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<title>Kingsport Times-News Latest Business Feed</title>
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<description>This is the www.timesnews.net data feed for local business.</description>
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<title>Twitter's real-time dispatches suggest a new media landscape: rapid and rife with rumors</title>
<link>http://www.timesnews.net/article.php?id=9014923</link>
<guid>http://www.timesnews.net/article.php?id=9014923</guid>
<pubDate>Wed, 1 Jul 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p class="ap-story-p">NEW YORK (AP) -- Cassy Hayes and Jasmine Coleman were among the first fans to arrive outside the Ronald Reagan UCLA Medical Center in Los Angeles where Michael Jackson was brought and later pronounced dead.</p>
<p class="ap-story-p">How had Hayes, 25, and Coleman, 21, heard the news so quickly?</p>
<p class="ap-story-p">Twitter.</p>
<p class="ap-story-p">The two young women had learned about Jackson's health like so many who get their news nowadays: by reading the ever-flowing feed of real-time information on the microblogging service.</p>
<p class="ap-story-p">Jackson's unexpected death at 50 was just the latest major news event where Twitter played a central role. But just as quickly as Twitter has emerged as a news source, so, too, has its susceptibility to false rumors become abundantly apparent.</p>
<p class="ap-story-p">The extraordinary amount of news coverage the mainstream media has recently devoted to Twitter has led some to think the press is in love with the 3-year-old microblogging service. But it's a jealous love.</p>
<p class="ap-story-p">Twitter's constantly updating record of up-to-the-minute reaction has in some instances threatened to usurp media coverage of breaking news. It has also helped many celebrities, athletes and politicians bypass the media to get their message directly to their audience.</p>
<p class="ap-story-p">Make no mistake about it, Twitter has in many ways been a boon to the media. It's one more way a story might go viral and it's arguably the best way for a news outlet to get closer to its readership. Most outlets now have a presence on Twitter with a feed directing readers to their respective sites.</p>
<p class="ap-story-p">But even in an Internet world that has for years eroded the distance between media and consumer, Twitter is a jolt of democratization to journalism.</p>
<p class="ap-story-p">To date, the most salient, powerful example of Twitter's influence has been Iranian protesters using the service (among many other methods) to assemble marches against what they feel has been an unjust election.</p>
<p class="ap-story-p">Early in the protests, the State Department even urged Twitter to put off maintenance that would have temporarily cut off service. Twitter is difficult for governments to block because tweets - 140 characters or less - can be uploaded from mobile phones like a text message. (The Iranian government has nevertheless often succeeded in blocking Twitter, Facebook and other social networks.)</p>
<p class="ap-story-p">Further, many Americans were upset at what they considered CNN's thin early coverage of the revolution in Iran and voiced their complaints (where else?) on Twitter. Some said they preferred news on Twitter to the cable news network.</p>
<p class="ap-story-p">Twitter also produced eyewitness accounts of the Mumbai terrorist attacks last year. And when the US Airways jetliner crashed into New York's Hudson River, Twitter was among the first places photos of the landing were linked.</p>
<p class="ap-story-p">Many users have become accustomed to clicking on Twitter when news breaks. There, they can find a sea of reaction, commentary and links to actual articles.</p>
<p class="ap-story-p">The popular technology blog TechCrunch recently questioned whether Twitter is "the CNN of the new media generation."</p>
<p class="ap-story-p">"Twitter absolutely changes the media landscape," said Ross Dawson, author and communications strategy analyst. "I like to refer to Marshall McLuhan's description of media as `an extension of our senses.' Now, Twitter is extending our senses to tens of millions of people who are often right on the scene where things are happening."</p>
<p class="ap-story-p">Ashton Kutcher, one of Twitter's most popular users, in an earlier Web video evoked the rhetoric of a revolutionary: "We can and will create our media." Kutcher, who declined an interview request, sees Twitter as putting media power in the hands of regular people and - presumably - regular movie stars.</p>
<p class="ap-story-p">But comedian Michael Ian Black, a popular figure on Twitter, notes that while Twitter allows someone to "communicate very directly with people," it also allows you to keep them "totally at arm's length."</p>
<p class="ap-story-p">There are no follow-up questions on Twitter if the user chooses not to hear them. When tweets replace an interview or a press conference, something is lost. Twitter - where brevity can neatly do away with messy details - can thus be used to control one's message and one's image.</p>
<p class="ap-story-p">Cyclist Lance Armstrong, for example, has caused some news organizations to question how they approach Twitter. Armstrong, who's in the midst of a comeback bid, often treats Twitter as his primary news outlet.</p>
<p class="ap-story-p">In May during the Tour of Italy, Armstrong's end-around the media caused some news organizations to boycott his tweets. VeloNews.com, the Web site for a competitive cycling magazine, avoids using Twitter to establish facts without independent sourcing.</p>
<p class="ap-story-p">"It's one-sided," said VeloNews.com editor Steve Frothingham, who's a former Associated Press reporter. "It's us just sitting there taking what he's giving. We can't just not ask follow-up questions, we can't ask any questions."</p>
<p class="ap-story-p">Frothingham also notes the awkwardness of distribution. Armstrong's followers (more than 1.1 million) outnumber the readership of VeloNews.com. When Armstrong announced the birth of a son in early June on Twitter, he also, in effect, scooped cycling and tabloid outlets.</p>
<p class="ap-story-p">But truthfulness remains the biggest problem: Those direct, near-instantaneous dispatches are far less reliable than old-fashioned journalism. News that circulates on Twitter, re-tweeted from person to person, can spread quickly - often too quickly for it to be verified. False rumors spread daily on Twitter.</p>
<p class="ap-story-p">In the days following Jackson's death, fake reports have frequently had to be knocked down by news organizations that do the fact checking. Dawson notes that established media channels still have a virtual monopoly on credibility.</p>
<p class="ap-story-p">Erroneous declarations of celebrity deaths have been one trend.</p>
<p class="ap-story-p">Patrick Swayze, who is battling pancreatic cancer, recently had to defend that he is indeed still alive after thousands of Twitter users spread the news that he was dead.</p>
<p class="ap-story-p">Jeff Goldblum had to do the same. On Monday, he appeared on Comedy Central's "The Colbert Report" to confirm his warm-bloodedness. The host, Stephen Colbert, refused to believe him, preferring the random accounts on Twitter. Eventually, Goldblum, too, became convinced and eulogized himself.</p>
<p class="ap-story-p">While involvement in the protests in Iran might be Twitter's most meaningful achievement thus far, some have noted that many inaccuracies were circulated.</p>
<p class="ap-story-p">That has raised the concern that some people or governments may use Twitter to spread disinformation even more dangerous than suggesting Jeff Goldblum is dead.</p>
<p class="ap-story-p">Andrew Keen, author of "The Cult of the Amateur," believes Twitter - and whatever real-time Web services follow in its wake - represents the future of both the Internet and media.</p>
<p class="ap-story-p">But Keen says the Iran coverage on Twitter "exposes all the weakness of the service, the fact that it's so chaotic and unreliable. Who knows who's tweeting what?"</p>
<p class="ap-story-p">Some news outlets have begun aggregating, translating and confirming tweets said to be from Iran, including The Daily Dish (Andrew Sullivan's blog for The Atlantic magazine) and the Web site for the National Iranian American Council, a nonprofit organization that represents the interests of Iranian Americans on Capitol Hill.</p>
<p class="ap-story-p">"The very nature of an editor needs to shift," says Keen. The Iran experience "is going to underline the need more and more for curators, for people who are able to take all of this raw content and actually shape it into valuable news."</p>]]></description>
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<title>Swiss bank must release names of suspected U.S. tax cheats</title>
<link>http://www.timesnews.net/article.php?id=9014918</link>
<guid>http://www.timesnews.net/article.php?id=9014918</guid>
