United, Teamsters draw up skycap deal ahead of $2 fee
One day before United Airlines begins charging a $2-per-bag fee for skycap services, the Teamsters union representing skycaps for United has reached a tentative agreement on new labor terms. It is subject to a ratification vote by members.
Until now, the skycaps have been getting paid $2.13 per hour, earning additional money in tips.
Today, United plans to start charging travelers at Denver International Airport $2 a bag for skycap services. Those services have traditionally been free, though travelers customarily tip skycaps for their help with luggage and flight check-in. Some passengers might tip less if they must also pay a fee.
Details of the tentative agreement were not disclosed. At issue is the protection of workers’ wage-earning power, said Matthew Fazakas, president and principal officer for Teamsters Local 961.
By adding the $2 fee, United has “eliminated a multimillion-dollar cost for skycap contracts,” said United spokesman Dave Dimmer. And, he said, “by allowing the vendors to charge that fee for the bag, these companies have a greater incentive to improve the service levels they provide to our customers.”
DENVER
Quixote seeks OK for new mutual fund
Denver-based hedge fund Quixote Capital Management LLC has filed with the Securities and Exchange Commission to launch a new mutual fund that will be available to the general public.
The QCM Absolute Return Fund will use arbitrage strategies in an effort to provide positive returns in rising and falling markets. The fund, expected to be available by year-end, represents a return to the mutual- fund world for Jerry Paul, who was named Morningstar’s fixed- income manager of the year in 1999 while at Invesco Funds Group. Paul will co-manage the fund with Troy Johnson.
DENVER
Teamsters approve pact with Safeway
The local Teamsters union has ratified a four-year labor agreement covering 350 employees in Safeway’s Denver distribution center.
The union continues to negotiate with a subcontractor in King Sooper’s perishable warehouse division. It has previously reached new labor agreements covering King Sooper’s transportation workers and employees in its nonperishable warehouse division. Contracts covering all four groups expired Sept. 17.
DENVER
Oakley adds Coors CEO to its board
Oakley Inc., a maker of sunglasses and clothing, announced Monday it has appointed Frits van Paasschen to the company’s board of directors. Van Paasschen is president and chief executive officer of Golden-based Coors Brewing Co., a subsidiary of Molson Coors Brewing Co.
GREENWOOD VILLAGE
Adelphia’s Aug. cash totaled $299 million
Greenwood Village-based Adelphia, which is being bought by Time Warner Inc. and Comcast Corp for $17.6 billion, had cash and equivalents of $299 million at the end of last month, according to regulatory filings. Adelphia filed for bankruptcy protection in June 2002.
DETROIT
Fitch lowers GM’s “junk” credit rating
Fitch Ratings lowered General Motors Corp.’s credit rating further into “junk” status Monday, saying the automaker has made little progress in reducing its high costs and is vulnerable if gas prices remain high.
Fitch first cut GM to junk, or high-risk, high-yield, status in May. The latest action, which applies to GM and finance arm General Motors Acceptance Corp., lowered the rating one more level to BB.
NEW YORK
MTV plans videos for mobile-phone users
Viacom Inc.’s MTV Networks will create and distribute music videos to mobile-phone customers under an agreement with Warner Music Group, the world’s fourth-largest record company.
The cable television network will produce short videos from Warner artists such as Green Day, the companies said in a statement. Short films also will be produced from MTV shows.
REDMOND, Wash.
Microsoft, Palm join on mobile phone
Microsoft Corp., the world’s largest software company, plans to increase investments in wireless technology after announcing it’s collaborating with Palm Inc. on a Treo mobile phone, chairman Bill Gates said.
“The mobile market is exploding,” Gates said Monday in an interview. “It’s a milestone for us. All of us want to have a pocket device to get Outlook e-mail.”
WASHINGTON
Justice Dept. to probe planned Maytag sale
The antitrust division of the Department of Justice will be investigating the proposed Whirlpool Corp. purchase of Maytag Corp., a department spokeswoman said Monday.
Such mergers must be investigated and approved by either the Department of Justice or the Federal Trade Commission. Which one takes on a case usually depends on which has the most experience with the industry in question.
NEW YORK
More merchants join credit-card fee battle
Four of the nation’s largest merchant associations have joined the legal battle to force credit-card issuers to lower the fees they charge for processing transactions.
The class-action suit accuses Visa USA, MasterCard Inc. and a number of major banks, including Citigroup Inc., Bank of America Corp. and JPMorgan Chase and Co., of colluding to set their interchange fees.
SHANGHAI, China
Economic-expansion forecast for China up
China’s economy is expected to expand 9.2 percent this year, up from an initial estimate of 9 percent, the nation’s central bank said Monday.
However, growth in China’s gross domestic product is expected to slow slightly to 8.7 percent in the first half of 2006 from the same period in 2005, the research bureau of the People’s Bank of China said in a report.
WASHINGTON
Treasury auctions $32 billion in bills
The Treasury Department auctioned $17 billion in three-month bills at a discount rate of 3.44 percent and an additional $15 billion in six-month bills at a rate of 3.745 percent.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the price for a three-month bill was $9,913.04, while a six-month bill sold for $9,810.67.
