NYT > Home Page: In Court, N.A.A.C.P. Adds Voice Against Bloomberg’s Soda Ban

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In Court, N.A.A.C.P. Adds Voice Against Bloomberg's Soda Ban
Jan 24th 2013, 00:55

As the American soft-drink industry argued its case in court on Wednesday against Mayor Michael R. Bloomberg's restrictions on sugary drink sizes, a prominent local group stood by its side: the New York chapter of the N.A.A.C.P.

The obesity rate for African-Americans in New York City is higher than the city average, and city health department officials say minority neighborhoods would be among the key beneficiaries of a rule that would limit the sale of super-size, calorie-laden beverages.

But the N.A.A.C.P. has close ties to big soft-drink companies, particularly Coca-Cola, whose longtime Atlanta law firm, King & Spalding, wrote the amicus brief filed by the civil rights group in support of a lawsuit aimed at blocking Mr. Bloomberg's soda rules, which are set to take effect in March.

Coca-Cola has also donated tens of thousands of dollars to a health education program, Project HELP, developed by the National Association for the Advancement of Colored People. The amicus brief describes that program, but not the financial contributions of the beverage company. The brief was filed jointly with another organization, the Hispanic Federation, whose former president, Lillian Rodríguez López, recently took a job at Coca-Cola.

The N.A.A.C.P.'s New York office referred questions to the American Beverage Association, the soft-drink industry's lobbying group and the primary plaintiff in the suit against the city's new soda rules. The association referred questions to Coca-Cola, which did not immediately respond.

At the hearing on Wednesday in State Supreme Court in Manhattan, lawyers for the beverage industry argued that the Board of Health had overreached its authority by unilaterally ratifying the new rules. The city rejected that argument, saying the restrictions were well within the board's purview to regulate public health matters.

The hearing ended with no immediate ruling; Justice Milton A. Tingling Jr., who presided, adjourned without comment. The beverage industry said it was requesting a stay of the soda restrictions while the case was being resolved.

While the industry has successfully fended off higher soda taxes and restrictions across the country, it has been increasingly under siege from public health officials concerned about the adverse effects of sugary drinks.

New York unveiled its soda plan in May, and other states and cities have since pursued similar measures. On Wednesday, Gov. Deval L. Patrick of Massachusetts proposed that soda no longer be exempt from the state's sales tax; lawmakers in Hawaii and Nebraska have also recently proposed higher taxes on sales of sugary drinks.

In its amicus brief, the N.A.A.C.P. acknowledged that obesity was a significant problem among blacks and Hispanics. But the group urged the city to create a more holistic program to attack the problem, including an increase in financing for physical education programs in public schools.

Mr. Bloomberg's plan, the brief argued, would disproportionately hurt minority-owned small businesses, which faced competition from larger convenience stores like 7-Eleven that would be exempt from the soda restrictions because of a quirk in New York's regulatory structure.

"At its worst, the ban arbitrarily discriminates against citizens and small-business owners in African-American and Hispanic communities," the brief said.

The plan has also been ardently opposed by several members of the City Council's Black, Latino and Asian Caucus.

The city's health commissioner, Dr. Thomas A. Farley, said Wednesday that he was "disappointed" the N.A.A.C.P. had opposed the plan. "African-Americans are suffering disproportionately in this crisis, and I don't think the N.A.A.C.P. should be siding with the big soda companies," he said. "They are attacking public health officials who are trying to respond to that crisis."

According to the health department, about 70 percent of black New Yorkers and 66 percent of Hispanic New Yorkers are obese or overweight, compared with 52 percent of white non-Hispanic residents, based on a 2011 survey.

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NYT > Home Page: Algerian Gas Facility Did Not Have Armed Guards

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Algerian Gas Facility Did Not Have Armed Guards
Jan 24th 2013, 01:16

HOUSTON — The companies operating the gas facility in the Sahara that was attacked last week had chosen not to deploy armed guards inside the sprawling compound, leading security analysts to question whether the assault by more than 30 Islamist militants might have been slowed if security had been tighter.

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Until the siege on the remote In Amenas facility last Wednesday, dozens of North African desert camps were thought to be virtually impregnable, with steel-wire fences, long-range reconnaissance equipment and army patrols amid the sand dunes.

But when the attackers came, taking dozens of foreign workers hostage, they faced little opposition. Armed with mortars, grenade launchers and .50-caliber machine guns, the militants were an overwhelming force. But security experts said the armed guards found at most production and drilling facilities in North Africa and the Middle East might have at least slowed the terrorists, letting more workers escape.