<pubDate>Wed, 1 Jul 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p>MIAMI &mdash; Swiss bank UBS "systematically and deliberately" violated U.S. law by dispatching private bankers to recruit wealthy Americans interested in evading taxes and must be forced to reveal the identities of 52,000 of those clients, the Justice Department said in a court filing Tuesday.<br /><br />The filing, which comes amid several published reports that the case may be near settlement, urges U.S. District Judge Alan Gold to hold UBS accountable for conducting years of illegal business on U.S. soil &mdash; business that earned the bank more than $100 million in fees but cost the U.S. hundreds of millions of dollars in unpaid taxes.<br /><br />"It is time for UBS to face the consequences that it has brought upon itself," said Justice Department tax attorney Stuart Gibson in the 55-page filing. "The United States has proven its case for enforcement."<br /><br />Gold has set a hearing on whether to enforce what are known as "John Doe summonses" used by the Internal Revenue Service to seek information about U.S. taxpayers. U.S. and Swiss newspapers have reported a settlement is likely before that hearing, but Justice Department spokesman Charles Miller declined to comment.<br /><br />UBS spokeswoman Karina Byrne said the bank is "open to an appropriate solution" short of going to court but said no settlement has been completed. In a statement, she repeated UBS contention that disclosing the U.S. taxpayer names would violate Swiss law and that the dispute should be resolved by the two governments rather than the courts.<br /><br />"UBS has sought to comply with the summons without violating Swiss law," Byrne said. "It has provided to the IRS as much information as it can from those records located in the U.S., where Swiss law does not apply."<br /><br />The IRS summons seeks the identities of all U.S. taxpayers who had an "undeclared" account at UBS between 2002 and 2007. Many of these UBS clients have already voluntarily come forward to settle tax obligations with the IRS, Byrne said.<br /><br />UBS previously reached a deferred prosecution agreement with the Justice Department in which it agreed to disclose the identities of up to 300 U.S. clients and pay $780 million to the U.S. government. In that deal, UBS admitted regularly violating U.S. law through its client recruitment methods, use of sham offshore entities and filing of false paperwork.<br /><br />"In sum, UBS has admitted that its bankers committed very serious crimes on U.S. soil, in ways that subjected UBS to the full jurisdiction of the IRS and the courts of the United States," Gibson said in the U.S. filing.<br /><br />One of those 300 UBS clients, accountant Steven Michael Rubinstein, pleaded guilty last week in Fort Lauderdale federal court to charges of filing a false tax return. He faces up to three years in prison.<br /><br />Miami federal prosecutors also have obtained an indictment charging former UBS senior executive Raoul Weill with tax evasion conspiracy for his role in handling cross-border business and private banking. Weill remains in Switzerland and has been declared a fugitive from justice.<br /><br />That indictment followed the July 2007 guilty plea by former UBS executive Bradley Birkenfeld to a similar charge of conspiracy to defraud the U.S. Birkenfeld has yet to be sentenced and has been cooperating extensively with federal investigators.</p>]]></description>
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<title>Wellmont opens Norton Education Center</title>
<link>http://www.timesnews.net/article.php?id=9014906</link>
<guid>http://www.timesnews.net/article.php?id=9014906</guid>
<pubDate>Tue, 30 Jun 2009 00:00:00 EDT</pubDate>
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<p>NORTON &mdash; A pioneering band of 11 third-year medical students had all of Tuesday to enjoy the view from their new digs overlooking Mountain View Regional Medical Center in Norton. Beginning today, their view will be mostly focused on clinical rotations at Mountain View, Lonesome Pine Hospital in Big Stone Gap and Lee Regional Medical Center in Pennington Gap.</p>
<p>Wellmont Health System&rsquo;s facilities in Southwest Virginia heralded a new era Tuesday with medical education in the forefront, represented by Wellmont&rsquo;s new Education Center in Norton. A $250,000 overhaul of a former convent building above the Mountain View hospital provides medical students at Lincoln Memorial University&rsquo;s DeBusk College of Osteopathic Medicine (LMU-DCOM) a center of operations &mdash; in essence, a physician trainee dormitory &mdash; during clinical rotations in actual hospital settings.</p>
<p>Wellmont has also received approval to offer the first medical residency for LMU-DCOM students beginning next July.</p>
<p>Clinical rotations for third-year medical students &ldquo;is not easy,&rdquo; said Mountain View President David Brash. &ldquo;That&rsquo;s why we are providing (the Mountain View facility). Today we celebrate. Tomorrow they start work.&rdquo;</p>
<p>Wellmont President and CEO Mike Snow said Tuesday&rsquo;s ribbon cutting for the new Education Center &ldquo;fits into our operating strategy for Wellmont in this region to increase the number of physicians serving this region.&rdquo;</p>
<p>Snow said the average age of physicians in the region is 50, and the partnership with LMU-DCOM &ldquo;is the first step down a path. We will be back next year when the residency program gets started full swing.&rdquo;</p>
<p>Wellmont Director of Medical Education Dr. Maurice Nida said Tuesday&rsquo;s Education Center opening establishes &ldquo;a new era for Wellmont in osteopathic medicine&rdquo; where students &ldquo;get the best of both worlds&rdquo; with training in rural hospitals as well as major health care facilities such as Holston Valley Medical Center and Bristol Regional Medical Center.</p>
<p>&ldquo;This is wonderful for me personally,&rdquo; said the longtime Wise County physician and medical examiner. &ldquo;It&rsquo;s not often we see a hospital during these tough economic times provide the dedication and leadership to invest in the future. Investing in these (future doctors) is investing in our future.&rdquo;</p>
<p>Tim Scott of Toledo, Ohio, one of the 11 LMU-DCOM students to help break in the new facility, said a huge plus is the fact students can stay at the Education Center during clinical rotations &ldquo;free of charge, which is a huge burden off our shoulders.&rdquo;</p>
<p>&ldquo;From day one the main thing we worry about is rotations,&rdquo; Scott said. &ldquo;I couldn&rsquo;t be more proud to start my rotations here today.&rdquo;</p>
<p>The students &ldquo;will hit the ground running,&rdquo; said Brash. &ldquo;We know the DeBusk College of Osteopathic Medicine has prepared them well for this. This is the first day of a partnership that will have an immediate impact and a lasting impact. Our hospitals are excited to receive (the students), and we&rsquo;re all excited to establish a program that will help train the next generation of doctors.&rdquo;</p>
<p>&ldquo;Our motto from the start has been growing local kids to become local doctors,&rdquo; Nida said. &ldquo;We consider it a privilege to work with LMU-DCOM to make that motto a reality.&rdquo;</p>
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<title>Tennessee not scaling back job recruitment efforts, governor says</title>
<link>http://www.timesnews.net/article.php?id=9014905</link>
<guid>http://www.timesnews.net/article.php?id=9014905</guid>
<pubDate>Tue, 30 Jun 2009 00:00:00 EDT</pubDate>
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<p>BRISTOL, Tenn. &mdash; The business of recruiting new jobs to Tennessee goes on regardless of economic conditions, Gov. Phil Bredesen said Tuesday.</p>
<p>&ldquo;We&rsquo;ve got three multibillion-dollar projects in the last nine months here. ... We&rsquo;ll continue to get some good projects,&rdquo; Bredesen told reporters during the launch of the state&rsquo;s &ldquo;Tennessee Groves&rdquo; tree and flower planting initiative at the Interstate 81 welcome center.</p>
<p>Those projects include Volkswagen&rsquo;s decision to locate in Hamilton County and Hemlock Semiconductor&rsquo;s move to Montgomery County.</p>
<p>Bredesen recently returned from a foreign trip to Switzerland, Germany and Poland, where he was working to attract investments for a West Tennessee megasite near Brownsville.</p>
<p>This October, he&rsquo;ll go to Japan, followed by a nine-day trade mission to China.</p>
<p>&ldquo;I think particularly with European and Japanese businesses, they just like to see the governor. You gotta be there,&rdquo; Bredesen said of the trips. &ldquo;China is such a huge growing economy. ... Some of the trips might be very successful, others less successful, but it&rsquo;s the sort of thing you just make a commitment to do over the years.</p>
<p>&ldquo;I would say especially in China the presence of top officials is really important. Government and business is so intertwined in China compared to in this country.&rdquo;</p>
<p>Despite the state&rsquo;s tight budget situation, Bredesen said state government can still offer training dollars and infrastructure investments as incentives to land new employers.</p>
<p>&ldquo;The state has never put money into a direct subsidy. We can&rsquo;t do that constitutionally, and it&rsquo;s just not a place we have competed,&rdquo; he noted.</p>
<p>As for General Motors&rsquo; decision to locate a subcompact car assembly plant in Michigan rather than at GM&rsquo;s facility in Spring Hill, Bredesen said the state put together a $20 million incentive package composed mainly of education and training dollars.</p>
<p>The governor insisted the Spring Hill plant still has a good future.</p>
<p>&ldquo;It&rsquo;s a modern plant. GM put $800 million into retooling it,&rdquo; Bredesen said. &ldquo;(GM officials) told me that as the industry comes back and as they start producing more cars, they&rsquo;re going to need to expand capacity, and I feel confident Spring Hill will be on their short list. ... The incentive package that Michigan put on the table was something they couldn&rsquo;t refuse. They asked for a great deal more money than we were willing to put forward.</p>
<p>&ldquo;We put forward a good proposal that was comparable to things we had done for GM before. ... It obviously was not enough.&rdquo;</p>
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<title>Madoff goes to jail forever; 10 more may face charges in highest-profile financial fraud cases in history</title>
<link>http://www.timesnews.net/article.php?id=9014894</link>
<guid>http://www.timesnews.net/article.php?id=9014894</guid>
<pubDate>Tue, 30 Jun 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p class="ap-story-p">NEW YORK (AP) -- In one of the highest-profile financial fraud cases in history, a judge firmly sided with Bernard Madoff's thousands of victims when he gave the disgraced financier a sentence long enough for him to die in prison.</p>
<p class="ap-story-p">But the probe does not end there.</p>
<p class="ap-story-p">A person familiar with the investigation said 10 more people would face federal charges by the time the probe is completed. So far, only Madoff and an accountant accused of failing to make basic auditing checks have been criminally charged.</p>
