Employers fire mothers-to-be

I was reading The Toronto Star this morning while having coffee, and I came across this article, I thought i'd share it with you

Recession used as excuse for surge in pink slips

Human rights advocates are seeing an alarming surge in cases of pregnant women being fired by "Neanderthal" employers across Ontario, who claim hard times are the cause.

What's especially stunning, they say, is how brazen some bosses are, almost 50 years after Ontario enacted the Human Rights Code to prevent such discrimination.

"We actually have an email from one employer saying, `Sorry, but with your little bundle, I don't think we'll be able to (re)hire you. We want a permanent solution,'" says Consuelo Rubio, manager of client services for Ontario's Human Rights Legal Support Centre, an independent agency funded by the province to provide free legal services to people experiencing discrimination.

The firings are in all sectors: "It's happening to women in senior positions and women in minimum-wage jobs," says Katherine Laird, executive director of the centre, who says she hasn't seen this level of discrimination through two previous recessions and 30 years in the human rights field.

"It's outrageous and illegal," Laird says.

The spike in calls from pregnant women who are frightened for their jobs, can't nail down return-to-work dates or have been told there will be no job waiting for them at the end of their maternity leave, started last fall. But they hit "nightmare" levels in January, says Rubio, and are now averaging 10 to 15 calls a week – accounting for about 10 per cent of all calls from workers inquiring about their rights.

"I thought I was the only person this was happening to," says Brandi Mather, 21, a housekeeper at an Orillia hotel who was laid off Jan. 19, ostensibly because of a lack of work. She later learned her boss had overhead co-workers talking about her pregnancy. Mather had hoped to return to work this month, but found out a replacement worker had been hired in the meantime.

Her boss was quite upfront, saying it was because of the pregnancy. But the boss backtracked when she realized Mather had checked out her legal rights and then said it was because her work was shoddy.

Most firings seem to occur soon after women announce they are pregnant, says Rubio. That puts women's maternity leave benefits at risk, since to qualify for full benefits they must work 600 hours within the 52 weeks before filing.

"I need 435 more hours," says Mather, who also has a 2-year-old daughter and had been working part-time while studying to be a pharmacy assistant. Her pregnancy is starting to show, which has made it impossible to get another job.

"I don't want to go on welfare, but if that's what I have to do, that's what I have to do. I've tried really hard not to do that because I know there are other people who need it."

Until Dec. 4, dental assistant Ann Dunn split her work week between two dentists, one in Courtice and one in Bowmanville. At 10 a.m. she told the Bowmanville dentist she was pregnant. A few hours later she was given a $300 gift certificate to The Bay and told her one-day-a-week job was over.

To her gratitude, the other dentist was so shocked by the move he took her on staff early enough before her son, Michael, was born April 1 to allow her to qualify for maternity benefits. She's filed a claim with the Ontario Human Rights Tribunal and is seeking $10,000 in damages.

"If he had said to me, `Things are getting slow in the office and we don't have a lot of hours. Just finish off your three months,' I would have said, `That's fine.' But I didn't have that option. The only option I had was the gift card."

The dentist hired a replacement.

The centre is also hearing from pregnant women who work on commission but simply aren't being given any work or sales calls to make.

"Employers are crying about the recession and saying, `This is so terrible for us,'" says Rubio. "Well, what about all these workers who are going through the financial crisis too? The recession is not only affecting employers, it's affecting mothers with children, it's affecting disabled people – even more so because a lot of these people can be even more vulnerable financially."

The centre is also fielding more calls from injured workers and disabled people – who have always accounted for the vast majority of inquiries – and are seeing troubling signs on that front as well, especially among people who work for hard-hit auto-parts manufacturers, some of them unionized shops.

Human-rights advocates are investigating a Peterborough firm that produces car bumpers and other plastic parts. It laid off 18 workers back in January – every one of whom had at some point claimed disability benefits or were on modified work assignments to allow them to do less strenuous work to cope with their injury.

Meanwhile, 18 "healthy" workers were called back from layoffs.

"The Human Rights Code is supposed to be about recognizing the worth and dignity of every person – and sometimes the real test of an employer's commitment comes when economic times are tough," says Kate Sellar, a lawyer with the centre.

"Bad economic times aren't a licence for employers to discriminate against pregnant women and workers with disabilities."

Strapped for cash? Print your own

From the 04/17/09 edition of USA TODAY

A small but growing number of cash-strapped communities are printing their own money.

Borrowing from a Depression-era idea, they are aiming to help consumers make ends meet and support struggling local businesses.

The systems generally work like this: Businesses and individuals form a network to print currency. Shoppers buy it at a discount — say, 95 cents for $1 value — and spend the full value at stores that accept the currency.

Workers with dwindling wages are paying for groceries, yoga classes and fuel with Detroit Cheers, Ithaca Hours in New York, Plenty in North Carolina or BerkShares in Massachusetts.

Ed Collom, a University of Southern Maine sociologist who has studied local currencies, says they encourage people to buy locally. Merchants, hurting because customers have cut back on spending, benefit as consumers spend the local cash.

“We wanted to make new options available,” says Jackie Smith of South Bend, Ind., who is working to launch a local currency. “It reinforces the message that having more control of the economy in local hands can help you cushion yourself from the blows of the marketplace.”

By law, local money may not resemble federal bills or be promoted as legal tender of the United States, says Claudia Dickens of the Bureau of Engraving and Printing.

Ponzi-Proof Your Portfolio

Avoid falling victim to a ponzi scheme, with these 5 easy-to-understand tips to avoid falling victim to the next ponzi scam artist.



- Check out the accountant. Call the firm, demand a client list, ask who audits the money-management firm you're considering. A fraud always involves the bean counter.

- Ask the money manager to explain in laymans terms how he (or she) invests. Dont be shy about asking questions. If he (or she) cant explain it, it may be because he (or she) doesn't have a decent (or legal) strategy.

- Do not assume that someone else has done the due diligence. This is huge. Just because there are important or smart people involved, it doesn't mean they have checked the company out.

- Check out FINRA BrokerCheck, a free online tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers.

- Never, ever, put all your eggs in one basket. Even the SEC, apparently, can be fooled.

What is a ponzi scheme? The Ponzi Scheme Explained

I was on Youtube again, and I found this great AP video that explains what a ponzi scheme is, in very easy to understand terms.

Show over for Blockbuster Video?

