The Gazette from Montreal, Quebec, Canada • 15

EARLY ED. THE GAZETTE, MONTREAL, TUESDAY, NOVEMBER 5, 1996 GIBC sets up high-tech venture fund- Canadian executives bypass union, appeal directly to employees JAMES McCARTEN More than 1,000 airline employees, next four years. CANADIAN PRESS some accompanied by spouses and children, crowded into a northeast Cal But employees say they want to make the choice for themselves. CANADIAN PRESS gary hangar Saturday to hear him talk. Another 150 workers attended a similar "I'm going to fight long and hard to make sure every employee of this com Canadian Both the machinists union and the Canadian Auto Workers, which represents 3,000 ticketing and reservation agents, have rejected Benson's plan and called on Ottawa to bail out the airline and the industry Ottawa's decision to deregulate the airline industry is to blame for Canadian's ills, said auto workers spokesman Peggy Nash.

"Put some rules in place in terms of routes, who can enter and what you charge in terms of fares," Nash said. "That's the best solution for long-term job security and viability" What began as a fight to preserve wage levels is evolving into a battle for the very survival of the unions, said Louis Gialloreto, a marketing professor at McGill University "If (the union accepts) every wage cut management proposes, what's the point of having a union?" Gialloreto said. "The employees will look at it and say 'I'll take the 10-per-cent cut and maybe I'll get back the 2 per cent I'm paying in union CALGARY Managers at Canadian Airlines International are breaking federal labor laws by appealing directly to workers about the carrier's cash crisis, a union leader suggests. Meetings across the country between executives and employees are illegal under provisions of the Canada Labor Code, Dave Ritchie said in an interview yesterday "They have no right to bargain directly with our people," said Ritchie, vice-president of the International Association of Machinists. "As far as I am concerned, they have broken the law because the union is the sole exclusive bargaining unit." Airline spokesman Diana Ward said the company would not comment on Ritchie's claim.

Canadian chief executive Kevin Benson met with workers during the weekend to explain the company's position. TORONTO-The Canadian Imperial Bank of Commerce is setting aside1 1 $100 million in venture-capital finance ing for knowledge-based industries. The fund, announced yesterday, willr make investments of between and $2 million in small high-tech panies seen as poised for growth. Unlike bank lending, the CIBC fund will partly own the ventures in whicrr it invests, hoping to sell later at a CIBC said its fund is aimed at compa-; nies in computers, telecommunica-' tions, instrumentation, the environ-'" ment and multimedia CIBC also announced a partnership-with Silicon Valley Bank to make it easier for Canadian companies ex-'' panding into the U.S. to get lines of credit of up to $10 million through the, California bank.

meeting Sunday in Edmonton. Ritchie said the company was told the union would take legal action if the meetings went ahead. The airline announced last week it will not survive into the new year if workers don't take a 10-per-cent wage cut. It also expects about 250 people will lose their jobs. Ritchie's union, which represents 5,300 maintenance and cargo workers at Canadian, is in a pitched battle with the company over the proposed cut.

Ritchie has made it clear his union has no plans to allow members to vote on the wage cut. It's part of a broad plan Benson said will save the nearly bankrupt airline $800 million over the pany has a vote," said Peter Janovcik, a reservations agent in Calgary. There's a groundswell of grass-roots support for Benson and his plan, said Janovcik, who organized an employee-driven campaign to save the airline during a similar crisis in 1992. "I don't think it's the union's right to make anyone else's mind up for (them)," he said. This year, employees agreed to wage rollbacks as part of a two-year restructuring package to save the Calgary-based company.

Canadian said it could run short of money for fuel, services and supplies by January The airline lost $49 million in the first nine months of 1996. iffVA lobal refocuses on Quebec after setback in Alberta CGGEC0 CASLE lC. MARY LAMEY THE GAZETTE "You can't be a national network until you get Quebec." DIVIDENDS SUBORDINATE VOTING SHARES NOTICE is hereby given that a quarterly dividend of $0.06 per share on the outstanding subordinate voting shares of Cogeco Cable Inc. has been-declared, payable in cash on November 22, 1996 trr holders of record at the close of business -on. November 8, 1996.

This represents an increase of $0.01 over the previous quarterly dividend. Dated at Montreal, Quebec, this 25th day of October 1996. BY ORDER OF THE BOARD John Elder Secretary intervenes with the broadcast authority. Last year, it did and created a hue and cry in both political and broadcasting circles when the cabinet told the CRTC to re-examine its decision not to grant a license Power DirecTv to offer direct-to-home satellite service. For the time being, Global must refocus its energies on Quebec, where its application to revitalize CKM-TV in Quebec City will begin Dec.

