS: On June 14, 2001, two senior Labour Party members, John Della Bosca and Senator Stephen Hutchins, were accused of interfering in a union election battle to reclaim power in their party. The president of the Australian Worker's Union believes the interference was part of a plan to involve the Transport Workers Union in taking control of the ruling right-wing faction of the union movement and Australian Labour Party. See " Labor Party Interferes ." paul.brown@bakernet.com or spiro.mellos@bakernet.com Alert Date: 7/1/01 AU - UNION BOSS CHALLENGES T.V. STATION OWNER: On June 13, 2001, Union leader Dean Mighell challenged Channel 7 owner, Kerry Stokes, to pursue him for $1500 for breach of federal industrial relations laws. Mighell was fined for breaching the Workplace Relations Act by using unlawful coercion against Channel 7. Mighell calls the fine inappropriate and says he will not be rushing to pay it. See " Union Boss Fined For Breach Of Workplace Relations Act." paul.brown@bakernet.com or mary.maher@bakernet.com Alert Date: 7/1/01 AU - AUSTRALIAN INTERNET STANDARDS TO FOLLOW EUROPE: On June 5, 2001, Australia's Internet Industry Association (IIA), its national body for internet content, commerce, and connectivity, announced that it intends to target compliance with the EU Privacy Directive as one of the key areas its privacy code would address. The head of the IIA, Peter Coroneos, said that the new standard IIA Privacy Code would establish industry benchmarks that go beyond current Australian privacy legislation. He explained that the IIA had foreseen EU compliance as a major issue for companies trading on the internet which, by definition, defied national boundaries. See: " IIA Privacy Code To Tackle EU Compliance. paul.brown@bakernet.com or tim.dixon@bakernet.com Alert Date: 7/1/01 AU - AUSTRALIAN UNION TO RUN CLASS ACTION CASE ON PASSIVE SMOKING: Recently, the Australian Liquor, Hospitality and Miscellaneous Workers Union announced that it had established a register of workers as a first step to gathering case information for common law cases against employers who they alleged put their employees at risk from exposure to smoking. The union says it will also approach insurance companies in the coming weeks warning them that they face serious insurance losses if they continue to insure companies that are not smoke-free workplaces. Union representatives said "LHMU members will not stop until they have succeeded in achieving smoke-free workplaces". See " Union Announces Campaign For Smoke-Free Hospitality Workplaces." paul.brown@bakernet.com or mary.maher@bakernet.com Alert Date: 7/1/01 AU - EMPLOYER WRONG IN E-MAIL DISMISSAL: On June 13, 2001, the Western Australia Industrial Relations Commission found that an employer was wrong to dismiss a worker for storing what amounted to schoolyard dirty jokes in his email folder. The Commission found that even though the worker had breached the employer's internet and email policy, the breach was trivial and the employer's application of the policy was inconsistent with its conduct elsewhere. The decision highlights the need for employers to be careful of overreacting to trivial or technical breaches of email policies and that they need to properly explain to employees what constitutes inappropriate or offensive material for the purposes of their policy. See " Alan Victor Wilmott v Bank Of Western Australia Ltd ." paul.brown@bakernet.com or mary.maher@bakernet.com Alert Date: 7/1/01 AU - TRIBUNAL WARNS EMPLOYERS TO REFLECT DIVERSITY IN ANTI-DISCRIMINATION POLICIES: A recent decision by the New South Wales Administrative Appeals Tribunal highlights the importance of taking into account the ethnic diversity of staff when communicating company anti-discrimination policies. In the case a school custodian was awarded compensation after her manager ignored her sexual harassment complaints and then demoted her. The tribunal found that the worker was not aware of the company's sexual harassment policy but even if she had it would have been of little value to her as her command of written English was poor. See: " D v Berkeley Challenge ." michael.michalandos@bakernt.com or kathleen.thornton@bakernet.com Alert Date: 7/1/01 AU - AUSTRALIAN COURTS INCREASINGLY WILLING TO ENFORCE REASONABLE RESTRAINTS: In a recent decision, the New South Wales Supreme Court has banned an IT recruitment consultant from working in the New South Wales recruitment industry for 3 months after she went to work for a direct competitor. The Court was of the view that the financial hardship she would have to endure as a result of enforcing her restraint or non-compete clause will be for a limited time and was the price she must pay for a direct and flagrant breach of her contract. See " HiTech Contracting Limited v Jane Lynn ." paul.brown@bakernet.com and spiro.mellos@bakernet.com Alert Date: 7/1/01 AU - AUSTRALIAN GOVERNMENT SEEKS TO OUTLAW COMPULSORY UNION FEES: The Australian Government has recently introduced a new bill into Parliament which seeks to outlaw the use of "bargaining fee" clauses in workplace agreements. The proposed legislation will make it unlawful for Australian unions to charge a "service fee" to be imposed on a worker unless that individual worker agrees in advance to the service fee. The government contends that the service fees are an attempt by unions to introduce back door compulsory unionism. See " Back Door Compulsory Union Tactic Removed ." paul.brown@bakernet.com and mary.maher@bakernet.com Alert Date: 7/1/01 AU - IMMIGRANT BOAT CAPTURED OFF AUSTRALIA: On June 15, 2001, Australian Federal police intercepted an Indonesian boat off Christmas Island carrying 231 suspected illegal immigrants from the Middle East. Five Indonesian crewmembers were charged with people smuggling offenses, which can carry a penalty of up to 20 years imprisonment. See " Immigrant Boat Captured ." ian.dixon@bakernet.com or paul.brown@bakernet.com Alert Date: 7/1/01 AU - WORKPLACE HEALTH AND SAFETY BECOME KEY ISSUES IN THE WORKPLACE: On June 20, 2001, Queensland Council of Unions announced that workplace health and safety issues are major items on their agenda. After reports of unhealthy workplaces, the Council is urging employers and the government to establish a Minimum Standards Code. See " Health And Safety Become Key Workplace Issues." paul.brown@bakernet.com or mary.maher@bakernet.com Alert Date: 7/1/01 AU - INDUSTRIAL RELATIONS MINISTER ACCUSED OF RENEGING ON REFORMS: On June 18, 2001, Australian union members accused the Industrial Relations Minister, Mr. Della Bosca, of rushing controversial parts if his reform package through Parliament. Unionists claim Della Bosca agreed to withhold issues that were still being disputed, such as workers compensation, instead of sending them to Parliament for a vote. See " Della Bosca Reneges On Reforms ." kate.temple@bakernet.com or garry.rich@bakernet.com Alert Date: 7/1/01 HK - EOC WELCOMES HIGH COURT RULING: On June 22, 2001 the Equal Opportunities Commission (EOC) announced that it welcomes the Hong Kong High Court's declaration that the Secondary School Places Allocation System (SSPA) is discriminatory and therefore unlawful. SSPA was investigated beginning in 1998 after complaints by parents whose children were allocated to a lower band than their classmates of the opposite sex with lower academic achievements. See " Court Rules SSPA Is Unlawful ." andrea.s.lauffs@bakernet.com or paul.tan@bakernet.com Alert Date: 7/1/01 ID - MASSIVE WORKERS' RALLIES AGAINST LABOUR DECREE ROCK INDONESIAN CITIES: On June 13, 2001, Indonesian workers held rallies to protest a new labour decree that favors employers and puts workers at a disadvantage. Under the new decree, workers dismissed for incompetence or early retirement would lose long-service payments. The decree came after complaints from employers and investors about excessive costs incurred in the past year. See " New Labor Decree." duanej.gingerich@bakernet.com or edmund.leow@bakernet.com Alert Date: 7/1/01 IN - CONGLOMERATE OF INDIA-BASED COMPANIES FORMS NEW ONLINE RECRUITING VENTURE: On June 1, 2001, a consortium of companies based in eastern India announced the formation of an online recruitment venture. Called www.pilotyourcareer.com, the venture intends to expand to northern and southern India, and then to Europe, Australia, and the U.S. This venture is reported to be the first based out of the eastern part of India. See " India On-Line Recruiting." andrewj.boling@bakernet.com or narendra.acharya@bakernet.com Alert Date: 7/1/01 IN - PEOPLES' UNION IN INDIA PROTESTS SLOW RESTORATION OF BUSINESS INFRASTRUCTURE FOLLOWING RAVAGING EARTHQUAKE: On June 3, 2001, an Indian peoples' union called Anjar Group-2001 engaged in angry protests during Prime Minister Atal Bihari Vajpayee's visit to the earthquake devastated Kutch district of Gujarat. Prime Minister Vajpayee was there to reiterate his support for various relief packages for reviving trade, business, and industrial units, as well as providing temporary shelters to residents whose homes were lost in the earthquake. The Group's leader, Shyam Sunder, was quoted as saying, "We have decided to observe a total Kutch shutdown during the prime minister's visit as a mark of protest against the state government's neglect and insensitivity to the suffering of the people." See " People's Union Protest ." andrew.j.boling@bakernet.com or narendra.acharya@bakernet.com Alert Date: 7/1/01 IN - FUNDED SYSTEM IS THE ANSWER TO REDUCE PENSION LIABILITY: On June 25, 2001, a working group created to review pension liability recommended that the Indian Government switch to a funded system in order to reduce pension liability. Currently, government employees do not contribute to their own pensions. See " Pension Liability ." netima.luerakorn@bakernet.com or narendra.acharya@bakernet.com Alert Date: 7/1/01 JP - JAPANESE WORKPLACE VIOLENCE PROBLEMS: On June 8, 2001, a former employee of a Japanese elementary school returned to the workplace and killed eight children. This attack has fueled the growing concern of workplace violence in Japan. See " Violent Crime In The Japanese Workplace ." hiroshi.kondo@bakernet.com or hideo.ohta@bakernet.com Alert Date: 7/1/01 JP- NORTH KOREA BLASTS JAPAN FOR REFUSING VISAS FOR RALLY: On June 8, 2001, a Tokyo-based monitoring agency quoted the official radio Pyongyang blasting Japan for refusing to grant visas to North Korean officials wanting to attend a protest in Tokyo criticizing history textbooks that "gloss over" Japan's wartime aggression. See " North Korea Blasts Japan ." hiroshi.kondo@bakernet.com or nam.h.paik@bakernet.com Alert Date: 7/1/01 JP - JAPAN PASSES LANDMARK PENSION BILL: On June 22, 2001, Japan enacted a version of the U.S. 401(k) retirement savings plan that will, for the first time, allow working individuals to choose how to invest part of their pension monies. See " Japan Passes Landmark Pension Bill ." hiroshi.kondo@bakernet.com or hideo.ohta@bakernet.com Alert Date: 7/1/01 JP - MONTHLY LABOUR SURVEY RELEASED: On June 19, 2001, the Japanese Ministry of Health, Labour, and Welfare published its Monthly Labour Survey for April of 2001, which reported statistics based on cash earnings, hours worked, and number of people employed. See " Monthly Labour Survey ." hideo.ohta@bakernet.com or hiroshi.kondo@bakernet.com Alert Date: 7/1/01 KR - POLICE IN KOREA ARREST UNION LEADERS AS SECOND AIRLINE STRIKE NEARS END: On June 16, 2001, four Korean Air union leaders were arrested for heading an illegal strike. Korean Air Lines Co. had agreed with unions to withdraw the arrest warrants as part of a deal to end a two-day strike by the pilots; however, the police decided to carry out the warrants anyway. See " Police Arrest Union Leaders In Korea." nam.h.paik@bakernet.com or narenda.achayra@bakernet.com Alert Date: 7/1/01 MM - RIGHTS GROUP SAYS MYANMAR STILL USING FORCED LABOUR: On June 11, 2001, Human Rights Watch reported that despite an official ban, Myanmar was still using forced labour. Human Rights Watch reported that migrants entering Thailand from several divisions of Myanmar said they had personally taken part in or witnessed forced labour as recently as May. The migrants reported harsh labour and violence by supervising military police. See " Forced Labour in Myanmar ." prachern.tiyapunjanit@bakernet.com or anurat.tiyaphorn@bakernet.com Alert Date: 7/1/01 MY - TEACHERS IN MALAYSIA TOLD TO HAVE BABIES ON THE HOLIDAYS: On June 24, 2001, Deputy Education Minister Abdul Axix Samsuddin urged woman teachers to plan their pregnancies around their classroom schedules. Since the Ministry does not provide substitutes for teachers on maternity leave and most teachers are women, Samsuddin fears that if too many teachers go on maternity leave at once, the classrooms will be shorthanded. See " Have Your Babies On The Holidays ." duane.j.gingerich@bakernet.com or guenther.heckelmann@bakernet.com Alert Date: 7/1/01 NZ - NEW ZEALAND WATERSIDE WORKERS WIN LANDMARK CASE BUT CALL OFF STRIKE ACTIONS: Waterside workers in Auckland called off strike action which was to occur on June 28, 2001, despite winning a landmark case which would have allowed the action to go ahead. Their employer, Ports of Auckland, argued in the New Zealand Employment Court that the proposed strike action of up to 250 workers breached the new good faith provisions under the Employment Relations Act. However, the Court ruled that there was no evidence that the strike notice had significantly undermined the talks and was unconvinced that the action breached good faith provisions. See " Court Backs Walk-Out ." paul.brown@bakernet.com or kathleen.thornton@bakernet.com Alert Date: 7/1/01 NZ - COURT SLOWS IMPACT OF REFORM LAWS IN NEW ZEALAND: A recent full bench of the New Zealand Employment Court has overturned a decision of the new Employment Relations Authority to prohibit cross-examination during a hearing. The Authority had relied on the new Employment Relations Act's guidelines that it was to focus on practical solutions and conduct quick fire investigations. However, the Court found that cross examination was a necessary ingredient of the principles of natural justice. See " Judges Upset Quick-Fire Hearings ." paulbrown@bakernet.com or kathleen.thornton@bakernet.com Alert Date: 7/1/01 PH - UNICEF ENVOY DECRIES CHILD SEX TRADE: On June 8, 2001, Agnes Chan, a Hong Kong- born singer and ambassador for the United Nation's Children's Fund (UNICEF) urged the international community to help stop the sexual exploitation of children in the Philippines. At least 20,000 homeless children roam the streets where they are beggars, child prostitutes, petty thieves, and drug couriers. Even worse, between 60,000 and 100,000 Philippine children are victims of the country's sex trade. See " UNICEF Envoy Decries Child Sex Trade ." romeo.salonga@bakernet.com or akira.ito@bakernet.com Alert Date: 7/1/01 PH - GOVERNEMENT WORKERS GET SALARY HIKE: On June 8, 2001, Philippine President Gloria Macapagal-Arroyo signed a law granting salary increases to government employees who have been surpassed by workers in the private sector in terms of compensation and benefits. The bill will upgrade all national government salaries by 5%, including teachers, and will also increase the wages of the Philippine National Police with a 12% increase. All salary increases are effective on July 1, 2001. See " Government Workers Get Salary Increase ." romeo.salonga@bakernet.com or gil.zerrudo@bakernet.com Alert Date: 7/1/01 PH - PHILIPPINES NBI CLAMPS DOWN ON CYBERTHIEVES: The Philippine National Bureau of Investigation recently reported it will formally charge two former employees of the Thames International Business School for allegedly breaking into the school's computer system and stealing digital material. The former employees are the first to be charged with hacking and piracy under the Philippines E-Commerce Act. See " Hacking And Piracy Charges." romeo.l.salonga@bakernet.com or gil.zerrudo@bakernet.com Alert Date: 7/1/01 TW - GOVERNMENT TO RELAX RESTRICTIONS ON PENSION FUND USAGE: The Council of Labor Affairs (CLA) of the Taiwan Government recently passed three important resolutions. CLA announced that within three months, the relevant rules will be amended and become effective to enable: (1) a company to pay severance out of part of its pension fund; (2) a company to allocate part of its pension fund to its subsidiary company's account if employees will be transferred to such subsidiary; and (3) the city and local county governments to set up committees to approve payment of pension to retirees without the retirees involving in legal action or stamps for approval from the pension fund committee of a company. See " News From Taiwan ." seraphim.mar@bakernet.com or remington.huang@bakernet.com Alert Date: 7/1/01 TW - PROFESSIONALS ARE IN DEMAND IN TAIWAN: A recent survey reported by a local Taiwan media source suggests that professionals in the areas of finance and securities, business administration and marketing, and IT engineering are in high demand in Taiwan. See " Professionals Needed In Taiwan ." remington.huang@bakernet.com or seraphim.mar@bakernet.com Alert Date: 7/1/01 TW - TAIWAIN WORKERS USE ELECTRONIC VISAS: Taiwanese workers traveling to Hong Kong will be granted an electronic visa beginning in the next Lunar New Year. See " Electronic Visas ." seraphim.mar@bakernet.com or william.kuo@bakernet.com Alert Date: 7/1/01 Europe___CISEurope & CIS top BE - MARKS AND SPENCER CLOSINGS IN BELGIAN COURTS: On June 1, 2001, a report issued by the Belgian Government concluded that the closings of four Marks and Spencer stores which resulted in the cutting of 315 jobs was unlawful and broke employment legislation. Belgian law requires that companies provide adequate notice of closure plans to trade unions and works councils before acting on such a decision. Marks and Spencer said that the stores sustained heavy losses and they had no choice but to close the stores. See " M &S Escapes Belgian Courts." francois.gabriel@bakernet.com or anne.laurent@bakernet.com Alert Date: 7/1/01 DE - GERMAN UNION AIMS FOR WAGE BOOST IN 2002: On June 5, 2001, the German service-sector union, Verdi, announced it will seek significant wage increases during the next round of negotiations despite calls for greater labour-market flexibility in the German economy. Most unions accepted moderate pay settlements in 2000 which are due to expire late next year, and recent mergers of many unions and increased clout and political power are expected to make upcoming negotiations very contentious. See " Verdi Aims For Wage Boost In 2002 ." guenther.heckelmann@bakernet.com or claudia.heins@bakernet.com Alert Date: 7/1/01 DE - GERMAN AIRLINE AVERTS STRIKE: On June 8, 2001, German airline Lufthansa averted a strike with its disgruntled pilots, frustrating other union leaders and possibly ruining the company's finances in the process. The strike was ended by an agreement which guarantees a three year pay increase, with a nearly 30% raise in the first year of the agreement. Although the strike cost Lufthansa US$23 million, the pay raises are set to cost Lufthansa almost US$99 million in the first year alone. The settlement and the procedures to reach it have drawn fire in Germany, a nation where management and labour groups usually broker moderate compromises. See " Lufthansa Averts Strike ." guenther.heckelmann@bakernet.com or markus.kappenhagen@bakernet.com Alert Date: 7/1/01 DE - CYBER PROTEST COULD TOPPLE LUFTHANSA WEBSITE: On June 20, 