Movie rental company Blockbuster Inc. said Monday the risk that it may not complete financing deals raises "substantial doubt" about its ability to continue as a going concern.

Dallas-based Blockbuster, which has struggled amid the rising popularity of DVD-by-mail services like Netflix, as well as online movie sharing and viewing, disclosed the warning in a filing with the Securities and Exchange Commission. The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.

A going-concern qualification refers to an auditor's assessment of a company's ability to continue to operate for the foreseeable future.

Last week, Blockbuster said its revolving and term loan agreement was amended, giving it a $250 million revolving loan refinancing that matures on Sept. 30, 2010. Lenders including JPMorgan also agreed to waive any default that could result if auditors attached a "going concern" classification.

But on Monday, the company said its lenders' obligation to fund the $250 million credit facility is subject to meeting certain conditions, and there can be no assurances that these conditions will be met.

Even if the loan is funded, the company said it "may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern."

Blockbuster said it believes that it will be in a position to close the amended credit facility by around May 11, though "there can be no assurance regarding these matters."

Blockbuster Inc. Shares fell 3 cents to 85 cents in after-hours trading, having closed earlier at 88 cents.

On 'Sesame Street', "L" is for "Layoffs"

The crisis on Wall Street is plaguing Sesame Street.

Sesame Workshop, the nonprofit producer of “Sesame Street” and other kids’ programs, is cutting about one-fifth of its work force because of the economic downturn.

The New York-based company said Wednesday that it’s eliminating 67 of 355 staff positions.

Declaring it is “not immune to the unprecedented challenges of today’s economic environment,” the company pronounced a need “to operate with fewer resources in order to achieve our strategic priorities.”

The statement reiterated the organization’s mission “of helping children reach their highest potential here and around the globe.”

Best known as the home of such Muppet characters as Big Bird and Elmo, Sesame Workshop was founded in 1968 as Children’s Television Workshop, then unveiled the groundbreaking “Sesame Street” as a literacy-building initiative a year later. That show, which remains a worldwide hit, was the first step toward a media empire that encompasses television, books, toys and online programing.

Among the company’s early TV efforts is “The Electric Company,” which aired during the 1970s and was revived with new episodes on PBS in January.

Sesame Workshop gets revenue from product licensing and the sale of its programs to PBS and syndication. The company is also funded by government agencies, foundations and corporations.
Total revenue were $145 million in 2008, with operating expenses totaling $141 million, according to the company’s Web site.

Olympic debt, $40,000 flying banana win government waste awards

Vancouver's Olympic Village was "honoured" Wednesday at a tongue-in-cheek awards ceremony for wasting tax dollars, with other prizes going to the auto industry, an employee spa day in Manitoba and federal arts spending on a giant inflatable banana.

The Canadian Taxpayers Federation (CTF) showed off gold-coloured pig statues the lobby group would like to go to winners who were guilty of government waste last year as it announced four prizes for its 11th annual Teddies Waste Awards.

Taking the municipal Teddy, with the most expensive winning example of waste, was Vancouver City Council for its handling of the Olympic Village project.

"The municipal Teddy goes to the City of Vancouver for waste of Olympic proportions," said Kevin Gaudet, CTF national director.

"The city allowed a firm to build the Olympic athletes' village on city land. The city was to earn $193 million on the deal, but the firm couldn't get the job done and the city now is on the hook for $875 million in debt," he said.

The federal Teddy went to the Canada Council for the Arts for "Best Achievement in Special Effects with Taxpayer Dollars." The federally funded agency spent $15,000 last year to help bring a Belgian art exhibit to Quebec that produces a poop-like substance when fed with food.

The council also spent $40,000 on a project that seeks to fly a giant inflatable banana over Texas.

The provincial award went to the Manitoba Child and Family Services agency, which ran a spa day for staff that included pedicures, makeup lessons and tarot card readings.

The nominees included:

- Federal - Lori Ridgeway, Fisheries and Oceans civil servant for $400,000 in travel expenses.

- Federal - CBC executives for first-class travel expenses.

- Federal - Parks Canada for a $1.8-million solar-powered washroom facility.

- Saskatchewan government - for switching college space into office space then back to college space.

- New Brunswick government - for its government-owned and subsidized lodge on the Restigouche River.

- Alberta government - for the pay hike given to MLAs.

- City of Edmonton - for producing carbon footprint calculators despite the plethora of free ones online.

- City of Winnipeg - for its failing boat tour service.

- City of Toronto - for its $935,000 rainwater toilet.

- City of Oshawa - for buying a dollhouse village for $234,000 then trying and failing to sell it.

The Big Three auto companies were winners of a lifetime achievement award for their continuing reliance on government grants and loans.

The federation's annual spoof awards are named after Ted Weatherill, a former senior public servant who was fired for lavish expense spending a decade ago.

Hi-tech immigrants heading home to China, India

Tech-savvy, well-educated Indian and Chinese immigrants are packing it up in greater numbers in the United States and heading back home, This, according to Duke professor and Harvard researcher Vivek Wadhwa.

He conducted a survey on why recent returnees elected to go back to India and China for the Kauffman Foundation.

"The majority of people like it better back home," Wadhwa said. "The U.S. isn't everything anymore ... This is great for India and China, but what we've done is export economic recovery."

He estimates that while 50,000 Indian and 50,000 Chinese immigrants returned home in the past 20 years, there will be 100,00 Indians and 100,000 Chinese immigrants leaving the U.S. in the next five years.

The factors driving return were not primarily visa issues, the survey found, but feelings that career opportunities were better at home, a desire to be close to friends and family, and better quality of life.

The survey randomly polled 1,203 Indian and Chinese employees in their home countries who had worked or gone to school in the U.S. and who were members of the social networking site LinkedIn.com.

Saskatchewan a jobs 'hot spot' in Canada

Normally, "hot spot" isn't the first phrase that comes to mind when talking about Saskatchewan, or even Canada for that matter.

But with most of Canada suffering from devastating job losses, this cold province is becoming exactly that.

It's an asterisk to the entire country when it comes to the economic climate, and Premier Brad Wall is shouting it as loud as he can.

"It's a great time to come to Saskatchewan," says Wall, who even called the Toronto Star newspaper to tout his province's economic success and let Ontarians know there were jobs for the taking.

"For those who are losing their jobs, we need them to know we have thousands of jobs open right now in both the private and public sector," Wall said. "We have a powerful story to tell, a story of success and that's something we want to share with those who are struggling."

