The Department of Labor has 

announced multiple programs to 

aid dislocated workers in the 

Midwest to assist in the cleanup 

and recovery resulting from 

damage caused by recent flooding and tornadoes. 

"We want to make information 

easily accessible and help quickly available to 

Americans affected by the devastating flooding 

in the Midwest," said Secretary of Labor Elaine 

L. Chao. "In addition to our toll-free telephone 

number, we've set up a Midwest Flood Recovery Assistance Web page to guide affected 

residents on unemployment insurance, personal safety during cleanup operations and 

 (See MIDWEST FLOODING, pg. 3)

DOL Awards Workers in WI, NC 

Assistance Grant Funding 

DOL Settlement Secures $11.2 

Million for Enron Pension Fund 

Court Orders Companies in TX, 

CO to pay Back Wages 

DOL Awards MO Workers over 

$1.7 Million Assistance Grant 

DOL Recovers over $25 Million 

for 5 MI Union Pension Plans 

Secretary Chao stands for the National Anthem with 

Homeland Security Secretary Chertoff, Attorney General 

Mukasey and Interior Secretary Kempthorne at the National Police Officers’ Memorial Service. 

(DOL Photo/Douglas Sonders) 

Secretary of Labor Elaine L. 

Chao delivered the keynote 

speech at the 2008 National 

Peace Officers’ Memorial Service 

in May, the capstone event of 

the Fraternal Order of Police’s 

National Police Week. 

“Each and every day, men and 

women in law enforcement put 

themselves at risk to keep their 

fellow Americans safe and secure,” Secretary Chao said. “As 

President George W. Bush has 

said many times before, it takes 

a special kind of person to serve 

in law enforcement. Most people run from danger. Law enforcement officers run toward 

it.” 

Secretary Chao, who gave the 

speech on behalf of President 

George W. Bush, was joined at 

the memorial service by Attor- 

 (See POLICE MEMORIAL, pg. 3) 

Secretary of Labor Elaine L. Chao delivers keynote speech at the 2008 

National Peace Officers’ Memorial Service 

Inside this issue: 

2 

2 

4 

4 

5 

5 

The Labor Community’s Source for Department of Labor News 

The Labor Advocate The Labor Advocate

DOL Assists HI, IN Airline Workers with $8.7 Million in grants 

Secretary Chao Highlights 

Employee Benefits Successes 

6 

Economic News Update 

• June unemployment remained unchanged at 5.5%, 

remaining below the averages for the past three decades. 

• Average hourly earnings 

increased by $0.06 in June. 

• Productivity increased by 

0.7% in the first quarter of 

2008. 

• The bipartisan economic 

growth package signed by 

President Bush is sending 

over $152 billion back to 

American families and is 

expected to create more 

than 500,000 jobs by the 

 end of 2008. 

U.S. Department of Labor working to aid recovery from flooding and 

tornadoes in the Midwest 

Volume 4, Issue 1 Volume 4, Issue 1 Volume 4, Issue 1

Spring/Summer Spring/Summer Spring/Summer 

2008
“The Labor Community’s Source for Department of Labor News” 

In January, Secretary of Labor 

Elaine L. Chao announced a grant 

of $1,803,148, with an initial release of $598,241, to Wisconsin 

to assist approximately 400 

workers affected by the closure 

of both the Electrical and Safety 

and Powertrain divisions of Delphi Corp. in Oak Creek. 

"This $1.8 million grant will enable Wisconsin workers who have 

been affected by the closures to 

get the help they need to find 

new jobs," said U.S. Secretary of 

Labor Elaine L. Chao. 

On June 22, 2007, Delphi Corp. 

announced the closure of its Electrical and Safety division. On Sept. 

9, 2007, Delphi announced it would 

also close its Powertrain division. 

As of November 27, 2007, affected 

workers from both of these divisions had been certified as eligible 

for the Trade Adjustment Assistance (TAA) program. A variety of 

unions represent workers at the 

Oak Creek plant, including the 

UAW, IUE-CWA, Steelworkers, 

IBEW, IAMAW and the Operating 

Engineers. 