2001, human rights activists in Germany planned a cyber demonstration in an attempt to crash the German airline Lufthansa's web site. The activists threatened to flood the site with requests for information in protest of the airline's role in the deportation of illegal aliens from Germany. See " Airline Protest To Crash Website ." markus.kappenhagen@bakernet.com or claudia.heins@bakernet.com Alert Date: 7/1/01 DE - VOLKSWAGEN SCRAPS JOBS PROGRAM: On June 25, 2001, Volkswagen AG revoked an offer to create 5,000 new jobs in Germany after disappointing talks between company management and trade union IG Metall. See " VW Scraps Jobs Program ." guenther.heckelman@bakernet.com or markus.kappenhagen@bakernet.com Alert Date: 7/1/01 DE - NEW WORKS CONSTITUTIONS ACT IN GERMANY: On June 22, 2001, the German Parliament adopted the new Works Constitutions Act 2001. The most important innovations under the law are: (i) the simplification of the election procedure, (ii) the establishment of additional representative bodies besides the Works Council, which is thought to lead to a wider spread of employee representation particularly in small and medium size enterprises, and (iii) its extension of co-determination rights in the field of environmental protection. See " German Parliament Works Act ." bernhard.trappehl@bakernet.com or claudia.heins@bakernet.com Alert Date: 7/1/01 DE - NEW TAKE-OVER-DIRECTIVE: On June 6, 2001, the new European Take-Over-Directive was adopted to simplify and harmonise the European company laws with respect to take-overs. The German Government strictly opposes the harmonisation and regulation of management behaviour in take-over situations and will probably use the full length of the transition period until 2007 to incorporate the Directive into German law. bernhard.trappehl@bakernet.com or guenther.heckelmann@bakernet.com Alert Date: 7/1/01 DE - NEW BILL TO CHANGE THE SOCIAL COURT PROCEDURE ACT: The German Government has introduced a bill to provide for alterations of the provisions on fees, enhancements of preliminary relief, and acceleration of the legal proceedings. Although the changes of the statute on fees still includes the exemption from costs for insured persons and recipients of benefits, it introduces provision that fees will be calculated according to the amount in dispute pursuant to the "Gerichtskostengesetz" (Court Fees Act). gabriele.mastmann@bakernet.com or christian.reichel@bakernet.com Alert Date: 7/1/01 ES - IBIZA TROUBLED BY PLANE STRIKES: On June 25, 2001, the Spanish Airline Pilot's Union announced that its workers plan to go on strike, one day a week, throughout the entire summer until pilots reach a better labour agreement. See " Pilots Strike In Spain ." choncha.martin@bakernet.com or fermin.guardiola@bakernet.com Alert Date: 7/1/01 ES - SPANISH BANK TO CLOSE 1,000 BRANCHES: On June 26, 2001, Banco Santander Central Hispano (BSCH), Spain's largest bank, announced plans to close 1,000 branches, sell the land, and request half of the senior staff take an early retirement in an effort to increase profits over the next two years. See " BSCH Closes Branches ." alex.valls@bakernet.com or eduardo.garcia.calleja@bakernet.com Alert Date: 7/1/01 FR - FRENCH POLICE CLASH WITH WORKERS AS PROTESTS HIT PRISONS: On June 8, 2001, protests at prisons across France resulted in outbreaks of violence as police clashed with disgruntled workers who were demanding more staff and improved resources to ensure their safety. In some instances police were forced to use batons and tear gas to disperse prison workers who were blocking access to the jails and had to use truncheons to remove many protestors. The protests were called by three national trade unions in reaction to a failed jailbreak in which two guards were taken hostage by armed inmates at a prison in suburban Paris during May of 2001. See " French Prison Workers Clash With Police." denise.broussal@bakernet.com or gilles.jolivet@bakernet.com Alert Date: 7/1/01 FR - THOUSANDS IN PARIS PROTEST AGAINST MASS LAY-OFFS: On June 10, 2001, thousands of Parisians took to the streets to protest against mass lay-offs, pressuring the French Government to strengthen planned labour law reform legislation. Paris has been the site of many such protests in recent months following massive lay-offs by many French employers. Estimates ranged from 15,000 to 20,000 participants in the protests. See " Thousands Protest Mass Lay-Offs ." christine.lagarde@bakernet.com or gilles.jolivet@bakernet.com Alert Date: 7/1/01 FR - U.S. AND FRANCE AGREE ON TAXATION OF FRENCH SOCIAL SECURITY: Recently, the United States and France reached an agreement on tax contributions to and from French social security plans. The agreement clarifies the application of Article 18 of the Convention between the U.S. and French governments to avoid double taxation. See " U.S.-France Agreement On Taxes ." kerry.a.weinger@bakernet.com or denise.broussal@bakernet.com Alert Date: 7/1/01 FR - FRANCE INCREASES MINIMUM WAGE: On June 26, 2001, union and business leaders in France agreed that the minimum wage increase to take effect July 1, 2001, is disappointing. Union leaders are looking for a more significant increase; however, business leaders sought a lesser increase this year, as many French companies are struggling with the workweek reduction and the pending currency conversion. See " France Increases Minimum Wage ." gilles.jolivet@bakernet.com or denise.broussal@bakernet.com Alert Date: 7/1/01 FR - MARKS & SPENCER EMPLOYEES IN PARIS MARCH IN PROTEST: On June 26, 2001, the staff of Marks & Spencer, set to lose their jobs do to closure of all French stores by the end of the year, marched through central Paris demanding bonus payments. The protesters want an immediate bonus of f12,000 each in recognition of their work. See " Paris Protest March ." gilles.jolivet@bakernet.com or denise.broussal@bakernet.com Alert Date: 7/1/01 FR - DISMISSAL ON ECONOMIC GROUNDS WILL BECOME MORE DIFFICULT IN FRANCE: A recently drafted bill, in the French Parliament, which addresses regulations regarding dismissals and collective dismissals based on economic grounds, will soon make employee dismissals more difficult. The bill provides for a mediator to resolve conflicts as well as a works council to make alternative proposals in the event of a disagreement. See " Job Dismissal in France Will Become More Difficult ." sophie.cahen@bakernet.com or gilles.jolivet@bakernet.com Alert Date: 7/1/01 FR - EMPLOYERS MUST PROVIDE EMPLOYEE TRAINING: French Labour law provides that an employer has a general and permanent obligation to adapt an employee to their position, by means of professional training. Most recently, French case law has determined that an employer must ensure the adaptation of its employees to the evolution of their positions; however, the employer is not obligated to provide initial job training. See " Employers Must Provide Training ." christine.artus-j?gou@bakernet.com or gilles.jolivet@bakernet.com Alert Date: 7/1/01 FR - FRENCH FINANCE MINISTER QUESTIONS NEW EMPLOYMENT LAW: The French Finance Minister has recently raised concerns over a new employment law that will make it more difficult for French employers to fire their staff. Measures of the new law include mandatory pay out for all employees that are let go, a right to employee retraining under full contract, and an increase in the power of works committees. See " New French Jobs Law." olivervasset@bakernet.com or denise.broussal@bakernet.com Alert Date: 7/1/01 FR - PAID PATERNITY LEAVE FOR NEW FATHERS: On June 11, 2001, French Prime Mister Lionel Jospin announced that his Socialist-led coalition government will create a two-week paid paternity leave for new fathers by January 1, 2002. The legislation will be added to existing French labour laws that offer all new fathers three days of paid leave in the three months following a new birth. See " Paid Paternity Leave For Fathers." denise.broussal@bakernet.com or oliver.vasset@bakernet.com Alert Date: 7/1/01 FR - CONTEMPLATED CLOSURE OF PRODUCTION UNITS IN ALCATEL: On June 27, 2001, Serge Tchuruk, Alcatel's Chairman, announced that his group will keep only a dozen out of the 120 production units which are currently operating within the group. He indicated that Alcatel will become "a company without factories." The Alcatel group employs a total of 130,000 employees, out of which 38,000 are working in France. gilles.jolivet@bakernet.com or maxime.pigeon@bakernet.com Alert Date: 7/1/01 FR - CANCELLATION OF COMPANY SOCIAL PLAN WITHIN MOULINEX-BRANDT: Moulinex-Brandt recently announced the closure of its factory located in the north of France, which employs 670 employees. On June 14, 2001, the Labour Administration ("DDTE") cancelled the social plan drafted by the employer for the closure of this factory ("constat de carence"). The consequence of such a decision is the obligation for the company to reinitiate the entire dismissal procedure and to draft another social plan which will take into account the DDTE's observations. gilles.jolivet@bakernet.com or maxime.pigeon@bakernet.com Alert Date: 7/1/01 GR - GREEK AIRLINE UNION SET TO STRIKE: On June 9, 2001, Greece's civil aviation authority workers announced they would conduct strikes in an effort to demand a new work agreement. The Greek union OSPYA announced plans to conduct a 24-hour strike on June 15 and a 48-hour strike on June 29 if a comprehensive work agreement is not signed to ensure Greece's civil aviation workers additional benefits and better pay. The strikes are expected to disrupt flights during Greece's busiest tourist season. See " Greek Aviation Union May Strike." corrado.bartolli@bakernet.com or geza.kajtar@bakernet.com Alert Date: 7/1/01 IE - IRISH SUPERMARKET WORKERS ANNOUNCE PLANS TO STRIKE: On June 8, 2001, more than 9,000 workers at the Tesco supermarket chain throughout the Irish Republic announced plans to strike. The anticipated stoppage is expected to result in picketing at all of Tesco's 75 stores throughout Ireland. The workers are represented by the Mandate trade union and Ireland's Services, Professional Technical Union. See " Tesco Workers Set To Strike ." michael.ingle@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 IE - CALL ON GOVERNMENT TO ADOPT RADICAL STRATEGY FOR ADULT LEARNING: Irish Tanaiste, Ms. Mary Harney T.D., recently launched the joint Council of Directors of the Institutes of Technology, the Conference of Heads of Irish Universities, and the Irish Business and Employers Confederation Report on lifelong learning. See " Government Urged To Adopt Radical Strategy To Adult Learning." christine.obrien@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 IE - IRISH LABOUR UNION SETTLES GUINNESS PLANT CLOSING DISPUTE FOR 10-YEAR SUPPLY OF BEER: It is common in the beer industry worldwide for employees to enjoy beer privileges in the form of employer-supplied weekly beer allotments. However, the Services, Industrial, Professional & Technical Union ( SIPTU ), Ireland's largest labour union, recently invoked the beer allowance in a unique way in settling a plant closing dispute with Guinness , the well known Irish beer maker. Guinness' announcement to close its Dundalk plant led to a longstanding dispute and strike. The company and the union recently settled their differences by agreeing that laid off workers will receive severance packages of between 37,000 and 137,000 Irish pounds (US$40,000 and US$147,700), and the continuation for up to 10 years of benefits, including the beer allowance. christine.obrien@bakernet.com or shona.newmark@bakernet.com Alert Date: 7/1/01 IE - IBEC CALLS FOR RIGHT TO WORK FOR ASYLUM SEEKERS: On June 20, 2001, the Irish Business and Employer's Confederation (IBEC) called on the Government to grant asylum seekers the right to work after six months, even if their applications have not been approved within that timeframe. See " Right To Work ." john.evanson@bakernet.com or michael.ingle@bakernet.com Alert Date: 7/1/01 IE - IBEC SAFETY GUIDE WILL HELP EMPLOYERS PREVENT ACCIDENTS: On June 6, 2001, the Irish Business and Employer's Confederation (IBEC) published a new guide on Occupational Safety and Health, which is intended to inform employers on measures to prevent accidents, bad health, and injuries at work, as well as how to meet legal responsibilities. See " IBEC Safety Guide ." christine.obrien@bakernet.com or nigel.moss@bakernet.com Alert Date: 7/1/01 IT - MIGRANTS INTERCEPTED OFF ITALY: On June 25, 2001, authorities in Italy reported capturing nearly 200 assumed migrants from Bangladesh and Afghanistan off the southern tip of the country. See " Migrants Captured Near Italy ." cristina.capitanio@bakernet.com or riccardo.sensi@bakernet.com Alert Date: 7/1/01 IT - EMPLOYEES CAN CHALLENGE THEIR DISMISSAL ALSO BY MEANS OF A TELEGRAM DICTATED ON THE PHONE BY A THIRD PERSON: On June 5, 2001, the Italian Supreme Court ruled that an employee can validly challenge their dismissal by means of a telegram if this is actually dictated and sent by the telephone set of a third per son, provided that the telegram clearly states the name of the employee and there is evidence (to be given in Court) that the latter had previously entrusted the third person with this charge. See " Decision 7620 ." massimiliano.biolchini@bakernet.com or paolo.soo.invernizzi@bakernet.com Alert Date: 7/1/01 IT - PRIVATE INVESTIGATIONS ON EMPLOYEES: The Italian Supreme Court ruled recently that employer can legitimately engage a private detective to conduct an investigation on an employee's working activity when there is a serious suspicion of any illegal activity against the employer (as in the case of insider trading, breach of confidentiality, theft, etc.). Until recently, the engagement of a private detective in labour investigations had been permitted by judges only to the limited purpose of checking the truthfulness of the employee's purported sickness, but not in other cases, since the collection of any information which is not strictly related to the performance of the employee's duties is severely banned by the law as a criminal offence. See " Decision 14383." carlo.marinelli@bakernet.com or umberto.percivalle@bakernet.com Alert Date: 7/1/01 IT - REGIONAL ALLOCATION OF WORK PERMITS FOR NON-EU CITIZENS: The Italian Ministry of Labour recently enacted an internal regulation which allocates to each Italian Regional administration the number of work permits to be issued in favour of non-EU citizens. According to law decree dated April 9, 2001, the total number of permits to be granted at the national level for the current year is 50,000 for non-seasonal self-employed and employed workers and 33,0000 for seasonal workers. See " Work Permits ." massimiliano.biolchini@bakernet.com or paolo.petrosillo@bakernet.com Alert Date: 7/1/01 IT - EMPLOYEE PRISONERS' RIGHT TO ANNUAL PAID HOLIDAYS: The Italian Constitutional Court recently ruled that article 20, paragraph 16 of Law 354/1975 is unconstitutional insofar as it does not grant a right to paid annual holidays to prisoners who carry out any working activity within the jail's administration (as hard labour was abolished in Italy decades ago). The Court determined that article 35 of the Italian Constitution protects "every kind of working activity" and that article 36 provides that "all employees have a right to annual paid holidays that cannot be waived," irrespective of the peculiarity of the working relationship and the conditions of its performance. massimiliano.biolchini@bakernet.com or alessia.raimondo@bakernet.com Alert Date: 7/1/01 NL - IT COMPANIES FAIL TO MEET STATUTORY REQUIREMENTS ON WORKS COUNCILS: Many newly established IT companies have been found to have breached the statutory requirement on setting up a works council. According to Dutch law, a works council must be established when a company employs 50 or more employees. Approximately 40 companies were recently inspected, more than half of which failed to comply with the Dutch statutory requirements on works councils. It also appears that many IT companies are unaware of Dutch statutory requirements regarding the establishment of a works council. mirjam.a.de.blecourt@bakernet.com or mirjana.maric@bakernet.com Alert Date: 7/1/01 NL - INCREASE OF FEMALE EMPLOYEES: Recent reports state that the expansion of jobs in Holland in the second half of 2000 is attributable to the female workforce. During this period the total number of jobs increased by almost 60,000 to reach a total figure of 7.4 million jobs. On the other hand the workforce is confronted with problems with long-term unemployed males who will find it increasingly difficulty to find employment. karin.w.m.bodewes@bakernet.com or svenne.korthalsaltes@bakernet.com Alert Date: 7/1/01 NL - LABOUR INSPECTION ON THE ROAD: Between the months of July and August of 2001, the Dutch Labour Inspection will visit approximately 1,300 companies in order to evaluate their labour conditions. Special attention will be given to employed minors. Targeted sectors will be the catering industry, supermarkets, recreation parks, farms, laundry services, and healthcare. karin.w.m.bodewes@bakernet.com or svenne.korthalsaltes@bakernet.com Alert Date: 7/1/01 NL - SOCIAL POLICY TEST OF COMPANIES: "FNV Bondgenoten," one of the largest Dutch trade unions in the private sector, is going to test the social aspects of company employment policies using a self-designed measuring instrument called "Social Policy Test." FNV Bondgenoten intends to enter into collective labor agreements only with companies that pursue sound social employment policies. mirjam.a.de.blecourt@bakernet.com or steffan.j.dejong@bakernet.com Alert Date: 7/1/01 PL - POLISH EMPLOYMENT GROUPS CREATE WORKFORCE INITIATIVE FOR 21ST CENTURY: Recently, Polish employment groups signed an agreement that serves as the foundation for the creation of the Staff of the 21st Century Initiative. The stated goal of the 21st Century Initiative is to stimulate the development and popularize knowledge of human resource management in Polish economic organizations and institutions. The initiative will spread their message through conferences and workshops promoting modern knowledge, preparing problem-oriented expert opinions concerning human resource management, and preparing and promoting publications on human resources. See " Focusing On Human Capital." agnieszka.duda@bakernet.com or jerzy.skrzypowski@bakernet.com Alert Date: 7/1/01 RO - ROMANIAN TRADE UNION MEMBERS ADOPT HUNGER STRIKE: On June 15, 2001, trade union leaders in Romania announced they will begin a hunger strike in response to positions of the American owner of a steel plant in Resita, which stopped steel production and refused to pay workers. The unionists will continue to strike until steel production resumes and workers salaries are paid. See " Union Members Adopt Hunger Strike ." julie.borozda@bakernet.com or katerina.lewenbuk@bakernet.com Alert Date: 7/1/01 RU - PROTESTERS DECLARE THAT GOVERNMENT'S VERSION OF THE LABOUR CODE VIOLATES WORKERS' RIGHTS: On June 19, 2001, the Russian State Duma announced that it was going to address the long-awaited Labour Code issue on July 5, 2001, as the government has now resolved its differences with the main labour unions. In response to that announcement, two unions which objected to the government's draft of the Labour Code organized protests in Moscow and other cities in Russia. See " Protesters Declare Labor Code Won't Work ." jean.brough@bakernet.com or katerina.p.lewinbuk@bakernet.com Alert Date: 7/1/01 RU - AIR