Media Unspun
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Wednesday, October 2, 2002

Top Spins...
Winnick Wants One Last Swap
On the Good Ship Just-Sitting-There
Other Stories

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Winnick Wants One Last Swap

Gary Winnick is out of practice. The deft swapping skills that once helped Global Crossing trade telecom capacity with other carriers, and then led Winnick to cash in his stock for a tidy $750 million, have gotten rusty. On Tuesday he tried to swap a fraction of that booty for a dollop of forgiveness but came up with only ridicule. Tut-tut, went the general response, redemption will cost way more than $25 million.

Testifying before a House panel, Winnick's unfortunate spot in the lineup had him following an employee who told the committee members how she had lost her retirement fund. According to the New York Times, Winnick's lawyer said he knew of the former chairman's plan to donate $25 million to Global's 401(k) retirement fund, but not the timing of its announcement. That, he claimed, was a spontaneous decision by Winnick after hearing of Lenette Crumpler's $86,000 loss. We're weepy at the prospect of a contrite Winnick, but the Wall Street Journal stayed dry-eyed and got out its calculator. The $25 million, it figured, translates to $5,000 per eligible employee in the 401(k) fund. We bet Crumpler is dancing a jig.

The Journal went high with the specter of a new wrinkle in executive peer pressure, with more head honchos feeling the heat to pony up personal checks. The Washington Post described Winnick as "testy" over talk of his compensation. Hey, he said, during Global's unsuccessful effort to buy US West, he planned to take only half of the stock payoff to which he was entitled, leaving more money to be divvied up among his "family" of employees. After distributing half to the dysfunctional Global Crossing clan, that would have put Winnick's share at a piggish $350 million. Calling Dr. Melfi.

Out of the loop is how Winnick tried to position himself. He was a hands-off chairman, he told investigators, unaware of the swaps or Global's impending financial meltdown. Out of luck is more like it, as House members presented memos that showed him informed of Global's activities. In luck was ex-Qwest CEO Joseph Nacchio, whose testimony yesterday became secondary once Winnick's offer was made.

How synonymous has the Winnick name become with corporate thievery? The Los Angeles Times inventoried Winnick's various philanthropic gifts, many of which bear his name, and wrote that none are thinking of giving back Winnick's money -- yet. The Times even managed to quote a Global stockholder as he visited the Winnick Family Children's Zoo. No doubt he envisioned a few swaps of his own when looking behind the bars. - Deborah Asbrand

Global Chief Pledges to Aid Firm's Employees
http://www.washingtonpost.com/wp-dyn/articles/A29984-2002Oct1.html

Global Crossing Head Offers Workers $25 Million
http://www.nytimes.com/2002/10/02/business/02GLOB.html

Global Crossing's Chairman Offers $25 Million to Workers
http://online.wsj.com/article/0,,SB1033484925537351073,00.html
(Paid subscription required.)

With His Donation Comes His Name
http://www.latimes.com/business/la-fi-winnick2oct02,0,4955466.story

Winnick Says Global Failure Was A Surprise To Him
http://www.nypost.com/business/58536.htm

Fatcat Giving Workers 25M
http://www.nydailynews.com/business/story/23417p-22204c.html


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On the Good Ship Just-Sitting-There

From San Diego to Seattle, workers are sittin' on the dock of the bay, wastin' time. It's a union debate that's managed to annoy longshoremen, economists, retailers, truckers, railroads, and the Bush administration. We haven't seen anything this universally irritating since "The Tom Green Show."

Tension has been building for months, but the ruckus really started this weekend when the Pacific Maritime Association, which represents shipping lines, accused the longshoremen's union of a strategic work slowdown. No slowdown here, said the union, we're just pacing ourselves to follow safety regulations. The PMA didn't buy it and locked the longshoremen out of West Coast ports. Days later, the boats are still sitting there, and the media are going a little stir-crazy.

"At the heart of the West Coast port shutdown is a fight over the role of the dockworker in the 21st century," said the Seattle Post-Intelligencer. Management wants to introduce new technology to speed cargo handling, but the unions worry that this will result in lower-skilled jobs going to non-union employees.