The grant, awarded to the Wisconsin Department of Workforce Development, will provide reemployment services not covered 

under the TAA program, including 

assessment, career counseling and 

case management. Services available to these workers under TAA 

may include training, job search 

allowances, relocation allowances 

and a health coverage tax credit, 

among others. 

all pension plan participants will 

receive all the funds to which they 

are entitled," said U.S. Secretary 

of Labor Elaine L. Chao. 

Hewitt, which served as the administrator for the settlement 

fund, caused the fund to have insufficient cash to pay Enron workers, retirees and beneficiaries all 

the amounts due them. The fund 

holds recoveries obtained by the 

Department and class action 

plaintiffs in related lawsuits regarding Enron's pension plans. 

Hewitt Associates LLC and the 

Enron Creditors Recovery Corp. 

have agreed to restore $11.2 

million to the court-supervised 

settlement fund for Enron participants, the U.S. Department 

of Labor announced in March. 

The settlement resolves a contempt motion filed by the Secretary of Labor against Hewitt for 

having misallocated courtsupervised settlement funds 

owed to Enron employees. 

"This settlement will ensure that 

The settlement will restore the 

funds necessary to permit full 

payment to the plan participants 

in accordance with the allocation 

formula originally approved by the 

court. Without the settlement, the 

fund would have had less than it 

needed to pay all of the participants their promised recoveries. 

Enron and Hewitt have agreed to 

provide the funds necessary to 

make up the shortfall in the 

amount needed to make whole 

the underpaid participants. 

Hewitt and Enron to restore $11.2 million to Enron litigation settlement fund 

Act of 2002. 

"This $1.25 million grant will help 

provide health care coverage for 

these workers as they transition 

to new careers," said U.S. Secretary of Labor Elaine L. Chao. 

The TAA Reform Act of 2002 established mechanisms by which 

trade-certified individuals and 

members of other eligible groups 

can receive assistance to partially 

cover the costs of qualified health 

insurance coverage. The primary 

mechanism is a federal tax credit 

administered by the Internal 

Revenue Service (IRS). Payments 

made through this grant will cover 

up to 65 percent of the cost of 

health insurance premiums during 

the one to three months required 

for the IRS to enroll, process and 

begin providing payments for eligible individuals. 

U.S. Department of Labor announces $1.25 million to North Carolina to help trade-affected workers 

pay for health insurance 

The Department announced a 

$1,250,000 National Emergency 

Grant (NEG) to the state of 

North Carolina in January to 

help provide assistance in paying health insurance premiums 

to approximately 1,800 dislocated workers who are eligible 

for the Health Coverage Tax 

Credit. The assistance is available through the Trade Adjustment Assistance (TAA) Reform 

U.S. Department of Labor announces more than $1.8 million to assist dislocated Wisconsin workers 

Page 2 
“The Labor Community’s Source for Department of Labor News” 

many other helpful resources for 

workers and employers." 

President Bush and the Federal 

Emergency Management Agency 

(FEMA) have declared multiple 

counties across the Midwest as 

disaster areas and are eligible 

for FEMA’s Public Assistance 

Program. 

To date, the Department has 

awarded a $17,127,000 grant to 

create approximately 600 temporary jobs for eligible dislocated workers in Iowa, a 

$2,400,000 grant to the state of 

Indiana to fund the creation of 

approximately 200 temporary 

jobs and a $3,500,000 grant to 

the state of Illinois to create approximately 200 temporary 

jobs. These jobs are funded 

through the NEG program. 

Impacted states can apply for 

NEG funds that can be used to 

temporarily employ dislocated 

workers on projects for the 

cleanup, demolition, renovation 

and reconstruction of public facilities and land. These funds can also 

be used to employ workers on projects that provide food, clothing, 

shelter and other humanitarian assistance for disaster victims. 

The Department has set up a website, located at http://www.dol.gov/

opa/flood-recovery.htm and is also 

providing assistance through DOL’s 

National Contact Center at 1-866-

4-USA-DOL (1-866-487-2365). 

ney General Michael Mukasey, 

Secretary of Homeland Security 

Michael Chertoff, and Secretary 

of the Interior Dirk Kempthorne, 

along with a number of members of Congress and country 

recording artist Jo Dee Messina. 

