The Desert Sun from Palm Springs, California • Page 50

THH DRSHRT SUN E2 SATURDAY, ljPTHM HliR 6, 2003 Business Jukebox maker files for bankruptcy Tentative Verizon agreement provides raises, maintains jobs plans to continue operations in Grand Rapids, at least for the short term, and rehire many of its 1 6 1 employees, said Eric Hanson, a partner with Alpha Private Equity Group of New York. The investment firm is coordinating the acquisition under the Alexander name. The bankruptcy court must approve the purchase offer. If the sale goes through by a Nov. 1 5 deadline, all Rowe employees face being out of work on or before that date, except those needed for the transition to the new ownership, according to court documents.

The Rowe plant has 70 salaried and 91 hourly employees. There will be an asset sale of Rowe's machinery, patents, trademarks and other tangible assets. Hanson said Alpha secured a contract. Cost-of-living increases are possible in years four and five, depending on inflation, "We said during the negotiations that a union's primary mission is to fight for jobs and a more secure future for its members. This agreement does that, and it was achieved thanks to the strong solidarity of union members during this long and difficult process," said IBEW President Edwin D.

Hill. The agreement also provides for annual, structured talks on jobs and wages to "mutually assess changes in the economy and the competitive environment and to balance any basic wage increase above 2 percent against the needs of the company to reduce the size of the work force," Verizon said. But the contract will remain in place if both sides do not agree on changes. "This landmark agreement is fair for employees and at the same time helps Verizon remain competitive in these very challenging times," said Lawrence T. Babbio, Verizon's vice chairman and president.

Pensions will increase by 1 1 percent over the life of the Annual profit-sharing cash bonuses next year through 2008 will give employees a minimum of 83,000. Health care premiums remain fully paid by the company for active workers and retirees. But employees will face increases in prescription drugs and health insurance deductibles and co-payments. Talks involving telephone workers in 12 states and the District of Columbia have been ongoing since June 16. In 2000, a strike lasted 18 days, causing a backlog of about 250,000 repair requests and new orders for Verizon.

Negotiations centered on the turbulent telecommunications market, with local and longdistance phone companies competing with cable providers for market share in the growing wireless and high-speed internet arenas. Verizon had sought to cut costs in its eroding local phone business, while workers wanted job security and access to positions being created in other areas of the company, namely wireless and high-speed Internet. Those are separate divisions of the company that aren't highly unionized. Hv Leigh Stroi'u THU ASSOCtA t'HD PHUSS WASHINGTON About 78,000 Verizon Communications workers in Eastern and Mid-Atlantic states will get raises and maintain their job protections if they approve a tentative, five-year union agreement reached after four months of contentious talks. The deal was announced Thursday night by Verizon and two unions, the Communications Workers of America and the International Brotherhood of Electrical Workers.

The unions threatened to walk out Aug. 3 after contracts expired, but federal mediators joined the talks and averted a strike by telephone operators and technicians. Preserved in the deal are contract provisions that protect workers against layoffs and prohibit transfers out of communities without employee consent. However, workers hired after the contract takes effect will not have those protections. Workers will receive immediate cash bonuses of 3 percent, or an average of SI, 600, upon approval of the contracts.

Base wages will then increase 2 percent annually, for a total of 8 percent during the BUSINESS HIGHLIGHTS THU ASSOCIATED PRESS GRAND RAPIDS, Mich. Rowe International a leading manufacturer of jukeboxes, has filed for Chapter 1 1 federal bankruptcy protection, claiming 882 million in debt. George Pinos, vice president of finance for Rowe, said the bankruptcy filing stemmed from a high debt load, the need for cash to acquire new technologies, a lagging economic climate in the industry and the general economic downturn. The lead bidder for Rowe's assets, Alexander Enterprises LLC, was identified in documents filed Wednesday with U.S. Bankruptcy Court in Grand Rapids, where Rowe is based and builds all of its products.

If Alexander acquires Rowe, it Eli Lilly Co. adjusts earnings estimates INDIANAPOLIS Eli Lilly Co. said Friday its 2003 earnings will be at the upper end of its previous estimates. Lilly's chief financial officer Charles E. Golden told analysts the company's 2003 adjusted earnings will fall between $2.55 and 82.60 a share.

