Chicago Cop Wants Pay for BlackBerry Hours

August 24, 2010 (PLANSPONSOR.com) – A city of Chicago Police Sergeant has sued his employer over allegations he did not receive requisite overtime pay for hours spent responding to work-related issues on his BlackBerry.

Sergeant Jeffrey Allen charged in the suit filed in U.S. District Court in Chicago that he had to respond to e-mails and calls about various police investigations over the last three years and that he was not paid for the hours spent doing so beyond his normal work shift.

By not compensating Allen and other police personnel mandated to carry a BlackBerry or other hand-held device, the city and police department violated the federal Fair Labor Standards Act (FLSA), Allen charged in the suit.  Allen asked that the suit be granted class-action status to represent all police employees who likewise have to carry a hand-held device.

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Attorney Paul Geiger, one of Allen’s lawyers, told the Chicago Sun-Times that Allen was effectively forced to carry the BlackBerry while an investigator with the police gang unit since Geiger claimed it was deemed a perquisite for the gang unit assignment. The unit detectives had to respond to supervisors’ calls on cases and items such as obtaining search warrants.

“Over a period of years, I am confident there are hundreds of hours,” Geiger told the Sun-Times. “We believe we can prove it’s a requirement for people who want to work in the gang-investigation unit. If you tell them you’re not going to work outside your work hours and don’t want a BlackBerry, you’re not going to work in the unit.”

The lawyer told the newspaper that Allen, a 20-year veteran, won a special commendation for his role in investigating more than a dozen gang murders on the West Side.

“We have reached a point in society where it’s very easy to get a whole lot of unpaid work from employees just by the use of these devices,” Geiger said, according to the Sun-Times.  “I want people to get paid for the work they do.”

U.S. District Judge Elaine E. Bucklo has scheduled a September 9 hearing in the case. The city has until September 7 to respond to the suit, according to court records.

The Allen suit is here.

Jeffries Says Asset Management M&A Activity to Rebound

August 24, 2010 (PLANSPONSOR.com) - While global transaction activity for asset managers slumped during the first half of 2010, a growing backlog in deal activity will play out over the next 12-18 months, according to Jefferies’ Financial Institutions Group.

While 2009 saw record assets under management (AUM) transacted despite a decline in the total number of deals, the first six months of 2010 have seen more muted transaction activity. According to a press release, at $437 billion in the first six months, total AUM transacted was in line with 2001, when just under $900 billion of AUM was transacted over a 12-month period, and well below the $2 trillion-plus levels in 2006-2009.   

Also, with 51 transactions during the first half of this year, 2010 has thus far more closely resembled the early years of this decade when approximately 100 deals were announced on average each year. By comparison, worldwide M&A activity across all industry sectors increased by 4% in the first half of 2010 relative to the first half of 2009, and 9% in terms of deal value.  

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“Turning Tides,” a review of global asset management M&A during the first half of 2010 published by Jefferies, notes that, as the asset management industry adapts to post-recession conditions, the transaction environment will seek a ‘new normal’ in the months ahead.   

Jefferies expects the following trends to play out during next 12 months:  

  • Overall deal volumes will increase, as strategically driven transactions replace and exceed the hole in deal activity left by the winding down of divestiture activity. Although divestiture activity is expected to continue as large financial institutions re-assess strategic direction and focus on core businesses, divestitures will represent a smaller portion of deal activity.  
  • Independent asset managers will gradually return to the transaction landscape. As sellers continue to shift their focus from business preservation brought on by the financial crisis to executing their strategic plans, they will seek partners to help them grow. In addition, as nearly three years have passed since the onset of the financial crisis, the backlog of individual owners needing to address retirement and estate planning has increased. Lastly, as strategically-driven transactions come to the forefront, buyers will be more willing to pay strategic premiums, ultimately enticing sellers to the negotiating table.  
  • Investors will continue to increase their allocations to global / international portfolios and traditional fixed income, thus making targets with those capabilities the most highly desired among buyers looking to fill out their product suites. Managers specializing in emerging markets investment strategies, particularly those with local presence in their investment markets, will garner particularly strong interest among buyers.  
  • Asian and emerging market buyers will join U.S.- and U.K.-based pure-play asset managers as the predominant buyers of asset management businesses. As economic growth in their home markets have strengthened their resolve and filled their war chests, buyers from Asia and emerging market countries will seek to expand both their product lines beyond their local product expertise and distribution presence beyond their home market.  
  • As a result of a looming economic recovery and hopeful return to less volatile equity markets, at-scale asset managers will look to the public markets as a means to secure liquidity while maintaining control of their businesses. IPO activity in the coming months, assuming cooperative global equity markets, will exceed historical levels, as more firms look to the public markets in the face of a narrowed universe of asset management buyers.  

 

A copy of “Turning Tides” can be requested at http://www.jefferies.com/FIG/insight.

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