News Briefs - Oct. 9
The Latest Headlines:
- Cummins to Lay Off 200 at Indiana Plant
- OPEC Oil Price Drops Below $28 a Barrel
- Teamsters, MFCA Hope for New Pact by Year's End
- Court OKs Budget Group Bonuses
- OPEC Oil Price Drops Below $28 a Barrel
Cummins to Lay Off 200 at Indiana Plant
Engine maker Cummins Inc. will cut about 200 jobs at its plant in Columbus, Ind. as it moves some production to a New York facility, Bloomberg reported.The company plans on cutting the jobs and moving the plant to Jamestown, N.Y. by the end of the first quarter of 2003, Bloomberg said.
Jason Rawlings, a spokesman for the company, said that the move had nothing do to with short-term demand, but rather is linked to long-term capacity, Bloomberg reported.
(Click here for the full press release.)
OPEC Oil Price Drops Below $28 a Barrel
The special market basket of oil types used by the Organization of Petroleum Exporting Countries to set prices, fell below $28 a barrel Wednesday, Bloomberg reported.OPEC bases its pricing on an average of seven types of oil, with a policy to adjust supply upward if the price exceeds $28 a barrel for more than 20 days.
With OPEC's average going to $27.98 a barrel after staying above $28 for 11 days, the trigger that might have activated an output increase was avoided.
Brent crude, one of the other types of oil for which prices are widely quoted, was up to $28.18 a barrel on London's International Petroleum Exchange, Bloomberg said.
Bloomberg said the oil cartel has used the price formula to boost output once, in October, 2000. Earlier that same year, the trigger was reached and the cartel declined to increase production, Bloomberg said. Transport Topics
Teamsters, MFCA Hope for New Pact by Year's End
Representatives of the International Brotherhood of Teamsters and the Motor Freight Carriers Association said Tuesday that they hope to conclude a new National Master Freight Agreement before the end of the year.In a press conference at the National Press Club, Teamster spokesmen said they would address issues of national scope like health care, pensions and higher wages, leaving for separate negotiations issues specific to certain regions or companies.
Spokesmen for the MFCA, which represents Roadway Corp., Arkansas Best Corp. USF Holland Corp. and Yellow Corp., said they will be seeking to better position their companies to be cost and service competitive.
The current contract, which covers approximately 65,000 Teamster members in the United States, expires on March 31, 2003. Transport Topics
Court OKs Budget Group Bonuses
A federal bankruptcy court approved $16.4 million in executive bonuses for 64 officers of Budget Group Inc., Bloomberg reported Tuesday.The plan makes arrangements for retention bonuses, severance payments and performance bonuses, as well as a $500,000 pool for employees shut out of those payments, Bloomberg said.
The Daytona Beach, Fla.-based car and truck rental company filed for Chapter 11 bankruptcy protection in July. Transport Topics
