RoguePundit

Lawsuit Over Dell Call-Centers Grows

Dell closed its call center in Roseburg last year, just a few months after two employees sued over claims of unpaid overtime.  That lawsuit now has class action status.

Telephone sales representatives who worked at Dell computer call centers in five states are eligible to join in a lawsuit filed by two of the company’s former Roseburg employees, according to a ruling by a U.S. District Court judge in Eugene.

U.S. Magistrate Thomas Coffin certified the lawsuit filed by David Norman and Walter Romas as a class action last week. As many as 5,000 Dell employees who worked for the company since Feb. 8, 2004, could petition the court to join in the suit.

Norman and Romas claim they weren’t paid for all of their hours spent on the clock and that they were shorted for overtime compensation. They seek an undisclosed amount in back wages, penalties and attorney fees.

The two men claimed they had to attend daily company meetings known as “huddles” that lasted 20 to 30 minutes, but for which they weren’t paid. Likewise, they turned on their computers and loaded programs, reviewed product memos and responded to e-mails before they were allowed to clock in. They also performed other duties after going off the clock at the end of their shifts, the lawsuit alleges.

Workers were regularly denied an hour break for lunch, yet had one hour automatically deducted from their work hours for the meal break, according to court documents. Some workers also responded to e-mails from customers from home but were not paid for that time, court filings allege.

At least 80 of the 212 employees who've asked to join the lawsuit worked in the Roseburg call center, which employed 350.  The lawsuit is only open to certain workers; for instance, part-time employees have to sue individually.  And there was this eye-opening factoid...

In court documents, the company reported the turnover among telephone sales representatives nationwide averaged 65 percent per year.

I wonder if any of that turnover is related to the reasons behind Dell recently losing the following lawsuit (from an Office of the New York State Attorney General press release).

State Supreme Court Justice Joseph C. Teresi, of Albany County, ruled today that Dell and (Dell Financial Services) engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices.

...

...“Dell has engaged in repeated misleading, deceptive and unlawful business conduct, including false and deceptive advertising of financing promotions and the terms of warranties, fraudulent, misleading and deceptive practices in credit financing and failure to provide warranty service and rebates.”

In other words, bait and switch.  And when it came to tech support provided under warranty or a service contract...

• Repeatedly failing to provide timely onsite repair to consumers who purchased service contracts promising “onsite” and expedited service;

• Pressuring consumers, including those who purchased service contracts promising “onsite” repair, to remove the external cover of their computer and remove, reinstall, and manipulate hardware components;

• Discouraging consumers from seeking technical support; those who called Dell’s toll free number were subjected to long wait times, repeated transfers, and frequent disconnections; and

• Failing to provide rebates that were promised to consumers.

Dell used to be a lot better.

Fishing Subsidies

The EU's fishermen wield political power well beyond their numbers.  Little wonder they benefit from generous subsidies, gifted by politicians who are essentially paying them to stay quiet.  Recently however, rising marine diesel prices and concerns over quotas have them protesting, sometimes violently.  The Economist offered an interesting editorial on the topic last week.  Here's a sample.

Here are some things that EU fisheries ministers lack the courage to say in public. There are fewer boats now, but that does not mean fishermen are heading for extinction. Today's boats are more capable, with better engines, hull designs, nets and electronic gadgets that lead them straight to the fish. A rule of thumb says there is 2% “technology creep” a year. Even if fish stocks were stable (which they are not), Europe would need to scrap many boats every year to maintain a sustainable industry.

Instead, it has done the opposite, propping up fleets that are anywhere from 20% to 60% too large. And too many governments have then tried to square this circle by lobbying for higher quotas. This has locked fishermen in a suicidal spiral. Decades of falling catches have induced them to travel farther to fill their holds: one reason why Spanish skippers hate expensive fuel is that so many sail way beyond EU waters.

Note that fishermen in the EU get their diesel tax-free.   

More fuel is being used by fleets all round the world, and falling fish stocks are “the major driver”, says Peter Tyedmers, an economist at Dalhousie University in Canada. Nova Scotian fishing records stretching back to the 1930s show that today's boats burn over four times more fuel to catch a tonne of fish, despite having far more efficient engines. Most of the fisheries that he has studied are burning more fuel than 50 years ago.

