April 24, 2024

U.S. Boss Held in China Leaves Plant After Payout

Chip Starnes, a co-owner of Florida-based Specialty Medical Supplies, told The Associated Press he had been forced to give in to what he called unjustified demands while he was held by about 80 workers inside the factory, an experience he described as “humiliating, embarrassing.”

The workers began blocking all exits from the plant in Huairou district on the outskirts of Beijing on June 21 after seeing equipment being packed for shipment to India and thinking the entire factory was being shut down. They said the company owed them unpaid salary.

At the start of the standoff, the workers deprived Starnes of sleep by shining bright lights and banging on windows of his office, he said.

Police had made no moves to end the standoff but guarded the plant and said they were guaranteeing Starnes’ safety while a labor official was brought in to broker negotiations.

It’s not rare in China for managers to be held by workers demanding back pay or other benefits, often from their Chinese owners. Police are reluctant to intervene, as they consider it a business dispute, and local officials typically are eager to see the matter resolved in a way least likely to fuel unrest.

Starnes, who had spoken to reporters in recent days through the barred window of his factory office, said the workers’ demands were unjustified. Neither he nor district labor official Chu Lixiang gave details of the compensation deal.

Chu said all the workers would be terminated, although Starnes said some would be rehired later.

“It has been resolved to each side’s satisfaction,” Chu told reporters at the plant. She said they had been sorting out paperwork until 5 a.m. and that 97 workers had signed settlement agreements.

Starnes had quietly departed the factory grounds by the time Chu spoke. He wrote in a text message: “Yes!! Out and back at hotel. Showered. 9 pounds lost during the ordeal!!!!!!”

He told the AP he was “saddened” by the experience.

He has said the company had been winding down its plastics division, with plans to move it to Mumbai, India. When he arrived in Beijing last week to lay off the last 30 people, workers in other divisions started demanding similar severance packages.

The deal reached Thursday would also pay those workers, even though the company said they weren’t being laid off.

“We have transferred our funds from the U.S.,” he said. “I am basically free to go when the funds hit the account here of the company.”

Starnes said he planned to get back to business, and even rehire some of the workers who had been holding him.

The labor action reflected growing uneasiness among workers about their jobs amid China’s slowing economic growth and the sense that growing labor costs make the country less attractive for some foreign-owned factories.

Article source: http://www.nytimes.com/aponline/2013/06/27/world/asia/ap-as-china-american-boss-hostage.html?partner=rss&emc=rss

Lance Armstrong’s Confession Could Mean More Legal Trouble

Landis said Armstrong and several team officials from Armstrong’s United States Postal Service cycling team defrauded the government by allowing doping on the squad when the team’s contract with the Postal Service explicitly forbade it.

Armstrong and his lawyers have been negotiating with the government to settle the case, with Armstrong offering a payment of $5 million, while the government is asking for much more than that, said one person with knowledge of the discussions. That person did not want to be identified because the case is under seal.

Tim Herman, one of Armstrong’s lawyers, did not immediately respond to a request for comment late Thursday.

The government asked a judge for an extension Thursday to decide whether to join the case as a plaintiff and was granted it, the person said.

The case could have added significance because of the possible consequences for Thomas Weisel, a major figure in finance and Silicon Valley who sold the firm he ran, Montgomery Securities, for $1.2 billion in 1997.

Weisel was Armstrong’s biggest financial backer as a co-owner of the United States Postal Service Pro Cycling Team through a cycling management firm that he helped found called Tailwind Sports.

If the government decides to join the lawsuit and recovers any money, Landis will be eligible to receive a portion of it.

Before his confession to Oprah Winfrey, which was shown Thursday night, Armstrong had said Landis made up the story of doping on the team.

Armstrong claimed Landis had done so out of spite because he had not been hired by Armstrong after Landis returned from a two-year doping suspension.

Article source: http://www.nytimes.com/2013/01/18/sports/cycling/lance-armstrongs-confession-could-mean-more-legal-trouble.html?partner=rss&emc=rss

You’re the Boss Blog: Business Group Members Talk About Surviving Another Year

She Owns It

Portraits of women entrepreneurs.

Jessica JohnsonSuzanne DeChillo/The New York Times Jessica Johnson

When the members of the She Owns It business group gathered toward the end of 2012, they looked back over the year’s accomplishments and ahead to their goals for 2013.

Susan Parker, who owns Bari Jay, said she was most pleased that her company had gone from being reactive to proactive. “Every year, we seem to learn from our mistakes and try to plan and do things better,” she said. For example, December is typically when Bari Jay starts shipping its dresses for the spring season (there are spring and fall seasons).

Normally, when Christmas rolls around, she said, she worries that shipping may spill over into January and that stores may no longer accept Bari Jay’s dresses. This year, however, Bari Jay shipped most of its dress samples in November. This meant that stores had more time to re-order dresses and also that stores that budget poorly were less likely to run out of money before ordering.

Another group member, Deirdre Lord, who owns the Megawatt Hour, asked how Ms. Parker managed to ship the samples early.

Normally, she responded, she does a schedule for just one season. But this time she made one for the entire year. “We’re just doing things so early, and then when we have problems, which we always do, it’s just giving us …”

“… a cushion,” said Ms. Lord.

Ms. Parker said there were other examples as well. She feels she and her sister, also a co-owner, have improved at planning in general. “I’m not going to say things don’t come up and we don’t have to react to them, but it doesn’t seem as horrible when you’re not reacting to everything on your plate,” she said.

