News digest 13 August 2010
The BAA dispute over pay dominates the
headlines today with most papers reporting on the threat of strike
action, although no dates have been announced. There’s a few more
departures from boardrooms and more shake ups in the oil sector, a
cheer for InBev, the latest on the Labour leadership and the deaths
of two campaigners…
BAA ballot result - Unite
members at BAA have delivered a substantial vote for strike action
in a dispute over a one per cent pay offer. 6,185 workers including
security staff, engineers, fire-fighters and support staff at BAA's
six airports were balloted and 74 per cent of BAA's staff who took
part voted in favour of strike action. Unite national officer Brian
Boyd said: “BA has constantly ignored the contributions its
employees make to the ongoing success of the business, Unite
members have delivered a strong message that they deserve more.”
Acas has approached both sides to see if can facilitate a
settlement (all papers, Unite
news release)
BA talks – The Times (p9) also reports on
yesterday’s talks between BA and Unite over the long running cabin
crew dispute, more talks expected next week. The Mail (p23) also has a sympathetic
interview with an ex cabin crew attendant about what life is really
like on board and how the industry has changed.
Del La Rue departure – James
Hussey, the chief executive of printers De La Rue, stood down
yesterday amid the banknote problems that have beset the company.
The company is still investigating irregularities in one of its
paper production facilities (Times p37).
GM boss off – And Ed
Whitacre, the man who steered GM through its post bankruptcy
restructuring, will be leaving the company by the end of the year
(Telegraph b4).
Manganese reverse – Taxi
maker Manganese shares fell after the Chinese car group Geeley said
it had pulled out of a deal to take a controlling stake in the
company (Mail p81).
Stop the Tomkins sale – The
shareholder driven campaign to stop Tomkins being sold continues as
a leading Panmore Gordon analyst said shareholders were being short
changed to the tune of £500 million (Mail p82).
Hampson hit – Aerospace
components firm Hampson Industries saw its shares go into freefall
after a profits warning. Shares fell by half as the company
reported problems with delayed orders for the Dreamliner and losses
at a tools factory it bought in 2008 (Mail p80).
Hostile Korean takeover –
After Dana Petroleum spurned attempts at an agreed deal with Korea
National Oil, the Korean firm has indicated that it may be willing
to launch a £1.67 billion hostile bid (FT p13).
Oil acquisition – The
Guardian (p21) reports
that metals producer Vedanata is in negotiations to buy a stake in
the Indian spin off of Cairn Energy, the oil exploration and
extraction company, although there are questions over how the
company could fund the deal if it goes ahead.
BP fine – After the 2005
Texas explosion which killed 15 people BP has agreed to pay a $50.6
million fine to settle accusations over safety. It is the largest
ever fine agreed by a company in North America, although that sum
is likely to be dwarfed by the fine for the Gulf of Mexico oil
spill (Times p38).
Psion back in the black - The
smart phone pioneer has seen a rise in its order book and returned
to profit. The company is expected to benefit from upgrades to the
specialist mobile devices which are used by delivery drivers, local
council staff and others (FT
p16).
Pru profit – And despite the
aborted acquisition of AIA the Prudential reported a £968 million
profit even with the £377 million wasted on fees for the deal
(Express p66).
InBev boost – A boost from
sales during the World Cup saw a rise in beer volumes and profits
for InBev. Net profit rose to £738 million; the company expects a
further improvement in the second half (Telegraph b2).
Seafood slip – The Sun (p52) reports that seafood
supplier Young’s has seen a slide in its monthly sales of 20 per
cent from £14.9 million in April to £11.7 million in July.
Overseas cheese – And the
Telegraph (p9) says that
a third of cheddar cheese is now imported, some 130,000 tonnes were
shipped into Britain last year, mainly from the EU.
Eurozone worries – While the
FT (p1) also reports that concerns
in the eurozone are rising again as the spread between Greek and
Irish debt and German debt has widened, even as Germany has
recorded its fastest growth for 20 years.
Cuts chief – And Cameron has
brought in Sir Philip Green, the chief of Top Shop, to carry out an
external review of the government’s drive to cut public spending
(Guardian p2).
Dreamworks backs
UK film – The Hollywood studio
founded by Stephen Spielberg has written to the chancellor over the
closure of the UK Film Council (Guardian p5).
MoD shake up – While the
Sun (p2) says there is to be
a radical shake up of the Ministry of Defence with a new Defence
Reform Unit to review the ministry, merging the armed forces has
been ruled out but the number of senior military officers could be
cut.
Labour leadership – Most of
the papers report on the latest donations to the Labour leadership
campaign. Balls is backed to the tune of £100,000 by Ken Follett,
while Everton fan Burnham gets a £10,000 shot from Liverpool
footballer Jamie Carragher, the GMB gave Ed Miliband £28,000, but
overall David Miliband has raised the most with more than £300,000
(Sun p2).
Sadly missed - And finally
the Mirror (p21) reports on
the youngest ever victim of asbestos, Sophie Ellis was just 13 when
she was diagnosed with mesothelioma, she died last week aged 18.
The lethal cancer kills one person every five hours in Britain.
While the Morning
Star (p13) has an obituary of Jimmy Reid who led a ‘work-in’
with the Upper Clyde Shipbuilders that helped rescue the shipyards.
The Guardian’s Martin
Kettle sums it up best: “the workforce is frequently at least as
good a judge of the needs of business as the management. Sometimes,
as on the Clyde, it is a much better one.” Too
right.
Edited by Mik Sabiers
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