Nearly 200 employees to be laid off in St. Paul as WestRock recycling plant closes

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Come July, nearly 200 people will be out of work as a storied St. Paul recycling facility closes permanently.

Smurfit WestRock, a global packaging company, announced Wednesday that it will lay off roughly 189 employees in the permanent closure of its St. Paul coated recycled board mill at 2250 Wabash Ave., off Interstate 94 and Minnesota 280, according to a notice filed with the state.

Layoffs are expected to occur June 30 with affected positions including, but not limited to, chemical attendant, paper tester, refiner operator, loader, electricians, managers and supervisors, according to the notice.

Of the employees affected, some are represented by the International Brotherhood of Electrical Workers (IBEW Local 110), the International Union of Operating Engineers (IUOE Local 70) and the United Steelworker of America (USW Local 264).

Bumping rights will follow applicable collective bargaining agreements and there are no trade implications at this time, per the notice.

In addition to the St. Paul facility, the company will discontinue production at its containerboard mill in Texas and permanently close two converting facilities in Germany totaling some 650 job losses, according to a company news release.

“While closing facilities is never an easy decision, it is based on a realistic expectation of current and future capacity needs, operating costs and an unrelenting focus on improving our business,” said Tony Smurfit, president and group chief executive officer of Smurfit WestRock, in the release.

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Sex assault reports in the US military fell last year, fueled by a big drop in the Army

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By LOLITA C. BALDOR, Associated Press

WASHINGTON (AP) — The number of sexual assaults reported across the U.S. military dipped by nearly 4% last year, fueled by a significant drop in the Army, according to a new Pentagon report. It was the second year in a row with a decrease, reversing a troubling trend that has plagued the Defense Department for more than a decade.

Senior defense officials said that while the decline is a good sign, the number of reported assaults is still too high and the military needs to do more to get victims to report the often undisclosed crime.

According to the report, there were 8,195 reported sexual assaults in 2024 involving members of the military, compared with 8,515 in 2023. In 2022, there were 8,942 reported sexual assaults, a spike that triggered widespread alarm and led to new programs and an infusion of funding to try to combat the problem.

The overall decrease was due to a 13% drop in reported sexual assaults across the Army, which is the largest military service.

All the other services saw increases. The Navy had the largest jump of 4.3%, while the Air Force had a 2.2% increase and the Marine Corps rose by less than 1%.

Of the 8,195 total, there were 512 service members who reported an assault that happened before they entered the military. The Pentagon encourages reporting so that victims can get any support they need. In addition, 641 were civilians who said they were assaulted by a member of the military.

Uncertainty about impact of job cuts on sexual assault programs

Speaking to reporters Thursday, Nate Galbreath, director of the Pentagon’s sexual assault prevention and response office, said it’s still not clear how the Trump administration’s personnel and budget cuts will affect these programs. He said officials are asking for details on the number of assault prevention staff who have been laid off or who took any of the early retirement offers.

Andra Tharp, director of the command climate office, added that “when the hiring freeze went into effect, there were about 300 prevention workforce positions posted on USA jobs that are essentially on hold.” But, she said, some departments have been able to get exemptions.

FILE – The Pentagon is seen in this aerial view, in Washington, March 27, 2008. (AP Photo/Charles Dharapak, File)

Galbreath said the department also is now able to link sexual assaults to military readiness. He said a survey showed that service members who had experienced assault were more likely to leave the military, be demoted, miss a promotion or have some other type of negative action put in their files than those who hadn’t been been victimized.

He said the survey followed troops who said in 2016 that they had experienced a sexual assault, and a group of others who did not.

As a result, he said the Defense Department is working to develop a recovery program to teach healthy coping skills and other assistance for victims. The department also has a Safe Helpline where troops can seek help.

Sexual harassment complaints rise

While reported assaults decreased, the number of sexual harassment complaints went from 2,980 in 2023 to 3,014 last year. Most were filed by female service members, and the vast majority of those accused were male.

The number of cases in which misconduct was substantiated increased a bit last year over the 2023 total. The number of discharges and administrative actions against alleged perpetrators continued to increase, and court-martial charges declined — both trends going back several years.

Officials noted that nearly three-quarters of the court-martial cases ended in convictions, a slight increase over the previous year.

Sexual assault reports in the military have gone up for much of the past decade, except for a tiny decrease in 2020, during the COVID-19 pandemic shutdown. Officials say they are optimistic about the recent decreases but say much more work needs to be done.

As in previous years, most sexual assault reports are filed by those between ages 18 and 24 and involve lower-ranking service members.

Impact of Pentagon changes

While it is difficult to point to any one reason for the two-year decline, the Defense Department has been making a series of changes over the past year that officials say may be contributing.

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The services were using more than $1 billion to improve programs and hire up to 2,500 personnel as part of a new “prevention workforce” and place them at military installations worldwide.