Looking ahead to 2013, Ms. Parker knows she must address problems at her biggest factory, which is in China and continues to have quality issues. At a previous meeting, she told the group that she and her production consultant traveled to the factory in October to attempt to rectify the situation. Still, she continues to lack confidence that the factory has the will to improve. When dresses fail to live up to Bari Jay’s standards, she said, the reaction is, “Your dresses are too complicated, and it’s hard to get skilled workers, so too bad.”

“For a while, we tried to dumb down our designs,” she’d said at the earlier meeting. But sales fell. “I don’t want to make dresses that are cheaper and easier to make if no one wants to buy them.”

For now, she has retained a quality control firm to inspect the dresses in China. But she knows that’s not a long-term fix. “I don’t want to spend thousands and thousands of dollars having people inspect my dresses because the factory can’t make them right,” she said. “I need to get the factory to make them right.”

The factory is a holdover from when her father ran the company, and its performance has steadily declined over the last few years as the effects of the Chinese labor shortage have intensified. While Ms. Parker continues to explore other production options, extracting herself from this factory, which also stocks Bari Jay’s fabric and makes its patterns, will be complicated.

Jessica Johnson, who owns Johnson Security Bureau, said that as “hokey” as it might sound, she viewed surviving another year in business as her biggest accomplishment. Ms. Lord said she felt the same way.

Ms. Johnson explained that she considered it “major” to get up every morning and still want to do her job. “The big victories are really the little victories,” she said, adding that the challenges small-business owners face “would make most people crawl in a corner and just die.”

“Amen, sister,” said Ms. Lord.

“There are many days when nothing seems to go your way,” Ms. Johnson said. As a business owner, she said, you have to come to grips with the fact that, “If this person doesn’t have the right attitude, or this client doesn’t pay me on time, or this project that I’ve been bidding on for six months doesn’t come through, it will be O.K.” And just when you do, she continued, “There’s something else that comes and knocks you upside the head.”

“That’s what it’s like to run a business,” said Beth Shaw, who owns YogaFit.

The big accomplishment, Ms. Johnson said, is “keeping it in perspective and finding the wherewithal to wipe off your knees, put on your smile and do it again the next day.”

Thinking about the coming year, Ms. Johnson said her goal was to continue to grow, but not necessarily at the same pace. She wouldn’t say she wanted to “slow” the pace for fear of jinxing herself, but said she planned to grow the company in a more managed and thoughtful way.

“Security services are really a commodity to most people,” she said. “Nobody’s like, ‘I’m going to have lunch with the security company to figure this out,’” she added. Still, Johnson Security is finding there are exceptions among some of its clients who view their relationship with her company as more of a partnership.

In my next posts, we’ll talk about the goals and accomplishments of the other group members.

You can follow Adriana Gardella on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/01/03/business-group-members-talk-about-surviving-another-year/?partner=rss&emc=rss

DealBook: Norilsk Offers Share Buyback to End Long Dispute

Oleg V. DeripaskaSimon Dawson/Bloomberg NewsOleg V. Deripaska is battling with Vladimir O. Potanin, below, for control of Norilsk Nickel.Vladimir O. PotaninAlexander Natruskin/Reuters

MOSCOW — The management of Russia’s largest mining operator, Norilsk Nickel, offered on Friday to buy most of the shares held by one of the company’s two feuding owners and thus resolve the dispute.

Norilsk generates vast profits as the world’s largest producer of nickel and palladium, and is one of the largest producers of copper, platinum, gold, silver and other rare metals. But the two largest owners, who are members of the rich coterie of industrialists known as oligarchs, have been locked in conflict for years for control.

Oleg V. Deripaska, who also owns about half of the world’s largest aluminum company, Rusal, maintains that his co-owner, Vladimir O. Potanin, is trying to force him out and seize full control of Norilsk.

Mr. Potanin, for his part, says he is encouraging the Norilsk management to buy back shares because the company’s proceeds cannot be invested profitably in other mining ventures in Russia, or indeed elsewhere in the world, right now.

On Friday, the company’s Web site said managers had offered Mr. Deripaska’s Rusal company $8.75 billion for 15 percent of the company’s shares. Rusal now holds about 25 percent.

Norilisk said the offer was equivalent to $306 a share, which was a premium of 20 percent above the average market price of the company over the last six months.

Even before the offer, however, Rusal issued a statement saying it was not likely to accept, and accused Mr. Potanin, who owns about 30 percent of Norilsk, of using his influence on the board to compel the company treasury to buy out a rival. This, Rusal said, was harming the interests of minority shareholders.

Rusal says it does not want to sell its share in Norilsk and has rebuffed previous offers. The mine and smelter complex above the Arctic circle in Siberia has been at the center of Russian business intrigues for much of its post-Soviet history.

Mr. Potanin, who is a member of the board of trustees of the Solomon R. Guggenheim Foundation, and Mr. Deripaska have been jostling for control since 2008, when another Russian oligarch, Mikhail D. Prokhorov, sold his stake. Mr. Prokhorov, who now heads a political party in Russia, used a portion of the proceeds to buy the New Jersey Nets basketball team and invest in the Atlantic Yards development in Brooklyn, the site of the team’s planned new arena.

Article source: http://feeds.nytimes.com/click.phdo?i=d2d3ee050d4e5b2c7754971db9224f09