Sun, Dec 25, 2005 page11

• Business Quick Take

  • AGENCIES
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  ■ Labor

  Jobless rate falling: CEPD

  Council for Economic Planning and Development (CEPD) officials yesterday expressed confidence that the nation's unemployment rate will drop below 4 percent next year. The unemployment rate for the first 11 months of this year stood at 4.15 percent, and the rate for the whole year is estimated at 4.1 percent, according to the Directorate-General of Budget, Accounting and Statistics. CEPD officials said although the unemployment rate is unlikely to fall below 4 percent this year, it is expected to continue to fall with the help of the government's measures to promote employment. The CEPD said 9.93 million people were employed from January through last month, up 157,000 from the same period last year. Compared with the same time last year, the percentage of employed people in the agricultural sector decreased to 5.97 percent; that of the industrial sector increased to 35.76 percent; and that of the service sector rose to 58.26 percent, they said.

  ■ Finance

  American Express must pay

  American Express will have to pay up to US$75 million to clients who said the company collected hidden fees on foreign purchases made with its cards, under an agreement reached in Miami, Florida, on Friday. In a class-action suit launched in 2003, the company was accused of collecting exchange fees of up to 2 percent on foreign currency purchases by more than 800,000 American Express clients without telling the clients. The suit, first filed in Florida and later combined with similar suits elsewhere, led to the agreement this week in a Miami federal court under which American Express will repay all of the exchange fees collected between March 1997 and last October. Some 9 million account holders have received notifications that they are eligible for repayments, according to the agreement. Each account holder will get a minimum of US$15 and possibly much more, depending on when the accounts were opened and how much was collected.

  ■ Automakers

  Toyota suspends night shifts

  Toyota Motor Corp halted night-shift production at its factories in Japan as snowfall in parts of the country closed roads and worsened traffic, making it difficult to deliver parts and ship vehicles, the Nihon Keizai newspaper said. Twelve factories in Aichi prefecture, where Toyota is based, in addition to auto assembly plants at units in Iwate and Fukuoka prefectures have suspended production during night shifts, the newspaper reported, citing a spokesman at Toyota who was not named. The disruption will cause "no major impact," to overall vehicle production because the carmaker will compensate for the loss by boosting production on other days, the newspaper said, citing the Toyota spokesman.

  ■ Economy

  Japan slashes budget

  Japan's Cabinet on Friday approved a draft budget of nearly ?80 trillion (US$687.9 billion) for next year that would slash spending across the board. The plan, which is ?2.5 trillion, or 3 percent, smaller than the current fiscal year's main budget, would fall below ?80 trillion for the first time in eight years, reflecting government efforts to trim its spending, officials said. A budget bill will be presented to Parliament for debate and approval next month. The draft budget cuts outlays in almost all areas. Defense spending will be cut by 0.9 percent, allocations for public works projects by 4.4 percent, and official development assistance by 3.4 percent, the draft budget shows.
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