Availability matters. Herring fishermen in Canada may use only 30 litres of fuel to catch a tonne of fish, because they can throw their nets nearer to home (a practice so cheap that herring is used as lobster bait). European herring fishermen burn 100 litres a tonne, even when using the same (highly fuel-efficient) technique of throwing a purse seine net round a school of fish. Fishing methods matter, too. It takes lots of fuel to pull a heavy net behind a trawler, or tow long lines with hooks for prey like tuna: figures of 3,000 litres of fuel per tonne of fish are common.

In other words, 1 gallon of fuel for every 2.78 pounds of fish.   

Many European fleets are shaped by business choices made when diesel was cheap. The biggest supertrawlers can be crewed by only 20 men: essentially they have substituted fuel for labour. The Netherlands has some of the world's most efficient trawlers for flatfish, in terms of tonnes caught per vessel in a day—but they drink fuel at a fearsome rate. Yet unlike the French or Spanish fishermen who demand fuel subsidies, Dutch fishermen know such aid is not on the table, says Albert Vermue, director of fisheries for the Dutch government. “Subsidising fuel does not tackle the root of the problem,” he says. Instead, fishermen must find different ways to catch fish.

The fuel subsidy being demanded is a 40 percent reduction in cost.  Plus, they want higher quotas and protection from cheaper imports.  A suicidal spiral indeed, for the fishermen and the fisheries.

Flooding and Biofuels

The flooding in parts of the Midwest isn't doing good things to some of our nation's anticipated harvests, especially corn and soybeans.  From this link...

Corn prices have shot up 11 percent in the last week as floodwaters continue to ravage the Midwest, swallowing corn fields just before the crucial growing season. The U.S. government will report June 30 on how many acres have been lost to flooding, but a survey in Farm Futures magazine estimated that flooding could claim 3.3 million acres — or nearly 4 percent of the expected crop.

...

The floods have also inundated soybean fields, pushing prices near all-time highs. Soybeans for July delivery jumped as high as $15.93 a bushel on the CBOT — just shy of the record $15.96 a bushel — before dropping back to $15.38, down 22 cents.

Plus just for corn, there are another estimated two million acres which haven't been planted.  It's already past the recommended window in Iowa. 

The flooding is also having an impact on biofuels production.   

An estimated 300 million gallons of Iowa's 2.2 billion gallon ethanol production is currently offline due to flood conditions in the state, the Iowa Renewable Fuels Association reported. If predictions of river cresting into early this week prove correct that number could grow to over 400 million gallons. "Even as the rivers receded, based upon the reports we've received, it could likely be some time before production can return to normal levels," IRFA said. Ethanol plant shutdowns have reduced corn demand by more than 300,000 bushels per day.

No ethanol or biodiesel refinery has reported a disruption of feedstock supply that will impact operations. Several livestock processors, who supply animal fats for biodiesel production, have shut down. "While there has been no impact on feedstock supply yet, this situation will be monitored," IRFA said. Operating plants are reporting a significant spike in orders for distillers grains. It is likely that interstate shipping disruptions of feed products combined with some corn processing plant closings in Iowa has increased the Iowa demand for distillers grains.

Given the inherent flexibility of biofuels distribution (rail, truck, barge), no plants have reported an inability to ship fuel to destination markets. However, railroad operations have been greatly impacted by the flooding. Delays are widespread. At least one bridge has collapsed on a rail line that services several ethanol plants. Also, many highways and I-80 have been/will be closed. These are serious challenges and will impact shipping routes and duration. "At this time, however, we do not expect any significant supply disruption to end markets," IRFA stated.

No mention of the glut in production capacity.

283 Jobs Suddenly Available (Updated)

The Sun Valley Group has grown from its humble beginnings as a flower farm in Myrtle Point OR to an international grower and wholesaler of bulbs and cut flowers.  Its headquarters and biggest operation are now in Arcata CA.  Several years ago, Sun Valley started saving money by outsourcing some of its labor to illegal aliens.  That wasn't a particularly risky strategy until recently.

Sun Valley Floral Farms terminated 283 employees Monday after a letter from Immigration and Customs Enforcement informed them that the workers are not eligible to work in the United States because their employment numbers are incorrect.

The cuts represent more than half of the company's workforce, according to Sun Valley Group CEO Lane DeVries.