CONTROLLERS STRIKE FOR BETTER PAY: On June 19, 2001, Russian air traffic controllers participated in hunger strikes or called in sick. According to their trade union, the workers chose these forms of protest because the Russian Air Code forbids air traffic controllers to strike. Salaries for air traffic controllers range from 1,500 rubles (approximately US$51) to 16,000 rubles per month. See " Air Controllers Strike ." carol.patterson@bakernet.com or katerina.p.lewinbuk@bakernet.com Alert Date: 7/1/01 RU - AEROFLOT THREATENS TO STRIKE: An airline technicians' union issued recent warnings to Aeroflot Airlines of a month-long strike on July 1, 2001, if management does not respond to employees' demands of improved working conditions and higher salaries. The union stated, however, that it would abide by the court decision if Aeroflot succeeded in obtaining the court's order on blocking the strike. See " Aeroflot Strike Threat ." jean.brough@bakernet.com or katerina.p.lewinbuk@bakernet.com Alert Date: 7/1/01 SE - VOLVO CUTS STAFF AS RESULT OF EUROPEAN ECONOMIC DOWNTURN: On June 1, 2001, Volvo announced that it was cutting an unspecified number of jobs in the coming weeks because of the slowing European economy. The company announced that it would cut many jobs throughout Europe because of the decreasing demand for heavy vehicle, bus, and construction machines. Volvo announced that it would not make any cutbacks in U.S. factories, saying that it expected an upturn during the fall of 2001." See " Volvo To Cut Staff Because Of Economic Downturn In Europe." sten.bauer@bakernet.com or niklas.lundquist@bakernet.com Alert Date: 7/1/01 UK - TEACHERS UNION LEADERS CALL ON NEW LABOUR GOVERNMENT TO MAKE EDUCATION A PRIORITY: On June 8, 2001, teachers' unions called upon the re-elected Labour Government to make education a priority by reducing staff shortages and making the teaching profession an attractive career again. Teacher union leaders announced they would like to support the Labour Government's attempts to raise standards in UK schools, but the unions are demanding that teachers be given more support than they have in years past. The General Secretary of the National Association of Schoolmasters Union of Women Teachers demanded the new Labour Government provide a fair contract to protect against excessive workloads, more support in dealing with discipline, and improved pay. See " Shortage Warning From Teachers ." christine.obrien@bakernet.com or john.evanson@bakernet.com Alert Date: 7/1/01 UK - UK UNION LEADER LAUNCHES WORKERS RIGHTS CAMPAGN: On June 9, 2001, a UK union leader launched a campaign to ensure British employees the same legal rights as those found elsewhere within the European Union. Roger Lyons, representative of the Manufacturing, Science, and Finance Union (MSF), is attempting to change the perception amongst businesses that Britain is soft towards lay-offs by requiring that employers consult workers regarding redundancies. This campaign comes in reaction to several recent substantial job cuts that were made without consultation. The campaign by the MSF would allow British unions to take employers to court for not consulting workers before announcing cutbacks, as is already the case in the European Union. See " New Workplace Rights Demanded ." sarah.gregory@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - SCOTTISH TEACHERS UNION VOTES TO BOYCOTT EXAM TESTING: On June 9, 2001, members of Scotland's largest teaching union voted to boycott internal assessments for students. The teachers expressed their dissatisfaction with the new testing plans by voting to boycott the internal assessments, which would put more emphasis on year-round pupil testing and require students pass a minimum of three internal assessments before being allowed to sit for the final exam. The teachers are concerned of the additional burden the assessment plan puts on them as well as the students. See " Teachers Vote For Boycott Of Exam Testing ." christine.obrien@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - BRITISH GOVERNMENT FACES SETBACK ON WORKERS RIGHTS: On June 8, 2001, the UK faced a setback as it became apparent that a European Union (EU) proposal regarding workers' rights was going to pass, a proposal fiercely opposed by British industry. Britain has been steadfastly opposed to the EU proposal which would require employers with more than 50 workers to consult their employees before announcing cutbacks. The British Government had been able to keep the issue from gaining support within the European Commission by forming an alliance with Germany, Denmark, and Ireland, but recent remarks by representatives from Denmark and Germany make it likely that a compromise may be reached in the near future allowing the proposal to pass. See " UK Faces Defeat On Workers ' Rights." sarah.gregory@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - UK ACADEMICS AGREE TO PAY OFFER: On June 6, 2001, academics in the UK voted to accept a pay deal that ensures a 4.3% pay raise and reforms the pay scales for higher education. Members of Natfhe, the UK higher education union, voted four-to-one in favor of the proposal, which will provide a staged increase in wages beginning in September of 2001. Natfhe began industrial actions in December of 2000 over pay raises and the restructuring of the pay scale, but called off the strikes in February of 2001 after talks began with employers. See " Academics Agree On Pay Offer ." michael.ingle@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - LOCAL GOVERNMENT WORKERS ACCEPT PAY DEAL AND END THREAT OF STRIKES: On June 5, 2001, local government workers accepted a pay deal that will raise wages 3.5% over the next year, assuaging concerns of strike actions across the UK. Approximately 1.2 million employees in Wales, England, and Northern Ireland accepted the pay deal, brokered after months of tense negotiations between union representatives and council bosses. Union leaders have called the new deal a just settlement, but acknowledged that there is still much work to be done to ensure that workers delivering vital services to their communities receive a fair wage. See " Local Government Workers Accept Pay Deal ." sarah.gregory@bakernet.com or john.evason@bakernet.com Alert Date: 7/1/01 UK - AIRLINE COMPENSATES PREGNANT STEWARDESSES: On June 5, 2001, British Airways agreed to compensate over 500 stewardesses who were transferred to lower-paid non-flight duties because they had become pregnant. British Airways brokered a deal with the Transport and General Workers Union (TGWU) after three years of negotiations that will cost British Airways ?2.3 million. British Airways was forced to negotiate the claims after the TGWU won an individual case in 1998. The airline had defended its policy of insisting that female staff refrain from flying once they become aware they are pregnant by saying that its concerns over health and safety are reinforced by a European Union directive. See " ?2.3 Million Victory For Pregnant Aircrew ." sarah.gregory@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - EMPLOYERS CRACK DOWN ON NET SURFING EMPLOYEES: On June 6, 2001, a recent survey of UK employers showed that 75% of information technology managers and corporate internet users feel that monitoring and filtering procedures are necessary. Increasing concerns over the amount of money and time wasted every year on internet surfing have resulted in a booming of the internet filtering industry. Many unions have opposed efforts by employers to monitor the surfing, saying that these techniques are resulting in intimidation and stress for employees. See " Company Crackdown On Staff Who Surf ." sarah.gregory@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - SCOTTISH SUPERMARKET STAFF TAKING ACTING LESSONS: On June 4, 2001, Scottish supermarket staff began taking acting lessons to improve the way they communicate with customers. Managers at Safeway stores in Edinburgh will be the first in the UK to be trained by thespians to attract customers to new areas where customers will be able to watch food made to order. Presentation skills will be taught to all manner of employees in the store to bring attention to new product lines of the business. Representatives at the Transport and General Workers Union criticized the idea as "bonkers." See " Supermarket Staff To Get Acting Lessons ." christine.obrien@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - GAY CHUNNEL STAFF GET EQUAL TRAVEL RIGHTS: As of June 1, 2001, travel concessions for Channel Tunnel staff are to be extended to same-sex partners, following talks between operator Eurotunnel and the Transport and General Workers' Union (TGWU). Eurotunnel staff and opposite-sex partners have recently been able to qualify for tunnel shuttle train one-way fares of just ?1, a concession now available for same-sex couples of three years or more. Eurotunnel representatives said that they were delighted to enact the measure, which removes discrimination between heterosexual and same-sex relationships. See " Gay Chunnel Staff Get Equal Travel Rights ." ellen.temperton@bakernet.com or john.evason@bakernet.com Alert Date: 7/1/01 UK - LONDON UNDERGROUND STRIKE AVERTED AFTER AGREEMENT WITH UNION: On June 2, 2001, London Underground workers called an end to two days of planned tube strikes following an agreement on jobs and safety. Representatives from the Rail Maritime and Transport Union (RMTU) announced the cancellation of the planned strikes after securing promises from London Underground management that staff would not face compulsory redundancies or job cuts which may undermine safety. The RMTU was concerned that proposals to semi-privatise the tube would lead to job losses which would compromise safety in the tunnel. See " Jobs Deal Ends Tube Strikes Threat ." peter.duff@bakernet.com or michael.ingle@bakernet.com Alert Date: 7/1/01 UK - NEW BLAIR REGIME PUTS MINIMUM WAGE AND UNION RECOGNITION AT TOP OF LABOUR AGENDA: On June 8, 2001, after being elected to a second term as British Prime Minister, Tony Blair said that workplace issues will be key to his party's agenda. At the top of the agenda are an increase in minimum wage and union recognition laws, which guarantee recognition if 40% of a company's workers in a certain department vote for the union. See " Blair 's Agenda." john.evason@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - UK GOVERNMENT SITE DISCRIMINATES: An Australian web expert recently made claims that the United Kingdom's government web site was poorly designed and discriminated against users with disabilities. Tom Worthington, an ANU academic, said that there are internationally recognized guidelines on how to provide access to the web for disabled people that the UK has not enforced. See " UK Government Site ." sarah.gregory@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - GOVERNMENT INCREASES MINIMUM PAY OF YOUTH: The National Minimum Wage for "young people" is to be increased from ?3.20 an hour to ?3.50 an hour from October of 2001. The government has accepted the Low Pay Commission's recommendation, which means that 140,000 young people across the UK will see their pay boosted by ?10.50 for a 35 hour week, a 9% increase. See " Young Workers Get Pay Increase ." ellen.temperton@bakernet.com or john.evason@bakernet.com Alert Date: 7/1/01 UK - CITY BROKER SALES SETTLES NAZI UNIFORM CLAIM: In a highly publicised claim by a former employee, City Broker Tullett & Tokyo Liberty, a city broker, recently settled the claim made by a former employee, Laurent Weinberger, who resigned after being given a different a job on less pay after refusing to put on a Nazi uniform. His lawyer said the case was a manifestation of a wider problem of a certain culture within the City of London. The terms of the settlement remain confidential. sarah.gregory@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - GOVERNMENT TO PROMOTE DISPUTE RESOLUTION: New moves to encourage dispute resolution and stem the rising number of employment disputes are to be examined by the UK Government. A main objective will be to resolve problems within the workplace rather than parties having to go through the tribunal system. The government says it will look closely at the whole process of employment dispute resolution and that the review will include ways of fostering workplace solutions to resolve disputes before they escalate to tribunal claims. john.evason@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - ECJ FOLLOWS ADVOCATE GENERAL'S OPINION IN BECTU CASE: An earlier Opinion of the Advocate General indicated that the UK provision whereby holiday entitlement does not accrue during the first 13 weeks of employment does not accord with the Working Time Directive has been followed recently by the European Court of Justice. This will mean that workers engaged on short term contracts will be entitled to take, or perhaps be recompensed for untaken holidays during their brief periods of employment. sarah.gregory@bakernet.com or ellen.temperton@bakernet.com Alert Date: 7/1/01 UK - RADIO PRESENTER SACKED FROM BBC RADIO WALES BECAUSE HE WAS "TOO ENGLISH": An award winning radio presenter who maintained that his show was axed because he was insufficiently Welsh when the radio station was looking for "welsh tonality" has brought a claim against BBC Radio Wales. While the radio station maintains that the programme simply did not fit the station's new agenda, this is just one more claim in a series of claims made by English workers under the Race Relations Act. sarah.gregory@bakernet.com or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - SCOTTISH COURT OF SESSION REVERSES DECISION ON SEXUAL ORIENTATION: In an important decision for employers, the Scottish Court of Session has reversed a Scottish EAT decision which held that discrimination on the basis of sexual orientation fell within the Sex Discrimination Act 1975. The Court of Session decision has confirmed that it does not. sarah.gregory@bakernetcom or christine.obrien@bakernet.com Alert Date: 7/1/01 UK - EUROPEAN COURT OF JUSTICE RULES THAT UK EMPLOYERS MUST PROVIDE SHORT TERM WORKERS WITH LEAVE: On June 26, 2001, the European Court of Justice ruled that UK employers must provide short-term workers with a paid vacation benefit or its cash equivalent. The British Chamber of Commerce has asserted that extending paid leave to short-term workers would cause difficulties for employers, particularly those that employ working parents. See " Broadcasting, Entertainment, Cinematographic & Theatre Union v. Secretary Of State For Trade And Industry." francois.gabriel@bakernet.com or john.evanson@bakernet.com Alert Date: 7/1/01 Africa_Middle_EastAfrica/Middle East top BH - TRAINING PLANS TO INTEGRATE BAHRAINIS INTO LABOUR MARKET: On June 23, 2001, the Ibn Khuldoon Social Centre in Arad announced the centre is launching four new programmes designed to train and rehabilitate citizens in the labour market. Several other social centers are following suit, offering various training programmes intended to integrate Bahrainis into the job market. See " Training For Bahraini Citizens ." samir.hamza@bakernet.com or hazim.rizkana@bakernet.com Alert Date: 7/1/01 BH - BAHRAIN CRACKS DOWN ON FREE VISA CYCLE: On June 26, 2001, Bahrain's Labour and Social Affairs Minister announced a crack down on illegal visas. The Government is offering a six month grace period for employers to apply to legalise their workers, without penalty. See " Free Visa Crack Down ." samir.hamza@bakernet.com or hazim.rizkana@bakernet.com Alert Date: 7/1/01 CF - ACTIVISTS CLAIM THAT TRADE UNION RIGHTS ARE LACKING IN CENTRAL AFRICAN REPUBLIC: Activists claim that the recent arrest of the General Secretary of the Workers' Trade Union Centre of Central Africa (USTC) brings to light the lack of respect for human rights in the Central African Republic. The USTC is the country's largest national trade union centre and is one of five national centres asking the Central African government to pay several months worth of salary arrears owed to civil servants. See " Central African Republic: Appeal For The Respect Of Trade Union Rights." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 EG - EGYPTIAN WORKERS ABROAD WILL BE INSURED: Recently, Egypt's Prime Minister announced that all Egyptian expatriate workers will need to have insurance. He said that these expatriate workers are one of the country's most important assets because they earn money for themselves and send remittances back to Egypt, earning money for the national economy as well. See " Egyptian Workers Will Get Insurance ." hazim.rizkana@bakernet.com or samir.hamza@bakernet.com Alert Date: 7/1/01 GA - GABON UNDER SCRUTINY BY WORLD UNION: On June 25, 2001, the International Confederation of Free Trade Unions (ICFTU) published a report asserting that Gabon is not complying with internationally recognised core labour standards. The ICFTU report calls on the World Trade Organisation and the International Labour Organisation to require Gabon to address the problems of basic workers rights, especially freedom of association, the right to collective bargaining, and safeguards against discrimination, child labour, and forced labour. See " Gabon Under Scrutiny By World Union ." william.r.watson@bakernet.com or jorge.a.de.regil@bakernet.com Alert Date: 7/1/01 KE - PENSION AND MEDICAL BENEFITS SET FOR REFORM: On June 11, 2001, the Kenyan Government announced its intent to begin reforming pensions and medical benefits to improve entitlements to its 425,000 public servants. The government will begin two new studies, one to advise on options for administering future pensions, and the other to determine the viability of establishing medical insurance for these workers. See " Pension And Medical Reforms ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 MW - CHILD LABOUR RAMPANT IN MALAWI'S TOBACCO INDUSTRY: On June 5, 2001, the Chief Executive of the International Tobacco Growers in Africa, Garbbett Thyangathya, admitted that the tobacco industry is employing children in tobacco estates or in selling cigarettes at marketplaces to supplement their families' income. The Ministry of Gender and Youth is now aware of the situation and plans to implement measures to prosecute those that continue to employ children in Africa. See " Tobacco Industry Employs Children ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 NG - CHEVRON WORKERS PROTEST WELFARE PACKAGES: On June 18, 2001, workers of Chevron Nigeria Limited became engaged in an industrial dispute with management over welfare-related issues. The protest was directed at resolving the negative impact of the on-going merger arrangement between Chevron and Texaco on Nigerian workers. See " Workers Tackle Over Welfare Packages ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 NG - NLC WANTS SACKED CIVIL SERVANTS REINSTATED: The Nigeria Labour Congress (NLC) has recently called on the Nigerian Government to release a report reviewing cases of civil servants affected by cutbacks. The NLC is asking that these workers be reinstated immediately. See " NLC Calls For Worker Recall ." hazim.rizkana@bakernet.com or samir.hamza@bakernet.com Alert Date: 7/1/01 SD - OIL COMPANIES ARE TARGETS IN THE WAR AGAINST THE GOVERNMENT: On June 23, 2001, the leader of the Sudan People's Liberation Movement/Army (APLM/A), John Garang, identified foreign oil companies and their workers as "legitimate targets" in the war against the Khartoum government. Garang says these oil companies are a threat to the APLM/A because they continue to drill for oil in the region. See " Oil Companies 'Legitimate Targets'." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 SY - SYRIAN JOBLESS RATE IS AS LEAST 20 PERCENT: On June 7, 2001, economic expert Nabil Marzuk announced that the unemployment rate in Syria had reached 20% and could increase. Experts believe that Syria needs 6% annual economic growth to absorb the 300,000 new workers that enter the market each year or the unemployment rate will continue to increase. See " Unemployment Rate In Syria ." samir.hamza@bakernet.com or hazim.rizkama@bakernet.com Alert Date: 7/1/01 SZ - ANTI-UNION DECREE INTERNATIONALLY CONDEMNED: On June 26, 2001, following a report from the International Confederation of Free Trade Union (ICFTU) condemning Swaziland for alleged non-union measures, news of international solidarity has began to build momentum in the region. The ICFTU report highlighted Swaziland's union rights record by focusing on severe anti-union laws and actions. See " Anti-Union Decree Internationally Condemned ." william.r.watson@bakernet.com or jorge.a.de.regil@bakernet.com Alert Date: 7/1/01 TR - INTERNATIONAL UNION CRITICIZES NATIONAL SECURITY RATIONALE FOR BANNING STRIKE ACTION: On June 8, 2001, the Turkish Government decreed a two-month suspension of a major strike in the country's glass industry, basing its decision upon concerns for national security. The International Federation of Chemical Mine and General Workers' Union (ICEM) criticized the ban of the strike action, saying that the Turkish Government routinely abuses its power to cancel strikes using national security as a rationale. Union leaders have called the rationale absurd, and have been actively courting international support for the striking workers in Turkey. ICEM also criticized the procedures for resolving labour disputes, saying that Turkey's official arbitrators rarely decide a dispute in a union's favor. See " Turkish Glass Strike Banned ." akos.fehervary@bakernet.com or geza.kajtar@bakernet.com Alert Date: 7/1/01 UG - SALARY SCALES TO CHANGE: On June 14, 2001, the Vice-President of Uganda said that the government will begin to scale workers' salaries according to the type of work performed. The Cabinet will discuss a policy aimed at changing salaries so that civil servants working in risky areas, or for longer hours, would be highly paid. Consequently, salaries for judges and politicians would not increase until those in lower classes have coverage. See " Salary Changes ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZA - NUMSA ISSUES 48-HOUR NOTICE FOR A STRIKE: On June 18, 2001, the National Union of Metal Workers South Africa gave a 48-hour notice for a protected strike at XStrata company in Rustenburg. NUMSA and the company have thus far failed to resolve a two-month old dispute over a voluntary separation package and the lay-off of 200 workers. See " Xstrata Prepares For Strike ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZM - SOCIAL SERVICES CRIPPLED BY THREE-WEEK STRIKE: The recent crisis in Zambia has continued as schools, hospitals, and other government services were damaged by the three-week long strike. An estimated 80,000 nurses, teachers, and government workers began to strike in mid-May to gain a 100 percent increase in wages. Many of these public servants cannot afford to eat two meals a day, as most are paid less than US$50 each month. See " Crisis In Zambia Continues ." karim.nassar@bakernet.com or nassar.alfaraj@bakernet.com Alert Date: 7/1/01 ZM - ZIMBABWEAN UNIONS WARN OF PROTESTS OVER FUEL: Zimbabwe's primary labour federation, the Zimbabwe Confederation of Trade Unions, recently stated that it feared a violent reaction if the government did not eliminate a 70 percent increase in the price of petrol. The trade unions also threatened a two-day national strike to protest price increases on regular petrol, diesel, and other fuels. See " Fuel Prices Sky-Rocket; Union Threatens Protest ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZM - HEALTH WORKERS WILL NOT STRIKE: The NDOLA Central Hospital (NCH) nurses and paramedics recently discarded ideas of going on strike after learning that the Zambian Government has purportedly released K$187 million which may be used to correct disparities in their salaries. See " Health Workers Choose Not To Strike ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZM - ZCTU GIVES GOVERNMENT ULTIMATUM: The Zambia Congress of Trade Unions (ZCTU) recently has given the Zambian Government a two month deadline to resume operations at Nitrogen Chemicals of Zambia (NCZ) and the Kafue Textiles of Zambia (KTZ). The ZCTU blames economic structural reform policies for the decline in living standards for the two industries. See " ZCTU Issues Ultimatum ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZM - CSUZ AND STATE NEGOTIATING PAY INCREASE: On June 22, 2001, the Civil Servants Union of Zambia (CSUZ) denied reports that the Zambian Government had issued a 95 percent pay increase and should call off their current strike. The CSUZ President stated that negotiations were still in progress with the government. " Pay Increase Still In Works ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZW - ZIMBABWE WAR VETERANS CONTINUE COMPANY RAIDS: On June 5, 2001, the Zimbabwe Federation of Trade Unions (ZFTU), a labour organization made up of war veterans who fought against the white minority rule in the 1970's, took over the Zimbabwe Congress of Trade Unions (ZCTU). The ZCTU has been accused of sacrificing workers jobs and supporting those that oppose Zimbabwe's president. Joseph Chinotimba, the war veterans' leader, has made it known that the ZFTU will represent the interests of the workers. See " Labour Raids Continue ." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 ZW - VETERANS' FARM SIEGE CONTINUES TO THREATEN JOBS AND OUTPUT: On June 5, 2001, war veterans continued their takeover of a farm in Bindura threatening crop production, risking about US$90 million in annual aid, and potentially leaving 400 employees without work. Some have speculated that this latest takeover is politically motivated since it has been rumored that Elliot Manyika, a candidate for the Bindura parliamentary, sanctioned this farm invasion as part of his campaign. See " Vets ' Farm Siege." andrew.j.boling@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 South_AmericaSouth America top AR - PUBLIC TRANSPORTATION STRIKE PARALYZES ARGENTINA: On June 9, 2001, Argentina's largest national strike in recent history continued as tens of thousands of public transportation workers continued their work stoppage. The union decided to call the strike after the Argentinine Government refused to provide enough jobs and good wages for workers. Argentina's employment situation has worsened in recent years, with the country in the midst of a recession that has lasted three years and has dropped the unemployment rate to 14.7%. See " Argentina Paralyzed By Strike ." carlos.dodds@bakernet.com or daniel.orlansky@bakernet.com Alert Date: 7/1/01 AR - PRELIMINARY DETECTION IS INCORPORATED INTO MANDATORY MEDICAL PROGRAM: Recently, a new law pertaining to health insurance providers was incorporated into the Argentine Mandatory Medical Program. Resolution 939/00 establishes that health insurance providers and their associations have a duty to include new provisions of hearing aids and hearing prosthesis, as well as hearing and speech rehabilitation therapy into their benefits packages. See " Resolution 939/00 ." carlos.dodds@bakernet.com or micaela.geiderman@bakernet.com Alert Date: 7/1/01 AR - EXECUTIVE ORDER REGULATES WORKERS COMPENSATION: Argentina recently enacted Executive Order 410/01, which regulates various aspects of worker's compensation law. The new Executive Order addresses pension benefits, prevention programs, and health issues. See " Executive Order 410/01 ." daniel.orlansky@bakernet.com or micaela.geiderman@bakernet.com Alert Date: 7/1/01 AR - DECREE REGULATES LAW 25.191: A decree recently passed in Argentina regulates Law 25.191, which creates the National Register of Rural Workers and Employers and implements mandatory use of the booklet of rural workers. See " Decree Law ." daniel.orlansky@bakernet.com or carlos.dodds@bakernet.com Alert Date: 7/1/01 AR - EMPLOYMENT AGENCIES ARE REGULATED: Argentina recently enacted a new law to enforce provisions of an agreement establishing laws for employment agencies. See " Executive Order 489/01 ." micaela.geiderman@bakernet.com or carlos.dodds@bakernet.com Alert Date: 7/1/01 AR - LAW ORDERS CREATION OF ADVISORY UNIT: Argentine legislators recently enacted Regulation 222/01, which orders the creation of an Advisory Unit of Medical Commissions that will issue preliminary legal opinions for settling labor disputes. See " Regulation 222/01 ." daniel.orlansky@bakernet.com or micaela.geiderman@bakernet.com Alert Date: 7/1/01 BO - BOLIVIAN MINERS CLASH WITH POLICE: On June 9, 2001, almost 5,000 Bolivian miners clashed with police and used explosives to destroy parts of a courthouse in La Paz. The miners, who came from all across Bolivia to demand that the Bolivian Government provide financing and equipment to help revive the mining industry, invaded La Paz' main plaza and shouted criticisms at Bolivian President Hugo Banzer. The miners are employed by cooperatives that have been affected by the Bolivian economic slump, and have insisted that they would remain in La Paz until their demands have been met. See " Miners Wreak Havoc ." manuel.diaz@bakernet.com or carlos.felce@bakernet.com Alert Date: 7/1/01 BR - LABOUR COURT HOLDINGS AVAILABLE ON THE INTERNET: The Superior Court (TST) will allow a database of legal decisions from TST and the regional labour courts to be available on TST's website. The database may be accessed at www.tst.gov.br/brs/juni.html . sergio.caiuby@bakernet.com or augusto.m.dias-netto@bakernet.com Alert Date: 7/1/01 CL - LABOR UNITES AGAINST U.S.: On June 8, 2001, U.S. and Chilean trade union officials said labour groups from both countries are taking a united stance to fight proposed free trade agreements that do not include sufficient protection for workers. Trade Unions have met with members of the U.S. Congress to urge further debate on the matter and to encourage both nations to release details of the negotiations to the public. See " U.S.-Chile Free Trade Pacts." ricardo.oavalle@bakernet.com or ignacio.garcia@bakernet.com Alert Date: 7/1/01 CL - CHILE TRADE UNIONS RESPOND TO GLOBALISATION: The Labour and Society Programme of Chile recently published a response to globalization from a trade union perspective. The composition begins with a historical account of how Chile enters the process of globalization, democracy and development in Chile, and finally the new directions of social and economic development. fernando.saenz@bakernet.com or ricardo.ovalle@bakernet.com Alert Date: 7/1/01 CO - THOUSANDS OF COLOMBIANS PROTEST IMF BUDGET REFORMS: On June 8, 2001, thousands of Colombian teachers, state workers, and students protested budget reforms mandated in the agreements between Colombia and the International Monetary Fund (IMF). The protests were against a new law that would control the growth of federal payments to states and municipalities. Over 300,000 teachers and 125,000 public health workers have been striking since May of 2001 to protest the proposal, enacted as part of a deficit-cutting agreement with the IMF in return for loan assistance. See " Colombia Hit By Huge Protests." antonio.duarte@bakernet.com or jorge.rodriquez@bakernet.com Alert Date: 7/1/01 CO - COLUMBIAN TRADE UNIONIST ASSASSINATED: On June 22, 2001, the president of the National Union of Drinks Industry Workers of Columbia, Oscar Dario Soto, was assassinated. The International Union of Food (IUF) has written to the president of Columbia asking for a thorough investigation into the matter. See " Trade Unionist Assassinated." antonio.duarte@bakernet.com or jorge.rodriguez@bakernet.com Alert Date: 7/1/01 CO - GLOBAL UNIONS URGE ILO INQUIRY: Global unions have recently called on the International Labour Organisation (ILO) to investigate the alleged widespread murder and abduction of trade unionists in Columbia. The unions are asking the ILO to investigate all aspects of trade union rights in Columbia, especially looking into the government's hesitation to take measures guaranteeing the security of trade unionists. See " Unions Ask ILO For Help." j.richard.hammet@bakernet.com or antonio.duarte@bakernet.com Alert Date: 7/1/01 PE - UNIONS FEARFUL OVER POTENTIAL ECONOMICS MINISTER: On June 8, 2001, Peruvian labour leaders became fearful over the possibility that Pedro Pablo Kuczynski may take over the economics ministry in the incoming government. Labour leaders fear that Kuczynski would trample workers rights, saying that he has indicated in the past that job security for workers is not a major concern for him. Influential members of the financial system were pressing for Peruvian President-elect Alejandro Toledo to name Kuczynski as head of the economics ministry, saying that he is the only salvation of the country after months of corruption scandals. See " Peru 's Unions Fear Kuczynski As Economics Minister." manuel.diaz@bakernet.com or carlos.felce@bakernet.com Alert Date: 7/1/01 VE - VENEZUELAN UNIONS DEMAND 38% INCREASE IN MINIMUM WAGE: On June 5, 2001, Venezuelan labour unions demanded a 38% increase in the minimum wage, to an minimum of 200,000 bolivars per month for workers. Even though a 10% increase is expected to be decreed soon, the Venezuelan unions have rejected this amount as too small, saying it would only allow the average Venezuelan family of five to cover 70% of basic food costs. The business sector is opposed to further rises in the minimum wage, saying that the foundering state of the Venezuelan economy could not support such a large increase. See " Venezuela Unions Demand 38% Minimum Wage Hike ." manuel.diaz@bakernet.com or carlos.felce@bakernet.com Alert Date: 7/1/01 VE - VENEZUELAN UNION SEEKS SUPPORT: On June 7, 2001, the International Metalworkers Federation (IMFed) asked its affiliates to support striking members of the Venezuelan steelworkers union SUTISS. The IMFed is seeking support for SUTISS, which for six months has unsuccessfully attempted to engage the management at the SIDOR steel plant in discussions over pay and working conditions. The IMFed also criticizes the leadership of Venezuelan President Hugo Chavez, mostly for his anti-union policies and demands upon the Venezuelan trade unions. See " Striking Steelworkers Need Support ." manuel.diaz@bakernet.com or carlos.felce@bakernet.com Alert Date: 7/1/01 North_AmericaNorth America top CA - GLOBAL-GIX CANADA INC. FINED CA$64,000 FOR HEALTH AND SAFETY VIOLATIONS: Global-Gix Canada, Inc., a company that shreds metal prior to its disposal or reuse in industry, was recently fined CA$64,000 for a violation of the Occupational Health and Safety Act. After an employee suffered serious head injuries from using a machine, Global-Gix Canada, Inc. pleaded guilty to failing to shield or guard the shredding machine so that material being processed could not endanger a worker. See " Global-Gix Fined For Safety Violations." kevin.b.coon@bakernet.com or william.r.watson@bakernet.com Alert Date: 7/1/01 CA - NEWMONT CANADA LIMITED FINED CA$75,000 FOR HEALTH AND SAFETY VIOLATION: On June 11, 2001, Newmont Canada Limited, an Ontario corporation that owns and operates Golden Giant Mine, was fined CA$75,000 for a violation of the Occupational Health and Safety Act when a worker suffered serious eye injuries. The company pleaded guilty to failing to take reasonable precaution of requiring a worker to wear a full face shield or other equipment that would protect him from facial damages. See " Newmont Fined For Safety Violation." kevin.b.coon@bakernet.com or william.r.watson@bakernet.com Alert Date: 7/1/01 CA - TRIBUNAL TO EXAMINE WHETHER HATE MESSAGES ON A WEB SITE CREATE EMPLOYER LIABILITY FOR DISCRIMINATION: In Vancouver, a tribunal will look into the complaint of Mark Schnell who claims that Machiavelli and Associates Emprize Inc. and John Micka discriminated against him by communicating messages on a Web site that are likely to expose persons to hatred and contempt based on their sexual orientation. Mr. Schnell visited the Web site in question on numerous occasions, noting the offensive and derogatory nature of the comments, as well as the implication that homosexuals are pedophiles. See " Hate Messages ." david.t.cote@bakernet.com or cheryl.j.elliott@bakernet.com Alert Date: 7/1/01 CA - CANADIAN UNEMPLOYMENT RATE UNCHANGED: On June 8, 2001, Statistics Canada reported the unemployment rate and size of labour force in Canada remained at 7% for the third consecutive month. This leaves employment up 0.3% over the first five months of 2001. See " Canadian Unemployment Rate Unchanged ." david.t.cote@bakernet.com or stewart.d.saxe@bakernet.com Alert Date: 7/1/01 CA - CANADIAN EMPLOYERS FACE SHORTAGE OF IT WORKERS: On June 6, 2001, Paul Swinwood, president of Software Human Resource Council, reported that based on several recent surveys, Canadian employers are facing a severe shortage of qualified information technology workers. Swinwood also reported that there are no indications of a slow down in the market. See " Survey Of IT Occupations." stewart.d.saxe@bakernet.com or cheryl.j.elliott@bakernet.com Alert Date: 7/1/01 CA - RULING ON ARBITRATOR'S DUTIES: On June 19, 2001, the Ontario Court of Appeal ruled in Parry Sound v. OPS on an arbitrator's right and obligation to interpret and apply employment-related statutes outside the Labour Relations Act. The ruling indicated that arbitrators have broad powers in deciding such questions. See " Parry Sound v. OPS ." neal.sommer@bakernet.com or kevin.coon@bakernet.com Alert Date: 7/1/01 CA - NEW HOLIDAY OBSERVANCE: Canada's National holiday, Canada Day, will be observed on July 2, 2001. Ordinarily Canada Day is observed on July 1 in each year (the anniversary of Confederation), but because July 1, 2001 is a Sunday, the holiday will be observed on Monday July 2, 2001. Each province establishes rules for employees' eligibility for a paid holiday, and this holiday is no exception. See " Canada Day." neal.sommer@bakernet.com or stewart.saxe@bakernet.com Alert Date: 7/1/01 CA - BILL 68 PASSES AND WORKERS PROMISE DEFIANCE: The Nova Scotia Government's anti-strike legislation, Bill 68, was passed on June 27, 2001, but a union representing health-care workers is urging its members to defy the legislation and stay on the picket line. The bill makes it illegal to continue to strike. Anyone who violates it faces stiff penalties and fines that could be up to CA$2000 a day. The bill also gives the provincial cabinet power to impose a wage settlement. See " Bill 68 ." david.t.cote@bakernet.com or cheryl.j.elliott@bakernet.com Alert Date: 7/1/01 CA - GOVERNMENT ACTS WILL LEVEL THE PLAYING FIELD FOR CONTRACTORS: On June 14, 2001, Canadian Labour Minister Chris Stockwell announced that Ontario will be taking action to level the playing field for contractors and bulk truckers by making certain that all will pay their fair share of insurance premiums and retail sales taxes. See " Act Evens Playing Field." stewart.d.saxe@bakernet.com or cheryl.j.elliot@bakernet.com Alert Date: 7/1/01 MX - U.S. LIFTS SOME LIMITS ON MEXICAN CARRIERS: On June 6, 2001, the Bush Administration announced that Mexican firms with operations in the United