Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law,americast.usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Mon, Sep 21 1992 Date: Mon, 21 Sep 92 04:39:57 EDT Message-ID: 09-21 0000 DECISIONLINE: Business Law USA TODAY Update Sept. 21, 1992 Source: USA TODAY:Gannett National Information Network GLOBE WORKERS TURN DOWN OFFER: Boston Globe employees, without a labor contract for 21 months, have voted overwhelmingly to reject the newspaper's latest contract offer. The Boston Globe Employees Association - representing 1,100 editorial, advertising, clerical, maintenance and security workers -rejected the Globe's three-year offer Thursday 817-57. The Globe calls the proposal its final offer. UNION IS OFFERED 9% RAISE: The Boston Globe says what it's calling its final offer in a contract dispute with employees would boost salaries 9%, raise company health-care contributions 50% and give most union employees lifetime job security. The workers' union, in rejecting the offer, has said it contained too many concessions. It also contains "punitive" sick leave and workers' compensation, the union says. FOOD LION SUES EMPLOYEE, ABC: Food Lion Inc. said Friday that it filed suit against Capital Cities:ABC Inc. and an employee who the company said concocted stories about the company while working there. ABC's "Prime Time Live" is pursuing a TV news investigation of Food Lion. The supermarket company says Lynne Litt lied on her application to get the job and then did `'deceitful and illegal activities." STORE SAYS WORKER USED CAMERA: Food Lion Inc. said in a lawsuit filed Friday that employee Lynne Litt didn't do her job properly, which gave her a chance to make up stories about the store where she worked. The company said Litt used hidden cameras and microphones to gather information to be used for ABC's "Prime Time Live," which said it will pursue its investigation despite the suit, which names Litt and ABC. DOT DENIES HEARING REQUEST: Delta Air Lines Inc. said on Friday that the Department of Transportation has denied its petition to hold a public hearing on the proposed business partnership between USAir Corp. and British Airways PLC. Delta on Thursday asked for proceedings to hear testimony on the proposal, which is controversial but within the legal limits. BA would acquire 44% of USAir's equity in the deal. PLYMOUTH BANK CLOSED: Massachusetts regulators Friday closed Plymouth Five Cent Savings Bank over continuing operating losses and high levels of bad loans. The bank lost $26.6 million between 1990 and 1991. The Federal Deposit Insurance Corp. was named receiver for the thrift holding company and approved the sale of Plymouth's operations to Citizens Bank of Massachusetts. O&Y PAYMENT PLAN APPROVED: A judge in Ontario, Canada, Friday approved a plan for Olympia & York Developments Ltd. to pay for its operation costs until the company's bankruptcy protection expires Dec. 30. Part of the company's operating and creditor committee costs will come from management fees for the buildings that creditors have for securities; some from marketable securities lenders. SIERRA WINS HAYES INJUNCTION: A federal district judge in California has granted a preliminary injunction to Sierra Semiconductor keeping Hayes Microcomputer Products Inc. from advertising that the Sierra TIES modem has a serious reliability problem that could cause data to be destroyed or erased. The order said that Hayes could not cite any such instance and CEO Dennis Hayes testified he had not seen any. MULTITECH GAINS INJUNCTION: A federal district judge in Minnesota has issued an injunction in favor of Multitech Systems similar to an injunction against Hayes Micrcomputer Products Inc. in California. The injunction keeps Hayes from issuing test kits touted in ads. The ads warn of a "fatal flaw" that could exist in non-Hayes modems and offer test kits to uncover the "flaw." PLACER DOME, ROYAL GOLD SETTLE: Placer Dome Inc. and Royal Gold Inc. said Friday the lawsuit between their two U.S. subsidiaries has been settled and an agreement has been reached for continued work on a gold discovery in Nevada, according to Bloomberg Business News. Royal Crescent Valley claimed the Placer subsidiary withheld information when it bought Royal's 20% share of a Nevada gold-mining venture. EASTERN WORKERS TO GET PAYMENTS: More than 14,000 former Eastern Airlines employees are expected to get severance payments of several thousand dollars apiece under a deal negotiated by a union, the company and creditors. About $97.5 million would be split among the workers employed by Miami-based Eastern when it closed on Jan. 18, 1991. The deal was negotiated over the past year. PHAR-MOR TO CLOSE STORES: Phar-Mor Inc. announced Friday that 63 stores in 14 states will be closed in an effort to restore the discount drug store chain to profitability. Phar-Mor filed for Chapter 11 bankruptcy protection in August, just days after firing co-founder Michael Monus and former chief financial officer Patrick Finn. BUSH TO SIGN FREE TRADE PACT: President Bush Friday formally notified Congress that he intends to sign the free trade agreement just negotiated with Mexico and Canada, starting the clock ticking for congressional consideration of the pact. The trade treaty, concluded Aug. 12, would eliminate over 15 years any tariffs and other barriers to the flow of goods, services and investment among the three nations. Business Law Editor: Beth Mann. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM