Current Events in December 2019

United Auto Workers union members at Fiat Chrysler (FCA) have voted to accept a proposed contract with the company, concluding union negotiations with the “big three” U.S. automakers.”

FCA was the last to come to terms with the union in negotiations that were about as smooth as Ford experienced and a lot smoother than the negotiations with General Motors, which resulted in a 40-day strike.

“Every full-time production employee currently at FCA will be at top rate by the end of this four-year agreement,” said Cindy Estrada, UAW vice president and director of the UAW FCA Department. “All temporary workers now have a defined pathway to full time and top pay as well.”

The new contract, similar to those signed with Ford and GM, provides a pathway for temporary and full-time workers to higher salaries. The union says it also creates parity on full-time worker health care; adds coverage for prescription drug costs for temporary workers; includes a signing bonus, and adds $4.5 billion in new investment in production facilities.

The ratified contract also includes an economic package of a $9,000 per full-time member signing bonus, performance bonuses, two 3 percent annual raises and two 4 percent lump-sum payments.

Contentious start

The process of negotiating new contracts with the three major automakers started on a contentious note. In mid-September, union employees at GM walked out when contract talks reached an impasse. It was the first walkout against GM in more than a decade.

The strike idled about 46,000 workers at more than 50 GM facilities in the U.S. The union said its members voted to walk out after it became apparent that the two sides were not getting anywhere. The union said at the time it was trying to make up some of the ground it lost when it made concessions to all the automakers in the wake of the financial crisis.

The walkout also came as GM was trying to trim expenses by closing some of its U.S. facilities. Previously, GM announced it was phasing out some of its sedans and transitioning to the automotive future, where consumers are purchasing fewer cars and being more discerning about the vehicles they buy.

Less drama

Negotiations with Ford involved a lot less drama. The union members at Ford ratified a proposed contract with more than 56 percent of its members voting to approve the new four-year work agreement.

In one rather bizarre footnote to this year’s contract negotiations, GM sued FCA last month, claiming its rival corrupted GM’s contract negotiations with the union. 

In an extraordinary move, GM filed the issue under federal racketeering laws, alleging FCA paid millions of dollars in bribes “to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time." 

FCA said it was “astonished” by the charge and accused GM of trying to disrupt its talks with the UAW, which were going on at the time. The company said it would “vigorously” defend against the report in court.

Bass Pro of Springfield, Mo., is recalling about 3,700 MR. STEAK four and five burner gas patio grills sold in the U.S., and Canada.

The gas regulator hose with attached fuel gauge can melt if it comes in contact with the bottom of the grill’s firebox, posing a fire hazard.

The firm has received nine reports of grill fires. No injuries or property damage have been reported.

The recall involves four- and five-burner models of MR. STEAK propane gas grills, models MS-4B-PG, SKU 2472264 and MS-5B-PG, SKU 2472265, that have both a fuel gauge and a fuel line that is not attached to the inside of the grill.

The grills are stainless steel with black trim and have four or five black and red dials. The words “MR. STEAK” are printed below the thermometer on the grills’ lid.

The recall also applies to SKUs 2366916 and 2366917 if the consumer added an aftermarket fuel gauge to the regulator assembly.

A label on the inside of the left compartment door or on the back of the grill identifies the model number of the grill.

The SKU is printed on the purchase receipt.

The grills, manufactured in China, were sold at Bass Pro Shops, Cabela’s, and ABT Appliance & Electronics stores nationwide and online at basspro.com and cabelas.com from May 2017, through July 2019, for about $500 for the four burner grill and $600 for the five burner grill.

What to do

Consumers should immediately stop using the recalled grills and contact MR. STEAK for a free repair kit.

Consumers may contact MR. STEAK toll-free at (833) 677-8325 or 833-MRSTEAK from 8 a.m. to 6 p.m. (ET) Monday through Friday, or online at mrsteak.com and click on “RECALL” at the top of the page, or visit mrsteak.com/repairpartskit for more information.

Toyota is recalling about 9,000 model year 2019- 2020 C-HRs, Corollas, and model year 2020 Corolla Hybrids.

The recalled vehicles are equipped with rear seat belt assemblies that have two types of locking mechanisms. One of the locking mechanisms in certain seat belts may not have been assembled correctly, causing an occupant to not be restrained properly in certain crashes -- increasing the risk of injury.

What to do

Toyota will notify owners, and dealers will inspect the rear seat belt assemblies and replace any affected seat belt assembly with a new one free of charge.

The recall is expected to begin in early February 2020.

Owners may contact Toyota at (800) 331-4331.

Let’s start with this perspective: you and the entire population of Iraq, Poland, Spain, or Canada all going somewhere at the same time. That sounds like a lot of people, right? Well, that’s what it’s going to be like for air travelers this holiday season.

Airlines for America (A4A), a trade association and lobbying group that represents major North American airlines, is forecasting that 47.5 million consumers will take to the air on U.S.-based airlines between December 19 and January 5, 2020.

A4A projects that as many as 3 million passengers will board airplanes each day in that 18-day span, an increase of 3 percent from this time last year.

Don’t worry, there’ll be plenty of seats

Travelers shouldn’t be quick to throw the airlines any shade because they believe that the flights are going to be oversold and people are going to get bumped right and left. U.S. airlines have probably taken enough heat about that over their collective greed, and many companies have decided it’s time to flip the scenario. To jumpstart that flip, airlines will offer 88,000 additional seats and an extra 884 flights per day.

"Throughout this year we've seen steady gains in air travel demand, and this winter will be no exception," said John Heimlich, Vice President and Chief Economist for Airlines for America. "Buoyed by a healthy economy and plentiful, affordable air service, travelers once again are expected to take to the skies in record numbers."

And shorter times going through security, too

The Transportation Security Administration (TSA) is also on the case. On December 1, the busiest day during the recent Thanksgiving break -- not to mention the busiest day ever -- nearly 3 million travelers passed through TSA checkpoints across the U.S. 

Despite that squeeze, 99.8 percent of all passengers skated through security in less than 30 minutes, and 99.2 percent of passengers who were in a TSA Pre✓® lane waited less than 10 minutes. 

Haven’t booked your flight, yet?

If you’re kvetching about the cost of flying over the holidays, there are still some decent prices to be had. When ConsumerAffairs checked GoogleFlights for the days that A4A projects as the lightest travel days -- Christmas Eve, Christmas Day, and New Year's Eve -- we found that sample routes from St. Louis to San Diego, Savannah to Detroit, Cleveland to Dallas, Seattle to Indianapolis, and Denver to Sarasota were as much as 114 percent lower than the other travel days A4A tracked. Your own personal hither and yon might have some good fares on those days, as well.

And, while U.S. airlines are still trying to get the same love the international carriers do, don’t forget that there are things you can do on your end to make life easier the next time you fly regardless of what airline you’re on. ConsumerAffairs has put together a guide on what add-ons might make sense the next time you buy an airline ticket. A few more dollars for checked bags and more legroom might be worth the investment.

Consumers appear to be spending heavily this holiday season, which is good for the economy. But if they’re putting too much of that spending on credit cards, that can be a problem.

YouGov, an international polling and market research company, reports that 9 percent of consumers are still paying off last Christmas’ debt. Among millennials, the percentage is 14 percent.

Bruce McClary, a vice president at the National Foundation for Credit Counseling (NFCC), says it’s much easier to get into debt than to get out of it, especially at this time of year.

“It’s tough to climb out from under it, especially if you got into debt without a plan,” McClary told ConsumerAffairs.

Planning is actually a key step in maintaining a stable financial life. Before spending money, consumers should keep track of how much they’ve already put on a credit card and have a plan for paying it back.

Many consumers, however, may just be waking up to the fact that they’ve already exceeded their holiday spending limit. Earlier this month, a LendingTree survey found that 61 percent of consumers dread the holidays because of the financial pressures they bring.

Don’t put it off

McClary urges consumers to act quickly if they feel the debt burden piling up so they can begin paying it off. Again, one of the most important first steps is planning.

“It requires sitting down and looking at both your spending and income and figuring out where you can free up extra money to go toward credit card balances because making the minimum payments clearly doesn’t cut it,” McClary said. “We’ve seen that from the number of people still carrying debt from last holiday season.”

Credit counselors often suggest two options for speeding up debt payments. The “snowball” method prioritizes paying off the lowest credit card balance first. Once that card is paid off, the money that would otherwise go to that payment can then be applied to the next-lowest balance until it is paid off, and so on.

The “avalanche” method is similar, but instead of prioritizing the account with the lowest balance, you focus on paying off the card with the highest interest rate. McClary said using a balance transfer credit card -- transferring a high-interest balance to a card providing 12 or more months of 0 percent interest -- can be a useful tool for power-paying a balance.

“But keep in mind these reduced rates or 0 percent offers are time-limited, so you’ll need to plan to pay off the balances before the introductory period expires,” McClary said.

Boosting your credit score

ConsumerAffairs has collected information about some of the best balance transfer cards here.

But you’ll notice that most are for consumers with good to excellent credit scores. If your credit score needs some work in order to qualify, McClary says the new year is a good time to take steps to improve how you look to lenders. 

“First, pull a copy of your credit report at all three agencies,” he said. “Go to annualcreditreport.com and download the free copies you are entitled to once a year. Then you can see for yourself exactly how your creditors are reporting your payment activity.”

McClary says you should also look closely at the credit reports for accuracy. Incorrect negative information will pull down your credit score. If you find it, you can contest it with the credit bureau.

Finally, it’s important that you pay all of your bills on time every month. Timely debt payment makes up about a third of your credit score.

NFCC represents non-profit credit counselors across the U.S. They charge a small fee but deliver unbiased advice and can help consumers develop and plan for getting out of debt and staying that way.

An internal review carried out by the Federal Aviation Administration (FAA) in the wake of the fatal Lion Air crash last October found that Boeing 737 MAX jets were far more likely to be involved in future crashes than Boeing regulators stated publicly, according to The Wall Street Journal. 

The FAA concluded last fall that additional crashes of the jets could have averaged one every two or three years, or 15 similar incidents globally in the next 30 to 45 years, if the plane didn’t undergo certain design changes. 

The prediction was included in a document released Wednesday at a House Transportation Committee hearing, which is investigating the FAA’s oversight of Boeing and the Max. 

Safety issues 

Despite knowing about the presence of an unsafe condition in a critical automated flight-control system, regulators declined to ground the aircraft after the first deadly crash. 

It wasn’t until a crash of an Ethiopian Airlines jet occurred in March that regulators decided to ground the aircraft worldwide. All told, the crashes claimed 346 lives.

“The FAA rolled the dice on the safety of the traveling public and let the Max continue to fly until Boeing could overhaul its MCAS software,” said Peter DeFazio, D-Ore., the chairman of the committee. The agency “failed to do its job,” he added. “It failed to provide the regulatory oversight necessary to ensure the safety of the flying public.”

The planes remain grounded today, with no timeline for a return to service. Regulators must still complete several additional steps before the plane is deemed safe to be reintroduced to flight schedules. The grounding is expected to continue into next year.

CVS Pharmacy is facing a potential fine of $3.6 million for not following California’s recycling laws. 

An investigation by the California Department of Resources Recycling and Recovery (known as CalRecycle) found that 81 of the drugstore giant’s more than 800 locations in California failed to collect recyclable materials. 

CalRecycle said Monday that the investigation also found that CVS didn’t pay the 5-cent and 10-cent redemption fees due to consumers who brought in containers with a CA CRV symbol. 

Under the California Beverage Container Recycling and Litter Reduction Act, retailers located in places without a conveniently located recycling center are required to redeem eligible containers in-store or pay a $100 per day fee. The retailer has neglected to pay $1.8 million in fees as a result of its failure to comply with the law, according to regulators. 

