Union asks U.S. labor board to examine vote at VW plant
The United Auto Workers has asked the U.S. National Labor Relations Board to order a new unionization election at the Volkswagen plant in Chattanooga, Tenn., asserting that the union’s loss last week was because of improper interference by the state’s lawmakers.
The complaint filed with the labor board asserts that statements made by Sen. Bob Corker and some state lawmakers amounted to “threats” that swayed the VW workers to vote against the UAW. In a stinging defeat for the union, workers at the Chattanooga plant voted 712-626 against joining the UAW, even though the company did not oppose the unionization effort.
In the days before the vote, several state lawmakers warned that they would block future subsidies to the plant — making it less likely to expand — if the workers voted for the UAW. In a statement, the UAW said the anti-union campaign included “widely disseminated threats by elected officials that state-financed incentives would be withheld if workers exercised their protected right to form a union.”
CREDIT SUISSE ADMITS WRONGDOING IN SEC CASE
Credit Suisse has become the latest big bank to admit wrongdoing to the Securities and Exchange Commission, striking a deal over its failure to comply with a cardinal rule of the financial industry.
The bank, based in Zurich, was accused of advising clients in the United States without first registering at the SEC. Credit Suisse paid $196 million to settle with the federal agency, which requires banks and other firms that offer investment advice to comply with basic registrations rules. While the $196 million penalty is significant, Friday’s admission of wrongdoing underscored the importance of the case. It is the fifth such admission since the SEC — in a major reversal — modified its longstanding policy of allowing defendants to settle without “admitting or denying” wrongdoing.
FITBIT RECALLS FORCE DEVICE AFTER COMPLAINTS
Fitbit issued a voluntary recall for the Fitbit Force wrist-worn fitness tracker and would stop selling the device immediately after determining that the device caused serious skin irritation for some users.
The company said tests had found that the Fitbit Force was causing allergic contact dermatitis, a condition that occurs when substances touching the skin cause irritation or red, itchy rash reaction.
The recall is a serious setback for the company. When people started wearing the Fitbit Force wrist device, the company’s latest wearable computer for tracking one’s health, the reviews were largely glowing. But after just a couple of weeks, that excitement turned to concern for some customers, who began developing rashes on their wrists and took to the forums on the company’s site to voice concern about the issue.
KERING PROFIT NEARLY WIPED OUT IN 2013
Kering, the corporate parent behind Saint Laurent couture and Puma streetwear, says profits were nearly wiped out last year by costs associated with disposing of its retail chains Fnac and Redcats.
The company, known until last year as PPR, reported net profit of only ¤50 million ($69 million) last year, down from ¤1 billion in 2012. The name change is part of the group’s plan to focus on high-end fashion and trendy sports brands. It owns the Gucci and Stella McCartney brands as well as surf- and skate-fashion house Volcom.
Kering lost over ¤800 million in 2013 through the sale of home electronics retailer Fnac and other costs of separating itself from Redcats.
MOODY’S UPGRADES SPANISH BOND RATING
Ratings agency Moody’s has upgraded Spain’s bond rating by one notch, citing improved economic prospects and a rebalancing of the economy away from the construction industry toward export-led growth.
Moody’s, which made the announcement late Friday, lifted ratings to Baa2 from Baa3, saying the outlook was now “positive.” It also upgraded Spain’s short-term rating from Prime-3 to Prime-2. The agency says the government had made “faster than expected” progress with structural reforms in the labor market and public pensions system.
APPLE PHONES VULNERABLE TO HACKERS
A major flaw in Apple software for mobile devices could allow hackers to intercept email and other communications that are meant to be encrypted, the company said. Experts said Mac computers were even more exposed.
If attackers have access to a mobile user’s network, such as by sharing the same unsecured wireless service offered by a restaurant, they could see or alter exchanges between the user and protected sites such as Gmail and Facebook. Governments with access to telecom carrier data could do the same. “It’s as bad as you could imagine, that’s all I can say,” said Johns Hopkins University cryptography professor Matthew Green.
SAMSUNG, APPLE FAIL TO SETTLE BEFORE MARCH
Apple and Samsung have failed to settle their patent dispute despite a daylong meeting between top Samsung executives and Apple chief executive Tim Cook hosted by a mediator earlier this month.
That’s according to a court filing the companies made Friday in the 2-year-old case before Judge Lucy Koh in the U.S. District Court in San Jose. While the two sides said they remain willing to work through a mediator, the lack of a settlement points them toward a trial in March.