Fare hikes, elimination of bus routes focus of CTA budget hearing

The second CTA fare hike in five years and a controversial plan that eliminates at least a dozen bus routes to free up money to add service on more crowded buses and trains were the focus of a public hearing Monday night on the CTA’s proposed 2013 budget.

The overwhelming majority of the 191 people who attended, amid tighter than usual security at CTA headquarters, wore yellow T-shirts calling on the CTA board to reverse its earlier decision to shorten the No. 11 Lincoln/Sedgwick bus route.

Pleas and demands to save the No. 11 bus route dominated the testimony. The  No. 11 route is being cut between Western and Fullerton avenues as part of a $16 million crowding-reduction plan that is slated to take effect Sunday.

Allan Mellis, a community activist in Lincoln Square, asked the CTA board to amend next year’s budget to find funds to restore the No. 11, which provides 5,800 rides on an average weekday, according to the CTA.

Ald. Ameya Pawar, whose 47th ward would lose a chunk of the No. 11 route, asked for time to work out a solution, including the possibility of using excess TIF funds from his ward. The CTA should not “fix a fiscal issue only to create a social problem” in terms of the toll the loss of No. 11 service would have on senior citizens and people living on fixed incomes, Pawar said.

The $1.39 billion CTA budget for next year erases a projected deficit by raising fares a total of $56 million and introducing $60 million in savings from labor unions and more than $50 million in management cuts and reforms, officials said.

But the price of one-day, three-day, seven-day and 30-day passes will increase effective Jan. 14 under the plan, while the full base fare will be frozen at $2.25 on the rail system and $2 on buses if transit cards are used to pay fares, or $2.25 for cash bus fares.

Reduced fares and passes for senior citizens and disabled people will also increase, and reduced fares for students will decline by 10 cents.

In addition, it will cost $5 instead of $2.25 to ride the Blue Line from O'Hare International Airport if a pass is not used.

No major service cuts or CTA employee layoffs will be needed to balance the budget, officials said.

CTA President Forrest Claypool said the changes in next year’s budget deliver fiscal stability to the agency’s operating budget and prevent the need for more fare increases over perhaps a decade.

The CTA, however, faces an estimated $15.9 billion backlog in major capital improvements to bring stations, tracks, viaducts and other infrastructure as well as buses and trains to a state of good repair over the next 10 years, according to a study commissioned by the Regional Transportation Authority.

A crowding-reduction initiative that is scheduled to begin Sunday  will cancel 12 bus routes and shorten two others. In addition, nine privately contracted CTA routes would be eliminated if subsidies provided by businesses aren't increased, officials said.

More service will be added to 48 bus routes and six of the eight rail lines with the goal of speeding travel times and making the ride more comfortable by reducing crowding by 10 percent to 15 percent during rush periods, according to the transit agency.

At Monday’s meeting, William Scott, a retired teacher who lives in Drexel Square, said other bus routes besides No. 11 suffer from serious problems too. He said it's difficult to find a seat on the No. 4 Cottage Grove bus.

Claypool responded that service will be added on the No. 4 under the de-crowding plan.
Neither Claypool nor CTA board Chairman Terry Peterson spoke about the possibility of altering the budget or the de-crowding plan.

Other people who testified complained about the CTA plan to more than double the fare, to $5, for trips beginning at O'Hare on the Blue Line.

Marge Demora, who works for United Airlines at the airport, said “it’s discrimination to single out O'Hare fares.” She said workers at restaurants and other jobs that pay minimum wages at the airport will be the hardest hit.

On buses that typically carry 70 passengers, the new target will be 45 to 55 passengers per bus, CTA officials said. Rail cars packed with 90 or more riders at maximum capacity are expected to have 70 to 75 passengers, officials said.

CTA officials said service will be increased on bus and rail routes used by 76 percent of the CTA’s total ridership.