<p class="ap-story-p">The person, who spoke on condition of anonymity because the investigation is ongoing, wouldn't detail potential charges or say whether the 10 would include Madoff's family or former employees.</p>
<p class="ap-story-p">In court Monday, the 71-year-old Madoff admitted it was impossible for him to excuse deeds that U.S. District Judge Denny Chin noted had cost investors $13.2 billion by conservative estimates and $50 billion by the estimate Madoff gave his sons in December.</p>
<p class="ap-story-p">"I don't ask any forgiveness," Madoff told Chin. "Although I may not have intended harm, I did a great deal of harm."</p>
<p class="ap-story-p">Later, he turned around to look at the victims lining the first row of the gallery.</p>
<p class="ap-story-p">"I will turn and face you," he said mechanically. "I'm sorry. I know that doesn't help you."</p>
<p class="ap-story-p">The judge then took his turn.</p>
<p class="ap-story-p">"This is not just a matter of money," Chin said. "The breach of trust was massive. Investors - individuals, charities, pension funds, institutional clients - were repeatedly lied to, as they were told their monies would be invested in stocks when they were not."</p>
<p class="ap-story-p">Madoff received the maximum term for the massive Ponzi scheme run at least since the early 1990s that demolished the life savings of thousands of people, wrecked charities and shook confidence in the U.S. financial system.</p>
<p class="ap-story-p">Chin dismissed Madoff's pleas for leniency, noting that Madoff made substantial loans to family members, including moving $15 million of his company's money into his wife's personal accounts as it became clear that the scheme was unraveling.</p>
<p class="ap-story-p">"I simply do not get the sense that Mr. Madoff has done all that he could or told all that he knows," Chin said.</p>
<p class="ap-story-p">"Here, the message must be sent that Mr. Madoff's crimes were extraordinarily evil and that this kind of irresponsible manipulation of the system is not merely a bloodless financial crime that takes place just on paper, but it is instead ... one that takes a staggering human toll," Chin said.</p>
<p class="ap-story-p">He noted the pain of more than 100 investors - several of whom whooped and cheered in court when he was sentenced - who had urged Madoff be sent to prison for life.</p>
<p class="ap-story-p">Madoff, looking thinner than his last court appearance in March, gave no noticeable reaction when the sentence was announced.</p>
<p class="ap-story-p">When nine victims described their pain earlier, Madoff kept his eyes focused ahead, his head slightly bowed. Some openly wept or raised their voices, labeling Madoff a "monster," "a true beast," a "psychopath" and an "evil low-life."</p>
<p class="ap-story-p">Dominic Ambrosino, a retired jail guard, said losing his life savings cost him his freedom and he got satisfaction from knowing Madoff will be confined to prison "in much the same way he imprisoned us as well as others."</p>
<p class="ap-story-p">He added: "In a sense, I would like someone in the court today to tell me how long is my sentence."</p>
<p class="ap-story-p">Tom Fitzmaurice said Madoff left him financially ruined as he "cheated his victims out of their money so that he and his wife, Ruth, and their two sons could live a life of luxury beyond belief. This life is normally reserved for royalty, not for common thieves."</p>
<p class="ap-story-p">Carla Hirschhorn said the world she had built with her husband "crumbled beneath us" when Madoff revealed his fraud to his sons and was arrested the following December morning by FBI agents.</p>
<p class="ap-story-p">She said that since that day, "life has been a living hell. It feels like a nightmare that we can't wake from."</p>
<p class="ap-story-p">Sheryl Weinstein, a certified accountant, said Madoff was able to carry out his fraud because he seemed like a normal human being.</p>
<p class="ap-story-p">"But underneath the facade is a true beast," she said. "He should not be given the opportunity to blend so seamlessly into our society again."</p>
<p class="ap-story-p">When asked by the judge whether he had anything to say, Madoff slowly stood, leaned forward on the defense table and spoke in a monotone for about 10 minutes. At various times, he referred to his monumental fraud as a "problem," "an error of judgment" and "a tragic mistake."</p>
<p class="ap-story-p">He claimed he and his wife were tormented, saying she "cries herself to sleep every night, knowing all the pain and suffering I have caused."</p>
<p class="ap-story-p">He said: "I live in a tormented state now knowing of all the pain and suffering that I have created. I have left a legacy of shame, as some of my victims have pointed out, to my family and my grandchildren. That's something I will live with for the rest of my life."</p>
<p class="ap-story-p">His immediate family did not attend the sentencing. But Ruth Madoff - often a target of victims' scorn since her husband's arrest - broke her silence afterward by issuing a statement through her lawyer. She said she, too, had been misled.</p>
<p class="ap-story-p">"I am embarrassed and ashamed," she said. "Like everyone else, I feel betrayed and confused. The man who committed this horrible fraud is not the man whom I have known for all these years."</p>
<p class="ap-story-p">Prosecutor Lisa Baroni said Madoff deserved a life sentence because he "stole ruthlessly and without remorse."</p>
<p class="ap-story-p">Madoff, who has been jailed since March, already has taken a severe financial hit: Last week, a judge issued a preliminary $171 billion forfeiture order stripping Madoff of all his personal property, including real estate, investments and $80 million in assets his wife had claimed were hers. The order left her with $2.5 million that couldn't be tied to the fraud.</p>]]></description>
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<title>Call for banking reform shifts from Wall Street to neighborhood branches</title>
<link>http://www.timesnews.net/article.php?id=9014893</link>
<guid>http://www.timesnews.net/article.php?id=9014893</guid>
<pubDate>Tue, 30 Jun 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p>WASHINGTON &mdash; Risky bank policies that contributed to the financial crisis were as common in neighborhood branches as they were on Wall Street, according to a labor-backed coalition that will propose new reforms today.<br /><br />Bank of America Corp. and other large banks encouraged customer service representatives and tellers to burden consumers with debt and enroll them in high-fee programs, alleges a group which includes the National Association of Consumer Advocates and the U.S. Public Interest Research Group.<br /><br />&ldquo;One of the core parts of the economic collapse is a business model that encourages too much risk or short-term profit over long-term stability,&rdquo; said Stephen Lerner, who runs the financial reform project for the Service Employees International Union, which is coordinating the effort.<br /><br />Lerner said employees under pressure to sell high-fee products ended up targeting vulnerable populations, including students and the elderly.<br /><br />Bank of America spokesman Scott Silvestri could not be reached for comment Monday.<br /><br />On a conference call Tuesday with the consumer and labor groups, current and former Bank of America employees will argue that banks&rsquo; reliance on fees and high interest rates contributed to the credit crisis. They will call for reforms that target the consumer end of the banking industry, even as the Obama administration continues to promote its plan for top-level regulatory reform.<br /><br />Retail banks must change fees and incentives to eliminate &ldquo;the current sell anything culture,&rdquo; Lerner said. He said employees need whistleblower protection so they can alert regulators to risky bank practices occurring at the retail level.<br /><br />That policy might have helped Christopher Feener, a 15-year veteran of the credit card industry who worked for MBNA and Bank of America, which absorbed MBNA in 2006. Feener said he and his colleagues observed routine violations of the federal Fair Debt Collection Practices Act and disclosure rules, but could not speak out for fear of reprisal.<br /><br />Feener lost his job in September shortly after his wife &mdash; another former bank employee &mdash; discussed participating in an expose on network television.<br /><br />&ldquo;Collecting money was always a hard job, but in the last two years it just got crazy,&rdquo; Feener said. He said his team was forced to call borrowers&rsquo; neighbors, falsely threaten legal action and pressure borrowers to bounce checks or default on other loans in order to meet credit card payments.<br /><br />Bounced checks allowed the bank to extend collection periods for a month, so they had to report fewer loan losses and could consider more accounts active, he said.<br /><br />Feener said he sensed the financial crisis as early as 2007, as customers started defaulting on credit cards without making a single payment.<br /><br />Also on Tuesday&rsquo;s call will be Rep. Keith Ellison, D-Minn., who hopes to push the proposed regulations through the House Financial Services Committee.<br />Comments<br /></p>]]></description>
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<title>Audit shows  Wellmont overstated earnings by $7.2 million in 2006, 2007


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<link>http://www.timesnews.net/article.php?id=9014872</link>
<guid>http://www.timesnews.net/article.php?id=9014872</guid>
<pubDate>Mon, 29 Jun 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p>Wellmont Health System overstated its 2007 earnings by $7.2 million and posted a net loss for 2008, an audit released Monday revealed.</p>
<p>The health system said its initial results for 2006 and 2007 had been overstated due to recording errors posted during the tenure of former Wellmont Chief Executive Officer Dr. Richard Salluzzo.</p>
<p>Salluzzo on Monday defended his administration, saying the restated financial results are &ldquo;essentially a disagreement between auditors.&rdquo;</p>
