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US Workers: Most Productive

September 3rd, 2007

United Nations - US Workers Most ProductiveAccording to a United Nations Report, United States workers produce more per person in a year’s span of time than workers of any other country. On average, a US worker will produce $63,885 of wealth per year; with Ireland in second at $55,986, Luxembourg in third with $55,641, followed by Belgium at $55,235 and France at $54,609.

Generated from 2006 figures or most recent, this productivity indicator is calculated by dividing the country’s gross domestic product by the number of people employed.

The report goes on to say that the US worker put in an average of 1,804 hours in 2006, compared to 1and 1,564.4 for the French and ,407.1 hours for the Norwegian worker. The gap between the United States and other countries in the amount of wealth generated each year per worker can be somewhat explained by the longer hours Americans put in. It can also be explained by the “ICT (information and communication technologies) revolution, with the way the U.S. organizes companies, with the high level of competition in the country, with the extension of trade and investment abroad,” said Jose Manuel Salazar, the ILO’s head of employment.

The Key Indicators of the Labour Market (KILM) report is released every other year and details a set of 20 labor market indicators that cover various facets of decent work deficits around the world.

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Earthlink Restructuring and Cutbacks

August 29th, 2007

Earthlink Slashes JobsClosing offices in Orlando, Knoxville and Harrisburg, Earthlink - an internet service provider, said yesterday that it will be firing 900 employees. Part of a restructuring plan that has been in full swing since CEO Rolla Huff came to office in late June, the plan also includes a $200 million share buy-back program. Shares of Earthlink sored up as much 12% and continues to climb today. Restructuring costs are estimated $60 million to $70 million, with a projected annual savings of $25 million to $35 million.

In efforts to move away from creeping sales of its dial-up service, Earthlink has been investing into public wireless hotspots and reselling DSL subscriptions. However, Earthlink has cut its outlook, citing third quarter revenue $290 million to $300 million - a net loss of $33 million to $43 million.

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Gateway Acquisition says Acer

August 27th, 2007

GatewayForming the third-largest PC manufacturer, behind Hewlett-Packard and Dell, Acer has announced plans to acquire Gateway for $710 million. Chief critiques of foreign take-overs have signaled that Acer’s take-over will not encounter any political resistance.

A deal that includes $1.90 for each share of Gateway. Following the news release, shares of Gateway’s sored 60 cents for a close at $1.81. A price that does not even come close to its all time high of $84 a share.

It is still unclear if Acer will integrate Gateway into its current operation, or if Gateway will continue under its current brand. A deal that would increase the company’s economies-of-scale, a joint statement by Acer and Gateway said the deal would lead to lower component costs and a cost savings of more than $150 million.

This acquisition would improve Acer’s position within the United States, particularly in the lower-end of the market. Both Acer and Gateway specialize in value-based computer systems, relying heavily on Internet and resellers for sales growth.

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