“Today’s action sends a message that we will hold retailers accountable for refunding consumers their nickel and dime recycling deposits,” Jared Blumenfeld, California Secretary for Environmental Protection, said in a statement. “Everyone must do their part as we work to protect our environment and ensure that all Californians have convenient access to recycling.”

Largest fine ever

The proposed fine would be the largest ever to be levied against a retailer for failing to redeem recyclables, according to CalRecycle spokesman Lance Klug. 

He added that the enforcement action is “part of a larger effort” to crack down on failures to comply with state recycling laws in the wake of the closure of rePlanet, California’s largest bottle and can recycling center chain. When rePlanet closed last August, it “increased the obligation on a lot of retailers,” Klug said. “We prioritized collection against retailers that owed the most.”

“This action comes after multiple contacts with CVS failed to resolve the issue,” Klug told The Los Angeles Times.

In a statement, CVS said it is reviewing California’s filing and that it is “committed to contributing to healthier, more sustainable communities.” The retailer is allowed to seek a hearing if it decides to contest the enforcement penalty. 

Researchers have been warning consumers about the risks associated with drinking alcohol for years. More recently, those risks have been closely tied to cancer. 

Now, a new study found that consumers could be at a higher risk of developing the disease even if consumers only consume alcohol moderately.

“Given the current burden of overall cancer incidence, we should further encourage promoting public education about alcohol-related cancer risk,” said researcher Dr. Masayoshi Zaitsu. 

How alcohol plays a role

The researchers compared over 63,000 cancer patients with those who were admitted into the hospital but were cancer-free at the start of the study. 

Participants reported on their alcohol consumption, both the frequency with which they drank and the volume of the drinks, so the researchers could determine what effect alcohol had on cancer risk. Ultimately, the study revealed that cancer and alcohol consumption are closely tied, as only those who abstained completely showed no additional risk of developing the disease. 

While higher alcohol intake was associated with a higher risk of cancer, the researchers say that light, casual drinking also came with health concerns, as consistency proved to be a bigger risk than volume. 

The researchers determined that even one drink per day over the course of 10 years could increase consumers’ cancer risk by as much as five percent, whereas two drinks per day, regardless of how long the habit has persisted, yielded similar results. 

Moving forward, the researchers hope that these findings are disseminated widely so consumers understand the full scope of the risk involved with drinking. 

Preventing cancer

A recent study conducted by researchers from Boston Medical Center yielded similar findings, and the research team called for tighter alcohol-related regulations as a way to lower cancer mortality rates. 

The study found that the cancer death rate was 8.5 percent lower in states that were stricter about alcohol policies, highlighting the potential lifesaving powers of such restrictions. 

“When thinking about cancer risk and cancer prevention, the focus tends to be on individual-level risk factors rather than environmental determinants of cancer, like public policies that affect the consumption of alcohol or tobacco,” said researcher Dr. Timothy Naimi. “Implementing effective policies to reduce alcohol consumption is a promising means of cancer prevention that merits further investigation.”

Many parents struggle to get their kids to follow healthy diets, and those who are less successful wind up being at higher risk for conditions like diabetes.  

Now, researchers from Stanford Medicine found that Type 1 diabetes could be associated with compromised brain function in children. 

“Our findings suggest that, in children with Type 1 diabetes, the brain isn’t being as efficient as it could,” said researcher Lara Foland-Ross, PhD. “The takeaway from our study is that, despite a lot of attention from endocrinologists to this group of patients, and real improvements in clinical guidelines, children with diabetes are still at risk of having learning and behavioral issues that are likely associated with their disease.” 

How the brain is affected

To understand the effect that diabetes could have on the brain, the researchers compared nearly 100 children with diabetes to nearly 60 children without the disease. 

All of the participants completed assessments that analyzed their current brain function so the researchers could determine how diabetes was affecting children in ways that many parents and experts may not realize. 

“Kids with diabetes have chronic swings in blood-glucose levels, and glucose is important for brain development,” said Dr. Foland-Ross. “It was important to capture what is going on in the brains of these kids functionally.” 