<p>According to the restated financials, Wellmont posted income from operations of $2.0 million for fiscal year 2007 &mdash; $7.2 million less than the previously reported figure of $9.2 million. The health system posted income from operations of $2.8 million for fiscal year 2006, according to the restated results. Wellmont did not provide its previously reported income for 2006.</p>
<p>For fiscal year 2008, Wellmont recorded a net loss of $4.59 million, according to the audit released Monday.</p>
<p>The financial review &ldquo;did not identify any theft or personal gain associated with the accounting issues, nor did it indicate any issues with regulatory agencies or payors,&rdquo; Wellmont&rsquo;s release states.</p>
<p>Wellmont officials would not respond to questions Monday. But in a video message to employees, Wellmont CEO Mike Snow said completing the financial review is a &ldquo;milestone for us.&rdquo;</p>
<p>&ldquo;To be able to put this behind us &mdash; it&rsquo;s just a huge milestone,&rdquo; Snow said. &ldquo;We can now actually turn our attention to operations and budgets.&rdquo;</p>
<p>Snow became Wellmont&rsquo;s interim president and CEO in July 2008 and was named to the post permanently earlier this year.</p>
<p>His predecessor, Salluzzo, headed the health system from 2004 to last year when he accepted a similar job at Cape Cod Healthcare in Massachusetts.</p>
<p>Salluzzo&rsquo;s chief financial officer, Chris Knight, also left Wellmont last year.</p>
<p>Salluzzo issued a statement on Monday saying at issue is the value of Wellmont Health System&rsquo;s accounts receivable &mdash; the money it is owed by insurance companies and other payers.</p>
<p>&ldquo;Interpreting the value of accounts receivable is to some extent a matter of opinion. It&rsquo;s a subjective calculation based on different assumptions, and two accounting firms will often reach different conclusions,&rdquo; Salluzzo said.</p>
<p>During Salluzzo&rsquo;s tenure, the firm Grant Thornton LLP handled Wellmont&rsquo;s audits. After Salluzzo left, Wellmont hired the accounting firm KPMG.</p>
<p>Salluzzo said Wellmont received clean audits during his four years at the health system.</p>
<p>&ldquo;In addition, my staff and I were able to turn Wellmont from a $60 million cumulative operating loss in the five years before I arrived, to an operating gain of more than $12 million during my time at Wellmont, after allowing for today&rsquo;s restatement,&rdquo; Salluzzo said.</p>
<p>In his message to employees, Snow said the restatement of results and the auditing process is &ldquo;hard to understand.&rdquo;</p>
<p>&ldquo;Some of it is about accounting artwork, some of it is about geography in the income statement, some of it is about deteriorating operations or bad decisions in the past,&rdquo; Snow said.</p>
<p>&ldquo;The important thing is &mdash; this is in the rearview mirror. It&rsquo;s done,&rdquo; he said.</p>
<p>Snow said he&rsquo;s looking forward to Wellmont&rsquo;s financial results for 2009 and 2010.</p>
<p>&ldquo;The actions we&rsquo;ve taken earlier this year and the results that we&rsquo;ve been posting recently gives us great optimism for the future,&rdquo; Snow said.</p>
<p>In January, Wellmont announced a series of cost-cutting measures, including elimination of 86 jobs and a reduction in corporate and administrative expenses. Another 60 positions that were vacant at the time were not filled.</p>
<p>And in April Wellmont cut another 40 employees and reassigned others to further improve operational efficiency.</p>
<p>Those cuts have already saved the health system $20 million and improved its cash position by 16 percent since Dec. 31, primarily through operational improvements, Wellmont said.</p>
<p>As for the financial results, Snow said Wellmont has taken steps to prevent accounting errors in the future. The health system has beefed up its compliance and internal auditing areas, issued a code of conduct to employees, and has advertised an &ldquo;ethics hotline&rdquo; for employees to report issues. It&rsquo;s also strengthened business processes in accounting and in other areas &ldquo;so there is the check and balance to make sure that some of the errors that occurred don&rsquo;t recur,&rdquo; Snow said.</p>
<p>In Massachusetts, Salluzzo wished Snow and his team well.</p>
<p>&ldquo;These are challenging times for all health care systems,&rdquo; Salluzzo said, &ldquo;but I have no doubt that Chief Executive Officer Mike Snow and his excellent team will continue Wellmont&rsquo;s record to high clinical quality and outstanding patient care.&rdquo;</p>]]></description>
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<title>Rogersville Heritage Association signs contract with new innkeepers of Hale Springs Inn</title>
<link>http://www.timesnews.net/article.php?id=9014858</link>
<guid>http://www.timesnews.net/article.php?id=9014858</guid>
<pubDate>Sun, 28 Jun 2009 00:00:00 EDT</pubDate>
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<p>ROGERSVILLE &mdash; The Rogersville Heritage Association finally got its contract signed with the new Hale Springs Inn innkeepers Friday, and sometime this week the new operators are expected to schedule an opening date.</p>
<p>Rogersville Heritage Association President Dr. Eddie Abernathy told the Times-News Sunday there are guests wanting to stay at the inn over the July 4 weekend, and efforts are in full swing to get the rooms ready.</p>
<p>As for the restaurant, however, the opening date is likely to be further into July, as some of the kitchen equipment on order has not arrived yet.</p>
<p>The mother and daughter team of Kim and Amy Cason, who signed a three-year contract Friday, will manage the nine-suite inn and the restaurant, which will be called McKinney&rsquo;s.</p>
<p>The Casons, who are from Jefferson City, have 10 years of innkeeper experience in Gatlinburg. Chef Brad Daniels, formerly of Savannah, Ga., will serve patrons &ldquo;contemporary Southern cuisine.&rdquo;</p>
<p>&ldquo;When our guests walk in the door they will be welcomed with true Southern hospitality,&rdquo; Kim Cason stated in a press release issued by the RHA. &ldquo;We are proud of the level of service we are able to offer.&rdquo;</p>
<p>Negotiations between the Casons and the RHA had been ongoing for months. Thursday the two groups met to sign what was believed to be a mutually agreed upon contract when the Casons&rsquo; reportedly asked for an additional $7,000 in attorney&rsquo;s fees to be paid by the RHA.</p>
<p>Although the RHA declined, the two groups ironed out a &ldquo;compromise&rdquo; &mdash; the details of which were not released publicly &mdash; and signed the contract Friday.</p>
<p>Attempts to contact the Casons for comment Sunday via a phone number provided by RHA were unsuccessful.</p>
<p>Despite the long difficult contract negotiation, Abernathy said he is very happy with the RHA&rsquo;s choice of innkeepers.</p>
<p>&ldquo;They used to run an inn in Gatlinburg and I think they will be great,&rdquo; Abernathy said. &ldquo;They seem to know what they&rsquo;re doing, which is why we liked them to start with. They are extremely knowledgeable about how to run the inn, and they want it to be a first-class place.</p>
<p>&ldquo;Their standard of quality is way up there, and they seem extremely competent.&rdquo;</p>
<p>Abernathy said he anticipates knowing more about the opening schedule Monday.</p>
<p>&ldquo;As of Friday they&rsquo;re still trying to decide because some people want to come stay over the July 4 weekend, and it just depends on if they can get the rooms ready,&rdquo; Abernathy said. &ldquo;Maybe tomorrow (Monday) we&rsquo;ll know that. It&rsquo;s going to take between three and four weeks for the kitchen because there&rsquo;s some equipment that is back-ordered and is not going to be in yet.</p>
<p>&ldquo;It&rsquo;ll probably be about three weeks to a month before everything is going full blast, but they may have some rooms before that.&rdquo;</p>
<p>Renovation of the 185-year-old inn is wrapping up this month bringing to an end a six-year project. The inn closed in 1998 and was purchased by the RHA in 2003 for the purpose of renovating and reopening it.</p>
<p>Upon its opening McKinney&rsquo;s will serve lunch and dinner. Among Chef Daniels&rsquo; specialties are scallops, tomato salad, and shrimp and grits. McKinney&rsquo;s will be open Tuesday through Saturday for lunch from 11 to 2 and for dinner from 5 until 8. Brunch will be served every Sunday from 10 until 2. According to the press release, McKinney&rsquo;s will offer casual fine dining and wine and beer selections will be available.</p>
<p>The Hale Springs Inn was built in 1824 by John McKinney to accommodate stagecoach traffic through Rogersville.</p>
<p>Famous guests include Presidents Andrew Jackson, James K. Polk and Andrew Johnson.</p>
<p>The inn is located at 110 West Main St., in the heart of Rogersville. For more information or to make room or dining reservations, call the inn at 423-272-5171 or inquire online at www.HaleSpringsInn.com.</p>
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<title>Pittston strike: 'Everyone felt that this was their fight'
</title>
<link>http://www.timesnews.net/article.php?id=9014834</link>
<guid>http://www.timesnews.net/article.php?id=9014834</guid>
<pubDate>Sat, 27 Jun 2009 00:00:00 EDT</pubDate>
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<p>Each year for the last 20 years, members of the United Mine Workers Association have gathered in Southwest Virginia for the union&rsquo;s annual fish fry to catch up on the latest news and reminisce about old times.</p>
<p>At this year&rsquo;s fish fry set for Sept. 26 at the Castlewood Fairgrounds, the UMWA will mark 20 years since the strike against Pittston Coal Co., and what&rsquo;s been accomplished since then for organized labor across the country.</p>
<p>UMWA President Cecil Roberts, who was vice president and field commander during the strike, said the labor dispute served as a rallying cry for union members across the country. And the conclusion of the dispute could determine the fate of unions everywhere.</p>
<p>&ldquo;One of the reasons we got so much help from all of organized labor was that everyone felt that this was their fight,&rdquo; Roberts said. &ldquo;This was a time in the country when workers, unions, were reeling.&rdquo;</p>
