Business Briefs
Reported by Star-Bulletin staff & wire

Wednesday, June 6, 2001

Japan-based restaurant to close another location

Kyotaru Restaurant in Waimalu will close its doors July 31, leaving 63 employees without work. The plant closing notice was received this morning by the state Department of Labor and Industrial Relations.

The Kaahumanu Street eatery and three sister-restaurants in Hawaii were placed on the market last year by order of the Tokyo bankruptcy court, where Kyotaru's parent company is based.

The first of the company's properties to sell was the former Columbia Inn Restaurant on Kapiolani Boulevard. It had been purchased by Servco Pacific Inc. in November and was closed in January of this year. Employees from that restaurant were offered employment at Columbia Inn Kaimuki, which is also up for sale.

Kyotaru Restaurant in Waikiki also closed in January.

Ex-leader Rutledge joins race for head of Local 5

Tony Rutledge, former leader of the Hotel Employees and Restaurant Employees Local 5, said yesterday he is seeking his old job back.

Rutledge lost the top job in April 2000 when he was narrowly defeated by Eric Gill. Rutledge had held the position of financial secretary-treasurer for 14 years prior to the election.

But after months of infighting between Gill and other board members as well as stalled hotel contract negotiations, Local 5 was placed under trusteeship by the Hotel Employees & Restaurant Employees International Union.

Gill announced last week he will also seek the position of financial secretary-treasurer of Local 5.

Election ballots will be mailed out June 14 to Local 5's 11,000 members. More than 90 percent of Local 5's contracts are up for negotiation over the next 10 months. In the past, Rutledge has said that his years of previous experience in the position make him the best choice for the job.

Newport board backs General Dynamics bid

NORFOLK, Va. >> The board of directors of Newport News Shipbuilding Inc. voted to support General Dynamics Corp.'s $2.1 billion acquisition offer but took no position on a similar counter bid by Northrop Grumman, the Navy shipbuilder said today.

The board unanimously reaffirmed its recommendation of the General Dynamics offer of $67.50 per share in cash for all outstanding shares of Newport News common stock, the company said. The board thinks the General Dynamics offer provides better and more certain value for Newport News stockholders, the company said.

Struggling Lucent offers to buy out 10,000 workers

TRENTON, N.J. >> Struggling telecommunications giant Lucent Technologies Inc. is offering voluntary buyouts to more than 10,000 U.S. employees.

The employees targeted for the offer -- mostly middle-level managers but also some nonunion clerical workers -- were being notified today, said Bill Price, a spokesman for Murray Hill-based Lucent. All the employees are either eligible or nearly eligible for a pension.

Price said top executives were not eligible because the company needs their talent to execute restructuring outlined by chief executive officer Henry B. Schacht in January.

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