Wall's province is one of the exceptions to the unemployment increases battering provinces across Canada. Saskatchewan's unemployment rate fell to 4.1 percent in January from 4.2 percent in December, making it the only province recording a decline. In Ontario and the city of Toronto, unemployment rates rose to 7.2 percent and 8.5 percent respectively. To the west, British Columbia shed 68,000 full-time jobs in January.

More Saskatchewan jobs should be on the way. To stave off any possible recession, Wall announced a $500 million infrastructure "booster shot" to help keep the economy strong. Learn more about different towns in Saskatchewan

"All across the country, industries are getting quite ill," Wall said. "We aren't immune to it. We see some impacts in terms of layoffs and new vehicle purchases slowing off, and so we want to be proactive in staying ahead of the curve."

On Tuesday, the Conference Board of Canada released a report that said Saskatchewan will likely continue to lead the nation in economic growth in 2009 because of the infrastructure investment and tax reductions.

The province has also been reaping the benefits of an influx from nearby Alberta. When the government in Alberta decided to raise the oil royalty rates, oil exploration and expedition companies decided to move their operations to Saskatchewan in hopes of making more money.

With the province's growing opportunities, David Montgomery, president of Calgary's Qwest Haven Relocation Services, said he is moving more people to Saskatchewan each day.

"Alberta has always been the gravy train of oil," said Montgomery, who is also a former resident of Regina, the capitol and second-largest city in Saskatchewan. "But with the new royalties, oil companies are saying 'Why stay here and make less when the opportunities right next door are even better?' Many other companies may start to follow suit."

Montgomery said people looking to move have said that cheaper land and insurance prices are among the other reasons they are headed to Saskatchewan.

"There, government insurance is cheaper than anywhere else in the country and it comes with your license plates," he said. "With the amount of jobs, cheaper opportunities and great way of life, the government there has made it very attractive to move there."

That means more business for Wall's province and more jobs coming to the area.

Not that there's a shortage of jobs. On Tuesday night there were nearly 6,000 private- and public-sector jobs on the Web site Saskjobs.com.

A constant stream of revenue from oil production and exports also buoys the economy in the province.

Saskatchewan is the largest producer of oil in Canada and exports more oil to the United States than Kuwait. It is the leader in uranium production and produces a third of the world's potash.

The province continues to keep ahead of the curve, Wall said, finding ways to diversify its resources and embark on ambitious green projects and new oil projects. The province is working with Montana on a $212 million climate change initiative that would create the first major greenhouse gas storage project in North America. The carbon dioxide from coal-fueled power plants would be stored in the ground in Montana and later be withdrawn for use in oil production.

Wall also said what may be the largest discovery of sweet, light crude oil in the southeast part of the province means it could have even more oil to work with. The Bakken Formation could potentially have 413 billion barrels of oil, according to the U.S. Geological Survey. That would be another huge untapped revenue gold mine.

Despite the growth of nearly all sectors across the board, Wall cautioned that it is possible his province may see economic stress, just later in the game than other places.

"We need to be circumspect and prudent about promoting our province," he said. "We are not immune; we do see the impacts. It isn't some sort of panacea or answer to economic questions that don't exist elsewhere. We are a bit of an asterisk that says there is some stress, but it's relatively calm here."


Wall encouraged people not to count out a move to the province based on stereotypes that it is "only winter here," and "all of the land is just rolling hills."

"'It's a beautiful, big place where life is great and right now there's also opportunity," he said. "I'm very, very biased, but I can't imagine a place I'd rather be, especially with what's going on economically around the world."

For sale: One life in China

26-yr old Beijing resident Chen Xiao had pretty much given up making her own decisions and so decided to throw open her life to the whims of China's hundreds of millions of Internet users, known in China as netizens.

"It's your right to arrange Chen Xiao's life, and it's my obligation to serve you," read her online shop.

Since December, Chen has been allowing others to decide what she will do each day, because, for the most part, last year was awful, she said. Her hometown was hit by blizzards, her country rocked by a devastating earthquake, friends divorced and her clothing shop went bankrupt.

"Every time I had a plan for what I wanted my life to be like, nothing would come of it. It was very disappointing. I figured if other people came up with things for me to do, I might stumble upon something new and better," she says.

What she stumbled upon was not only a new life but a new way to make a living. She charges about $3 an hour, and she's been asked to do almost everything from delivering pet food to caring for stray cats to taking a hot lunch to a homeless man.

What surprised her the most was not so much the varied requests but being able to find happiness in the process.

"If somebody asks you to do something, something simple, and you do it, it can make you very happy. You can change from a gloomy person to a very bright one. It can help give you a new sense of self-esteem," she said.

So far, the most meaningful assignment she was given was attending a child's birth -- the father was a complete stranger who just wanted someone to take pictures and share the moment.

There are limits to what she will agree to do. She will not do anything illegal, immoral or violent, but she said that has not stopped some from asking.

"When I first started there was this man who would send me these really disgusting text messages. His words were over the top... nauseating," she said.

There was also a man who wanted to meet her for a few private hours at a ski chalet. When she turned up with a friend to take photographs, he backed out and then demanded a refund, but Chen refused.

In many ways she is just a glorified errand girl, but with a unique China twist. Chen is another example here of how in China the Internet is crossing over from cyberspace to the real world.

Chen does not know how much longer she will keep taking cyberrequests. For now it is a good way to survive the financial crisis when many others are losing their jobs and businesses are going broke.

"When people stop needing me, I'll go back to my original life. But I don't know what will come," she said.

I don't know about you, but I think this story sounds like the perfect premise for an old-school TV series about a young woman running around solving people's problems -- sort of like Highway to Heaven without the angels. What do you think? Is her plan crazy, or sweet and kind of genius?

Canon tells workers to have more sex

Workers urged: Go home and multiply

Even before one reaches the front door of Canon's headquarters in Tokyo, one can sense the virtual stampede of employees pouring out of the building exactly at 5:30 p.m.

In a country where 12-hour workdays are common, the electronics giant has taken to letting its employees leave early twice a week for a rather unusual reason: to encourage them to have more babies.

"Canon has a very strong birth planning program," says the company's spokesman Hiroshi Yoshinaga. "Sending workers home early to be with their families is a part of it."

Japan in the midst of an unprecedented recession, so corporations are being asked to work toward fixing another major problem: the country's low birthrate.