<p>Unions across the country felt under siege throughout much of the 1980s. Early that decade, the Professional Air Traffic Controllers Organization went on strike, seeking better working conditions, better pay and a 32-hour workweek. President Ronald Reagan, saying the strike was a threat to national security, ordered the striking union members back to the job. More than 11,000 air traffic controllers who didn&rsquo;t return within 48 hours were fired.</p>
<p>The move encouraged more private companies to use their own discretion in hiring and firing employees.</p>
<p>&ldquo;If you go back and look at this period of time when the (Pittston) strike took place, George Walker Bush was president, and that was on the heels of Ronald Reagan, who had fired the air traffic controllers. Every union that had gone on strike from that point forward had been replaced, which was something we hadn&rsquo;t seen in this country since the 1930s,&rdquo; Roberts said.</p>
<p>&ldquo;It was something that became a regular occurrence &mdash; when workers went on strike, they were replaced after the air traffic controllers were fired. And workers started believing that they couldn&rsquo;t win a strike.&rdquo;</p>
<p><strong>Church foundation</strong></p>
<p>A decade before the Pittston coal strike, the UMWA &mdash; headed by then-President Sam Church &mdash; adopted policies that would help the union withstand the pressures of a prolonged labor dispute.</p>
<p>At the 1979 UMWA convention, Church pushed for, and the union approved, giving the union president authority to call selective strikes.</p>
<p>Up to then, the UMWA negotiated with the Bituminous Coal Operators' Association for contracts for union members. If a strike was called, all union members working at BCOA companies walked off the job at the same time.</p>
<p>In addition, Church advocated changing the way union dues were collected. Up to 1979, the union had to periodically ask for a dues increase. Church wanted to set up increases to reflect a union member&rsquo;s hourly wage, so that as wages increased, dues automatically increased as well.</p>
<p>Church, who now lives in Pennington Gap, was unable to talk with the Times-News for this story. But his wife, Patti Church, who worked for the union back in the late 1970s, talked about her husband&rsquo;s work and its impact on the Pittston coal strike.</p>
<p>She said the automatic dues increase and the concept of selective strikes helped the union beat the odds.</p>
<p>&ldquo;I really didn&rsquo;t understand the huge significance that those two things could play later on in the Pittston strike, but if it had not been for that dues increase to make the union more financially sound, and the ability for the selective strike, it was so significantly important to saving the union,&rdquo; Patti Church said.</p>
<p>In 1982, Sam Church ran for reelection as UMWA president, but was defeated by Richard Trumka.</p>
<p>Patti Church said her husband stood side by side with Trumka and Cecil Roberts during the Pittston strike, standing up for a common cause.</p>
<p>For his legacy, she said Sam Church should be remembered for the groundwork he laid a decade before the Pittston strike.</p>
<p>&ldquo;Those two important things &mdash; selective strikes and the union dues &mdash; I think history should remember him for that,&rdquo; Patti Church said.</p>
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<title>Twenty years later, impact of bitter dispute between Pittston, UMWA still felt </title>
<link>http://www.timesnews.net/article.php?id=9014828</link>
<guid>http://www.timesnews.net/article.php?id=9014828</guid>
<pubDate>Fri, 26 Jun 2009 00:00:00 EDT</pubDate>
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<p><a href="http://www.timesnews.net/article.php?id=9014834">'Everyone felt that this was their fight'</a></p>
<p>Camouflage-clad men carrying homemade signs stand along the dusty road leading to the mine&rsquo;s entrance, where other men and some women &mdash; also outfitted in the familiar camouflage colors &mdash; sit on the pavement blocking coal trucks from entering steel gates.</p>
<p>State troopers in their pressed uniforms and sharp hats tell the people to move or be moved, but the warning falls on deaf ears, as the people sing &ldquo;We shall not be moved.&rdquo;</p>
<p>Eventually, the squatters are lifted from the road, carried by police one by one to a nearby bus, and shuttled off to jail.</p>
<p>This was a common scene 20 years ago during the Pittston coal strike, a 10-month-long labor dispute in the mountains of Appalachia.</p>
<p>The United Mine Workers Association&rsquo;s strike against Pittston Coal Co. began on April 5, 1989, with both sides entrenched for a long battle. Some 1,700 union members in Southwestern Virginia, Southern West Virginia and Eastern Kentucky took to the picket lines, claiming unfair labor practices.</p>
<p>Benefits were at the center of the dispute &mdash; particularly healthcare for miners and retirees.</p>
<p>Cecil Roberts, then vice president of the UMWA and point man in the fight against Pittston, recently spoke with the Times-News about the strike and the events leading up to it.</p>
<p>Roberts said that in 1988, the UMWA reached a labor agreement nationwide with most of the major mining employers &mdash; except Pittston.</p>
<p>There, union members continued working in the mines while UMWA officials held negotiations for a new contract with the company.</p>
<p>After 14 months of talks and no contract, then-UMWA President Richard Trumka called a selective strike against Pittston.</p>
<p>Roberts said it was clear to union officials that Pittston wanted a strike instead of a new contract.</p>
<p>&ldquo;The most convincing part of this was the fact that we worked 14 months past the expiration of the contract, and all through that 14 months we were continually bargaining with Pittston, trying to reach some kind of a compromise agreement with them and they continued to say no,&rdquo; Roberts said.</p>
<p>&ldquo;All of that was a clear indication to us that what they were hoping to do was get to a point where they could implement a last best offer that would have been devastating to the workers, broke the union at that point in time, and then they could have been free to have whatever terms and conditions of employment that they desired,&rdquo; he said.</p>
<p>The Times-News contacted Pittston&rsquo;s office in Abingdon, and was told the company would not comment on the strike.</p>
<p>But 20 years ago, Pittston President Mike Odom suggested the union&rsquo;s mission was to &ldquo;crush&rdquo; the company.</p>
<p>&ldquo;We&rsquo;re up against a major union that&rsquo;s got $100 million to crush us, and that&rsquo;s their objective &mdash; to crush us,&rdquo; Odom said at the time.</p>
<p><strong>Civil disobedience</strong></p>
<p>Soon after the strike began, Pittston cancelled health benefits for retirees and widows. The company said it couldn&rsquo;t afford the cost, but union members saw it as a betrayal.</p>
<p>Union organizers rallied their troops, encouraging nonviolent tactics such as civil disobedience that was used in the civil rights movement.</p>
<p>Roberts said the union drew support from the local communities &mdash; not only because it used nonviolent measures &mdash; but because the company had cut off retiree healthcare, after union members had worked 14 months without a contract.</p>
<p>Roberts said the community viewed Pittston&rsquo;s move to cut retiree healthcare as &ldquo;totally unnecessary.&rdquo;</p>
<p>&ldquo;They&rsquo;d taken advantage of people who had given their entire lives to the industry,&rdquo; Roberts said. &ldquo;People supported the fact that we were trying to do this in a nonviolent manner, that we were fighting for the healthcare of these pensioners.</p>
<p>&ldquo;Striking miners were standing up not just for themselves, but for their fathers and uncles and grandfathers who were too old to fight for themselves.&rdquo;</p>
<p>While many of the striking miners used nonviolent tactics in the dispute, some violence was reported, including rock throwing, vandalism, and even homemade bombs. Jack rocks &mdash; a jagged edged device designed to flatten a vehicle&rsquo;s tires &mdash; were a common site along coal truck routes.</p>
<p>Some miners denied taking part in violent measures, saying company guards and replacement workers, called &ldquo;scabs,&rdquo; were distributing jack rocks along the roads to implicate striking miners.</p>
<p>Union members were arrested, jailed and fined. By the end of the strike, 4,000 people had been carted off by police.</p>
<p><strong>Camp Solidarity</strong></p>
<p>Thousands of supporters &mdash; many of them members of other unions across the country &mdash; made their way to Southwestern Virginia to stand side by side with miners on the picket lines.</p>
<p>But they had no place to stay.</p>
<p>Union supporters decided to convert a recreational area near Castlewood into a central hub, calling it Camp Solidarity. Volunteers used an existing snack bar to prepare meals for folks coming into town, and built a shelter with bunk beds where people could sleep.</p>
<p>A large field provided ample parking space for visitors and supporters with campers.</p>
<p>Shirley Hall, whose husband James Hall was among striking miners, served as one of the camp&rsquo;s volunteers, who called themselves &ldquo;Freedom Fighters.&rdquo;</p>
<p>&ldquo;We had like a phone bank setup and when we needed food, we would call certain people and say, &lsquo;Hey we need you to bake a cake, or fix a pot of beans of whatever,&rsquo; and we&rsquo;d pick it up the next day,&rdquo; Hall said.</p>
<p>Organizers of Camp Solidarity assigned jobs to various volunteers. Some would get water, some would get food, and some would get firewood for the camp&rsquo;s huge grill.</p>
<p>Everyone worked together like a well-oiled machine, striving for a common goal.</p>
<p>&ldquo;It was unreal, the support that we had from the people, the community, the churches, other unions. It was amazing,&rdquo; Hall said.</p>
<p>She said union supporters came to Camp Solidarity from across the country and even from around the world. Visitors arrived from as far away as Hawaii, Russia, Germany, Italy, France, Scotland, and Australia.</p>