In June, the company said it would earn between 82.50 and $2.60 a share. Analysts surveyed by Thomson FinancialFirst Call predicted Lilly would earn 82.57 a share. Lilly reported adjusted annual earnings of $2.57 a year ago. Lilly stock rose four cents to 861.00 on Friday on the New York Stock Exchange. Champion Enterprises says it will cut 1,000 jobs DETROIT Champion Enterprises Inc.

announced Friday it is cutting 1,000 jobs and is closing four home-building plants and 35 retail sales centers because of a continuing slump in the demand for manufactured homes. The job cuts amount to 1 3 per-cent of Auburn Hills-based Champion's work force, company spokeswoman Colleen Bau-man said. Employees found out about the layoffs on Friday morning. Champion is one of the nation's largest producers of manufactured housing. The four 0' it Committee begins work on saving the workers compensation system short-term lease to use the city-owned factory that Rowe has been leasing.

"It's obviously the largest producer of jukeboxes in the world, but it's been overburdened by excessive debt, and we think once the debt has been relieved, the company can flourish," Hanson said. Rowe's roots date to 1909, when Automatic Musical Instruments Co. started producing player pianos. In 1926, inventor William Rowe created what is widely regarded as the first cigarette vending machine, and his business quickly expanded to include a full line of food and beverage vending units. His company merged with AMI in the late 1950s to form Rowe International.

Glen A. Barton said the heavy equipment maker's annual sales and revenues will grow to 830 billion this decade from 820.15 billion in 2002. He said the bulk of increase will come from sales of machines and engines. Dow finishes day down 84; Nasdaq down 10 points The Dow closed down 84.56, or 0.9 percent, at 9,503.34. The Nasdaq dropped 10.73, or 0.6 percent, at 1,858.24.

The Standard Poor's 500 index fell 6.58, or 0.6 percent, to 1,021.39, having garnered an eight-day gain of nearly 35 points. Despite ongoing supply concerns, light, sweet crude oil futures for October delivery settled down 10 cents at 828.88 a barrel Friday on the Nymex. On London's International Petroleum Exchange, Brent blend crude oil futures also settled down 10 cents at $27.21 a barrel. Crude 011 fundamentals still indicate tight supply and strong demand, analysts and traders said. Underpinning worries about crude oil supplies are uncertainty over Iraqi oil production, low global petroleum inventories, indications the Organization of Petroleum Exporting Countries won't alter its output ceiling at its Sept.

24 meeting and a strike by white-collar oil workers in Nigeria. Wire reports The Sun Independently mved and operated till 0 1.M 1 1 home-building facilities being closed are in Georgia, Kentucky, North Carolina and Texas, the company said. Production at a fifth facility in Alabama is being moved to an idle plant, and an undetermined number of those workers also will lose their jobs. Home Depot to purchase roofing installation firm ATLANTA The Home Depot, the nation's largest home improvement retailer, announced Friday it will purchase roofing company Installed Products USA. Terms of the agreement weren't disclosed.

Home Depot is buying Tampa, Fla. -based Installed Products USA, LLC and Installed Products of California, which are collectively known as IPUSA. Installed Products is one of the largest installers of residential replacement roofing in the country and has been a contractor with Home Depot since 1997. Caterpillar says sales, revenue will increase PEORIA, III. Caterpillar Inc.

expects its sales and revenue will rise 49 percent this decade as the industry expends and more roads and houses are built to keep pace with an expanding world population. President and chief executive Island In Blliifiil nnripni if By Jake Henshaw DESERT SUN SACRAMENTO BUREAU SACRAMENTO The special bipartisan committee trying to overhaul the state's troubled workers' compensation system on Friday took its first look at how much some of its proposals would save and came up short. An analysis of the proposals which include eliminating vocational rehabilitation could only nail down $2 billion in savings. That's far short of the $5 billion to 86 billion that the committee has been discussing as a target. "Two billion dollars is not nothing," said Sen.

