UPI NewsTrack Business

1 million Foxconn workers get raises

BEIJING, Feb. 18 (UPI) -- Chinese electronics manufacturer Foxconn Technology Group, under a cloud of worker abuse allegations, said it was giving workers raises up to 25 percent.

Raises would range between 16 percent and 25 percent for workers who produce devices for Apple, Samsung, Nintendo, Sony and other global brands. That would boost wages to about $290 per month for "junior level" workers, double what they earned three years ago, Focus Taiwan News Channel reported Saturday.

The company, which employs about 1 million workers, has raised wages three times since 2010, the year in which a series of worker suicides at a massive production facility in Shenzhen made international headlines.

Fourteen Foxconn workers committed suicide in 2010.

In January, 150 workers threatened to jump off the roof of a factory in Wuhan, China, to protest work conditions, The Daily Telegraph reported.

Foxconn is under investigation by the Fair Labor Association for a broad range of concerns including working conditions and wages. The investigation was requested by Apple, which conducts an annual company review of its supplier facilities.

Postal Service proposes 50 cent stamp

WASHINGTON, Feb. 18 (UPI) -- The U.S. Postal Service said it lost $3.3 billion October through December and recommended a 50 cent first-class stamp to improve its finances.

The agency said it would likely lose $18 billion in the next three years if steps were not taken to address the financial hemorrhaging, CNNMoney reported.

In its most recent financial plan submitted to Congress, besides adding a nickel to the cost of a stamp, the Postal Service recycled some familiar ideas, including closing thousands of facilities, shaving home delivery from six to five days a week and adding a day to its delivery schedule.

The plan also calls for cutting 155,000 jobs, mostly through attrition.

"The plan we have developed requires a combination of aggressive cost reduction, rethinking the way we manage our healthcare costs, and comprehensive legislation to reform the business model of the Postal Service," said Postmaster General Patrick Donahoe.

But the National Association of Letter Carriers said $3.1 billion of the $3.3 billion in losses in the final quarter of 2011 came from a law that requires the service to pre-fund health benefits for future retirees.

In addition, "charging more for reduced service is not a rational plan for any business, including the U.S. Postal Service," said Fredric Rolando, president of the National Association of Letter Carriers.

White House predicts 2M new jobs in 2012

WASHINGTON, Feb. 18 (UPI) -- The annual White House economic forecast sent to Congress says the U.S. employment picture will improve slightly in 2012.

In 2012, the economy is expected to add 2 million jobs, which is an average of 167,000 per month, the White House said.

In 2011, the economy gained 1.8 million jobs, an average of 150,000 jobs per month.

The Hill newspaper reported Saturday that the White House report says some of the figures are "outdated," such as the projection of 3 percent gross domestic product growth for 2012, which was predicted last fall.

The White House has also not revised its forecast of the unemployment rate, which it said on Nov. 15 would drop from an average of 8.9 percent in 2012 to an average of 8.6 percent in 2013.

The report said the White House may update its unemployment figures in mid-year.

The unemployment rate, which is revised on the first Friday of each month, fell from 8.5 percent in December to 8.3 percent in January.

Radio ad revenue rose in 2011

LOS ANGELES, Feb. 18 (UPI) -- Advertising revenue taken in by U.S. radio stations in 2011 grew to $17.4 billion, an industry trade group said.

Revenue rose by 1 percent over 2010 and grew for the second consecutive year, the Radio Advertising Bureau said.

The Hollywood Reporter said Saturday that radio stations are predicted to take in 7 percent of the $5.6 billion in political advertising that is expected to be spent during the 2012 election cycle.

A trade group spokesman said the radio industry earned about $200 million for political ads run in 2011.

But the biggest winner for radio advertising came from the automotive industry, which spent $2 billion in 2011 for radio air time. Second on the list of advertisers was the television industry, which spent $1.4 billion on radio ads in 2011, up 6 percent from 2010.

The biggest company spenders in the year were AT&T, McDonald's and Comcast, the Reporter said.