<p>Camp Solidarity served as a the central point for striking miners and supporters.</p>
<p>And each week, huge rallies with speeches and music were held in St. Paul to encourage union members.</p>
<p>&ldquo;It was a very exciting time, and it paid off in the long run,&rdquo; Shirley Hall said.</p>
<p><strong>Moss 3</strong></p>
<p>Several months into the strike, union officials felt they needed to plan something spectacular to rally their troops and to make the company realize they weren&rsquo;t about to give up.</p>
<p>By that time, union members and the union itself had been fined thousands of dollars, and thousands of people had been arrested in civil disobedience demonstrations.</p>
<p>Union members were getting tired.</p>
<p>&ldquo;It was the union&rsquo;s opinion that there had been a lull in the activity at that time. People were getting a little despondent because there hadn&rsquo;t been a lot of activity, and so the union decided that something dramatic had to occur,&rdquo; Roberts said.</p>
<p>While the union had used the civil disobedience lessons of the civil rights movement up to then, it decided to look back further to the 1930s, to the sit-down strikes that occurred in the early days of the Congress of Industrial Organizations (CIO).</p>
<p>&ldquo;We looked at that and thought if there were someway to occupy a facility of Pittston&rsquo;s and pull this off without them knowing it was coming, and keep this non-violent, then that would be a dramatic statement to Pittston that this strike wasn&rsquo;t over, it wasn&rsquo;t ever going to be over until there was a fair settlement that protected the workers and allowed them to return with dignity and respect, and also protected the pensioner&rsquo;s healthcare and protected their income once they retired,&rdquo; Roberts said.</p>
<p>The plan was crafted behind closed doors. Union officials told members when and where to be, but they didn&rsquo;t divulge what was about to happen. Some 99 striking miners, who had volunteered to participate in whatever way they could, were selected from various parts of the strike zone, including Virginia, West Virginia and Kentucky.</p>
<p>&ldquo;They weren&rsquo;t briefed until they got to Virginia, then they were told what was going to happen, and they were given the opportunity to back out if they wanted to, but they chose not to,&rdquo; Roberts said.</p>
<p>When the caravans rolled in front of Pittston&rsquo;s Moss 3 Preparation Plant, the 99 union members and one minister knew the mission: They would walk with hands high in the air into the plant, telling guards they were nonviolent.</p>
<p>Outside, union organizers gathered about 1,500 members and supporters in front of the plant. They sat in the road, blocking traffic in and out.</p>
<p>&ldquo;Incidentally we had timed this, because we knew when the state police were changing shifts, so there wasn&rsquo;t a large contingency of state troopers there at the time, so this went off without any problems,&rdquo; Roberts said. &ldquo;When the police arrived, we had control of the plant.&rdquo;</p>
<p>For several days, the union occupied Moss 3, while supporters held vigil outside. At one point, as many as 5,000 union supporters had gathered in front of the plant, waving UMWA signs and cheering the men inside. Supporters traveled to the site from New York, Connecticut, Indiana, Illinois and beyond, representing all different types of unions and the AFL-CIO.</p>
<p>&ldquo;Machinists were sleeping on the ground, Teamsters came from all over. They were all willing to do whatever we wanted them to do,&rdquo; Roberts said.</p>
<p>By Wednesday, union officials, deciding they&rsquo;d made their point, ended the occupation at Moss 3. Union members who had been holed up inside the plant since Sunday marched outside, got into pickup trucks, and disappeared.</p>
<p><strong>Stump to victory</strong></p>
<p>By the fall of 1989, the union was facing thousands of dollars in fines &mdash; many of them imposed by Judge Donald McGlothlin Jr., Virginia circuit court judge for Russell County.</p>
<p>Hoping to make a statement, the union launched a grassroots political campaign to unseat McGlothlin&rsquo;s father, longtime legislator Donald McGlothlin Sr., and union officials enticed UMWA District 28 President Jackie Stump to run a write-in campaign against the elder McGlothlin.</p>
<p>After a massive door-to-door campaign by union members, Stump defeated McGlothlin by more than a two-to-one margin.</p>
<p>UMWA officials viewed the election as a referendum on the strike &mdash; and they were the victors.</p>
<p><strong>Government intervention</strong></p>
<p>The bitter labor dispute didn&rsquo;t just capture local headlines &mdash; it drew the attention of the nation. Activists including civil rights leader Rev. Jesse Jackson, Farmworkers founder Cesar Chavez, and then-AFL-CIO President Lane Kirkland all traveled to the coalfields to talk with striking miners first hand.</p>
<p>Secretary of Labor Elizabeth Dole also visited strike lines, and eventually appointed former Labor Secretary William Usery to serve as special mediator between the two sides.</p>
<p>Usery met with union and company officials day and night to hammer out an agreement. A settlement was announced in early 1990, and was later ratified by UMWA members.</p>
<p>After the strike ended, the Supreme Court threw out most of the fines that had been imposed by the state judges. However, union officials were ordered to participate in 10,000 hours of community service activities.</p>
<p>For his part, Roberts said he and some other union representatives traveled to Lee County and worked alongside U.S. District Judge Glen Williams &mdash; who had imposed some of those fines against the union &mdash; to help clean up a river.</p>
<p>&ldquo;I think Judge Williams &mdash; we can&rsquo;t say we liked every decision he made, but we all had respect for him at the end of the day. It was very good day for all of us,&rdquo; Roberts recalled.</p>
<p>In Washington, lawmakers passed the Coal Act, guaranteeing healthcare for all union pensioners. That law, Roberts said, was a direct result of the Pittston strike.</p>
<p>Roberts said the strike was important to the union on several fronts.</p>
<p>&ldquo;I think had Pittston prevailed here, I think we would have seen the failure of our pension plans for one thing,&rdquo; Roberts said. &ldquo;The second thing, I think the pensioners&rsquo; healthcare would have collapsed not only at Pittston but everywhere.&rdquo;</p>
<p>He said lots of &ldquo;good things came out of that strike.&rdquo;</p>
<p>&ldquo;I still believe it&rsquo;s probably the most effective strike that&rsquo;s taken place in at least the last 50 years and maybe longer,&rdquo; Roberts said.</p>
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<title>GM's plant decision brings  uncertainty to Tennessee</title>
<link>http://www.timesnews.net/article.php?id=9014825</link>
<guid>http://www.timesnews.net/article.php?id=9014825</guid>
<pubDate>Fri, 26 Jun 2009 00:00:00 EDT</pubDate>
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<p>SPRING HILL, Tenn. &mdash; Workers at General Motors&rsquo; soon-to-be-idled assembly plant in Tennessee held out hope for a reprieve, but now it&rsquo;s back to the waiting game.</p>
<p>GM&rsquo;s decision Friday to build a new small car at a Michigan plant allowed that economically battered state to rejoice, while the announcement is likely a death knell for the third of the finalists in Janesville, Wis.</p>
<p>Officials in Tennessee now hope that the Spring Hill plant on the outskirts of Nashville will be assigned a new product before it is mothballed.</p>
<p>Maury County Mayor James Bailey said he was frustrated that all the work state and local officials have done to help develop the plant over the decades appears to &ldquo;have been tossed aside and forgotten.&rdquo;</p>
<p>&ldquo;The Spring Hill facility has been sacrificed, and its future has been put in jeopardy,&rdquo; Bailey said.</p>
<p>Mike Herron, chairman of United Auto Workers Local 1853, said Spring Hill was the only plant that could have built the new car without any investment.</p>
<p>&ldquo;It&rsquo;s not like we have an old facility with dilapidated equipment and a work force that won&rsquo;t do anything,&rdquo; he said.</p>
<p>Michigan, Wisconsin and Tennessee all offered incentives to General Motors Corp. to lure the plant, but neither the automaker nor state officials disclosed details about the incentive packages.</p>
<p>&ldquo;All three states made very attractive offers,&rdquo; Troy Clarke, GM&rsquo;s president for North America, said in a conference call with reporters. &ldquo;The folks in Michigan were very creative and brought a whole package.&rdquo;</p>
<p>The company said it would use an idled midsize car plant in Orion Township, about 40 miles north of Detroit, to assemble small and compact cars, including a subcompact model based on the Chevrolet Spark that is set to go on sale in Europe next year.</p>
<p>GM said it expects to start retooling in late 2010 and run two shifts at the plant by 2011, producing 160,000 vehicles annually. The move will save 1,200 jobs at Orion, plus 200 more at a nearby parts stamping plant.</p>
<p>Clarke said the retooling would cost the company $600 million to $800 million.</p>
<p>Herron said recent investments in the Spring Hill plant, which was originally built to make Saturns, approached $1 billion. GM retooled the plant to begin making the Chevrolet Traverse crossover vehicle in October, and the automaker installed a new paint shop and steel stamping operations.</p>
<p>&ldquo;This is a site that has it all,&rdquo; Herron said. &ldquo;It&rsquo;s the one site in America where you can come in and roll raw materials in the front door and roll finished product out the back.&rdquo;</p>
<p>Herron said he had no information on whether the plant could be sold to companies buying the brands GM is shedding in bankruptcy protection, like Saturn or Hummer.</p>
<p>Tennessee has been a recent hotbed of automobile industry activity. Germany&rsquo;s Volkswagen AG is building a $1 billion assembly plant in Chattanooga, and Japan&rsquo;s Nissan Motor Co. this week secured a $1.6 billion federal loan to build electric cars and battery packs to power them at its Tennessee assembly complex.</p>