At 1.34, the birthrate is well below the 2.0 needed to maintain Japan's population, according to the country's Ministry of Health, Labor and Welfare.

Keidanren, Japan's largest business group, with 1,300 major international corporations as members, has issued a plea to its members to let workers go home early to spend time with their families and help Japan with its pressing social problem.

One reason for the low birth rate is the 12-hour workday (unless you have workers going into the supply closet for quickies regularly during the workday..but that's another story) But there are several other factors compounding the problem -- among them, the high cost of living, and social rigidity toward women and parenting.

In addition, Japan's population is aging at a faster pace than any other country in the world.

Analysts say the world's second-largest economy faces its greatest threat from its own social problems, rather than outside forces. The country desperately needs to make some fixes to its current social and work structures, sociologists say.

Canon says its 5:30 p.m. lights-out program is one simple step toward helping address the population problem. It also has an added benefit: Amid the global economic downturn the company can slash overtime across the board twice a week.

"It's great that we can go home early and not feel ashamed," said employee Miwa Iwasaki.

Plus, they can have sex more often. Lets not forget that...

Hertz to eliminate more than 4,000 positions

Rental car company Hertz Global Holdings Inc. is slashing its work force by an additional 4,000 jobs worldwide as it further cuts costs to contend with deteriorating demand and vehicle values.

Hertz expects to save $150 million to $170 million this year and take a related fourth-quarter charge of $20 million to $25 million, the company said Friday.

This is only the latest round of job cuts for the rental car company, which eliminated 1,400 employees this fall. The new reductions will bring staffing to 32 per cent below its levels in August 2006, Hertz said.

According to CapitalIQ, the company currently has about 29,350 workers in total, who operate about 8,100 locations in 144 countries.

The company said this round of cuts, which will take place in its fiscal 2008 fourth quarter and first quarter of 2009, will come in its car and equipment rental operations as well as corporate and support areas. The reductions will occur across all regions.

"Volume, pricing and residual values continued to decline during the most recently completed quarter, and we cannot predict when our markets will improve," said chairman and chief executive Mark P. Frissora in a statement.

He said Hertz is still committed to its global airport and off-airport car rental and equipment rental businesses and will add the "necessary resources" when operating conditions get better.

The rental car industry has a faced a perfect storm of challenges in the past year as airlines have reduced flights, consumers and businesses have cut back on travel spending and vehicle values have dropped.

In November Hertz suspended its financial guidance and said it no longer expects to meet annual earnings targets set in August.

At the time, Hertz projected 2008 adjusted earnings between $340 million and $375 million, or $1.05 to $1.15 per share. It anticipated revenue between $8.7 billion and $8.8 billion.

Analysts surveyed by Thomson Reuters now expect 2008 earnings of 63 cents per share on $8.81 billion in revenue.

Rivals Avis Budget Group Inc. and Dollar Thrifty Automotive also are struggling. Avis has announced a management salary freeze and cut more than 2,200 jobs as part of a drive to reduce annual costs. In October, Dollar Thrifty said it had cut its work force by 6 per cent, or 400 jobs.

Hertz's finances have been considered more stable than its rivals, due to the company's large equipment rental division, which accounts for roughly half its earnings and provides it with more cash flow than pure rental car companies.

Hertz's liquidity was about $4.9 billion as of Dec. 31, 2008. Frissora said Hertz estimates fourth-quarter total net cash flow of about $1.75 billion.

Shares of Hertz fell 12 cents, or 2.2 per cent, to close at $5.27 on Friday. During the past 52 weeks, the stock has fallen from a high of $15.32 last February to bottom at $1.55 in November.

Hertz don' it?

India rocked by Satyam scam

Chair of outsourcing firm with offices in Canada resigns after revealing profits massively inflated

Ramalinga Raju visited Toronto four years ago to discuss how Indian outsourcing firm Satyam Computer Services Ltd. was using Canada as a beachhead to gain access to the huge U.S. market.

But on Tuesday, the Satyam chair was waving a white flag of surrender after he admitted to a massive accounting fraud that caused the company's stock to plummet by nearly 80 per cent while casting a cloud over India's emerging economy.

Raju, who founded India's fourth-largest software services exporter with his brother and brother-in-law two decades ago, shocked investors and the Indian business community by tendering his resignation and revealing that Satyam's profits had been massively inflated over the years.

He claimed that about $1 billion (U.S.), or a staggering 94 per cent, of the cash on Satyam's books was "artificial" or "non-existent" and apologized to the company and its stakeholders.

"What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years," Raju wrote in his statement of resignation. "Every attempt to eliminate the gap failed. It was like riding a tiger, not knowing how to get off without being eaten."

He added that no other board member was aware of the financial irregularities at Satyam, which in Sanskrit means "truth."

It is the biggest corporate scandal in India's memory, dubbed "India's Enron" by analysts, and one that has raised questions about regulatory oversight and the role of Satyam's external auditors, global firm PricewaterhouseCoopers.

As well, the scandal promises to shake up India's once-booming outsourcing sector while possibly threatening foreign investment.

The fallout could even extend to Canada, where the Indian outsourcing industry had carved out a niche in southern Ontario because of proximity to the U.S. heartland.

"They find a presence in Canada useful because, in addition to doing business with Canadian clients, they also want to do business with American clients," said Bernard Courtois, president of the Information Technology Association of Canada, which counts some of Satyam's competitors as members.

Satyam maintains computer networks and has provided a range of back-office outsourcing services for such blue-chip clients as Citigroup Inc., General Electric Co. and General Motors Corp. The U.S. government has also been a client.

In Canada, Satyam boasts a client roster that includes four of the country's big five banks.
With offices in Toronto, Montreal and Calgary, the company also does business in the Canadian health-care sector and donated $1 million earlier this year to Hamilton's Mohawk College to build "the first working prototype of Canada's national blueprint for electronic health records."

In 2004, Satyam opened its first Canadian development centre in Mississauga with about 100 workers as part of an industry-wide effort to ameliorate concerns some U.S. companies had about the optics of sending jobs overseas. Canada was seen as a "nearshore" compromise with its slightly cheaper labour, English-speaking workforce and attractive tax benefits.

"There are some (U.S.) customers who feel a great affinity to the Canadian market," Raju told the Star in Oct. 2004.

Gary Teelucksingh, Satyam's senior vice-president for the Americas, did not return calls to his Mississauga office yesterday.