The event, held at the west 

front of the U.S. Capitol, was 

attended by more than 25,000 

law enforcement officers as well 

as the surviving family and 

Police Memorial (Continued from pg. 1)

Midwest Flooding (Continued from pg. 1)

Page 3 

Secretary Chao sits with Chief David A. Hiller, Chief of Grosse Pointe, MI Park Department of Public Safety and National Vice President of the Fraternal Order of Police, at the 

National Police Officers’ Memorial Service at the Capitol. 

(DOL Photo/Douglas Sonders) 

friends of the 192 officers who 

gave their lives in the line of 

duty in 2007. It was the 27th

annual memorial service sponsored by the Fraternal Order of 

Police, and the seventh service 

Secretary Chao has attended 

since taking the helm of the Department of Labor in 2001. The Fraternal Order of Police is the largest union representing police officers in 

the United States, with over 

350,000 members. 

See more photos from the event on pg. 7 
“The Labor Community’s Source for Department of Labor News” Page 4 

McLane Co. Inc., headquartered 

in Temple, TX, has agreed to 

pay $1,559,316 in overtime 

back wages to 570 current and 

former retail merchandising 

specialists nationwide after an 

investigation by the Employment Standard Administration’s 

Wage and Hour Division found 

that the company misclassified 

employees and did not pay 

overtime wages required by the 

Fair Labor Standards Act 

McLane Co. in Temple, Texas, agrees to pay more than $1.5 million in back wages to 570 employees 

following a U.S. Department of Labor investigation 

(FLSA). 

"Workers are entitled to the 

wages they've earned," said U.S. 

Secretary of Labor Elaine L. Chao. 

"We have secured more than $1.5 

million in back wages for these 

workers, and the employer is on 

notice to properly compensate its 

employees in the future." 

McLane Co., a wholesale distributor of food and grocery products, 

erroneously regarded retail merchandising specialists as outside 

sales employees exempt from 

FLSA coverage. Additionally, the 

company did not keep required 

records of hours worked. This investigation was conducted by the 

Dallas District Office following an 

initial investigation of the company's Nicholasville, KY, location 

by the division's district office in 

Louisville, KY. The employer cooperated with the investigation and 

agreed to pay back wages in full. 

they have earned," said Secretary 

of Labor Elaine L. Chao. "This legal action is being taken to recover more than $1 million in 

back wages for these Colorado 

workers." 

The Wage and Hour Division investigation found the company in 

violation of FLSA for failing to pay 

employees overtime for hours 

worked in excess of 40 hours per 

week during pay periods ending 

from June 25, 2005, through June 

3, 2006. The company paid truck 

The U.S. Department of Labor 

has filed a lawsuit to recover 

$1,094,486 in back wages for 

302 Denver-area employees of 

Aggregate Industries, WRE Inc., 

a subsidiary of Bardon US Corp. 

The suit, filed in the U.S. District 

Court in Denver, resulted from 

an investigation by the Wage 

and Hour Division that found 

violations of the Fair Labor 

Standards Act (FLSA). 

"Among this Department's highest priorities is making sure that 

workers are paid all the wages 

drivers on a per load basis without regard to the number of hours 

worked. 

The company agreed to come into 

compliance for the future but has 

refused to pay the computed 

amount of back wages due these 

workers. Aggregate Industries, 

located in Golden, CO, produces 

high quality aggregated-based 

construction materials. Bardon's 

corporate offices are located in 

Baltimore, MD. 

U.S. Department of Labor files suit against Aggregate Industries to recover more than $1 million in 

back wages due 302 Denver, Colorado-area workers 

in Pacific, and Yushin USA Ltd. in 

Kirksville. 

"This $1.7 million grant will provide these Missourians with employment services to help in starting a new career in a growing industry," said U.S. Secretary of 

The U.S. Department of Labor 

announced in April a $1,730,321 

grant to the state of Missouri to 

provide employment and training assistance to workers dislocated as a result of layoffs occurring at Chrysler LLC in Fenton, Integram St. Louis Seating 

Labor Elaine L. Chao. 