2. CKMI, a partnership between Global and Tele-Metropole, is currently a CBC repeater station but could become Global's Quebec flagship. If there is an up side to the Alberta decision, it is that the CRTC recognized the need for new competition, Sward said. Emotional appeals from community groups and complaints from competing radio and TV stations that the advertising pie is too small to share did not sway the commissioners. "In the end, the commission said that after 21 years it's time to turn up the heat and allow competition.

That's encouraging," Sward said. That could be good news in Quebec, where Global faces vociferous opposition from CFCF-12 in Montreal, aimed at keeping the Winnipeg interloper out of the local market. CFCF has enjoyed a 35-year monopoly on private English broadcasting in Montreal and last week launched a campaign aimed at swaying public opinion against Global. Sward said he doubted the CRTC would be moved by appeals to emotion. "That was not the case in Alberta.

There, the choice was between allowing a national network (to develop) or in allowing a local, local, local operation." That might not have been the most visionary decision, Sward said. "In choosing to focus on local issues in Alberta, the CRTC may have overlooked the larger issue of a third national network." The commission chose Craig and its commitment to air 31 hours a week of local programming in Calgary and Edmonton. For its part, Global promised to invest $165 million on programming, providing it received licenses in both Alberta and Quebec. The money was to be spent on creating a national 6:30 p.m. newscast, more children's programming and Canadian dramatic programs.

Can West Global Communications Corp. was dealt a heavy blow Friday when the Canadian Radio-television and Telecommunications granted two Alberta television licenses to rival broadcaster, Craig Broadcasting Systems of Brandon, The decision marks the second time since 1993 that the federal regulator has denied Winnipeg-based Global access to the Alberta market. Alberta and Quebec represent the pieces needed to fulfill chairman Izzy Asper's long-cherished dream of establishing a third national network. "In economic terms, you need Alberta to complete the network. In social, political and human terms, you can't be a national network until you get Quebec," Jim Sward, Global's president said yesterday The Alberta ruling came "as a stunner," Sward added.

The company will appeal to the federal cabinet, in the hopes the Chretien government will direct the CRTC to re-examine its decision. The federal government seldom GUARANTEED SIX MONTHS INCREASES TO OVER SIX YEARS GOVERNMENT OF CANADA BOND 1-800-811-0527 (Quebec) 934-0586 (Montreal) ROTHENBERG CAPITAL MANAGEMENT 4420 St. Catherine St. W. Westmount f) Ford, CAW near deal Automaker agrees to restrict contracting out union jobs mortgage rates helped push the value of residential building permits higher for the third straight quarter from July to September.

Statistics Canada said yesterday municipalities issued home-building permits worth $3.9 billion in the period, up 1.1 per cent from the pre VALERIE LAWT0N CANADIAN PRESS rm iWimir -1 lft I FREE luxury room for 2 plus FREE popcorn! For a limited time only, yov have a choice of 3 exciting first run movies, including "Courage Under starring Meg Ryan. Admittedly, $99 is more than the usual price of admission, but it does ADMIT. TWO to a ONE NIGHT FREE luxury room at the Montreal Aeroport Hilton with popcorn too. So why not cosy up with your favourite movie date together with Hollywood's best and make a spectacular night of it. Available Friday Saturday nights until December 21.

For Reservations call (514) 631-241 1 TORONTO Ford Canada and its 12,000 workers took a big step closer to a deal yesterday as the country's second-largest carmaker agreed to restrictions on contracting out. "We are within reach," Buzz Hargrove, president of the Canadian Auto Workers union, told a news conference. He said there could be a deal as early as today Ford agreed to a contract pattern set recently at the other Big Three automakers in Canada Chrysler and General Motors Canada. That deal includes restrictions on contracting out union jobs to cheaper outside suppliers. It also provides wage hikes of two per cent in each of three years.

Contracting out was the major sticking point that sent 26,000 GM Canada workers to the picket line for three weeks last month. "I'm quite relieved that Ford has agreed to the pattern without forcing our members on to the street," Hargrove said. Top Ford negotiator Don McKenzie also appeared optimistic. "Obviously there are aspects of the settlement that given a clean sheet of paper I might have done it different." he said. "But it is the pattern and we have made a decision that we are going to track the pattern." Despite the progress, there were still a number of local plant issues outstanding.

The union has set a strike deadline of Wednesday evening. Now that its U.S.union contract talks are over, General Motors Corp. will reward investors with a dividend increase of up to 50 per cent and a stock-buyback plan as early as next month, David Bradley, an analyst with J.P. Morgan, said yesterday. GM built up $14.5 billion in cash and securities to with vious quarter.

0CE acquires shares BCE Inc. said it has acquired an additional 80,000 common shares of Northern Telecom boosting its stake in Nortel to 132,543,623 shares, or about 51.2 per cent of the total outstanding. Big contract for CAE BEIJING CAE Inc. said its Montreal company, CAE Electronics has received a $4-million contract to manufacture Remote Terminal Units for Shenzhen Telecom Equipment Co. in Shenzhen, China.