"The attack clearly caught everybody by surprise," said Geoff D. Porter, a political risk and security consultant for oil companies in North Africa. "Had there been armed guards, there could have been a different outcome."

The Algerian government dismissed suggestions that it could have stopped the assault, which led to a major hostage crisis that left at least 27 foreigners dead.

An Algerian official, who requested anonymity because of the delicacy of the matter, said the attack was conducted in the dark by a heavily armed force that moved quickly over the border from Libya, making it hard for security forces to repel. Also, the official said, the government learned later how the militants were able to wage such a well-planned assault on the facility: one had worked there as a driver and presumably knew the layout.

Algerian law prohibits armed foreign security personnel, but it permits private Algerian armed guards. The operators of the gas facility — a joint venture by BP, the Norwegian company Statoil and the Algerian national oil company Sonatrach — decided to rely solely on the many Algerian gendarmes and soldiers who patrolled the In Amenas area.

Some oil companies operating in Algeria do use military guards or private Algerian security forces. "It's company-specific," said Mike Lord, chief executive of the Stirling Group, which oversaw security at the In Amenas camp. There are risks to having armed security personnel at oil or gas sites, Mr. Lord said, including explosions that might be caused by stray bullets.

Algerian security forces provided "perimeter" and "zone" security at the In Amenas base, Mr. Lord said, and the Stirling Group organized escorts of Algerian forces to accompany employees when they traveled between secured zones. But there were no armed guards within the secured zones, Mr. Lord said, under the policy set by BP and Statoil.

There was a broad fence perimeter, and it was monitored 24 hours a day. No one could come near the camp without an identification badge, and no one without official permission could travel by air or road nearby. Attacks on Algerian oil and gas sites have been rare, even during the civil war of the 1990s, officials said.

Sonatrach has a security department that employs armed guards. And according to the Norwegian newspaper Verdens Gang, Algeria gave permission in 2011, after civil war broke out across the border in Libya, for private armed guards to be used at In Amenas, one of the country's largest natural gas fields. But BP and Statoil said they did not want the legal responsibility.

"We and Statoil decided not to have armed guards on site," said Robert Wine, a BP spokesman. "Given the large military presence in the area, we took the view that armed guards were not required on the site."

A Statoil spokesman, Bard Glad Pedersen, said the company would review its security procedures. "We will go through all elements of this terrible event, including questions connected to security," he said in an e-mail.

That review should be conducted by an independent panel, said Stein Bredal, a former member of the Statoil board, who contends that the company underestimated the risks in Algeria. "To be sure that the truth really comes forward, it's much better that people can speak frankly, and they have a duty to report whatever they've been through," he said in an interview.

Bernard Duncan Lyng, who was head of corporate security and contingency units at Statoil from 1984 to 1992 and worked with the company until 2000, said that when Statoil set up a facility in Nigeria in the early 1990s, it hired armed guards.

"The first thing we did was to plan where would the best place be to have our site, safety- and security-wise, and establish a system of armed guards, and we did that," Mr. Lyng said.

But while rare, attacks on oil company personnel in Algeria have occurred. In 1994, during the civil war between Algiers and Islamist militants, two Schlumberger engineers were executed at a Sonatrach site by militants.

Most big oil and gas companies have armed guards in their facilities, said Pierre Montoro, managing director of Erys Group, a French company that provides security to multinational companies in Algeria and around the region. "People should be armed on these sites to contain the attack, for a few minutes, anyway, to allow the authorities to intervene."

Executives in the oil and gas industry said that their companies could handle the extra security concerns, but that new defense measures would be costly.

"To recreate confidence, it will take a lot of hand-holding with insurance companies, service companies and investment bankers," said Badr Jafar, president of Crescent Petroleum, a regional oil company based in the United Arab Emirates.

Others were more dire in their predictions of higher expenses, and ultimately higher prices at the pump. "This is going to drive up costs probably 20 percent," said Dragan Vuckovic, president of Mediterranean International, an oil service company that operates in Libya and Iraq.

Clifford Krauss reported from Houston and Nicholas Kulish from Bergen, Norway. Stanley Reed contributed reporting from London, Adam Nossiter from Algiers and Scott Sayare from Paris.

