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House renews bid to improve gov't response on info requests

Written By Unknown on Rabu, 25 Maret 2015 | 23.14

WASHINGTON — A House committee is renewing efforts to make government agencies more responsive to freedom-of-information requests.

The House unanimously passed a similar effort last year. But objections by Democratic Sen. Jay Rockefeller of West Virginia kept it from becoming law.

The House oversight committee on Wednesday endorsed a bill that would make it harder for federal agencies to reject requests filed under the Freedom of Information Act. Agencies would have to show that the requested disclosure is barred by law or would cause specific harm to interests protected by the law.

Rockefeller has retired from the Senate. In 2014 he cited concerns that companies might use time-consuming information requests to delay investigations into their conduct.

The Associated Press is a member of the Sunshine in Government Initiative, which supports the legislation.


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Vermont city losing 600K-plus gallons of water daily in leak

RUTLAND, Vt. — The city of Rutland, Vermont, is losing more than 600,000 gallons of water a day because of a leak.

The Rutland Herald reports that officials are trying to figure out the source of the leak. They say residents have experienced a drop in water pressure since Saturday.

Public Works Commissioner Jeffrey Wennberg says the water isn't running through the streets and doesn't appear to be finding its way into the sewer. He says that means it may be going into a stream.

Wennberg says workers are inspecting valves, hydrants and vacant buildings. He planned to isolate and check the three transmission lines running from the water plant into the city of about 16,500 residents.

He says the leak isn't an immediate threat to the city's water supply.

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Information from: Rutland Herald, http://www.rutlandherald.com/


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Feds to investigating safety of Lumber Liquidators flooring

RICHMOND, Va. — The U.S. Consumer Product Safety Commission is investigating the safety Lumber Liquidators laminate flooring made in China.

Chairman Elliot F. Kaye said Wednesday the agency is taking the issue seriously and is working to get answers for consumers.

The move comes after a report on CBS' "60 Minutes" earlier this month that said that Lumber Liquidators' Chinese-made laminate flooring contains high levels of formaldehyde, a carcinogen.

The Toano, Virginia-based discount hardwood flooring retailer has said it complies with applicable regulations for its products and has reassured consumers that its flooring is safe.

Two senators have since called for investigations following the broadcast.

Lumber Liquidators Holdings Inc. has more than 350 locations in North America.


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Lowell woman sentenced for tax fraud scheme

BOSTON — A Lowell woman who helped run a family-owned temporary employment agency has been sentenced to more than six years in federal prison for defrauding the IRS of more than $5 million in tax revenue.

Margaret Mathes sought leniency because she had recently been diagnosed with possible Alzheimer's disease, but was instead punished with an enhanced sentence for greatly exaggerating her symptoms.

The Sun  reports that in a scheme that spanned eight years, the 67-year-old Mathes and her family, owners of the former International Temp Agency and later JP Company, avoided paying taxes by paying workers under the table to avoid records.

Between 2004 and 2009, Mathes and her family reported a $2.2 million employee payroll, but hid an additional $25.8 million in wages. She had pleaded guilty in August.

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Information from: The (Lowell, Mass.) Sun, http://www.lowellsun.com


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AP Investigation: Slavery taints global supply of seafood

BENJINA, Indonesia — The Burmese slaves sat on the floor and stared through the rusty bars of their locked cage, hidden on a tiny tropical island thousands of miles from home.

Just a few yards away, other workers loaded cargo ships with slave-caught seafood that clouds the supply networks of major supermarkets, restaurants and even pet stores in the United States.

But the eight imprisoned men were considered flight risks — laborers who might dare run away. They lived on a few bites of rice and curry a day in a space barely big enough to lie down, stuck until the next trawler forces them back to sea.

"All I did was tell my captain I couldn't take it anymore, that I wanted to go home," said Kyaw Naing, his dark eyes pleading into an Associated Press video camera sneaked in by a sympathetic worker. "The next time we docked," he said nervously out of earshot of a nearby guard, "I was locked up."

Here, in the Indonesian island village of Benjina and the surrounding waters, hundreds of trapped men represent one of the most desperate links criss-crossing between companies and countries in the seafood industry. This intricate web of connections separates the fish we eat from the men who catch it, and obscures a brutal truth: Your seafood may come from slaves.

