News

Monday, February 16, 2009

BSC sues competitors over illegal labor

BOULDER, CO — A cleaning company is suing two of its competitors, claiming they were able to bid contracts at lower prices because they employ illegal immigrants, according to the Colorado Daily.

Last week, Dustbusters filed a lawsuit against Finishing Touch Janitorial Services and Porter Industries for allegedly using illegals to secure contracts for city and private buildings, the story stated.

According to the suit, "Finishing Touch was able to submit a lower bid than their competitors ... because they knowingly employ or contract with illegal aliens to perform the work and as such, are able to pay those workers less than legal workers."

The city of Boulder requires legal documentation for all workers before a contract is formed; there is no evidence that either company filed falsified paperwork, the story noted.

If either of the companies in question did hire illegals to work for them, it would be a contract violation; however, the companies could keep their city contracts by firing any ineligible workers and replacing them with verifiably legal workers, the story added.

According to the Pew Hispanic Center, 17 percent of all JanSan employees (an estimated 680,000 workers) are illegal immigrants.

Kimberly-Clark sees eight percent drop in profit

IRVING, TX — Towel and tissue manufacturer Kimberly-Clark announced that its fourth-quarter profits dropped by eight percent, according to an Associated Press story hosted by Google.com.

Earnings were $419 million, as compared to $456 million in the year-ago quarter, the story stated.

Total sales slipped three percent from $4.76 billion to $4.6 billion, the story noted.

Deutsche Bank analyst Bill Schmitz Jr. said: "Management is doing right to guide expectations well below the Street as currency, pension and negative manufacturing variances weigh on earnings in 2009."

Kimberly-Clark may cut prices on certain items due to poor sales in North American in Europe, the story added.

Guilty plea in mold remediation fraud case

NEW HAVEN, CT — The owner of a mold remediation company pleaded guilty to defrauding school systems in Easton, Bristol and Manchester after a long-delayed trial, according to The Connecticut Post.

Ronald Schongar, owner and operator of Microb Phase, the company contracted by several schools to perform remediation work, was first indicted in 2006 on three counts of mail fraud and two counts of wire fraud for his involvement in mold fraud, the story stated.

He claimed he applied a product called Microb Shield, which is registered with the Environmental Protection Agency and that he had permission from the agency to use it. However, Schongar had no authorization to use or advertise the product as it is owned by Midland, Michigan-based AEGIS Environmental, the story noted.

Some documents seized by police in 2003 supposedly verifying Schongar's qualifications are believed to be counterfeit, the story added.

According to federal sentencing guidelines, Schongar should receive anywhere from four to 24 months in prison.

Kaivac hires new U.S. sales director

HAMILTON, OH — Kaivac Inc. has promoted Tim Wolf as the company’s new sales director in the U.S., according to a press release.

Wolf, a 2004 graduate of Purdue University and formerly with Select Sales and Marketing based in Cincinnati, Ohio, has been with Kaivac for nearly three years, the release stated.

Wolf's first duties with Kaivac were to oversee manufacturer’s representatives as well as distributor sales and marketing in three key Midwestern states, the release noted.

Wolf said: "I am really thrilled about this new opportunity. We have a very talented team of [manufacturer’s] representatives and distributors throughout the country. They are all working hard to ensure Kaivac’s growth and success in the years to come."

Conditions at Connecticut Paper Mill Reap $323,000 in Proposed Fines

VERSAILLES, CT — Cascades Boxboard Group faces $323,000 in Occupational Safety and Heath Association (OSHA) fines for 52 alleged serious and repeat violations of safety standards, according to Occupational Health & Safety magazine.

The inspection found numerous instances of extensive rust, corrosion and physical damage throughout the building that compromise its structural stability, the story stated.

Specific conditions identified during the July inspection include:

· Unguarded machinery and floor openings

· Damaged ladders and lack of fall protection

· Uninspected or inadequately maintained fire extinguishers

· Corroded wire lifting slings

· Lack of personal protective equipment and deficiencies involving respirators, fork trucks, propane tanks, electrical safety, hazardous energy control and hazard communication

· Work in confined spaces.

C. William Freeman III, OSHA's area director in Hartford, Connecticut, said: "There is no excuse for employees to work in such conditions. The hazardous conditions must be addressed promptly, effectively, and completely to protect the safety and health of these workers. Failure to pay proper and timely attention to safety and health requirements, including building maintenance, can result in considerable human and financial costs down the line."

Four repeat citations have been issued for conditions similar to those cited in a 2007 OSHA inspection that were never corrected, the story noted.

The company has 15 business days to meet with OSHA or to contest them to the independent Occupational Safety and Health Review Commission, the story added.

Dow slashes 270 more jobs

MIDLAND, MI — About 270 more will join the ranks of unemployed Americans as Dow Chemical lays off another 270 at plants in Plaquemine and Hahnville, Louisiana, according to an Associated Press story hosted by Forbes.com.

About 160 of Dow's 1,600 employees in Plaquemine will lose their jobs, along with about 110 of the 1,100 workers at the Hahnville complex, the story stated.

Dow's repeated layoffs are part of a recession-driven worldwide work force reduction, the story noted.

By slashing 5,000 full-time jobs, closing 20 plants and selling off businesses to rein in costs amid sharp declines in demand for its products, Dow expects annual companywide savings of about $700 million by 2010, the story added.

Janitor donates side business profits to school

HEMET, CA — A Whittier Elementary School janitor pledged to contribute 50 percent of the profits from his weekend automobile detailing business to the school he cleans, according to The Valley Chronicle.

Scott Genton has been janitor at Whittier for only a month, but he already has close, friendly relationships with students and staff, the story stated.

"I see how they struggle. They don't have the money for awards and stuff. Obviously it's tough to go and ask the parents because they are strapped to the metal too," said Genton.

Genton charges $20 for cars, $25 for trucks and $30 for lifted trucks, and can make upwards of $400 a day both Saturday and Sunday; he would like to donate around $400 a week to the school, the story noted.

Genton said: "I would like to start a high school yearbook fund. Some students just can't afford them. I'd like to be able to create a fund that would help the kids that can't afford a yearbook to get one. School only comes around once, and once it's done, it's done."

There is no deadline to Genton's donations; he plans to donate for as long as he owns his business, the story added.

For detailed information, or to schedule an appointment with Genton, call (951) 893-7658.