But the bus service cuts, which the CTA board has already approved, have sparked vocal protests from some riders, particularly those who are rallying to save the No. 145 Wilson/Michigan Express and the No. 11 Lincoln/Sedgwick bus route, which is slated to stop operating between Western and Fullerton. CTA officials said the No. 11 service is redundant with the Brown Line between Fullerton and Western. A new route, the No. 37 Sedgwick, will be created.

jhilkevitch@tribune.com

Twitter @jhilkevitch

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Google’s Gmail service suffers disruption

SAN FRANCISCO (Reuters) – Several Google Inc Web products, including the popular Gmail service, appeared to go dark for users on several continents on Monday.

Google confirmed that “service disruptions” had affected Gmail and Google Drive, its online storage service. The two products are part of Google’s Apps suite, a Microsoft Office rival that caters to both consumers and businesses.

By 10:10 a.m. Pacific Time (1.10 p.m. EST), Google’s Apps Dashboard monitoring service reported that Gmail and Drive service had resumed. The company did not specify how many users were affected, or where, but the outage prompted widespread complaints on social media on both coasts in the U.S. and other major markets, from the United Kingdom to Brazil.

Some users additionally reported that the outage had affected Google Docs, the company’s word-processing and spreadsheet programs, while Chrome, Google’s Internet browser, also crashed unexpectedly.

“We are currently experiencing an issue with some Google services,” Google spokeswoman Andrea Freund said in a statement. “For everyone who is affected, we apologize for any inconvenience you may be experiencing.”

Firmly entrenched in the consumer market, Gmail is one of Google’s most popular and important product offerings. The search giant, which has been pushing a corporate version of the email service and its Apps suite to businesses to compete with Microsoft, said this month that the package will no longer be free to business customers.

(Reporting By Gerry Shih; Editing by Andrew Hay and Nick Zieminski)

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Jenni Rivera’s family hopes Mexican-American singer still alive

LOS ANGELES (Reuters) – The family of Mexican-American singer Jenni Rivera said on Monday they are holding onto hope that she may still be alive, although U.S. officials said earlier that she died on Sunday in a plane crash in Mexico.

“In our eyes, we still have faith that our sister will be OK,” Rivera’s brother Juan told reporters outside the family house near Long Beach, California.

“We thank God for the life that he has given … my sister,” said Juan Rivera, also a singer. “For all the triumphs and successes she has had, and we expect that there will be more in the future.”

Rivera, 43, died after the small jet she was traveling in crashed in northern Mexico on Sunday, U.S. officials said. Rivera’s father, Pedro, told Telemundo television on Sunday that everyone on the plane had died. So far, authorities have not announced the recovery of any bodies.

The U.S. National Transportation Safety Board said it was helping Mexican authorities with the investigation of the crash of the private Learjet LJ25.

The plane crashed at about 3:30 a.m. local time (4.30 a.m. EST) in the municipality of Iturbide some 70 miles south of Monterrey, from which the singer and six others were en route to Mexico City.

Rivera was to perform in the city of Toluca, 40 miles southwest of Mexico city, in central Mexico after a concert in Monterrey on Saturday night.

It is not clear what caused the crash, and the Mexican transportation ministry said the wreckage was strewn so far about that it was difficult to recognize the crash site.

Rivera was born in Long Beach to Mexican immigrants and lived in suburban Los Angeles. She was a giant figure in the Mexican folk nortena and banda genres.

She had sold 15 million albums in her 17-year career and garnered a slew of Latin Grammy nominations.

“The entire Universal Music Group family is deeply saddened by the sudden loss of our dear friend Jenni Rivera,” the singer’s record label said in a statement.

“From her incredibly versatile talent to the way she embraced her fans around the world, Jenni was simply incomparable,” Universal added in the statement. “Her talent will be missed; but her gift of music will be with us always.”

In recent years Rivera had branched out into television with a reality television show and as a judge on the Mexican version of the singing competition “The Voice.”

(Reporting by Eric Kelsey; Editing by Jill Serjeant and Lisa Shumaker)

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Rate of Childhood Obesity Falls in Several Cities

PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.

The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.

“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.

The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.

The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.

Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”

Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.

Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.

Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.

Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.

But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.

“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”

Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.

Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.

“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”

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'Dollar Menu' sparks McDonald's rebound

McDonald's took Wall Street by surprise Monday morning, with a November same-store sales report that beat expectations and showed particular strength in the U.S. business.