All workers impacted by these 

layoffs have been certified for 

TAA. The grant, awarded to the 

Missouri Division of Workforce 

 

(See MISSOURI WORKERS, pg. 6) 

U.S. Department of Labor announces grant of more than $1.7 million to assist Missouri workers 

affected by automotive industry layoffs 
“The Labor Community’s Source for Department of Labor News” Page 5 

The U.S. Department of Labor 

filed a lawsuit in April against 

Chicago-based AA Capital Partners Inc. and its executives for 

improperly causing more than 

$25 million in losses for five 

Michigan pension funds by misusing plan assets to benefit 

themselves and by charging the 

plans excessive investment 

management fees. The Department's suit seeks to restore all 

losses incurred by the plans as a 

result of the defendants' improper actions. 

"This case involves gross abuse 

of the trust that workers and 

their families placed in the management of these pension 

funds," said Secretary of Labor 

Elaine L. Chao. "We are seeking 

full restitution to the pension 

plans, including the illegal profits that the defendants realized 

at the expense of workers and 

their families." 

The Department's suit alleges 

that AA Capital Partners, its coowner and president John Orecchio, chief financial officer Mary 

Elizabeth Stevens, and affiliate 

U.S. Department of Labor Sues Chicago Investment Firm and Executives to Recover More Than $25 

Million for Five Michigan Union Pension Plans 

AA Capital Liquidity Management 

LLC violated the Employee Retirement Income Security Act 

(ERISA) by imprudently misusing 

plan assets and charging the 

plans excessive fees on investments. 

The pension plans covered more 

than 60,000 participants of the 

Carpenters Pension Trust Fund of 

Detroit and Vicinity, Operating 

Engineers Local Number 324 Pension Fund, Michigan Regional 

Council of Carpenters Annuity 

Fund, Millwrights' Local Number 

1102 Supplemental Pension Fund, 

and Michigan Teamsters Joint 

Council #43 Pension Fund. As of 

April 30, 2006, the pension plans 

had total assets of approximately 

$3.1 billion, the latest data available. 

At various times from 2002 to 

2006, the defendants are alleged 

to have improperly used $25.9 

million of the plans' assets to pay 

for, among other things, the operating expenses of the firm, renovations to a horse farm and a 

strip club managed by Orecchio. 

In addition, they allegedly caused 

the plans to pay unauthorized 

fees to AA Capital Partners. The 

suit seeks a court order to require 

that the defendants restore to the 

plans all losses, return illegal 

profits and correct transactions 

prohibited by law. The suit also 

asks that the defendants be permanently barred from serving as 

fiduciaries to any plan governed 

by ERISA in the future. 

AA Capital Partners is a registered 

investment advisory firm to employee benefit plans, including 

ERISA-covered benefit plans. The 

firm created AA Capital Liquidity 

Management as the general partner for a fund that invested in real 

estate loans and entities that developed real property. As a result 

of a Sept. 13, 2006, lawsuit filed 

by the Securities and Exchange 

Commission, AA Capital Partners 

was placed in the hands of a 

court-appointed receiver. 

The Chicago Regional Office of the 

Department's Employee Benefits 

Security Administration investigated this case. The suit was filed 

in federal district court in Chicago. 

apolis, IN. 

"These grants will provide immediate assistance to the workers 

affected by these layoffs," said 

Secretary of Labor Elaine L. Chao. 

"Hawaii and Indiana are working 

hard to ensure these workers 

have access to important reemployment services that will 

The U.S. Department of Labor 

announced in June a $5,220,500 

grant to Hawaii to assist approximately 710 workers affected by the discontinuation of 

passenger airline services at 

ATA Airlines and Aloha Airlines, 

both located in Honolulu, and 

$3.52 million to assist approximately 350 workers in Indianhelp them get back to work as 

quickly as possible." 