Satyam's competitors – Infosys Technologies Ltd., Tata Consultancy Services Ltd. and Wipro Ltd. – also operate Canadian development centres in Toronto, Mississauga and Windsor.

Outsourcing and, particularly, offshoring of jobs has been a potent political topic in recent years.

"In the U.S., it was this sort of irrational behaviour caused by a mindset that was concerned about illegal immigration and security concerns post-9/11," said Courtois.

But the outsourcing boogeyman never really reared its head in Canada, in part because the country has benefited from jobs shipped north from the U.S. – a trend Courtois expects will continue to accelerate. "I think with the current economic crisis, more people are going to take a look at it," Courtois said.

Google to cut 100 jobs, close engineering offices

Layoffs precipitated by state of economy: VP

Google Inc. is closing three engineering offices and cutting 100 recruiters from its workforce as the recession dampens hiring at the internet search company.

"Given the state of the economy, we recognized that we needed fewer people focused on hiring," Laszlo Bock, a Google vice-president, wrote in a blog posting late Wednesday announcing the layoffs.

The cuts are a rare move for Google. It made its first ever significant round of layoffs last April, when it cut some 300 jobs from the American operations of DoubleClick, which Google acquired in March 2008.
The newest cuts account for around a quarter of Google's recruiting staff, but are modest relative to the company's full-time workforce, which numbers roughly 20,000.

The moves follow news last week of a government filing from Google showing a significant cutback in temporary employees aimed at trimming costs. The company acknowledged in November that it would be looking to reduce contract workers while retaining full-time employees.

In a separate posting Wednesday, Google said it would close its engineering offices in Austin, Texas, Trondheim, Norway, and Lulea, Sweden, a step the company said would affect 70 workers.

"Our strong desire is to keep as many of these 70 engineering employees at Google as possible," wrote Google's vice-president for engineering and research, Alan Eustace.

"Our long-term goal is not to trim the number of people we have working on engineering projects or reduce our global presence, but create a smaller number of more effective engineering sites, which will ensure that innovation and speed remain at our core," he wrote.

Google's revenue from online ads, the company's core business, is still growing, but the economic downturn has put a crimp in the pace as consumers shop less online and advertising budgets shrink.

The company has given no sign that it will cut back on research and development or acquisitions, but has taken steps recently to reduce discretionary spending, closing its free cafeteria for employees and offering workers more modest holiday gifts.

Nortel files for bankruptcy protection, plans to streamline but stay in business

Telecommunications equipment manufacturer Nortel Networks Corp. filed for bankruptcy protection from creditors yesterday, vowing to stay alive as a smaller company as it sells non-core businesses and restructures to deal with a plunge in business caused by the North American recession.

The move by the former kingpin of Canada's technology sector, Means that Nortel will shed more jobs from its global workforce of 30,000 employees and likely pin its future hopes on wireless technology, the fastest growing part of the telecom sector.

The bankruptcy filing will affect the company's debts and other operations, including sponsorships, but Nortel says it remains committed to sponsoring the 2010 Winter Olympic Games in Vancouver. The company is also a major sponsor of the 2012 Summer Olympics in London.

Long-suffering Nortel has been trying to restructure for more than three years and becomes the first major North American technology company to be forced into bankruptcy protection by the the global downturn and credit market crunch.
"Nortel must be put on a sound financial footing once and for all," president and CEO Mike Zafirovski said in a news release announcing the bankruptcy filings.

Nortel stock, which had been halted, lost two thirds of its value, dropping 25.5 cents to 13 cents on the Toronto Stock Exchange, in massive trading of more than 58 million shares..

North America's biggest maker of telecom gear has faced a variety of troubles since the telecom bubble burst eight years ago - including accounting problems that devastated its stock and led to criminal charges against some former executives.
Most recently, the slumping economy squeezed orders from its phone company customers and ate into its revenues, helping to produce mounting losses.

The company directly and through joint ventures employs about 30,000 people around the world, including 5,800 at Canadian operations in Ottawa and Toronto.

It plans to continue business as usual while it restructures, but job cuts are likely as it tries to lower costs and deal with a huge debt to remain competitive.

Moreover, Nortel will come under pressure to assure customers it can stay alive and be able to supply their future technology and equipment needs.

"These actions are imperative so that Nortel can build on its core strengths and become the highly focused and financially sound leader in the communications industry that its people, technology and customer relationships show it ought to be," Zafirovski said.

In Ottawa, federal Industry Minister Tony Clement said Ottawa is willing to provide some financing through the Export Development Canada Crown corporation to help Nortel restructure and emerge from bankruptcy protection as a viable company.

"EDC has agreed to provide up to $30 million in short-term financing through its existing bonding facility and is open to discussing with Nortel post-filing financing in conjunction with other financial institutions," Clement said.

Ontario Premier Dalton McGuinty said that Nortel had not applied for provincial aid, but a government spokeswoman later corrected his statement, saying the company has in fact been "in discussions" with Economic Development Minister Michael Bryant's office about funding.

"We'll see how things shake out in the end and what it means specifically for jobs in Ontario," McGuinty said in Mississauga, Ont., just west of Toronto.

"I remain hopeful that Nortel will experience ultimately a renaissance of some kind and that will be of benefit to the Ontario economy and to Ontario workers."

Nortel's predecessors have been in business since 1882, and the company, once known as Northern Electric, grew rapidly making telephones for its former Bell Canada parent. It later got heavily into network technology through aggressive - but ill-fated acquisitions - in the United States.

At one point in 2000 the company accounted for one-third of the market value on the entire Toronto Stock Exchange and was Canada's most widely held and touted stock, known to investors around the world.

Wednesday's filings came a day before Nortel was due to repay a $107-million interest debt on its bonds. The transaction would deplete Nortel's North American cash reserves by about 10 per cent.

Creditor protection would give the company more opportunities to explore restructuring options or sell some of its assets, but it would also make the company more vulnerable to a quick sale.

A spokesman for Nortel says that while there are no layoffs currently planned as part of the restructuring announcement, the company might have to cut its workforce in the future.

"Let's be clear, this is a restructuring and we will have to make the tough but necessary decisions to ensure that our costs come down, and we do expect that to impact employees," said Mohammed Nakhooda.

He declined to comment on whether any other companies have expressed interest in acquiring any unit of Nortel.

"We're not in any position to announce anything with respect to strategy," he said.

