Business Briefcase

Air traffic controllers join French labor strike

A strike by French air traffic controllers forced the cancellation of hundreds of flights in and out of France on Tuesday, creating havoc for travelers across Europe during a nationwide walkout by civil servants.

The air traffic controllers joined bus, subway and train drivers, hospital workers, and electricity and telephone utility staff in the strike over pay, retirement benefits and the French government’s privatization plans.

The protests, above, were the biggest labor challenge yet for the 5-month-old government of center-right Prime Minister Jean-Pierre Raffarin, which has made a priority of selling off the state’s stake in many French companies to raise cash.

Utility: El Paso Corp’s ratings dropped to junk status

Moody’s Investors Service downgraded El Paso Corp.’s debt ratings to junk Tuesday, citing concerns about weak cash flows and a pending Federal Energy Regulatory Commission ruling on whether the company withheld natural gas during California’s energy crisis in 2000 and 2001.

James Haines, who recently was named as president and CEO for Topeka-based Westar Energy, served as the president and CEO for the El Paso company until November 2001.

Telecommunications: Judge OKs partial deal between SEC, WorldCom

A federal judge approved a partial settlement between WorldCom and federal regulators Tuesday that calls for an unspecified fine and continued government oversight of the telecommunications company.

The settlement, stemming from civil fraud charges related to the company’s $9 billion accounting scandal, includes a permanent injunction barring further violations of security laws, U.S. District Judge Jed Rakoff said.

The settlement also calls for the continuation of a court-appointed monitor for WorldCom, with the possibility of expanding the monitor’s role, Rakoff said.

Aviation: Appeals court nullifies Boeing settlement

A federal appeals court Tuesday threw out a $15 million settlement in a class-action case accusing Boeing Co. of discriminating against about 15,000 black employees.

The 9th U.S. Circuit Court of Appeals objected to the $4 million in attorneys’ fees under the 1999 settlement, and the large disparity in the payments provided to the employees.

The settlement covered two class-action suits brought on behalf of former and current Boeing employees.