[an error occurred while processing this directive]

I-Team Follow-Up: Battle Creek back pay

Updated: Saturday, August 3, 2013 |
I-Team Follow-Up: Battle Creek back pay story image
BATTLE CREEK, Mich. (NEWSCHANNEL 3) - In a Newschannel 3 I-Team investigation, we revealed that after months of investigation, the Department of Labor found the City of Battle Creek owes its firefighters hundreds of thousands of dollars.

The controversy surrounds two years of inappropriately paid overtime.

But union leaders contend that the city owes even more than that, and that if the city doesn't make it right, it's in for a fight.

Union leaders have also told Newschannel 3 they have started the grievance process, and beyond union action, Battle Creek could be opening itself up to a class-action lawsuit by any and all of its employees who have been compensated incorrectly.

Leaders in multiple city departments have told Newschannel 3 that they believe the city could be on the hook for $1 to $2 million in back pay before the investigation and its fallout are through.

But City Manager Ken Tsuchiyama disagrees, and says that the payout won't be anywhere near that.

"The union went to the city several years ago, to make them aware of the violations. We tried to address some of the issues through the negotiation process." said Captain Chris Love, the Union President with Battle Creek Fire.

Love says that negotiations failed and now the grievances "are able to reach back much farther than what D.O.L. mandates."

He also claims that the union informed the city that the issue has been going on since 1989.

Thanks to the Department of Labor's finding, Love says, Battle Creek Fire can now file for breach of contract, which may entitle the department to six years of back pay--three times as much as the city is on the hook for right now.

In the midst of all of this, the Battle Creek City Commission is being asked to pass the 2013-14 budget, which includes across the board raises for all salaried employees.

Multiple commissioners have already said they will not pass any budget before all of the results of the labor department investigation are in.
comments powered by Disqus
advertisement

What do you want to see?

If you have a story idea for the I-Team, you can contact us using the form below or by calling 269-388-4612.
Please re-enter the code shown in the image below.

Business News

Last Update on August 29, 2014 17:14 GMT

CONSUMER SPENDING

WASHINGTON (AP) -- U.S. consumer spending fell in July, with a drop in auto purchases accounting for most of the weakness. Income growth also slowed in July.

The Commerce Department says consumer spending edged down 0.1 percent last month after a 0.4 percent increase in June. It was the first decline in spending since January. Income growth slowed to a 0.2 percent rise in July, the weakest showing in seven months.

The fall in spending came primarily from a decline in auto sales, which took a breather in July after posting big gains in recent months, although spending in other areas was also weak.

Consumer spending accounts for 70 percent of economic activity, so it needs to recover for the economy to keep its momentum in the second half of the year.

CONSUMER SENTIMENT

WASHINGTON (AP) -- U.S. consumer sentiment ticked up in August, driven by greater optimism about jobs, rising incomes, and increasing wealth. The increase largely occurred among higher-income groups.

The University of Michigan says its index of consumer sentiment rose to 82.5 from 81.8 in July. Still, it has barely risen in the past year.

Consumers have sent mixed signals in recent months. The Michigan index has fluctuated between 80 and 82.5 since December. A measure of consumer confidence by the Conference Board rose this month to nearly a seven-year high. And yet Americans cut back their spending in July.

Nearly 60 percent of households in the top third of income earners say they are financially better off this month, the Michigan survey found, compared with only 36 percent in the bottom two-thirds.

US-FIAT-CHRYSLER

DETROIT (AP) -- U.S. investors should soon be able to buy stock in Chrysler for the first time in seven years.

Italy's Fiat and Chrysler are merging to form Fiat Chrysler Automobiles. Fiat says Friday that an ongoing tally of investors suggests there is not enough opposition to derail the deal.

Earlier this month, Fiat shareholders approved combining the companies. But Italian law gives dissenters the right to cash out. Fiat has said that if investors offered more than 500 million euros ($650 million) in shares, the merger would be off.

Fiat SpA will announce the final tally by Sept. 4. So far the maximum number of shares to be cashed is below the cap.

Shares of Chrysler haven't been publicly traded since 2007 when it was still combined with German automaker Daimler.

REYNOLDS AMERICAN-LORILLARD

RICHMOND, Va. (AP) -- Federal regulators are putting Reynolds American Inc.'s planned $25 billion takeover of rival cigarette maker Lorillard Inc. under the microscope.

The nation's second-biggest tobacco company said Friday that the Federal Trade Commission has asked for additional information as part of an antitrust review of the deal.

In July, Reynolds announced the deal to combine two of the nation's oldest and biggest tobacco companies, creating a formidable No. 2 to rival Altria Group Inc., owner of Philip Morris USA.

Reynolds markets Camel, Pall Mall and Natural American Spirit cigarettes. Lorillard sells Newport, Maverick and Kent cigarettes.

The companies plan to sell the Kool, Salem, Winston, Maverick and blu eCig brands to Imperial Tobacco Group for $7.1 billion to ease regulatory concerns about competition.

HEALTH OVERHAUL-TAX FORMS

WASHINGTON (AP) -- The federal agency that brought you the glitchy HealthCare.gov website has a massive new project.

If the Health and Human Services department has trouble this time, that could delay tax refunds for many people.

Complicated connections between the new health care law and income taxes will start to surface in 2015.

HHS has to send millions of people who got health insurance tax credits this year a new tax form that's like a W-2 for health care. It's called a 1095-A.

If they're delayed beyond Jan. 31, people who got coverage through the new insurance exchanges may have to wait to file their taxes -- and collect their refunds.

Some tax preparation companies are worried.

The Obama administration says it's on task, but won't provide much detail.

EUROPE-ECONOMY

BRUSSELS (AP) -- Inflation has fallen to an annual 0.3 percent in August for the 18 countries that use the euro, underlining the shakiness of the continent's economic recovery.

Eurostat, the EU statistics agency, says the figure is down from 0.4 percent in July, as expected by market analysts.

Core inflation, which excludes volatile food and energy, sent a modestly brighter signal as it rose to 0.9 percent from 0.8 percent.

The eurozone economy showed no growth in the second quarter as fears about the Ukrainian crisis weighed on consumers and investment decisions.

The European Central Bank has warned that inflation expectations are worsening and says it will add more stimulus if needed. Many analysts are predicting the bank will launch large-scale purchases of financial assets to pump more money into the economy.

BRAZIL-ECONOMY

SAO PAULO (AP) -- Brazil's government says the country's gross domestic product contracted 0.6 percent in the second quarter compared with the previous three months, sending the country's economy into a recession.

The government's IBGE statistics bureau said Friday it was the second consecutive quarterly contraction of the economy.

In the first quarter of the year, GDP was reported as having grown 0.2 percent. But that figure was revised downward to minus 0.2 percent.

The IBGE says the country's GDP stands at 1.27 trillion reals ($567 billion).

advertisement