On March 31, Aloha Airlines issued a Worker Adjustment and 

Retraining Notification (WARN) 

announcing that it was immediately ending passenger services 

 

 (See HAWAII WORKERS, pg. 6) 

U.S. Department of Labor announces $8.7 million for dislocated airline workers in Hawaii, Indiana 
“The Labor Community’s Source for Department of Labor News” Page 6 

In a May speech at the 2008 

Employee Benefits Conference 

in Washington, U.S. Secretary of 

Labor Elaine L. Chao told attendees that the Bush Administration has accomplished its goals 

to strengthen the ability of employers to deliver retirement 

and health benefit security and 

keep its commitment to workers 

and their families. 

"This administration succeeded 

in enacting the Pension Protection Act — the most sweeping 

reforms of retirement plan rules 

in over three decades," said 

Secretary Chao. "Our initiatives 

will boost participation in retirement funds and empower workers, retirees and their families 

with more useful information on 

U.S. Secretary of Labor Elaine L. Chao highlights accomplishments in reforming employee benefits 

system at ‘DOL Speaks’ conference 

the management of their funds 

and investment strategies. And 

our record-setting enforcement 

and outreach efforts have yielded 

billions of dollars in results for 

workers and retirees." 

Secretary Chao discussed at 

length the administration's ongoing efforts to fully implement the 

Pension Protection Act of 2006 

(PPA). Since enactment of PPA, 

the Department has issued 22 

regulatory actions that strengthen 

the nation's private pension system so America's workers and retirees can look forward to a secure retirement. 

In her remarks before the conference, co-sponsored by the U.S. 

Department of Labor and the 

American Society of Pension Professionals and Actuaries, Secretary Chao thanked the group for 

its partnership in magnifying the 

scope and impact of compliance 

assistance efforts that help employers comply with existing employee benefit plan laws. She 

highlighted the Department's success since 2001, under its Employee Benefits Security Administration enforcement program, in 

recovering nearly $11 billion and 

obtaining more than 800 criminal 

indictments. In addition, the 

agency has directly reached more 

than seven million people through 

education and outreach efforts, 

responded to approximately 1.3 

million inquiries and recovered 

more than $524 million for individuals through informal complaint resolution. 

search allowances, relocation allowances and a health coverage 

tax credit, among others. 

On Nov. 2, 2007, Chrysler LLC 

announced that it would be eliminating the second shift at its Fenton, MO, plant, affecting approxidevelopment, will provide workers with services not covered 

under the TAA program, which 

may include assessment, career 

counseling and case management. Services and benefits 

available to these workers under 

TAA may include training, job 

mately 1,078 workers. As a result, Chrysler suppliers Integram 

St. Louis Seating and Yushin USA 

Ltd. also announced that they 

would be laying off 326 and 100 

workers, respectively. 

Missouri Workers (Continued from pg. 4)

and laying off workers throughout the state. On April 4, ATA 

Airlines issued a WARN announcing it had discontinued 

passenger airline services and 

begun laying off workers. 

The grants, awarded to the Hawaii Department of Labor and 

Industrial Relations and the 

Indiana Department of 

Hawaii Workers (Continued from pg. 5)

Workforce Development, will provide affected workers with a 

range of re-employment services, 

including skills assessment, individual career counseling, and career and occupational skills training. 
Visit us on the Web! 

http://www.dol.gov/_sec/

laboradvocate

Department of Labor: 

http://www.dol.gov

U.S. Department of Labor 

Labor Liaison 

Suite S-2018 

200 Constitution Ave, N.W. 

Washington, D.C. 20210 

“The Labor Community’s Source for Department of Labor News” Page 7 

Secretary of Labor Elaine L. Chao pays tribute to our Nation’s fallen Peace Officers 

Clockwise from Left: Secretary Chao delivers the keynote speech at the National 

Peace Officers’ Memorial Service. 

Secretary Chao pins a flower on a memorial wreath with Grand Lodge Fraternal 

Order of Police Auxiliary President Beverly 

Crump at the Capitol. 

Secretary Chao greets Leslie Freeman of 

Huntsville, AL whose husband, Police Officer William Eric Freeman, was killed in 

the line of duty. 

Secretary Chao greets Officer Corey Holcomb of Piedmont, AL and his mother, 

Sharon Holcomb, whose father and husband, Lt. Dexter Holcomb, died in the line 

of duty. 

(DOL Photos/Douglas Sonders)