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Subject: law Tue, Sep 8 1992
Date: Tue, 8 Sep 92 04:30:16 EDT
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09-08 0000
DECISIONLINE: Business Law
USA TODAY Update
Sept. 8, 1992
Source: USA TODAY:Gannett National Information Network
    
GM STRIKE COMES TO AN END:
   General Motors hopes to restart production of its popular 
Saturn small car Tuesday after the resolution Saturday of a 
nine-day strike at a stamping plant in Lordstown, Ohio. Other 
plants affected by the strike might take a week to return to 
normal. A spokeswoman says GM wants to get plants running as soon 
as possible. "There are car sales we're missing," says Linda Cook.
(For more, please see special GM package below.)
    
SFPP FACES LAWSUITS:
   Santa Fe Pacific Pipeline Partners, L.P. announced Friday that 
Navajo Refining Co. and El Paso Refinery, L.P. have filed suits 
against SFPP in New Mexico and Texas, respectively. Both suits 
seek damages resulting from SFPP's alleged failure to provide 
additional pipeline capacity to Phoenix and Tucson, Ariz., from El 
Paso, Texas.
    
SUITS FILED AGAINST HOUSTON L&P:
   Two class-action lawsuits were filed Friday in Houston seeking 
more than $245 million in damages from Houston Lighting & Power 
Co. for employees fired by the utility in April. The suits were 
filed against HL&P and 13 other defendants on behalf of nearly a 
thousand former workers. One suit filed in federal court claims 
lack of proper notice. The suit in state court claims breach of 
contract.
    
FIRST WARNING WAS IN OCTOBER:
   The basis of a suit filed in federal court Friday against 
Houston Lighting & Power Co. claimed lack of proper notice before 
the utility fired employees in April. The utility said in April it 
would lay off about 10% of its workforce as part of a 
"pre-emptive" strike to contain operating costs. The company 
notified workers last October it was undertaking the wide-ranging 
program.
    
MCDONNELL REFUTES REPORT:
   McDonnell Douglas Friday refuted a report from Aviation Week 
that the Pentagon has told McDonnell Douglas to "cease its 
strident lobbying campaign for the sale" of 72 F-15s to Saudi 
Arabia. McDonnell denied a quote attributed to an unnamed 
McDonnell official, saying the company was being "threatened and 
muzzled by the administration."
    
PLANS CAN BE DISCLOSED:
   A federal bankruptcy judge on Friday approved disclosure 
statements for competing plans to reorganize National Gypsum Co. 
and its privately held parent, Aancor Holdings Inc. Judge Steven 
Felsenthal approved the statements, which reveal debtors' 
financial background to creditors, for a reorganization plan 
proposed by management and one proposed by a committee.
    
IBERIA WINS DOT RULING:
   The Department of Transportation Friday decided in favor of 
Iberia Airlines in a filing American Airlines made against the 
Spanish carrier. American wanted a permit revoked that allows 
Iberia to operate scheduled service to points in Latin America and 
the Caribbean from the USA. Iberia is the only foreign airline to 
have the rights through a 1991 bilateral agreement.
    
USA, NETHERLANDS OK OPEN SKIES:
   The USA and the Netherlands Friday signed an agreement opening 
their international aviation markets to each other's airlines, the 
Department of Transportation said Friday. The move should benefit 
major U.S. airlines, including Northwest and KLM Royal Dutch 
Airlines. KLM and Northwest have been linked since 1989, when KLM 
provided funding for an acquisition.
    
L.A. GEAR TO TAKE CHARGE:
   L.A. Gear Inc. said Friday it will take a $13.87 million charge 
for the settlement of suits filed by shareholders against the 
company's former management. The charge will be taken against 
results for the quarter ended May 31. The suits alleged the 
company made false and misleading statements to the Securities and 
Exchange Commission.
    
SPECIAL PACKAGE ON GM:
    
STRIKE AFFECTED NINE PLANTS:
   The strike by 2,400 members of United Auto Workers Local 1714 
slowed or stopped production at nine General Motors plants, idling 
about 43,000 workers. Parts for 14 GM models are made at 
Lordstown. The nine-day strike was resolved on Saturday. The 
strike shut assembly plants as quickly as it did because, to cut 
costs, few parts are stockpiled.
    
FALL SEASON STARTING UP:
   General Motors is eager to get back in the groove after the 
strike. GM and other automakers kick off ads soon for 1993 models. 
If GM doesn't have enough cars to sell, ad dollars will be wasted. 
Worse, customers attracted by the ads for '93s might buy another 
brand.
    
STRIKE WAS WIDE-RANGING:
   In addition to the Saturn factory in Spring Hill, Tenn., the 
strike hit plants in Baltimore; Wilmington, Del.; Oklahoma City; 
Wentzville, Mo.; Flint, Orion Township and Lansing, Mich.; and one 
adjacent to the parts plant in Lordstown. Analysts worry that the 
settlement might limit GM's ability to make needed cuts. 
(End of package.)
    
Business Law Editor: Beth Mann. (919-855-3491) Making copies of 
USA TODAY Update (Copyright, 1992) for further distribution 
violates federal law.
    

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