Richard Alarcon, D-Los Angeles, co-chair of the committee. He insisted that the proposals include a total of more than 85 billion in savings in the system that is on track to reach an annual cost of 829 billion. But Sen. Charles Poochigian, R-Fresno, a member of the committee who has been pushing for 811 billion in savings, said the hearing left doubt about the prospects of success. "So many questions have been raised today about the issues as PBS Continued from El tern, and on channel 55 through antenna reception.

KVCR will broadcast local programming every week to a much larger audience, including all of San Bernardino and Riverside Counties, as well as most of the (20 Come on now, use a little imagination! could be your very own Mediterranean villa right in the middle of the desert! Lounging casually poolside, close your eyes and you will hear Harry Belafonte's melodic voice while savoring the feel of a cool drink in your hand. You can almost hear the ocean waves! With 3,972 sq. ft. of luxurious living space, this home is guaranteed to please the most discerning individuals. Expansive, columned foyer.

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12 to wrap up its regular session for the year. But Gov. Gray Davis has said major reform of the system, in which insurance premiums have doubled in the last three years, is one of his top priorities. Davis has threatened to call lawmakers into special session if they don't produce an overhaul package in regular session. Employers say the added costs depress profits, raise prices and cause layoffs.

Some business owners say they'll leave the state, taking jobs and tax revenues with them unless there is reform. The urgency of the issue was underscored Friday as labor leaders worried about the negative effect of continued high premiums on jobs joined business representatives to push for savings. "We need to see quantifiable real savings to employers," said Barry Broad, a labor lawyer. He and other lobbyists came to Friday's hearing expecting to see Los Angeles and Orange County area. "KOCE TV has never really fulfilled its promise to devote a significant amount of programming to the Coachella Valley," said an agitated Sussman, about the change in stations.

"The Coachella Valley is expanding and it deserves, if not to have its own station, to have programs de- Spa! A lifestyle limited fTJ Fred Sands at $2,325,000. IZJ ivn ran a draft of workers' compensation legislation, but none was available. Instead, the committee reviewed an analysis of various proposals by the Workers' Compensation Insurance Rating Bureau, a nonprofit, insurer-supported association whose duties include assessing the actual costs of insurance coverage for the insurance commissioner. The analysis concentrated on medical costs, including proposals for a new fee schedule for doctors and hospitals, drugs, outpatient surgery centers, and a cap of 24 visits per claim each to chiropractors and physical therapists. Right now, there is no cap on such visits.

There also was a proposal to repeal mandatory vocational rehabilitation and shift some of the savings to permanent disability benefits for injured workers. While there is broad agreement that one way to save money is cut back on the unnecessary use of medical service, the rating bureau wasn't able to calculate savings for such a cutback for a number of reasons, including the lack of specific treatment standards. voted to the area." Sussman said that when he spoke with Larry Holden, interim station manager for KVCR, he got a guarantee that its programs would find ways to appeal to the new valley audience. Holden said that the valley will be included in its weekly news program, which broadcasts on Fridays, and its weekly restaurant reviews. He added that the station was happy to ink a deal with Sussman, in order to get further penetration into the Inland Empire.

KVCR will broadcast the Desert Cities Report, as well as "Let's Dine Out," "Evening Edition," and "Doctors on Call," all produced by Raven Productions. Sussman said he is looking forward to a new program in development with Raven that would feature roving interviewers. The show will seek out ordinary valley residents to comment on issues from growth to environmental problems in places like the Salton Sea. He insisted that the program will stay away from the standard crowd of ubiquitous valley politicians. Mel Rogers, president of KOCE TV, said that the station had been talking with Time Warner about being broadcast through digital cable.

Rogers said that it will probably be several weeks before KOCE is back on the air in the valley. Rogers said KOCE has always taken coverage of the valley seriously, especially since many Orange County residents have second homes in the area. But he said there were no immediate plans to increase valley-oriented programming. Jonathan D. Colbum covers business for the Desert Sun.

He can be reached at 778-4643 or by e-mail at Jonathan.Colburn thedeserti.com. hi IS iKUw mjmmmm mm (California PIYiJ gEJ )ESERTHORALE -Ariistic Director Jackie Doyl Palm Springs Convention Center AUDITIONS SI 10th Anniversary Season Sept. 8th Sept. 11th For Appt. Info.

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