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Monday 7 august 2017 BUSINESS
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Profit at Buffett’s Berkshire falls 15% as costs rise Nissan workers

OMAHA, Neb. (AP) — Berk- reject UAW in its
shire Hathaway, the con- Mississippi vote
glomerate controlled by
billionaire Warren Buffett, By JEFF AMY
said this weekend that its Associated Press
second-quarter profit fell CANTON, Miss. (AP) —
15 percent as costs rose for Workers at a Nissan assem-
its various businesses and bly plant in Mississippi have
it earned less from its in- voted against forming a
vestments. Berkshire owns union, adding to decades
many companies, includ- of futility by United Auto
ing battery maker Dura- Workers organizers at for-
cell, underwear seller Fruit eign-owned auto plants in
of the Loom and candy the American South. Rep-
company See’s. It also has resentatives of Nissan Mo-
major investments in Coca- tor Co. and the UAW said
Cola Co., Wells Fargo & Co. this weekend that 2,244
and other companies. The workers, or 62 percent, vot-
Omaha, Nebraska-based ed against the UAW, while
company reported net in- 1,307, or 38 percent, fa-
come of $4.26 billion, or vored the union. Company
$2,592 per Class A share, spokeswoman Parul Bajaj
during the quarter. That’s said employees’ voice has
down from the $5 billion, been heard. “They have
or $3,042 per Class A share, In this Tuesday, June 14, 2016 photo, Berkshire Hathaway Chairman and CEO Warren Buffett rejected the UAW and
that it reported in the same addresses the White House. chosen to self-represent,
quarter a year ago. Op- (AP Photo/Cliff Owen) continuing the direct re-
erating earnings came to offer a better view of quar- 6 percent to $57.52 billion. vestment income fell while lationship they enjoy with
$2,505 per Class A share, terly performance because The company said costs insurance underwriting the company,” she said in
down from $2,803 per Class they exclude investments rose at its insurance busi- posted a loss of $22 million a statement. “Our expec-
A share a year ago. Buffett and derivatives, which can nesses, railroads and finan- compared with a profit of tation is that the UAW will
has said operating earnings vary widely. Revenue rose cial products providers. In- $337 million a year ago.q respect and abide by their
decision and cease their
Wells Fargo needs more time to review allegations efforts to divide our Nis-
san family.” The UAW has
never fully organized an
SAN FRANCISCO (AP) — potentially unauthorized international automaker in
Wells Fargo & Co. is ex- accounts,” the company the traditionally anti-union
panding an internal review said in the filing. Wells Fargo South, although it did per-
of its sales practices and projects that its review will suade some maintenance
says the move could un- be finished by the end of workers to join at a Volk-
cover significantly more the third quarter. It doesn’t swagen AG plant in Ten-
accounts opened by bank expect any costs stemming nessee. The UAW’s lack of
employees without cus- from the review to have a influence among southern
tomers’ consent. significant impact on the auto workers has reduced
The San Francisco bank company. Last month, the its bargaining power when
disclosed the broadened company disclosed that Detroit automakers lose
review in a filing Friday roughly 570,000 custom- market share and close
with the Securities and Ex- ers were signed up for and plants. After pouring re-
change Commission. billed for car insurance sources into the organiz-
Wells Fargo has been try- that they didn’t need or ing drive at Nissan, this loss
ing to repair its reputation This photo shows a Wells Fargo bank in northeast Jackson, Miss. necessarily know about. could leave UAW leaders
after admitting last fall that (AP Photo/Rogelio V. Solis) Many couldn’t afford the with tough decisions.
employees under pressure million. The lender is now tified by a consulting firm. extra costs and fell behind “The result of the election
to meet aggressive sales expanding its review of “We expect that our review in their payments. In about was a setback for these
targets opened as many as customer accounts go- of the expanded time peri- 20,000 cases, cars were re- workers, the UAW and
2 million accounts without ing back to 2009. Initially, ods, which adds over three possessed. The bank has working Americans ev-
getting customers’ permis- it planned to review ac- years to the initial review agreed to pay $80 million erywhere, but in no way
sion. The company ended counts going back to 2011. period of approximately in refunds and account should it be considered a
up paying $185 million to It also expects to complete four years ... may lead to adjustments to customers, defeat,” UAW President
regulators and settled a a review of potentially un- a significant increase in with checks starting to go Dennis Williams said in a
class-action suit for $142 authorized accounts iden- the identified number of out this month. q statement. q