U.S. productivity grew a meager 0.4%
WASHINGTON -- U.S. productivity grew at an annual rate of just 0.4 percent in the first quarter, even weaker than initially estimated, while labor costs rose at a bit faster pace.
The Labor Department said Wednesday that the January-March productivity increase was revised down from the 0.7 percent gain initially estimated a month ago. Labor costs rose 2.9 percent, up from an initial estimate of a 2.7 percent gain in the first quarter. The rise in productivity was only marginally better than the 0.3 percent increase in the fourth quarter but below the 2.6 percent third quarter increase.
Productivity, a key factor determining how fast the economy can grow and how much living standards can increase, has been anemic throughout the economic recovery. It increased just 1.3 percent for all of 2017.
Productivity is the amount of output per hour of work. The small revision to the first quarter figure reflected the fact that the economy's overall output of goods and services as measured by the gross domestic product was revised down slightly to a GDP growth rate of 2.2 percent in first quarter instead of the initial estimate of 2.3 percent.
-- The Associated Press
Union pressures UPS in contract talks
The Teamsters union at UPS has voted to authorize a strike if necessary, a negotiating tactic that's aimed at ratcheting up the pressure in contract negotiations but does not signal a strike is imminent. The tally was announced late Tuesday.
The current agreements for the Teamsters at UPS last through July 31. The massive collective bargaining agreements cover roughly 260,000 workers at UPS, including drivers, package sorters and loaders, operations and dock workers.
The Teamsters said its members authorized a strike if necessary by a 93 percent margin. The vote at UPS Freight was by a 91 percent margin, according to the union.
Sandy Springs, Ga.-based UPS called the vote "an expected part of the negotiation process."
-- The Atlanta Journal-Constitution
Daimler unveils electric truck models
Daimler AG's truck unit unveiled two battery-powered models for the U.S. market, bolstering its bid to fend off Tesla Inc., Volvo AB and Volkswagen AG in the race to electrify big rigs.
The German manufacturer's Freightliner brand revealed the eCascadia, a highway hauler that can go as far as 250 miles between charges. The smaller eM2, with a range of about 230 miles and marketed for local delivery uses, also debuted at Daimler Trucks's North American headquarters in Portland, Ore.
The German manufacturer best known for its top-selling Mercedes-Benz luxury cars is also the world's biggest truck maker, giving it the most to lose should Tesla Chief Executive Officer Elon Musk succeed in producing a semi with a 500-mile range by 2020. Daimler Trucks chief Martin Daum has questioned how realistic Musk's plans are, but he also has to contend with established rivals including Volkswagen, which is spending $1.7 billion to develop electric drive trains and autonomous tech for trucks and buses. Volvo also plans to display electric and autonomous prototypes for Japan this year.
-- Bloomberg News
Crime tops costs in retailers survey
The little guys and big guys -- shoplifters and organized crime -- account for the lion's share of "shrink" at U.S. retailers.
Criminal activity along with bookkeeping errors canceled out an average of 1.33 percent of sales in 2017 versus 1.44 percent in 2016, according to the National Retail Federation and the University of Florida.
Shoplifting and organized retail crime accounted for 36 percent of shrink; internal employee theft, 33 percent; administrative paperwork errors, 19 percent; Vendor fraud or mistake, 6 percent; other causes, 6 percent.
For the years ahead, cybersecurity is a top concern and many retailers have introduced online incident response plans.
"Criminals continue to become more sophisticated in this area," said Richard Hollinger, a University of Florida criminology professor and the lead author of the report. "This is a growing threat that will require more resources going forward."
-- Bloomberg News
Workers rally to save coal-fired plant
PHOENIX -- More than 300 people who say their livelihoods depend on a coal-fired plant on a sprawling American Indian reservation rallied in Phoenix Wednesday to request a 90-day delay in steps being taken to shutter it by 2019.
Demonstrators -- including miners who extract the coal that fires the plant, plant employees, their relatives and tribal and union leaders -- asked for more time to allow a potential buyer of the Navajo Generating Station in northern Arizona to work out the details of a purchase they said would save jobs and a major source of funding for the Navajo Nation and Hopi Tribe.
The power-generating plant is owned by several utility companies including its operator, the Salt River Project, which owns 42.9 percent and controls another 24.3 percent on behalf of the U.S. government. The utilities decided early this year to shut the plant down when its lease expires and use cheaper power sources like natural gas.
-- The Associated Press
Mazda shuns electric cars for diesel
Mazda Motor Corp. will continue to develop diesel technologies and won't rush to embrace electric vehicles, even as tougher emission rules globally spur rivals including Nissan Motor Co. to step up their plans for environmentally friendly cars.
The Hiroshima-based car maker sees diesel as an opportunity rather than a risk, and will continue to develop next generation engines for the fossil fuel, Kiyoshi Fujiwara, who oversees research and development at Mazda, told reporters in Tokyo. The automaker doesn't see customer interest in EVs to pick up any time soon, Fujiwara said.
"Consumers won't buy EVs just because of Elon Musk," he said.
-- Bloomberg News
Business on 06/07/2018