The Justice Department says United Parcel Service Inc. must pay $8.4 million to settle allegations that the company was overcharging the federal government for package deliveries.
The Justice Department alleges UPS failed to abide by terms of its contract with the General Services Administration and overcharged the government for services from 2007 until 2014. The government says its contract required UPS to provide the same lower prices offered to other customers.
Assistant Attorney General Jody Hunt said the settlement shows the government “will hold accountable” contractors who try to overcharge the federal government.
The settlement announced Friday resolves the allegations, but there was no determination of liability.
UPS said the allegations stemmed from “good faith differences regarding contract interpretation” and it was pleased the matter was resolved.
Workwear maker expands in Tennessee
VF Corp., plans to expand its current Workwear operations in Henning, Tennessee, and locate a new distribution facility in Covington, Tennessee.
The apparel company announced Friday in will invest nearly $7.5 million and create over 220 new jobs in West Tennessee.
VF plans to add 162 more jobs in Henning and will locate a new 66-job distribution center in Covington.
“Our Workwear division is a growing part of our global VF business, and these facilities will provide us with the added capability and resources to deliver high-quality work apparel and footwear to our consumers and customers,” said Chris Holcombe, president of VF Workwear.
Founded in 1899, VF Corporation is one of the world’s largest apparel, footwear and accessories companies wit an iconic outdoor, active and workwear brands including Vans, The North Face, Timberland and Dickies. VF’s Workwear division has a major presence in Nashville, and employs more than 6,600 people worldwide.
Whole Foods cuts part-time benefits
Whole Foods, the grocery chain owned by Amazon which operates a store in North Chattanooga, is cutting health care benefits for its part-time workers, a move that could leave about 1,900 of its employees without medical coverage.
Starting next year, Whole Foods employees have to work at least 30 hours a week to qualify for its health care benefits, up from the 20 hours a week it currently requires.
The grocer, which has about 95,000 workers, said it is making the change “to better meet the needs of” its business. Whole Foods said it is helping worker explore full-time jobs at its stores or find other ways to get health care coverage.
Online shopping giant Amazon.com Inc. bought Whole Foods two years ago for nearly $14 billion, cutting prices on some items and adding its smile logo in its aisles.
Retail sales rise 0.4% in August
U.S. retail sales rose moderately in August, driven higher by a jump in auto buying and healthy online sales, evidence that consumers are still spending enough to support growth.
The Commerce Department said Friday that retail sales increased 0.4% last month, down from a strong 0.8% in July.
There were also signs that consumers have become more cautious. Excluding autos, sales were unchanged for the first time since February.
The data follows signs that consumer confidence, while still strong, has slipped a bit as the U.S.-China trade war has intensified. U.S. businesses have cut back on their investment and expansion plans amid the trade war’s uncertainty and exports have declined. That has left consumers as a key source of growth.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that consumer spending will likely be healthy through the July-September quarter, but then weaken in the final three months of the year.
“For now, the consumer looks strong, but the outlook is deteriorating as confidence falters in the face of the tariffs and, over the next few months, slowing job gains,” Shepherdson said.
London Exchange rejects Hong Kong takeover bid
The London Stock Exchange on Friday rejected an unsolicited takeover bid from its Hong Kong counterpart, citing “fundamental concerns” about the offer.
The London Stock Exchange Group said strategic and regulatory problems were among the reasons it turned down the unexpected proposal by Hong Kong Exchanges and Clearing Ltd., which would have created a $70 billion company.
One potential roadblock was concern in Britain about the possibility of the Chinese government influencing one of the symbols of global capitalism. At least half of Hong Kong Exchanges’ board and the chairman are nominated by the city’s government, whose leader is ultimately appointed by China’s communist rulers.
The cash-and-shares offer would have valued the London Stock Exchange Group at 29.6 billion pounds ($36.9 billion). It was conditional on the group scrapping a plan to buy financial data provider Refinitiv for $27 billion.
“Given the fundamental flaws in your proposal, we see no merit in further engagement,” Chairman Don Robert said in a letter to Hong Kong Exchanges CEO Charles Li and Chairwoman Laura Cha.
WeWork cuts CEO share in company
WeWork’s parent company announced major changes in its corporate governance practices Friday as it revealed plans to list shares on the Nasdaq.
The We Company is pressing on with its highly anticipated stock market debut – expected later this month – despite concerns over its ability to make money and the messy decisions of co-founder and CEO Adam Neumann.
WeWork said it was cutting by half – to 10 per share from 20 – the voting power of highest-class shares that Neumann and others would have after the IPO. Neumann would still control a majority of its outstanding voting power, giving him the ability to dictate the outcome of major decisions.
The company also said it will have the power to remove the Neumann as CEO and will act as a group to appoint a successor, instead of relying on a board committee.
The office-sharing company’s parent firm, The We Company, announced the changes in response to market feedback in a regulatory filing Friday.
Investors have shown lukewarm interest since WeWork outlined its IPO plans last month, painting a picture of breakneck expansion on the back of massive losses, with no clear path to profitability. The New York-based company is considering a valuation of less than half of the estimated $47 billion that private investors have assigned to it, according to news reports and a source familiar with the discussions.