The men the AP interviewed on Benjina were mostly from Myanmar, also known as Burma, one of the poorest countries in the world. They were brought to Indonesia through Thailand and forced to fish. Their catch was then shipped back to Thailand, where it entered the global stream of commerce.

Tainted fish can wind up in the supply chains of some of America's major grocery stores, such as Kroger, Albertsons and Safeway; the nation's largest retailer, Wal-Mart; and the biggest food distributor, Sysco. It can find its way into the supply chains of some of the most popular brands of canned pet food, including Fancy Feast, Meow Mix and Iams. It can turn up as calamari at fine dining restaurants, as imitation crab in a California sushi roll or as packages of frozen snapper relabeled with store brands that land on our dinner tables.

In a year-long investigation, the AP talked to more than 40 current and former slaves in Benjina. The AP documented the journey of a single large shipment of slave-caught seafood from the Indonesian village, tracking it by satellite to a gritty Thai harbor. Upon its arrival, AP journalists followed trucks that loaded and drove the seafood over four nights to dozens of factories, cold storage plants and the country's biggest fish market.

The tainted seafood mixes in with other fish at a number of sites in Thailand, including processing plants. U.S. Customs records show that several of those Thai factories ship to America. They also sell to Europe and Asia, but the AP traced shipments to the U.S., where trade records are public.

By this time, it is nearly impossible to tell where a specific fish caught by a slave ends up. However, entire supply chains are muddied, and money is trickling down the line to companies that benefit from slave labor.

The major corporations contacted would not speak on the record but issued statements that strongly condemned labor abuses. All said they were taking steps to prevent forced labor, such as working with human rights groups to hold subcontractors accountable.

Several independent seafood distributors who did comment described the costly and exhaustive steps taken to ensure their supplies are clean. They said the discovery of slaves underscores how hard it is to monitor what goes on halfway around the world.

Santa Monica Seafood, a large independent importer that sells to restaurants, markets and direct from its store, has been a leader in improving international fisheries, and sends buyers around the world to inspect vendors.

"The supply chain is quite cloudy, especially when it comes from offshore," said Logan Kock, vice president for responsible sourcing, who acknowledged that the industry recognizes and is working to address the problem. "Is it possible a little of this stuff is leaking through? Yeah, it is possible. We are all aware of it."

The slaves interviewed by the AP had no idea where the fish they caught was headed. They knew only that it was so valuable, they were not allowed to eat it.

They said the captains on their fishing boats forced them to drink unclean water and work 20- to 22-hour shifts with no days off. Almost all said they were kicked, whipped with toxic stingray tails or otherwise beaten if they complained or tried to rest. They were paid little or nothing, as they hauled in heavy nets with squid, shrimp, snapper, grouper and other fish.

Some shouted for help over the deck of their trawler in the port to reporters, as bright fluorescent lights silhouetted their faces in the darkness.

"I want to go home. We all do," one man called out in Burmese, a cry repeated by others. The AP is not using the names of some men for their safety. "Our parents haven't heard from us for a long time. I'm sure they think we are dead."

Another glanced fearfully over his shoulder toward the captain's quarters, and then yelled: "It's torture. When we get beaten, we can't do anything back. ... I think our lives are in the hands of the Lord of Death."

In the worst cases, numerous men reported maimings or even deaths on their boats.

"If Americans and Europeans are eating this fish, they should remember us," said Hlaing Min, 30, a runaway slave from Benjina. "There must be a mountain of bones under the sea. ... The bones of the people could be an island, it's that many."

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For Burmese slaves, Benjina is the end of the world.

Roughly 3,500 people live in the town that straddles two small islands separated by a five-minute boat ride. Part of the Maluku chain, formerly known as the Spice Islands, the area is about 400 miles north of Australia, and hosts small kangaroos and rare birds of paradise with dazzling bright feathers.

Benjina is impossible to reach by boat for several months of the year, when monsoon rains churn the Arafura Sea. It is further cut off by a lack of Internet access. Before a cell tower was finally installed last month, villagers would climb nearby hills each evening in the hope of finding a signal strong enough to send a text. An old landing strip has not been used in years.

The small harbor is occupied by Pusaka Benjina Resources, whose five-story office compound stands out and includes the cage with the slaves. The company is the only fishing operation on Benjina officially registered in Indonesia, and is listed as the owner of more than 90 trawlers. However, the captains are Thai, and the Indonesian government is reviewing to see if the boats are really Thai-owned. Pusaka Benjina did not respond to phone calls and a letter, and did not speak to a reporter who waited for two hours in the company's Jakarta office.