The news follows a weak performance in October that had some investors speculating about the future of the world's largest restaurant company.

The Oak Brook-based burger giant reported U.S. same-store sales up 2.5 percent on the strength of its breakfast business, value offerings, beverages and limited-time offers like the cheddar bacon onion sandwich. In Europe, same-store sales grew 1.4 percent, and 0.6 percent in the chain's Asia/Pacific, Middle East and Africa division.

Overall, same-store sales increased 2.4 percent, beating various expectations for a roughly flat performance.

McDonald's has taken a tough stance on slipping U.S. sales as revived rivals like Wendy's and Burger King crank out new premium and value products. Days after releasing a report that showed October's rare drop in monthly same-store sales, McDonald's said its U.S. president, Jan Fields, had resigned and would be replaced by Jeff Stratton, who had been the company's global restaurant officer.

"We are strengthening our focus on the global priorities that are most impactful to our customers — optimizing our menu, modernizing the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.

While the sales report is likely to be a boost for the fast-food chain, investors don't expect company performance to return to normal levels until early 2013.

"One month does not a trend make … but it's a nice sign to see them rebound after a horrible October," ITG Investment Research analyst Steve West said.

Analysts expect volatile industry sales in the coming quarters as countries around the world grapple with economic woes and high unemployment. Profits could get squeezed as diners shop around for deals and restaurants respond by keeping prices down.

"We are concerned about the margin outlook in this more promotional environment," said Lazard Capital Markets analyst Matthew DiFrisco.

McDonald's "ramped up its value messaging, focusing heavily on the Dollar Menu to help drive traffic," Jefferies & Co restaurant analyst Andy Barish said in a research note.

The company has been promoting both the Dollar Menu and its Extra Value Menu, which includes offerings like 20 Chicken McNuggets for $4.99, to lure diners.

Baird analyst David Tarantino raised his fourth-quarter earnings estimate by a penny per share Monday morning following the sales announcement. He wrote that while company performance "could remain soft" through the first quarter, "the November sales report supports our thesis that McDonald's can achieve better performance in 2013 as a whole, with results aided by planned initiatives (including increased emphasis on value plus premium offerings across markets), fewer cost pressures, and less negative currency translation."

McDonald's shares closed up 93 cents, or 1 percent, at $89.41.

Reuters contributed.

eyork@tribune.com

Twitter @emilyyork

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Mexican-American singer Jenni Rivera feared dead in plane crash

The wreckage of a small plane believed to be carrying Jenni Rivera, the U.S-born singer whose soulful voice and unfettered discussion of a series of personal travails made her a Mexican-American superstar, was found in northern Mexico on Sunday. Authorities said there were no survivors.

The singer's father, Pedro Rivera, said he thinks his daughter was on board the plane and that her brother will travel to Mexico on Monday to identify what they presumed were her remains.

Born in Long Beach, California, Jenni Rivera was at the peak of her career as perhaps the most successful female singer in grupero, a male-dominated regional style influenced by the norteno, cumbia and ranchero styles.

A 43-year-old mother of five children and grandmother of two, the woman known as the "Diva de la Banda" was known for her frank talk about her struggles to give a good life to her children despite a series of setbacks.

She was recently divorced from her third husband, was once detained at a Mexico City airport with tens of thousands of dollars in cash, and she publicly apologized after her brother assaulted a drunken fan who verbally attacked her in 2011.

Her openness about her personal troubles endeared her to millions in the U.S. and Mexico.

"I am the same as the public, as my fans," she told The Associated Press in an interview last March.

Rivera sold 15 million records, and recently won two Billboard Mexican Music Awards: Female Artist of the Year and Banda Album of the Year for "Joyas prestadas: Banda." She was nominated for Latin Grammys in 2002, 2008 and 2011.

Transportation and Communications Minister Gerardo Ruiz Esparza said "everything points toward" the wreckage belonging to the plane carrying Rivera and six other people to Toluca, outside Mexico City, from Monterrey, where the singer had just given a concert.