States may apply for authority to provide truck services for the transportation of international cargo. These firms may also apply to provide bus services between certain points in the United States. The announcement is an attempt to meet NAFTA provisions imposed in 1995. See " Restrictions Lifted On Mexican Carriers ." manuel.limon@bakernet.com or rene.x.perez-ruiz@bakernet.com Alert Date: 7/1/01 MX - WORLD BANK ENCOURAGES MEXICO TO END COLLECTIVE CONTRACTS AND LABOUR BENEFITS: Representatives of the World Bank recently submitted a report to Mexican President Vicente Fox including recommendations on labour policy and for increasing the flexibility of Mexican labour. The report recommends the elimination of regulations requiring severance pay, collective bargaining, exclusion contracts, benefits, and employer payments to social security and housing plans. The report suggested that North American investors who would otherwise be attracted to Mexico under NAFTA regulations are put off by domestic regulations, and that the elimination of many of these regulations as well as making Mexican salary schemes more flexible, would encourage economic growth throughout Mexico. See " World Bank Urges End To Collective Contracts And Labour Benefits In Mexico." manual.limon@bakernet.com or jorge.de.regil@bakernet.com Alert Date: 7/1/01 MX - MEXICAN AIRLINE STRIKE ENDS: On June 2, 2001, flight attendants for Mexico's largest airline ended a two-day strike that stranded thousands of passengers throughout Mexico. The flight attendants accepted a new contract that will raise wages 9.5% after negotiations that lasted more than six hours. AeroMexico originally had offered a 6.5% salary increase, while the flight attendant union was looking for a 30% increase. The strike by the 1,500 flight attendants caused the cancellation of over 250 flights and cost AeroMexico over US$10.2 million in lost business. See " Mexico Airline Strike Ends ." francisco.j.legarreta@bakernet.com or jorge.a.de.regil@bakernet.com Alert Date: 7/1/01 MX - MEXICO AND THE U.S. ANNOUNCE PLANS TO REDUCE MIGRANT DEATHS: On June 22, 2001, leaders from Mexico and the U.S. announced plans to reduce the number of illegal migrant deaths through increased border security and revisions of border policies. See " Mexican Migration ." betsy.morgan@bakernet.com or lynda.s.zengerle@bakernet.com Alert Date: 7/1/01 US - NAVAL RESERVE MEMBER TRANSFERRED TO LESS FAVORABLE JOB HAS CASE REINSTATED UNDER USERRA: In a recent ruling, the U.S. Court of Appeals for the Fourth Circuit determined that a U.S. Naval Reserve member who was transferred to a job with less favorable working conditions upon his return from military leave is entitled to go to trial on his claim that his transfer was motivated by his military obligations. The case was decided under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), which prohibits adverse employment actions where the employee's military status is a motivating factor in the decision. See " Hill v. Michelin North America, Inc. " richard.tuschman@bakernet.com or neil.mcguinness@bakernet.com Alert Date: 7/1/01 US - DISCHARGE OF SUPERVISOR WHO ACCOMMODATED DISABLED EMPLOYEE VIOLATED ADA: In Foster v. Time Warner Entertainment Co. , the U.S.Court of Appeals for the Eighth Circuit recently affirmed a verdict of US$244,500 to a supervisor who was fired because she made scheduling accommodations for an epileptic employee. The plaintiff was also awarded punitive damages of US$136,000 because there was evidence that management disregarded the company's interna l policy on the Americans With Disabilities Act. jill.s.walschlager@bakernet.com or kevin.s.simon@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT RULES THAT EMPLOYEE INELIGIBLE FOR STATUTORY FMLA LEAVE HAS CONTRACTUAL FMLA RIGHTS: In a recent decision, the U.S. Court of Appeals for the Seventh Circuit ruled that an employee who was ineligible for leave under the Family and Medical Leave Act of 1993 (FMLA) (because her employer employed less than 50 employees within 75 miles of the store in which the employee worked) nevertheless had contractual FMLA rights under her employer's Summary Plan Description (SPD) of employee benefits. The court held that because the SPD promised employees FMLA rights without any jurisdictional requirement, and because the company acted as if the employee had FMLA rights (by supplying her with FMLA forms to fill out), the SPD was an enforceable contract that gave the employee the right to request leave under the FMLA. See " Thomas v. Pearle Vision, Inc. " peter.j.gillespie@bakernet.com or craig.r.annunziata@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT THROWS OUT SYMPHONY EMPLOYEE'S HARASSMENT CLAIM: The U.S. Court of Appeals for the Seventh Circuit recently affirmed summary judgment for the Northwest Indiana Symphony Society in a case where a former male employee claimed harassment by his female supervisor. The court held that the plaintiff failed to establish a hostile work environment because only someone "mysteriously aloof from contemporary American popular culture in all its sex-saturated vulgarity" would find the alleged harasser's actions substantially distressing. See " Male vs. Female Harassment ." gerald.l.maatman@bakernet.com or lisa.s.brogan@bakernet.com Alert Date: 7/1/01 US - DEPARTMENT OF LABOR SETS UP HOTLINE FOR NUCLEAR ENERGY WORKERS: The U.S. Department of Labor (DOL) recently established a toll-free hotline at 866-888-3322 to field calls from nuclear energy workers seeking information on a new compensation program that will provide benefits for workers who became ill after being exposed to toxic substances on the job. See " DOL Program For Nuclear Workers." brian.s.arbetter@bakernet.com or j.richard.hammet@bakernet.com Alert Date: 7/1/01 US - LOUISIANA MOVES ONE STEP CLOSER TO BANNING GENETIC BIAS: The Louisiana Senate approved a bill recently that bans employment discrimination on the basis of an employee's genetic information. The bill, which had previously been passed by the House, now goes to the state's governor for approval. See " Louisiana Genetic Discrimination Ban ." charlene.s.tsang@bakernet.com or david.quan@bakernet.com Alert Date: 7/1/01 US - BIRTHDATES MAY BE USED AS TIEBREAKER IN AWARDING PROMOTIONS: The U.S. Court of Appeals for the Seventh Circuit recently upheld Chicago's use of employees' birthdates as a tiebreaker in making certain promotion decisions. The court determined that the city's practice of promoting the older employee with the same credentials and seniority was not discriminatory. The court noted that using date of birth as a tie breaker promoted a uniform policy and was widely accepted as fair. See " Birthday Tie-Breaker ." michael.a.pollard@bakernet.com or gina.l.knight@bakernet.com Alert Date: 7/1/01 US - EROSION IN EMPLOYEE SPONSORED HEALTH BENEFITS: The U.S. Government Accounting Office recently released a report showing that despite a sustained economy and several years of low rates of increase in health insurance premiums, there is a continuing decline in the availability of employer-sponsored retiree health benefits. See " Retiree Health Benefits: Employer-Sponsored Benefits May Be Vulnerable To Further Erosion." maura.ann.mcbreen@bakernet.com or david.w.ellis@bakernet.com Alert Date: 7/1/01 US - MORE WORKERS LOSE JOBS: The U.S. Department of Labor's Bureau of Labor Statistics reported that although the total number of mass lay-offs declined in April of 2001, the average size of each lay-off was larger than in March and thus the number of workers losing jobs increased from 171,466 in March to 175,064 in April. See " Mass Lay-Offs." brian.s.arbetter@bakernet.com or steve.a.miller@bakernet.com Alert Date: 7/1/01 US - IMMIGRANT WORKERS TO PROCEED WITH CLASS ACTION MINIMUM WAGE SUIT: A federal judge for the U.S. District Court in Southern District of New York ruled recently that unskilled immigrant workers who are allegedly paid US$1 to US$2 an hour for delivering grocery and drug store orders can proceed with class action claims under the Fair Labor Standards Act and New York State law. See " Ansoumana v. Gristede's Operating Corp ." robert.p.lewis@bakernet.com or michael.a.duffy@bakernet.com Alert Date: 7/1/01 US - PREMIUM VISA APPLICATION PROCESSING: On June 1, 2001, the U.S. Immigration and Naturalization Service launched a new premium processing service for employment-based visas in which it guarantees that applications will be processed within 15 calendar days for a US$1,000 fee. See " Establishing Premium Processing Service For Employment Based Petitions And Applications." betsy.s.morgan@bakernet.com or lynda.zengerle@bakernet.com Alert Date: 7/1/01 US - SUPREME COURT INVALIDATES PORTION OF NLRB'S TEST FOR DETERMINING WHETHER AN EMPLOYEE IS A SUPERVISOR AND THUS EXEMPT FROM UNIONIZATION: The U.S. Supreme Court recently issued a decision rejecting, in part, the National Labor Relations Board's test for determining supervisory status under the National Labor Relations Act. This decision is significant because employees who are deemed to be supervisors under the Act are exempt from its coverage, and thus from unionization. Specifically, the Supreme Court invalidated the Board's practice of excluding employees from the definition of "supervisor" where they exercise ordinary professional or technical judgment in directing less-skilled employees to deliver services in accordance with employer-specified standards. See " NLRB Supervisor Case ." brian.s.arbetter@bakernet.com or laurence.e.stuart@bakernet.com Alert Date: 7/1/01 US - COLORADO SUPREME COURT THROWS OUT LAW PROHIBITING RESIDENTIAL UNION PICKETING: The Colorado Supreme Court held recently that a state law prohibiting all labor picketing in residential areas--whether peaceful or not--violates the free speech and equal protection guarantees of the U.S. Constitution. Affirming the state appeals court, the Colorado Supreme Court struck down an injunction prohibiting striking members of United Steelworkers Locals 2102 and 3287 from picketing at the homes of workers who crossed the picket line. See " Colorado Strike Case ." j.richard.hammett@bakernet.com or howard.f.fine@bakernet.com Alert Date: 7/1/01 US - FBI REPORTS THAT HACKING INCIDENTS BY DISGRUNTLED LAID-OFF EMPLOYEES IS ON THE RISE: On June 3, 2001, the FBI issued a statement citing that the most common cause of computer hacking on corporate networks is a disgruntled laid-off or terminated employee. "The whole nature of computer crimes has changed," said Agent Greg Walton of the FBI's San Francisco Bay Area computer intrusion squad. "The problem at big companies is, the network administrator is probably the last guy who finds out you got fired, and doesn't cut off your access. Or it's the network administrator who gets fired, and he has access." See " Computer Hacking ." andrew.j.boling@bakernet.com or michael.j.wagner@bakernet.com Alert Date: 7/1/01 US - NEBRASKA ENACTS LAW PROHIBITING DISCRIMINATION AGAINST EMPLOYEES AND APPLICANTS ON THE BASIS OF GENETIC INFORMATION: Nebraska recently enacted a law prohibiting employers from discriminating against applicants and employees on the basis of genetic information that is unrelated to job duties. The law also prohibits employers from requiring applicants and employees to submit to genetic testing as a condition of employment or promotion. The law is scheduled to take effect on September 1, 2001. See " LB 432 ." gerald.l.maatman@bakernet.com or gina.l.knight@bakernet.com Alert Date: 7/1/01 US - TEXAS INCREASES ITS MINIMUM WAGE TO MATCH FEDERAL LEVELS: Texas recently enacted a law raising its minimum wage to match the levels set by federal law under the Fair Labor Standards Act. This new law is largely symbolic, as Texas employers have historically already had to comply with the federal minimum wage levels ever since they exceeded the Texas levels. Prior to the new law, Texas minimum wage levels had been set at US$3.35 per hour for nonexempt employees and US$1.68 per hour for tipped employees. Current federal law sets these levels at US$5.15 per hour and US$2.13 per hour, respectively. See " Bill HB533 ." jordan.cowman@bakernet.com or charlene.tsang@bakernet.com Alert Date: 7/1/01 US - LAY-OFFS DROPPED BY 52% IN MAY OF 2001: In a report released on June 4, 2001, outplacement firm Challenger, Gray announced that lay-offs by U.S. companies tumbled 52% in May of 2001 to 80,140 after hitting their highest monthly count in eight years in April. See " U.S. Lay-Off Levels ." gerald.l.maatman@bakernet.com or cynthia.l.jackson@bakernet.com Alert Date: 7/1/01 US - SUPREME COURT FINDS FRONT PAY NOT SUBJECT TO COMPENSATORY DAMAGES CAP: On June 4, 2001, in Pollard v. E.I. du Pont de Nemours & Co., the U.S. Supreme Court unanimously ruled that front pay awards in cases under Title VII are not an element of compensatory damages, and, therefore, not subject to damages caps. The court's decision was based on the fact that front pay is a remedy that was authorized under Section 706 of Title VII. Thus, the Supreme Court found that front pay is not included in the compensatory damages caps imposed under the Civil Rights Act of 1991. gerald.l.maatman@bakernet.com or jill.s.walschlager@bakernet.com Alert Date: 7/1/01 US - CALIFORNIA BILL REQUIRING EMPLOYER DISCLOSURE OF E-MAIL MONITORING: On June 4, 2001, a bill that would require employers to notify workers before monitoring employees' at-work e-mail passed the California State Senate . In 1999 and 2000, the California Legislature passed similar bills, but both were vetoed by Governor Gray Davis, who argued that they placed too difficult a legal burden on businesses. See " California Monitoring Bill ," " Bill Number SB147 ," and " Bill Documents ." cynthia.l.jackson@bakernet.com or abby.silverman@bakernet.com Alert Date: 7/1/01 US - FMLA DOES NOT REQUIRE INTERMITTENT LEAVE FOR EMPLOYEE WHO IS UNABLE TO PERFORM THE ESSENTIAL FUNCTIONS OF THE JOB: On June 1, 2001, in Hatchett v. Philander Smith College , the U.S. Court of Appeals for the Eighth Circuit held that the Family and Medical Leave Act does not require an employee, who is unable to perform the essential functions of the job, to be provided with intermittent leave. The Eighth Circuit's opinion is the first to address this issue under the FMLA. jill.s.walschlager@bakernet.com or steve.a.miller@bakernet.com Alert Date: 7/1/01 US - NONDISCRIMINATION PROPOSAL GETS SUPPORT AT EXXONMOBIL ANNUAL MEETING: ExxonMobil shareholders voted recently at their annual shareholders meeting to add the words "sexual orientation" to the company's non-discrimination policy. This is the third consecutive year that ExxonMobil was asked by advocates to amend the company's personnel policy; consequently, the proposal drew the highest percentage of support out of the eight resolutions that were voted on at this year's meeting. See " ExxonMobil Adds To Non-discrimination Policy ." jordan.w.cowman@bakernet.com or gerald.l.maatman@bakernet.com Alert Date: 7/1/01 US - REPORT FINDS DEMOGRAPHIC TIDAL WAVE WILL AFFECT RETIREMENT SECURITY AND ECONOMY: On June 6, 2001, the U.S. General Accounting Office released a report claiming the U.S. economy and individual retirement security is facing uncertainty. The report was designed to present information about national savings and its necessity for economic growth. The study shows that the personal savings rate in the U.S. has plummeted. Lack of savings, coupled with concerns of borrowing from abroad to finance U.S. investments and the retirement age nearing for a large group of Americans, all pose significant challenges for the future of the economy. See " Report Finds Demographic Tidal Wave." kerry.r.weinger@bakernet.com or lisa.s.brogan@bakernet.com Alert Date: 7/1/01 US - COURT FINDS SATURN CORPORATION IN VIOLATION OF THE ADA: On June 7, 2001, the U.S. Court of Appeals for the Sixth Circuit concluded that Saturn Corporation violated the Americans With Disabilities Act by placing an employee on disability status who had failed to physically perform all of the functions assigned to his team. Saturn Corporation relies on a team system in which workers performing related functions rotate duties among themselves. Jeffrey Kiphart filed suit against Saturn, alleging some Saturn workers were allowed to choose the team jobs that they performed and he was not. See " Kiphart v. Saturn ." j.richard.hammett@bakernet.com or frank.henry@bakernet.com Alert Date: 7/1/01 US - GAY HOTEL MANAGER SUES HELMSLEY HOTEL: On June 7, 2001, Charles Bell, the former manager of a Park Lane Hotel, filed suit against the hotel owner, Leona Helmsley, for US$10 million alleging that Helmsley fired him because he is gay. Bell claims that Helmsley has a history of promoting racism and homophobia and that she referred to gays and minorities in derogatory terms. See " Hotel Manager Sues Helmsley ." robert.p.lewis@bakernet.com or charlene.s.tsang@bakernet.com Alert Date: 7/1/01 US - AUTOMAKER FACES DISCRIMINATION SUIT: On June 7, 2001, the U.S. Equal Employment Opportunity Commission ("EEOC") filed suit in a federal court in Detroit, claiming that automaker DaimlerChrysler refused to hire a disabled mechanic at its Detroit Axle Plant. The EEOC claims the pattern and practice of discrimination violates the Americans With Disabilities Act. See " Automaker Faces Discrimination Suit ." gerald.l.maatman@bakernet.com or michael.j.pollard@bakernet.com Alert Date: 7/1/01 US - BOGUS FTC INVESTIGATOR RUNS SCAM OVER WORK-AT-HOME SCHEME: On June 6, 2001, a Federal Trade Commission (FTC) investigation into a phony work-at-home plan became more complicated when a man pretending to be an FTC employee e-mailed victims of the bogus scam seeking personal information. The latter trick stemmed from an investigation into Medicor, an L.A. based company accused of defrauding customers about the amount of money they could make from using an at home computer to process medical bills for physicians in their community. See " E-Mail From Bogus FTC Employee." renee.s.schor@bakernet.com or william.l.schaller@bakernet.com Alert Date: 7/1/01 US - EEOC POSTS CENSUS RACE DATA: On June 8, 2001, the U.S. Equal Employment Opportunity Commission posted race and ethnic distribution figures from the 2000 Census on its website. The published statistics are important for employees relative to affirmative action compliance. See " EEOC Race Data." frank.henry@bakernet.com or brian.s.arbetter@bakernet.com Alert Date: 7/1/01 US - IRS TO SURVEY BUSINESS COMMUNITY ABOUT COMPLIANCE BURDEN: On June 4, 2001, the U.S. Internal Revenue Service announced it will be conducting a survey to measure time and cost burdens taxpayers face when complying with federal income tax laws. See " IRS Tax Survey." david.w.ellis@bakernet.com or maura.ann.mcbreen@bakernet.com Alert Date: 7/1/01 US - MASS LAY-OFF ACTIONS FROM JANUARY THROUGH APRIL OF 2001 INCREASE FROM THE SAME PERIOD IN THE PRIOR YEAR: According to recent data from the U.S. Department of Labor, there were 1,445 mass lay-off actions by employers as measured by new filings for unemployment insurance benefits. Each action involved at least 50 persons from a single establishment, and the number of workers involved totaled 175,064. In the first quarter of 2001, the total number of events and initial claims were higher than in the first quarter of 2000. See " Lay-Offs ." gerald.l.maatman@bakernet.com or charles.r.topping@bakernet.com Alert Date: 7/1/01 US - COURT ENFORCES US$6 MILLION SETTLEMENT AGREEMENT BETWEEN MAINE EGG FARM AND HISPANIC WORKERS: On June 1, 2001, a