UAW Objects to Delphi Bonuses
The United Auto Workers asked a bankruptcy court judge to reject Delphi's plan to reward top executives with cash bonuses and stock options if the auto supplier emerges from bankruptcy protection.
"At a time when Delphi is proposing deep cuts in wages and benefits and contemplating a severe contraction of its domestic operations . . . deep resentment and anger over a program valued at over $500 million can neither be understated nor should it be ignored," the UAW said in a U.S. Bankruptcy Court filing. On the day before Delphi filed for bankruptcy protection in October, it said it was boosting severance packages for 21 top executives.
Judge Robert Drain was expected to consider the issue at a hearing Nov. 29, but Delphi asked that to be delayed so it could have more time to consider the objections. The new hearing is set for Jan. 5.
Review Calls NYSE Deal 'Fair'
The New York Stock Exchange's proposed purchase of Archipelago Holdings is "fair," according to an evaluation by Citigroup that was requested to settle a lawsuit that sought to block the transaction. The suit, filed by 10 dissident members in May, argued that the exchange negotiated the deal with conflicted advice from Goldman Sachs Group and was overpaying by ceding 30 percent of the combined company to Archipelago.
Jobless Claims Rise Sharply
The number of new people signing up for jobless benefits last week rose sharply, suggesting that the labor market is still trying to gain traction after being knocked by a trio of Gulf Coast hurricanes. The Labor Department reported that new applications for unemployment insurance jumped by a seasonally adjusted 30,000, to 335,000, for the week ending Nov. 19.
In the prior week, new filings for jobless benefits registered a large decline. Last week's increase left claims at their highest point since the middle of October. Economists were expecting claims to total around 312,000.
US Airways Issues Cautionary Note
US Airways warned it may not perform as expected as it emerges from bankruptcy protection. US Airways was acquired by America West in September as part of its strategy to emerge from more than two years of Chapter 11 bankruptcy protection.
The combined company, which retained the US Airways name, had expected about $600 million in operating cost savings and revenue synergies but in a Securities and Exchange Commission filing said it "cannot assure" the synergies will be realized. The company said its significant operating losses have not subsided and are likely to continue into 2006.
Oversight Board Bars 2 Firms
The board created to police U.S. auditors, the Public Company Accounting Oversight Board, said it barred two firms from further accounting work because they violated federal standards and rules. The board reached settlements with Kenny H. Lee CPA Group of Los Angeles and Clyde Bailey P.C. of San Antonio. Neither firm admitted or denied the allegations.
The disciplinary actions were the second and third by the board, which was created in 2002 and spent much of its first two years setting rules for auditors.
Savvis CEO Resigns
Savvis said chairman and chief executive Robert McCormick has resigned a month after Savvis and the executive were sued by American Express over a $241,000 corporate credit card bill.
Last month, Savvis put McCormick on unpaid leave while it investigated the nonpayment of charges stemming from a 2003 visit by McCormick to Scores, a Manhattan gentlemen's club. Savvis said in October that McCormick did not submit the charges in question for reimbursement and that Savvis has not made any payment to American Express related to the charges. McCormick refused to pay the charges, alleging that Scores inflated the bill fraudulently.
Jack Finlayson will remain acting chief executive. Finlayson is also president and operating chief.
Compiled from staff and news service reports.