American Airlines: Going for Great or Going for Racial Insensitivity?; Congress Lets Banks Off the Hook. For Now; Things Aren’t Looking Sunny at Tesla Lately

Something racially insensitive in the air…

ID-100303427

Image courtesy of khunaspix/FreeDigitalPhotos.net

Some say there’s no such thing as bad publicity but I’m skeptical about that. Take for example American Airlines. The NAACP just issued an advisory cautioning African Americans about traveling on American Airlines because the organization found an alarming pattern of “disturbing incidents” by the airline where black passengers were removed from flights. And the NAACP might just be onto something since it listed four distinct incidents where African American passengers were either taken off flights or moved to other sections of the aircraft despite holding tickets for higher class cabins. The NAACP said that the incidents “suggest a corporate culture of racial insensitivity” which I am pretty certain counts as bad publicity no matter how you slice it. Of course, American Airlines is “disappointed” about the advisory, and not just because it looks sooooooo bad. However, it still plans to reach out to the NAACP and invite representatives to its corporate offices in Texas to discuss the situation. Of course, just like with any bad publicity, American Airlines shares are down over 2%. Rightfully so, I suppose.

Don’t bank on it…

ID-100206984

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

You might not remember when, during President Obama’s presidency, a regulation was passed that allowed consumers to file class-action suits against banks.  But Congress remembered and today duly killed the regulation from the Consumer Financial Protection Bureau that was established back in July. Just. Like. That.  The rule went like so: If a consumer was unhappy with a financial product or service, think of Wells Fargo or Equifax, and wanted action and accountability from the institution, the said financial institutions could not force a consumer into mandatory arbitration. And if a consumer wanted to participate in a class-action lawsuit, they could. Financial institutions had to nix clauses in their contracts that effectively forced consumers into arbitration. Before that rule came about, consumers could not sue. Could. Not. Sue. There was no option to settle lawsuits. Dems are hopping mad because they wanted that rule to stay put arguing that it allowed consumers to hold banks and financial institutions accountable and that arbitration always seemed to go more in favor of the banks. Republicans argued that class-action suits do not benefit the consumers anyway and have the potential to greatly harm businesses that ultimately and adversely affect the economy. Consumers are no better off, they argued, whether they go through arbitration or are part of a class-action lawsuit. Republicans even cited information from a Treasury report supporting those claims.  Of course, the recent scandals at Wells Fargo and Equifax didn’t exactly help the Republicans argument. Yet miraculously, Congress still managed to put the kibosh on the rule. Consumer advocates are all over this and insist that the war is not over. Except that a key battle was just lost.

Rolling heads…

ID-100300187

Image courtesy of Ppiboon/FreeDigitalPhotos.net

While the ranks at Tesla continue to get smaller by the hundreds following an ugly recall of 11,000 Model X SUV’s, employees at Tesla-owned SolarCity are starting to smell the stench of unemployment too.  Over 200 employees were dismissed from their jobs at SolarCity with the dismissed being told that they lost their jobs for performance reasons, or lack thereof. However,  that proved to be an awfully strange excuse considering that several of the aforementioned employees said they hadn’t even received performance reviews since Tesla acquired SolarCity last November for $2.6 billion. Things that make you go hmmm.Tesla did announce it would be firing employees from SolarCity’s Roseville, California office. And it did. Except the carnage didn’t stop there. Apparently, SolarCity employees all over the country were also fired.  As for the Roseville office, some say the office will stay open with 50 employees while others insist that the whole office is being shut down.  In any case, I’m guessing the holidays are going to be awkward this year for Elon Musk and his family since SolarCity was founded by his cousins Lyndon and Peter Rive back in 2006. Critics of Musk’s plan to buy the solar company felt that it would distract the CEO from making great cars.  Maybe. Maybe not. But one thing is for sure: A lot of people are wondering how much longer it is going to be until Elon Musk finally rolls out the super-hyped but affordable Model 3.