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NYT > Home Page: Fashion Review: Spring Couture Collections in Paris — Fashion Review

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Fashion Review: Spring Couture Collections in Paris — Fashion Review
Jan 23rd 2013, 22:42

Valerio Mezzanotti for The New York Times

At the spring couture shows in Paris this week, God was in the details, like the beading of a gown by Valentino.

PARIS — Outwardly, the spring haute couture shows were about the joys of gardening and how many brides you could put on a runway. (Dior, 5; Chanel, 2, though Karl Lagerfeld might have upstaged Raf Simons of Dior by having a pair of lesbian brides.) Not to be left out, the house of Valentino also dug a garden theme.

"Really, we didn't call Karl and Raf," Pierpaolo Piccioli, who, with Maria Grazia Chiuri, designs Valentino, said with a laugh.

It would be O.K. if they had, since the Valentino clothes owed their pure lines and filigree embroidery to garden architecture — mazes, terraces, curling ironwork — from the Renaissance. Traced in piping on a cream evening cape or embossed on the stiff skirt of a wool day dress, these patterns are gutsy. They also link Valentino to Italian culture.

What Mr. Piccioli and Ms. Chiuri have gained over the last couple of years at Valentino, after a rocky start, is control over their form. This collection has, among other qualities, a strong sense of line, so that the cut and finishing of, say, a caped dress or a deep red strapless gown, stand out.

The designers are learning to use the extraordinary skills of a couture atelier to be more self-critical and demanding. In just two seasons at Dior, Mr. Simons has used its workrooms to further his ideas and expand his thinking. Mr. Lagerfeld is miles ahead of everyone. He sketches every design, and then turns those sketches over to the women in charge of Chanel's ateliers, who know how to interpret his drawings. He is able to get precisely what he wants.

That precision of thought, in a business of compromises, is the virtue of couture, and it's what Ms. Chiuri and Mr. Piccioli are closer to acquiring. It was evident in their morning-light palette of creams, light tan and pearl white, and in their lace pieces. If the Valentino designers can relate emotionally to Italian stone and iron, they may have found a vital creative key.

A garden is nothing if not the promise of continuity amid change — the change of colors and seasons, the impertinent arrival of weeds and drought. The garden goes on. By showing some of the same styles he first introduced at Dior, like a sharper Bar jacket trouser suit, Mr. Simons was essentially putting in his hardy perennials. Let's put it another way: the Chanel cardigan jacket has roots deep in the Paris soil. So does the Bar, but it needs to be cultivated. Mr. Simons is starting that process.

The remarkable thing about this collection, aside from its colors and ultralight layers, was how easily it introduced asymmetry without pushing the "It's unwearable!" button. More than a decade ago, John Galliano brought deconstruction to Dior. Everything was upside down and pulled apart. It was great, but how many people actually wore the clothes the way he showed them?

Mr. Simons's idea is clearest in a suit. Consisting of three pieces, it has a cropped sleeveless jacket, a stiffened camisole with a Bar peplum and a slim skirt with a contrasting hem. There are four colors in all, four fabrics. Each shape is incredibly simple, but it's the proportion of the shapes, along with the cuts and layering of colors, that makes the suit completely different. I hesitate to say that it redefines the suit, but it sure comes close.

"The idea is to make the shoulders beautiful," Mr. Lagerfeld said. Some of the built-out collars of suits and dresses will not flatter every figure, but filling in necklines with white sequined yokes certainly puts the face in good light. Chanel's misty forest, which also featured dresses with blood-red flowers against a black embroidered ground, provided a warm note of melancholia. It's an underrated mood in fashion, creating a richness only for those inclined to embrace it.

Observing a cream chiffon gown plumped at the bodice with pale gray feathers, I remarked to Mr. Lagerfeld about the gray.

"But it would look flat if the feathers were only white," he said.

Indeed. The same could be said about many things.

The other spring couture shows were good, but not as inspiring. Giorgio Armani put tension into his tailoring, with closefitting silk pants and smart jackets alternating with sexy tops. Baton-shaped ornaments wound into garments were inexplicable, but the jostle of chevron stripes and micro jacquards made a distinctive statement. Donatella Versace also emphasized shoulders in a collection that joyfully subverted pinstriped power suits by repeating the pattern in neon minkand metal mesh. The techniques were impressive.

Although Giambattista Valli had some sweet fabrics, his molded shapes looked trapped in couture aspic. He's capable of a modern attitude. Which is exactly what Bouchra Jarrar showed with her skimmy dresses, an ink-plumed corset and her standout coats in houndstooth and ribbed gray silk.