”It's like a neutron bomb hitting our company,” DeVries said. “Some of these people worked with us for 17 years. Some were team leaders for 10 or 12 years. This is very devastating to the people involved.”

The action from ICE likely stems from investigations and raids that took place nearly one year ago this week, resulting in the deportation of many immigrants.

DeVries said Sun Valley's employment records were searched at that time, and approximately seven months ago, they were asked to submit I-9 tax forms. They hadn't heard anything further until last week.

Why does this process take ICE nearly a year?  And what the heck were the company and the workers in question doing over the last year but crossing their fingers and hoping?  

In a company-wide meeting Monday afternoon, DeVries explained the situation to his employees and handed out final paychecks to the terminated workers, along with letters informing them that their numbers are incorrect.

”It was a very somber meeting,” he said.

Sun Valley is by no means the only business on the North Coast to employ immigrant labor, and DeVries feels that large-scale crackdowns like this one could damage the local economy.

”A large portion of the workforce (in Humboldt County) is made up of these fine, fine people,” he said. “They're hard workers; their kids are attending schools; they go to church on Sundays. This is very devastating to the people involved. This is a bad deal.”

The immigrants rolled the dice when they came here, and the company rolled the dice when it hired them.  The blame lies with them, not the folks who finally enforced the law.        

The layoffs have left the company desperate for workers.

”We need people in the worst possible way,” DeVries said. “It makes for a very, very tough situation. This has to be one of the darkest days in the history of our company.”

In April, the unemployment rate in Humboldt County was 6.4 percent...and Arcata is a college town.  The unemployment rates in neighboring Del Norte and Trinity Counties were 7.9 percent and 12.8 percent, respectively.  

Update:  From an article in the Eureka Reporter...

(ICE public affairs spokesperson) Reilly said that ICE focuses on ensuring that employers are complying with immigration laws by conducting inspections like the one that occurred at Sun Valley Floral. “We go to employers routinely to do I-9 inspections,” she explained. If it is found that employee’s numbers aren’t matching up to the proper identification, ICE takes the next step — which Reilly said entails “usually some kind of a notice that is sent out that says ‘you have irregularities in your I-9’s.’”

In addition, Reilly said that the Internet-based “E-Verify” system is in place at this link that employers can use to electronically verify the employment eligibility of their newly hired employees.

Operated by the Department of Homeland Security in partnership with the Social Security Administration, Reilly said “E-Verify can tell you if (employees) are using fraudulent numbers. They’re even getting to the point where there are pictures involved as well, because fraudulent ID’s are a nuisance.”

The ICE Web site states that U.S. Immigration and Customs Enforcement has “significantly enhanced its efforts to combat the unlawful employment of illegal aliens in the United States,” and, compared to the civil fines on employers of the past, today’s standards are much stronger.

“Today, ICE relies heavily on criminal prosecutions and the seizure of company assets to gain compliance from businesses that violate the employment provisions of our nation’s immigration laws,” the site states.

In other words, Sun Valley is hoping that these firings will be enough punishment. 

A Big Boost in Salary

The Petaluma Fire Department protects about about 70,000 people over 160 square miles in southern Sonoma County.  Yes, wine country is very expensive.  Still...

An Oregon firefighter with nearly 30 years of experience was named Petaluma's new fire chief Thursday.

Larry Anderson, deputy chief in Medford, will take over July 14 for Fire Chief Chris Albertson, who is retiring.

Anderson will be paid a salary, not including benefits, of $153,000, City Manager John C. Brown said. Anderson will oversee a department of 46 employees. 

$153K plus benefits?  That's about what the fire chief in Dallas TX makes.  Seattle--$174K.  Meanwhile in Silicon Valley...

San Jose's highest-paid employee last year wasn't the city's top manager, lawyer or doctor. The mayor and city council? Not even close.

The highest-paid worker was a fire battalion chief. Ivan Lee earned a total of $270,367, including $125,195 in base pay, an eye-popping $108,116 in overtime and $37,055 in other cash compensation, such as back pay from a labor contract settlement.

Three other battalion chiefs were among the city's 10 highest-paid workers in 2007, with total cash compensation - excluding benefits - of up to $244,847.

The latest figures, requested by the Mercury News, come amid a heated City Hall debate over employee pay and benefits. Personnel costs account for two-thirds of the city's operating budget, which has been plagued by multimillion-dollar deficits.

And salaries have grown 38 percent since 2000, almost twice the cost of living increase reflected in the consumer price index. Mayor Chuck Reed has called for smaller raises, angering city unions.

...

In Oakland and San Francisco, overtime helped high-ranking firefighters earn about as much as Lee and put them at or near the top of the pay lists for those cities. Even smaller local cities like Mountain View have firefighters making $200,000 or more thanks to overtime. 

Vallejo, a city of 117,000 in the Bay Area, recently filed for bankruptcy protection.  From this link...

Vallejo's main financial difficulty is high spending on public safety employees, whose costs eat up three-quarters of the city's general fund.

Although the city reached a deal with employees in February for pay cuts and other short-term measures to keep paying bills, the city council said earlier this month that filing for bankruptcy might give it more leverage in talks with workers on wages and benefits.

All the weak economy did was hasten the demise. 

Vallejo is broke, and other cities and counties may be close behind, because their personnel costs--salary and benefits for current employees and retirees--are higher than they can afford.

While decisions at the state level are partly to blame, ultimate responsibility for the mismatch of revenue and expenses rests with local elected officials. Meeting in secret, they have managed to avoid public discussion of the true cost and fiscal impact of the pay deals they have approved.

If no one is watching, it's easy for public officials to give generous pay and benefit increases without having a clue how to pay for them. That's not so easy to do in a public session, where voters demand to know how much taxes will have to be raised, and how much other expenses cut, in order to make good on the promised increases in compensation.

It's no secret that government unions are some of our most powerful special interest groups.  You don't hear many politicians offering to stand up to them.

Free Trade Aid

Japan has long set high trade barriers to protect its rice production.  From this link...

The United States led an international effort by rice-exporting nations in the 1980s and early 1990s to insist that Japan begin allowing rice imports. Japan finally agreed to buy nearly 700,000 tons a year, as part of the 1993 global pact that created the World Trade Organization.

But Japan has put much of the imported rice in warehouses at an annual cost to the government of $144 million, according to the United States Department of Agriculture.

Well, at least it's not going to go to waste. 

Japan is preparing to send at least 220,000 tons of rice to the Philippines, and possibly Africa. The Japanese government says the plan is meant to ease the suffering of poor nations punished by rising rice prices.

But critics, including some in Washington, worry that it could set a precedent for Japan to dump foreign rice it was obligated to import but had never wanted. They say that the Japanese plan risks setting off a trade dispute with the United States — and may barely dent the price of rice.

Yet opposing the Japanese plan could put the United States in a delicate diplomatic position. The price of rice, the most important staple food of the world's poor, has risen faster than any other cereal, nearly tripling this year alone, according to rice traders. The high prices have caused protests in many countries and, according to World Bank officials, pushed 100 million people back into poverty.

It's to be determined how much of the rice will be donated versus sold.  Japan does donate small amounts of rice to other nations each year.  FYI, 220,000 tons is less that one percent of the total amount of rice traded globally each year.

Separately, experts in international development warn that shipments of free or subsidized food hurt farmers in developing countries, robbing them of their customer base and making the country dependent on foreign food.

...

Only a small amount of the imported rice has been sold to Japanese consumers, allowing rice prices in Japan to remain four times higher than the world average. "We look forward to having discussions with the Japanese on Friday to discuss this issue further and learn exactly what they plan on doing with the rice," said Gretchen Hamel, a spokeswoman for the United States Trade Representative's office, adding that the Americans would be supportive of any "food price crisis efforts."

Blocking the shipment through diplomatic appeals to the Japanese government or through litigation at the WTO could make the United States appear indifferent to hunger and poverty.

Protesting that the shipments will hurt local farmers could be difficult because the United States is already one of the world's largest donors of free food to poor countries. President George W. Bush is trying to shift part of these donations to cash instead for the purchase of food from local farmers, but American farm and shipping lobbyists have urged Congress to prevent such a shift.

We need to help our economy at the expense of farmers in nations we're trying to help?  Of course, when it comes to foreign aid reaching the people it's designed to help, cash donations are even more likely to be diverted than food aid. 

