Home' Trinidad and Tobago Guardian : June 27th 2017 Contents A16 business
guardian.co.tt Tuesday, June 27, 2017
hour minimum wage law has
cost the city jobs, according
to a study released yesterday
that contradicted another new
study published last week.
A University of Washington
team studying the law's effects
found that the law has boosted pay
in low-wage jobs since it took ef-
fect in 2015, but that it also caused
a nine per cent reduction in hours
worked, The Seattle Times report-
ed. For an average low-wage Se-
attle worker, that's a loss of about
US$125 per month, the study said.
"If you're a low-skilled work-
er with one of those jobs, US$125
a month is a sizeable amount of
money," said Mark Long, one of
"It can be the difference be-
tween being able to pay your rent
and not being able to pay your
There would be about 5,000
more low-wage jobs in the city
without the law, the study esti-
Seattle was one of the first US
cities to adopt a US$15 minimum
wage law, and its experience is
being closely watched as other
cities have followed suit and as
advocates push for a higher fed-
eral minimum wage. (AP)
BMW said Monday it will invest
an additional US$600 million to
expand its South Carolina plant,
creating 1,000 new jobs over the
next four years.
CEO Harald Krueger's announce-
ment coincided with the German
automaker's celebration of 25 years
of manufacturing in the state. BMW,
which has already invested US$7 bil-
lion in South Carolina, also unveiled
its 2018 BMW X3, a compact sports
vehicle expected to be available in No-
vember. It will be built at the plant
in Greer alongside the BMW X4, X5
The expansion will boost its work-
force to more than 10,000 people.
BMW will separately invest US$200
million over five years on workforce
training, Krueger said. The company
touts the South Carolina plant as its
largest worldwide, producing more
than 411,000 X models last year.
About 70 per cent of BMWs made
there are exported. Last year, the au-
tomaker reached a milestone when its
2 millionth BMW was exported from
the Charleston port.
"BMW is the company that, in many
ways, put South Carolina on the map
when its leadership decided to build its
first North American manufacturing
facility" in the state a quarter century
ago, said Gov. Henry McMaster. Oth-
ers in attendance Monday included US
Sen. Lindsey Graham and US Rep Joe
Wilson of South Carolina.
Suppliers and other vehicle manu-
facturers have followed BMW to the
state in the ensuing decades.
According to the state Commerce
Department, South Carolina is now
home to nearly 400 companies in
the automotive industry, employing
66,000 people. Since 2011, five in-
ternational tire companies also have
announced new plants or expansions
in the state, which ranks first nation-
wide in tire exports.
Mercedes-Benz Vans broke ground
last July on a US$500 million assembly
plant to build Sprinter vans in Lad-
son, about 20 miles (32 kilometres)
northwest of Charleston. For the past
decade, the company has put Sprinter
vans made in Germany back together
at an existing plant next to the site.
And Volvo Cars is building its first
North American plant, a US$500 mil-
lion investment, in South Carolina's
threaten global economy
global economy has picked
up and prospects for the next
few months are the best in a
But the recovery is maturing and
faces risks from populist rejection
of free trade and from high debt
that could burden consumers and
companies as interest rates rise.
Those were key takeaways from
a review of the global economy
released by the Bank for Inter-
national Settlements, an inter-
national organisation for central
banks based in Basel, Switzerland.
The report said that "the glob-
al economy's performance has
improved considerably and that
its near-term prospects appear
the best in a long time." Global
growth should reach 3.5 per cent
this year, according to a summa-
ry of forecasts, not quite what it
was before the Great Recession but
in line with long-term averages.
Meanwhile, financial markets for
stocks and bonds have been unu-
sually buoyant and steady.
On top of that, forecasts by
governments and international
organisations as well as by private
analysts point to "further gradual
improvement" in coming months.
Key risks include a possible
weakening of consumer spend-
ing across different economies. So
far, the recovery has been largely
fueled by people being willing
and able to spend more. But that
trend could fall victim to higher
levels of debt as interest rates
rise in some countries and as the
amount people need to spend to
service their debts takes a bigger
chunk of income.
Countries that were slammed
by collapsing real estate markets
during the Great Recession seem
less vulnerable now, such as the
United States, the UK, and Spain.
But debt burdens are more worri-
some in a range of other countries
mentioned in the report, including
China, Australia and Norway.
Another risk comes from weak
business investment, typically the
second stage of recovery after con-
sumers start spending more; yet
that kind of spending has lagged
its pre-recession levels for reasons
that aren't always clear to econ-
The BIS urged governments
around the world to take advan-
tage of the economic recovery as
an opportunity to make growth
more resistant to trouble by im-
plementing pro-business and pro-
In particular, the report warned
against a backlash against glo-
balization, saying that trade and
interconnected financial markets
had led to higher standards of
living and lifted large parts of the
world's population out of poverty.
It called for domestic policies to
address inequality and lost jobs,
saying that changing technology
was often to blame, not free trade.
"Attempts to roll back globalisa-
tion would be the wrong response
to these challenges," it said. (AP)
LONDON---British Prime Minister
Theresa May tried yesterday to
reassure European Union citizens
living in Britain that their lives
and those of their family will not
be disrupted when Britain leaves
the EU in 2019.
She told Parliament that steps will
be taken to make sure the split with the
EU is handled with care with regard to
the estimated three million EU citizens
living inside Britain. She said Britain
wants them to stay after Brexit.
"No families will be split up," she
said, adding that family dependants
who move to Britain to join an EU cit-
izen living here would be able to apply
for "settled" status after five years.
That will be the term used for EU
citizens who meet the five-year rule.
May says they will be entitled to full UK
health and pension benefits.
"After the UK has left the European
Union, EU citizens with settled status
will be able to bring family members
from overseas on the same terms as
British nationals," she said.
She said her plans mean that no one
from the EU who is now in Britain law-
fully will be made to leave when Brexit
The prime minister said this offer
will be dependent on British citizens in
the 27 other EU countries receiving the
same treatment from those countries.
"Our offer will give those three mil-
lion EU citizens in the UK certainty
about the future of their lives and a
reciprocal agreement will provide the
same certainty for the more than one
million citizens living in the European
Union," she said.
May was elaborating on proposals
made last week during a summit of EU
leaders. She said she wants to resolve
the issue early in the two-year Brexit
negotiations to ease anxiety for EU
citizens living in Britain.
EU officials had said the proposals
were a reasonable first step but fell
short of expectations.
After Monday's announcement, the
EU's chief Brexit negotiator, Michel
Barnier, tweeted that there was still
"more ambition, clarity and guaran-
Many details have not yet been
worked out and further negotiations
are expected. (AP)
British Prime Minister Theresa May
makes a statement on the European
Council to members in the House of
Commons, London, yesterday. AP PHOTO
Study says Seattle's
minimum wage costs jobs
A man looks at an electronic stock board of a securities firm in Tokyo yesterday. Asian markets rose Monday
after Wall Street rebounded from losses to end the week higher on stronger oil and natural gas prices.
Links Archive June 26th 2017 June 28th 2017 Navigation Previous Page Next Page