 

Apples to Apples: Warren Buffett Increases Stake in Tech Giant; Groupon’s Earnings Show Everyone Loves a Deal; Trump Wine Makes Trouble

Well, if Warren Buffett’s doing it…

id-10021885

Image courtesy of renjith krishnan/FreeDigitalPhotos.net

It’s all about Apple and airplanes these days for Warren Buffett. His company, Berkshire Hathaway, again increased its position in the iPhone maker to 57.4 million shares back in December. This means the company now boasts a hefty $7.74 billion stake in the Cupertino-based company. The Oracle of Omaha also decided to scoop up more shares in the airline industry’s four biggest carriers in the United States: American Airlines Group, Delta Airlines, Southwest Airlines and United Continental Holdings. This little purchase set Berkshire Hathaway back by about $9.3 billion. What’s a bit weird about Warren Buffett’s new-found affection for Apple, is that he has never been much of a fan of tech stocks only because – or so he would like us to think – that they are apparently outside his realm of understanding. I’m pretty sure there’s very little in this world that’s outside his scope of knowledge. Just saying. The airline investment was also a little surprising given Warren Buffett’s hands-off stance on the industry for the last twenty years. Now, however, he apparently sees some potential in airlines that he hadn’t seen in years. In any case, the timing of Berkshire Hathaway’s Apple purchase couldn’t have been better because shares of Apple closed at an all-time high yesterday, as I noted here in this blog.  In fact, shares of all the companies in which Berkshire Hathaway invested have gone up. Because if Warren Buffett puts his fiscal stamp of approval on a company, investors take that as a sign – albeit a not very scientific one –  and they all tend to follow suit.  As for his ten year old Walmart stake, the news was not as good. Berkshire Hathaway dumped almost all of its shares  – close to a billion dollars worth – and analysts are now wondering just how bad of an omen is that.

Get your Groupon, yo!

id-100192702

Image courtesy of ddpavumba/FreeDigitalPhotos.net

Groupon, it seems, is not only beloved to bargain hunters, but to Wall Street as well, as the company just released its fourth quarter earnings, easily beating estimates all-around. For a company that’s all about posting discounts, it took in revenues of $935 million, when analysts only expected $913 million. While the company earned close to $370 million in profit, analysts were left a bit bummed, since last year’s number was higher, at almost $372 million. However, Groupon did add 7 cents per share, more than triple the expected 2 cents. Plenty of its success from the quarter is apparently due to its acquisition of website LivingSocial, which Groupon scooped up back in October.  Groupon’s customers increased by two million, one million of whom came from LivingSocial, and its total amount of customers purchased 11% more goods and services during the same period last year. Interestingly enough, the amount of purchases this past quarter was a smidgen lower, coming in at $1.70 billion, when last year at this time it was more like $1.71 billion. But hey, what do you expect from bargain-hunters, after all?

Cheers…

id-10066482

Image courtesy of Graphics Mouse/FreeDigitalPhotos.net

In today’s installment of “Who’s Next to Face a Boycott for Carrying Trump Merchandise?”and the #GrabYourWallet campaign, we turn our attention to Wegmans Food Markets.  The offending merchandise in question is wine, or rather products from the Trump Winery, of which Eric Trump, President Trump’s son, is the President. While a group aptly named “Stop Trump Wine,” is calling upon Virginians to boycott businesses that carry the beverages because “Eric Trump shares the views of his father,” the local chapter of the National Organization for Women got 300 of its members to come up with ways to get Wegmans to put the kibosh on the products. But my question is, if the wine is really good, will the boycott be effective? Just wondering. Like all other retailers, Wegmans, with its 92 stores, explains that it only looks at how a product is performing. If the products in question are performing well, with people still buying them, and the boycotts aren’t necessarily having an effect, chances are, the wine stays put.

French Company Goes Organic for U.S. Acquisition; U.S. Airlines Gear Up for Cuba; U.S. Banks Bond Over Brexit

Let them eat organic cake!