So far, about 1,400 have been hired, but that process has stalled due to the Trump administration’s budget and personnel cuts across the federal government. Defense officials said they are working to spread the existing workers around to lessen the gaps until more can be hired.

The latest report also reflects the first full year since new prosecution procedures have been in place, putting independent lawyers in charge of those decisions and sidelining commanders after years of pressure from Congress.

Officials said it is too soon to tell what effect those changes are having on prosecutions.

The Pentagon releases a report every year on the number of sexual assaults reported by or about troops. But because sexual assault is a highly underreported crime, the department also does a confidential survey every two years to get a clearer picture of the problem. That online survey came out last year, so it was not done this year.

Last year’s survey said more than 29,000 active-duty service members said they had experienced unwanted sexual contact in the previous year, compared with nearly 36,000 in the 2021 survey, according to several defense officials. The decrease was the first in eight years.

But officials said the survey also indicates that a large number of service members never file a report.

Defense officials have long argued that an increase in reported assaults is a positive trend because so many people are reluctant to report them, both in the military and in society as a whole. Greater reporting, they say, shows there is more confidence in the reporting system and greater comfort with the support for victims.

Average rate on a US 30-year mortgage eases to 6.76%, its second straight weekly decline

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The average rate on a 30-year mortgage in the U.S. eased again this week, modest relief for prospective home shoppers during what’s traditionally the busiest time of the year for the housing market.

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The rate fell to 6.76% from 6.81% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 7.22%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.92% from 5.94% last week. It’s down from 6.47% a year ago, Freddie Mac said.

Mortgage rates are influenced by several factors, including global demand for U.S. Treasurys, the Federal Reserve’s interest rate policy decisions and bond market investors’ expectations for future inflation.

When mortgage rates decline they help boost homebuyers’ purchasing power.

McDonald’s store traffic falls unexpectedly as diners grow uneasy about economy

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By DEE-ANN DURBIN

McDonald’s store traffic fell further than expected in the first quarter as economic uncertainty weighed on diners.

The trouble was particularly acute in the U.S., where same-store sales — or sales at locations open at least a year — slumped 3.6%. That was the biggest U.S. decline McDonald’s has seen since 2020, when a pandemic shuttered stores and restaurants and other public spaces nationwide.

McDonald’s Chairman and CEO Chris Kempczinski said lower- and middle-income consumers, worried about inflation and the economic outlook, cut back on fast food during the January-March period.

Industrywide traffic from consumers making $45,000 per year or less was down by double-digit percentages, he said, and traffic from middle-income consumers was down nearly as much. Only traffic from those making $100,000 or more remained solid, he said.

“We believe McDonald’s can weather these difficult conditions better than most,” Kempczinski said Thursday in a conference call with investors. “However, we’re not immune to the volatility in the industry or the pressures that our consumers are facing.”

McDonald’s rivals have reported similar downturns. Yum Brands, which owns the Taco Bell, KFC, Habit Burger & Grill and Pizza Hut brands, said Wednesday that its U.S. same-store sales fell 2% in the first quarter. Chipotle also reported weaker-than-expected same-store sales in the first quarter.

McDonald’s same-store sales fell 1% globally in the first quarter, as growing traffic in Japan, China and the Middle East failed to overcome weakness in markets like the U.K. Without the impact of the extra leap year day in 2024, same-store sales were flat, the company said. Wall Street had been expecting an increase of nearly 2%, according to analysts polled by FactSet.

The Chicago-based chain has responded by introducing a U.S. McValue menu, which lets customers buy one item for $1 when they buy a full-priced item. It also announced Thursday that its $5 Meal Deal will run through the rest of this year. That deal was introduced last June and extended several times.

Kempczinski said the $5 Meal Deal is resonating well with consumers but the McValue menu is not driving the additional sales the company expected, so McDonald’s may make changes to it.

Kempczinski said McDonald’s had expected the first quarter to be its weakest this year. Already, things are looking up.

In April, a McDonald’s meal tied to “A Minecraft Movie,” which was offered in 100 countries, sold out of its collectible figures in less than two weeks. New chicken strips and the U.S. return of the snack wrap — exected later this year — are also expected to drive traffic, Kempczinski said.

McDonald’s reaffirmed its financial targets for the full year despite the impact of tariffs. And Kempczinski said McDonald’s internal surveys show that anti-American sentiment, particularly in Canada and Northern Europe, doesn’t seem to be impacting how consumers feel about the McDonald’s brand.

McDonald’s shares were down 1% in morning trading Thursday.

McDonald’s first quarter revenue fell 3% to $5.95 billion, short of analysts’ forecast of $6.09 billion, according to FactSet.

Net income fell 3% to $1.86 billion. Adjusted for restructuring charges and other one-time items, the company earned $2.67 per share, beating Wall Street projections by a penny.