Investing July 1, 2003

June Job Cuts Lowest Since November 2002

July 1, 2003 (PLANSPONSOR.com) - Announced job cuts by US employers dropped for the second straight month in June to the lowest level in 31 months.
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According to a monthly report from outplacement firm Challenger, Gray & Christmas, planned employment reductions dipped 13% to 59,715 in June from the 68,623 announced in May. May’s figure in turn, was a whopping 53% lower than April’s 146,399 (See  Challenger: May Job Cuts Dive to 30-Month Low ). The June 2003 figure was also 37% lower than the 94,766 job cuts announced in June 2002, according to Challenger.

On a quarterly basis, employers announced 274,737 job cuts in the second quarter, which is 23% lower than the 355,795 announced in the January through March 2003 period and 6% lower than the 292,393 figure announced in the second quarter of 2002. Year to date, there have been 630,532 announced job cuts, 14% below the mid-year total recorded in 2002 (735,527).

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To put these figures in perspective, by June 2001, the largest job-cut year on record, employers had announced 777,362 job reductions.

While June was only the second time in 2003 that the government/non-profit sector led all other industries in monthly job cuts (7,728), it has managed to build a substantial lead in year-to-date job cuts. The 136,493 job cuts announced in that sector between January and June is 75,650 or 124% higher than the second-ranked retail sector (60,843).

Compliance June 30, 2003

Court: Intel Spammer Didn't Trespass

June 30, 2003 (PLANSPONSOR.com) - The California Supreme Court handed an ex-Intel worker a victory in his six-year legal dispute with the technology giant over 30,000 e-mails he sent critical of his former employer to staffers at work.
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>In a four to three decision, the state high court found that California’s trespass law requires evidence of damages, which wasn’t present in the case against former Intel employee Ken Hamidi, according to a report on CNET News.com.

“After reviewing the decisions analyzing unauthorized electronic contact with computer systems as potential trespasses to chattels, we conclude that under California law the tort does not encompass, and should not be extended to encompass, an electronic communication that neither damages the recipient computer system nor impairs its functioning,” the court wrote.

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>In March, Intel had asked the California Supreme Court to uphold an earlier legal ruling that found Hamidi had trespassed on its servers by sending thousands of unwanted e-mails to staff at work, dating back to 1996. The servers were private property, the company argued.   Hamidi, who charged unfair labor practices at the chip giant in the e-mails after his 1995 dismissal, contended that he had the right to express his opinions based on the First Amendment (See  CA Supreme Court Deciding E-mail Spam Free Speech Case). 

>Chuck Mulloy, an Intel spokesman, said the company was “disappointed in the court’s decision. We’re studying the opinion to assess our options in the event that Hamidi resumes spamming against Intel,” according to CNET News.com.

As with many free speech issues, the case generated widespread interest.  On the side of Intel, eight friend of the court petitions were filed, including the US Chamber of Commerce and eBay Inc.  However, to Hamidi’s support have come the American Civil Liberties Union and the Service Employees International Union.

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