UPMC Offering Buyouts To 3,500 Employees In Cost-Cutting Move

UPMC is offering buyouts to 3,500 of its older workers in a move to cut costs as the Pittsburgh hospital giant adjusts to slowing demand for hospital-based care.

The nonprofit organization said Tuesday that it was offering the voluntary severance to employees who are 60 or older and have at least 10 years of service. The offer, which was made to 5.6 percent of UPMC’s total workforce, includes medical and dental benefits, severance pay and a one-time cash payment of $15,000, UPMC said in a statement.

“This program both honors and respects long-term staff members who are ready to move to the next phase in life and, simultaneously, helps achieve cost-savings for UPMC by adjusting our workforce to meet the demands of the health care marketplace,” the statement said.

UPMC is the state’s largest private employer, with about 62,000 workers.

Read more: http://triblive.com/business/headlines/8442119-74/upmc-health-largest#ixzz3bM0tSWNm
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Alcoa May Close Or Sell Some Aluminum Plants To Cut Costs

Alcoa Inc. may close or sell 14 percent of its smelting capacity and 16 percent of its refining capacity in a move to lower costs in the face of falling aluminum prices and higher production in China.

New York-based Alcoa, which has significant operations in Pittsburgh, said it will review high-cost operations across its global system of aluminum production facilities over the next 12 months.

Read more: http://triblive.com/business/headlines/7914995-74/aluminum-capacity-percent#ixzz3TcpomCh1
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First-Class Stamps To Cost 49 Cents As Of January 26, 2014

USPS service delivery truck in a residential area of San Francisco, California (Photo credit: Wikipedia)

WASHINGTON — Mailing a letter is about to get a little more expensive.

Regulators on Tuesday approved a temporary price hike of 3 cents for a first-class stamp, bringing the charge to 49 cents a letter in an effort to help the Postal Service recover from severe mail decreases brought on by the 2008 economic downturn.

Many consumers won’t feel the price increase immediately. Forever stamps, good for first-class postage whatever the future rate, can be purchased at the lower price until the new rate is effective Jan. 26.

The higher rate will last no more than two years, allowing the Postal Service to recoup $2.8 billion in losses. By a 2-1 vote, the independent Postal Regulatory Commission rejected a request to make the price hike permanent, though inflation over the next 24 months may make it so.

Read more: http://www.pottsmerc.com/general-news/20131225/first-class-stamps-to-cost-49-cents-as-of-jan-26

Good-Bye Ruby Tuesday?

NEW YORK (TheStreet) – Casual-dining restaurant chain Ruby Tuesday issued a press release last week meant to show investors that the company is taking steps to turn itself around, but what it told me is that theroad to recovery may be a long one.

Coming on the heels of worse-than-expected results for its fiscal first quarter and then the sudden resignations of the company’s chairman and a key vice president, plus a downgrade of its debt by Moody’s deeper into junk territory, the press release gave more details about the cost-cutting initiatives Ruby Tuesday is undertaking in attempts to right its ship.

In its efforts to cut $6 million from its selling, general and administrative costs beginning in 2015, the company is reviewing its cost structure. The first move will be the elimination of 50 jobs at its Maryville, Tenn., restaurant support center. Next, the restaurant chain will hire a consulting firm to help it cut cost of goods sold and other restaurant operating costs.

Read more: http://business-news.thestreet.com/philly/story/good-bye-ruby-tuesday/12124084

Merck To Cut Costs By $2.5 Billion, Eliminating 8,500 Jobs

Location of Upper Gwynedd Township in Montgomery County (Photo credit: Wikipedia)

Merck & Co, taking a cue from other drugmakers that have slashed research spending to bolster earnings, on Tuesday said it plans to slash 8,500 jobs and cut annual operating costs by $2.5 billion by the end of 2015.

The job cuts announced Tuesday, representing more than 10 percent of the company’s global workforce of 81,000 employees, would be in addition to previously announced cuts of 7,500 positions.

Merck has 11,700 employees at seven sites in Pennsylvania, including those working in West Point and Upper Gwynedd in Montgomery County.  Spokeswoman Lainie Keller said the job cuts are companywide and could not say how many would affect the Pennsylvania sites.

By slimming down, Merck aims to narrow its focus to products with the best chance of winning regulatory approval and achieving substantial sales, while jettisoning research products with less likelihood of success.

Read more: http://www.mcall.com/news/breaking/mc-merck-cuts-jobs-20131001,0,511705.story#ixzz2gVN0aY3m
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Committee Considers Merger Between Exeter, Antietam

Map of Berks County, Pennsylvania, United States Public School Districts (Photo credit: Wikipedia)

Antietam and Exeter school district officials are trying to flesh out what a merger of the two districts could look like, and they’ve formed a new committee to discuss the possibilities.

Closing Antietam’s two elementary schools and forming a single high school for 10th- through 12th-graders were among the ideas the committee kicked around at its first meeting Monday at Antietam Middle-Senior High school.  The committee is made up of an administrator, board president and three additional board members from each district.

Committee member Beth Calabria, who serves on the Antietam School Board, said there needs to be some sort of time frame for coming up with a merger model.

A merger feasibility study by Civic Research Alliance, Mechanicsburg, Cumberland County, was released to the public in April and outlined four models for the districts’ futures.  The models were keeping things as they are, sharing programs and services, adopting a regional school model and a full merger.

Read more:  http://readingeagle.com/article.aspx?id=493336

Reading Area Mail Slowed By Post Office Moves

USPS service delivery truck in a residential area of San Francisco, California (Photo credit: Wikipedia)

Mail delivery has been slowed in the Reading area due to the recent termination of mail processing in the city, but a U.S. Postal Service spokesman said Wednesday that the delays should be temporary.

The mail that used to be processed at the Gus Yatron Postal Facility, 2100 N. 13th St., is now being handled in a Harrisburg facility.

The change was part of the Postal Service’s nationwide cost-cutting efforts, which include the closure of hundreds of mail processing sites.

The Postal Service no longer has the mail volume to justify keeping those facilities open, officials have said.

Read more:  http://readingeagle.com/article.aspx?id=485891

6-Figure Shortfall Stymies Exeter School Board

Map of Berks County, Pennsylvania, United States Public School Districts (Photo credit: Wikipedia)

Frustrations ran high among Exeter school officials at a budget workshop held before a sparse crowd this week.

“It’s a bind the state has put us in,” said Dr. David S. Bender, school board vice president.

“Not to mention the lack of support in Harrisburg for education funding,” said Dr. Beverly A. Martin, superintendent. “You don’t want to raise taxes because people are hurting. How do you get out of that type of hole?”

Since adopting a preliminary budget of $64.8 million in January, the district has slashed expenses by about $1.8 million, Business Manager Anne Guydish said. However, a budget shortfall of $844,298 remains.

Read more: http://readingeagle.com/article.aspx?id=379219