BUSINESS BRIEFING
BUSINESS BRIEFING
Tuesday, January 17, 2006; Page D02
LABOR
Wal-Mart Bill in W.Va. Legislature
West Virginia lawmakers are following Maryland's lead with a bipartisan bill that would make Wal-Mart Stores pay more for its workers' health care costs. The West Virginia Fair Share Health Care Act would require any private employer with 10,000 or more workers in the state to spend at least 8 percent of its wages for health care costs. With 12,054 employees at 35 locations across West Virginia, only Wal-Mart appears to fall under the bill's provisions. Lawmakers in neighboring Kentucky, where Wal-Mart has more than 32,000 employees, also introduced a version of the bill last week.
Alcoa Cuts New-Worker Pension
  Mario Draghi took over after the previous bank chief resigned. (Ho - Reuters) |
Alcoa will eliminate its pension plan for new U.S. workers starting on March 1, offering them a 401(k) retirement savings plan instead. The change will not affect current employees or retirees, the aluminum manufacturer said. Under the new plan, Alcoa will contribute 3 percent of an employee's salary and bonus to the retirement plan and will match the first 6 percent that an employee contributes.
BANKING
Italy's New Bank Chief Starts
Mario Draghi took over as governor of the Bank of Italy, hoping to restore confidence after a takeover scandal tarnished the central bank's reputation. Draghi was appointed by Prime Minister Silvio Berlusconi's government last month after the scandal forced the previous governor, Antonio Fazio, to resign. Analysts expect Draghi to be less hostile than his predecessor to foreign banks' attempts to enter the country's banking system. Fazio was accused of improperly favoring Italian banks over their foreign competitors in takeover battles and is under investigation on suspicion of abuse of power and insider trading.
RETAIL
Sales to Grow at Modest Pace
The National Retail Federation predicts sales to increase a modest 4.7 percent this year, much less than the 6.1 percent gain in 2005. The lower forecast stems from higher energy prices, an uncertain labor market and a slowdown in the housing market. The group said first-quarter retail sales would increase 5 percent compared with the same period a year ago.
Penney's Expands Private Labels
J.C. Penney is adding to its private-label brands in clothing and furniture. Penney's, seeking to attract more middle-income shoppers, plans to introduce a line of casual men's clothing called Solitude to 500 stores next month. Penney's also plans to add a modern furniture collection called Studio this spring.
RESTAURANTS
McDonald's Plans New Sandwich
McDonald's announced it will begin selling a premium spicy-chicken sandwich in February and an Asian salad in May. Both are aimed at consumers willing to pay more for healthier foods.
TELEVISION
Dish Network Adds Oxygen
EchoStar Communications added Oxygen Media's cable channel for women to its Dish Network after it took Lifetime Entertainment's rival channels off the system on Jan. 1. The 24-hour channel co-founded by Oprah Winfrey will be available for a 30-day free preview to EchoStar's 12 million subscribers. Oxygen would reach 65 million subscribers because of the deal.
TRADE
E.U. Outlines WTO Strategy
Europe's trading partners were not ready to take the hard decisions needed to make a breakthrough at world trade talks in Hong Kong last month, E.U. Trade Commissioner Peter Mandelson said. He told the European Parliament that the E.U. must be "firm and reasonable" in further negotiations and needs to talk directly with countries and regions to make clear what it wants out of World Trade Organization talks.
ENERGY
Unrest Sends Brent Crude Higher
Crude oil neared a three-month high in London as rebel attacks on oil equipment escalated in Nigeria and diplomats worked on a timetable to refer Iran to the United Nations over its refusal to abandon nuclear research. Brent crude oil for February rose as much as 92 cents, to $63.18 a barrel, on London's ICE Futures exchange. Oil prices reached a record $68.89 in August, after Hurricane Katrina struck the United States.
Compiled from staff and news service reports.