A version of this review appeared in print on January 24, 2013, on page E1 of the New York edition with the headline: And Precisely So .
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NYT > Home Page: Union Membership Drops Despite Job Growth

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Union Membership Drops Despite Job Growth
Jan 23rd 2013, 23:45

Max Whittaker for The New York Times

Firefighters protested a law curbing collective bargaining rights in Wisconsin in 2011. Union membership fell by 13 percent in the state last year.

The long decline in the number of American workers belonging to labor unions accelerated sharply last year, according to data reported on Wednesday, sending the unionization rate to its lowest level in close to a century.

The Bureau of Labor Statistics said the total number of union members fell by 400,000 last year, to 14.3 million, even though the nation's overall employment rose by 2.4 million nationwide. The percentage of workers in unions fell to 11.3 percent, down from 11.8 percent in 2011, the bureau found in its annual report on union membership. That brought unionization to its lowest level since 1916, when it was 11.2 percent, according to a study by two Rutgers economists, Leo Troy and Neil Sheflin.

There were several reasons for the steep one-year decline in union membership, according to labor experts. Among the factors were new laws that rolled back the power of unions in Wisconsin, Indiana and other states, the continued expansion by manufacturers like Boeing and Volkswagen in nonunion states and the growth of sectors like retail and restaurants, where unions have little presence.

"These numbers are very discouraging for labor unions," said Gary N. Chaison, a professor of industrial relations at Clark University in Worcester, Mass. "It's a time for unions to stop being clever about excuses for why membership is declining, and it's time to figure out how to devise appeals to the workers out there."

Labor unions have boasted of their political successes in helping re-elect President Obama and in helping Democrats pick up seats in Congress.

But the figures announced by the bureau point to grave problems for the future of organized labor. The portion of private sector workers in unions fell to just 6.6 percent last year, from 6.9 percent in 2011, causing some labor experts to question whether private sector unions were sinking toward irrelevance. Private sector union membership peaked at around 35 percent in the 1950s.

The report showed particular drops in union membership in two groups where unions have long been strong: local government employees and manufacturing workers.

Union membership showed sharp drops in Wisconsin, which passed a law in 2011 curbing the collective bargaining rights of many public employees, and in Indiana, which enacted a right-to-work law last February that may have prompted many workers to drop their union membership.

Such laws bar requiring employees at unionized workplaces from being made to pay union dues or fees. The bureau's report showed that union membership fell by 13 percent last year in Wisconsin and by 18 percent in Indiana — both unusually large numbers for a single year.

Barry T. Hirsch, a labor economist at Georgia State University, said an analysis he conducted found that the number of government employees in Wisconsin belonging to a union slid by 48,000 last year, to 139,000 from 187,000, as many public sector workers evidently decided to quit their unions after the Republican-led legislature stripped them of most of their bargaining rights.

Speaking about the nation as a whole, Professor Hirsch said, "I am really surprised that the drop in unionization was as large as it is in a single year, and it was particularly big in the public sector. It does seem you are seeing reductions in some of the states that you might expect."

For instance, in Indiana, where the right to work law took effect last March, unionization dropped to 9.1 percent from 11.3 percent in 2011. Michigan enacted a similar law last month.

The bureau said public sector union membership — long a labor stronghold — fell to 35.9 percent in 2012, from 37 percent the previous year. The number of government workers in unions fell by 234,000, as many teachers, police officers and others lost their jobs. There were 7.3 million public employees in unions, compared with seven million private sector workers.

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NYT > Home Page: Apple’s Profits Are Flat, and Stock Drops

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Apple's Profits Are Flat, and Stock Drops
Jan 23rd 2013, 22:13

Luke Macgregor/Reuters

Apple sold slightly fewer iPhones than expected in the fourth quarter of 2012.

While it would take a crowbar to pry iPhones and iPads out of the hands of their fans, investors have been falling out of love lately with the company that makes them.

On Wednesday, Apple did not appear to provide a strong enough reason for investors to warm to it again. It said its profits were flat because of higher manufacturing costs, even as revenue rose 18 percent. The results exceeded analysts' profit forecasts and just missed their revenue estimates.

Apple said revenue from the iPhone jumped 28 percent during the crucial holiday shopping season, when the company's products fly off store shelves like they do at no other time of the year.

The results arrived with an unusual level of anticipation, even for a company as high-profile as Apple, because of anxiety among some investors about Apple's ability to sustain its growth and create new hit products. Apple's stock has lost about a quarter of its value since September, erasing more than $170 billion of its market value.

