Dockworkers approve cutting costs to keep cargo coming to port
In an unprecedented move, dockworkers at the port of Baltimore voted overwhelmingly last night to cut their labor costs to retain cargo shipments that were otherwise certain to shift to Philadelphia.
The historic meeting at the International Longshoremen's Association hiring hall in Highlandtown was called because William Schonowski, president of ILA Local 333, agreed to reduce the size of work gangs scheduled to unload a major shipment of steel due here next week from Belgium.
Mr. Schonowski, who was authorized to make the initial decision without consulting the ILA membership, sought support last night from the 1,200-member union for cost-cutting deals in the future for general cargo handled at the North Locust Point terminal. The vote -- the union's first concession ever before a contract expired -- came after less than an hour of discussion.
Columbia Gas to move its headquarters
Columbia Gas System Inc. said yesterday that it will move its headquarters from Wilmington, Del., to temporary quarters in Reston, Va., in August while it seeks a permanent site in northern Virginia, and it will shift 150 workers from its pipeline subsidiary in Charleston, W.Va., in 1997.
The moves are part of a reorganization aimed at streamlining operations as Columbia Gas and its pipeline unit, Columbia Gas Transmission Corp., emerge from Chapter 11 bankruptcy protection from creditors.
Columbia Gas Transmission has 1,000 jobs in Charleston and 1,600 statewide in West Virginia.
Travelers Group board OKs common-share buyback
Travelers Group Inc.'s board yesterday approved the repurchase of up to $600 million of its common shares for distribution in employee stock option and benefit plans.
The repurchases reflect the company's "strong capital position and financial flexibility," said Travelers Group Chairman Sanford Weill.
Travelers Group is the parent of Baltimore-based Commercial Credit Corp.
Shareholder group wants Kmart to eye sale or merger
A Kmart Corp. shareholders' group made up of labor union members said yesterday that it wants the struggling discount retailer to explore a sale or merger of the company.
The Kmart Independent Shareholders' Committee, which represents ownership of about 520,000 Kmart shares, made the proposal in a preliminary proxy statement filed with the Securities and Exchange Commission. The group plans to solicit shareholders' votes for its proposals at Kmart's annual meeting May 21.
The group, formed by the Union of Needletrades, Industrial and Textile Employees and the International Brotherhood of Teamsters, also proposed the appointment of Stephen Hester, a Bethesda lawyer and investment banker, to the Kmart board of directors.
Northrop Grumman says it will lay off 2,100 in Calif.
Northrop Grumman Corp. says it will lay off 2,100 people from its military aircraft division in Southern California, most of them by July 1.
The defense contractor, which currently employs about 12,500 people in the region, cited declining work on its two major aircraft programs, the B-2 Stealth bomber and Super Hornet fighters.
The 2,100 layoffs would affect about 850 people at its El Segundo and Hawthorne facilities, 675 in Pico Rivera and 575 in Antelope Valley, all in the Los Angeles area. Since the beginning of the year, 400 people have been laid off.
Apple to post loss of $700 million in quarter
Apple Computer Inc. said yesterday that it will post a loss of about $700 million for its second quarter as the troubled computer maker struggles to remedy inventory problems and ebbing demand.
The loss from operations will be about $200 million. The remaining $500 million covers charges for writing down excess inventory and firing at least 1,300 workers under the strategy by new Chief Executive Gilbert Amelio to get Apple back on its feet. Mr. Amelio called the charges "critical steps" in Apple's comeback.
"I can't say it looks like they're in good shape but at least the bleeding will stop," said analyst Stephen Dube of Wasserstein Perella Securities.
Prudential settlement may be less than estimate
Prudential Insurance Co. of America may pay less than the highest analyst estimates of $500 million to resolve charges it misled customers in at least 28 states.
State regulators said a framework based on a $250 million agreement used by New York Life Insurance Co. is being developed to settle charges that Prudential lured customers into replacing their policies at added cost -- a practice known as churning.
The New York Life settlement, which the company said may eventually reduce its earnings by about $65 million, calls for giving almost 3 million eligible customers low-interest loans, life insurance and annuities. A task force plans to recommend a Prudential settlement by June.
Probe of drug companies examines pricing practices
The government is investigating whether big drug companies have conspired to charge higher prices of independent pharmacies -- a case industry analysts say will be difficult to prove.
The Federal Trade Commission does not comment on its investigations. But drug company spokesmen confirmed yesterday that they had been contacted by the agency. They also denied conspiring to fix drug prices.
Among the companies being investigated are Merck & Co., American Home Products Corp., Eli Lilly & Co., Glaxo Wellcome PLC, Johnson & Johnson, Pfizer Inc., and Sandoz Ltd.
U.S., Japan to expand air-cargo services
The United States and Japan agreed yesterday to expand air-cargo services by airlines of both countries in the lucrative trans-Pacific market.
The arrangement, expected to be formally concluded in mid-April, falls short of an open-skies agreement sought by the United States. But the White House said both nations will get increased flexibility to serve the U.S., Japanese and Asian air-cargo markets.
"What this means in practical terms is more flying by cargo carriers on both sides," said Daniel Turullo, assistant secretary of state for economics and business.
CompUSA's quarterly sales hit $1 billion
Computer retailer CompUSA Inc.'s quarterly sales hit the $1 billion mark for the first time and company officials said yesterday that they see no evidence of a much-trumpeted slowdown in personal computer sales.
The Dallas-based chain said its net sales for the fiscal third quarter ended March 23 jumped 29 percent to $1.0 billion from $776 million in the same period last year.
Chief Executive Officer James Halpin said the figures contradict conventional wisdom that the personal computer market will dip in the months ahead.
Ford says Feb. exports were a record 13,597 autos
Ford Motor Co. said yesterday that it exported 13,597 North American-built vehicles in February, a record. The previous monthly high was 12,141 units, reached in April 1994.
For all of 1995, Ford said it exported 251,181 cars and trucks from all manufacturing sites around the world, a 30 percent increase over 1994.
Pepsi to launch promotions to fight Coke's Olympic blitz
Pepsi-Cola Co., faced with the prospect of a Coca-Cola blitz during the summer Olympic Games, launched a slick $140 million give-away campaign yesterday aimed at creating loyal Pepsi drinkers.
Copying an enduring marketing gimmick more recently used by Marlboro cigarettes, Pepsi will give customers T-shirts, baseball caps, sunglasses and other freebies if they turn in enough proofs-of-purchase.
Pub Date: 3/28/96