Left at a Loss on Labor Day
We
just celebrated Labor Day, which means you’ve gotten a dose of boring
"state of the labor market" articles and opinions. Alas, this is
another one.
The
situation on the job front is not good. You probably know that unemployment
nationwide was 9.6 percent in August. It was much worse in California
at 12.3 percent and in Los
Angeles County
at 12.4 percent in July. A year earlier, L.A.’s
unemployment was 11.9 percent. In other words, it was bad last year and worse
this year.
But
you may not know that the unemployment rate only tells some of the story.
Another part is how many jobs are being created. Or lost.
Impact of Oil Tax Doesn’t Sink In
Little
moments can say a lot.
I
experienced one such little moment a few weeks ago when John Perez, the speaker
of the California Assembly, stopped by the Business Journal to talk about the
state budget. He explained that one of the Democrats’ big proposals is to
impose a new tax on oil pumped out of the ground in California. He said it figures to be roughly
9.9 percent.
"Nine-point-nine
percent of what?" I asked.
American Apparel CEO a Good Fit
The
calls intensified last week for Dov Charney to step aside as chief executive of
American Apparel.
That’s
nothing new. Even I opined in late 2008 that Charney should become chief
creative officer or some such, and turn over the CEO duties to an experienced
hand. What’s new is that virtually every analyst and stockholder now is
screaming it.
On
the face of it, such calls make sense. Charney’s stewardship of the
clothing company in recent years could be characterized as dismal. American
Apparel has been criticized for its provocative ads and Charney is forever
branded as a one-man generator of sexual harassment lawsuits. The
company’s financials have long been shaky.
Beverly Hills’ Bad Medicine
The Beverly Hills City Council apparently doesn’t realize what it’s got.
It’s
got a city with a reputation. A huge reputation. A worldwide
reputation. The kind of reputation that other towns lust for but can
only dream of.
Beverly Hills is known as the place to get cosmetic surgery.
Does Oxy Chief Measure Up?
Ray Irani
gets too much money, according to the California State Teachers’
Retirement System and an activist investor group. Last week the two
said they’d fight to get their own slate of directors on the board of
Irani’s employer, Occidental Petroleum Corp. of Westwood.
Irani certainly hauls a bundle.
Last year, he made off with $31.4 million in salary, bonuses and stock
awards. If you throw in the value of past options he exercised during
the year and stock grants that vested, he got close to $128 million.
But is that too much? Let’s compare:
L.A. to Eli Broad: ‘Stick ’em Up’
It’s sickening to see the way Eli Broad is being mugged by Los Angeles.
Here’s a statesman who’s trying to make a gift to the city, and one
that’s exceedingly generous. So you’d think the so-called leaders of
Los Angeles County and the city would have the decency to say thank you.
Instead, they’re leveling the blued-steel barrel of government power at him and saying, "Stick ’em up."
Trading in Positive Signs
If
you’re a business person in Los Angeles, you’ve got plenty to worry
about. Your sales may be poky, your taxes may go up, and in just a few
short weeks, Lindsay Lohan will be released from jail and driving on
our streets again.
But here’s something you don’t have to worry about: the international trade deficit.
In fact, I’ll go further: You might even take some comfort in our deepening trade deficit.
A Lesson for School Board
The
graduation rate for students in the Los Angeles Unified School District
is down to less than 41 percent, it was reported recently. That’s the
second worst in the country.
Now if you were on the LAUSD board,
you’d probably figure there was hard work to do. You might even be
humbled by a number like that.
Silly you.
Giving L.A. Businesses a Break
I’ve
criticized the city of Los Angeles for the way it treats businesses. It
says it wants companies to call the city home, then it all but cudgels,
kicks and chases businesses out of town.
But I must admit that I’m pleased
to see a proposal from Councilmen Richard Alarcon and Greig Smith that,
if passed, may be a modest help to lure businesses to the city or allow
them to get started.
The proposal would temporarily
expand the waiver on the gross receipts tax on businesses. Basically,
new businesses or ones that relocated to Los Angeles would not have to
pay the tax for three years.
Three Faces of Los Angeles
If you’re a
business person who has to deal with the city of Los Angeles, you may
get the feeling you’re watching that old movie, "Three Faces of Eve."
I mean, Los Angeles must have a multiple personality disorder. How else can you explain this:
On Tuesday, Councilman Tom LaBonge
stood up at an event in which the governor and the mayor, among others,
congratulated themselves for helping a bioscience business stay in Los
Angeles. He implied that he was all in favor of helping businesses.
LaBonge told the crowd that when he first met Austin Beutner, L.A.’s
so-called jobs czar, a few months back, he instructed Beutner to "do
what we can" to help businesses.