ID-10098829

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Dannon Yogurt’s parent company, Danone (said with a French accent) is looking to pick up  a major U.S company that will effectively double its size. That’s assuming all goes according to plan. Danone wants to offer organic food provider, WhiteWave, purveyor of favorites like Silk Almond and Soy Milk, Horizon Milk and Earthbound Farms, $10.4 billion in cash for the fiscal pleasure of its company. That’s a 24% premium over WhiteWave’s thirty day average closing price and comes out to about to $56.25 per share. But for Danone, whose looking to make itself a bigger presence in the United States, it’s well worth it, since WhiteWave’s offerings tend to attract wealthier consumers. WhiteWave generates annual sales of about $4 billion and with this acquisition, Danone expects to see a $300 million boost in operating profit. Danone has also been struggling in other parts of the world and this acquisition would ease the burden of some of those lesser-performing markets. FYI, when companies offer to buy other companies, their offers tend be at least at a 30% premium. Because this offer was not, it theoretically means that the bidding door is still open to other offers from companies like Coca Cola, PepsiCo and Kellogg Co, to name but a few. In a regulatory filing, though, WhiteWave did graciously say that it wouldn’t solicit other offers. However, there are exceptions. Should WhiteWave go with another offer, Danone still wins because it will get a $310 million break-up fee.

Bienvenido…

ID-100335916

Image courtesy of Tuomas_Lehtinen/FreeDigitalPhotos.net

Believe it or not, Hillary Clinton wasn’t the only topic of conversation today coming out of Washington DC. President Obama announced a proposal to allow eight U.S. airlines to provide nonstop service between Cuba and ten U.S. cities, beginning this fall. This will mark the first time in 50 years that travel of this kind will be available. And all this just one year after diplomatic relations were re-established. The city and airline selections were made by the Department of Transportation and the lucky airline winners are: Alaska Airlines, American Airlines, Delta Airlines, Frontier Airlines, JetBlue Airways, Southwest Airlines, Spirit Airlines and United Airlines. American Airlines is actually no stranger to the island nation, as it has been offering charter services there since 1991. Just last year the airline made over one thousand chartered flights to Cuba, while JetBlue made over 200 chartered trips. That’s awfully welcome news for an industry that took a fiscal beating lately. The cities that can look forward to the new service had to have have substantial Cuban-American populations already in place. Hence, Florida finds itself the recipient of 14 out of the 20 daily nonstop flights, since it boasts the largest Cuban-American population. The cities include: Atlanta, Charlotte, Fort Lauderdale, Houston, Los Angeles, Miami,  Newark, New York City, Orlando and Tampa. According to Cuban officials, the number of American travelers to Cuba is up 84%, compared to last year, in just the first half of the year.  But there is still a trade embargo in place, which does include a travel ban. However, there are twelve convenient categories of reasons to fly to Cuba that you can check off should you decide to make your way to Havana any time soon.

Come together…

ID-10045489

Image courtesy of digitalrt/FreeDigitalPhotos.net

It’s a fiscal kumbaya as four U.S. banks offered up their sincerest support for London following the Brexit vote. The gracious supporters include, JPMorgan, Goldman Sachs, Bank of America Merrill Lynch and Morgan Stanley. The banks agreed to help British Finance Minister George Osborne find ways to ensure that the U.K. remains the prominent financial player that it always was, pre-Brexit. And of course they all will try and find new and exciting ways to lure and retain big banking to London so that the consequences of the Brexit don’t do the country in completely. While that sentiment no doubt warmed the hearts of investors all over the world, the investment banks could not offer up as much optimism as far as the jobs situation is concerned. After all, “no one in their right mind would currently invest in Britain.” Keeping those jobs there might might be the biggest challenge of all and no one wants to make any promises on that. Especially Jamie Dimon, who had previously mentioned that around 4,000 jobs could make their way out of London. In the meantime, the French wasted no time – I mean NONE! – in announcing to the world that it would make its tax regime as enticing as possible, in a not at all subtle attempt to grab some pricey banking business from London.

