04/09/2012 World Business Report


04/09/2012

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headlines from BBC News. Now for the latest financial news with

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Sally Bundock and World Business Report.

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Welcome to World Business Report. The headlines: Another day of

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disruption for Lufthansa flights as cabin crew step-up their strike

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action over pay. A day of high level negotiations across Europe

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today. Will European leaders deliver answers to the debt crisis?

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accused of employee in under-age workers. -- employing. A strike is

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underway by Lufthansa cabin crew this morning. Their main union has

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called on staff to strike at Frankfurt Airport until 2pm local

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time and at Berlin's Tegel Airport until 1pm local time. On Friday a

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strike at Frankfurt Airport caused almost 200 Lufthansa flights to be

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cancelled. The union says its strikes will get longer and more

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widespread from now on. So how far could this dispute escalate?

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These Rhodesians at Frankfurt airport last Friday. -- were the

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scenes. 150 flights had to be cancelled. More and more airports

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will be affected from now on. They are demanding a 5% pay rise for

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flight attendants. Lufthansa is offering 3.5%. They are striking

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against company plans to of the pay and conditions. As part of a $2

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billion cost-cutting exercise. the union gives now, the impetus

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will be with Lufthansa to push through changes to terms and

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conditions which have already been negotiated through the union. The

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union will have lost the dispute. This dispute will be running for

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several months. Other airlines have faced similar opposition to changes

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in employment terms. Iberia pilots caused chaos in Spanish airport

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last winter. Iberia eventually got its way in the dispute, something

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Lufthansa or will there as well. Lufthansa has about 1 billion euros

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in the bank. Unless the union can bring the company to its knees

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pretty quickly, management will rely on that cash to tide it over

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and win the dispute. Air France are planning to introduce cost-cutting

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measures similar to Lufthansa. They will face fierce union resistance.

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September is likely to be an important month of European leaders

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as they tackle the region's debt crisis. And today there will be a

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flurry of activity. French President Francois Hollande travels

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to Rome to meet the Italian Prime Minister Mario Monti. The two will

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hold a press conference after the meeting. German Chancellor Angela

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Merkel meets the European Council President, Herman van Rompuy, in

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Berlin. The Greek finance minister, Yannnis Stournaras, is also in

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Berlin today to meet with his German counterpart, Wolfgang

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Schaeuble. Marie Diron is the senior economic adviser to the

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Ernst & Young Eurozone Forecast. Thank you for coming in. It is no

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coincidence they are having all these meetings before Thursday's

:04:10.:04:20.
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announcement? Yes, we will begin with the ECB message on Thursday.

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We will hear a lot of measures on Greece, on Spain, throughout the

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month. What do you think the different leaders are trying to

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push for today? Real differences about the bond buying programme.

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There are still a lot of differences. We are not going to

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hear anything today. It will be on Thursday. The differences are

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between Germany, which wants to make these bond purchases highly

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conditional on a set of measures taken on by the government.

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Countries like Spain would like this purchase programme to be more

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open and more flexible. The intentions are there, the decisions

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are difficult to take. This week, they're meeting ahead of the ECB

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announcement. Once we get beyond that, a very important vote going

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on in Germany on 12th September. Yes, Germany is the last country

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that needs to ratify this treaty for the ESM to come in. That is to

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provide funding to Spain. It is unlikely they will vote against it.

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It would provoke a chain reaction and start panic again. We will get

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Spain's reaction to the European Central Bank announcement on

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Thursday. Greece is continuing in the background. The Greece

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government has asked for more time on the bail-out plan. The troika

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will be negotiating as the meetings go on as to whether they will get

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that. With think they will get a bit more time, not as much as they

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would like. They have made progress and effort. There will be a

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compromise. Thank you for coming in. Samsung Electronics will inspect

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its suppliers in China after one of them was accused of using child

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labour. In total 250 firms will be inspected. Rico Hizon is in the

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BBC's Singapore office. Tell us about Samsung and its

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investigations. A probe this stemmed from a US based NGO

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expressing concern that a Samsung supplier had employed seven

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children younger than 16 working in the factory. Samsung, which

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conducted its own investigation of the company, said it found no

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under-age workers. It identified several incidents of poor

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management, unsafe practices and improper safety measures. They

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warned the supply to immediately improve its conditions or else it's

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contract will be terminated. The electronics giant is taking the US

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based NGO probe very seriously. They say they will conduct

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inspections for 195 of its supply companies. They will review another

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144 suppliers that make products for them and other companies. After

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the reviews, if there is some violation, contracts with those

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supply companies will be terminated. Thank you. Spanish authorities have

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approved a massive cash injection for struggling lender Bankia.

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Bankia will receive 4.5 billion euros, that's $5.7 billion from

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Spain's national bank rescue fund. The bailout still needs approval

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from the Bank of Spain and the government.

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Lonmin has warned that a strike at its South African mine is

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threatening 40,000 jobs. Lonmin says there is a limit to how long

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it can keep the Marikana mine open without staff to run out. The

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strike has been going of for almost four weeks and 44 have died in

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violence around the facility. Seven suits belonging to former

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British Prime Minister, Margaret Thatcher, fetched �73,000, or

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$115,000, at auction on Monday. Six of the suits were bought by an

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online bidder in South Korea. The highest price was paid for a jade

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green suit worn on the day she was confirmed as leader of the

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