As the African American unemployment rate hovers significantly higher than that of whites, a study released by the Economic Policy Institute (EPI) indicates a reversal of fortune when it comes to economic gains made by African Americans in the early 2000s.

From the first quarter of 2007 to the first quarter of 2009, black workers 25 to 54 years old experienced a 3.7% decline, or a $23 drop, in median weekly wages. Conversely, whites and Latinos experienced increases, with Asians seeing the largest gains, 5.5%, in median weekly wages over the same period.

“One factor that’s probably at work is a significant decline in the amount of hours blacks are working,” says Algernon Austin, a sociologist at the EPI who conducted the research. Austin says that while all racial groups may experience a reduction in hours worked, blacks may be affected disproportionately. “Across many industries we see job losses, and across all education levels we see high rates of job losses. Even blacks who are relatively high earners are probably seeing a reduction in the number of hours worked.”

The decline in wages and ultimately wealth does not bode well as blacks seek to grapple with consequences of the current recession. Jobs and wage losses are leading causes of poverty which can impact communities for generations.

“Children who are raised in poverty are more likely to do poorly in school and more likely to be involved in crime,” Austin says. “Over the long run they’re much less productive in society as a whole.”

While there is no quick fix, Austin says a rapid creation of jobs is likely to help reverse the trend. “If we can reverse the unemployment trend rapidly for blacks, there’s a chance you would also reverse the wage trend.”

– Renita Burns

McDonald’s Honors Exemplary Leaders at 365Black Awards

Graves

Among the honorees were Black Enterprise publisher Earl G. Graves Sr.; CNN journalist Soledad O’Brien; NBA veteran and philanthropist Alonzo Mourning; House Majority Whip and Congressman James E. Clyburn (D-S.C.); and McDonald’s owner and operator, Frank E. Mason.

“This year’s McDonald’s 365Black Awards recipients are revolutionizing what it means to be a leader in America. They are accomplished people of tremendous influence, committed to community service, and they have a vision that transcends this current generation,” said Neil Golden, senior vice president and chief marketing officer at McDonald’s USA. “They inspire all of us with their leadership in areas that touch our lives.”

Celebrities and dignitaries from across the country joined event’s host Tom Joyner, nationally syndicated radio personality and one of the first recipients of the 365Black Award, to recognize the accomplishments of the honorees.

The 365Black Awards were launched in 2002 and are part of McDonald’s 365Black initiative, created to celebrate the pride, heritage, and achievements of African Americans. McDonald’s outreach under the 365Black platform includes its Website, as well as partnerships with organizations that provide opportunities for African Americans’ success.

–Janell Hazelwood

The United Negro College Fund and drug company Merck & Co. announced fellowship and scholarship awards that will be offered African American science students.

UNCF/Merck Initiative Awards More Fellowships, Scholarships

Taking a significant step to help increase the number of African Americans represented in the science, technology, engineering, and mathematics fields, the United Negro College Fund and pharmaceutical company Merck & Co. announced 37 fellowship and scholarship awards that will be offered African American science students.

Under the UNCF/Merck Science Initiative, 2009 fellows may receive awards ranging up to $25,000 for undergraduate scholarship recipients and up to $85,000 for post doctoral fellowships. The program also includes funding for the science departments at the fellows’ colleges and universities.

“What the Merck program demonstrates is that when a long-term investment is made and when an innovative program pursues young people vigorously,” said Michael L. Lomax, UNCF president and chief executive. “The results are remarkable.”

Minority and low-income students remain significantly underrepresented in science, technology, engineering and mathematics–the STEM fields of study. Merck awarded UNCF a 10-year, $20 million grant in 1995, targeting students pursuing careers in biomedical research at the undergraduate, graduate, and postdoctoral levels. The initiative was renewed in 2006 to provide more than $13 million in additional funding through 2010.

The 15-year partnership has helped 516 minority students pursue careers in a wide range of disciplines, from biochemistry and microbiology, to pharmacology, neuroscience, biophysics, chemistry, and bioengineering.

“The experience in general was priceless. It was a critical component of my graduate studies,” says Marcus Jones, a 2003 graduate fellow in microbiology, who received his undergraduate degree from Southern University, an HBCU in Baton Rouge, Louisiana. “It made me a higher caliber graduate student because I had my own funding and could control my research more by doing experiments I normally wouldn’t be able to do.”

Undergraduate fellows receive summer research internships at Merck Research Laboratories, where each fellow is paired with a mentor. Life and physical science students at all four-year colleges and universities in the U.S. are eligible to apply for the scholarship.

–Marcia A. Wade

PRWT Services Inc.

In the transaction, valued at $140.2 million, KBL will merge into a newly formed, wholly owned subsidiary of PRWT. PRWT will then be recapitalized and all outstanding common stock and warrants of KBL will automatically convert into the same number of securities of PRWT. As a result, PRWT’s African American shareholders will retain their majority stake, with former shareholders of KBL and public investors holding a minority interest.

The deal includes the assumption of up to $45 million of PRWT’s net debt. “There’s several rationales [for the transaction], one of which was an infusion of capital,” explains Jerry Johnson, PRWT’s vice chairman. “It also allows us to maintain our existing management team, maintain control of the corporation, and maintain control of our strategy. In this environment it is almost a perfect vehicle for us.”

The merger is expected to close in the third quarter of 2009, and PRWT’s shares are sought to be listed on the New York Stock Exchange or NASDAQ. In January 2008, the company acquired the Cherokee chemical manufacturing plant in Riverside, Pennsylvania from Merck & Co. of Whitehouse Station, New Jersey. The deal included a five-year supply agreement with Merck for an estimated value of $100 million to $200 million annually.

KBL Healthcare Acquisition is a special purpose acquisition company (SPAC). Essentially, it’s a shell company formed to effect either a merger, capital stock exchange, stock purchase, asset acquisition, or combine with an operating business in the healthcare industry.

Investors purchase shares of the SPAC and ideally, receive a return on that investment when the shell acquires or combines with the actually operating company or assets. “It’s a form of a reverse merger, only you’re not merging with a going entity, you’re merging with a financial entity,” Johnson says. “We become the operating entity going into that. And what is different with this is because it is important for us to retain our minority ownership, control, and operations — we become the surviving entity.”