Legislative, Regulatory & Legal

The retail industry has temporarily avoided a shut down of 14 ports along the East and Gulf coasts following a 30 day extension of contract negotiations with organized labor.

The extension solves nothing, but it does give port operators and representatives of the U.S. Maritime Alliance and International Longshoremen’s Association time to iron out a new collective bargaining agreement that was set to expire on December 29. Retail industry trade groups welcomed news of the extension, while pushing for a longer term solution.

New York City -- A federal mediator announced Friday that the union for longshoremen along the East Coast and Gulf of Mexico has agreed to extend its contract for 30 days.

The extension averts a potential strike that could have crippled operations at ports that handle about 40% of all U.S. container cargo, and it comes after the union and an alliance of port operators and shipping lines resolved a royalty payment issue that had held up contract resolution. Exact terms have not been made public.

Minneapolis -- Supervalu last week settled its suit enforcing a non-compete clause against former president Leon Bergmann, the Minneapolis/St. Paul Business Journal reported.

According to the report, Bergmann had resigned as president of Supervalu's independent business organization in favor of a position with Unified Grocers. Supervalu sued to enforce its confidentiality agreements.

Details of the settlement were not disclosed.

Woodcliff Lake, N.J. -- Seventy-four percent of workers report they are concerned that the U.S. fiscal cliff will lead to layoffs, according to a survey released Thursday by career transition and talent development consulting firm Lee Hecht Harrison.

In December, the firm surveyed more than 200 workers throughout the U.S. via an online poll asking, “Are you concerned that the U.S. fiscal cliff will lead to layoffs in your organization?” The results were as follows:
Very much 40%; Moderately 22%; 
Slightly 12%; Not at all 26%.

New York City -- A Wednesday report by MarketWatch said that a potential strike by nearly 15,000 dock workers at 14 ports from Boston to Houston beginning on Sunday may derail retailers’ spring selling as well.

Washington, D.C. -- A report issued Thursday by the Conference Board said that its consumer confidence index fell sharply in December to 65.1 from 75.1 in November, impacted by fears of tax increases and impending government spending cuts.

The fall in confidence is the second straight decline and the lowest level since August.

The survey showed that consumers are slightly more optimistic about current business conditions and hiring. But their outlook for the next six months deteriorated to its lowest level since 2011.

Wal-Mart Stores, Inc., president and CEO Mike Duke claims to love working for a company where success and size have resulted in high expectations, but that love affair may be ending in 2013.

Karen Roberts was named EVP and general counsel for Wal-Mart Stores, Inc. on Thursday amid the retailer’s ongoing investigation in possible violations of the U.S. Foreign Corrupt Practices Act.

Roberts, 42, is a 17 year Walmart veteran who most recently served as EVP and president of Walmart Realty for Walmart U.S.. However, prior to that, she held the position of SVP and chief compliance officer for Walmart U.S. where she oversaw the establishment of food and product safety programs and a recycling program.

Walmart’s ongoing investigation into bribery allegations was thrust into the spotlight again this week after the New York Times published results of its own investigation.

WASHINGTON — The National Retail Federation welcomed the House vote on legislation intended to avoid middle-class tax increases in the fiscal cliff, saying progress on the issue is critically important.