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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.
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Business News

Last Update on July 29, 2014 17:09 GMT

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WASHINGTON (AP) -- U.S. consumers are more confident about the economy than they have been in nearly seven years.

The Conference Board's confidence index rose to 90.9 in July from an upwardly revised 86.4 in June. The July reading is the highest since October 2007, two months before the Great Recession officially began.

It was the third straight increase in the index. Economists said that strong job growth has helped boost consumers' assessment of current conditions and also improved their outlook on jobs and the economy.

Conference Board economist Lynn Franco says that the improvements in consumers' confidence and expectations about the future indicate that the recent strengthening in overall economic growth should continue in the second half of the year.

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WASHINGTON (AP) -- U.S. home prices rose in May from a year earlier, but at the weakest pace in 15 months.

The Standard & Poor's/Case-Shiller 20-city home price index increased 9.3 percent in May from 12 months earlier. That's down from 10.8 percent in the previous month and the smallest annual gain since February 2013.

Yearly price gains slowed in 18 of the 20 cities. They accelerated in Charlotte, N.C., and were flat in Tampa, Fla.

Existing home sales have picked up, rising to an eight-month high in June. But they are still 2.3 percent below last year's level. And an index of signed contracts dipped in June, suggesting sales will cool.

Home sales have been restrained by weak wage gains and tight credit, particularly for first time buyers.

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NEW YORK (AP) -- Pfizer's second-quarter earnings plunged 79 percent from last year, when the world's second-largest drugmaker booked a business spinoff gain of more than $10 billion. The latest results still edged analyst expectations.

Pfizer says it earned $2.91 billion in the quarter. That compares with earnings of $14.1 billion last year.

Revenue slipped 2 percent to $12.77 billion, while analysts forecast $12.47 billion, on average.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, the Prevnar vaccine against pneumonia and related infections and the now-generic cholesterol fighter Lipitor, which was once the world's best-selling drug.

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UNDATED (AP) -- A big one-time gain and a tax benefit have helped drugmaker Merck more than double its second-quarter profit, raise the lower end of its profit forecast and easily top analysts' expectations.

The maker of popular Type 2 diabetes pill Januvia and cholesterol medicines Vytorin and Zetia says net income increased to $2 billion from $906 million in the same quarter a year earlier.

The world's fourth-biggest drugmaker reports revenue of $10.93 billion, down 1 percent from $11.01 billion a year ago.

Sales of Merck's prescription drugs totaled $9.09 billion, down 2 percent as cheaper generic competition cut into sales of some older medicines and sales of its hepatitis C drugs was hurt by new brand-name competition.

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ATLANTA (AP) -- UPS is lowering its outlook for the year as it announces plans to spend more on technology and other enhancements to improve service during peak season.

UPS says it will spend $175 million on upgrades that include expanded operations on the day after Thanksgiving and sped-up deployment of software designed to help drivers find the quickest route to a destination.

During last year's holiday season, a big increase in online shopping and a crush of last-minute orders by shoppers who jumped on offers of free shipping caught UPS by surprise. The company was forced to hire extra workers to handle the rush, but some gifts still arrived late.

As a result of the boost to spending, UPS has lowered its full-year outlook for adjusted earnings to $4.90 to $5 a share. It previously expected to earn around $5.05 a share.

UPS also says second-quarter profit declined to $454 million from $1.07 billion in the same quarter a year earlier.

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DETROIT (AP) -- Suzuki is recalling nearly 26,000 midsize cars in the U.S. because the daytime running light modules could overheat and cause a fire.

The recall covers the Verona from the 2004-2006 model years. It's an expansion of an earlier recall of the Forenza and Reno.

All the cars were made by General Motors in Korea. Suzuki says in documents filed today with government safety regulators that a transistor in the modules can overheat in the instrument panel. That could melt the module, which could cause a fire. Suzuki says there were no fires reported in Verona models.

Dealers will replace the modules for free. Owners will be notified later.

American Suzuki Motor Corp. filed for Chapter 11 bankruptcy protection in November of 2012 and stopped selling automobiles in the U.S.

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BEIJING (AP) -- China's anti-monopoly agency says it's investigating Microsoft, stepping up regulatory pressure on foreign technology companies.

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Foreign technology suppliers face growing pressure from Chinese regulators, who have launched anti-monopoly investigations and announced plans to examine products for security flaws.

Microsoft has not responded to a request for comment.

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New York Attorney General Eric Schneiderman says deceptive practices by Rome Finance Co. included failing to accurately disclose charges and interest rates and helping retailers inflate prices, with repayments take from soldiers' paychecks.

Rome Finance has recently done business as Colfax Capital Corp. and Culver Capital LLC.

The states involved are Colorado, Delaware, Florida, Georgia, Kentucky, Indiana, Iowa, Massachusetts, Michigan, New York, North Carolina, Tennessee and Vermont.

Authorities say military personnel will keep financed merchandise like computers and gaming systems with debt forgiven, including $2.2 million for more than 550 New York residents.

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