Even liberal papers like the New York Times didn't seem to have a lot of sympathy for this labor squabble. The Gray Lady told its readers this was not a case of blue-collar labor fighting The Man but wrangling over "clerical jobs usually paying nearly $120,000 a year." The media violins mainly played for local retailers from Boston to Washington State, whose goods are stuck on idle ships. The dock shutdown could mess with two American institutions: new cars and the annual holiday buying binge. In 1999, we endured weepy articles about slow e-commerce operations ruining little Johnny's Christmas with late delivery. More of the same in 2002 if this dock thing keeps up.

As for the broader economy, the consensus was that a few days of shutdown is inconvenient but not debilitating. A few weeks, however, could be bad. Another widely-held opinion is that both sides of the dock dispute should knock it off, or everybody loses. Either way, the negotiations are getting bizarre. Talks failed on Tuesday when shipping company negotiators arrived with armed guards, and union leaders left in a huff, muttering about "gun-toting thugs." The PMA said the guards were for the lead negotiator, who'd received death threats.

Next question: Should Bush get involved? He can invoke the seldom-used Taft-Hartley Act of 1947 to send the bickerers back to work for 80 days to chill out and keep negotiating. It didn't work so well in 1978, when President Carter failed to end a national coal strike, but nervous retailers still want to give it a go. To add another complication, "such an order could be politically difficult before the Nov. 5 election as Republicans are trying to woo the labor vote," said the San Francisco Chronicle. Paging Otis Redding -- we may be watching the tide roll away for a little while longer. - Jen Muehlbauer

Economists Say Dock Dispute Won't Have a Lasting Impact
http://www.washingtonpost.com/wp-dyn/articles/A30093-2002Oct1.html

With Few Port Jobs at Issue, Economic Stakes Are Vast
http://www.nytimes.com/2002/10/02/national/02PORT.html

West Coast Shutdown Threatens Economy (Boston Globe)
http://tinyurl.com/1qur

Idle Ports Jam up Cargo
http://seattlepi.nwsource.com/business/89306_port01.shtml

Dock Fight Pits Jobs Against Technology
http://seattlepi.nwsource.com/business/89257_fight01.shtml

Retailers Start to Worry as Ports Remain Closed (Seattle Times)
http://tinyurl.com/1qus

Both Sides Pressed to End Port Dispute (Seattle Times)
http://tinyurl.com/1quu

Woes Spreading Beyond Ports (L.A. Times)
http://tinyurl.com/1quw

Lockout Has Silver Lining: Lighter Freeway Traffic (L.A. Times)
http://tinyurl.com/1qux

Port Idling Has Ripple Effect (AP)
http://www.freep.com/money/business/port2_20021002.htm

White House Intervention Possible in Port Dispute (S.F. Chronicle)
http://tinyurl.com/1quz


Other Stories

Market Springs October Surprise
http://www.thestreet.com/markets/aarontaskfree/10045412.html

Nacchio Combative (Rocky Mountain News)
http://tinyurl.com/1qv0

Meet Editor Al Gorithm
http://www.ojr.org/ojr/kramer/1033517816.php

Magazine Publisher G + J Sues Rosie
http://www.washingtonpost.com/wp-dyn/articles/A28715-2002Oct1.html

Mouse Hunting
http://www.nypost.com/business/58513.htm

AOL Chairman Tries to Calm Jittery Investors
http://www.nytimes.com/2002/10/02/business/02PLAC.html

Headline News Hot for Hip Hop Phrases
http://www.nydailynews.com/business/story/23415p-22199c.html

Worldcom Cleared to Pay Severance (Wall Street Journal)
http://www.msnbc.com/news/815679.asp

Temp Hides Fun, Fulfilling Life From Rest Of Office
http://www.theonion.com/onion3836/temp_hides_fun.html


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Staff
Written by Deborah Asbrand (dasbrand@world.std.com), Keith Dawson (dawson@world.std.com), Jen Muehlbauer (jen@englishmajor.com), and Lori Patel (loripatel@hotmail.com).

Copyedited by Jim Duffy (jimduffy86@yahoo.com).

Advertising: Erik Vanderkolk (erikvanderkolk@yahoo.com).

Editor and publisher: Jimmy Guterman (guterman@vineyard.com).

Media Unspun is produced by The Vineyard Group Inc.
Copyright 2002 Media Unspun, Inc., and The Vineyard Group, Inc.
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