federal judge in Maine agreed to enforce a disputed US$6 million settlement agreement between a group of Hispanic farm workers and DeCoster Egg Farm, despite protests by DeCoster that no agreement was ever reached. Judge D. Brock Hornby of the U.S. District Court for the District of Maine ruled that the settlement agreement between Luis Ramirez, on behalf of a putative class of Hispanic farm workers, and DeCoster was enforceable, rejecting arguments that no agreement existed because the two sides were unable to agree on acceptable security for the settlement or a guarantee to end a boycott. See " Settlement Agreement ." gerald.l.maatman@bakernet.com or charles.r.topping@bakernet.com Alert Date: 7/1/01 US - LUMP SUM TERMINATION PAYMENTS NOT ENTITLED TO PRIORITY IN FIRM'S BANKRUPTCY: On June 7, 2001, the U.S. Court of Appeals for the Tenth Circuit ruled that lump sum cash payments due upon termination pursuant to employment contracts were not entitled to priority status in a company's bankruptcy proceedings. Two employees had entered into employment contracts with the employer specifying that they would receive lump sum cash payments upon termination prior to the expiration of the contracts unless the termination was for cause. The employees appealed the bankruptcy court's decision, but both the U.S. District Court and the Tenth Circuit affirmed the ruling. See " Bankruptcy Ruling ." lisa.s.brogan@bakernet.com or jack.a.simms@bakernet.com Alert Date: 7/1/01 US - PROVISION OF DOMESTIC PARTNER BENEFITS ONLY TO SAME-SEX COUPLES FOUND CONSTITUTIONAL: The U.S. Court of Appeals for the Seventh Circuit recently affirmed the dismissal of a class action lawsuit challenging the constitutionality of the Chicago Board of Education's policy of extending domestic partner benefits only to same-sex couples. The class representative had lived with the same man for more than 20 years but the couple had never married. The class representative's "domestic partner" was not receiving any benefits from the city, though he would have been if he were the class representative's husband. The class representative claimed that the board's policy of excluding her domestic partner from coverage denied her equal protection and, hence, was unconstitutional. See " Seventh Circuit Opinion ." craig.r.annunziata@bakernet.com or charles.r.topping@bakernet.com Alert Date: 7/1/01 US - HACKING AGAINST EMPLOYERS RISES WITH TECHNOLOGY LAY-OFFS: On June 3, 2001, a survey of employers showed that hacking attempts have cost employers an estimated US$378 million. Because of recent massive lay-offs by computer technology firms, employers in the technology sector are increasingly becoming subject to hacking threats by disgruntled employees. Employers are having to institute new procedures to protect their information technology systems from attacks by ex-employees, forcing many human resources managers to refine their procedures. See " Hacking Threats Rises With Lay-Offs ." william.l.schaller@bakernet.com or john.m.murphy@bakernet.com Alert Date: 7/1/01 US - FEDERAL COURT ALLOWS EMPLOYEE TO PROCEED WITH FMLA SUIT DESPITE ARBITRATION PACT: Recently, the U.S. District Court for the Northern District of Illinois ruled that a Chicago factory worker may proceed with a lawsuit under the Family and Medical Leave Act (FMLA) even though the collective bargaining agreement between her employer and the union stipulated that all such claims be arbitrated. The court ruled that any such agreements must specifically waive the right of the party to sue under those statutes. See " Bonilla v. Small Assemblies Co ." gerald.l.maatman@bakernet.com or michael.j.wagner@bakernet.com Alert Date: 7/1/01 US - H-1B VISAS APPROVED THIS FISCAL YEAR HIT 117,000: On June 7, 2001, the U.S. Immigration and Naturalization Service announced that approximately 117,000 petitions for H-1B nonimmigrant workers had been approved since the beginning of the current fiscal year. The number of approved visas is more than half of the limit set by the American Competitiveness in the Twenty-First Century Act. See " Approved Visa Total Reaches 117,000 ." betsy.morgan@bakernet.com or lynda.s.zengerle@bakernet.com Alert Date: 7/1/01 US - COMPANIES ELECTRONICALLY KEEPING WATCH OVER THEIR EMPLOYEES: On June 9, 2001, the American Management Association published its annual study of electronic workplace monitoring. The study shows that three-quarters of U.S. businesses now electronically monitor employees in some fashion, doubling the rate of five years ago. The most heavily monitored areas include the Internet (63%), telephone (43%), and computer use (19%). See " Companies Keep Watch ." john.m.murphy@bakernet.com or abby.b.silverman@bakernet.com Alert Date: 7/1/01 US - PRESIDENT BUSH SIGNS $1.35 TRILLION TAX MEASURE: On June 7, 2001, President Bush signed House Resolution 1836, a bill that will provide US$1.35 trillion in tax cuts over the next several years. Part of this package includes pension provisions designed to increase retirement savings. See " Bush Signs Tax Break Bill ." kerry.r.weinger@bakernet.com or maura.ann.mcbreen@bakernet.com Alert Date: 7/1/01 US - MAINE LAW CALLS FOR DOMESTIC PARTNER COVERAGE: On June 1, 2001, Governor Angus King of Maine signed a bill into a law requiring health insurers to offer coverage to domestic partners under the same terms and conditions for spouses of health plan members. The law becomes effective in January of 2002. See " Maine Health Insurance Law ." maura.ann.mcbreen@bakernet.com or robert.marshall@bakernet.com Alert Date: 7/1/01 US - U.S. TREASURY PAID OUT US$42 MILLION IN 2000 FOR DISCRIMINATION JUDGEMENTS: On June 7, 2001, Leroy W. Warren, Jr., chairman of the NAACP Federal Sector Task Force, wrote to President Bush and members of Congress protesting that the federal government paid out US$42.7 million in judgements based on employment discrimination complaints against federal agencies. Warren wrote this letter to express support of the Notification and Federal Employee Anti-Discrimination and Retaliation Act. This bill would require federal agencies to pay for judgements against them from their own budgets. See " U.S. Treasury Pays For Discrimination Judgements." william.l.schaller@bakernet.com or frank.henry@bakernet.com Alert Date: 7/1/01 US - COURT SAYS WORKER DISTRESSED BY SEXUAL HARASSMENT OF CO-WORKERS DOES NOT HAVE A TITLE VII CASE: On June 6, 2001, the U.S. Court of Appeals for the Second Circuit threw out a jury verdict on favor of a New York City subway worker who claimed she was traumatized by reports that female co-workers were being sexually harassed. The court held that Title VII's prohibition against the hostile work environment affords no claim to a person who experiences it as a by-stander. See " Leibovitz v. New York City Transit Authority ." robert.p.lewis@bakernet.com or craig.annunziata@bakernet.com Alert Date: 7/1/01 US - DEMAND FOR IT WORKERS PLUMMETS: An Information Technology (IT) industry report recently released indicates that the demand for high-tech workers fell 44% in the last year. The study found that high-tech companies plan to hire 900,000 workers this year, compared to 1.6 million last year. See " IT Demand Slows." michael.j.wagner@bakernet.com or j.richard.hammett@bakernet.com Alert Date: 7/1/01 US - INS ROUTINELY GRANTS WORK AUTHORIZATION TO FOREIGNERS WHO ARE INELIGIBLE: On June 5, 2001, the U.S. General Accounting Office reported that in the year 2000, the U.S. Immigration and Naturalization Service (INS) granted employment authorization to approximately 80,000 immigrants who were not eligible to work in the United States. The INS responded to the report with plans to implement a review process to assist in the creation of standard review procedures for employment authorization applications. See " INS Grants Work Authorization To Ineligible Workers." lynda.s.zengerle@bakernet.com or betsy.morgan@bakernet.com Alert Date: 7/1/01 US - PUBLIC HEARINGS ON ERGONOMICS STANDARD SCHEDULED FOR SUMMER OF 2001: On June 7, 2001, U.S. Department of Labor Secretary Elaine L. Chao announced that she would be convening three national public forums during July of 2001 in an attempt to find consensus on the topic of the Department's future ergonomics approach. The forums are scheduled for Washington, D.C. on July 16, Illinois on July 20, and California on July 24, 2001. Oral testimony and written comments will be accepted at these meetings, which may be attended by Secretary Chao and other senior agency officials. A final agency position on ergonomics is expected in September of 2001. See " Hearings ." brian.s.arbetter@bakernet.com or peter.j.gillespie@bakernet.com Alert Date: 7/1/01 US - PLANT CLOSURE DURING TEMPORARY SHUTDOWN VIOLATED WARN ACT: On June 4, 2001, the U.S. Court of Appeals for the Fourth Circuit ruled that a company's failure to give workers 60 days notice that it was converting a Maryland printing plant's temporary shutdown to a permanent closure violated the Worker Adjustment and Retraining Notification (WARN) Act. Quebecor Printing Corp. properly notified workers of the lay-off, but did not fulfill the WARN Act requirement that it notify employees that the plant would be closing permanently. The case was reversed and remanded to determine damages owed to the workers. See " Graphic Communications Int 'l Union, Local 31-N v. Quebecor Printing Corp." brian.s.arbetter@bakernet.com or steve.a.miller@bakernet.com Alert Date: 7/1/01 US - UNIONS OPPOSE EMPLOYEES' RIGHT TO KNOW: On June 5, 2001, the National Right to Work Foundation reported that three unions and a federally funded union-established corporation filed suit against the Bush Administration over Executive Order 13201. The Executive Order requires federal contractors to post a standard workplace notice informing employees that they cannot be compelled to formally join a union or pay dues in support of politics or any other collective bargaining. The claimants argue the order places "substantial administrative burdens" on businesses. See " Executive Order 13201." brian.sarbetter@bakernet.com or j.michael.goulding@bakernet.com Alert Date: 7/1/01 US - ETA REPORTS INCREASE IN UNEMPLOYMENT INSURANCE CLAIMS: On June 7, 2001, the U.S. Department of Labor's Employment and Training Administration released the number of new claims filed with state agencies for unemployment insurance benefits for the previous week. This figure, up 13,000 claims from the previous week, reflects the rise in claims over the previous four weeks. See " Unemployment Insurance Claims On The Rise ." gina.l.knight@bakernet.com or michael.a.pollard@bakernet.com Alert Date: 7/1/01 US - NATIONAL LABOR RELATIONS BOARD APPOINTS THREE JUDGES: On June 4, 2001, the National Labor Relations Board announced the appointment of three Administrative Law Judges to replace retiring judges from the Division of Judges. The Division of Judges is responsible for conducting trials and issuing initial decisions in unfair labor practice cases on charges filed by unions, employers, and individual workers. See " NLRB Appoints Judges." jordan.w.cowman@bakernet.com or andrew.b.cripe@bakernet.com Alert Date: 7/1/01 US - LAWSUIT FILED TO CONTEST ALLEGED DISCRIMINATION: On June 12, 2001, the owner of four halfway houses in Illinois filed a federal lawsuit alleging that a city in Madison County withheld occupancy permits and discriminated against the company. The suit claims the city violated the federal Fair Housing Act, the Americans With Disabilities Act, the 14th Amendment, and the Civil Rights Act by refusing to give permits to halfway houses because the inhabitants are recovering drug and alcohol abusers. See " Alleged Discrimination ." william.j.dorsey@bakerent.com or gina.l.knight@bakernet.com Alert Date: 7/1/01 US - FLORIDA JURY AWARDS US$100,000 TO ORTHODOX JEW FOR TERMINATION OF HIS EMPLOYMENT FROM BELLSOUTH: On June 11, 2001, a federal jury awarded US$100,000 to a former BellSouth employee who was fired after he became a practicing Orthodox Jew. BellSouth claimed that Jeffrey Bander was fired after seven years with the company because he did not follow procedures for taking time off. Jurors found BellSouth guilty of illegally firing Bander after he filed an EEOC discrimination claim. See " Jury Awards Orthodox Jewish Man ." j.richard.hammett@bakernet.com or steve.kardell@bakernet.com Alert Date: 7/1/01 US - FEDERAL RESERVE SAYS IMMIGRANTS WAVE MAY SLOW PRODUCTIVITY: On June 12, 2001, a Federal Reserve Report stated that over the next century, U.S. immigrants will enlarge the labor pool at a time when a growing proportion of the nation will be retiring. The arrival of these immigrants will contribute greatly to the U.S. working population. However, the gap between the average educational attainment of the foreign-and native-born populations is large. Economists and policy makers are concerned with how a small workforce will be able to provide for a relatively large number of dependants without a decline in the U.S. standard of living. See " Fed Says Immigrants May Slow Productivity ." lynda.s.zengerle@bakernet.com or matthew.schulz@bakernet.com Alert Date: 7/1/01 US - FAILURE TO PROVIDE CONTRACEPTIVE COVERAGE IS SEX BIAS: On June 12, 2001, the U.S. District Court for the District of Washington ruled that Bartell Drug Co. violated Title VII of the Civil Rights Act of 1964 by excluding prescription contraceptive coverage from its employee health benefit plan for female employees, while covering almost all drugs and devices used by men. The court held that this constitutes discrimination based on sex. See " Erickson v. Bartell Drug Co. " abby.b.silverman@bakernet.com or cynthia.l.jackson@bakernet.com Alert Date: 7/1/01 US - SENATORS CLINTON AND HARKIN CALL FOR ACTION ON BILL TO STRENGTHEN EQUAL PAY ACT: June 12, 2001 is the 38th anniversary of Equal Pay Act, which prohibits employers from paying a woman less than a man for the same job. On this anniversary date, Senators Hillary Clinton (Dem. - NY) and Tom Harkin (Dem. - Iowa) called for action on a bill that would allow plaintiffs to recover for compensatory and punitive damages if the employer violates the statute. See " Fair Pay Act ." cynthia.l.jackson@bakernet.com or jennifer.l.long@bakernet.com Alert Date: 7/1/01 US - DOT SEEKS INPUT ON NEW DRUG TESTING MANDATE: On June 14, 2001, the U.S. Department of Transportation announced that it is seeking comment on a new drug testing requirement involving applicants for safety-sensitive functions in the transportation industry. The new rule will require employers to ask such applicants about their drug and alcohol history. The new rule takes effect on August 1, 2001. See " DOT Seeks Input On Drug Testing ." peter.j.gillespie@bakernet.com or mark.d.taylor@bakernet.com Alert Date: 7/1/01 US - COMMENTS MADE IN APOLOGY LETTER PROTECTED BY JUDICIAL PROCEEDINGS ABSOLUTE PRIVILGE: On June 1, 2001, a Maryland Court of Special Appeals ruled that comments in a written apology issued as part of the settlement in a sexual harassment claim are subject to absolute privilege. The court ruled that documents created as part of a settlement, including a letter of apology, are protected under an absolute privilege provided to judges, witnesses, parties, and attorneys for statements made during judicial proceedings. See " Sodergren v. Johns Hopkins University Applied Physics Lab." mark.l.karasik@bakernet.com or abby.b.silverman@bakernet.com Alert Date: 7/1/01 US - INDEPENDENT STEEL UNION MEMBERS RATIFY THREE SEPARATE CONTRACTS WITH WEIRTON STEEL: On June 13, 2001, the Independent Steelworkers Union ratified three separate, 15-month contracts covering 3,500 workers. The contracts retain many of the existing provisions from previous contracts, with the addition of a 15 percent increase in benefits after pensions are calculated on the basis of earnings and years of service. See " Steel Union Ratifies Contract ." brian.s.arbetter@bakernet.com or peter.j.gillespie@bakernet.com Alert Date: 7/1/01 US - NEW TRIAL ORDERED ON CLAIM OF RETALIATORY FIRING: The U.S. Court of Appeals for the Second Circuit recently decided that a jury's irreconcilable verdicts in Harris v. Niagara Mohawk Corp. requires a new trial. A black manager sued under Title VII of the Civil Rights Act of 1964 and under state law claiming that he was rejected for a "team leader " position and then terminated for retaliation for complaints of discrimination. robert.p.lewis@bakernet.com or howard.f.fine@bakernet.com Alert Date: 7/1/01 US - IRS ISSUES FINAL RULES PERMITTING TRANSFERS FROM PENSION PLAN TO RETIREE HEALTH ACCOUNT: On June 15, 2001, the U.S. Internal Revenue Service issued final rules on minimum cost requirements permitting the transfer of excess assets from a defined benefit pension plan to a retiree health account. See " IRS Retiree Health Account ." bonnie.k.levitt@bakernet.com or edward.d.burmeister@bakernet.com Alert Date: 7/1/01 US - WAL-MART ORDERED TO PAY US$750,000 FOR VIOLATING TERMS OF CONSENT DECREE: On June 13, 2001, the U.S. District Court for the District of Arizona found Wal-Mart Stores Inc. in contempt of court for violating the terms of a disability-bias settlement ordered by court. Wal-Mart Stores Inc. was fined US$750,000 for noncompliance. Under the terms of a January 6, 2000 consent decree, Wal-Mart agreed to train management employees in Tucson and Green Valley, Arizona about the Americans With Disabilities Act and to create a national training program for hearing-impaired employees. See " Equal Employment Opportunity Commission v. Darnell." andrew.j.boling@bakernet.com or gerald.l.maatman@bakernet.com Alert Date: 7/1/01 US - COMAIR PILOTS REACH TENTATIVE AGREEMENT TO END 12-WEEK STRIKE OF REGIONAL CARRIER: On June 18, 2001, representatives for Comair pilots began briefings on tentative agreements that, if ratified, will end a 12-week strike against the regional airline. Union and management are looking to restart operations and heal rifts among Comair employees. See " Comair And Pilots Reach Agreement." laurence.e.stuart@bakernet.com or brian.s.arbetter@bakernet.com Alert Date: 7/1/01 US - D.C. CIRCUIT OVERTURNS NLRB DECISION ON SHAM SALES AND BARGAINING ORDER: On June 12, 2001, the U.S. Court of Appeals for the District of Columbia ruled that the National Labor Relations Board (NLRB) did not conduct an appropriate analysis to support its decision for implementing an affirmative bargaining order. The NLRB claims the order was necessary because a mobile food catering business made "sham" sales of catering trucks and routes to avoid unionization. The court held that the board failed to analyze whether the "extreme remedy" of an affirmative bargaining order was appropriate and necessary. See " Douglas Foods Corp. v. NLRB ." mark.l.karasik@bakernet.com or michael.j.wagner@bakernet.com Alert Date: 7/1/01 US - ELEVENTH CIRCUIT INVALIDATES MANDATORY ARBITRATION AGREEMENT CONTAINING FEE AND COST-SHARING PROVISION: In a decision issued on June 12, 2001, the U.S. Court of Appeals for the Eleventh Circuit affirmed a district court's order denying an employer's motion to compel arbitration, where the mandatory arbitration agreement provided that all costs imposed by the American Arbitration Association, and all fees imposed by any arbitrator hearing the dispute, would be shared equally by the employee and the company. The court ruled that this provision defeated the remedial purpose of Title VII of the Civil Rights Act of 1964 and rendered the entire arbitration agreement unenforceable. See " Perez v. Globe Airport Security Services, Inc." richard.tuschman@bakernet.com