The latest round of problems at Nortel began in November when the company said it would cut another 1,300 jobs and freeze salaries after a US$3.41 billion quarterly loss and lower sales amid "worsening economic conditions."

Nortel once had more 95,000 employees and a stock market value of C$366 billion on the Toronto Stock Exchange, making it Canada's most valuable company. On Wednesday, the company was worth just over $64 million.

Since the telecom bubble burst, Nortel has grappled with a variety of financial problems, and shrank to less than one-third its peak size, but failed to re-establish itself as a leading player in its industry even though it sits on about $2.4 billion in cash.

Nortel could still persevere and make it through their latest round of trouble, suggests Peter Chapman of Bankruptcy Creditors' Service Inc. in Pennsylvania.

"The Chapter 11 and CCAA proceedings will provide Nortel with the ability to sell useless assets, walk away from every bad business deal, improve its operations and operating margins, and knock its $11-billion debt load down to a reasonable level," he said in an e-mail to The Canadian Press.

Chapman said he expects shareholders will likely be wiped out as owners, and the company will be transferred into the hands of its creditors.

Rick Franklin, an analyst at Edward Jones brokerage, says a series of bad decisions led to Nortel's current predicament.

"They put too much debt on the company when times were good, and times didn't stay good forever," he said.

"Their position in the market changed dramatically and they never recovered from that."

Dominion Bond Rating Services downgraded the ratings of Nortel's stock from CCC to D.

Shares in Nortel are pending a delisting review by the exchange to ensure that the company is meeting the requirements of continued listing.

At their peak, and before consolidation, Nortel shares hit $124.50 on the TSX in July, 2000.

Here are some facts about Nortel Networks Corp. (TSX:NT), which has sought court protection from its creditors:

History: Originally a manufacturing subsidiary of Bell Telephone, which later became Bell Canada and then BCE Inc. (TSX:BCE). Nortel was spun off as an independent, publicly traded company in the late 1990s and became for a time Canada's most valuable company.

Stock: All-time high of $124.50 on July 26, 2000, which would be the equivalent of $1,245 in today's terms following a stock consolidation. Shares were worth just 13 cents each on Wednesday.

Employees: Nortel and joint ventures employ about 30,000 people around the world, including 5,800 at Canadian operations in Ottawa and Toronto.

Quote: "Nortel must be put on a sound financial footing once and for all." - Mike Zafirovski, Nortel's president and chief executive since November 2005.

$3 million gets you 30 seconds

NBC says advertisers are still buying the $3 million spots for the big game, despite a tough economy.

Despite record prices, a grinding recession that doesn't seem like it's going to end anywhere in the near future and the absence of two big advertisers this year, NBC says it's having no problem filling spots for Super Bowl XLIII.

The network has sold about 90% of its 67 spots for the championship game scheduled for Feb. 1 in Tampa, Fla., according to NBC spokesman Brian Walker.

Walker said advertising is "on pace or ahead of past Super Bowls," adding that NBC is "in active negotiations with about a dozen potential advertisers."

FedEx and General Motors will not be buying spots this year.
FedEx blamed the economy, while GM said the timing was just wrong.

NBC is charging, on average, $3 million for a 30-second spot. That's more than the $2.7 million average price for Super Bowl XLII in 2008, when the New York Giants' narrow victory over the New England Patriots was broadcast by Fox of News Corp.

The average price of a 30-second spot crossed the $1 million mark in 1995 and passed $2 million in 2000, according to TN'S Media Intelligence. But industry experts say that it's worth every penny.

"You have a better chance of reaching people with the Super Bowl than with any other media buy that's available," said John Ferret, professor of advertising at Boston University.

Some 97.5 million people tuned into the game last year, according to the Nielsen Company.

Only the World Cup can compete in terms of size and scope, but that's for a different type of "football" that doesn't generate much excitement among North Americans.

"The Super Bowl is completely unique in its ability to reach everybody at the same time," said Tim Calkins, marketing professor of the Kellogg Super Bowl Advertising Review. "There's nothing else that's even close."

Many of last year's advertisers will continue to run ads for the 2009 game, including soft drink makers Coca Cola and PepsiCo; auto industry companies like Audi, Hyundai and Bridgestone; online marketplaces like GoDaddy.com and E*Trade Financial, the pet food company Pedigree, and the National Football League, which advertises for free.

Iconic Super Bowl advertiser Anheuser-Busch is running 4.5 minutes worth of spots, a half-minute more than last year (for all of you trying to calculate that, and looking around for calculators, that's $27 MILLION dollars!!!)

"We're obviously the game's single biggest advertiser and have been for some time," said Bob Lachky, chief creative officer for Anheuser-Busch. "It's the one time when you can get, in one setting, the biggest concentration of adult beer drinkers at one time. This is a huge, huge selling platform for us."

The Super Bowl may be synonymous with beer for many Americans, but the spots are coveted by advertisers of all stripes, because of the unusually ad-friendly culture.

"What makes the Super Bowl unique is that this is the one time every year where, instead of complaining about advertising, we celebrate advertising," said Peter Blackshaw, chief marketing officer for Nielsen Buzz Metrics. "You can't really beat the reach and you don't have to worry about people flipping on the DVR fast forward button, because people like to watch the ads."

Super Bowl and the recession

But not everyone believes that Super Bowl spots are worth the money, and the recession has taken its toll on at least a couple of long-time advertisers.

FedEx won top ratings from the Kellogg School of Management for its 2008 Super Bowl spot, which showed a gargantuan carrier pigeon wrecking havoc on city streets. But for 2009, the shipping company refrained from buying a spot for the first time in 12 years.

"As a country, we are in unprecedented economic waters," Steve Pacheco, managing director of advertising at FedEx, wrote in a corporate blog. "A Super Bowl ad buy is not where we should put dollars at this time although, in the past, the value of doing so for FedEx has been indisputable."

General Motors, the official Super Bowl sponsor, used an animated, 60-second spot during last year's game to unveil its GMC Yukon Hybrid. But the automaker will not be airing a commercial this year. GM spokeswoman Kelly Cusinato said the company made that decision back in September.

"It just wasn't a good enough return on the investment for that, because we didn't have a major vehicle launch that aligned with the timing of the Super Bowl," said Cusinato. "Then we went to Congress, and the economy got worse and we started scaling back a lot of other sponsorships."

When auto executives went hat in hand to Congress last December, GM was strongly advised not to run a Super Bowl ad this year.