"There is nothing recognizable, neither material nor human" in the wreckage found in the state of Nuevo Leon, Ruiz Esparza said. The impact was so powerful that the remains of the plane "are scattered over an area of 250 to 300 meters. It is almost unrecognizable."

Rivera's father told dozens of reporters gathered in front of his Los Angeles-area home that "I believe my daughter's body is unrecognizable."

"My son Lupillo told me that effectively it was Jenni's plane that crashed and that everyone on board died," Pedro Rivera said.

Rivera said his son would travel to Monterrey early Monday morning.

No cause was given for the plane's crash, but its wreckage was found near the town of Iturbide in Mexico's Sierra Madre Oriental, where the terrain is very rough.

The Learjet 25, number N345MC, took off from Monterrey at 3:30 a.m. local time and was reported missing about 10 minutes later. It was registered to Starwood Management of Las Vegas, Nevada, according to FAA records. It was built in 1969 and had a current registration through 2015.

Media and celebrities in Mexico sent condolences to Rivera's family even though authorities still had not confirmed that she was aboard the plane and said an investigation would be conducted.

"My friend! Why? There is no consolation. God, please help me!" said Mexican pop singer Paulina Rubio on her official Twitter account. Singer Miguel Bose, who appears on the Mexican show "The Mexican Voice" along with Rivera, wrote on his Twitter account: "My dear Jenni, you will always be in my heart. Forever. I love you."

Also believed aboard the plane were her publicist, Arturo Rivera, her lawyer, makeup artist and the flight crew.

Though drug trafficking was the theme of some of her songs, she was not considered a singer of "narco corridos," or ballads glorifying drug lords like other groups, such as Los Tigres del Norte. She was better known for singing about her troubles in love and disdain for men.

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In giant “garage sale”, Japan’s TV giants hawk $3 billion of assets

TOKYO (Reuters) – Panasonic Corp, Japan‘s struggling maker of Viera brand TVs, owns more than 10 million square meters of office and factory space, dormitories for its workers and sports facilities for its rugby, baseball and women’s athletics teams.

As it battles for Christmas shoppers’ wallets in the year-end holiday season, the sprawling electronics conglomerate is also seeking buyers for some of those properties to trim its fixed costs and improve cashflow at a time of intense competition, particularly from South Korean rivals such as Samsung Electronics Co.

Japan’s other troubled TV makers, Sony Corp and Sharp Corp, are also selling buildings and businesses in a giant ‘garage sale’ that could raise a combined $ 3 billion.

Panasonic plans to raise $ 1.34 billion from offloading property and shares in other Japanese companies by end-March, the group’s chief financial officer Hideaki Kawai told Reuters.

“We have a lot of land and buildings in Japan and overseas,” he said in an interview at the company’s head office in Osaka, in western Japan. He declined to list which properties would go on the block, but said most are in Japan.

Included is a 24-storey central Tokyo block – built in 2003 with more than 47,300 square meters and housing 2,000 Panasonic workers – a source familiar with the plan told Reuters.

Kawai added that Panasonic would raise about a quarter of the sell-off funds by getting rid of shares it owns in other companies – a common practice of cross-shareholdings in Japan.

The proceeds would help bolster free cashflow to 200 billion yen ($ 2.43 billion) for the business year to March, Kawai said, and allow Panasonic to reduce its debt and maintain its crucial research and development effort as it revamps its business portfolio.

It will sell more assets in the year starting in April if cashflow dips below 200 billion yen, Kawai added. Panasonic President Kazuhiro Tsuga has promised to shut or sell businesses operating at below a 5 percent margin. Those sales could start as soon as April.

Panasonic’s fixed assets of $ 21 billion are around 30 percent more than those of Apple Inc, and are almost double the company’s market value. The company, founded almost a century ago as a small electrical extension socket maker, trades at around half its book value – which includes intangible assets such as patents. Sony trades at 39 percent of book, Sharp at 30 percent.

The fixed assets – buildings, land and machinery – of the three companies that were not so long ago a byword for innovation in household gadgetry total around $ 42 billion, while their combined market value is $ 24 billion.

CASHFLOW IS KING

The three firms have been downgraded by credit ratings agencies, making it tougher to raise funding on capital markets, and making asset sales more urgent.