The Hostess with the Mostess is Baaaack; Airlines Take a Fiscal Hit, Yet Consumers Shed No Tears; Starbucks Set to Raise You Up

 

Sugar high…

ID-100240488

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

No need to get all sentimental here, but Hostess has arrived. Again. The Twinkie maker is set to go public in the fall, following a deal with Gores Holdings which picked up a huge stake in the company. It seems like only yesterday when Hostess rode a fiscal roller-coaster that almost had the sweets maker go bust four years ago. But those days are now far behind, as the Ding-Dongs proprietor boasts a $2.3 billion valuation. The folks who bought the company, Metropoulos & Co. together with Apollo Global Management LLC, were the same ones who restored Pabst to its original glory. They picked up Hostess for $185 million and borrowed another $500 million to basically rebuild the company from the ground up. They did just that, but smaller. Much smaller. Almost all union workers were ousted, equipment was upgraded and even robots were brought in for some labor. Just like “The Jetsons.” Sort of.  Before Twinkies disappeared from shelves for those dark seven months, the company employed 19,000 people, most of them union. Now there are closer to 1,200 employees – not including robots, and more than 95% of them are NOT union workers. Top brass also unloaded Wonder Bread and Nature’s Pride, got products into movies theaters and restaurants, launched a new marketing campaign with celebs, including the illustrious Will Ferrell and threw in a countdown clock in New York’s Times Square for New Year’s. Hostess also doubled the shelf life of its products to 65 days. You might not find that especially appetizing, but investors sure did. And in case you were skeptical about the Will Ferrell choice, then consider that Hostess’s market for sweet-baked goods is up over 16% and posted $650 million in revenue for 2015. The company is now poised to hit $772 million in revenue for 2016 and by 2017, profit is expected to grow to $101.8 million.  If you’re still not convinced that the Hostess tide is turning, then look out for frozen fried Twinkies, making their coronary debut in a few weeks. Then we’ll talk.

Karma, I tell you…

ID-100162084

Image courtesy of Iamnee/FreeDigitalPhotos.net

Looks like the airlines have taken a hit and I suspect no one feels too sorry for the industry’s top players. Delta,  American Airlines, United Airlines and even Southwest posted declines between 12% and 31%. So sad, no? The demand just wasn’t enough for air travel and that, coupled with some other factors, made for some very unpleasant earnings and share declines. But cry me a river. These are, after all, airlines we are talking about. In my most humble opinion, it sometimes feel that they make a sport out of fleecing travelers. Just saying. Delta shares fell on the news that its revenue per each seat flown one mile dipped by 5%. Despite the wordiness of that calculation, it is how airlines measure their success. It also them helps determine just how much pricing power they have. And wouldn’t ya know it. They currently don’t have as much as they’d like. For now anyway. And that’s welcome news for travelers who aren’t too happy shelling out big bucks for uncomfortable seats. Delta, the second largest airline, actually had been expecting the decrease, but a smaller one of no more than 4.5%. The airline also ate a $450 million loss because they bet against fuel prices. Actually, Delta bet that fuel prices would jump and locked in some fuel purchase contracts called hedge contracts. Prices did, in fact, jump. Just not as much as Delta had hoped they so Delta ditched the contracts and ate a half billion dollars on them. So sad, no?

Nothing to buzz about…

ID-100112674

Image courtesy of zirconicusso/FreeDigitalPhotos.net

It’s July, oh faithful Starbucks drinker and do you know what that means? It means that it’s time for the price of your caffeine fix to go up. After all, it’s tradition. Actually, the tradition is to raise the prices during the first week of July, yet here were are and no increase. But fear not because Starbucks already made a statement that a price increase is on the horizon. Besides, due to a pricing glitch, some loyal drinkers were already charged that increase. Oops. However, those unfortunate consumers could have only been overcharged by, at most, 30 cents. There’s no official word yet on which drinks will be getting pricier, but  the ones that do go up will only go up by as much as – you guessed it – 30 cents. There is one more caveat, though. The amount of money a drink increases varies by region. So perhaps a move might be in order. Just saying. The fact is coffee futures keep going higher and are up over 10% just this year. Even if you are annoyed that your coffee habit is about to eat a bigger chunk out of your bank account, Starbucks knows that you’re still gonna keep whipping out the cash for it. In any case, if you think you did get overcharged on your recent Starbucks purchase, you can call the customer service hotline at 1-800-782-7282 to request your refund.

Banking Scandal or Ben Affleck Movie?; Airline Ranks and Tanks; Drones to the Rescue

Who gets the movie rights?

ID-100234629

Image courtesy of cuteimage/FreeDigitalPhotos.net

The latest scandal to come out of the banking world has its very own name – “The Panama Papers.” It seems a Panamanian law firm called Mossack Fonseca helped a slew of politicians, celebrities, businessman etc. to create offshore accounts and shell companies for the last forty years. It’s estimated that 500 banks all over the world enlisted the help and resources of Mossack Fonseca to help them set up these shell companies since 1977. Fast forward to a year ago when an anonymous source leaked some 11 million documents to Germany’s biggest newspaper, Suddeutsche Zeitung, which then enlisted the help of the International Consortium of Investigative Journalists. The ICIJ shared information and hunted down leads for over a year in an effort to publicize “The Panama Papers” that contain information on some 214,000 offshore companies. The documents also have plenty of unflattering details about Russian President Vladimir Putin, FIFA officials and over 30 other people and companies that are blacklisted by the U.S. government. These include people indicted for corruption and have ties to drug trafficking and terrorism. Strangely enough, Mossack Fonseco only seems to know the true identities of just over 200 companies out of the over 14,000 that the firm managed to incorporate just in the Seychelles. Now banks across Europe find themselves under the microscope as regulators try to establish if and how those banks found ways to hide assets. The Kremlin, ironically, is calling the allegations “a series of fibs” and thinks its just an attempt to thwart Putins chances in upcoming elections, which are said to be rigged anyway. FIFA, another group that could use a lesson or two on business ethics, called the allegations “ridiculous.” To be fair, it’s not clear to certain people that any actual illegal activity occurred. Of course the banks denied any wrongdoing while Mossack Fonseca calls itself the victim of a data breach.

Bumpy landing…

ID-100261247

Image courtesy of cuteimage/FreeDigitalPhotos.net

Results are in for the Airline Quality Rating and you might just be surprised. Or not. Virgin America took the top spot, even earning the best score in the baggage handling rate category. While Virgin America no doubt takes pride in getting the best ranking, Sir Richard Branson is not exactly celebrating considering Alaska Airlines is buying him out for $2.6 billion. Alaska Airlines, by the way, is paying $57 in cash per share, – a 47% premium over Virgin America’s closing price on Friday. Incidentally, Alaska Airlines came in fifth, though it was ranked highest when it came to fewest customer complaints. But it is anyone’s guess how this buyout will impact Virgin America’s rating next year. In any case, JetBlue came in at number two with Delta, shockingly enough, earning a very respectable third place ranking. Overall industry performance improved slightly. Really slightly. Six carriers actually improved, while another six did not. Spirit came in dead last, but in all fairness, Spirit is new to the list. Also in all fairness, Spirit ranked the highest in customer complaints, which makes sense considering that its culture is best described as “take it or leave it.” Amerian Airlines plunged three spots from last year to number 10. Which sounds about right. American, by the way, is the largest carrier in the world, just not on the United States. United is and yet it doesn’t exactly boast an enthusiastic following. Hawaiian Airlines ranked number one for on-time performance. And that’s really great. Especially if you’re going to Hawaii. Which unfortunately, I am not.