<p>In Wisconsin, officials are left to discuss options for the GM-owned plant and its 4 million square feet of space.</p>
<p>The plant is technically on &ldquo;stand by&rdquo; status and GM might bring production back in 2011 if business improves, said Douglas Venable, Janesville&rsquo;s economic development director, but city officials may encourage the automaker to sell so other businesses can bring in jobs.</p>
<p>&ldquo;The uncertainty is the difficult part,&rdquo; Venable said. &ldquo;At some point families have to decide what they&rsquo;re going to do, if they&rsquo;re going to transfer elsewhere. And the business community, it&rsquo;s hard for them to make investments not knowing if GM is staying or going.&rdquo;</p>
<p>One former autoworker, 47-year-old Vicki Sathre of Janesville, said she had hoped GM would reopen the plant but suspected the stamping facilities near the Michigan site made it a more logical choice.</p>
<p>Sathre, who took a $20,000 buyout in April after 12 years at the plant, said she doesn&rsquo;t put much stock in GM&rsquo;s claims that it might reopen the Janesville site if demand for vehicles improves.</p>
<p>&ldquo;You can&rsquo;t live on a wish and a dream,&rdquo; said Sathre, who is studying to become a dental assistant.</p>
<p>Spring Hill officials expect about 500 of the plant&rsquo;s 3,000 workers to stay on the job doing engine, stamping and plastic work after Traverse production ends around Thanksgiving.</p>
<p>Friday&rsquo;s decision could encourage more workers to take buyout of early retirement offers by the end of next month, Herron said.</p>
<p>But Bernard Burns, 60, who has worked at the Spring Hill plant since 1991, said retirement isn&rsquo;t an option for him. Burns said his 14-year-old son has recently undergone cancer treatments and he doesn&rsquo;t want to lose his family&rsquo;s health benefits.</p>
<p>&ldquo;Hopefully I&rsquo;ll have enough seniority&rdquo; to remain at the plant, he said. &ldquo;But you have to go where the money is.&rdquo;</p>
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<title>VCEDA marks end of second decade bringing jobs to Southwest Virginia</title>
<link>http://www.timesnews.net/article.php?id=9014824</link>
<guid>http://www.timesnews.net/article.php?id=9014824</guid>
<pubDate>Fri, 26 Jun 2009 00:00:00 EDT</pubDate>
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<p>LEBANON &mdash; At the conclusion of two decades as Southwest Virginia&rsquo;s economic development engine, the Virginia Coalfield Economic Development Authority looks back on $117 million in funding for more than 200 regional projects to help bring nearly 12,000 jobs to the region.</p>
<p>&ldquo;In these 20 years VCEDA has had a hand in helping to bring more than $2 billion in announced investments to the region, including new opportunities in information technology, manufacturing, energy and other basic job-creating operations,&rdquo; Jonathan Belcher, VCEDA executive director, told the board of directors during the board&rsquo;s most recent meeting in Lebanon.</p>
<p>Belcher outlined economic development highlights for each of the seven coal-producing counties of Virginia, including the 3,000-acre Southern Gap Business Park in Buchanan County due for a ribbon cutting later this year for its first business occupant. That occupant is information technology support center Sykes Enterprises &mdash; operator of a similar facility in Wise County &mdash; which will bring 400 jobs to the region.</p>
<p>VCEDA&rsquo;s primary direction in recent years is promotion of its &ldquo;Virginia e-Region&rdquo; strategy to focus on key competitive advantages of the region in electronic information technology, energy, education and emerging technologies.</p>
<p>Former Gov. Gerald Baliles, who signed the legislation approved by the Virginia General Assembly two decades ago to create VCEDA, also addressed the board and said regions need to recognize weaknesses in order to build on strengths.</p>
<p>&ldquo;Business executives have choices about where to locate their companies,&rdquo; Baliles said. &ldquo;It&rsquo;s important for a region to know your vulnerabilities so you can improve your strengths and show prospects the quality of your work force.&rdquo;</p>
<p>Former Delegate Ford C. Quillen of Scott County introduced the enacting legislation in 1988 to create VCEDA. He said regional cooperation was a winning strategy in Richmond.</p>
<p>&ldquo;We needed to do more for ourselves in economic development in Southwest Virginia, and we needed to provide a funding source to help the counties work together to attract industry and jobs,&rdquo; Quillen said.</p>
<p>The legislation set aside funding from severance taxes from the coal and natural gas industries to give VCEDA the resources needed to make low-interest loans or grants to help the counties and city of Norton diversify the economy and attract jobs to the region.</p>
<p>&ldquo;Looking back, having the money earmarked for economic development has served the purpose,&rdquo; Quillen said.</p>
<p>Alpha Natural Resources CEO Mike Quillen, the first chairman of VCEDA now serving as treasurer, said the authority has been &ldquo;very diligent in how the funds are distributed&rdquo; for projects throughout the region.</p>
<p>&ldquo;VCEDA is unique, and it gives our region a benefit that no other part of the commonwealth has,&rdquo; he said.</p>
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<title>Stimulus fattens household incomes; people sock much of it away in savings</title>
<link>http://www.timesnews.net/article.php?id=9014815</link>
<guid>http://www.timesnews.net/article.php?id=9014815</guid>
<pubDate>Fri, 26 Jun 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p class="ap-story-p">WASHINGTON (AP) -- Households pushed their savings rate to the highest level in more than 15 years in May as a big boost in incomes from the government's stimulus program was devoted more to bolstering nest eggs than increased spending.</p>
<p class="ap-story-p">The Commerce Department said Friday that consumer spending rose 0.3 percent in May, in line with expectations. But incomes jumped 1.4 percent, the biggest gain in a year and easily outpacing the 0.3 percent increase that economists expected.</p>
<p class="ap-story-p">The savings rate, which was hovering near zero in early 2008, surged to 6.9 percent, the highest level since December 1993.</p>
<p class="ap-story-p">The income increase reflected temporary factors relating to the $787 billion economic stimulus program that President Barack Obama pushed through Congress in February to fight the recession. That program included one-time payments to people receiving Social Security and other government pension benefits.</p>
<p class="ap-story-p">The stimulus package also featured reductions in payroll tax withholding designed to get people to start spending more money and boost the economy. Those factors helped increase after-tax incomes 1.6 percent in May. However, without the special factors, after-tax incomes would have risen just 0.2 percent.</p>
<p class="ap-story-p">The savings rate, which is a percentage of disposable income, rose to 6.9 percent from 5.6 percent in April. Last month's savings rate was far above recent annual rates, which dipped below 1 percent from 2005 through 2007 as a booming economy and soaring home prices pushed Americans to spend most of what they earned.</p>
<p class="ap-story-p">Those factors have been reversed amid the longest recession since World War II. Triggered by a housing bust, the downturn has depressed home prices by the largest amounts since the Great Depression.</p>
<p class="ap-story-p">Economists believe that a rise in personal savings rate is a good development in the long run, but they worry that it could make the rebound from the recession slower than it otherwise would have been.</p>
<p class="ap-story-p">However, the 0.3 percent rise in spending in May was viewed as encouraging after no change in April and a 0.3 percent drop in March. April had originally been reported as a drop of 0.1 percent. It was the best monthly performance since spending rose by 0.4 percent in February.</p>
<p class="ap-story-p">Consumer spending is closely watched because it accounts for about 70 percent of total economic activity. Economists are hoping that improved spending will help support a rebound in economic activity.</p>
<p class="ap-story-p">The government reported Wednesday that the overall economy, as measured by the gross domestic product, shrank at an annual rate of 5.5 percent in the January-March quarter, slightly less severe than the 5.7 percent decline estimated a month ago.</p>
<p class="ap-story-p">However, the 5.5 percent drop in the first quarter followed a 6.3 percent decline in the last three months of last year, the worst six-month performance for the GDP in more than a half-century.</p>
<p class="ap-story-p">Economists believe that the 0.3 percent rise in spending in May will help bolster the economy in the second quarter and will translate into a smaller drop in GDP of around 2 percent during this period. Economists believe that GDP will begin growing again in the second half of this year, signaling an end to the recession that began in December 2007.</p>
<p class="ap-story-p">However, the rebound is expected to be subdued. That's because unemployment, already at a 25-year high of 9.4 percent, is expected to continue rising, pushing worried households to save even more against the threat of further layoffs.</p>
<p class="ap-story-p">Reduced spending has been tough on the nation's retailers, who have been forced to lay off workers and shut stores. Drugstore operator Rite Aid Corp. said Wednesday that it narrowed its fiscal first-quarter loss by closing stores and trimming other operating costs as it works to eliminate $6 billion in debt.</p>
<p class="ap-story-p">Still, the weak economy has kept a lid on prices. An inflation gauge tied to consumer spending edged up 0.1 percent in May compared with April.</p>]]></description>
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<title>GM decision to idle about 2,500 Tennessee workers at Spring Hill plant</title>
<link>http://www.timesnews.net/article.php?id=9014804</link>
