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United takes first step to void union contracts
United Airlines asked a federal bankruptcy court judge yesterday to begin a process that would allow the company to void its contracts with its unions if they do not agree to deep cost cuts.But United also said it would delay its request until March 15 if the unions agreed by Jan. 8 to interim cuts that would equal $70 million a month in concessions. Those cuts would remain in effect until United reached a long-term agreement on $2.4 billion in annual concessions from the unions, or until United restarted the process of voiding its union contracts.
The airline has reached understandings with negotiators from four of its five unions on the terms of the interim concessions, which are contingent on the approval of their leaders and membership. But the International Association of Machinists has refused to agree to the terms, and United is asking the court to order it to comply.
In the filing, United, a unit of the UAL Corp., said that to return to financial health, it needed to cut costs by $2.4 billion a year from 2003 to 2008. It also said it needed to void terms in its contracts that restrict its ability to use regional jets and to start a low-cost carrier.
Continental mechanics OK deal
HOUSTON >>Continental Airlines, the fifth-largest U.S. air carrier, said yesterday its mechanics ratified a four-year labor contract that raises the pay of top-level mechanics by 23 percent.The agreement, which affects 3,300 mechanics and related employees, raises the pay of top level mechanics, which make up a majority of the group, to $33 per hour, according to a company spokesperson. The company has a total of 48,000 employees.
Gold rises as global tensions build
New York >> Gold prices rose for the 11th time in 12 sessions, extending a five-year high, as tensions over North Korea's nuclear program increased the metal's allure as a haven.North Korea's decision to expel United Nations nuclear-plant inspectors boosted demand for gold as a safe haven in case of military conflict, traders said. Gold prices have climbed 10 percent this month, largely on prospects of a U.S-led attack against Iraq, a weakening dollar and lower stock prices.
The Handy & Harman gold price in New york jumped $4.50 to $349.30.
Prices may rise another $10 to $15 an ounce by year's end as hedge funds boost purchases, analysts said.
Gene sequencer to cut 500 jobs
FOSTER CITY, Calif. >> Applied Biosystems Group, the No. 1 maker of gene sequencing machines that helped decipher the genomes of mice and men, and scores of other animals, plants and microbes said yesterday it will lay off 9 percent of its work force.Expecting many sources of research funding to be canceled or delayed next year, including anticipated federal government grants, the Foster City-based company said it would cut 400 regular jobs and 100 contract and temporary positions beginning next month.
Trump to sell casino debt in 2003
New York >> Donald Trump said his Trump Hotels & Casino Resorts Inc. plans to sell debt early next year after reporting its biggest quarterly profit in six years and interest rates fell.Trump Hotels applied to the New Jersey Casino Control Commission for approval to sell up to $470 million of mortgage notes maturing in 2011, according to Bloomberg News. The company attempted to sell the same amount of bonds rated below investment grade in May, and canceled the sale when the yield investors demanded got too high, at about 13 percent.