Start-up STAT…

ID-100152850

Image courtesy of bplanet/FreeDigitalPhotos.net

Bay Area start-up Zipline just scored $18 million in funding  – but not from just any investors.  Microsoft co-founder Paul Allen and Yahoo Founder Jerry Yang saw fit to plunk down tons of cash for the drone company but the question is: what makes this drone company different from all the other drone companies? At least for Paul Allen and Jerry Yang. I suppose it has something to do with the fact that Zipline founder Keller Rinaudo is using his drone technology not for delivering books and groceries, but rather to save lives in third-world countries. Zipline’s drones will be delivering blood and much-needed medical supplies to remote, hard-to-reach areas in Rwanda. Rinaudo, a Harvard-trained scientist said that there is “nothing more precious than blood and medicine” and plans on making those items much more accesible than they have ever been. He also wisely pointed out: “Getting medicine to remote places is both a huge market and a global challenge.” As of now places in Rwanada get resupplied a few times a year. But Rinaudo is planning for his drones to make up to 150 drops a day come July. The government of Rwanda is footing the bill to make that happen. And unlike many other types of drones that can’t operate properly in inclement weather, Zipline’s drones can, are able to carry up to 3.5 lbs. and fly within a 75 mile range. Considering that Rwanda is one of the poorest nations in the world, it will become the first country to employ commercial drone delivery, all while Amazon and other companies continue fighting regulatory battles and FAA hurdles.

 

Global Markets Fight Back Terrorists; Lumber Liquidators Whacked with Another Settlement; Starbucks Feeds America’s Hungry

The terrorists have not won…

ID-10073474

Image courtesy of FrameAngel/FreeDigitalPhotos.net

Markets all over the world took a beating because of the cowardly terrorist attacks in Belgium that left dozens dead and many more wounded and forever haunted. Companies dealing in travel and hospitality industries suffered the most today with Royal Caribbean losing almost 4% and Carnival Cruise Lines taking its own 3% hit. Online booking site Priceline Group endured a 3% loss as airlines like Delta Airlines and American Airlines Group lost a couple of percentage points, as well. It’s no surprise, I suppose, that healthcare stocks actually saw increases, as did material stocks. But in a big f.u. to terrorism, the Dow Jones actually picked up a point as global markets rebounded later in the day, even those in Europe. Gold also rose, because well…gold always rise. Investors consider the precious metal as a perennially safe bet. Seems fair.

Tiiiiiiimmmmbbbberrrr…

ID-10095619

Image courtesy of FrameAngel/FreeDigitalPhotos.net

The settlements just keep coming in for Lumber Liquidators Holdings. Today’s award goes to the California Air Resources Board (CARB) – I laughed at the acronym too – in the amount of $2.5 million. The number seemed a bit low to me, especially since 40 of Lumber Liquidators 375 stores are in California, not to mention, the company’s flooring has the potential to cause cancer from the high levels of formaldehyde present in them.  Not exactly minor details, I feel. But the other reason I’m scratching my head is because there was no formal finding of any violation, nor was there any admission of wrongdoing by Lumber Liquidators. Just saying. This settlement, by the way, has nothing to do with Lumber Liquidator’s previous settlement with the DOJ that had the flooring company shelling out $10 million to the government agency. Naturally, shares of Lumber Liquidators are up by almost 16% and closed at $13.93. But considering that shares lost more than 70% of their value since that scathing “60 Minutes” report last March, and there are still plenty of class-action suits headed toward Lumber Liquidators, you probably don’t want to hold your breath waiting for the company to fully fiscally recover. In fact, if you ask Kase Capital’s Whitney Tilson,  who is a big fan of shorting Lumber Liquidators, he thinks the flooring company actually has a 50% chance of going bust.