or neil.mcguinness@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT RULES THAT ADA DOES NOT PROTECT EMPLOYEE WITH ERRATIC, UNEXPLAINED ABSENCES: In a decision issued on June 12, 2001, the U.S. Court of Appeals for the Seventh Circuit affirmed a district court's order dismissing the Americans With Disabilities Act (ADA) claim of a factory worker with AIDS-related cancer who was terminated for excessive absenteeism. The Seventh Circuit held that attendance at the job site was a basic requirement of the plaintiff's job and, therefore, the ADA offered no protection for his erratic, unexplained absences, even though those absences were the result of a disability. See " Nicosia v. Yellow Freight System, Inc. " gerald.l.maatman@bakernet.com or craig.r.annunziata@bakernet.com Alert Date: 7/1/01 US - EIGHTH CIRCUIT RULES THAT UNION IS LIABLE FOR RACIAL HARASSMENT OF "SCABS": In a decision issued on June 15, 2001, the U.S. Court of Appeals for the Eighth Circuit affirmed a jury verdict against the United Steelworkers of America in favor of two black workers who were subjected to racial slurs when they crossed the union's picket line during a 1997 strike at the Goodyear plant in Lincoln, Nebraska. The court held that although the racial conduct occurred on public property, it created an abusive working environment because it was perpetrated with the intent to intimidate and affect the working environment inside the plant. See " Dowd v. United Steelworkers of America ." jordan.cowman@bakernet.com or carole.a.spink@bakernet.com Alert Date: 7/1/01 US - ELEVENTH CIRCUIT AFFIRMS VERDICT FOR EMPLOYEES WHO WERE DISCIPLINED BASED ON BIASED EEO INVESTIGATION: In a decision issued on June 6, 2001, the U.S. Eleventh Circuit Court of Appeals for the Eleventh Circuit held that there was "ample evidence" to uphold a jury verdict on behalf of several white employees who were disciplined based on an internal investigation into allegations of racial harassment in the workplace. The jury found that the investigator's report was biased and unsupported by the facts and that similarly situated black employees were treated more leniently. See " Lambert v. Fulton County, Georgia ." richard.tuschman@bakernet.com or neil.mcguinness@bakernet.com Alert Date: 7/1/01 US - AIRLINE EMPLOYEE'S CARPAL TUNNEL SYNDROME IS NOT PROTECTED DISABILITY: On June 12, 2001, the U.S. Court of Appeals for the First Circuit ruled an American Airlines gate attendant with carpal tunnel syndrome was not a disabled individual under the Americans With Disabilities Act. The court found that since the employee's condition did not substantially limit her in the major life activity of working, she failed to meet the definition of disabled according to the statute. See " Gelabert-Ladenheim v. American Airlines, Inc. " j.richard.hammett@bakernet.com or kevin.s.simon@bakernet.com Alert Date: 7/1/01 US - PARTIES REACH TENTATIVE SETTLEMENT IN SEARS RETIREE ERISA CLASS ACTION: On June 12, 2001, Sears Roebuck & Co. and a group of its retired employees reached a tentative settlement in a suit filed by retirees who claim that the retailer violated the Employee Retirement Income Security Act. In 1997, Sears reorganized its benefits program, and announced it would roll back retiree life insurance benefits to a uniform level of US$5,000 over 10 years, regardless of the employee's length of service. Retirees affected by the modification to the retiree life insurance plan filed a class action arguing that the changes violated the ERISA. See " In Re Sears Retiree Group Life Insurance Litigation ." lisa.s.brogan@bakernet.com or michael.a.pollard@bakernet.com Alert Date: 7/1/01 US - MAINE GOVERNOR VETOES CURB ON FUNDS FOR HEALTHCARE EMPLOYERS THAT FIGHT UNIONS: On June 15, 2001, Maine Governor Angus King vetoed a bill that would have placed restrictions on hospitals and other healthcare institutions from using government funds to fight union organizing. The bill would have expanded current state law to prohibit reimbursement from Medicare, Medicaid, or any state-administered fund for activities used to influence employees to reject unionization. See " Maine Governor Vetoes Bill That Rejects Unions ." brian.s.arbetter@bakernet.com or laurence.e.stuart@bakernet.com Alert Date: 7/1/01 US - OHIO COMPANY LACKS STANDING TO CHALLENGE SAN FRANCISCO ORDINANCE: On June 14, 2001, the U.S. Court of Appeals for the Ninth Circuit held that S.D. Myers, Inc. does not have standing under the Employee Retirement Income Security Act to challenge a San Francisco ordinance providing benefits for same sex partners of employees. The court ruled the company did not suffer a "discrete injury" and therefore could not challenge the ordinance that requires city contractors to provide non-discriminatory benefits to employees with registered domestic partners. See " S.D. Myers, Inc. v. San Francisco ." cynthia.l.jackson@bakernet.com or michael.a.pollard@bakernet.com Alert Date: 7/1/01 US - CONNECTICUT BANS MENTAL DISABILITY DISCRIMINATION: The Governor of Connecticut recently signed Senate Bill 1053 into law, which bans mental disability discrimination. Connecticut employers may not refuse to hire, discharge from employment, or otherwise discriminate against an individual based on their past history of mental disability, except in bona fide occupational qualifications or needs. See " S.B. 1053 ." robert.s.lewis@bakernet.com or william.l.schaller@bakernet.com Alert Date: 7/1/01 US - IRS RELEASES NEW WITHHOLDING TABLES FOR JULY 1, 2001: On June 13, 2001, the U.S. Internal Revenue Service released revised federal income tax withholding tables, effective for wages paid on or after July 1, 2001. The tables were revised to reflect recently enacted income tax decreases. See " IRS Publication 15-T." davidw.ellis@bakernet.com or edward.d.burnmeister@bakernet.com Alert Date: 7/1/01 US - EEOC WINS JUDGEMENT AGAINST TECH COMPANY IN AGE BIAS SUIT: On June 12, 2001, the U.S. District Court of Massachusetts granted the U.S. Equal Employment Opportunity Commission's Motion for Summary Judgement against Bull HN Information Systems, Inc. The EEOC argued Bull HN discriminated against older workers in connection with a series of reductions in force, by requiring them to sign unlawful waivers of claims that violate the Age Discrimination in Employment Act. See " EEOC Wins Judgement." cynthia.l.jackson@bakernet.com or gerald.l.maatman@bakernet.com Alert Date: 7/1/01 US - SUSPECTS IN LUCENT CASE PLEADS NOT GUILTY: On June 19, 2001, three Chinese nationals pleaded not-guilty to charges for the alleged selling of trade secrets from Lucent Technologies, Inc. The suspects are charged under a one-count indictment with conspiring to steal trade secrets and to possess stolen trade secrets; however, the U.S. Department of Justice has listed the case as a prosecution under the Economic Espionage Act. See " Suspects Indicted ." william.l.schaller@bakernet.com or john.m.murphy@bakernet.com Alert Date: 7/1/01 US - BUSH ADMINISTRATION NOMINATES NEW OSHA DIRECTOR: On June 13, 2001, President Bush announced the nomination of John L. Henshaw as the Assistant Secretary of Labor for Occupational Safety and Health. Henshaw previously was the environment, safety and health director for Astaris LLC, a St. Louis chemical company. Henshaw also served as the president of the American Industrial Hygiene Association from 1990-91. See " OSHA Nomination ." brian.s.arbetter@bakernet.com or peter.j.gillespie@bakernet.com Alert Date: 7/1/01 US - WAL-MART HIT WITH CLASS ACTION LAWSUIT BY FEMALE EMPLOYEES ALLEGING SEX DISCRIMINATION: On June 19, 2001, six current and former female employees filed a class action lawsuit in California federal court against Wal-Mart Stores Inc., alleging systematic discrimination against women with respect to pay and promotion practices in alleged violation of Title VII of the Civil Rights Act of 1964. The attorney representing the named plaintiffs has stated that as many as 700,000 current and former employees could eventually be a part of the case. " Wal-Mart Litigation ." gerald.l.maatman@bakernet.com or jill.s.walschlager@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT AFFIRMS DISMISSAL OF AGE DISCRIMINATION LAWSUIT DESPITE TESTIMONY ABOUT CULTURE OF AGE DISCRIMINATION: In a decision issued on June 15, 2001, the U.S. Court of Appeals for the Seventh Circuit affirmed a district court's dismissal of an age discrimination lawsuit, despite deposition testimony by a supervisory employee (who had his own age discrimination lawsuit against the employer) that the employer had a culture promoting age discrimination and that the plaintiff and other older workers were not given the same opportunities as younger workers for choice assignments. The court held that this "kind of vague, speculative evidence by an employee with his own axe to grind has too little probative value to make out a prima facie case of discrimination." See " Kadas v. MCI Systemhouse Corp ." mark.l.karasik@bakernet.com or craig.r.annunziata@bakernet.com Alert Date: 7/1/01 US - EMPLOYMENT CONTRACT GAVE EMPLOYEE RIGHT TO SELECT FORUM: On June 8, 2001, the U.S. Court of Appeals for the Fifth Circuit ruled that a forum selection clause in an employment contract gave an employee the right to select the forum to hear his dispute challenging his former employer's calculation of his retirement benefits. The contract at issue provided that the company consented to and waived any objection to any lawsuit brought under the contract by the employee in either federal court or in any Texas state court. See " Waters v. Browning Ferris Industries, Inc." charlene.tsang@bakernet.com or jordan.cowman@bakernet.com Alert Date: 7/1/01 US - NUMBER OF NEW UNEMPLOYMENT INSURANCE CLAIMS DECREASES: On June 9, 2001, the U.S. Department of Labor's Employment and Training Administration released figures revealing that the number of claims filed with state agencies for unemployment insurance benefits dropped 12,000 over the last week. The rate is up slightly from last year. See " UI Claims." lisa.s.brogan@bakernet.com or robert.marshall@bakernet.com Alert Date: 7/1/01 US - DRESS FOR SUCCESS IS STILL IMPORTANT FOR EMPLOYEES: On June 15, 2001, according to a survey of Americans age 18 and older, a woman's appearance affects whether she is taken seriously on the job. Most of the respondents said that creating a professional appearance helps a woman get and keep a job, gain responsibilities, and secure raises and promotions. Respondents with a higher education level placed greater emphasis on the importance of appearance at work. See " Dress for Success ." renee.schor@bakernet.com or abby.b.silverman@bakernet.com Alert Date: 7/1/01 US - AS BOOMER EMPLOYEES' PARENTS AGE, ELDER CARE IS GROWING BUSINESS CONCERN: According to a recent survey sponsored by Metlife Insurance Company, elder care conflicts with employee work turn into productivity losses for employers. These losses are estimated to range from US$11 billion to US$29 billion, with costs expected to rise as the country's demographics continue to change. Leaders on elder care policy and benefits are looking more closely at the issue, which is becoming a growing concern in the American workplace. See " Elder Care Becomes Growing Business Concern." carole.spink@bakernet.com or howard.f.fine@bakernet.com Alert Date: 7/1/01 US - U.S. MOTHER'S TO PASS DOWN CITIZENSHIP TO THEIR CHILDREN: On June 11, 2001, the U.S. Supreme Court ruled that U.S. citizen fathers do not have the same right as a mother to transfer their U.S. citizenship to children born out of wedlock outside the United States. The Supreme Court upheld a law that allows children born abroad to continue to claim derivative U.S. citizenship from their mothers. See " Tuan Anh Nguyen v. INS ." lynda.s.zengerle@bakernet.com or irene.m.recio@bakernet.com Alert Date: 7/1/01 US - FOREIGN WORKERS TO AID IN NURSING SHORTAGE: The nursing shortage continues in the United States, with job recruiters now turning to Europe and Southeast Asia in search of qualified practitioners to fill vacancies. The U.S. Immigration and Naturalization Service is also responding by finally enacting regulations to implement the Nursing Relief for Disadvantaged Areas Act of 1999, which created the H-1C visa category for nurses. The three basic requirements for the foreign worker to qualify for H-1C classification include a license to practice abroad, examination in the United States, and eligibility under state law to practice in the given locality. lynda.s.zengerle@bakernet.com or allen.orr@bakernet.com Alert Date: 7/1/01 US - LABOR DEPARTMENT TO SHARE DATA WITH MONSTER.COM: On June 20, 2001, the U.S. Department of Labor announced plans to pair up with online job search engine monster.com to promote jobs in the public and private sector, while sharing aggregate data on employment trends. See " Labor Department To Share Data With Monster.Com." michael.j.wagner@bakernet.com or andrew.j.boling@bakernet.com Alert Date: 7/1/01 US - EEOC SUES CONSULTING FIRM FOR WIDESPREAD SEXUAL HARASSMENT: On June 12, 2001, the Equal Employment Opportunity Commission filed a class action complaint against a suburban Chicago management consulting firm, alleging sexual harassment in the workplace. jill.walchlager@bakernet.com or carole.s.spink@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT RULES REGULAR ATTENDANCE ESSENTIAL FUNCTION IN JOB SETTINGS: On June 12, 2001, the U.S. Court of Appeals for the Seventh Circuit ruled that an Illinois trucking services company did not violate the Americans With Disabilities Act when it terminated an employee with AIDS for poor job attendance. The court explained that regular attendance is usually an essential function in most every employment setting. See " EEOC v. Yellow Freight Systems ." mark.l.karasik@bakernet.com or craig.r.annunziata@bakernet.com Alert Date: 7/1/01 US - SHIP PILOT CANDIDATE LOSES BIAS CLAIM: On June 8, 2001, a federal judge ruled that an African-American ship pilot, who for eight years unsuccessfully applied for work with an organization providing maritime services at a Galveston, Texas port, did not establish a case of race discrimination. The court said that because the pilot failed to complete an application for certification to the position, he was "unqualified in the starkest terms." See " Peguese v. J.R. Borup ." (BNA subscription required.) j.richard.hammett@bakernet.com or charlene.tsang@bakernet.com Alert Date: 7/1/01 US - CALIFORNIA JUDGE CERTIFIES CLASS ACTION ALLEGING FIRM RENEGED ON LIFE TIME REBATES: On June 7, 2001, a California judge certified a class action alleging Hewlett-Packard Co. reneged on a promise to provide retirees with lifetime rebates on purchases of company products. The complaint was filed by a 23-year retiree of the company who alleged that the company reclassified him as a retiree of Agilent, an HP spin-off that did not exist when he retired and withdrew the rebates later that year. See " Leonard v. Helwett-Packard, Co. " (BNA subscription required) renee.s.schor@bakernet.com or cynthia.a.freeland@bakernet.com Alert Date: 7/1/01 US - AGE BIAS PLAINTIFF AWARDED FRONT PAY: The U.S. District Court for the Northern District of New York recently ruled that a former General Electric employee who prevailed on an age discrimination claim is now entitled to front pay. The pay represents the difference between the pensions he will receive from GE and his current employer and the amount he would have received from GE but for his termination. See " Hogan v. General Electric Co. " (BNA subscription required) robert.p.lewis@bakernet.com or j.richard.hammet.@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT RULES EMPLOYER MUST MAKE PENSION PAYMENTS PENDING SETTLEMENT: On June 15, 2001, the U.S. Court of Appeals for the Seventh Circuit held that with a multi-employer pension plan, an employer is liable for interim withdrawal liability payments when the plan's liability assessment predates the employer's actual withdrawal from the plan. The court rejected the employer's argument that the Multiemployer Pension Plan Amendments Act requires that there be an "actual and uncontested withdrawal from a plan before an employer can issue an notice of withdrawal liability- including interim liability." See " Central States, S.E. and S.W. Areas Pension Fund v. Bomar Nat'l, Inc. " ben.a.neiburger@bakernet.com or andrea.kovar@bakernet.com Alert Date: 7/1/01 US - D.C. CIRCUIT WILL NOT REVIEW LEGALITY OF REJECTED FCC RULE: On June 19, 2001, the U.S. Court of Appeals for the District of Columbia refused to reconsider the legality of the U.S. Federal Communications Commission's equal employment opportunity rule for broadcast television and radio stations. The regulation, struck down last January 2001, was declared unconstitutional because it creates a race-based classification that is not narrowly tailored to support governmental interests." See " MD/DC/DE Broadcasters Ass 'n v. F.C.C." irene.m.recio@bakernet.com or andrew.b.cripe@bakernet.com Alert Date: 7/1/01 US - U.S. GOVERNMENT MAKING TECHNOLOGY ACCESSIBLE FOR THE DISABLED: On June 19, 2001, during a visit to a U.S. Defense Department facility, President Bush stated that the federal government needs to take a leadership role in providing people with disabilities better access to technology. Bush noted that Section 508 of the Rehabilitation Act of 1998, which requires federal agencies to make sure that all electronic and information technology used is accessible to those with disabilities, takes effect on June 25, 2001. See " Rehabilitation Act Section 508 ." michael.j.wagner@bakernet.com or steve.a.miller@bakernet.com Alert Date: 7/1/01 US - U.S. HOUSE INTRODUCES LEGISLATION TO OVERTURN SUPREME COURT'S CIRCUIT CITY DECISION: On June 20, 2001, five Democrats from the U.S. House of Representatives introduced legislation intended to overturn the recent U.S. Supreme Court decision in Circuit Cities v. Adams allowing mandatory arbitration of employment disputes. The proposed bill would amend the Federal Arbitration Act of 1925 to make employment arbitration agreements unenforceable unless the employee and employer both voluntarily consent to arbitrate a claim after it has arisen. See " Preservation Of Civil Rights Protection Act. " gerald.l.maatman@bakernet.com or brian.s.arbetter@bakernet.com Alert Date: 7/1/01 US - MINNESOTA BANS GENETIC INFORMATION DISCRIMINATION: Recently, the State of Minnesota enacted a ban which prohibits employers from administering a genetic test or requesting, requiring, or collecting genetic information regarding a person as a condition of employment. See " Protected Genetic Information ." carole.a.spink@bakernet.com or kevin.s.simon@bakernet.com Alert Date: 7/1/01 US - LEGISLATORS SUPPORT AFL-CIO'S "SEVEN DAYS IN JUNE" AGENDA FOR WORKERS' RIGHT TO ORGANIZE: On June 13, 2001, 10 members of the U.S. House of Representatives took the House floor in support of a worker's right to organize. This is the third year that the AFL-CIO has targeted a full week in June to publicly highlight employers' efforts to block employee's from joining unions. See " House Members Support Unions." j.richard.hammet@bakernet.com or brian.s.arbetter@bakernet.com Alert Date: 7/1/01 US - D.C. CIRCUIT RULES THAT "INDEPENDENT CONTRACTOR" MAY BE AN EMPLOYEE UNDER ECONOMIC REALITY TEST: In a decision issued on June 22, 2001, the U.S. Court of Appeals for the D.C. Circuit held that a worker designated by her employer as an "independent contractor" was entitled to go to trial on her claim that