---

[ FAST FACTS HAWAII ]

---

BACK TO TOP
|

Labor Department settles with Enron

WASHINGTON >> Enron employees whose retirement plans vanished when the company imploded may be getting some compensation after all, thanks to a settlement announced yesterday by the government.

The U.S. Labor Department, which sued Enron in 2003 on behalf of the company's employees, said about $356 million will be set aside out of proceeds from the sale of Enron's assets to cover some of the lost retirement and pension plan benefits.

"This agreement makes possible a significant recovery for Enron retirees and their families," Labor Secretary Elaine Chao said.

The settlement resolves the lawsuit, which alleged Enron mismanaged its retirement and pension plans by relying on its stocks to support them and did nothing to protect workers from losses, according to a Labor Department statement.

The Labor Department said the agreement is subject to approval from the New York Bankruptcy and Texas district courts.

Alaska Air pilots reject contract

Alaska Airlines' pilots rejected a proposed contract that would have reduced their health care and retirement benefits while easing an average 26 percent pay cut imposed by an arbitrator.

The carrier's Air Line Pilots Association said in a statement on its Web site that 90 percent of members who cast ballots voted against the five-year tentative agreement, which would have reduced pay by 20 percent for all pilots. Of the union's 1,500 members, 95 percent voted.

The vote results show that members value benefits more than "a little extra money in their pockets right now," the union said.

The existing two-year agreement will remain in place as a result of the vote, providing the company with $90 million in annual savings, the union said. The Seattle-based airline said in a statement that the savings will allow the airline to be competitive and grow.

Morgan Stanley honcho resigns

NEW YORK » Stephen Crawford, who ended up on the losing side in the battle for control of Morgan Stanley, is walking away with a $32 million severance payment after resigning as co-president of the brokerage firm.

The iconic Wall Street investment bank said yesterday that Crawford was resigning "to pursue other interests," and that co-President Zoe Cruz would serve as acting president of the company.

Crawford and Cruz were named co-presidents in March under former Chairman and Chief Executive Phil Purcell, who announced his retirement in June under pressure from investors and the firm's board for his leadership style and management. Their appointments in late March set off the first of a stream of high-level departures from the company, which made Crawford's exit no surprise.

Avastin gives Genentech a boost

Genentech Inc., the world's second-biggest biotechnology company, said quarterly profit jumped 73 percent as doctors prescribed more of the company's Avastin cancer drug.

Second-quarter net income climbed to $296.2 million, or 27 cents a share, from $170.8 million, or 16 cents, a year earlier, the South San Francisco, Calif.-based company said yesterday. Revenue rose 35 percent to $1.53 billion.

U.S. Avastin sales climbed 85 percent to $245.7 million, Genentech said. Studies released this year show that Avastin, introduced in 2004 for colon cancer, also fights breast and lung tumors.