Selling assets “is good in terms of their credit ratings because, for all three, it will lower fixed costs and they can reduce their capex requirements. Eventually, this could improve operating margins and, more importantly, cashflow,” said Alvin Lim, an analyst at Fitch Ratings in Seoul.

Fitch, which makes its ratings without input from company management, last month cut Panasonic to BB and Sony to BB minus, the first time one of the major agencies has relegated either company to junk status. Sharp is ranked B minus, adding to its borrowing costs.

“We rate Panasonic as investment grade, and it should have various funding options. Selling assets it can do without, to avoid raising additional borrowing, can be an option,” said Osamu Kobayashi, an analyst at Standard & Poor’s.

While Korean rivals have also benefited from a weaker local currency, data from the Japan Electronics and Information Technology Industries Association shows that Japanese production of consumer electronic equipment fell to just above $ 15 billion last year from more than $ 19 billion a decade ago. Output in September was just $ 980 million, half last year’s level.

“The gap with Korean makers seems to be widening. It’s going to be very difficult for them to regain their top-tier position,” said Fitch’s Lim.

As the three Japanese firms, all under new leadership, have sketched out restructuring plans, the cost of insuring their debt against defaulting in 5 years has dropped from spikes just a month ago. Credit default swaps for Sharp and Sony are down to levels last seen 3 months ago, while Panasonic’s have dropped 40 percent in the past month.

THREE PATHS

While Panasonic is looking to revamp its business around batteries, auto parts and household appliances, Sony is doubling down on smartphones, gaming and cameras. Sharp, meanwhile, is focusing on display screens and is forging alliances with the likes of Taiwan’s Hon Hai Precision Industry and U.S. chipmaker Qualcomm Inc.

Sony may also take the real estate sale route to raise much-needed cash, with a possible sale of its 37-storey New York headquarters, dubbed by New Yorkers as the ‘Chippendale’ because of its design that is reminiscent of the period English furniture. Selling that jewel could raise $ 1 billion, media have reported.

The maker of Vaio laptops, PlayStation gaming consoles and Bravia TVs may also sell its battery business, which makes lithium ion power packs for tablets, PCs and mobile phones. The company has been approached by investment banks offering to sell the unit, which employs 2,700 people and has three factories in Japan and two overseas assembly plants. Sony values the business’s fixed assets at $ 636 million.

Potential buyers could include BYD Co Ltd, a Chinese carmaker backed by billionaire investor Warren Buffett, and Taiwan’s Hon Hai – which part owns Sharp’s advanced LCD panel plant in Sakai, western Japan, and is in talks to buy TV assembly plants in China, Malaysia and Mexico for $ 667 million, Japan’s Sankei newspaper has reported.

Sharp has mortgaged nearly all its properties to secure a $ 4.6 billion bailout from Japanese banks and so has few assets to offer in a grand garage sale.

Instead, it’s selling part of the garage.

Qualcomm has agreed to buy a 5 percent stake in Sharp, making it the largest shareholder. Hon Hai, which earlier this year agreed to invest in Sharp – before its stock slumped in the wake of record losses – has said it remains interested in taking a stake.

“Whatever they can get to get through this fiscal period by scaling down their operation is a critical step for them to remain afloat,” said Fitch’s Lim.

($ 1 = 82.4700 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ian Geoghegan)

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UK hospital says royal prank call appalling after nurse death

LONDON/PERTH, Australia (Reuters) – The London hospital that treated Prince William‘s pregnant wife Kate condemned on Saturday an Australian radio station that made a prank call seeking information about the duchess, after the apparent suicide of a nurse who answered the phone.

There has been renewed soul-searching over media ethics after Jacintha Saldanha, 46, the nurse who was duped by the station’s call to the King Edward VII hospital, was found dead in staff accommodation nearby on Friday.

The owners of Sydney’s 2DayFM said it had done nothing wrong and no one could have foreseen the tragic outcome of the stunt, but two leading Australian firms suspended their advertising.

The hoax, in which the radio hosts – posing as Britain‘s Queen Elizabeth and Prince Charles despite Australian accents – successfully inquired after Kate’s medical condition, has made worldwide headlines.