But not all automakers are shunning Super Bowl air time. Audi and Hyundai have both bought spots for the 2009 game.

Audi plans to run a 60-second commercial for the second year running, following its well-received "Godfather" themed ad for the R8 luxury sports car. Hyundai plans to unveil its 2010 Genesis Coupe with two commercials, featuring a race course run choreographed to the playing of cellist Yo-Yo Ma.

Stuck with an expensive spot

Calkins of the Kellogg Super Bowl Advertising Review said that much of the air time was sold in September, and that some advertisers might regret their purchases, given the worsening state of the economy.

"Early in the fall, most of the spots were sold out," he said. "That, of course, was before the economy really went south. The advertisers were stuck with them. There was a very strong initial demand, and there's a very different climate right now."

But for GoDaddy.com, a domain name marketplace that keeps censors on their toes with its risqué ads, there is no time like the present. The company has purchased a Super Bowl spot for its fifth consecutive year.

"Our theory on advertising is that when the economy is having some issues, that is not the time to cut your advertising budget," said GoDaddy.com executive vice president Barb Rechterman.

People who left great jobs to fly solo

They left the comfortable corporate cocoon to blossom

Working at a big company. A Big salary. Get a BIG sendoff.

That's the formula millions of American workers used for years to map their career trajectory. Conventional wisdom advised workers to land a job with a big company and retire with generous benefits.
But there's a new breed of worker who is making that formula seem as quaint as a VHS tape.

They are the ultimate risk-takers -- they leave large, successful companies, with the high paying salaries and securities the jobs offer, to pursue their own dreams even though the economy is reeling.

They are people like....

Jason Shellen, who resigned as Google's manager of new business development in 2007 to launch Plinky.com, a startup that's designed to inspire bloggers and users of social media sites. Shellen says he was getting complacent working at Google, despite the company's domination of the Web.

He says he decided to leave Google despite a shaky economy because he wanted to force himself to change.

"Being an entrepreneur is all about risk and innovation, not timing the market," Shellen says. "A good idea doesn't wait for the perfect time to emerge. The ability to build something new outweighed the need for stability."

Why leave a sure thing?

Stability, though, seems to be a rare quality in the workplace. Those who contemplate leaving the corporate cocoon can't help but pay attention to the constant news about corporate layoffs.

Their challenge: Why leave a comfortable position in corporate America when there seem to be so few out there?

Michael Rhim had to face that question. He says he was a regional vice-president at TIAA-CREF, a company that provides retirement plans for nonprofit groups.. He says the company had 5,000 employees, $400 billion in assets and 17,000 clients at its peak.

But Rhim says he started contemplating a change because TIAA-CREF's corporate culture was changing. He started talking with a friend who ran a consulting firm, and he started paying attention to his emotions.

"It was getting more difficult to get up in the morning," he says. "I wasn't enjoying my old job as much as I used to. The more I talked about the job with my new partner, the more excited I got."

Rhim left TIAA-CREF in March of 2008.

He is now an executive at a new company, PRM Consulting, which has 25 employees. Now he does much of his own typing. He can't take clients to fancy restaurants. He even uses recycled paper for scrap paper to save costs.

Though Rhim misses the perks of a large company, he says he received a lot more in return.

"There's much quick decision making," he says. "I work in a culture where we are not afraid to try new things."

Shellen, who resigned from Google to start Plinky, says the large resources of a company can actually slow down the creative process. A person might want to invent a product, but small things like the name of the product end up being discussed in a committee.

"You don't find that in a small company," he says. "At my new company, Plinky, we sometimes dream things up in the morning and by the afternoon have it live on the Web. That never happens at a big company."

Greater freedom is also what inspired Vanessa Fox to resign from her position at Google, where she helped build Webmaster Central, one of the company's most successful projects.

Today, Fox is the founder of "Jane and Robot," which helps web site developers ensure their sites can be found by potential customers, and "Nine By Blue," which helps businesses use online data to better understand their customers.

Fox says the challenge of creating something in an evolving space like the Internet was too great to pass up.

"As hokey as it sounds, there's more to life than money," she says. "As much as I loved working at Google, I am really enjoying the flexibility I have now, as well as the ability to really make a difference in the direction I choose to go in."

Planning your exit

Those who leave the security of corporate life should not do it without research and a plan, some say.

The notion of suddenly bolting a cushy corporate dream to follow one's bliss may seem romantic. But some who've done it say those thinking about making a change should make a frank appraisal of their talents and latch onto something unique that they have to offer.

Rhim, the retirement planning consultant, says he knew the IRS would soon change the retirement plans for nonprofit groups. He knew his expertise would be in demand.

"I sat down and put together a three-month planning process," he says. "I knew there was going to be a market out there where firms needed additional guidance."

All the careful planning, though, didn't remove his fear, Rhim says. But he discovered something remarkable. Once he committed to leaving, doors suddenly opened for him: People materialized to help him and amazing coincidences led to business opportunities.

Rhim, a devout Christian, says it seemed like his leap of faith was being rewarded.

"No question, it was a scary proposition," Rhim says. "But my pastor preached about when you do the right things, the Lord will bless you as he sees fit."

Yet Rhim says he knew he couldn't just lean on faith.

"If you realize that you have some skill sets that are valuable, you can market yourself accordingly," Rhim says. "If not, you're sitting there, waiting to see if you're going to be downsized."

Rhim says he's happy with his move. He sometimes misses having the muscle of a big company behind him, but he no longer feels he's being controlled by larger forces.

He may have to do his own typing now, but at least he is writing his own script, he says.

"If you allow yourself to have other people continue to dictate your future," Rhim says, "you're at their mercy."

Porn industry seeking federal bailout

As the global financial crisis continues...Another major American industry is asking for assistance: Hustler publisher Larry Flynt and Girls Gone Wild CEO Joe Francis said today that they will request that Congress allocate $5 billion for a bailout of the adult entertainment industry.

“The take here is that everyone and their mother want to be bailed out from the banks to the big three,” said Owen Moogan, spokesman for Larry Flynt. “The porn industry has been hurt by the downturn like everyone else and they are going to ask for the $5 billion. Is it the most serious thing in the world? Is it going to make the lives of Americans better if it happens? It is not for them to determine.”

Francis said in a statement that “the US government should actively support the adult industry's survival and growth, just as it feels the need to support any other industry cherished by the American people."

