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Newspaper
Lawrence Journal World
Location
Lawrence, Kansas, United States of America
Date
Sep 05, 2002
Page
5
The Commerce Department reported July construction spending held at an annual rate of 834.1 billion dollars after two-month declines. While government projects rose, private builders cut activity to the lowest level in almost six years. Manufacturing growth also slowed in August, signaling a tepid economic recovery.
Gov. Bill Graves announced Sherry Brown will become Acting Secretary of the Kansas Department of Commerce and Housing effective Oct. 1 as Lt. Gov. Gary Sherrer leaves for a management job with a Leawood bank. Brown, KDOCS&H fiscal officer for eight years, previously retired and will serve until January.
Consolidated Freightways, a Vancouver Washington company, announced it would cease operations, leaving more than 400 workers unemployed in Kansas City Missouri. Competitors such as Yellow Corp are hiring drivers, and Keith Clavin of Teamssters Local 41 expects many former workers to be absorbed by area firms.
United Airlines new chief executive called the carrier's situation urgent but said bankruptcy is not certain. Glenn Tilton visited union leaders to set a cooperative tone in tense labor talks. He avoided specifics of a recovery plan on his first day, but indicated prior labor-cut demands were not necessarily out of line.
Federal prosecutors said they will file new indictments in the WorldCom case and may name additional defendants. The probe has already charged five executives, accusing them of directing others to hide 3.8 billion dollars in expenses to overstate earnings from 2000 to 2002.
Boeing officials told federal mediators they remain committed to their best and final offer presented last week to the Machinists. The contract for 25,000 workers across Washington state, Wichita, and Portland expired Monday with a strike vote possible, while the union pushed for negotiation and job growth guarantees amid rising health care costs.
An industry analyst casts doubt on selling Farmland Industries Inc. Lawrence nitrogen plant east of Lawrence Kansas, opened in 1954 and idle since May 2001, as the company seeks to emerge from Chapter 11 bankruptcy. Officials may pursue a sale or strategic alliance with court approval, while the site could attract value-added agriculture or other uses given its rail access and highway location.
A Pennsylvania judge issued a temporary restraining order preventing Hershey Foods from being sold after state officials warned of massive layoffs. The order lasts until a ruling on whether Attorney General Fisher can review the sale. Fisher and Hershey officials reacted with cautious statements amid a potential $15 billion deal.
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