Lawyers at the WTO's headquarters have been arguing strenuously this week over whether Japan can re-export rice, and have not come to a consensus. The WTO declined to comment on the Japanese plan.

Treaties so often say different things to different people. 

Trying Not to Subsidize Fortress

Most railroads embrace so-called public-private partnerships when they're looking for the government to subsidize capital-intensive efforts like major upgrades and repairs.  RailAmerica's efforts to get Oregon to pay for repairs to the Coos Bay Line have seemed more like extortion (previous blog here).  The closing of that line has hurt several businesses in the region and looms over a potential expansion of port operations in Coos Bay...the cargo from which would likely make RailAmerica a lot of money.  Here's the latest.

Members of the Surface Transportation Board contend RailAmerica should never have purchased the spur line between Coquille and Eugene if it wasn't in a position to maintain the 136-mile line.

Board member Charles "Chip" Nottingham on Friday told Paul Lundberg, a RailAmerica vice president, that the company wants the state of Oregon, shippers and other stakeholders to bail out the company when it knew the condition of a series of tunnels and tracks when it bought Roseburg-based Central Oregon & Pacific Railroad (CORP) a few years ago.

"You bought the line of your own volition, voluntarily — caveat emptor (let the buyer beware) — and then when there's a problem, you want others to pay and when they say 'no,' we see no progress (on reopening the line)," Nottingham said during the second day of hearings on the matter in Washington, D.C.

A day earlier, U.S. Sens. Ron Wyden and Gordon Smith and Rep. Peter DeFazio blasted the company for its failure to reopen the line that was closed last September because of safety problems in a series of tunnels.

The safety problems are real, but the problems have been festering for some time. 

Lundberg said RailAmerica had worked hard to come up with a solution that would allow repairs to be made and reopen the line. He said the company, which during the past four years had spent 40 percent of its gross revenues from the Coos Bay line on capital expenditures, could not afford to pay by itself the $7 million needed to repair the tunnels.

Lundberg said he was surprised the state of Oregon and other stakeholders were unwilling to help fund the repairs, insisting instead that the railroad reopen the line before any negotiations took place.

"Quite frankly, I'm quite disappointed and surprised that they've had the reaction that they've had. Because it seems that it is in the public interest — that the state of Oregon and the governor and two senators and Congressman DeFazio have stated that this is very important to them — but they don’t seem willing to give us consideration to ways to do it," Lundberg said.

During the past five years, RailAmerica has spent $300 million on infrastructure improvements on its 43 lines across the country. Of that, $44 million was spent on the CORP lines. This year, $60 million has been budgeted companywide, he said.

RailAmerica continues to conveniently omit the fact that it's owned by the Fortress Investment Group.  Fortress manages $33.2 billion in assets and had revenues last year of $1.1 billion.  The quarterly dividend it pays dwarfs the amount of money needed to repair and reopen the Coos Bay Line. 

Fortress is in the business of buying, streamlining, and selling companies for profit.  It finished its purchase of RailAmerica seven months before the Coos Bay Line was closed.  If the government subsidizes the repair of that line, Fortress will be able to sell RailAmerica for more money...and it's not offering to share the profits.  Notice also how RailAmerica's proposed spending on infrastructure improvement isn't keeping up with inflation. $300 million over 5 years is $60 million per year, the same amount that's budgeted for this year.   

He said the railroad was hurt when a major shipper, a Coos County sawmill, closed in 2004. Traffic on the line decreased from 7,500 carloads a year to 5,000.

"For a short line, that is a huge body blow," Lundberg said.

Lundberg told the board that without a public-private partnership or some other solution, the preservation of the Coos Bay line was in "serious doubt."

Nottingham, who said he was troubled by earlier comments by RailAmerica officials that there was not enough business on the line to justify keeping it open, said the company needs to make a decision.

"We need to see some progress on your part or, make up your mind and let the process play out if you truly don’t want to be a part of the future of that landscape," Nottingham said.

If the government is going to foot the bill for the repairs, who needs Fortress and RailAmerica?  Let the Port or the State have the line and outsource the operations. 

Asparagus Protectionism

I've blogged on multiple occasions (example here) about how low-cost Peruvian asparagus has undercut our nation's producers.  Over half of the asparagus consumed in the U.S. now comes from Peru, and we import a fair amount from Mexico as well.  In 2005, California grew about 80 percent of the asparagus in the U.S., most of it being sold fresh.  However, the industry there is shrinking rapidly...and it's blaming free trade.