The hospital’s chairman Lord Glenarthur urged the station’s owners to ensure that such an incident could never happen again.

“It was extremely foolish of your presenters even to consider trying to lie their way through to one of our patients, let alone actually make the call,” he said in a letter to Southern Cross Austereo Chairman Max Moore-Wilton.

“Then to discover that, not only had this happened, but that the call had been pre-recorded and the decision to transmit approved by your station’s management, was truly appalling.”

The immediate consequence had been the humiliation of two “dedicated and caring” nurses, he said. “The longer term consequence has been reported around the world and is, frankly, tragic beyond words,” Glenarthur added.

Australians from Prime Minister Julia Gillard to people in the street expressed their sorrow and cringed at how the hoax had crossed the line of acceptability.

Two large companies suspended their advertising from the popular Sydney-based station and a media watchdog said it would speak with 2DayFM’s owners.

The hoax raised concerns about the ethical standards of Australian media, as Britain’s own media scramble to agree a new system of self-regulation and avoid state intervention following a damning inquiry into reporting practices.

Southern Cross Austereo Chief Executive Rhys Holleran told a news conference in Melbourne on Saturday that the company would work with authorities in any investigation. He said he was “very confident” that the radio station had done nothing illegal.

“This is a tragic event that could not have been reasonably foreseen and we are deeply saddened by it. Our primary concern at this stage is for the family of Nurse Saldanha.”

Holleran added that 2DayFM radio hosts Mel Greig and Michael Christian were “completely shattered” by Saldanha’s death. The pair will stay off the air indefinitely, he said.

London detectives have sent a request to Sydney police to question the two presenters, Britain’s Sunday Times said.

“Officers have been in contact with Australian authorities,” a spokesman for London’s Metropolitan Police said.

Two high-profile Australian firms, the Coles supermarket group and phone company Telstra, said they were suspending advertising with the station.

Austereo said all advertising on 2DayFM had been shelved until at least Monday in a mark of respect to advertisers whose Facebook pages were inundated with thousands of hate messages.

The Twitter accounts of Greig and Christian were removed shortly after news of the tragedy in London broke.

SOCIAL MEDIA OUTRAGE

Social media were inundated with angry messages to the radio station in what has become the latest shock radio story to rile the Australian public. Earlier this year 2DayFM was reprimanded by Australia’s independent communications regulator after a radio host talked a 14-year-old girl into revealing on air that she had been raped.

So-called “shock jock” radio announcers are frequently denounced in Australia for their deeply personal and often derogatory attacks on politicians and ordinary citizens.

Communications Minister Stephen Conroy said that the independent broadcast regulator, the Australian Communications and Media Authority, had received complaints about the hoax.

The media fallout from the tragedy could extend beyond Australia’s shores, said British radio presenter Steve Penk, who has made a career out of prank calls.

“I think it will probably be the death of the wind-up phone call. I think (British media regulator) Ofcom will wrap it in so much red tape that it will make it almost impossible to get these things on the air,” he told Sky News.

Saldanha lived with her husband and two children in the western English city of Bristol. She moved to Britain from India around 10 years ago, British media reports said.

Her husband’s family, who live in the southern Indian state of Karnataka, told news agency Asian News International they would miss their “good-natured and beautiful” relative.

“At eight o’clock in the morning, he (Saldanha’s husband) rang up to say that she is no more, more than that we do not know about what actually happened. She is dead, that’s all,” said Camril Barboza, Saldanha’s mother-in-law.

The British royal family has long had an uneasy relationship with the media, which sank to its lowest after the 1997 death of Prince William’s mother Diana in a Paris car crash.

Palace officials acted swiftly this summer when a French magazine printed topless photos of Kate on holiday, taking legal action to curb republication.

Saldanha’s death threatens to cast a pall over the enthusiastic public welcome given to Kate’s pregnancy, which dominated newspaper front pages this week.

(Writing by Tim Castle and Jeremy Laurence; Editing by Mark Heinrich and Stephen Powell)

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Italy Grapples With Polluting by Ilva, a Giant Steel Maker

Alessandro Penso for The New York Times

The Ilva steel plant, in Taranto, Italy, above, employs thousands of workers but is seen as a health threat by residents and courts.