On the dock in Benjina, former slaves unload boats for food and pocket money. Many are men who were abandoned by their captains — sometimes five, 10 or even 20 years ago — and remain stranded.

In the deeply forested island interiors, new runaways forage for food and collect rainwater, living in constant fear of being found by hired slave catchers.

And just off a beach covered in sharp coral, a graveyard swallowed by the jungle entombs dozens of fishermen. They are buried under fake Thai names given to them when they were tricked or sold onto their ships, forever covering up evidence of their captors' abuse, their friends say.

"I always thought if there was an entrance there had to be an exit," said Tun Lin Maung, a slave abandoned on Benjina, as other men nodded or looked at the ground. "Now I know that's not true."

The Arafura Sea provides some of the world's richest and most diverse fishing grounds, teeming with mackerel, tuna, squid and many other species.

Although it is Indonesian territory, it draws many illegal fishing fleets, including from Thailand. The trade that results affects the United States and other countries.

The U.S. counts Thailand as one of its top seafood suppliers, and buys about 20 percent of the country's $7 billion annual exports in the industry. Last year, the State Department blacklisted Thailand for failing to meet minimum standards in fighting human trafficking, placing the country in the ranks of North Korea, Syria and Iran. However, there were no additional sanctions.

Thailand's seafood industry is largely run off the backs of migrant laborers, said Kendra Krieder, a State Department analyst who focuses on supply chains. The treatment of some of these workers falls under the U.S. government's definition of slavery, which includes forcing people to keep working even if they once signed up for the jobs, or trafficking them into situations where they are exploited.

"In the most extreme cases, you're talking about someone kidnapped or tricked into working on a boat, physically beaten, chained," said Krieder. "These situations would be called modern slavery by any measure."

The Thai government says it is cleaning up the problem. On the bustling floor of North America's largest seafood show in Boston earlier this month, an official for the Department of Fisheries laid out a plan to address labor abuse, including new laws that mandate wages, sick leave and shifts of no more than 14 hours. However, Kamonpan Awaiwanont stopped short when presented details about the men in Benjina.

"This is still happening now?" he asked. He paused. "We are trying to solve it. This is ongoing."

The Thai government also promises a new national registry of illegal migrant workers, including more than 100,000 flooding the seafood industry. However, policing has now become even harder because decades of illegal fishing have depleted stocks close to home, pushing the boats farther and deeper into foreign waters.

The Indonesian government has called a temporary ban on most fishing, aiming to clear out foreign poachers who take billions of dollars of seafood from the country's waters. As a result, more than 50 boats are now docked in Benjina, leaving up to 1,000 more slaves stranded onshore and waiting to see what will happen next.

Indonesian officials are trying to enforce laws that ban cargo ships from picking up fish from boats at sea. This practice forces men to stay on the water for months or sometimes years at a time, essentially creating floating prisons.

Susi Pudjiastuti, the new Fisheries Minister, said she has heard of different fishing companies putting men in cells. She added that she believes the trawlers on Benjina may really have Thai owners, despite the Indonesian paperwork, reflecting a common practice of faking or duplicating licenses.

After the AP released its report Wednesday, she tweeted it and distributed copies of it in a meeting to a wide range of high-ranking government officials, including police, a high court judge, a prosecutor, the Navy and customs.

"I'm not going to tolerate such a thing to continue happening in our waters," she said in an interview. She added that campaigns to save wildlife get far more attention than abuse involving humans at sea.

Illegal fishing is "killing people and nobody knows or cares about this for so long," she said.

_________

The story of slavery in the Thai seafood industry started decades ago with the same push-and-pull that shapes economic immigration worldwide — the hope of escaping grinding poverty to find a better life somewhere else.

In recent years, as the export business has expanded, it has become more difficult to convince young Burmese or Cambodian migrants and impoverished Thais — all of whom were found on Benjina — to accept the dangerous jobs. Agents have become more desperate and ruthless, recruiting children and the disabled, lying about wages and even drugging and kidnapping migrants, according to a former broker who spoke on condition of anonymity to avoid retribution.

The broker said agents then sell the slaves, usually to Thai captains of fishing boats or the companies that own them. Each slave typically costs around $1,000, according to Patima Tungpuchayakul, manager of the Thai-based nonprofit Labor Rights Promotion Network Foundation. The men are later told they have to work off the "debt" with wages that don't come for months or years, or at all.