California asparagus growers are struggling to hold on to what's left of their 2008 season.

After a flood of Mexican asparagus sank their Easter market, growers in the San Joaquin Delta are hoping favorable weather lasts long enough in the next few weeks to recover losses before the crop in Washington state hits full stride.

It has been a season of discontent for Stockton growers like Mark Bacchetti of Prima Bella Produce. The main problem, they say, is the North American Free Trade Agreement, which has given Mexico free reign to capture more of the U.S. asparagus market. Bacchetti said NAFTA has made Mexico a major force in the asparagus market in the past eight years.

"They are pretty much up to 27,000 acres, which is what we were 10 years ago, and they are actually oversupplying their own market now," Bacchetti said. "They start in January and are in full production in February, and when we start at the end of February, they have already saturated that market. Any production that California throws on just tanks it, so we come out of the chute just tanked."

The Andean Trade Preferences Act gave Peru tariff-free access to the U.S. asparagus market in 1991.  Irrigation of coastal desert with a mild climate enables Peru to harvest asparagus year-round, something no other major producer can do.  Add state-of-the-art packing facilities and air transport, and Peru quickly became a major player.  Modern agricultural methods are giving Mexican producers a similar--though seasonal--boost.

"The Central California asparagus window is like this now," Bacchetti said, using his thumb and forefinger to describe the narrow marketing window that growers like him have. While prices have strengthened in recent weeks, for most of the early season, Bacchetti said, they hovered in the $28-$30 range for a 28-pound crate, about the same price growers received 20 years ago.

The fortunes of California asparagus growers can be seen in the slide in harvested acreage in the state. This year's intended acreage for harvest is forecast at 16,600, down 17 percent from last year, according to USDA data. Four years ago, harvested acreage was 34,000 acres. More than 40 percent of the state's total crop comes from San Joaquin County, according to state data.

Marc Marchini, of A.M. Farms and chairman of the California Asparagus Commission, said Mexico has "decimated" the early market. Many longtime asparagus growers are either planting other crops or quitting farming altogether. With fewer growers in the industry, the commission has fewer dollars for promotion. Another problem is retail stores do not actively promote the California product.

So, why don't California's growers use something like a labeled rubber band that proudly says where the asparagus is from?  Yes, the growers support country-of-origin labeling.

The marketing window mentioned above closes (so to speak) when the asparagus harvest in Washington harvest begins.  But as I've blogged before, the asparagus industry there has also been badly hurt; all three of its canneries have closed, and it's now under 7,000 harvested acres of asparagus. 

"We get slammed at certain times of the year on Mexican product that comes in," said Watte (executive director for the California Asparagus Commission). The industry believes product is being dumped to the detriment of California growers, but current anti-dumping rules require the effects to the entire U.S. industry to be taken into account.

"We're the only ones in production during that time," she said. "We're only looking at a two-week period, so we're looking to change the rules with other like-minded commodity groups as it pertains to seasonal and perishable commodities."

As their 2008 season winds down in the next few weeks, at least weather for most of April cooperated for San Joaquin Delta growers.

"This cool weather has been kind of nice. It's keeping us going," John Bacchetti of Del Terra Farms said of the unseasonably cool temperatures. Despite a very dry March, asparagus beds still have adequate moisture to produce new spears, but the downside is the crop doesn't grow very fast, he said.

I'm going to harvest my first asparagus spears tomorrow.  With as cool as it's been, they may be a bit tough...but I'm sure I'll manage. 

Protectionism and Beef Sales in South Korea

Last Friday, South Korea agreed to lift its restrictions on the importation of U.S. beef.  It's the latest gambit in the ongoing negotiations over a free trade agreement.

South Korea’s agreement with the U.S. to open its market to U.S. beef products from cattle of all ages is outstanding news for the U.S. beef industry and for South Korean consumers, said Philip M. Seng, president and chief executive officer of the U.S. Meat Export Federation.

"Our industry has lost between $3.5 billion and $4 billion in beef exports to South Korea since the end of 2003," he said. "And we know that there is a significant demand there for quality U.S. beef that has not been satisfied for more than four years."