Bon appétit…

ID-100382702

Image courtesy of FrameAngel/FreeDigitalPhotos.net

Don’t feel so bad skipping that sandwich you’ve been eyeing at Starbucks. If nobody buys it, you might just help feed someone who is considered “food insecure.” The plan came from baristas and now the coffee chain has made a pledge to donate 100% of its unsold food through FoodShare and Food Donation Connection (FDC). It’s all in an effort to feed the 48 million Americans who don’t have the luxury of knowing if or when their next meal is coming.  It is estimated that 15% of American households are considered “food insecure” while at the same time an estimated 70 billion of food waste is produced by Americans that are far more fortunate. Starbucks had already been donating pastries and other types of foods that had longer shelf lives since 2010. The challenge, however, was how best to preserve the highly perishable products like salads and sandwiches. But now the FDC will send refrigerated vans to all of Starbucks 7,600 plus U.S. locations, pick up all those unsold goodies and fill the bellies of those who could really use them. Starbucks plans to have given out 5 million meals by the end of 2016.

 

Michael Bolton: IRS = Anus of Our Country; NY AG Schneiderman Takes Issues With Shifty Shift Practices; Rank and File: Airlines Get Graded

How am I supposed to live without you?

Image courtesy of hywards/FreeDigitalPhotos.net

Image courtesy of hywards/FreeDigitalPhotos.net

With tax day on Wednesday, John Oliver, host of HBO’s Last Week Tonight thoughtfully explained our national aversion to taxes and the IRS: namely, they involve “someone taking our money and math.” To further complicate things and strengthen our aversion, Congress has drastically cut funding to the IRS, causing activity at the agency to come to an almost virtual standstill. Mr. Oliver urged us to redirect our anger, rage and frustration at Congress and not the folks at the IRS who perform “a dangerously boring job.” So what better way to pay tribute to the IRS than to call it the “anus of our country” which is precisely what, crooner Michael Bolton did, on John Oliver’s show, when he sang a not-so-moving ballad that was sort of meant to be a show  “… of reluctant support for their appropriate funding.”  To help taxpayers truly grasp the anus/IRS comparison, Mr. Oliver articulately explained that we should, “Think of our government as a body. The IRS is the anus: It’s nobody’s favorite part, but you need that thing working properly or everything goes to s–t real quick.” Pure poetry.

Oh shift!

Image courtesy of  iosphere/FreeDigitalPhotos.net

Image courtesy of iosphere/FreeDigitalPhotos.net

More than a dozen retailers are getting probed for some shifty shift scheduling practices that are not only downright rude, but according to New York Attorney General Eric Schneiderman, might just be illegal, as well. The practice in question, dubbed”on-call shifts” basically lets hourly wage employees know if they will be working only hours before they need to show up for work. The practice is not cool for so many reasons. First, for many employees, the practice does not give them ample time to make care-giving arrangements for children and and elders in their care. “On-call shifts” also don’t allow for employees to make other arrangements for alternative sources of income.  If an employee reports for work for which they had been scheduled, then according to New York State law, that employee is entitled to be paid for four hours of work at basic minimum wage. Some of the big retailers who were sent letters about their shift scheduling practices include Target, The Gap, Abercrombie & Fitch, J.C. Penney and J. Crew.

Would you like some pretzels with that?

Image courtesy of bplanet/FreeDigitalPhotos.net

Image courtesy of bplanet/FreeDigitalPhotos.net

The 25th annual Airline Quality Report is out and the least shocking observation on it is Virgin America taking the top spot for the third year in a row. If you’ve ever flown Virgin America, and also American Airlines, then you’ll clearly see why Virgin America gets the top spot while American – which merged with US Airways – doesn’t. However, American still managed to snag the number seven spot. A bit high, if you ask me. In fact, I am shocked that American isn’t in last place. Its regionally operated Envoy/American Eagle airline does place last, though. Yikes. The report, which measures airline performance quality, takes into account four major aspects – or as the pros say “core elements”: on-time performance, involuntary denied boardings, mishandled baggage and customer complaints. No doubt, if the AQR measured how travelers were treated, I am certain American/US Airways would have claimed the last spot. In any case, Hawaiian Airlines came in at number. Too bad it doesnt fly anywhere I need to go. Delta took the number three spot, the only large carrier to break into the top four, while some were left scratching their heads over JetBlue’s fourth place ranking, since the airline came in second last year.