"The employers are probably more worried about the fish than the workers' lives," she said. "They get a lot of money from this type of business."

Illegal Thai boats are falsely registered to fish in Indonesia through graft, sometimes with the help of government authorities. Praporn Ekouru, a Thai former member of Parliament, admitted to the AP that he had bribed Indonesian officials to go into their waters, and complained that the Indonesian government's crackdown is hurting business.

"In the past, we sent Thai boats to fish in Indonesian waters by changing their flags," said Praporn, who is also chairman of the Songkhla Fisheries Association in southern Thailand. "We had to pay bribes of millions of baht per year, or about 200,000 baht ($6,100) per month. ... The officials are not receiving money anymore because this order came from the government."

Illegal workers are given false documents, because Thai boats cannot hire undocumented crew. One of the slaves in Benjina, Maung Soe, said he was given a fake seafarer book belonging to a Thai national, accepted in Indonesia as an informal travel permit. He rushed back to his boat to dig up a crinkled copy.

"That's not my name, not my signature," he said angrily, pointing at the worn piece of paper. "The only thing on here that is real is my photograph."

Soe said he had agreed to work on a fishing boat only if it stayed in Thai waters, because he had heard Indonesia was a place from which workers never came back.

"They tricked me," he said. "They lied to me. ... They created fake papers and put me on the boat, and now here I am in Indonesia."

The slaves said the level of abuse on the fishing boats depends on individual captains and assistants. Aung Naing Win, who left a wife and two children behind in Myanmar two years ago, said some fishermen were so depressed that they simply threw themselves into the water. Win, 40, said his most painful task was working without proper clothing in the ship's giant freezer, where temperatures drop to 39 degrees below zero.

"It was so cold, our hands were burning," he said. "No one really cared if anyone died."

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The shipment the AP tracked from the port of Benjina carried fish from smaller trawlers; AP journalists talked to slaves on more than a dozen of them.

A crane hoisted the seafood onto a refrigerated cargo ship called the Silver Sea Line, with an immense hold as big as 50 semi-trucks. At this point, by United Nations and U.S. standards, every fish in that hold is considered associated with slavery.

The ship belongs to the Silver Sea Reefer Co., which is registered in Thailand and has at least nine refrigerated cargo boats. The company said it is not involved with the fishermen.

"We only carry the shipment and we are hired in general by clients," said owner Panya Luangsomboon. "We're separated from the fishing boats."

The AP followed the Silver Sea Line by satellite over 15 days to Samut Sakhon. When it arrived, workers on the dock packed the seafood over four nights onto more than 150 trucks, which then delivered their loads around the city.

One truck bore the name and bird logo of Kingfisher Holdings Ltd., which supplies frozen and canned seafood around the world. Another truck went to Mahachai Marine Foods Co., a cold storage business that also supplies to Kingfisher and other exporters, according to Kawin Ngernanek, whose family runs it.

"Yes, yes, yes, yes," said Kawin, who also serves as spokesman for the Thai Overseas Fisheries Association. "Kingfisher buys several types of products."

When asked about abusive labor practices, Kingfisher did not answer repeated requests for comment. Mahachai manager Narongdet Prasertsri responded, "I have no idea about it at all."

Every month, Kingfisher and its subsidiary KF Foods Ltd. sends about 100 metric tons of seafood from Thailand to America, according to U.S. Customs Bills of Lading. These shipments have gone to Santa Monica Seafood, Stavis Seafoods — located on Boston's historic Fish Pier — and other distributors.

Richard Stavis, whose grandfather started the dealership in 1929, shook his head when told about the slaves whose catch may end up at businesses he buys from. He said his company visits processors and fisheries, requires notarized certification of legal practices and uses third-party audits.

"The truth is, these are the kind of things that keep you up at night," he said. "That's the sort of thing I want to stop. ... There are companies like ours that care and are working as hard as they can."

Wholesalers like Stavis sell packages of fish, branded and unbranded, that can end up on supermarket shelves with a private label or house brand. Stavis' customers also include Sysco, the largest food distributor in the U.S.; there is no clear way to know which particular fish was sold to them.

Sysco declined an interview, but the company's code of conduct says it "will not knowingly work with any supplier that uses forced, bonded, indentured or slave labor."