<guid>http://www.timesnews.net/article.php?id=9014804</guid>
<pubDate>Thu, 25 Jun 2009 00:00:00 EDT</pubDate>
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<p>CHATTANOOGA, Tenn. &mdash; A decision by General Motors to build its new small car in Michigan leaves about 2,500 employees at the company&rsquo;s Spring Hill plant facing unemployment.</p>
<p>A person briefed on the decision said Thursday that GM will build its new subcompact car in Orion Township, Mich.</p>
<p>UAW Local 1853 spokesman Todd Horton in Spring Hill said &ldquo;no one is going to comment until we get the official announcement.&rdquo; He said a news conference would be held Friday morning at the UAW union hall in Spring Hill to discuss employees&rsquo; futures.</p>
<p>The Spring Hill plant recently underwent a more than $600 million overhaul to build the Chevrolet Traverse crossover. Before it was identified as one of three facilities competing for production of the new small car, it was scheduled to go on standby later this year.</p>
<p>&ldquo;I am going to remain optimistic,&rdquo; said Cliff Goff, 53, a longtime employee at Spring Hill who has worked for GM since 1975. &ldquo;I am a person who believes you have got a great work force. You have a great plant. General Motors is separating the bad GM from the good and reinventing themselves and looking for a new path to take. I would think they understand they have a valuable asset there.&rdquo;</p>
<p>He said in a telephone interview that a &ldquo;decision to do nothing with that plant would have a serious impact on our workers and our community.&rdquo;</p>
<p>City Administrator Jim Smith said Thursday evening that the town is &ldquo;down but not out. It&rsquo;ll slow us down in the short run, but this plant is extremely viable. I anticipate we&rsquo;ll be making cars here again.&rdquo;</p>
<p>Gov. Phil Bredesen&rsquo;s spokeswoman, Lydia Lenker, said late Thursday that their office had not been notified of GM&rsquo;s decision.</p>
<p>Bredesen hours earlier said Tennessee&rsquo;s bid to get Spring Hill selected was &ldquo;nothing like&rdquo; what the bankrupt automaker had originally sought. The governor told reporters earlier this month that his impression from meetings with GM officials was that the company wanted a large cash payment and not long-term tax incentives.</p>
<p>Lamar Alexander and Bob Corker, Tennessee&rsquo;s two U.S. senators, did not respond for comment Thursday.</p>
<p>GM announced when it filed for bankruptcy protection June 1 that the Orion Township and Spring Hill plants would go on standby status later this year, meaning workers could be called back if the company needs to increase production. The other plant competing for the small car work, Janesville, Wis., already closed in April.</p>
<p>Employees in Spring Hill are facing the uncertainty two decades after GM launched Saturn as its import-fighting, small car division in Tennessee.</p>
<p>GM built the Spring Hill facility to make sure Saturn wasn&rsquo;t too heavily influenced by Detroit. They billed it as a &ldquo;different kind of car company,&rdquo; with a no-haggle sales technique and buyer loyalty gimmicks like the folksy homecoming picnics that drew owners to the Tennessee plant site. Initially, Saturn was a separate division of GM.</p>
<p>The separation was short-lived, though, and GM soon absorbed the Saturn leadership back into its headquarters.</p>
<p>Just two years ago, after GM made a failed attempt to go upscale with bigger Saturns, the Spring Hill plant about 40 miles south of Nashville lost the brand. GM has announced the sale of the Saturn brand to auto racing titan Roger Penske&rsquo;s Penske Automotive Group Inc., which plans to continue selling GM-made vehicles but eventually partner with foreign carmakers.</p>
<p>Since an overhaul of the Spring Hill plant, spurred partly by state tax credits, workers there have been building the eight-seat Chevrolet Traverse.</p>
<p>GM is planning a new subcompact to compete with foreign models and has decided to build it in the U.S. instead of China. (AP)</p>
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<title>Johnson City unemployment rate lowest in Tri-Cities</title>
<link>http://www.timesnews.net/article.php?id=9014793</link>
<guid>http://www.timesnews.net/article.php?id=9014793</guid>
<pubDate>Thu, 25 Jun 2009 00:00:00 EDT</pubDate>
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<p>Johnson City is the only one of Northeast Tennessee&rsquo;s four largest cities where the unemployment rate did not go into double digits during May. That city&rsquo;s unadjusted rate was 8.4 percent &mdash; up from 7.7 percent last month &mdash; according to data released Thursday by the Tennessee Department of Labor and Workforce Development.</p>
<p>Morristown continued to have the dubious distinction of having the region&rsquo;s highest jobless rate at 18.6 percent, up from 17.8 percent in April.</p>
<p>Kingsport&rsquo;s jobless rate increased from 11.6 percent to 12.6 percent, while Bristol&rsquo;s rate was 10.6 percent vs. 9.0 percent last month.</p>
<p>County non-seasonally adjusted unemployment rates for May show that the rate increased in 88 counties, decreased in six counties, and remained the same in one county.</p>
<p>Washington and Sullivan counties were among the 10 counties with the lowest rates, while Greene County was among the state&rsquo;s 10 counties with the highest jobless rates.</p>
<p>The May rates for area counties are:</p>
<p>&bull; Greene County &mdash; 15.5 percent.</p>
<p>&bull; Hawkins County &mdash; 13.1 percent.</p>
<p>&bull; Hamblen County &mdash; 12.7 percent.</p>
<p>&bull; Unicoi County &mdash; 12.1 percent.</p>
<p>&bull; Carter County &mdash; 9.6 percent.</p>
<p>&bull; Sullivan County &mdash; 9.1 percent.</p>
<p>&bull; Washington County &mdash; 8.6 percent.</p>
<p>Tennessee&rsquo;s seasonally adjusted unemployment rate for May was 10.7 percent, 0.8 percentage point higher than the April rate of 9.9 percent. The United States&rsquo; unemployment rate for the month of May was 9.4 percent.</p>
<p>On the Metropolitan Statistical Area level, the Johnson City rate was 9.3 percent, and the Kingsport-Bristol TN-VA rate was 9.8 percent.</p>
<p>The Combined Statistical Area of Johnson City, Kingsport-Bristol TN-VA showed a rate of 9.6 percent for May.</p>
<a href=" http://www.tennessee.gov/labor-wfd/labor_figures/may2009county.pdf " target="_blank">CLICK HERE </a>for the full Tennessee May unemployment report.</span></span></div>
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<title>NFS officials happy with new $209M contract</title>
<link>http://www.timesnews.net/article.php?id=9014783</link>
<guid>http://www.timesnews.net/article.php?id=9014783</guid>
<pubDate>Thu, 25 Jun 2009 00:00:00 EDT</pubDate>
<description><![CDATA[<p>    ERWIN &mdash; Nuclear Fuel Services is thrilled that it has received a $209 million contract from the federal government to change 12 tons of highly enriched uranium into a low-enriched form.<br /><br />    This is the latest contract NFS has received to convert the uranium and comes as previous deals come closer to expiring. Spokeswoman Lauri Turpin said the new work should be completed in four years.<br /><br />    &ldquo;Obviously, any time we can bring business into the community and provide a stable work environment for our employees, we&rsquo;re happy,&rdquo; Turpin said Wednesday. &ldquo;It&rsquo;s always a great thing to get more business.&rdquo;<br /><br />    She said the contract will not result in any new employees. The work will be performed at the NFS plant, but some expertise and technical resources from Babcock &amp; Wilcox, NFS&rsquo; parent corporation, will be available, Turpin said.<br /><br />    On Tuesday, the federal government awarded the contract to NFS, which will convert the uranium for use in commercial reactors. According to the Associated Press, the highly enriched uranium will come from surplus at the Y-12 nuclear weapons plant in Oak Ridge.<br /><br />    Once NFS completes its work, the low-enriched form will be shipped to Westinghouse Electric Co.&rsquo;s Columbia Fuel Fabrication Facility in South Carolina, the AP said. It will be held in reserve for utilities contracting for reactor fuel frm a plutonium mixed-oxide processing plant being built at the Savannah River site.<br /><br />    Turpin said NFS is a subcontractor on this project for WesDyn.<br />    NFS President Dave Kudsin said in an interview in February that the company was working on a bid for additional downblending work. Turpin said the contract NFS received Tuesday was the one to which Kudsin referred then.<br />    While the focus for many people will be on jobs and the financial impact on the community, NFS also views this project in national security terms, Turpin said. By working on converting the uranium, NFS will be working with the National Nuclear Security Administration, which actually awarded the contract, on nonproliferation, she said.<br /><br />    NFS has been known primarily for its manufacturing of fuel for the Navy, but the company in recent years has become involved in the conversion of uranium forms, a process known as downblending.<br /><br />    &ldquo;Downblending was not our only contract, but we&rsquo;re glad to be able to continue with that work,&rdquo; Turpin said.<br /><br />    The most well-known of these projects is the Blended Low Enriched Uranium project. In it, 23 tons of highly enriched uranium is converted to a lowenriched mix and sent eventually to Browns Ferry nuclear power plant in Alabama. NFS has partnered with Areva, which has a facility next door, on this project.<br /><br />    Turpin declined to disclose the exact ending date for that project for security reasons but said, &ldquo;We are nearing the end of that cycle.&rdquo; NFS received that contract in 2001.<br /><br />    In 2007, NFS received a contract from the U.S. Energy Department to convert 17.4 metric tons of highly enriched uranium to 290 metric tons of low-enriched uranium. That material also has been sent to Westinghouse&rsquo;s plant in Columbia, S.C. Turpin said NFS is on schedule to be completed by the end of 2010.</p>]]></description>
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