The results sent Apple's stock tumbling 10 percent during after-hours trading.

Apple said its net income for its fiscal first quarter ending Dec. 29 was $13.1 billion, or $13.81 a share, compared with $13.1 billion, or $13.87 a share, in the same period a year earlier.

The company's revenue was $54.5 billion, up from $46.33 billion a year ago.

Those results compared to the average earnings estimate of $13.44 and average revenue estimate of $54.73 billion from analysts surveyed by Thomson Reuters. Apple itself had previously told Wall Street to expect earnings of $11.75 a share and revenue of $52 billion, though the company has a long history of low-balling its own financial forecasts — which are then ignored by analysts.

"Sentiment has turned super-pessimistic on Apple, where they've gone from being able to do no wrong to suddenly being able to do no right," said Rob Cihra, an analyst at Evercore Partners. "I tend to think the company's momentum is a heck of a lot more solid than people are concerned about."

Mr. Cihra said Apple's iPhone and iPad sales missed some of the most optimistic forecasts, but "all in, it was a pretty darned good quarter."

One factor that hurt comparisons between Apple's most recent holiday quarter and the prior one was that its 2012 quarter was a week shorter.

Analysts were especially worried, headed into the holiday quarter, about Apple's profit margins, which the company had warned would decline as a result of a near total overhaul of the company's product line. Apple said new products do not yield profits during their earliest days that are as juicy as when the company is manufacturing them in bigger volumes.

While new products are a routine thing for a company like Apple, it said the sheer number of new gadgets it released just before or during the holidays, including the iPhone 5, iPad Mini and new Mac computers, was unusual.

But negative sentiment around Apple has further hardened amid reports that the company had cut orders for components with some of its parts suppliers, potentially suggesting weak demand for the iPhone.

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NYT > Home Page: Apple Revenue Misses Again, iPhone Disappoints

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Apple Revenue Misses Again, iPhone Disappoints
Jan 23rd 2013, 21:58

SAN FRANCISCO (Reuters) - Apple Inc reported quarterly revenue that slightly missed Wall Street expectations as sales of its flagship iPhone came in below target, sending its shares down more than 4 percent.

Reuters

The world's largest technology company shipped 47.8 million iPhones, lower than the roughly 50 million that Wall Street analysts had predicted. Sales of the iPad came in at 22.9 million in the fiscal first quarter, about in line with forecasts.

Sources this month have pointed to production cutbacks at Apple's component suppliers as a sign that demand may be waning for the iPhone, which accounts for half of the company's sales, and the iPad.

The disappointing numbers come after Apple undershot revenue targets in the previous two quarters. The results will prompt more questions on what Apple has in its product pipeline, and what it can do to attract new sales and maintain its growth trajectory.

Apple said on Wednesday its fiscal first quarter revenue rose to $54.5 billion, below the average analyst estimate of $54.73 billion, according to Thomson Reuters I/B/E/S.

For the fiscal first quarter it posted net income of $13.07 billion, or $13.81 a diluted share, compared to $13.06 billion, or $13.87 a share, a year earlier.

(Reporting By Poornima Gupta; Editing by Bernard Orr)

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NYT > Home Page: Pentagon Says It Is Lifting Ban on Women in Combat

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Pentagon Says It Is Lifting Ban on Women in Combat
Jan 23rd 2013, 20:39

Lynsey Addario for The New York Times

Cpl. Christina Oliver, center, during a patrol in Afghanistan in 2010.

Defense Secretary Leon E. Panetta is lifting the military's ban on women in combat, which will open up hundreds of thousands of additional front-line jobs to them, senior defense officials said on Wednesday.

The groundbreaking decision overturns a 1994 Pentagon rule that restricts women from many positions in the infantry and artillery, even though in reality women have found themselves in combat in Iraq and Afghanistan, where more than 20,000 have served. As of last year, more than 800 women had been wounded in the two wars and more than 130 had died.

Defense officials offered few details about Mr. Panetta's decision but described it as the beginning of a process to allow the branches of the military to put it into effect. Defense officials said Mr. Panetta had made the decision on the recommendation of the Joint Chiefs of Staff.

Women have long chafed under the combat restrictions and have increasingly pressured the Pentagon to catch up with the reality on the battlefield. The move comes as Mr. Panetta is about to step down from his post and would leave him with a substantial legacy after only 18 months in the job.

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