All the participants received brain scans, during which the researchers conducted a popular cognitive test that would measure the kids’ overall brain function during an activity that required their complete focus. 

In analyzing the brain scans, the researchers discovered that the children with Type 1 diabetes were on par performance-wise, but it took their brains a bit longer to get to the correct responses. Further analysis revealed that certain parts of the brain had to do more work to properly complete the tasks, though this wasn’t the case for those who didn’t have diabetes. 

The researchers hope that parents keep these findings in mind, particularly for those whose kids were diagnosed at an early age. The reason, they say, is because differences in brain function were more prominent if kids were younger at the time of diagnosis. 

“We hope that with improvements in devices for diabetes treatment, these findings will either decrease in severity or go away,” said researcher Allan Reiss. “Young brains have the most potential for plasticity and repair. But children also have a long time to live with the consequences if problems with brain function persist.” 

Would you fly on a Boeing 737 MAX? Apparently, that’s not something you are going to have to worry about for a while.

The aircraft has been grounded since March following two crashes within five months. Both disasters -- the crash of a Ryan Air jet in October 2018 and March’s crash of an Ethiopian Airlines jet -- occurred shortly after the planes left the ground. The plane’s automated flight control system has been redesigned as a result.

Yet the planes remain grounded with no timetable for a return to the sky. Boeing has consistently said it hoped for Federal Aviation Administration (FAA) recertification by the end of the year but that has begun to look unlikely.

Even when the FAA gives the MAX a green light, the grounded planes probably won’t return to the air very quickly. Pilots have to be retrained before the airlines will be ready to return the aircraft to service, something that could take months.

Only three U.S. carriers affected

In the U.S., only three domestic airlines are affected. Southwest Airlines had been operating the most 737 MAX jets before the grounding, replacing its aging fleet of regular 737s. American and United operated a smaller number of planes.

All three airlines have made adjustments since the grounding, using different types of aircraft or consolidating routes. The airlines have encountered additional costs to maintain the grounded planes which have remained idle since March.

The 737 MAX has been a major headwind for Boeing this year. It had expected to deliver a number of the new jets to airlines around the world this year and next, but it has been unable to do so because of the grounding. Total Boeing aircraft sales are down 66 percent in 2019.

Even when the 737 MAX is cleared to return to service and pilots are fully trained, airlines may be slow to resume flights. Carriers will have to rebuild consumer confidence that has been eroded, not just by the grounding but by the continued delay in redesigning the flight control system.

Back in June, Delta Airlines CEO Ed Bastian predicted it would take longer than expected to return the 737 MAX to service. Bastian, whose airline does not operate the MAX aircraft, told CNBC that he expected it would take a while for consumer confidence in the plane to return.

Blue Grass Quality Meats of Erlanger, Ky., is recalling approximately 121,083 pounds of pork bacon and ready-to-eat turkey breast.

The products contain soy, an allergen not declared on the labels.

There are no confirmed reports of adverse reactions due to consumption of these products.

The following Cajun-style items, produced from October 29, 2018, to November 19, 2019, are being recalled:

• Various weights of shrink-wrap packages containing “BLUE GRASS CAJUN STYLE TURKEY BREAST” with sell by dates from 7/1/19 to 1/9/20.
• Various weights of shrink-wrap packages containing “OLDE WORLD Cajun Style TURKEY BREAST” with sell by dates from 7/1/19 to 1/1/20.
• Various weights of shrink-wrap packages containing “Robinson’s PREMIUM Cajun Style Turkey Breast” with sell by dates from 7/12/19 to 1/16/20.
• Various weights of shrink-wrap packages containing “Troyer CAJUN STYLE TURKEY BREAST” with sell by dates from 7/18/19 to 1/21/20.
• Various weights of vacuum sealed packages containing “Troyer CAJUN STYLE BACON” with sell by dates from 1/28/19 to 2/19/20.

