Briefcase

Income gap grows among U.S. workers

WASHINGTON – Fifty percent of U.S. workers earned less than $26,364 last year, reflecting a growing income gap between the nation’s rich and poor, the government reported Thursday.

There were fewer jobs, and overall pay was trending down – except for the nation’s wealthiest. The number of people making $1 million or more soared by more than 18 percent from 2009, the Social Security Administration said, citing payroll data based on W-2 forms submitted by employers to the Internal Revenue Service.

Despite population growth, the number of Americans with jobs fell again last year, with total employment of just under 150.4 million – down from 150.9 million in 2009.

Associated Press

Technology workers to strike in Finland

HELSINKI – Finnish union leaders say that about 30,000 technology industry workers will begin a two-week strike, expected to halt most of the country’s exports.

The strike comes after workers Thursday rejected a mediation proposal in a labor dispute over pay and working conditions. It will affect 41 companies, mostly in the machinery, metals and mining sectors.

The strike, to begin today, follows last week’s agreement between leaders of the country’s central trade unions and main employers organizations on a centralized labor contract that would have hiked wages by 4.3 percent over two years. It was not immediately clear why technology workers rejected the deal.

Associated Press

Jack Daniel’s distiller may get hefty tax bill

NASHVILLE, Tenn. – For decades, Jack Daniel’s whiskey has celebrated its small Tennessee hometown of Lynchburg with folksy, black-and-white advertisements urging folks to slow down and have a sip. Now local officials want the maker of the world’s top-selling whiskey to pay a bigger bar tab as they struggle with their budget. How does up to $5 million sound?

A measure approved by the Moore County Council asks the Tennessee legislature to authorize a local referendum on whether the distillery should pay that much in new taxes on the 500,000 barrels it fills with whiskey each year.

The 145-year-old distillery now pays $1.5 million in local property taxes.

For those with thirsty throats fearing a retail price increase if the proposal passes, corporate officials would not speculate. But Tom Beam, senior vice president and general manager of production at the distillery, offered this sobering thought: “We’d be out several million dollars a year. We’d have to look to save money.”

The proposal will go to the General Assembly early next year. If authorized there, the referendum in the county could be held as early as next November.

Associated Press

Earnings roundup

Southwest Airlines: While its airline business did well during the peak travel season, Southwest posted a $140 million third-quarter loss because its fuel-hedging bets turned sour when oil prices fell this summer. It was Southwest’s first loss in two years – the last one was also due to hedging.

Microsoft: Microsoft’s earnings for the latest quarter edged up 6 percent to match analyst estimates. The results for the July-September period were highlighted by revived growth in the division that includes the software maker’s Windows franchise.

Phillip Morris: Cigarette maker Philip Morris International Inc. said its third-quarter net income grew nearly 31 percent as it sold more cigarettes, particularly in Asia, and raised prices.