Gavin Gibbons, a spokesman for National Fisheries Institute, which represents about 75 percent of the U.S. seafood industry, said the reports of abuse were "disturbing" and "disheartening." ''But these type of things flourish in the shadows," he said.

A similar pattern repeats itself with other shipments and other companies, as the supply chain splinters off in many directions in Samut Sakhon. It is in this Thai port that slave-caught seafood starts to lose its history.

The AP followed another truck to Niwat Co., which sells to Thai Union Manufacturing Co., according to part owner Prasert Luangsomboon. Weeks later, when confronted about forced labor in their supply chain, Niwat referred several requests for comment to Luangsomboon, who could not be reached for further comment.

Thai Union Manufacturing is a subsidiary of Thai Union Frozen Products PCL., the country's largest seafood corporation, with $3.5 billion in annual sales. This parent company, known simply as Thai Union, owns Chicken of the Sea and is buying Bumble Bee, although the AP did not observe any tuna fisheries. In September, it became the country's first business to be certified by Dow Jones for sustainable practices, after meeting environmental and social reviews.

Thai Union said it condemns human rights violations, but multiple stakeholders must be part of the solution. "We all have to admit that it is difficult to ensure the Thai seafood industry's supply chain is 100 percent clean," CEO Thiraphong Chansiri said in an emailed statement.

Thai Union ships thousands of cans of cat food to the U.S., including household brands like Fancy Feast, Meow Mix and Iams. These end up on shelves of major grocery chains, such as Kroger, Safeway and Albertsons, as well as pet stores; again, however, it's impossible to tell if a particular can of cat food might have slave-caught fish.

After the AP's story was released Wednesday, the company issued an additional statement saying it had immediately terminated business ties with a supplier after determining it might be involved with forced labor and other abuses. It did not say which supplier.

"Thai Union embraces AP's finding. It is utterly unacceptable," it said. "This is to prove that Thai Union takes the issue of human rights violation extremely seriously."

Wal-Mart described its work with several non-profits to end forced labor in Thailand, including Project Issara, and referred the AP to Lisa Rende Taylor, its director. She noted that slave-caught seafood can slip into supply chains undetected at several points, such as when it is traded between boats or mingles with clean fish at processing plants. She also confirmed that seafood sold at the Talay Thai market — to where the AP followed several trucks — can enter international supply chains.

"Transactions throughout Thai seafood supply chains are often not well-documented, making it difficult to estimate exactly how much seafood available on supermarket shelves around the world is tainted by human trafficking and forced labor," she said.

Poj Aramwattananont, president of an industry group that represents Thai Union, Kingfisher and others, said Thais are not "jungle people" and know that human trafficking is wrong. However, he acknowledged that Thai companies cannot always track down the origins of their fish.

"We don't know where the fish come from when we buy from Indonesia," said Poj of the Thai Frozen Foods Association. "We have no record. We don't know if that fish is good or bad."

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The seafood the slaves on Benjina catch may travel around the world, but their own lives often end right here, in this island village.

A crude cemetery holds more than 60 graves strangled by tall grasses and jungle vines, where small wooden markers are neatly labelled, some with the falsified names of slaves and boats. Only their friends remember where they were laid to rest.

In the past, former slave Hla Phyo said, supervisors on ships simply tossed bodies into the sea to be devoured by sharks. But after authorities and companies started demanding that every man be accounted for on the roster upon return, captains began stowing corpses alongside the fish in ship freezers until they arrived back in Benjina, the slaves said.

Lifting his knees as he stepped over the thick brush, Phyo searched for two grave markers overrun by weeds — friends he helped bury.

It's been five years since he himself escaped the sea and struggled to survive on the island. Every night, his mind drifts back to his mother in Myanmar. He knows she must be getting old now, and he desperately wants to return to her. Standing among so many anonymous tombs stacked on top of each other, hopelessness overwhelms him.

"I'm starting to feel like I will be in Indonesia forever," he said, wiping a tear away. "I remember thinking when I was digging, the only thing that awaits us here is death."

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Esther Htusan contributed to this report from Benjina, Indonesia. Mason reported from Samut Sakhon, Thailand; Mendoza reported from Boston, Massachusetts.

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Online:

AP Video: https://www.youtube.com/watch?v=vgYgAVQG5lk

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Follow Margie Mason and Martha Mendoza on Twitter: https://twitter.com/MargieMasonAP , https://twitter.com/mendozamartha


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HJ Heinz buying Kraft and building a $28 billion food giant

NEW YORK — H.J. Heinz Co. is buying Kraft Foods, creating one of the largest food and beverage companies in the world with annual revenue of about $28 billion.

