BUSINESS BRIEFS
Striking workers at L.A. airport back on the job
Advertiser news services
LOS ANGELES — Striking Los Angeles International Airport workers returned to work yesterday morning, less than 24 hours after baggage handlers, security personnel and janitors walked off the job Thursday following months of failed negotiations with their employers.
The return to work came after Los Angeles Mayor Antonio Villaraigosa brokered a three-week "cooling off" period between the airline service workers and the private companies that contract with the airport for services.
Several hundred members of the SEIU Union Local 1877 went on strike Thursday at the Tom Bradley International Terminal and other terminals serving American, United, Southwest and Northwest airlines — some of the largest at the airport.
BOEING UNION REJECTS CONTRACT
SEATAC, Wash. — Leaders of Boeing Co.'s machinists union called yesterday for a strike after rejecting the aerospace giant's "best and final" contract offer. They urged union members to reject the offer in a vote set for Wednesday.
The Chicago-based company hoped the proposal, which provides added pay and incentives to workers over three years, would help it avert a labor standoff. The talks come as Boeing tries to keep up with a backlog of plane orders and avoid more penalties caused by production delays of its next-generation passenger jet.
Tom Wroblewski, district president of International Association of Machinists and Aerospace Workers District Lodge 751, said the company's offer fell short in terms of job security, wages and medical coverage, among other areas.
Boeing spokesmen said the company was "extremely disappointed" by the union's response, but is standing by its offer. The current contract expires Wednesday.
The union held a preliminary vote to authorize a strike in July. On Wednesday, members are scheduled to cast two ballots: one to accept or reject Boeing's latest offer and another on whether to begin a strike.
GAS PRICES RISE OVER STORM FEARS
NEW YORK — Retail gas prices swung higher yesterday — the first increase in 43 days — as analysts warned that a direct hit on U.S. energy infrastructure by Hurricane Gustav could send pump prices hurtling toward $5 a gallon.
Meanwhile, oil prices ended the day slightly lower, falling for a second straight session. But prices fluctuated sharply as some traders feared supply disruptions and others bet the government will release supplies from the Strategic Petroleum Reserve if Gustav wreaks havoc in the Gulf of Mexico area — home to a quarter of U.S. crude supplies and 40 percent of refining capacity.
Gustav, which regained hurricane strength yesterday, was spinning away from Jamaica on a course toward Gulf Coast states including Louisiana.
ALITALIA SEEKS AID FROM BANKRUPTCY
ROME — Alitalia said yesterday it has sought bankruptcy protection, taking the first step in a plan to reshape Italy's unprofitable and debt-laden national carrier.
The company said in a statement that its board had asked the government to appoint an administrator and had declared insolvency to a Rome court.
Alitalia has been losing about $3 million a day — hurt by labor unrest, competition from budget airlines and high fuel prices. Its shares have been suspended from trading since June.
GM CARS RECALLED FOR FIRE HAZARD
WASHINGTON — General Motors Corp. said yesterday it was recalling 944,000 vehicles because of a problem with a windshield wiper fluid system that could lead to a fire.
More than 850,000 sport utility vehicles, trucks and passenger cars in the United States and nearly 100,000 vehicles in Canada, Mexico and the Middle East are involved in the recall, the company said.
