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Issue No. 135 10 May 2002  
E D I T O R I A L

The Costs of War
John Howard's chickens will come home to roost in the next week when Peter Costello delivers a dog of a federal budget.

F E A T U R E S

Interview: Squaring Off
NSW Industrial Relations Minister John Della Bosca looks beyond last year's WorkCover dispute to rebuild relations between the wings of the labour movement.

Industrial: Heroes Betrayed
Seafaring veterans joining the protest against the CSL Yarra sell-out this week were fighting for their heritage, reports Jim Marr

History: At The Coalface
An oral history of working life on the NSW coalfields has been brought to life by ABC Radio.

International: Wobblies With Chinese Characters?
Workers in China's industrial heartland have started killing their bosses as a form of labour protest., writes Andrew Casey

Politics: Dancing with Trotsky
John Passant re-reads an old political favourite and argues that as fascism in Europe grows the Left must learn the lessons of history.

Economics: You Are What You Eat
Something's eating at Neale Towart, all those Aussie food brands in foreign hands.

Poetry: Alexander's Bragtime Band
When the foreign Minister, Alexander Downer, announced this week that �Australia, internationally, has never been better regarded,� the leaders of the world sagely nodded their heads.

Satire: Stott Despoja Celebrates Engagement With Minor Party
Australian Democrats leader Natasha Stott Despoja says she will celebrate her engagement to public relations consultant Ian Smith in typical Democrat style, with a minor party.

Review: Painting Paradise
NSW Upper House MLC Ian West meets Currawong's artist in residence Sophie Haythornthwaite.

N E W S

 Gun-Runners Threaten Aussie Coast

 Kings Cross Date For Commissioner Cole

 Sunbeam Irons Out Sydney Grand Mother

 Low-Paid Gridlock Melbourne

 NSW Libs Open to Abbott Takeover

 Ten Points for IT Workers

 Low Paid Target Rose Bay Toff

 Terror Bill Needs More Work, ACTU

 Wage Clerks Duck For Cover

 Burma Release Fails to Blunt Campaign

 East Timorese MPs oppose Timor Sea Arrangement

 Airport Screeners Face Men in Jocks

 Black Label Roots For Hessian

 Back Chat for Child Laws

 Barking The Wrong Way In NSW

 Unions Push into Regional Queensland

 Activists Notebook

C O L U M N S

The Soapbox
Live a Little!
MEAA state secretary Michel Hryce tells Young Labor the party needs to get funky.

The Locker Room
Something To Chew On...
Peter Filandia gave sports commentators something to chew on with the recent revelations regarding his activities with the old choppers, writes Phil Doyle.

Postcard
Slow Train Coming
Union Aid Abroad's Phil Hazelton sends another missive from South-East Asia where union money is helping the people of Lao.

Bosswatch
A Share of the Action
Big half-yearly results for the banks, a kick-along for a bomb-maker and a debate about executive options at the 'Woodstock for Capitalists'.

Week in Review
Too Much Telly
That little box in the corner takes top billing as the cypher through which the comings and goings of an eventful week are best relayed, as Jim Marr finds out �

Tool Shed
The Speculator
Labor frontbencher Mark Latham has taken out a controlling stake in this week's Tool Shed with his whacky idea that Labor should be underwriting speculation on the stock exchange.

L E T T E R S
 Heaps and Heaps of Hate Mail
 No Choice
 Who Rules Australia?
 No Wrap for Song Comp
 Abbott's Contempt
WHAT YOU CAN DO
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A Share of the Action


Big half-yearly results for the banks, a kick-along for a bomb-maker and a debate about executive options at the 'Woodstock for Capitalists'.
 

Westpac Profit Hits Nine Figures

Westpac has denied its half-yearly profit of more than $1 billion has come about through the neglect of its customers and staff. has expressed his delight at the profit result. Westpac has posted a $1.02 billion half-year profit to March, a 10 per cent improvement on last year's half-year of $924 million - delivering an interim dividend of 34 cents to shareholders. Westpac chief executive David Morgan it is a clean solid result and he denies it has come at the expense of customer service. "Our customers are doing more business with us than ever before. Their satisfaction ratings are up," he says.

ANZ Promises Shorter Queues

Elsewhere in the banking sector, ANZ Banking Group Ltd has expanded its customer charter, making ten promises to customers as part of what it says is a further effort to restore customer faith in banking services. The customer charter, effective immediately, establishes benchmarks for the provision of service to personal and small business customers. This includes new promises on simple accounts, fees and charges, quick, convenient branch banking including a target to serve customers within five minutes of arrival and a national review of branch opening hours. As well, it includes promises on fast, efficient phone service including standards for maximum waiting times when calling to speak to a customer service representative. The Finance Sector Union is interested in learning how the new policy sits with recent cuts to staffing numbers.

Explosive result Driven By Staff Cuts

Explosives manufacturer Oric ahas posted an $80.4 million profit for the six months to the end of March, a result which beyond market expectations. CEO Malcolm Broomhead is enjoying the boucquets after sacking 10 per cent of the company's workforce. Broomhead claims the cost-cutting program produced savings of $25 million. Orica is the world's largest manufacturer of explosives for the mining industry, and there is strong demand in Australia for its products, mainly from coal-mining companies. The company's other main market is the United States, which has returned to profitability in the six months to March.

Austar Vaule Drops as CEO Pay Rises

As regional teleco Austar's value plummets, the personal value of its CEO John Porter is heading in the opposite direction. Porter was paid a tidy $1.16 million for running the bush pay TV outfit in 2001, a handsome 35 per cent increase on the $856,000 he received for his services in 2000. Not a bad reward for the year that Austar lost $682 million, sacked a third of its staff, failed to sign up more pay TV customers and defaulted on its loan repayments (although it has since sorted its funding out). Porter's base salary only increased by a paltry $80,000 to $540,000. The real windfall came in the form of tax equalisation payments, which went from $67,000 in 2000 to a whopping $452,000 in 2001. A company spokesman defended the $270,000 in bonuses, which were paid last April, claiming they related to the 2000 calendar year.

Bosses Thrive With Non-Cash Bonuses

Perks for corporate bosses go beyond pay to cars, entertainment expenses, airline clubs, golf club and gym memberships, private travel and mobile phones, to name just a few. The most used perk available to employees were discounts off company goods and services. In some cases, the company paid for their education. The Australian Institute of Management's latest national salary survey found that executives and managers did not get that much more lucre last year. But the non-wage bonuses still ensured few were crying poor. the perks. The survey found that 55.3 per cent of senior executives were offered cars, 10.7 per cent a second one, 43.6 per cent airline club memberships, 7.9 per cent memberships at the gym, social club or golf club, and 4.8 per cent private travel.

And the Winner Is .....

US company E*Trade Group Inc paid chief executive Christos Cotsakos $US77 million ($A143 million) in 2001, more than four times what any Wall Street CEO earned. Mr Cotsakos' compensation included $US29 million in restricted stock, forgiveness of a $US15 million loan, and another $US15 million for taxes after the loan was reclassified as compensation, according to a filing to the Securities and Exchange Commission. This is despite E*Trade losing $US253 million since 1997, including a $US241 million loss in 2001 as online trading slumped in the wake of stockmarket declines. Mr Cotsakos' pay - about 35 times what he earned in 2000 - comes as the company's board negotiates his new contract, to replace one expiring in May. The company, which is facing declining business and consolidation in the online brokerage industry, said it gave him part of the raise to help retain him.

Buffet Slams Option Excesses

Also in the US, Berkshire Hathaway chairman Warren Buffett has argued executive compensation through options is both "shameful" and "immoral"

The annual Berkshire Hathaway meeting - dubbed the "Woodstock for capitalists." - was told that attempts to hide the use of options as compensation should be opposed by shareholders. Buffett who receives receive annual compensation of $US100,000 ($185,000) from Berkshire, chastised fellow leaders of US companies for greed and compensation that puts executives' interests ahead of shareholders'. Buffett said chief executives were trying to convince lawmakers to change the way options from compensation were expensed on balance sheets. "It's shameful that this group that is getting well fed under the system wants more," he said.


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