The Kraft Heinz Co. will own Kraft, Heinz, Oscar Mayer, Ore-Ida and large stable of other brands. Eight of those brands have annual sales of $1 billion or more and five others log sales between $500 million and $1 billon every year.

The deal to bring together the two companies, each more than a century old, was engineered by Warren Buffett's Berkshire Hathaway and Brazilian investment firm 3G Capital. The two will invest another $10 billion in the new company.

The merger comes as well-established food producers struggle to keep up with shifting appetites. Consumers are seeking more unprocessed foods, and have migrated away from one-time staples of the American diet.

Buffett, however, said both companies have a strong base. He has been investing steadily on both of them for quite a while.

"I think the tastes Kraft and Heinz appeal to are pretty enduring," Buffett said in a telephone call to the business news channel CNBC.

The massive deal materialized rapidly, Buffett said, having been in the works for only about four weeks or so.

There are plans for at least four new products this year, Buffett said, and that there is a lot of freedom to sell the company's products outside of the U.S. and Canada.

Since splitting from Mondelez International Inc. in 2012, Kraft's business has been primarily concentrated in the U.S. and Canada. All of its manufacturing capacity is in those two countries, according to the company's annual report.

Kraft Heinz will maintain headquarters in Pittsburgh, where Heinz is based, and also in the Chicago area, where Kraft resides.

Shares of Kraft jumped nearly 34 percent Wednesday before the opening bell.

Kraft shareholders will receive stock in the combined company and a special cash dividend of approximately $10 billion, or $16.50 per share. Each share of Kraft will be converted into one share of Kraft Heinz.

Current Heinz shareholders will own 51 percent of the combined company, with Kraft shareholders owning a 49 percent stake.

Annual cost savings estimated to be $1.5 billion are expected to be booked by the end of 2017.

Buffett and 3G Capital snapped up Heinz in a deal valued at $23.3 billion two years ago.

Heinz CEO Bernardo Hees will become CEO, Alex Behring, Heinz chairman and managing partner at 3G Capital, will be chairman. Kraft CEO and Chairman John Cahill will become vice chairman.

The Kraft Heinz board will include six directors from the current Heinz board. Those six directors will include three members from Berkshire Hathaway and three members from 3G Capital. The current Kraft board will appoint five directors to the combined company's board.

The deal still needs a nod from federal regulators as well as shareholders of Kraft Foods Group Inc., but the boards of both companies unanimously approved it. The planned closing is set for the second half of the year.

Kraft Heinz plans to keep Kraft's current dividend per share once the transaction closes. Kraft has no plans to change its dividend before the deal is complete.


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US durable goods orders fell 1.4 percent in February

WASHINGTON — Orders to U.S. factories for long-lasting manufactured goods fell in February for the third time in the past four months, while a key investment category fell for a sixth month.

Orders for durable goods dropped 1.4 percent in February following a 2 percent increase in January and declines of 3.7 percent in December and 2.2 percent in November, the Commerce Department reported Wednesday. A key category that serves as a proxy for business investment spending retreated 1.4 percent in February, the sixth consecutive monthly decline.

The weakness in February was widespread, with weaker demand for commercial aircraft, autos and machinery. The result adds to a slew of disappointing data from recent economic indicators. Economists, however, expect domestic demand to strengthen in the months ahead and hope that will be enough to offset weakness caused by a stronger dollar, which dampens export sales of U.S. companies.

Transportation orders were down 3.5 percent. Excluding transportation, durable goods orders dropped 0.4 percent. Demand for machinery and computers fell, while orders for communications equipment and appliances rose.

Paul Ashworth, chief U.S. economist at Capital Economics, blamed some of the weakness to the big plunge in energy prices, which has led to cutbacks in drilling plans by oil and gas companies. But he noted one sign of encouragement — business surveys of investment spending plans have improved significantly in recent months.

"We would expect to see a rebound in equipment investment in the second quarter," Ashworth said.

Many economists are looking for manufacturing orders to start strengthening following a stretch of weakness in the second half of last year. They believe the end of harsh winter weather and the resolution of a labor dispute at West Coast ports, which caused supply disruptions, should help.

They expect strong consumer spending, powered by a year of healthy job gains, will boost domestic demand and help to offset global weakness and the strong dollar.

Growth in the overall economy slowed significantly in the October-December quarter, with a widening trade deficit trimming growth by more than a percentage point.

The government will release its third and final estimate of economic growth in the fourth quarter on Friday. Analysts expect growth will be revised slightly to a rate of 2.4 percent, up from the previous estimate of 2.2 percent. But that would still leave the economy expanding far below the 5 percent rate in the third quarter. And economists believe growth has remained sluggish in the current January-March period at around 2 percent.


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Bill would create organic-type labels for nonmodified foods

WASHINGTON — Inspired by the popular "USDA organic" label, House Republicans are proposing a new government certification for foods free of genetically modified ingredients.

The idea is part of an attempt to block mandatory labeling of foods that include genetically modified organisms, or GMOs. The certification would be voluntary, says Rep. Mike Pompeo, R-Kan., who is including the idea in legislation he is introducing Wednesday.

Pompeo says a government-certified label would allow companies that want to advertise their foods as GMO-free to do so, but it would not be mandatory for others. The food industry, which backs Pompeo's bill, has strongly opposed individual state efforts to require labeling, saying labels would be misleading because GMOs are safe. The bill would also override any state laws that require the labeling.

Under the legislation, the Agriculture Department would oversee the certification, as it does with organics. But while organic foods must be USDA-certified to carry any organic label on a package, the department's non-GMO certification would not be required for every food that bills itself as free of genetically modified ingredients. The idea is that foods the department certifies as free of GMOs would have a special government label that companies could use to market their foods. User fees would pay for the program.

The bill also steps up FDA review of genetically modified foods. Currently, food companies must comply with FDA guidance if they want to claim that foods are free of engineered ingredients.

Pompeo says inconsistent state laws would be confusing and costly for consumers and for companies. Vermont became the first state to require the labeling in 2014, and that law will go into effect next year if it survives a legal challenge from the food industry.

"We're perfectly happy to have folks to understand if there's GMOs or not in their food," Pompeo said in an interview with The Associated Press. "It is simply not the case that you can have affordable food that is safe and 1,000 different rules."

He said he is working with his party's leadership and also the Senate to try to pass the bill this year. Pompeo introduced a similar bill last year that did not include the Agriculture Department certification.

Genetically modified seeds are engineered in laboratories to have certain traits, like resistance to herbicides. The majority of the country's corn and soybean crop is now genetically modified, with much of that going to animal feed. They are also made into popular processed food ingredients like high-fructose corn syrup and soybean oil.

The FDA says GMOs on the market now are safe, but consumer advocates pushing for the labeling say shoppers have a right to know what is in their food, arguing that not enough is known about the effects of the technology. They have supported several state efforts to require labeling, with the eventual goal of having a federal standard.

Those groups quickly criticized Pompeo's approach.

"This is a faulty and disingenuous attempt to assuage consumer concern without actually giving the people the information they want and deserve," said Andrew Kimbrell of the advocacy group Center for Food Safety. "The most effective way to provide consumers with the full universe of information about their food is through mandatory labeling, nothing less."

Scott Faber, head of the national Just Label It campaign, described the bill as a last-ditch effort by the food industry as state legislatures are considering bills around the country that would require the labeling.

According to a December Associated Press-GfK poll, two-thirds of Americans favor mandatory labeling of genetically modified foods.

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Follow Mary Clare Jalonick on Twitter: http://twitter.com/mcjalonick


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Auto workers president rejects lower-tier of wages

DETROIT — The leader of the United Auto Workers union has rejected a third tier of lower wages for members who make auto parts.

Speaking Wednesday at the union's national bargaining convention in Detroit, President Dennis Williams said the UAW already has too many tiers of lower wages.

Williams was responding to reports that General Motors Co. and Ford Motor Co. may propose a third tier of pay. He already is under pressure from union members to end a second tier of wages that's about half the $28 per hour made by longtime workers.

He told delegates that he heard people talking about the third tier, which would pay less than the $15.28 starting wage for second-tier workers, on their way in to the convention center Wednesday morning.

"I'm thinking they got too many damn tiers now," said Williams, who received a standing ovation.

Actually, a third tier of wages already is in place at several General Motors factories in the Detroit area for a small number of workers who build battery packs and place parts in the right sequence to be assembled on cars. Without the lower tier, the work may have gone to Mexico or another country with lower labor costs.

