Archive for Wednesday, December 29, 1999

BUSINESS BRIEFCASE FOR WEDNESDAY

December 29, 1999

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New oil lawsuit filed

against Koch Industries

New allegations that Koch Industries took more oil from Oklahoma wells than it paid for are being raised in court.

Allegations in a lawsuit filed Dec. 22 in Seminole County, Okla., are similar to ones considered last week by a federal jury in Tulsa.

Several owners and the city of Elk City allege that the Wichita-based company collected more oil than it paid for from leases in Seminole County.

The errant reporting occurred from 1975 to 1989, the lawsuit said.

"These volume gains have resulted in Koch receiving hundreds of thousands of barrels of oil and condensate in the state of Oklahoma which it has not paid for," the lawsuit said.

On Thursday, a federal jury found that Koch underreported the amount and quality of oil it bought between 1985 and 1989.

A federal judge will assess penalties in the case, which could be as high as $214 million. Koch says it will challenge the verdict.

Insider hires last longer

New hires are more likely to stay at a job if recruited through inside sources instead of through ads or employment agencies, studies show.

Researchers at Ohio State University assessed data from 28 studies involving nearly 39,000 employees to see what types of recruitment sources were most likely to yield long-term workers.

Their conclusion: Companies can raise their success rates by 25 percent or more by finding new workers through former employees, people referred by current employees and internal job postings.

"People who have inside sources are more likely to know what it is really like to work there," explained John Wanous, co-author of the new finding and professor of management and human resources at Ohio State.

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