TARANTO, Italy — Every morning, Graziella Lumino cleans the black soot from her kitchen window, which looks out on the hulking Ilva steel plant where her husband, Giuseppe Corisi, worked for 30 years.

After he died this year at the age of 64 from violent, sudden-onset lung cancer, his friends put a plaque on the wall of their apartment building: “Here lived the umpteenth death from lung cancer. Taranto, March 8, 2012.”

Today, Ilva, which is among the largest plants in Europe and produces more than 30 percent of Italy’s raw steel, is at the heart of a clash over the future of Italian industry, one that pits economic concerns against environmental ones and the power of the government against the judiciary amid Italy’s struggle to compete in a global economy.

After a court ordered sections of the plant closed and steel from it impounded last month, arguing that it had violated environmental laws and was raising serious health concerns in the area, the government passed an emergency decree that would allow it to continue operating while cleaning up its act, saving 20,000 jobs nationwide. Magistrates said that the new law, which must be approved by Parliament, violated the Constitution by allowing the executive branch to circumvent the judiciary.

In many ways, the Ilva plant is an emblem of the Italian economy that the technocratic government of Prime Minister Mario Monti inherited last year and has been trying to repair before elections expected early next year. It is the product of decades of physical and political neglect, an aging industrial giant that came of age in the economic boom of the late 20th century and is struggling to keep pace in the 21st.

For Italy, though, the plant is too big to fail. It produces about 8 percent of European steel — and the government estimates that stopping production would cost the Italian economy more than $10 billion a year.

But the environmental concerns are real. Dark plumes of smoke billow from stacks dominating the landscape, while dust from the plant stains the white tombstones in the local cemetery a rusty pink. An ordinance forbids children from playing in unpaved lots. In 2008, a local farmer was forced to slaughter 2,000 sheep after they were deemed contaminated with dioxin.

Some studies have found that cancer rates in Taranto, an ancient harbor in the heel of Italy’s boot, are over 30 percent higher than the national average, and far higher for certain cancers, particularly of the lungs, kidneys and liver, as well as melanomas.

Bruno Ferrante, the president of Ilva, said that the Riva Group, which owns the plant, has been spending from $325 million to $400 million a year to upgrade the plant since it bought it in 1995.

Mr. Ferrante added that cancer rates had been falling recently — government-approved studies bear that out — but acknowledged that there was more to be done. “The pink dust is certainly a problem, and we are aware of it,” he said.

Arguments about the plant’s economic importance fall on deaf ears here. “Health comes first,” Ms. Lumino said, sitting in her apartment with photos of her husband, including one on a chain that hung from her neck. He was one of many Ilva workers sent into early retirement in 1998 after the plant found evidence of asbestos contamination. “If you have money but not your health, what good is it?” she asked.

Ms. Lumino remembered a time before the plant was built. “There were farms, clean air, olive and almond trees,” she said. “We would picnic by the coast every Easter Monday.”

Even with the new decree, the conflict is far from over. The decree orders the Riva Group to invest $3.8 billion to reduce its emissions and bring the plant up to code before 2016, the deadline for other European countries to modernize.

If Riva fails to do so, the new law would give the government more powers to intervene. If Riva is unable to raise enough money to modernize, it could ask for European Union subsidies or sell the plant, which could jeopardize Italy’s European standing.

Brazilian companies are already eying Ilva, according to Italian news media reports. Mr. Ferrante said that Riva had no intention of selling and had a “pretty significant” ability to borrow more money and also draw on European Union cofinancing.

Gaia Pianigiani contributed reporting.

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Huppke: Don't be afraid to hire people with disabilities

One of the best experiences of my life was watching Jamie Smith, a young man with autism, leave his routine in Chicago, travel to the Special Olympics World Games in the chaotic Chinese city of Shanghai — and succeed.

Jamie's success — managing in a foreign country and bringing home a silver medal — was the result of one thing: hard work. And I've yet to meet a harder worker than him, or a person who more appreciates the opportunities a job presents.

