Macquantradiction

By Bosswatch

Hang on! Didn't we report last week that Macquarie Airports were to cut forty percent of its workers over the next year due to 'commercial pressures'? This week those same pressures mattered little as Macquarie Airports rubbed salt in the wounds of nervous employees by confidently backing its ability to raise $54 million for a mere 2.5% increased stake in Sydney Airport. In a weird week of contradictions, we report on executives who earn more than their bosses and a group of fund managers (God bless them) who have come on board the exec pay issue by voting against executive pay rises at AGM's.

PICKS OF THE WEEK

Macquarie nabs Abbey Sydney Airport stake

Macquarie Airports is to raise its shareholding in Sydney Airport to nearly 50 per cent following the decision of Abbey National of Britain to quit its investment barely a year after buying in.

Full story: http://www.theage.com.au/articles/2003/07/16/1058035070780.html

Warning shot fired over exec pay deals

AMP Henderson has put the heat on other fund managers by revealing it is increasingly prepared to vote against generous pay deals for bosses and top executives.

Full story: http://www.smh.com.au/text/articles/2003/07/15/1058035010055.htm

Optus chief dials big numbers

DESPITE taking an 80 per cent pay cut last year, Optus chief executive Chris Anderson is still paid more than his boss, SingTel CEO Lee Hsien Yang.

Full story: http://www.news.com.au/common/story_page/0,4057,6758880%5E15306,00.html

Banks in court on WA Inc collapse

A SYNDICATE of Australian banks - and the role it played in the murky days of the 1980s asset shuffle in Western Australia, better known as WA Inc - will finally have its day in court.

The claim of more than $1 billion against the banks, including Westpac, the Commonwealth and the National Australia Bank, starts in Perth on Monday.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,6759628%255E643,00.html

Aristocrat hits back on sacked CEO

ARISTOCRAT Leisure is believed to be preparing a countersuit against former chief executive Des Randall in response to his $12.9 million claim for severance pay.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,6738542%255E643,00.html

Late bid to nail Turnbull for credit card 'fraud'

NRMA president Ross Turnbull just can't seem to shake the controversy over the careless use of his corporate credit card.

Full story: http://www.smh.com.au/text/articles/2003/07/13/1058034878389.htm

New Tel bosses to face lawsuit

THE liquidator to the collapsed telecommunications group New Tel will launch legal action against Peter Malone and fellow directors of the failed telco within a month, alleging they allowed the company to trade while insolvent for at least six months.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,6747176%255E643,00.html

HIH UPDATE

Bosswatch keeps you up to date with the ongoing HIH saga.

Adler to stand trial over HIH share deal

A magistrate completed a bad week for Rodney Adler yesterday when he ordered that the former head of FAI Insurance stand trial on five criminal charges.

Full story: http://www.smh.com.au/text/articles/2003/07/11/1057783358780.htm

Threat of court suit for HIH directors

HIH liquidators intensified their fight to claw back cash for creditors yesterday, warning of legal action against directors, advisers and others linked to the failed giant insurer.

Full story: http://www.theaustralian.news.com.au/common/story_page/0,5744,6755493%255E643,00.html

LEGISLATION NEWS

Though ASIC claim to be on the ball when uncovering dodgy dealings at the big end of town, sceptical boards are beginning to bypass the regulator and the police by hiring there own investigators.

ASIC puts squeeze on dodgy dealings

Since July last year, the corporate watchdog has banned or given enforceable undertakings in more than 30 instances

Full story: http://www.theage.com.au/text/articles/2003/07/11/1057783353752.htm

Companies turn to private sleuths

With corporate fraud on the rise in Australia, many companies are opting to solve their problems without the police.

Full story: http://www.theage.com.au/text/articles/2003/07/13/1058034875322.htm

INTERNATIONAL

Understanding COKE

Coca cola has been in the news this week with allegations of accounting and marketing fraud in the US, the huge rugby world cup advertising deal done with David Campese and the 'less than amicable' takeover of Neverfail. Is this the same company with its fingers in every pie? Follow the steps to understand the differences between Coke in Australia and Coke everywhere else.

STEP 1. Go to the Coca Cola Amatil timeline avail at: http://www.ccamatil.com.au/ Then go to About CCA and then select CCA History.

STEP 2. Read the following...

Largest Shareholder--The Coca Cola Company (TCCC) has a 35% shareholding in Coca Cola Amatil (CCA) and, like all shareholders, participates in share price movements and the dividends paid. Two Directors of CCA's eight-member Board are nominated by TCCC.

Supplier--Under a series of long term bottling agreements with varying expiry dates, TCCC provides the concentrate and beverage base from which the finished products are manufactured by CCA. Each year the companies jointly develop sales and marketing plans (which include brand strategies, marketing execution, in-market sales execution and wholesale pricing).

Brand Owner--TCCC is focused on consumer marketing, including advertising and promotion, the development of new brands, and innovative brand and packaging plans. These marketing activities are funded by TCCC. CCA's marketing activities are primarily focused on developing and maintaining strong customer relationships, and implementing the marketing strategies and plans. This trade marketing is funded by CCA.

STEP 3. A breakdown of CCA Interests/profits is available at: http://www.ccamatil.com.au/images/uploads/annual/2002/Operating_Facts.pdf

WORLD WIDE WEB

Who reports Coke Abuses?

The International Labor Rights Fund (ILRF) is an advocacy organisation dedicated to achieving just and humane treatment for workers worldwide. ILRF serves a unique role among human rights organisations as advocates for and with working poor around the world. The ILRF believe that all workers have the right to a safe working environment where they are treated with dignity and respect, and where they can organise freely to defend and promote their rights and interests. The ILRF are committed to overcoming the problems of child labour, forced labour, and other abusive labour practices. The ILRF promote enforcement of labour rights internationally through public education and mobilization, research, litigation, legislation, and collaboration with labour, government and business groups.

http://www.laborrights.org/projects

QUOTE OF THE WEEK

10 more useful expressions for those HIGH STRESS days at work...

1. Did the aliens forget to remove your anal probe?

2. Errors have been made. Others will be blamed.

3. Let me show you how the guards used to do it.

4. And your crybaby whiny-assed opinion would be...?

5. I'm not crazy, I've just been in a very bad mood for 30 years.

6. Sarcasm is just one more service we offer.

7. Do they ever shut up on your planet?

8. I'm just working here till a good fast-food job opens up.

9. I'm trying to imagine you with a personality.

10. A cubicle is just a padded cell without a door.

For further information

Contact:   Chris Owen
Email:   c.owen@labor.org.au