Williams told members about bridging the gap in wages, an apparent reference to the first and second tiers. But he also said they're competing in a global economy.

Many at the convention spoke in favor of pay raises for veteran workers. Longtime UAW workers have not had an hourly pay raise since 2007, although they have received hefty annual profit sharing checks. But there's no guarantee of getting checks every year.

Williams didn't address pay raises in his speech, but has said in the past that there are ways to give raises and keep the companies competitive.

In his speech, he said workers shared in getting the auto companies through bad times and "we must equally share in the good times."

Contract talks with between Fiat Chrysler, GM, Ford and the UAW start this summer. The union represents about 137,000 workers at the three companies. The current contract expires in September.

The convention, which takes place every four years, sets the agenda for the union's bargaining efforts with the auto companies and other industries.

This year's talks are the first to come after the auto industry fully recovered from the Great Recession, and could be contentious as the union seeks a slice of the industry's billions of dollars in profits. Auto sales are expected to hit nearly 17 million in the U.S. this year, close to historic highs. They fell as low as 10.4 million in 2009.

Auto companies, mindful of the recession, are reluctant to increase U.S. labor costs and once again be at a cost disadvantage to foreign companies. They actually want to reduce labor expenses, contending that their costs already have grown above competitors.

An analysis done by the Center for Automotive Research, a think tank based in Ann Arbor, Michigan, shows that to be true, at least for General Motors and Ford.

GM's total hourly labor costs, including wages and benefits, total $58 per hour, followed closely by Ford at $57. Both are more than $8 above Honda and Toyota, whose costs are below $50 per hour, the analysis found. Chrysler, with costs totaling $48 per hour, is below Honda and equal to Toyota, but higher than Nissan, Hyundai, BMW and Volkswagen, according to the analysis.

Mercedes-Benz had the highest labor costs in the U.S. at $65 per hour, while Volkswagen was the lowest at $38.


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Obama says he's ready to sign Medicare doctor payment fix

WASHINGTON — President Barack Obama said Wednesday that he's ready to sign good bipartisan legislation to fix Medicare's doctor payment problem, without endorsing any specific legislation.

Without a fix, doctors face a 21 percent cut in Medicare fees, the consequence of a 1990s budget law that Congress has repeatedly waived.

The House is expected to vote Thursday on a bill with rare support from both top leaders in the House that would permanently fix the problem. Obama backed the idea of a fix at a White House event marking this week's five-year anniversary of his signing the Affordable Care Act, while stopping short of backing the House compromise.

"As we speak, Congress is working to fix the Medicare physician payment system. I have my pen ready to sign a good bipartisan bill," he said.

The House bills calls for a period of basically stable reimbursements, followed by gradually shifting a larger share of doctors' pay so that it's keyed to quality, rather than quantity, of service. The Medicare fix is packaged with an extension of children's health insurance, funding for community health centers and dozens of other provisions. The outlook in the Senate is unclear.

Drafted with the unusual support of both top leaders in the House — Speaker John Boehner for the GOP and Democratic leader Nancy Pelosi — the bill is aiming for the political center. That seemed to have collapsed on health care in the battles over President Barack Obama's overhaul.

The legislation is being criticized from the political right and the left. Conservatives don't like that most of the cost will be added to the federal deficit. Liberals object to higher premiums for upper-income beneficiaries, when drug companies are not being asked to share the burden through Medicare rebates.

Obama also announced a cost-cutting effort that the White House calls a Health Care Payment Learning and Action Network. The White House says more than 2,800 health care providers, patients and consumer groups have agreed to take part.

The goal is to tie more payments for health care services to the quality — not quantity — of services rendered. Earlier this year the administration set a goal to tie 30 percent of Medicare payments to quality and value, but Obama wants to go further.

"A central notion in the Affordable Care Act was we had an inefficient system with a lot of waste that didn't also deliver the kind of quality that was needed that often put health care providers in a box where they wanted to do better for their patients, but financial incentives were skewed the other way," Obama said.

"We don't need to reinvent the wheel — you're already figuring out what works to reduce infections in hospitals or help patients with complicated needs," Obama told health care providers gathered in the Eisenhower Executive Office Building next to the West Wing. "What we have to do is to share these best practices, these good ideas, including new ways to pay for care so that we're rewarding quality."

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Follow Nedra Pickler on Twitter: http://www.twitter.com/nedrapickler


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