Our workplaces have grown diverse, but jobs remain far too scarce when it comes to people with autism or other intellectual disabilities. Unemployment rates vary depending on the study but hover around 80 percent, and people with disabilities who do get jobs are routinely paid less than other workers. A stigma surrounds people with disabilities, and employers fear that accommodating workers from this demographic might be cost-prohibitive.

Fortunately, some progress is being made.

Walgreen Co., for example, has for years welcomed workers with intellectual disabilities. In 2007, it opened a distribution center in Anderson, S.C., with the goal that people with disabilities would make up 33 percent of the staff and be paid and treated the same as any other employee.

That number now tops 40 percent, and the company opened a similar center in Connecticut in 2009. It also has begun a separate program that recruits people with disabilities to work in Walgreen stores.

The results, according to Deb Russell, a manager in the company's diversity and inclusion department, have been statistically excellent. Turnover among employees with disabilities is 50 percent lower than that among nondisabled employees, and accuracy and productivity measurements are the same.

"People think accommodations will be expensive and daunting," Russell said. "What we found, especially on the accommodations front, is that it's minimal. Over the thousands of people we've had in the distribution centers, we've spent less than $50 per person. A lot of the time, all the accommodation they need is an open mind."

She said that more than 100 Fortune 500 companies have toured the South Carolina facility to learn more about the program.

"We've been so proud to see quite a few companies coming out recently with programs that are similar to ours," Russell said. "They take what we're doing and make it their own."

What's important to realize is that when Walgreen and other companies hire people with intellectual or other disabilities, they aren't doing it as an act of charity. They're doing it because the people they're hiring are good employees who help the company make money.

Scott Standifer, a University of Missouri researcher who studies employment issues affecting adults with autism, said he's encouraged to see large companies such as Walgreen, AMC Theatres and the investment firm TIAA-CREF, to name a few, aggressively employing people with disabilities.

"For decades the employment specialists who work with people with disabilities have been saying things like, 'These people are very dedicated; they will really love the work; they'll be very loyal employees,'" Standifer said. "The business community knows these agencies are trying to sell their clients, they're trying to convince the businesses to hire them, so they're skeptical. And there hasn't been any data to really back up their claims.

"But now we've got some large corporations who have invested and are evaluating their disability employment projects and are able to talk to other corporations as corporate peers. It's one thing to have job developers coming and saying these people are good workers, give them a chance. It's another to have Walgreens say, 'We are making more money by hiring these folks.'"

Standifer wrote a paper titled "Adult Autism & Employment: A Guide for Vocational Rehabilitation Professionals," which provides a wealth of information for employers, from advice on interviewing people with autism to explanations of the disability. That paper can be found at: tinyurl.com/autismemploy.

He also said he hopes to see more coordination between people in the autism community and an employment resource found in every state — the vocational rehabilitation agency. This agency, overseen by the federal Rehabilitation Services Administration, focuses on finding jobs for people with physical disabilities, often veterans.

But Standifer believes these agencies may be better equipped than state groups to assist people with autism and other intellectual disabilities.

"It's hard for anybody to find a job," he said. "But these state agencies (that work with people with intellectual disabilities) don't have the 80 years of history that the vocational rehabilitation program has. One of the things that I'm excited about is that the autism community, as they start to understand vocational rehabilitation, will also start to lobby for increased vocational rehabilitation funding."

Standifer also pointed out that study after study has shown employing people with disabilities saves the country money.

"It has turned out to be cheaper and better to do whatever it takes to get people with disabilities working," he said. "When you support that, they don't need as many other social services. They're not needing Social Security disability income and other things. It's cheaper, it's better and it's healthier."

And, dare I say, it's the way things should be. Our workplaces have always benefited from inclusion.

We should aspire to work alongside people with disabilities, not as an act of good will, but with the hope that we might benefit by learning from each other.

TALK TO REX: Ask workplace questions — anonymously or by name — and share stories with Rex Huppke at ijustworkhere@tribune.com, like Rex on Facebook at facebook.com/rexworkshere, and find more at chicagotribune.com/ijustworkhere.

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