The recalled products bearing establishment number “P-7417” or “EST. 7417” inside the USDA mark of inspection, were shipped to retail locations in Kentucky, Michigan, Ohio and West Virginia, where the turkey products may have been offered as retail-sliced deli product.

What to do

Customers who purchased the recalled products should not consume them, but discard or return them to the place of purchase.

Consumers with questions may contact David Kegley at (859) 331-7100.

It’s very difficult to get through four years of college without taking out student loans because colleges have raised tuition much faster than the rate of inflation.

Now that student loan balances have gone past $1.6 trillion, the Center for Responsible Lending (CRL) is sounding the alarm. CRL’s president Mike Calhoun has recently been warning policymakers that rising student loan debt totals pose the same systemic risk that subprime mortgages did a decade ago.

In an interview with NPR, Calhoun says there is one glaring similarity between the subprime mortgage crisis and today’s growing student loan balances. In the early 2000s, he says mortgage brokers were writing loans without any regard for whether the borrower could repay the loan. He says student loan lenders are doing the same thing now.

“Once again, it's the mismatch between the debt and the borrower's income, their ability to repay," Calhoun told the network.

Pitfalls for students

The education website TheBestSchools.org has been warning students about debt for years. Its editors say that there are a number of risks when young people, who may have never even had a credit card, go on the hook for tens of thousands of dollars of debt.

“The most obvious risk is that you won't finish the degree program for which you are taking the loan, and you then end up leaving the school without anything to show for except some uncomfortably large debts,” the organization says on its website.

An even bigger risk is the student graduates with a degree that has not prepared them for the workplace and is not marketable. They take a low-paying job but are still faced with huge loan payments each month.

Overly alarmist?

Some analysts discount Calhoun’s warnings as overly alarmist, noting that student loans are almost impossible to walk away from. They can’t be discharged even in bankruptcy.

But Calhoun and others say that doesn’t mean borrowers can simply stop paying, especially if they have no money or job. And that appears to be what’s happening.

At the beginning of this year, Ascent’s Student Loan Debt Statistics for 2019 showed 5.2 million people who had taken out federal student loans were in default. That doesn’t count those defaulting on loans issued by private lenders.

The report showed that in 2018, 20 percent of all student loan borrowers were behind on their payments. The report also showed that it’s not just recent graduates who are still writing checks each month.

In 2018, people between the ages of 35 and 49 had the highest student loan debt totals, owing $548 billion that presumably, they have been paying on since graduation.

Student loans should be taken out with much care and guidance, but if you are considering a student loan, ConsumerAffairs has collected hundreds of reviews on the top lenders here. 

An online company that enables U.S. residents to obtain a copy of their birth certificate has exposed nearly 800,000 applications, according to Fidus Information Security. 

“More than 752,000 applications for copies of birth certificates were found on an Amazon Web Services (AWS) storage bucket,” according to TechCrunch, which verified the discovery of the UK-based security firm. “The bucket wasn’t protected with a password, allowing anyone who knew the easy-to-guess web address access to the data.” 

TechCrunch didn’t disclose the name of the company in question in order to protect the privacy of those who used the service. 

The applications involved in the exposure dated back to 2017 and contained information like the applicant's name, their date of birth, current home address, email address, and phone number. They also included other personal information, such as previous addresses and names of family members.

TechCrunch said that as many as 9,000 new applications have been added on a daily basis since it started looking into the exposure. 

Company hasn’t responded

Attempts to notify the company of the privacy issue have allegedly been met with “only automated emails” and no action so far. Amazon said it would also notify the company of the privacy issue, but officials added that they can’t take direct action to resolve the matter.

The safety of consumers’ online data has been called into question numerous times over the past several years. Earlier this year, investigators found that the medical data of around 5 million U.S. consumers could be easily accessed online. 

Last month, a privacy suit was filed against Amazon’s cloud division alleging the company “obtains and stores biometric data on behalf of its customers.” 

A report published in June by Comparitech estimated that there have been roughly 9,700 reported breaches involving over 10.7 billion records since 2008.