Bid to buy back shares Coreco Inc. said it will make a normal-course issuer bid through the Montreal and Toronto stock exchanges to acquire up to 418,527 of its common shares, or about 10 per cent of publicly held shares. Coreco said the bid will begin tomorrow and end Nov. 5, 1997. Zollinger mails offers TORONTO Hollinger Inc.

and its subsidiary, Hollinger International said Holbidco a unit of Hollinger International, mailed its offer to shareholders of Southam Inc. to purchase 7 million shares of Southam at $18.75 a share in cash. The offer is subject to certain terms, including Hol-bidco's right not to buy any shares unless at least 7 million are tendered. The offer is open until Nov. 28.

CANADIAN PRESS, DOW JONES Levi wins trademark battle with Lois jeans TORONTO Levi Strauss has won a suit against a Quebec jean maker that infringed on Levi trademarks in the sale of millions of pairs of jeans. The case against Lois Canada, a Canadian-owned company based in Sainte-Foy, but which has a licensing agreement with Lois Jeans of Valencia, Spain, started in 1981. It concerned two well-known Levi trademarks its red tag emblem and curved stitching used on the back pockets of its jeans. Under the decision, filed in the Federal Court of Canada yesterday, Lois was found to have infringed on both trademarks by using a black tag similar to that on Levi's and the same curved stitching. The company was ordered to pay Levi Strauss a penalty based on profit made from the sale of jeans using the offending trademarks.

Lois said in court documents that it sold more than three million pairs of jeans with the trademarks between 1974 and 1981. Vidsotron buys stores Group Videotron Ltee said its Su-perClup Videotron Ltee subsidiary has acquired five stores from the Place Video chain. Terms of the acquisition weren't disclosed. Groupe Videotron said the acquisition increases Super-Club's network to 90 retail outlets throughout Quebec, including 21 corporate stores and 69 franchises. Parallels taken over In the latest in a series of takeovers in the office-products sector, Parallele Business Products of Pointe Claire has been acquired by Toronto-based Grand Toy Ltd.

Paralleled seven employees will all join the staff, raising the number of employees to 26 at its St. Laurent base. Ordiplan markets tool Mpact Immedia Corp. said it has signed a contract with Ordiplan Inc. under which Ordiplan will market Mpact's Edikit tool directly to other software-application providers or will integrate Edikit into its own proprietary software.

Building permits up OTTAWA Low prices and falling fUK MONTREAL AEROPORT PY fljl! jj 12505 Cote de Liesse, Dorval Appointment 11 NOTICE stand strikes in Canada and the U.S. The walkouts by the CAW and United Auto Workers probably cost about $650 million, analysts said. The tentative UAW agreement reached Saturday appears to allow the company to cut its UAW work force by about 30,000 and shed unprofitable operations, analysts said. ADDITIONAL REPORTING: BLOOMBERG The University of Calgary is pleased to announce the installation of Dr. Tcrrence White as sixth President andVice-Chanccflor.

1 Dr. White brings to the of a weal ill of senior management experience, a strong research background in organizational change and quality of working and a high level of community involvement. After earning his doctorate at the University of Toronto he assumed a number 13 of leadership positions at Canadian universities including the JfVA Km CONGRESS FINANCIAL CORPORATION CANADA is pleased to announce the opening of its Montreal office Thierry J. Gforieux Vice President 300 Rene-Levesque O. Suite 2450 Montreal, Quebec H3B4V7 5 1 4) 874-8002 Fax (5 1 4) 393-3965 Asset-Based Financing Since 1 948 http.Avww.congressfinancial.com Toronto 4 16) 364-6080 Atlanta Baltimore Boston Chicago Dallas Los Angeles Miami Montreal New York Portland San Juan A gS CoraSlatas Company Terry White Prtsidi'M and Vke-Lhunctllor University of Windsor and the University of Alberta, culminating with his service to Brock University as lis President and Vice- Chancellor for the past eight years.

Young, modern and dynamic, The University of Calgary is now Alterta's most research-intensive university and serves -more than 22.000 full and part-time students through us 16 laculties. Real future COGECO DIVIDENDS SUBORDINATE VOTING SHARFS NOTICE is hereby given that a quarterly dividend of $0.04 per share on the outstanding subordinate voting shares of COGECO Inc. has been declared, payable in cash on November 22, 1996 to holders of record at the close ol business on November 8, 1996. This represents an increase of $0.01 over the previous quarter. Dated at Montreal, Quebec, this 25th day of October 1996.

Br ORDER OF THE BOARD Guy Labelle Secretary A THf I IMIVFDCITV AC WHS CALGARY J-.