What?  When the U.S. suffered its first case of mad cow disease, South Korea--then our third biggest beef customer--cut off imports.  Australia, which has never suffered a case of bovine spongiform encephalopathy, eagerly stepped in to fill most of the void.  It now provides nearly three-quarters of South Korea's beef imports. 

South Koreans have been pleased overall with Australian beef, while they've been unhappy with our quality control since limited imports have been resumed (previous blog here).  Demand last year for U.S. beef rebounded to only about half the previous levels.

According to the agreement, the import protocol agreed upon with the South Korean government will allow U.S. beef and beef products from cattle of all ages, which is consistent with World Animal Health Organization (OIE) guidelines and prevailing international standards.

During the last four years, the U.S. beef industry has suffered greatly from lost trade with South Korea. In 2003, the United States exported 543.6 million pounds of beef and beef variety meats to South Korea, according to U.S. Department of Agriculture statistics. However, in 2007 the U.S. exported more than 10 times less this amount ― an estimated 53.4 million pounds valued at $117.3 million, although shipments were limited to boneless beef from cattle under 30 months of age and the market was only open for an intermittent five months during the year.

"While this is momentous news for the U.S. beef industry, it also clears one of the major obstacles to the approval of a formal free-trade agreement between our two nations," said Mr. Seng.

That last point is key.  Switching links...

The agreement comes just hours before South Korean President Lee Myung-bak, in the United States on his first overseas trip since taking office in February, meets U.S. President George W. Bush at the Camp David presidential retreat.

U.S. lawmakers have said a landmark trade pact the two countries struck about a year ago would be scuttled unless South Korea opened its market fully to U.S. beef.

Analysts have estimated the trade deal, which needs approval by legislatures in both countries, could boost their two-way, $78 billion annual trade by about $20 billion.

That proposed free trade agreement (FTA) would eliminate the 40 percent tariff that South Korea assesses on U.S. beef imports.  Our beef would then enjoy a price advantage over Australian beef, which is also subject to the tariff.  Bargain shopping (excuse me, pent-up demand) would then drive increased sales of American beef in South Korea. 

However, even with South Korea compromising on beef imports, there's no guarantee that Congress will pass the proposed FTA.  As the debate over the Colombian agreement has shown, protectionism is rather popular at the moment.  If Congress backs away from the proposed FTA with South Korea, it would end up protecting the Australian beef industry at the expense of ours.

FYI, Australia is in the early stages of negotiating a free trade agreement with South Korea. 

Stealing Some Rather Special Plaques

It's amazing what people will steal and sell as scrap metal...and what some scrap dealers will buy.   

(Last) week, a particularly audacious bandit apparently made off with over 1,000 bronze plaques from the Holocaust memorial Theresienstadt just outside of Prague. The plaques were emblazoned with the names of prisoners who died at the Nazi concentration camp there--and Czech police said this week that many of them had been discovered at a scrap yard in northern Czech Republic.

The theft, said Czech Culture Minister Vaclav Jehlicka, "has disgraced the memory of World War II victims irrespective of whether it was committed on the basis of a pervert ideology or purely for gain of money." Damage is estimated to be about 1 million koruna, or about €40,000 ($63,600).

Jehlicka said that the plaques would be replaced, but that the new tablets would be made of resin instead of bronze, a copper alloy. The remaining bronze plates, he said, would likewise be replaced at a cost of several million koruna.

The memorial is now being guarded, and a project is being drawn up to provide additional protection, including camera monitoring. 

The theft comes at a time when rising scrap metal prices have resulted in a spate of scrap metal thefts, with copper being high on the list. One hundred kilograms of copper brings in €430 on the scrap market, leading to a number of churches in Germany and Europe having their roofs and gutters stolen. A number of bronze vases and candelabras went missing from a Berlin graveyard recently and a Cologne cemetery lost 16 Madonna statues made of metal.

...

Theresienstadt, known as Terezin in Czech, has indicated that the plaques are not likely to be replaced before the May 18 annual commemoration of Nazi victims there. During World War II, the camp at Theresienstadt served as a collection point for Jews from where they were deported to death camps further east. A fortress nearby served as a Gestapo prison.

Police haven't caught the perpetrator(s), who could face up to eight years in prison.