“We should be delivering [the request] by the end of today to our congressmen and [Secretary of the Treasury Henry] Paulson asking for this $5 billion dollar bailout,” he says.

Flynt and Francis concede that the industry itself is in no financial danger — DVD sales have slipped over the past year, but Web traffic has continued to grow.

But the industry leaders said the issue is a nation in need. "People are too depressed to be sexually active," Flynt said in the statement. "This is very unhealthy as a nation. Americans can do without cars and such but they cannot do without sex."

"With all this economic misery and people losing all that money, sex is the farthest thing from their mind. It's time for congress to rejuvenate the sexual appetite of America. The only way they can do this is by supporting the adult industry and doing it quickly."

Larry Flynt is probably not completely serious about his request (probably? maybe? hopefully??).
I think his point is that the government is bailing out industries and companies which should never have been bailed out. There has been a very bad precedent put in place by the federal government.

As of right now, there has been no congressional reaction to the request.

I'm still going to ask, as I have in the past.... WHERE'S MY BAILOUT????

Lower prices needed to drive tech sales

Technology companies will need to lower prices this year to appeal to consumers, says David Silverberg, managing editor of DigitalJournal.com.

There will be sharp discounts coming this year as companies struggle to sell products to buyers who are watching their cash in the face of the economic downturn.

"So there will be fewer big video-game titles this year because they are costly to produce, and "a lot more simpler games," he predicted. Karaoke-type games that can be played with friends, such as Guitar Hero, will continue to be popular," he said.

But even if consumers do hold back, there will still be new gadgets and applications this year.

"Communications-device companies Research in Motion and Nokia will jump on the applications bandwagon, following the path set by Apple Inc.'s iPhone," Silverberg said.

"GPS on cellphones "will really be huge," while organic light-emitting diode (OLED) TVs will come on strong, if the price comes down. At the moment, an 11-inch Sony OLED TV costs $2,500," Silverberg said.

"But OLED TVs "trump LCD big time," because the resolution and colours are much better, and they draw less energy," he said.

"Social networking will continue to be popular, and the next step may be corporate use of the sites to connect with customers and link staff," Silverberg predicted. But current users may feel that is an intrusion, he said.

This could be the year of the Blu-ray video format. After it beat out the competing HD format last year, manufacturers could put more money in to marketing and publicity.

"But lowering the cost of the players is key," Silverberg says.

Got laid off? Hyundai will take your car back

Those of you who are regular readers, or have gone through the archives of my posts, know of my gripes against the auto industry and the money they're asking for and taking, while still making lots of money... but here's something you don't hear about:

If you've been laid off, worried about job security, money being tight, not being able to pay your bills etc....and you just bought a hyundai... Don't worry about it!! Hyundai will take your car back...

The automaker's new incentive program aims to reassure car buyers who are worried about losing their jobs.

Hyundai Motor America is taking aim at Americans' worries about job security: If you buy a new Hyundai and lose your job within a year, you can give it back.

"In this uncertain economy, we are looking for ways to reassure shoppers that Hyundai still represents the best value in the auto industry," said John Krafcik, president and chief executive of Hyundai Motor America, the U.S. arm of the South Korea-based automaker, in a company statement.

"If you find that you cannot make your payment because of a covered life changing event, we'll allow you to return your vehicle and walk away from your loan obligation - and in most cases we will cover most, if not all of the difference," the carmaker's Web site says.

With no extra charge to the sticker price, the program pays the difference between the car's trade-in value at the time the owner files a claim and any remaining balance on the loan up to a maximum of $7,500.

"Hyundai is offering the program because its own market research showed car shoppers weren't attracted by rebates and other more normal incentives", said Joel Ewanick, Hyundai America's vice president for marketing. "People are simply too worried about making payments no matter how good the deal is," he said.

"Until they saw a change in that, customers just aren't going to buy," he said.

As defined by Hyundai, life changing events include involuntary job loss, personal bankruptcy if self-employed, getting transferred overseas and accidental death. The benefit will be given to any qualified Hyundai vehicle buyer or lessee, the carmaker says, regardless of health or employment history.

To get the benefit, the vehicle buyer must have made at least two payments before filing for the benefit, and buyers are responsible for any payments due before filing.

The program is managed by a Walkaway USA, a subsidiary of Dallas-based EFG Companies, which provides finance and insurance products and support services for auto dealers.

"The goal is that this gives the consumer the opportunity to avoid default and maintain their credit rating," said Jeff Beaver, senior vice president for marketing at EFG Companies.

Walkaway said it has been selling a similar program as an extra-cost product through various auto dealers in Canada since 2000. The company recently began offering similar plans in the U.S., but Hyundai will be the only manufacturer offering the plan nationally.

The program neatly fits the needs of Hyundai's market said Art Spinella, an analyst with CNW Market Research, and it builds on the 10-year 100,000 mile warranty that Hyundai began offering in the U.S. in 1998.

"Hyundai has kind of carved its own niche with warranties and it's been successful with it," he said.

The program should appeal to Hyundai buyers, according to Spinella, because they tend to have lower household incomes and are more likely to be worried about income loss than buyers of more expensive cars.

Customer value

Since the program is offered on all Hyundai vehicles with no extra charge, it's impossible to say whether it would really be worth it to consumers, said Peter Sorgenfrei, a New York-based automotive marketing consultant. It would depend on whether the dealer would have charged less for the vehicle without the protection, but it's impossible to know how much less.

Given the low odds even in today's economy, that any given Hyundai buyer would lose his or her income within a year, the protection wouldn't add much value to the typical consumer, according to Sorgenfrei. "Not a lot of people are going to take advantage of it," he said.

"Few of those drivers who lose their income," he said, "would want to give up a car they would need to find a new job and then commute to it."

"But some customers might want to trade in their new Hyundai for a less expensive used car," said EFG's Beaver, so the program benefits dealers by turning a customer with a financial problem into another potential sale.

While Hyundai will be the only carmaker offering a national program, Walkaway plans to allow auto dealers selling any brand to offer the program, said Beaver.

Regardless of the dealer or the vehicle brand, 12-month protection plans would always be offered at no extra charge, Beaver said, but customers could also purchase longer-term plans for an extra charge. Hyundai dealers will soon be able to offer longer coverage at additional cost, said Hyundai's Ewanick.

But even if it's never used, Sorgenfrei said, the plan has public relations value: The program should drive some car shoppers to at least consider a Hyundai and it will make them feel cared for.