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Winnipeg Free Press - PRINT EDITION

Business Watch

By: Staff Writer

Posted: 05/23/2012 1:00 AM | Comments: 0

Strike begins at CPR

TORONTO -- Teamsters Canada says a strike against Canadian Pacific is now under way and CP has suspended its freight service across the country.

The union, which represents about 5,000 CP workers, says the two sides were unable to reach an agreement despite talks that continued until the deadline.

Both the union and CP spokesman Ed Greenberg says the negotiations will continue on Wednesday.

The two sides had met with federal Labour Minister Lisa Raitt on Tuesday morning and continued negotiations throughout the day. Teamsters vice-president Douglas Finnson says major points of contention are pensions, some work rules and fatigue management.

Google secures Motorola

SAN FRANCISCO -- Google has completed its US$12.5-billion purchase of Motorola Mobility in a deal that poses new challenges for the Internet's most powerful company as it tries to shape the future of mobile computing.

The deal closed Tuesday, nine months after Google Inc. made a surprise announcement that it wanted to expand into the hardware business with the most expensive and riskiest acquisition in its 14-year history. The purchase pushes Google deeper into the cellphone business, a market it entered four years ago with the debut of its Android software, now the chief challenger to Apple Inc.'s iPhones. In Motorola, Google gets a cellphone pioneer that has struggled in recent years. Motorola hasn't produced a mass-market hit since it introduced the Razr cellphone in 2005.

Walmart board opposed

NEW YORK -- One of the largest pension funds in the U.S. says it will vote its 5.3 million shares against all of Walmart's board nominees -- including the company's current and former CEOs -- at the retailer's annual meeting next week.

The California State Teachers' Retirement System, known as CalSTERS, said Tuesday it has lost faith in the board's independence amid allegations of bribery in Walmart's operations in Mexico.

In late April, the New York Times reported Walmart allegedly failed to notify law enforcement after its own investigators found evidence that $24 million in bribes was funneled through its Mexican unit in the hopes of speeding building permits and winning other favours.

Tokyo tower opens

TOKYO -- The Tokyo Skytree, twice as tall as the Eiffel Tower, and its surrounding retail and office complex opened Tuesday with thousands lining up in the rain for a first look at the US$1.8-billion development.

Owner Tobu Railway expects the 634-metre tower and its surrounding building to draw 32 million visitors in its first year, surpassing the numbers at Tokyo Disney Resort. The rail company is counting on the development, which also includes an aquarium and planetarium, to lure shoppers as Japan's shrinking population threatens to damp rail travel.

Big chain sells hotels

NEW YORK -- Accor says it has agreed to sell Motel 6 and another North American economy hotel brand to an affiliate of the Blackstone Group for $1.9 billion.

The French company says Motel 6 and Studio 6, an extended-stay economy chain, encompass 1,102 hotels in the U.S. and Canada. Accor SA says the deal, expected to close in October, will give it the resources it needs to boost growth in the Asia Pacific region, Latin America and Europe.

Best Buy's profit drops

NEW YORK -- Best Buy Co. said Tuesday its fiscal first-quarter profit dropped 26 per cent on restructuring charges as the struggling electronics retailer began implementing a turnaround plan.

But its adjusted earnings and revenue both topped Wall Street's expectations. That's sorely needed good news for the electronics chain as it attempts a restructuring to update its increasingly outmoded "big-box" model.

-- from the wire services

Republished from the Winnipeg Free Press print edition May 23, 2012 B7

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