she was really an employee of the defendant and was therefore to entitled to minimum wage and overtime payments. Applying the "economic reality" test, the court held that the plaintiff's self-description did not necessarily preclude a finding that she was an employee, nor did the fact that she worked at home and sometimes worked irregular hours. See " Morrison v. International Programs Consortium, Inc. " richard.tuschman@bakernet.com or frank.henry@bakernet.com Alert Date: 7/1/01 US - D.C. CIRCUIT DIRECTS NLRB TO RECONSIDER EFFECTS OF FIRM'S CONDUCT ON GOOD FAITH DOUBT: On June 19, 2001, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the U.S. National Labor Relations Board (NLRB) misapplied the good-faith doubt standard when considering whether a company's conduct tainted election results. See " Willamette Industries, Inc. v. NLRB ." jill.s.walschlager@bakernet.com or steve.a.miller@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT SAYS LACK OF INIATIVE AND NOT DISCRIMINATION IS CAUSE FOR FIRING: On June 14, 2001, the U.S. Court of Appeals for the Seventh Circuit ruled that a hospital had good reason to fire a Chicago pediatrician for her lack of enterprise. The court dismissed the doctor's sex discrimination claim against her former employer despite the fact that the dismissal occured during the employeee's pregnancy. See " Clay v. Holy Cross Hospital." lisa.s.brogan@bakernet.com or gina.l.knight@bakernet.com Alert Date: 7/1/01 US - STRIKING CONTROLLERS CANNOT PURSUE JOINT LAWSUIT: A federal district judge recently ruled that the 3,600 air traffic controllers fired by President Reagan for an illegal strike 20 years ago cannot pursue a lawsuit. The group alleges the federal government was slow in rehiring them in alleged retaliation for their previous strike. See " Controllers Cannot Pursue Joint Lawsuit ." brian.s.arbetter@bakernet.com or howard.f.fine@bakernet.com Alert Date: 7/1/01 US - SEVENTH CIRCUIT HOLDS JUDGES SHOULD BE PERMITTED TO ACCEPT WIDE ARRAY OF STATISTICAL EVIDENCE: On June 19, 2001, the U.S. Court of Appeals for the Seventh Circuit ruled that a wider amount of statistical evidence should be permitted under the Daubert rule, even if it would be rejected as statistically insignificant by scholars. Judge Richard A. Posner said judges should have more flexibility in accepting evidence because, given evidence "free from any doubts based on significance levels," there could be times in which a case of intentional discrimination based solely on statistical evidence was possible. See " Kadas v. MCI Systemhouse Corp. " mark.l.karasik@bakernet.com or andrew.b.cripe@bakernet.com Alert Date: 7/1/01 US - IMMIGRATION REFORM AND CONTROL ACT DOES NOT PREEMPT STATE CLAIM FOR WRONGFUL DISCHARGE: Recently, a California appellate court ruled that the Immigration Reform and Control Act (IRCA) does not preempt state common law claims for wrongful discharge in violation of public policy. The court ruled that IRCA did not apply to a suit brought by two workers because the workers were not suing their former employer for either of the two practices the IRCA prohibits -- employment of illegal immigrants or discrimination against legal workers on the basis of national origin or citizenship status. See " Luo Yu Jie v. Liang Tai Knitwear Co. " cynthia.l.jackson@bakernet.com or abby.b.silverman@bakernet.com Alert Date: 7/1/01 US - FORD FACES MORE LAWSUITS ALLEGING THE COMPANY FAVORED WOMEN AND MINORITIES FOR PROMOTION: On June 21, 2001, two white managers for Ford Motor Co. filed lawsuits in the U.S. District Court in Detroit, accusing Ford of demanding that managers either meet quotas for hiring and promoting women and minorities or risk losing lucrative bonuses. The managers' lawsuits allege they were passed over for promotions in favor of women and minorities. See " Ford Faces More Lawsuits Alleging The Automaker Favored Women, Minorities For Promotion." gerald.l.maatman@bakernet.com or kevin.s.simon@bakernet.com Alert Date: 7/1/01 US - WAL-MART HIT WITH MAJOR SANCTIONS FOR VIOLATING COURT ORDER IN DISABILITY BIAS CASE: On June 14, 2001, the U.S. District Court for the District of Arizona held Wal-Mart Stores, Inc. in contempt of court and ordered it to pay US$750,200 in fines, air an explanatory television advertisement, and provide significant remedial relief. The Court order charges Wal-Mart with failing to comply with a Consent Decree settling an EEOC lawsuit on behalf of two hearing-impaired employees under Title I of the Americans With Disabilities Act. See " Judge Slaps Wal-Mart With Major Sanctions For Violating Court Order In EEOC Disability Bias Case." craig.r.annunziata@bakernet.com or jill.s.walschlager@bakernet.com Alert Date: 7/1/01 US - EEOC FILES 16TH ADA SUIT AGAINST WAL-MART: On June 21, 2001, the U.S. Equal Employment Opportunity Commission announced that it filed suit against Wal-Mart Stores, Inc., under Title I of the ADA, accusing Wal-Mart of failing to reasonably accommodate an employee with a disability. The suit was filed in the U.S. District Court for the District of Arizona, and is the EEOC's 16th legal action nationwide against Wal-Mart for violating the ADA. See " EEOC Files 16th ADA Suit Against Retail Giant ." renee.s.schor@bakernet.com or susan.f.eandi@bakernet.com Alert Date: 7/1/01 US - FOURTH CIRCUIT RULES 11TH AMENDMENT BARS FMLA SUITS AGAINST INTERSTATE COMPACT: On June 20, 2001, the U.S. Court of Appeals for the Fourth Circuit ruled that the Washington Metropolitan Area Transit Authority cannot be sued under the Family and Medical Leave Act because the 11th Amendment of the U.S. Constitution gives it immunity from suit. The Court also disallowed a former employee's suit against supervisors in their individual capacities. The Court held that the actions of the seven supervisors "were tied inextricably to their official duties," and, therefore, they were entitled to the same 11th Amendment immunity as WMATA. See " Lizza v. Alexander ." jill.s.walschlager@bakernet.com or william.j.dorsey@bakernet.com Alert Date: 7/1/01 US - JESSE JACKSON DELAYS TOYOTA BOYCOTT: On June 20, 2001, the Reverand Jesse Jackson delayed a threatened boycott of Toyota after the automaker explained it is negotiating with a black advertising firm and retained a new consultant to make the company's workforce more diverse. Jackson accused Toyota last month of using a racist advertisement for its RAV4 sport utility vehicle. See " Jackson Delays Toyota Strike ." craig.r.annunziate@bakernet.com or gina.l.knight@bakernet.com Alert Date: 7/1/01 US - EEOC SUES CONSTRUCTION FIRM FOR WIDESPREAD RACE DISCRIMINATION: On June 11, 2001, the U.S. Equal Employment Opportunity Commission (EEOC) filed a race discrimination suit in the U.S. District Court of New Orleans against The Industrial Company (TIC) and TIC Holdings, Inc. The EEOC alleges discrimination in recruiting and hiring on behalf of a class of up to 600 African American construction workers nationwide. See " EEOC Sues Major Construction Firm For Widespread Race Discrimination." laurence.e.stuart@bakernet.com or charlene.tsang@bakernet.com Alert Date: 7/1/01 US - ELEVENTH CIRCUIT RULES THAT INTERLOCUTORY APPEAL IS AN ADEQUATE REMEDY FOR DENIAL OF A SUMMARY JUDGMENT MOTION: In a decision issued on June 25, 2001, the U.S. Court of Appeals for the Eleventh Circuit refused to consider the post-trial appeal of an employee who argued that the district court improperly denied her motion for summary judgment on her claim that she was retaliated against for her filing of a charge with the Equal Employment Opportunity Commission. The Eleventh Circuit held that the denial of summary judgment is not reviewable on appeal after a full trial and final judgment on the merits. The court noted that a party who believes summary judgment has been improperly denied may file a motion to certify the issue for interlocutory appeal. See " Lind v. United Parcel Service, Inc." richard.tuschman@bakernet.com or neil.mcguinness@bakernet.com Alert Date: 7/1/01 US - SUPREME COURT AGREES TO HEAR FMLA CASE CHALLENGING ADVANCE NOTICE REGULATION: On June 25, 2001, the U.S. Supreme Court agreed to review a decision by the U.S. Court of Appeals for the Eighth Circuit regarding notification issues under the Family and Medical Leave Act of 1993. In contrast to a previous decision by the U.S. Court of Appeals for the Sixth Circuit, the Eighth Circuit held invalid a U.S. Department of Labor regulation requiring employers to provide employees with advance notice that their paid or unpaid medical leave will be counted toward their 12 weeks of leave under the Family and Medical Leave Act. A decision is expected in 2002. See " Ragsdale v. Wolverine Worldwide Inc ." jill.s.walschlager@bakernet.com or steve.a.miller@bakernet.com Alert Date: 7/1/01 US - SUPREME COURT AGREES TO CONSIDER WHETHER PRIOR NOTICE OF DISCRIMINATION BARS CONTINUING VIOLATION CLAIM: On June 25, 2001, the U.S. Supreme Court agreed to consider whether an Amtrak worker could invoke the continuing violation doctrine and seek damages against his employer for five years of allegedly discriminatory conduct, even though it would have been reasonable for him to file charges against the company at an earlier time. See " National Railroad Passenger Corp. d/b/a Amtrak v. Morgan." gerald.l.maatman@bakernet.com or michael.cox@bakernet.com Alert Date: 7/1/01 US - SUPREME COURT AGREES TO HEAR CHALLENGE TO EEOC'S "RELATION BACK" RULE: On June 25, 2001, the U.S. Supreme Court agreed to hear a challenge to a regulation of the U.S. Equal Employment Opportunity Commission that allows an employee alleging discrimination to verify a charge after the statutory filing deadline in situations where the individual already filed a timely but unsworn discrimination charge. This is known as the "relation back" doctrine. See " Edelman v. Lynchburg College ." william.j.dorsey@bakernet.com or carole.a.spink@bakernet.com Alert Date: 7/1/01 US - COMPENSATION LEVEL FOR TOP HUMAN RESOURCE EXECUTIVES REACHES US$200,000: On June 24, 2001, the Society for Human Resource Management released survey results which revealed that the median compensation level for top human resource executives has climbed to more than US$200,000 in salary and bonuses. brian.s.arbetter@bakernet.com or andrew.b.cripe@bakernet.com Alert Date: 7/1/01 US - COURT CERTIFIES CLASS ACTION IN WORKERS' CLAIM OF BIAS AT SOCIAL SECURITY ADMINISTRATION: On June 15, 2001, a federal judge in Pennsylvania certified a class of 130 Social Security Administration employees who alleged that the agency discriminated against older workers by failing to upgrade the pay scale for classifications of workers made up primarily of older employees. See " Duffy v. Massinari ." gerald.l.maatman@bakernet.com or kevin.s.simon@bakernet.com Alert Date: 7/1/01 US - FORMER AVANT! ENGINEER SENTENCED IN TRADE SECRETS CASE: On June 22, 2001, a former Avant! engineer was sentenced to one year in jail for receiving payments for stealing trade secrets from the chief rival of Avants!. See " Ex-Avant! Employee Sentenced ." robert.p.lewis@bakernet.com or jill.s.walschlager@bakernet.com Alert Date: 7/1/01 US - EMPLOYERS CAN CHECK JOB APPLICANTS' CRIMINAL HISTORY ON LINE: Employers in Indiana may determine whether a job applicant has ever been arrested or convicted of a criminal misdemeanor or felony by visiting a government-operated Internet site www.in.gov/isp/lch . Employers must pay a US$50 subscription fee, plus US$20 for each background check. Requests sent by mail or in person are US$7. Only limited criminal history checks are available online; job applicants requiring fingerprinting and a fuller criminal history that includes any juvenile record still will have to visit the state police. Starting on July 1, 2001, a new Indiana state law will make criminal history checks free to all school employers. See " Background Checks Move Online ." charles.r.topping@bakernet.com or jill.walschlager@bakernet.com Alert Date: 7/1/01 US - WAL-MART SEEKS REVIEW OF COURT ORDER REQUIRING IT TO ADVERTISE ADA VIOLATION: Wal-Mart has asked U.S. District Court Judge William Browning in Tucson, Arizona to reconsider his June 13, 2001 order finding Wal-Mart in contempt of court for not complying with a consent decree in a lawsuit against the retailer for disability discrimination. The court ordered Wal-Mart to make a 30-second television commercial admitting it violated the Americans With Disabilities Discrimination Act ("ADA") and air it for two weeks on major Arizona stations. As a result of the consent decree, in January of 2000, Wal-Mart hired two deaf employees and paid them back wages and damages. Wal-Mart also hired a sign-language interpreter during a two week training period for the employees. However, Wal-Mart was found in contempt of court when it failed to train supervisors on the ADA and had not inserted a sign-language interpreter into corporate training videos. See " Wal-Mart Seeks Review Of Court Order ." charlene.h.tsang@bakernet.com or andrew.b.cripe@bakernet.com Alert Date: 7/1/01 US - RAILWAY LABOR ACT'S MANDATES ARBITRATION OF DISABILITY CLAIM: On June 20, 2001, the U.S. Court of Appeals for the Seventh Circuit ruled that the Railway Labor Act's mandatory arbitration scheme bars a covered employee from litigating an Americans With Disabilities Act claim that requires a "potentially dispositive interpretation" of a collective bargaining agreement. The court rejected the EEOC's position that Congress intended the ADA to override the RLA provision regarding arbitration. See " Brown v. Illinois Central R.R. Co ." john.m.murphy@bakernet.com or brian.s.arbetter@bakernet.com Alert Date: 7/1/01 US - MAY METROPOLITAN UNEMPLOYMENT RATE FALLS BELOW THE U.S. AVERAGE: On June 27, 2001, the U.S. Department of Labor reported that in May of 2001, 206 metropolitan areas recorded unemployment rates below the U.S. average (4.1 percent, not seasonally adjusted), while 118 areas registered higher rates. Among the 16 metropolitan areas with rates below 2.0 percent, 9 were in the Midwest and 4 were in New England. Five of the seven areas with jobless rates over 10.0 percent were in California's Central Valley, and the two remaining areas were along the Mexican border in other states. See " Metro Unemployment." gerald.l.maatman@bakernet.com or charles.r.topping@bakernet.com Alert Date: 7/1/01 US - CONSUMER CONFIDENCE EDGES UP IN JUNE: The Conference Board reported on June 27, 2001 that renewed confidence in business and job prospects prompted a 1.8% point increase in consumer confidence in June, the second straight monthly jump. The report suggested that "consumers are currently more optimistic than they have been all year regarding business and job prospects over the next six months, and while their assessment of current conditions weakened, the present situation index remains at historically high levels." See " Consumer Confidence ." micheal.cox@bakernet.com or charles.r.topping@bakernet.com Alert Date: 7/1/01 US- LATINA WOMEN INCREASING IN THE WORKPLACE: On June 24, 2001, the U.S. Census Bureau released dating concluding that Latina-owned businesses have increased 200 percent from 1987 to 1996 and the numbers are still rising. However, access to finances and gaining acceptance in the business world continues to remain a challenge. See " Latina Women Are Rising Force In The Workplace ." abby.b.silverman@bakernet.com or cynthia.l.jackson@bakernet.com Alert Date: 7/1/01 US - FEDERAL APPEALS COURT REINSTATES ARBITRATOR'S RULING THAT ORDERED SEXUAL HARASSER BACK TO JOB: An arbitrator did not violate public policy or exceed his authority by reinstating a Texas factory worker who had been discharged for sexually harassing female employees, the U.S. Court of Appeals for the Fifth Circuit ruled June 7, 2001 . The court stressed that the pertinent issue was not whether the worker's sexual harassment of female co-workers itself violates public policy, but rather, whether the collective bargaining agreement, as interpreted by the arbitrator, does so. In reversing the lower court's ruling that vacated the arbitration award, the Court found that there was no explicit, well-defined, dominant public policy contrary to the arbitrator's decision. See " Arbitrator's Ruling ." brian.s.arbetter@bakernet.com or peter.s.gillespie@bakernet.com Alert Date: 7/1/01 US - NEW TENNESSEE LAW INCREASES CHILD LABOR PENALTIES: Legislation increasing the civil and criminal penalties for child labor law violations (S.L. 01-378) was signed by Tennessee Gov. Don Sundquist on June 12, 2001 . Under the new law, employers of minors younger than 14 years of age and anyone violating youth peddling provisions are subject to Class D felony charges and fines of between US$1,000 and US$10,000 for each violation. Previously, such violations of child labor laws were Class A misdemeanors, and civil penalties ranged from US$150 to US$1,000. Labor law violations involving minors aged 14 years or older remain subject to the lower penalties, as provided in Tenn. Code Ann. 50-5-112. See " Tennessee Child Labor Law ." brian.s.arbetter@bakernet.com or peter.s.gillespie@bakernet.com Alert Date: 7/1/01 US - AMA CHIEF FILES SUIT OVER JOB: On June 25, 2001, the chief executive officer of the American Medical Association (AMA) filed a lawsuit in Illinois state court, alleging the AMA took away his power to fire the head of the legal department after questions arose about a multi-million dollar land deal. See " AMA C.E.O. Sues Organization ." jill.s.walschlager@bakernet.com or carole.a.spink@bakernet.com Alert Date: 7/1/01 US - "NO-PIN" POLICY DOES NOT VIOLATE 1ST AMENDMENT: On June 21, 2001, the U.S. Court of Appeals for the Fifth Circuit ruled a police department's "no-pin" dress code policy for employees does not violate the 1st Amendment. The court said the cross pin in this case does not address a legitimate public concern, and therefore, does not violate the U.S. Constitution. See " Daniels v. City of Arlington ." howard.f.fine@bakernet.com or maureen.m.duffy@bakernet.com Alert Date: 7/1/01 US - DEPARTMENT OF LABOR ANNOUNCES TRAINING INITIATIVES: On June 20, 2001, U.S. Labor Secretary Elaine Chao announced several new initiatives to facilitate job training and skill development for workers, including an expansion of the Job Corps program to help participants obtain high school diplomas. See " DOL Announces New Training Programs ." gerald.l.maatman@bakernet.com or michael.a.duffy@bakernet.com Alert Date: 7/1/01 Disclaimer: The Global Employment Law Alert contains links to other web sites in order to provide comprehensive and timely information. Baker & McKenzie is not responsible for the practices or the content of such web sites. Further, this publication has been prepared for clients and professional associates of Baker & McKenzie and is intended to provide only a summary of selected recent legal developments. For this reason, the information contained in this publication should not be relied on as legal advice or regarded as a substitute for detailed advice in individual cases. The services of a competent professional adviser should be obtained in each instance so that the applicability of the relevant jurisdiction or other legal development to the particular facts can be verified This publication is copyrighted. Apart from any fair dealing for the purposes of private study or research permitted under applicable copyright legislation, no part may be reproduced or transmitted by any process or means without prior written permission of the Editors. ? Baker & McKenzie 2001. All rights reserved.